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    "ocrText": "-\nToby comments on speah\n-\n4thgraph= \"officially\"\nCame toan end\nStates States graph : :\n11 \"Forexample\" \" Wiscoft\nMichael 62272\nToby-maints Toby - unaintt\n690 7850\n62272\nPHOTOCOPY\nPRESERVATION\nDepression + then was\n- in & percentage terms\nlate 30s to only yos\nwelfore caselord deppert\nby 40%\n- in absolute terms NO who\nnew 3millon - 80 if\nyou use about terms\nCan 80m \"In histry\nPHOTOCOPY\nPRESERVATION\nMaureen H. Walsh\n01/22/98 08:41:43 AM\nRecord Type:\nRecord\nTo:\nCynthia A. Rice/OPD/EOP\nCC:\nSubject: Welfare-to-Work Technical Amendment\nfyi--you probably already know this.\nForwarded by Maureen H. Walsh/OMB/EOP on 01/22/98 08:41 AM\nMaureen H. Walsh\n01/21/98 05:59:15 PM\nRecord Type:\nRecord\nTo:\nBarry White/OMB/EOP@EOP, Larry R. Matlack/OMB/EOP@EOP, Daniel I. Werfel/OMB/EOP@EOP\nCC:\nMaureen H. Walsh/OMB/EOP@EOP\nSubject: Welfare-to-Work Technical Amendment\ncan be found at Sec. 608 of the FY 1998 L/HHS/ED Appropriations Act (P.L. 105-78). The\namendment changes from one to three years the period of expenditure of State matching funds.\nRoth objectal\nKnowed $6.2mi-6 to $ 4 mill win\n->Was gointo be U< 6n\nmaragu's andmA.\nweigh Mr\nWhat lan H. Ken T Blue do ? ≥\nBarbana Chow\n- Neod to get a meeting\nal Dennis Smith\nAtexis to call Roth\n7:00\nJust briefer Dennis Smith\nNot coming on florents tomorow\n- Approps makep - end of July\nprovideral syntal poblen - not\nNext step-\ntack f Specta's staff pason\nDon't have anything on House side\nfromx\nTHE WHITE HOUSE\nWASHINGTON\nJuly 17, 1997\nSpeaker of the\nHouse of Representatives\nSir:\nI ask Congress to consider the enclosed amendments to the FY 1998 appropriations\nrequests for the Department of Labor, the Department of State, and the Arms Control and\nDisarmament Agency. The Department of Labor proposal would provide $6.2 million to\nadminister the \"Welfare-to-Work Jobs\" program. An additional $13 million is requested for the\nArms Control and Disarmament Agency for implementation of the Comprehensive Nuclear Test\nBan Treaty. Finally, a technical budget amendment is submitted to adjust the user fee treatment\nproposed in the FY 1998 budget for the Department of State.\nThese requests would not increase the budget totals. The $13 million increase for the\nArms Control and Disarmament Agency is offset by a reduction to a Department of State\naccount. Budgetary resources for the Department of Labor request and the user fee proposals for\nthe Department of State are already assumed in the pending request.\nThe details of these actions are set forth in the enclosed letter from the Director of the\nOffice of Management and Budget. I concur with his comments and observations.\nSincerely,\nWilliam 1. Cinton\nEnclosure\nOMB LABOR BRANCH\n10:55 No .002 P.19\n26.01 SEP\nFY 1998 Budget Amendment\nAgency:\nDEPARTMENT OF LABOR\nBureau:\nEMPLOYMENT AND TRAINING ADMINISTRATION\nHeading:\nWelfare-to-Work Jobs\nFY 1998 Budget\nAppendix Page:\n708\nFY 1998\nPending Request:\nProposed Amendment:\n$6,200,000\nRevised Request:\n$6,200,000\n(Under the above heading, insert the following appropriations language:)\nFor expenses of administering a Welfare-to-Work Jobs initiative, subject to enactment of\nlegislation authorizing such program, $6,200,000.\nThe Welfare-to-Work Jobs initiative would provide grants to States and localities to help\nmove one million of the hardest-to-employ welfare recipients into jobs by the year 2000.\nGrantees could spend grant funds to help move eligible individuals into the workforce by means\nof job creation, on-the-job training, job placement, job vouchers, or job retention services.\nThis request would provide $6.2 million and 75 full-time equivalents (FTEs) to\nadminister the Welfare-to-Work Jobs program. Of the 75 FTEs total, it is estimated that 45 FTEs\nwould be required for grants/contracts management and oversight; 15 FTEs would provide\ntechnical assistance and training to States and local areas administering the program; eight FTEs\nwould manage program design and implementation; five FTEs would provide financial,\nbudgeting, accounting, and performance management activities; and, two FTEs would perform\nactivities related to policy, research, and evaluation. Of the 75 FTEs requested, 30 FTEs would\nbe assigned to the national office, and 45 FTEs would be in the field. The majority of staff to be\nhired would be temporary staff.\nThis proposal was included in the FY 1998 Budget as an item to be transmitted to the\nCongress at a later date. The proposed budget totals would not be affected.\nOMB LABOR BRANCH\n10:56 No .002 P.22\n26.01 SEP\nF\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nSeptember 4, 1997\n(House Floor)\nSTATEMENT OF ADMINISTRATION POLICY\n(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)\nH.R. 2264 - DEPARTMENT OF LABOR, HEALTH AND HUMAN SERVICES,\nEDUCATION, AND RELATED AGENCIES APPROPRIATIONS BILL. FY 1998\n(Sponsors: Livingston (R), Louisiana; Porter (R), Illinois)\nThis Statement of Administration Policy provides the Administration's views on H.R.\n2264, the Department of Labor, Health and Human Services, Education, and Related Agencies\nAppropriations Bill, FY 1998, as reported by the House Appropriations Committee. Your\nconsideration of the Administration's views would be appreciated.\nThe Committee has developed a bill that provides requested funding for many of the\nAdministration's priorities. We are pleased that the Committee has fully funded Bilingual and\nImmigrant Education, School to Work, Head Start, Technology Literacy Challenge, 21st Century\nCommunity Learning Centers, the targeted portion of the Title I formula, and education statistics\nand assessment The Administration is also pleased that the Committee has limited the number\nof appropriations riders, consistent with the terms of the Bipartisan Budget Agreement. The\nHouse is urged to continue this practice.\nAs discussed below, the Administration will seek restoration of certain of the\nCommittee's reductions. The Administration is committed to working with the House to identify\nreductions in the bill in order to find offsets for the restoration of funds that the Administration\nseeks. For example, the Committee bill provides nearly $1 billion more than the President has\nrequested for more than two dozen authorities in the Department of Education, while cutting the\nPresident's request by over $1 billion We strongly urge the House to reduce funding for lower\npriority programs, of for programs that would be adequately funded at the requested level, and\nto redirect funding to programs of higher priority, particularly, as noted below, those contained\nin the Bipartisan Budget Agreement.\nUnfortunately, the Administration understands that a number of controversial\namendments may be offered, such as an amendment to halt the President's national testing\ninitiative, an amendment to prohibit the use of funds in the Act for supervising the Teamster's\nelection, and another amendment to prohibit the Education Department from enforcing federal\nlaws against discrimination in public education admissions through affirmative action or\npreferences in any State where affirmative action or preferences are prohibited by State law. In\naddition, certain provisions of the Committee bill, such as the lack of funding for the President's\nAmerica Reads Challenge, are contrary to the Bipartisan Budget Agreement. If such policies\nwere adopted, particularly in light of other concerns raised in this Statement of Administration\nPolicy, the President's senior advisers would be forced to recommend that the President veto the\nbill.\nP.02 .002 ON 10:44\n26.01 SEP\nOMB LABOR BRANCH\nDepartment of Education\nThe Administration appreciates the Committee's efforts to provide substantial new\nfunding for education activities. Unfortunately, the Committee has failed to provide the $260\nmillion necessary for the President's America Reads Challenge in the Department of Education,\nand the bill provides only $10 million of the $42 million requested for America Reads in the\nportion of the Corporation for National and Community Service budget funded by this bill. The\nCommittee has provided advance funding for America Reads to the Department of Education for\nFY 1999, pending new authorization, which would produce a full year's delay in getting needed\nreading assistance to millions of children The Bipartisan Budget Agreement specifically calls\nfor funding a literacy program, \"consistent with the goals and concepts of the President's\nAmerica Reads program\" at the levels proposed in the President's FY 1998 Budget. America\nReads is one of the Administration's highest funding priorities. The Administration believes that\nfull FY 1998 funding for this initiative should be restored to both the Department of Education\nand the Corporation for National and Community Service activities funded in this bill and in the\nVA/HUD Appropriations bill.\nThe Administration is working closely with the authorizing committees to develop\nlegislation effective for FY 1998. There is ample time to enact legislation, as needed, by\nApril 1 for a program that would begin on July 1, in time for summer activities and the\n1998-1999 school year. The Administration also strongly urges the Congress to include in this\nAct a provision to make the funds available on April 1 under existing authorities, in the event\nthat final action on the authorization bill is not completed in a timely manner.\nThe Administration is strongly opposed to amendments that would bring a halt to the\nPresident's national testing initiative. The national tests proposed by the President are critical\nbecause they will, for the first time, provide students, parents, and teachers the opportunity to\nmeasure how well students are performing in comparison to other students nationally and\ninternationally and, as a result, they will help hold schools accountable to parents and\ncommunities for the performance of all students. The Department of Education has the authority\nto develop these tests under the Fund for the Improvement of Education (FIE). We support the\nbill's requirement that the Department of Education contract with the National Academy of\nScience to conduct a study and report on the testing initiative. In addition, we support legislation\nto place overall responsibility for the testing initiative with the independent, bipartisan National\nAssessment Government Board\nThe Administration urges the House to provide adequate funding for the FIE program\nthat finances this testing initiative, so that sufficient funding will also be available for\ncontinuations, new awards, and congressional directives.\nThe Bipartisan Budget Agreement specifies funding at the levels proposed in the\nPresident's budget for Pell grants, which supports both a $3,000 maximum award and expanded\neligibility for independent students. The Committee bill cuts the Pell request by over $197\n2\n30'd .002 ON 10:14\n26.01 569\nOMB LABOR BRANCH\nmillion, and does not authorize the Administration's proposed independent student policy.\nThis authorization is no different from the Committee's annual procedure of authorizing the\nmaximum Pell grant award We urge the House to fully fund Pell grants and to authorize both\nthe maximum award and the independent student change.\nThe Committee bill funds Education Reform at $1.13 billion, $110 million below the\nlevel agreed to in the Bipartisan Budget Agreement. Within the total, Goals 2000 is funded at\nonly $475 million, $145 million below the request. Goals 2000 funds provide essential support\nto every State's education improvement strategy. We strongly urge the House to restore full\nfunding for Goals 2000.\nThe Administration strongly opposes a proposed amendment that would prohibit the\ninvestigation of violations by and imposition of penalties upon States that do not comply with the\nstatutory requirement of the Individuals with Disabilities Education Act (IDEA) Amendments of\n1997 to serve eligible individuals with disabilities age 18 or older in adult State prisons. The\nAmendments reduced States' burden by reducing the number of eligible individuals and by\nlimiting the types of services that must be provided. Since prison education programs have a\npositive affect on reducing recidivism and on post release employment success, the requirement\nto serve this population should be properly enforced.\nThe Administration urges the House to fund Safe and Drug-Free Schools and\nCommunities (SDFSC) at the President's FY98 request of $620 million, $64 million above the\nHouse mark. SDFSC, the largest Federal school-based drug and violence prevention program,\nserves more than 40 million students in over 97 percent of the nation's school districts and is an\nessential component of a comprehensive effort to reduce teen drug use.\nThe Administration is concerned about a proposed amendment that would cut funding for\nthe Statistics program by $14 million, which would mean that the Department of Education\nwould not be able to move forward on a number of studies, including those providing key data\non early childhood, student achievement, teachers, and adult literacy. The Administration urges\nthe House to oppose this proposed amendment, and to provide the requested level.\nThe Committee has included language amending the definition of an eligible lender in the\nFederal Family Education Loan Program. The language would provide a broad exception to the\ncurrent limitation on how much of a bank's portfolio can be guaranteed student loans, including\nloans that a bank holds as a trustee for a third party. It would also allow finance companies, the\nfinancial solvency of which is not regulated by a public entity as are banks, to be eligible lenders.\nBoth of these provisions would increase the Federal exposure to financial risk and weaken parts\nof the statute that have been passed specifically in response to prior abuses. The provision\nshould be stricken from the bill.\nWe urge the House to fund at the President's Budget level other high priority Education\nprograms, including Adult Education, Eisenhower Professional Development, and Charter\nSchools.\n3\n26.01 SEP\nID:202-395-1596\nOMB LABOR BRANCH\nto d .002 ON 10:45\nDepartment of Health and Human Services\nThe Administration is deeply concerned that the Committee has failed to provide $21\nmillion for the Administration's new Adoption Initiative. The goal of this program is to double\nthe number of children adopted or permanently placed outside of child welfare systems by FY\n2002. The Administration strongly urges the House to fully fund this urgently-needed program\nat the President's requested level.\nAn amendment has been made in order that would include a prohibition on the purchase\nof managed care coverage that includes abortion. The President believes that abortion should be\nsafe, legal, and rare. However, the amendment would not only maintain, but would further limit\nthe range of conditions under which 2 woman's health would permit access to abortion\nFurthermore, it would require a physician to make a legal determination that these conditions\nhave been met The Administration opposes this attempt to constrain further the availability of\nabortion services and strongly urges the House not to adopt the amendment Nonetheless, it is\nhelpful that the amendment is clear that limitations on the use of Federal funds to provide\nabortion services under managed care plans do not affect in any way the ability of States to\nprovide such coverage using their own funds, nor the ability of managed care providers to\nparticipate in Federally-funded programs while also offering other coverage paid for by State or\nprivate funds.\nThe Administration supports efforts to encourage minors to discuss their health care\nneeds with their families. However, the Administration is concerned about a potential\namendment on the House Floor requiring parental consent for minors to receive contraceptive\nhealth services in Title X Family Planning clinics. Mandating parental consent for contraceptive\nservices could discourage sexually active minors from seeking health care and reproductive\ncounseling services and, thus, lead to even more unwarranted pregnancies, more abortions, and\nmore sexually transmitted diseases, including HIV, among our Nation's youth As an alternative,\nthe Administration prefers the amendment made in order in the rule that requires clinics to certify\nthat they encourage family participation in the decision of minors to seek family planning\nservices and that they provide counseling to minors on resisting attempts to coerce minors into\nengaging in sexual activities. The Administration does not support two likely amendments that\nwould decrease funding for the Title X Family Planning program below the request of $203\nmillion.\nAn amendment may be offered that would prohibit the use of funds in the Act for needle\nexchange programs. The Administration opposes such an amendment. Under current law, the\nSecretary may authorize such programs only after scientific study and a formal determination\nthat they would both prevent the spread of disease and not contribute to drug abuse. The\nDepartment is currently engaged in this research. It is premature to foreclose the possible public\nhealth benefits before the scientific evidence has even been considered.\n4\nOMB LABOR BRANCH\n10:46 No.002 P.05\n26.01 d3S\nThe House Committee has not provided funding for the Medicare Transaction System\n(MTS), noting criticisms of the MTS design. The President's $89 million request would fund\nconsolidation of HCFA's current contractor systems, which needs to occur prior to, and\nindependent of, final resolution of MTS design issues. The Committee also notes that funding\nfor the Medicare Integrity Program, established by the Kassebaum-Kennedy legislation, could be\nused to fund MTS. We believe that using Medicare Integrity Program funding for this purpose\nwould be inappropriate since that program was established specifically to combat fraud and\nabuse. To the extent possible, the Administration urges the House to restore funding for MTS to\nthe requested level.\nThe Administration is pleased that the Committee has provided the requested increase of\n$40 million over FY 1997 for Ryan White AIDS Treatment Grants, and an additional $132\nmillion to help States purchase drugs. However, the Committee has not allocated the $40\nmillion increase among the Titles of the Ryan White CARE Act toward primary care as proposed\nin the FY 1998 Budget. The Administration's proposed allocation targets additional resources to\nthose Titles that emphasize the delivery of primary care, a particularly important priority now\nthat the prospects for medical care for people infected with HIV have improved dramatically.\nThe Administration looks forward to working with Congress to ensure that the resources\nprovided to the Ryan White AIDS Treatment Grants are distributed in a way that is consistent\nwith the priorities placed on primary care in the President's budget.\nThe Administration is concerned that the Committee bill does not appropriate a specific\namount for AIDS research through a single appropriation for the National Institutes of Health's\n(NIH's) Office of AIDS Research, as requested in the President's budget. The single\nappropriation would help NIH plan and target NIH research funds effectively, minimizing\nduplication and inefficiencies across the 21 institutes and centers that carry out HIV/AIDS\nresearch\nThe Administration is concerned that the Committee has not provided the full increase\nrequested for HIV prevention programs of the Center for Disease Control and Prevention. The\nBudget proposes a $17 million increase for this activity to target HIV prevention for intravenous\ndrug users at risk of developing the virus. The Administration urges the House to provide the\nfull requested amount to the extent possible.\nThe President's Budget includes $39 million for welfare research. The Committee has\nprovided only $21 million. In order to gauge the effects of welfare reform, review and\nmonitoring research is needed now more than ever. The Administration urges the House to fund\nwelfare research at the President's requested level.\nDepartment of Labor\nThe Bipartisan Budget Agreement specifies funding at the levels proposed in the\nPresident's budget for Training and Employment Services (TES), including Job Corps. The\nCommittee mark is $233 million below this level. The Committee has provided $100 million in\n5\n10:46 No.002 P.06\n26.01\nSEP\n96SI-6-0:I\nOMB LABOR BRANCH\nFY 1999 for the Youth Opportunity Area proposal, subject to enactment of authorizing\nlegislation. This program is an essential component of the Administration's Enterprise\nZones/Empowerment Communities initiative. It may be carried out under existing legislation,\nand a separate authorization is not necessary. The House is urged to provide resources for this\ninitiative in FY 1998, without the restriction imposed by the Committee.\nWe understand that an amendment may be offered that would further reduce funding for\nthe Job Training Partnership Act's low-income adult training grant program by $21 million, and\nthus deny training and employment services to some 7,000 low-income adults and welfare\nrecipients pursuing economic self-sufficiency. We strongly urge the House to reject the\namendment.\nThe Committee has failed to provide $89 million for spending on UI \"integrity\"\ninitiatives\n(e.g., increased eligibility reviews, tax audits). This spending is explicitly assumed in the\nBalanced Budget Act of 1997, and would, over five years, achieve $763 million in mandatory\nsavings assumed in the Act. The House is urged to provide this increase.\nOn July 17, 1997, the President sent to Congress a budget amendment for $6.2 million\nfor the Labor Department to administer the $3 billion Welfare-to-Work program. This program\nis agreed to by Congress in the Balanced Budget Act of 1997, effective October 1, 1997. We\nX\nurge the House to add these funds.\nThe Committee has provided $981 million, an increase of $32 million over the FY 1997\nenacted level, for the Department of Labor workplace protection programs, about half of the\nPresident's proposed increase. Without the requested increase, the Department will not be able\nto carry out a balanced program of targeted enforcement with expanded partnerships and\ncompliance assistance in the regulated community, or streamline its operations to provide\nassistance to small businesses in complying with various workplace laws and related executive\norders, such as the systems and technical assistance improvements requested for the Office of\nFederal Contract Compliance. In addition, funding for the independent National Labor Relations\nBoard has been frozen, a cut of $11 million below the request. The Administration urges the\nHouse to enact the Administration's's request for these programs.\nSocial Security Administration\nThe Committee has provided $245 million for additional Continuing Disability Review\n(CDR) funding and SSI reforms implementation, $45 million less than the President's request.\nThis amount is not subject to the discretionary spending caps. Failure to provide the additional\nfunds would mean that some 15 percent fewer individuals would have their status reviewed in\nFY 1998, potentially costing hundreds of millions of dollars in benefits to individuals who would\nhave been found no longer eligible. We urge the House to provide the additional $45 million.\nAdditional Administration concerns with the Committee bill are contained in the\nattachment.\nAttachment\n6\nOMB LABOR BRANCH\n10:47 No P.07\n26.01 SEP\nAttachment\n(House Floor)\nADDITIONAL CONCERNS\nH.R. 2264 - DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES,\nEDUCATION, AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1998\n(AS REPORTED BY THE HOUSE COMMITTEE)\nThe Administration looks forward to working with the Congress to address the following\nconcerns.\nAll Agencies Covered by the Bill\nOperating Plans. The Committee report calls for all agencies covered by the bill\nto provide to the Committee \"operating plans\" for appropriations. We are\nprepared to work with the Committee to discuss the purpose of this request and\ndetermine how to address it.\nDepartment of Health and Human Services\nCommunity Schools: Violent Crime Reduction While the Administration\nsupports the Committee's funding of Violence Against Women Act programs, the\nCommittee has provided no funding for the Community Schools program within\nthe Violent Crime Reduction Programs account or for the Community-\nBased Resource Centers and Developmental Disabilities Special Projects\nactivities. We urge the House to restore funding for these programs.\nMedicare Survey and Certification User Fees. The President's budget proposes\ntotal funding of $158 million for the surveys and certification program, $148\nmillion in budget authority and $10 million in user fees. The Committee has\nprovided $148 million in budget authority, $10 million below the President's\nrequest. On March 27, 1997, the Administration transmitted legislation to\nCongress for the authorization of $10 million in new survey and certification user\nfees. The Administration believes that health care providers who derive\nconsiderable benefit from the Medicare program should fund the cost\nof conducting initial surveys required for entry into the program. We urge\nCongress to enact the Administration's survey and certification user fee proposal\nand to fully fund the President's request for this activity.\nHCFA Federal Administration. The Committee has not funded HCFA Federal\nAdministration at the President's FY 1998 request of $358 million. The\nCommittee's funding level of $348 million could hinder HCFA's efforts to comply\nwith year 2000 systems requirements and perform the CFO audit. In addition, we\n80°d NO.002 10:48\n26.01 SEP\n96S1-6-:I\nOMB LABOR BRANCH\nunderstand that an amendment may be offered that would further reduce funding\nfor HCFA Federal Administration by transferring $2.3 million to HRSA. The\nAdministration urges Congress to fully fund the President's request.\nHansen's Disease. The bill includes language that would transfer HHS's Hansen\nDisease treatment facility at Carville, Louisiana, to the State of Louisiana. The\nAdministration supports this transfer, but objects to how the language transfers\nproperty to the State of Louisiana and how it handles personnel issues. We\nbelieve that the General Services Administration, the Federal Government's\nproperty asset manager, should handle the transfer as authorized in the Federal\nProperty and Administrative Services Act of 1949. In addition, the\nAdministration strongly opposes those provisions pertaining to the computation of\nemployee annuities and disability retirement benefits. The Administration urges\nthe House to delete these provisions. There are a variety of ways to ensure the\nwell-being of and retirement benefits for these employees, and the Administration\nwants to work with the House to draft language that is consistent with current law.\nAdditional Health Concerns. The Administration is concerned that the Committee\nhas not provided the full request for the Office of Emergency Preparedness,\nHRSA Organ Transplantation, the Office for Civil Rights, CDC's National Center\nfor Health Statistics, and SAMHSA Data Collection activities. To the extent\npossible, we urge that the requested funding level be provided.\nSocial Security Administration\nOfficial Time. Language of the Committee bill would bar the expenditure of trust\nfund money for employees who conduct union activities on official time. Paying\nfor such expenses is consistent with both Federal law and SSA's collective\nbargaining agreements. Restricting certain funding sources from paying for this\nactivity would unfairly shift costs to the general fund and not reduce the amount\nof Federal funds expended on this legitimate activity. This limitation should be\nstricken from the bill.\nUser Fees. The Committee has included language to authorize increases to the fee\nStates pay SSA for administering State payments that are supplemental to SSI\nbenefits, and provide for such funds to be available, subject to appropriations\naction, upon collection for SSA administrative expenses. This provision is\nidentical to language in the Balanced Budget Act of 1997, which also includes a\nprovision directing that these additional fees shall be credited as a discretionary\noffset to discretionary spending to the extent that the amounts are made available\nfor expenditure in appropriations acts. The Administration commends the\nCommittee's actions and suggests that the House delete the language that is\nduplicative.\n2\n10:49 No .002 P.09\n26.01 SEP\nID:202-395-1596\nOMB LABOR BRANCH\nRailroad Retirement Board\nInspector General. The Committee has included language prohibiting the use of\nany funds other than those in the Inspector General (IG) account for the provision\nof supplies, space, and services by other offices of the Railroad Retirement Board\n(RRB) to the IG. The language should be stricken from the bill. The\nAdministration believes that the current means of financing centralized services\nprovided to the IG is consistent with the provisions of the IG Act and that the\nRRB should not be singled out in this respect. The Administration also notes that,\nonce the amount specified in report language related to these support services is\nfactored into the total for the IG, the Committee would effectively reduce the IG\nbudget by 17 percent from the FY 1997 enacted level. The President's request is\nfor level funding: the Committee's reduction is excessive.\nInspector General. The Committee bill includes language prohibiting the Railroad\nRetirement Board (RRB) Inspector General from using funds for any audit,\ninvestigation, or review of the Medicare program. RRB has statutory authority to\nadminister a separate contract for RRB, Part B Medicare claims. The\nAdministration believes that this language should be dropped. As long as RRB\nhas authority to negotiate and administer a separate Medicare contract, the RRB\nInspector General ought not to be prohibited from using funds to review, audit, or\ninvestigate activity related to that contract.\nAnned Forces Retirement Home\nThe Committee bill would reduce the $25 million capital program by one third.\nThis program includes the renovation of the Sheridan dormitory in Washington\nand design of the medical facility in Mississippi. The Administration strongly\nsupports full funding of these renovations which are badly needed to serve these\nelderly veterans.\n3\nP.10 0202 ON 10:49\n26.01 SEP\nID:202-395-1596\nOMB LABOR BRANCH\n105th Congress, 1st Session\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE\nOFFICE OF MANAGEMENT AND BUDGET\nUNITED\nWASHINGTON. D.C. 20503\nSTATE\nTHE DIRECTOR\nJuly 17, 1997\nThe President\nThe White House\nSubmitted for your consideration are amendments to your FY 1998 appropriations\nrequests for the Department of Labor, the Department of State, and the Arms Control and\nDisarmament Agency.\nThe Department of Labor proposal would provide $6.2 million in discretionary funding\nneeded to administer the \"Welfare-to-Work Jobs\" program. The Bipartisan Budget Agreement\nassumes $3 billion in mandatory spending for this program through FY 2001. The $6.2 million\nrequested herein is for the administrative costs of the program and was included in the FY 1998\nBudget as a legislative proposal for later transmittal. This amendment transmits the\nappropriations request for this program, which is contingent upon enactment of authorizing\nlegislation.\nAn additional $13 million is requested for the Arms Control and Disarmament Agency to\nprovide funding necessary to implement the Comprehensive Nuclear Test Ban Treaty. The\nfunding would be used to pay administrative costs and to help develop and install an\ninternational monitoring system to detect nuclear explosions.\nA technical amendment for the Department of State's Diplomatic and Consular Programs\nwould replace the original legislative proposal affecting the use of passport and other consular\nfees contained in the FY 1998 Budget.\nThese proposals would not increase FY 1998 budget authority or outlays. The $6.2\nmillion requested for the Department of Labor \"Welfare-to-Works Job\" program was already\nincluded in the budget totals. The $13 million for the Arms Control and Disarmament Agency is\noffset by a requested reduction of $13 million to the Department of State's Contributions to\nInternational Organizations account, made possible by exchange rate savings. The technical\namendment for the Department of State's Diplomatic and Consular Programs would result in no\nnet increase in FY 1998 budget authority or outlays.\nOMB LABOR BRANCH\nP.20 0202 ON SS:01\n26.01 SEP\nI have carefully reviewed these proposals and am satisfied that they are necessary at this\ntime. Therefore, I join the Secretary of Labor, the Secretary of State, and the Director of the\nArms Control and Disarmament Agency in recommending that they be transmitted to Congress.\nSincerely,\nFully\nFranklin D. Raines\nDirector\nEnclosures\nP.21 .002 ON 95:05\n26.01 SEP\nID:202-395-1596\nOMB LABOR BRANCH\nSeepsfor\nEXECUTIVE OFFICE OF THE PRESIDENT\nwelfareto\nF\nOFFICE OF MANAGEMENT AND BUDGET\nwork\nWASHINGTON, DC 20503\nSTATE\nSeptember 2, 1997\n(Senate Floor)\nSTATEMENT OF ADMINISTRATION POLICY\n(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH.THE.CONCERNED AGENCIES.)\nS. 1061 - DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES,\nEDUCATION, AND RELATED AGENCIES APPROPRIATIONS BILL FY 1998\n(Sponsors: Stevens (R), Alaska; Specter (R), Pennsylvania)\nThis Statement of Administration Policy provides the Administration's views on S. 1061,\nthe Departments of Labor. Health and Human Services, Education, and Related Agencies\nAppropriations Bill, FY 1998, as reported by the Senate Appropriations Committee.\nThe Committee has developed 2 bill that provides requested funding for many of the\nAdministration's priorities. We are pleased that the Committee has fully funded Bilingual and\nImmigrant Education, School to Work, and Education Technology Programs. The\nAdministration is also pleased that the Committee has limited the number of appropriations riders,\nconsistent with the terms of the Bipartisan Budget Agreement. The Senate is urged to continue\nthis practice. As discussed below, the Administration will seek restoration of certain of the\nCommittee's reductions.\nThe Administration is committed to working with the Senate to identify reductions in the\nbill in order to find offsets for the restoration of funds that the Administration seeks. For\nexample, the Committee bill provides nearly $1.5 billion more than the President has requested for\nthree dozen authorities in the Department of Education, while cutting the President's request by\nalmost $2 billion. Similar reallocations are made in other sections of the bill. We strongly urge\nthe Senate to reduce funding for lower priority programs, or for programs that would be\nadequately funded at the requested level, and to redirect funding to programs of higher priority,\nparticularly those specified in the Bipartisan Budger Agreement, as noted below.\nUnfortunately, the Administration understands that a number of controversial amendments\nmay be offered, such as an amendment to halt the President's national testing initiative, an\namendment to prohibit the use of funds in the Act for supervising the Teamster's election, an\namendment to enable states to privatize the administration of public assistance programs, and\nanother amendment to provide that welfare recipients in workfare can be paid at rates below the\nminimum wage. In addition, 8 number of these proposals, as well as certain provisions of the\nCommittee bill. such as the lack of funding for the President's America Reads Challenge, are\ncontrary to the Bipartisan Budget Agreement. If such policies were adopted, particularly in light\nof other concerns raised in this Statement of Administration Policy, the President's senior advisers\nwould be forced to recommend that the President veto the bill.\nII'd 10:50\n10.97 SEP\n96ST-6-0:I\nOMB LABOR BRANCH\nDepartment of Education\nThe Administration appreciates the Committee's efforts to provide substantial new\nfunding for education activities. Unfortunately, the Committee has failed to provide the $260\nmillion necessary for the President's America Reads Challenge in the Department of Education,\nand the bill provides only $16 million of the $42 million requested for America Reads in the\nportion of the Corporation for National and Community Service budget funded by this bill. The\nCommittee has provided advance appropriations for America Reads to the Department of\nEducation for FY 1999. pending new authorization, which would produce a full year's delay in\ngetting needed reading assistance to millions of children. The Bipartisan Budget Agreement\nspecifically calls for funding a literacy program, \"consistent with the goals and concepts of the\nPresident's America Reads program\" at the levels proposed in the President's FY 1998 Budget.\nAmerica Reads is one of the Administration's highest funding priorities. The Administration\nbelieves that full FY 1998 funding for this initiative should be restored to both the Department of\nEducation and the Corporation for National and Community Service activities funded in this bill\nand in the VA/HUD Appropriations bill.\nThe Administration is working closely with the authorizing committees to develop\nlegislation effective for FY 1998. There is ample time to enact legislation. as needed, by\nApril 1 for a program that would begin on July 1. in time for summer activities and the\n1998-1999 school year. The Administration urges the Congress to do so. However, to ensure\nthat funding is provided in a manner consistent with the Bipartisan Budget Agreement, the\nAdministration strongly urges the Congress to include in this Act a provision to make the funds\navailable on April 1 under existing authorities, in the event that final action on the authorization\nbill is not completed in 3 timely manner.\nThe Administration will strongly oppose potential amendments that would bring a halt to\nthe President's national testing initiative. The national tests proposed by the President are critical\nbecause they will. for the first time, provide students. parents, and teachers the opportunity to\nmeasure how well students are performing in comparison to other students nationally and\ninternationally and, as a result, they will help hold schools accountable for the performance of all\nstudents. The Department of Education has the authority to develop these tests under the Fund\nfor the Improvement of Education (FIE) program, which provides the Secretary with the\nauthority to support nationally significant programs and projects to improve the quality of\neducation. We support the Committee report language requiring that the Department of\nEducation contract with the National Academy of Science to conduct an evaluation of the testing\ninitiative. In addition. we support legislation to place overall responsibility for the testing\nInitiative with the independent, bipartisan National Assessment Government Board.\nThe Bipartisan Budget Agreement specifies funding at the levels proposed in the\nPresident's budget for Pell grants, which supports both a $3,000 maximum award and expanded\neligibility for independent students. The Committee bill cuts the Pell request by over $725 million\nfrom the President's request. and thus does not fund the Administration's proposed independent\n?\nP.12 .002 ON 05:05\n26.01 SEP\nID:202-395-1596\nOMB LABOR BRANCH\nstudent policy. The Administration proposes that the appropriation act include one year of\nauthority while the resuthorization process is pending. This authorization is no different from the\nCommittee's annual procedure of authorizing the maximum Pell grant award. In accordance with\nthe terms of the Bipartisan Budget Agreement, we urge the Senate to fully fund Pell grants and to\nauthorize both the maximum award and the independent student change.\nWhile the Committee has exceeded the amount specified in the Balanced Budget\nAgreement for Education Reform, it has achieved this by adding technology funding currently\nwithin another account, rather than funding the full request for current Education Reform account\nprograms. Within the total, Goals 2000 State and local grants are funded at only $500 million,\n$105 million below the request. Goals 2000 funds provide essential support to every State's\neducation improvement straregy. We strongly urge the Senate to restore full funding for Goals\n2000.\nThe Administration urges the Senate to fund Safe and Drug-Free Schools and\nCommunities (SDFSC) at the President's FY98 request of $620 million, $64 million above the\nSenate mark. SDFSC, the largest Federal school-based drug and violence prevention program,\nserves more than 40 million students in over 97 percent of the nation's school districts and is an\nessential component of a comprehensive effort to reduce teen drug use.\nA number of other high priority Education programs are funded significantly below the\nPresident's request. These include Adult Education, College Work-Study, Title I Targeted grants,\nEisenhower Professional Development, Charter Schools, 21st Century Learning Centers, and\neducational research, statistics, and assessment. We urge the Senate to fully fund these activities\nat the levels requested in the President's FY 1998 Budget.\nDepartment of Health and Human Services\nThe Administration is deeply concerned that the Committee has failed to provide $21\nmillion for the Administration's new Adoption Initiative. The goal of this program is to double\nthe number of children adopted or permanently placed outside of child welfare systems by FY\n2002. The additional investment is small compared to the potential rewards of placing children\nin supportive and loving homes. The Administration strongly urges the Senate to fully fund this\nurgently-needed program at the President's requested level.\nThe Administration is pleased that the Committee has provided the requested $40 million\nincrease over FY 1997 for Ryan White AIDS Treatment Grants. and an additional $41 million\nthat could be used by grantees for the purchase of AIDS drugs. The Administration is also\npleased to see that the Committee has allocated these funds roughly as requested in the\nPresident's budget, with an additional $38 million in Title II grants to States which spend a large\nproportion of the Ryan White grants on primary care and drugs for people with HIV and AIDS.\n3\nOMB LABOR BRANCH\n3113 .002 ON 10:51\n26.01 SEP\nThe Administration is concerned that the Committee bill does not appropriate a specific\namount for AIDS research through a single appropriation, as requested in the President's budget\nfor the National Institutes of Health's (NIH's) Office of AIDS Research The single appropriation\nhelps NIH target research funds effectively, minimizing duplication and inefficiencies across the\n21 institutes and centers that carry out HIV/AIDS research.\nThe Committee has funded the Health Care Financing Administration (HCFA) program\nmanagement activities at $1,719 million, $55 million below the President's request. The\nCommittee's funding level could hinder HCFA's efforts to comply with year 2000 systems\nrequirements and perform the CFO audit. In addition the Committee's action could make it\ndifficult to consolidate HCFA's current contractor systems, which needs to occur prior to, and\nindependent of, final resolution of the Medicare Transaction System The requested funds in the\nPresident's 1998 budget request are necessary to implement the Medicare and Medicaid\nprovisions of the Balanced Budget Agreement, including the savings provisions and new program\nauthorities, such as Children's Health and the Medical Savings Accounts (MSAs). To the extent\npossible, we urge the Senate to fund HCFA program management at the requested level.\nThe Committee has rescinded S21 million in mandatory research funds The President's\nrequest assumes $18 million in discretionary and $21 million in mandatory welfare research funds,\nfor a total of $39 million. In order to gauge the effects of welfare reform, research is needed now\nmore than ever. The Administration urges the Senate to drop the rescission and to fund welfare\nresearch at the President's requested level. To ensure that welfare reform is successfully\nimplemented across the nation, it is vital that we understand what has been successful and what\nhas not been successful in the various states.\nThe Administration supports efforts to encourage minors to discuss their health care needs\nwith their families. However, it would oppose a potential smendment on the Senate floor\nrequiring parental consent for minors to receive reproductive health services in Title X Family\nPlanning clinics. Mandating parental consent could discourage sexually active minors from\nseeking health care and reproductive counseling services and thus lead to more unwarranted\npregnancies, more abortions and more sexually transmitted diseases, including HIV, among our\nnation's youth.\nDepartment of Labor\nThe Bipartisan Budget Agreement specifies funding at the levels proposed in the\nPresident's budget for Training and Employment Services (TES), including Job Corps. The\nCommittee mark provides the Administration's request for low-income youth training programs,\ndislocated workers, and the Job Corps. However, in order to be consistent with the Agreement,\nwe urge the Senate to provide an additional $285 million to fully fund the request for TES\nprograms in FY 1998. The Committee has provided $250 million in FY 1999 for the Youth\nOpportunity Area proposal. subject to enactment of authorizing legislation by April 1. 1998. This\n4\nDid 0202 ON 10:52\n26.01 SEP\n96I-6-0:0I\nOMB LABOR BRANCH\nprogram is an essential component of the Administration's Empowerment Zones/Enterprise\nCommunities initiative. It may be carried out under existing legislation, and a separate\nauthorization is not necessary. The Senate is urged to provide resources for this initiative in\nFY 1993, without the restriction provided by the Committee.\nThe Administration appreciates the Committee's allocation of $150 million to help finance\nthe year 2000 conversion of State Unemployment Insurance (UI) systems. However, that amount\nis $50 million below the level needed to ensure that the year 2000 costs are met. In addition, the\nCommittee has failed to provide $89 million for spending on UI \"integrity\" initiatives\n(e.g., increased eligibility reviews, tax audits). This spending is explicitly assumed in the Balanced\nBudget Act of 1997, and would over five years, achieve $763 million in mandatory savings\nassumed in the Act. The Senate is urged to provide this increase and the increase for year 2000\nconversion costs.\nOn July 17, 1997, the President sent to Congress a budget amendment for $6.2 million\nfor the Labor Department to administer the $3 billion Welfare-to-Work program. This program is\nincluded in the Balanced Budget Act of 1997, effective October 1, 1997. We urge the Senate to\nadd these funds to this appropriation bill so that the administrative resources needed to move\nX\nlong-term welfare recipients off welfare and into lasting, unsubsidized employment are available\non a timely basis.\nThe Committee has provided 5990 million, an increase of $41 million over the FY 1997\nenacted level, for the Department of Labor workplace protection programs, about 60 percent of\nthe proposed increase. Without the requested increases, the Department would not be able to\ncarry out a balanced program of targeted enforcement, with expanded partnerships and\ncompliance assistance in the regulated community. Nor would the Department be able to\nstreamline its operations to provide assistance to small businesses in complying with various\nworkplace laws and related executive orders, such as the systems and technical assistance\nimprovements requested for the Office of Federal Contract Compliance. In addition, the Senate is\nurged to provide the requested level for the Bureau of Labor Statistics to ensure the continued\naccuracy and reliability of all of the Bureau's statistical programs. Funding for the independent\nNational Labor Relations Board has been frozen, a cut of $11 million below the request. The\nAdministration urges the Senate to enact the Administration's request for these programs.\nSocial Security Administration\nThe Committee has provided $245 million for additional Continuing Disability Review\n(CDR) funding and SSI reforms implementation $45 million less than the President's request.\nThe Balanced Budget Act of 1997 contains a provision that would provide authority for a $290\nmillion upward cap adjustment ($45 million more than current law) to the non-defense\ndiscretionary spending caps for funding provided by the Committee for additional CDRs. This is\nconsistent with the President's request. Failure to provide the additional funds would mean that\nsome 15 percent fewer individuals would have their status reviewed in FY 1998. potentially\n5\n10:53 No.002 P.15\n26.01\nSEP\n96T-6-0:0\nOMB LABOR BRANCH\ncosting hundreds of millions of dollars in benefits to individuals who would have been found no\nlonger eligible. We urge the Senate to provide the additional 545 million.\nThe Committee has reduced funding for the Office of the Inspector General (IG) by $7\nmillion from the President's request of $44 million and for research and demonstration projects by\n$9.7 million from the President's request of $16.7 million. The reduction to the IG request would\nhamper the IG's ability to perform audits and investigations needed to prevent fraud, waste, and\nabuse and to assure program integrity. The reduction in research and demonstration funding\nwould reduce SSA's ability to understand the reasons for growth in the disability programs and\nimplement initiatives intended to improve SSA's reçord in returning disabled beneficiaries to\nwork The Administration urges the Senate to restore funding to the maximum extent possible in\nthese two key areas,\nAdditional Administration concerns with the Committee bill are contained in the\nattachment.\nAttachment\n6\n10:53 No.002 P.16\n26.01 SEP\n961-6-0:I\nOMB LABOR BRANCH\nAttachment\n(Senate Floor)\nADDITIONAL CONCERNS\nS. 1061 - DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES,\nEDUCATION. AND RELATED AGENCIES APPROPRIATIONS BILL FY 1998\n(AS REPORTED BY THE SENATE COMMITTEE)\nThe Administration looks forward to working with the Congress to address the following\nconcerns\nDepartment of Health and Human Services\nCommunity Schools: Violent Crime Reduction. While the Administration\nsupports the Committee's funding of Violence Against Women Act programs, the\nCommittee has provided no funding for the Community Schools program within\nthe Violent Crime Reduction Programs account. We urge the Senate to restore\nfunding for these programs.\nAging Services Programs Within the Administration on Aging, the Committee\nhas provided no funding for the Alzheimer's Initiative: This important program\nwould provide critical resources for the elderly.\nMedicare Survey and Certification User Fees. The President's budget proposes\ntotal funding of $158 million for the surveys and certification program, $148\nmillion in budget authority and $10 million in user fees. The Committee has\nprovided $158 million in budget authority while failing to enact the $10 million in\nuser fees. The Administration believes that health care providers who derive\nconsiderable benefit from the Medicare program should fund the cost of\nconducting initial surveys required for entry into the program We urge Congress\nto enact the Administration's survey and certification user fee proposal.\nHead Start. The Administration is concerned that the Senate Committee. while\nproviding the full request for Head Start, would make the funds available in a\nmanner that is inconsistent with the Head Start Act. It appears that the Committee\nintends to double the amount of funding for the Early Head Start program out of\nthe overall increase provided for Head Start over the FY 1997 appropriation. We\nurge the Senate to provide these funds in accordance with the bipartisan\nauthorizing statute in order to support the President's goal of serving one million\nchildren by FY 2002.\nAdditional Health Concerns. The Administration is concerned that the Committee\nhas not provided the full request for Health Resources and Services Administration\n(HRSA) Organ Transplantation, Substance Abuse and Mental Health Services\n10:54 No.002 P.17\n26.01 SEP\nOMB LABOR BRANCH\nAdministration (SAMHSA) Data Collection activities, the Agency for Health Care\nPolicy and Research, and the Office for Civil Rights, To the extent possible, we\nurge that the requested funding level be provided.\nSocial Security Administration\nUser Fees. The Committee has included language to authorize increases to the fee\nStares pay SSA for administering State payments that are supplemental to SSI\nbenefits. and provide for such funds to be available, subject to appropriations\naction, upon collection for SSA administrative expenses. This provision is\nidentical to language in the Balanced Budget Act of 1997, which also includes a\nprovision directing that these additional fees shall be credited as a discretionary\noffset to discretionary spending to the extent that the amounts are made available\nfor expenditure in appropriations acts. The Administration commends the\nCommittee's actions and suggests that the Senate delete the language that is\nduplicative.\n2\n10:54 No.002 P.18\n26.01 SEP\n96I-6-:0I\nOMB LABOR BRANCH"
}