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[From Thomas, a service of the U.S. Congress through its Library.
Check for accuracy before citing or quoting.]
42 196
105 th Congress
Report
HOUSE OF REPRESENTATIVES
1st Session
105 188
DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES
APPROPRIATIONS BILL,
1998
July 16, 1997.--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
REPORT
together with
ADDITIONAL VIEWS
[To accompany H.R. 2169]
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, 1998.
INDEX TO BILL AND REPORT
Page number
Bill
Report
Narrative summary of Committee action
2
Program, project, and activity
3
Title I--Department of Transportation:
Office of the Secretary
2
5
Coast Guard
5
12
Federal Aviation Administration
10
28
Federal Highway Administration
15
69
National Highway Traffic Safety Administration
17
97
Federal Railroad Administration
19
105
Federal Transit Administration
24
116
Saint Lawrence Seaway Development Corporation
33
143
Research and Special Programs Administration
34
144
Office of Inspector General
36
148
Surface Transportation Board
36
149
Title II--Related Agencies:
Architectural and Transportation Barriers Compliance Board
37
151
National Transportation Safety Board
37
152
Title III--General Provisions
38
154
Title IV--Amtrak Route Closure And Realignment
52
155
House Report Requirements:
Appropriations not authorized by law
161
Changes in existing law
156
Comparison with budget resolution
161
Constitutional authority
155
Financial assistance to state and local governments
162
Five-year projections of outlays
162
Rescissions
156
Transfers of funds
156
Tabular summary of the bill
164
SUMMARY OF THE BILL
The accompanying bill would provide $13,125,671,000 in new budget
(obligational) authority for the programs of the Department of
Transportation and related agencies, an increase of $9,944,000 above the
$13,115,727,000 requested in the budget.
The Committee has also recommended limitations on obligations for a
number of programs that are largely financed by multi-year contract
authority in legislative acts. The total of the limitations on
obligations for these programs is $27,681,825,000. This is
$3,695,604,466 above the levels enacted in fiscal year 1997, and
$2,077,825,000 more than
the levels requested in the budget. An additional
$1,660,226,000 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, exempt obligations) amounts to
$42,467,772,000. This is $5,379,656,000 more than comparable fiscal year
1997 enacted levels, and $2,237,424,000 more than the budget request.
MAJOR RECOMMENDATIONS
Selected major recommendations in the accompanying bill are:
(1) The federal-aid highways limitation amounts to $21,500,000,000,
an increase of $3,500,000,000 (almost 20 percent) over the 1997 enacted
level. This is in excess of the levels assumed in the bipartisan budget
agreement.
(2) Transit program spending of $4,837,738,000, an increase of
$455,556,000 over the 1997 enacted level. The transit formula program is
increased from $2,149,185,000 to $2,500,000,000 (16 percent); transit
discretionary grants increase 5 percent, from $1,900,000,000 in fiscal
year 1997 to $2,000,000,000 in fiscal year 1998.
(3) An appropriation of $9,060,000,000 for the Federal Aviation
Administration, an increase of $768,588,000 (9 percent) over the 1997
enacted level and $648,900,000 over the administration's request.
(4) The airport improvement program totals $1,700,000,000, an
increase of $700,000,000 over the administration's request.
(5) A total of $793,000,000 for the National Railroad Passenger
Corporation (Amtrak) to cover operating losses, retirement payments,
capital expenses and improvements to the northeast corridor. This is an
increase of $30,050,000 over the 1997 enacted level when adjusted for
non-recurring costs.
(6) A total of $3,881,696,000 is provided for the Coast Guard, an
increase of $105,000,000 over 1997. The Subcommittee recommendation
fully funds the Coast Guard's drug interdiction program ($354,100,000),
of which $34,300,000 is withheld until the Office of National Drug
Control Policy certifies that these expenditures represent the best
investment relative to other possible drug interdiction alternatives.
(7) A total of $333,407,000 for the National Highway Traffic Safety
Administration, an increase of 10 percent over the 1997 enacted level.
(8) Funding of $1,000,000 for an Amtrak route closure and
realignment commission.
TABULAR SUMMARY
A table summarizing the amounts provided for fiscal year 1997 and
the amounts recommended in the bill for fiscal year 1998 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 1998. These hearings are
contained in 7 published volumes totaling approximately 9,000 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 1998 have been developed
after careful consideration of all the information available to the
Committee.
PROGRAM, PROJECT, AND ACTIVITY
During fiscal year 1998, 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 committees of conference.
GOVERNMENT PERFORMANCE AND RESULTS ACT
The Committee considers the full and effective implementation of the
Government Performance and Results Act (P. L. 103 62), to be a priority
for all agencies of government.
Starting with fiscal year 1999, the Results Act requires each agency
to ``prepare an annual performance plan covering each program activity
set forth in the budget of such agency''. Specifically, for each program
activity the agency is required to ``establish performance goals to
define the level of performance to be achieved by a program activity''
and ``performance indicators to be used in assessing the relevant
outputs, service levels, and outcomes of each program activity''.
The Committee takes this requirement of the Results Act very
seriously and plans to carefully examine agency performance goals and
measures during the appropriations process. As a result, starting with
the fiscal year 1999 appropriations cycle, the Committee will consider
agencies' progress in articulating clear, definitive, and
results-oriented (outcome) goals and measures as requests for
appropriations are reviewed.
The Committee suggests agencies examine their program activities in
light of their strategic goals to determine whether any changes or
realignments would facilitate a more accurate and informed presentation
of budgetary information. Agencies are encouraged to consult with the
Committee as they consider such revisions prior to finalizing any
requests pursuant to 31 U.S.C. 1104. The Committee will consider any
requests with a view toward ensuring that fiscal year 1999 and
subsequent budget submissions display amounts requested against program
activity structures for which annual performance goals and measures have
been established.
SAFETY PROGRAMS
In this bill, the Committee has worked hard to protect funding for
essential safety-related programs of the Department of Transportation
and independent agencies. The tragic aviation accidents over the last
couple of years and an increasing number of highway fatalities have
brought home to many people the importance of maintaining and improving
safety. In response, the Committee has fully funded many safety
initiatives, such as the National Highway Traffic Safety
Administration's alcohol, speed, and air bag initiatives. The bill
includes eighteen initiatives to enhance safety and capacity of the
aviation system, and restores funds cut by the Federal Aviation
Administration for safety equipment and safety-related research.
Additional funds above the President's request are provided for
installing airport surface detection equipment; automatic alerting
systems to prevent runway collisions; approach lighting systems;
improved weather detection and forecasting systems; aging aircraft and
aircraft safety technologies; and human factors research. However, if,
in the judgment of department 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 1997\1\ $52,966,000
Budget estimate, fiscal year 1998 56,136,000
Recommended in the bill 60,009,000
xlBill compared with:
Appropriation, fiscal year 1997 +7,043,000
Budget estimate, fiscal year 1998 +3,873,000
\1\Excludes reduction of $1,458,200 to comply with TASC.
The bill provides $60,009,000 for salaries and expenses of the
various offices comprising the Office of the Secretary (OST). This level
is $7,043,000 above the fiscal year 1997 level and $3,873,000 above the
budget estimate.
Rental payments. --The Committee recommendation includes funding for
OST's rental payments in this account and eliminates the consolidated
rental payments account, consistent with the budget request. The bill
provides $5,898,000 in this account only to fund OST-utilized space and
related services. The bill deletes funding requested for department-wide
facility security enhancements (-$4,669,000). The GSA indicated in
testimony before the Committee that there are no plans for a new
security enhancement package in fiscal year 1998 and that current
annualization of security enhancements which were funded in fiscal year
1997 have not been reflected in the rental rates charged to the
agencies. Moreover, the GSA stated, ``At the present time we do not
reflect the cost of additional security requirements in the rental rates
we charge, but we are proposing to do so beginning in fiscal year 1999
through the implementation of a security surcharge. Rent rates would not
be affected until that time.'' As such, the Committee believes that the
additional $4,669,000 requested by the department for security
requirements is premature at this time. The Committee notes that this
action will not diminish security at any of the department's facilities.
The Committee recommendation assumes the following reductions from
the budget estimate:
xlReductions in staff:
-10 Procurement analysts, office of acquisition -$700,000
-5 Attorney advisors -400,000
-2 Congressional liaison officers -150,000
-2 Intergovernmental liaison officers -150,000
-3 Office of public affairs -175,000
-3 Office of administration -125,000
-1 Office of intermodalism -100,000
Office of the chief information officer -225,000
Office of acquisition .--The Committee recommendation reduces by ten
the number of procurement analysts in 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 reviews. Over the past years, the FAA,
which is responsible for the majority of the department's major
acquisitions, has been provided new acquisition authorities, including
greater flexibility and latitude in its procurement program, and as a
result, the administrative offices of the secretary have little, if any,
oversight role.
The bill includes a provision that limits to $606,000 funds available
to the office of acquisition and grants management, solely for
department-wide grants management activities.
Other reductions in staff .--The Committee recommendation eliminates
a number of other positions in the office of the secretary, including 5
attorney advisors in the office of general counsel (-$400,000); 2
congressional liaison officers and 2 intergovernmental liaison officers
in the office of governmental affairs (-$300,000); 3 positions in the
office of public affairs (-$175,000); 3 positions in the office of
administration (-$125,000); and 1 position in the office of
intermodalism (-$100,000). 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. Many of these positions are either new
hires planned in fiscal year 1998 or are currently vacant.
Office of the chief information officer .--The Committee
recommendation reduces funds requested for the office of the chief
information officer by $225,000 due to outlay constraints. The budget
request included a total of $625,000 for the office. This reduction will
require nominal reductions in travel and training, as well as reductions
in cross-cutting initiatives and contractor support to formulate a
department-wide information technology strategy.
Periodic fitness reviews of airlines. --Within the funds provided,
the Committee recommendation includes 3 staff years in the office of the
secretary to implement a recommendation of the White House Commission
that greater attention be paid to periodic fitness reviews of airlines.
The budget requested that these staff years be funded from the FAA's
budget.
Reprogramming .--In fiscal year 1997, the department may use
unobligated balances from fiscal year 1996 funds appropriated for the
aviation management system for any transportation planning research and
development purpose.
Non-sedating antihistamines. --The Committee applauds the
department's attention to raising public awareness of fatigue, sleep
disorders, and inattention related to motor vehicle crashes and the
FAA's vigilance in reviewing medications suitable for pilots and
safety-related personnel, such as approval of non-sedating
antihistamines for allergy relief. The Committee believes that other
agencies within the department, including FRA, FTA, NHTSA, and the
FHWA's office of motor carriers, should follow the lead of the FAA and
encourages the Secretary to review the need to develop safety standards
relating to the use of antihistamines in other public/commercial modes
of transportation.
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
1998 is 107 personnel, which is the same as the ceiling enacted in
fiscal year 1997. The bill specifies that no political or Presidential
appointee may be detailed outside the Department of Transportation.
Advisory committees. --The Committee has deleted language that was
included in past Department of Transportation and Related Agencies
Appropriations Acts which limited the funds used for the expenses of
advisory committees of the Department of Transportation. The budget
requested that the limitation on advisory committees be deleted and the
Committee sees no useful oversight purpose in maintaining it further.
OFFICE OF CIVIL RIGHTS
Appropriation, fiscal year 1997\1\ $ 5,574,000
Budget estimate, fiscal year 1998 5,574,000
Recommended in the bill 5,574,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998
\1\Excludes reduction of $25,735 to comply with TASC.
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. This office is
responsible for enforcing laws and regulations which prohibit
discrimination in federally operated and federally assisted
transportation programs. This office also handles all civil rights cases
related to Department of Transportation employees.
The Committee recommends an appropriation for the Office of Civil
Rights totaling $5,574,000, the same level as both the budget request
and the fiscal year 1997 enacted level. 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. This level will support 70 full-time equivalent
staffyears.
TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT
Appropriation, fiscal year 1997\1\ $ 3,000,000
Budget estimate, fiscal year 1998 6,008,000
Recommended in the bill 4,400,000
xlBill compared with:
Appropriation, fiscal year 1997 +1,400,000
Budget estimate, fiscal year 1998 -1,608,000
\1\Excludes reduction of $69,869 to comply with TASC.
This appropriation finances those research activities and studies
concerned with planning, analysis, and information systems 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 $4,400,000 for transportation, planning,
research, and development, which represents an increase of $1,400,000
over fiscal year 1997 levels and a decrease of $1,608,000 from the
budget estimate. Within the total provided, the recommended level holds
transportation planning and studies to $3,538,000, an increase of
$820,000 over fiscal year 1997, and $730,000 below the budget estimate.
This level will permit annualization and other pay-related costs for 15
full-time equivalent staffyears and will fully fund all ongoing
activities, as well as provide nominal increases for proposed studies
and evaluations, albeit below the budget estimate.
National capital region congestion mitigation study.-- Within the
funds provided for transportation planning and studies, the Committee
has included $300,000 to conduct a comprehensive study and hold a summit
to analyze how to meet and mitigate the current and future
transportation needs and congestion of the national capital region.
The recommended level also provides $862,000 for the department's
transportation systems planning activities, which represents an increase
of $619,000 above the fiscal year 1997 level of $243,000 and a decrease
of $878,000 below the budget estimate. This level fully funds the fiscal
year 1998
requirements for docket management system modernization but
defers funding for the automated rulemaking system due to budget
constraints.
TRANSPORTATION ADMINISTRATIVE SERVICE CENTER
Limitation, fiscal year 1997\1\ ($124,812,000)
Budget estimate, fiscal year 1998\2\ (121,800,000)
Recommended in the bill\3\ (121,800,000)
xlBill compared with:
Limitation, fiscal year 1997 (-3,012,000)
Budget estimate, fiscal year 1998 (--)
\1\Excludes reduction of $10,000,000 to comply with TASC.
\2\Proposed without limitation.
\3\In fiscal year 1998, the limitation on transportation administrative service center expenses is
also addressed in a general provision (-$25,000,000).
The transportation administrative service center (TASC) was created
in fiscal year 1997 to provide common administrative services to the
various modes and outside entities that desire those services for
economy and efficiency. The fund is financed through negotiated
agreements with the department's operating administrations and other
governmental elements requiring the center's capabilities.
The Committee agreed to create the transportation administrative
service center in fiscal year 1997 at the department's request. In
agreeing to that request, the Committee limited (1) the activities that
can be transferred to the transportation administrative service center
to only those approved by the agency administrator and (2) special
assessments or reimbursable agreements levied against any program,
project or activity funded in this Act to only those assessments or
reimbursable agreements for which justification is presented to and
approved by the House and Senate Committees on Appropriations. These
limitations are continued in fiscal year 1998.
In addition, to ensure smooth operations and accountability of the
TASC in its nascent stages of development and organization, the
Committee directed the department to submit with the department's
congressional budget submission the annual operating plan of the TASC
and its quarterly reports for the Committee's review. Quarterly reports
of the Secretary's management council were to be provided to the
Committee. Now, nearly six months after the department transmitted its
congressional budget justifications, the TASC's fiscal year 1998
operating plan displayed by lines of business, quarterly reports and
secretarial management council reports and approvals have yet to be
provided to the Committee. These documents provide critical information
in support of the department's budget recommendation for the
transportation administrative service center. Without the timely
transmittal of these materials, the Committee is unable to fully
consider the department's 1998 request or judge the department's
progress in establishing and operating this new organization.
Accordingly, the Committee directs the department not to hire any new
staff for the TASC in fiscal years 1997 or 1998 and reiterates its
direction that the 1999 TASC operating plan be submitted with the
department's fiscal year 1999 congressional justifications, and that all
other supporting documents cited above be provided to the Committee in a
more timely manner.
General provision. --The Committee has included a general provision
(sec. 319) 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 $96,800,000.
The Committee believes that this reduction is justified given the
lack of material justifying the department's budget request as well as
the significant personnel reductions that have occurred within the
department over the past several years. For example, the department
projects that if staffing were held at the current level, the 1997
civilian full time equivalent (FTE) employment would be about 1,700, or
three percent, below the levels provided for in the fiscal year 1997
Department of Transportation and Related Agencies Appropriations Act. As
such, common administrative expenses like copying, supplies, computer
services, motor pool, parking and transit benefits, and
telecommunications services should be declining and can be accommodated
within the levels provided in this Act.
PAYMENTS TO AIR CARRIERS
(Airport and Airway Trust Fund)
Liquidation of contract authorization Limitation on obligations
Appropriation, fiscal year 1997 ($25,900,000) ($25,900,000)
Budget estimate, fiscal year 1998 (--------) (--------)
Recommended in the bill (--------) (--------)
xlBill compared with:
Appropriation, fiscal year 1997 (-25,900,000) (-25,900,000)
Budget estimate, fiscal year 1998 (--------) (--------)
The essential air service program was originally 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 $5 to $320, currently support air service to 82
communities and serve about 700,000 passengers annually. This program
was established to provide a smooth phaseout of federal subsidies to
airlines that serve small airports.
The Federal Aviation Reauthorization Act of 1996 (Public Law 104 264)
authorized the collection of user fees for services provided by the
Federal Aviation Administration to aircraft that neither take off from,
nor land in the United States, commonly known as overflight fees. In
addition, the Act permanently appropriated the first $50,000,000 of such
fees to be used for the essential air service program and rural airport
improvements. Amounts collected in excess of $50,000,000 are permanently
appropriated for authorized expenses of the FAA.
Consistent with the FAA reauthorization legislation enacted in 1996,
this program becomes a mandatory program in fiscal year 1998.
General provision. --Over the years, Congress and the department
have worked to streamline the essential air service program and to
increase its efficiency by eliminating communities that are within an
easy drive of a major hub airport or where the costs clearly outweigh
the benefits. The bill includes a limitation (sec. 331), as requested by
the administration, that continues the existing eligibility standards
and will help preserve those efficiencies. Specifically, this limitation
continues appropriations language that limits the number of communities
that receive essential air service funding by excluding points in the 48
contiguous United States that are located fewer than 70 highway miles
from the nearest large or medium hub airport, or that require a subsidy
in excess of $200 per passenger, unless such a point is more than 210
miles from the nearest large or medium hub airport.
PAYMENTS TO AIR CARRIERS
(airport and airway trust fund)
(rescission of contract authorization)
Rescission, fiscal year 1997 -$12,700,000
Budget estimate, fiscal year 1998 -38,600,000
Recommended in the bill -38,600,000
xlBill compared with:
Rescission, fiscal year 1997 -25,900,000
Budget estimate, fiscal year 1998
The bill includes a rescission of contract authority of $38,600,000.
This rescission removes contract authority which was provided in
previous authorizing Acts but is no longer needed to fund the essential
air service program. The Federal Aviation Reauthorization Act of 1996
(Public Law 104 264) authorized the collection of user fees for services
provided by the Federal Aviation Administration to aircraft that neither
take off from, nor land, in the United States, commonly known as
overflight fees. The Act permanently appropriated the first $50,000,000
of such fees to be used for the essential air service program and rural
airport improvements.
RENTAL PAYMENTS
Appropriation, fiscal year 1997 $127,447,000
Budget estimate, fiscal year 1998 10,567,000
Recommended in the bill
xlBill compared with:
Appropriation, fiscal year 1997 -127,447,000
Budget estimate, fiscal year 1998 -10,567,000
For the past several years, payments to GSA for headquarters and
field space rental and related services for modes of the department were
consolidated into the rental payments account. Beginning in fiscal year
1998, the budget proposes to fund all GSA rental payments from each of
the individual modal budgets. For OST-utilized space and proposed
security enhancements, the budget requests a total of $10,567,000.
The Committee recommendation adopts the budget proposal to revert all
GSA rental payments for headquarters and field space to the individual
modal administrations and to terminate the consolidated rent account.
Consistent with that proposal, the bill provides funding for the office
of the secretary's rent requirements in the salaries and expenses
account.
General provision. --The Committee has deleted language that was
included in the 1997 Department of Transportation Appropriations Act
that would permit the Secretary to transfer funds appropriated in the
bill for non-rental costs to pay for rent should they exceed the amounts
provided for rent in the bill. Since the Committee has provided the
department's request for rental payments, this provision is no longer
necessary.
MINORITY BUSINESS RESOURCE CENTER PROGRAM
Appropriation Limitation on direct loans
Appropriation, fiscal year 1997 $1,900,000 ($15,000,000)
Budget estimate, fiscal year 1998 1,900,000 (15,000,000)
Recommended in the bill 1,900,000 (15,000,000)
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998
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 Federal 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 1997 $ 2,900,000
Budget estimate, fiscal year 1998 2,900,000
Recommended in the bill 2,900,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998
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 OST purposes. The Committee has provided $2,900,000,
the same level as provided in fiscal year 1997 and included in the
budget estimate.
COAST GUARD
SUMMARY OF FISCAL YEAR 1998 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.
Including funds for national security activities and retired pay
accounts, the Committee recommends a total program level of
$3,881,696,000 for activities of the Coast Guard in fiscal year 1998.
This is $105,157,000 (2.8 percent) more than the fiscal year 1997
program level. Excluding mandatory programs, the recommended level is
$21,000,000 above the budget estimate.
The following table summarizes the fiscal year 1997 program levels,
the fiscal year 1998 program requests, and the Committee's
recommendations:
Program Fiscal year-- Committee recommended
1997 enacted 1998 estimate
Operating expenses\1\ \2\ $2,621,325,000 $2,740,000,000 $2,708,000,000
Acquisition, construction and improvements 374,840,000 370,000,000
370,000,000
Environmental compliance and restoration 22,000,000 21,000,000 21,000,000
Port safety development 5,000,000
Alteration of bridges 16,000,000 16,000,000
Retired pay\3\ 617,284,000 645,696,000 645,696,000
Reserve training 65,890,000 65,000,000 67,000,000
Research, development, test and evaluation 19,200,000 19,000,000 19,000,000
Boat safety\4\ 35,000,000 35,000,000
------------------ ------------------ ----------------
Total 3,776,539,000 3,860,696,000 3,881,696,000
\1\Fiscal year 1997 amount includes $300,000,000 in the Department of Defense Appropriations
Act, 1997 and transferred to the Coast Guard; fiscal year 1998 estimated and recommended
amounts include $300,000,000 specifically for national security activities of the Coast Guard and
scored against budget function 050 (defense).
\2\Fiscal year 1997 total includes $1,600,000 in supplemental appropriations from Public Law
105 18 related to TWA 800 disaster recovery expenses.
\3\Fiscal year 1997 total includes $9,200,000 provided in supplemental appropriations from
Public Law 105 18.
\4\Fiscal year 1998 estimate includes $50,000,000 proposed in mandatory spending.
BUDGET PRESENTATION
For many years, the Committee has been working with the Coast Guard
and the General Accounting Office to improve the Coast Guard's operating
budget in a way which more closely aligns the budget with actual
expenditures and presents the Congressional budget in a more
understandable, straightforward manner. Although much progress has been
made over the past few years, the Committee believes that the operating
budget can be improved further by reducing the number of programs,
projects and activities (PPAs) and more directly aligning those PPAs to
specific elements of the Coast Guard organizational structure. This will
more closely match the budget to accounting and fund distribution
systems within the Coast Guard, while providing the service with
adequate flexibility to execute funds as the year progresses. The
Committee recommendation reflects this new budget presentation, and the
Committee encourages the administration to continue this presentation
with the fiscal year 1999 budget submission.
OPERATING EXPENSES
(including transfer of funds)
Appropriation, fiscal year 1997 1,2$2,619,725,000
Budget estimate, fiscal year 1998 2,740,000,000
Recommended in the bill \3\2,708,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +88,275,000
Budget estimate, fiscal year 1998 -32,000,000
\1\Includes $300,000,000 in funds transferred from the Department of Defense.
\2\Excludes $2,026,805 in TASC reductions and $3,000 in reductions for bonuses and awards.
\3\Includes $300,000,000 in funds for national security activities included in this bill.
Including $300,000,000 for national security activities, the
Committee recommends a total of $2,708,000,000 for operating activities
of the Coast Guard in fiscal year 1998, an increase of $88,275,000 (3.4
percent) above the fiscal year 1997 appropriation, and $32,000,000 (one
percent) below the budget request. The following table compares the
fiscal year 1997 enacted level, the fiscal year 1998 estimate, and the
recommended level by program, project and activity:
COAST GUARD OPERATING EXPENSES
[In thousands of dollars, by fiscal year]
Program project and activity 1997 enacted\1\ 1998 estimate 1998
recommended
I. Personnel Resources $1,670,718 $1,723,261 $1,700,176
----------------- --------------- ------------------
================= ===============
==================
II. Operating Funds and Unit Level Maintenance 571,672 620,749 612,449
----------------- --------------- ------------------
1. 1st district (Boston) 34,660 36,172 36,172
2. 7th district (Miami) 48,150 50,251 50,251
3. 8th district (New Orleans) 30,896 32,244 32,244
4. 9th district (Cleveland) 19,719 20,579 20,579
5. 13th district (Seattle) 13,678 14,275 14,275
6. 14th district (Honolulu) 15,452 16,126 16,126
7. 17th district (Juneau) 23,080 24,087 24,087
================= ===============
==================
III. Depot-Level Maintenance 375,305 395,990 395,990
----------------- --------------- ------------------
================= ===============
==================
IV. Account-wide Adjustments -615
----------------- --------------- ------------------
================= ===============
==================
Total 2,617,695 2,740,000 2,708,000
\1\Includes reductions of $2,026,805 for TASC and $3,000 in bonuses and awards.
\2\Includes operating funds for Coast Guard Academy and Training Centers as well as general
funds for professional training and education.
\3\Includes ammunition and small arms (AFC 54) and Chief of Staff funds (AFC 40).
COMMITTEE RECOMMENDATION
The recommended reduction from the budget estimate includes the
following adjustments:
Amount
Public affairs staffing adjustment -$840,000
Professional training and education -1,645,000
FTE staffyear savings based on slow hiring rates -19,600,000
User fee offset, foreign flag cruise ships -615,000
Recruiting -1,000,000
Governor's Island caretaker status -8,300,000
-------------
Total -32,000,000
PERSONNEL RESOURCES
The bill includes $1,700,176,000 for pay, allowances and other
resources for Coast Guard military and civilian personnel, a reduction
of $23,085,000 (1.3 percent) from the budget estimate. Within the amount
provided, the bill includes all funds requested for special pays for
military personnel.
Public affairs staffing adjustment.-- The Committee recommendation
reduces public affairs staffing in the Coast Guard from 96 positions to
81, a reduction of 15 percent. This mirrors a Committee initiative two
years ago to reduce public affairs staffing in the FAA. The Committee
believes that a higher level of staffing for this activity is not
affordable given budget constraints.
Professional training and education.-- The President's budget
requested a $5,092,000 (23.7 percent) increase in this activity,
including an additional $1,800,000 for training related to increased
anti-drug activities. The Committee recommendation fully funds the
requested increase for anti-drug training, and 50 percent of the
increase for other Coast Guard training activities. This results in a
reduction to the budget estimate of $1,645,000,
and an increase of $3,447,000 (16 percent) above the fiscal
year 1997 enacted level.
Full-time equivalent (FTE) staffyear savings. --For fiscal year
1997, the Congress provided funding to support 42,330 full-time
equivalent (FTE) staffyears in the Coast Guard. The current projection
is that less staffyears will be utilized in fiscal year 1997 due to
hiring delays. Follow-on funding for these unfilled positions is assumed
in the fiscal year 1998 base funding for operations. The Committee
recommendation deletes a portion of those funds, a program savings of
$19,600,000.
Recruiting. --The recommendation includes a reduction of $1,000,000
in recruiting activities to offset an associated increase in recruiting
for the Coast Guard Reserve, found in the ``Reserve training''
appropriation. The Committee believes this is justified given the value
to the Coast Guard of reserve augmentation workhours and the shortfall
in reserve recruiting. This reduction should not be allocated against
new diversity recruiting initiatives.
OPERATING FUNDS AND UNIT LEVEL MAINTENANCE
The bill includes $612,449,000 for Coast Guard non-personnel
operating funds for field and headquarters facilities and units as well
as unit-level maintenance. This is $8,300,000 (1.3 pecent) below the
administration's request and $40,777,000 (7.1 percent) above the level
provided for fiscal year 1997.
Governor's Island caretaker status. --The Committee bill includes a
reduction of the $8,300,000 proposed for the Coast Guard to maintain
Governor's Island in a ``caretaker'' status until the end of fiscal year
1998--even though Governor's Island will be closed operationally in
August 1997. The Committee does not believe that, given the tight
transportation budget this year, the Coast Guard should allocate scarce
funds to serve as ``caretaker'' for a facility they no longer operate
and from which they will get no operational benefit during fiscal year
1998. The Department of Transportation and other federal agencies pay
rent to the General Services Administration (GSA) for disposal of such
excess properties. Since this property has been identified for disposal
and is being prepared for sale by the GSA, the Committee believes the
Federal Buildings Fund should be utilized for maintaining the facility
in caretaker status until the disposal is accomplished.
Mackinaw. --The bill includes the $4,865,000 in requested funding
for continued operation and maintenance of the icebreaking cutter
Mackinaw during fiscal year 1998.
Maritime Fire and Safety Association.-- Of the funds provided, the
Coast Guard is directed to allocate $146,500 to continue fire fighter
training and equipment and oil spill response activities with the
Maritime Fire and Safety Association for the Columbia River area in
Oregon and Washington. This continues activities funded in past years.
Energy conservation audits. --The Committee believes the Coast Guard
can do more to lower its operating costs through greater energy
conservation practices. Therefore, the Committee recommends the Coast
Guard provide additional funding for its Civil Engineering Division to
contract for energy audits and surveys to be used for the implementation
of energy conservation projects. These energy savings and performance
contracts will help the Coast Guard reduce its base operations costs
through energy savings. Projects with a payback of five years or less
should be given the highest consideration. The Committee understands
that $400,000 is needed for such audits and surveys in fiscal year 1998.
Ballast water management program.-- The Committee directs that, of
the amount provided, $1,995,000 shall be allocated to implement the
nationwide ballast water management program, as authorized in the
National Invasive Species Act of 1996 (Public Law 104 332). This is the
amount included in the budget request.
DEPOT LEVEL MAINTENANCE
The Committee recommends $395,990,000 for depot level maintenance for
shore facilities, electronic equipment, cutters, boats and aircraft, the
same as the budget estimate and $20,685,000 (5.5 percent) above the
enacted level for fiscal year 1997.
account-wide adjustments
User fee offset, foreign flag cruise ships. --Although the Congress
authorized a user fee in 1996 to offset the Coast Guard's costs to
inspect and certify foreign flag cruise ships operating in U.S. waters,
the Coast Guard has not yet implemented such fees. This is in stark
contrast to the FAA, which began collecting overflight user fees
approximately six months after authorization. The Committee believes the
Coast Guard can implement a more rapid schedule for collecting these
authorized fees, and has assumed offsetting collections of $615,000 from
this source, rather than a direct appropriation. Bill language has been
included allowing these receipts to be considered offsetting collections
to this appropriation.
BILL LANGUAGE
Increase for drug interdiction activities. --The Committee bill
provides the requested increase of $34,300,000 for additional drug
interdiction activities of the Coast Guard, but withholds obligation of
those funds until the Director of the Office of National Drug Control
Policy (ONDCP): (1) reviews the Coast Guard's proposed activities; (2)
compares those activities to other drug interdiction activities
government-wide; and (3) certifies that such expenditures represent the
best investment relative to other options. The bill also provides the
ONDCP director the flexibility to transfer all or part of these funds to
other federal agencies for other drug interdiction activites, based on
his review and assessment.
The Committee continues to believe that the use of illegal drugs in
this country is a serious problem which requires additional resources.
However, based on testimony and other information received this year, it
is not clear whether or not additional resources should be placed in the
hands of the Coast Guard or in other federal drug interdiction programs.
The Committee makes the following observations in this regard:
1. Over the past two fiscal years, the Coast Guard has not utilized
all funds provided by the Congress for their drug interdiction
activities. Over those years, approximately $15,000,000 was used for
other activities.
2. Even with the requested increase in funding, Coast Guard cutter
and aircraft operating hours for drug enforcement activities would be
lower in fiscal year 1998 than in 1997, and there are indications these
additional operating hours would not be completely dedicated to drug
interdiction activities; and
3. The efficiency of the Coast Guard's drug interdiction effort
continues to decline, even with stronger cueing from intelligence assets
over the past few years.
Given these uncertainties, the Committee believes a validation and
review of the cost-effectiveness of this particular increase is
required.
Defense-related activities. --The bill specifies that $300,000,000
of the total amount provided is for defense-related activities, the same
as the budget estimate. Of the amount provided for defense-related
activities, $5,250,000 is only for miscellaneous equipment for the Coast
Guard Reserve, as included in the House-reported National Defense
Authorization Act of 1998. The Committee understands these funds will be
used to help establish two additional port security units.
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.
Aircraft on hand.-- The bill limits the number of aircraft on hand
to not more than two hundred and twelve, compared to two hundred and
eighteen in fiscal year 1997 and two hundred and twenty-one in the
budget estimate. Subsequent to the budget request, the Coast Guard
indicated that a limitation of two hundred and twelve would be
sufficient for fiscal year 1998. A similar limitation has been in
appropriations Acts for several years.
Shipping commissioners.-- The bill retains a provision included in
appropriations Acts for several years which prohibits funds for pay or
administrative expenses of shipping commissioners.
Yacht documentation.-- The bill retains a provision included in
appropriations Acts for several years which prohibits funds for expenses
incurred for yacht documentation except to the extent that user fees are
collected for this purpose.
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.
ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS
Appropriation, fiscal year 1997 $374,840,000
Budget estimate, fiscal year 1998 379,000,000
Recommended in the bill 379,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +4,160,000
Budget estimate, fiscal year 1998
The bill includes $379,000,000 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.
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 1997 enacted level, the
fiscal year 1998 estimate, and the recommended level by program, project
and activity:
Offset Folios 219to 20 insert here
Vessels
The Committee recommends $191,650,000 for vessels, a reduction of
$24,850,000 below the amount provided for fiscal year 1997 and
$4,750,000 above the administration's request.
47-foot motor lifeboat replacement project .--The Committee
recommends $31,600,000, an increase of $10,000,000 above the budget
estimate and $5,600,000 (21.5 percent) above the amount provided for
fiscal year 1997. This will provide funding for an additional 10 boats
of this important vessel class, augmenting the Coast Guard's search and
rescue capability. The Committee believes this new capability will help
the Coast Guard more effectively respond in cases of extreme weather,
like the situation on February 12, 1997, in which three Coast Guardsmen
from Station Quillayute, Washington, perished while responding to a
distress call in a 44-foot motor lifeboat.
Polar icebreaker replacement follow-on .--The minor reduction of
$500,000 is based upon schedule delays in delivery of the Polar
icebreaker Healy, which permit a lower level of pre-commissioning
training during fiscal year 1998. This reduction is without prejudice to
the overall project.
Polar class icebreaker reliability improvement program .--The
reduction of $750,000 allows a smaller amount for contract change orders
than budgeted by the Coast Guard. In addition, the Committee recommends
a reduction of $2,000,000 to fund higher priority activities. The Coast
Guard indicates that these funds will not be required in fiscal year
1998.
Mackinaw replacement. --The Committee recommends $2,000,000 for
concept exploration to refine the specifications and costs for a heavy
icebreaking replacement vessel, including a new multi-mission vessel,
for the 53-year old Mackinaw. While the Committee is pleased that the
Commandant has committed to the continued operation of the Mackinaw to
maintain heavy icebreaking capabilities on the Great Lakes, the
Committee is concerned about the long lead time projected by the Coast
Guard to receive a replacement vehicle when the Coast Guard has been
studying this issue for a number of years, and projects that a
replacement vehicle would not be available until the year 2006 at the
earliest. The funding provided in the bill will prevent another year's
delay in the acquisition process for a replacement heavy icebreaking
vessel. The Committee expects the Coast Guard to issue an interim status
report on the concept exploration to the Committee by May 1, 1998.
Independent maritime response vessel (IMARV) .--The Committee
deletes the $2,000,000 requested for this project and directs the Coast
Guard to apply the unobligated balance of $2,000,000 in fiscal year 1996
funds to the deepwater capability concept exploration project,
effectively terminating the IMARV program. The IMARV program began
several years ago, as an effort to evaluate the cost-effectiveness of
Norwegian search and rescue crewing concepts in the United States. In
fiscal year 1996, the Congress appropriated $2,000,000 to procure two
IMARV boats. However, at this time the cost of each boat has doubled
from the original estimate, to $2,000,000 each. In addition, the Coast
Guard advised the Committee this year that no more than ten of these
vessels will be procured. The Committee believes it inadvisable to
continue with this program at the substantially higher procurement unit
cost, and questions whether the Coast Guard should be saddled with
maintaining another boat class in its inventory when such a small number
will be procured.
Deepwater capability concept exploration .--The reduction of
$2,000,000 is to be offset by the reprogramming of fiscal year 1996
IMARV funds into this account, providing total funding at the budget
request. In addition, the Committee has reduced the long range search
aircraft capability preservation project by $500,000. Those planned
activities can be financed with funds from the deepwater capability
concept exploration effort.
Aircraft
The Committee recommends $33,900,000 for aircraft, an increase of
$15,860,000 (88 percent) above the fiscal year 1997 enacted level and
$7,500,000 above the administration's request.
HC-130 aircraft sensor upgrade .--The Committee recommends total
funding of $13,800,000, including $11,800,000 in new budget authority
and $2,000,000 reprogrammed from fiscal year 1996 funding appropriated
for the C-130 SLAR project. Funding of $3,800,000 was included in the
budget request. The Committee believes an accelerated schedule for this
program is justified, given the Coast Guard's proposal to increase
anti-drug activities and the importance of nighttime surveillance to
that overall effort. This should be sufficient to outfit seven of the
Coast Guard's twelve C-130 aircraft with forward looking infrared radar
(FLIR) systems during fiscal year 1998.
Other Equipment
The Committee recommends $47,050,000 for other equipment, a reduction
of $2,650,000 (5 percent) below the budget estimate and $5,350,000 above
the fiscal year 1997 enacted level.
Ports and waterways safety system .--The Committee recommends
$5,500,000 for development and implementation of a new ports and
waterways safety system (PAWSS), as requested in the budget. Last year,
the Congress terminated the ``VTS 2000'' program and directed the Coast
Guard to take a streamlined and less costly approach to satisfy these
requirements. The Committee believes that the result of Coast Guard
activities to develop a new approach to navigation safety, in concert
with the maritime community, has been successful thus far. Working with
waterway
users, the Coast Guard has produced a plan for the use of
automated information system (AIS) technology. Such technology efforts
should reduce the complexity and cost of a vessel traffic service by
substantially reducing or eliminating the need for an extensive
shoreside Coast Guard infrastructure. The Committee believes that
successful implementation of the AIS approach will require Coast Guard
development of performance standards, testing at appropriate
high-intensity port areas, and continued dialogue with industry
stakeholders regarding AIS equipment and the most effective and
efficient manner to ensure the use of such systems in selected U.S.
ports.
Personnel management information system/joint uniform military pay
system .--The Committee recommends no funding for this program, a
reduction of $1,600,000 below the budget request. The Committee believes
further appropriations for this new accounting system can be deferred
until the Coast Guard makes a final decision on whether or not to
outsource this activity.
Local notice to mariners automation .--The Committee recommends
$750,000 for this project, a reduction of $1,050,000 from the budget
request. The Committee believes this can proceed at a slower pace due to
higher priority requirements. In addition, the Committee is not yet
convinced the Coast Guard has fully utilized the potential of collecting
user fees for local notice to mariners information, a past
recommendation of the Inspector General.
Shore Facilities and Aids to Navigation Facilities
The Committee recommends $59,400,000 for shore facilities and aids to
navigation facilities, a reduction of $9,600,000 from the budget
estimate and $7,050,000 (13 percent) above the fiscal year 1997 enacted
level.
Minor AC&I shore construction projects .--The Committee recommends
$6,600,000, a reduction of $1,400,000 from the budget request, but an
increase of 175 percent above the level provided in fiscal year 1997.
The reduction is due to budget constraints.
Group/Station New Orleans, LA-relocation .--The Committee recommends
$8,400,000 to relocate Group/Station New Orleans to Bucktown Harbor, an
increase of $4,200,000 above the budget estimate. The Committee believes
this project should proceed over one year in order to provide benefits
to the field sooner. The Coast Guard had proposed to finance the project
over two years. To expedite the required relocation, funds are provided
to complete both phases of the project. Additionally, the Committee is
concerned that the existing waterway at Bucktown Harbor may be
inadequate for safe and efficient current and future Coast Guard
operations. Therefore, the Committee directs that $3,000,000 of these
funds be used only to improve the condition of the waterway adjoining
the relocation site, including dredging, bulkhead repairs and bulkhead
replacement.
Omega termination cost .--The Committee recommendation transfers the
$6,700,000 budgeted for this activity to the Federal Aviation
Administration's ``Facilities and equipment'' appropriation. Two years
ago, the administration transferred the funding responsibility for Omega
from the Coast Guard to the FAA. Therefore, the Committee sees no
compelling reason to finance this singular project in the Coast Guard.
Bayonne, NJ pier construction .--The Coast Guard requested
$4,100,000 to relocate from the Marine Ocean Terminal Bayonne in New
Jersey because, according to the Coast Guard, ``this pier is a valuable
asset in attracting long-term commercial development to Bayonne''.
However, the Coast Guard could not offer a specific schedule specifying
when Coast Guard assets would need to be relocated, only stating that
they would be asked to relocate ``when commercial tenants are
identified''. Given higher priorities and the apparent lack of urgency,
the Committee recommends deferral of this project.
New London, CT-leadership development center .--The Committee
recommends a reduction of $1,600,000 in this project, and directs the
Coast Guard to utilize a corresponding amount in unobligated
streamlining funds from the fiscal year 1996 appropriation for this
project, to provide total funding at the requested level of $5,900,000.
Personnel and Related Support
The bill includes $47,000,000 for AC&I personnel and related support,
an increase of $750,000 (1.6 percent) above the fiscal year 1997 enacted
level, and the same as the budget estimate.
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
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. The bill allows asset
sale revenues to be credited to this appropriation as offsetting
collections, but limits the amount of offsetting collections in fiscal
year 1998 to $9,000,000, resulting in a corresponding savings in budget
authority. The Committee bill does not include the requested directed
scorekeeping language, since such language is outside the Committee's
jurisdiction and is opposed by the House Budget Committee, which has
jurisdiction over Congressional Budget Act matters.
ENVIRONMENTAL COMPLIANCE AND RESTORATION
Appropriation, fiscal year 1997 $ 22,000,000
Budget estimate, fiscal year 1998 21,000,000
Recommended in the bill 21,000,000
xlBill compared with:
Appropriation, fiscal year 1997 -1,000,000
Budget estimate, fiscal year 1998
This appropriation assists in bringing Coast Guard facilities into
compliance with applicable federal, state and environmental regulations;
conducting facilities response plans; developing pollution and hazardous
waste minimization strategies; conducting environmental assessments; and
conducting 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 of $21,000,000 is the same as the
budget request, and $1,000,000 below the fiscal year 1997 enacted level.
ALTERATION OF BRIDGES
Appropriation, fiscal year 1997 $16,000,000
Budget estimate, fiscal year 1998
Recommended in the bill 16,000,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998 +16,000,000
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 of the administration that obstructive
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 Committee recommends $16,000,000 for two bridges which have been
funded in past years, including fiscal year 1997. Both of the bridges
for which funds are recommended are authorized and have been issued an
order to alter by the Commandant of the Coast Guard. The Committee
directs that, of the funds provided, $9,000,000 shall be allocated to
the Sidney Lanier highway bridge in Brunswick, Georgia; and $7,000,000
shall be allocated to the Florida Avenue railroad/highway combination
bridge in New Orleans, Louisiana.
RETIRED PAY
Appropriation, fiscal year 1997 $617,284,000
Budget estimate, fiscal year 1998 645,696,000
Recommended in the bill 645,696,000
xlBill compared with:
Appropriation, fiscal year 1997 +28,412,000
Budget estimate, fiscal year 1998
This appropriation provides for the 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.
The Committee has approved the budget estimate of $645,696,000 for
this appropriation in fiscal year 1998. This compares to an
appropriation of $617,284,000 for fiscal year 1997, an increase of 4.6
percent. This is scored as a mandatory appropriation in the
Congressional budget process.
RESERVE TRAINING
Appropriation, fiscal year 1997 $65,890,000
Budget estimate, fiscal year 1998 65,000,000
Recommended in the bill 67,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +1,110,000
Budget estimate, fiscal year 1998 +2,000,000
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. Program activities fall into the following categories:
Initial training .--The direct costs of initial training for three
categories of non-prior service trainees.
Continued training .--The training of officer and enlisted personnel.
Operation and maintenance of training facilities .--The day-to-day
operation and maintenance of reserve training facilities.
Administration .--All administrative costs of the reserve forces
program.
The bill includes $67,000,000 for reserve training, an increase of
$1,110,000 (3 percent) above the fiscal year 1997 level. The
administration requested $65,000,000, a decrease of 3 percent.
Reimbursement to ``Operating expenses''. --The recommendation
includes a provision in the bill limiting to $20,000,000 the amount of
``Reserve training'' funds which may be transferred to ``Operating
expenses''. The budget estimated that $22,600,000 of the reserve
training appropriation would be transferred to the Coast Guard's
operating account to reimburse the Coast Guard for its support of the
reserves. Given the relatively small amount of the reserve training
appropriation and the declining size of the Selected Reserve, the
Committee wants to ensure the Reserves are not assessed excessive
charge-backs to the Coast Guard operating budget. The Committee believes
the proposed level of reimbursement may be too high, especially given
the substantial amount of reserve augmentation workhours provided by the
reserves in direct support of Coast Guard missions. In fiscal year 1998,
for example, the Coast Guard Reserves are expected to provide 1,095
staffyears in support of Coast Guard missions--2.7 percent of all Coast
Guard staff years. The Coast Guard's planned assessment to reimburse
their operating budget for reserve training activities does not
adequately consider this level of cross-support provided them by the
Coast Guard Reserve.
Recruiting. --Of the increase provided, $1,000,000 is to augment
recruiting activities of the Reserve. Coast Guard data presented to the
Committee this year indicate the Reserve is not meeting its recruiting
goals, and the percentage of recruits with prior military service is
falling well below the service's needs. This not only reduces the size
of the Reserve force, but raises costs, since recruits without prior
service experience require more training. In fiscal year 1997, the Coast
Guard estimated it would add 430 new recruits, compared to 227 in fiscal
year 1996. However, as of mid-March 1997, the Coast Guard had signed up
only 133 new reservists. In its June 17, 1997 report accompanying the
National Defense Authorization Act of 1998, the Senate Committee on
Armed Services noted this problem:
The committee is concerned that the Coast Guard
Reserve's end strength has fallen significantly below the
authorized and appropriated level for fiscal year 1996 and
remains so for fiscal year 1997. It is apparent that this end
strength shortfall stems from difficulties in recruiting Coast
Guard reservists . . . while the active duty Coast Guard
exceeded 100 percent of their [recruiting] goals, only 65
percent of those needed were recruited for the reserve force
in fiscal year 1996 . . . Finally, the committee notes that
the Coast Guard has not applied the various bonus programs
that currently exist in law to recruit reservists up to
authorized and appropriated end strengths.
To address these concerns, the Committee's recommendation includes an
additional $1,000,000 for Reserve recruiting, raising funding for this
activity from $2,066,000 to $3,066,000.
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION
Appropriation, fiscal year 1997 $ 19,200,000
Budget estimate, fiscal year 1998 19,000,000
Recommended in the bill 19,000,000
xlBill compared with:
Appropriation, fiscal year 1997 -200,000
Budget estimate, fiscal year 1998
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, $3,500,000 is to be derived from
the oil spill liability trust fund. This is the same as the budget
request and $200,000 less than the amount provided last year.
BOAT SAFETY
(aquatic resources trust fund)
Appropriation, fiscal year 1997 $35,000,000
Budget estimate, fiscal year 1998 \1\
Recommended in the bill 35,000,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998 +35,000,000
\1\President's budget requests $50,000,000 in mandatory appropriations in fiscal year 1998.
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 by the Federal Boat Safety Act of 1971 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 $20,000,000 in permanent
indefinite appropriations from the Clean Vessel Act of 1992 (Public Law
102 587), total program funding of $55,000,000 is provided for fiscal
year 1998. This is a $10,000,000 (22.2 percent) increase over the fiscal
year 1997 level. 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 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.
Annual Congressional review and direction will be needed to ensure
implementation of initiatives raised in the Safety Board's earlier study
as well as to continue other boating safety activities.
Loss of authorized funding. --The Coast Guard has stated a 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 automatically reallocated to the
sport fish restoration program and spent in the same fiscal year. The
Committee acknowledges that this feature of the boating safety grant
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 support 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. --At the present time, all boating
safety grant funds for this program are distributed by formula. Perhaps
because of this, the Coast Guard is not active in facilitating the use
of grant funds to provide incentives for poorer-performing states to
make improvements in their boating programs. This is in contrast to the
Federal Highway Administration, National Highway Traffic Safety
Administration, Federal Transit Administration, and the Federal Aviation
Administration, all of which use their discretionary grants programs to
facilitate improvements in safety or capacity. 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. The Committee encourages the Coast Guard to work with the
appropriate legislative committees of the Congress to support
authorization of a discretionary grants component of this overall
program.
FEDERAL AVIATION ADMINISTRATION
SUMMARY OF FISCAL YEAR 1998 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 1998. 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 continuation of the
aviation ticket tax and other related aviation excise taxes throughout
fiscal year 1998 and assumes no new user fees.
The total recommended program level for the FAA for fiscal year 1998
amounts to $9,060,000,000, including a $1,700,000,000 limitation on the
use of contract authority. This is $648,900,000 (7.7 percent) above the
President's request and $794,088,000 (9.6 percent) above the fiscal year
1997 enacted level for similar, non-emergency activities. The following
table summarizes the fiscal year 1997 program levels, the fiscal year
1998 program requests, and the Committee's recommendations:
Program fiscal year--
1997 enacted 1998 estimate 1998 recommended
Operations\1\ $4,900,000,000 $5,361,100,000 $5,300,000,000
Facilities and equipment\2\ 1,790,000,000 1,875,000,000 1,875,000,000
Research, engineering and development\3\ 187,412,000 200,000,000 185,000,000
Grants-in-aid for airports (AIP) 1,460,000,000 1,000,000,000 1,700,000,000
---------------- ---------------- ------------------
Total 8,262,412,000 8,411,100,000 9,060,000,000
\1\Excludes $57,900,000 in emergency appropriations contained in Public Law 104 208.
\2\Excludes $147,700,000 in emergency appropriations contained in Public Law 104 208.
\3\Excludes $21,000,000 in emergency appropriations in Public Law 104 208.
STATUS OF THE AIRPORT AND AIRWAY TRUST FUND
The Committee has long endeavored to match aviation trust fund
spending with revenues coming into the fund. This was increasingly
difficult over the 1994 1996 time period, due to Congressional caps on
the amount of FAA funding which could be taken from the trust fund.
Despite this, however, the Committee continues to believe that Congress
should work to ensure that the aviation trust fund does not build up
large balances of unobligated funds, and that the fund should be used to
finance approximately 85 percent of the FAA's overall budget. Because
the legislative ceiling places a priority on trust fund spending for
capital programs, the Committee's recommendation to increase capital
spending is expected to reduce any possible balance in the aviation
trust fund.
NATIONAL CIVIL AVIATION REVIEW COMMISSION
On July 19, 1996, the House Committee on Appropriations proposed the
establishment of a National Civil Aviation Review Commission (NCARC).
The Committee's intent in this proposal was to provide ``a
comprehensive, independent review of FAA safety oversight, financial
prospects and options, and acquisition policy''. Establishment of this
commission was later included in the FAA Reauthorization Act of 1996,
and an appropriation of $2,400,000 was provided in the DOT and Related
Agencies Appropriations Act, 1997. The commission is expected to report
its findings in September 1997.
The Committee believes the work of this high-level commission could
be of significant value to the Congress as new directions are being set
for aviation policy in the coming years. However, the Committee wishes
to emphasize to the commission that its recommendations regarding safety
oversight and improvement should be considered of equal importance to
financing and airport development issues. It should be clear from last
year's Committee report that a review of safety is of the utmost
importance. Secondly, the Committee believes the legislative history and
charter for the commission does not require development of a new
financing system for the FAA, as some have suggested, but an independent
review of all options--including the benefits of the current excise tax
system. The Committee looks forward to receiving the work of the
commission later this year.
In following up on the work of the National Civil Aviation Review
Commission over the coming months, and to help restore the credibility
and effectiveness of the agency, the Committee encourages the new
Administrator to establish an informal working group composed of former
FAA Administrators to advise her and the Secretary of Transportation
regarding the future direction and needed policies of the agency. The
Committee believes the views of these former executives could be
invaluable in helping shape the agency's future.
The Committee wishes to emphasize to the new Administrator, the
Secretary, and this working group that the highest priorities for their
immediate attention and review are matters related to aviation safety.
The Committee believes that safety must be given the highest priority in
both the department and the agency to address known and potential
problems.
ADDITIONAL FUNDS FOR SAFETY AND CAPACITY ENHANCEMENT
PROGRAMS
The bill includes a total of $175,044,000, above the budget estimate,
for new air traffic control equipment and systems, site preparation and
installation, and research to improve aviation safety and airway
capacity around the country. This represents 8.5 percent of total ATC
modernization funding.
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.
This is especially true in aviation due to heightened public concern
raised last year. The Committee feels strongly that additional funding
emphasis should be placed on new safety-related capabilities and
equipment, and is disturbed with FAA proposals to reduce funding for
safety equipment and research. In some areas the FAA has even suggested
that the agency might abandon its responsibility for certain systems
altogether, leaving it to aviation industries and airports industries to
finance the acquisition of such equipment rather than the FAA. At the
same time, the agency's budget includes many low priority, non-safety
items as well as funding for an organizational structure which a recent
independent financial assessment called inefficient. The Committee has
re-prioritized funding for individual capital programs, in order to
place a higher emphasis on safety--the FAA's major mission area.
The Committee also notes that over the past year the FAA has been
less than diligent in meeting the Committee's direction to pursue
Congressional safety improvements ``aggressively as a high priority''.
In some cases, the agency has inappropriately used fiscal year 1997
funds for unapproved activities; in other cases, the agency has taken an
excessive amount of time to obligate funds. The Committee will monitor
this situation intently, and reiterates its expectation that the agency
execute these programs in an aggressive manner.
AGENCY CULTURE AND THE NEED FOR STABLE LEADERSHIP
The Committee is concerned over the effects of a lack of stable,
long-term leadership at the FAA and, as a result, the development of an
agency culture which is resistant to change, defensive, and
turf-conscious. Without stable leadership at the top of the
organization, lower level agency officials make their own decisions
without effective coordination or accountability. Each FAA ``line of
business'' is now making its own decisions, fighting over its own turf,
and when poor decisions are made, attempts are often made to cover up
the problems or ignore them. Over the past few years, this has been most
pronounced in the areas of acquisition and development as well as
regulation and certification. Last year, at the request of this
Committee the General Accounting Office completed an exhaustive analysis
of the FAA's acquisition culture, to determine whether cultural
influences were causing some of the agency's longstanding problems. They
found that often FAA's acquisition staff emphasized self-interest over
the agency's mission; established unrealistic cost and schedule
estimates in order to ``sell'' new programs to their superiors; hid bad
news from those higher in the organization; did not cooperate with other
FAA employees; and did not take responsibility for their actions.
Inspector General audits and investigative reports document aspects of
this culture and its effects on the agency's programs. The former
Inspector General even took the unusual step of advising the FAA
Administrator last year of a ``troubling culture'' at the agency, where
managers were not being held accountable for their errors. She warned,
``until senior FAA management is willing to send a different message, I
suspect that the pattern of abuse we identified will, unfortunately,
continue''.
The FAA does not have a funding crisis. They have a crisis of
management and leadership. Over many years, an organizational culture
has developed which is secretive rather than open; self-interested
rather than public spirited; and highly resistant to change. Given such
a situation, the Committee is very encouraged that the FAA may have new,
appointed leadership soon. The Committee believes it is imperative for
the new administrator to place a high priority on gaining effective
control of the agency and restoring morale, openness, and overall
credibility to the Congress and the traveling public.
OPERATIONS
(Including Airport and Airway Trust Fund)
Appropriation, fiscal year 1997 \1\$4,900,000,000
Budget estimate, fiscal year 1998 \2\5,336,100,000
Recommended in the bill 5,300,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +400,000,000
Budget estimate, fiscal year 1998 -36,100,000
\1\Excludes $2,811,301 in TASC reductions and $176,888 in reductions for bonuses and awards.
Also excludes $57,900,000 in emergency appropriations provided in Public Law 104 208.
\2\Includes $300,000,000 appropriation of user fees.
This appropriation provides funds for the operation, maintenance,
communications, and logistical support of the air traffic control and
air navigation systems. It also covers administrative and managerial
costs of the FAA's regulatory, airports, medical, engineering and
development programs.
The operations appropriation includes the following major activities:
(1) operation on a 24-hour daily basis of a national air traffic control
system; (2) establishment and maintenance of a national system of aids
to navigation; (3) establishment and surveillance of civil air
regulations to assure safety in aviation; (4) development of standards,
rules and regulations governing the physical fitness of airmen as well
as the administration of an aviation medical research program; (5)
administration of the acquisition, research and development programs;
(6) administration of the civil aviation security program; (7)
headquarters, administration and other staff offices; and (8)
administration of the federal grants-in-aid program for airport
construction.
Committee Recommendation
The Committee recommends $5,300,000,000 for FAA operations, an
increase of $400,000,000 (8.2 percent) above the level provided for
fiscal year 1997. This compares to a level of $5,336,100,000 in the
President's budget request (including user fee proposals). Of the level
provided, $3,425,000,000 shall be derived from the aviation trust fund,
as requested. In addition, the FAA will receive a $50,000,000 permanent
user fee appropriation from overflight fees, bringing the total
operating increase to 9.2 percent during fiscal year 1998. The
recommendation fully funds the request for 500 additional air traffic
controllers and 326 additional aviation safety inspectors and other
safety oversight personnel.
A breakdown of the fiscal year 1997 enacted level, the fiscal year
1998 budget estimate, and the Committee recommendation by budget
activity follows:
Budget activity Fiscal year--
1997 enacted 1998 estimate 1998
recommended
Air traffic services $3,801,353,000 $4,192,516,000
$4,171,707,000
Aviation regulation and certification 501,921,000 613,768,000
613,768,000
Civil aviation security 114,360,000 98,651,000
98,154,000
Administration of airports 45,051,000 48,052,000
48,052,000
Research and acquisition 85,767,000 92,858,000
92,858,000
Commercial space transportation 6,040,000 6,182,000
6,182,000
Administration 330,044,000 262,143,000
258,491,000
Staff offices 70,376,000 71,930,000 69,925,000
Account-wide adjustments -9,137,000
Adjustments (e.g., emergency appropriations, general reductions) -54,912,000
---------------- ---------------- ------------------
Total budget 4,900,000,000 5,386,100,000
5,350,000,000
================ ================
==================
User fee appropriation (mandatory) 50,000,000
50,000,000
Appropriation in this bill 5,336,100,000 5,300,000,000
---------------- ---------------- ------------------
Total available funding 5,386,100,000
5,350,000,000
A summary of recommended adjustments to the budget estimate is as
follows:
Amount
Air Traffic Services:
-$6,000,000
-2,625,000
-3,659,000
-6,200,000
-2,325,000
+1,500,000
-1,500,000
Civil Aviation Security:
-497,000
Administration:
-1,852,000
-1,800,000
Staff Offices:
-1,825,000
-180,000
Account-wide Adjustments:
-5,900,000
-2,875,000
-120,000
-242,000
-36,100,000
FAA FUNDING SITUATION
Over the past three years, the Department of Transportation and the
FAA have suggested that the Congressional budget process might be unable
to provide funding for the FAA's true needs over the 1997 2002 time
frame. In response to this and other concerns, Congress called for an
independent assessment of FAA's long-term finances last year.
The independent assessment of FAA's financial situation concluded that:
(1) With little or no change in FAA's operations, the agency's
estimate of their long-term funding requirement is reasonable; and
(2) Significant opportunities for cost savings and efficiencies
exist in the FAA today, and should be taken advantage of.
After reviewing this report and other information submitted by the
FAA, the Committee does not believe the Congressional budget process is
inherently or structurally incapable of providing adequate resources for
the FAA. The resources in this bill confirm that the Congress can
provide significantly increasing resources for the FAA, even as
continued progress is made toward eliminating the federal deficit. In
this bill, appropriations for FAA's air traffic operations increase
approximately 10 percent--far beyond the estimated rate of increase in
aviation activity. Grants for improvements at our nation's airports are
increased by 16 percent, and 70 percent above the administration's
request. Funding for FAA air traffic control capital programs are above
the fiscal year 1997 level as well.
In recommending such a large percentage increase in the agency's
operating budget, the Committee hopes the FAA will leverage this
increase by making structural and process changes in the agency to
improve productivity and reduce waste, as suggested in the independent
assessment. The independent assessment concluded that even a 10 percent
improvement in air traffic productivity would save the agency
$21,000,000 a year in operating costs, and recommended the FAA
Administrator mandate that FAA's Productivity Working Group establish
specific goals and expectations in this area. They noted ``air traffic
control operations costs continue to increase faster than the demand for
FAA air traffic control services''. The head of FAA's Air Traffic
Service even said the following before the Committee this year: ``Are
there things that we can do to improve the productivity? Absolutely''.
However, currently the FAA's budget assumes no air traffic control
productivity improvements in the 1998 2000 time period, while projecting
large workforce growth over those years.
Similarly, the independent assessment of FAA concluded ``the
potential for efficiency savings through the realignment of the FAA,
both at the headquarters and the regional level, is significant''. The
Acting IG testified before the Committee ``there are a lot of
opportunities for them [the FAA] to reduce their operating costs''. The
Acting Administrator even testified, ``I would agree that there are
certainly opportunities for savings by taking a look at the overhead
costs * * * certainly there are opportunities there, yes''. The head of
air traffic added, ``I have worked for the FAA for 24 years now, and for
all of those years it has been clear to me that there are enormous
efficiencies that we could gain through looking at our regional
structure''.
The Committee will do its part--and the FAA should match that by
aggressively eliminating inefficiencies and waste, by streamlining and
consolidating its organizational structure, and by improving
productivity.
USER FEES
The bill assumes the collection of no additional user fees in fiscal
year 1998 that were not in effect during fiscal year 1997 and includes a
provision prohibiting funds in this Act from being used to plan or
promulgate any regulation to institute any new user fee not specifically
authorized by law after the date of enactment of this Act. The bill
assumes the FAA will collect approximately $100,000,000 during fiscal
year 1998 from overflight user fees, and that $50,000,000 of that amount
will be used to finance the essential air service and rural airport
programs, as authorized last year.
The Committee has not approved the FAA's proposed appropriation of
$300,000,000 in new user fees, but instead provides those funds as a
direct appropriation. Although the FAA testified this year that such
fees would be ``a reasonable and proactive step towards ensuring a
reliable revenue stream'', the agency later offered testimony indicating
the unreliability of such fee collections. The Acting Administrator
stated, ``The $300,000,000 translates roughly into about 4,000 jobs, so
to the extent that we do not have all of the $300,000,000, we would be
looking at a budget shortfall certainly, and then we would have to start
making the hard decisions''. The Committee believes the FAA provides
critical safety services to the traveling public. Subjecting the
provision of these services to the uncertainties of user fee
collections, possible court injunctions, and legislative exemptions for
one class of user or another would lead to a financing nightmare for the
agency and for the traveling public.
There are other concerns with the user fee proposal as well: (1) at
least one of the proposed fees does not appear to meet existing criteria
that such fees be directly related to the service performed by the
agency; (2) the agency itself did not request such a rapid imposition of
fees, but was directed to do so by higher authorities in the
administration; (3) the agency's cost accounting system is unable to
reasonably assure that fees collected will be related to specific
services provided; (4) the theory behind the fee proposal is based, in
part, on the industry's willingness to pay, which raises concerns about
fairness in a monopoly service such as air traffic control; (5) the FAA
does not track all staffing at the facility level, which raises
questions about their ability to properly assign costs to airway system
users; and (6) such a financing arrangement would set a wide-ranging
precedent visible to other federal agencies whose ultimate effect on the
provision of government services is unknown.
In summary, the Committee is unclear whether enactment of the user
fee proposal would serve the purpose of efficiency in government.
Therefore, the Committee cannot support the FAA user fee proposal.
The Committee's specific recommendations by budget activity are
discussed below.
AIR TRAFFIC SERVICES
The Committee recommends $4,171,707,000 for air traffic services, an
increase of $370,354,000 (9.7 percent) above the fiscal year 1997
enacted level. The recommendation provides a net increase of 500 air
traffic controller positions and 607 additional staffyears. The
recommendation also provides an increase of $85,588,000 (10.4 percent)
in field maintenance. The Committee believes substantial increases are
needed as air traffic activity continues to increase, and as FAA
struggles to maintain both old and modernized air traffic control
systems simultaneously.
The following chart compares the 9.7 percent increase in the bill for
air traffic service funding to the projected percentage increases in
several commonly used measures of aviation activity. As the chart
indicates, the FAA's air traffic budget will rise in fiscal year 1998 at
a substantially greater rate than aviation activity. The Committee
believes this ensures adequate resources to accommodate rising air
travel, provides a margin for future traffic growth, and provides
increased resources for technical training of air traffic controllers
and other personnel.
Measure Fiscal year-- Percent change
1997 1998
Air traffic services budget $3,801,353,000 $4,171,707,000 +9.7
IFR aircraft handled at centers 40,900,000 41,800,000 +2.2
IFR operations at airports 46,800,000 47,400,000 +1.3
VFR operations at airports 6,000,000 4,700,000 -21.6
Operations per center controller 5,298 5,180 -2.2
Flight services per employee 9,841 9,932 +0.9
Operational errors.-- The Committee is pleased that both the number
and rate of operational errors among air traffic controllers at en route
centers continued to decrease in fiscal year 1996, after increasing in
the 1992 1994 time period. While most facilities showed declines in
their error rates, the FAA is encouraged to investigate thoroughly the
causes for error at those facilities which showed error rate increases
during fiscal year 1996 and thus far in fiscal year 1997. The Committee
will monitor this situation to ensure that a high and consistent level
of safety is maintained over the entire country.
Adjustments to the budget estimate are as follows:
Hazardous materials (HAZMAT)/safety. --The FAA proposed a $6,000,000
(240 percent) increase to raise the level of effort in a project titled
``HAZMAT/safety''. However, according to budget justification material,
this should more appropriately be classified as environmental and
OSHA-related work. For example, the budget includes $1,000,000 to train
FAA personnel in the proper application of herbicides and pesticides and
$600,000 for travel, to help FAA field personnel better understand
energy conservation techniques. While the Committee has no objection to
this type of activities per se, given budget constraints it is hard to
justify a 240 percent increase. The Committee recommendation holds these
activities to the fiscal year 1997 level, a reduction of $6,000,000 from
the budget estimate.
Air traffic system requirements service. --The recommendation
reduces funding for this office by $2,625,000. The Committee believes
this relatively new office of 209 staff is unusually top-heavy and has a
large number of vacant positions. The recommendation eliminates the 26
positions currently vacant and assumes that positions vacated during the
year would not be backfilled. This results in savings of 35 positions, a
reduction in staffing of 16.7 percent.
Contract maintenance. --The Committee continues to believe that the
FAA could be more efficient with its scarce resources if in-house
maintenance personnel were utilized to a greater percent, relative to
contract maintenance. The President's budget proposed an increase of
$24,396,000 (21 percent) in contract maintenance. The Committee bill
assumes a fifteen percent savings in this work if conducted in-house, a
savings of $3,659,000 from the budget estimate.
Leased telecommunications.-- The Committee's proposed reduction of
$6,200,000 reflects the fact that FAA has not utilized all of the
appropriation for this activity in either of the past two fiscal years,
yet is requesting a 5.2 percent increase in such expenses for fiscal
year 1998. The recommendation allows an increase of 3 percent.
Associate administrator for air traffic services, headquarters
staffing.-- The Committee recommends a reduction of $2,325,000 for this
office, to be allocated as follows:
Office Budgeted FTE Recommended FTE Difference
Director's office 18 14 -4
Air traffic plans and requirements 86 75 -11
Director of airways facilities 46 35 -11
NAS transition office 30 25 -5
The Committee has endeavored, wherever possible, to find savings in
administrative areas in order to fully support the requested increases
in safety-related positions. The Committee believes the agency can
accommodate these small reductions in headquarters without impact on the
provision of services to the public.
Mid-America aviation resource consortium.-- The Committee expects
the FAA to continue the agency's commitment to the Mid-America Aviation
Resource Consortium (MARC) in Minnesota, and has included $1,500,000 in
the bill for this purpose. These funds are to be used in Minnesota to
support the air traffic controller training program, to continue
research and curriculum development for the FAA, to follow up on MARC
graduates, and to develop other materials as needed for FAA-related
projects. The Committee also directs the FAA to continue the current
contractual relationship with MARC, as prescribed by law. The Committee
continues to be concerned about the FAA's ability to develop an
effective, long-term plan for training en route controllers and
determining controller staffing needs. MARC has a successful record in
placing its graduates directly in the field, and the Committee both
supports and encourages this cost-effective manner of training.
Permanent change of station moves, air traffic.-- The Committee
recommendation allows $14,200,000 compared to the budget request of
$15,700,000. The recommendation allows an increase of 446 percent above
the level estimated for fiscal year 1997 compared to a 504 percent
increase assumed in the budget estimate.
Cherry Capital Airport study, Michigan.-- The Committee understands
that the FAA prepared in 1994 and in 1996 studies of the operations at
the Cherry Capital Airport in Michigan that produced significantly
different estimates of the costs and benefits of installing radar
equipment at the airport. The Committee directs the General Accounting
Office to review the FAA's 1994 and 1996 ASR Critical Values studies on
Cherry Capital Airport, and to report to the House and Senate Committees
on Appropriations within thirty days on the validity of the FAA's
estimates of forecasted operations at the airport, and the costs and
benefits of installing improved radar equipment at that site.
National weather service staff at en route centers.-- The Committee
recommendation includes $8,374,000 to retain the services of National
Weather Service personnel at FAA en route centers, an increase over the
$8,052,000 provided for fiscal year 1997. This is the same as the budget
request.
Sick leave.-- The Committee notes that the controller workforce
consumes sick leave at a rate approximately 25 percent higher than the
government-wide average and 48 percent higher than the rest of the FAA.
The average controller consumes 11.1 days per year of sick leave,
compared to an aviation safety inspector, who consumes 5.9 days. The
Committee encourages the FAA to investigate the causes of these
differences and consider innovative ways to reduce sick leave
consumption, such as leave pooling, without undermining the legitimate
needs of its workforce.
ATC staffing needs.-- The Committee is concerned about a recent
finding of the General Accounting Office that the FAA may be overstating
its true needs for air traffic controllers in future years. This appears
to confirm a
finding of the independent assessment that there is a ``high
likelihood'' FAA has overstated its future air traffic workload. Given
the significant budgetary impact of findings in this area and the need
to ensure adequate staffing for air traffic control facilities, the
Committee urges the FAA to analyze these concerns and ensure that future
staffing requests are fully justified.
Aviation Regulation And Certification
The Committee recommends $613,768,000 for aviation regulation and
certification, the same as the budget request and an increase of
$111,847,000 (22.3 percent) above the fiscal year 1997 enacted level.
The recommendation funds 5,882 staff years, an increase of 481 (8.9
percent) above fiscal year 1997. The bill fully funds all requested
position increases, including airworthiness inspectors (+117), airline
operations inspectors (+118), safety-related technical support staff
(+68), and manufacturing certification inspectors (+6). The Committee
agrees that this additional staffing is needed, even considering the
significant increases in staffing provided over the past three years.
Certification of commercial cargo aircraft.-- The Committee is aware
of efforts to introduce certain commercial cargo aircraft into the
heavy, outsize transportation market. The Committee recommends that all
regulatory efforts be made to support the employment of such aircraft's
full range of capabilities which have commercial market value. Because
this technology is different from other commercial transport aircraft,
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