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Statement of Administration Policy: H.R. 2191 - Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 1994

September 20, 1993

STATEMENT OF ADMINISTRATION POLICY

(Senate Floor)
(Sponsors: Byrd (D), West Virginia; Mikulski (D), Maryland)

This Statement of Administration Policy provides the Administration's views on H.R. 2491, the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 1994, as reported by the Senate Appropriations Committee. The Administration supports senate passage of H.R. 2491 as reported by the Committee and will work with Congress to address the concerns described below and in the attachment.

President's Investment Program

The Administration is pleased that the Committee has funded many of the President's key investment programs, including the National Service Initiative. However, the Administration is concerned that the Committee bill does not provide adequate funding for certain investment initiatives and other programs that are of high priority to the President. These include Community Development Banks, incremental vouchers for Section 8 Housing, and certain key science and technology initiatives.

To make room for Community Development Banks, incremental vouchers, and other priority programs, the Administration urges the Senate to reallocate funding from lower-priority programs. For example, the Committee has provided $150 million more than requested for the lead-based paint hazard reduction program. The President's request would fund the program at a level consistent with the current availability of people trained and certified to perform inspection and abatement. As another example, the Administration suggests that investment funding for incremental Section 8 vouchers replace funds currently designated for slower-delivery housing construction.

The Administration also encourages the Senate to consider the discretionary savings proposals contained in the President's FY 1994 Budget that are not included in the Committee bill. The Administration is committed to working with the Senate to identify reductions, in an effort to provide funding for those investment proposals that are not yet authorized.

National Service Initiative

The Administration commends the Committee for providing funding for the National Service Initiative and strongly supports full program funding for this initiative. The Administration supports the language in the National and Community Service Trust Act of 1993 that makes educational awards available to all eligible national service participants and urges the Senate to delete bill language that would limit the amount that may be used for educational awards authorized under section 129(b) of the Act.

Community Development Banks

The Administration urges the Senate to restore the $60 million requested for the Community Development Bank initiative, which would provide funding for financial institutions serving low-income distressed areas to expand the availability of loans and credit for housing and business purposes in these traditionally under-served communities. This initiative is an integral component of the Administration's commitment to restoring the economic health and vitality of the nation's urban and rural areas. The President transmitted proposed authorizing legislation, entitled the "Community Development Banking and Financial Institutions Act of 1993," to Congress on July 15, 1993.     Currently, these funds could be appropriated under section 853 of the Housing and Community Development Act of 1992.

National Aeronautics and Space Administration (NASA)

The Administration supports the Committee's overall funding level for NASA as well as the funding provided for the Space Station. The Administration would strongly oppose an amendment to strike Space Station funding.

The Administration is concerned that the overly restrictive bill language for the space station (i.e., funding caps, funding restrictions, restrictions on Russian participation, and capability restrictions) would impede important reforms within the program and the redesign effort. The Administration is committed to working with the Committee to respond to its concerns so that these provisions can be deleted or modified. The Administration also urges the deletion of other restrictive language on Russian space cooperation, the Earth Observing System Data Information System, Landsat, and Department of Defense funds for planetary missions. If NASA is to implement successfully the substantial reforms that are already underway, which have been recommended by the National Performance Review, the agency must have full flexibility to do so without these unnecessary barriers.

The Administration strongly urges the Senate to restore the $50 million reduction to the highest priority programs in the President's New Technology Investments package (i.e., $20 million for Industry Technology, $20 million for science data purchases, and $10 million for small satellite technologies). The New Technology Investments package is a key component in fundamentally redirecting NASA toward an industry-driven process for setting technology priorities and strengthening the U.S. economy. The Committee has chosen to add unrequested funding for a second Discovery mission and a single-engine Centaur upper stage. Under current budget constraints, starting these projects would be premature, especially in view of their significant out-year costs and their smaller contribution to the new direction for NASA proposed in the President's New Technology and Investment program.

The Committee bill would provide $163 million of the $313 million requested for the Advanced Solid Rocket Motor (ASRM) and would direct that this amount be used to terminate ASRM unless the Administration proposes other offsets. The Administration does not support the Committee's reductions to the ASRM program. The ASRM will provide additional capability for the Space Shuttle.

Environmental Protection Agency

The Administration is pleased that the Committee bill specifically identifies $70 million in requested funding for water infrastructure projects in the San Diego, California, area, which were authorized in section 510 of the 1987 Water Quality Act. the Administration urges the Senate to restore the $80 million requested for water infrastructure projects in the colonias along the U.S.-Mexico border. This funding is needed to address major water quality problems in the border area.

The Committee bill would reduce funding for EPA's "green programs" by $5 million and would eliminate $17 million in funding for the Montreal Protocol Facilitation Fund. The "green programs" funding is critical to meeting the President's commitment to reduce greenhouse gas emissions to 1990 levels by the year 2000, and the Montreal Protocol funding is needed to fulfill international commitments to protect the ozone layer. The Senate is urged to restore funding for these priority items.

Housing and Urban Development (HUD)

Annual contributions for Assisted Housing. The Administration urges restoration of the President's investment request for low-income housing assistance. The first phase of this initiative would aid over 40,000 low-income families in FY 1994.     Each year, a higher number of families would be added until the annual increment of assistance reached 100,000 families in FY 1998. The Committee's action would eliminate the increased investment and would reduce the amount of incremental rental assistance below the FY 1993 level. The Senate is urged to defer funding for other programs, especially the increases above the President's request for costly, slow-delivery housing construction, in order to fund this initiative.

Innovative Homeless Fund. The Administration urges the Senate to provide resources for the new Innovative Homeless Fund — a program designed to fund innovative and comprehensive approaches for solving homelessness in areas where the extent of homelessness has created an emergency situation. The House has already passed legislation required to establish the Fund, and the Senate is expected to act soon.

Special Purpose Grants. The Administration commends the Senate for not including any special purpose grants for individual projects in this appropriations bill. This action will assure equity in the competition for HUD funds under published guidelines.

National Science Foundation

The Administration encourages the Senate to support funding for the National Science Foundation at the House level. While the Administration appreciates and shares the Committee's concern for renewing the nation's scientific infrastructure and ensuring knowledge transfer, the Administration is concerned that the report language is overly restrictive.

Additional Administration concerns with the bill as reported by the Committee are contained in the attachment.

Attachment


Attachment
(Senate Floor)

ADDITIONAL CONCERNS

H.R. 2491 — DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS BILL. FY 1994

(AS REPORTED BY THE SENATE APPROPRIATIONS COMMITTEE)

Community Investment Program

The Administration commends the committee for providing adequate funding for the Severely Distressed Public Housing and the Economic Opportunities for Low- and Very Low-Income Persons programs for use in Empowerment Zones. Because the Administration's Empowerment Zone program was funded below the requested level in the Omnibus Budget Reconciliation Act of 1993, it is important that the full $513 million originally requested for the Community Investment Program be provided to bolster the effectiveness of this program. The Administration asks that the balance of the request be appropriated under existing authorities: for community development financial institutions as authorized in section 853 of the Housing and Community Development Act of 1992; for Drug Elimination Grants in public housing; and for grants to support communities in developing the required strategic plans and to develop an evaluation plan for Empowerment Zones.

Housing and Urban Development (HUD)

Section 8 Contract-Renewals. The Office of Management and Budget would not score any decrease in outlays as a result of the Committee's reduction of $1 billion in HUD's Renewal of Expiring Section 8 Subsidies account. This reduction would permit HUD to shorten the term of the multi-year Section 8 contract, from a five-year mandatory term to a shorter length of time. Accordingly, it would cause the multi-year contracts to be renewed sooner but would not affect outlays in FY 1994. The Administration urges the restoration of these funds to permit funding for the full five-year term.

FHA General Insurance Fund. The Administration does not support the Committee's provision for quarterly appropriation of credit subsidy in the General and Special Risk Insurance Program. Such a division of budget authority would interfere with the Department's ability to make loan commitments on an as-needed and as-ready basis, hampering lending, particularly for large-scale rental housing developments.

Renewal of Expiring Section 8 Housing Contracts. The Administration urges the restoration of the advance appropriation of FY 1995 funds for Renewal of Expiring Section 8 contracts. This advance appropriation is essential to prevent any lapses in funding for these expiring contracts.

The Administration believes that the 7,525 units of new construction of public and Indian housing requested by the President is sufficient. The Senate is urged to eliminate funding for 2,300 additional units added by the Committee. The budget authority of almost $100 million associated with this increase could be used to provide needed housing through other HUD programs.

Interagency Council on the Homeless

The Administration urges the Senate to restore the funding request of $910 thousand for the Interagency Council on the Homeless (ICH). ICH plays a key role in coordinating Federal agency efforts to reduce homelessness and in providing information to providers and advocates, in accordance with the President's May 1993 Executive Order.

Federal Deposit Insurance Corporation (FDIC)

The Administration requests that the Senate provide the funding request of $7 million for the FDIC Affordable Housing Program. This program allows eligible single and multi-family properties held by the FDIC to be sold to qualifying low- and moderate-income families. Since its inception in FY 1992, approximately 1,500 families have acquired homes through this initiative. Without funding, this program would not be able to continue operating.

NASA

The Administration does not support the Committee's $39.5 million reduction to NASA's Research and Program Management account. The size of this reduction and the uncertainty of the timing of the NASA buy-out legislation could prevent NASA from effectively implementing the needed management reforms identified in the Space Station redesign process. The Administration commends the Committee for recommending early Senate action on government-wide early-out legislation.

The Administration supports funding for the Consortium for International Earth Science Information Network (CIESIN). CIESIN will be an important data source on human activities that affect the environment.

The Administration does not support the deletion of the AXAF-S mission. Flying AXAF-1 and AXAF-S in the same timeframe is important to getting the full science benefit from this x-ray mission. The Administration does not support the magnitude of the reduction proposed for commercial programs. This reduced funding level would be insufficient to conduct the COMET and CMAM flight programs and maintain other critical program elements.

Veterans Affairs (VA)

The Administration commends the Committee for restoring requested funds for VA Medical Care, $115 million above the House level. The Administration supports the Committee's action to delete the House's earmarking of $9.8 billion for personnel services within VA. Medical Care. Such earmarking would infringe upon VA's executive management of the veteran's health care system and preclude the Department from utilizing medical resources in the most efficient and effective manner.

The Committee bill would establish a health care reform contingency fund for the VA that would make $500 million available to the Department if the President requests these funds and designates them as an emergency. The Administration will request the necessary program funds to implement health care reform. Therefore, the Administration does not contemplate requesting the emergency funding that would be provided by this provision.

Environmental Protection Agency

The Administration is concerned about several key reductions to EPA's personnel resources. The $18 million reduction in the Program and Research Operations account would delete funding for approximately 300 workyears. Similarly, the $53 million reduction to the Limitation on Administrative Expenses in the Superfund account would leave EPA with insufficient resources to meet personnel expenses. These reductions would seriously hamper the agency's ability to carry out its mission, and the Senate is urged to restore these funds.

The Administration appreciates the Committee's action to include investment funding for the Environmental Technology Initiative (ETI) and the Federal Coordinating Committee on Science, Engineering and Technology (FCCSET) . However, the $4 million reduction to the high-speed computing and communication program is over 60 percent of the President's requested investment for this initiative. The Administration is concerned that the Committee's restrictions on ETI funding may significantly impact implementation of this initiative.

The Administration is also concerned with the $32 million general reduction to EPA's Research and Development account. This reduction would eliminate all growth requested by the President and potentially could have an adverse effect on ETI. The Administration urges the Senate to restore the Research and Development account to the requested level.

Federal Emergency Management Agency (FEMA)

The Administration supports the Committee's funding of $292* million in regular appropriations and $400 million in contingent appropriations for the FEMA Disaster Relief Fund. The President's request represents the historical annual obligation level of $320 million referenced in the Dire Emergency Supplemental Appropriations Act of 1992 (P.L. 102-229), adjusted for $28 million in anticipated regulatory savings. This funding is essential in providing assistance to areas plagued by natural disasters.

National Science Foundation (NSF)

The Administration considers basic research a high priority, continues to support it strongly, and is concerned with the Committee's large cuts to the research account that funds many targeted research efforts. These reductions include the Committee's recommendation to cut $50 million from NSF's contribution to the interagency high-performance computing and communications program, one of the Administration's highest priority technology programs. NSF's contribution is important to the larger, multi-agency research effort, which has significant potential to contribute to the nation's economy.

The Administration urges the Senate to reconsider the funding distribution between NSF's research and infrastructure accounts. The Committee is recommending a significant reduction to NSF's research programs in order to fund a large increase in infrastructure modernization. NSF funds only three percent of Federal R&D efforts and should not be the lead agency to support all Federal efforts to modernize academic research facilities and instrumentation.

The Administration is concerned about the level of funding provided for the Salaries and Expenses account and language shifting the higher annual rental costs to the Relocation account without also adding sufficient resources to provide for this requirement. The combination of these two recommendations could undercut the funds needed for relocation. NSF's relocation to Ballston, Virginia, has already begun. The Administration strongly urges that the funds be restored to reflect the higher annual rental rates.

Office of National Service

The Committee bill would provide $160,000 for the Office of National Service. The Administration urges the Senate to adopt language to provide the President with the discretion to use these funds as necessary within the Executive Office of the President in carrying out the purposes of the National and Community Service Act of 1990, as amended.

Office of Science and Technology Policy (OSTP)

The Administration supports the Committee's $500 thousand increase over the House funding level for the Office of Science and Technology Policy. The Administration continues to support the full funding of $5.17 million requested for OSTP. OSTP has assumed the responsibilities of two terminated councils (National Space Council, National Critical Materials Council). The President's request for OSTP already assumes a sizable reduction in budget and FTEs when compared to the levels OSTP and the two terminated agencies required in FY 1993. The reduction would constrain OSTP's ability to perform its expanded mandate.

The Administration strongly urges that the funding provided for the OSTP via NSF's Critical Technology Institute account be allocated directly to OSTP. If OSTP is to manage these funds appropriately, it should have direct control over them.

William J. Clinton, Statement of Administration Policy: H.R. 2191 - Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 1994 Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/330081

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