Government Finance and Employment

Classification Manual

Covering the activities of Federal, State, and local governments.                                                                                                                                                       

Effective with the fiscal year 1987-88 finance and October 1988 employment surveys.

                                                                                                                   June 1992

                                    PREFACE



       Governments are both diverse and complex organizations.  To
       describe their financial and employment activities in a mean-
       ingful and comparable fashion--both across time and among
       governments--requires a set of standardized concepts and
       definitions.  The purpose of this classification manual on
       government finances and employment is to provide such guidance. 


       This latest edition of the classification manual becomes
       effective with fiscal year 1987-88 finance data and October 1988
       employment data.  It represents the first major revision since
       the 1982 version and contains the most substantial changes to
       this classification system since 1952.  It also introduces a
       significant redesign of the manual's format in as many years. 


       The Census Bureau has been gathering statistics on state and
       local governments since the 1840 Decennial Census.  The present
       classification system largely dates to the early 1950's when it
       received a major overhaul in preparation for the Bureau's
       expanded responsibility in this field.  The basic features of the
       system remain intact today despite periodic expansions and
       contractions. 


       Like prior editions, the realities of both data availability and
       collection methods impose certain limitations on the use of this
       coding system.  For example, mail survey questionnaires for small
       governments often collect less detail, requiring data to be
       summarized or classified into "all other" categories; final data
       assembled for these small governments, therefore, may not reflect
       the full detail possible within this coding framework.  Both data
       compilers and users should be aware of these types of limitations
       regarding the data produced by this classification schema. 

        
       This manual is produced in limited volume and is intended for
       administrative use by the Bureau of the Census.  Copies are
       available, however, upon request to Federal Government agencies,
       financial and statistical offices of state and local governments,
       public interest groups, private research organizations, and
       serious data users.  Inquiries should be addressed to: 


                         Governments Division 
                         U.S. Bureau of the Census 
                         Washington, DC 20233 
                         Telephone: (301) 763-7664 


                                                                                                               TABLE OF CONTENTS
                                                                                                                   (Summary) 



Preface 
Guide to Symbols and Notations Used in this Classification Manual 


                                                                                                                    Topics:


   1.   Introduction To Revised Classification Manual

   2.   A Brief History Of Census Bureau Data Collection on Governments

   3.   Framework Of Census Bureau Statistics On Governments

   4.   Functional Classification Of Government Activities

   5.   Public Employment And Payroll Statistics

   6.   Overview Of Government Finance Statistics

   7.   Revenue

   8.   Expenditure

   9.   Indebtedness

  10.  Cash And Security Holdings

  11.  Social Insurance Trust Systems

  12.  Liquor Stores And Lotteries Exhibits




                             TABLE OF CONTENTS
                                               (Detailed) 


Preface
Guide to Symbols and Notations Used in this Classification Manual


CHAPTER 1. INTRODUCTION TO REVISED CLASSIFICATION MANUAL

CHAPTER 2. A BRIEF HISTORY OF CENSUS BUREAU DATA COLLECTION
                      ON GOVERNMENTS

  2.1  Historical Background on Data Collection Efforts 
   2.11  Finance Data 
   2.12  Employment Data 

  2.2  Evolution of Data Classification System 
   2.21  Finance Data 
   2.22  Employment Data

CHAPTER 3. FRAMEWORK OF CENSUS BUREAU STATISTICS ON GOVERNMENTS

  3.1  The Basic Unit of Reporting: The Government Entity 
   3.11  Types of Government Entities 
   3.12  Definition of a Government Entity 
   3.13  Dependent Agencies Checklists 
   3.14  Parent Government Concept 
   3.15  Joint Activities of Governments 

  3.2  The Four Sectors of Government Activities 
   3.21  General Government Sector 
   3.22  Utilities Sector 
   3.23  Liquor Stores Sector 
   3.24  Insurance Trust Sector 

  3.3  How Census Bureau Statistics Relate to Original Data Sources 
   3.31  Federal Government Statistics 
   3.32  Broad Coverage of Activities 
   3.33  Treatment of Accounting Funds 
   3.34  Terminology and Classification 
   3.35  Reporting Periods 
CHAPTER 4. FUNCTIONAL CLASSIFICATION OF GOVERNMENT ACTIVITIES

  4.1  Background 

  4.2  Primary vs Secondary Function
   4.21  Public Institutions 

  4.3  Data Crossing Functional Lines 

  4.4  Relation to Federal and State Government Programs 

  4.5  Unique Special District Function Codes 

  Table:
    4-1 Cross-Classification of Revenue, Expenditure, and Debt Codes by Function 

  Charts:
    4-A Detailed Categories for Reporting Functional Expenditures and
              Employment, by Functional Grouping 
    4-B Detailed Categories for Reporting Functional Expenditures and
              Employment, by Function Code

  Description Sheets 

CHAPTER 5. PUBLIC EMPLOYMENT AND PAYROLL STATISTICS

  5.1  Background 

  5.2  Basic Concepts and Definitions 
   5.21  Employees/Employment 
   5.22  Full-Time vs Part-Time Employees 
   5.23  Payrolls 
   5.24  Hours Worked by Part-Time Workers 

  5.3  Derived Employment Statistics 
   5.31  Full-Time Equivalent Employment 
   5.32  October 1986 Revision to Full-Time Equivalent Calculation Method 
   5.33  Average October Earnings 
  5.4  Functional Categories Unique to Employment Survey 
    
  5.5  Special Topics During Census of Governments 

  Chart:
    5-A Functional Categories Applicable to Employment Data 

CHAPTER 6. OVERVIEW OF GOVERNMENT FINANCE STATISTICS

  6.1  Primary Basis of Government Finance Statistics 
   6.11  Four Sectors of Government from a Finance Viewpoint 

  6.2  Accounting Basis 
   6.21  Accounting Funds (or Entities) 
   6.22  Cash vs Accrual Basis of Accounting 
   6.23  Generally Accepted Accounting Procedures (GAAP) 

  6.3  Major Finance Concepts 
   6.31  Statistical Nature of Data 
   6.32  Current Dollars 
   6.33  Noncash Transactions 

  6.4  Intergovernmental Transactions 
   6.41  Intergovernmental Fiscal Relations (Type 1) 
   6.42  Fiscal Agents for Other Governments (Type 2) 
   6.43  Purchases from Other Governments (Type 3) 
   6.44  Netting Out Duplicative Intergovernmental Transactions 
   6.45  Payments to Other Government Insurance Trust Systems 

  6.5  Agency, Private Trust, Investment, and Other Transactions 
   6.51  Agency Transactions 
   6.52  Private Trust Transactions 
   6.53  Investment Transactions 
   6.54  Adjustment and Correction Transactions 

  6.6  Internal Transfers 
   6.61  Interfund Transactions 
   6.62  Intragovernmental Service Funds (Revolving Funds) 
   6.63  Interdepartmental Charges

  6.7  Miscellaneous Topics 
   6.71  Suspense Transactions 
   6.72  Capital and Operating Leases 
   6.73  Anomalies of Government Finance Statistics 
   6.74  Exhibit Statistics 

  Chart:
    6-A Examples of Accounting Funds and Their Treatment in Census
             Bureau Statistics on Government Finances

CHAPTER 7. REVENUE

  7.1  Revenue Definition 
   7.11  Refunds and Correcting Transactions 

  7.2  General Revenue 
   7.21  Taxes (and the Visibility Test) 
   7.22  Intergovernmental Revenue 
   7.23  Current Charges 
   7.24  Miscellaneous General Revenue 

  7.3  Liquor Store Revenue 

  7.4  Utility Revenue 
   7.41  Intergovernmental Revenue Codes for Utilities 

  7.5  Insurance Trust Revenue 

  Description Sheets

CHAPTER 8. EXPENDITURE

  8.1  Expenditure Definition 
   8.11  Refunds and Correcting Transactions

  8.2  General Expenditure 
  8.3  Liquor Store Expenditure 

  8.4  Utility Expenditure 
   8.41  Intergovernmental Expenditure Codes for Utilities 
   8.42  Joint Utility Projects (Public and Private) 

  8.5  Insurance Trust Expenditure 

  8.6  Character and Object Categories 
   8.61  Construction Data Improvement 

  Table:
     8-1 Cross-Classification of Expenditure and Function Codes 

  Chart:
     8-A Description of Character and Object Categories

CHAPTER 9. INDEBTEDNESS

  9.1  Debt Definition 
   9.11  Liabilities Outside Census Bureau Definition 
   9.12  Major Classification Changes with Fiscal Year 1987-88 Data 

  9.2  Four-Way Classification of Public Debt 
    
  9.3  Public Debt for Private Purposes 
   9.31  Related Revenue, Expenditure, and Cash and Security Issues 

  9.4  Refunding of Long-Term Debt 
   9.41  Regular Refunding 
   9.42  Advance Refunding 

  9.5  Derived Debt Statistics 
   9.51  Borrowing and Redemption 
   9.52  Change in Debt 
   9.53  Net Long-Term Debt Outstanding 

  9.6  Other Debt Topics 
   9.61  Zero Coupon and Other Deep Discount Bonds 
   9.62  Bond Banks and Pooled Debt 
   9.63  Leases and Lease-Purchase Agreements 
   9.64  Taxable Public Debt 

  Chart:
     9-A  Examples of Liabilities Included and Excluded from Census Bureau
              Definition of Public Debt 

  Description Sheets

CHAPTER 10. CASH AND SECURITY HOLDINGS

  10.1  Cash and Security Holdings Definition 
   10.11  Assets Outside of Census Bureau Definition 
   10.12  Major Classification Changes with Fiscal Year 1987-88 Data 

  10.2  Types of Cash and Securities Covered 

  10.3  Purpose of Holdings of Cash and Securities 
   10.31  Insurance Trust Funds 
   10.32  Other Than Insurance Trust Funds 
   10.33  Additional Notes Regarding Offsets to Debt Category 

  10.4  Pooled Investments 

  Chart:
     10-A Examples of Assets Included and Excluded from Census Bureau
                Definition of Cash and Securities 

  Description Sheets

CHAPTER 11. SOCIAL INSURANCE TRUST SYSTEMS

  11.1  Definition of Social Insurance Trust System 
   11.11  Examples of Insurance Systems Included and Excluded by this Definition

  11.2  How Insurance Trust Statistics Relate to Regular Finance Statistics

  11.3  Types of Insurance Trust Systems 
   11.31  Public Employee Retirement Systems 
   11.32  Unemployment Compensation Systems 
   11.33  Workers' Compensation Systems 
   11.34  Other Insurance Trust Systems (including Federal-only ones) 

  11.4  Insurance Trust Exhibit Codes 
   11.41  Public Employee Retirement Exhibit Codes 
   11.42  Unemployment Compensation Exhibit Codes 
   11.43  Workers' Compensation Exhibit Codes 
   11.44  Other Insurance Trust Systems Exhibit Codes

  11.5  Special Topics 
   11.51  Classifying Debt for Unemployment Compensation Funds 
   11.52  Loans to Parent Government by Insurance Trust Systems 
           
  Chart:
     11-A Summary of Insurance Trust Codes (Regular and Exhibit) 

CHAPTER 12. LIQUOR STORES AND LOTTERIES EXHIBITS

  12.1  State Liquor Stores Exhibit Statistics 

  12.2  Lotteries Exhibit Statistics 
   12.21  How Lotteries are Treated in Regular Finance Statistics 



       GUIDE TO SYMBOLS AND NOTATIONS USED IN THIS CLASSIFICATION MANUAL 
       

       Abbreviations: 


       Generally, abbreviations are explained where they are employed.
       Below are common ones used throughout this manual: 

           AKA    Also Known As 
           NEC    Not Elsewhere Classified 
           PDPP   Public Debt for Private Purposes 
           PL     Public Law 
           (X)    Not applicable 


       Special Symbols: 


       The asterisk (*) and dash (-) symbols are used to indicate
       possible variations in finance codes.  For instance, "-01" refers
       to any possible code for air transportation expenditure, the dash
       (-) representing the possible character and object prefix (e.g.,
       E01, F01, L01, etc.). 

       Likewise, "21*" refers to any possible code for long-term
       full-faith and credit debt issued, the asterisk (*) representing
       the possible function suffix (e.g., 21A, 21B, 21X, etc.). 


       Control Codes: 
        

       One of the major goals of this revised classification manual is to
       make revisions to it easier to apply.  Thus, the manual was
       redesigned to be more modular in format, thereby allowing each
       section to be revised separately if needed.

       To identify the most current version of each section, there is a
       control code and release date at the bottom right corner of each
       page in the manual.  For this first edition, the control code for
       all sections is zero (0) and the date is June 1992 (6/92). 

       The following table, which will be updated with each revision,
       shows the current control code for each section of the manual.
       Note that each section shown represents the pages that can be
       revised separately; individual pages within each section will not
       be revised by themselves. 
        






















       MASTER CONTROL SHEET FOR CLASSIFICATION MANUAL CONTROL CODES
       
        The chart below shows the current control codes and release
         dates for each section of this manual.  The control codes
         shown represents the most recent version for that section.

                                                   Control    Release
                        Section                     Code        Date
       *****************************************  *********  **********

        TABLE OF CONTENTS (Summary)                  0         6/92

        TABLE OF CONTENTS (Detailed)                 0         6/92

        GUIDE TO SYMBOLS                             0         6/92

        CHAPTER 1 - Narrative                        0         6/92

        CHAPTER 2 - Narrative                        0         6/92

        CHAPTER 3 - Narrative                        0         6/92

        CHAPTER 4 - Narrative                        0         6/92
                  - Table 4-1                        0         6/92
                  - Chart 4-A                        0         6/92
                  - Chart 4-B                        0         6/92
                  - Description Sheets              (See Chart 4-A)

        CHAPTER 5 - Narrative                        0         6/92
                  - Chart 5-A                        0         6/92 

        CHAPTER 6 - Narrative                        0         6/92
                  - Chart 6-A                        0         6/92

        CHAPTER 7 - Narrative                        0         6/92
                  - Description Sheets:
                      Taxes                          0         6/92
                      Intergovernmental Revenue      0         6/92
                      Current General Charges        0         6/92
                      Miscellaneous Revenue          0         6/92
                      Liquor Store-Utilities         0         6/92
                      Insurance Trust Revenue        0         6/92

        CHAPTER 8 - Narrative                        0         6/92
                  - Table 8-1                        0         6/92 
                  - Chart 8-A                        0         6/92

        CHAPTER 9 - Narrative                        0         6/92
                  - Chart 9-A                        0         6/92 
                  - Description Sheets               0         6/92

       CHAPTER 10 - Narrative                        0         6/92
                  - Chart 10-A                       0         6/92   
                  - Description Sheets               0         6/92

       CHAPTER 11 - Narrative                        0         6/92
                  - Chart 11-A                       0         6/92 

       CHAPTER 12 - Narrative                        0         6/92

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                                                                                                  Knowledge is of two kinds: we know a subject
                                                                                          ourselves, or we know where we can find information upon it.

                                                                                                                                                                                                                 Samuel Johnson



                                                                                               The great end of life is not knowledge but action.

                                                                                                                                                                                                                  Thomas Huxley




















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______________________________________ ______________________________________
______________________________________ ______________________________________
______________________________________ ______________________________________

          CHAPTER 1.  INTRODUCTION TO REVISED CLASSIFICATION MANUAL 


       Although this new edition of the classification manual contains
       the most substantial revisions to the classification system since
       1952, its changes do not represent a break with the system.
       Rather, they reflect the changing nature of both public sector
       finances and the methods used to collect statistics on them,
       namely: 

        - Governments are resorting to more nontraditional methods of
          financing their activities, which defy efforts to be
          categorized according to previous definitions. 

        - Government reporting has become more summarized, resulting in
          either less available detail or more effort to collect it. 

        - In particular, government debt issues have become increasingly
          complex and difficult to identify in terms of their functional
          purpose.  Management of cash and security holdings to maxi-
          mize returns through such instruments as pooled funds has made
          identification of the type of holdings more difficult. 

        - The growing use of central collection arrangements with state
          governments for local government data applies limits to the
          amount of detail that can be collected. 

       In recognition of these realities, the Census Bureau has made the
       following changes to its classification system: 

        o Functional detail on government indebtedness has been consol-
          idated into fewer categories.  Moreover, a new functional
          category, "Public Debt for Private Purposes," has been created
          in order to identify the explosive growth in public debt to
          fund such private activities as industrial and commercial
          activities, pollution abatement facilities, mortgage debt
          financing, and more. 

        o Detail on the type of cash and security holdings (cash on
          hand, Federal securities, etc.) has been eliminated except for
          statistics on public employee retirement systems. 

        o The different categories identifying the recipient government
          of intergovernmental expenditures have been collapsed, espe-
          cially for local government statistics. 

       Major changes have also been made to the format of this classi-
       fication manual, reflecting its changing uses and audience.
       These revisions include: 

        o The scope of the manual has been expanded to cover Federal
          Government activities as well as public employment statistics,
          both of which share common definitions and concepts with state
          and local government finances. 

        o It incorporates guidelines and subjects previously found
          elsewhere (e.g., in internal memoranda).  For instance, the
          previous edition did not mention public debt for private
          purposes, the largest category of debt existent today. 

        o Its users include not only Census Bureau staff who compile
          data on the statistics of the largest governments, but also
          others in the Bureau, data users, legislators, and other
          government officials. 

        o The manual has been reorganized into different topics compared
          to previous editions.  At its core are "description sheets"
          providing detailed definitions, descriptions, and examples of
          each data category.  These are designed for easy replacement
          by future updates. 

       Finally, this classification manual does not cover every area of
       the Governments Division, most notably: 

        - Taxable property values phase of the census of governments 

        - Geographic distribution of Federal spending surveys 

        - Single audit program 

        - Integrated postsecondary education data system (IPEDS) and the
          special codes unique to elementary-secondary education data 

        - Special surveys on government criminal justice activities
          conducted on behalf of the U.S. Department of Justice. 

         




               CHAPTER 2.  A BRIEF HISTORY OF CENSUS BUREAU DATA
                           COLLECTION ON GOVERNMENTS 


       Contents and Abstract: 

       2.1 Historical Background on Data Collection Efforts 
        2.11 Finance Data 
        2.12 Employment Data 

       2.2 Evolution of Data Classification System 
        2.21 Finance Data 
        2.22 Employment Data


       The first attempt to collect data on the activities of state and
       local governments occurred during the 1840 Decennial Census; the
       first serious effort really did not begin until the 1850 Census.
       Data collection efforts expanded during the decennial censuses
       until the creation of a permanent census office in 1902. 

       Beginning in that year, the Bureau began to conduct special, if
       sporadic, censuses of governments up until the early 1950's, when
       the Bureau's authorizing legislation expanded the scope of its
       efforts in this field and created the quinquennial census of
       governments and the annual surveys conducted today. 

       During this time, the data classification system has evolved from
       one focusing on taxable wealth and debt to detailed measurements
       of government finance activities.  Today's schema is largely
       identical to that put into place during the early 1950's. 

       This chapter is based largely on the text to the Historical
       Statistics on Government Finances and Employment report from the
       1982 Census of Governments. 


       2.1 Historical Background on Data Collection Efforts


       Although the first collection of data on governments occurred
       during the 1840 Decennial Census (numbers and types of schools
       and pupils), the first concerted effort began with the 1850 one.
       This section of the decennial census was expanded successively
       until the 1880 Census which resulted in a 914-page volume
       entitled, "Valuation, Taxation, and Public Indebtedness" (which
       also provided a few statistics on revenue and expenditure).
       Annual surveys began on a sporadic basis in 1898. 

       The first comprehensive compilation of governmental statistics,
       however, awaited the creation of a permanent Census Office in
       1902.  The 1902 Census of Governments led to an extensive volume
       on Federal, state, and local government revenue and expenditure,
       assessed valuations, and tax levies; public debt; and estimates
       of "national wealth" by state and class of property (reflecting
       the large dependence on property taxes).  Other censuses of
       governments, varying in detail and scope, were conducted in 1913,
       1922, 1927, 1932, and 1942. 

       In 1950, the Congress enacted legislation expanding the Census
       Bureau's responsibilities in this field (Title 13, Section 161 of
       the U.S. Code).  It established that a census of governments be
       conducted every five years (those ending in "2" and "7") but
       ironically no funds were appropriated for the first one covering
       1952.  This event did not occur until 1957. 

       It was also during the 1950's that the Bureau began the annual
       finance and employment surveys generating the report series
       largely in existence today. 


       2.11 Finance Data 


       Historically, the Census Bureau's finance data collection efforts
       have focused on the activities of individual city and state
       governments, at least until the 1950's.  This reflected the major
       roles played by these two types of governments and the lack of
       modern statistical methods to derive estimates from a sample of
       local governments. 

       City Government Finances--Since the creation of a permanent
       census office in 1902, the Bureau has published city government
       finance data annually (except for 1914 and 1920); coverage has
       varied, however.  Until the mid-1950's, the survey focused on the
       largest municipal governments (i.e., no effort was made to
       estimate the financial activities of all cities).  Further,
       before 1941 the annual series included data not only for the city
       corporation itself but also overlapping jurisdictions (except
       county governments for cities of less than 300,000 population). 

       State Government Finances--Annual data collection efforts began
       with 1915 data and has continued on a regular basis except for
       1920, 1921, and 1933-36 when budgetary problems limited
       activities.  In addition to the annual State Government Finances
       report series, the Bureau began releasing preliminary data on
       state tax receipts in 1939. 

       County Government Finances--A sample-based mail survey of county
       government finances was conducted for the years 1940 through
       1946, providing national estimates, limited state area data, and
       individual county government figures for selected units.
       Although data were collected annually for the Government Finances
       reports, publication of individual county government data was
       suspended until the fiscal 1972-73 survey. 

       Other Finance Data--The Bureau began conducting an annual sample
       survey on public debt in 1940 and expanded it to include revenue
       in 1945.  Estimates of national totals by type of government were
       published from these surveys, which were replaced in 1952 with a
       broader survey canvassing data on expenditure and cash and
       securities as well. 

       Until the 1957 Census of Governments, however, this annual survey
       was insufficient to provide any but national estimates of
       financial activities.  The results of the 1957 Census were used
       to create a more reliable sample that provided state area
       statistics beginning with 1958 data. 

       In addition to the annual surveys, the Bureau began conducting a
       quarterly survey on state and local government tax revenues in
       1962 and on finances of major public employee retirement systems
       in 1968. 

       One of the major impediments during this growth in data
       collection was the poor financial reporting practices of state
       and local governments.  The text to the earlier publications
       actually admonished state and local officials to improve their
       accounting methods. 


       2.12 Employment Data 


       Census Bureau collection of data on public employment and payroll
       began in 1940 with quarterly, national summary estimates by type
       of government, supplemented by occasional reports for the various
       types of governments.  Before 1946, the coverage of this survey
       was limited to nonschool employment of state, county, city, and
       township governments; data for educational employees and payrolls
       were estimated from data provided by the U.S. Office of
       Education.  By 1946, the program was expanded to include special
       districts and school districts as well as the school employment
       of general purpose governments. 

       State area employment statistics by level of government have been
       issued annually since the early 1940's (except 1951) although
       functional detail was limited then to school vs nonschool
       employees.  Starting with 1951 data, the Bureau collected
       separate data on payrolls of full- and part-time employees,
       thereby permitting the calculation of full-time equivalent
       statistics.  By converting part-time employees to their full-time
       equivalent, these statistics provide more meaningful comparisons
       of employment levels among governments. 

       In mid-1951, the quarterly survey was modified to provide monthly
       figures as well, which continued through January 1955 data.
       After then, monthly and quarterly data on public employment have
       been collected by the U.S. Department of Labor with the Bureau's
       efforts focused on an annual sample survey and periodic census to
       provide national and state area data for October of each year. 

       In years when a census of governments is conducted, the Bureau
       frequently has expanded its data collection in this subject area
       to include such topics as labor management relations, coverage
       for selected employee benefits, and government costs for
       providing employee benefits. 


       2.2 Evolution of Data Classification System 


       These developments in data collection on government finances and
       employment have also been matched by the evolution of the
       classification schema used.  By today's standards, some of these
       earlier standards may seem crude at best.  Also, they reflect the
       larger economy within which governments operate (thus, the
       interest in taxable property wealth in an economy that generated
       less cash income than today's.) Yet, the classification system
       that exists today was designed largely in the early part of this
       century and is nearly identical to that established in the early
       1950's. 


       2.21 Finance Data 
       

       Although data on government finances were collected as part of
       the decennial censuses during the previous century, the methods
       and definitions used produced data that are of "historical"
       interest but not comparable to those collected later.  For data
       collection efforts in this century there are three periods within
       which the data collected have been comparable: 

          1902 to 1936      1937 to 1950      1952 et seq. 

       1902 to 1936--While there were difference during this period in
       the scope and detail on wealth, debt, and taxation, the basic
       conceptual framework remained the same.  The Bureau applied a
       broad definition to public debt, including such now excluded
       items as noninterest bearing warrants.  Like today, the Bureau
       sought to categorize government revenues (then termed "revenue
       receipts") and expenditures ("cost payments").  Functional
       categories resembled many of those used today, except in fewer
       numbers.  (City finances, on the other hand, provided much more
       functional detail on current expenditures that at present.) 

       1937 to 1950--Beginning in 1937 and expanded in 1941, the Bureau
       placed more emphasis on separately identifying intergovernmental
       transactions and distinguishing the different sectors of
       government, then designated as "general government",
       "enterprises", and "trust and sinking funds." Although similar in
       name to current categories, they were not identical in nature or
       application. 

       The concept of "enterprises", for instance, included not only
       government-operated liquor stores and utilities but also other
       types of business-like activities: toll highways, airports, and
       commercial activities of state universities, and the like.
       Furthermore, finance data for this sector were reported in
       commercial accounting terms (e.g., depreciation) rather than in
       terms consistent with the other government sectors. 

       Similarly, the definitions used for the "trust and sinking funds"
       sector differed from those used today for insurance trust
       statistics.  Payroll taxes for unemployment compensation systems,
       for example, were classified as taxes rather than insurance trust
       revenue.  The offsetting contribution to the unemployment
       compensation fund was categorized as a "general expenditure for
       contributions to trust funds." 

       Even the "general government" sector differed from the current
       one.  In addition to including certain insurance trusts revenues,
       it covered transactions between other sectors on a "net contri-
       bution" basis.  Expenditure included retirement on general debt
       which consisted of not only direct redemption but also any
       contributions to sinking funds. 

       One consequence of this classification schema was that the
       sectors of government were not additive.  That is, it was
       impossible to determine a government's total financial activity
       by summing the three sectors. 

       1952 and later--The present classification system dates largely
       to that created in the early 1950's.  The four sectors of
       government now used were created and intragovernmental
       transactions among them eliminated, thereby allowing their
       summation.  The enterprise sector was eliminated except for
       liquor stores and the four types of utilities; the remaining
       commercial-like activities were subsumed into the general
       government sector. 

       The definition of intergovernmental revenue and expenditure
       transactions was broadened to include not just "fiscal-aid"
       (grants and shared taxes) but also monies for contractual
       services (other than as a regular customer of utilities).
       Another change, more in presentation than concept, was the
       reporting of functional expenditures in terms of total outlays
       rather than limited just to current operations. 

       One effect of these classification changes was to render all
       prior year data obsolete, or at least not comparable to later
       data.  For this reason all available data for years before 1952
       are based on special studies done in the 1950's to recompile
       pre-1952 data on a basis comparable to the current system. 


       2.22 Employment Data 
       

       Prior to 1952, the functional detail collected on public
       employment was limited to distinguishing between school and
       nonschool employees, except for state and major city governments.
       Since 1952 the subclassification of employment data by function
       has been expanded. 

       As noted above, beginning in 1951 the Census Bureau started
       collecting payroll data separately for full- and part-time
       employees which allowed for the calculation of full-time
       equivalent statistics (see Section 5.31).  Up until 1985 data,
       the method used to calculate these figures was based solely on
       payroll data.  Effective with 1986 data, the annual employment
       survey started collecting data on the number of hours worked by
       part-time employees in order to use a method deemed to be a more
       accurate representation of full-time equivalent employment.  No
       October 1985 full-time equivalent data are available. 

       See Chapter 5 for a more detailed discussion of full-time
       equivalent employment.

       CHAPTER 3.  FRAMEWORK OF CENSUS BUREAU STATISTICS ON GOVERNMENTS 


       Contents and Abstract: 

       3.1 The Basic Unit of Reporting: The Government Entity 
        3.11 Types of Government Entities 
        3.12 Definition of a Government Entity 
        3.13 Dependent Agencies Checklists 
        3.14 Parent Government Concept 
        3.15 Joint Activities of Governments 

       3.2 The Four Sectors of Government Activities 
        3.21 General Government Sector 
        3.22 Utilities Sector 
        3.23 Liquor Stores Sector 
        3.24 Insurance Trust Sector 

       3.3 How Census Bureau Statistics Relate to Original Data Sources 
        3.31 Federal Government Statistics 
        3.32 Broad Coverage of Activities 
        3.33 Treatment of Accounting Funds 
        3.34 Terminology and Classification 
        3.35 Reporting Periods 


       The definitions and concepts comprising the Census Bureau's
       classification system on government finances and employment are
       established upon a framework whose understanding is as important
       as the system itself. 

       The focus, or basic reporting unit, of these statistics is the
       government entity, defined by the Bureau using the guidelines
       below.  Data are assembled for these individual entities which
       also serve as building blocks to produce larger aggregations of
       data--county area, state totals, and national figures--by
       themselves or according to the various types of governments the
       Bureau recognizes. 

       As a group, governments are multi-functional organizations,
       providing a wide range of services to a broad group of people.
       The Bureau classifies their activities into four major sectors of
       government, three of which pertain to specialized functions. 

       Finally, Census Bureau statistics on governments are not mere
       reproductions of the data found in original government data
       sources.  In order to produce meaningful comparisons among all
       governments, the Bureau applies consistent standards of coverage,
       terminology, and reporting periods that often result in data that
       differ from those reported by governments themselves. 


       3.1 The Basic Unit of Reporting: The Government Entity 


       The focal point, or basic reporting unit, of Census Bureau
       statistics on public finances and employment is the individual
       government.  This entity includes not only the central government
       but also those agencies, institutions, and authorities which are
       connected to it. 
       To determine which of the many organizations with governmental or
       quasi-governmental character should be included in its statistics
       on the public sector, the Bureau has created the set of criteria
       below. 


       3.11 Types of Government Entities 


       Government services are provided through a complex structure made
       up of numerous public bodies and agencies.  The Census Bureau
       identified over 83,000 governments during the 1987 Census of
       Governments.  In addition to the Federal Government and the 50
       state governments, the Bureau recognizes five basic types of
       local governments, as follows (their number in 1987): 

       - County Governments (3,042), which exist in part in all states
         but Connecticut and Rhode Island and in the District of
         Columbia, are created to provide general government activities
         in specified geographic areas.  It includes those entities
         called boroughs in Alaska, parishes in Louisiana, and counties
         in all other states. 
        
       - Municipal Governments (19,200), which are established to
         provide general government services for a specific population
         concentration in a defined area.  It includes cities, boroughs
         (except in Alaska), villages, and towns (except in the six New
         England states, Minnesota, New York and Wisconsin).  Composite
         city-county governments are treated as municipal governments
         for Census Bureau purposes. 
        
       - Township Governments (16,691), which are established to provide
         general government services for areas without regard to
         population concentrations.  It includes towns in the six New
         England states, Minnesota, New York and Wisconsin, and
         townships in eleven other states. 

       - Special District Governments (29,532), which are established to
         provide only one or a limited number of designated functions
         and having sufficient administrative and fiscal autonomy to
         qualify as independent governments. 

       - School District Governments (14,721), which are created to
         provide public elementary, secondary and/or higher education
         and having sufficient administrative and fiscal autonomy to
         qualify as independent governments.  It excludes school systems
         that are "dependent" on a county, municipal, township, or state
         government.


       3.12 Definition of a Government Entity1 


       In summary, a government entity is defined for Census Bureau
       reporting as follows: 
         
          A government is an organized entity which, in addition to
          having governmental character, has sufficient discretion in
          the management of its own affairs to distinguish it as
          separate from the administrative structure of any other
          governmental unit. 
        
       Thus, to be regarded as a government for Census Bureau purposes,
       an entity must possess all three of these critical attributes:
       existence as an organized entity, governmental character, and
       substantial autonomy.  Each is explained below. 

       Existence as an Organized Entity: 

         Evidence of this attribute is provided by the presence of some
         form of organization and the possession of some corporate
         powers, such as perpetual succession, the right to sue and be
         sued, have a name, make contracts, acquire and dispose of
         property, and the like. 

         Designation of a class of governments in law as "municipal
         corporations," "public corporations," "bodies corporate and
         public," and the like indicates that such units are organized
         entities.  On the other hand, some entities not stated
         specifically by law as corporations do have sufficient powers
         to be recognized as governments. 

         Obviously, the mere right to exist is not sufficient.  Where a
         former government has ceased to operate--i.e., receives no
         revenue, conducts no activities, and has no current officers--
         it is not recognized as an active government. 

       Governmental Character: 

         This characteristic is indicated where officers of the entity
         are popularly elected or are appointed by public officials.  A
         high degree of responsibility to the public, demonstrated by
         requirements for public reporting or for accessibility of
         records to public inspection, is also taken as critical
         evidence of governmental character. 

         Governmental character is attributed to any entities having
         power to levy property taxes, power to issue debt paying
         interest exempt from Federal taxation, or responsibility for
         performing a function commonly regarded as governmental in
         nature.  A lack of these attributes or of evidence about them,
         however, does not preclude a class of units from being
         recognized as having governmental character, if it meets the
         indicated requirements as to officers or public accountability.
         Thus, some special district governments with no taxing powers
         provide electric power or other public utility services that
         are also widely rendered privately; they may be recognized as
         local governments because of provisions as to their
         administration and public accountability. 

       Substantial Autonomy: 

         This requirement is met where, subject to statutory limitations
         and any supervision of local governments by the state, an
         entity has considerable fiscal and administrative independence. 
         Fiscal independence generally derives from power of the entity
         to determine its budget without review and detailed
         modification by other local officials or governments, to
         determine taxes to be levied for its support, to fix and
         collect charges for its services, or to issue debt without
         review by another local government. 

         Administrative independence is related closely to the basis for
         selecting the governing body of the entity.  Accordingly, a
         public agency is recognized as an independent government if it
         has independent fiscal powers and in addition (1) has a
         popularly elected governing body; (2) has a governing body
         representing two or more state or local governments; or (3)
         even in the event its governing body is appointed, performs
         functions that are essentially different from those of, and are
         not subject to specification by, its creating government. 

         Conversely, separate existence is not attributed to entities
         which lack either fiscal or administrative independence.  Some
         local government agencies having considerable fiscal autonomy
         are classified as dependent agencies of another government
         rather than as governments because one or more of the following
         characteristics is present: 

         (1) Control of the agency by a board composed wholly or mainly
             of parent government officials. 

         (2) Control by the agency over facilities that supplement,
             serve, or take the place of facilities ordinarily provided
             by the creating government.

         (3) Provision that agency properties and responsibilities
             revert to the creating government after agency debt has
             been repaid. 

         (4) Requirements for approval of agency plans by the creating
             government. 

         (5) Legislative or executive specification by the parent
             government as to the location and type of facilities the
             agency is to construct and maintain. 

         (6) Dependence of an agency for all or a substantial part of
             its revenues on appropriations or allocations made at the
             discretion of another state or local government. 

         (7) Provision for the review and the detailed modification of
             agency budgets by another local government.  County review
             of agency budgets in connection with statutory limitations
             on tax rates, however, is not, by itself, sufficient to
             establish lack of fiscal autonomy. 

       Other Factors: 

       Applying the above criteria usually involves little difficulty in
       many instances, but the variety of provisions regarding local
       government entities and particularly some of the resultant
       shadings of autonomy leave the classification of some types of
       entities subject to considerable judgment.  In such cases, the
       Census Bureau has taken account of (a) local attitudes as to
       whether the type of unit involved is independent or not, and (b)
       the effect of the decision upon collection and presentation of
       statistics on government finances and employment. 











       Noncritical Characteristics: 

       In addition to the essential characteristics above, there are
       other common attributes that are not essential for the
       identification of governments.  Among them are geographic area,
       population, taxing power, and internal uniformity of taxation and
       services. 

       Most but not all governments serve and operate primarily within a
       specific geographic area for which a population can be
       determined.  Some entities having all essential characteristics
       of local governments, however, do not possess this attribute, but
       at best can be associated only with an area unrelated to specific
       population concentration (e.g., a special district for toll road
       and bridge facilities).  Even those governments which can be
       directly associated with a defined territory for certain
       purposes, such as property taxation, often own and operate
       facilities or provide services on one basis or another to
       residents of adjoining territory. 
       
       Although most governments have the authority to levy taxes, this
       power is not an essential attribute.  Even those governments that
       have property taxing powers and serve a precisely determined area
       do not always provide a single level of taxation and services
       throughout the area concerned.  Differential taxation often
       occurs legally where annexation or other boundary changes place a
       burden of debt service on part but not all the territory.
       Moreover, subordinate "districts" are sometimes provided for,
       with regard to particular types of improvements or government
       services, resulting in differences of tax level within the total
       area served by the government. 


       3.13 Dependent Agencies Checklists 


       The Census Bureau's definition of a government entity, therefore,
       includes not only the central government but also agencies that
       are "dependent" on the government, using the criteria above. 

       The determination of an agency's dependence or independence for
       Census Bureau purposes is not made on an ad hoc basis, however.
       Rather, a separate unit within Governments Division identifies
       and classifies the agencies that are dependent on a government.
       For state and large local governments, these findings are
       reported in "Checklists of Dependent Agencies for Government
       Divisions Surveys." Compilers of finance and employment data use
       these checklists to assign agencies to their proper government. 

        
       3.14 Parent Government Concept 


       One by-product of this broad definition of a government entity is
       the concept of the parent government.  Governments operate using
       a wide variety of organizational units to fulfill their duties.
       The core of the government to which these organizations are
       attached (as defined above) is often referred to as the "parent"
       government.  Thus, a dependent agency or school often is
       described in terms of the relationship to its parent government. 
       3.15 Joint Activities of Governments 


       Governments sometimes cooperate to carry out specific projects or
       activities--e.g., city-county health departments or hospitals,
       joint bridge authorities, joint interstate agencies, consortia,
       and councils of government. 
        
       The participating units may carry out this joint activity in
       various ways, each of which affects the reporting of finance and
       employment statistics for the participating governments: 

       (1) They may establish an independent special district to carry
           out the activity, in which case the related finances and
           employment are assigned to that government unit.  Their
           financial transactions with the special district are treated
           as intergovernmental revenue and expenditure. 

       (2) One of the governments may be solely responsible for
           administering the activity but the other governments share
           its financial support.  In such situations, all its
           activities are assigned to the administering government with
           the other governments' shares being reported as
           intergovernmental transactions. 

       (3) The participating governments may create a separate
           organizational body that is neither independent nor dependent
           on any one member but is jointly administered by all of them.
           These types of joint activities provide special problems in a
           classification system whose focus is the individual
           government entity.  Such joint activities, therefore, are
           classified on the basis of the circumstances involved in each
           case.  In general, the treatment of these joint activities
           depend on their magnitude: 

            - A joint inter-local agency having substantial financial
              activity or employment or which issues substantial debt
              which is not in the name of any of the participating
              governments is assigned for Census Bureau purposes as a
              dependent agency of one of the participating governments.
              Its activities are classified in the same manner as the
              second case cited above. 

            - A joint inter-local agency not having substantial
              financial activity or employment is allocated to each of
              the participating governments to the extent of their
              respective participation, as follows: 

                o Revenue of each parent government should include any
                  taxes or other receipts it collects to turn over to
                  the joint agency or activity. 

                o Borrowing and debt of each parent government should
                  include any debt it issues or guarantees on behalf of
                  the joint agency or activity. 

                o Direct expenditure of each parent should include any
                  amount it pays (e.g., for salaries and other expenses)
                  on account of, and any contributions it makes directly
                  to, a joint agency or activity.  Such amounts are
                  classified according to the function involved and as
                  appropriately as possible by character and object. 

                o Parent government data should exclude any revenue or
                  expenditure of the joint agency or activity, as such,
                  and any joint agency debt not issued in the name of,
                  or guaranteed by, the parent government. 

                o Employees and employee payrolls of joint agencies
                  should be reported as part of the government which
                  issues employee paychecks or, if the joint agency
                  issues paychecks, allocated to the sponsoring
                  governments on the basis of their financial
                  contribution to the "joint" activity. 
        

       3.2 The Four Sectors of Government Activities 


       Since the early 1950's, government activities have been
       categorized into four mutually exclusive sectors: general
       government, utilities, liquor stores, and insurance trust
       systems.  Not all of these four sectors, however, apply to every
       type of data the Bureau collects, as depicted by the chart below: 
        

                                                   Liquor    Insurance
        Type of Data      General     Utility      Store       Trust
       --------------     -------     -------     -------   -----------
       FINANCE:

         Revenue.....        X           X           X           X

         Expenditure.        X           X           X           X

         Debt........        X           X          (1)         (1)

         Cash and
          Securities.        X          (1)         (1)          X

       EMPLOYMENT....        X           X           X           -


       "X" means data are collected for that sector and type of data.
       "-" means data are not collected for that sector and type of data.
       (1) Included in data for general government sector.


       3.21 General Government Sector 

        
       The general government sector includes all activities not defined
       in the utilities, liquor stores, or insurance trust sectors.  For
       Census Bureau purposes, government-operated lotteries are
       included in this sector. 





























       3.22 Utilities Sector 


       For Census Bureau reporting of government statistics, this sector
       comprises just four types of governmental activities and no
       others: 

             Water supply                   Gas supply 
             Electric light and power       Public mass transit 

       Such systems must be either owned and operated by a government or
       owned and operated under contract by a private firm where the
       government maintains day-to-day financial oversight. 

       Except for these four types of utilities and the liquor stores
       sector below, all commercial-type activities of a government--
       airports, toll roads and bridges, housing projects, parking
       facilities, port facilities, lotteries, Federal Government
       corporations (e.g., TVA), and the like--are classed in the
       general government sector. 


       3.23 Liquor Stores Sector 


       This sector covers only the liquor store systems owned and
       operated, at present, by seventeen state governments and local
       governments in a few states.  Any associated government
       activities, such as licensing and enforcement of liquor laws and
       collection of liquor taxes, are classified in the general
       government category. 


       3.24 Insurance Trust Sector 


       The insurance trust sector comprises two major groups of systems: 

         o Public employee retirement systems, embracing both contrib-
           utory and noncontributory systems administered by a govern-
           ment for public employees (including employees of other
           governments). 

         o Social insurance systems, including the Federal Government's
           Social Security and Medicare program (OASDHI), veterans' life
           insurance, and railroad retirement; the unemployment compens-
           ation system; and state government workers' compensation and
           miscellaneous insurance trusts.  Note that for Census Bureau
           purposes these types of social insurance systems are not
           applied to local government finances (other than for the
           District of Columbia's unemployment compensation plan). 

       To be categorized as a insurance trust for purposes of Census
       Bureau statistics, a system must meet all five characteristics of
       a social insurance trust described in Section 11.1. 

       The Federal Government administers a number of other insurance
       programs, such as crop and farm mortgage insurance, investment
       guarantees, and home mortgage insurance (e.g., FHA and VA).  For
       Census Bureau purposes, these are reported in the general
       government sector rather than as insurance trusts. 

       Note that the insurance trust category applies only to the
       government actually administering the system.  A government's
       participation in an insurance trust administered either privately
       or by another government is not treated as an insurance trust
       activity of the participating government.  Generally, it would be
       treated as a current operations expenditure for the paying
       activity in the general government, utilities, or liquor stores
       sector. 

       No employment activity is associated with this sector; employees
       involved in administering insurance trust systems are classed in
       the general government sector. 


       3.3 How Census Bureau Statistics Relate to Original Data Sources 


       Federal, state, and local governments issue their own reports and
       financial statements, sometimes in great detail.  The Census
       Bureau often relies on these reports or on the accounting or
       payroll reporting systems that generate them as a major source of
       its statistics2.  Despite the use of the governments' own reports
       or reporting systems, Census Bureau statistics produced from them
       often do not agree with those issued by the governments
       themselves. 

       The major reason for this seeming disparity is one of the major
       purposes of this classification system: to provide finance and
       employment statistics that are consistent for all governments
       surveyed.  Governments differ greatly in their size, activities,
       organization, responsibilities, and the internal methods they use
       to report them.  The financial structure and reporting systems
       devised by governments also differ widely, being designed mainly
       to enforce fidelity and to help officials to plan and administer
       the affairs of the government effectively. 

       Amongst this diversity, the Census Bureau collects statistics
       which must be presented in a consistent and uniform manner for
       all governments covered.  Thus, a government's original data are
       re-categorized within a standard framework based on the common
       nature of particular activities or transactions in order to
       overcome barriers to both useful summation and direct comparisons
       that result from the varied nature of government records and
       reports. 

       Thus, the Bureau often recasts the data extracted from original
       sources in the ways described below. 


       3.31 Federal Government Statistics 


       The primary focus of Census Bureau statistics about governments
       is on state and local governments.  Data for the Federal
       Government are also collected, primarily to provide a total
       picture of government activity in the national economy. 

       The classification system used by the Census Bureau for
       categorizing state and local government activities differs in a
       number of important respects from the classification scheme used
       in the United States Budget (the primary source of Federal
       Government finance data).  Accordingly, it is necessary to recast
       Federal data as presented in this source to produce statistics
       that are consistent with those for state and local governments. 

       This involves (1) grouping individual Federal receipts and
       expenditures for various agencies and appropriations according to
       the functional framework described in Chapter 4 and (2) applying
       certain adjustments to many of those items to derive finance
       amounts consistent with those reported for state and local
       governments.  These adjustments take into account the following
       major differences between the Federal reporting scheme and the
       Census Bureau's classification system. 


           Treatment in Federal           Treatment in Census Bureau
             Reporting System                Classification System
       ------------------------------   --------------------------------
       Government enterprises are       Includes gross revenue and
       reported on net basis--plus      expenditure of government enter-
       or minus--in terms of their      prises (except for loans and
       effect on budget expenditure.    investments).

       Receipts below are offset        Receipts are reported as revenue
       against expenditure, thereby     and added back to expenditure
       reducing total Federal expend-   shown in Federal sources. See
       iture: (a) various enterprises   Sections 7.1 and 8.1 for dis-
       or market-oriented activities;   cusssions of gross receipts and
       (b) interest on loans made by    gross expenditures.
       Federal agencies; (c) sales of
       products or property; (d) other
       reimbursements from non-Federal
       sources (such as from employees
       for quarters and subsistence
       provided).

       Interfund and intragovern-       Excludes all interfund and intra-
       mental transactions are          governmental transfers (see
       included in agency receipts      Section 6.6).
       and expenditures (but excluded
       from budget totals).

       Includes interest on debt that   Interest on debt reported on
       has accrued but not been paid.   actual disbursement basis.

       Net excess of loan disbursement  Loan transactions are excluded.
       or repayment activities of loan
       accounts is added to expendi-
       tures or to receipts in devel-
       oping budget totals.


       3.32 Broad Coverage of Activities 


       As noted in Section 3.1, the Census Bureau applies a broad
       definition of what constitutes a government entity; therefore,
       our statistics are generally more inclusive than those of any
       central report or records of a government.  They include data
       drawn not only from the central records of a government's
       principal finance or payroll offices, but also those of dependent
       educational institutions, semi-autonomous boards, special
       authorities, and the like.

       In particular, Census Bureau statistics on public debt cover debt
       instruments that have been issued by authority of the government
       (with or without its full-faith and credit) which may be omitted
       from the government's own central report or records.  The largest
       category of indebtedness today, Public Debt for Private Purposes,
       includes debt that often is not viewed by the issuing government
       as its own despite the use of its governmental powers to grant
       the debt its critical tax-exempt status.  A government's central
       records or finance reports may also exclude particular revenue or
       expenditure items maintained in separate records but which are
       incorporated into Census Bureau statistics. 
        

       3.33 Treatment of Accounting Funds 


       As described in Chapter 6, governments administer their finances
       through accounting devices called "funds." These funds are
       established to support specific activities or to attain certain
       objectives.  Governments maintain numerous accounting funds and
       issue financial reports designed to reveal the operation and
       status of each fund, individually and on a consolidated basis. 

       Census Bureau finance statistics, in contrast, are organized to
       show information for each government as a single financial
       entity, not to distinguish the activities of any particular
       accounting fund or group of funds.  Government accounting also
       identifies financial transactions that occur between these funds.
       As discussed in Section 6.6, the Bureau generally ignores (or
       "nets out") such transactions to avoid duplication.  Census
       Bureau statistics on functional expenditures for an activity, for
       instance, may summarize outlays from numerous accounting funds
       (except interfund activities).  Even when a government's own
       financial report combines its funds, the basis for doing so may
       differ from that applied by the Bureau. 

       Moreover, the methods the Bureau uses to produce financial
       statistics from these accounting statements cause the data to
       lose their accounting nature completely.  For these reasons,
       users can derive limited information about the fiscal condition
       of the government, such as budget surplus or deficit or the
       operating balance of a fund at the end of the fiscal year. 


       3.34 Terminology and Classification 


       Governments vary in the terms they apply to similar items and
       transactions.  They also differ in the bases used to classify
       activities or transactions for their own records and published
       reports. 

       The Census Bureau applies a uniform terminology and classifi-
       cation system to its data collection.  For instance, a "public
       utilities tax" reported by three state governments may be
       classified for Census Bureau purposes as a gross receipts tax in
       one state, a license tax in a second, and a property tax in the
       third.  Similarly, the term "current operation" may be used by a
       government in a different sense, including intergovernmental
       transactions or cash assistance payments, both of which are
       excluded from the Bureau's definition of current operations.
       Similarly, some governments may define payrolls to include the
       employer share of fringe benefits, which falls outside the scope
       of the Census Bureau definition. 

       In both its finance and employment statistics, the Bureau
       emphasizes the functional nature of activities by combining
       finances and employment from all accounting funds by all agencies
       according to the functional categories described in Chapter 4.
       But governments also vary in how they organize their activities.
       Some governments have departments devoted to a single activity
       (e.g., "highways" or "solid waste management") that directly
       corresponds to a Census Bureau category.  In other cases, an
       agency may be responsible for a wide variety of functions (e.g.,
       "transportation" or "human resources"), requiring the Bureau to
       distribute data on its activities among numerous Census
       categories.  Often, statistics for a Census function may be a
       composite of multiple agencies of a government--e.g., "highways"
       employment may include a highways department, toll road
       authority, and bridge commission. 


       3.35 Reporting Periods 


       Just as the Census Bureau applies standard definitions to its
       classification of government activities, it uses a common
       definition for the reporting periods that the data cover.  In
       some cases, this may also explain disparities between Census and
       a government's own statistics. 
 
       Finance data: Through the fiscal year 1963 finance survey, the
       Bureau collected data for governments' fiscal years that ended in
       a particular calendar year.  Effective with the fiscal 1963-64
       survey, the Bureau began using governments' fiscal years that
       closed within the 12-month period ending on June 30.  Thus, the
       reporting period for fiscal year 1990-91 data includes
       government's fiscal years that ended between July 1, 1990 and
       June 30, 1991.  There are a few exceptions to this rule,
       primarily for the Federal and state governments and the District
       of Columbia (see text to Government Finances report). 

       Dependent agencies of a government do not always share the same
       fiscal year period as their parent government.  In those case,
       data are for the agency's fiscal year that ended within the
       12-month period ending on June 30, which may be earlier or later
       than the parent government's own fiscal year. 

       Employment data: Employment and payroll data are based on the one
       pay period that includes October 12 of the survey year.  The
       payroll data are converted to a one month figure using a
       conversion factor based on the pay period (see Chapter 5 for
       details). 

        
       ----------------------- 
       1 This section is based on Appendix B to the 1987 Census of
         Governments report, Government Organization (Vol. 1, No. 1).

       2 A major trend in the compilation of finance data on govern-
         ments, particularly for state and large city and county
         governments, is the use of internal accounting reports rather
         than published financial statements.  In some cases, these are
         generated specially for the Census Bureau. 

        CHAPTER 4.  FUNCTIONAL CLASSIFICATION OF GOVERNMENT ACTIVITIES 


       Contents and Abstract: 

       4.1 Background 

       4.2 Primary vs Secondary Function 
        4.21 Public Institutions 

       4.3 Data Crossing Functional Lines 

       4.4 Relation to Federal and State Government Programs 

       4.5 Unique Special District Function Codes 

       Table: 
        
         4-1 Cross-Classification of Revenue, Expenditure, and Debt
             Codes by Function 

       Charts: 
        
         4-A Detailed Categories for Reporting Functional Expenditures
             and Employment, by Functional Grouping 
         4-B Detailed Categories for Reporting Functional Expenditures
             and Employment, by Function Code 

       Description Sheets 

        
       Viewed as a group, governments are multi-functional organiza-
       tions, providing a wide range of services to a broad group of
       people.  In recognition of this diversity, the Census Bureau has
       created a detailed classification scheme for reporting government
       activities according to their purpose. 

       To illustrate the functional interrelationship among different
       types of data, Table 4-1 provides a cross-classification of
       revenue, expenditure, and debt codes by function.  Note that not
       every finance code is shown in this table; some codes are not
       functional per se (e.g., taxes and insurance trust data) while
       others are too broad to list (e.g., "all other" codes). 

       Also included in this chapter are two charts providing listings
       of all current function codes.  Chart 4-A arranges these codes
       according to the functional groupings used for publication
       purposes ("Education," "Social Insurance and Income Maintenance,"
       etc.) while Chart 4-B lists them in numerical order (01, 02, 03,
       etc.). 

       Completing this chapter are the Description Sheets that provide
       detailed, one-page definitions of each function, including
       coverage of data collection information. 


       4.1 Background 


       At present, the Census Bureau has identified nearly 70 major
       functions of government, 14 of which are used solely for the
       Federal Government.  Others apply solely to state government data
       while a few pertain only to local government activities.  Each of
       these functions falls into one of the four sectors of government
       described in Chapter 3: General Government, Liquor Stores,
       Utilities, and Insurance Trust.  No function, however, spans
       more than one sector of government. 

       This classification schema is so pervasive that virtually all
       data on governments collected by the Bureau is categorized in
       part along functional lines.  The few activities not classified
       by function are: 

         - Interest on general debt is excluded from functional
           expenditures (but not interest on utility debt, which is
           included in utility expenditures).  Retirement of debt is
           excluded also because it is reported in debt statistics
           rather than expenditure data. 

         - Contributions to insurance trust systems administered by the
           same government are excluded from functional expenditures
           (and reported as insurance trust expenditures when disbursed
           to beneficiaries).  Payments to systems administered by
           another government, on the other hand, are reported in
           functional categories. 

         - Many administrative activities that support others are
           reported either in one of the government administration
           functions (e.g., Financial Administration) or in the Other
           and Unallocable category. 

         - Some activities are too broad or multi-purpose to be included
           in a single-purpose function, such as lump sum contributions
           for employee fringe benefits, economic development, govern-
           ment-wide insurance policies, etc.  These generally are
           classed in Other and Unallocable. 

         - Some items defy being categorized by function, such as taxes
           and most cash and securities data. 


       4.2 Primary vs Secondary Function 


       Government agencies often provide services that encompass more
       than one function.  For instance, airports may have their own
       police force, schools their own libraries, and large correctional
       institutions their own water supply or sewerage systems. 

       In these instances, the Census Bureau categorizes the entire
       activity according to its primary function rather than breaking
       it down into its smaller component or secondary parts.  Using the
       examples cited above, the secondary activities would be classi-
       fied along with their primary function--i.e., air transportation,
       education, and corrections, respectively. 


















































       4.21 Public Institutions 


       Public institutions comprise such facilities as hospitals,
       colleges and universities, adult and juvenile correctional
       facilities, welfare homes, and special schools for the
       handicapped. 

       The functional classification of these institutions for Census
       Bureau purposes is not done on an ad hoc basis, however.  Rather,
       a separate unit within Governments Division identifies and
       categorizes them.  For state and large local governments, these
       findings are reported in "Checklists of Institutions for
       Governments Division Surveys." Compilers of finance and
       employment data use these checklists to assign institutions to
       their proper function. 


       4.3 Data Crossing Functional Lines 


       The boundaries created by this classification system are not so
       rigid that they prevent activities from crossing functional
       lines.  To illustrate, the receipt of Federal aid for medical
       care assistance to the needy (Medicaid) is classified as a public
       welfare intergovernmental revenue.  These money often are spent,
       however, by public hospitals.  By definition, all outlays of a
       public hospital are classified at a hospital function, so the
       transaction necessarily crosses over into the hospital category
       on the expenditure side.  Payments to private vendors for
       medical care, in contrast, remain within the public welfare
       function. 


       4.4 Relation to Federal and State Government Programs 


       These functions, created for general statistical purposes, cannot
       be equated with any specific Federal or state government program.
       They are generally broader than even the most widely-based
       Federal or state programs.  Major Federal and state programs may
       even cross over into more than one Census Bureau function, as
       illustrated above with the Medicaid program. 

       Instead, these functions represent broad activities of govern-
       ments that have remained virtually unchanged for years, thereby
       preserving their usefulness for analytical purposes even while
       specific Federal and state programs expand or contract.


       4.5 Unique Special District Function Codes 


       Some, but not all, of the functional categories described in this
       chapter are used to classify not only government finances and
       employment, but also government organization.  In conjunction
       with the regular function codes, the organization phase employs a
       set of function codes expressly for special district governments.
       These codes are limited to the organization area because, even
       though numerous special districts may exist for them (e.g., the
       1,600 cemetery districts classified during the 1987 Census of
       Governments), their finances or employment are too small, they
       are concentrated in just a few states, or their activities are
       too narrow. 

       Finance and employment data for special district organization
       codes are converted into the regular functions for reporting
       purposes, as shown by the table below. 

       Organization
         Function                                              Regular
          Code                     Name                         Code*
       ------------ ----------------------------------------- ---------
       Single-Function Districts:

           01       Air Transportation (Airports)............    01
           02#      Cemeteries...............................    89
           09#      Education (School Building Authorities)..    12
           24       Fire Protection..........................    24
           32       Health...................................    32
           40#      Hospitals................................    36
           41#      Industrial Development...................    89
           42#      Mortgage Credit..........................    89
           44       Highways (Regular or Toll)...............    44
           50       Housing and Community Development........    50
           51#      Drainage.................................    59
           52       Libraries................................    52
           59       Other Natural Resources..................    59
           60       Parking Facilities.......................    60
           61       Parks and Recreation.....................    61
           63#      Flood Control............................    59
           64#      Irrigation...............................    59
           79       Public Welfare Institutions..............    79
           80       Sewerage.................................    80
           81       Solid Waste Management...................    81
           86#      Reclamation..............................    59
           87       Water Transport and Terminals............    87
           88#      Soil and Water Conservation..............    59
           89       Other Single-Function Districts..........    89
           91       Water Supply Utility.....................    91
           92       Electric Power Utility...................    92
           93       Gas Supply Utility.......................    93
           94       Mass Transit System Utility..............    94

       Multiple-Function Districts:

           96#      Fire Protection and Water Supply.........   24/91
           97#      Natural Resources and Water Supply.......   59/91
           98#      Sewerage and Water Supply................   80/91
           99#      Other Multi-Function Districts...........  Various

       * Applies mainly to employment and expenditure data.  Revenue and
         debt data may use different classification.  Multiple-function
         special districts are sent questionnaires to report finance and
         employment data by major function. 

       # Code unique to organization survey; finance and employment data
         subsumed into regular function code as shown in table above. 


         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 01            NAME: Air Transportation (Airports)

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Transportation


          DEFINITION: Provision, operation, construction, and support of airport
                      facilities serving the public-at-large on a scheduled or
                      unscheduled basis; and the regulation of the airline industry.


            EXAMPLES: Publicly-operated airfields and related facilities (runways,
                      terminals, control towers, maintenance facilities, and the like);
                      intergovernmental payments for construction, operation, or
                      support of publicly-owned airports; support of private airports;
                      Federal Aviation Administration (FAA); airport police if either
                      an integral part of the airport authority or a payment to
                      regular police agency (see Other Notes below).


          EXCLUSIONS: Purchase and operation of government-owned aircraft--e.g.,
                      police helicopters (report at function involved); state civil
                      air patrol or militia (report at Other and Unallocable, code 89).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) Includes publicly-owned airports even if no scheduled
                      airlines service it or if its clientele consists of private
                      pilots and aircraft.  (2) For leased facilities include govern-
                      ment's expenditures and employees and exclude the lessees'
                      expenditures and contractual employment.  (3) Report payments
                      by an airport authority to a regular police department of the
                      same government at E01 and deduct an equal amount from Police
                      Protection, code E62.  The rationale for this procedure is that
                      the primary function involved is air transportation.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E01 Current operations........   .       .     .    .       .       .
           I01 Assistance and subsidies..   .       N     N    N       N       N
           F01 Construction..............   .       .     .    .       .       .
           G01 Land & existing structures   .       .     .    .       .       .
           K01 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L01 State.....................   .       N     N    .       .       .
           M01 Locals, NEC...............   .       .     .    .       .       .
           N01 General purpose locals....   N       .     N    N       N       N
           R01 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            01(0)-6/92 

         ------------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ------------------------------------------------------------------------------- 
    
         FUNCTION CODE: 02            NAME: Space Research and Technology (Federal only)

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Selected Federal Programs



          DEFINITION: Federal Government activities for research, development,
                      applications, and support in the areas of aeronautics and
                      space transportation, sciences, and technology.



            EXAMPLES: Comprises activities of the National Aeronautics and Space
                      Administration (NASA) except payments to public and private
                      universities for scientific research.



          EXCLUSIONS: Department of Defense research and other activities related
                      to missiles, satellites, space weapons, etc. (report at
                      National Defense and International Relations, code 06); NASA
                      payments to public and private universities for scientific
                      research (report at Other Education, code 21).



          REFERENCES: <To be added later.>



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
     
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E02 Current operations........   .       N     N    N       N       N
           I02 Assistance and subsidies..   .       N     N    N       N       N
           F02 Construction..............   .       N     N    N       N       N
           G02 Land & existing structures   .       N     N    N       N       N
           K02 Equipment.................   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L02 State.....................   .       N     N    N       N       N
           M02 Locals, NEC...............   .       N     N    N       N       N

          EMPLOYMENT DATA................   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.









                                                                            02(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 03            NAME: Miscellaneous Commercial Activities, NEC

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: General Government, NEC


          DEFINITION: Provision and operation of publicly-owned commercial facilities
                      not classified under particular functions or utilities.


            EXAMPLES: Markets; cemeteries; New Orleans public belt railroad and
                      passenger terminal; the Bank of North Dakota; North Dakota
                      Mill and Elevator Association; cement plants; hail and
                      disaster insurance systems; the Alaska Railroad; and the like.


          EXCLUSIONS: Public utilities (use Utilities codes 91-94); sewerage systems
                      (report at Sewerage, code 80); public hospitals (report at
                      Own Hospitals, code 36); parks and recreational facilities (use
                      code 61); dormitories, cafeterias, bookstores, and other
                      auxiliary enterprises connected with institutions of higher
                      education (for state governments, use code 16 and for local
                      governments, use code 18); nursing homes (report at Public
                      Welfare, codes 77/79); public airports (use code 01); and other
                      commercial-type activities classifiable in particular functions.


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) This function includes direct expenditures only--report
                      any intergovernmental outlays and all employment data at Other
                      and Unallocable, code 89.  (2) Effective with 1977 data, state
                      government utility expenditures were removed from this category
                      and reclassified at the Utility functions.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E03 Current operations........   N       .     .    .       .       N
           F03 Construction..............   N       .     .    .       .       N
           G03 Land & existing structures   N       .     .    .       .       N
           K03 Equipment.................   N       .     .    .       N       N


          * Shows whether data are collected () or not collected (N) for that type.








                                                                            03(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 04            NAME: Correctional Institutions

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Public Safety
                                   Corrections

          DEFINITION: Residential institutions or facilities for the confinement,
                      correction, and rehabilitation of convicted adults or juveniles
                      adjudicated delinquent or in need of supervision, and for the
                      detention of adults and juveniles charged with a crime and
                      awaiting trial.

            EXAMPLES: Prisons; reformatories; jails; houses of corrections; penitent-
                      iaries; correctional farms; workhouses; reception centers;
                      diagnostic centers; industrial schools; training schools; deten-
                      tion centers; multi-institutional programs and administration;
                      education, training, and health care programs devoted to inmates
                      even if recorded under an administrative unit of a corrections
                      agency; hospitals for the criminally insane IF operated by a
                      corrections agency; and these types of facilities IF residential:
                      work release units, halfway houses, and community corrections
                      centers.  For prison industries include only amounts involved in
                      the manufacture, sale, and distribution of articles or services
                      for resale or use outside the government involved.

          EXCLUSIONS: Payments to other governments for care of prisoners (report at
                      Other Corrections, code 05); police "lockups" or jails holding
                      people awaiting arraignment (report at Police Protection, code
                      62); nonresidential facilities (use code 05); any identifiable
                      costs of products or allocable value of prison labor used by
                      other agencies of same government (report at function involved);
                      hospitals for criminally insane operated by mental health or
                      hospital agency (report at Own Hospital, code 36).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) This function applies solely to Federal and state government
                      expenditures; report any related local expenditures and all
                      employment data at Other Corrections, code 05.  (2) Include
                      only facilities operated by the government concerned.
                      (3) Previous definitions said to exclude jails holding persons
                      awaiting trial or serving short-term sentences and to report
                      them as a police protection activity.  The definition stated
                      here is not a revision but recognition that those very types of
                      facilities are the primary function of local jails and have
                      always been classified as a correctional activity.  (4) Refer to
                      dependent agency checklists for state government institutions
                      included in this function.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E04 Current operations........   .       .     N    N       N       N
           I04 Assistance and subsidies..   .       N     N    N       N       N
           F04 Construction..............   .       .     N    N       N       N
           G04 Land & existing structures   .       .     N    N       N       N
           K04 Equipment.................   .       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            04(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 05            NAME: Other Corrections

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Public Safety
                                   Corrections

          DEFINITION: Correctional activities other than Federal and state residential
                      institutions or facilities described under Correctional Institu-
                      tions, local government correctional activities (residential or
                      other), and intergovernmental expenditure for corrections.

            EXAMPLES: Probation offices, whether operated by courts or correctional
                      agencies, boards of parole, boards of pardon, and the like;
                      noninstitutional activities such as administration of a
                      correctional agency, training of correctional employees, and
                      nonresidential halfway houses and community corrections centers.
                      For local governments includes residential facilities described
                      under Correctional Institutions, code 04.

          EXCLUSIONS: Supervision of individual Federal or state correctional
                      institutions (use code 04); Federal and state programs strictly
                      devoted to inmates of its institutions (training, education,
                      rehabilitation, health care, etc.) even if recorded under an
                      administrative unit of a corrections agency--e.g., Director's
                      Office (use code 04).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Report all employment data for both institutional and other
                      corrections here.  (2) Exercise care when recording Federal or
                      state construction expenditures for corrections reported under
                      an administrative unit (e.g., Director's Office, Division of
                      Planning).  Construction outlays for noninstitutional activities
                      are generally quite small; thus, such amounts should often be
                      classified at Correctional Institutions, code 04, instead of
                      Other Corrections.  (3) Refer to dependent agency checklists for
                      large city and county government institutions included in this
                      function.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                           General Purpose Governments             

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E05 Current operations........   .       .     .    .       .       N
           F05 Construction..............   .       .     .    .       .       N
           G05 Land & existing structures   .       .     .    .       .       N
           K05 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 

           L05 State.....................   .       N     N    .       .       N
           M05 Locals, NEC...............   .       .     .    .       .       N
           N05 General purpose locals....   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            05(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 06          NAME: National Defense and International Relations

         SECTOR: General            APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Selected Federal Programs

          DEFINITION: Federal Government activities to protect the United States and its
                      allies from foreign aggression, to maintain military capabilities
                      for deterring war, to protect and advance its interests in inter-
                      national affairs, and to provide military, economic, and humani-
                      tarian aid to other nations.

            EXAMPLES: Comprises primarily the Departments of Defense, Energy (part),
                      and State as well as such agencies as U.S. Information Agency,
                      Agency for International Development (AID), Peace Corps, Export-
                      Import Bank, and International Monetary Fund.  Activities covered
                      include the military services, National Guard and Reserves forces,
                      intelligence agencies, military procurement, defense research and
                      evaluation, military housing, and selective service system;
                      outlays of the Military Retirement Fund; conduct of diplomatic
                      and consular relations, payments to international organizations
                      like the United Nations, and international communication, education,
                      and cultural activities; military assistance; foreign aid for
                      economic support, functional development, and humanitarian assis-
                      tance; Food for Peace (PL 480 Food Aid) and Foreign Agriculture
                      Service; atomic energy defense research, development, and production.

          EXCLUSIONS: Military and economic loans to other countries (except "forgiven
                      loans"); Soldiers' and Airmen's Home (report at Other Public Welfare,
                      code 79); payments to states for defense activities (report at Other
                      and Unallocable, code 89); tuition payments for training (report at
                      Other Education, code 21); Army Corps of Engineers (allocate
                      among codes 57,87, and 89); Department of Energy other than atomic
                      defense activities (report balance at Soil, Water, and Electric
                      Energy Resources, code 57); state-local militia, civil air patrol,
                      civil defense, and other defense-related activities (use code 89).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) This function applies solely to the Federal Government; report
                      any related state or local government activities at code 89.
                      (2) Report military service academies, such as West Point, here
                      rather than at Education.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E06 Current operations........   .       N     N    N       N       N
           I06 Assistance and subsidies..   .       N     N    N       N       N
           F06 Construction..............   .       N     N    N       N       N
           G06 Land & existing structures   .       N     N    N       N       N
           K06 Equipment.................   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L06 State.....................   .       N     N    N       N       N
           M06 Locals, NEC...............   .       N     N    N       N       N

          EMPLOYMENT DATA................   .       N     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            06(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 12            NAME: Elementary and Secondary Education

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Education Services
                                   Education

          DEFINITION: Operation, maintenance, and construction of public schools and
                      facilities for elementary and secondary education (kindergarten
                      through high school), vocational-technical education, and other
                      educational institutions except those for higher education,
                      whether operated by independent governments (school districts)
                      or as integral agencies of state, county, municipal, or township
                      governments; and financial support of public elementary and
                      secondary schools.

            EXAMPLES: Instructional, support, and auxiliary services operated through
                      school systems (school lunch, student activities, community
                      services, pupil transportation, health services, guidance
                      counseling, and the like); administration and supervision of
                      school systems; special education, classes for the handicapped,
                      and vocational education provided through school systems;
                      libraries operated by public schools; and plant maintenance and
                      operation.  For state governments, includes payments in support
                      of local school systems as well as direct expenditures on their
                      behalf (e.g., for construction of school buildings, purchase of
                      textbooks and other instructional materials, acquisition and
                      operation of school buses, and other local school activities).

          EXCLUSIONS: Institutions of higher education (use codes 16 and 18); schools
                      for the blind, deaf, or handicapped (if primarily for training
                      and education, report at Other Education, code 21; if primarily
                      for physical rehabilitation and care, report at Hospitals, codes
                      36/38); state aid to private schools (report at Educational
                      Assistance and Subsidies, code 19); state adult, vocational, and
                      special education programs operated outside school systems (use
                      code 21).  For state governments also exclude administrative
                      expenses of school building agencies and supervision of local
                      public and private elementary-secondary education (use code 21).
                 
          REFERENCES: <To be added later.>

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E12 Current operations........   N       .     .    .       .       .
           F12 Construction..............   N       .     .    .       .       .
           G12 Land & existing structures   N       .     .    .       .       .
           K12 Equipment.................   N       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L12 State.....................   N       N     N    .       .       N
           M12 Locals, NEC...............   N       .     .    .       .       .
           N12 General purpose locals....   N       .     N    N       N       N
           Q12 School districts..........   N       .     N    N       N       N
           R12 Special districts.........   N       .     N    N       N       N
                                                                                
          EMPLOYMENT DATA................   N       .     .    .       .       .   

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            12(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 14            NAME: Postal Service (Federal only)

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Selected Federal Programs



          DEFINITION: Activities of the U.S. Postal Services (USPS).



            EXAMPLES: Includes all postal activities on a gross reported basis
                      (i.e., without deducting postal fees and charges).



          EXCLUSIONS: Subsidies to airlines (report at Air Transportation, code
                      01).



          REFERENCES: <To be added later.>



         OTHER NOTES: The former cabinet-level Post Office Department became an
                      independent Federal corporation and renamed the U.S. Postal
                      Service on July 1, 1971 as a result of the Postal Reorgani-
                      zation Act of 1970 (P.L. 91-375).



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
     
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E14 Current operations........   .       N     N    N       N       N
           I14 Assistance and subsidies..   .       N     N    N       N       N
           F14 Construction..............   .       N     N    N       N       N
           G14 Land & existing structures   .       N     N    N       N       N
           K14 Equipment.................   .       N     N    N       N       N

          EMPLOYMENT DATA................   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.












                                                                            14(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         -----------------------------------------------------------------------------
          
         FUNCTION CODE: 16            NAME: Higher Education Auxiliary Enterprises

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Education Services
                                   Education
                                     Institutions of Higher Education


          DEFINITION: Activities and facilities connected with a state institution of
                      higher education providing supplementary services to students,
                      faculty or staff, and which are self-supported (wholly or
                      largely through charges for services) and operated on a
                      commercial basis.


            EXAMPLES: Dormitories; cafeterias; bookstores; athletic facilities,
                      contests, or events; student activities; lunch rooms; student
                      health services; college unions; college stores, barber shops,
                      and the like.


          EXCLUSIONS: Hospitals operated by medical schools (report at Own Hospitals,
                      code 36); agricultural extension services (report at Other
                      Agriculture, code 54).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) Report expenditures on a gross basis without deduction for
                      related revenue from charges.  (2) Report any employment data
                      related to these activities at Other Higher Education, code 18.
                      (3) This function applies solely to state governments; report
                      auxiliary enterprises associated with local institutions of
                      higher education at code 18.  (4) Refer to dependent agency
                      checklists for state government institutions included in function
                      codes 16 and 18.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E16 Current operations........   N       .     N    N       N       N
           F16 Construction..............   N       .     N    N       N       N
           G16 Land & existing structures   N       .     N    N       N       N
           K16 Equipment.................   N       .     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.






                                                                            16(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 18            NAME: Other Higher Education

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Education Services
                                   Education
                                     Institutions of Higher Education

          DEFINITION: Degree-granting institutions (associate, bachelor, master, or
                      doctorate) operated by state or local governments which provide
                      academic training beyond the high school (grade 12) level,
                      other than for state-operated auxiliary enterprises.

            EXAMPLES: Junior colleges; community colleges; universities; law schools;
                      medical and nursing schools; agricultural colleges; land grant
                      institutions; engineering schools; and other institutions
                      granting postsecondary degrees.  Includes all related activities
                      for instruction, research, public service (except agricultural
                      extension services), academic support, libraries, student
                      services (other than state self-supporting enterprises),
                      administration, and plant maintenance.

          EXCLUSIONS: Dormitories, bookstores, cafeterias, and other commercial-
                      type services of state institutions (report at Auxiliary
                      Enterprises, code 16); training academies or programs which
                      do not confer college-level degrees (e.g., police academies);
                      state vocational-technical schools which award certificates
                      equal to less than 2-years of college (report at Other
                      Education, code 21); hospitals for general public operated by
                      universities (report at Own Hospitals, code 36); agricultural
                      experiment stations, farms, and extension services (report at
                      Natural Resources, codes 54/59); state scholarships and
                      fellowships awarded to students (report at Educational
                      Assistance and Subsidies, code 19); state aid to or in support
                      of private colleges (use code 19); state administration of
                      school building authorities (use code 21); Federal military
                      academies such as West Point (report at National Defense and
                      International Relations, code 06).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Finance data for both codes 16 and 18 are obtained largely
                      through the Integrated Postsecondary Education Data Survey
                      (IPEDS) conducted by the US Department of Education in
                      agreement with the Census Bureau.  (2) Report employment data
                      for the instructional staff only of university hospitals and
                      agricultural experiment stations here.  (3) Refer to dependent
                      agency checklists for state and large city and county government
                      institutions included in function codes 16 and 18.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E18 Current operations........   N       .     .    .       .       N
           F18 Construction..............   N       .     .    .       .       N
           G18 Land & existing structures   N       .     .    .       .       N
           K18 Equipment.................   N       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L18 State.....................   N       N     N    .       .       N
           M18 Locals, NEC...............   N       .     .    .       .       N
           N18 General purpose locals....   N       .     N    N       N       N
           Q18 School districts..........   N       .     N    N       N       N
           R18 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   N       .     .    .       .       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            18(0)-6/92 
          76!!!!

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 19            NAME: Assistance and Subsidies (Education)

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Education Services
                                   Education


          DEFINITION: State government direct cash payments to individuals for tuition,
                      scholarships, and other financial aid to meet educational
                      expenses (other than loans), whether based on academic merit,
                      financial need, athletic ability, or educational disadvantage;
                      and direct cash subsidies to private schools and colleges.


            EXAMPLES: Scholarships (including those for specific areas of study, such
                      as medicine or dentistry); fellowships; tuition or fee aid,
                      credits, waivers, remissions, etc.; payments under Federal aid
                      programs, such as State Student Incentive Grants (SSIG), and
                      Supplemental Educational Opportunity Grants (SEOG); outright
                      grants; trainee stipends; student prizes; state veterans
                      educational opportunity grants; financial aid to private or
                      parochial schools and colleges.


          EXCLUSIONS: Pell Grants passed through state institutions (treat as direct
                      Federal aid to student--i.e., as an agency transaction); student
                      loan programs; college work-study awards or other payments under
                      programs where recipient must provide services to the educational
                      institution, such as teaching undergraduate students (report at
                      Other Higher Education, code 18); Federal Government education
                      benefits to veterans, former military personnel, or eligible
                      dependents (report at Veterans' Education Benefits, code 20).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) This function applies solely to state governments; report
                      any Federal cash assistance payments at either Veterans'
                      Education Benefits, code I20, or Other Education, code I21, and
                      any related local cash assistance payments at Other Higher
                      Education, code E18.  (2) Data on direct cash payments made by
                      institutions themselves are collected through the Integrated
                      Postsecondary Education Data Survey (IPEDS); data on direct
                      cash payments made by other agencies (e.g., state scholarship
                      commissions or boards of higher education) are obtained from
                      other sources.  (3) Report any employment data related to
                      these payments at code 21.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E19 Assistance and Subsidies..   N       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            19(0)-6/92 

         ------------------------------------------------------------------------------ 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ------------------------------------------------------------------------------ 
         FUNCTION CODE: 20            NAME: Veterans' Education Benefits (Federal only)

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Education Services
                                   Education


          DEFINITION: Federal Government direct payments to or on behalf of veterans,
                      former military personnel, and their eligible dependents for
                      education and training purposes and intergovernmental aid in
                      support of state and local government veterans educational
                      benefits programs.


            EXAMPLES: Veterans readjustment benefits for education and training;
                      educational assistance under various "GI Bills"; All Volunteer
                      Force education benefits; Post-Vietnam Era Education Program
                      payments.


          EXCLUSIONS: Loans to veterans for education and training (nonexpenditures);
                      distribution of funds from the Post-Vietnam Era Veterans
                      Education Trust Fund which represents repayments of voluntary
                      contributions by eligible military personnel during their
                      service (report at Other Education, code 21); tuition payments
                      for training by Department of Defense for active personnel
                      (use code 21).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) The benefit programs cited above are administered by the
                      U.S. Department of Veterans Affairs although some are funded by
                      the Department of Defense.  (2) This function applies solely to
                      the Federal Government; report any state government direct
                      cash payments to veterans for tuition, scholarships, or other
                      educational assistance at Educational Assistance and Subsidies,
                      code 19, and any such local government assistance at Other Higher
                      Education, code 18.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E20 Current operations........   .       N     N    N       N       N
           I20 Assistance and subsidies..   .       N     N    N       N       N
           F20 Construction..............   .       N     N    N       N       N
           G20 Land & existing structures   .       N     N    N       N       N
           K20 Equipment.................   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L20 State.....................   .       N     N    N       N       N
           M20 Locals, NEC...............   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.


                                                                            20(0)-6/92 

         ---------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 21            NAME: Other Education

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Education Services
                                   Education

          DEFINITION: State government special programs and institutions primarily for
                      training and education (rather than care) of the blind, deaf,
                      or other handicapped; programs for adult, vocational, or special
                      education that operate outside school systems; and educational
                      activities not assignable to other education functions.

            EXAMPLES: State schools for the blind, visually impaired, deaf, or other
                      handicapped; adult education and vocational rehabilitation and
                      education not provided by school systems; technical or voca-
                      tional-technical schools which award certificates equal to less
                      than two years of college; overall supervision of and general
                      services to local elementary and secondary schools, public or
                      private; administration of state education activities; costs
                      not allocable between elementary-secondary and higher education,
                      such as paying fringe benefit costs of employees of local
                      schools and state colleges; administration of state school
                      building authorities.

          EXCLUSIONS: Institutions for blind, deaf, or other handicapped that are
                      primarily for physical rehabilitation and care (report at
                      Hospitals, code 36/38); direct payments on behalf of local
                      schools, such as for textbooks, purchase of buses, and
                      construction of school buildings (report at Elementary and
                      Secondary Education, code 12); state intergovernmental aid to
                      support local school districts or dependent public school
                      systems (use code 12); administration of state institutions of
                      higher education (report at Other Higher Education, code 18).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) This function applies only to Federal and state governments
                      and to special district government employment.  For the Federal
                      Government, it represents all education expenditures except vet-
                      erans' benefits (code 20).  (2) Report any related local data at
                      either code 12 or 18.  (3) Refer to dependent agency checklists
                      for state government institutions included in this function.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E21 Current operations........   .       .     N    N       N       N
           I21 Assistance and subsidies..   .       N     N    N       N       N
           F21 Construction..............   .       .     N    N       N       N
           G21 Land & existing structures   .       .     N    N       N       N
           K21 Equipment.................   .       .     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L21 State.....................   .       N     N    N       N       N
           M21 Locals, NEC...............   .       .     .    N       N       N
           N21 General purpose locals....   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     N    N       N       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            21(0)-6/92  
         69 !!!!!

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 22            NAME: Social Insurance Administration

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance

          DEFINITION: Administration of unemployment compensation systems, public
                      employment services, and the Federal Social Security, Medicare,
                      and Railroad Retirement trusts.

            EXAMPLES: Unemployment compensation, unemployment insurance, and equivalent
                      agencies involved in administering the cooperative Federal-state
                      unemployment compensation system; associated public employment,
                      job services, employment services, and other agencies providing
                      job placement, counseling, veterans readjustment allowances, or
                      related services; and determination of eligibility for disability
                      benefits under Federal Social Security (Old-Age and Survivors
                      Insurance and Disability Insurance) and Medicare (Hospital Insur-
                      ance and Supplementary Medical Insurance).  For the Federal Gov-
                      ernment also includes administration of Social Security, Medi-
                      care, and Railroad Unemployment and Retirement programs; and
                      payments to state governments for administering unemployment
                      compensation, job services, and disability determination programs.

          EXCLUSIONS: Benefits paid under these programs (report at appropriate
                      insurance trust code); administration of public employee
                      retirement, workers' compensation, or miscellaneous insurance
                      trusts (report at Financial Administration, code 23); adminis-
                      tration of Federal Supplemental Security program, or SSI
                      (report at Other Public Welfare, code 79); activities funded
                      by Federal Job Training Partnership Act (JTPA) monies channeled
                      through public employment offices (report at function involved).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Report intergovernmental expenditures here only for the
                      Federal Government; report any state government intergovern-
                      mental payments at Other and Unallocable, code 89.  (2) Because
                      of its unique position as a city-cum-state, Washington DC is
                      the only local government to report data at this function.
                      (3) This function is titled Employment Security Administration
                      when applied just to state and local governments.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E22 Current operations........   .       .     .    N       N       N
           I22 Assistance and subsidies..   .       N     N    N       N       N
           F22 Construction..............   .       .     .    N       N       N
           G22 Land & existing structures   .       .     .    N       N       N
           K22 Equipment.................   .       .     .    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L22 State.....................   .       N     N    N       N       N
           M22 Locals, NEC...............   .       N     N    N       N       N

          EMPLOYMENT DATA................   .       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            22(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 23            NAME: Financial Administration

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Governmental Administration

          DEFINITION: Officials and central staff agencies concerned with tax
                      assessment and collection, accounting, auditing, budgeting,
                      purchasing, custody of funds, and other finance activities.

            EXAMPLES: Auditor, comptroller, treasurer, office of the finance director,
                      and other central accounting, budgeting, and purchasing
                      offices; tax administration, assessment, billing, and
                      collection; custody and disbursement of funds; revenue
                      collection activities like tax sales, tax litigation, and
                      charges of depositories; state supervision of local finances;
                      management of debt and of investments (including that of own
                      utilities); cost of insurance for issuing debt; administration
                      of employee-retirement, workers' compensation, and state other
                      insurance trust funds; lottery administrative costs (equal to
                      amount coded Z53); licensing and tax collection activities of
                      motor vehicle departments; distinctive tax collection activities
                      of regulatory agencies; central data processing centers; and
                      other finance activities not recorded elsewhere.  For Federal
                      Government also includes Federal Reserve System and Bureau of
                      Engraving and Printing and U.S. Mint (Department of the Treasury).

          EXCLUSIONS: Internal financial management activities of functional agencies
                      (report at function of agency involved); administration of
                      unemployment compensation systems and of Federal Social Security
                      and Railroad Retirement Trust Funds (report at Social Insurance
                      Administration, code 22); benefits paid from employee retirement,
                      workers' compensation, and state other insurance trusts (report
                      at appropriate insurance trust code); activities of motor vehicle
                      departments other than licensing (report at Protective Inspection
                      and Regulation, NEC, code 66); installation and maintenance of
                      local government parking meters (report at Parking Facilities,
                      code 60); purchase and maintenance of real property held for
                      investment (report at Other and Unallocable, code 89).

          REFERENCES: <To be added later.>

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E23 Current operations........   .       .     .    .       .       N
           I23 Assistance and subsidies..   .       N     N    N       N       N
           F23 Construction..............   .       .     .    .       .       N
           G23 Land & existing structures   .       .     .    .       .       N
           K23 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L23 State.....................   .       N     N    .       .       N
           M23 Locals, NEC...............   .       .     .    .       .       N
           N23 General purpose locals....   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            23(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 24            NAME: Fire Protection

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Public Safety

          DEFINITION: Prevention, avoidance, and suppression of fires and provision
                      of ambulance, medical, rescue, or auxiliary services provided
                      by fire protection agencies.

            EXAMPLES: Regular fire departments; financial, technical, and operational
                      support of volunteer fire forces; fire hydrant charges; rescue
                      squads; fire inspection, investigation, and regulation; fire
                      marshalls; fire prevention education; fire suppression training;
                      auxiliary services; fire stations, buildings, and other
                      facilities used exclusively for fire protection purposes; and
                      these activities IF handled by a fire department: ambulances,
                      emergency medical technicians (EMTs), paramedic squads, and arson
                      investigation.  Also include any identifiable amounts for
                      services rendered by other agencies of the same government for
                      fire protection or suppression, such as provision of water by
                      water supply utility.

          EXCLUSIONS: Forest-fire protection and suppression (report Federal and
                      state expenditure at Forestry, code 56, and local amounts at
                      Other Natural Resources, code 59); ambulances, emergency
                      medical technicians, and paramedic squads handled by non-fire
                      departments (report at Health, code 32).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Effective with 1988 data, the treatment of ambulance and
                      emergency medical services was clarified to include it here
                      only if handled by a fire protection agency.  (2) This function
                      applies solely to local governments; report any related Federal
                      and state government data at Other and Unallocable, code 89,
                      except forest fire protection and suppression as described under
                      the Exclusions section.  (3) For employment, treat volunteer
                      fire fighters remunerated on a "per fire" or other such basis
                      as part-time employees.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E24 Current operations........   N       N     .    .       .       .
           F24 Construction..............   N       N     .    .       .       .
           G24 Land & existing structures   N       N     .    .       .       .
           K24 Equipment.................   N       N     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L24 State.....................   N       N     N    .       .       .
           M24 Locals, NEC...............   N       N     .    .       .       .

          EMPLOYMENT DATA................   N       N     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            24(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 25            NAME: Judicial and Legal

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Governmental Administration

          DEFINITION: Courts (criminal and civil) and activities associated with
                      courts, legal services, and legal counseling of indigent or
                      other needy persons.

            EXAMPLES: Criminal and civil courts of limited and general jurisdiction;
                      appellate courts; juries, court reporters, witness fees, and
                      law libraries; medical and social service activities of courts
                      (except probation); court activities of sheriff offices
                      (bailiffs or "civil" functions); registers of wills and other
                      probate activities; legal departments, general counsels,
                      solicitors, prosecuting and district attorneys; attorneys
                      providing government-wide services; public defenders; payments
                      for court-appointed lawyers; indigent defense; and contributions
                      to legal aid societies.

          EXCLUSIONS: Probation (report at Other Corrections, code 05); judgments and
                      claims and crime victim compensation or reparation (report at
                      Other and Unallocable, code 89); boards of appeal for zoning,
                      tax assessment, workers' compensation, or other nonjudicial areas
                      adjudication related strictly to administrative rule-making;
                      "judges" which are administrative or executive positions (report
                      at Central Staff Services, code 29).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Effective with 1982 data, this category was expanded (a)
                      from court activities only to also encompass legal services and
                      public defense, formerly classed under Central Staff Services,
                      code 29, and Other Public Welfare, code 79, respectively, and
                      (b) to cover all general purpose governments instead of states
                      and large cities and counties.  (2) Exclude from employment
                      data private attorneys on retainer and court-appointed private
                      counsel.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E25 Current operations........   .       .     .    .       .       N
           I25 Assistance and subsidies..   .       N     N    N       N       N
           F25 Construction..............   .       .     .    .       .       N
           G25 Land & existing structures   .       .     .    .       .       N
           K25 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L25 State.....................   .       N     N    .       .       N
           M25 Locals, NEC...............   .       .     .    .       .       N
           N25 General purpose locals....   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            25(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 26            NAME: Legislative

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Governmental Administration



          DEFINITION: Legislative bodies and related activities involved in the
                      making, enacting, and repeal of laws.



            EXAMPLES: U.S. Congress; state legislatures; research and investigative
                      agencies and committees directly responsible to the legislature.



          EXCLUSIONS: Major agencies within the legislative branch operating
                      autonomously and having a specific function (e.g., report
                      U.S. Library of Congress at Libraries, code 52, and the
                      U.S. General Accounting Office (GAO) at Financial
                      Administrative, code 23).



          REFERENCES: <To be added later.>



         OTHER NOTES: (1) This function applies solely to Federal and state government
                      expenditures; report any related local expenditure and all
                      employment data at Central Staff Services, code 29.  (2) This
                      function includes direct expenditures only--report any inter-
                      governmental outlays at code 29.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E26 Current operations........   .       .     N    N       N       N
           F26 Construction..............   .       .     N    N       N       N
           G26 Land & existing structures   .       .     N    N       N       N
           K26 Equipment.................   .       .     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.









                                                                            26(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 28            NAME: Veterans' Health (Federal only)

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Health



          DEFINITION: Federal Government provision of health care services to veterans
                      other than for hospital care.



            EXAMPLES: Comprises health care activities of the U.S. Department of
                      Veterans Affairs (VA) for: veterans outpatient medical and
                      dental care; veterans medical, rehabilitation, and prosthetic
                      research; payments to private physicians and dentists for
                      medical care provided to veterans.



          EXCLUSIONS: Inpatient health care services at VA hospitals (report at Own
                      Hospitals-Veterans, code 37); payments for health care for
                      veterans in other public or private hospitals (report at Other
                      Hospitals-Veterans, code 39); Department of Defense health care
                      services for active or retired military personnel (report at
                      National Defense and International Relations, code 06).



          REFERENCES: <To be added later.>



         OTHER NOTES: This function applies solely to the Federal Government; report
                      any related state or local government expenditure and employment
                      data at Other Health, code 32.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
     
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E28 Current operations........   .       N     N    N       N       N
           I28 Assistance and subsidies..   .       N     N    N       N       N
           F28 Construction..............   .       N     N    N       N       N
           G28 Land & existing structures   .       N     N    N       N       N
           K28 Equipment.................   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L28 State.....................   .       N     N    N       N       N
           M28 Locals, NEC...............   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.


                                                                            28(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 29            NAME: Central Staff Services

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Governmental Administration


          DEFINITION: Government-wide executive, administrative, and staff service
                      agencies other than financial, judicial, legal, and Federal
                      or state legislative activities.


            EXAMPLES: Office of the chief executive, mayor, city manager, county
                      administrator; central personnel administration; overall
                      planning and zoning; clerk's office, recorder, and general
                      public reporting; central staff executive and administrative
                      agencies.  For local governments also includes legislative
                      activities such as city or county council, board of
                      supervisors, commissioners, etc.


          EXCLUSIONS: Planning activities limited to a specific function and internal
                      control or administrative activities of functional agencies
                      (report at function of agency involved); conduct of elections
                      (report at Other and Unallocable, code 89); central finance
                      agencies and data processing centers (report at Financial
                      Administration, code 23); multi-purpose public buildings and
                      related services (report at General Public Buildings, code 31);
                      clerk of court and other judicial recording activities (report
                      at Judicial and Legal, code 25).


          REFERENCES: <To be added later.>


         OTHER NOTES: Effective with 1982 data, legal activities formerly included
                      here were reclassified at Judicial and Legal, code 25.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E29 Current operations........   .       .     .    .       .       N
           I29 Assistance and subsidies..   .       N     N    N       N       N
           F29 Construction..............   .       .     .    .       .       N
           G29 Land & existing structures   .       .     .    .       .       N
           K29 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L29 State.....................   .       N     N    .       .       N
           M29 Locals, NEC...............   .       .     .    .       .       N
           N29 General purpose locals....   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       N

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            29(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 30            NAME: General Local Government Support

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: General Government, NEC


          DEFINITION: State government intergovernmental payments to local governments
                      that are unrestricted as to the function or purpose for which
                      they may be spent.


            EXAMPLES: State-collected taxes shared with localities, usually on a
                      formula basis (e.g., taxes on general sales, cigarettes,
                      income, etc.); distribution of profits from alcoholic beverage
                      monopolies; payments-in-lieu-of-taxes; per capita aid; revenue
                      sharing programs; general municipal or county aid unrestricted
                      in its uses (e.g., distributed on basis of population); amounts
                      to reimburse local units for property tax relief, homestead
                      exemptions, and other tax losses; and state redistribution of
                      Federal grazing fees.


          EXCLUSIONS: Aid or grant programs that apply distinctively either to school
                      districts (report at the appropriate Education function, codes
                      12-21) or to single-purpose special districts--e.g., drainage
                      districts, road districts, etc. (report at function involved);
                      state taxes collected by local governments and retained as a fee
                      or for other purposes (treat as tax revenue of local government).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) This function applies solely to state intergovernmental
                      expenditures; report any related direct costs and all employment
                      data for the administration of these programs according to the
                      function of the distributing agency.  (2) Report any comparable
                      Federal or local intergovernmental expenditure data at Other
                      and Unallocable, code 89.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES,                                                       
              INTERGOVERNMENTAL, TO:                                                 

           M30 Locals, NEC...............   N       .     N    N       N       N
           N30 General purpose locals....   N       .     N    N       N       N
           R30 Special districts.........   N       .     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.




                                                                            30(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 31            NAME: General Public Buildings

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Governmental Administration



          DEFINITION: Construction, equipping, maintenance, and operation of general
                      public buildings not related to specific functions or agencies.



            EXAMPLES: Courthouses (i.e., general county offices buildings), city
                      halls, multi-purpose office buildings and annexes; and
                      lighting, janitorial, custodial, and other services furnished
                      for general public buildings.



          EXCLUSIONS: School buildings, police stations, firehouses, libraries,
                      institutional buildings, jails, hospitals, courthouses that
                      hold only courts and related judicial agencies, etc. (report
                      at function involved to the extent practicable).



          REFERENCES: <To be added later.>



         OTHER NOTES: (1) This function applies solely to state and local government
                      expenditures; report any related Federal expenditure and all
                      employment data at Other and Unallocable, code 89.  (2) This
                      function includes direct expenditures only--report any
                      intergovernmental outlays at code 89.




         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E31 Current operations........   N       .     .    .       .       N
           F31 Construction..............   N       .     .    .       .       N
           G31 Land & existing structures   N       .     .    .       .       N
           K31 Equipment.................   N       .     .    .       N       N


          * Shows whether data are collected () or not collected (N) for that type.







                                                                            31(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 32            NAME: Other Health

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Health

          DEFINITION: Provision of services for the conservation and improvement of
                      public health, other than hospital care, and financial support
                      of other governments' health programs.

            EXAMPLES: Public health administration, laboratories, public education,
                      vital statistics, research, and other general health activities;
                      categorical health programs (e.g., control of cancer, TB,
                      socially transmitted diseases, mental illness, etc. and
                      maternal and child health care); health-related inspection and
                      regulation (e.g., inspection of restaurants, water supplies,
                      food handlers, nursing homes, etc.); community and visiting
                      nurses; immunization programs; out-patient health clinics;
                      regulation of air and water quality, sanitary engineering, and
                      other environmental health activities; rabies and animal
                      control; abatement of mosquitos, rodents, and other vermin;
                      ambulance and emergency medical services ONLY IF handled
                      separately from fire department; alcohol and drug abuse
                      prevention and rehabilitation; school health services provided
                      by a health agency; activities funded by Federal W.I.C. funds--
                      Women, Infants, and Children.  For Federal Government also
                      includes Food and Drug Administration and Environmental
                      Protection Agency (except sewerage construction grants).

          EXCLUSIONS: Vendor payments for medical appliances, supplies, or services
                      under public assistance programs (use code E74); examination
                      and licensing of health-related professions--e.g., doctors,
                      nurses, and barbers (report at Protective Inspection and
                      Regulation, NEC, code 66); activities related to agricultural
                      standards or protection of agricultural products from disease
                      (report at Other Agriculture, code 54); operation or
                      construction of nursing homes (report at Public Welfare, codes
                      77/79); vocational rehabilitation (report at Education, codes
                      18/21); coroners and crime labs (report at Police Protection,
                      code 62).  For Federal Government exclude veterans' medical
                      care (report at Veterans' Health, code 28).

          REFERENCES: <To be added later.>

         OTHER NOTES: Effective with 1988 data, the classification of the following
                      items was clarified: report nursing homes (except inspection of)
                      at Public Welfare and ambulance services at Health only if
                      latter are not organized under a fire department.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E32 Current operations........   .       .     .    .       .       .
           I32 Assistance and subsidies..   .       N     N    N       N       N
           F32 Construction..............   .       .     .    .       .       .
           G32 Land & existing structures   .       .     .    .       .       .
           K32 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L32 State.....................   .       N     N    .       .       .
           M32 Locals, NEC...............   .       .     .    .       .       .
           N32 General purpose locals....   N       .     N    N       N       N
           R32 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            32(0)-6/92 
         76

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 36            NAME: Own Hospitals (except Federal veterans)

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Hospitals
                                     Other Than Federal Veterans

          DEFINITION: Hospital facilities providing in-patient medical care and
                      institutions primarily for care and treatment of handicapped
                      (rather than education) which are directly administered by a
                      government, including those operated by public universities.
                      Also covers direct payments for acquisition or construction
                      of hospitals whether or not the government will operate the
                      completed facility.

            EXAMPLES: Government-operated general hospitals; institutions for the
                      custody, treatment, or general care of the mentally insane or
                      defective, feeble-minded, mentally retarded, or emotionally
                      disturbed; TB sanatoria, maternity and children hospitals,
                      orthopedic hospitals, and hospitals for chronic diseases;
                      institutions for care and treatment of blind, deaf, develop-
                      mentally disabled, or other special classes of handicap;
                      hospitals associated with university medical schools (including
                      paid student help).

          EXCLUSIONS: Nursing homes (or other welfare institutions) not directly
                      associated with a public hospital (report at Public Welfare,
                      codes 77/79); state schools for blind, deaf, or other handicapped
                      primarily for education and training (report at Other Education,
                      code 21); hospitalization of persons in other public or private
                      hospitals (report at Other Hospitals, codes 38/39); payments to
                      private vendors for medical care under welfare programs (use
                      code E74); support of other public or private hospitals (use
                      code 38); infirmaries serving particular institutions, like
                      college infirmaries and prison hospitals (report at function
                      involved); hospitals for criminally insane operated by
                      corrections agency (report at Correctional Institutions,
                      code 04); payments to or employment of private corporations
                      which lease and operate government-owned hospitals (for payments,
                      use code 38); instructional staff of medical school hospitals
                      (report at Other Higher Education, code 18); veterans hospitals
                      operated by U.S. Veterans Administration (report at Own
                      Hospitals-Veterans, code 37).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Report public hospital expenditures from Federal Medicaid
                      funds here.  (2) Effective with 1985 data, the following four
                      state-only categories were consolidated into this single
                      function due to the growing difficulty of distinguishing them:
                      Regular Mental Hospitals, Other Mental Hospitals, General
                      Hospitals, and Own Hospitals, NEC.  (3) Refer to dependent
                      agency checklists for state and large city and county government
                      institutions included in this function.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E36 Current operations........   .       .     .    .       .       .
           F36 Construction..............   .       .     .    .       .       .
           G36 Land & existing structures   .       .     .    .       .       .
           K36 Equipment.................   .       .     .    .       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            36(0)-6/92 
          75

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 37            NAME: Own Hospitals-Veterans (Federal only)

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Hospitals
                                     Federal Veterans


          DEFINITION: Hospital facilities providing medical care to veterans and
                      institutions primarily for the care and treatment of service-
                      connected disabilities and which are directly administered by
                      the Federal Government.


            EXAMPLES: Comprises hospitals and related medical facilities operated by
                      the U.S. Department of Veterans Affairs (VA).


          EXCLUSIONS: Payments to other hospital facilities (public or private) for
                      medical care of veterans (report at Other Hospitals-Veterans,
                      code 39); VA outpatient medical care (report at Veterans Health,
                      code 28); veterans medical and prosthetic research (use code 28);
                      domiciliary medical care and contract nursing home care (report
                      at Other Public Welfare, code 79); health training and education
                      (report at Other Education, code 21); hospitals operated by the
                      Department of Defense (report at National Defense and Inter-
                      national Relations, code 06).


          REFERENCES: <To be added later.>


         OTHER NOTES: This function applies solely to the Federal Government; report
                      any state-operated veterans hospitals at Own Hospitals, code 36.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
     
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E37 Current operations........   .       N     N    N       N       N
           I37 Assistance and subsidies..   .       N     N    N       N       N
           F37 Construction..............   .       N     N    N       N       N
           G37 Land & existing structures   .       N     N    N       N       N
           K37 Equipment.................   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L37 State.....................   .       N     N    N       N       N
           M37 Locals, NEC...............   .       N     N    N       N       N

          EMPLOYMENT DATA................   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.




                                                                            37(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 38            NAME: Other Hospitals (except Federal veterans)

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Hospitals
                                     Other Than Federal Veterans


          DEFINITION: Provision of hospital care in other hospitals (public or
                      private) and support of other public and private hospitals.

       
            EXAMPLES: Hospitalization of persons in other public or private hospitals,
                      except payments made under public welfare programs; financial
                      support of other public or private hospitals, including
                      construction; payments to private corporations who lease and
                      operate government-owned hospitals; construction of hospitals
                      to be leased or turned over to others to operate IF government
                      actually supervises of controls their construction.

     
          EXCLUSIONS: Payments to private vendors for hospital care administered
                      as part of public medical assistance programs (report at Vendor
                      Payments for Medical Care, code E74); payments to public
                      hospitals by other agencies of same government (internal
                      transfers); payments for medical care in nursing homes or other
                      welfare institutions unless facility is associated with a
                      hospital (report at Public Welfare, codes 77/79); U.S. Depart-
                      ment of Veterans Affairs payments for contractual hospital care
                      (report at Other Veterans' Hospitals, code 39).

     
          REFERENCES: <To be added later.>


         OTHER NOTES: No employment data are associated with this function.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E38 Current operations........   .       .     .    .       .       N
           I38 Assistance and subsidies..   .       N     N    N       N       N
           F38 Construction..............   .       .     .    .       .       N
           G38 Land & existing structures   .       .     .    .       .       N
           K38 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 

           L38 State.....................   .       N     N    .       .       .
           M38 Locals, NEC...............   .       .     .    .       .       .
           N38 General purpose locals....   N       .     N    N       N       N
           R38 Special districts.........   N       .     N    N       N       N

         * Shows whether data are collected () or not collected (N) for that type.

                                                                            38(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 39            NAME: Other Hospitals-Veterans (Federal only)

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Hospitals
                                     Federal Veterans


          DEFINITION: Federal Government provision of hospital care to eligible
                      veterans in hospitals (public or private) other than those
                      operated by the U.S. Department of Veterans Affairs (VA).


            EXAMPLES: Contract hospitalization of veterans; grants to state govern-
                      ments for hospitalizing veterans in state hospitals and for
                      constructing or improving extended medical care facilities
                      furnishing care to veterans; other payments for care and treat-
                      ment of veterans in hospital facilities not under the jurisdiction
                      of the VA.


          EXCLUSIONS: Contract care or grants for nursing home care and domiciliary
                      medical care (report at Other Public Welfare, code 79); hospitals
                      operated by the Department of Defense (report at National Defense
                      and International Relations, code 06).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) This function applies solely to the Federal Government; report
                      any related state or local government payments for care of veterans
                      in other public or private hospitals at Other Hospitals, code 38.
                      (2) No employment data are associated with this function.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
     
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E39 Current operations........   .       N     N    N       N       N
           I39 Assistance and subsidies..   .       N     N    N       N       N
           F39 Construction..............   .       N     N    N       N       N
           G39 Land & existing structures   .       N     N    N       N       N
           K39 Equipment.................   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L39 State.....................   .       N     N    N       N       N
           M39 Locals, NEC...............   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.






                                                                            39(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 44            NAME: Regular Highways

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Transportation
                                   Highways

          DEFINITION: Maintenance, operation, repair, and construction of nontoll
                      highways, streets, roads, alleys, sidewalks, bridges, tunnels,
                      ferry boats, viaducts, and related structures.

            EXAMPLES: Snow and ice removal and application of salt and sand (including
                      that by sanitation or street cleaning agencies, if identifiable);
                      street or highway lighting and related fixtures; traffic signals;
                      highway and traffic design, planning, and engineering IF handled
                      by public works or highways agency; highway safety; nontoll
                      ferries; operation of drawspans; garages, administrative
                      buildings, and other facilities of highway agencies; construction
                      and maintenance of such highway-related items as curbs, gutters,
                      crosswalks, grade separations, trestles, railroad crossings, and
                      storm drains that are integral to highway projects; value of
                      prison labor provided by corrections agencies; intergovernmental
                      payments for highways (toll or free), including state aid for
                      debt service on local highway debt.

          EXCLUSIONS: Patrol or policing of streets and highways and traffic control
                      activities of police or public safety agencies (report at Police
                      Protection, code 62); street cleaning activities (report at
                      Solid Waste Management, code 81); local public parking facilities
                      or meters (report at Parking Facilities, code 60); operation of
                      water transport and terminal facilities (use code 87); roads and
                      walkways within parks and maintained by a park agency (report at
                      Parks and Recreation, code 61); drainage unrelated to highway
                      projects (report at Other Natural Resources, code 59).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Report cost of street lighting furnished by an electric
                      utility operated by same government here and deduct an equal
                      amount from Electric Power utility, code E92.  (2) Effective
                      with 1988 data, the treatment of traffic engineering was
                      clarified to include it here unless expressly handled by a police
                      agency.  (3) Report employment data for toll highways here.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E44 Current operations........   .       .     .    .       .       .
           I44 Assistance and subsidies..   .       N     N    N       N       N
           F44 Construction..............   .       .     .    .       .       .
           G44 Land & existing structures   .       .     .    .       .       .
           K44 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L44 State.....................   .       N     N    .       .       .
           M44 Locals, NEC...............   .       .     .    .       .       .
           N44 General purpose locals....   N       .     N    N       N       N
           R44 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            44(0)-6/92 
           70

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 45            NAME: Toll Highways

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Transportation
                                   Highways


          DEFINITION: Maintenance, operation, repair, and construction of highways,
                      roads, bridges, ferries, and tunnels operated on a fee or
                      toll basis.


            EXAMPLES: Turnpikes, toll roads, toll bridges, toll ferries (including
                      docks and related terminals), toll tunnels, and all related
                      activities and facilities such as snow and ice removal,
                      highway police and fire protection units IF administered
                      by the toll authority, lighting and light fixtures, design
                      and engineering, garages and administrative buildings of toll
                      authorities, operation of toll booths, drawspans, rest stops,
                      and service areas by the toll authority itself.


          EXCLUSIONS: Debt service on toll facility debt (report interest payments at
                      code I89 and repayment of principal at appropriate debt retire-
                      ment code, 3-X); intergovernmental aid for toll facilities,
                      including state aid for debt service on local highway debt
                      (report at Regular Highways, code 44); police and fire protec-
                      tion services not provided by toll authority itself (report at
                      Police Protection, code 62, or Fire Protection, code 24); free
                      ferries (use code 44).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) This function includes direct expenditures only--report
                      any intergovernmental outlays at Regular Highways, code 44.
                      (2) Report expenditures without deducting any related tolls or
                      charges.  (3) For leased facilities include government's
                      expenditures and exclude those of the lessees'.  (4) Report
                      any related special district expenditures and all employment
                      data at Regular Highways, code 44.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E45 Current operations........   N       .     .    .       .       N
           F45 Construction..............   N       .     .    .       .       N
           G45 Land & existing structures   N       .     .    .       .       N
           K45 Equipment.................   N       .     .    .       N       N


          * Shows whether data are collected () or not collected (N) for that type.


                                                                            45(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 47            NAME: Private Transit Subsidies

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Transportation


          DEFINITION: Payments in support of privately-owned and operated transit
                      utility operations, including railroads.


            EXAMPLES: Payments or subsidies to private bus companies, railways, light
                      rail, or other private passenger transportation systems for
                      construction, purchase of equipment, and operations; subsidies
                      to railroads for continued service to rural or outlying areas.


          EXCLUSIONS: Payments in support of highway-related activities (report at
                      Regular Highways, code 44); subsidies to transit utilities
                      operated by other governments (report at Transit Systems, code
                      94); payments to private firms to provide transportation for
                      government employees--e.g., shuttle bus service between
                      public buildings (report at function of paying agency or at
                      Other and Unallocable, code 89); payments to private firms
                      for transporting pupils (report at Elementary and Secondary
                      Education, code 12); subsidies or contributions to own transit
                      system (use exhibit-only code Z61).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) Effective with 1988 data, payments to other governments
                      for support of their transit operations are classified at
                      Transit Systems, code 94, rather than here.  Created as an
                      aid to users, these intergovernmental expenditures codes for
                      transit utilities will continue to be reported as general
                      government activities in Census Bureau publications.  (2) No
                      employment data are associated with this function.  (3) Report
                      Federal Government mass transit grants at Other and Unallocable,
                      code 89.  (4) This function was added to the classification
                      manual beginning with fiscal year 1976-77 data.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E47 Current operations........   N       .     .    .       .       .

          EXHIBIT-ONLY CODE:                                                 

           Z61 Contribution to own
                 transit system..........   N       .     N    .       .       N

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            47(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 50            NAME: Housing and Community Development

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Environment and Housing

          DEFINITION: Construction, operation, and support of housing and
                      redevelopment projects and other activities to promote or
                      aid public and private housing and community development.

            EXAMPLES: Housing: Planning, construction, furnishing, and operation of
                      public housing projects (generally for persons not adequately
                      served by private sector); rent subsidies (e.g., "Section 8"
                      assistance); housing and mortgage finance agencies; promotion
                      of home ownership; assistance for repair and renovation of
                      existing homes; and programs to encourage private sector housing
                      production.  Community development: Urban renewal and slum
                      clearance; redevelopment and rehabilitation of substandard or
                      deteriorated facilities and areas; rural redevelopment; and
                      revitalization of commercial areas.

          EXCLUSIONS: Building inspection and enforcement of housing codes or
                      standards (report at Protective Inspection and Regulation, NEC,
                      code 66); direct loans to individuals, builders, landlords, or
                      others (nonexpenditures); distribution of proceeds from mortgage
                      revenue bonds (see Chapter 9 on debt); temporary shelters or
                      housing for the homeless (report at Public Welfare, codes 77/79);
                      and construction and maintenance of military housing by the
                      U.S. Department of Defense (report at National Defense and
                      International Relations, code 06).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) The emphasis of this function is on physical plant--its
                      construction, provision, improvement, financing, and the
                      operation of public housing facilities.  Activities that directly
                      aid homeowners or renters themselves (e.g., housing expense relief)
                      generally fall under Public Welfare functions.  (2) Report
                      community development block grants clearly identified as being for
                      other functions, such as sewers, streets, parks, etc., with those
                      functions UNLESS an integral part of a housing project.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                           General Purpose Governments             
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E50 Current operations........   .       .     .    .       .       .
           I50 Assistance and subsidies..   .       N     N    N       N       N
           F50 Construction..............   .       .     .    .       .       .
           G50 Land & existing structures   .       .     .    .       .       .
           K50 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L50 State.....................   .       N     N    .       .       .
           M50 Locals, NEC...............   .       .     .    .       .       .
           N50 General purpose locals....   N       .     N    N       N       N
           R50 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            50(0)-6/92 
          69

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 51            NAME: Farm Credit Programs (Federal only)

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Natural Resources
                                     Agriculture


          DEFINITION: Federal Government programs for providing direct loans and loan
                      guarantees to farmers, for the construction and operation of
                      rural electric power and telephone systems, and for the regu-
                      lation and examination of financial institutions constituting
                      the Farm Credit System.


            EXAMPLES: Comprises the activities of: U.S. Farmers Home Administration
                      (agricultural credit insurance, rural housing insurance, and
                      related administration); Rural Electrification Administration
                      (rural electrification and telephone loans and guaranteed loans,
                      Rural Telephone Bank, and related administration); and the Farm
                      Credit Administration.


          EXCLUSIONS: Extensions of loans themselves and the value of guaranteed loans
                      (nonexpenditures); rural water and wastewater disposal grants
                      (report at Other and Unallocable, code 89); rural economic
                      development loan programs (use code 89); Federal crop insurance
                      and other farm income or price support programs (report at Farm
                      Income Stabilization, code 53).


          REFERENCES: <To be added later.>


         OTHER NOTES: This function applies solely to the Federal Government expend-
                      itures--report any related Federal employment data at Other
                      Natural Resources, code 59.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
     
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E51 Current operations........   .       N     N    N       N       N
           I51 Assistance and subsidies..   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L51 State.....................   .       N     N    N       N       N
           M51 Locals, NEC...............   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.






                                                                            51(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         -----------------------------------------------------------------------------
          
         FUNCTION CODE: 52            NAME: Libraries

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Education Services


          DEFINITION: Establishment and provision of libraries for use by the
                      general public and the technical and financial support of
                      privately-operated libraries.


            EXAMPLES: Public libraries, community libraries, consolidated libraries,
                      regional libraries, and their variously-named equivalents;
                      library extension services including bookmobiles; public
                      library (special) districts; U.S. Library of Congress (including
                      Copyright Office); state library commissions and boards; aid
                      for the construction or operation of other libraries,
                      governmental or private; programs to promote, develop, and
                      coordinate library services and facilities.


          EXCLUSIONS: Law libraries (report at Judicial and Legal, code 25); libraries
                      operated by school systems--elementary, secondary, or higher
                      education--primarily for the benefit of students and teachers
                      (report at Education, codes 12/18); specialized libraries
                      which do not serve the general public, such as a medical library
                      of a university hospital (report at function involved).


          REFERENCES: <To be added later.>


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E52 Current operations........   .       .     .    .       .       .
           I52 Assistance and subsidies..   .       N     N    N       N       N
           F52 Construction..............   .       .     .    .       .       .
           G52 Land & existing structures   .       .     .    .       .       .
           K52 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 

           L52 State.....................   .       N     N    .       .       .
           M52 Locals, NEC...............   .       .     .    .       .       .
           N52 General purpose locals....   N       .     N    N       N       N
           R52 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       N1    .    .       .       .


          * Shows whether data are collected () or not collected (N) for that type.

          1 Except State of Hawaii.

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 53            NAME: Farm Income Stabilization (Federal only)

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Natural Resources
                                     Agriculture


          DEFINITION: Federal Government programs to stabilize, support, and protect
                      farm income and prices through commodity loans, purchases, and
                      payments, production limits, and crop insurance.


            EXAMPLES: Comprises these activities of the U.S. Department of Agriculture:
                      Commodity Credit Corporation (CCC); Agricultural Stabilization
                      and Conservation Service (which administers much of the CCC's
                      commodities program as well as related land use programs designed
                      for voluntary production adjustment, resource protection, and
                      price and farm income stabilization); the Federal Crop Insurance
                      Corporation (which seeks to improve agricultural economic stability
                      through a system of crop insurance covering losses from natural
                      hazards); and purchase of commodities for child nutrition programs.


          EXCLUSIONS: Extensions of loans themselves (nonexpenditures); sale or provision
                      of agricultural commodities to other countries, such as Food for
                      Progress (PL 480) and Food for Peace programs (report at National
                      Defense and International Relations, code 06); transfer of funds
                      from the CCC to the Agricultural Stabilization and Conservation
                      Service (an intragovernmental transfer); conservation programs
                      unrelated to price or income support; agricultural credit pro-
                      grams unrelated to farm income stabilization (report at Farm
                      Credit Programs, code 51).


          REFERENCES: <To be added later.>


         OTHER NOTES: This function applies solely to Federal Government expenditures;
                      report any related Federal employment data at Other Natural
                      Resources, code 59).


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E53 Current operations........   .       N     N    N       N       N
           I53 Assistance and subsidies..   .       N     N    N       N       N
           F53 Construction..............   .       N     N    N       N       N
           G53 Land & existing structures   .       N     N    N       N       N
           K53 Equipment.................   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L53 State.....................   .       N     N    N       N       N
           M53 Locals, NEC...............   .       N     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            53(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 54            NAME: Other Agriculture

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Natural Resources
                                     Agriculture

          DEFINITION: Development, improvement, promotion, and conservation of natural
                      resources for agricultural purposes; and the regulation and
                      inspection of agricultural products and establishments.

            EXAMPLES: Support and promotion of agricultural associations, fairs,
                      livestock and poultry shows, and the like; agricultural boards
                      and advisory commissions; provision of agricultural extension
                      services; agricultural experiment stations and other research
                      activities; promotion, improvement, and control of livestock
                      production and dairy products; promotion of improved methods to
                      store, pack, label, and market farm products; promotion of the
                      sale or consumption of agricultural goods; regulation of the
                      quality, safety, and handling of agricultural products, such as
                      inspection, licensing, and standardization; protection of crops
                      and stocks from predatory animals and other natural hazards.

          EXCLUSIONS: Agricultural schools and land grant colleges except for agricu-
                      cultural experiment stations and extension services (report at
                      Other Higher Education, code 18); distinctive activities for:
                      conservation of soil or water resources including flood control
                      and drainage (report Federal activities at Soil, Water, and Electric
                      Energy Resources, code 57, and state activities at Other Natural
                      Resources, code 59); Fish and Game (use code 55), or Forestry
                      (use code 56); regulation of weights and measures (report at
                      Protective Regulation and Inspection, NEC, code 66).  For Federal
                      Government also exclude activities recordable under Farm Credit
                      Programs (code 51) or Farm Income Stabilization (code 53).

          REFERENCES: <To be added later.>

         OTHER NOTES: This function applies solely to Federal and state government
                      expenditures; report any related local expenditure and all
                      employment data at Other Natural Resources, code 59.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E54 Current operations........   .       .     N    N       N       N
           I54 Assistance and subsidies..   .       N     N    N       N       N
           F54 Construction..............   .       .     N    N       N       N
           G54 Land & existing structures   .       .     N    N       N       N
           K54 Equipment.................   .       .     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L54 State.....................   .       N     N    N       N       N
           M54 Locals, NEC...............   .       .     N    N       N       N
           N54 General purpose locals....   N       .     N    N       N       N
           R54 Special districts.........   N       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            54(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 

         FUNCTION CODE: 55            NAME: Fish and Game

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Natural Resources


          DEFINITION: Conservation, improvement, development, and propagation of
                      fish and game resources; and the regulation and enforcement
                      of fish and game laws and rules.


            EXAMPLES: Fish and game commissions; operation of fish hatcheries;
                      stocking of lakes and streams; "seeding" of waterways for
                      propagation; regulation and enforcement of laws relating to
                      commercial or sport fishing and wildlife, including inspection
                      of processing facilities; fish and game wardens (including
                      those with arrest powers); research studies and surveys to
                      measure fish and wildlife populations; development and
                      maintenance of wildlife management or hunting and fishing areas;
                      management and protection of wildlife or fish species; and
                      related public education programs.


          EXCLUSIONS: Water or soil conservation activities not directly related to
                      fish and game (report Federal activities at Soil, Water, and
                      Electric Energy Resources, code 57, and state activities at
                      Other Natural Resources, code 59).


          REFERENCES: <To be added later.>


         OTHER NOTES: This function applies solely to state government expenditures;
                      report any related Federal or local expenditures and all
                      employment data at Other Natural Resources, code 59.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E55 Current operations........   N       .     N    N       N       N
           F55 Construction..............   N       .     N    N       N       N
           G55 Land & existing structures   N       .     N    N       N       N
           K55 Equipment.................   N       .     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 

           M55 Locals, NEC...............   .       .     N    N       N       N
           N55 General purpose locals....   N       .     N    N       N       N
           R55 Special districts.........   N       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            55(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 56            NAME: Forestry

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Natural Resources


          DEFINITION: Conservation, development, management, and protection of
                      forests and forest resources; regulation and inspection of
                      forest products and industries; and provision of assistance
                      to private or local government owners of woodlands.


            EXAMPLES: Cooperative forest management; forest crop land administration;
                      promotion of the use and marketing of forest products; forest
                      fire prevention, control, and suppression; state forest land
                      management; detection and control of insects and tree diseases;
                      operation and support of tree seedling nurseries; regulation
                      and inspection of timber producers, forest product industries,
                      and other wood processors; acquisition, development, and
                      management of state forests; reforestation activities; and urban
                      and community forestry.


          EXCLUSIONS: Forest-related activities of parks agencies (report at Parks
                      and Recreation, code 61); wildlife management unless an
                      inseparable part of a forestry agency (report Federal and local
                      activities at Other Natural Resources, code 59, and state
                      activities at Fish and Game, code 55).


          REFERENCES: <To be added later.>


         OTHER NOTES: This function applies solely to Federal and state expenditures;
                      report any related local expenditures and all employment data
                      at Other Natural Resources, code 59.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E56 Current operations........   .       .     N    N       N       N
           I56 Assistance and subsidies..   .       N     N    N       N       N
           F56 Construction..............   .       .     N    N       N       N
           G56 Land & existing structures   .       .     N    N       N       N
           K56 Equipment.................   .       .     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L56 State.....................   .       N     N    N       N       N
           M56 Locals, NEC...............   .       .     N    N       N       N
           N56 General purpose locals....   N       .     N    N       N       N
           R56 Special districts.........   N       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            56(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 57            NAME: Soil, Water, and Electric Energy Resources

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Natural Resources

          DEFINITION: Federal Government programs for the conservation, management,
                      and development of soil and water resources; flood prevention
                      and control; management of public lands; generation and distri-
                      bution of electric power (including hydroelectric energy); and
                      development of new or improved energy sources and technologies.

            EXAMPLES: Comprises the activities of: U.S. Department of Energy (energy
                      supply, research, and development; uranium supply and enrich-
                      ment; strategic petroleum reserves; electric power marketing
                      administrations; and Federal Energy Regulatory Commission);
                      Tennessee Valley Authority (TVA); Army Corps of Engineers' Civil
                      Works Program (flood control and prevention; beach erosion
                      control; dam safety; and hydropower stations); Department of the
                      Interior's Bureau of Reclamation (management and development of
                      water for irrigation, public and industrial use, salinity
                      control, dam safety, and flood prevention; and hydroelectric
                      generation) and Bureau of Land Management (management of public
                      lands and their resources); Department of Agriculture's Soil
                      Conservation Service; and the Nuclear Regulatory Commission.

          EXCLUSIONS: Department of Energy atomic energy defense activities (report at
                      National Defense and International Relations, code 06) and nuclear
                      waste disposal (report at Other and Unallocable, code 89); Army
                      Corps of Engineers' navigation and harbors activities (report at
                      Water Transport and Terminals, code 87); Bureau of Land Manage-
                      ment programs for managing minerals (report at Mineral Resources,
                      code 58) and  payments-in-lieu-of-taxes (use code 89); Rural
                      Electrification Administration (report at Farm Credit Programs,
                      code 51).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) This function applies solely to Federal Government expendi-
                      tures; report any related Federal employment data at Other
                      Natural Resources, code 59.  (2) Report state-local soil and
                      water conservation activities at code 59.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E57 Current operations........   .       N     N    N       N       N
           I57 Assistance and subsidies..   .       N     N    N       N       N
           F57 Construction..............   .       N     N    N       N       N
           G57 Land & existing structures   .       N     N    N       N       N
           K57 Equipment.................   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L57 State.....................   .       N     N    N       N       N
           M57 Locals, NEC...............   .       N     N    N       N       N


          *Shows whether data are collected () or not collected (N) for that type.

                                                                            57(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 58            NAME: Mineral Resources (Federal only)

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Natural Resources


          DEFINITION: Federal Government programs related to the exploration and
                      production of oil, gas, and other minerals; reclamation of mines
                      and abatement of the negative environmental effects of mining;
                      minerals research, information, and analysis; and enforcement
                      of mine safety laws and regulations.


            EXAMPLES: Comprises the activities of: U.S. Department of the Interior's
                      Minerals Management Service (overseeing offshore minerals
                      development and distributing funds to states from receipts under
                      the Mineral Leasing Act), Office of Surface Mining Reclamation
                      and Enforcement (including abandoned mine reclamation), and
                      Bureau of Mines; and the Department of Labor's Mine Safety and
                      Health Administration.


          EXCLUSIONS: Department of Energy strategic petroleum reserves program (report
                      at Soil, Water, and Electric Energy Resources, code 57); mineral
                      resource development on public lands managed by the Interior
                      Department's Bureau of Land Management (use code 57).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) This function applies solely to Federal Government expendi-
                      tures; report any related Federal employment data at Other
                      Natural Resources, code 59.  (2) Report state-local soil and
                      water conservation activities at code 59.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
     
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E58 Current operations........   .       N     N    N       N       N
           I58 Assistance and subsidies..   .       N     N    N       N       N
           F58 Construction..............   .       N     N    N       N       N
           G58 Land & existing structures   .       N     N    N       N       N
           K58 Equipment.................   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L58 State.....................   .       N     N    N       N       N
           M58 Locals, NEC...............   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.




                                                                            58(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 59            NAME: Other Natural Resources

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Natural Resources

          DEFINITION: Conservation, promotion, and development of natural resources
                      (soil, water, energy, minerals, etc.) and the regulation of
                      industries which develop, utilize, or affect natural resources.
                      For Federal and state governments, covers activities not reported
                      in other Natural Resources functions.

            EXAMPLES: Irrigation; drainage; flood control; soil conservation and
                      reclamation including prevention of soil erosion; surveying,
                      development, and regulation of water resources; regulation of
                      mineral resources and related industries including land reclam-
                      ation; wetlands and watershed management and protection; geological
                      surveying and mapping; regulation of gas and oil drilling and
                      production; dam and reservoir safety; public education programs
                      related to the above; technical and fiscal assistance to private or
                      other governmental efforts in these areas.  For Federal Government
                      also includes National Oceanic and Atmospheric Administration
                      (Department of Commerce) and Geological Survey (Department of the
                      Interior).

          EXCLUSIONS: Hydroelectric power facilities (report Federal activities at
                      Soil, Water, and Electric Energy Resources, code 57, and state-
                      local activities at Electric Power utilities, code 92); improve-
                      ment of waterways, construction and maintenance of canals, and
                      operation of public water transportation facilities (report at
                      Water Transport and Terminals, code 87); inspection of public
                      drinking water and activities related to air and water quality
                      or pollution control (report at Health, code 32); advertising of
                      state resources (report at Other and Unallocable, code 89).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Report all employment and any local government expenditure
                      data related to Natural Resources function codes 51-58 here.
                      (2) Some of the above activities may be reported in other
                      Natural Resources functions for states and especially for the
                      Federal Government (e.g., at Mineral Resources, code 58).

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E59 Current operations........   .       .     .    .       .       .
           I59 Assistance and subsidies..   .       N     N    N       N       N
           F59 Construction..............   .       .     .    .       .       .
           G59 Land & existing structures   .       .     .    .       .       .
           K59 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L59 State.....................   .       N     N    .       .       .
           M59 Locals, NEC...............   .       .     .    .       .       .
           N59 General purpose locals....   N       .     N    N       N       N
           R59 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            59(0)-6/92 
         70

         -----------------------------------------------------------------------------
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 60            NAME: Parking Facilities

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Transportation


          DEFINITION: Provision, construction, maintenance, and operation of local
                      government public parking facilities operated on a commercial
                      basis.


            EXAMPLES: Public parking lots and garages; purchase and maintenance of
                      parking meters, on street and on parking lots, and collection
                      of monies from them.


          EXCLUSIONS: Enforcement of parking regulations and laws--e.g. meter
                      readers (report at Police Protection, code 62); parking
                      facilities for exclusive use of government employees (?)
                      (report at General Public Buildings, code 30); parking
                      areas connected to a specific type of facility, such
                      as those for a public sports stadium (report at function of
                      facility involved, such as Parks and Recreation, code 61).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) This function applies solely to local government
                      expenditures; report any related Federal or state expenditures
                      and all employment data at Other and Unallocable, code 89.
                      (2) For leased facilities include local government expenditures
                      and exclude those of the lessees'.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E60 Current operations........   N       N     .    .       .       .
           F60 Construction..............   N       N     .    .       .       .
           G60 Land & existing structures   N       N     .    .       .       .
           K60 Equipment.................   N       N     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 

           L60 State.....................   N       N     N    .       .       .
           M60 Locals, NEC...............   N       N     .    .       .       .


          * Shows whether data are collected () or not collected (N) for that type.





                                                                            60(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 61            NAME: Parks and Recreation

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Environment and Housing


          DEFINITION: Provision and support of recreational and cultural-scientific
                      facilities maintained for the benefit of residents and
                      visitors.


            EXAMPLES: Golf courses, playgrounds, tennis courts, public beaches,
                      swimming pools, playfields, parks, camping areas, recreational
                      piers and marinas, etc., including support of private
                      facilities; galleries, museums, zoos, and botanical gardens;
                      auditoriums, stadiums, recreational centers, convention centers,
                      and exhibition halls; community music, drama, and celebrations
                      including public support of cultural activities.  For Federal
                      Government also includes Smithsonian Institution and National
                      Foundation on the Arts and the Humanities.


          EXCLUSIONS: Recreational and cultural-scientific activities and facilities
                      operated as part of school systems (report at Education, codes
                      12/18); marinas operated for commerce rather than recreation
                      (report at Water Transport and Terminals, code 87).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) Prior to 1977 data, this function applied solely to local
                      governments.  Effective with 1977 data, it was extended to cover
                      both Federal and state governments, whose activities were reported
                      previously at Forestry [and Parks], code 56.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E61 Current operations........   .       .     .    .       .       .
           I61 Assistance and subsidies..   .       N     N    N       N       N
           F61 Construction..............   .       .     .    .       .       .
           G61 Land & existing structures   .       .     .    .       .       .
           K61 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L61 State.....................   .       N     N    .       .       .
           M61 Locals, NEC...............   .       .     .    .       .       .
           N61 General purpose locals....   N       .     N    N       N       N
           R61 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            61(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 62            NAME: Police Protection

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Public Safety

          DEFINITION: Preservation of law and order, protection of persons and
                      property from illegal acts, and the prevention, control,
                      investigation, and reduction of crime.

            EXAMPLES: Regular police departments; law enforcement activities of
                      sheriff and constable offices; state highway patrols; criminal
                      investigation and testifying in court; police training academies;
                      coroners, medical examiners, forensic services, and crime labs;
                      temporary "lockups"; police communications and radios services;
                      buildings or other facilities used exclusively for police purposes
                      (including rentals); criminal justice planning; payments for
                      transporting criminals; and the following activities IF handled by
                      a police agency: motor vehicle inspection and regulation, liquor
                      law enforcement, and traffic control (e.g., enforcing speed laws,
                      operating radar units, directing traffic).  For Federal Government
                      also includes Federal Bureau of Investigation (FBI), Drug
                      Enforcement Administration (DEA), and Immigration and Natural-
                      ization Service (INS) of the Department of Justice, Bureau of
                      Alcohol, Tobacco, and Firearms and U.S. Secret Service of the
                      Department of the Treasury, and law enforcement activities of the
                      U.S. Customs Service, Internal Revenue Service, and Coast Guard.

          EXCLUSIONS: Special police forces of nonpolice agencies such as park rangers
                      and fish and game wardens (report at function of agency involved);
                      law enforcement units of legal offices (report at Judicial and
                      Legal, code 25); traffic control and engineering performed by non-
                      police agencies (report at Highways, codes 44/45); police jails
                      that hold people beyond arraignment (report at Corrections, codes
                      04/05); civil or bailiff activities of sheriff offices (use code 25).

          REFERENCES: <To be added later.>

         OTHER NOTES: Effective with 1988 data, the treatment of traffic control and
                      engineering was clarified to include it here only if handled by
                      a police agency.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E62 Current operations........   .       .     .    .       .       N
           I62 Assistance and subsidies..   .       N     N    N       N       N
           F62 Construction..............   .       .     .    .       .       N
           G62 Land & existing structures   .       .     .    .       .       N
           K62 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L62 State.....................   .       N     N    .       .       N
           M62 Locals, NEC...............   .       .     .    .       .       N
           N62 General purpose locals....   N       .     N    N       N       N
           R62 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            62(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 66            NAME: Protective Inspection and Regulation, NEC

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Public Safety

          DEFINITION: Regulation and inspection of private establishments for the
                      protection of the public or to prevent hazardous conditions
                      NOT classified under another major function.

            EXAMPLES: Inspection of plans, permits, construction, or installations
                      related to buildings, housing, plumbing, electrical systems, gas,
                      air conditioning, boilers, elevators, electric power plant sites,
                      nuclear facilities, weights and measures, etc.; regulation of
                      financial institutions, taxicabs, public service corporations,
                      insurance companies, private utilities (telephone, electric,
                      etc.), and other corporations; licensing, examination, and
                      regulation of professional occupations, including health-related
                      ones like doctors, nurses, barbers, beauticians, etc.; inspection
                      and regulation or working conditions and occupational hazards;
                      motor vehicle inspection and weighing unless handled by a police
                      agency; regulation and enforcement of liquor laws and sale of
                      alcoholic beverages unless handled by a police department.

          EXCLUSIONS: Distinctive license revenue collection activities (report at
                      Financial Administration, code 23); regulatory or inspection
                      activities related to food establishments or to environmental
                      health (report at Health, code 32); motor vehicle inspection,
                      liquor law enforcement, and other regulatory type activities of
                      police agencies (report at Police Protection, code 62); regulatory
                      and inspection activities related to other major functions, such
                      as fire inspections, health permits, water permits, and the like
                      (report at function involved);

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) This function applies solely to state and local government
                      expenditure; report any related Federal expenditure and all
                      employment data at Other and Unallocable, code 89.  (2) This
                      function is an "NEC" category; thus, report here only those
                      regulatory and inspection activities not recordable under
                      another major function.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                           General Purpose Governments             
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E66 Current operations........   N       .     .    .       .       N
           F66 Construction..............   N       .     .    .       .       N
           G66 Land & existing structures   N       .     .    .       .       N
           K66 Equipment.................   N       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L66 State.....................   N       N     N    .       .       N
           M66 Locals, NEC...............   N       .     .    .       .       N
           N66 General purpose locals....   N       .     N    N       N       N
           R66 Special districts.........   N       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            66(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 67            NAME: Federal Categorical Assistance Programs

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Public Welfare
                                     Cash Assistance Payments

          DEFINITION: Direct payments to beneficiaries under the Federal categorical
                      public assistance programs, Supplemental Security Income (SSI)
                      and Aid to Families with Dependent Children (AFDC); and inter-
                      governmental aid under the Federal Medicaid program.

            EXAMPLES: Cash payments (including state supplements) by Federal
                      Government to needy aged, blind, and disabled under the SSI
                      program; applicable cash benefits by states under SSI program in
                      excess of, or supplemental to, those paid by Federal Government;
                      state government reimbursements to the Federal Government to
                      supplement basic Federal SSI payment;  cash payments by states
                      to families under AFDC program, including related Emergency
                      Assistance aid; Federal grants to states for reimbursement of
                      AFDC and Medicaid benefits paid; intergovernmental payments to
                      finance locally-administered AFDC and Medicaid programs,
                      including any related amounts for administration and vendor
                      payments under those programs; intergovernmental payments to 
                      public hospitals for medical assistance (including Medicaid).

          EXCLUSIONS: Cash payments to needy persons under programs other than SSI
                      and AFDC (report at Other Cash Assistance, code E68);
                      intergovernmental payments to finance state- or locally-
                      administered assistance programs other than AFDC and Medicaid
                      (use code 68); state-only programs unrelated to SSI providing
                      cash grants to aged, blind, or disabled (use code 68); payments
                      directly to vendors of goods or services, including Medicaid
                      reimbursements to private hospitals (report at Vendor Payments,
                      codes E74/E75); direct administration of categorical assistance
                      programs (report at Other Public Welfare, code 79).
                 
          REFERENCES: <To be added later.>

         OTHER NOTES: (1) In 1974, the U.S. Congress replaced the former Federally-
                      funded, state-administered categorical assistance programs
                      (Old Age Assistance, Aid to the Blind, and Aid to the Disabled)
                      with the Supplemental Security Income Program.  The Federal
                      Government makes the direct cash benefits but states have the
                      option of making supplemental payments directly to individuals
                      (code E67) or to the Federal Government for increasing its basic
                      cash grant (code S67).  (2) Report any employment data related to
                      these programs at Other Public Welfare, code 79.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E67 Assistance and subsidies..   .       .     .    .       .       N
           I67 Assistance and subsidies..   .       N     N    N       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L67 State.....................   .       N     N    .       .       N
           M67 Locals, NEC...............   .       .     .    .       .       N
           N67 General purpose locals....   N       .     N    N       N       N
           S67 Federal Government........   N       .     .    .       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            67(0)-6/92 
         71

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 68            NAME: Other Cash Assistance Programs

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Public Welfare
                                     Cash Assistance Payments

     
          DEFINITION: Cash payments made directly to individuals contingent upon
                      their need, other than those under Federal categorical
                      assistance programs.

       
            EXAMPLES: Poor relief; general relief; home relief; emergency relief;
                      general assistance; refugee assistance; medical assistance,
                      housing expense relief, energy assistance (e.g., Federal Low
                      Income Home Energy Assistance Program, or LIHEAP), emergency
                      assistance, etc. paid directly to individuals and not to
                      vendors; other direct assistance to needy persons not covered
                      by or eligible for Federal categorical assistance; payments to
                      other governments in support of, or as reimbursement for costs
                      of, these types of assistance programs.

     
          EXCLUSIONS: Administration of such programs (report at Other Public Welfare,
                      code 79); cash payments made under Federal categorical
                      assistance programs (use code E67); payments made to vendors
                      rather than the individuals benefitted (report at Vendor
                      Payments, codes E74/E75); bonus payments to veterans as a
                      class and not contingent on their need (report at Veterans'
                      Bonuses, code E84); noncash or in-kind contributions--e.g.,
                      milk, cheese, clothing, etc. (report purchases of such items at
                      function of contributing agency).

     
          REFERENCES: <To be added later.>


         OTHER NOTES: Report any employment data related to these payments at Other
                      Public Welfare, code 79.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E68 Assistance and Subsidies..   N       .     .    .       .       N

              INTERGOVERNMENTAL, TO:                                                 

           M68 Locals, NEC...............   N       .     .    .       .       N
           N68 General purpose locals....   N       .     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.


                                                                            68(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 74            NAME: Vendor Payments for Medical Care

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Public Welfare
                                     Vendor Payments
     

          DEFINITION: Payments under public welfare programs made directly to private
                      vendors (i.e., individuals or nongovernmental organizations
                      furnishing goods and services) for medical assistance and
                      hospital or health care, including Medicaid (Title XIX), on
                      behalf of low-income or other medically-needy persons unable to
                      purchase such care.

       
            EXAMPLES: Payments to private vendors for: physician and other professional
                      medical services, private hospital care, drugs and medicines,
                      dental services, long-term health care (including hospices),
                      home health care, dialysis treatment, medical appliances (e.g.,
                      prostheses), ambulatory care, laboratory services, eyeglasses
                      and hearing aids, and so forth; premiums paid to insurers for
                      future medical costs of needy persons.  Includes all direct
                      payments to private hospitals or health care providers under
                      Medicaid, general relief, public assistance, and any other
                      Federal or state welfare program.


          EXCLUSIONS: Direct payments to benefitted persons themselves (report at Other
                      Cash Assistance Payments, code E68); administrative activities,
                      setting of provider fees and rates, establishing standards, etc.
                      (report at Other Public Welfare, code 79); intergovernmental
                      payments to other public hospitals for medical assistance under
                      public welfare programs (report payments from Medicaid funds at
                      Federal Categorical Assistance Programs, code 67, and payments
                      from all other funds at code 79); medical commodities, services,
                      or other assistance provided through government's own hospitals
                      or health agencies (report at Health, codes 28/32, or Own Hospi-
                      tals, codes 36/37); state payments to finance locally-administered
                      medical assistance (Medicaid) programs (report at code 67 [sic]);
                      premiums for health insurance coverage for government's employees
                      (report at function of paying agency or, if a government-wide
                      payment, at Other and Unallocable, code 89).


          REFERENCES: <To be added later.>


         OTHER NOTES: Report any employment data related to these payments at Other
                      Public Welfare, code 79).


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E74 Current operations........   N       .     .    .       .       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            74(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 75            NAME: Vendor Payments for Other Purposes

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Public Welfare
                                     Vendor Payments

     

          DEFINITION: Payments under public welfare programs made directly to
                      private vendors (i.e., individuals or nongovernmental
                      organizations furnishing goods and services) for services
                      and commodities, other than medical, hospital, and health
                      care, on behalf of low-income or other needy persons unable
                      to purchase such goods and services.

       

            EXAMPLES: Payments to private vendors for : funeral or burial services,
                      food, clothing, home heating fuel, weatherization of homes,
                      winter energy assistance, and the like.

     

          EXCLUSIONS: Direct payments to the benefitted persons themselves (report
                      at Other Cash Assistance Payments, code E68); administrative
                      activities related to payments (report at Other Public Welfare,
                      code 79); legal services and public defense including stipends
                      to court-appointed attorneys (report at Judicial and Legal,
                      code 25); reimbursements effected through tax credits for the
                      benefitted person (treat as a deduction to tax revenue);
                      commodities or other services and assistance provided through
                      a government's own agencies (report at function involved);
                      rent subsidies to landlords including "Section 8" lower income
                      housing assistance (report at Housing and Community Development,
                      code 50).

     
          REFERENCES: <To be added later.>


         OTHER NOTES: Report any employment data related to these payments at
                      Other Public Welfare, code 79.

    

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E75 Current operations........   N       .     .    .       .       N


          * Shows whether data are collected () or not collected (N) for that type.



                                                                            75(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 77            NAME: Welfare Institutions

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Public Welfare


          DEFINITION: Provision, construction, and maintenance of nursing homes
                      and welfare institutions owned and operated by a government
                      for the benefit of veterans or needy persons (contingent upon
                      their financial or medical need).


            EXAMPLES: Public nursing homes; veterans' homes; soldiers' homes;
                      orphanages; homes for the elderly or aged; indigent care
                      institutions (nonhospitals).


          EXCLUSIONS: Hospitals and institutions for the handicapped, crippled,
                      developmentally-disabled, veterans, etc. (report at Own
                      Hospitals, codes 36/37); institutions for the blind, deaf,
                      or other impairments primarily for education or training
                      (report at Other Education, code 21); provision of care of
                      needy persons in private institutions or homes (report at
                      Other Public Welfare, code 79); support of privately-operated
                      welfare facilities (use code 79); nursing homes directly
                      associated with a public hospital (use code 36); distinctive
                      educational services limited to needy persons--e.g., education
                      of orphans in schools (report at appropriate Education
                      function, codes 12-21).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) Effective with 1988 data, the classification of nursing
                      homes was clarified: henceforth, they were classed as a public
                      welfare function (unless directly associated with a public
                      hospital).  Previously, they may have been reported at Health,
                      Hospitals, or Public Welfare.  (2) This function includes direct
                      expenditures only--report any intergovernmental outlays at code
                      79.  (3) Report any employment data related to these activities
                      at Other Public Welfare, code 79.  (4) Refer to dependent agency
                      checklists for state and large city and county government insti-
                      tutions included in this function.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E77 Current operations........   N       .     .    .       .       N
           F77 Construction..............   N       .     .    .       .       N
           G77 Land & existing structures   N       .     .    .       .       N
           K77 Equipment.................   N       .     .    .       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            77(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 79            NAME: Other Public Welfare

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Public Welfare

          DEFINITION: Public employment for all public welfare activities and
                      expenditures for welfare activities not classified elsewhere.

            EXAMPLES: Administration of: medical and cash assistance, general relief,
                      vendor, and other welfare programs; regulation and support of
                      private welfare institutions and activities; all intergov-
                      ernmental payments for welfare other than for cash assistance
                      programs; children services, such as foster care, adoption, day
                      care, nonresidential shelters, and the like; activities supported
                      by Federal Social Services Block Grant (Title XX) funds; low-
                      income energy assistance and weatherization (except payments
                      directly to homeowners or vendors); welfare-related community
                      action programs; social services to the physically disabled,
                      such as transportation; temporary shelters and other services
                      for the homeless; intergovernmental payments to public hospitals
                      for medical assistance other than under the Medicaid program.

          EXCLUSIONS: Benefits not contingent upon need, such as bonuses or payments
                      to veterans as a class (use code E84), pensions to former
                      employees (use code X11), and the like; public defenders and
                      indigent legal defense (report at Judicial and Legal, code 25);
                      health and hospital care provided to needy or homeless through
                      government's own hospitals or health agencies and payments to
                      other governments for such purposes (report at appropriate Health
                      or Hospitals function); medical assistance paid directly to pri-
                      vate hospitals (use code E74) or to public hospitals under the
                      Medicaid program (use code 67); activities funded by Federal WIC
                      funds--Women, Infants, and Children (report at Health, code 32).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Report all employment data for public welfare here.
                      (2) Report all Federal Government public welfare activities
                      here (except for Federal Categorical Assistance Programs
                      reported at code 67).  (3) Report public hospital expenditures
                      from Medicaid funds at Own Hospitals, codes 36/37).

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E79 Current operations........   .       .     .    .       .       .
           I79 Assistance and subsidies..   .       N     N    N       N       N
           F79 Construction..............   .       .     .    .       .       .
           G79 Land & existing structures   .       .     .    .       .       .
           K79 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L79 State.....................   .       N     N    .       .       .
           M79 Locals, NEC...............   .       .     .    .       .       .
           N79 General purpose locals....   N       .     N    N       N       N
           R79 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            79(0)-6/92 
         70

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 80            NAME: Sewerage

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Sanitation


          DEFINITION: Provision, maintenance, and operation of sanitary and storm
                      sewer systems and sewage disposal and treatment facilities.


            EXAMPLES: Construction and maintenance of sanitary sewer lines; sewer
                      cleaning; lift or pump stations; sewage treatment plants;
                      water pollution control plants; storm drains that are not
                      connected with highway projects; systems for the collection
                      and disposal of storm runoff; and any intergovernmental
                      payments for such activities.


          EXCLUSIONS: Storm drains that are an integral part of highway projects
                      (report at either Regular Highways, code 44, or Toll Highways,
                      code 45); drainage for agricultural or other nonstreet purposes
                      (report Federal activities at Soil, Water, and Electric Energy
                      Resources, code 57, and state-local activities at Other Natural
                      Resources, code 59).

                 
          REFERENCES: <To be added later.>


         OTHER NOTES: (1) For combined water supply and sewer systems, include segre-
                      gable amounts related to sewage collection and disposal here and 
                      Water Supply activities at code 91.  (2) Prior to 1977 data, this
                      function applied only to local governments; effective with 1977
                      data, it was extended to cover state governments, whose activities
                      were reported previously at Other and Unallocable, code 89.
                      (3) For Federal Government, report grants to state and local
                      governments for wastewater treatment plant construction at code 89.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E80 Current operations........   N       .     .    .       .       .
           F80 Construction..............   N       .     .    .       .       .
           G80 Land & existing structures   N       .     .    .       .       .
           K80 Equipment.................   N       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L80 State.....................   N       N     N    .       .       .
           M80 Locals, NEC...............   N       .     .    .       .       .
           N80 General purpose locals....   N       .     N    N       N       N
           R80 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   N       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            80(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 81            NAME: Solid Waste Management

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Environment and Housing
                                   Sanitation


          DEFINITION: Collection, removal, and disposal of garbage, refuse, hazardous,
                      and other solid wastes; and cleaning of streets, alleys, and
                      sidewalks.


            EXAMPLES: Garbage collection; sanitary landfills; hazardous waste disposal
                      sites; incinerators; pyrolysis facilities; cleanup of toxic
                      chemical spills and dumps; collection and disposal of abandoned
                      vehicles; resource recovery authorities, including those which
                      cogenerate electricity or gas as a by-product; recycling centers;
                      Federal "Superfund" activities; cleaning and washing of streets;
                      and collection and disposal of street debris and trash.


          EXCLUSIONS: Distinctive amounts for snow and ice removal by a sanitation
                      agency (report at Highways, codes 44/45).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) Effective with 1988 data, this category was (a) expanded
                      to include the activities of the Federal and state governments,
                      formerly classed at Other and Unallocable, and (b) renamed from
                      "Sanitation other than Sewerage."  (2) The rationale for
                      including at this function waste or resource recovery facilities
                      that cogenerate gas or electricity is that their primary purpose
                      is disposing of wastes.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E81 Current operations........   .       .     .    .       .       .
           F81 Construction..............   .       .     .    .       .       .
           G81 Land & existing structures   .       .     .    .       .       .
           K81 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L81 State.....................   .       N     N    .       .       .
           M81 Locals, NEC...............   .       .     .    .       .       .
           N81 General purpose locals....   N       .     N    N       N       N
           R81 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   N       .     .    .       .       .


          * Shows whether data are collected () or not collected (N) for that type.


                                                                            81(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 84            NAME: Veterans' Bonuses

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Veterans' Services, NEC



          DEFINITION: Cash bonus payments to veterans and their survivors
                      awarded on the basis of military service rather than need.



            EXAMPLES: Bonus payments to war veterans; war bonus awards; war
                      veteran grants; cash bonuses to war vets and peacetime
                      crisis survivors.



          EXCLUSIONS: Administration of bonus programs (report at Other Veterans
                      Services, code 85); assistance-in-kind (report at function
                      of paying agency); grants for tuition, scholarships, job
                      training, or other education (report at Education, codes
                      19/20); grants for home improvements or acquisition (report
                      at Housing and Community Development, code 50); loans for
                      purchase or renovation of farms and homes (nonexpenditures);
                      interest on bonds issued to finance bonus payments (use code
                      I89); pension payments based on military or National Guard
                      service rather than as a former employee of the government
                      (report at Other and Unallocable, code 89).



          REFERENCES: <To be added later.>



         OTHER NOTES: (1) This function applies solely to state governments;
                      report any related Federal payments at code I85.  (2) No
                      intergovernmental expenditure or employment data are
                      associated with it.



         ------------DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION*------------
     
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                    

           E84 Assistance and Subsidies..   N            N    N       N       N   
                                                                               

          * Shows whether data are collected () or not collected (N) for that type.





                                                                            84(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 85            NAME: Other Veterans Services

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: Social Services and Income Maintenance
                                   Veterans' Services, NEC

          DEFINITION: Administration of veterans bonus payments and other veterans
                      services NOT classifiable under Public Welfare, Education,
                      Health, Hospitals, Social Insurance Administration, or any
                      other major function.

            EXAMPLES: Veterans' information and guidance services; claims represent-
                      ation; assistance in obtaining Federal and state benefits or
                      rights to which they are entitled; general veterans outreach
                      services; financial grants (other than bonuses) not contingent
                      on need; certification of training and education programs for
                      participation in Federal "GI bills" programs; administration
                      of VA home loans program.

          EXCLUSIONS: Services that can be classified under other major functions,
                      such as: veterans hospitals (report at Own Hospitals, codes
                      36/37), veterans or soldiers' retirement homes (report at
                      Public Welfare, codes 77/79), tuition assistance and scholar-
                      ships (use codes 19/20), and veterans health care (report at
                      Health, codes 28/32); cash bonuses for prior military service
                      (use code E84); grants for home improvements or acquisition
                      (report at Housing and Community Development, code 50); loans
                      for purchase or improvement of farms and homes (nonexpend-
                      itures); state distribution of Federal aid for veterans'
                      education to local governments (report at Other and Unallocable,
                      code 89); agency transactions to transmit Federal unemployment
                      benefits to veterans or Federal education funds to private
                      schools and individual veterans (nonexpenditures); state-local
                      defense activities like national guard, civil air patrol,
                      militia, etc. (use code 89).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) This function applies solely to Federal and state government
                      expenditures; report any related local expenditures and all
                      employment data at Other and Unallocable, code 89.  (2) Also,
                      this function includes direct expenditure only--report any
                      intergovernmental outlays at code 89.  (3) Report U.S. Depart-
                      ment of Veterans Affairs payments for veterans' compensation and
                      pensions at code I85.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E85 Current operations........   .       .     N    N       N       N
           I85 Assistance and subsidies..   .       N     N    N       N       N
           F85 Construction..............   .       .     N    N       N       N
           G85 Land & existing structures   .       .     N    N       N       N
           K85 Equipment.................   .       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            85(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 87            NAME: Water Transport and Terminals

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Transportation


          DEFINITION: Provision, construction, operation, maintenance, and support
                      of public waterways and harbors, docks, wharves, and related
                      marine terminal facilities; and the regulation of the water
                      transportation industry.


            EXAMPLES: Commercial port facilities, canals, harbors, and other public
                      waterways; dredging of same; public docks, piers, wharves,
                      warehouses, cranes, and associated terminal facilities;
                      regulatory and inspection of the commercial water transport-
                      ation industry.  For Federal Government also includes waterways
                      navigation activities of the Army Corps of Engineers, most of
                      the Maritime Administration, and the Panama Canal Commission.


          EXCLUSIONS: Recreational types of docks and marine facilities--e.g., public
                      marinas devoted to pleasure boaters (report at Parks and Recrea-
                      tion, code 61); terminals and dock facilities for public ferries
                      (if toll, report expenditures at Toll Highways, code 45, else
                      report expenditures and any employment at Regular Highways,
                      code 44).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) This category is devoted to commercial water transportation
                      and terminals rather than the provision of water-related activ-
                      ties and facilities for pleasure or recreation.  (2) For leased
                      facilities include only government's expenditures and employees
                      and exclude the lessees' expenditures and contractual employment.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E87 Current operations........   .       .     .    .       .       .
           I87 Assistance and subsidies..   .       N     N    N       N       N
           F87 Construction..............   .       .     .    .       .       .
           G87 Land & existing structures   .       .     .    .       .       .
           K87 Equipment.................   .       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L87 State.....................   .       N     N    .       .       .
           M87 Locals, NEC...............   .       .     .    .       .       .
           N87 General purpose locals....   N       .     N    N       N       N
           R87 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   .       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            87(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 89            NAME: Other and Unallocable

         SECTOR: General              APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: General Government, NEC

          DEFINITION: Activities which are not applicable to other general functions,
                      multifunctional, or unallocable by specific function.

            EXAMPLES: TO THE EXTENT NOT ALLOCABLE TO OTHER FUNCTIONS: State-local
                      military activities (militia, National Guard, armories, civil
                      defense, etc.); lump-sum contributions for employee benefits
                      (retirement, unemployment and workers' compensation, health and
                      life insurances, etc.) other than transfers to own insurance
                      trusts; premiums for government-wide fire, auto, liability, and
                      other such insurances; judgements and compensation for injury to
                      persons or property; central service agencies (e.g., public works,
                      motor pools, communications) other than financial administration
                      and government-wide executive services; administration of multi-
                      functional agencies; purchase of computer equipment for govern-
                      ment-wide use; economic development; voter registration and
                      elections; job training and employment programs (e.g., JPTA);
                      programs for senior citizens not based on need; crime victim
                      compensation; recorded losses on sale of investments (except
                      insurance trusts); refund  of receipts reported as revenue in
                      prior fiscal years (other than taxes); activities for which a
                      specific function is not applicable to that type of government
                      (e.g., expenditure for state parking facilities or local veterans
                      offices and employment for protective inspection and regulation, NEC).

          EXCLUSIONS: State aid payments unrestricted in use or purpose (report at
                      General Local Government Support, code 30); refund of taxes
                      reported as revenue in prior fiscal years (deduct from this
                      year's tax revenue); lump-sum contributions for employee benefits
                      to insurance trusts administered by same government (interfund
                      transfers); comprehensive planning and zoning (report at Central
                      Staff Services, code 29).

          REFERENCES: <To be added later.>

         OTHER NOTES: In publications, "Other and Unallocable" will vary in meaning
                      depending on the level of functional detail in table.

         ------------DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION*------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                    
           E89 Current Operations........   .       .     .    .       .       .   
           J89 Assistance and subsidies..   .       N     N    N       N       N    
           F89 Construction..............   .       .     .    .       .       .    
           G89 Land & existing structures   .       .     .    .       .       .  
           K89 Equipment.................   .       .     .    .       N       N  

              INTERGOVERNMENTAL, TO:
           L89  State....................   .       N     N    .       .       .    
           M89  Locals, NEC..............   .       .     .    .       .       .    
           N89  General purpose locals...   N       .     N    N       N       N    
           R89  Special districts........   N       .     N    N       N       N    
           S89  Federal Government.......   N       .     .    .       N       N    
                                                                                
          EMPLOYMENT DATA................   .       .     .    .       .       .   

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            89(0)-6/92 
          70

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: I89           NAME: Interest on General Debt

         SECTOR: General              APPLIES TO: Finance |X|      Employment | | 

         PUBLICATION CATEGORIES: <None>



          DEFINITION: Amounts paid for use of borrowed monies, except those on utility
                      debt, paid by all funds of the government.



            EXAMPLES: Interest on both short- and long-term debt for nonutility
                      purposes, whether general obligation or nonguaranteed, including
                      public debt for private purposes and debt to cover deficits of
                      unemployment compensation or other insurance trust funds.



          EXCLUSIONS: Interest on debt for utilities (report at Utilities interest
                      codes, I91-I94); premiums paid on debt retired (report at Other
                      and Unallocable, code E89, for general debt and at codes E91-E94
                      for Utilities debt); Federal Government interest payments on own
                      securities held by its insurance trusts (nonexpenditures).



          REFERENCES: <To be added later.>



         OTHER NOTES: (1) Make no adjustment to interest expenditure for premiums
                      or discounts on debt issued or retired.  (2) Due to the difficulty
                      of tracing such payments, do not deduct from interest expenditure
                      any state or local government interest payments on own securities
                      held by their employee retirement funds.  (3) Deduct from interest
                      expenditure for the year in which they were received the following
                      amounts: funds included in the proceeds from debt issues to cover
                      interest accrued on debt prior to its sale.  (4) The distinction
                      between general interest and utility interest is determined by
                      the classification of the outstanding debt which generated the
                      interest payment.  (5) No employment data are associated with
                      this code.




         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           I89 Interest on general debt..   .       .     .    .       .       .


          * Shows whether data are collected () or not collected (N) for that type.


                                                                           I89(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: 90            NAME: Liquor Stores

         SECTOR: Liquor Stores        APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Liquor Stores


          DEFINITION: Establishment and operation of alcoholic beverage distribution
                      facilities and retail outlets owned and operated by 17 states
                      and by local governments in a few states.


            EXAMPLES: Alcoholic beverage monopolies; ABC stores; liquor control
                      boards; state liquor stores.


          EXCLUSIONS: Law enforcement, licensing, and regulation of private liquor
                      outlets carried out in conjunction with liquor store operations
                      (report licensing at Financial Administration, code 23,
                      regulation and enforcement at Protective Inspection and
                      Regulation, NEC, code 66, and law enforcement handled by regular
                      police forces at Police Protection, code 62); collection of
                      liquor taxes and licenses (use code 23); transfer of profits or
                      surplus earnings to parent government (an internal transfer);
                      state distribution of earnings to local governments (if
                      undesignated in purpose report at General Local Government
                      Support, code 30, else report at function involved).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) Expenditures related only to amounts for purchase of goods
                      for resale and for provision and operation of stores, warehouses,
                      and related facilities (including administration and capital
                      improvements).  (2) Report expenditures without deducting cost
                      of goods sold or operating expenses.  (3) See Chapter 12 for
                      discussion of special exhibit codes for liquor stores.
                      (4) Includes direct expenditures only--report any related
                      intergovernmental outlays at Other and Unallocable, code 89.
                      (5) For employment data, applies only to state governments.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      

           E90 Current operations........   N       .     N    .       .       N
           F90 Construction..............   N       .     N    .       .       N
           G90 Land & existing structures   N       .     N    .       .       N
           K90 Equipment.................   N       .     N    .       N       N

          EMPLOYMENT DATA................   N       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            90(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 91            NAME: Water Supply

         SECTOR: Utilities            APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Utilities

          DEFINITION: Operation, maintenance, and construction of public water supply
                      systems, including production, acquisition, and distribution of
                      water to general public or to other public or private utilities,
                      for residential, commercial, and industrial use.

            EXAMPLES: Dams and reservoirs expressly for water supply; purification and
                      filtration plants; pumping stations; aqueducts and transmission
                      systems; water storage tanks; purchase of water for resale;
                      distribution lines and meters.

          EXCLUSIONS: Contributions to parent government; purchase of water for other
                      than resale and provision of water to parent government (report,
                      where identifiable, at function involved); facilities owned but
                      leased to other governments or persons without financial oversight
                      (report at Miscellaneous Commercial Activities, code 03);
                      depreciation of assets; activities not directly related to utility
                      operations, such as administration of utility debt or investments
                      (report at Financial Administration, code 23) and payments-in-
                      lieu-of-taxes; benefits paid to utility employees by employee
                      retirement systems (use code X11); acquisition and distribution of
                      water for irrigation (report at Other Natural Resources, code 59).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Relates only to systems owned and operated by a government
                      or managed by private contractor when government maintains
                      day-to-day financial oversight (e.g., by directly paying utility
                      employees).  (2) Prior to 1977 data, this function applied only to
                      local governments.  Effective with 1977 data, it was extended to
                      cover state governments, whose activities were reported previously
                      at code 03.  (3) For combined water-sewer systems, include
                      segregable amounts related to water supply here (report Sewerage
                      activities at code 80).  (4) Intergovernmental expenditure codes
                      were added, effective with 1988 data, for users who seek to
                      identify certain utility transactions already classed as general
                      intergovernmental expenditure, such as state grants for local
                      purification plants.  In publications, however, these amounts will
                      continue to be treated as general expenditures despite their
                      utility suffix; utility expenditures will continue to exclude
                      them and to represent direct outlays only.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E91 Current operations........   N       .     .    .       .       .
           I91 Interest on debt..........   N       .     .    .       .       .
           F91 Construction..............   N       .     .    .       .       .
           G91 Land & existing structures   N       .     .    .       .       .
           K91 Equipment.................   N       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L91 State.....................   N       N     N    .       .       .
           M91 Locals, NEC...............   N       .     .    .       .       .
           N91 General purpose locals....   N       .     N    N       N       N
           R91 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   N       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            91(0)-6/92 
          73

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 92            NAME: Electric Power

         SECTOR: Utilities            APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Utilities

          DEFINITION: Operation, maintenance, and construction of public electric power
                      systems, including production, acquisition, and distribution of
                      electricity to general public or to other public or private
                      utilities, for residential, commercial, and industrial use.

            EXAMPLES: Generating stations; power plants; transmission lines; switching
                      stations; pollution abatement equipment; purchase of electricity
                      for resale; distribution lines and meters.

          EXCLUSIONS: Contributions to parent government; purchase of electricity for
                      other than resale and provision of electricity to parent govern-
                      ment, such as for street lights (report, where identifiable, at
                      function involved); facilities owned but leased to other govern-
                      ments or persons without financial oversight (report at Miscell-
                      aneous Commercial Activities, code 03);  depreciation of assets;
                      activities not directly related to utility operations, such as
                      administration of utility debt or investments (report at Financial
                      Administration, code 23) and payments-in-lieu-of-taxes; benefits
                      paid to utility employees by employee retirement systems (use code
                      X11); waste or resource recovery facilities which cogenerate
                      electricity as a by-product (report at Solid Waste Management,
                      code 81).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Relates only to systems owned and operated by a government
                      or managed by private contractor when government maintains
                      day-to-day financial oversight (e.g., by directly paying utility
                      employees).  (2) Prior to 1977 data, this function applied only to
                      local governments.  Effective with 1977 data, it was extended to
                      cover state governments, whose activities were reported previously
                      at code 03.  (3) Intergovernmental expenditure codes were added,
                      effective with 1988 data, for users who seek to identify certain
                      utility transactions already classed as general intergovernmental
                      expenditure, such as support of joint power projects (a complex
                      topic discussed in Chapters 6 and 8).  In publications, however,
                      these amounts will continue to be treated as general expenditures
                      despite their utility suffix; utility expenditures will continue
                      to exclude them and to represent direct outlays only.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E92 Current operations........   N       .     .    .       .       .
           I92 Interest on debt..........   N       .     .    .       .       .
           F92 Construction..............   N       .     .    .       .       .
           G92 Land & existing structures   N       .     .    .       .       .
           K92 Equipment.................   N       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L92 State.....................   N       N     N    .       .       .
           M92 Locals, NEC...............   N       .     .    .       .       .
           N92 General purpose locals....   N       .     N    N       N       N
           R92 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   N       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.


                                                                            92(0)-6/92
            73 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 93            NAME: Gas Supply

         SECTOR: Utilities            APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Utilities

          DEFINITION: Operation, maintenance, and construction of public natural gas
                      supply systems, including production, acquisition, and distrib-
                      ution of gas to general public or to other public or private
                      utilities, for residential, commercial, and industrial use.

            EXAMPLES: Public gas works; liquefaction equipment; pumping stations; gas
                      mains; service lines and meters; purchase of natural gas for resale.

          EXCLUSIONS: Contributions to parent government; purchase of gas for other
                      than resale and provision of gas to parent government, such
                      as for incinerators (report, where identifiable, at function
                      involved); facilities owned but leased to other governments or
                      persons without financial oversight (report at Miscellaneous
                      Commercial Activities, code 03);  depreciation of assets;
                      activities not directly related to utility operations, such as
                      administration of utility debt or investments (report at Financial
                      Administration, code 23) and payments-in-lieu-of-taxes; benefits
                      paid to utility employees by employee retirement systems (use
                      code X11); waste or resource recovery facilities which cogenerate
                      gas as a by-product (report at Solid Waste Management, code 81).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Relates only to systems owned and operated by a government
                      or managed by private contractor when government maintains
                      day-to-day financial oversight (e.g., by directly paying utility
                      employees).  (2) Prior to 1977 data, this function applied only to
                      local governments.  Effective with 1977 data, it was extended to
                      cover state governments; however, no state gas supply systems
                      existed until 1987.  (3) Intergovernmental expenditure codes were
                      added, effective with 1988 data, for users who seek to identify
                      certain utility transactions already classed as general intergov-
                      ernmental expenditure (examples being rare for gas supply systems).
                      In publications, however, these amounts will continue to be treated
                      as general expenditures despite their utility suffix; utility
                      expenditures will continue to exclude them and to represent
                      direct outlays only.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E93 Current operations........   N       .     .    .       .       .
           I93 Interest on debt..........   N       .     .    .       .       .
           F93 Construction..............   N       .     .    .       .       .
           G93 Land & existing structures   N       .     .    .       .       .
           K93 Equipment.................   N       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L93 State.....................   N       N     N    .       .       .
           M93 Locals, NEC...............   N       .     .    .       .       .
           N93 General purpose locals....   N       .     N    N       N       N
           R93 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   N       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            93(0)-6/92 
           70 !!!!!!!!!!!!!!!

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: 94            NAME: Public Mass Transit Systems

         SECTOR: Utilities            APPLIES TO: Finance |X|      Employment |X| 

         PUBLICATION CATEGORIES: Utilities

          DEFINITION: Operation, maintenance, and construction of public mass transit
                      systems, including subways, surface rails, and buses.

            EXAMPLES: Rapid transit; subways, surface rail, and street railroad systems;
                      commuter rail lines; trolleys and light rail; related stations,
                      tracks, depots, and railyards; acquisition of right-of-ways;
                      transit police employed directly by utility; subsidies to public
                      mass transit systems (but not private ones); buses.

          EXCLUSIONS: Systems solely to transport students (report at Elementary and
                      Secondary Education, code 12); ferries (if free, report at Regular
                      Highways, code 44, else report at Toll Highways, code 45); systems
                      exclusively for handicapped or senior citizens (report at Other
                      Public Welfare, code 79); subsidies for private mass transit
                      systems (report at Transit Subsidies, code E47); contributions to
                      own system (use exhibit code Z61); systems owned but operated
                      under private contract without financial oversight (report at
                      Miscellaneous Commercial Activities, code 03); depreciation of
                      assets; activities not directly related to utility operation, such
                      as administration of utility debt (report at Financial Adminis-
                      tration, code 23) and payments-in-lieu-of-taxes; benefits paid to
                      utility employees by employee retirement systems (use code X11).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) Relates only to systems owned and operated by a government
                      or managed by private contractor when government maintains
                      day-to-day financial oversight (e.g., by directly paying utility
                      employees).  (2) Prior to 1977 data, this function applied only to
                      local governments.  Effective with 1977 data, it was extended to
                      cover state governments, whose activities were reported previously
                      at code 03.  (3) Intergovernmental expenditure codes were added,
                      effective with 1988 data, for users who seek to identify certain
                      utility transactions already classed as general intergovernmental
                      expenditure, such as subsidies to public transit systems
                      (previously reported at code 47).  In publications, however,
                      these amounts will continue to be treated as general expenditures
                      despite their utility suffix; utility expenditures will continue
                      to exclude them and to represent direct outlays only.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           E94 Current operations........   N       .     .    .       .       .
           I94 Interest on debt..........   N       .     .    .       .       .
           F94 Construction..............   N       .     .    .       .       .
           G94 Land & existing structures   N       .     .    .       .       .
           K94 Equipment.................   N       .     .    .       N       N

              INTERGOVERNMENTAL, TO:                                                 
           L94 State.....................   N       N     N    .       .       .
           M94 Locals, NEC...............   N       .     .    .       .       .
           N94 General purpose locals....   N       .     N    N       N       N
           R94 Special districts.........   N       .     N    N       N       N

          EMPLOYMENT DATA................   N       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                            94(0)-6/92 
           72

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: X1-           NAME: Public Employee Retirement Systems

         SECTOR: Insurance Trusts     APPLIES TO: Finance |X|      Employment | |

         PUBLICATION CATEGORIES: Insurance Trusts

          DEFINITION: Distribution of cash benefits or withdrawals to eligible persons
                      under government-administered employee retirement systems
                      covering public employees.

            EXAMPLES: Benefits: Cash payments to, or on behalf of, participants for
                      retirement benefits and annuities, death and disability benefits,
                      life and disability insurance on behalf of retirees, pre-retire-
                      ment death benefit premiums, benefits due on termination of
                      employment, survivors benefits, and other benefits as allowed.
                      Withdrawals: Cash benefits to employees, former employees, or
                      their survivors as return of contributions made by employees and
                      any interest on such amounts.  Includes transfers of investment
                      holdings and reimbursements for benefits paid when another pension
                      fund assumes responsibility for paying retirement benefits.
                      Other Payments: Exhibit-only code for administering retirement
                      system or managing its assets (also report at Financial Adminis-
                      tration, code 23); recorded losses on investments (also deduct
                      from Interest on Investments, code X08); other costs or payments
                      not representing benefits or withdrawals (except purchase of
                      investments).

          EXCLUSIONS: Payments to own retirement system (interfund transfer); payments
                      to retirement plans administered by another government, such as
                      Federal Social Security and local payments to state-administered
                      retirement systems; payments of premiums for annuity policies
                      from private insurance carriers; contributions to pension plans
                      administered by private companies or by public employee assoc-
                      iations; "pay-as-you-go" pensions and other direct payments to
                      retired employees from current appropriations (report preceding
                      items as current operations expenditure of function involved);
                      pensions paid out of Federal Military Retirement Fund (use code
                      06); purchase of investments, loans to members, unrealized, loss
                      in market value of securities, and amortization of premiums on
                      purchase of investments (all of which are nonexpenditures).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) These data are collected by a separate mail canvass survey
                      of state and local government-administered public employee retire-
                      ment systems.  (2) For Federal Government includes Civil Service
                      and Foreign Service Retirement and Disability Funds and Federal
                      Employees' Retirement System (FERS).  (3) Record state aid to
                      local retirement systems which does not represent employer contri-
                      butions at Other and Unallocable, code E89.  Since the local
                      systems treat this aid as an insurance trust revenue, recording
                      the state payment as an intergovernmental expenditure would
                      distort the intergovernmental flow for that state.  (4) Report
                      employment data for administering these systems at code 23.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           X11 Benefits..................   .       .     .    .       .       .
           X12 Withdrawals...............   N       .     .    .       .       .

          EXHIBIT-ONLY CODE:                                                 
           X14 Other payments............   N       .     .    .       .       .

          * Shows whether data are collected () or not collected (N) for that type.

                                                                           X1-(0)-6/92 
            73

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: Y0-           NAME: Unemployment Compensation Systems

         SECTOR: Insurance Trusts     APPLIES TO: Finance |X|      Employment | |

         PUBLICATION CATEGORIES: Insurance Trusts


          DEFINITION: Distribution of cash benefits to eligible persons under the
                      cooperative Federal-state unemployment compensation insurance
                      programs.


            EXAMPLES: Regular Benefits: Covers basic payments to individuals temporarily
                      out of work and seeking employment (funded by state payroll taxes)
                      and to former Federal civilian and military employees (funded by
                      Federal agencies that employed them). Extended and Special
                      Benefits: Payments for extended unemployment benefits in states
                      with high rates of unemployment (funded equally by Federal and
                      state payroll taxes); benefits under special programs, such as
                      trade adjustment assistance and disaster assistance (funded by
                      Federal appropriations); and benefits to special groups of former
                      workers, such as railroad employees (funded by Federal tax on
                      railroad payrolls).


          EXCLUSIONS: Administration of unemployment insurance programs (report at
                      Social Insurance Administration, code 22); employment services
                      provided to the unemployed, such as job training, placement,
                      and guidance (use code 22); government payments as employer
                      contributions on behalf of its employees to unemployment insurance
                      system of another government (report as current operation of
                      function involved) or to one it administers (interfund transfer);
                      distinctive sickness or disability insurance programs carried
                      out in conjunction with unemployment programs (generally, report
                      at Other Insurance Trusts, code Y5-).


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) Data for this function are obtained from the Employment
                      and Training Administration of the U.S. Department of Labor.
                      (2) Report employment data for administering these programs
                      at code 22.  (3) This function applies solely to the Federal
                      and state governments and to the District of Columbia.  (3) For
                      Federal Government includes only Railroad Unemployment Insurance
                      Program.  (4) See Chapter 11 for a description of how the coop-
                      erative Federal-state unemployment insurance system operates.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           Y05 Benefits..................   .       .     .    N       N       N
           Y06 Extended and Special
                 Benefits................   N       .     .    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.


                                                                           Y0-(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: Y1-           NAME: Workers' Compensation Systems

         SECTOR: Insurance Trusts     APPLIES TO: Finance |X|      Employment | |

         PUBLICATION CATEGORIES: Insurance Trusts


          DEFINITION: Distribution of cash benefits to eligible persons under state-
                      administered plans for compulsory accident and injury insurance
                      of workers.


            EXAMPLES: Benefits: Claims paid directly to, or on behalf of, injured
                      beneficiaries for compensation of wages lost, medical care,
                      rehabilitation, funeral expenses, and other eligible benefits.
                      Includes payments made from regular workers' compensation funds
                      as well as from subsequent injury funds, second injury funds,
                      and the like.  Other Payments: Exhibit-only code for
                      administration of workers' compensation systems including
                      adjudication of claims (also report at Financial Administration,
                      code 23); recorded losses on investments (also deduct from Other
                      Investment Earnings, code Y13); other costs or payments not
                      representing benefits (except purchase of investments).



          EXCLUSIONS: Local government payments to state systems (report as local
                      current operation expenditure of function involved); state
                      government payments to system on behalf of its employees
                      (interfund transfer); crime victim compensation benefits
                      administered by a workers' compensation agency (report at Other
                      and Unallocable, code 89); "pay-as-you-go" workers' compensation
                      programs and other direct payments from current appropriations
                      (report at function of paying agency); purchase of investments.
                      Exclude administrative costs from benefits and report them at
                      both codes Y15 and 23.


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) These data are collected by a separate mail canvass of state
                      workers' compensation systems.  (2) Report state employment data
                      for administering these systems at code 23.  (3) This function
                      applies solely to state governments.  Both the Federal Government
                      and the District of Columbia have noninsurance, "pay-as-you-go"
                      plans.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           Y14 Benefits and Withdrawals..   N       .     N    N       N       N

          EXHIBIT-ONLY CODE:                                                 
           Y15 Other payments............   N       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                           Y1-(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
         FUNCTION CODE: Y25           NAME: Social Security and Medicare Insurances

         SECTOR: Insurance Trusts     APPLIES TO: Finance |X|      Employment | |

         PUBLICATION CATEGORIES: Insurance Trusts


          DEFINITION: Distribution of cash benefits to eligible persons under Federal-
                      administered retirement, disability, hospital, and health social
                      insurance programs.

            EXAMPLES: Comprises cash benefits: to retirees or their dependents and
                      survivors from the Federal Old-Age and Survivors Insurance Trust
                      Fund (OASI); to disabled workers or their dependents from the
                      Federal Disability Insurance Trust Fund (DI); to elderly or
                      disabled for hospital, nursing home, and other related care from
                      the Federal Hospital Insurance Trust Fund (HI); and to such
                      persons for physician services, outpatient care, renal dialysis,
                      and other health care from the Federal Supplementary Medical
                      Insurance Trust Fund (SMI).  The OASI and DI funds are adminis-
                      tered by the Department of Health and Human Services' (HHS)
                      Social Security Administration (SSA) wile the HI and SMI funds
                      are operated by HHS' Health Care Financing Administration (HCFA).

          EXCLUSIONS: Governmental contributions as employer for Social Security and
                      Medicare on behalf of its employees (report as current operation
                      expenditure of function involved); Federal transfers to these
                      Social Security or Health Care trust funds; transfers from Social
                      Security Trust Funds to the railroad retirement accounts;
                      interest payments on inter-trust borrowings (the preceding three
                      are nonexpenditures); administration of these insurance trust
                      funds (report at Social Insurance Administration, code 22);
                      payments of HCFA for Medicaid program (report at Federal Catego-
                      rical Assistance Programs, code 67); payments of SSA other than
                      for the Social Security Trusts, such as SSI and AFDC (use code
                      67) and black lung benefits, child support enforcement, low
                      income energy assistance, etc. (report at Other Public Welfare,
                      code 79).

          REFERENCES: <To be added later.>

         OTHER NOTES: (1) This function applies soley to Federal Government expenditure;
                      report any related employment data at code 22.  (2) The OASI and
                      DI trusts comprise what is commonly referred to as Social
                      Security.  The HI and SMI trusts comprise what is commonly
                      referred to as Medicare, Parts A and Part B, respectively.
                      (3) In contrast to public welfare programs funded by appropri-
                      ations and classed as general expenditure, these social insurance
                      programs all have separate trust funds with dedicated revenues
                      (either payroll taxes or voluntary premiums).  See definition of
                      social insurance trust system in Chapter 11.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           Y25 Benefits..................   .       N     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.

                                                                           Y25(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: Y34           NAME: Veterans' Life Insurance (Federal only)

         SECTOR: Insurance Trusts     APPLIES TO: Finance |X|      Employment | |

         PUBLICATION CATEGORIES: Insurance Trusts



          DEFINITION: Distribution of cash benefits and dividends to eligible veterans
                      and their beneficiaries under Federal-administered veterans'
                      life insurance programs.



            EXAMPLES: Death claims to beneficiaries; cash values of surrendered
                      policies; distribution of excess earnings and related interest
                      (dividends); disability claims or income payments under veterans'
                      life insurance policies; and matured endowments.  Comprises
                      activities of National Service Life Insurance Fund as well as
                      the Veterans Special Life Insurance Fund, Veterans Reopened
                      Insurance Fund, US Government Life Insurance Fund, and others
                      administered by the U.S. Department of Veterans Affairs.



          EXCLUSIONS: Loans to policyholders borrowing against cash value of their
                      policies; Federal Government contributions to these funds;
                      purchase of securities (the preceding are nonexpenditures);
                      Federal payments as employer contributions for group life
                      insurance for its employees (report as current operation expend-
                      iture of function involved); administration of these life
                      insurance programs (report at Other Veterans Services, code 85);
                      and burial benefits not paid out of veterans' life insurance
                      funds (use code 85).



          REFERENCES: <To be added later.>



         OTHER NOTES: This function applies soley to Federal Government expenditure;
                      report any related employment data at Other and Unallocable,
                      code 89.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           Y34 Benefits..................   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.




                                                                           Y34(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: Y45           NAME: Railroad Retirement (Federal only)

         SECTOR: Insurance Trusts     APPLIES TO: Finance |X|      Employment | |

         PUBLICATION CATEGORIES: Insurance Trusts



          DEFINITION: Distribution of cash annuities and benefits to eligible retirees
                      and their survivors under Federal-administered rail industry
                      pension programs.



            EXAMPLES: Annuities for retirement, disability, survivor, occupational
                      disability, and supplemental benefits; and social security
                      equivalent benefits.  Comprises activities of the Rail Industry
                      Pension Fund and Railroad Social Security Equivalent Benefit
                      Account, both administered by the U.S. Railroad Retirement
                      Board.



          EXCLUSIONS: Federal payments (transfers) to the railroad retirement accounts;
                      Federal Old-Age and Survivors Insurance Trust Fund payments to
                      the railroad retirement accounts; purchase of securities (the
                      preceding are nonexpenditures); benefits from related Railroad
                      Unemployment Insurance Fund (report at Unemployment Compensation
                      Benefits, code Y05); and administration of railroad retirement
                      program and railroad unemployment insurance fund (report at
                      Social Insurance Administration, code 22).



          REFERENCES: <To be added later.>



         OTHER NOTES: (1) This function applies soley to Federal Government expenditure;
                      report any related employment data at Social Insurance Adminis-
                      tration, code 22).  (2) Unlike public employee retirement systems,
                      this category covers private sector workers rather than public
                      employees.



         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           Y45 Benefits..................   .       N     N    N       N       N


          * Shows whether data are collected () or not collected (N) for that type.





                                                                           Y45(0)-6/92 

         ----------------------------------------------------------------------------- 
                            DESCRIPTIONS OF FUNCTIONAL CATEGORIES                   
         ----------------------------------------------------------------------------- 
    
         FUNCTION CODE: Y5-           NAME: Other State Insurance Trust Systems

         SECTOR: Insurance Trusts     APPLIES TO: Finance |X|      Employment | |

         PUBLICATION CATEGORIES: Insurance Trusts


          DEFINITION: Distribution of cash benefits to eligible persons under state-
                      administered plans for compulsory or voluntary social insurance
                      programs not elsewhere classified,


            EXAMPLES: Benefits: Claims paid directly to, or on behalf of, beneficiaries
                      for lost income, medical care, disaster reimbursement, and other
                      eligible expenses.  Other Payments: Exhibit-only code for
                      administration of insurance plans (also report at Financial
                      Administration, code 23); recorded losses on investments (also
                      deduct from Other Investment Earnings, code Y55); other costs or
                      payments not representing benefits (except purchase of
                      investments).


          EXCLUSIONS: Local government payments to state systems (report as local
                      current operation expenditure of function involved); state
                      government payments to own insurance trusts (interfund transfer);
                      purchase of investments; self-insurance, risk management,
                      insurance against fire or other hazards, and other types of
                      non-social insurance (generally, report at Other and Unallocable,
                      code 89); payments on group health, life, or other fringe benefit
                      insurance plans for its employees (report at function involved or
                      at code 89).  Exclude administrative costs from benefits and
                      report them both at codes Y54 and 23.


          REFERENCES: <To be added later.>


         OTHER NOTES: (1) At this writing, only seven states operate other insurance
                      trust systems: four for disability insurance and one each
                      for medical disaster insurance, life insurance, and automobile
                      liability insurance.  (2) These data are collected by a separate
                      mail canvass survey of state insurance trust systems.  (3) Report
                      state employment data for administering these systems at code 23.
                      (4) See Chapter 11 for a definition of a social insurance trust
                      system.


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
    
                                            General Purpose Governments            

                                                             Large                  
                                                             city-   Other  Special
                                         Federal  State  DC  county  local  district
          EXPENDITURES, DIRECT:                                                      
           Y53 Benefits and Withdrawals..   N       .     N    N       N       N

          EXHIBIT-ONLY CODE:                                                 
           Y54 Other payments............   N       .     N    N       N       N

          * Shows whether data are collected () or not collected (N) for that type.


                                                                           Y5-(0)-6/92 

             CHAPTER 5.  PUBLIC EMPLOYMENT AND PAYROLL STATISTICS 


       Contents and Abstract: 

       5.1 Background 

       5.2 Basic Concepts and Definitions 
        5.21 Employees/Employment 
        5.22 Full-Time vs Part-Time Employees 
        5.23 Payrolls 
        5.24 Hours Worked by Part-Time Workers 
        
       5.3 Derived Employment Statistics 
        5.31 Full-Time Equivalent Employment 
        5.32 October 1986 Revision to Full-Time Equivalent Calculation
             Method 
        5.33 Average October Earnings 

       5.4 Functional Categories Unique to Employment Survey 
         
       5.5 Special Topics During Census of Governments 

       Chart: 
        
        5-A Functional Categories Applicable to Employment Data 


       Governments play an important part in the national economy, not
       the least of which is their role as employers.  While only 22
       percent of government expenditures went directly toward salaries
       and wages during fiscal year 1990, Federal, state and local
       government employees accounted for 15 percent of the total labor
       force in 1988. 

       The purpose of the employment survey is to measure the number of
       public employees and their payrolls at a point in time (i.e.,
       October) according to a detailed cross-classification by function
       and type of employee (full- or part-time).  During the periodic
       census of governments, the Bureau often gathers additional data,
       such as on labor management relations and the costs of employee
       benefits. 


       5.1 Background 


       As described in Chapter Two, the Census Bureau first collected
       data on state and local government employment and payrolls in
       1940.  The Department of Labor now conducts monthly surveys of
       public employment; the Bureau continues to compile detailed
       statistics on an annual basis. 

       The employment survey shares many of the same concepts as the
       finance survey: the individual government as its focus; the broad
       definition of a government to include dependent agencies; and the
       functional categories.  Thus, many of the sections elsewhere in
       this manual apply equally to employment data. 


       5.2 Basic Concepts and Definitions 


       Employment and payroll data pertain to the month of October1.  At
       present, data are collected for the one pay period that includes
       October 12 (regardless of the period's length).  As described in
       Section 5.23, payroll data are converted to a monthly figure for
       publication purposes. 

       Discussed below are the basic concepts and definitions that apply
       only to employment statistics. 


       5.21 Employees/Employment 


       Employment refers to all persons gainfully employed by and
       performing services for a government.  Employees include all
       persons paid for personal services performed from all sources of
       funds, including persons paid from Federally-funded programs,
       paid elected officials, persons in a paid leave status, and
       persons paid on a per meeting, annual, semiannual, or quarterly
       basis. 

       Excluded from employment statistics are unpaid officials,
       pensioners, persons whose work is performed on a fee basis, and
       contractors and their employees. 


       5.22 Full-Time vs Part-Time Employees 


       The classification of an employee as full- or part-time is
       determined by the standard used by the reporting government
       itself; that is: 

          Full-time employees are defined to include those persons whose
          hours of work represent full-time employment in their employer
          government. 

          Part-time employees are those persons who work less than the
          standard number of hours for full-time work in their employer
          government.


       5.23 Payrolls 


       Payroll amounts are gross payrolls for the one-month period of
       October.  Gross payrolls includes all salaries, wages, fees,
       commissions, bonuses, or awards paid to employees before
       withholdings for taxes, insurance, etc.  It excludes employer
       share of fringe benefits like retirement, Social Security, health
       and life insurance, etc. 

       Data collected for the one pay period that includes October 12
       are converted to monthly figures using the following conversion
       factors: 


           Frequency of Pay Period       Conversion Factor 
           -------------------------      ----------------- 
                    Weekly                      4.429 
                   Biweekly                     2.214 
                 Twice a month                  2.000 
                    Monthly                     1.000 

        
       5.24 Hours Worked by Part-Time Workers 


       First collected during the October 1986 survey, these data
       represent the number of hours worked by part-time employees
       during the pay period.  Note that these data are not collected
       for publication but rather are used to calculate full-time
       equivalent employment data (see section 5.31).


       5.3 Derived Employment Statistics 


       From the employment data collected from state and local
       governments, the Census Bureau computes certain derived
       statistics, as follows: 


       5.31 Full-Time Equivalent Employment 


       Full-time equivalent employment is a derived statistic that
       provides an estimate of a government's total full-time employment
       by converting part-time employees to a full-time amount.  To the
       actual number of full-time employees reported is added the number
       of employees that could have been employed if the reported number
       of hours worked by part-time employees had been worked by full-
       time employees instead. 

       This statistics is computed for each functional category of a
       government using the following formula: 

                                        Part-Time Hours Paid 
          Full-Time Employees + ------------------------------------ 
                                  Standard Number of Hours for Full- 
                                  Time Employees in that Government


       5.32 October 1986 Revision to Full-Time Equivalent Calculation
            Method    


       The method for calculating full-time equivalent employment based
       on part-time hours worked has been in use since the 1986 employ-
       ment survey.  Prior to the 1985 survey, the Bureau used a
       different method, one based on payrolls.  (For the October 1985
       employment survey no full-time equivalent employment data were
       calculated.) 

       This payroll method computed full-time equivalent employment for
       each functional category of a government using the following
       formula: 

                                      Full-Time Payrolls 
       Full-Time Employees X --------------------------------------- 
                             Full-Time Payrolls + Part-Time Payrolls 

       This payroll-based method was discontinued when "hours of work"
       data became more generally available as a result of changes to
       the Fair Labor Standards Act. 


       5.33 Average October Earnings 


       Average October earnings is a derived statistic representing the
       average monthly payroll per full-time employee.  This statistic
       is computed for each functional category of a government using
       the following formula: 

                 Full-Time Employee October Payrolls 
                ------------------------------------- 
                    Number of Full-Time Employees

       Average earnings data may not convert to accurate annual earning
       rates because of overtime, unusual situations (e.g., special
       events, natural disasters), and such factors as employees who are
       paid only during 9 or 10 months of the year (especially in
       education and natural resources). 

       Other factors affecting average October earnings rates include
       (1) the proportion of highly trained or skilled personnel, (2)
       the concentration of employees in metropolitan or urban areas
       where the cost-of-living is higher, and (3) the exclusion of
       housing, meals, or other "in kind" compensation which may be
       provided to employees (especially for hospitals). 


       5.4 Functional Categories Unique to Employment Survey 


       The employment survey uses certain functional categories, or more
       accurately sub-categories, that are not found in the finance
       survey, most of which apply to education data.  They are defined
       below: 

       Higher Education, 

          Instructional Employees--Includes personnel engaged in
          teaching and related academic research as well as teachers at
          hospitals and agricultural experiment stations and farms. 

          Other Higher Education Employees--Includes all noninstruc-
          tional employees.  Noninstructional employees at hospitals and
          outpatient clinics operated by higher education institutions
          and serving the general public are excluded from Higher
          Education and reported under the Hospitals (code 36) or Health
          (code 32) function, respectively.  Likewise, agricultural
          extension services employees and noninstructional employees at
          agricultural experiment stations and farms are excluded from
          this category and are reported under the Other Natural
          Resources (code 59) function. 

       Elementary and Secondary Education, 

          School Instructional Employees--Includes not only classroom
          teachers, but also principals, supervisors of instruction,
          teacher aides, substitute teachers, school librarians, library
          aides, and guidance and psychological personnel. 

          Administrative and Clerical Employees 

          Operations and Maintenance Employees 

          Cafeteria Employees 

          Bus Transportation Employees 
         
          Health and Recreation Employees 

          Student Employees 

          Unallocable Elementary and Secondary Education Employees 

       Police Protection, 

          Police Officers--Includes personnel with the power of arrest
          ("sworn" officers). 

          Other Police Protection Employees 

       Fire Protection, 

          Firefighters--Includes personnel trained and/or engaged in
          fire suppression and prevention. 

          Other Fire Protection Employees 


       5.5 Special Topics During Census of Governments 


       During the quinquennial census of governments, the Bureau
       frequently collects additional information about public
       employment. 

       Data on labor management relations provide statistics on state
       and local employees who belong to employee organizations,
       governments with a labor relations policy, contractual agreements
       between governments and employee bargaining units, employees
       covered by contractual agreements, and employee bargaining units. 

       Data on government costs for employee benefits provide statistics
       on state and local government costs for providing selected
       benefits for their employees, such as Federal Social Security,
       retirement, unemployment compensation insurance, disability
       insurance, life insurance, hospital/medical insurance, uniform
       and equipment allowances, bonuses and cash awards, and other
       benefits.  This report also contains information on the number of
       current state and local government employees covered by Federal
       Social Security. 


       ----------------------- 
       1 For 1957 data, the month of April was used. 

            CHAPTER 6.  OVERVIEW OF GOVERNMENT FINANCE STATISTICS 
        

       Contents and Abstract: 

       6.1 Primary Basis of Government Finance Statistics 
        6.11 Four Sectors of Government from a Finance Viewpoint 

       6.2 Accounting Basis 
        6.21 Accounting Funds (or Entities) 
        6.22 Cash vs Accrual Basis of Accounting 
        6.23 Generally Accepted Accounting Procedures (GAAP) 

       6.3 Major Finance Concepts 
        6.31 Statistical Nature of Data 
        6.32 Current Dollars 
        6.33 Noncash Transactions 

       6.4 Intergovernmental Transactions 
        6.41 Intergovernmental Fiscal Relations (Type 1) 
        6.42 Fiscal Agents for Other Governments (Type 2) 
        6.43 Purchases from Other Governments (Type 3) 
        6.44 Netting Out Duplicative Intergovernmental Transactions 
        6.45 Payments to Other Government Insurance Trust Systems 

       6.5 Agency, Private Trust, Investment, and Other Transactions 
        6.51 Agency Transactions 
        6.52 Private Trust Transactions 
        6.53 Investment Transactions 
        6.54 Adjustment and Correction Transactions 

       6.6 Internal Transfers 
        6.61 Interfund Transactions 
        6.62 Intragovernmental Service Funds (Revolving Funds) 
        6.63 Interdepartmental Charges

       6.7 Miscellaneous Topics 
        6.71 Suspense Transactions 
        6.72 Capital and Operating Leases 
        6.73 Anomalies of Government Finance Statistics 
        6.74 Exhibit Statistics 

       Chart: 

        6-A Examples of Accounting Funds and Their Treatment in Census
            Bureau Statistics on Government Finances


       The Census Bureau collects four types of finance data about the
       Federal, state, and local governments: revenues, expenditures,
       indebtedness, and cash and securities (except for the Federal
       Government).  Each type is described in detail in the next four
       chapters.  This chapter provides a general overview of government
       finances, the accounting practices of governments, and how the
       Bureau's finance statistics relate to the accounting systems from
       which they originate. 
       








































       6.1 Primary Basis of Government Finance Statistics 

        
       The primary basis of the finance statistics reported by the
       Census Bureau relates to all external transactions of a
       government exclusive of agency, private trust, and investment
       transactions.  The income concept of "revenue," the outgo concept
       of "expenditure," and the concept of government indebtedness
       pertain to nearly all accounting funds and accounts and to all
       boards, commissions, and other agencies of a government, as
       established using the criteria discussed in Chapter 3.  Moreover,
       these figures are net of any duplicating amounts resulting from
       transactions between funds or agencies of the same government. 


       6.11 Four Sectors of Government from a Finance Viewpoint 


       As described in Section 3.2, the activities of governments are
       divided into four sectors for Census Bureau purposes.  This
       section provides additional information about these sectors in
       terms of how they apply to finance statistics. 

       General Government Sector: Within the totals of government
       revenue and expenditure, internal transfers (e.g., interfund
       transactions) are "netted out." Therefore, "general revenue" and
       "general expenditure" represent only revenue from external
       sources and expenditures to individuals or agencies outside the
       government, and do not directly reflect any "transfer" or
       "contributions" to or from the utilities, liquor stores, or
       insurance trust sectors.  See Section 6.6 for more information on
       internal transactions. 

       Utilities Sector: In the primary classification of government
       revenue and expenditure, the term "utility" is used to identify
       certain types of revenue, expenditure, and debt categories.
       Utility revenue relates only to the revenue from sales of goods
       or services and by-products to consumers outside the government.
       Revenue arising from outside other aspects of utility operations
       is classified as general revenue (e.g., interest earnings).
       Utility expenditure applies to all expenditures for financing
       utility facilities, for interest on utility debt, and for
       operation, maintenance, and other costs involved in producing and
       selling utility commodities and services to the public (other
       than noncash transactions like depreciation of assets).  Utility
       revenue and expenditure are reported on a "gross" basis--i.e.,
       without offsetting revenue with its related expenditure or
       expenditure with its related revenue. 

       Liquor Stores Sector: Liquor stores revenue relates only to
       amounts received from sale of goods and associated services or
       products.  Liquor store expenditure relates only to amounts for
       purchase of goods for resale and for provision, operation, and
       maintenance of the stores.  Any associated government activity,
       such as licensing and enforcement of liquor laws or collection of
       liquor taxes, are classified under the general government sector. 

       Insurance Trust Sector: Insurance trust revenue comprises only
       (1) retirement and social insurance contributions, including
       unemployment compensation "taxes" received from employees and
       other government or private employers, and (2) net earnings on
       investments set aside to provide income for insurance trusts1.
       Transfers or contributions from other funds of the same
       government are not classified as insurance trust revenue but
       rather are reported under special exhibit categories (see Chapter
       11).  Insurance trust expenditure comprises only benefit payments
       and withdrawals of contributions made from retirement and social
       insurance trust funds.  Costs for administering insurance trust
       systems are classified under the general government sector. 

        
       6.2 Accounting Basis 


       The major source of these finance statistics is the governments'
       own accounting systems, either directly or through intermediate
       reporting systems like central state collections. 


       6.21 Accounting Funds (or Entities) 


       Governments administer their finances through accounting devices
       called "funds" (not to be confused with the use of the term
       "funds" for monies).  Funds are established to support specific
       activities or to attain certain objectives, the most important of
       which is accountability of public monies.  The focus of the
       government's own reporting system, therefore, is on the trans-
       actions and condition of these funds. 

       In contrast, the Census Bureau public finance statistics are
       organized to show a government's finances in their entirety, with
       emphasis on the general government sector and without distin-
       guishing the various accounting funds.  In other words, the fund
       accounting nature of government reports disappears in Census
       Bureau statistics. 


       6.22 Cash vs Accrual Basis of Accounting 


       State and local government accounting reports and records may
       provide data on a cash, accrual, or modified accrual basis.  For
       a particular government, the basis of reporting may differ among
       funds.  Census Bureau statistics generally adopt whatever basis
       the government itself uses so long as that basis (1) conforms to
       generally accepted accounting procedures and (2) is applied
       consistently from year-to-year.  Because of the growing standard-
       ization of accounting methods by governments (see below), this
       means that most finance statistics pertaining to governmental
       fund types are based on the modified accrual basis; proprietary
       (enterprise) fund types are based on the full accrual basis; and
       fiduciary fund types are recognized on the basis consistent with
       the fund's accounting measurement objective.  It should be noted
       that some governments may still use cash basis accounting because
       of constitutional provisions or other state law2. 

       For statistics on Federal Government expenditure, the Bureau
       includes actual outlays rather than obligations or amounts
       authorized. 
       6.23 Generally Accepted Accounting Procedures (GAAP) 


       A major change in government accounting over the last decade or
       two has affected greatly the Census Bureau's public finance
       statistics.  This is the adoption of generally accepted
       accounting procedures (GAAP) under the aegis of the Government
       Accounting Standards Board (GASB).  Previously, the accounting
       rules for governments were broad enough that they could develop
       their own unique form of accounting for their finances.  Each
       financial report, for instance, looked different and reported
       varying degrees of detail. 

       Now, more governments have adopted the GAAP for their reporting
       systems which has had a profound effect on the Bureau's data
       collection efforts.  On the one hand, finance data are being
       recorded by governments in a more consistent fashion.  Yet, the
       products of this system result in a lower level of detail than in
       the past, forcing the Bureau to rely less on published financial
       reports and more on internal accounting records of governments
       (such as computer reports).  This has both complicated the work
       involved and forced the elimination of certain categories of
       data, especially in the debt and cash and securities area.


       6.3 Major Finance Concepts 


       The collection and use of Census Bureau finance statistics
       requires an understanding of certain major concepts.  Some of
       these may have different meaning when used in other contexts. 


       6.31 Statistical Nature of Data 


       Although the original source of data for these finance statistics
       are accounting records of governments, the data derived from them
       are purely statistical in nature and cannot be used as financial
       statements or to measure a government's fiscal condition.  For
       instance, the difference between a government's total revenue and
       expenditure cannot be construed to be a "surplus" or "deficit." 


       6.32 Current Dollars 


       Finance statistics published by the Bureau are in terms of
       current dollar amounts--i.e., they have not be adjusted for price
       and wage changes that may have occurred. 


       6.33 Noncash Transactions 


       These finance statistics exclude noncash transactions, such as
       technical aid, depreciation of fixed assets, payments-in-kind,
       loan guarantees, and the like. 


       6.4 Intergovernmental Transactions 


       A major category of both revenue and expenditure involves
       intergovernmental transactions.  Governments have important
       fiscal relations among themselves, generally of three types.
       First, they transfer monies to other governments to enable the
       receiving government to perform specific public functions or to
       provide for its general financial support (Type 1).  Second, they
       act as agents for other governments in financial matters (Type
       2).  And, third, they purchase commodities, property, and
       services from other governments much as they do from private
       suppliers (Type 3).  Only the first type of transactions is
       classified by the Census Bureau as intergovernmental revenue and
       expenditure.  How each of these three types of intergovernmental
       transactions is handled is described below. 


       6.41 Intergovernmental Fiscal Relations (Type 1) 


       The Census Bureau definition of intergovernmental transactions is
       limited to monies paid to or received from other governments for
       performing specific governmental functions or for general
       financial support, whether the activity is undertaken on behalf
       of the paying government or whether such funds are regarded as
       assistance for the support of activities of the receiving
       government.  They are classified in the general government sector
       no matter their purpose (including utilities).  Examples of Type
       1 intergovernmental transactions include the reimbursement of one
       government by another for tuition costs, hospital care, boarding
       prisoners, construction of public improvements, etc.; grants in
       aid; payments-in-lieu-of-taxes, and the like. 

       Another form of intergovernmental transaction involves the
       sharing of tax proceeds with other governments, typically by the
       state government.  A portion of the sales taxes, for instance,
       collected by the state often may be redistributed to the local
       governments where they were collected.  Whenever a government
       distributes some share of a tax it imposes and collects, its
       payments are reported as intergovernmental expenditure and the
       receiving governments' receipts are reported as intergovernmental
       revenue.  As described in Section 6.42, the retention of taxes
       collected by a government acting as an agent for another is not
       reported as an intergovernmental transfer. 

       Generally, loans and advances to other governments are not
       treated as intergovernmental transactions except for one unique
       type: "contingent" loans or advances.  Similar to grants-in-aid,
       contingent loans are made by a government to another without any
       fixed provisions about its repayment.  Designed to assist
       governments in financing public projects, they are used for such
       purposes as public works, planning advances, housing development,
       etc.  In all these cases, repayment of money advanced depends on
       certain contingencies or conditions at a later date.  Thus, to
       ensure that these transactions are reported somewhere in the
       Bureau's classification system, they are reported as
       intergovernmental revenue and expenditure rather than as a debt
       transaction3. 

       Finally, the Census Bureau definition of intergovernmental
       transactions excludes the sale of marketable securities to other
       governments (interest bearing or noninterest bearing if the
       latter have fixed repayment conditions).  Instead, they are
       treated as investment or debt transactions--i.e., as neither
       revenue nor expenditure. 


       6.42 Fiscal Agents for Other Governments (Type 2) 


       Type 2 intergovernmental transactions rarely are classified as
       intergovernmental revenue or expenditure for Census Bureau
       purposes.

       Governments sometimes act as fiscal agents for other governments.
       Such relations are excluded from the Bureau's definition of
       intergovernmental transactions.  One common example is the
       collection and retention of withholdings from employee pay for
       taxes owed to other governments (such as Federal social security
       "taxes").  These are treated as an agency transaction and are
       excluded entirely from the Bureau's statistics (see Section 6.51
       below). 

       Governments also act as fiscal agents to collect taxes that are
       imposed or authorized by another government.  These are reported
       as taxes by the authorizing government; for the collecting agent
       they are excluded except for the following: If the collecting
       government is allowed to retain part of the tax proceeds (e.g.,
       as reimbursement), then that amount is reported as tax revenue by
       the collecting government.  In neither case is the money treated
       as an intergovernmental transaction. 

       Thus, if a state government imposes, authorizes, or requires
       local governments to collect a specific tax and permits the local
       government to retain all or part of its collections, then this
       local share is classified as tax revenue of the local government,
       not as intergovernmental revenue. 

       This same treatment applies where a state government retains part
       of a locally-imposed tax or where a local government retains a
       portion of tax proceeds collected for another local government. 


       6.43 Purchases from Other Governments (Type 3) 


       Type 3 intergovernmental services are not classified as
       intergovernmental revenue or expenditure unless they involve
       government services (other than utilities).

       Governments may purchase property, commodities, and utility
       services from other governments much as they do from private
       vendors.  Similarly, governments may levy taxes on facilities of
       other governments in the same manner as on privately-owned
       facilities.  Because a government's records ordinarily do not
       distinguish between private and governmental purchasers or
       taxpayers, these types of transactions are not reported as
       intergovernmental revenue and expenditure in Census Bureau
       statistics.  Instead, they are treated in the same manner as
       those involving the private sector--e.g., as tax or charge
       revenue by the receiving government and as direct expenditure by
       the paying one. 

       On the other hand, purchases of governmental services (e.g.,
       police and fire protection) from other governments usually are
       identified as such in a government's records.  Thus, reimburse-
       ment of one government by another for such services (other than
       utilities) is reported as an intergovernmental transaction, to
       the extent such items are identifiable in the governmental
       records used by the Bureau. 


       6.44 Netting Out Duplicative Intergovernmental Transactions 


       Intergovernmental transactions receive special treatment whenever
       data for individual governments are grouped, or aggregated, for
       publication purposes.  Transactions among governments within the
       same group are "netted out." For instance, data for all local
       governments within a state are net of revenue and expenditure
       between them (i.e., only amounts to and from the Federal and
       state governments are included).  This procedure avoids the
       duplication that would result if the published data included both
       the intergovernmental payment made by the one government and the
       direct expenditure from that money by the receiving government. 


       6.45 Payments to Other Government Insurance Trust Systems 


       An important exception to the above involves payment by one
       government to an insurance trust system administered by another,
       most commonly public employee-retirement systems.  The payment by
       one government, either on behalf of its employees who are members
       of the plan or for general financial support, to another govern-
       ment's insurance trust is treated as a current operation
       expenditure of the paying government (for the function involved)
       and as an insurance trust revenue of the receiving government,
       not as intergovernmental transactions.

       The purpose of this treatment is to avoid an imbalance between
       intergovernmental revenue and expenditure.  Since intergovern-
       mental revenue and expenditure are "two sides of the same coin,"
       in theory (or a perfect data collection system) the two should
       always equal.  Also, contributions for an insurance trust system
       are insurance trust revenue so long as they come from outside the
       administering government.  To avoid the imbalance between
       intergovernmental revenue and expenditure that would result if
       the payment of the contribution were treated as an intergovern-
       mental expenditure and the receipt were treated as an insurance
       trust revenue, neither of these transactions is treated as
       intergovernmental. 

        
       6.5 Agency, Private Trust, Investment, and Other Transactions 


       Government accounting records from which the Census Bureau
       derives statistics contain a wide variety of fiscal transactions,
       not all of which fall within the scope of the finance survey.
       This section discusses those types of transactions that are
       excluded. 


       6.51 Agency Transactions 


       Agency transactions are excluded from financial statistics
       produced by the Census Bureau. 

       Agency transactions represent financial activities involving the
       receipt, holding, and disbursement of monies which a government
       undertakes for other governments in the capacity of an agent--
       e.g., transactions undertaken without discretion on the part of
       the agent government.  Generally, monies received from other
       governments or individuals for transmittal to other governments
       or individuals are classified as agency receipts, and the
       corresponding payments as agency disbursements, if the inter-
       mediate government has no discretion in determining either the
       amounts of such payments or the recipients4. 

       The most common agency transaction involves the collection of
       taxes for other governments.  Often, for example, a county
       government will collect general property taxes on behalf of all
       governments levying such taxes within its area.  These
       collections are classified as tax revenue of the final recipient
       governments (i.e., the ones levying the tax) and are omitted from
       the finance statistics of the county government (i.e., the
       collecting agent).  Another typical example is the withholding of
       Federal Social Security taxes from public employees salaries and
       their disbursement to the Federal Government.  Still another type
       is where the county government acts as an agent of the state
       government in distributing aid to other local governments within
       its boundaries. 

       Census Bureau finance statistics also exclude transactions
       arising from agreements between the Federal Government and state
       or local governments whereby the latter agree to serve as agents
       in transmitting Federal payments to individuals (e.g., various
       Federal benefit payments to veterans).  These are reported as
       Federal Government direct expenditure and as agency transactions
       of the state or local government. 


       6.52 Private Trust Transactions 


       Private trust transactions are excluded from financial statistics
       produced by the Census Bureau. 

       Private trust transactions comprise accounting funds that receive
       and disburse assets held in trust for a particular individual or
       corporation, such as when a government assumes the obligation of
       applying money to a specified use benefitting the private party
       for whom the fund was established, or when the government holds
       deposit or other monies pending fulfillment of certain conditions
       or pending determination of ownership.  Essentially, they are
       funds through which the government acts as a trustee or agent on
       behalf of private individuals or corporations. 
       6.53 Investment Transactions 


       The receipts and payments arising from investment transactions
       are excluded from Census finance statistics except for any
       recorded profit or loss when they are sold. 

       Investment transactions involve the purchase and sale of
       securities for investment purposes, extension of loans to
       individuals, and receipts resulting from repayment of such loans.
       Their exclusion does not apply to purchase and sale of realty or
       tangible personal property not for investment nor to the
       extension and repayment of contingent loans and advances to
       another government. 


       6.54 Adjustment and Correction Transactions 


       Census Bureau finance statistics represent transactions that are
       net of refunds or other correcting adjustments.  Adjustment
       transactions are not reported separately in Census statistics;
       instead, they reduce or increase amounts reported as revenue and
       expenditure.  The exact treatment of such transactions depends on
       when the refund or correction occurred--i.e., whether it was in
       the same fiscal year or a prior fiscal year. 

       Same fiscal year adjustments: Revenue amounts represent gross
       collections less any refunds paid out during the same fiscal
       year.  Expenditure amounts represent gross disbursements less any
       amounts refunded for payments made in the same fiscal year.
       Also, interest earnings on investments and interest payments on
       debt are adjusted for accrued interest on securities purchased
       and on debt obligations issued, respectively. 

       Prior fiscal year adjustments: The refund of an expenditure made
       in a prior fiscal year is treated as Miscellaneous General
       Revenue (code U99).  The refund of a revenue other than taxes is
       treated as miscellaneous general expenditure (code E89).  Refunds
       of prior year tax collections are treated as offsets to current
       year tax collections. 

       The chart below summarizes the rules for reporting refund and
       correction adjustments: 


                                              Refund or Correction for
                      Refund or Correction     Prior Fiscal Year(s)
       Type of Data   in Same Fiscal Year       Taxes        Other
       -------------  --------------------  ------------ ---------------
       Revenue        Deduct from gross     Deduct from  Report as ex-
                      receipts.             gross taxes. penditure (E89).

       Expenditure    Deduct from gross         (X)      Report as
                      disbursements.                     revenue (U99).


       (X) means not applicable.


       6.6 Internal Transfers 


       In general, the Census Bureau reports revenue and expenditure
       that originate from or are directed outside the government.
       Internal transactions within the government are excluded.  There
       are so many variations to this general rule, however, that the
       topic warrants special consideration. 


       6.61 Interfund Transactions 


       As noted above, governments record their financial transactions
       through accounting devices called "funds." The different funds
       that account for a government's finances have fiscal transactions
       with each other as well.  These are reported in accounting
       reports just like those made outside the government.  Take, for
       instance, funds established to record the provision of services
       or commodities to other agencies of the same government, such as
       motor pools, central computer centers, central stores, garages,
       asphalt plants, and the like.  In other cases, the general fund
       may transfer money to a construction (bond) fund or loan money to
       special revenue fund.  The first type of interfund transactions,
       commonly called intragovernmental service funds, are included in
       Bureau statistics (see Section 6.62); the second type are
       excluded from Census Bureau statistics. 

       Transfers to Own Utility: A government utility often provides
       services or commodities to other agencies of the same government.
       To the extent they are identifiable, these transactions are
       reported as an expenditure of the activity consuming the utility
       services (rather than as a utility expenditure) and any
       corresponding revenue is excluded from utility revenue. 
        
       Other Interfund Transactions: Accounting procedures focus on the
       activities of funds as self-contained entities.  Since Census
       Bureau treats the entire government as a financial entity, its
       statistics represent a consolidation of accounting funds.  To
       avoid duplicating revenues and expenditures among these funds,
       the Bureau "nets out" such interfund transactions.  Thus,
       revenues are reported when they "enter" the government for the
       first time and expenditures are reported when they "leave" the
       government. 


       6.62 Intragovernmental Service Funds (Revolving Funds) 


       Interfund transfers also arise when one department or agency
       furnishes services or commodities to others on a reimbursable
       basis.  Such services often are reported through intragovern-
       mental service (aka, revolving) funds.  These types of internal
       transfers are included in Census Bureau finance statistics by
       reporting the payments to intragovernmental service funds as an
       expenditure of the activity benefitted--i.e., of the agency using
       the service or commodity.  Since the finances of the
       intragovernmental service funds themselves are not compiled (with
       the exceptions cited in the next paragraph), then there is no
       duplication of data.  Rather, the financial transactions of the
       intragovernmental service funds are "functionalized" according to
       the activities using its services or commodities.  Unallocable
       amounts are reported as expenditures "not elsewhere classified." 

       As a general rule, the financial activities of intragovernmental
       service funds themselves are excluded from Census Bureau
       statistics since they are, in effect, reported with the activity
       paying for the service or commodity.  However, certain financial
       transactions of such funds, primarily those that occur with those
       outside the government, are included in Census Bureau data on
       revenue and expenditure.  These consist of: 


         - The sale of surplus vehicles or other items to outsiders are
           reported as revenues. 

         - Intergovernmental grants directly from another government--
           i.e., those not passing through another fund of the
           government--also are reported as revenue. 

         - Major capital outlays of intragovernmental service funds
           should be double-coded as a capital outlay expenditure and as
           an offset to current operations expenditure.  If known, they
           are recorded under the applicable function.  (For instance,
           major purchase of police cars by a motor pool fund should be
           double-coded as K62 and as a deduction to E62).  If the
           function is unknown, they are reported under Other and
           Unallocable, code 89.  The purpose of this practice is to
           avoid understating a government's capital outlays.
        
         - Total salaries and wages paid during the fiscal year are
           included in the exhibit code, ZOO. 


       6.63 Interdepartmental Charges


       As government financial management systems have become more
       sophisticated so have they grown more complicated.  Certain
       internal transfers involving services provided to other
       departments no longer occur in special funds but are built into
       the regular accounts through a method of additions and
       subtractions. 

       Agencies often provide services to other departments on a
       reimbursable basis.  Traditional ones, like motor pools or
       computer services, generally operate though intragovernmental
       service funds.  Less obvious are legal offices, personnel and
       administrative departments, or even staff in functional agencies
       like highways. 

       Some governments' accounting systems report the finances for
       these services as expenditure of the activity receiving the
       service and as deductions to expenditures of the agency providing
       the service.  The Bureau reports expenditures as shown in these
       reports without modification.  It should be noted that such
       systems may understate activities, such as government
       administration, that are service providers to other departments.


       6.7 Miscellaneous Topics 


       This section covers miscellaneous financial transactions and how
       they are reported in Bureau statistics: 

        
       6.71 Suspense Transactions 


       Suspended receipts and expenditures are not classified as either
       revenue or expenditure.  Their treatment depends on the
       resolution of the dispute creating the suspense transaction.

       Suspense transactions arise when a government's receipts or
       expenditures are held in "suspense" until the resolution of the
       condition or event that halted the transaction.  For instance,
       taxes paid under protest are a common type of suspense
       transaction.  If the situation is resolved in the government's
       favor, then the receipt or expenditure is recorded in that
       period.  If the situation is not resolved in the government's
       favor, then the transaction is never reported for Census Bureau
       purposes. 


       6.72 Capital and Operating Leases 


       An increasingly popular finance mechanism, especially for capital
       outlays, is the use of operating and capital leases.  The latter
       often replace the more traditional method of funding capital
       projects by issuing bonded debt. 

       Leases are treated in the Census Bureau classification system as
       follows: 

        - Effective with fiscal year 1987-88 data, payments on capital
          leases are treated as capital outlay expenditure, either for
          the purchase of land and existing structures ("G" code) or for
          purchase of equipment ("K" code) depending on the situation.
          These include payments representing both principal and
          interest, which may be separate in a government's fiscal
          report.  Examples include lease-purchase agreements,
          installment purchase contracts, and capitalized leases.  Prior
          to fiscal year 1987-88, these payments were classed as current
          operations.  The present treatment recognizes capital leases
          as a type of "pay-as-you-go" funding technique. 

        - Payments on operating leases are treated as current operations
          expenditure ("E" code).  This represents no change in
          classification. 

        - Capital and operating leases are not treated as debt for
          Census Bureau purposes even if shown as liabilities in a
          government's fiscal report or debt schedule. 

























       6.73 Anomalies of Government Finance Statistics 


       The financial classification system described above has resulted
       in a few anomalies which deserve mentioning. 

        o All intergovernmental revenue is, by definition, included in
          the general government sector, including the utility
          intergovernmental codes first used in the fiscal year 1987-88
          finance survey.  Utility disbursements from these monies,
          however, are reported in the utilities sector. 

        o Insurance trust systems often hold for investment purposes
          securities issued by their own government.  Since these types
          of transactions are generally not identified in a government's
          records, the interest paid by the government for such
          securities is reported as interest expenditure (e.g., at I89)
          and the interest received by the insurance trust system is
          reported as earnings on investments.  (The exception is the
          interest earnings of Federal Government insurance trusts since
          all their investments are in U.S. securities.) 


       6.74 Exhibit Statistics 


       As described above, the primary focus of Census Bureau finance
       statistics is the government as a whole.  The four sectors of
       government--general government, utilities, liquor stores, and
       insurance trust--are additive pieces in arriving at a govern-
       ment's total financial activity.  By definition, transfers or
       contributions among these sectors are excluded from Census Bureau
       statistics.  Moreover, certain features of a government finances
       cannot be explained by the basic statistics because the data do
       not "fit" into the regular classification system. 

       To provide additional data that fall outside the scope of the
       regular classification schema, the Bureau collects "exhibit
       statistics." These concern total salaries and wages for the
       fiscal year; transactions of state liquor control systems and
       lottery operations; more complete data on insurance trusts,
       especially public employee retirement systems, including
       transactions with the other sectors; and special education-only
       data.  These exhibit statistics treat the liquor store and
       insurance trust sectors as distinct entities, including financial
       transactions conducted with the parent government. 

       For more information on exhibit statistics, see Chapters 11
       (insurance trust systems) and 12 (liquor store and lottery
       exhibits). 


       --------------------- 
       1 The substantial amount of interest paid by the U.S. Treasury to
         Federal insurance trust systems (which have all their reserves
         invested in Federal securities) is excluded from Federal
         insurance trust revenue since it is an intragovernmental
         transfer.  The principle of eliminating these interfund
         transactions, however, is not followed in the case of interest
         paid by a state or local government on any of its own
         securities held as investments by insurance trust funds it
         administers--mainly because of the difficulty of identifying
         such transactions. 
        
       2 The "cash" basis of accounting, now rare in its pure form,
         reflects actual cash receipts and outlays during the year.  The
         "accrual" basis reports revenue when it is first earned and
         measurable (e.g., tax bills are sent) and expenditures when
         they are incurred.  The "modified accrual" basis, on the other
         hand, recognizes revenues when they become available and
         measurable while expenditures are recognized when their fund
         liability is incurred. 

       3 Unlike "regular" loans to other governments, contingent loans
         are not reported as debt transactions for Census Bureau
         purposes. 

       4 The "pass-through" of Federal aid through the state governments
         to local governments, however, is treated as regular finance
         activities since the state usually has discretionary authority
         over distribution of the funds. 



                              CHAPTER 7.  REVENUE 


       Contents and Abstract: 

       7.1 Revenue Definition 
        7.11 Refunds and Correcting Transactions 

       7.2 General Revenue 
        7.21 Taxes (and the Visibility Test) 
        7.22 Intergovernmental Revenue 
        7.23 Current Charges 
        7.24 Miscellaneous General Revenue 

       7.3 Liquor Store Revenue 

       7.4 Utility Revenue 
        7.41 Intergovernmental Revenue Codes for Utilities 

       7.5 Insurance Trust Revenue 

       Description Sheets 


       Governments are adopting more diverse sources of revenue to
       support their activities.  In 1922, property taxes accounted for
       over three-fourth of local government general revenue; by fiscal
       year 1981 this share had fallen to 28 percent. 

       This chapter explores the various types of revenue sources
       available to governments and how they are classified for Census
       Bureau purposes. 


       7.1 Revenue Definition


       Revenue includes all amounts of money received by a government
       from external sources during its fiscal year (i.e., those
       originating "outside the government"), net of refunds and other
       correcting transactions, other than issuance of debt, sale of
       investments, and agency or private trust transactions.  Under
       this definition, revenue excludes amounts transferred from other
       funds or agencies of the same government. 

       Revenue comprises amounts received by all agencies, boards,
       commissions, or other organizations categorized as dependent on
       the government concerned (see Chapter 3).  Stated in terms of the
       accounting procedures from which these data originate, revenue
       covers receipts from all accounting funds of a government, other
       than intragovernmental service (revolving), agency, and private
       trust funds. 

       Revenue of business-type activities of governments (utilities and
       other commercial or auxiliary enterprises) is reported on a gross
       basis.  That is, related expenditures are not deducted from their
       revenues to derive net revenue amounts1. 

       The following types of receipts are excluded from revenue: 

        o Taxes and other amounts paid under protest and held in
          suspense accounts subject to possible refund.  Such amounts
          are not reported as revenue unless and until the protest is
          decided in the government's favor (see Section 6.71 on
          Suspense Transactions). 

        o Proceeds from borrowing, whether short- or long-term, except
          contingent loans and advances which are reported as inter-
          governmental revenues (see Section 6.41). 

        o Recoveries or refunds of amounts spent in the same fiscal
          year, which are deducted from expenditures (see Section 6.54). 

        o Proceeds from the sale of investments and the repayment of
          loans, except for contingent loans as mentioned above.  Any
          recorded profit or loss from the sale of investments, however,
          is reported as revenue or expenditure, based on the situation. 

        o Transfers from agencies or funds of the same government (see
          Section 6.6).

        o Agency or private trust transactions, where the government is
          acting on behalf of others (see Section 6.5). 

        o Noncash transactions, such as receipt of technical services,
          commodities, property, noncash gifts or bequests, and other
          "receipts-in-kind." 

       Government revenues are categorized according to the nature of
       their source.  All revenue falls into one of the four sectors of
       government described in Chapter 3. 


       7.11 Refunds and Correcting Transactions 


       Revenue data are adjusted for refunds and other correcting
       transactions.  The rules for refunds of taxes are different than
       those for other revenues.  See Section 6.54 for details. 


       7.2 General Revenue 


       General revenue comprises all revenue except that classified as
       liquor store, utility, or insurance trust revenue.  Generally,
       the basis for this distinction is not the fund or administrative
       unit established to account for and control a particular
       activity, but rather the nature of the revenue source involved. 

       Within general revenue are four main categories: taxes, inter-
       governmental revenue, current charges, and miscellaneous general
       revenue.  Each is described in detail below. 

         
       7.21 Taxes (and the Visibility Test) 


       Taxes are compulsory contributions exacted by a government for
       public purposes, other than for employee and employer assessments
       and contributions to finance retirement and social insurance
       trust systems and for special assessments to pay capital improve-
       ments.  Tax revenue comprises gross amounts collected (including
       interest and penalties) minus amounts paid under protest and
       amounts refunded during the same period.  It consists of all
       taxes imposed by a government whether the government collects the
       taxes itself or relies on another government to act as its
       collection agent (see below).

       The visibility test.  One important feature of tax revenue is the
       need to pass a "visibility test." That is, the tax levy must be
       visible to the taxpayer as being a tax and not buried under the
       guise of another revenue.  Take, for instance, a tax on utility
       services provided by the government levying the tax.  If the
       utility bill does not itemize the tax but incorporates it into
       its user charge rate (therefore being invisible to the customer
       as a tax), then that so-called "tax" is reported as a utility
       revenue for Census Bureau purposes. 

       Assignment of tax revenue.  The classification of tax revenue
       sometimes gives rise to the issue of, which government should be
       credited with the tax.  This situation occurs whenever one
       government collects taxes imposed by another. 

       In determining the assignment of taxes, the Bureau gives primary
       consideration to the government which actually imposes the tax
       and usually credits that government with the tax collection.  The
       government imposing a tax is the jurisdiction whose governing
       body adopts the legislation or ordinance specifying the type of
       tax, scope, and rate and requiring its payment.  Generally, if
       another government collects a tax for the levying unit, then that
       government is considered to be acting as a collecting agent and
       is credited only with any amount it retains as reimbursement for
       administration or other costs.  These guidelines apply to all
       taxes, whether levied under general municipal powers, charter
       powers, or specific state legislative authority. 

       A locally-imposed tax whose ordinance or statutory authorization
       specifies a distribution of funds to other jurisdictions (either
       mandatory or optional) is credited to the imposing government;
       payments to the other units are treated as intergovernmental
       transfers.  Taxes adopted by a government in response to requests
       from other jurisdictions who may then share in the proceeds also
       are credited to the imposing government, the distribution being
       treated as intergovernmental transfers. 

       State government provisions also affect the assignment and
       classification of local taxes.  A state-mandated tax required to
       be levied by a local government is credited to the local govern-
       ment imposing the tax.  Similarly, that portion of a state-
       enacted tax which is locally collected and retained is credited
       as a tax of the collecting agency; if there is a mandatory
       distribution to other local governments of the taxes collected,
       each of the participating governments are credited with the
       amounts received as tax revenue.  On the other hand, if there is
       a voluntary sharing of funds, these transactions are classified
       as intergovernmental transfers.  State or local government
       legislation which provides that the imposing government waive
       credit for part or all of the amounts transferred to other
       jurisdictions does not alter these guidelines.

       The examples below illustrate the various types of arrangements
       and how they are handled in this classification scheme: 

        o For a state government, local collection of state-imposed
          taxes is classified as state tax revenue*. 
        
        o State government distribution of its tax proceeds to local
          governments (e.g., on a formula basis) is treated as
          intergovernmental expenditure of the state and as intergovern-
          mental revenue of the local governments.  This is true even
          for amounts designated as the "local share" of state-imposed
          taxes so long as the tax proceeds are collected by the state
          or transferred to the state by local government collection
          agents before their distribution. 
          
        o On the other hand, if the state collects a tax imposed by
          local governments, the collection and distribution to the
          imposing local governments is treated as an agency
          transaction; that is, the receipts are reported entirely as
          tax revenue of the local governments and not as either a state
          tax or state intergovernmental expenditure*. 

        o Proceeds from taxes imposed by one local government but
          collected for it by another are reported as tax revenue of the
          imposing government, not the collecting one*. 

       * Monies retained as a collection fee, however, are reported as
         tax revenue of the collecting government. 
        
       Refunds of taxes.  Refunds for taxes originally paid in either
       the current or prior fiscal years are deducted from gross
       collections in the same year refunded.  Discounts to taxpayers
       for prompt payment or for collecting consumer taxes also are
       deducted from gross tax revenue.  The cost of collecting and
       administering taxes, however, is reported as an expenditure (for
       Financial Administration, code 23), not as an offset to taxes. 

       Taxes on government utilities.  Taxes are often imposed on
       publicly-owned utilities as on private ones.  These amounts are
       reported as tax revenue for Census Bureau purposes.  Payments-in-
       lieu-of-taxes from a utility operated by another government,
       however, are treated as intergovernmental revenue.  (Payments-in-
       lieu-of-taxes from a private utility are reported under
       Miscellaneous General Revenue, NEC, code U99.) Both taxes and
       payments-in-lieu-of-taxes received by a government from a utility
       which it operates are treated as an interfund transfer and are
       not reported as either revenue or utility expenditure. 

       Taxes are classified according to the type of tax imposed.
       Unlike most other finance statistics, they are not categorized
       along any functional lines. 


       7.22 Intergovernmental Revenue 


       Intergovernmental revenue comprises monies from other govern-
       ments, including grants, shared taxes, and contingent loans and
       advances for support of particular functions or for general
       financial support; any significant and identifiable amounts
       received as reimbursement for performance of governmental
       services for other governments; and any other form of revenue
       representing the sharing by other governments in the financing of
       activities administered by the receiving government.  All
       intergovernmental revenue is reported in the general government
       sector, even if it is used to support activities in other sectors
       (such as utilities). 

       Intergovernmental revenue excludes amounts received from the sale
       of property, commodities, and utility services to other govern-
       ments (which are reported in different revenue categories).  It
       also excludes amounts received from other governments as the
       employer share or for support of public employee retirement or
       other insurance trust funds of the recipient government, which
       are treated as insurance trust revenue (see Section 6.45). 

       Intergovernmental revenue is classified by function and by the
       level of government where it originated (i.e., Federal, state, or
       local).  The transfer of Federal aid through the state government
       is reported as state intergovernmental revenue at the local
       level. 


       7.23 Current Charges 


       This category comprises charges imposed for providing current
       services or for the sale of products in connection with general
       government activities.  Amounts designated as current charges are
       reported on a gross basis without offsetting the cost to produce
       or buy the commodities or services sold.  Utility service charges
       are excluded here and reported under Utility Revenue. 

       For the Federal Government, this category includes revenue from
       premiums related to non-social insurance programs such as crop
       and farm mortgage insurance, home mortgage insurance, and the
       like. 


       7.24 Miscellaneous General Revenue 


       This category comprises all other general revenue of governments
       from their own sources (i.e., other than liquor store, utility,
       and insurance trust revenue). 

       A classification change effective with 1987-88 data had a major
       effect on this category.  Interest revenue necessary to pay the
       interest expenditure on all public debt for private purposes is
       now reported under Interest Earnings, code U20.  Previously, this
       treatment was limited to mortgage revenue bonded debt and was
       classified under Rents, code U40.


       7.3 Liquor Store Revenue 


       Liquor store revenue comprises only receipts from sales and
       associated services or products of liquor stores owned and
       operated by state and local governments.  It excludes any
       application of general revenue for liquor store operations as
       well as receipts from licenses or other liquor taxes collected by
       liquor stores or systems (including general sales tax
       collections).  All taxes collected through liquor store
       operations are classified as tax revenue. 


       7.4 Utility Revenue 


       Utility revenue comprises receipts from sales and directly
       related services and by-products of the four types of state and
       local government utilities recognized by the Census Bureau: water
       supply, electric power, gas supply, and public mass transit
       systems.  Utility revenue is reported on a gross amount without
       deducting its related expenditures.

       Utility revenue excludes any identifiable amounts received from
       sales to the parent government.  Assessments or contributions of
       utility employees that are received by public employee retirement
       systems are classified as insurance trust revenue.

       Utility revenue also does not reflect any application of general
       revenue to utility purposes nor does it include any of the
       following receipts even when received by utility agencies or
       funds: interest on investments; rents from leases and other
       earnings from nonoperating property; grants, shared taxes, or any
       other form of intergovernmental aid (not to be confused with
       sales to other governments as customers); taxes imposed by public
       utilities; and special assessments for utility capital
       improvements.  These are classified in other revenue categories. 

       Utility revenue includes contributions from other governments for
       construction of a joint utility project ("payments-in-aid of
       construction") or for debt service of a utility consortium IF the
       contributions are treated as part of the utility's basic rate
       structure.  (These situations generally arise when a government's
       electric power utility is a major provider of electricity to
       other utilities who redistribute it to the ultimate consumers.)
       If not, then the revenue is reported under intergovernmental
       revenue.

       Utility revenue is categorized according to the type of utility
       involved. 


       7.41 Intergovernmental Revenue Codes for Utilities 


       Effective with fiscal year 1987-88 data, the Bureau created
       intergovernmental revenue codes for utilities.  Despite the fact
       that these categories possess utility function codes (B91, C92,
       D93, etc.), they are classified as general revenues.  Note that
       these categories are used to record intergovernmental
       transactions that were being reported previously under other
       intergovernmental revenue codes (i.e., B47, B89, C47, C89, D47,
       or D89). 

       Sale of utility services or commodities to other governments
       continues to be recorded as a utility revenue (i.e., A91, A92,
       A93, or A94).


       7.5 Insurance Trust Revenue 


       Insurance trust revenue consists of contributions distinctively
       imposed for the support of public employee retirement and social
       insurance systems and net earnings on their investment assets.
       Insurance trust revenue excludes (as interfund transfers)
       contributions from the government which administers the system,
       whether they are paid on behalf of its employees covered by the
       plan or for supplemental support2.  Also excluded from insurance
       trust revenue and classified as general revenue are tax receipts
       credited directly to insurance trust funds and intergovernmental
       aid, such as grants and shared taxes for support of insurance
       trust activities3.  Excluded entirely as revenue (insurance trust
       or general) are proceeds from borrowing for insurance trust
       purposes. 

       Insurance trust revenue is classified according to the major
       types of insurance trust systems recognized by the Census Bureau
       and by type of receipt (contribution or investment earnings). 


        ------------------------ 

       1 Exception is Net Lottery Revenue (code U95), for which the
         costs of prizes are deducted from gross receipts.  See Section
         12.2 for details. 
        
       2 Such contributions by the administering government, however,
         are recorded under special exhibit codes and included in
         insurance trust revenue when data are published solely for
         insurance trust systems.  See Chapter 11 for more information
         on these exhibit codes. 

       3 On the other hand, funds from other governments which represent
         the latter's employer share of contributions to an insurance
         trust system to which their employees are members are
         classified as insurance trust revenue. 

         ----------------------------------------------------------------------------- 
                                DESCRIPTIONS OF TAX CATEGORIES                   
         ----------------------------------------------------------------------------- 
         
         Compulsory contributions exacted by a government for public purposes, other
         than from special assessments for capital improvements and from employee and
         employer contributions or "taxes" for retirement and social insurance systems.

         Comprises amounts received (including interest and penalties) from taxes
         (1) imposed by a government and collected by that government or (2) collected
         on its behalf by another government serving as its agent.

         Excludes protested amounts and discounts; special assessments for property
         improvements (use code U01); compulsory contributions to social insurance
         systems even if labelled a tax--e.g., Federal Social Security tax, unemploy-
         ment insurance and workers' compensation payroll taxes, etc. (report at
         appropriate Insurance Trust Revenue code); taxes collected by a government
         as an agent for another government which actually imposed the tax (agency
         transaction) except amounts retained as a fee or shared tax.

         Refunds of taxes paid are deducted from gross tax receipts even if they were
         reported as tax revenue in a prior fiscal year.

         See Section 7.21 for more detailed background information on tax revenue.

         CATEGORY: Property Taxes

         Taxes imposed on ownership of property and measured by its value.

             Code: T01           ITEM: Property Taxes

             Includes: General property taxes, relating to property as a whole, taxed
                       at a single rate or at classified rates according to the class of
                       property.  Property refers to real property (e.g., land and
                       structures) as well as personal property; personal property can
                       be either tangible (e.g., automobiles and boats) or intangible
                       (e.g., bank accounts and stocks and bonds).

                       Special property taxes, levied on selected types of property
                       (e.g., oil and gas properties, house trailers, motor vehicles,
                       and intangibles) and subject to rates not directly related to
                       general property tax rates.

                       Taxes based on income produced by property as a measure of its
                       value on the assessment date.

                       Penalties and interest on delinquent property taxes; proceeds
                       of tax sales and tax redemptions, up to the amount of taxes due
                       plus penalties and interest (report any excess receipts as
                       follows: report amounts retained by the taxing government at
                       Miscellaneous General Revenue, NEC, code U99, and exclude any
                       amounts held for or returned to original property owner(s)).

                       For governments collecting taxes as agents for another, includes
                       any commissions, fees, or other items representing collection
                       expenses retained from tax proceeds.

             Excludes: Discounts to taxpayers for prompt payment of their tax bill.

                       Taxes or other charges on property measured by any basis other
                       than its value, such as area, front frontage, and benefits from
                       public improvements, or other "special assessments" (use code
                       U01) as well as such measures as corporate stock, bank deposits,
                       or "per head" taxes (see description under License Taxes).

                       Taxes measured by taxpayer's income from intangible property
                       (report at Individual Income Taxes, code T40).

                       Taxes paid in protest and held by government in a suspense fund
                       (report as property tax revenue if dispute is settled in
                       government's favor; do not report as tax revenue any amounts
                       returned to taxpayer).  See Section 6.71.

                       Taxes from utility owned by the taxing government (nonrevenues).

                       Payments-in-lieu-of-taxes (if paid by another government, report
                       at Intergovernmental Revenue; if paid by a private organization,
                       use code U99; and if paid by another agency or utility of the
                       same government, exclude entirely from revenue).

         CATEGORY: Sales and Gross Receipts Taxes

         Taxes on goods and services, measured on the basis of the volume or value of
         their transfer, upon gross receipts or gross income therefrom, or as an amount
         per unit sold (gallon, package, etc.); and related taxes based upon use,
         storage, production, importation, or consumption of goods and services.
         Includes licenses levied at more than minor rates.

         Excludes dealer discounts or "commissions" allowed to merchants for collecting
         taxes; taxes on the severance of natural resources, measured by value or
         quantity severed (report at Severance Taxes, code T53), except when imposed as
         a part of and at the same rate as general sales or gross receipts taxes.

             Code: T08           ITEM: Federal Customs Duties 

             Includes: Taxes levied on the importation or exportation of goods and
                       services.

             Code: T09           ITEM: General Sales and Gross Receipts Taxes

             Includes: Taxes applicable with only specified exceptions (e.g., food and
                       prescribed medicines) to sales of all types of goods and services
                       or to all gross receipts, whether at a single rate or at
                       classified rates; and sales use taxes.

             Excludes: Taxes imposed distinctively on sales of or gross receipts from
                       selected commodities, services, or businesses (report at Selective
                       Sales and Gross Receipts Taxes, codes T10-T19).

             SUB-CATEGORY: Selective Sales and Gross Receipts Taxes

             Taxes imposed on the sale of particular commodities or services or on gross
             receipts of particular businesses separately and apart from General Sales
             or Gross Receipts Taxes; and licenses measured by sales or gross receipts
             and producing more than minor amounts of revenue.

             Excludes license fees for commodity inspections at a rate per unit of
             commodity inspected that produces only minor revenue (report at License
             Taxes, codes T20-T29).

                 Code: T10           ITEM: Alcoholic Beverages    

                 Includes: Taxes on sale of alcoholic beverages, whether collected
                           through government-operated liquor stores or through
                           private outlets.

                 Code: T11           ITEM: Amusements 

                 Includes: Taxes on admission tickets or admission charges and on gross
                           receipts of all or specified types of amusement businesses.

                 Code: T12           ITEM: Insurance Premiums     

                 Includes: Taxes imposed distinctively on insurance companies and
                           measured by gross premiums or adjusted gross premiums.

                 Code: T13           ITEM: Motor Fuels 

                 Includes: Taxes on gasoline, diesel oil, aviation fuel, "gasohol",
                           and any other fuels used in motor vehicles or aircraft.

                 Excludes: Taxes on sale of fuels other than motor fuels--e.g., for
                           heating, lighting, cooking, etc. (report at Other Selective
                           Sales Taxes, code T19); and refunds of fuel taxes (deduct
                           from gross tax proceeds).

                 Code: T14           ITEM: Pari-mutuels    

                 Includes: Taxes measured by amounts wagered or bet on horse-racing, dog
                           racing, jai-lai, etc., including "breakage" collected by the
                           government.

                 Excludes: Race track licenses not based on amounts wagered (report
                           at Amusement License Taxes, code T21); sales taxes on race
                           track admissions (use code T11).

                 Code: T15           ITEM: Public Utilities

                 Includes: Taxes imposed distinctively on public utilities, both
                           privately- and publicly-owned, such as public passenger and
                           freight transportation companies, telephone, telegraph, and
                           light and power, and others; and measured by gross receipts,
                           gross earnings, or units of service sold, either as a direct tax
                           on consumers or as a percentage of gross receipts of utility.

                 Excludes: Payments-in-lieu-of-taxes from utilities operated by other
                           governments (report at Intergovernmental Revenue); any tax
                           or payment-in-lieu-of-taxes imposed on a government's own
                           utility gross receipts (interfund transfer); taxes levied
                           on such companies on any other basis (report at appropriate
                           tax related to the type of measurement concerned).

                    Notes: Report here taxes imposed by a government on its own
                           utility if they are billed directly to consumers on a
                           percentage or flat rate base and are clearly visible to the
                           consumer as a tax separate from the utility charges.  Do
                           not include taxes on the gross receipts of its own utilities.

                 Code: T16           ITEM: Tobacco Products    

                 Includes: Taxes on tobacco products and synthetic cigars and cigarettes,
                           including related products like cigarette tubes and paper.

                 Code: T19           ITEM: Other Selective Sales and Gross Receipts Taxes

                 Includes: Taxes on specific commodities, businesses, or services not
                           reported separately above (e.g., on contractors, lodging,
                           lubricating oil, fuels other than motor fuel, motor vehicles,
                           meals, soft drinks, margarine, etc.).

         CATEGORY: License Taxes

         Taxes exacted (either for revenue raising or for regulation) as a condition
         to the exercise of a business or nonbusiness privilege.  Can be levied at a
         flat rate or by such bases as capital stock or surplus, number of business
         units, or capacity.  Generally, includes taxes on property levied on some
         basis other than assessed value (e.g., on corporate stock or bank deposits).
         Also includes "fees" related to licensing activities as well as license taxes
         producing substantial revenues.

         Excludes taxes measured directly by transactions, by gross or net income and
         receipts, or by value of property, except those with only minor rates (report
         at appropriate tax code related to the type of measurement concerned).

             Code: T20           ITEM: Alcoholic Beverages

             Includes: Licenses for manufacturing, importing, wholesaling, and retailing
                       of alcoholic beverages.

             Excludes: Taxes based on volume or value of transactions (report at
                       Alcoholic Beverage Sales Taxes, code T10) or on assessed value
                       of property (report at Property Taxes, code T01); and Federal
                       customs duties on alcoholic beverage imports (use code T08).

             Code: T21           ITEM: Amusements

             Includes: Licenses on amusement businesses generally and on specific types
                       of amusement enterprises or devices (e.g., race tracks, movie
                       theaters, athletic events, pinball and video game machines, etc.).

             Excludes: "Licenses" based on value or number of admissions (report at
                       Amusements Sales Taxes, code T11), on amount of wagers (report
                       at Pari-mutuels Sales Taxes, code T14), or on gross or net income
                       and receipts (use code T11).

             Code: T22           ITEM: Corporations in General

             Includes: Franchise license taxes; organization, filing and entrance fees;
                       taxes on property measured by amount of corporate stock, debt, or
                       other basis besides assessed value of property; and other licenses
                       applicable with few, specified exceptions to all corporations.

             Excludes: Taxes on corporations based on value of property (use code T01),
                       on net income (report at Corporation Net Income Taxes, code T41),
                       or on gross receipts from sales, other than at minor rates (use
                       code T09); and taxes distinctively imposed on particular kinds
                       of businesses, such as public utilities, insurance companies,
                       etc. (report at appropriate Selective Sales Tax, codes T10-T19).

             Code: T23           ITEM: Hunting and Fishing

             Includes: Licenses for commercial and noncommercial hunting and fishing;
                       and shipping permits.

             Code: T24           ITEM: Motor Vehicles 

             Includes: Licenses imposed on owners or operators of motor vehicles for
                       the right to use public highways, such as fees for title
                       registration, license plates, vehicle inspection, vehicle
                       mileage and weight taxes on motor carriers, highway use taxes,
                       and off-highway fees.

             Excludes: Personal property taxes on motor vehicles (use code T01); sales
                       or gross receipts taxes on the sale of motor vehicles (use code
                       T09); taxes on motor carriers based on assessed value of
                       property (use code T01), gross receipts (use code T09), net
                       income (use code T41); and other taxes on the business of motor
                       transport (use code T28).

             Code: T25           ITEM: Motor Vehicle Operators

             Includes: Licenses for the privilege of driving motor vehicles, both
                       commercial and private.

             Code: T27           ITEM: Public Utilities

             Includes: Licenses distinctively imposed on public utilities, whether
                       privately- or publicly-owned, such as passenger and freight
                       transportation companies; telephone, telegraph, and light and
                       power companies; and others.

             Excludes: Taxes measured by gross or net income, units of service sold,
                       value of property (report previous items at appropriate tax code
                       related to the type of measurement concerned); and payments-in-
                       lieu-of-taxes received from other government-owned utilities
                       (report at Intergovernmental Revenue).

             Code: T28           ITEM: Occupation and Businesses, NEC
         
             Includes: Licenses (including examination and inspection fees) required of
                       persons engaged in particular professions, trades, or occupations;
                       taxes on insurance companies based on value of their policies;
                       such taxes on businesses not elsewhere classified; and charges or
                       fees relating to the inspection and marketing of commodities (e.g.,
                       seed, feed, fertilizer, gasoline, oil, citrus fruit, etc.).

             Code: T29           ITEM: Other License Taxes

             Includes: Licenses not listed separately above (e.g., animal licenses
                       including "per head" levies on livestock, health permits,
                       marriage licenses, building and equipment permits, individual
                       permits to purchase liquor, registration fees on aircraft and
                       pleasure boats, and other nonbusiness privileges).

         CATEGORY: Income Taxes

         Taxes levied on the gross income of individuals or on the net income of
         corporations and businesses (i.e., after allowable deductions).

         Deduct refunds of taxes from gross collections even if they were recorded as
         tax revenue in a previous fiscal year.

             Code: T40           ITEM: Individual Income Taxes 

             Includes: Taxes on individuals measured by net income and taxes on special
                       types of income (e.g., interest, dividends, income from
                       intangible property, etc.).

             Excludes: Taxes using income from intangible property as a measure of its
                       value as of assessment date (report at Property Taxes, code T01);
                       income taxes on unincorporated businesses (report at Corporation
                       Net Income, code T41); payroll taxes to finance insurance trusts
                       programs, such as Social Security taxes (report at appropriate
                       Insurance Trust Revenue code); and city gross earnings taxes
                       (report at Taxes, NEC, code T99).

                Notes: Includes combined individual and corporation income taxes where
                       proceeds cannot be separated.

             Code: T41           ITEM: Corporation Net Income Taxes
         
             Includes: Taxes on corporations and unincorporated businesses (when taxed
                       separately from individual income), measured by net income,
                       whether on corporations in general or on specific kinds of corp-
                       orations, such as financial institutions.

             Excludes: Income taxes on gross income or receipts of corporations (report
                       at Sales and Gross Receipts Taxes, codes T09-T19); and combined
                       corporation and individual income taxes not separable by type
                       (use code T40).

                Notes: Although such taxes may be called "license" or "franchise" taxes,
                       they are classified here if measured by net income.

         CATEGORY: Other Taxes

             Code: T50           ITEM: Death and Gift Taxes 

             Includes: Taxes imposed on the transfer of property at death, in contem-
                       plation of death, or as a gift (e.g., inheritance and estate taxes).

             Code: T51           ITEM: Documentary and Stock Transfer Taxes

             Includes: Taxes on the recording, registration, and transfer of documents,
                       such as mortgages, deeds, and securities.

             Excludes: Taxes on recording or transfer of motor vehicle titles (report
                       at Motor Vehicle Licenses, code T24).

             Code: T53           ITEM: Severance Taxes

             Includes: Taxes imposed distinctively on removal (severance) of natural
                       resources (e.g., oil, gas, coal, other minerals, timber, fish,
                       etc.) from land or water and measured by the value or quantity
                       of products removed or sold.

             Code: T99           ITEM: Taxes, NEC

             Includes: Taxes not listed separately or provided for in categories above,
                       such as taxes on land at a specified rate per acre (rather than
                       on assessed value).


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------
         
                                              General Purpose Governments            
                                                               Large                  
                                                               city-   Other  Special
         CODE - TYPE OF TAX                Federal  State  DC  county  local  district

         T01-Property Taxes...............    N       .     .     .      .        .

         ---Sales and Gross Receipts Taxes:
         T08-Federal Customs Duties.......    .       N     N     N      N        N
         T09-General Sales and Gross
               Receipts Taxes.............    N       .     .     .      .        .

         ---Selective Sales Taxes:
         T10-Alcoholic Beverages..........    .       .     .     .      .        .
         T11-Amusements...................    N       .     .     N      N        N
         T12-Insurance Premiums...........    N       .     .     N      N        N
         T13-Motor Fuels..................    .       .     .     .      .        .
         T14-Parimutuels..................    N       .     N     N      N        N
         T15-Public Utilities.............    .       .     .     .      .        .
         T16-Tobacco Products.............    .       .     .     .      .        .
         T19-Other........................    .       .     .     .      .        .

         ---License Taxes:
         T20-Alcoholic Beverages..........    N       .     .     N      N        N
         T21-Amusements...................    N       .     .     N      N        N
         T22-Corporations in General......    N       .     .     N      N        N
         T23-Hunting and Fishing..........    N       .     .     N      N        N
         T24-Motor Vehicles...............    N       .     .     .      .        N
         T25-Motor Vehicle Operators......    N       .     .     N      N        N
         T27-Public Utilities.............    N       .     .     N      N        N
         T28-Occupation and Businesses,NEC    N       .     .     N      N        N
         T29-Other........................    N       .     .     N      N        N

         ---Income Taxes:
         T40-Individual Income............    .       .     .     .      .        N
         T41-Corporation Net Income.......    .       .     .     .      N        N

         ---Other Taxes:
         T50-Death and Gift...............    .       .     .     N      N        N
         T51-Documentary & Stock Transfer.    N       .     .     N      N        N
         T53-Severance....................    N       .     N     N      N        N
         T99-Taxes, NEC...................    .       .     .     .      .        .

         * Shows whether data are collected () or not collected (N) for that type.


         ----------------------------------------------------------------------------- 
                     DESCRIPTIONS OF INTERGOVERNMENTAL REVENUE CATEGORIES
         -----------------------------------------------------------------------------

         Amounts received from other governments for use in performing specific
         functions, for general financial assistance, or as share of tax proceeds.

         Comprises grants-in-aid; shared taxes; payments-in-lieu-of-taxes on public
         property exempt from taxation; contingent loans and advances (see Section
         6.41 for discussion of contingent transactions); significant and identifiable
         reimbursements from other governments for performing governmental functions;
         and any aid from other governments representing their share of the costs to
         finance activities administered by the receiving government.

         Excludes amounts received from sale of buildings, property or commodities
         (report at appropriate Miscellaneous General Revenue code); charges for
         utility services to other governments (report at appropriate Utility Revenue 
         code); retention of taxes collected on behalf of another government which
         actually imposed the tax (report at appropriate Tax code); and transactions
         between governments involving marketable securities or debt instruments
         (nonrevenues except for earnings, reported at code U20).

         Also excludes contributions from other governments for employee retirement
         and other insurance trust funds (report at appropriate Insurance Trust
         Revenue code) and payments-in-lieu-of-taxes from private organizations like
         private colleges (report at Miscellaneous General Revenues, NEC, code U99).

         All intergovernmental revenue, regardless of its uses, is classified as
         general revenue.  Thus, the intergovernmental revenue codes for utilities
         that were added to the classification system effective with fiscal year 1988
         data are treated as general revenue.

         Intergovernmental revenue is classified two ways: (1) by the type of government
         from which the money is received, and (2) by its purpose or function (Table 4-1
         in Chapter 4 shows the functional categories that relate to the codes below).

         See Section 7.22 for more detailed information on intergovernmental revenue.

         CATEGORY: Intergovernmental Revenue from the Federal Government

         Amounts received directly from the Federal Government.  For states includes
         Federal grants and aid, payments-in-lieu-of-taxes on Federal property,
         reimbursements for state activities, and revenue received but later
         transmitted through the state to local governments.  For locals includes
         only direct aid from the Federal Government.  (Report Federal grants
         channeled through the states as Intergovernmental Revenue from State
         Governments at the local government level.)

         Excludes amounts received by state governments which are distributed to
         individuals without discretion as to how they are disbursed (e.g., certain
         veterans benefits); rental or sale of buildings, property, or commodities to
         the Federal Government (report at appropriate General Charges or Miscellaneous
         General Revenue code); taxes on Federal property (report at Property Taxes,
         code T01); and proceeds from sale, liquidation, or earnings of Federal
         securities (nonrevenues except for earnings, reported at U20).

         Also excludes charges for utility services to Federal Government (report at
         appropriate Utility Revenue code); payments-in-lieu-of-taxes from independent
         special district housing authorities even though they may be designated
         locally as "Federal" agencies (report at Intergovernmental Revenue from Local
         Governments); and value of noncash assistance (e.g., gifts of food, property,
         land, etc.).
             Code: B01            ITEM: Air transportation

             Includes: Federal aid for construction, operation, and support of public
                       airports; and other distributions from the Federal Airport and
                       Airway Trust Fund.

             Code: B21            ITEM: Education

             Includes: Federal aid for Federally-impacted areas (PL 815 and 874);
                       migrant and bilingual education; Indian education; Head Start
                       program; and grants and contractual amounts received by insti-
                       tutions of higher education for education or for research and
                       development programs.

             Excludes: Grants for agricultural experiment stations and extensions (use
                       code B54) and aid for library services (use code B89).

             Code: B22            ITEM: Employment Security Administration

             Includes: Federal aid for administration of the cooperative Federal-state
                       unemployment compensation system, public employment offices and
                       related services, and veterans' readjustment allowances; and
                       determination of eligibility for Social Security disability
                       benefits.

             Excludes: Federal grants for Job Training Partnership Act (JTPA) and
                       occupational health and safety (use code B89 for both).

             Code: B30            ITEM: General Local Government Support

             Includes: Federal aid which may be applied at the discretion of the
                       receiving government to any of its basic functions or purposes;
                       payments-in-lieu-of-taxes; and aid received distinctively as
                       reimbursement for Federal programs or facilities which have
                       resulted in loss of state or local tax revenue.

             Excludes: School aid in Federally-affected areas (use code B21) and
                       shared revenues from national forests, grazing lands, mineral
                       leases, etc. (use code B89).

                Notes: Effective with fiscal 1988 data, includes amounts for Federal
                       tax relief programs previously reported at code B28.

             Code: B42            ITEM: Health and Hospitals

             Includes: Federal aid for alcohol, drug abuse, and mental health; commu-
                       nicable disease control; maternal and child health; special
                       supplemental food program (WIC); environmental health; and care of
                       veterans in state hospitals, including construction of facilities.

             Excludes: Federal aid for medical care under public assistance programs
                       such as Medicaid even if received by a public hospital, for
                       care in nursing homes not associated with hospitals, or for
                       payments to vendors for medical care in public assistance cases
                       (use code B79); and hospital charges received on behalf of
                       individuals under Medicare or other Federal insurance-type
                       arrangements (report at Public Hospital Charges, code A36).

             Code: B46            ITEM: Highways (including roads and streets)

             Includes: Federal aid distributed from the Federal Highway Trust or other
                       funds for approved projects and for highway safety.

             Excludes: Federal grants for urban mass transit (use code B94).

             Code: B50            ITEM: Housing and Community Development

             Includes: Federal aid for construction or operation of public housing;
                       rent subsidy programs (e.g., "Section 8" funds); and rural,
                       urban, and community development.

             SUB-CATEGORY: Natural Resources

                 Code: B54            ITEM: Agriculture

                 Includes: Federal aid for agricultural experiment stations and
                           extension services; inspection of meat, poultry, and other
                           agricultural products; and agricultural research.

                 Excludes: Federal grants for school nutrition and milk programs (use
                           code C21); special supplemental food program, or WIC (use
                           code B42); food stamp program (use code B79); and value of
                           food commodities distributed to states (nonrevenues).

                 Code: B59            ITEM: Other Natural Resources

                 Includes: Federal aid for forests and grasslands; soil, water, and
                           energy conservation; flood prevention and drainage; fish and
                           wildlife management; and mine reclamation and safety.

                 Excludes: Federal aid for parks and recreation and shared revenue
                           from national forests, grazing lands, mineral leasing,
                           flood control lands, etc. (use code B89 for both).

             Code: B79            ITEM: Public Welfare

             Includes: Federal aid for categorical programs (Aid to Families with
                       Dependent Children, or AFDC); medical assistance programs
                       (Medicaid) even if received by a public hospital; care in
                       nursing homes not associated with hospitals; food stamp
                       administration; child welfare services; low-income energy
                       assistance; social and community services block grants; refugee
                       assistance; work incentives program (WIN); and related
                       administration.

             Excludes: Federal aid for school nutrition and milk programs (use code C21)
                       and special supplemental food program, or WIC (use code B42).


             Code: B80            ITEM: Sewerage

             Includes: Federal aid for construction, operation, and maintenance
                       of sewers, sewage disposal facilities, wastewater treatment
                       plants, water pollution control facilities, etc.



























             SUB-CATEGORY: Utilities

                 Federal aid received in support of utility projects other than
                 receipt of charges for utility services and commodities provided
                 to the Federal Government.

                 These codes were added to the Classification Manual, effective with
                 fiscal year 1988 data, as a service to users who wanted to track
                 better the fiscal activities of utilities.  They represent items
                 previously classed at other codes under this same category (i.e., B47
                 and B89).  Despite their utility suffixes, however, these codes
                 continue to be classified as general revenue.

                 Code: B91            ITEM: Water Supply Systems

                 Includes: Federal aid for maintenance, operation, and construction of
                           public water supply systems, water purification plants, etc.

                 Excludes: Reimbursements for sale of water to Federal Government as a
                           regular utility customer (use code A91) and grants related to
                           water irrigation, conservation, and management even if project
                           is designed for future water supply uses (use code B59).

                 Code: B92            ITEM: Electric Power Systems

                 Includes: Federal aid for maintenance, operation, and construction
                           of public electric power generating plants and related
                           transmission systems.

                 Excludes: Reimbursements for sale of electric power to Federal
                           Government as a regular utility customer (use code A92)
                           and grants for water development projects which have an
                           electricity generating component (use code B59).

                 Code: B93            ITEM: Gas Supply Systems

                 Includes: Federal aid for maintenance, operation, and construction
                           of public natural gas supply and distribution systems.

                 Excludes: Reimbursements for sale of natural gas to Federal Government
                           as a regular utility customer (use code A93).

                 Code: B94            ITEM: Public Mass Transit Systems

                 Includes: Federal aid for maintenance, operation, and construction
                           of public mass transit systems (buses, subways, commuter
                           railroads, urban mass transit, and the like).

                 Excludes: Grants for other modes of transportation, such as airports
                           (use code B01) and highways (use code B46).

                    Notes: Prior to fiscal year 1988, these revenues were classified
                           at code B47.

             Code: B89            ITEM: All Other

             Includes: Federal aid for specified purposes other than categories shown
                       above (e.g., economic development, libraries, civil defense and
                       militias, disaster assistance, public broadcasting, parks and
                       recreation, water transportation) and for multipurpose
                       activities (e.g., Job Training Partnership Act, or JTPA, shared
                       revenue from national forests, grazing lands, mineral leasing,
                       and flood control lands) even if they must be spent on specified
                       types of activities, such as schools and roads.

         CATEGORY: Intergovernmental Revenue from the State Government

         Amounts received directly from the state government, including Federal aid
         passed through the state government and state aid channeled through inter-
         mediate local governments (e.g., counties) which have no discretion as to
         its distribution.

         Includes state grants-in-aid, regardless of basis of distribution; local share
         of state-collected taxes (see Section 7.21); payments-in-lieu-of-taxes on state
         property; and reimbursement for services performed for state government (e.g.,
         care of state prisoners in local jails, construction or maintenance of state
         highway facilities, etc.).

         Excludes proceeds from sale of buildings, property, or commodities (report at
         appropriate Miscellaneous General Revenue code); charges for utility services
         to state government (report at appropriate Utility Revenue code); taxes on
         state government facilities (use code T01); contributions from state for
         locally-administered employee retirement systems (use code X05); and retained
         share or collection "fee" on state-imposed taxes collected by local governments
         (report at appropriate Tax code).

         Also excludes proceeds from the sale, liquidation, or earnings of state
         government securities held by local governments (nonrevenues except for
         earnings, reported at code U20); receipt of locally-imposed taxes collected
         by state acting as an agent for local governments (report at appropriate Tax 
         code); agency receipts (i.e., amounts received for transmittal to other
         governments or individuals without discretion as to how they are disbursed
         by the agent government); and value of noncash assistance (e.g., gifts of
         property, commodities, etc.).

         This category relates only to Federal and local government finances since the
         Census Bureau does not recognize state-to-state payments as intergovernmental
         transactions in its classification schema.

             Code: C21            ITEM: Education

             Includes: State aid for support of local schools; redistribution of
                       Federal aid for education (e.g., Chapter 1, Children with
                       Disabilities, Eisenhower Math and Science, Drug Free Schools,
                       Chapter 2 block grants, and child nutrition act); handicapped,
                       special, and vocational education and rehabilitation; student
                       transportation; equalization aid; school health; local community
                       colleges; adult education; school buildings; and property tax
                       relief related strictly to school funding.

             Excludes: State grants for libraries (use code C89); state expenditures on
                       behalf of local schools for textbooks, buses, school buildings,
                       etc. (report as state direct expenditure for education); and
                       value of donated food commodities (nonrevenue).






















             Code: C30            ITEM: General Local Government Support 

             Includes: State aid which may be applied at the discretion of the
                       receiving government to any of its basic functions or purposes;
                       local share of state-imposed taxes or of profits from alcoholic
                       beverage monopolies; per capita aid; state revenue sharing;
                       payments-in-lieu-of-taxes; and aid received distinctively as
                       reimbursement for state-mandated tax relief programs or for
                       facilities which have resulted in loss of local tax revenue
                       (e.g., property tax relief, homestead exemptions, etc.).

             Excludes: Amounts received as reimbursement for services performed by local
                       governments for the state government (report at appropriate
                       Intergovernmental Revenue from State Government code); shared
                       state taxes or property tax relief related strictly to school
                       funding (use code C21); shared state taxes with specific uses,
                       such as gasoline taxes designated for highway purposes (report
                       those with single uses at appropriate Intergovernmental Revenue
                       from State code and those with multipurpose uses at code C89);
                       and share of state taxes expressly for local employee retirement
                       systems even if they are first passed through the parent govern-
                       ment (report at Employee Retirement Contributions from Other
                       Governments, code X05).

                Notes: Effective with fiscal 1988 data, includes amounts for state
                       tax relief programs previously reported at code C28.

             Code: C42            ITEM: Health and Hospitals

             Includes: State aid for local health programs; maternal and child health;
                       alcohol, drug abuse, and mental health; environmental health;
                       nursing aid; hospital financing (including construction); and
                       hospitalization of patients in local government hospitals.

             Excludes: State aid for medical care under public assistance programs such
                       as Medicaid even if received by a public hospital, for care in
                       nursing homes not associated with hospitals, and for payments to
                       vendors for medical care in public assistance cases (use code
                       C79); and hospital charges received on behalf of individuals
                       under state insurance-type arrangements (use code A36).

             Code: C46            ITEM: Highways

             Includes: State aid for construction, improvement, or maintenance of
                       streets, highways, bridges, tunnels, etc.; distribution of state
                       fuel taxes; and aid for debt service on local highway debt.

             Excludes: State grants for urban mass transit (use code C94).

             Code: C50            ITEM: Housing and Community Development

             Includes: State aid for construction or operation of public housing; rent
                       subsidy programs; repair and renovation of existing houses; and
                       rural, urban, and community  development.

             Code: C79            ITEM: Public Welfare

             Includes: State aid for public welfare purposes; medical care and related
                       administration under public assistance programs (including
                       Medicaid) even if received by a public hospital; care in
                       nursing homes not associated with hospitals; Federal categorical
                       assistance (e.g., pass through of Aid to Families with Dependent
                       Children, or AFDC); noncategorical assistance (e.g., home relief,
                       emergency assistance); and administration of local welfare
                       programs.  For Federal Government includes revenue from state
                       governments for increased benefits under the Supplemental
                       Security Income program (SSI).

             Code: C80            ITEM: Sewerage

             Includes: State aid for construction, operation, and maintenance of
                       sewers, sewage disposal facilities, wastewater treatment plants,
                       water pollution control facilities, etc.

             SUB-CATEGORY: Utilities

                 State aid received in support of utility projects other than receipt
                 of charges for utility services and commodities provided to the state
                 government.

                 Excludes contributions from parent government (interfund transfers)
                 and contributions from other participating public utilities for the
                 construction of a joint utility project or for debt service on such a
                 project IF the monies are treated as part of the recipient utility's
                 basic rate structure (report at Electric Power Utility revenue, code A92).

                 These codes were added to the Classification Manual, effective with
                 fiscal year 1988 data, as a service to users who wanted to track
                 better the fiscal activities of utilities.  They represent items
                 previously classed at other codes under this same category (i.e.,
                 C47 and C89).  Despite their utility suffixes, however, these codes
                 continue to be classified as general revenue.

                 Code: C91            ITEM: Water Supply Systems

                 Includes: State aid for maintenance, operation, and construction of
                           public water supply systems, water purification plants, etc.

                 Excludes: Reimbursements for sale of water to state government as
                           a regular utility customer (use code A91) and water
                           conservation unrelated to utility operations (use code C89).

                 Code: C92            ITEM: Electric Power Systems

                 Includes: State aid for maintenance, operation, and construction of
                           public electric power generating plants and related
                           transmission systems.

                 Excludes: Reimbursements for sale of electric power to state govern-
                           ment as a regular utility customer (use code A92).

                 Code: C93            ITEM: Gas Supply Systems

                 Includes: State aid for maintenance, operation, and construction of
                           public natural gas supply and distribution systems.

                 Excludes: Reimbursements for sale of natural gas to state government
                           as a regular utility customer (use code A93).

                 Code: C94            ITEM: Public Mass Transit Systems

                 Includes: State aid for maintenance, operation, and construction of
                           public mass transit systems (buses, subways, commuter
                           railroads, urban mass transit, and the like).

                 Excludes: Grants for other modes of transportation, such as airports
                           (use code C89) or highways and ferries (use code C46); and
                           for pupil transportation (use code C21).

                    Notes: Prior to fiscal year 1988, these revenues were classified
                           at code C47.

             Code: C89            ITEM: All Other

             Includes: State aid for specific purposes other than categories shown
                       above and for multipurpose activities, such as public works in
                       general.

             Excludes: State aid (other than shared taxes reported at code C30)
                       expressly for local employee retirement systems even if they
                       are first passed through the parent government (report at
                       Employee Retirement Contributions from Other Governments,
                       code X05).

         CATEGORY: Intergovernmental Revenue from Local Governments

         Amounts received from local governments for use in performing specific
         functions, for general financial assistance, or as share of tax proceeds.

         For state governments, includes local government share of state-administered
         programs requiring local financial participation; reimbursements from locals
         for services provided to them by state, such as auditing local accounts;
         monies from localities to pay debt service on state debt issued for the
         benefit of local governments; and repayments of contingent loans and advances
         previously extended to local governments.

         For local governments, includes financial support from other local governments
         for activities administered by recipient locality, including its dependent
         agencies; state aid channeled through other local governments which have some
         discretion as to its distribution; reimbursements for services provided to
         other local governments (other than for utility services); and payments-in-
         lieu-of-taxes on other local governments' property.

         For state governments, excludes monies received from local governments and
         held in an agency capacity on their behalf (e.g., to repay interest and
         principal on local debt); receipt of state-imposed taxes or other state
         revenues collected by local governments acting as agents for state; taxes on
         local government facilities (report last two exclusions at appropriate Tax
         code); proceeds from the sale, liquidation, or earnings of local government
         securities held by the state (nonrevenues except for earnings, reported
         at code U20); proceeds from sale of buildings, property, or commodities
         (report at appropriate Miscellaneous General Revenue code); charges for
         utility services to local governments (report at appropriate Utility Revenue
         code); and contributions from local governments for employee retirement or
         other insurance trust systems (report at appropriate Insurance Trust code).

         For local governments, excludes state grants or shared taxes to be transmitted
         through government with no discretion as to their distribution (report at
         Intergovernmental Revenue from State Governments for final recipient local
         government); receipt of taxes or other charges collected by another local
         government acting as the receiving government's agent (report at appropriate
         Tax code); proceeds from sale, liquidation, or earnings of local government
         securities held by other localities (nonrevenues except for earnings,
         reported at code U20); taxes on facilities of other local governments (use
         code T01); proceeds from sale of buildings, property, or commodities (report
         at appropriate Miscellaneous General Revenue code); charges for utility
         services to other local governments (report at appropriate Utility Revenue
         code); and payments-in-lieu-of-taxes from private organizations like private
         colleges (use code U99).

             Code: D11            ITEM: Interschool System Revenue

             Includes: Local aid received by school system from other school systems
                       (dependent or independent).

                Notes: Applies only to finances of school systems.

             Code: D21            ITEM: Education

             Includes: For state governments, rental on school buildings constructed
                       by state school building authorities and leased to local govern-
                       ments; and local share of school building construction projects.

             Excludes: Local aid received by a dependent or independent school system
                       from other school systems (use code D11) and contributions from
                       parent government of a dependent school system (nonrevenues).

             Code: D30            ITEM: General Local Government Support

             Includes: Local aid which may be applied at the discretion of the
                       receiving government to any of its basic functions or purposes,
                       including payments-in-lieu-of-taxes.

             Code: D42            ITEM: Health and Hospitals

             Includes: Local aid for hospitalization of patients in other government
                       hospitals and local share of state or other local government-
                       administered programs.

             Excludes: Care in nursing homes not associated with hospitals (use code
                       D79) and payments from parent government of a dependent
                       hospital (nonrevenues).

             Code: D46            ITEM: Highways

             Includes: Local aid as reimbursement for signals and traffic lights
                       maintenance and for share of costs of joint highway projects.

             Code: D50            ITEM: Housing and Community Development

             Includes: Local aid as share of joint housing projects.

             Code: D79            ITEM: Public Welfare

             Includes: Local aid as share of state-administered welfare programs.

             Code: D80            ITEM: Sewerage

             Includes: Local aid as contributions or share of joint sewer projects;
                       and charges for sewer services from local governments.
         
             SUB-CATEGORY: Utilities

                 Local aid received in support of utility projects other than receipt
                 of charges for utility services and commodities provided to local
                 governments.

                 Excludes contributions from parent government (interfund transfers)
                 and contributions from other participating public utilities for the
                 construction of a joint utility project or for debt service on such a
                 project IF the monies are treated as part of the recipient utility's
                 basic rate structure (report at Electric Power Utility revenue, code A92).

                 These codes were added to the Classification Manual, effective with
                 fiscal year 1988 data, as a service to users who wanted to track
                 better the fiscal activities of utilities.  They represent items
                 previously classed at other codes under this same category (i.e.,
                 D47 and D89).  Despite their utility suffixes, however, these codes
                 continue to be classified as general revenue.

                 Code: D91            ITEM: Water Supply Systems

                 Includes: Local aid for maintenance, operation, and construction of
                           public water supply systems, water purification plants, etc.

                 Excludes: Reimbursements for sale of water to local governments as
                           regular utility customers (use code A91).

                 Code: D92            ITEM: Electric Power Systems

                 Includes: Local aid for maintenance, operation, and construction of
                           public electric power generating plants and related
                           transmission systems.

                 Excludes: Reimbursements for sale of electric power to local
                           governments as regular utility customers (use code A92).

                 Code: D93            ITEM: Gas Supply Systems

                 Includes: Local aid for maintenance, operation, and construction of
                           public natural gas supply and distribution systems.

                 Excludes: Reimbursements for sale of natural gas to local governments
                           as regular utility customers (use code A93).

                 Code: D94            ITEM: Public Mass Transit Systems

                 Includes: Local aid for maintenance, operation, and construction of
                           public mass transit systems (buses, subways, commuter
                           railroads, urban mass transit, and the like).

                 Excludes: Grants for other modes of transportation, such as airports
                           (use code D89) and highways (use code D46).

                    Notes: Prior to fiscal year 1988, these revenues were classified
                           at code D47.

             Code: D89            ITEM: All Other

             Includes: Local aid received for specific purposes other than categories
                       shown above and for multipurpose activities, such as public
                       works in general and share of costs for courts, central
                       computer services, etc.

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                              General Purpose Governments            
                                                               Large                  
                                                               city-   Other  Special
         CODE - TYPE OF REVENUE            Federal  State  DC  county  local  district

         ---From Federal Government:

         B01-Air Transportation...........    N       .     .     .      N       .
         B21-Education....................    N       .     .     .      .       .
         B22-Employment Security
               Administration.............    N       .     .     N      N       N
         B30-General Local Support........    N       .     .     .      .       N
         B42-Health and Hospitals.........    N       .     .     .      .       .
         B46-Highways.....................    N       .     .     .      .       .
         B50-Housing and Community
               Development................    N       .     .     .      .       .
         B54-Agriculture..................    N       .     N     N      N       N
         B59-Other Natural Resources......    N       .     N     N      N       .
         B79-Public Welfare...............    N       .     .     .      .       .
         B80-Sewerage.....................    N       .     .     .      N       .
         B91-Water Supply Utility.........    N       .     .     .      .       .
         B92-Electric Power Utility.......    N       .     .     .      .       .
         B93-Gas Supply Utility...........    N       .     .     .      .       .
         B94-Public Mass Transit Utility..    N       .     .     .      .       .
         B89-All Other....................    N       .     .     .      .       .

         ---From State Government:

         C21-Education....................    N       N     N     .      .       .
         C30-General Local Support........    N       N     N     .      .       N
         C42-Health and Hospitals.........    N       N     N     .      .       .
         C46-Highways.....................    N       N     N     .      .       .
         C50-Housing and Community
               Development................    N       N     N     .      .       .
         C79-Public Welfare...............    .       N     N     .      .       .
         C80-Sewerage.....................    N       N     N     .      N       .
         C91-Water Supply Utility.........    N       N     N     .      .       .
         C92-Electric Power Utility.......    N       N     N     .      .       .
         C93-Gas Supply Utility...........    N       N     N     .      .       .
         C94-Public Mass Transit Utility..    N       N     N     .      .       .
         C89-All Other....................    .       N     N     .      .       .

                                              General Purpose Governments            
                                                               Large                  
                                                               city-   Other  Special
         CODE - TYPE OF REVENUE            Federal  State  DC  county  local  district

         ---From Local Governments:

         D11-Interschool Revenue..........    N       N     N     N      N       N
         D21-Education....................    N       .     .     .      .       .
         D30-General Local Support........    N       .     .     .      .       N
         D42-Health and Hospitals.........    N       .     .     .      .       .
         D46-Highways.....................    N       .     .     .      .       .
         D50-Housing and Community
               Development................    N       N     .     .      .       .
         D79-Public Welfare...............    N       .     .     .      .       .
         D80-Sewerage.....................    N       .     .     .      N       .
         D91-Water Supply Utility.........    N       .     .     .      .       .
         D92-Electric Power Utility.......    N       .     .     .      .       .
         D93-Gas Supply Utility...........    N       .     .     .      .       .
         D94-Public Mass Transit Utility..    N       .     .     .      .       .
         D89-All Other....................    N       .     .     .      .       .

         * Shows whether data are collected () or not collected (N) for that type.

         ----------------------------------------------------------------------------- 
                          DESCRIPTIONS OF CURRENT CHARGES CATEGORIES
         ----------------------------------------------------------------------------- 
         
         Amounts received from the public for performance of specific services which
         benefit the person charged and from sale of commodities or services other
         than utilities and liquor stores.  Includes fees, maintenance assessments,
         and other reimbursements for current services; rents and sales derived from
         commodities or services furnished incident to the performance of particular
         functions; gross income of commercial enterprises; and the like.  Charges
         are distinguished from license taxes, which are privileges granted by a
         government or fees collected to finance regulatory activities.

         Excludes special assessments (use code U01); amounts received from other
         governments in return for services provided (report at appropriate Intergov-
         ernmental Revenue code); and interdepartmental charges and interfund
         transfers within the same government (see Section 6.6).

         Report current charges on a gross basis without deducting the cost of
         providing related services.

         See Section 7.23 for more detailed information on current charges revenue.
         
         CATEGORY: Federal-Only Charges

             Code: A06               ITEM: National Defense and International Relations

             Includes: Sale of defense materials and stocks to non-Federal sources.

             Code: A14               ITEM: Postal Service

             Includes: Sale of postage and commemorative stamps, postal insurance
                       fees, fees for certified and registered mail, and other
                       charges by the U.S. Postal Service.

         CODE: A01               ITEM: Air Transportation (Airports)

         Includes: Hangar rentals, landing fees, terminal and concession rents,
                   sale of aircraft fuel and oil, parking fees at airport lots,
                   and other charges for use of airport facilities or for
                   services associated with their use.

         CODE: A03               ITEM: Miscellaneous Commercial Activities

         Includes: Charges of publicly-owned commercial enterprises not
                   classified elsewhere, such as markets, cement plants,
                   cemeteries, etc.

         Excludes: Charge revenues from utilities (use codes A91 - A94); liquor
                   stores (use code A90); sewerage facilities (use code A80); and
                   landfills, garbage collection, and other solid waste management
                   activities (use code A81).

         CATEGORY: Education Charges

             SUB-CATEGORY: Elementary and Secondary Education 

             Charges derived from the operation of public elementary and secondary
             school systems.













































                 CODE: A09               ITEM: School Lunch

                 Includes: Gross receipts from sale of milk and school lunches.

                 CODE: A10               ITEM: School Tuition

                 Includes: Amounts from pupils and parents for tuition and
                           transportation.

                 Excludes: Tuition received from other governments (report at
                           appropriate education Intergovernmental Revenue code,
                           B21, C21, or D21).

                 CODE: A12               ITEM: Other Elementary-Secondary Education 

                 Includes: Revenues from athletic contests, sale or rental of
                           textbooks, student activity funds, and the like.

             SUB-CATEGORY: Higher Education 

             These data are obtained largely through the Integrated Postsecondary
             Education Data Survey (IPEDS).

                 CODE: A16               ITEM: Auxiliary Enterprises      

                 Includes: Gross receipts from sales and charges by dormitories,
                           cafeterias, athletic contests, lunchrooms, student
                           activities, bookstores, and similar commercial activities
                           financed wholly or largely through these charges.

                 Excludes: Receipts from sale of products incidental to operation
                           of a higher education program (use code A18).

                    Notes: This code applies only to state governments; report
                           any similar revenues by local government institutions
                           of higher education at code A18.

                 CODE: A18               ITEM: Other Higher Education

                 Includes: Tuition, laboratory fees, and other charges of higher
                           education facilities other than auxiliary enterprises.
                           For local governments includes all charges related to
                           institutions of higher education.

                 Excludes: Charges of hospitals for general public operated by
                           universities (use code A36).

             CODE: A21               ITEM: Other Education Charges, NEC

             Includes: Fees of state schools for blind, deaf, and handicapped;
                       and tuition and fees of state vocational-technical schools
                       which award certificates equal to less than two years of
                       college.

             Excludes: Library charges and fees (use code A89); payments from
                       local governments for state school building authorities
                       (use code D21); and charges of university-operated hospitals
                       and of handicapped institutions primarily for physical
                       rehabilitation or care (use code A36).

                Notes: This code applies only to state governments; allocate
                       all local government education charges among codes A09,
                       A10, A12, and A18.

         CODE: A36               ITEM: Public Hospitals 

         Includes: Charges from patients, private insurance companies, and public
                   insurance programs (such as Medicare) of public hospitals and
                   of institutions for care and treatment of the handicapped; and
                   receipts of hospital canteens, cafeterias, gift shops, etc.

         Excludes: Revenues received from other governments for care of patients
                   (report at health and hospitals Intergovernmental Revenue,
                   codes B42, C42, or D42); fees of state schools for blind, deaf,
                   or handicapped (use code A21); and health clinics operating on
                   outpatient basis only (use code A89).

            Notes: As of fiscal year 1973-74 data, intergovernmental aid for hospital
                   medical care under public assistance programs (such as Medicaid)
                   has been reported at code B79 or C79 rather than code A36; all other
                   intergovernmental aid for hospital medical care should be reported
                   at code B42, C42, or D42.  Other than insurance-type programs cited
                   above, do not report payments from other governments at this code.

         CATEGORY: Highway Charges

         Excludes special assessments levied on homeowners who benefit from
         specific street or sidewalk improvements and impact fees to build public
         roads in new developments (use code U01).

             CODE: A44               ITEM: Regular Highways

             Includes: Reimbursements for street construction and repairs; fees
                       for street cuts and special traffic signs; and maintenance
                       assessments for street lighting, snow plowing, and other
                       highway or street services unrelated to toll facilities.

             CODE: A45               ITEM: Toll Highways

             Includes: Fees from turnpikes, toll roads, bridges, ferries, and
                       tunnels; rents and other revenue from concessions (service
                       stations, restaurants, etc.); and other charges for use of
                       toll facilities.

         CODE: A50               ITEM: Housing and Community Development Charges

         Includes: Gross rentals, tenant charges, and other revenue from operation
                   of public housing projects; and fees for housing mortgage
                   insurance (e.g., FHA-insured loans).

         Excludes: Receipts from sale of property (use code U10) and payments-in-
                   lieu-of-taxes from housing projects operated by other
                   governments, whether independent housing authorities (special
                   districts) or dependent housing agencies of general purpose
                   governments (report at housing and community development
                   Intergovernmental Revenue, codes B50, C50, or D50).

         CATEGORY: Natural Resources Charges

             The codes under this category apply largely to the Federal and state
             governments.  Report all natural resource charges of local governments
             at code A89, except for special districts (use code A59).

             CODE: A54               ITEM: Agriculture 

             Includes: Receipts from sale of products from agricultural experiment
                       station farms; revenue from agricultural fairs and shows;
                       agricultural laboratory charges (such as milk testing fees);
                       Federal Government sale of surplus crops and commodities; and
                       other related agricultural charges.

             Excludes: Fees related to regulation or inspection activities (report
                       at Occupation and Businesses License Taxes, NEC, code T28);
                       and special assessments for capital outlay improvements
                       benefiting specific land owners (use code U01).

             CODE: A56               ITEM: Forestry 

             Includes: Sale of timber, nursery stock, and other products from
                       Federal and state forests; and reimbursements for forest
                       fire suppression services.

             CODE: A59               ITEM: Other Natural Resources 

             Includes: Sale of minerals and other natural products (other than
                       agricultural or forestry products) from public lands.  For
                       Federal Government also includes fees and rentals from
                       public grazing and grasslands, fees for uranium enrichment,
                       and sale of electric power (e.g., by Bonneville Power
                       Administration and Tennessee Valley Authority).

             Excludes: Royalties for privilege of developing public land (use code
                       U41); and taxes on the removal (severance) of natural
                       resources measured by value or quantity (use code T53).

         CODE: A60               ITEM: Parking Facilities
     
         Includes: Revenue from on-street and off-street parking meters and
                   charges and rentals from locally-owned parking lots or
                   public garages.

         CODE: A61               ITEM: Parks and Recreation 

         Includes: Gross revenue of facilities operated by a government (swimming
                   pools, recreational marinas and piers, golf courses, skating
                   rinks, museums, zoos, etc.); auxiliary facilities in public
                   recreation areas (camping areas, refreshment stands, gift
                   shops, etc.); lease or use fees from stadiums, auditoriums, and
                   community and convention centers; and rentals from concessions
                   at such facilities.


































         CATEGORY: Sanitation Charges

             CODE: A80               ITEM: Sewerage 

             Includes: Charges for sewage collection and disposal, including
                       sewer connection fees.

             Excludes: Impact fees to build sewers in new developments (use code U01).

                Notes: For combined water-sewer system, include segregable amounts
                       derived from sewerage activities.

             CODE: A81               ITEM: Solid Waste Management 

             Includes: Fees for garbage collection and disposal; operation of
                       landfills; sale of recyclable materials; cleanup of hazard-
                       ous wastes; and sale of electricity, gas, steam, or other
                       by-products of waste resource recovery or cogeneration
                       facilities.

             Excludes: Fees related to regulation or inspection activities (report
                       at Occupation and Businesses License Taxes, NEC, code T28).

                Notes: Effective with 1988 data, this category was (1) expanded to
                       include the Federal and state governments, formerly classed
                       at code A89, and (2) renamed from "Other Sanitation Charges."

         CODE: A87               ITEM: Water Transport and Terminals 

         Includes: Canal tolls (including Panama Canal), rents from leases,
                   concession rents, and other charges for use of commercial
                   or industrial water transport and port terminal facilities
                   and related services.

         Excludes: Fees and rents related to water facilities provided for recre-
                   ational purposes, such as marinas, public docks, etc. (use code
                   A61); and toll ferries (use code A45).

         CODE: A89               ITEM: All Other General Current Charges

         Includes: Charges not covered by any of the above categories, such as
                   those derived from court and recording fees, police, fire,
                   correction, defense, public welfare, public nursing homes,
                   public libraries, and health activities.  For Federal Government
                   also includes fees on utilities for nuclear waste disposal and
                   assessments on banks and savings and loans institutions for
                   insurance on savers' deposits.

         Excludes: Reimbursements and special assessments for capital outlay
                   improvements which benefit specific property owners (use
                   code U01) and sale of used vehicles, surplus equipment, scrap
                   materials, etc. which do not relate to any specific function or
                   service (report at Miscellaneous General Revenue code U11 or U99).















         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                              General Purpose Governments            
                                                               Large                  
                                                               city-   Other  Special
         CODE - TYPE OF CHARGE             Federal  State  DC  county  local  district

         ---Federal-Only Charges:
         A06-National Defense and
               International Relations....    .       N     N    N       N       N
         A14-Postal Service...............    .       N     N    N       N       N

         ---Other Charges:
         A01-Air Transportation (Airports)    .       .     .    .       .       .
         A03-Miscellaneous Commercial
                Activities................    N       .     .    .       .       N

         ---Education:
            -Elementary and Secondary--
         A09-School Lunch.................    N       .     .    .       .       N
         A10-School Tuition...............    N       .     .    .       .       N
         A12-Other........................    N       .     .    .       .       N
            -Higher Education--
         A16-Auxiliary Enterprises........    N       .     N    N       N       N
         A18-Other........................    N       .     .    .       .       N
         A21-Other Education, NEC.........    .       .     N    N       N       N

         A36-Public Hospitals.............    .       .     .    .       .       .

         ---Highways:
         A44-Regular Highways.............    N       .     .    .       .       .
         A45-Toll Highways................    N       .     .    .       .       N

         A50-Housing and Community
                Development...............    .       .     .    .       .       .

         ---Natural Resources:
         A54-Agriculture..................    .       .     N    N       N       N
         A56-Forestry.....................    .       .     N    N       N       N
         A59-Other Natural Resources......    .       .     N    N       N       .

         A60-Parking Facilities...........    N       N     .    .       .       .
         A61-Parks and Recreation.........    .       .     .    .       .       .

         ---Sanitation:
         A80-Sewerage.....................    N       .     .    .       .       .
         A81-Solid Waste Management.......    .       .     .    .       .       .

         A87-Water Transport and
               Terminals..................    .       .     .    .       .       .
         A89-All Other....................    .       .     .    .       .       .

         * Shows whether data are collected () or not collected (N) for that type.

         ----------------------------------------------------------------------------- 
                     DESCRIPTIONS OF MISCELLANEOUS GENERAL REVENUE CATEGORIES
         -----------------------------------------------------------------------------
         
         Miscellaneous general revenues which do not fall into one of the above Tax,
         Intergovernmental Revenue, or Current Charges categories.

             CODE: U01               ITEM: Special Assessments

             Includes: Compulsory contributions and reimbursements from owners of
                       property who benefit from specific public improvements; and
                       impact fees to fund extension of water, sewer, roads, and other
                       infrastructure facilities in new developments.  These contri-
                       butions and reimbursements are designed to defray all or part
                       of the cost of such improvements, either directly or through
                       payment of principal and interest on debt issued to finance
                       them.  Generally, special assessments are apportioned according
                       to assumed benefits to the property affected by the improve-
                       ments.  They cover not only general improvements--such as street
                       paving, sidewalks, highway construction, sewer lines, drainage
                       and irrigation projects--but also utility improvements, such as
                       water lines.

             Excludes: Proceeds from sale of special assessment bonds (report at
                       appropriate Debt code); maintenance assessments for recurrent
                       services such as street lighting, leaf removal, and weed control
                       (report at appropriate Current Charges code); and reimbursements
                       or contributions for capital outlays incurred under voluntary
                       agreements, such as cooperative state government construction
                       projects (use code U99) and joint state-local or local-local
                       construction projects (report at appropriate Intergovernmental
                       Revenue code).

                Notes: Special assessments and property taxes are distinguished from
                       each other by these features:  taxes are levied on all property
                       owners on the basis of the property's assessed value and are
                       generally used to support a wide range of public activities.
                       In contrast, special assessments are levied on just certain
                       property owners who have benefited from specific public
                       improvements and are used to fund or repay their costs.

                       Special assessments and current charges are distinguished from
                       each other by these features: special assessments are generally
                       for one-time capital improvements, such as paving a street,
                       installing street lights or sidewalks, etc.  Current charges,
                       on the other hand, are for ongoing, recurrent services such as
                       street cleaning, street lighting, leaf removal, etc., even
                       though they may be labelled as "maintenance assessments" or
                       even just "assessments."

             CATEGORY: Sale of Property

             Amounts received from sale of real property, buildings, improvements to
             them, land easements, rights-of-way, and other capital assets (buses,
             automobiles, etc.), including proceeds from sale of operating and
             nonoperating property of utilities.  Includes sale of property to other
             governments.

             Excludes proceeds from sale of securities (nonrevenues); sale of property
             to meet delinquent taxes or tax liens (report at Property Tax, code T01);
             and sale of commodities, unclaimed or confiscated property, and minor
             personal property (use U99).
         
                 CODE: U10               ITEM: Housing and Community Development

                 Includes: Proceeds from sale of land and improvements associated with
                           housing and community development programs.

                 CODE: U11               ITEM: Other           

                 Includes: Proceeds from sale of property other than in connection
                           with housing and community development programs.

             CODE: U20               ITEM: Interest Earnings

             Includes: Amounts from interest on all interest-bearing deposits and
                       accounts; accrued interest on investment securities sold;
                       interest on funds held for construction; and interest related
                       to public debt for private purposes.

             Excludes: Interest on deposits and investments of employee retirement and
                       other insurance trust funds (report at appropriate Insurance
                       Trust Revenue code); dividends from investments (use code U99);
                       accrued interest on bonds issued by the government (deduct from 
                       Interest on Debt, codes I89 or I91-I94); recorded profits on
                       sale of investments (use code U99); and accrued interest on the
                       purchase of investments (deduct from Interest Earnings reported
                       for those investments).

                Notes: Effective with fiscal year 1988 data, the treatment of interest
                       revenue related to public debt for private purposes was changed.
                       Now, report interest revenue in an amount equal to the interest
                       payments (I89) on this type of debt.  Previously, this treatment
                       was limited to mortgage revenue bonds and was classified at
                       code U40.

             CODE: U30               ITEM: Fines and Forfeits

             Includes: Receipts from penalties imposed for violations of law; civil
                       penalties (e.g., for violating court orders); court fees if
                       levied upon conviction of a crime or violation; court-ordered
                       restitutions to crime victims where government actually collects
                       the monies; and forfeits of deposits held for performance
                       guarantees or against loss or damage (such as forfeited bail
                       and collateral).

             Excludes: Penalties relating to tax delinquency (report at appropriate
                       Tax code); library fines (report at Other Charges, code A89);
                       and sale of confiscated property (use code U99).

             CATEGORY: Rents and Royalties
         
             Compensation for temporary possession, use, or development of a building,
             land, other property, or a right.  Unlike rental fees classified under
             General Current Charges, rents reported here are revenues for which there
             are little or no related services provided by the government.

             Rents and royalties are distinguished from each other by these features:
             rents are compensation for the temporary possession of a building, land,
             or some other fixed or immovable object, usually with specific payments
             over a specified period of time.  Royalties are compensation for the use
             or development of land and property or for operating under a right (such
             as a mineral right) and are often based on a share of the proceeds the
             payer earns from these.


                 CODE: U40               ITEM: Rents

                 Includes: Amounts received from temporary possession of a building,
                           land, or other fixed property, such as from grazing fees,
                           timberland leases, rental of unused land or property
                           (including nonoperating property of a government utility),
                           and revenue from leases (or lease bonus payments) of land
                           relating to natural resource exploration and production.

                 Excludes: Rental revenue from functionally classified facilities, such
                           as rent of airport hangars, or where the government provides
                           services in return, such as public housing rents (report as
                           Current Charge for the function involved); and rental revenue
                           from other governments (report at appropriate Intergovern-
                           mental Revenue code).

                    Notes: Prior to FY 1988 data, this code included interest on
                           mortgage revenue bonds equal to the amount reported for
                           interest payments on this type of debt.  (See notes under
                           Interest Earnings, code U20.)

                 CODE: U41               ITEM: Royalties

                 Includes: Compensation or portion of proceeds received by state
                           government for granting the privilege of using or
                           developing property or operating under a right, primarily
                           those related to natural resources, such as oil, gas, and
                           mineral rights.

                 Excludes: Sale of timber and other forestry products from state
                           forests (report at Forestry Charges, code A56).

                    Notes: This code applies only to state governments; report local
                           government royalties at code U40.


             CODE: U50               ITEM: Donations from Private Sources

             Includes: Gifts of cash or securities from private individuals or
                       corporations.

             Excludes: Noncash gifts and donations, such as food, property, buildings,
                       land, commodities, etc. (nonrevenues).

                Notes: Report the entire receipt of nonexpendable bequests even if
                       only the interest income from it can be spent at the
                       government's discretion.

             CODE: U95               ITEM: Net Lottery Revenue

             Includes: Proceeds from the operation of government-sponsored lotteries
                       after deducting the cost of prizes.

                Notes: In terms of lottery exhibit codes, this item is computed by
                       subtracting Z52 (lottery prizes awarded) from Z51 (total ticket
                       sales).  Thus, it includes amounts used for administration that
                       are reported at exhibit code Z43 (see Section 12.2).

             CODE: U99               ITEM: Miscellaneous General Revenue, NEC

             Includes: Dividends on investments (other than insurance trusts funds);
                       recovery of losses charged off in a prior fiscal year; insurance
                       adjustments; payments-in-lieu-of-taxes from private sources;
                       voluntary contributions or reimbursements to defray construction
                       costs of capital improvement projects such as in joint state
                       construction projects; premiums on bonds issued; unemployment
                       compensation contributions from employers for servicing debt
                       issued to cover deficits in these trust funds; recoveries of
                       expenditures made in a prior fiscal year; receipts from escheats
                       and other unclaimed monies; recorded profits from sale of
                       investments; and any other receipts within the definition of
                       general revenue but not classifiable as a Tax, Intergovernmental
                       Revenue, or Current Charge.

             Excludes: Proceeds from borrowing (report at appropriate Debt code); sale
                       of investment securities; interfund transfers or loans;
                       transfers from other agencies of same government (latter three
                       items are nonrevenues); and discounts on bonds issued (noncash
                       transaction).

         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                              General Purpose Governments            
                                                               Large                  
                                                               city-   Other  Special
         CODE - TYPE OF OTHER REVENUE      Federal  State  DC  county  local  district

         U01-Special Assessments..........  N       .     .    .       .       .

         ---Sale of Property:
         U10-Housing and Community
             Development..................  N       N     .    .       N       N
         U11-Other........................  .       .     .    .       .       .

         U20-Interest Earnings............  .       .     .    .       .       .
         U30-Fines and Forfeits...........  .       .     .    .       N       N

         ---Rents and Royalties:
         U40-Rents........................  N       .     .    .       .       N
         U41-Royalties....................  N       .     N    N       N       N

         U50-Private Donations............  N       .     N    N       N       N
         U95-Net Lottery Revenue..........  N       .     .    N       N       N
         U99-Miscellaneous General
             Revenue, NEC.................  .       .     .    .       .       .


         * Shows whether data are collected () or not collected (N) for that type.

         ----------------------------------------------------------------------------- 
                  DESCRIPTIONS OF LIQUOR STORE AND UTILITY REVENUE CATEGORIES
         -----------------------------------------------------------------------------
         
         Amounts derived from sale of liquor or utility commodities and services to
         the public or other governments.

         CODE: A90               ITEM: Liquor Store Revenue

         Includes: Gross receipts (less discounts and any sales taxes included
                   in receipts) from sale of alcoholic beverages and related
                   operations revenue of publicly-owned and operated liquor
                   stores, ABC stores, and their variously-named equivalents.

         Excludes: Sales and license taxes on alcoholic beverages collected through
                   these stores (report at Alcoholic Beverage Sales Tax, code T10,
                   or at Alcoholic Beverage License Tax, code T20); contributions
                   from parent government (nonrevenues); receipt of state liquor
                   store profits distributed to local governments (if unrestricted
                   in use, report at General Local Government Support from State
                   Government, code C30).

         CATEGORY: Utility Revenue

         Gross receipts from sale of utility commodities or services to the public
         or other governments by publicly-owned and controlled utilities.

         Includes receipts from direct sales of commodities and services; rentals
         from operating property; customers' forfeitures and penalties; and charges
         for installing and servicing connections and meters.

         Excludes identifiable amounts for commodities or services furnished to
         the parent government, its agencies, or other utilities of the same
         government (intragovernmental transfers); revenue from investments or
         other capital transactions (report Interest Earnings at code U20 and
         recorded profits on their sale at Miscellaneous General Revenue, NEC,
         code U99); and lease rentals or other earnings from nonoperating utility
         property (use code U40).

         Also excludes special assessments for utility improvements, including
         water impact fees (report at Special Assessments, code U01); contributions
         from parent government (another intragovernmental transfer); financial aid
         from other governments not representing sale of utility good or services
         (report at appropriate Intergovernmental Revenue code); taxes imposed on
         sale of utility commodities and services (report at Public Utilities Tax,
         code T15); and contributions from utility employees for retirement system
         administered by same government (report at Employee Contributions, code
         X01 or X02).

         Effective with fiscal year 1988 data, intergovernmental revenue codes were
         added to the Classification Manual as a service to users who wanted to
         track better the fiscal activities of utilities.  These codes represent
         items already classed at Intergovernmental Revenue codes (e.g., B47
         and B89).  Despite their utility suffixes, however, these codes continue
         to be classified as general revenues and are described under the
         Intergovernmental Revenue section of this chapter.

             CODE: A91               ITEM: Water Supply           

             Includes: Revenue from operations of public water supply systems,
                       such as sale of water to residential, industrial, and
                       commercial customers (including bulk water for resale by
                       other private or public water utilities); connection and
                       "tap" fees; sprinkler fees; meter inspection fees; late
                       payment penalties; and other operations revenues.

             Excludes: Water impact fees, contributions-in-aid-of-construction,
                       and other special assessments (use code U01); sale of water
                       to parent government or its agencies, including fire
                       hydrants (nonrevenues); and rent or other income from
                       nonoperating property (use code U40).

                Notes: For combined water-sewer systems include here segregable
                       amounts related to water supply and report sewer portion
                       at Sewerage Charges, code A80.

             CODE: A92               ITEM: Electric Power         

             Includes: Revenue from operations of public electric power supply
                       systems, such as sale of electricity to residential,
                       commercial, and industrial customers (including electricity
                       for resale by other private or public electric utilities);
                       and other operations revenues.

             Excludes: Sale of electricity to parent government or its agencies,
                       including street lights and traffic signals (nonrevenues);
                       rent or other income from nonoperating property (use code
                       U40); and sale of electricity produced as a by-product by
                       resource recovery facilities (report at Solid Waste
                       Management Charges, code A81).

                Notes: Contributions from other governmental electric utilities
                       for construction of joint utility projects or for debt
                       service on them may be classified as either Intergovernmental
                       Revenue or Utility Revenue depending on the nature of the
                       contributions.  If they are treated as part of the utility's
                       basic rate structure, then report them as a utility revenue,
                       code A92.  Otherwise, report them as Intergovernmental
                       Revenue, codes B92, C92, or D92.

             CODE: A93               ITEM: Gas Supply    

             Includes: Revenue from operations of public gas supply systems, such
                       as sale of natural gas to residential, commercial, and
                       industrial customers (including natural gas for resale by
                       other private or public gas supply utilities); connection
                       fees; and other operations revenues.

             Excludes: Sale of natural gas to parent government or its agencies
                       (nonrevenues); rent or other income from nonoperating
                       property (use code U40); and sale of natural gas produced
                       as a by-product by resource recovery facilities (use code
                       A81).

             CODE: A94               ITEM: Public Mass Transit Systems          

             Includes: Revenue from operations of public mass transportation
                       systems (rapid transit, subway, bus, street railway, and
                       commuter rail services), such as fares, charter fees,
                       advertising income, and other operations revenues.

             Excludes: Toll ferries, turnpikes, toll roads and bridges, and other
                       fees on personal highway transportation (report at Toll
                       Highways Charges, A45) and subsidies from other governments
                       to support either operations or capital projects (report at
                       Intergovernmental Revenue, codes B94, C94, or D94).


         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                              General Purpose Governments            
                                                               Large                  
                                                               city-   Other  Special
         CODE - TYPE OF REVENUE            Federal  State  DC  county  local  district

         A90-Liquor Stores................    N       .     N    .       .       N

         ---Utility Revenue:
         A91-Water Supply.................    N       .     .    .       .       .
         A92-Electric Power...............    N       .     .    .       .       .
         A93-Gas Supply...................    N       .     .    .       .       .
         A94-Public Mass Transit Systems..    N       .     .    .       .       .

         * Shows whether data are collected () or not collected (N) for that type.

         ------------------------------------------------------------------------------ 
                       DESCRIPTIONS OF INSURANCE TRUST REVENUE CATEGORIES
         ------------------------------------------------------------------------------
         
         Amounts derived from contributions, assessments, premiums, or payroll "taxes"
         required of employers, employees, and others to finance compulsory or voluntary
         social insurance programs operated by the public sector; and any earnings on
         assets held or invested by such funds.

         Excludes general tax proceeds, donations, and other revenue except that
         enumerated below even if such amounts are levied specifically for insurance
         trust purposes (report at appropriate general revenue code); grants and
         shared taxes for support of insurance trusts other than employee retirement
         systems, whether received directly or through the parent government (report
         at appropriate Intergovernmental Revenue code); borrowing of funds (non-
         revenues); transfers or contributions from parent government which
         administers the social insurance system (either as employer contributions or
         for general financial support); and rentals from real property leased to
         other agencies of the parent government (latter two are intragovernmental
         transfers).

         Also excludes interest earnings on Federal securities held by the three
         Federal-only insurance trusts enumerated below since these are intragovern-
         mental transfers.  In the case of state and local government insurance trusts,
         however, interest earnings on their own or other governments' securities held
         for investment are included because of the difficulty in identifying such
         transactions.

         Some of the contributions allocated to these categories generally are viewed
         as taxes (e.g., unemployment compensation payroll taxes, Social Security
         taxes); for Census Bureau purposes, however, these are treated as insurance
         trust revenues, not tax revenues.

         Moreover, not all revenues received by an insurance trust fund are classified
         as insurance trust revenues for Census Bureau purposes.  Such receipts as
         grants-in-aid, charges for miscellaneous services, fines and penalties, and
         other miscellaneous revenues are treated as general revenues.

         Insurance trusts are unique in having two sets of revenue codes for class-
         ification purposes.  The first set, described below, pertains to revenues that
         are included when reporting the overall finances of a government (e.g., to
         derive total revenue).  The second set of codes is for exhibit purposes only;
         items which are not included with revenues in the regular finances (e.g.,
         transfers or contributions from parent government) are reported under these
         exhibit codes for display in special tables or reports.

         Chapter 11 provides a separate discussion of insurance trust systems, including
         a formal definition of a social insurance trust and the various exhibit codes
         for these activities.

         CATEGORY: Federal-Only Insurance Trust Systems

         Contributions for social insurance programs administered solely by the Federal
         Government.  At present, only three such systems have been classified, which
         are described in more detail in Chapter 11.

         Excludes earnings on investments since the assets of these trust funds are
         invested solely in Federal securities (thereby making them intragovernmental
         transfers).



















































             CODE: Y20               ITEM: Social Security and Medicare

             Includes: Contributions (employee, employer, and self-employed payroll
                       taxes) to provide for benefits under the Federal Old-Age,
                       Survivors, and Health and Disability Insurance Programs,
                       commonly referred to as Social Security and Medicare.

             CODE: Y31               ITEM: Veterans' Life Insurance

             Includes: Insurance premiums from veterans for purchase of annuities in
                       life insurance programs administered by the U.S. Department of
                       Veterans Affairs (formerly, U.S. Veterans Administration).

             Excludes: Appropriations from general and special revenue funds (intra-
                       governmental transfers).

             CODE: Y41               ITEM: Railroad Retirement 

             Includes: Contributions (employee and employer) to provide for benefits
                       under the Federal Railroad Retirement and Disability system.

             Excludes: Contributions from Social Security trusts, tax subsidies, and
                       any other Federal receipts representing interfund transfers; and
                       contributions for Federal railroad unemployment compensation
                       (use code Y01).

         CATEGORY: Public Employee Retirement Systems

         Contributions from employees and other governments (as employers or as
         grants-in-aid and shared taxes); and interest earnings on investments of
         retirement systems administered by governments for public employees.

         These data are collected by a separate mail canvass survey of state and local
         government-administered public employee retirement systems.

         See Chapter 11 for a discussion of exhibit codes for employee retirement systems.
         
             SUB-CATEGORY: Employee Contributions

             Amounts contributed or withheld from salaries and wages of employees and
             voluntary employee contributions to provide for retirement or survivors'
             benefits.  Includes reimbursements for disability payments, interest on
             employee loans, and interest on buyback contributions.

             Also includes contributions from general employees as well as those of
             public colleges and other institutions or dependent agencies.

                 CODE: X01               ITEM: From Local Government Employees

                 CODE: X02               ITEM: From State Government Employees
                           
                 CODE: X03               ITEM: From Federal Government Employees

             CODE: X05               ITEM: Contributions from Other Governments

             Includes: For local governments, amounts received either from the state or
                       from other local governments as employer contributions for their
                       own employees.  Contributions from state governments to local
                       retirement systems includes not only employer contributions
                       but also state aid (e.g., contributions on behalf of local
                       teachers) and shared taxes (e.g., portion of taxes imposed on
                       insurance companies), even if such amounts are received through
                       the parent government.  For state governments, includes amounts
                       received from local governments as employer contributions for
                       their own employees.

             Excludes: Contributions from parent government which administers the
                       employee retirement system, including its share as an employer
                       (use exhibit code X04 or X06--see Chapter 11 for details) and
                       repayment of loans made to members (nonrevenue).

             CODE: X08               ITEM: Earnings on Investments
                                                                                  
             Includes: Interest earnings on investment securities, deposits, and
                       other interest-bearing accounts, including accrued interest
                       on investment securities sold; dividends; recorded profits
                       on investment transactions (minus any recorded losses);
                       rentals; and other earnings on investments.

             Excludes: Rental of property owned by a retirement system and leased
                       to its parent government; unrealized gains; and amortization
                       of discounts (nonrevenues).

                Notes: Also report losses on investments at exhibit code X14.
                       Previous manuals separated earnings on investments between
                       interest income (code X08) and other types of investment
                       earnings (X09).  However, in practice this distinction was
                       not made on the survey schedules themselves.  Consequently,
                       these two codes were consolidated effective with fiscal year
                       1990 data.

         CATEGORY: Unemployment Compensation Systems

         Contributions from employees and governments (as employers) and interest
         earnings on deposits in U.S. Treasury for the cooperative Federal-state
         unemployment compensation insurance system and for Federal railroad unemploy-
         ment compensation.  This category applies only to the Federal Government,
         state governments, and the District of Columbia.  (For a description of how
         this system operates, see Section 11.32.)

         Note that these data are obtained largely from the Employment and Training
         Administration of the U.S. Department of Labor.

             CODE: Y01               ITEM: Contributions
         
             Includes: Payroll levies (or "taxes") collected from private and public
                       employers (and in some cases employees) to provide for unemploy-
                       ment compensation benefits.

             Excludes: Borrowing of funds (nonrevenues) and contributions (including
                       special payroll levies) to pay debt service on loans issued to
                       cover fund deficits (report at Miscellaneous General Revenue,
                       NEC, code U99).























             CODE: Y02               ITEM: Interest Credited by U.S. Government

             Includes: Interests earned on deposits held in the Unemployment Trust Fund
                       of the U.S. Treasury and credited to individual state governments
                       and to the District of Columbia.

             CODE: Y04               ITEM: Federal Advances and Contributions

             Includes: Net amounts credited to the accounts of the individual state
                       governments and District of Columbia during periods where
                       contributions and interest are insufficient to pay benefits due.
                       Report repayment of advances as deductions to this code, not as
                       unemployment compensation expenditures.

         CATEGORY: Workers' Compensation Systems

         Contributions and interest earnings of state government-operated insurance
         trust funds to provide accident, disability, and death benefits for private
         and public employees.  This category applies solely to state governments.

         These data are collected largely by a separate mail canvass survey of state
         workers' compensation systems.

         See Chapter 11 for a discussion of exhibit codes for workers' compensation
         systems.

             CODE: Y11               ITEM: Contributions

             Includes: Premiums, assessments, payroll "taxes" or other contributions
                       collected from employers and employees to provide for workers'
                       compensation benefits, including contributions from local
                       governments as employers on behalf of their own employees.
                       Also includes amounts received from employees of either state
                       or local governments.

             Excludes: Contributions from state government administering insurance
                       trust system (use code Y10--see Chapter 11 for details);
                       dividends or return of excess premiums (report as a deduction
                       from revenues); penalties and fines (use code U30); charges
                       for such services as copying documents (report at All Other
                       General Charges, code A89); recovery of benefits and other
                       miscellaneous revenues (use code U99); and Federal grants
                       (report at appropriate Intergovernmental Revenue from the
                       Federal Government code).

             CODE: Y12               ITEM: Earnings on Investments

             Includes: Interest earnings on investment securities, deposits, and
                       other interest-bearing accounts, including accrued interest
                       on investment securities sold; dividends; recorded profits on
                       investment transactions (minus any recorded losses); rentals;
                       and other earnings on investments.

                Notes: Also report losses on investments at exhibit code Y15.
                       Previous manuals separated earnings on investments between
                       interest income (code Y12) and other types of investment
                       earnings (Y13).  However, in practice this distinction was
                       not made on the survey schedules themselves.  Consequently,
                       these two codes were consolidated effective with fiscal year
                       1990 data.

         CATEGORY: Other State Government Insurance Trust Systems

         Contributions and earnings on investments for state-administered social
         insurance systems for sickness benefits, disability benefits, and other
         purposes.  At present, only six such insurance trusts have been identified.
         This category applies solely to state governments.

         These data are collected largely by a separate mail canvass survey of state
         miscellaneous insurance trust systems.

         See Chapter 11 for a discussion of exhibit codes for miscellaneous state
         insurance trust systems.

             CODE: Y51               ITEM: Contributions

             Includes: Premiums, assessments, or contributions collected from members
                       to provide for benefits, including contributions from local
                       governments as employers on behalf of their own employees.
                       Also includes amounts received from employees of either state
                       or local governments.

             Excludes: Contributions from state government administering insurance
                       trust system (use code Y50--see Chapter 11 for details).

             CODE: Y52               ITEM: Earnings on Investments

             Includes: Interest earnings on investment securities, deposits, and
                       other interest-bearing accounts, including accrued interest
                       on investment securities sold; dividends; recorded profits on
                       investment transactions (minus any recorded losses); rentals;
                       and other earnings on investments.

                Notes: Also report losses on investments at exhibit code Y54.
                       Previous manuals separated earnings on investments between
                       interest income (code Y52) and other types of investment
                       earnings (Y55).  However, in practice this distinction was
                       not made on the survey schedules themselves.  Consequently,
                       these two codes were consolidated effective with fiscal year
                       1990 data.




































         ----------- DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                            General Purpose Governments            
                                                             Large                  
                                                             city-   Other  Special
         CODE - TYPE OF REVENUE          Federal  State  DC  county  local  district

         ---Federal-Only Insurance Trusts:
         Y20-Social Security and
               Medicare...................  .       N     N    N       N       N
         Y31-Veterans' Life Insurance.....  .       N     N    N       N       N
         Y41-Railroad Retirement Fund.....  .       N     N    N       N       N

         ---Public Employee Retirement:
            -Contributions:
         XO1-From local employees.........  N       .     .    .       .       .
         X02-From state employees.........  N       .     N    N       N       N
         X03-From Federal employees.......  .       N     N    N       N       N
         X05-From other governments.......  N       .     .    .       .       .

         X08-Earnings on investments......  N       .     .    .       .       .

         ---Unemployment Compensation:
         Y01-Contributions................  .       .     .    N       N       N
         Y02-Interest credited by
               U.S. Government............  N       .     .    N       N       N
         Y04-Federal advances and
               contributions..............  N       .     .    N       N       N

         ---Workers' Compensation:
         Y11-Contributions................  N       .     N    N       N       N
         Y12-Earnings on investments......  N       .     N    N       N       N

         ---Other State Insurance Trusts:
         Y51-Contributions................  N       .     N    N       N       N
         Y52-Earnings on investments......  N       .     N    N       N       N

         * Shows whether data are collected () or not collected (N) for that type.

                            CHAPTER 8.  EXPENDITURE 


       Contents and Abstract: 

       8.1 Expenditure Definition 
        8.11 Refunds and Correcting Transactions

       8.2 General Expenditure 

       8.3 Liquor Store Expenditure 

       8.4 Utility Expenditure 
        8.41 Intergovernmental Expenditure Codes for Utilities 
        8.42 Joint Utility Projects (Public and Private) 

       8.5 Insurance Trust Expenditure 

       8.6 Character and Object Categories 
        8.61 Construction Data Improvement 
        
       Table: 

        8-1 Cross-Classification of Expenditure and Function Codes 

       Chart: 
        
        8-A Description of Character and Object Categories


       In providing a wide range of services to the public, a government
       may perform in different ways.  Take, for instance, public
       welfare services, which may be provided directly with the
       government's own employees, be funded through intergovernmental
       expenditures, or constitute direct cash payments to welfare
       recipients. 

       The Census Bureau's classification system for government finances
       attempts to measure not only the types and levels of government
       services but also how they are performed.  This is achieved
       through statistics on government expenditure that are reported on
       the basis of purpose (or function) and on the nature of the
       expenditure involved (or character and object). 

       Chapter 4 provides a detailed description of the various
       functional categories the Bureau uses for reporting expenditure
       statistics.  This chapter focuses on the definition of expendi-
       ture, its various types, and descriptions of the character and
       object categories.


       8.1 Expenditure Definition


       Expenditure includes all amounts of money paid out by a
       government during its fiscal year--net of recoveries and other
       correcting transactions--other than for retirement of debt,
       purchase of investment securities, extension of loans, and agency
       or private trust transactions.  Under this definition,
       expenditure relates to external payments of a government and
       excludes amounts transferred to funds or agencies of the same
       government (other than payments to intragovernmental service
       funds; see Section 6.62). 

       Expenditure includes payments from all sources of funds,
       including not only current revenues but also proceeds from
       borrowing and prior year fund balances.  Note, however, that the
       Bureau's finance statistics do not relate expenditure to their
       source of funding.

       Expenditure includes amounts spent by all agencies, boards,
       commissions, or other organizations categorized as dependent on
       the government concerned (see Chapter 3).  Stated in terms of the
       accounting procedures from which these data originate, expend-
       iture covers outlays of all accounting funds of a government
       other than intragovernmental service (revolving), agency, and
       private trust funds. 

       Expenditure of business-type activities of governments (utilities
       and other commercial or auxiliary enterprises) is reported on a
       gross basis.  That is, related revenues are not deducted from
       their expenditures to derive net expenditure amounts. 

       The following types of outlays are excluded from expenditure: 

         o Loans or other extensions of credit, except contingent loans
           and advances to other governments which are reported as
           intergovernmental expenditure (see Section 6.41). 

         o Refunds of revenues collected during the same fiscal year,
           which are deducted from gross receipts of revenue item
           involved (see Section 6.54). 

         o Erroneous payments and other outlays that are recovered
           during the same fiscal year, which are deducted from the
           expenditures that originally included them (see Section
           6.54). 

         o Purchase of securities for investment purposes.  Recorded
           loss on the sale of investments, however, is treated as an
           expenditure. 

         o Payments for the retirement of debt principal (long- or
           short-term), which are reported with debt statistics (see
           Chapter 9).  Interest on debt, however, is reported as an
           expenditure. 

         o Transfers to other agencies or funds of the same government,
           except for intragovernmental service funds and utilities
           operated by the same government (see Sections 6.6 and 8.4). 

         o Agency or private trust transactions, i.e., where the
           government is acting on behalf of others (see Section 6.5). 

         o Noncash transactions, such as provision of perquisites,
           technical services, commodities, property, noncash gifts or
           bequests, and other "payments in kind." The cost of items
           distributed in-kind are treated as purchase of goods and
           services (i.e., as a current operations expenditure). 

       Government expenditures are categorized according to their
       functional purpose and by character and object.  The census codes
       resulting from this cross-classification are listed in Table 8-1.
       All expenditure falls into one of the four sectors of government
       described in Chapter 3.  Note that how an expenditure is financed
       does not determine necessarily its expenditure classification--
       e.g., administration of an insurance trust system from insurance
       trust revenue is treated as a general government expenditure. 


       8.11 Refunds and Correcting Transactions 


       Expenditure data are adjusted for refunds and other correcting
       transactions, including those originally made in prior fiscal
       years.  See Section 6.54 for details. 


       8.2 General Expenditure 


       General expenditure comprises all expenditure except that
       classified as liquor store, utility, or insurance trust
       expenditure.  As noted above, it includes all such payments
       regardless of the source of revenue from which they were
       financed.  General government expenditures are classified by
       function and character and object. 


       8.3 Liquor Store Expenditure 


       Liquor store expenditure comprises only outlays related to the
       establishment and operation of liquor stores owned and operated
       by state and local governments, including amounts for purchase of
       liquor for resale.  It excludes expenditures for enforcement and
       licensing under liquor laws, even if financed by liquor store
       sales (reported as general expenditure); transfer of surplus or
       earnings of the liquor store system to the parent government (an
       intragovernmental transfer); and state liquor store earnings that
       are distributed to local governments (reported as General Local
       Government Support expenditure, code 30). 


       8.4 Utility Expenditure 


       Utility expenditure comprises outlays for the purchase or
       construction of utility facilities, interest on utility debt
       (including utility debt held by other funds of the same
       government), and production or acquisition and distribution of
       utility commodities and services for sale to the general public
       or to other governments by the four types of state and local
       government utilities recognized by the Census Bureau: water
       supply, electric power, gas supply, and public mass transit
       systems.  Utility expenditure is reported on a gross amount
       without deducting its related revenue.

       Utility expenditure excludes any identifiable costs for providing
       services or commodities to the parent government, which are
       reported at the function using them.  For example, the cost of
       water used by a fire department is classified as a Fire
       Protection expenditure, code E24. 
        
       The following expenditures are excluded from the utility sector: 

         - Depreciation of assets (instead, capital outlays are reported
           at the time of their payment).

         - Contributions or other intragovernmental transfers by a
           utility to its parent government.  As a practical matter,
           interest on utility debt held for investment purposes by
           other funds of the parent government are included in utility
           interest expenditure. 

         - Expenditures relating to utility facilities owned but leased
           to others for operation (reported as general expenditure),
           except where the government maintains day-to-day financial
           oversight of the utility operation. 

         - Intergovernmental payments (which are always general
           expenditure) for support of or for contributions toward
           construction of utilities operated by other governments (see
           Section 8.41).  Note that purchase of utility services or
           commodities as a regular customer from another government is
           treated as a current operation expenditure of the paying
           function. 

         - Any expenditure not directly related to the utility's
           acquisition, operation, capital improvements, or interest on
           its debt (to the extent this is possible).  This includes,
           for instance, administration of investments and other
           nonoperating expenses, and payments to other governments as
           "in-lieu-of-taxes" or as actual taxes on utility property.
           Generally, these would be classed in the general government
           sector. 

         - Contributions to an insurance trust fund administered by the
           same government (an intragovernmental transfer) or benefit
           payments to former utility employees who are members of a
           government public employee retirement system (reported as an
           insurance trust expenditure).  Contributions to a social
           insurance trust system administered by another government,
           however, would be classified as utility current operation
           expenditure. 

         - Cost of producing electricity or natural gas as a by-product
           of waste resource recovery facilities (reported under Solid
           Waste Management, code 81). 

       Utility expenditure is categorized according to the type of
       utility involved and by character and object.


       8.41 Intergovernmental Expenditure Codes for Utilities 


       Effective with fiscal year 1987-88 data, the Bureau created
       intergovernmental expenditure codes for utility purposes.
       Despite the fact that these categories possess utility function
       codes (L91, M92, R93, etc.), they are classified as general
       government expenditure.  Note that these categories are used to
       record intergovernmental transactions that were being reported
       previously under other intergovernmental expenditure codes
       (primarily General Government, NEC, code 89, and Transit
       Subsidies, code 47). 

       Purchase of utility services or commodities from another
       government continues to be recorded as a current operation
       expenditure of the function benefitted. 


       8.42 Joint Utility Projects (Public and Private) 


       Because of the massive size of utility facilities (especially
       electric power), governments sometimes enter into joint
       construction projects with other private or public utilities.
       Below are two possible situations and their proper classification
       for Census Bureau purposes: 

         - In joint public/private utility projects, capital outlay
           expenditure from bond funds for new plants are classified as
           utility construction expenditure ("F" code) rather than
           purchase of existing structures ("G") code.  That is, it is
           assumed that the government is paying the private firm for
           the construction work unless there is strong evidence
           indicating that the government utility is taking over an
           existing private utility. 

         - In joint public/public utility projects, payments to another
           government either for construction or debt service generally
           is treated as intergovernmental expenditure (using the new
           codes for utilities described in Section 8.41).  However, if
           the receiving government utility treats the contribution as
           part of its basic rate structure (i.e., classified as utility
           revenue, code A9-), then the government's contribution is
           treated as a current operation expenditure. 


       8.5 Insurance Trust Expenditure 


       Insurance trust expenditure consists of social insurance payments
       to beneficiaries, public employee retirement annuities and other
       benefits, and withdrawals of insurance or employee retirement
       contributions.  In effect, it only includes amounts paid to
       beneficiaries or members of the systems. 

       The following are excluded from insurance trust expenditures: 

         - Costs of administering insurance trust programs, including
           management of investments (classified as a general government
           expenditure). 

         - Contributions to a government's own insurance trust funds (an
           intragovernmental transfer). 

         - Contributions or other payments to insurance trust funds
           administered by another government (classified as current
           operation expenditure when such amounts represent employer
           contributions on behalf of the contributing government's
           employees and as agency transaction when such amounts
           represent sums withheld from employee salaries and wages). 

         - "Pay-as-you-go" plans or "gratuities" to former employees--
           i.e., payments not involving a plan of employee assessments
           or accumulation of retirement reserves (classified as current
           operation expenditure). 

         - Group insurance premiums covering the government's own
           employees and contributions to private insurers or to public
           employee association retirement systems (classified as
           current operation expenditure). 

       Insurance trust expenditure is classified according to the major
       types of insurance trust systems recognized by the Census Bureau.


       8.6 Character and Object Categories 


       As noted above, all expenditure amounts are classified by
       function and by character and object.  The character and object
       classification reflects the time period benefitted by the
       expenditure and the kind of payment involved.  It consists of the
       following categories: 

          Code                 Character and Object Category 
       ----------- ----------------------------------------------------- 
       Direct Expenditure Categories: 
        
           E        Current Operations 
         E-I-J      Assistance and Subsidies 
           I        Interest on Debt 
                    Capital Outlay:   
           F           Construction 
           G*          Purchase of Land and Existing Structures 
           K           Purchase of Equipment 
                    Insurance Trust Expenditure: 
           X           Public Employee Retirement Systems 
           Y           All Other Insurance Trust Systems 

       Intergovernmental Expenditure Categories: 

           L        To State Government 
           M        To Local Governments, N.E.C. 
           N        To General Purpose Governments (County, Municipal,
                      or Township) 
           Q        To Independent School Districts 
           R        To Special Districts 
           S        To the Federal Government 

       * The use of the "G" code for purchase of land and existing
         structures applies only during the original compilation of data
         for state and largest city and county governments.  When these
         data are inserted into the Bureau's computerized records, they
         are combined with purchase of equipment data ("K" codes) to
         produce a category called "Capital Outlay Other Than
         Construction." The equipment only category ("K" codes),
         therefore, becomes a subcategory under this one in all
         subsequent computer files, printouts, and publications.  For
         all other governments, the "G" code represents the purchase of
         land, equipment and existing structures--i.e., all capital
         outlays other than construction. 

       As indicated by the above chart, two prefix codes have double
       meanings.  The "E" prefix is used both for assistance and
       subsidies and for current operations . There are, however, just
       four assistance and subsides codes that use the "E" prefix: 

           E19 - Education assistance 
           E67 - Categorical cash assistance 
           E68 - Noncategorical cash assistance 
           E84 - Veterans' bonuses 

       Similarly, the "I" prefix is also used both for assistance and
       subsidies and for interest on debt.  There are, however, just
       five codes for interest on debt: 

           I89 - Interest on general debt 
           I91 - Interest on water supply utility debt 
           I92 - Interest on electric power utility debt 
           I93 - Interest on gas supply utility debt 
           I94 - Interest on public mass transit systems utility debt 

       Note that all the remaining "I" codes relate to assistance and
       subsidies expenditure of the Federal Government.  See Chart 8-A
       for a detailed description of each character and object category. 


       8.61 Construction Data Improvement 


       During the 1987-88 Annual Survey of Government Finances, the
       Bureau undertook a major review of the elements comprising
       construction expenditure data.  The review, in general,
       corroborated the historical integrity of the construction data.
       The review did lead to the clarification of activities classified
       under this category in one important area: centralized
       engineering, design and planning, and contract supervision
       activities whose major purpose is to support public capital
       projects should be classified under construction.  Previously,
       their treatment varied between construction and current
       operations.  This finding primarily affected the Highways
       function. 

       This review also affected the classification manual by
       incorporating more detailed definitions of the items comprising
       the different capital outlay character and object categories.



                           CHAPTER 9.  INDEBTEDNESS 


       Contents and Abstract: 

       9.1 Debt Definition 
        9.11 Liabilities Outside Census Bureau Definition 
        9.12 Major Classification Changes with Fiscal Year 1987-88 Data 

       9.2 Four-Way Classification of Public Debt 
        
       9.3 Public Debt for Private Purposes 
        9.31 Related Revenue, Expenditure, and Cash and Security Issues 

       9.4 Refunding of Long-Term Debt 
        9.41 Regular Refunding 
        9.42 Advance Refunding 

       9.5 Derived Debt Statistics 
        9.51 Borrowing and Redemption 
        9.52 Change in Debt 
        9.53 Net Long-Term Debt Outstanding 

       9.6 Other Debt Topics 
        9.61 Zero Coupon and Other Deep Discount Bonds 
        9.62 Bond Banks and Pooled Debt 
        9.63 Leases and Lease-Purchase Agreements 
        9.64 Taxable Public Debt 

       Chart: 
        
        9-A  Examples of Liabilities Included and Excluded from Census
               Bureau Definition of Public Debt 

       Description Sheets 


       Perhaps more than any other area of public finances, government
       debt has grown increasingly diverse and complex since the Census
       Bureau's classification system was created.  The effect of these
       changes on the classification system has been so pronounced that
       major changes were made to it beginning with the fiscal year
       1987-88 finance survey. 


       9.1 Debt Definition 

        
       Public debt comprises all interest-bearing short-term credit
       obligations and all long-term credit obligations incurred in the
       name of the government and all its dependent agencies, whether
       backed by the government's full faith and credit or nonguar-
       anteed.  It includes tax-exempt as well as taxable public debt. 

       The Census Bureau concept of public debt is an inclusive one,
       covering judgments, mortgages, "revenue" and "earning" bonds, and
       special assessment obligations as well as the more traditional
       general obligation bonds, notes, and interest-bearing short-term
       warrants.  It includes not only public debt for public improve-
       ments (roads, sewers, airports, etc.) but also public debt issued
       for the direct benefit of the private sector (industrial
       development, mortgage revenue, pollution control abatement,
       etc.).  Indeed, the latter category has grown to become the
       largest type of government debt today.  (See Section 9.3 for a
       more detailed discussion of this topic.) 

       This definition covers obligations of all agencies, boards,
       commissions, or other organizations categorized as dependent on
       the government concerned (see Chapter 3).  For instance, govern-
       ment business-type activities, particularly utilities, have debt
       that is payable exclusively from earnings of the facilities which
       the debt financed.  Many special assessment obligations are paid
       completely from levies on the property benefitting from such
       improvements, without recourse to the general credit of the
       government.  State authorities, educational institutions, and
       other agencies frequently have debt secured only by their own
       revenues, other dedicated receipts, or agency properties.  These
       types of obligations are issued widely by dependent agencies of a
       government, such as special improvement districts of city
       corporations, state dormitory authorities, or housing finance
       agencies.  Often, the parent government does not even maintain
       central accounts on such debt.  Nonetheless, all these examples
       are types of credit obligations reported in Census Bureau
       statistics on public debt. 

       The Bureau assigns public debt, as defined above, to the
       government in whose name it is incurred, regardless of the
       location of responsibility for debt service.  In the case of
       public debt for private purposes, this generally represents the
       government whose tax-exempt status was used to issued such debt.
       State obligations for which interest and principal payments are
       financed by local government payments to the state are treated as
       state debt.  Similarly, debt of an agency classified as dependent
       on a local government is treated as local government debt. 


       9.11 Liabilities Outside Census Bureau Definition


       This concept of public debt, however, is not so broad that it
       covers every liability listed on the balance sheets or elsewhere
       in government finance reports.  The following types of liabil-
       ities are excluded from Census Bureau statistics: 

        - Noninterest-bearing short-term obligations, such as accounts
          payable, noninterest-bearing warrants, and the like.  Note,
          however, that noninterest-bearing long-term obligations having
          a formal debt instrument (such as a fixed repayment schedule)
          are classified as government debt. 

        - Interfund advances, loans, or other obligations between
          accounting funds of the same government (see Section 6.6 for a
          discussion of intragovernmental transactions).  As a practical
          matter, these debt statistics do include formal debt
          instruments of a government that are held as investments by
          its own agencies or fund.

        - Amounts held (and owned) by a government in a trust or agency
          capacity on behalf of others (see Section 6.5).

        - Contingent loans and advances from other governments, which
          are classed as intergovernmental transactions (see Section
          6.4).

        - Rights of individuals to benefits from retirement funds or
          other social insurance trust systems. 

        - Unfunded liabilities of retirement systems, unpaid annual or
          sick leave, or other obligations without a formal debt
          instrument specifying terms, length, interest rate, etc. 

        - Leases, including both capital and operating leases (see
          Section 9.63). 

        - Loan guarantees and nonguaranteed obligations of the Federal
          Government. 

       Chart 9-A provides a sample of the most common types of govern-
       ment liabilities that are included and excluded from this
       definition of public debt. 


       9.12 Major Classification Changes with Fiscal Year 1987-88 Data 


       Because of the growing complexity of government debt financing
       and the increasing difficulty in collecting statistics regarding
       it, the Census Bureau instituted major classification changes to
       this area, effective with fiscal year 1987-88 data.  The major
       effects of the changes were to simplify the classification scheme
       and to identify more completely public debt for private purposes. 

       The classification changes can be summarized as follows: 

         - The functional detail on long-term debt issued, retired, and
           outstanding was reduced from 19 to eight categories, half of
           which are for utilities.  The disposition of the previous
           function codes is shown in the chart below: 
        
           Old                                                     New
           Code               Purpose                              Code
           ---- -------------------------------------------------- ----
           Utility Debt1:

            A   Water Supply Systems*                                A
            B   Electric Power Systems*                              B
            C   Natural Gas Supply Systems*                          C
            D   Public Mass Transit Systems*                         D

           General Debt2:

            E   Air Transportation                                   X
            F   Elementary and Secondary Education*                  F
            G   Institutions of Higher Education                     G
            H   Other Education, N.E.C.#                             G
            J   Hospitals#                                           X
            K   Highways-Regular                                     X
            L           -Toll                                        X
            M   Housing and Community Development#                   X
            N   Parks and Recreation                                 X
           Old                                                     New
           Code               Purpose                              Code
           ---- -------------------------------------------------- ----
           General Debt (continued)1:

            P   Sewerage                                             X
            R   Veterans' Bonuses                                    X
            S   Water Transport and Terminals                        X
            T   Industrial Development and Pollution Control         T
            W   Mortgage Revenue                                     T
            X   General Debt, N.E.C.                                 X

            * Indicates no change to category.
            # Indicates that some debt previously classified in this
              code is included in the new Public Debt for Private
              Purposes category.

         - A new category, Public Debt for Private Purposes (code T),
           was created as a combination of industrial development and
           pollution control (old T code) and mortgage revenue (old W
           code) plus debt that was recorded in other functions (e.g.,
           from the education debt categories, debt for student
           education loans and from hospital debt category, debt to
           finance private hospital construction). 

         - Two functional categories that had been used previously to
           classify state government full-faith and credit long-term
           debt, General Obligation Bonds and Debt Initially Payable
           from Specified Nontax Revenue, were eliminated. 


       9.2 Four-Way Classification of Public Debt 


       For Census Bureau statistics, public debt is classified into four
       categories using a 3-digit coding scheme.  Except for the first
       category, all apply solely to long-term debt.  These categories
       are defined in detail in the description sheets at the end of
       this chapter.  Below is a summary of each: 

         - By length of term.  Debt is classified as being either
           short-term or long-term.  Note that for short-term debt, only
           the amounts outstanding at the beginning and end of the
           fiscal year are reported.  Unlike long-term debt data, no
           effort is made to collect the entire amount of short-term
           debt sold and paid off during the fiscal year or to
           categorize short-term debt by function. 

         - By type of long-term debt.  Long-term debt is classified by
           one of three types: issued during the year, retired during
           the year, or outstanding at the end of the government's
           fiscal year.  Note that the first two record debt activity
           over a period of time while the last one measures debt at a
           specific point.  Also, the end of fiscal year refers to the
           government's own fiscal year, not the Census Bureau reporting
           period. 

         - By character of long-term debt.  Long-term debt is classified
           as either backed by the full-faith and credit of the govern-
           ment or as nonguaranteed.  For smaller local governments,
           long-term debt issued and retired is not classed in either
           category but is categorized as "unspecified in character." 

         - By purpose of long-term debt.  Long-term debt is classified
           according to the purpose, or function, intended to be
           financed from its proceeds.  There are currently eight
           functional categories for debt: 

           - Utility Debt1: Water Supply Systems 
                            Electric Power Systems 
                            Natural Gas Supply Systems 
                            Public Mass Transit Systems 
        
           - General Debt:  Elementary and Secondary Education 
                            Higher and Other Education 
                            Public Debt for Private Purposes 
                            All Other Debt, N.E.C.2 

          See Chapter Four for detailed definitions of these functional
          categories (except Public Debt for Private Purposes, which is
          not a function per se). 


       9.3 Public Debt for Private Purposes 


       This functional debt category, first used in the fiscal year
       1987-88 survey, represents a consolidation of two former
       categories plus certain debt from others.  It is now the largest
       type of state and local government debt. 

       Public debt for private purposes comprises credit obligations of
       a government or any of its dependent agencies for the purpose of
       funding private sector activities3, including debt that is backed
       solely by the private organization(s) involved.  Such debt is
       assigned to the government whose bond-issuing authority was used
       to secure its tax-exempt status or, in the case of taxable debt,
       was used for its issuance.  Examples of private sector activities
       funded include industrial and commercial development, pollution
       control, housing and mortgage loans, private hospital facilities,
       student loans, and such private ventures as sports stadiums,
       convention centers, and shopping malls. 

       This type of debt poses certain data collection problems for the
       Bureau.  First, it is not listed always in the financial
       statements of the government issuing it.  Often, the debt is
       discovered in secondary sources, such as Moodys.  Second, even if
       its issuance is identifiable, its retirement schedule, interest
       payments, and amount outstanding may be unavailable, requiring
       the Bureau to estimate them.  Third, the governments' themselves
       often do not construe such debt to be their own and object to its
       being included in Census Bureau statistics about their finances.
       Finally, this debt can distort the presentation of data, such as
       its effect on per capita debt when a small government (in
       population) issues a large amount of public debt for private
       purposes. 




































































       9.31 Related Revenue, Expenditure, and Cash and Security Issues 


       Public debt for private purpose also generates special treatment
       regarding its related revenue, expenditure, and even cash and
       security holdings.  This treatment was revised for the fiscal
       year 1987-88 survey to cover all types of debt like this;
       previously, it was limited to mortgage revenue debt (the old "W"
       code debt). 

         - Revenue: Classified as Interest Earnings (code U20) is an
           amount equal to the interest expenditure (code I89) on all
           public debt for private purposes. 

         - Expenditure: Unlike all other forms of debt issued, no
           expenditures from the proceeds of public debt for private
           purposes are reported.  Classified as Interest on General
           Debt (code I89) are the actual (or estimated) interest
           payments on such debt. 

         - Cash and Security Holdings: Classified as an Offset to Debt
           (code W01) is an amount equal to the public debt for private
           purposes outstanding at the end of the fiscal year.  This
           figure is revised annually to account for amounts retired or
           issued. 


       9.4 Refunding of Long-Term Debt 


       Another growing (in volume and complexity) feature of public debt
       finances is the refunding of long-term debt.  Governments often
       retire debt before it matures by issuing more debt--generally at
       a lower interest rate (like refinancing a mortgage).  A more
       peculiar version is advance refunding where a government issues
       new debt but sets aside the proceeds rather than actually paying
       off the old debt.  The old debt, in turn, is "defeased" and
       removed from the government's accounting statement.  How such
       activities are reported in Census Bureau statistics is described
       in the next two sections. 


       9.41 Regular Refunding 


       Regular (or direct) refunding refers to the issuance of long-term
       obligations in exchange for, or to finance the retirement of,
       existing long-term debt, typically on or after the first call
       date of the debt to be refunded.  This rather straightforward
       transaction is classified for Census Bureau statistics as
       described below: 

         - Refunding debt issued: The par value of debt issued during
           the fiscal year is reported twice: (1) under regular debt
           issue categories (codes 21*, 24*, or 29*) and (2) under the
           refunding debt issued category (code 52T), an exhibit code.
           Note that the "T" in code 52T does not refer to public debt
           for private purposes.  Any amounts authorized but not
           actually issued are excluded. 

         - Debt retired by refunding: The par value of debt retired by
           refunding during the fiscal year is reported twice: (1) under
           regular debt retired categories (codes 31*, 34*, or 39*) and
           (2) under the debt retired by refunding category (code 53T),
           an exhibit code.  Note that the "T" in code 53T does not
           refer to public debt for private purposes. 

         - Refunding debt outstanding: The par value of debt outstanding
           that was issued for refunding purposes is reported under
           regular debt outstanding categories (codes 41* or 44*).  The
           debt that has been retired by the refunding bonds is
           excluded. 

       Note: The asterisk (*) refers to the debt function code which is
       based on the function of the debt being refunded. 


       9.42 Advance Refunding 


       A much more complex situation is when a government issues
       refunding debt but cannot legally retire the old debt under the
       terms of the original debt issuance (typically, 10 years after
       its issuance).  That is, the original debt's "first call" date
       has not yet been reached.  Usually, this occurs during times when
       interest rates are falling dramatically.  In these cases, the
       government places the proceeds of the refunding bonds in escrow,
       which includes enough monies to cover the debt service (principal
       and interest) until the original debt's first call date is
       reached, when the escrowed funds are used to retire the original
       debt's remaining balance. 

       The government generally has two choices on treating the refunded
       debt: One, if the refunding debt issued is sufficient to pay the
       remaining principal and all future interest on the original debt,
       then the government can remove the original debt from its balance
       sheet, an action called defeasance.  For Census Bureau purposes,
       a debt is defeased whether or not the government is released from
       its legal obligation for the debt (legal defeasance) or remains
       the primary obligor (in-substance defeasance). 

       Two, the government may use the escrow funds to pay the interest
       and principle due on the refunding debt, not the original debt,
       until a certain date is reached, at which time the escrowed money
       is used to retire the original debt, which is then defeased.
       This type of advance refunding is called "crossover" refunding. 

       The example below illustrates a typical advance refunding: 

          City X has $10 million in water utility nonguaranteed debt
          outstanding at 13% interest whose first call date is not for
          four more years.  It issues $12 million in advance refunding
          bonds (at 6%) to cover principal and interest to maturity.
          The proceeds are used to purchase Federal securities which are
          placed in escrow and used for debt service on the original
          issue.  The original debt is "defeased" and removed from the
          books of the government.  Assume that there is no other
          principal paid on either the original or advance refunding
          debt. 

       For Census Bureau statistics, this advance refunding scenario
       would be treated in the following manner: 

         - Advance refunding debt issued: The par value of the entire
           refunding debt issue (i.e., the $12 million cited in the
           example) is reported under regular debt issued categories
           (codes 21*, 24*, or 29*). 

           The par value of the refunding debt issue used to refund the
           old debt principal (i.e., the $10 million in the example) is
           reported under the exhibit code, Refunding Debt Issued (code
           52T).  The portion to be used for interest is not included in
           code 52T. 

         - Debt retired by advance refunding: The treatment of the
           original debt's retirement and its outstanding amount depends
           on when the government no longer considers the debt to be on
           its books, regardless of whether or not the debt still exists
           (i.e., is still in possession of its bond holders).  Once the
           government considers the original debt defeased and removes
           it from its official accounting records4, the par value of
           the original debt issue is reported twice: (1) under regular
           debt retired categories (codes 31*, 34*, or 39*) and (2)
           under the exhibit code, Debt Retired by Refunding (code 53T).
           In the above example, once the original debt was defeased in
           the second fiscal year, the $10 million would be coded both
           24A and 53T.  The retirement of the refunding debt itself is
           treated the same as any other debt retirement. 

         - Advance refunding debt outstanding: The refunding debt itself
           is reported in the same manner as any other long-term debt
           outstanding.  The treatment of the original debt to be
           refunded in advance depends on whether or not it is still on
           the government's books: 

            o If the original debt is still shown on the government's
              official accounting records4, then it is reported as debt
              outstanding (along with the advance refunding debt
              outstanding).  This is not uncommon for the first year the
              advance refunding debt is issued or in cases of crossover
              advance refunding.  Citing the example above, this would
              be a total of $22 million in debt outstanding. 

            o If the original debt has been defeased and is no longer
              shown in the government's official accounting records4,
              then it is not reported as debt outstanding.  In the above
              example, debt outstanding would be limited to the $12
              million in advance refunding debt. 
               
       This treatment was adopted first with fiscal year 1978-79 data.
       The Bureau made a one-time adjustment of about $5.6 billion to
       state and local government long-term debt outstanding for that
       year to accomplish this revision. 


       9.5 Derived Debt Statistics 


       From the debt data that is collected from state and local
       governments, the Census Bureau also computes derived statistics
       on indebtedness.  Some of these also use data gathered on cash
       and security holdings.  Note that there are no census codes
       associated with these types of statistics. 


       9.51 Borrowing and Redemption 


       Borrowing is an estimate of the net amount of new money that a
       government has borrowed during the fiscal year, including short-
       and long-term debt.  It consists of the par value of long-term
       debt issued during the year (other than for refunding purposes)
       plus any net increase in short-term debt between the beginning
       and end of the fiscal year.  Note that it does not reflect the
       total amount of short-term debt sold during the year. 

       Shown as a formula using Census Bureau 3-digit debt codes,
       borrowing is computed as follows (the asterisk (*) in the
       formulas below stands for the appropriate function code for the
       debt issued or retired): 

          If net short-term debt has increased during the fiscal year: 
        
                   21* + 24* + 29* + (64V - 61V) - 52T 

          If net short-term debt has decreased (or remained constant)
          during the fiscal year: 
        
                   21* + 24* + 29* - 52T 
        
       Redemption is an estimate of the net amount of debt that a
       government has paid off during the fiscal year, including short-
       and long-term debt.  It consists of the par value of long-term
       debt retired during the year (other than debt retired by
       refunding) minus any net decrease in short-term debt between the
       beginning and end of the fiscal year.  Note that it does not
       reflect the total amount of short-term debt paid off during the
       year. 

       Shown as a formula using Census Bureau 3-digit debt codes,
       redemption is computed as follows: 

          If net short-term debt has increased during the fiscal year: 
        
                   31* + 34* + 39* - 53T 

          If net short-term debt has decreased (or remained constant)
          during the fiscal year: 
        
                   31* + 34* + 39* + (64V - 61V) - 53T 
        
       Note that debt redemption includes debt redeemed not only from
       current revenue or prior year fund balances but also from the
       sale of assets accumulated in debt service funds (sinking funds).
       The transfer of current revenue to such funds for future debt
       service is considered an intragovernmental transaction and,
       therefore, is not included in either revenue or expenditure
       statistics.  (The amounts held, however, are recorded as cash and
       securities; see Chapter 10 for details.) 


       9.52 Change in Debt 


       Combining features of both debt borrowing and redemption, change
       in debt is an estimate of the net change in a government's
       indebtedness during the fiscal year.  It consists of the par
       value of long-term debt issued during the fiscal year less the
       par value of long-term debt retired during the year plus (or
       minus) the change in short-term debt between the beginning and
       end of the fiscal year.  Note that it does not reflect the total
       amount of short-term debt sold or paid off during the year. 

       Shown as a formula using Census Bureau 3-digit debt codes, change
       in debt is computed as follows: 
 
                   21* + 24* + 29* - 31* - 34* - 39* + (64V - 61V) 


       9.53 Net Long-Term Debt Outstanding 


       Net long-term debt outstanding is the amount of long-term debt
       held by a government for which no funds have been set aside for
       its repayment.  It consists of total long-term debt outstanding
       less total offsets to debt (i.e. cash and security holdings in
       debt service, or sinking, funds).  Shown as a formula using
       Census Bureau 3-digit debt codes, net long-term debt outstanding
       is computed as follows: 

                   41* + 44* - W01 

       For state governments and the largest city and county governments
       whose data are compiled specially by the Bureau, net long-term
       debt is divided further between full-faith and credit and
       nonguaranteed. 

           Net Long-Term Full-Faith and Credit Debt consists of the par
           value of total full-faith and credit long-term debt less
           offsets to full-faith and credit long-term debt.  Shown as a
           formula using Census Bureau 3-digit debt codes, it is
           computed as follows: 
        
                   41* - 71W 

           Net Long-Term Nonguaranteed Debt consists of the par value of
           total nonguaranteed long-term debt less offsets to nonguaran-
           teed long-term debt.  Shown as a formula using Census Bureau
           3-digit debt codes, it is computed as follows: 
        
                   44* - 74W 
 
       See Chapter Ten for a description of offsets to full-faith and
       credit and to nonguaranteed debt (codes 71W and 74W). 














































       9.6 Other Debt Topics 


       This section covers topics not discussed elsewhere, primarily new
       and more complex debt instruments that governments have employed
       in recent years. 


       9.61 Zero Coupon and Other Deep Discount Bonds 


       Deep discount bonds and their equivalents (zero-coupon bonds,
       compound interest bonds, etc.) are debt instruments sold at a
       price much below their face value.  The interest they earn is
       added to the value of the bond rather than paid out serially
       (similar to how U. S. savings bonds work).  Stated formally,
       interest is reinvested, compounded at the original rate that
       applied to principal, and paid at maturity. 

       For Census Bureau statistics, deep discount debt transactions are
       reported as follows: 

           Debt issued: Only the actual proceeds from the sale of the
           bonds are reported as long-term debt issued (i.e., not the
           higher face value amount). 

           Debt retired: When the bonds are finally paid off, only the
           original sale price is reported as long-term debt retired
           (i.e., not the higher face value which includes accumulated
           interest).  Thus, the amount retired is equal to the amount
           originally reported as issued. 

           Debt outstanding: The amount of proceeds from the original
           sale of the bonds is reported as long-term debt outstanding
           (i.e., the outstanding amount is not incremented by the
           interest earned and added to its face value).  Thus, the
           amount outstanding remains constant during the life of the
           bond. 

           Interest expenditure: The amount of interest earned by the
           bond and added to its face value is reported as interest
           expenditure (even if it does not involve actual cash
           disbursements). 


       9.62 Bond Banks and Pooled Debt 


       To reduce the cost of issuing debt and to achieve a lower
       interest rate, governments sometimes agree to issue debt jointly
       rather than individually.  For instance, a state government may
       create a "bond bank" that issues debt in the state's name that is
       then used to purchase securities from local governments.  Local
       governments may also create their own bond banks or enter into
       "pooled debt" arrangements where one member issues debt and
       others borrow from the proceeds. 

       For Census Bureau statistics, such arrangements are reported as
       follows: 

           Debt issued, retired, and outstanding: The government in
           whose name the bond bank or pooled debt was issued is
           recorded with the amount issued, retired, and outstanding
           using regular census debt codes. 

           Loaning of proceeds to other governments: The distribution of
           the proceeds from the bond bank or pooled debt is not
           reported as an intergovernmental transaction.  Instead, for
           the government issuing such debt, the purchase of other
           government's securities or the borrowing of debt proceeds by
           other governments is reported as an investment under Offsets
           to Debt (code W01).  For the governments whose securities are
           sold or which borrows the proceeds, it is treated a long-term
           debt issued (codes 21*, 24*, or 29*). 

           Repayment of proceeds: When the member government repays part
           or all of the loan from the issuing government, it is
           reported as long-term debt retired by the former.  For the
           issuing government, the amount repaid each year reduces the
           security holding for offsets to debt (code W01). 

           Interest on debt: For the issuing government, the interest
           paid on the debt is reported under the appropriate interest
           expenditure category (I89, I91, I92, I93, or I94).  For the
           member governments, it is treated as in intergovernmental
           expenditure (and for the issuing government as intergovern-
           mental revenue). 

       Note that in some cases, the original debt is issued by a
       nongovernmental entity (such as a league of cities) which
       operates more like the joint activities described in Chapter
       Three.  In these cases, the debt and its related transactions are
       assigned to the member governments and reported as regular
       long-term debt. 

        
       9.63 Leases and Lease-Purchase Agreements 


       For Census Bureau statistics, leases, lease-purchase arrange-
       ments, lease-rental agreements, and the like are not considered
       public debt5.  Instead, payments on them are reported as capital
       outlay; see section 6.72 for details. 

       A government may enter into a leasing arrangement with a private
       firm in lieu of issuing debt and building their own facilities.
       The private firm obtains funding for the project, builds it, and
       leases the facility or equipment back to the government.  For the
       government, leases offer the advantages of not requiring voter
       approval and are not counted toward its debt limitation ceiling. 

       Note that Census Bureau debt categories do include lease-rental
       bonds issued by a dependent agency of a government which builds a
       facility that it leases back to the parent government.  Lease
       payments, of course, would not be reported since they represent
       intragovernmental transfers. 




















       9.64 Taxable Public Debt 


       For Census Bureau statistics, taxable public debt is reported in
       the same manner as tax exempt public debt. 

       Most government debt is tax exempt; that is, the interest it pays
       to bondholders is exempt from Federal income taxes.  In some
       cases, however, governments will issue debt that does not receive
       exemption from Federal taxes (for instance, to get around debt
       limitations). 


       ----------------------------- 
        
       1 Utility debt applies only to debt amounts that can be
         identified readily as being for particular utility purposes.
         Such obligations are included without reference to the
         conditions determining payment of interest and principal--that
         is, whether or not utility or general revenues are used.
         Likewise, general obligation bonds or other "tax supported"
         obligations issued specifically to fund utility operations or
         facilities are classed as utility debt (and interest on them as
         utility interest expenditure). 

       2 Includes any debt issued for liquor stores or insurance trust
         purposes. 

       3 Take note that this statistical category is broader than the
         "private activity bonds" that are regulated by such Federal
         laws as the Tax Reform Act of 1984, which excludes such debt as
         private multi-family rental housing and mortgage subsidy bonds
         that are included in the Census Bureau category. 

       4 For purposes of determining whether or not the original debt
         has been removed from the government's books, the Bureau
         considers the "official record" to be the balance sheet from
         the government's annual finance report.  Thus, defeased debt
         carried only in notes to the financial statements or in a debt
         compilation sheet would not be considered outstanding debt of
         the government. 

       5 Leases are not classified as debt for Census Bureau purposes
         for various reasons.  Unlike bonded debt, leases rarely
         generate any cash flow.  With no proceeds available, there are
         no funds to expend on capital outlays or to turn over to the
         private sector in return for an investment security.  Moreover,
         leases are rarely negotiable instruments, do not require voter
         approval or apply to debt ceiling limits, are funded by annual
         appropriations rather than dedicated taxes or other revenue
         sources (in effect, making them renewable one-year contracts),
         can be cancelled in some cases, and often have an "interest"
         component that is simply an imputed amount.  Thus, for Census
         Bureau statistics, leases are closer to the "pay-as-you-go" way
         of financing capital improvements than to debt.

         ----------------------------------------------------------------------------- 
                                  DESCRIPTIONS OF DEBT CATEGORIES                   
         ----------------------------------------------------------------------------- 

         -CATEGORY: By Length of Term

           ITEM: Short-term debt

                Codes: 61V - Short-term debt outstanding at beginning of fiscal year
                       64V - Short-term debt outstanding at end of fiscal year

           Definition: Interest-bearing debt payable one year or less from its date
                       of issue; obligations having no fixed maturity date (even
                       where outstanding for more than one year if payable from a
                       tax levied for collection in the same year it was issued).

             Examples: Bond anticipation notes, tax anticipation notes and warrants,
                       bank loans, tax-exempt commercial paper, and interest-bearing
                       short-term warrants and obligations.

           Exclusions: Accounts payable, noninterest-bearing warrants and obligations,
                       and interfund loans (nonliabilities); and long-term debt payable
                       within the current fiscal year (report at Long-term debt).

           ITEM: Long-term debt

                Codes (first number of 3-digit code)1:

                       19* - Long-term debt outstanding at beginning of fiscal year
                       2** - Long-term debt issued during fiscal year
                       3** - Long-term debt retired during fiscal year
                       4** - Long-term debt outstanding at end of fiscal year

                Exhibit Code:

                       5** - Long-term debt refunding during fiscal year

           Definition: All debt payable more than one year from its date of issue,
                       including those redeemable in less time under a "daily put
                       option" (option tender bonds).

             Examples: General obligation bonds (GOB), term bonds, serial bonds,
                       revenue bonds, industrial revenue bonds, pollution control
                       bonds, special assessment bonds, certificates of participation
                       (COPs), zero coupon or compound interest bonds, judgments,
                       mortgages, and construction loan notes (CLNs).

           Exclusions: Leases (operating or capital), interfund loans (except own
                       securities held as investments by other funds, such as employee
                       retirement systems), amounts owed in an agency or trust capacity
                       (e.g., employee tax withholdings), interest payable, advances
                       and contingent loans from other governments, unfunded obligations
                       of employee pension funds, accrued vacation or sick leave, and
                       rights of individuals to benefits from insurance trust systems.

                Notes: Treat tax anticipation warrants or notes outstanding more than
                       one year as short-term debt if they are payable from a specific
                       tax levied for collection in same year debt was issued.

         1 Throughout these descriptions of debt categories, the asterisk (*) is used
           to indicate other digits in the debt code showing the type of debt and its
           purpose.

         -CATEGORY: By Type of Long-Term Debt Activity

           ITEM: Long-term debt issued

                Codes (first two numbers of 3-digit code):

                       21* - Full faith and credit long-term debt issued
                       24* - Nonguaranteed long-term debt issued
                       29* - Unspecified long-term debt issued

                Exhibit Code:

                       52T - Refunding debt issued

           Definition: Par value of long-term obligations incurred (sold) during the
                       fiscal year--without adjustment for premiums, discounts, or
                       insurance--including original funding and refunding obligations.

           Exclusions: Debt obligations authorized but not actually incurred (sold)
                       during the fiscal year.

                Notes: Report premiums on debt issued at Miscellaneous General Revenue,
                       NEC, code U99, and insurance costs for issuing debt at Financial
                       Administration, code 23.  Ignore discounts since they do not
                       constitute an actual outlay of funds.  For zero coupon and other
                       deep discount bonds, report amount of proceeds, not their face
                       value.

           ITEM: Long-term debt retired

                Codes (first two numbers of 3-digit code):

                       31* - Full faith and credit long-term debt retired
                       34* - Nonguaranteed long-term debt retired
                       39* - Unspecified long-term debt retired

                Exhibit Code:

                       53T - Long-term debt retired through refunding

           Definition: Par value of long-term obligations liquidated by repayment,
                       by exchange, or by refunding during the fiscal year--without
                       adjustment for premiums or discounts.  Includes debt retired
                       from general or any special funds, current revenues, fund
                       balances, or assets accumulated for debt redemption in debt
                       service (sinking) funds.

           Exclusions: Amounts reserved for future debt retirement (i.e., payments
                       into debt service funds).

                Notes: (1) Report premiums paid on bonds retired before maturity at Other
                       and Unallocable, code 89.  (2) In cases of advance refunding,
                       consider the original issue of a debt obligation retired if it is
                       defeased and removed from the government's official accounting
                       records.  For debt collection purposes, "official records"
                       refers to a government's balance sheet, not to the notes which
                       accompany financial statements.  See Section 9.42 for detailed
                       information on advance refunding.

           ITEM: Long-term debt outstanding 

                Codes (first two numbers of 3-digit code):

                       19* - Long-term debt outstanding at beginning of fiscal year
                       41* - Full faith and credit long-term debt outstanding at end
                             of fiscal year
                       44* - Nonguaranteed long-term debt outstanding at end of
                             fiscal year

           Definition: Par value of long-term obligations remaining unpaid at close
                       of fiscal year, including obligations past due but not yet
                       presented for payment.

           Exclusions: Obligations defeased by advance refunding bonds and no
                       longer carried in the official accounting records (i.e.,
                       balance sheet) of the government.

                Notes: Include obligations for which funds have been turned over to a 
                       fiscal agent for their redemption but which have not been removed
                       from the official accounting records at the close of the
                       government's fiscal year.

         -CATEGORY: By Character of Long-Term Debt

           ITEM: Full-faith and credit

                Codes (first two numbers of 3-digit code):

                       21* - Full faith and credit long-term debt issued
                       31* - Full faith and credit long-term debt retired
                       41* - Full faith and credit long-term debt outstanding

           Definition: Long-term obligations for which the credit of the government,
                       implying the power of taxation, is unconditionally pledged.
                       Includes debt payable initially from specified tax or nontax
                       sources (e.g., toll highway fees, repayment of loans, or ear-
                       marked intergovernmental grants) but payable from any available
                       resources if the pledged sources are insufficient ("double
                       barreled" debt).

             Examples: General obligation bonds.

           Exclusions: Obligations backed only by default insurance or commercial
                       bank letters of credits, or LOCs (report at Nonguaranteed).

                Notes: Effective with fiscal year 1988 data, the following two sub-
                       categories for full faith and credit debt of state governments
                       were consolidated: general obligation bonds (including debt
                       initially payable from earmarked taxes) and debt payable
                       initially from specified nontax revenue.

           ITEM: Nonguaranteed

                Codes (first two numbers of 3-digit code):

                       24* - Nonguaranteed long-term debt issued
                       34* - Nonguaranteed long-term debt retired
                       44* - Nonguaranteed long-term debt outstanding

           Definition: Long-term obligations payable solely from pledged specific
                       sources--e.g., from nonproperty taxes ("limited tax" bonds),
                       from earnings of revenue producing activities (utilities, toll
                       facilities, college dormitories, commercial enterprises, and the
                       like), from special assessments, or from lease-rental arrange-
                       ments--and which do not constitute obligations against any other
                       resources of the government if the pledged sources are insufficient.

             Examples: Revenue bonds, special assessment bonds, pollution control
                       bonds, industrial or commercial development bonds, lease-rental
                       bonds, and certificates of participation (COPs).

           Exclusions: Debt initially payable from a specific revenue source but
                       payable from any available resources if pledged sources are
                       insufficient.

           ITEM: Unspecified in character

                Codes (first two numbers of 3-digit code):

                       29* - Unspecified long-term debt issued
                       39* - Unspecified long-term debt retired

           Definition: Long-term obligations not allocable between Full Faith and
                       Credit and Nonguaranteed.  Applies only to long-term debt
                       issued and retired of local governments canvassed by mail
                       or through central collection arrangements.

         -CATEGORY: By Purpose of Long-Term Debt

           Definition: Classification of long-term debt issued, retired, and
                       outstanding according to the function or activity
                       specifically intended to be financed from its proceeds.

                                                                    Covers activities
                                                                   described for these
          Debt                                                      function codes in
          Code                       Purpose                            Chapter 4
          **** *************************************************** *******************
          Utility Debt:

           A   Water supply systems*                                        91

           B   Electric power systems*                                      92

           C   Natural gas supply systems*                                  93

           D   Public mass transit systems*                                 94

          General Debt:

           F   Elementary and secondary schools, vocational-                12
               technical schools, and other educational
               institutions except those for higher education.

                                                                    Covers activities
                                                                   described for these
          Debt                                                      function codes in
          Code                       Purpose                            Chapter 4
          **** *************************************************** *******************
          General Debt (continued):

           G   Institutions of higher education (including auxil-        16,18,21
               iary enterprises like dormitories and athletic
               facilities) and education facilities except those
               for elementary-secondary education.

           T   Public debt for direct funding of private sector       Not applicable
               activities, such as industrial and commercial
               development,  pollution control of private facili-
               ties, housing and mortgage loans, private hospital
               construction, student loans, private sports stadia,
               convention centers, shopping malls, economic revit-
               alization, and other private projects.

               Excludes debt for projects that government directly
               oversees (vs simply giving proceeds to agent or
               trustee) even if project will be turned over or
               leased upon completion.  This complex category is
               discussed in more detail in Section 9.3.

           X   All other debt not classified above, including        Those not listed
               amounts related to liquor stores and insurance
               trust systems.


         * Covers debt amounts that can be identified readily for utility purposes,
           regardless of the conditions for repayment or its backing by the government.
           For instance, includes GOB or other tax-supported obligations issued
           specifically to finance utility projects even if redeemed by the govern-
           ment's general fund.

                Notes: (1) Effective with fiscal year 1987-88 data, other debt purpose
                       codes were eliminated due to the growing difficulty of obtaining
                       reliable detail on debt by its functional use.  The codes elimin-
                       ated and their new classification are as follows:

                         Old                                                      New
                         Code                   Purpose                           Code

                          E   Air transportation                                    X
                          H   Other Education, NEC                                  G
                          J   Hospitals                                             X
                          K   Highways-Regular                                      X
                          L           -Toll                                         X
                          M   Housing and community development                     X
                          N   Parks and recreation                                  X
                          P   Sewerage                                              X
                          R   Veterans' bonuses                                     X
                          S   Water transport and terminals                         X
                          T   Industrial development and pollution control          T
                          W   Mortgage revenue                                      T

                       (2) The entirely new purpose code, Public Debt for Private
                       Purposes (T), is a combination of industrial development and
                       pollution control (old T code) and mortgage revenue (old W
                       code) plus debt that was recorded in other purpose categories
                       (e.g., from the education debt categories, debt for student
                       education loans and from hospital debt category, debt to
                       finance private hospital construction).

                       (3) Debt statistics collected for the Federal Government are
                       limited to several outstanding codes which do not purport
                       either to distinguish between short- and long-term or to
                       indicate their functional uses, as follows:

                       41I - Increase in debt during the fiscal year (debt outstanding
                             at end of current fiscal year minus debt outstanding at
                             end of prior fiscal year).

                       41V - Debt held by Federal Government accounts, primarily Fed-
                             eral insurance trust funds (e.g., Social Security, Medi-
                             care, and  Military and Civil Service Retirement trusts).

                       41Y - Debt held by persons and organizations outside the Federal
                             Government (including Federal Reserve Banks' holdings of
                             Federal securities purchased for monetary policy reasons).

                       41Q - Debt obligations of the U.S. Treasury, including short-term
                             notes and Treasuring borrowing on behalf of the Federal
                             Financing Bank.

                       41W - Debt obligations of Federal agencies, such as the Federal
                             Savings and Loan Insurance Corporation (FSLIC), Federal
                             Housing Administration (FHA), Federal Deposit Insurance
                             Corporation (FDIC), Postal Service, and Tennessee Valley
                             Authority (TVA).  Excludes agency borrowing from the
                             Federal Financing Bank and debt of government-sponsored
                             enterprises (e.g., Federal National Mortgage Association,
                             Federal Home Loan Bank Board, and Farm Credit Administration).

                       Note the overlap in these debt codes: total debt outstanding is
                       equal to both the sum of 41V plus 41Y and the sum of 41Q plus 41W.

         ---------------------------------------------------------------------------------
                               SUMMARY OF DEBT CATEGORIES AND CODES*       
         ---------------------------------------------------------------------------------

                           ~~~~~~~~~~~~~~~~~~~~~~~~~~ FUNCTION ~~~~~~~~~~~~~~~~~~~~~~~~~~~

                           ---------- Utility ----------- -------- General ---------

                                                                             Public
                                           Natural Public ~~~ Education ~~~ Debt for
                           Water  Electric  Gas     Mass  Elementary Other/ Private   All
               ITEM        Supply  Power   Supply Transit -Secondary Higher Purposes Other

         SHORT-TERM DEBT, outstanding1:

           Beginning of
             fiscal year...  -       -       -       -        -        -       -      61V
           End of fiscal
             year..........  -       -       -       -        -        -       -      64V

         LONG-TERM DEBT:
         
         Outstanding at
           beginning of
           fiscal year..... 19A     19B     19C     19D       -       19H     19T     19X

         Issued during fiscal year:

           Full-faith
             and credit.... 21A     21B     21C     21D      21F      21G      -      21X
           Nonguaranteed... 24A     24B     24C     24D      24F      24G     24T     24X
           Unspecified..... 29A     29B     29C     29D      29F      29G      -      29X

           Exhibit:
           Refunding debt1.  -       -       -       -        -        -       -      52T

         Retired during fiscal year:

           Full-faith
             and credit.... 31A     31B     31C     31D      31F      31G      -      31X
           Nonguaranteed... 34A     34B     34C     34D      34F      34G     34T     34X
           Unspecified..... 39A     39B     39C     39D      39F      39G      -      39X

           Exhibit:
           Refunded debt1..  -       -       -       -        -        -       -      53T

         Outstanding at end of fiscal year:

           Full-faith
             and credit.... 41A     41B     41C     41D      41F      41G      -      41X
           Nonguaranteed... 44A     44B     44C     44D      44F      44G     44T     44X

           Federal Government only:
            Increase in
              debt.........  -       -       -       -        -        -       -      41I
            Held by self...  -       -       -       -        -        -       -      41V
            Held by others.  -       -       -       -        -        -       -      41Y
            Public debt....  -       -       -       -        -        -       -      41Q
            Agency debt....  -       -       -       -        -        -       -      41W 
                                   

         * Dash (-) indicates no code for that item.

         1 Debt code suffix does not represent a functional activity.

        <See next page for detailed code list with coverage of data collection information.>

       Indebtedness                                                           Debt-7(0)-6/92

         ------------------------------------------------------------------------------
                   DEBT DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION*        
         ------------------------------------------------------------------------------
                                                 General Purpose Governments 
                                                                 Large                 
                                                                 city-  Other Special
                        ITEM                    Federal State DC county local district
    
         SHORT-TERM DEBT OUTSTANDING:
                                               
           61V Beginning of fiscal year.........   N      .    .   .      .      .
           64V End of fiscal year...............   N      .    .   .      .      .

         LONG-TERM DEBT:

          OUTSTANDING AT BEGINNING
            OF FISCAL YEAR:

           19A Water supply systems.............   N      N    N   N      .      .
           19B Electric power systems...........   N      N    N   N      .      .
           19C Natural gas supply systems.......   N      N    N   N      .      .
           19D Public mass transit systems......   N      N    N   N      .      .
           19H Education (all)..................   N      N    N   N      .      .
           19T Public debt for private purposes.   N      N    N   N      .      .
           19X All other debt...................   N      .    .   .      .      .

         ISSUED DURING FISCAL YEAR,

           ---Full-faith and credit:
           21A Water supply systems.............   N      .    .   .      N      N
           21B Electric power systems...........   N      .    N   .      N      N
           21C Natural gas supply systems.......   N      .    N   .      N      N
           21D Public mass transit systems......   N      .    N   .      N      N
           21F Elementary-secondary education...   N      .    .   .      N      N
           21G Higher and other education.......   N      .    .   .      N      N
           21X All other debt...................   N      .    .   .      N      N

           ---Nonguaranteed:
           24A Water supply systems.............   N      .    .   .      N      N
           24B Electric power systems...........   N      .    N   .      N      N
           24C Natural gas supply systems.......   N      .    N   .      N      N
           24D Public mass transit systems......   N      .    N   .      N      N
           24F Elementary-secondary education...   N      .    .   .      N      .
           24G Higher and other education.......   N      .    .   .      N      .
           24T Public debt for private purposes.   N      .    .   .      .      .
           24X All other debt...................   N      .    .   .      N      N

           ---Unspecified:
           29A Water supply systems.............   N      N    N   N      .      .
           29B Electric power systems...........   N      N    N   N      .      .
           29C Natural gas supply systems.......   N      N    N   N      .      .
           29D Public mass transit systems......   N      N    N   N      .      .
           29F Elementary-secondary education...   N      N    N   N      .      .
           29G Higher and other education.......   N      N    N   N      .      .
           29X All other debt...................   N      N    N   N      .      .

           ---Exhibit: Refunding bonds issued (see Section 9.4):
           52T Refunding issues.................   N      .    .   .      N      N

         RETIRED DURING FISCAL YEAR,
           ---Full-faith and credit:
           31A Water supply systems.............   N      .    .   .      N      N
           31B Electric power systems...........   N      .    N   .      N      N
           31C Natural gas supply systems.......   N      .    N   .      N      N

         * Shows whether data are collected () or not collected (N) for that type.

       Indebtedness                                                        Debt-8(0)-6/92
         ------------------------------------------------------------------------------
                   DEBT DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION*        
         ------------------------------------------------------------------------------
                                                 General Purpose Governments 
                                                                 Large                 
                                                                 city-  Other Special
                        ITEM                    Federal State DC county local district
         RETIRED DURING FISCAL YEAR (Continued),

           ---Full-faith and credit (continued):
           31D Public mass transit systems......   N      .    N   .      N      N
           31F Elementary-secondary education...   N      .    .   .      N      N
           31G Higher and other education.......   N      .    .   .      N      N
           31X All other debt...................   N      .    .   .      N      N

           ---Nonguaranteed:
           34A Water supply systems.............   N      .    .   .      N      N
           34B Electric power systems...........   N      .    N   .      N      N
           34C Natural gas supply systems.......   N      .    N   .      N      N
           34D Public mass transit systems......   N      .    N   .      N      N
           34F Elementary-secondary education...   N      .    .   .      N      .
           34G Higher and other education.......   N      .    .   .      N      .
           34T Public debt for private purposes.   N      .    .   .      .      .
           34X All other debt...................   N      .    .   .      N      N

           ---Unspecified:
           39A Water supply systems.............   N      N    N   N      .      .
           39B Electric power systems...........   N      N    N   N      .      .
           39C Natural gas supply systems.......   N      N    N   N      .      .
           39D Public mass transit systems......   N      N    N   N      .      .
           39F Elementary-secondary education...   N      N    N   N      .      .
           39G Higher and other education.......   N      N    N   N      .      .
           39X All other debt...................   N      N    N   N      .      .

           ---Exhibit: Long-term debt retired by refunding (see Section 9.4):
           53T Long-term debt refunded..........   N      .    .   .      N      N

         OUTSTANDING AT END OF FISCAL YEAR,

           ---Full-faith and credit:
           41A Water supply systems.............   N      .    .   .      .      .
           41B Electric power systems...........   N      .    N   .      .      .
           41C Natural gas supply systems.......   N      .    N   .      .      .
           41D Public mass transit systems......   N      .    N   .      .      .
           41F Elementary-secondary education...   N      .    .   .      .      .
           41G Higher and other education.......   N      .    .   .      .      .
           41X All other debt...................   N      .    .   .      .      .

           ---Nonguaranteed:
           44A Water supply systems.............   N      .    .   .      .      .
           44B Electric power systems...........   N      .    N   .      .      .
           44C Natural gas supply systems.......   N      .    N   .      .      .
           44D Public mass transit systems......   N      .    N   .      .      .
           44F Elementary-secondary education...   N      .    .   .      .      .
           44G Higher and other education.......   N      .    .   .      .      .
           44T Public debt for private purposes.   N      .    .   .      .      .
           44X All other debt...................   N      .    .   .      .      .

           ---Federal Government only:
           41I Increase in total debt ..........   .      N    N   N      N      N
           41V Held by Federal Government itself   .      N    N   N      N      N
           41Y Held by others...................   .      N    N   N      N      N
           41Q Public debt......................   .      N    N   N      N      N
           41W Federal agency debt..............   .      N    N   N      N      N

         * Shows whether data are collected () or not collected (N) for that type.

       Indebtedness                                                        Debt-9(0)-6/92

                   CHAPTER 10.  CASH AND SECURITY HOLDINGS 


       Contents and Abstract: 

       10.1 Cash and Security Holdings Definition 
        10.11 Assets Outside of Census Bureau Definition 
        10.12 Major Classification Changes with Fiscal Year 1987-88 Data 

       10.2 Types of Cash and Securities Covered 

       10.3 Purpose of Holdings of Cash and Securities 
        10.31 Insurance Trust Funds 
        10.32 Other Than Insurance Trust Funds 
        10.33 Additional Notes Regarding Offsets to Debt Category 

       10.4 Pooled Investments 

       Chart: 

        10-A Examples of Assets Included and Excluded from Census Bureau
             Definition of Cash and Securities 

       Description Sheets 


       Befitting their position as important fiscal entities, govern-
       ments are major holders of cash and securities, including excess
       money on hand as well as purposeful investments for future
       earnings.  This area, too, has grown increasingly complex over
       the last decade or so.  As a result, the Census Bureau has made
       major changes to its classification system, effective with fiscal
       year 1987-88 data. 

       Governments' balance sheets contain a wide variety of assets;
       however, only those that are cash and investment securities are
       included in Census Bureau statistics.  Moreover, this category
       applies solely to state and local governments.  Although the
       Federal Government holds large amounts of cash and investments,
       no comparable statistics are collected on them (much of which
       consists of its own securities).
        
        
       10.1 Cash and Security Holdings Definition 


       The title of this category, cash and security holdings, is
       self-defining.  Examples to supplement this definition include
       cash on hand, demand or time deposits, savings accounts,
       government and private securities (bonds, notes, mortgages,
       corporate stocks, etc.), and loans and other credit paper held by
       government loan and investment funds.  Chart 10-A has a lengthy
       list of specific assets that fall within (and outside) the scope
       of this category. 

       This definition includes cash and security holdings of not only
       the general government but also those of all autonomous agencies,
       boards, commissions, or other organizations categorized as
       dependent on the government concerned (see Chapter Three).
       Stated in terms of the accounting procedures from which these
       data originate, this category covers cash and security holdings
       of all accounting funds of a government other than intragovern-
       mental service (revolving), agency, and private trust funds. 

       The value of cash and securities is reported as of the last day
       of the government's fiscal year.  Along with debt outstanding,
       this is the only finance data to represent fiscal condition at a
       specific point in time (rather than financial activity during the
       fiscal year). 
        
       Effective with fiscal year 1987-88 finance data, cash and
       security holdings are classified according to the purpose for
       which they are held.  For public employee retirement systems and
       unemployment compensation funds, these data are categorized
       further by the type of cash or security involved. 


       10.11 Assets Outside of Census Bureau Definition


       Unlike the other three major types of finance data collected by
       the Census Bureau, the Bureau's concept of cash and security
       holdings is an exclusive one, limited to the most fluid types of
       assets governments own. 

       The following types of assets are excluded from Census Bureau
       statistics on governments: 

         - Real property, land, buildings, improvements, machinery,
           equipment, and other fixed assets*. 

         - Construction in progress.

         - Materials, supplies, and inventories. 

         - Accounts receivables, taxes receivables, special assessment
           receivables, interfund receivables, tax liens, advances to
           other funds, and other such monies owed to a government. 

         - Unamortized premiums on investments. 
          
         - Prepaid or deferred expenses. 

         - Goods or commodities held for resale (e.g., of liquor stores
           or utilities). 

         - Intangible assets. 

         - Assets held by private trust funds or by funds representing
           agency transactions (e.g., withholdings of employee Social
           Security taxes). 

       * The retirement survey collects data on real property holdings
         using special exhibit codes; see Chapter 11 for details. 


       10.12 Major Classification Changes with Fiscal Year 1987-88 Data 


       Because of the growing complexity of government cash and
       investment management practices (particularly pooled investment
       funds, described below in Section 10.4), the Bureau found the
       classification of cash and securities by the type of cash or
       security held becomingly increasingly difficult to obtain.
       Consequently, nearly all categories relating to the type of cash
       or security held by a government were consolidated, effective
       with fiscal year 1987-88 data.  The only exceptions were cash and
       security holdings of government-administered public employee
       retirement systems and unemployment compensation systems. 

       This consolidation of categories is summarized by the following: 

             Purpose of Holding             Old Codes        New Codes
       ------------------------------- -------------------- ----------- 

       Insurance Trust Systems:
         Public Employee Retirement*..     X33, X30             X30
                                           X35, X44             X44
         Unemployment Compensation....   <No changes.>           -
         Workers' Compensation........ Y21,Y30,Y33,Y35,Y44      Y21
         Other Insurance Trusts....... Y61,Y70,Y73,Y75,Y84      Y61

       Other Than Insurance Trusts:
         Offsets to Debt.............. W01,W10,W13,W15,W24      W01
         Bond Funds................... W31,W40,W43,W45,W54      W31
         All Other Funds.............. W61,W70,W73,W75,W84      W61

       * These categories have been preserved as special exhibit
         statistics; see Chapter Eleven.

       A classification change in the debt area had an important effect
       on cash and security data.  The amount of Public Debt for Private
       Purposes (code 44T) outstanding at the end of the fiscal year is
       recorded as an Offset to Debt (code W01).  Before fiscal year
       1987-88 data, this treatment was limited to mortgage revenue
       debt. 


       10.2 Types of Cash and Securities Covered 


       The data which the Census Bureau reports in these categories
       consist of two major types: cash and deposits, a single item
       group, and securities.  Listed below are the various items that
       make up these groups.  Except for public employee retirement
       systems, the Bureau no longer makes any effort to identify them
       separately.  For a detailed definition, see the public employee
       retirement systems section in the Description Sheets that follow
       this narrative. 

          Cash and Short-Term Deposits 

          Securities: Federal Government Securities 
                      Federal Agency Securities 
                      State and Local Government Securities 
                      Corporate Bonds 
                      Corporate Stock 
                      Mortgages Held Directly (by a government as an
                        investment 
                      All Other Securities, N.E.C. 

       Note that investment securities are reported at their book value
       (less any discounts), not at their current market value or par
       (face) value.  (Any profit or loss on their sale is reported as a
       revenue or expenditure.)


       10.3 Purpose of Holdings of Cash and Securities 


       The major classification of cash and securities is according to
       the purpose for which they are held.  Their purpose is divided
       into two major groups: Insurance Trust Funds and Other Than
       Insurance Trust Funds. 


       10.31 Insurance Trust Funds 


       A major function of insurance trust systems is the accumulation
       of assets to pay for future benefits.  Consequently, this group
       accounts for the largest share of cash and securities held by
       governments.  It is divided into these categories: 

          Public Employee Retirement Systems 
          Unemployment Compensation Systems* 
          Workers' Compensation Systems 
          Other Insurance Trusts Systems 

       *Although the Federal-state cooperative unemployment compensation
       trust fund is administered by the Federal Government, the account
       of each state (and the District of Columbia) is reported with the
       latter's cash and security holdings. 

       See the Description Sheets for a more detailed definition of
       these categories.  Chapter Eleven contains a formal definition of
       an insurance trust system. 


       10.32 Other Than Insurance Trust Funds 


       Cash and securities held by funds of a government other than
       insurance trusts are classified into one of three categories: 

          Offsets to Debts (Debt Service or Sinking Funds) 
          Bond Funds 
          All Other Funds 


       See the Description Sheets for a more detailed definition of
       these categories. 


       10.33 Additional Notes Regarding Offsets to Debt Category 


       The category for offsets to debt deserves additional explanation. 

       First, in addition to cash and securities to pay debt service on
       long-term debt, it includes an amount equal to all the long-term
       debt outstanding for Public Debt for Private Purposes (code 44T).
       The rationale for this treatment is the fact that the proceeds
       from this type of indebtedness are not expended by a government
       but are turned over to the private sector for whatever purpose it
       was sold.  The offset recorded as an asset, therefore, represents
       the obligation of the private organization to repay the govern-
       ment for its debt service costs.  This offset is reduced as the
       debt creating it is retired. 

       Second, for state governments and the largest city and county
       governments whose data are compiled specially by the Census
       Bureau, Offsets to Debt is subdivided into two categories: 

         - Offsets to full-faith and credit long-term debt (Code 71W) 

         - Offsets to nonguaranteed long-term debt (Code 74W) 

       These two categories are used to separate Net Long-Term Debt
       Outstanding between full-faith and credit and nonguaranteed (see
       Section 9.53). 


       10.4 Pooled Investments 


       To the extent possible, all cash and securities of pooled
       investment funds are assigned according the purpose of the fund
       holding "shares" in it. 

       A growing phenomenon in government cash and investment management
       is the pooling of investments.  Rather than have each accounting
       fund of a government invest its own surplus cash, a government
       creates a large "pool" of money based on shares "owned" by the
       other funds.  The larger amount of money involved allows the
       government to earn a higher rate of return than each fund could
       receive by itself.  On the other hand, this practice has made the
       collection of data on cash and security holdings more difficult. 



         ------------------------------------------------------------------------------ 
                         DESCRIPTIONS OF CASH AND SECURITIES CATEGORIES
         ------------------------------------------------------------------------------ 

         Cash and security holdings of a government at the close of its fiscal year,
         including those of its dependent agencies, utilities, and liquor stores.

         Government balance sheets report a wide variety of assets; Census Bureau
         statistics, however, are limited to just cash, governmental and private
         securities, and other investments.  All other assets, such as fixed assets,
         equipment, materials, most receivables, interfund loans, and deferred amounts,
         are excluded.  Chart 10-A provides examples of the most common types
         of assets that are included and excluded in this classification schema.

         These data are categorized according to the type of accounting fund that
         reports them, the only area in Census Bureau statistics to preserve the
         accounting nature of the source data.  These categories are grouped into
         insurance trust and all other funds, as follows:

            INSURANCE TRUST SYSTEMS
              Public Employee Retirement Systems
              Unemployment Compensation Systems
              Workers' Compensation Systems (state governments only)
              Other Insurance Trust Systems (state governments only)

            OTHER THAN INSURANCE TRUST SYSTEMS
              Offsets to Debt (Debt Service or Sinking Funds)
              Bond Funds
              All Other Funds

         Prior to fiscal year 1987-88 data, these categories were classified into
         more detailed categories according to the type of cash or security involved
         (e.g., cash and deposits, Federal treasury notes, state and local government
         securities, etc.).  Because of the growing difficulties in obtaining the data
         (primarily the impact of pooled investment accounts), this sub-detail is no
         longer collected except for employee retirement systems and unemployment
         compensation systems.

         The codes below apply only to state and local governments; no comparable data
         are collected for the Federal Government.

         INSURANCE TRUST SYSTEMS

         Except for Unemployment Compensation Systems, data for these categories are
         collected largely by a separate mail canvass of insurance trust systems.
         Chapter Eleven includes a detailed description of each type of insurance
         trust system below.

         CATEGORY: Public Employee Retirement Systems

         Cash and security holdings of government-administered retirement systems
         for public employees.

         In addition to the categories below, there are also special exhibit codes
         for employee retirement cash and security holdings (see Chapter Eleven).

             CODE: X21               ITEM: Cash and Short-Term Investments 

             Includes: Cash on hand and on deposit; demand deposits; time or savings
                       deposits; certificates of deposits; repurchase agreements
                       ("repos"); reverse repurchase agreements ("reverse repos");
                       commercial and finance company paper; bankers acceptances;
                       and money market funds.

             CODE: X30               ITEM: Federal Government Securities 

             Includes: Obligations of the U.S. Treasury (including short-term notes)
                       and the Federal Financing Bank (FFB); and bonds and mortgage-
                       backed securities issued by Federal agencies, such as the
                       Commodity Credit Corporation (CCC), Export-Import Bank, Federal
                       Housing Administration (FHA), Financing Corporation (FICO),
                       Government National Mortgage Association (GNMA, or "Ginnie
                       Mae"), Federal Savings and Loan Insurance Corporation (FSLIC),
                       Small Business Administration (SBA), U.S. Postal Service, and
                       Tennessee Valley Authority (TVA).

             Excludes: Mortgages directly held by employee retirement system (use code
                       X42) and securities of Federally-sponsored or chartered private
                       and quasi-private credit organizations, such as the Federal Nat-
                       ional Mortgage Association, FNMA or "Fannie Mae" (use code X40).

                Notes: Prior to fiscal year 1987-88 data, these securities were
                       differentiated between Federal treasury notes (code X30) and
                       Federal agency securities (code X33).  Also see Chapter Eleven
                       for a discussion of special exhibit codes for employee retire-
                       ment cash and securities.

             CODE: X40               ITEM: Corporate Bonds 

             Includes: Debentures; convertible bonds; railroad equipment certificates;
                       and securities of Federally-sponsored or chartered private and
                       quasi-private organizations like Federal Home Loan Banks (FHLB),
                       Federal Home Loan Mortgage Corporation (FHLMC, or "Freddie
                       Mac"), Federal National Mortgage Association (FNMA, or "Fannie
                       Mae"), Federal farm credit banks, and Student Loan Marketing
                       Association (SLMA, or "Sallie Mae").

                Notes: Report such securities at their book value (i.e., their original
                       cost less any discounts), not at either their current market or
                       par (face) value.

             CODE: X41               ITEM: Corporate Stocks 

             Includes: Common and preferred stock, warrants, and shares in investment
                       companies.

                Notes: Report such securities at their book value (i.e., their original
                       cost less any discounts), not at either their current market or
                       par (face) value.

             CODE: X42               ITEM: Mortgages Held Directly

             Excludes: Mortgage-backed Federal securities (use code X30) and real
                       property directly held by system (use exhibit code X46).


             CODE: X47               ITEM: Miscellaneous Investments

             Includes: Venture capital; partnerships; and real estate investment
                       trusts.

             Excludes: Real property held directly by system (use exhibit code X46).

                Notes: Prior to fiscal year 1987-88 data, this category was classified
                       as an exhibit code.

             CODE: X44               ITEM: All Other Securities, NEC

             Includes: Securities of state and local governments (including those
                       issued by parent government administering the system and
                       purchased for investment purposes); investments held in trust
                       by other agencies, including funds administered by private
                       agencies, guaranteed investment accounts, mutual fund shares,
                       and governmental pooled investment accounts; shares held in
                       mutual funds; foreign and international securities; conditional
                       sales contracts; pooled life insurance investments; direct
                       loans; and loans to system members.

                Notes: Effective with fiscal year 1987-88 data, includes securities of
                       state and local governments formerly classed at code X35.

         CATEGORY: Unemployment Compensation Systems

         Funds held by the U.S. Treasury in a trust account maintained for each partic-
         ipating government by the cooperative Federal-state unemployment compensation
         insurance system.  Data for this category, which applies only to state
         governments and to the District of Columbia, are obtained from the Employment
         and Training Administration of the U.S. Department of Labor.  Note that the
         two categories below are considered to be "cash and deposits."

             CODE: Y07               ITEM: Trust Fund Account in U.S. Treasury

             CODE: Y08               ITEM: Other (Clearing and Benefit Accounts)

                Notes: May be a positive or a negative number.

         CATEGORY: Workers' Compensation Systems

         Cash and security holdings of state government compulsory accident and injury
         insurance systems for workers' compensation.

             CODE: Y21               ITEM: Cash and Securities

             Includes: Various cash and security assets as delimited in Chart 10-A.

                Notes: Prior to fiscal year 1987-88 data, this code was divided further
                       into cash and deposits (code Y21), Federal treasury securities
                       (code Y30), Federal agency securities (code Y33), state and
                       local government securities (code Y35), and nongovernmental
                       securities (code Y44).

         CATEGORY: Other Insurance Trust Systems

         Cash and security holdings of state government insurance trust systems other
         than employee retirement, unemployment compensation, and workers' compensation.


































             CODE: Y61               ITEM: Cash and Securities

             Includes: Various cash and security assets as delimited in Chart 10-A.

                Notes: Prior to fiscal year 1987-88 data, this code was further divided
                       into cash and deposits (code Y61), Federal treasury securities
                       (code Y70), Federal agency securities (code Y73), state and
                       local government securities (code Y75), and nongovernmental
                       securities (code Y84).

         OTHER THAN INSURANCE TRUSTS

         CATEGORY: Offsets to Debt (Debt Service or Sinking Funds) 

         Cash and security holdings specifically for debt service (interest payments
         and redemption of principal) on long-term debt, including those of utilities,
         whether full-faith and credit or nonguaranteed.

         Includes cash on hand with fiscal agents for debt service or for redemption
         of uncanceled debt; bond reserve funds; balances in refunding bond accounts
         held pending completion of refunding transactions (other than for advance
         refunding); and credit paper or other assets of credit funds which are
         pledged to the ultimate redemption of debt incurred to finance loan activities
         of such funds.  Covers assets held for debt redemption up to the amount of
         the specific debt for which they were accumulated plus related interest.

         Also includes any mortgages and land contracts (at book value), notes receiv-
         ables held as offsets to public debt for financing private sector activities
         (i.e., an amount equal to debt outstanding classified at code 44T), and the
         value of loans made by credit funds from debt proceeds.  Prior to fiscal year
         1987-88 data, the treatment of offsets cited above was limited to mortgage
         revenue bonds; effective with fiscal year 1987-88 data, it was expanded to
         cover all types of public debt for private purposes.

         Excludes value set on land acquired by foreclosure, other real property,
         taxes or accounts receivable, interfund loans, and other noninvestment assets.

         Prior manuals made a distinction between reserves for the redemption of debt
         principal (reported under this category) and for the payment of interest
         (reported under All Other Funds).  In recent years, however, data reported
         here has included an increasing amount for interest since the majority of
         financial reports from which the data are gathered no longer separate the two
         components.  Note, too, that the GASB definition of a debt service fund
         makes no distinction between interest and principal.

             CODE: W01               ITEM: Cash and Securities

             Includes: Various cash and security assets as delimited in Chart 10-A and
                       industrial leases recorded as offsets to industrial development
                       debt for the private sector.

             Excludes: Balances in advance refunding accounts held for future payment
                       of debt that has been defeased and removed from the official
                       accounts of the government (exclude entirely from survey).

                Notes: Prior to fiscal year 1987-88 data, this code was further divided
                       into cash and deposits (code W01), Federal treasury securities
                       (code W10), Federal agency securities (code W13), state and
                       local government securities (code W15), and nongovernmental
                       securities (code W24).

                       An amount recorded as offsets to public debt for private
                       purposes is reduced as the debt creating it is retired.

         CATEGORY: Bond Funds

         Cash and security holdings of accounting funds established specifically to
         hold proceeds of bond issues (and related revenues) pending their disburse-
         ment.

             CODE: W31               ITEM: Cash and Securities

             Includes: Various cash and security assets as delimited in Chart 10-A.

             Excludes: "Capital project funds" whose sources of revenue do not include
                       proceeds of bond issues (report at All Other Funds, code W61)
                       and proceeds of public debt for private purposes not yet
                       distributed (report at Offsets to Debt, code W01).

                Notes: Prior to fiscal year 1987-88 data, this code was further divided
                       into cash and deposits (code W31), Federal treasury securities
                       (code W40), Federal agency securities (code W43), state and
                       local government securities (code W45), and nongovernmental
                       securities (code W54).

         CATEGORY: All Other Funds

         Cash and security holdings of funds and other accounts except those cited
         above, including utilities and liquor stores.

             CODE: W61               ITEM: Cash and Securities

             Includes: Various cash and security assets as delimited in Chart 10-A.

                Notes: Prior to fiscal year 1987-88 data, this code was further divided
                       into cash and deposits (code W61), Federal treasury securities
                       (code W70), Federal agency securities (code W73), state and
                       local government securities (code W75), and nongovernmental
                       securities (code W84).





































         ------------ DETAILED CODE LIST WITH COVERAGE OF DATA COLLECTION* ------------

                                               General Purpose Governments            

                                                                Large                  
                                                                city-   Other  Special
         CODE - TYPE OF ASSET               Federal  State  DC  county  local  district  

         INSURANCE TRUST SYSTEMS:

         ---Public Employee Retirement:
         X21-Cash and Short-Term
             Investments...................    N       .     .    .       .       .
         X30-Federal Government Securities.    N       .     .    .       .       .
         X40-Corporate Bonds...............    N       .     .    .       .       .
         X41-Corporate Stocks..............    N       .     .    .       .       .
         X42-Mortgages Held Directly.......    N       .     .    .       .       .
         X47-Miscellaneous Investments.....    N       .     .    .       .       .
         X44-All Other Securities, NEC.....    N       .     .    .       .       .

         ---Unemployment Compensation:
         Y07-Balance in U.S. Treasury......    N       .     .    N       N       N
         Y08-Other (Clearing and Benefit)..    N       .     .    N       N       N

         ---Workers' Compensation:
         Y21-Cash and Securities...........    N       .     N    N       N       N

         ---Other Insurance Trust Systems:
         Y61-Cash and Securities...........    N       .     N    N       N       N


         OTHER THAN INSURANCE TRUST SYSTEMS:

         ---Offsets to Debt (Debt Service or Sinking Funds):
         W01-Cash and Securities...........    N       .     .    .       .       .

         ---Bond Funds:
         W31-Cash and Securities...........    N       .     .    .       .       .

         ---All Other Funds:
         W61-Cash and Securities...........    N       .     .    .       .       .


         * Shows whether data are collected () or not collected (N) for that type.

                 CHAPTER 11.  SOCIAL INSURANCE TRUST SYSTEMS 
       

       Contents and Abstract: 

       11.1 Definition of Social Insurance Trust System 
        11.11 Examples of Insurance Systems Included and Excluded by
              this Definition

       11.2 How Insurance Trust Statistics Relate to Regular Finance
            Statistics 

       11.3 Types of Insurance Trust Systems 
        11.31 Public Employee Retirement Systems 
        11.32 Unemployment Compensation Systems 
        11.33 Workers' Compensation Systems 
        11.34 Other Insurance Trust Systems (including Federal-only
              ones) 

       11.4 Insurance Trust Exhibit Codes 
        11.41 Public Employee Retirement Exhibit Codes 
        11.42 Unemployment Compensation Exhibit Codes 
        11.43 Workers' Compensation Exhibit Codes 
        11.44 Other Insurance Trust Systems Exhibit Codes

       11.5 Special Topics 
        11.51 Classifying Debt for Unemployment Compensation Funds 
        11.52 Loans to Parent Government by Insurance Trust Systems 
        
       Chart: 
        
        11-A Summary of Insurance Trust Codes (Regular and Exhibit) 


       Among their numerous duties, governments provide social insurance
       to the public, ranging from retirement systems and disability
       compensation to affordable life insurance.  One of the four
       sectors of governments, insurance trust systems have grown
       dramatically over the years, accounting for 24% of total Federal,
       state, and local government revenue in fiscal year 1989-90 versus
       only 12% in fiscal year 1960. 

       The Census Bureau provides two types of statistics on insurance
       trust systems.  First, they are reported with the regular finance
       data about governments.  And, second, since insurance trust
       systems involve major financial activities that fall outside the
       scope of the regular classification schema, the Bureau provides
       additional exhibit statistics whose focus is exclusively on
       insurance trusts. 


       11.1 Definition of Social Insurance Trust System 


       Governments administer a wide variety of insurance-type programs
       in addition to maintaining various "trust" funds.  For Census
       Bureau statistics, however, only a selected few of these qualify
       as "insurance trust systems." 

       To be categorized as a social insurance trust for Census Bureau
       purposes, a government's system must meet all of the following
       criteria*: 

          (1) The system must be financed by a separate accounting fund
              of the administering government.  This criteria excludes
              many pay-as-you-go plans. 

          (2) This fund must have some type of assured revenue stream or
              dedicated revenue source other than appropriations from
              the administering government (generally, contributions or
              premiums imposed on its members and/or member employers). 

          (3) The system must be a social insurance plan--that is, it
              must have a social purpose such as benefitting the
              disabled or disadvantaged, aiding individuals who cannot
              afford private insurance, providing future income, and the
              like. 

          (4) The members of the system must be outside the government
              itself--that is, the plan cannot be for insuring the
              government itself against risks.  For this criteria,
              public employees are considered to be outside the
              government. 

          (5) The plan must be administered directly by the government
              itself--that is, it just cannot collect contributions and
              then turn them over to a private insurer who assumes the
              actual risks and administers the plan. 

       * Note that of the four types of insurance trust systems recog-
         nized by the Census Bureau, only the public employee retirement
         systems category applies to local government finances (plus the
         District of Columbia's unemployment compensation system); all
         other types apply to Federal and/or state governments. 


       11.11 Examples of Insurance Systems Included and Excluded by this
             Definition 


       The following examples illustrate the types of insurance programs
       that meet and fail the above criteria: 

       o Since the Federal Government workers' compensation program is a
         pay-as-you-go "plan" funded by agency operating funds and
         having no separate accounting fund, it fails the first two
         criteria for being an insurance trust system. 

       o Some state governments operate pooled, self-insurance programs
         providing general liability insurance to local governments
         within the state, funded by premiums levied against its
         members.  Generally, their purpose is to provide a low-cost
         alternative to more expensive (or unavailable) private
         insurance.  Since these types of insurance plans, however, are
         designed to protect the governments themselves, they do not
         meet the social benefit test of criteria three. 

       o Since most self-insurance or risk management funds are designed
         to insure the government itself, they fail to meet the fourth
         criteria regarding outside membership. 

       o A state government insurance plan to protect homeowners against
         certain catastrophic risks, either because private insurance is
         unavailable or unaffordable, would meet the social criteria
         test and would be classified as an insurance trust as long as
         it met the other four criteria. 


       11.2 How Insurance Trust Statistics Relate to Regular Finance
            Statistics 


       Regular Census Bureau finance statistics provide only selected
       data on insurance trusts, excluding such activities as
       contributions from the administering government, the cost of
       administering systems (reported in general government sector),
       and certain investment assets that are neither cash nor
       securities. 

       To provide these missing pieces, the Bureau has created exhibit
       categories used only for special presentations of insurance trust
       activities. 

       The principle differences in insurance trust finances between the
       regular statistics and these exhibit data can be summarized as
       follows: 

         (1) Regular finance insurance trust revenue excludes (as an
             intragovernmental transfer) contributions and other
             payments from the administering government, including
             payments made on behalf of its employees who are members of
             the system.  Insurance trust revenue statistics, on the
             other hand, include these important sources of funds. 

         (2) Intergovernmental transfers, taxes levied specifically to
             support insurance trusts, or other sources of general
             revenue to finance insurance trusts activities are
             classified as general revenue, not as insurance trust
             revenue.  Note that intergovernmental transfers
             representing contributions from other governments on behalf
             of their employees who are members of the system are
             treated as insurance trust revenue (see Section 6.45). 

         (3) The cost of administering an insurance trust system is
             classified as a general expenditure of the administering
             government.  It is recorded also under a special exhibit
             code for displaying insurance trust statistics. 
        
       Both regular and insurance trust exhibit statistics on revenue
       and expenditure exclude the purchase and sale of investments as
       well as the extension and recoupment of loans to members. 


       11.3 Types of Insurance Trust Systems 


       The Census Bureau recognizes four types of insurance trust
       systems, including an "other" category that encompasses three
       major Federal-only social insurance trusts. 


       11.31 Public Employee Retirement Systems 


       This category covers retirement systems sponsored by a recognized
       unit of government whose membership is comprised primarily of
       public employees compensated with public funds and which holds
       identifiable assets to finance retirement and associated
       benefits. 

       Excluded are "pay-as-you-go" retirement programs (i.e., direct
       payments to retired or disabled employees from appropriation of
       general funds), plans not defined as contributory, and payments
       to private trustee or insurance carrier who administer the
       investments and benefits.  Although it is a retirement system,
       the Federal Social Security program is classed as an "other"
       insurance trust because its membership is not limited to public
       employees.
        

       11.32 Unemployment Compensation Systems 


       This category refers to the Federal-state cooperative program for
       unemployment insurance which also covers the District of
       Columbia, the only local government member.  These data are
       obtained from the Employment and Training Administration of the
       U.S. Department of Labor.  The unemployment compensation system
       operates in a unique fashion unlike any other aspect of
       government finance.  How it works is described below1. 

       The financial transactions of the Federal-state and railroad
       unemployment insurance systems are made through the Unemployment
       Trust Fund.  All state and Federal unemployment tax receipts are
       deposited in the trust fund and invested in Federal Government
       securities.  If necessary, the Federal general fund advances
       monies to the trust fund. 

       State governments and the District of Columbia pay for
       unemployment benefits from this trust fund.  They also may
       receive repayable advances from the fund when their balances in
       the fund are insufficient to pay benefits. 

       State payroll taxes (i.e., contributions coded Y01) pay for all
       regular state government benefits.  During high periods of
       unemployment, extended benefits are paid also and are financed
       equally between state and federal payroll taxes.  Benefits to
       former Federal civilian employees, Postal Service workers, and
       ex-servicemembers are paid also by the state governments from the
       trust fund, which is reimbursed by the various Federal agencies.


       11.33 Workers' Compensation Systems 


       This category includes state government-administered plans for
       compulsory accident and injury insurance of workers (public or
       private) through the accumulation of assets in order to provide
       disability or death benefits related to an on-the-job injury or
       accident. 

       Note that the Federal Government workers' compensation program is
       not classified as an insurance trust system because it is
       financed directly from agency operating funds rather than through
       an insurance fund financed by contributions (i.e., it is a
       pay-as-you-go plan). 


       11.34 Other Insurance Trust Systems (including Federal-only ones) 


       This category includes any other Federal or state government-
       administered insurance trust system which meets the Bureau's
       definition of a social insurance trust. 

       For state governments, there were only six states with such
       systems in fiscal year 1990.  These included three disability
       programs, a medical disaster fund, an automobile liability
       insurance system, and a life insurance program. 

       For the Federal Government, this category includes social
       insurance programs unique to the U.S. Government, including the
       biggest insurance trust2: 

       - The Social Security and Medicare programs, also referred to as
         OASDHI (Old-Age Survivors', Disability, and Health Insurance
         program).  It actually consists of multiple insurance funds,
         including the Old-Age and Survivors Insurance Trust Fund
         (OASI), Disability Insurance Trust Fund (DI), Hospital
         Insurance Trust Fund (HI), and Supplementary Medical Insurance
         Trust Fund (SMI), The last two funds constitute the Federal
         Medicare program. 

       - Veterans' life insurance system which provides low-cost life
         insurance to eligible veterans of the armed services. 

       - Railroad retirement system which provides retirement-survivor
         benefits to railroad workers and their families.  The
         unemployment portion of this system is included with the
         unemployment compensation data. 

       Excluded from insurance trust data (and reported in the general
       government sector) are Federal insurance programs such as crop
       and farm mortgage insurance, investment guarantees, home mortgage
       insurance (e.g., FHA, TVA), and the like. 


       11.4 Insurance Trust Exhibit Codes 


       Insurance trust statistics have a two-tier classification scheme.
       The first tier consists of the regular categories used in
       reporting the finances of a government--that is, statistics on
       government revenue, expenditure, and cash and securities.  The
       second tier consists of special exhibit codes used only to
       present statistics on insurance trusts by themselves--i.e.,
       without regard to their effect on other areas. 

       These exhibit codes largely represent financial transactions that
       are intragovernmental or interfund transfers by the government
       administering the system.  For public employee retirement
       systems, they also include investments that fall outside the cash
       and security definition used in the regular finance survey. 

       Chart 11-A provides a complete listing of all codes related to
       insurance trust finances, including the exhibit codes described
       below. 

        
       11.41 Public Employee Retirement Exhibit Codes 


       Statistics on public employee retirement systems have more
       exhibit codes than any other insurance trust category, reflecting
       the greater complexity of their finances.  Some of these codes
       represent additional detail for a regular finance code (e.g.,
       cash and short-term deposits, code X21, is divided into three
       exhibit categories).  Other codes are used solely for data
       collection and are never published (although they do appear in
       the special retirement data file).  Additional codes reflect the
       retirement survey's broader definition of investments compared to
       the regular finance survey. 


                                                    Where Classified in
       Code              Description                 Regular Finances*
       ---- --------------------------------------- --------------------
       Revenue: 

       X04  Contribution from local government to
            system it administers..................         (X)

       X06  Contribution from state government to
            system it administers.  This item is
            the sum of two subcodes, Z99 and V87:

       Z99  State government contributions to own
            system on behalf of state employees....         (X)

       V87  State government contributions to own
            system on behalf of local employees....         (X)

       Z95  Private gifts, donations, and other               
            receipts...............................         (3)

       Z96  Gain on sale of investments............         X08

       Z98  Rentals from the state government to a
            state retirement system................         (X)

       X99  Federal Government Only--Interest on
            U.S. Securities held by Federal retire-
            ment systems...........................         (X)
 
       Expenditure:

       X14  Administration, investment fees, losses
            on sale of investments (also deducted
            from X08), and other costs not repre-
            senting benefits or withdrawals.  This
                                                    Where Classified in
       Code              Description                 Regular Finances*
       ---- --------------------------------------- --------------------
       Expenditure (continued): 

            exhibit code is the sum of three subcodes,
            Z91, Z93, and Z90:

       Z91  Loss on sale of investments............   Deducted from X08

       Z93  Administration, including investment
            fees...................................         E23

       Z90  Other..................................         (3)

       Cash, Securities, and Other Investments:

       Z81  Total cash, securities, and other
            investments.  Numeric total of all
            regular and exhibit codes..............         (X)

       Z88  Cash on hand and demand deposits.......         X21

       Z87  Time or savings deposits, including
            certificates of deposits...............         X21

       Z68  All other short-term investments,
            including securities in repurchase
            agreements (repo's), commercial and
            finance company paper and bankers
            acceptances, and miscellaneous money
            market funds...........................         X21

       Z89  Federal securities, including short-
            and long-term obligations of U.S.
            Treasury and Federal Financing Bank....         X30

       X33  Federal agency securities, including
            bonds and mortgage-backed (where appli-
            cable) issued by CCC, Export-Import
            Bank, FHA, GNMA, Postal Service, and
            TVA.  (Mortgages directly held by a
            retirement system are reported under
            code X42)..............................         X30

       Z67  Federally-sponsored agency securities,
            including bonds and mortgage-backed
            notes issued by FHLB, FHLMC, FNMA,
            Farm credit banks, and SLMA............         X40

       Z82  Total other investments is the sum of
            an exhibit subcodes (X46) and a regular
            finance code (X47):

       X46  Real property directly held by retire-
            ment system.  (Property held in invest-
            ment trusts and in pooled or partner-
            ship agreements is reported under code
            X47.)..................................         (X)

                                                    Where Classified in
       Code              Description                 Regular Finances*
       ---- --------------------------------------- --------------------
       Cash, Securities, and Other Investments (continued): 

       Z84  Investments held in trust by other
            agencies, such as funds administered by
            private agencies, guaranteed investment
            accounts, and system share of funds in
            governmental investment accounts.......         X44

       X35  Securities of state and local govern-
            ments including those of its parent
            government (other than for the Federal
            retirement systems)....................         X44

       Z83  Other securities, N.E.C., including
            shares held in mutual funds, foreign
            and international securities, condi-
            tional sales contracts, and direct
            loans to members.......................         X44

       Other Exhibit Codes:

       Z97  Amounts for transmittal to Federal
            Social Security System.  Collected to
            avoid misreporting elsewhere...........         (X)

       Z92  Amounts transmitted to Federal
            Social Security System.  Collected to
            avoid misreporting elsewhere...........         (X)

       Z77  Market value of corporate bonds (book
            value reported at X40).................         (X)

       Z78  Market value of corporate stock (book
            value reported at code X41)............         (X)

       * (X) means not reported in regular finance data.

       
       11.42 Unemployment Compensation Exhibit Codes


       The only exhibit code for unemployment compensation systems pertains
       to the Federal Government and reflects the fact that all its
       investments are in Federal securities whose interest payments
       represent interfund transfers.

                                                    Where Classified in
       Code              Description                 Regular Finances*
       ---- --------------------------------------- --------------------
       Revenue: 
 
       Y99  Federal Government Only--Interest on
            U.S. Securities held by Federal retire-
            ment systems...........................         (X)

       * (X) means not reported in regular finance data.


       11.43 Workers' Compensation Exhibit Codes


       Exhibit codes for workers' compensation system are limited to one
       each for revenue and expenditure.

                                                    Where Classified in
       Code              Description                 Regular Finances*
       ---- --------------------------------------- --------------------
       Revenue: 
 
       Y10  Contributions from state government to
            its own workers' compensation system...         (X)

       Expenditure:

       Y15  Administration, investment fees, losses
            on sale of investments (also deducted
            from Y12), and other costs not repre-
            senting benefits or withdrawals........         E23#

       * (X) means not reported in regular finance data.
       # Administrative costs only included.


       11.44 Other Insurance Trust Systems Exhibit Codes


       Exhibit codes for other state government insurance trust systems
       are limited to one each for revenue and expenditure.  In addition,
       each of the three Federal-only insurance trust systems has an
       exhibit code reflecting the fact that all its investments are
       in Federal securities whose interest payments represent interfund
       transfers.

                                                    Where Classified in
       Code              Description                 Regular Finances*
       ---- --------------------------------------- --------------------
       Revenue: 

       Y50  Contributions from state government to
            its own other insurance trust system...         (X)

       Y54  Administration, investment fees, losses
            on sale of investments (also deducted
            from Y52), and other costs not repre-
            senting benefits or withdrawals........         E23#

            Federal Government systems interest on
            U.S. securities held as investments:

       Y22  Social Security and Medicare...........         (X)

       Y32  Veterans' Life Insurance...............         (X)

       Y42  Railroad Retirement....................         (X)

       * (X) means not reported in regular finance data.
       # Administrative costs only included.
       11.5 Special Topics 


       Insurance trust finances are among the most complicated in the
       field, partly as a result of the large amount of intragovern-
       mental transactions as well as the sophisticated but complex
       investments in which they engage.  This section discusses some of
       the more complex topics and describes how they are treated for
       Census Bureau statistics. 


       11.51 Classifying Debt for Unemployment Compensation Funds 


       In rare cases, a government may issue debt to bolster its
       unemployment compensation (UC) system.  Typically, it raises the
       contribution rate it levies on employers to cover debt service.
       This situation is classified in the following manner: 

         - Revenue, Contributions (Code Y01): The government's
           unemployment compensation revenue consists of two parts: the
           "normal" payment to the UC fund and the amount needed to
           cover debt service (principal and interest).  The former is
           treated as an UC revenue (code Y01); the latter is classified
           under Miscellaneous General Revenue (code U99). 
          
         - Revenue, Federal Advances and Contributions (Code Y04): One
           possible reason for such debt is to repay the Federal
           Government for advancing funds when the government's UC
           account was insufficient to pay benefits.  As described in
           Chapter Seven, repayment of Federal advances is deducted from
           code Y04, leading to the possibility of a negative value for
           this revenue code.  Note that, in a situation requiring a
           government to issue debt to repay the advances, it is
           possible that the repayment is so large that not only is code
           Y04 negative, but so is total unemployment compensation
           revenue. 

         - Debt Retired, Issued, and Outstanding: This debt is
           classified in the "all other general debt" categories.  Note
           that the transfer of the proceeds to the insurance trust fund
           would be an intragovernmental transfer.  (Expenditures from
           it will eventually be reported as an insurance trust outlay.) 

         - Interest on Debt: Interest on the debt outstanding is
           reported under Interest on General Debt, code I89. 


       11.52 Loans to Parent Government by Insurance Trust Systems 


       Because of their large amounts of cash and security holdings,
       insurance trust systems (especially public employee retirement
       ones) sometimes help out their parent government during times of
       fiscal distress.  How these financial transactions are treated
       depends on the situation involved. 

       The insurance trust system may help out its parent government by
       purchasing its regular debt instruments; these are treated the
       same as other debt and investment transactions.  That is: 

         o It is not reported as either revenue of the parent government
           or as expenditure of the insurance trust. 

         o It is reported under debt statistics of the parent government
           (debt issued and outstanding) and under cash and security
           holdings data of the insurance trust. 
          
         o Interest payments on the debt is reported as an interest
           expenditure of the parent government (generally, code I89)
           and as earnings on investment of the insurance trust.  No
           effort is made to exclude this transaction as an interfund
           transfer. 

       The insurance trust system may loan money directly to the parent
       government with a special note being involved.  In these
       situations, the loan is not treated as debt of the parent
       government nor as a cash and security holding of the parent
       government.  It is not reported as an insurance trust
       expenditure.  The purpose of this treatment is to avoid
       duplication. 
  

       --------------------------- 
       1 Based largely on information in the appendix to the Budget of
         the United States.  References to state governments in this
         description also refer to the District of Columbia.

       2 The Federal Government also administers its own public employee
         retirement systems and is a member of the Federal-state
         cooperative unemployment compensation program.

       3 Data reported in these categories usually are transferred to
         other, more applicable insurance trust codes.

         

              CHAPTER 12.  LIQUOR STORES AND LOTTERIES EXHIBITS 


       Contents and Abstract: 

       12.1 State Liquor Stores Exhibit Statistics 

       12.2 Lotteries Exhibit Statistics 
        12.21 How Lotteries are Treated in Regular Finance Statistics 


       Certain financial activities of governments, especially
       commercial-type endeavors, do not fit readily into the Census
       Bureau's regular financial classification scheme.  To provide
       additional information on these activities, the Bureau has
       created exhibit codes. 

       At present, these exhibit categories cover two areas: state
       liquor stores and government-operated lotteries.  For many years,
       the Bureau also collected exhibit data on utilities, but these
       were discontinued because of the growing burden required to
       collect them. 


       12.1 State Liquor Stores Exhibit Statistics 


       The exhibit categories for state government operated liquor
       stores fall into two groups.  One provides a type of net income
       statement while the other shows the overall contribution of
       liquor stores, taxes, and liquor law enforcement activities on
       the government.  Although local governments in a few states
       operate liquor stores, no exhibit data are collected for them. 


        Code                      Description 
       ----- ---------------------------------------------------------- 
       Liquor Store Income and Expense Statistics:

        Z41  Net Sales of Goods.  Amounts received from sales of liquor
             and associated services or products.  Excludes any amounts
             for taxes, sales discounts, customer refunds, and other
             offsets to gross receipts from sales. 

        Z42  Cost of Goods Sold.  Cost to the activity (net of any
             purchase discounts and other offsets to purchase price) of
             goods sold to produce the receipts from sales reported
             under code Z41 above. 

        ---  Gross Profit on Sales.  A derived statistic representing
             the profit on the sale of liquor before taking into account
             operating costs--i.e., Net Sales of Goods less Cost of
             Goods Sold (Z41 - Z42). 

        Z43  Operating Expenses.  Expenditures applicable to operation
             and maintenance of liquor stores, including administration,
             advertising, purchase, handling, storage, and sale of
             merchandise (other than cost of goods sold), and other
             related costs of the liquor stores system.  Excludes
             noncash outlays such as deprecation as well as licensing
        Code                      Description 
       ----- ---------------------------------------------------------- 
       Liquor Store Income and Expense Statistics (continued):

             and law enforcement activities undertaken by the liquor
             store system. 

        ---  Net Operating Revenue.  A derived statistic representing
             the net profit before taking into account other revenues
             and costs--i.e., Gross Profit on Sales less Operating
             Expenses (Z41 - Z42 - Z43). 

        Z44  Other Income.  Nonoperating income, i.e., income from
             nonoperating properties of the system and sources other
             than sales, excluding any receipts from sales taxes,
             licenses, and permits that may be recorded by the system as
             "other income." 

        Z45  Nonoperating Expenses.  Any costs of the system for
             interest and for current costs not falling within Operating
             Expenses above (code Z43), excluding any licensing and
             enforcement costs that may be recorded by the system as
             "nonoperating expense." 

        ---  Net Income.  A derived statistic representing the final
             profit of the liquor store system--i.e., Net Operating
             Revenue plus Other Income less Nonoperating Expenses (Z41 -
             - Z42 - Z43 + Z44 - Z45).  Note that this figure may not
             agree with that reported by the liquor store system's own
             financial report, which may calculate its income on another
             basis. 

       Liquor Store Contributions to General Funds: 

        Z46  Transfers to General Fund (Gross).  Total amount actually
             turned over to general government funds during the fiscal
             year, as shown in the system accounts (as opposed to the
             above calculated amounts), including any funds for
             distribution to local governments.  Also includes any
             amounts derived from tax revenue collected by the system
             that appear in income accounts of the liquor system. 

        Z47  Expenditure for Licensing and Law Enforcement.  Any amounts
             recorded in the liquor system accounts as expense for
             licensing activities undertaken for the state government
             and enforcement of state liquor laws and regulations.  Such
             amounts are excluded from figures reported under codes Z43
             and Z45 in the income and expense statistics above and
             classified under general expenditure categories. 

        Z48  Receipts from Sales Taxes, Licenses, and Permits.  Any
             amounts received from alcoholic beverage sales and license
             taxes (including consumer permits to purchase liquor) that
             are included in the income accounts of the alcoholic
             beverage monopoly system.  Such amounts are excluded from
             figures compiled for the income and expense statistics
             above and classified under general revenue categories. 

        ---  Net Contributions to General Funds.  A derived statistic
             representing the net effect of the liquor control system on
        Code                      Description 
       ----- ---------------------------------------------------------- 
       Liquor Store Contributions to General Funds (continued): 

             the government's overall finances--i.e., Transfers to
             General Fund (Gross) plus Expenditure for Licensing and Law
             Enforcement minus Receipts from Sales Taxes, Licenses, and
             Permits (Z46 + Z47 - Z48). 

        
       12.2 Lotteries Exhibit Statistics 


       Unlike liquor stores, lottery operations do not constitute a
       distinct sector of government; rather, they are treated as a
       general government activity.  The exhibit codes below apply to
       state governments and the District of Columbia, the only local
       government operating a lottery at present. 


        Code                      Description 
        ---- ---------------------------------------------------------- 
        Z51  Total Ticket Sales.  Gross amounts received from the sale
             of lottery tickets or games, before deduction for cost of
             lottery tickets and prizes.  Excludes commissions allowed
             to merchants for selling the tickets or games. 

        Z52  Prizes Awarded.  Total value of prizes awarded during the
             fiscal year, whether actually paid out or incurred.
             Includes "instant winners," lotto jackpots to be paid as
             annuities, funds transferred to prize reserves, and the
             like. 

        Z53  Administrative Expense.  The cost of administering the
             lottery, except for prizes.  Includes salaries of officials
             as well as advertising, supplies, and the like.  An
             identical amount is reported as an expenditure under
             Financial Administration (code -23). 

        Z54  Proceeds Available.  The net funds available after
             deducting the costs of prizes and administration (Z51 - Z52
             - Z53).  Note that this amount is not the same as that
             classified as Net Lottery Revenue (code U95); the latter
             represents the amount left over after deducting prizes only
             (Z51 - Z52). 


       12.21 How Lotteries are Treated in Regular Finance Statistics 


       Unlike utility and other commercial-type activities of state and
       local governments (which are reported on a gross basis without
       deduction for the costs of providing them), lottery operations
       are included in the regular finance data on a net basis, as
       follows: 

       Net lottery revenues are included in the regular finance
       statistics as a miscellaneous general revenue (code U95).  This
       item consists of Total Ticket Sales (exhibit code Z51) minus the
       cost of Prizes Awarded (code Z52).  It differs from Proceeds
       Available (code Z54) by the amount for Administrative Expense
       (code Z53). 

       The cost of administering the lottery is reported under Financial
       Administration (code -23) in the regular finance statistics.
       Other expenditures from net lottery proceeds available are
       reported in whatever function spends them--education, general
       local government support, highways, etc.  Since the Bureau's
       classification scheme does not relate expenditures to their
       source of funding, there is no way to determine how net lottery
       proceeds were disposed. 

       The cost of prizes is not reported as an expenditure anywhere in
       regular finance statistics.