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From the House Reports Online via GPO Access
[wais.access.gpo.gov]
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-631
_______________________________________________________________________
DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS BILL,
1997
_______
June 19, 1996.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Wolf, from the Committee on Appropriations, submitted the following
R E P O R T
[To accompany H.R. 3675]
The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
appropriations for the Department of Transportation and related
agencies for the fiscal year ending September 30, 1997.
INDEX TO BILL AND REPORT
_______________________________________________________________________
Page number
Bill Report
Narrative summary of Committee action...................... 1
2
Program, project, and activity.............................
3
Title I--Department of Transportation:
Office of the Secretary.................... 2
4
Coast Guard................................ 6
13
Federal Aviation Administration............ 11
34
Federal Highway Administration............. 16
65
National Highway Traffic Safety
Administration......................... 18
101
Federal Railroad Administration............ 21
113
Federal Transit Administration............. 26
126
Saint Lawrence Seaway Development
Corporation............................ 34
167
Research and Special Programs
Administration......................... 35
168
Office of Inspector General................ 36
173
Bureau of Transportation Statistics........
174
Surface Transportation Board............... 37
174
Title II--Related Agencies:
Architectural and Transportation Barriers
Compliance Board....................... 37
176
National Transportation Safety Board....... 38
176
Panama Canal Commission....................
178
Title III--General Provisions...................... 38
179
Title IV--Miscellaneous Highway Provisions......... 55
181
House Report Requirements:
Inflationary impact statement..............
181
Rescissions................................
182
Transfers of funds.........................
182
Changes in existing law....................
184
Appropriations not authorized by law...............
189
Comparison with budget resolution..........
189
Five-year projections of outlays...........
190
Financial assistance to state and local
governments............................
190
Tabular summary of the bill................
192
Summary of the Bill
The accompanying bill would provide $12,460,311,000 in new
budget (obligational) authority for the programs of the
Department of Transportation and related agencies, a decrease
of $167,604,627 below the $12,627,915,627 requested in the
budget.
The Committee has also recommended limitations on
obligations for a number of programs that are, for the most
part, financed by multi-year contract authority in legislative
acts. The total of the limitations on obligations for these
programs is $22,422,450,000. This is $367,160,000 above the
levels enacted in fiscal year 1996, and $630,922,000 below the
levels requested in the budget. An additional $2,055,000,000 is
estimated to be obligated for federal-aid highway programs
exempt from the obligation limitation in the bill.
The total recommended obligational authority (new budget
authority, limitations on obligations, and exempt obligations)
amounts to $36,937,761,000. This is $263,755,021 more than
comparable fiscal year 1996 enacted levels, and $58,328,627
less than the budget request.
Major Recommendations
Selected major recommendations in the accompanying bill
are:
(1) A provision providing for total obligations,
including exempt obligations, of $19,605,000,000 for
federal-aid highways;
(2) A provision providing for $1,300,000,000 for
grants-in-aid for airports;
(3) An appropriation of $4,900,000,000 for operations
of the Federal Aviation Administration, an increase of
$254,288,000 above the fiscal year 1996 level,
including funds to provide a net increase of 250
additional air traffic controllers, 100 additional
airline operations inspectors, 54 additional air
worthiness inspectors, 75 additional engineers and
pilots, and 29 additional manufacturing certification
inspectors;
(4) An appropriation of $2,609,100,000 for operating
expenses of the Coast Guard, an increase of $30,109,000
above the fiscal year 1996 level;
(5) An appropriation of $462,000,000 for grants to
the National Railroad Passenger Corporation (Amtrak),
to cover operating losses and capital expenses, and an
appropriation of $80,000,000 for high-speed rail
trainsets and facilities;
(6) A total of $2,052,925,000 for the Federal Transit
Administration's formula grants program, including
$400,000,000 for transit operating assistance;
(7) A provision providing for obligations of not to
exceed $1,665,000,000 for the discretionary grants
program of the Federal Transit Administration;
(8) An appropriation of $200,000,000 for construction
of the Washington, D.C. metrorail system;
(9) A total of $204,637,000 for the Office of the
Secretary, $28,926,000 below fiscal year 1996 and
$28,535,000 below the budget request;
(10) The bill includes a total of $51,300,000 in
offsetting collections for Coast Guard, Acquisition,
construction, and improvements; Federal Aviation
Administration, Operations; Research and Special
Programs Administration, Research and special programs;
and Bureau of Transportation Statistics, airline
statistics; and
(11) The bill includes $2,400,000 for a National
Civil Aviation Review Commission.
Tabular Summary
A table summarizing the amounts provided for fiscal year
1996 and the amounts recommended in the bill for fiscal year
1997 compared with the budget estimates is included at the end
of this report.
Committee Hearings
The Committee has conducted extensive hearings on the
programs and projects provided for in the Department of
Transportation and Related Agencies Appropriations Bill for
fiscal year 1997. These hearings are contained in eight
published volumes totaling approximately 10,000 pages. The
Committee received testimony from officials of the executive
branch, Members of Congress, officials of the General
Accounting Office, officials of state and local governments,
and private citizens.
The bill recommendations for fiscal year 1997 have been
developed after careful consideration of all the information
available to the Committee.
Program, Project, and Activity
During fiscal year 1997, 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'' shall mean any item for which a dollar amount is
contained in an appropriations Act (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. This definition
shall apply to all programs for which new budget (obligational)
authority is provided, as well as to discretionary grants,
Federal Transit Administration. In addition, the percentage
reductions made pursuant to a sequestration order to funds
appropriated for facilities and equipment, Federal Aviation
Administration, and for acquisition, construction, and
improvements, Coast Guard, shall be applied equally to each
``budget item'' that is listed under said accounts in the
budget justifications submitted to the House and Senate
Committees on Appropriations as modified by subsequent
appropriations Acts and accompanying committee reports,
conference reports, or joint explanatory statements of the
committee of conference.
Safety Programs
In this bill, the Committee has worked hard to protect
funding for essential safety-related programs of the Department
of Transportation and the independent agencies. This has been
difficult, but not impossible, given the budget constraints
faced by the Federal Government this year. In some cases, funds
have been added to the administration's request for safety-
related activities. However, if, in the judgment of
departmental officials any of the Committee's recommendations
would significantly harm transportation safety, or if
unanticipated safety needs arise during the course of the
appropriations process, the Committee welcomes discussions with
the administration to adjust individual funding levels and
provide the funding needed. The bill also allows significant
flexibility through the reprogramming process, which requires
no further legislative action. The Committee will work with
administration officials to reprogram funds for safety programs
if that should be required.
TITLE I
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
Salaries and Expenses
Appropriation, fiscal year 1996 \1\..................... $56,189,000
Budget estimate, fiscal year 1997....................... 55,376,000
Recommended in the bill................................. 53,816,000
Bill compared with:
Appropriation, fiscal year 1996..................... -2,373,000
Budget estimate, fiscal year 1997................... -1,560,000
\1\ Excludes reductions of $2,365,352 to comply with working capital
fund, awards, and administrative reductions, and $78,000 to comply with
the Omnibus Consolidated Rescissions and Appropriations Act of 1996.
The bill provides $53,816,000 for salaries and expenses of
the various offices comprising the Office of the Secretary
(OST). This is $2,373,000 below the level enacted last year,
and $1,560,000 below the budget estimate. The Committee
recommendation assumes the following reductions from the budget
---------------------------------------------------------------------------
estimate:
Reductions in staff:
-2 public affairs specialists....................... -$150,000
-2 congressional affairs officers................... -150,000
-2 attorney advisors................................ -200,000
-1 staff assistant, immediate office of the deputy
secretary......................................... -60,000
-10 procurement analysts, office of acquisition..... -1,000,000
Reductions in staff.--The Committee recommendation
eliminates a number of positions in the office of the
secretary, including 2 public affairs specialists (-$150,000),
2 congressional affairs officers (-$150,000), 2 attorney
advisors (-$200,000) and 1 staff assistant in the immediate
office of the deputy secretary (-$60,000). In light of severe
budget constraints and government downsizing, it is the
Committee's belief that these positions can be eliminated
without affecting the core responsibilities, functions and
duties of the department.
The Committee recommendation also eliminates 10 procurement
analysts from the office of acquisition and grants management.
While the Committee once supported the department's intended
aggressive initiative to improve acquisition oversight at the
departmental level, the Committee now questions the value added
by limited, informal secretarial overviews. For example, the
Coast Guard indicated to the Committee that within the past
year no formal oversight reviews of its major acquisitions were
performed. Further, the FAA, which is responsible for the vast
majority of the department's major acquisitions, was provided
new acquisition authorities over the past year, and as a
result, the administrative offices of the secretary have little
if any oversight role.
Electronic tariff filing.--The bill includes a provision
that permits the Office of the Secretary to credit $1,000,000
in user fees to support the electronic tariff filing system.
Hispanic serving institutions.--The Committee applauds the
Department of Transportation on its efforts to enhance
educational and career opportunities for minority students in
the areas of science, technology and transportation matters.
The Committee acknowledges the activities of the Office of
Small and Disadvantaged Business Utilization (OSDBU),
university transportation centers (UTCs), and the Research and
Special Programs Administration (RSPA) in this regard. The
Committee strongly encourages the department, especially in its
planning and research components (including, but not limited,
to OSDBU, UTCs, and RSPA), to include participation by Hispanic
serving institutions in any current or future plans to increase
its pre-designated or targeted research, development and
education funds.
GENERAL PROVISIONS
Limitation on political and Presidential appointees.--The
Committee has included a provision in the bill (sec. 305),
similar to provisions in past Department of Transportation and
Related Agencies Appropriations Acts, which limits the number
of political and Presidential appointees within the Department
of Transportation. The ceiling for fiscal year 1997 is 107
personnel, which is an increase of seven personnel from the
fiscal year 1996 ceiling. The budget estimate included 117
personnel. The bill specifies that no political or Presidential
appointee may be detailed outside the Department of
Transportation.
Advisory committees.--As in previous years, the Committee
has again limited the funds used for the expenses of advisory
committees of the Department of Transportation. This year the
Committee has limited to $850,000 the expenses of advisory
committees, the same as enacted in fiscal year 1996.
Office of Civil Rights
Appropriation, fiscal year 1996 \1\..................... $6,554,000
Budget estimate, fiscal year 1997....................... 5,574,000
Recommended in the bill................................. 5,574,000
Bill compared with:
Appropriation, fiscal year 1996..................... -980,000
Budget estimate, fiscal year 1997...................................
\1\ Excludes reductions of $927,000 to comply with working capital fund,
awards, and administrative reductions, and $9,000 to comply with the
Omnibus Consolidated Rescissions and Appropriations Act of 1996.
The Committee recommends $5,574,000 for the office of civil
rights, the same level as the budget estimate and $980,000
below last year's appropriation. In fiscal year 1995, the
management of internal civil rights activities was consolidated
in the office of the secretary with transfer authority provided
in the ``salaries and expenses'' account. Reductions from the
previous year's appropriations are associated with one-time
start-up costs that are no longer needed. The appropriated
level will support 76 full-time equivalent (FTE) staff years.
The office of civil rights is responsible for advising the
Secretary on civil rights and equal opportunity matters and
ensuring full implementation of civil rights and equal
opportunity precepts in all of the department's official
actions and programs.
Transportation Planning, Research, and Development
Appropriation, fiscal year 1996 \1\..................... $8,220,000
Budget estimate, fiscal year 1997....................... 7,919,000
Recommended in the bill................................. 3,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... -5,220,000
Budget estimate, fiscal year 1997................... -4,919,000
\1\ Excludes reductions of $301,000 to comply with working capital fund,
awards, and administrative reductions, and $13,000 to comply with the
Omnibus Consolidated Rescissions and Appropriations Act of 1996.
This appropriation finances those research activities and
studies concerned with planning, analysis, and information
development needed to support the Secretary's responsibilities
in the formulation of national transportation policies. The
overall program is carried out primarily through contracts with
other federal agencies, educational institutions, nonprofit
research organizations, and private firms.
The Committee recommends $3,000,000 for this appropriation,
which represents a decrease of $5,220,000 below the funding
level provided for fiscal year 1996. The recommended level
holds transportation and planning studies to $2,757,000
(-$51,000) and permits the annualization and other pay-related
costs for 17 FTEs, as requested in the budget. The Committee
has included $100,000 to continue the department's ongoing
analysis of impacts on Mexico and the United States related to
motor carrier impacts of the North American Free Trade
Agreement. The recommendation deletes funding for planned trade
promotion activities which should be provided by the Department
of Commerce.
The recommended level reflects elimination of further
funding for the transportation automated procurement system
(TAPS) (-$2,511,000) and the docket management system (DMS)
(-$1,100,000). The TAPS pilot test program and evaluation have
yet to be completed within the office of the secretary and, as
a result, further departmental conversion and full
implementation are premature. While the Committee agrees that
further improvements may be desirable, they must be deferred
due to the high outlays associated with this account and the
tight budget constraints facing Congress. The recommended level
deletes funding for the development of GPS augmentation
(-$1,000,000), holds ``other costs'' to the 1996 level
(-$257,000), and assumes the transfer of aviation information
management to the Bureau of Transportation Statistics.
Transportation Administrative Service Center
Limitation, fiscal year 1996 \1\........................ ($103,149,000)
Budget estimate, fiscal year 1997 \2\................... (124,812,000)
Recommended in the bill \3\............................. (124,812,000)
Bill compared with:
Limitation, fiscal year 1996........................ (+21,663,000)
Budget estimate, fiscal year 1997................... (--)
\1\ Excludes reductions of $7,506,000 to comply with working capital
fund and awards provisions.
\2\ Proposed without limitation.
\3\ In fiscal year 1997, the limitation on transportation administrative
service center expenses is also addressed in a general provision
(-$10,000,000).
The Committee has agreed with the budget request to create
a transportation administrative service center (TASC) to
finance common administrative services that are centrally
performed in the interest of economy and efficiency in the
department. The fund is to be financed through negotiated
agreements with the department's operating administrations, and
other governmental elements requiring the center's
capabilities.
The Committee, however, has denied the department's request
to eliminate all appropriations language and has instead
included a limitation on activities financed through the TASC
at the level requested in the budget. In addition, the
Committee has included two language provisions. The first
provision limits activities transferred to the transportation
administrative service center to only those approved by the
agency modal administrator; the second would limit special
assessments or reimbursable agreements levied against any
program, project or activity funded in this Act to only those
assessments or reimbursable agreements presented to and
approved by the House and Senate Committees on Appropriations.
To ensure smooth operations and accountability of the TASC
in its nascent stages of development and organization, the
Committee directs the department to submit with the
department's Congressional budget submission an approved annual
operating plan of the TASC and quarterly status reports for the
Committee's review. Quarterly reports and approvals of the
Secretary's management council shall also be provided to the
Committee.
The Committee does not view the TASC as an opportunity to
increase the number of departmental administrative staff. The
Committee directs the department not to hire any new staff
above a GS-12 level for the TASC in fiscal year 1996 until
after the director of the TASC is hired. In addition, the
department is not to hire any TASC staff in fiscal year 1997 in
excess of the end-of-year, on-board level in fiscal year 1996.
General provision.--The Committee has included a general
provision (sec. 321) which provides that amounts budgeted for
the transportation administrative service center in this bill
are reduced, on a pro rata basis, to the limitation level of
$114,812,000.
Payments to Air Carriers
(liquidation of contract authorization)
(airport and airway trust fund)
Liquidation of
contract Limitation on
authorization obligations
Appropriation, fiscal year 1996. ($22,600,000) ($22,600,000)
Budget estimate, fiscal year
1997........................... (21,922,000) (21,922,000)
Recommended in the bill......... (10,000,000) (10,000,000)
Bill compared with:
Appropriation, fiscal year
1996....................... (-12,600,000) (-12,600,000)
Budget estimate, fiscal year
1997....................... (-11,922,000) (-11,922,000)
The essential air service program was created by the
Airline Deregulation Act of 1978 as a temporary measure to
continue air service to communities that had received federally
mandated air service prior to deregulation. The program
currently provides subsidies to air carriers serving small
communities that meet certain criteria. Subsidies, ranging from
$4 to $322 per passenger, currently support air service to 74
communities (excluding Alaska) and serve about 600,000
passengers annually. This program was established to provide a
smooth phaseout of federal subsidies to airlines that service
small airports.
The Committee recommends $10,000,000 for the essential air
service program. The recommendation is $12,600,000 below last
year's level and $11,922,000 below the budget estimate. The
House-passed budget resolution called for the termination of
this program.
The Committee has not imposed a legislative local matching
requirement, as was proposed by the House last year. The
Committee, however, directs the Office of the Secretary to give
preference to those communities that provide a local cost share
without unduly disadvantaging the most rural communities.
Tuscaloosa, Alabama.--The Committee is aware that the
carrier providing service to Tuscaloosa, Alabama, has proposed
to discontinue service in fiscal year 1996. Because Tuscaloosa
Municipal Airport is currently benefiting from the essential
air service program, the Committee urges the department to work
with the carrier to ensure continued operations.
The following table lists the projected subsidized air
service points in fiscal year 1997:
CURRENTLY SUBSIDIZED EAS COMMUNITIES \1\
----------------------------------------------------------------------------------------------------------------
Average
Estimated daily Current
mileage to enplanement annual Subsidy per
States/communities nearest hub at EAS subsidy passenger
(S, M. or point (YE 3/ rates (June
L) 31/95) 1, 1996)
----------------------------------------------------------------------------------------------------------------
Alabama:
Tuscaloosa.............................................. 61 32.1 (\2\) ...........
Arizona:
Kingman................................................. 103 10.5 $94,663 $14.40
Page.................................................... 274 23.3 129,560 8.87
Prescott................................................ 103 37.8 94,663 4.00
Arkansas:
El Dorado/Camden........................................ 108 11.1 474,453 68.15
Harrison................................................ 139 10.0 412,931 66.05
Hot Springs............................................. 54 14.9 412,931 44.34
Jonesboro............................................... 71 10.5 474,453 71.98
California:
Cresent City............................................ 233 15.2 151,450 15.91
Merced.................................................. 118 22.1 182,121 13.14
Visalia................................................. 202 17.0 182,121 17.16
Colorado:
Cortez.................................................. 253 27.0 92,976 5.49
Lamar................................................... 162 4.4 190,987 69.93
Hawaii:
Kamuela................................................. 39 5.6 215,361 61.30
Illinois:
Mt. Vernon.............................................. 92 6.3 (\2\) ...........
Sterling/Rock Falls..................................... 105 4.1 (\2\) ...........
Iowa:
Ottumwa................................................. 92 5.9 268,410 72.64
Kansas:
Dodge City.............................................. 156 14.9 113,693 12.19
Garden City............................................. 209 25.4 190,987 12.01
Goodland................................................ 190 3.0 190,987 102.79
Great Bend.............................................. 116 6.0 113,693 30.24
Hays.................................................... 175 16.6 113,693 10.92
Liberal/Guymon.......................................... 162 10.5 190,987 28.95
Topeka.................................................. 76 22.9 102,362 7.13
Maine:
Augusta/Waterville \3\.................................. 71 21.5 288,516 42.92
Bar Harbor.............................................. 164 16.9 259,243 24.57
Rockland................................................ 79 14.8 259,243 28.02
Michigan:
Ironwood/Ashland........................................ 218 13.4 (\2\) ...........
Minnesota:
Fairmont................................................ 153 3.9 247,771 100.39
Fergus Falls............................................ 185 13.5 146,508 17.38
Mankato................................................. 75 5.1 247,771 77.04
Missouri:
Cape Girardeau.......................................... 133 20.4 164,027 12.85
Fort Leonard Wood....................................... 130 14.5 196,606 21.69
Kirksville.............................................. 158 8.5 224,382 42.24
Montana:
Glasgow................................................. 279 6.4 303,956 76.07
Glendive................................................ 223 2.7 511,909 308.19
Havre................................................... 251 4.9 439,972 143.41
Lewistown............................................... 129 3.7 439.972 189.32
Miles City.............................................. 145 3.2 511,909 257.76
Sidney.................................................. 273 7.2 511,909 113.86
Wolf Point.............................................. 295 4.7 303,956 103.70
Nebraska:
Alliance................................................ 242 2.7 346,863 203.68
Chadron................................................. 301 2.7 346,863 207.33
Hastings................................................ 160 2.8 317,496 183.95
Kearney................................................. 186 10.1 317,496 50.04
McCook.................................................. 259 3.3 657,724 322.73
Norfolk................................................. 109 11.2 (\2\) ...........
Nevada:
Ely..................................................... 236 7.4 508,759 109.74
New Hampshire:
Keene................................................... 56 7.2 382,283 84.67
New Mexico:
Alamogordo/Holloman AFB................................. 92 12.7 166,705 20.91
Clovis.................................................. 106 15.0 200,332 21.31
Silver City/Hurley/Deming............................... 163 11.2 263,458 37.62
New York:
Massena................................................. 149 20.5 132,540 10.34
Ogdensburg.............................................. 127 10.0 132,540 21.15
Watertown............................................... 69 15.8 132,540 13.44
North Dakota:
Devils Lake............................................. 403 12.4 208,119 26.81
Dickinson............................................... 313 11.9 141,502 18.95
Jamestown............................................... 304 10.3 208,119 32.20
Oklahoma:
Enid.................................................... 91 12.0 301,400 40.28
Ponca City.............................................. 88 13.7 301,400 35.24
Pennsylvania:
Oil City/Franklin....................................... 91 27.0 89,916 5.32
South Dakota:
Brookings............................................... 211 5.6 247,771 70.61
Mitchell................................................ 245 3.6 247,771 110.32
Yankton................................................. 159 9.0 268,875 47.78
Texas:
Brownwood............................................... 153 7.1 372,426 83.58
Utah:
Cedar City.............................................. 257 19.1 292,882 24.55
Moab.................................................... 241 6.0 367,713 98.69
Vernal.................................................. 171 19.2 194,466 16.18
Vermont:
Rutland................................................. 67 10.4 382,283 58.54
Virginia:
Staunton................................................ 108 31.4 225,029 11.46
Washington:
Ephrata/Moses Lake...................................... 122 26.3 177,628 10.80
West Virginia:
Beckley................................................. 186 12.0 137,229 18.25
Princeton/Bluefield..................................... 145 15.6 137,229 14.09
Wyoming:
Worland................................................. 164 8.3 145,239 27.86
----------------------------------------------------------------------------------------------------------------
\1\ The above list of communities is based on currently available data, and is subject to change for a number of
reasons. Subsidy rates change as their two-year terms expire throughout the year. In addition, air carriers
submit passenger traffic data on a quarterly basis. Changes in both subsidy rates and traffic levels will of
course change subsidy-per-passenger calculations. Further, some communities currently receiving subsidy-free
service may require subsidy in the future while some currently subsidized communities may attain profitability
and no longer require subsidy. Finally, Hub designations are recalculated annually and published by the FAA in
the Airport Activities Statistics.
\2\ Rate under negotiation.
\3\ Enplanements based on less than a full year's passenger data annualized.
Payments to Air Carriers
(airport and airway trust fund)
(Rescission of contract authorization)
Rescission, fiscal year 1996............................ -$16,000,000
Budget estimate, fiscal year 1997....................... -16,678,000
Recommended in the bill................................. -28,600,000
Bill compared with:.....................................
Rescission, fiscal year 1996........................ -12,600,000
Budget estimate, fiscal year 1997................... -11,922,000
The bill includes a rescission of contract authority of
$28,600,000. This rescission removes contract authority which
is not available for obligation due to annual limits on
obligations. A similar rescission of $16,000,000 was made in
fiscal year 1996.
Payments to Air Carriers
(rescission)
Rescission, fiscal year 1996............................ -$6,786,971
Budget estimate, fiscal year 1997....................... -1,133,373
Recommended in the bill................................. -1,133,000
Bill compared with:
Rescission, fiscal year 1996........................ +5,653,971
Budget estimate, fiscal year 1997................... +373
The bill includes a rescission of balances of general funds
from prior years. The Airline Deregulation Act of 1978, section
419, included a subsidy program to ensure scheduled air service
to specified communities. Prior to fiscal year 1992, funding
for this subsidy was provided from the general fund. Starting
in fiscal year 1992, this program has been funded from the
airport and airway trust fund. For the past several years,
balances have been carried forward in the general fund account.
These balances are no longer required as the program is now
funded from the trust fund account.
Rental Payments
Appropriation, fiscal year 1996......................... $135,200,000
Budget estimate, fiscal year 1997 \1\................... 137,581,000
Recommended in the bill................................. 127,447,000
Bill compared with:.....................................
Appropriation, fiscal year 1996..................... -7,753,000
Budget estimate, fiscal year 1997................... -10,134,000
\1\ Rental payments for the Federal Highway Administration are
separately budgeted but reimbursed to this account.
The bill provides $127,447,000 in a consolidated
appropriation for rental payments to the General Services
Administration (GSA). These funds are used to pay GSA for
headquarters and field space rental and related services. In
addition to these consolidated funds, the bill provides that
$17,294,000 shall be provided to GSA from the Federal Highway
Administration's ``Limitation on general operating expenses''.
This brings total funding to $144,741,000. The Committee has
been concerned for some time over the spiraling growth in these
expenses, and has accordingly limited to 8,580,000 square feet
the amount of space that the department may lease from the GSA.
The Committee notes that fiscal year 1995 through 1997
space utilization rates are higher than in prior years because
the department has not been able to release space back to the
General Services Administration proportional to workforce
reductions. These reductions have involved several individual
office locations which have heretofore not allowed the
department to capture contiguous blocks of space that can be
released. However, in response to evaluations of the Nassif
building's heating, ventilation and air conditioning systems
and the health and comfort of its occupants, the department now
anticipates extensive cleaning of the Nassif building. Because
of the significant disruption that this will cause, the
department will relocate employees beginning in May 1996 and
continuing throughout the summer. This presents the department
a significant, unexpected opportunity to consolidate its space
requirements in the Nassif building, reduce its space
utilization rates in fiscal year 1997, and release unused space
to the General Services Administration.
The Committee has included a general provision (sec. 326)
that will permit the Secretary to transfer funds from salaries
and expenses to ``Rental payments'' to cover space utility
charges and other related expenses in excess of the amounts
provided in the bill.
Minority Business Resource Center Program
Limitation on
Appropriation direct loans
Appropriation, fiscal year 1996........ $1,900,000 ($15,000,000)
Budget estimate, fiscal year 1997...... 1,900,000 (15,000,000)
Recommended in the bill................ 1,900,000 (15,000,000)
Bill compared with:
Appropriation, fiscal year 1996.... ............. ................
Budget estimate, fiscal year 1997.. ............. ................
The minority business resource center of the Office of
Small and Disadvantaged Business Utilization provides
assistance in obtaining short-term working capital and bonding
for disadvantaged, minority, and women-owned businesses. The
program enables qualified businesses to obtain loans at prime
interest rates for transportation-related projects.
Prior to fiscal year 1993, loans under this program were
funded by the Office of Small and Disadvantaged Business
Utilization without a limitation. Reflecting the changes made
by the Credit Reform Act of 1990, beginning in fiscal year 1993
a separate appropriation was proposed in the President's budget
only for the subsidy inherently assumed in those loans and the
cost to administer the loan program.
The recommendation fully funds the budget request, which
provides a limitation on direct loans of $15,000,000 and
subsidy and administrative costs totaling $1,900,000, the same
levels as last year.
Minority Business Outreach
Appropriation, fiscal year 1996 \1\..................... $2,900,000
Budget estimate, fiscal year 1997....................... 2,900,000
Recommended in the bill................................. 2,900,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
\1\ Excludes reduction of $4,000 to comply with the Omnibus Consolidated
Rescissions and Appropriations Act of 1996.
This appropriation provides contractual support to assist
minority business firms, entrepreneurs, and venture groups in
securing contracts and subcontracts arising out of projects
that involve Federal spending. It also provides grants and
contract assistance that serve DOT-wide goals and not just
office of the secretary purposes. The Committee has provided
$2,900,000, the same level as provided in fiscal year 1996 and
included in the budget estimate.
COAST GUARD
Summary of Fiscal Year 1997 Program
The Coast Guard, as it is known today, was established on
January 28, 1915, through the merger of the Revenue Cutter
Service and the Lifesaving Service. This was followed by
transfers to the Coast Guard of the United States Lighthouse
Service in 1939 and the Bureau of Marine Inspection and
Navigation in 1942. The Coast Guard has as its primary
responsibilities enforcing all applicable federal laws on the
high seas and waters subject to the jurisdiction of the United
States; promoting safety of life and property at sea; aiding
navigation; protecting the marine environment; and maintaining
a state of readiness to function as a specialized service of
the Navy in time of war.
The Committee recommends a total program level of
$3,708,319,000 for activities of the Coast Guard in fiscal year
1997. This is $42,405,000 (1.1 percent) less than the budget
estimate, and $32,931,000 (1 percent) more than the fiscal year
1996 program level.
The following table summarizes the fiscal year 1996 program
levels, the fiscal year 1997 program requests, and the
Committee's recommendations:
----------------------------------------------------------------------------------------------------------------
Fiscal year--
---------------------------------- Recommended in
1996 enacted\1\ 1997 estimate the bill
----------------------------------------------------------------------------------------------------------------
Operating expenses........................................... $2,278,991,000 $2,637,850,000 $2,609,100,000
Acquisition, construction, and improvements.................. 362,375,000 411,600,000 358,000,000
Offsetting collections....................................... ............... -20,000,000 -20,000,000
Rescissions.................................................. ............... ............... -3,755,000
Environmental compliance and restoration..................... 21,000,000 25,000,000 21,000,000
Alteration of bridges........................................ 16,000,000 2,000,000 16,000,000
Retired pay.................................................. 582,022,000 608,084,000 608,084,000
Reserve training............................................. 62,000,000 65,890,000 65,890,000
Research, development, test, and evaluation.................. 18,000,000 20,300,000 19,000,000
Port safety development...................................... 15,000,000 ............... ...............
Boat safety.................................................. 20,000,000 ............... 35,000,000
--------------------------------------------------
Total.................................................. 3,375,388,000 3,750,724,000 3,708,319,000
----------------------------------------------------------------------------------------------------------------
\1\ Excludes $300,000,000 in the Department of Defense Appropriations Act, 1996, reductions to comply with
working capital fund and administrative provisions, and the Omnibus Consolidated Rescissions and
Appropriations Act of 1996.
Operating Expenses
Appropriation, fiscal year 1996 \1\..................... $2,578,991,000
Budget estimate, fiscal year 1997 \2\................... 2,637,850,000
Recommended in the bill................................. 2,609,100,000
Bill compared with:
Appropriation, fiscal year 1996..................... + 30,109,000
Budget estimate, fiscal year 1997................... - 28,750,000
\1\ Includes $300,000,000 in the Department of Defense Appropriations
Act, 1996.
\2\ Includes $118,500,000 for defense-related activities.
---------------------------------------------------------------------------
budget by mission category
The following data is based on the Coast Guard budget
submission and summarizes, by Coast Guard mission, the expected
resources to be provided for each major Coast Guard mission for
fiscal years 1995 through 1997. Because of the nature of the
service's accounting systems and unknown changes in operational
needs, these figures are estimates.
----------------------------------------------------------------------------------------------------------------
1995 actual 1996 estimate 1997 estimate
----------------------------------------------------------------------------------------------------------------
Search and rescue................................... $385,326,000 $383,716,000 $390,573,000
Aids to navigation.................................. 524,180,000 499,113,000 513,058,000
Marine safety....................................... 330,467,000 311,998,000 320,129,000
Marine environmental protection..................... 235,711,000 236,494,000 241,719,000
Enforcement of laws and treaties.................... 947,567,000 952,636,000 974,216,000
Ice operations...................................... 91,082,000 90,669,000 94,016,000
Defense readiness................................... 110,505,000 101,304,000 104,139,000
-----------------------------------------------------------
Total......................................... 2,624,838,000 2,575,930,000 2,637,850,000
----------------------------------------------------------------------------------------------------------------
Committee Recommendation
The Committee recommends a total of $2,609,100,000 for
operating activities of the Coast Guard in fiscal year 1997.
This is $28,750,000 (one percent) below the budget request, and
$30,109,000 above the fiscal year 1996 program level. The
following table compares the fiscal year 1996 enacted level,
the fiscal year 1997 estimate, and the recommended level by
program, project and activity:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
The recommended reduction from the budget estimate includes
the following adjustments:
Change
Excessive funding for maintenance....................... -$14,307,000
District offices........................................ -3,689,000
Miscellaneous supplies.................................. -3,700,000
Ammunition and small arms............................... -2,000,000
Offset for boating safety grant increase................ -304,000
Non-operational travel.................................. -1,000,000
Professional training and education..................... -2,000,000
Maintenance and Logistics Command administration........ -1,750,000
--------------------------------------------------------
____________________________________________________
Total............................................... -28,750,000
pay and allowances
The bill includes $1,597,856,000 for pay and allowances of
Coast Guard military and civilian personnel, the same amount as
included in the President's budget. The bill includes funds for
a 3.0 percent pay raise for both military and civilian
personnel, as requested. Within the amount provided, the bill
includes all funds requested for special pays for military
personnel.
depot level maintenance
The bill includes $361,937,000 for depot level maintenance,
a reduction of $14,307,000 from the budget estimate. The budget
assumed approval of a proposed reprogramming during fiscal year
1996 involving the transfer of maintenance funds to other Coast
Guard activities, and requested restoration of those funds to
the base funding for maintenance in fiscal year 1997. Since the
reprogramming has neither been approved by the department, the
Senate, nor the House at this late point in the fiscal year,
the Committee believes the Coast Guard should continue using
those funds for maintenance, as originally appropriated. With
this action, the $14,307,000 is excess to requirements in
fiscal year 1997.
Operations And Support
The bill includes $405,636,000 for operations and support,
which is $13,765,000 (3.5 percent) more than the level provided
for fiscal year 1996. This budget activity funds operations of
medium- and high-endurance cutters, area offices, district
offices, air stations, maintenance and logistics commands, and
other operational units.
Maintenance and logistics command administration.--The
Committee recommends $121,663,000, a reduction of $1,750,000
below the budget estimate. The reduction is due to budget
constraints. The Committee has attempted to allocate reductions
to administrative activities such as these in order to preserve
funding, to the maximum extent possible, for high priority
operational support activities. the recommended funding level
is 1.8 percent below the fiscal year 1996 enacted level.
District offices.--The Committee recommendation of
$54,037,000 provides an increase of 1.5 percent to handle non-
pay inflationary cost increases. The President's budget
requested $57,726,000, an increase of 8 percent. The Committee
believes this level of funding will be sufficient, especially
considering the Coast Guard is in the process of eliminating
two district offices as part of its overall streamlining plan.
Ammunition and small arms.--The Committee recommendation of
$2,667,000 is $2,000,000 below the budget estimate. The
Committee understands that, due to recent changes in the Coast
Guard's military readiness plans, a permanent decrease in the
requirement for ammunition and small arms is justified.
Coast Guard Auxiliary.--The Committee is supportive of
efforts to increase the use of the Coast Guard Auxiliary to
supplement active duty military and civilian personnel in
carrying out vital Coast Guard missions. In that regard, the
Committee is disturbed to note that the Coast Guard's fiscal
year 1997 budget reduces funding for Auxiliary support, just at
the time the Auxiliary is being asked to do more. The fiscal
year 1997 budget reduces those funds by 13 percent, from
$11,500,000 to $10,000,000. According to the Coast Guard,
Auxiliary-responded search and rescue cases declined by 16
percent between fiscal years 1993 and 1995. The Committee is
concerned that, with boating activity now bouncing back from
the recession of a few years ago and the Coast Guard
downsizing, there will be a widening gap between the boating
public's needs and the services provided. The Committee
encourages the Coast Guard to provide additional funding for
Auxiliary support, above the $10,000,000 shown in the
President's budget, if at all possible during the year.
Supervisory span of control.--Currently, the government-
wide supervisory span of control is approximately 1 manager for
every 7 employees. The goal of the national performance review
(NPR) is to double that, to reach a level of 1 manager for
every 14 employees. Currently, the Coast Guard employs 1
officer (including chief warrant officers) for each 3.9
enlisted employees. This is far lower than the level achieved
government-wide in the civilian workforce or expected under NPR
initiatives. While the Committee notes the Coast Guard's
opinion that such measures should not be applied to a military
workforce, the Committee also notes that the Coast Guard's
officer-to-enlisted ratio is lower than any other military
service (excluding the Air Force, which does not keep
comparable records). As streamlining consolidates activities
both geographically and organizationally, there is significant
opportunity to reduce layers of middle management and
supervision, thereby improving the supervisory span of control
and lowering overall costs. The Committee urges the Coast Guard
to examine this situation as the service implements its ongoing
streamlining program.
Mackinaw.--The bill includes the requested funding of
$5,872,000 for continued operation and maintenance of the
icebreaking cutter Mackinaw during fiscal year 1997. A recent
study of Great Lakes icebreaking by the Volpe National
Transportation Systems Center concluded that the Coast Guard's
annual expenditure of $8,800,000 in icebreaking on the Great
Lakes saves American industry approximately $78,000,000 each
year.
Abandoned barges, Houston, TX.--The bill includes
$2,000,000 for Coast Guard removal of abandoned barges in the
Houston ship channel and the San Jacinto River, and the Coast
Guard is directed to use such funds only for that purpose.
Multi-mission small boat stations.--Funding has been
provided to keep in operation all existing multi-mission small
boat Coast Guard stations. The Committee expects no stations to
be closed.
Defense readiness activities.--The Coast Guard's operating
budget request, and the Committee recommendation, provide total
funding of $328,000,000 for drug interdiction activities during
fiscal year 1997. In order to bolster specific anti-drug
operations, the Committee directs that, within the amount
provided, the following specific allocations be provided:
Outboard motors--riverine operations.................... $2,000,000
Boston whalers, hovercraft, and maintenance............. 12,000,000
Shoreline monitoring.................................... 10,000,000
HU-25 falcon jet operations............................. 10,000,000
--------------------------------------------------------
____________________________________________________
Total............................................. 34,000,000
The Committee recommendation is based upon recent findings
of the House Government Reform and Oversight Committee as
discussed in House Report 104-486 (March 19, 1996). The
Committee believes these are high priority initiatives. The
balance of drug interdiction funding (90 percent of the total)
is to be distributed at the discretion of the Coast Guard
Commandant.
Recruiting And Training Support
The bill includes $66,429,000 for recruiting and training
support, a reduction of $2,206,000 (3 percent) below the fiscal
year 1996 enacted level, and $2,000,000 below the budget
request. This budget activity funds recruiting and training
activities including support for the Coast Guard Academy and
Coast Guard training centers in Yorktown, Virginia; Petaluma,
California; and Cape May, New Jersey.
Coast Guard-Wide Centralized Services And Support
The bill includes $182,246,000 for Coast Guard-wide
centralized services and support, an increase of $5,114,000
(2.9 percent) above the fiscal year 1996 enacted level and no
change from the budget request. This budget activity finances
certain Coast Guard units managed at headquarters and bills for
items such as telecommunications and workers compensation,
which are paid centrally by headquarters.
Account-Wide Adjustments
The Committee recommends account-wide reductions totaling
$5,004,000, as discussed below.
Miscellaneous supplies.--The Coast Guard budgets for such
items as dining supplies, office supplies, periodicals,
commissary supplies, and shore facility housekeeping items in a
budget category called miscellaneous supplies. Given the
significant downsizing under way in the Coast Guard, the
Committee believes these costs should be going down. However,
the Coast Guard requested a 6 percent increase in this area.
The Committee recommendation holds those costs to the fiscal
year 1996 level of $61,229,000. The Committee has reviewed the
Coast Guard's lengthy list of routine in-house publications,
and believes the service could start by reviewing costs in that
area.
Boat safety administration offset.--During consideration of
the Coast Guard Authorization Act of 1995, the Coast Guard
indicated its willingness to forgo their administrative
drawdown from the Aquatic Resources Trust Fund in order to
provide additional funding for boating safety grants. In this
way, funds for boat safety could be raised without taking funds
from sport fish restoration activities. In fiscal year 1996,
the trust fund contribution to Coast Guard operating expenses
was $20,000,000. While the Committee considered transferring
the full $20,000,000 from Coast Guard ``Operating expenses'' to
boating safety grants in order to finance the higher level of
funding in the latter program, the Committee recommendation
instead retains the majority of those funds in operating
expenses, for the service to maintain and improve boating
safety across the country. The Coast Guard proposed a
significant increase in funding for boating safety grants,
while at the same time restoring the full trust fund
contribution to their general fund operating budget. Given the
50 percent increase in total funding for boating safety grants
in fiscal year 1997 (from $30,000,000 to $45,000,000), the
Committee believes this modest reduction will be more than
offset by a lower level of required activity due to the success
of state public information and education activities funded by
boating safety federal grants.
Non-operational travel.--The Committee received a
disturbing report from the DOT Inspector General this year
regarding travel by senior officials in the department. Some of
this travel was taken by Coast Guard officials, including the
apparently routine use of actual expenses to go to conferences
and meetings. The Committee has seen no evidence that Coast
Guard policy or monitoring efforts have changed as a result of
these IG findings. Given this issue, as well as the reduced
numbers of Coast Guard personnel from downsizing efforts, the
Committee believes non-operational travel should be declining.
The Committee recommends $48,935,000 for non-operational
travel, a reduction of $1,000,000 below the budget estimate and
approximately the same as the level provided for fiscal year
1996 ($49,005,000). Although travel costs are expected to
experience some inflationary growth in fiscal year 1997, the
Committee believes closer monitoring of travel expenses will
enable the Coast Guard to engage in all necessary travel during
the coming fiscal year.
Bill Language
Executive order 12839.--The bill specifies that the
Commandant shall reduce both military and civilian employment
for the purpose of complying with executive order 12839. This
provision has been included in the bill for several years
without change.
General Provision
Vessel traffic safety fairway, Santa Barbara/San
Francisco.--The bill continues as a general provision (Sec.
313) language that would prohibit funds to plan, finalize, or
implement regulations that would establish a vessel traffic
safety fairway less than five miles wide between the Santa
Barbara traffic separation scheme and the San Francisco traffic
separation scheme. On April 27, 1989, the Department published
a notice of proposed rulemaking that would narrow the
originally proposed five-mile-wide fairway to two one-mile-wide
fairways separated by a two-mile-wide area where offshore oil
rigs could be built if lease sale 119 goes forward. Under this
revised proposal, vessels would be routed in close proximity to
oil rigs because the two-mile-wide non-fairway corridor could
contain drilling rigs at the edge of the fairways. The
Committee is concerned that this rule, if implemented, could
increase the threat of offshore oil accidents off the
California coast. Accordingly, the bill continues the language
prohibiting the implementation of this regulation.
Conveyance of Light Station, Montauk Point, New York.--The
bill includes a general provision (Sec. 339) which requires the
Secretary of Transportation to convey to the Montauk Historical
Association the U.S. Government's interest in Light Station
Montauk Point, located in Montauk, New York. Relating to this
matter, the bill incorporates by reference and in their
entirety the provisions of section 423 of the Coast Guard
Authorization Act for fiscal year 1996, as passed the House of
Representatives on May 9, 1995. Although this conveyance has
been approved by the House of Representatives, final
Congressional action on the Coast Guard Authorization Act has
been delayed. To ensure the timely conveyance of this property
without further delay, the Committee believes it important to
include such a provision in this bill.
Acquisition, Construction, and Improvements
Appropriation, fiscal year 1996......................... $362,375,000
Budget estimate, fiscal year 1997 \1\................... 411,600,000
Recommended in the bill \1\............................. 358,000,000
Bill compared with:
Appropriation, fiscal year 1996 \1\................. -4,375,000
Budget estimate, fiscal year 1997 \1\............... -53,600,000
\1\ Excludes proposed asset sales.
The bill includes $358,000,000 for the capital acquisition,
construction, and improvement programs of the Coast Guard for
vessels, aircraft, other equipment, shore facilities, and
related administrative expenses, of which $20,000,000 is to be
derived from the oil spill liability trust fund. Of the total
provided, $9,600,000 represents offsets from proposed sale of
Coast Guard assets. In addition, the bill includes a proposal
to sell Coast Guard property in Wildwood, New Jersey, which is
estimated to add another $20,000,000 in offsetting collections.
Consistent with past practice, the bill also includes
language distributing the total appropriation by budget
activity and providing separate obligation availabilities
appropriate for the type of activity being performed. The
Committee continues to believe that these obligation
availabilities provide fiscal discipline and reduce long-term
unobligated balances.
Committee Recommendation
The following table compares the fiscal year 1996 enacted
level, the fiscal year 1997 estimate, and the recommended level
by program, project and activity:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
Vessels
The Committee recommends $205,600,000 for vessels, an
increase of $38,000,000 above the amount provided for fiscal
year 1996. Approximately 60 percent of this amount
($124,000,000) is to continue production of the Coast Guard's
new seagoing and coastal buoy tenders, which the Committee
considers a high priority due to the age of the current buoy
tender fleet.
Seagoing buoy tender (WLB).--The Committee recommends
$50,000,000 to purchase one additional seagoing buoy tender, a
reduction of $9,500,000 from the amount requested. Last year,
the Congress provided $65,000,000 for two vessels. While
supportive of this program, the Committee is disturbed to note
the significantly increased unit sailaway costs budgeted for
the full production oceangoing buoy tenders. Since the current
contractor is producing 2 ships for approximately $32,000,000
each in fiscal year 1996, it strains credibility to believe
that the same ship--built to the same design--will cost almost
twice as much in the coming fiscal year, especially after going
through a new competition. The Coast Guard believes that full
and open competition will result in much higher costs for the
first full production vessel. To the contrary, the Committee
believes the competition should result in savings, particularly
since five vessels are already under contract and all
contractors are being required to build to the same
specification. The bill provides $50 million for this vessel,
still a large increase over the amount provided for each vessel
in fiscal year 1996.
Coastal buoy tender (WLM).--The Committee recommends
$74,000,000 for this program, a reduction of $6,000,000 from
the level requested. The Committee notes that as of March 31,
1996, this program had an unobligated balance of $91,600,000.
Buoy boat replacement (BUSL).--The Committee recommends no
funding for the stern loading buoy boat (BUSL) in fiscal year
1997, a reduction of $8,500,000 from the budget request. The
Coast Guard planned to obligate the fiscal year 1996 funds in
fiscal year 1997, then put an additional five boats under
contract at some future time during the year. Given the
slippage in this program due to termination of the boatbuilding
contract last year, the $9,000,000 in fiscal year 1996 funds
(to build five boats) provides sufficient work to maintain this
program during fiscal year 1997. The Committee will consider
additional funds next year, after experience has been gained on
these first five production models.
82-foot coastal patrol boat (CPB).--The Committee
recommends $35,000,000 for continued replacement of the 82-foot
coastal patrol boat, a reduction of $2,800,000 from the budget
request. The modest reduction reflects the large unobligated
balance in this program. When combined with the $9,985,000 in
fiscal year 1995 funds planned for obligation in August 1996,
the Coast Guard will have $44,985,000 to sustain the
boatbuilding effort throughout the following fourteen months.
The Committee is very supportive of this program, and believes
that this level of funding is sufficient to run an economical
program.
Surface search radar.--The Committee recommends $4,000,000
for this project, a reduction of $4,600,000 due to budget
constraints. While a worthwhile project, there is no compelling
justification to significantly raise this funding above the
$3,500,000 provided for fiscal year 1996.
Aircraft
The Committee recommends $18,300,000 for aircraft, an
increase of $6,300,000 (53 percent) above the fiscal year 1996
enacted level.
Global positioning system installation.--The Committee
recommends $1,900,000, the same level of funding as provided in
fiscal year 1996. The Coast Guard requested $2,900,000.
HC-130 engine conversion.--The Committee recommends
$6,800,000, a reduction of $2,000,000 below the budget request.
No funds were provided in fiscal year 1996. This project seeks
to improve the reliability and maintainability of the C-130's
T56 engine by upgrading it from the series II version to the
series III version. The budget proposed to produce and install
22 of the required 52 kits in fiscal year 1997. While a
meritorious program, the Committee believes this can be phased
in at a slower overall pace due to budget constraints and the
need to fund higher priority activities.
HH-65 kapton rewiring.--The Committee recommendation of
$3,500,000 is $1,500,000 above the budget request. According to
the Coast Guard, kapton wiring in the HH-65 helicopter poses a
serious safety risk to Coast Guard flight crews. There have
been 13 in-flight fires in the past 4 years due to kapton
wiring, including 5 resulting in total loss of power to the
aircraft. Even though the Coast Guard stated ``this safety of
flight issue will escalate with time as the kapton wiring
continues to decompose'', the service proposed a slow, lengthy
program to address the issue. The Committee recommends a faster
replacement schedule, applying some of the savings from other
programs to accelerate a fleet-wide fix for this serious safety
problem.
VC-11A sale.--The Committee has reduced the request by
$600,000 in recognition of funds credited to this appropriation
from the recent sale of the VC-11A aircraft.
HU-25 sale.--The Committee's recommendation assumes that at
least $1,000,000 in offsetting collections are credited to this
appropriation in fiscal year 1997 from sale of Coast Guard HU-
25 (Falcon) jet aircraft. The service is pursuing the sale of
some of this inventory, but has assumed no financial resources
resulting therefrom.
Other Equipment
The Committee recommends $39,900,000 for other equipment, a
reduction of $6,800,000 below the budget estimate.
Vessel traffic service (VTS) system 2000.--The bill
includes no funding to continue this program, a reduction of
$6,000,000, and rescinds $3,755,000 in unobligated prior year
funding. In addition, the bill includes a limitation
prohibiting funds from being used to continue the VTS 2000
program. It is the Committee's firm intention that this program
be terminated by the Coast Guard, and that the service
immediately begin exploration of low-cost, off-the-shelf
alternatives to VTS 2000 in cooperation and close coordination
with affected port authorities, waterway operators, and other
system users. The Committee's recommendation is based on the
following:
GAO testimony that, after several years of study, the Coast
Guard does not know how many VTS 2000 systems will be needed,
and will not know for at least four more years;
Evidence that low-cost private and federal VTS systems are
operating today with similar performance to that envisioned for
VTS 2000;
Testimony that economic benefits of the system are not
clearly established in many of the locations under
consideration;
GAO's statement that ``we did not find widespread support
for VTS 2000 among the interviewed stakeholders at the eight
ports where we conducted site visits * * * many who opposed VTS
2000 said the proposed system would likely be more expensive
than necessary for their port''; and
Coast Guard's continued slippage of the program schedule,
and their ongoing evaluation of how to finance the system's
high operating costs in a declining budget environment, make
the program's future prospects highly questionable.
In summary, this system lacks the support of the
communities in which it would need to be installed, appears to
be gold-plated in design, and involves an unnecessarily high
cost in both acquisition and operations. The GAO recommended
that, given the high development cost and the large number of
proposed sites that show relatively low net benefits, the Coast
Guard ``determine whether the safety benefits of VTS 2000 can
be achieved more inexpensively by installing other VTS
systems''. The Committee agrees. The Committee urges the Coast
Guard to develop a follow-on program as soon as possible, in
order to prevent further delay.
Personnel management information system/joint uniformed
military pay system II.--The Committee believes this upgrade to
the Coast Guard's payroll and accounting system can be phased
over a longer period of time in order to fund higher priority
initiatives within the resources available. The Committee
recommends $800,000, half of the $1,600,000 included in the
budget request. No funds were provided in fiscal year 1996.
Shore Facilities and Aids to Navigation Facilities
The Committee recommends $47,950,000 for shore facilities,
a reduction of $11,550,000 below the budget estimate.
Coast Guard Yard ship handling facility.--The Committee
recommends $3,950,000 for this project, a reduction of
$1,000,000 below the budget request. The Committee believes
given the long-term nature of the requirement meant to be
addressed by this project, the overall work can be phased in a
more gradual manner.
Support Center Portsmouth, VA sandblasting facility.--The
Committee recommends $2,000,000, a reduction of $550,000 from
the budget estimate. The reduction is due to budget
constraints.
San Juan, PR base consolidation.--The Committee recommends
$10,000,000, a reduction of $2,000,000 below the budget
estimate. This is the first year of a multiyear, $24,400,000
project to upgrade and consolidate Coast Guard base facilities
in San Juan, Puerto Rico. Noting the long-term nature of this
project and past schedule difficulties in the family housing
project in Puerto Rico, the Committee believes the existing
schedule may be unattainable, and that a slower pace of funding
will not undermine attainment of the overall project's goals.
Upolu Point, HI offset from sale.--The Coast Guard advised
the Committee this year that the General Services
Administration is preparing to sell the former Loran station at
Upolu Point, Hawaii. There is evidence that the sale of this
property could result in significant offsetting collections
being credited to the Coast Guard's appropriation, lessening
their need for new budget authority. The Committee bill assumes
an offset of $8,000,000 from the sale of this property.
Personnel and Related Support
The bill includes $46,250,000 for AC&I personnel and
related support, an increase of $1,550,000 (3.5 percent) above
the fiscal year 1996 enacted level, and a reduction of $750,000
from the budget estimate. Given the program reductions in this
bill, the Coast Guard's requirement for acquisition personnel
will be less than budgeted. For example, the President's budget
includes 20 staff years to manage the VTS 2000 program, which
has been terminated in this bill.
Quarterly acquisition reports.--The Coast Guard is directed
to continue submission of the quarterly acquisition reports to
the House and Senate Committees on Appropriations. The Coast
Guard is to continue including with each such report an up-to-
date listing of unobligated balances by acquisition project and
by fiscal year, a Congressional direction first implemented in
fiscal year 1996.
Bill Language
Wildwood, NJ asset sale.--The bill includes language
requested by the administration allowing proceeds from the sale
of property in Wildwood, New Jersey to be credited to this
appropriation as offsetting receipts, and stipulating that such
proceeds shall be included in the budget baseline required by
the Budget Enforcement Act. This provision saves $20,000,000 in
budget authority and outlays.
Disposal of real property.--The bill includes a provision
first enacted in fiscal year 1996 crediting to this
appropriation proceeds from the sale or lease of the Coast
Guard's surplus real property. This provision was requested in
the President's budget.
Acquisition, Construction, and Improvements
(Rescissions)
Rescissions, fiscal year 1996...........................................
Budget estimate, fiscal year 1997.......................................
Recommended in the bill................................. -$3,755,000
Bill compared with:
Rescissions, fiscal year 1996....................... -3,755,000
Budget estimate, fiscal year 1997................... -3,755,000
The bill includes a rescission of $3,400,000 from the
Department of Transportation and Related Agencies
Appropriations Act, 1996 (P.L. 104-50), and a rescission of
$355,000 from the Department of Transportation and Related
Agencies Appropriations Act, 1995 (P.L. 103-331). These
represent the unobligated balances from the ``VTS 2000''
Program, which is being terminated. Discussion of this
recommendation is under ``Acquisition, construction, and
improvements''.
Environmental Compliance and Restoration
Appropriation, fiscal year 1996......................... $21,000,000
Budget estimate, fiscal year 1997....................... 25,000,000
Recommended in the bill................................. 21,000,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997................... -4,000,000
The Committee recommends $21,000,000 to bring Coast Guard
facilities into compliance with applicable federal, state and
environmental regulations; to conduct facilities response
plans; to develop pollution and hazardous waste minimization
strategies; to conduct environmental assessments; and to
conduct necessary program support. These funds permit the
continuation of a service-wide program to correct environmental
problems, such as major improvements of storage tanks
containing petroleum and regulated substances. The program
focuses mainly on Coast Guard facilities, but also includes
third party sites where Coast Guard activities have contributed
to environmental problems.
The recommended funding level is the same as the fiscal
year 1996 enacted level, and a decrease of $4,000,000 below the
requested level. The recommendation fully funds the requested
levels for site-specific cleanup and restoration projects
($15,500,000). A table comparing the recommendation to the
budget estimate follows:
------------------------------------------------------------------------
Budget Committee
Activity estimate recommended
------------------------------------------------------------------------
Cleanup and restoration projects............ $15,500,000 $15,500,000
Environmental compliance.................... 3,834,000 2,500,000
Personnel................................... 5,666,000 3,000,000
---------------------------
Total................................... 25,000,000 21,000,000
------------------------------------------------------------------------
Sites to be addressed.--The funds in this bill are
sufficient to finance the budgeted amount of $15,500,000 for
cleanup and restoration projects at specific sites. The sites
for which funds are included are as follows:
Project site Amount
Support Ctr Kodiak, AK (RCRA consent order)............. $3,200,000
Support Ctr Elizabeth City, NC (RCRA part B permit)..... 2,530,000
Air Station Cape Cod, MA (Installation restoration)..... 2,120,000
Air Station Brooklyn, NY (JP-4 fuel farm soil/
groundwater)........................................ 700,000
Agency-wide, initial assessment surveys................. 850,000
Agency-wide, aids to navigation (ATON) battery cleanup.. 4,000,000
Air Station Traverse City, MI........................... 350,000
Coast Guard Academy, CT................................. 195,000
Training Ctr Petaluma, CA............................... 185,000
Air Station Miami, FL................................... 175,000
Support Ctr Alameda, CA................................. 175,000
Air Station San Francisco, CA........................... 125,000
Group San Diego, CA..................................... 120,000
Station Depoe Bay, OR................................... 115,000
Reserve Training Ctr Yorktown, VA....................... 100,000
Station Wilmette Harbor, IL............................. 75,000
Station Neah Bay, WA.................................... 75,000
Station Humboldt Bay, CA................................ 70,000
Base Ketchikan, AK...................................... 65,000
Loran Station, Kodiak, AK............................... 50,000
Coast Guard Yard, Baltimore, MD......................... 50,000
Loran Station, Tok, AK.................................. 40,000
Loran Station, St. Paul, AK............................. 40,000
Air Station Clearwater, FL.............................. 35,000
Station Siuslaw River, OR............................... 30,000
Station Juneau, AK...................................... 30,000
--------------------------------------------------------
____________________________________________________
Total............................................... 15,500,000
Allocation of reductions.--The Committee expects the Coast
Guard to allocate the reduction, to the maximum extent
possible, against program administrative support and general
training activities. In this way, funds can be made available
for identified environmental compliance problems at specific
sites.
Alteration of Bridges
Appropriation, fiscal year 1996......................... $16,000,000
Budget estimate, fiscal year 1997....................... 2,000,000
Recommended in the bill................................. 16,000,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997................... +14,000,000
The bill includes funding for alteration of bridges deemed
a hazard to marine navigation pursuant to the Truman-Hobbs Act.
The Committee does not agree with the approach taken by the
103rd Congress and supported by the administration, that
highway bridges and combination rail/highway bridges should be
funded out of the Federal Highway Administration's
discretionary bridge account. This approach is unfair to some
states which, under existing highway formulas, have a more
difficult time competing for discretionary bridge grants and
are therefore less likely to apply. In addition, the purpose of
altering these bridges is to improve the safety of marine
navigation under the bridge, not to improve surface
transportation on the bridge itself. Since in some cases, there
are unsafe conditions on the waterway beneath a bridge which
has an adequate surface or structural condition, Federal-aid
highways funding is not appropriate to address the purpose of
the Truman-Hobbs program. The Coast Guard believes programs
such as alteration of bridges and boating safety grants are a
lower overall priority, and should not compete with the Coast
Guard's operating budget for resources.
The Committee recommends $16,000,000 for three bridges.
Each of the bridges for which funds are recommended is
authorized and has been issued an order to alter by the
Commandant of the Coast Guard. The Committee's specific
recommendation is as follows:
Committee
Bridge and location recommendation
Burlington, IA, Burlington Northern RR Bridge........... $2,000,000
Brunswick, GA, Sidney Lanier HW Bridge.................. 7,000,000
New Orleans, LA, Florida Avenue RR/HW Bridge............ 7,000,000
--------------------------------------------------------
____________________________________________________
Total............................................... 16,000,000
Retired Pay
Appropriation, fiscal year 1996......................... $582,022,000
Budget estimate, fiscal year 1997....................... 608,084,000
Recommended in the bill................................. 608,084,000
Bill compared with:
Appropriation, fiscal year 1996..................... +26,062,000
Budget estimate, fiscal year 1997...................................
The Committee has approved the budget estimate of
$608,084,000 for retired pay of military personnel of the Coast
Guard and the Coast Guard Reserve. Also included are payments
to members of the former Lighthouse Service and beneficiaries
pursuant to the retired serviceman's family protection plan and
survivor benefit plan, as well as payments for medical care of
retired personnel and their dependents under the Dependents
Medical Care Act. This compares to an appropriation of
$582,022,000 for fiscal year 1996, an increase of 4.5 percent.
Reserve Training
Appropriation, fiscal year 1996......................... $62,000,000
Budget estimate, fiscal year 1997....................... 65,890,000
Recommended in the bill................................. 65,890,000
Bill compared with:
Appropriation, fiscal year 1996..................... +3,890,000
Budget estimate, fiscal year 1997...................................
This appropriation provides for the training of qualified
individuals who are available for active duty in time of war or
national emergency or to augment regular Coast Guard forces in
the performance of peacetime missions. The program activities
fall into the following categories:
1. Initial training.--The direct costs of initial training
for three categories of non-prior service trainees.
2. Continued training.--The training of officer and
enlisted personnel.
3. Operation and maintenance of training facilities.--The
day-to-day operation and maintenance of reserve training
facilities.
4. Administration.--All administrative costs of the reserve
forces program.
The bill includes $65,890,000 for reserve training. The
amount recommended represents an increase of $3,890,000 (6
percent) above the fiscal year 1996 level and will support a
selected reserve of approximately 8,000 personnel.
Assessment for operating expenses.--The Coast Guard
testified this year that they ``assess'' the reserve training
appropriation for estimated operating and maintenance services
incurred at active duty units in support of the reserve
program. Given the small size of the reserve training
appropriation, the Committee wishes to ensure the reserves are
not assessed inappropriate charge-backs to the Coast Guard
operating budget. The Coast Guard is requested to provide a
report to the House and Senate Committees on Appropriations no
later than December 31, 1996 describing the methodology used to
calculate such assessments.
Research, Development, Test, and Evaluation
Appropriation, fiscal year 1996......................... $18,000,000
Budget estimate, fiscal year 1997....................... 20,300,000
Recommended in the bill................................. 19,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... +1,000,000
Budget estimate, fiscal year 1997................... -1,300,000
The bill includes $19,000,000 for applied scientific
research and development, test and evaluation projects
necessary to maintain and expand the technology required for
the Coast Guard's operational and regulatory missions. Of this
amount, $5,020,000 is to be derived from the oil spill
liability trust fund. The following table summarizes the fiscal
year 1997 budget estimate and the Committee recommendation for
the various research areas:
COAST GUARD RESEARCH, DEVELOPMENT, TEST AND EVALUATION
[Fiscal year 1997]
----------------------------------------------------------------------------------------------------------------
Fiscal year Fiscal year
Program area 1996 1997 House
enacted estimate recommended
----------------------------------------------------------------------------------------------------------------
Improve Search and Rescue Capability............................... $932,000 $1,872,000 $1,872,000
--------------------------------------------
Search planning................................................ 100,000 185,000 185,000
Search process, platforms and sensors.......................... 400,000 1,245,000 1,245,000
Personnel...................................................... 432,000 442,000 442,000
============================================
Waterways Safety and Management.................................... 2,189,000 1,385,000 1,385,000
--------------------------------------------
Waterways management........................................... 400,000 0 0
Advanced vessel traffic systems/services....................... 275,000 300,000 300,000
Integrated navigation systems.................................. 450,000 150,000 150,000
Short range aids to navigation................................. 200,000 50,000 50,000
Personnel...................................................... 864,000 885,000 885,000
============================================
Marine Safety...................................................... 2,700,000 3,825,000 3,825,000
--------------------------------------------
Marine safety research......................................... 200,000 385,000 385,000
Human factors analysis......................................... 1,050,000 1,200,000 1,200,000
Fire safety for commercial vessels............................. 750,000 1,245,000 1,245,000
Personnel...................................................... 700,000 995,000 995,000
============================================
Ship Structure Committee........................................... 0 437,000 223,000
--------------------------------------------
Support for Committee.......................................... 0 400,000 186,000
Personnel...................................................... 0 37,000 37,000
============================================
Marine Environmental Protection.................................... 1,354,000 1,791,000 2,291,000
--------------------------------------------
Planning, management and training.............................. 150,000 0 0
Oil pollution response......................................... 625,000 1,075,000 1,075,000
Personnel health and safety.................................... 75,000 0 0
Port demonstration project..................................... 0 0 0
OPA90 regional grant program................................... 0 0 0
Aquatic nuisance species control............................... 0 200,000 700,000
Personnel...................................................... 504,000 516,000 516,000
============================================
Maritime Law Enforcement........................................... 1,229,000 791,000 791,000
--------------------------------------------
Surveillance................................................... 725,000 0 0
Vessel search.................................................. 0 200,000 200,000
Off the shelf technology....................................... 0 75,000 75,000
Personnel...................................................... 504,000 516,000 516,000
============================================
Servicewide Safety and Environmental Compliance.................... 2,318,000 2,652,000 2,452,000
--------------------------------------------
Cutter fire safety technology.................................. 586,000 0 0
Pollution prevention........................................... 500,000 700,000 500,000
Aviation engineering support................................... 0 0 0
Vessel loss exposure and risk analysis methodology............. 620,000 1,325,000 1,325,000
Personnel...................................................... 612,000 627,000 627,000
============================================
Human Resource Management Effectiveness............................ 100,000 147,000 147,000
--------------------------------------------
Training techniques and technologies........................... 100,000 0 0
Staffing standards development................................. 0 0 0
Personnel...................................................... 0 147,000 147,000
============================================
Command, Control, Computers and Intelligence....................... 928,000 1,014,000 928,000
--------------------------------------------
Information systems............................................ 280,000 0 0
Advanced communications systems................................ 0 350,000 264,000
Personnel...................................................... 648,000 664,000 664,000
============================================
Technology Base.................................................... 500,000 1,600,000 550,000
--------------------------------------------
Future technology assessment................................... 0 400,000 0
Coast Guard standard cost model................................ 0 100,000 100,000
Select projects................................................ 300,000 800,000 200,000
Personnel...................................................... 200,000 300,000 250,000
============================================
R&D Personnel, Program Support, and Operations..................... 5,750,000 4,786,000 4,536,000
--------------------------------------------
Admin/support personnel and related costs...................... 2,850,000 2,571,000 2,321,000
Support and operations......................................... 1,600,000 1,685,000 1,685,000
R&D management info system development......................... 450,000 250,000 250,000
Modernization of F&SFD test facilities......................... 850,000 280,000 280,000
============================================
Total appropriation........................................ 18,000,000 20,300,000 19,000,000
----------------------------------------------------------------------------------------------------------------
Ship Structure Committee.--The Committee continues to
believe that much of the Coast Guard's support for the ship
structure committee is not needed, given financial constraints.
Some of the planned activities include development of robotics
technology and weldable primers for shipyard construction;
development of alternative stiffening systems for double skin
tankers; and development of risk assessment methods associated
with the use of polymer matrix composites. The Committee
believes these activities can be sufficiently carried out by
the shipbuilding and boatbuilding industries. The
recommendation for this program is $223,000, a reduction of
$214,000 from the budget request. Last year the Committee
recommended no funding for this program.
Servicewide safety and environmental compliance.--The
recommended level holds funds for the pollution prevention
activity to the fiscal year 1996 level. Overall funding
recommended is 5.8 percent above fiscal year 1996.
Advanced communications systems.--The reduction of $86,000
is due to budget constraints.
Technology base.--The recommendation provides $550,000, an
increase of $50,000 (10 percent) over the amount provided for
fiscal year 1996, but a reduction of $1,050,000 from the budget
request. The Committee continues to believe such activities are
of a low priority.
Ballast water management program.--Of the funds provided
under ``aquatic nuisance species control'', $700,000 is only
for the ballast water management program.
Research and development personnel.--The reduction of
$250,000 is due to budget constraints. This reduction in
management support is consistent with the reductions in program
activities in the bill.
Boat Safety
(Aquatic Resources Trust Fund)
Appropriation, fiscal year 1996......................... $20,000,000
Budget estimate, fiscal year 1997.......................................
Recommended in the bill................................. 35,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... +15,000,000
Budget estimate, fiscal year 1997................... +35,000,000
The Internal Revenue Code of 1954, as amended, and the
Federal Boat Safety Act of 1971, as amended, provide for the
transfer of highway trust fund revenue derived from the motor
boat fuel tax, excise taxes on sport fishing equipment, and
import duties on fishing tackle and yachts to the aquatic
resources trust fund. The Secretary of the Treasury estimates
the amounts to be so transferred and appropriations are
authorized from the fund for recreational boating safety
assistance and other programs as authorized by the Federal Boat
Safety Act of 1971, as amended, and Public Law 98-369 (the
Deficit Reduction Act of 1984). These funds are used primarily
to provide grants to states to help enforce boating safety laws
and to expand boating education programs.
The bill includes an appropriation of $35,000,000 for the
boat safety program. When combined with an additional
$10,000,000 in permanent indefinite appropriations from the
Clean Vessel Act of 1992 (Public Law 102-587), total program
funding of $45,000,000 is provided for fiscal year 1997. This
is an increase of 50 percent over the total funding of
$30,000,000 provided for fiscal year 1996. This program
provides between 15 and 20 percent of total boating safety
expenditures when state and federal resources are combined.
Once again this year, the Committee cannot support the
Coast Guard's proposal to convert this program to mandatory
spending. According to an April 1993 study by the National
Transportation Safety Board, recreational boating accidents
result in the highest number of transportation fatalities
annually after highway accidents. Over 900 people are killed
each year in boating accidents, and over 350,000 are injured,
more than 40 percent of which require treatment beyond first
aid. The number of boats, especially high speed boats, is
increasing each year. The Safety Board still includes boating
safety on their list of ``most wanted'' safety improvements.
Federal support and direction will be needed to ensure
implementation of initiatives raised in the Safety Board's
study as well as to continue other boating safety activities.
Loss of authorized funding.--In this year's hearing, the
Coast Guard stated a major concern that unless the boating
safety program is funded at the authorized level, those
resources are lost forever, because a provision in the
authorization statute requires they be reallocated to the sport
fish restoration program and spent in the same fiscal year. The
Committee acknowledges that this feature of the boating safety
grants program is unlike the financing of other trust fund
safety programs. In those cases, as with general fund
authorizations, funds not appropriated remain authorized for
appropriation in a future fiscal year. The Committee notes that
the boating safety program is up for reauthorization in fiscal
year 1998, and encourages the department and the Coast Guard to
recommend elimination of this provision in the statute. Such a
change would prevent the diversion of funds intended for
boating safety programs to sport fishing activities.
Discretionary grant program.--The bill includes language
providing that $5,000,000 of the total amount is available only
for issuance of discretionary grants to states and other
appropriate entities for the targeted improvement of boating
safety across the country. At the present time, all boating
safety grant funds are distributed by formula. Perhaps because
of this, the Coast Guard is not active in using grant funds to
provide incentives for poorer-performing states to make
improvements in their boating programs. This is in contrast to
the National Highway Traffic Safety Administration, the Federal
Transit Administration, and the Federal Aviation
Administration, all of which use their discretionary grants
programs to facilitate improvements in safety. The Committee
believes it is time for the Coast Guard to take a more active
role in promoting and shaping improvements in boating safety in
the various states. The boating public looks to the Coast Guard
for leadership in boating safety, and this is one way the Coast
Guard can demonstrate that leadership. With the recommended
increase of 50 percent in total funding, the time is right to
begin a discretionary grant element of the overall program in
fiscal year 1997, since formula funds will increase without
regard to creation of the discretionary grants program. The
Committee directs the Coast Guard to initiate a rulemaking to
determine, through public input, appropriate criteria for the
discretionary grants program, in consultation with the states
and other interested parties. In addition, the Coast Guard is
to submit a report to the House and Senate Committees on
Appropriations, not later than March 15, 1997, outlining the
objectives of the discretionary grant program and the criteria
upon which decisions will be made.
FEDERAL AVIATION ADMINISTRATION
Summary of Fiscal Year 1997 Program
The Federal Aviation Administration (FAA) is responsible
for the safety and development of civil aviation and the
evolution of a national system of airports. Most of the
activities of the FAA will be funded with direct appropriations
in fiscal year 1997. The grants-in-aid for airports program,
however, will be financed under contract authority with the
program level established by a limitation on obligations
contained in the accompanying bill. The bill assumes
reinstatement of the aviation ticket tax and other related
aviation taxes in time to prevent shutdown or significant
curtailment of FAA's trust fund-financed activities.
The total recommended program level for the FAA for fiscal
year 1997 amounts to $8,155,000,000, including a $1,300,000,000
limitation on the use of contract authority. This is
$52,331,000 (1 percent) above the President's request level and
$61,343,000 below the fiscal year 1996 enacted level. The
following table summarizes the fiscal year 1996 program levels,
the fiscal year 1997 program requests, and the Committee's
recommendations:
----------------------------------------------------------------------------------------------------------------
Recommended in
1996 enacted\1\ 1997 estimate the bill
----------------------------------------------------------------------------------------------------------------
Operations............................................. $4,645,712,000 $4,918,269,000 $4,900,000,000
User fees.............................................. ................. -150,000,000 -30,000,000
Facilities and equipment............................... 1,934,883,000 1,788,700,000 1,800,000,000
Research, engineering, and development................. 185,698,000 195,700,000 185,000,000
Grants-in-aid for airports \2\......................... 1,450,000,000 1,350,000,000 1,300,000,000
Aircraft purchase loan guarantee program............... 50,000 ................. .................
--------------------------------------------------------
Total............................................ 8,216,343,000 8,102,669,000 8,155,000,000
----------------------------------------------------------------------------------------------------------------
\1\ Excludes reductions to comply with working capital fund and awards provisions, and Omnibus Consolidated
Rescissions and Appropriations Act of 1996 and 1996 rescission in facilities and equipment.
\2\ Limitation on obligations.
Aviation Trust Fund Spending
This year the Committee has had to make a judgment about
whether the aviation taxes used to finance the majority of
FAA's programs will be available to provide financial resources
during fiscal year 1997. These taxes expired on December 31,
1995. During fiscal year 1996, the FAA has been utilizing the
airport and airway trust fund's unobligated balance. Although
this balance is sufficient to finance FAA activities throughout
fiscal year 1996, it is estimated that the trust fund will be
depleted in January 1997. Trust fund resources finance
approximately 75 percent of the FAA's budget, including the
entire capital improvement program, airport development grants,
and half of the agency's operating budget. Although some have
suggested that user fees could be collected in place of the
aviation taxes, the FAA has only requested authority to collect
$150,000,000 in new user fees next year--a fraction of total
required trust fund spending. It is clear that without
restoration of the aviation taxes, the FAA would not be able to
carry out its responsibilities during the coming year.
If the FAA's budget were financed entirely from the general
fund, the agency could proceed to operate its programs without
disruption, and without the fear of a systemwide shutdown
should the aviation taxes not be reinstated. However, since the
Committee is not allocated general fund budget authority for
the airport development (AIP) program, such a recommendation
would by necessity include no funds for that important program.
Secondly, such levels of funding from the general fund are not
authorized, and run counter to the objectives of the Congress
in establishing the airport and airway trust fund. The
Committee realizes this is the only course which, at the
present time, could guarantee a full budget for the FAA next
year. However, given the issues presented by this approach, the
Committee has decided to assume timely resumption of the
aviation taxes, prior to January 1997.
National Civil Aviation Review Commission
The bill includes $2,400,000 for activities of a National
Civil Aviation Review Commission. On October 30, 1986, Public
Law 99-591 established a Presidentially-appointed Aviation
Safety Commission. This panel released a final report in April
1988, and made several recommendations to improve aviation
safety in this country. It has now been a decade since issuance
of this report, and serious concerns have once again arisen
over the adequacy of aviation safety in this country. Although
FAA statistics show that, in the aggregate, the U.S. has the
safest aviation system in the world, a number of accidents,
incidents, Inspector General reports, and media investigations
over the past three years raise questions about certain aspects
of FAA's regulatory oversight in the area of safety. For
example, the DOT Inspector General has been warning about the
use of fraudulent or undocumented aircraft parts for many
years, but the FAA has been slow to act. FAA inspectors have
inadequate training and do not utilize management systems which
would enable them to focus resources on the highest safety
needs or ensure effective follow-up action on past
deficiencies. These problems have been made worse over the past
few years due to increased air travel and the emergence of a
large number of ``start-up'' air carriers, often operating with
slim financial margins and aggressive pricing.
Secondly, over the past eighteen months the Department has
put forth the view that the FAA's long-term budget requirements
are too great to be satisfied through the annual appropriations
process. The agency forecasts the need for significant annual
increases in its operating budget due to incorporation of newer
and more costly technologies, additional staffing resulting
from increased air travel, and higher maintenance requirements
for air traffic control equipment as the system expands and
equipment ages. Although the administration supports moving the
FAA out of the appropriations process through collection of
user fees, this proposal has a number of serious problems. To
date, however, there has been no complete and independent audit
of the agency's most likely budget requirements, and the FAA
itself has decided not to update the 1995 financial projections
on which the current policy decisions are being made.
Lastly, the FAA continues to experience schedule slippage
and cost overruns on its major development programs, even as
the agency is working to implement the major new changes in
acquisition polices and procedures provided in the Department
of Transportation and Related Agencies Appropriations Act,
1996. This is especially troublesome given the FAA's declining
budget requests for facilities and equipment over the past two
years. Cost growth in the past occurred in an expanding budget
environment, thereby lessening its impact. In the future, cost
overruns will have a more harmful effect, because the budgetary
competition is more severe.
Therefore, the Committee believes it is time for a
comprehensive, independent review of FAA safety oversight,
financial prospects and options, and acquisition policy. The
bill includes a general provision (Sec. 338) which appropriates
$2,400,000 for activities of the Commission, to include an
independent and objective contract audit of FAA's long-range
financial requirements. The Committee will work with the
authorizing committee over the coming weeks to establish a
legislative authorization for this critical effort. The
Committee believes that this review will set the stage for new
aviation policy directions in the next century, with the
objective of providing a more effective and stable FAA and a
greater degree of confidence among the flying public in the
safety of our aviation system.
Additional Funds For Safety And Capacity Enhancement Programs
The bill includes a total of $139,584,000, above the budget
estimate, for new operational activities, air traffic control
equipment and systems, site preparation and installation, and
research to improve aviation safety and airway capacity around
the country.
Once again this year, in setting priorities for this bill
the Committee has placed the strongest emphasis on maintaining,
and improving wherever possible, transportation safety around
the nation. Because of significant concerns over the past year
regarding the state of aviation safety, the Committee feels
strongly that additional funding emphasis should be placed on
new safety-related capabilities and equipment. Among other
things, this equipment will provide controllers, pilots, and
airline dispatchers a more accurate and up-to-date
understanding of dangerous weather conditions and provide a
clearer picture of potential conflicts between aircraft
maneuvering on airport surfaces. The bill includes additional
funds to maintain the schedule for satellite navigation systems
development, which promises improvement in both aviation safety
and systemwide capacity.
The programs for which the Committee recommends additional
funding, and the associated increases above requested levels,
are as follows:
Program Name Amount
FAA Operations:
Aviation safety reporting system.................... $1,000,000
Facilities and Equipment:
Wide area augmentation system for GPS (WAAS)........ 34,000,000
National satellite test bed for GPS................. 11,500,000
Surface movement advisor build II................... 2,000,000
Spectrum auction impact............................. 45,000,000
Ground to air replacement radios.................... 20,000,000
Loran-C upgrades.................................... 5,650,000
NAS equipment installation.......................... 5,100,000
Automated weather observing system (AWOS)........... 1,000,000
Research, Engineering, and Development:
Local area augmentation system for GPS (LAAS)....... 5,427,000
Aviation weather research........................... 6,589,000
Human factors safety research....................... 2,318,000
--------------------------------------------------------
____________________________________________________
Total........................................... $139,584,000
The Committee directs the FAA to pursue these improvements
aggressively as a high priority. While the administration has
proposed substantial user fees to help resolve problems in the
FAA's budget, the Committee believes that even within existing
resources, the highest priority should be placed on replacement
of aging and antiquated safety equipment. According to
departmental and agency officials, the air traffic control
system is becoming increasingly debilitated by old, antiquated
equipment. While much of the old equipment is scheduled for
replacement over the next two or three years with systems
already under contract, the Committee's recommended funding
level would accelerate efforts to revitalize the technological
state of the ATC system in this country by providing additional
funds to get systems procured and installed in the field more
quickly than under current schedules. Included in the bill are
funds to begin immediately installing air traffic safety
equipment which is currently warehoused due to lack of funds.
Operations
(Including Airport and Airway Trust Fund)
Appropriation, fiscal year 1996......................... $4,645,712,000
Budget estimate, fiscal year 1997....................... 4,918,26 |
