| This Statement of Administration Policy provides the Administration's views
on the Commerce, Justice, and State, the Judiciary, and Related Agencies
Appropriations Bill, FY 1999, as reported by the House Appropriations
Committee.  Your consideration of the Administration's views would be
appreciated. 
The Administration appreciates the Committee's support for many of the
President's priorities within the 302(b) allocation.  For example, we
appreciate the Committee's funding of law enforcement programs in general
and the COPS program in particular.  Funding COPS at the requested level of
$1.4 billion is consistent with the Balanced Budget Agreement and would
enable us to achieve the goal of hiring 100,000 additional police officers
by the year 2000.
 
However, the allocation is simply insufficient to make the necessary
investments in other critical programs funded by this bill.  The only way
to achieve the appropriate investment level is to offset discretionary
spending by using savings in other areas.  The President's FY 1999 Budget
proposes levels of discretionary spending for FY 1999 that conform to the
Bipartisan Budget Agreement by making savings in mandatory and other
programs available to help finance this spending.  In the Transportation
Equity Act, Congress -- on a broad, bipartisan basis -- took similar action
in approving funding for surface transportation programs paid for with
mandatory offsets.  We want to work with the Congress on mutually agreeable
mandatory and other offsets that would be used to increase high-priority
discretionary programs, including those funded by this bill.  In addition,
we hope that the Committee will reduce funding for lower priority and
unrequested discretionary programs, and redirect funding to programs of
higher priority.
 
The Administration has very serious concerns, discussed below, with the
Committee's inadequate funding of a number of priority programs, as well as
with objectionable language provisions.  If the bill were presented to the
President in its current form, the President's senior advisers would
recommend that the President veto the bill.
 
Legal Services Corporation
 
The Committee bill funds the Legal Services Corporation (LSC) at $141
million, $142 million below the FY 1998 enacted level and $199 million
below the President's request of $340 million.  This funding level is
unacceptable.  It represents a 65-percent cut from the FY 1995 level of
$400 million, would severely cripple the program, and calls into question
the Federal Government's commitment to ensuring that all Americans,
regardless of income, have access to the Judicial system.  The Supreme
Court recently ruled that interest on lawyer trust accounts (IOLTAs) are
the private property of clients and cannot be used to generate resources
for civil legal services.  This eliminates a funding source that provided
LSC programs with more than $57 million last year and underscores the
importance of action to fully fund the President's request. The
Administration strongly supports efforts to increase funding for the LSC.
 
Small Business Administration
 
The Administration strongly objects to the Committee's funding levels for
the administration of the Small Business Administration's (SBA's) programs.
The Committee's funding level for the Salaries and Expenses account regular
operating expenses represents a 27- percent reduction from the President's
request, and includes a requirement that all of the reduction be taken from
headquarters functions.  Such funding levels would require reductions in
staff by more than 1,200 staff years through severe reductions-in-force.
Not even the elimination of all headquarters employees would satisfy the
Committee report requirement to take reductions solely from non-District
Offices.
 
Equal Employment Opportunity Commission
 
The Administration strongly urges the House to fully fund the President's
request of $279 million for the Equal Employment Opportunity Commission
(EEOC), $18.5 million above the Committee mark.  The additional resources
are essential and would allow EEOC to reduce the backlog of pending
complaints and implement much-needed reforms in the way all complaints are
managed, including an enhanced alternative dispute resolution program.  We
look forward to working with Congress to provide funding for EEOC and other
programs included in the President's civil rights enforcement initiative.
 
Department of Commerce
 
   Decennial Census.  The language in the Committee bill is
   unacceptable.  It is critical that the Congress provide full-year
   funding for the Decennial Census without any restrictions on the use of
   statistical sampling.  Delays or disruptions would unacceptably
   complicate the management of this massive operation.  We urge the Rules
   Committee to permit an amendment that removes these onerous language
   restrictions and provide funding that allows the Census Bureau to
   implement its current plan.  This plan was developed by statistical
   experts and based on recommendations from the National Academy of
   Sciences, which found that regardless of cost, the methods of the past
   could not achieve satisfactory accuracy.  The statistical methods
   incorporated in the Bureau's plan would produce the most accurate census
   possible and virtually eliminate the large undercounts of minorities,
   children and other groups that occurred in the 1990 census.
   National Oceanic and Atmospheric Administration.  The
   Administration objects to inadequate funding for Administration
   priorities within the National Oceanic and Atmospheric Administration
   (NOAA), including:  the Clean Water Initiative to protect coastal
   communities; the GLOBE program, which promotes scientific discovery and
   student achievement; and, activities to implement the Endangered Species
   Act and Magnuson-Stevens Act.  Reductions to the Climate and Global
   Change Program would slow research to understand the implications of
   extreme weather events such as El Nino.  In addition, by not fully
   funding the request for the National Weather Service, the Committee
   threatens vital services.  Also, the Administration strongly objects to
   the extension of exclusive fishery management authority in Alabama,
   Louisiana, and Mississippi, which would undermine the current management
   regime to protect fisheries resources.   Finally, the Administration is
   concerned with funding restrictions in bill language that could limit
   NOAA's ability to fulfill its mission. 
    The Administration is also particularly concerned about inadequate
   funding to fulfill contract obligations for the geostationary weather
   satellite program.  Renegotiation or termination of these contracts
   would jeopardize satellite continuity and increase costs.  The recent
   failure of the GOES-9 satellite underscores the need to maintain
   production schedules.  The satellite allowance would necessitate a
   restructuring of the converged satellite program -- a complex and
   carefully negotiated multi-agency system. 
    
   National Institute for Standards and Technology.  The
   Administration is concerned that the Committee's exclusion of the
   requested advance appropriation for the Advanced Measurement Laboratory
   would increase costs and delay completion by at least a year.  We are
   also very disappointed by the lack of support for the Advanced
   Technology Program, which fosters cutting-edge research.  The Committee
   allowance would support only $43 million in new awards, 54 percent below
   the President's request of $94 million for new awards.
   Statistics Initiatives.  The Administration is concerned
   about inadequate funding for high- priority statistical initiatives,
   especially the improvement of National Account measures, the Poverty
   Measure initiative, and the Continuous Measurement program, which will
   provide annual demographic information on the population and eliminate
   the need for the "long form" in the 2010 Census.
   Minority Business Development Agency.  Management reforms at
   the Minority Business Development Agency (MBDA) have improved delivery
   of programs and technical assistance, and MBDA has emerged as a
   stronger, more focused agency.  The Administration objects to the
   reduction to MBDA's base and requests restoration of $2.8 million.
   National Information Infrastructure Program and Other Issues.
   In the Committee bill, the National Information Infrastructure program
   is reduced by $4 million (20 percent) below the FY 1998 enacted level.
   Such a reduction would substantially decrease seed money for innovative
   information technology projects.  In addition, the Administration
   strongly objects to onerous reporting requirements that would require
   the Department to notify Congress before exporting satellites to
   China. 
 Year 2000 Computer Conversion
 
 In the FY 1999 Budget, the President has requested more than $1 billion
 for Y2K computer conversion.  In addition, the budget anticipated that
 additional requirements would emerge over the course of the year and
 included an allowance for emergencies and other unanticipated needs.  It
 is essential to make Y2K funding available quickly and flexibly.  The
 House effort to defer action on the emergency fund in the Treasury and
 General Government Appropriations bill is very troubling, particularly in
 light of several Subcommittees, including the Commerce, Justice, State
 Subcommittee, deciding to not fund the base Y2K requests.
 
 Department of Justice
 
 The Administration appreciates the Committee's continued support for law
 enforcement and other Department of Justice activities.  However, as
 discussed below, we are concerned about Committee action in a number of
 areas.
  
    Title V -- At-Risk Children's Grant Program.  The
   Administration urges the House to provide $95 million requested for the
   At-Risk children's proposal.  The At-Risk proposal supports local
   community prevention programs such as mentoring, truancy prevention, and
   gang intervention to prevent young people from becoming involved in the
   criminal justice system.
   Drug Testing and Intervention.  We are disappointed by the
   Committee's failure to provide any of the $85 million requested for the
   drug testing and intervention program.  Systematic drug testing is a
   proven, cost-effective means of using the coercive power of the criminal
   justice system to move non-violent offenders into drug treatment
   programs.
   Imposition of State Ethics Rules.  The Administration
   strongly opposes the provisions in the bill that would impose State
   ethics rules on Federal attorneys and establish an independent board
   that could fire Federal agents, prosecutors, and civil law enforcement
   attorneys.  These provisions would undermine Federal law enforcement by
   subjecting Department of Justice attorneys to multiple and inconsistent
   State rules of conduct, transferring to the States the authority to
   regulate the conduct of Federal attorneys in the performance of their
   Federal law enforcement duties.
   Protection Against Terrorism, Including Use of Chemical and
   Biological Weapons.  We appreciate the Committee's support of the
   Administration's effort to combat terrorism, particularly the use of
   chemical and biological weapons.  However, we ask that the Committee
   fully fund the request for the Attorney General's Counterterrorism Fund,
   including funding for local bomb squad equipment.
   Protection Against Cybercrime and Attacks on Our Nation's
   Critical Infrastructures.  The Committee mark excludes
   Counterterrorism Fund support to combat cybercrime, including funding
   for potential transfer to other agencies and for the FBI's National
   Infrastructure Protection Center.  The Department of Commerce has
   identified funding requirements for the interagency Critical
   Infrastructure Assurance Office, which coordinates the development and
   integration of a national critical infrastructure plan.  Failure to
   provide funding would endanger the Government's efforts to fight
   cybercrime.
   Indian Country.  We appreciate the Committee mark for Indian
   Country.  However, we urge the House to fully fund the Administration's
   request for Indian Country criminal justice assistance, including FBI
   and U.S. Attorneys resources.
   Federal Bureau of Investigation.  The Administration is
   disappointed that the Committee's level for the Federal Bureau of
   Investigation (FBI) is $52 million below the President's request.  We
   are particularly concerned about the proposed $30 million funding level
   for the FBI's Information Sharing Initiative (ISI), which is $20 million
   below the request, and would prevent the FBI from improving its
   electronic case file information and thereby increasing the
   effectiveness and efficiency of the FBI's investigations.  Furthermore,
   the reporting requirement on ISI would impede the FBI's ongoing efforts
   to provide critical information technology infrastructure support using
   existing resources.
   Immigration and Naturalization Service.  We appreciate the
   Committee's support for the Administration's border control initiative.
   However, the Committee's $2.567 billion mark, $156 million below the
   President's request, is insufficient to support a comprehensive,
   bipartisan border management and enforcement strategy.  The President's
   request supports increased border management funding for Border Patrol
   agents, critical infrastructure and technology, detention support,
   interior enforcement, and includes $36 million more than the Committee's
   level for Border Patrol, detention, and office construction.  We urge
   the House to fully fund the President's request.
   Bureau of Prisons/Abortion.  The Administration urges the
   House to strike section 103 of the Committee bill, which would prohibit
   the Bureau of Prisons from funding abortions except in cases of rape or
   where the life of the mother is endangered.  The Department of Justice
   believes that there is a great likelihood that this provision would be
   held unconstitutional.
   Juvenile Justice Block Grant.  The Administration is
   concerned that the $250 million Juvenile Justice Block Grant in the
   Committee bill may authorize a broad and unfocused range of spending,
   and urges the House to provide funding for more targeted activities,
   including direct funds for local prosecutors to target juvenile and
   quality of life crimes.
   Narrowband Communications.  The Administration is
   disappointed that the Committee has not provided the $86 million
   requested to establish a fund for the consolidation and coordination of
   the Department's conversion to narrowband communications systems.  We
   urge the House to establish such a fund and to restore the $24 million
   in base resources that are excluded from the Committee mark. 
Potential Amendment Related to Presidential Executive Order
 
The Administration would strongly oppose an amendment that may be offered
that would prohibit the use of funds in the Act for implementing the May
28, 1998, Presidential Executive Order which provides a uniform policy for
the Federal Government to prohibit employment discrimination based on
sexual orientation in the Federal civilian workforce.
 
International Affairs Programs
 
The Administration appreciates the Committee's support for the Department
of State's Diplomatic and Consular Programs and Salaries and Expenses
accounts.  However, we are concerned about the Committee's reduction of $26
million for the Department's operating requirements.  Further, the
Committee's reduction of $38 million to the request for information
technology improvements in the Capital Investment Fund would jeopardize the
Department's effort to achieve Y2K compliance.  In addition, limits placed
on the amount of fees to execute the President's Border Security Program
that can be used in FY 1999 could slow urgently needed border security
improvements.
 
The Administration is very concerned about the Committee's $245 million
reduction to the request for Security and Maintenance of U.S. Missions.
The Committee's mark does not fund construction of needed Embassy projects
in Beijing and Berlin and would require offsets against regular security
and maintenance activities to fund initial design work for these important
projects.  We request that the Committee provide a funding level consistent
with the President's budget for urgently needed embassy facilities and
ongoing security and maintenance programs, including Y2K-related
activities.
 
The Administration appreciates the steps the Committee has taken to fund
the request for arrearage payments this year.  The Administration wants to
work with the Congress to ensure that these funds are available in a timely
fashion to retain our influence in these organizations and to identify
reform measures that further U.S. interests.  However, we strongly oppose
the bill's authorization requirement that is intended to subject this
important foreign policy measure to the unrelated issue of family planning
policy.  There is legitimate disagreement over this issue, but none of the
U.N. and related international organizations arrears payments is related to
this issue.  Therefore, it is wholly inappropriate to hold the payment of
U.S. arrears hostage to the family planning issue.
 
Further, although the Committee has provided significant funding for the
Contributions to International Organizations (CIO) and Contributions for
International Peacekeeping Activities for FY 1999, the Administration is
concerned that reductions in these accounts would increase arrears and
impair the ability of the United States to address foreign policy interests
through the mechanism of U.N. peacekeeping.
 
The Administration opposes the Committee's proposal to provide up to $15
million for Comprehensive Nuclear Test Ban Treaty needs by transfer from
the CIO account without any increase in funding.  We strongly believe that
these important activities should be funded at the $29 million level, as
requested in the Nonproliferation, Anti-terrorism, Demining and Related
Programs account.
 
The Administration is concerned about the $21 million overall reduction to
the request for the U.S. Information Agency (USIA).  Given that the USIA
request is virtually at the FY 1998 level, the Committee's reduction would
hurt core public diplomacy activities, Year 2000 compliance, critical
broadcasting activities including broadcasting to Africa, and important
grant programs.  We urge the House to provide funding for USIA's operating
and special accounts at the requested level.
 
Finally, the Administration is concerned about the Committee's reductions
for the Arms Control and Disarmament Agency, the Asia Foundation, the
American Institute in Taiwan, and the International Commissions. Such
reductions would place a disproportionate burden on the operating budgets
of these small agencies.
 
Federal Communications Commission
 
The Administration is very concerned about the lack of funding for any of
the requested increases for the Federal Communications Commission (FCC).
The Committee's funding level could require an agency-wide furlough or
reduction-in-force, impairing the FCC's ability to implement the mandates
of the Telecommunications Act of 1996 and to carry out critical mission
operations.
 
Teamsters Election
 
The Administration objects to the continuation of last year's rider that
prohibits the use of funds for supervising the Teamster's election, despite
a court order requiring the Federal Government to pay for a supervised
election.
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