[House Document 110-18]
[From the U.S. Government Publishing Office]




110th Congress, 1st Session - - - - - - - - - - - - - House Document 110-18

 
          A REQUEST FOR BUDGET AMENDMENTS FOR FISCAL YEAR 2008

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

A REQUEST TO CANCEL $3.1 BILLION OF FUNDING FROM LOWER-PRIORITY FEDERAL 
           PROGRAMS AND EXCESS FUNDS--RECEIVED MARCH 12, 2007





   March 12, 2007.--Message and accompanying papers referred to the 
         Committee on Appropriations and ordered to be printed

                                           The White House,
                                         Washington, March 9, 2007.
Hon. Nancy Pelosi,
Speaker of the House of Representatives,
Washington, DC.
    Dear Madam Speaker: I ask the Congress to consider the 
enclosed FY 2007 request to cancel $3.1 billion of funding from 
lower-priority Federal programs and excess funds. This request 
would offset fully the funds needed to address the $3.1 billion 
FY 2007 funding shortfall for the Department of Defense to 
implement the recommendations of the 2005 Base Realignment and 
Closure Commission. The proposed cancellations would affect the 
Departments of Agriculture, Commerce, Education, Energy, Health 
and Human Services, Housing and Urban Development, the 
Interior, and Transportation, as well as the Corps of 
Engineers.
    The details of this request are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget.
            Sincerely,
                                                    George W. Bush.
                [Estimate No. 2, 110th Cong., 1st Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                     Washington, DC, March 9, 2007.
The President,
The White House.
    Submitted for your consideration is an FY 2007 request to 
cancel $3.1 billion of funding from lower-priority Federal 
programs and excess funds. These proposals would offset fully 
funds needed to address the $3.1 billion FY 2007 funding 
shortfall for the Department of Defense (DOD) to implement the 
recommendations of the 2005 Base Realignment and Closure (BRAC) 
Commission. These funds are necessary for DOD to continue 
scheduled redeployments of military personnel and their 
families from overseas stations to the United States and 
support the training, mobilization and deployment of military 
forces in support of the Global War on Terror. In addition, 
these funds are required to maintain the legislated schedule 
for BRAC realignments and closures, which is important to 
communities that have already made specific plans and 
commitments.
    As described below and in more detail in the enclosures, 
the cancellation proposals include the following:
Department of Agriculture
    $245.3 million from the Department of Agriculture, which 
includes $39.6 million from the Rural Business Enterprise 
Grants of the Rural Business and Cooperative Service; $50.0 
million from the Foreign Agricultural Service Trade Adjustment 
Assistance; $130.0 million from the Hatch Act formula grant 
program; and $25.7 million from the High Energy Cost Grants 
program.
Department of Commerce
     $79.1 million from the Advanced Technology 
Program.
Department of Education
     $891.7 million from the Department of Education, 
which includes $65.0 million to eliminate the Leveraging 
Educational Assistance Partnership program; $381.0 million to 
reduce funding for Career and Technical Education State Grants; 
$104.8 million to eliminate Tech-Prep State Grants; $272.3 
million to eliminate the Enhancing Education Through Technology 
State Grants program; and $68.7 million to reduce funding for 
Even Start.
Department of Energy
     $200.0 million of excess funding from the 
Environmental Management program.
Department of Health and Human Services
     $118.0 million from the Centers for Disease 
Control and Prevention, which includes $68.0 million from a 
duplicative block grant and $50.0 million from buildings and 
facilities activities.
Department of Housing and Urban Development
     $740.0 million of excess funding from the 
Community Development Block Grant program.
Department of the Interior
     $77.3 million of excess funding from the 
Department of the Interior, which includes $49.3 million from 
the Bureau of Indian Affairs' Education Construction program 
and nearly $28.0 million from the Land and Water Conservation 
Fund State Grants program.
Department of Transportation
     $677.0 million from the Department of 
Transportation, which includes $121.0 million from Operating 
Subsidy Grants to the National Railroad Passenger Corporation 
and $272.0 million from Capital Grants to the National Railroad 
Passenger Corporation. Also included is a request to cancel 
$284.0 million of available contract authority from the Airport 
Improvement Program.
Corps of Engineers--Civil Works
     $50.0 million from lower-priority programs in the 
Corps of Engineers Investigations account.
Recommendation
    I have carefully reviewed these proposals and am satisfied 
that they are necessary at this time. Therefore, I join the 
heads of the affected departments and agencies in recommending 
that you transmit this request to the Congress.
            Sincerely,
                                                       Rob Portman.
    Enclosures.
                       DEPARTMENT OF AGRICULTURE


      Cooperative State Research, Education, and Extension Service


                   RESEARCH AND EDUCATION ACTIVITIES

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $130,000,000 are cancelled.
    The proposal would cancel $130.0 million from the Hatch Act 
formula grant program, which provides funding to land grant 
universities. While Public Law 110-5 eliminated $166 million of 
earmarks, it increased the Hatch Act formula grant by $146 
million (82 percent over the President's FY 2007 Budget 
request). The Administration has consistently emphasized that 
funding through peer-reviewed competitive research programs 
generates the highest quality research, and therefore believes 
that providing significant amounts of additional funding to 
statutorily-derived formula programs is not the most effective 
use of taxpayer dollars.
                                ------                                


                       DEPARTMENT OF AGRICULTURE


                       Rural Development Programs


                  RURAL COMMUNITY ADVANCEMENT PROGRAM

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $39,600,000 are cancelled.
    The proposal would cancel $39.6 million from the Rural 
Business Enterprise Grants of the Department of Agriculture's 
(USDA's) Rural Business and Cooperative Service. The program 
provides grants to public bodies, nonprofits, and tribal groups 
to support development of small businesses in rural 
communities. The proposed cancellation would eliminate funding 
for a program that is duplicative of many other grant programs 
within USDA and the Federal Government.
                                ------                                


                       DEPARTMENT OF AGRICULTURE


                        Rural Utilities Service


                        HIGH ENERGY COST GRANTS

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $25,740,000 are cancelled.
    The proposal would cancel $25.7 million from the High 
Energy Cost Grants program of the Department of Agriculture's 
Rural Utilities Service (RUS). The program provides grants for 
areas where the cost to deliver energy is significantly higher 
than the national average. The proposed cancellation is 
possible because there is nearly $18 million in carryover 
balances to cover needs in FY 2007. In addition, those eligible 
for grants are also eligible for low-cost electric loans 
through RUS.
                                ------                                


                       DEPARTMENT OF AGRICULTURE


                      Foreign Agricultural Service


                TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

    Of the funds made available for fiscal year 2007 in section 
298 of Title II of the Trade Act of 1974, as amended by Public 
Law 107-210, $50,000,000 are cancelled.
    The proposal would cancel $50.0 million from the Foreign 
Agricultural Service Trade Adjustment Assistance (TAA) for 
Farmers program. The TAA for Farmers program provides technical 
and financial assistance for agricultural producers and 
fishermen who suffer lower prices due to imports. The proposed 
cancellation is possible because applications for TAA for 
Farmers have fallen drastically below expected levels.
                                ------                                


                         DEPARTMENT OF COMMERCE


             National Institute of Standards and Technology


                     INDUSTRIAL TECHNOLOGY SERVICES

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $79,077,650 are cancelled.
    The proposal would cancel $79.1 million from the Advanced 
Technology Program (ATP). No funding for new starts was 
provided in FY 2006, and initial appropriations action for FY 
2007 would have provided no further funding for the program. 
ATP is a grant program for businesses that was intended to 
develop new technologies for commercial use. Given the growth 
of venture capital and other financing sources for high-tech 
projects, the program is no longer warranted in today's 
research and development environment. Large shares of ATP 
funding have gone to major corporations, and past Government 
Accountability Office studies found that projects often have 
been similar to those conducted by firms not receiving such 
subsidies. ATP subsidizes research that should be funded by 
private industry, which has the means and incentive for these 
research investments.
                                ------                                


                        DEPARTMENT OF EDUCATION


              Office of Elementary and Secondary Education


                    EDUCATION FOR THE DISADVANTAGED

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $68,700,000 are cancelled.
    Of the $7.2 billion made available July 1, 2007 in this 
account, $68.7 million would be cancelled from the Even Start 
program. Sufficient funds would remain to fund Even Start 
continuation awards.
                                ------                                


                        DEPARTMENT OF EDUCATION


              Office of Elementary and Secondary Education


                      SCHOOL IMPROVEMENT PROGRAMS

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $272,250,000 are cancelled.
    The proposal would cancel $272.3 million from this account 
to eliminate the Enhancing Education Through Technology State 
Grants program. This program supports funding for States and 
local school districts to use technology to improve instruction 
and student learning. While educational technology may have a 
positive impact on student achievement, schools can use other 
Education program funding to support technology uses, including 
Title I Grants to Local Educational Agencies and Teacher 
Quality State Grants. This cancellation is consistent with 
proposals to terminate this program in the President's FY 2007 
and FY 2008 Budgets.
                                ------                                


                        DEPARTMENT OF EDUCATION


                Office of Vocational and Adult Education


                     VOCATIONAL AND ADULT EDUCATION

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $485,755,000 are cancelled.
    Of the $485.8 million proposed for cancellation, $381.0 
million would come from Career and Technical Education (CTE) 
State Grants, which was funded at $1.2 billion in FY 2006. CTE 
State Grants provides grants to States to support high schools 
and community college activities related to vocational and 
technical education. The proposed cancellation is possible 
because States have already received a $791 million advance 
appropriation for expenses in the 2007-2008 school year.
    In addition, $104.8 million would be cancelled for Tech-
Prep State Grants, which was funded at $105 million in FY 2006. 
The Tech-Prep State Grants program supports partnerships that 
develop structural links between secondary schools and 
postsecondary institutions to integrate academic and vocational 
education. The populations served and services provided under 
this program are duplicative of the much larger Career and 
Technical Education State Grants program.
                                ------                                


                       DEPEPARTMENT OF EDUCATION


                     Office of Federal Student Aid


                      STUDENT FINANCIAL ASSISTANCE

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $64,986,570 are cancelled.
    The proposal would cancel $65.0 million from the Student 
Financial Assistance account to eliminate the Leveraging 
Educational Assistance Partnership program. The Performance 
Assessment Rating Tool analysis determined this program had not 
demonstrated results. State grant levels have expanded greatly 
over the years, and most States significantly exceed the 
statutory matching requirements. State matching funds in the 
academic year 1999-2000, for example, totaled nearly $1 
billion, or more than $950 million over the level generated by 
a dollar-for-dollar match. The program would be terminated, 
consistent with proposals in the President's FY 2007 and FY 
2008 Budgets.
                                ------                                


                          DEPARTMENT OF ENERGY


               Environmental and Other Defense Activities


                     DEFENSE ENVIRONMENTAL CLEANUP

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $200,000,000 are cancelled.
    The proposal would cancel $200.0 million from the 
Environmental Management program. The program's mission is to 
clean up radioactive and hazardous waste at Department of 
Energy sites that supported the development and production of 
nuclear weapons. The program's FY 2007 plans reflect 
significantly reduced requirements due to the completion of the 
Rocky Flats site (Colorado) in FY 2006. The additional 
resources provided by P.L. 110-5 cannot be effectively spent in 
the remaining months of FY 2007.
                                ------                                


                DEPARTMENT OF HEALTH AND HUMAN SERVICES


               Centers for Disease Control and Prevention


                DISEASE CONTROL, RESEARCH, AND TRAINING

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $118,000,000 are cancelled.
    Of the $118.0 million proposed for cancellation, $68.0 
million would come from the Disease Control, Research, and 
Training account because it duplicates existing categorical 
grants, and does not have performance metrics. This proposal is 
consistent with the President's FY 2007 and FY 2008 Budgets. 
Existing categorical grants will continue to support chronic 
disease prevention activities throughout the Nation.
    In addition, $50.0 million would be cancelled from the 
Centers for Disease Control and Prevention (CDC) buildings and 
facilities, to allow for a more sustainable funding path for 
this activity. CDC will still be able to make substantial 
improvements to agency facilities and will be able to support 
routine maintenance and improvement activities within available 
resources.
                                ------                                


              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                   Community Planning and Development


                       COMMUNITY DEVELOPMENT FUND

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $740,000 are cancelled.
    The proposal would cancel $740.0 million from the Community 
Development Block Grant (CDBG) program. This program was 
proposed to be reduced in the President's FY 2007 and FY 2008 
Budgets, and P.L. 110-5 provides funding significantly above 
these requests. The current CDBG program is not well-targeted 
and program results have not been adequately demonstrated or 
reported. The Administration continues to support CDBG 
legislative reforms, similar to the CDBG Reform Act, which was 
transmitted to the Congress in May 2006.
                                ------                                


                       DEPARTMENT OF THE INTERIOR


                        Bureau of Indian Affairs


                              CONSTRUCTION

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $49,346,000 are cancelled.
    The proposal would cancel $49.3 million from the Bureau of 
Indian Affairs (BIA) Education Construction program. The 
program provides safe and functional schools and dormitories 
through replacement of buildings or improvement and repair 
projects. Approximately 46,000 Indian students attend 184 BIA-
funded schools in Indian communities located in 23 States. The 
proposal cancels funding provided by the Congress above the 
President's FY 2007 Budget request and is not identified with 
specific projects. The proposed cancellation would allow BIA 
time to catch up on previously funded school construction 
projects. The program has had difficulty absorbing funding 
increases and managing projects during the past several years.
                                ------                                


                       DEPARTMENT OF THE INTERIOR


                         National Park Service


                 LAND ACQUISITION AND STATE ASSISTANCE

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $27,995,000 are permanently cancelled.
    The proposal would cancel $28.0 million from the Land and 
Water Conservation Fund State grants program in the National 
Park Service. The program provides grants to States for land 
acquisition and improvements to State and local parks. No funds 
for this program were requested in the FYs 2006, 2007, or 2008 
President's Budgets on the grounds that paying to improve State 
and local parks are decisions better left to State and local 
taxpayers. A Program Assessment Rating Tool review found that 
this grant program had not been able to measure performance or 
demonstrate results. The proposed cancellation would not affect 
funds to administer program or prior-year balances that are not 
obligated, but have been allocated to the States.
                                ------                                


                      DEPARTMENT OF TRANSPORTATION


                    Federal Railroad Administration


OPERATING SUBSIDY GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $121,000,000 are cancelled.
    This proposal would cancel $121.0 million from the 
Operating Subsidy Grants to the National Railroad Passenger 
Corporation. Amtrak carried forward more than $200 million in 
operating funds into FY 2007, which is an unusually large 
amount. With this available balance, Amtrak should have 
adequate working capital reserves so that its actual FY 2007 
operating budget would not be substantially affected by a 
cancellation. This proposal would further an Administration 
reform proposal to force the railroad to operate more like a 
business.
                                ------                                


                      DEPARTMENT OF TRANSPORTATION


                    Federal Railroad Administration


  CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL RAILROAD PASSENGER 
                              CORPORATION

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $272,000,000 are cancelled.
    This proposal would cancel $272.0 million from the Capital 
Grants to the National Railroad Passenger Corporation. In FY 
2007, Amtrak received an appropriation of $772 million for 
capital expenses and debt service payments, which incorrectly 
implies that repaying Amtrak's debt service is a Federal 
responsibility. There is no obligation by the Federal 
Government to fund this expense, particularly because Amtrak is 
a private corporation that independently decided to take on its 
debt. This proposal would eliminate Amtrak's set-aside for debt 
service, furthering an Administration reform proposal and 
forcing the railroad to operate more like a business.
                                ------                                


                      DEPARTMENT OF TRANSPORTATION


                    Federal Aviation Administration


                       GRANTS-IN-AID FOR AIRPORTS

                  (LIQUIDATION OF CONTRACT AUTHORITY)

                      (LIMITATION ON OBLIGATIONS)

                    (AIRPORT AND AIRWAY TRUST FUND)

    Notwithstanding section 101 of P.L. 110-5, the limitation 
on obligations under this heading shall not exceed 
$3,416,000,000.

                       GRANTS-IN-AID FOR AIRPORTS

                    (AIRPORT AND AIRWAY TRUST FUND)

                  (CANCELLATION OF CONTRACT AUTHORITY)

    Of the amounts authorized for the fiscal year ending 
September 30, 2007 and prior years under sections 48103 and 
48112 of title 49, United States Code, $284,000,000 are 
cancelled.
    The proposal cancels $284.0 million of available contract 
authority from the Airport Improvement Program (AlP) and sets 
the obligation limitation at $3,416 million for 2007, which is 
a reduction of $98.5 million from the level provided in P.L. 
110-5. AlP provides grants to airports to address capacity, 
safety, and security needs. This cancels a total of $284 
million in contract authority, comprised of $185.5 million in 
contract authority in excess of the current obligation 
limitation provided in P.L. 110-5 as the bill did not cancel 
this available contract authority. This also cancels $98.5 
million in contract authority as well as reduces the obligation 
limitation by the same amount. The obligation limitation 
provided in P.L. 110-5 of $3.5 billion was $765 million above 
the President's Request for 2007.
                                ------                                


                    CORPS OF ENGINEERS--CIVIL WORKS


                             INVESTIGATIONS

    Of the funds made available under this heading pursuant to 
Public Law 110-5, $50,000,000 are cancelled.
    The proposal would cancel $50.0 million from the Corps of 
Engineers Investigations account. This account funds planning, 
engineering and design, data collection, interagency 
coordination and research. This proposal would allow the 
Administration to fund only priority, high-performing projects 
and not lower-performing projects that increase the Corps 
backlog of projects awaiting construction.

                                  
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