This
Statement of Administration Policy provides the Administration's views
on the Veterans, Housing and Urban Development, and Independent Agencies
Appropriations Bill, FY 2002, as approved by the House Committee.
The
Administration appreciates the Committee's efforts to fund programs
at the President's request. In particular, the Administration commends
the Committee for fully funding the President's request for the
President's National Science Foundation Math and Science Partnerships
initiative to strengthen elementary and secondary mathematics and
science education. We especially appreciate the Committee's support
of the Administration's efforts to consolidate duplicative programs
by terminating the Department of Housing and Urban Development's
Public Housing Drug Elimination Program and by ensuring that unobligated
balances in the Public Housing Capital Fund are targeted to high-performing
housing authorities. We are also pleased that the Committee expands
opportunities for affordable homeownership by funding the Down Payment
Assistance Initiative in HOME and the Federal Housing Administration
(FHA) insurance of hybrid adjustable-rate mortgages and that the
Committee provides the $197 million requested for 34,000 incremental
vouchers to aid additional low-income families.
The
Committee's decision to support the President's initiative to improve
the quality and timeliness of veterans' disability claims processing
addresses an important aspect of assisting the men and women who
have served in our Nation's armed services. The Administration also
appreciates the Committee's support of Administration initiatives
to improve State enforcement and environmental data collection activities.
The
Administration supports passage of the bill and appreciates that
the Committee has funded these agencies and programs within the
levels agreed to under the budget resolution. We would like to take
this opportunity to share some concerns with the Committee's version
of the bill.
Housing
and Urban Development (HUD)
The
Administration is concerned that the Committee chose not to fund
the President's Community Technology Centers and the Improving Access
initiatives. These initiatives would address the education and training
needs of low-income individuals and enhance the ability of individuals
with disabilities to participate in civic and community organizations.
The Administration urges the Congress to provide the funding requested
for these initiatives. Further, the Administration strongly opposes
the use of advance appropriations in the Housing Certificate Fund
to avoid spending limitations. There is no programmatic justification
for an advance appropriation in this account, and we urge the Committee
to fully fund this program through FY 2002 appropriations.
Veterans
Affairs (VA)
While
the Administration appreciates the Committee's support of improved
benefits and services to our Nation's veterans, funding provided
by the Committee currently exceeds the requested level. We look
forward to working with Congress to fund mutual priorities within
the 302(b) allocations. The Administration is concerned that the
Committee did not include language to eliminate vendee loans. Elimination
of support for this non-veteran program could provide up to $227
million over 10 years for other VA priorities. In addition, we urge
the Congress to reconsider inclusion of the requested language that
would ensure sufficient funding for the payment of veterans entitlements
by eliminating the annual need for mandatory supplemental requests.
Environmental
Protection Agency (EPA)
The
Administration is disappointed that the Committee has not funded
the newly-authorized sewer overflow control grant program that would
address the nation's largest remaining municipal wastewater problem.
The Administration urges the House to restore funding for this program
by eliminating the $200 million earmarked for an unauthorized, poorly-targeted
water infrastructure grant program. The Administration also urges
deletion of legislative provisions in the Committee version of the
bill that block two pesticide user fees, which would provide $60
million in outlay offsets to restore Presidential priorities.
Federal
Emergency Management Agency (FEMA)
The
Administration appreciates Congress' attentiveness to the needs
of FEMA, and the intent of the $1.3 billion contingent emergency
appropriation added for FEMA's disaster relief program in Committee.
The Administration is also pleased that the House, unlike the Senate,
has funded the base appropriation for FEMA at the President's request
of $1.369 billion. The Administration is not, however, prepared
to commit to a specific level of contingent emergency appropriations
at this time. The Administration is also seriously concerned with
the manner in which the Senate version of the bill uses the emergency
designation to provide more resources for FEMA above the Committee's
allocation.
Given
the uncertain costs of responding to emergencies and natural disasters,
the Administration's budget plan for FY 2002 was meant to accomplish
three important objectives: (1) provide a reasonably adequate base
of funding for FEMA; (2) plan for additional unforeseen emergencies
and natural disasters in a comprehensive manner; and, (3) adhere
to budget discipline. The Administration is disappointed that Congress
did not agree to establish a National Emergency Reserve as part
of the FY 2002 budget resolution. The Administration continues to
believe that the annual budget should anticipate some level of emergency
response to natural disasters. Such a reserve would be useful in
stemming abuses of the emergency designation provisions of the Budget
Enforcement Act (BEA).
In
the absence of such a reserve, the Administration will only allocate
spending contained in appropriations bills, designated as an emergency,
if the requirement is a necessary expenditure that is sudden, urgent,
unforeseen, and not permanent. The Administration will also recommend
the use of an emergency designation only to the extent that adequate
base funding for a normal year has been provided for the applicable
program. The classification of particular spending as an emergency
requirement depends on common sense judgment, made on a case-by-case
basis, about whether the needs can be absorbed within the existing
level of resources available.
In
sum, the Administration will only consider contingent emergency
funding if that funding meets the definition of an emergency and
is for a program for which adequate base funding has already been
provided. The House bill has met both of these requirements. In
contrast, the Senate has not funded the base disaster relief program
before providing emergency funding.
While
the Administration cannot support a specific level of contingent
emergency appropriations at this time, the Administration would
support the use of a contingent emergency designation for the reasons
noted above. The Office of Management and Budget will continue to
work closely with FEMA to determine the actual level of need required
to meet all of the FY 2002 obligations before the bill reaches the
President's desk. Based on this assessment, the Administration would
submit a formal recommendation for additional funding to Congress
as may be required.
National
Aeronautics and Space Administration (NASA)
The
Administration appreciates the Committee's efforts to fully fund
the President's request in many priority areas within NASA. Funding
in the Committee bill currently exceeds the requested level for
the International Space Station (ISS), and is contingent on providing
a comprehensive plan to the Appropriations Committee. The Administration
does not believe that additional funding is necessary based on the
current management plan. Should the House pursue this course, the
Administration will make any additional funding contingent on certification
by the Office of Management and Budget that cost growth in the ISS
has been contained based on the assessment of an external review
team. The required comprehensive plan will include measures that
will contain future cost growth in this program. We look forward
to working with the House to address mutual concerns, including
improving management of the Station, and ensuring better cost controls
and quality research.
Earmarked
Funds
The
Administration commends the House Committee for limiting the level
of earmarks in HUD and VA. However, we are concerned about the level
of earmarks for EPA, NASA and the National Science Foundation (NSF).
The Administration is concerned that the Committee has chosen to
fund five lower priority, unrequested projects within NSF for a
total of $62 million. The Administration also has serious concerns
with the over $150 million in earmarks in the Committee bill that
would displace higher-priority, merit- and peer-reviewed, science
and technology programs in NASA's Space Science, Earth Science,
and Aerospace Technology Enterprises. For example, the Administration
places higher priority on astronomical and climate change research
than on the earmarks for museums, planetariums, and corporate jets.
Infringement
on Executive Authority
The
Administration objects to a number of provisions in the bill that
would require Committee approval before Executive Branch execution.
The Administration will interpret these provisions to require only
notification of Congress, since any other interpretation would contradict
the Supreme Court ruling in INS v. Chadha.
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