This Statement of Administration Policy provides the Administration's views
on the FY 2000 Emergency Supplemental Appropriations Bill as reported by
the House Appropriations Committee. The Administration is pleased that the
Committee has acted expeditiously on the President's supplemental requests
to keep the peace and build stability in Kosovo, to support the Colombian
government's fight against drug traffickers, to provide needed heating and
cooling assistance for families that have been badly affected by increased
oil prices, and to provide further assistance to the victims of Hurricane
Floyd.
The Administration does, however, have a number of concerns with the
Committee bill, and we ask that you consider our views. We urge your
prompt action on this bill so that assistance can be provided in a timely
way, as this legislation is time-sensitive. For example, if the bill is
not enacted soon, the Department of Defense will have to make irreversible
decisions to curtail training and maintenance activities essential to
readiness; victims of Hurricane Floyd may have to spend a second winter in
temporary shelters; Emergency Low Income Home Energy Assistance may not be
available for the summer cooling season; and, urgent assistance needed to
reduce the incidents of ethnic violence in Kosovo will be delayed.
Support for the U.S. Military
The Administration appreciates the House approving our funding request for
military activities in Kosovo. Given the timing of the deployment and the
constraints of last fall's appropriations cycle, it was impossible to
include this funding in the President's FY 2000 Budget or FY 2000 Defense
Appropriations Act. Therefore, the Administration submitted a supplemental
request for the funding. We urge the Congress to act expeditiously on the
supplemental to ensure that our military readiness is maintained.
Burdensharing
We share the Congress' concern that our European allies carry the lion's
share of the burden of the civilian effort in Kosovo. We continue to press
our allies to meet their commitments and to uphold a fair burdensharing
arrangement. We believe these commitments will be met. But we would
resist congressional efforts that would result in termination of our
mission in Kosovo prematurely, would terminate funding necessary to support
our troops, or would undermine our efforts to restore stability and
democracy to Kosovo. Such efforts would put at risk the considerable
progress we have made in this troubled region.
Support for Eastern European Democracies
The Administration appreciates the Committee's support for programs
designed to foster democracy in Croatia, Montenegro, and Serbia.
Similarly, the Administration appreciates the Committee's support for
funding our share of the costs of the international civilian police force
for Kosovo. This police force is critical to ensuring the safety of all
citizens of Kosovo and equally important as the key to relieving our armed
forces from the burden of police work.
The Administration, however, strongly opposes the elimination of the $80
million in funding for critical programs to support civil implementation
and revitalize Kosovo's economy and civil society. Short-changing the U.S.
contribution to these programs would retard the establishment of effective
local authorities, prolong the region's dependence on foreign aid, and
delay the achievement of conditions under which we can reduce the
international presence, including U.S. forces, in Kosovo. We also urge
that funding be provided for establishment of vetted anti-organized-crime
units among the local police in Albania, Kosovo, and Bosnia. Hand in hand
with these programs is the requirement for adequate staff and facilities to
ensure they are run effectively. Therefore, the Administration requests
that the Congress reconsider the reduction to USAID administrative funds as
well.
Contributions to International Peacekeeping
The Administration is particularly concerned about the lack of funding for
expected assessments to support critical United Nations (UN) peacekeeping
operations in Kosovo and East Timor. These payments are critical if we are
to help restore peace to these troubled areas. These are bills we must
pay. We expect to receive an assessment for East Timor in the next month
and for Kosovo in early July. These bills will become new arrears if they
are not paid in thirty days. We have requested $91 million for the UN
mission in Kosovo (UNMIK), which is performing an extraordinarily difficult
but essential task of overseeing civilian administration until the people
of Kosovo are able to assume that responsibility themselves. Our $16
million request for the UN mission in East Timor (UNTAET) would help the UN
perform a similar mission to facilitate the transition of East Timor to
full independence. The absence of full and timely U.S. payment of our
assessments would severely impede the success of these missions. Having
won important progress for democracy and stability in both of these areas,
we should invest in their stability by paying our share of the cost.
Security and Maintenance of U.S. Missions/Diplomatic and Consular
Programs
The Administration appreciates the action taken by the House Committee to
ensure the safety of Americans serving in Sarajevo by providing funding to
construct a new, secure facility. However, the Administration is
disappointed that no funding has been provided in the Committee bill for
other requested security and operational needs in Kosovo and the region.
Secure facilities are also needed for Pristina, Kosovo, to support a
continuing presence to allow the United States to remain engaged in an area
that has a long and turbulent history of ethnic violence and repression,
and Tirana, Albania, to accommodate staffing needed to manage a more
complex U.S.-Albania relationship on a range of political, humanitarian,
development, and military issues. Also left unfunded are the increased
costs of diplomatic operations in Southeast Europe. The Administration
urges the Congress to provide additional funds to ensure the security of
our employees serving U.S. interests in Kosovo and working to achieve
lasting peace in the region.
Plan Colombia
The Administration appreciates the House Committee's support for U.S.
assistance to Plan Colombia. Colombia is the source of more than 90
percent of the cocaine and 65 percent of the heroin seized in the United
States. Cutting off the drug supply at its source is an important
component of America's overall counter-drug strategy. Plan Colombia,
President Pastrana's strategy to address Colombia's national security,
socioeconomic, and drug-related problems, presents the United States with a
window of opportunity to further U.S. interests and increase stability in
South America. The Administration also appreciates the Committee's support
for the important human rights, alternative development, and governmental
reform initiatives in Colombia. Congress' timely support of Plan Colombia
will help to stem the flow of drugs into the United States and will further
benefit the United States by bringing greater peace and prosperity to an
important American ally.
However, the Administration is concerned about the House Committee's
funding reduction of $47 million of Counter-narcotic Battalion (CNBN)
support and of certain items under interdiction support. The creation,
training and equipping of these special CNBNs is critical to Colombian
efforts to enter the southern coca-growing areas. U.S. assistance to Plan
Colombia was carefully designed as an integrated package, and the
Administration looks forward to working with Congress to try to restore
this funding to ensure that this program is successfully implemented as an
integrated whole.
Heavily Indebted Poor Countries Trust Fund
The Administration is concerned that the Committee bill includes none of
the $210 million requested for a contribution to the Heavily Indebted Poor
Countries (HIPC) Trust Fund to support the participation of regional
development banks and other international financial institutions in the
enhanced HIPC initiative. This initiative, a key outcome of the Cologne
G-8 Summit, has broad international support as well as bipartisan support
in the Congress, and is designed to ease the debt burden of strong economic
reformers such as Mozambique, Uganda, and Bolivia. The failure of the
United States to provide any funding for the HIPC Trust Fund would
significantly restrict the ability of some of the International Financial
Institutions (IFIs) to participate fully in this important initiative.
This would delay the objectives of easing the debt burden and providing an
incentive for the poorest countries to implement the macroeconomic and
structural reforms necessary to improve their economic performance and
increase their ability to address, with their own resources, critical
social issues such as education and health.
In particular, failure to provide these funds would jeopardize multilateral
debt reduction for eligible Latin American countries. Without early
Congressional action this year on the supplemental appropriation request,
debt relief to some of the strongest economic reformers, such as Bolivia,
cannot move forward, undermining poverty reduction and economic growth
efforts. Each dollar that the U.S. provides will leverage $27 from other
creditors.
Agricultural Assistance for Areas Affected by Natural Disasters
The Administration commends the Committee for including requested funds
needed to assist farmers and rural residents in recovering from Hurricanes
Dennis, Floyd, and Irene. These provisions will allow funds to be used to
replace damaged farm structures and equipment that are essential for
producers to continue their operations in the coming year, and they will
help producer-owned marketing associations recover from severe losses
sustained in last year's hurricanes. In addition, the rural housing
assistance in the Committee bill will ensure that low-income rural
residents who were displaced by the hurricanes have safe, decent, and
affordable housing long after the temporary FEMA housing assistance
expires.
Princeville, North Carolina
The Administration appreciates the Committee's provision of $1.5 million
for the Corps of Engineers to study the feasibility of providing additional
flood protection for the city of Princeville, North Carolina. Given the
recent devastation this community has experienced, as well as its unique
place in American history, we need to move quickly to evaluate flood
protection measures needed to protect this community adequately.
Economic Development Administration/National Oceanic and Atmospheric
Administration
The Administration appreciates the funding provided by the Committee in
response to the recent hurricane-related fisheries disasters and the Long
Island Sound lobster fishery disaster. We urge that funding likewise be
provided to address the West Coast groundfish disaster, as well as
contingency funding for other disasters that may be declared.
Assistance to Vieques, Puerto Rico
We commend the Committee for providing the requested funding to implement
the President's directives on Vieques, Puerto Rico. The training facility
at Vieques is important to sustaining the readiness of our Naval forces.
We are working to accommodate our training needs while addressing the
concerns of the people of Vieques. The Administration's plan will help
balance national security with the health, safety, and environmental
concerns of Vieques's residents. We look forward to working with the House
to ensure that the funding is spent effectively and efficiently in support
of these goals.
Low Income Home Energy Assistance Program
The Administration commends the Committee for funding the President's
request for $600 million in contingent emergency funds under the Department
of Health and Human Services' Low Income Home Energy Assistance Program
(LIHEAP). The emergency fund has been exhausted responding to the winter
fuel price increases. Requested funds will ensure sufficient resources in
the event of unusual heat this summer.
Federal Aviation Administration
The Administration has requested authority to reallocate $39 million within
the Federal Aviation Administration (FAA) for FAA Operations, as well as
language authorizing the Secretary of Transportation to transfer funds to
Operations from other Transportation accounts. The requests are necessary
to allow FAA to meet better the operational requirements of the air traffic
control system, including addressing increased delays and maintaining
safety and security. While the pending FAA authorization bill provides $26
million, we are disappointed that the House Committee has not approved this
high-priority supplemental requirement.
In addition, the Administration has requested a $77 million, fully offset
FAA Operations supplemental. The FY 2000 appropriation for FAA Operations
is $184 million below the President's request. Although the FAA has done
its best to maintain high levels of safety, security, and system efficiency
within the appropriated level, it is unable to do so. Therefore, we urge
the House to approve these supplementals, thereby assuring smooth and
efficient operations.
Rescission of Mandatory Research and Rural Development Funds
The Administration strongly opposes provisions that would block further
spending from the mandatory Fund for Rural America and agricultural
research grants authorized by the Initiative for Future Agriculture and
Food Systems. These provisions would deny vitally needed funding to
support economic development in rural areas, such as water and waste
disposal grants and loans, farm labor housing, and outreach to
socially-disadvantaged farmers. In addition, the House Committee bill
would cut research on human nutrition, methods to improve farm efficiency
and profitability, and food safety. These programs serve ends that are
supported by the vast majority of both urban and rural Americans, and we
urge the House to strike these provisions.
Department of Energy
The Administration urges the House to provide the full $19 million
requested for low-income home weatherization in the energy conservation
account in FY 2000, as opposed to providing the funds in FY 2001, as
specified in the Committee bill. These funds are needed for building
rehabilitation of an additional 9,000 - 9,500 low-income homes -- work that
is best done before the heating season. In order to be helpful next
winter, the funds would need to be disbursed to States this summer. If the
funds are not available until October, there is little chance that they
will make it to local service agencies and into weatherization improvements
for the next heating season.
The Administration appreciates the Committee's provision of funds for: (1)
environment, health, and safety activities at the gaseous diffusion plants
in Portsmouth, OH, and Paducah, KY; (2) physical and cyber-security
activities across the Department of Energy complex; and, (3) personnel and
other funding requirements at the Department's weapons production plants.
Restoring Budgetary Conventions
The Administration commends the Committee for approving the President's
proposal to restore budgetary conventions by repealing the pay date delay,
the Department of Defense prompt payment delay, and the Department of
Health and Human Services obligation delays.
The Administration also proposes to replace FY 2001 advance appropriations,
where such appropriations departed from budgetary conventions, with full,
up-front funding in FY 2000. The Administration looks forward to working
with the Congress to shift those advance appropriations that are not
required for programmatic reasons.
Other Funding Issues
- Mozambique. With the assistance of the Department of State, the
Agency for International Development, and other agencies, OMB is reviewing
the need for assistance to ameliorate the humanitarian and economic crisis
caused by heavy rains in Mozambique and neighboring countries. We expect
to finish this expedited review shortly. We will work with the Congress to
meet these urgent requirements.
- Summer Youth. As the bill moves forward, the Administration
urges the Congress to approve the recently transmitted FY 2000 supplemental
request of $40 million for the Employment and Training Administration.
These funds would support youth activities by providing summer jobs or
other opportunities to about 24,000 low-income youth. Consistent with both
the Congress' and the Administration's comprehensive approach to improving
services to, and the outcomes for, low-income youth, these resources would
provide support to local communities while they develop strategies for
leveraging private sector involvement in -- and resources for -- youth
transition programs, including the summer jobs component.
- Ricky Ray. As the bill moves forward, we recommend that the
Congress provide the $100 million supplemental requested for
payments authorized by the Ricky Ray Hemophilia Relief Trust Fund
Act. The $750 million trust fund was established for the purpose
of disbursing payments to persons with hemophilia who contracted
HIV through the use of tainted blood products between July 1982
and July 1987. The Administration is committed to full funding
for the Ricky Ray Trust Fund. This request for $100 million is
possible due to the availability of Y2K remediation funds no
longer needed.
- Presidential Advisory Commission on Holocaust Assets in the United
States. As the bill moves forward, the Administration urges
the Congress to approve the recent FY 2000 supplemental request
of $1.4 million for the Presidential Advisory Commission on
Holocaust Assets in the United States. The supplemental funds
would support additional activities related to the completion of
a comprehensive statutorily mandated report on the acquisition
and disposition of Holocaust-era assets in the United States due
to Congress by December 31, 2000.
- Social Security Administration. As the bill moves forward, we
urge that the Congress approve the recently transmitted FY 2000
supplemental request of $35 million for the Social Security
Administration. This request would fund the one-time cost of
repealing the retirement earnings test for workers at or above
the normal retirement age. This funding is needed to cover the
administrative costs of processing retroactive benefit payments
and additional claims, handling the expected increases in
telephone calls and field office visits, and reprogramming
computer systems, while ensuring no deterioration in FY 2000
service levels.
- Critical Infrastructure. The FY 2001 Budget requested an FY
2000 supplemental of $9 million to "jump start" some of the
highest priority cyber-terrorism programs. This funding will be
used to design and develop the programs in FY 2000 so that in FY
2001 they will be ready for full implementation. The Committee's
elimination of the funding would delay these components of the
Government-wide effort to protect the Nation's critical
infrastructure. The Administration urges the Congress to fully
fund this important program.
- Internal Revenue Service. We strongly recommend that the House
fund the $40 million supplemental for IRS staffing requested in
the President's budget. The IRS has recently faced increased
workload with reduced staffing, resulting in falling audit rates
(threatening the level and fairness of tax compliance) and
difficulty in meeting customer service standards. The
President's budget addresses this issue by proposing nearly 3,000
new FTE in FY 2001 to stabilize IRS staffing as its modernization
effort is implemented. The FY 2000 supplemental is necessary to
begin hiring and training these personnel immediately so they can
begin to deliver performance improvements as soon as possible.
- Small Business Administration General Loans. The Administration
is disappointed that the Committee bill fails to provide $6.1
million to address increased demand for 7(a) loans, including
increased demand by businesses that have been particularly
affected by rising oil prices; $1.0 million for the Program for
Investment in Microentrepreneurs Act of 1999 (PRIME); and, $0.5
million to help implement the Veterans Entrepreneurship and Small
Business Development Act of 1999.
- Devils Lake. The Administration strongly urges the House to
approve the $6.6 million request to address emergency flood
conditions confronting communities surrounding Devils Lake, North
Dakota. Extraordinary flood conditions persist in this area
despite extensive Federal and State efforts to date, including
over $300 million of Federal spending for flood response actions.
These supplemental funds are critically needed for planning and
design of an emergency outlet as well as to meet fully the
requirements of the National Environmental Policy Act and other
environmental laws and of the Boundary Waters Treaty of 1909,
which must be completed before construction of an outlet may
begin.
- Commission on Civil Rights. The Committee bill does not provide
the additional $800,000 requested for the Commission on Civil
Rights, which would fund completion in FY 2000 of a number of
research projects currently underway at the Commission, including
reports on racial tensions Nationwide, Federal enforcement of the
Americans with Disabilities Act, the crisis of African-American
men in inner cities, and Federal enforcement of fair employment
law.
- Committee for Purchase from People Who are Blind or Severely
Disabled. The Committee bill fails to fund the President's
request of $687,000 for the Committee for Purchase from People
Who are Blind or Severely Disabled, which administers the
Javits-Wagner-O'Day (JWOD) Program. JWOD uses the purchasing
power of the Federal Government to provide employment and
training opportunities to approximately 34,000 people who are
blind or have other severe disabilities. These funds would
substantially expand marketing of JWOD products to Federal
employees as a response to fundamental shifts in Federal
acquisition of commercial-type products. While the President's
budget addresses this issue by proposing $4.158 million to
administer the JWOD program, the FY 2000 supplemental is
necessary to expand marketing of JWOD products and services this
year.
- National Technical Information Service. The Administration
notes that the House Committee bill does not provide closure
costs for the National Technical Information Service (NTIS). If
actions are not taken in FY 2000, the strategy for handling
NTIS's mission will need to be addressed in the context of
legislation for FY 2001.
Language Issues
- Transfer Authority for the Departments of Education and Health and
Human Services. The Administration objects to the Committee bill's
repeal of the Department of Education's authority in section 304 of the FY
2000 Labor/HHS/Education Appropriations Act to transfer between
appropriations up to one percent of discretionary funds appropriated to the
Department. Congress has routinely provided this flexibility so that the
Secretary can respond to unanticipated events, and the Secretary has always
promptly notified and consulted with the Congress before using this
authority. The Administration strongly urges that this authority be
retained.
The Administration also objects to the Committee bill's reduction of
the Department of Health and Human Services' transfer authority.
The Committee bill would exclude the Centers for Disease Control
and Prevention from this authority for the remainder of FY 2000.
The Administration strongly urges that the Congress maintain the
Department's flexibility to address emerging issues.
- Plant Pest and Disease Assistance. The Administration opposes
House report language that would direct the Secretary of
Agriculture to submit simultaneously to the Congress and OMB
copies of apportionment requests for funding to implement certain
emergency declarations. The consideration of these apportionment
requests solely within the Executive Branch is necessary for
effective exchange of information and views, to the same extent
and for the same reasons that apply to the intra-Administration
development of the annual President's budget.
The Committee bill provides $40 million to compensate lost profits of
growers affected by citrus canker in Florida. The Administration is
concerned that the language appears to override the usual provisions
guiding farm assistance, granting broad assistance to these producers. For
example, unlike income assistance the Congress has provided in the last two
years for other farmers, there would be no gross revenue eligibility
determination or limitation on the size of payments. This could create
disparate treatment for farmers and ranchers.
There are a number of unrequested funding items in the House Committee bill
that the Administration does not believe are necessary. We would like to
work with the House as the bill moves forward to address such items. We
request that the House not add extraneous riders to the bill -- riders that
would adversely affect the environment or public health or generate
controversy that could unnecessarily delay the urgently needed emergency
assistance contained in this bill.
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