Statement of Administration Policy: H.R. 2403 - Treasury Postal Service, and General Government Appropriations Bill, FY 1994

(Senate Floor)
(Sponsors: Byrd (D), West Virginia; DeConcini (D), Arizona)

This Statement of Administration Policy provides the Administration's views on H.R. 2403, the Treasury, Postal Service, and General Government Appropriations Bill, FY 1994, as reported by the Senate Appropriations Committee. The Administration supports Senate passage of H.R. 2403 and will work with Congress to address the concerns described below and in the attachment.

President's Investment Program

The Administration commends the Senate Committee for fully funding the Administration's Tax System Modernization investment proposal and the requested Tax Law Enforcement initiatives. The investment in modernizing the Internal Revenue Service (IRS) will improve service to taxpayers, increase the productivity of IRS operations, and increase tax compliance. The tax law enforcement initiatives will provide IRS with resources to address serious tax compliance problems and increase revenue collections.

Federal Employees Health Benefits Program

The Administration strongly supports the Committee's decision to delete a provision of the Subcommittee bill that would have prohibited the use of funds to pay for abortions or for administrative expenses in connection with any health plan under the Federal Employees Health Benefits (FEHB) program that provides benefits or coverage for abortions. This provision has been used in the past to deny Federal employees and their dependents the ability to choose to spend their FEHB premiums on a health plan that provides coverage for abortions. The Administration would strongly object to any amendment that would attempt to reinstate this provision.

Treasury FTE Levels and Floors

The Committee bill would add funds to the Departmental Offices; the U.S. Customs Service; the Bureau of Alcohol, Tobacco and Firearms (BATF); and the United States Secret Service for the purpose of increasing FTE levels above those requested. In addition, the Committee has added bill language setting FTE floors for BATF, Customs, Departmental Offices, and the Office of Foreign Assets Control. To the extent that the additional funds would be used for staff increases, other Treasury bureaus would be required to reduce staff further in order to comply with the President's Executive Order mandating reductions in Federal civilian employment. The Executive Order is an important element in the Administration's effort to reduce Federal spending and bureaucracy.

FTS 2000

The Administration is concerned that the Committee has not included requested language on the use of the FTS 2000 program. Language mandating use of the FTS 2000 program has been enacted every year since FY 1988. Removal of the provision could weaken the effectiveness of the program.

Additional Administration concerns with the Committee bill are contained in the attachment.

Attachment

Attachment (Senate Floor)

ADDITIONAL CONCERNS

H.R. 2403 — TREASURY, POSTAL SERVICE AND GENERAL GOVERNMENT APPROPRIATIONS BILL. FY 1994

(AS REPORTED BY THE COMMITTEE)

The Administration looks forward to working with the Congress to address the following concerns as the appropriations process progresses.

Executive Office of the President

National Security Council (NSC). The Administration objects to the Committee's transfer of the Information Security Oversight Office (ISOO) from the General Services Administration (GSA) to the NSC. The NSC advises the President on the integration of domestic, foreign, and military policies relating to national security. Although ISOO has some limited policy integration functions, its primary mission is to monitor and oversee the information security programs of the Executive Branch. Transfer of the ISOO is inconsistent with both the President's prerogative to organize the White House staff and a recent Executive Order to reduce that staff.

Department of the Treasury

Customs Service/Federal Law Enforcement Training Center (FLETC). The Administration objects to the addition of $6 million for FLETC construction and $10 million for Customs Service air facilities construction. The FLETC funding is premature and possibly unnecessary. The Administration will review facility needs and the possible use of existing sites as part of a comprehensive plan. The Administration does not believe that there is a need for further Customs construction at this time.

Law Enforcement Pay. The Administration objects to a provision that would extend the law-enforcement pay differential for the Washington, D.C. metropolitan area to the entire Washington-Baltimore consolidated metropolitan statistical area (CMSA). When this differential was enacted, no premium was deemed necessary for those areas outside of Washington that now form part of the Washington-Baltimore CMSA. The Administration is not aware of any new circumstances that would justify the added costs of the extension.

Electronic Benefits Transfer (EBT). The Administration has launched an initiative to implement EBT nationwide and is pleased that the Committee supports EBT. Nevertheless, the Administration objects to report language that would appear to direct the Department of the Treasury to lead Executive Branch efforts to organize and implement the EBT program. The Administration does not plan to centralize authority for EBT in any one agency at this time.

General Services Administration (GSA)

Federal Buildings Fund. The Committee bill contains full and partial funding for a number of Federal building projects that were not included in the President's budget. Many of these projects were reviewed as part of the FY 1994 budget process and were not approved. Other projects added by the Senate were not included in GSA's FY 1994 capital plan.

Office of Personnel Management (OPM)

Federal Employees Health Benefits (FEHB). The Senate Committee report would direct 0PM to continue the "Phantom Big Six" formula for calculating the employer share of FEHB premiums, but does not provide sufficient funds to carry out the directive. An additional $346 million would be needed to fund the payment for annuitants account fully. The House bill would direct 0PM to continue the "Phantom Big Six" formula and would provide additional monies for the increased cost to the government.

Other Concerns

Administrative Conference of the United States (ACUS). The Committee bill would fund ACUS at $1.8 million, $500 thousand less than the President's request. The House bill would eliminate all funding for ACUS. The Administration supports the Committee's decision to continue funding ACUS. However, the reduced funding level would force reductions in critical activities, such as negotiated rule-making and alternative dispute resolution, that improve the efficiency and effectiveness of administrative processes.

Infringements on Executive Authority. There are several provisions in the bill that would require Congressional approval prior to 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 ruling in INS vs. Chadha.