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This Statement of Administration Policy provides the Administration's views on
S. 1005, the Department of Defense Appropriations Bill, FY 1998, as reported by
the Senate Appropriations Committee. Your serious consideration of the
Administration's concerns are critical to the effective operations of these
important programs.
The Committee has developed a bill that provides requested funding for many of
the Administration's priorities. We appreciate the Senate's decision to fund
the National Missile Defense program at the levels recommended in the
Quadrennial Defense Review (QDR). Likewise, we appreciate the Senate's fully
funding, at requested levels, contingency operations in both Bosnia and
Southwestern Asia.
The Administration, however, has serious concerns about certain provisions of
the Committee bill. Under Committee scoring, the bill provides $247.0 billion
in total discretionary funding, exceeding the President's request by $3.7
billion, an amount greater than the increase assumed in the Bipartisan Budget
Agreement. Achieving this funding level required a reallocation of funds from
Department of Energy programs to Department of Defense programs, an action that
we believe is an unacceptable deviation from our understanding of the
Bipartisan Budget Agreement. Moreover, the Committee bill provides funds for
unrequested programs not in the DoD Future Years Defense Program (FYDP), at the
expense of higher priority programs requested by the Department. We urge the
Senate to eliminate funding for programs not anticipated in the Pentagon's
long-range plans and restore funding to programs of higher priority.
Increases in Procurement Programs Not in the FYDP
The Committee has added $3.8 billion to the Administration's request for
procurement and $0.6 billion to the request for research and development. Some
of these increases are for programs that are not in the FYs 1998-2003 FYDP and
are of questionable value to the Department's overall plans to modernize
military forces. These additions include: $177 million for WC-130 weather
reconnaissance aircraft; $40 million for the Armament Retooling and
Manufacturing Support program; $73 million for an oceanographic survey ship;
$118 million for Spaced-Based Laser Technology; $50 million for the Clementine
II Program; and, $50 million for Kinetic Energy Anti-Satellite technology.
While we appreciate the flexibility the Committee provides for allocating the
National Guard and Reserve equipment increase, we nonetheless oppose the
additional $653 million that has been added for programs not in the FYDP.
Incremental Funding of the CVN-77
The bill would provide the first increment of funding for the tenth
Nimitz-class nuclear aircraft carrier, CVN-77, by adding $345 million in FY
1998 to accelerate advance procurement and construction. Although the
Administration is committed to building CVN-77 (the requirement for which was
validated by the Quadrennial Defense Review), we oppose incremental funding of
procurement programs. The FYs 1998-2003 FYDP fully funds CVN-77 construction
in FY 2002. This schedule is consistent with force structure requirements and
aircraft carrier replacement schedules.
Restriction on Presidential Foreign Policy Prerogatives
The bill includes several general provisions that would limit the President's
flexibility to conduct foreign relations regarding North Korea (section 8066)
and to support United Nations peacekeeping operations (sections 8079 and
8081). The Administration urges the Senate to delete these provisions.
Cooperative Threat Reduction Program
The bill reduces DoD's Cooperative Threat Reduction (CTR) program by $60
million from the Administration's request. The CTR program is an important and
highly effective means of enhancing U.S. security through eliminating weapons
of mass destruction and preventing weapons proliferation. The request of $382.2
million is a bare-bones figure based on a difficult prioritization of a long
list of potential projects. The proposed reduction would force DoD to delay
several projects in the Former Soviet Union in critical areas such as the
destruction of nuclear delivery systems and chemical weapons, improvements to
the safety and security of stored nuclear warheads and fissile material, and
the cessation of production of weapons-grade plutonium. The Administration
urges the Senate to restore funding to the requested level.
Environmental Cleanup of Former DoD Sites in Canada
The Committee has denied a funding request for an environmental restoration
program at former U.S. military bases in Canada. In October 1996, the U.S.
agreed to pay for its fair share of the cleanup costs at bases used by the U.S.
military during the Cold War. Failure to fund these activities would leave the
U.S. unable to fulfill an agreement with a close ally. We strongly urge the
Senate to fund this request.
Joint Chiefs of Staff Exercise Program Cuts
The bill recommends sharp reductions to requested funding for the Joint
Chiefs of Staff (JCS) exercise program. This program provides for
transportation of U.S. forces to engage in large-scale joint training
operations with other U.S. services and allies. The Administration is
concerned about the size of the reduction to this program and will work with
the Congress to determine the appropriate funding level for JCS exercises as
the bill moves through the process.
Overseas Humanitarian Disaster and Civic Assistance
The Administration objects to the Committee's $40 million cut to DOD's
Overseas Humanitarian Disaster and Civic Assistance (OHDACA) account. The
Administration requests restoration of funding for the OHDACA account to the
President's requested level so that the Department can respond appropriately to
unanticipated global emergencies.
F-22 Fighter Aircraft
The Committee-reported bill would eliminate $213 million requested for
termination liability for the Engineering and Management Development (EMD)
stage of the F-22 program. The bill also would delete $81 million requested
for advance procurement funding for the F-22. These reductions would cause
unnecessary disruption to the program as it transitions from EMD to low-rate
production. The Administration asks that the Senate restore funding to the
level requested in the President's budget to ensure that the program continues
on a stable course, consistent with the changes identified by the F-22 Joint
Estimate Team.
Strategic Sealift Ships
The Committee has not funded the Administration's request for two strategic
sealift ships. Procuring sufficient sealift capability is a key element in our
national strategy to respond to major theater wars and meet global crises in a
timely fashion. The requirement for these sealift ships was originally
identified in the Mobility Requirements Study (MRS), revalidated in the MRS
Bottom Up Review Update, and confirmed in the QDR. Despite some early cost and
schedule overruns, the program is now proceeding satisfactorily. The
Administration urges the Senate to restore funding to the requested level and
to allow continuation of this critical program.
Dual Use Application Program
The bill would appropriate only $125 million of the $225 million requested for
the Dual Use Applications Program (DUAP). This program helps to develop and
incorporate technologies used and tested by the cost-conscious commercial
sector into military systems, allowing DoD to take advantage of cost savings
that flow from the production efficiencies of larger-scale commercial
manufacturing lines. Reducing funding for DUAP would result in higher costs
for future defense systems. The Administration strongly opposes the
Committee's reduction from the requested amount for this high priority program.
Advanced Concept Technology Demonstration Program
The Committee bill would reduce by $20 million the President's $121 million
request for the Advanced Concept Technology Demonstration (ACTD) program. This
program supports work on new and innovative defense system concepts and could
provide the basis for systems providing a decisive military edge over
adversaries in the next century. This reduction would limit the Department's
ability to test these new defense systems early in the development phase, when
changes to these systems provide the greatest payoff. The Administration urges
the Senate to restore funding to the level requested in the President's budget.
Next Generation Internet
The Committee would reduce the President's request of $40 million for the Next
Generation Internet program by $30 million. This program will support research
and development to connect university and Federal labs with high-speed networks
that are 100 to 1,000 times faster than today's Internet. The Administration
urges the Senate to restore funding to the requested level for this important
program.
Unmanned Aerial Vehicle
The Administration objects to the termination of the Outrider unmanned aerial
vehicle (UAV) program. The Outrider remains the highest priority UAV program,
and its termination would significantly delay the fielding of any UAV
reconnaissance capabilities.
O&M Appropriation by Budget Activity
By creating separate subdivisions at the Budget Activity level in Operations
and Maintenance accounts, the Committee would severely restrict the flexibility
of DoD financial managers to execute programs effectively. The effect of the
Committee's action would require the use of transfer authority for every dollar
transferred between Budget Activities at every level of command. The
Administration strongly urges the Senate to appropriate funds for Operations
and Maintenance programs at the account level, which is consistent with
traditional practices.
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