Statement of Administration Policy: H.R. 4539 - Treasury Postal Service, and General Government Appropriations Bill, FY 1995

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

This Statement of Administration Policy provides the Administration's views on H.R. 4539, the Treasury, Postal Service, and General Government Appropriations Bill, FY 1995, as reported by the Senate Appropriations Committee.

The Administration has several concerns with the Committee- reported bill, the most critical of which are discussed below.

Tax System Modernization

The Administration commends the Committee for increasing the funding for Tax System Modernization (TSM) from the level contained in the House-passed bill. However, the funding level established by the Committee is still substantially below the Administration's request. Modernizing the IRS is an Administration priority — it is critically important that we maintain an effective tax collection system. TSM enhancements are necessary to address major tax compliance issues, increase productivity, and improve service to taxpayers. The Administration urges the Senate to use any allocation that may be available and.to shift resources from lower-priority items in order to provide additional resources for TSM.

IRS Tax Compliance Initiative

The Administration commends the Committee for funding the $405 million IRS Tax Compliance initiative and urges the Senate to maintain this funding level. This initiative is expected to have deficit-reducing potential by generating additional revenue without raising taxes.

Law Enforcement Exclusion From Workforce Restructuring

The Administration strongly objects to the provisions of the bill that would exclude Department of Treasury law enforcement personnel from the Federal Workforce Restructuring Act of 1994. Enactment of this provision would bar the reduction of personnel levels over the next five years at a number of Treasury bureaus. This provision strikes at the core of the Act, which aims to reduce the Executive Branch by 272,900 full-time equivalent (FTE) employees.

At issue is the precedent this action would set for other departments and agencies. Granting an exemption to Treasury law enforcement personnel would spur supporters of other agencies to establish further exemptions. If such a trend were established, our commitment to reducing the size of government would be endangered, as would the promise to use the savings from the personnel reduction effort to fund the Violent Crime Control and Law Enforcement Act of 1994.

In addition, the Committee bill has added language setting FTE floors for the United States Customs Service; the Bureau of Alcohol, Tobacco and Firearms; Departmental Offices; and parts of the Internal Revenue Service. Taken together, these provisions seriously undermine Executive Branch capability to execute its management responsibilities. The Administration urges the Senate to eliminate these provisions.

Funding for NAFTA-related Initiatives

The Committee has not provided funding for the hiring of additional personnel for the enforcement of trade laws and regulations. This $18 million addition to the Bureau of Customs budget is vital to the support of commitments made to enhance NAFTA enforcement. This initiative remains a high Administration priority, and we urge the Senate to restore funding for this purpose.

FTS 2000

The Administration objects to Committee action that would eliminate language from the bill concerning the mandatory use of FTS 2000. The Administration supports the continued mandatory use of FTS 2000 as long as the program provides Federal agencies with long-distance service in the most cost-effective manner.

Federal Employee Pay Raise

The Administration commends the Committee for providing the President with the flexibility to use his alternative pay plan authority to establish the FY 1995 pay raise for Federal civilian employees.

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

Attachment

Attachment
(Senate Floor)

ADDITIONAL CONCERNS

H.R. 4539 — TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATIONS BILL, FY 1995

(AS REPORTED BY THE SENATE APPROPRIATIONS COMMITTEE)

The Administration looks forward to working with the Congress to address the following concerns as the appropriations process progresses.

Department of the Treasury:

Customs Air & Marine Interdiction Program Funding Level. The Administration is concerned about the increase in funding provided to the Customs Service air and marine interdiction programs. The level of funding proposed by the President and adopted by the House of Representatives is adequate to support the Administration's programs. The emphasis on counter-drug operations in host countries and marine interdiction efforts in the Caribbean area will maintain, with little diminution, the current program's deterrent value. The Administration urges the Senate to eliminate this funding increase.

Treasury Law Enforcement Funding. The Administration is concerned that the Committee has added $10 million to the President's request for Federal Law Enforcement Training Center construction and has deleted a proposal that would have produced $15 million in savings from the Treasury Forfeiture Fund. The Administration urges the Senate to eliminate these provisions.

Executive Office of the President:

National Security Council (NSC). The Administration is concerned that the Senate Committee proposes a transfer of the Information Security Oversight Office from the General Services Administration (GSA) to the NSC. The NSC advises the President on the integration of domestic, foreign, and military policies relating to national security, while the ISOO is primarily concerned with monitoring and oversight of Executive Branch administrative security programs. Transfer of the ISOO to the NSC is inconsistent with the President's prerogative to establish the organization of the White House staff. The Administration urges the Senate to eliminate this provision.

Other Independent Agencies:

Administrative Conference of the United States (ACUS). The Committee did not provide any funding for the Administrative Conference of the United States (ACUS). The Administration .urges the adoption of a possible amendment to restore $1.8 million in funding for ACUS. ACUS continues Do provide invaluable assistance in streamlining regulatory bureaucracy and improving the fairness of administrative procedures.

Advisory Commission on Intergovernmental Relations (ACIR). The Administration commends the Committee for providing $1 million for the ACIR. However, this funding level is below the President's $1.39 million request. Through its analysis of intergovernmental behavior and recommendations on how Federal, State, and local governments may together serve the public more effectively, ACIR continues to provide a valuable service. The Administration urges the Senate to fund ACIR at the level requested by the President.

John F. Kennedy Assassination Records Review Board. On May 16, 1994, the Administration submitted an amendment to the FY 1995 Budget requesting $2.4 million in funding for the newly established John F. Kennedy Assassination Records Review Board. The Committee has not provided funding for the Board. The Administration urges the Senate to support funding for the Board.

Other Concerns:

Government-wide General Provisions. The Administration is opposed to Section 613, which is a barrier to cross-agency collaborations in the pursuit of solutions to problems. The Administration also has concerns about Section 617, which addresses blue-collar pay raises, and Section 630, which addresses uses for sick leave, as currently drafted. The Administration will work with the Senate Do explore other options for addressing these issues.

The Administration is also concerned with Section 631, which protects special salary rates provided to uniformed Secret Service personnel from being offset by locality pay adjustments. Administration of special salary rates for uniformed Secret Service personnel should be consistent with the administration of the special salary program for all other Federal civilian personnel. The Administration urges the Senate to eliminate this provision.

Infringements on Executive Authority. There are several provisions in the Senate Committee bill that require Congressional approval before Executive Branch execution of aspects of the bill. The Administration will interpret such provisos to require notification only, since any other interpretation would contradict the Supreme Court ruling in INS vs. Chadha.