36–638 PDF 

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 

R E P O R T 

[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 
(2) 

C O N T E N T S 

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 
Page

3 

Title III—Continued 

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 Senate .......................................................................................................................... 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 
(4) 

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 

Agency President’s 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 
5 

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 
6 

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 
7 

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, local-
8 

ity 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’’. 
(9) 

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. 
10 

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 2007 enacted 2008 budget es- timate Committee 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 
11 

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 
12 

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 ef-
13 

forts. 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. 
14 

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. 

DSCIP Initiative Fiscal year 2007 

enacted 

Fiscal year 2008 

requested 

Committee 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 ad-
15 

ministration 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 
16 

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 
17 

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 plan-
18 

ning, 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 Governmentwide 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 
19 

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 
20 

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. 
21 

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 Gov-
22 

ernment’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 
23 

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 
24 

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 Serv- ices, 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 
25 

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. 
26 

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 
27 

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 
28 

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- 
29 

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 Sup- port 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 
30 

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. 
31 

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. 
32 

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. 
33 

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. 
(34) 

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 

1The 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 Presi-
35 

dent 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 

1The 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 

1The 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. 
36 

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 

1The 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 

1The 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, 
37 

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 

1The 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. 
38 

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 

1The 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. 
39 

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) 
40 

Amount FTEs 

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 Campaign ........................................................... 825,000 6 

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 
41 

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 ................................................................. ........................... 
42 

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 
43 

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 
44 

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 
45 

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 AntiDoping 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 cir-
46 

cumvent 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 
47 

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. 
(48) 

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. 
49 

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 
50 

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. 
51 

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 Of-
52 

fice 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 
53 

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). 
54 

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 ad-
55 

ministration 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. 
56 

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. 
(57) 

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, addi-
58 

tional 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 roundthe-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 Co-
59 

lumbia 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. 
60 

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 ReEntry 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 re-
61 

mains 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 
62 

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. 
63 

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 
64 

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. 
65 

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 re-
66 

quests 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 Co- lumbia 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 
67 

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. 
(68) 

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 

1This 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, 
69 

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 missioncritical 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 twothirds 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. 
70 

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 

1The 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. 
71 

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. 
72 

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. 
73 

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 parttime 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 inju-
74 

rious 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 rec- ommendation 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 DoNot-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 
75 

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. 
76 

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 
77 

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 prospectuslevel 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 Governmentowned 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 
78 

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. Courthouse .......................................................................... $2,600,000 The Judiciary, Shelby 

AL Tuscaloosa, Federal Building .................................................................. 21,000,000 Shelby 

AZ San Luis, Land Port of Entry I ................................................................ 7,053,000 The President 

CA San Ysidro, Land Port of Entry ............................................................... 37,742,000 The President, Feinstein 

CA San Diego, U.S. Courthouse .................................................................... 80,000,000 The Judiciary 

CA San Jose, U.S. Courthouse ...................................................................... 32,000,000 The Judiciary 

DC DHS consolidation and development of St. Elizabeths campus ............ 318,887,000 The President 

DC St. Elizabeths West Campus Infrastructure ........................................... 20,752,000 The President 

DC St. Elizabeths West Campus Site Acquisition ........................................ 7,000,000 The President 

GA Savannah, U.S. Courthouse Annex .......................................................... 2,059,000 The Judiciary 

IL Rockford, U.S. Courthouse ...................................................................... 58,792,000 The Judiciary, Durbin 

ME Madawaska, Land Port of Entry ............................................................. 17,160,000 The President 

MD Montgomery County, FDA consolidation .................................................. 57,749,000 The President, Cardin, 

Mikulski 

MO Jefferson City, United States Courthouse ............................................... 66,000,000 The Judiciary, Bond 

MN Warroad, Land Port of Entry ................................................................... 43,628,000 The President 

NY Alexandria Bay, Land Port of Entry ........................................................ 11,676,000 The President 

TX El Paso, Tronillo-Guadalupe .................................................................... 4,290,000 The President 

TX San Antonio, U.S. Courthouse ................................................................. 18,000,000 The Judiciary, 

Hutchison 

VT Derby Line, Land Port of Entry ............................................................... 33,139,000 The President, Leahy

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 
79 

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 Office Building Phase III ..................................... $172,279,000 The President 

DC Joint Operations Center ........................................................................... 12,800,000 The President 

DC Nebraska Avenue Complex ...................................................................... 27,673,000 The President 

NV Reno, C. Clifton Young Federal Building and Courthouse ..................... 12,793,000 The President 

NY Thurgood Marshall U.S. Courthouse ....................................................... 170,544,000 The President 

WV Martinsburg, IRS Enterprise Computing Center ..................................... 35,822,000 The President 
80 

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 
81 

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 ‘‘Governmentwide Policy’’ and ‘‘Operating Expenses.’’ 

PROGRAM DESCRIPTION

The Office of Government-wide Policy provides for Governmentwide 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 
82 

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 ‘‘Governmentwide 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 
83 

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 ‘‘egov’’ 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. 
84 

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. 
85 

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. 
86 

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. 
87 

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. 
88 

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 co-
89 

operation 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. 
90 

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 res- toration 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 Records Center .................................................. 2,000,000 Stevens 

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 com-
91 

prehensive 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. 
92 

NATIONAL CREDIT UNION ADMINISTRATION

CENTRAL LIQUIDITY FACILITY

Direct loan limitation Administrative 

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 
93 

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. 
94 

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 
95 

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 demonstrable 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 
96 

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 econ-
97 

omy, 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. 
98 

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. 
99 

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 in-
100 

vestigations, 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 
101 

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 con-
102 

tinuing 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 rec- ommendation 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 Business, Business Library and Career Resource 

Center.

$300,000 Shelby 

AL Alabama Entrepreneurial Research Network, Small Business Incubator, Tuscaloosa, AL.300,000 Shelby 

AL Alabama Small Business Institute of Commerce, Small Business Incubator, Rainbow City, AL.250,000 Shelby 

AL Shoals Entrepreneurial Career Network Renovation, Small Business Incubator, Florence, AL.225,000 Shelby 

AL Alabama A&M Research Institute for Small Business Training and 

Development.

225,000 Shelby 

AR University of Arkansas Research and Technology Park ......................... 500,000 Lincoln; Pryor 

CA Grow Inglewood small business loan program, Inglewood, CA ............. 500,000 Feinstein 

CO Colorado State University Sustainable Biofuels Development Center .. 350,000 Salazar 

CT Women’s Business Development Center, Stamford, CT ......................... 300,000 Lieberman 

DE First State Innovation, Inc. for business development organization focused on high tech businesses, Wilmington, DE.500,000 Biden; Carper 

FL Florida Business Continuity and Risk Management Center, Pensacola, 

FL.

500,000 Bill Nelson 

IL Franklin Hospital archiving and communications system, Benton, IL .. 400,000 Durbin 

IL Business incubator, Illinois State University .......................................... 250,000 Durbin 

IL Illinois Department of Commerce and Economic Opportunity for statewide broadband infrastructure and connectivity, Springfield, IL.1,500,000 Durbin 

IL Safer Foundation for transitional employment placement, Chicago, 

IL.

300,000 Durbin 

IL Uhlich Children’s Advantage Network for job training, placement and 

retention services, Chicago, IL.

250,000 Durbin 

IL First responder education initiative, Benedictine University, Lisle, IL ... 750,000 Obama 

IL Federation of Independent Illinois Colleges and Universities for training to address workforce shortage in nursing and allied health, 

Springfield, IL.

250,000 Obama 

IN Indiana State University, City of Terre Haute, and the Rose Hulman 

Institute of Technology for business incubator, Terre Haute, IN.

500,000 Bayh 

IA Entrepreneurial Development Center business accelerator, Cedar Rapids, IA.500,000 Harkin 
103 

State Description Amount Requested by 

IA Student Business Incubator at the University of Northern Iowa, Cedar 

Falls, IA.

500,000 Grassley 

KS Community Child Care Facility for the facilitation of Daycare needs of 

small businesses in the area, Manhattan, KS.

500,000 Roberts 

KS Technical Education and Training Center, Sedgwick County, KS .......... 1,000,000 Brownback 

KS South Topeka Boulevard Business Corridor for infrastructure upgrades, Topeka, KS.1,000,000 Brownback 

KS Equipment for Pharmaceutical Small Business Development at the 

University of Kansas.

750,000 Brownback 

KS Technology Entrepreneurship Development at the Kansas Technology 

Enterprise Corporation, Topeka, KS.

400,000 Brownback 

KY University of Kentucky/New Product Development and Commercialization Center for Rural Manufacturers.1,000,000 McConnell 

LA Women’s Business Resource Center, New Orleans, LA .......................... 45,000 Landrieu 

LA Northeast Louisiana Business and Community Development Center, 

University of Louisiana at Monroe.

250,000 Landrieu 

LA Grambling State University Expanding Minority Entrepreneurship Regionally Across the Louisiana Delta [EMERALD] Program (Lincoln 

Parish).

250,000 Landrieu 

LA Maritime Business Training Center for Construction of a Training Facility, Covington, LA.150,000 Vitter 

LA Southeastern Louisiana University Hispanic Business and Leadership 

Institute, Hammond, LA.

100,000 Vitter 

MD Small business trade assistance office, Prince George’s County, MD .. 350,000 Cardin 

MA Tribal Governance and Economic Development Center, Mashpee, MA .. 350,000 Kennedy; Kerry 

MI Economic Development Coalition of Southeast Michigan for business 

accelerator, Wayne County, MI.

300,000 Levin; Stabenow 

MS Pontotoc/Union/Lee County Alliance for industrial park development 

and small business assistance.

1,500,000 Cochran 

MS Mississippi Technology Alliance Center for Innovation and Entrepreneurial Alliances.1,000,000 Cochran 

MS Industrial Outreach Center at Mississippi State University ................... 500,000 Cochran 

MS Innovation Center at the University of Mississippi for a business incubator.500,000 Cochran 

MS Jackson State University for continuation of the Lynch Street Corridor 

Redevelopment.

500,000 Cochran 

MS University of Southern Mississippi National Center for Excellence in 

Economic Development and Entrepreneurship.

500,000 Lott 

MO Hispanic Chamber of Commerce of Metropolitan St. Louis to open and 

equip a business technology research center.

500,000 Bond 

MO University of Missouri for an Asian Equities Research Center, Kansas 

City, MO.

750,000 Bond 

MT Technology Venture Center at Montana State University for statewide 

outreach for job creation, Bozeman, MT.

500,000 Baucus; Tester 

NE Center for Rural Affairs for small business training and technical assistance website, Lyons, NE.250,000 Ben Nelson 

NV Hispanic business and demographic information initiative, University 

of Nevada, Reno.

400,000 Reid 

NV Center for Entrepreneurship and Technology, Reno, NV ........................ 200,000 Reid 

NJ New Jersey Association of Women Business Owners for women’s business growth initiative, Hamilton, NJ.150,000 Lautenberg 

NJ Rowan University South Jersey Technology Park, Glassboro, NJ ............ 250,000 Lautenberg 

NJ Cedarbridge small business incubator, Lakewood, NJ ........................... 300,000 Menendez 

NM Deployment of broadband technology, Sandoval County, NM ................ 500,000 Bingaman 

NM Arrowhead Center at New Mexico State University ................................ 1,250,000 Domenici 

NM Adelante’s ACCENT School-to-Work Transition Program, Albuquerque, 

NM.

500,000 Domenici 

NY Northern Manhattan Coalition for Economic Development for business 

outreach center, New York, NY.

275,000 Schumer; Clinton 

NY City of Buffalo for microloan program for small business, Buffalo, 

NY.

500,000 Clinton; Schumer 

NC University of North Carolina for the expansion of the Morehead Destiny Project.100,000 Burr 

ND Great Plains Energy Corridor Coordinating Office, Bismarck, ND .......... 250,000 Dorgan; Conrad 

ND Nanotechnology and Applied Science Laboratory, North Dakota State 

College of Science.

150,000 Dorgan; Conrad 
104 

State Description Amount Requested by 

OR Portland State University for a science research and teaching center.500,000 Wyden 

PA Altoona-Blair County Development Corporation’s Entrepreneurial Institute, Altoona, PA.300,000 Specter 

RI Newport County Chamber of Commerce for marine trades training expansion, Newport, RI.500,000 Reed; Whitehouse 

SD The N2TEC Institute for a rural technology-based economic development program, Rapid City, SD.330,000 Johnson 

TN Pellissippi Research Centre on the Oak Ridge Corridor R&D Community, Alcoa, TN.250,000 Alexander 

TN Center for Entrepreneurial Growth, Hamilton County, TN ...................... 250,000 Alexander 

UT GAMBIT/FAST Manufacturing & Business Technology Center, Salt Lake 

City, UT.

500,000 Bennett 

VT Vermont Small Business Development Center for veterans’ business 

program, Randolph Center, VT.

300,000 Sanders 

VT Vermont Center for Emerging Technologies for a small business incubator, Burlington, VT.750,000 Leahy 

VA Virginia Center for Innovative Technology energy independence program, Herndon, VA.225,000 Webb; Warner 

VA Virginia Small Business Workforce Web Portal Project, Richmond, 

VA.

600,000 Warner; Webb 

WA Northwest Agriculture Business Center, Burlington, WA ........................ 400,000 Murray 

WA Seattle—King County Workforce Development Council for Puget Sound 

regional economic development initiative.

125,000 Murray 

WA Small business development center at Highline Community College, 

Des Moines, WA.

300,000 Cantwell 

WV Haddad Riverfront Park renovations, Charleston, WV ............................ 2,000,000 Byrd 

WV Wheeling Park Commission for a conference center at National Training Center for Public Facility Managers, Wheeling, WV.1,000,000 Byrd 

WI Northwest Enterprise Center Network for business incubators, 

Spooner, WI.

750,000 Kohl 

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. 
105 

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 
106 

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 
107 

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 
108 

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 
109 

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. 
(110) 

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. 
111 

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. 
(112) 

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. 
113 

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. 
114 

Section 733 continues the provision recognizing the U.S. AntiDoping 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. 
(115) 

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 De-
116 

partment 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. 
117 

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 
(118) 

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 
119 

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. 
120 

TITLE 5—GOVERNMENT ORGANIZATION AND 

EMPLOYEES 

* * * * * * * 

PART III—EMPLOYEES 

* * * * * * * 

SUBPART I—MISCELLANEOUS 

CHAPTER 95—PERSONNEL FLEXIBILITIES RELATING TO 

THE INTERNAL REVENUE SERVICE 

* * * * * * * 

§ 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 øOffice 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. 

* * * * * * * 

§ 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, øfor 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) * * * 

* * * * * * * 

§ 9504. Recruitment, retention, relocation incentives, and 

relocation expenses 

(a) øFor 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) øFor 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. 
121 

§ 9505. Performance awards for senior executives 

(a) øFor 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 

* * * * * * * 

§ 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 travelrelated 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 

* * * * * * * 

§ 128. Washington 

* * * * * * * 

(b) * * * 

Court for the Western District shall be held at øBellingham, Seattle, and Tacoma¿ Bellingham, Seattle, Tacoma, 

and Vancouver. 

* * * * * * * 
122 

§ 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 

* * * * * * * 

§ 3333. Relief for payments made without negligence 

(a)(1) * * * 

* * * * * * * 

ø(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. 

* * * * * * * 
123 

SUBCHAPTER V—PROCUREMENT PROTEST SYSTEM 

* * * * * * * 

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

* * * * * * * 

SUBCHAPTER V—PROCUREMENT PROTEST SYSTEM 

§ 3551. Definitions 

In this subchapter: 

(1) * * * 

ø(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. 

ø(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. 

* * * * * * * 

§ 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 sub-
124 

chapter 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 

* * * * * * * 

§ 3313. Delegation 

(a) * * * 

(1) shall, except for the authority contained in section 3305(b) 

of this title, be delegated on request to the appropriate øexecutive¿ 

federal agency when the estimated cost of the project does not ex- ceed $100,000; and 

(2) may be delegated to the appropriate øexecutive¿ 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 

* * * * * * * 

ø§ 1705. Penalties 

ø(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. 

ø(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. 
125 

(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 

* * * * * * * 

§ 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 individuallybilled 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 

øOctober 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 ø8 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 trans-
126 

lator, 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: 

ø(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.).¿ 

* * * * * * * 

øSEC. 102. AIR TRANSPORTATION STABILIZATION BOARD. 

ø(a) DEFINITIONS.—In this section, the following definitions 

apply: 

ø(1) BOARD.—The term ‘‘Board’’ means the Air Transportation Stabilization Board established under subsection (b). 

ø(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). 

ø(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— 

ø(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 

ø(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. 

ø(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. 
127 

ø(b) AIR TRANSPORTATION STABILIZATION BOARD.— ø(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). 

ø(2) COMPOSITION.—The Board shall consist of— 

ø(A) the Secretary of Transportation or the designee of 

the Secretary; 

ø(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; 

ø(C) the Secretary of the Treasury or the designee of the 

Secretary; and 

ø(D) the Comptroller General of the United States, or 

the designee of the Comptroller General, as a nonvoting 

member of the Board. 

ø(c) FEDERAL CREDIT INSTRUMENTS.— ø(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— 

ø(A) the obligor is an air carrier for which credit is not 

reasonably available at the time of the transaction; 

ø(B) the intended obligation by the obligor is prudently 

incurred; and 

ø(C) such agreement is a necessary part of maintaining 

a safe, efficient, and viable commercial aviation system in 

the United States. 

ø(2) TERMS AND LIMITATIONS.— ø(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. 

ø(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). 

ø(d) FINANCIAL PROTECTION OF GOVERNMENT.— 

ø(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. 

ø(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 instru-
128 

ments as warrants, stock options, common or preferred stock, 

or other appropriate equity instruments. 

ø(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.¿ 

* * * * * * * 

øSEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION. 

ø(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)— 

ø(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 

ø(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. 

ø(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) * * * 

ø(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 øDecember 31, 2007¿ Decem-
129 

ber 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 øDecember 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 

* * * * * * * 

§ 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 ølevel I¿ level 

I times 1.50 of the Executive Schedule. 

* * * * * * * 

TITLE 2—GOVERNMENT ADMINISTRATION 

* * * * * * * 

CHAPTER 16—PUBLIC DEFENDER SERVICE 

* * * * * * * 

§ 2–1607. Appropriation; public grants and private contributions. 

(a) øThere are authorized to be appropriated through the Court 

Services and Offender Supervision Agency for the District of Co-
130 

lumbia (or, until such Agency assumes its duties pursuant to § 24– 

133(a), through the Trustee appointed pursuant to § 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 

* * * * * * * 

§ 4–515. Crime Victims Compensation Fund. 

ø(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 § 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 § 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 estab-
131 

lished by section 16a (D.C. Official Code § 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 

* * * * * * * 

§ 24–133. Court Services and Offender Supervision Agency. 

(a) * * * 

* * * * * * * 

ø(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.¿ 

* * * * * * * 
132 

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 

allocation 

Amount 

of bill 

Committee 

allocation 

Amount 

of 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 

2008 ......................................................................................... NA 638 NA 435 

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. 
133 

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] 

Item 2007 appropria- tion Budget estimate House allowance Committee rec- ommendation 

Senate Committee recommendation compared with 

(∂ or ¥) 

2007 appropriation Budget estimate House allowance 

TITLE I—DEPARTMENT OF THE TREASURY 

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 programs .................................................................. (36,154 ) (45,450 ) (45,450 ) (45,450 ) (∂9,296 ) .......................... ..........................Financial policies and programs .................................................................. (24,632 ) (28,869 ) (29,069 ) (28,869 ) (∂4,237 ) .......................... (¥200 ) Terrorism and Financial Intelligence ............................................................ (43,457 ) (56,225 ) (56,475 ) (56,225 ) (∂12,768 ) .......................... (¥250 ) 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 capital investments programs ............................ 30,268 18,710 18,710 18,710 ¥11,558 .......................... ..........................Office of Inspector General .................................................................................... 16,957 18,450 18,450 18,450 ∂1,493 .......................... ..........................Treasury Inspector General for Tax Administration ............................................... 132,861 140,533 140,533 140,533 ∂7,672 .......................... ..........................Air transportation stabilization program account ................................................. .......................... ¥3,600 ¥3,600 ¥3,600 ¥3,600 .......................... ..........................Financial Crimes Enforcement Network ................................................................. 73,216 85,844 83,344 85,844 ∂12,628 .......................... ∂2,500 

Subtotal, Departmental Offices ................................................................ (469,650 ) (510,078 ) (508,028 ) (511,578 ) (∂41,928 ) (∂1,500 ) (∂3,550 ) 

Financial Management Service .............................................................................. 235,381 235,191 234,423 235,191 ¥190 .......................... ∂768 Alcohol and Tobacco Tax and Trade Bureau: Salaries and expenses .................. 90,618 93,515 93,515 97,015 ∂6,397 ∂3,500 ∂3,500 Bureau of the Public Debt ..................................................................................... 177,623 172,871 172,871 172,871 ¥4,752 .......................... ..........................Community development financial institutions fund program account ............... 54,506 28,557 100,000 90,000 ∂35,494 ∂61,443 ¥10,000 Payment of government losses in shipment ......................................................... 500 1,000 1,000 1,000 ∂500 .......................... ..........................

Total, Dept. of Treasury, non-IRS ............................................................. 1,028,278 1,041,212 1,109,837 1,107,655 ∂79,377 ∂66,443 ¥2,182 

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 .......................... ..........................
134 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2007 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2008—Continued 

[In thousands of dollars] 

Item 2007 appropria- tion Budget estimate House allowance Committee rec- ommendation 

Senate Committee recommendation compared with 

(∂ or ¥) 

2007 appropriation Budget estimate House allowance 

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 Administration ......................................................... 14,856 15,235 15,235 15,235 ∂379 .......................... ..........................

Total, Internal Revenue Service ................................................................ 10,597,066 11,095,499 11,147,410 11,141,610 ∂544,544 ∂46,111 ¥5,800 Total, title I, Department of the Treasury ................................................ 11,625,344 12,136,711 12,257,247 12,249,265 ∂623,921 ∂112,554 ¥7,982 

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 expenses ................................................................... .......................... 187,370 .......................... .......................... .......................... ¥187,370 ..........................

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 restoration .............................................................. 1,683 .......................... 1,600 1,600 ¥83 ∂1,600 ..........................

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 Oversight Board .......................................................... .......................... .......................... .......................... 2,000 ∂2,000 ∂2,000 ∂2,000 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 
135 

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 Policy, S&E ......................................................... 26,766 23,883 26,636 25,152 ¥1,614 ∂1,269 ¥1,484 Counterdrug Technology Assessment Center ......................................................... 20,000 5,000 10,000 .......................... ¥20,000 ¥5,000 ¥10,000 High intensity drug trafficking areas program ..................................................... 224,730 220,000 226,000 235,000 ∂10,270 ∂15,000 ∂9,000 Other Federal drug control programs .................................................................... 192,951 224,485 197,800 204,735 ∂11,784 ¥19,750 ∂6,935 

Total, Office of Drug Control Policy ......................................................... 464,447 473,368 460,436 464,887 ∂440 ¥8,481 ∂4,451 

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 Office of the President and Funds Appropriated 

to the President ................................................................................... 719,898 737,356 721,671 726,622 ∂6,724 ¥10,734 ∂4,951 

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 United States ............................................. 74,003 78,727 78,727 78,723 ∂4,720 ¥4 ¥4 

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 Appeals for the Federal Circuit ............................... 25,311 28,538 27,976 27,438 ∂2,127 ¥1,100 ¥538 
136 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2007 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2008—Continued 

[In thousands of dollars] 

Item 2007 appropria- tion Budget estimate House allowance Committee rec- ommendation 

Senate Committee recommendation compared with 

(∂ or ¥) 

2007 appropriation Budget estimate House allowance 

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 International Trade ................................................... 15,825 16,727 16,544 16,632 ∂807 ¥95 ∂88 

Courts of Appeals, District Courts, and Other Judicial Services 

Salaries and expenses: 

Salaries of judges and bankruptcy judges .................................................. 316,000 332,434 332,434 332,434 ∂16,434 .......................... ..........................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 expenses .............................................................. (4,476,569 ) (4,854,455 ) (4,660,590 ) (4,709,991 ) (∂233,422 ) (¥144,464 ) (∂49,401 ) 

Vaccine Injury Compensation Trust Fund .............................................................. 3,952 4,099 4,099 4,099 ∂147 .......................... ..........................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, District Courts, and Other Judicial Services .. 5,696,412 6,202,527 5,954,014 6,030,492 ∂334,080 ¥172,035 ∂76,478 

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 .......................... ..........................
137 

United States Sentencing Commission 

Salaries and expenses ........................................................................................... 14,601 16,191 15,477 15,477 ∂876 ¥714 ..........................

Total, title III, the Judiciary ...................................................................... 5,979,703 6,511,481 6,257,799 6,337,173 ∂357,470 ¥174,308 ∂79,374 

Mandatory appropriations ................................................................ (380,300 ) (404,179 ) (404,179 ) (404,179 ) (∂23,879 ) .......................... ..........................Discretionary appropriations ............................................................ (5,599,403 ) (6,107,302 ) (5,853,620 ) (5,932,994 ) (∂333,591 ) (¥174,308 ) (∂79,374 ) 

TITLE IV—DISTRICT OF COLUMBIA 

FEDERAL FUNDS 

Federal payment for Resident Tuition Support ...................................................... 32,868 35,100 35,100 33,000 ∂132 ¥2,100 ¥2,100 Federal payment for Emergency Planning and Security Costs in the District of 

Columbia ............................................................................................................ 8,533 3,000 3,352 3,352 ¥5,181 ∂352 ..........................

Federal payment to the District of Columbia Courts ............................................ 216,723 213,861 256,395 217,318 ∂595 ∂3,457 ¥39,077 Defender Services in District of Columbia Courts ................................................ 43,475 43,475 52,475 43,475 .......................... .......................... ¥9,000 Federal payment to the Court Services and Offender Supervision Agency for the 

District of Columbia .......................................................................................... 179,603 190,343 190,343 190,791 ∂11,188 ∂448 ∂448 

Federal payment to the District of Columbia Public Defender Service ................ 31,103 32,710 32,710 32,710 ∂1,607 .......................... ..........................Federal payment to the District of Columbia Water and Sewer Authority ........... 6,930 12,000 12,000 12,000 ∂5,070 .......................... ..........................Federal payment for the Anacostia Waterfront Initiative ...................................... 2,970 .......................... .......................... .......................... ¥2,970 .......................... ..........................Federal payment to the Criminal Justice Coordinating Council ........................... 1,287 1,300 1,300 1,300 ∂13 .......................... ..........................Federal payment for Transportation Assistance .................................................... 990 .......................... .......................... .......................... ¥990 .......................... ..........................Federal payment for Foster Care Improvements in the District of Columbia ...... 1,980 .......................... .......................... .......................... ¥1,980 .......................... ..........................Federal payment to the Office of the Chief Financial Officer of the District of 

Columbia ............................................................................................................ 20,000 .......................... 6,148 .......................... ¥20,000 .......................... ¥6,148 

Federal payment for School Improvement ............................................................. 39,600 40,800 40,800 40,800 ∂1,200 .......................... ..........................Federal payment for Consolidated Laboratory Facility .......................................... 4,950 10,000 10,000 10,000 ∂5,050 .......................... ..........................Federal payment for Central Library/branch locations .......................................... .......................... 10,000 10,000 10,000 ∂10,000 .......................... ..........................Federal payment to reimburse the FBI .................................................................. .......................... 5,000 4,000 5,000 ∂5,000 .......................... ∂1,000 Federal payment to the Executive Office of the Mayor ......................................... .......................... .......................... .......................... 14,000 ∂14,000 ∂14,000 ∂14,000 

Total, Title IV, District of Columbia ......................................................... 591,012 597,589 654,623 613,746 ∂22,734 ∂16,157 ¥40,877 

TITLE V—OTHER INDEPENDENT AGENCIES 

Commodity Futures Trading Commission .............................................................. 97,981 116,000 .......................... 116,000 ∂18,019 .......................... ∂116,000 Consumer Product Safety Commission .................................................................. 62,728 63,250 66,838 70,000 ∂7,272 ∂6,750 ∂3,162 
138 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2007 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2008—Continued 

[In thousands of dollars] 

Item 2007 appropria- tion Budget estimate House allowance Committee rec- ommendation 

Senate Committee recommendation compared with 

(∂ or ¥) 

2007 appropriation Budget estimate House allowance 

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 Commission .................................................... 16,263 15,467 316,417 16,517 ∂254 ∂1,050 ¥299,900 

Federal Communications Commission 

Salaries and expenses ........................................................................................... 291,282 313,000 313,000 313,000 ∂21,718 .......................... ..........................Transfer from USF for OIG audits (by transfer) .................................................... .......................... (20,480 ) (20,980 ) (20,480 ) (∂20,480 ) .......................... (¥500 ) Offsetting fee collections—current year ............................................................... ¥290,295 ¥312,000 ¥312,000 ¥312,000 ¥21,705 .......................... ..........................

Direct appropriation ...................................................................................... 987 1,000 1,000 1,000 ∂13 .......................... ..........................

Federal Deposit Insurance Corporation: Office of Inspector General (by transfer) ..................................................................................................................... (30,690 ) (26,848 ) (26,848 ) (26,848 ) (¥3,842 ) .......................... ..........................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—current year ............................................................... ¥129,000 ¥144,600 ¥139,000 ¥144,600 ¥15,600 .......................... ¥5,600 Offsetting fee collections, telephone database ..................................................... ¥23,000 ¥19,000 ¥20,000 ¥19,000 ∂4,000 .......................... ∂1,000 

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 ) 
139 

Limitations on availability of revenue: 

Construction and acquisition of facilities .................................................... 701,137 615,204 524,540 894,992 ∂193,855 ∂279,788 ∂370,452 Repairs and alterations ................................................................................ 618,241 804,483 733,267 804,483 ∂186,242 .......................... ∂71,216 Installment acquisition payments ................................................................ 163,999 155,781 155,781 155,781 ¥8,218 .......................... ..........................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 Fund .................................................................. ¥246,574 225,450 ¥30,856 505,238 ∂751,812 ∂279,788 ∂536,094 

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 Former Presidents .............................................. 2,922 2,500 2,500 2,500 ¥422 .......................... ..........................Federal Citizen Information Center Fund ............................................................... 14,874 17,790 15,798 17,790 ∂2,916 .......................... ∂1,992 

Total, General Services Administration .................................................... ¥37,665 442,460 178,739 737,548 ∂775,213 ∂295,088 ∂558,809 

Merit Systems Protection Board 

Salaries and expenses ........................................................................................... 36,063 37,507 37,507 37,507 ∂1,444 .......................... ..........................Limitation on administrative expenses .................................................................. 2,603 2,579 2,579 2,579 ¥24 .......................... ..........................

Total, Merit Systems Protection Board ..................................................... 38,666 40,086 40,086 40,086 ∂1,420 .......................... ..........................

Morris K. Udall Foundation 

Morris K. Udall Trust Fund .................................................................................... 1,984 .......................... 2,000 3,750 ∂1,766 ∂3,750 ∂1,750 Environmental Dispute Resolution Fund ................................................................ 1,896 750 2,000 2,000 ∂104 ∂1,250 ..........................

Total, Morris K. Udall Foundation ............................................................ 3,880 750 4,000 5,750 ∂1,870 ∂5,000 ∂1,750 

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 
140 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2007 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2008—Continued 

[In thousands of dollars] 

Item 2007 appropria- tion Budget estimate House allowance Committee rec- ommendation 

Senate Committee recommendation compared with 

(∂ or ¥) 

2007 appropriation Budget estimate House allowance 

National Historical Publications and Records Commission: Grants program ...... 7,425 .......................... 10,000 10,000 ∂2,575 ∂10,000 ..........................

Total, National Archives and Records Administration ............................. 331,111 368,669 388,227 396,216 ∂65,105 ∂27,547 ∂7,989 

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 expenses, corporate funds) ....................................... (323 ) (329 ) (329 ) (329 ) (∂6 ) .......................... ..........................

Community development credit union revolving loan fund .................................. 941 950 1,000 950 ∂9 .......................... ¥50 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 expenses ......................................................... 112,546 111,936 123,401 124,401 ∂11,855 ∂12,465 ∂1,000 

Office of Inspector General .................................................................................... 2,061 1,519 1,519 1,519 ¥542 .......................... ..........................

Limitation on administrative expenses ......................................................... 16,278 16,481 16,981 17,081 ∂803 ∂600 ∂100 

Govt Payment for Annuitants, Employees Health Benefits ................................... 8,780,260 8,884,000 8,884,000 8,884,000 ∂103,740 .......................... ..........................Govt Payment for Annuitants, Employee Life Insurance ....................................... 39,000 41,000 41,000 41,000 ∂2,000 .......................... ..........................Payment to Civil Svc Retirement and Disability Fund .......................................... 10,532,000 11,941,000 11,941,000 11,941,000 ∂1,409,000 .......................... ..........................

Total, Office of Personnel Management ................................................... 19,593,750 21,097,701 21,109,666 21,110,766 ∂1,517,016 ∂13,065 ∂1,100 

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 .......................... ..........................
141 

Small Business Administration 

Salaries and expenses ........................................................................................... 327,592 310,103 346,553 412,103 ∂84,511 ∂102,000 ∂65,550 

Rescission (unobligated balances) ............................................................... ¥6,100 .......................... .......................... .......................... ∂6,100 .......................... ..........................

Office of Inspector General .................................................................................... 13,835 15,000 15,000 15,000 ∂1,165 .......................... ..........................

By transfer from Disaster Loans Program account ...................................... (1,485 ) (500 ) (500 ) .......................... (¥1,485 ) (¥500 ) (¥500 ) 

Surety bond guarantees revolving fund ................................................................ 2,824 3,000 3,000 3,000 ∂176 .......................... ..........................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 balances) ............................................................... ¥5,000 .......................... .......................... .......................... ∂5,000 .......................... ..........................

Total, Business loans program account .................................................. 121,145 135,414 217,944 137,414 ∂16,269 ∂2,000 ¥80,530 

Disaster Loans Program Account: 

Direct loans subsidy ..................................................................................... .......................... .......................... .......................... .......................... .......................... .......................... ..........................Administrative expenses (by transfer) .......................................................... .......................... (156,000 ) .......................... .......................... .......................... (¥156,000 ) ..........................Administrative expenses ............................................................................... 114,931 .......................... .......................... .......................... ¥114,931 .......................... ..........................Rescission (unobligated balances) ............................................................... ¥2,300 .......................... .......................... .......................... ∂2,300 .......................... ..........................Disaster Relief, FEMA (transfer out) ............................................................. .......................... (¥200,000 ) (¥500 ) .......................... .......................... (∂200,000 ) (∂500 ) 

Total, Disaster loans program account .................................................... 112,631 .......................... .......................... .......................... ¥112,631 .......................... ..........................

(by transfer) ..................................................................................... .......................... (156,000 ) .......................... .......................... .......................... (¥156,000 ) ..........................(transfer out) ................................................................................... .......................... (¥200,000 ) (¥500 ) .......................... .......................... (∂200,000 ) (∂500 ) 

Total, Small Business Administration ...................................................... 571,927 463,517 582,497 567,517 ¥4,410 ∂104,000 ¥14,980 

United States Postal Service 

Payment to the Postal Service Fund ..................................................................... 29,000 .......................... .......................... 29,000 .......................... ∂29,000 ∂29,000 Advance appropriations ......................................................................................... 79,915 88,864 88,864 88,864 ∂8,949 .......................... ..........................

Total, United States Postal Service .......................................................... 108,915 88,864 88,864 117,864 ∂8,949 ∂29,000 ∂29,000 

United States Tax Court ......................................................................................... 47,625 45,326 45,069 45,326 ¥2,299 .......................... ∂257 

Total, title V, Independent Agencies ........................................................ 21,895,347 23,828,739 23,910,920 24,299,172 ∂2,403,825 ∂470,433 ∂388,252 

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 ) 
142 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2007 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2008—Continued 

[In thousands of dollars] 

Item 2007 appropria- tion Budget estimate House allowance Committee rec- ommendation 

Senate Committee recommendation compared with 

(∂ or ¥) 

2007 appropriation Budget estimate House allowance 

(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 ) 

Æ