Government Corporations

Government corporations are federally chartered entities created to serve a public function of a predominantly business nature. As used in this fact sheet, a "proposed government corporation" meets one of the following criteria: (1) it was contained in legislation introduced in Congress, (2) it was proposed in executive agency reorganizations, or (3) it was recommended in National Academy of Public Administration studies commissioned by federal agencies. This fact sheet identifies proposals to create government corporations between November 1993 and December 1994. GAO also discusses the Community Development Financial Institutions Fund--a new government corporation created by the Riegle Community Development and Regulatory Improvement Act of 1994.

GAO found that: (1) BPC would assume the Bonneville Power Administration's operations, NPRC would manage and operate national petroleum reserves, USATS would operate the air traffic control system, FHA would provide mortgage insurance, the Presidio Trust would operate the Presidio, NIDC would promote public-private partnership investments in economic projects, and NIIC would provide insurance and reinsurance for certain infrastructure projects; (2) some proposals are still under development while others have yet to pass Congress; (3) corporation sponsors include cabinet officials, representatives, and senators; (4) the corporations' management structures include a single administrator reporting to the relevant cabinet secretary or a board of directors; (5) corporate funding would derive from customers or users, U.S. Treasury or private-sector borrowing authority, and appropriations; (6) in general, the corporations would not be included in the federal budget; (7) staffing for some corporations has not been developed, but some current federal employees would transfer to the new corporations; (8) the corporations would be exempt from various procurement, personnel, and other laws and regulations, but they would be subject to certain modified provisions; (9) Congress has established CDFIF to promote economic revitalization and community development through community development financial institutions; and (10) CDFIF has an administrator and 6 staff, is funded by appropriations, and is exempt from certain laws and regulations.