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[From Thomas, a service of the U.S. Congress through its Library.
Check for accuracy before citing or quoting.]
49 926
105 th Congress
Report
HOUSE OF REPRESENTATIVES
2d Session
105 648
DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS BILL,
1999
July 24, 1998.--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. 4328]
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, 1999.
INDEX TO BILL AND REPORT
Page number
Bill
Report
Narrative summary of Committee action
2
Program, project, and activity
5
Title I--Department of Transportation:
Office of the Secretary
2
5
Coast Guard
6
19
Federal Aviation Administration
11
43
Federal Highway Administration
17
80
National Highway Traffic Safety Administration
19
101
Federal Railroad Administration
22
111
Federal Transit Administration
26
122
Saint Lawrence Seaway Development Corporation
35
168
Research and Special Programs Administration
36
169
Office of Inspector General
38
174
Surface Transportation Board
38
174
Title II--Related Agencies:
Architectural and Transportation Barriers Compliance Board
39
176
National Transportation Safety Board
39
176
Title III--General Provisions
40
178
House Report Requirements:
Appropriations not authorized by law
189
Changes in existing law
184
Comparison with budget resolution
189
Constitutional authority
180
Financial assistance to state and local governments
190
Five-year projections of outlays
190
Ramseyer
181
Rescissions
180
Transfers of funds
181
Tabular summary of the bill
192
SUMMARY AND MAJOR RECOMMENDATIONS OF THE BILL
The accompanying bill would provide $13,735,899,900 in new budget
(obligational) authority for the programs of the Department of
Transportation and related agencies, an increase of $276,728,900 above
the $13,459,171,000 requested in the budget. In total, the bill includes
obligational authority (new budget authority, guaranteed obligations
contained in the Transportation Equity Act for the 21st Century (TEA21),
limitations on obligations, and exempt obligations) of $46,891,913,900.
This is $4,767,529,134 more than the comparable fiscal year 1998 enacted
levels and $3,878,791,043 more than the budget request.
Selected major recommendations in the accompanying bill are:
(1) An appropriation of $7,677,558,000 for the Federal Aviation
Administration, an increase of $275,964,000 above the fiscal year 1998
level;
(2) A provision providing for $1,800,000,000 for grants-in-aid for
airports, an increase of $100,000,000 over the fiscal year 1998 level
and the budget request;
(3) An appropriation of $2,700,000,000 for operating expenses of the
Coast Guard, including $406,000,000 for counter-drug activities (an
increase of $40,000,000 or 11 percent) above the fiscal year 1998 level;
(4) An appropriation of $609,230,000 for grants to the National
Railroad Passenger Corporation (Amtrak), to cover capital expenses;
(5) An appropriation of $50,000,000 to complete the construction of
the 103-mile Washington, D.C. metrorail system;
(6) A total of $73,230,900 for the office of the secretary,
$4,993,100 below fiscal year 1998 and $5,175,100 below the budget
request;
(7)Highway program obligation limitations of $25,511,000,000,
consistent with provisions of TEA21, and $4,011,000,000 over fiscal year
1998; and
(8) Transit program obligation limitations of $5,365,000,000
consistent with provisions of TEA21, and $521,262,000 over fiscal year
1998.
THE EFFECT AND IMPLEMENTATION OF THE TRANSPORTATION EQUITY ACT FOR THE
21ST CENTURY
Over the objections of the House and Senate Committees on
Appropriations and the House and Senate Budget Committees, the
Transportation Equity Act for the 21st Century (TEA21) amended the
Budget Enforcement Act to provide two new additional spending categories
or ``firewalls'', the highway category and the mass transit category.
The highway category is comprised of all funding for federal-aid
highways, motor carrier safety programs, highway safety grants, and
highway safety research and development programs. The highway category
obligations are capped at $25,883,000,000 and outlays are capped at
$21,885,000,000 in fiscal year 1999. If appropriations action forces
highway obligations or outlays to exceed these levels, the difference is
charged against the non-defense discretionary spending category.
Likewise, the transit category is comprised of funding for transit
formula grants, transit capital projects, Federal Transit Administration
administrative expenses, transit planning and research programs, and
university transportation research. The mass transit category
obligations are capped at $5,365,000,000 and outlays are capped at
$4,401,000,000 in fiscal year 1999. Any additional appropriated funding
above the levels specified as guaranteed for each transit program in
TEA21 (that which could be appropriated from general funds authorized
under section 5338(h) of TEA21) is charged to the non-defense
discretionary category.
These ``firewalls'' make it virtually impossible for the
Appropriations Committee to make downward adjustments to those funding
levels in the annual appropriations process over the next five years.
This Committee argued that providing large increases for those programs,
and guaranteeing those amounts through firewall mechanisms and points of
order in the House, essentially created mandatory appropriations within
the discretionary caps, which would undermine Congressional flexibility
to fund other equally important programs. As a result, of the
$46,891,913,900 of budgetary resources provided in this bill, nearly 70
percent, is not controlled by annual appropriations Acts but is
predetermined by TEA21. The remaining $14,800,000,000 includes
appropriations and budgetary resources principally for the National
Railroad Passenger Corporation (Amtrak), the U.S. Coast Guard, the
Federal Aviation Administration, the offices of the secretary, the
Research and Special Programs Administration, and a number of smaller
independent agencies. These appropriations are currently controlled by
annual appropriations action.
The Committee has worked hard in this new environment to produce a
balanced bill, which provides adequately for all modes of
transportation. The transportation subcommittee has been allocated a 7.4
percent increase ($2.8 billion) in outlays for the coming fiscal year,
while the non-defense discretionary budget as a whole is at a hard
freeze. Clearly, this increase will cause non-transportation programs
all across the government to be under more severe budget pressures, in
order to keep the overall budget in balance. However, the effect of the
firewalls also leaves its mark on those transportation programs and
activities not covered within the surface transportation
guarantees--most notably the Coast Guard and the Federal Aviation
Administration. Since the highway and transit guarantees consume the
full 7.4 percent increase provided to the Subcommittee, other agencies
in the bill must compete for leftover funding, which is essentially at a
hard freeze. The FAA and the Coast Guard together requested an increase
of almost $600,000,000 in fiscal year 1999 outlays. Although reasonable,
this level of funding is simply not possible because of the firewalls,
resulting in a Committee bill approximately $250,000,000 below the
request for these safety-related agencies. Since the Subcommittee is
required to allocate all of its increased resources to firewalled
programs, these other agencies will continue to feel the budgetary
pressures.
The Committee has done the best it can considering the new firewalls.
However, the Committee is concerned that this new legislation skews
transportation priorities inappropriately, by providing a banquet of
increases to highway and transit spending while leaving safety-related
agencies such as the Coast Guard and FAA to scramble for the remaining
crumbs. In addition, high priority policy initiatives such as increased
funding for drug interdiction could not be fully funded without
offsetting cuts in Coast Guard spending because of the firewalls. The
Committee continues to believe that safety should remain the Federal
Government's highest responsibility in the transportation area. Were it
not for the firewalls, a portion of the generous 7.4 percent increase
could have been allocated to improvements in aviation or maritime
safety, and more could have been done to fight the menace of illegal
drug trafficking, while still providing significant increases in highway
and transit programs. The Committee has also been unable to consider
increases above the guaranteed levels for highways and transit programs,
because it would have required even further reductions in critical FAA
and Coast Guard programs.
TABULAR SUMMARY
A table summarizing the amounts provided for fiscal year 1998 and the
amounts recommended in the bill for fiscal year 1999 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 1999. These hearings are
contained in seven 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 1999 have been developed
after careful consideration of all the information available to the
Committee.
PROGRAM, PROJECT, AND ACTIVITY
During fiscal year 1999, 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 capital
investment grants, Federal Transit Administration. In addition, the
percentage reductions made pursuant to a sequestration order to funds
appropriated for facilities and equipment, Federal Aviation
Administration, and for acquisition, construction, and improvements,
Coast Guard, shall be applied equally to each ``budget item'' that is
listed under said accounts in the budget justifications submitted to the
House and Senate Committees on Appropriations as modified by subsequent
appropriations Acts and accompanying committee reports, conference
reports, or joint explanatory statements of the committee of conference.
SAFETY PROGRAMS
In this bill, the Committee has worked hard to protect funding for
essential safety-related programs of the Department of Transportation
and the independent agencies. This has been difficult, but not
impossible, given the budget constraints faced by the Federal Government
this year. In some cases, funds have been added to the administration's
request for safety-related activities. However, if, in the judgment of
departmental officials any of the Committee's recommendations would
significantly harm transportation safety, or if unanticipated safety
needs arise during the course of the appropriations process, the
Committee welcomes discussions with the administration to adjust
individual funding levels and provide the funding needed. The bill also
allows significant flexibility through the reprogramming process, which
requires no further legislative action. The Committee will work with
administration officials to reprogram funds for safety programs if that
should be required.
TITLE I--DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
SALARIES AND EXPENSES
Appropriation, fiscal year 1998\1\ $61,000,000
Budget estimate, fiscal year 1999 61,930,000
Recommended in the bill\2\ (57,979,900)
xlBill compared with:
Appropriation, fiscal year 1998 -3,020,100
Budget estimate, fiscal year 1999 -3,950,100
\1\Excludes reductions of $343,000 for TASC.
\2\Total amount appropriated in separate accounts.
The bill provides a total program level of $57,979,900 for the
salaries and expenses of the various offices comprising the Office of
the Secretary. This year, however, the Committee has not approved the
consolidated appropriations request for the various offices within the
office of the secretary. Specific program recommendations are discussed
in this report under the individual appropriations accounts.
Congressional justifications .--The Committee was displeased with
the untimely submission of the department's fiscal year 1999
congressional justifications. While other executive departments are able
to submit their congressional justifications concurrent with the
official submission of the President's budget to Congress, the
department has not been able to do the same. Therefore, the Committee
directs the department to submit all of the department's fiscal year
congressional justifications on the first Monday in February, concurrent
with the official submission of the President's budget to Congress.
Moreover, the department is directed to submit its fiscal year 2000
congressional justification materials for the salaries and expenses of
the office of the secretary at the same level of detail provided in the
congressional justifications presented in fiscal year 1994.
Staffing levels .--The offices comprising the offices of the
secretary are directed not to fill any positions in fiscal year 1998
that are currently vacant, particularly if such vacancies are proposed
in this Act for elimination in fiscal year 1999 and not to fill those
positions in 1998 unless the statement of managers accompanying the
conference report for this bill specifically references the individual
positions being restored.
The Committee has endeavored to eliminate various positions that the
department had indicated were vacant at the time the Committee was
finalizing its recommendations. It is the intent of the Committee to
avoid any reductions in force and the Committee intends to work with the
department as the final conference report is developed to avoid serious
personnel disruptions.
Travel .--The Committee directs that travel funds appropriated for
offices of the secretary shall not be supplemented with funds from other
elements of the department excluding those related to the use of
military aircraft.
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
1999 is 88 personnel, which is 19 below the ceiling enacted in fiscal
year 1998 and the same level as on board at the end of fiscal year 1997.
The Committee notes that the department had only 77 political and
presidential appointees on board this spring, and at no time since 1991
have such positions exceeded 100. The bill specifies that no political
or presidential appointee may be detailed outside the Department of
Transportation.
Advisory committees .--The Committee has continued bill language
that was included in past Department of Transportation and Related
Agencies Appropriations Acts which limit the funds used for advisory
committees of the Department of Transportation. The budget requested
that the limitation be deleted.
IMMEDIATE OFFICE OF THE SECRETARY
Appropriation, fiscal year 1998\1\ ($1,916,300)
Budget estimate, fiscal year 1999\2\ (1,988,800)
Recommended in the bill 1,623,800
xlBill compared with:
Appropriation, fiscal year 1998 -292,500
Budget estimate, fiscal year 1999 -365,000
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Immediate Office of the Secretary has the primary responsibility
to provide overall planning, direction, and control of departmental
affairs. The Committee recommends an appropriation of $1,623,800 for
expenses of the Immediate Office of the Secretary, which represents a
reduction of $292,500 from comparable levels provided for fiscal year
1998, and $365,000 below the budget request. The recommendation assumes
the following staffing and other reductions:
Eliminate 1 staff assistant -$100,000
Eliminate 1 deputy chief of staff -150,000
Disallow printing costs related to Garrett A. Morgan technology and transportation futures program -15,000
Reduction in travel costs -100,000
Eliminate various staff positions .--The Committee recommendation
assumes the elimination of one staff assistant position and one deputy
chief of staff. The Committee believes that these positions can be
eliminated without affecting the core responsibilities, duties and
functions of the department or the office of the secretary. In light of
other downsizing and staff reductions planned by the department and
recommended by the Committee, the office of the secretary should set the
example for the department.
Disallow printing costs related to Garrett A. Morgan technology and
transportation futures program .--The Committee has not provided $15,000
requested to print documents related to the Garrett A. Morgan program, a
program that seeks to encourage minority students to pursue
transportation careers. Funds for this activity are included within the
$200,000 provided to RSPA for the Garrett A. Morgan program in fiscal
year 1999.
Reduction in travel costs .--The Committee recommends that travel
expenses of the immediate office of the secretary be reduced by
$100,000. Travel expenses of this office have increased by almost 70
percent in one year, far in excess of the rate of inflation. Increases
in travel of this magnitude are not justified. The Committee
recommendation will provide a total of $160,000 for travel in fiscal
year 1999, the same level as approved by the Congress in fiscal year
1998. In light of other downsizing and staff reductions planned by the
department and recommended by the Committee, the office of the secretary
should set an example of economy for the department.
IMMEDIATE OFFICE OF THE DEPUTY SECRETARY
Appropriation, fiscal year 1998\1\ ($554,700)
Budget estimate, fiscal year 1999\2\ (595,900)
Recommended in the bill 585,000
xlBill compared with:
Appropriation, fiscal year 1998 +30,300
Budget estimate, fiscal year 1999 -10,900
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Immediate Office of the Deputy Secretary has the primary
responsibility to assist the Secretary in the overall planning,
direction and control of departmental affairs. The Committee recommends
an appropriation of $585,000 for expenses of the office of the deputy
secretary, which represents an increase of $30,300 from comparable
levels provided for fiscal year 1998, and $10,900 below the budget
request. The recommendation assumes a staffing level of 7 full time
equivalent positions and the following reduction:
Reduction in travel costs -$10,900
Reduction in travel costs .--The Committee recommends that travel
expenses of the immediate office of the deputy secretary be reduced by
$10,900. Travel expenses of this office have increased by over 130
percent since 1995 and almost 63 percent since 1996, far in excess of
the rate of inflation. This reduction will provide a total of $15,100
for travel in fiscal year 1999, the same level as provided in fiscal
year 1996. In light of other downsizing and staff reductions planned by
the department and recommended by the Committee, the immediate offices
of the secretary and deputy secretary should set the example of economy
for the department.
OFFICE OF THE GENERAL COUNSEL
Appropriation, fiscal year 1998\1\ ($8,745,800)
Budget estimate, fiscal year 1999\2\ (9,195,000)
Recommended in the bill 8,895,000
xlBill compared with:
Appropriation, fiscal year 1998 +149,200
Budget estimate, fiscal year 1999 -300,000
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Office of the General Counsel provides legal services to the
Office of the Secretary and coordinates and reviews the legal work of
the chief counsels' offices of the operating administrations.
The Committee recommends an appropriation of $8,895,000 for expenses
of the office of general counsel, which represents an increase of
$149,200 from comparable levels provided for fiscal year 1998, and
$300,000 below the budget request. The recommendation assumes the
elimination of 3 attorney advisors (-$300,000).
OFFICE OF THE ASSISTANT SECRETARY FOR POLICY
Appropriation, fiscal year 1998\1\ ($2,795,500)
Budget estimate, fiscal year 1999\2\ (2,767,200)
Recommended in the bill 2,667,200
xlBill compared with:
Appropriation, fiscal year 1998 -128,300
Budget estimate, fiscal year 1999 -100,000
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Assistant Secretary for Policy is the chief domestic policy
officer of the department and is responsible to the Secretary for
analysis, development, communication and review of policies and plans
for domestic transportation issues.
The Committee recommends an appropriation of $2,667,200 for expenses
of the office of the assistant secretary for policy, which represents a
reduction of $128,300 from comparable levels provided for fiscal year
1998, and $100,000 below the level requested in the budget. The
recommendation assumes the elimination of 2 policy analysts (-$100,000).
OFFICE OF THE ASSISTANT SECRETARY FOR AVIATION AND INTERNATIONAL AFFAIRS
Appropriation, fiscal year 1998\1\ ($7,554,300)
Budget estimate, fiscal year 1999\2\ (7,427,200)
Recommended in the bill 7,002,200
xlBill compared with:
Appropriation, fiscal year 1998 -552,100
Budget estimate, fiscal year 1999 -425,000
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Assistant Secretary for Aviation and International Affairs is
responsible for administering economic regulatory functions regarding
the airline industry and provides departmental leadership and
coordination on international transportation policy issues relating to
maritime, trade, technical assistance and cooperative programs.
The Committee recommends an appropriation of $7,002,200 for expenses
of the office of the assistant secretary for aviation and international
affairs, which represents a reduction of $552,100 from comparable levels
provided for fiscal year 1998, and $425,000 below the level requested in
the budget. The recommendation assumes the following staffing
reductions:
Eliminate 4 transportation industry analysts -$300,000
Eliminate 1 special assistant -125,000
OFFICE OF THE ASSISTANT SECRETARY FOR BUDGET AND PROGRAMS
Appropriation, fiscal year 1998\1\ ($6,119,800)
Budget estimate, fiscal year 1999\2\ (6,464,300)
Recommended in the bill 6,069,300
xlBill compared with:
Appropriation, fiscal year 1998 -50,500
Budget estimate, fiscal year 1999 -395,000
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Assistant Secretary for Budget and Programs is responsible for
developing, reviewing and presenting budget resource requirements for
the department to the Secretary, Congress and the Office of Management
and Budget.
The Committee recommends an appropriation of $6,069,300 for expenses
of the office of the assistant secretary for budget and programs, which
represents a decrease of $50,500 from comparable levels provided for
fiscal year 1998, and $395,000 below the budget request. The
recommendation assumes the following reductions:
Disallow increase in reception and representation costs -$20,000
Eliminate 1 staff accountant and 1 program analyst -175,000
General reduction due to budget constraints -200,000
Disallow increases in reception and representation costs .--The
Committee has not provided an increase of $20,000 for additional
reception and representation activities. This request has been rejected
for the past several years. In light of significant staffing reductions
and budget constraints, approving additional appropriations for
reception and representation cannot be justified.
OFFICE OF THE ASSISTANT SECRETARY FOR GOVERNMENTAL AFFAIRS
Appropriation, fiscal year 1998\1\ ($1,873,000)
Budget estimate, fiscal year 1999\2\ (1,940,600)
Recommended in the bill 1,672,000
xlBill compared with:
Appropriation, fiscal year 1998 -201,000
Budget estimate, fiscal year 1999 -268,600
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Office of the Assistant Secretary for Governmental Affairs is
responsible for coordinating all Congressional, intergovernmental, and
consumer activities of the department.
The Committee recommends an appropriation of $1,672,000 for this
office, which represents a decrease of $201,000 from the comparable 1998
level and a decrease of $268,600 from the budget request. The
recommendation assumes a staffing level of 22 full time equivalent
positions, one fewer than provided in fiscal year 1998 and requested in
the budget. The recommendation assumes the following reductions:
Eliminate deputy assistant secretary for governmental affairs -$150,000
General reduction due to budget constraints -100,000
Travel reductions -18,600
OFFICE OF THE ASSISTANT SECRETARY FOR ADMINISTRATION
Appropriation, fiscal year 1998\1\ ($20,137,200)
Budget estimate, fiscal year 1999\2\ (20,213,100)
Recommended in the bill 19,147,100
xlBill compared with:
Appropriation, fiscal year 1998 -990,100
Budget estimate, fiscal year 1999 -1,066,000
\1\Appropriated within the consolidated salaries and expenses account and includes reduction of $343,000 for TASC and carryover of $505,900.
\2\Requested in the consolidated salaries and expenses account.
The Office of the Assistant Secretary for Administration is
responsible for coordinating, overseeing and conducting various
accounting, procurement, personnel management, and ADP operations of the
department.
The Committee recommends an appropriation of $19,147,100 for expenses
of the office of the assistant secretary for administration, which
represents a reduction of $990,100 from comparable levels provided for
fiscal year 1998, and $1,066,000 below the budget request. The
recommendation assumes the following reductions:
Disallow increase in travel expenses -$16,000
Eliminate 3 positions (1 budget analyst, 1 program analyst, 1 procurement analyst) -300,000
Eliminate 10 procurement analysts from the office of acquisition -750,000
Eliminate 3 positions .--The Committee recommendation eliminates
three positions within the office of administration: 1 budget analyst, 1
program analyst, and 1 procurement analyst. These positions are
currently vacant and there does not appear to be any plan to fill them.
Eliminate 10 procurement analysts from the office of acquisition
.--The Committee recommendation reduces by 10 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 initiatives, 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.
OFFICE OF PUBLIC AFFAIRS
Appropriation, fiscal year 1998\1\ ($1,746,600)
Budget estimate, fiscal year 1999\2\ (1,752,600)
Recommended in the bill 1,377,600
xlBill compared with:
Appropriation, fiscal year 1998 -369,000
Budget estimate, fiscal year 1999 -375,000
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Office of Public Affairs is responsible for news releases,
articles, fact sheets, briefing materials, publications, and
audio-visual materials of the department.
The Committee recommends an appropriation of $1,377,600 for expenses
of the office of public affairs, which represents a reduction of
$369,000 from comparable levels provided for fiscal year 1998, and
$375,000 below the budget request. The recommendation assumes the
following reductions:
Eliminate public affairs associate director of speechwriting and research -$125,000
Eliminate 2 public affairs specialists -100,000
Eliminate special assistant to the associate director -125,000
Eliminate various positions .--The Committee recommends elimination
of four positions within the office of public affairs. In light of
budget constraints and other government downsizing, public affairs
operations not critical to the department can be reduced without
significantly affecting the core responsibilities of the office of the
secretary.
EXECUTIVE SECRETARIAT
Appropriation, fiscal year 1998\1\ ($1,088,500)
Budget estimate, fiscal year 1999\2\ (1,046,900)
Recommended in the bill 1,046,900
xlBill compared with:
Appropriation, fiscal year 1998 -41,600
Budget estimate, fiscal year 1999
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Executive Secretariat assists the Secretary and Deputy Secretary
in carrying out their management functions and responsibilities by
controlling and coordinating internal and external written materials.
The Committee recommends an appropriation of $1,046,900 for expenses
of the office of the executive secretariat, which represents a reduction
of $41,600 from comparable levels provided for fiscal year 1998, and the
same level as the budget request. The recommendation assumes a staffing
level of 15 full time equivalent (FTE) positions, the same level as the
budget request and a reduction of one FTE from fiscal year 1998.
BOARD OF CONTRACT APPEALS
Appropriation, fiscal year 1998\1\ ($480,700)
Budget estimate, fiscal year 1999\2\ (675,500)
Recommended in the bill 675,500
xlBill compared with:
Appropriation, fiscal year 1998 +194,800
Budget estimate, fiscal year 1999
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Board of Contract Appeals provides an independent forum for
considering all contract-related claims by or against a contractor
involving any element of the department.
The Committee recommends an appropriation of $675,500 for expenses of
the board of contract appeals, which represents an increase of $194,800
from comparable levels provided for fiscal year 1998, and the same level
as the budget request. The recommendation assumes a staffing level of 6
full time equivalent positions, the same level as in fiscal year 1998
and requested in the budget.
OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION
Appropriation, fiscal year 1998\1\ ($1,053,600)
Budget estimate, fiscal year 1999\2\ (909,200)
Recommended in the bill 839,200
xlBill compared with:
Appropriation, fiscal year 1998 -214,400
Budget estimate, fiscal year 1999 -70,000
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Office of Small and Disadvantaged Business Utilization is
responsible for promoting small and disadvantaged business participation
in the department's procurement and grants programs. The Committee
recommends an appropriation of $839,200 for expenses of the office of
small and disadvantaged business utilization, which represents a
reduction of $214,400 from comparable levels provided for fiscal year
1998, and $70,000 below the budget request. The recommendation assumes
the elimination of one financial analyst.
Small business procurements. --The Committee encourages the
department to increase small business procurement opportunities arising
from projects that involve federal funding. Outreach and assistance to
minority, women-owned and disadvantaged businesses should be promoted to
increase participation in the department's procurements. The Committee
recommends that a focused effort be made to increase the opportunity and
participation of small businesses in DOT-related procurements.
OFFICE OF INTELLIGENCE AND SECURITY
Appropriation, fiscal year 1998\1\ ($1,025,000)
Budget estimate, fiscal year 1999\2\ (1,036,100)
Recommended in the bill 961,100
xlBill compared with:
Appropriation, fiscal year 1998 -63,900
Budget estimate, fiscal year 1999 -75,000
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Office of Intelligence and Security was created during fiscal
year 1990 to address transportation intelligence and security issues.
The primary purposes of the office are to provide intelligence and
security oversight of the operating administrations to increase the
safety and security of the traveling public, and to provide the
Secretary and Deputy Secretary with current intelligence and security
information, with special emphasis on potential or actual terrorist
threats to transportation interests.
The Committee recommends an appropriation of $961,100 for expenses of
the office of intelligence and security, which represents a decrease of
$63,900 from comparable levels provided for fiscal year 1998, and
$75,000 below the level in the budget request. The recommendation
assumes elimination of one transportation security specialist.
OFFICE OF THE CHIEF INFORMATION OFFICER
Appropriation, fiscal year 1998\1\ ($4,777,700)
Budget estimate, fiscal year 1999\2\ (4,874,600)
Recommended in the bill 4,400,000
xlBill compared with:
Appropriation, fiscal year 1998 -377,700
Budget estimate, fiscal year 1999 -474,600
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
The Office of the Chief Information Officer serves as the principal
advisor to the Secretary on matters involving information resources and
information systems management, including responsibility over the
Federal Aviation Administration's Year 2000 compliance efforts.
The Committee recommends an appropriation of $4,400,000 for expenses
of the office of the chief information officer, which represents a
reduction of $377,700 from comparable levels provided for fiscal year
1998, and $474,600 below the budget request. The recommendation assumes
a staffing level of 14 full time equivalent positions, the same level as
provided in fiscal year 1998 and requested in the budget. The
recommendation includes $200,000 for tracking, renovation and validation
of the department's Year 2000 efforts and reductions in other services
due to outlay constraints (-$474,600).
OFFICE OF INTERMODALISM
Appropriation, fiscal year 1998\1\ ($1,294,200)
Budget estimate, fiscal year 1999\2\ (1,041,900)
Recommended in the bill 1,018,000
xlBill compared with:
Appropriation, fiscal year 1998 -276,200
Budget estimate, fiscal year 1999 -23,900
\1\Appropriated within the consolidated salaries and expenses account.
\2\Requested in the consolidated salaries and expenses account.
Congress mandated that an office of intermodalism be established
within the office of the secretary in Title V of the Intermodal Surface
Transportation Efficiency Act of 1991. As an organization within the
office of the secretary, the office works on intermodal initiatives
involving multiple operating administrations, and on special projects
assigned to, or by, the associate deputy secretary. Within the
department, the office works with operating administrations through a
partnership approach to problem solving. This approach ensures project
outcomes that are shaped by the policies, programs, and regulatory
interpretations of the operating administrations and the office of the
secretary.
The Committee has provided $1,018,000 for the office of
intermodalism, which represents a reduction of $276,200 from comparable
levels provided for fiscal year 1998 and $23,900 below the budget
request. The recommendation assumes a reduction of $23,900 in travel
expenses, which holds travel to the levels approved in fiscal year 1998.
The Committee notes that an excessive amount of travel to attend
overseas forums has occurred over the past year, despite numerous
vacancies within the office.
OFFICE OF CIVIL RIGHTS
Appropriation, fiscal year 1998\1\ $5,574,000
Budget estimate, fiscal year 1999 6,966,000
Recommended in the bill 6,966,000
xlBill compared with:
Appropriation, fiscal year 1998 +1,392,000
Budget estimate, fiscal year 1999
\1\Excludes reductions of $12,000 for 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 opportunity precepts in all of the
Department's official actions and programs. This office is responsible
for enforcing laws and regulations that 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 of $6,966,000 for expenses
of the office of civil rights, which represents an increase of
$1,392,000 from fiscal year 1998 enacted levels and the same level as
the budget request.
TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT
Appropriation, fiscal year 1998\1\ $4,400,000
Budget estimate, fiscal year 1999 4,710,000
Recommended in the bill 3,035,000
xlBill compared with:
Appropriation, fiscal year 1998 -1,365,000
Budget estimate, fiscal year 1999 -1,675,000
\1\Excludes reductions of $8,000 for TASC.
This appropriation finances those research activities and studies
concerned with planning, analysis, and information development needed to
support the Secretary's responsibilities in the formulation of national
transportation policies. The overall program is carried out primarily
through contracts with other federal agencies, educational institutions,
nonprofit research organizations, and private firms.
The Committee recommends $3,035,000 for this appropriation, which
represents a decrease of $1,675,000 below the request and $1,365,000
from the 1998 enacted level. Within the total provided, the recommended
level holds transportation planning and studies to $700,000; provides
the budget request of $1,935,000 for salaries and administrative
expenses; and holds transportation system planning to $400,000. These
levels will permit annualization and other pay-related costs for 15 FTE
and will fully fund all ongoing activities, and will provide nominal
increases for proposed studies and evaluations, albeit below the budget
estimate.
The recommended level also provides $400,000 for the department's
transportation system planning activities, which represents a decrease
of $462,000 from the 1998 enacted level and $770,000 below the budget
request. The recommended level defers funding for continued development
of the electronic grants system, automated coordination, and the FOIA
response system. A requirements analysis study for the FOIA response
system, including costs and benefits, has yet to be completed, and
therefore the need for such a system has not been quantified.
None of the funds provided under this appropriation shall be for
activities related to sustainable transportation.
Within the amounts provided for transportation planning, research and
development, the Committee has included sufficient resources to fund a
collaboration of industry, education, and government entities to develop
a skilled workforce for the transportation industry, provided that total
federal support for this activity not exceed $1,000,000 in total.
TRANSPORTATION ADMINISTRATIVE SERVICE CENTER
Appropriation, fiscal year 1998\1\ ($121,800,000)
Budget estimate, fiscal year 1999\2\ (175,715,000)
Recommended in the bill\3\ (109,124,000)
xlBill compared with:
Appropriation, fiscal year 1998 (-12,676,000)
Budget estimate, fiscal year 1999 (-66,591,000)
\1\In fiscal year 1998, the limitation on transportation administrative service center expenses was reduced by $3,000,000.
\2\Proposed without limitation. Amount reflected is the estimated program level for FY 1999.
\3\In fiscal year 1999, the limitation on transportation administrative service center expenses is also addressed in a general provision (-$20,000,000).
The transportation administrative service center 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 and the basis for them are presented to and
approved by the House and Senate Committees on Appropriations. These
limitations are continued in fiscal year 1999.
The Committee recommends a limitation of $109,124,000, a decrease of
$12,676,000 from the enacted level and $66,591,000 below the request.
The recommended reductions from the budget request reflect the following
adjustments:
Eliminate the transportation computer center -$15,000,000
Disallow proposed transfer of the National Oceanic and Atmospheric Administration's Office of Aeronautical Charting and Cartography to the TASC -51,591,000
Transportation computer center.-- The conference agreement
accompanying the fiscal year 1998 Department of Transportation and
Related Agencies Appropriations Act directed the department's Inspector
General to evaluate TASC's utility and cost effectiveness both to the
individual operating administrations and the department in general and
determine whether TASC is providing quality services that are responsive
to customer needs at competitive prices. The IG's audit concluded that
TASC generally provides services of utility to its users; however, the
audit also disclosed that several services raised substantive cost
effectiveness issues.
Specifically, the IG determined that the Computer Center is currently
capable of operating at only two-thirds of the level that OMB considers
cost effective. The IG report concluded that this lack of cost
effectiveness correlates closely with customer survey results indicating
that 75 percent of the Computer Center's users expressed dissatisfaction
with the cost competitiveness of the computer center.
The IG also obtained an evaluation report of the computer center
prepared by a DOT consultant. Based upon that report and its own audit,
the IG concluded that computer center does not have the customer base to
operate in a cost effective manner and noted that ``the justification
for continued operation of the computer center is in doubt.''
The Committee's recommendation eliminates the transportation computer
center within the transportation administrative service center and
permits the operating administrations to procure similar services from
other governmental or private providers.
Disallow proposed transfer of the National Oceanic and Atmospheric
Administration's Office of Aeronautical Charting and Cartography to the
TASC.-- The budget proposed that the National Oceanic and Atmospheric
Administration's Office of Aeronautical Charting and Cartography (AC&C)
be transferred from the Department of Commerce and placed within the
TASC. While the department believes that the AC&C product offerings are
closely aligned with the services provided by TASC, the Committee
asserts that the aeronautical charting services ultimately support
aviation safety missions within the FAA, and it is more logical that
these services be performed within the FAA. The Committee recommendation
includes funding for this activity within the FAA's appropriation for
fiscal year 1999. Accordingly, the TASC obligation limitation has been
reduced by $51,591,000 and staff reduced by 379 FTE.
General provision.-- The Committee has included a general provision
which provides that amounts budgeted for the transportation
administrative service center in this bill are reduced, on a pro-rata
basis, to a limitation of $89,124,000. The Committee believes that this
reduction is justified given the significant personnel reductions that
have occurred within the department over the past several years. For
example, the department projects that if staffing adjustments continue
at current rates through the end of fiscal year 1998, the 1998 civilian
full time equivalent (FTE) employment will be about 1,620, or two
percent, below the levels provided for in the fiscal year 1998
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.
The Committee is concerned, however, that previous reductions in
obligation authority have not been reflected in reduced billings to the
modal administrations. As such, over the past several years, TASC
charges have not been reduced to correspond to Congressional reductions
and each year the modal administrations have had to absorb sizable
shortfalls in TASC funding. The Committee directs the administrator of
the TASC to develop a mechanism to ensure that the budget approved for
the TASC in this Act corresponds to the appropriations provided to the
modes in this Act. In allocating the reductions recommended in this Act
for the TASC, the administrator of the TASC shall not reduce funding
provided to the modes for the transportation computer center, as these
services are to be acquired from other sources in fiscal year 1999.
PAYMENTS TO AIR CARRIERS
(AIRPORT AND AIRWAY TRUST FUND)
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.
Consistent with this legislation, this program became 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 seventy highway
miles from the nearest large or medium hub airport, or that require a
subsidy in excess of $200 per passenger, unless such point is more than
210 miles from the nearest large or medium airport.
MINORITY BUSINESS RESOURCE CENTER PROGRAM
Appropriation Limitation on direct loans
Appropriation, fiscal year 1998 $1,900,000 ($15,000,000)
Budget estimate, fiscal year 1999 1,900,000 (13,775,000)
Recommended in the bill 1,900,000 (13,775,000)
xlBill compared to:
Appropriation, fiscal year 1998 (-1,225,000)
Budget estimate, fiscal year 1999
The minority business resource center of the Office of Small
Disadvantaged Business Utilization provides assistance in obtaining
short-term working capital and bonding for disadvantaged, minority, and
women-owned businesses. The program enables qualified businesses to
obtain loans at prime interest rates for transportation-related
projects.
Prior to fiscal year 1993, loans under this program were funded by
the Office of Small and Disadvantaged Business Utilization without a
limitation. Reflecting the changes made by the Credit Reform Act of
1990, beginning in fiscal year 1993, a separate appropriation was
proposed in the President's budget only for the subsidy inherently
assumed in those loans and the cost to administer the loan program.
The recommendation fully funds the budget request, which provides a
limitation on direct loans of $13,775,000 and subsidy and administrative
costs totaling $1,900,000.
MINORITY BUSINESS OUTREACH
Appropriation, fiscal year 1998 $2,900,000
Budget estimate, fiscal year 1999 2,900,000
Recommended in the bill 2,900,000
xlBill compared with:
Appropriation, fiscal year 1998
Budget estimate, fiscal year 1999
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 serves DOT-wide
goals and not just OST purposes. The Committee has provided $2,900,000,
the same level as provided in fiscal year 1998 and included in the
budget request.
AMTRAK REFORM COUNCIL
Appropriation, fiscal year 1998 $2,450,000
Budget estimate, fiscal year 1999
Recommended in the bill 450,000
xlBill compared with:
Appropriation, fiscal year 1998 -2,000,000
Budget estimate, fiscal year 1999 +450,000
The Amtrak Reform and Accountability Act of 1997 (P.L. 105 134)
established the Amtrak Reform Council. This Act assigned the following
tasks to the Council: (1) evaluate Amtrak's performance and make
recommendations to Amtrak for achieving further cost containment,
productivity improvements, and financial reforms; (2) monitor work-rule
savings; and (3) develop an action plan for a ``restructured and
revitalized national intercity passenger rail system'' if the Council
determines, any time after December 1999, that Amtrak is not achieving
its financial goals or that it would require an operating subsidy after
December 2002.
The Committee has provided $450,000 for the Amtrak Reform Council in
fiscal year 1999. This funding coupled with $80,000 provided under the
Emergency Supplemental Appropriations Act of 1998 shall be sufficient
for the Council to begin its review of Amtrak's financial condition. The
Committee believes that the Council will work closely with the
Department of Transportation's Inspector General (IG) to fulfill its
duties. The IG has recently awarded a contract for an independent
assessment of Amtrak's financial needs through the year 2002. This work
will be completed in November 1999. Thereafter, the IG will be
reassessing, on a yearly basis, Amtrak's financial needs. Therefore,
much of the information the Council will need to evaluate Amtrak's
financial performance and to make its recommendations should be
available from the IG.
COAST GUARD
SUMMARY OF FISCAL YEAR 1999 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
$3,887,000,000 for activities of the Coast Guard in fiscal year 1999.
This is $29,446,000 less than the fiscal year 1998 program
level--essentially a hard freeze.
The following table summarizes the fiscal year 1998 program levels,
the fiscal year 1999 program requests, and the Committee's
recommendations:
Program Fiscal year--
Operating expenses\1\\2\ $2,715,400,000 $2,771,705,000 $2,700,000,000
Acquisition, construction and improvements\3\ 388,850,000 442,773,000 389,000,000
Environmental compliance and restoration 21,000,000 21,000,000 21,000,000
Alteration of bridges 17,000,000 12,000,000
Retired pay\4\ 653,196,000 684,000,000 684,000,000
Reserve training 67,000,000 67,000,000 69,000,000
Research, development, test and evaluation 19,000,000 18,300,000 12,000,000
Boat safety\5\ 35,000,000
---------------- ---------------- -----------------
Total 3,916,446,000 4,004,778,000 3,887,000,000
\1\Fiscal year 1998 amount includes $300,000,000 specifically for defense-related activities and scored against budget function 050 (defense); fiscal year 1999 estimated amount includes $309,000,000 (and the recommendation includes $300,000,000) specifically for national security activities of the Coast Guard and scored against budget function 050 (defense).
\2\Fiscal year 1998 total includes $1,600,000 in supplemental appropriations from Public Law 105-18 related to TWA 800 disaster recovery expenses and excludes reductions of $529,000 for TASC.
\3\Fiscal year 1999 estimated amount includes $35,000,000 in new user fees.
\4\Fiscal year 1998 total includes $9,200,000 provided in supplemental appropriations from Public Law 105 18.
\5\Fiscal year 1999 estimate includes $35,000,000 proposed in mandatory spending.
COUNTER-DRUG INITIATIVE
The Committee believes that a much more aggressive effort is needed
to fight the war on drugs, and that the current response of the
administration is inadequate. The Coast Guard plays a critical role in
defending the nation against the threat of illegal drugs, by patrolling
maritime lanes of supply in the air and on the sea, and by interdicting
drug smugglers in the transit zone. The Committee notes that the fiscal
year 1999 budget request would provide essentially the same level of
funding as provided in fiscal year 1998--a level which would, according
to the Coast Guard, result in 14 percent less cocaine seized, and 25
percent less cutter hours, than experienced in fiscal year 1997. In a
Subcommittee hearing this year, the Commandant of the Coast Guard
described actions taken by the service in fiscal year 1997 to intensify
their counter-drug activities:
Some of it . . . I took away from fisheries, to
demonstrate that we could get a lot of bang for the buck with
this investment, and I think our statistics demonstrated that.
I think we had a 1,000 percent increase in some of our
performance figures, 300 percent in others. We have seized
more drugs than we ever seized before. I feel we had a
dramatic impact on the welfare and safety of the people of
Puerto Rico and the Virgin Islands, as an example. I actually
honestly believed that this year would be the second year, and
I would be funded, and the administration would ask for me to
continue those programs, and I wasn't. And so I am
disappointed in that . . .
The Committee wants to see more illegal drugs seized, not less, and
is willing to rearrange service priorities to make it happen. Therefore,
the bill provides an increase, above the budget request, of $73,800,000
for Coast Guard counter-drug activities. This raises operations funding
for counter-drug activities to $406,091,000 in fiscal year 1999, an
increase of $33,800,000 (9.1 percent) above the fiscal year 1998 level.
The bill also includes an additional $40,000,000 in AC&I for
high-priority counter-drug acquisitions. These items and activities are
listed below.
Operating expense increases.-- The increase of $33,800,000 is
intended for the following items and activities:
Increase HH 65 patrol hours $2,100,000
Increase C 130 patrol hours 830,000
Increase WPB patrol hours 7,478,000
Increase international law enforcement training 1,100,000
PC 170 O&M 2,885,000
Reactivate 2 T AGOS vessels 6,166,000
Maintain 7 WPBs in fleet 4,508,000
Drug detection sensors 1,000,000
Activate 3 HU 25 falcon jets 4,607,000
Increase intelligence collection support 948,000
Caribbean support tender 2,178,000
-------------
Total 33,800,000
Acquisition, construction, and improvements (AC&I) increases.-- The
increase of $40,000,000 is intended for the following items and
activities:
Reactivate 2 T AGOS vessels $9,900,000
HU 25 jet engine overhaul 9,100,000
Sensors, cutter or jet 9,000,000
Low signature aircraft 2,000,000
Barracuda coastal patrol boats 10,000,000
-------------
Total 40,000,000
Given the tight discretionary caps this year, the Committee is unable
to provide resources above the overall Coast Guard budget request
without unacceptably harming the programs of other DOT agencies.
Furthermore, the Committee believes these resources can be accommodated
through a reprioritization of existing missions and programs, much as
they were in fiscal year 1997. Therefore, the counter-drug operating
activities are offset by reductions in two areas: fisheries enforcement
(-$13.8 million) and polar icebreaking (-$20 million). Several
lower-priority capital programs have been likewise reduced to
accommodate the stronger focus on counter-drug activities. This reflects
the Committee's view that counter-drug operations should receive a
higher priority relative to other mission areas.
The Commandant testified this year ``in my personal opinion, drug law
enforcement has a higher national security priority than fisheries
enforcement''. Therefore, it seems inconsistent that the
administration's request would allocate 17 percent of the Coast Guard
operating budget to fisheries enforcement and 13 percent to drug
interdiction. In total, the budget requests $115,775,000 more for
fisheries law enforcement than for drug interdiction. The Committee
recommendation redirects 4 percent of the fisheries budget, and reduces
polar icebreaking significantly, to fund increased counter-drug
activities. In fiscal year 1997, the Coast Guard was only reimbursed 12
percent of their costs for the polar icebreaking program, even though
the program provides benefits largely to non-DOT agencies and research
institutions. In fiscal year 1999, the Coast Guard plans to commission a
new polar icebreaker, which will add $10,500,000 in operating costs--but
only $4,000,000 is expected to be reimbursed by users. In order to
finance the increased effort in the war on drugs, the Committee
recommendation reduces direct Coast Guard funding for polar icebreaking
from $36,971,000 to $16,971,000, and assumes that the service can
maintain current service levels to the extent that the primary
beneficiaries of the program agree to pay those costs on a reimbursable
basis.
OPERATING EXPENSES
Appropriation, fiscal year 1998\1\ $2,715,400,000
Budget estimate, fiscal year 1999\2\ 2,771,705,000
Recommended in the bill\1\ 2,700,000,000
xlBill compared with:
Appropriation, fiscal year 1998 -15,400,000
Budget estimate, fiscal year 1999 -71,705,000
\1\Includes $300,000,000 in funds for national security activities included in this bill and excludes reductions of $529,000 for TASC.
\2\Includes $309,000,000 in funds for national security activities included in this bill.
Including $300,000,000 for national security activities, the
Committee recommends a total of $2,700,000,000 for operating activities
of the Coast Guard in fiscal year 1999, a decrease of $15,400,000 (less
than one percent) below the fiscal year 1998 appropriation and
$71,705,000 (2.6 percent) below the budget request. The following table
compares the fiscal year 1998 enacted level, the fiscal year 1999
estimate, and the recommended level by program, project and activity:
[In thousands of dollars]
Budget activity Fiscal year--
1998 enacted 1999 estimate 1999 recommended
I. Personnel Resources $1,702,298 $1,762,471 $1,728,260
II. Operating Funds and Unit Level Maintenance 617,467 619,593 618,145
C. District commands
1. 1st district (Boston) 37,711 36,831 36,831
2. 7th district (Miami) 46,400 47,532 47,532
3. 8th district (New Orleans) 29,894 30,044 30,044
4. 9th district (Cleveland) 18,205 18,583 18,583
5. 13th district (Seattle) 13,749 13,887 13,887
6. 14th district (Honolulu) 9,838 10,655 10,655
7. 17th district (Juneau) 20,693 10,805 10,805
III. Intermediate and Depot-Level Maintenance 395,106 389,641 389,641
IV. Account-wide Adjustments -36,046
---------------- --------------- ------------------
Total appropriation \3\2,714,871 2,771,705 2,700,000
Unobligated balance available 1,048
Offsetting collections (cash) 111,798 113,306 113,306
---------------- --------------- ------------------
Total budget authority available 2,827,717 2,885,011 2,813,306
\1\Includes operating funds for Coast Guard Academy and Training Centers as well as general funds for professional training and education.
\2\Includes ammunition and small arms (AFC 54) and Chief of Staff funds (AFC 40).
\3\Includes reduction of $529,000 to appropriated level.
COMMITTEE RECOMMENDATION
The recommended reduction from the budget estimate includes the
following adjustments:
Amount
Eliminate 79 new officer billets -$5,736,000
Do not restore slow hiring reduction of FY 1998 -15,000,000
Hold PCS reassignment moves to FY 1997 level -1,370,000
Defer college fund recruiting initiative pending authorization -545,000
Reduce growth in military pay and allowances -10,000,000
Eliminate GSA rent increase at OSC Martinsburg -1,448,000
Eliminate new DOT initiatives -498,000
Selected reductions in headquarters staffing -1,000,000
Non-pay COLA adjustment -10,000,000
Non-operational travel -2,500,000
Advisory and assistance services -2,000,000
Capitalizable projects (transfer to AC&I) -8,000,000
Raise fee rates for existing user fees and reimbursements -3,500,000
WLB primary crew assembly facility (transfer to AC&I) -548,000
Eliminate seven overseas liaison billets -560,000
Reduced OPTEMPO for national defense activities (050 reduction) -9,000,000
-71,705,000
COUNTER-DRUG INITIATIVE
The Committee recommends $406,091,000 for operating expenses of the
Coast Guard dedicated to counter-drug operations. This is $39,963,000
(10.9 percent) above the fiscal year 1998 estimated level and
$33,800,000 (9.1 percent) above the budget estimate. As was discussed in
an earlier section of this report, the Committee believes that an
expanded Coast Guard role is needed in the drug interdiction area, even
if it comes at the expense of lower priority mission areas. The
Committee notes that the Coast Guard expanded its drug interdiction work
significantly in fiscal year 1997 through the reprioritization of
activities and missions, and the results were highly successful. Not
only did the gross amount of seized drugs go up, but the Coast Guard's
efficiency statistics improved significantly also. By contrast, the
President's budget for fiscal year 1999 would redirect those resources
back into other activities, which would, according to the Coast Guard,
result in a drop in counter-drug cutter operating hours of 25 percent
and an estimated 14 percent drop in the amount of cocaine seized. The
Committee believes these additional funds are critical to sustaining,
and even improving upon, the successes achieved in fiscal year 1997. In
addition, the bill increases by $2,000,000 the Coast Guard Reserve
appropriation, partially in recognition of the important work of the
reserves in the drug interdiction arena. Specific activities funded with
this increase are explained below.
Increase HH 65 and C 130 patrol hours. --These increases were
originally requested by the Coast Guard, and certified by the Office of
National Drug Control Policy, but not included in the President's
budget. The Committee believes it important to increase surveillance
patrol hours. (+$2,930,000).
Patrol boat-related activities. --The Committee bill adds funds to
increase the operational hours of patrol boats performing drug
interdiction missions (+$7,478,000), maintain seven patrol boats
currently in service which would otherwise be decommissioned
(+$4,508,000), and take into the service, for the specific purpose of
enhancing counter-drug operations, a PC 170 (``Cyclone'' class) vessel
currently under control of DOD's Special Operations Command. The
Committee understands that the Coast Guard has been evaluating this
vessel for such operations, and believes it has high utility for their
drug interdiction activities. Hull fourteen is available and the bill
assumes the Coast Guard will work out an arrangement with the DOD for
the Coast Guard to operate and maintain this vessel specifically for
counter-drug work.
Increase international law enforcement training. --This increase was
originally requested by the Coast Guard, and certified by the Office of
National Drug Control Policy, but not included in the President's
budget. The Committee believes it important to increase such training.
(+$1,100,000).
Support vessels. --The Committee bill provides funds for the Coast
Guard to reactivate two T AGOS ocean surveillance vessels to serve as
afloat command and control and support ships for other surface vessels
in the Caribbean (and possibly Pacific) area of operations. This will
free up other, large Coast Guard vessels (such as 378-foot and 270-foot
cutters) for more effective counter-drug activities. The bill also
provides an additional $2,178,000 for the Caribbean support tender
included in the budget request at a lower funding level. This vessel is
designed to provide training support and other assistance to Caribbean
nations which are often used as trans-shipment points for illegal drugs.
For example, the Coast Guard has recently transferred to some of these
nations decommissioned patrol boats. However, without training
assistance, these small island nations are incapable of using the assets
to their maximum effectiveness. The support tender will provide such
assistance.
Activate HU 25 (``Falcon'') jets. --The Committee bill provides
$4,607,000 for the Coast Guard to recommission three HU 25 jets which
have been mothballed due to budget constraints. Additional funds are
included under AC&I for engine overhauls of these aircraft.
Drug detection sensors. --The bill includes $1,000,000 for
additional portable drug detection sensors. The Coast Guard currently
has 50 such sensors and has found them extremely valuable in
counter-drug operations. The bill would provide for the procurement of
approximately 10 more of such systems. The Coast Guard should explore
all available systems currently on the market, and procure those which
best satisfy their requirements.
Intelligence support. --The bill provides an additional $948,000 for
the Coast Guard to increase its intelligence collection efforts related
to counter-drug operations.
Activities Guyaquil and Esmeraldas, Ecuador. --Of the funds provided
in this account, $500,000 is specifically to augment and build up Coast
Guard and port control activities in Guyaquil and Esmeraldas, Ecuador.
PERSONNEL RESOURCES
The bill includes $1,728,260,000 for pay and allowances of Coast
Guard military and civilian personnel, a reduction of $34,211,000 from
the budget estimate and $25,962,000 (2.1 percent) above the fiscal year
1998 enacted level. Within the amount provided, the bill includes all
funds requested for special pays for military personnel.
Eliminate 79 new officer billets. --Given the high
officer-to-enlisted ratio in the Coast Guard relative to the other
military services, the Committee does not accept the need to expand the
officer corps, as requested in the budget. The Committee recommendation
eliminates the additional 79 officer billets, resulting in a reduction
of $5,736,000.
Restoration of FTE savings from fiscal year 1998. --The Committee
recommendation deletes the requested restoration of $15,000,000 from
staffyear reductions made in fiscal year 1998. The Committee is not
convinced, after reviewing actual and projected recruiting data, that
the service will be able to meet its recruiting target, given the strong
national economy. Therefore, these savings are maintained in the fiscal
year 1999 bill.
College fund recruiting initiative. --The Committee recommendation
deletes the new college fund recruiting initiative pending Congressional
authorization and stronger program justification. This results in a
savings of $545,000.
Reductions in headquarters staffing. --The recommendation assumes
reductions in certain headquarters offices, based on a review of current
staffing levels. These offices include the office of the commandant and
vice commandant, public affairs, Congressional affairs, general counsel,
and the office of bridge administration. These five offices are budgeted
for a total of 191 positions in fiscal year 1999. The reduction of
$1,000,000 would require the elimination of approximately 12 of these
positions, or six percent. The Coast Guard should review the staffing in
these offices and decide which low priority positions should be
eliminated.
PCS reassignment moves. --The bill holds funding for permanent
change of station (PCS) reassignment moves to the fiscal year 1997 level
of $9,761,000, a reduction of $1,370,000 from the budget estimate. Given
downsizing, streamlining, and other personnel reductions in the bill,
the Committee believes the service will be able to manage a slightly
lower level of accessions and reassignments. This does not affect
funding for other PCS move categories.
Elimination of seven overseas billets.-- The Committee believes the
Coast Guard should eliminate seven overseas liaison positions, given the
high cost of maintaining staff overseas and overall budget constraints.
These positions are as follows:
Royal Australian Navy liaison (Australia) (1)
Maritime Liaison Commander, Middle East Forces (Bahrain) (2)
Royal Canadian Air Force liaison (Canada) (2)
International Maritime Organization liaison (Curacao) (1)
Harbor Defense liaison (Korea) (1)
This results in a reduction to the budget estimate of $560,000.
Additional reduction.-- The Committee recommends an additional
reduction of $10,000,000 to military pay and benefits to bring the
overall amount provided to $1,261,110,000, a 1.2 percent increase over
fiscal year 1998. The reduction is due to budget constraints. The
Committee also acknowledges the increase in cost per FTE staffyear in
fiscal year 1998, and assumes that the Coast Guard will be able to
manage its personnel budget at a slightly lower cost per FTE during
fiscal year 1999 than assumed in the President's budget request.
OPERATING FUNDS AND UNIT LEVEL MAINTENANCE
The bill includes $618,145,000 for Coast Guard non-personnel
operating funds for field and headquarters facilities and units as well
as unit-level maintenance. This is $1,448,000 (0.2 percent) below the
administration's request and $678,000 (0.1 percent) above the level
provided for fiscal year 1998.
Ballast water management program.-- Of the funds provided in this
appropriation, $3,000,000 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).
Mackinaw. --The bill includes the $6,291,000 in requested funding
for continued operation and maintenance of the icebreaking cutter
Mackinaw during fiscal year 1999. This is 12.1 percent above the
$5,609,000 estimated for fiscal year 1998.
GSA rent increase, operations support center. --The bill does not
include the requested increase of $1,448,000 for additional GSA rental
costs at the Coast Guard Operational Support Center in Martinsburg, West
Virginia. The service has not adequately explained whether such
large-scale consolidation of support activities has been determined to
be cost-beneficial at this particular location.
Frying Pan Shoals lighthouse.-- The Committee recognizes that the
Frying Pan Shoals Lighthouse, operated by the U.S. Coast Guard off the
coast of North Carolina, can be a valuable asset to marine science and
to the short- and long-term monitoring of critical oceanographic,
meteorological, and biological research in the coastal waters of the
southeastern United States. The Committee urges that the use of this
facility be provided to the University of North Carolina at Wilmington
for these purposes.
Marine safety detachment .--The Committee is concerned about the
Coast Guard's planned closure of the marine safety detachment in
Concord, California and its impact on the protection of the local marine
environment from significant oil and chemical traffic and on timely and
efficient response to oil and chemical accidents in the sensitive and
busy waterways of the Carquinez Strait and other Bay and Delta
waterways. The Committee directs that the Coast Guard shall not obligate
any funds to begin the closure or termination of this unit until: (1)
the Coast Guard enters into discussions with Contra Costa County
officials concerning the impact of the closure; (2) the Coast Guard
submits a report to the House and Senate Committees on Appropriations
that explains how the Coast Guard will assure the timely and efficient
response to oil and chemical accidents in the area and continue to
perform other critical oversight functions concerning oil and chemical
traffic in these waterways; and (3) the Committees have had thirty
legislative days to review the Coast Guard report.
DEPOT LEVEL MAINTENANCE
The Committee recommends $389,641,000 for depot level maintenance for
shore facilities, electronic equipment, cutters, boats and aircraft, the
same as the budget estimate and $5,465,000 (1.4 percent) below the
enacted level for fiscal year 1998.
ACCOUNT-WIDE ADJUSTMENTS
The Committee recommends $36,046,000 in account-wide adjustments,
which are explained more fully below.
Departmental initiatives. --The bill does not include funds for new
departmental initiatives including the electronic grants pilot project,
acquisition training, and GSA common space rent, due to lack of
justification. This is similar to recommendations made in other parts of
the bill, and results in a savings of $498,000.
Non-pay inflation adjustment. --The Committee recommendation
provides the Coast Guard with the same non-salary inflation adjustment
provided to other agencies within DOT. The President's budget requested
an increase of 1.7 percent compared to 0.9 percent for other agencies.
This results in a reduction of $10,000,000.
Non-operational travel. --Notwithstanding Congressional reductions
in fiscal year 1997 which were designed to contain the travel budget,
the Coast Guard testified this year that ``despite these actions, it
does not appear that non-operational travel was reduced''. The Committee
reiterates that these travel costs should be going down, not up, and
recommends a reduction of $2,500,000.
Advisory and assistance services. --The recommended reduction of
$2,000,000 is due to budget constraints and lack of justification. The
recommended level is $9,779,000, which compares to $11,779,000 in the
budget estimate and $4,151,000 experienced for fiscal year 1997. A
similar reduction has been made in the FAA's operating account.
Capitalizable projects. --The Committee recommendation reflects a
recent report of the Office of Inspector General, which concluded that
many Coast Guard construction projects were improperly using operating
expenses (OE) funds instead of acquisition, construction, and
improvement (AC&I) funds. The recommendation transfers $8,000,000 to the
AC&I appropriation to more appropriately reflect the nature of the work
being performed.
Fee rates for existing user fees. --While the Committee does not
support the imposition of new user fees for Coast Guard services, Coast
Guard documents indicate that the service is not charging enough in its
existing fees to recover the direct cost of providing the service. The
Committee believes that when a decision is made to charge fees, it is
reasonable for the agency to recover the full cost of providing the
service. The recommendation assumes the Coast Guard will raise existing
fee rates by approximately 15 percent, to cover a larger percentage of
total cost. This results in a reduction to the budget estimate of
$3,500,000.
WLB primary crew assembly facility.-- The recommendation transfers
$548,000 from ``Operating expenses'' to ``Acquisition, construction, and
improvements'' to more appropriately reflect the nature of the work
being performed. The Coast Guard advised the Committee that an error had
been made in preparation of the budget, and that this facility should be
funded in the AC&I appropriation.
Reduced operating tempo for national security activities (050
reduction).-- The Committee recommendation provides $300,000,000 for
national security activities of the Coast Guard, which are scored under
budget function 050 (national defense). This is the same amount as
enacted for fiscal year 1998, and a reduction of $9,000,000 from the
budget estimate. The Coast Guard has not adequately explained what
additional defense activities would be performed with their requested
increase, and in any event the Committee's allocation under budget
function 050 is limited to the level provided for fiscal year 1998. The
Committee assumes the Coast Guard will make a slight adjustment in the
operating tempo for defense activities to live within this funding
level.
BILL LANGUAGE
Defense-related activities.-- The bill specifies that $300,000,000
of the total amount provided is for defense-related activities, the same
as enacted for fiscal year 1998, but $9,000,000 below the budget
estimate.
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.
User fees.-- The Committee does not approve the proposed bill
language which would allow the Commandant to promulgate virtually any
new maritime user fee, circumventing the normal process by Congressional
direction, and credit those fees to the capital account. First, the fee
proposal is so weakly justified that the Committee has been unable to
give the proposal serious consideration. For example, when the Committee
questioned the Commandant this year about the proposal, he stated ``we
just started our study . . . we are not in it deeply enough to know that
that is proper to do''. When asked how the Coast Guard arrived at the
specific request of $35,000,000 in new fees, the Commandant said ``I
have no idea how they did that''.
The Congressional Budget Office is so skeptical, they are unwilling
to assume the collection of any such receipts next year, despite the
proposed language. Clearly, with so little information, these fees--and
the appropriations to be financed with them--are unsustainable.
The Committee is concerned that, despite the lack of justification,
the Coast Guard believes it has the authority to promulgate these fees
under the general authority of the User Fee Statute. Therefore, the bill
includes a provision which precludes the Coast Guard from using funds to
plan, finalize, or implement any new user fees unless legislation signed
into law after the date of enactment of this Act specifically authorizes
them.
GENERAL PROVISIONS
Vessel traffic safety fairway, Santa Barbara/San Francisco.-- The
bill continues as a general provision (sec. 312) 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.
Blue-ribbon panel on the future of the Coast Guard. --The Committee
is very concerned about the Coast Guard's ability to address all of its
missions adequately in future years, given budget constraints and the
effect of surface transportation firewalls. Although the service has
performed admirably over the past four years in reforming and
reorganizing itself into a more efficient organization, it is possible
that there will still be insufficient funding over the next ten years to
enable the Coast Guard to maintain today's level of service. The Coast
Guard's operating budget has been flat for the past several years, and
block obsolescence of major capital assets is approaching. Last year,
the Commandant advised the Subcommittee that the Coast Guard would soon
require a capital appropriation of $1,000,000,000 per year for ten
years. Today, the Coast Guard's capital budget is approximately
$400,000,000.
To address these concerns, the Committee bill includes $1,000,000
specifically for establishment of a blue-ribbon panel to study the
future capital needs, roles, and missions of the Coast Guard. This panel
should be coordinated through the auspices of the office of the
secretary of transportation, and should include the current Commandant
of the Coast Guard, former commandants, and representatives of the U.S.
General Accounting Office, the DOT Office of Inspector General and
appropriate maritime organizations. The study should address and make
recommendations on the best roles and missions for the Coast Guard over
the next twenty years, and the capital budget requirements to meet those
needs, considering likely budget constraints over that period. The
Committee intends that this take the place of the currently-planned
Presidential Advisory Council, which would study Coast Guard roles and
missions, but at a much higher cost. The study should be submitted to
the Congress not later than January 2001.
Animal fats and vegetable oils. --The Committee bill includes a
general provision (sec. 340) which requires the Secretary of
Transportation, not later than March 31, 1999, to promulgate a
regulation consistent with the Edible Oil Regulatory Reform Act (Public
Law 104 55), enacted on November 20, 1995, to specifically address
facilities which handle animal fats and vegetable oils by amending 33
C.F.R. part 154, which relates to response plans for marine
transportation-related facilities. To be consistent, a rule for animal
fats and vegetable oils should include, at a minimum, separate
definitions, a separate category from other oils, and provide
requirements that are specific to and appropriate for animal fats and
vegetable oils. On March 14, 1997, the animal fats and vegetable oils
industry submitted to the Coast Guard a proposal consistent with these
requirements.
ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS
Appropriation, fiscal year 1998 $388,850,000
Budget estimate, fiscal year 1999\1\ 442,773,000
Recommended in the bill 389,000,000
xlBill compared with:
Appropriation, fiscal year 1998 +150,000
Budget estimate, fiscal year 1999 -53,773,000
\1\Includes $35,000,000 to be derived from new user fees.
The bill includes $389,000,000 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 1998 enacted level, the
fiscal year 1999 estimate, and the recommended level by program, project
and activity:
Offset Folios 31 to 32 Insert Here
Vessels
The Committee recommends $227,913,000 for vessels, a reduction of
$15,813,000 below the amount provided for fiscal year 1998 and
$41,660,000 below the administration's request. Specific adjustments to
the budget estimate are explained below.
Seagoing buoy tender (WLB) replacement.-- The Committee recommends
$81,790,000 for this program, instead of $105,000,000 included in the
budget estimate. Funding of $41,000,000 was provided for this program in
fiscal year 1998. The recommendation transfers $548,000 from ``Operating
expenses'' for the primary crew assembly facility and deletes the
$1,500,000 for each of the first three vessels of this class. It is not
clear to the Committee why additional acquisition funding is needed,
since these vessels are fully operational. The additional reduction is
due to budget constraints. The Committee expects the Coast Guard to
provide the Committee with updated information on the cost profile for
the vessels to be acquired under the full production contract prior to
conference deliberations on this bill.
Coastal buoy tender (WLM) replacement.-- The Committee recommends
$27,000,000 for the coastal buoy tender program, a reduction of
$4,000,000 below the budget estimate. The reduction is due to budget
constraints.
Buoy boat, stern loading (BUSL).-- The Committee recommends
$7,073,000 for this project, a reduction of $4,700,000 below the budget
estimate. The reduction is due to budget constraints.
Surface search radar.-- The Coast Guard budget includes $12,900,000
for this project in fiscal year 1999 and projects $4,000,000 in the year
2000. The Committee believes it more appropriate to phase this
acquisition more smoothly over the two remaining years of the program.
The Committee's recommended funding level of $8,450,000 would eliminate
the funding ``spike'' represented by the President's budget estimate.
This results in a reduction of $4,450,000 from the budget estimate.
Polar class icebreaker reliability improvement project.-- According
to the Coast Guard, this project is approximately six years behind its
original schedule. Given the schedule slip, the apparently low priority
of the program within the Coast Guard, and the Committee recommendation
to reduce operating funds for the polar icebreaker class, the Committee
recommends that this project be ended. This will save approximately
$25,000,000 in future fiscal years, which can be applied to other,
higher priority projects. This results in a fiscal year 1999 savings of
$6,100,000.
Coastal patrol boat.-- The Committee recommends $47,600,000 for the
``Barracuda'' class coastal patrol boat. This compares to $63,000,000
enacted in fiscal year 1998 and $37,600,000 in the budget estimate. The
additional $10,000,000 is part of the Committee's counter-drug
initiative, as explained in a previous section of this report.
Mackinaw replacement.-- The recommendation includes $6,000,000 to
continue design work for a replacement for the icebreaking cutter
``Mackinaw''. Funding of $2,000,000 was provided in fiscal year 1998.
Although the President's budget included no funding to continue this
work in fiscal year 1999, the Committee believes it is critical to keep
this work going, to ensure that a replacement vessel is developed as
soon as practicable. The Committee fully expects the conceptual design
phase of this project to be completed by the end of fiscal year 1999, so
that design and construction contracts can be awarded the following
year. Moreover, the Committee expects the Coast Guard to issue a report
to the House and Senate Committees on Appropriations on the status of
this project, including the recommended replacement alternative and
fleet mix (with supporting data), as well as an update on the design
process, no later than January 1, 1999.
Deepwater capability concept exploration.-- The Committee recommends
$20,000,000 for this program, an increase of 300 percent above the
$5,000,000 provided for fiscal year 1998, and a reduction of $8,000,000
below the budget estimate. A comparison of the Committee's allowance and
the budget estimate is as follows:
Activity Budget estimate Committee allowance Reduction
Project resident office $1,500,000 $1,000,000 -$500,000
Contract studies 18,000,000 15,000,000 -3,000,000
Independent studies 8,500,000 4,000,000 -4,500,000
------------------ ---------------------- -------------
Total 28,000,000 20,000,000 -8,000,000
ATS 1 conversion.-- The Committee recommends $2,000,000 to continue
conversion of the former U.S. Navy ship ``Edenton'' to a Coast Guard
fisheries enforcement cutter. This is due to overall budget constraints
and the Committee decision to elevate counter-drug acquisition
activities to a higher priority than fisheries enforcement. The budget
estimate included $10,000,000 for this project.
Reactivation of 2 T AGOS vessels. --The recommendation includes
$9,900,000 to reactivate 2 former Navy T AGOS ocean surveillance
vessels, as part of the Committee's counter-drug initiative. Consistent
with Coast Guard concept papers, at least one of these vessels could
serve as a base ship for patrol boats and other relatively small assets
performing counter-drug activities in the Caribbean area of operations,
thereby increasing the endurance and effectiveness of those assets.
Unobligated balance transfer. --The Committee recommends a general
reduction of $9,100,000 which should be addressed by transferring
unobligated balances from the following program:
Project Fiscal year 1997 funds Fiscal year 1998 funds
Polar icebreaker RIP -$3,800,000 -$5,300,000
Aircraft
The Committee recommends $39,400,000 for aircraft, an increase of
$13,600,000 (52.7 percent) above the fiscal year 1998 enacted level and
$2,269,000 above the administration's request.
HC 130 engine conversion. --The Coast Guard budget proposes a large
increase in this program, from $4,100,000 to $9,900,000. The Committee
notes that some AC&I programs must be reduced, since the level of the
budget submission assumed collection of $35,000,000 in new user fees
which are unlikely to be implemented. The Committee believes this
program can proceed at the fiscal year 1998 pace without serious impact.
HH 65 helicopter. --The Committee understands that there are power
availability, weight considerations, space constraints and safety margin
issues with the HH 65 helicopters that need to be addressed before
equipment and capability can be added to this already weight critical
aircraft. The Committee requests the Coast Guard provide a description
of the limitations with relevant measures of how frequently power
limitations restrict the HH 65 below original Coast Guard requirements
and the impact of such limitations. The Committee further requests an
outline of a plan and its costs to restore needed power margins while
accommodating past and future weight growth. This report is request by
March 1, 1999.
Long range search aircraft capability preservation. --According to
the Coast Guard, this project involves studies to sustain the existing
capability of the C 130 aircraft, including electrical systems and
avionics. The product of the work is expected to result in the design of
modification kits costing in the range of $200,000. The Committee
believes this work could easily and appropriately be conducted under the
Coast Guard's operating appropriation, and not AC&I. In addition, the
project has been poorly justified, and outyear costs are not defined.
The Committee recommends no AC&I funds for this project, but the Coast
Guard may use existing OE funds under the aircraft modification budget
through reprioritization of planned work. This results in a reduction of
$1,590,000 from the budget request.
HU 25 engine overhaul. --The recommendation includes $9,100,000 to
conduct engine overhauls of mothballed HU 25 (``Falcon'') jet aircraft,
as part of the Committee's counter-drug initiative. According to the
Coast Guard, maritime patrol surveillance is their greatest need in the
counter-drug area. The Coast Guard is familiar with these aircraft and
have existing inventories of spare parts. However, some work is required
on the engines to bring the aircraft back into service.
Low signature aircraft. --The Coast Guard operational community has
indicated a need for additional night-capable, low-signature
(``stealthy'') aircraft capability. Although the RU 38A aircraft are now
coming into service, upgrades are necessary for them to be more
effective at fighting the drug war. In addition, the Coast Guard has
expressed interest in high technology, low signature rotorcraft
technology which could have an impact on counter-drug operations. The
Committee recommendation includes $2,000,000 for the Coast Guard to
pursue modifications or acquisitions in this area, with the specific
objective of complementing other counter-drug assets by providing covert
surveillance capability.
Unobligated balance transfer. --The Committee recommends a general
reduction of $1,400,000 which should be addressed by transferring
$1,400,000 in unobligated balances from the terminal collision avoidance
system (TCAS) program.
Other Equipment
The Committee recommends $30,314,000 for other equipment, a reduction
of $3,655,000 below the budget estimate.
Marine information for safety and law enforcement (MISLE).-- Due to
budget constraints, the recommendation holds funding for this project at
essentially the fiscal year 1998 level of $4,000,000, a reduction of
$2,000,000 from the budget estimate.
Aviation logistics management information system (ALMIS). --The
Committee denies the requested $1,000,000 for this project due to lack
of justification.
Differential GPS phase II. --The Committee recommends no funding for
this project due to lack of justification and a need to fund higher
priority counter-drug initiatives, a reduction of $2,600,000 from the
budget estimate. Although most of the Coast Guard's differential GPS
program has been completed, this appropriation would fill coastal gaps
in the system, particularly in Alaska, Guam, Puerto Rico, and Hawaii.
Drug interdiction sensors. --The bill includes $9,000,000 for the
acquisition of sensors used in counter-drug operations, including cutter
and aircraft sensors as well as portable drug detection sensors used for
ship boardings. The Coast Guard is accorded the flexibility to determine
the best mix of sensors to satisfy operational requirements and have the
most immediate impact on the drug war.
Unobligated balance transfer. --The Committee recommends a general
reduction of $7,055,000 which should be addressed by transferring
unobligated balances from the following programs:
Project Fiscal year 1997 funds
ALMIS -$3,100,000
Conversion of software -3,500,000
VTS requirements evaluation -455,000
Shore Facilities and Aids to Navigation Facilities
The Committee recommends $42,923,000 for shore facilities and aids to
navigation facilities, a reduction of $10,727,000 from the budget
estimate.
Public family quarters. --The Committee recommends $2,300,000, a
reduction of $16,300,000 below the budget estimate. The Committee has
long been concerned that the Coast Guard sometimes requests funds for
housing projects with insufficient market analysis or other supporting
justification. For example, in July 1992, the Committee report on the
fiscal year 1993 DOT and Related Agencies Appropriations Bill stated:
``The Committee is concerned that the Coast Guard
is not effectively managing the family housing acquisition
program . . . [projects] often end up in the budget with
outdated and insupportable planning documents. In particular,
the market surveys which serve as a primary justification are
often so old that they are meaningless by the time funding is
requested . . . Although the Coast Guard's planning and
programming manual requires that housing needs be under
constant review, it appears that re-evaluation occurs rarely
if at all . . . Future support from the Committee will be
dependent upon management improvements.''
Considering this, the Committee was very disappointed to receive a
report from the Office of Inspector General in April 1998 which found
that 9 of the 14 housing projects reviewed (almost two-thirds) were not
adequately justified. It appears the service has not made the
improvements suggested by the Committee in 1992. According to the IG
report, the Coast Guard has $16,300,000 in unobligated appropriations
for unjustified projects in Sault Ste. Marie, Michigan; Valdez, Alaska;
Oregon Inlet, North Carolina; and Cape Hatteras, North Carolina which
could be put to better use. The Committee recommendation reduces the
budget request by this amount and directs the Coast Guard to apply these
unobligated funds to cover fiscal year 1999 budget requirements. The
Committee also directs the Coast Guard, once again, to correct these
longstanding problems.
Waterways aids to navigation projects.-- The Committee recommends
$4,073,000 for waterways aids to navigation projects, a reduction of
$927,000 from the budget estimate. The reduction is due to budget
constraints.
Group/Station New Orleans, LA-relocation. --The Committee recommends
$4,000,000 to continue the relocation of Group/Station New Orleans to
Bucktown Harbor. These funds are provided to complete any remaining work
to improve the condition of the waterway adjoining the relocation site,
including dredging, bulkhead repairs, and bulkhead replacement, and, as
a second priority, other aspects of the project. Similar funding was
provided for this project last year.
Air Station Miami, FL, renovate fixed wing hangar. --The Committee
believes that, given budget constraints and the need to fund higher
priority counter-drug initiatives, this project can be phased over two
years at approximately the same level each year. This will also reduce
the concurrency in this program, which appears to be unnecessary. This
results in a reduction of $3,500,000 from the budget request, which is
without prejudice to the overall program.
Capitalizable projects. --The Committee recommends a transfer of
$8,000,000 from ``Operating expenses'' to ``Acquisition, construction,
and improvements'' based upon an IG report which found the Coast Guard
inappropriately budgeting in operating expenses projects which should
have been funded from the AC&I budget. The IG selected 45 projects
totaling $25,000,000, and concluded that 32 of the projects (71 percent)
should have been funded from the AC&I appropriation. These included
acquisition of office space, expansion of building capacity, and
construction of a parking lot. The Committee agrees with the IG that
these activities are more appropriately funded from the capital account,
and encourages the Coast Guard to make such changes permanent beginning
in the year 2000 budget.
Training infrastructure, optimize.-- The Committee bill includes the
requested funds for studies, preliminary design and engineering for
facility renovations related to a possible reconfiguration of the Coast
Guard's training facilities. The Committee directs the Coast Guard to
submit its planned report, ``Training 2000'', once it is completed, to
the Committee. The Committee expects that the Coast Guard will obligate
no funds nor take any other actions to consolidate or eliminate any
training facilities until the Committee has had thirty legislative days
to review the Coast Guard report.
Asset sales. --The Committee recommendation assumes a slightly
higher amount of offsetting collections from asset sales in fiscal year
1999 than the budget estimate. Last year, the estimate for fiscal year
1999 was $3,800,000. However, the level assumed in the President's
budget is only $948,300--the lowest amount in three years. Last year,
the Coast Guard listed 29 properties which they believed could be
excessed. To date, only 14 have been excessed, and the budget assumption
would only raise that level to 17. The Committee believes the Coast
Guard could move more aggressively in this area, and accordingly reduces
the request by $2,000,000.
Personnel and Related Support
The bill includes $48,450,000 for AC&I personnel and related support,
an increase of $1,450,000 (3.1 percent) above the fiscal year 1998
enacted level, and the same as the budget estimate. Of the funds
provided, $750,000 is for core acquisition costs.
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 1999 to $3,000,000, resulting in a corresponding savings in budget
authority.
ENVIRONMENTAL COMPLIANCE AND RESTORATION
Appropriation, fiscal year 1998 $21,000,000
Budget estimate, fiscal year 1999 21,000,000
Recommended in the bill 21,000,000
xlBill compared with:
Appropriation, fiscal year 1998
Budget estimate, fiscal year 1999
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 |
