    [Appendix]
    [Other Materials]
    [Proposed Changes to the 1998 Estimate and Supplemental Proposals]
    [From the U.S. Government Printing Office, www.gpo.gov]

                         THE BUDGET FOR FISCAL YEAR 1999

    [[Page 1157]]

                       PROPOSED CHANGES TO 1998 ESTIMATES

        This Budget contains proposals that would increase 1998 spending by
    $0.6 billion.

        Additional supplemental and rescission proposals are under
    development and will be transmitted separately.

                        SUMMARY OF SUPPLEMENTAL PROGRAMS
                            (In millions of dollars)
    ------------------------------------------------------------------------
                                       1998                Outlays
                                      Budget   -----------------------------
                                     Authority    1998      1999      2000
    ------------------------------------------------------------------------
    Supplemental Proposals:
      Department of Health and
       Human Services.............
    (1)Language Proposal
      Department of Veterans
       Affairs....................        $550      $550  ........  ........
                                   -----------------------------------------
        Total, Supplemental
         Proposals................         550       550  ........  ........
    ------------------------------------------------------------------------

                         THE BUDGET FOR FISCAL YEAR 1999

    [[Page 1159]]

                             SUPPLEMENTAL PROPOSALS

         The following information concerns supplemental appropriations
    requests for 1998 proposed for congressional consideration.

                     Department of Health and Human Services

                          FOOD AND DRUG ADMINISTRATION

                              Salaries and Expenses

               (Supplemental now requested, existing legislation)

        For an additional amount for ``Salaries and expenses'' from fees
    collected pursuant to section 736 of the Federal Food, Drug, and
    Cosmetic Act, an amount equal to the amount by which the total of such
    fees authorized to be collected for fiscal year 1998 exceeds
    $91,204,000, to remain available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 75-9911-1-1-554      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............                      26
                                               ---------   ---------  ----------
    10.00   Total obligations...............                      26
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      26
    23.95 New obligations...................                     -26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                      26
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                      26
    73.20 Total outlays (gross).............                     -26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                      26
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                     -26
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        The FDA Modernization Act of 1998 increased the amount of fees
    authorized for the review of human drug applications (Prescription Drug
    User Fees) after enactment of the Agriculture, Rural Development, Food
    and Drug Administration, and Related Agencies Appropriations Act of
    1998. This supplemental request would enable FDA to collect and use
    these fees for authorized purposes.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 75-9911-1-1-554      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................                      26
                                               ---------   ---------  ----------
    99.9    Total obligations...............                      26
    ---------------------------------------------------------------------------

                         Department of Veterans Affairs

                        VETERANS BENEFITS ADMINISTRATION

                            Compensation and Pensions

               (Supplemental now requested, existing legislation)

        For an additional amount for ``Compensation and pensions'' for
    unanticipated costs incurred for the current fiscal year, $550,000,000,
    to remain available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0153-1-1-701      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Compensation:

            Veterans:
    00.03     World War II..................                      59
    00.04     Korean conflict...............                      21
    00.05     Vietnam era...................                     248
    00.06     Peacetime service.............                     128
    00.07     Persian Gulf conflict.........                      35
                                               ---------   ---------  ----------
    00.91       Total veterans..............                     491
            Survivors:
    01.04     World War I...................                       1
    01.05     World War II..................                      23
    01.06     Korean conflict...............                       7
    01.07     Vietnam era...................                      18
    01.08     Peacetime service.............                       8
    01.09     Persian Gulf conflict.........                       1
                                               ---------   ---------  ----------
    01.91       Total survivors.............                      58
    02.01   Clothing allowance..............                       1
                                               ---------   ---------  ----------
    02.93     Total compensation............                     550
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              42.0).........................                     550
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     550
    23.95 New obligations...................                    -550
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                     550
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                     550
    73.20 Total outlays (gross).............                    -550
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                     550
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     550
    90.00 Outlays...........................                     550
    ---------------------------------------------------------------------------

        This supplemental request would fund the additional costs associated
    with the 1998 Compensation cost-of-living increase (a 2.1 percent
    increase effective December 1, 1997) and an upward revision, based on
    1997 actual data and enacted legislation, of the number of Compensation
    beneficiaries for 1998, as well as an expected increase in average
    payments to Compensation and Pension beneficiaries.

                          TITLE VI--GENERAL PROVISIONS

                     Departments, Agencies, and Corporations

               (Supplemental now requested, existing legislation)

        Section 642 of the Treasury and General Government Appropriations
    Act 1998 (Public Law 105-61; 111 Stat. 1318) is repealed.

    [[Page 1160]]

        This supplemental request would repeal Section 642 of the Treasury
    and General Government Appropriations Act, 1998. That section provides
    an ``open season'' from July 1, 1998 through December 31, 1998 during
    which time Federal and Postal Service employees covered by the Civil
    Service Retirement System (CSRS) could switch to the Federal Employees
    Retirement System (FERS). Section 642 could raise the Federal
    Government's employee retirement costs by billions of dollars over the
    long term. It would force agencies to use limited discretionary dollars
    for more retirement payments, diverting funds from pay raises and other
    priorities. Section 642 could also slow Federal downsizing.