Statement of Administration Policy: H.R. 5620 - Supplemental Appropriations, Transfers, and Rescissions Bill, FY 1992

(House Floor)
(Sponsor: Whitten (D), Mississippi)

The purpose of this Statement of Administration Policy is to express the Administration's views on the Supplemental Appropriations, Transfers, and Rescissions Bill for FY 1992.

The President's senior advisers would recommend that the President veto the bill if it were to contain language approved by the Committee that would permanently prohibit the Department of Labor (DOL) from enforcing its "helper" regulations. Federal courts have repeatedly upheld DOL's promulgation of these rules, most recently in April 1992. Preventing enforcement of these regulations would increase Federal construction costs by over $500 million per year.

The Administration has requested $429 million for the Department of Defense (DOD) to cover higher-than-anticipated personnel costs related to Operation Desert Shield/Desert Storm. The Committee has provided $5.2 billion. The Administration continues to believe that $429 million is the appropriate amount and objects to the additional funding. Each dollar added above the amount needed for FY 1992 would result in an increase in the deficit.

The bill would terminate the Persian Gulf Regional Defense Fund. The $15 billion provided for the Fund was not scored by the Office of Management and Budget because specific appropriations action is required before any of the funds may be obligated. Therefore, terminating the Fund would have no scoring consequences.

The Administration opposes the permanent transfer of five UH-60 Black Hawk helicopters to the Drug Enforcement Administration (DEA) from DOD. The provision to transfer these helicopters is unnecessary. The Administration determined in early July that up to five UH-60 Black Hawk helicopters would be loaned by DOD to DEA for approved drug-related programs. Legislation is not required to provide for this support. Moreover, no surplus Black Hawk UH-60 helicopters exist within DOD that could be transferred on a permanent basis.

The Administration opposes the provision that would require DOD to obligate and expend $730.5 million of the $879 million appropriated for environmental restoration and compliance by September 30, 1992. With only two months left in FY 1992, this expenditure requirement would not be feasible.

The Administration objects to the unrequested $50 million included in the bill for DOD educational assistance. There is no national security requirement for these funds.

The Administration opposes language in the bill that would designate $30 million in drought assistance funding as an emergency requirement. The Administration would support some additional funding to address drought conditions in the western States if provided within the discretionary spending limits.

The bill does not include the Administration's request to transfer $10 million from the Flexible Subsidy Program and the Rental Housing Assistance Fund into the General Insurance (GI) Fund. This transfer was recommended to fund the added credit subsidy budget authority needed to increase single-family and multi-family mortgage insurance by $1.5 billion. Without this transfer, the Department of Housing and Urban Development projects that the mortgage insurance programs paid for by the GI Fund would cease underwriting new borrowing before the end of FY 1992. The requested transfer would not increase outlays.

The bill would lower from $8.74 billion to $8.7 billion the earmarking for personnel services for veterans' medical care contained in the regular FY 1992 appropriation. The Administration believes that this earmarking should be deleted. Such earmarks infringe upon the Department of Veterans Affairs' management of the veterans' health care system and preclude the Department from utilizing medical funds in the most effective and efficient manner.

On the basis of OMB's preliminary scoring, the funding provided by the bill is within the statutory spending limits mandated by the Budget Enforcement Act.