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Statement of Administration Policy: H.R. 2622 - Treasury Postal Service, and General Government Appropriations Bill, FY 1992

July 11, 1991

STATEMENT OF ADMINISTRATION POLICY

(Senate Floor)
(Sponsors: Byrd (D), West Virginia; DeConcini (D), Arizona)

The purpose of this Statement of Administration Policy is to express the Administration's views on the Treasury, Postal Service and General Government Appropriations Bill, FY 1992, as reported by the Committee.

The Administration strongly supports the Committee's action to reduce by $266 million funding provided by the House for the reduced-postage subsidy program. The Administration urges the Senate to terminate abuses of this program by implementing the President's proposals to achieve an additional $133 million in savings. The Administration notes that the Postal Rate Commission recommended in its July 8th report to the Congress a new legislative change that would reduce subsidies for nonstandard envelopes that cost the Postal Service substantially more to process. The Administration would support an amendment to establish the same subsidy rate for flats and letters, which would result in savings of $180 million.

The Administration would oppose a proposal to restore postal subsidies to the House-passed level of $649 million by reducing funds for Internal Revenue Service tax processing, tax law enforcement, and information services. These reductions would increase the risk of delayed refund checks, would make it more difficult to reach the Internal Revenue Service by phone, and would impede law enforcement efforts.

The Administration has serious concerns about several provisions of the bill as reported by the Committee:

  • Office of National Drug Control Policy (ONDCP). The Committee bill would provide $67 million for the ONDCP Special Forfeiture Fund, $10 million less than the President's request. The President has requested that $46 million from the ONDCP Special Forfeiture Fund be used for Federal prison construction and that $31 million be used for expanding the drug treatment system as part of the National Drug Control Strategy for FY 1992. The Committee bill would provide no resources from the Fund for Federal prison construction and would redirect funds requested for drug treatment system expansion to demonstration projects and other lower priority activities.

    Currently, Federal prisons are overcrowded at nearly 60 percent above capacity. Without the requested transfer of $46 million, the Federal Bureau of Prisons would not be able to expand detention space to address the ever- increasing number of individuals arrested for violating Federal drug control and other laws. The Administration's proposed drug treatment expansion program could stimulate enough growth in the treatment system to provide services to an additional 200,000 individuals. The Administration urges the Senate to provide the $77 million requested for the Special Forfeiture Fund and to fund Federal prison construction and drug treatment capacity expansion at the requested levels.

  • Internal Revenue Service (IRS) Initiatives. The Committee's $50 million reduction in IRS audit and collection initiatives would result in direct enforcement revenue losses of almost $900 million over a five-year period. In recent testimony before the Senate Government Operations Committee, GAO stated that the IRS accounts receivable inventory was increasing at a dangerous rate and required immediate attention. The Committee's action would undercut one of the Administration's key efforts to control the growth of delinquent IRS accounts receivable, which has been identified as one of the Federal government's high risk areas. Further, loss of these funds would severely hamper the IRS' ability to perform examinations of corporate and other high income taxpayers. The Administration urges the Senate to provide funding for these IRS initiatives at the requested level.

  • Customs Drug Interdiction Programs. The Administration urges the Senate to adopt a budget consistent with the 1992 National Drug Control Strategy, which proposes a shift away from interdiction programs towards higher payoff investigation, treatment and prevention efforts. The Committee bill includes $68 million in additional funding for unrequested programs that are inconsistent with the shift away from interdiction programs in the 1992 National Drug Control Strategy. The unrequested funding is $31 million for a fourth P-3 (AEW) aircraft, $10 million for additional helicopters, and $27 million for new aircraft hangers.

  • Office of Personnel Management (OPM). The Administration opposes the OPM General Provision of the Committee bill that would prohibit a reduction in non- foreign cost-of-living allowance (COLA) rates through December 31, 1995. The provision would restrict the setting of allowance rates, as intended under law, based on a comparison of living costs between the allowance area and the District of Columbia. There is no programmatic justification for such a restriction, and the Administration strongly urges that it be deleted.

On the basis of OMB's initial scoring, the Administration finds that the Committee bill is within the Senate 602(b) budget authority allocation, but exceeds the outlay allocation by $173 million.

Additional Administration concerns with the Committee bill are discussed in the attachment.

Attachment


(Senate Floor)

ADDITIONAL CONCERNS
H.R. 2622 — TREASURY, POSTAL SERVICE AND GENERAL GOVERNMENT APPROPRIATIONS BILL, FY 1992

MAJOR PROVISIONS OPPOSED BY THE ADMINISTRATION

A. Funding Levels

Department of the Treasury:

Chief Financial Officers Act of 1990. The Administration supports full implementation of the Chief Financial Officers Act of 1990 (CFOs Act). Funding requested by the President for the preparation and audit of financial statements was not provided by the Committee for the Internal Revenue Service or the Office of the Inspector General. The Administration strongly urges the Senate to provide this funding to carry out implementation of the CFOs Act.

Financial Management Service (FMS). Cash and Credit Management Initiatives: The Administration opposes the Committee's $4.9 million reduction to the request for the Financial Management Service. This reduction would impede implementation of the Federal Credit Reform Act of 1990 and the Cash Management Improvement Act of 1990. While existing staff are being shifted to these high priority projects, funding for major development and systems work is essential to support timely implementation of these Acts. In addition, the Committee's reductions to STAR PLUS and the Guaranteed Loan project would delay timely and successful completion of these priority projects. Funding for the Guaranteed Loan Project is critical to carrying out financial management systems reviews at VA, FmHA, HUD, and Education, each of which has been designated a high risk area. Defaulted guaranteed loans grew by more than $4.0 billion in FY 1990, primarily in these four agencies.

Financial Management Service (FMS). System 90. The Administration opposes the Committee's reduction in noyear funds for System 90. It appears that a technical error may have been made in the appropriations language regarding the amount of funds to remain available until expended (no-year funds). A reduction of $4.95 million was made to the $10.79 million specified as no-year funds in the request for several systems modernization efforts.. The Committee Report accompanying the bill cites specific initiatives for reduction, none of which were included in the no-year request.

A major contract challenge to System 90 slowed the initial award so that available funds could not be spent. Reducing the no-year total would limit FMS' flexibility to implement its modernization program and could promote premature spending decisions.

Customs Rent Increases. The Bureau of Customs has indicated that it faces an unbudgeted GSA rent increase of $23.5 million that is not funded in either the budget request or the Committee mark. This new requirement must be offset by reducing either base programs or new initiatives funded in the Committee's proposals.

Bureau of Alcohol, Tobacco and Firearms (ATF). Gang Analysis Information Center. The Committee has added $5.0 million to the ATF budget request for development of a national database on outlaw gangs, their members, and associates for use by Federal, State, and local law enforcement agencies. -It should be noted that ATF already maintains several automated databases on gang activity. Consequently, it is unclear exactly how these funds would be spent. The Administration did not request this initiative and cannot support it without a thorough review of its merits.

Bureau of Public Debt, Project NEXT. The Administration objects to the $6.6 million reduction for the Bureau of Public Debt's Project NEXT. These funds were requested to replace the obsolete computer mainframe used to track savings bonds and marketable securities transactions, as well as to account for the public debt. Deletion of these funds would seriously jeopardize the Bureau's ability to maintain compatibility with the Federal Reserve computer system. In addition, this action would threaten the Bureau's ability to maintain sufficient capacity for major cost saving development efforts (e.g., the Regional Delivery System and Project SEAS, which would replace the Bureau's 30-year-old Savings Bonds processing system).

General Services Administration:

Federal Buildings Fund. The President's FY 1992 Budget requests $472 million for the design and construction of new headquarters offices for the Department of Transportation (DOT) in Washington, D.C. Neither the Senate Committee nor the House has provided any funds for the construction of this project. Instead, both the House-passed bill and the Senate Committee bill have included funds for construction projects that are either not needed or are not priority needs at this time. The Administration strongly urges the Senate to delete funding for the nine projects added in the Committee bill and to restore the funds for the DOT headquarters project.

Rental of Space. The Administration objects to the Committee's $97 million reduction to the Rental of space account. This reduction could not practically be achieved; therefore, the Committee's recommendation falsely lowers outlays. The bill would direct GSA to reprogram funds in FY 1992 to pay for these lease expenses. GSA would likely have to reprogram funds from capital projects, which have a very small spendout in the first year. Since the Rental of space account spends out at 100 percent in the first year, GSA would have to reprogram over $500 million in capital projects in order to generate $97 million in outlay savings. The Administration urges the Senate to provide funding at the requested level.

Office of National Drug Control Policy (ONDCP):

Counter Drug Technology Assessment Center. It is the Administration's view that the $24 million provided by the Committee for research in the ONDCP accounts is excessive. The $1 million requested would provide sufficient "seed" money to promote coordinated law enforcement technology research.

High Intensity Drug Trafficking Area (HIDTA). The Administration objects to the additional $35 million provided for State and local assistance to High Intensity Drug Trafficking Areas. The Administration has already requested nearly $1.5 billion in funding for Federal drug programs in these designated areas.

Special Forfeiture Fund. The purpose of ONDCP's Special Forfeiture Fund is to provide resources for priorities identified in the National Drug Control Strategy. For FY 1992, those priorities have been identified as prison construction ($46 million) and drug treatment capacity expansion ($31 million).

Instead of providing funding for prison construction and drug treatment requested by the Administration, the Committee has earmarked Special Forfeiture Fund resources for a number of lower priority items. The $28 million provided for IRS agent support personnel for criminal investigations and $5 million provided for a new Secret Service West African drug initiative would come at the expense of other critical programs. The Committee's recommendations for the Secret Service would impose a new responsibility on the agency that is already being addressed by other law enforcement agencies. The funds for IRS criminal investigations would increase resources for this area by over 30 percent in a single year, an excessive rate of growth.

Office of Personnel Management (OPM):

Chief Financial Officers Act of 1990 (CFOs Act). Additional general fund and trust fund resources of $700,000 for Salaries and expenses and $650,000 for the Inspector General were requested by the President to prepare and audit OPM financial statements consistent with the CFOs Act. The Committee has not provided these resources. The Administration strongly urges the Senate to restore the requested $1.35 million to implement the CFOs Act-

B. Language Provisions

The Administration notes that, for procedural reasons, several provisions were deleted from the bill on the House floor. While the Committee bill includes several of these provisions, the Administration urges the Senate to restore the following sections of the bill (page and line numbers are from the House Committee print of the bill):

  • Title III: p. 22, lines 5-6.

  • Title VI: General Provisions
                  Sections: 625 and 626.

The Administration urges the Senate to delete certain Title VI General Provisions contained in the Committee- reported bill, which were deleted on the House Floor (section numbers are from the Senate Committee bill):

  • Sections: 610, 614, 617, 618, 620, 621, 626.

The Administration strongly objects to a provision that purports to condition the President's authority, and the authority of affected Executive Branch officials, to use funds otherwise appropriated by this bill on the approval of various committees of the House of Representatives and the Senate. This provision constitutes a legislative veto of the kind declared unconstitutional by the Supreme Court in INS v. Chadha. 462 U.S. 919 (1983). If this provision is not deleted, the U.S. Department of Justice would interpret it as having no force and effect, and make case-by-case determinations to determine whether the grant of authority in question is severable from the unconstitutional condition. See Alaska Airlines. Inc. v. Brock. 480 U.S. 678, 684-87 (1987).

The affected provision is:

  • Title I — p. 15, lines 19-24.
            (Senate Committee Print)

Department of the Treasury:

Treasury Department-Wide. The Committee bill would repeal the authority of the Secretary of the Treasury to transfer up to two percent of budget authority among Treasury accounts. This is an important provision that would provide the Department authority to make minor adjustments to cover unbudgeted, mandatory cost increases without the need for supplementary legislation. The Administration urges that the provision be restored.

Postage Costs. The Committee bill would restrict Treasury from directly billing agencies for postage costs. The language would greatly diminish the ability of the Secretary to exercise managerial discretion to ensure that Government payments, including Social Security benefit payments, Internal Revenue refund checks, and Other payments would not be in jeopardy.

Staffing Floors. The Committee bill would require a staffing floor of 4,119 FTEs for the Bureau of Alcohol, Tobacco and Firearms (ATF) and 17,411 FTEs for the Customs Service. These staffing floors reduce needed flexibility and the Administration urges the Senate to delete them. Similarly, the Administration objects to the earmarking of ATF funds for activities in support of the Federal Alcohol Administration Act. This would reduce the Bureau's flexibility in carrying out its mission.

Bureau of the Public Debt. The Administration opposes language in section 527 related to relocating employees. The language would unduly restrict the Executive Branch's ability to manage the Bureau's move to the Parkersburg, West Virginia facility. While the Administration supports the Committee's objective of assisting affected employees through a transition period, this can be accomplished most effectively by deleting the bill language and allowing the Department to plan how best to provide transition services.

General Services Administration:

Restrictions on Property. The Administration objects to sections 628 and 629, which would release reversionary interests in properties owned by the government in South Carolina and in California. In addition, the Administration objects to sections 6 and 7 of the General Services Administration General Provisions, which would prohibit the disposal of Federal properties in Arkansas. These sections are contrary to the Federal Property and Administrative Services Act of 1949, which provides for the orderly disposal of excess Federal property while protecting the government's and the taxpayer's interests.

Rent Prohibition. The Administration opposes section 10 of the General Services Administration General Provisions, which would allow the Bureau of Customs to avoid paying rent to GSA on newly constructed border stations by not moving into the facilities. These facilities were/are being constructed to improve Customs' border operations and Customs should occupy them as soon as they are available. GSA is entitled to receive rents on these facilities as soon as they are available for occupancy. Customs should not be permitted to choose not.to occupy these new facilities simply to save money.

Office of Personnel Management (OPM):

Section 515 of the Committee bill would prohibit OPM from closing or consolidating executive seminar centers. The Administration objects to this provision because it would prevent OPM from exercising its managerial discretion in deciding how best to use its training resources.

Section 518, although not objectionable, is unnecessary. Section 518 would grant OPM authority to provide special pay rates to Federal employees under certain circumstances. This provision should be deleted since it is redundant with authority enacted into statute (5 U.S.C. 5305) by the Federal Employees Pay Comparability Act of 1990 (P.L. 101-509, November 5, 1990).

Section 526 weald prohibit the use of funds to reduce the rank or rate of pay of a career appointee in the SES upon reassignment or transfer. The Administration objects to this provision because it would restrict flexibility in managing senior executive personnel effectively and efficiently.

Section 627 would attempt to amend title 5, United States Code but contains an incorrect reference. The intent of the provision is to amend the definition of "law enforcement officer." An amended definition that accomplishes the objective intended by section 627 is contained in legislation that was submitted to Congress on June 17, 1991, making technical changes to the Federal Employees Pay Comparability Act of 1990 (FEPCA). The Administration suggests that the Senate delete section 627 because its objective would be met by enactment of the technical change legislation already submitted.

Health Program Funding Floor. The Committee bill would require that OPM spend not less than $600,000 for Federal health promotion and disease prevention programs for Federal employees. While this is a worthy program, the mandated funding level is unwarranted. Funding this program beyond the level actually needed could result in funds being diverted from higher- priority functions.

Restrictions on the Office of Management and Budget's (OMB) Review Authority. The Administration continues to be concerned about various restrictions on OMB's authority to study and review certain areas.

The attached data tables can be downloaded in PDF format by clicking this link

Related PDFs

George Bush, Statement of Administration Policy: H.R. 2622 - Treasury Postal Service, and General Government Appropriations Bill, FY 1992 Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/330812

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