Statement of Administration Policy: H.R. 5026 - Dire Emergency Supplemental Appropriations Bill, Fiscal Year 1988

(House)

The Administration strongly opposes the enactment of this bill.

As an integral part of the battle to reduce the Federal deficit, the Bipartisan Budget Agreement provided that neither the President nor the Congress would initiate supplemental appropriations except in case of a dire emergency. A unilateral declaration of a "dire emergency" is not consistent with the spirit of the Agreement, which emphasized Executive-Legislative consultation and cooperation. To the extent that any funding emergency can be said to exist, Congress has created it by its failure to act in a timely fashion on funding requests submitted by the Administration over four months ago.

The Administration supports replacement of prison facilities destroyed during the Mariel Cubans' prison riots and has proposed appropriate transfers from existing Department of Justice resources to fund it. The Administration cannot support funding these items with new budget authority — that is, without offsetting transfers — as H.R. 5026 provides. The bill also provides $50 million for State Employment Services, which is not an emergency need, and provides no offset for this funding.

The Administration opposes the addition of $24 million in FY 1988 to the U.S. Emergency Refugee Migration and Assistance Fund including the earmark of $6 million for Soviet and Eastern European refugee admission. While the humanitarian intent of the add-on is understandable, the effect of this action, together with current FY 1989 appropriation action, will be to increase outlays in FY 1989 above the ceiling set for the international affairs function in the Bipartisan Budget Agreement (BBA). In addition, funding for these ongoing assistance and resettlement programs is more appropriately provided through the migration and refugee assistance account which is specifically authorized to carry out such activities.

The Administration urges the Congress to identify appropriate offsets to ensure compliance with the Bipartisan Budget Agreement and essential supplemental funding for programs such as the coast Guard's drug enforcement activities.

Unless the bill provides appropriate offsets, the Director of the Office of Management and Budget could not recommend that the President approve the bill.

H.R. 5026 - EMERGENCY SUPPLEMENTAL, FY 1988
OBJECTIONABLE PROVISIONS

—    Department of Labor, Employment Service. The additional $50 million for State Employment Services is neither a dire emergency nor an emergency need. States have been planning all year to operate at the $723 million level provided in the FY 1988 appropriation. The $50 million increase, which more than restores the reduction the Congress took in December to reach the FY 1988 Bipartisan Budget Agreement level, is provided without offsets. The House is urged to delete this provision as it is not programmatically necessary and not an emergency.

—    Department of Justice, Community Relations Service, Support of Prisoners, Federal Prison System, and Buildings and Facilities. The President requested funding for these programs through deficit-neutral transfers. The bill provides new budget authority without any offsets, thus violating the Bipartisan Budget Agreement. The Committee is urged to adopt the Administration's proposed offsets.

—    Coast Guard, Operating Expenses. The use of $10 million of Panama Canal Commission unobligated balances to offset the Coast Guard supplemental is objectionable. These balances are no longer available for transfer because they have been used to cover the obligation of accrued leave liability, an obligational requirement inadvertently omitted from the 1989 Budget. Furthermore, the concept of using Canal revenues for non-Canal purposes sets a very bad precedent for the Republic of Panama when it assumes the Canal in the year 2000. The Committee is urged to adopt the Administration's proposed offsets in lieu of this transfer.

—    Department of Agriculture, Agricultural Stabilization and Conservation Service (ASCS). The bill provides an additional $45 million to fund work load requirements resulting from the drought, without providing for an offset. The committee is urged to identify an offset from discretionary appropriations.

—    Department of Agriculture, Soil Conservation Service (SCS). The Administration strongly opposes language authorizing a transfer of $10 million from the Farmers Home Administration to the SCS Emergency Watershed Protection account because it attempts to provide preferential rights for emergency flood assistance to certain States. The Committee is urged to delete this provision.

—    U.S. Emergency Refugee Migration and Assistance Fund. The Administration opposes the addition of $24 million in FY 1988 to the U.S. Emergency Refugee Migration and Assistance Fund including the earmark of $6 million for Soviet and Eastern European refugee admission. While the humanitarian intent of the add-on is understandable, the effect of this action, together with current FY 1989 appropriation action, will be to increase outlays in FY 1989 above the ceiling set for the international affairs function in the Bipartisan Budget Agreement (BBA). In addition, funding for these ongoing assistance and resettlement programs is more appropriately provided through the migration and refugee assistance account which is specifically authorized to carry out such activities.