November 6, 1998
The Speaker of the
House of Representatives
Sir:
In accordance with provisions of Public Law 105-277, the Omnibus Consolidated and
Emergency Supplemental Appropriations Act, 1999, I hereby request the following transfers
from the Information Technology Systems and Related Expenses account:
Department of Education
- Departmental Administration, Program Administration: $1,561,000
Department of Energy
- Atomic Energy Defense Activities, Defense Environmental Restoration and Waste
Management: $10,340,000
- Atomic Energy Defense Activities, Defense Facilities Closure Projects: $3,500,000
- Departmental Administration, Departmental Administration: $10,000,000
Department of Health and Human Services
- Departmental Management, Public Health and Social Services Emergency Fund:
$189,053,000
Department of the Interior
- Departmental Management, Working Capital Fund: $32,900,000
Department of Justice
- General Administration, Salaries and Expenses: $120,000
- General Administration, Office of Inspector General: $2,835,000
- United States Parole Commission, Salaries and Expenses: $20,000
- Legal Activities and U.S. Marshals, Salaries and Expenses, General Legal Activities:
$6,389,000
- Legal Activities and U.S. Marshals, Salaries and Expenses, Antitrust Division: $8,000
- Legal Activities and U.S. Marshals, Salaries and Expenses, United States Attorneys:
$427,000
- Legal Activities and U.S. Marshals, Salaries and Expenses, United States Marshals
Service: $700,000
- Legal Activities and U.S. Marshals, United States Trustee System Fund: $1,003,000
- Federal Bureau of Investigation, Salaries and Expenses: $10,293,000
- Drug Enforcement Administration, Salaries and Expenses: $1,967,000
- Immigration and Naturalization Service, Salaries and Expenses: $9,268,000
- Federal Prison System, Salaries and Expenses: $200,000
Department of Labor
- Employment and Training Administration, Training and Employment Services:
$791,000
- Employment and Training Administration, Program Administration: $1,572,000
- Mine Safety and Health Administration, Salaries and Expenses: $1,800,000
- Departmental Management, Departmental Management: $3,087,000
Department of State
- Administration of Foreign Affairs, Capital Investment Fund: $47,890,000
Department of the Treasury
- Departmental Offices, Salaries and Expenses: $1,238,000
- Departmental Offices, Automation Enhancement: $2,762,000
- Financial Management Service, Salaries and Expenses: $6,000,000
- Bureau of Alcohol, Tobacco and Firearms, Salaries and Expenses: $5,000,000
- United States Customs Service, Salaries and Expenses: $10,200,000
- Bureau of the Public Debt, Administering the Public Debt: $1,000,000
- Internal Revenue Service, Information Systems: $483,000,000
- United States Secret Service, Salaries and Expenses: $3,000,000
Other Defense -- Civil Programs
- Selective Service System, Salaries and Expenses: $250,000
Executive Office of the President
- Office of Administration, Salaries and Expenses: $12,200,000
- Office of the United States Trade Representative, Salaries and Expenses: $498,000
General Services Administration
- General Activities, Policy and Operations: $4,800,000
Corporation for National and Community Service
- Domestic Volunteer Service Programs, Operating Expenses: $800,000
Federal Communications Commission
- Salaries and Expenses: $8,516,000
Federal Trade Commission
- Salaries and Expenses: $550,000
Securities and Exchange Commission
- Salaries and Expenses: $7,400,000
United States Holocaust Memorial Council
- Holocaust Memorial Council: $680,000
United States Information Agency
- Technology Fund: $7,062,000
This funding will support efforts to make Federal information technology systems Year
2000 compliant and outreach to non-Federal entities in support of the Year 2000 Conversion
Council.
I hereby designate all of the above requests as emergency requirements pursuant to section
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
The details of these actions are set forth in the enclosed letter from the Director of the Office
of Management and Budget. I concur with his comments and observations.
Enclosure
Estimate No. 22
105th Congress, 2nd Session
November 6, 1998
The President
The White House
Submitted for your consideration are requests to transfer $891 million from the contingent
emergency fund for Year 2000 (Y2K) compliance to 18 Federal agencies.
These transfers will support a range of activities to ensure that important computer systems
will operate smoothly through the year 2000 and beyond. Emergency funding would be
allocated both for activities that were included in your FY 1999 Budget but were not funded in
the FY 1999 appropriations process (based on the assumption that funds would be allocated from
this fund), and for critical Y2K requirements that have been identified since the FY 1999 Budget
was transmitted. Federal agencies would use this funding for additional remediation for
information technology systems, testing to ensure that systems are Y2K compliant, replacement
of embedded computer chips, creation and verification of continuity of operations and
contingency plans, and outreach to non-Federal entities by agencies in support of the Year 2000
Conversion Council.
Your FY 1999 Budget anticipated that Y2K requirements would emerge over the course of
the year and included an allowance to provide flexible funding to address emerging needs. As
you requested, P.L. 105-277, the FY 1999 Omnibus Consolidated and Emergency Supplemental
Appropriations Act, provided contingent emergency funding for Y2K computer conversion
activities -- $1.1 billion for defense-related activities and $2.25 billion for non-defense activities.
The enclosed requests for transfers are for non-defense agencies; therefore, the funds would be
transferred from the Information Technology Systems and Related Expenses account established
by P.L. 105-277.
OMB continues its oversight of Federal agency progress toward fixing the Y2K problem.
We are working to ensure that Federal agencies have sufficient FY 1999 resources to address
Y2K and that flexible contingent emergency funding remains available to address emerging
needs. Pursuant to the requirements of Public Law 105-277, OMB will prepare and submit
reports to Congress on the proposed allocation and plan for each affected agency to achieve year
2000 compliance for technology information systems before funds can be released to the agency.
The report for agencies represented in this first release of Y2K contingent emergency funds will
be transmitted to the congressional committees specified in P.L. 105-277 concurrent with this
request for release of the funds. In addition, each agency will provide detailed justification
material to these committees and the relevant appropriations subcommittees.
I recommend that you designate the amounts listed on the enclosure as emergency
requirements in accordance with section 251(b)(2)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended. No further congressional action will be required.
I have carefully reviewed these proposals and am satisfied that they are necessary at this
time. Therefore, I join the heads of the affected Departments and agencies in recommending that
you make the requested funds available by signing the enclosed letter to the Speaker of the
House of Representatives.
OMB will continue to monitor agency requirements and will address additional
funding needs as they emerge.
Enclosure
EMERGENCY APPROPRIATIONS: AMOUNTS PREVIOUSLY APPROPRIATED
MADE AVAILABLE BY THE PRESIDENT
YEAR 2000 (Y2K) CONVERSION
Department of Education
Departmental Administration, Program Administration............................. $1,561,000
Department of Energy
Atomic Energy Defense Activities:
Defense Environmental Restoration and Waste Management.................... $10,340,000
Defense Facilities Closure Projects......................................................... $3,500,000
Departmental Administration, Departmental Administration ..................... $10,000,000
Department of Health and Human Services
Departmental Management:
Public Health and Social Services Emergency Fund................................. $189,053,000
Department of the Interior
Departmental Management, Working Capital Fund..................................... $32,900,000
Department of Justice
General Administration:
Salaries and Expenses........................................................................... $120,000
Office of Inspector General.................................................................. $2,835,000
United States Parole Commission, Salaries and Expenses..................... $20,000
Legal Activities and U.S. Marshals:
Salaries and Expenses, General Legal Activities..................................... $6,389,000
Salaries and Expenses, Antitrust Division............................................... $8,000
Salaries and Expenses, United States Attorneys..................................... $427,000
Salaries and Expenses, United States Marshals Service.......................... $700,000
United States Trustee System Fund....................................................... $1,003,000
Federal Bureau of Investigation, Salaries and Expenses.............................. $10,293,000
Drug Enforcement Administration, Salaries and Expenses.......................... $1,967,000
Immigration and Naturalization Service, Salaries and Expenses................... $9,268,000
Federal Prison System, Salaries and Expenses........................................... $200,000
Department of Labor
Employment and Training Administration:
Training and Employment Services......................................................... $791,000
Program Administration........................................................................... $1,572,000
Mine Safety and Health Administration, Salaries and Expenses................... $1,800,000
Departmental Management, Departmental Management.............................. $3,087,000
Department of State
Administration of Foreign Affairs, Capital Investment Fund........................ $47,890,000
Department of the Treasury
Departmental Offices:
Salaries and Expenses............................................................................ $1,238,000
Departmental Offices, Automation Enhancement..................................... $2,762,000
Financial Management Service, Salaries and Expenses................................ $6,000,000
Bureau of Alcohol, Tobacco and Firearms, Salaries and Expenses............... $5,000,000
United States Customs Service, Salaries and Expenses................................ $10,200,000
Bureau of the Public Debt, Administering the Public Debt............................ $1,000,000
Internal Revenue Service, Information Systems........................................... $483,000,000
United States Secret Service, Salaries and Expenses.................................... $3,000,000
Other Defense -- Civil Programs
Selective Service System, Salaries and Expenses......................................... $250,000
Executive Office of the President
Office of Administration, Salaries and Expenses......................................... $12,200,000
Office of the United States Trade Representative:
Salaries and Expenses........................................................................... $498,000
General Services Administration
General Activities, Policy and Operations................................................ $4,800,000
Corporation for National and Community Service
Domestic Volunteer Service Programs, Operating Expenses.................... $800,000
Federal Communications Commission
Salaries and Expenses............................................................................ $8,516,000
Federal Trade Commission
Salaries and Expenses........................................................................... $550,000
Securities and Exchange Commission
Salaries and Expenses........................................................................... $7,400,000
United States Holocaust Memorial Council
Holocaust Memorial Council................................................................ $680,000
United States Information Agency
Technology Fund................................................................................... $7,062,000
The funds made available will enable these agencies to address the Y2K problem by
supporting additional remediation for information technology systems, testing to ensure that
systems are indeed Y2K compliant, replacement of embedded computer chips, creation and
verification of continuity of operations and contingency plans, and outreach to non-Federal
entities by agencies in support of the Year 2000 Conversion Council.
November 6, 1998
The Honorable Ted Stevens
Chairman
Committee on Appropriations
United States Senate
Washington, D.C. 20510
Dear Mr. Chairman:
In accordance with provisions of Public Law 105-277, the Omnibus Consolidated and
Emergency Supplemental Appropriations Act, 1999, I am transmitting a proposed allocation and
plan for the following agencies to achieve Year 2000 (Y2K) compliance for technology
information systems:
Department of Education
Department of Energy
Department of Health and Human Services
Department of the Interior
Department of Justice
Department of Labor
Department of State
Department of the Treasury
Other Defense -- Civil Programs, Selective Service System
Executive Office of the President -- Office of Administration
Executive Office of the President -- Office of the United States Trade Representative
General Services Administration
Corporation for National and Community Service
Federal Communications Commission
Federal Trade Commission
Securities and Exchange Commission
United States Holocaust Memorial Council
United States Information Agency
In monitoring Federal agency progress towards Y2K compliance, OMB directed agencies to
estimate the total FY 1999 resources necessary for Y2K compliance and related expenses. Now
that the FY 1999 appropriations process has been completed, OMB has worked with the agencies
to determine whether the resource requirements associated with Y2K can be accommodated
within appropriated levels, or whether contingent emergency funds should be allocated. For the
agencies listed above, the allocation of contingent emergency funds required at this time are
displayed on the enclosed table. In addition, these agencies will provide detailed justification
material for these requirements to the committees specified in Public Law 105-277, as well as the
relevant appropriations subcommittees, concurrent with the transmittal of this letter. OMB will
continue to monitor agency requirements and will address additional funding needs as they
emerge.
OMB's strategy to ensure agency Y2K compliance is predicated on agency accountability.
We have systematically monitored agency progress through agency goals for: compliance of
mission critical systems, progress on the status of mission critical systems, status of mission
critical systems being repaired, and agency Y2K cost estimates.
These performance measures have proved useful in ensuring agency accountability without
diverting vital resources from Y2K compliance activities to reporting requirements. Provided
with this package is OMB's most recent Y2K Quarterly Report to the House and Senate
Appropriations Committees, which includes an assessment of these performance measures. Our
next quarterly report will be forwarded to Congress in December. In assessing agency progress
towards compliance, OMB has focused on the four measures described above. The report also
details other initiatives -- such as the Year 2000 Information Disclosure Act -- that are part of the
Administration's overall plan for achieving Y2K compliance.
For most of the agencies listed in this transmittal, the following constitutes the agency plan
required by Public Law 105-277:
- the OMB Quarterly Report, and
- The justification materials provided by the agencies concurrent with the transmittal of
this letter.
For several small, independent agencies included in this transmittal -- Selective Service
System, Corporation for National and Community Service, Federal Trade Commission,
Securities and Exchange Commission, United States Holocaust Memorial Council, and the
United States Information Agency -- the justification materials provided serves as the agency
plan. OMB has been monitoring the progress of these small agencies, and will ask them to report
back on their status early next year.
We look forward to working with you to ensure a smooth transition on January 1, 2000.
Enclosures
Identical Letter Sent To:
The Honorable Bob Livingston
The Honorable David R. Obey
The Honorable Ted Stevens
The Honorable Robert C. Byrd
The Honorable Robert F. Bennett
The Honorable Christopher J. Dodd
The Honorable F. James Sensenbrenner, Jr.
The Honorable George E. Brown, Jr.
The Honorable Dan Burton
The Honorable Henry A. Waxman
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