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Statements of Administrative Policy (SAPs), Fiscal Year 1995 [Binder] [4]
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Statements of Administrative Policy (SAPs), Fiscal Year 1995 [Binder] [4]
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FOIA Number: 2008-1524-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Office of Science and Technology Policy
Series/Staff Member:
Timothy Newell
Subseries:
OA/ID Number:
10829
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Folder Title:
Statements of Administration Policy (SAPs), Fiscal Year 1995 [Binder] [3]
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66
4
5
3
F
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 27, 1995
(House Rules)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES,
EDUCATION, AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1996
(Sponsors: Livingston (R), Louisiana; Porter (R), Illinois)
This Statement of Administration Policy provides the
Administration's views on the Labor, Health and Human Services,
Education, and Related Agencies Appropriations Bill, FY 1996, as
reported by the House Appropriations Committee.
The Administration is committed to balancing the Federal
budget by FY 2005. In FY 1996 alone, the President's budget
proposes to reduce discretionary spending by cutting $5 billion
in outlays from the FY 1995 level. However, the Administration
does not share the priorities reflected in the Committee's mark
or support the level of funding adopted in the Committee's 602 (b)
allocations. The Administration must evaluate each bill both in
terms of funding levels provided and the share of total resources
available for remaining priorities. The Committee bill is over
$12 billion below the President's request.
The President strongly believes that we must invest in our
country's future by supporting education and training.
Investments in these areas will promote long-term economic growth
and higher living standards. The Committee bill would
imprudently cut valuable, proven programs that educate our
Nation's children, aid the disadvantaged, invest in working
people, and protect our Nation's health and safety. Many of the
programs funded in this bill are aimed at protecting and aiding
the most vulnerable in our society. Reductions proposed by the
Committee would have a particularly harmful effect on our
Nation's children, our youth, and the disadvantaged by cutting
funding for numerous education programs, training programs, the
Corporation for National and Community Service, and mental health
and substance abuse prevention and treatment demonstration
grants.
For these reasons, discussed more fully below, the President
would veto the bill if it were presented to him in its current
form.
Cutting Programs for Pre-School Children
The Administration strongly opposes the Committee's
reduction in the Head Start program. This program plays a vital
role in preparing disadvantaged young children for school; its
expansion should be continued, not reversed. The President would
add $400 million and 32,000 new slots to the Head Start program
in FY 1996. The Committee, in contrast, would reduce funding by
$137 million below the FY 1995 level ($537 million below the
President's request). If program quality were to be maintained
at such a reduced level, the Committee action would cut between
45,000 and 50,000 children from the program. The Administration
strongly urges the House to provide FY 1996 funding at the level
requested by the President.
Cutting Programs for Education and Training
The Administration is committed to ensuring adequate funding
for key education programs that help average Americans build a
better future for themselves and their families. More than ever
before in our Nation's history, what you earn depends on what you
learn. Yet, the Committee would reduce the President's request
for education programs by $5 billion. The Committee's
recommended overall funding level is $4 billion, or 16 percent,
below the FY 1995 enacted level. The President is committed to
investing in our children's education. The Committee has
systematically targeted those key programs designed to serve our
Nation's youth for the most debilitating cuts. The Committee
would reduce -- by 30 percent below the President's request --
the Administration's highest priority programs, programs that
focus on improving student achievement in our Nation's elementary
and secondary schools.
These draconian reductions would be achieved through the
termination of critical education programs. The Committee's ill-
advised decision to terminate funding for Goals 2000 would set
back State-based efforts to improve learning for all students and
to build a more competitive workforce. Drastic reductions in
other programs, including Education for the Disadvantaged and
Safe and Drug Free Schools, are unacceptable. These reductions
are short-sighted and would have a devastating effect on our
Nation's future.
The Administration strongly opposes the Committee's
elimination of the Summer Youth Employment and Training Program.
The Committee's action would eliminate the opportunity for
615,000 disadvantaged youth per year to acquire valuable job
experience and learn essential job skills. As the President
noted when he signed H.R. 1944, the Administration continues to
support the program and will work with Congress in the FY 1996
appropriations process to ensure that the program for the summer
of 1996 is funded.
2
The Committee bill would drastically reduce the President's
request for the Department of Labor's youth job training programs
and the bipartisan school-to-work initiative -- by 46 percent, or
$1.3 billion. At a time when it is more evident than ever that
America's youth are not receiving enough opportunities to acquire
the job skills necessary to succeed in today's economy, these
reductions are unacceptable.
At a time of increased workforce anxiety and major labor
market dislocations, the Committee bill would impose unacceptably
large reductions in resources to retrain dislocated workers and
low-income adults and help them find jobs through One-Stop Career
Centers. The bill would reduce funding for dislocated workers
and disadvantaged adults by $545 million, or 25 percent, below
the FY 1995 comparable level. The bill would cut $1.4 billion,
or 46 percent, from the President's request and would deny
training and reemployment services to about 506,100 dislocated
workers and 84,000 low-income adults. While corporate and
military downsizing continues to displace hard-working Americans,
shrinking these critical services is unconscionable.
The Administration strongly opposes the House Committee's
reduction of $94 million for the Corporation for National and
Community Service (CNCS) programs funded in this appropriations
bill. The Committee would cut the Volunteers in Service to
America program (VISTA) by 57 percent, reducing the number of
VISTA volunteers working to alleviate poverty in low-income
communities nationwide to 2,000 volunteers, less than half the
requested level. The Committee level also would deny nearly
170,000 older Americans the opportunity to help the homebound
elderly, disabled children, and others in their communities. The
Administration urges the House to provide the funding level
requested in the President's budget.
Cutting Programs That Protect Our Nation's Health
The Administration opposes the provision in the Committee
bill that would prohibit funding of the Surgeon General position.
This micromanagement of the Executive Branch would severely
curtail the leadership that the public has traditionally looked
to for guidance on personal and societal health issues. The
Administration urges the House to remove this provision.
The Administration is concerned that the Committee mark for
programs funded under the Ryan White CARE Act is $67 million less
than the $723 million request. The funding level proposed by the
President represents the minimum amount necessary to maintain
funding for the 42 cities already receiving Ryan White
assistance; to fund the seven to ten new cities expected to
qualify for Ryan White assistance in FY 1996; and to provide
sufficient funding to keep up with increasing AIDS caseloads in
States, cities, and local clinics currently receiving Ryan-White
grants.
3
The Committee bill does not appropriate a specific amount
for AIDS research through a single appropriation for the National
Institutes of Health's (NIH's) Office of AIDS Research as
requested by the Director of NIH in the President's budget.
Unlike research on other diseases, HIV research is spread among
all of the institutes and centers of NIH, rather than being
focused essentially in one institute. By failing to provide a
single appropriation, the Congress makes less explicit its
intentions regarding funding to fight the disease that is now the
leading cause of death for people aged 25 to 44. The current
single appropriation helps target NIH research dollars
effectively, minimizing duplication and inefficiencies across the
21 institutes and centers that carry out HIV/AIDS research.
Cutting Programs for Individuals with Disabilities
The Administration is very concerned about the significant
reductions made by the Committee in programs for individuals with
disabilities. While allowing funding for direct services to
remain essentially intact, the Committee bill would
systematically reduce or eliminate funds available for research,
demonstration, training, and technical assistance programs
focusing on individuals with disabilities and would phase out the
Federal appropriation for the National Council on Disability.
These programs provide essential support for the State direct
service programs and help the Administration and the Congress
understand and respond to disability issues.
Family Planning and Abortion
The President believes that abortion should be safe, legal,
and rare. The Committee bill effectively ends the Family
Planning Program that Republicans and Democrats have long agreed
is needed to help prevent the need for abortion. The
Administration opposes this action.
The Administration strongly opposes the provision of the
Committee bill that would change existing law by allowing States
to deny Medicaid funding for abortions for victims of rape and
incest. The provision that the Committee has approved would
prevent poor women from having access to abortion services even
in situations where they are victims of rape or incest. This
change in the law would unfairly target the most vulnerable poor
women and their families. The Administration strongly opposes
any effort to curtail the ability of poor women to choose
abortion in cases of rape or incest and urges the House to delete
this provision.
Striker Replacement
The Administration strongly opposes a provision of the
Committee bill that would prohibit the Executive Branch from
using FY 1996 funds to implement, administer, or enforce any
Executive Order or other rule or order that prohibits Federal
4
contracts with companies that hire permanent replacements for
striking employees. This provision would impinge upon the
Executive Branch's ability to ensure a stable supply of quality
goods and services for the government's programs.
Prohibition on Political Advocacy
The Committee has included a provision, "Prohibition on the
Use of Federal Funds for Political Advocacy," that presents a
broad attack upon the exercise of fundamental rights protected by
the First Amendment. Congress may, under some circumstances,
restrict the uses to which Federal monies are put; however,
insofar as this provision forecloses the exercise of protected
rights with other than Federal funds, it would be deemed a
penalty for that exercise and thus would be unconstitutional. It
would limit the ability of organizations to participate in
administrative or judicial proceedings and appearances before
State and local entities. In addition, it is now widely agreed
that much is to be gained when private organizations and
charities work in partnership with the government to implement
social policies. The House is urged to delete this provision.
Additional Administration concerns with the bill as reported
by the Committee are contained in the attachment.
Attachment
5
Attachment
(House Rules)
ADDITIONAL CONCERNS
DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES,
EDUCATION, AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1996
(AS REPORTED BY THE HOUSE FULL COMMITTEE)
The Administration looks forward to working with the
Congress to address the following concerns.
Department of Education
Goals 2000. The Administration strongly opposes the
Committee's proposed termination of Goals 2000. The
President has requested $750 million in FY 1996 for
Goals 2000, which would essentially double the size of
the program. At this funding level, Goals 2000 would
raise academic standards in 48 states and 16,000
schools. The Committee would eliminate this program
entirely. Raising academic standards provides a
necessary framework for improving all aspects of
education.
Title I -- Education for the Disadvantaged. The
Administration opposes the Committee mark, which would
reduce funding for the Title I Grants to Local
Educational Agencies Program by $1.1 billion, cutting
as many as 1.1 million children from the program. The
President has requested $7 billion for this program, an
increase over the FY 1995 enacted level of $302
million. This funding level would assist States in
raising the academic achievement of 6.4 million
disadvantaged children.
Safe and Drug-Free Schools and Communities. The
Administration opposes the Committee mark, which would
reduce this program by 60 percent -- to $200 million.
This action would deprive over 23 million students
services in FY 1996 alone. The Committee proposal is a
57-percent reduction from the FY 1995 post-rescission
funding level. The President has requested $500
million in FY 1996 for this program to combat violence
and drug use in 97 percent of school districts (over
14,000) serving 39 million students. The
Administration also opposes the Committee's decision to
strike funding for a key crime prevention program, the
Family and Community Endeavor Schools program.
School-to-Work (Departments of Labor and Education).
The Administration opposes the Committee mark, which
would reduce funding for School-to-Work to $190
million, or less than half of the Administration's
request. The President has requested $400 million
(split between Labor and Education), a 60 percent
increase over the FY 1995 comparable level, to finance
a third wave of temporary, seed capital grants. This
initiative supports States building school-to-work
systems with one-year planning and five-year
implementation grants. Once these systems are in
place, the program will sunset. The Committee mark
would seriously hamper the efforts of 28 States to
complete their reforms started in FYs 1994 and 1995.
Twenty-two States would be denied the chance to
implement their reform plans to raise student skills.
Vocational and Adult Education. The President has
requested $1.6 billion for the vocational education,
adult education, and family literacy programs. The
Administration opposes the Committee mark, which would
reduce funding for these programs to $1.2 billion. A
reduction of $325 million from the FY 1995 enacted
level would adversely affect over 3.1 million students
nationally and would eliminate adult education services
to over 125,000 adults who need to improve their basic
and literacy skills in order to succeed in their roles
as workers, citizens, and parents.
Federal Direct Student Loan Program. The Student Loan
Reform Act (SLRA) of 1993 provided $550 million in
mandatory funds in FY 1996 for the administration of
the direct student loan program and the transition from
the guaranteed student loan program to direct loans.
The Administration opposes the Committee mark, which
would reduce this funding to $320 million -- an amount
insufficient to administer the direct loan program
under the Committee's direction that $160 million of
those funds must be available for payments to guaranty
agencies in the guaranteed loan program. This action
would stop the growth of cost-effective, efficient
direct lending in order to keep providing unnecessary
payments to banks, State agencies, and secondary
markets.
Student Financial Assistance Programs. The President
has proposed to increase the Pell grant maximum award
to $2,620, which is $280 over the FY 1995 level of
$2,340. The Administration is concerned that the
Committee has increased the maximum by only $100, to
$2,440. Furthermore, the Administration is deeply
concerned that the Committee's minimum award proposal
2
would eliminate approximately 300, 000 students from the
program who would receive awards of between $400 and
$600 under the President's proposal.
Educational Technology. The President has requested
$122 million in FY 1996 for four educational technology
programs. The Administration opposes the Committee's
action that would provide only $25 million for this
program, funding only the K-12 Technology Learning
Challenge program. This funding level would
significantly limit efforts to create new private-
public partnerships to raise student achievement
through advanced technology. The elimination of three
technology programs would reduce learning opportunities
for educationally and economically disadvantaged
students.
Eisenhower Professional Development and Technical
Assistance Centers. The President has requested $785
million in FY 1996 to train teachers to help students
achieve high academic standards in 90 percent of all
school districts. The Administration opposes the
Committee's action that would eliminate this program
and, instead, appropriate a reduced funding level of
$500 million in anticipation of the passage of a block
grant proposal currently under consideration in the
Economic and Educational Opportunities Committee, with
unclear performance standards and accountability
structures. In addition, the Administration opposes
the elimination of funds for the comprehensive
technical assistance centers for improving elementary
and secondary education programs. The President has
requested $55 million in FY 1996 for 15 consolidated
centers that will provide training and assistance to
States, school districts, and schools in upgrading all
aspects of education.
Education for Children with Disabilities. The
President has requested $254 million, the FY 1995
enacted level, to support several research,
demonstration, training, and technical assistance
activities that assist State efforts to serve children
with disabilities in the least restrictive educational
environments. The Administration opposes the
Committee's action that would reduce funding for these
programs by $162 million, or 64 percent, by eliminating
such programs as grants for early childhood education,
innovation and development grants, and training
personnel for the education of children with
disabilities.
3
Bilingual and Immigrant Education. The President has
requested $200 million for Bilingual Education and $100
million for Immigrant Education. The Administration
opposes the Committee mark, which would reduce funding
for Bilingual Education by almost 75 percent, to $53
million, and reduce the amount available for Immigrant
Education by 50 percent, to $50 million. The combined
Committee funding of $103 million is a 50-percent
reduction from the FY 1995 enacted level. This would
severely reduce instructional services for over 700,000
limited-English-speaking children and adults. School
districts that are heavily impacted by recently arrived
immigrant students would also be adversely affected.
Howard University. The Administration opposes the
Committee mark of $170 million, which is $26 million,
or 13 percent, below the Administration's request.
Such a large decrease in one year would cause immediate
and major layoffs of approximately 500 faculty and
administrative staff. Since the university has already
taken decisive action during FYs 1994, 1995 to balance
its budget by eliminating nearly 400 staff positions,
further reductions in staff levels would be difficult
to achieve without harming the overall quality of
undergraduate and graduate education. The
Administration is also concerned that the bill would
eliminate earmarks for strengthening endowment and
research efforts, a counterproductive move in light of
a mutual goal to help Howard University plan for future
financial independence.
Advisory Councils. The Administration is concerned that
the Committee bill would prohibit the funding of
certain advisory boards, including the President's
Board of Advisors on Historically Black Colleges and
Universities, the President's Advisory Commission on
Educational Excellence for Hispanic Americans, the
National Board of the Fund for the Improvement of
Postsecondary Education, and the Historically Black
Colleges and Universities Capital Financing Board.
Gender Discrimination. The Administration objects to
the unprecedented provision of the Committee bill that
would halt the Department of Education's enforcement of
Title IX's prohibition on gender discrimination in
intercollegiate athletics until the Department's Office
for Civil Rights issues certain guidance in that area.
The Department has already committed to issuing updated
policy guidance in this area by clarifying existing
guidance, describing what steps colleges and
4
universities should take to comply with Title IX. That
guidance will be issued by the beginning of the fall
semester. The provision in the bill is unwarranted
micromanagement and should be deleted.
Staffing Levels. The Administration opposes the
provision in Section 305 of the bill that would
prohibit the Department from hiring staff "if such
hiring would increase on-board employment.' The
Federal Workforce Restructuring Act (FWRA) already
imposes limits on Federal employment. The President
must have the authority to manage within those strict
limits. As long as the FWRA limits are met, agencies
should have the authority and flexibility to manage
employment to best meet program needs within
appropriated funding levels. An on-board employment
ceiling is a particularly arbitrary constraint because
it ignores seasonal employment fluctuations and
full-time/part-time employment mixes. It was for this
reason that the Federal Employees Part-Time Career
Employment Act of 1978 required the use of the
full-time equivalent employment measure in the
management of Federal employment.
Department of Labor
Enforcing Worker Protection Laws and Improving the
Workplace. The Administration opposes the Committee's
reductions to agencies and programs that, among other
things, strive to ensure that workers have safe and
healthy working environments, protect their pensions,
and meet the challenges of the global economy.
Overall, the funding provided by the bill is
approximately 20 percent below the President's request
for these important activities. The Committee level
includes major reductions to the Occupational Safety
and Health Administration's enforcement activity (cut
by one-third), the Mine Safety and Health
Administration, and to programs that enforce wage and
hour laws and promote affirmative action among Federal
contractors. The Committee also proposes virtual
elimination of the Bureau of International Labor
Affairs, which helps our Nation compete in the global
marketplace, and the Office of the American Workplace,
which helps companies evolve into high performance
workplaces. The Administration urges the House to
restore funding for these programs.
One-Stop Career Centers. The Administration is
concerned with the Committee's funding level of $100
million -- half the President's request -- for this
important, system-building investment. At the
5
Committee's level, only two or three States would
receive new implementation grants in FY 1996, and the
second- and third- year funding levels for the 14-15
States that received awards in FY 1994 and FY 1995
would be reduced. Production of enhanced labor market
information products and services that will help people
find jobs more efficiently would be postponed. In
addition, the $89 million cut from the FY 1995 level in
the Employment Service would undermine the States' One-
Stop system-building efforts.
Job Corps. The Committee's mark for Job Corps is $107
million below the President's request. The
Administration urges full funding of Job Corps.
Without this funding, the long-term expansion plans
would be severely undercut and several existing centers
would likely have to be closed. The Committee's mark
would mean that thousands fewer disadvantaged youth
would have the opportunity to learn necessary basic
education and job skills than would be the case under
the President's request.
Unemployment Insurance Administration. The
Administration is concerned that the Committee freezes
the program at the FY 1995 level, cutting $156 million
from the President's request. This level of funding
could result in delays in benefit payments as well as
increased errors in benefit payments and tax
collections, adversely affecting trust fund balances.
States might also lay off staff or close local offices
in an effort to cut costs.
Bureau of Labor Statistics. The Administration opposes
the Committee's mark, which is a $29 million, or eight-
percent reduction to the President's request. The
reduction would undercut the Bureau's ongoing efforts
to improve its existing data series and would certainly
require program reductions in several data series, such
as the SIC and SOC revision, Emerging Labor Market
Data, or Local Area Wage Surveys. Given the bipartisan
support for improved statistical measures of the
Nation's economy, the House is urged to fund the
Bureau's activities fully.
OSHA Regulations. The Committee bill would prevent
OSHA from developing or issuing any proposed or final
ergonomics protection standards or guidelines and would
require OSHA to change its fall protection standard.
The Administration objects to congressional
micromanagement of workplace safety standards. The
fall protection standard was developed after careful
consideration of scientific evidence. OSHA should not
6
be prevented from continuing its work related to
issuing a proposed rule to address work-related
musculoskeletal injuries, which have increased an
estimated seven times in the last ten years. The bill
would also prohibit recordkeeping and reporting
requirements directly related to ergonomic-related
injuries or illnesses. The Administration objects to
Congressional interference in the collection of data,
treating one type of illness differently than others.
Child Labor Regulations. The Committee has included
language that restricts the Department of Labor's
efforts to protect the Nation's working minors. The
language would limit the ability of the Department to
implement and enforce both Hazardous Orders #12 and #2
on minor's use of paper balers and motor vehicles,
respectively. The Administration urges the House to
delete this provision.
Davis-Bacon Helpers. The Committee did not include
language requested by the Administration that would
prohibit the Department of Labor from implementing the
Davis-Bacon helper regulation. The Administration
urges the House to restore this provision to allow the
Department time to rework the helper regulation to
insure the continuation of viable apprenticeship
programs on Federal construction projects.
Economically Targeted Investments. The Administration
objects to language that the Committee has included
that would prevent the Department of Labor from
promoting economically targeted investments or even
providing pension plans with information about such
investment alternatives. Economically targeted
investments provide collateral benefits to communities
without sacrificing either investment safety or
financial return for pension plan participants. This
language is objectionable because it places an
unwarranted restriction on the Department's
responsibility to interpret and enforce pension law.
Department of Health and Human Services
AIDS Education and Training Centers (ETCs). The
Administration is concerned that the Committee
eliminates funding for AIDS Education and Training
Centers, which help train tens of thousands of health
professionals about constantly evolving HIV care and
treatment procedures. The President's budget includes
$16 million for AIDS ETCs, the same level as in FY
1995.
7
Substance Abuse and Mental Health Services
Administration (SAMHSA). The Administration is very
concerned about the Committee's $456 million (25-
percent) reduction to the President's request for total
SAMHSA funding. The Administration notes that the
overall funding for SAMHSA's demonstration and training
grants is reduced from $566 million to $202 million, a
$364 million, or 64 percent, decrease from the FY 1996
President's request. This reduction would seriously
undermine the National Drug Control Strategy and
jeopardize substance abuse treatment and prevention and
mental health services for tens of thousands of
pregnant women, high risk youths, and other under-
served Americans. It would also erode SAMHSA's ability
to improve service delivery, ensure quality standards,
and educate consumers and providers of services.
Reductions from the President's request in substance
abuse treatment funding alone would result in 40,000
fewer persons being treated.
SAMHSA - Homeless Services. The Administration is
concerned about the Committee's elimination of the
Projects for Assistance in Transition From Homelessness
(PATH) formula grant program. These grants provide
drug treatment and mental health services to the
homeless, who are particularly vulnerable to substance
abuse and mental health problems. An estimated one-
third of the people living on America's streets and in
shelters have severe mental illness, and another one-
third suffer from substance abuse problems. Over
127,000 individuals would no longer receive services if
this program were eliminated.
Health Immigration Initiative. The Committee has
failed to fund the President's immigration initiative
for Medicaid, withholding Federal financial assistance
to the seven States most heavily affected by illegal
immigration. The President's proposal would provide
$150 million in FY 1996 to help States pay for their
share of the Medicaid costs of providing emergency
medical services for undocumented aliens.
Crime Prevention. The Committee would eliminate
practically all of the Administration for Families and
Children's (ACF's) violent crime reduction funding,
providing only $800 thousand of the President's
requested $105 million. The violent crime prevention
programs are needed to help complement law enforcement
activities with crime prevention. Programs approved in
last year's Crime Bill that would be eliminated by the
Committee are prevention grants for runaway and
homeless street youth at risk of sexual abuse, grants
8
for battered women's shelters, and a community economic
investment partnership fund to stimulate business
opportunities in low-income areas. The Administration
also opposes the Committee's decision to strike funding
for the Community Schools program.
Administration on Aging (AOA). The Committee would
eliminate seven of 12 AOA programs and reduce the
funding for all but one. Total funding would be
reduced by $119 million (or 13 percent) below the
President's request of $897 million. Funding for AOA's
two primary nutrition programs, which includes funding
for Meals on Wheels, which provide meals for over five
million older Americans, was cut back by $23 million,
or 5 percent. At the Committee's funding level, nearly
12 million fewer meals would be reimbursed. In
addition, funding for programs that provide supportive
services for the elderly, many of whom are at risk of
being institutionalized, is reduced by over $15
million, and similar funding for Native Americans is
reduced by over $2 million.
Low Income Home Energy Assistance Program (LIHEAP).
The Committee would eliminate LIHEAP entirely in FY
1996, ending heating and cooling assistance to between
five and six million low-income families.
Approximately 30 percent of the households receiving
LIHEAP benefits have at least one elderly member and at
least 20 percent have one disabled member. The
President's request would maintain LIHEAP at the FY
1995 level and provide resources for LIHEAP's emergency
fund in FY 1996 using the existing FY 1995 emergency
fund balance.
Child Care and Development Block Grant (CCDBG). The
Committee has not funded the President's request for a
$114 million increase above the FY 1995 level in the
Child Care and Development Block Grant. The CCDBG
provides child care assistance to low-income families
who need child care to remain in the workforce and off
welfare. The Committee funds the program at the FY
1995 level and eliminates two programs, totaling $14
million, that are proposed for consolidation under
CCDBG in the President's Budget.
Community Services Programs. The Committee would
eliminate the $20 million in grants to States for
homeless services while maintaining $39 million in
direct Federal grants. The Administration urges the
House to devolve more power to the States for these
programs by ending direct Federal grants rather than
cutting grants to the States to assist homeless people.
9
The President has proposed to terminate the $12 million
National Youth Sports program, but the Committee would
continue this program at the expense of other, much
more vulnerable populations.
Other ACF Children and Families Services Programs. The
Committee proposes significant reductions below the
President's request in ACF services programs. The
Committee would eliminate the Community-Based Resource
Centers Program, which supports vital child abuse and
neglect prevention activities in local communities, the
Runaway and Homeless Youth preventive drug activities
($14 million) and Youth Gang Substance Abuse ($11
million). The Committee would reduce Abandoned Infants
Assistance, Adoption Opportunities, and Temporary Child
Care and Crisis Nurseries ($6 million) ; and Native
American Programs ($3 million). The Committee would
also reduce Developmental Disabilities programs by $45
million, or more than one-third.
Other Independent Agencies:
Social Security Administration (SSA). The Committee
provides SSA with $5.9 billion, $0.3 billion less than
the President's request of $6.2 billion. The Committee
reduces the President's request for the Automation
Investment Fund by $129 million, a reduction of 36
percent -- from $357 million to $228 million -- in the
FY 1996 portion of this priority, multi-year
investment. SSA's automation investment is critical to
ensuring continued quality in the delivery of basic
services like claims processing for the elderly and
disabled. Only by replacing aging terminals and
antiquated 1970s-style systems with new technology in
all 1,400 field offices can SSA increase the
productivity of a smaller workforce. Funding to date
(through FY 1995) pays for new equipment in just over
40 percent of SSA's field offices. The funding level
proposed by the Committee would allow SSA to equip only
another 25 percent of its offices.
The Committee reduces the President's request for the
Disability Investment Fund by $127 million. This
represents a reduction of 24 percent, from $534 million
to $407 million. Such a reduction would slow SSA's
efforts to reduce the backlogs in initial disability
claims and in hearings on disability appeals. These
cuts would make it more difficult to ensure that
persons with severe disabilities begin to receive
Supplemental Security Income and Social Security
10
Disability Insurance payments in a timely manner, and,
persons who are no longer severely disabled but are
still on the rolls are reevaluated.
The Committee strikes the language in the President's
request that would require that not less than $215
million shall be available to conduct continuing
disability reviews (CDRs). The Administration believes
that this language is critical to ensuring that a
sufficient number of CDRs are conducted to enhance the
integrity of both the Supplemental Security Income and
Disability Insurance programs.
Railroad Retirement Board (RRB) The Committee provides
the RRB Inspector General (IG) with $5.1 million,
nearly 25 percent ($1.6 million) less than the
President's request. This level apparently reflects
the Committee's desire that the RRB IG devote less
effort to Medicare fraud investigation. The
Administration believes that, as long as the RRB
retains independent Medicare contracting authority, the
RRB IG should be funded to continue Medicare
investigations.
Corporation for National and Community Service (CNCS).
The Administration opposes the House Committee's
reduction of $94 million for the CNCS programs financed
in this appropriation. This is 36 percent below the
President's request of $263 million for these National
Service activities. These activities include:
Volunteers in Service to America (VISTA) i the Retired
Senior Volunteer Program (RSVP) ; the Foster Grandparent
Program (FGP) i and the Senior Companion Program (SCP).
The Committee level would cut the VISTA program by 57
percent, reducing the number of VISTA volunteers
working to alleviate poverty in low-income communities
nationwide to 2,000 volunteers, less than half the
requested level. The Committee level also would deny
nearly 170, 000 older Americans the opportunity to help
the homebound elderly, disabled children, and others in
their communities. The Administration opposes
reductions to National Service activities and urges the
House to provide the funding level requested in the
President's budget.
National Labor Relations Board (NLRB). The Committee
reduces funding for the NLRB by $53 million (30
percent) below the FY 1995 level, and $58 million
(nearly one-third) below the FY 1996 request. This
would paralyze the NLRB's ability to enforce the
National Labor Relations Act (NLRA) and protect
a
11
employers and workers from unfair labor practices. In
addition, the Committee has included language that
restricts the agency's flexibility to use certain
powers granted to it by the NLRA to effect justice in
the workplace. The Administration objects to such
arbitrary limitations on the agency's operations and
urges the House to restore funding for this important
workplace protection agency.
Corporation for Public Broadcasting (CPB). Public
broadcasting television and radio stations, led by CPB,
are in the process of creating a more efficient,
cost-effective, and healthy future public broadcasting
system. The Administration supports funding for the
CPB at a level consistent with the President's request.
This level would provide the restructuring funds needed
to achieve system-wide savings in the future.
National Council on Disability. The Committee would
reduce the President's request of $1.8 million for the
National Council on Disability to $1.4 million, 22
percent below the FY 1995 enacted level. The
Committee, in report language, indicates its intention
to eliminate Federal support for the Council by FY
1998. The Council is in a unique position to provide
independent, objective information to the Congress and
the Administration about the impact of existing or
proposed Federal policies on people with disabilities.
National Education Goals Panel (NEGP). The
Administration opposes the Committee mark, which would
eliminate funding for the National Education Goals
Panel. The President requested $2.8 million in FY 1996
for NEGP, which plays an integral role in improving
schools by charting our Nation's progress toward
achieving the National Education Goals. The bipartisan
Panel, with the membership of Governors, Senators,
Congressmen, State legislators, and others, represents
true education partnership designed to mobilize the
Nation toward increasing student achievement.
Other Provisions:
General Provision -- Section 509. The Administration
is concerned that the intent of section 509 is not
clear. For example, some might read it as precluding
any transfers permanently authorized by prior
appropriation bills. Others might interpret it as
ending efficient bill collecting procedures enacted in
the 1993 general provisions. This section's intent
12
needs to be made clear to preclude unintended effects
and so it can be judged on its merits. Alternatively,
the section could be deleted.
Infringement on Executive Authority. There are several
provisions in the Committee bill that purport to
require congressional approval before Executive Branch
execution of aspects of the bill. The Administration
will interpret such provisos to require notification
only, since any other interpretation would contradict
the Supreme Court in INS vs. Chadha.
13
EXECUTIVE OFFICE OF THE PRESIDENT
CERICE
STATE
OFFICE OF MANAGEMENT AND BUDGET
SEADIO
WASHINGTON, D.C. 20503
THE DIRECTOR
August 12, 1995
Honorable Mark O. Hatfield
Chairman
Committee on Appropriations
United States Senate
Washington, D.C. 20510
Dear Mr. Chairman:
The purpose of this letter is to provide the
Administration's views on H.R. 2127, the Labor, Health and Human
Services, Education, and Related Agencies Appropriations Bill, FY
1996, as passed by the House. As the Senate develops its version
of the bill, your consideration of the Administration's views
would be appreciated.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays below
the FY 1995 enacted level. The Administration does not support
the level of funding assumed by the House or Senate Committee
602 (b) allocations. The Administration must evaluate each bill
both in terms of funding levels provided and the share of total
resources available for remaining priorities. The House-passed
bill is over $12 billion below the President's request.
The President strongly believes that we must invest in our
country's future by supporting education and training.
Investments in these areas will promote long-term economic growth
and higher living standards. As discussed more fully below, the
House-passed bill would imprudently cut valuable, proven programs
that educate our Nation's children, aid the disadvantaged, invest
in working people, and protect our Nation's health and safety.
Many of the programs funded in this bill are aimed at protecting
and aiding the most vulnerable in our society. Reductions
proposed by the House would have a particularly harmful effect on
our Nation's children, our youth, and the disadvantaged by
cutting funding for numerous education programs, training
programs, the Corporation for National and Community Service, and
mental health and substance abuse prevention and treatment
demonstration grants.
For these reasons, the President would veto the bill if it
were presented to him as it passed the House.
Cutting Programs for Pre-School Children
The Administration strongly opposes the House's reduction in
the Head Start program. This program plays a vital role in
preparing disadvantaged young children for school; its expansion
should be continued, not reversed. The President would add $400
million and 32,000 new slots to the Head Start program in FY
1996. The House, in contrast, would reduce funding by $137
million below the FY 1995 level ($537 million below the
President's request). If program quality were to be maintained
at such a reduced level, the House action would cut between
45,000 and 50,000 children from the program. The Administration
strongly urges the Senate to provide FY 1996 funding at the level
requested by the President.
Cutting Programs for Education and Training
The Administration is committed to ensuring adequate funding
for key education programs that help average Americans build a
better future for themselves and their families. More than ever
before in our Nation's history, what you earn depends on what you
learn. Yet, the House would reduce the President's request for
education programs by $5 billion. The House's recommended
overall funding level is $4 billion, or 16 percent, below the FY
1995 enacted level. The President is committed to investing in
our children's education. The House has systematically targeted
those key programs designed to serve our Nation's youth for the
most debilitating cuts. The House would reduce -- by 30 percent
below the President's request -- the Administration's highest
priority programs, programs that focus on improving student
achievement in our Nation's elementary and secondary schools.
These draconian reductions would be achieved through the
termination of critical education programs. The House's ill-
advised decision to terminate funding for Goals 2000 would set
back State-based efforts to improve learning for all students and
to build a more competitive workforce. Drastic reductions in
other programs, including Education for the Disadvantaged and
Safe and Drug Free Schools, are unacceptable. These reductions
are short-sighted and would have a devastating effect on our
Nation's future.
The Administration strongly opposes the House's elimination
of the Summer Youth Employment and Training Program. The House's
action would eliminate the opportunity for 615,000 disadvantaged
youth per year to acquire valuable job experience and learn
essential job skills. The Administration strongly supports this
program and urges Congress to ensure that the program for the
summer of 1996 is funded in the FY 1996 appropriations process.
2
The House-passed bill would drastically reduce the
President's request for the Department of Labor's youth job
training programs and the bipartisan school-to-work initiative --
by 46 percent, or $1.3 billion. At a time when it is more
evident than ever that America's youth are not receiving enough
opportunities to acquire the job skills necessary to succeed in
today's economy, these reductions are unacceptable.
At a time of increased workforce anxiety and major labor
market dislocations, the House-passed bill would impose
unacceptably large reductions in resources to retrain dislocated
workers and low-income adults and help them find jobs through
One-Stop Career Centers. The bill would reduce funding for
dislocated workers and disadvantaged adults by $545 million, or
25 percent, below the FY 1995 comparable level. The bill would
cut $1.4 billion, or 46 percent, from the President's request and
would deny training and reemployment services to about 506,000
dislocated workers and 84,000 low-income adults. While corporate
and military downsizing continues to displace hard-working
Americans, shrinking these critical services is unconscionable.
Cutting Programs That Help Our Communities
The Administration strongly opposes the House's reduction of
$94 million for the Corporation for National and Community
Service programs funded in this appropriations bill. The House
would cut the Volunteers in Service to America program (VISTA) by
57 percent, reducing the number of VISTA volunteers working to
alleviate poverty in low-income communities nationwide to 2,000
volunteers, less than half the requested level. The House level
also would deny nearly 125,000 older Americans the opportunity to
help the homebound elderly, disabled children, and others in
their communities. The Administration urges the Senate to
provide the funding level requested in the President's budget.
Cutting Programs That Protect Our Nation's Health
The Administration opposes the provision in the House-passed
bill that would prohibit funding of the Surgeon General position.
This micromanagement of the Executive Branch would severely
curtail the leadership that the public has traditionally looked
to for guidance on personal and societal health issues. The
Administration urges the Senate to remove this provision.
The Administration is concerned that the House mark for
programs funded under the Ryan White CARE Act is $67 million less
than the $723 million request. The funding level proposed by the
President represents the minimum amount necessary to maintain
funding for the 42 cities already receiving Ryan White
assistance; to fund the seven to ten new cities expected to
3
qualify for Ryan White assistance in FY 1996; and to provide
sufficient funding to keep up with increasing AIDS caseloads in
States, cities, and local clinics currently receiving Ryan White
grants.
The House-passed bill does not appropriate a specific amount
for AIDS research through a single appropriation for the National
Institutes of Health's (NIH's) Office of AIDS Research as
requested by the Director of NIH in the President's budget.
Unlike research on other diseases, HIV research is spread among
all of the institutes and centers of NIH, rather than being
focused essentially in one institute. By failing to provide a
single appropriation, the Congress makes less explicit its
intentions regarding funding to fight the disease that is now the
leading cause of death for people aged 25 to 44. The current
single appropriation helps target NIH research dollars
effectively, minimizing duplication and inefficiencies across the
21 institutes and centers that carry out HIV/AIDS research.
Cutting Programs for Individuals with Disabilities
The Administration is very concerned about the significant
reductions made by the House in programs for individuals with
disabilities. While allowing funding for direct services to
remain essentially intact, the House-passed bill would
systematically reduce or eliminate funds available for research,
demonstration, training, and technical assistance programs
focusing on individuals with disabilities and would phase out the
Federal appropriation for the National Council on Disability.
These programs provide essential support for the State direct
service programs and help the Administration and the Congress
understand and respond to disability issues.
Violence Against Women
The House-passed bill does not fund the Grants for Battered
Women Shelters program, an extremely important program designed
to help battered women and to reduce violence against women. The
President's budget requests $15 million for enhanced funding of
battered women's shelters. The House mark would mean fewer
shelters and fewer resources for battered women. Not funding
this program would eliminate new community-based efforts aimed at
stopping violence against women before it occurs. The
Administration urges the Senate to fund this program.
4
Abortion
The President believes that abortion should be safe, legal,
and rare. The Administration strongly opposes the provision of
the House-passed bill that would change existing law by allowing
States to deny Medicaid funding for abortions for victims of rape
and incest. The provision that the House has approved would
prevent poor women from having access to abortion services even
in situations where they are victims of rape or incest. This
change in the law would unfairly target the most vulnerable poor
women and their families. The Administration strongly opposes
any effort to curtail the ability of poor women to choose
abortion in cases of rape or incest and urges the Senate to
delete this provision.
The Administration opposes the provision in the House-passed
bill that appears designed to prevent State and Federal programs
from requiring accreditation for medical residency programs when
these private medical accreditation standards include access to
training in abortion procedures, even though current standards
already exempt programs and residents with religious or moral
objections to abortions. This provision could have the effect of
denying Federal funding or assistance to States that require
medical residency programs to comply with these accreditation
standards. The Administration objects to this unwarranted and
unnecessary interference with the education standards for the
training of our Nation's physicians.
Family Planning
The Administration notes that the House has restored funding
for the Title X Family Planning Program. Republicans and
Democrats have long agreed that family planning is instrumental
in helping to prevent the need for abortion. We urge the Senate
to provide funding for this program at the requested level.
Striker Replacement
The Administration strongly opposes a provision of the
House-passed bill that would prohibit the Executive Branch from
using FY 1996 funds to implement, administer, or enforce any
Executive Order or other rule or order that prohibits Federal
contracts with companies that hire permanent replacements for
striking employees. This provision would impinge upon the
Executive Branch's ability to ensure a stable supply of quality
goods and services for the government's programs. The Senate is
urged to delete this provision.
5
Prohibition on Political Advocacy
The House has included a provision, "Prohibition on the Use
of Federal Funds for Political Advocacy,' that presents a broad
attack upon the exercise of fundamental rights protected by the
First Amendment. Congress may, under some circumstances,
restrict the uses to which Federal monies are put; however,
insofar as this provision forecloses the exercise of protected
rights with other than Federal funds, it would be deemed a
penalty for that exercise and thus would be unconstitutional.
The provision would limit the ability of organizations to
participate in administrative or judicial proceedings and
appearances before State and local entities. In addition, it is
now widely agreed that much is to be gained when private
organizations and charities work in partnership with the
government to implement social policies. The Senate is strongly
urged to delete this provision.
Additional Administration concerns with the bill as passed
by the House are contained in the enclosure. We look forward to
working with the Committee to address our mutual concerns.
Sincerely,
Alice M. Rivlin
Director
Enclosure
Identical Letters Sent to Honorable Mark O. Hatfield,
Honorable Robert C. Byrd, Honorable Arlen Specter,
and Honorable Tom Harkin
6
Enclosure
(Senate Subcommittee)
ADDITIONAL CONCERNS
H.R. 2127 -- DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES,
EDUCATION, AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1996
(AS PASSED BY THE HOUSE)
The Administration looks forward to working with the
Congress to address the following concerns.
Department of Education
Goals 2000. The Administration strongly opposes the
House's proposed termination of Goals 2000. The
President has requested $750 million in FY 1996 for
Goals 2000, which would essentially double the size of
the program. At this funding level, Goals 2000 would
raise academic standards in 48 states and help directly
fund as many as 16,000 schools. The House would
eliminate this program entirely. Raising academic
standards provides a necessary framework for improving
all aspects of education.
Title I -- Education for the Disadvantaged. The
Administration opposes the House mark, which would
reduce funding for the Title I Grants to Local
Educational Agencies Program by $1.1 billion, cutting
as many as 1.1 million children from the program. The
President has requested $7 billion for this program, an
increase over the FY 1995 enacted level of $302
million. This funding level would assist States in
raising the academic achievement of 6.4 million
disadvantaged children.
O
Safe and Drug-Free Schools and Communities. The
Administration opposes the House mark, which would
reduce this program by 60 percent -- to $200 million.
This action would deprive over 23 million students of
services in FY 1996 alone. The House proposal is a 57-
percent reduction from the FY 1995 post-rescission
funding level. The President has requested $500
million in FY 1996 for this program to combat violence
and drug use in 97 percent of school districts (over
14,000) serving 39 million students. The
Administration also opposes the House's decision to
strike funding for a key crime prevention program, the
Family and Community Endeavor Schools program.
School-to-Work (Departments of Labor and Education).
The Administration opposes the House mark, which would
reduce funding for School-to-Work to $190 million, or
less than half of the Administration's request. The
President has requested $400 million (split between
Labor and Education), a 60 percent increase over the FY
1995 comparable level, to finance a third wave of
temporary, seed capital grants. This initiative
supports States building school-to-work systems with
planning and five-year implementation grants. Once
these systems are in place, the program will sunset.
The House mark would seriously hamper the efforts of up
to 30 States to complete their reforms started in FYs
1994 and 1995. Remaining States could be denied the
chance to implement their reform plans to raise student
skills.
Vocational and Adult Education. The President has
requested $1.6 billion for the vocational education,
adult education, and family literacy programs. The
Administration opposes the House mark, which would
reduce funding for these programs to $1.2 billion. A
reduction of $220 million from the FY 1995 enacted
level would adversely affect over 1.9 million students
nationally and would eliminate adult education services
to over 78,000 adults who need to improve their basic
and literacy skills in order to succeed in their roles
as workers, citizens, and parents.
Federal Direct Student Loan Program. The Student Loan
Reform Act (SLRA) of 1993 provided $550 million in
mandatory funds in FY 1996 for the administration of
the direct student loan program and the transition from
the guaranteed student loan program to direct loans.
The Administration opposes the House mark, which would
reduce this funding to $320 million -- an amount
insufficient to administer the direct or guaranteed
loan program. This action would stop the growth of
cost-effective, efficient direct lending in order to
keep providing unnecessary payments to banks, State
agencies, and secondary markets.
Student Financial Assistance Programs. The President
has proposed to increase the Pell grant maximum award
to $2,620, which is $280 over the FY 1995 level of
$2,340. The Administration is concerned that the House
has increased the maximum by only $100, to $2,440.
Furthermore, the Administration is deeply concerned
that the House's minimum award proposal would eliminate
approximately 300,000 students from the program who
would receive awards of between $400 and $600 under the
President's proposal.
2
Educational Technology. The President has requested
$122 million in FY 1996 for four educational technology
programs. The Administration opposes the House's
action that would provide only $25 million for this
program, funding only the K-12 Technology Learning
Challenge program. This funding level would
significantly limit efforts to create new private-
public partnerships to raise student achievement
through advanced technology. The elimination of three
technology programs would reduce learning opportunities
for all children, and especially for educationally and
economically disadvantaged students.
Eisenhower Professional Development and Technical
Assistance Centers. The President has requested $785
million in FY 1996 to help States train teachers to
help students achieve high academic standards in 90
percent of all school districts. The Administration
opposes the House's action that would eliminate this
program and, instead, appropriate a reduced funding
level of $550 million in anticipation of the passage of
a block grant proposal currently under consideration in
the Economic and Educational Opportunities Committee,
with unclear performance standards and accountability
structures. In addition, the Administration opposes
the elimination of funds for the comprehensive
technical assistance centers for improving elementary
and secondary education programs. The President has
requested $55 million in FY 1996 for 15 consolidated
centers that will provide training and assistance to
States, school districts, and schools in upgrading all
aspects of education.
Education for Children with Disabilities. The
President has requested $254 million, the FY 1995
enacted level, to support several research,
demonstration, training, and technical assistance
activities that assist State efforts to serve children
with disabilities in the least restrictive educational
environments. The Administration opposes the House's
action that would reduce funding for these programs by
$162 million, or 64 percent, by eliminating such
programs as grants for early childhood education,
innovation and development grants, and training
personnel for the education of children with
disabilities.
Bilingual and Immigrant Education. The President has
requested $200 million for Bilingual Education and $100
million for Immigrant Education. The Administration
opposes the House mark, which would reduce funding for
Bilingual Education by almost 75 percent, to $53
3
million, and reduce the amount available for Immigrant
Education by 50 percent, to $50 million. The combined
House funding of $103 million is a 50-percent reduction
from the FY 1995 enacted level. This would severely
reduce instructional services for over 700,000 limited-
English-speaking children and adults. School districts
that are heavily impacted by recently arrived immigrant
students would be adversely affected.
Howard University. The Administration opposes the
House mark of $170 million, which is $26 million, or 13
percent, below the Administration's request. Such a
large decrease in one year would cause immediate and
major layoffs of approximately 500 faculty and
administrative staff. Since the university has already
taken decisive action during FYs 1994, 1995 to balance
its budget by eliminating nearly 400 staff positions,
further reductions in staff levels would be difficult
to achieve without harming the overall quality of
undergraduate and graduate education. The
Administration is also concerned that the bill would
eliminate earmarks for strengthening endowment and
research efforts, a counterproductive move in light of
the mutual goal to help Howard University plan for
future financial independence.
Advisory Councils. The Administration opposes
provisions of the House-passed bill would prohibit the
funding of certain advisory boards, including the
President's Board of Advisors on Historically Black
Colleges and Universities, the President's Advisory
Commission on Educational Excellence for Hispanic
Americans, the National Board of the Fund for the
Improvement of Postsecondary Education, and the
Historically Black Colleges and Universities Capital
Financing Board.
Gender Discrimination. The Administration objects to
the unprecedented provision of the House-passed bill
that would halt the Department of Education's
enforcement of Title IX's prohibition on gender
discrimination in intercollegiate athletics until the
Department's Office for Civil Rights issues certain
guidance in that area. The Department has already
committed to issuing updated policy guidance in this
area by clarifying existing guidance, describing what
steps colleges and universities should take to comply
with Title IX. That guidance will be issued by the
beginning of the fall semester. The provision in the
bill is unwarranted micromanagement and should be
deleted.
4
Staffing Levels. The Administration opposes the
provision in Section 305 of the bill that would
prohibit the Department from hiring staff "if such
hiring would increase on-board employment." The
Federal Workforce Restructuring Act (FWRA) already
imposes limits on Federal employment. The President
must have the authority to manage within those strict
limits. As long as the FWRA limits are met, agencies
should have the authority and flexibility to manage
employment to best meet program needs within
appropriated funding levels. An on-board employment
ceiling is a particularly arbitrary constraint because
it ignores seasonal employment fluctuations and
full-time/part-time employment mixes. It was for this
reason that the Federal Employees Part-Time Career
Employment Act of 1978 required the use of the
full-time equivalent employment measure in the
management of Federal employment.
Department of Labor
Enforcing Worker Protection Laws and Improving the
Workplace. The Administration opposes the House's
reductions to agencies and programs that, among other
things, strive to ensure that workers have safe and
healthy working environments, protect their pensions,
and meet the challenges of the global economy.
Overall, the funding provided by the bill is
approximately 20 percent below the President's request
for these important activities. The House level
includes major reductions to the Occupational Safety
and Health Administration's enforcement activity (cut
by one-third), the Mine Safety and Health
Administration, the Employment Standards
Administration, particularly to programs that enforce
wage and hour laws. The House also proposes deep cuts
in the Bureau of International Labor Affairs, which
helps our Nation compete in the global marketplace, and
the elimination of the Office of the Workplace
Programs, which helps companies evolve into high
performance workplaces. The Administration urges the
Senate to restore funding for these programs.
One-Stop Career Centers. The Administration is
disappointed with the House's funding level of $100
million -- half the President's request -- for this
important, system-building investment. At the House
level, only two or three States would receive new
implementation grants in FY 1996, and the second- and
third- year funding levels for the 14-15 States that
received awards in FY 1994 and FY 1995 would be
reduced. Production of enhanced labor market
5
information products and services that will help people
find jobs more efficiently would be postponed. In
addition, the $89 million cut from the FY 1995 level in
the Employment Service would undermine the States' One-
Stop system-building efforts.
Job Corps. The House's mark for Job Corps is $107
million below the President's request. The
Administration urges full funding of Job Corps.
Without this funding, the long-term expansion plans
would be severely undercut and several existing centers
likely would have to be closed. The House mark would
mean that thousands fewer disadvantaged youth would
have the opportunity to learn necessary basic education
and job skills than would be the case under the
President's request.
Unemployment Insurance Administration. The
Administration is concerned that the House freezes the
program at the FY 1995 level, cutting $156 million from
the President's request. This level of funding could
result in delays in benefit payments as well as
increased errors in benefit payments and tax
collections, adversely affecting trust fund balances.
States might also lay off staff or close local offices
in an effort to cut costs.
Bureau of Labor Statistics. The Administration opposes
the House's mark, which is a $29 million, or eight-
percent reduction to the President's request. The
reduction would undercut the Bureau's ongoing efforts
to improve its existing data series and would certainly
require program reductions in several data series, such
as the SIC and SOC revision, Emerging Labor Market
Data, or Local Area Wage Surveys. Given the bipartisan
support for improved statistical measures of the
Nation's economy, the Senate is urged to fund the
Bureau's activities fully.
Community Service Employment for Older Americans. The
Administration opposes the House's reduction to Title V
of the Older Americans' Act, the Senior Community
Service Employment program. The reduction of $46
million (11.6 percent) below the FY 1995 level would
provide almost 8,000 fewer opportunities for the
low-income elderly to be employed in community service
organizations within their communities. We urge the
Senate to fully fund this program. In addition, we
urge the Senate to adopt language that has been
included in the bill for the past several years that
6
would specify the amounts appropriated for grants to
the States and for grants or contracts with public
agencies and public or private nonprofit organizations.
OSHA Regulations. The House-passed bill would prevent
OSHA from developing or issuing any proposed or final
ergonomics protection standards or guidelines and would
require OSHA to change its fall protection standard.
The Administration objects to congressional
micromanagement of workplace safety standards. The
fall protection standard was developed after careful
consideration of scientific evidence. OSHA should not
be prevented from continuing its work related to
issuing a proposed rule to address work-related
musculoskeletal injuries, which have increased an
estimated seven times in the last ten years. The bill
also would prohibit recordkeeping and reporting
requirements directly related to ergonomic-related
injuries or illnesses. The Administration objects to
Congressional interference in the collection of data,
treating one type of illness differently than others.
Child Labor Regulations. The House has included
language that restricts the Department of Labor's
efforts to protect the Nation's working minors. The
language would limit the ability of the Department to
implement and enforce both Hazardous Orders #12 and #2
on minor's use of paper balers and incidental driving
of motor vehicles, respectively. The Administration
urges the Senate to delete this provision.
Davis-Bacon Helpers. The House did not include
language requested by the Administration that would
prohibit the Department of Labor from implementing the
Davis-Bacon helper regulation. The Administration
urges the Senate to restore this provision to allow the
Department time to rework the helper regulation to
insure the continuation of viable apprenticeship
programs on Federal construction projects.
Economically Targeted Investments. The Administration
objects to language in the House bill that would
prevent the Department of Labor from promoting
economically targeted investments or even providing
pension plans with information about such investment
alternatives. Economically targeted investments
provide collateral benefits to communities without
sacrificing either investment safety or financial
return for pension plan participants. This language is
objectionable because it places an unwarranted
restriction on the Department's responsibility to
interpret and enforce pension law.
7
Department of Health and Human Services
AIDS Education and Training Centers (ETCs). The
Administration is concerned that the House eliminates
funding for AIDS Education and Training Centers, which
help train tens of thousands of health professionals
about constantly evolving HIV care and treatment
procedures. The President's budget includes $16
million for AIDS ETCs, the same level as in FY 1995.
Substance Abuse and Mental Health Services
Administration (SAMHSA). The Administration is very
concerned about the House's $456 million (20 percent)
reduction to the President's request for total SAMHSA
funding. The Administration notes that the overall
funding for SAMHSA's demonstration and training grants
is reduced from $566 million to $202 million, a $364
million, or 64 percent, decrease from the FY 1996
President's request. This reduction would seriously
undermine the National Drug Control Strategy and
jeopardize substance abuse treatment and prevention and
mental health services for tens of thousands of
pregnant women, high risk youths, and other under-
served Americans. It would also erode SAMHSA's ability
to improve service delivery, ensure quality standards,
and educate consumers and providers of services.
Reductions from the President's request in substance
abuse treatment funding alone would result in 40,000
fewer persons being treated.
SAMHSA - Homeless Services. The Administration is
concerned about the House's elimination of the Projects
for Assistance in Transition From Homelessness (PATH)
formula grant program. These grants provide drug
treatment and mental health services to the homeless,
who are particularly vulnerable to substance abuse and
mental health problems. An estimated one-third of the
people living on America's streets and in shelters have
severe mental illness, and another one-third suffer
from substance abuse problems. Over 127,000
individuals would no longer receive services if this
program were eliminated.
Agency for Health Care Policy and Research (AHCPR).
The Administration is concerned that the House bill
cuts AHCPR by $111 million from the request. This 78-
percent reduction from the level requested by the
President would severely impede AHCPR's ability to
accomplish its mission of collecting health care data
and supporting health services research.
8
Health Immigration Initiative. The House has failed to
fund the President's immigration initiative for
Medicaid, withholding Federal financial assistance to
the seven States most heavily affected by illegal
immigration. The President's proposal would provide
$150 million in FY 1996 to help States pay for their
share of the Medicaid costs of providing emergency
medical services for undocumented aliens.
Crime Prevention. The House-passed bill would
eliminate practically all of the Administration for
Families and Children's violent crime reduction
funding. Important programs that would not be funded
include $10 million in community economic partnership
investment funds to stimulate business opportunities in
low-income areas, $72.5 million in grants for the
Community Schools program, and $7 million for education
and prevention grants to reduce the sexual abuse of
runaway and homeless youth.
Administration on Aging (AOA). The House would
eliminate seven of 12 AOA programs and reduce the
funding for all but one. Total funding would be
reduced by $119 million (or 13 percent) below the
President's request of $897 million. Funding for AOA's
two primary nutrition programs, which includes funding
for Meals on Wheels, which provide meals for over five
million older Americans, was cut back by $23 million,
or 5 percent. At the House's funding level, nearly 12
million fewer meals would be reimbursed. In addition,
funding for programs that provide supportive services
for the elderly, many of whom are at risk of being
institutionalized, is reduced by over $15 million, and
similar funding for Native Americans is reduced by over
$2 million.
Low Income Home Energy Assistance Program (LIHEAP).
The House would eliminate LIHEAP entirely in FY 1996,
ending heating and cooling assistance to between five
and six million low-income families. Approximately 30
percent of the households receiving LIHEAP benefits
have at least one elderly member and at least 20
percent have one disabled member.
Child Care and Development Block Grant (CCDBG). The
House has not funded the President's request for a $114
million increase above the FY 1995 level in the Child
Care and Development Block Grant. The CCDBG provides
child care assistance to low-income families who need
child care to remain in the workforce and off welfare.
9
The House funds the program at the FY 1995 level and
eliminates two programs, totaling $14 million, that are
proposed for consolidation under CCDBG in the
President's Budget.
Community Services Programs. The House would eliminate
the $20 million in grants to States for homeless
services while maintaining $39 million in direct
Federal grants. The President has proposed to
terminate the $12 million National Youth Sports
program, but the House would continue this program at
the expense of other, much more vulnerable populations.
Electronic Benefits Transfer (EBT) Task Force. The
Administration objects to the elimination of funding,
provided under the Administration for Children and
Families, to help fund the Electronic Benefits Transfer
(EBT) Task Force. The Task Force brings a
government-wide perspective to the effort to ensure
that Federal and State benefits are delivered, both to
individuals who receive cash benefits and do not have
bank accounts and those who receive food benefits, in
the most efficient and cost-effective manner possible
for both the Federal government and the States. The
Senate is urged to restore funding for this program.
Other ACF Children and Families Services Programs. The
House proposes significant reductions below the
President's request in ACF services programs. The
House would eliminate the Community-Based Resource
Centers Program, which supports vital child abuse and
neglect prevention activities in local communities, the
Runaway and Homeless Youth preventive drug activities
($14 million) and Youth Gang Substance Abuse ($11
million). The House would reduce Abandoned Infants
Assistance, Adoption Opportunities, and Temporary Child
Care and Crisis Nurseries ($6 million) i and Native
American Programs ($3 million). The House would also
reduce Developmental Disabilities programs by $45
million, or more than one-third.
Other Independent Agencies:
Social Security Administration (SSA). The House
provides SSA with $5.9 billion, $0.3 billion less than
the President's request of $6.2 billion. The House
reduces the President's request for the Automation
Investment Fund by $129 million, a reduction of 36
percent -- from $357 million to $228 million -- in the
FY 1996 portion of this priority, multi-year
investment. SSA's automation investment is critical to
ensuring continued quality in the delivery of basic
10
services like claims processing for the elderly and
disabled. Only by replacing aging terminals and
antiquated 1970s-style systems with new technology in
all 1,400 field offices can SSA increase the
productivity of a smaller workforce. Funding to date
(through FY 1995) pays for new equipment in just over
40 percent of SSA's field offices. The funding level
proposed by the House would allow SSA to equip only
another 25 percent of its offices.
The House reduces the President's request for the
Disability Investment Fund by $127 million. This
represents a reduction of 24 percent, from $534 million
to $407 million. Such a reduction would slow SSA's
efforts to reduce the backlogs in initial disability
claims and in hearings on disability appeals. These
cuts would make it more difficult to ensure that
persons with severe disabilities begin to receive
Supplemental Security Income and Social Security
Disability Insurance payments in a timely manner, and,
persons who are no longer severely disabled but are
still on the rolls are reevaluated.
The House strikes the language in the President's
request that would require that not less than $215
million shall be available to conduct continuing
disability reviews (CDRs). The Administration believes
that this language is critical to ensuring that a
sufficient number of CDRs are conducted to enhance the
integrity of both the Supplemental Security Income and
Disability Insurance programs.
Railroad Retirement Board (RRB). The House provides
the RRB Inspector General (IG) with $5.1 million,
nearly 25 percent ($1.6 million) less than the
President's request. This level apparently reflects
the House's desire that the RRB IG devote less effort
to Medicare fraud investigation. The Administration
believes that, as long as the RRB retains independent
Medicare contracting authority, the RRB IG should be
funded to continue Medicare investigations.
National Labor Relations Board (NLRB). The House
reduces funding for the NLRB by $53 million (30
percent) below the FY 1995 level, and $58 million
(nearly one-third) below the FY 1996 request. This
would paralyze the NLRB's ability to enforce the
National Labor Relations Act (NLRA) and protect
employers and workers from unfair labor practices. In
addition, the House has included language that
restricts the agency's flexibility to use certain
powers granted to it by the NLRA to effect justice in
11
the workplace. The Administration objects to such
arbitrary limitations on the agency's operations and
urges the Senate to strike this language and restore
funding for this important workplace protection agency.
Corporation for Public Broadcasting (CPB). Public
broadcasting television and radio stations, led by CPB,
are in the process of creating a more efficient,
cost-effective, and healthy future public broadcasting
system. The Administration supports funding for the
CPB at a level consistent with the President's request.
This level would provide the restructuring funds needed
to achieve system-wide savings in the future.
National Council on Disability. The House would reduce
the President's request of $1.8 million for the
National Council on Disability to $1.4 million, 22
percent below the FY 1995 enacted level. The House, in
report language, indicates its intention to eliminate
Federal support for the Council by FY 1998. The
Council is in a unique position to provide independent,
objective information to the Congress and the
Administration about the impact of existing or proposed
Federal policies on people with disabilities.
National Education Goals Panel (NEGP). The
Administration opposes the House mark, which would
eliminate funding for the National Education Goals
Panel. The President requested $2.8 million in FY 1996
for NEGP, which plays an integral role in improving
schools by charting our Nation's progress toward
achieving the National Education Goals. The bipartisan
Panel, with the membership of Governors, Senators,
Congressmen, State legislators, and others, represents
true education partnership designed to mobilize the
Nation toward increasing student achievement.
Other Provisions:
General Provision - Section 510. The Administration is
concerned that the intent of section 510 of the House-
passed bill is not clear. For example, some might read
it as precluding any transfers permanently authorized
by prior appropriation bills. Others might interpret
it as ending efficient bill collecting procedures
enacted in the 1993 general provisions. This section's
intent needs to be made clear to preclude unintended
effects and so it can be judged on its merits.
Alternatively, the section could be deleted.
12
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
E
UNITED
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
STanDy
SERVICE
September 14, 1995
THE DIRECTOR
Honorable Robert C. Byrd
Committee on Appropriations
United States Senate
Washington, D.C. 20510
Dear Senator Byrd:
The purpose of this letter is to provide the
Administration's views on H.R. 2127, the Labor, Health and Human
Services, Education, and Related Agencies Appropriations Bill, FY
1996, as reported by the Subcommittee. As the Full Committee
develops its version of the bill, your consideration of the
Administration's views would be appreciated. Because we have not
yet seen the Subcommittee bill or report, these views are,
necessarily, preliminary.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays below
the FY 1995 enacted level. At the same time, the President's
budget increases funding for investment programs, a number of
which are included in this bill, that are essential to economic
growth and a higher standard of living for all Americans. The
Administration does not support the level of funding assumed by
the House or Senate Committee 602 (b) allocations and urges the
Congress to direct more funds to programs in this bill. The
Administration supports reducing spending but does not share the
priorities reflected in the Subcommittee bill, which is roughly
$10 billion below the President's request.
Many of the programs funded in this bill are aimed at
protecting and aiding the most vulnerable in our society. While
the Subcommittee has restored some funding for these programs
relative to the House, reductions proposed by the Subcommittee
would have a particularly harmful effect on our Nation's
children, our youth, and the disadvantaged by cutting funding for
numerous education programs, including Goals 2000, and for
training programs, including summer jobs for low-income youth.
For these reasons, discussed more fully below, the President
would veto the bill if it were presented to him as reported by
the Subcommittee.
Cutting Programs for Pre-School Children
The Administration strongly opposes the Subcommittee's
reduction in the Head Start program. This program plays a vital
role in preparing disadvantaged young children for school; its
expansion should be continued, not reversed. The President would
add $400 million and 32,000 new slots to the Head Start program
in FY 1996. The Subcommittee, in contrast, would reduce funding
by $133 million below the FY 1995 level ($533 million below the
President's request). If program quality were to be maintained
at such a reduced level, the Subcommittee action would cut
between 45,000 and 50,000 children from the program. The
Administration strongly urges the Senate to provide FY 1996
funding at the level requested by the President.
Cutting Education Programs
The Administration is pleased that the Subcommittee has
supported an increased overall funding level for the Department
of Education beyond the levels included in the House bill.
Continued support for key programs in the Department of Education
is essential for the future growth of our country. However, even
with the Subcommittee's increases, the bill reduces spending for
Education programs by $3.5 billion below the President's request.
Many key programs are cut below the FY 1995 levels and still
further below the levels that the Nation's needs call for.
The Administration strongly opposes the Subcommittee's
decision to reduce funding for Education programs, including
Goals 2000, Title I (Education for the Disadvantaged), and Safe
and Drug-free Schools and Communities, by $1.5 billion below the
FY 1995 level. At the Subcommittee levels, thousands of schools
would not get Federal aid to help them develop educational
reforms to improve academic achievement for all students. More
than 650,000 children from some of our poorest communities would
be denied the assistance they need to benefit from educational
reforms and challenging academic standards. And, millions of
children would be deprived the opportunity to learn in safe,
drug-free schools.
Cutting Programs for Training
The Administration strongly opposes the Subcommittee's
elimination of separate funding for the Summer Youth Employment
and Training Program. The Subcommittee's action would eliminate
the opportunity for as many as 600,000 disadvantaged youth per
year to acquire valuable job experience and learn essential job
skills. As the President noted when he signed H.R. 1944, the
2
Administration strongly supports this program and will work with
the Congress to ensure that the program for the summer of 1996 is
funded adequately in the FY 1996 appropriations process.
The Administration is pleased that the Subcommittee has
provided modest restorations of the House's drastic reductions to
the President's request for the Department of Labor's youth job
training programs and the bipartisan school-to-work initiative.
Nevertheless, the Subcommittee action would reduce youth training
funding (including the Department of Education share of School-
to-Work) by 42 percent, or $1.2 billion. Especially when it is
more evident than ever that America's youth are not receiving
enough opportunities to acquire the job skills necessary to
succeed in today's economy, these reductions are unacceptable.
At a time of increased workforce anxiety and major labor
market dislocations, the Subcommittee bill would impose
unacceptably large reductions in resources to retrain dislocated
workers and low-income adults and help them find jobs through
One-Stop Career Centers. The bill would reduce funding for
dislocated workers and disadvantaged adults financed under the
Job Training Partnership Act and for One-Stops by $604 million,
or 26 percent, below the FY 1995 comparable level. The bill
would cut $1.4 billion, or 48 percent, from the President's
request and would deny training and reemployment services to
about 500,000 dislocated workers and at least 100,000 low-income
adults. While corporate and military downsizing continues to
displace hard-working Americans, shrinking these critical
services is unconscionable.
Cutting Programs That Help our Communities
The Administration strongly opposes the Subcommittee's
reduction of $62 million for the Corporation for National and
Community Service programs funded in this bill. The Subcommittee
would cut the Volunteers in Service to America (VISTA) program by
27 percent, reducing the number of VISTA volunteers working to
alleviate poverty in low-income communities nationwide. The
Subcommittee level also would deny nearly 125,000 older Americans
the opportunity to help the homebound elderly, disabled children,
and others in their communities. The Administration urges the
Senate to provide funding at the requested level.
Cutting Programs That Protect Our Nation's Health
The Administration is concerned that the Subcommittee's mark
for programs funded under the Ryan White CARE Act is $67 million
less than the $723 million request and that the Subcommittee has
eliminated AIDS Education and Training Centers. The funding
3
level proposed by the President for the Ryan White program
represents the minimum amount necessary to maintain funding for
current and expected grantees while keeping up with increasing
AIDS caseloads in States, cities, and local clinics currently
receiving Ryan White grants.
The Administration is concerned that the Subcommittee has
not provided adequate funding for research supported by the
National Institutes of Health (NIH) and urges the Committee to
fund NIH at the President's request. The Administration
appreciates the Subcommittee's action to preserve the specific
appropriation for NIH's Office of AIDS Research as requested by
the Director of NIH in the President's budget.
The Administration objects to the Subcommittee's proposed
rescission of $53 million for childhood immunization programs, as
well as to the $14 million reduction from the President's
requested level for FY 1996. States have documented their need
for these funds to purchase vaccines. Providing less than the
level appropriated in FY 1995 or the amount requested in FY 1996
could impede accomplishment of our shared goal of immunizing a
greater percentage of America's children.
The Administration is very concerned about the
Subcommittee's $374 million (17 percent) reduction to the
President's request for funding of the Substance Abuse and Mental
Health Services Administration (SAMHSA). Although funding for
mental health and substance abuse demonstration programs has been
increased by $212 million above the House level, the money for
that restoration has come out of the substance abuse and mental
health block grants, as well as from a transfer of $200 million
from the Department of Education's Safe and Drug Free Schools
program. While the Administration is pleased that the Senate
mark restores funding for much of the drug treatment and mental
health services to the homeless, the overall 17-percent reduction
in SAMHSA funding would seriously undermine the National Drug
Control Strategy.
Social Security Administration (SSA) Automation
The Subcommittee bill would reduce the President's request
for the Automation Investment Fund by $190 million, from $357
million to $167 million. At the Subcommittee's funding level,
nearly half of SSA's field offices would be forced to operate
with aging terminals and an antiquated 1970s-style system. This
would sharply reduce the quality of service to the Nation's
elderly.
4
Workplace Enforcement
The Administration appreciates the Subcommittee's action to
restore some funding for agencies that enforce safety and health
and workplace laws. While the additions for some agencies are
substantial, most programs still are funded below the FY 1995
level and well below the President's request. The Administration
urges the Committee to increase funding for these programs that
protect workers' lives, their pensions, and their rights on the
job.
Cutting Programs for Individuals with Disabilities
The Subcommittee bill would systematically reduce or
eliminate funds available for research, demonstration, training,
and technical assistance programs focusing on individuals with
disabilities. These programs provide essential support for the
state direct service programs and help the Administration and the
Congress understand and respond to disability issues.
Abortion
The Administration is pleased that the Subcommittee has
deleted objectionable language of the House bill that would
change existing law by allowing States to deny Medicaid funding
for abortions for victims of rape and incest. The Administration
strongly opposes any effort to curtail the ability of poor women
to choose abortion in cases of rape or incest. Likewise, we are
pleased that the Subcommittee has deleted objectionable House
language concerning private accreditation standards for medical
residency programs.
other Lanquage Provisions
The Administration supports the Subcommittee's decision to
delete many of the objectionable language provisions included in
the House bill, including striker replacement and political
advocacy provisions. Many of these riders would seriously
impinge upon the Executive Branch's flexibility to manage
programs and should not be included in an appropriations bill.
The Administration is pleased that the Subcommittee has
removed a provision contained in the House bill that would
prohibit funding of the Surgeon General position. We support the
Subcommittee in its recognition of the value of the leadership on
personal and societal health issues that the Surgeon General
provides our Nation.
5
We look forward to working with the Committee to address our
mutual concerns.
Sincerely,
One m. Rivlin
Alice M. Rivlin
Director
Identical Letters Sent to Honorable Mark O. Hatfield,
Honorable Robert C. Byrd, Honorable Arlen Specter,
and Honorable Tom Harkin
6
Clinton Presidential Records
Digital Records Marker
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a tabbed divider. Given our
digitization capabilities, we are sometimes unable to adequately
scan such dividers. The title from the original document is
indicated below.
TRANSPORTATION
Divider Title:
F
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
July 21, 1995
WASHINGTON, D.C. 20503
(House Floor)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED ACIENCIES.)
H.R. 2002 -- DEPARTMENT OF TRANSPORTATION
AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1996
(Sponsors: Livingston (R), Louisiana; Wolf (R), Virginia)
This Statement of Administration Policy provides the
Administration's views on H.R. 2002, the Department of
Transportation and Related Agencies Appropriations Bill, FY 1996,
as reported by the House Appropriations Committee.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays below
the FY 1995 enacted level. The Administration does not support
the level of funding assumed by the Committee's 602 (b)
allocations. The Administration must evaluate each bill both in
terms of funding levels provided and the share of total resources
available for remaining priorities. This bill is nearly $1.2
billion in budgetary resources above the President's request.
For this and for the reasons discussed below, the Administration
has serious objections to the Committee-reported bill.
In general, the Committee has sacrificed transportation
operating and research program funding in order to support
infrastructure programs. The Administration recognizes the
importance of infrastructure programs but believes that the
safety of the traveling public is equally important. The
Committee bill would make it difficult to continue.today's high
level of transportation safety.
The Administration's concerns over adequate funding for
transportation safety could be addressed within the overall
amounts proposed by the President. Funding offsets could be
found by funding infrastructure programs in the aggregate at the
President's requested level, including obligation limitations on
highway demonstration projects; eliminating unrequested and low-
priority programs, such as the Essential Air Service subsidy; and
adopting the Administration's proposal regarding the Coast Guard
Boat Safety program.
The Administration strongly supports a possible floor
amendment to the bill that would give the President line-item
veto authority to eliminate wasteful spending.
Coast Guard and Federal Aviation Administration (FAA) Operations
The Committee has reduced the requests for Coast Guard and
FAA operations by $52 million and $110 million, respectively.
The resulting funding levels would impair these agencies' safety
programs. The request for the Coast Guard already assumes $100
million in FY 1996 savings. Accelerating potential out-year
streamlining savings in FY 1996, as assumed by the Committee, is
unrealistic. As a result, marine safety programs would be
curtailed. The Committee's $110 million reduction to FAA
operations would limit FAA's safety activities and would likely
preclude the hiring of 253 additional safety inspectors, as
requested in the President's budget. It would be imprudent to
restrict these safety efforts when airline operations are again
on the rise.
Amtrak
The Administration supports the Committee's full funding of
the request for Amtrak's capital program. However, the
Committee's recommended total reduction of $317 million includes
severe cuts in Amtrak's operating subsidy, the Northeast Corridor
Improvement Program, and the Pennsylvania Station Redevelopment
Project. These decreases would force service reductions and
jeopardize Amtrak's ongoing efforts to cut costs in order to
attain financial stability. Amtrak is pursuing a five-year
restructuring plan to reduce its operating costs and has made
significant steps in FY 1995 toward that end. Specifically,
Amtrak has reduced by 25 percent both employment and mileage
served. The Administration has proposed legislative changes to
support Amtrak in its efforts. The funding levels proposed by
the Committee are insufficient to support Amtrak's needs for FY
1996.
Transit Capital and Operating Assistance
The Committee proposes to reduce transit operating
assistance from the request of $500 million to $400 million. The
President's request already reflects a 30-percent reduction in
operating assistance from the FY 1995 level. The Committee's
further reduction, along with the proposed reductions in transit
capital programs, would negatively impact transit services.
Service reductions would particularly hit small urban areas and
the working poor. The Administration's requested level for
operating assistance -- and a more balanced allocation of capital
funds across all modes -- is needed in order to avoid these
unwanted impacts.
2
Research and Technology
The Administration opposes the Committee's across-the-board
reductions in funding for research and technology. The Committee
bill would provide $702 million for research and technology
programs, a 37-percent reduction below the requested level.
These reductions, particularly for the Federal Aviation
Administration and the Federal Highway Administration, would
curtail efforts to increase the safety and efficiency of our
Nation's transportation system. Of particular concern is the
reduction of $170 million, or 48 percent, for the Intelligent
Transportation System (ITS), which would prevent the
"Trailblazer" initiative from moving forward. The Trailblazer
initiative would demonstrate both the core metropolitan mobility
ITS infrastructure and the core commercial vehicle ITS
infrastructure at three sites.
Moreover, the report accompanying the bill earmarks $40
million of the significantly reduced funding for 12 unrequested
ITS projects. These projects do not appear to serve critical
research, development, or testing needs. Some of the projects
identified in the report appear duplicative, while others appear
directed at unrelated needs, such as aviation research and
parking garage management. Given the significantly reduced
funding level proposed by the Committee, such earmarks should be
eliminated and funding targeted to higher priority ITS research
programs.
Earmarking
The Administration commends the Committee for its overall
restraint with respect to earmarking, in particular for not
including add-on funds for highway demonstration projects.
However, the Administration does object to the Committee's
earmarking of 18 transit new start projects that are not under
Full Funding Grant Agreements (FFGAs). The out-year cost to
complete these 18 projects would exceed $3 billion, this in
addition to the $2.5 billion in future costs to complete projects
that have already received FFGAs. The Committee's failure to
focus funds on existing new start projects under FFGAs risks
creating expectations that may be difficult to meet in the
current budget environment.
Language Provisions
The Administration opposes the repeal of transit employee
protections, commonly referred to as section 13 (c) protections,
and the abrogation of existing transit labor agreements. The
Administration supports reform of section 13 (c) implementation,
and the Department of Labor has published proposed comprehensive
revisions to the 13 (c) Guidelines. The proposed Guidelines will
3
make the certification process more predictable and timely by
establishing deadlines for processing grant applications. They
will also exempt routine replacement capital grants from certain
procedural requirements of Section 13 (c) to allow for a nearly
automatic certification. These proposed reforms balance the
needs of the transit industry and labor in a manner that is more
equitable and far less disruptive than an outright repeal of
employee protections. The Administration urges the House to
restore section 13 (c) and enable the Administration to continue
ongoing efforts to reform this program.
The Administration strongly opposes the provision of the
Committee bill that would prohibit any funds from being used for
changes in Corporate Average Fuel Economy (CAFE) standards. The
provision of the Committee bill would effectively dictate that
any CAFE rulemaking not deviate from existing standards. The
Administration believes that CAFE standards should be addressed
in an open rulemaking proceeding, currently underway, in which
relevant issues are being considered and in which all interested
persons/parties are able to participate in fashioning the
appropriate outcome.
The Administration opposes section 340 of the Committee
bill. This provision would require that Department of
Transportation employees who are eligible to retire and who now
receive workers' compensation benefits would have their workers'
compensation benefits eliminated and be forced to rely solely on
retirement benefits. In some cases, this could be only five
percent of the individual's current workers' compensation
benefit. This provision represents a major change in workers'
compensation policy and should be considered government-wide
rather than on an agency-by-agency basis.
The Administration objects to the restrictions on the use of
funds for employee training specified in section 338 of the
Subcommittee bill. While the language appears to be intended to
prevent inappropriate training activities, the Administration
believes that the provision could have the unintended consequence
of preventing a broad range of useful training. Particularly
during this period of downsizing and reinvention, agencies need
flexibility in training their employees for changes in the way
their jobs need to be performed or for new job responsibilities
in a rapidly changing work environment.
4
F
EXECUTIVE OFFICE OF THE PRESIDENT
THE UNITED
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 19, 1995
(House Rules)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 2002 -- DEPARTMENT OF TRANSPORTATION
AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1996
(Sponsors: Livingston (R), Louisiana; Wolf (R), Virginia)
This Statement of Administration Policy provides the
Administration's views on H.R. 2002, the Department of
Transportation and Related Agencies Appropriations Bill, FY 1996,
as reported by the House Appropriations Committee.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays below
the FY 1995 enacted level. The Administration does not support
the level of funding assumed by the Committee's 602 (b)
allocations. The Administration must evaluate each bill both in
terms of funding levels provided and the share of total resources
available for remaining priorities. This bill is nearly $1.2
billion in budgetary resources above the President's request.
For this and for the reasons discussed below, the Administration
has serious objections to the Committee-reported bill.
In general, the Committee has sacrificed transportation
operating and research program funding in order to support
infrastructure programs. The Administration recognizes the
importance of infrastructure programs but believes that the
safety of the traveling public is equally important. The
Committee bill would make it difficult to continue today's high
level of transportation safety.
The Administration's concerns over adequate funding for
transportation safety could be addressed within the overall
amounts proposed by the President. Funding offsets could be
found by funding infrastructure programs in the aggregate at the
President's requested level, including obligation limitations on
highway demonstration projects; eliminating unrequested and low-
priority programs, such as the Essential Air Service subsidy; and
adopting the Administration's proposal regarding the Coast Guard
Boat Safety program.
Coast Guard and Federal Aviation Administration (FAA) Operations
The Committee has reduced the requests for Coast Guard and
FAA operations by $52 million and $110 million, respectively.
The resulting funding levels would impair these agencies' safety
programs. The request for the Coast Guard already assumes $100
million in FY 1996 savings. Accelerating potential out-year
streamlining savings in FY 1996, as assumed by the Committee, is
unrealistic. As a result, marine safety programs would be
curtailed. The Committee's $110 million reduction to FAA
operations would limit FAA's safety activities and would likely
preclude the hiring of 253 additional safety inspectors, as
requested in the President's budget. It would be imprudent to
restrict these safety efforts when airline operations are again
on the rise.
Amtrak
The Administration supports the Committee's full funding of
the request for Amtrak's capital program. However, the
Committee's recommended total reduction of $317 million includes
severe cuts in Amtrak's operating subsidy, the Northeast Corridor
Improvement Program, and the Pennsylvania Station Redevelopment
Project. These decreases would force service reductions and
jeopardize Amtrak's ongoing efforts to cut costs in order to
attain financial stability. Amtrak is pursuing a five-year
restructuring plan to reduce its operating costs and has made
significant steps in FY 1995 toward that end. Specifically,
Amtrak has reduced by 25 percent both employment and mileage
served. The Administration has proposed legislative changes to
support Amtrak in its efforts. The funding levels proposed by
the Committee are insufficient to support Amtrak's needs for FY
1996.
Transit Capital and Operating Assistance
The Committee proposes to reduce transit operating
assistance from the request of $500 million to $400 million. The
President's request already reflects a 30-percent reduction in
operating assistance from the FY 1995 level. The Committee's
further reduction, along with the proposed reductions in transit
capital programs, would negatively impact transit services.
Service reductions would particularly hit small urban areas and
the working poor. The Administration's requested level for
operating assistance -- and a more balanced allocation of capital
funds across all modes -- is needed in order to avoid these
unwanted impacts.
2
Research and Technology
The Administration opposes the Committee's across-the-board
reductions in funding for research and technology. The Committee
bill would provide $702 million for research and technology
programs, a 37-percent reduction below the requested level.
These reductions, particularly for the Federal Aviation
Administration and the Federal Highway Administration, would
curtail efforts to increase the safety and efficiency of our
Nation's transportation system. Of particular concern is the
reduction of $170 million, or 48 percent, for the Intelligent
Transportation System (ITS), which would prevent the
"Trailblazer" initiative from moving forward. The Trailblazer
initiative would demonstrate both the core metropolitan mobility
ITS infrastructure and the core commercial vehicle ITS
infrastructure at three sites.
Moreover, the report accompanying the bill earmarks $40
million of the significantly reduced funding for 12 unrequested
ITS projects. These projects do not appear to serve critical
research, development, or testing needs. Some of the projects
identified in the report appear duplicative, while others appear
directed at unrelated needs, such as aviation research and
parking garage management. Given the significantly reduced
funding level proposed by the Committee, such earmarks should be
eliminated and funding targeted to higher priority ITS research
programs.
Earmarking
The Administration commends the Committee for its overall
restraint with respect to earmarking, in particular for not
including add-on funds for highway demonstration projects.
However, the Administration does object to the Committee's
earmarking of 18 transit new start projects that are not under
Full Funding Grant Agreements (FFGAs). The out-year cost to
complete these 18 projects would exceed $3 billion, this in
addition to the $2.5 billion in future costs to complete projects
that have already received FFGAs. The Committee's failure to
focus funds on existing new start projects under FFGAs risks
creating expectations that may be difficult to meet in the
current budget environment.
Language Provisions
The Administration opposes the repeal of transit employee
protections, commonly referred to as section 13 (c) protections,
and the abrogation of existing transit labor agreements. The
Administration supports reform of section 13 (c) implementation,
and the Department of Labor has published proposed comprehensive
revisions to the 13 (c) Guidelines. The proposed Guidelines will
3
make the certification process more predictable and timely by
establishing deadlines for processing grant applications. They
will also exempt routine replacement capital grants from certain
procedural requirements of Section 13 (c) to allow for a nearly
automatic certification. These proposed reforms balance the
needs of the transit industry and labor in a manner that is more
equitable and far less disruptive than an outright repeal of
employee protections. The Administration urges the House to
restore section 13 (c) and enable the Administration to continue
ongoing efforts to reform this program.
The Administration strongly opposes the provision of the
Committee bill that would prohibit any funds from being used for
changes in Corporate Average Fuel Economy (CAFE) standards. The
provision of the Committee bill would effectively dictate that
any CAFE rulemaking not deviate from existing standards. The
Administration believes that CAFE standards should be addressed
in an open rulemaking proceeding, currently underway, in which
relevant issues are being considered and in which all interested
persons/parties are able to participate in fashioning the
appropriate outcome.
The Administration opposes section 340 of the Committee
bill. This provision would require that Department of
Transportation employees who are eligible to retire and who now
receive workers' compensation benefits would have their workers'
compensation benefits eliminated and be forced to rely solely on
retirement benefits. In some cases, this could be only five
percent of the individual's current workers' compensation
benefit. This provision represents a major change in workers'
compensation policy and should be considered government-wide
rather than on an agency-by-agency basis.
The Administration objects to the restrictions on the use of
funds for employee training specified in section 338 of the
Subcommittee bill. While the language appears to be intended to
prevent inappropriate training activities, the Administration
believes that the provision could have the unintended consequence
of preventing a broad range of useful training. Particularly
during this period of downsizing and reinvention, agencies need
flexibility in training their employees for changes in the way
their jobs need to be performed or for new job responsibilities
in a rapidly changing work environment.
4
PRESIDENT -
EXECUTIVE OFFICE OF THE PRESIDENT
TINIFED
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
SECURITY
THE DIRECTOR
August 1, 1995
Honorable Mark O. Hatfield
Chairman
Committee on Appropriations
United States Senate
Washington, D.C. 20510
Dear Mr. Chairman:
The purpose of this letter is to provide the
Administration's views on H.R. 2002, the Department of
Transportation and Related Agencies Appropriations Bill, FY
1996, as passed by the House. As the Senate develops its
version of the bill, your consideration of the Administration's
views would be appreciated.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays
below the FY 1995 enacted level. The Administration does not
support the level of funding assumed by the House or Senate
Committee 602 (b) allocations. The Administration must evaluate
each bill both in terms of funding levels provided and the
share of total resources available for remaining priorities.
The House bill is nearly $1.2 billion in budgetary resources
above the President's request. For this and for the reasons
discussed below, the Administration has serious objections to
the House-passed bill.
In general, the House has sacrificed transportation
operating and research program funding in order to support
infrastructure programs. The Administration recognizes the
importance of infrastructure programs but believes that the
safety of the traveling public is equally important. The
House-passed bill would make it difficult to continue today's
high level of transportation safety.
The Administration's concerns over adequate funding for
transportation safety could be addressed within the overall
amounts proposed by the President. Funding offsets could be
found by funding infrastructure programs in the aggregate at
the President's requested level, including obligation
limitations on highway demonstration projects; eliminating
unrequested and low-priority programs, such as the Essential
Air Service subsidy; and adopting the Administration's proposal
regarding the Coast Guard Boat Safety program.
Coast Guard and Federal Aviation Administration (FAA)
Operations
The House has reduced the requests for Coast Guard and FAA
operations by $52 million and $110 million, respectively. The
resulting funding levels would impair these agencies' safety
programs. The request for the Coast Guard already assumes $100
million in FY 1996 savings. Accelerating potential out-year
streamlining savings in FY 1996, as assumed by the House, is
unrealistic. As a result, marine safety programs would be
curtailed. The House's $110 million reduction to FAA
operations would limit FAA's safety activities and would likely
preclude the hiring of 253 additional safety inspectors, as
requested in the President's budget. It would be imprudent to
restrict these safety efforts when airline operations are again
on the rise.
Amtrak
The Administration supports the House's full funding of
the request for Amtrak's capital program. However, the House's
recommended total reduction of $317 million includes severe
cuts in Amtrak's operating subsidy, the Northeast Corridor
Improvement Program, and the Pennsylvania Station Redevelopment
Project. These decreases would force service reductions and
jeopardize Amtrak's ongoing efforts to cut costs in order to
attain financial stability. Amtrak is pursuing a five-year
restructuring plan to reduce its operating costs and has made
significant steps in FY 1995 toward that end. Specifically,
Amtrak has reduced by nearly 25 percent both employment and
mileage served. The Administration has proposed legislative
changes to support Amtrak in its efforts. The funding levels
proposed by the House are insufficient to support Amtrak's
needs for FY 1996.
Transit Capital and Operating Assistance
The House proposes to reduce transit operating assistance
from the request of $500 million to $400 million. The
President's request already reflects a 30-percent reduction in
operating assistance from the FY 1995 level. The House's
further reduction, along with the proposed reductions in
transit capital programs, would negatively impact transit
services. Service reductions would particularly hit small
urban areas and the working poor. The Administration's
requested level for operating assistance -- and a more balanced
allocation of capital funds across all modes -- is needed in
order to avoid these unwanted impacts.
2
Research and Technology
The Administration opposes the House's across-the-board
reductions in funding for research and technology. The House-
passed bill would provide $702 million for research and
technology programs, a 37-percent reduction below the requested
level.
These reductions, particularly for the Federal Aviation
Administration and the Federal Highway Administration, would
curtail efforts to increase the safety and efficiency of our
Nation's transportation system. of particular concern is the
reduction of $170 million, or 48 percent, for the Intelligent
Transportation System (ITS), which would prevent the
"Trailblazer" initiative from moving forward. The Trailblazer
initiative would demonstrate both the core metropolitan
mobility ITS infrastructure and the core commercial vehicle ITS
infrastructure at three sites.
Moreover, the report accompanying the bill earmarks $40
million of the significantly reduced funding for 12 unrequested
ITS projects. These projects do not appear to serve critical
research, development, or testing needs. Some of the projects
identified in the report appear duplicative, while others
appear directed at unrelated needs, such as aviation research
and parking garage management. Given the significantly reduced
funding level proposed by the House, such earmarks should be
eliminated and funding targeted to higher priority ITS research
programs.
Earmarking
The Administration commends the House for its overall
restraint with respect to earmarking, in particular for not
including add-on funds for highway demonstration projects.
However, the Administration does object to the House's
earmarking of 18 transit new start projects that are not under
Full Funding Grant Agreements (FFGAs). The out-year cost to
complete these 18 projects would exceed $3 billion; this in
addition to the $2.5 billion in future costs to complete
projects that have already received FFGAs. The House's failure
to focus funds on existing new start projects under FFGAS risks
creating expectations that may be difficult to meet in the
current budget environment.
Language Provisions
The Administration strongly opposes the provision of the
House-passed bill that would prohibit any funds from being used
for changes in Corporate Average Fuel Economy (CAFE) standards.
The provision of the House-passed bill would effectively
dictate that any CAFE rulemaking not deviate from existing
3
standards. The Administration believes that CAFE standards
should be addressed in an open rulemaking proceeding, currently
underway, in which relevant issues are being considered and in
which all interested persons/parties are able to participate in
fashioning the appropriate outcome.
The Administration opposes section 340 of the House-passed
bill. This provision would require that Department of
Transportation employees who are eligible to retire and who now
receive workers' compensation benefits would have their
workers' compensation benefits eliminated and be forced to rely
solely on retirement benefits. In some cases, this could be
only five percent of the individual's current workers'
compensation benefit. This provision represents a major change
in workers' compensation policy and should be considered
government-wide rather than on an agency-by-agency basis.
The Administration objects to the restrictions on the use
of funds for employee training specified in section 338 of the
House-passed bill. While the language appears to be intended
to prevent inappropriate training activities, the
Administration believes that the provision could have the
unintended consequence of preventing a broad range of useful
training.
We look forward to working with the Committee to address
our mutual concerns.
Sincerely,
Clium.D.R
Alice M. Rivlin
Director
Identical Letters Sent to Honorable Mark O. Hatfield,
Honorable Robert C. Byrd, and Honorable Frank R. Lautenberg
4
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
STATE
THE DIRECTOR
September 13, 1995
Honorable Robert C. Byrd
Committee on Appropriations
United States Senate
Washington, D.C. 20510
Dear Senator Byrd:
The purpose of this letter is to provide the
Administration's views on H.R. 2002, the Department of
Transportation and Related Agencies Appropriations Bill, FY 1996,
as passed by the House and by the Senate. We believe that a
fiscally responsible bill that both the Congress and the
President can support is attainable. As you develop the
conference version of the bill, your consideration of the
Administration's views would be appreciated.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays below
the FY 1995 level. The Administration prefers the overall
spending level provided by the Senate version of the bill
compared to the House version. While the House bill is over $1.1
billion in budgetary resources above the President's request, the
Senate bill is, on a comparable basis, approximately at the
overall level requested by the President.
Aviation Safety
The Administration has serious concerns that the funding
level for Federal Aviation Administration (FAA) Operations would
make it difficult to continue today's high levels of aviation
safety. The Administration's highest priority is that FAA
Operations be funded at the requested level. We note that this
funding level can be achieved within the overall level of
spending requested in the President's budget. These funds are
necessary to maintain controller staffing levels, hire 253
additional safety inspectors, and address aviation security
needs. Recent events underscore the urgency of fully funding the
FAA.
Presidential Initiatives
The Administration strongly supports the Senate's efforts to
provide the Department of Transportation with flexibility to
carry out its programs more efficiently in light of constrained
resources. In particular, the Administration supports fast-track
authority for a departmental reorganization plan and FAA reform,
which the Administration has proposed as part of a comprehensive
FAA reauthorization bill. Procurement and personnel reform are
central elements of FAA's plans to meet workload increases
resulting from long-term growth in aviation activity.
Similarly the Administration strongly supports the Senate's
inclusion of the Administration's State Infrastructure Bank (SIB)
proposal. SIBs will enable States and local governments to
leverage existing funds to expand infrastructure development.
In addition, the Administration strongly supports the Senate
provision that would designate the National Highway System (NHS),
thereby ensuring that Federal highway funding would continue to
flow without interruption to the States. Failure to designate.
the NHS by September 30, 1995, would result in over $6 billion in
FY 1996 highway funds being withheld from the States. This is a
circumstance that clearly can and should be avoided.
The conferees are strongly encouraged to retain these
provisions in the final bill.
Transit Operating Assistance
The conferees are urged to fund transit operating assistance
at the level requested by the President. The President's request
already reflects a 30-percent reduction in operating assistance
from the FY 1995 level, based on a proposed program change. The
further reduction proposed by the House and Senate would likely
result in service cuts and fare increases that would
disproportionately affect small areas and the working poor.
Overall Funding Priorities
The Administration is pleased with the more balanced
approach that the Senate has taken to infrastructure spending
across modes and the Senate's support for research and
development. The House has sacrificed transportation operating
and research program funding in order to support infrastructure
spending. While infrastructure spending is important, the
Administration is concerned with the House's reductions to marine
safety and aviation research. In order to maintain safety
levels, the Administration urges the conferees to fund FAA
research and Coast Guard Operating Expenses at levels more
closely approximating the Administration's request.
Amtrak
The Administration has serious concerns regarding the House
and Senate funding levels for Amtrak. Decreases provided in both
versions of the bill would force service reductions and
jeopardize Amtrak's ongoing efforts to cut costs in order to
attain financial stability. Amtrak is pursuing a five-year
restructuring plan to reduce its operating costs and has made
significant steps in FY 1995 toward that end. Specifically,
Amtrak has reduced by nearly 25 percent both employment and
mileage served. The Administration has proposed legislative
changes to support Amtrak in its efforts.
2
Language Provisions
The Administration objects to section 339. Although
slightly different in the House and Senate versions of the bill,
this provision would eliminate workers' compensation benefits for
Department of Transportation employees who are currently
receiving those benefits and are eligible to retire. These
employees would be forced to rely solely on retirement benefits,
which in some cases may be only five percent of an employee's
current compensation benefit. This provision represents a major
change in workers' compensation policy and should not be
considered on an agency-by-agency basis in particular
appropriations bills. The Administration strongly urges the
deletion of the provision. While the Senate version of the
provision is less objectionable because it would provide
employment credit for time spent on workers' compensation rolls,
the Administration is opposed to including either version of the
provision in this bill.
A provision of the House-passed bill would prohibit funds
from being used for changes in the Corporate Average Fuel Economy
Standards (CAFE). The conferees are strongly urged not to
include this provision. The Administration believes that CAFE
standards should be addressed in an open rulemaking proceeding
where relevant issues are considered and in which all interested
persons/parties are able to participate in fashioning the
appropriate outcome.
Particularly during this time of downsizing and reinvention,
flexibility in employee training is required. The conferees are
urged to include the training-related provision of the Senate-
passed bill, in lieu of the overly restrictive provision
contained in the House-passed bill.
The Administration is on record as supporting procurement
reform for the FAA due to the FAA's special operating
circumstances. We would note that this support should not be
viewed as precedent for the Administration's views on other
possible proposals for exemptions from procurement rules.
Sincerely,
Oice m. Rivlin
Alice M. Rivlin
Director
Identical Letters Sent to Honorable Bob Livingston,
Honorable David R. Obey, Honorable Frank R. Wolf,
Honorable Ronald D. Coleman, Honorable Mark O. Hatfield,
Honorable Robert C. Byrd, and Honorable Frank R. Lautenberg
3
F
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
OFFICE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
August 9, 1995
SECURITY
WASHINGTON, D.C. 20503
STATES
(Senate Floor)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 2002 -- DEPARTMENT OF TRANSPORTATION
AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1996
(Sponsor: Hatfield (R), Oregon)
This Statement of Administration Policy provides the
Administration's views on H.R. 2002, the Department of
Transportation and Related Agencies Appropriations Bill, FY 1996,
as reported by the Senate Appropriations Committee.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays below
the FY 1995 level. For this reason, the Administration prefers
the overall spending level provided by the Senate bill, which
approximates the President's request for total resources, to the
House level, which is nearly $1.7 billion in budgetary resources
above the President's request.
The Administration strongly supports the Committee's efforts
to provide the Department with flexibility to carry out its
programs more efficiently in light of constrained resources.
This includes both the Federal Aviation Administration (FAA)
personnel and procurement reform and the fast-track authority for
a departmental reorganization plan. Similarly, the
Administration strongly supports the Committee's inclusion of the
Administration's State Infrastructure Bank (SIB) proposal. SIBs
will enable States and local governments to leverage existing
funds to expand infrastructure development.
The Administration appreciates that the Senate has addressed
several of the Administration's concerns regarding the House-
passed bill. In particular, the Administration supports the more
balanced approach that the Senate has taken to infrastructure
funding across modes and the Senate's support for research and
development.
However, the Administration has some concerns with the
Senate Committee bill, which are discussed below. The
Administration's concerns could be addressed within the amounts
proposed by the President. Funding offsets could be found by
including obligation limitations on highway demonstration™
projects and by eliminating unrequested and low-priority
programs, such as the Essential Air Service subsidy.
Federal Aviation Administration Operations
The Committee has reduced the request for FAA Operations by
$160 million. With such a reduced funding level, the FAA's
safety activities would be restricted, and it would likely be
unable to hire the 253 additional safety inspectors requested in
the President's budget. It would be imprudent to restrict these
safety efforts when airline operations are again on the rise.
The Administration strongly supports the authority provided
by the Committee for the FAA to collect over $10 million in new
offsetting collections. Users of the aviation system who receive
specialized services from the FAA should contribute directly to
the cost of those services.
Amtrak
The Administration has serious concerns regarding the
Committee's overall reduction of $283 million in funding for
Amtrak. This includes severe cuts in Amtrak's operating subsidy,
capital program, and the Northeast Corridor Improvement Program.
These decreases would force service reductions and jeopardize
Amtrak's ongoing efforts to cut costs in order to attain
financial stability. Amtrak is pursuing a five-year
restructuring plan to reduce its operating costs and has made
significant steps in FY 1995 toward that end. Specifically,
Amtrak has reduced both employment and mileage served by 25
percent. The Administration has proposed legislative changes to
support Amtrak in its efforts. The funding levels proposed by
the Committee are insufficient to support Amtrak's needs for FY
1996.
Transit Capital and Operating Assistance
The Committee proposes to reduce transit operating
assistance by $100 million, from the request of $500 million to
$400 million. The President's request already reflects a 30-
percent reduction in operating assistance from the FY 1995 level.
The Committee's further reduction, along with the proposed
reductions in transit capital programs, would negatively impact
transit services. Service reductions would particularly hit the
working poor, the disabled, and elderly and young people. The
Administration's requested funding level for operating assistance
-- and a more balanced allocation of capital funds across all
modes -- is needed in order to avoid these unwanted impacts.
Interstate Commerce Commission Transition Costs
The Committee did not provide funds for the severance pay
and other closeout costs associated with the sunset of the
Interstate Commerce Commission (ICC). While the Administration
strongly supports the elimination of the ICC, having proposed it
in the FY 1996 Budget, adequate closeout costs need to be
provided.
2
Language Provisions
The Administration opposes section 339 of the Committee
bill. This provision would require that Department of
Transportation employees who are eligible to retire and who now
receive workers' compensation benefits have their workers'
compensation benefits eliminated and be forced to rely solely on
retirement benefits after March 31, 1996. In some cases, this
could be only five percent of the individual's current workers'
compensation benefit. This provision represents a major change
in workers' compensation policy and should be considered
government-wide rather than on an agency-by-agency basis.
The Administration supports the provision of the Committee
bill that would require debt service in airport-related projects
to be paid before Passenger Facility Charges are terminated. The
Administration believes that this proposal would enhance the
function of Passenger Facility Charges as a valuable financing
tool in a time of reduced resources.
3
Clinton Presidential Records
Digital Records Marker
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a tabbed divider. Given our
digitization capabilities, we are sometimes unable to adequately
scan such dividers. The title from the original document is
indicated below.
AGRICULTURE
Divider Title:
WIC
The Special Supplemental Nutrition Program for Women,
Infants, and Children (WIC) would be funded at $260 million above
the FY 1995 appropriation. The Administration appreciates the
Subcommittee's support for this important program. However, we
strongly oppose the Subcommittee's proposal to cap WIC
participation. The Administration's goal is to serve 7.5 million
persons by the end of FY 1996 while the Subcommittee would cap
participation at 7.3 million. A participation cap, rather than a
dollar cap, could provide a perverse incentive to States to spend
funds on items they otherwise would not. This would decrease
cost containment. In addition, the Subcommittee bill would limit
administrative funding to $920 million, $70 million below the
Administration's estimate of what is necessary to provide health
and nutrition services. The Subcommittee's proposal could erode
the positive impacts WIC has for low-income women, infants, and
children. We urge the Committee to remove these unnecessary
constraints from this essential health and nutrition program.
Export Assistance Programs
The Administration strongly objects to Subcommittee
reductions in key export assistance programs that could
disadvantage exports of U.S. commodities. In particular, the
Subcommittee would reduce the Export Enhancement Program (EEP) to
$800 million, $159 million below the Administrations's request
and the GATT-permissible level. These export subsidies are
needed to combat the excessive subsidy levels provided by the
European Union for its agricultural exports.
In addition, the Subcommittee mark for the Foreign
Agricultural Service (FAS) is $5.7 million below the request. In
its request, the Administration has included additional FAS funds
in order to expand the presence of U.S. agriculture overseas and
increase GATT-compatible, "greenbox" spending for agricultural
promotion. Maintaining adequate export funding is essential in
order to maintain the momentum of increased agricultural exports
that has been achieved.
Conservation Reserve Program (CRP)
The Subcommittee appropriation would block any FY 1996 sign-
up for new CRP acreage. This action would preclude the statutory
goal of 38 million CRP acres from being reached. In a year when
the farm bill will undoubtedly address CRP re-authorization, it
is inappropriate for appropriations action to preclude sign-ups
for the first year of the new farm bill. In addition, not being
able to retire vulnerable cropland through the CRP would make
clean water goals more difficult to achieve, provide less habitat
for wildlife and migratory birds, and decrease farm commodity
2
prices, while increasing CCC outlays. In light of the large
amount of acreage that is soon to expire from the CRP (over 15
million acres at the end of FY 1996), additional sign-ups must be
permitted in order to retain the program's benefits.
Rural Development Initiative
The Subcommittee would significantly reduce funding for
programs included in the Administration's Rural Development
Initiative. The Subcommittee would provide $3.9 billion in loans
for housing, essential infrastructure, and business assistance.
This level is $700 million, or 15 percent, less than the FY 1996
Budget request and $140 million, or three percent, less than the
FY 1995 enacted level. In particular, direct loans for single-
family housing would be reduced by $300 million from the
Administration's request, preventing 4,500 low- and very-low-
income rural families from becoming homeowners.
The Subcommittee mark would also reduce rural development
grants by $223 million, or 18 percent, from the requested level.
Most of this reduction would be from requested levels for water
and wastewater loans and grants. Funding the Rural Development
Initiative at the requested level is essential to helping rural
communities meet several critical goals, such as sufficient
affordable housing, safe drinking water, adequate wastewater
treatment facilities, and increased rural employment.
We commend the Subcommittee for embracing the concept of the
Administration's Rural Development Performance Partnership.
However, the bill would combine only water and wastewater loans
and grants into the partnership, whereas the Administration has
proposed to include 14 programs in the initiative. We urge the
Committee to provide greater flexibility in assistance to rural
America by including more programs under the partnership.
Food and Drug Administration
The President's budget proposes language to permit the Food
and Drug Administration (FDA) to collect new user fees for
medical device review and import inspection. The language
references the government's general user fee authority, 31 U.S.C.
9701, as one potential authority for these collections. The
Subcommittee bill would limit the ability of the FDA to ensure
the proper and most efficient uses of its resources through the
recovery of full value for its services to industry. The
Administration urges the Committee to permit the FDA to collect
and use these user fees.
3
P.L. 480
The Subcommittee has funded P.L. 480 in excess of the
President's request. In particular, the funding level for Title
I is $115 million above the President's request level. Title I
has been shown to have limited effectiveness in advancing its
goal of market development. The Administration urges the
Committee to reduce this program so that higher priority programs
can be funded.
The Administration regrets that the Subcommittee has not
funded the request of $1.5 million for the cost of reducing the
P.L. 480 Title I debt of the poorest, heavily indebted countries.
This is an important element of multilateral action by the
creditor community to support policy reforms and improve growth
and export opportunities in these countries. The President has
agreed, at both the Naples and Halifax G-7 Summits, to
participate in this multilateral endeavor. The Administration
urges the Committee to support this request.
Additional Administration concerns with the bill as reported
by the Subcommittee are contained in the enclosure. We look
forward to working with the Committee to address our mutual
concerns.
Sincerely,
Clice m. Rivlin
Alice M. Rivlin
Director
Enclosure
Identical Letters Sent to Honorable Bob Livingston,
Honorable David R. Obey, Honorable Joseph Skeen,
and Honorable Richard J. Durbin
4
Enclosure
(House Committee)
ADDITIONAL CONCERNS
AGRICULTURE, RURAL DEVELOPMENT,
FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES
APPROPRIATIONS BILL, FY 1995
(AS REPORTED BY THE HOUSE SUBCOMMITTEE)
The Administration looks forward to working with the Congress
later in the process in an effort to address the following
concerns:
Department of Agriculture
Wetlands Reserve Program (WRP). The Subcommittee bill
would hold the WRP sign-ups in FY 1996 to only 100,000
acres, at an estimated program cost of $77 million.
This is well below the Administration's request for
300,000 acres and $210 million in direct (mandatory)
spending. The lower level of funding for this program,
which provides long-term and permanent easements for
restored wetlands, would make the Administration's goal
of achieving and surpassing the no-net-loss of wetlands
more difficult. Also, by restricting acreage rather
than funds, the incentive to seek lower-priced lands
would be reduced. The Administration urges the
Committee to fund this program fully.
Rural Telephone Bank (RTB) Privatization. The
Administration encourages the Committee to reconsider
the Subcommittee mark for RTB privatization. The mark
would severely impede privatization efforts by placing
a limitation of five percent on the amount of Federal
stock that can be retired in FY 1996. Current law sets
a minimum of five percent retirement per year beginning
in FY 1996, and the Subcommittee would set the maximum
at five percent. The Administration will submit the
appropriate authorizing legislation in the near future.
This legislation will address the concerns raised by
the Subcommittee in its report. We urge the Committee
to allow the balances in the RTB "equity fund" to be
used to repurchase government-held stock in the RTB,
and allow the RTB privatization to be accelerated,
consistent with a smaller, streamlined Government.
Hazard Analysis and Critical Control Point (HACCP)
program. The Administration is aware that an amendment
may be proposed to the Committee that would mandate
negotiated rulemaking for the Department's proposed
HACCP program. The Administration would oppose such an
amendment. Although the Administration supports the
use of negotiated rulemaking to ensure effective
regulation, the choice of when negotiated rulemaking
would be a more effective process should be determined
by the agency officials involved in the specific
rulemaking process. The proposed HACCP and Pathogen
Reduction rule that the Administration published in
February 1995 is an important step to guarantee the
safety of meat and poultry products. Requiring that
the agency undertake a negotiated rulemaking at this
time could significantly delay the modernization of the
Nation's meat and poultry inspection system.
Food and Consumer Service. The Subcommittee has
provided the Administration's request for the Nutrition
Assistance Program to Puerto Rico. While the
Subcommittee bill would not provide for a transfer of
funds to the Animal and Plant Health Inspection Service
for the cattle tick eradication project, the
Subcommittee report notes that Puerto Rico has the
authority to continue to fund the project within
available funds. The purpose of the block grant as
described in the Food Stamp Act is to "finance 100% of
the expenditures for food assistance provided to needy
persons and 50% of the administrative expenses related
to the provision of the assistance." The
Administration does not share the Subcommittee's view
that funding a cattle tick eradication project is an
appropriate use of funds intended to assist low-income
Puerto Ricans.
The Subcommittee report directs that $65 million be
used for the food distribution program on Indian
reservations. The Administration's request is $14
million higher based on projections of the number of
Indians who will participate in the program. The
Administration can work with the participating tribes
"to convert this population to the food stamp program,"
but, under the law, it cannot force recipients to
switch programs. The amount recommended by the
Subcommittee may not be adequate to provide assistance
to those Indians who continue to choose to participate
in the commodities program. In addition, encouraging
USDA to move Indians from the commodities program to
Food Stamps would increase Federal costs since the
average benefit cost is higher in Food Stamps than in
the commodities program.
The Subcommittee, in report language, would provide $5
million in support for the School Meals Initiative.
The Administration has requested $26 million to help
schools comply with Dietary Guidelines, as mandated by
2
the Healthy Meals for Healthy Americans Act. The
Administration urges the Committee to provide
additional funding for the School Meals Initiative.
The Subcommittee bill does not provide the requested $4
million for an ADP infrastructure investment. The
Administration believes that funding in this area is
prudent as it will assist the agency to manage with
less -- through long-term increased efficiencies. The
Administration urges the Committee to provide the ADP
funding.
Federal Lab Closures. The Administration has proposed
closing 12 Federal agricultural research fácilities and
re-targeting the funding to current, higher-priority
research projects. The Subcommittee report states that
only five facilities should be closed, three facilities
should be relegated to alternate work sites, and the
four remaining facilities kept open. Micromanagement
such as this makes it difficult for the Department to
manage its research programs to meet the highest
priority food, agricultural, and environmental needs.
The Administration urges the Committee to reverse the
Subcommittee action.
Info Share. The Administration has requested $59
million as a direct appropriation for Info Share. The
Subcommittee has provided $7.5 million, based upon the
assumption that a contract for telecommunications would
not be let until late in FY 1996. However, at the
funding level approved by the Subcommittee,
telecommunications investments in the new county
service centers would be curtailed. In addition, Info
Share expenditures involve more than a
telecommunications contract. Under the Subcommittee
mark, all other Info Share program areas would be
eliminated, such as business process re-engineering and
planning for management changes. The Subcommittee
recognizes the importance of this initiative to
improving field office operations and customer service,
and the Administration urges the Committee to include
Info Share funding at the requested level.
Office of the Chief Financial Officer. The
Administration has requested an increase of $819
thousand to support policy improvement activities
required by the Chief Financial Officers Act. This
increase was not provided by the Subcommittee.
Consequently, preparation and review of audited
financial statements might be delayed beyond their
statutory deadlines, quality implementation of GAO and
Inspector General audit recommendations would be at
3
risk, and Departmental support for implementation of
major new policies, such as installing performance
measures in bureau systems, would remain nominal. The
Administration urges the Committee to fund fully this
program.
User Fee Proposals. The Subcommittee has not provided
appropriations language for user fees proposed in the
marketing and regulatory programs area. The
Administration has proposed fees of $8 million in the
Animal and Plant Health Inspection Service (AMS), $4
million in the Agricultural Marketing Service, and $17
million in the Grain Inspection, Packers and Stockyards
Administration. Although the Subcommittee bill would
continue to allow the collection of fees for AMS
standardization activities, it would not allow the
collections to be credited to the appropriations
account, as requested in the FY 1996 Budget. The
Administration urges the Committee to reverse this
action.
4
F
EXECUTIVE OFFICE OF THE PRESIDENT
STATEMENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 18, 1995
(House Floor)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 1976 -- AGRICULTURE, RURAL DEVELOPMENT,
FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES
APPROPRIATIONS BILL, FY 1996
(Sponsors: Livingston (R), Louisiana; Skeen (R), New Mexico)
This Statement of Administration Policy provides the
Administration's views on H.R. 1976, the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Bill, FY 1996, as reported by the House
Appropriations Committee.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays below
the FY 1995 enacted level. The Administration supports reducing
spending but does not share the priorities reflected in the
Committee's mark or support the level of funding assumed by the
Committee's 602 (b) allocations.
For the reasons discussed below, the Secretary of
Agriculture and the Director of the Office of Management and
Budget would recommend that the President veto H.R. 1976 if it
were presented to him in its current form.
Reductions in Rural Development Funds
The Administration understands that an en bloc amendment may
be offered to remove certain provisions in the Committee bill
that would reduce mandatory spending. The Administration
supports the deletion of these items. The amendment would permit
spending for the Export Enhancement Program to be funded at the
level agreed to in the GATT implementing legislation, which was
part of the Administration's commitment made during negotiations
on that legislation. Another of those commitments, continued
sign-ups for the Conservation Reserve Program, would also be
permitted under the en bloc amendment, as would the
Administration's request for the Wetlands Reserve Program. The
Administration strongly supports these vital programs that
provide both environmental and farm income benefits.
However, the amendment would make deeper, unacceptable
reductions in rural development programs. These high-priority
programs are part of the Administration's Rural Development
Initiative, and they form an integral part of the proposed Rural
Development Performance Partnership program. The amendment would
reduce rural water and wastewater loans and grants to $435
million. This would represent a 45-percent reduction from the
request level and a 35-percent reduction from FY 1993 levels.
The amendment would also terminate the Intermediary
Relending Program, which provides State-sponsored rural
development intermediaries with program funds that can be
tailored to individual community and regional needs. In
addition, single-family housing direct loans would be reduced to
$500 million under the amendment, a 50-percent reduction to the
request. This would represent the lowest level for these housing
loans in 30 years, and would deny thousands of rural low-income
families the opportunity to become homeowners.
Food Stamps
The Committee bill would undermine the essential nature of
the Food Stamp Program -- its ability to respond to increased
need during times of economic downturn. For the last five years,
the Committee has provided a benefit reserve or "cushion" to
guard against an unexpected economic downturn or estimating
errors. The bill would remove this cushion, placing all food
stamp recipients in jeopardy of reduced benefits due to a
regional recession. The Administration urges the House to
maintain the food stamp benefit reserve, which is essential to
this national nutrition safety net.
The Administration urges the deletion of language in the
Committee bill that would freeze the food stamp standard
deduction at the FY 1995 level. The Administration understands
that the Committee anticipates savings of $190 million in FY 1996
due to this action. This proposal is similar to one included in
the House-passed welfare reform bill (H.R. 4), and that bill
already has claimed similar savings. Shifting these savings to
the discretionary side of the budget would put pressure on the
authorizing committees to replace these lost savings by making
further cuts in assistance to needy individuals.
WIC
Under the Committee's proposals, the Special Supplemental
Nutrition Program for Women, Infants, and Children (WIC) would be
funded at $260 million above the FY 1995 appropriation but $90
million below the request. The Administration appreciates the
Committee's support for this important program but recommends
that the House provide the full amount of the request. In
addition, the Administration strongly opposes the Committee's
2
proposal to cap WIC participation. The Administration's goal is
to serve 7.5 million persons by the end of FY 1996 while the
Committee would cap participation at 7.3 million. Currently,
funding -- rather than participation -- is capped. This
encourages States to reduce costs in order to serve more
participants within available funding. Instituting a
participation cap would remove a State's incentive to control
costs once the State had reached its participation limit. The
Administration would strongly support a Floor amendment that
would remove the WIC participation cap.
In addition, the Committee bill would require that $20
million of FY 1996 administrative funds be made available for
food benefits. While the Administration believes that this is
preferable to the Subcommittee proposal to cap administrative
funding, the Administration is concerned that this would set a
precedent for reducing administrative funding within WIC.
Continued reductions could diminish program management and erode
the positive impacts of WIC for low-income women, infants, and
children.
Language Delaying Food Safety Regulations
The Administration opposes bill language that would mandate
negotiated rulemaking for the Department's proposed Hazard
Analysis and Critical Control Point (HACCP) program. Although
the Administration supports the use of negotiated rulemaking to
ensure effective regulation, the choice of when negotiated
rulemaking would be a more effective process should be determined
by the agency officials involved in the specific rulemaking
process. The proposed HACCP and Pathogen Reduction rule that the
Administration published in February 1995 is an important step
toward guaranteeing the safety of meat and poultry products.
Requiring that the agency undertake a negotiated rulemaking at
this time could significantly delay the modernization of the
Nation's meat and poultry inspection system.
Food and Drug Administration
The President's budget proposes language to permit the Food
and Drug Administration (FDA) to collect new user fees for
medical device review and import inspection. The language
references the government's general user fee authority, 31 U.S.C.
9701, as one potential authority for these collections. The
Committee bill would limit the ability of the FDA to ensure the
proper and most efficient uses of its resources through the
recovery of full value for its services to industry. The
Administration urges the House to permit the FDA to collect and
use these user fees.
3
Federal Lab Closures
The Administration has proposed closing 12 Federal
agricultural research facilities and re-targeting the funding to
current, higher-priority research projects. The Committee report
states that only five facilities should be closed, three
facilities should be relegated to alternate work sites, and the
four remaining facilities should be kept open. Committee
decisions such as these make it difficult for the Department to
manage its research programs to meet the highest priority food,
agricultural, and environmental needs. The Administration urges
the House to reverse the Committee action.
Additional Administration concerns with the bill as reported
by the Committee are contained in the attachment.
Attachment
4
Attachment
(House Floor)
ADDITIONAL CONCERNS
H.R. 1976 -- AGRICULTURE, RURAL DEVELOPMENT,
FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES
APPROPRIATIONS BILL, FY 1996
(AS REPORTED BY THE HOUSE FULL COMMITTEE)
The Administration looks forward to working with the Congress
later in the process in an effort to address the following
concerns:
Department of Agriculture
Rural Telephone Bank (RTB) Privatization. The
Administration encourages the House to reconsider the
Committee mark for RTB privatization. The mark would
severely impede privatization efforts by placing a
limitation of five percent on the amount of Federal
stock that can be retired in FY 1996. Current law sets
a minimum of five percent retirement per year beginning
in FY 1996, and the Committee would set the maximum at
five percent. The Administration will submit the
appropriate authorizing legislation in the near future.
This legislation will address the concerns raised by
the Committee in its report. The Administration urges
the House to allow the balances in the RTB "equity
fund" to be used to repurchase government-held stock in
the RTB, and allow the RTB privatization to be
accelerated, consistent with a smaller, streamlined
Government.
Export Assistance Programs. The Committee mark for the
Foreign Agricultural Service (FAS) is $5.7 million
below the request. In its request, the Administration
has included additional FAS funds in order to expand
the presence of U.S. agriculture overseas and increase
GATT-compatible, "greenbox" spending for agricultural
promotion. Providing adequate export funding is
essential in order to maintain the momentum of
increased agricultural exports that has been achieved.
P.L. 480. The Committee has funded P.L. 480 in excess
of the President's request. In particular, the funding
level for Title I is $115 million above the President's
request level. Title I has been shown to have limited
effectiveness in advancing its goal of market
development. The Administration urges the House to
reduce this program so that higher priority programs
can be funded.
The Administration regrets that the Committee has not
funded the request of $1.5 million for the cost of
reducing the P.L. 480 Title I debt of the poorest, most
heavily indebted countries. This is an important
element of multilateral action by the creditor
community to support policy reforms and improve growth
and export opportunities in these countries. The
President has agreed, at both the Naples and Halifax G-
7 Summits, to participate in this multilateral
endeavor. The Administration urges the House to
support this request.
Rural Development Performance Partnership. The
Administration commends the Committee for embracing the
concept of the Rural Development Performance
Partnership. However, the bill would combine only
water and wastewater loans and grants into the
partnership, whereas the Administration has proposed to
include 14 programs in the initiative. The
Administration urges the House to provide greater
flexibility in assistance to rural America by including
more programs under the partnership.
Food and Consumer Service. The Committee has provided
the Administration's request for the Nutrition
Assistance Program to Puerto Rico. While the Committee
bill would not provide for a transfer of funds to the
Animal and Plant Health Inspection Service for the
cattle tick eradication project, the Committee report
notes that Puerto Rico has the authority to continue to
fund the project within available funds. The purpose
of the block grant as described in the Food Stamp Act
is to "finance 100% of the expenditures for food
assistance provided to needy persons and 50% of the
administrative expenses related to the provision of the
assistance." The Administration does not share the
Committee's view that funding a cattle tick eradication
project is an appropriate use of funds intended to
assist low-income Puerto Ricans.
The Committee report directs that $65 million be used
for the food distribution program on Indian
reservations. The Administration's request is $14
million higher based on projections of the number of
Indians who will participate in the program. The
Administration can work with the participating tribes
"to convert this population to the food stamp program,"
but, under the law, the Administration cannot force
recipients to switch programs. The amount recommended
by the Committee may not be adequate to provide
assistance to those Indians who continue to choose to
participate in the commodities program. In addition,
2
encouraging USDA to move Indians from the commodities
program to Food Stamps would increase Federal costs
since the average benefit cost is higher in Food Stamps
than in the commodities program.
The Committee, in report language, would provide $5
million in support for the School Meals Initiative.
The Administration has requested $26 million to help
schools comply with Dietary Guidelines, as mandated by
the Healthy Meals for Healthy Americans Act. The
Administration urges the House to provide additional
funding for the School Meals Initiative.
The Committee bill does not provide the requested $4
million for an ADP infrastructure investment. The
Administration believes that funding in this area is
prudent as it will assist the agency to manage with
less -- through long-term increased efficiencies. The
Administration urges the House to provide the ADP
funding.
Info Share. The Administration has requested $59
million as a direct appropriation for Info Share. The
Committee has provided $7.5 million, based upon the
assumption that a contract for telecommunications would
not be let until late in FY 1996. However, at the
funding level approved by the Committee,
telecommunications investments in the new county
service centers would be curtailed. In addition, Info
Share expenditures involve more than a
telecommunications contract. Under the Committee mark,
direct funding for all other Info Share program areas
would be eliminated, such as business process re-
engineering and planning for management changes. The
Committee recognizes the importance of this initiative
to improving field office operations and customer
service. The Administration urges the House to include
funding for Info Share at the requested level.
Office of the Chief Financial Officer. The
Administration has requested an increase of $819
thousand to support policy improvement activities
required by the Chief Financial Officers Act. This
increase has not been provided by the Committee.
Consequently, preparation and review of audited
financial statements might be delayed beyond their
statutory deadlines, quality implementation of GAO and
Inspector General audit recommendations would be at
risk, and Departmental support for implementation of
major new policies, such as installing performance
measures in bureau systems, would remain nominal. The
Administration urges the House to fund this program
fully.
3
Financial System Management. The Committee has
included language in the bill regarding the management
of USDA financial systems that would intrude on
necessary Departmental prerogatives to decide systems
architecture and sources of software supply by
requiring Committee review of these operating
decisions. Furthermore, the Committee report asserts
that certain systems solutions are viable without
citing any analysis in support of those conclusions.
The Administration urges the House to delete this bill
language.
Food Safety and Other User Fee Proposals Denied. The
Committee has not provided appropriations language for
user fees proposed in the marketing and regulatory
programs area. In particular, the Committee has not
adopted the $107 million in requested overtime fees for
meat, poultry, and egg inspection. Committee action
would reduce program levels for the Food Safety and
Inspection Service by $50 million, further jeopardizing
needed improvements in the Nation's food safety system.
In addition, the Administration has proposed fees of $8
million in the Animal and Plant Health Inspection
Service, $4 million in the Agricultural Marketing
Service (AMS), and $17 million in the Grain Inspection,
Packers and Stockyards Administration. Although the
Committee bill would continue to allow the collection
of fees for AMS standardization activities, it would
not allow the collections to be credited to the
appropriations account, as requested in the FY 1996
Budget. The Administration urges the House to reverse
this action.
4
EXECUTIVE OFFICE OF THE PRESIDENT
IMPRESIDENT STATE
OFFICE OF management AND BUDGET
WASHINGTON, D.C. 20503
August 11, 1995
THE DIRECTOR
Honorable Mark O. Hatfield
Chairman
Committee on Appropriations
United States Senate
Washington, D.C. 20510
Dear Mr. Chairman:
The purpose of this letter is to provide the
Administration's views on H.R. 1976, the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Bill, FY 1996, as passed by the House. As the
Senate develops its version of the bill, your consideration of
the Administration's views would be appreciated.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays below
the FY 1995 enacted level. The Administration does not support
the level of funding assumed by the House or Senate Committee
602 (b) allocations. The Administration must evaluate each bill
both in terms of funding levels provided and the share of total
resources available for remaining priorities. The House bill is
$862 million below the President's request.
For the reasons discussed below, I would join the Secretary
of Agriculture in recommending that the President veto H.R. 1976
if it were presented to him as it passed the House.
Reductions in Rural Development Funds
The House has made deep, unacceptable reductions in rural
development programs. These high-priority programs are part of
the Administration's Rural Development Initiative, and they form
an integral part of the proposed Rural Development Performance
Partnership program. The House has reduced funds for rural water
and wastewater loans and grants to $435 million. This would.
represent a 45-percent reduction from the requested level and a
15-percent reduction from FY 1993 levels. Nearly 1,000 small,
rural communities would not receive Federal assistance to build
or improve their water and wastewater systems.
The House also would severely reduce funding for the
Intermediary Relending Program. The $7 million in direct loans
for this program in the House bill represents less than 10
percent of both the FY 1995 and the requested levels. This
program provides State-sponsored rural development intermediaries
with program funds that can be tailored to individual community
and regional needs.
In addition, single-family housing direct loans would be
reduced to $550 million, a 50-percent reduction from the request.
This would represent the lowest level for these housing loans in
30 years, and would deny over 10,000 rural low-income families
the opportunity to become homeowners. Many of these families
currently live in substandard houses. The Administration urges
the Senate to fund these important programs fully.
Food Stamps
The House-passed bill would undermine the essential nature
of the Food Stamp Program -- its ability to respond to increased
need during times of economic downturn. For the last five years,
the House has provided a benefit reserve, or "cushion," to guard
against an unexpected economic downturn or estimating errors.
The bill would remove this cushion, placing all food stamp
recipients in jeopardy of reduced benefits in the event of a
regional recession. The Administration urges the Senate to
maintain the food stamp benefit reserve, which is essential to
this national nutrition safety net.
The Administration urges the deletion of language in the
House-passed bill that would freeze the food stamp standard
deduction at the FY 1995 level. The Administration understands
that the House anticipated savings of $190 million in FY 1996 due
to this action. This proposal is similar to one included in the
welfare reform bill pending on the Senate floor (S. 904), and the
authorizing committee for that bill already has claimed similar
savings. Shifting these savings to the discretionary side of the
budget would put pressure on the authorizing committees to
replace the lost mandatory savings by making further cuts in
agricultural programs or assistance to needy individuals.
WIC
Under the House's proposals, the Special Supplemental
Nutrition Program for Women, Infants, and Children (WIC) would be
funded at $260 million above the FY 1995 appropriation but $90
million below the request. The Administration appreciates the
House's support for this important program but recommends that
the Senate provide the full amount of the request.
2
In addition, the House-passed bill would require that $20
million of FY 1996 administrative funds be made available for
food benefits. The Administration is concerned that this would
set a precedent for reducing administrative funding within WIC.
Administrative funds in the WIC program support critical program
oversight and cost containment efforts. Continued reductions in
administrative funds could diminish program management and limit
the WIC program's ability to conduct nutrition education and
medical referrals -- essential components for achieving the
program's positive health benefits.
Food Safety and Other User Fee Proposals
House action would reduce program levels for the Food Safety
and Inspection Service by $50 million, further jeopardizing
needed improvements in the Nation's food safety system. The
House has not provided appropriations language for user fees
proposed in the marketing and regulatory programs area. In
particular, the House has not adopted the $107 million in
requested overtime fees for meat, poultry, and egg inspection.
The Administration has also proposed fees of $8 million in
the Animal and Plant Health Inspection Service, $4 million in the
Agricultural Marketing Service (AMS), and $17 million in the
Grain Inspection, Packers and Stockyards Administration.
Although the House-passed bill would continue to allow the
collection of fees for AMS standardization activities, it would
not allow the collections to be credited to the appropriations
account, as requested in the FY 1996 Budget. The Administration
urges the Senate to reverse this action.
Food and Drug Administration
The President's budget proposes language to permit the Food
and Drug Administration (FDA) to collect new user fees for
medical device review and import inspection. The language
references the government's general user fee authority, 31 U.S.C.
9701, as one potential authority for these collections. The
House-passed bill would limit the ability of the FDA to ensure
the proper and most efficient use of its resources through the
recovery of full value for its services to industry. The
Administration urges the Senate to permit the FDA to collect and
use these user fees.
Federal Lab Closures
In our effort to reduce low-priority spending and move
toward balancing the budget, the Administration has proposed
closing 12 Federal agricultural research facilities and
re-targeting the funding to current, higher-priority research
3
projects. The House Appropriations Committee report accompanying
H.R. 1976 states that only five facilities should be closed,
three facilities should be relegated to alternate work sites, and
the four remaining facilities should be kept open. At the same
time, the House has significantly reduced rural housing programs.
The Administration urges the Senate to reverse the House action.
Additional Administration concerns with the bill as passed
by the House are contained in the enclosure. We look forward to
working with the Committee to address our mutual concerns.
Sincerely,
Alice M. Rivlin
Director
Enclosure
Identical Letters Sent to Honorable Mark O. Hatfield,
Honorable Robert C. Byrd, Honorable Thad Cochran,
and Honorable Dale Bumpers
4
Enclosure
(Senate Subcommittee)
ADDITIONAL CONCERNS
H.R. 1976 -- AGRICULTURE, RURAL DEVELOPMENT,
FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES
APPROPRIATIONS BILL, FY 1996
(AS PASSED BY THE HOUSE)
The Administration looks forward to working with the Congress to
address the following concerns:
Department of Agriculture
Rural Telephone Bank (RTB) Privatization. The
Administration encourages the Senate to reconsider the
House's mark for RTB privatization. The mark would
severely impede privatization efforts by placing a
limitation of five percent on the amount of Federal
stock that can be retired in FY 1996. Current law sets
a minimum of five percent retirement per year beginning
in FY 1996, and the House would set the maximum at five
percent. The Administration will submit the
appropriate authorizing legislation in the near future.
This legislation will address the concerns raised by
the House in the Committee report accompanying the
bill. The Administration urges the Senate to allow the
balances in the RTB "equity fund" to be used to
repurchase government-held stock in the RTB, and to
allow the RTB privatization to be accelerated,
consistent with a smaller, streamlined Government.
Export Assistance Programs. The House mark for the
Foreign Agricultural Service (FAS) is $5.7 million
below the request. In its request, the Administration
has included additional FAS funds in order to expand
the presence of U.S. agriculture overseas and increase
GATT-compatible, "greenbox" spending for agricultural
promotion. Providing adequate export funding is
essential in order to maintain the momentum of
increased agricultural exports that has been achieved.
The Administration urges the Senate to fund these
programs at the requested levels.
P.L. 480. The House has funded P.L. 480 in excess of
the President's request. In particular, the funding
level for Title I is $115 million above the President's
request level. Title I has been shown to have limited
effectiveness in advancing its goal of market
development. The Administration urges the Senate to
reduce this program so that higher priority programs
can be funded. For example, the House has not funded
the request of $1.5 million for the cost of reducing
the P.L. 480 Title I debt of the poorest, most heavily
indebted countries. This is an important element of
multilateral action by the creditor community to
support policy reforms and improve growth and export
opportunities in these countries. The President has
agreed, at both the Naples and Halifax G-7 Summits, to
participate in this multilateral endeavor. The
Administration urges the Senate to support this
request.
Rural Development Performance Partnership. The
Administration commends the House for embracing the
concept of the Rural Development Performance
Partnership. However, the House bill would combine
only water and wastewater loans and grants into the
partnership, whereas the Administration has proposed to
include 14 programs in the initiative. The
Administration urges the Senate to provide greater
flexibility in assistance to rural America by including
more programs under the partnership.
Food and Consumer Service. The House has provided the
Administration's request for the Nutrition Assistance
Program to Puerto Rico. While the House-passed bill
would not provide for a transfer of funds to the Animal
and Plant Health Inspection Service for the cattle tick
eradication project, the Committee report notes that
Puerto Rico has the authority to continue to fund the
project within available funds. The purpose of the
block grant as described in the Food Stamp Act is to
"finance 100% of the expenditures for food assistance
provided to needy persons and 50% of the administrative
expenses related to the provision of the assistance."
The Administration does not share the House's view that
funding a cattle tick eradication project is an
appropriate use of funds intended to assist low-income
Puerto Ricans.
2
The House Committee report directs that $65 million be
used for the food distribution program on Indian
reservations. The Administration's request is $14
million higher based on projections of the number of
Indians who will participate in the program. The
Administration can work with the participating tribes
"to convert this population to the food stamp program,"
but, under the law, the Administration cannot force
recipients to switch programs. The amount recommended
by the House may not be adequate to provide assistance
to those Indians who continue to choose to participate
in the commodities program. In addition, encouraging
USDA to move Indians from the commodities program to
Food Stamps would increase Federal costs since the
average benefit cost is higher in Food Stamps than in
the commodities program.
The House Committee, in report language, would provide
$5 million in support for the School Meals Initiative.
The Administration has requested $26 million to help
schools comply with Dietary Guidelines, as mandated by
the Healthy Meals for Healthy Americans Act. The
Administration urges the Senate to provide additional
funding for the School Meals Initiative.
The House-passed bill does not provide the requested $4
million for an ADP infrastructure investment. The
Administration believes that funding in this area is
prudent as it will assist the agency to manage with
less -- through long-term increased efficiencies. The
Administration urges the Senate to provide the ADP
funding.
Info Share. The Administration has requested $59
million as a direct appropriation for Info Share. The
House has provided $7.5 million, based upon the
assumption that a contract for telecommunications would
not be let until late in FY 1996. However, at the
funding level approved by the House, telecommunications
investments in the new county service centers would be
curtailed. In addition, Info Share expenditures
involve more than a telecommunications contract. Under
the House mark, direct funding for all other Info Share
program areas would be eliminated, such as business
process re-engineering and planning for management
changes. The House recognizes the importance of this
initiative to improving field office operations and
customer service. The Administration urges the Senate
to include funding for Info Share at the requested
level.
3
Office of the Chief Financial Officer. The
Administration has requested an increase of $819
thousand to support policy improvement activities
required by the Chief Financial Officers Act. This
increase has not been provided by the House. Without
the requested funds, preparation and review of audited
financial statements might be delayed beyond their
statutory deadlines, quality implementation of GAO and
Inspector General audit recommendations would be at
risk, and Departmental support for implementation of
major new policies, such as installing performance
measures in bureau systems, would remain nominal. The
Administration urges the Senate to fund this program
fully.
Financial System Management. The House has included
language in the bill regarding the management of USDA
financial systems that would intrude on necessary
Departmental prerogatives to decide systems
architecture and sources of software supply by
requiring Committee review of these operating
decisions. Furthermore, the House Committee report
asserts that certain systems solutions are viable
without citing any analysis in support of those
conclusions. The Administration urges the Senate to
delete this bill language.
Infringement on Executive Branch Authority. Section
722 of the House bill inappropriately intrudes into
Executive Branch decision-making by limiting the
authority of the Department of Health Human Services to
allocate full-time equivalent employment where they can
be best put to use within the Food and Drug
Administration. The Administration urges the Senate to
delete this provision.
4
F
EXECUTIVE OFFICE OF THE PRESIDENT
Given
OFFICE OF MANAGEMENT AND BUDGET
BUDG!
WASHINGTON, D.C. 20503
September 18, 1995
(Senate Floor)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 1976 -- AGRICULTURE, RURAL DEVELOPMENT,
FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES
APPROPRIATIONS BILL, FY 1996
(Sponsors: Hatfield (R), Oregon; Cochran (R), Mississippi)
This Statement of Administration Policy provides the
Administration's views on H.R. 1976, the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Bill, FY 1996, as reported by the Senate
Appropriations Committee.
The Administration is committed to balancing the Federal
budget by FY 2005. The President's budget proposes to reduce
discretionary spending for FY 1996 by $5 billion in outlays below
the FY 1995 enacted level. The Administration does not support
the level of funding assumed by the House or Senate Committee
602 (b) allocations. The Administration must evaluate each bill
both in terms of funding levels provided and the share of total
resources available for remaining priorities. The Committee bill
is $836 million below the President's request.
Favorable Senate consideration of the concerns discussed
below would help substantially in working toward the development
of an Agriculture/Rural Development appropriations bill that the
Administration could support.
Rural Development Funds
The Administration commends the Committee for embracing the
concept of the Administration's Rural Development Performance
Partnership and for expanding the number of programs included
under the Partnership beyond the number in the House bill.
However, the Committee bill would make unacceptable reductions in
these vital programs for rural America. Total funding for
programs included in the "Rural Community Advancement Program"
would be just over one-half of the funding level requested for
these programs. Even if all funds were directed to water and
wastewater loans and grants, the Committee's recommendation would
represent a 32-percent reduction from the President's request and
would deny assistance to hundreds of small, rural communities.
In addition, this allocation would leave no funds for rural
economic and community development programs, such as the
Community Facility and Intermediary Relending Programs.
Food Stamps
The Committee-reported bill, unlike the House-passed bill,
would preserve the essential nature of the Food Stamp Program --
its ability to respond to increased need during times of economic
downturn. For the last five years, the Congress has provided a
benefit reserve, or "cushion," to guard against an unexpected
economic downturn or estimating errors. The House-passed bill
would remove this cushion, placing all food stamp recipients in
jeopardy of reduced benefits in the event of a regional
recession. The Administration commends the Committee for
partially restoring the food stamp benefit reserve and urges the
Senate to provide the entire $2.5 billion, which is essential to
this national nutrition safety net.
The Administration urges the deletion of language in the
Committee-reported bill that would freeze the food stamp standard
deduction at the FY 1995 level. The Administration understands
that the Committee has anticipated savings of $190 million in FY
1996 due to this action. This proposal is similar to one
included in the welfare reform bill pending on the Senate floor
(S. 904), and the authorizing committee for that bill already has
claimed similar savings. Shifting these savings to the
discretionary side of the budget would put pressure on the
authorizing committees to replace the lost mandatory savings by
making further cuts in agricultural programs or assistance to
needy individuals.
WIC
Under the Committee's proposals, the Special Supplemental
Nutrition Program for Women, Infants, and Children (WIC) would be
funded at $260 million above the FY 1995 appropriation but $90
million below the request. The Administration appreciates the
Committee's support for this important program but recommends
that the Senate provide the full amount of the request.
The Committee-reported bill would require that $20 million
of FY 1996 administrative funds be made available for food
benefits. The Administration is concerned that this would set a
precedent for reducing administrative funding within WIC.
2
Administrative funds in the WIC program support critical program
oversight and cost containment efforts. Continued reductions in
administrative funds could diminish program management and limit
the WIC program's ability to conduct nutrition education and
medical referrals -- essential components for achieving the
program's positive health benefits.
In addition, the Committee-reported bill would allow FY 1995
recoveries of WIC program funds in excess of $100 million to be
transferred to the Rural Community Advancement Program. While
appreciative of the Committee's effort to provide additional
funds to rural development, the Administration has reservations
about redirecting WIC monies for other purposes.
Export Enhancement Program
The Administration strongly objects to Committee reductions
in key export assistance programs that could disadvantage exports
of U.S. commodities. In particular, the Committee bill would
reduce direct (mandatory) spending for the Export Enhancement
Program (EEP) to $800 million, $159 million below the President's
request and the GATT-permissible level. These export subsidies
are needed to combat the excessive subsidy levels provided by the
European Union for its agricultural exports.
Ad Hoc Disaster Payments for Cotton Farmers
The Administration strongly objects to the Committee
provision that would provide $41 million in ad hoc disaster
payments for cotton farmers. Last year, through a bipartisan
effort, a major reform of the crop insurance programs was
enacted. At the same time, all ad hoc disaster payment
authorities were repealed, with the understanding that farmers
would be required to carry crop insurance. Basic catastrophic
coverage is available for a $50 administrative fee, and farmers
can purchase additional, Federally-subsidized coverage through
private insurance companies. The Committee provision is in
direct conflict with one of the major tenets of last year's crop
insurance reform: that farmers would be discouraged from risk-
management through crop insurance as long as Federal crop
disaster payments were continually provided on an ad hoc basis.
The Administration urges the Senate to delete this provision.
3
Labeling Regulation
The Administration is strongly opposed to the Committee
bill's prohibition on the use of funds to implement or enforce
the final regulation on fresh and frozen poultry, which was
published on August 25, 1995. Publication of this regulation was
the culmination of nearly two years of effort, during which the
views of all stakeholders were heard and considered. The issue
of proper labeling of poultry products has been the subject of
litigation in Federal Court as well as congressional and USDA-
sponsored public hearings throughout the Nation. Committee
language would prevent consumers from receiving accurate
information and assurance of a national standard in this area and
could result in disparate and conflicting State enforcement
activity. The Committee's language represents unwarranted
legislative intrusion into the regulatory process.
University Research Buildings and Facilities
The Committee bill would provide $57.8 million for buildings
and facilities in the Cooperative State Research, Education, and
Extension Service. The Administration has proposed, and the
House-passed bill provides for elimination of this program. The
Committee report has repeated the historical practice of
earmarking all funds for the program to particular land-grant
universities. The Administration believes that scarce Federal
resources are better targeted to higher-priority purposes,
including those identified herein. The Administration urges the
Senate to delete funds for this program.
Wetlands Reserve Program (WRP)
The Committee mark would hold WRP sign-ups in FY 1996 to
only 100,000 acres, at an estimated program cost of $77 million.
This is well below the Administration's request for 300,000 acres
and $210 million in direct (mandatory) spending. The lower level
of funding for this program, which provides long-term and
permanent easements for restored wetlands, would make the goal of
achieving and surpassing the no-net-loss of wetlands more
difficult. Also, by restricting acreage rather than funds, the
incentive to seek lower-priced lands would be reduced.
Conservation Reserve Program (CRP)
The Committee bill would block any FY 1996 sign-ups for new
CRP acreage, which are funded through direct (mandatory)
spending. In a year when the Farm Bill will undoubtedly address
CRP reauthorization, it is inappropriate for appropriations
4
action to preclude sign-ups for the first year of the new farm
bill. In addition, not being able to retire vulnerable cropland
through the CRP would make clean water goals more difficult to
achieve, provide less habitat for wildlife and migratory birds,
and decrease farm commodity prices while increasing Commodity
Credit Corporation outlays. In light of the acreage that is soon
to expire from the CRP, additional sign-ups must be permitted to
retain the program's benefits.
Food and Drug Administration
The President's budget proposes language to permit the Food
and Drug Administration (FDA) to collect new user fees for
medical device review and import inspection. The language
references the government's general user fee authority, 31 U.S.C.
9701, as one potential authority for these collections. The
Committee-reported bill would limit the ability of the FDA to
ensure the proper and most efficient use of its resources through
the recovery of full value for its services to industry. The
Administration urges the Senate to permit the FDA to collect and
use these user fees.
Additional Administration concerns with the bill as reported
by the Committee are contained in the attachment.
Attachment
5
Attachment
(Senate Floor)
ADDITIONAL CONCERNS
H.R. 1976 -- AGRICULTURE, RURAL DEVELOPMENT,
FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES
APPROPRIATIONS BILL, FY 1996
(AS REPORTED BY THE SENATE APPROPRIATIONS COMMITTEE)
The Administration looks forward to working with the Congress to
address the following concerns:
Department of Agriculture
Rural Telephone Bank (RTB) Privatization. The
Administration encourages the Senate to reconsider the
Committee mark for RTB privatization. The mark would
severely impede privatization efforts by placing a
limitation of five percent on the amount of Federal
stock that can be retired in FY 1996. Current law sets
a minimum of five percent retirement per year beginning
in FY 1996, and the Committee would set the maximum at
five percent. The Administration will submit the
appropriate authorizing legislation in the near future
to accelerate privatization. This legislation will
address the concerns raised by the Committee in its
report. The Administration urges the Senate to allow
the balances in the RTB "equity fund" to be used to
repurchase government-held stock in the RTB, and to
allow the RTB privatization to be accelerated,
consistent with a smaller, streamlined Government.
O
Export Assistance Programs. The Committee mark for the
Foreign Agricultural Service (FAS) is $5.7 million
below the request. The Administration included
additional FAS funds in order to expand the presence of
U.S. agriculture overseas, and to increase GATT-
compatible, "greenbox" spending for agricultural
promotion. Providing adequate export funding is
essential in order to maintain the momentum of
increased agricultural exports that has been achieved.
P.L. 480. The Committee has not funded the request of
$1.5 million for the cost of reducing the P.L. 480
Title I debt of the poorest, most heavily indebted
countries. This is an important element of
multilateral action by the creditor community to
support policy reforms and improve growth and export
opportunities in these countries. The President has
agreed, at both the Naples and Halifax G-7 Summits, to
participate in this multilateral endeavor. The
Administration urges the Senate to support this
request. Offsets for debt restructuring for the
poorest countries could be found in the funding level
for Title I, which is $115 million above the
President's request level. The Administration urges the
Senate to reduce this program so that higher priority
programs can be funded.
Food and Consumer Service. The Senate Committee, in
report language, would provide the Administration's
request of $20 million in support of the School Meals
Initiative. The Administration commends the Committee
for providing this funding, which is a critical part of
our national effort to improve school meals.
The Committee-reported bill would provide $1 million
for an ADP infrastructure investment. The
Administration believes that funding in this area is
prudent as it will assist the agency to manage with
less -- through long-term increased efficiencies. The
Administration urges the Senate to provide the full ADP
investment of $4 million.
The Center for Nutrition Policy and Promotion. The
Committee has not provided funding for The Center for
Nutrition Policy and Promotion. As the lead Federal
agency in human nutrition, the Department of
Agriculture is charged with designing and disseminating
nutrition education and information to all American
consumers. The Center is the focal point in the
Department for linking scientific research to the
consumer. The Administration urges the Senate to fund
the $4.7 million request for the Center and its
Nutrition Promotion Initiative.
Info Share. The Administration has requested $59
million as a direct appropriation for Info Share;
however, the Committee bill provides $10 million. At
the funding level approved by the Committee,
telecommunications and other needed investments in the
new county service centers would be curtailed. Under
the Committee mark, all other Info Share program areas
7
would be eliminated, such as business process re-
engineering and planning for management changes. The
Administration urges the Senate to include Info Share
funding at the requested level.
O
User Fee Proposals. The Committee mark would not
provide appropriations language for user fees proposed
in the marketing and regulatory programs area. The
Administration has proposed fees of $105 million for
meat, poultry, and egg inspection; $8 million in the
Animal and Plant Health Inspection Service; $4 million
in the Agricultural Marketing Service; and $17 million
in the Grain Inspection, Packers and Stockyards
Administration. Although the Committee would continue
to allow the collection of fees for Agricultural
Marketing Service standardization activities, it would
not allow the collections to be credited to the
appropriations account, as requested in the 1996
Budget. The Administration urges the Senate to reverse
this action.
Office of the Chief Financial Officer. The
Administration has requested an increase of $819
thousand to support policy improvement activities
required by the Chief Financial Officer's Act. This
increase has not been provided by the Committee.
Without the requested funds, preparation and review of
audited financial statements might be delayed beyond
their statutory deadlines, quality implementation of
GAO and Inspector General audit recommendations would
be at risk, and Departmental support for implementation
of major new policies, such as installing performance
measures in bureau systems, would remain nominal.
Infringement on Executive Branch Authority. Section
722 of the Committee bill inappropriately intrudes into
Executive Branch decision-making by limiting the
authority of the Department of Health Human Services to
allocate full-time equivalent employment where they can
be best put to use within the Food and Drug
Administration. The Administration urges the Senate to
delete this provision.
8