Statement of Administration Policy: H.R. 2493 - Department of Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Bill, FY 1994

(House Floor)
(Sponsors: Natcher (D), Kentucky; Durbin (D), Illinois)

This Statement of Administration Policy expresses the Administration's views on H.R. 2493, the Department of Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Bill, FY 1994, as reported by the House Appropriations Committee. The Administration supports House passage of H.R. 2493 and will work with Congress to address the concerns described below and in the attachment.

President's Investment Program

The Administration supports the Committee's action that funds many of the President's investment proposals, including full funding for the food safety and Food and Drug Administration proposals. The Administration commends the Committee for its support of the Women, Infants, and Children program.

Wetlands Reserve Program

The Administration urges the House not to alter current law by again restricting sign-ups for the Wetlands Reserve Program (WRP). The 1990 farm bill requires a minimum of one million acres to be enrolled in the WRP by the end of FY 1995. The Administration has proposed to fund 450,000 acres in FY 1994 toward this target, but the Committee bill would allow only 50,000 acres to be enrolled. This restriction is particularly troublesome since FY 1993 sign-ups were blocked by the FY 1993 appropriations act. The WRP is a crucial part of the Administration's wetlands restoration and preservation plans, and the Administration believes that full funding for this mandatory program should be restored. At a minimum, appropriations action should be consistent with both the House and Senate versions of the 1993 reconciliation bill, which prescribe that a minimum of 330,000 wetlands acres be enrolled by the end of FY 1995.

Research Grants

The Committee has chosen to fund earmarked special research grants at the expense of the National Research Initiative, the competitively awarded grant program. These earmarked special grants would address primarily local and parochial research issues, rather than problems of national significance facing the nation's food, agricultural, and environmental sectors. The Administration believes that the most appropriate way to allocate scarce research funds is through a competitive process based on merit in which any research institution can apply.

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

Attachment

Attachment
(House Floor)

ADDITIONAL CONCERNS

H.R. 2493 — AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS BILL. FY 1994

(AS REPORTED BY THE FULL COMMITTEE)

The administration looks forward to working with the Congress later in the process in an effort to address the following concerns:

FUNDING ISSUES

• Rural Development Administration. The Administration opposes the termination of the Rural Development Administration (RDA) and the merging of RDA's functions into the Farmers Home Administration (FmHA). Highlighting the needs of rural America is a top Administration priority, and the existence of a separate agency to address these concerns is an important element of the Administration's rural development policy. By fully funding the RDA structure, the House would be able to close some FmHA district offices and eliminate the duplication of field structures that currently exists because the RDA has not been fully funded.
  
  
• Rural Electrification Administration (REA). The Administration commends the Committee for reducing REA subsidies but objects to excessive subsidies for hardship telephone loans. The Committee bill would provide the same amount of loans made at five-percent interest to telephone borrowers as it would to electric borrowers, even though there are far fewer telephone borrowers deserving of the deep subsidy. The level of telephone loans made at hardship interest rates should be reduced to $50 million, and the current pro-rata allocation of hardship loans between electric and telephone borrowers should be retained.
  
  
• Federal Crop Insurance Corporation. The Committee bill includes a proviso that would eliminate the issuance of poor crop insurance policies. The Administration has also proposed necessary reforms of the crop insurance program. While the Administration has some concerns with the Committee language, we commend the Committee for taking on this issue. The Administration is committed to working with the Congress on needed reform.
  
  
• Food and Drug Administration (FDA) User Fees. The Administration is pleased that the Committee has allowed the FDA to utilize up to $54 million in user fees collected under the Prescription Drug User Fee Act. The Administration notes that another $200 million could be collected if restrictive language were deleted from the bill. Deletion of this language would permit funding of high priority programs elsewhere in the bill that currently are not funded.
  
  
• Farm Service Agency. The Committee has not funded the Administration's proposal to create a Farm Service Agency, which would combine the Agricultural Stabilization and Conservation Service, the Farmers Home Administration, and the Soil Conservation Service. This proposal is a key element of the Administration's initiative to streamline Government while improving service to clients.
  
  
• Salaries and Expense funding from mandatory accounts. The President's budget proposes to eliminate the transfers of funds for administrative equipment and computers from the mandatory Commodity Credit Corporation account, and instead to fund these purchases through appropriations. Because discretionary savings would be scored for eliminating the mandatory funding, no net outlays would be scored to the bill if this proposal were enacted. Continued mandatory funding does not foster the necessary careful consideration of equipment purchases, nor does it adequately reflect the true discretionary nature of these costs.
  
  
• Foreign Agricultural Service (FAS). The Administration has proposed a $10 million reduction in the Cooperator program of FAS, which the Committee bill did not include. FAS can achieve its export promotion objectives within the budget's proposed levels. FAS can increase the cost-share amount it currently requires target funding to areas where the greatest export opportunities exist rather than continue funding in the same established locations, and reduce the funds used to pay rent and administrative expenses of the participating private sector cooperators.
  
  
• Rental Payments to GSA. The bill earmarks $65.5 million ($50.5 million to the Department of Agriculture and $15.0 million to the Food and Drug Administration) out of the amounts appropriated for the payment of rent to GSA. Reservation of these funds for other uses would result in insufficient funds being available for making rental payments to GSA.

GENERAL PROVISIONS

• Credit Limitations. Section 721 would make all loan levels provided in the bill estimates, not limitations. Limits on subsidies contribute to deficit controls. Limits on loan levels contribute to controls over the individual programs. The Administration urges the House to delete Section 721.