Statement of Administration Policy: H.R. 2699 - District of Columbia Appropriations Bill, FY 1992

(Senate Floor)
(Sponsors: Byrd (D), West Virginia; Adams (D), Washington)

The purpose of this Statement of Administration Policy is to express the Administration's views on the District of Columbia Appropriations Bill, FY 1992, as reported by the Committee.

The Administration urges the Senate to adopt language concerning abortion that was included in the District of Columbia Appropriations Acts for FY 1989, FY 1990, and FY 1991. The language of these Acts prohibited the use of Federal and local funds to perform abortions, except where the life of the mother would be endangered if the fetus were carried to term. The President will veto any District of Columbia Appropriations Bill that does not contain this language. Section 114 of the Committee approved bill would permit the use of Congressionally appropriated local funds to finance abortions and, therefore, would lead to a veto of the bill.

The Administration opposes provisions in the Committee bill that would provide $55.8 million in advance appropriations for private hospitals in the District of Columbia. Advance appropriations undermine future discretion, for both the congress and the President, in the distribution of budgetary resources.

On the basis of OMB's initial scoring, the Administration finds that the Committee's bill is within the Senate 602(b) allocation for FY 1992 budget authority and outlays for the Federal payment to the District. In aggregate, the Senate 602(b) allocations are consistent with the statutory spending limits enacted in the Budget Enforcement Act.

Additional Administration concerns with the bill as reported by the committee are discussed in the attachment.

Attachment

July 18, 1991
(Senate Floor)

ADDITIONAL CONCERNS
H.R. 2699 — DISTRICT OF COLOMBIA APPROPRIATIONS BILL, FY 1992

MAJOR PROVISIONS OPPOSED BY THE ADMINISTRATION

A. Funding Levels

The Administration opposes the Committee's addition of Federal tax dollars for purposes that are clearly a local responsibility. In addition to micro-managing the District government by earmarking payments to individual District programs, the bill would provide almost $70 million of Federal funds ($55.8 million in advance appropriations) to privately owned hospitals. Funding privately owned hospitals would set a bad national precedent and would favor local D.C. hospitals over other hospitals with similar or greater needs.

George Washington Hospital. As part of the $70 million discussed above, the Committee would provide $50 million for the construction and renovation of the George Washington University Medical Center. Of this amount, $250 thousand would be provided in FY 1992, and $49.8 million in advance appropriations would be provided for FYs 1993-95. This funding is contrary to the proposed capital payment policy regulations, which state that the Federal government should only pay for capital projects that are directly attributable to Federal Medicare patient loads.

Trauma Care Fund. Establishment of this $10 million fund to offset the uncompensated cost for providing emergency trauma care is unnecessary. Through the Medicare and Medicaid programs, the Federal government already provides qualifying hospitals with funds for both charity and bad debt. Payments to local D.C. hospitals through this proposed Trauma Care Fund could produce double payments and/or complicate the Federal payment process. The establishment of a 35-percent funding cap for an individual hospital would not ensure that all local hospitals would share equally in caring for non-paying patients. Directing the District to administer this fund could cause the City to divert scarce resources from other more critical needs.

In addition, the Administration opposes the proposed delay in obligation of these funds until the last day of FY 1992 and the direction that the funds not be spent until FY 1993. This delay is especially objectionable because the Committee would further direct the financially-strapped District Government to negotiate a private loan — secured by this appropriation — to activate this fund immediately.

Children's National Medical Center. The Committee bill would provide $3.0 million in FY 1992 and an advance appropriation of $6.0 million for FY 1993 for a cost- shared National Child Protection Center. The Administration is opposed to the establishment of small categorical programs to finance activities supported through existing block grants and the peer-reviewed research funding system.

Earmarked Payments to Individual District Agencies. The Committee bill would earmark $4.2 million in Federal tax dollars for purposes that are clearly a local responsibility. It is the Administration's view that if Congress wants to make these funds available, they should be included as part of the fungible Federal payment.

B. Language Provisions

The Administration continues to support legislation that would require Federal agencies to pay the District directly for water and sewer services. Requiring the Department of the Treasury to continue to act as a conduit for funneling payments to the District is an administrative burden and expense to Treasury and contributes nothing to the payment process. In addition, the District reaps a windfall benefit because water and sewer rates charged to the Federal government include the cost of direct billing services that are not being provided.