Appropriations for FY2000: Treasury, Postal Service, Executive Office of the President, and General Government
Released: 2000-05-25T00:00:00

Most Recent Developments

On September 29, 1999, President Clinton signed P.L. 106-58 (H.R. 2490),making appropriations for the Department of the Treasury, the Postal Service, theExecutive Office of the President and other independent agencies for FY2000. Subsequently, P.L. 106-113 , approved November 29, required a 0.38% cut in allfunding for FY2000.

House and Senate conferees reached agreement September 9, 1999. The House agreed to the conference report September 15. The Senate agreed to the reportSeptember 16. The bill was sent to the President for signature September 21. In theevent the bill was not signed before the close of the fiscal year, the accounts wouldhave been covered in the continuing funding resolution (H.J.Res. 68) passed byCongress September 28.

The House, on July 15, passed H.R. 2490, by one vote. On July 19, 1999, the Senate passed H.R. 2490, amended to incorporate the language of S. 1282, as passedthe Senate (July 1). The Senate conferees were named that day, with the Houseconferees named July 21.

Action on FY2000 supplemental funding was pending as Congress left for the Memorial Day break.

Introduction

The President, through the Office of Management and Budget (OMB) isrequired to submit to Congress, annually, the Budget of the United StatesGovernment. On February 1, 1999, the budget for FY2000 was submitted. (1)

Congress has established a procedure under which it passes a concurrent resolution which establishes the congressional budget for the government and setsforth budgetary levels for several years in the future. (2) The House and SenateAppropriations Committees then allocate the discretionary funding levels (302(b)allocations) to each of the subcommittees. Since passage of the FY2000 budgetresolution, the committees have changed the allocations several times. (3) TheCongressional Budget Office has offered spending and revenue options in the contextof budgetary discipline. (4)

Appropriations for the Department of the Treasury, in addition to funding the operations of the department, fund the work of a group of law enforcementorganizations, which include the Bureau of Alcohol, Tobacco, and Firearms, theCustoms Service, the Secret Service, the Financial Crimes Enforcement Network,and the Federal Law Enforcement Training Center. Treasury appropriations alsocover the Internal Revenue Service, the Financial Management Service, and theBureau of Public Debt.

For the most part, the U.S. Postal Service has become self-supporting. Federal contributions are limited to payments to the Postal Service Fund to compensate forrevenues forgone (e.g., free postal service for the blind).

Appropriations for the Executive Office of the President provide salaries and expenses for the White House Offices, operation of the residences of the Presidentand Vice President, and most other agencies within the Executive Office of thePresident (EOP). Organizations such as the Council of Economic Advisers, theNational Security Council, the Office of Management and Budget, and the Officeof National Drug Control Policy (ONDCP) are funded through these provisions. Specific funding for drug control initiatives is provided for distribution by ONDCP.

Among the independent agencies financed through P.L. 106-58 are the Federal Election Commission, the General Services Administration, the National Archivesand Records Administration, the Office of Personnel Management, the Office ofSpecial Counsel, and the U.S. Tax Court.

P.L. 106-58 provides funding for federal child care facilities. That provision generated considerable concern among some Members and was a point of contentionas the conference agreement was discussed. The Senate, in passing S. 1282, addeda title to the bill for the purpose of ensuring "the safety and availability of child carecenters in Federal facilities." According to the sponsors of the amendment,

This amendment will require all child care services located in federal facilities to meet, at the very least, the same level ofhealth and safety standards required of other child care centers in the samegeographical area. (5)

The House bill, as passed, did not contain all of the child care provisions included in the Senate amendment. However, it did contain the same language addressing theissue of improving the affordability of child care for federal employees. Anamendment similar to this year's Senate amendment was offered to the FY1999Treasury bill, adopted in the Senate, and fell in conference. The issue is discussedfurther later in this report.

Among other provisions adopted by the Senate, July 1, the following would

Convey federal land to the Columbia Hospital forWomen;

Amend the Social Security Act to require the Secretary ofHealth and Human Services to provide bonus grants to high performance Statesbased on certain criteria and collect data to evaluate the outcome of welfarereform;

Prohibit the use of funds to pay for an abortion or to pay for theadministrative expenses in connection with certain health plans that provide coveragefor abortions;

Provide additional funding to reduce methamphetamine usagein High Intensity Drug Trafficking Areas;

Increase U.S. Customs Service funding to enable the hiring of500 new inspectors to stop the flow of illegal drugs into the U.S. and to facilitatelegitimate cross-border trade and commerce; and

Require the Secretary of the Treasury to develop an Internet sitewhere a taxpayer may generate a receipt for an income tax payment which itemizesthe portion of the payment which is allocable to various government spendingcategories.

The Senate rejected the amendment which would have required the inclusion of alcohol abuse by minors in the ongoing national anti-drug media campaign foryouth.

The House narrowly passed H.R. 2490 (210-209) on July 15, 1999. The House committee, in an effort to bring total spending down to FY1999's freeze level, hadreduced the subcommittee discretionary funding levels by $249 million. That actioncontributed to many Members withdrawing support of the bill. The programs affected by that reduction are Treasury-wide systems and capital improvements,Internal Revenue Service (IRS) processing, assistance, and management, IRS tax lawenforcement, IRS information systems, and General Services Administration repairsand alterations.

Several amendments were offered during consideration of H.R. 2490. Those subject to voice vote were

An amendment to prohibit the import of any children'ssleepwear without the labels required by the flammability standards issued by theConsumer Product Safety Commission was agreed to;

An amendment to change the language of the provisionrequiring contraceptive coverage in the FEHBP was agreed to,amended;

An amendment to provide $3 million for grants to investigatemoney laundering and related financial crimes; and

An amendment to establish that no funds may be used toenforce any prohibition on women breastfeeding their children in federal buildingsor on federal property.

Those subject to roll call votes were

An amendment to strike language limiting funds availabilitythrough the Federal Employees Health Benefits Program (FEHBP)--failed;

An amendment to strike language increasing the President'ssalary-- failed;

An amendment to amend the amendment offered to change thelanguage of the provision requiring contraceptive coverage in the FEHBP -- agreedto; and

An amendment to limit use of the Exchange StabilizationFund-- failed.

Several House Members offered amendments and then subsequently withdrew them after receiving assurances from the managers of the bill that the issues wouldeither be addressed in conference or would be pursued with the appropriate executivebranch administrators. Among those were amendments to provide for the release offrozen assets of a foreign state to satisfy all pending court judgements; to require anU.S. Customs Service report on the conduct of strip searches, including data on theethnicity, gender, nationality, and race of the individuals subject to the searches; torequire that any U.S. Customs officer conducting a strip search be of the same genderas the subject of the search; to study the safety of red-dye kerosene fuel available toelderly and low income individuals; and to allow enrollees in the Federal EmployeeHealth Benefits Program the option of choosing dental, optometry, infertility, orprescription drug benefits in lieu of mandated contraceptive coverage.

An amendment to prevent Members of Congress from receiving a pay adjustment in January 2000 was not in order, under the rule (H.Res. 246) for H.R.2490, and was not offered on the floor. The act provides increase in the President'ssalary, to $400,000, effective January 20, 2001. Compensation issues are discussedelsewhere in this report.

Across-the-Board Cuts

Pursuant to the provisions of P.L. 106-113 (6) ,the Consolidated AppropriationsAct for FY2000, agencies must cut their FY2000 funding by 0.38%. As part of theFY2001 budget submission, expected in early February, the Office of Managementand Budget (OMB) will report on the specific reductions in the accounts.

OMB issued a fact sheet (2000-01-10 OMB Fact Sheet, January 10, 2000) in which the Administration stated that the law stipulated that 0.38 percent in savingsneeded to come from each and every Department. However, within each department,it provided latitude to protect high-priority programs as long as the dollar figureamounting to 0.38 percent was achieved provided certain other conditions were met. OMB provided guidance regarding general principles the Agencies should use toidentify cuts:

The 0.38 cut must not be imposed across the board, but targeted to reflect areas of higher and lower priority;

Reductions need to come from least criticalfunding;

Reductions should be considered from funding that Congressenacted above the President's request,

Wherever possible, no reductions in force frompersonnel.

According to OMB, the law also imposed the condition that no reduction in any single program could exceed 15% of its total. In other words, the law did not permitan entire program to be eliminated in order to count toward the savings necessary fora given department. At least 85% of the funding total for the program had to remainintact. Among those accounts identified as being fully protected are the ATF YouthGun Initiatives and Secret Service Salaries and Expenses.

Status and Legislative History

Public Law 106-58, an act making FY2000 appropriations for the Departmentof the Treasury, the U.S. Postal Service, the Executive Office of the President andseveral independent agencies, was signed by President Clinton September 29, 1999. (7)

H.R. 2490 was sent to the President for signature September 21, 1999. In the event he had not signed the bill before the close of FY1999, the accounts wereincluded in a continuing funding resolution (H.J.Res. 68) which passed the CongressSeptember 28 and which expires October 21. (8)

The House Committee on Appropriations Subcommittee on Treasury, Postal Service, and General Government held eight days of hearings during February andMarch 1999. The subcommittee marked up a bill and sent it to the full committeeon May 14. The House Appropriations full committee marked up the subcommitteeprovisions and reported the bill, H.R. 2490 ( H.Rept. 106-231 ) on July 13, 1999. (9)

Pursuant to a rule for consideration (H.Res. 246, H.Rept. 106-234 ), (10) H.R. 2490,amended, passed the House July 15, 1999. (11)

On July 1, 1999, the Senate passed S. 1282, the Treasury appropriations bill for FY2000. (12) By unanimous consent, the Senateagreed to hold the bill at the desk untilthe companion measure was received from the House.

Several days of hearings were held by the Senate Committee on Appropriations Subcommittee on Treasury, Postal Service, and General Government subcommitteeduring February, March, and April. The subcommittee had scheduled considerationof the Senate version of the appropriations measure on June 22. However, in lieu ofsubcommittee action, the full committee marked up the measure June 24. It wasintroduced as S. 1282, accompanied by S.Rept. 106-87 . (13)

On July 19, 1999, the Senate passed H.R. 2490, amended to incorporate the Senate-passed language of S. 1282. (14) Senateconferees were named at that time. TheHouse disagreed with the Senate amendments and insisted on a conference. (15) Amotion to instruct was offered and agreed to. Later in the day, conferees werenamed. (16)

Conferees reached agreement September 9, 1999 and ordered the conference report to be filed ( H.Rept. 106-319 ). (17) The Rulefor consideration of H.R. 2490provided that there would be waivers of all points of order against the provisions ofthe bill and its consideration (H.Res. 291, H.Rept. 106-322 ). (18)

The House agreed to the conference language, by a vote of 296-126 (Roll Call No. 426). (19) The Senate agreed to the conferencelanguage, by a vote of 54-38 (VoteNo. 277), September 16. (20)

For the purposes of legislative history on the FY1999 omnibus funding act, the reader is reminded that P.L. 105-277 (21) was aproduct of using the Transportationappropriation bill ( H.R. 4328 ) as the vehicle for creating the larger bill. The Treasury and General Government appropriation was subject to congressionalaction as H.R. 4104 (105th Congress) prior to being included in theomnibus measure.

Table 1. Status of FY2000 Appropriations for the Treasury, Postal Service, Executive Office of the President and GeneralGovernment

Budget and Key Policy Issues

Department of the Treasury

The Department of the Treasury has both financial and law enforcement functions. The financial functions are carried out by the Financial ManagementService, the Mint, and the Bureau of Public Debt. The law enforcement functions arecarried out by the Customs Service, the Secret Service, the Bureau of Alcohol,Tobacco and Firearms, and the Financial Crimes Enforcement Network, and theFederal Law Enforcement Training Center. The Internal Revenue Service has botha financial function--to determine and audit tax obligations--and a law enforcementfunction--to enforce collection of amounts due.

P.L. 106-58 funds the Department of the Treasury at $12,354,616,000. The single largest account within the department's funding is the Internal RevenueService, at $8,248,774,000.

For FY1999, Congress appropriated $12,637,225,000 to the Department of the Treasury ( P.L. 105-277 ), including emergency funding. Of this amount,$8,375,165,000 (including emergency Y2K funding), or 66.3 % of the totaldepartmental funding, was allocated to the Internal Revenue Service. The President'sbudget request for FY2000 totals somewhat less--$12,376,130,000 for thedepartment with $8,248,774,000 allocated for the IRS. Of the total departmentalrequest, 66.6% would be assigned to the IRS.

As passed by the Senate July 1, 1999, S. 1282 would have funded the department accounts at $12,234,649,000. As passed by the House July 15, 1999, H.R.2490 would have funded the accounts at $12,189,648,000. An amendment agreedto in the House would have earmarked $3 million to be used for grants in combatingmoney laundering.

The House Appropriations Subcommittee on Treasury, Postal Service and General Government marked up the FY2000 appropriations measure on May 14. Their mark for the Department of the Treasury was $12,329,592,000. On July 13, theHouse Appropriations Committee reported their bill. As reported, H.R. 2490 wouldfund the Department of Treasury at $12,198,648,000. According to a July 13 pressrelease from the committee, a major amendment to the subcommittee mark wouldreduce funding to the department by $139 million: $4.9 million to Treasury-wideSystems and Capital Improvement; $42.4 million to IRS Processing, Assistance, andManagement; $31.7 million to IRS Tax Law Enforcement; and $60.86 million to IRSInformation Systems.

On June 24, the Senate Committee on Appropriations reported their bill. The funding level in the Senate would be $12,213,529,000. Senate floor action wouldhave increased funding, beyond the Senate committee spending levels, for the U.S.Customs Service, the High Intensity Drug Trafficking Areas program for reducingmethamphetamine usage, and for the Bureau of Alcohol, Tobacco, and Firearms'Youth Crime Gun Interdiction Initiative.

The Department of the Treasury established the Office of Treasury Inspector General for Tax Administration in January 1999, as required by P.L. 105-206 , theInternal Revenue Service Restructuring and Reform Act of 1998. The IRS Office ofthe Chief Inspector was abolished. To provide the necessary flexibility forestablishing and reorganizing the new office, the House Appropriations Committeeauthorized voluntary separation incentives for the office's employees. The incentivesof up to $25,000 may be offered from October 1, 1999 through January 1, 2003. TheOffice of the Treasury Inspector General for Tax Administration may redeploy or usethe positions vacated through voluntary separations to make other positions availableto more critical locations or more critical occupations.

The Chicago Financial Center of the Department of the Treasury's Financial Management Service is being closed. To provide the necessary flexibility to carryout the closure, the House Appropriations Committee authorized voluntary separationincentives for the center's employees. The incentives of up to $25,000 may beoffered from October 1, 1999 through January 31, 2000. The Secretary of theTreasury, prior to obligating any resources for the payments, must submit a strategicplan to the Office of Management and Budget outlining the intended use of thepayments and a proposed organizational chart for the agency once the payments havebeen completed. The total number of funded positions in the agency will be reducedby one full-time equivalent position for each vacancy created by a separationincentive. This provision could be waived if the agency demonstrated that thepositions would better be used to reallocate occupations or reshape the workforce andto produce a more cost-effective result.

Bureau of Alcohol, Tobacco, and Firearms (ATF). The Bureau of Alcohol, Tobacco, and Firearms(ATF) is a law enforcement agency that monitors compliance with federal lawsrelated to the manufacture, importation, and distribution of alcohol, tobacco,firearms, and explosives. While these laws prohibit certain illegal activities, theyalso regulate legal activities related to these commodities. ATF also enforces federallaws related to arson. In enforcing federal law, ATF officers often work closely withother federal, state, and local law enforcement officers. ATF's mission is focused onthree goals: 1) reducing crime, 2) collecting revenue, and 3) protecting the public.

For FY2000, P.L. 106-58 provides ATF with $605,879,000 in total funding, an amount that includes a direct appropriation of $565,959,000 for the salaries andexpenses account, and an additional appropriation of $40,920,000 from the ViolentCrime Reduction Trust Fund. In conference report language, conferees directed theDepartment of Treasury to allocate another $34,947,000 from the Treasury AssetForfeiture Fund for ATF.

The ATF direct appropriation of $565,959,000 is $1,100,000 less than the amount proposed by the House, and $4,386,000 less than the amount proposed by theSenate. Also, the amount is 2% over the agency's FY1999 funding of$552,769,000,000, but 3% below the Administration's FY2000 request of$584,859,000. Over and above this amount, the Administration also requested$15,000,000 for the relocation of ATF headquarters and laboratory facilities, butconferees instructed the agency in report language to find funding for this initiativein the Treasury Asset Forfeiture Fund.

For the Youth Crime Gun Interdiction Initiative (YCGII), a program that coordinates federal, state, and local law enforcement agency efforts to eliminateillegal sources of firearms for juveniles and youth, the act provides $51,320,000 intotal funding. This funding will allow ATF to expand this program from 27 to 37cities in FY2000. Of this amount, $39,000,000 is earmarked in ATF's directappropriation. The additional $12,320,000 is earmarked for ATF from the ViolentCrime Reduction Trust Fund. Also, included in this trust fund is an earmark of $13,000,000 for ATF's Gang Resistance Education and Assistance Training grantprogram, and another $3,000,000 for ATF to administer this program.

In addition, the conferees earmarked $5,000,000 to expand the Integrated Ballistic Identification System, as earmarked in the House report language. Theconferees also earmarked, as in House report language, $5,000,000 for implementingthe tobacco compliance provision arising from the 1997 balanced budget agreement,which gave ATF the authority to enter and examine commercial enterprises thatre-import U.S. cigarettes in an attempt to bypass taxes and licensing fees.

Among ATF's activities, the regulation and enforcement of laws related to firearms commerce and possession appear to be the most controversial. Consistentwith language included in ATF appropriations in previous years, the agency'sappropriations bill language specifies that agency funding cannot be used toconsolidate or centralize the records, or any portion of the records, of the acquisitionand disposition of firearms that are maintained by Federal Firearm Licensees. Inaddition, the agency's appropriations bill language specifies that agency fundingcannot be used to implement regulations modifying the term "curios or relics," orinvestigate relief for individuals disqualified from possessing a firearm or forcorporations disqualified from dealing in firearms. Furthermore, the act's generalprovisions make permanent a provision that allows Federal Firearms Licensees toperform a background check before a firearm is offered as collateral for a loan.

Both the House and Senate, meanwhile, have acted on gun control-related legislation. For further information, see CRS Issue Brief IB10014, Gun Control.

Customs Service. The U.S. Customs Service, the federal government's oldest regulatory agency, is responsible formonitoring the movement of persons, carriers, merchandise, and commoditiesbetween the United States and other countries. In FY1998, Customs inspected nearly460 million passengers, 121 million private vehicles, 237 million private andcommercial aircraft, 10 million commercial trucks, and 5 million vessel cargocontainers. As part of this process, Customs also assesses trade-related duties, taxes,and fees on imported merchandise, collecting about $22 million in revenue annually.

For FY2000, P.L. 106-58 provides the Customs Service with $1,878,052,000 in total appropriated funding. This amount includes funding from four sources. Thefirst three sources make up Customs' core funding of $1,817,052,000, and include:1) a direct appropriation from the General Fund of $1,705,364,000 for salaries andexpenses, 2) an appropriation of $3,000,000 in fee receipts from the HarborMaintenance Fee Account for salaries and expenses, and 3) another directappropriation of $108,688,000 for the Air and Marine Interdiction Programs. Thefourth source is the Violent Crime Reduction Trust Fund from which $61,000,000is provided for Customs. In addition, conferees directed the Department of Treasuryto allocate $64,493,000 from the Treasury Asset Forfeiture Fund for Customs.

Core funding for Customs ($1,817,052,000), as provided by the act, is $450,000 less than the amount approved by the House, and $34,617,000 more than the amountpassed by the Senate. By comparison, the Administration's FY2000 request for theCustoms Service of $1,829,783,000 was $219,371,000 less than the previous year'sappropriation. This decrease, however, was largely reflective of supplementalappropriations for FY1999 totaling $276,000,000 to increase counter-drug traffickingactivities. A large part of this funding was for the one-time acquisition of aircraft andnon-intrusive inspection technology.

Conferees earmarked in report language a number of budget enhancements for FY2000, which include 1) $35,000,000 to upgrade automated systems that trackimports, 2) $9,000,000 for additional non-intrusive mobile personal inspectiontechnology, 3) $5,011,000 for the forced child labor program, 4) $2,000,000 formoney laundering outbound detection technology, and 5) $1,600,000 for theCybersmuggling Center.

The conferees, as did the Senate and House, rejected the Administration's proposal to enact a user fee as a means to generate funding to modernize theAutomated Commercial System (ACS) and continue the development of theAutomated Commercial Environment (ACE). The ACS is used by the CustomsService to track, control, and process all commercial goods imported into the UnitedStates. In recent years, this system has proved inadequate and has suffered from"brownouts" that inhibit international commerce. To upgrade the old system andcontinue development of the second, the act provides $35,000,000 for FY2000. While it has been estimated that it will cost $1,800,000,000 over four years todevelop the ACE system, the conferees requested the Customs Service to provide therevised blueprint, schedule, and budget for ACE not later than the time when theAdministration makes its FY2001 budget submission to Congress.

The act provides $4,000,000 in total FY2000 funding for Custom's Cybersmuggling Center, which includes $2,400,000 provided for the center from theViolent Crime Reduction Trust Fund, as recommended by both the Senate and theHouse committees. Custom's Cybersmuggling Center tracks and investigates childpornography trafficking and child exploitation over the Internet. The Senate wouldhave provided an increase of $4,000,000 to expand the Customs Integrity AwarenessProgram to improve screening of new job applicants and to administer polygraphexaminations to candidates for positions that are the most susceptible to corruption;the conferees were silent on this initiative.

The conferees addressed several other issues in report language. Regarding operations on the Southwest border, conferees earmarked $25,000,000 from theTreasury Asset Forfeiture Fund for the Southwest border initiative. Conferees alsoinstructed the Customs Service to maintain current levels of staffing in Arizona, andto report to the Appropriations Committees by March 31, 2000, on what resourceswould be necessary to reduce wait times at Southwest border ports of entry to notmore than 20 minutes. Further, within 60 days of enactment of this appropriationsact, conferees required that the Customs Service submit to the AppropriationsCommittees its recommendations for reducing wait times and improving contrabanddetection at Southwest border ports of entry.

Responding to allegations that some Customs inspectors inordinately target African-Americans and Hispanic-Americans for personal searches and detention, theconferees directed the Secretary of the Treasury to submit a report to Congress on theCustoms Service's personal search and detention procedures by February 15, 2000.

Regarding international ports of entry in general, the conferees required the Customs Service, with the General Services Administration, to assess currentinfrastructure at international ports and provide a report to the appropriationscommittees within 9 months of the enactment of this appropriations act. Confereesalso urged the Customs Service to evaluate the merits of creating new internationalports of entry at airports in 1) Fargo, North Dakota; 2) San Antonio, Texas; and 3)Manchester, New Hampshire. The act provides $725,000 and directs the CustomsService to create a Northern Plains agricultural economics program to analyze issuesrelated to bilateral U.S./Canada trade issues on the northern plains.

Finally, conferees expressed their strong dissatisfaction that the Customs Service did not deliver its air and marine fleet modernization plan, which was to besubmitted with the Administration's FY2000 budget. Conferees reiterated that thisplan is to include life span and replacement schedules for Customs craft, associatedoperations and maintenance activities, and cost projections for fleet modernization,and stipulated that they expected prompt completion and delivery of the plan.

Internal Revenue Service (IRS). P.L. 106-58 provides funding of $8,248,774,000 to the IRS for FY2000. For FY1999,Congress appropriated $8,375,165,000 (including emergency Y2K funding), to theIRS accounts. The President's budget request for FY2000 would fund$8,248,774,000 to the IRS. Excluding emergency funding from the total FY1999enacted, shows the President's FY2000 request exceeding the regular FY1999funding.

The Senate agreed to a funding level of $8,191,135,000. An amendment was adopted by the Senate to require the Secretary of the Treasury to develop an Internetsite where a taxpayer may generate a receipt for an income tax payment whichitemizes the portion of the payment which is allocable to various governmentspending categories. (22)

The House Treasury Subcommittee had recommended an appropriation of $8,244,774,000. The bill reported from full committee on July 13 included a majoramendment which would reduce funding to the department by $139 million: $4.9million to Treasury-wide Systems and Capital Improvement; $42.4 million to IRSProcessing, Assistance, and Management; $31.7 million to IRS Tax LawEnforcement; and $60.86 million to IRS Information Systems. As reported andpassed in the House, the bill would have funded the IRS at $8,109,774,000. TheHouse conferees were instructed to restore $50 million in funding for the IRS tocomplete its Y2K compliance effort.

The President's budget for FY2000 lists implementation of IRS reforms as a Priority Management Objective. (23) Specifically,the modernization of the IRS'organization and its information technology to better serve taxpayers and improveproductivity are stated as the major goals of the restructuring. In December 1998, theservice let a contract for designing and installing information technologyimprovements. In the spring of 1999, IRS Commissioner Charles Rossotti is due tobegin implementation of system improvements.

In the 105th Congress, P.L. 105-206 was enacted to address long standing operational problems in the IRS. (24) On January8, the first report to Congress mandated by the new law was delivered. The report, 1998 IRS National TaxpayerAdvocate's Annual Report to Congress , (25) spelled out action taken by the NationalTaxpayer Advocate, as required by the statute to address IRS issues with taxpayers.

Secret Service. The U.S. Secret Service provides for the protection and security of the President, Vice President, andother dignitaries and designated persons. It is also responsible for the protection ofthe White House and other Washington, D.C., buildings, as well as the enforcementof federal laws pertaining to financial crimes and frauds. P.L. 106-58 providesregular funding of the Secret Service at $672,235,000. In addition, the agency is toreceive $4,200,000 under the Violent Crime Reduction Program (Crime ControlTrust Fund).

For FY2000, the President had requested $661,312,000 for salaries and expenses for the Secret Service.

On July 1, 1999, the Senate agreed to an appropriation of $643,739,000, including $638,816,000 to carry out its presidential candidate and nomineeprotection, protective research, and counterfeiting investigations, and $3,196,000 forthe National Center for Missing and Exploited Children.

The bill, as reported to the House from the full committee, would provide an appropriation of $643,739,000. On July 15, 1999, the House agreed to anappropriation of $666,235,000 for protective functions, acquisition, andimprovements.

Postal Service

While the U.S. Postal Service (USPS) generates most of the funding it requires through sales of its products and services, it also receives an appropriation from thefederal government. The USPS receives an annual appropriation to its Postal ServiceFund to pay for revenue forgone on free and reduced rate mail (for the blind andvisually impaired and overseas voting). P. L. 105-277 provided FY1999 funding at$71,195,000. Supplemental appropriations for FY1999 provided an additional$29,000,000 for revenue forgone reimbursement. For payment to the Postal ServiceFund for revenue forgone for FY2000, the President is requesting $93,436,000. P.L. 106-58 provides funding at $93,436,000, with $29,000,000 prior to October 1,2000 and the remaining $64,436,000 deferred until October 1, 2000.

P.L. 105-277 required that the Postal Service submit, within six months of enactment, a report on its current and future commercial services. Further languagerequired the USPS to report on its packaging service, especially how such servicemeets customer demand nationally, especially in rural areas, before such service isinitiated. In compliance with P.L. 105-277 , the report was submitted by the PostalService to the Appropriations Committee in April 1999.

Finally, P.L. 105-277 amended the USPS' international service agreements by making the Secretary of State solely responsible for formulating, coordinating, andoverseeing foreign policy related to international postal and delivery services. USPSofficials, with presidential consent, may establish international rates and/or fees formail and delivery services. Regarding the importing or exporting of mail shipments,the USPS is required to follow the same procedures and laws applicable to similarshipments transmitted by or to private companies.

Executive Office of the President and Funds Appropriated to the President

The Treasury, Postal Service, and General Government appropriations bill funds all the offices in the Executive Office of the President (EOP), except the following threeoffices--the Council on Environmental Quality and the Office of Science andTechnology Policy (both funded under Veterans Affairs, Housing and UrbanDevelopment, and Independent Agencies appropriations), and the Office of theUnited States Trade Representative (funded under Commerce, Justice, State, and theJudiciary and Related Agencies appropriations). Moreover, the Federal Drug ControlPrograms account, which comprises almost two-thirds of EOP's appropriation, is notfor use by agencies within EOP, but for transfer to federal and state entities for theirdrug control programs. The Office of National Drug Control Policy (ONDCP),which is located in the EOP, distributes the funds to federal and state entities.

The FY2000 appropriations for the offices in the EOP that are funded by the Treasury appropriations act total $645,489,000, which is .9% more than the$639,498,000 requested by the President, and 3.7% less than the $670,112,000appropriated for FY1999. The House initially approved an appropriation of$654,762,000, and the Senate an appropriation of $570,128,000. The smaller amountinitially appropriated by the Senate was due to a decrease in the funding for thespecial forfeiture account in the Federal drug control program.

The specific accounts are discussed below. In those cases in which there is no difference between P.L. 106-58 , the FY2000 request, and Senate or House passageonly the appropriation is noted.

Compensation of the President. The FY2000 appropriation is $250,000, and includes an allowance of $50,000 for officialexpenses. This is the same amount as appropriated in FY1999.

The act includes an increase in the President's salary to $400,000 per annum, .effective with the change in administration in January 2001. Hearings on the issuewere held May 24 by the House Committee on Government Reform Subcommitteeon Government Management, Information, and Technology. (26) An amendment tostrike the provision failed during consideration of H.R. 2490 on the House floor.

White House Office. The FY2000 appropriation is $52,444,000 for salaries and expenses in the White House Office,the amount requested by the President, and an increase of .2% over the $52,344,000appropriated in FY1999. The FY2000 appropriation includes $10,313,000 forreimbursements to the White House Communications Agency, a Department ofDefense component which has historically provided non-telecommunications supportservices. The reimbursements are in accordance with P.L. 104-21 .

Executive Residence (White House). The FY2000 appropriation is $9,260,000, an increase of 6.5% over the $8,691,000appropriated in FY1999. The FY2000 appropriation includes $810,000 for therepair, alteration, and improvement of the Executive Residence. (Maintenance andrepair costs for the White House are also funded by the National Park Service as partof that agency's responsibility for national monuments. Entertainment costs for statefunctions are funded by the Department of State.) As in previous appropriationsstatutes, reimbursable political events in the Executive Residence are to be paid forin advance by the sponsor, and all such advance payments are to be credited to areimbursable expenses account. The political party of the President is to deposit$25,000 to be available for expenses relating to reimbursable political events duringthe fiscal year.

Special Assistance to the President (Office of the Vice President) and Official Residence of the Vice President. TheFY2000 appropriation is $3,617,000 for the Office of Vice President, an increase of3% over the $3,512,000 appropriated in FY1999. The FY2000 appropriationincludes $345,000 for the Official Residence of the Vice President, an increase of3.3% of over the $334,000 appropriated in FY1999. Up to $90,000 could be used forofficial entertainment expenses.

Council of Economic Advisers. The FY2000 appropriation is $3,840,000, an increase of 4.7% over the $3,666,000appropriated in FY1999.

Office of Policy Development. The FY2000 appropriation is $4,032,000, the same as appropriated in FY1999.

National Security Council. The FY2000 appropriation is $6,997,000, an increase of 2.8% over the $6,806,000appropriated in FY1999.

Office of Administration. The FY2000 appropriation is $39,198,000, which is 32.6% less than the $58,141,000appropriated in FY1999. (The FY1999 appropriation included $29,791,000 inemergency funding for Y2K conversion. An additional $12,000,000 was transferredto the office from other accounts.) Of the FY2000 funds, $8,806,000 is to beavailable for a capital investment plan which provides for the modernization of theinformation technology infrastructure. Title VI, section 638, calls for the creation ofa Chief Financial Officer in the EOP. The House initially approved an FY2000appropriation of $39,448,000, of which $250,000 was to be used to establish the newposition

Office of Management and Budget (OMB). The FY2000 appropriation is $63,495,000, anincrease of 4.7% over the $60,617,000 appropriated in FY1999. To combat crimesagainst intellectual property rights, the Senate Appropriations Committee hasdirected the Director of OMB to submit a plan to establish an inter-agency NationalIntellectual Property Coordination Center, not later than February 15, 2000, unlessthe President determines that such a center is not necessary. (27) The committee alsodirects the Director to prepare an inventory of Federal grant programs for fiscal year1999, as a step in simplifying and consolidating the federal grant process. (28)

Office of National Drug Control Policy (ONDCP). The FY2000 appropriation is $52,201,000, anincrease of 21% over the President's request of $43,133,000, and an increase of 6%over the $49,242,000 FY1999 appropriation. The appropriation consists of two lineitems, $22,951,000 for Salaries and Expenses, of which $1,100,000 shall be availablefor policy research and evaluation, and $1,000,000 for the National Alliance forModel State Drug Laws; and $29,250,000 for the Counterdrug TechnologyAssessment Center, consisting of $16,000,000 for counternarcotics research anddevelopment projects, and $13,250,000 for the continued operation of the technologytransfer program. The $16,000,000 for counternarcotics research and developmentprojects shall be available for transfer to other Federal departments or agencies. Thefocus of the increased funding would be the media campaign to reduce and preventdrug use among youth. A proposal to include underage alcohol consumption as atarget in that media campaign was dropped from the bill, as provided by thesubcommittee. The Congressional Budget Office, in offering options forgovernment-wide spending cuts, suggested that additional appropriations for themedia campaign should be eliminated. Their report presumes that the effectivenessof the campaign would be sustained at the level of funding appropriated in FY1999. (29)

Appropriations also include funding for two federal drug programs that ONDCP is to transfer to federal and state entities. The FY2000 appropriation for the HighIntensity Drug Trafficking Areas (HIDTA) is $192,000,000, an increase of 3.3% overthe President's requested $185,777,000 ($1,800,000 for auditing services), and anincrease of 3.8% over the $184,977,000 appropriated in FY1999. The FY 2000appropriation for the Special Forfeiture Fund is $216,000,000, which is 4.1% lessthan the $225,300,000 the President requested, and the same as appropriated inFY1999.

Unanticipated Needs. The FY2000 appropriation is $1,000,000 for discretionary expenses necessary to enable thePresident to meet unanticipated needs, in furtherance of the national interest, security,or defense which may arise at home or abroad. In FY1999, two additionalappropriations were included under this account that are not included in FY2000. Both appropriations were included under the Omnibus Consolidated and EmergencySupplemental Appropriations Act. One was $30,000,000 (of which $10,000,000 waslater rescinded) for a grant to the Red Cross for reimbursement of disaster relief,recovery expenditures and emergency services ( P.L. 105-277 , 112 Stat. 2681, at2681-576). The second was emergency funding of $2,250,000,000, for Year 2000conversion of federal information technology systems, and related expenses, withallocations specified ( P.L.105-277 , 112 Stat. 2681, at 2681-572). areas throughoutthe United States. Those surveys are conducted, but the pay adjustments have beenlimited through language in the Treasury bill for several years.

Independent Agencies

Federal Election Commission (FEC). The Federal Election Commission (FEC) administers federal campaign finance law,oversees disclosure requirements, limits on contributions and expenditures, and thepresidential election public funding system, and retains civil enforcement authority. For Fiscal Year 2000, Congress appropriated $38,152,000 to fund the FEC,$364,000 less than the Administration's request of $38,516,000.

P.L. 106-58 also makes three statutory changes in FEC operations, based on proposals by a recent Price Waterhouse Coopers management study. Aimed atimproving operations, these new provisions give the FEC authority to requireelectronic filing by committees meeting a threshold financial activity level, allow anadministrative fine schedule for minor, unambiguous disclosure violations (withreasonable appeals procedures), and allow candidate report filing on an electioncycle, rather than calendar year, basis.

The Administration's request of $38.5 million constituted a 5.5% increase over the $36.5 million appropriated for the agency in FY1999. Of the $38.5 million total,no less than $4.9 million was designated for computer modernization, 10.5% morethan was earmarked for such purposes in the prior year. While the agency has beencriticized as either overly intrusive or insufficiently vigilant in its enforcementcapacities, depending on the source, there has been widespread support for improvingthe automated data processing systems. Through greater availability and use ofelectronic disclosure, computer modernization is seen as a way to alleviate burdenson staff resources and enforcement functions.

The Senate adopted its Appropriations Committee's recommendation of $38,175,000 for the FEC, $341,000 less than was requested. Of the total, no lessthan $4.9 million would be designated for computer modernization--the sameamount specified in the Administration's request. The House approved itsAppropriations Committee's recommendation for $38,152,000--$364,000 less thanwas requested, and with the proviso that no less than $4.9 million would bedesignated for computer modernization. The House total reflected a cut of fivefull-time positions from the nine new ones requested. The House appropriationfigure was $23,000 lower than the Senate figure, but both earmarked the same $4.9million for computer modernization. The conference committee accepted, andCongress agreed to, the House-approved appropriation of $38,152,000.

The three legislative provisions ultimately enacted had been included first in the House bill, as per its Treasury subcommittee's recommendation. The Senate versiondid not contain these provisions. The conference committee accepted, and Congressagreed to, the provisions earlier approved by the House.

Federal Labor Relations Authority (FLRA). P.L. 106-58 provides funding of $23,828,000 forthe FLRA. This amount matches the President's budget request and is 5.5% abovethe $22,586,000 appropriated in FY 1999. This was also the House-passed fundingand is $147,000 more than that passed by the Senate. The agency serves as a neutralparty in the settlement of disputes that arise between unions, employees, and agencieson matters outlined in the federal service labor management relations statute; decidesmajor policy issues; prescribes regulations; and disseminates information appropriateto the needs of agencies, labor organizations, and the public.

General Services Administration (GSA). Established in 1949, GSA administers andcoordinates the federal civilian acquisition policy program. The agency also overseesthe management of federal real and surplus property, which includes the constructionand maintenance of federal buildings. Other functions include transportation,telecommunications, and information systems technology management.

For FY2000, the President requested $158,316,000 for GSA's operating expenses. The President's request also prescribed $5,345,100,000 (from revenues)in new obligational authority for GSA's Federal Buildings Fund for real propertymanagement and related activities. P.L. 106-58 provides funding for GSA at$151,781,000, more than the Senate had voted and less than the House. Theprinciple difference is in the policy and operations account.

On July 13, 1999, the House Committee on Appropriations agreed to a funding level of $146,006,000 for GSA's FY2000 operating expenses. The House, inpassing H.R. 2490, did not change the funding level further.

In their June 24 report, the Senate committee recommended that funds in the Federal Buildings Fund be transferred to meet program requirements, subject toadvance approval by the Appropriations Committees. No funds were to be used inFY2001 for courthouse construction not meeting the Administrative Office of theU.S. Court's five-year plan and design standards. Any new proposed constructionplan was required to include a standardized courtroom utilization study. No fundswere to be used to provide cleaning services or security enhancements usuallyprovided through the Federal Buildings Fund to any agency not paying GSA'sassessed costs. Claims against the government of less than $250,000 from directconstruction were to be liquidated from savings in other projects, with priornotification to the Appropriations Committees. Funds made available for newconstruction projects by the Omnibus Consolidated Appropriations Act of 1997(Public Law 104-208) were to remain available prior to September 30, 1999. A totalof $59,203,500 is not to be made available for rental of space and $59,203,500 is notto be made available for building operations from the "Federal Buildings FundLimitations on Availability of Revenue."

During floor consideration and adoption of S. 1282 on July 1, 1999, in addition to funding of GSA at $156,297,000, two GSA amendments were agreed to by theSenate. Senate Amendment No. 1192 increased the aggregate amount available inthe Federal Buildings Fund to $5,261,478,000. The Campbell Amendment (No.1218), agreed to by voice vote, reaffirmed aggregate reductions in the FederalBuildings Fund for rental of space and buildings operations.

Merit Systems Protection Board (MSPB). P.L. 106-58 provides funding of $27,586,000 forthe MSPB. Additionally, $2,430,000 will be transferred from the Civil ServiceRetirement and Disability trust fund for administrative expenses to adjudicateretirement appeals. This amount matches the President's budget request. Theagency's FY 1999 appropriation was $25,805,000 and emergency funding of $66,000was provided for Y2K conversion. These amounts totaled $25,871,000. The law,not including the trust fund transfer, is 6.9% above the $25,805,000 and 6.6% abovethe $25,871,000. The funding provided by the law was also the House-passedamount and is $164,000 more than that passed by the Senate. The MSPB assistsfederal agencies in running a merit-based civil service system.

National Archives and Records Administration (NARA). The custodian of the historically valuable recordsof the federal government since its establishment in 1934, NARA also prescribespolicy and provides both guidance and management assistance concerning the entirelife cycle of federal records. It also administers the presidential libraries system;publishes the laws, regulations, and presidential and other documents; and assists theInformation Security Oversight Office (ISOO), which manages federal securityclassification and declassification policies, and the National Historical Publicationsand Records Commission (NHPRC), which makes grants nationwide to helpnonprofit organizations identify, preserve, and provide access to materials thatdocument American history.

P.L. 106-58 provides $223,468,000 in funding for NARA. This funding level is higher than either the House or Senate had originally passed. It represents morefunding for repairs and restoration than either version. The operating expenses arethe same as those passed by the House but higher than the Senate's figure.

In the House, the July 15, 1999, passage of H.R. 2490 resulted in a recommendation of $180,398,000 for NARA FY2000 operating expenses. Thisamount is $6,054,000 less than the $186,452,000 requested by the President, and is$44,216,000 less than the $224,614,000 appropriated for FY1999. Operatingexpenses include costs incurred in connection with the administration of NARA(including ISOO), archived federal records and related activities, and the review anddeclassification of documents. The additional $6 million requested for FY2000 forNHPRC operations and programs, which is $4 million less than the amountappropriated for the commission for FY1999, was recommended by the committee,as well. The panel also agreed to the President's recommendation of theestablishment of a records center revolving fund and an appropriation of $22,000,000as initial capitalization of the fund. This revolving fund is available for expenses andequipment necessary to provide for storage and related services for all temporary andprearchival federal records to be or actually stored at federal national and regionalrecords centers by agencies and other instrumentalities of the federal government.

In the Senate, the FY2000 funding levels for NARA provided in S. 1282, as amended and reported from committee, remained unchanged during floorconsideration and adoption of the bill on July 1, 1999. As reported on June 24, 1999,the bill recommended $179,738,000 for NARA FY2000 operating expenses. Thisamount was $6,714,000 less than the $186,452,000 requested by the President, andwas $44,876,000 less than the $224,614,000 appropriated for FY1999. The $6million requested for NHPRC FY2000 operations and programs was met by theSenate committee and an additional $250,000 was included, making the total amountrecommended $6,250,000. The additional $250,000 was provided for the FortBuford reconstruction project, deemed "an important Lewis and Clark 'Corps ofDiscovery' site" by the committee. The records center revolving fund and its initial$22 million capitalization as recommended in the President's budget was alsoadopted by the committee.

Office of Government Ethics (OGE). The Office of Government Ethics, a small agency within the executive branch, wasestablished by the Ethics in Government Act of 1978. Originally part of the Officeof Personnel Management, OGE became a separate agency on October 1, 1989, aspart of the Office of Government Ethics Reorganization Act of 1988. The Office ofGovernment Ethics exercises leadership in the executive branch to prevent conflictsof interest on the part of government employees, and to resolve those conflicts ofinterest that do occur. In partnership with executive branch agencies anddepartments, OGE fosters high ethical standards for employees and strengthens thepublic's confidence that the Government's business is conducted with impartialityand integrity. P.L. 106-58 provides funding of $9,114,000, the same amount as the FY2000 budget request. This is a 7.3% ($622,000) increase from the $8,492,000appropriated for FY1999. During congressional consideration of the measure, theHouse voted the amount requested by the President. However, when the Senatepassed the measure, it included$9,071,000 for OGE, $43,000 less than the budgetrequest.

Office of Personnel Management (OPM). P.L. 106-58 provides a total current appropriationof $14,354,105,000 for OPM. Funding of $90,584,000 is provided for the salariesand expenses account. (This was the House-passed amount and is $1,000,000 lessthan the Senate-passed funding and the President's budget request.) The law alsoprovides an appropriation of $960,000 for the Office of Inspector General (OIG)salaries and expenses and mandatory funding of $5,105,482,000 for the governmentpayment for annuitants of the employees health benefits program (FEHB),$36,207,000 for the government payment for annuitants of the employees lifeinsurance program, and $9,120,872,000 for payment to the civil service retirementand disability fund. Trust fund transfers of $95,486,000 for salaries and expensesand $9,645,000 for OIG salaries and expenses are provided as well. (In FY 1999,$91,236,000 for salaries and expenses and $9,145,000 for OIG salaries and expenseswere transferred from trust funds.) The agency's FY 1999 appropriation was$13,478,212,000 and emergency funding of $2,428,000 was provided for Y2Kconversion. These amounts totaled $13,480,640,000. Not including the trust fundtransfers, the combined discretionary and mandatory funding provided by the law is6.5% above the FY 1999 amount for the agency which is responsible foradministering personnel management functions.

Office of Special Counsel (OSC). P.L. 106-58 provides funding of $9,740,000 for the OSC. This amount matches thePresident's budget request. The agency's FY1999 appropriation was $8,720,000 andemergency funding of $100,000 was provided for Y2K conversion. These amountstotaled $8,820,000. The funding level in the act is 11.7% above the $8,720,000 and10.4% above the $8,820,000. The funding provided by the act was also theHouse-passed amount and is $51,000 more than that passed by the Senate. According to the conference report, "the conferees are concerned about the numberof backlogged cases" and "direct OSC to report back within 90 days after enactmentof this Act, on the number of cases pending that have exceeded the statutory timerequirements, including requirements for referral." (30) The OSC investigates federalemployee allegations of prohibited personnel practices and, when appropriate,prosecutes before the Merit Systems Protection Board; provides a channel for whistleblowing by federal employees; and enforces the Hatch Act.

Federal Child Care

P.L. 106-58 permits the use of executive branch agency funds (otherwiseavailable for salaries) to provide child care services for low-income federalemployees (section 643).

The Senate, in passing S. 1282, added a title to the bill (Amendment No. 1197) that would have established new requirements for child care facilities operated byfederal agencies, including legislative and judicial branch agencies, for theiremployees. The provision would require that executive facilities meet state or locallicensing standards within six months of the legislation's enactment, and comply with(or have made substantial progress towards complying with) standards set by a stateor nationally recognized accreditation entity within three years of enactment.

The Senate bill also would have required regulations, set by the Administrator of General Services, establishing health and safety standards for federal agency childcare programs. Legislative agency facilities would be required to meet a state ornationally recognized accreditation entity's standards within one year of the bill'senactment. If the legislative facility does not maintain accreditation, it must followregulations no less stringent than those of executive agency facilities. Judicialbranch facilities would also be required to meet regulations (issued by theAdministrative Office of the United States Courts) pertaining to licensing andaccreditation that are no less stringent than those of executive branch agencies. Executive branch agencies would be authorized to use agency funds to provide childcare for employees and to improve the affordability of such care for low-incomeemployees. The amendment would also authorize $900,000 in fiscal year 2000, andsuch sums thereafter, for an interagency council of federal agencies to share bestpractices and coordinate policy with regard to child care. A similar amendment wasoffered to the FY1999 Treasury bill, adopted in the Senate, and fell in conference.

H.R. 2490, as passed by the House, July 15, 1999, included the provision (also included in S. 1282) allowing executive branch federal agencies (not including theGeneral Accounting Office) to use agency funds to provide child care services, in afacility owned or leased by the agency, for employees of the agency, provided thesefunds are used to improve the affordability of child care for low-income federalemployees. It did not contain the other child care provisions included in the Senatebill. However, on July 19, 1999, the Senate incorporated the provisions of S. 1282 as an amendment (Title VII) to H.R. 2490, and passed this companion measure,numbered H.R. 2490, in lieu of S. 1282.

In conference, the conferees agreed to delete Title VII of H.R. 2490. The conference report ( H.Rept. 106-319 ) filed on September 14, 1999, and subsequentlyapproved by the House and Senate, does not contain all of the federal child careprovisions originally proposed in the Senate's bill, S. 1282. Instead, the conferencereport includes only the provisions contained in the original House proposal,permitting the use of agency funds (otherwise available for salaries) to provide childcare services for low-income federal employees.

Pay Issues

Public Law 106-58, has some significant pay provisions and is gaining a gooddeal of attention by provisions that are absent. Specific rates for all affected paysystems will be promulgated in late December or early January through an ExecutiveOrder.

President's Pay

Section 644 provides that, effective noon January 20, 2001, the pay of the President will be increased to $400,000 per annum . It has been $200,000 sinceJanuary 1969. There is a constitutional proscription on increasing or decreasing thepay of a President during the term for which he was elected. Therefore, Mr. Clintonwill not benefit from this increase.

The President must pay federal income tax on his salary. There is an official expense allowance of $50,000. That allowance, which has been the same rate since1949, can be used for official purposes only, is not subject to income tax. Any unusedportion reverts to the U.S. Treasury.

Members of Congress and Other Federal Officials

Under the provisions of the Ethics Reform Act of 1989, (31) Members and otherofficials of Congress, the Vice President, executive branch officials, and federaljudges are to receive an annual adjustment in pay. Adjustments are based on thepercent of change in the private sector wages and salaries element of the EmploymentCost Index (ECI) minus 0.5% They are to go into effect at the same time as, and ata rate no greater than, the rate adjustments for the General Schedule. The rate ofchange in the private sector, December 1997 to December 1998, was 3.9%. Therefore the rate of pay adjustment, effective January 2000, for federal officials willbe 3.4%.

The significance of this bill to the pay adjustment for federal officials is that since 1995, with the exception of the adjustment in January 1998, Congress has actedlegislatively to deny themselves and other federal officials the annual adjustment. The legislative vehicle for that denial has been the Treasury appropriations bill.

Federal judges' salary adjustments are subject to further legislative activity. While the Ethics Reform Act includes those adjustments in the automaticmechanism, there is further statutory restriction. (32) Congress has required that theyspecifically authorize any such adjustment. Traditionally, that authorization hascome through the Commerce, State, Justice, and Judiciary Appropriations. TheFY2000 appropriations bill for those accounts (H.R. 2670), as it passed the Senate,contains the authorization. It is assumed that the bill, as it comes out of conference,will contain the authorization language. Congress has consistently authorized the payadjustments whenever there has been an increase for other federal officials.

Federal Employees

General Schedule. Federal employees under the General Schedule (GS) and related pay systems will receive a4.8% pay adjustment effective the first pay period beginning on or after January 1,2000. Section. Under the provisions of 5 U.S.C. 5303, the national GS base payadjustment is to be 3.8%. It is assumed that, since the President did not present analternative plan to Congress, that rate will go into effect. The remaining 1% is to beused for locality-based payments (5 U.S.C. 5304). The explanatory language forSection 646 of the bill, as found in the conference report states

...The conferees have not made the language more specific so that the President may exercise his discretion to distributeany amount allocated for comparability-based locality payments in the mostappropriate fashion among the pay localities established by the President's PayAgent. (33)

The President would generally have until the end of November to submit an alternate plan relating to locality-based comparability payments. However, since the statutespecifies the total pay adjustment and, in effect, limits it to a percentage rate lowerthan would be effective under 5 U.S.C. 5304, it may not be necessary for thePresident to submit such plan.

Both the House- and Senate-passed versions of the Treasury bill had assumed a federal civilian pay increase of 4.4% in January 2000. The Senate committee reportstated that, in order to stay within its 302(b) allocations, both budget authority andoutlays had to be reduced without harming essential programs. Therefore, thecommittee said that it "was forced to deny all requests for additional funding, tocover the remaining months of the calendar year 1999 statutory annual payadjustment." Employees whose salaries are administratively determined and who donot receive the government-wide adjustments were the only exception to thisacross-the-board reduction. (34) The House-passed,but not the Senate-passed Treasurybill included a statement relating to the Sense of the Congress on the federal civilianpay adjustment. President Clinton had proposed a 4.4% pay adjustment for federalemployees in his FY 2000 budget. This amount was the overall average increase,including locality pay adjustments. Legislation passed the Senate (S. 4 ,106thCongress) providing a 4.8% military pay adjustment. (35) That measure and a FY1999emergency supplemental ( P.L. 106-31 ) contain Sense of the Congress resolutionscalling for parity between the military pay adjustment and that for civilianpersonnel. (36) The House-passed Treasury billincluded this same Sense of theCongress language.

Federal Wage System. Blue-collar employees paid under the Federal Wage System have their payadjustments limited by P.L. 106-58 . Section 613 continues the limitation on thoseadjustments to a formula based on the GS adjustments. Pay under this system issupposed to be set subsequent to wage surveys conducted in over 130 wage surveyareas throughout the United States. Those surveys are conducted, but the payadjustments have been limited through language in the Treasury bill for several years.

Other. The Senior Executive Service (SES) and other pay systems, such as the Administrative Law Judges, willhave the caps raised on their salaries. There are several systems which are limitedto salary rates on the Executive Schedule. Those increase by 3.4% in January. ThePresident has the responsibility, administratively, to set the specific SES rates.

Buy Outs and Early Retirement

Section 411 details the procedures under which the General ServicesAdministrator is authorized to offer voluntary separation incentives in order toprovide the necessary flexibility in carrying out the closing of the Federal SupplyService distribution centers and other related activities. The authority, carrying withit a maximum payment of $25,000, is effective through April 30, 2001.

Section 651 authorizes a voluntary early retirement for federal employees. That authority would be subject to Office of Personnel Management approval andinstruction.

Major Funding Trends

In summary and prior to scorekeeping adjustments by the Congressional BudgetOffice (CBO), the Administration has requested a total of $27,997,054,000 foraccounts within this appropriation. The funding enacted for FY2000 under P.L.106-58 totals $27,972,418,000.

The House and Senate data for FY1999 enacted are different. The House shows $27,922,712,000 as a grand total in budget authority and the Senate shows$27,915,604,000. Using either figure, the FY2000 levels approved by the HouseSubcommittee and the Senate Committee represent an increase over the FY1999enacted level of $26,978,249,000. The House Treasury AppropriationsSubcommittee recommended a FY2000 funding level of $28,095,811,000. And theSenate Committee on Appropriations reported a funding level of $27,737,971,000. (37)

FY2000 enacted mandatory funding is $14,533,811,000, according to House documents, using CBO scorekeeping data. That figure corresponds to the FY2000request for mandatories, compared to $13,656,152,000 enacted for FY1999..

According to the House documents, the FY2000 request for discretionary funding is $13,926,438,000, an increase over $13,465,985,000, FY1999 enacted. The FY2000 enacted is $13,706,000. The House Committee mark for discretionaryfunding was $13,466,056,000 and the Senate would have provided $13,434,138,000in discretionary funding. The Administration is shown to have requested$132,127,000 for the crime trust fund as compared to the FY1999 enacted level of$132,000,000. The FY2000 enacted level is $132,000,000. The House committeerecommended that funding level. The Senate, however, would have increased theamount to $194,000,000 in this account.

Table 2. Appropriations for the Treasury, Postal Service, Executive Office of the President, and General Government, FY1995 toFY1999 (in billions of current dollars) a

Source for FY1999: U.S. Congress, House, Committee on Appropriations, as of July 13, 1999.

a These figures, in current dollars, include CBO adjustments for permanent budgetauthorities, rescissions, supplementals, as well as other elements factored into theCBO scorekeeping process. For a brief presentation on CBO scorekeeping see: U.S.Congressional Budget Office, Maintaining Budgetary Discipline: Spending andRevenue Options (Washington: GOP, 1999). The appendix beginning on p. 281provides the "Scorekeeping Guidelines" as found in the conference report to theBalanced Budget Act of 1997. Also available at http://www.cbo.gov/ .

Table 3. Treasury, Postal Service, ExecutiveOffice of the President and General Government Appropriation, FY2000, byTitle (In millions, without CBO scorekeeping)

Source: The source for the House data is the House Committee on Appropriations. The Senate data are also from the House Committee, as released to them by theSenate July 14, 1999. The FY2000 enacted data are provided by the HouseCommittee on Appropriations.

Table 4. Department of Treasury, Postal Service,Executive Office of the President, and General GovernmentAppropriations (in thousands of dollars)

Source: U.S. Congress, House, Committee on Appropriations, as of September 9, 1999.

Table 4 Notes :

a Treasury Departmental Offices-- FY1999 enacted includes the following emergency funding accounts: Salaries and expenses, $1,500,000 for counterdrugactivities and $1,238,000 for Y2K conversion; and three Automation enhancementfunding points for Y2K conversion, totaling $52,665,000.

b Treasury Building Fund-- FY1999 statute requires delay in obligating the $27,000,000 until the close of the fiscal year.

c Law Enforcement Training Center-- FY1999 enacted includes $3,548,000 in emergency funding for antiterrorism.

d Financial Management Center-- FY1999 enacted includes $6,000,000 in emergency funding for Y2K conversion.

e ATF--FY1999 enacted includes three Y2K conversion funding points totaling $11,195,000 and excludes $2,206,000 delayed obligation of appropriated funds. TheY2K funding was subject to a rescission of $4,500,000. Neither congressionalversion includes the budget request for $15,000,000 to fund laboratory facilities andheadquarters.

f Customs-- FY1999 enacted includes three emergency funding counterdrug items totaling $276,000,000, Y2K conversion emergency funding at $10,200,000, andexcludes $9,500,000 delayed obligation of appropriated funds. Note that theCommittee print out provides the total shown for FY1999 enacted, however, a tallyof the individual accounts shown results in a total of $2,037,953,000. The Senatereport shows another $1,701,000.

g Public Debt--FY1999 enacted includes $1,000,000 in Y2K conversion emergency funding.

h IRS--Total for IRS reflects funding adjustments presented in notes for specific accounts within the IRS account.

i Processing--FY1999 enacted does not reflect $130,000,000 delayed obligation of appropriated funds.

j Information Systems--FY1999 enacted includes $483,000,000 and $22,312,000 in Y2K conversion emergency funding.

k U.S. Secret Service--FY1999 enacted includes $80,808,000 in emergency funding for antiterrorism and two emergency funding items totaling $3,695,000 for Y2Kconversion. It does not exclude $5,000,000 delayed obligation of appropriated funds.

l USPS--FY1999 does not exclude $71,195 delayed obligation.

m The Council on Environmental Quality/Office of Environmental Quality, Office of Science and Technology Policy, and the Office of the United States TradeRepresentative are funded under other appropriations.

n Since 1969, the President's salary has been $200,000 per annum . Since 1949, the expense allowance has been $50,000 per annum. .

o Off. of Admin.--FY1999 enacted includes three Y2K conversion items of emergency funding totaling $29,791,000.

p ONDCP--FY1999 enacted includes counterdrug emergency funding of $1,200,000. P.L. 106-58 creates a new line item which would fund the Counterdrug TechnologyAssessment Center separately, instead of previous practice of including it in thegeneral ONDCP account.

q ONDCP Federal Drug Control--Since these funds are not for operations of the Executive Office of the President (EOP), but are to be transferred to federal, state andlocal agencies for anti-drug operations, they are not included in the EOP operationsfunds. The funds are under the control of the ONDCP. FY1999 enacted for theSpecial forfeiture fund includes $2,000,000 in counterdrug emergency funding.

r Unanticipated Needs--FY1999 enacted reflects $30,000,000 in emergency funding, as reduced by a $10,000,000 rescission.

s FEC--FY1999 enacted includes $243,000 in emergency funding for counterdrug.

t GSA total--FY1999 enacted includes $22,503,000 in emergency funding. The FY1999 agency regular appropriation was $593,853,000.

u GSA Policy and Operations--The House documents show FY1999 enacted with five Y2K conversion items of emergency funding totaling $48,407,000. The SenateReport shows FY1999 enacted with four Y2K conversion items of emergencyfunding totaling $41,299,000.

v NARA total--FY1999 enacted includes $6,662,000 in Y2K conversion emergency funding, but does not exclude a total of $11,861,000 delayed obligations.

w NARA Operating expenses--FY1999 enacted includes $6,662,000 in Y2K conversion emergency funding, but does not exclude $7,861,000 delayed obligations.

x NARA/NHPRC--FY1999 does not include a $4,000,000 obligation delay. The FY2000 totals do not reflect proposed rescissions of $4,000,000 and $3,800,000 bythe House and Senate respectively.

y OSC--FY1999 enacted includes $1,00,000 in Y2K conversion emergency funding.

Glossary of Budget Process Terms

The following definitions are selected from the "Glossary of Budgetary Terms"as found in Manual on the Federal Budget Process , a CRS report (98-720) by RobertKeith in consultation with Alan Schick.

Account. A control and reporting unit for budgeting an accounting.

Appropriation. A provision of law providing budget authority that permits federal agencies to incur obligations and to make payments of the U.S. Treasury for specifiedpurposes. Annual appropriations are provided in appropriations acts; mostpermanent appropriations are provided in substantive law.

Authorization. A provision in law that authorizes appropriations for a program or agency.

Budget Authority. Authority provided by law to enter into obligations that normally result in outlays. The main forms of budget authority are appropriations, borrowingauthority, and contract authority.

Budget Resolution. A concurrent resolution passed by both Houses of Congress, but not requiring the signature of the President, setting forth the congressional budget forat least the next five fiscal years. The budget resolution sets forth various budgettotals and functional allocations, and may include reconciliation instructions, todesignated House or Senate committees.

Continuing Resolution. An act (in the form of a joint resolution) that provides budget authority to agencies or programs whose regular appropriation has not beenenacted after the new fiscal year has started. A continuing resolution usually is atemporary measure that expires on a specified date or is superseded by enactment ofthe regular appropriations act. Some continuing resolutions, however, are in effectfor the remainder of the fiscal year and are the means of enacting regularappropriations.

Direct Spending. Budget authority, and the resulting outlays, provided in laws other than annual appropriations acts. Appropriated entitlements are classified as directspending. Direct spending is distinguished by the Budget Enforcement Act fromdiscretionary spending and is subject to the PAGO rules. It is also referred to as"mandatory spending."

Discretionary Spending. Budget authority, and the resulting outlays, provided in annual appropriations acts, but not including appropriated entitlements.

Federal Funds. All monies collected and spent by the federal government other than those designated as trust funds. Federal funds include general, special, publicenterprise, and intragovernmental funds.

Mandatory Spending. See "Direct Spending."

Obligation. A binding agreement (such as through a contract or purchase order) that will require payment.

Outlays. Payments made (generally through the issuance of checks or disbursement of cash) to liquidate obligations. Outlays during a fiscal year may be for payment ofobligations incurred in prior years or in the same year.

PAGO (Pay-as-You-Go) Process. The procedure established by the Budget Enforcement Act to ensure that revenue and direct spending legislation does not addto the deficit or reduce the surplus. PAGO requires that any increase in the deficitor reduction in the surplus due to legislation be offset by other legislation orsequestration. PAGO is enforced by estimating the five-year budgetary effects of allnew revenue and direct spending laws.

Reconciliation Process. A process established in the Congressional Budget Act by which Congress changes existing laws to conform tax and spending levels to thelevels set in a budget resolution. Changes recommended by committees pursuant toa reconciliation instruction are incorporated into a reconciliation bill.

Revolving Fund. An account or fund in which all income derived from its operations is available to finance the fund's continuing operations without fiscal year limitation.

Scorekeeping. Procedures for tracking and reporting on the status of congressional budgetary actions affecting budget authority, receipt, outlays, the surplus or deficit,and the public debt limit.

Supplemental Appropriation. Budget authority provided in an appropriations act in addition to regular or continuing appropriations already provided. Supplementalappropriations acts sometimes include items not included in regular appropriationsacts for lack of timely authorization.

Trust Funds. Accounts designated by law as trust funds for receipts and expenditures earmarked for specific purposes.

User Fees. Fees charged to users of goods or services provided by the federal government. In levying or authorizing these fees, Congress determines whether therevenue should go into the U.S. Treasury or should be available to the agencyproviding the goods or services.

For Additional Reading

CRS Issue Briefs

CRS Issue Brief IB98024, Federal Employees and the FY1999 Budget , by [author name scrubbed].

CRS Issue Brief IB95035, Federal Regulatory Reform: An Overview , by Roger Garcia.

CRS Issue Brief IB10014, Gun Control , by Keith Alan Bea and [author name scrubbed].

CRS Issue Brief IB89148, Item Veto and Expanded Impoundment Proposals , by [author name scrubbed].

CRS Issue Brief IB95083, Postal Service's Mail Monopoly: Is It Time for Change? , by Bernevia McCalip.

CRS Issue Brief IB97036, The Year-2000 Problem: Congressional Issues , by Richard Nunno.

CRS Info Packs

CRS Info Pack 517G, Government Performance and Results Act: implementing the results .

CRS Reports

CRS Report 97-635(pdf) , The Balanced Budget Act of 1997: Retirement and Health Insurance Provisions for Postal and Federal Personnel , by Carolyn L. Merck.

CRS Report 98-829, Brady Act Firearm Purchase Requirements Summarized , by [author name scrubbed].

CRS Report 98-814 , Budget Reconciliation Legislation: Development and Consideration , by Bill Heniff, Jr.

CRS Report RL30021(pdf) , Child Care Issues in the 106th Congress , by [author name scrubbed] andMelinda T. Gish.

CRS Report RS20255, Civil Service Retirement Bills in the 106th Congress , byPatrick J. Purcell.

CRS Report 97-892, Continuing Appropriations Acts: Brief Overview of Recent Practices , by [author name scrubbed]

CRS Report 97-1008, Federal Pay: FY1999 Salary Adjustments , by [author name scrubbed].

CRS Report 98-956, Federal Pay: FY2000 Salary Adjustment, by [author name scrubbed].

CRS Report RS20403, FY2000 Consolidated Appropriations Act: Reference Guide , by [author name scrubbed]..

CRS Report RS20257(pdf) , Government Performance and Results Act: Brief History and Implementation Activities During the First Session of the 106thCongress , by [author name scrubbed].

CRS Report 97-382, Government Performance and Results Act: Implications for Congressional Oversight , by [author name scrubbed] and [author name scrubbed].

CRS Report 97-70(pdf) , Government Performance and Results Act, P.L. 103-62 : Implementation Through Fall 1996 and Issues for the 105th Congress , by[author name scrubbed].

CRS Report RS20183, Immigration and Naturalization Service's FY2000 Budget , by [author name scrubbed].

CRS Report 98-4, Implementation of P.L. 105-206 : Personnel Management Flexibility for the Internal Revenue Service , by [author name scrubbed].

CRS Report 98-721 , Introduction to the Federal Budget Process, by [author name scrubbed].

CRS Report 98-720(pdf) , Manual on the Federal Budget Process, by [author name scrubbed].

CRS Report 97-72, Performance-Based Organizations in the Federal Government: A Reinvention Innovation , by [author name scrubbed].

CRS Report 97-974, Reorganization Proposals for U.S. Border Management Agencies , by Frederick Kaiser.

CRS Report 98-53, Salaries of Federal Officials , by [author name scrubbed].

CRS Report RL30014, Salaries of Members of Congress: Current Procedures and Recent Adjustments , by [author name scrubbed].

CRS Report 97-1011 , Salaries of Members of Congress: Payable Rates and Effective Dates, 1789-1999 , by [author name scrubbed].

CRS Report RS20114, Salary of the President Compared with That of Other Federal Officials , by [author name scrubbed].

CRS Report RS20115 , Salary of the President: Process for Change , by [author name scrubbed].

CRS Report 98-844, Shutdown of the Federal Government: Causes, Effects, and Process , by [author name scrubbed].

CRS Report 97-216, Treasury-Inflation Protection Securities: A Fact Sheet , by James Bickley.

CRS Report 97-134, Treasury-Inflation Protection Securities: Description, Goals, and Policy Issues , by James Bickley.

CRS Report 98-202, Treasury, Postal Service, Executive Office of the President, and General Government: Appropriations for FY1999, by [author name scrubbed]and [author name scrubbed].

CRS Report 98-377, Year 2000 Problem: Chronology of Hearings and Legislation in the 104th and 105th Congresses , by Richard Nunno.

CRS Report 98-967, Year 2000 Problem: Potential Impacts on National Infrastructures, by Richard Nunno.

Other Readings

Syracuse University, Maxwell School of Citizenship and Public Affairs, Government Performance Project, Grading Government , (Syracuse, N.Y.:Syracuse University, February 1999).

U.S. Congress, Senate, Committee on Appropriations, Treasury and General Government Appropriation Bill, 2000 , report to accompany s. 1282, 106thCong., 1st sess., S.Rept. 106-5887 (Washington: GPO, 1999).

U.S. Congressional Budget Office, Maintaining Budgetary Discipline: Spending and Revenue Options (Washington: GPO, 1999). [Available on CBO Website.]

U.S. Department of the Treasury, U.S. Customs Service, U.S. Customs Service Strategic Plan (FY97-02), by Commissioner of Customs George Weiss,(Washington: U.S. Customs Service, August 1, 1997).

U.S. General Accounting Office, High Risk Series, IRS Management , GAO report HR 97-8, (Washington: February 1997).

-----, Customs Service: Comments on Strategic Plan and Resource Allocation Process, GAO report GGD-98-15, (Washington: October 16, 1998).

-----, Major Management Challenges and Program Risks: Department of the Treasury , GAO report OCG-99-14, (Washington: October 21, 1998).

U.S. Office of Management and Budget, Progress on Year 2000 Conversion, A Quarterly Report to Congress, (Washington: March 1999).

Selected World Wide Web Sites

Important information regarding current and past budgets (including budget documents), the federal budget process, and duties and functions are available atthe following web or gopher sites.

Congressional Budget Office (CBO). http://www.cbo.gov

General Accounting Office (GAO). http://www.gao.gov

National Commission on Restructuring the Internal Revenue Service http://www.house.gov/natcommirs/main.htm

Office of Government Ethics http://www.usoge.gov

Office of Management and Budget (OMB). http://www.whitehouse.Gov/WH/EOP/OMB/html/ombhome.html

Office of Management and Budget, Statements of Administration Policy (SAPS) http://www.whitehouse.Gov/WH/EOP/OMB/SAP