Statement of Administration Policy: H.R. 2002 - Department of Transportation and Related Agencies Appropriations Bill, FY 1996

(Senate Floor)
(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. The Administration prefers the overall spending level provided by the Senate bill compared to the House. While the House bill is over $1.1 billion in budgetary resources above the President's request, the Senate is, on a comparable basis, approximately at the level requested by the President.

The Administration strongly supports efforts to provide the Department with flexibility to carry out its programs more efficiently in light of constrained resources. This includes fast-track authority for a departmental reorganization plan and Federal Aviation Administration (FAA) personnel and procurement reform, which the Administration has proposed as part of comprehensive FAA reform. 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.

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 not be considered on an agency-by-agency basis in particular appropriations bills.