Statement of Administration Policy: H.R. 3230 - National Defense Authorization Act for Fiscal Year 1997

(House)
(Reps. Spence (R) SC and Dellums (D) CA)

The Administration supports prompt congressional consideration of its national defense authorization legislative proposal for FY 1997. As reported by the Committee on National Security, however, H.R. 3230 raises serious budget, policy, and management concerns. The President's senior advisers would recommend that he veto a final conference bill that fails to address the concerns set forth below.

Of particular concern, H.R. 3230 would: (1) authorize excessive Defense funding levels that are contrary to the President's budget priorities; (2) constrain the President's efforts to maintain a sound policy on ballistic missile defense and to implement important arms control treaties; (3) establish discriminatory and inequitable personnel policies; and (4) raise constitutional concerns.

Funding Levels

As proposed in the President's FY 1997 Budget, the Administration firmly believes that it is possible to maintain a strong defense without sacrificing important domestic programs. The Administration strongly objects to the approximately $12.5 billion in funding increases proposed in the reported version of H.R. 3230. Specifically, the House Committee's version of the bill would seriously undermine the President's goal of a balanced budget that provides for a strong defense, as well as other programs needed to provide all Americans with a higher standard of living.

About $8 billion of the increase in funding above the President's request is for procurement, in part for the acquisition of weapon systems and equipment that are not in the long range plans of the Department of Defense, including National Guard and Reserve Equipment; OH-58D, AH-64 and CH-47D helicopters; F-15E and F-16C/D fighter aircraft; WC-130 weather aircraft; and the Armored Combat Earthmover. Many of the proposed increases for R&D programs are also not needed, including $350 million to speed deployment of defenses against strategic missiles in anticipation of a threat that the intelligence community believes is not likely to materialize within the next 15 years. The additional $900 million for military construction programs also is objectionable because many projects are not in the Department's future construction plan.

Strategic Defense and Arms-Control

There are a number of provisions that would infringe upon the President's constitutional prerogatives. These include restrictions on implementing the ABM Treaty and a legislated standard for interpreting the ABM Treaty while the Administration is negotiating with Russia on this issue.

The bill would also preclude any agreement to "multilateralize" the ABM Treaty, i.e., allow all successor states to the Soviet Union to become signatories, without resort to the treaty making powers of the United States. The Administration is not attempting to amend the Treaty to admit new states, but is recording that several successor states to the former Soviet Union chose to participate. A restriction has not been applied to other treaties, such as the Conventional Forces in Europe (CFE) and the Intermediate-Range Nuclear Forces (INF) treaties, that were adjusted after ratification by the United States.

H.R. 3230 would also prohibit the Administration from retiring any strategic systems in FY 1997. This would prevent implementation of the START II Treaty which is expected to enter into force this year. If so, the current provision would conflict with the Senate resolution of ratification for START II, raise serious international legal issues, and endanger implementation of the major nuclear reductions which have been judged by the President and the Senate to be in the national security interest of the United States. In addition, this measure would require Defense to retain more B-52s than the Administration believes necessary even if START II does not enter into force this year.

H.R. 3230 supports but does not fully fund the Administration's Cooperative Threat Reduction (CTR) program — an important and highly effective means of enhancing security through eliminating foreign nuclear weapons systems and preventing weapons proliferation. The Administration strongly opposes amendments that would impose restrictions or certification requirements that would halt or delay the CTR program or further reduce funding for the program.

Personnel-Related Provisions

Homosexuals in the Military

The Administration strongly opposes the provision that would reverse the Administration's current policy regarding homosexuals in the armed forces, commonly known as "Don't Ask, Don't Tell". There is no compelling military rationale for reversing this Department of Defense policy.

Human Immunodeficiency Virus (HIV)

The Administration strongly opposes the provision which requires the involuntary separation of military personnel living with HIV. This provision is discriminatory to service members and their families, violates the equal protection component of the Fifth Amendment of the Constitution, serves no military purpose, is not medically required, and deprives the military services of trained and experienced personnel who can only be replaced at an increase in cost. Furthermore, for military personnel with less than 15 years of service, the bill would not grant these military members and their families access to Department of Defense medical services and other retirement benefits.

Phased Retirement

The Administration strongly opposes section 335 because it would allow Defense to re-employ, on a part-time basis, a limited number of retired employees and allow them to receive a partial annuity paid from the retirement trust fund. This would create inequities among civilian employees and set an undesirable government-wide precedent. In addition, by increasing the number of people retiring and reducing payments to the retirement fund, this provision would increase the deficit. Finally, current law allows for phased retirement; this provision would be inconsistent with existing Administration phased retirement initiatives.

Constitutional Concerns

Section 343 of the bill raises serious constitutional and administrative concerns by limiting the periodicals, audio or video recordings, or films, that may be sold in, or rented on, property under the control of the Secretary of Defense.

Other Objectionable Items

Micromanagement of the Department of Defense

The Administration opposes the Spence amendment regarding the White House Communications Agency. The amendment would limit funding to telecommunications support to the President and Vice President and other officials specified by the President.

H.R. 3230, through a host of onerous provisions, would undercut the Secretary's managerial authority and seek to micromanage Defense operational programs. Most significantly, the bill would terminate the Defense Business Operations Fund in FY 1998. The bill would also: (1) impose end strength floors on military technicians; (2) require the retention of employees at closing bases transferred to the National Guard; (3) require arbitrary civilian personnel reductions in the Office of the Secretary of Defense and the acquisition workforce; (4) reduce the Secretary's ability to manage the size of the military forces; (5) require the Department to procure the last 80 C-l 7 strategic airlift aircraft in 6 years rather than 7 years; (6) impose unnecessary restrictions on the new attack submarine; and (7) require procurement of only U.S. built ships, including an unrequested ship in FY 1997, for the Marine Corps' Maritime Prepositioning Squadrons.

The Administration opposes a portion of section 1211 of H.R. 3230, which adds a new chapter to title 10. The last sentence of section 10171(b) of this new chapter mandates the commander of the Army Reserve Command to report directly to the Chief of Staff of the Army. The Administration recommends that this sentence be deleted and the status quo maintained. The Secretary needs to retain maximum flexibility to manage the Department of Defense.

Information Technology Management Reform Act

H.R. 3230 would amend the Information Technology Management Reform Act of 1996 (ITMRA) to exclude systems which process classified information from inter-agency assistance and the use of standards (for other than security). This exemption was considered during ITMRA's development. It was not accepted because it would isolate classified systems from other systems (for other than security reasons), lead to costlier systems, and decrease reliance on commercial products.

Privatization

H.R. 3230 does not include various provisions proposed by the Administration to enhance Defense's efforts to improve program efficiency through privatization. The Administration urges the Congress to adopt these provisions.

Department of Energy (DOE) Programs

The bill would eliminate DOE's funding for vital international nuclear safety programs, unduly restrict the discretion of DOE's laboratory directors to conduct vital basic research (by reducing laboratory directed research and development funds), and hamper management of the Department.

The bill would authorize $165 million more than the President's FY 1997 Budget, while eliminating funds for certain international nuclear programs, including funds to prevent additional Russian production of weapons grade plutonium. Sections 3151 through 3157, and section 3138 would dramatically restructure the relationship between DOE headquarters and its field offices in an unworkable manner. These changes would not streamline DOE's operations and would increase overall costs. Section 3133 anticipates the outcome of an ongoing Environmental Impact Statement. Funds for headquarters direction of Environmental Management programs would be reduced by an unwarranted 60 percent.

The Administration, as it continues its review of the bill, may identify other issues, and will work with the Congress to address these concerns and to develop a more acceptable bill.

The Administration appreciates the Committee's support for the military pay raise and quality of life initiatives designed to improve military compensation and living conditions. The Administration also appreciates the Committee's support for the Joint United States/Israeli Nautilus Laser program, which is designed to shoot down short range projectiles such as Katyusha rockets.

Pay-As-You-Go Scoring

H.R. 3230 would affect direct spending; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990. OMB's preliminary scoring estimates for this bill are presented in the table below.

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