[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.