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Administration strongly supports this bill's efforts to provide fee
relief to the Nation's growing number of investors and urges the House
to pass the fee reduction provisions of H.R. 1088, which are very
similar to those of its companion legislation in the Senate. Currently,
fees are collected far in excess of the Securities and Exchange Commission's
budget, acting as a burden on investors and discouraging investment.
The bill would return those excess fees to market participants while
ensuring that the Commission continues to be funded at a level that
will allow it to effectively fulfill its mission. This legislation
fits into the responsible budget framework agreed to by the President
and Congress.
While
the Administration supports fee relief for investors, the Administration
opposes the inclusion of the pay parity provisions in this bill.
The Administration is concerned with the ability of all Federal
agencies to attract and retain qualified employees for highly-skilled
positions. The Administration plans to systematically address a
broad range of human resource practices to improve Federal employment
opportunities and reduce existing disincentives to seeking Federal
employment. Pay is only one component to be considered among several
factors. The Administration has concerns with any legislation that
would exempt individual agencies from all or part of title 5 of
the U.S. Code, adversely affecting the portability of Federal employees
and fragmenting personnel systems. The Administration believes its
comprehensive approach to Federal workforce issues will ultimately
be a greater benefit to all agencies.
Pay-As-You-Go
Scoring
Any
law that would reduce receipts is subject to the pay-as-you-go requirements
of the Balanced Budget and Emergency Deficit Control Act. Accordingly,
H.R. 1088 or any substitute amendment in lieu thereof, that would
also reduce revenues, will be subject to the pay-as-you-go requirement.
OMB's preliminary scoring estimates indicate that the bill would
result in a net loss of receipts of $1.3 billion in FY 2002 and
a total of $8.2 billion during FYs 2002-2006. The Administration
will work with Congress to ensure that any unintended sequester
of spending does not occur under current law or the enactment of
any other proposals that meet the President's objectives to reduce
the debt, fund priority initiatives, and grant tax relief to all
income tax paying Americans.
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