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[Senate Report 110-129]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 268
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-129

======================================================================

 
  FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2008

                                _______
                                

                 July 13, 2007.--Ordered to be printed

                                _______
                                

           Mr. Durbin, from the Committee on Appropriations, 
                        submitted the following

                                 REPORT

                        [To accompany H.R. 2829]

    The Committee on Appropriations, to which was referred the 
bill (H.R. 2829) making appropriations for financial services 
and general government for the fiscal year ending September 30, 
2008, and for other purposes, reports the same with an 
amendment in the nature of a substitute and recommends that the 
bill as amended do pass.

Amounts of new budget (obligational) authority for fiscal year 2008

Total of bill as reported to the Senate................. $44,225,978,000
Amount of 2007 appropriations...........................  40,811,304,000
Amount of 2008 budget estimate..........................  43,811,876,000
Amount of House allowance...............................  43,802,260,000
Bill as recommended to Senate compared to--
    2007 appropriations.................................  +3,414,674,000
    2008 budget estimate................................    +414,102,000
    House allowance.....................................    +423,718,000

                                CONTENTS

                              ----------                              
                                                                   Page
Summary of Bill..................................................     4
Transparency in Congressional Directives.........................     7
Title I: Department of the Treasury:
    Departmental Offices.........................................     9
    Department-Wide Systems and Capital Investments Program......    14
    Office of the Inspector General..............................    14
    Treasury Inspector General for Tax Administration............    15
    Air Transportation Stabilization Program Account.............    16
    Financial Crimes Enforcement Network.........................    16
    Financial Management Service.................................    18
    Alcohol and Tobacco Tax and Trade Bureau.....................    18
    Bureau of Engraving and Printing.............................    19
    Bureau of the Public Debt....................................    19
    Community Development Financial Institutions Fund............    20
    United States Mint...........................................    21
    Internal Revenue Service.....................................    21
        Taxpayer Services........................................    24
        Enforcement..............................................    27
        Operations Support.......................................    28
        Business Systems Modernization...........................    30
        Health Insurance Tax Credit Administration...............    31
    Administrative Provisions--Department of the Treasury........    33
Title II: Executive Office of the President and Funds 
  Appropriated to the President:
    Compensation of the President................................    34
    White House Office...........................................    34
    Executive Residence at the White House.......................    35
    White House Repair and Restoration...........................    35
    Council of Economic Advisers.................................    36
    Office of Policy Development.................................    36
    National Security Council....................................    37
    Privacy and Civil Liberties Board............................    37
    Office of Administration.....................................    38
    Office of Management and Budget..............................    38
    Office of National Drug Control Policy.......................    39
    Funds Appropriated to the President:
        High Intensity Drug Trafficking Areas....................    42
        Other Federal Drug Control Programs......................    43
    Unanticipated Needs..........................................    46
    Special Assistance to the President..........................    46
    Official Residence of the Vice President.....................    47
Title III: The Judiciary:
    Supreme Court of the United States...........................    48
    United States Court of Appeals for the Federal Circuit.......    49
    U.S. Court of International Trade............................    50
    Courts of Appeals, District Courts, and Other Judicial 
        Services.................................................    51
    Vaccine Injury Compensation Fund.............................    52
    Defender Services............................................    52
    Fees of Jurors and Commissioners.............................    53
    Court Security...............................................    53
    Administrative Office of the United States Courts............    54
    Federal Judicial Center......................................    54
    Judicial Retirement Funds....................................    55
    United States Sentencing Commission..........................    55
    Administrative Provisions--The Judiciary.....................    56
Title IV--District of Columbia:
    Federal Funds:
        Federal Payment for District of Columbia Resident Tuition 
          Support................................................    57
        Federal Payment for Emergency Planning and Security Costs 
          in the District of Columbia............................    58
        Federal Payment to the District of Columbia Courts.......    59
        Defender Services in the District of Columbia Courts.....    60
        Federal Payment to the Court Services and Offender 
          Supervision Agency for the District of Columbia........    60
        Federal Payment to the Public Defender Service for the 
          District of Columbia...................................    61
        Federal Payment to the District of Columbia Water and 
          Sewer Authority........................................    61
        Federal Payment to the Criminal Justice Coordinating 
          Council................................................    62
        Federal Payment for School Improvement...................    63
        Federal Payment for Consolidated Laboratory Facility.....    64
        Federal Payment for Central Library and Branch Locations.    64
        Federal Payment to Reimburse the Federal Bureau of 
          Investigation..........................................    65
        Federal Payment to the Executive Office of the Mayor of 
          the District of Columbia...............................    65
    District of Columbia Local Operating Budget..................    66
Title V--Independent Agencies:
    Commodity Futures Trading Commission.........................    68
    Consumer Product Safety Commission...........................    69
    Election Assistance Commission...............................    70
    Federal Communications Commission............................    71
    Federal Deposit Insurance Corporation: Office of Inspector 
      General....................................................    72
    Federal Election Commission..................................    72
    Federal Labor Relations Authority............................    73
    Federal Trade Commission.....................................    73
    General Services Administration..............................    76
    Merit Systems Protection Board...............................    86
    Morris K. Udall Scholarship and Excellence in National 
      Environmental Policy Foundation............................    87
    National Archives and Records Administration.................    88
    National Historical Publications and Records Commission......    91
    National Credit Union Administration.........................    92
    Office of Government Ethics..................................    93
    Office of Personnel Management...............................    94
    Office of Special Counsel....................................    99
    Securities and Exchange Commission...........................   100
    Selective Service System.....................................   101
    Small Business Administration................................   102
    United States Postal Service.................................   106
    United States Tax Court......................................   108
Title VI
    General Provisions--This Act.................................   110
Title VII:
    General Provisions--Government-Wide..........................   112
Title VIII
    General Provisions--District of Columbia.....................   115
Compliance With Paragraph 7, Rule XVI of the Standing Rules of 
  the Sen- 
  ate............................................................   118
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................   119
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the Senate.....................................................   119
Budgetary Impact of Bill.........................................   132

                          SUMMARY OF THE BILL

    Fiscal year 2008 is the initial year for the Financial 
Services and General Government appropriations bill. The 
agencies and programs funded in this bill were previously 
funded in several other appropriations bills, namely the 
Transportation, Treasury, Housing and Urban Development, the 
Judiciary, and Independent Agencies appropriations bill, the 
Commerce, Justice, Science, and Related Agencies appropriations 
bill, the District of Columbia appropriations bill and the 
Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies appropriations bill.
    The Committee recommends $44,225,978,000, in discretionary 
and mandatory appropriations. This represents an increase of 
$3,414,674,000 over the fiscal year 2007 enacted level, and an 
increase of $414,102,000 over the budget request. Of the total, 
$21,800,000,000 is provided in discretionary appropriations, 
only slightly higher than the budget request of 
$21,783,298,000. Mandatory appropriations total 
$22,425,978,000.
    The Committee recommended bill is consistent with the 
allocation for the Financial Services and General Government 
appropriations bill. The Committee has made difficult but 
necessary decisions to craft a bill that is within strict 
fiscal limitations. The President's budget request for the 
agencies funded by this bill is stringent.

                             PROJECT FUNDING
------------------------------------------------------------------------
                                       President's
              Agency                  budget request    Senate requests
------------------------------------------------------------------------
General Services Administration...     $1,395,289,000       $280,451,000
National Archives.................  .................         15,510,000
Small Business Administration.....  .................         36,000,000
                                   -------------------------------------
      Total.......................      1,395,289,000        331,961,000
                                   -------------------------------------
      Combined Total Project
       Funding....................              1,727,250,000
------------------------------------------------------------------------

    The Small Business Administration account includes earmarks 
totaling $36,000,000 for 75 projects. This is a reduction of 20 
percent below the fiscal year 2006 funding level. The President 
did not request any specific projects. The bill includes no 
earmarks for the District of Columbia, a 100 percent reduction. 
Within the General Services Administration, the President 
requested $1,395,289,000, of which $615,204,000 is for 
construction of Federal buildings and of which $804,483,000 is 
for repair of Federal buildings. The President's budget did not 
include funding requested by the Judiciary for courthouse 
construction, therefore, the Committee provides an additional 
$280,451,000 in courthouse construction projects. Within the 
National Archives and Records Administration, the President 
requested $8,663,000 for basic repairs and the Committee 
provides an additional $15,510,000 in additional funding for 
repair of presidential libraries.

                     PROGRAM, PROJECT, AND ACTIVITY

    During fiscal year 2008, for the purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177), as amended, with respect to appropriations contained 
in the accompanying bill, the terms ``program, project, and 
activity'' [PPA] shall mean any item for which a dollar amount 
is contained in appropriations acts (including joint 
resolutions providing continuing appropriations) or 
accompanying reports of the House and Senate Committees on 
Appropriations, or accompanying conference reports and joint 
explanatory statements of the committee of conference.

                        REPROGRAMMING GUIDELINES

    The Committee includes a provision (sec. 610) establishing 
the authority of agencies to reprogram funds and the limitation 
on that authority. The provision specifically requires the 
advance approval of the House and Senate Committees on 
Appropriations of any proposal to reprogram funds that: (1) 
creates a new program; (2) eliminates a program, project, or 
activity [PPA]; (3) increases funds or personnel for any PPA 
for which funds have been denied or restricted by the Congress; 
(4) proposes to redirect funds that were directed in such 
reports for a specific activity to a different purpose; (5) 
augments an existing PPA in excess of $5,000,000 or 10 percent, 
whichever is less; (6) reduces an existing PPA by $5,000,000 or 
10 percent, whichever is less; or (7) creates, reorganizes, or 
restructures offices different from the congressional budget 
justifications or the table at the end of the Committee report, 
whichever is more detailed.
    The Committee retains the requirement that each agency 
submit an operating plan to the House and Senate Committees on 
Appropriations not later than 60 days after enactment of this 
act to establish the baseline for application of reprogramming 
and transfer authorities provided in this act. Specifically, 
each agency should provide a table for each appropriation with 
columns displaying the budget request; adjustments made by 
Congress; adjustments for rescissions, if appropriate; and the 
fiscal year enacted level. The table shall delineate the 
appropriation both by object class and by PPA. The report must 
also identify items of special congressional interest.
    The Committee expects the agencies and bureaus to submit 
reprogramming requests in a timely manner and to provide a 
thorough explanation of the proposed reallocations, including a 
detailed justification of increases and reductions and the 
specific impact the proposed changes will have on the budget 
request for the following fiscal year. Except in emergency 
situations, reprogramming requests should be submitted no later 
than June 30.
    The Committee expects each agency to manage its programs 
and activities within the amounts appropriated by Congress. The 
Committee reminds agencies that reprogramming requests should 
be submitted only in the case of an unforeseeable emergency or 
a situation that could not have been anticipated when 
formulating the budget request for the current fiscal year. 
Further, the Committee notes that when a Department or agency 
submits a reprogramming or transfer request to the Committees 
on Appropriations and does not receive identical responses from 
the House and Senate, it is the responsibility of the 
Department to reconcile the House and Senate differences before 
proceeding, and if reconciliation is not possible, to consider 
the request to reprogram funds unapproved.

                    RELATIONSHIP WITH BUDGET OFFICES

    Through the years, the Committee has channeled most of its 
inquiries and requests for information and assistance through 
the budget offices of the various departments, agencies, 
offices, and commissions. The Committee has often pointed to 
the natural affinity and relationship between the budget 
offices and the Committee which makes such a relationship 
workable. The Committee reiterates its longstanding position 
that while the Committee reserves the right to call upon any 
office or officer in the departments, agencies, and 
commissions, the primary conjunction between the Committee and 
these entities must be through the budget offices. To help 
ensure the Committee's ability to perform its responsibilities, 
the Committee insists on having direct, unobstructed, and 
timely access to the budget offices and expects to be able to 
receive forthright and complete responses from those offices 
and their employees.

                  CONGRESSIONAL BUDGET JUSTIFICATIONS

    The Committee understands the administration is utilizing 
the Program Assessment Rating Tool [PART] as a method for 
evaluating programs by linking performance, goals, and 
benchmarks with funding decisions. In too many cases, however, 
the PART analysis appears to be overly subjective and designed 
to reach certain preconceived conclusions about a program's 
validity and accomplishments and its budget needs.
    This approach reduces any value that PART may have as a 
tool for measuring the contributions of a program and the 
extent to which a program should be funded. More troubling, OMB 
and Federal agencies have tended to accommodate an increasing 
amount of PART performance data in the budget justifications by 
eliminating fundamental and objective programmatic budget data 
that is critical to the work of the Committee. This trend has 
made it increasingly difficult for the Committee to perform a 
meaningful review of budget justifications, including the 
ability to conduct necessary budget oversight work as well as 
the ability to reach valid and comprehensive funding decisions 
absent a substantial amount of additional review and budget 
analysis.
    Budget justifications are prepared not for the use of the 
agency, but instead are the primary tool used by the House and 
Senate Committees on Appropriations to evaluate the resource 
requirements and fiscal needs of agencies. The Committee is 
aware that the format and presentation of budget materials is 
largely left to the agency within presentation objectives set 
forth by OMB. In fact, OMB Circular A-11, part 6 specifically 
states that the ``agency should consult with your congressional 
committees beforehand to ensure their awareness of your plans 
to modify the format of agency budget documents.'' The 
Committee expects all the budget justifications to adhere to 
this directive and provide the data needed to make appropriate 
and meaningful funding decisions.
    While the Committee values the inclusion of performance 
data and presentations, it is important to ensure that, in the 
implementation of the PART analysis, vital budget information 
that the Committee needs is not lost. Therefore, the Committee 
directs that justifications submitted with the fiscal year 2009 
budget requests by agencies funded under this act must contain 
the customary level of detailed data and explanatory statements 
to support the appropriations requests at the level of detail 
contained in the funding table included at the end of the 
report. Among other items, agencies shall provide a detailed 
discussion of proposed new initiatives, proposed changes in the 
agency's financial plan from prior year enactment, and detailed 
data on all programs and comprehensive information on any 
office or agency restructurings. At a minimum, each agency must 
also provide adequate justification for funding and staffing 
changes for each individual office and materials that compare 
programs, projects, and activities that are proposed for fiscal 
year 2009 to the fiscal year 2008 enacted level.
    The Committee is aware that the analytical materials 
required for review by the Committee are unique to each agency 
in this act. Therefore, the Committee expects that each agency 
will coordinate with the House and Senate Committees on 
Appropriations in advance on its planned presentation for its 
budget justification materials in support of the fiscal year 
2009 budget request.

                TRANSPARENCY IN CONGRESSIONAL DIRECTIVES

    On January 18, 2007, the Senate passed S. 1, The 
Legislative Transparency and Accountability Act of 2007, by a 
vote of 96-2. While the Committee awaits final action on this 
legislation, the chairman and ranking member of the Committee 
issued interim requirements to ensure that the goals of S. 1 
are in place for the appropriations bills for fiscal year 2008.
    The Constitution vests in the Congress the power of the 
purse. The Committee believes strongly that Congress should 
make the decisions on how to allocate the people's money. In 
order to improve transparency and accountability in the process 
of approving earmarks (as defined in S. 1) in appropriations 
measures, each Committee report includes, for each earmark:
  --(1) the name of the Member(s) making the request, and where 
        appropriate, the President;
  --(2) the name and location of the intended recipient or, if 
        there is no specifically intended recipient, the 
        intended location of the activity; and
  --(3) the purpose of such earmark.
    The term ``congressional earmark'' means a provision or 
report language included primarily at the request of a Senator, 
providing, authorizing, or recommending a specific amount of 
discretionary budget authority, credit authority, or other 
spending authority for a contract, loan, loan guarantee, grant, 
loan authority, or other expenditure with or to an entity, or 
targeted to a specific state, locality or congressional 
district, other than through a statutory or administrative, 
formula-driven, or competitive award process.
    For each earmark, a Member is required to provide a 
certification that neither the Member (nor his or her spouse) 
has a pecuniary interest in such earmark, consistent with 
Senate Rule XXXVII(4). Such certifications are available to the 
public at http://appropriations.senate.gov/senators.cfm or go 
to appropriations.senate.gov and click on ``Members''.

                                TITLE I

                       DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         salaries and expenses

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2007....................................    $216,348,000
Budget estimate, 2008...................................     250,141,000
House allowance.........................................     250,591,000
Committee recommendation................................     251,641,000

                          PROGRAM DESCRIPTION

    The Departmental Offices consist of the Office of the 
Secretary and Deputy Secretary, the Office of International 
Affairs, the Office of Domestic Finance, the Office of 
Terrorism and Financial Intelligence, the Office of Tax Policy, 
the Office of Economic Policy, the Office of the General 
Counsel, the Office of Legislative Affairs, the Office of 
Public Affairs, Office of the Treasurer, and the Office of 
Management. The Secretary of the Treasury has the primary role 
in formulating and managing the domestic and international tax 
and financial policies of the Federal Government. The 
Secretary's responsibilities funded by the Salaries and 
Expenses appropriation include: recommending and implementing 
United States domestic and international economic and tax 
policy; formulating fiscal policy; governing the fiscal 
operations of the Government; executing the Nation's financial 
sanction policies; disrupting and dismantling terrorist 
financial infrastructure; protecting the United States and 
international financial system from terrorist financing, money 
laundering, and other financial crimes; managing the public 
debt; managing international development policy; representing 
the United States on international monetary, trade and 
investment issues; overseeing Department of the Treasury 
overseas operations; and directing the administrative 
operations of the Department of the Treasury. The majority of 
the Salaries and Expenses appropriation provides resources for 
policy formulation and implementation in the areas of domestic 
and international finance, terrorist financing and financial 
crimes, tax, economic, trade, financial operations and general 
fiscal policy. This appropriation also provides resources to 
support the Secretary and policy components, and coordination 
of departmental administrative policies in financial and 
personnel management, procurement operations, and information 
systems and telecommunications.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $251,641,000 for the Salaries and 
Expenses appropriation of the Departmental Offices account of 
the Department of the Treasury for fiscal year 2008. This 
amount is $1,500,000 above the budget request and $35,293,000 
above the fiscal year 2007 enacted level. Within the funds 
provided under this account, the Committee has provided 
$3,000,000 for information technology modernization; $200,000 
for official reception and representation expenses; $258,000 
for unforeseen emergencies; and $5,114,000 for the Treasury-
wide financial statement audits and other Treasury office and 
bureau audits.
    The following table compares the fiscal year 2007 enacted 
level to the fiscal year 2008 budget estimate and the 
Committee's recommendation for each office:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                    Fiscal year     2008 budget      Committee
                                                                   2007 enacted      estimate     recommendation
----------------------------------------------------------------------------------------------------------------
Executive direction.............................................          10,753           9,636          11,136
General counsel.................................................           8,713          10,179          10,179
Economic policies and programs..................................          36,154          45,450          45,450
Financial policies and programs.................................          24,632          28,869          28,869
Terrorism and financial intelligence............................          43,457          56,225          56,225
Treasury-wide management and programs...........................          17,837          20,810          20,810
Administration..................................................          74,802          78,972          78,972
----------------------------------------------------------------------------------------------------------------

    The Committee remains concerned with the significant 
management challenges faced by the Department and believes that 
greater emphasis must be placed on effective management 
leadership. The Treasury Inspector General [IG] continues to 
cite concerns with the corporate management structure of the 
Treasury and believes that the lack of effective management 
leadership has contributed to serious deficiencies at some of 
the bureaus. In addition to concerns with corporate management, 
the IG continues to cite the Department's management of capital 
investments as a major management challenge. The IG 
specifically recommends that the Treasury needs to ensure 
consistency, cohesiveness, and economy among all bureaus by 
establishing clear lines of accountability, providing 
enterprise solutions for core business activities, and 
providing effective oversight of information technology 
investments and security.
    The Committee has approved the following significant 
program increases in the bill:
    Enhanced International Economic Policy Coordination 
+$618,000/+3 FTE.--The Department of the Treasury is charged 
with the critical task of fortifying economic relations with 
foreign countries and financial institutions, working toward 
creating a platform for global growth and security. To this 
end, it is necessary to enhance policy coordination and 
resources through the addition of regional experts. This 
initiative is for additional staff to support key policy 
dialogues with countries like China.
    CFIUS +$940,000/+4 FTE.--The Committee on Foreign 
Investment in the United States [CFIUS] is responsible for 
investigating the merger or acquisition of U.S. companies by 
foreign persons for national security implications. This 
function is mandated under the Exxon-Florio amendment to the 
Defense Production Act, and is managed by Treasury's Office of 
International Affairs on the Secretary's behalf. The 
significance of this work has grown exponentially with the 
growth of foreign investment into the United States and the 
sharp increase in transactions filed with CFIUS. Resources 
provided will be used to recruit investment flow analysts and 
other specialists.
    Economic Sanctions against State Terrorism +$1,392,000/+2 
FTE.--The Office of Foreign Assets Control [OFAC] is committed 
to combating terrorist networks and State sponsors of 
terrorism. New Executive orders with respect to Sudan and Syria 
were issued in 2006 and the administration is extensively 
engaged with respect to Iran. Each new Executive order and/or 
OFAC designation of terrorists and their financial networks 
brings with it increasing demands on OFAC's enforcement, 
licensing, compliance and administrative support components. 
Additional resources in these areas are provided to match the 
increased pace of new Executive orders and Treasury 
designations.
    Sanctions Against WMD Proliferation +$889,000/+2 FTE.--
Building on resources provided in fiscal year 2007 to fund the 
start-up of the sanctions program against WMD proliferation, 
the Committee provides additional resources to effectively 
implement and administer Executive Order 13382. These resources 
will be used to strengthen OFAC's ability to track, identify, 
and designate financiers and other supporters of WMD 
proliferation.
    Emerging National Security Threats +$1,973,000/+10 FTE.--
Eleven intelligence analysts (including three open-source 
analysts) and five production officers are provided to support 
the efforts of the Office of Intelligence Analysis [OIA] in 
addressing the most pressing and emerging national security 
issues; including transnational terrorist and illicit finance 
issues, as well as engaging in analyst exchanges with other 
national security and intelligence community agencies. This 
will also allow OIA to establish a permanent intelligence 
production structure, an essential component to the timely and 
accurate production of intelligence information.
    SCIF +$3,000,000/+0 FTE.--This initiative will provide for 
additional secure space to accommodate the new hires in OIA and 
OFAC's terrorism and WMD proliferation programs. The highly 
classified work of these expanding units can only be 
accomplished in specially constructed secure areas, known as 
Sensitive Compartmented Information Facilities [SCIF]. Adequate 
security infrastructure is critical to protecting the 
intelligence and national security functions of the Department. 
OIA's increasing reliance on highly classified intelligence 
information necessitates additional space requirements, as 
there is currently a lack of SCIF space in the Treasury 
building.
    Disrupt and Dismantle Financial Networks +$638,000/+2 
FTE.--This funding will provide the Office of Terrorist 
Financing and Financial Crimes [TFFC] with increased resources 
to devote specific policy advisors to critical regions in the 
Western Hemisphere, Africa and the Middle East-South Asia 
nexus. These regions present specific terrorist financing and 
financial crimes problems, including money laundering tied to 
narcotics and arms trafficking, and financial flows to 
terrorist organizations. The Middle East is of particular 
concern, as a number of countries continue to provide a base 
for terrorist fundraisers and financial supporters, 
particularly to South Asia-based terrorist groups. Additional 
policy advisors dedicated to these areas will allow the 
Treasury Department to bring together the U.S. Government tools 
available to law enforcement and national security agencies in 
the fight against terrorist financing and financial crime.
    Disrupt and Dismantle Rogue Regimes +$385,000/+2 FTE.--This 
initiative will fund additional policy advisors to cover North 
Korea, Iran, and Syria on pressing financial issues. This 
funding will allow the Treasury Department to fully leverage 
tactical successes to develop ongoing strategic approaches to 
bring additional financial pressures. This initiative is 
consistent with and in support of Executive Orders 13338 and 
13382 and section 311 of the USA PATRIOT Act.
    The Committee has included $1,500,000 for a study on energy 
externalities directed by section 1352 of Public Law 109-58. 
The true costs of energy are not always reflected in its retail 
price. Such costs or ``externalities'' can include pollution 
impacts, national security expenditures in the Middle East, 
climate risks, and many others. Congress included a requirement 
in the Energy Policy Act of 2005 for the Department of the 
Treasury to contract with the National Academy of Sciences to 
study these externalities and quantify them to the extent 
possible.
    The Committee has included $500,000 for the development of 
tailored, targeted materials and dissemination strategies to 
protect consumers against predatory lending and encourage the 
use of mainstream financial services. The Financial Literacy 
and Education Commission has developed a national strategy to 
promote financial literacy and education among all American 
consumers. Part of the national strategy is the development of 
tailored, targeted materials and dissemination strategies. 
Funds to help facilitate this part of the national strategy 
should be used to help protect individuals from predatory 
lending.
    Within the funds provided, the Committee has included 
$1,000,000 for a final payment to the Center for Resilient 
Financial Services e-Cavern Partnership. These funds, requested 
by Senator McConnell, will help secure the Nation's financial 
data by providing secure, remote financial transaction back-up 
storage systems.
    Terrorism and Financial Intelligence.--The committee 
recognizes the hard work of the Department of the Treasury in 
creating the Office of Terrorism and Financial Intelligence 
[TFI]. While the Committee supports the efforts that the 
Department has made to date, it strongly encourages the 
Department to build on this work by focusing in the next few 
years on stronger integration of the TFI's Office of 
Intelligence and Analysis [OIA] with the Intelligence community 
[IC]. In particular, OIA should harness the Treasury's unique 
expertise and assume a stronger leadership role in the IC on 
illicit finance issues. Accordingly, the Committee directs the 
Department's leadership to work with the Director of National 
Intelligence to develop a mission plan for financial 
intelligence. This plan should include ways that the IC can 
better coordinate its efforts. The Department should report to 
the committee by September 30, 2008, on its progress.
    The Committee has included $300,000 for TFI to create a 
permanent position which will be responsible for managing and 
overseeing all TFI information technology operations, 
activities, and needs. The position will focus particularly on 
the security of classified IT systems.
    TSDN.--The Committee recognizes the importance of 
stabilizing and enhancing the Treasury Secure Data Network 
[TSDN]. Due to the importance of this classified system, the 
Committee directs the Office of the Chief Information Officer 
to ensure that adequate resources are provided to administer 
and oversee the stabilization and enhancement of TSDN.
    Internet Gambling.--The Committee notes that the Treasury 
Department has not yet adopted effective regulations to 
implement the Unlawful Internet Gambling Enforcement Act 
[UIGEA]. The Committee notes that Congress directed the 
Department to implement, within 270 days after enactment of 
UIGEA, regulations that allow financial institutions to 
determine which financial transactions to block and which 
transactions to permit. The Committee further notes that these 
regulations should not put an undue burden on financial 
institutions or on their legitimate customers. Instead, UIGEA 
directs that the regulations should be written in a manner that 
can be clearly interpreted and enforced by the bank regulatory 
agencies and by the financial institutions seeking to enforce 
them. UIGEA also calls for regulations that permit institutions 
to choose from among different mechanisms for enforcement. The 
Committee expects that the regulations would provide for such 
flexibility, and would also encourage a dynamic mechanism for 
adapting to changes in circumstances such as identifying when 
gamblers change the accounts they use to receive funds.
    Information Security.--The Treasury Office of Inspector 
General [OIG] continues to cite the Department's information 
security as a management and performance challenge. 
Specifically, the Department faces serious challenges in 
bringing its systems into compliance with information 
technology security policies, procedures, standards, and 
guidelines. The Committee strongly urges the Department to 
address the OIG's findings and directs the Department to 
provide a status report to the Committee by March 1, 2008.
    Darfur Penalties.--The Committee strongly believes that the 
Department of the Treasury needs additional tools to enhance 
its ability to take effective deterrent action against 
sanctions violators. In a number of recent instances involving 
deliberate attempts to evade sanctions prohibitions, the 
monetary penalties available to the Department's Office of 
Foreign Assets Control [OFAC] did not rise to a level 
sufficient either to punish the level of misconduct or 
constitute an effective deterrent. Accordingly, the Committee 
has included a general provision (section 617) to increase 
available penalties under the International Emergency Economic 
Powers Act. The increased penalties will provide OFAC with 
significantly increased enforcement capability.

        DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2007....................................     $30,268,000
Budget estimate, 2008...................................      18,710,000
House allowance.........................................      18,710,000
Committee recommendation................................      18,710,000

                          PROGRAM DESCRIPTION

    The 1997 Treasury and General Government Appropriations Act 
established this account, which is authorized to be used by or 
on behalf of Treasury bureaus, at the Secretary's discretion, 
to modernize business processes and increase efficiency through 
technology investments, as well as other activities that 
involve more than one Treasury bureau or Treasury's interface 
with other Government agencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $18,710,000 
for Department-wide systems and capital investment program 
[DSCIP]. This amount is equal to the budget request and 
$11,558,000 below the fiscal year 2007 enacted level.
    The following table compares the Committee recommendation 
with the budget request and the fiscal year 2007 enacted 
levels.

----------------------------------------------------------------------------------------------------------------
                                                                    Fiscal year     Fiscal year      Committee
                        DSCIP Initiative                           2007 enacted   2008 requested  recommendation
----------------------------------------------------------------------------------------------------------------
Critical Infrastructure Protection--Financial Institutions......      $2,093,000  ..............  ..............
Cyber Security--Critical Infrastructure Protection (Treasury)...  ..............        $400,000        $400,000
Cyber Security--Information Security............................       2,244,000       1,844,000       1,844,000
DO/Treasury Backup Disaster Recovery............................       1,656,000       4,000,000       4,000,000
E-Government Enterprise Architecture............................  ..............         300,000         300,000
E-Government Initiatives........................................       2,209,000       2,166,000       2,166,000
Enterprise Content Management...................................  ..............       6,000,000       6,000,000
Integrated Wireless Network.....................................  ..............       2,000,000       2,000,000
Treasury Financial Intelligence Network.........................      21,200,000  ..............  ..............
Treasury Secure Data Network....................................         867,000       2,000,000       2,000,000
                                                                 -----------------------------------------------
      Total.....................................................      30,269,000      18,710,000      18,710,000
----------------------------------------------------------------------------------------------------------------

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $16,957,000
Budget estimate, 2008...................................      18,450,000
House allowance.........................................      18,450,000
Committee recommendation................................      18,450,000

                          PROGRAM DESCRIPTION

    As a result of the 1988 amendments to the Inspector General 
[IG] Act, the Secretary of the Treasury established the Office 
of Inspector General [OIG] in 1989.
    The OIG conducts and supervises audits, evaluations, and 
investigations designed to: (1) promote economy, efficiency, 
and effectiveness and prevent fraud, waste, and abuse in 
departmental programs and operations; and (2) keep the 
Secretary and Congress fully and currently informed of problems 
and deficiencies in the administration of departmental programs 
and operations. The audit function provides program audit, 
contract audit and financial statement audit services. Contract 
audits provide professional advice to agency contracting 
officials on accounting and financial matters relative to 
negotiation, award, administration, repricing, and settlement 
of contracts. Program audits review and audit all facets of 
agency operations. Financial statement audits assess whether 
financial statements fairly present the agency's financial 
condition and results of operations, the adequacy of accounting 
controls, and compliance with laws and regulations. These 
audits contribute significantly to improved financial 
management by helping Treasury managers identify improvements 
needed in their accounting and internal control systems. The 
evaluations function reviews program performance and issues 
critical to the mission of the Department, including assessing 
the Department's implementation of the Government Performance 
and Results Act [GPRA]. The investigative function provides for 
the detection and investigation of improper and illegal 
activities involving programs, personnel, and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $18,450,000 
for salaries and expenses of the Office of Inspector General. 
This amount is the same as the budget request and $1,493,000 
above the fiscal year 2007 enacted level.

           TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

                         SALARIES AND EXPENSES

Appropriations, 2007....................................    $132,861,000
Budget estimate, 2008...................................     140,533,000
House allowance.........................................     140,533,000
Committee recommendation................................     140,533,000

                          PROGRAM DESCRIPTION

    The Treasury Inspector General for Tax Administration 
[TIGTA] was established by the IRS Restructuring and Reform Act 
of 1998 (Public Law 105-206). TIGTA was created to provide 
independent audit and investigative services necessary to 
improve the quality and credibility of oversight of Internal 
Revenue Service [IRS]. Funding was first appropriated for this 
account in the fiscal year 2000 Treasury and General Government 
Appropriations Act (Public Law 106-58).
    TIGTA conducts audits, investigations, and evaluations to 
assess the operations and programs IRS and related entities, 
the IRS Oversight Board and the Office of Chief Counsel to (1) 
promote the economic, efficient and effective administration of 
the Nation's tax laws and to detect and deter fraud and abuse 
in IRS programs and operations; and (2) recommend actions to 
resolve fraud and other serious problems, abuses, and 
deficiencies in these programs and operations, and keep the 
Secretary and Congress fully and currently informed of these 
issues and the progress made in resolving them. TIGTA reviews 
existing and proposed legislation and regulations relating to 
the programs and operations of the IRS and related entities and 
makes recommendations concerning the impact of such legislation 
and regulations on the economy and efficiency in the 
administration of programs and operations of the IRS and 
related entities. The audit function provides program audit, 
limited contract audit and financial audit services. Program 
audits review and audit all facets of IRS and related entities 
in an effort to improve IRS systems and operations, while 
ensuring fair and equitable treatment of taxpayers. Contract 
audits focus on invoices/vouchers submitted to the IRS to 
determine whether charges are valid and to identify erroneous 
and improper payments. The investigative function provides for 
the detection and investigation of improper and illegal 
activities involving IRS programs and operations and protects 
the IRS and related entities against external attempts to 
corrupt or threaten the administration of the tax laws.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $140,533,000 
for the Treasury Inspector General for Tax Administration. This 
amount is an increase of $7,672,000 above the fiscal year 2007 
enacted level and the same as the budget request.
    The Committee commends TIGTA for its ongoing review of the 
IRS's business systems modernization program and other 
information technology projects. The Committee also 
acknowledges the critical importance of the priorities TIGTA 
has identified for fiscal year 2008, including ensuing the 
privacy and security of taxpayer information from internal and 
extremal threats. The Committee urges continued TIGTA oversight 
of tax gap issues, including data reliability, enforcement law, 
and taxpayer assistance, to ensure that the IRS enhances 
voluntary compliance by balancing taxpayer services and 
enforcement without jeopardizing taxpayer rights.

            AIR TRANSPORTATION STABILIZATION PROGRAM ACCOUNT

Appropriations, 2007....................................................
Budget estimate, 2008...................................     -$3,600,000
House allowance.........................................      -3,600,000
Committee recommendation................................      -3,600,000

                          PROGRAM DESCRIPTION

    The Air Transportation Safety and System Stabilization Act, 
Public Law 107-42, established the Air Transportation 
Stabilization Board.

                        COMMITTEE RECOMMENDATION

    The Committee does not provide any appropriation funding, 
as requested, for the Air Transportation Stabilization Program 
for fiscal year 2008. Bill language, as requested, is included 
that terminates the program and rescinds all unobligated 
balances.

                  Financial Crimes Enforcement Network

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $73,216,000
Budget estimate, 2008...................................      85,844,000
House allowance.........................................      83,344,000
Committee recommendation................................      85,844,000

                          PROGRAM DESCRIPTION

    The Financial Crimes Enforcement Network [FinCEN], a bureau 
within the Treasury Department's Office of Terrorism and 
Financial Intelligence, is the largest overt collector of 
financial intelligence in the United States. FinCEN's mission 
is to safeguard the financial system from the abuses of 
financial crime, including terrorist financing, money 
laundering and other illicit activity. FinCEN accomplishes its 
mission by administering the Bank Secrecy Act, a collection of 
statutes that form the Nation's anti-money laundering/counter-
terrorist financing regulatory regime. As the delegated 
administrator of the Bank Secrecy Act, FinCEN is responsible 
for the development and implementation of regulations, rules 
and guidance issued under the Bank Secrecy Act. FinCEN also 
oversees the work of eight Federal agencies that have been 
delegated responsibility to examine various sectors of the 
financial industry for compliance with the Bank Secrecy Act's 
requirements. FinCEN is responsible for collecting, 
maintaining, and disseminating the information reported by 
financial institutions under the Bank Secrecy Act through a 
Government-wide access service. In coordination with Treasury's 
Office of Intelligence and Analysis, FinCEN analyzes this 
financial information and other information and intelligence to 
develop both strategic and tactical analytical products that 
support law enforcement, intelligence and regulatory agencies. 
FinCEN is the United States' Financial Intelligence Unit [FIU] 
and a founding member of the Egmont Group of Financial 
Intelligence Units. As the United States FIU, FinCEN routinely 
shares information and cooperates with other FIUs around the 
world to address the global problems of terrorist financing, 
money laundering, and other illicit activity.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $85,844,000 for the Financial 
Crimes Enforcement Network [FinCEN]. This amount is $12,628,000 
above the fiscal year 2007 enacted level and the same as the 
budget request.
    The bill includes the following program increases for 
fiscal year 2008:
    Disaster Recovery Capability +$743,000/+0 FTE.--Funds are 
included to provide ongoing site maintenance, 
telecommunications and system hosting for the critical 
information technology system disaster recovery site 
established in fiscal year 2007 through redirection of one-time 
prior year funding. By establishing this capability for 
critical system redundancy, FinCEN has reduced the system 
recovery time from 6 months to 4 hours and significantly 
reduced the risk of losing access to critical systems.
    Enhance Project Management Capability +$1,750,000/+4 FTE.--
FinCEN requires additional resources to meet OMB, Treasury and 
GAO recognized requirements to improve its project management 
capability. A recent review of FinCEN's programs has identified 
a need to strengthen project management practices throughout 
the organization, including both information technology and 
non-information technology projects. A portion of this 
initiative will fund IT program and support activities 
including capital planning, enterprise architecture, 
information security, and contractor technical assistance.

                      Financial Management Service

                         SALARIES AND EXPENSES

Appropriations, 2007....................................    $235,381,000
Budget estimate, 2008...................................     235,191,000
House allowance.........................................     234,423,000
Committee recommendation................................     235,191,000

                          PROGRAM DESCRIPTION

    In 1940, the United States Department of the Treasury 
established the Fiscal Service, which consisted of the Bureau 
of Accounts, the Bureau of the Public Debt, and the Office of 
the Treasurer. A 1974 reorganization of the Fiscal Service 
created the Bureau of Government Financial Operations, which 
was formed from a merger of the Bureau of Accounts and most 
functions of the Office of the Treasurer. In 1984, the Bureau 
of Government Financial Operations was renamed the Financial 
Management Service [FMS].
    FMS implements payment policy and procedures for the 
Federal program agencies, issues and distributes payments, 
promotes the use of electronics in the payment process, and 
assists agencies in converting payments from paper checks to 
electronic funds transfer [EFT]. FMS also provides debt 
collection operational services to client agencies and 
implements collections policy, regulations, standards and 
procedures for the Federal Government and assists agencies in 
converting collections from paper to electronic media.
    FMS also provides financial accounting, reporting, and 
financing services to the Federal Government and the 
Government's agents who participate in the payments and 
collections process by generating a series of daily, monthly, 
quarterly and annual Government-wide reports. FMS also works 
directly with agencies to help reconcile reporting differences.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $235,191,000 for salaries and 
expenses for FMS. This amount is the same as the budget request 
and $190,000 below the fiscal year 2007 enacted level.

                Alcohol and Tobacco Tax and Trade Bureau

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $90,618,000
Budget estimate, 2008...................................      93,515,000
House allowance.........................................      93,515,000
Committee recommendation................................      97,015,000

                          PROGRAM DESCRIPTION

    The Homeland Security Act created the Alcohol and Tobacco 
Tax and Trade Bureau [TTB] within the Department of the 
Treasury and charged TTB with collecting revenue and protecting 
the public.
    TTB enforces the Federal laws and regulations relating to 
alcohol and tobacco. TTB works directly and in cooperation with 
others to maintain a sound revenue management and collection 
system that continues to reduce the regulatory burden, improve 
service, collect the revenue due, and prevent tax evasion and 
other criminal conduct. The TTB is also responsible for 
preventing consumer deception, ensuring that regulated products 
comply with Federal commodity, safety, and distribution 
requirements, and providing high quality customer service.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $97,015,000 for TTB for fiscal 
year 2008. This amount is an increase of $3,500,000 over the 
budget request and an increase of $6,397,000 over the fiscal 
year 2007 enacted level. The increase over the budget request 
is to begin to address the replacement of obsolete IT 
equipment.

                    Bureau of Engraving and Printing

                          PROGRAM DESCRIPTION

    The Bureau of Engraving and Printing [BEP] has been the 
sole manufacturer of U.S. paper currency for almost 150 years. 
The origin of the BEP is traced to an Act of Congress passed on 
February 25, 1862, 12 Stat. 345, authorizing the Secretary of 
the Treasury to issue a new currency--United States notes. 
While this law was the cornerstone authority for the operations 
of the engraving and printing division of the Treasury for many 
years, it was not until an Act of June 20, 1874, 18 Stat. 100, 
that the Congress first referred to this division as the 
``Bureau of Engraving and Printing.'' The Bureau's status as a 
distinct bureau within the Department of the Treasury was 
solidified by section 1 of the Act of June 4, 1897, 30 Stat. 
18, which placed all of the business of the BEP under the 
immediate control of a director, subject to the direction of 
the Secretary of the Treasury. The 1897 law is now codified in 
31 U.S.C. 303.
    The BEP designs, manufactures, and supplies Federal Reserve 
notes, and other security documents issued by the Federal 
Government.
    The operations of the BEP are currently financed by means 
of a revolving fund established in accordance with the 
provisions of Public Law 656, August 4, 1950 (31 U.S.C. 181), 
which requires the BEP to be reimbursed by customer agencies 
for all costs of manufacturing products and services performed. 
The BEP is also authorized to assess amounts to acquire capital 
equipment and provide for working capital needs.
    No direct appropriation is required to cover the activities 
of the BEP.

                       Bureau of the Public Debt

                     ADMINISTERING THE PUBLIC DEBT

Appropriations, 2007....................................    $177,623,000
Budget estimate, 2008...................................     172,871,000
House allowance.........................................     172,871,000
Committee recommendation................................     172,871,000

                          PROGRAM DESCRIPTION

    The Public Debt Service was formed in 1919 with the 
appointment of the first Commissioner of the Public Debt. The 
Public Debt Service took general charge of debt operations 
including debt accounting and securities issue and retirement, 
which had been conducted by several independent divisions 
within the Treasury. Acting under the authorization of the 
Reorganization Act of 1939, the President created the Bureau of 
the Public Debt, which was established as part of the Fiscal 
Service in the Department of the Treasury effective June 30, 
1940, (31 U.S.C. 306). In 1993, the Savings Bonds Division, a 
separate organization, was made part of the Bureau.
    This appropriation provides funds for the conduct of all 
public debt operations and the promotion of the sale of U.S. 
savings-type securities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends the budget request level of 
$172,871,000 for the Bureau of the Public Debt for fiscal year 
2008. This amount is a reduction of $4,752,000 below the fiscal 
year 2007 enacted level.

           Community Development Financial Institutions Fund

   COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM ACCOUNT

Appropriations, 2007....................................     $54,506,000
Budget estimate, 2008...................................      28,557,000
House allowance.........................................     100,000,000
Committee recommendation................................      90,000,000

                          PROGRAM DESCRIPTION

    The Community Development Financial Institutions Fund makes 
investments in the form of grants, loans, equity investments, 
deposits, and technical assistance grants to new and existing 
community development financial institutions [CDFIs], through 
the CDFI program. CDFIs include community development banks, 
credit unions, venture capital funds, revolving loan funds, and 
microloan funds, among others. Recipient institutions engage in 
lending and investment for affordable housing, small business 
and community development within underserved communities. The 
CDFI Fund administers the Bank Enterprise Award [BEA] Program, 
which provides a financial incentive to insured depository 
institutions to undertake community development finance 
activities. The CDFI Fund also administers the New Markets Tax 
Credit Program, a program that provides an incentive to 
investors in the form of a tax credit, which is expected to 
stimulate private community and economic development 
activities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $90,000,000 for the CDFI Fund, 
which is $35,494,000 above the fiscal year 2007 enacted level 
and $61,443,000 above the budget request.
    The Committee is again concerned about the proposed 
reductions to CDFI and the respective programs within CDFI, 
such as the Bank Enterprise Award [BEA]. These programs play an 
important role in providing financial services to underserved 
communities in both urban and rural communities across the 
country. The Committee expects the BEA program to be funded in 
accordance with the authorizing statute, 12 U.S.C. 4718(a)(4).
    The Committee recommends a set-aside of $8,000,000 for 
grants, loans, and technical assistance and training programs 
to benefit Native American, Alaskan Natives, and Native 
Hawaiian communities in the coordination of development 
strategies, increased access to equity investments, and loans 
for development activities.

                           United States Mint

               UNITED STATES MINT PUBLIC ENTERPRISE FUND

                          PROGRAM DESCRIPTION

    The United States Mint manufactures coins, sells numismatic 
and investment products, and provides for security and asset 
protection. Public Law 104-52 established the U.S. Mint Public 
Enterprise Fund (the Fund). The Fund encompasses the previous 
Salaries and Expenses, Coinage Profit Fund, Coinage Metal Fund, 
and the Numismatic Public Enterprise Fund. The Mint submits 
annual audited business-type financial statements to the 
Secretary of the Treasury and to Congress in support of the 
operations of the revolving fund.
    The operations of the Mint are divided into two major 
activities: Manufacturing and Sales (including circulating 
coinage and numismatic and investment products); and 
Protection. The Mint is credited with receipts from its 
circulating coinage operations, equal to the full cost of 
producing and distributing coins that are put into circulation, 
including depreciation of the Mint's plant and equipment on the 
basis of current replacement value. Those receipts pay for the 
costs of the Mint's operations, which include the costs of 
production and distribution. The difference between the face 
value of the coins and these costs are profits, which is 
deposited as seigniorage to the general fund. In fiscal year 
2006, the Mint transferred $750,000,000 to the general fund. 
Any seigniorage used to finance the Mint's capital acquisitions 
is recorded as budget authority in the year that funds are 
obligated for this purpose and as receipts over the life of the 
asset.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a spending level of $33,200,000 
for circulating coinage and protective service capital 
investments for the Mint. This amount is an increase of 
$6,432,000 above the fiscal year 2007 enacted level and is 
equal to the budget request.

                        Internal Revenue Service

                          PROGRAM DESCRIPTION

    The Internal Revenue Service [IRS] administers the Nation's 
tax laws and collects the revenue that funds most of the 
Federal Government's operations and public services. The IRS's 
mission is to provide taxpayers with quality service by helping 
them understand and meet their tax responsibilities and by 
applying the tax law with integrity and fairness to all. The 
IRS focuses its enforcement programs toward increasing 
voluntary tax compliance by deterring taxpayers inclined to 
evade their tax obligations while vigorously pursuing those who 
violate the law. Each year, IRS employees deal directly with 
more American taxpayers than any other institution, public or 
private. In 2006, the IRS collected more than 
$2,200,000,000,000 in revenue and processed more than 208 
million tax returns. During the 2006 filing season, more than 
half of all individual taxpayers (nearly 68 million) filed 
electronically. Also, in 2006, the IRS provided assistance to 
taxpayers more than 95 million times through toll-free 
telephone lines, correspondence or visits to its more than 400 
offices nationwide. An important focus for the IRS in recent 
years has been to undertake a major modernization of its 
systems, including expanding its Internet services, and 
business operations to better serve taxpayers and enforce the 
law.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $11,141,610,000 for the Internal 
Revenue Service for fiscal year 2008. This is an increase of 
$544,544,000 above the fiscal year 2007 enacted level and 
$46,111,000 above the budget request.
    Appropriations Account Structure.--Section 21051 of Public 
Law 110-5 established a new appropriations account structure 
beginning with fiscal year 2007. Under this structure, the 
IRS's activities are more properly aligned to budget activities 
by creating new ``Taxpayer Services'', ``Enforcement'', and 
``Operations Support'' accounts in place of the former 
``Processing, Assistance, and Management'', ``Tax Law 
Enforcement'', and ``Information Systems'' accounts. The 
``Business Systems Modernization'' and ``Health Insurance Tax 
Credit Administration'' accounts are maintained. The Committee 
expects the IRS to continue to comport with this revised 
account structure.
    Tax Gap.--The vast majority of Americans pay their fair 
share of taxes, yet there is still a ``tax gap.'' The tax gap 
is the difference between what taxpayers are supposed to pay 
and what they actually do pay. In its update of the results of 
a 3-year study, the IRS found that for tax year 2001, about 84 
percent of owed taxes were paid voluntarily and timely. 
However, a significant number of taxpayers do not comply with 
the Tax Code resulting in an estimated gross tax gap of 
$345,000,000,000. The IRS estimates that after enforcement and 
other late payments are factored into the gross tax gap, the 
net tax gap is about $290,000,000,000. The most current 
estimate of the tax gap remains largely unchanged from the 
IRS's initial update conducted in 2006, and has remained 
relatively stable for the past three decades based on previous 
IRS studies. The accuracy of the tax gap, however, is uncertain 
given the use of outdated and incomplete information and 
questionable methodology. Some experts, including the GAO and 
TIGTA, believe that the tax gap may actually be higher than 
estimated by the IRS. The Committee strongly believes that the 
IRS must and can reduce the tax gap if the IRS is given 
additional resources and is able to improve its operational 
capabilities (most notably through the Business Systems 
Modernization program).
    To reduce the tax gap, the IRS's budget request has set a 
goal of increasing the voluntary compliance rate from a current 
estimate of about 83.7 percent to 85 percent by 2009. However, 
the budget request does not include a strategic plan to achieve 
this goal. To reduce the tax gap, experts recommend a number of 
approaches, including: improving information reporting, 
improving taxpayer services, increasing research on 
noncompliance, improving the partnership between the IRS and 
the tax administration community, and leveraging technology to 
improve IRS's systems. The Committee supports all of these 
approaches in combination and believes that the administration 
must develop a detailed business plan on how it will reduce the 
tax gap. Accordingly, the Committee has included an 
administrative provision that requires the IRS to develop a 
detailed, strategic plan that demonstrates how it will achieve 
and how it will measure the voluntary compliance goal of 85 
percent by 2009.
    The Committee notes that as part of its budget submission, 
the IRS proposes 16 legislative reforms to recoup 
$29,000,000,000, or 10 percent of the $290,000,000,000 net tax 
gap over 10 years. The Committee is concerned that such an 
approach is far from aggressive, and amounts to a meager return 
of a penny on the dollar.
    Operating Plan and Notification.--In addition to the normal 
operating plan requirements detailed in the introduction in 
this report, the Committee directs the IRS to include details 
on any planned reorganization, job reductions or increases to 
offices or activities within the agency, and modifications to 
any service or enforcement activity. Some past examples that 
would qualify under this directive include: the Modernization 
and Information Technology Systems [MITS] reorganization and 
the proposed closure of taxpayer assistance centers. The 
Committee also directs the IRS to obtain the approval of the 
IRS Oversight Board prior to submitting its operating plan to 
the Committee. Further, the IRS should promptly notify the 
Committee and the IRS Oversight Board if there are any 
substantial changes of these plans.
    The Committee remains concerned about any efforts to reduce 
significantly taxpayer services, including face-to-face 
services. Therefore, the Committee directs that if the IRS 
proposes further reductions in taxpayer services, such 
reductions must be consistent with the budget justification, 
operating plan, and Taxpayer Assistance Blueprint, and the IRS 
must demonstrate that such reductions will not result in a 
decline in voluntary compliance. Where such reductions involve 
a reduction in face-to-face service, the IRS must demonstrate 
that the proposed reductions do not adversely impact compliance 
by taxpayers who are dependent on such services, by showing, 
through such means as a successful pilot program, survey, or 
other empirical study, that there is an effective and viable 
service alternative available.
    IRS Staffing Plans.--The Committee continues to support 
adequate staffing levels for effective tax administration and 
supports the staffing plans for the Internal Revenue Service 
facilities in the communities of Martinsburg and Beckley, West 
Virginia. Therefore, the Committee urges the IRS, within the 
constraints of the fiscal year 2008 funding levels, to make no 
staffing reductions at the Martinsburg National Computing 
Center and the programmed level at the Finance Center in 
Beckley, West Virginia. Further, the Committee directs the IRS 
to provide an annual report to the Committee on its efforts to 
protect and increase staffing levels at the Martinsburg and 
Beckley IRS facilities.
    The Committee is concerned about potential reduction or 
elimination of submission processing activities, including 
reductions in force, at the IRS Philadelphia and Andover 
Service Centers. The Committee includes bill language 
precluding the IRS from spending any funds on any such 
reduction or elimination until the IRS has submitted to the 
House and Senate Appropriations Committees a detailed report 
that reviews the potential for transferring submission 
processing employees to Automated Collection System [ACS] 
positions within their commuting area. The Committee directs 
that this report shall include an estimate of additional ACS 
positions that could be funded, including training costs, with 
levels of funding the IRS expects to spend for activities under 
26 U.S.C. 6306; an estimate of the increased collections in 
fiscal year 2008 and from fiscal year 2008 through fiscal year 
2012 due to these increased ACS positions; and an assessment of 
placement of additional ACS positions in the Philadelphia and 
Andover Service Centers.
    Taxpayer Services in Alaska and Hawaii.--Given the remote 
distance of Alaska and Hawaii from the U.S. mainland and the 
difficulty experienced by Alaska and Hawaii taxpayers in 
receiving needed tax assistance by the national toll-free line, 
it is imperative that the Taxpayer Advocate Service Center in 
each of these States is fully staffed and capable of resolving 
taxpayer problems of the most complex nature. The Committee 
directs the Internal Revenue Service to continue to staff each 
Taxpayer Advocate Service Center in each of these States with a 
Collection Technical Advisor and an Examination Technical 
Advisor in addition to the current complement of office staff.

                           TAXPAYER SERVICES

Appropriations, 2007....................................  $2,138,238,000
Budget estimate, 2008...................................   2,103,089,000
House allowance.........................................   2,155,000,000
Committee recommendation................................   2,149,200,000

                          PROGRAM DESCRIPTION

    The Taxpayer Services appropriation provides for taxpayer 
services, including forms and publications; processing tax 
returns and related documents; filing and account services; 
taxpayer advocacy services; and assisting taxpayers to 
understand their tax obligations, correctly file their returns, 
and pay taxes due in a timely manner.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,149,000,000 for Taxpayer 
Services, which is $10,962,000 above the fiscal year 2007 
enacted level and $46,111,000 above the budget request. Bill 
language is included providing not less than $3,000,000 for the 
tax counseling for the elderly program, not less than 
$9,000,000 for low-income taxpayer clinic grants, and not less 
than $10,000,000 to establish and administer a community 
volunteer income tax assistance matching grant program for tax 
return preparation assistance.
    Taxpayer Assistance Blueprint.--In response to the 
Committee's directive in the fiscal year 2006 Treasury 
Appropriations Act, the IRS, in consultation with the IRS 
Oversight Board and the National Taxpayer Advocate, began 
developing a ``Taxpayer Assistance Blueprint'' to develop a 5-
year strategic plan on taxpayer services. As directed by the 
Committee, the IRS is reviewing its current portfolio of 
taxpayer services and exploring other types of services to meet 
the needs of taxpayers. Further, this plan will detail how it 
plans to meet the service needs on a geographic basis (by State 
and major metropolitan area), including any proposals to 
realign existing resources to improve taxpayer access to 
services, and address how the plan will improve taxpayer 
service based on reliable data on taxpayer service needs. The 
plan will also address efforts to expand efforts to partner 
with State and local governments and private entities to 
improve taxpayer services. The Committee commends the IRS, the 
IRS Oversight Board, and the National Taxpayer Advocate for 
their time and efforts on the Blueprint. Further, the Committee 
appreciates the efforts to conduct research on taxpayer needs 
and taxpayer service performance.
    The Committee directs the IRS, the IRS Oversight Board, and 
the National Taxpayer Advocate to submit annually to Congress 
an updated Taxpayer Assistance Blueprint identifying any 
changes to its strategic plan for taxpayer service, including 
any research and relevant findings completed to date, and any 
open issues requiring additional research.
    E-Filing.--The Committee is disappointed with the IRS's 
performance in increasing the number of tax filers who submit 
their returns electronically and without additional cost. Most 
experts, including the IRS Oversight Board, believe that the 
IRS will not meet its congressionally mandated goal of having 
80 percent of tax returns filed electronically by 2007. 
Accordingly, the Committee directs the IRS, in consultation 
with stakeholders, such as the National Taxpayer Advocate, to 
develop a detailed strategic plan to meet the 80 percent e-File 
goal. This plan should address alternate electronic filing 
strategies, including Telefile and 2-D Bar Coding and methods 
of e-filing directly with the IRS for free. This plan should be 
submitted to the House and Senate Committees on Appropriations 
by no later than March 1, 2008.
    The Committee believes that the IRS will provide better 
taxpayer service, achieve improved compliance, and reduce the 
tax gap if taxpayer behavior is better understood and applied 
research is integrated into the development of taxpayer service 
and enforcement initiatives. Toward that end, the Committee 
directs the National Taxpayer Advocate and the IRS Office of 
Research to report to the Appropriations Committees of the 
House and Senate by September 30, 2008, on factors that 
influence taxpayer compliance behavior, including how and the 
extent to which each factor influences taxpayer compliance 
behavior. The report shall also make recommendations for the 
establishment of a cognitive learning and applied research 
laboratory.
    EITC.--The Committee is concerned that many low-income 
taxpayers and their families are having their Earned Income Tax 
Credit [EITC] benefits unnecessarily diminished through high-
cost, short-term products such as refund anticipation loans 
[RALs]. The Committee directs the Internal Revenue Service, in 
consultation with the National Taxpayer Advocate, to educate 
consumers about the costs associated with these products and 
expand access to alternative methods of obtaining timely tax 
refunds.
    Community Volunteer Income Tax Assistance.--The Volunteer 
Income Tax Assistance [VITA] program is an important aspect of 
the IRS' efforts to provide income tax preparation assistance 
programs for low-income taxpayers. The Committee provides 
$10,000,000 to the IRS specifically for exclusive use as part 
of a matching grant program to be established and administered 
by the IRS for not for profit organizations which provide 
volunteer income tax return preparation services for lower 
income individual taxpayers. The IRS shall operate this 
matching grant program in a manner similar to the Low Income 
Taxpayer Clinic Program.
    The IRS is not permitted to treat any in-kind contributions 
from the IRS as counting toward the $10,000,000 appropriation 
nor shall the IRS reduce any current contributions toward tax 
return preparation services. As the IRS develops and promotes 
this grant program, the Committee strong urges the IRS to take 
steps to address the problems identified by both the GAO and 
the TIGTA regarding the accuracy of tax preparation services 
provided at VITA sites in the past.
    Charitable Exempt Organizations.--The Committee is 
encouraged by recent IRS actions to invest greater resources in 
activities that educate charitable exempt organizations about 
their obligations under the tax code, helping to increase 
voluntary compliance and strengthen charities' ability to 
improve lives and communities. The Committee anticipates that 
the IRS will utilize the increased resources in this 
appropriation to continue to expand outreach to and education 
of charitable organizations, particularly in light of recent, 
sweeping changes to tax-exempt laws in the Pension Protection 
Act and other statutes.
    IRS Free File Program.--The Free File Program allows 
taxpayers meeting certain income requirements to electronically 
prepare and file their income tax returns free of charge. The 
IRS administers the Program as a partnership with the Free File 
Alliance, a consortium of tax software companies. The Committee 
is concerned about the findings of a recent TIGTA audit report 
reflecting a substantial drop in usage of the program. Although 
93 million taxpayers were eligible for the program in calendar 
year 2006, only 3.9 million filers (4.2 percent) participated 
in 2006, down from the 5.12 million taxpayers using Free File 
in 2005. As of April 14, 2007, only 3.3 million taxpayers had 
filed using the free service. The Committee is concerned that 
this decline in usage could keep the IRS from meeting the 
congressionally-mandated goal of having 80 percent of the 
Federal income tax returns filed electronically by the end of 
2007. The Committee strongly urges the IRS to examine the 
reasons why eligible taxpayers are not using the program, and 
to place a high priority on addressing the recommendations for 
improved marketing and administration of the program as 
outlined by TIGTA. The Committee further urges the IRS to 
devote the resources necessary to ensure that individual 
taxpayers who come to the IRS Website are not subjected to 
cross-marketing and selling activity when utilizing Free File. 
The IRS should likewise promote public awareness of the 
availability of this program among those who can most benefit 
from its free services, particularly lower income, 
disadvantaged, the working poor and other underserved 
populations.

                              ENFORCEMENT

Appropriations, 2007....................................  $4,686,478,000
Budget estimate, 2008...................................   4,925,498,000
House allowance.........................................   4,925,498,000
Committee recommendation................................   4,925,498,000

                          PROGRAM DESCRIPTION

    The Enforcement appropriation provides for the examination 
of tax returns, both domestic and international; the 
administrative and judicial settlement of taxpayer appeals of 
examination findings; technical rulings; monitoring employee 
pension plans; determining qualifications of organizations 
seeking tax-exempt status; examining tax returns of exempt 
organizations; enforcing statutes relating to detection and 
investigation of criminal violations of the internal revenue 
laws; identifying under reporting of tax obligations; securing 
unfiled tax returns; and collecting unpaid accounts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends the budget request level of 
$4,925,498,000 for enforcement activities for fiscal year 2008. 
This amount is $239,020,000 above the fiscal year 2007 enacted 
level and the same as the budget request. Bill language is 
included to transfer not less than $57,252,000 to the 
Interagency Crime and Drug Enforcement [ICDE] program and to 
transfer up to $10,000,000 from enforcement to the Operations 
Support account to support the ICDE program.
    National Research Program.--The Committee strongly supports 
the work of the National Research Program [NRP] to increase 
understanding on the tax gap. While the IRS's NRP has done a 
commendable job in updating the tax gap estimates, there remain 
significant challenges in both obtaining complete and timely 
data and developing reliable methods for interpreting the data. 
The IRS and others have expressed concerns with the certainty 
of the overall tax gap estimate in part because some areas of 
the estimate rely on old data (from the 1970s and 1980s) and it 
has no estimates for other areas of the tax gap. GAO, TIGTA, 
the National Taxpayer Advocate, and the IRS Oversight Board 
also have all recommended greater and more frequent data 
collection and studies of the tax gap. The Committee agrees 
with this recommendation. Accordingly, the Committee directs 
the IRS to submit a detailed research plan that will address 
the shortfalls in the NRP. The plan should include the use of a 
rolling sample, which was recommended by the IRS Oversight 
Board and GAO that covers all types of tax returns. Under this 
approach, one-fifth of the sample could be collected every 
year. The plan should include cost estimates of implementing 
the plan. The plan should be developed in consultation with the 
National Taxpayer Advocate and approved by the IRS Oversight 
Board prior to its submission to the House and Senate 
Committees on Appropriations by no later than March 1, 2008. 
Finally, to cover the costs of implementing the plan, the 
Committee encourages the IRS to request the use of unobligated 
funds as part of the reprogramming authority provided under 
this act.
    The Committee believes that an understanding of the causes 
of inadvertent noncompliance and the role of preparers in 
facilitating both inadvertent and intentional noncompliance 
will improve tax administration and should inform IRS's 
allocation of resources. Thus, in administering its NRP for 
fiscal year 2008, the Committee directs the IRS to collect 
information on the causes of noncompliance, including 
inadvertent noncompliance, the type of return preparation 
method (self, volunteer, paid preparer, or IRS preparer), 
whether the taxpayer was represented during the examination, 
and the extent to which that taxpayer sought and received IRS 
services. The Committee further directs the IRS to use an 
independent external survey firm to conduct interviews with NRP 
taxpayers in order to identify the causes of taxpayer 
noncompliance. The Committee directs the National Taxpayer 
Advocate to assist with this effort.
    Misclassification of Contractors.--The Committee is 
concerned with the misclassification of workers as independent 
contractors, who file using IRS Form 1099. Many of these 
workers should be correctly classified as employees and should 
file using W-2 forms. This misclassification leads to the 
underreporting and underpayment of employment and payroll taxes 
by employers and individuals, which accounts for a substantial 
portion of the gross tax gap. Therefore, the Committee strongly 
urges the IRS to provide increased tax enforcement in 
industries where misclassification of employees is widespread.
    Charitable Exempt Organizations.--The Committee notes 
Congress' recent enactment of sweeping changes to the tax laws 
governing charitable exempt organizations that will help 
strengthen the accountability and transparency of the nonprofit 
community. The Committee is aware that funding for Internal 
Revenue Service oversight of exempt organizations has remained 
relatively constant over the past 20 years while the nonprofit 
community has nearly doubled in size and grown in complexity.

                           OPERATIONS SUPPORT

Appropriations, 2007....................................  $3,544,835,000
Budget estimate, 2008...................................   3,769,587,000
House allowance.........................................   3,769,587,000
Committee recommendation................................   3,769,587,000

                          PROGRAM DESCRIPTION

    The Operations Support appropriation provides for overall 
planning and direction of the IRS including shared service 
support related to facilities services, rent payments, 
printing, postage, and security; other support functions that 
are considered overhead but essential to the successful 
operation of IRS programs including resources for headquarters 
management activities, including IRS-wide support for strategic 
planning, communications and liaison, finance, human resources, 
EEO and diversity; research and statistics of income; and 
necessary expenses for information systems and 
telecommunication support, including developmental information 
systems and operational information systems.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,769,587,000 for Operations 
Support for fiscal year 2008. This amount is $224,752,000 above 
the fiscal year 2007 enacted level and the same as the budget 
request. Bill language is included allowing $75,000,000 of 
these funds to remain available until September 30, 2009 for 
information technology support and not to exceed $1,000,000 to 
remain available until September 30, 2010, for research; 
$2,000,000 for the Internal Revenue Oversight Board; and 
$50,000 for official reception and representation. The 
Committee has provided additional reception and representation 
funds due to the IRS's growing role in international tax 
administration. These funds will be used to host meetings with 
international tax organizations such as the Joint International 
Tax Shelter Information Centre, Inter-American Center for Tax 
Administrators, and others.
    Information Technology [IT] Management and Oversight.--The 
IRS has made significant strides in improving the management 
and oversight of its business systems modernization [BSM] 
program. Unfortunately, the IRS has not adequately addressed 
major systemic problems with its non-BSM portfolio of 
information technology projects as demonstrated by recent 
failures during the past filing season. TIGTA has identified 
problems in several areas of IT management and oversight 
including, but not limited to, such areas as classification of 
investment projects, oversight and governance structure, risk 
management, contingency planning, and contractor performance 
and accountability. Further, it appears that the Department of 
the Treasury and the Office of Management and Budget have not 
exercised proper oversight for the business cases (OMB Circular 
A-11 Exhibit 300) used to justify the funding of the IRS's IT 
projects.
    The Committee remains troubled by the IT management and 
oversight problems at the IRS, as demonstrated by the failures 
with the Electronic Fraud Detection System, and it expects 
better performance to ensure it can support its tax 
administration activities. Accordingly, the Committee directs 
the IRS to review its entire non-BSM IT portfolio (regardless 
of tier classification) and make any changes as necessary to 
ensure that each project has (1) been properly classified for 
investment decision and management purposes, (2) the 
appropriate governance structure in place (such as an executive 
steering committee), (3) a risk management plan, (4) a 
contingency plan in case of breakdowns or failures in scheduled 
deliverables, (5) adequate provisions in the contracts to 
ensure penalties and repayment to the agency if performance is 
not met, (6) adequate contractor staffing and management in 
place to fulfill the contract terms and deliverables, and (7) 
been certified by the head of the relevant IRS business unit 
that the project is deemed necessary for its operations and 
meets its requirements. The Committee also directs the Chief 
Information Officer to certify that this review has been 
completed and submits such certification to the IRS Oversight 
Board, the Department of the Treasury, the Office of Management 
and Budget, the House and Senate Committees on Appropriations, 
the House Ways and Means Committee, and the Senate Finance 
Committee by no later than 90 days after the date of enactment 
of this act. This certification should be accompanied by a 
report on every individual IT project reviewed, a list of 
projects considered to be high risk, and any actions being 
taken to address problems identified by this review. The 
Committee directs the IRS to provide monthly briefings to the 
IRS Oversight Board and TIGTA on the status of its IT portfolio 
and to report immediately on any project that has experienced 
significant cost variances or milestone delivery date 
slippages.
    Modernization Vision and Strategy.--The Committee highly 
commends the IRS for developing a new vision and strategy plan 
for IT modernization. This plan was a joint effort between the 
Modernization and Information Technology Services [MITS] 
organization and the IRS business units to develop a 
comprehensive business strategy for the IRS's IT needs. The 
Committee recommends that the plan be further refined to 
include a finer level of detail, and specifically, to include 
milestones and out-year cost estimates.
    The Committee encourages the IRS to review options for 
modernizing its financial management software system. The IRS 
should consider the most cost-effective management solution, 
including an assessment of how other agencies have resolved 
similar situations and an analysis of potential consolidation 
of financial management systems with other entities within the 
Department, and report to the Committees on Appropriations of 
the Senate and House on the results of the review.

                     BUSINESS SYSTEMS MODERNIZATION

Appropriations, 2007....................................    $212,659,000
Budget estimate, 2008...................................     282,090,000
House allowance.........................................     282,090,000
Committee recommendation................................     282,090,000

                          PROGRAM DESCRIPTION

    This account provides for revamping business practices and 
acquiring new technology. The IRS has undertaken a multi-year, 
multi-billion dollar effort to migrate from its antiquated 
legacy system to bring the IRS tax administration system to a 
level of public and private sector best practices. The IRS is 
using a formal methodology to prioritize, approve, fund, and 
evaluate its portfolio of business systems modernization 
investments. This methodology is designed to enforce a 
documented, repeatable, and measurable process for managing 
investments throughout their life cycle. The process is 
reviewed by the Government Accountability Office on a regular 
basis as part of the submission requirements for expenditure 
plans to the House and Senate Committees on Appropriations. The 
expenditure plan approval process prior to the use of 
appropriated funds continues for fiscal year 2008.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $282,090,000 for Business Systems 
Modernization [BSM] for fiscal year 2008. This amount is the 
same as the budget request and $69,431,000 above the fiscal 
year 2007 enacted level. Under the revised appropriations 
account structure, the BSM account has been modified to include 
funding for IRS staffing associated with direct management of 
the BSM program.
    The Committee continues to believe that BSM is the IRS's 
highest management and administrative priority. As one of the 
Federal Government's largest most visible, and sensitive 
modernizations efforts, managing the risks inherent in BSM will 
require vigilant management attention for several years. To the 
IRS's credit, the program has made steady progress over the 
past 2 years. The Committee is heartened that the budget 
request reflects the criticality of continued progress in 
modernizing IRS's antiquated tax administration and financial 
systems. The Committee is concerned about the impact of any 
delays in releasing components of the BSM deliverables and 
appreciates reqular progress updates.

               HEALTH INSURANCE TAX CREDIT ADMINISTRATION

Appropriations, 2007....................................     $14,856,000
Budget estimate, 2008...................................      15,235,000
House allowance.........................................      15,235,000
Committee recommendation................................      15,235,000

                          PROGRAM DESCRIPTION

    This appropriation provides operating funds to administer 
the advance payment feature of a refundable Trade Adjustment 
Assistance health insurance tax credit program to assist 
dislocated workers with their health insurance premiums. The 
tax credit program was enacted by the Trade Act of 2002 (Public 
Law 107-210) and became effective in August 2003.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides the budget request 
level of $15,235,000 for the Health Insurance Tax Credit 
Administration in fiscal year 2008. This amount is $379,000 
above the fiscal year 2007 enacted level, and the same as the 
budget request.

          ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

    The Committee has included five administrative provisions 
carried in prior appropriations acts and seven new 
administrative provisions. The administrative provisions are as 
follows:
    Section 101 continues a provision allowing the IRS to 
transfer up to 5 percent of any appropriation made available to 
the Agency in fiscal year 2008 to any other IRS account, with 
the exception of the Enforcement account, which is limited to 3 
percent. The IRS is directed to follow the Committee's 
reprogramming procedures outlined earlier in this report.
    Section 102 continues a provision maintaining a training 
program in taxpayers' rights and cross-cultural relations.
    Section 103 continues a provision requiring the IRS to 
institute and enforce policies and procedures, which will 
safeguard the confidentiality of taxpayer information.
    Section 104 continues a provision directing that funds 
shall be available for improved facilities and increased 
staffing to support a 1-800 help line service for taxpayers.
    Section 105 continues and modifies a provision designating 
not less than $177,000,000 for the operating expenses of the 
Taxpayer Advocate Service [TAS] of which not less than 
$115,000,000 shall be made available from the Enforcement. 
Further, this amount does not include the normal overhead 
expenses that IRS provides outside of the TAS account. 
Accordingly, the Committee directs the IRS to continue 
providing overhead support from accounts outside of TAS.
    Section 106 is a new provision designating not less than 
$6,822,000,000 for enhanced tax enforcement to address the 
Federal tax gap and an additional $406,000,000 for the Internal 
Revenue Service for enhanced tax enforcement activities. This 
provision is consistent with section 207(c)(2)(B) of the 
concurrent resolution on the budget for fiscal year 2008 (House 
Report 110-153).
    Section 107 allows the IRS to transfer funds among its 
accounts to implement the new account structure established in 
fiscal year 2007.
    Section 108 is a new provision that requires the IRS to 
develop a tax gap strategic plan that details the approaches it 
will use to achieve a voluntary compliance rate of 85 percent 
in 2009. This goal was established by the administration in its 
fiscal year 2007 budget justifications.
    Section 109 is a new provision that extends an expiring 
authorization of streamlined critical pay authority, a 
personnel flexibility available to the IRS.
    Section 110 is a new provision that extends expiring 
authorization of personnel flexibilities available to the IRS 
for recruitment, retention, relocation incentives, relocation 
expenses, and performance awards for senior executives.
    Section 111 is a new provision that makes a technical 
correction to designate the Office of Personnel Management as 
the agency responsible for fixing the rate of basic pay for 
critical authority positions.
    Section 112 is a new provision that limits the amount of 
funds in this act that may be used to enter into, renew, 
extend, administer, implement, enforce, provide oversight of, 
or make any payment related to any qualified tax collection 
contract.
    Section 113 is a new provision requiring use of funds to 
retrain and reassign to collection activities employees whose 
positions are being eliminated as a result of ramping down IRS 
processing centers, precluding any use of funds to expand the 
number of qualified tax collection contracts while the IRS is 
eliminating processing center employees, mandating a cost 
comparison study and report, and requiring implementation of a 
disability preference program for any additional qualified tax 
collection contracts.
    Section 114 is a new provision restricting the use of funds 
to ramp down or eliminate submission processing activities, 
including reductions in force, until the IRS studies and issues 
a report.

         Administrative Provisions--Department of the Treasury

    The Committee includes 10 administrative provisions carried 
over from prior appropriations acts and one new administrative 
provision. The administrative provisions are as follows:
    Section 113 authorizes certain basic services within the 
Treasury Department in fiscal year 2008, including purchase of 
uniforms; maintenance, repairs, and cleaning; purchase of 
insurance for official motor vehicles operated in foreign 
countries; and contracts with the Department of State for 
health and medical services to employees and their dependents 
serving in foreign countries.
    Section 114 authorizes transfers, up to 2 percent, between 
Departmental Offices, Office of Inspector General, Financial 
Management Service, Alcohol and Tobacco Tax and Trade Bureau, 
Financial Crimes Enforcement Network, and the Bureau of the 
Public Debt appropriations under certain circumstances.
    Section 115 authorizes transfer, up to 2 percent, between 
the Internal Revenue Service and the Treasury Inspector General 
for Tax Administration under certain circumstances.
    Section 116 requires the purchase of law enforcement 
vehicles be consistent with departmental vehicle management 
principles.
    Section 117 prohibits the Department of the Treasury and 
the Bureau of Engraving and Printing from redesigning the $1 
Federal Reserve Note.
    Section 118 authorizes the Secretary of the Treasury to 
transfer funds from Salaries and Expenses, Financial Management 
Service, to the Debt Collection Fund as necessary to cover the 
costs of debt collection. Such amounts shall be reimbursed to 
the Salaries and Expenses account from debt collections 
received in the Debt Collection Fund.
    Section 119 amends section 122(g)(1) of Public Law 105-119 
as amended (5 U.S.C. 3104 note), relating to personnel 
management demonstration project authority by striking ``8 
years'' and inserting ``10 years''.
    Section 120 requires prior approval for the construction 
and operation of a museum by the United States Mint.
    Section 121 prohibits the merger of the United States Mint 
and the Bureau of Engraving and Printing without prior approval 
of the committees of jurisdiction.
    Section 122 is a provision that authorizes the Department's 
intelligence activities.
    Section 123 is a new provision that amends section 3333(a) 
of title 31, United States Code regarding the Check Forgery 
Insurance Fund.

                                TITLE II

    EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE 
                               PRESIDENT

                     Compensation of the President

Appropriations, 2007....................................        $450,000
Budget estimate, 2008..........................         450,000
House allowance.........................................         450,000
Committee recommendation................................         450,000

                          PROGRAM DESCRIPTION

    This account provides for the compensation of the 
President, including an expense allowance as authorized by 3 
U.S.C. 102.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $450,000 for 
Compensation of the President, including an expense allowance 
of $50,000. This is the same as the fiscal year 2007 enacted 
level and the same as the budget estimate. The expense account 
is for official use as authorized by title 3, United States 
Code and is not considered taxable to the President. The bill 
specifies that any unused amount shall revert to the Treasury 
consistent with 31 U.S.C. 1552.

                           White House Office

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $53,616,000
Budget estimate, 2008...................................           (\1\)
House allowance.........................................      53,156,000
Committee recommendation................................      51,656,000

\1\The budget proposes a consolidation of most accounts for the White 
House of $186,920,000, including this account.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Salaries and Expenses account of the White House Office 
provides staff assistance and administrative services for the 
direct support of the President. The office also serves as the 
President's representative before the media. In accordance with 
3 U.S.C. 105, the office also supports and assists the 
activities of the First Lady.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $51,656,000 
for White House Office Salaries and Expenses. The 
recommendation is $1,960,000 less than the fiscal year 2007 
enacted level.
    The Committee has rejected the administration's request to 
include many of the offices under the Executive Office of the 
President under a single, consolidated account. The Committee 
objects to the overall proposal since it would undermine the 
ability of the Congress to exercise adequate oversight 
regarding how these funds are expended.
    The Committee includes $2,000,000 for the Privacy and Civil 
Liberties Oversight Board as a separate account. The Committee 
directs the Executive Office of the President to include 
detailed budget information for the Civil Liberties Oversight 
Board in next year's budget justification.

                 Executive Residence at the White House

                           OPERATING EXPENSES

Appropriations, 2007....................................     $12,398,000
Budget estimate, 2008...................................           (\1\)
House allowance.........................................      12,814,000
Committee recommendation................................      12,814,000

\1\The budget proposes a consolidation of most accounts for the White 
House of $186,920,000 including this account.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    These funds provide for the care, maintenance, repair, 
alteration, refurnishing, improvement, air-conditioning, 
heating, and lighting of the White House and the official and 
ceremonial functions of the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $12,814,000 
for the Executive Residence at the White House. The Committee 
recommendation is $416,000 more than the fiscal year 2007 
enacted level and is equal to certain assumptions in the budget 
estimate. In particular, the administration's request includes 
many of the accounts under the Executive Office of the 
President under a single, consolidated account, including this 
account. The Committee objects to the overall proposal since it 
would undermine the ability of the Congress to exercise 
adequate oversight regarding how these funds are expended. The 
accompanying bill also continues certain restrictions on 
reimbursable expenses for use of the Executive Residence.

                   WHITE HOUSE REPAIR AND RESTORATION

Appropriations, 2007....................................      $1,683,000
Budget estimate, 2008...................................           (\1\)
House allowance.........................................       1,600,000
Committee recommendation................................       1,600,000

\1\The budget proposes a consolidation of most accounts for the White 
House of $186,920,000 including this account.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    This account funds the repair, alteration, and improvement 
of the Executive Residence at the White House. A separate 
account was established in fiscal year 1996 to program and 
track expenditures for the capital improvement projects at the 
Executive Residence at the White House.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,600,000 for 
White House Repair and Restoration, the same amount as assumed 
in the overall budget request and a reduction of $83,000 from 
the fiscal year 2007 enacted level.

                      Council of Economic Advisers

                         SALARIES AND EXPENSES

Appropriations, 2007....................................      $4,032,000
Budget estimate, 2008...................................           (\1\)
House allowance.........................................       4,118,000
Committee recommendation................................       4,118,000

\1\The budget proposes a consolidation of most accounts for the White 
House of $186,920,000 including this account.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Council of Economic Advisers analyzes the national 
economy and its various segments, advises the President on 
economic developments, recommends policies for economic growth 
and stability, appraises economic programs and policies of the 
Federal Government, and assists in the preparation of the 
annual Economic Report of the President to Congress.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,118,000 for 
salaries and expenses of the Council of Economic Advisers. This 
amount is the same as the amount assumed in the overall budget 
request and is $86,000 more than the fiscal year 2007 enacted 
level.

                      Office of Policy Development

                         SALARIES AND EXPENSES

Appropriations, 2007....................................      $3,487,000
Budget estimate, 2008...................................           (\1\)
House allowance.........................................       3,482,000
Committee recommendation................................       3,482,000

\1\The budget proposes a consolidation of most accounts of the White 
House of $186,920,000 including this account.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Office of Policy Development supports the National 
Economic Council and the Domestic Policy Council, in carrying 
out their responsibilities to advise and assist the President 
in the formulation, coordination, and implementation of 
economic and domestic policy. The Office of Policy Development 
also provides support for other domestic policy development and 
implementation activities as directed by the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,482,000 for the Office of 
Policy Development. This is the same as assumed in the budget 
request and $5,000 below the fiscal year 2007 enacted level. In 
particular, the administration's request includes many of the 
accounts under the Executive Office of the President under a 
single, consolidated account, including this account. The 
Committee objects to the overall proposal since it would 
undermine the ability of the Congress to exercise adequate 
oversight regarding how these funds are expended.

                       National Security Council

                         SALARIES AND EXPENSES

Appropriations, 2007....................................      $8,684,000
Budget estimate, 2008...................................           (\1\)
House allowance.........................................       8,640,000
Committee recommendation................................       8,640,000

\1\The budget proposes a consolidation of most accounts of the White 
House of $186,920,000 including this account.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The National Security Council advises the President in 
integrating domestic, foreign, and military policies relating 
to the national security.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $8,640,000 for 
the salaries and expenses of the National Security Council 
[NSC]. This amount is the same as assumed in the budget request 
and $44,000 less than the fiscal year 2007 enacted level.

              Privacy and Civil Liberties Oversight Board

                         SALARIES AND EXPENSES

Appropriations, 2007....................................           (\1\)
Budget estimate, 2008...................................           (\2\)
House allowance.........................................................
Committee recommendation................................      $2,000,000

\1\$1,500,000 was included in the White House office appropriation.
\2\$1,500,000 was included in the White House office budget request.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    Recommended by the July 22, 2004, report of the National 
Commission on Terrorist Attacks Upon the United States (the 9/
11 Commission), the Privacy and Civil Liberties Oversight Board 
was established by the Intelligence Reform and Terrorism 
Prevention Act of 2004. It consists of five members appointed 
by and serving at the pleasure of the President. The Board 
advises the President and other senior executive branch 
officials to ensure that concerns with respect to privacy and 
civil liberties are appropriately considered in the 
implementation of all laws, regulations, and executive branch 
policies related to efforts to protect the Nation against 
terrorism. This includes advising on whether adequate 
guidelines, supervision, and oversight exist to protect these 
important legal rights of all Americans.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,000,000 for 
the Board in a separate appropriation account. Funding for the 
Board has previously been carried in the White House Office, 
Salaries and Expenses appropriation account. The fiscal year 
2007 amount was $1,500,000 and the fiscal year 2008 budget 
request was also $1,500,000. The Committee believes that the 
work of this important Board warrants a separate appropriation 
account. The Committee expects the Board's annual report, as 
required under Public Law 108-458, to specifically detail how 
the additional funds provided have benefited the work and 
responsibilities of the Board.

                        Office of Administration

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $88,643,000
Budget estimate, 2008...................................           (\1\)
House allowance.........................................      92,829,000
Committee recommendation................................      92,829,000

\1\The budget proposes a consolidation of most accounts of the White 
House of $186,920,000 including this account.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Office of Administration's mission is to provide high-
quality, cost-effective administrative services to the 
Executive Office of the President. These services, defined by 
Executive Order 12028 of 1977, include financial, personnel, 
library and records services, information management systems 
support, and general office services.

                        COMMITTEE RECOMMENDATION

    The Committee has provided $92,829,000 to the Office of 
Administration for fiscal year 2008, an increase of $4,186,000 
over the fiscal year 2007 enacted level and $10,281,000 below 
the amount assumed in the budget request.
    The Committee has not included space rental costs for 
Office of Management and Budget [OMB] and Office of National 
Drug Control Policy [ONDCP] in this account. Funding for these 
costs is included within the accounts of the respective 
offices. That accounts for the reduction from the budget 
request.

                    Office of Management and Budget

                         salaries and expenses

Appropriations, 2007...........................     $76,714,000
Budget estimate, 2008...................................      70,866,000
House allowance.........................................      78,394,000
Committee recommendation................................      78,394,000

                          PROGRAM DESCRIPTION

    The Office of Management and Budget [OMB] assists the 
President in the discharge of his budgetary, management, and 
other executive responsibilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $78,394,000 
for the Office of Management and Budget which is $1,680,000 
more than the fiscal year 2007 enacted level and $7,528,000 
more than the budget request.
    The Committee has included space rental costs in this 
account, rather than in the Office of Administration as assumed 
in the budget request, which accounts for the increase over the 
budget.
    The Committee directs OMB's attention to the reporting 
directive contained in the OPM section of the report.
    The Committee directs the Director of the Office of 
Management and Budget to report to Congress no later than March 
1, 2009, regarding the extent to which executive departments 
and agencies that administer directed funding allocate the 
designated amounts to intended recipients at a level less than 
the amount specified in any enacted bill or accompanying report 
describing such directed funding.

                 Office of National Drug Control Policy

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $26,766,000
Budget estimate, 2008...................................      23,833,000
House allowance.........................................      26,636,000
Committee recommendation................................      25,152,000

                          PROGRAM DESCRIPTION

    The Office of National Drug Control Policy [ONDCP], 
established by the Anti-Drug Abuse Act of 1988, and 
reauthorized by Public Law 109-469, is charged with developing 
policies, objectives and priorities for the National Drug 
Control Program. In addition, ONDCP administers the Counterdrug 
Technology Assessment Center, the High Intensity Drug 
Trafficking Areas program, the National Youth Anti-Drug Media 
Campaign, the Drug-Free Communities Program and several other 
related initiatives.
    This account provides funding for personnel compensation, 
travel, and other basic operations of the Office, and for 
general policy research to support the formulation of the 
National Drug Control Strategy.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $25,152,000 
for ONDCP's salaries and expenses. This amount is $1,614,000 
below the fiscal year 2007 enacted level and $1,269,000 above 
the budget request.
    An amount of $2,753,000 is provided under this heading for 
rental payments to the General Services Administration [GSA] 
instead of providing these funds under the heading ``Office of 
Administration''. Within this amount the Committee provides the 
following funding levels:

------------------------------------------------------------------------
                                              Amount           FTEs
------------------------------------------------------------------------
Office of the Director..................      $4,150,000              18
Office of the Deputy Director...........  ..............           (\1\)
Office of Management and Administration.       3,072,000              15
Office of Legal Counsel.................       1,100,000               6
Office of Public Affairs................       2,130,000               7
Office of Legislative Affairs...........       1,015,000               7
Major Cities............................  ..............  ..............
Counterdrug Technology Assessment Center  ..............  ..............
Office of Planning and Budget...........       3,092,000              17
Office of Demand Reduction..............       1,780,000              11
Office of National Youth Anti-Drug Media         825,000               6
 Campaign...............................
Office of State, Local & Tribal Affairs.       2,125,000              14
Office of Supply Reduction..............       2,860,000              17
Office of Intelligence..................           (\2\)  ..............
Policy Research.........................         250,000  ..............
------------------------------------------------------------------------
\1\Vacant.
\2\Not Requested.

    Should a Deputy Director be established, ONDCP shall notify 
the Committee immediately in order to address funding issues. 
Funding is denied for the Major Cities program which has 
demonstrated no discernable results. The director of the Drug-
Free Communities Support Program, who has had the dual mission 
of overseeing the Major Cities program, is better served, the 
Committee believes, by focusing on the main mission of helping 
communities prevent drug use.
    Funding has never been specifically requested for the Major 
Cities program, which is unauthorized, but which has been 
staffed by other ONDCP personnel who have permanent jobs in 
other components and funded via the salaries and expenses 
account. The Committee is aware of some objections raised by 
the authorizing committee and believes that ONDCP should seek 
authorization prior to allocating staffing and funding 
resources for this unauthorized program.
    Policy Research and Evaluation.--The Committee notes that 
funding for policy research and evaluation is intended to 
support short-term, policy-oriented secondary data and drug 
program analyses such as the economic costs to society of drug 
abuse, price and purity trends, and the estimated availability 
of illicit drugs. These studies are viewed as an important 
contribution to the Nation's understanding of drug use and its 
consequences. The use of policy research funds was never 
intended by the Committee to be used for primary data 
collection. The Committee requires that funding for policy 
research be used as it was originally intended and requests 
that ONDCP report to the Committee on its policy research plans 
for using these funds within 30 days after the enactment of 
this act.
    The Committee is aware of the extensive travel conducted by 
ONDCP officials in recent years and questions the need for such 
extensive travel. The Committee provides a level of $600,000 
for travel, as follows: $150,000 for the Office of Supply 
Reduction; $100,000 for the Office of Demand Reduction; 
$150,000 to the Office of State, Local and Tribal Affairs; 
$50,000 for the Office of Performance and Budget; and $150,000 
for all other ONDCP offices and components.
    The Committee does not agree with ONDCP's proposal to 
reorganize 3 of the agency's 12 components, therefore the 
Committee has included a provision to continue the prohibition 
against the reorganization.
    The principal purpose of the White House Office of National 
Drug Control Policy [ONDCP] is to establish priorities, 
objectives, and policies for the Nation's drug control program. 
The Committee is concerned that the overall organization of 
ONDCP is ineffective and must be improved. In fact, 7 years 
ago, an independent review found weaknesses in ONDCP management 
and organization, and unfortunately these problems persist 
today. The Committee believes an investigation into funding 
allocations and expenditures, as well as the use of resources 
is warranted. The Committee believes an independent review of 
the overall organization and management of grants and funding 
systems would be beneficial to ONDCP and the Congress. Such an 
evaluation may provide insight into changes and improvements 
that could make ONDCP more effective in the future. Therefore, 
the Committee has allocated funding for a study by the National 
Academy of Public Administration [NAPA] to conduct a review of 
organization and management. In addition, the Committee also 
requests that the Government Accountability Office [GAO] review 
the grant management systems, and other funding systems--
emphasizing the criteria and methodology used to award and 
distribute funds. The Committee is aware and supportive of 
GAO's ongoing review of the Drug-Free Communities program, and 
recommends that GAO also review the Counterdrug Technology 
Assessment Center and High Intensity Drug Trafficking Areas 
Program, among others. The Committee expects NAPA and GAO to 
work together, sharing progress and information during the 
course of their reviews, which should begin within 60 days 
after the enactment of this act.
    The Committee directs the Director to provide to the 
Committees on Appropriations quarterly reports on travel 
expenditures, summarized by office, program, and individual, 
including dates and purpose of travel. The Committee further 
directs the Director to provide to the Committees on 
Appropriations quarterly reports on current staffing levels and 
plans for future hirings. The staffing report shall include 
office, position title, salary, and job classifications of all 
persons employed by ONDCP, including contractors.
    Meth use.--House Report 109-703, the conference report to 
accompany H.R. 3058, directed ONDCP to increase its focus, 
resources and activities targeted at combating meth abuse. The 
Director shall report to the Committee within 30 days after 
enactment of this act on ONDCP's accomplishments pursuant to 
that directive. As part of that report, the Director shall also 
report on additional options for how ONDCP, in conjunction with 
other Federal agencies if appropriate, can reduce meth use, 
particularly in rural communities. The Committee encourages the 
consideration of options that result in the expansion of 
methamphetamine treatment for pregnant and parenting women 
offenders.

                COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER

Appropriations, 2007....................................     $20,000,000
Budget estimate, 2008...................................       5,000,000
House allowance.........................................      10,000,000
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    The Counterdrug Technology Assessment Center [CTAC] was 
established by the Counter-Narcotics Technology Act of 1990 
(Public Law 101-510) and reauthorized in 1998 (Public Law 105-
277) to serve as the central counterdrug technology research 
and development organization for the United States Government. 
CTAC encompasses two separate functions: (1) the Research and 
Development program [R&D], which supports improvements to 
counterdrug capabilities that transcend the need of any single 
Federal agency; and (2) the Technology Transfer Program [TTP], 
which provides state-of-the-art, affordable, easily integrated 
and maintainable tools to enhance the capabilities of State and 
local law enforcement agencies for counterdrug missions.

                        COMMITTEE RECOMMENDATION

    Funding for this once valuable program, has deteriorated 
steadily from a level of $46,538,000 in fiscal year 2003 to a 
requested level of only $5,000,000 in fiscal year 2008. Funding 
from previous years has remained unexpended despite 
congressional direction to reinstate CTAC programs as 
previously existed, and congressional intent with regard to 
this program has been ignored. The Committee is highly 
disappointed in the director of this program and is troubled by 
his ideas for research and development that appear to have 
little or no value, such as studying sewage, among others. 
Moreover, the CTAC Director serves a dual mission as a special 
assistant to the director, diluting his ability to focus on 
managing and spending CTAC resources. The CTAC program has 
adequate unexpended balances from previous years to continue 
funding for the program in fiscal year 2008, therefore, the 
Committee provides no funding for the CTAC account.

                  Funds Appropriated to the President

                     FEDERAL DRUG CONTROL PROGRAMS

                 HIGH INTENSITY DRUG TRAFFICKING AREAS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2007....................................    $224,730,000
Budget estimate, 2008...................................     220,000,000
House allowance.........................................     226,000,000
Committee recommendation................................     235,000,000

                          PROGRAM DESCRIPTION

    The High Intensity Drug Trafficking Areas [HIDTA] program 
was established by the Anti-Drug Abuse Act of 1988, as amended, 
and the Office of National Drug Control Policy's 
reauthorization (Public Law 109-469) to provide assistance to 
Federal, State and local law enforcement entities operating in 
those areas most adversely affected by drug trafficking.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $235,000,000 
for the HIDTA program, an increase of $10,270,000 over the 
fiscal year 2007 level and $15,000,000 more than the budget 
request. The Committee directs that funding shall be provided 
for the existing HIDTAs at no less than the fiscal year 2007 
initial allocation level, unless the Director submits to the 
House and Senate Committees on Appropriations, and the 
Committees approve, a request for reprogramming of the funds 
based on clearly articulated priorities for the HIDTA program, 
as well as published ONDCP performance measures of 
effectiveness. Furthermore, the Committee directs the Director 
to take appropriate steps to ensure that the HIDTA funds are 
transferred to the appropriate drug control agencies 
expeditiously.
    In allocating HIDTA funds, the Committee expects the 
Director of ONDCP to ensure that the entities receiving these 
limited resources make use of them strictly for implementing 
the strategy for each HIDTA, taking into consideration local 
conditions and resource requirements. In this regard, 
methamphetamine is a primary illicit drug threat across the 
country. Its widespread use and resulting addiction, combined 
with the overwhelming availability of high purity, low cost 
methamphetamine is cause for serious concern. Cocaine and 
heroin also represent significant threats and Ecstasy is an 
increasing danger. Marijuana is readily available and widely 
abused across the United States. The prevalence of Canadian-
produced marijuana, commonly known as BC Bud, and potent 
marijuana from the Appalachian States are two examples that 
demonstrate the need for and value of marijuana eradication 
programs.
    The HIDTA funds should not be used to supplant existing 
support for ongoing Federal, State, or local drug control 
operations normally funded out of the operating budgets of each 
agency. ONDCP is directed to hold back all HIDTA funds from a 
State until such time as a State or locality has met its 
financial obligation.
    The Committee is disappointed by ONDCP's delay in the award 
of HIDTA funding, and includes provisions in the bill to 
address this issue.

                  OTHER FEDERAL DRUG CONTROL PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2007....................................    $192,951,000
Budget estimate, 2008...................................     224,485,000
House allowance.........................................     197,800,000
Committee recommendation................................     204,735,000

                          PROGRAM DESCRIPTION

    The Anti-Drug Abuse Act of 1988 (Public Law 100-690), as 
amended, and the Office of National Drug Control Policy 
Reauthorization Act (Public Law 109-469) established this 
account to be administered by the Director of the Office of 
National Drug Control Policy. The funds appropriated to the 
program support high-priority drug control programs and may be 
transferred to drug control agencies.
    This account includes the following programs: National 
Youth Anti-Drug Media Campaign, Drug-Free Communities Support 
Program, National Community Anti-Drug Coalition Institute, 
National Drug Court Institute, U.S. Anti-Doping Agency, World 
Anti-Doping Agency [WADA] membership dues, National Alliance 
for Model State Drug Laws, and Performance Measures 
Development.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $204,735,000 
for Other Federal Drug Control Programs, which is $11,784,000 
more than the fiscal year 2007 enacted level and $19,750,000 
less than the budget request. Within this amount, the Committee 
provides the following funding levels:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
National Youth Anti-Drug Media Campaign.................    $100,000,000
Drug-Free Communities Support Program...................      90,000,000
National Drug Court Institute...........................       1,000,000
U.S. Anti-Doping Agency.................................      10,285,000
World Anti-Doping Agency [WADA].........................       1,700,000
National Alliance for Model State Drug Laws.............       1,500,000
Performance Measures Development........................         250,000
------------------------------------------------------------------------

    National Youth Anti-Drug Media Campaign.--The Committee has 
provided consistent monetary support for the National Youth 
Anti-Drug Media Campaign since it was initially funded by 
Congress in fiscal year 1998. The Committee continues to be 
concerned about the direction and efficacy of the Media 
Campaign as it is currently structured, and notes that 
independent reports have concluded that the Media Campaign has 
not had a demonstrable nationwide effect on reducing drug use 
among the Campaign's target population. Furthermore, the GAO 
confirms that the Media Campaign has not been effective in 
reducing youth drug use. The Committee is concerned that meth 
is having a disproportional impact on our rural communities, 
rendering the addiction an epidemic in the lives of so many 
Americans from the Nation's farmlands, reservations, and small 
towns. Most of these communities, because they are located 
outside of urban areas, lack the comprehensive support services 
needed to effectively address the addiction and its devastating 
grip on so many families. The Committee provides $100,000,000 
for the Media Campaign, of which at least $10,000,000 shall be 
for meth prevention ads. The Committee directs that no more 
than 10 percent of the funding provided for the Media Campaign 
be used for administrative costs.
    Drug-Free Communities Support Program.--ONDCP has directed 
the Drug-Free Communities Support Program [DFCSP] in 
partnership with the Office of Juvenile Justice and Delinquency 
Prevention since it was created by the Drug-Free Communities 
Act of 1997 (Public Law 105-20). DFCSP provides dollar for 
dollar matching grants of up to $125,000 to local coalitions 
that mobilize their communities to prevent youth alcohol, 
tobacco, illicit drug, and inhalant abuse. Such grants support 
coalitions of youth; parents; media; law enforcement; school 
officials; faith-based organizations; fraternal organizations; 
State, local, and tribal government agencies; healthcare 
professionals; and other community representatives. The DFCSP 
enables these coalitions to strengthen their coordination and 
prevention efforts, encourage citizen participation in 
substance abuse reduction efforts, and disseminate information 
about effective programs. The Committee provides $90,000,000 
for the continuation of the DFCSP.
    The Committee has also included a provision in the bill 
directing ONDCP to provide $2,000,000 of DFCSP funds for 
training and related purposes as authorized by section 4 of 
Public Law 107-82, as amended by Public Law 109-469.
    United States Anti-Doping Agency.--The United States Anti-
Doping Agency [USADA] is the independent anti-doping agency for 
Olympic sports in the United States, and is responsible for 
managing the testing and adjudication process for U.S. Olympic, 
Pan Am and Paralympic athletes. As a nonprofit corporation 
under the leadership of an independent Board of Directors, 
USADA has the authority to set forth guiding principles in 
anti-doping policy and to enforce any doping violations. In 
addition to managing collection and testing procedures, USADA 
is also responsible for enhancing research efforts and 
promoting educational programs to inform athletes of the rules 
governing the use of performance enhancing substances, the 
ethics of doping and its harmful health effects.
    The Committee provides $10,285,000 for USADA, which is 
$1,870,000 more than the fiscal year 2007 level and $8,000,000 
more than the budget request.
    World Anti-Doping Agency.--ONDCP is a full participant in 
the World Anti-Doping Agency [WADA], which promotes and 
coordinates international activities against doping in all 
forms of sports. The Committee provides $1,700,000 for 
membership dues to the WADA, consistent with the commitment the 
United States has entered for support of WADA. In providing 
these funds, the Committee directs ONDCP to use its voice and 
vote as the United States' representative in this world body to 
ensure that all countries' athletes are subject to fair and 
equal standards and treatment.
    National Drug Court Institute.--The National Drug Court 
Institute facilitates the growth of the drug court movement by 
promoting and disseminating education, research, and 
scholarship concerning drug court programs and providing a 
comprehensive drug court training series for practitioners. 
Drug courts provide an effective means to fight drug-related 
crime through the cooperative efforts of State and local law 
enforcement, the judicial system, and the public health 
treatment network. The Committee provides $1,000,000 for the 
National Drug Court Institute.
    National Alliance For Model State Drug Laws.--The National 
Alliance for Model State Drug Laws [NAMSDL] is a national 
organization that drafts, researches, and analyzes model drug 
and alcohol laws and related State statutes, provides access to 
a national network of drug and alcohol experts, and facilitates 
working relationships among State and community leaders and 
drug and alcohol professionals. In doing so, NAMSDL encourages 
States to adopt and implement laws, policies, and regulations 
to reduce drug trafficking, drug use, and their related 
consequences. The Committee provides $1,500,000 to NAMSDL and 
directs ONDCP to provide the entire amount directly to NAMSDL 
within 30 days after enactment of this act.
    NAMSDL can play a key role in coordinating State efforts to 
ensure that methamphetamine manufacturers are not able to 
circumvent limits on the sale of methamphetamine precursor 
chemicals by traveling across State lines when buying these 
chemicals and taking advantage of different State recordkeeping 
systems. Accordingly, within 120 days after enactment of this 
act, the Committee directs NAMSDL, with assistance from ONDCP 
and the Department of Justice and after appropriate 
consultation with State law enforcement and regulatory 
organizations and with retail sellers, to issue a report to the 
Committee on Appropriations describing the model architecture 
and operation of statewide methamphetamine precursor electronic 
logbook systems.
    Performance Measures.--Performance Measures funding is used 
to conduct evaluation research for assessing the effectiveness 
of the National Drug Control Strategy. Projects undertaken with 
these resources are to entail efforts to encourage and work 
with selected programs to develop and improve needed data 
sources. As noted in Senate Report 109-109, the Committee is 
concerned that initiatives proposed for funding under PMD are 
more appropriately funded as part of CTAC's R&D Program or 
ONDCP Policy Research. The Committee provides $250,000 for this 
program and directs ONDCP to outline and submit to the 
Committee a detailed plan for projects that assess the 
effectiveness of the strategy in achieving its goals and 
objectives, and develop and improve needed data sources, 
including specific funding levels, no later than 120 days after 
enactment of this act.

                          Unanticipated Needs

Appropriations, 2007....................................        $990,000
Budget estimate, 2008...................................       1,000,000
House allowance.........................................       1,000,000
Committee recommendation................................       1,000,000

                          PROGRAM DESCRIPTION

    These funds enable the President to meet unanticipated 
exigencies in support of the national interest, security, or 
defense.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,000,000 which is $10,000 more 
than appropriated in fiscal year 2007 and the same as the 
budget request.

                  Special Assistance to the President

                         SALARIES AND EXPENSES

Appropriations, 2007....................................      $4,432,000
Budget estimate, 2008...................................       4,432,000
House allowance.........................................       4,432,000
Committee recommendation................................       4,432,000

                          PROGRAM DESCRIPTION

    This appropriation provides for staff and expenses to 
enable the Vice President to provide assistance to the 
President in connection with the performance of executive 
duties and responsibilities. The Vice President also has a 
staff funded by the Senate to assist him in the performance of 
his legislative duties. These funds also support the official 
activities of the spouse of the Vice President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,432,000 for 
special assistance to the President. This amount is the same as 
the budget request and the same as the fiscal year 2007 enacted 
level.

                Official Residence of the Vice President

                           OPERATING EXPENSES

Appropriations, 2007....................................        $322,000
Budget estimate, 2008...................................         320,000
House allowance.........................................         320,000
Committee recommendation................................         320,000

                          PROGRAM DESCRIPTION

    This account supports the care and operation of the Vice 
President's residence on the grounds of the Naval Observatory. 
These funds specifically support equipment, furnishings, dining 
facilities, and services required to perform and discharge the 
Vice President's official duties, functions and obligations.
    Funds to renovate the residence are provided through the 
Department of the Navy budget. The Committee has had a 
longstanding interest in the condition of the residence and 
expects to be kept fully apprised by the Vice President's 
office of any and all renovations and alterations made to the 
residence by the Navy.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $320,000 for 
the official residence of the Vice President. This amount is 
the same as the budget request and $2,000 less than the fiscal 
year 2007 enacted level.

Administrative Provisions--Executive Office of the President and Funds 
                     Appropriated to the President

    Section 201. The Committee continues a provision that 
provides flexibility in the use of funds in accounts under the 
Executive Office of the President.
    Section 202. The Committee includes a new provision 
requiring a financial plan by the Director of the ONDCP prior 
to the obligation of funds in fiscal year 2008.
    Section 203. The Committee includes a new provision 
allowing for the transfer of up to 3 percent among programs 
within ONDCP.
    Section 204. The Committee includes a new provision 
establishing new reprogramming requirements for ONDCP.
    Section 205. The Committee includes a new provision 
requiring ONDCP to comport with budget estimates except as 
otherwise provided in this act, or through an approved 
reprogramming.

                               TITLE III

                             THE JUDICIARY

                          PROGRAM DESCRIPTION

    Established under Article III of the Constitution, the 
judicial branch of Government is a separate but equal branch. 
The Federal Judiciary consists of the Supreme Court, United 
States Courts of Appeals, District Courts, Bankruptcy Courts, 
Court of International Trade, Court of Federal Claims and 
several other entities and programs. The organization of the 
judiciary, the district and circuit boundaries, the places of 
holding court, and the number of Federal judges are legislated 
by the Congress and signed into law by the President.
    The Committee's recommended funding levels support the 
Federal judiciary's role of providing equal justice under the 
law and include sufficient funds to support this critical 
mission. The recommended funding level includes the salaries of 
judges and support staff and the operation and security of our 
Nation's courts.
    The judicial branch is reminded that it, too, is subject to 
the same funding constraints facing the executive and 
legislative branches and continues to urge the Federal 
judiciary to devote its resources primarily to the retention of 
staff. Further, the judiciary is encouraged to contain 
controllable costs such as travel, construction, and other non-
essential expenses.
    In addition, the judiciary is reminded that section 705 of 
the accompanying act applies to the judicial as well as the 
executive branch.

                   Supreme Court of the United States

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $62,576,000
Budget estimate, 2008...................................      66,526,000
House allowance.........................................      66,526,000
Committee recommendation................................      66,522,000

                          PROGRAM DESCRIPTION

    The United States Supreme Court consists of nine justices 
appointed under Article III of the Constitution of the United 
States, one of whom is appointed as Chief Justice of the United 
States. The Supreme Court acts as the final arbiter in the 
Federal court system.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $66,522,000 
for the Justices, their supporting personnel, and the costs of 
operating the Supreme Court, excluding the care of the building 
and grounds. The recommendation is $3,946,000 above the fiscal 
year 2007 funding level and reflects the judiciary's re-
estimate of fiscal year 2008 requirements. The Committee has 
provided inflationary and other standard adjustments and 
supports five additional staff to support information 
technology [IT] operations of the Court.

                    CARE OF THE BUILDING AND GROUNDS

Appropriations, 2007....................................     $11,427,000
Budget estimate, 2008...................................      12,201,000
House allowance.........................................      12,201,000
Committee recommendation................................      12,201,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $12,201,000 
for personnel and other services related to the Supreme Court 
building and grounds, which is supervised by the Architect of 
the Capitol. The recommendation is $774,000 above the fiscal 
year 2007 funding level and identical to the budget request. 
The Committee has provided the additional two permanent staff 
to address workload increases along with the four temporary 
staff in support of various construction projects. The 
Committee directs the Court to report to the Committee on its 
construction and modernization plans and to update the 
Committee as the Court becomes aware of any changes in schedule 
or budgetary needs.

         United States Court of Appeals for the Federal Circuit

                         salaries and expenses

Appropriations, 2007....................................     $25,311,000
Budget estimate, 2008...................................      28,538,000
House allowance.........................................      27,976,000
Committee recommendation................................      27,438,000

                          PROGRAM DESCRIPTION

    The United States Court of Appeals for the Federal Circuit 
was established under Article III of the Constitution on 
October 1, 1982. The court was formed by the merger of the 
United States Court of Customs and Patent Appeals and the 
appellate division of the United States Court of Claims. The 
court consists of twelve judges who are appointed by the 
President, with the advice and consent of the Senate. Judges 
are appointed to the court under Article III of the 
Constitution of the United States.
    The Federal Circuit has nationwide jurisdiction in a 
variety of subject matter, including international trade, 
government contracts, patents, certain claims for money from 
the United States Government, Federal personnel, and veterans' 
benefits. Appeals to the court come from all Federal district 
courts, the United States Court of Federal Claims, the United 
States Court of International Trade, and the United States 
Court of Veterans Appeals. The court also takes appeals of 
certain administrative agencies' decisions, including the Merit 
Systems Protection Board, the Board of Contract Appeals, the 
Board of Patent Appeals and Interferences, and the Trademark 
Trial and Appeals Board. Decisions of the United States 
International Trade Commission, the Office of Compliance of the 
United States Congress and the Government Accountability Office 
Personnel Appeals Board are also reviewable by the court.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $27,438,000. 
The recommendation is $2,127,000 above the fiscal year 2007 
funding level, $1,100,000 below the budget request, and 
$1,004,000 below the judiciary's re-estimate of fiscal year 
2008 requirements. Of the amount provided, the Committee has 
partially funded the highest priority requested increase, 
providing three FTE.
    The Committee understands that the case management/
electronic case filing [CM/ECF] system being developed by the 
judiciary will save time and create efficiencies that are being 
realized at every step of the judicial process. Data and 
documents added to the trial court CM/ECF system will be 
available throughout the life of the case. Linked national 
systems also allow for easy access to documents in all courts. 
All of the CM/ECF systems are supported by the national support 
structure that maintains the application, provides training and 
support, and provides replication of all data--and nearly 
uninterrupted access to court documents--in case of 
emergencies. The CM/ECF system, designed to link the judiciary 
at every level, is being implemented with all 12 regional 
courts of appeals. Feedback from the courts has been positive, 
particularly in the areas of efficiencies gained and improved 
training time. All courts of appeals, including the Federal 
Circuit, were invited to participate in the development 
process, but the Federal Circuit chose instead to develop its 
own system. Due to budgetary constraints, the Committee is 
unable to fund duplicative systems that are not able to take 
advantage of savings due to economies of scale.

                   U.S. Court of International Trade

                         salaries and expenses

Appropriations, 2007....................................     $15,825,000
Budget estimate, 2008...................................      16,727,000
House allowance.........................................      16,544,000
Committee recommendation................................      16,632,000

                          PROGRAM DESCRIPTION

    The United States Court of International Trade, located in 
New York City, consists of nine Article III judges. The court 
has exclusive nationwide jurisdiction over civil actions 
brought against the United States, its agencies and officers, 
and certain civil actions brought by the United States, arising 
out of import transactions and the administration and 
enforcement of the Federal customs and international trade 
laws.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $16,632,000. 
The recommendation is $807,000 above the fiscal year 2007 
funding level and $95,000 below the budget request.

    Courts of Appeals, District Courts, and Other Judicial Services

                         SALARIES AND EXPENSES

Appropriations, 2007....................................  $4,476,569,000
Budget estimate, 2008...................................   4,854,455,000
House allowance.........................................   4,660,590,000
Committee recommendation................................   4,709,991,000

                          PROGRAM DESCRIPTION

    Salaries and Expenses is one of four accounts that provide 
total funding for the Courts of Appeals, District Courts and 
Other Judicial Services. In addition to funding the salaries of 
judges and support staff, this account also funds the operating 
costs of appellate, district and bankruptcy courts, and 
probation and pretrial services offices.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of 
$4,709,991,000. The recommendation is $233,422,000 above the 
fiscal year 2007 funding level and $144,464,000 below the 
budget request.
    The Committee has adequately funded this account to enable 
the courts to meet their workload demands. The Committee 
believes retention of personnel should remain a top priority 
and has funded the requested judges and staffing increases and 
looks forward to receiving regularly updated reports about 
staffing at the Southwest border and other critical areas for 
which the judiciary received funding for in fiscal year 2007 
and fiscal year 2008. The Committee has provided $1,100,000 of 
the $9,100,000 increase requested for information technology 
new programs and improvements.
    The Committee acknowledges the cost containment measures 
undertaken by the judiciary and strongly supports the 
continuation of those efforts. The Committee urges the Judicial 
Conference to weigh carefully its need for more space to 
adjudicate cases against the Federal judiciary's rent needs. 
The Committee is pleased that efforts to deal with rent issues 
by the judiciary and the General Services Administration have 
improved. The Committee encourages the Judicial Conference to 
ensure adequate checks are in place so that future construction 
requests and projects are subjected to the highest standards of 
cost-efficiency. The Committee directs the Administrative 
Office of the Courts to report to the Committee no later than 
120 days after the date of enactment of this act on steps that 
have been and are being taken to encourage more efficient use 
of space by district and circuit courts. Strategic planning has 
become a valuable tool to the executive branch agencies as they 
plan for the future.
    Carryover Funds.--Due to unique circumstances, the 
judiciary has reported significant carryover funds in recent 
fiscal years. The Committee is concerned that the 
administrative office has not first used these carryover funds 
to offset projected decreases in fee collections and other 
projected needs and has, instead, used this funding to augment 
existing programs. This has resulted in an increase in the 
judiciary's uncontrollable costs, unnecessary funding requests 
and greater baseline needs. As such, the Administrative Office 
is directed to ensure that current and projected funding needs 
are met first with carryover funds before enhancing any 
program. The Committee directs the Administrative Office to 
separately include in future financial plans, for approval by 
the House and Senate Committees on Appropriations, all sources 
of carryover funds and their desired application.

                 VACCINE INJURY COMPENSATION TRUST FUND

Appropriations, 2007....................................      $3,952,000
Budget estimate, 2008...................................       4,099,000
House allowance.........................................       4,099,000
Committee recommendation................................       4,099,000

                          PROGRAM DESCRIPTION

    Enacted by the National Childhood Vaccine Injury Act of 
1986 (Public Law 99-660), the Vaccine Injury Compensation 
Program is a Federal no-fault program designed to resolve a 
perceived crisis in vaccine tort liability claims that 
threatened the continued availability of childhood vaccines 
nationwide. The statute's primary intention is the creation of 
a more efficient adjudicatory mechanism that ensures a no-fault 
compensation result for those allegedly injured or killed by 
certain covered vaccines. This program protects the 
availability of vaccines in the United States by diverting a 
substantial number of claims from the tort arena.
    Not only did this act create a special fund to pay 
judgments awarded under the act, but it also created the Office 
of Special Masters [OSM] within the United States Court of 
Federal Claims to hear vaccine injury cases. The act stipulates 
that up to eight special masters may be appointed for this 
purpose. The special masters expenditures are reimbursed to the 
judiciary for vaccine injury cases from a special fund set up 
under the Vaccine Act.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,099,000. 
The recommendation is $147,000 above the fiscal year 2007 
funding level and consistent with the budget request.

                           Defender Services

Appropriations, 2007....................................    $776,283,000
Budget estimate, 2008...................................     859,834,000
House allowance.........................................     830,499,000
Committee recommendation................................     840,601,000

                          PROGRAM DESCRIPTION

    The Defender Services program ensures the right to counsel 
guaranteed by the Sixth Amendment, the Criminal Justice Act (18 
U.S.C. 3006A(e)) and other congressional mandates for those who 
cannot afford to retain counsel and other necessary defense 
services. The Criminal Justice Act provides that courts appoint 
counsel from Federal public and community defender 
organizations or from a panel of private attorneys established 
by the court. The Defender Services program helps to maintain 
public confidence in the Nation's commitment to equal justice 
under the law and ensures the successful operation of the 
constitutionally based adversary system of justice by which 
Federal criminal laws and federally guaranteed rights are 
enforced.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $840,601,000. 
The recommendation is $64,318,000 above the fiscal year 2007 
funding level and $19,233,000 below the budget request.
    Panel Attorney Pay Rates.--The Committee has increased the 
non-capital panel attorney rate per hour from $94 to $96 in 
fiscal year 2008. The Committee approves of the judiciary's 
presentation of this cost-of-living adjustment request as a 
program increase, instead of an adjustment to base.

                    Fees of Jurors and Commissioners

Appropriations, 2007....................................     $60,945,000
Budget estimate, 2008...................................      62,350,000
House allowance.........................................      62,350,000
Committee recommendation................................      63,081,000

                          PROGRAM DESCRIPTION

    This account provides for the statutory fees and allowances 
of grand and petit jurors and for the compensation of jury and 
land commissioners. Budgetary requirements depend primarily 
upon the volume and the length of jury trials demanded by 
parties to both civil and criminal actions and the number of 
grand juries being convened by the courts at the request of the 
United States Attorneys.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $63,081,000. 
The recommendation is $2,136,000 above the fiscal year 2007 
funding level and reflects the judiciary's re-estimate of 
fiscal year 2008 requirements.

                             Court Security

                     (INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2007....................................    $378,663,000
Budget estimate, 2008...................................     421,789,000
House allowance.........................................     396,476,000
Committee recommendation................................     412,720,000

                          PROGRAM DESCRIPTION

    The Court Security appropriation was established in 1983 
and funds the necessary expenses incident to the provision of 
protective guard services, and the procurement, installation, 
and maintenance of security systems and equipment for United 
States courthouses and other facilities housing Federal court 
operations, including building access control, inspection of 
mail and packages, directed security patrols, perimeter 
security provided by the Federal Protective Service, and other 
similar activities as authorized by section 1010 of the 
Judicial Improvement and Access to Justice Act (Public Law 100-
702).

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $412,720,000. 
The recommendation is $34,057,000 above the fiscal year 2007 
funding level and $2,006,000 below the judiciary's re-estimate 
of fiscal year 2008 requirements.
    Judicial Facility Security Program.--As provided in bill 
language, the United States Marshals Service [USMS] is 
responsible for administering the Judicial Facility Security 
Program consistent with standards and guidelines agreed to by 
the Director of the Administrative Office of the U.S. Courts 
and the Attorney General. However, court security funding is 
appropriated by Congress directly to the judiciary which 
provides an important stewardship role, including financial and 
program oversight. While court security funding is subsequently 
transferred to the USMS, which is responsible for program 
administration, the Committee expects full cooperation from the 
USMS as the judiciary conducts the fiduciary and program 
oversight responsibilities pertaining to this funding.

           Administrative Office of the United States Courts

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $72,377,000
Budget estimate, 2008...................................      78,536,000
House allowance.........................................      75,667,000
Committee recommendation................................      78,536,000

                          PROGRAM DESCRIPTION

    The Administrative Office [AO] of the United States Courts 
was created in 1939 by an Act of Congress. It serves the 
Federal judiciary in carrying out its constitutional mission to 
provide equal justice under the law. Beyond providing numerous 
services to the Federal courts, the AO provides support and 
staff counsel to the Judicial Conference of the United States 
and its committees, and implements Judicial Conference policies 
as well as applicable Federal statutes and regulations. The AO 
is the focal point for communication and coordination within 
the judiciary and with Congress, the executive branch, and the 
public on behalf of the judiciary.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $78,536,000. 
This recommendation is $6,159,000 above the fiscal year 2007 
funding level and the same as the budget request.

                        Federal Judicial Center

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $22,874,000
Budget estimate, 2008...................................      24,835,000
House allowance.........................................      23,994,000
Committee recommendation................................      24,475,000

                          PROGRAM DESCRIPTION

    The Federal Judicial Center, located in Washington, DC, 
improves the management of Federal judicial dockets and court 
administration through education for judges and staff and 
research, evaluation, and planning assistance for the courts 
and the Judicial Conference. The Center's responsibilities 
include educating judges and other judicial branch personnel 
about legal developments and efficient litigation management 
and court administration. Additionally, the Center also 
analyzes the efficacy of case and court management procedures 
and ensures the Federal judiciary is aware of the methods of 
best practice.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $24,475,000. 
The recommendation is $1,601,000 above the fiscal year 2007 
funding level and $360,000 below the budget request.
    The Committee has included all requested funds in the 
Center's adjustment to base and half the funds requested for 
education, research and technology enhancements. The Committee 
directs the Federal Judicial Center to keep the Committee 
apprised of staff brought on board throughout fiscal year 2007.

                       Judicial Retirement Funds

                    PAYMENT TO JUDICIARY TRUST FUNDS

Appropriations, 2007....................................     $58,300,000
Budget estimate, 2008...................................      65,400,000
House allowance.........................................      65,400,000
Committee recommendation................................      65,400,000

                          PROGRAM DESCRIPTION

    The funds in this account cover the estimated future 
benefit payments to be made to retired bankruptcy judges and 
magistrate judges, claims court judges, and spouses and 
dependent children of deceased judicial officers.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $65,400,000 
for payments to the Judicial Officers' Retirement Fund and the 
Claims Court Judges Retirement Fund. The recommendation is 
$7,100,000 above the fiscal year 2007 funding level and 
identical to the budget request.

                  United States Sentencing Commission

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $14,601,000
Budget estimate, 2008...................................      16,191,000
House allowance.........................................      15,477,000
Committee recommendation................................      15,477,000

                          PROGRAM DESCRIPTION

    The United States Sentencing Commission establishes, 
reviews and revises sentencing guidelines, policies and 
practices for the Federal criminal justice system. The 
Commission is also required to monitor the operation of the 
guidelines and to identify and report necessary changes to the 
Congress.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $15,477,000. 
The recommendation is $876,000 above the fiscal year 2007 
funding level and reflective of the judiciary's re-estimate of 
fiscal year 2008 requirements.

                Administrative Provisions--The Judiciary

    The Committee recommends the following administrative 
provisions for the judiciary.
    Section 301 allows the judiciary to expend funds for the 
employment of experts and consultant services.
    Section 302 allows the judiciary, subject to the 
Committee's reprogramming procedures, to transfer up to 5 
percent between appropriations, but limits to 10 percent the 
amount that can be transferred into any one appropriation.
    Section 303 limits official reception and representation 
expenses incurred by the Judicial Conference of the United 
States to no more than $11,000.
    Section 304 requires the Administrative Office to submit an 
annual financial plan for the judiciary.
    Section 305 allows for a salary adjustment for Justices and 
judges.
    Section 306 grants the judicial branch the same tenant 
alteration authorities as the executive branch.
    Section 307 clarifies that the U.S. Marshals Service has 
the authority to provide security services at several 
designated primary courthouses as part of a pilot program.
    Section 308 adds Vancouver, Washington, as a place of 
holding court.

                                TITLE IV

                          DISTRICT OF COLUMBIA

                            Federal Payments

                             FEDERAL FUNDS

    A total of $613,746,000 in Federal funds are estimated to 
be available to the District of Columbia government, the 
District of Columbia Courts, the District of Columbia Court 
Services and Offender Supervision Agency, and other D.C. 
entities. This is $22,734,000 above the fiscal year 2007 
enacted level and $16,157,000 above the budget request. A total 
of $2,015,854,000 in Federal funds will be received by the 
District government from the various Federal grant programs, 
including Federal reimbursements from such programs as Medicaid 
and Medicare.

   FEDERAL PAYMENT FOR DISTRICT OF COLUMBIA RESIDENT TUITION SUPPORT

Appropriations, 2007....................................     $32,868,000
Budget estimate, 2008...................................      35,100,000
House allowance.........................................      35,100,000
Committee recommendation................................      33,000,000

                          PROGRAM DESCRIPTION

    The Resident Tuition Support program was created by the 
District of Columbia College Access Act of 1999 and expanded 
through the District of Columbia College Access Improvement Act 
of 2001. This program provides eligible college-bound District 
residents the opportunity to expand their higher education 
choices.
    Under the program, financial assistance is available to 
qualified District residents who attend public colleges outside 
of the District of Columbia, private postsecondary institutions 
in the District of Columbia, Maryland, or Virginia, or any 
historically black college or university. The private-school 
tuition grants are restricted to nonprofit institutions. 
Students who attend public schools receive assistance equal to 
the difference between the tuition paid by residents of the 
state in which the institution is located and the tuition 
charged to nonresident students, with an annual limit of 
$10,000 and a lifetime limit of $50,000. Private-school 
students receive a $2,500 maximum annual grant, with a lifetime 
limit of $12,500.
    Since its inception, the program has disbursed nearly 
$160,000,000 for the benefit of over 11,000 District of 
Columbia residents. Thirty-eight percent of the grantees are 
the first members of their families to attend college.
    The Committee understands that the program will have an 
estimated $7,000,000 in carryover funds available in fiscal 
year 2008, and even if projected program costs reach almost 
$38,000,000, additional Federal funds needed to cover those 
costs would total only $31,000,000.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $33,000,000 
for the resident tuition support program, an increase of 
$132,000 over the fiscal year 2007 enacted level and $2,100,000 
below the budget request. The Committee urges the State 
Education Office to continue its efforts to improve the college 
graduation rate of program participants. Because program costs 
have the potential of growing beyond a level for which 
increased Federal funding may be available and sustainable, the 
Committee directs the Mayor and the State Education Office to 
institute effective cost containment measures and regularly 
report to Congress on the effects of these efforts. The 
Committee further directs the District to fully explore non-
Federal sources of additional funds to augment the Federal 
investment to meet program needs. As specified in Public Law 
106-98 which established the program, the Committee directs the 
Mayor to address any insufficiency in funding through ratable 
reductions and other adjustments or prioritization 
considerations based on the income and need of eligible 
students.

   FEDERAL PAYMENT FOR EMERGENCY PLANNING AND SECURITY COSTS IN THE 
                          DISTRICT OF COLUMBIA

Appropriations, 2007....................................      $8,533,000
Budget estimate, 2008...................................       3,000,000
House allowance.........................................       3,352,000
Committee recommendation................................       3,352,000

                          PROGRAM DESCRIPTION

    Due to the fact that the District of Columbia is the seat 
of the Federal Government and headquarters of many 
international organizations, District police, fire, and 
emergency personnel have had to provide security for a number 
of events. As the need for the District of Columbia to provide 
security has increased, overtime costs for personnel escalate 
and divert police from neighborhood patrols. The President has 
supported reimbursing the District for these costs. In 
addition, the District of Columbia National Guard, under the 
exclusive jurisdiction of the President of the United States, 
is specifically trained to support law enforcement during 
critical missions, such as demonstrations, Presidential 
inaugurations and funerals, and emergency services for weather-
relayed contingencies. The D.C. Air Guard patrols the skies 
over the District on round-the-clock alert. However, residency 
restrictions preclude a significant number of Guard members 
from eligibility for tuition assistance programs, which has 
severely hampered recruitment and retention efforts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,352,000 to reimburse the 
District of Columbia for the costs of providing public safety 
at events related to the presence of the national capital in 
the District of Columbia and for the costs of providing support 
to respond to immediate and specific terrorist threats or 
attacks in the District of Columbia or surrounding 
jurisdictions. The Committee recommends $352,000 for a tuition 
assistance program for non-resident District of Columbia 
National Guard members. The total funding is $5,181,000 below 
the fiscal year 2007 enacted level and $352,000 above the 
budget request.

           FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS

Appropriations, 2007....................................    $216,723,000
Budget estimate, 2008...................................     213,861,000
House allowance.........................................     256,395,000
Committee recommendation................................     217,318,000

                          PROGRAM DESCRIPTION

    Under the National Capital Revitalization and Self-
Government Improvement Act of 1997, the Federal Government is 
required to finance the District of Columbia Courts. This 
Federal payment to the District of Columbia Courts funds the 
operations of the District of Columbia Court of Appeals, 
Superior Court, the Court System, and the Capital Improvement 
Program. Capital improvements include establishing a permanent 
home for the D.C. Family Court, a complete renovation of the 
historic Old Courthouse, as well as design and renovation work 
on several other buildings in Judiciary Square. By law, the 
annual budget includes estimates of the expenditures for the 
operations of the Courts prepared by the Joint Committee on 
Judicial Administration and the President's recommendation for 
funding the Courts' operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment to the District 
of Columbia Courts of $217,318,000, which is $595,000 above the 
fiscal year 2007 enacted level and $3,457,000 above the budget 
request. This amount includes $10,800,000 for the Court of 
Appeals, $98,359,000 for the Superior Court, $52,170,000 for 
the Court System, and $55,989,000 for capital improvements to 
courthouse facilities.
    The Committee is very concerned about the substandard 
working conditions of the United States Marshals Service at the 
Moultrie Courthouse Cell Block. The work areas have inadequate 
ventilation and insufficient space for storage of their 
personal effects. While this is unpleasant and should be 
remedied, the Committee is primarily concerned that safety of 
the marshals may be compromised by these conditions. Currently, 
the security equipment fails to provide complete monitoring of 
all areas of the cell block, allowing for blind spots which 
pose a risk to both marshals and inmates. In addition, the 
cells are not large enough to accommodate the inmate 
population, leading to 50 or more people being held in a cell 
intended for no more than 20, creating unacceptable conditions. 
Therefore, the Committee directs the District of Columbia 
Courts to report to the Committee, within 60 days of enactment 
of this act, on the plan to upgrade the conditions to an 
acceptable level. The Committee strongly encourages the 
District of Columbia Courts to incorporate cell block upgrades 
as a priority among the other capital requirements that are 
funded through this recommendation.

          DEFENDER SERVICES IN THE DISTRICT OF COLUMBIA COURTS

Appropriations, 2007....................................     $43,475,000
Budget estimate, 2008...................................      43,475,000
House allowance.........................................      52,475,000
Committee recommendation................................      43,475,000

                          PROGRAM DESCRIPTION

    The District of Columbia Courts appoint and compensate 
attorneys to represent persons who are financially unable to 
obtain such representation. The Defender Services programs 
provide counsel for indigent persons who are charged with 
criminal offenses, for family proceedings involving child 
abuse, neglect, and termination of parental rights, and for 
guardianship proceedings for protection of mentally 
incapacitated individuals and minors whose parents are 
deceased.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $43,475,000 
for Defender Services in the District of Columbia Courts. This 
is the same as the fiscal year 2007 enacted level and the same 
as the budget request.

 FEDERAL PAYMENT TO THE COURT SERVICES AND OFFENDER SUPERVISION AGENCY 
                      FOR THE DISTRICT OF COLUMBIA

Appropriations, 2007....................................    $179,603,000
Budget estimate, 2008...................................     190,343,000
House allowance.........................................     190,343,000
Committee recommendation................................     190,791,000

                          PROGRAM DESCRIPTION

    The Court Services and Offender Supervision Agency [CSOSA] 
for the District of Columbia is an independent Federal agency 
created by the National Capital Revitalization and Self-
Government Improvement Act of 1997. CSOSA acquired the 
operational responsibilities for the former District agencies 
in charge of probation and parole, and houses the Pretrial 
Services Agency within its framework. The mission of CSOSA is 
to increase public safety, prevent crime, reduce recidivism and 
support the fair administration of justice in close 
collaboration with the community. The CSOSA appropriation 
supports the Community Supervision Program and the Pretrial 
Services Agency.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $190,791,000, 
which is $11,188,000 above the fiscal year 2007 enacted level 
and $448,000 above the budget request. The Committee notes that 
the increased resources will enable CSOSA to open all units of 
the Re-Entry and Sanctions Center and allow Pretrial Services 
to reduce the ratio of pre-trial supervisors to defendants from 
approximately 124:1 to 75:1, slightly above the national 
average. However, the Committee is concerned that even with the 
proposed budget increase, funding for CSOSA for offender 
contract treatment, including substance abuse, halfway-back 
residential sanctions, mental health and sex offender 
assessments, and transitional housing remains flat. CSOSA 
estimates that there are 2,800 chronic, substance-abusing 
offenders in need of treatment intervention on an annual basis. 
Of this number, approximately 1,150, or 41 percent, are 
supervised at the maximum or intensive highest-risk level, but 
the budget will enable CSOSA to provide the full continuum of 
contract treatment services for only 60 percent of the highest 
risk offenders. The Committee provides additional funds to help 
CSOSA begin to address this shortfall.
    The Committee is supportive of CSOSA's efforts to 
successfully return ex-offenders to their communities. For a 
number of years, CSOSA has worked with grassroots, nonprofit 
providers of transitional housing that offer counseling, 
mentoring, and life skills training to men and women returning 
home from prison. The Committee notes that this is a model 
program for the Nation and intends that not less than 
$1,000,000 be available to continue this important work.

  FEDERAL PAYMENT TO THE PUBLIC DEFENDER SERVICE FOR THE DISTRICT OF 
                                COLUMBIA

Appropriations, 2007....................................     $31,103,000
Budget estimate, 2008...................................      32,710,000
House allowance.........................................      32,710,000
Committee recommendation................................      32,710,000

                          PROGRAM DESCRIPTION

    The Public Defender Service [PDS] for the District of 
Columbia, an independent organization established by a District 
of Columbia statute (16 D.C. Code 2-1601-1608), has a distinct 
mission to provide legal representation services within the 
District of Columbia. PDS provides legal representation to 
indigent defendants and provides support in the form of 
training, consultation, and legal reference services to members 
of the local bar appointed as counsel in criminal, juvenile, 
and mental health cases involving indigent individuals. In 
prior years, PDSDC was funded as a part of the Court Services 
and Offender Supervision Agency [CSOSA]. However, the missions 
of the two organizations are separate and distinct. The PDS, 
like public defender agencies of other jurisdictions, should 
have an independent budget submission and appropriation. 
Recognizing that status, the Committee provides funding for the 
Public Defender Service for the District of Columbia separately 
from that of CSOSA.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment to the Public 
Defender Service for the District of Columbia of $32,710,000, 
which is $1,607,000 above the fiscal year 2007 enacted level 
and the same as the budget request.

 FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY

Appropriations, 2007....................................      $6,930,000
Budget estimate, 2008...................................      12,000,000
House allowance.........................................      12,000,000
Committee recommendation................................      12,000,000

                          PROGRAM DESCRIPTION

    Approximately one-third of the District is served by a 
combined sewer system, constructed by the Federal Government in 
1890, in which both sanitary waste and storm water flow through 
the same pipes. When the collection system or the Blue Plains 
treatment plant reach capacity, typically during periods of 
heavy rainfall, the system is designed to overflow the excess 
water. This mixture of sewage and storm water runoff is 
discharged to the Anacostia and Potomac Rivers, Rock Creek and 
tributary waters between 60 and 75 times each year. Under a 
judicial consent decree, the Water and Sewer Authority is 
undertaking a 20-year, $2,200,000,000 sewer construction 
program to reduce overflows, which is projected to improve 
water quality and significantly reduce debris in our Nation's 
capital waterways.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $12,000,000, 
to be matched by $7,000,000 provided by the Water and Sewer 
Authority, and $5,000,000 in local funds, to continue 
implementation of the Combined Sewer Overflow Long-Term Plan. 
This is an increase of $5,070,000 above the fiscal year 2007 
enacted level and the same as the budget request.

      FEDERAL PAYMENT TO THE CRIMINAL JUSTICE COORDINATING COUNCIL

Appropriations, 2007....................................      $1,287,000
Budget estimate, 2008...................................       1,300,000
House allowance.........................................       1,300,000
Committee recommendation................................       1,300,000

                          PROGRAM DESCRIPTION

    The Criminal Justice Coordinating Council for the District 
of Columbia [CJCC] is the primary venue in which District of 
Columbia criminal justice agencies can identify and address 
interagency coordination issues. Its mission is to address 
coordination difficulties among District of Columbia criminal 
justice agencies and address criminal justice issues, such as 
drugs, juvenile justice, halfway houses, information 
technology, and identification of arrestees. The CJCC was 
originally established pursuant to a Memorandum of Agreement in 
May 1998 and operates as an independent working group to foster 
cooperation among the more than a dozen Federal and local 
governmental agencies which have law enforcement responsibility 
in our Nation's Capital. As part of a local enactment in August 
2001, the CJCC was established as an independent agency within 
the District of Columbia.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $1,300,000 to 
the Criminal Justice Coordinating Council [CJCC]. This is 
$13,000 above the fiscal year 2007 enacted level and the same 
as the budget request. The Committee directs the CJCC to submit 
annual performance measures in an annual report, which should 
also describe progress made on individual CJCC initiatives.

                 FEDERAL PAYMENT FOR SCHOOL IMPROVEMENT

Appropriations, 2007....................................     $39,600,000
Budget estimate, 2008...................................      40,800,000
House allowance.........................................      40,800,000
Committee recommendation................................      40,800,000

                          PROGRAM DESCRIPTION

    The Committee continues a three-sector funding arrangement 
to provide resources for the District of Columbia Public 
Schools, charter schools, and for a scholarship program for 
low-income students to attend private schools. Given the 
beleaguered state of the District of Columbia Public School 
System, the Committee is encouraged by the enactment of Public 
Law 110-33 and the Mayor's initiative to chart a new management 
course for the troubled public school system. The Committee 
acknowledges the daunting challenges this undertaking presents, 
given that District of Columbia public school students 
chronically perform well below national averages in reading and 
mathematics, fewer than half of the core courses in District 
schools are taught by teachers who have earned a degree or 
passed competency classes in their subjects, antiquated 
administrative recordkeeping system falls woefully short of any 
reasonable standards, and school buildings throughout the city 
suffer from disrepair, including hazardous defects, of 10 
waiting months or even years for necessary repairs. Despite 
decades of varied and inconsistent efforts and alternative 
approaches, past attempts to institute change have regrettably 
failed to produce the comprehensive, sustainable results 
required for the children of the District.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $40,800,000, 
which is $1,200,000 above the fiscal year 2007 enacted level 
and the same as budget request. These funds are allocated as 
follows: $13,000,000 for the District of Columbia Public 
Schools; $13,000,000 to expand quality charter schools; and 
$14,800,000 to the Secretary of Education for opportunity 
scholarships for low-income students in the District of 
Columbia, $1,800,0000 of which may be used for administrative 
expenses. The Committee encourages the Mayor and associated 
staff to consider the structure and composition of the Federal 
payments for school improvement into the framework of the 
District of Columbia Public Schools and the Mayor's policy 
agenda.
    The Committee notes that the 5-year pilot program for 
opportunity scholarships for low-income students is entering 
its final year, and expects that evaluation reports will be 
timely submitted. The Committee is aware that the Government 
Accountability Office is currently reviewing this program. The 
Committee directs that within 60 days of enactment, the 
Secretary of Education shall report to the Committees on 
Appropriations on (1) the sufficiency of the staffing and 
accounting systems of the grantee to enable reliable reporting 
on program operations; (2) steps taken by the grantee to 
provide accurate information to parents regarding the 
characteristics of participating schools, including 
accreditation and the proportion of teachers holding at least a 
bachelor's degree; (3) the extent to which the grantee is 
conducting regular site inspections and financial evaluations 
of participating schools; (4) whether the grantee maintains 
sufficient documentation of tuition and fees of participating 
schools so as to ensure that schools charge program 
participants and other student the same tuition and fees; and 
(5) how the grantee determines whether participating schools 
are lawfully operating in the District of Columbia, including 
requirements affecting the safety and health of children.

          FEDERAL PAYMENT FOR CONSOLIDATED LABORATORY FACILITY

Appropriations, 2007....................................      $4,950,000
Budget estimate, 2008...................................      10,000,000
House allowance.........................................      10,000,000
Committee recommendation................................      10,000,000

                          PROGRAM DESCRIPTION

    The District's forensics laboratory capacity has not kept 
pace with the innovations in the field and is therefore unable 
to meet the demands of the current workload. As a result, the 
District is forced to seek help from the FBI crime laboratory 
in Quantico, Virginia. Because the FBI has its own workload 
capacity, it limits the evidence it will process for the 
District to four pieces of forensic evidence for violent 
crimes. The lack of capacity and outmoded technology have led 
to many so-called ``cold'' or unsolved crime cases in the 
District. A new comprehensive laboratory will not only allow 
the District to more effectively and efficiently process crime 
cases, but it will be an essential element in processing 
evidence associated with potential bioterrorism attacks.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $10,000,000 
for costs associated with the construction of a new 
comprehensive laboratory facility in the District of Columbia. 
This is $5,050,000 above the fiscal year 2007 enacted level, 
and the same as the budget request. The Committee directs that 
this Federal payment be equally matched with local funds.

        FEDERAL PAYMENT FOR CENTRAL LIBRARY AND BRANCH LOCATIONS

Appropriations, 2007....................................................
Budget estimate, 2008...................................     $10,000,000
House allowance.........................................      10,000,000
Committee recommendation................................      10,000,000

                          PROGRAM DESCRIPTION

    The District's libraries are in a state of significant 
disrepair and are poorly equipped. The adult illiteracy rate in 
the District of Columbia is 37 percent. In many major 
metropolitan areas around the country, new libraries have 
revitalized many distressed neighborhoods. A Blue Ribbon Task 
Force of local and national experts recommended the creation of 
a state-of-the-art library system to add multi-lingual support, 
hundreds of new computers with broadband technology, and deep 
reference materials and children's programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $10,000,000 
as a Federal contribution toward the costs associated with the 
renovation and rehabilitation of District of Columbia 
libraries. This is $10,000,000 above the fiscal year 2007 
enacted level and the same as the budget request.

    FEDERAL PAYMENT TO REIMBURSE THE FEDERAL BUREAU OF INVESTIGATION

Appropriations, 2007....................................................
Budget estimate, 2008...................................      $5,000,000
House allowance.........................................       4,000,000
Committee recommendation................................       5,000,000

                          PROGRAM DESCRIPTION

    Due to lack of capacity at its laboratory, the District of 
Columbia has relied on the services of the Federal Bureau of 
Investigations to perform evidence examination and analysis in 
criminal cases to help process backlogged cases and help solve 
cold cases.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment to the District 
of Columbia of $5,000,000 to remain available until September 
30, 2010 to be used to reimburse the Federal Bureau of 
Investigation for laboratory services for District of Columbia 
cases. This is $5,000,000 above the fiscal year 2007 enacted 
level, and the same as the budget request. The funds shall be 
available for the sole purposes of paying costs incurred by the 
FBI for evidence examination and subsequent DNA analysis for 
the District of Columbia cold case DNA backlog, expansion of 
resources dedicated to the processing of District of Columbia 
cases, including an increase in personnel, after October 1, 
2007, and data entry and analysis for District of Columbia cold 
cases.

FEDERAL PAYMENT TO THE EXECUTIVE OFFICE OF THE MAYOR OF THE DISTRICT OF 
                                COLUMBIA

Appropriations, 2007....................................................
Budget estimate, 2008...................................................
House allowance.........................................................
Committee recommendation................................     $14,000,000

                        COMMITTEE RECOMMENDATION

    The Committee provides $14,000,000 as a Federal payment to 
the Executive Office of the Mayor of the District of Columbia 
to enhance the quality of life for the District's residents. 
The Committee intends that of this amount, $5,000,000 shall be 
to enhance local efforts to improve the water quality of the 
Anacostia River; $2,200,000 shall be used to support the 
Mayor's new public education initiative; $1,800,000 shall be 
used to promote and sustain financial stability for married 
couples in the District; $4,000,000 shall be used to expand 
pediatric healthcare services; and $1,000,000 for historic 
preservation. The Committee directs the Mayor to submit a 
detailed spending plan, including performance measures, before 
these funds may be expended. The Committee requests that the 
Mayor provide this plan within 30 days of the enactment of this 
act. The Committee further directs the Mayor to submit a 
progress report on activities conducted no later than June 1, 
2008, and a final report, including a detailed description of 
outcomes achieved, no later than November 1, 2009.

                       HIGHLIGHTS OF INITIATIVES

    The Committee notes the successful launch of the ``Together 
is Better'' program in the District of Columbia, a community-
based effort to promote, support and stabilize marriages in 
low-income neighborhoods as a strategy for decreasing the 
incidence of single parenthood.
    In fiscal year 2006, the Committee provided $3,000,000 to 
initiate this effort. A key component of the program are 
Marriage Development Accounts [MDAs], which offer low-income 
married or engaged couples the opportunity to save for the 
purchase of a home, to start a business, or to pay for post-
secondary education or job training for themselves or their 
children. Couples must meet income and asset requirements to 
qualify for an MDA. Participating couples have a high incentive 
to save because their contributions will be matched at a ratio 
of 3:1 by the Federal Government and partnering private 
institutions.
    Using Federal funds, community-based organizations are 
providing participating couples with financial counseling, 
couples' mentoring, couples' counseling, and relationship 
training. These organizations are also reaching out to the 
community through a media campaign and by hosting informational 
events and ``family fun days'' in neighborhood churches, civic 
centers, and parks.
    The Committee is pleased to highlight some of the first-
year successes of the federally funded ``Together is Better'' 
program: 100 couples have participated in couples workshops; 40 
couples have opened MDA accounts and are saving for appreciable 
assets; over 100 men have participated in fatherhood training; 
850 families have participated in ``Family Fun Days'' in the 
District's Ward 7 and Ward 8; and 125 couples renewed their 
vows during ``Celebration of Black Marriage Day.''
    The Committee is pleased that the Mayor of the District of 
Columbia has recognized these efforts and has provided $400,000 
in fiscal year 2007 to continue to support the ``Together is 
Better'' program.
    Employment Assistance.--The Committee is impressed with the 
success of STRIVE-DC which provides assistance for the hard to 
serve in obtaining and retaining employment. The Committee 
urges the District of Columbia Department of Employment 
Services to work with STRIVE-DC to expand and replicate this 
model of demonstrated effectiveness in order to serve 
additional job seekers.

              DISTRICT OF COLUMBIA LOCAL OPERATING BUDGET

    The Committee recommends a total of $9,773,775,000 for the 
operating expenses of the District of Columbia as contained in 
the fiscal year 2008 budget submitted to the Congress by the 
Government of the District of Columbia on June 7, 2007 
including requested amendments received on June 29, 2007. Of 
the total, $6,111,623,000 is from local funds, $2,015,854,000 
is from Federal grant funds, $1,637,736,000 is from other 
funds, and $8,562,000 is from private funds. The Committee 
directs that any changes to the financial plan as submitted by 
the District must follow the reprogramming guidelines.

                                TITLE V

                          INDEPENDENT AGENCIES

                  Commodity Futures Trading Commission

Appropriations, 2007....................................     $97,981,000
Budget estimate, 2008...................................     116,000,000
House allowance.........................................           (\1\)
Committee recommendation................................     116,000,000

\1\This account is funded in the Agriculture appropriations bill in the 
House of Representatives, which has not been acted on in the House.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Commodity Futures Trading Commission [CFTC] was 
established as an independent agency by the Commodity Futures 
Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C. 4a).
    The Commission administers the Commodity Exchange Act, 7 
U.S.C. section 1, et seq. The 1974 Act brought under Federal 
regulation futures trading in all goods, articles, services, 
rights, and interests; commodity options trading; and leverage 
trading in gold and silver bullion and coins; and otherwise 
strengthened the regulation of the commodity futures trading 
industry. It established a comprehensive regulatory structure 
to oversee the volatile futures trading complex.
    The CFTC is the sole Federal regulator responsible for 
overseeing the futures markets by encouraging competitiveness 
and efficiency, ensuring market integrity, and protecting 
market participants against manipulation, abusive trading 
practices, fraud, and other unscrupulous activities. Effective 
oversight by the CFTC enables the markets to better serve their 
designated functions of providing a price discovery mechanism 
and a means to offset price risk.
    Programs in support of the overall mission include market 
surveillance analysis and research; registration, audits, and 
contract markets; enforcement; reparations; proceedings; legal 
counsel; agency direction; and administrative support services. 
CFTC activities are carried out in Washington, DC and in 
regional offices located in Chicago, New York City, and Kansas 
City.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $116,000,000 
for the Commodity Futures Trading Commission. This is the same 
as the budget request, and $18,019,000 above the fiscal year 
2007 enacted level. The Committee supports the need for 
increased resources for the CFTC to ensure appropriate 
oversight of the futures markets, which are expanding steadily 
in volume and new users, and rapidly evolving in their 
complexity and diversity. The Committee recognizes that to keep 
pace with the industry it regulates, the CFTC must reverse 
critical staffing declines in order to achieve and sustain a 
sufficient level of specialized expertise essential in the face 
of a quintupled trading volume on U.S. exchanges, the rapidly 
changing nature of traded products, evolving platforms on which 
they are traded, and the need for vigilant enforcement to 
preserve market integrity and protect market users. The 
Committee further acknowledges the need for CFTC to make 
mission-critical investments in technology.

                   Consumer Product Safety Commission

                         salaries and expenses

Appropriations, 2007....................................     $62,728,000
Budget estimate, 2008...................................      63,250,000
House allowance.........................................      66,838,000
Committee recommendation................................      70,000,000

                          program description

    The Commission is an independent regulatory agency that was 
established on May 14, 1973, and is responsible for protecting 
the public against unreasonable risks of injury from consumer 
products; assisting consumers to evaluate the comparative 
safety of consumer products; developing uniform safety 
standards for consumer products and minimizing conflicting 
State and local regulations; and promoting research and 
investigation into the causes and prevention of product-related 
deaths, illnesses, and injuries.
    In carrying out its mandate, the Commission establishes 
mandatory product safety standards, where appropriate, to 
reduce the unreasonable risk of injury to consumers from 
consumer products; helps industry develop voluntary safety 
standards; bans unsafe products if it finds that a safety 
standard is not feasible; monitors recalls of defective 
products; informs and educates consumers about product hazards; 
conducts research and develops test methods; collects and 
publishes injury and hazard data, and promotes uniform product 
regulations by governmental units.

                        committee recommendation

    The Committee recommends $70,000,000 for the Consumer 
Product Safety Commission, which is $7,272,000 above the fiscal 
year 2007 funding level and $6,750,000 above the budget 
request. The Committee provides additional funding to hire 
needed employees, particularly in the areas of hazard 
identification and reduction, and compliance and field 
operations, space for additional employees, and critically 
needed IT improvements. The Committee is aware that nearly two-
thirds of all products recalled are imports and two-thirds of 
those are made in China. The funding increase provided will 
help the CPSC carry out its important mission of protecting 
children and families against unreasonable risk of injury and 
death from consumer products.

                     Election Assistance Commission

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2007....................................     $16,263,000
Budget estimate, 2008...................................      15,467,000
House allowance.........................................   \1\15,467,000
Committee recommendation................................      16,517,000

\1\The House bill also provides $300,950,000 under a separate account 
designated for Election Reform Programs.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Election Assistance Commission [EAC] was created by the 
Help America Vote Act of 2002 [HAVA]. Under HAVA, the EAC's 
role is to promulgate voluntary State guidelines for election 
systems, develop a national certification program for voting 
equipment, and provide related guidance. The EAC is also 
charged with awarding grants to improve election administration 
and enhancing election equipment.

                        COMMITTEE RECOMMENDATION

    The Committee provides $16,517,000 for EAC's administrative 
expenses, which is $254,000 more than the fiscal year 2007 
level and $1,050,000 more than the budget request. The 
accompanying bill provides $3,250,000 of these funds for 
transfer to the National Institute for Standards and Technology 
for technical assistance related to the development of 
voluntary State voting systems guidelines.
    Of the additional funds provided, $750,000 is provided for 
the Help America Vote Act College Program. The Committee also 
provides $300,000 within the overall amount provided, for mock 
election programs for students in secondary education programs 
with oversight and competitive award by the EAC. Before funding 
is awarded, any grantee shall explain in detail how the mock 
elections are to be conducted, the number of students 
participating, guidelines that the program employs, internal 
fiscal controls used, and a statement attesting to the non-
partisanship of the program.
    Research Products.--The Committee directs that no Federal 
funds shall be used in a way that would bar the public release 
of final research presented to the Commission for its 
consideration. While the Commission may determine how to 
respond to research performed with Federal funds, any use of 
research paid for from the public funds shall be made available 
without substantive edits. The Commission shall review and 
produce its own reports without partisan influence or bias, and 
shall not unduly limit the rights of Federally-funded 
researchers to speak freely about the research following the 
conclusion of the contract.

                   Federal Communications Commission

                         SALARIES AND EXPENSES

Appropriations, 2007....................................    $291,282,000
Budget estimate, 2008...................................     313,000,000
House allowance.........................................     313,000,000
Committee recommendation................................     313,000,000

                          PROGRAM DESCRIPTION

    The FCC is charged with regulating interstate and 
international communications by radio, television, wire, 
satellite, and cable. The FCC is also charged with promoting 
the safety of life and property through wire and radio 
communications. The mandate of the FCC under the Communications 
Act is to make available to all people of the United States a 
rapid, efficient, nationwide, and worldwide wire and radio 
communication service. The FCC performs five major functions to 
fulfill this charge: spectrum allocation, creating rules to 
promote fair competition and protect consumers where required 
by market conditions, authorization of service, enhancing 
public safety and homeland security, and enforcement.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides $313,000,000 for the 
salaries and expenses of the Federal Communications Commission 
[FCC], of which $312,000,000 is to be derived from the 
collection of fees. The recommendation is $21,718,000 above the 
fiscal year 2007 enacted level and the same as the budget 
request.
    Broadcast Television Standards.--The Committee continues to 
be concerned about the declining standards of broadcast 
television and the impact this decline is having on America's 
children. Overall sexual content, foul language, and violence 
have greatly increased over the past decade. The Committee 
directs the FCC to continue to report to Congress on the issues 
associated with resurrecting a broadcast industry code of 
conduct for content of programming that, if adhered to by the 
broadcast industry, would protect against the further erosion 
of broadcasting standards.
    The Committee has included language (sec. 501) to extend 
FCC's exemption from the Anti-deficiency Act [ADA] until 
December 31, 2008. The ADA contains accounting rules which 
would derail the operation of the FCC's universal service 
electronic rate program. Requiring the FCC to adhere to the ADA 
would result in the disruption of payments to schools and 
libraries for broadband services.
    The Committee has included language (sec. 502) that 
prohibits the FCC from enacting certain recommendations 
regarding universal service that were made to it by the Joint 
Board of FCC members and State Utility Commissioners. The 
recommendation would limit universal support to one line. This 
would be harmful to small businesses, especially in rural 
areas, which need a second line for a fax or for other business 
purposes.

                 Federal Deposit Insurance Corporation

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2007....................................   ($30,690,000)
Budget estimate, 2008...................................    (26,848,000)
House allowance.........................................    (26,848,000)
Committee recommendation................................    (26,848,000)

                          PROGRAM DESCRIPTION

    The FDIC Office of Inspector General conducts audits, 
investigations, and other reviews to assist and augment the 
FDIC's contribution to the stability of, and public confidence 
in, the Nation's financial system. A separate appropriation 
more effectively ensures the OIG's independence consistent with 
the Inspector General Act of 1978, as amended and other 
legislation.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $26,848,000 for the FDIC inspector 
general, the same as the budget request and $3,842,000 less 
than the fiscal year 2007 enacted level. Funds are to be 
derived by transfer from the Deposit Insurance Fund and the 
FSLIC resolution fund.

                      Federal Election Commission

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $54,528,000
Budget estimate, 2008...................................      59,224,000
House allowance.........................................      59,224,000
Committee recommendation................................      59,224,000

                          PROGRAM DESCRIPTION

    The Federal Election Commission [FEC] was created through 
the 1974 Amendments to the Federal Election Campaign Act of 
1971 [FECA]. Consistent with its duty of executing our Nation's 
Federal campaign finance laws, and in pursuit of its mission of 
maintaining public faith in the integrity of the Federal 
campaign finance system, FEC conducts three major regulatory 
programs: (1) providing public disclosure of funds raised and 
spent to influence Federal elections; (2) enforcing compliance 
with restrictions on contributions and expenditures made to 
influence Federal elections; and (3) administering public 
financing of Presidential campaigns.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $59,224,000 for the Federal 
Election Commission, which is the same as the budget request 
and $4,696,000 more than the fiscal year 2007 enacted level.
    So that the Congress may better understand the impact of 
the cost of political advertising on the overall escalation of 
the costs of House and Senate campaigns, the Government 
Accountability Office shall report to the Congress on the 10-
year trend in the cost of House and Senate campaigns as well as 
the percentage of those costs that are incurred due to rising 
broadcast advertising rates.
    The Committee instructs the Government Accountability 
Office to revisit and update the report entitled ``Campaign 
Finance Reform: Early Experiences of Two States That Offer Full 
Public Funding'' (GAO-03-453), to account for data and 
experiences from the last two election cycles.

                   Federal Labor Relations Authority

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $25,372,000
Budget estimate, 2008...................................      23,718,000
House allowance.........................................      23,641,000
Committee recommendation................................      23,718,000

                          PROGRAM DESCRIPTION

    The Federal Labor Relations Authority [FLRA] is an 
independent administrative Federal agency created by title VII 
of the Civil Service Reform Act of 1978 with a mission to carry 
out five statutory responsibilities: (1) determining the 
appropriateness of units for labor organization representation; 
(2) resolving complaints of unfair labor practices; (3) 
adjudicating exceptions to arbitrator's awards; (4) 
adjudicating legal issues relating to duty to bargain; and (5) 
resolving impasses during negotiations.
    The FLRA's authority is divided by law and by delegation 
among a three-member authority and an Office of General 
Counsel, appointed by the President and subject to Senate 
confirmation; and the Federal Service Impasses Panel, which 
consists of seven part-time members appointed by the President.
    In addition, the FLRA is engaged in case-related 
interventions and training and facilitation of labor-management 
partnerships and in resolving disputes. FLRA promotes labor-
management cooperation by providing training and assistance to 
labor organizations and agencies on resolving disputes, 
facilitates the creation of partnerships, and trains the 
parties on rights and responsibilities under the Federal Labor 
Relations Management statute.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $23,718,000 
for the Federal Labor Relations Authority. This amount is the 
same as the budget request and $1,654,000 below the fiscal year 
2007 enacted level.

                        Federal Trade Commission

                         SALARIES AND EXPENSES

Appropriations, 2007....................................    $211,289,000
Budget estimate, 2008...................................     240,239,000
House allowance.........................................     247,489,000
Committee recommendation................................     240,239,000

                          PROGRAM DESCRIPTION

    The Federal Trade Commission [FTC] administers a variety of 
Federal antitrust and consumer protection laws. Activities in 
the antitrust area include detection and elimination of illegal 
collusion, anticompetitive mergers, unlawful single-firm 
conduct, and injurious vertical agreements. The FTC regulates 
advertising practices, service industry practices, marketing 
practices, and credit practices as it addresses fraud and other 
consumer concerns.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides $240,239,000. The 
recommendation is $28,950,000 above the fiscal year 2007 
enacted level and the same as the budget request.
    Of the amounts provided, $144,600,000 is from Hart-Scott-
Rodino pre-merger filing fees and $19,000,000 is from Do-Not-
Call fees. The total amount of direct appropriations for this 
account is therefore $76,639,000. The Committee notes that this 
change reflects an increase in offsetting fee collection 
receipts since last year.
    Do-Not-Call Initiative.--The recommendation includes 
$19,000,000 for the FTC Do-Not-Call initiative and 
implementation of the Telemarketing Sales Rule [TSR], of which 
the entire amount is to be derived from the collection of fees. 
The Do-Not-Call initiative was launched pursuant to the FTC's 
amended TSR to establish a national database of telephone 
numbers of consumers who choose not to receive telephone 
solicitations from telemarketers. The Do-Not-Call initiative 
has received broad support from, and will provide significant 
benefits to, consumers from all corners of the United States.
    Child Protection.--The FTC in September of 2000, released a 
report entitled: ``Marketing Violent Entertainment to Children: 
A Review of Self-Regulation and Industry Practices in the 
Motion Picture, Music Recording & Electronic Game Industries''. 
The report was very critical of the entertainment industry and 
its persistent and calculated marketing of violent games, 
movies, and music to children. In response to this report, the 
entertainment industry has promised to impose tougher 
regulations on itself and to voluntarily comply with the 
report's recommendation. The FTC should continue with, and 
expand upon, its efforts in this area. The Committee directs 
the Commission to continue to engage in consumer research and 
workshops, underage shopper-retail compliance surveys, and 
marketing data collection.
    Internet.--The FTC is charged with monitoring compliance 
with the Children's Online Privacy Protection Act (Public Law 
105-277). The recommendation provides the Commission the 
funding resources it needs to meet the challenges of increased 
fraud on the Internet. The Committee commends the FTC for 
recognizing the unique and difficult challenge posed by the 
Internet, an international phenomenon that lacks borders, to 
protect the safety of our children.
    Childhood Obesity.--The Committee previously requested that 
the FTC prepare and submit a comprehensive analysis of the 
types and amounts of food marketing directed at children and 
adolescents including an analysis of commercial advertising 
time on television, radio, and in print media; in-store 
marketing; direct payments for preferential shelf placement; 
events; promotions on packaging; all Internet activities; and 
product placements in television shows, movies, and video 
games. While the Committee understands that this report is a 
significant undertaking, in the 2 years since the report was 
originally requested our understanding of the scope of the 
problem of childhood obesity has increased dramatically. Given 
that nearly 25 million kids are overweight or obese, and risk 
having a shorter lifespan than their parents, this information 
is critical to making informed policy decisions addressing the 
connections between childhood obesity and food marketing. As a 
result the final report shall be submitted to the Committee no 
later than December 31, 2007.
    Oil and Natural Gas.--The activities of the Commission 
include review of mergers, acquisitions and other transactions 
within the oil and natural gas industries, and investigation of 
potential anticompetitive behaviors in those industries. Given 
the enormous importance of these industries to the United 
States economy and in light of increased market concentration 
and rising prices in these industries, beginning on January 1, 
2008, the Committee directs the Commission to issue a report 
every 6 months to the Committee on Appropriations on all 
activities the Commission has taken in the previous 6 month 
period with regard to the review of mergers, acquisitions and 
other transactions and the investigation of pricing behavior or 
any potential anticompetitive actions in those industries, and 
on the resources that the Commission has devoted to such 
reviews and investigations during that period.
    Interchange Rates.--The Committee directs the Commission to 
issue a report to the Committee on Appropriations within 60 
days of enactment on all activities the Commission has taken in 
the previous 12 month period to review the antitrust 
implications of the collective setting of credit and debit card 
interchange rates and the disclosure, or lack thereof, of the 
terms and provisions of interchange rate agreements by credit 
card associations and their member banks. The Committee also 
directs the Commission to issue a report to the Committee on 
Appropriations within 180 days of enactment of this act on the 
Commission's analysis of the antitrust implications of the 
collective setting of credit and debit card interchange rates 
and the disclosure, or lack thereof, of interchange rate 
agreements by credit card associations and their member banks 
to the merchants who are parties to those card usage 
agreements.
    Office of International Affairs-Antitrust Training.--The 
Committee is aware of the FTC's ongoing and successful program 
to deploy experts to developing countries in order to assist in 
the establishment of regulatory, trade and antitrust agencies. 
Global trade and competition in the 21st century increasingly 
involves innovation, intellectual property, and technological 
change. The deployment of U.S. Government expertise to emerging 
foreign competitive authorities is an essential tool for the 
development of regulations and practices that will enable the 
adoption of balanced policies that promote and enable free 
trade. Congress established the Antitrust Modernization 
Commission to examine, identify, and study the worldwide 
modernization of antitrust laws. The Committee supports the 
efforts of the Commission and encourages the continuation of 
its competition policy programs in emerging enforcement 
jurisdictions.

                    General Services Administration

                          PROGRAM DESCRIPTION

    The General Services Administration [GSA] was established 
by the Federal Property and Administrative Services Act of 1949 
when Congress mandated the consolidation of the Federal 
Government's real property and administrative services. GSA is 
organized into the Public Buildings Service, the Federal Supply 
Service, the Federal Technology Service, the Office of 
Governmentwide Policy, and the Office of Citizen Services and 
Communications.

                        COMMITTEE RECOMMENDATION

    The Administrator.--The Committee is extremely troubled by 
the leadership of the current Administrator. The Special 
Counsel has determined that the Administrator violated the 
Hatch Act's prohibition against using the Administrator's 
official authority or influence for the purpose of interfering 
with or affecting the result of an election. These findings 
come on top of questionable actions the Administrator has taken 
in the past year with regard to procurement protocols. 
Furthermore, the Administrator has threatened the independence 
of the Inspector General by undermining the IG's ability to 
perform its oversight function and inappropriately interfering 
with the IG's budget. Moreover, the Administrator has 
repeatedly made statements about streamlining oversight, which 
could result in undermining compliance with procurement rules.
    In the past year, morale has been dampened at GSA and 
valuable employees have departed. The actions of this 
Administrator, since commencing at this agency approximately 1 
year ago, do not reflect well on the standards for ethics and 
integrity the public expects from its government.
    Policy and Operations.--The Committee does not consolidate 
the Operating Expenses account and the Government-wide Policy 
account into the ``Policy and Operations'' account as proposed 
by the budget request.
    GSA and the Office of the Inspector General.--The 
obligation of the Office of the Inspector General [OIG] is to 
ensure that the agency from top management down fosters respect 
for the facts and the law, ensures good stewardship and 
recognizes the need for independent scrutiny of government 
operations and accountability. The Committee reinforces the 
independence of the OIG and enumerates the following 
stipulations, many of which reiterate statute: (1) GSA will 
continue to reimburse the OIG $5,000,000 in fiscal year 2008 
for Multiple Award Schedule pre-award audits and contract 
performance assessments of government-wide contracts; (2) 
neither GSA personnel nor associated contractors, 
subcontractors, or private attorneys will search, read, or copy 
the content of emails that are to or from the OIG without 
permission; (3) GSA will not automatically obligate and 
disburse the funds appropriated for the OIG without prior OIG 
consent; (4) GSA will not attempt to impose any unwarranted or 
unexplained charges from OIG's appropriated funds; (5) all 
budget submissions from OIG will be transmitted by GSA without 
any alteration to OMB, and all comments and passbacks from OMB 
on such submissions will be conveyed accurately to OIG; (6) GSA 
will not impose any freeze on hiring in OIG at any level, 
including the Senior Executive Service [SES], in order to 
facilitate the OIG's ability to implement the IG Act; (7) OIG 
shall exercise authority independent of GSA for processing the 
announcement and filling of all SES vacancies, including the 
processing of all personnel functions associated with those 
positions, allocated by GSA to OIG personnel functions within 
the IG; OIG shall retain its authorization to perform all 
personnel functions for non-SES positions; (8) OIG will be 
granted the authority to initiate, and be responsible for 
conducting and adjudicating the background security clearances 
for its own employees, and will report those findings to the 
appropriate entities at GSA and OPM; and (9) neither GSA 
personnel nor associated contractors, subcontractors, or 
private attorneys will attempt to impede through intimidation 
or obfuscation, or in any other way, thwart an audit or 
investigation undertaken by the OIG under the IG Act.

     FEDERAL BUILDINGS FUND--LIMITATIONS ON AVAILABILITY OF REVENUE

                     (INCLUDING TRANSFER OF FUNDS)

Limitation of availability of revenue:
    Limitation on availability, 2007....................($7,555,088,000)
    Limitation on availability, 2008.................... (8,090,918,000)
House allowance......................................... (7,834,612,000)
Committee recommendation................................ (8,370,706,000)
    The Federal Buildings Fund program consists of the 
following activities financed from rent charges:
    Construction and Acquisition of Facilities.--Space is 
acquired through the construction or purchase of facilities and 
prospectus-level extensions to existing buildings. All costs 
directly attributable to site acquisition, construction, and 
the full range of design and construction services, and 
management and inspection of construction projects are funded 
under this activity.
    Repairs and Alterations.--Repairs and alterations of public 
buildings as well as associated design and construction 
services are funded under this activity. Protection of the 
Government's investment, health and safety of building 
occupants, transfer of agencies from leased space, and cost 
effectiveness are the principal criteria used in establishing 
priorities. Primary consideration is given to repairs to 
prevent deterioration and damage to buildings, their support 
systems, and operating equipment. This activity also provides 
for conversion of existing facilities and non-prospectus 
extensions.
    Installment Acquisition Payments.--Payments are made for 
liabilities incurred under purchase contract authority and 
lease purchase arrangements. The periodic payments cover 
principal, interest, and other requirements on the debt 
incurred for construction of Federal buildings.
    Rental of Space.--Space is acquired through the leasing of 
buildings including space occupied by Federal agencies in U.S. 
Postal Service facilities, 174 million rentable square feet in 
fiscal year 2007, and 184 million rentable square feet in 
fiscal year 2008.
    Building Operations.--Services are provided for Government-
owned and leased facilities, including cleaning, utilities and 
fuel, maintenance, miscellaneous services (such as moving, 
evaluation of new materials and equipment, and field 
supervision), and general management and administration of all 
real property related programs including salaries and benefits 
paid from the Federal Buildings Fund.
    Other Programs.--When requested by Federal agencies, the 
Public Buildings Service provides building services, such as 
tenant alterations, cleaning and other operations, and 
protection services which are in excess of those services 
provided under the commercial rental charge. For presentation 
purposes, the balances of the Unconditional Gifts of Real, 
Personal, or Other Property trust fund have been combined with 
the Federal Buildings Fund.

                      CONSTRUCTION AND ACQUISITION

Limitation on availability, 2007........................    $701,137,000
Limitation on availability, 2008........................     615,204,000
House allowance.........................................     524,540,000
Committee recommendation................................     894,992,000

                          PROGRAM DESCRIPTION

    The construction and acquisition fund shall be available 
for site, design, construction, management, and inspection 
costs for the construction of new Federal facilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $894,992,000 for 
construction and acquisition, including non-prospectus 
projects.

                      CONSTRUCTION AND ACQUISITION
------------------------------------------------------------------------
 State       Description           Amount             Requested by
------------------------------------------------------------------------
    AL Mobile, U.S.              $2,600,000  The Judiciary, Shelby
        Courthouse
    AL Tuscaloosa, Federal       21,000,000  Shelby
        Building
    AZ San Luis, Land Port        7,053,000  The President
        of Entry I
    CA San Ysidro, Land          37,742,000  The President, Feinstein
        Port of Entry
    CA San Diego, U.S.           80,000,000  The Judiciary
        Courthouse
    CA San Jose, U.S.            32,000,000  The Judiciary
        Courthouse
    DC DHS consolidation        318,887,000  The President
        and development of
        St. Elizabeths
        campus
    DC St. Elizabeths West       20,752,000  The President
        Campus
        Infrastructure
    DC St. Elizabeths West        7,000,000  The President
        Campus Site
        Acquisition
    GA Savannah, U.S.             2,059,000  The Judiciary
        Courthouse Annex
    IL Rockford, U.S.            58,792,000  The Judiciary, Durbin
        Courthouse
    ME Madawaska, Land Port      17,160,000  The President
        of Entry
    MD Montgomery County,        57,749,000  The President, Cardin,
        FDA consolidation                     Mikulski
    MO Jefferson City,           66,000,000  The Judiciary, Bond
        United States
        Courthouse
    MN Warroad, Land Port        43,628,000  The President
        of Entry
    NY Alexandria Bay, Land      11,676,000  The President
        Port of Entry
    TX El Paso, Tronillo-         4,290,000  The President
        Guadalupe
    TX San Antonio, U.S.         18,000,000  The Judiciary, Hutchison
        Courthouse
    VT Derby Line, Land          33,139,000  The President, Leahy
        Port of Entry
------------------------------------------------------------------------

    Environmental and Energy Efficiency.--The Committee is 
aware of GSA's environmental and energy-efficient initiatives 
including use of alternative-fuel and hybrid vehicles amounting 
to 31 percent of the total GSA fleet; use of wind, solar and 
other innovative renewable energy sources in its buildings; and 
energy-efficient buildings that incorporate sustainable design 
principles resulting in less energy consumption. The Committee 
understands that future plans include: working with USDA to 
identify opportunities to increase use of biobased products; 
working with the Customs and Border Protection and Federal 
Highway Administration to develop strategies for land ports of 
entry to self-generate electricity; and working to integrate 
power controls into IT operations. The Committee is encouraged 
by these efforts. The Committee provides funding for the use of 
photovoltaic energy in public buildings pursuant to the Energy 
Policy Act of 2005 (Public Law 109-58). The Committee directs 
GSA to report to the Committee within 120 days after enactment 
of this act on these and any other initiatives for the 
environment, energy efficiency, and conservation.

                        REPAIRS AND ALTERATIONS

Limitation on availability, 2007........................    $618,241,000
Limitation on availability, 2008........................     804,483,000
House allowance.........................................     733,267,000
Committee recommendation................................     804,483,000

                          PROGRAM DESCRIPTION

    Under this activity, the General Services Administration 
[GSA] executes its responsibility for repairs and alterations 
[R&A] of both Government-owned and leased facilities under the 
control of GSA. The primary goal of this activity is to provide 
commercially equivalent space to tenant agencies. Safety, 
quality, and operating efficiency of facilities are given 
primary consideration in carrying out this responsibility.
    R&A workload requirements originate with scheduled onsite 
inspections of buildings by qualified regional engineers and 
building managers. The work identified through these 
inspections is programmed in order of priority into the 
Inventory Reporting Information System [IRIS] and incorporated 
into a 5-year plan for accomplishment, based upon funding 
availability, urgency, and the volume of R&A work that GSA has 
the capability to execute annually. Since fiscal year 1995, 
design and construction services activities associated with 
repair and alteration projects have been funded in this 
account.

                        COMMITTEE RECOMMENDATION

    The Committee recommends new obligational authority of 
$804,483,000 for repairs and alterations in fiscal year 2008. 
This amount is the same as the President's request.

                         REPAIRS AND ALTERATIONS
------------------------------------------------------------------------
 State       Description           Amount             Requested by
------------------------------------------------------------------------
    DC Eisenhower Executive    $172,279,000  The President
        Office Building
        Phase III
    DC Joint Operations          12,800,000  The President
        Center
    DC Nebraska Avenue           27,673,000  The President
        Complex
    NV Reno, C. Clifton          12,793,000  The President
        Young Federal
        Building and
        Courthouse
    NY Thurgood Marshall        170,544,000  The President
        U.S. Courthouse
    WV Martinsburg, IRS          35,822,000  The President
        Enterprise
        Computing Center
------------------------------------------------------------------------

                    INSTALLMENT ACQUISITION PAYMENTS

Limitation on availability, 2007........................    $163,999,000
Limitation on availability, 2008........................     155,781,000
House allowance.........................................     155,781,000
Committee recommendation................................     155,781,000

                          PROGRAM DESCRIPTION

    The Public Buildings Amendments of 1972 enable GSA to enter 
into contractual arrangements for the construction of a backlog 
of approved but unfunded projects. This activity provides for 
the payment of interest to the Federal Financing Bank related 
to facilities acquired pursuant to the Public Buildings 
Amendments of 1972 (40 U.S.C. 592).

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $155,781,000 for 
installment acquisition payments, the same as the budget 
request and $8,218,000 below the fiscal year 2007 funding 
level.

                            RENTAL OF SPACE

Limitation on availability, 2007........................  $4,067,881,000
Limitation on availability, 2008........................   4,383,000,000
House allowance.........................................   4,315,534,000
Committee recommendation................................   4,383,000,000

                          PROGRAM DESCRIPTION

    GSA is responsible for leasing general purpose space and 
land incident thereto for Federal agencies, except cases where 
GSA has delegated its leasing authority. GSA's policy is to 
lease privately owned buildings and land only when: (1) Federal 
space needs cannot be otherwise accommodated satisfactorily in 
existing Government-owned or leased space; (2) leasing proves 
to be more efficient than the construction or alteration of a 
Federal building; (3) construction or alteration is not 
warranted because requirements in the community are 
insufficient or are indefinite in scope or duration; or (4) 
completion of a new Federal building within a reasonable time 
cannot be assured.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $4,383,000,000 for 
rental of space. The Committee recommendation is the same as 
the President's budget request and $315,119,000 above the 
fiscal year 2007 enacted level.

                          BUILDING OPERATIONS

Limitation on availability, 2007........................  $2,003,830,000
Limitation on availability, 2008........................   2,132,450,000
House allowance.........................................   2,105,490,000
Committee recommendation................................   2,132,450,000

                          PROGRAM DESCRIPTION

    This activity provides for the operation of all Government-
owned facilities under the jurisdiction of GSA and building 
services in GSA-leased space where the terms of the lease do 
not require the lessor to furnish such services. Services 
included in building operations are cleaning, protection, 
maintenance, payments for utilities and fuel, grounds 
maintenance, and elevator operations. Other related supporting 
services include various real property management and staff 
support activities such as space acquisition and assignment; 
the moving of Federal agencies as a result of space alterations 
in order to provide better space utilization in existing 
buildings; onsite inspection of building services and 
operations accomplished by private contractors; and various 
highly specialized contract administration support functions.
    The space, operations, and services referred to above are 
furnished by GSA to its tenant agencies in return for payment 
of rent. Due to considerations unique to their operation, GSA 
also provides varying levels of above-standard services in 
agency headquarters facilities, including those occupied by the 
Executive Office of the President, such as the east and west 
wings of the White House.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $2,132,450,000 for 
building operations. This amount is the same as the President's 
budget request and $128,620,000 above the fiscal year 2007 
enacted level.
    Use of the Stairs.--The Committee supports the continued 
promotion of the use of stairs by the GSA. This program has 
considerable health benefits for the Government workforce and 
the general population at very small cost to the Government. 
GSA is urged to include signage outside of elevators and 
undertake efforts so that stair use in new construction will be 
increased.
    Use of the Dollar Coin.--The Presidential Coin Act of 2005 
(Public Law 109-145) provided for the removal of barriers to 
circulation of the $1 coin. The use of the coin in general 
circulation will provide significant savings in the manufacture 
of the money supply in the long-term and lower transaction 
costs. The Committee directs the General Services 
Administration to promote the use of the dollar coin in 
facilities under the GSA's control that provide change to 
customers including restaurants, cafeterias, stores, and 
vending machines.

                         GOVERNMENT-WIDE POLICY

                         salaries and expenses

Appropriations, 2007....................................     $52,346,000
Budget estimate, 2008...................................      54,791,000
House allowance.........................................           (\1\)
Committee recommendation................................      64,791,000

\1\House bill provides $134,945,000 for ``Policy and Operations'' to 
include both ``Government-wide Policy'' and ``Operating Expenses.''
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Office of Government-wide Policy provides for 
Government-wide policy development, support, and evaluation 
functions associated with real and personal property, supplies, 
vehicles, aircraft, information technology, acquisition, 
transportation and travel management. This office also provides 
for the Federal Procurement Data Center, Workplace Initiatives, 
Regulatory Information Service Center, the Catalog of Federal 
Domestic Assistance, and the Committee Management Secretariat. 
The Office of Government-wide Policy, working cooperatively 
with other agencies, provides the leadership needed to develop 
and evaluate the implementation of policies designed to achieve 
the most cost-effective solutions for the delivery of 
administrative services and sound workplace practices, while 
reducing regulations and empowering employees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $64,791,000 
for Government-wide Policy. This amount is $10,000,000 above 
the budget request and is an increase of $12,445,000 above the 
fiscal year 2007 level.
    The Committee notes that the General Services 
Administration has awarded five providers contracts under its 
NETWORX solicitation, allowing Federal departments and agencies 
to select their preferred provider of telecommunications 
services. The Committee believes that departments and agencies 
should carefully examine the contract vehicles and encourages 
GSA to work with OMB and the Office of Federal Procurement 
Policy to ensure that the Federal Government uses fair 
opportunity to secure both good value for the taxpayer and the 
benefits of advances in telecommunication technology.

                           OPERATING EXPENSES

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $83,176,000
Budget estimate, 2008...................................      89,547,000
House allowance.........................................           (\1\)
Committee recommendation................................      89,547,000

\1\House bill provides $134,945,000 for ``Policy and Operations'' to 
include both ``Government-wide Policy'' and ``Operating Expenses.''
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    Operating Expenses provides funding for Government-wide 
activities associated with the utilization and donation of 
surplus personal property; disposal of real property; 
telecommunications, information technology management, and 
related technology activities; agency-wide policy direction and 
management; ancillary accounting, records management, and other 
support services; services as authorized by 5 U.S.C. 3109; and 
other related operational expenses.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $89,547,000 
for the Operating Expenses. This amount is the same as the 
budget request and $6,371,000 above the fiscal year 2007 
enacted level.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2007....................................     $52,621,000
Budget estimate, 2008...................................      47,382,000
House allowance.........................................      53,382,000
Committee recommendation................................      52,682,000

                          PROGRAM DESCRIPTION

    This appropriation provides agency-wide audit and 
investigative functions to identify and correct management and 
administrative deficiencies within the General Services 
Administration [GSA], including conditions for existing or 
potential instances of fraud, waste and mismanagement. This 
audit function provides internal audit and contract audit 
services. Contract audits provide professional advice to GSA 
contracting officials on accounting and financial matters 
relative to the negotiation, award, administration, repricing, 
and settlement of contracts. Internal audits review and 
evaluate all facets of GSA operations and programs, test 
internal control systems, and develop information to improve 
operating efficiencies and enhance customer services. The 
investigative function provides for the detection and 
investigation of improper and illegal activities involving GSA 
programs, personnel, and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $52,682,000 
for the Office of Inspector General. This amount is $5,300,000 
more than the budget request and $61,000 above the fiscal year 
2007 enacted level. The fiscal year 2008 budget provides for up 
to $5,000,000 in reimbursable authority for pre-award audits 
and surveys with the understanding that the OIG and Federal 
Acquisition Service will work together to pilot alternative 
methods for reviewing contract-related activities.

                   ELECTRONIC GOVERNMENT [E-GOV] FUND

Appropriations, 2007....................................      $2,970,000
Budget estimate, 2008...................................       5,000,000
House allowance.........................................       2,970,000
Committee recommendation................................       5,000,000

                          PROGRAM DESCRIPTION

    This program supports interagency ``electronic government'' 
or ``e-gov'' initiatives, i.e., projects that use the Internet 
or other electronic methods to provide individuals, businesses, 
and other government agencies with simpler and more timely 
access to Federal information, benefits, services, and business 
opportunities.
    Proposals for funding must meet capital planning guidelines 
and include adequate documentation to demonstrate a sound 
business case, attention to security and privacy, and a way to 
measure performance against planned results. In addition, a 
small portion of the money could be used for awards to those 
project management teams that delivered the best product to 
meet customer needs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $5,000,000 for 
the Electronic Government Fund. This amount is $2,030,000 more 
than the fiscal year 2007 enacted level and the same as the 
budget request.

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2007....................................      $2,922,000
Budget estimate, 2008...................................       2,500,000
House allowance.........................................       2,500,000
Committee recommendation................................       2,500,000

                          PROGRAM DESCRIPTION

    This appropriation provides for an annual pension and 
compensation of office staffs and other related operating 
expenses for each former President pursuant to Public Law 85-
745, as amended. The annual pension for the widow of former 
President Johnson and costs of franking privileges for the 
widows of former President Johnson, former President Reagan and 
Former President Ford are also funded in this appropriation.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,500,000 for allowances and 
office staff for former Presidents, $422,000 below the fiscal 
year 2007 funding level and the same as the budget request. The 
amount provided reflects the decrease associated with the 
closure of former President Ford's office.
    Below is listed a detailed analysis of the Committee's 
recommendation for fiscal year 2008 funding:

                    FISCAL YEAR 2008 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                             Carter      Bush     Clinton     Widows     Total
----------------------------------------------------------------------------------------------------------------
Personnel Compensation...................................         96         96         96  .........        288
Personnel Benefits.......................................          2         64         65  .........        131
Benefits for Former Presidents...........................        191        191        201         20        603
Travel...................................................          2         56         50  .........        108
Rental Payments to GSA...................................        102        175        516  .........        793
Communications, Utilities and Miscellaneous charges:
    Telephone............................................         10         17         79  .........        106
    Postage..............................................         15         13         15         14         57
Printing.................................................          5         14         14  .........         33
Other Services...........................................         83         76         65  .........        224
Supplies and Materials...................................          5         15         26  .........         46
Equipment................................................          7         69         35  .........        111
                                                          ------------------------------------------------------
Total Obligations........................................        518        786      1,162         34      2,500
----------------------------------------------------------------------------------------------------------------

                FEDERAL CITIZEN INFORMATION CENTER FUND

Appropriations, 2007....................................     $14,874,000
Budget estimate, 2008...................................      17,790,000
House allowance.........................................      15,798,000
Committee recommendation................................      17,790,000

                          program description

    The Federal Citizen Information Center [FCIC] brings 
together an array of U.S. Government information and services 
and makes them accessible to the public. This information is 
made available on the Internet, via e-mail, in print, or over 
the telephone.
    Originally established within the General Services 
Administration [GSA] by Executive order on October 26, 1970, to 
help Federal departments and agencies promote and distribute 
printed consumer information, FCIC has evolved and consolidated 
a variety of complementary functions to augment the original 
print and media channels through which it informed the public.
    On January 28, 2000, the FCIC assumed responsibility for 
the operations of the Federal Information Center [FIC] program. 
The FIC program was established within the General Services 
Administration in 1966, and was formalized by Public Law 95-491 
in 1980. The program's purpose is to provide the public with 
direct information about all aspects of Federal programs, 
regulations, and services. To accomplish this mission, 
contractual services are used to respond to public inquiries 
via the nationwide toll-free National Contact Center.
    On June 30, 2002, FCIC assumed operational control of the 
FirstGov.gov website, the official portal of the U.S. 
Government, and became a critical part of GSA's newly 
established Office of Citizen Services and Communications. This 
Office brings together all of GSA's citizen-centered programs. 
The new Office serves as a central Federal gateway for 
citizens, businesses, other governments, and the media to 
easily obtain information and services from the Government. On 
March 31, 2003, FCIC began accepting e-mail and fax inquiries 
from the public through the FirstGov.gov website and responds 
to them at its National Contact Center. FirstGov.gov was 
recently renamed USA.gov.
    Public Law 98-63, enacted July 30, 1983, established a 
revolving fund for the FCIC. Under this fund, FCIC activities 
are financed from the following: annual appropriations from the 
general funds of the Treasury, reimbursements from agencies for 
distribution of publications and contact center services, user 
fees collected from the public, and any other income incident 
to FCIC activities. All are available as authorized in 
appropriation acts without regard to fiscal year limitations.

                        committee recommendation

    The Committee recommends $17,790,000 for the Federal 
Citizen Information Center, an increase of $2,916,000 above the 
fiscal year 2007 enacted level and equal to the budget request.
    The appropriation will be augmented by reimbursements from 
Federal agencies for distribution of consumer publications, 
user fees from the public, and other income.

       ADMINISTRATIVE PROVISIONS--GENERAL SERVICES ADMINISTRATION

    Section 510 authorizes GSA to credit accounts with certain 
funds received from Government corporations.
    Section 511 authorizes GSA to use funds for the hire of 
passenger motor vehicles.
    Section 512 authorizes GSA to transfer funds within the 
Federal buildings fund for meeting program requirements.
    Section 513 limits funding for courthouse construction 
which does not meet certain standards of a capital improvement 
plan.
    Section 514 provides that no funds may be used to increase 
the amount of occupiable square feet, provide cleaning 
services, security enhancements, or any other service usually 
provided, to any agency which does not pay the requested rate.
    Section 515 continues the provision that permits GSA to pay 
small claims (up to $250,000) made against the Government.
    Section 516 prohibits the use of funds by GSA to reorganize 
its organizational structure except through an operating plan 
change.

                     Merit Systems Protection Board

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2007....................................     $38,666,000
Budget estimate, 2008...................................      40,086,000
House allowance.........................................      40,086,000
Committee recommendation................................      40,086,000

                          PROGRAM DESCRIPTION

    The Merit Systems Protection Board [MSPB] was established 
by the Civil Service Reform Act of 1978. MSPB is an independent 
quasi-judicial agency manifested to protect Federal merit 
systems against partisan political and other prohibited 
personnel practices and to ensure adequate protection for 
employees against abuses by agency management.
    MSPB assists Federal agencies in running a merit-based 
civil service system. This is accomplished on a case-by-case 
basis through hearing and deciding employee appeals, and on a 
systemic basis by reviewing significant actions and regulations 
of the Office of Personnel Management [OPM] and conducting 
studies of the civil service and other merit systems. The 
intended results of MSPB's efforts are to assure that personnel 
actions taken against employees are processed within the law, 
and that actions taken by OPM and other agencies support and 
enhance Federal merit principles.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $37,507,000 
for the Merit Systems Protection Board. This is an increase of 
$1,444,000 above the fiscal year 2007 enacted level and the 
same as the budget request. The Committee makes available no 
more than $2,579,000 for adjudicated appeals through an 
appropriation from the trust fund consistent with past 
practice, allowing for appropriate funding for MSPB to continue 
as arbitrator for the additional appeals cases from the 
Department of Defense and the Department of Homeland Security.

 Morris K. Udall Scholarship and Excellence in National Environmental 
                           Policy Foundation

   FEDERAL PAYMENT TO MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN 
                NATIONAL ENVIRONMENTAL POLICY FOUNDATION

Appropriations, 2007....................................      $1,984,000
Budget estimate, 2008...................................................
House allowance.........................................       2,000,000
Committee recommendation................................       3,750,000

                          PROGRAM DESCRIPTION

    Public Law 106-568 authorized the Morris K. Udall 
Foundation to establish training programs for professionals in 
health care policy and public policy, such as the Native 
Nations Institute [NNI]. NNI, based at the University of 
Arizona, will provide Native Americans with leadership and 
management training and analyze policies relevant to tribes.
    The General Fund payment to the Morris K. Udall Fund is 
invested in Treasury securities with maturities suitable to the 
needs of the Fund. Interest earnings from the investments are 
used to carry out the activities of the Morris K. Udall 
Foundation. The Foundation awards scholarships, fellowships and 
grants, and funds activities of the Udall Center.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,750,000 for 
the Morris K. Udall Foundation. There was no budget request and 
the fiscal year 2007 amount was $1,984,000. The Committee 
includes language to allow up to 60 percent of the 
appropriation to be used for the expenses of the Native Nations 
Institute.

                 ENVIRONMENTAL DISPUTE RESOLUTION FUND

Appropriations, 2007....................................      $1,896,000
Budget estimate, 2008...................................         750,000
House allowance.........................................       2,000,000
Committee recommendation................................       2,000,000

                          PROGRAM DESCRIPTION

    The U.S. Institute for Environmental Conflict Resolution is 
a Federal program established by Public Law 105-156 to assist 
parties in resolving environmental, natural resource, and 
public lands conflicts. The Institute is part of the Morris K. 
Udall Foundation, and serves as an impartial, non-partisan 
institution providing professional expertise, services, and 
resources to all parties involved in such disputes. The 
Institute helps parties determine whether collaborative problem 
solving is appropriate for specific environmental conflicts, 
how and when to bring all the parties together for discussion, 
and whether a third-party facilitator or mediator might be 
helpful in assisting the parties in their efforts to reach 
consensus or to resolve the conflict. In addition, the 
Institute maintains a roster of qualified facilitators and 
mediators with substantial experience in environmental conflict 
resolution, and can help parties in selecting an appropriate 
neutral professional.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,000,000 for 
the Morris K. Udall Environmental Dispute Resolution Fund. This 
amount is $104,000 above the fiscal year 2007 enacted level and 
$1,250,000 above the budget request.

              National Archives and Records Administration

    The National Archives and Records Administration [NARA] is 
the national recordkeeper. NARA is an independent agency 
created by statute in 1934 to safeguard the records of all 
three branches of the Federal Government. NARA administers the 
Information Security Oversight Office [ISOO], is the publisher 
of the Federal Register and makes grants for historical 
documentation through the National Historical Publications and 
Records Commission [NHPRC].

                           OPERATING EXPENSES

Appropriations, 2007....................................    $279,338,000
Budget estimate, 2008...................................     312,874,000
House allowance.........................................     315,000,000
Committee recommendation................................     313,911,000

                          PROGRAM DESCRIPTION

    This account provides for basic operations dealing with 
management of the Federal Government's archives and records, 
operation of Presidential Libraries, and for the review for 
declassification of classified security information.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $313,911,000 for operating 
expenses of the National Archives and Records Administration 
for fiscal year 2008. This amount is $34,573,000 above the 
fiscal year 2007 funding level and $1,037,000 above the budget 
request.
    The Committee's recommendation includes additional funds to 
maintain current service levels, to support the Public Interest 
Declassification Board, to prepare for the new George W. Bush 
Presidential Library, to relocate the Southwest and Central 
Plains Regional Archives facilities, operate the Nixon 
Presidential Library, and to provide IG oversight of the ERA 
program.
    The Committee is aware that the Abraham Lincoln 
Presidential Library and Museum [ALPLM] opened in April 2005. 
It has attracted more than 1 million visitors from around the 
world, the fastest attendance pace of any Presidential library. 
The Committee encourages NARA and the ALPLM to work together to 
advance the legacy of Abraham Lincoln in preparation for the 
16th President's bicentennial celebration.
    The Committee is aware of discussions between NARA and the 
Woodrow Wilson Presidential Library and encourages NARA to 
explore mutual benefits of a partnership with the Woodrow 
Wilson Presidential Library to identify, gather, sort, 
catalogue, and digitize materials related to the history of 
Woodrow Wilson.
    The Committee is concerned that the Information Security 
Oversight Office has experienced prolonged difficulty in 
securing cooperation and compliance by the Office of the Vice 
President with the requirements of Executive Order 12958 
governing the handling of national security information. The 
Committee directs the ISOO to notify the Committees on 
Appropriations of the Senate and House of Representatives on a 
quarterly basis concerning efforts taken and the responses 
obtained to address the failure or refusal of any agencies and 
entities in the executive branch that come into the possession 
of classified information to comply with directives of the 
ISOO.

                      ELECTRONIC RECORDS ARCHIVES

Appropriations, 2007....................................     $45,254,000
Budget estimate, 2008...................................      58,028,000
House allowance.........................................      58,028,000
Committee recommendation................................      58,028,000

                          PROGRAM DESCRIPTION

    National Archives and Records Administration [NARA] is 
developing an Electronic Records Archives [ERA] that will 
ensure the preservation of and access to Government electronic 
records. With the rapid changes in technology today, the 
formats in which records are stored become obsolete within a 
few years, making records inaccessible even if they are 
preserved intact with the most modern technology. ERA will 
preserve electronic records generated in a manner that enables 
requesters to access them on computer systems now and in the 
future.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $58,028,000 for the Electronics 
Records Archives project. This amount is an increase of 
$12,774,000 above the fiscal year 2007 enacted level and the 
same as the budget request. Bill language is included requiring 
NARA to submit a spending plan for these funds.
    The Committee strongly supports the Electronic Record 
Archives [ERA] program at the National Archives Records 
Administration. The Committee continues to emphasize the 
importance that amounts requested in the President's budget be 
adequate to meet current program requirements for the 
development of systems to interface with agencies, receive all 
documents, and conduct all necessary training programs. The 
Committee remains committed to working to ensure that this 
program is adequately funded on an expedited basis so ERA can 
preserve the Nation's important records at the earliest 
feasible date.
    However, the Committee is disappointed to learn that the 
contractor for the ERA project has stated that it will not be 
able to meet the September 2007 scheduled date for delivering 
Initial Operating Capacity due to poor design flaws and poor 
management of software development processes. This 
functionality would allow NARA and selected agencies to enter 
record schedules into the system, accept electronic records 
from NARA's legacy systems and agencies, and verify the 
location of the records. It appears that only the ability to 
enter record schedules into the system will meet the September 
2007 deadline. The Committee is further concerned to learn that 
the cost overrun has now grown to about $1,000,000. The 
Committee does not expect this delay to affect the ability to 
take in and manage the electronic records from the White House 
in 2009 and urges the contractor and NARA to redouble efforts 
to get this project back on track in order to meet the 2009 
deadline. The Committee is appreciative of GAO's involvement in 
this project. The Committee directs NARA to work expeditiously 
with the contractor and, within 45 days of enactment, agree on 
an action plan for moving forward on the ERA acquisition. This 
plan should address management and implementation weaknesses in 
the project to date; recognize the need for delivery of a 
usable component of the system at the initial operating 
capability milestone; and minimize the cost impact on the 
government.

                        REPAIRS AND RESTORATION

Appropriations, 2007....................................      $9,120,000
Budget estimate, 2008...................................       8,663,000
House allowance.........................................      16,095,000
Committee recommendation................................      25,173,000

                          PROGRAM DESCRIPTION

    This account provides for the repair, alteration, and 
improvement of Archives facilities and Presidential libraries 
nationwide, and provides adequate storage for holdings. It will 
better enable NARA to maintain its facilities in proper 
condition for public visitors, researchers, and NARA employees, 
and also maintain the structural integrity of the buildings.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $25,173,000 for the repairs and 
restoration account. This amount is $16,053,000 above the 
fiscal year 2007 enacted level and $16,510,000 above the budget 
request.
    The Committee provides $9,663,000 for ongoing repairs and 
restoration and recommends specific funding to be distributed 
as follows:

------------------------------------------------------------------------
                                    Committee
                                 recommendation        Requested by
------------------------------------------------------------------------
LBJ Presidential Library.......      $3,760,000  Hutchison
FDR Presidential Library.......         750,000  Clinton, Schumer, Reid
JFK Presidential Library.......       8,000,000  Kerry
Nixon Presidential Library.....       1,000,000  Cochran
Anchorage Regional Archives and       2,000,000  Stevens
 Records Center.
------------------------------------------------------------------------

    The Committee has prioritized funding under this account 
with input from NARA's capital improvement plan and projects 
already underway. Therefore, the Committee has included 
$3,760,000 to complete renovations for the Lyndon Baines 
Johnson [LBJ] Presidential Library, $8,000,000 for land 
acquisition and site preparation for the JFK Presidential 
Library, $750,000 to complete design of the FDR Presidential 
Library, $1,000,000 for the expansion of the Richard Nixon 
Presidential Library and $2,000,000 for the Anchorage Regional 
Archives and Records Center. The Committee looks forward to 
seeing resources dedicated for the remainder of the funding 
needed for the Nixon Library in the fiscal year 2009 budget 
request. The Committee directs NARA to update its comprehensive 
capital needs assessment for its entire infrastructure of 
Presidential libraries and records facilities, as part of its 
fiscal year 2009 budget submission and urges that an 
appropriate level of funding for these facilities be included 
in the fiscal year 2009 budget submission and urges that an 
appropriate level of funding be included in the fiscal year 
2009 budget submission.
    The Committee recognizes the need for a new, built-to-suit, 
archives facility to replace rented space currently housing the 
National Archives and Records Administration--Pacific Region 
facility in Laguna Niguel, California. The Committee 
understands that the Orange County Great Park has offered a 
parcel of land to NARA in the planned museum district on the 
former El Toro Marine Corps Air Station for a new facility, to 
encompass the regional archives as well as exhibit space and 
public vaults. The Committee encourages NARA to continue 
discussions with the Great Park Corporation Board and looks 
forward to seeing resources dedicated for this purpose in the 
fiscal year 2009 budget.

        National Historical Publications and Records Commission

                             GRANTS PROGRAM

Appropriations, 2007....................................      $7,425,000
Budget estimate, 2008...................................................
House allowance.........................................      10,000,000
Committee recommendation................................      10,000,000

                          PROGRAM DESCRIPTION

    The National Historical Publications and Records Commission 
[NHPRC] provides grants nationwide to preserve and publish 
records that document American history. Administered within the 
National Archives, which preserves Federal records, NHPRC helps 
State, local, and private institutions preserve non-Federal 
records, helps publish the papers of major figures in American 
history, and helps archivists and records managers improve 
their techniques, training, and ability to serve a range of 
information users.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $10,000,000 for the National 
Historical Publications and Records Commission [NHPRC]. This 
amount is $2,575,000 above the fiscal year 2007 enacted level 
and $10,000,000 above the budget request.
    The Committee strongly supports the NHPRC program and has 
provided funding to continue this important program. This 
program has played a central role in the preservation and 
dissemination of the Nation's documentary heritage. Further, 
the program has been successful in leveraging private sector 
contributions.

                        ADMINISTRATIVE PROVISION

    The Committee includes an administrative provision 
directing NARA to include in its fiscal year 2009 budget 
justifications a comprehensive capital needs assessment for its 
entire infrastructure of presidential libraries and records 
facilities. Funding should be included in the fiscal year 2009 
budget to address the highest priorities, including projects 
already underway.

                  National Credit Union Administration

                       central liquidity facility

------------------------------------------------------------------------
                                       Direct loan       Administrative
                                        limitation          expenses
------------------------------------------------------------------------
Appropriations, 2007..............     $1,500,000,000           $323,000
Budget estimate, 2008.............      1,500,000,000            329,000
House allowance...................      1,500,000,000            329,000
Committee recommendation..........      1,500,000,000            329,000
------------------------------------------------------------------------

                          program description

    The National Credit Union Administration [NCUA] Central 
Liquidity Facility [CLF] was created by the National Credit 
Union Central Liquidity Facility Act (Public Law 95-630). The 
CLF is a mixed-ownership Government corporation managed by the 
National Credit Union Administration Board and owned by its 
member credit unions.
    The purpose of the CLF is to improve the general financial 
stability of credit unions by meeting their seasonal and 
emergency liquidity needs and thereby encourage savings, 
support consumer and mortgage lending, and provide basic 
financial resources to all segments of the economy. To become 
eligible for CLF services, credit unions invest in the capital 
stock of the CLF, and the facility uses the proceeds of such 
investments and the proceeds of borrowed funds to meet the 
liquidity needs of credit unions. The primary sources of funds 
for the CLF are stock subscriptions from credit unions and 
borrowings.
    The CLF may borrow funds from any source, with the amount 
of borrowing limited to 12 times the amount of subscribed 
capital stock and surplus.
    Loans are available to meet short-term requirements for 
funds attributable to emergency outflows from managerial 
difficulties or local economic downturns. Seasonal credit is 
also provided to accommodate fluctuations caused by cyclical 
changes in such areas as agriculture, education, and retail 
business. Loans can also be made to offset protracted credit 
problems caused by factors such as regional economic decline.

                        committee recommendation

    The Committee recommends the budget request of limiting 
administrative expenses for the Central Liquidity Fund [CLF] to 
$329,000 in fiscal year 2008. The Committee recommends a 
limitation of $1,500,000,000 for the principal amount of new 
direct loans to member credit unions. These amounts are the 
same as the budget request.

               COMMUNITY DEVELOPMENT REVOLVING LOAN FUND

Appropriations, 2007....................................        $941,000
Budget estimate, 2008...................................         950,000
House allowance.........................................       1,000,000
Committee recommendation................................         950,000

                          PROGRAM DESCRIPTION

    The Community Development Revolving Loan Fund Program 
[CDRLF] was established in 1979 to assist officially designated 
``low-income'' credit unions in providing basic financial 
services to low-income communities. Low-interest loans and 
deposits are made available to assist these credit unions. 
Loans or deposits are normally repaid in 5 years, although 
shorter repayment periods may be considered. Technical 
assistance grants [TAGs] are also available to low-income 
credit unions. Until fiscal year 2001, only earnings generated 
from the CDRLF were available to fund TAGs. Grants are 
available for improving operations as well as addressing safety 
and soundness issues. In fiscal year 2004, NCUA designated 
funds for specific programs, including taxpayer assistance, 
financial education, home ownership initiatives, remittance 
services, individual development accounts [IDAs], and training 
assistance.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $950,000 for technical assistance 
grants to community development credit unions. This funding 
level is equal to the budget request and is $9,000 more than 
the 2007 enacted level. The Committee expects the CDRLF to 
continue making loans from their available funds derived from 
repaid loans and interest earned on previous loans to 
designated credit unions.
    The Committee supports NCUA's outreach efforts to 
underserved rural and urban communities across America through 
technical assistance grants provided within CDRLF. The 
Committee encourages NCUA to continue their efforts in 
providing an alternative to predatory lending services through 
their targeted technical assistance grants and support.

                      Office of Government Ethics

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $11,115,000
Budget estimate, 2008...................................      11,750,000
House allowance.........................................      11,750,000
Committee recommendation................................      11,750,000

                          PROGRAM DESCRIPTION

    The Office of Government Ethics [OGE], a separate agency 
within the executive branch, was established by the Ethics in 
Government Act of 1978. OGE is charged by law to provide 
overall direction of executive branch policies designed to 
prevent conflicts of interest and ensure high ethical 
standards. OGE carries out these responsibilities by developing 
regulations pertaining to conflicts of interest, postemployment 
restrictions, standards of conduct, and public and confidential 
financial disclosure in the executive branch; by monitoring 
compliance with financial disclosure requirements by 
recommending appropriate corrective action when necessary; by 
evaluating the effectiveness of applicable laws; and by 
preparing advisory opinions and policy memoranda interpreting 
requirements regarding conflicts of interest, post employment 
restrictions, standards of conduct, and financial disclosure.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $11,750,000 
for salaries and expenses of the Office of Government Ethics in 
fiscal year 2008. This amount is the same as the budget request 
and $635,000 above the fiscal year 2007 level. The Committee 
encourages OGE to alert the Committee to emerging needs 
resulting from enactment of any new legislation affecting 
ethics obligations of executive branch officials and employees, 
as well as initiatives undertaken to fulfill OGE's critical 
role in Presidential transition issues, including education on 
post-employment restrictions for outgoing officials and 
processing the expected surge of public financial disclosure 
reports of incoming officials.

                     Office of Personnel Management

                         SALARIES AND EXPENSES

Appropriations, 2007....................................    $111,605,000
Budget estimate, 2008...................................     101,765,000
House allowance.........................................     101,765,000
Committee recommendation................................     101,765,000

                          PROGRAM DESCRIPTION

    The Office of Personnel Management [OPM] was established by 
Public Law 95-454, the Civil Service Reform Act of 1978, 
enacted on October 13, 1978. In that act, the Office of 
Personnel Management was established in section 1101 of title 
5, United States Code. Subsequent sections of chapter 11 
provide for the principal officials of the agency and the 
functions of the Director, which are really the functions of 
the Agency, as well as providing for the delegation of 
authority for personnel management from the President and, 
subsequently, by the Director.
    OPM is the Federal Government agency responsible for 
management of Federal human resources policy and oversight of 
the merit civil service system. Although individual agencies 
are increasingly responsible for personnel operations, OPM 
provides a Governmentwide policy framework for personnel 
matters, advises and assists agencies (often on a reimbursable 
basis), and ensures that agency operations are consistent with 
requirements of law on issues such as veterans preference. OPM 
oversees examining of applicants for employment, issues 
regulations and policies on hiring, classification and pay, 
training, investigations, other aspects of personnel 
management, and operates a reimbursable training program for 
the Federal Government's managers and executives. OPM is also 
responsible for administering the retirement, health benefits 
and life insurance programs affecting most Federal employees, 
retired Federal employees, and their survivors.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a general fund appropriation of 
$101,765,000 for the salaries and expenses of the Office of 
Personnel Management, which is $9,840,000 less than the fiscal 
year 2007 level and the same as the budget request.
    The recommendation includes $5,991,000 for the Enterprise 
Human Resources Integration project, $1,351,000 for the Human 
Resources Line of Business project, $340,000 for the E-Payroll 
project, and $170,000 for the E-Training program.
    The Committee is concerned with the Office of Personnel 
Management's approach to human resources products and services. 
Federal agencies need to have the flexibility to contract as 
they see fit, including contracting with the private sector to 
provide online employment applications and processing services, 
as well as choice in selecting service providers and human 
resource systems. While the Committee understands the need for 
standards in public and private human resources contracts, the 
Committee expects OPM to allow Federal agencies to have choices 
in such decisions. The Committee directs OPM to report to the 
Committee no later than 120 days after enactment of this act, 
on its human resources products and services, including actions 
taken in response to these concerns, and indicating which 
products and services OPM has identified as not reasonably 
available from private sector providers. Furthermore, the 
Committee directs the Office of Management and Budget to report 
no later than 120 days after enactment of this act, on how the 
human resources products and services that OPM provides to 
Federal agencies meet established standards, and on the demon-
strable steps OPM has taken to avoid any potential conflicts 
between OPM's role as a human resources IT products and 
services provider and its role as the designated lead agency of 
the Human Resources Line of Business.
    Child Care.--The Committee directs OPM to work with and 
through the Chief Human Capital Officers Council to: (1) 
encourage agencies to review their agency-specific results of 
OPM's dependent care survey and assess their unique current and 
future dependent care needs; (2) identify agencies that need 
guidance and assistance with a review of their agency-specific 
survey results and assessment of their unique dependent care 
needs. When assessing whether current Federal dependent care 
programs meet the needs of their employees, agencies should 
consider conditions and circumstances unique to their agency 
and employees, such as the age and income of their workforce 
and geographic distribution of employees; (3) encourage 
agencies and assist them with a review of the workplace 
flexibilities they offer and a determination of whether such 
flexibilities best balance the needs of employees with agency 
mission requirements. The agencies should also determine 
whether opportunities exist to use flexible work options to 
address any recruitment and retention challenges; and (4) use 
the dependent care survey results to determine the most 
effective ways to inform and educate agencies and employees 
about Federal dependent care programs that are available and 
ensure agencies are using these methods.
    FPRAC.--The Committee has been concerned with the lengthy 
delay by the Office of Personnel Management in appointing a 
Chair to the Federal Prevailing Rate Advisory Committee 
[FPRAC]. This vacancy has left the FPRAC unable to make 
decisions affecting the Federal Wage System [FWS], which is 
harming hard-working blue collar Federal workers. In 
particular, the Committee is aware that FPRAC has failed to 
consider the merging of the Narragansett Bay wage area with the 
Boston wage area, which was originally placed on the FPRAC's 
agenda on May 20, 2004. Federal employees within the 
Narragansett Bay wage area, who are paid under one of the 
lowest FWS pay scales while residing in an area with one of the 
highest costs of living, have waited 3 years for the FPRAC to 
address their concerns. Disparities between Narragansett Bay 
area wages and those in proximate wage areas raise questions 
about the equity of the Federal wage pay scales in the region. 
The Committee directs that the immediate order of business of 
the FPRAC shall be to address the Narragansett Bay wage area.
    Retirement System Modernization.--The Committee supports 
the Retirement Systems Modernization project, an effort 
initiated in 1997 to automate and streamline the manual and 
paper-intensive business processes used to administer the 
Federal employee retirement program. With 60 percent of the 
Federal workforce eligible for retirement within 10 years, it 
is crucial that there is an efficient and effective system in 
place for current and future retirees. The Committee 
understands that the project will be phased in five waves due 
to the volume of retirement records. The RSM project is 
entering a stage where management, integration, evaluation, and 
testing are of critical importance due to the February 2008 
date of commencing operation. The Committee encourages OPM to 
continue to work cooperatively with GAO to minimize potential 
risks and project delays.

                               limitation

                       (TRANSFER OF TRUST FUNDS)

Limitation, 2007........................................    $112,546,000
Budget estimate, 2008...................................     111,936,000
House allowance.........................................     123,401,000
Committee recommendation................................     124,401,000

                          PROGRAM DESCRIPTION

    These funds will be transferred from the appropriate trust 
funds of the Office of Personnel Management to cover 
administrative expenses for the retirement and insurance 
programs, including the cost of automating the retirement 
recording systems.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $124,401,000, 
which is $11,855,000 over the fiscal year 2007 level and 
$12,465,000 more than the budget request. The amount includes 
$27,465,000 for retirement systems modernization, an increase 
of $12,465,000 over the request.

                      OFFICE OF INSPECTOR GENERAL

                         salaries and expenses

Appropriations, 2007....................................      $2,061,000
Budget estimate, 2008...................................       1,519,000
House allowance.........................................       1,519,000
Committee recommendation................................       1,519,000

                          PROGRAM DESCRIPTION

    The Office of Inspector General is charged with 
establishing policies for conducting and coordinating efforts 
which promote economy, efficiency, and integrity in the Office 
of Personnel Management's activities which prevent and detect 
fraud, waste, and mismanagement in the agency's programs. 
Contract audits provide professional advice to agency 
contracting officials on accounting and financial matters 
regarding the negotiation, award, administration, repricing, 
and settlement of contracts. Internal agency audits review and 
evaluate all facets of agency operations, including financial 
statements. Evaluation and inspection services provide detailed 
technical evaluations of agency operations. Insurance audits 
review the operations of health and life insurance carriers, 
health care providers, and insurance subscribers. The 
investigative function provides for the detection and 
investigation of improper and illegal activities involving 
programs, personnel, and operations. Administrative sanctions 
debar from participation in the health insurance program those 
health care providers whose conduct may pose a threat to the 
financial integrity of the program itself or to the well-being 
of insurance program enrollees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,519,000 for 
salaries and expenses of the Office of Inspector General in 
fiscal year 2008. This amount is $542,000 less than the fiscal 
year 2007 enacted level and the same as the budget request.

               (LIMITATION ON TRANSFER FROM TRUST FUNDS)

Limitation, 2007........................................     $16,278,000
Budget estimate, 2008...................................      16,481,000
House allowance.........................................      16,981,000
Committee recommendation................................      17,081,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation on transfers from the 
trust funds in support of the Office of Inspector General 
activities totaling $17,081,000 for fiscal year 2008. This 
amount is $803,000 more than the fiscal year 2007 enacted 
level, and $600,000 above the budget request. The increased 
funds will help restore the OIG's budget to previous levels.

      government payment for annuitants, employees health benefits

Appropriations, 2007....................................  $8,780,260,000
Budget estimate, 2008...................................   8,884,000,000
House allowance.........................................   8,884,000,000
Committee recommendation................................   8,884,000,000

                          PROGRAM DESCRIPTION

    This appropriation covers the Government's share of the 
cost of health insurance for annuitants covered by the Federal 
Employees Health Benefits Program and the Retired Federal 
Employees Health Benefits Act of 1960, as well as 
administrative expenses incurred by OPM for these programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a mandatory appropriation of 
$8,884,000,000 for Government payments for annuitants, 
employees health benefits.

       government payment for annuitants, employee life insurance

Appropriations, 2007....................................     $39,000,000
Budget estimate, 2008...................................      41,000,000
House allowance.........................................      41,000,000
Committee recommendation................................      41,000,000

                          PROGRAM DESCRIPTION

    Public Law 96-427, the Federal Employees' Group Life 
Insurance Act of 1980 requires that all employees under the age 
of 65 who separate from the Federal Government for purposes of 
retirement on or after January 1, 1990, continue to make 
contributions toward their basic life insurance coverage after 
retirement until they reach the age of 65. These retirees will 
contribute two-thirds of the cost of the basic life insurance 
premium, identical to the amount contributed by active Federal 
employees for basic life insurance coverage. As with the active 
Federal employees, the Government is required to contribute 
one-third of the cost of the premium for retirees' basic 
coverage. OPM, acting as the payroll office on behalf of 
Federal retirees, has requested, and the Committee has 
provided, the funding necessary to make the required Government 
contribution associated with annuitants' post-retirement life 
insurance coverage.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a mandatory appropriation of 
$41,000,000 for the Government payment for annuitants, employee 
life insurance.

        payment to civil service retirement and disability fund

Appropriations, 2007.................................... $10,532,000,000
Budget estimate, 2008...................................  11,941,000,000
House allowance.........................................  11,941,000,000
Committee recommendation................................  11,941,000,000

                          PROGRAM DESCRIPTION

    The civil service retirement and disability fund was 
established in 1920 to administer the financing and payment of 
annuities to retired Federal employees and their survivors. The 
fund covers the operation of the Civil Service Retirement 
System and the Federal Employees' Retirement System.
    This appropriation provides for the Government's share of 
retirement costs, transfers of interest on the unfunded 
liability and annuity disbursements attributable to military 
service, and survivor annuities to eligible former spouses of 
some annuitants who did not elect survivor coverage.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a mandatory appropriation of 
$11,941,000,000 for payment to the civil service retirement and 
disability fund.

                       Office of Special Counsel

                         salaries and expenses

Appropriations, 2007....................................     $15,524,000
Budget estimate, 2008...................................      16,368,000
House allowance.........................................      16,368,000
Committee recommendation................................      16,368,000

                          PROGRAM DESCRIPTION

    The U.S. Office of Special Counsel [OSC] was first 
established on January 1, 1979. From 1979 until 1989, it 
operated as an autonomous investigative and prosecutorial arm 
of the Merit Systems Protection Board (the Board). In 1989, 
Congress enacted the Whistleblower Protection Act, which made 
OSC an independent agency within the executive branch. In 1994, 
the Uniformed Services Employment and Reemployment Rights Act 
became law. It defined employment-related rights of persons in 
connection with military service, prohibited discrimination 
against them because of that service, and gave OSC new 
authority to pursue remedies for violations by Federal 
agencies.
    OSC investigates Federal employee allegations of prohibited 
personnel practices with an emphasis on protecting Federal 
Government whistleblowers, and, when appropriate, prosecutes 
cases before the Merit Systems Protection Board and enforces 
the Hatch Act. OSC also provides a channel for whistleblowing 
by Federal employees, and may transmit allegations of reprisal 
to whistleblowing to the agency head concerned and require an 
agency investigation and a report to Congress and the President 
when appropriate.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $16,368,000 
for the Office of Special Counsel. This amount is the same as 
the budget request and is $844,000 above the fiscal year 2007 
enacted level.
    The Committee is encouraged by OSC's sustained effort to 
reduce a chronic backlog of cases and expedite case processing. 
However, the Committee strongly urges the OSC to work with 
whistleblower advocacy organizations to promote the highest 
level of confidence in the Whistleblower Protection Act and the 
OSC. The Committee acknowledges that OSC continues to 
experience growth in its caseload, as a result of heightened 
awareness of the Hatch Act stemming from media focus on several 
high-profile cases, a more vigorous focus on complaints under 
the Uniformed Services Employment and Reemployment Rights Act, 
and actions under the Whistleblower Protection Act. The 
Committee urges the OSC to evaluate the need for additional 
resources to handle recently initiated investigations, and if 
additional funds are necessary to conduct these investigations, 
pursue with the Office of Management and Budget a budget 
amendment to formally request the funds.
    The Committee further directs OSC to communicate with the 
Committee 45 days in advance of any organizational change, if 
such a change would cause the geographic staffing numbers to 
vary above or below the following levels: Office of Special 
Counsel headquarters: 70 to 75 FTEs, the Midwest field office: 
6 to 8 FTEs, the Dallas field office: 9 to 11 FTEs, the Oakland 
field office: 8 to 10 FTEs, and the District of Columbia field 
office: 9 to 12 FTEs. Thus the total number of FTEs for the 
Office of Special Counsel should not be below 102 or above 116.

                   Securities and Exchange Commission

                         SALARIES AND EXPENSES

Appropriations, 2007....................................    $892,560,000
Budget estimate, 2008...................................     905,330,000
House allowance.........................................     908,442,000
Committee recommendation................................     905,330,000

                          PROGRAM DESCRIPTION

    The Securities and Exchange Commission [SEC] is an 
independent agency responsible for administering many of the 
Nation's laws regulating the areas of securities and finance.
    The mission of the SEC is to administer and enforce Federal 
securities laws in order to protect investors and to maintain 
fair, honest, and efficient markets. This includes ensuring 
full disclosure of financial information, regulating the 
Nation's securities markets, and preventing and policing fraud 
and malpractice in the securities and financial markets. The 
strength of the American economy and our Nation's financial 
markets is dependent upon investors' confidence in the 
financial disclosures and statements released by publicly 
traded companies.
    The Committee is concerned that American investors may be 
unwittingly investing in companies with ties to countries that 
sponsor terrorism or are linked to human rights violations. The 
Committee believes that a company's association with sponsors 
of terrorism and human rights abuses, no matter how large or 
small, can have a materially adverse result on a public 
company's operations, financial condition, earnings, and stock 
prices, all of which can negatively affect the value of an 
investment. In order to protect American investors' savings and 
to disclose these business relationships to investors, an 
Office of Global Security Risk was established within the 
Division of Corporation Finance. The Committee expects the work 
of the Office to remain a high priority during fiscal year 2008 
and directs the SEC to continue to submit quarterly reports on 
its activities.
    The Committee expects the SEC to implement key controls to 
effectively safeguard the confidentiality, integrity, and 
availability of its financial and sensitive information and 
systems.
    The Committee encourages the SEC to continue its efforts to 
improve the timeliness of disbursement of funds to investors 
victimized by securities fraud, including the establishment of 
a specialized office devoted to ensuring that funds are 
promptly disbursed and installation of a new computer system to 
simplify the tracking, collection, and distribution of assessed 
penalties.
    The Committee also urges the SEC to pursue plans to 
simplify information and improve electronic access to 
investment information through interactive data systems.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total budget (obligational) 
authority of $905,330,000 for the salaries and expenses of the 
SEC, including $863,933,000 from new fee collections and 
$41,397,000 from prior year balances. This total funding level 
is the same as the budget request and $12,770,000 above the 
fiscal year 2007 enacted level.

                        Selective Service System

                         SALARIES AND EXPENSES

Appropriations, 2007....................................     $24,850,000
Budget estimate, 2008...................................      22,000,000
House allowance.........................................      22,000,000
Committee recommendation................................      22,000,000

                          PROGRAM DESCRIPTION

    The Selective Service System [SSS] is an independent 
Federal agency, operating with permanent authorization under 
the Military Selective Service Act (50 U.S.C. App. 451 et 
seq.). The agency is not part of the Department of Defense 
[DOD], but its basic mission is to be prepared to supply 
manpower to the Armed Forces adequate to ensure the security of 
the United States during a time of national emergency. Since 
1973, the Armed Forces have relied on volunteers to fill 
military manpower requirements. However, the Selective Service 
System remains the primary vehicle by which personnel will be 
brought into the military if Congress and the President should 
authorize a return to the draft.
    In December 1987, Selective Service was tasked by law 
(Public Law 100-180, sec. 715) to develop plans for a post-
mobilization health care personnel delivery system capable of 
providing the necessary critically skilled healthcare personnel 
to the Armed Forces in time of emergency. An automated system 
capable of handling mass registration and inductions is now 
complete, together with necessary draft legislation, a draft 
Presidential proclamation, prototype forms and letters, and 
other products. These products will be available should the 
need arise. The development of supplemental standby products, 
such as a compliance system for health care personnel, 
continues using very limited existing resources.

                        committee recommendation

    The Committee recommends an appropriation of $22,000,000 
for the Selective Service System. This amount is the same as 
the budget request and $2,850,000 below the fiscal year 2007 
enacted level. The Committee encourages the system to continue 
the development of its Central Registrant Processing Portal 
Initiative, and to improve the cost effectiveness of the 
registration process by continuing to increase the percentage 
of electronic and automatic registrations.

                     Small Business Administration

Appropriations, 2007....................................    $571,927,000
Budget estimate, 2008...................................     463,517,000
House allowance.........................................     582,497,000
Committee recommendation................................     567,517,000

    The Committee recommendation provides $567,517,000 for the 
Small Business Administration [SBA]. The recommendation is 
$4,410,000 below the fiscal year 2007 enacted level and 
$104,000,000 over the budget request. Funding is distributed 
among the SBA appropriation accounts as described below.

                         SALARIES AND EXPENSES

Appropriations, 2007....................................    $327,592,000
Budget estimate, 2008...................................     310,103,000
House allowance.........................................     346,553,000
Committee recommendation................................     412,103,000

    The Committee recommendation provides $412,103,000. The 
recommendation is $84,511,000 above the fiscal year 2007 
enacted level and $102,000,000 above the budget request.
    Within the amounts made available under this heading, the 
Committee recommends grants for the following organizations and 
programs:

------------------------------------------------------------------------
 State       Description           Amount             Requested by
------------------------------------------------------------------------
    AL Mitchell College of         $300,000  Shelby
        Business, Business
        Library and Career
        Resource Center
    AL Alabama                      300,000  Shelby
        Entrepreneurial
        Research Network,
        Small Business
        Incubator,
        Tuscaloosa, AL
    AL Alabama Small                250,000  Shelby
        Business Institute
        of Commerce, Small
        Business Incubator,
        Rainbow City, AL
    AL Shoals                       225,000  Shelby
        Entrepreneurial
        Career Network
        Renovation, Small
        Business Incubator,
        Florence, AL
    AL Alabama A&M Research         225,000  Shelby
        Institute for Small
        Business Training
        and Development
    AR University of                500,000  Lincoln; Pryor
        Arkansas Research
        and Technology Park
    CA Grow Inglewood small         500,000  Feinstein
        business loan
        program, Inglewood,
        CA
    CO  Colorado State              350,000  Salazar
        University
        Sustainable
        Biofuels
        Development Center
    CT Women's Business             300,000  Lieberman
        Development Center,
        Stamford, CT
    DE First State                  500,000  Biden; Carper
        Innovation, Inc.
        for business
        development
        organization
        focused on high
        tech businesses,
        Wilmington, DE
    FL Florida Business             500,000  Bill Nelson
        Continuity and Risk
        Management Center,
        Pensacola, FL
    IL Franklin Hospital            400,000  Durbin
        archiving and
        communications
        system, Benton, IL
    IL Business incubator,          250,000  Durbin
        Illinois State
        University
    IL Illinois Department        1,500,000  Durbin
        of Commerce and
        Economic
        Opportunity for
        statewide broadband
        infrastructure and
        connectivity,
        Springfield, IL
    IL Safer Foundation for         300,000  Durbin
        transitional
        employment
        placement, Chicago,
         IL
    IL Uhlich Children's            250,000  Durbin
        Advantage Network
        for job training,
        placement and
        retention services,
        Chicago, IL
    IL First responder              750,000  Obama
        education
        initiative,
        Benedictine
        University, Lisle,
        IL
    IL Federation of                250,000  Obama
        Independent
        Illinois Colleges
        and Universities
        for training to
        address workforce
        shortage in nursing
        and allied health,
        Springfield, IL
    IN Indiana State                500,000  Bayh
        University, City of
        Terre Haute, and
        the Rose Hulman
        Institute of
        Technology for
        business incubator,
        Terre Haute, IN
    IA Entrepreneurial              500,000  Harkin
        Development Center
        business
        accelerator, Cedar
        Rapids, IA
    IA Student Business             500,000  Grassley
        Incubator at the
        University of
        Northern Iowa,
        Cedar Falls, IA
    KS Community Child Care         500,000  Roberts
        Facility for the
        facilitation of
        Daycare needs of
        small businesses in
        the area,
        Manhattan, KS
    KS Technical Education        1,000,000  Brownback
        and Training
        Center, Sedgwick
        County, KS
    KS South Topeka               1,000,000  Brownback
        Boulevard Business
        Corridor for
        infrastructure
        upgrades, Topeka,
        KS
    KS Equipment for                750,000  Brownback
        Pharmaceutical
        Small Business
        Development at the
        University of
        Kansas
    KS Technology                   400,000  Brownback
        Entrepreneurship
        Development at the
        Kansas Technology
        Enterprise
        Corporation,
        Topeka, KS
    KY University of              1,000,000  McConnell
        Kentucky/New
        Product Development
        and
        Commercialization
        Center for Rural
        Manufacturers
    LA Women's Business              45,000  Landrieu
        Resource Center,
        New Orleans, LA
    LA Northeast Louisiana          250,000  Landrieu
        Business and
        Community
        Development Center,
        University of
        Louisiana at Monroe
    LA Grambling State              250,000  Landrieu
        University
        Expanding Minority
        Entrepreneurship
        Regionally Across
        the Louisiana Delta
        [EMERALD] Program
        (Lincoln Parish)
    LA Maritime Business            150,000  Vitter
        Training Center for
        Construction of a
        Training Facility,
        Covington, LA
    LA Southeastern                 100,000  Vitter
        Louisiana
        University Hispanic
        Business and
        Leadership
        Institute, Hammond,
        LA
    MD Small business trade         350,000  Cardin
        assistance office,
        Prince George's
        County, MD
    MA Tribal Governance            350,000  Kennedy; Kerry
        and Economic
        Development Center,
        Mashpee, MA
    MI Economic Development         300,000  Levin; Stabenow
        Coalition of
        Southeast Michigan
        for business
        accelerator, Wayne
        County, MI
    MS Pontotoc/Union/Lee         1,500,000  Cochran
        County Alliance for
        industrial park
        development and
        small business
        assistance
    MS Mississippi                1,000,000  Cochran
        Technology Alliance
        Center for
        Innovation and
        Entrepreneurial
        Alliances
    MS Industrial Outreach          500,000  Cochran
        Center at
        Mississippi State
        University
    MS Innovation Center at         500,000  Cochran
        the University of
        Mississippi for a
        business incubator
    MS Jackson State                500,000  Cochran
        University for
        continuation of the
        Lynch Street
        Corridor
        Redevelopment
    MS University of                500,000  Lott
        Southern
        Mississippi
        National Center for
        Excellence in
        Economic
        Development and
        Entrepreneurship
    MO Hispanic Chamber of          500,000  Bond
        Commerce of
        Metropolitan St.
        Louis to open and
        equip a business
        technology research
        center
    MO University of                750,000  Bond
        Missouri for an
        Asian Equities
        Research Center,
        Kansas City, MO
    MT Technology Venture           500,000  Baucus; Tester
        Center at Montana
        State University
        for statewide
        outreach for job
        creation, Bozeman,
        MT
    NE Center for Rural             250,000  Ben Nelson
        Affairs for small
        business training
        and technical
        assistance website,
        Lyons, NE
    NV Hispanic business            400,000  Reid
        and demographic
        information
        initiative,
        University of
        Nevada, Reno
    NV Center for                   200,000  Reid
        Entrepreneurship
        and Technology,
        Reno, NV
    NJ New Jersey                   150,000  Lautenberg
        Association of
        Women Business
        Owners for women's
        business growth
        initiative,
        Hamilton, NJ
    NJ Rowan University             250,000  Lautenberg
        South Jersey
        Technology Park,
        Glassboro, NJ
    NJ Cedarbridge small            300,000  Menendez
        business incubator,
        Lakewood, NJ
    NM Deployment of                500,000  Bingaman
        broadband
        technology,
        Sandoval County, NM
    NM Arrowhead Center at        1,250,000  Domenici
        New Mexico State
        University
    NM Adelante's ACCENT            500,000  Domenici
        School-to-Work
        Transition Program,
        Albuquerque, NM
    NY Northern Manhattan           275,000  Schumer; Clinton
        Coalition for
        Economic
        Development for
        business outreach
        center, New York,
        NY
    NY City of Buffalo for          500,000  Clinton; Schumer
        microloan program
        for small business,
        Buffalo,  NY
    NC University of North          100,000  Burr
        Carolina for the
        expansion of the
        Morehead Destiny
        Project
    ND Great Plains Energy          250,000  Dorgan; Conrad
        Corridor
        Coordinating
        Office, Bismarck,
        ND
    ND Nanotechnology and           150,000  Dorgan; Conrad
        Applied Science
        Laboratory, North
        Dakota State
        College of Science
    OR Portland State               500,000  Wyden
        University for a
        science research
        and teaching cen-
        ter
    PA Altoona-Blair County         300,000  Specter
        Development
        Corporation's
        Entrepreneurial
        Institute, Altoona,
        PA
    RI Newport County               500,000  Reed; Whitehouse
        Chamber of Commerce
        for marine trades
        training expansion,
        Newport, RI
    SD The N2TEC Institute          330,000  Johnson
        for a rural
        technology-based
        economic
        development
        program, Rapid
        City, SD
    TN Pellissippi Research         250,000  Alexander
        Centre on the Oak
        Ridge Corridor R&D
        Community, Alcoa,
        TN
    TN Center for                   250,000  Alexander
        Entrepreneurial
        Growth, Hamilton
        County, TN
    UT GAMBIT/FAST                  500,000  Bennett
        Manufacturing &
        Business Technology
        Center, Salt Lake
        City, UT
    VT Vermont Small                300,000  Sanders
        Business
        Development Center
        for veterans'
        business program,
        Randolph Center, VT
    VT Vermont Center for           750,000  Leahy
        Emerging
        Technologies for a
        small business
        incubator,
        Burlington, VT
    VA Virginia Center for          225,000  Webb; Warner
        Innovative
        Technology energy
        independence
        program, Herndon,
        VA
    VA Virginia Small               600,000  Warner; Webb
        Business Workforce
        Web Portal Project,
        Richmond,  VA
    WA Northwest                    400,000  Murray
        Agriculture
        Business Center,
        Burlington, WA
    WA Seattle--King County         125,000  Murray
        Workforce
        Development Council
        for Puget Sound
        regional economic
        development
        initiative
    WA Small business               300,000  Cantwell
        development center
        at Highline
        Community College,
        Des Moines, WA
    WV Haddad Riverfront          2,000,000  Byrd
        Park renovations,
        Charleston, WV
    WV Wheeling Park              1,000,000  Byrd
        Commission for a
        conference center
        at National
        Training Center for
        Public Facility
        Managers, Wheeling,
        WV
    WI Northwest Enterprise         750,000  Kohl
        Center Network for
        business
        incubators,
        Spooner, WI
------------------------------------------------------------------------

                NON-CREDIT BUSINESS ASSISTANCE PROGRAMS

    The Committee recommendation provides $144,826,000 for the 
SBA non-credit business assistance programs. The recommendation 
is $38,400,000 above the budget request.
    The Committee recommendations, by program are displayed in 
the following table:

                 NON-CREDIT BUSINESS ASSISTANCE PROGRAMS
                        [In thousands of dollars]
------------------------------------------------------------------------
                                                            Committee
                                                         recommendation
------------------------------------------------------------------------
Small Business Development Centers....................            97,120
Drug-free Workplace Grants............................               990
SCORE.................................................             4,950
Women's Business Centers..............................            16,880
Women's Council.......................................               743
Microloan Technical Assistance........................            15,000
Veteran's Business Development Assistance.............               743
PRIME.................................................             3,000
Native American Outreach..............................             1,000
7(j) Technical Assistance.............................             2,300
HUBZone...............................................             2,100
                                                       -----------------
      Total, Non-credit Business Assistance Program...           144,826
------------------------------------------------------------------------

    The Committee continues to support the Small Business 
Development Center Program.
    The Committee directs the SBA to designate a full-time 
international finance specialist in the SBA Office of 
International Trade to be located in the New Orleans U.S. 
Export Assistance Center. The Committee is concerned that the 
international finance specialists that serve the gulf are 
located in other parts of the country and that this particular 
post has been vacant since early 2003. Assigning a specialist 
to be located in the region will encourage exporting in the 
gulf coast and assist local businesses with their economic 
recovery efforts following Hurricanes Rita and Katrina.
    The Committee commends the SBA on its ongoing efforts to 
improve the agency's disaster planning and response for future 
disasters. To ensure that the SBA is better prepared and more 
responsive to disaster victims during this hurricane season, 
the Committee directs the SBA, not later than 3 months after 
the date of enactment of this act, to submit a report to the 
Committee on Appropriations of the Senate and the Committee on 
Small Business and Entrepreneurship of the Senate detailing how 
the SBA can improve the processing, approval, and disbursing of 
SBA disaster loans. The report should outline legislative 
changes, if any, to implement findings of the SBA Accelerated 
Disaster Response Initiative and also detail methods, if any, 
for the SBA to expedite loss verification and loan processing 
of disaster loans for businesses which are a major source of 
employment in an area or are vital to recovery efforts in the 
area such as debris removal services, manufactured housing, or 
building materials.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2007....................................     $13,835,000
Budget estimate, 2008...................................      15,000,000
House allowance.........................................      15,000,000
Committee recommendation................................      15,000,000

    The Committee recommendation provides $15,000,000 for the 
Office of Inspector General. The recommendation is $1,165,000 
above the fiscal year 2007 enacted level and the same as the 
budget request.

                 SURETY BOND GUARANTEES REVOLVING FUND

Appropriations, 2007....................................      $2,824,000
Budget estimate, 2008...................................       3,000,000
House allowance.........................................       3,000,000
Committee recommendation................................       3,000,000

    The Committee recommendation provides $3,000,000. The 
recommendation is $176,000 above the fiscal year 2007 enacted 
level and the same as the budget request.

                     BUSINESS LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2007....................................    $121,145,000
Budget estimate, 2008...................................     135,414,000
House allowance.........................................     217,944,000
Committee recommendation................................     137,414,000

    The Committee recommendation provides $137,414,000. The 
recommendation is $16,269,000 above the fiscal year 2007 
enacted level and $2,000,000 above the budget request.
    The amount provided for administrative expenses may be 
transferred to and merged with SBA salaries and expenses, to 
cover the common overhead expenses associated with the business 
loans programs.
    The recommendation provides $2,000,000 for the Microloan 
Direct program.

                     DISASTER LOANS PROGRAM ACCOUNT

Appropriations, 2007....................................    $112,631,000
Budget estimate, 2008...................................................
House allowance.........................................................
Committee recommendation................................................

    The Committee provides no new funding for the Disaster 
Loans Program Account. Necessary administrative expenses for 
fiscal year 2008 were provided in the Supplemental 
Appropriations Act, 2007 (Public Law 110-28) from unobligated 
balances remaining. Any direct loan subsidies required in 
fiscal year 2008 will be derived from available unobligated 
balances. As always, SBA is urged to seek out emergency funding 
in the event of a disaster requiring loan assistance.

                       ADMINISTRATIVE PROVISIONS

    Section 520 continues a provision concerning transfer 
authority and availability of funds.
    Section 521 provides that all disaster loans issued in 
Alaska or North Dakota shall not be sold.
    Section 522 makes a technical correction to the designee 
for a prior year's directed grant.

                      United States Postal Service

                   PAYMENT TO THE POSTAL SERVICE FUND

Appropriations, 2007....................................    $108,915,000
Budget estimate, 2008...................................      88,864,000
House allowance.........................................      88,864,000
Committee recommendation................................     117,864,000

                          PROGRAM DESCRIPTION

    The Post Office dates back to 1775. It became the Postal 
Service in 1971 as an independent establishment of the 
executive branch of the United States Government. The Postal 
Service's basic function and obligation is to provide postal 
services to bind the Nation together through the personal, 
educational, literary, and business correspondence of the 
people. Its mission is to provide prompt, reliable and 
efficient services to patrons in all areas and render postal 
services to all communities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends appropriations totaling 
$117,864,000 for payment to the Postal Service Fund, an 
increase of $29,000,000 above the budget request, and 
$8,949,000 above the fiscal year 2007 enacted level.
    This amount includes: $29,000,000 for revenue forgone on 
free and reduced-rate mail pursuant to 39 U.S.C. 2401(d). The 
recommendation also includes $88,864,000 as an advance 
appropriation for fiscal year 2009.
    Revenue forgone on free and reduced-rate mail enables 
postage rates to be set at levels below the unsubsidized rates 
for certain categories of mail as authorized by subsections (c) 
and (d) of section 2401 of title 39, United States Code. Free 
mail for the blind and overseas voters will continue to be 
provided at the funding level recommended by the Committee.
    The Committee includes provisions in the bill that would 
assure that mail for overseas voting and mail for the blind 
shall continue to be free; that 6-day delivery and rural 
delivery of mail shall continue without reduction; and that 
none of the funds provided be used to consolidate or close 
small rural and other small post offices in fiscal year 2008. 
These are services that must be maintained in fiscal year 2008 
and beyond.
    The Committee believes that 6-day mail delivery is one of 
the most important services provided by the Federal Government 
to its citizens. Especially in rural and small town America, 
this critical postal service is the linchpin that serves to 
bind the Nation together.
    Emergency Preparedness.--In the aftermath of the anthrax 
attacks using the U.S. mail, Congress appropriated funds for 
the Postal Service's use in building a treatment facility in 
Washington, DC. This treatment is focused on mail delivered to 
Federal agencies in the Washington region and intended to 
render harmless biological threats in this mail. The Committee 
directs the Comptroller General to assess the status of the 
treatment process, including the cost of the treatment; the 
volume of treated mail and how it has changed over time; and 
the extent of delays in mail delivery as a result of the 
treatment step and how they have changed over time. The 
Government Accountability Office shall provide a report of its 
findings and any recommendations to the House and Senate 
Committees on Appropriations by July 1, 2008.
    Mail Delivery in Chicago.--The Committee is concerned about 
mail delivery delays in Chicago, Illinois and supports the 
comprehensive review being conducted by the Postmaster General 
designed to upgrade postal operations and improve customer 
service. The Committee will continue to closely follow the 
Postal Service's management reform initiatives in order to 
secure and sustain the highest level of mail delivery service 
for postal consumers in Chicago.
    Consolidation of Mail Processing Facilities.--The Committee 
understands that the results of a GAO study of the Postal 
Service's mail processing realignment efforts will be released 
soon. The Committee understands that significant issues still 
remain with regard to the Service's Area Mail Processing 
Consolidation Initiative. Among the concerns are that criteria 
used to select facilities for consolidation and make 
implementation decisions are unclear and based on inconsistent 
data, that actual delivery performance is not considered, and 
that proposed improvements to the communication process do not 
change information provided to the public to ensure compliance 
with the public input process mandated by Congress in the 
Postal Accountability and Enhancement Act. The Committee 
directs that consolidation decisions pertaining to Sioux City, 
Iowa, Aberdeen, South Dakota, and Alexandria, Louisiana will 
not be implemented until the Postal Service fully implements 
the recommendations of the GAO and develops a mechanism to 
evaluate potential and actual impacts on delivery. The 
Committee directs that the Postal Service to keep the Committee 
informed of its consolidation plan and further directs GAO to 
continue the monitoring these efforts.
    Local Postal Management.--The Committee urges the Postal 
Service to solicit and take into consideration the view of 
local postal management in the development of appropriate 
staffing levels to ensure that postal customers receive the 
quality mail service that they expect and deserve. The 
Committee directs that the Postal Service report in writing 180 
days after enactment of this act to the Committees on 
Appropriations of the Senate and House of Representatives, the 
Senate Committee on Homeland Security and Governmental Affairs, 
and the House Committee on Oversight and Government Reform on 
the steps taken to achieve this objective.
    Forever Stamp.--The Committee commends the Postal Service 
on the release of the ``Forever Stamp,'' which will remain 
valid for letter postage even after future rate changes. This 
innovation should make postal rate changes far easier for 
household mailers, who are the main users of adhesive postage 
stamps. Consumers may avoid both the inconvenience of obsolete, 
leftover stamps and the need for last-minute trips to the post 
office to buy makeup stamps. The Committee commends the Postal 
Service for its efforts to develop innovative proposals such as 
the ``Forever Stamp,'' and trusts that the Postal Service will 
continue to find new ways to make the mail a more attractive 
and user-friendly communications medium for the American 
household.

                        United States Tax Court

                         salaries and expenses

Appropriations, 2007....................................     $47,625,000
Budget estimate, 2008...................................      45,326,000
House allowance.........................................      45,069,000
Committee recommendation................................      45,326,000

                          PROGRAM DESCRIPTION

    The U.S. Tax Court is an independent judicial body in the 
legislative branch established in 1969 under Article I of the 
Constitution of the United States. The Court was created to 
provide a national forum for the resolution of disputes between 
taxpayers and the Internal Revenue Service, resolve cases 
expeditiously while giving careful consideration to the merits 
of each matter, and ensure the uniform interpretation of the 
Internal Revenue Code. The matters over which the Court has 
jurisdiction are set forth in various sections of title 26 of 
the United States Code.
    The court is composed of 19 judges, one of whom the judges 
elect as chief judge. In their judicial duties the judges are 
assisted by senior judges, who participate in the adjudication 
of regular cases, and by special trial judges, who hear small 
tax cases and certain regular cases assigned to them by the 
chief judge.
    The court conducts trial sessions throughout the United 
States, including Hawaii and Alaska. Decisions by the court are 
reviewable by the U.S. Courts of Appeals and, if certiorari is 
granted, by the Supreme Court.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $45,326,000 
for the U.S. Tax Court. This amount is the same as the budget 
request and $2,299,000 below the fiscal year 2007 enacted 
level. The Committee notes that the reduced funding reflects 
two major initiatives, specifically productivity gains achieved 
through prior investment in information technology and reduced 
personnel compensation based on several cost-cutting management 
decisions. The Committee encourages the Court to implement the 
security measures outlined by the Court, including installation 
of security systems in the homes of Tax Court judicial officers 
and reimbursement of the United States Marshals Service for 
supplying security personnel in courtrooms where the Tax Court 
presides.

                STATEMENT CONCERNING GENERAL PROVISIONS

    The Financial Services and General Government appropriation 
bill includes general provisions which govern both the 
activities of the agencies covered by the bill, and, in some 
cases, activities of agencies, programs, and general government 
activities that are not covered by the bill.
    The bill contains a number of general provisions that have 
been carried in this bill for years and which are routine in 
nature and scope. General provisions in the bill are explained 
under this section of the report. Those general provisions that 
deal with a single agency only are shown immediately following 
that particular agency's or department's appropriation accounts 
in the bill. Those provisions that address activities or 
directives affecting all of the agencies covered in this bill 
are contained in title VI. General provisions that are 
governmentwide in scope are contained in title VII of this 
bill. General provisions applicable to the District of Columbia 
are contained in title VIII of this bill.

                                TITLE VI

                      GENERAL PROVISIONS THIS ACT

    Section 601 continues the provision requiring pay raises to 
be absorbed within appropriated levels in this act or previous 
appropriations acts.
    Section 602 continues the provision prohibiting pay and 
other expenses for non-Federal parties in regulatory or 
adjudicatory proceedings funded in this act.
    Section 603 continues the provision prohibiting obligations 
beyond the current fiscal year and prohibits transfers of funds 
unless expressly so provided herein.
    Section 604 continues the provision limiting expenditures 
for consulting service through procurement contracts where such 
expenditures are a matter of public record and available for 
public inspection.
    Section 605 continues the provision prohibiting funds in 
this act to be transferred without express authority.
    Section 606 continues the provision prohibiting the use of 
funds to engage in activities that would prohibit the 
enforcement of section 307 of the 1930 Tariff Act (46 Stat. 
590).
    Section 607 continues the provision protecting employment 
rights of Federal employees who return to their civilian jobs 
after assignment with the Armed Forces.
    Section 608 continues the provision prohibiting the use of 
funds in compliance with the Buy American Act.
    Section 609 continues the provision prohibiting funding for 
any person or entity convicted of violating the Buy American 
Act.
    Section 610 continues and modifies the provision 
authorizing the reprogramming of funds and specifies the 
reprogramming procedures for agencies funded by this act.
    Section 611 continues the provision ensuring that 50 
percent of unobligated balances may remain available for 
certain purposes.
    Section 612 continues the provision restricting the use of 
funds for the Executive Office of the President to request 
official background reports from the Federal Bureau of 
Investigation without the written consent of the individual who 
is the subject of the report.
    Section 613 continues the provision ensuring that the cost 
accounting standard shall not apply with respect to a contract 
under the Federal Employees Health Benefits Program.
    Section 614 continues the provision referencing non-foreign 
area cost of living allowances.
    Section 615 continues the provision waiving restrictions on 
the purchase of non-domestic articles, materials, and supplies 
in the case of acquisition by the Federal Government of 
information technology.
    Section 616 continues the provision prohibiting the use of 
funds for a proposed rule related to the determination that 
real estate brokerage activities are financial activities.
    Section 617 is a new provision amending the International 
Emergency Economic Powers Act to increase the civil and 
criminal penalties under the act. The Committee includes this 
provision because of the situation in the Sudan and the crisis 
in Darfur.
    Section 618 is a new provision requiring a report on the 
overall impact of economic sanctions on the Government of Sudan 
and the crisis in Darfur.
    Section 619 prohibits the use of funds to enforce a 
provision of the Cuban Assets Control Regulations that impedes 
sales to Cuba.
    Section 620 is a provision relating to travel to Cuba for 
commercial sales of agricultural and medical goods.

                               TITLE VII

    GENERAL PROVISIONS GOVERNMENT-WIDE, DEPARTMENTS, AGENCIES, AND 
                              CORPORATIONS

    Section 701 continues and makes permanent the provision 
authorizing agencies to pay travel costs of the families of 
Federal employees on foreign duty to return to the United 
States in the event of death or a life threatening illness of 
the employee.
    Section 702 continues the provision requiring agencies to 
administer a policy designed to ensure that all of its 
workplaces are free from the illegal use of controlled 
substances.
    Section 703 continues the provision regarding price 
limitations on vehicles purchased by the Federal Government. 
Price limitations are updated consistent with the President's 
budget request.
    Section 704 continues the provision allowing funds made 
available to agencies for travel to also be used for quarters 
allowances and cost-of-living allowances.
    Section 705 continues the provision prohibiting the 
government, with certain specified exceptions, from employing 
non-U.S. citizens whose posts of duty would be in the 
continental United States.
    Section 706 continues the provision ensuring that agencies 
will have authority to pay the General Services Administration 
bills for space renovation and other services.
    Section 707 continues the provision allowing agencies to 
finance the costs of recycling and waste prevention programs 
with proceeds from the sale of materials recovered through such 
programs.
    Section 708 continues the provision providing that funds 
may be used to pay rent and other service costs in the District 
of Columbia.
    Section 709 continues and makes permanent the provision 
prohibiting the use of appropriated funds to pay the salary of 
any nominee after the Senate voted not to approve the 
nomination.
    Section 710 continues the provision precluding interagency 
financing of groups absent prior statutory approval.
    Section 711 continues the provision prohibiting the use of 
appropriated funds for enforcing regulations disapproved in 
accordance with the applicable law of the United States.
    Section 712 continues the provision limiting the pay 
increases of certain prevailing rate employees.
    Section 713 continues the provision limiting the amount 
that can be used for redecoration of offices under certain 
circumstances.
    Section 714 continues the provision that permits 
interagency funding of national security and emergency 
preparedness telecommunications initiatives, which benefit 
multiple Federal departments, agencies, and entities.
    Section 715 continues the provision requiring agencies to 
certify that a schedule C appointment was not created solely or 
primarily to detail the employee to the White House.
    Section 716 continues and makes permanent the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from discrimination and 
sexual harassment.
    Section 717 continues the provision prohibiting the use of 
funds to prevent Federal employees from communicating with 
Congress or to take disciplinary or personnel actions against 
employees for such communication.
    Section 718 continues the provision prohibiting Federal 
training not directly related to the performance of official 
duties.
    Section 719 continues the provision prohibiting the 
expenditure of funds for the implementation of agreements in 
certain nondisclosure policies unless certain provisions are 
included in the policies.
    Section 720 continues the provision prohibiting use of 
appropriated funds for publicity or propaganda designed to 
support or defeat legislation pending before Congress.
    Section 721 continues the provision prohibiting the use of 
appropriated funds by an agency to provide Federal employees 
home address to labor organizations, absent employee 
authorization or court order.
    Section 722 continues the provision prohibiting the use of 
appropriated funds to provide non-public information such as 
mailing or telephone lists to any person or organization 
outside of the Government without approval of the Committees on 
Appropriations.
    Section 723 continues the provision prohibiting the use of 
appropriated funds for publicity or propaganda purposes within 
the United States not authorized by Congress.
    Section 724 continues the provision directing agencies 
employees to use official time in an honest effort to perform 
official duties.
    Section 725 continues the provision authorizing the use of 
current fiscal year funds to finance an appropriate share of 
the Federal Accounting Standards Advisory Board.
    Section 726 continues the provision, with technical 
modifications, authorizing agencies to transfer funds to or 
reimburse the Government-wide Policy account of the General 
Services Administration to finance an appropriate share of 
various government-wide boards and councils.
    Section 727 continues the provision authorizing 
breastfeeding at any location in a Federal building or on 
Federal property.
    Section 728 continues the provision permitting interagency 
funding of the National Science and Technology Council, and 
provides for an OMB report on the budget and resources of the 
Council.
    Section 729 continues the provision requiring 
identification of the Federal agencies providing Federal funds 
and the amount provided for all proposals, solicitations, grant 
applications, forms, notifications, press releases, or other 
publications related to the distribution of funding to a State.
    Section 730 continues a provision which extends the 
authorization for franchise fund pilots for one year with 
modification.
    Section 731 continues the provision prohibiting the use of 
funds to monitor personal information relating to the use of 
Federal Internet sites.
    Section 732 continues the provision regarding contraceptive 
coverage under the Federal Employees Health Benefits Plan.
    Section 733 continues the provision recognizing the U.S. 
Anti-Doping Agency as the official anti-doping agency for 
Olympic, Pan American, and Paralympic sports in the United 
States.
    Section 734 continues the provision allowing departments 
and agencies to use official travel funds to participate in the 
fractional aircraft ownership pilot programs.
    Section 735 continues the provision prohibiting funds for 
implementation of OPM regulations limiting detailees to the 
legislative branch and placing certain limitations on the Coast 
Guard Congressional Fellowship program.
    Section 736 continues the provision prohibiting the 
expenditure of funds for the acquisition of certain additional 
Federal law enforcement training facilities.
    Section 737 continues the provision providing funding for 
the Midway Atoll Airfield.
    Section 738 continues the provision concerning the use of 
funds for the ``e-Gov'' initiative that were not appropriated 
specifically for that purpose.
    Section 739 continues the provision, with modifications, 
establishing a set of outsourcing contracting requirements that 
provide an even playing field for the private and public 
sector.
    Section 740 continues a provision, with modifications, 
providing that the adjustment in rates of basic pay for 
employees under statutory pay systems taking effect in fiscal 
year 2008 shall be an increase of 3.5 percent. Language has 
been updated to reflect the current status of Department of 
Defense employees covered under the National Security Personnel 
System.
    Section 741 continues a provision that prohibits executive 
branch agencies from creating or funding prepackaged news 
stories that are broadcast or distributed in the United States 
unless specific notification conditions are met.
    Section 742 continues the provision prohibiting funds used 
in contravention of the Privacy Act, section 552a of title 5, 
United States Code or section 522.224 of title 48 of the Code 
of Federal Regulations.
    Section 743 continues, with a modification, the provision 
requiring each department and agency to evaluate the 
creditworthiness of an individual before issuing the individual 
a Government purchase charge card or travel card. The Committee 
includes new language, as requested, authorizing an assessment 
of the individual's consumer report from a consumer reporting 
agency. The Committee expects this authority to evaluate 
consumer credit reports shall be used for no other purpose 
other than to assess creditworthiness for purposes of issuing 
an individually billed Government travel charge card.
    Section 744 includes a provision concerning the application 
of these general provisions to title IV and title VIII.
    Section 745 includes a provision prohibiting funds from 
being used for any Federal Government contract with any foreign 
incorporated entity which is treated as an inverted domestic 
corporation.
    Section 746 includes a provision requiring improvements to 
enhance public access to information on agency Inspector 
General websites.

                               TITLE VIII

                           GENERAL PROVISIONS

                          District of Columbia

    Section 801 continues the provision that specifies that an 
appropriation for a particular purpose or object shall be 
considered as the maximum amount that may be expended for said 
purpose or object.
    Section 802 continues the provision that permits funds for 
travel and payment of dues.
    Section 803 continues the provision that appropriates funds 
for refunding overpayments of taxes collected and for paying 
settlements and judgments against the District of Columbia 
government.
    Section 804 modifies the provision that prohibits the use 
of appropriation for publicity or propaganda purposes, and 
permits the use of local funds for carry out lobbying activity.
    Section 805 modifies the provision that establishes 
reprogramming and transfer requirements with respect to 
notification requirements for the reprogramming of local funds.
    Section 806 continues the provision that prohibits use of 
funds only to the objects for which the appropriations were 
made.
    Section 807 continues the provision that clarifies the pay 
setting authority for District employees as the District's 
Merit Personnel Act rather than title 5 of the United States 
Code.
    Section 808 continues the provision that directs the Mayor 
of the District of Columbia to submit new fiscal year 2008 
revenue estimates as of the end of such quarter.
    Section 809 continues the provision that prohibits the use 
of Federal funds for salaries, expenses, or other costs 
associated with the offices of U.S. Senator or Representative 
under section 4(d) of the D.C. Statehood Constitutional 
Convention Initiatives of 1979.
    Section 810 continues the provision restricting use of 
Federal funds for the implementation or enforcement of the 
Health Care Benefits Expansion Act of 1992.
    Section 811 continues the provision that allows the mayor 
to accept, obligate, and expend Federal, private, and other 
grants received by the District government that are not 
reflected in the amounts appropriated in this act.
    Section 812 modifies the provision that restricts the use 
of official vehicles to official duties and not between a 
residence and workplace, except in the case of a police officer 
who resides in the District of Columbia at the discretion of 
the Chief, an officer or employee of the D.C. Fire and 
Emergency Medical Services Department who resides in the 
District of Columbia and is on call 24 hours a day, an officer 
or employee of the District of Columbia Department of 
Corrections, the Mayor of the District of Columbia, and the 
Chairman of the Council of the District of Columbia.
    Section 813 modifies the provision that prohibits the use 
of appropriated funds by the Corporation Counsel or any other 
officer or entity of the District government to provide 
assistance for any petition drive or civil action which seeks 
to require Congress to provide for voting representation in 
Congress for the District of Columbia.
    Section 814 continues the provision that prohibits the use 
of any funds in this act to carry out any program of 
distributing sterile needles or syringes for the hypodermic 
injection of any illegal drug.
    Section 815 continues the provision that requires the Chief 
Financial Officers of the District of Columbia to certify that 
they understand the duties and restrictions applicable to their 
agency as a result of this act.
    Section 816 continues the provision that includes a 
``conscience clause' on legislation that pertains to 
contraceptive coverage by health insurance plans.
    Section 817 modifies the provision that requires the Mayor 
of the District of Columbia to submit reports on various issues 
pertaining to the District of Columbia.
    Section 818 continues the provision that requires the CFO 
to submit a revised appropriated funds operating budget in the 
format of the budget that the District government submitted 
pursuant to section 442 of the D.C. Home Rule Act for all 
agencies no later than 30 calendar days after the date of 
enactment of this act.
    Section 819 continues the provision that prohibits the use 
of any funds in the act to: (1) pay the fees of an attorney who 
represents a party in an action or any attorney who defends any 
action, including an administrative proceeding, brought against 
D.C. Public Schools under the Individuals with Disabilities 
Education Act [IDEA] in excess of $4,000 for that action; (2) 
pay the fees of an attorney or firm whom the CFO determines to 
have a pecuniary interest, either through an attorney, officer 
or employee of the firm, in any special education diagnostic 
services, schools, or other special education service 
providers; and (3) require all savings to be used to expand 
special education services within the District. The Committee 
has been assured by the Executive Office of the Mayor that the 
District of Columbia will support removal of the cap on 
attorneys' fees, as applied prospectively to actions brought 
against it under Individuals with Disabilities Education Act, 
in fiscal year 2009. The Committee accepts this assurance in 
recognition of the fact that the Mayor has been exercising 
control of the public school system for less than a month and 
because it wishes to give the Mayor and his new school 
leadership team adequate time to develop a fiscal year 2009 
budget that takes into consideration this change in policy and 
also to make substantive reforms to the special education 
system in the District that the Committee is hopeful will 
result in less frequent litigation of disputes under the act.
    Section 820 continues the provision that allows for 
appropriations in this act to be increased by no more than 
$50,000,000 from unexpended general funds, and may be used only 
for one-time expenditures, to avoid deficit spending, for debt 
reduction, for program needs, or to avoid revenue shortfalls.
    Section 821 continues the provision that allows the 
District to spend ``other-type funds'' under certain 
conditions.
    Section 822 continues the provision that allows for short-
term borrowing from the emergency and contingency reserve funds 
established under section 450A of the District of Columbia Home 
Rule Act (Public Law 98-198; D.C. Official Code, sec. 1-
204.50a) under certain circumstances.
    Section 823 continues the provision prohibiting use of 
funds to change the legality of marijuana use.
    Section 824 continues the provision relating to abortion.
    Section 825 includes a new provision which adopts a budget 
treatment for the Public Defender Services for the District of 
Columbia independent of the Court Services and Offender 
Supervision Agency for the District of Columbia.
    Section 826 includes a new provision to mitigate the 
necessity for dual budgeting of local funds when such funds are 
transferred but not expended.
    Section 827 includes a new provision to permit full 
implementation of changes for education reform.
    Section 828 includes a provision to permit an increase in 
the compensation of the District of Columbia Chief Financial 
Officer.
    Section 829 includes a provision to permit transfer of 
unobligated balances in the District of Columbia Crime Victim's 
Compensation Act to the Crime Victim Assistance Fund in 
accordance with a spending plan submitted to Congress.
    Section 830 continues the provision which limits references 
to ``this Act'' as referring to only this title. Z03rept.038

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify each Committee amendment 
to the House bill ``which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.''
    Items providing funding for fiscal year 2008 which lack 
authorization are as follows:
Department of the Treasury
    Departmental Offices
    Department-wide Systems and Capital Investments
    Office of the Inspector General
    Inspector General for Tax Administration
    Financial Crimes Enforcement Network
    Financial Management Service
    Alcohol and Tobacco Tax and Trade Bureau
    Bureau of the Public Debt
    Community Development and Financial Institutions Fund
    Internal Revenue Service:
        Taxpayer Services
        Enforcement
        Operations Support
        Business Systems Modernization
        Health Insurance Tax Credit Administration
Executive Office of the President
    Office of Management and Budget
    ONDCP: Training for drug court professionals
District of Columbia
    Federal Payment for the DC Water and Sewer Authority
    Federal Payment for School Improvement
    Federal Payment for Central Library and Branch Locations
    Federal Payment for Consolidated Laboratory Facility
    Federal Payment to Reimburse the Federal Bureau of 
Investigation
    Federal Payment to the Executive Officer of the Mayor
Independent Agencies
    Commodity Futures Trading Commission
    Consumer Product Safety Commission
    Election Assistance Commission
    Federal Communications Commission
    Federal Elections Commission
    Federal Trade Commission
    General Services Administration:
        Federal Building Fund
        GSA E-government Fund
    Office of Government Ethics
    Office of Special Counsel
    Merit Systems Protection Board
    Securities and Exchange Commission
    Small Business Administration

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, on July 12, 2007, 
the Committee ordered reported H.R. 2829, making appropriations 
for financial services and general government for the fiscal 
year ending September 30, 2008, and for other purposes, with an 
amendment in the nature of a substitute; with the bill subject 
to further amendment and subject to the budget allocations, by 
a recorded vote of 15-14, a quorum being present. The vote was 
as follows:
        Yeas                          Nays
Chairman Byrd                       Mr. Cochran
Mr. Inouye                          Mr. Stevens
Mr. Leahy                           Mr. Specter
Mr. Harkin                          Mr. Domenici
Ms. Mikulski                        Mr. Bond
Mr. Kohl                            Mr. McConnell
Mrs. Murray                         Mr. Shelby
Mr. Dorgan                          Mr. Gregg
Mrs. Feinstein                      Mr. Bennett
Mr. Durbin                          Mr. Craig
Mr. Johnson                         Mrs. Hutchison
Ms. Landrieu                        Mr. Brownback
Mr. Reed                            Mr. Allard
Mr. Lautenberg                      Mr. Alexander
Mr. Nelson

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee reports 
on a bill or joint resolution repealing or amending any statute 
or part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the Committee.''
    In compliance with this rule, the following changes in 
existing law proposed to be made by this bill are shown as 
follows: existing law to be omitted is enclosed in black 
brackets; new matter is printed in italic; and existing law in 
which no change is proposed is shown in roman.

TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

           *       *       *       *       *       *       *

PART III--EMPLOYEES

           *       *       *       *       *       *       *

                        SUBPART I--MISCELLANEOUS

 CHAPTER 95--PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL REVENUE 
SERVICE

           *       *       *       *       *       *       *

Sec. 9502. Pay authority for critical positions

  (a) When the Secretary of the Treasury seeks a grant of 
authority under section 5377 for critical pay for 1 or more 
positions at the Internal Revenue Service, the [Office of 
Management and Budget] Office of Personnel Management may fix 
the rate of basic pay, notwithstanding sections 5377(d)(2) and 
5307, at any rate up to the salary set in accordance with 
section 104 of title 3.

           *       *       *       *       *       *       *

Sec. 9503. Streamlined critical pay authority

  (a) Notwithstanding section 9502, and without regard to the 
provisions of this title governing appointments in the 
competitive service or the Senior Executive Service and 
chapters 51 and 53 (relating to classification and pay rates), 
the Secretary of the Treasury may, [for a period of 10 years 
after the date of enactment of this section] before July 23, 
2013, establish, fix the compensation of, and appoint 
individuals to, designated critical administrative, technical, 
and professional positions needed to carry out the functions of 
the Internal Revenue Service, if--
          (1)  * * *

           *       *       *       *       *       *       *

Sec. 9504. Recruitment, retention, relocation incentives, and 
                    relocation expenses

  (a) [For a period of 10 years after the date of enactment of 
this section] Before July 23, 2013 and subject to approval by 
the Office of Personnel Management, the Secretary of the 
Treasury may provide for variations from sections 5753 and 5754 
governing payment of recruitment, relocation, and retention 
incentives.
  (b) [For a period of 10 years after the date of enactment of 
this section] Before July 23, 2013, the Secretary of the 
Treasury may pay from appropriations made to the Internal 
Revenue Service allowable relocation expenses under section 
5724a for employees transferred or reemployed and allowable 
travel and transportation expenses under section 5723 for new 
appointees, for any new appointee appointed to a position for 
which pay is fixed under section 9502 or 9503 after June 1, 
1998.

Sec. 9505. Performance awards for senior executives

  (a) [For a period of 10 years after the date of enactment of 
this section] Before July 23, 2013, Internal Revenue Service 
senior executives who have program management responsibility 
over significant functions of the Internal Revenue Service may 
be paid a performance bonus without regard to the limitation in 
section 5384(b)(2) if the Secretary of the Treasury finds such 
award warranted based on the executive's performance.

           *       *       *       *       *       *       *

TITLE 22--FOREIGN RELATIONS AND INTERCOURSE

           *       *       *       *       *       *       *

CHAPTER 79--TRADE SANCTIONS REFORM AND EXPORT ENHANCEMENT

           *       *       *       *       *       *       *

Sec. 7209. Requirements relating to certain travel-related transactions 
                    with Cuba

(a) Authorization of travel relating to commercial sale of 
            agricultural commodities

    The Secretary of the Treasury shall promulgate regulations 
under which the travel-related transactions listed in 
subsection (c) of section 515.560 of title 31, Code of Federal 
Regulations, may be authorized on a case-by-case basis by a 
specific license for travel to, from, or within Cuba for the 
commercial export sale of agricultural commodities pursuant to 
the provisions of this chapter.
    (a) Authorization of Travel Relating to Commercial Sales of 
Agricultural and Medical Goods.--The Secretary of the Treasury 
shall promulgate regulations under which the travel-related 
transactions listed in paragraph (c) of section 515.560 of 
title 31, Code of Federal Regulations, are authorized by 
general license for travel to, from, or within Cuba for the 
marketing and sale of agricultural and medical goods pursuant 
to the provisions of this title.

           *       *       *       *       *       *       *

TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE

           *       *       *       *       *       *       *

CHAPTER 5--DISTRICT COURTS

           *       *       *       *       *       *       *

Sec. 128. Washington

           *       *       *       *       *       *       *

    (b) * * *
            Court for the Western District shall be held at 
        [Bellingham, Seattle, and Tacoma] Bellingham, Seattle, 
        Tacoma, and Vancouver.

           *       *       *       *       *       *       *

Sec. 1491. Claims against United States generally; actions involving 
                    Tennessee Valley Authority

  (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

    (5) If a private sector interested party commences an 
action described in paragraph (1) in the case of a public-
private competition conducted under Office of Management and 
Budget Circular A-76 regarding performance of an activity or 
function of a Federal agency, or a decision to convert a 
function performed by Federal employees to private sector 
performance without a competition under Office of Management 
and Budget Circular A-76, then an official or person described 
in section 3551(2)(B) of title 31 shall be entitled to 
intervene in that action.

           *       *       *       *       *       *       *

TITLE 31--MONEY AND FINANCE

           *       *       *       *       *       *       *

CHAPTER 33--DEPOSITING, KEEPING, AND PAYING MONEY

           *       *       *       *       *       *       *

SUBCHAPTER III--MISCELLANEOUS

           *       *       *       *       *       *       *

Sec. 3333. Relief for payments made without negligence

    (a)(1) * * *

           *       *       *       *       *       *       *

    [(3) The amount of the relief shall be charged to the Check 
Forgery Insurance Fund (31 U.S.C. 3343). A recovery or 
repayment of a loss for which replacement is made out of the 
fund shall be credited to the fund and is available for the 
purposes for which the fund was established.]
    (3) The amount of the relief and the amount of any relief 
granted to an official or agent of the Department of the 
Treasury under 31 U.S.C. 3527, shall be charged to the Check 
Forgery Insurance Fund (31 U.S.C. 3343). A recovery or 
repayment of a loss for which replacement is made out of the 
fund shall be credited to the fund and is available for the 
purposes for which the fund was established.

           *       *       *       *       *       *       *

                 CHAPTER 35--ACCOUNTING AND COLLECTION

                          SUBCHAPTER I--GENERAL

Sec.
3501.  Definition.
     * * * * * * *

                SUBCHAPTER V--PROCUREMENT PROTEST SYSTEM

     * * * * * * *
3557.  Expedited action in protests for public-private competitions.

           *       *       *       *       *       *       *

                SUBCHAPTER V--PROCUREMENT PROTEST SYSTEM

Sec. 3551. Definitions

    In this subchapter:
            (1) * * *
            [(2)(A) The term ``interested party'', with respect 
        to a contract or a solicitation or other request for 
        offers described in paragraph (1), means an actual or 
        prospective bidder or offeror whose direct economic 
        interest would be affected by the award of the contract 
        or by failure to award the contract.
            [(B) The term includes the official responsible for 
        submitting the Federal agency tender in a public-
        private competition conducted under Office of 
        Management and Budget Circular A-76 regarding an 
        activity or function of a Federal agency performed by 
        more than 65 full-time equivalent employees of the 
        Federal agency.]
            (2) The term ``interested party''--
                    (A) with respect to a contract or a 
                solicitation or other request for offers 
                described in paragraph (1), means an actual or 
                prospective bidder or offeror whose direct 
                economic interest would be affected by the 
                award of the contract or by failure to award 
                the contract; and
                    (B) with respect to a public-private 
                competition conducted under Office of 
                Management and Budget Circular A-76 regarding 
                performance of an activity or function of a 
                Federal agency, or a decision to convert a 
                function performed by Federal employees to 
                private sector performance without a 
                competition under OMB Circular A-76, includes--
                            (i) any official who submitted the 
                        agency tender in such competition; and
                            (ii) any one person who, for the 
                        purpose of representing them in a 
                        protest under this subchapter that 
                        relates to such competition, has been 
                        designated as their agent by a majority 
                        of the employees of such Federal agency 
                        who are engaged in the performance of 
                        such activity or function.

           *       *       *       *       *       *       *

Sec. 3557. Expedited action in protests for public-private 
                    competitions.

  For protests in cases of public-private competitions 
conducted under Office of Management and Budget Circular A-76 
regarding performance of an activity or function of Federal 
agencies, the Comptroller General shall administer the 
provisions of this subchapter in a manner best suited for 
expediting final resolution of such protests and final action 
in such competitions.

           *       *       *       *       *       *       *

TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS

           *       *       *       *       *       *       *

CHAPTER 33--ACQUISITION, CONSTRUCTION, AND ALTERATION

           *       *       *       *       *       *       *

Sec. 3313. Delegation

(a) * * *
    (1) shall, except for the authority contained in section 
3305(b) of this title, be delegated on request to the 
appropriate [executive] federal agency when the estimated cost 
of the project does not exceed $100,000; and
    (2) may be delegated to the appropriate [executive] federal 
agency when the Administrator determines that delegation will 
promote efficiency and economy.

           *       *       *       *       *       *       *

TITLE 50--WAR AND NATIONAL DEFENSE

           *       *       *       *       *       *       *

CHAPTER 35--INTERNATIONAL EMERGENCY ECONOMIC POWERS

           *       *       *       *       *       *       *

[Sec. 1705. Penalties

    [(a) A civil penalty of not to exceed $10,000 may be 
imposed on any person who violates, or attempts to violate, any 
license, order, or regulation issued under this chapter.
    [(b) Whoever willfully violates, or willfully attempts to 
violate, any license, order, or regulation issued under this 
chapter shall, upon conviction, be fined not more than $50,000, 
or, if a natural person, may be imprisoned for not more than 
ten years, or both; and any officer, director, or agent of any 
corporation who knowingly participates in such violation may be 
punished by a like fine, imprisonment, or both.]

SEC. 206. PENALTIES.

    (a) Unlawful Acts.--It shall be unlawful for a person to 
violate, attempt to violate, conspire to violate, or cause a 
violation of any license, order, regulation, or prohibition 
issued under this title.
    (b) Civil Penalty.--A civil penalty may be imposed on any 
person who commits an unlawful act described in subsection (a) 
in an amount not to exceed the greater of--
            (1) $250,000; or
            (2) an amount that is twice the amount of the 
        transaction that is the basis of the violation with 
        respect to which the penalty is imposed.
    (c) Criminal Penalty.--A person who willfully commits, 
willfully attempts to commit, or willfully conspires to commit, 
or aids or abets in the commission of, an unlawful act 
described in subsection (a) shall, upon conviction, be fined 
not more than $1,000,000, or if a natural person, may be 
imprisoned for not more than 20 years, or both.

           *       *       *       *       *       *       *

FAIR CREDIT REPORTING ACT, PUBLIC LAW 91-508

           *       *       *       *       *       *       *

Sec. 604. Permissible purposes of reports

  (a) In General.--Subject to subsection (c), any consumer 
reporting agency may furnish a consumer report under the 
following circumstances and no other:
          (1) * * *

           *       *       *       *       *       *       *

          (3) To a person which it has reason to believe--
                  (A) * * *

           *       *       *       *       *       *       *

                  (G) executive departments and agencies in 
                connection with the issuance of government-
                sponsored individually-billed travel charge 
                cards.

           *       *       *       *       *       *       *

FEDERAL FINANCIAL MANAGEMENT ACT OF 1994, PUBLIC LAW 103-356

           *       *       *       *       *       *       *

 SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

    (a) * * *

           *       *       *       *       *       *       *

    (f) Termination.--The provisions of this section shall 
expire on [October 1, 2006] October 1, 2008.

           *       *       *       *       *       *       *

DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUICIARY, AND RELATED 
AGENCICES APPROPRIATIONS ACT, 1998, PUBLIC LAW 105-119

           *       *       *       *       *       *       *

  Sec. 122. (a) * * *

           *       *       *       *       *       *       *

  (g)(1) Notwithstanding any other provision of law and subject 
to paragraph (2), the Secretary of the Treasury is authorized 
to establish, for a period of [8 years] 10 years from date of 
enactment of this provision, a personnel management 
demonstration project providing for the compensation and 
performance management of not more than a combined total of 950 
employees who fill critical scientific, technical, engineering, 
intelligence analyst, language translator, and medical 
positions in the Bureau of Alcohol, Tobacco and Firearms.

           *       *       *       *       *       *       *

AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT, PUBLIC LAW 107-
                                  942

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Air Transportation Safety and 
System Stabilization Act''.

                     TITLE I--AIRLINE STABILIZATION

SEC. 101. AVIATION DISASTER RELIEF.

  (a) In General.--Notwithstanding any other provision of law, 
the President shall take the following actions to compensate 
air carriers for losses incurred by the air carriers as a 
result of the terrorist attacks on the United States that 
occurred on September 11, 2001:
          [(1) Subject to such terms and conditions as the 
        President deems necessary, issue Federal credit 
        instruments to air carriers that do not, in the 
        aggregate, exceed $10,000,000,000 and provide the 
        subsidy amounts necessary for such instruments in 
        accordance with the provisions of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661 et seq.).]

           *       *       *       *       *       *       *

[SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD.

  [(a) Definitions.--In this section, the following definitions 
apply:
          [(1) Board.--The term ``Board'' means the Air 
        Transportation Stabilization Board established under 
        subsection (b).
          [(2) Financial obligation.--The term ``financial 
        obligation'' means any note, bond, debenture, or other 
        debt obligation issued by an obligor in connection with 
        financing under this section and section 101(a)(1).
          [(3) Lender.--The term ``lender'' means any non-
        Federal qualified institutional buyer (as defined by 
        section 230.144A(a) of title 17, Code of Federal 
        Regulations (or any successor regulation) known as Rule 
        144A(a) of the Securities and Exchange Commission and 
        issued under the Security Act of 1933, including--
                  [(A) a qualified retirement plan (as defined 
                in section 4974(c) of the Internal Revenue Code 
                of 1986 (26 U.S.C. 4974(c)) that is a qualified 
                institutional buyer; and
                  [(B) a governmental plan (as defined in 
                section 414(d) of the Internal Revenue Code of 
                1986 (26 U.S.C. 414(d)) that is a qualified 
                institutional buyer.
          [(4) Obligor.--The term ``obligor'' means a party 
        primarily liable for payment of the principal of or 
        interest on a Federal credit instrument, which party 
        may be a corporation, partnership, joint venture, 
        trust, or governmental entity, agency, or 
        instrumentality.
  [(b) Air Transportation Stabilization Board.--
          [(1) Establishment.--There is established a board (to 
        be known as the ``Air Transportation Stabilization 
        Board'') to review and decide on applications for 
        Federal credit instruments under section 101(a)(1).
          [(2) Composition.--The Board shall consist of--
                  [(A) the Secretary of Transportation or the 
                designee of the Secretary;
                  [(B) the Chairman of the Board of Governors 
                of the Federal Reserve System, or the designee 
                of the Chairman, who shall be the Chair of the 
                Board;
                  [(C) the Secretary of the Treasury or the 
                designee of the Secretary; and
                  [(D) the Comptroller General of the United 
                States, or the designee of the Comptroller 
                General, as a nonvoting member of the Board.
  [(c) Federal Credit Instruments.--
          [(1) In general.--The Board may enter into agreements 
        with 1 or more obligors to issue Federal credit 
        instruments under section 101(a)(1) if the Board 
        determines, in its discretion, that--
                  [(A) the obligor is an air carrier for which 
                credit is not reasonably available at the time 
                of the transaction;
                  [(B) the intended obligation by the obligor 
                is prudently incurred; and
                  [(C) such agreement is a necessary part of 
                maintaining a safe, efficient, and viable 
                commercial aviation system in the United 
                States.
          [(2) Terms and limitations.--
                  [(A) Forms; terms and conditions.--A Federal 
                credit instrument shall be issued under section 
                101(a)(1) in such form and on such terms and 
                conditions and contain such covenants, 
                representations, warranties, and requirements 
                (including requirements for audits) as the 
                Board determines appropriate.
                  [(B) Procedures.--Not later than 14 days 
                after the date of enactment of this Act, the 
                Director of the Office of Management and Budget 
                shall issue regulations setting forth 
                procedures for application and minimum 
                requirements, which may be supplemented by the 
                Board in its discretion, for the issuance of 
                Federal credit instruments under section 
                101(a)(1).
  [(d) Financial Protection of Government.--
          [(1) In general.--To the extent feasible and 
        practicable, the Board shall ensure that the Government 
        is compensated for the risk assumed in making 
        guarantees under this title.
          [(2) Government participation in gains.--To the 
        extent to which any participating corporation accepts 
        financial assistance, in the form of accepting the 
        proceeds of any loans guaranteed by the Government 
        under this title, the Board is authorized to enter into 
        contracts under which the Government, contingent on the 
        financial success of the participating corporation, 
        would participate in the gains of the participating 
        corporation or its security holders through the use of 
        such instruments as warrants, stock options, common or 
        preferred stock, or other appropriate equity 
        instruments.
          [(3) Deposit in treasury.--All amounts collected by 
        the Secretary of the Treasury under this subsection 
        shall be deposited in the Treasury as miscellaneous 
        receipts.]

           *       *       *       *       *       *       *

[SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.

  [(a) In General.--The President may only issue a Federal 
credit instrument under section 101(a)(1) to an air carrier 
after the air carrier enters into a legally binding agreement 
with the President that, during the 2-year period beginning 
September 11, 2001, and ending September 11, 2003, no officer 
or employee of the air carrier whose total compensation 
exceeded $300,000 in calendar year 2000 (other than an employee 
whose compensation is determined through an existing collective 
bargaining agreement entered into prior to September 11, 
2001)--
          [(1) will receive from the air carrier total 
        compensation which exceeds, during any 12 consecutive 
        months of such 2-year period, the total compensation 
        received by the officer or employee from the air 
        carrier in calendar year 2000; and
          [(2) will receive from the air carrier severance pay 
        or other benefits upon termination of employment with 
        the air carrier which exceeds twice the maximum total 
        compensation received by the officer or employee from 
        the air carrier in calendar year 2000.
  [(b) Total Compensation Defined.--In this section, the term 
``total compensation'' includes salary, bonuses, awards of 
stock, and other financial benefits provided by an air carrier 
to an officer or employee of the air carrier.]

           *       *       *       *       *       *       *

SEC. 107. DEFINITIONS.

  In this title, the following definitions apply:
          (1)  * * *
          [(2) Federal credit instrument.--The term ``Federal 
        credit instrument'' means any guarantee or other pledge 
        by the Board issued under section 101(a)(1) to pledge 
        the full faith and credit of the United States to pay 
        all or part of any of the principal of and interest on 
        a loan or other debt obligation issued by an obligor 
        and funded by a lender.]

           *       *       *       *       *       *       *

  UNIVERSAL SERVICE ANTIDEFICIENCY TEMPORARY SUSPENSION ACT OF 2004, 
PUBLIC LAW 108-494

           *       *       *       *       *       *       *

TITLE III

           *       *       *       *       *       *       *

SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS TO UNIVERSAL 
                    SERVICE FUND.

    (a) In General.--During the period beginning on the date of 
enactment of this Act and ending on [December 31, 2007] 
December 31, 2008, section 1341 and subchapter II of chapter 15 
of title 31, United States Code, do not apply--
            (1) to any amount collected or received as Federal 
        universal service contributions required by section 254 
        of the Communications Act of 1934 (47 U.S.C. 254), 
        including any interest earned on such contributions; 
        nor
            (2) to the expenditure or obligation of amounts 
        attributable to such contributions for universal 
        service support programs established pursuant to that 
        section.
    (b) Post-2005 Fulfillment of Protected Obligations.--
Section 1341 and subchapter II of chapter 15 of title 31, 
United States Code, do not apply after [December 31, 2007] 
December 31, 2008, to an expenditure or obligation described in 
subsection (a)(2) made or authorized during the period 
described in subsection (a).

           *       *       *       *       *       *       *

DISTRICT OF COLUMBIA OFFICIAL CODE

           *       *       *       *       *       *       *

TITLE 1--GOVERNMENT ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 2--DISTRICT OF COLUMBIA HOME RULE

           *       *       *       *       *       *       *

SUBCHAPTER IV--THE DISTRICT CHARTER

           *       *       *       *       *       *       *

PART Bi. CHIEF FINANCIAL OFFICER

           *       *       *       *       *       *       *

Sec. 1-204.24b. Appointment of the Chief Financial Officer.

(a) * * *
(b) * * *
    (5) Pay.--The Chief Financial Officer shall be paid at an 
annual rate equal to the rate of basic pay payable for [level 
I] level I times 1.50 of the Executive Schedule.

           *       *       *       *       *       *       *

TITLE 2--GOVERNMENT ADMINISTRATION

           *       *       *       *       *       *       *

CHAPTER 16--PUBLIC DEFENDER SERVICE

           *       *       *       *       *       *       *

Sec. 2-1607. Appropriation; public grants and private contributions.

  (a) [There are authorized to be appropriated through the 
Court Services and Offender Supervision Agency for the District 
of Columbia (or, until such Agency assumes its duties pursuant 
to Sec. 24-133(a), through the Trustee appointed pursuant to 
Sec. 24-132) in each fiscal year such sums as may be necessary 
to carry out this chapter. Funds appropriated pursuant to this 
subsection shall be transmitted by the Agency (or, if 
applicable, by the Trustee) to the Service.] There are 
authorized to be appropriated to the Service in each fiscal 
year such funds as may be necessary to carry out this chapter. 
The Service may arrange by contract or otherwise for the 
disbursement of appropriated funds, procurement, and the 
provision of other administrative support functions by the 
General Services Administration or by other agencies or 
entities, not subject to the provisions of the District of 
Columbia Code or any law or regulation adopted by the District 
of Columbia Government concerning disbursement of funds, 
procurement, or other administrative support functions. The 
Service shall submit an annual appropriations request to the 
Office of Management and Budget.

           *       *       *       *       *       *       *

TITLE 4--PUBLIC CARE SYSTEM

           *       *       *       *       *       *       *

CHAPTER 5--COMPENSATION OF VICTIMS OF VIOLENT CRIME

           *       *       *       *       *       *       *

SUBCHAPTER I--GENERAL

           *       *       *       *       *       *       *

Sec. 4-515. Crime Victims Compensation Fund.

    [(d) Any unobligated balance existing in the Fund as of the 
end of each fiscal year (beginning with fiscal year 2000) shall 
be transferred from the Fund to the Crime Victims Assistance 
Fund established by section 16a (D.C. Official Code Sec. 4-
515.01) and shall be available for obligation and expenditures 
without fiscal year limitations. All such expenditures shall be 
in accordance with a plan developed by the District of Columbia 
which that is submitted to the Committees on Appropriations of 
the Senate and House of Representatives, the Committee on 
Oversight and Government Reform of the House of 
Representatives, and the Committee on Homeland Security and 
Governmental Affairs of the Senate, except that under such 
plan: (1) 50 percent of such balance shall be used for direct 
compensation payments to crime victims through the Fund under 
this section and in accordance with this chapter; and (2) 50 
percent of such balance shall be transferred from the Fund to 
the Crime Victims Assistance Fund established by Sec. 4-515.01 
and shall be used without fiscal year limitation for outreach 
activities designed to increase the number of crime victims who 
apply for such direct compensation payments.]
    (d) Any unobligated balance existing in the Fund as of the 
end of each fiscal year (beginning with fiscal year 2007) shall 
be transferred from the Fund to the Crime Victims Assistance 
Fund established by section 16a (D.C. Official Code Sec. 4-
515.01) and shall be available for obligation and expenditures 
without fiscal year limitation. All such expenditures shall be 
in accordance with a plan developed by the District of Columbia 
that is submitted to the Committees on Appropriations of the 
Senate and House of Representatives, the Committee on Oversight 
and Government Reform of the House of Representatives, and the 
Committee on Homeland Security and Governmental Affairs of the 
Senate.

           *       *       *       *       *       *       *

TITLE 24--PRISONERS AND THEIR TREATMENT

           *       *       *       *       *       *       *

CHAPTER 1--TRANSFER OF PRISON SYSTEM TO FEDERAL AUTHORITY

           *       *       *       *       *       *       *

SUBCHAPTER III--OFFENDER SUPERVISION AND PAROLE

           *       *       *       *       *       *       *

Sec. 24-133. Court Services and Offender Supervision Agency.

  (a) * * *

           *       *       *       *       *       *       *

  [(f) Receipt and Transmittal of Appropriations for Public 
Defender Service.--The Director of the Agency shall receive and 
transmit to the District of Columbia Public Defender Service 
all funds appropriated for such agency.]

           *       *       *       *       *       *       *

                                            BUDGETARY IMPACT OF BILL
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays
                                                             ---------------------------------------------------
                                                               Committee    Amount  of   Committee    Amount  of
                                                               allocation      bill      allocation      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
 to its subcommittees of budget totals for 2008:
 Subcommittee on Financial Services and General Government:
    Mandatory...............................................       21,394       21,394       21,388    \1\21,388
    Discretionary...........................................       21,394       21,800       21,625    \1\21,508
Projections of outlays associated with the recommendation:
    2008....................................................  ...........  ...........  ...........    \2\38,439
    2009....................................................  ...........  ...........  ...........        3,047
    2010....................................................  ...........  ...........  ...........          612
    2011....................................................  ...........  ...........  ...........          383
    2012 and future years...................................  ...........  ...........  ...........          343
Financial assistance to State and local governments for                NA          638           NA          435
 2008.......................................................
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
\2\Excludes outlays from prior-year budget authority.

NA: Not applicable.

NOTE. Consistent with the funding recommended in the bill for tax enforcement and in accordance with section
  207(c)(2)(B) of Senate Concurrent Resolution 21 (110th Congress), the Committee anticipates that the Budget
  Committee will file a revised section 302(a) allocation for the Committee on Appropriations reflecting an
  upward adjustment of $406,000,000 in budget authority and associated outlays.

  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2007 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2008
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Senate Committee recommendation compared with  (+
                                                                                                                             or -)
               Item                      2007       Budget estimate  House allowance     Committee    --------------------------------------------------
                                    appropriation                                      recommendation        2007
                                                                                                        appropriation   Budget estimate  House allowance
--------------------------------------------------------------------------------------------------------------------------------------------------------

    TITLE I--DEPARTMENT OF THE

       Departmental Offices

Salaries and expenses............         216,348          250,141          250,591          251,641          +35,293           +1,500           +1,050
    Executive direction..........         (10,753)          (9,636)         (10,115)         (11,136)           (+383)         (+1,500)         (+1,021)
    General Counsel..............          (8,713)         (10,179)          (9,700)         (10,179)         (+1,466)  ...............           (+479)
    Economic policies and                 (36,154)         (45,450)         (45,450)         (45,450)         (+9,296)  ...............  ...............
     programs....................
    Financial policies and                (24,632)         (28,869)         (29,069)         (28,869)         (+4,237)  ...............           (-200)
     programs....................
    Terrorism and Financial               (43,457)         (56,225)         (56,475)         (56,225)        (+12,768)  ...............           (-250)
     Intelligence................
    Treasury-wide management.....         (17,837)         (20,810)         (19,010)         (20,810)         (+2,973)  ...............         (+1,800)
    Administration...............         (74,802)         (78,972)         (80,772)         (78,972)         (+4,170)  ...............         (-1,800)

Department-wide systems and                30,268           18,710           18,710           18,710          -11,558   ...............  ...............
 capital investments programs....
Office of Inspector General......          16,957           18,450           18,450           18,450           +1,493   ...............  ...............
Treasury Inspector General for            132,861          140,533          140,533          140,533           +7,672   ...............  ...............
 Tax Administration..............
Air transportation stabilization   ...............          -3,600           -3,600           -3,600           -3,600   ...............  ...............
 program account.................
Financial Crimes Enforcement               73,216           85,844           83,344           85,844          +12,628   ...............          +2,500
 Network.........................
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal, Departmental             (469,650)        (510,078)        (508,028)        (511,578)        (+41,928)         (+1,500)         (+3,550)
       Offices...................

Financial Management Service.....         235,381          235,191          234,423          235,191             -190   ...............            +768
Alcohol and Tobacco Tax and Trade          90,618           93,515           93,515           97,015           +6,397           +3,500           +3,500
 Bureau: Salaries and expenses...
Bureau of the Public Debt........         177,623          172,871          172,871          172,871           -4,752   ...............  ...............
Community development financial            54,506           28,557          100,000           90,000          +35,494          +61,443          -10,000
 institutions fund program
 account.........................
Payment of government losses in               500            1,000            1,000            1,000             +500   ...............  ...............
 shipment........................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Dept. of Treasury,         1,028,278        1,041,212        1,109,837        1,107,655          +79,377          +66,443           -2,182
       non-IRS...................

     Internal Revenue Service

Taxpayer services................       2,138,238        2,103,089        2,155,000        2,149,200          +10,962          +46,111           -5,800
Enforcement......................       4,686,478        4,925,498        4,925,498        4,925,498         +239,020   ...............  ...............
Operations support...............       3,544,835        3,769,587        3,769,587        3,769,587         +224,752   ...............  ...............
Business systems modernization...         212,659          282,090          282,090          282,090          +69,431   ...............  ...............
Health Insurance Tax Credit                14,856           15,235           15,235           15,235             +379   ...............  ...............
 Administration..................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Internal Revenue          10,597,066       11,095,499       11,147,410       11,141,610         +544,544          +46,111           -5,800
       Service...................
                                  ======================================================================================================================
      Total, title I, Department       11,625,344       12,136,711       12,257,247       12,249,265         +623,921         +112,554           -7,982
       of the Treasury...........
                                  ======================================================================================================================

TITLE II--EXECUTIVE OFFICE OF THE
 PRESIDENT AND FUNDS APPROPRIATED
         TO THE PRESIDENT

         The White House

Salaries and expenses............  ...............         186,920   ...............  ...............  ...............        -186,920   ...............
    Compensation of the President  ...............             450   ...............  ...............  ...............            -450   ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Salaries and          ...............         187,370   ...............  ...............  ...............        -187,370   ...............
       expenses..................

Compensation of the President and
 the White House Office:
    Compensation of the President             450   ...............             450              450   ...............            +450   ...............
    Salaries and expenses........          53,616   ...............          53,156           51,656           -1,960          +51,656           -1,500
Executive Residence at the White
 House:
    Operating expenses...........          12,398   ...............          12,814           12,814             +416          +12,814   ...............
    White House repair and                  1,683   ...............           1,600            1,600              -83           +1,600   ...............
     restoration.................
Council of Economic Advisers.....           4,032   ...............           4,118            4,118              +86           +4,118   ...............
Office of Policy Development.....           3,487   ...............           3,482            3,482               -5           +3,482   ...............
National Security Council........           8,684   ...............           8,640            8,640              -44           +8,640   ...............
Privacy and Civil Liberties        ...............  ...............  ...............           2,000           +2,000           +2,000           +2,000
 Oversight Board.................
Office of Administration.........          88,643   ...............          92,829           92,829           +4,186          +92,829   ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, The White House.....         172,993          187,370          177,089          177,589           +4,596           -9,781             +500
Office of Management and Budget..          76,714           70,866           78,394           78,394           +1,680           +7,528   ...............

 Office of National Drug Control
              Policy

Office of National Drug Control            26,766           23,883           26,636           25,152           -1,614           +1,269           -1,484
 Policy, S&E.....................
Counterdrug Technology Assessment          20,000            5,000           10,000   ...............         -20,000           -5,000          -10,000
 Center..........................
High intensity drug trafficking           224,730          220,000          226,000          235,000          +10,270          +15,000           +9,000
 areas program...................
Other Federal drug control                192,951          224,485          197,800          204,735          +11,784          -19,750           +6,935
 programs........................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Office of Drug               464,447          473,368          460,436          464,887             +440           -8,481           +4,451
       Control Policy............

Unanticipated needs..............             990            1,000            1,000            1,000              +10   ...............  ...............
Special Assistance to the
 President and Official Residence
 of the Vice President:
    Salaries and expenses........           4,432            4,432            4,432            4,432   ...............  ...............  ...............
    Operating expenses...........             322              320              320              320               -2   ...............  ...............
                                  ======================================================================================================================
      Total, title II, Executive          719,898          737,356          721,671          726,622           +6,724          -10,734           +4,951
       Office of the President
       and Funds Appropriated to
       the President.............
                                  ======================================================================================================================
     TITLE III--THE JUDICIARY

   Supreme Court of the United
              States

Salaries and expenses:
    Salaries of justices.........           2,000            2,149            2,149            2,149             +149   ...............  ...............
    Other salaries and expenses..          60,576           64,377           64,377           64,373           +3,797               -4               -4
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................         (62,576)         (66,526)         (66,526)         (66,522)         (+3,946)             (-4)             (-4)

Care of the building and grounds.          11,427           12,201           12,201           12,201             +774   ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Supreme Court of the          74,003           78,727           78,727           78,723           +4,720               -4               -4
       United States.............

  United States Court of Appeals
     for the Federal Circuit

Salaries and expenses:
    Salaries of judges...........           2,000            2,431            2,431            2,431             +431   ...............  ...............
    Other salaries and expenses..          23,311           26,107           25,545           25,007           +1,696           -1,100             -538
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, U.S. Court of                 25,311           28,538           27,976           27,438           +2,127           -1,100             -538
       Appeals for the Federal
       Circuit...................

      United States Court of
       International Trade

Salaries and expenses:
    Salaries of judges...........           2,000            1,765            1,765            1,765             -235   ...............  ...............
    Other salaries and expenses..          13,825           14,962           14,779           14,867           +1,042              -95              +88
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, U.S. Court of                 15,825           16,727           16,544           16,632             +807              -95              +88
       International Trade.......

   Courts of Appeals, District
    Courts, and Other Judicial
             Services

Salaries and expenses:
    Salaries of judges and                316,000          332,434          332,434          332,434          +16,434   ...............  ...............
     bankruptcy judges...........
    Judges COLA..................  ...............           5,000   ...............           5,000           +5,000   ...............          +5,000
    Other salaries and expenses..       4,160,569        4,517,021        4,328,156        4,372,557         +211,988         -144,464          +44,401
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal, Salaries and           (4,476,569)      (4,854,455)      (4,660,590)      (4,709,991)       (+233,422)       (-144,464)        (+49,401)
       expenses..................

Vaccine Injury Compensation Trust           3,952            4,099            4,099            4,099             +147   ...............  ...............
 Fund............................
Defender services................         776,283          859,834          830,499          840,601          +64,318          -19,233          +10,102
Fees of jurors and commissioners.          60,945           62,350           62,350           63,081           +2,136             +731             +731
Court security...................         378,663          421,789          396,476          412,720          +34,057           -9,069          +16,244
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Courts of Appeals,         5,696,412        6,202,527        5,954,014        6,030,492         +334,080         -172,035          +76,478
       District Courts, and Other
       Judicial Services.........

   Administrative Office of the
       United States Courts

Salaries and expenses............          72,377           78,536           75,667           78,536           +6,159   ...............          +2,869

     Federal Judicial Center

Salaries and expenses............          22,874           24,835           23,994           24,475           +1,601             -360             +481

    Judicial Retirement Funds

Payment to judiciary trust funds.          58,300           65,400           65,400           65,400           +7,100   ...............  ...............

     United States Sentencing
            Commission

Salaries and expenses............          14,601           16,191           15,477           15,477             +876             -714   ...............
                                  ======================================================================================================================
      Total, title III, the             5,979,703        6,511,481        6,257,799        6,337,173         +357,470         -174,308          +79,374
       Judiciary.................
          Mandatory                      (380,300)        (404,179)        (404,179)        (404,179)        (+23,879)  ...............  ...............
           appropriations........
          Discretionary                (5,599,403)      (6,107,302)      (5,853,620)      (5,932,994)       (+333,591)       (-174,308)        (+79,374)
           appropriations........
                                  ======================================================================================================================

  TITLE IV--DISTRICT OF COLUMBIA

          FEDERAL FUNDS

Federal payment for Resident               32,868           35,100           35,100           33,000             +132           -2,100           -2,100
 Tuition Support.................
Federal payment for Emergency               8,533            3,000            3,352            3,352           -5,181             +352   ...............
 Planning and Security Costs in
 the District of Columbia........
Federal payment to the District           216,723          213,861          256,395          217,318             +595           +3,457          -39,077
 of Columbia Courts..............
Defender Services in District of           43,475           43,475           52,475           43,475   ...............  ...............          -9,000
 Columbia Courts.................
Federal payment to the Court              179,603          190,343          190,343          190,791          +11,188             +448             +448
 Services and Offender
 Supervision Agency for the
 District of Columbia............
Federal payment to the District            31,103           32,710           32,710           32,710           +1,607   ...............  ...............
 of Columbia Public Defender
 Service.........................
Federal payment to the District             6,930           12,000           12,000           12,000           +5,070   ...............  ...............
 of Columbia Water and Sewer
 Authority.......................
Federal payment for the Anacostia           2,970   ...............  ...............  ...............          -2,970   ...............  ...............
 Waterfront Initiative...........
Federal payment to the Criminal             1,287            1,300            1,300            1,300              +13   ...............  ...............
 Justice Coordinating Council....
Federal payment for                           990   ...............  ...............  ...............            -990   ...............  ...............
 Transportation Assistance.......
Federal payment for Foster Care             1,980   ...............  ...............  ...............          -1,980   ...............  ...............
 Improvements in the District of
 Columbia........................
Federal payment to the Office of           20,000   ...............           6,148   ...............         -20,000   ...............          -6,148
 the Chief Financial Officer of
 the District of Columbia........
Federal payment for School                 39,600           40,800           40,800           40,800           +1,200   ...............  ...............
 Improvement.....................
Federal payment for Consolidated            4,950           10,000           10,000           10,000           +5,050   ...............  ...............
 Laboratory Facility.............
Federal payment for Central        ...............          10,000           10,000           10,000          +10,000   ...............  ...............
 Library/branch locations........
Federal payment to reimburse the   ...............           5,000            4,000            5,000           +5,000   ...............          +1,000
 FBI.............................
Federal payment to the Executive   ...............  ...............  ...............          14,000          +14,000          +14,000          +14,000
 Office of the Mayor.............
                                  ======================================================================================================================
      Total, Title IV, District           591,012          597,589          654,623          613,746          +22,734          +16,157          -40,877
       of Columbia...............
                                  ======================================================================================================================

    TITLE V--OTHER INDEPENDENT
             AGENCIES

Commodity Futures Trading                  97,981          116,000   ...............         116,000          +18,019   ...............        +116,000
 Commission......................
Consumer Product Safety                    62,728           63,250           66,838           70,000           +7,272           +6,750           +3,162
 Commission......................

  Election Assistance Commission

Salaries and expenses............          16,263           15,467           15,467           16,517             +254           +1,050           +1,050
Election Reform Programs.........  ...............  ...............         300,950   ...............  ...............  ...............        -300,950
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Election Assistance           16,263           15,467          316,417           16,517             +254           +1,050         -299,900
       Commission................

Federal Communications Commission

Salaries and expenses............         291,282          313,000          313,000          313,000          +21,718   ...............  ...............
Transfer from USF for OIG audits   ...............         (20,480)         (20,980)         (20,480)        (+20,480)  ...............           (-500)
 (by transfer)...................
Offsetting fee collections--             -290,295         -312,000         -312,000         -312,000          -21,705   ...............  ...............
 current year....................
                                  ----------------------------------------------------------------------------------------------------------------------
    Direct appropriation.........             987            1,000            1,000            1,000              +13   ...............  ...............

Federal Deposit Insurance                 (30,690)         (26,848)         (26,848)         (26,848)         (-3,842)  ...............  ...............
 Corporation: Office of Inspector
 General (by trans-  fer)........
Federal Election Commission......          54,528           59,224           59,224           59,224           +4,696   ...............  ...............
Federal Labor Relations Authority          25,372           23,718           23,641           23,718           -1,654   ...............             +77

     Federal Trade Commission

Salaries and expenses............         211,289          240,239          247,489          240,239          +28,950   ...............          -7,250
Offsetting fee collections--             -129,000         -144,600         -139,000         -144,600          -15,600   ...............          -5,600
 current year....................
Offsetting fee collections,               -23,000          -19,000          -20,000          -19,000           +4,000   ...............          +1,000
 telephone database..............
                                  ----------------------------------------------------------------------------------------------------------------------
    Direct appropriation.........          59,289           76,639           88,489           76,639          +17,350   ...............         -11,850

 General Services Administration

      Federal Buildings Fund

Appropriations...................         (93,586)        (344,450)         (88,144)        (624,901)       (+531,315)       (+280,451)       (+536,757)
Limitations on availability of
 revenue:
    Construction and acquisition          701,137          615,204          524,540          894,992         +193,855         +279,788         +370,452
     of facilities...............
    Repairs and alterations......         618,241          804,483          733,267          804,483         +186,242   ...............         +71,216
    Installment acquisition               163,999          155,781          155,781          155,781           -8,218   ...............  ...............
     payments....................
    Rental of space..............       4,067,881        4,383,000        4,315,534        4,383,000         +315,119   ...............         +67,466
    Building operations..........       2,003,830        2,132,450        2,105,490        2,132,450         +128,620   ...............         +26,960
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................      (7,555,088)      (8,090,918)      (7,834,612)      (8,370,706)       (+815,618)       (+279,788)       (+536,094)

Repayment of debt................          43,338           50,804           50,804           50,804           +7,466   ...............  ...............
Rental income to fund............      -7,845,000       -7,916,272       -7,916,272       -7,916,272          -71,272   ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Federal Buildings           -246,574          225,450          -30,856          505,238         +751,812         +279,788         +536,094
       Fund......................

Policy and operations............  ...............         144,338          134,945   ...............  ...............        -144,338         -134,945
Government-wide policy...........          52,346   ...............  ...............          64,791          +12,445          +64,791          +64,791
Operating expenses...............          83,176   ...............  ...............          89,547           +6,371          +89,547          +89,547
Office of Inspector General......          52,621           47,382           53,382           52,682              +61           +5,300             -700
Electronic Government Fund.......           2,970            5,000            2,970            5,000           +2,030   ...............          +2,030
Allowances and Office Staff for             2,922            2,500            2,500            2,500             -422   ...............  ...............
 Former Presidents...............
Federal Citizen Information                14,874           17,790           15,798           17,790           +2,916   ...............          +1,992
 Center Fund.....................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, General Services             -37,665          442,460          178,739          737,548         +775,213         +295,088         +558,809
       Administration............

  Merit Systems Protection Board

Salaries and expenses............          36,063           37,507           37,507           37,507           +1,444   ...............  ...............
Limitation on administrative                2,603            2,579            2,579            2,579              -24   ...............  ...............
 expenses........................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Merit Systems                 38,666           40,086           40,086           40,086           +1,420   ...............  ...............
       Protection Board..........

    Morris K. Udall Foundation

Morris K. Udall Trust Fund.......           1,984   ...............           2,000            3,750           +1,766           +3,750           +1,750
Environmental Dispute Resolution            1,896              750            2,000            2,000             +104           +1,250   ...............
 Fund............................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Morris K. Udall                3,880              750            4,000            5,750           +1,870           +5,000           +1,750
       Foundation................

  National Archives and Records
          Administration

Operating expenses...............         279,338          312,874          315,000          313,911          +34,573           +1,037           -1,089
    Reduction of debt............         -10,026          -10,896          -10,896          -10,896             -870   ...............  ...............
Electronic records archive.......          45,254           58,028           58,028           58,028          +12,774   ...............  ...............
Repairs and restoration..........           9,120            8,663           16,095           25,173          +16,053          +16,510           +9,078
National Historical Publications            7,425   ...............          10,000           10,000           +2,575          +10,000   ...............
 and Records Commission: Grants
 program.........................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, National Archives            331,111          368,669          388,227          396,216          +65,105          +27,547           +7,989
       and Records Administration

      National Credit Union
          Administration

Central liquidity facility:
    (Limitation on direct loans).      (1,500,000)      (1,500,000)      (1,500,000)      (1,500,000)  ...............  ...............  ...............
    (Limitation on admin                     (323)            (329)            (329)            (329)             (+6)  ...............  ...............
     expenses, corporate funds)..
Community development credit                  941              950            1,000              950               +9   ...............             -50
 union revolving loan fund.......
Office of Government Ethics......          11,115           11,750           11,750           11,750             +635   ...............  ...............

  Office of Personnel Management

Salaries and expenses............         111,605          101,765          101,765          101,765           -9,840   ...............  ...............
    Limitation on administrative          112,546          111,936          123,401          124,401          +11,855          +12,465           +1,000
     expenses....................
Office of Inspector General......           2,061            1,519            1,519            1,519             -542   ...............  ...............
    Limitation on administrative           16,278           16,481           16,981           17,081             +803             +600             +100
     expenses....................
Govt Payment for Annuitants,            8,780,260        8,884,000        8,884,000        8,884,000         +103,740   ...............  ...............
 Employees Health Benefits.......
Govt Payment for Annuitants,               39,000           41,000           41,000           41,000           +2,000   ...............  ...............
 Employee Life Insurance.........
Payment to Civil Svc Retirement        10,532,000       11,941,000       11,941,000       11,941,000       +1,409,000   ...............  ...............
 and Disability Fund.............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Office of Personnel       19,593,750       21,097,701       21,109,666       21,110,766       +1,517,016          +13,065           +1,100
       Management................

Office of Special Counsel........          15,524           16,368           16,368           16,368             +844   ...............  ...............

     Securities and Exchange
            Commission

Salaries and expenses............         892,560          905,330          908,442          905,330          +12,770   ...............          -3,112
Prior year unobligated balances..         -25,000          -30,330          -41,397          -41,397          -16,397          -11,067   ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Direct appropriation.......         867,560          875,000          867,045          863,933           -3,627          -11,067           -3,112

Selective Service System.........          24,850           22,000           22,000           22,000           -2,850   ...............  ...............

  Small Business Administration

Salaries and expenses............         327,592          310,103          346,553          412,103          +84,511         +102,000          +65,550
    Rescission (unobligated                -6,100   ...............  ...............  ...............          +6,100   ...............  ...............
     balances)...................
Office of Inspector General......          13,835           15,000           15,000           15,000           +1,165   ...............  ...............
    By transfer from Disaster              (1,485)            (500)            (500)  ...............         (-1,485)           (-500)           (-500)
     Loans Program account.......

Surety bond guarantees revolving            2,824            3,000            3,000            3,000             +176   ...............  ...............
 fund............................

Business Loans Program Account:
    Direct loans subsidy.........           1,283   ...............           2,530            2,000             +717           +2,000             -530
    Guaranteed loans subsidy.....  ...............  ...............          80,000   ...............  ...............  ...............         -80,000
    Administrative expenses......         124,862          135,414          135,414          135,414          +10,552   ...............  ...............
    Rescission (unobligated                -5,000   ...............  ...............  ...............          +5,000   ...............  ...............
     balances)...................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Business loans               121,145          135,414          217,944          137,414          +16,269           +2,000          -80,530
       program account...........

Disaster Loans Program Account:
    Direct loans subsidy.........  ...............  ...............  ...............  ...............  ...............  ...............  ...............
    Administrative expenses (by    ...............        (156,000)  ...............  ...............  ...............       (-156,000)  ...............
     transfer)...................
    Administrative expenses......         114,931   ...............  ...............  ...............        -114,931   ...............  ...............
    Rescission (unobligated                -2,300   ...............  ...............  ...............          +2,300   ...............  ...............
     balances)...................
    Disaster Relief, FEMA          ...............       (-200,000)           (-500)  ...............  ...............       (+200,000)           (+500)
     (transfer out)..............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Disaster loans               112,631   ...............  ...............  ...............        -112,631   ...............  ...............
       program account...........
          (by transfer)..........  ...............        (156,000)  ...............  ...............  ...............       (-156,000)  ...............
          (transfer out).........  ...............       (-200,000)           (-500)  ...............  ...............       (+200,000)           (+500)
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Small Business               571,927          463,517          582,497          567,517           -4,410         +104,000          -14,980
       Administration............

   United States Postal Service

Payment to the Postal Service              29,000   ...............  ...............          29,000   ...............         +29,000          +29,000
 Fund............................
Advance appropriations...........          79,915           88,864           88,864           88,864           +8,949   ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, United States Postal         108,915           88,864           88,864          117,864           +8,949          +29,000          +29,000
       Service...................

United States Tax Court..........          47,625           45,326           45,069           45,326           -2,299   ...............            +257
                                  ======================================================================================================================
      Total, title V, Independent      21,895,347       23,828,739       23,910,920       24,299,172       +2,403,825         +470,433         +388,252
       Agencies..................
          Appropriations.........     (21,828,832)     (23,739,875)     (23,822,056)     (24,210,308)     (+2,381,476)       (+470,433)       (+388,252)
          Rescissions............        (-13,400)  ...............  ...............  ...............        (+13,400)  ...............  ...............
          Advances...............         (79,915)         (88,864)         (88,864)         (88,864)         (+8,949)  ...............  ...............
          (by transfer)..........         (32,175)        (203,828)         (48,328)         (47,328)        (+15,153)       (-156,500)         (-1,000)
          (transfer out).........  ...............       (-200,000)           (-500)  ...............  ...............       (+200,000)           (+500)
                                  ======================================================================================================================
      Grand total................      40,811,304       43,811,876       43,802,260       44,225,978       +3,414,674         +414,102         +423,718
          Appropriations.........     (40,744,789)     (43,723,012)     (43,713,396)     (44,137,114)     (+3,392,325)       (+414,102)       (+423,718)
          Rescissions............        (-13,400)  ...............  ...............  ...............        (+13,400)  ...............  ...............
          Advances...............         (79,915)         (88,864)         (88,864)         (88,864)         (+8,949)  ...............  ...............
          (by transfer)..........         (32,175)        (203,828)         (48,328)         (47,328)        (+15,153)       (-156,500)         (-1,000)
          (transfer out).........  ...............       (-200,000)           (-500)  ...............  ...............       (+200,000)           (+500)
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