Statement of Administration Policy: H.R. 4624 - Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 1995

(Senate Floor)
(Sponsors: Byrd (D), West Virginia; Mikulski (D), Maryland)

This Statement of Administration Policy provides the Administration's views on H.R. 4624, the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 1995, as reported by the Senate Appropriations Committee. The Administration strongly supports passage of H.R. 4624 as reported by the Committee and will work With Congress to address the concerns described below.

NASA and Space Station

The Administration appreciates the support that the Senate has provided for the NASA budget in general, and for the space Station in particular. The Administration would strongly oppose any attempt to cancel or reduce funding for the Space Station program.

The Administration welcomes the Committee's $4OO million recommendation for initial construction and related costs of two new aeronautic wind tunnels in anticipation of an Administration decision in the Fall. The Administration is evaluating options in this area and welcomes the opportunity to develop a strategy for site selection and government-industry cooperation in the event that a positive decision is made.

Corporation for National and Community Service

The Administration appreciates that the Committee was able to find within its allocation the resources to finance the requested increase for the President's national service initiative. The Administration considers this program one of its top priorities and is anxious to work with the Congress to finance the program at the requested level.

Community Development Financial Institutions (CDFI)

The Administration commends the Committee for providing funding for this priority Presidential investment. However, the $25 million provided is considerably lower than the $144 million requested in the President's budget. The Administration urges the Congress to provide substantial funding for the CDFI program. This program is a key component of the President's investment strategy for reversing economic decline in our nation's distressed rural and urban communities.

Housing and Urban Development (HUD)

The Administration is pleased with the Committee's decisions to provide resources for many of the President's investment priorities, including expanded homeless assistance, fair housing enforcement, and nearly 60 percent of the requested increase in the number of housing vouchers for low-income households. In addition, we appreciate the Committee's efforts to adopt several Administration proposals to reform rent subsidy calculations. Given overall budget constraints, these efforts are needed to reduce future outlays.

The Administration, however, is concerned about the Committee's decision to reduce funding for a number of the President's investment priorities, such as the Choice in Residency initiative. This initiative would expand the range of housing choices available to low-income parents and thus provide them and their children with the opportunity to move closer to good jobs and schools. An additional concern is the Committee's decision not to set aside $514 million of Section 8 rental assistance to reduce homelessness. Providing permanent housing assistance is a critical factor in the Administration's efforts to reduce homelessness. The Administration will work with the Congress to provide the requested funding of these programs in the final bill.

We are very concerned that the Committee's decision to reduce the request for salaries and expenses by $28 million, primarily in personal services, would adversely affect the administration of the Department's programs due to a reduction of over 450 FTE positions.

Federal Emergency Management Agency (FEMA)

The Administration opposes the Committee's $5.6 million reduction in Salaries and expenses, as well as the $12.6 million general reduction and $5.2 million of earmarks in Emergency management planning assistance. These reductions would prevent FEMA from meeting essential aspects of its mission. The Administration will work with the Congress to restore funding to the President's request.

Veterans Affairs (VA)

The Committee has increased the request for VA Medical Care by $111 million, for a total increase of $611 million above the FY 1994 enacted level. The Administration believes that the $500 million increase over the FY 1994 level provided by the President's request is more than sufficient to meet the current level of services provided by VA Medical Care.

The Committee has also increased the request for VA Major Construction by $92.5 million. Not only would this increase provide funds for lower priority, unrequested projects, but it would also have a significant impact on outlays in the out-years.

Committee report language would purport to require the Secretary to maintain the FY 1994 FTE level for Medical Care through a combination of Federal and contract staff. This requirement would interfere with the Executive Branch's ability to manage the Medical Care program.

Environmental Protection Agency (EPA)

The Administration appreciates the support the Committee has provided for EPA's budget. In particular, the Administration commends the Committee for the increases it has approved tor EPA's operating programs.

The Administration, however, strongly opposes the Committee's proposal to reduce Superfund by $300 million as an offset to proposed new mandatory spending that would fund "orphan shares" at Superfund sites. Orphan shares funding is an integral part of the Administration's proposal to overhaul the Superfund program. Mandatory Federal funding of orphan shares will significantly speed the pace of Superfund cleanup without creating additional demand for appropriated discretionary funding. As EPA does not currently fund orphan shares, the Committee's recommendation would have the effect of reducing core Superfund activities, crippling the cleanup program, and damaging chances for enacting needed legislative reforms. The Administration urges the Senate to restore funding for Superfund by reducing wastewater infrastructure funding to the requested level. The Administration recognizes the responsibility of the Appropriations Committees for Superfund and looks forward to working with the Congress to resolve any outstanding issues concerning the funding of this program.

The Administration appreciates the increases that the committee has provided for EPA's operating programs — the most important component of Federal environmental spending. However, the Administration is concerned about two reductions contained in the Committee mark. First, the additional Senate reduction in the Program and Research Operations account poses a significant problem because it would force the Agency to scale back the contractor conversion initiative — a key piece of EPA's efforts to improve contract management. Second, the Montreal Protocol reduction would prevent the U.S. Government from fulfilling an international commitment to protect the ozone layer, which will have significant health benefits for U.S. citizens.

The Administration opposes all attempts to block BPA rulemakings by prohibiting the use of funds to sign or implement regulations. In particular, as the president indicated in his July 22nd letter to the Majority Leader, the Administration would strongly oppose any attempts to overturn EPA's final rule requiring the use of renewable oxygenates in reformulated gasoline or EPA's proposed rule establishing foreign refinery baseline requirements for reformulated gasoline.

Chemical Safety and Hazard Investigation Beard

The Administration urges the Senate to restore FY 1995 funding for the chemical Safety and Hazard Investigation Board. The President will nominate individuals for the Board shortly, and the Board needs funds to operate during FY 1995. Given the delay in the Board's establishment, a rescission of remaining FY 1994 funds could be used as a partial offset to restore FY 1995 funding.

National Science Foundation (NSF)

The Administration appreciates the Senate's strong support for the National Science Foundation. However, in the report accompanying the bill, the Committee has recommended a $33 million decrease in the global climate change initiative, which has been identified by the National Science and Technology Council as an important priority for FY 1996. The Administration would appreciate the Senate's support in providing NSF with the flexibility of shifting funding to this important program within the overall total provided for the Research and Related Activities account.

In addition, the Committee has added $245 million to NSF's Academic Research infrastructure account. The Administration is currently developing an inter-agency strategy for infrastructure renewal and welcomes the opportunity to work with the Congress in developing this effort.