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This Statement of Administration Policy provides the Administration's views
on S. 2132, the Department of Defense Appropriations Bill, FY 1999, as
reported by the Senate Appropriations Committee. Your consideration of the
Administration's views would be appreciated.
The Committee has developed a bill providing requested funding for many of
the Administration's priorities. We appreciate the Committee's decision to
fully fund readiness programs. Also, we are pleased that most of the
modernization priorities of the Department of Defense are funded at or near
requested levels. However, the Administration is disappointed that the
Senate, based on OMB's preliminary scoring, has provided $475 million below
the President's overall request for this bill due to increases in lower
priority military construction projects. Also, as discussed below, the
Administration has serious concerns about certain provisions included in
the Committee bill, which must be addressed satisfactorily as the bill
moves through the process.
Funding for Bosnia
The Administration regrets that the Committee did not include funding for
our ongoing operations in Bosnia and looks forward to a satisfactory
resolution of this issue. U.S. military presence, albeit at lower force
levels, is critical for continued progress in implementing the Dayton Peace
Accords. Although funding requirements for operations in Bosnia were not
known when the FY 1999 Budget was prepared, the Administration created a
funding reserve in the budget to cover these costs, and on March 3, 1998,
the President requested funding for this purpose. A secure funding source
at the start of the fiscal year allows the Department to manage its
readiness accounts effectively throughout the year. The Administration
strongly urges the Senate to provide emergency funding in the Defense
Appropriations bill and appreciates the Committee's consideration of these
concerns.
Unrequested Funding
The Committee bill increases funding for programs that due to higher
priority military requirements are not in the Future Years Defense Program
(FYDP), or, that should not be funded at the expense of DoD's FY 1999
requirements. These increases include $50 million for continued operation
and modification of excess B-52 bombers, $255 million for three additional
C-130J airlift aircraft, $287 million for National Guard and Reserve
equipment (not including C-130 aircraft), $94 million for the Space Based
Laser program, and $50 million for advance procurement of the LHD-8
amphibious ship. Moreover, to complete procurement of the LHD-8, extensive
funding will be required in later years. These increases would be at the
expense of higher priority defense programs.
Reduction in Request for Intelligence Budget
The Administration objects to the Committee's significant reduction to the
FY 1999 funding request for U.S. intelligence. The Committee's reduction
would slow the Administration's efforts to strengthen our Intelligence
capabilities. The Administration urges the Senate to appropriate the full
amount of the President's request to ensure that the Intelligence Community
can meet the most pressing needs of our national policy makers and
combatant commanders. The Director of Central Intelligence will provide
additional detail on these classified issues prior to the conference on the
Defense appropriations bill.
O&M Adjustments
The Administration appreciates the bill's emphasis on preserving military
readiness through strong funding of most O&M programs. However, force
readiness could be threatened by the bill's reductions to other O&M
efforts, such as civilian personnel pay. The President's request is very
tightly constructed within the discretionary caps agreed to in the
Bipartisan Budget Agreement. Any adjustments must be carefully evaluated
to ensure that sufficient funding is available for DoD operations and
support programs. The Administration is also concerned that additional
restrictions may be placed on O&M accounts that would further hinder the
ability of field level commanders to meet mission requirements quickly in a
constantly changing environment. The Administration would like to work
with the Congress to address these issues prior to final congressional
action on the bill.
Reduced Funding for the Next-Generation Aircraft Carrier
The Committee bill would reduce funding for research and development of
CVX-78, the next-generation aircraft carrier, by $116 million, a 61-percent
decrease from the President's request. A reduction of this magnitude would
jeopardize the Navy's ability to design and deliver new aircraft carrier
technologies and would make it difficult to achieve life-cycle cost
reductions, a major goal of the aircraft carrier development program. The
Administration urges the Senate to restore funding to this important
development effort.
Reduced Funding for Dual Use R&D
The Committee has provided $36 million for the Dual Use Applications
Program, $30 million below the President's request, and $73 million for the
Commercial Operations and Support Savings Initiative, $30 million below the
request. The Administration urges full support of these programs, which
are needed to ensure that DoD systems employ technologies used in
commercial products to good advantage. These dual-use technologies will
help lower production and support costs and help modernize many DoD systems
more readily than could be done through use of DoD-unique technologies.
Next Generation Internet
The Committee has provided only $30 million for Next Generation Internet
(NGI) funding, $10 million less than requested. Funding this program will
support research into high-rate data networking technologies that will be
needed by DoD's information-intensive systems in the near future. The
Administration urges full funding of the NGI request.
Potential Objectionable Amendments
The Administration understands that several amendments may be offered which
would undermine the President's prerogatives as Commander-in-Chief and
potentially harm U.S. national security. These amendments would:
prescribe a force drawdown in Bosnia; potentially require prior
congressional authorization of actions taken by the President to protect
our national security pursuant to his authority under the Constitution;
and, alter the current commercial satellite export licensing jurisdictions
of Executive Branch agencies. The President's senior advisors would
recommend veto of this bill if it includes these or similar amendments.
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