Statement of Administration Policy: H.R. 5162 - Energy and Water Development Appropriations, 1987

(House)
(Sponsor: Whitten (D) Mississippi)

The Administration strongly objects to several provisions in this bill and considers it unacceptable in its current form.

As compared with the President's budget, funds for Atomic Defense are cut by $536 million, and funds for domestic programs are increased by $316 million.

The Administration has three major concerns.

First, vis a vis the President's budget, the bill increases domestic spending at the sacrifice of programs important to national defense.

Second, the current economic climate implies that it will be difficult to meet the Gramm-Rudman-Hollings targets (and therefore avoid sequestration) even meeting the President's February budget and the Congressional Budget Resolution. It makes no sense to decrease spending on national defense but turn around and increase spending on domestic programs.

Third, the Administration strongly objects to the particular uses of these increased funds for domestic projects; for example:

• An extra $156 million for the Corps of Engineers, including 14 new construction starts not requested by the Administration;
• Some $105 million for continued funding for the Appalachian Regional Commission (ARC), proposed for termination by the Administration; and
• Over $42 million for the Tennessee Valley Authority, mainly for local economic development activities that are a state and local responsibility.

The Administration also objects to the Committee's earmarking $53.2 million for a variety of special interest pork barrel projects in Energy supply and R&D activities.

Among the language provisions, the Administration particularly objects to Section 503, which directs that savings and slippage be applied in the same proportion to all projects. This would threaten seriously the objective of flexible and efficient management of construction and maintenance programs.