HR 4635 - - 09/25/2000
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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503

STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB
WITH THE CONCERNED AGENCIES.)


September 25, 2000
(Senate)

H.R. 4635 - DEPARTMENT OF VETERANS AFFAIRS AND
HOUSING AND URBAN DEVELOPMENT, AND
INDEPENDENT AGENCIES APPROPRIATIONS BILL, FY 2001


(Sponsors: Stevens (R), Alaska; Bond (R), Missouri)

This Statement of Administration Policy provides the Administration's views on the Veterans, Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 2001, as approved by the Senate Committee. Your consideration of the Administration's views would be appreciated.

The President's FY 2001 Budget is based on a balanced approach that maintains fiscal discipline, eliminates the national debt, extends the solvency of Social Security and Medicare, provides for an appropriately sized tax cut, establishes a new voluntary Medicare prescription drug benefit in the context of broader reforms, expands health care coverage to more families, and funds critical investments for our future. An essential element of this approach is ensuring adequate funding for discretionary programs. To this end, the President has proposed discretionary spending limits at levels that we believe are necessary to serve the American people.

The President's senior advisers would recommend he veto the House bill over the elimination of funding for National Service, failure to address poverty and the shortage of affordable housing, undermining of investments in our future through space research and science and technology, reductions in our ability to pursue critical opportunities in basic research through the National Science Foundation, adverse affects on the environment and public health, adverse affects in our ability to respond quickly and fully to unforeseen disasters, and the inclusion of objectionable anti-environmental and other riders. The Administration appreciates the efforts of the Senate Committee in developing a bill that makes significant funding improvements over the House bill, as well as minimizing objectionable language riders. Despite these improvements, however, there continue to be serious problems that must be addressed before the bill is presented to the President.

While the Administration appreciates the Senate Committee's commitment to continue funding for the Corporation for National and Community Service, we regret that the Senate Committee bill provides inadequate funding, undermining the Administration's proposal to provide an additional 12,000 Americans the opportunity to help meet serious needs in communities across the country. The Senate Committee has severely reduced funding from the request for the Department of Housing and Urban Development (HUD), eliminating some of the most important increases that the President has requested to help HUD address poverty and the shortage of affordable housing. The Administration strongly objects to the Committee's decision not to fund new incremental Section 8 housing assistance vouchers in FY 2001, and to underfund Administration initiatives to invest in our Nation's cities, including the lack of funding for the Hastert-Clinton agreement on New Markets/Community Renewal/Empowerment Zones and the Community Development Financial Institutions Fund. The Administration has serious concerns about the structure of the new housing production program included in the Committee bill.

The Administration appreciates the Committee's action to show strong support for the National Science Foundation (NSF) by providing a $400 million increase above the FY 2000 funding level. Although this is a 10-percent increase, it is still $275 million below the President's request. This reduction from the request would eliminate funding for almost 10,000 researchers and science and mathematics educators -- slowing innovation and reducing the number of well-trained students needed by the Nation's high tech industries. It would also reduce funding for critical Administration initiatives in information technology and nanotechnology.

The Administration has serious concerns about the Committee's reduction to the Environmental Protection Agency's (EPA's) basic operating programs, which would seriously affect EPA's ability to provide American communities with cleaner water, cleaner air, and safer food. The Administration is concerned that the Committee has significantly reduced the Administration's request and added earmarks for the National Aeronautics and Space Administration (NASA), presenting a severe obstacle in our ability to carry out current programs.

Detailed discussions of certain of these issues, as well as additional Administration concerns with the Senate Committee bill, are provided in the attachment. We look forward to working with the Congress to address our mutual concerns.

Attachment



Attachment

DEPARTMENT OF VETERANS AFFAIRS AND
HOUSING AND URBAN DEVELOPMENT, AND
INDEPENDENT AGENCIES APPROPRIATIONS BILL, FY 2001

(As Reported by the Senate Committee)

Corporation for National and Community Service

The Administration appreciates the Senate Committee's commitment to providing funding for the Corporation for National and Community Service. However, the amount provided for AmeriCorps and other programs is inadequate. In its current form, the Committee bill would cut AmeriCorps Grants by $77 million below the President's request and $26 million below the FY 2000 level. This action undermines the Administration's proposal to provide an additional 12,000 Americans the opportunity to help meet serious needs in communities across the country -- including efforts to help bridge the digital divide -- and would reduce the current strength of AmeriCorps by 3,000. The Committee bill provides $29 million for program administration, $7 million below the request and $1 million above FY 2000. Fully funding program administration is crucial for the Corporation to support State commission administrative costs and continue making financial managerial improvements that the Congress and the Administration believe are critical. In addition, the $50 million rescission of balances in the National Service Trust could endanger the Corporation's ability to pay educational awards earned by AmeriCorps members in the future. The Administration strongly urges that additional funding be provided to the Corporation.

Department of Housing and Urban Development

The Senate bill provides $30.6 billion for the Department of Housing and Urban Development (HUD), an overall programmatic reduction of $1.8 billion to the President's request, excluding proposed offsets. This reduction would eliminate some of the most important increases that the President has requested to help HUD address poverty and the shortage of affordable housing.

Environmental Protection Agency

The Administration appreciates the Committee's restraint in attaching anti-environmental riders to the Environmental Protection Agency's (EPA's) appropriations, and in approving the Administration's Tribal initiatives. However, the Administration is disappointed that the Senate Committee has chosen not to follow the House's lead in avoiding earmarked, special interest projects within the EPA's budget. Unfortunately, these types of unrequested projects squeeze out funding for core environmental and statutorily required programs. The Administration hopes to work with the Congress through the remainder of the appropriations process to eliminate remaining riders and restrain special interest projects.

The Administration has several major concerns with the funding levels provided for EPA in the Committee bill that must be addressed before enactment. In particular, the Administration strongly opposes the $219 million, or more than five percent, reduction to the Administration's request for EPA's Operating Programs, which are the backbone of the Agency's work. A cut of this magnitude would seriously affect EPA's ability to provide American communities with cleaner water, cleaner air, and safer food. The reduction to the operating programs would force the Agency to choose between addressing critical environmental needs, such as protecting the public from pesticides, and conducting environmental enforcement.

Specifically, the Committee bill would hamper EPA's efforts to reduce smog, soot, and air toxic emissions, primarily in urban communities. This would leave 80 percent of our citizens exposed to hazardous air pollution. The Senate Committee's proposed reductions would also slow the Agency's efforts to control the causes of fish kills and hazardous algae blooms in the Nation's rivers, lakes, and streams. Major cuts are targeted at:

The Administration opposes the $72 million reduction to the request for Superfund funding available to the EPA, which under this Administration has operated at a record pace to clean up hazardous waste sites. This reduction would needlessly jeopardize the public health for citizens living near affected sites by eliminating virtually all new cleanup starts, depriving EPA of critical enforcement funds, and making it difficult to meet the President's 900-site construction completion goal by FY 2002. Further, the Administration objects to the Committee's proposal to finance half of the appropriation from general revenue. Such financing is contrary to the "polluter pays" principle and would be unfair to the general public, who would be forced to pay for the irresponsible actions of polluters.

The Administration objects to the elimination of funding for the Clean Air Partnership Fund. This Fund would provide grants to State and local governments for innovative projects that reduce multiple air pollutants, such as toxics, soot, and smog, as well as reducing greenhouse gases. This Fund would support a wide range of projects that would mean cleaner air and savings for consumers.

The Administration also objects to the Senate's $50 million reduction in funding for critical infrastructure projects to address conditions along the U.S./Mexico border, where hundreds of thousands of residents face serious health threats caused by the discharge of untreated and inadequately treated wastewater. The incidence rates for typhoid in parts of the border area are nearly 200 times the U.S. nationwide rates and over 500 times the national rate for amoebic dysentery. Congress should restore full funding for this program.

Finally, the Administration opposes Committee bill language related to the Kyoto Protocol. The bill language, which purports to prohibit the implementation of the Kyoto Protocol, is unnecessary as the Administration has no intent of implementing the Protocol prior to congressional ratification.

Council on Environmental Quality

The Administration appreciates the additional $84,000 for FY 2001 provided in the Committee bill, but believes full funding of the requested increase of $204,000 is needed for the Council on Environmental Quality (CEQ) to fulfill its statutory responsibilities. The Administration opposes the Committee's bill language prohibiting the use of detailees by CEQ and urges the Senate to eliminate this language as the House has done.

National Aeronautics and Space Administration (NASA)

The Senate Committee bill provides $13,844 million for NASA, a reduction of $192 million to the President's request. The Administration appreciates the Committee's efforts to fully fund NASA's Space Launch Initiative, a critical priority for enabling a vibrant future civil space program. However, the Committee bill includes two, large unallocated reductions and a large number of unrequested earmarks. Together, these reductions and the net effect of earmarks totaling $406 million present a severe obstacle to NASA's ability to carry out current programs. The Administration urges the full restoration of funding and reconsideration of the serious displacement of NASA research and development activities threatened by the magnitude of earmarks included in the bill.

Community Development Financial Institutions

The Administration is very concerned with the Senate Committee's decision to fund the Community Development Financial Institutions (CDFI) Fund at $95 million, $30 million below the request. This reduction would result in approximately 45 fewer organizations receiving awards than assumed in the request. We urge the Senate to fully fund CDFI at the President's request of $125 million. Funding the Administration's request will enable CDFI to meet the increasing demand by financial institutions to leverage investments, make loans, and provide technical assistance and other financial services in some of the country's most distressed communities. In addition, we ask the Senate to adopt the appropriations language proposed in the budget and passed by the House, and to provide funding for administrative expenses at the level requested by the President.

National Science Foundation

The Administration will work with Congress to fully fund the President's requested 17-percent increase for NSF. The Administration is particularly concerned with the following priority areas.

Federal Emergency Management Agency

The Administration greatly appreciates the efforts of the Senate to provide funds needed for the operation of the Federal Emergency Management Agency (FEMA). The Administration also appreciates the Senate's support for FEMA's mitigation programs and recognition of the need for flood map modernization. This support will help to prevent future losses of life and property. However, the Administration urges the Senate to allow the use of up to $30 million of disaster relief funds for flood map modernization, as requested (instead of the $15 million provided in the Committee mark and without the restrictions in the Committee mark), and to provide the full request of $30 million for pre-disaster mitigation so that communities can take steps to become more disaster resistant.

The Administration strongly urges the Senate to provide the full request of $140 million for the Emergency Food and Shelter Program. Funding the program at only $110 million would result in 25 million fewer meals served and more than one million nights of temporary lodging not provided. The Administration also strongly urges the Senate to provide the $25 million requested to establish a pilot grant program to fund firefighter health and safety-related activities. More than 100 firefighters lost their lives in the line of duty last year, and countless more were injured.

National Credit Union Administration

The Administration is concerned that the bill does not provide the $1 million requested for the National Credit Union Administration (NCUA) to support community development credit unions. The timely loans and technical assistance provided by NCUA help new and developing credit unions meet the needs of traditionally under-served customers. We request that the Senate restore these funds.

Department of Veterans Affairs

Consumer Product Safety Commission

The Administration commends the Senate for providing $52.5 million for the Consumer Product Safety Commission, the same as the request, and $1.5 million more than the House has provided. These funds will ensure that the Commission's can sustain its efforts to protect children and families against unreasonable risks of injury and death from consumer products.



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