Statement of Administration Policy: H.R. 2707 - Labor, Health and Human Services, Education, and Related Agencies Appropriations Bill, FY 1992

(House Floor)
(Sponsors: Whitten (D), Mississippi; Natcher (D), Kentucky)

This Statement of Administration Policy expresses the Administration's views on the Labor, Health and Human Services, Education, and Related Agencies Appropriations Bill, FY 1992, as reported by the Committee.

The Committee has adopted an amendment that would permit the use of funds provided in this bill for counseling on abortion. The effect of this amendment would be to weaken substantially existing regulations for abortion-related activities. The President stated in a letter to Speaker Foley on June 4th that he would veto any legislation that weakens current law or existing regulations for abortion-related activities. Therefore, the President would veto this bill if it were adopted as presently written.

The Committee has attempted to create a contingent appropriation to provide additional funds for administration of the unemployment insurance (UI) system. In fact, however, the language operates to provide additional funds without further action by the Congress or the President, thereby making them a mandatory expenditure. Language of the Committee bill would provide an additional $30 million for every 100,000 increase in the average weekly insured unemployment (AWIU) projected by the Department of Labor over the 3.24 million AWIU level assumed in the President's FY 1992 Budget request.

Changing a portion of the discretionary unemployment insurance account — the account that finances the costs of administering the unemployment insurance program — to mandatory is a change In classification and a fundamental change to the Budget Enforcement Act (BEA). This language can be changed to avoid such a reclassification, and the Administration is anxious to work with the Appropriations Committee to resolve this issue. However, if the current language is adopted, the President's senior advisers would recommend that he veto the bill for this reason alone.

The President requested $2.3 billion for UI administrative costs. If actual unemployment is significantly higher than estimated in the FY 1992 Budget, a recalculation of necessary UI administrative costs would be appropriate. The Administration has indicated that to the extent that changed real growth and unemployment forecasts cause unexpected UI administrative cost increases, the amount by which any revised estimates exceed the budget request would be designated as an "emergency" and thus be exempt from the BEA spending limits. As a result, no new contingency fund is necessary or appropriate, and any redesignation of discretionary spending to mandatory spending is unjustified.

The Administration objects to the Committee's inclusion of a $600 million "Energy Emergency Assistance Fund" for the Low Income Home Energy Assistance Program (LIHEAP). The Committee's base funding level of $1.0 billion is generally consistent with the President's request of $1,025 billion. The budget request for a $100 million contingency appropriation, however, is based on specific market criteria, Including a 20-percent increase in oil prices. In contrast, the Committee's "Energy Emergency Assistance Fund" is specifically designed to circumvent the discipline of the domestic discretionary spending limits established by the BEA. Under the Committee's proposal, 1) the $600 million would become available if the President submitted a request designating the funding as an emergency; and 2) the resulting funding would be considered to be over and above the spending limits mandated by the BEA.

It is the Administration's position that annual appropriations for programs such as LIHEAP, the requirements for which can be — and have been for many years — reasonably estimated in advance, should not be designated as an "emergency." Therefore, the Office of Management and Budget would not recommend to the President that he designate any of these funds as an "emergency." If the Congress' priorities include higher spending for LIHEAP, then the Administration believes that the Congress should enact a larger regular appropriation, with offsetting reductions in other programs.

On the basis of OMB's initial scoring, the Committee bill exceeds the House 602(b) allocation for domestic discretionary budget authority by $156 million and the domestic discretionary outlay allocation by $602 million. This is in large part due to the Committee's excessive funding of contingencies. The $257 million level of funding recommended by the Committee for the Health Care Financing Administration's (HCFA's) contractor account greatly exceeds any previous contingency fund level. The FY 1992 Budget requested a $100 million contingency. Further, language of the Committee bill would provide for release of the contingency funds for "unanticipated costs," instead of for "unanticipated workloads," the requested language, thereby greatly increasing the likelihood that these funds may be utilized.

The Committee has funded only $69 million of the requested $139 million for the Healthy Start Initiative. This initiative targets funds for high risk infant mortality areas and is a high priority of the Administration. The reduced level of funding provided by the Committee bill would severely limit the Department's ability to address this public health crisis. The House is urged to fund fully the Healthy Start Initiative.

The Administration appreciates the willingness of the Committee to reserve $250 million for the AMERICA 2000 initiative, which is pending authorization. However, $690 million is required for this strategy, of which $46.5 million requires no new authorizing legislation. It is the Administration's view that the full requested amount should be included in this bill to ensure the successful implementation of the AMERICA 2000 strategy. All elements of the AMERICA 2000 program are essential to the States' efforts to reform education.

The Committee bill would provide $54.4 million less than the President's request for research, statistics, and improvement activities within the Department of Education. The President has requested $27.5 million in additional funds to support important research and data collection activities that would help States and localities to improve educational performance and achieve the National Education Goals. These activities are vital to successful education reforms. The House is urged to restore funding to the requested level.

The Committee bill would not provide any of the increases requested in the FY 1992 Budget for drug treatment and prevention programs of the Alcohol, Drug Abuse, and Mental Health Administration. Further, the bill would not provide any of the $68 million requested for grants to increase drug abuse treatment capacity. The Administration urges the House to provide funds for these high priority programs at the levels requested in the Budget in anticipation of enactment of authorizing legislation.

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

Attachment

(House Floor)

ADDITIONAL CONCERNS
H.R. 2707 — DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1992

MAJOR PROVISIONS OPPOSED BY THE ADMINISTRATION

A. Funding Levels

Department of Health and Human Services:

Interim Assistance to States for Legalization. The Committee bill would use up $242 million of the FY 1993 discretionary outlay spending limit by moving FY 1992 Interim assistance to States for legalization (SLIAG) outlays a few months into FY 1993. The Administration proposed permanently rescinding these funds to free up resources for higher priority spending in FY 1992 and subsequent years. The Committee, in electing not to make real reductions in resources for this activity, has, instead, shifted the outlay burden into the future. The Administration continues to believe that rescission of these funds is appropriate.

Health Resources and Services Administration (HRSA) — Health Professions Training. The Administration is pleased that the Committee has met the FY 1992 President's request for high-priority health professions training programs that assist disadvantaged and minority students in pursuing a health professions education. However, the Administration continues to object to the funding of numerous low-priority categorical grants, most of which provide medical and allied health school curriculum assistance. The Committee has provided approximately $300 million for categorical health professions training programs, many of which are untargeted and outdated grants. After two decades of heavy Federal support, the aggregate shortage of health professionals has abated. The Administration believes that this money would be far better spent in broad-based student aid programs for low income students — such as Pell Grants — than for these special interest grants. There is no justification for providing special assistance only to these selected institutions and professions.

National Institutes of Health (NIH) — Biomedical Research. The Administration commends the Committee for placing a high priority on biomedical research, consistent with the President's FY 1992 Budget. However, the Administration observes that after NIH were to absorb its portion of the HHS-wide reduction of $124 million in funding for salaries and expenses recommended by the Committee, the net funding level for NIH may fall below the President's request. This could delay the advances in biomedical research sought in the FY 1992 Budget.

NIH — One-Percent Transfer Authority. The Administration is concerned about the Committee's deletion of authority for the Director of NIH to direct up to one percent of the NIH appropriation to important research opportunities as they emerge. This important authority is needed so that the NIH Director may adjust resource allocations as public health challenges arise.

NIH — Human Genome. The Administration regrets that the Committee has allocated only $93 million to the human genome project, instead of the $110 million requested in the FY 1992 Budget, and urges the House to restore funding to the requested level.

Department of Education:

Vocational Education. The Committee bill would provide $366.7 million above the President's request for vocational education. The Administration believes that such an increase is inappropriate at this time. The Committee report accompanying the bill directs the largest increases to programs that were either added or substantially revised by the recent Vocational Education reauthorization. Implementation of these programs is just beginning. It is the Administration's view that an increase in funding should not be considered until there is evidence on which to evaluate the implementation of the new provisions.

Head Start. The Committee bill would provide an increase of $250 million over the FY 1991 enacted level of $1,952 million through e transfer of funds from the Department of Education to the Department of Health and Human Services. The Administration believes that all funding for Head Start should be provided through appropriations to the Department of Health and Human Services.

School Improvement Program. The Administration objects to the Committee's failure to adopt the President's proposal to consolidate the Education for Homeless Children and Youth program into a consolidated authority to be administered by the Department of Housing and Urban Development. The President's proposal would provide unified funding to support comprehensive innovative programs to meet long-term needs of the homeless. Instead, the Committee has retained the highly compartmentalized structure of current law and has provided $37 million, an increase of $29.7 million over the FY 1991 funding level, for this program.

In addition, the Committee has provided $20.8 million over the President's request for the Dropout Prevention Demonstration. The Committee has inappropriately provided funding for this program as if it were a regular grant program. The additional money is not required to complete the current round of demonstrations; another set of Federally-funded projects is not needed. Evaluation of the current demonstration projects will provide information needed to guide and improve the many dropout prevention programs already being funded through non- Federal sources.

Howard University. The Committee bill would provide $23.6 million more than requested for "emergency construction," providing 100-percent financing for the repair of Howard's electrical and water systems and for the repair and replacement of Howard's data processing systems. The President's request contains no construction funding, on the grounds that it is inappropriate for the Federal Government to assume responsibility for maintaining the physical plant of the University.

Education Research. Statistics, and Improvement. The Committee report accompanying the bill recommends that the Department of Education create an Office of Educational Technology and earmarks $8 million to initiate a single, model High Tech Demonstration Program, to be awarded to one local educational agency. This is substantial funding for a single project. The Department is heavily engaged in a variety of projects to explore high technology, and it would be highly inappropriate to invest this much money in any one project at this time.

Department of Labor:

Training and Employment Services — Title III of the Job Training Partnership Act. The Committee has added $50 million for the Clean Air transition assistance program to the President's FY 1992 request of $527 million for the Economic Dislocation and Worker Adjustment Assistance (EDWAA) program, authorized in title III of the Job Training Partnership Act. The Administration's request includes $50 million for Clean Air transition assistance within the $527 million total requested. Nearly 295,000 dislocated workers would be served under the Administration's EDWAA request, representing about 55 percent of the annual average number of prime-age, experienced dislocated workers reported in surveys conducted by the Bureau of Labor Statistics. This participation rate compares favorably with participation rates reported in evaluations of several Labor Department worker readjustment demonstration projects. Moreover, the Administration request takes into account the $150 million provided in FY 1991 for three years to finance worker adjustment assistance programs authorized by the Defense Conversion Adjustment program.

Training and Employment Services — Job Corps. The Committee has added $31 million to the Administration's $867 million request for new budget authority for the Job Corps in FY 1992. The Committee has denied the budget request for a $20 million reappropriation of FY 1989 capital funds earmarked for program expansion. Instead, the Committee bill would provide an unrequested $20 million to replace the proposed reappropriation, another $11 million in additional funding, and would extend by one year the time over which the FY 1989 capital funds may be spent. In report language, the Committee directs the Administration to use the $20 million to carry out the six-center expansion program in an "expeditious manner."

The Administration firmly believes that the Committee's priorities for the Job Corps program are misdirected. The FY 1992 Budget calls for halting any expansion beyond the two new centers opening in program year 1991. Diverting limited resources to finance program expansion could hurt program outcomes at existing centers. In addition, expanding the program by four additional centers would require substantial additional appropriations for capital costs, and would boost operations costs by about $20 million annually.

State Unemployment Insurance and Employment Services Operation (SUIESO) — Employment Service. The Committee has provided $55 million in additional funds for allotments to States to operate local Employment Service offices and an additional $12 million for automation of State activities, the latter amount made unavailable for obligation until after September 30, 1992. This amounts to $67 million above the President's request. In the Administration's view, there are higher priority uses of these funds, and the House is urged to finance the Employment Service at the requested level.

Chief Financial Officers Act of 1990. The Administration supports full implementation of the Chief Financial Officers Act of 1990, and the President requested funding for this Act for each of the affected Cabinet agencies. Funding for implementation of the CFOs Act was not provided by the Committee for the Departments of Labor, Health and Human Services, and Education. The Administration strongly urges restoration of this funding to carry out implementation of the CFOs Act.

B. Language Provisions

Department of Labor:

Job Corps. The Committee bill includes language in sections 103 and 104 of the General Provisions that would prohibit the use of funds to contract cut operations of Job Corps' Civilian Conservation centers with a non-governmental entity (section 103) and that would restrict the use of Job Corps funds for paying legal expenses in criminal cases (section 104). These provisions would limit the Administration's flexibility to manage the Job Corps program efficiently.

Occupational Safety and Health Administration (OSHA). The Administration objects to the inclusion of restrictive provisions in OSHA's appropriations language concerning reporting requirements related to small farms; recreational hunting, shooting or fishing; and small firms. These restrictions would limit the agency's flexibility to focus inspection resources on workplaces with the poorest safety records. In addition, the change in the reporting instruction that would require employers to report employment accidents that result in the hospitalization of one or more employees is objectionable. OSHA would be required to investigate an increased number of accidents, placing an additional burden on the agency's already scarce resources.

Mine Safety and Health Administration (MSHA). The Administration objects to the inclusion of appropriations language that would exclude sand, surface limestone, and similar mine operations from coverage under section 115 of the Mine Act. The hazards faced by these mining operations are no less serious than the hazards faced in other mining operations. Statistics show that these mines are no safer than other metal and non-metal mines.

Department of Health and Human Services:

Health Education Assistance Loans Program (HEAL). The Administration commends the Committee for recognizing the problem of increasing default expenditures for the HEAL program, and agrees that this cannot and should not continue. The Administration is pleased that the Committee has again placed a limitation on HEAL annual obligational authority and, further, urges the House to adopt an annual limit on HEAL obligational authority of $185 million rather than $260 million as proposed by the Committee. Given the Government's total liability from the nearly $2.6 billion in HEAL loans already outstanding and the high levels of default rates among some categories of schools, the program warrants complete restructuring. The Administration is working with the authorizing committees to improve the targeting and effectiveness of the HEAL Program.

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