Statement of Administration Policy: S. 1298 - National Defense Authorization Act for Fiscal Year 1994

(Senate)
(Nunn (D) GA)

The Administration supports S. 1298, as reported by the Committee on Armed Services. The funding authorized in the bill is critical to maintaining our Nation's defense capabilities. The Administration is pleased that the bill supports many of the President's high priority programs, including: (1) readiness; (2) selected acquisition programs such as the D-5 missile, B-2 bomber, F-22 Advanced Tactical Fighter, and certain navy ships; (3) funding for Cooperative Threat Reduction; and (4) the Administration's policy regarding homosexuals in the military. The Administration is also pleased that the bill supports the scorekeeping procedures of the Office of Management and Budget and the Administration's program to continue to provide for the safety and reliability of the nuclear weapons stockpile.

The Administration, however, is concerned with several of the bill's provisions and urges the Senate to amend these provisions to make them consistent with the President's request. These provisions would:

—      Reduce funding for intelligence programs. The Administration would strongly oppose any amendment that would further cut funding for intelligence activities.

—      Allow for concurrent payment of veterans disability compensation and military retirement pay starting in FY 1995 to those retirees who are totally disabled from a service-connected disability. The Administration strongly opposes this provision, which would result in paying military retirees for both their service and their disability, instead of the higher of the two.

—      Authorize $3 million more than requested for the Defense Nuclear Facilities Safety Board and require the Board to submit budgetary and legislative information, including the Board's budget request, to Congress when this information is submitted to the President or the Office of Management and Budget. The Administration opposes this addition of funds and the budgetary and legislative submission requirements. There are no circumstances that justify the submission of the Board's budget and legislative program to Congress prior to its review by the President.

—      Authorize unrequested funds for AH-64 helicopters, TOW missiles, and tank engine production. The Administration opposes the addition of these and other unrequested funds at the expense of the higher priority programs requested in the President's Budget.

—      Authorize $635 million for unrequested Guard and Reserve equipment, and personnel levels for the Naval Reserve, Air National Guard, and Coast Guard Reserve that are 18,360 higher than those requested by the Administration.

—      Authorize a 2.2 percent pay raise for military personnel beginning January 1, 1994. The President's budget proposed that there be no Federal employee pay raises in FY 1994.

Moreover, the Administration opposes any amendments that would:

—      Reduce funding for the Ballistic Missile Defense below the level of $3.45 billion authorized in the bill.

—      Limit the President's flexibility to complete the mission to Somalia.

—      Accelerate the withdrawal of U.S. troops from Europe or lead to a troop strength of less than 100,000. As the orderly withdrawal of forces from Europe continues, the Administration will proceed to negotiate vigorously arrangements with U.S. allies that seek to be more beneficial to the United States.

—      Preclude any option for plutonium disposition at this time.

Further, the Administration urges the Senate to resist amendments that would transfer previously appropriated defense funds to non-defense related programs of other agencies.

Finally, the Administration has proposed legislation authorizing Global Cooperative Initiatives that reflects a coordinated Administration position and recommends its adoption in lieu of those provisions of the bill pertaining to Global Cooperative Initiatives.

During further congressional action on this legislation, the Administration will work with the Senate towards resolution of these and other issues identified as the Administration continues its review of S. 1298.

Pay-As-You-Go Scoring

S. 1298 would increase direct spending; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act (OBRA) of 1990. The bill does not contain provisions to offset the increased direct spending. Therefore, if the bill were enacted, its deficit effects could contribute to a sequester of mandatory programs.

OMB's preliminary scoring estimates of this bill are presented in the table below. Final scoring of this legislation may deviate from these estimates. If S. 1298 were enacted, final OMB scoring estimates would be published within 5 days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending and receipts will be reported to Congress at the end of the congressional session, as required by OBRA.

Pay-As-You-Go Estimates
($ millions)