40–212

105TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 105–83

MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR RECOVERY

FROM NATURAL DISASTERS, AND FOR OVERSEAS PEACEKEEPING EFFORTS, INCLUDING THOSE IN BOSNIA, FOR THE FISCAL YEAR ENDING

SEPTEMBER 30, 1997, AND FOR OTHER PURPOSES

APRIL 29, 1997.—Committed to the Committee of the Whole House on the State of

the Union and ordered to be printed

Mr. LIVINGSTON, from the Committee on Appropriations,

submitted the following

REPORT

together with

ADDITIONAL VIEWS

[To accompany H.R. 1469]

The Committee on Appropriations submits the following report in

explanation of the accompanying bill making emergency supplemental appropriations for recovery from natural disasters, and for

overseas peacekeeping efforts, including those in Bosnia, for the fiscal year ending September 30, 1997, and for other purposes.

BILL HIGHLIGHTS

The bill recommended by the Committee includes $8,419,452,000

of urgent supplemental appropriations to provide for identified

needs for fiscal year 1997. This includes $5,508,872,000 of emergency supplemental appropriations for recovery from natural disasters, $2,039,880,000 of emergency supplemental appropriations for

overseas peacekeeping efforts, including those in Bosnia,

$113,500,000 of non-emergency supplemental appropriations for

several miscellaneous accounts, and $757,200,000 of mandatory

supplemental appropriations mostly for veterans compensation and

pensions. All of these discretionary supplemental appropriations

are offset by rescissions or other offsets contained in the bill with

the exception of the mandatory appropriations which do not score

against the Committee’s discretionary spending allocation pursuant

to the Budget Act.
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BILL SUMMARY

Activity Amount

Disaster Recovery ........................................................................... $5,508,872,000

Miscellaneous Appropriations ........................................................ 113,500,000

Domestic Offsets ............................................................................. ¥5,394,109,000

Subtotal, Domestic Discretionary ....................................... 0

Peacekeeping (including Bosnia) ................................................... 2,039,880,000

Defense Offsets ............................................................................... ¥2,040,347,000

Subtotal, Defense Discretionary ......................................... ¥467,000

Mandatory Appropriations ............................................................. 757,200,000

Many of the appropriations in the accounts providing recovery

from natural disasters are greater than the amounts formally requested by the President. It is important to recognize that as the

Committee was developing this bill, major new flooding was being

experienced in several locations around the country, and the estimates of needs from other past floods have been revised since the

time the President made his initial request of March 19. He made

a subsequent request on April 23 to address the flooding and related devistation in the Dakotas and Minnesota to which the Committee increased amounts in the bill. Also, the Administration has informally informed the Committee of several revised estimates of

needs above those amounts officially requested. All of these factors

plus a continuous monitoring of the situation with affected agencies

have resulted in the funding recommendations contained in the

bill.

As conditions and needs continue to be better known, the

amounts in the bill may need to be revised further. This may have

to be done during the floor process, by the Senate, or during conference. It is in this light that the Committee is reporting this bill.

Reporting the bill now and beginning the process of getting aid to

the victims of natural disasters with the potential of revising estimates throughout the process is more important than delaying the

bill in anticipation of better estimates.

TITLE I

EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR

RECOVERY FROM NATURAL DISASTERS

CHAPTER 1

DEPARTMENT OF AGRICULTURE

ANIMAL AND PLANT HEALTH INSPECTION SERVICE

Boll weevil eradication is one of the most important and successful agricultural programs. Significant progress has occurred across

the South in controlling this pest. Recently the State of New Mexico initiated a referendum to participate in the program. The Committee believes APHIS should continue to provide assistance for

monitoring and tracking activities in Roosevelt and Lea Counties,

New Mexico and is encouraged to facilitate implementation of a
3

boll weevil eradication program pending the referendum results

from Dona Ana and Sierra Counties, New Mexico.

The Committee remains concerned about the impact of the Department’s regulations regarding the wheat disease Karnal Bunt.

It is the Committee’s belief that this minor wheat disease has

caused major problems in the international trade of wheat, thus

impacting the domestic wheat industry. It is the intent of the Committee that the integrity of the U.S. wheat industry is maintained

and remains competitive in the international market and that issues of grain quality and crop health be defined by the scientific

community. Accordingly, the Committee directs the Department to

be instrumental in convening an international symposium to investigate the global implementation of a new policy to manage Karnal

Bunt as a grain quality issue. It is the desire of the Committee

that this symposium be convened promptly in 1997 and its findings

be reported to the House and Senate Committees on Agriculture

and House and Senate Committees on Appropriations within 60

days of the symposium’s conclusion.

FARM SERVICE AGENCY

EMERGENCY CONSERVATION PROGRAM

The Committee provides $65,000,000 for the emergency conservation program to provide cost-sharing assistance to farmers and

ranchers whose farmland was damaged as a result of flooding and

other natural disasters. This funding is available nationwide for all

qualified applicants. The Committee has provided authority to use

these funds for expenses related to livestock carcass removal.

CONSERVATION RESERVE PROGRAM

The Committee continues to support strongly the objectives of

the Conservation Reserve Program (CRP). The Committee believes

that the best way to maximize conservation benefits is to assure

competitive enrollments over time. By limiting the extent of enrollments in the first year of the reauthorized program, the Committee

believes that targeting can be improved to enhance the conservation benefits of the CRP.

The Committee is aware of and approves the recent initiatives by

the Department to target watershed objectives through the continuous enrollment program and through State-initiated enhancement

proposals that would help target resources, such as those submitted by Illinois, Minnesota, and Maryland. More time and opportunity are needed to develop this aspect of the program, and the

Committee believes the Department should reserve sufficient acreage to maximize the potential of these initiatives.

The Committee is also concerned that proposed enrollments in

the current sign-up would provide little benefit to several regions

of the country, in part because of rental rate formulas that do not

take account of the different circumstances that influence fair market value in all regions of the country. Although the Committee expects that the great majority of CRP enrollments will and should

remain in regions of the country that have traditionally participated heavily in the program, it encourages the Department to use

its full authority to assure that CRP provides meaningful benefits
4

nationwide for watershed-based approaches that achieve environmental benefits such as water quality, flood control, wetlands conservation, and wildlife habitat.

The Committee has further clarified that the authority to enroll

marginal pasturelands under the criteria of the CRP applies to

lands used for grazing regardless of their degree of manipulation.

This clarification should assist in the nationwide success of the continuous enrollment program and does not affect the statutory criteria for enrolling marginal pastureland. Rangeland and riparian

areas are important to protect for a variety of conservation and environmental purposes.

TREE ASSISTANCE PROGRAM

The Committee has provided funds for emergency assistance to

small orchardists. Similar assistance was authorized and provided

through the Tree Assistance Program in the Disaster Assistance

Act of 1988 (P.L. 100–387), the Disaster Assistance Act of 1989

(P.L. 101–82), and by authorizations in the 101st and 102nd Congresses.

The Committee directs the Department to administer the program with provisions enacted in past disaster assistance acts, including provisions that limit the assistance to orchardists who own

500 or fewer acres, whose gross income does not exceed $2,000,000,

and who suffer losses in excess of 35 percent. In addition, reimbursement shall not exceed 65 percent of the cost of replanting

trees, assistance in a calendar year may not exceed $25,000, and

no duplicative payments may be received under this authority and

the forestry incentives program, environmental quality incentives

program, or other Federal programs.

BARLEY PAYMENT INEQUITY

‘‘The Committee is aware that a mistake was made in interpreting data utilized in determining the payment formula established

under the Agriculture Market Transition Act (7 U.S.C. 7201 et

seq.) for the 1996 AMTA payments to the producers of barley. Due

to this misinterpretation of data, 1996 payments to barley producers were approximately $35 million less than intended by Congress. Accordingly, it is the intent of the Committee that the Secretary of Agriculture shall, within 60 days of enactment of this legislation, submit a report to the appropriate committees of Congress

detailing what specific authority would be required from Congress

to allow the Secretary to provide an additional $35 million to the

1997 barley payment adjustment.

NATURAL RESOURCES CONSERVATION PROGRAM

WATERSHED AND FLOOD PREVENTION OPERATIONS

The Committee provides $150,700,000 for emergency watershed

and flood prevention operations to repair damages to waterways

and watersheds resulting from flooding and other natural disasters. These funds would be used to provide disaster assistance to

communities to reduce hazards to life and property in watersheds

damaged by natural disasters. This funding is available nationwide

for all qualified applicants. Of the total amount provided, not more
5

than $10 million may be used for floodplain easements. The Department is in the rulemaking process of this new program. This

funding will be used as a pilot program until rules can be published. The Committee also prohibits the use of these funds for the

salmon memorandum of understanding. The Committee believes

the Department’s first priority should be to take care of damages

resulting from natural disasters.

The Committee is concerned about the current condition of levees

along the Cosumnes River, California. This flood control system

suffered catastrophic failure resulting from this past winter’s

storms in the area. More than 30 levee failures allowed river waters to flood homes and destroy fertile farmlands along the

Cosumnes. Local officials are to be commended for their response

to find immediate and long-term solutions that will minimize future flooding. To assist their efforts, the Committee encourages the

Department to provide assistance to qualified applicants for the repair, restoration, reconstruction, and replacement of the levees

along the Cosumnes River, California.

RURAL HOUSING SERVICE

RURAL HOUSING INSURANCE FUND PROGRAM

The Department has not identified any specific use for the

amount requested. Of the $59,000,000 appropriated in fiscal year

1997 for loans for the rehabilitation of rural rental housing, approximately $50,000,000 remains unobligated as of February 1,

1997. USDA officials have indicated to the Committee that applications for emergency assistance are given priority consideration over

routine applications for funding. Therefore, the Committee believes

that more than adequate funding is available for emergency requests.

RURAL HOUSING ASSISTANCE

The Department has not identified any specific use for the

amount requested. Of the funds allocated by the Department from

fiscal year 1997 appropriations, more than half remains unobligated for very low-income housing repair grants and more than two

thirds remains unobligated for farm labor housing grants as of February 1, 1997. In addition, the Administration has available from

the Fund for Rural America $17.7 million for construction or rehabilitation of single family rural housing and $2.0 million for farm

labor housing grants and loans. USDA officials have indicated to

the Committee that applications for emergency assistance are given

priority consideration over routine applications for funding. Therefore, the Committee believes that more than adequate funding is

available for emergency requests.

The Committee notes the damage to College Station, Arkansas,

resulting from Spring 1997 storm events and expects the Rural

Housing Service to provide assistance related to these storms. The

Committee has provided bill language making the community eligible. In addition, the Committee notes the availability of funds in

the Community Facilities Grants account and urges the Secretary

to provide State directors discretion to provide these and other

funds to communities otherwise eligible for Community Facilities
6

Loans for response to direct and indirect damage resulting from recent natural disasters.

RURAL UTILITIES SERVICE

RURAL UTILITIES ASSISTANCE PROGRAM

The Department has not identified any specific use for the amount requested. More than half the $567,000,000 appropriated

for this account in fiscal year 1997 remains unobligated as of February 1, 1997. The Administration also has allocated from the

Fund for Rural America $9.1 million for water and waste needs.

USDA officials have indicated to the Committee that applications

for emergency assistance are given priority consideration over routine applications for funding. Therefore, the Committee believes

that more than adequate funding is available for emergency requests.

FOOD AND CONSUMER SERVICE

CHILD NUTRITION PROGRAMS

The Committee does not concur with the budget request for the

nutrition education and training program. In a hearing before the

Committee, a Department witness testified that the law did not

prohibit reprogramming funds for this purpose, but that the decision not to reprogram was an internal executive branch decision.

The Committee notes that since $3,750,000 has already been reprogrammed within the child nutrition program for nutrition education and training activities, it would not oppose the reprogramming of the remaining $6,250,000 from within the child nutrition

program. This program was provided $8.6 billion in the fiscal year

1997 appropriations bill.

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS,

AND CHILDREN (WIC)

The Committee provides $38,000,000 for the special supplemental nutrition program for women, infants, and children (WIC).

The fiscal year 1997 appropriations bill was signed into law on August 6, 1996, almost two months before the start of the fiscal year.

During the last few months of fiscal year 1996, participation levels

in the program were allowed to exceed a level that could be maintained in fiscal year 1997 without additional funding. While the

Committee is concerned that the Department and states could not

manage to operate the program within the discretionary funds provided, it is also concerned that program participants not suffer the

consequences.

The program is projecting a carryover balance of $100,000,000 at

the end of fiscal year 1997. Understanding that the program needs

some level of carryover funds for continued operations, the Committee expects the Department to reduce the carryover balance to

a level that will maintain the current participation level of 7.4 million for the remainder of the fiscal year. The Committee also directs the Department to take the necessary steps to manage participation within available funds and not exceed this level at the

end of fiscal year 1997.
7

COMMODITY FUTURES TRADING COMMISSION

The Committee recommends that no action be taken to implement the Chicago Board of Trade proposal to amend delivery specifications for corn and soybeans until the GAO conducts a comprehensive review of the proposal. In conducting its review of the

Board of Trade recommendations, the GAO shall use the following

criteria: the need for diversity of delivery locations and modes of

transportation; whether price differentials recognize obvious increases in the value of grain and oilseeds at points further along

in the flow to consumers; the ability of the contracts to balance the

needs of the domestic market as well as the export market and to

assure market competitiveness; and that the recommendations satisfy concerns about potential manipulation as addressed in the

Commodity Exchange Act, Section 5a(a)(10).

CHAPTER 2

DEPARTMENT OF JUSTICE

GENERAL ADMINISTRATION

COUNTERTERRORISM FUND

The Committee is aware of considerable efforts by the State of

New York and certain counties and local jurisdictions to support

the Federal Bureau of Investigation in its effort to investigate the

possibility that terrorism was responsible for the explosion of

Flight TWA 800 off the Long Island coast on July 17, 1996. Extraordinary expenses have been incurred by State and local agencies for evidence recovery operations, security, forensic and medical

examination of evidence, air support for the FBI, and logistical support. The FBI could not have conducted this investigation of a possible terrorist attack without the assistance provided by these

agencies. The Committee therefore directs the Attorney General to

provide $12,420,000 to the FBI from the Counterterrorism Fund, so

the FBI can reimburse these State and local agencies for their assistance in this investigation, subject to verification of appropriate

costs.

The Committee is also aware of the security arrangements required to protect against any potential threats of terrorism during

the Summit of Eight scheduled for June 20 through 22, 1997, in

Denver, as well as from the continuing Oklahoma City bombing

trial. The Committee understands that city and county law enforcement agencies in Denver will be providing the majority of security

and logistical support to the FBI in its counterterrorism mission

with regard to the Summit. The Committee directs the Attorney

General to provide $1,950,000 to the FBI from the

Counterterrorism Fund for reimbursement to State and local agencies for this support, subject to verification of appropriate costs.

The Committee also expects to be notified by the Department of

Justice within two days after passage of this bill in the House of

Representatives of any potential issues surrounding the cost estimates or activities being provided by State and local agencies on

behalf of the FBI’s counterterrorism efforts for these events.
8

DEPARTMENT OF COMMERCE

ECONOMIC DEVELOPMENT ADMINISTRATION

ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

The Committee has included $49,700,000 in contingent emergency appropriations for economic development assistance programs, of which $47,700,000 is for infrastructure expenses and the

capitalization of revolving loan funds to assist in the recovery efforts of communities impacted by recent flooding, and $2,000,000 is

for administrative expenses related to these activities. The Committee has provided this funding based on recent information provided by the Administration on the need for assistance. The Committee expects the EDA to submit a plan on the proposed expenditure of these funds prior to releasing these funds. The Committee has not included the transfer of $1,200,000 from

the Economic Development Revolving Fund to Economic Development Assistance Programs for planning and technical assistance,

as requested by the Administration. It is the Committee’s understanding that most of these funds have been requested to place

flood disaster recovery coordinators in impacted regions to coordinate disaster response efforts. The Committee notes that the Federal Emergency Management Agency (FEMA), not EDA, is responsible for coordinating federal disaster response activities, and believes FEMA is best qualified to carry out this function.

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

INDUSTRIAL TECHNOLOGY SERVICES

The Committee has included language to clarify that a total of $35,000,000 in fiscal year 1997 funds is available for new awards

under the Advanced Technology Program (ATP). When combined

with $27,000,000 in unobligated balances available from prior year

appropriations, a total of $62,000,000 is available for new grant

awards in fiscal year 1997, in addition to $6,000,000 previously

awarded with fiscal year 1996 funds. In addition, $155,000,000 is

available in fiscal year 1997 to pay the continuation costs of grants

made in prior fiscal years, and $37,000,000 is available for administration, small business innovative research, and lab support. Any

additional funds that become available through recoveries or any

other means may be spent only after notification to the Committee

under standard reprogramming procedures.

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

The Committee has not included $12,000,000 in emergency appropriations requested by the Administration for the NOAA Operations, Research, and Facilities account. The Administration proposed a total of $14,000,000 to be used for fishery habitat restoration, to be derived from $12,000,000 in emergency appropriations

and the redirection of an additional $2,000,000 from within the National Marine Fisheries Service (NMFS). Of this total amount,

$11,000,000 was requested for a new program to provide grants to
9

local groups for land acquisition along in-land waterways for longterm salmon restoration activities, and $3,000,000 was requested

for Federal-State technical assistance and public education.

The request for $11,000,000 for land acquisition along in-land

waterways represents a new activity for NOAA related to its ongoing long-term salmon restoration activities, and is not related to

activities necessary to recover from damages caused by recent

flooding in the Pacific Northwest. The Committee notes that the

Corps of Engineers and the Federal Emergency Management Agency, not NOAA, are responsible for conducting emergency repair and

restoration of these waterways. The Committee believes that initiating a new program for land acquisition, the purposes and structure of which have yet to be defined, outside of the immediate requirements of disaster response should be considered as part of the

regular appropriations process, and therefore has not recommended

funding.

In addition, the Committee has not included funds to develop

technical guidelines for Federal and State agencies involved in disaster recovery activities, or for a public education program on fishfriendly solutions to flooding problems, because these are longerterm projects, not directly connected to disaster assistance. The

Committee would be willing to consider a reprogramming request

out of regular fiscal year 1997 appropriations, in accordance with

section 605 of the fiscal year 1997 Appropriations Act, for the highest priority activities.

CONSTRUCTION

The Committee has included $10,800,000 in emergency funds for

the National Oceanic and Atmospheric Administration’s (NOAA)

‘‘Construction’’ account, as requested by the Administration. These

funds are to support the immediate repair of fish hatcheries along

the Columbia River which experienced severe damage from the recent flooding in the Northwest.

DEPARTMENT OF STATE

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

ARREARAGE PAYMENTS

The Committee has not included $921,000,000 requested by the

Administration as an advance appropriation for fiscal year 1999 for

payment of arrears on prior year assessments related to the United

Nations regular budget and peacekeeping activities, and 46 other

international organizations. Discussions are currently ongoing between the Administration and the Congress relating to the amount

of arrears, the reforms that need to be put into place prior to payment of the arrears, the period of time over which arrears would

be paid, the mechanisms that would trigger release of funds, and

improvements in the consultative process between the Administration and Congress. It would be premature to provide funding for arrearage payments, which are not proposed to be made until fiscal

year 1999, prior to the conclusion of these discussions.
10

CHAPTER 3

DEPARTMENT OF DEFENSE—CIVIL

DEPARTMENT OF THE ARMY

CORPS OF ENGINEERS—CIVIL

FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES, ARKANSAS, ILLINOIS, KENTUCKY, LOUISIANA, MISSISSIPPI, MISSOURI, AND TENNESSEE

The Committee has recommended $20,000,000 for the Corps of

Engineers to perform protective and emergency measures to ensure

the operation and stability of the flood protection system of the

Mississippi River and Tributaries project. Work would include repairs to levees, dikes, and revetments; dredging to restore channel

capacity; and repairs to diversion structures damaged in the recent

flooding in the lower Mississippi River valley. The entire amount

has been designated by the Congress as an emergency requirement

pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended. The Administration made no request for funds for the Mississippi River and

Tributaries project.

OPERATION AND MAINTENANCE, GENERAL

The Committee has recommended $150,000,000 for the Corps of

Engineers to perform emergency maintenance of projects impacted

by flooding and other natural disasters, $111,000,000 more than

the amount requested by the Administration. The additional funds

will permit the Corps of Engineers to: correct unsafe conditions and

prevent navigation delays resulting from debris accumulation, bank

failures, and groin and jetty damages in ports and navigable rivers

in California; restore navigable depths and widths to the Mississippi River—Baton Rouge to the Gulf, Mississippi River Outlets

at Venice, and Atchafalaya River navigation projects; restore navigable depths and widths in commercial navigation channels along

the Gulf Coast of Texas; repair damages to Corps of Engineers

projects resulting from flooding in the Ohio River valley; and repair

damages to Corps of Engineers projects resulting from ongoing

flooding in the upper Mississippi River and Missouri River valleys.

The entire amount has been designated by the Congress as an

emergency requirement pursuant to section 251(b)(2)(D)(i) of the

Balanced Budget and Emergency Deficit Control Act of 1985, as

amended.

FLOOD CONTROL AND COASTAL EMERGENCIES

The Committee has recommended $415,000,000, $122,800,000

more than the total amount requested by the Administration, for

the Corps of Engineers to repair eligible levees and other flood control works in states affected by floods in the winter and spring of

1997 and to perform other emergency operations activities associated with those floods. The entire amount has been designated by

the Congress as an emergency requirement pursuant to section
11

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

The Committee has not included language proposed by the Administration authorizing the Secretary of the Army to construct an

outlet from Devils Lake in North Dakota to the Sheyenne River

and has also deleted the funds requested for that work. The Committee recognizes the serious nature of the problem at Devils Lake

and will consider proposed solutions as the appropriations process

proceeds.

The Committee recognizes the catastrophic damages in Falmouth, Kentucky, resulting from severe flooding which occurred in

March, 1997. This destruction, dislocation, and loss of life compels

the Committee to consider solutions as the appropriations process

continues for fiscal year 1998.

CONSTRUCTION, GENERAL

San Timoteo Creek, California.—Pursuant to section 103(k) of

the Water Resources Development Act of 1986, the Secretary of the

Army may permit the non-Federal sponsor of a flood control project

to make its required contribution of project costs over a period of

not more than thirty years from the date of completion of the

project. The Committee directs the Corps of Engineers to apply this

provision of law to the San Timoteo Creek feature of the Santa Ana

River Mainstem project in California.

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

OPERATION AND MAINTENANCE

The Committee has recommended $7,355,000, $2,855,000 above

the amount requested by the Administration, for the Bureau of

Reclamation to repair damage to projects that occurred during winter flooding in the western states, particularly California and Nevada. Work will include repairs to access roads, pumping plants,

electrical equipment, embankments, and spillways. The entire

amount has been designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

GENERAL PROVISIONS, CHAPTER 3

SEC. 301.—The Corps of Engineers of the Department of the

Army has been the lead Federal agency regarding water and related resources of the Susquehanna River and Delaware River basins

since the basin compacts were established by law. The Corps of Engineers continues to play a pivotal role in representing the Federal

interest in the development and conservation of water and related

resources in these basins, in coordination with other Federal agencies and in cooperation with state and local governments. This supplemental language would redefine Federal Commission positions

so that, beginning in 1997 and thereafter, the United States members and alternate members appointed under the Susquehanna

River Basin Compact and the Delaware River Basin Compact shall
12

be military officers of the Corps of Engineers who shall serve without additional compensation.

SEC. 302.—The Susquehanna River Basin Commission was established in 1970 by P.L. 91–575 and the Delaware River Basin

Commission in 1961 by P.L. 87–328. The Committee notes that

these laws differ slightly on the terms served by the United States

members. On the Susquehanna River Basin Commission, the United States member serves at the pleasure of the President. On the

Delaware River Basin Commission, the member only serves during

the term of office of the President. The Committee has included

language which provides that officers of the Army Corps of Engineers will serve as United States members of these two commissions. However, it seems prudent and practical for both members

to serve at the pleasure of the President. The Committee has included language which amends the 1961 law to make the membership provision consistent with that in the 1970 law.

SEC. 303.—The bill includes language which provides that the

policy issued on February 19, 1997, by the U.S. Fish and Wildlife

Service implementing emergency provisions of the Endangered

Species Act and applying to 46 California counties that were declared Federal disaster areas shall apply to all counties nationwide

heretofore or hereafter declared Federal disaster areas at any time

during 1997 and shall apply to repair activities on flood control facilities in response to an imminent threat to human lives and property and shall remain in effect until the Assistant Secretary of the

Army for Civil Works determines that 100 percent of emergency repairs have been completed, but shall not remain in effect later than

December 31, 1998.

CHAPTER 4

DEPARTMENT OF THE INTERIOR

The funding provided in this supplemental budget for the Department of the Interior for fiscal year 1997 is to repair damages

caused by floods and other natural disasters including floods and

ice storms in the West, snow and floods in the Midwest and the

East, and tornado and high winds in Arkansas and Louisiana. The

recommended funding levels are, in some cases, based on preliminary estimates. As a result, the Committee understands that the

agencies will need to adjust funding allocations as more definitive

damage repair estimates are established. To the extent these adjustments exceed the thresholds in the established reprogramming

guidelines, the Committee will give expedited consideration to reprogramming requests related to these disasters and encourages

the Department and the Office of Management and Budget to do

likewise.

BUREAU OF LAND MANAGEMENT

CONSTRUCTION

The Committee recommends $4,796,000 for construction instead

of $3,003,000 as proposed by the Administration. Within the total,

$3,003,000 are to be derived by the transfer of unobligated balances from supplemental appropriations made available for the
13

‘‘Oregon and California Grant Lands’’ account in fiscal year 1996.

These funds are to be used for road repairs, restoration of eroded

recreation sites, bridge repair, and other repairs associated with

snow and flood damage.

OREGON AND CALIFORNIA GRANT LANDS

The Committee recommends $2,694,000 for Oregon and California grant lands as proposed by the Administration for road repair,

bridge repair, damage due to mud slides, and other repairs associated with snow and flood damage. These funds are to be derived

by the transfer of unobligated balances from supplemental appropriations made available under this heading in fiscal year 1996.

UNITED STATES FISH AND WILDLIFE SERVICE

RESOURCE MANAGEMENT

The Committee recommends $2,250,000 for resource management instead of $2,000,000 as proposed by the Administration. Of

this amount, $2,000,000 is to provide technical assistance to private landowners and to government agencies on fish and wildlife

habitat issues and $250,000 is to replace fish fry killed in the April

snow storm in the Northeast.

CONSTRUCTION

The Committee recommends $81,000,000 for construction instead

of $32,000,000 as proposed by the Administration. These funds are

to address damages caused by the floods in the West, Midwest and

Ohio River area; storms in the East; and tornadoes and high winds

in Arkansas and Louisiana.

The Committee agrees to the following distribution of funds:

Region: States Amount

1: California, Idaho, Nevada, Oregon, Washington ............................ $45,546,000

2: Oklahoma, Texas ............................................................................... 6,292,000

3: Illinois, Indiana, Iowa, Minnesota, Wisconsin ................................ 12,789,000

4: Alabama, Arkansas, Louisiana, Mississippi, Tennessee ................ 4,387,000

5: Maine, Massachusetts, West Virginia ............................................. 1,431,000

6: Montana, North Dakota, South Dakota, Utah ................................ 10,555,000

Total ................................................................................................. 81,000,000

LAND ACQUISITION

The Committee recommends $15,000,000 for land acquisition as

proposed by the Administration. This amount will enable the Fish

and Wildlife Service to acquire land and water rights, on a willing

seller basis, as a cost-effective alternative to expensive floodplain

levee and land repair necessitated by the severe winter flooding in

the western States. The Committee encourages the agency to

evaluate carefully each specific situation and limit the acquisitions

to those areas where the cost of land acquisition is less that the

cost of damage repairs. Additional consideration should be given to

those areas where past flooding has resulted in repeated repairs

and replacement of levees.

The Committee encourages the Service to leverage these limited

land acquisition funds by working with the Wetlands Reserve Pro-
14

gram and with non-profit entities like the National Fish and Wildlife Foundation.

NATIONAL PARK SERVICE

CONSTRUCTION

The Committee recommends $196,912,000 for construction in- stead of $187,779,000 as proposed by the Administration. These

funds include a total of $186,053,000 for repairs and replacement

of facilities damaged by winter storms at Yosemite National Park

including $30,000,000 in contingency funds as well as $10,000,000

in non-emergency funds to implement the Yosemite Valley Transportation Plan. The Committee agrees to rescind $10 million in

Clean Coal Technology funding in the Department of Energy, as

proposed by the Administration, to offset the non-emergency request.

The Committee strongly encourages the National Park Service to

work closely with the local communities surrounding Yosemite to

ensure that the Service’s transportation plan is consistent and compatible with the Yosemite Area Regional Transportation Strategy

(YARTS) planning effort.

The Committee recommends the following distribution of funds:

Park Unit Amount

Yosemite NP, CA (emergency) 1 ............................................................ $176,053,000

Park Unit Amount

Transportation (non-emergency) ................................................... 10,000,000

Redwood NP, CA .................................................................................... 8,955,000

Sequoia/Kings Canyon NP, CA ............................................................. 286,000

Whiskeytown NRA, CA ......................................................................... 184,000

Devils Postpile NM, CA ......................................................................... 73,000

Oregon Caves NM, OR .......................................................................... 68,000

Lava Beds NM, CA ................................................................................ 47,000

North Cascades NP, WA ....................................................................... 41,000

Mammuth Cave NP, KY ....................................................................... 542,000

North Dakota (3 projects): Theodore Roosevelt NP, ND, Knife River

NHS, ND, Fort Union Trading Post NHS, ND ................................ 210,000

Cape Cod NS, MA .................................................................................. 60,000

Fire Island NS, NY ................................................................................ 125,000

Minute Man NHP, MA .......................................................................... 79,000

Roosevelt/Vanderbilt Sites, NY ............................................................. 189,000

Total ......................................................................................... 196,912,000

1 Includes $30 million in contingency emergency appropriations.

UNITED STATES GEOLOGICAL SURVEY

SURVEYS, INVESTIGATIONS, AND RESEARCH

The Committee recommends $4,290,000 for surveys, investiga- tions, and research instead of $1,300,000 as proposed by the Administration. This funding is to be used to maintain continuity of

services for the national streamflow network, and to improve risk

assessment through post flood data collection.

BUREAU OF INDIAN AFFAIRS

OPERATION OF INDIAN PROGRAMS

The Committee recommends $11,100,000 for operation of Indian

programs instead of $5,800,000 as proposed by the Administration.
15

These funds are to be used for emergency welfare assistance, emergency school operations, heating costs, snow removal, and other activities related to flood and snow damages.

The Committee directs the Bureau of Indian Affairs to prepare

a report to Congress, within 30 days, on the estimated additional

caseload and potential costs resulting from welfare reform in States

where there are Indian reservations. The BIA should also report on

the consequences if the Bureau does not have sufficient funds to

meet the additional caseload.

CONSTRUCTION

The Committee recommends $5,554,000 for construction instead

of $5,000,000 as proposed by the Administration. These funds are

to be used for emergency repairs related to flood and snow damages.

DEPARTMENT OF AGRICULTURE

FOREST SERVICE

The Committee recommends that supplemental funds be provided for repairs and restoration caused by a series of floods, landslides and ice storms in the Pacific Northwest, California and Nevada mountains, the northern Rockies and the Ohio River area.

The Committee recognizes that there may be a need to adjust funding allocations as more definitive damage repair estimates are established. To the extent these adjustments exceed the thresholds in

the established reprogramming guidelines, the Committee will give

expedited consideration to reprogramming requests related to these

disasters and encourages the Department and the Office of Management and Budget to do likewise.

NATIONAL FOREST SYSTEM

The Committee recommends $37,107,000 for the National forest

system instead of $25,000,000 as proposed by the Administration.

Funds provide for road and trail maintenance and relocation, soil

stabilization, recreational and administrative facility repair and

maintenance, fish and wildlife habitat restoration, and required

studies, design, and National Environmental Policy Act work. Region 5 funding includes $800,000 for Shasta-Trinity Lakes debris

clean-up.

The Committee recommends the following distribution of funds:

Region 1 Region 4 Region 5 Region 6 Region 9 State total

Idaho .............................................. 950,000 2,100,000 .................... 10,000 .................... 3,060,000

Montana ......................................... 50,000 .................... .................... .................... .................... 50,000

Nevada ........................................... .................... 2,500,000 .................... .................... .................... 2,500,000

California ....................................... .................... 1,600,000 15,000,000 190,000 .................... 16,790,000

Oregon ............................................ .................... .................... .................... 10,000,000 .................... 10,000,000

Washington .................................... .................... .................... .................... 1,800,000 .................... 1,800,000

Illinois ............................................ .................... .................... .................... .................... 7,000 7,000

Indiana ........................................... .................... .................... .................... .................... 2,000,000 2,000,000

Ohio ................................................ .................... .................... .................... .................... 900,000 900,000

Region total ...................... 1,000,000 6,200,000 15,000,000 12,000,000 2,907,000 37,107,000
16

RECONSTRUCTION AND CONSTRUCTION

The Committee recommends $32,334,000 for reconstruction and

construction instead of $13,000,000 as proposed by the Administration. Funds provide for road and trail reconstruction, construction

and relocation, recreational and administration facility construction, reconstruction and relocation, and associated planning, design

work and technical support.

The Committee recommends the following distribution of funds:

Region 1 Region 4 Region 5 Region 6 Region 9 State total

Idaho .............................................. 150,000 938,000 .................... 40,000 .................... 1,128,000

Montana ......................................... 93,000 .................... .................... .................... .................... 93,000

Nevada ........................................... .................... 250,000 .................... .................... .................... 250,000

California ....................................... .................... 3,079,000 9,200,000 150,000 .................... 12,429,000

Oregon ............................................ .................... .................... .................... 13,300,000 .................... 13,300,000

Washington .................................... .................... .................... .................... 3,700,000 .................... 3,700,000

Illinois ............................................ .................... .................... .................... .................... 34,000 34,000

Indiana ........................................... .................... .................... .................... .................... 0 0

Ohio ................................................ .................... .................... .................... .................... 1,400,000 1,400,000

Region total ...................... 243,000 4,267,000 9,200,000 17,190,000 1,434,000 32,334,000

DEPARTMENT OF HEALTH AND HUMAN SERVICES

INDIAN HEALTH SERVICE

INDIAN HEALTH SERVICES

The Committee recommends $1,000,000 for Indian health services. The Administration proposed no funding for this account.

These funds are to be used for emergency contract health services,

medications and pharmaceuticals, and other emergency services associated with snow and flood damage.

INDIAN HEALTH FACILITIES

The Committee recommends $2,000,000 for Indian health facilities. The Administration proposed no funding for this account.

These funds are to be used for repair of fire sprinkler systems,

building foundations, sewer systems, and other facilities repairs associated with snow and flood damage.

GENERAL PROVISION, CHAPTER 4

SEC. 401.—The Committee recommends amending the recreation

fee demonstration pilot program which was enacted in fiscal year

1996. The amendment would remove the inflation ‘‘penalty’’ in the

current legislation which reduces the amount of fees which are

kept by the individual fee collecting units each year. The amendment also changes the base year for calculating fee increases from

fiscal year 1995 to fiscal year 1994. These changes will result in

additional fees being retained by individual collecting units beginning in fiscal year 1997 and continuing through the end of the pilot

program. The decrease in revenues to the Treasury in fiscal year

1997 resulting from this amendment are offset by a rescission in

the Clean Coal Technology program in the Department of Energy.
17

CHAPTER 5

DEPARTMENT OF TRANSPORTATION

COAST GUARD

RETIRED PAY

The Committee has provided $4,200,000 to cover the increased

cost of the Coast Guard’s military retired pay. This amount is the

same as requested by the President and is a mandatory requirement.

FEDERAL AVIATION ADMINISTRATION

FACILITIES AND EQUIPMENT

(AIRPORT AND AIRWAY TRUST FUND)

The Committee has provided an additional $40,000,000 for explosive detection systems to supplement funding provided in earlier

appropriations Acts to improve security at the nation’s airports.

The Committee believes it is imperative that FAA field additional

systems to reduce the threat of terrorist action as soon as possible.

According to the FAA, without these additional funds, the production line for the only certified system will be interrupted, resulting

in an unacceptable delay in security improvements and higher

costs for future systems.

FEDERAL HIGHWAY ADMINISTRATION

FEDERAL-AID HIGHWAYS

EMERGENCY RELIEF PROGRAM

(HIGHWAY TRUST FUND)

The Committee has provided a total of $650,000,000 for emergency relief activities of the Federal Highway Administration, an

increase of $359,000,000 over the President’s request. The Committee is concerned that the level requested by the administration is

insufficient to meet existing identified needs and that the funds

would be fully obligated by the end of July 1997, possibly requiring

another supplemental before the end of the summer.

Emergency relief funds will provide additional resources to repair

highway damage resulting from the floods in the western, midwest

and mid-Atlantic regions, and the northern plains states of the nation between December 1996 and April 1997. The Committee has

included bill language that lifts the $100,000,000 limit on obligations per state for the December 1996 and January 1997 floods in

the West.

The bill also includes language that make emergency relif funding available for the repair or reconstruction of CA Highway 1 at

Devil’s Slide in San Mateo County

Of the funds provided, $374,000,000 shall be available only to the

extent an official budget request for a specific dollar amount, that

includes the designation of the entire amount of the request as an
18

emergency requirement, is transmitted by the President to the

Congress.

FEDERAL-AID HIGHWAYS

(HIGHWAY TRUST FUND)

The bill includes $318,077,043 in additional federal-aid highway

obligational authority for fiscal year 1997 and makes the additional

limitation available to those states that had their 1997 limitation

reduced as a result of a recent correction of a clerical error made

by the Department of the Treasury in recording the Highway Trust

Fund receipts in 1994. This error resulted in the overstatement of

Highway Trust Fund contributions by $1.5 billion in 1995. These

funds should have been credited to the 1994 Highway Trust Fund

contributions.

The following table portrays estimated obligations by state of the

additional 1997 obligational authority contained in the bill:

State Amount

Alabama .................................................................................................. $9,192,589

Alaska ..................................................................................................... ..........................

Arizona ................................................................................................... 8,882,817

Arkansas ................................................................................................. 6,506,921

California ................................................................................................ 50,711,555

Colorado .................................................................................................. ..........................

Connecticut ............................................................................................. ..........................

Delaware ................................................................................................. ..........................

District of Columbia .............................................................................. ..........................

Florida .................................................................................................... 25,954,346

Georgia ................................................................................................... 19,382,218

Hawaii .................................................................................................... ..........................

Idaho ....................................................................................................... ..........................

Illinois ..................................................................................................... ..........................

Indiana ................................................................................................... 11,574,082

Iowa ........................................................................................................ ..........................

Kansas .................................................................................................... ..........................

Kentucky ................................................................................................ 8,355,700

Louisiana ................................................................................................ 7,240,399

Maine ...................................................................................................... ..........................

Maryland ................................................................................................ 9,754,587

Massachusetts ........................................................................................ ..........................

Michigan ................................................................................................. 14,747,139

Minnesota ............................................................................................... ..........................

Mississippi .............................................................................................. 5,314,543

Missouri .................................................................................................. 9,678,737

Montana .................................................................................................. ..........................

Nebraska ................................................................................................ ..........................

Nevada .................................................................................................... ..........................

New Hampshire ..................................................................................... ..........................

New Jersey ............................................................................................. ..........................

New Mexico ............................................................................................ ..........................

New York ................................................................................................ ..........................

North Carolina ....................................................................................... 15,054,880

North Dakota ......................................................................................... ..........................

Ohio ......................................................................................................... 5,189,010

Oklahoma ............................................................................................... 7,096,552

Oregon .................................................................................................... 5,895,465

Pennsylvania .......................................................................................... 16,916,047

Rhode Island .......................................................................................... ..........................

South Carolina ....................................................................................... 9,006,026

South Dakota ......................................................................................... ..........................

Tennessee ............................................................................................... 9,427,283

Texas ....................................................................................................... 38,545,766

Utah ........................................................................................................ 2,222,803

Vermont .................................................................................................. ..........................
19

State Amount

Virginia ................................................................................................... 13,986,103

Washington ............................................................................................ ..........................

West Virginia ......................................................................................... ..........................

Wisconsin ................................................................................................ 7,441,475

Wyoming ................................................................................................. ..........................

Puerto Rico ............................................................................................. ..........................

Total ............................................................................................. 318,077,043

FEDERAL RAILROAD ADMINISTRATION

EMERGENCY RAILROAD REHABILITATION AND REPAIR

The bill provides $10,000,000 for emergency expenses to repair

and rebuild rail lines damaged as a result of the floods in the

northern plains states in the spring of 1997. These funds shall be

awarded on a case-by-case basis at the discretion of the Secretary.

The Committee believes, however, that to the extent practicable,

the Secretary should give priority consideration to publicly-owned

trackage and rights-of-way.

RELATED AGENCY

NATIONAL TRANSPORTATION SAFETY BOARD

SALARIES AND EXPENSES

The bill provides $23,300,000, of which $20,200,000 is made

available for TWA Flight 800 accident investigation costs, including

wreckage location and recovery, facility rental, fuselage mock-up,

fire and explosion testing as well as NTSB travel, overtime, and

command center costs. In addition, funds are provided for assistance to families of aviation accident victims, as authorized by the

Federal Aviation Reauthorization Act of 1996. The bill also includes $3,100,000 to reimburse Metropolitan Dade County, Florida

for costs it incurred as a result of the crash of ValuJet 592. Of the

total, $4,877,000 shall remain available until expended.

Language is included in the bill that requires the NTSB to reimburse the Navy up to $10,330,000, from the total appropriation for

the costs it incurred in connection with the investigation of TWA

Flight 800.

GENERAL PROVISIONS, CHAPTER 5

The bill includes two corrections of enrolling errors within the

Department of Transportation and Related Agencies Appropriations Act, 1997, the first relating to the DeKalb County, Georgia

light rail project (section 501) and the second to the Bureau of

Transportation Statistics (section 502).

Section 503 includes a provision that makes available $500,000

in additional contract authority for Section 410 alcohol-impaired

driving prevention incentive grants.

Section 504 includes a provision that makes available contract

authority for the National Driver Register in fiscal year 1997.
20

CHAPTER 6

TREASURY, POSTAL SERVICE, AND GENERAL

GOVERNMENT

UNITED STATES POSTAL SERVICE

PAYMENTS TO THE POSTAL SERVICE FUND

The Committee has provided $5,300,000 for revenue foregone on

free and reduced rate mail, compared to $5,363,000 requested by

the Administration. This amount, combined with the fiscal year

1997 appropriation, fully funds the Postal Service for revenue foregone reform reimbursement in the amount of $29,000,000, as authorized by law.

INDEPENDENT AGENCIES

FEDERAL ELECTION COMMISSION

The Committee has provided $1,700,000 for additional costs of

the Federal Election Commission associated with investigations

and audits of the 1996 election cycle, compared to $1,709,000 requested by the Administration. The Committee denies FEC’s request to hire an additional 7.8 full time employee equivalents and

instead earmarks these funds for FEC’s current automated data

processing efforts.

The Committee notes that, of the $1,700,000 request, FEC intends to spend $686,375 for automated data processing needs. The

Committee is pleased to learn that this money will not only be used

to assist FEC’s investigations of potential election law violations

but also will provide a critical ‘‘test bed’’ for the development and

refinement of effective case management systems prior to planned

system-wide deployment. The Committee supports this purpose.

In addition to approving the $686,375 for automated data processing needs in the current fiscal year, the Committee has included

$312,500 for second year funding of the development of

‘‘Groupware’’ and $470,000 for the first phase of FEC’s development of the ADP ‘‘Imaging Strategy’’ and has made these funds

available until September 30, 1998. The Committee believes that

these two components of FEC’s long term ADP strategy are critical

to FEC meeting its workload demands in an effective and efficient

manner. The balance of the funds appropriated, $231,125, are

available to supplement staff, for the sole purpose of providing support to the various case management and support systems funded

through this supplemental appropriation.

GENERAL SERVICES ADMINISTRATION

TOLEDO, OHIO, FEDERAL OFFICE BUILDING

The committee understands that the General Services Administration is considering the relocation of Federal space in Toledo,

Ohio. The committee wishes to acknowledge and encourage the cooperative effort being made by the City of Toledo, the Toledo-Lucas

County Port Authority, in consultation with the GSA and consistent with the current GAO review, to locate suitable space on a con-
21

solidated site for all Federal entities in the Toledo central business

district. Additionally, the committee recommends that if alternative

commercial space is secured, that the building be designated a federal service center (or some other similar designation) to assure

that Toledo continues to have a visible Federal presence.

The committee further recommends that as the GSA considers

the future accommodation of all federal entities in Toledo, it give

every consideration to consolidating all entities, both administrative and judicial, in a single, federally owned location.

COUNTER-TERRORISM AND DRUG LAW ENFORCEMENT

DEPARTMENT OF THE TREASURY

UNITED STATES CUSTOMS SERVICE

The Committee has been made aware that, owing to the requirement to obtain voluntary participation from the airline industry in

submitting manifest and commodity data, the Customs Service has

had to extend its schedule for planning and implementing the

Automated Targeting System. The Committee has included a provision to make these funds available for two years.

GENERAL PROVISION, CHAPTER 6

The Committee has recently been made aware of concerns that

fiscal year 1996 report language does not supersede fiscal year

1988 bill language addressing the issue of American ownership of

corporations or entities that supply distinctive currency paper. The

Committee has included a provision to clarify the Committee’s intent regarding the procurement of distinctive currency paper and,

specifically, that the corporation or entity which is awarded the

contract for currency paper must be 50 percent or more Americanowned.

The current supplier of currency paper has had a virtual 117

year sole source contract with the Federal Government. The Committee stresses that it is not unsatisfied with the performance of

the current provider of distinctive currency paper; rather, the Committee simply supports the Administration’s desires to increase

competition for the supply of paper so that other American-owned

companies can have the opportunity to be considered in the bidding

process.

The Committee also notes that the provision does not change the

requirement that distinctive currency paper purchased by BEP to

print United States currency must be produced by an Americanowned company and must be manufactured in the United States.

The Committee also takes this opportunity to restate its insistence

that production locations for currency paper remain under the jurisdiction of U.S. law enforcement officials.
22

CHAPTER 7

DEPARTMENT OF VETERANS AFFAIRS

VETERANS BENEFITS ADMINISTRATION

COMPENSATION AND PENSIONS

An appropriation of $18,671,259,000 was provided for the compensation and pensions account in fiscal year 1997. A fiscal year

1997 supplemental appropriation of $753,000,000 is requested for

the compensation and pensions account. Of this amount,

$340,400,000 is due to the 2.9 percent cost-of-living adjustment effective December 1, 1996 as authorized in the Veterans’ Compensation Cost-of-Living Adjustment Act. The remaining $412,600,000 is

required because of increases in the number of beneficiaries as well

as the average cost per claim. Pension costs are also more than

originally estimated due to an increase in the caseload. The Committee has included the supplemental budget request to provide the

balance of funds required in fiscal year 1997 for the compensation

and pensions appropriation.

ADMINISTRATIVE PROVISION

The fiscal year 1997 VA, HUD, and Independent Agencies Appro- priations Act provided $12,300,000 for the parking structure component of the ambulatory care addition project at the Cleveland VA

Medical Center. Language is included in the bill to permit construction on this project to proceed.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HOUSING PROGRAMS

PRESERVING EXISTING HOUSING INVESTMENT

The Committee has included $3,500,000 and language to correct

a technical error which resulted in excluding inadvertently the Valley Vista property in Syracuse, New York, from inclusion in the

statutory standard for preservation carveout properties. During deliberations on the fiscal year 1996 appropriations legislation, this

property was listed in HUD’s listings of carveout properties but

there was insufficient funding for the project. However, during deliberations on the fiscal year 1997 appropriations legislation, the

Committee accepted HUD’s view that Valley Vista would be funded

as a carveout property. After enactment, HUD reported that, in

fact, the statutory language included in the 1997 appropriations

measure excluded Valley Vista. This language reinstates the property for funding.

DRUG ELIMINATION GRANTS FOR LOW-INCOME HOUSING

The Committee is recommending a transfer of $30,200,000 of unobligated balances from the Homeownership and Opportunity for

People Everywhere (HOPE) Grants program to the Drug Elimination Grants program to provide necessary funds to augment

HUD’s crime prevention efforts in federally assisted low-income

housing. The HOPE program originally provided for the sale to
23

low-income families of acquired and rehabilitated HUD-owned

properties as well as properties with HUD-held mortgages. The

number of the properties eligible to participate in this program

have been reduced and, therefore, these funds are no longer needed

to fund the HOPE program.

INDEPENDENT AGENCIES

FEDERAL EMERGENCY MANAGEMENT AGENCY

DISASTER RELIEF

The Committee is recommending an emergency supplemental ap- propriation of $3,567,677,000 for disaster relief. This recommended

funding is necessary to meet all current emergency disaster needs,

including those resulting from recent floods and tornadoes throughout the nation, and is expected to be sufficient to meet anticipated

disaster needs for the remainder of fiscal year 1997 and a majority

of 1998. Bill language is included which makes $2,387,677,000 of

the appropriated amount available on the last day of the fiscal

year. The Committee’s recommendation makes it possible for the

Federal Emergency Management Agency to enter fiscal year 1998

with approximately 90 percent of its projected disaster relief needs

already in hand, thus assuring smooth and timely response to

emergency requirements during the height of the ‘‘hurricane’’ season.

SALARIES AND EXPENSES

The workload requirements resulting from an extraordinarily active ‘‘disaster season’’ have exceeded available financial and personnel resources. The Committee recommends an additional

$5,000,000 for fiscal year 1997 salaries and expenses to meet this

need.

EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

The recent floods in Northern California have highlighted the

lack of critical information relating to the levees and topography of

the Sacramento and San Joaquin Valleys. To help remedy this situation, the Committee expects FEMA to partner with the California

Department of Conservation and the Defense Advanced Research

Projects Agency (DARPA) to fund the IFSAR–E digital mapping

service in coordination with the State’s GeoSar program for creation of a geographical information system for the collection, maintenance and analysis of data relevant to flood threats in the Sacramento and San Joaquin Valleys. The Committee expects FEMA

to fund this collaborative effort at an amount not to exceed

$2,500,000 through existing balances in the Emergency Management Planning and Assistance account.

NATIONAL FLOOD INSURANCE FUND

The Committee has recommended bill language which amends

the National Flood Insurance Act of 1968 by reducing the waiting

period before which a flood insurance policy takes effect. Since

1993, the statute has stipulated that a flood insurance policy will

not go into effect for 30 days following purchase of such a policy.
24

Upon learning of the potential flood disaster waiting to happen in

North Dakota, South Dakota and Minnesota, thousands of individuals purchased flood insurance. Unfortunately, snows melted and

the flooding occurred sooner and much heavier than expected, thus

leaving many such policyholders just a few days short of having

their insurance take effect.

Prior to 1993, this waiting period fluctuated between 5 and 15

days. The language recommended by the Committee will remedy

the unintended effect of those individuals caught in this 30-day

waiting period by once again requiring just a 15 day waiting period

for those policies purchased between January 1 and June 30, 1997.

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

The Committee is concerned that the conveyance of Parcels III,

IV, V, and VI of the NASA Industrial Plant, Downey, California,

to the City of Downey, as called for in P.L. 104–204, enacted September 26, 1996, has not yet been completed. This conveyance is

to be accomplished by NASA, with the concurrence of the GSA Administrator. The Committee urges the GSA, as the agent of the

Government responsible for the conveyance, to accomplish it expeditiously, consistent with the direction included in the Conference

Agreement accompanying H.R. 3666, the FY 1997 VA-HUD-Independent Agencies appropriations bill. Consistent with the instructions of the Conference Report, the Committee urges the GSA to

continue working with the City of Downey and to expedite an

agreement with respect to its need to enter into ground leases for

the purpose of obtaining construction funding, and include language in the deed of conveyance which will specifically address this

concern.

CHAPTER 8

OFFSETS AND RESCISSIONS

DEPARTMENT OF AGRICULTURE

OFFICE OF THE SECRETARY

FUND FOR RURAL AMERICA

The Committee reduces the amount available to the Secretary for

the Fund for Rural America to $80 million and uses the savings

provided as a partial offset for emergency disaster and WIC supplemental funding. The Committee also provides the Secretary with

the authority to use the Fund for Rural America, at his discretion,

for the WIC program.

NATURAL RESOURCES CONSERVATION SERVICE

WETLANDS RESERVE PROGRAM

There is a $31 million unobligated balance remaining from the

fiscal year 1996 wetlands reserve program. The Committee proposes to use $19 million of these funds as a partial offset for emergency disaster and WIC supplemental funding.
25

FOOD AND CONSUMER AGENCY

THE EMERGENCY FOOD ASSISTANCE PROGRAM

The Personal Responsibility and Work Opportunity Reconciliation Act provided for $100 million in food stamp funding to be

used for TEFAP commodity purchases in fiscal year 1997. This

funding is in addition to the funding provided in the fiscal year

1997 appropriations bill. The Committee proposes to reduce the

amount available through the food stamp program to $80 million

and use the savings as a partial offset for emergency disaster and

WIC supplemental funding.

FOREIGN AGRICULTURAL SERVICE

EXPORT CREDIT

The fiscal year 1997 appropriations bill included $5.5 billion for

the export credit guarantee program. The Committee reduces the

total amount available to $3.5 billion and uses the savings as a

partial offset for emergency disaster and WIC supplemental funding.

EXPORT ENHANCEMENT PROGRAM

The fiscal year 1997 appropriations bill included $100 million for

the export enhancement program (EEP). The Committee reduces

the amount available for EEP to $10 million and uses the savings

provided as a partial offset for emergency disaster and WIC supplemental funding.

PUBLIC LAW 480 PROGRAM AND GRANT ACCOUNT

The Committee does not concur with the Administration request

to rescind $50,000,000 from Title I of Public Law 480 international

food aid. Congress has given the Administration authority to transfer funds among the three food aid programs, including Title I.

Therefore, a shortage in Title II humanitarian funds could be provided through Title I. With food aid program resources at historic

lows and the potential for new requirements for Zaire and North

Korea, the Committee believes that it is not prudent at this time

to make a large reduction in a major food aid program.

DEPARTMENT OF JUSTICE

GENERAL ADMINISTRATION

WORKING CAPITAL FUND

(RESCISSION)

The Committee recommends a rescission of $6,400,000 of unobligated balances available in the Working Capital Fund because they

are not required to support activities of the Department of Justice.

The Administration proposed this rescission in its transmittal of rescissions and deferrals on February 10, 1997.
26

LEGAL ACTIVITIES

ASSETS FORFEITURE FUND

(RESCISSION)

The Committee recommends a rescission of $3,000,000 of unobligated balances available in the Assets Forfeiture Fund Super Surplus. This funding is available as a result of Section 108 of Title

I of Public Law 104–208, which allows balances remaining in the

Assets Forfeiture Fund after September 30, 1996 to be available to

the Attorney General for authorized purposes of the Department of

Justice.

IMMIGRATION AND NATURALIZATION SERVICE

CONSTRUCTION

(RESCISSION)

The Committee recommends a rescission of $1,000,000 from

amounts provided for fiscal year 1995 for construction projects of

the Immigration and Naturalization Service (INS). The Committee

has previously objected to the use of funds for construction of a permanent traffic checkpoint on Interstate 19 (I–19) in Arizona. As a

result, this funding remains unobligated and unexpended. The

Committee does not intend to support the establishment of a permanent checkpoint on I–19 and therefore recommends a rescission

of $1,000,000 in this account.

The Committee has also been informed that the INS recently

moved the temporary checkpoint on I–19 to a point further north

on this interstate. The Committee recognizes the value a temporary

checkpoint can provide and expects that the Border Patrol will continue to operate a temporary checkpoint in Arizona. However, the

Committee is concerned that the operation of this temporary checkpoint is currently limited only to I–19 and directs the Border Patrol

to change its existing strategy for this checkpoint operation to a

‘‘roving’’ checkpoint operation which does not stay in one location

for an extended period of time and is moved on a periodic basis to

other major roads extending from the border into Arizona, and not

solely I–19.

DEPARTMENT OF COMMERCE

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

INDUSTRIAL TECHNOLOGY SERVICES

(RESCISSION)

The Committee recommends a rescission of $7,000,000 from the

unobligated balances available under the Advanced Technology

Program. This amount has been identified as in excess of requirements for existing award commitments due to award changes and

cancellations during the first quarter of fiscal year 1997 and is

therefore available for rescission.
27

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

FLEET MODERNIZATION, SHIPBUILDING AND CONVERSION

(RESCISSION)

The Committee recommends a rescission of $2,000,000 from the

unobligated balances available in this account. It is the Committee’s understanding that unobligated balances totaling $7,586,000

carried forward into fiscal year 1997, resulting in a total availability of $15,586,000, which is $3,586,000 above the requested level

for fiscal year 1997. Thus, at least $2,000,000 is available for rescission.

RELATED AGENCIES

FEDERAL COMMUNICATIONS COMMISSION

SALARIES AND EXPENSES

(RESCISSION)

The Committee recommends a rescission of $1,000,000 from the

unobligated balances available under the Salaries and Expenses account of the Federal Communications Commission (FCC). Due to

lower-than-anticipated staffing levels and higher-than-anticipated

fee recoveries, the FCC carried forward $8,239,000 into fiscal year

1997. As of February 1, 1997, FCC staffing remained 195

workyears below the level provided for in fiscal years 1996 and

1997. Therefore, it is unlikely that the FCC will be able to spend

the funds recommended for rescission by the end of fiscal year

1997.

OUNCE OF PREVENTION COUNCIL

(RESCISSION)

The Committee recommends a rescission of $1,000,000 of funds

appropriated under Public Law 104–208 for the Ounce of Prevention Council. The Committee is aware that the Council is behind

in its announcement and award of grants under this program. The

solicitation for grants to award the $1,000,000 provided in fiscal

year 1996 just appeared in the Federal Register on January 17,

1997. It is further noted that $1,500,000 was carried forward in

both fiscal years 1995 and 1996 and therefore it is unlikely that

this program will spend all of the funds appropriated in fiscal year

1997.

DEPARTMENT OF ENERGY

ENERGY PROGRAMS

ENERGY SUPPLY, RESEARCH AND DEVELOPMENT ACTIVITIES

(RESCISSION)

The recommendation rescinds $22,532,000 from the Energy Supply, Research and Development Activities appropriation account.

This rescission reflects the level of unobligated balances available

for programs on October 1, 1996. The reduction represents funds
28

made available by the Department to supplement FY 1997 spending which were not anticipated to be available by the Committee.

Accordingly, the Department is directed to reduce programs in accordance with each program’s share of the $22,532,000 as detailed

on the final Status of Appropriations Report for FY 1996.

DEPARTMENT OF ENERGY

CLEAN COAL TECHNOLOGY

(RESCISSION)

The Committee recommends a rescission of $17,000,000 for clean

coal technology. This rescission includes $10,000,000, as proposed

by the Administration to offset the appropriation for implementing

the transportation plan for Yosemite National Park and $7,000,000

to offset the fiscal year 1997 impact of the amendment to the recreation fee demonstration pilot program addressed in Section 401 of

chapter 4 in this title. These funds are available for rescission due

to projects that have been terminated prior to completion. The rescission is not specific to any particular round of clean coal

projects.

STRATEGIC PETROLEUM RESERVE

(RESCISSION)

The Committee recommends a rescission of $11,000,000 for the

strategic petroleum reserve as proposed by the Administration.

These funds are available for rescission because of cost savings in

the SPR life extension program.

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

GRANTS-IN-AID TO AIRPORTS

(RESCISSION OF CONTRACT AUTHORIZATION)

The bill rescinds $750,000,000 in contract authority that is not

available due to annual limits on obligations.

NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

HIGHWAY TRAFFIC SAFETY GRANTS

(HIGHWAY TRUST FUND)

(RESCISSION OF CONTRACT AUTHORIZATION)

The bill rescinds $13,000,000 in contract authority that is not

available for obligation due to annual limits on obligations.
29

FEDERAL TRANSIT ADMINISTRATION

TRUST FUND SHARE OF EXPENSES

(HIGHWAY TRUST FUND)

(RESCISSION OF CONTRACT AUTHORIZATION)

The bill rescinds $271,000,000 in contract authority that is not

available for obligation due to annual limits on obligations.

DISCRETIONARY GRANTS

(HIGHWAY TRUST FUND)

(RESCISSION OF CONTRACT AUTHORIZATION)

The bill rescinds $588,000,000 in contract authority that is not

available for obligation due to annual limits on obligations.

GENERAL SERVICES ADMINISTRATION

AGRICULTURAL RESEARCH SERVICE LABORATORY

In fiscal year 1997, Congress provided $8,000,000 for the renovation of the Agricultural Research Service Laboratory in Ames,

Iowa. This federally-owned laboratory houses the Animal and Plant

Health Inspection Service (APHIS). The Congress directed that the

funds be used only for biomedical safety and operational improvements for APHIS operations.

The Committee now understands that APHIS, as well as local of- ficials, have indicated a desire to transfer this $8,000,000 to the

construction of a larger facility at an estimated cost of $73,000,000.

The Committee believes that transferring the $8,000,000 from renovation to new construction is not in keeping with the fiscal year

1997 Congressional direction. Since the funds will not be used for

the purposes for which appropriated, the Committee rescinds

$1,400,000 from the Agriculture Research Service Laboratory funding. Should APHIS reassess its position and determine that it

wishes to follow the 1997 Congressional direction, the Committee

will review the renovation requirements in fiscal year 1998.

EXPENSES, PRESIDENTIAL TRANSITION

The Committee has rescinded $5,600,000 in funds available for

the costs associated with the Presidential Transition, as requested

by the Administration.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HOUSING PROGRAMS

ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING

(RESCISSION)

The Committee recommends a rescission of $3,823,440,000 from

funds recaptured during fiscal year 1997 and prior years. Of this amount, $250,000,000 results from the elimination of excess funds available on some long-term section 8 contracts, the cancellation of reservations for public housing development projects
30

unable to proceed to construction and the recapture of funds from

inactive programs. This amount was included in the President’s rescission package. The additional $3,573,440,000 is excess section 8 reserve funds.

Using improved accounting and tracking systems, HUD has been

reconciling PHAs’ section 8 contract accounts to determine the level

of unspent budget authority. This amount represents additional reserves identified by HUD as a result of a budget analysis requested

by the Committee. It is in addition to approximately $1,600,000,000

in unspent budget authority—or excess contract reserves—which

HUD identified at the end of 1996 and used to reduce the level of

funding required to fund section 8 contracts in fiscal year 1998.

TITLE II

EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR

PEACEKEEPING

CHAPTER 1

DEPARTMENT OF DEFENSE—MILITARY

SUPPLEMENTAL REQUESTS

The President has requested supplemental fiscal year 1997 appropriations for the Department of Defense totaling $2,098,214,000.

These include:

(a) $2,006,214,000 in emergency supplemental appropriations to

finance unbudgeted personnel, operations, and equipment

drawdown costs associated with contingency operations, most notably those in Bosnia and Southwest Asia;

(b) $72,000,000 in emergency supplemental appropriations for

the Reserve Mobilization Income Insurance Fund; and

(c) $20,000,000 in supplemental appropriations to carry out the

provisions of the National Defense Authorization Act for Fiscal

Year 1997 regarding payments to eligible South Vietnamese individuals or their survivors who were captured or incarcerated in the

Vietnam conflict (referred to as OPLAN 34A/35 P.O.W. payments).

The supplemental request also includes two proposed rescissions,

totaling $72,000,000, to offset the additional funding for the Reserve Mobilization Income Insurance Fund mentioned above. Finally, the President proposed a general provision canceling

$4,800,000,000 of unidentified appropriations from the fiscal year

1997 Defense Appropriations and Military Construction Acts, and

granting the Secretary of Defense authority to determine which

programs, projects and activities shall be canceled within this

amount. This general provision was proposed as an offset for the

requested emergency supplemental appropriations for contingency

operations and also to reduce fiscal year 1998 defense outlays.

COMMITTEE OBSERVATIONS

For the third consecutive year, the Committee finds itself confronted with a sizable request for supplemental appropriations to

reimburse the unbudgeted costs of military contingency operations.

The requirement for supplemental funds this year stems from the
31

President’s decision to extend U.S. participation in the NATO-led

peacekeeping effort in Bosnia by eighteen months (from the original target withdrawal date of December 1996 to June 1998), as

well as increased requirements associated with operations in

Southwest Asia.

The Committee lauds the professionalism and courage of the men

and women of our armed forces who are skillfully carrying out

these challenging and complicated operations. Both the Bosnia and

Southwest Asia deployments have been carried out while the overall size and resources of the U.S. military continue to decline.

These operations have contributed in no small degree to the continued high pace of U.S. military operational and personnel tempo

which are at the highest peacetime levels in recent history. These

operations, and the performance of American forces, are a stark reminder that the post-Cold War era remains a volatile and dangerous period in which a well trained and equipped U.S. military

is essential.

In order to finance these deployments, the Department of Defense has been forced to use fiscal year 1997 funds originally intended for readiness training, facilities and equipment maintenance and day-to-day base operations. If these funds are not replenished, as proposed in the supplemental request, there would inevitably be an enormously negative impact on U.S. forces due to

the absence of funds for training and other readiness related activities in the remaining months of this fiscal year. The Committee believes it imperative that this be avoided, and therefore finds it necessary to approve the majority of the supplemental request.

The Committee reaches this conclusion despite considerable concern and, indeed, dismay over a number of issues associated with

these ongoing operations. First and foremost among these is the

President’s decision to extend the Bosnia mission by eighteen

months without any effort to consult with and seek approval from

Congress. At its inception, U.S. military participation on the

ground in Bosnia as part of an international peacekeeping force

was justified to Congress and the American public as a one-year

operation. Beginning in 1995 and throughout most of last year, in

the face of questions raised by Congress and others regarding the

potential for an extended deployment of American forces and the

lack of an ‘‘exit strategy’’, the President and senior Administration

officials insisted the Bosnia deployment would be limited in duration and cost and cited the commitment to withdraw American

forces by December 1996 as evidence of these limits.

With the President’s change in policy, however, the Bosnia operation now will last two and one-half years and the cost of the operation will more than double, with Department of Defense costs

alone increasing from $3.1 to $6.5 billion. The Committee believes

strongly that in light of its previous commitments, and the considerable costs associated with a mission extension, the Administration had an obligation to seek the approval of Congress in advance

of extending the mission in Bosnia. The Committee also remains

concerned that, other than establishing a new ‘‘date certain’’ for

withdrawal, little has been communicated to describe the Administration’s exit strategy for Bosnia, nor is much known about plans

to maintain stability once NATO forces are withdrawn.
32

The Committee must also call attention to the considerable impact this operation is having throughout the U.S. defense program.

The sheer cost of the Bosnia deployment and the repeated need to

seek supplemental appropriations or reprogrammings paid for from

other defense programs have disrupted defense planning and detracted from other critical needs facing the military services. While

troops deployed to Bosnia have performed admirably, the significant number of recent peacekeeping and contingency operations are

having a detrimental effect on overall military readiness and the

status of the force. Units deployed in support of the Bosnia operation and other peacekeeping and humanitarian assistance operations have of necessity had to forego normal missions, training

routines, and scheduled rotations. This means lost training opportunities and an increase in the frequency and duration of deployments away from home stations and families. Following several

years of record peacetime operations and personnel tempo, such deployments invariably contribute to morale problems and a disruption in the ability of U.S. forces to remain prepared for their primary warfighting missions. For these reasons, the Committee remains deeply concerned that the deployment of U.S. forces in

Bosnia not turn into an open ended commitment.

With the President’s extension of the U.S. deployment to Bosnia

through June 1998, U.S. troops will have had a major presence in

Bosnia for two and one-half years. The Committee observes the

Secretary of Defense has clearly stated his intent that U.S. forces

be withdrawn after this point. In testimony before the Committee

this year, General Joulwan, the Commander-in-Chief, United

States European Command, stated ‘‘If you can’t get the act together in two and one-half years * * * then I’m not sure the act

can be gotten together in ten years.’’ Accordingly, the Committee

expects the Administration to live up to its current plan and withdraw American forces not later than June of next year. The Committee believes that should events require any change involving a

further extension of the U.S. deployment, the Administration

should and must seek the approval of the Congress. The Committee

expresses its intent to revisit this issue during its consideration of

fiscal year 1998 appropriations measures in the months ahead.

In the interim, the Committee directs the President to provide

reports on Bosnia to the Congress every three months following enactment of this bill. The reports should include, but not be limited

to: current and projected U.S. and allied force deployments (both

in-country and in support of the operation outside of Bosnia), and

the costs associated with U.S. operations; status reports on efforts

being made within NATO to achieve consensus on a June 1998

withdrawal date; an assessment of what, if any, follow-on international force will be required after U.S. withdrawal and the degree to which U.S. support is envisioned for such an effort (in both

military and financial terms); and the progress being made toward

total withdrawal. An assessment of the achievements being made

in the implementation of the provisions of the Dayton accords

should also be included in the reports.
33

SUMMARY OF COMMITTEE RECOMMENDATIONS

In title II, chapter 1, the Committee recommends a total of

$2,033,400,000 in new budget authority, a reduction of $64,814,000

from the supplemental request.

The Committee recommendation includes $1,910,400,000 for contingency operations, a net reduction of $95,814,000 from the request reflecting fact-of-life changes in funding requirements which

have occurred subsequent to transmittal of the supplemental proposal. Taking into account these changes, the Committee recommendation fully funds all contingency operation requirements

identified by the Department of Defense. The Committee does not

agree with the supplemental proposal to fund both military personnel and operation and maintenance requirements through the

‘‘Overseas Contingency Operations Transfer Fund,’’ but instead

provides for military personnel costs through the Military Personnel appropriations accounts as was done in the fiscal year 1997 Defense Appropriations Act.

The Committee recommendation also fully funds the requested

amounts for the Reserve Mobilization Income Insurance Fund and

OPLAN 34A/35 P.O.W. payments. Finally, in title II, chapter 1 of

the Committee bill there are three general provisions intended to

redress current funding shortfalls: Section 2102 provides

$23,000,000 in transfers to cover the costs incurred at certain Marine Corps facilities due to recent natural disasters; Section 2103

provides $21,000,000 for direct patient care at military treatment

facilities; and Section 2104 provides $10,000,000 for additional

force protection and counter-terrorism initiatives.

The new budget authority made available in this title for the Department of Defense is fully offset by rescissions totaling

$2,033,867,000 from funds made available in previously enacted

Defense Appropriations and Military Construction Acts. These rescissions are in title II, chapter 2 of the Committee bill and are described in a subsequent section of this report.

A more detailed description of the Committee’s adjustments to

the President’s supplemental requests follows:

CONTINGENCY OPERATIONS

The following describes the Committee’s recommendations by operation, and also by the relevant appropriations title or account.

Bosnia.—The total amount requested for operations supporting

the Bosnia operation was $1,496,000,000. The Committee recommends $1,336,200,000, a reduction of $159,800,000. This reduction is made due to overestimates in the request for the amount of

contractor logistics support (LOGCAP) provided to troops deployed

in-country, overstated operating tempo requirements, and reduced

military personnel requirements involving the Reserve components.

Southwest Asia.—The request for operations in Southwest Asia

(including enforcing the no-fly zones in northern and southern Iraq

and the redeployment of U.S. forces following the Khobar Towers

bombing) totals $498,200,000. The Committee recommends

$562,200,000, an increase of $64,000,000. Although funds were provided for operations in Southwest Asia in the fiscal year 1997 Defense Appropriations Act, a significant portion of those funds were
34

transferred to fund the Bosnian deployment after its extension beyond December 1996. Thus funds are now required to fund ongoing

operations in the Persian Gulf region. Funds provided above the request include $28,000,000 for higher than projected Enhanced

Southern Watch costs and $36,000,000 for enhanced force protection.

MILITARY PERSONNEL

The supplemental request included $360,100,000 for pay and allowances for active and reserve personnel in support of the Bosnia

and Southwest Asia operations. The Committee recommends

$344,100,000, a reduction of $16,000,000 from the request as noted

above, because of reduced participation by the Reserve Components. These funds provide for payment of Imminent Danger Pay,

Family Separation Allowance, Foreign Duty Pay, and Basic Allowance for Subsistence.

OPERATION AND MAINTENANCE

The Committee recommends an appropriation of $1,566,300,000

for operation and maintenance expenses, including costs of the Defense Health Program and for drawdown recovery, to be included

in the ‘‘Overseas Contingency Operations Transfer Fund’’. The recommendation is a decrease of $79,800,000 below the amount requested and represents fact-of-life changes in requirements as described above.

RESERVE MOBILIZATION INCOME INSURANCE FUND

The supplemental request included $72,000,000 for the Reserve

Mobilization Income Insurance Fund. The National Defense Authorization Act for Fiscal Year 1996 established the fund and designed this insurance program to help mitigate economic losses for

Reservists when they are involuntarily called to active duty. The

Committee was never informed by the Department or asked to participate in any discussions on the merits of this program, even

though the law specifies a ‘‘special’’ appropriation to cover any unfunded liability.

The Committee is distressed to learn that from the beginning,

numerous problems arose which risked the solvency of the fund.

The General Accounting Office and the Office of the Inspector General are currently investigating to see if this program has been

properly administered and implemented.

The fund is not actuarially sound, and, as noted, the law requires

a ‘‘special’’ appropriation to cover any unfunded liability. Therefore,

the Committee recommends $72,000,000, the budget request, to

make this insurance fund solvent. After receiving the reports of the

General Accounting Office and DOD’s Inspector General, Congress

will address the future of the Reserve Mobilization Income Insurance Fund.

OPLAN 34A/35 P.O.W. PAYMENTS

The supplemental request included $20,000,000 and a new appropriations paragraph in the Operation and Maintenance title for

payments to certain South Vietnamese commandos (or their survi-
35

vors) who, while conducting operations for the United States, were

captured and incarcerated by the Democratic Republic of Vietnam

and have not received payment for their time spent in captivity.

The Committee recommends the requested amount.

GENERAL PROVISIONS, CHAPTER 1

Section 2101 of the General Provisions has been included which

limits the availability of funds provided in this title to the current

fiscal year unless otherwise specified.

Section 2102 has been included which provides a transfer of $23,000,000 of available Marine Corps funding (from revised inflation estimates and foreign currency rates, as well as unobligated

balances expected to expire at the end of this fiscal year) to Operation and Maintenance, Marine Corps, to pay for repairs to real

property and facilities damaged by Hurricanes Fran and Bertha

last year, and from flooding in January 1997.

Section 2103 has been included which provides an additional $21,000,000 for the Defense Health Program, only for direct care

of military service members and dependents at military treatment

facilities.

Section 2104 has been included which provides an additional $10,000,000 for Operation and Maintenance, Defense-Wide, only for

force protection and counter-terrorism initiatives. These funds are

required to meet requirements at a number of worldwide locations

identified in vulnerability assessments conducted by the Joint

Staff. The Committee directs these funds be used for physical security equipment such as surveillance and intrusion detection systems, personnel and vehicle armor, and x-ray, metal, explosive, and

chem-bio detectors. Funds may also be used for physical security

site improvements including perimeter and entrance barriers,

gates, fencing and lighting, and other items identified in vulnerability assessments which in the view of the Chairman of the Joint

Chiefs of Staff require immediate attention.

Section 2105 has been included which places limitations on certain Department of the Navy personnel and budget practices. The

Committee is disturbed to find that the Navy’s Financial Management/Comptroller organization has ignored reprogramming procedures defined in the Department of Defense Financial Management

Regulation, has become a major impediment to timely obligation of

funds for many high priority programs which the Navy had requested be included in Appropriations acts, and has ignored clear

Congressional direction and intent concerning a number of programs of great importance to the nation. The Committee believes

a major reason for this is that the Navy Financial Management/

Comptroller organization has become too large and bureaucratic,

making it unresponsive to the Congress, the Office of the Secretary

of Defense, and the Navy itself. For these reasons, the Committee

designates all funds appropriated for staffing of the Navy Financial

Management/Comptroller organization to be of special interest

under procedures set forth in the DoD Financial Management Regulation. Section 2105 of this bill is intended to facilitate enhanced

Congressional oversight of the large annual expenditure of funds

by this organization. The provision also suspends the authority to

reprogram Navy funds on other than a prior approval basis due to
36

the Navy’s apparent misunderstanding of Defense regulations and

Congressional policy and intent.

The following table provides details of the supplemental appropriations in title II, chapter 1 of the bill:

Fiscal Year 1997 DOD Supplemental

[In millions of dollars]

Request Committee recommendation Change

Contingency Operations

Bosnia:

Military Personnel:

Army ........................................................................................... $318.0 $302.0 ¥$16.0

Navy ........................................................................................... 4.9 4.9 ........................

Marine Corps ............................................................................. 0.3 0.3 ........................

Air Force ..................................................................................... 22.5 22.5 ........................

Total Military Personnel ........................................................ 345.7 329.7 ¥16.0

Operation and maintenance:

Army ........................................................................................... 629.3 504.5 ¥124.8

Navy ........................................................................................... 92.7 82.7 ¥10.0

Marine Corps ............................................................................. 1.5 1.5 ........................

Air Force ..................................................................................... 247.8 247.8 ........................

Defense-Wide ............................................................................. 157.2 148.2 ¥9.0

Total Operation and maintenance ........................................ 1,128.5 984.7 ¥143.8

Defense Health Program ..................................................................... 21.8 21.8 ........................

Total Bosnia—All Appropriations .................................................. 1,496.0 1,336.2 ¥159.8

Southwest Asia:

Military Personnel:

Army ........................................................................................... 4.8 4.8 ........................

Navy ........................................................................................... 3.0 3.0 ........................

Air Force ..................................................................................... 6.6 6.6 ........................

Total Military Personnel ........................................................ 14.4 14.4 ........................

Operation and maintenance:

Navy ........................................................................................... 83.1 103.1 +20.0

Air Force ..................................................................................... 389.6 434.6 +45.0

Defense-Wide ............................................................................. 9.2 8.2 ¥1.0

Navy Reserve ............................................................................. 0.5 0.5 ........................

Total Operation and maintenance ........................................ 482.4 546.4 +64.0

Defense Health Program ..................................................................... 1.4 1.4 ........................

Total Southwest Asia—All Appropriations .................................... 498.2 562.2 +64.0

Drawdown Recovery:

Operation and maintenance, Air Force .............................................. 12.0 12.0 ........................

Total—Contingency Operations ............................................ 2,006.2 1,910.4 ¥95.8

OPLAN 34A/35 P.O.W. Payments ................................................................. 20.0 20.0 ........................

Reserve Mobilization Income Insurance Fund ............................................. 72.0 72.0 ........................

Defense Health Program .............................................................................. ........................ 21.0 +21.0

Operation and Maintenance, Defense-Wide (Force Protection) ................... ........................ 10.0 +10.0

Grand total ..................................................................................... 2,098.2 2,033.4 ¥64.8
37

SOUTH KOREAN AIR DEFENSE

The Committee voices its deep concern over the possibility that

South Korea may procure Russian S300 systems for air defense as

opposed to the U.S. Patriot system. The Patriot possesses superior

radar and engagement capabilities and requires less manpower to

operate and maintain. Most importantly, acquisition of the Patriot

ensures interoperability with other assets assigned to U.S. Forces,

Korea enhancing the overall safety and combat effectiveness of U.S.

and allied forces. Considering the almost half century relationship

between our two countries, and the closeness with which our troops

train together, it would be most unfortunate for our South Korean

allies to procure a non-U.S. air defense system.

AIRBORNE MINE COUNTERMEASURES

The National Defense Authorization Act for fiscal year 1997 directed the Navy to conduct a competitive evaluation of candidate

technologies (Magic Lantern and ATD-111) for an active Navy airborne laser mine detection system. The Act further directed that

the competitive evaluation be conducted no later than July 1, 1997

and that a procurement plan be established for the winning system. In August, 1996 the Under Secretary of the Navy informed

the Committee that the Navy’s intended approach is consistent

with the Authorization Conference Report. Subsequently, an additional $12,000,000 was provided in the fiscal year 1997 Department

of Defense Appropriations Act to conduct the competitive flyoff.

The Committee believes it is critically important to provide the

active Naval forces with an airborne laser mine detection and classification system as soon as possible to effectively counter floating

and shallow-moored mines, a capability which the active Navy does

not now possess. The Committee also believes that the competitive

flyoff must be conducted on time, as the Under Secretary committed to last year, in order to allow the congressional defense committees to consider the result during deliberations on the fiscal year

1998 Department of Defense budget. The Committee directs that

the competitive flyoff be conducted and concluded by July 1, 1997

and that the Secretary of the Navy report the results and his recommended procurement plan to the congressional defense committees by July 21, 1997.

CHAPTER 2

RESCISSIONS

COMMITTEE RECOMMENDATIONS

The supplemental request for the Department of Defense included one proposed general provision and two proposed rescissions.

The general provision requested by the President would cancel

$4,800,000,000 of unidentified appropriations from the fiscal year

1997 Defense Appropriations and Military Construction Acts, and

grant the Secretary of Defense authority to determine which programs shall be canceled within this amount. The Committee does

not recommend adoption of this provision, but instead proposes re-
38

scissions totaling $2,033,867,000 contained in five general provisions in title II, chapter 2 of the Committee bill. This amount completely offsets the funding provided for the Department of Defense

in chapter 1 of this title.

These rescissions include savings resulting from updated fiscal

year 1997 inflation estimates and foreign currency exchange rates,

unexpired balances of budget authority which are expected to lapse

at the end of the current fiscal year, and program-specific rescissions targeted at nearly 60 defense programs or activities reflecting

changes in program status, contract or cost savings, and instances

where available funding is excessive.

The supplemental request also included two proposed rescissions,

totaling $72,000,000, as an offset for the Reserve Mobilization Income Insurance Fund mentioned above. The Committee does not

recommend a rescission of $62,000,000 of fiscal year 1997 funds

made available for ‘‘National Guard and Reserve Equipment,’’ as

proposed by the President. However, the Committee does agree

with the rescission of $10,000,000 from fiscal year 1997 ‘‘Operation

and Maintenance, Defense-Wide’’ funds as proposed by the President and has included this rescission in Section 2204.

GENERAL PROVISIONS, CHAPTER 2

Section 2201 has been included which rescinds $307,000,000 of

fiscal year 1997 defense appropriations which are available as a result of updated inflation estimates. The provision requires that reductions within appropriation accounts must be applied in equal

proportion to each budget activity, activity group, and subactivity

group. The Committee directs that such reductions be made to total

funding available in all specified fiscal year 1997 budget activities,

activity groups, and subactivity groups as of the date of enactment

of this Act. This requirement may not be interpreted to apply only

to unobligated balances in those activities, activity groups, and subactivity groups. In no case may a budget activity, activity group,

or subactivity group for which additional funds were appropriated

in fiscal year 1997 above what was originally requested by the

President be decreased by a higher proportion than items which

were in the original budget request. The Department of Defense

shall propose a formal reprogramming request to the congressional

defense committees should a situation arise where such funding reductions would jeopardize national security or cause serious harm

to financial interests of the government.

Section 2202 has been included which rescinds $308,000,000 of

fiscal year 1997 defense appropriations which are available as a result of favorable changes in foreign currency exchange rates.

Section 2203 has been included which rescinds $246,367,000 of

unobligated funds made available in previous Department of Defense Appropriations Acts which, according to the Comptroller of

the Department of Defense, are expected to expire at the end of the

current fiscal year.

Section 2204 has been included which rescinds $992,500,000 of

funds made available in previous Defense Appropriations Acts, as

specified in the table below:
39

Rescissions Recommended in the Bill

[Department of Defense—Military]

Department and activity Amounts

Fiscal year 1994:

Shipbuilding and Conversion, Navy:

Service Craft ............................................................................ ¥$28,700,000

Total fiscal year 1994 ....................................................... ¥28,700,000

Fiscal year 1995:

Aircraft Procurement, Air Force:

JSTARS, Advanced Procurement ........................................... ¥14,400,000

Missile Procurement, Air Force:

Missile Replacement Equipment ............................................ ¥4,000,000

Total fiscal year 1995 ....................................................... ¥18,400,000

Fiscal year 1996:

Aircraft Procurement, Army:

Blackhawk, Advanced Procurement ...................................... ¥5,000,000

Spares ....................................................................................... ¥8,000,000

Avionics Support Equipment .................................................. ¥5,000,000

Subtotal ............................................................................. ¥18,000,000

Procurement of Weapons and Tracked Combat Vehicles, Army:

Carrier Mods ............................................................................ ¥3,000,000

Bradley Fighting Vehicle System ........................................... ¥10,000,000

Weapons/Combat Vehicle ........................................................ ¥13,000,000

Subtotal ............................................................................. ¥26,000,000

Procurement of Ammunition, Army:

Provision of Industrial Facilities ............................................ ¥8,000,000

Layaway Industrial Facilities ................................................ ¥6,000,000

Ammunition Base .................................................................... ¥20,000,000

Subtotal ............................................................................. ¥34,000,000

Other Procurement, Navy:

Shipboard Tactical Communications ..................................... ¥3,000,000

Aircraft Procurement, Air Force:

JSTARS .................................................................................... ¥25,000,000

F–16 .......................................................................................... ¥12,000,000

F–16 Post Production Support ............................................... ¥15,000,000

Subtotal ............................................................................. ¥52,000,000

Other Procurement, Air Force:

Strategic C2 ............................................................................. ¥10,000,000

Procurement of Ammunition, Air Force:

CBU–87 .................................................................................... ¥21,100,000

Procurement, Defense-Wide:

DISA/Defense Message System .............................................. ¥12,000,000

Major Equipment .................................................................... ¥10,700,000

SDIO Major Equipment .......................................................... ¥12,100,000

Subtotal ............................................................................. ¥34,800,000

Research, Development, Test and Evaluation, Navy:

MK–48 ADCAP (CBASS–New Start) .................................... ¥4,000,000
40

[Department of Defense—Military]—Continued

Department and activity Amounts

Standard Missile Improvements (LASM–New Start) .......... ¥500,000

Subtotal ............................................................................. ¥4,500,000

Research, Development, Test and Evaluation, Air Force:

Night Precision Attack ............................................................ ¥2,000,000

Research, Development, Test and Evaluation, Defense-Wide:

University Research ................................................................ ¥9,200,000

Defense Reinvestment ............................................................. ¥6,200,000

Medical Electron Laser ........................................................... ¥3,300,000

High Performance Computing ................................................ ¥1,600,000

Theater High Altitude Area Defense ..................................... ¥40,000,000

NATO Research and Development ........................................ ¥5,200,000

Office of Secretary of Defense Studies ................................... ¥5,700,000

Subtotal ............................................................................. ¥71,200,000

Developmental Test and Evaluation, Defense:

Central Test and Evaluation .................................................. ¥2,200,000

Foreign Cooperative Testing .................................................. ¥6,200,000

Test and Evaluation ................................................................ ¥3,800,000

Subtotal ............................................................................. ¥12,200,000

Chemical Agents and Munitions Destruction, Defense:

Procurement ............................................................................. ¥22,000,000

Total fiscal year 1996 ....................................................... ¥310,800,000

Fiscal year 1997:

Military Personnel, Air National Guard:

Endstrength Pricing ................................................................ ¥7,600,000

Operation and Maintenance, Army:

Capital Fund Transfer ............................................................ ¥17,000,000

Operation and Maintenance, Defense-Wide:

Office of the Secretary of Defense .......................................... ¥10,000,000

Procurement of Ammunition, Army:

Armament Retooling and Manufacturing Support ............... ¥10,000,000

Other Procurement, Army:

Family of Medium Tactical Vehicles ...................................... ¥6,000,000

Aircraft Procurement, Navy:

F/A–18 E/F, Advanced Procurement ...................................... ¥48,000,000

Aircraft Procurement, Air Force:

F–15 .......................................................................................... ¥35,000,000

Missile Procurement, Air Force:

Medium Launch Vehicles ....................................................... ¥5,000,000

Titan IV .................................................................................... ¥115,000,000

Subtotal ............................................................................. ¥120,000,000

Research, Development, Test and Evaluation, Army:

C–3 Advanced Technology ...................................................... ¥7,000,000

Night Vision Systems—Eng Dev ............................................ ¥5,000,000

155 mm Light Weight Howitzer ............................................. ¥3,000,000

Subtotal ............................................................................. ¥15,000,000

Research, Development, Test and Evaluation, Navy:

Submarine Technology ............................................................ ¥12,000,000

Tomahawk ................................................................................ ¥10,000,000

MK–48 ADCAP (CBASS–New Start) .................................... ¥1,000,000
41

[Department of Defense—Military]—Continued

Department and activity Amounts

Standard Misssile Improvements (LASM–New Start) ......... ¥5,500,000

Subtotal ............................................................................. ¥28,500,000

Research, Development, Test and Evaluation, Air Force:

AWACs ..................................................................................... ¥25,000,000

Threat Simulator Development .............................................. ¥5,000,000

Classified .................................................................................. ¥200,000,000

WCMD ...................................................................................... ¥3,500,000

JDAM ....................................................................................... ¥4,000,000

Subtotal ............................................................................. ¥237,500,000

Research, Development, Test and Evaluation, Defense-Wide:

Dual-Use Funds (COSSI) ........................................................... ¥100,000,000

Total fiscal year 1997 ....................................................... ¥634,600,000

Total fiscal years 1994/1995/1996/1997 .......................... ¥992,500,000

F/A–18 E/F ADVANCE PROCUREMENT

In Section 2204 the Committee recommends a rescission of

$48,000,000 from amounts appropriated for fiscal year 1997 for

F/A–18 E/F advance procurement. In fiscal year 1997 the Administration requested and the Congress appropriated advance procurement funds for 24 F/A–18 E/F aircraft in fiscal year 1998. The fiscal year 1998 President’s budget requests only 20 aircraft. Therefore, $48,000,000 of fiscal year 1997 funds are no longer needed for

the purpose for which they were appropriated. The Committee

makes the recommendation to rescind $48,000,000 of excess advance procurement funds without prejudice to the F/A–18 E/F program.

TITAN IV

In Section 2204 the Committee recommends a rescission of

$115,000,000 from amounts appropriated for fiscal year 1997 for

the Titan IV missile program.

It is the Committee’s understanding that funds excess to program requirements are available due to the pending reimbursement of Air Force funds expended on NASA’s Cassini mission. Additionally, recent changes in the Department of Defense’s launch

manifest make certain requalification efforts and long lead acquisition unnecessary. The Committee makes this recommendation

without prejudice to the Titan IV program.

THEATER HIGH ALTITUDE AREA DEFENSE

In Section 2204 the Committee recommends a rescission of

$40,000,000 from the amounts appropriated for fiscal year 1996 for

the Theater High Altitude Area Defense (THAAD) program. The

Committee strongly supports the THAAD program, as evidenced by

its having appropriated over $1.1 billion for this effort over the

past two years, including an increase over the budget of

$140,000,000 for fiscal year 1997. However, the program has experienced significant delays due to a series of test failures. Because

the program has slipped by 13 months, the Committee proposes to
42

rescind $40,000,000 in unobligated fiscal year 1996 funds which

are now expected to lapse at the end of the fiscal year. This rescission should not affect the ability of the program to deploy a User

Operational Evaluation System (UOES) by 1999.

DUAL-USE APPLICATIONS PROGRAM

In Section 2204 the Committee recommends a rescission of

$100,000,000 from the amounts appropriated in fiscal year 1997 for

the Dual-Use Applications Program. The funds appropriated in

Section 5803 of Public Law 104–208 were intended for the Dual

Use Applications Program as defined in Section 203 of Public Law

104–201. However, the Department of Defense has initiated a new

program, the Commercial Operations and Support Savings Initiative (COSSI), which is not related to the program for which funds

were appropriated. The COSSI program may have merit. However,

this new start program has never been fully justified or properly

requested by the Department. Therefore, the Committee recommends rescission of these funds.

UNAPPROVED NEW START PROGRAMS

The Committee has learned the Navy recently initiated two costly programs that had not been previously explained to nor approved by Congress. One program will cost nearly one-half billion

dollars to complete. The Committee discourages initiation of new

programs through reprogrammings or reallocations made outside of

the normal appropriations process except in extraordinary circumstances, for example, those involving pressing issues of safety

and national security. Long-standing procedures have been in place

to provide prior Congressional notification and approval for new

programs when an urgent requirement warrants such exceptional

treatment. The Committee is dismayed that the Navy would ignore

these procedures and expose taxpayers to large expenses without

public or Congressional review.

The Secretary of the Navy is directed to report to the Committee

by May 15, 1997 on the circumstances surrounding this breach in

fundamental budget procedure and the actions that will be taken

to see that no further breakdowns occur. In Section 2204, the Committee bill rescinds the funding for the two new start programs and

the Committee will consider them for the first time as part of the

fiscal year 1998 appropriations process. Should such abuses continue, the Committee will have no choice but to consider further restrictions on the reallocation of funds.

CLASSIFIED PROGRAMS

Details of the Committee’s recommendations are discussed in the

classified annex to this report.

MILITARY CONSTRUCTION

(RESCISSIONS)

Section 2205 recommends rescissions of fiscal year 1996 appropriated amounts totaling $180,000,000 to offset unbudgeted costs

associated with contingency operations. Of this total, $152,000,000
43

is rescinded to reflect savings from revised economic assumptions,

as follows:

Military Construction, Air Force Reserve ............................................ $5,000,000

Military Construction, Defense-wide .................................................... 13,000,000

Base Realignment and Closure Account, Part II ................................ 35,391,000

Base Realignment and Closure Account, Part III ............................... 75,638,000

Base Realignment and Closure Account, Part IV ............................... 22,971,000

Total ............................................................................................. 152,000,000

In addition, $28,000,000 is rescinded to reflect savings from program execution, as follows:

Military Construction, Defense-wide [Defense Logistics Agency] ...... $19,000,000

Military Construction, Defense-wide [Defense Medical Facilities] .... 9,000,000

Total ......................................................................................... 28,000,000

The Committee directs that these rescissions reflecting savings

from revised economic assumptions and program execution shall

not result in the delay or reduction in scope of any project for

which funds have been appropriated.

CHAPTER 3

GENERAL PROVISIONS

MARINE CORPS FAMILY HOUSING

Marine Corps Base Camp Lejeune, North Carolina and Marine

Corps Air Station Cherry Point, North Carolina sustained substantial damage to family housing units as a result of Hurricane Bertha

[July 5–14, 1996] and Hurricane Fran [August 24–September 6,

1996]. Necessary repairs totaling $20,420,000 have been accomplished by deferring the performance of other programmed family

housing work at a number of installations.

In section 2301, the Committee recommends project cancellation

and rescission of $6,480,000 from funds appropriated in fiscal year

1995 for a bachelor enlisted quarters project at Norfolk, Virginia.

This project is no longer required due to a net reduction in Marine

Corps personnel in Norfolk as a result of personnel transfers to

Camp Lejeune. Further, in section 2302 the Committee recommends appropriation of $6,480,000 to partially reimburse the

Family Housing, Navy and Marine Corps account for hurricane repair Operation and Maintenance costs that have been absorbed.

This appropriation is authorized by 10 U.S.C. 2854, which provides

authority for the restoration or replacement of damaged or destroyed facilities. In addition, if any foreign currency fluctuation

savings are realized within the Family Housing, Navy and Marine

Corps account, the Committee directs the Navy to further reimburse the Marine Corps for hurricane repair costs that have been

absorbed.
44

TITLE III

GENERAL PROVISIONS—THIS ACT

BILATERAL ECONOMIC ASSISTANCE

ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE FORMER

SOVIET UNION

PROGRESS TOWARD ECONOMIC REFORM AND ELIMINATION OF

CORRUPTION IN UKRAINE

The Committee is recommending a conditional Presidential waiver of earmarks with regard to Ukraine under the heading, ‘‘Assistance for the New Independent States of the Former Soviet Union’’

in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997.

United States support for market reform and rule of law in

Ukraine is not well served by limitations on the President’s ability

to link assistance to progress by the Government of Ukraine. The

parliament of Ukraine’s failure to enact needed reform legislation

and the recent resignation of reform leaders from the Government

mark a setback for reform since the 1997 Act was signed in September 1996.

The Committee strongly recommends that the Secretary of State

make use of the flexibility provided by the waiver to assist American investors in Ukraine who are adversely affected by arbitrary,

illegal, or corrupt actions by officials in Ukraine.

AGENCY FOR INTERNATIONAL DEVELOPMENT

NEW MANAGEMENT SYSTEM

In House Report No. 104–600, the Committee on Appropriations

requested the Inspector General of the Agency for International

Development to report regularly on the implementation of the New

Management System (NMS) of the Agency for International Development. The latest audit report of the Inspector General indicates

that the NMS is not operating effectively; indeed, the report states

that, as of March of 1997, ‘‘none of the NMS subsystems was fully

operational.’’ In addition, the report concludes: ‘‘USAID has not implemented the disciplined IRM processes that are critical to success. USAID’s decision to deploy NMS before it was capable of operating effectively has disrupted operations, increased vulnerability

to fraud and abuse, wasted resources, and created morale problems. By diverting resources to fix numerous software defects, premature deployment has postponed efforts to correct the underlying

design deficiencies that will continue to limit NMS from operating

effectively.’’ (Audit Report No. A–000–97–004–P, March 31, 1997.)

The Inspector General made five recommendations to USAID, including that operations of the accounting subsystem be suspended

‘‘until technical deficiencies are corrected, implementation issues

are resolved, and testing shows the system—or a cost-effective subset of the system—operates effectively and complies with federal financial management system requirements.’’ The Committee expects USAID to comply at the earliest possible time with the In-
45

spector General’s recommendations. In that regard, the agency

should report within the next thirty days on the steps it is taking

to implement these recommendations. The failure to take corrective

action in the near future will be a major consideration in future decisions by the Committee on support for USAID’s operating expenses.
(46)

CHANGES IN THE APPLICATION OF EXISTING LAW

Pursuant to clause 3 of rule XXI of the Rules of the House of

Representatives, the following statements are submitted describing

the effect of provisions in the accompanying bill which directly or

indirectly change the application of existing law.

Rescissions of previously appropriated funds have been included

in several instances throughout the bill (see the table of rescissions

included pursuant to clause 1(b) of rule X of the Rules of the House

‘‘Rescissions’’).

Fund for Rural America.—Provides that of the funds made available to the Secretary on January 1, 1997 for the Fund for Rural

America, not more than $80 million shall be available. The bill also

provides that the Secretary can use any of these funds for the WIC

program.

Emergency Conservation Program.—Provides the Secretary of Agriculture the authority to use these funds for expenses related to

livestock carcass removal.

Tree Assistance Program.—Provides $9 million to replace or rehabilitate trees and vineyards damaged by natural disasters.

Conservation Reserve Program.—Provides that none of the funds

made available to the Secretary shall be used to enroll more than

14 million acres in the Conservation Reserve Program.

Rural Housing Service.—Provides that notwithstanding sec. 520

of the Housing Act of 1949, the College Station area of Pulaski

County, Arkansas shall be eligible for loans and grants.

Special Supplemental Nutrition Program for Women, Infants,

and Children (WIC).—Provides that the Secretary shall allocate

funds through any means he deems necessary.

The Emergency Food Assistance Program.—Provides that the

amount available through sec. 27(a) of the Food Stamp Act shall

not exceed $80 million.

Export Credit.—Provides that none of the funds in Public Law

104–180 shall be used to carry out an export credit guarantee program in excess of $3.5 billion.

Export Enhancement Program.—Provides that none of the funds

in Public Law 104–180 shall be used to carry out an export enhancement program in excess of $10,000,000.

Under Department of Commerce, National Institute of Standards

and Technology, Industrial Technology Services, language is included designating not to exceed $35,000,000 as the amount available for new awards out of the total funding provided for the Advanced Technology Program under Public Law 104–208.

River Basin Commissions.—Language is included providing that,

beginning in fiscal year 1997 and thereafter, the United States

members and the alternate members appointed under the Susquehanna River Basin Compact (Public Law 91–575), and the Delaware River Basin Compact (Public Law 87–328), shall be officers
47

of the U.S. Army Corps of Engineers, who hold Presidential appointments as Regular Army officers with Senate confirmation, and

who shall serve without additional compensation.

Endangered Species Act.—Language is included amending Public

Law 87–328 (75 Stat. 688, 691) to provide that the United States

member of the Delaware River Basin Commission shall serve ‘‘at

the pleasure of the President’’ rather than ‘‘during the term of office of the President’’.

Language is included which provides that the policy issued on

February 19, 1997, by the U.S. Fish and Wildlife Service implementing emergency provisions of the Endangered Species Act in 46

counties in California shall apply to all counties declared Federal

disaster areas in 1997 and to repair of flood control facilities in response to an imminent threat to human life and property and shall

remain in effect until the Assistant Secretary of the Army for Civil

Works determines that 100 percent of emergency repairs have been

completed, but shall not remain in effect later than December 31,

1998.

The bill provides a Presidential waiver of several earmarks of assistance to Ukraine under the heading, ‘‘Assistance for the New

Independent States of the Former Soviet Union’’ in the Foreign Operations, Export Financing, and Related Programs Appropriations

Act, 1997.

Language is included in Title I, chapter 4, under Bureau of Land

Management, Oregon and California Grant Lands, which provides

that funds made available in Public Law 104–134 shall be used for

current emergency disaster relief.

Language is included in Title I, chapter 4, under General Provision, Department of the Interior and Related Agencies, amending

the recreational fee demonstration program which was enacted in

fiscal year 1996.

Language has been included under Title II, Chapter 1—Department of Defense—Military to add DoD working capital fund accounts to ‘‘Overseas Contingency Operations Transfer Fund’’.

A new appropriation paragraph ‘‘OPLAN 34A/35 P.O.W. Payments’’ has been included under Title II, Chapter 1—Department

of Defense—Military that provides funds to make payments to eligible South Vietnamese individuals or their survivors who were

captured or incarcerated during the Vietnam conflict.

Language has been included (Section 2102) under Title II, Chapter 1—Department of Defense—Military which provides a transfer

of funds to ‘‘Operation and Maintenance, Marine Corps’’ for hurricane and flood damages.

Language has been included (Section 2105) under Title II, Chapter 1—Department of Defense—Military which places restrictions

on certain personnel practices and budget reprogramming procedures of the Department of the Navy unless prior approval is

granted by the Committees on Appropriations of the House and

Senate.

The bill includes language regarding the administration of the

Emergency relief program and the federal-aid highway obligation

limitation.
48

The bill also includes language that make emergency relief funding available for the repair or reconstruction of CA Highway 1 at

Devil’s Slide in San Mateo County.

The bill includes provisions that correct enrolling errors in Public

Law 104–205.

The bill includes language that makes available contract authority for programs under section 410 of title 23 U.S.C. and section

30308(a) of title 49, U.S.C.

Language is included under the Department of Housing and

Urban Development, preserving existing housing investment,

which authorizes and appropriates funds for a preservation project

in Syracuse, New York.

Language is included under Department of Housing and Urban

Development, drug elimination grants for low-income housing,

which provides for the appropriation of $30,200,000 by transfer

from the homeownership and opportunity for people everywhere

grants program.

Language is included under the Department of Veterans Affairs,

administrative provision, which authorizes the parking structure

component of the ambulatory care addition project at the Cleveland

VA Medical Center.

Language is included under the Federal Emergency Management

Agency, national flood insurance fund, which changes the waiting

period before which flood insurance takes effect after purchase

from 30 days to 15 days.
(49)

COMPLIANCE WITH RULE XIII—CLAUSE 3

In compliance with clause 3 of rule XIII of the Rules of the House

of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted

is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman):

The accompanying bill would amend Section 2.2 of Public Law

87–328, the Delaware River Basin Compact, as follows:

COMMISSION MEMBERSHIP. The commission shall consist of the

Governors of the signatory states, ex officio, and one commissioner

to be appointed by the President of the United States to serve

øduring the term of office of the President¿ at the pleasure of the

President.

Section 315 (c) (1), subsections (A) and (B), under the heading

‘‘Title III—General Provisions’’ in section 101(c) of Public Law 104–

134 is amended as follows:

(A) Of the amount in excess of ø104%¿ 100% of the amount collected in fiscal year ø1995¿ 1994, øand thereafter annually adjusted upward by 4%,¿ eighty percent to a special account in the

Treasury for use without further appropriation, by the agency

which administers the site, to remain available for expenditures in

accordance with paragraph (2)(A).

(B) Of the amount in excess of ø104%¿ 100% of the amount collected in fiscal year ø1995¿ 1994, øand thereafter annually adjusted upward by 4%,¿ twenty percent to a special account in the

Treasury for use without further appropriation, by the agency

which administers the site, to remain available for expenditure in

accordance with paragraph (2)(B).

The accompanying bill would amend the Department of Transportation and Related Agencies Appropriations Act, 1997, as follows:

DEPARTMENT OF TRANSPORTATION AND RELATED

AGENCIES APPROPRIATIONS ACT, 1997 (Pub. L. 104–205)

* * * * * * *

TITLE I

* * * * * * *

FEDERAL TRANSIT ADMINISTRATION

* * * * * * *
50

DISCRETIONARY GRANTS

(LIMITATION ON OBLIGATIONS)

(HIGHWAY TRUST FUND)

None of the funds in this Act shall be available for the implementation or execution of programs the obligations for which are in excess of $1,900,000,000 in fiscal year 1997 for grants under the contract authority in 49 U.S.C. 5338(b): Provided, That there shall be

available for fixed guideway modernization, $760,000,000; there

shall be available for the replacement, rehabilitation, and purchase

of buses and related equipment and the construction of bus-related

facilities, $380,000,000; and, notwithstanding any other provision

of law, except for fixed guideway modernization projects,

$8,890,000 made available under Public Law 102–240 and Public

Law 102–143 under ‘‘Federal Transit Administration, Discretionary

Grants’’ for projects specified in those Acts or identified in reports

accompanying those Acts, not obligated by September 30, 1996; together with, notwithstanding any other provision of law, $744,000

funds made available for the ‘‘New Bedford and Fall River Massachusetts commuter rail extension’’ under Public Law 103–331; together with, notwithstanding any other provision of law,

$47,322,000 funds made available for the ‘‘Chicago Central Area

Circulator Project’’ in Public Law 103–122 and Public Law 103–

331, shall be available for new fixed guideway systems together

with the $760,000,000 made available for new fixed guideway systems in this Act, to be available as follows:

$6,390,000 for the Alaska-Hollis to Ketchikan ferry project;

ø$661,000,000¿ $661,000 for the DeKalb County, Georgia

light rail project:

* * * * * * *

TITLE III—GENERAL PROVISIONS

(INCLUDING TRANSFERS OF FUNDS)

* * * * * * *

SEC. 325. Notwithstanding 31 U.S.C. 3302, funds received by the

Bureau of Transportation Statistics from the sale of data products,

for necessary expenses incurred pursuant to the provisions of section 6006 of the Intermodal Surface Transportation Efficiency Act

of 1991, may be credited to the Federal-aid highways account for

the purpose of reimbursing the Bureau for such expenses: Provided, That such funds shall not be subject to the obligation limitation for Federal-aid highways and highway safety construction.

øThat in addition to amounts otherwise provided in this Act, not

to exceed $3,100,000 in expenses of the Bureau of Transportation

Statistics necessary to conduct activities related to airline statistics

may be incurred, but only to the extent such expenses are offset

by user fees charged for those activities and credited as offsetting

collections.¿

* * * * * * *

The accompanying bill would amend section 410 of Title 23,

United States Code, as follows:
51

SECTION 410 OF TITLE 23, UNITED STATES CODE

§ 410. Alcohol-impaired driving countermeasures

(a) * * *

* * * * * * *

(j) AUTHORIZATION OF APPROPRIATIONS.—For purposes of carrying

out this section, there is authorized to be appropriated out of the

Highway Trust Fund (other than the Mass Transit Account)

$25,000,000 for each of fiscal years 1994 through 1997ø.¿, and an

additional $500,000 for fiscal year 1997. Amounts made available

to carry out this section are authorized to remain available until

expended.

The accompanying bill would amend section 30308 of Title 49,

United States Code, as follows:

SECTION 30308 OF TITLE 49, UNITED STATES CODE

§ 30308. Authorization of appropriations

(a) GENERAL.—The Secretary of Transportation shall make available from amounts made available to carry out section 402 of title

23 $4,000,000 for each of the fiscal years ending September 30,

1993, and September 30, 1994, and $2,550,000 for each of fiscal

years 1995 øand 1996¿, 1996, and 1997 to carry out this chapter.

* * * * * * *
(52)

APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3 of rule XXI of the Rules of the House of

Representatives, the following table lists the appropriations in the

accompanying bill which are not authorized by law:

Department of Commerce

Economic Development Administration, except Salaries and Expenses

National Oceanic and Atmospheric Administration, Construction

Department of Defense

Military Personnel, Army

Military Personnel, Navy

Military Personnel, Marine Corps

Military Personnel, Air Force

Overseas Contingency Operations Transfer Fund

OPLAN 34A/35 P.O.W. Payments

Reserve Mobilization Income Insurance Fund

General Provisions—Section 2102 of Chapter 1, Title II

General Provisions—Section 2103 of Chapter 1, Title II

General Provisions—Section 2104 of Chapter 1, Title II

Independent Agency

Federal Election Commission

Department of Housing and Urban Development

Preserving Existing Housing Investment

Drug Elimination Grants for Low-Income Housing

Department of Transportation

Emergency Railroad Rehabilitation and Repair
(53)

CONSTITUTIONAL AUTHORITY

Clause 2(l)(4) of rule XI of the Rules of the House of Representatives states that:

Each report of a committee on a bill or joint resolution

of a public character, shall include a statement citing the

specific powers granted to the Congress in the Constitution

to enact the law proposed by the bill or joint resolution.

The Committee on Appropriations bases its authority to report

this legislation from Clause 7 of Section 9 of Article I of the Constitution of the United States of America which states:

No money shall be drawn from the Treasury but in consequence of Appropriations made by law * * *

Appropriations contained in this Act are made pursuant to this

specific power granted by the Constitution.
(54)

TRANSFER OF FUNDS

Pursuant to clause 1(b) of rule X of the Rules of the House of

Representatives, the following is submitted describing the transfer

of funds provided in the accompanying bill.

The following table shows the appropriations affected by the

transfers:

APPROPRIATED TRANSFERS RECOMMENDED IN THE BILL

Account to which transfer is to made Amount Account from which transfer is to made Amount

Department of the Interior: Bureau of Land

Management Construction.

$3,003,000 Department of the Interior: Bureau of Land

Management, Oregon and California

Grant Lands.

$3,003,000

Department of Defense: Operation and Maintenance, Marine Corps.23,000,000 Department of Defense: Military Personnel,

Marine Corps.

4,000,000

Operation and Maintenance, Marine Corps ... 11,000,000

Procurement of Ammunition, Navy and Marine Corps 1996/1998.4,000,000

Procurement, Marine Corps, 1996/1998 ........ 4,000,000

Fund for Rural America.—The bill allows the Secretary to transfer funds available on January 1, 1997 to the special supplemental

nutrition program for women, infants, and children (WIC).

The Committee has included language transfering $30,200,000 of

unobligated balances from the Homeownership and Opportunity for

People Everywhere (HOPE) Grants program to the Drug Elimination Grants Program. These funds are necessary to augment

HUD’s crime prevention efforts in federally assisted low-income

housing.
(55)

RESCISSIONS

Pursuant to clause 1(b) of rule X of the Rules of the House of

Representatives, the following table is submitted describing the rescissions recommended in the accompanying bill:

RESCISSIONS RECOMMENDED IN THE BILL

Department or activity Amounts recommended

for rescission

DEPARTMENT OF JUSTICE

General Administration: Working Capital Fund ........................... ¥$6,400,000

Legal Activities: Asset Forfeiture Fund .......................................... ¥3,000,000

Immigration and Naturalization Service: Construction ................ ¥1,000,000

DEPARTMENT OF COMMERCE

National Institute of Standards and Technology: Industrial

Technology Services ...................................................................... ¥7,000,000

National Oceanic and Atmospheric Administration: Fleet Modernization, Shipbuilding and Conversion .................................... ¥2,000,000

RELATED AGENCIES

Federal Communications Commission: Salaries and Expenses .... ¥1,000,000

Ounce of Prevention Council: Direct Appropriation ...................... ¥1,000,000

Energy Supply, Research and Development Activities ................. 22,532,000

Department of Energy, Clean Coal Technology ............................. 17,000,000

Department of Energy, Strategic Petroleum Reserve ................... 11,000,000

DEPARTMENT OF DEFENSE

Fiscal year 1996:

Department of Defense—Military Construction:

Military Construction, Air Force Reserve ........................ ¥5,000,000

Military Construction, Defense-wide ................................ ¥41,000,000

Base Realignment and Closure Account, Part II ............. ¥35,391,000

Base Realignment and Closure Account, Part III ........... ¥75,638,000

Base Realignment and Closure Account, Part IV ........... ¥22,971,000

Fiscal year 1995:

Department of Defense—Military Construction:

Military Construction, Navy .............................................. ¥6,480,000

Department of Defense—Military:

Fiscal year 1993:

Shipbuilding and Conversion, Navy: Unobligated Balances ................................................................................ ¥10,000,000

Fiscal year 1994:

Shipbuilding and Conversion, Navy: Service Craft ......... ¥28,700,000

Fiscal year 1995:

Aircraft Procurement, Army: Unobligated Balances ....... ¥1,085,000

Missile Procurement, Army: Unobligated Balances ........ ¥2,707,000

Procurement of Weapons and Tracked Combat Vehicles,

Army: Unobligated Balances ......................................... ¥2,296,000

Procurement of Ammunition, Army: Unobligated Balances ................................................................................ ¥3,236,000

Other Procurement, Army: Unobligated Balances .......... ¥2,502,000

Aircraft Procurement Navy: Unobligated Balances ........ ¥34,000,000

Weapons Procurement, Navy: Unobligated Balances ..... ¥16,000,000

Procurement of Ammunition, Navy and Marine Corps:

Unobligated Balances ..................................................... ¥812,000

Other Procurement, Navy: Unobligated Balances ........... ¥4,237,000

Procurement, Marine Corps: Unobligated Balances ....... ¥1,207,000
56

RESCISSIONS RECOMMENDED IN THE BILL—Continued

Department or activity Amounts recommended

for rescission

Aircraft Procurement, Air Force:

JSTARS, Advanced Procurement .............................. ¥14,400,000

Unobligated Balances ................................................. ¥33,650,000

Missile Procurement, Air Force:

Missile Replacement Equipment ............................... ¥4,000,000

Unobligated Balances ................................................. ¥7,195,000

Other Procurement, Air Force: Unobligated Balances .... ¥3,659,000

Procurement, Defense-Wide: Unobligated Balances ....... ¥12,881,000

National Guard and Reserve Equipment: Unobligated

Balances .......................................................................... ¥5,029,000

Chemical Agents and Munitions Destruction, Defense:

Unobligated Balances ..................................................... ¥456,000

Fiscal year 1996:

Aircraft Procurement, Army:

Blackhawk, Advanced Procurement .......................... ¥5,000,000

Spares and repair parts .............................................. ¥8,000,000

Avionics Support Equipment ..................................... ¥5,000,000

Procurement of Weapons and Tracked Combat Vehicles,

Army:

Carrier Mods ............................................................... ¥3,000,000

Bradley Fighting Vehicle System .............................. ¥10,000,000

Weapons and other Combat Vehicles ........................ ¥13,000,000

Procurement of Ammunition, Army:

Provision of Industrial Facilities ............................... ¥8,000,000

Layaway of Industrial Facilities ................................ ¥6,000,000

Ammunition Base Production Support ...................... ¥20,000,000

Other Procurement, Navy: Shipboard Tactical Communications .......................................................................... ¥3,000,000

Aircraft Procurement, Air Force:

JSTARS ........................................................................ ¥25,000,000

F–16 ............................................................................. ¥12,000,000

F–16 Post Production Support ................................... ¥15,000,000

Other Procurement, Air Force: Strategic C2 ................... ¥10,000,000

Procurement of Ammunition, Air Force: CBU–87 ........... ¥21,100,000

Procurement, Defense-Wide:

DISA/Defense Message System .................................. ¥12,000,000

Major Equipment ........................................................ ¥10,700,000

SDIO Major Equipment .............................................. ¥12,100,000

Research, Development, Test and Evaluation, Army:

Unobligated Balances ..................................................... ¥4,366,000

Research, Development, Test and Evaluation, Navy:

MK–48 ADCAP (CBASS—New Start) ....................... ¥4,000,000

Standard Missile Improvements (LASM—New

Start) ........................................................................ ¥500,000

Unobligated Balances ................................................. ¥14,978,000

Research, Development, Test and Evaluation, Air

Force:

Night Precision Attack ............................................... ¥2,000,000

Unobligated Balances ................................................. ¥28,396,000

Research, Development, Test and Evaluation, DefenseWide:

University Research .................................................... ¥9,200,000

Defense Reinvestment ................................................ ¥6,200,000

Medical Electron Laser ............................................... ¥3,300,000

High Performance Computing ................................... ¥1,600,000

Theater High Altitude Area Defense ......................... ¥40,000,000

NATO Research and Development ............................ ¥5,200,000

Office of Secretary of Defense Studies ...................... ¥5,700,000

Unobligated Balances ................................................. ¥55,973,000

Developmental Test and Evaluation, Defense:

Central Test and Evaluation ...................................... ¥2,200,000

Foreign Cooperative Testing ...................................... ¥6,200,000

Test and Evaluation .................................................... ¥3,800,000
57

RESCISSIONS RECOMMENDED IN THE BILL—Continued

Department or activity Amounts recommended

for rescission

Unobligated Balances ................................................. ¥890,000

Operational Test and Evaluation, Defense: Unobligated

Balances .......................................................................... ¥160,000

Chemical Agents and Munitions Destruction, Defense:

Unobligated Balances ................................................. ¥652,000

Procurement ................................................................ ¥22,000,000

Fiscal year 1997:

Military Personnel, Army: Foreign Currency Savings .... ¥37,000,000

Military Personnel, Navy: Foreign Currency Savings .... ¥9,000,000

Military Personnel, Air Force: Foreign Currency Savings .................................................................................. ¥12,000,000

Military Personnel, Air National Guard: Endstrength

Pricing ............................................................................. ¥7,600,000

Operation and Maintenance, Army:

Capital Fund Transfer ................................................ ¥17,000,000

Inflation Adjustment ................................................... ¥19,000,000

Foreign Currency Savings .......................................... ¥124,000,000

Operation and Maintenance, Navy:

Inflation Adjustment ................................................... ¥24,000,000

Foreign Currency Savings .......................................... ¥22,000,000

Operation and Maintenance, Air Force:

Inflation Adjustment ................................................... ¥18,000,000

Foreign Currency Savings .......................................... ¥79,000,000

Operation and Maintenance, Defense-Wide:

Office of the Secretary of Defense ............................. ¥10,000,000

Inflation Adjustment ................................................... ¥8,000,000

Foreign Currency Savings .......................................... ¥14,000,000

Operation and Maintenance, Army Reserve: Inflation

Adjustment ...................................................................... ¥1,000,000

Operation and Maintenance, Navy Reserve: Inflation

Adjustment ...................................................................... ¥1,000,000

Operation and Maintenance, Air Force Reserve: Inflation Adjustment .............................................................. ¥1,000,000

Operation and Maintenance, Army National Guard: Inflation Adjustment .......................................................... ¥2,000,000

Operation and Maintenance, Air National Guard: Inflation Adjustment .............................................................. ¥3,000,000

Drug Interdiction and Counter-Drug Activities, Defense: Inflation Adjustment ........................................... ¥2,000,000

Environmental Restoration, Army: Inflation Adjustment ................................................................................. ¥250,000

Environmental Restoration, Navy: Inflation Adjustment ¥250,000

Environmental Restoration, Air Force: Inflation Adjustment ................................................................................. ¥250,000

Environmental Restoration, Formerly Used Defense

Sites: Inflation Adjustment ............................................ ¥250,000

Former Soviet Union Threat Reduction: Inflation Adjustment ........................................................................... ¥2,000,000

Defense Health Program:

Inflation Adjustment ................................................... ¥10,000,000

Foreign Currency Savings .......................................... ¥11,000,000

Aircraft Procurement, Army: Inflation Adjustment ........ ¥8,000,000

Missile Procurement, Army: Inflation Adjustment ......... ¥2,000,000

Procurement of Weapons and Tracked Combat Vehicles,

Army: Inflation Adjustment ........................................... ¥5,000,000

Procurement of Ammunition, Army:

Armament Retooling and Manufacturing Support ... ¥10,000,000

Inflation Adjustment ................................................... ¥1,000,000

Other Procurement, Army:

Family of Medium Tactical Vehicles ......................... ¥6,000,000

Inflation Adjustment ................................................... ¥15,000,000

Aircraft Procurement, Navy:

F–18 E/F, Advanced Procurement ............................. ¥48,000,000
58

RESCISSIONS RECOMMENDED IN THE BILL—Continued

Department or activity Amounts recommended

for rescission

Inflation Adjustment ................................................... ¥28,000,000

Weapons Procurement, Navy: Inflation Adjustment ....... ¥6,000,000

Shipbuilding and Conversion, Navy: Inflation Adjustment ................................................................................. ¥33,000,000

Other Procurement, Navy: Inflation Adjustment ............ ¥8,000,000

Aircraft Procurement, Air Force:

F–15 ............................................................................. ¥35,000,000

Inflation Adjustment ................................................... ¥20,000,000

Missile Procurement, Air Force:

Medium Launch Vehicles ........................................... ¥5,000,000

Titan IV ....................................................................... ¥115,000,000

Inflation Adjustment ................................................... ¥11,000,000

Other Procurement, Air Force: Inflation Adjustment ..... ¥7,000,000

Procurement, Defense-Wide: Inflation Adjustment ......... ¥5,000,000

National Guard and Reserve Equipment: Inflation Adjustment ........................................................................... ¥8,000,000

Chemical Agents and Munitions Destruction, Defense:

Inflation Adjustment ...................................................... ¥2,000,000

Research, Development, Test and Evaluation, Army:

C3 Advanced Technology ............................................ ¥7,000,000

Night Vision Systems—Eng Dev ............................... ¥5,000,000

155 mm Light Weight Howitzer ................................ ¥3,000,000

Inflation Adjustment ................................................... ¥10,000,000

Research, Development, Test and Evaluation, Navy:

Submarine Technology ............................................... ¥12,000,000

Tomahawk ................................................................... ¥10,000,000

MK–48 ADCAP (CBASS–New Start) ........................ ¥1,000,000

Standard Missile Improvements (LASM—New

Start) ........................................................................ ¥5,500,000

Inflation Adjustment ................................................... ¥9,000,000

Research, Development, Test and Evaluation, Air

Force:

AWACs ......................................................................... ¥25,000,000

Threat Simulator Development ................................. ¥5,000,000

Classified ..................................................................... ¥200,000,000

WCMD .......................................................................... ¥3,500,000

JDAM ........................................................................... ¥4,000,000

Inflation Adjustment ................................................... ¥22,000,000

Research, Development, Test and Evaluation, DefenseWide:

Dual-use Funds (COSSI) ............................................ ¥100,000,000

Inflation Adjustment ................................................... ¥15,000,000

Department of Transportation

Federal Aviation Administration, Grants-in-Aid for Airports

(Airport and Airway Trust Fund) ................................................ ¥750,000,000

National Highway Traffic Safety Administration, Highway traffic safety grants (Highway Trust Fund) ...................................... ¥13,000,000

Federal Transit Administration, Trust fund share of expenses

(Highway Trust Fund) .................................................................. ¥271,000,000

Federal Transit Administration, Discretionary grants (Highway

Trust Fund) ................................................................................... ¥588,000,000

General Services Administration

Federal Buildings Fund: Public Law 104–208 ............................... ¥1,400,000

Expenses, Presidential Transition: Public Law 104–208 .............. ¥5,600,000

Department of Housing and Urban Development

Annual Contributions for Assisted Housing ................................... ¥3,823,440,000
(59)

COMPARISON WITH BUDGET RESOLUTION

Section 308(a)(1)(A) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93–344), as amended, requires that the report accompanying a bill providing new budget

authority contain a statement detailing how that authority compares with the reports submitted under section 602 of the Act for

the most recently agreed to concurrent resolution on the budget for

the fiscal year. All budget authority provided in the accompanying

bill is offset therein.

The bill provides no new spending authority as described in section 401(c)(2) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93–344), as amended.

FIVE-YEAR OUTLAY PROJECTIONS

In compliance with section 308(a)(1)(C) of the Congressional

Budget and Impoundment Control Act of 1974 (Public Law 93–

344), as amended, the following table contains five-year projections

associated with the budget authority provided in the accompanying

bill:

[In millions]

Budget Authority ............................................................................................. $757

Outlays:

Fiscal year 1997 ........................................................................................ 542

Fiscal year 1998 ........................................................................................ 1,549

Fiscal year 1999 ........................................................................................ 1,176

Fiscal year 2000 ........................................................................................ 981

Fiscal year 2001 and future years .......................................................... 1,549

Note: The above table includes mandatory appropriations and discretionary appropriations.

ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the Congressional Budget and

Impoundment Control Act of 1974 (Public Law 93–344), as amended,

the financial assistance to State and local governments is as follows:

[In millions]

New budget authority ............................................................................ $2,281

Fiscal year 1997 outlays resulting therefrom ...................................... 202
60

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 2(l)(2)(b) of rule XI of the

House of Representatives, the results of each roll call vote on an

amendment or on the motion to report, together with the names of

those voting for and those voting against, are printed below:

ROLLCALL NO. 1

Date: April 24, 1997.

Measure: 1997 Emergency Supplemental Appropriations bill.

Motion by: Mr. Obey.

Description of Motion: To increase the amount for the Special

Supplemental Nutrition Program for Women, Infants, and Children

(WIC) by $38 million.

Results: Rejected 24 yeas to 28 nays.

Members Voting Yea Members Voting Nay

Ms. DeLauro Mr. Aderholt

Mr. Dicks Mr. Bonilla

Mr. Dixon Mr. Callahan

Mr. Edwards Mr. Cunningham

Mr. Fazio Mr. DeLay

Mr. Foglietta Mr. Dickey

Mr. Forbes Mr. Frelinghuysen

Mr. Hefner Mr. Hobson

Mr. Hoyer Mr. Istook

Miss Kaptur Mr. Kingston

Mrs. Lowey Mr. Knollenberg

Mrs. Meek Mr. Kolbe

Mr. Moran Mr. Latham

Mr. Murtha Mr. Lewis

Mr. Obey Mr. Livingston

Mr. Olver Mr. McDade

Mr. Pastor Mr. Miller

Mr. Price Mr. Nethercutt

Mr. Sabo Mr. Neumann

Mr. Serrano Mrs. Northup

Mr. Skaggs Mr. Packard

Mr. Stokes Mr. Parker

Mr. Visclosky Mr. Regula

Mr. Walsh Mr. Rogers

Mr. Skeen

Mr. Tiahrt

Mr. Wamp

Mr. Young
61
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63
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65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
(81)

ADDITIONAL VIEWS OF HON. DAVID R. OBEY, LOUIS

STOKES, NORMAN D. DICKS, MARTIN OLAV SABO, VIC

FAZIO, ALAN B. MOLLOHAN, MARCY KAPTUR, NITA M.

LOWEY, JOSE ́ E. SERRANO, ROSA L. DELAURO, JAMES P.

MORAN, JOHN W. OLVER, ED PASTOR, CARRIE P. MEEK,

DAVID E. PRICE, AND CHET EDWARDS

This bill contains a number of provisions which will be favored

by those in both parties; and it is legislation which, on balance, will

probably be supported by a significant number of Members of both

parties. There are, however, some failings in this legislation which

should be noted.

FAILURE TO INCLUDE EMERGENCY CDBG FUNDS

We are disappointed that the committee did not approve Presi- dent Clinton’s request for $100 million in emergency supplemental

appropriations for the Community Development Block Grant

(CDBG) program, to be used to aid recovery from the devastating

floods in North and South Dakota and Minnesota. The CDBG program offers a flexible mechanism that can fill in gaps left by other

federal disaster relief programs. As the full dimensions of this disaster continue to unfold, we believe that such flexibility will prove

to be extremely important in achieving the most efficient use of

available funds and insuring that the most urgent needs are met.

RESCISSION OF HUD SECTION 8 FUNDING

We also take note that the bill, as reported, includes rescissions of $3.8 billion in budget authority from assisted housing programs

of the Department of Housing and Urban Development. The vast

majority of this rescission comes from ‘‘excess’’ reserves for section

8 housing vouchers and certificates—that is, budget authority committed under section 8 contracts over the years that has turned out

to exceed the amounts actually needed under those contracts. We

understand that rescinding this budget authority will not have a

negative impact on housing assistance in the current fiscal year.

If these reserves were not rescinded, however, they would carry

over into fiscal year 1998, and would be available to fund renewal

of expiring section 8 housing assistance contracts. The number of

section 8 contracts needing renewal will grow rapidly over the next

several years, and the budget authority required for contract renewal will increase from $3.6 billion in 1997 to an estimated $9.2

billion in 1998. If sufficient budget authority is not provided to

renew these contracts when they expire (or to provide alternate

housing assistance for residents where contracts will not be renewed) the consequences could be grave for literally millions of less

fortunate Americans.

The majority has given assurances that the rescission of section

8 reserves in this bill is not intended to harm or prejudice the fu-
82

ture of this program. We are not objecting to the rescission based

on those assurances and with the understanding that adequate appropriations will be provided for fiscal year 1998 to renew expiring

contracts and prevent displacement of the elderly and disabled persons, families with children, and others receiving assistance under

the section 8 program.

DENIAL OF FULL FUNDING FOR WIC

Our deepest concern with this bill relates to the WIC program.

We are deeply distressed by the decision of the Appropriations

Committee to cut half of the requested funds for the Special Supplemental Food Program for Women, Infants and Children (WIC).

The result of that cut will be the elimination by September 30 of

this year of 150,000 to 200,000 pregnant women and infants from

program participation. We view that as short sighted, wasteful and

cruel.

The U.S. Department of Agriculture has collected information

from all 50 states concerning the availability of funds to continue

current enrollment levels through the end of the year. Based on the

data prepared by the states, it is apparent that nationwide enrollment will drop from 7.4 million enrollees to a little more than 7

million enrollees if no additional funds are made available during

the current fiscal year. In order to prevent this drop in services an

additional $76 million in funding is necessary.

Unfortunately, the Committee has voted to provide only $38 million in additional funding—half of the amount identified by the

states as the level required to keep participation at current levels.

In effect, the Committee is reducing the number of individuals slated for program termination from 360,000 to 180,000. This action is

reminiscent of the majority’s attempt two years ago to reduce funding for the school lunch program without acknowledging that children would be hurt.

Those who advocated denying funding to WIC cited several reasons. Some say that the numbers used to back up the request are

‘‘disingenuous’’. In fact, the numbers are based on data from the

states collected within the past month and reflecting the most upto-date information available. In this most recent exercise, 30

states projected reductions in WIC participation if supplemental

funding is not forthcoming.

Other opponents of full WIC funding have cited the fact that

state authorities charged with operating the program inevitably

have funds left over at the end of the fiscal year. They have argued

that the carryover funds could be used to avert reductions in program participation. While this argument may sound reasonable on

the surface, it fails to account for the fact that state governments

must by law maintain sufficient funds at the end of a fiscal year

to meet all obligations incurred in that year. Vouchers for items

such as infant formula or orange juice which are issued in the later

months of one fiscal year may not be redeemed for payment by the

states until the early months of the following fiscal year. Carryover

amounts projected for the current fiscal year are the lowest in the

recent history of the program and very close to the minimum level

which most program authorities feel is consistent with prudent program management.
83

Finally, some members of the Agriculture Subcommittee have

pointed to policy differences they have with certain state officials

over management of the WIC program. While these differences

may be of valid concern to the Committee, they do not constitute

a reasonable argument for denying needed food supplements to eligible program participants.

Virtually every analysis of the WIC program has indicated that

it not only improves the lives of program participants but saves

U.S. taxpayers significant sums of money by reducing the number

of low birth weight babies, improving the health of expectant mothers and small children and increasing the portion of at risk children who begin pre-school, kindergarten and elementary school

ready to learn. The GAO has estimated that every dollar spent in

the WIC program saves $3.54, with most of the savings coming in

the Medicaid program. Spending about $30 per person per month

in the WIC program makes a lot more sense to us than spending

hundreds or even thousands of dollars a day on Medicaid costs.

It is ironic that the Committee has decided to fund virtually

every other program in this bill, ranging from defense spending to

disaster relief, at or above the level requested by the White House.

We continue to wonder why the majority has such difficulty in coming to terms with the need for additional funds for the protection

of children’s health. We believe that avoiding potential human disasters is just as important as providing funds to respond to natural

disasters.

ED PASTOR.

JOSE ́ E. SERRANO.

CARRIE P. MEEK.

DAVID PRICE.

MARTIN O. SABO.

JIM MORAN.

VIC FAZIO.

ALAN B. MALLOHAN.

DAVID OBEY.

MARCY KAPTUR.

ROSA L. DELAURO.

LOUIS STOKES.

NORMAN DICKS.

CHET EDWARDS.

JOHN OLVER.

NITA LOWEY.
(84)

ADDITIONAL VIEWS OF HON. MARTIN OLAV SABO

This bill is an important first step in making sure adequate

funding is available to help the thousands of people in Minnesota

and the Dakotas who have had their lives turned upside down by

an unprecedented flood this spring. I was very pleased the committee—in response to the needs of that region—added an extra $200

million to earlier requests for funding.

Because we don’t yet know the full extent of the flood damage

in this unfolding tragedy, I greatly appreciate Chairman Livingston’s commitment to revisit the funding issue before this legislation becomes final—ensuring the region will get the help it needs.

This much-needed relief will go for families, individuals, businesses, and local governments that have suffered losses, and will

also pay for flood prevention and control efforts. The aid—combined

with the persistence, creativity, and heroic spirit we have already

seen from area citizens—will go a long way toward getting the region back on its feet.

Additionally, I appreciate the commitment of Chairman Livingston to support Congresswoman Meek and others in their efforts to

remedy the problems created for legal immigrants by last year’s

welfare bill.

Under the new law, legal immigrants will be denied Supplemental Security Income (SSI), food stamps, and Medicaid benefits

starting in August of this year. Many of the people affected by the

new law are elderly people who have lived in this country, worked

hard, and paid taxes for many years. Many of these people came

here to escape political or religious persecution.

The new law is unduly harsh on these people and states, localities, and private charities have not had nearly enough time to find

ways to soften the blow. In my state of Minnesota alone, estimates

show the new law will deny Food Stamps to 16,000 legal immigrants, Supplemental Security Income to 5,400 elderly and disabled

legal immigrants, and Medicaid coverage to 470 immigrants. Nationally, millions more will be hurt by these changes.

It is my understanding that budget negotiators and the Congressional leadership are looking for ways to remedy the worst excesses

of this law, but they may not be able to complete their work before

August. If there is no agreement by the time the Supplemental Appropriations bill goes to the floor, Congresswoman Meek and others

will ask the Rules Committee for the right to offer an amendment

which would temporarily delay the benefit cutoff until a more appropriate remedy can be effected.

While I hope that this will move through Congress swiftly, I am

very concerned that the bulk of the offsets in this bill come from

a rescission of funds for assisted housing at the Department of

Housing and Urban Development.
85

This rescission will further complicate the difficult and ongoing

process of renewing expiring Section 8 rental assistance contracts.

Today, 4.4 million low-income, disabled, and elderly individuals

and families utilize the Section 8 program. Expiring contracts must

be renewed, or housing for thousands of vulnerable individuals will

be placed at risk.

Over the course of the next few years, the number of expiring

contracts will increase rapidly, and budget authority must increase

simultaneously in order to honor our current Section 8 commitments. For example, HUD has requested $9.2 billion in budget authority to renew contracts in FY 1998 in contrast to the $3.6 billion

required for the same purpose in FY 1997. This poses a substantial

challenge for Congress, which will only be compounded by this

$3.823 billion rescission.

Despite my concern about the assisted housing rescission, I

greatly appreciate Chairman Livingston’s commitment to help

flood-ravaged areas in Minnesota and the Dakotas, as well as his

support for our efforts to help legal immigrants.

MARTIN O. SABO.
86

ADDITIONAL VIEWS OF HON. CARRIE P. MEEK

I write separately to applaud the deep concern shown by the

Committee and the Chairman over the cut-off of Supplemental Security Income (‘‘SSI’’) checks to our needy legal immigrants (including refugees and asylees). Because of a provision in last year’s welfare law, these checks will stop in August—four months from now.

At the markup the Chairman indicated that the Republican leadership is aware of the problem and is considering a legislative solution.

August is the month Congress is scheduled to be in recess. We

should not be in recess unless we have dealt with this problem.

The purpose of last year’s welfare law was to move people from

welfare to work. The cut-off of SSI checks has nothing to do with

that goal.

SSI checks go to needy people who are at least 65, blind, or disabled. These people are not going to get jobs in the private sector

when these SSI checks stop. Because of the interaction of Medicaid

and SSI, cutting off SSI means that some of these people may also

lose their Medicaid benefits. That means elderly legal immigrants

may be thrown out of nursing homes this summer.

Two months ago the Social Security Administration (‘‘SSA’’)

began mailing letters to 800,000 legal immigrants telling them

their SSI checks may end this summer.

These letters are causing fear throughout the land. Two weeks

ago a legal immigrant committed suicide in Miami after learning

that he might lose his SSI check. Last week 5,000 Jewish legal immigrants from the former Soviet Union held a rally at the Capitol

to protest this cut-off. At this rally, Yosef Abramowitz, President of

the Union of Councils for Soviet Jews, asked Congress to immediately pass legislation ‘‘to continue the benefits until a permanent

legislative solution is found and enacted.’’

Leaders in both parties now recognize that something must be

done about this provision in the new Federal welfare law. On April

14 the Senate passed unanimously a resolution of Majority Leader

Lott. It says ‘‘It is the sense of the Senate that elderly and disabled

legal immigrants who are unable to work should receive assistance

essential to their well-being, and that the President, Congress, the

States, and faith-based and other organizations should continue to

work together toward that end.’’

The nation needs time to adjust. Many State legislatures have already adjourned for this year. People need time to try to become

citizens. In Miami the waiting list to become a citizen is now over

a year.

We can postpone the cut-off of SSI checks and still balance the

budget. The ‘‘Blue Dog Coalition’’ balanced budget proposal contains a two year postponement. According to the Congressional

Budget Office, a postponement through the end of the fiscal year

will cost the Federal government about $240 million in spending.

There is no need to require offsets for this additional spending, just

as there are no offsets for the additional $757 million in mandatory

spending for veterans benefits that the reported bill contains.

In conclusion, in the reported bill we are providing relief to the

victims of floods and other natural disasters. We are doing this be-
87

cause we are a compassionate nation. We should extend our compassion to needy legal immigrants who have paid their taxes and

lived by our rules.

CARRIE P. MEEK.

Æ