Statement of Administration Policy: H.R. 4783 - Labor, Health and Human Services, and Education, and Related Agencies Appropriations Bill, FY 1989

(Senate)
(Sponsors: Stennis (D), Mississippi; Chiles (D), Florida)

There are a number of seriously objectionable provisions proposed by the Committee, especially language to expand Medicaid coverage to include certain abortions. The Senate is urged to strike this provision, which diverges from a long-standing policy on this issue. If the bill were presented to the President in its present form, the President's senior advisors would recommend that he veto this bill, solely based on the inclusion of this language provision.

The Administration is also opposed to the provision that would establish a moratorium on reversions of pension plan assets to sponsors upon plan termination. Such a substantial change to the pension law should not be enacted in appropriations legislation. Furthermore, a moratorium is unnecessary and counterproductive. It would penalize employers who properly fund their defined benefit pension plans and would discourage them from establishing and maintaining those plans, which provide the most certain and secure retirement income for employees. Congress and the Administration explicitly rejected this type of change and affirmed current law in the Omnibus Budget Reconciliation Act of 1987.

The Committee bill provides budget authority for discretionary programs at $50 million below the President's request. The Administration supports the overall discretionary funding level, but urges the Senate to reallocate funds to support fully the President's priorities rather than the proposed increases for small categorical programs or expansion of low-priority services. A number of increases to the President's request are either inappropriate or unnecessary. The most seriously objectionable funding provisions include:

—    an increase of $386 million over the President's request for currently authorized job training programs in the Training and Employment Services (TES) account;

—    an increase of $76 million over the President's request for the National Institutes of Health, a request that already represents a 5.4 percent increase over FY 1988, excluding AIDS;

—    additional increases in discretionary Department of Education accounts above the 4 percent increase proposed in the President's Budget;

—    continuation of outmoded health professions categorical training subsidies, $177 million in excess of the President's request;

—    an unwarranted 15 percent increase for Health Resources and Services Administration (HRSA) overhead costs at a time when HRSA program responsibilities are declining; and

—    increases for narrow categorical programs that the Administration did not request.

The Administration urges the Senate to fund these and other programs at the levels requested by the President.

The Senate should also consider a number of proposed changes included in the FY 1989 Budget. The Administration urges the Senate to act on legislation to replace the current trade adjustment assistance and dislocated worker assistance programs with the Worker Readjustment Program (WRAP). Similarly, the Administration also recommends that the Senate adopt the Administration's AIDS funding consolidation to permit maximum flexibility in AIDS spending plans. The Administration also recommends that the Senate include proposed improvements to the Health Education Assistance Loan (HEAL) program to ensure the continued financial solvency of the insurance fund.

The Administration commends the Senate Committee recommendation that provides the President's request for the Low Income Home Energy Assistance Program. The Senate is urged not to increase funding for this program because of the availability of oil overcharge funds and the continual decline in the percent of income eligible households pay for heat.

The Administration urges the Senate to delete the abortion language and address the other concerns raised so the President is presented a FY 1989 Labor, Health and Human Services, and Education, and Related Agencies Appropriations Bill he can sign.