Statement of Administration Policy: H.R. 2519 - Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Bill, FY 1994

(House Floor)
(Sponsors: Natcher (D), Kentucky; Smith (D), Iowa)

This Statement of Administration Policy provides the Administration's views on H.R. 2519, the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Bill, FY 1994, as reported by the House Appropriations Committee. The Administration supports House passage of H.R. 2519 and will work with the Congress to address the concerns described below and in the attachment.

President's Investment Program

The Administration supports the Committee's action that fully funds the investment proposal for the Economic Development Administration, and funds a significant portion of the proposals for the National Institute of Standards and Technology, the National Oceanic and Atmospheric Administration, and the National Telecommunications and Information Administration.

While agreeing with many of the decisions made by the Committee and understanding the difficult choices it faced, the Administration is concerned about the funding provided for the President's law enforcement investment priorities. The Committee's recommendation would provide only $154 million of the more than $400 million requested. This level of funding would substantially reduce the hiring of new local police and immigration border inspectors, reduce critical investments in detention facilities for criminal and deportable aliens, prohibit the opening of much-needed new prisons, and delay the implementation of instant background checks for prospective handgun purchasers.

The Administration believes that reductions in requested funding for investment proposals could be restored, in part, through a reallocation of funding included in the Committee bill for lower priority, earmarked, or unrequested programs.

Department of Justice

The Administration commends the Committee's decision to remove the prohibition on funding of abortions for Department of Justice Programs and urges the House to support the Committee's decision.

The Administration is concerned that funding levels included in the bill for various detention programs of the Department of Justice would threaten the Department's ability to conduct these programs, including the processing and housing of Cuban and Haitian entrants. Although some increases have been provided, the rate of growth in detention requirements and the scarcity of detention space justify a higher level of resources.

Department of State

The Administration is concerned about the Committee's proposed reductions in State Department funding for assessed payments to international organizations and peacekeeping activities as well as arrearage payments. The reduction in funding for United Nations (UN) peacekeeping activities would come at a time when the United States and the world community are calling on the UN to do more to provide humanitarian assistance, promote peaceful resolution of civil conflicts, and protect democracy around the globe. The United States must fulfill its treaty obligations to the UN and other international organizations and pay our required share.

Legal Services Corporation (LSC)

The Administration opposes the Committee's retention of the numerous prohibitions on the use of LSC funds. Prohibitions on funding should be examined by a new Board and dealt with in reauthorization legislation, not in appropriations language.

Other Issues

The Administration would oppose an amendment, if offered, to eliminate funding for most Small Business Administration programs.

The Administration would oppose an amendment, if offered, to reduce funding for the Board for International Broadcasting. The funding level approved by the Committee is necessary in order to proceed effectively with the Administration plan to reorganize international radio broadcasting.

The Administration would oppose an amendment, if offered, to eliminate funding for the Asia Foundation.

Attachment
(House Floor)

ADDITIONAL CONCERNS

H.R. 2519 — DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS BILL. FY 1994

(AS REPORTED BY THE FULL COMMITTEE)

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

FUNDING ISSUES

Department of Commerce

Shortfall in Funding For Statistics. The Administration is concerned that base funding has been dramatically scaled back for the Census Bureau's planning efforts for Census 2000. Funding for Census 2000 planning will help to determine the most effective mechanism for gathering and disseminating accurate, timely population data. No funds have been provided to either the Bureau of Economic Analysis or the Census Bureau for the improvement of economic statistics, including environmental accounting. These funds could prevent further erosion in the quality of the nation's economic statistics. Such statistics are a primary tool for policy officials interested in the health of the U.S. economy.

National Oceanic and Atmospheric Administration Weather Service. The Administration requests full funding for weather service systems acquisitions. Failure to provide the full request will delay the implementation of the modernized weather service, add outyear costs, and may risk public safety if antiquated equipment fails.

Department of Justice

Immigration and Naturalization Service (INS). Additional funds for INS' Investigations and Legal Proceedings programs are necessary to increase INS' capability to identify deportable criminal aliens expeditiously and to remove them from the U.S. immediately upon their release from Federal, State, and local facilities. These programs have been proven effective based on past experience.

Department of Transportation

Maritime Administration. Ready Reserve Force. While the Committee has provided $300 million for the Ready Reserve Force, as requested by the Administration, the mix of funding has been substantially affected. Specifically, the Committee has provided more for operations and less for ship acquisition. The Administration's proposed mix of funding is consistent with national defense requirements.

Small Business Administration (SBA)

Business Loans Program Account. The Committee bill does not reflect the Administration's proposed Section 7(a) reforms to: 1) impose a fee on loans sold in the secondary market; and 2) reduce the SBA share to an average of 75 percent. These reforms would reduce the subsidy rate on Section 7(a) loans from 4.92 percent down to 2.35 percent. Accordingly, the level of funding provided — although higher than requested in the President's budget — would likely result in a nearly $3 billion shortfall in loan guaranty) authority, leading to a shutdown of the program for much of FY 1994. The Administration believes it is essential that its proposed reforms be adopted by the Congress.

Disaster Loans Program Account. The Administration is also concerned that unless the Congress adopts reforms in the Disaster Loan Program Account, the funds in the bill will support nearly $118 million less in lending than the President's request.

Securities and Exchange Commission (SEC)

Operating Expenses. The Committee bill provides $198 million less than the SEC needs to carry out its program. The Administration has proposed offsetting this difference with an increase in SEC registration fees deposited as offsetting governmental receipts in a special fund.

United States Information Agency

International Broadcasting (USIA). The Administration requests restoration of broadcasting funds for Cuba. In addition, the Administration urges the House to provide adequate funding to begin an Asian Democracy Radio Service. These services are vital to our efforts to promote democracy abroad.

National Endowment for Democracy. The Administration strongly urges an increase in funding for the National Endowment for Democracy (NED) over FY 1993 levels. The NED is essential to our efforts to promote democracy abroad, a central tenant of the Administration's foreign policy.

OTHER ISSUES

Department of Commerce

Information Infrastructure Grants. The Administration is pleased to note that the Committee has included language in the Information Infrastructure Grants appropriation that would allow the Department to consider a broad range of projects. This authority will support the creativity of potential applicants.