November 6, 1998
The Speaker of the
House of Representatives
November 6, 1998
The White House
Submitted for your consideration are requests to transfer $891 million from the contingent emergency fund for Year 2000 (Y2K) compliance to 18 Federal agencies.
These transfers will support a range of activities to ensure that important computer systems will operate smoothly through the year 2000 and beyond. Emergency funding would be allocated both for activities that were included in your FY 1999 Budget but were not funded in the FY 1999 appropriations process (based on the assumption that funds would be allocated from this fund), and for critical Y2K requirements that have been identified since the FY 1999 Budget was transmitted. Federal agencies would use this funding for additional remediation for information technology systems, testing to ensure that systems are Y2K compliant, replacement of embedded computer chips, creation and verification of continuity of operations and contingency plans, and outreach to non-Federal entities by agencies in support of the Year 2000 Conversion Council.
Your FY 1999 Budget anticipated that Y2K requirements would emerge over the course of the year and included an allowance to provide flexible funding to address emerging needs. As you requested, P.L. 105-277, the FY 1999 Omnibus Consolidated and Emergency Supplemental Appropriations Act, provided contingent emergency funding for Y2K computer conversion activities -- $1.1 billion for defense-related activities and $2.25 billion for non-defense activities. The enclosed requests for transfers are for non-defense agencies; therefore, the funds would be transferred from the Information Technology Systems and Related Expenses account established by P.L. 105-277.
OMB continues its oversight of Federal agency progress toward fixing the Y2K problem. We are working to ensure that Federal agencies have sufficient FY 1999 resources to address Y2K and that flexible contingent emergency funding remains available to address emerging needs. Pursuant to the requirements of Public Law 105-277, OMB will prepare and submit reports to Congress on the proposed allocation and plan for each affected agency to achieve year 2000 compliance for technology information systems before funds can be released to the agency. The report for agencies represented in this first release of Y2K contingent emergency funds will be transmitted to the congressional committees specified in P.L. 105-277 concurrent with this request for release of the funds. In addition, each agency will provide detailed justification material to these committees and the relevant appropriations subcommittees.
I recommend that you designate the amounts listed on the enclosure as emergency requirements in accordance with section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. No further congressional action will be required.
I have carefully reviewed these proposals and am satisfied that they are necessary at this time. Therefore, I join the heads of the affected Departments and agencies in recommending that you make the requested funds available by signing the enclosed letter to the Speaker of the House of Representatives.
OMB will continue to monitor agency requirements and will address additional funding needs as they emerge.
November 6, 1998
Dear Mr. Chairman:
In accordance with provisions of Public Law 105-277, the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999, I am transmitting a proposed allocation and plan for the following agencies to achieve Year 2000 (Y2K) compliance for technology information systems:
Department of Energy
Department of Health and Human Services
Department of the Interior
Department of Justice
Department of Labor
Department of State
Department of the Treasury
Other Defense -- Civil Programs, Selective Service System
Executive Office of the President -- Office of Administration
Executive Office of the President -- Office of the United States Trade Representative
General Services Administration
Corporation for National and Community Service
Federal Communications Commission
Federal Trade Commission
Securities and Exchange Commission
United States Holocaust Memorial Council
United States Information Agency
In monitoring Federal agency progress towards Y2K compliance, OMB directed agencies to estimate the total FY 1999 resources necessary for Y2K compliance and related expenses. Now that the FY 1999 appropriations process has been completed, OMB has worked with the agencies to determine whether the resource requirements associated with Y2K can be accommodated within appropriated levels, or whether contingent emergency funds should be allocated. For the agencies listed above, the allocation of contingent emergency funds required at this time are displayed on the enclosed table. In addition, these agencies will provide detailed justification material for these requirements to the committees specified in Public Law 105-277, as well as the relevant appropriations subcommittees, concurrent with the transmittal of this letter. OMB will continue to monitor agency requirements and will address additional funding needs as they emerge.
OMB's strategy to ensure agency Y2K compliance is predicated on agency accountability. We have systematically monitored agency progress through agency goals for: compliance of mission critical systems, progress on the status of mission critical systems, status of mission critical systems being repaired, and agency Y2K cost estimates.
These performance measures have proved useful in ensuring agency accountability without diverting vital resources from Y2K compliance activities to reporting requirements. Provided with this package is OMB's most recent Y2K Quarterly Report to the House and Senate Appropriations Committees, which includes an assessment of these performance measures. Our next quarterly report will be forwarded to Congress in December. In assessing agency progress towards compliance, OMB has focused on the four measures described above. The report also details other initiatives -- such as the Year 2000 Information Disclosure Act -- that are part of the Administration's overall plan for achieving Y2K compliance.
For most of the agencies listed in this transmittal, the following constitutes the agency plan required by Public Law 105-277:
For several small, independent agencies included in this transmittal -- Selective Service System, Corporation for National and Community Service, Federal Trade Commission, Securities and Exchange Commission, United States Holocaust Memorial Council, and the United States Information Agency -- the justification materials provided serves as the agency plan. OMB has been monitoring the progress of these small agencies, and will ask them to report back on their status early next year.
We look forward to working with you to ensure a smooth transition on January 1, 2000.
Identical Letter Sent To:
The Honorable David R. Obey
The Honorable Ted Stevens
The Honorable Robert C. Byrd
The Honorable Robert F. Bennett
The Honorable Christopher J. Dodd
The Honorable F. James Sensenbrenner, Jr.
The Honorable George E. Brown, Jr.
The Honorable Dan Burton
The Honorable Henry A. Waxman