[House Document 104-39]
[From the U.S. Government Publishing Office]





                                     

        104th Congress, 1st Session - - - - - - - - - - - - - House 
Document 104-39


 
                AMENDMENTS TO THE FY 1996 APPROPRIATIONS

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              TRANSMITTING

 AMENDMENTS TO THE FY 1996 APPROPRIATIONS REQUESTS FOR THE DEPARTMENTS 
  OF COMMERCE, EDUCATION, ENERGY, AND THE INTERIOR, AND THE U.S. ARMY 
 CORPS OF ENGINEERS, AS WELL AS A REVISION TO AN FY 1995 SUPPLEMENTAL 
  PROPOSAL FOR THE DEPARTMENT OF LABOR, PURSUANT TO 31 U.S.C. 1106(b)




  February 22, 1995.--Referred to the Committee on Appropriations and 
                         ordered to be printed
                                           The White House,
                                 Washington, DC, February 22, 1995.
The Speaker of the House of Representatives.
    Sir: I ask the Congress to consider amendments to the FY 
1996 appropriations requests for the Departments of Commerce, 
Education, Energy, and the Interior, and the U.S. Army Corps of 
Engineers.
    Included in this package are budget amendments totaling 
$340.5 million that represent an initial installment in savings 
from the second phase of our effort to reinvent Government. 
These reductions to the pending requests for FY 1996 
appropriations were assumed in the Budget. Additional budget 
amendments related to this effort will be submitted in the near 
future.
    In addition, an increase of $35 million in FY 1996 budget 
authority is requested for the Department of Education to fund 
the Education Infrastructure program. This increase is offset 
by a reduction in the FY 1996 appropriations request for the 
Clean Coal Technology program in the Department of Energy.
    This package also contains a revision to an FY 1995 
supplemental proposal for the Department of Labor submitted in 
the FY 1996 Budget.
    The details of these actions are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget. I concur with her comments and observations.
            Sincerely,
                                                William J. Clinton.
    Enclosure.
                 Estimate No. 5, 104th Cong., 1st Sess.

                 Executive Office of the President,
                           Office of Management and Budget,
                                 Washington, DC, February 22, 1995.
The President,
The White House.
    Submitted for your consideration are amendments to your FY 
1996 appropriations requests now pending before Congress. These 
budget amendments would implement proposals that are included 
in Phase II of the Administration's reinventing Government 
initiative and that do not require substantive changes in 
authorizing legislation. The savings of $340.5 million in FY 
1996 budget authority that would be realized by these proposals 
are assumed in your FY 1996 Budget. Over a five-year period--
from FY 1996 to FY 2000--the effect of these proposals would be 
to reduce budget authority by $4.7 billion.
    As described in the enclosures, these amendments would 
reduce the pending FY 1996 appropriations requests as follows:
    Department of Commerce. Savings of $3.3 million would 
result from privatizing specialized weather services provided 
to aviation, marine, and agricultural communities by the 
National Weather Service.
    Department of Education. Savings of $112.7 million would 
result from eliminating ten small Education programs. 
Restructuring the impact aid program would produce additional 
savings of $31 million.
    Department of Energy. Reinventing the Department of Energy 
would yield savings of $144.5 million, including: $25 million 
from streamlining Department of Energy contracts; $109.5 
million from streamlining and realigning the Department's 
energy programs, including the national laboratories; and $10 
million from Energy conservation reductions.
    Department of the Interior. Streamlining and consolidation 
within the Bureau of Mines would produce savings of $20 
million.
    U.S. Army Corps of Engineers. Savings of $29 million would 
result from focusing the Corps' efforts on projects of 
national, rather than local, significance.
    In addition to the reduction proposals discussed above, an 
increase of $35 million in FY 1996 budget authority is 
requested for the Department of Education to fund the Education 
Infrastructure program. This increase would be offset by a 
reduction in the Department of Energy's Clean Coal Technology 
program.
    Also submitted for your consideration is a revision to an 
FY 1995 supplemental for the Employment and Training 
Administration in the Department of Labor, which was 
transmitted in the FY 1996 Budget. This revised proposal 
reflects additional budget authority savings of $36.7 million 
due to lower postage expenses and less demand for 
administrative grant funds. These FY 1995 savings would offset 
a proposal to decrease the amount of a Department of Education 
rescission contained in the FY 1996 Budget, which is submitted 
for your consideration in a separate transmittal.
    I have carefully reviewed these proposals and am satisfied 
that they are needed at this time. Therefore, I join the heads 
of the affected departments and agencies in recommending that 
they be transmitted to the Congress.
    Additional budget amendments will be submitted in the near 
future to implement additional aspects of Phase II of the 
Administration's reinventing Government initiative.
            Sincerely,
                                           Alice M. Rivlin,
                                                          Director.
    Enclosures.

                     DEPARTMENT OF COMMERCE--NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION                    
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
266.......  Operations, research, and facilities.......     $2,028,800,000        -$3,265,000     $2,025,535,000
----------------------------------------------------------------------------------------------------------------

    (In the appropriations language under the above heading, 
delete ``$2,031,800,000'' and substitute $2,028,535,000; and 
delete ``$2,028,800,000'' and substitute $2,025,535,000.)
    This proposal is part of the second phase of the 
Administration's reinventing Government initiative. The 
amendment would reduce the general fund appropriations request 
for this account by $3,265,000. This reduction is possible due 
to privatization of portions of the National Weather Service. 
Specific portions of the National Weather Service that will be 
privatized include specialized weather services provided to 
aviation, marine, and agricultural communities.
    This reduction proposal was included in the FY 1996 Budget 
as an item to be transmitted to the Congress at a later date. 
The proposed budget totals would not be affected.

                              DEPARTMENT OF DEFENSE-CIVIL--CORPS OF ENGINEERS-CIVIL                             
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
365.......  General investigations.....................       $171,625,000       -$16,000,000       $155,625,000
----------------------------------------------------------------------------------------------------------------

    This proposal is part of the second phase of the 
Administration's reinventing Government initiative. The FY 1996 
budget authority reduction is possible because responsibility 
for local water projects and other programs will be shifted to 
the States and local communities. The Corps of Engineers would 
not begin new reconnaissance or feasibility studies or new pre-
construction engineering and design for local flood protection 
and storm damage prevention projects.
    This reduction proposal was included in the FY 1996 Budget 
as an item to be transmitted to the Congress at a later date. 
The proposed budget totals would not be affected.

                              DEPARTMENT OF DEFENSE-CIVIL--CORPS OF ENGINEERS-CIVIL                             
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
367.......  Construction, general......................       $798,125,000       -$13,000,000       $785,125,000
----------------------------------------------------------------------------------------------------------------

    This proposal is part of the second phase of the 
Administration's reinventing Government initiative. Under this 
proposal, the Corps of Engineers would only begin new regular 
construction on projects determined to be of national 
significance and would discontinue its aquatic plant control 
program. Nationally significant projects are those that would 
address commercial navigation, interstate flooding problems, 
and environmental restoration. There would be no new 
construction of local flood protection or storm damage 
reduction projects in FY 1996 or future years. Flood control 
projects in which the Federal Government would continue to 
participate in future years would include those in which over 
half of the flood waters come from outside the State, the 
benefits are at least twice the costs, and the cost-sharing 
partner is willing and able to contribute 75 percent of the 
cost of the project.
    This reduction proposal was included in the FY 1996 Budget 
as an item to be transmitted to the Congress at a later date. 
The proposed budget totals would not be affected.

                      DEPARTMENT OF EDUCATION--OFFICE OF ELEMENTARY AND SECONDARY EDUCATION                     
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
384.......  Impact aid.................................       $650,000,000       -$31,000,000       $619,000,000
----------------------------------------------------------------------------------------------------------------

    (In the appropriations language under the above heading, 
delete ``$650,000,000'' and substitute $619,000,000; delete 
``$581,000,000'' and substitute $550,000,000; and insert the 
following immediately before the period at the end of the 
paragraph: Provided, That payments and eligibility under 
section 8003 shall be based only on federally connected 
children described in sections 8003(a)(1)(B) and 8003(a)(1)(C): 
Provided further, That notwithstanding the provisions of 
section 8003(b)(1)(B), any local educational agency that 
received a payment based on federally connected children 
described in sections 8003(a)(1)(B) and 8003(a)(1)(C) for 
fiscal year 1995 shall be eligible to receive a payment under 
sections 8003(b) and 8003(d) for fiscal year 1996: Provided 
further, That notwithstanding the provisions of section 
8003(b)(1)(C), the maximum amount of the basic support payment 
shall be determined by multiplying each local educational 
agency's weighted student units for federally connected 
children described in sections 8003(a)(1)(B) and 8003(a)(1)(C) 
by the factor described under section 8003(b)(1)(C)(iv): 
Provided further, That notwithstanding the provisions of 
section 8003(b)(2), if funds provided are insufficient to pay 
each local educational agency the full amount of its payment 
calculated under section 8003(b)(1)(C), then payments shall be 
ratably reduced: Provided further, That none of the funds 
provided shall be used for payments under section 8003(e))
    This proposal is part of the second phase of the 
Administration's reinventing Government initiative. The 
proposal would delete a portion of the appropriations request 
for Basic Support Payments under the Impact aid account and 
would limit payments to those made on behalf of two categories 
of federally connected children: children who live on Federal 
property with a parent in the uniformed services, and children 
who live on Indian lands. This amendment would also make 
conforming changes in the authorizing statute and modify the 
formula to provide equitable payments on behalf of these two 
categories of children.
    This reduction proposal was included in the FY 1996 Budget 
as an item to be transmitted to the Congress at a later date. 
The proposed budget totals would not be affected.

                      DEPARTMENT OF EDUCATION--OFFICE OF ELEMENTARY AND SECONDARY EDUCATION                     
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
385.......  School improvement.........................     $1,512,277,000        $33,054,000      1,545,331,000
                                                                                                        programs
----------------------------------------------------------------------------------------------------------------

    (In the appropriations language under the above heading, 
delete ``and V,'' and substitute V, and XII,; delete 
``$1,512,277,000'' and substitute $1,545,331,000; delete 
``$1,230,000,000'' and substitute $1,265,000,000; and insert 
the following immediately before the period at the end of the 
paragraph: , and $35,000,000 shall be for education 
infrastructure grants under title XII of said Act: Provided 
further, That notwithstanding sections 12004(b) and 12005(b) of 
said Act, funds shall be available for awards only to local 
educational agencies serving an empowerment zone, supplemental 
empowerment zone, or enterprise community designated by the 
Department of Housing and Urban Development or the Department 
of Agriculture, for projects in education facilities within the 
boundaries of such zone or community.)
    This amendment would increase the pending appropriations 
request for this account by a net $33,054,000.
    As part of the second phase of the Administration's 
reinventing Government initiative, the appropriations request 
for the Christa McAuliffe Fellowships program is proposed for 
deletion. This program is being eliminated as a free-standing 
program in order to reduce the number of categorical programs 
and to provide savings. However, in order to retain the 
memorial to Christa McAuliffe and to continue to provide 
fellowships for teachers, a similar fellowship competition will 
be carried out in her name under the Eisenhower Professional 
Development Federal Activities authority under the Education, 
research, statistics, and improvement account. The new 
fellowship competition will be funded at $2 million but will be 
more streamlined for States and individuals and will reduce 
paperwork and program duplication. This reduction proposal was 
included in the FY 1996 Budget as an item to be transmitted to 
the Congress at a later date. The proposed budget totals would 
not be affected.
    In addition, this amendment would increase the 
appropriations request for the School Improvement Programs 
account by $35 million for education infrastructure grants. 
Language is included to provide awards only to local 
educational agencies serving empowerment zones and enterprise 
communities, and to require that funds be used for school 
facilities within empowerment zones and enterprise communities. 
The additional resources for the education infrastructure 
grants would increase FY 1996 outlays by $4.2 million.

                           DEPARTMENT OF EDUCATION--OFFICE OF POSTSECONDARY EDUCATION                           
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
397.......  Higher education...........................       $931,511,000      -$110,739,000       $820,772,000
----------------------------------------------------------------------------------------------------------------

    (Delete all of the language that appears under this heading 
and substitute the following:
    For carrying out, to the extent not otherwise provided, 
titles I, III, without regard to section 360(a)(1)(B)(ii), IV, 
[including chapter 2 of subpart 2 of part A] V, VI, VII, IX, 
[VIII,] and part A and subpart 1 of part B [, and part D] of 
title X [, and XI, without regard to section 1151,] of the 
Higher Education Act of 1965, as amended; and the Mutual 
Educational and Cultural Exchange Act of 1961 [; title VI, 
including part C, of the Excellence in Mathematics, Science and 
Engineering Education Act of 1990; section 1521 of the Higher 
Education Amendments of 1986 as amended by Public Law 103-239, 
to be administered by the Secretary of Education; part E of 
title XV of the Higher Education Amendments of 1992; and Public 
Law 102-423, $962,842,000] , $820,772,000, of which 
[$8,060,000] $2,015,000 for endowment activities under [section 
331 of] part C of title III and [$17,512,000] $16,712,000 for 
interest subsidies under title VII of the Higher Education Act 
[, as amended, and $4,000,000 for Public Law 102-423] shall 
remain available until expended [, and $1,000,000 of the amount 
provided herein for title III shall be available for an 
evaluation of the title III programs.] : Provided, That funds 
available for part C of title III of the Higher Education Act 
shall be available only for awards to recipients that are title 
III, part B institutions, as defined in section 322(2).)
    This proposal is part of the second phase of the 
Administration's reinventing Government initiative. The 
proposal would delete a portion of the appropriations request 
for the Higher education account. The amendment would reduce 
funding for the Strengthening Institutions program consistent 
with a two-year phase-out of the program, and would eliminate 
funding for the following programs: the non-Historically Black 
Colleges and Universities (HBCU) portion of the Endowment 
Grants program, Innovative Projects for Community Service, 
National Science Scholars, Douglas Teacher Scholarships, Harris 
Fellowships, Javits Fellowships, and Legal Training for the 
Disadvantaged. Specific activities that would be reduced are as 
follows:

------------------------------------------------------------------------
                                                                        
Strengthening                                                           
 institutions..        $80,000,000       -$40,000,000        $40,000,000
Endowment                                                               
 grants........          8,060,000         -6,045,000          2,015,000
Program                                                                 
 development...         99,878,000        -14,423,000         85,455,000
Scholarships...         57,140,000        -19,023,000         38,117,000
Graduate                                                                
 fellowships...         59,268,000        -28,284,000         30,984,000
Legal training                                                          
 for the                                                                
 disadvantaged.          2,964,000         -2,964,000                  0
------------------------------------------------------------------------

    This reduction proposal was included in the FY 1996 Budget 
as an item to be transmitted to the Congress at a later date. 
The proposed budget totals would not be affected.

                             DEPARTMENT OF ENERGY--ATOMIC ENERGY DEFENSE ACTIVITIES                             
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
425.......  Weapons activities.........................     $3,565,175,000       -$25,000,000     $3,540,175,000
----------------------------------------------------------------------------------------------------------------

    This proposal is part of the second phase of the 
Administration's reinventing Government initiative. The 
proposal reflects anticipated savings from a program to 
streamline Department of Energy contracts. The actual savings 
may occur in this account or in other accounts under this 
title. Appropriations language submitted for this account with 
the FY 1996 Budget provides that in the event some portion of 
these savings are achieved in other accounts under this title, 
amounts equal to such savings may be transferred to this 
account without regard to the requirements or limitations of 
section 302 of Public Law 102-377.
    This reduction proposal was included in the FY 1996 Budget 
as an item to be transmitted to the Congress at a later date. 
The proposed budget totals would not be affected.

                                      DEPARTMENT OF ENERGY--ENERGY PROGRAMS                                     
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
432.......  Energy supply, research and development         $3,506,035,000      -$109,500,000     $3,396,535,000
             activities.                                                                                        
----------------------------------------------------------------------------------------------------------------

    This proposal is part of the second phase of the 
Administration's reinventing Government initiative. The 
proposal reflects reductions possible due to the Department of 
Energy's (DOE's) streamlining and realignment activities and 
includes: (1) a $10 million reduction in Solar and Renewable 
Energy R&D as part of the Department's applied R&D reductions; 
(2) $50 million in anticipated savings from consolidation of 
DOE laboratory activities in response to the report on 
Alternative Futures for DOE national laboratories; and (3) a 
$49.5 million reduction possible due to reductions and 
efficiencies realized in the current budget year. The expected 
savings from laboratory consolidation may not all occur in 
programs funded under this account hearing. If they occur in 
other programs, the appropriation language submitted in the FY 
1996 Budget would allow transfers of funds from the programs 
where savings accrue into the Energy supply R&D account. This 
will ensure that savings are accounted for correctly.
    This reduction proposal was included in the FY 1996 Budget 
as an item to be transmitted to the Congress at a later date. 
The proposed budget totals would not be affected.

                                      DEPARTMENT OF ENERGY--ENERGY PROGRAMS                                     
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
439.......  Energy conservation........................       $933,561,000       -$10,000,000       $923,561,000
----------------------------------------------------------------------------------------------------------------

    This proposal is part of the second phase of the 
Administration's reinventing Government initiative. The 
amendment would reduce the appropriations request for this 
account by $10 million. This reduction is possible due to the 
Department's streamlining and realignment processes.
    This reduction proposal was included in the FY 1996 Budget 
as an item to be transmitted to the Congress at a later date. 
The proposed budget totals would not be affected.

                                      DEPARTMENT OF ENERGY--ENERGY PROGRAMS                                     
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
445.......  Clean coal technology......................        $44,981,000       $-35,000,000         $9,981,000
----------------------------------------------------------------------------------------------------------------

    (In the appropriations language under the above heading, 
delete ``$20,000,000 on October 1, 1995 and''; and delete 
``$24,981,000'' and substitute $9,981,000).
    Pursuant to the FY 1995 Interior appropriations bill, $200 
million will become available for the Clean Coal Technology 
program in FY 1996. This amendment proposes to reduce this 
amount by $35 million, for a revised total of $165 million in 
FY 1996. It is anticipated that some projects currently in the 
program will not proceed to construction and operation for a 
variety of factors. For this reason, a reduction of this 
portion of the advance appropriation will not affect the 
Department of Energy's ability to accomplish its mission 
successfully.

                                   DEPARTMENT OF THE INTERIOR--BUREAU OF MINES                                  
----------------------------------------------------------------------------------------------------------------
   1996                                                                                                         
  budget                                                    1996 budget       1996 proposed       1996 revised  
 appendix                     Heading                     request pending       amendment           request     
   page                                                                                                         
----------------------------------------------------------------------------------------------------------------
570.......  Mines and minerals.........................       $152,507,000       -$20,000,000       $132,507,000
----------------------------------------------------------------------------------------------------------------

    This proposal is part of the second phase of the 
Administration's reinventing Government initiative. As part of 
this initiative, the Bureau of Mines (USBM) would emphasize 
priority functions such as environmental remediation and health 
and safety. The reduction in the pending request is possible 
due to streamlining of bureau functions and the consolidation 
of field offices and research centers into four research 
centers to focus research efforts on: (1) environmental 
remediation; (2) pollution prevention and control; (3) health 
and safety; and (4) materials research partnerships. Programs 
more appropriately conducted by States or the private sector 
(e.g., Federal financial support for the 30 Mineral Institutes) 
would be eliminated.
    This reduction proposal was included in the FY 1996 Budget 
as an item to be transmitted to the Congress at a later date. 
The proposed budget totals would not be affected.

                            Revised Request

      Department of Labor--Employment and Training Administration

     State Unemployment Insurance and Employment Service Operations

    Funds made available under this heading in Public Law 103-
333 are reduced from $3,269,097,000 to $3,228,397,000.
    This request revises an FY 1995 supplemental proposal 
contained in the FY 1996 Budget that reflected $4 million in 
budget authority savings in postage expenses. These postage 
expenses are paid by the Department of Labor on behalf of State 
employment security agencies that operate the unemployment 
insurance program. As the Budget proposal noted, the U.S. 
Postal Service has changed 
the methodology for calculating postal charges from a sampling 
survey to actual costs which, along with improved State mail 
management practices, has resulted in lower postage charges. 
Additional budget authority savings of $3.8 million have been 
identified, for total postage expense savings of $7.8 million. 
FY 1995 outlays would be decreased by $3.8 million from the 
totals shown in the FY 1996 Budget.
    In addition, this revised request reflects budget authority 
savings of $32.9 million in administrative grant funds. These 
administrative grants go to State agencies that pay 
unemployment compensation to eligible workers and collect State 
unemployment taxes from employers. Administrative grants are 
based on projected workload. Because economic conditions have 
improved, not all of the administrative funds appropriated for 
FY 1995 will be needed. The FY 1996 Budget includes the outlay 
effects of the improved economic conditions. This proposal 
would provide the corresponding reduction in budget authority.
    This account obtains offsetting collections from the 
Unemployment Trust Fund.