Statement of Administration Policy: H.R. 2989 - Treasury, Postal Service, and General Government Appropriations Bill, FY 1990

(Senate Floor)
(Sponsors: Byrd (D), WV; DeConcini (D), AZ)

Under CBO scoring, the FY 1990 Treasury, Postal Service, and General Government Appropriations Bill is properly consistent with the House and Senate 302(b) allocations for discretionary budget authority. Based on the Office of Management and Budget's preliminary estimates, the bill is $30 million below the Senate's 302(b) allocations for budget authority and $171 million above for outlays. The attached table provides the OMB's scoring of the bill. The Administration is also pleased with the Senate's proposed funding levels for the Internal Revenue Service, which met the Bipartisan Budget Agreement revenue initiative assumptions.

The Administration supports the Committee's elimination of $30 million in Federal subsidies for commercial advertisers who "piggy-back'' on reduced rate mail sent by non-Drofit organizations. There is no justification for forcing the taxpayers to subsidize commercial advertising for luxury travel, insurance, and other items.

The Administration is concerned with several provisions in the bill. Section 615 of the General Provisions, which restricts the President's ability to implement and enforce non-disclosure agreements, is objectionable because, on its face, it raises significant constitutional concerns. These concerns are raised by imposing restrictions on the Executive Branch's authority to interpret or enforce non-disclosure agreements.

In addition, the Administration strongly objects to the Committee's failure to appropriate the requested $136 million for the Special Forfeiture Fund of the Office of National Drug Control Policy. Congress created this fund eight months ago and it is an integral part of the Administration's anti-drug funding strategy. Failure to appropriate these funds means that there would be no funds available for High Intensity Drug Trafficking Areas and insufficient funds for Federal prison construction. The Committee's explicit acknowledgment that funds will be required in FY 1990 is the strongest of arguments that this funding should be addressed in this appropriation bill.

The Administration is also concerned that the bill would preempt the decisions the General Services Administration and the Office of Management and Budget have made following a joint study on real property financing. The study determined that there is a need for authorization to enter into $2.5 billion of least-cost financing mechanisms (no more than 75 basis points above comparable Treasury rates) and to exempt these transactions from the Anti-Deficiency Act. The Administration is concerned that Congress will not provide authority to enter into arrangements that will meet the need at the lowest possible cost to the government.

The Administration's concerns are discussed in more detail in the attachment.

Attachment