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Statement of Administration Policy: S. 3209 - Omnibus Reconciliation Act of 1990

October 17, 1990

STATEMENT OF ADMINISTRATION POLICY

(Senate Floor)

The Senate version of the omnibus Reconciliation Act of 1990 produces budgetary savings that are generally consistent with the Bipartisan Budget Summit Agreement. However, the President's senior advisors would recommend that the President veto the bill if it includes either of the following provisions.

  • Federal Aviation Administration (FAA) Reauthorization. Many of the provisions in the Senate bill that reauthorize the FAA are highly objectionable, in particular:

— A labor protection provision establishing fixed procedures and protections for resolving certain labor conflicts; resolution of these conflicts should be left to collective bargaining or other labor/manageaent negotiations.

— Provisions changing landing and take-off rights at three airports subject to the High Density Rule; these provisions would enormously disrupt domestic passenger air travel and would eliminate the use of market forces for the exchange of landing and take-off rights.

— Federally mandated actions on aviation noise would unduly interfere with local airport authority decisionmaking. This does not balance the widely varying interests of concerned groups.

Unless the version of the bill that is presented to the President for signature is amended to address these concerns, the President's senior advisors would recommend that the bill be vetoed.

  • OSHA and MSHA fines. The Senate bill raises the ceilings on most OSHA and MSHA fines, establishes floors for most fines, and makes certain safety and health violations of OSHA a criminal offense. While the Administration has agreed that some increase in OSHA and MSHA fines may be acceptable, it strongly objects to provisions that would include floors in the amount of fines that may be levied and would criminalise certain osha violations. if the floors on fines and the OSHA criminal provisions are included in the version of the bill that is submitted to the President for signature, the President's senior advisors would recommend that the bill be vetoed.

In addition, the Administration has serious concerns about several other provisions in the Senate bill, including but not limited to the following:

  • Rural Electrification Administration loans. The Administration supports the reconciliation package reported by the committee on Agriculture, including the provisions that would shift 35 percent of the direat loans currently provided by the REA to private loans with a Federal guarantee. However, the Administration is concerned about the provision that would provide for a 99 percent guarantee. A 90 percent guarantee would be more consistent with existing Federal practice and the goal of real deficit reduction.
  • Coast Guard User Fees. Although the Administration strongly supports collection of coast Guard user fees, it objects to the provision in the Senate bill that would only permit collections from vessels operating "where Coast Guard has a presence." Since there is no accepted legal definition of waters where Coast cuard has a presence, collections could be challenged in court. In addition, the language lades a specific schedule of fees for direct services, it would be preferable to include a schedule of fees in order to ensure that actual collection levels for 1991 match the levels specified in the Budget Resolution.
  • Federal Employee Health Benefits (FEHB) Savings. The Senate bill would apply Medicare payment limits for inpatient hospital services to retired FEHB enrollees age as and older who are not already covered by Medicare Part A. The Administration supports this proposal, but notes that savings arising from reduced payments to hospitals would not occur unless the legislation has an enforcement provision amending Title 18 of the social Security Act. Such a provision would require hospitals to adhere to Medicare payment limits for FEHB enrollees age 65 end older as a condition of the Hospital's participation in Medicare.
  • Reforms in Postal Cost of Living Adjustments (COLAs). The Senate bill does not include provisions that would require the Postal service to bear a larger share of the cost of colas provided to Postal retirees. Postal COLA reforms were included in the Bipartisan Budget Summit Agreement and adopted by the House. Continued taxpayer subsidies for these costs are inappropriate. They are legitimate operating expense of the Postal Service that should he covered by rates charged to Postal customers.
  • Moratorium on Emergency Assistance Regulations. These provisions would prohibit HHS from finalising any regulation which changes the emergency assistance program in 1991. One effect of this provision would be to allow New York City to go hack to putting homeless families with children in rundown welfare hotels. The 1991 cost of this provision is estimated at $35 million.
  • Tax Subsidy for Rail Pensions. This provision would transfer $180 million from the Treasury to the rail sector pension fund. Federal subsidies should not be used as a substitute for rail sector contributions to its own private Sector pension fund.
  • Disregard of Trust Contributions. The effect of this provision would be to create a "tax shelter" for Supplemental Security Income, allowing well-to-do individuals to avoid having their income and assets counted for eligibility for this means-tested program.
  • Medically-Needy Income Levels for Certain Member Families.This provision would expand Medicaid eligibility beyond current interpretation of the statute and regulation. The HCFA Actuary scores this provision as increasing spending by $700 million over five years.
  • Extension of Provision on Voluntary Contributions and Provider-Specific Taxes. Under this provision, States could levy hospital-specific taxes on Medicaid providers, and use the resulting revenues to satisfy the State match requirements under the Medicaid program. The HCFA Aotuary scores this provision as increasing spending by $1.7 billion over five years.
  • Uranium Enrichment. The Senate bill contains a $300 million authorization for a Uranium Mill Tailings Program. This authorization does not produce a change in outlays or revenues and thus is not appropriate for inclusion in a budget reconciliation measure.

Budget Process Reform Amendment. The Administration will continue to work with the Senate to make the language of the Senate amendment on budget process reforms more consistent with the Bipartisan Budget Summit Agreement.

George Bush, Statement of Administration Policy: S. 3209 - Omnibus Reconciliation Act of 1990 Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/329137

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