Statement of Administration Policy: H.R. 5678 - Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Bill, FY 1993

(House Floor)
(Sponsors: Whitten (D), Mississippi; Smith (D), Iowa)

This Statement of Administration Policy expresses the Administration's views on H.R. 5678, the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Bill, as reported by the House Committee.

Legal Services Corporation

The Administration strongly opposes language in Title IV requiring that none of the funds appropriated for the Legal Services Corporation (LSC) be spent in a manner contrary to the provisions of H.R. 2039, the House-passed LSC reauthorization bill. The President's senior advisers have recommended that the President veto H.R. 2039 for a number of reasons, including concerns about: the unconstitutionality of the Corporation's structure; inadequate restrictions on abortion-related and redistricting-related activities; inadequate controls on lobbying; the lack of competitive bidding for grants; and undue restrictions on the Corporation's ability to monitor the use of funds by grantees.

If, at the time this appropriations bill were presented to the President, the provisions of H.R. 2039 as passed by the House were to govern the operation of the LSC, the President's senior advisers would recommend that he veto this appropriations bill.

Budget Priorities

The Administration strongly opposes the bill's distribution of domestic discretionary funds. The Administration believes that it is unreasonable to fund programs whose missions have been completed, or whose objectives are no longer critical. Continued funding for these programs is at the expense of higher national priorities, such as the war against crime and drugs and programs that would spur national competitiveness.

Based on preliminary OMB scoring, the Committee's recommended overall $8.9 billion funding level for the Department of Justice is more than $1.0 billion below the President's request and $0.4 billion below the FY 1992 enacted level. This level of funding would seriously undermine the Administration's ability to combat crime and drug abuse. Key effects of the Committee's proposed reductions include:

• Contraction of efforts to combat violent crime. In particular, the requests for the FBI and the U.S. Attorneys are reduced. As a result, the Government would be unable to apprehend and prosecute criminals who threaten our citizens.
  
  
• Impairment of drug law enforcement efforts, reducing a decade-long trend of upgrading the war on drug abuse. Because the requests for the Drug Enforcement Administration and the Organized Crime Drug Enforcement Task Forces are reduced, drug seizures and apprehension of drug dealers would decline, leading to a probable increase in drug use.
  
  
• Inability to apprehend, detain, and deport criminal aliens on a timely basis. As a result of the reduced funding for the Immigration and Naturalization Service, the growing problem of illegal and criminal aliens would not be addressed adequately.

The Administration also objects to the Committee's proposed reductions in critical Department of Commerce programs. Most objectionable are the reductions in trade promotion and export enhancement activities, and those that would undermine improvements in the nation's statistics, especially the planning for the next census. Weather forecasting modernization and technology transfer programs would also be affected adversely, as would NTIA's ability to manage the Federal radio spectrum and to foster needed infrastructure changes.

The bill contains unwarranted increases for other programs. Among the funding that the Administration believes could be reduced or eliminated are the following: $248 million for the Economic Development Administration; $21 million for Public Telecommunications facilities grants; $58 million for narrow categorical National Oceanic and Atmospheric Administration projects; and $80 million for Small Business Administration programs.

The Committee has not included a legislative provision requested by the Administration that would permit the charging of fees to sentenced offenders in Federal prisons to cover the costs of the first year of incarceration. The Administration believes that the Committee should include the FY 1993 fee proposal that would require those offenders who have the means to contribute to the cost of their care in prison. This proposal would yield about $50 million in receipts. The Committee has assumed that authorizing committees of Congress will enact legislation to provide fee revenues to cover substantial portions of base funding for certain programs. Primary examples include the Securities and Exchange Commission (SEC), for which $92 million in fee collections is assumed, and the Federal Communications Commission (FCC), for which $71 million in fee collections is assumed. Both the FCC and the SEC would be severely under-funded if the fee legislation were not enacted by Congress.

The Administration understands that an amendment may be offered that would reduce the funding levels for salaries and expenses appropriations for the Departments of Commerce, Justice, and State. The Administration would oppose such an amendment.

The Administration understands that an amendment may be offered by Representative Cunningham that would provide loan guarantees to build and repair vessels that are militarily useful. The Administration supports the Title XI amendment and would, on a preliminary basis, score the amendment as defense discretionary.

International

The Administration commends the Committee for continuing to fund fully the United States contribution to the United Nations, including peacekeeping activities and other international organizations. The Administration understands that an amendment to delete $12 million in U.S. Information Agency funding for TV Marti broadcasting to Cuba may be offered. The Administration believes TV Marti is a valuable investment in promoting freedom and democracy in Cuba and would oppose such an amendment.

The Administration strongly opposes an amendment cleared by the Rules Committee that would restrict the construction, repair, or alteration of vessels for the National Oceanic and Atmospheric Administration solely to shipyards located in the United States. Such a restriction would likely be inconsistent with U.S. international trade obligations.

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

Attachment

Attachment
(House Floor)

ADDITIONAL CONCERNS
H.R. 5678 -- DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1993

MAJOR PROVISIONS OPPOSED BY THE ADMINISTRATION

A. Funding Levels

Department of Justice:

Anti-Drug-Abuse Related Resources. The Administration is particularly concerned with the effect of the funding provided by the Committee on drug control programs. Drug-related funding recommended by the Committee is over $400 million below the request level. The Committee's reduction is about 10 percent of total drug funding requested for the Department of Justice in FY 1993. This lower level of resources would severely disrupt vital investigations, resulting in more cocaine on America's streets.

Legal Resources (U.S. Attorneys, Antitrust Division, And General Legal Activities). The Committee has not provided $127 million requested for tax collection, collection of the Government's debt, representation of the Government as a creditor in the growing number of bankruptcies, and expanded litigation against defense procurement fraud. The Committee has failed to fund any of the Administration's initiatives in civil rights litigation, such as employment discrimination litigation under the Americans with Disabilities Act, prosecution of civil rights crimes, and fair housing testing.

The Committee's funding level for the U.S. trustees is $13 million below the request. With this reduction, case backlogs would continue to grow. Not funding this request would leave the door open to fraud and abuse of the bankruptcy system.

Detention and Prisons (Salaries and Expenses, Buildings and Facilities. National Institute of Corrections (NIC), Federal Prison Industries. Support of Prisoners). The Committee has reduced the request for prison operations by $192 million. These reductions would exacerbate the problem of prison overcrowding. New prisons ready to open would stand empty. In addition, despite a prison overcrowding rate of 45 percent, the request for new prison construction has been reduced by $246 million. As a result, no new prisons would be constructed.

Justice Inspector General. The Committee provides $29 million, a reduction of $2.5 million, or eight percent, from the President's request for the Office of the Inspector General (OIG). This reduction would seriously affect the ability of the OIG to conduct legislatively mandated audits of financial statements as well as audits and investigations of high risk areas and other priority issues. Audits of high risk areas such as those listed in the President's budget for U.S. Marshals and INS' financial management and accounting systems and security of Departmental ADP systems and sites could be curtailed, and essential oversight over high risk areas may be reduced significantly.

General Administration. The Committee provides $113.6 million, a reduction of $19.2 million, or 14.5 percent, from the President's request for General Administration. This reduction could seriously affect the ability of the Chief Financial Officer to conduct legislatively mandated responsibilities for financial management at the Department. Work on high risk areas such as those listed in the President's budget for the Department of Justice, including work on financial litigation and debt collection, could be curtailed, and essential oversight of these high risk areas may be reduced significantly.

Department of Commerce:

NOAA Satellites and Weather Service. NOAA would be unable to continue production of the GOES satellites as a result of the Committee's $16 million reduction. This reduction could delay the launch of GOES-1 for six months or more. The Committee has provided only 90 percent of the request for weather service operations. Full funding is needed to avoid permanent reductions to current weather services to the public. Reduced funding levels for systems now in procurement (e.g., NEXRAD and ASOS) could complicate contractual agreements and would add costs in the out-years.

In addition, the contractual schedule for delivery of NEXRAD radars is contingent upon facilities availability. The Committee's $10.7 million reduction to the Facilities construction account would seriously compromise NEXRAD deployment. The Committee has recommended these reductions in high priority areas while providing funding for projects throughout NOAA that the Administration considers to be of lower priority or has proposed for termination.

National Telecommunications and Information Administration (NTIA). The allocation for the National Telecommunications and Information Administration Salaries and expenses account is inadequate. If NTIA had to operate with funding below the FY 1992 enacted level, it would be unable to improve its management of the Federal radio spectrum or to ensure the transfer of Federal radio spectrum to the private sector.

Statistics: Census and the Economic Statistics Administration. The Committee has provided $337 million for statistical activities, $49 million less than the request. The Committee has denied all increases and cut the base for the Economic Statistics Administration, the agency most critical in developing measures of the state of the economy. These reductions would undermine efforts to update and improve the nation's most vital measures of economic performance. They would also prevent the Bureau of Economic Analysis from moving from its current quarters, which fails to meet building and environmental codes, when its lease expires in FY 1993.

The Committee has also reduced the request for the Census Bureau, which would deprive the Bureau of funds needed for the Economic Censuses and Census 2000 planning, thereby jeopardizing these key governmental functions.

U.S. Competitiveness (NIST and the Technology Administration). In an increasingly competitive international marketplace, U.S. industry must rapidly absorb new technology and translate it into new marketable products. NIST has a long-standing and highly successful record of working effectively with industry in developing measurement standards and test methods, as well as advanced research and development, all of which are rapidly transferred to industry.

These activities make an important contribution to the competitiveness of U.S. industry. The Committee has provided $62 million less than the request for NIST and the Technology Administration at a time when our nation's firms are being challenged at home and abroad on a daily basis.

Commerce Inspector General. The Committee provides $15.5 million, a reduction of $2.7 million, or 14.7, percent from the President's request for the Office of Inspector General (OIG). This reduction would seriously affect the ability of the OIG to conduct legislatively mandated audits of financial statements as well as audits and investigations of high risk areas. Audit of high risk areas such as those cited in the President's budget for the National Weather Service and the Department's consolidated accounting systems could be curtailed, and essential oversight over high risk areas may be reduced significantly.

General Administration. The Committee provides $31.7 million, a reduction of almost $4.3 million, or 12 percent, from the President's request for the Salaries and Expense appropriation for General Administration. This reduction could seriously affect the ability of the Chief Financial Officer to conduct legislatively mandated responsibilities for financial management at the Department. Work on high risk areas such as those listed in the President's budget for the Department of Commerce, including development of an adequate departmental financial management system, could be curtailed and essential oversight of these high risk areas may be reduced significantly.

Commerce Department International Activities:

International Trade Administration (ITA). Exports have provided a major source of economic growth for the U.S. economy over the last five years. ITA provides much needed regional and sectoral expertise to support international trade negotiations and to enforce trade laws and agreements. The Committee has reduced ITA's budget by $8 million and further reduced ITA's available resources by earmarking funds for several trade promotion programs that are not a high priority for ITA.

Export Administration. The Committee has reduced the request for the Bureau of Export Administration (BXA) by $3.7 million, or over 8.5 percent. BXA would be required to promulgate a reduction-in-force at this funding level.

Commission on Civil Rights:

Salaries and Expenses. The Committee has reduced funding by $2.2 million, or 21.5 percent, below the President's request. This decrease would reduce the scope and delay the timing of Commission hearings and related reports (including Los Angeles and Miami hearings on racial tension), and decrease the Commission's ability to monitor Federal Civil Rights enforcement efforts.

Equal Employment Opportunity Commission (EEOC):

Salaries and Expenses. The Administration urges the House to restore funding for the EEOC to the requested level of $242.8 million. The $24.2 million reduction proposed by the Committee is almost 10 percent below the level requested by the Administration. The resulting level of $218.7 million is only four percent above the FY 1992 appropriated level. This level of funding would be barely sufficient to meet even the uncontrollable cost increases for Federal pay raises and related benefit costs.

The Administration's request recognizes that enforcement of the recently enacted Americans with Disabilities Act and the Civil Rights Act will require additional staff and funding for the EEOC. The Committee mark would not allow the EEOC to maintain even current staffing levels and, at a minimum, would result in hiring freezes in FY 1993. Further, the time it takes to resolve complaints would increase substantially.

Small Business Administration (SBA):

SBA Inspector General. The Committee provides $10.6 million, a reduction of $2.8 million, or 21.1 percent, from the President's request for the Office of Inspector General (OIG). This reduction would seriously affect the ability of the OIG to conduct legislatively mandated audits of financial statements as well as audits and investigations of high risk areas and other priority issues. The President's budget identifies several high risk areas such as the Small Business Development Program, and Small Business Investment Corporations (SBICs). Audits of these high risk areas could be curtailed and essential oversight over high risk areas may be reduced significantly.

United States Information Agency: Salaries and Expenses. The Administration understands an amendment may be offered that would eliminate $15.2 million to fund USIA's libraries and reading rooms in the OECD countries. The Administration would oppose such an amendment. USIA has greatly reduced the number of such facilities over the past years.

B. Objectionable Language Provisions

Department of Justice:

INS. The Committee bill includes language that would deny funds for payment of 1931 Act overtime for INS inspectors. At a time when both Congress and the Administration recognize the necessity of facilitating traffic across land borders, seaports, and airports as a means of facilitating trade and tourism, the Committee is eliminating a means of providing an acceptable level of service.

This provision would also exacerbate a retention and recruitment problem that INS currently faces with its inspection work force. The basic benefit and salary package offered by local, State, and other Federal law enforcement agencies exceeds that offered to INS inspectors.

Inspectors from the U.S. Customs Service and INS staff share the same ports of entry and, at land border ports, are "cross designated" to perform the inspection functions for the other agency. Failure to maintain compensation parity for the inspection work force of each agency would have catastrophic impact on recruitment and retention of staff for the disadvantaged agency. In this case, it is likely that INS would lose its inspector work force to the U.S. Customs Service.

Department of Transportation:

Maritime Administration Operations and Training. The Administration objects to a provision of the Committee bill that would expand the use of proceeds derived from the sale or disposal of National Defense Reserve Fleet (NDRF) vessels collected and retained by the Maritime Administration. The provision would allow the use of proceeds for purposes other than the maintenance and acquisition of vessels into the NDRF and the Ready Reserve Force.

Commission on Civil Rights:

Salaries and Expenses. The Administration objects to the restrictions in the Committee bill on the use of funds for: regional offices and civil rights monitoring activities; consultants and Schedule C, exempted service employees; and the number of billable days allowed for each Commissioner.

Small Business Administration (SBA):

Small Business Development Centers. The Committee bill would prohibit the SBA from adopting, implementing, or enforcing any regulation for the Small Business Development Centers program or from changing any policy that was in effect on October 1, 1987. The Administration opposes this prohibition because new regulations are needed to prevent possible abuses of the program.

Federal Trade Commission (FTC):

FTC oversight of Federal Deposit Insurance Corporation (FDIC), FDIC Improvement Act (FDICIA) of 1991. The Administration supports the amendment added by the Committee that would prohibit FY 1993 appropriations from being used to implement section 151(a)(1) of the FDICIA of 1991. The Administration has transmitted legislation that would repeal section 151 and provide for a short study of the problems that section 151 attempts to address. Pending the outcome of that study or other legislative changes to section 151, the Administration believes it would be appropriate to delay implementation of section 151.