Ways to think about user fees for federal information products

Abstract

Abstract With budget cuts looming, Federal agencies are revisiting user fees for information products. The Paperwork Reduction Act of 1995 provides for user fees no higher than the cost of information dissemination. Federal agencies are enjoined from making a profit on their information products and permitted only to recover costs. The real question is how much value agencies should add to their information strictly for the public's use. Practical considerations such as the administrative costs of fees and legal authority to receive revenues condition an agency's decision to begin user fees. Various factors such as allowable costs and differential pricing must be considered in computing users' fees. The author suggests an action strategy for agencies contemplating information user fees and concludes that coming budget cuts will lead to increased employment of user fees by Federal agencies.