Statement of Administration Policy: S. 1507 - National Defense Authorization Act for Fiscal Years 1992 and 1993

(Senate)
(Nunn (D) Georgia)

The budget authority and outlay levels in S. 1507, as reported by the Senate Armed Services Committee, are consistent with the caps for defense in the Budget Enforcement Act of 1990. In general, the committee-reported bill is a significant improvement over the bill (H.R. 2100) passed by the House. S. 1507 would authorize substantial resources for many important programs, including the B-2 bomber, and would support key management initiatives, including deletion of post-employment limits on Federal officials.

Although the Administration would strongly prefer its full request for the Strategic Defense Initiative (SDI), it recognizes that the Committee's proposal would allow for deployment of a defensive system that would protect against limited attack. It would also provide for development of space-based components. The President's senior advisors would be concerned that, if funding reductions or restrictions were to be imposed on the committee's proposal, the final bill could be unacceptable to the President.

The Administration supports the establishment of a Commission to study the role of women in combat.

S. 1507 contains objectionable provisions that would severely compromise the Administration's defense objectives. The most troubling features would:

—   limit necessary reductions in Reserve and National Guard forces and cause imbalances in the total force structure;

—   prevent the Department of Defense from using involuntary separations when necessary to remain within FY 1992 Budget limits and to achieve personnel management objectives;

—   terminate the National Aerospace Plane, which is a key factor in maintaining U.S. world leadership in aerospace technology well into the next century;

—   fund unrequested programs, such as continued production and purchase of the F-117 in lieu of the F-16 and production of the M-l tank;

—   fund items, such as the Critical Technology Application Centers, the National Manufacturing Extension Program, manufacturing education programs, and grants for elementary and secondary education, that are not directly related to the mission of the Department of Defense;

—   impede necessary warhead production and seriously undermine the Secretary of Energy's responsibility for determining when and how to operate the Rocky Flats nuclear weapons plant. The provision would place unnecessary obstacles in the path leading toward plutonium operations resumption, which is essential to meeting the President's national security requirements for warhead productions; and

—   use the Defense Cooperation Account (DCA) to procure unrequested items, such as JSTARS aircraft, Patriot missiles, and the Heavy Equipment Transporter system.

The Administration strongly opposes Title VIII, especially Sections 801 and 802. These sections attempt to advance a broad range of technologies and manufacturing capabilities of potential interest to the private sector. Such efforts normally should be accomplished by the private sector, not through a centralized government planning process. For example, production of the National Critical Technologies Road Maps would require a complex planning process and would decrease the focus of the technology base program on the defense mission. Moreover, the legislative mandates for the Federal Coordinating Council for Science, Engineering, and Technology and for the creation of the critical technologies advisory committees are unduly burdensome and limit the President's authority to delegate within the Executive branch.

The Administration opposes attempts to change the scoring provisions for lease and lease purchase authorities agreed to in the Omnibus Budget Reconciliation Act of 1990 (OBRA).

The Administration urges the Senate to address these concerns, thereby ensuring a strong and affordable defense for America's future. As the review of S. 1507 continues, the Administration may propose additional modifications to the bill.

Scoring for the Purpose of PAYGO and Discretionary Caps

S. 1507 would increase direct spending; therefore, it is subject to the pay-as-you-go requirement of OBRA. No offsets to the direct spending increases are provided in the bill. A budget point of order applies in the House and Senate against any bill that is not fully offset under CBO scoring. If, contrary to the Administration's recommendation, the Senate waives any such point of order that applies against S. 1507, the effects of enactment of this legislation would be included in the look back pay-as- you-go sequester report at the end of the congressional session.

OMB's preliminary scoring estimates of this bill are shown below. OMB's scoring concurs with CBO's scoring of section 624, which would allow certain retired military officers who are employed in the Legislative branch of the Federal government to receive all of their retired pay. Under current law, such retired officers must forgo roughly one-third of their pay. Final scoring of this legislation may deviate from these estimates. If S. 1507 were enacted, final OMB scoring estimates would be published within five days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending will be issued in monthly reports transmitted to Congress.

Estimates For Pay-As-You-Go
(in millions)