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For Immediate Release Contact: Linda Ricci STATEMENT OF G. EDWARD DESEVE Today, the Office of Management and Budget is releasing its seventh quarterly report reviewing Federal agency progress on the Year 2000 (Y2K) problem. I am pleased that agencies have made significant progress since the last quarterly report and that, overall, 61 percent of the government's mission-critical systems are now Year 2000 compliant, up from 50 percent last quarter. These systems will be able to accurately process data as we make the transition from 1999 to 2000. Eleven agencies have achieved OMB's most favorable rating, Tier 3. Among these agencies, 84 percent of mission-critical systems are Year 2000 compliant -- four months before the March 1999 government-wide goal. The Small Business Administration is the first agency to have completed work on all of its critical systems and the Social Security Administration reports that 99 percent of its critical systems are now Year 2000 compliant. Improved progress over the last quarter enabled the Departments of Education, Interior, and Housing and Urban Development to move into higher tier rankings. Nonetheless, several agencies still face significant challenges in preparing their systems for the Year 2000. OMB and the President's Council on Year 2000 Conversion will continue to provide support to those agencies identified as making insufficient progress toward meeting the March 1999 government-wide goal for compliance. These agencies will continue to submit monthly reports to OMB on their progress. OMB will also continue to work to ensure that agencies have the necessary resources for their Year 2000 efforts. The Omnibus Appropriations Act, which President Clinton signed on October 23, included an emergency funding provision for unexpected Year 2000 conversion activities, consisting of $1.1 billion for defense-related activities and $2.25 for non-defense activities. This legislation will help ensure that agencies have sufficient resources to make a smooth transition to the year 2000.
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