Statement of Administration Policy: H.R. 5518 - Transportation and Related Agencies Appropriations Bill, FY 1993

(House Floor)
(Sponsors: Whitten (D), Mississippi; Lehman (D), Florida)

This Statement of Administration Policy provides the Administration's views on H.R. 5518, the Department of Transportation and Related Agencies Appropriations Bill, FY 1993, as reported by the Appropriations Committee.

The Administration strongly objects to the reduction in proposed funding for Federal-aid highways. The total funding level of $16.9 billion is $2.3 billion below the President's request. This level would severely limit the ability to maintain the condition of the nation's highway infrastructure, which is one of the most important links in the transportation system. Furthermore, a disproportionate share — almost 16 percent — of the Federal-aid contract authority is for "exempt" programs. This funding mechanism provides an unfair advantage to certain States that are the beneficiaries of these "exempt" programs.

The Administration strongly opposes an effort to fund additional highway and other transportation spending by violating the firewalls established in the Budget Enforcement Act of 1990 (BEA). Such an amendment would increase the deficit in FY 1993 by $0.4 billion and in FY 1994 by $1.2 billion above the deficits that would have otherwise resulted from House action on appropriations bills to date.

If Congress were to abandon the mutually agreed-upon discipline of the BEA, it could trouble financial markets, cause interest rates to rise, and thus prove counterproductive. That is, it could slow recovery and threaten job creation. If the President were presented a bill that includes a provision that violates the firewalls and thus increases the deficit, his senior advisers would recommend a veto.

The amendment to increase Federal transportation spending above the level contained in the Committee bill should not be financed by increasing the deficit. Increases should be financed by reductions in unnecessary spending, such as that noted below.

The Administration supports the Michel amendment, which would direct that all savings available under the caps be applied to reducing the Federal deficit.

The Administration strongly objects to the Temporary Match Waiver amendment that is made in order in the rule. The amendment would delay needed investment for transportation improvements and reduce jobs during the next several years by waiving the State and local match and delaying the required repayment. In the case of discretionary transit grants, since the Secretary does not have discretion in approving waivers, the amendment fails to provide a mechanism to ensure that a local match is eventually paid.

If the House passes both the Obey and the Nagle amendments, any increase in jobs that would result from the increased Federal spending will be reduced by the reduction in State and local matching funds. The House will have simply shifted the burden from State and local governments to the Federal Treasury.

The Administration objects to the bill's providing $1 billion more than the Administration's request for highway demonstration projects, narrow categorical highway projects, mass transit new starts and subsidies, and Amtrak subsidies. The Administration believes that these increases should be redirected to programs designed to maintain the nation's highway infrastructure, to ensure proper financial controls, and to continue important research on magnetic levitation systems.

Funding provided by the Committee bill for highway demonstration projects ($167 million) and other narrow categorical highway projects would erode the ability of state planners to make sound transportation decisions, distort the formula allocation of funds, and reduce equity among the States. Funding for these projects would undercut core programs where States can apply the funds flexibly to their highest transportation priorities.

The Administration objects to the Committee's funding of $640 million for mass transit new starts and the earmarking of the entire amount. These earmarks are made without regard to established cost-effectiveness criteria. In many cases, they are made before the project's total cost is known. For example, the bill would provide $18 million for a Seattle-Tacoma Commuter Rail project. An alternatives analysis has not been initiated, and the project appears to compete with high-occupancy-vehicle lanes and a rail system proposed for the same corridor.

The Administration urges the restoration of funds to implement the Chief Financial Officers Act (CFO). The Committee bill would eliminate virtually all funding for CFO Act programs, including $5.1 million for the Inspector General and $1.2 million for the Office of the Secretary. These funds are needed to provide for program oversight and effective financial controls. Without such funding, the integrity of these programs could be jeopardized.

The Committee bill does not provide $12.9 million requested for magnetic levitation systems research. These funds are required to continue studies of economic, technical, and safety issues.

The Administration objects to and requests removal of a legislative provision that would reduce mandatory drug and alcohol testing for airline employees. The Secretary of Transportation has committed to conduct a thorough review to determine the appropriate testing rate that balances the burden on industry with ensuring effective detection and deterrence. The Administration believes that it would be premature to restrict testing rates statutorily in the absence of the Secretary's review of this complex issue.

Additional Administration concerns with the bill as reported by the Committee are contained in the attachment.

Attachment

Attachment
(House Floor)

ADDITIONAL CONCERNS
H.R. 5518 — TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1993

MAJOR PROVISIONS OPPOSED BY THE ADMINISTRATION

A. Funding Levels

Department of Transportation:

Federal Aviation Administration (FAA). The Committee has reduced FAA's major air traffic modernization projects. The Administration's request for the Advanced Automation System (AAS) has been reduced by $122 million, and the Voice Switching and Control System (VSCS) has been reduced by $37 million. Unless $80 million for AAS and $9 million in VSCS is restored, these projects would experience delays in implementation as well as additional long-term costs. In addition, the Committee bill would provide $108 million in unrequested additions, including $24 million earmarked for university facilities.

Coast Guard. The Committee allocation would fund the Coast Guard at approximately three percent less than the President's request. This reduction would affect virtually all Coast Guard operations and would require funding to be reduced to approximately FY 1992 levels, despite increased cost-of-living and pay raise requirements.

National Recreational Trails Program. The Committee has not provided funding for the National Recreational Trails Program. The President has requested $15 million for this program to make grants to States to establish and maintain new, multiple-use recreational trails. The House is urged to provide the President's request for this program.

Rental Payments to the General Services Administration (GSA). The Committee has reduced rental payments to GSA by $35 million. This reduction would prevent the Department of Transportation from reimbursing GSA for space currently occupied. If the Committee's reduction were adopted, GSA would have to make up for the reduced reimbursement from balances in the Federal Buildings Fund. Because spending associated with the reduction would still occur, OMB will score these outlays against the domestic discretionary spending provided by the Transportation appropriations bill.

Other:

Architectural and Transportation Barriers Compliance Board. The Committee bill would provide $300,000 less than the President's request. It would not allow for any increase in the contract research program or the technical assistance program. Providing funds for these programs at the requested level is critical to support the Board's efforts to gather the data required to develop the accessibility guidelines required by the Americans with Disabilities Act, and to meet the Board's other statutory responsibilities under the Act.

B. Language Provisions

General Provisions: Federal Aviation Administration:

The Committee bill would impose objectionable limitations and requirements on Department of Transportation activities. The Administration believes that prohibiting the use of funds for the planning or implementation of any change to three flight service stations is inappropriate. The Department and FAA should have the flexibility to manage and operate FAA facilities as needed to best serve the air space system.

The Committee bill would also prohibit the collection of passengers facility charges (PFCs) on tickets acquired with frequent flyer or similar bonus programs. The Department of Transportation should retain the discretion to determine on policy grounds whether or not PFCs should pertain to frequent flyer passengers.

The bill would allow the FAA Administrator to bypass merit procedures by appointing students who have completed instruction at specific air traffic controller (ATC) institutions. This would circumvent Office of Personnel Management merit staffing procedures and allow the Administrator to give preferential employment to a specified group.