[Senate Hearing 108-]
[From the U.S. Government Publishing Office]
DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND
INDEPENDENT AGENCIES APPROPRIATIONS FOR FISCAL YEAR 2004
----------
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
MATERIAL SUBMITTED BY AGENCIES NOT APPEARING FOR FORMAL HEARINGS
[Clerk's Note.--The following agencies of the Subcommittee
on VA, HUD and Independent Agencies did not appear before the
subcommittee this year. Chairman Bond requested these agencies
to submit testimony in support of their fiscal year 2004 budget
request. Those statements submitted by the chairman follow:]
NATIONAL CREDIT UNION ADMINISTRATION
PREPARED STATEMENT OF THE HONORABLE DENNIS DOLLAR, CHAIRMAN
Mr. Chairman, Ranking Member Mikulski, and Members of the
Subcommittee. As Chairman of the National Credit Union Administration
(NCUA), I am pleased to submit testimony that presents NCUA's request
for fiscal year 2004 funding of the Community Development Revolving
Loan Fund and to request $1.5 billion in fiscal year 2004 borrowing
authority for our Central Liquidity Facility (CLF), and slightly
increased CLF operational expenses for the year.
I will begin by discussing the Central Liquidity Facility.
NATIONAL CREDIT UNION ADMINISTRATION CENTRAL LIQUIDITY FACILITY
Introduction
The National Credit Union Administration Central Liquidity Facility
(CLF) was created by the National Credit Union Administration Central
Liquidity Facility Act (Public Law 95-630, Title XVIII, 12 U.S.C. 1795,
et seq.). The CLF is a mixed ownership Government corporation managed
by the National Credit Union Administration Board. It is owned by its
member credit unions who contribute all of the capital by the purchase
of stock. The CLF became operational on October 1, 1979.
The purpose of the CLF is to improve general financial stability by
meeting the liquidity needs of credit unions and thereby encourage
savings, support consumer and mortgage lending, and provide basic
financial resources to all segments of the economy. To accomplish this
purpose, member credit unions invest in the CLF through the purchase of
stock, which is used for investment purposes and the funding of some
lending activity. The proceeds of borrowed funds from the Federal
Financing Bank are used to match fund significant loan requests from
member credit unions.
In addition to serving its direct members, the CLF complements the
organizational structure of the U.S. credit union financial system by
working with its agent members that are corporate credit unions acting
as agents of the CLF on behalf of their natural person credit union
membership. This agent framework consists of a private financial
network of 33 state and federally chartered corporate credit unions
with approximately $67.1 billion in assets. The corporate credit union
network provides operational and correspondent services, investment
products and advice, and short-term loans to approximately 9,782
natural person credit unions members. The CLF provides this network
with assurance that if temporary liquidity shortages or public
confidence issues arise due to external events or internal problems,
funds are available to meet abnormal savings outflow. By being a
specialized lender housed within the NCUA, the CLF has the ability to
draw upon the supervisory and insurance resources of the Agency.
However, CLF assistance is generally a secondary source of funds after
the corporate system or other sources of credit have been utilized.
Often the CLF is used when other credit sources have been unable to
provide the appropriate terms and conditions required in a specific
situation.
The borrowings of the CLF have the ``full faith and credit'' of the
United States government. The Federal Financing Bank of the U.S.
Treasury is available as a source for the CLF to fund its lending
programs. The CLF is financially self-supporting and does not use
government funds to support any of its administrative and operational
expenses.
Lending Activities
Loans are available to credit unions directly from the CLF or
through its agent (corporate credit union) members. Credit unions rely
on market sources to meet their demands for funds. The CLF normally is
not an active participant in the on-going daily operations of this
system. Rather its role is to be available when unexpected, unusual, or
extreme events cause temporary shortages of funds. If not handled
immediately, these shortages could lead to a larger confidence crisis
in individual credit unions or even the system as a whole. Because of
its knowledge of credit unions and its immediate access to the
supervisory information of NCUA, the CLF exercises a vital role in
maintaining member and public confidence in the health of the U.S.
credit union financial system.
Factors Influencing Credit Union Borrowing Demand
Under the Federal Credit Union Act, the Central Liquidity Facility
is intended to address unusual or unpredictable events that may impact
the liquidity needs of credit unions. Since these events are not
generally foreseen, it is extremely difficult to forecast potential
loan demand. Throughout the history of the Central Liquidity Facility,
loan demand has widely fluctuated in both volume and dollar amount.
The CLF is authorized by statute to borrow from any source up to
twelve times its subscribed capital stock and surplus. Prior to fiscal
year 2001, with the exception of the Y2K-transition period, Congress
restricted the CLF's borrowing limit to $600 million through the annual
appropriations process. For fiscal year 2001, the traditional $600
million cap was increased to $1.5 billion. The $1.5 billion borrowing
limit was again approved for fiscal years 2002 and 2003. The
continuation of the $1.5 cap for fiscal year 2004 will further assure
that the CLF continues as a reliable, efficient backup liquidity source
in times of need.
It is important to note that Central Liquidity Facility loans are
not used to increase loan or investment volumes, because by statute,
the proceeds from Central Liquidity Facility loans cannot be used to
expand credit union portfolios. Rather, the funds are advanced strictly
to support the purpose stated in the Federal Credit Union Act--credit
union liquidity needs--and in response to circumstances dictated by
market events.
Administrative Expenses
Total operating expenses for fiscal year 2002 were $208,000, below
the budget limitation of $309,000. Expenses were under budget in 2002
due to two factors; (1) a brief vacancy in the NCUA Board in the first
quarter (2) travel expenses were not incurred as anticipated.
Total operating expenses for fiscal year 2003 are projected to be
within our budget limitation of $309,000. In fiscal year 2003, pay and
related benefits are higher than 2002 due to pay comparability and
unknown contingencies.
For fiscal year 2004, the Central Liquidity Facility is requesting
an administrative expense limitation of $310,000. This figure is
slightly higher than the previous year due to a change in pay and
benefits and unknown contingencies. Expenses for fiscal year 2003 are
not formulated or approved by the NCUA Board until November 2003.
Accordingly, fiscal year 2004 expenses are estimated with inflationary
pressures, known pay adjustments, and unknown contingencies.
Additional Background
Credit unions manage liquidity through a dynamic asset and
liability management process. When on-hand liquidity is low, credit
unions must increasingly utilize borrowed funds from third-party
providers to maintain an appropriate balance between liquidity and
sound asset/liability positions. The CLF provides a measure of
stability in times of limited liquidity by ensuring a back-up source of
funds for institutions that experience a sudden or unexpected shortage
that cannot adequately be met by advances from primary funding sources.
Two ratios that provide information about relative liquidity are the
loan to share ratio and the liquid asset ratio. Liquid assets are
defined as all investments less than one year plus all cash on hand.
Managing liquidity risk is a major priority for credit unions and has
become an increasingly important risk issue in the past decade as the
charts below indicate.
Chart 1 shows the ratio of loans to shares in all federally insured
credit unions. As the ratio of loans to shares increases, the amount of
funds maintained in short-term liquid investments declines. Liquidity
risk has increased on average in the past decade as on-hand liquidity
in federally insured credit unions gradually declined due to increased
lending. A substantial inflow of shares during 2002 reduced the ratio
from the Yearend 2001 high of 73.8 percent down to a Yearend 2002 level
of 70.8 percent. Liquidity risk management remains a significant
obligation for credit unions.
Chart 2 shows the ratio of liquid assets to total assets in all
federally insured credit unions. As this ratio decreases, liquidity
risk and the potential need for borrowed funds conversely increases.
Credit unions utilize various market sources for funding needs
including the repurchase market, correspondent relationships with
corporate credit unions and other financial institutions, and, to a
growing extent, membership in the Federal Home Loan Bank system. CLF
serves as a back-up source of liquidity when an unexpected need for
funds arises and primary sources are not available.
Explanation of Obligations by Object Class
--Personnel Compensation represents the estimated salary cost of 1.5
permanent full-time employees on duty during fiscal year 2004.
--Employees Benefits includes health benefits, government life
insurance, miscellaneous cash awards, and change of station
real estate differential.
--Travel and Transportation represents travel expenses for CLF staff.
--Communications, Utilities, and Other Rent represents estimated rent
paid to the agency for office space, as well as telephone and
postage expenses.
--Printing and Reproduction represents costs primarily associated
with the Annual Report. This expense category will also include
minor costs associated with basic forms, statements, and
notices sent to members.
--Other Services represents payroll processing fees, training, and
reimbursement to the agency for Board and staff payroll.
--Supplies and Materials represents computer paper, visual aids,
educational supplies, and miscellaneous supplies for the CLF,
its Agents, and sponsors of training seminars.
--Investments are purchases of new investments during the fiscal
year.
--Dividends are the cost of dividends paid to members of the
Facility.
The CLF continues to experience infrequent demand for liquidity
loans from its member credit unions. This is due, in no small part, to
the strong financial position of credit unions and the ample levels of
on-hand liquidity maintained during the 1990s. This is not to say,
however, that credit unions are not in need of a special purpose
liquidity lender. The CLF is a very important resource for credit
unions that experience an unexpected need for liquidity, especially
when primary funding sources are inadequate or unavailable.
We cannot foresee the exact circumstances that might necessitate a
broad-based need for CLF lending but we are dedicated to the principle
that we must be ready and able to fulfill that purpose; a purpose
established by Congress when it created the Facility. Liquidity remains
an important priority. Like all depository institutions, credit unions
are forced to borrow if their on-hand supply of liquidity is depleted
beyond the level of current funding obligations. Credit unions do plan
for such borrowing but there are times when contingency funding
arrangements are potentially inadequate. Such times call for a
responsive CLF.
Whether it lends on an isolated basis or whether it is called upon
to address a more widespread or even systemic demand for loans, the CLF
is an efficient, effective, and low cost facility that is well adapted
to meet the unique needs of its member credit unions.
NATIONAL CREDIT UNION ADMINISTRATION COMMUNITY DEVELOPMENT REVOLVING
LOAN FUND
Turning to another subject, I would like to thank the Subcommittee
for continuing its support of NCUA's Community Development Revolving
Loan Fund (CDRLF).
Congress established the CDRLF in 1979, through an initial $6
million appropriation to assist officially designated ``low-income''
credit unions in their efforts to provide basic financial service and
products to underserved communities. The credit unions participating in
the CDRLF programs provide underserved communities with access to a
variety of financial services and products which include basic savings
and share draft accounts, home and car loans, and start-up
entrepreneurial capital for small businesses.
Over the years, Congress has increased the number of dollars
available for CDRLF loans to $13 million. For more than 13 years, NCUA
has successfully administered the revolving loan program, providing
more than 217 loans totaling $32.8 million. And, in 1992, the NCUA
Board began funding technical assistance grants by using the interest
generated from the CDRLF loans. In fiscal year 2001, Congress
recognized the success of the grants by reserving certain funds
specifically for this part of the CDRLF program. To date, the CDRLF
technical assistance grant program has provided more than 1,000 grants
totaling $2.4 million.
NCUA remains committed in our efforts to promote and facilitate the
extension of affordable financial services to individuals and
communities throughout America as demonstrated by the implementation of
the agency's successful Access Across America initiative. The CDRLF
plays a vital role in the success of Access Across America, which is
designed to reach out to underserved communities and create economic
empowerment for people from all walks of life. Low-income designated
credit unions use the loans to further community development by
providing funding for member loan demand, additional member services,
and increased credit union capacity to serve members that has resulted
in the overall improvement of the financial condition of low-income
credit union members. The grants are used for verifiable and need-based
technical assistance purposes by low-income designated credit unions.
In 2002, Access Across America proved to be a very successful
initiative with over 23.5 million Americans living in CDFI designated
underserved areas becoming eligible for credit union service. In many
instances, residents of these underserved areas often find themselves
at the mercy of higher-cost outlets such as pawnshops, check-cashing
stores, and rent-to-own companies in the absence of an affordable
financial alternative.
In 2002, NCUA received requests for loans in the amount of
$7,007,000 and were able to approve $2,329,000. In addition, NCUA
distributed $664,314 in technical assistance grants after receiving
requests for $1,618,843. Unfortunately, due to limited resources, NCUA
was forced to decline requests for more than $950,000 in technical
assistance grants that could have been used to further the availability
of much needed services and products through enhanced technology by
these low-income designated credit unions, the overwhelming majority of
which are smaller and challenged by the costs of advancing technology
in the delivery of financial services.
As stated earlier, the technical assistance grant program had been
funded primarily through its history by the earnings generated from the
interest charged for the CDRLF loans. Because CDRLF loans are low
interest--the current interest rate is 1 percent--the earnings
generated are insufficient to meet all the technical assistance
requests. NCUA accepts applications for loans and grants continuously
through the year, and we expect a steady pace for requests for the
remainder of 2003.
The NCUA Board constantly struggles with the need to keep loan
interest rates low and the need to generate interest income in order to
be able to provide additional technical assistance. The funds allocated
specifically for technical assistance grants over the past two years
have greatly enhanced our efforts to provide technical assistance to
low-income credit unions. A survey completed in May 2001 found that
low-income designated credit unions that receive CDRLF assistance
demonstrated the following results:
--Used the program to make additional funds available to meet
community loan demands and improve financial services to
members,
--Experienced significant growth,
--Stimulated economic activities in their communities, and
--Increased funding for these institutions from other sources.
NCUA firmly believes that, based upon the amount of loan and
technical assistance grant applications where the needs were unable to
be met last year, an increase of an additional $1 million over last
year's funding level could provide the CDRLF program even greater
ability to further the growth and long-term viability of credit unions
in low-income and underserved areas. Access to affordable financial
services and products can provide these communities with a much needed
and viable alternative to check cashers, pawn shops, and title loan
companies which often charge exorbitant rates and fees for credit in
many low-income areas. By providing an alternative to higher-cost
lenders, credit unions play a significant and meaningful role in
helping residents keep more of their money in their communities and
households. The CDRLF program furthers this worthwhile public policy
goal, and NCUA values the strong support this Subcommittee has provided
to this program over the years. We look forward to working with you
again this year to continue the CDRLF program and further enhance its
effectiveness.
Finally, I would like to briefly summarize the current condition of
credit unions and the National Credit Union Share Insurance Fund
(NCUSIF). The U.S. credit union system continues to be in excellent
health. Credit union share growth in 2002 was a significant 15.1
percent and assets increased 11.1 percent to $557 billion. Net-worth in
federally insured credit unions at the end of 2002 stood at 10.7
percent and the number of problem credit unions remains at historical
lows. These figures demonstrate the continued overall safety and
soundness of the credit union system.
In summary, the credit union industry remains in excellent
condition. NCUA greatly appreciates the Subcommittee's continued
support of our efforts to keep credit unions safe and sound, enhance
credit union liquidity, and provide needed assistance through loans and
grants to low-income credit unions with verifiable needs.
______
U.S. CHEMICAL SAFETY AND HAZARD INVESTIGATION BOARD
PREPARED STATEMENT OF CAROLYN W. MERRITT, CHAIRMAN AND CHIEF EXECUTIVE
OFFICER
Mr. Chairman, Senator Mikulski, and members of the Subcommittee,
thank you for the opportunity to present the U.S. Chemical Safety
Board's budget proposal for 2004.
In the last six months, the Board has completed four major
investigations and we plan to finish five more by the end of the fiscal
year. We have more staff deployed than ever before and now have ten
investigations underway, from Houston to New York City, from North
Carolina to St. Louis.
Next year, with your continued support, we plan to complete 12
investigations--that's three to four times what the agency could do
only a couple of years ago.
The CSB is a small agency just 37 people, mostly scientists,
engineers, and other investigators. But we do what no other
organization does: when a major chemical accident occurs, we
immediately send a team of experts to conduct an independent,
scientific investigation of the root causes of that accident. We don't
just determine what happened, we determine why.
Our purpose is to prevent future accidents, not to issue fines or
citations. Once we have established the root causes of accidents, we
report our findings directly to the communities affected and the
nation, and we issue recommendations to industry and government to
improve safety. We then press for full implementation of these
recommended safety actions.
No other organization has our unique mission to inform the public
and industry about chemical accident hazards. Tragically, at no time in
recent years has there been a greater need for an agency like ours.
This winter has seen a rash of serious chemical accidents. Among our
ten active cases, the Board is investigating major plant explosions in
Kinston, North Carolina; Corbin, Kentucky; and Rosharon, Texas. These
explosions have inflicted many deaths and injuries, imperiled hundreds
of American jobs, and disrupted regional economies.
By bringing to light all the causes of chemical accidents--
including hazards that are unknown, forgotten, or underestimated--CSB
is in the forefront of building a safer industry. Let me add that
chemical accidents are not just a problem of the chemical industry--
many companies that simply use or handle chemicals experience these
accidents as well. For example, we are currently investigating
accidents at a medical device company, an acoustic insulation
manufacturer, and an architectural sign company--just to name a few.
We are here asking for a modest increase of $1 million over our
2003 base budget. The Committee gave us adequate resources last year to
hire seven new accident investigators, and I thank you for it. We now
need additional funds to fully utilize our staff and maintain our
increased productivity into next year.
UNPRECEDENTED LEVEL OF MISSION ACCOMPLISHMENT
Since last year, the Board has completed five major accident
investigations. We have ten more investigations currently underway. A
summary of the recently completed investigations follows.
COMPLETED INVESTIGATIONS
BP Amoco (Augusta, GA)
On March 13, 2001, three workers were killed as they opened a
process vessel containing hot plastic at the BP Amoco (now Solvay
Advanced Polymers LLC) plant in Augusta, Georgia. The workers were
killed when the partially unbolted cover blew off the vessel, expelling
molten plastic. The Board report, issued in May 2002, found that the
accident could have been avoided if the firm had instituted a program
to better understand the chemical reaction that caused pressure
accumulation within the process vessel. The Board issued eight specific
recommendations to the company to prevent a similar incident in the
future.
Motiva Enterprises (Delaware City, DE)
On July 17, 2001, one worker was killed and eight others were
injured when a sulfuric acid storage tank exploded and collapsed at the
Motiva Enterprises LLC Delaware City Refinery. The explosion caused a
massive release of sulfuric acid to the environment. The Board found
that a spark from welding equipment had ignited flammable vapors from
the storage tank, which was inadequately maintained and had holes
rusted through its roof.
The Board identified significant deficiencies in Motiva's
mechanical integrity program--the program responsible for monitoring
and preventing corrosion of the storage tank. Among the recommendations
from this accident, the Board urged OSHA to regulate the safety of
atmospheric storage tanks when they are connected to hazardous
manufacturing processes.
The Board got strong support for its investigation and its
recommendations from the entire Delaware Congressional delegation. Rep.
Michael Castle and Sen. Joseph Biden both spoke forcefully at our
public meeting in Wilmington on August 28, 2002, and they joined with
Sen. Tom Carper in requesting action ``as swiftly as possible'' from
OSHA Assistant Secretary John Henshaw. ``Expanding coverage to include
aboveground storage tanks will go a long way in reaching our common
goal of reducing catastrophic events,'' they wrote in a letter to
Secretary Henshaw dated February 25, 2003.
Reactive Hazards (NJ, TX, and nationwide)
Following the final CSB report in August 2000 on an incident at the
Morton International plant in Paterson, New Jersey, the Board began an
intensive study of 167 serious reactive chemical incidents from 1980 to
2001. On May 30, 2002, the Board held a hearing in Paterson to review
the findings of the nationwide study. The Board found serious gaps in
both industry practice and government regulations to control reactive
hazards. Senator Corzine and Senator Lautenberg both spoke at the
meeting and supported our investigative findings on this subject.
On September 17, 2002, in Houston, Texas, the Board issued its
final report from the reactive hazards investigation. The Board
recommended that OSHA amend its Process Safety Management standard to
achieve more comprehensive control of reactive hazards. The Board also
called on EPA to revise its chemical accident prevention program for
the same purpose. A further recommendation requested the National
Institute of Standards and Technology to develop a publicly available
database of reactive hazard test information. There were also
recommendations directed to several trade associations, unions, and
other organizations.
Meanwhile, serious reactive incidents continue to occur around the
country. CSB is conducting full investigations of two such incidents,
in Pascagoula, MS, and Cranston, RI, and preparing a case study of a
third recent incident in Ohio. All three processes where these
accidents occurred were exempt from coverage under the OSHA and EPA
process safety rules.
Georgia Pacific (Pennington, AL)
On January 11, 2002, a hydrogen sulfide gas leak at the Georgia
Pacific Naheola paper mill killed two workers and injured a dozen
others. On November 20, 2002, the Board held a public meeting and
issued its final report. The Board completed this investigation and
issued its recommendations in less than a year.
The Board concluded that plant management had not followed good
engineering and process safety practices when they earlier connected a
drain from a truck unloading area into an acidic process sewer. On the
day of the incident, sodium hydrosulfide, a process chemical that had
spilled in the unloading area, reacted to release deadly hydrogen
sulfide gas when it contacted acidic material in the sewer. The toxic
gas vented from the sewer through a nearby fiberglass manhole cover and
engulfed the workers. The Board recommended that Georgia-Pacific
Corporation review sewer system safety to prevent the inadvertent
mixing of potentially reactive chemicals and also identify plant areas
that may be at risk for hydrogen sulfide release.
Third Coast Industries (Pearland, TX)
A massive fire, which broke out in the early morning hours of May
1, 2002, destroyed the Third Coast Industries blending facility south
of Houston, in a blaze that consumed 1.2 million gallons of combustible
and flammable liquids and lasted for more than 24 hours. Approximately
100 nearby residents were evacuated from their homes while the fire was
allowed to burn itself out. The plant had no supply of fire water to
aid emergency responders. On March 6, 2003, the Board issued its final
report on the accident at a public meeting in Houston. The Board found
that better fire control systems could have spared the plant from total
destruction and minimized the impact on nearby residents and
businesses. Most widely used fire codes have provisions that could have
greatly mitigated the spread of the fire at Third Coast, but where the
plant is located in unincorporated Brazoria County there is no
mandatory fire code. The Board recommended that the County adopt such a
fire code, and the County did so a week after of the Board's
recommendation.
CURRENT INVESTIGATIONS
Kaltech Industries (New York, NY)
The CSB is investigating a building explosion that injured dozens
on April 26, 2002, in the Chelsea neighborhood of downtown New York.
The explosion occurred at a company, Kaltech Industries, that
manufactures architectural signs. A number of members of the public
were among the injured. Preliminary findings indicate that the
explosion occurred as a result of an uncontrolled chemical reaction
during waste mixing operations. A public hearing on the issue was held
April 16, 2003, in New York City, and a final report is expected in
June 2003.
DPC Enterprises (Festus, MO)
On August 14, 2002, approximately 48,000 pounds of toxic chlorine
gas were released from a stationary rail car being unloaded at the DPC
Enterprises plant in Festus, south of St. Louis. The leak resulted from
the rupture of an improperly constructed transfer hose and subsequent
failure of several emergency shutdown devices. On December 4, the Board
issued a safety advisory to chlorine users nationwide to verify the
materials of construction of chlorine transfer hoses to prevent future
gas leaks. The Board's final report on the DPC incident is expected in
May 2003.
First Chemical (Pascagoula, MS)
A violent explosion blew apart a large distillation tower at the
chemical producer on the morning of October 13, 2002. CSB staff noted
that the incident was a ``close call'' in that falling metal from the
explosion could have caused the release of deadly gases had it struck
certain nearby storage tanks. Shrapnel did penetrate one nitrotoluene
storage tank at the site, igniting a fire that burned for several
hours. The CSB conducted a well-attended community meeting on the
significance of this case at Pascagoula City Hall on January 15. A
final report is expected later this year.
Catalyst Systems (Gnadenhutten, OH)
On January 2, 2003, a violent explosion destroyed part of Catalyst
Systems, a manufacturer of curing agents for automotive body fillers,
located south of Cleveland. The explosion originated in a dryer used to
concentrate benzoyl peroxide, a reactive chemical of the organic
peroxide family. The blast caused one injury but could have been far
worse had not most workers been at lunch when it occurred. CSB
investigators are preparing a case study on this serious reactive
chemical incident.
BLSR Operating (Rosharon, TX)
This facility, located south of Houston, processes oil and gas
field wastes, recovering petroleum and disposing of waste water. On
January 13, 2003, two trucks were unloading gas field wastes into an
open trench, when suddenly their diesel engines began to race (a sign
of a flammable atmosphere). Moments later a flash fire occurred,
engulfing the trucks, fatally burning three workers, and injuring
several others. The Board is investigating this incident, looking at
how potentially flammable gas field wastes are managed for safety. A
final report will be issued this summer.
West Pharmaceuticals (Kinston, NC)
On January 29, 2003, a massive explosion destroyed much of the West
Pharmaceuticals plant that produced molded rubber medical products. A
total of six people have died as the result of the blast, including
several who initially survived only to die later from critical burn
injuries. Others remain hospitalized. The shockwave from the explosion
shattered windows hundreds of feet away and hurled debris up to two
miles from the blast site. Damage to the plant was estimated at $150
million, and hundreds of jobs were put in jeopardy. A large team of CSB
investigators deployed immediately to the site, arriving the evening of
the explosion. CSB investigators rapidly identified the likelihood of a
chemical dust explosion and began a comprehensive investigation of the
root causes. The Board is planning to hold a community briefing in
Kinston this spring.
Technic Inc. (Cranston, RI)
A February 7 explosion at Technic Inc., a manufacturer of metal
plating chemicals, sent a number of workers to the hospital.
Fortunately, only one worker was seriously injured, but his injuries
were life-threatening. A CSB investigative team was dispatched and
identified the possibility of an uncontrolled chemical reaction within
the waste vent piping system attached to several chemical reactors. The
team continues to investigate the root causes of this accident, which
is another example of a serious reactive chemical accident that
originated within a waste disposal system.
CTA Acoustics (Corbin, KY)
During a brief process shutdown on the morning of February 20, a
powerful explosion ripped through the CTA Acoustics plant in
southeastern Kentucky. Seven people have died from burns received
during the explosion, which CSB investigators believe likely involved
combustible chemical dust from the process used to make fiberglass
automotive insulation. Two workers remain in critical condition. The
blast badly damaged the plant, halting production at several North
American Ford manufacturing sites, idling more than 10,000 workers. CSB
staff are continuing to investigate at the CTA plant, conducting
interviews, gathering samples, and mapping blast damage. The CSB will
hold a community meeting in the Corbin area within the next several
months.
Hazard Study--Toxic Gas Emissions (Cincinnati, OH, and nationwide)
Following its investigation of the fatal Georgia Pacific hydrogen
sulfide incident, the CSB initiated a follow-up study to look more
broadly at the problem of toxic gases evolving from waste disposal
systems. On December 11, 2002, a few weeks after this study was
announced, a serious incident occurred at Environmental Enterprises in
Cincinnati, OH, where a worker was overcome by the same gas, hydrogen
sulfide, from a waste water treatment system. CSB staff are now
reviewing records from around the country to determine how prevalent
these incidents are, and their report is expected later in 2003.
Hazard Study--Sodium Hydrosulfide Handling (nationwide)
As another outgrowth of its Georgia Pacific investigation, CSB
staff are conducting a review of other incidents involving sodium
hydrosulfide, the chemical which reacted in the Georgia Pacific sewer
to produce the toxic hydrogen sulfide. Evidence indicates that other
fatalities have occurred from the interaction of sodium hydrosulfide
with acid; this study is examining the sufficiency of current safe
handling practices for this substance.
RECOMMENDATIONS PROGRAM LAUNCHED
Recommendations are CSB's principal tool for promoting chemical
safety. Each recommendation has one or more specific recipients, who
are the parties best able to carry out the recommended action to
improve safety. Once CSB has issued a recommendation, the CSB
recommendations staff encourages implementation and tracks compliance.
In fiscal year 2002, the CSB issued a total of 67 recommendations and
successfully closed 38 recommendations from prior year investigations.
The CSB also began posting status information on all recommendations on
our website.
The Board aims for 80 percent acceptance of our recommendations
over a period of time. In the fifth year of our existence, we are well
on the way to achieving that goal. We have received excellent
cooperation in virtually every case, and have received only two
negative responses to the 141 recommendations that have been issued. On
the other hand, we have received numerous responses indicating positive
actions underway or planned.
Here are some recent examples of safety accomplishments made as a
specific result of CSB recommendations:
--OSHA issued a Technical Information Bulletin on the hazards
associated with temporary work enclosures (CSB Union Carbide
investigation);
--The Institute of Makers of Explosives (IME) developed guidelines
for the safe reclamation of explosive materials and the proper
training of explosives workers (CSB Sierra Chemical
investigation);
--The American Petroleum Institute developed its first recommended
practices for the safe operation of onshore oil and gas
production facilities, including worker training, process
design, and work practices (CSB Sonat investigation);
--The Morton International Chemical Company has taken actions to
improve reactive chemical safety at its plants, including re-
evaluating hazards, adding safety alarms, revising operating
procedures, and investigating near-miss events (CSB Morton
investigation);
--The National Propane Gas Association and the Fire Service Institute
of Iowa revised their fire fighting training materials to
include appropriate precautionary measures for flammable gas
explosions (CSB Herrig investigation);
--Brazoria County, Texas, adopted a county-wide fire code for the
first time following the Board's Third Coast Packaging
investigation.
OUTREACH AND DATA EFFORTS REFOCUSED
Responding to recommendations from the Committee and the Inspector
General, the Board restructured the agency's outreach efforts to ensure
they are cost-effective and help to advance the agency's statutory
mission to prevent accidents. Plans for a freestanding outreach office
with up to five FTEs were cancelled, with most positions reassigned to
investigations. Instead the agency has focused on making sure that key
safety information from its own investigations becomes widely known. In
lieu of a freestanding outreach office, the agency has established a
small coordinating committee of existing staff who ensure that outreach
activities are directly related to getting CSB safety recommendations
adopted.
The Board also withdrew a strategic goal to develop its own
accident data system and instead convened a data roundtable discussion
in November 2002, jointly with EPA and OSHA. The roundtable resulted in
broad agreement on measures to improve EPA's data collection program--
measures that will benefit CSB and other government agencies that need
to look at accident rates. In addition, CSB continues to work with
other agencies, such as the Agency for Toxic Substances and Disease
Registry, to better utilize other federal incident data systems.
The agency has also begun a highly successful program of public and
community meetings in connection with our accident investigations. We
have held public meetings in Paterson, NJ; Wilmington, DE; Festus, MO;
Houston, TX (twice); and Pascagoula, MS. These meetings are held in
communities where accidents have occurred, and most are also broadcast
over the Internet. The meetings have been well attended and have drawn
sizeable audiences of Internet viewers, including safety professionals
who work in similar industries. We use these public meetings to discuss
and release our investigative findings and recommendations and also to
hear specific community concerns about chemical accident hazards.
MANAGEMENT IMPROVEMENTS
We made a number of management improvements during the past year,
in part as an outgrowth of work by the CSB Inspector General (IG). Ten
recommendations from a March 2002 IG report were all successfully
implemented by the agency by the end of the September. Among the
changes, CSB developed new legal procedures for handling vacancies in
the Chair; expanded delegation to the COO and the career staff;
improved tracking of staff time and resources; and streamlined its
strategic goals and office structure. CSB also successfully petitioned
OPM for special hiring authority to fill numerous vacancies in its
investigations and recommendations programs. Armed with this temporary
authority we hired seven new investigators and specialists by the end
of the fiscal year.
In June 2002, the agency recruited its first full-time COO in more
than two years. This action relieved the General Counsel of collateral
responsibilities and provided a single, full-time manager for day-to-
day operations. CSB also accepted six additional IG recommendations
related to personnel management and has recently hired a full-time
human resources manager to oversee this important function.
With the swearing in of a new Chairman, a fifth Board member, and a
full-time Chief Operating Officer, the agency's management has reached
full operating strength for the first time in its history. As one
senior industry safety official wrote the Board recently, ``I think the
CSB has made truly exceptional progress . . . to a group publishing
excellent investigation reports, facilitating discussions on issues
facing the chemical industry, etc. . . . You have arrived . . .
[emphasis in original]''
FISCAL YEAR 2004 BUDGET REQUEST
This Committee has urged the Board to undertake more investigations
and hazard studies, and we want to produce more work. We are requesting
a budget increase of $1 million to provide adequate resources for our
expanded investigative staff to do the work that Congress wants.
With almost 40 personnel--mostly engineers, scientists, and
technical specialists--the CSB is poised to achieve its statutory
mission of protecting lives and property by investigating and
preventing chemical accidents, and we are already producing significant
results. The agency has pledged to produce up to 12 investigation
reports in fiscal year 2004, up from a rate of just three a year in
fiscal year 2002.
The expansion of the investigations program and the hiring of
additional investigators have had a significant budgetary impact. In
addition, we now have major investigations underway in North Carolina
and Kentucky, on a scale that is unprecedented for our agency. The
public expects CSB to conduct prompt, thorough, authoritative
investigations of both accidents. We have significant, unavoidable
expenses for contracting with outside experts to assist those
investigations--such as dust explosion experts--expenses that could not
possibly have been anticipated in our fiscal year 2003 budget.
During both fiscal year 2001 and 2002, CSB spent less than its full
annual appropriation, resulting in unspent ``carryover'' balances at
the end of each fiscal year. For example, at the end of fiscal year
2002, CSB had $1.4 million in unspent two-year funds, out of an
appropriation of $7.85 million.
However, our expenses for fiscal year 2003 will total an estimated
$8.6 million, including current year appropriations, carryover funds,
and prepaid contract items. By comparison, the agency's fiscal year
2003 appropriation is only $7.85 million, of which $1.4 million must be
drawn from previous carryover funds. Because we pre-funded certain
fiscal year 2003 expenses during last year, we can currently function
despite the apparent imbalance between our current expenses and our
fiscal year 2003 appropriation.
Because of the agency's financial condition in fiscal year 2003,
however, the CSB will have no available carryover moneys entering
fiscal year 2004. In addition, we lack the financial means to prefund
fiscal year 2004 expenses to any significant extent. Thus at the
beginning of fiscal year 2004, CSB will need to be funded entirely from
new appropriations.
The Board plans to increase output to 12 investigations and studies
per year, which will impose additional travel and contract costs next
year. Likewise we also intend to continue our highly successful program
of briefings and Board meetings conducted outside of Washington, in the
field. Information included with the agency's budget request shows that
if the CSB is funded at the $8 million level in fiscal year 2004, we
will face an immediate shortfall on October 1, 2003, of almost $1
million per annum, which will have a serious adverse effect on our
operations and our ability to retain needed staff.
In fiscal year 2004 the Board will have a full complement of Board
members and an adequate staff to meet our objectives. We ask the
Committee's support to let us continue to accomplish the mission
Congress gave us--to protect workers, the public, and the environment
from chemical accidents.
______
U.S. COURT OF APPEALS FOR VETERANS CLAIMS
PREPARED STATEMENT OF HONORABLE KENNETH B. KRAMER, CHIEF JUDGE
Mr. Chairman and Distinguished Members of the Committee: On behalf
of the Court, I appreciate the opportunity to present for your
consideration the fiscal year 2004 budget request of $16,220,000 for
the United States Court of Appeals for Veterans Claims. With our nation
at war, the Court is even more committed to ensuring that our veterans
and dependents have a justice system that affords effective and timely
review of the denial by the Department of Veterans Affairs (VA) of
their claims for benefits based on and provided by a grateful nation
because of their service and sacrifices.
The Court's fiscal year 2004 budget request includes $1,175,000
requested by the Veterans Consortium Pro Bono Program (Representation
Program). In accordance with practice since fiscal year 1997, the
Representation Program has provided its own budget request, which the
Court has forwarded (without comment) along with the Court's budget
request.
The appropriation to the Court for fiscal year 2003 was $14,326,000
(before the .65 percent rescission reduced it to $14,232,881), of which
$1,045,000 was the amount requested by the Representation Program. Our
fiscal year 2004 budget request reflects an increase over the budget
authority for Court operations for fiscal year 2003. Three factors
account for virtually the entire increase in addition to the $130,000
increase sought by the Representation Program. The first reflects a
budgeted pay raise for all nonjudicial Court personnel consistent with
that generally anticipated for all Washington, D.C., area government
employees. The second factor is the statutory authorization for a
temporary increase in the number of judges. The third is a request for
earmarked funding for security measures, which the Court is now
withdrawing. I will discuss each of these matters further.
The first significant increase in the Court's budget request for
fiscal year 2004 is in personnel compensation and benefits. As in the
past, in conformance with OMB economic assumptions, we have requested
funding for a pay adjustment for staff (2.0 percent), with no
differentiation between the Economic Cost Indicator and locality pay,
including necessary funding for benefits.
The second important factor is the result of the enactment of
Public Law No. 107-103 (Dec. 27, 2001), calling for the temporary
addition of two judges. Since its inception, the Court has been
composed of seven judges, one of whom serves as chief judge; however,
Public Law No. 107-103, temporarily increased the number of judicial
positions from seven to nine. This law was designed to smooth the
transition period when the then five, now four, remaining original
judges would be eligible to retire in a very short span of time; at the
end of that period, in August 2005, the size of the Court will return
to seven judges. We have attempted to budget as prudently as possible
for this temporary judicial increase. Given the uncertainty of the
timing associated with the nominations process, in our fiscal year 2003
budget request we requested funding for one additional chambers; we
have included, as part of the fiscal year 2004 budget request, funding
for a second additional chambers, that is, for $590,000 to provide for
personnel and benefits, office buildout, furnishings, equipment, and
supplies, as well as continuing costs for the operation of the first
additional chambers. Nominations for the two additional judicial
positions are now pending before the Senate Committee on Veterans'
Affairs, along with two nominations to fill the vacancies created by
former Chief Judge Nebeker's retirement in October 2000 and Judge
Holdaway's retirement in November 2002. If both additional judgeships
are filled during fiscal year 2003, we would request reprogramming of
fiscal year 2003 funds to provide immediately for establishing the
second additional chambers, and if necessary seek supplemental funding.
We would then withdraw from our fiscal year 2004 budget request our
funding request for comparable costs associated with establishing an
additional chambers. In addition, the benefits portion continues to
include a Court contribution to the Judicial Retirement System (JRS)
Trust Fund that reflects all participating judges' opting into the JRS
survivor annuity program and the statutory provision anticipating that
all judges--including any appointed as part of the temporary judicial
increase--will ultimately join the Court's JRS.
Not taking into account the new judgeships, the Court's request
proposes no increase in staffing. The Court, as always, will monitor
staffing to ensure that it is kept at the minimum level necessary to
review in a timely fashion the cases brought before the Court. To
provide further background on the workload before the Court, the
Court's caseload history over the past twelve years is summarized in
the following table, which also appears on page 4 of the Court's fiscal
year 2004 Budget Request:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
Year Year Year Year Year Year Year Year Year Year Year Year
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
BVA Total Denials........................... 25,082 10,946 9,734 6,194 6,407 10,444 15,865 15,360 14,881 14,080 8,514 8,606
New Cases to USCAVC......................... 2,223 1,742 1,265 1,142 1,279 1,620 2,229 2,371 2,397 2,442 2,296 2,150
New Cases as a Percent of BVA Denials....... 8.9 15.9 13.0 18.4 20.0 15.0 14.0 15.4 16.1 17.3 27.0 25.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
Appeals to the Court come from the pool of cases in which the Board
of Veterans' Appeals (BVA or Board) has denied some or all benefits
sought by claimants. The Court is also empowered to entertain petitions
for extraordinary relief where the Court action sought would be in aid
of its jurisdiction. As this table shows, the number of appeals and
petitions filed with the Court has held relatively steady, even though
the number of total denials by the Board (the BVA does not publish
statistics on cases with partial denials) has dropped significantly
since passage in November 2000 of the Veterans Claims Assistance Act of
2000 (Public Law No. 106-475) requiring VA to provide more
comprehensive notice and development assistance to VA benefits
claimants. There has been a substantial increase in new case filings
over the last six months. Since September 2002, new case filings have
averaged 242 per month. If this trend continues throughout fiscal year
2003, the Court will have the highest number of new cases in its
history for a 12-month period.
Furthermore, since Congress extended the Equal Access to Justice
Act (EAJA) to the Court in 1992, there has been a substantial number of
EAJA applications. The case-filing figures provided in the table,
above, however, do not reflect the number of EAJA applications filed
and EAJA cases pending, even though these applications initiate a
separate proceeding requiring Court action. In fiscal year 2002, the
Court acted on 1,104 applications, up from 801 applications in 2001 and
776 applications in 2000. The potential availability of EAJA fees has
encouraged a greater number of attorneys to develop expertise in
veterans benefits law, and the professional assistance of the growing
appellants' (benefits claimants) bar has proven very valuable in
litigation before the Court. However, there is a tradeoff: Some EAJA
applications can demand considerable time because they present very
complex issues, and resolving these issues continues to require
substantial judicial and staff resources. Consequently, processing and
disposing of EAJA applications has become an important workload factor.
In addition to the factors addressed above, a third matter has
contributed to the Court's fiscal year 2004 budget request. Included in
the ``communications, utilities, and miscellaneous charges'' object
category is $281,700 that the Court requested be earmarked for security
enhancement. The Court is mindful, however, of the disfavor expressed,
in H.R. Report No. 107-40 and the Statement of the Managers in the
Conference Report accompanying H.J. Res. 2 (subsequently enacted as
Public Law No. 108-7, hereinafter ``the fiscal year 2003 Appropriations
Act''), for our fiscal year 2003 request for earmarked funds for
security enhancements. Accordingly, we withdraw the request for
earmarked funds for use for security enhancement in fiscal year 2004.
As instructed by the Committee, the Court is working through the
General Services Administration (GSA) in an effort to make arrangements
with the building's owner, from which GSA leases the Court's offices,
for enhanced security to the building. Guards under contract to the
Federal Protective Service (now part of the Department of Homeland
Security) have, since March 5, 2003, been conducting magnetometer and
x-ray screening at the lobby and loading dock and screening vehicles
entering the public parking garage during regular business hours (with
limited guard service in the lobby for extended hours). GSA and the
Court continue to work toward additional security enhancements for the
building. The Court is mindful of the Committee's view that costs for
the garage be shared by those who use the facility.
The Court asks, however, that the Committee consider appropriating
and earmarking $100,000 of these funds for use during fiscal year 2004
for the costs of working through GSA to locate a suitable site and
examine design requirements and other specifications needed for a
veterans justice center (feasibility study). VA, the veterans service
organizations (VSOs), the Representation Program, and a number of other
agencies and organizations involved in legal representation before the
Court have expressed interest in relocating their appellate
practitioners to a veterans justice center. The bar association
continues to support an initiative to house the Court in a veterans
justice center, rather than a commercial office building with
nonfederal tenants and without adequate federal control over security.
The costs of establishing such a center could be comparable to current
annual rental payments by the Court and other federal entities housed
in it. In H.R. Report No. 107-740, incorporated by reference into the
legislative history of the fiscal year 2003 Appropriations Act, the
Committee ``strongly urge[d] the Court'' to continue to work through
GSA to ``come to an agreeable solution'' concerning the security issues
affecting the building where the Court is located. In the event that
there could not be agreement among the GSA, the Court, the building's
owners, and the other tenants, the Committee recommended that ``the
Court look for alternative Federal office space to meet its needs.''
The GSA Public Building Services has expressed a willingness to work
with the Court on this matter, and the earmarked $100,000 would be used
to pay GSA for expenses incurred and passed through to the Court.
According to GSA, that is the estimated cost for a feasibility study
that would include seven major components: (1) Client-requirements
assessment; (2) asset-needs assessment; (3) conceptual development of
alternatives; (4) technical and financial analysis of alternatives; (5)
selection and justification of the preferred alternative; (6)
construction cost estimates of the preferred alternative, separated
into shell and tenant improvement components per the GSA pricing guide;
and (7) delivery schedule and procurement strategy. The GSA feasibility
study would provide the narratives, charts, plans, sketches, diagrams,
and other information needed for an informed decision.
Although not a major factor, a $39,000 increase is reflected in the
request for funding for other services. These services include cross-
servicing for payroll and finance and accounting support from the
Bureau of Public Debt (BPD) and the Department of Agriculture's
National Finance Center, and for court security officers provided
through a contract with the U.S. Marshals Service. In addition, a
$10,000 increase for travel reflects an increase in the cost of travel,
additional judges, and programmed travel by judges to law schools to
conduct oral argument and thereby promote education in veterans' law
(as discussed further in the next paragraph), and for training
associated with the new judicial appointments. Finally, there is an
increase of $12,000 reflecting increased subscription costs and
supplies associated with the anticipated new judges and their staff.
Last year, in my statement in support of the Court's budget request
for fiscal year 2003, I updated you on two new Court initiatives: To
promote study of veterans benefits law in the nation's law schools and
to support practitioners in their effort to organize a voluntary bar
association. The Court has now held oral argument at two area law
schools (Catholic University and Georgetown University), and one of the
schools offered an evening course in veterans benefits law during the
Fall 2002 semester. Later this Spring, the Court will hold oral
argument at another local law school (the University of Baltimore). The
voluntary bar association continues to operate successfully and now has
almost 250 dues-paying members drawn from the appellants' bar, VA,
veterans service organizations, and the Court. As one of its
activities, the bar association has established a law school education
committee, with members from among the Court's practitioners, including
members outside the Washington, D.C., geographic area. These
practitioners are working with law professors and law schools
throughout the country in exploring various means to expose future
attorneys to veterans benefits law.
In conclusion, I appreciate this opportunity to submit this
testimony on the Court's budget request for fiscal year 2004. On behalf
of the judges and staff, I thank you for your past support and
continued assistance. I will be happy to answer any questions that you
might have.
______
DEPARTMENT OF HEALTH AND HUMAN SERVICES
AGENCY FOR TOXIC SUBSTANCES AND DISEASE REGISTRY
PREPARED STATEMENT OF HENRY FALK, M.D., M.P.H., ASSISTANT ADMINISTRATOR
It is a special pleasure to discuss ATSDR's accomplishments and
plans, as this month marks the 20th anniversary of ATSDR's creation. I
am very proud of ATSDR's progress over the past 20 years in advancing
our understanding of the public health impacts of exposure to hazardous
substances and in undertaking activities to prevent and mitigate
disease and other harmful impacts of toxic exposure.
Among the profound changes that have occurred in our country during
those 20 years, I would like to note two in particular that have played
a significant role in shaping ATSDR's development and activities.
First, it has been widely recognized that the problems posed by
hazardous waste sites are more extensive than was understood in the
early years of the Superfund program. The number of hazardous waste
sites in this country is much larger than was once thought. Sites that
present major public health consequences continue to be identified,
most notably asbestos contamination from W.R. Grace's vermiculite mine
in Libby, Montana, a site that was first addressed under Superfund in
1999.
Second, terrorist events and the threat of future terrorist events
have resulted in growing demand for ATSDR's unique experience and
expertise developed over the past 20 years in carrying out mandated
Superfund programs.
Our experience and expertise in chemical toxicology, in emergency
response, and in fostering coordination among public health,
environmental, and emergency response agencies, as well as
organizations at the local, state, and federal levels, is extensive. In
addition, ATSDR has an important role in disseminating critical
information to agencies and organizations with a role in terrorism
preparedness and response.
The President's fiscal year 2004 Budget includes $73 million for
ATSDR. This funding will support the agency's ongoing activities.
Through ever-expanding partnerships with other federal, state,
tribal and local agencies and with private and public interest
organizations, we continue to provide the highest quality services to
the public in both our traditional Superfund programs and in terrorism-
related activities. Innovative partnerships with organizations whose
programs complement those of ATSDR have enabled us to achieve our
public health mission more efficiently and effectively, both through
disseminating critical information and through drawing on the expertise
of others.
During the past year, in addition to ongoing work with the
Environmental Protection Agency (EPA), we have collaborated with a
broad range of agencies and organizations, including the Centers for
Disease Control and Prevention (CDC), the National Institute of
Environmental Health Sciences (NIEHS), the Federal Bureau of
Investigation, the Federal Emergency Management Agency (FEMA), the
Chemical Safety and Hazard Investigation Board, the American Chemistry
Council, colleges and universities, and dozens of state and local
public health organizations.
We have cooperative agreements with 31 state health departments,
under which they conduct health assessments and undertake other
environmental health activities. In addition, we continue to benefit
from ATSDR's longstanding partnerships and programs, such as with the
Minority Health Professions Foundation and its research program, as
well as with a number of universities and state health departments
through ATSDR's Great Lakes Human Health Effects Research Program.
These programs help ATSDR fill the gaps in knowledge about the effects
of hazardous substances on human health.
We continue to leverage technology, including the use of
sophisticated toxicologic, epidemiologic, and environmental data sets
and analytic approaches, to enable us to carry out our mission most
effectively. Geographic information system technology allows us to
layer health, demographic, environmental, and other traditional data
sources to be analyzed. Improved scientific capacity enables us to
track the spread of environmental contamination throughout a community,
to identify geographic areas and facilities of particular concern, and
to identify susceptible populations and potential health effects.
In addition to meeting our mandated Superfund-related obligations,
we also help communities address emergency preparedness and response to
acts of terrorism, while at the same time strengthening preparedness
within ATSDR. Finally, we are pursuing a closer and more collaborative
relationship with CDC as a mechanism for achieving the kind of synergy
that will make us even more responsive and capable as a public health
agency.
This testimony addresses some of the activities that will be
supported under the fiscal year 2004 budget. These activities are
critical to fulfilling our mandates under Superfund and to enhancing
terrorism preparedness.
TRADITIONAL ATSDR SUPERFUND ACTIVITIES
The critical core function of our Agency is to assess the public
health implications of hazardous waste sites and events involving the
emergency release of chemicals. Our public health assessments and
health consultations, as well as many of our health studies and
surveillance programs, are directed to determining whether a site poses
a threat to the public's health and to taking needed actions to protect
public health, working with EPA and states.
A good example of the wide range of site-specific activities
undertaken by ATSDR is our ongoing work in addressing tremolite
asbestos contamination in Libby, Montana.
ATSDR has been working with EPA and with other federal, state, and
local public health agencies to address the health threats posed by
asbestos contamination in Libby. We conducted a medical screening
program that involved testing of over 7,300 residents who were exposed
to asbestos in that community. That program revealed that 18 percent of
those tested have asbestos-related lung abnormalities as shown on chest
x-rays--a much greater rate than exists in the United States as a
whole.
ATSDR is now providing funding and technical assistance to help the
State of Montana implement a follow-up testing program for former
workers, residents, household contacts, and other eligible persons. We
expect the facility for this testing to be operational by the first of
June of this year. A study to determine the rate of abnormalities by
use of computed tomography (CT) scans is ongoing. We worked with the
Health Resources and Services Administration and the Substance Abuse
and Mental Health Services Administration, both agencies of the
Department of Health and Human Services, to establish a community
health clinic in Libby and to provide mental health services to the
Libby community. Such a clinic is especially critical for addressing
the health care needs of the medically uninsured, the underinsured, and
other persons who lack the resources for primary medical care.
We are creating a registry of former workers and their families,
approximately 10,000-15,000 people, to help track health conditions of
these exposed persons and to enable us to provide them any new
information that becomes available as part of an effort to assist in
obtaining optimum medical care and taking preventive actions.
Our work to assess and address the health problems associated with
exposure to asbestos from Libby has expanded to include 244 sites in
the United States that received vermiculite ore from the W.R. Grace
mine in Libby. A map included with this testimony indicates the
distribution of these sites within the United States. We are
coordinating with EPA and other federal, state, and local environmental
and public health agencies to evaluate potential public health impacts
at these sites. At this point, we have focused our efforts on
developing health consultations at 28 priority sites and on working
with 11 state health agencies that are assisting in this effort. We
will begin releasing the reports of these health consultations in the
next couple of months. These 28 sites, which are indicated on a second
map provided with this testimony, were chosen because the exposure of
former workers, their household contacts, and other individuals was
deemed significant enough to warrant further evaluation. The priority
sites include facilities in Beltsville, Maryland; St. Louis, Missouri;
Marysville, Ohio; and Dallas, Texas. As reports on these sites become
available, we will address the need for further ATSDR health
evaluations of former workers or other potentially exposed individuals
at these sites. Additional health work at these sites may well be
required in the future.
ATSDR has also provided funding to nine states to conduct health
statistics reviews, which offer a way of identifying any heightened
incidence of disease associated with asbestos exposure at vermiculite
sites around the country, and we continue to recruit states to join
this effort. ATSDR expects to release an interim report of results of
the health statistics reviews by June 30, 2003.
Our Superfund-related work encompasses environmental problems and
health threats that extend well beyond those posed by asbestos
contamination. We have a mandate to produce toxicological profiles on
the 275 substances thought to pose the greatest hazards and to ensure
that needed research is done on those chemicals to fill key gaps in
information.
Two key programs that contribute to that effort are the Great Lakes
Human Health Effects Research Program and the Minority Health
Professions Foundation programs.
--We support the Great Lakes Human Health Effects Research Program in
its efforts to build on and amplify the results of past and
ongoing fish-consumption research in the Great Lakes basin. One
of the significant findings under this program is that serum
polychlorinated biphenyl (PCB) levels and consumption of Great
Lakes fish are significantly associated with lower levels of
thyroxine, a hormone secreted by the thyroid, in both women and
men. Researchers also found that consumption of fish meals was
highest among African Americans, but awareness of the fish
advisories was lowest in that group.
--Our cooperative agreement with the Minority Health Professions
Foundation and its Environmental Health and Toxicology Research
Program continues to help us close the information gap in
available scientific data on the health impacts of exposure to
hazardous wastes, particularly on the health of poor and
minority populations. The agreement, which includes as
participants such historically black educational institutions
as the Morehouse School of Medicine, Charles R. Drew
University, Texas Southern University, Florida A & M
University, Meharry Medical College, Tuskegee University, and
Xavier University of Louisiana, helps underwrite the training
of students who will make a major contribution to public health
practice. Moreover, the agreement results in filling some of
ATSDR's major research areas.
To further assist communities and apply the benefits from
increasing knowledge about the relationship between exposure to toxic
substances and resulting disease, in the past year ATSDR has begun
implementing an applied public health environmental research agenda. In
developing this program ATSDR has been working closely with other
federal agencies, including the National Institute of Environmental
Health Sciences, to best leverage resources and develop collaborative
approaches to address common research needs. As part of this extramural
research initiative ATSDR will pursue new partnerships with state-based
and academic institutions. This research agenda will enable us to
answer with greater certainty the questions and concerns raised by
communities exposed to toxic substances and hazardous wastes, and to
improve our ability to provide the best service to communities in the
vicinity of Superfund sites.
Site specific health studies are another important tool in
advancing our knowledge about the relationship between exposure to
hazardous substances and any resulting disease. Recent examples of some
of our ongoing work in this area include:
--In Anniston, Alabama, ATSDR has been working in collaboration with
local, state, and federal agencies, as well as with community
representatives, to address community concerns regarding the
potential for exposure to PCBs. We have been working with the
Alabama Department of Public Health to gather, analyze, and
interpret vital statistics and existing data describing the
incidence of cancer for residents of Anniston, and we will be
funding multi-year epidemiologic investigations to study the
health effects of exposure to PCBs in this community. We will
work closely with the institution(s) selected to do that study,
providing both technical and administrative support to the
researchers. We will also work closely with EPA in further
evaluating exposures.
--In Herculaneum, Missouri, we have invited a panel of experts to
assist us in developing an appropriate health study design to
address the lead exposures experienced in this community. We
are particularly interested in studying the effects of exposure
to lead among children, adolescents, and young adults. In a
blood lead screening effort conducted in 2001, 30 of 67
children six years old or younger living closest to the Doe Run
lead smelter had blood lead levels at or above the CDC action
level for lead of 10 ug/dL. A preliminary review of available
blood lead data from testing in 2002 of 58 children under 6
years old indicate elevated blood lead levels in 17 percent of
those children. Further study is warranted in view of the fact
that these levels are more than double the national prevalence
rate of 7.6 percent and the Missouri rate of 8 percent. Factors
contributing to the reduction may include community education
regarding possible pathways of exposure, health effects of
exposure and measures to reduce exposure.
--In Fallon, Nevada, ATSDR worked closely with CDC's National Center
for Environmental Health (NCEH), the Nevada State Health
Division (NSHD), and other agencies to investigate a broad
range of possible environmental causes of an unusually high
number of childhood leukemia cases there. ATSDR conducted a
comprehensive public health assessment process, consulting with
community members to identify their health and environmental
concerns and then examining a variety of possible environmental
pathways through which people might have been exposed to
hazardous substances. Earlier this year, ATSDR, CDC/NCEH and
NSHD issued reports on the findings of this investigation and
held a number of public meetings with the Fallon community.
Despite extensive investigation, the agencies have not found a
relationship between environmental exposures to contaminants
and the leukemia cases.
--In San Antonio, Texas, we evaluated potential releases of hazardous
substances from Kelly Air Force Base, on-base drinking water,
and current and past air emissions for associations with health
concerns of communities surrounding the base. We are now
assisting the Air Force in evaluating a case series of
amyotrophic lateral sclerosis, a motor neuron disease, in this
community.
--In Dakota City, Nebraska, we examined the association between
hydrogen sulfide, total reduced sulfur levels, and neuro-
behavioral activity, on the one hand, and the incidence of
hospital visits by children for treatment of asthma and other
respiratory illnesses, on the other. We are now involved in a
follow-up study in Dakota City and South Sioux City.
--In Warren Township, Ohio, we have been involved in investigating
hydrogen sulfide exposure in the surrounding air, creating a
multi-agency committee to form and carry out a Public Health
Action Plan to address recommendations made in a rapid response
health consultation.
--In Elmore, Ohio, we investigated whether beryllium air emissions
and possible worker take-home contamination from the Brush
Wellman Elmore plant present a health hazard to the community.
Working with the Ohio Environmental Protection Agency, Ohio
Citizen Action, and Brush Wellman, we issued a health
consultation and conducted several public meetings to address
community concerns.
--In El Paso, Texas, we worked with the Texas Department of Health to
address that city's concerns about heavy metal contamination
near Sun Bowl stadium. The health department, which receives
funding from ATSDR, conducted a series of health consultations
looking at lead and arsenic levels in soil. Several residential
yards and a daycare facility were found to have amounts of lead
and arsenic that exceeded health based screening values.
Exposure to lead and arsenic at some of these areas could pose
an unacceptable public health hazard to children.
--In Tarpon Springs, Florida, we recently issued for public comment a
public health assessment for the Stauffer Chemical Company
site, where contaminants are present in the groundwater and the
air. We have entered into an agreement with the University of
South Florida to identify and locate former employees as well
as students who attended the school nearby, and we are working
with the Florida Department of Health to review information
from the Florida cancer registry.
--In northeast Denver, Colorado, we have been working with the
Colorado Department of Public Health & Environment and the
University of Colorado to conduct a study of children
potentially exposed to arsenic, also focusing specifically on
soil pica behavior, a habit of ingesting soil, in children six
months to six years of age. We have also provided comments to
EPA on its proposed plan for cleaning up the so-called VB I-70
site.
Another key function of ATSDR's Superfund program is to educate
both the health community and the general public about the hazards of
specific chemicals and waste sites. Recent work in this area includes:
--In Marion, Illinois, we have worked with the Illinois Department of
Health to educate teachers about and improve storage and
handling of potentially dangerous chemicals, including mercury,
in schools. Many of these stored chemicals were removed as a
result of the project.
--In Jasper County, Missouri, we funded a study by the Missouri
Department of Health to assess whether public health
intervention efforts had been effective in reducing blood lead
levels of the community's children. The intervention efforts
were found to have reduced blood lead levels significantly.
Targeted efforts to improve the diagnosis and treatment of children
exposed to toxic substances have been another priority for ATSDR. We
have recently succeeded in helping establish Pediatric Environmental
Health Specialty Units (PEHSUs) in all ten of the federal regions. In
fiscal year 2002, pediatricians at these clinics who are especially
cross-trained in environmental medicine evaluated more than 1,500
children and provided an additional 1,500 phone consultations to other
pediatricians in their regions.
In July of 2002, the PEHSU clinic in Chicago was contacted by the
Chicago Housing Authority, which was concerned about arsenic
contamination in the soil of a local playground. The PEHSU, working
with the Chicago Department of Public Health, helped screen local
children and identified 14 with elevated levels of arsenic in their
urine. The PEHSU provided follow-up medical care for affected children,
and the Chicago Housing Authority began immediate clean-up of the
playground. This is an excellent example of how a new-and much needed-
resource can help us partner to protect children from the effects of
toxic exposure.
POST 9/11 CHALLENGES IN PREPARING TO ADDRESS TERRORISM AND EMERGENCY
PREPAREDNESS
During the past year, ATSDR has continued to help communities
improve emergency preparedness and develop a capacity for rapid
response to acts of terrorism. ATSDR's role in countering health
impacts of terrorism, particularly in the areas of chemicals and the
environment, is essential to national safety. We continue to
participate actively with CDC, EPA, the Department of Homeland Security
(DHS), and state and local health agencies in undertaking planning and
preparedness in areas that focus on the unique capabilities of ATSDR.
For example, we have used partnerships to address emergency
response capacity in our work with the FEMA/DHS Comprehensive HAZMAT
Emergency Response-Capability Assessment Program, or CHER-CAP. ATSDR
has worked with FEMA/DHS on two local emergency planning exercises (the
so-called ``Tri-town'' exercise in Connecticut, and one in Boston,
Massachusetts) to assist those communities in improving their response
to a release of hazardous materials. ATSDR's contributions included
bringing the medical community into the local planning process and
assessing hospital emergency preparedness and response through:
--on-site evaluation, walk-through, and disaster plan review;
--applying lessons learned from the scientific literature to enhance
emergency response;
--encouraging communication and collaboration among public health and
medical officials and community-wide disaster planners
regarding preparation for mass-casualty events;
--providing assistance and training to community responders as well
as supporting preparation for use of technology such as
geographic information systems and toxicologic data bases; and
--conducting exercises to assess the state of readiness to respond to
mass-casualty events.
In addition, in June of this year ATSDR will participate in a
large-scale regional emergency preparedness exercise in Louisville,
Kentucky with EPA, FEMA/DHS, CDC, and state and local public health
agencies as well as hospitals, physicians, and fire departments. In
this simulation, we will provide answers to toxicological and medical
questions and help maintain a ``victim's registry''.
We also partner with the private sector to expand the utilization
of our products. In conjunction with the American Chemistry Council, we
distributed the document Managing Hazardous Materials Incidents
(including the medical management guidelines) on CD-ROMs to states and
communities to educate first-responders to the adverse health effects
of specific chemicals.
We provide communities with access to geographic information
systems to map localities and to model the dispersion of chemicals in
the event of an uncontrolled release.
Our Hazardous Substances Emergency Events Surveillance system
(HSEES) is a major resource in our efforts to reduce and even prevent
the injury and death that result from hazardous substances events. The
system captures incident and facility data as well as data on health
outcomes from hazardous material (HazMat) accidents and other
uncontrolled releases. To date, fifteen states have cooperative
agreements with ATSDR to participate in HSEES. State health departments
enter data into a Web-based application to enable ATSDR to access data
instantly for analysis. We are working to use HSEES as a key source of
health information to enable us to respond to emergency events,
including incidents of terrorism. The recent fire at a plastics factory
in Kinston, North Carolina, for example, provided us with an
opportunity to evaluate the use of HSEES as a means of assessing past
experience and trends in fires in similar types of facilities. Data
from HSEES has also provided us with information that has been used to
help ensure that first responders know the appropriate personal
protective gear to use in dealing with the clean-up of clandestine
methamphetamine labs.
Since the events of 9/11/2001, ATSDR has initiated several
activities designed to apply existing tools to aid preparedness in the
event of a chemical attack. For example, ATSDR distributed a CD-ROM
version of our toxicological profiles and medical management guidelines
to state and local agencies and to first-responders. In addition, ATSDR
toxicologists, in conjunction with scientists at CDC, have evaluated
chemicals that are the most likely to be used in a terrorist attack.
Although we have information on how to diagnose and treat people
exposed to some of these chemicals, we are working to fill the gaps in
information that still exist so that we can be even better prepared. At
the same time, we are sharing the information that we do currently have
with all relevant parties, including first-responders, hospital
emergency rooms, poison control centers, clinicians, and the general
public.
Other activities that demonstrate ATSDR's commitment to improving
community emergency preparedness and to developing a rapid response
capacity to terrorism include the following:
--Staff members worked with the Federal Bureau of Investigation to
collect anthrax spore samples as evidence in the American Media
Inc. office building in Boca Raton, Florida, where the index
case of inhalation anthrax occurred in an employee. ATSDR
scientists and FBI investigators worked together as members of
building entry and medical monitoring teams throughout the
field investigation. The field investigation team successfully
applied a new combination of scientific techniques to locate,
quantify, and collect concentrations of anthrax spores within
the building.
--Working with funding from FEMA/DHS, we are helping the New York
City Department of Health and Mental Hygiene develop a registry
of 150,000-200,000 workers and residents to track the health of
people exposed to contaminants from the World Trade Center
site.
--ATSDR rapidly assembled toxicologic guidance for NASA, EPA, and
local first responders on the potential for exposures to toxic
substances in connection with the Columbia shuttle disaster.
--ATSDR has linked our emergency response staff with the new CDC
Emergency Operations Center so that we have a rapid and
seamless public health response to emergency events involving
chemicals, including any terrorist attack.
ATSDR will continue to work closely with:
--EPA, to develop data and distribute information on chemicals and
other hazards;
--our sister agency CDC, other agencies within the Department of
Health and Human Services, and state and local agencies to help
train health responders, to deal with chemical, radiologic, and
environmental terrorist threats; and
--DHS, to assure that public health responders are integrated into
local emergency planning.
Mr. Chairman and members of the Subcommittee, our 20th year of
service to the American public has been the most productive of all, and
I expect that productivity to continue. We have been good stewards of
the public funds that Congress has entrusted to us. We continue to look
for ways to maximize our contribution to the public's health through
leveraging partnerships and technology. And, ATSDR has undertaken a
major internal initiative in strategic planning for the next five
years. We are tying our budget and staffing levels to specific
performance planning goals and objectives, and striving to improve our
program performance measures with more outcome and impact data, in an
effort to provide Congress and the public a full accounting of our
programs in terms of the difference we have made and the unique
expertise and services we offer.
Thank you for the opportunity to provide this testimony.
______
DEPARTMENT OF THE ARMY--CIVIL
PREPARED STATEMENT OF HONORABLE LES BROWNLEE, UNDER SECRETARY OF THE
ARMY AND ACTING ASSISTANT SECRETARY OF THE ARMY (CIVIL WORKS)
INTRODUCTION
Thank you for the opportunity to provide this statement in support
of the President's budget for the Department of the Army's Cemeterial
Expenses program for fiscal year 2004.
I am providing this statement on behalf of the Secretary of the
Army, who is responsible for operating and maintaining Arlington and
Soldiers' and Airmen's Home National Cemeteries, as well as making
necessary capital improvements to ensure their long-term viability.
Arlington National Cemetery is the Nation's premier military
cemetery. It is an honor to represent this cemetery and the Soldiers'
and Airmen's Home National Cemetery. On behalf of these two cemeteries
and the Department of the Army, I would like to express our
appreciation for the support this subcommittee has provided over the
years.
FISCAL YEAR 2004 BUDGET OVERVIEW
The fiscal year 2004 budget is $25,961,000, which is $6,484,000
less than the fiscal year 2003 appropriation of $32,445,000. The fiscal
year 2004 budget will support Arlington National Cemetery's efforts to
improve its infrastructure and continue working toward implementation
of its Ten-year Capital Investment Plan. The funds requested are
sufficient to support the work force, assure adequate maintenance of
buildings and grounds, acquire necessary supplies and equipment, and
provide the high standards of service expected at Arlington and
Soldiers' and Airmen's Home National Cemeteries.
The budget also includes funds to pursue expansion efforts needed
to ensure that Arlington National Cemetery remains an active burial
place for service men and women well into the twenty-first century. The
following table displays how long gravesites will remain available in
both developed and undeveloped areas that are currently part of the
Cemetery. It is presented to illustrate the importance of proceeding
with expansion projects in a timely manner so that there will be no
disruption in services for deceased veterans and to relieve significant
crowding of funeral services.
Note that the gravesite capacity shown in the table for the
undeveloped area is for currently owned land (i.e., Project 90 and
utility relocations), but does not include the Millennium Project,
which requires both land within the Cemetery's boundaries (i.e., the
old warehouse area and Section 29 land) and land to be transferred to
the Cemetery (i.e., Fort Myer picnic area). Nor does the table reflect
future land expansion projects programmed in the Ten-year Capital
Investment Plan beyond the Millennium Project, such as the Navy Annex
and Fort Myer parking lot, all of which are currently authorized and
are addressed in the Concept Land Utilization Plan.
ARLINGTON NATIONAL CEMETERY
[Gravesite Capacity as of September 30, 2002]
------------------------------------------------------------------------
------------------------------------------------------------------------
Gravesite capacity--developed areas..................... 242,850
Total gravesites used................................... 212,281
Gravesites currently available.......................... 30,569
Year available capacity exhausted....................... 2012
Gravesite capacity--undeveloped area.................... 36,000
Total gravesite capacity................................ 278,850
Year total capacity exhausted........................... 2025
------------------------------------------------------------------------
I will elaborate further on the significance of the declining
gravesite capacity later on in this statement.
BUDGET DETAILS
The budget is made up of three programs--Operation and Maintenance,
Administration, and Construction. The principal items contained in each
program are described below.
Operation and Maintenance Program
The budget for the Operation and Maintenance program is
$15,793,000. It provides for the cost of operations necessary to
conduct an average of 25 funeral services per day, accommodate four
million visitors each year, and maintain 652 acres of land and
associated infrastructure. This program supports 95 of the cemeteries'
total of 101 full time equivalent (FTE) work-years. Contractual
services comprise just over one-half of the Operation and Maintenance
program at $8,560,000, as follows:
--$3,000,000 for tree and shrub maintenance.
--$2,300,000 for grounds maintenance.
--$1,400,000 for information guard services.
--$530,000 to develop an automated system for burial records,
gravesite locations, financial management, supplies and
equipment.
--$325,000 for custodial services.
--$1,005,000 for recurring maintenance of equipment, buildings,
headstones, and other facility maintenance contracts.
The remaining funds in the Operation and Maintenance program
support the Government workforce, which is primarily responsible for
all activities associated with preparing gravesites and conducting
burial services, as well as the cost of utilities, supplies and
equipment.
Administration Program
The budget includes $1,299,000 for the Administration program,
which provides for essential management and administrative functions,
including staff supervision of Arlington and Soldiers' and Airmen's
Home National Cemeteries. Budgeted funds will provide for personnel
compensation, benefits, and reimbursable administrative support
services provided by other government agencies. This program supports
the balance of the cemeteries' workforce of six FTE work-years.
Construction Program
The Construction program's budget is $8,869,000, consisting of the
following projects:
--$3,300,000 to design development of 36 acres of land known as the
Millennium Project.
--$53,000 to update and refine the Ten-year Capital Investment Plan.
--$200,000 to continue developing property in and adjacent to
Arlington National Cemetery, in accordance with the Concept
Land Utilization Plan.
--$1,850,000 to repair roads and walkways.
--$400,000 to continue the grave liner program.
--$350,000 to demolish the remaining old warehouse buildings.
--$720,000 to repair storm and sanitary sewer lines.
--$520,000 to study, design and repair stone boundary walls.
--$535,000 to study and design Facility Maintenance Complex storage
facilities.
--$205,000 to conduct utility surveys.
--$185,000 to install an irrigation system at the Kennedy gravesites.
--$140,000 to repair the fountain at Columbarium Court 2.
--$125,000 to study appearance standards for cemetery operations.
--$286,000 to perform a variety of minor projects such as painting
and cleaning facilities.
Three of the above projects are particularly important to increase
the capacity of Arlington National Cemetery, so that space is available
for burials into the next century. They are described further in the
following paragraphs.
Millennium Project.--As the table displayed earlier in this
statement illustrates, capacity in the currently developed area of
Arlington National Cemetery will be exhausted by 2025. In order to
extend the Cemetery's useful life, the budget includes $3.3 million to
design the Millennium Project, so that development can begin in fiscal
year 2007. The Millennium Project involves the development of 36 acres
of land into gravesite areas, roads, utilities, columbarium walls, and
a boundary wall with niches for the placement of cremated remains.
Approximately 26,000 additional gravesites and 15,000 niches will be
provided when the development is complete. Actual yields could change
significantly, depending upon final design. The Millennium Project
would extend the useful life of the Cemetery beyond 2025 to somewhere
between 2038 and 2047, depending upon final implementation.
The Millennium Project consists of three parcels of land. The first
parcel (7 acres) is land already within the boundaries of Arlington
National Cemetery made available by demolition of the old warehouse
buildings. The second parcel (12 acres) was transferred to the Cemetery
from the National Park Service on January 28, 2002, pursuant to the
authority contained in Section 2863 of Public Law 107-107, the National
Defense Authorization Act for Fiscal Year 2002. The final piece of the
Millennium Project is a 17-acre parcel of adjacent land currently owned
by Fort Myer (picnic area), which is to be transferred to the Cemetery
in accordance with Section 2882 of the fiscal year 2000 Defense
Authorization Act (Public Law 106-65). We are working with Fort Myer to
implement this land transfer in the near future.
Ten-year Capital Investment Plan.--By our letter of February 5,
2002, we provided this subcommittee with a ten-year plan that
identifies the Cemetery's new construction, major rehabilitation, major
maintenance and study proposals for the next ten years. It addresses
projects identified in the 1998 Master Plan and other projects needed
to ensure that the cemetery remains open for burials into the twenty-
second century. It also serves as a guide for annually recurring
maintenance needs of the Cemetery.
The fiscal year 2004 budget includes $53,000 to continue developing
and refining this multi-year plan for funding projects in a technically
sound and financially efficient manner. This is a living document that
will be periodically updated to reflect the latest information,
identify new requirements and improve the quality of cost estimates. It
is an essential tool in developing a credible long-term investment
strategy and the budget recommendations that emanate from it.
Concept Land Utilization Plan.--By our letter of October 27, 2000,
we provided this subcommittee with a plan that identifies the
requirements for developing adjacent land for future expansion. The
first site to be developed is the Millennium Project, as described
above. The Concept Land Utilization Plan also includes the Navy Annex
and Fort Myer parking lot, which would extend the Cemetery's life to
somewhere between 2054 and 2068, again depending upon how these sites
are ultimately developed. Increasing capacity beyond this time frame
will require additional land expansion for gravesites or more
columbarium niches.
The other items listed in the Construction program are needed to
address aging and deteriorating infrastructure. These are primarily
repairs and replacements that should be accomplished to avoid further
cost increases and potentially disruptive emergency repairs.
FUNERALS
In fiscal year 2002, there were 4,022 interments and 2,283
inurnments. In fiscal year 2003, we estimate there will be 3,925
interments and 2,700 inurnments. Looking ahead to fiscal year 2004, we
estimate there will be 3,925 interments and 2,775 inurnments.
CEREMONIES AND VISITATION
Millions of visitors, both foreign and American, come to Arlington
to view the Cemetery and participate in ceremonial events. During
fiscal year 2002, about 3,100 ceremonies were conducted, with the
President of the United States attending the ceremonies on Veterans Day
and Memorial Day.
During fiscal year 2002, Arlington National Cemetery accommodated
approximately 4 million visitors, making it one of the most visited
historic sites in the National Capital Region. A recent study confirmed
this estimate. A customer survey system will be designed and
implemented in conjunction with the Cemetery's overall automation plan
and will be used to collect, enter and analyze the survey data.
FISCAL YEAR 2003 APPROPRIATION
The additional $8,000,000 provided in the fiscal year 2003
appropriation will be used to repair the Memorial Amphitheater
($6,000,000), accelerate Phase II of Project 90 land development
($1,200,000), and replace the visitor center roof ($800,000). The roof
replacement will be accomplished with reprogrammed funds as explained
in my letter to this subcommittee dated October 30, 2002. The 0.65
percent rescission included in the fiscal year 2003 appropriation act
(Public Law 108-7), amounts to $210,893 for Arlington National
Cemetery, which has been applied to Project 90.
CONCLUSION
The funds included in the fiscal year 2004 budget are necessary to
maintain the existing infrastructure at Arlington National Cemetery,
provide quality services for its many visitors, make the capital
investments needed to accommodate burials, and preserve the dignity,
serenity and traditions of the cemetery. I respectfully ask the
Subcommittee's favorable consideration of our budget.
______
FEDERAL DEPOSIT INSURANCE CORPORATION
PREPARED STATEMENT OF GASTON L. GIANNI, JR., INSPECTOR GENERAL, OFFICE
OF INSPECTOR GENERAL
FISCAL YEAR 2004 BUDGET SUMMARY STATEMENT
The Office of Inspector General (OIG) at the Federal Deposit
Insurance Corporation (FDIC) requests $30.1 million for fiscal year
2004 to fund 168 staff who conduct independent audits, investigations,
and other reviews to assist and augment the FDIC's mission. OIG efforts
promote the economy, efficiency, and effectiveness of the FDIC's
programs and operations and protect against fraud, waste, and abuse.
The OIG's fiscal year 2002 achievements are impressive and include:
--$1.360 billion in actual and potential monetary benefits--a
potential return of $42 for each $1 invested in the OIG.
--141 non-monetary recommendations to FDIC management
--29 referrals to the Department of Justice
--35 indictments
--28 convictions
--2 employee/disciplinary actions
The OIG recently assessed the most significant management and
performance challenges facing the FDIC. The OIG's annual and strategic
plans for fiscal years 2003 and 2004 are and will be focused on issues
within these challenges:
--Adequacy of Corporate Governance in Insured Depository Institutions
--Protection of Consumer Interests
--Security of Critical Infrastructure
--Management and Analysis of Risks to the Insurance Funds
--Effectiveness of Resolution and Receivership Activities
--Management and Security of Information Technology Resources
--Assessment of Corporate Performance
--Transition to a New Financial Environment
--Organizational Leadership and Management of Human Capital
--Cost Containment and Procurement Integrity
The OIG's budget is about $1.3 million less than the fiscal year
2003 appropriation. After adjusting for inflation, fiscal year 2004
will be the eighth consecutive year that the OIG's budget decreased.
The OIG has significantly downsized its staff from an authorized level
of 215 for fiscal year 2002 to 168 for fiscal year 2004. The budget and
staffing reductions have been possible due to the shrinking size of the
FDIC, completion of work related to the banking and thrift crises of
the 1990s, prospects for continuing health of the banking industry, and
buyout and early retirement initiatives of the FDIC.
Most of the OIG's budget would pay for salaries, benefits, travel,
and training for its staff. The OIG is also budgeting for certain
potential litigation expenses which, under Public Law 107-174, must now
be paid with appropriated funds. Also, the OIG is budgeting to replace
computers and continue efforts to establish an electronic crimes unit.
The OIG's appropriation would be derived from the Bank Insurance Fund,
the Savings Association Insurance Fund, and the FSLIC Resolution Fund.
These funds are the ones used to pay for other FDIC operating expenses.
Mr. Chairman and Members of the Subcommittee, I am pleased to
present the fiscal year 2004 budget request totaling $30.1 million for
the Office of Inspector General (OIG) at the Federal Deposit Insurance
Corporation (FDIC). As Inspector General, I am proud of the OIG's
fiscal year 2002 performance and results and look forward to current
and future challenges to support the Congress, the FDIC Chairman, and
corporate management.
The FDIC was created by the Congress in 1933 to maintain stability
and public confidence in the nation's banking system. The federal
deposit insurance offered by the FDIC is designed to protect depositors
from losses due to failures of insured commercial banks and thrifts.
Individual deposits of up to $100,000 are covered for 9,354
institutions totaling $3.386 trillion in deposits as of December 31,
2002. The FDIC also promotes the safety and soundness of these
institutions by identifying, monitoring, and addressing risks to which
they are exposed.
The FDIC OIG was established in 1989 when the Congress amended the
Inspector General Act to include the FDIC under the Act's provisions.
The OIG's program of independent audits, investigations, and other
reviews assists and augments the FDIC's mission. OIG efforts promote
the economy, efficiency, and effectiveness of FDIC programs and
operations and protect against fraud, waste, and abuse.
The past year has experienced great change in the composition of
the OIG workforce through a major downsizing and reshaping initiative.
Along with others in the Corporation, the OIG has worked to complete a
downsizing effort that has been on-going for several years following
the FDIC staff buildup to handle the bank and thrift crisis in the
early 1990s. For the OIG, the recent downsizing has meant decreasing
from an authorized level of 215 staff for fiscal 2002 to 168 for fiscal
2004--about a 22 percent reduction. Since I became the FDIC Inspector
General in 1996, our staff has decreased from 370 to the current level,
or a total decrease of about 56 percent. This decrease is comparable to
overall staff decreases throughout the FDIC.
Even with our downsizing, the OIG has continued to provide
significant value to the management of the FDIC. In addition, we have
carried out initiatives to work more strategically in areas of greatest
challenge to the FDIC, improve our efficiency, enhance our
communications with both the Corporation and the Congress, add to our
staff expertise, and align our human capital with our strategic
planning.
The funds we are requesting are essential to helping us remain
prepared to meet the complex and multidimensional issues and challenges
confronting the FDIC now and in the future. These funds will permit us
to continue employing the highly capable staff who can meet our future
challenges, invest in the technology needed to advance our
capabilities, and cover other mandates. After adjusting for inflation,
fiscal year 2004 will be the eighth consecutive year that the OIG's
budget has decreased.
Before detailing our budget needs for fiscal year 2004, I would
like to highlight some of the OIG's accomplishments in fiscal year 2002
and the major challenges confronting the FDIC and OIG.
A REVIEW OF THE FDIC OIG'S FISCAL YEAR 2002 ACCOMPLISHMENTS
The OIG's fiscal year 2002 achievements are impressive, and the
results include:
--$1.360 billion in actual and potential monetary benefits--a
potential return of $42 for each $1 invested in the OIG.
--141 non-monetary recommendations to FDIC management
--29 referrals to the Department of Justice
--35 indictments
--28 convictions
--2 employee/disciplinary actions
More specifically, our accomplishments included 48 completed
investigations that led to the above indictments and convictions as
well as fines, court-ordered restitution, and recoveries that
constitute the bulk of the monetary benefits from our work. Also, we
issued 36 audit reports, 5 evaluations, and 1 memorandum, which
included about $607,000 in questioned costs and $3.1 million in
recommendations that funds be put to better use. The recommendations in
these reports aim to improve the internal controls and operational
effectiveness in diverse aspects of the Corporation's operations,
including automated systems, contracting, bank supervision, financial
management, and asset disposition.
Further, the OIG accomplished many of its organizational goals
during the fiscal year as outlined in our annual performance plan. Our
2002 Performance Report shows that we met or substantially met 23 of
our 26 goals, or 88 percent. In a measurable way, these achieved goals
show the progress we continue to make to add value to the Corporation
with our audits, investigations, and evaluations in terms of impact,
quality, productivity, timeliness, and client satisfaction. We also met
or substantially met goals for providing professional advice to the
Corporation and for communicating with clients and the public.
Audits, Investigations, and Evaluations
Examples of the OIG's audits, investigations, and evaluations work
that contributed to these accomplishments follow.
Audits of Superior Bank Failure.--The OIG issued the results of
four reviews, several based on a congressional request, related to the
failure of Superior Bank, FSB, Hinsdale, Illinois. Loss estimates
resulting from the failure total about $440 million, making this one of
the costliest of all recent failures of FDIC-insured institutions. I
testified about our work before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, commenting on areas where regulatory
oversight could be strengthened; the regulatory capital treatment of
residual assets; and the FDIC Board of Directors' authorization of an
expanded delegation of authority for examiners to conduct examinations,
visitations, or other activities of insured depository institutions.
Review of FDIC Special Examination Authority.--The OIG issued the
results of its review of the FDIC's special examination authority and
the Division of Supervision's effectiveness in monitoring risks posed
by the nation's largest banks. Additionally, the OIG commented in
advance on the draft interagency agreement signed on January 29, 2002
authorizing an expanded delegation of authority to grant the FDIC more
autonomy in examining banks that pose a heightened risk to the
insurance funds.
Investigation of Former Chairman of Bank of Honolulu.--In March
2002, the former chairman and owner of 76 percent of shares of the now-
defunct Bank of Honolulu (Hawaii) was sentenced in the U.S. District
Court in Honolulu to 36 months' incarceration to be followed by 5
years' supervised release. However, he will be subject to immediate
deportation upon release from confinement. As a part of the sentencing,
he was also ordered to pay restitution totaling $3,115,523. The
defendant had previously pled guilty in October 2001 to violating the
federal wire fraud statute as a part of a scheme whereby he and his
brother fraudulently obtained the proceeds of two loans totaling $3
million made by the Bank of Honolulu. He also pled guilty to knowingly
and fraudulently concealing property as a part of the bankruptcy
proceeding he filed in 1998. The bankruptcy fraud violations involve
two tax refund checks from the State of Hawaii totaling $757,249, which
he received and failed to turn over to the Bankruptcy Trustee.
The defendant was initially indicted in August 2000 and was charged
with additional violations in superseding indictments in October 2000
and May 2001. The latter superseding indictment also included charges
against five other individuals who were alleged to have helped him hide
money from the bankruptcy court and creditors. The additional
defendants included two of his brothers, two of his business
associates, and his girlfriend.
This case was jointly investigated by the FDIC OIG and the FBI and
was prosecuted by the United States Attorney's Office for the District
of Hawaii.
Investigation of the First National Bank of Keystone (West
Virginia).--During the past year the investigations and prosecutions of
the principal subjects in the case involving the failure of the First
National Bank of Keystone (West Virginia) were completed. The
investigation and prosecutions involving Keystone were conducted by a
multi-agency task force comprised of special agents of the FDIC OIG,
FBI, and IRS and prosecutors from the United States Attorney's Office
for the Southern District of West Virginia and the U.S. Department of
Justice. The FDIC Division of Resolutions and Receiverships also
provided valuable assistance in support of the task force
investigations. The investigation began after the Office of the
Comptroller of the Currency conducted an examination in 1999 that
uncovered information that ultimately resulted in the closure of the
First National Bank of Keystone (Keystone) on September 1, 1999. Based
on the estimated losses to the insurance fund attributable to the
Keystone failure, it is one of the ten costliest bank failures since
1933.
Since inception, this investigation and corresponding prosecutions
have resulted in the conviction and sentencings of four of the former
officers of the bank on charges of obstructing the examination of the
bank. Two of those same officers along with three other officers were
convicted on various other charges relating to illegal activity at the
bank including bank fraud, money laundering, embezzlement, mail fraud,
insider trading, and filing false income tax returns. Sentencings have
totaled over 88 years' confinement, over 32 years' probation, fines of
$124,500, and over $1.3 billion in restitution.
I am especially proud of the recognition given to four OIG Special
Agents who received the Attorney General's Award for Distinguished
Service on July 17, 2002 for their exemplary work in the investigation
and prosecutions related to this case.
Review of Information Security Issues.--The OIG issued its mandated
report on the FDIC's compliance with the Government Information
Security Reform Act, concluding that the Corporation had established
and implemented management controls that provided limited assurance of
adequate assurance over its information resources. While progress had
been made in addressing previously identified weaknesses, in 3 of 10
key management control areas evaluated (Contractor and Outside Agency
Security, Capital Planning and Investment Control, and Performance
Measurement), the FDIC had no assurance that adequate security had been
achieved. Our report also highlighted opportunities for the Corporation
to strengthen the accountability and authority for information security
by (a) appointing a permanent Chief Information Officer (CIO), (b)
ensuring that the individual serving as the CIO reports directly and
solely to the Chairman, and (c) filling key vacancies within the
Division of Information Resources Management that support information
security initiatives and operations.
Investigations of Outstanding Restitution Orders and Other Debt.--
Working with the Corporation's Division of Resolutions and
Receiverships, the U.S. Attorneys' offices, and other federal agencies,
the OIG continued to identify and pursue investigations of FDIC debtors
who have concealed assets or committed other fraud in attempting to
avoid repayment of their obligations to the FDIC. Our caseload includes
a total of over $1 billion of estimated fraud related to court-ordered
restitution and other types of debt.
Evaluation of Physical Security for FDIC Facilities.--Following the
tragic events of September 11, 2001, the OIG focused its attention on
the security of FDIC facilities. We reported that the FDIC generally
addresses Department of Justice minimum security standards, but we saw
a need to assign a risk level to each FDIC facility and develop
appropriate plans based upon the risks. The Corporation has been
responsive to our concerns.
Our semiannual reports to the Congress provide many other examples
of OIG accomplishments. These reports can be found on our Web page at
www.fdic.gov/oig/semi.html or by contacting our office.
Assistance to FDIC Management
In addition to 2002 audits, investigations, and evaluations, the
OIG made valuable contributions to the FDIC in several other ways. We
strive to work in partnership with Corporation management to share our
expertise and perspective in certain areas where they are seeking to
make improvements. Among these contributions were the following
activities:
--Reviewed 40 proposed corporate policies and 2 draft regulations and
offered comments and suggestions when appropriate.
--Commented on the FDIC's annual performance report.
--Provided advisory comments on the FDIC's 2002 Annual Performance
Plan.
--Provided the Corporation with a risk analysis that identified an
emerging risk, the quality of bank financial reporting and
auditing.
--Participated in several division level conferences to communicate
about our audit and investigation work and processes.
--Provided comments to the Chief Operating Officer on the
Corporation's draft Emergency Response Plan.
--Provided technical assistance and advice to several FDIC groups
working on information technology issues, business process
redesign, information security reviews, and contracting
policies.
--Conducted an annual review of the Corporation's internal control
and risk management program.
OIG Management and Operational Initiatives
An important part of our stewardship over the funding we receive
includes our continuous efforts to improve OIG operations. During the
past year, we took several initiatives that have great significance on
our work and operations.
As I mentioned in the beginning of our statement, the OIG
participated in a significant downsizing and restructuring initiative
with the Corporation. FDIC Chairman Donald Powell envisions a smaller
FDIC and developed a program of voluntary employee separation
incentives, including an employee buyout program and early retirements.
I thoroughly reviewed all OIG functions and determined that we needed
to downsize our staff significantly and, in some cases, hire staff with
more relevant skills. Over 50 OIG staff accepted buyouts and/or early
retirements. We closed our San Francisco office and are in the process
of completing a small reduction-in-force involving remaining surplus
staff.
The new organization, though smaller, is now more closely aligned
with key FDIC mission areas. For example, our Office of Audits
underwent a major reorganization around five operational directorates:
Resolution, Receivership, and Legal Affairs; Insurance, Supervision,
and Consumer Affairs; Information Assurance; and Resources Management.
A fifth directorate, Corporate Evaluations, performs corporate-wide and
other evaluations. Our audit function underwent a peer review by the
U.S. Agency for International Development. The review concluded that
the OIG's quality control system was designed in accordance with the
standards of the President's Council on Integrity and Efficiency (PCIE)
and provided reasonable assurance of conformance to professional
standards in the conduct of audits.
Our Office of Investigations has also realigned its staff and field
operations in response to the OIG's downsizing effort. In addition, I
established the Office of Management and Congressional Relations by
merging two offices.
While restructuring to a smaller workforce, the OIG continues to
look to increasing the value of our people and the performance capacity
of the OIG. During fiscal year 2002, we issued a Human Capital
Strategic Plan, which will align and integrate our human resource
policies and procedures with the OIG mission. The alignment of our
human resources with our mission is a new strategic goal in revisions
we have made to our Strategic Plan. The Human Capital Strategic Plan
outlines four objectives to maximize the return on our human capital
investments. The objectives relate to workforce analysis; competency
investments; leadership development; and a result-oriented, high
performance culture. We are in the process of implementing several key
efforts in this multi-year plan, including identification of key staff
competencies needed to perform our work and development of a business
knowledge inventory system.
Our revised strategic goals are interrelated, as follows:
Value and Impact.--OIG products will add value by achieving
significant impact related to addressing issues of importance to the
Chairman, the Congress, and the public.
Communication and Outreach.--Communication between the OIG and the
Chairman, the Congress, employees, and other stakeholders will be
effective.
Human Capital.--The OIG will align its human resources to support
the OIG mission.
Productivity.--The OIG will effectively manage its resources.
Other internal initiatives include our joint sponsorship of a 2-day
Symposium on Emerging Issues with Offices of Inspector General of the
Department of the Treasury and the Board of Governors of the Federal
Reserve System, which provided approximately 95 auditors from bank
regulatory agencies and other government organizations insight into
emerging issues as identified by agency and congressional leadership.
We also conducted our fourth external customer survey regarding
satisfaction with OIG operations and processes. We also continued to
incorporate new technology into our office with the use of an automated
working paper software package designed to enhance the efficiency and
effectiveness of our audits and evaluations. In addition, we
implemented a software application that our office developed to approve
training requests and keep accurate records on our staff's compliance
with continuing professional education requirements in Government
Auditing Standards. We also established an internal Information
Technology Security Program.
Other Activities
I continued my role as Vice Chair of the President's Council on
Integrity and Efficiency (PCIE) and have held this position since April
1999. The Council maintains six standing committees to initiate and
manage audit, investigation, evaluation, legislation, professional
development, and integrity issues and projects in the Inspector General
community. The PCIE has been very active in helping the government
achieve better results and has concentrated many of its activities on
areas that would facilitate agency efforts related to the President's
Management Agenda. To enhance the community's ability to continue
fulfilling its mission, the PCIE co-hosted its annual conference to
highlight challenges and explore ways to address them. Further, the
PCIE issued several documents during the fiscal year that contributed
to good government. These documents addressed our nation's critical
infrastructure protection, critical security, and government-wide
management challenges. Several of these documents were requested by
congressional oversight committees to augment their oversight
abilities.
In addition to my leadership role with the PCIE, the FDIC OIG
continued its participation in a Results Act interest group sponsored
by the PCIE and the U.S. Office of Personnel Management to share ideas
and best practices on the Results Act implementation. We also
participated in a PCIE working group looking into the use of Social
Security Numbers in the federal government and concerns related to
identity theft. I also led a PCIE committee to update Quality Standards
for Federal Offices of Inspector General (Brown Book).
MANAGEMENT AND PERFORMANCE CHALLENGES FACING THE FDIC
The OIG recently assessed the most significant management and
performance challenges facing the FDIC. We provided a description of
these challenges to the Chief Financial Officer of the FDIC in the
spirit of the Reports Consolidation Act of 2000. For our part, we will
continue to pursue audits, evaluations, investigations, and other
reviews that address the challenges, and we look forward to continuing
to work with the Congress and corporate officials to address the
challenges successfully. Our annual and strategic plans for fiscal
years 2003 and 2004 are and will be focused on issues within these
challenges. I will discuss each of the challenges listed below in
detail.
--Adequacy of Corporate Governance in Insured Depository Institutions
--Protection of Consumer Interests
--Security of Critical Infrastructure
--Management and Analysis of Risks to the Insurance Funds
--Effectiveness of Resolution and Receivership Activities
--Management and Security of Information Technology Resources
--Assessment of Corporate Performance
--Transition to a New Financial Environment
--Organizational Leadership and Management of Human Capital
--Cost Containment and Procurement Integrity
Adequacy of Corporate Governance in Insured Depository Institutions
A number of well-publicized announcements of business failures,
including financial institution failures, have raised questions about
the credibility of accounting practices and oversight in the United
States. These recent events have increased public concern regarding the
adequacy of corporate governance and, in part, prompted passage of the
Sarbanes-Oxley Act of 2002. The public's confidence in the nation's
financial system can be shaken by deficiencies in the adequacy of
corporate governance in insured depository institutions. For instance,
the failure of senior management, boards of directors, and auditors to
effectively conduct their duties has contributed to some recent
financial institution failures. In certain instances, Board members and
senior management engaged in high-risk activities without proper risk
management processes, did not maintain adequate loan policies and
procedures, and circumvented or disregarded various laws and banking
regulations. In other instances, independent public accounting firms
rendered unqualified opinions on the institutions' financial statements
when, in fact, the statements were materially misstated. To the extent
that financial reporting is not reliable, the regulatory processes and
FDIC mission achievement, that is ensuring the safety and soundness of
the nation's financial system, can be adversely affected. For example,
essential research and analysis used to achieve the supervision and
insurance missions of the Corporation can be complicated and
potentially compromised by poor quality financial reports and audits.
Potentially the insurance funds can be affected by financial
institution and other business failures involving financial reporting
problems. In the worst case, illegal and otherwise improper activity by
management of financial institutions or their boards of directors can
be concealed, resulting in significant potential losses to the FDIC
insurance funds.
The Corporation has initiated various measures designed to mitigate
the risk posed by these concerns, such as reviewing the bank's board
activities and ethics policies and practices and reviewing auditor
independence requirements. In addition, the FDIC reviews the financial
disclosure and reporting obligations of publicly traded state nonmember
institutions as well as their compliance with other Securities and
Exchange Commission regulations and the Federal Financial Institutions
Examination Council-approved and recommended policies to help ensure
accurate and reliable financial reporting through an effective external
auditing program. Nevertheless, the adequacy of corporate governance
will continue to require the FDIC's vigilant attention.
Protection of Consumer Interests
The FDIC is legislatively mandated to enforce various statutes and
regulations regarding consumer protection and civil rights with respect
to state-chartered, non-member banks and to encourage community
investment initiatives by these institutions. Some of the more
prominent laws and regulations in this area include the Truth in
Lending Act, Fair Credit Reporting Act, Real Estate Settlement
Procedures Act, Fair Housing Act, Home Mortgage Disclosure Act, Equal
Credit Opportunity Act, Community Reinvestment Act of 1977, and Gramm-
Leach-Bliley Act.
The Corporation accomplishes its mission related to fair lending
and other consumer protection laws and regulations by conducting
compliance examinations, taking enforcement actions to address unsafe
or unsound banking practices and compliance violations, encouraging
public involvement in the compliance process, assisting financial
institutions with fair lending and consumer compliance through
education and guidance, and providing assistance to various parties
within and outside of the FDIC.
The FDIC's examination and evaluation programs must assess how well
the institutions under its supervision manage compliance with consumer
protection laws and regulations and meet the credit needs of their
communities, including low- and moderate-income neighborhoods. The FDIC
must also work to issue regulations that implement federal consumer
protection statutes--both on its own initiative and together with the
other federal financial institution regulatory agencies. One important
focus will be the Gramm-Leach-Bliley Act, as the Corporation must
ensure it has a quality program to examine institution compliance with
the privacy and other provisions of the Act.
The Corporation's community affairs program provides technical
assistance to help banks meet their responsibilities under the
Community Reinvestment Act. The current emphasis is on financial
literacy, aimed specifically at low- and moderate-income people who may
not have had banking relationships. The Corporation's ``Money Smart''
initiative is a key outreach effort. The FDIC must also continue
efforts to maintain a Consumer Affairs program by investigating
consumer complaints about FDIC-supervised institutions and answering
consumer inquiries regarding consumer protection laws and banking
practices.
Security of Critical Infrastructure
The adequate security of our nation's critical infrastructures has
been at the forefront of the Federal government's agenda for many
years. Specifically, the President's Commission on Critical
Infrastructure Protection (established in July 1996) was tasked to
formulate a comprehensive national strategy for protecting the nation's
critical infrastructure from physical and ``cyber'' threats. Included
among the limited number of systems whose incapacity or destruction
were deemed to have a debilitating impact on the defense or economic
security of the nation was the banking and finance system. With the
increased consolidation and connectivity of the banking industry in the
years since 1996, and with the new awareness of the nation's
vulnerabilities to terrorist attacks since September 11, 2001, the
security of the critical infrastructure in the banking industry is even
more important.
On May 22, 1998, the Presidential Decision Directive (PDD) 63 was
signed, calling for a national effort to ensure the security of the
nation's critical infrastructures. PDD 63 defined the critical
infrastructure as the ``physical and cyber-based systems essential to
the minimum operations of the economy and government.'' President Bush
declared that securing our critical infrastructure is essential to our
economic and national security and issued two Executive Orders (EO
13228, The Office of Homeland Security and the Homeland Security
Council and EO 23231, Critical Infrastructure Protection in the
Information Age) to improve the federal government's critical
infrastructure protection program in the context of PDD 63.
The intent of PDD 63 is to ensure that the federal government
maintains the capability to deliver services essential to the nation's
security, economy, and the health and safety of its citizens, in the
event of a cyber or physical-based disruption. Much of the nation's
critical infrastructure historically has been physically and logically
separate systems that had little interdependence. However, as a result
of technology, the infrastructure has increasingly become automated and
interconnected. These same advances have created new vulnerabilities to
equipment failures, human error, and natural disasters as well as
terrorism and cyber attacks.
To effectively protect critical infrastructure, the FDIC's
challenge in this area is to implement measures to mitigate risks, plan
for and manage emergencies through effective contingency and continuity
planning, coordinate protective measures with other agencies, determine
resource and organization requirements, and engage in education and
awareness activities. The FDIC will need to continue to work with the
Department of Homeland Security and the Finance and Banking Information
Infrastructure Committee created by Executive Order 23231 and chaired
by the Department of the Treasury, on efforts to improve the security
critical infrastructure of the nation's financial system.
Management and Analysis of Risks to the Insurance Funds
A primary goal of the FDIC under its insurance program is to ensure
that its deposit insurance funds do not require resuscitation by the
U.S. Treasury. Achieving this goal is a considerable challenge, given
that the FDIC supervises only a portion of the insured depository
institutions. The identification of risks to non-FDIC supervised
institutions requires effective communication and coordination with the
other federal banking agencies. The FDIC engages in an ongoing process
of proactively identifying risks to the deposit insurance funds and
adjusting the risk-based deposit insurance premiums charged to the
institutions.
Recent trends and events continue to pose risks to the funds. Over
the past year, 11 banks have failed and the potential exists for
additional failures. While some failures may be attributable primarily
or in part to economic factors, bank mismanagement and fraud have also
been factors in most recent failures. The environment in which
financial institutions operate is evolving rapidly, particularly with
the acceleration of interstate banking; new banking products and
complex asset structures; and electronic banking. The industry's
growing reliance on technologies, particularly the Internet, has
changed the risk profile of banking. The consolidations that may occur
among banks and securities firms, insurance companies, and other
financial services providers resulting from the Gramm-Leach-Bliley Act
pose additional risks to the FDIC's insurance funds. The Corporation's
risk-focused examination process must operate to identify and mitigate
these risks and their real or potential impact on financial
institutions to preclude adverse consequences to the insurance funds.
Another risk to the insurance funds results from bank mergers that
have created ``megabanks,'' or ``large banks'' (defined as institutions
with assets of over $25 billion). For many of these institutions, the
FDIC is the insurer but is not the primary federal regulator. Megabanks
offering new or expanded services also present challenges to the FDIC.
The failure of a megabank, for example, along with the potential
closing of closely affiliated smaller institutions, could result in
such losses to the deposit insurance funds as to require significant
increases in premium assessments from an institution.
Further, because of bank mergers and acquisitions, many
institutions hold both Bank Insurance Fund (BIF) and Savings
Association Insurance Fund (SAIF) insured deposits, obscuring the
difference between the funds. There is ongoing consideration of merging
the two insurance funds, with the thought being that the merged fund
would not only be stronger and better diversified but would also
eliminate the concern about a premium disparity between the BIF and the
SAIF. Assessments in the merged fund would be based on the risk that
institutions pose to the single fund. The prospect of different prices
for identical deposit insurance coverage would be eliminated. Also,
insured institutions would no longer have to track their BIF and SAIF
deposits separately, resulting in cost savings for the industry. The
Corporation has worked hard to bring about deposit insurance reform and
needs to continue to work with the banking community and the Congress
in the interest of eventual passage of reform legislation.
Another risk to the insurance funds relates to the designated
reserve ratio. As of March 31, 2002, the Bank Insurance Fund (BIF)
reserve ratio was at 1.23 percent, the first time it had fallen below
1.25 percent since 1995. By December 31, 2002, the BIF reserve ratio
was at 1.27, two basis points above the statutorily mandated designed
reserve ratio for the deposit insurance funds. If the BIF ratio is
below 1.25 percent, in accordance with the Federal Deposit Insurance
Act, the FDIC Board of Directors must charge premiums to banks that are
sufficient to restore the ratio to the designated reserve ratio within
1 year. The Corporation's challenge is to maintain or exceed the
designated reserve ratio, as required by statute.
The process for setting deposit insurance premiums, which is
closely related to the above discussion of the designated reserve
ratio, represents yet another significant risk to the insurance funds.
Insurance premiums are not generally assessed based on risk but rather
the funding requirements of the insurance funds. This approach has the
impact of assessing premiums during economic downturns when banks are
failing and likely not in the best position to afford the premiums.
Also, numerous ``free rider'' institutions have benefited from being
able to sharply increase insured deposits without contributions to the
insurance funds commensurate with this increased risk. This can occur
because the designated reserve ratio has not been breached thereby
triggering across-the-board premiums. Current deposit insurance reform
proposals include provisions for risk-based premiums to be assessed on
a more regularly scheduled basis than would occur using the existing
approach. Risk-based premiums can provide the ability to better match
premiums charged to institutions with related risk to the insurance
funds.
Effectiveness of Resolution and Receivership Activities
One of the FDIC's most important corporate responsibilities is
planning and efficiently handling the franchise marketing of failing
FDIC-insured institutions and providing prompt, responsive, and
efficient resolution of failed financial institutions. These activities
maintain confidence and stability in our financial system. The Division
of Resolutions and Receiverships (DRR) has outlined primary goals for
the following four business lines and each is accompanied by
significant challenges.
(1) Deposit Insurance.--DRR must provide customers of failed
financial institutions with timely access to their insured funds and
financial services. A significant challenge in this area is to ensure
that FDIC deposit insurance claims and payment processes are prepared
to handle large institution failures.
(2) Resolutions.--As DRR seeks to resolve failed institutions in
the least costly manner, its challenges include improving the
efficiency of contingency planning for institution failures and
improving internal FDIC communication and coordination as well as
communication with the other primary federal regulators to ensure
timely access to records and optimal resolution strategies.
(3) Receivership Management, Accounting, Internal Review, and
Customer Service.--DRR's goal is to manage receiverships to maximize
net return towards an orderly and timely termination and provide
customers of failed institutions and the public with timely and
responsive information. Related challenges include improving the
efficiency of the receivership termination process, improving claims
processing, continual assessment of recovery strategies, improving
investigative activities, and charging receiverships for services
performed under the Receivership Management Program (i.e., service
costing).
(4) Employees.--DRR employees need to possess the resources,
skills, and tools to perform the mission of the Division. One related
challenge is to ensure that Division personnel have sufficient legal
support for decision-making.
Management and Security of Information Technology Resources
Information technology (IT) continues to play an increasingly
greater role in every aspect of the FDIC mission. As corporate
employees carry out the FDIC's principal business lines of insuring
deposits, examining and supervising financial institutions, and
managing receiverships, they rely on information and corresponding
technology as an essential resource. Information and analysis on
banking, financial services, and the economy form the basis for the
development of public policies and promote public understanding and
confidence in the nation's financial system. IT is a critical resource
that must be safeguarded.
Accomplishing IT goals efficiently and effectively requires sound
IT planning and investment control processes. The Corporation's 2003
information management budget is approximately $171.9 million. The
Corporation must constantly evaluate technological advances to ensure
that its operations continue to be efficient and cost-effective and
that it is properly positioned to carry out its mission. While doing
so, the Corporation must continue to respond to the impact of laws and
regulations on its operations. Management of IT resources and IT
security have been the focus of several laws, such as the Paperwork
Reduction Act, the Government Information Security Reform Act (GISRA),
and most recently, the Federal Information Security Management Act of
2002 (FISMA). Similar to the requirements of GISRA, under FISMA, each
agency is required to report on the adequacy and effectiveness of
information security policies, procedures, and practices and compliance
with information security requirements of FISMA.
The Corporation has worked to implement many sound information
system security controls, but has not yet fully integrated these into
an entity-wide program. Additionally, efforts to identify sensitive
data, plan for and fund essential security measures, incorporate
security requirements in FDIC contracts, enhance software configuration
management, and measure the overall performance of the information
security program need continued attention. Frequently, security
improvements at the FDIC were the result of a reaction to specific
audit and review findings, rather than the result of a comprehensive
program that provided continuous and proactive identification,
correction, and prevention of security problems. There is also a need
to appoint a permanent CIO (vacant since September 2001) to strengthen
accountability and authority in the FDIC's information security
program.
The FDIC's progress in addressing the security weaknesses
identified in our 2001 Security Act evaluation report were offset by
the emergence of new information security weaknesses identified during
our 2002 evaluation, as well as the FDIC's internal evaluation
completed on January 10, 2003. Thus, management and security of
information technology resources continues to warrant management
attention.
Assessment of Corporate Performance
The Government Performance and Results Act (Results Act) of 1993
was enacted to improve the efficiency, effectiveness, and
accountability of federal programs by establishing a system for setting
goals, measuring performance, and reporting on accomplishments. The
Results Act requires most federal agencies, including the FDIC, to
prepare a strategic plan that broadly defines each agency's mission,
vision, and strategic goals and objectives; an annual performance plan
that translates the vision and goals of the strategic plan into
measurable annual goals; and an annual performance report that compares
actual results against planned goals.
The Corporation's strategic plan and annual performance plan lay
out the agency's mission and vision and articulate goals and objectives
for the FDIC's three major program areas of Insurance, Supervision, and
Receivership Management. The plans focus on four strategic goals that
define desired outcomes identified for each program area: (1) Insured
Depositors Are Protected from Loss Without Recourse to Taxpayer
Funding, (2) FDIC-Supervised Institutions Are Safe and Sound, (3)
Consumers' Rights Are Protected and FDIC-Supervised Institutions Invest
in Their Communities, and (4) Recovery to Creditors of Receiverships Is
Achieved. Through its annual performance report, the FDIC is
accountable for reporting actual performance and achieving these
strategic goals.
The Corporation has made significant progress in implementing the
Results Act and needs to continue to address the challenges of
developing more outcome-oriented performance measures, linking
performance goals and budgetary resources, implementing processes to
verify and validate reported performance data, and addressing
crosscutting issues and programs that affect other federal financial
institution regulatory agencies.
Transition to a New Financial Environment
On September 30, 2002, the FDIC executed a multi-year contract to
replace its core financial systems and applications with a commercial-
off-the-shelf software package. The FDIC Board had previously approved
contract expenditure authority for the New Financial Environment (NFE)
project totaling approximately $28.8 million. At the time the Board
case was approved, the FDIC estimated the total life cycle cost of NFE,
including FDIC staff time, to be approximately $62.5 million over 8
years. NFE is a major corporate initiative to enhance the FDIC's
ability to meet current and future financial management and information
needs.
Although NFE offers the FDIC significant benefits, it also presents
significant challenges. These challenges will test the Corporation's
ability to (1) maintain unqualified opinions on the FDIC's annual
financial statements through the system implementation and associated
business process reengineering; (2) manage contractor resources,
schedules, and costs; and (3) coordinate with planned and ongoing
system development projects related to NFE. Preliminary results of an
ongoing audit found that the FDIC had established key management
controls for the NFE project, but that opportunities for improvement
existed in the areas of project integration, communications, and risk
response planning.
Overall, the FDIC needs to ensure that the NFE Project team
successfully implements modern and reliable systems to improve
financial business processes and support current and future financial
management and information needs, while controlling costs for the new
environment to the maximum extent possible.
Organizational Leadership and Management of Human Capital
The FDIC has been in a downsizing mode for the past 10 years as the
workload from the banking and thrift crises of the late l980s and 1990s
has been accomplished. Over the past months, a number of division
mergers and reorganizations took place and the Corporation concluded
its 2002 buyout/retirement incentive programs. These most recent
incentive programs achieved a reduction of 699 staff and $80 million
projected savings in future operating costs. In total, over the past
10+ years, the workforce (combined from the FDIC and the Resolution
Trust Corporation) has fallen from approximately 23,000 in 1992 to
5,500 as of September 30, 2002.
By June 2003, the Corporation hopes to substantially complete
required downsizing, identify an appropriate skills mix, and correct
any existing skills imbalances. To do so, the Corporation continues to
carry out other features of its comprehensive program such as
solicitations of interest, reassignments, retraining, outplacement
assistance, and possible reductions-in-force. The Corporation has also
predicted that almost 20 percent of FDIC employees will be eligible to
retire within the next 5 years. As the Corporation adjusts to a smaller
workforce, it must continue to ensure the readiness of its staff to
carry out the corporate mission.
The Corporation must also work to fill key vacancies in a timely
manner, engage in careful succession planning, and continue to conserve
and replenish the institutional knowledge and expertise that has guided
the organization over the past years. A need for additional outsourcing
may arise and hiring and retaining new talent will be important. Hiring
and retention policies that are fair and inclusive must remain a
significant component of the corporate diversity plan. Designing,
implementing, and maintaining effective human capital strategies are
critical priorities and must be the focus of centralized, sustained
corporate attention.
A significant element of this performance and management challenge
relates to organizational leadership at the FDIC Board of Directors
level, specifically with respect to the current make-up of the Board.
The Board is a body whose strong leadership is vital to the success of
the agency and to the banking and financial services industry. The
Board is comprised of five directors, including the FDIC Chairman, two
other FDIC directors, the Comptroller of the Currency, and the Director
of the Office of Thrift Supervision. In order to ensure that the
balance between various interests implicit in the Board's structure is
preserved, the Board should operate at full strength. However, the
Board has been operating with an FDIC Director vacancy since September
1998. Accordingly, we have urged that vacancies on the Board be filled
as promptly as practicable in order to afford the FDIC the balanced
governance and sustained leadership essential to the agency's continued
success.
Cost Containment and Procurement Integrity
As steward for the Bank Insurance Fund and Savings Association
Insurance Fund, the FDIC seeks ways to limit the use of those funds. As
such, the Corporation must continue to identify and implement measures
to contain and reduce costs, either through more careful spending or
assessing and making changes in business processes to increase
efficiency. Many of the efforts described above as part of other
management and performance challenges (e.g., New Financial Environment,
Service Costing, corporate downsizing) attest to the Corporation's
ongoing efforts to do so.
A key challenge to containing costs relates to the contracting
area. To assist the Corporation in accomplishing its mission,
contractors provide services in such areas as information technology,
legal matters, loan servicing, and asset management. To achieve success
in this area, the FDIC must ensure that its acquisition framework--that
is, its policies, procedures, and internal controls--is marked by sound
planning; consistent use of competition; fairness; well-structured
contracts designed to produce cost-effective, quality performance from
contractors; and vigilant contract management and oversight.
The Corporation has taken a number of steps to strengthen internal
control and effective oversight. However, our work in this area
continues to show that further improvements are necessary to reduce
risks such as the consideration of contractor security in acquisition
planning, incorporation of information security requirements in FDIC
contracts, and oversight of contractor security practices. Other risks
include corporate receipt of billings for such items as unauthorized
subcontractors, unallowable subcontractor markups, incorrect
timesheets, unreasonable project management hours billed, conflicts of
interest, and unauthorized labor categories. The combination of
increased reliance on contractor support and continuing reductions in
the FDIC workforce presents a considerable risk to the effectiveness of
contractor oversight activities. Additionally, large-scale
procurements, such as Virginia Square II (a $111 million construction
project to house FDIC staff for the most part now working in leased
space in the District of Columbia) and the New Financial Environment,
necessitate continued emphasis on contractor oversight activities.
THE OIG'S FISCAL YEAR 2004 BUDGET REQUEST
The OIG is requesting a fiscal year 2004 appropriation of
$30,125,000 and will fund 168 full-time equivalent staff. The OIG's
operating budget for fiscal year 2004 totals about $27.8 million,
exclusive of new capital expenditures for computers and a new
government-wide funding mandate. This operating budget, which includes
the salaries, benefit costs, travel, and training expenses for our
employees, is 9 percent less than the fiscal year 2003 operating
budget. We are budgeting for capital expenditures of about $1.3 million
for replacing OIG docking station computers in accordance with the
FDIC's computer replacement schedule and for our electronic crimes unit
requirements. In addition, we are budgeting for certain potential
litigation expenses which, under Public Law 107-174, must now be paid
for with appropriated funds.
Our electronic crimes unit enables the OIG to conduct computer
forensic examinations where possible illegal activities have occurred
involving information technology. We have already employed the
capability in several investigations of suspected fraud that may have
occurred in banks prior to their closings due to insolvency. Additional
hardware and software will enhance this capability and keep it current
with changing technology.
The chart below shows the distribution of the OIG's budget by major
object classification. Mostly, the OIG budget is comprised of salaries,
benefits, and the necessary funding for travel and training expenses.
The FDIC OIG has been operating under an appropriated budget since
fiscal year 1998 in accordance with Section 1105(a) of Title 31, United
States Code, which provides for ``a separate appropriation account for
appropriations for each Office of Inspector General of an establishment
defined under Section 11(2) of the Inspector General Act of 1978.''
This funding approach is part of the statutory protection of the OIG's
independence. The FDIC OIG is the only appropriated entity in the FDIC.
The OIG's appropriation would be derived from the Bank Insurance Fund,
the Savings Association Insurance Fund, and the FSLIC Resolution Fund.
These funds are the ones used to pay for other FDIC operating expenses.
The fiscal year 2004 budget is about $1.3 million less than the
fiscal year 2003 appropriation. After adjusting for inflation, fiscal
year 2004 will be the eighth consecutive year that the OIG's budget
decreased. \1\ The graph below shows the OIG's budget history since I
became the Inspector General in 1996.
---------------------------------------------------------------------------
\1\ Prior to fiscal year 1998, the OIG budget was part of the FDIC
annual operating budget approved by the Board of Directors from deposit
insurance funds and other funds under the Board's stewardship.
As I discussed earlier, the OIG has significantly downsized not
only in the past year, but also since 1996. By statute, the FDIC and
the Resolution Trust Corporation (RTC) and their Offices of Inspector
General merged on January 1, 1996 and at that time, the combined OIG
employed 370. The proposed staffing for fiscal year 2004 will be less
than half of the 1996 staffing level. The OIG's budget and staffing
reductions have been possible due to the shrinking size of the FDIC,
completion of the carryover work from the RTC, prospects for continuing
health of the banking industry, and the Corporation's own staff
downsizing initiatives. Total FDIC employment has declined from a
combined FDIC-RTC peak of about 23,000 staff in early 1992 to 5,457 as
of December 31, 2002. The graph below shows the OIG authorized staffing
since the merger of RTC in 1996.
CONCLUDING REMARKS
Mr. Chairman and Members of the Subcommittee, I appreciate the
support and resources we have received from this subcommittee, the
Congress, and the FDIC over the past several years. As a result, the
OIG has been able to make a real difference in FDIC operations in terms
of financial benefits and improvements, and in strengthening our own
operations and efficiency. Our budget request for fiscal year 2004 is
modest in view of the value we add. We seek your continued support so
that we will be able to effectively and efficiently conduct our work on
behalf of the FDIC Chairman, the Congress, and the American public.
In this 25th year since passage of the Inspector General Act, I
take pride in my organization and the entire federal Inspector General
community and its collective achievements. Building on this legacy, we
inthe FDIC OIG look forward to new challenges and assisting the
Congress and corporate officials in meeting them.
______
AMERICAN BATTLE MONUMENTS COMMISSION
PREPARED STATEMENT OF MAJOR GENERAL JOHN P. HERRLING, USA (RET),
SECRETARY
Mr. Chairman and Members of the Committee: Thank you for the
opportunity to testify on the American Battle Monuments Commission's
fiscal year 2004 Appropriation Request. The special nature of the
American Battle Monuments Commission places it in a unique and highly
responsible position with the American people. The manner in which we
care for our country's Honored War Dead is, and should remain, a
reflection of the high regard in which we, as a nation, respect their
service and sacrifice.
The American Battle Monuments Commission is responsible for
commemorating the services of American Armed Forces where they have
served since April 6, 1917 (the date of U.S. entry into World War I)
through the establishment of suitable memorial shrines; and for
designing, constructing, operating, and maintaining permanent American
burial grounds in foreign countries. In performing these functions, we
administer, operate, and maintain twenty-four permanent memorial
cemeteries and twenty-five monuments, memorials, and markers in the
United States and fifteen countries around the world.
We have eight World War I and 14 World War II cemeteries located in
Europe, the Mediterranean, North Africa and the Philippines. All of
these cemeteries are closed to burials except for the remains of the
War Dead who may occasionally be discovered in World War I or World War
II battlefield areas. In addition, we are responsible for the American
cemeteries in Mexico City, established after the Mexican War, and in
Panama.
Presently, 124,917 U.S. War Dead are interred in these cemeteries--
30,922 of World War I, 93,245 of World War II and 750 of the Mexican
War. Additionally, 6,010 American veterans and others are interred in
the Mexico City and Corozal (Panama) American Cemeteries. Commemorated
individually by name on stone tablets at the World War I and II
cemeteries and three memorials on U.S. soil are the 94,132 U.S.
servicemen and women who were Missing in Action, or lost or buried at
sea during the World Wars and the Korean and Vietnam Wars.
We provide services and information to the public, friends, and
relatives who visit our cemeteries and memorials. This includes
information about grave and memorialization sites as well as location,
suggested routes and modes of travel to the cemeteries or memorials.
Immediate family members are provided letters authorizing fee-free
passports for overseas travel to specifically visit a loved one's grave
or memorial site. During fiscal year 2002, over 8 million people
visited our cemeteries and monuments worldwide, half of whom were
American. Photographs of individual headstones and sections of the
Tablets of the Missing on which the service person's name is engraved
are also available. These photographs are mounted on large color
lithographs of the cemeteries or memorials. In addition, we assist
those who wish to purchase floral decorations for placement at a grave
or memorial site in our cemeteries. A photograph of the in-place floral
arrangement is provided to the donor.
The care of these shrines to our War Dead requires a sizeable
annual program of maintenance and repair of facilities, equipment, and
grounds. This care includes upkeep of 131,000 graves and headstones; 73
memorial structures; 41 quarters, utilities, and maintenance
facilities; 67 miles of roadways and walkways; 911 acres of flowering
plants, fine lawns and meadows; nearly 69 acres of shrubs and hedges
and over 11,000 ornamental trees. Care and maintenance of these
resources are exceptionally labor intensive, therefore, personnel costs
account for over 53 percent of our budget for fiscal year 2004. Some of
this maintenance is performed by casual labor, in peak seasons, since
permanent cemetery staffs are not sized to provide all the required
maintenance during the peak-growing season. The remaining 47 percent of
our budget funds our engineering, maintenance, utilities, equipment,
and administrative costs.
As an organization responsible for permanent burial facilities, we
do not have the option of closing or consolidating cemeteries. Within
the context of the President's Management Agenda, we have continued our
efforts to achieve greater efficiency and effectiveness in the areas
where we do have alternatives.
STRATEGIC MANAGEMENT OF HUMAN CAPITAL
Such efforts demand the strategic management of human capital. We
analyze our work force to maximize the efforts of employees who deliver
our services.
In fiscal year 2000, ABMC and OMB conducted a joint productivity
study to determine if equipment modernization, leasing, outsourcing,
and automation improvements could increase the efficiency of our
cemetery workers. Industry experts from two major turf and grounds-
keeping equipment manufacturers participated in the study. They
concluded that opportunities existed to reduce work-hours associated
with labor-intensive operations, potentially offsetting the requirement
for additional personnel. During fiscal year 2001, we continued our
study and began procurement of modern, labor-efficient and safety-
related equipment identified in fiscal year 2000. During fiscal year
2002 and 2003, we continue to replace outdated equipment, enhance our
automation systems, and make improvements in our operations. In order
to continue productivity program enhancements, we are requesting $3.0
million for fiscal year 2004.
Managing our human capital demands that we have the right person
with the right skills in every position. In fiscal years 1998 and 1999,
we undertook the first comprehensive survey of our overseas personnel,
their position descriptions, and workloads since the early 1980's. This
survey identified a variety of discrepancies in how we staffed our
cemeteries. We took corrective action, and with the concurrence of OMB,
ensured consistency in staffing. In fiscal year 2002, we began a
worldwide manpower study which will further identify and
comprehensively outline our manpower requirements, position
descriptions, workloads and manpower distribution to ensure our work
force is properly deployed.
A key element of recruiting and retaining a talented work force is
fair compensation. To ensure equal pay for equal work we converted the
European Region from our legacy Cemetery System for classifying and
paying most of our foreign employees to the standard Foreign Service
National (FSN) pay system. This FSN system is used by State Department
and other federal departments employing foreign nationals overseas.
This will ensure that we have a pool of well qualified personnel to
fill our critical positions. Making this change resulted in an
additional requirement of $900 thousand a year in personnel
compensation. The investment will ensure our ability to recruit and
retain a quality work force.
I would like to thank the Congress for their support of our
personnel program by the inclusion of 20 FTE to compensate for the
reduction of the French workweek to 35 hours. This increase will allow
us to continue to maintain the finest Memorial Cemeteries in the world.
COMPETITIVE SOURCING
We have continued efforts to avoid using our work force to perform
tasks that are not inherently governmental and are readily available in
the commercial market place. In this area we are well advanced. When
Congress directed us to establish a World War II Memorial, we
outsourced the fund raising, design, construction, data management,
fulfillment processing, customer servicing, and public relations.
The success of this effort has been astonishing. It will soon
result in the first national memorial dedicated to the 16 million who
served in uniform during the war, the more than 400,000 who gave their
lives, and the millions who supported the war effort from the home
front.
Our competitive sourcing initiatives did not stop there.
Contributing to our efforts to improve financial management, in April
2000, we contracted with a software implementation consultant to assist
in the selection and development of an automated, integrated accounting
system that conforms to regulatory requirements. Our new commercial-
off-the-shelf system became operational in October 2001. The use of a
competitive source contractor allowed our government employees to focus
on our daily mission while the contractor ironed out the normal
wrinkles associated with implementing a new system. We are pleased with
the overall results and will continue to upgrade our capabilities so
that we will be among the leaders in financial management in the
Federal Government.
In addition, our Infrastructure Modernization Program (IMP) has
made extensive use of outsourcing to ensure that highly qualified firms
and individuals were contracted to perform engineering analysis and
reviews. Most construction and engineering projects at ABMC facilities
are contracted out, since these projects are usually unique and beyond
the capability of our limited staff.
Our cemeteries and their infrastructure range from 45 to 80 years
old. We began IMP in fiscal year 2001 in order to examine in detail the
infrastructure of our facilities and bring them up to today's
standards. With this we can avoid future uncertainty, work in a
programmed and efficient manner, and protect our investments in
facilities. The first phase of the IMP consisted of studies to identify
deficiencies in the various aspects of our infrastructure. In the
second phase, corrective actions are performed. So far studies of
electrical systems, the structural integrity (safety) aspect of our
facilities, and our water systems were completed by an Architectural &
Engineering firm. Corrective actions on electrical systems and
structural integrity began during late fiscal year 2001 and are
continued in fiscal year 2002 and fiscal year 2003. Considerable
electrical work was identified; fortunately, requirements for
structural work were of a limited nature. With the study on water
systems completed in fiscal year 2002, we are moving forward on
corrective actions. During fiscal year 2003, we are dedicating $2
million to IMP, and are requesting $2 million for fiscal year 2004 to
continue these essential projects in addition to the $2.1 million to
continue normal engineering and maintenance operations.
IMPROVED FINANCIAL PERFORMANCE
Since 1998, ABMC has been required to produce full financial
statements. In addition, these CFO Act financial statements are
independently audited by the Comptroller General. Each year, ABMC has
earned an unqualified opinion from GAO on our annual financial audits.
We recognize that improved financial performance is more than
achieving an unqualified audit opinion. It is about putting useful and
timely information in the hands of leaders with which they can make
decisions. Our new accounting system moves us toward that goal. Looking
to the future, we have included $552 thousand dollars in our fiscal
year 2004 budget to move to a web-based system that will enhance our
ability to make such information more readily available to our
decision-makers.
Closely related to efforts to expand e-government, in partnership
with the Department of the Treasury, we converted to full electronic
funds transfer banking for all foreign currency disbursements. Prior to
this, we maintained U.S. funds in separate overseas foreign currency
bank accounts under delegated disbursing authority from the Treasury.
Now disbursements flow electronically from our accounting system
through the Treasury's Kansas City Financial Center to the overseas
bank account of our vendors and employees. The initial conversion to
this electronic capability was not as seamless as expected. However,
the process is now stabilized and is allowing quicker payments for
customers, elimination of funds held outside the Treasury in foreign
bank accounts, and real automation of worldwide funds transfers.
Our new integrated accounting system and our successes on
international electronic funds payment and full financial audits are
moving ABMC toward new levels of financial excellence. We look forward
to the challenges of fiscal year 2004.
EXPANDED E-GOVERNMENT
Our efforts in expanding e-government go beyond the use of
electronic funds transfers overseas. They include how we deliver our
services to our citizens--the very heart of what we do.
Over the last several years, ABMC has expanded access to valuable
information through the use of on-line tools. We have a Web site which
allows visitors to gather information on our organization, cemeteries,
memorials, and their locations. Our European Region has an intranet web
site which provides details on their operations. In addition, we have
placed an interactive video system at the Korean War Veteran's Memorial
which allows visitors to view or print biographies of those lost in
that conflict.
We are also supporting the Administration's efforts to reduce the
number of payroll providers within the federal government. We are
working with OPM and GSA to transfer our internal, manual payroll
operations to a web-based system provided by a service provider, in our
case GSA. We fully support this effort as a way of saving money
throughout the government. However, that conversion may bring
additional conversion costs to us in fiscal year 2004. We are in the
process of solidifying our cost estimates.
BUDGET AND PERFORMANCE INTEGRATION
We are pressing forward in the budget process to ensure that our
funding requests support the objectives of the agency and the
President's Management Agenda. Our budget clearly ties to our Strategic
and Annual Performance Plans. In addition, these plans directly link to
the Commission's Management Discussion and Analysis (MD&A) statements
which are required as an integral part of the annual audit conducted by
the Comptroller General.
OTHER IMPORTANT PROJECTS
Normandy Interpretive Center
Congress, through Public Law 107-73, provided $5.0 million to ABMC
for fiscal year 2002, specifically for the partial cost of design and
construction of a new interpretive and visitor center at the Normandy
American Cemetery in France. In fiscal year 2003, Congress provided an
additional $4.0 million to continue this project. We have developed a
contract proposal and have begun the initial pre-design phase. Our
intent is to achieve an appropriate and comprehensive design, determine
and obtain total project funding, and begin construction during fiscal
year 2004.
Vietnam Veterans Plaque
Public Law 106-214 directed ABMC to oversee the placement of a
plaque ``within the Vietnam Veterans Memorial containing an inscription
intended to honor those Vietnam veterans who died after their service
in the Vietnam War, but as a direct result of that service, and whose
names are not otherwise eligible for placement on the Memorial Wall.''
The law clearly stated that federal funds may not be used to design,
procure, or install the plaque. We are in the process of working this
important project through the requirements of the Commemorative Works
Act and anticipate completion within the next year.
WWII Memorial
Beyond our primary mission of operating and maintaining and
improving the management of twenty-four memorial cemeteries and twenty-
five monuments, memorials, and markers, our attention has also been
focused on the design and construction of the World War II Memorial.
Congress provided legislative authority for siting the memorial in
the prime area of the capital, which includes the National Mall. The
total estimated cost of the memorial project is $170.5 million, which
includes site selection and design, construction, a National Park
Service maintenance fee required by the Commemorative Works Act,
groundbreaking and dedication ceremonies, fund raising and
administration of the project from its inception in 1993 through
projected completion in 2004.
The Commission of Fine Arts (CFA), the National Capital Planning
Commission (NCPC) and the Department of Interior approved selection of
the Rainbow Poolsite, a 7.4-acre area at the east end of the Reflecting
Pool between the Lincoln Memorial and the Washington Monument.
The public fund raising began in earnest in March 1997 when the
ABMC announced that former Senator Bob Dole would serve as the National
Chairman of the World War II Memorial Campaign. He was joined in this
endeavor by National Co-Chairman Frederick W. Smith, founder and CEO of
FedEx Corporation. The fund-raising efforts continued to be positive
during fiscal year 2002, building on the groundwork and success of
previous fiscal years. The campaign received $11.6 million in
contributions during the fiscal year 2002, bringing the total funds
received from all sources, including the federal government, to $186
million. This total increased to about $189 million as of January 2003.
Congress also approved several legislative items that continue to
support the memorial project. Public Law 106-117, signed November 30,
1999, granted ABMC permanent authority to solicit and receive funds and
preserves any such funds in ABMC controlled interest bearing Treasury
Accounts, including any funds remaining after completion of the
memorial and increased ABMC's authority to accept volunteer services
and to use intellectual property interests. In addition, Public Law
106-398, signed October 30, 2000, designated $6 million of the proceeds
from the sale of titanium from the National Defense Stockpile for
completion of the design, groundbreaking, construction, maintenance,
and dedication of the memorial.
Our greatest challenge has been to ensure that construction is
completed so that as many of the World War II generation as possible
will live to see and be honored by the memorial. A construction permit
was issued by the National Park Service in January 2001, but a small
coalition of groups opposed to the site and design had filed a federal
lawsuit to block the project. Construction, which could have begun in
March 2001, was delayed by this legal action. Public Law 107-11, signed
by President Bush on Memorial Day 2001, directed that the memorial be
constructed expeditiously at the dedicated Rainbow Pool site. On the
basis of this legislation, the federal lawsuit was dismissed, clearing
the way for award of a construction contract in June 2001. Actual
construction began in September 2001 and the memorial is expected to be
completed in the spring of 2004 and will be dedicated on May 29, 2004.
Since 1923 the American Battle Monuments Commission's memorials and
cemeteries have been held to a high standard in order to reflect
America's continuing commitment to its Honored War Dead, their
families, and the U.S. national image. The Commission intends to
continue to fulfill this sacred trust while ensuring the prudent
expenditure of appropriated funds.
The American Battle Monuments Commission appropriation request for
fiscal year 2004 is $32,400,000.
______
NEIGHBORHOOD REINVESTMENT CORPORATION
PREPARED STATEMENT OF ELLEN LAZAR, EXECUTIVE DIRECTOR
Neighborhood Reinvestment Corporation is pleased to submit its
testimony for the record. This testimony is based on the experience and
considerable successes of 226 community development organizations
serving more than 2,300 urban, suburban, and rural communities. These
nonprofit partnerships are collectively known as the
NeighborWorks network and operate in 49 states, the District
of Columbia, and Puerto Rico.
The Neighborhood Reinvestment Corporation was created by Congress
in 1978. Since that time, Neighborhood Reinvestment and its affiliated
NeighborWorks network have responded to communities in need,
championed homeownership for Americans of modest means, and created a
network of excellence in the housing and community development field.
This could not have been accomplished without this Subcommittee's
commitment of federal funds. In fiscal year 2002, the
NeighborWorks system generated nearly $1.7 billion in direct
investment, helping nearly 70,000 families obtain and maintain safe and
affordable rental and homeownership housing.
We thank the Subcommittee for supporting Neighborhood Reinvestment
through the fiscal year 2003 budget appropriation of $105 million, and
we look forward to briefing you on our outcomes next year. Neighborhood
Reinvestment's fiscal year 2004 budget justification outlines proposed
activities at a $115 million budget level, an increase of $10 million
over the fiscal year 2003 budget justification. With this additional
$10 million, the NeighborWorks system will continue to
increase our homeownership efforts, and meet rising personnel costs and
health care expenditures to maintain the Corporation's committed
professional staff.
This year Neighborhood Reinvestment celebrates its 25th
anniversary. As the environment in which we work has changed
dramatically, our mission has become even more relevant and our
services are in high demand. Neighborhood Reinvestment is well
respected in the housing and community development field, and the
NeighborWorks brand is seen as a sign of the highest quality.
Since our founding, Congress and a long succession of administrations
have consistently remained supportive of our activities. As we
celebrate our past with immense pride, we want to look to the future
and position the NeighborWorks system to respond to the
critical needs that our nation's communities face.
OVERVIEW OF THE NEIGHBORWORKS SYSTEM
Created by an act of Congress in 1978 (Public Law 95-557),
Neighborhood Reinvestment Corporation works with 226 local community
development nonprofits, and Neighborhood Housing Services of America
(NHSA) to accomplish its mission, as outlined by its authorizing
statute. This coordinated effort is known as the
NeighborWorks system.
THE NEIGHBORHOOD REINVESTMENT CORPORATION
Neighborhood Reinvestment's partnership with local housing and
community development organizations supports residents, businesses and
local governments in their efforts to revitalize their communities.
Neighborhood Reinvestment has five core activities:
--We assist existing NeighborWorks organizations to expand
their geographic and programmatic scope and help other
organizations to become chartered members of the
NeighborWorks network. Currently, we work with 226
NeighborWorks organizations nationwide in over 2,300
communities, and we expect to invite 12 additional
organizations to join the network in fiscal year 2003.
--We fund NeighborWorks organizations by supporting their
capital projects and operations to enable them to create and
develop their own community-revitalization initiatives from a
solid asset base. In fiscal year 2002, this resulted in $1.7
billion of direct investment in America's communities, creating
a powerful engine for revitalization.
--We provide sophisticated and specialized technical assistance to
NeighborWorks members to more effectively and
efficiently reach underserved communities. In 2002, more than
35,000 lower income families and individuals were able to
purchase, maintain or rehabilitate their home, over 72,000
families received pre- or post-purchase homebuyer education
services, and more than 34,000 rental units for lower income
households were owned or managed as a result of the work of the
NeighborWorks network.
--We conduct extensive review and oversight of
NeighborWorks organizations and NHSA, providing them
with an objective appraisal of their strengths and weaknesses,
which allows them to successfully manage their resources and
programmatic risks. Using a rigorous and formalized
organizational assessment process, each community development
organization in our network is evaluated annually and given a
report card covering performance in such areas as financial
management, board governance, contract compliance,
productivity, and resource development.
--We operate national Training Institutes open to anyone involved in
affordable housing and community revitalization, particularly
private- and public-sector practitioners and community leaders.
In 2002, more than 11,000 housing and community development
practitioners from every state received substantive training in
key aspects of community and economic development activity,
including real estate development, portfolio management,
leadership development and financial management.
These activities individually and collectively build the
productivity and strength of the NeighborWorks network and
the broader community development field.
THE NEIGHBORWORKS NETWORK
Neighborhood Reinvestment is the founder of the
NeighborWorks network, a collaborative group of community-
based nonprofits that has evolved to include 226 members active in more
than 2,300 communities across the country today. Regardless of their
target communities, NeighborWorks organizations function as
partnerships of local residents, lenders and other business leaders,
and representatives from local government. To achieve the locally-
identified goals, members of the NeighborWorks network
utilize the laboratory environment Congress intended to achieve
creative strategies, collaborate on best practices, and develop
flexible financing mechanisms.
Each organization is responsible for setting its own strategies,
raising funds, and delivering services. Most NeighborWorks
organizations provide homebuyer counseling, rehabilitation monitoring,
and targeted lending services that complement conventional lending
activity. Most NeighborWorks organizations also operate a
revolving loan fund to meet community credit needs such as gap
financing for home purchase loans, second mortgages for rehabilitation,
small-business loans, and acquisition and development of residential
and commercial real estate. The NeighborWorks network is the
only national community development nonprofit network with extensive
expertise in designing, originating, and servicing small non-
conventional loans to lower-income families. Clients often require
individual counseling and personalized assistance; however, this
concentrated effort pays off by creating new opportunities for first-
time homebuyers and by permitting existing homeowners to make
affordable improvements, all of which works to revitalize communities.
NEIGHBORHOOD HOUSING SERVICES OF AMERICA
NHSA works in partnership with the Neighborhood Reinvestment
Corporation to meet special secondary market needs of
NeighborWorks organizations and their clients. The primary
mission of NHSA is to operate a specialized secondary market created to
replenish the revolving loan funds and capital pools of local
NeighborWorks organizations.
With administrative and capital support provided by Neighborhood
Reinvestment, NHSA purchases community development loans at face value,
thereby allowing NeighborWorks organizations to originate
loans with interest rates and terms based on the borrowers' ability to
repay. NHSA's loan purchases provide a stream of capital into
NeighborWorks organizations' revolving loan funds, to meet
additional needs within their target neighborhoods.
OUTCOMES OF FISCAL YEAR 2002
With your backing and confidence, fiscal year 2002 proved to be a
groundbreaking year on many fronts. Congress provided Neighborhood
Reinvestment with an appropriation of $105 million; of which, $10
million was set-aside to encourage partnerships and training in
furtherance of the U.S. Department of Housing and Urban Development's
Section 8 homeownership option, and $5 million was set-aside to promote
the development of mixed-income rental properties that included
families with incomes below 30 percent of area median income.
In fiscal year 2002, the NeighborWorks network achieved
new levels of production, including:
--Generated nearly $1.7 billion in direct investment to targeted
communities;
--Made available affordable housing opportunities for nearly 70,000
families;
--Provided pre- and post-purchase homebuyer education and counseling
services to over 68,000 families; and
--Leveraged $15.80 in other investments for each dollar Congress
appropriated to Neighborhood Reinvestment.
Furthermore, the two set-asides allowed Neighborhood Reinvestment
and the NeighborWorks network to continue its role as
laboratory for the community development field.
--Neighborhood Reinvestment partnered with 53 NeighborWorks
organizations and 70 Public Housing Authorities in implementing
the Section 8 homeownership option. Over the past four years,
the NeighborWorks system has provided homebuyer
education to 2,000 families, produced over 200 new homeowners,
and educated 1,200 professionals on this new programmatic
opportunity.
--The NeighborWorks network developed 121 rental units
affordable to families with incomes below 30 percent of area
median income. These units were in 14 developments totaling
over 1,300 units. Remarkably, many of these extremely low-
income units will be affordable to families with incomes less
than 30 percent of area median income without the need for a
Section 8 voucher or certificate. Were it not for this special
set-aside, these units would not have been developed.
Lastly, we continued to provide high quality services to
NeighborWorks organizations, aiding their continuing work of
providing needed services in their communities. In fiscal year 2002,
Neighborhood Reinvestment and NHSA:
--Conducted organizational assessments of each
NeighborWorks organization;
--Provided over 11,000 individuals with training, amounting to over
188,000 contact hours;
--Purchased over $60 million in loans from NeighborWorks
organizations; and
--Distributed 69 percent of Neighborhood Reinvestment's appropriation
in the form of grants.
OUTCOMES FOR FISCAL YEAR 2004
For fiscal year 2004, we are requesting an appropriation of $115
million. At this funding level, Neighborhood Reinvestment will be able
to expand its services in support of the White House's initiative on
increasing minority homeownership and other homeownership activities,
as well as continue to recruit and retain staff that will increase its
service to the NeighborWorks network.
A $115 million appropriation will assist the
NeighborWorks network to:
--Leverage nearly $2.2 billion in direct total investment in
distressed communities;
--Use each dollar Congress appropriates to leverage $18 from other
sources;
--Assist nearly 79,000 families obtain and maintain safe and
affordable rental and homeownership housing; and
--Provide pre- and post-purchase homeownership counseling and
financial literacy training to nearly 84,000 families.
To support and expand these significant accomplishments, the
Neighborhood Reinvestment Corporation and NHSA will:
--Conduct 240 organizational assessments of member organizations;
--Provide 220,000 training contact hours to community development
leaders and practitioners through the Neighborhood Reinvestment
Training Institute and regional training venues;
--Disburse 69 percent of Neighborhood Reinvestment's congressional
funding in the form of grants; and
--Purchase $65 million in loans from NeighborWorks
organizations.
The main purpose of the $10 million increase over the President's
fiscal year 2003 budget will be used to help meet the aggressive goals
Neighborhood Reinvestment has set in support of the White House's
initiative to increase minority homeownership rates.
The added funding in fiscal year 2004 will also help Neighborhood
Reinvestment address rising personnel and benefits costs. While
Neighborhood Reinvestment staff has actually decreased since 1999,
benefits costs for our staff have risen. The increase in personnel and
operating costs is attributed to higher gross salaries and costs of
health care and other benefits. The increase in salaries includes a
five percent merit pool and small bonuses; the Corporation does not
provide a cost-of-living increase.
PRIORITIES FOR FISCAL YEAR 2004
In developing our fiscal year 2004 budget, we sought to continue
our excellent work from prior years, while defining more aggressive
expectations for the NeighborWorks system. We have always
worked to be good stewards of the funds that Congress has entrusted to
us, and we continue to diligently work to maximize our efficiency and
effectiveness. In order to meet these expectations, Neighborhood
Reinvestment and the NeighborWorks system will continue to
respond to communities in need, champion homeownership for families of
modest means, and create and sustain a network of excellence.
NETWORK OF EXCELLENCE
Regardless of their target communities, NeighborWorks
organizations function as partnerships of local residents, lenders and
other business leaders, and local government representatives. They
produce creative strategies, share best practices, and develop flexible
financing mechanisms. In order to facilitate, encourage and promote
this network of excellence, the Neighborhood Reinvestment Corporation
provides guidance, assistance and oversight in the following areas:
Financial Support
Equity capital grants are a critically important financing vehicle
that Neighborhood Reinvestment provides to NeighborWorks
organizations for capital and revolving loan funds.
NeighborWorks organizations use these grants to provide
equity and gap financing necessary to make loans for home purchases,
rehabilitation and small businesses, and provide financing for real
estate development.
Neighborhood Reinvestment also provides expendable grants to
NeighborWorks organizations to strengthen and increase their
organizational ability to develop and administer responsive products
and services. Particular emphasis is placed on activities crucial to
increasing production and efficiency, thereby generating sustained
community impact and ensuring the long-term success of the
organization.
Technical Assistance
In tandem with financial assistance, Neighborhood Reinvestment
provides a wide range of technical assistance. NeighborWorks
organizations request practical, systems-based assistance in
programmatic, organizational, administrative, financial or management
areas of strategic importance to their organization. Neighborhood
Reinvestment responds with a team of professionals familiar with each
organization's local market, environmental challenges, structure and
mission, and provides technical assistance in six key programmatic
areas: organizational development; resource development and marketing;
community revitalization, economic development and business planning;
technology and financial management systems; single-family housing and
lending; and real-estate development and management.
Organizational Assessment
As part of our responsibility to act as a good steward of federal
funding, and to protect the investment of other partners as well as the
high standards and the reputation of the NeighborWorks
network as a whole, Neighborhood Reinvestment Corporation is committed
to promoting and maintaining a network of high-performing, well-
managed, nonprofit housing and community development corporations that
deliver high quality services responsive to local needs and have a
measurable impact on their communities. One of the tools employed in
doing this is a uniform program review and assessment system.
Through a system of continuous monitoring, each
NeighborWorks organization is subject to an annual risk
assessment through either off-site or on-site program reviews. Off-site
reviews involve the collection and analysis of data about the
organization. These data are analyzed in eight risk areas on a
quarterly basis. If a risk alert is identified, the degree to which the
organization has the capacity to manage the risk is determined.
Training
A comprehensive, systematic program of training and informing
powerfully augments on-site technical assistance. The Neighborhood
Reinvestment Corporation is nationally recognized as the premier
provider of training in the housing and community development field,
having founded its Training Institute 15 years ago. Today, the
Neighborhood Reinvestment Training Institute offers more than 150
courses and reaches more than 5,000 people a year from more than 4,000
communities across America.
Neighborhood Reinvestment's Training Institutes are typically
scheduled five times each year at various locations around the country.
Approximately half of the attendees of the Institutes come from
organizations within the NeighborWorks network; the rest come
from other communities and organizations around the country. This is
one of the many ways that the support Congress provides Neighborhood
Reinvestment Corporation reaches not only the 2,300
NeighborWorks-assisted communities, but also the broader
community development field.
Beginning in 2002, Neighborhood Reinvestment introduced a unique
program for seasoned practitioners. The Advanced Practitioner Platform
requires participants to shape and focus their efforts on challenges
that can make a tangible difference for their organizations, and for
the housing and community development field. Participants establish
ambitious goals and hold themselves and each other accountable for
achieving them. This self-motivated and disciplined approach is fully
focused on ensuring the success of participants as they advance their
own work in building strong community-based organizations.
Expansions, Organizational Mergers and New Affiliates
In today's community development industry, effective and efficient
growth strategies do not necessarily mean creating or adding new
organizations. In many underserved areas, the most sensible and cost-
effective approach is to expand the reach or programmatic services of
an existing network member, or to facilitate a merger of two
organizations to create a more powerful organization with greater
impact and efficiency. Neither of these approaches results in the
addition of new organizations, yet both can result in productive
outcomes, more efficient use of resources, and expanded coverage.
Mergers are becoming an increasingly common practice. The combined
efforts resulting from mergers can result in achieving greater impact
at equal or less cost.
Neighborhood Reinvestment receives a far greater number of requests
for new affiliations than it can hope to satisfy responsibly. To
prioritize requests from new applicants, the Corporation seeks those
environments where its resources and assistance are likely to add the
greatest value to local efforts and produce the most pronounced impact.
Through a careful affiliation process, Neighborhood Reinvestment works
with interested existing community-based organizations to ensure that
before any organization is chartered as a NeighborWorks
entity, it is: sound and productive; led by a responsible board of
directors reflective of the community it serves; and, committed to a
mission compatible with the focus and priorities of the
NeighborWorks network.
RESPONDING TO COMMUNITIES IN NEED
Twenty-five years ago, the Neighborhood Reinvestment Corporation
was created because there was a noticeable void in the nation's lending
system; namely, there were few opportunities for families of modest
means to obtain mortgages and rehabilitation loans from the private
lenders. Although the larger environment in which the
NeighborWorks system operates has changed dramatically over
the years, the Corporation's role as a bridge between mainstream
financial institutions and lower-income communities remains relevant
and critical. Neighborhood Reinvestment and the NeighborWorks
network continue to operate in underserved communities that are home to
people who lack access to decent affordable housing, financial
products, services, and the kind of investments that sustain
communities.
Revolving Loan Funds
Because of their flexibility and local control, revolving loan
funds are central to the impact of the NeighborWorks system.
These loans are local pools of money administered by
NeighborWorks organizations to meet the lending needs of
borrowers who do not qualify under conventional loan underwriting
criteria and to serve as equity capital in support of major capital
projects. Funding comes from private- and public-sector investors as
well as from Neighborhood Reinvestment's equity capital grants. Most
revolving loan fund capital comes from local sources--loans and grants
made by banks, insurance companies, foundations, local governments and
other local investors. In fiscal year 2002, nearly $95 million from
NeighborWorks revolving loan funds were invested in
communities.
Loans are made at flexible rates and terms that fit the lower-
income borrower's ability to repay, and are typically secured by a lien
on the property, often a second or third lien to allow for investment
by other public and private sector entities. Seventy-one percent of
loans made through NeighborWorks revolving loan funds are
made to very low- or low-income households, 53 percent to minority-
headed households, and 45 percent to female-headed households. The
liquidity of local revolving loan funds is maintained by selling loans
to NHSA.
Supporting Rural Efforts
In 2002, 60 NeighborWorks organizations identified their
primary service areas as rural communities, which is 27 percent of the
NeighborWorks network and comprises the fastest growing
segment of the network. Moreover, as our existing
NeighborWorks organizations expand their target areas, they
begin to capture rural areas with their services. The network has
proven its ability to address housing needs in rural communities,
particularly through our partnership with Rural NeighborWorks
Alliance. With seed funding from Neighborhood Reinvestment and the
Northwest Area Foundation, rural NeighborWorks organizations
have grown a shared revolving loan fund that provides bridge financing
for local housing or economic development projects at below-market
rates. With current loan assets of over $2.1 million, the Rural
NeighborWorks Alliance has made 40 loans totaling more than
$4.5 million to 14 rural NeighborWorks organizations. These
loans have supported the production of 413 units of housing and 26
economic development projects, and leveraged $33 million in total
project financing.
Using Multifamily Rental as an Asset
Understanding the importance of multifamily rental housing in a
comprehensive neighborhood revitalization strategy, a group of
NeighborWorks organizations formed the
NeighborWorks Multifamily Initiative in 1999. Together, these
organizations own more than 34,000 units of affordable and well-
maintained rental housing. The members of the NeighborWorks
Multifamily Initiative make it their mission to provide sustainable
multifamily homes, which are characterized over the long-term by:
--Affordability, as defined by local market conditions;
--Ongoing economic viability;
--High quality maintenance and management; and
--Access to on-site learning centers designed to advance the personal
assets of residents--academic success of youth, employability
of adults, financial savings, and homeownership.
With $5 million provided by Congress in fiscal year 2002, the
Corporation embarked on an ambitious effort to create mixed-income
multifamily properties serving families and individuals below 30
percent of area median income. With that funding, Neighborhood
Reinvestment provided 14 grants, which funded the development of those
units affordable to families with extremely low-incomes. The
congressional funding produced 121 units affordable to extremely low-
income families. These units accounted for nine percent of the total
units in the properties in which they were located, while 79 percent of
the units were affordable to families with incomes between 30 and 60
percent of area median income. The remaining 12 percent of the units
were affordable to families with incomes greater than 60 percent of the
area median. The $5 million congressional set-aside helped invest over
$141 million in targeted communities. Further, these units were
developed in a myriad of settings--urban, suburban, rural, large and
small developments as well as scattered site. Most importantly, many of
these units will be affordable to extremely low-income families without
need for a Section 8 voucher or certificate or other form of on-going
subsidy. The report summarizing preliminary findings of this effort can
be found in the Corporations fiscal year 2004 Budget Justification.
CHAMPIONING HOMEOWNERSHIP FOR AMERICANS OF MODEST MEANS
Neighborhood Reinvestment and the NeighborWorks network
have been particularly active promoting homeownership. Over the past 10
years, the NeighborWorks Campaign for Home Ownership has made
significant headway. The combined efforts of the Campaign created more
than 60,000 new homeowners and provided counseling to over 350,000
individuals. As a result, $5 billion was invested in many of America's
distressed communities.
Supporting the President's Homeownership Goals
For years, the NeighborWorks system has been a leader in
bringing homeownership opportunities to all Americans. Among the
families assisted by the NeighborWorks Campaign for Home
Ownership from 1998 through 2002, 54 percent are racial and/or ethnic
minorities--compared to 19 percent minorities served by the
conventional market (based on 2000 HMDA data).
In June 2002, President Bush announced a national goal of
increasing the number of minority homeowners by at least 5.5 million by
the end of this decade. The NeighborWorks system has been
active partners in the development and unveiling of the White House's
initiative on increasing minority homeownership. Rather than making
changes in its basic strategies, the Corporation will expand the tools
and efforts that have proven to be the most effective in addressing
critical areas affecting homeownership opportunities, particularly for
minorities and other underserved populations such as Spanish-speaking
families who are not bilingual.
In support of the White House's initiative, over the next ten years
the NeighborWorks system will:
--Make available housing counseling assistance to more than 650,000
families, of which 59 percent will be minority households;
--Provide direct home-ownership assistance to more than 130,000
families, of which more than 59 percent are estimated to be
minority families;
--Provide training, outreach, translation and other supports with an
eye to increasing the minority homeownership rate; and
--Raise $750 million in private sector social investments for NHSA's
secondary market activities.
NeighborWorks Campaign for Home Ownership
The NeighborWorks Campaign for Home Ownership is the
largest initiative of its kind to bring families of modest means into
the economic mainstream by helping them achieve homeownership.
Neighborhood Reinvestment has coordinated this joint effort of banks,
insurance companies, secondary markets, government, the real estate
community and others, involving more than 140 local community-based
NeighborWorks organizations since the initial launch of the
NeighborWorks Campaign for Home Ownership in 1993.
Over the past 10 years, Neighborhood Reinvestment and the
NeighborWorks network have met challenging goals and
accomplished significant outcomes through the NeighborWorks
Campaign for Home Ownership, including:
--Assisted more than 60,000 families to become homeowners, of which
54 percent are minority and 67 percent have incomes below 80
percent of area median income;
--Provided more than 350,000 individuals with pre-purchase homebuyer
education and counseling services; and
--Invested more than $5 billion in America's distressed neighborhoods
and communities.
The Campaign for Home Ownership, a partnership among Neighborhood
Reinvestment and NeighborWorks members, has focused on
supporting NeighborWorks organizations to help establish
clear, aggressive goals, and define and abide by high quality
standards. Innovative tools and ideas, such as Full Cycle Lending,
SM NeighborWorks HomeOwnership Centers, SM
Financial Fitness, and Section 8 homeownership, have also been
developed and supported. More recently, Neighborhood Reinvestment and
members of the NeighborWorks network have begun to work with
families even earlier in the process, through a financial education
program called Financial Fitness. The Corporation has developed
standards, adapted and created training materials, trained trainers
through the Neighborhood Reinvestment Training Institute, and initiated
a pilot Financial Fitness program at 39 NeighborWorks sites
nationwide. This program intends to give participants an understanding
of basic finances and healthy financial relationships that benefit both
the individual and the community.
By the end of calendar year 2002, NeighborWorks
organizations enrolled over 8,700 people in the training, and graduated
more than 5,500 individuals. Of these, nearly 59 percent are
minorities, 93 percent are renters, 65 percent are women, and 75
percent have incomes below 80 percent of the area median income.
The Campaign for Home Ownership has set new goals for the next five
years, including
--Creating 50,000 new homeowners, including 30,000 minority
homebuyers.
--Assisting 50,000 families to preserve homeownership and improve
their homes through housing rehabilitation, maintenance,
repairs, delinquency and foreclosure prevention, loss
mitigation, and refinancing.
--Establishing a coordinated outreach, public information and
counseling effort to reach 500,000 families through educational
programs, such as Financial Fitness classes, anti-predatory
lending efforts, pre- and post-purchase counseling, and
expansion of NeighborWorks HomeOwnership Centers.
SM
--Working with up to 10 pilot NeighborWorks organizations
to establish geographically-targeted revitalization efforts,
which will include homeownership promotion as well as single-
and multi-family real estate development, resident leadership,
and commercial and economic development.
--Promoting the growth of the homebuyer education industry through
the development of up to 10 national alliances, establishing
national standards for training and certifying homebuyer
educators and counselors, and providing tools and best
practices that can help the industry become more effective,
efficient and sustainable.
Helping Section 8 Families Move to Homeownership
The NeighborWorks system is dedicated to expanding
homeownership opportunities across the country, particularly for
families and individuals with low and moderate incomes. One of the most
innovative programs used in this effort is the Section 8 homeownership
option. Strong technical and financial support from the Neighborhood
Reinvestment Corporation has enabled NeighborWorks
organizations to serve as a bridge between private lenders and public
housing authorities to make homeownership a reality for qualified
Section 8 voucher holders. Congress has propelled the
NeighborWorks network's efforts by providing funding
specifically targeted to NeighborWorks organizations
partnering with Public Housing Authorities (PHAs).
In recognition of the early success of this effort, the
Corporation's fiscal years 2001 and 2002 appropriation included a total
of $15 million set-aside to develop capacity and effective
partnerships. Most of the funds were used to capitalize
NeighborWorks organizations' revolving loan funds serving as
a source for second mortgages, with a smaller portion being used for
capacity-building grants. These grants helped some
NeighborWorks organizations tailor their pre- and post-
purchase services to the specific needs of their Section 8 population,
develop unique systems to work with a Section 8 voucher and the PHA, or
defray a portion of the costs associated with hiring additional staff
to implement the program. The appropriation set-asides also support a
performance-monitoring component with assistance from a third-party
consulting and research firm.
The set-asides helped fund 53 NeighborWorks organizations
develop partnerships with 70 PHAs, provide 2,000 families with pre-
purchase homebuyer education, and resulted in over 200 new homeowners.
The median income of these families was slightly over $24,000, compared
to the median family income of the typical U.S. buyer of $48,991. These
partnerships are built upon the NeighborWorks network's solid
experience in pre- and post-purchase counseling, innovative mortgage
financing and in leveraging public resources and private investment.
Both the multifamily and Section 8 homeownership efforts of the
NeighborWorks network exemplify Neighborhood Reinvestment's charter: to
operate as a laboratory for the community development field in order to
identify models and practices that keep America's communities strong
and vital.
CONCLUSION
Let me close by thanking the Subcommittee for the wonderful
opportunity you have given the NeighborWorks system to serve
America's communities, and to ask for your continued support. After 25
years, Neighborhood Reinvestment Corporation continues to strive for
the maximum efficiency in the delivery of its services to America's
communities. We are proud of the work that the NeighborWorks
system has accomplished over the last quarter century; we also know
that more work is left to be done.
Our proposed priorities for fiscal year 2004 allow us to continue
the balance between efficiency and creativity, between responsible
stewardship and locally-controlled programmatic flexibility. This
Subcommittee has been our most vocal supporter in productively
maintaining this balance since 1978.
Neighborhood Reinvestment Corporation is committed to building
healthy, strong and safe communities all across America. Your continued
support is vital to us in accomplishing this goal.
______
SELECTIVE SERVICE SYSTEM
PREPARED STATEMENT OF LEWIS C. BRODSKY, ACTING DIRECTOR
PREFACE
For many years, I had the privilege of accompanying past Directors
of the Selective Service System in their appearances before this
Committee while serving in the capacity of the Agency's Director of
Public and Congressional Affairs. Time and circumstances caused me to
change roles early this year and today I am pleased to represent the
Selective Service System as its Acting Director. Director Rascon
resigned his position on January 2, 2003, because of health reasons;
and I do not know how long it will take for the President to nominate
and the Senate to confirm a new Director. But I can assure you that the
Selective Service System continues to drive forward. We are improving
registration compliance, shifting our focus in consonance with the most
likely needs of the Department of Defense (DOD), and undergoing
restructuring in line with the President's Management Agenda.
I welcome this opportunity to support the President's fiscal year
2004 appropriations request of $28,290,000 for the Selective Service
System. This is a 6.8 percent increase over the current fiscal year.
The proposed budget will cover the cost of current services, provide a
small program increase for unavoidable information technology changes,
and accommodate a 3.6 percent annual salary increase. By adjusting its
operational priorities, reducing full-time military staffing, and
employing state-of-the-art information technologies over time, the
Agency has been able to accomplish its statutory responsibilities
without interruption.
CAPABILITIES
The SSS stands ready to perform its mission. It can conduct a draft
that is efficient, fair, equitable, and accepted by the public, should
the President and the Congress authorize a return to a draft. It is
also ready to administer a program of alternative community service for
men who are classified as conscientiously opposed to military service.
With its routine communication with all men in the U.S., 18 through 25
years old, and its ability to mobilize national manpower on a large
scale, the Agency is also capable of performing additional human
resource support missions related to national security or service, if
so directed.
I am pleased to report that the men and women of Selective Service
are making a good Agency even better. For example, the Agency continues
its close partnership with the DOD by providing direct support to Armed
Forces recruiting and accessions processing. Specifically, Selective
Service provides the names of its registrants to the Secretary of
Defense for recruiting purposes, in accordance with a provision in
Military Selective Service Act. Additionally, we have taken this
cooperation a step further since January 2000, by continuing an
effective joint mailing program. As we reported previously to this
Committee, information about Armed Forces opportunities and a business
reply card are now enclosed with the registration acknowledgment that
the SSS sends to each new registrant. Thus, the Defense Department
benefits by ``piggy-backing'' on our routine mailings and it reimburses
us for the additional costs.
Beyond these tangible services, Selective Service also promotes an
intangible national benefit. For present and future generations of
America's young men, it represents a very critical link between
society-at-large and today's volunteer military. It is a reminder that,
as Americans, every young man is personally responsible for ``providing
for the common defense'' in the time-honored tradition of preceding
generations.
PRIORITY AREAS
Since becoming Acting Director less than four months ago, I have
focused Agency activities on complying with President Bush's Management
Agenda. We are reexamining our processes and restructuring the SSS to
meet the most likely manpower needs of the Department of Defense while
finding improved ways of serving the public. Three initiatives are
especially noteworthy because they are providing the largest return on
investment while producing more effective and responsive customer
service. Each satisfies the Administration and Congressional charges to
Federal agencies to evolve into performance-based organizations.
1. Organizational Realignment.--Expanding upon our fiscal year 2002
Agency's Workforce Restructuring Plan, a complete ``bottom-up review''
is underway with contractor assistance. After several recent
consultations with senior Defense manpower officials, it is apparent to
me that the Agency's current organizational structure is not as
responsive or relevant to the contemporary needs of the DOD as it might
be. Consequently, we are shifting our programmatic emphasis from
readiness to conscript of large numbers of untrained men within 193
days of activation to a draft of smaller numbers of critical skills
personnel in shorter time frames. This necessary realignment can be
accomplished within current resources and will probably result in less
management overhead, merging of offices and programs, and increased
potential for outsourcing some Agency functions. The benefits accrued
from strategic management of human capital, competitive sourcing,
improved financial performance, expanded e-Government, and better
integration between budget and performance should substantially
increase Agency efficiency. In this ongoing review, there are no
``sacred cows.'' All functions and programs are on the table, and each
structural change and staffing decision will be driven by practical,
cost-conscious considerations.
2. Registration Compliance.--The SSS registration compliance rate
for men 18 through 25 years old declined steadily from a high of over
98 percent in 1991 to a low point of 88 percent in 1999. This decrease
was cause for serious concern because of our self-imposed ``fairness''
criteria. We believe a compliance rate of less than 90 percent would
contribute to a lack of public confidence because the resulting draft
would not be considered fair or equitable. The public would believe,
rightly so, that not everyone who should be in the manpower pool is
accounted for; and therefore those who are registered have an increased
chance of being called for involuntary service. This is why SSS
Directors since 1992 have placed a consistent priority on raising the
registration rate. Our concentrated efforts to halt and reverse the
downward spiral are achieving success. We held the line at 88 percent
overall registration compliance in 2000 and, at the end of 2001, we had
turned the corner and started an upward trend, achieving 89.1 percent
compliance by 18- to 25-year old men. For 2002, Selective Service
achieved 91 percent compliance. The other good news is that the
statistics for fiscal year 2002 are indicating a 74 percent compliance
rate for ``on-time'' registration of men turning 18. This is the
highest compliance rate achieved for this year group since 1994. We
will continue to use a combination of approaches and the attendant
resources will be traded off among other programs, if necessary. To
reinforce success, we:
--Are continuing to develop and distribute public service broadcast
messages to low compliance markets, together with new printed
materials. To support this effort, additional radio public
service announcements (at no cost for air time) in English and
Spanish are being distributed. These high-quality products have
received laudatory comments from viewers around the country and
are receiving no cost annual air play commercially valued at
$7.2 million.
--Have just revamped the interactive Selective Service pages on the
World Wide Web (http://www.sss.gov) where online registration,
database verification, the ability to file changes of
information, and a wealth of other Agency information are now
available to anyone with access to the Internet. For fiscal
year 2002, 69 percent of registrations reach the SSS through
electronic means, or about 135,000 registrations per month, and
we continue to expand our Website's capabilities. We are also
placing links to our site with other Federal, state and local
agencies and schools to enhance public education and facilitate
customer responsiveness.
--Are benefitting from an increasing number of states which link
obtaining a driver's license or state I.D. card to the
Selective Service registration requirement. These state laws
are currently providing the SSS with an average of 27,500
registrations per month. As of this month, 30 states, two
territories, and the District of Columbia have legislation in
place. They represent over 56 percent of the national 18-year-
old male registrant population and we are working closely with
additional states where such legislation is pending.
3. Information Technology (IT).--In concert with the President's
Management Agenda, we are convinced that in an era of constrained
resources, expanding workload, and performance-based organizations, one
major strategy must be to continue to invest in IT. It has been the
SSS' major approach to improving customer service and organizational
productivity while conserving limited human and fiscal resources. We
began modernization of the Agency's technology infrastructure fiscal
year 1997 and plan to continue through fiscal year 2004 and beyond. Our
Information Technology Architecture Plan focuses on adding new
information technologies to the Agency's infrastructure. In fiscal year
2004 we must make additional refinements in hardware and software which
are driven primarily by changing customer needs and revised government
requirements. The goal of upgrading the Agency's IT platforms is based
on re-engineering critical mainframe computer systems. Integrating the
SSS mainframe computer systems into more user-friendly Web-based
applications is our strategy over the next several years. By embracing
change and applying technology, Agency activities are leading toward a
paperless work environment and a more efficient means of doing
business. These revamped systems are paying important dividends in end-
user convenience and better service to our customers, as well as
increasing the productivity of the Agency's workforce.
ADAPTABLE TO CHANGE
We are also ready to aid the Administration and the Congress with
any future initiatives that could capitalize upon Selective Service's
unique capabilities. There has been much dialogue among the public,
private groups, academia, and the Administration concerning a draft,
volunteerism, and national service. Selective Service has a wealth of
experience in managing volunteers (Board Members), and administering
programs of alternative community-based service (for men classified as
Conscientious Objectors) throughout its 63-years of existence. The
Agency also has experience in conducting a fair and equitable
classification procedure to determine who should serve when not all can
serve. To ensure fairness and equity, each SSS Board is a melting pot
of civic-minded men and women reflecting the racial, cultural and
ethnic diversity of the young men within the communities it serves.
Through these volunteers, a unique bond has been formed at the grass
roots with young American men, society-at-large, and the U.S. Armed
Forces. Through the Selective Service structure, every American
community plays a positive role in providing for the common defense. In
short, this Agency has extensive practical experience in identifying,
contacting and classifying people to participate in a national security
or service program. If called upon to support any new ``service''
initiatives of the Administration, Selective Service can lend its
expertise and ample experience to the task.
CLOSING
Today, Mr. Chairman, thanks in very large measure to your personal
interest in this Agency and the continuing support of the Subcommittee
and its staff members, the Selective Service System stands prepared to
perform its time-tested responsibilities, if so directed. The fiscal
year 2004 appropriation request of $28,290,000 will be invested
prudently in one of the Nation's important security assets. Its
rationale for existence and its credentials are the same: to provide a
compact, cost efficient structure capable of rapid expansion in a
crisis; to provide manpower to our Armed Forces as required; and to do
it fairly, equitably, and within the necessary time frames. The
Selective Service System remains resolute in its organizational
realignment and operational streamlining. It has improved service to
its customers, reinforced its commitment to America, and stands ready
to play a key role in our Nation's future.
Thank you, Mr. Chairman.
DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND
INDEPENDENT AGENCIES APPROPRIATIONS FOR FISCAL YEAR 2004
----------
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
NONDEPARTMENTAL WITNESSES
[Clerk's Note.--The following testimonies were recieved by
the Subcommittee on VA, HUD and Independent Agencies for
inclusion in the record. The submitted materials relate to the
fiscal year 2004 budget request.
The subcommittee requested that public witnesses provide
written testimony because, given the Senate schedule and the
number of subcommittee hearings with Department witnesses,
there was not enough time to schedule hearings for non-
departmental witnesses.]
PREPARED STATEMENT OF THE LAC DU FLAMBEAU BAND OF LAKE SUPERIOR
CHIPPEWA INDIANS
The Lac du Flambeau Reservation is in the ``North Woods Area'' of
Wisconsin and our homeland is called Waswagoning. The Lac du Flambeau
tribal members always want to remind Congress about the special and
unique relationship the Federal government has with Indian tribes. The
Federal government is obligated by Treaty and Executive Order to
provide for critically needed social, education, health and
governmental services to the Band and its members in exchange for the
land, water, natural resources and peace our forefathers provided. As
Congress and the President work on the fiscal year 2004 Budget, the
obligations and commitments to provide for these services must not be
forgotten and should be given the highest priority. The Lac du Flambeau
Band submits the following issues and concerns to the Subcommittee
concerning veteran's affairs, housing and the environment.
VETERANS' ADMINISTRATION
The Lac du Flambeau Band would like to address how the system is
failing our American Indian veterans with regard to accessing veterans'
benefits. American Indians across the country have the highest record
of military service per capita when compared with other ethnic groups.
These men and women have put their lives at risk to ensure the survival
of future generations and the freedom of all Americans, yet they
consistently have problems accessing basic benefits and services. It is
difficult and frustrating for our veterans to get to the County
Veterans Service Office (``CVSO'') located almost 50 miles away.
According to a resolution prepared by the Great Lakes Inter Tribal
Council in Lac du Flambeau, there are approximately 40,000 American
Indian veterans in Wisconsin. It is estimated that only 5 percent of
these veterans are aware of the benefits programs for veterans.
We urge the Committee to establish Tribal Veterans Service Office
(``TVSO'') on Indian Reservation to render services locally to American
Indian veterans and their families. Currently, the Band is not a
recipient for Federal or State grants in regards to securing tribal
veterans' benefits. By Congress appropriating $150,000 as a proposed
budget, we can finance and secure office space for a TVSO at Lac du
Flambeau. We ask that this TVSO have autonomy and the same benefits and
opportunities as the CVSO. We respectfully request that Congress honor
our warriors and ensure that these American Indian veterans can access
veterans' benefits with fewer barriers by placing a TVSO on the Lac du
Flambeau Reservation.
HOUSING
There is a shortage of housing on the Lac du Flambeau Reservation.
Additionally, the housing that is in place is substandard and lending
to an ever-increasing black mold problem. Four hundred and twenty five
(425) homes were tested for mold with 85 percent testing positive for
mold. In March 2000, the Bureau of Indian Affairs released a Labor
Force Survey that shows the Lac du Flambeau enrolled membership
population is 3,056 with a projected population growth of 4 percent by
the year 2005. The Tribal Housing Authority's NAHASDA Block Grant is
$1,639,625.00. The Band's housing stock is 191 rental units and 68
Mutual Help units--a total of 249 units and over half the units are
considered to have overcrowded living conditions. The rental units are
17 to 38 years old and are in substandard condition, most of which
require major rehabilitation and modernization. There are currently 300
Lac du Flambeau members on the waiting list for housing. Band members
continue to move back to the reservation only to find overcrowded
living conditions and no housing.
Lac du Flambeau's Chippewa Housing Authority continues to face the
housing shortage and inadequate funds to renovate existing units. Toxic
mold has been found in 85 percent of our housing units. Because of the
shortfalls in funding, it becomes a balancing act to determine if you
use the funding for housing development, rehabilitation of older units
or toxic mold re-mediation. Housing development, renovation and
modernization needs must be addressed simultaneously. Unfortunately,
lack of funding is an obstacle in providing safe, healthy and
affordable housing for the tribal membership.
President Bush's budget proposal for fiscal year 2004 is $641
million for the Indian Housing Block Grant (IHBG), the major Native
American housing program authorized by the Native American Housing
Assistance and Self-Determination Act of 1996 (NAHASDA). This amount is
identical to funding requested and enacted for the past three years.
According to data from the National Association of Home Builders, the
median cost of a new home has risen 34 percent over the past ten years
and has increased almost 5 percent annually over the past four years.
In order for the Committee to understand the funding shortfall, it is
estimated that Lac du Flambeau's Housing Authority would require $2.5
million per year for maintenance and rehabilitation for existing
NAHASDA units, $1.2 million annually for new housing development and
$1.5 million for administrative costs. The Band urges Congress to
increase the NAHASDA appropriations to a level that is responsive to
the growing housing needs on the reservation.
It must be noted that the toxic mold is a very serious problem in
Lac du Flambeau and we also urge Congress to hold hearing on this
specific problem in Indian Country. The purpose of the hearing would be
to determine the causes, extent of and cost to fix the problem. Toxic
mold has been associated with numerous health related issues.
ENVIRONMENT
The Lac du Flambeau Reservation is rich with water bodies and
forests with nearly 50 percent of the reservation is saturated with
water. The total resource areas are as follows: Wetlands--24,000 acres
(27.7 percent), Lakes & Rivers--17,897 (20.7 percent), Forested
Uplands--41,733 (48.2 percent), and Other--3,000 (3.5 percent).
Approximately 25 percent of the reservation area is owned by non-Band
members and is considered fee land. The Band was blessed with a very
diverse ecosystem and a huge responsibility to protect, enhance, and
conserve the natural resources for present and future generations.
Based on the above the Lac du Flambeau Band is very concerned with
the decrease in Section 106 funding in fiscal year 2004. It is estimate
that Band, along with other Region V Tribes, will have their 106
funding reduced by $30,000-$32,000 in fiscal year 2004. The reasons for
the funding shortfall are two-fold.
Starting this year EPA is using Census 2000 data. Through fiscal
year 2002 EPA had used 1990 census data. Use of the Census 2000 data
redistributes funds among the Regions. The updated numbers of eligible
Tribes and the new census data caused Region 5's allocation of 106
funds to drop from approximately $4.14 million in fiscal year 2002 to
$3.87 million in fiscal year 2003.
EPA is currently reworking their funding formula to address
Oklahoma Tribes. The criteria being used to allocate 106 funds to date
have not given credit to Region 6 for all of the land areas of these
Tribes. When land areas and population data for the Oklahoma Tribes are
built into the allocation formula, this has the effect of reducing the
allocation to Region 5 (and other Regions, particularly Region 8).
Although the numbers are still evolving, Region 5's allocation could go
down to approximately $3.29 million in fiscal year 2004.
To off set the decrease in funding due to the combine factors
mentioned above, the Band urges Congress to make additional funds
available in EPA's 2004 budget for Section 106 grants to Tribes.
EPA has also helped the Band in developing underground storage
tank, radon, and solid waste programs on the reservation. These
programs have succeeded largely due to the General Assistance Program
(``GAP''). The monies received since 1992 have allowed the Band to make
significant progress, however $110,000 is not adequate to support the
implementation of these federally mandated programs. Indian Tribes are
required to comply with many environmental mandates. We need an
increase to at least $135,000 for fiscal year 2004 to support
additional staff, which is needed to assist the Band in protecting and
conserving our natural resource.
In addition, the recently enacted Tribal Cooperative Agreement
Authority, which allows the EPA to award cooperative agreements to
Tribes to assist in implementing Federal environmental programs, should
be renewed permanently or at least for an additional year. A specific
tribal set aside for this new program would also be helpful to the Band
in achieving necessary environmental goals. Currently this Cooperative
Agreement Authority does not carry any additional funding allocation
for Tribes. Tribes are precluded from obtaining any State dollars
allocated for similar EPA/State Cooperative Agreement Authority.
WATERS OF THE UNITED STATES
The scope of federal jurisdiction under the Clean Water Act was
severely limited by the U.S. Supreme Court decision in the case of the
Solid Waste Association of North Cook County (SWANCC). Today many
waters are treated as ``jurisdictionally isolated waters'' that are no
longer subject to CWA regulation. Congress should redefine waters of
the United States to cover these ``jurisdictionally isolated waters''
back within the scope of CWA jurisdiction. Many States are taking steps
to close this loophole, which is resulting in a jurisdictional
patchwork of water regulations, where there used to be uniformity.
Wetlands are essential for clean water, flood control and fish and
wildlife habitat.
______
PREPARED STATEMENT OF THE GREAT LAKES INDIAN FISH AND WILDLIFE
COMMISSION (GLIFWC)
ENVIRONMENTAL PROTECTION AGENCY APPROPRIATIONS
GLIFWC seeks $311,000 from various EPA programs for its ceded
territory treaty rights environmental protection program:
Lake Superior Bi-National Program and Lake Superior LaMP.--$80,000
for continued GLIFWC participation in the Bi-National Program, in the
on-going work regarding the Lake Superior LaMP, and in IJC, SOLEC and
other Great Lakes forums.
Ceded Territory Fish Consumption Mercury Advisory Program.--
$141,000 to continue GLIFWC's long-standing program to collect and test
fish for mercury content and to communicate up-to-date information to
tribal communities and the public through health care providers and
Geographic Information System (GIS) maps.
Lake Superior Habitat and Human Health Research.--$90,000 for
research projects on contaminant levels in Lake Superior whitefish and
on potentially contaminated whitefish and lake trout spawning grounds
in Lake Superior.
GLIFWC'S GOALS FOR EPA'S FISCAL YEAR 2004 BUDGET
GLIFWC asks Congress to provide adequate appropriations for EPA's
programs that fund GLIFWC's work in these areas, and to instruct EPA to
provide the funds to meet GLIFWC's needs. Over the past 8 years,
Congress and EPA have funded GLIFWC's treaty rights environmental
protection program under a variety of budget categories, including:
wetlands (Section 104(b)(3) funds), coastal environmental management
(CEM), the Great Lakes National Program Office (GLNPO), the Office of
Pollution Prevention and Toxics, and environmental justice grants. \1\
The Clean Water Act (33 U.S.C. Sec. 1268) requires the EPA and GLNPO
to integrate tribal agencies in the development and implementation of
action plans to carry out the United States' responsibilities under the
Great Lakes Water Quality Agreement. In addition, GLIFWC and its member
tribes are among the partners implementing the Great Lakes Strategy for
2002--A Plan for the New Millennium.
---------------------------------------------------------------------------
\1\ The Administration casts its proposed fiscal year 2004 budget
in terms of the EPA strategic plan's goals. For GLIFWC's ceded
territory purposes, the relevant goals and related funding categories
appear to be: Goal 2: Clean and Safe Water; Goal 4: Preventing
Pollution and Reducing Risk in Communities, Homes, Workplaces and
Ecosystems; Goal 6: Reduction of Global and Cross-Border Environmental
Risks; Goal 7: Quality Environmental Information; and Goal 8: Sound
Science, Improved Understanding of Environmental Risk and Greater
Innovation to Address Environmental Problems.
---------------------------------------------------------------------------
CEDED TERRITORY TREATY RIGHTS AND GLIFWC'S ROLE
Tribal members rely upon fish, wildlife, and plants for religious,
cultural, medicinal, subsistence, and economic purposes. Their treaty
rights mean little if contamination of these resources threatens the
health, safety, and economy of tribal members, or if the habitats
supporting these resources are degraded.
GLIFWC was established in 1984 as a ``tribal organization'' within
the meaning of the Indian Self-Determination Act (Public Law 93-638).
It exercises authority delegated by its member tribes to implement
federal court orders and various interjurisdictional agreements related
to their treaty rights. GLIFWC assists its member tribes in:
--securing and implementing treaty guaranteed rights to hunt, fish,
and gather in Chippewa treaty ceded territories; and
--cooperatively managing and protecting ceded territory natural
resources and their habitats.
The requested EPA funds would assist GLIFWC in achieving its
broader conservation/habitat protection mission by maintaining
partnerships with other resource managers and scientific/conservation
organizations and by funding specific environmental research projects.
For the past 17 years, Congress and Administrations have funded
GLIFWC through the BIA, EPA and other agencies to meet specific federal
obligations under: a) a number of U.S./Chippewa treaties; b) the
federal trust responsibility; c) the Indian Self-Determination Act, the
Clean Water Act, and other legislation; and d) various court decisions,
including a 1999 U.S. Supreme Court case, affirming the treaty rights
of GLIFWC's member Tribes. GLIFWC serves as a cost efficient agency to
conserve natural resources, to effectively regulate harvests of natural
resources shared among treaty signatory tribes, to develop cooperative
partnerships with other government agencies, educational institutions,
and non-governmental organizations, and to work with its member tribes
to protect and conserve ceded territory natural resources.
Under the direction of its member tribes, GLIFWC operates a ceded
territory hunting, fishing, and gathering rights protection/
implementation program through its staff of biologists, scientists,
technicians, conservation enforcement officers, and public information
specialists. Its activities include: natural resource population
assessments and studies; harvest monitoring and reporting; enforcement
of tribal conservation codes into tribal courts; funding for tribal
courts and tribal registration/permit stations; development of natural
resource management plans and tribal regulations; negotiation and
implementation of agreements with state, federal and local agencies;
invasive species eradication and control projects; biological and
scientific research; and development and dissemination of public
information materials.
GLIFWC PROGRAMS CURRENTLY FUNDED BY EPA
GLIFWC currently administers EPA funding for a variety of ceded
territory environmental protection programs and studies.
1. Participation in the Lake Superior Bi-National Program.--Since
fiscal year 1996, EPA has provided CEM funds for a 1 FTE equivalent to
facilitate GLIFWC's participation in the Bi-National Program to Restore
and Protect Lake Superior, including preparation of the Lake Superior
LaMP and participation in various International Joint Commission (IJC)
and State of the Lake Ecosystem Conference (SOLEC) forums. In fiscal
year 2003, GLIFWC administered $77,000 in EPA CEM funds to facilitate
participation in these forums as well as in the implementation of the
Great Lakes Strategy for 2002--A Plan for the New Millennium.
2. Study of Proposed Crandon Mine in Wisconsin.--GLIFWC's work
related to the proposed mine includes hydrological modeling,
contaminant transport analysis, and baseline biomonitoring studies. In
fiscal year 2002, GLIFWC administered $68,700 in EPA wetlands (Section
104(b)(3)) funds to continue its technical studies and assessments. In
fiscal year 2003, Congress provided $144,000 for GLIFWC's review,
analysis and GIS mapping related to the mine, particularly as to
completion of an ongoing baseline biomonitoring project, participation
as a ``cooperating agency'' in the preparation of the federal EIS, and
maintenance of hydrological and contaminant transport expertise.
3. Research and Special Projects.--Since fiscal year 1997, EPA has
provided a combination of CEM, GLNPO, and Environmental Justice funds
for GLIFWC to conduct scientific research to produce data relevant to
the Bi-National Program/Lake Superior LaMP and to human health. In
fiscal year 2003, GLIFWC will continue to administer $82,000 from EPA's
Pollution Prevention and Toxics program and Environmental Justice
program to test several Lake Superior fish species for dioxin and
persistent organic pollutants.
FISCAL YEAR 2004 FUNDING NEEDS/RATIONALE
GLIFWC would use fiscal year 2004 funds for:
1. Participation in the Lake Superior Bi-National Program.--$80,000
for continued funding of GLIFWC staff (1 FTE equivalent, and related
travel and other expenses) who will participate in the Bi-National
Program, in the on-going implementation of the Lake Superior LaMP, in
IJC and SOLEC forums, and in the implementation of the Great Lakes
Strategy for 2002--A Plan for the New Millennium.
Rationale.--GLIFWC has been actively involved in the Bi-National
Program since 1993. However, it was not able to adequately participate
until EPA first provided CEM funds for this purpose in fiscal year
1996. As a result, GLIFWC currently serves on the Bi-National Program's
Task Force and Workgroup, and on the Workgroup's chemical, terrestrial
and habitat committees. Its staff Co-Chairs the Workgroup's habitat
committee and terrestrial committee. GLIFWC is participating in the on-
going review and implementation of the Lake Superior LaMP. It also
helps to liaison with other relevant Great Lakes institutions, such as
the Great Lakes Fishery Commission, on issues of mutual concern between
environmental and natural resource managers.
As for IJC forums, GLIFWC staff regularly attend the biennial IJC
meetings and provide periodic comments when issues arise in the
interim, such as on the matter of Great Lakes water diversions. As for
SOLEC, GLIFWC staff has addressed plenary sessions on the topic of wild
rice and has organized breakout sessions on wild rice.
This funding is necessary for GLIFWC to live up to its partnership
responsibilities under the Great Lakes Strategy for 2002--A Plan for
the New Millennium.
2. Ceded Territory Fish Consumption Mercury Advisory Program.--
$141,000 to continue GLIFWC's long-standing program to collect and test
fish for mercury content and to communicate testing results to tribal
communities and the public through health care providers and Geographic
Information System (GIS) maps.
Rationale.--Over the past seven years, GLIFWC has instituted an
unprecedented lake-specific mercury advisory program to help tribal
members and the general public consume fish as part of a healthy diet.
The health benefits of eating fish are well known, but can be
undermined if the fish are contaminated. GLIFWC has developed a system
for sampling and testing walleye and muskellunge fillets, and then
disseminating consumption advisories for specific lakes based upon the
mercury contaminant data for that lake. This allows harvesters to make
informed decisions about where they should fish and how much fish they
should eat from a particular lake.
GLIFWC has sampled and analyzed 1,919 walleye fillets harvested
from 137 previously un- or undersampled Wisconsin lakes. It has
combined its data with that previously collected by the State, with a
resulting mercury database of 4,951 walleye fillets. In addition,
GLIFWC has collected 94 walleye samples from 7 Minnesota lakes and 181
walleye samples from 14 Michigan lakes.
Over the years, as of 1999, GLIFWC's mercury testing surpassed the
State's in the Wisconsin ceded territories. Current state budget
crunches will only exacerbate this trend. Moreover, GLIFWC's recent
federal funding for its mercury testing program has subsided, most
notably with the completion of the ATSDR-funded Ojibwe Health Study.
GLIFWC seeks EPA funding to continue this program for three more
years, specifically for:
--Collecting and testing walleye and musky for mercury content.--
GLIFWC will continue to test 22 long term study lakes on an
alternating year basis. The goal is to provide a 10-year data
set for researchers to assess mercury trends in northern
Wisconsin waters. GLIFWC also will test an additional 42 lakes
over a three year period. All samples will be tested at the
University of Wisconsin-Superior's Environmental Health
Laboratory, which was established cooperatively by the Tribes
and University in 1990.
--Communication of testing results through Geographic Information
System (GIS) maps.--GLIFWC will continue to produce lake-
specific color-coded mercury advisory maps. Since 1995, these
maps have been used by tribal members and the general public to
identify lakes and sizes of ogaa (walleye) low in hazardous
methyl mercury. They are distributed to tribal communities at
registration stations, through GLIFWC's newspaper and other
publications, and through GLIFWC's Website (www.glifwc.org).
--Linkages with Health Care Networks.--GLIFWC also will continue to
provide this information to health care providers (Indian
Health Service and others). Since 1999, GLIFWC has provided its
maps and data to clinics, to tribal health care providers
serving the WIC program, and at local and regional nursing
conferences.
--Support the Memorandum of Understanding with the Wisconsin
Department of Natural Resources.--GLIFWC will continue to meet
its obligations under a 1996 agreement with the Wisconsin DNR
to share fish contaminant testing results. The DNR integrates
GLIFWC and state data to publish the State's annual fish
advisory document.
3. Continuing Research and Special Projects.--$90,000 for Lake
Superior habitat and human health research projects related to the Bi-
National Program and the Great Lakes Strategy for 2002--A Plan for the
New Millennium.
Rationale.--GLIFWC has undertaken a number of studies over the
years related to the Lake Superior ecosystem. For example, with GLNPO
and CEM funds, GLIFWC is preparing a report on the threat of wetland
and terrestrial exotic plants to Lake Superior, has studied sturgeon in
the Lake Superior basin, and has prepared GIS maps of fish spawning and
nursery locations for both native and exotic species. In addition, as
part of its ongoing natural resource contaminant/human health research,
GLIFWC used Environmental Justice grants to update its fish consumption
advisory database and to undertake wild rice contaminant research for
heavy metals.
For fiscal year 2004, GLIFWC would explore EPA funding for two
projects:
--Keweenaw Peninsula Mining Waste Assessment.--Assess impacts from
mining waste (stamp sands) dumped into Lake Superior near
Michigan's Keweenaw Peninsula during the late 1800s, map an
important whitefish and lake trout spawning reef in Keweenaw
Bay, and determine the distribution of stamp sands in relation
to the spawning reef.
--Lake Superior Whitefish Contaminant Assessment.--Assess mercury,
PCB and organochlorine levels in whitefish harvested by tribes
in western Lake Superior waters, and evaluate the new data in
relation to current fish consumption advisories.
______
PREPARED STATEMENT OF THE CITY OF ST. HELENA, CALIFORNIA
CITY OF ST. HELENA
The City of St. Helena is located in the center of the wine growing
Napa Valley, 65 miles north of San Francisco. The area was settled in
1834 as part of General Vallejo's land grant. The City of St. Helena
was incorporated as a City on March 24, 1876 and reincorporated on May
14, 1889.
The City from its inception has served as a rural agricultural
center. Over the years, with the growth and development of the wine
industry, the City has become an important business and banking center
for the wine industry. The City also receives many tourists as a result
of the wine industry. While, the main goal of the City is to maintain a
small-town atmosphere and to provide quality services to its citizens,
this is becoming increasingly difficult. Regulatory, administrative and
resource requirements placed on the City through the listing of
threatened and endangered species under the Endangered Species Act on
the Napa River, as well as significant Clean Water Act requirements
require the City with a small population base to face significant
financial costs.
The City of St. Helena is a General Law City and operates under the
Council-City Manager form of government. The City Council is the
governing body and has the power to make and enforce all laws and set
policy related to municipal affairs. The official population of the
City of St. Helena as of January 1, 2002 is 6,019. St. Helena is a full
service City and encompasses an area of 4 square miles. Because of its
size and its rural nature, St. Helena has serious infrastructure, as
well as, flood protection and environmental needs that far exceed its
financial capabilities.
The Napa River flows along the north boundary of the City of St.
Helena in northern Napa County. The overall Napa River Watershed
historically supported a dense riparian forest and significant wetland
habitat. Over the last 200 years, approximately 6,500 acres of valley
floor wetlands have been filled in and 45,700 acres of overall
watershed have been converted to urban and agricultural uses. This
degradation of natural habitats has had a significant effect on water
quality, vegetation and wildlife, and aquatic resources within the Napa
River Watershed.
Surface water quality of the Napa River is dependent upon the time
of year, runoff from York and Sulphur Creeks, and urban area
discharges. During the winter months when streamflow is high,
pollutants are diluted; however, sedimentation and turbidity is high as
well. During the summer months when streamflow is low, pollutants are
concentrated and oxygen levels are low, thereby decreasing water
quality. Agricultural runoff adds pesticides, fertilizer residue, and
sometimes sediment. Discharges from urban areas can include
contaminated stormwater runoff and treated city wastewater. The Napa
River has been placed on the Clean Water Act 303(d) List and TMDL
Priority Schedule due to unacceptable levels of bacteria,
sedimentation, and nutrients. It is against this backdrop that the City
of St. Helena faces its biggest challenges.
PROJECT NEED
While much of the City's character is tied to its location along
the Napa River, since 1853, it has been a continual battle defending
St. Helena and its residents from the flooding Napa River. The City of
Napa has suffered from 27 floods between 1862 and 1997, with the
largest flood occurring on February 18, 1986. Between 1961 and 1997,
Napa County residents suffered $542 million in property damage. In 1995
and 1997, the Napa River overflowed its banks, turning most towns along
the Napa River into churning tributaries, and forcing people to abandon
their homes and businesses (FEMA, 2001). In an effort to address not
only its significant flood management issues, but to improve the land,
habitat and water quality in the Napa River, the City has developed an
integrated plan.
The St. Helena flood protection and corridor restoration project is
a multi-objective project which will provide flood damage reduction
through restoration and re-establishment of the natural floodplain
along the project reach, setting back of levees and the re-creation and
restoration of a natural floodway corridor providing over 22-acres of
high value riparian forest. This forested area will improve both
terrestrial and fish habitat on the Napa River, which is listed by the
EPA as an impaired waterway. Steelhead and salmon recovery will be
improved by the project and passive recreation will provide Napa River
viewing and interpretive opportunities for local residents who now have
no access to this reach of the Napa River. The project will also
provide all-weather cross-Napa Valley access for the residents of the
City to its nearest hospital, which is presently inaccessible during
flood events greater than the 50-year probability storm.
The St. Helena Habitat Terraces, a portion of the overall St.
Helena plan, are critically needed to address water quality, habitat
and flood management issues. Given the Napa River's status by EPA as an
impaired waterway, immediate measures are necessary to improve water
quality. Storm water discharge from the City's urban area is a
significant water quality problem. The filtering of non-point source
storm water runoff provided by the habitat terraces is critical to meet
the City's TMDL and NPDES needs. This is an innovative non-structural
water pollution control approach which will have positive implications
for other communities across the country.
In addition, the Napa River and its riparian corridor are
considered Critical Habitat for Steelhead and Salmon Recovery, as well
as a significant migratory corridor for a number of birds that use the
Pacific Flyway. Without an integrated program to address the water
quality and the Endangered Species Act (ESA) habitat issues, both water
quality and key habitat issues will undermine the Napa River condition.
Therefore, the St. Helena Habitat Terraces are necessary to address the
key environmental issues for the Napa River.
PROJECT BENEFIT
The St. Helena Habitat Terraces would be developed to serve as low
velocity run-out zone in which sediments may be trapped during
intermediate and lower river flows. Any contaminants found in the
City's storm water system which will be discharged through the newly
vegetated terraced area to the west of the Napa River, may be retained
in the area during the first flush of the system each winter. The
Adaptive Management Plan being formulated by the City will address the
accumulation of these deposits and their impact on flood protection and
enhancement benefits.
The Habitat Terraces are part of a multi-purpose plan St. Helena is
developing to manage the flood and environmental issues along the Napa
River by re-creating and restoring the natural floodplain corridor
through the one mile project reach and re-connecting the Napa River to
its historic floodplain. Creation of flood and habitat terraces on the
east bank of the Napa River and flood terraces set at geomorphically
appropriate discharge elevations will be excavated and planted with
native habitat allowing for restoration of the natural floodplain
terraces.
Over 20 acres of rich floodplain riparian habitat will be re-
established and restored through re-vegetation of native communities of
willow/alder, vine/ash, Oak/Snowberry and Buckeye/Walnut in the newly
created overflow channels. Aquatic habitat will be improved through the
project reach through these plantings providing new Shaded Riverine
Habitat as well as through installation of large logs and woody debris
providing improved fish passage habitat. There is presently little
varied down wood in the existing river corridor due to demands for
regular river clearing to maximize floodwater conveyance. The St.
Helena project will rectify this situation providing a resting placed
for migrating salmonids.
Because of the critical storm water management and water quality
issues within the Napa River and its riparian corridor, which are
considered a critical habitat for the threatened steelhead, innovative
efforts like the St. Helena Habitat Terraces are important to address
the complexity of environmental issues facing St. Helena and are an
innovative approach to addressing local issues stemming from federal
statutes. This effort could be used as a model for other waterway and
riparian corridors across the country.
The City of St. Helena, therefore, respectively requests the
Committee's support of $2,000,000 in appropriations in fiscal year 2004
within the Environmental Protection Agency's Environmental Programs and
Management account, so that St. Helena may proceed with this unique
water quality and environmental restoration effort, the St. Helena
Habitat Terraces.
______
PREPARED STATEMENT OF THE UPPER MISSISSIPPI RIVER BASIN ASSOCIATION
The Upper Mississippi River Basin Association (UMRBA) is the
organization created in 1981 by the Governors of Illinois, Iowa,
Minnesota, Missouri, and Wisconsin to serve as a forum for coordinating
the five states' river-related programs and policies and for
collaborating with federal agencies on regional water resource issues.
As such, the UMRBA has an interest in the budget for the water programs
of the U.S. Environmental Protection Agency (EPA).
STATE POLLUTION CONTROL GRANTS (SECTION 106)
UMRBA supports the Administration's proposed 4 percent increase in
funding for Section 106 State Pollution Control Grants. Federal Section
106 funds, in combination with the states' matching dollars, support
the core state water quality programs, including water quality
assessment and monitoring, water quality planning and standard setting,
total maximum daily load (TMDL) development, point source permitting,
and training and public information. Adequate funds are particularly
critical to supporting the states' development and implementation of
total maximum daily loads. The tasks associated with developing TMDLs
for impaired waters include watershed characterization, computer
modeling and related analyses, allocation of permissible loads,
development of TMDL reports and plans, and public outreach and
stakeholder development. These responsibilities have the potential to
overwhelm state agency resources that are in many cases already
strained. Under the fiscal year 2004 budget proposal of $200 million,
the five states in the Upper Mississippi River Basin would be allocated
a total of $20 million in Section 106 funding. This funding is
fundamentally important to the states' ability to carry out their
responsibilities under the Clean Water Act.
TMDLS, WATER QUALITY CRITERIA & STANDARDS, AND WATER QUALITY MONITORING
& ASSESSMENT
EPA's fiscal year 2004 proposed budget for Environmental Programs
and Management (EPM) includes $25 million for TMDLs, $24 million for
Water Quality Criteria and Standards, and $14 million for Water Quality
Monitoring and Assessment. All of these amounts reflect modest, but
important, increases over the Agency's fiscal year 2003 request. The
TMDL funding will help support EPA's TMDL-related responsibilities,
such as developing guidance and technical support for states and
approving/disapproving TMDLs in a timely fashion. Funding for water
quality criteria and standards will support EPA's standards-related
efforts, such as development of criteria and helping states link
standards to TMDLs. The funding for water quality monitoring and
assessment will enable EPA to help states and local watershed groups
enhance their monitoring programs, including increased use of a
probabilistic approach to support water quality decision-making. UMRBA
supports funding for these three key EPM programs which, coupled with
the Section 106 grants, will help states fulfill their basic Clean
Water Act responsibilities.
CLEAN WATER STATE REVOLVING FUNDS
The UMRBA is deeply concerned about the lack of support in the
Administration's fiscal year 2004 budget proposal for the Clean Water
State Revolving Fund (CWSRF), which helps address wastewater
infrastructure needs. The CWSRF has made tremendous contributions to
improving the nation's water quality. In fiscal year 2002, the five
Upper Mississippi River Basin states received a total of $177 million
in CWSRF funding. However, the CWSRF is proposed to be cut by 63
percent in fiscal year 2004. This would mean $850 million for the
CWSRF, rather than its authorized and historical level of $1.35
billion. Given the flexibility to redirect wastewater funds to the
Drinking Water State Revolving Fund (DWSRF), even less than $850
million might well be available for the wastewater SRFs. While the
flexibility to shift between these two programs can help the states
address their most pressing needs, it is no substitute for adequate
funding. Estimates of the nation's wastewater infrastructure needs
certainly vary, as evidenced in the Congressional deliberations on new
water infrastructure financing legislation. However, there is
absolutely no doubt there are substantial unmet needs. The high demand
for these funds underscores the need to reauthorize CWSRF funding and
increase annual federal appropriations to $2 billion.
STATE NONPOINT SOURCE GRANTS (SECTION 319)
The Administration has requested $238.5 million for the Section 319
state nonpoint source grant program, slightly less than the $240
million provided in fiscal year 2003. Nonpoint sources are one of the
major causes of water pollution in the Upper Mississippi River Basin,
which drains the nation's agricultural heartland. For each of the past
three years, the five states in the Upper Mississippi River Basin have
been allocated a total of $34 million in nonpoint source grants.
Adequate funding for Section 319 and complementary efforts, including
the USDA's conservation programs, is essential to meeting the region's
major water quality challenges. With the expansion of USDA conservation
programs, it is especially important to fund the Section 319 program as
well, given that it supports a variety of efforts unrelated to
agriculture, such as Phase II stormwater work. Thus, at a minimum,
UMRBA urges Congress to maintain funding for state nonpoint source
grants at the fiscal year 2003 level of $240 million, recognizing that
continued progress in addressing nonpoint pollution will require
significantly increased resources.
ENVIRONMENTAL MONITORING AND ASSESSMENT
EPA's fiscal year 2004 budget includes $38.87 million for its
Environmental Monitoring and Assessment Program (EMAP). EMAP is of
particular interest to the UMRBA because it includes the Central Basin
Integrated Assessment, as well as research related to environmental
indicators. The Central Basin assessment focuses on large rivers in the
Mississippi Basin, which are challenged by long term loadings of
nutrients, sediments, and toxic chemicals, as well as extensive habitat
alternatives. This Central Basin EMAP initiative is intended to fill
the scientific gaps (e.g., indicators, sampling design, and sampling
methodology) that currently limit our ability to assess baseline
conditions and measure the performance of environmental protection
activities. The resulting advancements in monitoring technology and
approaches could be potentially useful in guiding the development of
TMDLs on major rivers such as the Missouri and Mississippi Rivers. In
addition, the states bordering the Upper Mississippi River are hopeful
that EMAP will help in the development of ``indicators of impairment.''
Such indicators are critically needed for large border rivers to
improve the states' ability to meet their Clean Water Act
responsibilities on these rivers. Fiscal year 2003 marked the beginning
of the Central Basin EMAP. In fiscal year 2004, EPA will begin the
first full year of monitoring to measure the conditions of these large
rivers. UMRBA thus supports proposed funding for the Central Basin
EMAP.
HYPOXIA ACTION PLAN AND WATERSHED GRANTS
The UMRBA is disappointed that the Administration's fiscal year
2004 budget proposal does not include additional new resources to
address the recommendations in the Hypoxia Action Plan, submitted by
the Mississippi River/Gulf of Mexico Watershed Nutrient Task Force in
January 2001. The states in the Upper Mississippi River Basin have
consistently said that reductions in nutrient inputs to the Gulf of
Mexico and monitoring to evaluate the effectiveness of these efforts
will only be possible if significant new budgetary resources are
provided by the federal government. While the states continue to
support the goals and strategies set forth in the Action Plan, little
progress will be made to reduce the Gulf hypoxic zone and improve water
quality conditions throughout the basin without a major federal
financial commitment.
EPA's fiscal year 2004 budget documentation indicates that the
agency intends to focus a portion of the Targeted Watershed Grants to
support implementation of the Hypoxia Action Plan. Although UMRBA is
pleased that the unique needs of the Mississippi River Basin are being
recognized, the watershed grant program established just last year,
does not, in fact, represent additional new funding. The $20 million
recommended by the Administration for Targeted Watershed Grants in
fiscal year 2004 comes at the expense of water quality cooperative
agreements (Section 104(b)(3) grants), which are recommended to be
reduced by $20 million in fiscal year 2004. Although UMRBA supports
funding for watershed planning and management, it should not come at
the expense of other well-established programs.
______
PREPARED STATEMENT OF THE SANTA CLARA VALLEY WATER DISTRICT, SAN JOSE,
CALIFORNIA
PERCHLORATE CLEANUP PROJECT, SANTA CLARA COUNTY, CALIFORNIA--SUMMARY
This statement urges the Committee's support for an appropriation
add-on of $1 million, for technical and logistical assistance to the
San Martin Community and local and state agencies regarding the cleanup
of a 7\1/2\ mile groundwater plume of perchlorate that has affected
several hundred water supply wells.
STATEMENT OF SUPPORT
Background.--The Central Coast Regional Water Quality Control Board
(Regional Board) is providing regulatory oversight of the Olin
Corporation led investigation and cleanup for perchlorate contamination
in the San Martin Area associated with their former highway flare
manufacturing plant. The Regional Board currently does not have
adequate resources to address the magnitude of the perchlorate
contamination which has affected several hundred drinking water supply
wells. Groundwater is currently the only source of drinking water in
this area and over 1,500 families have been provided with bottled
water. Significant concerns remain regarding this community's exposure
to perchlorate in their drinking water and perchlorate accumulation in
agricultural crops and livestock. To address these concerns and ensure
that the groundwater basin in this area is aggressively restored and
cleaned up the Santa Clara Valley Water District (District) is
requesting Federal assistance. We respectfully request funding to
facilitate a prompt and complete cleanup of groundwater resources in
the San Martin area of Santa Clara County.
Demographics.--
--Established residential community to Silicon Valley.
--Important agricultural resource area.
--Community provides housing to Silicon Valley workers.
Perchlorate Investigation and Cleanup Status.--The source of the
perchlorate is attributed to a former safety flare manufacturing plant
owned by Olin Corporation that opened in 1955. Potassium perchlorate is
a component of these flares. Perchlorate contamination in groundwater
was initially detected at low concentrations in shallow groundwater
samples collected at the site of the facility in August 2000, as part
of due diligence investigation by a prospective purchaser of the site.
The Regional Board directed an investigation of the site that led to
sampling of nearby domestic wells in the fall of 2002. After the
detection of perchlorate in domestic wells immediately downgradient of
the site, the District became concerned that significant contamination
could exist over a larger area. Additional sampling of domestic wells
performed in December 2002 by the District confirmed that suspicion.
San Martin does not have a municipal water system and the water supply
comes from over 2,000 domestic and small water system wells in the
area. Groundwater is the sole source of their water. Working with the
Regional Board, the District acted swiftly to notify private well
owners of the potential problem in the affected area and assured that
their wells would be sampled. The District has also offered to provide
free bottled water to those in the affected area while investigation of
the contamination continues. To date the District has sampled over 1000
domestic wells in the San Martin Area. Results to date for 700 wells
show 450 wells with no detectable concentrations (<4 ppb) and over 250
wells with detectable perchlorate above 4 ppb. In addition Olin
Corporation is also sampling over 300 domestic wells. Bottled water is
being delivered to over 1,865 families and businesses in the area. The
District is currently funding bottled water at 1,100 locations while
Olin Corporation is providing bottled water to an estimated 765
locations.
The full extent of perchlorate contamination is not expected to be
known until the end of 2003 at which time an interim cleanup plans may
have been developed. There are currently no firm estimates to how long
it will take to develop a long-term solution for cleanup of
groundwater.
Fiscal Year 2004 Funding Recommendation.--It is requested that the
Congressional Committee support an appropriation add-on of $1 million,
to determine the best long-term solution and to initiate clean up
efforts.
______
PREPARED STATEMENT OF THE METROPOLITAN WATER RECLAMATION DISTRICT OF
GREATER CHICAGO
TUNNEL AND RESERVOIR PROJECT
I am Terrence J. O'Brien, President of the Metropolitan Water
Reclamation District of Greater Chicago, and on behalf of the Water
Reclamation District, I want to thank the Subcommittee for this
opportunity to present our priority for fiscal year 2004, and express
our appreciation for your support of our requests over the years. The
Metropolitan Water Reclamation District (District) is the sponsor for
the federally approved combined sewer overflow (CSO) project, the
Tunnel and Reservoir Plan (TARP), in Chicago, Illinois. Specifically,
we are asking that $5 million be included to continue construction of
this project in the Subcommittee's VA, HUD and Independent Agencies
Appropriations Bill for fiscal year 2004. The following outlines the
project and the need for the requested funding.
INTRODUCTION
The District was established in 1889 and has the responsibility for
sewage treatment, and is also the lead agency in providing sponsorship
for flood control and stormwater management in Cook County, Illinois.
In fact, the District was established in response to an epidemic of
waterborne diseases caused by drinking polluted Lake Michigan water,
which killed 90,000 people in 1885. By 1900, the District had reversed
the flows of the Chicago and Calumet Rivers to carry combined sewage
away from Lake Michigan, the area's main water supply. The District has
been involved with major engineering feats since its inception.
In an effort to meet the water quality goals of the Clean Water
Act, to prevent backflows into Lake Michigan, and to provide an outlet
for floodwaters, the District designed the innovative TARP. The TARP
tunnels, which were judged by the Environmental Protection Agency (EPA)
on two occasions as the most cost-effective plan available to meet the
enforceable provisions of the Clean Water Act, are a combined sewer
overflow elimination system. The TARP reservoirs, also under
construction, will provide flood control relief to hundreds of
thousands of residents and businesses in the Chicagoland area.
TUNNEL AND RESERVOIR PLAN
The TARP is an intricate system of drop shafts, tunnels and pumping
stations which will capture combined sewer overflows from a service
area of 375 square miles. Chicago will remove three times the amount of
CSO pollution as Boston's projected removal--for approximately the same
cost. The remaining Calumet tunnel system will provide 4.1 million
pounds of biological oxygen demand (BOD) removal versus Boston's one
million pounds of BOD removal per year. In fact, Chicago's CSO
pollution problems are worse than the combination of Boston, New York,
and San Francisco's pollution problems. The Chicago Metropolitan Area's
annual BOD loading from CSO pollution is 43 million pounds per year.
This contrasts with the combination of Boston, New York and San
Francisco's combined annual BOD loading of 35 million pounds.
A good portion of the remainder of the TARP system is to be built
in the southeast side of Chicago and the southern suburbs (Calumet
system), a low-income, highly neglected and highly polluted area. This
community suffers from tremendous land, air and water pollution--
literally a dumping ground for multi-media pollution ranging from
chemical waste to serious water pollution.
Due to the enormous risk to the community, the District as the
local sponsor cannot afford to leave the citizens vulnerable.
Therefore, it is imperative that this work must continue. Because we
have awarded construction contracts in the area, the climate is
favorable for continuing with this work at this time, producing
significant cost savings. What we are seeking, then, is funding to
advance federal work.
We have a proven and cost-effective program. In fact, we have
estimated that TARP's cost is about a quarter of the cost of separating
the area's existing combined sewer systems into separate sewage and
stormwater systems. Upon reanalysis, the EPA has consistently found the
TARP program to be the most cost-effective solution that will reduce
the impacts by the greatest degree to meet the enforceable requirements
of the Clean Water Act, with the least amount of dollars. The project,
while relating most specifically to the 52 tributary municipalities in
northeastern Illinois, is also beneficial to our downstream communities
such as Joliet and Peoria. These benefits occur because of the capture
of wastewater in the tunnels during the storm periods and by treatment
of the discharge before being released into the waterways.
Since its inception, TARP has not only abated flooding and
pollution in the Chicagoland area, but has helped to preserve the
integrity of Lake Michigan. In the years prior to TARP, a major storm
in the area would cause local sewers and interceptors to surcharge
resulting in CSO spills into the Chicagoland waterways and during major
storms into Lake Michigan, the source of drinking water for the region.
Since these waterways have a limited capacity, major storms have caused
them to reach dangerously high levels resulting in massive sewer
backups into basements and causing multi-million dollar damage to
property.
Since implementation of TARP, 734 billion gallons of CSOs have been
captured by TARP, that otherwise would have reached waterways. Area
waterways are once again abundant with many species of aquatic life and
the riverfront has been reclaimed as a natural resource for recreation
and development. Closure of Lake Michigan beaches due to pollution has
become a rarity. After the completion of both phases of TARP, 99
percent of the CSO pollution will be eliminated. The elimination of
CSOs will reduce the quantity of discretionary dilution water needed
for flushing of Chicago's waterway system, making it available as
drinking water to communities in Cook, DuPage, Lake, and Will counties,
which have been on a waiting list. Specifically, since 1977, these
counties received an additional 162 million gallons of Lake Michigan
water per day, partially as a result of the reduction in the District's
discretionary diversion in 1980. Additional allotments of Lake Michigan
water will be made to these communities, as more water becomes
available from sources like discretionary diversion.
With new allocations of lake water, more than 20 communities that
previously did not get to share lake water are in the process of
building, or have already built, water mains to accommodate their new
source of drinking water. The new source of drinking water will be a
substitute for the poorer quality well water previously used by these
communities. Partly due to TARP, it is estimated by IDOT that between
1981 and 2020, 283 million gallons per day of Lake Michigan water would
be added to domestic consumption. This translates into approximately 2
million additional people that would be able to enjoy Lake Michigan
water. This new source of water supply will not only benefit its
immediate receivers but will also result in an economic stimulus to the
entire Chicagoland area, by providing a reliable source of good quality
water supply.
TARP was designed to give the Chicago metropolitan area the optimal
environmental protection that could possibly be provided. More
importantly, no other project was found to be as cost-effective. In
addition, the beneficial use of the project is being enhanced by the
addition of the flood control reservoirs now being designed and
constructed by the Corps of Engineers, which will be connected to the
tunnels for additional capture and storage of combined sewage during
flood events. We believe TARP stands as a tribute to our nation's Clean
Water goals and one that is being accomplished within the most
economical constraints.
REQUESTED ACTION
The $5 million we are seeking in fiscal year 2004 funding in the
Subcommittee's bill will help keep the local sponsor whole for the
advance construction it plans to accomplish on the Little Calumet Leg
for the Calumet System of the congressionally-authorized TARP project.
While the TARP project was originally authorized at 75 percent federal
funding, the District as local sponsor has been contributing at least
50 percent of the total project cost. We greatly appreciate the
Subcommittee's endorsement of our request over the years to advance the
construction of this work. This fiscal year 2004 work will go a long
way to address serious water quality, stormwater and safety problems.
It will have a tremendously beneficial impact on a community which
suffers from water pollution and significant flooding problems. The EPA
has approved the facilities plan for the overall TARP project and
design has been completed. The EPA has identified this particular
segment of work as the next critical section of the plan to be
constructed based on significant water quality benefits.
Once on-line, the Little Calumet Leg of the Calumet System will
capture 1.5 billion gallons of CSOs per year and will protect 14.9
square miles of the City of Chicago from raw sewage backup and
flooding.
We urgently request that this funding be included in the
Subcommittee's bill for the construction of the Calumet System of the
TARP project. We thank you in advance for your consideration of our
request.
______
PREPARED STATEMENT OF THE CALAVERAS COUNTY WATER DISTRICT
Calaveras County is located on the eastside of the Central Valley
of California and encompasses approximately 1,028 square miles of land,
stretching across more than 50 miles of valleys, foothills, and
mountain peaks. The topography ranges from approximately 200 feet above
mean sea level (ft-msl) in the northwestern region of the County, to a
peak height of 8,170 ft-msl near Alpine County.
The communities of West Point, Wilseyville and Bummerville are
located in the northeastern portion of the county in the sparsely
populated higher foothills. The topography ranges from approximately
2,500 feet in Wilseyville to 3,200 feet in Bummerville. Mild summers
and cold winters characterize the region, with temperatures ranging
from the low 20's to the middle 80's. Snow accounts for a large
percentage of the precipitation in the watersheds supplying the study
area.
In the fall of 1946, the Calaveras County Water District (CCWD) was
organized under the laws of the State of California as a public agency
for the purpose of developing and administering the water resources in
Calaveras County. Therefore, CCWD is a political subdivision of the
State of California and is governed by the California Constitution and
the California Government and Water Codes. CCWD is not a part of or
under the control of the County of Calaveras. CCWD was formed to
preserve and develop water resources and to provide water and sewer
service to the citizens of Calaveras County.
Under state law, CCWD, through its Board of Directors, has general
powers over the use of water within its boundaries. These powers
include but are not limited to: the right of eminent domain, authority
to acquire, control, distribute, store, spread, sink, treat, purify,
reclaim, process and salvage any water for beneficial use, to provide
sewer service, to sell treated or untreated water, to acquire or
construct hydroelectric facilities and sell the power and energy
produced to public agencies or public utilities engaged in the
distribution of power, to contract with the United States, other
political subdivisions, public utilities, or other persons, and subject
to the California State Constitution, levy taxes and improvements.
CCWD provides water service to over 10,000 connections throughout
Calaveras County. CCWD operates five independent treatment facilities
with a combined treatment capacity of over 13 million gallons per day.
The water facilities include approximately 290 total miles of
transmission and distribution pipelines ranging from 4 to 20 inches in
diameter and 31 storage tanks with capacity of over 14.5 million
gallons. CCWD provides water and/or sewer service to 65 percent of the
residents of Calaveras County.
WEST POINT, WILSEYVILLE AND BUMMERVILLE SYSTEM HISTORY
CCVD owns and operates the domestic water system in the rural
communities of West Point, Wilseyville, Bummerville and part of Sandy
Gulch. This water system is located in the District's West Point
Service area, located in the Mokelumne River Watershed, Calaveras
County, Central California, in the foothills of the Sierra Nevada
Mountains. Population growth in the service area has generally averaged
less than one percent annually over the last 15 years. This low growth
rate may be attributed in part to the reduction in industry within the
service area. Presently, the economic base of the community is
principally related to retirement living with some of the population
commuting to larger nearby communities for employment opportunities.
The communities of West Point and Wilseyville developed over the
last 150 years, initially as mining companies and later as logging
communities. Originally, these areas were served water through a series
of mining ditches associated with these activities. The decline of
these industries, which were critical to the area economy, brought
about CCWD's purchase of the water and conveyance systems.
The West Point water system was purchased in 1954 by CCWD from the
West Point Ditch Company. The predecessor to Sierra Pacific Logging
Company owned and built the Wilseyville system and sold it to CCWD in
1964. The Bummerville system was connected to the West Point system in
1959. Between 1964 and 1974 the system was brought into compliance with
state and federal regulations for operation by CCWD.
The existing water system serves 520 connections, a total
population of 1,298, including a local Native American Reservation. The
current facilities include two raw water reservoirs (Wilson Lake and
the Regulating Reservoir); two raw water diversion facilities (Bear
Creek gravity and Middle Fork Mokelumne pumped); one water treatment
plant (West Point); two treated water pump stations (Bummerville and
Upper Wilseyville); and the associated distribution and storage
systems.
The two main sources for water supply for the West Point water
treatment plant are the Bear Creek diversion, which is a gravity
source, and the pumped source from the Mokelumne River. Both raw
sources are generally of good quality and are very easily treated to
potable standards. Water rights for the West Point/Wilseyville water
system are derived from existing water rights agreements for diversion
of flow from Bear Creek and from the Middle Fork of the Mokelumne
River. These agreements provide for adequate water to serve the present
water customers, as well as future full buildout of the adjacent areas.
In the case of drought, the Bear Creek supply can be supplemented with
water from the Middle Fork of the Mokelumne River. In addition, the
District maintains the 50 acre-foot Regulating Reservoir (also referred
to as the West Point Reservoir), which may be called upon to supplement
and augment supply during dry periods.
The West Point/Wilseyville water system and related facilities were
primarily constructed before 1960 and many system components are either
inadequate or in need of replacement. Several changes have been made to
the systems in response to more stringent regulations, which allowed
the abandonment of the Wilseyville plant. In addition, the West Point
water treatment plant and pump stations have been upgraded and an
intertie has been installed between West Point and Wilseyville.
Distribution system deficiencies are evident when evaluated against
current water industry standards for publicly owned and operated
systems. The 1996 Master Plan was completed to address these
deficiencies. Specific recommendations were presented to bring the
system into compliance with current and anticipated water industry
standards. In 1998, a Master Plan Supplement provided additional
analysis for improvements to the West Point Wilseyville, and
Bummerville systems.
West Point, Wilseyville and Bummerville have infrastructure
requirements that far exceed their financial capabilities. However, the
infrastructure is crucial to the health, safety, and existence of these
small, rural communities. In addition, rising water and sewer rates
have been necessary due to new regulatory requirements and these rising
rates have been difficult for the community to face. The closing of
lumber mills in Calaveras and neighboring Amador County (over the last
ten years) has also made a difficult situation worse for those
dependent on that industry for employment, especially in this current
climate of high unemployment rates. In an effort to begin addressing
these needs at the state and local level, a $500,000 feasibility study
state grant and a $1.9 million Bear Creek state construction grant have
recently been provided. In order to build on these state and local
efforts and to meet the critical infrastructure needs and the needs of
the community, we respectfully request assistance for the following
project components:
WATER SUPPLY INFRASTRUCTURE REHABILITATION PROJECT REQUEST
The small rural communities of West Point, Wilseyville, and
Bummerville are faced with unaffordable water system replacement costs
for aging supply and distribution systems. Water pressure and fire flow
are inadequate in much of the service area. The raw water storage and
transmission facilities are in need of immediate repairs.
Seven projects have been identified to provide the West Point water
system with a safer and more reliable level of service. These projects
include:
--West Point Clearwell Replacement.--The upgraded West Point Water
Treatment Plant is operational; however, the current clearwell
will not provide sufficient contact time for compliance with
disinfection regulations. This project will demolish and
replace the old 500,000 gallon tank with a new 600,000 gallon
steel tank.
--Bummerville Treated Water Storage Tank Replacement.--Replacement of
small redwood tanks with a single 150,000 gallon steel tank.
--Wilson Lake Embankment.--Assessment and reconstruction of a primary
storage reservoir that is no longer functional.
--West Point-Wilseyville Distribution System.--Replace the aging
``backbone'' transmission and distribution piping and provide a
second intertie between West Point and Wilseyville service
areas to improve fire flow and system reliability.
--Bummerville Treated Water Distribution System--Replacement of old,
leaking, small-diameter piping to improve flow and fire
protection.
--Mokelumne River Intake and Pump Station.--Relocation of the pump
station out of the flood plain, replacement of the raw water
line to the treatment plant, and modification of the existing
river diversion structure.
--Regulating Reservoir.--Remediation projects to improve water
quality problems at a primary storage reservoir.
This funding we are requesting here is necessary to assist in the
upgrade, reconstruction, and repair of water system infrastructure
critical for basic water pressure and fire flow. The District,
therefore, respectfully requests the Committee's support for a
$2,500,000 appropriation in fiscal year 2004 under the Environmental
Protection Agency's State and Tribal Grant Assistance Program, so that
efforts to initiate construction in the much-needed West Point Drinking
Water System can proceed.
______
PREPARED STATEMENT OF THE WASHINGTON SUBURBAN SANITARY COMMISSION
The Washington Suburban Sanitary Commission (Commission or WSSC),
established in 1918, is a public, bi-county agency providing water and
wastewater services to Montgomery and Prince George's Counties in the
Washington Capital region. WSSC is governed by six Commissioners with
equal representation from each county and has developed its systems to
the point where it is a national leader in the water and sewerage
industry. The Commission is the among the ten largest water and
wastewater utilities in the country, serving approximately 1.6 million
people in a 1,000 square mile service area. In addition, the Commission
provides services to 26 key federal installations and facilities in the
Washington area, including such important military facilities as
Andrews Air Force Base; the National Imagery and Mapping Agency; the
National Naval Medical Center; the Naval Surface Warfare Center; the
U.S. Army Research Center. Numerous other state and local security-
related installations and offices also receive service from the
Commission.
Water treatment and distribution facilities operated by the
Commission include three water supply reservoirs; two water filtration
plants; fourteen water pumping stations; 5,100 miles of water mains;
and 54 treated-water storage facilities. Water production at Commission
facilities is 166 million gallons per day. In terms of wastewater
facilities, the Commission operates six wastewater treatment plants; 41
wastewater pumping stations; and approximately 4,900 miles of sewer
mains.
WASTEWATER DISINFECTION SYSTEM UPGRADE
Since September 11, 2001, the Commission has worked with security
consultants to aggressively assess the vulnerability of our key
facilities to terrorist attack. As a result of that effort, the
Commission has identified and implemented numerous enhancements to our
security programs to prevent and/or provide early detection of
physical, chemical or biological attack on our systems. Aspects of
these improvements range from monitoring programs to detect chemical or
biological irregularities to the physical ``hardening'' of several of
our key facilities.
These vulnerability assessments revealed a particular concern
regarding the storage and use of gaseous chlorine at WSSC wastewater
treatment facilities. The high risk from using and storing chlorine can
be eliminated by switching to a system using ultraviolet disinfection
methods. In addition to eliminating the need to use and store a
hazardous chemical, switching to ultraviolet disinfection also has
other environmental benefits because it does not form other potentially
harmful byproducts in effluent.
Due to the immediate and critical importance of reducing this high
risk factor, WSSC has budgeted funds in its fiscal year 2004 budget to
begin this switchover. In order to implement the switch from chlorine
disinfection to UV disinfection, $2 million in federal EPA STAG funds
is needed immediately so that this critical regional safety issue can
be accomplished as quickly as possible. Three wastewater treatment
plants: the Western Branch; Seneca; and Piscataway must all be switched
over to UV disinfection systems. The total cost for this switchover is
$13.5 million. WSSC is working closely with the Montgomery and Prince
George's County governments and the Maryland Department of the
Environment in order to carry out these projects.
PATUXENT WATER TREATMENT PLANT EXPANSION
The vulnerability assessments also indicated that the Potomac River
watershed, due to its size, could be vulnerable to tampering and
contamination. Thus, additional water supply capacity for the region is
needed in the event that the Potomac River cannot be used as a source
of water. Thus in order to ensure adequate water supply to the region,
other sources of water must be secured or expanded. WSSC believes that
the Patuxent River can be used in emergency situations to help supply
water to the region.
The Patuxent River Water Treatment Plant is unique from several
perspectives. The Plant's watershed is rather small and is easier to
protect than the Potomac River watershed. Its raw water is also of
better general quality than the Potomac River. Finally, it is located
at a higher elevation than the Potomac and needs far less energy to
provide water to WSSC. As such, this plant is easily and cost-
effectively amenable to reliability enhancements for both quantity and
quality aspects. The Commission seeks to increase the capacity of the
Patuxent River plant to nominal 72 million gallons per day (MGD)/120
MGD emergency capacity. This additional capacity will allow WSSC to
continue services during any emergency that might adversely affect the
operation of the Potomac Plant.
This project was previously identified and has been broken into two
phases. Phase I will rehabilitate this plant to provide 40 MGD of
capacity. Phase I will be completed shortly and is being implemented
with local resources. Phase II would see the plant expanded to 72 MGD.
Specifically, the updgrade and expansion will consist of the addition
of a sixth treatment train (flocculators, sedimentation basins,
disinfectant contact chamber, and filters); a new fourth raw water main
from the T. Howard Duckett Dam and Rocky Gorge Pumping Station to the
Plant; and the modification and expansion of the Rocky Gorge Raw Water
Pumping Station.
The estimated cost of Phase II of this regional security measure is
$33 million, and WSSC requests $2 million in fiscal year 2004 to begin
implementing these needed improvements. In order to carry out this
project, WSSC is working closely with the Montgomery County government;
the Prince George's County government; the Maryland National Capital
Park and Planning Commission, the Maryland Department of the
Environment, and the Interstate Commission on the Potomac River Basin.
______
PREPARED STATEMENT OF THE AMERICAN ASTRONOMICAL SOCIETY
The astronomical research enterprise in the United States is
supported in large part by the National Science Foundation (NSF) and
the National Aeronautics and Space Administration (NASA). Federal
support of astronomy research has been the foundation of our success in
the last five decades, enabling fundamental discoveries about the
nature of universe and its history, including the existence of dark
matter and dark energy, and the discoveries of planets around other
stars. The U.S. research community leads the world in astronomical
discovery, and federal support of basic research is key to maintaining
the preeminent role of American astronomical research.
Beyond the excitement of new discoveries in astronomy, basic
research in the physical sciences in the United States contributes to
the national economy and helps to maintain our robust economic
competitiveness in the world market. Astronomy attracts students to
careers science and engineering and motivates students to achieve a
high level of competence in technical fields. Federal funding for
missions and telescopes provides the infrastructure for astronomical
research. The importance of federal funding extends beyond support for
missions and facilities, however; it is federal support for research
that allows us to produce our basic and most important products: new
discoveries and scientifically literate and trained personnel.
Each decade, the astronomical community reaches consensus on the
most important large, medium, and small research projects for the next
ten years, ranked in a priority manner based on their scientific
benefit. This consensus, called the Decadal Survey of Astronomy and
Astrophysics, is created under the auspices of the National Research
Council as a National Academy Report. The most recent report,
``Astronomy and Astrophysics in the New Millennium'' represents the
fifth such decadal survey. During the subsequent decade, the NRC
Committee on Astronomy and Astrophysics reviews the progress of the
ranked projects and suggests any necessary augmentations or changes.
Decadal Surveys are now also available for two related fields,
Planetary Science and Solar Physics.
The value of the Decadal Surveys to policy makers is quite clear.
Usually, the projects listed require federal support. With a list of
projects, prioritized by the scientific community itself, appropriators
may confidently allocate funds, knowing that they are supporting the
best possible science.
The American Astronomical Society, which represents nearly 6,500
professional astronomers, almost all of whom live and work in the
United States, has endorsed these reports and I have included the text
of those endorsements below. The complete reports are available in
print and online (for free) from the National Academy Press
(www.nap.edu).
The Society thanks the members of the Senate VA-HUD-IA
appropriations subcommittee for their support of basic science and
urges the subcommittee to utilize the Decadal Survey Reports for
Astronomy and Astrophysics, for Planetary Science, and for Solar
Physics in making funding decisions this year and throughout the
decade.
ENDORSEMENT OF THE DECADAL ASTRONOMY AND ASTROPHYSICS REPORT
Adopted 7 January 2001, San Diego, CA
Astronomy and Astrophysics in the New Millennium
A report of the Astronomy and Astrophysics Survey Committee, Board
on Physics and Astronomy, Space Studies Board, Commission on Physical
Sciences, Mathematics and Applications, and National Research Council
``Whereas, the National Research Council has recently completed and
published the report Astronomy and Astrophysics in the New Millennium
and,
Whereas, the report represents a consensus of the astronomy and
astrophysics community as to the priorities for federal investment in
astronomy and astrophysics research for the coming decade and,
Whereas, the process by which the report was produced was carried
out in a fully open manner and included many opportunities for input
from the astronomy and astrophysics community as well as open public
sessions in several locations and at meetings of the American
Astronomical Society and,
Whereas, the report will be presented to Congress as an important
and useful document for establishing federal investment in astronomical
and astrophysical research in the coming decade,
The American Astronomical Society hereby endorses the report as
presenting a valid and balanced set of priorities for the coming decade
for investment in astronomy and astrophysical research.
Further, the American Astronomical Society encourages its members,
other astronomy, astrophysics and related researchers, astronomy and
astrophysics enthusiasts, the public and especially members of Congress
and the Administration to fully embrace the report and use it when
making policy decisions regarding federal investment in astronomical
and astrophysical research during the coming decade.''
ENDORSEMENT OF THE NRC REPORT ``NEW FRONTIERS IN THE SOLAR SYSTEM: AN
INTEGRATED EXPLORATION STRATEGY''
Adopted 30 September 2002
The American Astronomical Society hereby endorses the National
Research Council Report ``New Frontiers in the Solar System: An
Integrated Exploration Strategy'' as a balanced set of priorities for
Federal expenditure in solar system studies for the coming decade.
This report was completed by the National Research Council after
substantial input from the planetary sciences community with the
support of the Division for Planetary Sciences of the American
Astronomical Society. The report represents a community consensus as to
the priorities for federal investment in solar system exploration for
the period 2003-2013.
The key overall recommendations include maintenance of NASA's
Discovery program of low-cost missions, a Kuiper-Belt/Pluto medium
class mission and the large-cost category Europa Geophysical Explorer.
There are also a separate set of prioritized recommendations for the
Mars Exploration Program.
The survey endorses several ground-based facilities recommended by
the recent Astronomy and Astrophysics decadal survey, including the
Giant Segmented Mirror Telescope and the Large-Aperture Synoptic Survey
Telescope with operating modes supportive of solar system studies. It
also points out the important role planetary astronomy plays in support
of NASA missions.
The AAS encourages its members, other astronomy, astrophysics and
related researchers, astronomy and astrophysics enthusiasts, the public
and especially members of Congress and the Administration to fully
embrace the report and use it when making policy decisions regarding
federal investment in solar system exploration during the coming
decade.
______
PREPARED STATEMENT OF THE AMERICAN INDIAN HIGHER EDUCATION CONSORTIUM
This statement focuses on three areas: Department of Housing and
Urban Development, National Science Foundation, and National
Aeronautics and Space Administration.
Mr. Chairman and Members of the Subcommittee, on behalf of this
nation's 34 American Indian Tribal Colleges and Universities (TCUs),
which comprise the American Indian Higher Education Consortium (AIHEC),
thank you for the opportunity to express our views and requests for
fiscal year 2004.
SUMMARY OF REQUESTS
Department of Housing and Urban Development (HUD)
Since fiscal year 2001, a modest TCU initiative has been funded
within the Community Development Block Grant program. This competitive
program supports efforts by the TCUs to assist their communities by
addressing dire community-based facilities and infrastructure needs. We
strongly urge the Subcommittee to support this program at a minimum $5
million, an increase of $2 million over the President's fiscal year
2004 budget request.
National Science Foundation (NSF) Programs
Tribal Colleges and Universities Program (TCUP).--Over the past few
years, this program has provided important assistance to TCUs as they
build their capacity to provide strong science, technology,
engineering, and mathematics (STEM) teaching and learning programs for
American Indians. In three years, 19 of the 32 eligible TCUs have begun
participating in the program, along with seven Alaska Native and Native
Hawaiian serving institutions. We request that Congress expand this
vital program to $15 million, $5 million above the President's budget
request, to help support funding of Alaska Native and Native Hawaiian
serving institutions, which NSF includes in the TCU program and funds
to a significant extent.
Tribal College Linkages with K-12 Schools
Rural Systemic Initiative (TC-RSI) and the Math Science Partnership
Program (MSP).--In the mid-1990s, NSF established a program to assist
TCUs and other rural higher education institutions in promoting
systemic change in STEM education in rural K-12 schools. This program
has proven to be remarkably successful, yet NSF plans to terminate the
program as current grants expire. In fiscal year 2002, the President
established a similar, but significantly expanded new program, the Math
Science Partnership program. In the first year, none of the 24 programs
funded included minority serving institutions (MSIs) or specifically
targeted American Indian children. We strongly urge the Subcommittee to
support the ESR division budget and to establish American Indian and
Rural Schools programs within the MSP program or to include report
language reaffirming Congressional support for the TC-RSI program
beyond the current grant period.
Advanced Networking with Minority Serving Institutions.--In fiscal
year 1999, NSF funded a project to help MSIs develop the campus
infrastructure and national connections necessary to participate in the
Internet-based Information Age. The project involves a historic and
successful collaboration between three minority communities and
mainstream institutions, which had little or no prior experience
working together. AN-MSI has developed a successful model for providing
support and technical assistance and is working with tribal colleges on
collaborative education and research projects. AN-MSI's funding expires
at the end of fiscal year 2003, and if new funding is not secured, the
project's work will cease. We request that the Subcommittee include
funding within NSF's CISE directorate to continue and expand the AN-MSI
program at $3 million in fiscal year 2004.
National Aeronautics and Space Administration (NASA)
In fiscal year 2001, the tribal colleges established a formal
cooperative agreement with NASA for a project designed to increase
access, participation, and success of American Indians in high quality
K-16 mathematics, science, engineering, and technology programs. The
agreement includes a TCU liaison between AIHEC and NASA to oversee
implementation of the project and provides modest program enrichment
grants to the colleges. However, as NASA implements a major
reorganization of its education programs, it is unclear whether and how
it will support partnerships with the tribal colleges and universities.
We urge Congress to include report language to encourage NASA to extend
its successful cooperative agreement on behalf of TCUs; ensure that the
modest existing initiatives for TCUs are not eliminated in the
reorganization of NASA's education programs; and encourage NASA faculty
exchange programs and IPA contracts with TCUs to provide needed on-site
expertise and partnerships. Additionally, we ask for report language to
encourage the development of new initiatives to address the technology
infrastructure needs at the TCUs.
BACKGROUND
As a group, Tribal Colleges and Universities are this nation's
youngest institutions of higher education. The first tribal college--
Navajo Community College (now Dine College) in Tsaile, Arizona--was
established in 1968. Over the next few years, a succession of tribal
colleges followed, primarily in the Northern Plains. In 1972, the first
six tribally controlled colleges established AIHEC to provide a support
network for member institutions. Today, AIHEC represents 34 TCUs
located in 12 states. Collectively, these institutions serve 30,000
full- and part-time American Indian students from more than 250
federally recognized tribes. Yet in comparison with other institutions,
TCUs benefit from only a handful of dedicated programs and receive only
a very small portion of overall Federal higher education funding.
The vast majority of TCUs is accredited by independent, regional
accreditation agencies and like all institutions of higher education,
must undergo stringent performance reviews on a periodic basis. In
addition to associate, bachelor, and master's degree programs, TCUs
provide much needed high school completion (GED), basic remediation,
job training, adult education, and vitally needed community-based
continuing education programs. Tribal colleges function as community
centers; libraries; tribal archives; career and business centers;
economic development centers; public meeting places; and child care
centers. Each TCU is committed to improving the lives of students
through higher education and to moving American Indians toward self-
sufficiency.
TCUs provide access to higher education for American Indians and
others living in some of this nation's most rural and economically
depressed areas. These institutions, chartered by their respective
tribal governments, combine traditional teachings with conventional
postsecondary courses and curricula. They have developed innovative
means to address the needs of tribal populations and are successful in
overcoming long-standing barriers to higher education for American
Indians. Over the past three decades, these vital institutions have
come to represent the most significant development in the history of
American Indian education, providing access to under-represented
students and promoting achievement among students who may otherwise
never have known postsecondary education success.
Despite their remarkable accomplishments, TCUs are the most poorly
funded institutions of higher education in the country. Chronically
inadequate operations funding remains the most significant barrier to
their success. Funding for basic institutional operations of 24
reservation-based TCUs is provided through Title I of the Tribally
Controlled College or University Assistance Act (Public Law 95-471).
Funding under the Act was first appropriated in 1981 and is still, over
20 years later, less than two-thirds of its authorized level of $6,000
per full-time Indian student (ISC). Despite a nearly $2 million
increase in basic operations funding in fiscal year 2003, Title I
colleges are receiving $3,908 per full-time equivalent Indian student,
an $8 decrease per ISC from the fiscal year 2002 funding level, due to
enrollment increases and an unclear method for allocating operations
funding. While mainstream institutions have a foundation of stable
state tax support, TCUs must rely on annual appropriations from the
Federal government for their basic institutional operating funds.
Because TCUs are located on Federal trust territories, states have no
obligation to fund them even for the non-Indian state-resident students
who account for approximately 20 percent of TCU enrollments. Yet, if
these same students attended any other public institution in the state,
the state would provide basic operating funds to the institution.
As a result of more than 200 years of Federal Indian policy--
including policies of termination, assimilation and relocation--many
reservation residents live in abject poverty comparable to that found
in Third World nations. Through the efforts of TCUs, American Indian
communities receive services they need to reestablish themselves as
responsible, productive, and self-reliant.
JUSTIFICATIONS
Department of Housing and Urban Development
We are pleased that the President's fiscal year 2004 budget request
includes $3 million for HUD-TCU program funded under the Community
Development Block Grant program. This competitive grants program
enables tribal colleges to expand their roles and effectiveness in
addressing development and revitalization needs in their respective
communities. No academic or student support programs are funded through
this program; rather, funding is available only for community-based
outreach and service programs at TCUs. Over the past few years, a
handful of tribal colleges have been able to build or enhance child
care centers, social service offices; help rehabilitate tribal housing;
establish and expand small business development; and enhance vitally-
needed library services.
The number of TCUs is continuing to grow. Two additional colleges
have joined our ranks, Saginaw Chippewa Tribal College, in Mt.
Pleasant, Michigan and Tohono O'odham Community College in Sells,
Arizona. We strongly urge Congress to continue to fund this program at
a minimum of $3 million, included in the President's budget request, to
help ensure that much needed community services and programs are
expanded and continued.
National Science Foundation Programs
Tribal Colleges and Universities Technology Initiative.--In fiscal
year 2001, NSF launched a new TCU initiative designed to enhance the
quality of science, technology, engineering and mathematics (STEM)
instruction and outreach programs, with an emphasis on the leveraged
use of information technologies at TCUs. The program enables colleges
to implement comprehensive institutional approaches to strengthen
teaching and learning in ways that improve access, retention, and
completion of STEM programs, particularly those that have a strong
technological foundation. Through this program, colleges gain support
their efforts to bridge the ``digital divide'' and prepare students for
careers in information technology, science, mathematics, and
engineering fields. The overall goals of the program are to improve
access, retention, and graduation rates among American Indian students
and to increase the number of American Indians in the information
technology, science, mathematics and engineering workforce. In three
years, 19 of the 32 eligible TCUs are participating in the program,
along with seven Alaska Native and Native Hawaiian serving
institutions. We request that Congress expand this vital program to $15
million, $5 million above the President's budget request. This level
more accurately reflects the true needs of the eligible pool, which NSF
significantly expanded when it included Alaska Native and Native
Hawaiian serving institutions, in the TCU program.
Tribal College Linkages with K-12 Schools: Rural Systemic
Initiative (TC-RSI) and the Math Science Partnership Program (MSP).--In
the mid-1990s, NSF established a program to assist tribal colleges and
other rural institutions of higher education in promoting systemic,
standards-based change in STEM education in rural K-12 schools. Since
1995, this program has proven to be remarkably successful in terms of
standards-based testing, professional development of teachers, and
enhanced learning strategies. Fourteen TCUs currently participate in
the program. Despite its success, NSF has decided to terminate the
program as current grants expire.
In fiscal year 2002, the President established a similar, but
significantly expanded new program, the Math Science Partnership
program (MSP). MSP seeks to strengthen K-12 science and mathematics
education through partnerships involving K-12 schools, institutions of
higher education and community stakeholders. In the first year, NSF
funded 24 programs. None included minority serving institutions or
specifically targeted American Indian children. We strongly urge the
Subcommittee to support the ESR division budget and to establish
American Indian and Rural Schools programs within the Math Science
Partnership program or to include report language reaffirming
Congressional support for the TC-RSI program beyond the current grant
period.
Advanced Networking with Minority Serving Institutions (AN-MSI).--
Four years ago, NSF funded a project within its Computer and
Information Science and Engineering (CISE) Directorate to help
minority-serving institutions (MSIs) develop the campus infrastructure
and national connections necessary to participate in the emerging
Internet-based Information Age. The project involves an historic and
successful collaboration between three minority communities and
mainstream institutions, which had little or no prior experience
working together. AN-MSI has developed a successful model for providing
TCUs and other MSIs with technical assistance, education, and training
programs to improve campus-based information and communications systems
and strengthen IT staff. While much has been accomplished, TCUs are at
the beginning stages of technology use, particularly for collaborative
education and research. AN-MSI's funding expires at the end of fiscal
year 2003, and if new funding is not secured, the project's work will
cease. We request that the Subcommittee include funding within NSF's
CISE Directorate to continue and expand the AN-MSI program at $3
million in fiscal year 2004.
National Aeronautics and Space Administration (NASA)
In fiscal year 2001, TCUs established a formal cooperative
agreement with NASA for a project designed to increase access,
participation, and success of American Indians in high quality K-16
mathematics, science, engineering, and technology programs. The
agreement includes a TCU liaison between AIHEC and NASA to oversee
implementation of the project and provides modest program enrichment
grants to the colleges. However, as NASA implements a major
reorganization of its education programs, it is unclear whether and how
it will support partnerships with tribal colleges. We urge Congress to
include report language to encourage NASA to extend its successful
cooperative agreement on behalf of TCUs; ensure that the modest
existing initiatives for TCUs are not eliminated in the reorganization
of NASA's education programs; and encourage NASA faculty exchange
programs and IPA contracts with TCUs to provide needed on-site
expertise and partnerships. Additionally, we ask for report language to
encourage the development of new initiatives to address the technology
infrastructure needs at TCUs.
CONCLUSION
In light of the justifications presented in this statement and the
overwhelming evidence of inequitable access to technology in rural
America, we respectfully request Congress increase funding for Tribal
College and University programs to help bring economic self-sufficiency
to Indian Country. Fulfillment of AIHEC's fiscal year 2004 request will
strengthen the missions of TCUs and the enormous, positive impact they
have on their respective communities. Your support will help ensure
that they are able to educate and prepare thousands of American Indians
for the workforce of the 21st Century. TCUs have proven to be very
responsible with the Federal support they have received over the past
three decades. It is important that the Federal government now
capitalize on its investment. We respectfully request your continued
support of tribal colleges and full consideration of our fiscal year
2004 appropriations requests.
______
PREPARED STATEMENT OF THE AMERICAN SOCIETY FOR MICROBIOLOGY
The American Society for Microbiology (ASM), the largest single
life science organization in the world, comprising more than 40,000
members, appreciates the opportunity to provide written testimony on
the fiscal year fiscal year 2004 appropriation for the National Science
Foundation (NSF).
The ASM represents scientists who work in academic, industrial,
medical and governmental institutions worldwide. Microbiologists are
involved in research to improve human health and the environment. The
ASM's mission is to enhance the science of microbiology, to gain a
better understanding of basic life processes, and to promote the
application of this knowledge for improved health, and for economic and
environmental well being.
The following testimony will outline the ASM's funding
recommendations for the NSF for fiscal year 2004.
NATIONAL SCIENCE FOUNDATION
The ASM endorses the level of funding approved by Congress in the
NSF Authorization Act of 2002 (Public Law 107-368) to provide $6.39
billion, a 20 percent increase, for the NSF in fiscal year 2004. This
would raise the NSF budget by $1.1 billion from its current $5.3
billion level of funding for fiscal year 2003. The ASM strongly
supports Congress's bipartisan commitment to strengthen scientific
research and education. The NSF budget is one of the nation's most
important investment opportunities because it funds research in new
frontiers of scientific inquiry and contributes to creating a highly
skilled, competitive workforce in science and engineering. Although NSF
accounts for only 4 percent of federal R&D spending, it supports nearly
50 percent of the non-medical basic research at our colleges and
universities. A 20 percent increase will fund additional excellent
rated research projects in pursuit of important discoveries and
innovations. In addition, increasing NSF's budget beyond the
Administration's proposed $5.5 billion budget will allow the NSF to
continue making increases in the size and duration of NSF grants,
graduate student stipends and investments in priority areas, such as
Biocomplexity in the Environment and Nanoscale Science and Engineering.
Increases in these areas will ensure high productivity among
researchers and will improve the attractiveness and viability of the
science and engineering fields to future students. Achieving these
goals requires public investment that reflects the importance of
science and engineering to the social and economic foundation of the
nation.
The NSF's mission is to promote and advance scientific,
mathematical, and engineering research and education in the United
States. It is a key agency for supporting research that uses genomic
information in new and creative ways through interagency partnerships
that advance all the sciences. The NSF has launched several grants that
seek to bring multidisciplinary approaches to ecology, human health,
and genomic sequencing. These efforts are supported by promising
partnerships with the National Institutes of Health (NIH), the U.S.
Department of Agriculture (USDA), the U.S. Geological Survey (USGS),
and the Department of Energy (DOE). Other NSF initiatives will result
in increased understanding of environmental and human microbial
interactions, which have particular relevance to global environmental
change as well as infectious diseases and represent a new frontier in
scientific research.
Continued research concerned with the impact of microorganisms on
the well being of humans, animals, plants and the environment is
critical. The ASM supports NSF's continued focus on microbial biology
and the diversity of microorganisms. Microorganisms play key roles in
processing our wastes, recycling the nutrients that support our
agriculture, forests and fisheries, yield new pharmaceuticals, provide
key tools for biotechnology, affect the quality of our food and water,
control some pests, and cause disease. The NSF recognizes the important
role microorganisms play in our well-being and funds programs that
advance our understanding of the microbial world. This effort has led
to new programs such as the Microbial Observatories program, which
focuses on the discovery of important but uncultured microorganisms. It
also provided the foundation for NSF's participation in the interagency
effort, ``The Microbe Project.''
BIOCOMPLEXITY IN THE ENVIRONMENT
The ASM supports the proposed $100 million budget for fiscal year
2004 for Biocomplexity in the Environment (BE) research. BE is an
integrative program that utilizes all of the NSF science directorates
to address some of the worlds most pressing scientific and societal
challenges, such as, climate change and the complicated question of
long-term environmental security. This intradirectorate initiative
seeks to better understand the complexity of interactions between
local, regional and global ecosystems that is inextricably linked to
human well being. Advances in molecular biology, ecology, the
geosciences, mathematics and the computational sciences have made it
feasible to begin to understand these complex interactions.
Microorganisms are key components of the soil, water, plant, and animal
environments and therefore are dominant factors in understanding these
interactions. Furthermore, only a small percentage of the microbial
species on earth are known, leaving their functional role unknown.
These unknown organisms are the largest untapped source of biodiversity
and a potential source of new pharmaceuticals, enzymes, biocontrol
agents, and tools for nanotechnologies.
The ASM also endorses the program's emphasis on microbial genomic
sequencing as a major new tool in furthering our understanding of the
microbial world. In 2004, BE will focus on a number of priorities that
will enhance our fundamental understanding of microorganisms important
in nature and to humans (e.g., Microbial Genome Sequencing (MGS)
activity). The MGS activity will focus on microorganisms chosen for
their fundamental biological interest through the peer-reviewed process
and for their importance in agriculture and forestry, relevance to the
safety and quality of the food and water supply, and as potential
bioterrorism agents. The ASM is also pleased with the Tree of Life
Project. The NSF expects this program to capitalize on new and powerful
computational and genomic technologies, which biologists' will then use
to construct a universal genealogy for all 1.7 million named species of
living organisms on Earth. Genome sequencing will provide the basis of
efforts to better manage these organisms. The ASM is equally pleased to
see joint efforts with NIH, USDA, NSF, USGS, USDA, and the National
Aeronautics and Space Administration (NASA) continue in the Ecology of
Infectious Disease activity. Research will focus on ecological
determinants of disease transmission, possible health effects from
environmental change, and improved tracking of outbreaks, which should
be useful in following the West Nile virus. BE's research (Coupled
Biogeochemical Cycles activity) in the biological, geochemical,
geological, and physical processes is promoting new multidisciplinary
approaches to traditional biological and geochemical science and should
be continued.
ASM applauds NSF's continued leadership in expanding
multidisciplinary research opportunities and urges Congress to fully
support BE.
NANOSCALE SCIENCE AND ENGINEERING
The NSF is the lead agency in the National Nanotechnology
Initiative, which allows scientific disciplines an opportunity to focus
information technology, biology, engineering, physics, chemistry, and
material and computer sciences into a unified research effort to make
discoveries in materials and manufacturing, medicine, environment and
energy and national security. The ASM supports the Administration's
proposed level of funding of $249 billion for this program. The
Biological Directorate's (BIO) portion of the fiscal year 2004
initiative is $5 million, which represents a $2 million increase from
fiscal year 2003.
The ASM supports the Biosystems at the Nanoscale program ($21
million). This program will study biologically based systems that have
potential applications in biocompatible nanostructured materials, new
devices for research in genomics, proteomics and cell biology, and
nanoscale sensory systems. Nanoscale research could be particularly
beneficial to understanding cellular communication and detection of
environmentally important signals.
The NSF is a pioneer among federal agencies involved with
nanotechnology research and the ASM supports additional interagency
cooperation between the NSF and the Department of Energy.
NATIONAL ECOLOGICAL OBSERVATORY NETWORK
The National Ecological Observatory Network (NEON) is a
continental-scale initiative composed of 10 distinct geographically
distributed, networked observatories that will serve as a platform for
integrated research across the sciences. NEON will allow for the first
time, teams of scientists to monitor the environment as it changes,
providing new insights into regional and national ecological health and
sensitivity. NEON will require new technologies, approaches and
methodologies and will provide an opportunity for scientists to break
new ground on innovative equipment and instrumentation that is so
crucial to move science forward. NEON sites will also provide
opportunities for other agency scientists to work in partnership with
NSF grantees on multidisciplinary projects that will enhance all of the
sciences.
The Administration has proposed $12 million for the initiative in
fiscal year 2004. The ASM is encouraged by the Administration's
support; however, the ASM recommends that the Subcommittee build upon
the President's request and fund NEON at $20 million for fiscal year
2004. This level of funding would allow the construction of one
complete observatory and a more rapid realization of NEON.
The ASM recommends that Congress give high priority to increasing
the NSF's funding as it considers its fiscal year 2004 appropriation.
Many of today's scientific achievements leading to the development of
biotechnology, antifreeze proteins, improved crops and plant-based
products, and DNA fingerprinting have their roots in basic research
supported by the NSF. The many future health and environmental
challenges the United States will face can only be overcome through the
potential of basic research to generate crucial new scientific
knowledge and advancements that lead to new technologies for the
future.
______
The following testimony will outline the ASM's funding
recommendations for EPA's research and development programs for fiscal
year 2004.
ENVIRONMENTAL PROTECTION AGENCY
The EPA's scientific research and development programs are critical
to researchers in the fields of applied and environmental microbiology.
Research on environmental microbiology is essential for improving air,
water, and soil quality; for assuring the safety of potable water
supplies; for protecting public water systems from biological threats;
for providing safe means for waste disposal; and for cleanups of
environmental contaminants. The ASM believes that sound public policy
for environmental protection depends on adequately funded programs of
intramural and extramural research based on a system of peer review to
assure that support is awarded to research programs having both quality
and relevance. The EPA has begun its own peer review system based upon
the National Science Foundation model. Critical peer review of both the
intramural and extramural research programs of the EPA are necessary
for ensuring the quality and scientific validity of studies that are
funded.
SAFE WATER AND WATER RESEARCH
The ASM strongly recommends increasing the Administration's request
of $49.2 million for Safe Drinking Water Research. The ASM also
believes the total funding level for Clean and Safe Water programs at
$2.9 billion is very inadequate and should be restored to fiscal year
2003 levels. The ASM is very concerned that the Administration
continues to cut the budgets of EPA's water programs that help to
ensure the quality of the nation's water system. The ASM requests that
Congress restore critical funding across EPA's water programs that
ensure the Clean Water Act and the Safe Drinking Water Act are properly
maintained. Maintaining a strong infrastructure for water quality is
the foundation of EPA's Area-Wide Optimization Program (AWOP), which is
designed to reduce consumers' exposure to microbial contaminants by
improving the performance of filtering technology. This program is
particularly important in maintaining the viability of drinking water
systems ability to comply with drinking water regulations, especially
the arsenic and microbial, disinfectant and disinfection by-products
rules.
The ASM applauds the EPA's continuing support of program
initiatives such as drinking water safety standards (e.g., Contaminant
Candidate List (CCL)), cost-effective water treatment technologies
focusing on microbes, improved water safety guidelines and pollution
indicators, and a federal database of beach advisories and closings
across the United States. It is essential that EPA's water quality
programs continue to focus on reducing the uncertainties surrounding
the exposure to biological and chemical contaminants by improving
analytical methods and risk assessments. ASM encourage these and other
efforts to improve drinking water implementation programs that
strengthen coordination between local, state, and federal authorities.
SCIENCE TO ACHIEVE RESULTS PROGRAM (STAR)
The ASM is concerned that the Administration is funding the STAR
program at the fiscal year 2000 level of $100 million. The flat funding
of this program over the past four fiscal cycles has lead to a
reduction in the program's ability to attract new researchers.
Therefore, the ASM believes the program would be better served if
funded at $110 million for fiscal year 2004. The STAR program is an
important mission-driven, extramural research initiative. This program
funds important environmental research proposals from scientists
outside the federal government and is a valuable resource for the EPA
in finding solutions to many complex environmental problems. Grants
made under the STAR program last from two to three years and provide
about $150,000 of scientific support per grant year. The STAR program
funds projects in specific focal areas including global warming,
drinking water, ecology of harmful algal blooms, water and watersheds,
ecological indicators, and pollution prevention (e.g., mercury), which
have significant microbiological components. For instance, in 1999,
STAR program grantees developed a model to better understand mercury's
terrestrial and aquatic fate and transformation processes that
influence environmental exposure and toxicity. This study is
particularly important in understanding ecosystem responses to changes
in mercury inputs and its affect on water quality, wildlife, and
humans.
The ASM is pleased to see that the EPA continues to expand the
bounds of STAR research by developing multi-year plans (e.g., for
Particulate Matter) that will relate STAR and intramural research
products to the Agency's strategic goals for different program areas.
These plans will help provide a framework for the Agency to consider,
and to explain the balance of R&D performers in individual research
areas. The ASM also recommends that 20 percent of the STAR budget
remain open for exploring broader issues not covered by targeted RFA's.
This mechanism captures the creativity of the scientific community to
foresee EPA relevant needs and solutions.
GRADUATE ENVIRONMENTAL FELLOWSHIP PROGRAM
The EPA's Graduate STAR Environmental Fellowship Program has been
an outstanding success in attracting some of the best young talent to
environmental research. Examples of research conducted in the STAR
program include new methods of classifying biologically impaired
watersheds and the human health effects of particulate matter. This
type of research is generally unique to the EPA and is integral to its
role as steward of the environment. Unfortunately, the Administration
is cutting the program funding in half ($4.9 million) in its fiscal
year 2004 budget. Therefore, the ASM highly recommends that the
Subcommittee allocate the necessary funds ($10 million) to keep the
STAR fellowship program competitive for the nation's best students.
The ASM believes the Fellowship program is one of the many
initiatives the federal government must fully support to ensure that
the nation is prepared to answer the complex scientific questions of
the future. Both the public and private sectors will benefit from a
steady stream of well-trained environmental specialists. The proposed
elimination of the program will hinder further research in such areas
as bioremediation, global warming, and water safety. The ASM also
shares the concern raised by the EPA's Science Advisory Board (SAB)
that without the Fellowship program, the EPA may be unable to replace
many of the EPA scientists nearing retirement with top-level
scientists. The ASM is also concerned that the quality and regard for
EPA science will suffer in the short and long-term if the program is
abolished. The EPA would not only lose valuable graduate research, but
the partnerships developed between industry environmental labs and the
EPA.
During this year's appropriations process, the ASM urges Congress
to consider these needs and provide the necessary incremental funding.
The ASM appreciates the opportunity to comment and would be pleased to
provide additional information.
______
PREPARED STATEMENT OF THE NORTHWEST INDIAN FISHERIES COMMISSION
Mr. Chairman, and Honorable Members of the Committee, I am Billy
Frank, Jr., Chairman of the Northwest Indian Fisheries Commission
(NWIFC). On behalf of all the tribes in the State of Washington I would
like to thank you for the opportunity to provide testimony concerning
the Environmental Protection Agency's (EPA) fiscal year 2004
appropriations.
We are specifically requesting that you identify $700,000 within
EPA's 104(b)(3) program for the tribes in Washington State, through the
Northwest Indian Fisheries Commission, for the purpose of maintaining
the existing and successful Coordinated Tribal Water Quality Program
(CTWQP). The purpose of our request is to continue implementation of
this inter-governmental mechanism for twenty-six participating tribes
and tribal organizations in the State of Washington for fiscal year
2004. We thank you for your support this past fiscal year when the
Committee provided us $630,000 for our needs. This program, has
provided a forum for continuous and meaningful communication between
tribal, state and federal agencies for more than a decade. Strong
congressional support for implementation of this tribal initiative
which began in 1990, and is still present today.
In recent years Congress has been very responsive to tribal
environmental protection issues through unprecedented increases in the
Environmental Protection Agency's General Assistance Program (GAP) for
tribes. Paradoxically, during this same time, this important tribal/EPA
water initiative is losing funding. The urgency of this request is a
result of significant erosion of base level funding for the CTWQP
potentially jeopardizing the long-term investment of federal and tribal
government's within this efficient and effective water resources
protection and management program.
The intent of this testimony and funding request is to maintain
this important and successful tribal initiative by:
--Providing implementation funding to further tribal objectives
relative to water resource management and protection of the
twenty-six participating tribes; and,
--Maintaining centralized program coordination at the Northwest
Indian Fisheries Commission.
Support for this model tribal initiative is timely, as it
complements and supports federal initiatives aimed at maintaining
healthy waterways. Further, as an existing program that centers around
watershed-based water quality protection by building partnerships, and
fostering inter-jurisdictional cooperation, it maximizes and leverages
the efficiency of available resource dollars. Additionally, it is a
critical component in the protection and restoration of our northwest
salmon and shellfish.
Justification for this funding request is based on:
--Legal rights and obligations of the federal government to protect
the treaty-reserved rights of the tribes;
--The United States' trust responsibility to protect the health and
environment of the tribes on a government-to-government basis;
--Cost effective use of a cooperative intergovernmental strategy to
accomplish national clean water goals; and,
--The minimization of conflict between multiple jurisdictions who
manage water resources.
To assist the Committee members, I would like to summarize
background information relevant to our request.
BACKGROUND
The NWIFC request is made on behalf of our nineteen (19) member
treaty fishing tribes, the Hoh, Chehalis, and Shoalwater Bay tribes in
western Washington, and the Yakama Indian Nation, Colville
Confederated, Spokane, and Kalispel Tribes in eastern Washington. The
funding request is to continue implementing the model Coordinated
Tribal Water Quality Program that began in 1990.
The State of Washington has been blessed with bountiful rivers and
streams. Five species of Pacific salmon and three species of anadromous
trout use streams in the State of Washington during the fresh water
stages of their life cycles. Historically, there were ample supplies of
fish for ceremonial, subsistence, commercial and recreation purposes.
Old growth conifer removal, riparian zone impacts, farming activities,
and channelization of the streams has reduced the productive capacity
of these streams to extremely low levels. Currently, there are Puget
Sound salmon stocks listed under the Endangered Species Act.
In 1979, the United States Supreme Court re-affirmed the treaty
tribes right to catch half of the harvestable number of anadromous fish
passing through tribal usual and accustomed areas. In 1980, the Federal
District Court held that the United States and the State of Washington
must not permit degradation of fish habitat which would diminish the
treaty harvest right. This decision specifically included degradation
by point and non-point pollution. The federal courts have recognized
that protection of water quality and other attributes of fish habitat
are necessary to secure the Constitutionally-protected rights of the
tribes to harvest fish.
The sovereign authorities of the Tribes and the legal principles
enunciated in United States v. Washington and other federal court
decisions support tribal involvement with both on and off-reservation
environmental issues. The federal court decisions recognized the tribes
as co-managers of the fish resource and water quality in our state. As
co-managers in Washington, the tribes must have the resources to
adequately participate in environmental protection programs.
The EPA Indian policy (1984) of working with federally recognized
tribes on a government-to-government basis concerns more than 375
Indian tribes in the lower 48 states which control more than 52 million
acres of land base. In our state, tribal reservations make up
approximately six percent (6 percent) of the State of Washington. Our
tribes have also retained usual and accustomed fishing grounds that
include most of the State of Washington.
The combined area of Indian reservations nationally is larger than
all of New England, yet EPA now devotes only a tiny fraction of its
personnel and funds to environmental protection for the tribes. This is
clearly a discriminatory prioritization of federal funds. On a national
level, tribal reservations represent three percent (3 percent) of the
land base of this nation. Although the EPA has worked closely with the
states to implement adequate environmental programs, little has been
done, until recently, to accomplish the same for the tribal
governments. Indian tribes are over two decades behind the states both
in resources received from the EPA and in technical assistance provided
by the EPA in developing tribal water program offices. A front end
investment will promote cooperation and increased tribal involvement in
environmental protection, as has been the case between the EPA and
state governments for the past 20 years. The Coordinated Tribal Water
Quality Program enables and fosters cooperative inter-jurisdictional
partnerships.
We recognize, support, and appreciate the successful efforts that
have been made to improve EPA Indian Programs and tribal funding. Our
request for additional funding is intended to stabilize existing
program implementation activities. Clearly, a means must be found to
support the long term funding of tribal programs that seek to protect
tribal treaty rights, their waters, and their peoples, or, the efforts
being made by EPA will not continue to be successful.
TRIBAL/STATE ROLES
Beginning in 1990, the State of Washington has supported tribal
involvement in environmental protection, both off and on-reservation.
The state is committed to work with the tribes on a government-to-
government basis as co-managers of the water resource in the
implementation of this program. The federally recognized Indian tribes
in our region have a long legacy of working cooperatively with the
State of Washington. The intent to foster that kind of relationship was
articulated in the Centennial Accord with Governor Gardner in 1989 and
was re-affirmed with Governor Locke in the 1999 Leavenworh Agreement.
The water quality protection efforts supported by EPA funding are part
of sustaining that kind of inter-governmental cooperation.
The Coordinated Tribal Water Quality Program, an EPA/Tribal
partnership, has generated successful models of state/tribal inter-
jurisdictional cooperation. Examples of these models are:
--the Tribal Water Quality Standards Template, which encourages
inter-governmental uniformity and coordination of water quality
management;
--the Clean Water Act Sec. 303(d) Cooperative Management Program,
which provides a forum for state/tribal government-to-
government relations throughout the CWA Sec. 303(d) listing and
implementation process; and,
--the Coordinated Tribal Data Management System for Water Quality,
design to promote efficiency, accuracy and cooperation in
utilizing water quality data.
The tribes must be part of the solutions to prevent and control
water pollution in the State of Washington. The tribes must participate
in these activities to protect their governmental interests and treaty-
protected fishing rights. In this time of existing and pending listings
of salmon stocks under the Endangered Species Act, neither we, nor the
resource, can afford to lose programs integral to our inter-
governmental cooperative watershed program. The Coordinated Tribal
Water Quality Program is part of protecting our nation's environmental
heritage.
CONCLUSION
For thirteen years, Congress has recognized and supported the
Coordinated Tribal Water Quality Program by appropriating funding to
maintain its operation. Even with the increased EPA General Assistance
Program tribal set aside, tribes in the State of Washington are in
danger of losing this successful tribal water quality initiative. This
model program demonstrates how tribes can develop environmental
programs and work with EPA to realize its long-range objective of
including tribal governments as partners in decision-making and program
management of tribal lands and resources.
We appreciate the difficulty Congress is facing in making decisions
for this next fiscal year. In the case of the EPA, Congress and the
Administration will probably direct their resources to address those
areas of highest risk to human health, public safety, and the
environment. Therefore, we want to reiterate that tribal reservations
and protection of their treaty resources have not been adequately
addressed for the past twenty years and thus represent the highest of
risks to this nation.
Sufficient and permanent funding is necessary to continue the
tribal cooperative program. Certainty of funding is necessary for the
tribes to hire permanent and professional staff to implement this
program. Without an ongoing investment by Congress much of the good
that has been accomplished to date will be lost.
Please consider our request for $700,000 for the Washington State
Tribal Water Quality Initiative. Once again, thank you for the
opportunity to provide testimony. Thank you also for your support in
developing a national model, which demonstrates the ability of tribal
governments to address environmental protection priorities through
cooperative watershed processes with state and local governments.
Thanks to this Committee, we are making significant progress, and
this water quality initiative is being supported at all levels. We hope
you and the Committee will continue to look favorably on our request.
______
PREPARED STATEMENT OF THE QUINAULT HOUSING AUTHORITY, QUINAULT INDIAN
RESERVATION
Thank you Chairman Walsh and other distinguished Members of this
Subcommittee for accepting this written testimony. The Quinault Indian
Nation and Quinault Housing Authority (QHA) Board of Commissioners
appreciate this opportunity to present our housing priority requests,
on the fiscal year 2004 Budget for the Department of Housing and Urban
Development, Indian Housing, Office of Native American Programs, to
this Subcommittee.
I would also like to take this opportunity to express my sincere
appreciation to the military personnel who are away from home and their
loved ones. On behalf of my People, I pray that they will have a safe
and expedient return to their families and to their Homeland.
NATIONAL INDIAN HOUSING NEEDS
$1 Billion.--For Native American Housing Assistance and Self-
Determination Act (NAHASDA)
$150 Million.--For Community Development Block Grants (CDBG)
$20 Billion.--For Indian Health Service Sanitation Facilities
Construction
$26 Million.--For USDA Indian Set-Aside for Utilities
$35 Million.--For Supplemental Housing Efforts
$4.8 Million.--For Technical Assistance to Indian Housing
Authorities by the Native American Indian Housing Council
JUSTIFICATION OF REQUESTS
For 32 years I have worked to improve living conditions on the
Quinault Indian Reservation, located on the Olympic Peninsula, in
Coastal Washington State. As an employee and Executive Director for the
Quinault Housing Authority, I am disappointed, to say the least, with
the President's budget proposal for Indian Housing for fiscal year
2004.
Today, we have the same concerns as other Americans about terrorist
attacks, chemical warfare, and how Homeland Security will protect our
Nation during this time of war. But, for American Indians and Alaskan
Natives (AI/AN), our concerns are heightened during these times because
of our basic human needs, which are often taken for granted by people
who do not live in rural remote areas such as reservations. Shelter for
our tribal members is a high priority for the Quinault Tribal
Government and the Quinault Housing Authority.
Many factors complicate and make costly the development and
maintenance of affordable housing for AI/AN. Noted studies, reports and
testimony on this subject have documented many of the obstacles and
challenges Indian Housing Authorities (IHAS) are confronted with in
just trying to provide housing to Indian people on reservations. While
the list may be extensive, the challenges identified most frequently
are (1) the remoteness of the reservations limit infrastructure and the
availability of human resources; (2) land-use restrictions and the
unfavorable land conditions on most reservations complicate the
development and maintenance of low-income housing; and (3) the cost of
the projects spiral upward because of the aforementioned challenges.
While there will always be hurdles to scale over and barriers to
remove, I find my job more benefiting than ever; not only to the people
I serve, but to myself as well. And, the Native American Housing
Assistance and Self-Determination Act of 1996 (NAHASDA) is largely
responsible for this new attitude.
The reauthorization of NAHASDA last fall opens the regulations up
to review and revisions. The negotiated rulemaking committee will need
the support of the Quinault Housing Authority, as well as the other
IHAS, to improve upon how NAHASDA works for us all. Each area will have
a representative and an alternate on the committee and it is our
responsibility to maintain a line of communication with these
representatives to know what is going on throughout the negotiated
rulemaking process and to provide an advisory role to our area
representatives.
If Congress supports our requests for increased funding, on behalf
of the Quinault Housing Authority, I would like to offer my support to
the negotiated rulemaking committee to support the formula they design
to distribute all new monies. I encourage my colleagues who operate
Indian Housing Authorities to support this committee in their efforts
to make NAHASDA an even better mechanism to improve housing on Indian
land.
Native American Housing Assistance and Self-Determination Act of 1996
(NAHASDA)--$1 Billion
The Indian Housing Block Grant line item has been flat-lined since
1998 but tribal housing needs have continued to increase with births,
marriages, extended life cycles of our Tribal Elders and tribal members
returning to the reservations. Many reports indicate that Indian
Housing is the worse in the United States, with an immediate need for
200,000 homes. One may ask how and why, but it is quite simple: we have
never received enough funding to eliminate the worse case conditions.
NAHASDA allows Tribes to develop and utilize their grants to fit
the needs of each Tribe. One thing we know is that we cannot develop
homes without an infrastructure. The Quinault Housing Authority has
been successful with NAHASDA. The flexibility of the Block Grant has
allowed us to assist our Tribal Elders by providing them with a home in
which they could age without the threat of eviction and homelessness.
Tribal youth activities have been accessible and have offered our youth
positive choices as alternatives to illegal drug and alcohol use. We
have acquired homes that families have out-grown and, in some cases,
where families have downsized and are no longer in need of the larger
homes they once occupied, we have also intervened.
The Quinault Housing Authority has been utilizing a USDA utilities
grant along with NAHASDA grants to develop the water/sewer, water
storage tank, power, telephone and streets for an eighty-unit (80)
development (Phases I and II). We are nearing the completion of the
USDA grant and we are moving forward and powering up the water/sewer
treatment facilities. We can now begin the development of homes.
Community Development Block Grant--$150 Million
This is a valuable grant utilized by Tribes to assist them in the
development of Community buildings, health clinics, youth facilities,
economic development, and infrastructure. As we continue to strive to
build healthy communities for our Tribal members we request an Indian
Set-Aside at a minimum of $150 Million.
Indian Health Service Sanitation Facilities Construction Funds--$20
Million
Presently, appropriation report language precludes Tribes from
utilizing IHS Sanitation Facilities Construction funds for HUD-funded
housing projects. With this restrictive language, Tribes are forced to
utilize NAHASDA funds to develop infrastructure rather than houses.
Removing the language will allow for Tribal flexibility for sanitation
construction, but will place additional stress on limited funding. We
support Health & Humans Services Secretary Tommy Thompson's request for
an additional $20 Million to improve sanitation and infrastructure
needs on Indian Reservations, with the removal of restrictive
appropriations language.
USDA Indian Set-Aside for Utilities--$26 Million
This program is vital to Tribal Housing Infrastructure needs. While
$13 Million is greatly appreciated, because of the cost of developing
utilities on a remote Indian Reservation, this amount would assist
little more that 13 Tribes. Increasing this amount to $26 million would
allow for NAHASDA funds to build houses.
The Quinault Housing Authority has developed the infrastructure for
a forty-unit housing development, Phase I, with streets, electricity,
telephone lines, water wells, water treatment, water storage tanks and
a sewer treatment facility. We have invested $6 million dollars into
this development. Engineering and construction estimates have projected
that housing will cost $3.2 million. We will extend the development to
include an additional forty (40) homes, Phase II, when funding is
available.
Bureau of Indian Affairs Housing Improvement Program--$35 Million
The Quinault Housing Authority administers this program for the
Quinault Indian Nation. Although the funding is minimal at $70,000
annually, it is vital to our Elders. Each year we are able to
rehabilitate two houses or construct one. This program allows for our
Indian Elders to live their declining years in comfort. We request $35
Million a year to supplement other housing efforts.
Technical Assistance--$4.8 Million
While the Quinault Housing Authority has not utilized the National
American Indian Housing Council's technical assistance, we are aware of
tribes who have. Most of these tribes are small and either lack
experience or knowledge in construction, administration, or grant
application preparation. Keep in mind the remoteness of many of these
Tribes. In order for grant dollars to get to the people identified and
most in need, and to get houses built, it is imperative that technical
assistance be provided. The National American Housing Council has a
vehicle in place to provide this expertise that is so desperately
needed by so many tribes. We support NAIHC's request of $4.8 Million
for fiscal year 2004.
Performance Concerns and Performance Based-Budgeting
HUD Assistant Secretary Michael Liu recently reported that 40
percent of NAHASDA funds remain unspent. We request that HUD be
required to provide an accurate accounting of IHBG funds and 1937
Housing Act funds alleged to be in the pipeline because we feel this is
an inaccurate estimation of the performance of NAHASDA.
We also request that the A-133 Audit supplemental be expanded to
accurately account for the performance of Indian Housing Block Grants.
Presently Indian Housing Plans and Annual Performance Reports are NOT
adequate to provide an accurate accounting of Tribal performance. Both
of these documents are extremely time consuming and repetitive. HUD
conducts their Audits, Reviews and Monitoring with the ``GOTCHA''
mentality. The Seattle HUD Office of Native American Programs has four
Certified Public Accountants (CPA's) on staff to conduct the reviews or
audits. We have the Federal Government conducting Financial Audits in
addition to the Independent Auditors; this is excessive. In some cases
we have had the Inspector General's Office also conducting audits.
Tribal Independent Financial Auditors are required to audit not
only the financial records, but verify that Current Assisted Stock
funding from the grant formula is being spent on the 1937 Housing Act
units as required. They also test the financial expenditures against
the Indian Housing Plans and verify the Annual Performance Reports'
accuracy. Again, we feel that this is over zealous auditing and
oversight.
Our opinion is that HUD needs to provide some hands-on technical
assistance to struggling Tribes, rather than having four CPA's come in
afterwards to criticize what they could have prevented. An Architect or
Engineer on staff would better serve Tribes. The CPA's would be better
utilized providing technical assistance in bookkeeping and accounting
focusing on those auditable areas for reporting.
CONCLUSION
We ask that you inquire into HUD's inaccurate accountability for
the Indian Housing Block Grant funding and further investigate the
Infrastructure funding for Tribes.
Mr. Chairman, and Honorable Committee members, I thank you for this
opportunity to be heard today. My thoughts and prayers are with you in
the difficult days ahead.
We appreciate and thank you for your hard work and attention to
Indian Housing issues and concerns.
______
PREPARED STATEMENT OF THE FLEET RESERVE ASSOCIATION
Mr. Chairman, members of the Subcommittee, the membership is again
pleased that the Fleet Reserve Association (FRA) has been invited by
the Subcommittee to present our legislative goals for the year 2004. On
behalf of more than 134,000 shipmates, I extend gratitude for the
concern, active interest and progress to date generated by the
Committees in protecting, improving, and enhancing benefits that are
richly deserved by our Nation's veterans.
FRA was established in 1924 and its name is derived from the Navy's
program for personnel transferring to the Fleet Reserve or Fleet Marine
Reserve for the Marine Corps after 20 or more years of active duty but
not 30 years to fully retire. During the required period of service in
the Fleet Reserve, assigned personnel earn retainer pay and are subject
to recall by the Secretary of the Navy.
FRA is the oldest and largest professional military enlisted
association exclusively serving and representing men and women of the
three Sea Services. It continues to seek protection and equity for
those who serve in or have retired from the United States Navy, Marine
Corps, Coast Guard and those veterans requesting assistance. The
Association has been active over the past 77 years in pursuing
Congressional and the respective Administration's support for quality
of life and veterans' programs for enlisted Sea Services personnel.
LEGISLATIVE GOALS IN BRIEF
FRA's membership has an average age of 68 years, all veterans of as
many as three wars, mostly retired from the Sea Services. Our members
have tasked us with the following Legislative priorities and to work
with Congress to obtain appropriate funding for each.
--Expand Military Retiree Access to the VA Health Care System.
--Explore possibilities for alternative Managed Health Care Programs
in VA.
--Expand Health Care Options for Retired Military Veterans under Age
65.
--Funding for the construction and leasing of additional nursing and
long-term care facilities.
--Amend Title 38 USC to authorize concurrent receipt of military
retired pay and veterans' compensation.
--Support statute requiring the repayment of separation pay if the
service member reenlists in the Reserve component, subsequently
is entitled to retired pay, or becomes entitled to VA
compensation.
--Support H.R. 1111 that amends the Uniformed Services Former Spouse
Protection Act to deter state courts from dividing VA or DOD
disability pay as property in divorce proceedings.
--Enhance educational programs and provide voluntary open enrollment
in the Montgomery GI Bill for all current active duty military
personnel, including military personnel who never enrolled in
VEAP or MGIB.
DEPARTMENT OF VETERANS AFFAIRS FISCAL YEAR 2004 BUDGET
Fiscal Year 2004 Budget
FRA continues its quest for a realistic DVA budget that will
provide adequate funding to care for all of the Nation's veterans,
their families and survivors. Although the fiscal year 2004 budget has
the largest percentage increase for any Government department, we
believe that in real funds no substantial increase has been noted and
that the increases are based on optimistic goals of collections and
other monetary reimbursements that we hope can be met. FRA has listed
the following veterans' programs it believes should be authorized and
funded in full. The Association urges your consideration and adoption
of these programs to assure America's veterans that they will be fully
compensated for their sacrifices while in the uniform of the Armed
Forces of the United States, and that their families and survivors will
be cared for as prescribed in the mission of the Department of Veterans
Affairs. Currently the Veterans Benefits Administration (VBA) part of
the DVA budget is funded as mandatory spending. FRA concurs with and
endorses the House Veterans Affairs Committee recommendation to convert
the veterans health care account from discretionary to mandatory. This
will ensure that the Veterans Healthcare Administration (VHA) has
sufficient funding without the necessity for annual hearings.
VETERANS HEALTH ADMINISTRATION
Suspension and Realignment of Veterans Categories
In January, citing mounting deficits and difficulties of operating
on funding based on Continuing Resolutions, Secretary Principi
suspended enrollments in Priority 8 for the remainder of this year. We
applaud the effort it took to make this decision to concentrate on the
VA core values of providing care for Service Connected veterans,
indigent and homeless veterans and those that need specialized services
such as blind rehabilitation and prosthetic services. The Secretary
promised that he will monitor the situation and if warranted may
possibly re-open enrollment sooner. We hope that with adequate funding
this suspension will be terminated in the near term.
The VA's proposal of a $250 yearly enrollment fee for non-service
connected Priority 7 and Priority 8 veterans is totally unacceptable.
All veterans, regardless of their financial status should be afforded
an opportunity to enroll in VA health care programs. We understand the
need for re-imbursement of monies utilized in treatment of veterans,
but believe it would make more sense for those veterans that are
Medicare eligible, and choose to have their health care at VA
facilities, be covered by subvention which is reimbursement of fees
directly to the VA by the Department of Health and Human Services. This
proposed new enrollment fee combined with new drug co-pay proposals for
Priority 7 & 8 veterans would have the effect of driving away many
veterans who just cannot afford the increased costs.
A second initiative announced by the Secretary will be the
establishment of a VA+Choice Medicare plan for Priority 8 veterans aged
65 or older who are denied enrollment in the VA system. Although this
is a good idea that will assist in providing medical coverage for
veterans unable to qualify for VA healthcare, we question the ability
of VA to provide adequate and accredited services for treatment within
a 30 day Medicare-mandated period and not somehow shortchange many
veterans who are waiting many months for appointments. We do not see
any excess capacity for treatment in most VA facilities especially in
areas where the majority of veterans live. At the press conference
announcing the VA's fiscal year 2004 budget, the Assistant Deputy
Secretary for Finance William H. Campbell was asked what would be done
if capacity was insufficient or the required Medicare standards could
not be met. He answered that the obvious response would be to contract
out the necessary services. It would seem that any outsourcing of
services would defeat the stated purpose of providing VA healthcare
services to those veterans unable to join the VA health care system.
FRA believes contracting out the necessary services would only anger
and confuse many older veterans who would be torn between remaining in
the VA system to continue on waiting lists or disenroll from the VA
Health Care System and then enroll in the VA+Choice in order to gain
access to health care in a more timely manner. A final consideration
for this proposal is the state of all Medicare+Choice programs. There
are problems with these programs and it is becoming more difficult for
Medicare-eligible people to locate plans and doctors willing to accept
new Medicare insured patients. FRA believes this could very well happen
with a VA+Choice plan as well.
Now that the war with Iraq has started, FRA notes with
encouragement the letter from Senator Specter and Senator Graham which
was sent to the Pentagon on February 14, 2003 requesting a formal
report on the ``military's preparedness to protect forces in southwest
Asia'' and a second letter from VA Secretary Principi on the same day
which requested information on the current health of the deploying
forces. Further this letter requested information on ``record-keeping
of medical treatment during deployment; information-gathering
mechanisms; and the Pentagon's preparedness to share data with the
Department of Veterans Affairs''. We believe the proactive actions by
the members of these two committees and Secretary Principi's foresight
should help in resolving any healthcare issues from a possible conflict
in the area and will hopefully prevent or at least mitigate any
problems such as what happened with the so called Gulf War Syndrome. We
trust that continued pressure from Congress will ensure the Pentagon
maintains its improved record keeping and will share their information
in a timely manner to aid the DVA in its mission.
FRA understands the VHA is undergoing major changes and that one of
its stated goals is to drastically reduce the waiting times for primary
care. We hope that this goal includes dental care. In December FRA
received a call from one of its members who lives in the Phoenix area.
He is 100 percent service connected disabled and entitled to dental
care which he desperately needs as one of his prescriptions has badly
deteriorated his teeth. When he called to make an appointment he was
told the earliest he could be seen was two years and three months. We
hope this is not wide-spread throughout the VA system, if so, FRA
believes that expanded recruiting efforts and increased pay levels for
dentists as briefed to VSO's at the January meeting of the National
Leadership Board will help ease the long waiting times for dental care.
Nursing Homes, Long Term Care, and Other Health Care Programs
Public Law 106-117, Section 101, The Veterans Millennium Health
Care Act made great strides in providing long-term care for our
veterans. However, this program is only authorized for a four-year
period, and only for veterans who need care for a service-connected
disability, and/or those with service-connected disability ratings of
70 percent or more. This program should be extended, expanded and
funded to include veterans with service-connected disability ratings of
50 percent.
World War II and Korean veterans are in their 60s and older, as are
some Viet Nam veterans, and many require a greater level of long-term
care. No one can argue that as veterans grow older, more and more of
them will become dependent upon the VA to provide the necessary care in
nursing homes, domiciles, state home facilities, and its underused
hospital beds. The Nation can ill afford to wait for out-year funds
before it expands nursing or long-term care.
FRA disagrees with the methodology used in collecting funds for the
Millennium Act and transferring that money to the Treasury. VA's
rationale for this is to allow more discretionary VA spending under the
current caps set in the Balanced Budget Act. The Association views this
a slight of hand rather than a reliable business practice and firmly
believes any money collected from veterans for veterans' health care
should stay within the VHA.
Tobacco-related Illnesses
In 1998, Congress changed the law prohibiting service-connection
for disabilities related to smoking. Many veterans began using tobacco
during their military service. It was a way of life and information
detailing the health risks associated with tobacco use and nicotine
addiction was nonexistent. In earlier years there were many who
believed the Armed Services facilitated smoking by including cigarettes
in meal rations, and cigarettes were sold at discounted prices in
military exchanges. FRA recommends that Congress revisit and repeal its
1998 decision, and provide the appropriate funds.
Medical and Prosthetic Research
Dollar for dollar, VA is widely recognized for its effective
research program. FRA continues to support adequate funding for medical
research and for the needs of the disabled veteran. The value of both
programs within the veterans' community cannot be overstated.
VETERANS BENEFITS ADMINISTRATION
Separation Pays
Under current law, service members released from active duty who
fail to qualify for veterans' disability payments, and are not accepted
by the National Guard or Reserve, never have to repay any portion of
separation pay. If, however, qualified for either, it's time for pay-
back. FRA has difficulty understanding why the individual willing to
further serve the Nation in uniform, or is awarded service-connected
disability compensation, should have to repay the Federal government
for that privilege.
FRA is opposed to the repayment requirement. The Association
recommends the repeal or the necessary technical language revision to
amend the applicable provisions in Chapters 51 and 53, 38 USC, to
terminate the requirement to repay the subject benefits. (Also requires
an amendment to 1704(h)(2), 10 USC.)
Court-Ordered Division of Veterans Compensation
The intent of service-connected disability payments is to
financially assist a veteran whose disability may restrict his or her
physical or mental capacity to earn a greater income from employment.
FRA believes this payment is exclusively that of the veteran and should
not be a concern in the states' Civil Courts. If a Civil Court finds
the veteran must contribute financially to the support of his or her
family, let the court set the amount allowing the veteran to choose the
method of contribution. FRA has no problem with child support payments
coming from any source. However VA disability should be exempt from
garnishment for alimony. If the veteran chooses to make payments from
the VA compensation award, then so be it. The Federal government should
not be involved in enforcing collections ordered by the states. Let the
states bear the costs of their own decisions. FRA recommends the
adoption of stronger language offsetting the provisions in 42 USC, now
permitting Federal enforcement of state court-ordered divisions of
veterans' compensation payments.
Montgomery GI Bill (GI Bill)
The GI Bill is one of the major enticements for enlisting in the
United States Armed Forces. FRA believes that continued improvements to
the GI Bill are necessary in order to continuously attract new recruits
per Congressionally mandated recruitment levels each year.
The Association is grateful that the 107th Congress passed enhanced
MGIB benefits. We are also very encouraged and heartily endorse the
House Veterans Affairs Committee recommendation to increase the MGIB
payment to $1,200 effective October 1, 2004. FRA believes Congress
should increase MGIB benefits annually based on a current average cost
of a four-year state run college education.
In the past, would be participants in the MGIB were not permitted
to enroll because they never enrolled in the Veterans Educational
Assistance Program (VEAP). During the VEAP era, that program was
considered to be insufficient in providing adequate funding for a
college education. Therefore, current active duty military members who
have never enrolled in VEAP or MGIB should be given an opportunity to
participate. It is somewhat puzzling to know that an individual may
enlist to enroll in the MGIB, but cannot enroll if he or she reenlists.
The question is, WHY NOT?
Meanwhile the Association continues to subscribe to the belief once
offered by the Treasury Department, that veterans who take advantage of
their GI bill will eventually return more money to the U.S. Treasury
than was spent by the Federal government for their education.
Disability Compensation Claims Processing
FRA believes VA's efforts in decreasing the backlog of initial
disability claims are commendable and are continuing at a very good
rate.
However there appears to be an impediment at the Board of Veterans
Appeals (BVA) that is growing daily. In February 2002, the BVA started
a process that allows them to be responsible for gathering all
available information to assist their efforts in processing veterans'
claims and appeals. Currently there are over 9,000 cases in various
stages of development. Since last year they have only cleared a little
over 600 cases. The 26 employees doing this work are overwhelmed.
During a recent visit to the BVA, a member of the FRA staff was told
there are no plans in the immediate future to expand the workforce
dealing with these claims. It appears that strides made in initial
claims processing may be negated by this current and growing backlog of
cases on appeal. FRA urges the VBA to expeditiously expand the
workforce dealing these cases.
NATIONAL CEMETERY ADMINISTRATION
Cemetery Systems
The National Cemetery Administration (NCA) has undergone many
changes since its inception in 1862. Currently, the administration
maintains almost 2.5 million gravesites at 124 national cemeteries in
39 states, the District of Columbia and Puerto Rico.
One quarter of the nation's 26 million veterans alive today is over
the age of 65. Rapidly aging veteran populations coupled with the death
rate of World War I and World War II veterans create resource
challenges within the NCA. It was estimated that the number of deaths
in 2002 were over 680,000 veterans, and by 2006 that number will
increase to 687,000 annually, or an average of 1,900 funerals a day.
During this time period, the interment rate will continue to rise
thereby placing even greater strain on NCA's workforce and equipment.
FRA is grateful to Congress for its increased funding for new
cemetery sites in Atlanta, Detroit, Southern Florida, Oklahoma City,
Pittsburgh and Sacramento. The NCA is doing much to meet resource
challenges and the demand for burial spaces for aging veterans. With
additional resources, the NCA will hopefully be able to meet the
demand. FRA urges increased funding, structured so the NCA has
exclusive use for the purchase of land, preparation, construction and
operation of new cemeteries, the maintenance of existing cemeteries,
and the expansion of grants to States to construct and operate their
own cemeteries.
CONCLUSION
Mr. Chairman. In closing, allow me to again express the sincere
appreciation of the Association's membership for all that you, the
Veterans Affairs Committees, have done for our Nation's veterans over
these many years.
FRA is grateful to address its recommendation for funding of the
Department of Veterans affairs. Granted, not all veterans' issues are
cited in this statement; however, the Subcommittees do have the
Association's support for the improvement or enhancement of any
veterans programs not addressed herein.
______
PREPARED STATEMENT OF THE UNIVERSITY CORPORATION FOR ATMOSPHERIC
RESEARCH (UCAR)
On behalf of the University Corporation for Atmospheric Research
(UCAR) and the university community involved in weather and climate
research and related education, training and support activities, I
submit this testimony for the record of the U.S. Senate Committee on
Appropriations, Subcommittee on VA, HUD and Independent Agencies. UCAR
is a consortium of 66 universities that manages and operates the
National Center for Atmospheric Research (NCAR) and additional
research, education, training, and research applications programs. In
addition to its member universities, UCAR has formal relationships with
approximately 100 additional undergraduate and graduate schools
including historically black and minority-serving institutions, and 40
international universities and laboratories. UCAR is supported by the
National Science Foundation (NSF) and other federal agencies including
the National Aeronautics and Space Administration (NASA).
NATIONAL SCIENCE FOUNDATION (NSF)
The science community was encouraged last year when Congress
passed, and the President signed, the National Science Foundation
Authorization Act of 2002 authorizing the doubling of NSF's budget over
the next several years. Doubling the NSF budget would allow for the
long overdue enhancement of the research directorates, enable funding
of several critical large facility projects that have already been
approved by the National Science Board, and strengthen NSF's K-12
education projects including those targeting populations of students
who are underrepresented in this nation's scientific endeavors. While
last year's support from Congress and the White House looked promising,
the NSF fiscal year 2004 Request recommends $5.48 billion overall, a
flat budget at best when compared to fiscal year 2003 final funding
plus inflation. I urge the Committee to appropriate for NSF a budget of
$6.39 billion (a 19 percent increase over the fiscal year 2003 final
appropriation), as authorized by Congress, in order to bring this
country's physical sciences and engineering programs into parity with
those of the life sciences.
NSF Research and Related Activities (R&RA)
The peer-reviewed work supported by the directorates and programs
of NSF's Research and Related Activities represent a major portion of
this nation's scientific research achievement and technological
progress. The fiscal year 2004 request for RR&A is $4.1 billion, a
completely inadequate 0.6 percent increase over the fiscal year 2003
final budget. I urge the Committee to appropriate for Research and
Related Activities an amount commensurate with the doubling of the NSF
budget as authorized by Congress.
Geosciences (GEO) Directorate.--This NSF Directorate is the
principal source of federal funding for university-based research in
the geosciences. The GEO section of the fiscal year 2004 NSF Request
states that, ``Breakthroughs in observing, modeling, and understanding
complex Earth systems are coming just at the time when society is in
critical need of sound scientific advice on how to mitigate or adapt to
changes in the habitability of the planet. The geosciences stand poised
to make tremendous contributions to improve the quality of life by
providing useful information to decision makers about the key planetary
processes, their complex interactions, and, where possible, their
future implications.'' This tremendous potential cannot be achieved
with diminished resources as suggested by the fiscal year 2004 request
of $687.9 million, a 0.19 percent decrease when compared with the
fiscal year 2003 final appropriation. I urge the Committee to
appropriate for the Geosciences Directorate an amount commensurate with
the doubling of the NSF budget as authorized by Congress.
Atmospheric Sciences (ATM).--Within the GEO Directorate, the
Division of Atmospheric Sciences supports research that contributes new
understanding of the behavior of the Earth's atmosphere and its
interactions with the sun in addition to supporting the operation and
maintenance of large, complex facilities required for such research.
ATM programs are of direct importance to the physical safety of our
citizens, our economic health, and global issues of national security
relevance, such as severe weather, climate change, the security of our
communications infrastructure, and the environmental health of the
planet. I urge the Committee to appropriate for the Atmospheric
Sciences within the Geosciences Directorate an amount commensurate with
the doubling of the NSF budget as authorized by Congress.
National Center for Atmospheric Research (NCAR).--Funded within
ATM, the world-class National Center for Atmospheric Research supports
the country's entire atmospheric and related sciences community through
observational and computer facilities, instrumented research aircraft,
and an extensive visiting scientist program. The work of NCAR is
critical to our understanding of weather phenomena, space weather,
climate change, the chemical composition and behavior of the Earth's
atmosphere, and the societal impacts of environmental change. In
addition, NCAR's research products are applied to create technologies
that mitigate the impacts of hazardous weather on air and surface
transportation and that provide support for the prediction and control
of wildland fire. I urge the Committee to appropriate for the National
Center for Atmospheric Research an amount commensurate with the
doubling of the NSF budget as authorized by Congress.
Major Research Equipment and Facilities Construction (MREFC) Programs
Support for unique national facilities, as provided through NSF's
MREFC account, is necessary to advance U.S. capabilities required for
world-class research. While requested fiscal year 2004 funding exceeds
that of the fiscal year 2003 final by 35 percent, this amount will
still not allow the tremendous progress that this country is capable of
making in developing MREFC projects that have already been approved by
the National Science Board and that could serve this nation well. I
urge the Committee to appropriate for the Major Research Equipment and
Facilities Construction (MREFC) Programs, an amount commensurate with
the doubling of the NSF budget as authorized by Congress.
HIAPER.--When the Budget Request was prepared, the fiscal year 2003
final budget for NSF had not been completed. Since HIAPER development
funding was completed in the fiscal year 2003 Omnibus Bill, HIAPER,
funded in the fiscal year 2004 Request at $25.5 million, does not need
to be included in the final budget. This gives the Committee a
tremendous opportunity to apply this $25.5 million to another project
in the extensive list of those approved by the National Science Board.
On behalf of the atmospheric sciences community, I want to thank the
Committee for the crucial role it played in seeing that funding for
HIAPER, the nation's newest high-altitude research aircraft, was
appropriated over the past several years.
Earthscope.--This multi-purpose geophysical instrument array will
allow scientists to make major advances in our knowledge and
understanding of the structure and dynamics of the North American
continent. The initial Earthscope activity, deployment of high-
capability seismometers throughout the United States, will improve our
resolution of the subsurface structure, lead to advances in
understanding fault conditions and the rupture processes of
earthquakes, and make contributions to the atmospheric sciences. I urge
the Committee to support the fiscal year 2004 request of $45.0 million
for Earthscope.
Education and Human Resources (EHR)
Nothing is more important for the future of our nation than the
education of the next generation of leaders. I applaud the EHR request
for increased stipends to $30,000 annually to attract our best
graduates for research and teaching fellowships and ask the Committee
to ensure that this is included in the final budget bill.
National STEM Digital Library (NSDL).--I would like to draw the
Committee's attention to a bold, new NSF effort to provide the nation
with a comprehensive digital library for the sciences. NSDL will
provide innovative infrastructure to support teaching and learning
across scientific fields. Such a massive effort needs strong backing,
particularly during the initial development-into-operations phase. I
urge the Committee to support the NSDL effort, the budget for which
appears to be eroding (down $5 million in the Request from the fiscal
year 2003 appropriation of $25 million), even in this early, critical
stage of its development.
Climate Change Research Initiative (CCRI)
NSF has played a key role in the U.S. Global Change Research
Program (USGCRP) and now, as part of the Administration's multi-agency
Climate Change Research Initiative, the agency will support research to
reduce uncertainty and provide timely information to facilitate policy
decisions. The Request states that, ``These investigations will
complement NSF's ongoing programs in climate change science.'' In my
opinion, the Administration could take far more advantage of NSF's
strengths in achieving the nation's climate research goals. Therefore,
I urge the Committee to support, at the very least, the fiscal year
2004 request for $25 million for CCRI, ask that you ensure that these
activities truly complement and not diminish the critical research
activities that have existed in the past under USGCRP, and ask that you
investigate expanding NSF's climate change research responsibilities in
fiscal year 2004 in order to tap NSF's extraordinary potential to
advance the research agenda.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA)
Following the space shuttle disaster, we understand that NASA has
the enormous and unfortunate task of examining and possibly revamping
the Space Flight account. As this task is performed, I urge the
Committee to protect NASA's strong and vibrant science accounts and not
allow them to be harmed by fund transfers. I would like to comment on
the following NASA Science Aeronautics and Exploration programs that
contribute to the health and well being of the nation, in part through
the achievements of the atmospheric and related sciences community:
Space Science Enterprise
The extraordinary mission of the Space Science Enterprise is to
chart the evolution of the universe and understand its galaxies, stars,
planetary bodies, and life; to discover planets around other stars; and
to understand the behavior of the sun and its interaction with Earth. I
urge the Committee to support the Administration's fiscal year 2004
request for the Space Science Enterprise of $4.0 billion.
Sun Earth Connections (SEC).--The SEC program within the Space
Science Enterprise formulates missions to investigate the effects of
solar phenomena on Earth and on the space environment. Its overall goal
is to understand the changing sun and its effects on the Solar System,
life, and society. I urge the Committee to support the Administration's
fiscal year 2004 request for Sun Earth Connections by appropriating the
request of $769.6 million. SEC contains several missions that promise
great benefit to society, and are of particular importance to our
community, including the following:
Thermosphere, Ionosphere, Mesosphere, Energetics and Dynamics
(TIMED), the first science mission of Solar Terrestrial Probes within
SEC, was successfully launched in 2001. The mission provided the first
ever data on the composition of the Mesosphere and Lower Thermosphere/
Ionosphere (MLTI) region of the Earth's atmosphere, and is
investigating the influences of the sun and humans on this altitude
(60-180 km) in order to understand MLTI variability and the potential
impact of these changes on satellite tracking, spacecraft lifetimes,
degradation of spacecraft materials, and re-entry of piloted vehicles.
I urge the Committee to continue to support TIMED operations and data
analysis at a level at least equal to the fiscal year 2003
appropriation.
Solar-B is a U.S./Japan collaboration to investigate the
interaction between the Sun's magnetic field and its corona. The
mission will provide space weather data to help understand events such
as solar mass ejections that can endanger astronauts in orbit and
impact Earth's atmosphere occasionally causing expensive communications
disruptions. The Solar-B launch, originally scheduled for 2005, has
been delayed in Japan until 2006. This unavoidable shift in schedule
will add to the cost of the program. I urge the Committee to support
the fiscal year 2004 request for $12.5 million for the continued NASA
development of the Solar B mission's instrument subsystems, and to
support, with new funding so as not to adversely affect the mission,
additional costs that are incurred as a result of launch delay.
Earth Science Enterprise (ESE)
The purpose of ESE missions is to provide data sets that hold the
key to answering one of the most important questions for the future of
this planet: ``How is the Earth changing, and what are the consequences
for life on Earth?'' Even so, the fiscal year 2004 Request gives ESE
the only decrease of any NASA Enterprise. In addition to its ongoing
programs that have important practical applications for watershed
management, flood remediation, ecosystem management, and wildland fire
assessment and response, ESE will play an increasingly important role
in the Administration's Climate Change Research Initiative by providing
state-of-the-art remote sensing measurements critical to understanding
climate change processes. While the fiscal year 2004 Request states
that the ESE decrease reflects the fact the several large programs are
past their peak development phases, the funding level allows for no
growth. I urge the Committee to keep the investment in NASA balanced by
providing an increase for the Earth Science Enterprise that is
consistent with increases for other NASA Enterprises such as Space
Science and Biological and Physical Research. Such support would
provide ESE with an approximate 10 percent increase over the fiscal
year 2003 appropriated amount.
Earth System Science.--Within ESE, Earth System Science employs a
constellation of more than 15 Earth observing satellites collecting
global data used to analyze, model, and improve our understanding of
the Earth system. Application of these data will enable improved
predictions of climate, weather, and natural hazards. I urge the
Committee to support the fiscal year 2004 budget request of $1.47
billion for the Earth System Science Theme. This Theme area contains
several programs that are of great benefit to society, and are of
particular importance to the atmospheric sciences community, including
the following:
Climate Change Research Initiative (CCRI) Acceleration.--New in
this year's ESE request is the CCRI Acceleration program that advances
several climate change data collection and evaluation programs that are
of great importance to society. I urge the Committee to support the
CCRI Acceleration activities as long as the request of $26.0 million is
not drawn from and thereby diminishing other critical research
programs.
Earth Observing System Data and Information System (EOSDIS)
Development.--EOS satellites collect data on the major interactions of
the land, oceans, atmosphere, ice, and life that comprise the Earth
system in order to answer questions about how the Earth is changing and
what the consequences of those changes are for life. EOSDIS development
supports new Earth Science Enterprise missions and the data sets are
used broadly in a number of scientific fields. I urge the Committee to
support the fiscal year 2004 request of $98.3 million for EOSDIS.
AURA.--Scheduled to launch next year, this EOS mission will provide
data to answer such critical questions as whether the Earth's ozone
layer is recovering and whether air quality is deteriorating around the
globe. These are issues that affect environmental policies and
international agreements. I urge the Committee to support the fiscal
year 2004 budget request of $52.5 million for AURA development.
Missions in Formulation.--As the first cycle of EOS missions comes
to a close, future missions are being planned to continue to meet the
scientific needs of the NASA Earth System Science projects. I urge the
Committee to support the Administration's fiscal year 2004 request of
$274.4 million for EOS Missions in Formulation.
U.S. Global Change Research Program (USGCRP).--While the
interagency USGCRP is not called out specifically in the Request, I
would like to acknowledge the crucial role NASA has played in this
program in the past and the critical role it plays and will play in the
Administration's Climate Change Research Initiative. NASA research
efforts in global change involve space-based, satellite studies of the
Earth as an integrated system. These activities, concentrated within
the ESE, represent a critical investment for the future of this
country, its economy, and the health and safety of its citizens. I urge
the Committee not to lose sight of critical U.S. Global Change Research
Program activities as the Climate Change Research Initiative continues
to provide important new structure to this nation's climate research
efforts.
Earth Science Applications
Within NASA's Earth Science Applications Theme, we are pleased to
note the increased request for Earth Science Education and the
continuation of the GLOBE Program. I urge the Committee to support the
fiscal year 2004 request of $20.8 million for Earth Science Education.
Office of Aeronautics Technology
Within the Office of Aeronautics Technology, The Aviation Safety
and Security Program encompasses four areas, one of which is Weather
Safety Technologies. In partnership with the FAA, the Department of
Defense and the aviation industry, this program develops and supports
the implementation of technologies to reduce fatal aviation accidents
and delays caused by weather hazards. I urge the Committee to support
the fiscal year 2004 request for the Weather Safety Technologies
program of $42.3 million.
On behalf of the UCAR community, I want to thank the Committee for
the important work you do for U.S. scientific research, education, and
training. We understand and appreciate that the nation is undergoing
significant budget pressures at this time, but a strong nation in the
future depends on the investments we make in science and technology
today. We appreciate your attention to the recommendations of our
community concerning the fiscal year 2004 budget of NSF and NASA.
______
PREPARED STATEMENT OF THE DORIS DAY ANIMAL LEAGUE
Mr. Chairman and members of the Subcommittee, thank you for the
opportunity to present testimony relevant to the fiscal year 2004
budget request for the U.S. Environmental Protection Agency's (EPA)
Office of Research and Development (ORD) and Science and Technology
Account. I hope the Subcommittee will consider the concerns of the
350,000 members and supporters of the Doris Day Animal League and take
steps to ensure the EPA recognizes the necessity of sound science
approaches in its research, development and validation of non-animal,
alternative toxicological test methods. These methods can significantly
reduce the numbers of, and ultimately replace, animals in its testing
programs.
RESEARCH, DEVELOPMENT AND VALIDATION OF NON-ANIMAL, ALTERNATIVE TEST
METHODS
In recent fiscal years, the enacted budget for the ORD has hovered
at approximately $500 million, comprising just 9 percent of EPA's total
budget. In a report filed by the agency's own Science Advisory Board,
fiscal year 2002 Presidential Science and Technology Budget Request for
the Environmental Protection Agency: An SAB Review, the SAB urged
Congress to increase the proportion to 12 percent by 2004. However,
within these appropriations, we have found it difficult, if not
impossible, to track funding by ORD for specific non-animal,
alternative test methods to meet the EPA's needs in new testing
programs. It is our contention that many emerging technologies, which
often prove to be faster to run, less expensive and at least as
predictive as current animal tests used for hazard and risk assessment,
would benefit from research and development dollars.
Thanks to the leadership of Chairman James Walsh, House
Subcommittee on VA, HUD and Independent Agencies Appropriations, the
House inserted a $4 million directive for the EPA to research, develop
and validate non-animal, alternative test methods in the fiscal year
2002 bill. Ultimately, the conference committee for the VA, HUD and
Independent Agencies fiscal year 2002 bill agreed to the following
language:
``The conferees have agreed to provide $4,000,000 from within
available funds throughout the Science and Technology account, for the
research, development, and validation of non-animal, alternative
chemical screening and prioritization methods, such as rapid, non-
animal screens and Quantitative Structure Activity Relationships
(QSAR), for potential inclusion in EPA's current and future relevant
chemical evaluation programs. Activities funded in this regard should
be designed in consultation with the Office of Pollution Prevention and
Toxic Substances.''
The animal advocacy community is greatly appreciative of this
first-ever directive to the EPA. However, the House report language for
fiscal year 2002 also included a directive for a report to Congress on
the specifics of the EPA's expenditures. It is truly unfortunate that
this language was deleted from the final conference report as we have
had significant difficulty in obtaining concrete information from the
agency on the expenditure of funds to date. And, in fact,
communications from the EPA which have been shared with Chairman Walsh
clearly delineate an agency preference for ``basic research'' into long
range potential methods versus ``applied research'' that may yield
immediate results with existing promising methods. In addition, to our
current knowledge, the EPA did not of its own volition direct
additional resources to these efforts in fiscal year 2003.
We request that $5 million, from the current budget request, be set
aside for research, development and validation for regulatory
acceptance of non-animal, alternative test methods. Activities funded
by these allocations shall be designed in consultation with the Office
of Pollution Prevention and Toxic Substances. It is our preference that
these test methods have direct relevance to new EPA testing programs,
including the High Production Volume chemical testing program,
Endocrine Disruptor Screening Program (EDSP) and Children's Health
initiative. A case in point is the lack of strategy by the agency to
research, develop, validate and integrate in vitro systems for thyroid
disruption and metabolism, which would greatly reduce the numbers of
animals slated for death under the EDSP. Our request for $5 million
represents just 1 percent of the total ORD budget and would be
perceived by all stakeholders as a genuine commitment by EPA to new
non-animal, alternative test methods.
I also request that the Subcommittee require the EPA report to the
Subcommittee by April 30, 2004 regarding expenditures and plans for
additional expenditures for fiscal year 2004 funds.
CONTINUED RELIANCE ON ANIMAL TEST METHODS
As you may know, the EPA requires substances such as pesticides,
industrial chemicals, and others to be tested for their rates of skin
corrosion, skin absorption, and skin irritation. Traditionally, these
tests cause grave pain, distress and death to great numbers of
animals--including literally chemical burns through the skin and organs
of rabbits.
Fortunately, there are non-animal test methods that are just as
predictive, if not more so. Human skin equivalent tests such as
EpiDermTM and EpiSkinTM have been scientifically
validated and accepted in Canada, the European Union, and by the
Organization for Economic Cooperation and Development (OECD), of which
the United States is a key member, as complete replacements for animal-
based skin corrosion studies. Another non-animal method,
CorrositexTM, has been assessed as scientifically valid by
the U.S. Interagency Coordinating Committee on the Validation of
Alternative Methods and data generated from the non-animal test is
accepted by the relevant federal agencies. Various tissue-based methods
have been accepted in Europe as total replacements for skin absorption
studies in living animals. Government regulators in Canada accept the
use of a skin-patch test in human volunteers as a replacement for
animal-based skin irritation studies (for non-corrosive substances free
of other harmful properties).
I therefore respectfully urge that you also include language in the
report accompanying the fiscal year 2004 VA, HUD and Independent
Agencies Appropriations bill stating that: No funds for the EPA
(including salaries or expenses of personnel) may be used for the
purpose of assessing data from an animal-based test method when a non-
animal test for the desired endpoint has been validated and/or accepted
by the OECD or its member countries.
CONCLUSION
I respectfully request that the Subcommittee direct the EPA provide
$5 million for the ORD to research, develop and validate non-animal,
alternative toxicological test April 24, 2003 Page 4 methods for
regulatory acceptance and that the agency be required to provide a
timely, detailed report on the expenditure of these funds.
I also respectfully request that the Subcommittee direct that no
funds be used to assess data from an animal-based method when a
scientifically valid non-animal test is widely accepted.
______
PREPARED STATEMENT OF THE MICKEY LELAND NATIONAL URBAN AIR TOXICS
RESEARCH CENTER
The Mickey Leland National Urban Air Toxics Research Center (NUATRC
or Leland Center) is requesting a $2.5 million appropriation for fiscal
year 2004 to continue the air quality public health research on air
toxics in urban areas as directed by the U.S. Congress. The NUATRC is a
501(c)(3) institution, which was authorized by Congress in the Clean
Air Act Amendments of 1990 (Title III, Section 301 (p)).
The NUATRC has been operational for over ten years as a unique
public/private research partnership. Active research has been performed
for eight years. The NUATRC receives EPA Assistance Awards based upon
Congressional appropriations. We leverage these federal funds with non-
federal funds contributed from a variety of government and non-
government sources. Our 2003 non-federal contributor's commitments
included major U.S. companies, local government, and a local privately
funded ambient monitoring network; with industrial firms being the
major private contributors. To further leverage our funding, NUATRC
utilizes an administrative services agreement with The University of
Texas-Houston Health Science Center in the Texas Medical Center
complex. This arrangement lowers the NUATRC's overall costs and allows
the NUATRC to take advantage of the world-renowned scientific community
at The University of Texas and the Texas Medical Center, as directed by
Congress, while still remaining an independent entity.
The NUATRC's mission is to sponsor and direct sound, peer-reviewed
scientific research on the human health effects of air toxics in urban
populations. The NUATRC's goal is research on these topics driven by
scientific questions requiring answers by policy and decision makers in
government, industry and academia to improve the scientific basis of
regulatory decisions. It is an integral part of the air toxics strategy
established by Congress to assess the risks posed by air toxics to
individuals living in areas where air quality concerns have been
expressed by both medical and scientific experts and urban community
leaders.
The NUATRC is governed by a nine-member Board of Directors,
appointed pro rata by the Speaker of the U.S. House of Representatives,
the Majority Leader of the U.S. Senate, and the President of the United
States. The current membership of the Board of Directors is shown in
Attachment 1. We are grateful for the recent appointments of Wilma
Delaney, Monica Samuels, and Mary Gade by the President to our Board.
We are awaiting action on the appointment of two additional Board
Members. One is a House appointment; one is a Senate appointment.
Amongst its duties, the NUATRC Board appoints a 13-member Scientific
Advisory Panel, selected from national research institutions, academic
centers, government agencies, and the private sector. The current
membership of the Scientific Advisory Panel is shown in Attachment 2.
ACHIEVEMENTS
We have established the following major scientific achievements
over the last several years that are in keeping with our Congressional
charge in the Clean Air Act Amendments of 1990:
--Establishment of the importance of personal exposure (e.g. what
people breathe) to the evaluation of possible public health
effects. These findings are stimulating a reevaluation of the
national emphasis on outdoor levels and sources.
--Development of inexpensive and accurate personal monitoring
technology to allow measurements of individual exposures to air
toxics. This provides a new and, for the first time, direct
view of the possible public health risks of personal exposure
to air toxics. To our knowledge, this is a unique contribution
by the NUATRC. See the supplemental material for photos and
further descriptions of this technology (Attachment 3).
--Results that support a new focus on those air toxics that exist on
particles and may be a factor in the claims of increased
mortality from these exposures.
--Initiation of community-based studies that involve participation by
those citizens directly exposed to urban levels of air toxics.
This includes early data from NUATRC's involvement in the
National Health and Nutrition Examination Survey (NHANES).
We owe these advances in large part to the work of our Scientific
Advisory Panel, made up of world class scientists from the public
(EPA), private and academic sectors, who have spent considerable time
and effort to develop and refine these studies in a collegial and
efficient manner. We also are fortunate to have had the encouragement
of this body, which has consistently supported the NUATRC with annual
appropriations in the EPA budget, without which we would not be able to
continue.
We continue to work closely with the EPA, through which we access
the Congressionally-appropriated funds. We have an excellent working
relationship with the EPA scientists that serve on our research panels,
and we are continuing to interact with their administrative
counterparts to establish a firmer base for our EPA financial support.
CURRENT ACTIVITIES
The NUATRC has been very active on its air toxics research
initiatives. One of these initiatives addresses the national concerns
about asthma. The NUATRC's initiative seeks to determine whether air
toxics play a major role in the exacerbation of asthma, which is a
multi-faceted, complex, and increasing public health issue especially
among the minority and underserved populations. The NUATRC has had
several discussions with the scientific staff at the National
Institutes of Environmental Health Sciences (NIEHS) to understand how
we can best leverage our experience in personal exposure assessment
with the NIEHS' well known expertise in public health effects. We are
hopeful of developing considerable support in 2003-2004 for joint
NUATRC-NIEHS programs on urban air toxics and asthma exacerbation.
To further understand asthma the NUATRC has begun receiving
preliminary results from the NUATRC sponsored research program on
children's asthma and the effects, if any, that result from exposures
to air toxics. The pilot study is entitled ``Oxygenated Urban Air
Toxics and Asthma Variability in Middle School Children: A Panel
Study'' or Air Toxics and Asthma in Children (ATAC). We expect that
this study will be completed in 2004. Aside from generating important
health data in Houston, it will help define the cost and scope of any
national study of this kind, similar to what we are discussing with
NIEHS. Our ability to discern specific personal exposures to those air
toxics that are thought to play a role in asthma exacerbation will
allow us to pinpoint and separate those effects from the many urban
confounders that often mask the important factors in the spread of this
disease. We have relied on scientific input from our expert Panel and
submit all proposals to external peer-review. This process has led us
to select a team of physician/scientists from major medical research
institutions at the Texas Medical Center. Specifically, NUATRC has
selected an excellent interdisciplinary research team whose members
represent Baylor College of Medicine, The University of Texas School of
Public Health and Texas Children's Hospital to carry out this work with
asthmatic middle school children in the Houston area. This research is
supported by EPA funding, funding from local government, and private
sector contributions. We are hopeful that the success of this program
will lead to NIEHS involvement in a wider ranging study of asthma and
air toxics with a national focus, and part of our appropriations
request is for leveraging the NIEHS support.
In addition to funding research, publication of research findings
is a NUATRC goal. Our priority is to support research leading to peer-
reviewed publications. A list of the NUATRC's publications is presented
in Attachment 4. Another NUATRC goal is the participation in or hosting
of an annual Workshop or Symposia. In 2004, NUATRC will sponsor a
workshop or symposium on ``Association Between Microenvironments and
Levels of Air Toxics from Personal and Biological Monitoring''.
RESEARCH FINDINGS TO DATE
In 2004, NUATRC will continue research efforts to better understand
the personal exposures of people living in urban areas to a number of
the 188 air toxics defined in the Clean Air Act. However, NUATRC is
also beginning to receive data from our new health effects studies, an
emphasis area on which we will continue to focus in 2004.
From our earlier exposure studies we have achieved pioneering
accomplishments in measuring levels of personal exposures to toxic air
pollutants. These studies in New York, New Jersey, Los Angeles and
Houston have ended. We anticipate the final report shortly and that the
information generated will be reported at a number of major scientific
meetings, and published, during the next 12 months. The investigators
at Columbia University, EOHSI in New Jersey and The University of Texas
have obtained massive amount of important data which will be the
subject of many analyses and publications over the next several years.
These data point conclusively to the importance of personal exposures
in terms of assessing the actual public health risk from air toxics.
In Attachment 5 to this submission, we provide examples of the kind
of information we are obtaining, which suggests that the nation's
environmental resources need to be focused on personal situations, as
opposed to a continuing emphasis on fixed site urban air monitors.
These fixed site monitors, which play a key role in determining
overall urban air quality and air quality standard attainment, are not
numerous enough or precise enough to address public health risks. The
support we have received from this Subcommittee has been instrumental
in creating a new scientific emphasis on personal exposure measurement.
The EPA has now accepted the importance of such approaches and is
instituting its own program in this area.
The NUATRC research programs at Harvard and Washington State
University are focused on the air toxic component of fine particles,
notably metals, in terms of possible effects on peoples' heart rate and
pulmonary functions when exposed to fine particles. These
epidemiological studies also allow us to better define future research,
which will combine personal exposure measurements, the apportionment of
source contributions and the health effects end points, as are being
developed in this work at Harvard and Washington State. Of course, the
NUATRC's pilot asthma studies will be a major advance in the public
health science area.
We have also expanded our involvement in community-based
environmental health research, which is an important element in our
charge, as air toxics health effects can be expected to
disproportionately impact the economically and medically underserved
people in our urban populations. Through our Small Grants Program we
have recently completed research underway in Baltimore under a Johns
Hopkins University research grant to address exposures to air toxics in
a residential community in close proximity to an industrial complex.
This research also has met the goal of keeping the community informed
as to the results of our studies, which is all too often ignored or
neglected in our haste to complete studies and submit them for
publication. We have a somewhat similarly-intentioned program in
progress at the University of Illinois at Chicago, which deals with the
levels of polycyclic aromatic hydrocarbons (PAH) in indoor
environments.
ADMINISTRATION
The NUATRC operates with an efficient administrative staff of five
full-time and one part-time equivalent staff, one consultant, and
important administrative support from The University of Texas Health
Science Center at Houston (UTHSC). Our staff is employed by UTHSC,
which obviates the need for considerable personnel support services and
allows us the benefit of residence a world class health science center,
while remaining an independent institution. This provides important
scientific and administrative benefits, including access to the Medical
School and School of Public Health faculty. We are extremely conscious
of and pleased to call attention to our ratio of monies spent directly
on research compared to administrative costs, and we will continue to
leverage of our research funds.
2004 BUDGET RATIONALIZATION
For 2004 the NUATRC will support several categories for individual
research studies. The research category budgets are shown in the budget
table below. First, the NUATRC will continue to fund asthma and air
toxics research in 2004. NUATRC's pilot asthma work (ATAC) is planned
to be expanded to a national study with NIEHS, which we will cost share
with NIEHS and/or other interested participants. NUATRC has recently
completed several data rich urban air toxics research studies. For 2004
NUATRC plans to offer additional data analysis and interpretation RFA's
to the scientific community to ``mine'' this rich, complex, and deep
data base. The particle personal cascade impactor and pump development
has been completed. Funding in this category for 2004 will also be used
to fund the use of both in research studies. We also would continue our
involvement with the NHANES program run by the National Center for
Health Statistics, in which our participation is highly leveraged. The
evaluation of Perinatal Health Effects of Air Toxics is an emerging and
important area of research. For 2004, at the direction of NUATRC's SAP,
NUATRC plans the development and release of an RFA to assess the
status, scope, and direction of this research area. Current NUATRC
sponsored Health Effects Research has shown results on the effects of
air toxic exposures on human respiratory functions and is planned to
continue with new studies for 2004. The Small Grants Program has been a
successful, cost effective program for NUATRC in terms of
identification of emerging research areas and publications in the peer-
reviewed literature. We will continue this program in 2004. The
emphasis we place on having Workshops and/or Symposia every year has
proven cost-effective in advancing the understanding of air toxics
health effects. With 2004 funding we will continue to support an annual
Workshop or Symposium. The Research Support category is essential to
provide funds for scientific peer-review, publications, reports,
additional scientific research, quality assurance and other activities
recommended by the SAP and approved by the Board. This budget also
serves an important strategic research function for the entire NUATRC
program. The total budget shown below is an effort recognizing current
budget pressures. However; the budget presented below also capitalizes
on the legacy investment in research already made by providing
resources to fully analyze and capture the knowledge inherent in the
study results in time for answers to regulatory and scientific
questions. We will continue, as noted elsewhere, to seek supplemental
funding sources for our research program. We are encouraged with the
interest in our research program by non-federal funding sources. For
the first time in the NUATRC's history we have received project
specific funding commitments from Harris County, Texas and the Houston
Regional Monitoring Corporation. We are also encouraged by the
contributions of several private companies such as ExxonMobil, Rohm and
Haas, Inc., and Shell Oil Foundation (and 7 other organizations) as
contributors the NUATRC's research program.
Fiscal Year 2004 Budget
------------------------------------------------------------------------
------------------------------------------------------------------------
Asthma Studies/Air Toxics Research...................... $450,000
Perinatal Health Effects of Air Toxics Research......... 300,000
Data Analysis, Interpretation, and Presentation 250,000
(``Mining'')...........................................
Health Effects Research................................. 150,000
Small Grants............................................ 300,000
Workshops, Symposia..................................... 50,000
Research Support........................................ 100,000
Administration.......................................... 900,000
---------------
Total............................................. 2,500,000
------------------------------------------------------------------------
______
PREPARED STATEMENT OF PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS
(PETA)
People for the Ethical Treatment of Animals (PETA) is the world's
largest animal rights organization, with more than 750,000 members and
supporters. We greatly appreciate this opportunity to submit testimony
regarding the fiscal year 2004 appropriations for the Environmental
Protection Agency (EPA). Our testimony will focus on chemical tests
allowed or required by the EPA to be conducted on animals.
As you may know, the EPA requires substances such as pesticides,
industrial chemicals, and others to be tested for, among many other
hazards, their rates of skin corrosion, skin absorption, and skin
irritation. Traditionally, these particular tests have involved
smearing chemicals on animals' shaved backs, often causing effects
ranging from swelling and painful lesions to wounds where the skin is
totally burned through.
Fortunately, there are non-animal test methods that are just as
effective, if not more so, for these three endpoints. ``Human skin
equivalent'' tests such as EpiDermTM and
EpiSkinTM have been scientifically validated and accepted in
Canada, the European Union, and by the Organization for Economic
Cooperation and Development (OECD), of which the United States is a key
member, as total replacements for animal-based skin corrosion studies.
Another non-animal method, CorrositexTM, has been approved
by the U.S. Interagency Coordinating Committee on the Validation of
Alternative Methods. Various tissue-based methods have been accepted in
Europe as total replacements for skin absorption studies in living
animals. In fact, in 1999 the EPA itself published a proposed rule for
skin absorption testing using a non-animal method that has never been
finalized. Government regulators in Canada accept the use of a skin-
patch test in human volunteers as a replacement for animal-based skin
irritation studies (for non-corrosive substances free of other harmful
properties).
However, the EPA continues to require the use of animals for all
three of these endpoints, despite the availability of the non-animal
tests.\1\
---------------------------------------------------------------------------
\1\ The EPA may allow the use of EpiDermTM, however it
will apparently require confirmatory testing on animals of any negative
non-animal test results. This sets an unjustified precedent of
requiring confirmatory testing of validated non-animal tests with non-
validated animal tests.
---------------------------------------------------------------------------
In fiscal year 2002, the subcommittee allocated the first-ever
appropriation for the EPA to research, develop, and validate non-animal
methods. The appropriation was in the amount of $4,000,000 and was to
be used for ``non-animal, alternative chemical screening and
prioritization methods, such as rapid, non-animal screens and
Quantitative Structure Activity Relationships.'' However, to date, the
EPA has refused to provide a detailed accounting of how this
appropriation was spent and exactly what non-animal testing methods
received these funds.
We respectfully request that the subcommittee include report
language ensuring that no funds for the EPA (including salaries or
expenses of personnel) may be used for the purpose of assessing data
from an animal-based test method when a non-animal test for the desired
endpoint has been validated and/or accepted by the OECD or its member
countries. We also request that $5 million from the current budget
request be set aside for the research, development, and validation of
non-animal test methods, and that the EPA be required to report to
Congress on how these funds are spent.
ANIMAL TESTS CAUSE IMMENSE SUFFERING
Traditionally, the degree to which corrosive materials are
hazardous has been measured by the very crude and cruel method of
shaving rabbits' backs and applying the test substance to the animals'
abraded skin for a period of hours. As one can imagine, when highly
corrosive substances are applied to the backs of these animals, the
pain is excruciating. In skin absorption tests, the rate at which a
chemical is able to penetrate the skin is measured by shaving the backs
of rats and smearing the substance on them for an exposure period of up
to 24 hours. They are eventually killed, and their skin, blood, and
excrement are analyzed. A similar method is used to test for skin
irritation, except the unfortunate subjects are again rabbits, who are
locked in full-body restraints. A test chemical is applied to their
shaved backs, and the wound site is then covered with a gauze patch for
normally four hours. A chemical is considered to be an irritant if it
causes reversible skin lesions or other clinical signs, which heal
partially or totally by the end of a 14-day period. Animals used in the
above tests are not given any painkillers.
THESE TESTS HAVE NEVER BEEN PROVEN TO BE RELEVANT TO HUMANS
None of the animal tests currently used for skin corrosion,
absorption, or irritation has ever been scientifically validated for
its reliability or relevance to human health effects. Animal studies
yield highly variable data and are often poor predictors of human
reactions. For example, one study, which compared the results of rabbit
skin irritation tests with real-world human exposure information for 65
chemicals, found that the animal test was wrong nearly half (45
percent) of the time in its prediction of a chemical's skin damaging
potential (Food & Chemical Toxicology, Vol. 40, pp. 573-92, 2002).
VALIDATED METHODS EXIST WHICH DO NOT HARM ANIMALS
Fortunately, test methods have been found to accurately predict
skin corrosion, absorption, and irritation.
EpiDermTM and EpiSkinTM are test systems
comprised of human-derived skin cells, which have been cultured to form
a multi-layered model of human skin. The CorrositexTM
testing system consists of a glass vial filled with a chemical
detection fluid capped by a membrane, which is designed to mimic the
effect of corrosives on living skin. As soon as the corrosive sample
destroys this membrane, the fluid below changes color or texture.
For skin absorption tests, the absorption rate of a chemical
through the skin can be measured using skin from a variety of sources
(e.g. human cadavers). The reliability and relevance of these in vitro
methods have been thoroughly established through a number of
international expert reviews, and have been codified and accepted as an
official test guideline of the OECD.
Instead of animal-based skin irritation studies, government
regulators in Canada accept the use of a skin-patch test using human
volunteers. (The chemical is first determined to be non-corrosive and
free of other harmful properties before being considered for human
studies.)
NON-ANIMAL TEST METHODS CAN SAVE TIME, MONEY, AND YIELD MORE USEFUL
RESULTS
Unlike animal testing that can take two to four weeks,
CorrositexTM testing can provide a classification
determination in as little as three minutes and no longer than four
hours.
Tissue culture methods to test for skin absorption allow
researchers to study a broader range of doses, including those at the
actual level of exposure that occurs in the occupational or ambient
environment, which is not possible with the animal-based method.
Many non-animal methods can yield results with greater sensitivity
and at a lower cost than animal-based methods. Protocols are more
easily standardized, and the variations among strains and species are
no longer a factor.
THE EPA CONTINUES TO REQUIRE THE USE OF ANIMALS
Despite the ethical, financial, efficiency, and scientific
advantages of the above non-animal methods, the EPA continues to
require and accept the unnecessary use of animals in tests for skin
corrosion, absorption, and irritation.
SUMMARY
Non-animal methods are available now to replace animal-based
methods to test substances for skin corrosion, absorption, and
irritation. There simply is no excuse for continuing to cause animals
to suffer when non-animal tests are available.
We therefore hereby request, on behalf of all Americans who care
about the suffering of animals in toxicity tests, that you please
include language in the report accompanying the fiscal year 2004 VA,
HUD and Independent Agencies Appropriations bill stating that:
--no funds for the EPA (including salaries or expenses of personnel)
may be used for the purpose of assessing data from an animal-
based test method when a non-animal test for the desired
endpoint has been validated and/or accepted by the OECD or its
member countries;
--an allocation in the amount of $5 million of the EPA's research
budget be directed toward the research, development, and
validation of non-animal test methods; and
--the EPA must report to the Subcommittee by April 30, 2004,
providing a detailed accounting of how the above allocation is
spent.
Thank you for your consideration of our request.
______
PREPARED STATEMENT OF THE JOSLIN DIABETES CENTER
INTRODUCTION
Mr. Chairman, thank you for this opportunity to provide a status
report on the Diabetes Project conducted jointly by the Joslin Diabetes
Center in Boston, MA and the Department of Veterans Affairs (Medical
Care account), for which you provided $5 million each in the fiscal
year 2001, fiscal year 2002 and the fiscal year 2003 Appropriations
Acts.
Our request for fiscal year 2004 to continue this project with the
VA is $5 million in the Medical Care account, of which the VA's costs
represent approximately 50 percent. I am Dr. Sven Bursell, Principal
Investigator of the project and Associate Professor of Medicine at the
Harvard Medical School.
BACKGROUND
Joslin Diabetes Center has been involved with the Department of
Defense and the Department of Veterans Affairs in a pilot demonstration
project for the advanced detection, prevention, and care of diabetes.
The Joslin Vision Network (JVN) has been deployed in VA sites in VISN
21 in Hawaii (Honolulu, Hilo and Maui), VISN 1 in New England (Boston,
Brockton in Massachusetts, and Togus, Maine) and VISN 19/20 (Seattle
and Tricities in Washington, Anchorage in Alaska and Billings in
Montana). The JVN employs telemedicine technology to image the retina,
through an undilated pupil, of patients with diabetes, and produces a
digital video image that is readable in multiple formats.
This project was funded initially through the Department of Defense
Appropriations Act. The Department of Veterans Affairs medical staff
was eager to expedite the deployment of this advanced diabetes
technology beyond the limited resources available through participation
in the DOD funded project. We petitioned this Subcommittee for
additional resources to be made available to the VA for discretionary
diabetes detection and care.
This Committee provided $2 million in fiscal year 2000 and $5
million each in fiscal year 2001, fiscal year 2002 and fiscal year 2003
for expansion of this project within the VA. The VA has indicated a
desire to continue expansion, citing the JVN as the model of the future
telemedicine in a recent conference of the Association of Military
Surgeons-General of the US (AMSUS). We are seeking $5 million to
continue this expansion, and are supported by the VA medical policy
staff.
The leadership shown by this Subcommittee has enabled the VA to
provide its patient population the best diabetes care, prevention, and
detection in the world. We extend our sincere appreciation to you for
your response to that request.
FISCAL YEAR 2002 AND FISCAL YEAR 2003 ACTIVITIES
The policy and program officials of the VA have established the
appropriate contracts and statements of work that resulted in consensus
with respect to deployment of the Joslin Vision Network (JVN)
technology to three sites: Anchorage, Alaska, TriCities, Washington,
and Billings, Montana. A Reading Center will be created and utilized in
Seattle, Washington. In addition, the refinement of JVN technology,
both hardware and software, will move toward developing a scalable
system that is capable of widespread deployment agency-wide. This
system was completed and it is anticipated that this next generation of
the system will be completely integrated into the VA's VISTA Medical
Records System and the VA communications infrastructure.
Results from our various demonstration installations have shown
that appropriate clinical resources can be efficiently allocated with
respect to appropriate ophthalmology referral. For example, the
installation in Togus, Maine where there is no ophthalmology resources
on site has shown that the use of the JVN system can effectively
prioritize patients that need to be seen by the opthalmologist at the
time when the ophthalmologist plans to visit that clinic. This site is
imaging approximately 10 patients per day and they find the JVN program
extremely resource efficient in providing the appropriate eye care to
their patients.
The same experience was noted from the VA clinics in Hilo and Maui
where the Optometrist from the Honolulu VA visits these island clinics
once a month and was able to effectively focus his time on the patients
that really needed his expertise for managing their diabetes eye
complications.
Results from a recently completed cost efficiency study using the
VA diabetic patient population showed that the use of the JVN system
was both less costly and more effective for detecting diabetic
retinopathy than traditional dilated eye examination performed by a
retinal specialist. Additionally, data showed that the JVN system was
both less costly and more effective for preventing severe visual loss
in VA diabetic patients compared to traditional ophthalmoscopy.
An equally important concentration of resources in fiscal year
2001-2003 was focused on refining the technical core using outcomes
based medical and case management scenarios to develop a diabetes
healthcare model that is modular, customizable and that can be
seamlessly integrated into the existing VA telemedicine systems. This
is the stated goal of the medical leadership in the VA, DOD and HIS
health care systems. The overarching vision for the VA/JVN project is a
web-based comprehensive diabetes health care system that can be
interactively used by both patients and providers, that incorporates
diagnosis specific education and training modules for patients and
providers and that incorporates software applications that allow
outcome measures to be statistically assessed and individual treatment
programs to be interactively adjusted based on these outcome measures.
The JVN Eye Health care system exists as a component of a comprehensive
diabetes management system, incorporating other clinical disciplines
such as endocrinology, vascular surgery and internal medicine.
FISCAL YEAR 2002-2003 GOALS
The use of the JVN equipment and expansion of screening
opportunities are a continuing major focus for fiscal year 2003
activities. The actual number of sites deployed to will be determined
on the locales with the greatest need for diabetes care in conjunction
with the telecommunications infrastructure at the identified sites and
the ease and costs associated with interfacing the JVN technology into
the existing infrastructure.
We will also develop clinical pathways and protocols to facilitate
access and coordination of care for diabetic patients using mobile JVN
systems. The goal is to access diabetic patients from smaller Community
Based Outpatient Clinics (CBOC) where specialty eye care is not
available and where performance with respect to accessing diabetic
patients for eye care falls below the performance standards set by the
VA.
We have expended considerable effort in migrating the JVN
demonstration technology platform into an application that is totally
compliant with existing medical informatics infrastructures and the
existing VISTA infrastructure of the VA system. This will encompass the
integration of hardware and software in close collaboration with
available resources from the VA VISTA program that will allow a highly
scaleable transparent integration of the JVN Diabetes Eye Health Care
system into the existing health informatics infrastructures of the VA
system.
For the fiscal year 2002-2003 project phase, we have established
the following tasks, targets, and activities:
--Deployment of fixed site and mobile units of a viable, sustainable,
and refined operating JVN Diabetes Eye Health Care model and
Comprehensive Diabetes Management program.
--Develop a modularized medical outcomes based telemedicine diabetes
management program in continued collaboration with the VA with
outcome measures incorporated into software based on clinical
results and research experiences of the fiscal year 2001
efforts.
--Develop curriculum based patient and provider educational modules.
--Integrate internet based portals that are accessed by patients for
reporting of glucose values and receiving feedback with respect
to goals for self management of their diabetes and adjustments
of their treatment plans based on these goals. These portals
will also provide regular education modules for the patients
that are customized to their particular needs and clinical
diabetes risk assessment.
The effort for fiscal year 2003 will result in the development of
modular applications associated with different aspects of total
diabetes disease management such as clinical risk assessment, outcomes
assessments, behavior modification in an interactive electronic
environment, and education programs. These applications will be
designed in collaboration with participating VA sites to provide an
ultimate product that appropriately assesses the clinical diabetes risk
and provides treatment plans and behavior modifications that are
tailored to any particular patients needs. The programs will also be
designed so that they can realize a significant cost and resource
efficiency with respect to support and maintenance of the JVN component
and the diabetes management programs that will facilitate an
accelerated deployment in the future.
Technologically, we will be providing an application that
automatically detects retinal pathology from the JVN images. Using this
first step approach it is anticipated that we can reduce the load on
the reading center by as much as 50 percent. This is achieved through
the use of a computer application that scans the images and detects any
abnormalities that may be associated with the development of diabetic
retinopathy. In those cases where the computer detects pathology a
reader will be notified to perform the appropriate reading for
retinopathy assessment. In the case where the computer does not detect
any pathology the patient can be assigned to a low risk priority where
the computer findings can be rapidly confirmed by the reader and the
patient asked to return for repeat JVN imaging in a year.
FISCAL YEAR 2004 REQUEST
For fiscal year 2004, we request that in the VA Medical Account $5
million be allocated to continue and expand this project. The positive
response within the VA system indicates that with sufficient resources,
the JVN technology would be deployed in a number of sites with the
ultimate goal of incorporating the JVN technology throughout the VA
Medical Care system. The VA Budget Request by the fiscal year 2005
cycle will include provisions for full deployment for the JVN
throughout the VA Medical Care system. As the technology, systems and
production of equipment are standardized to off the shelf
specifications, the expense per site will decrease.
The specific goals for fiscal year 2004 include the following:
--Establish specific medical codes that will allow the VA to track
performance with respect to these JVN examinations and to
ensure that it conforms with VA performance criteria in
multiple remote VA outpatient settings;
--Improve adherence to scientifically proven standards of diabetes
eye care and diabetes care;
--Improve/promote access to diabetes eye care;
--Increase number/percentage of patients with Diabetes Mellitus
obtaining eye care;
--Provide education patients and providers in the clinical setting.
CONCLUSION
We request continuation and maintenance of this Committee's policy
of support for the improvement of the diabetes care in the VA medical
system. Through funding of This $5 million request, the benefits by the
close of fiscal year 2004 will include:
--Deployment of JVN detection and care at 5 different VA centers
where each center will provide services for 6 different remote
sites for a total 35 sites.
--JVN accessibility to increase VA capability to achieve patient
compliance to eye examinations to at least 95 percent of the
diabetic patient population in any area being serviced. From an
estimate of the VA diabetic patient population we would
estimate that the JVN would be accessing an estimated patient
population of 196,000, or an estimated 11 percent of the total
VA Diabetic population after completing anticipated 2002
deployments.
--The model for VA's deployment of the JVN as a diabetes detection
and Disease management platform for expansion to availability
for the entire VA Patient population.
Thank you for this opportunity to present this request for $5
million for fiscal year 2004 and status report for fiscal year 2003 on
a medical technology breakthrough for the patients and health care
system within the Department of Veterans Affairs.
______
PREPARED STATEMENT OF THE CONSORTIUM OF SOCIAL SCIENCE ASSOCIATIONS
(COSSA)
Mr. Chairman and Members of the Subcommittee, the Consortium of
Social Science Associations (COSSA) represents over 100 professional
associations, scientific societies, universities and research
institutes concerned with the promotion of and funding for research in
the social, behavioral and economic sciences (SBE). COSSA functions as
a bridge between the research world and the Washington community. A
list of COSSA's Members, Affiliates, and Contributors is attached. We
appreciate the opportunity to comment on the spending request for
fiscal year 2004 for the National Science Foundation.
COSSA appreciates the Subcommittee's past strong support for NSF,
particularly last year's substantial budgetary increase. COSSA is well
aware that each year you confront difficult choices among competing
agencies under the Subcommittee's jurisdiction. COSSA is delighted that
the Subcommittee leadership has expressed that NSF will remain a
significant priority for them.
COSSA strongly believes that investing in NSF's research and
education efforts will help determine this country's future economic
well-being and national security. Therefore, COSSA finds the
administration's proposal for a $171 million increase for NSF in fiscal
year 2004 totally inadequate. In agreement with the Coalition for
National Science Funding, the Subcommittee's leadership, and the NSF
reauthorization bill, COSSA strongly supports doubling the NSF budget
over the next five years. The Coalition for National Science Funding
(CNSF), in congruence with the reauthorization legislation, recommends
a fiscal year 2004 budget for NSF of $6.391 billion. COSSA endorses
this recommendation. This budget enhancement will return many-fold its
value in economic growth, help save lives, promote prosperity, and
improve society, and provide more excellent science from more excellent
scientists.
Over the past half century science has been the engine that has
driven the nation's economic success and quality of life improvements.
Fundamental university-based science has delivered the great
technological advances that have provided for new methods and products
that have advanced our nation forward. These include: geographic
information systems, World Wide Web search engines, automatic heart
defibrillators, product bar codes, computer aided modeling, retinal
implants, optical fibers, magnetic resonance imaging, and composite
materials used in aircraft.
A substantial increase for NSF in fiscal year 2004 will forge great
advances in the 21st Century. A much larger than proposed budget
enhancement would allow NSF a much-needed boost for the size and
duration of its research and education grants. It would also lead to
improving the scientific literacy of the nation's students and general
population. As our business leaders understand, without improvements in
education and training and new innovations and scientific findings,
growth will stall. NSF needs a significant influx of new funds.
THE FISCAL YEAR 2004 BUDGET AND THE SOCIAL, BEHAVIORAL AND ECONOMIC
SCIENCES (SBE)
COSSA also believes the small 1.2 percent increase proposed for the
Research and Related Activities Account is dismal. The reauthorization
bill calls for a fiscal year 2004 amount of $4.8 billion for R&RA and
COSSA strongly endorses that figure.
For the Social, Behavioral and Economic Sciences Directorate (SBE),
the administration proposes $211 million for fiscal year 2004. The
final fiscal year 2003 appropriation for SBE was $191 million. With
some restored funding for the Science, Resources, and Statistics
division the SBE current plan is $195.6 million. Although the proposed
increase from fiscal year 2003 to fiscal year 2004 is 8.2 percent,
seemingly larger than most of the other directorates, in absolute terms
this is only $16 million, quite smaller than almost all of the other
directorates. For the two research divisions the increase is only $12.1
million. Another thing to keep in mind is that NSF provides almost one-
half of federal support for basic research for these sciences. For some
fields in the SBE sciences, NSF is the only source of federal support
for basic research and infrastructure development.
The Social, Behavioral and Economic (SBE) Sciences are poised and
ready to make significant discoveries in the future. Improvements in
computer computation, computer communication, and the rapid increases
in multidisciplinary scientific endeavors make the old model of these
sciences as ``cottage industries'' a difficult one to sustain any more.
Collaborations, collaboratories, merged databases, functional MRIs, and
virtual centers are the future of SBE research.
Recognizing this, NSF has proposed a Foundation-wide priority
called Human and Social Dynamics (HSD) in the fiscal year 2004 budget.
This priority area has been developed and discussed with the SBE
community for over three years. Begun with $10 million in seed money in
fiscal year 2003, HSD has a proposed budget of $24.5 million in fiscal
year 2004, about two-thirds of which is from the SBE proposed budget.
The priority area seeks to understand change: its causes and
ramifications, how to anticipate it, how the human mind and social
structures create it, and how people and organizations manage it. These
questions will be investigated using multidisciplinary approaches with
already existing sophisticated research techniques as well as providing
support for the development of improved tools for future
investigations.
For fiscal year 2004 areas of emphasis include: 1) enhancing human
performance on the individual and organizational levels; 2)
understanding decision-making under uncertainty; 3) comprehending
agents of change, particularly in large scale transformations, such as
globalization and democratization; 4) analyzing and modeling various
aspects of HSD, including complex networks such as terrorism; 5)
improving and using spatial social science techniques to explore HSD
topics; and 6) developing and supporting instrumentation and data
resources such as cognitive neuroimaging and longitudinal surveys to
upgrade the measurement and analysis of information from diverse
sources. COSSA strongly supports the implementation of the priority and
its increased funding.
In addition to the priority area, the NSF budget includes $20
million for a second year of funding for Science of Leaning Centers.
The SBE sciences are in the forefront of providing research and
evidence for improving how our children learn and survive in the
modern, complex societies in which we live. Fundamental research by
developmental psychologists, cognitive scientists, sociologists, and
economists, has revealed a wealth of data about how children think and
learn and how these processes are mediated by family demographics,
community politics, and the structure of the schools. COSSA strongly
supports the continued funding of the Science and Learning Centers.
Furthermore, increased support will enhance funding for research in
the learning and developmental sciences to integrate studies of
cognitive, linguistic, social, cultural, and biological processes
related to children and adolescent learning. This support will include
research funded under the Children's Research Initiative (CRI). We
appreciate the Committee's willingness to ensure that the CRI remains
an open competition where the merit review process is allowed to work
unhindered by any attempts at privileging certain institutions.
COSSA also strongly supports the funding for research on the
ethical, legal, and social consequences of technological change. Both
the Information Technology and Research area and the Nanoscale Science
and Engineering area include funding to answer important questions on
how the results of this cutting-edge research will impact humans and
society. From increasing privacy concerns, to the ethics of genetic
testing, to how we relate in Web based communities, to how our
political system works, SBE scientists are exploring many aspects of
this issue.
It is also clear that the NSF's new emphasis on Environmental
Research and Education provides exciting opportunities for the SBE
sciences. The recent report: Complex Environmental Systems: Synthesis
for Earth, Life, and Society in the 21st Century, outlines a research
agenda that includes Coupled Human and Natural Systems as a key area.
This area integrates population, ecosystems and socioeconomic models to
understand and enable response to issues such as landscape
fragmentation, spread of pathogens and water resources. SBE will also
fund centers focusing on Risk Analysis and Decision-making on global
climate change.
SBE continues to maintain support for major long-term data bases
such as the Panel Study on Income Dynamics, the General Social Survey,
and the American National Election Studies. These three data series
paint a portrait of American's attitudes and behavior over almost 40
years. In addition, SBE is providing support for the National
Historical Geographic Information System, which will provide free
public access to U.S. Census databases from 1790 to the present. By
digitizing the data, place-specific information can be utilized by
geographic information systems.
Research in the SBE sciences continues to examine the ever more
complex and important human dimensions of issues and generates new
knowledge and insights to help us understand human commonalities and
human differences. Basic research in these disciplines also develops
information that policymakers can use later to formulate solutions to
individual and societal problems. The research portfolio is diverse and
supports science of enormous intellectual excitement and substantial
societal importance. It deserves enhanced resources.
The Science, Resources and Statistics (SRS) division is an
important resource for the whole Foundation and for the entire science
and engineering community. The high quality data it provides to
researchers and policymakers about the science and technology
enterprise merits generous support. The redesign of its survey samples
to reflect the changes discovered in the 2000 Census explain the large
jump from fiscal year 2002 to fiscal year 2003. As SRS continues to
improve its products its support should be increased.
OTHER ISSUES
COSSA supports the increased funding proposed for the Graduate
Fellowship programs. Raising the stipend to $30,000 will attract more
excellent students into graduate study in all the sciences. The
enhanced stipends should not occur with a corresponding reduction in
the number of these prestigious, portable, student-controlled
fellowships for graduate training.
COSSA also strongly supports continuation of the Interagency
Education Research Initiative (IERI), a collaboration among the NSF,
Department of Education, and the National Institute of Child Health and
Human Development. The IERI provides significant support over a period
of time to conduct meaningful studies of factors affecting student
achievement and to seek and disseminate answers to how we can improve.
CONCLUSION
COSSA urges the Subcommittee to significantly boost support for the
National Science Foundation in fiscal year 2004. NSF will then provide
the fundamental research that will help the world stay healthy,
prosperous, and secure. In addition, with increased funding the Social,
Behavioral and Economic Sciences Directorate can support basic research
in these disciplines to help meet the needs of this country and the
world for evidence-based policies to work on the complex problems
affecting us all.
Thank you for the opportunity to present our views.
______
PREPARED STATEMENT OF THE AMERICAN CHEMICAL SOCIETY
The American Chemical Society (ACS) would like to thank Chairman
Christopher Bond and Ranking Member Barbara Mikulski for the
opportunity to submit testimony for the record on the VA, HUD and
Independent Agencies Appropriations bill for fiscal year 2004.
ACS is a non-profit scientific and educational organization,
chartered by Congress, representing more than 160,000 individual
chemical scientists and engineers. The world's largest scientific
society, ACS advances the chemical enterprise, increases public
understanding of chemistry, and brings its expertise to bear on state
and national matters.
The ACS would like to thank the members of the Subcommittee for
strong and continued support for investment in NSF. We understand the
difficult choices that must be made in drafting the VA-HUD bill,
particularly in this time of worsening deficits. We commend the
Subcommittee for taking the long view and providing a notable increase
for NSF in fiscal year 2003.
In developing the fiscal year 2004 NSF budget, we believe the
subcommittee has an excellent guide. The NSF authorization law that
President Bush signed in December sets out sound program directions for
NSF and calls for an investment of $6.4 billion for the Foundation in
fiscal 2004. We respectfully ask the subcommittee to support this level
during markup of the bill.
NSF has earned strong bipartisan support for advancing new
discoveries, industries, and the work of countless scientists and
engineers--including most Nobel laureates in science. As the only
agency devoted to supporting basic research and education across all
scientific fields, NSF is critical to continued progress in all areas
of science and engineering. Support for the best ideas and new
frontiers across core disciplines has been the hallmark of NSF and the
backbone our research system. We believe renewed support for core
disciplinary research is essential to address unmet needs and to
sustain NSF's support for high quality, high-risk research. This
investment is also essential in promoting the success of
multidisciplinary initiatives such as information technology and
nanotechnology--areas ripe for scientific progress to benefit society.
On April 8th, an article in the New York Times highlighted the
enormous potential benefits of nanotechnology research to our military
and other national needs. It emphasized the importance of federal
funding in this area, which is led by DOD, NSF, and other agencies. The
article noted ``nearly 25,000 graduates in Asian countries received
doctoral degrees in engineering fields related to nanotechnology in
2000, compared with fewer than 5,000 in the U.S.'' A senior Pentagon
official was quoted as saying that ``nanotechnology will eventually
alter warfare more than the invention of gunpowder.''
We also encourage the subcommittee to grow NSF's budget to help
address the need for renewed federal investment in physical sciences
and engineering research, which has lagged over the last decade.
President Bush's top science and technology advisory council, the Hart-
Rudman Commission on National Security, and many other groups have
called for boosting federal investment in this area given its central
role in advancing our economic, energy, and homeland security. One need
only look at the current reliance of our troops on technology to know
that our long-term national security depends on scientific advances. We
commend the House and Senate Appropriations Committees for recognizing
this need in the fiscal year 2003 omnibus appropriations bill. While
the administration did emphasize physical sciences research at NSF in
its budget, the request unfortunately would not translate into notable
increases over the enacted fiscal year 2003 level.
NSF is very important to transforming scientific knowledge into
economic value. NSF investments are critical to productivity in many
sectors, including chemicals, electronics, communications, and
biotechnology. While the avid support for NSF among our academic
members may not come as a surprise, it is often our industrial
members--who make up 60 percent of ACS--who speak most passionately
about the importance of NSF. They understand the key role of basic NSF
research in enabling industrial innovation, productivity growth, and
the training of the next generation of scientists and engineers.
Sustaining America's global technological and economic leadership
demands improvements in science and engineering education at all
levels. It is alarming that the nation's growing workforce demand is
coming at a time of declining science achievement by high school
students and while decreasing numbers of students are earning science
and engineering degrees. NSF's research and education programs are
essential to improving science education at the precollege,
undergraduate, and graduate levels and in expanding opportunities for
students to pursue and remain in science and engineering programs at
universities. The Foundation's Education and Human Resources (EHR)
division plays a critical role in this effort.
Precollege Education.--With an emphasis on curriculum reform,
assessment, and teacher preparation and professional development, EHR's
precollege programs improve standards-based, inquiry-centered math and
science education across the country. ACS encourages continued support
for NSF's precollege programs to nurture the development of the next
generation of technologically proficient workers. ACS supports the
administration's $200 million request for the Math and Science
Partnership program, which establishes alliances between schools,
colleges and universities, and other stakeholders to improve teacher
quality and student achievement in math and science. Strong funding
will continue to provide effective model programs and strategies to
improve teacher training and curriculum development across the nation.
Underrepresented Groups.--ACS strongly supports NSF efforts to help
cultivate the vast pool of untapped talent among women and
underrepresented minorities. With an emphasis on two-year colleges,
NSF's Advanced Technological Education program promotes science,
technology and mathematics preparation for today's technology-based
workplace. The two-year college system is especially important for
economically disadvantaged students who use it as a point of entry into
higher education. In addition, ACS also supports the Science,
Technology, Engineering and Mathematics Talent Expansion Program, which
provides grants to higher education institutions for initiatives that
increase the number of degrees in these fields. Strategies in this area
have included summer learning, faculty development, research
experiences, scholarships, and partnerships.
Noyce Scholarships.--Since 2002, the Noyce Scholarships have
provided multi-year awards to institutions of higher education to
provide future teachers with scholarships, stipends, and training
toward teacher certification or alternative certification. These
scholarships are an important step in the process of recruiting high
quality science and mathematics teachers to increase American students'
performances in these subjects. The Congress has recognized the value
of the Noyce scholarships by authorizing $20 million annually through
fiscal year 2005, and we support the administration's request for
increased funding in fiscal year 2004.
NSF programs also provide critical support for graduate and post-
doctoral fellowships, which can shorten the time to Ph.D. degree,
increase the participation of underrepresented groups in science and
engineering, and significantly broaden research and training
opportunities. The Graduate Research Fellowship Program provides
support for graduate students pursuing research-based master's or
doctoral degrees in science and engineering. This flagship program
selects and supports the most promising science and engineering
students in the US and provides support for stipends and cost of
education allowances for their graduate education.
As the Subcommittee knows, it takes years to train scientists and
engineers and to develop new technologies to advance our economic and
national security. The fruit of this investment does not ripen
overnight, nor does it come cheaply. Despite fiscal pressures, we hope
the subcommittee will continue to take the long view and fund NSF at a
level more commensurate with the scope and importance of its mission.
One need only look at NSF's low overhead, its renowned peer review
system for determining quality science, and its top management ratings
from OMB to have the utmost confidence that NSF will allocate increases
wisely. NSF is an investment in every sense of the word. And the return
on this investment has been extraordinary by any measure.
______
PREPARED STATEMENT OF THE ASSOCIATION OF AMERICAN UNIVERSITIES
Mr. Chairman and Members of the Subcommittee, I am pleased to have
this opportunity to present to you the views of the Association of
American Universities (AAU) concerning the fiscal year 2004 budget
proposals and matters pertaining the VA, HUD and Independent Agencies
Appropriations Bill.
This year, that AAU is asking for two things of this Subcommittee.
First, AAU strongly urges the Congress to appropriate funding for the
National Science Foundation (NSF) in fiscal year 2004 at the level
authorized by Public Law 107-368, the NSF Authorization Act of 2002.
Second, AAU urges Congress to support $7.7 billion for National
Aeronautics and Space Administration (NASA) Science, Aeronautics, and
Exploration (SAE) activities, a total increase of $440 million (6.1
percent) over the fiscal year 2003 level. Even though AAU recognizes
that some changes may be made to NASA's fiscal year 2004 request in the
coming months, strong funding of the agency's science programs is still
in the best interest of the nation.
I cannot overstate the importance to our nation's future prosperity
of investment in basic scientific research and in the people who
conduct this research. The innovation that flows from basic research
has fueled the explosion of technological advancements in our lifetimes
and is key to continuing progress. Research in all the physical
sciences is increasingly interdependent, and medical technologies such
as magnetic resonance imagery, ultrasound, and genomic mapping could
not have occurred without underlying knowledge in biology, physics,
mathematics, computer sciences, chemistry and engineering. Significant
future medical advances also require advances in the sciences.
Industries, state governments, and federal laboratories are entering
into partnerships with universities at a rate that multiplies daily
because in a knowledge economy, our economic leadership depends on
ideas we generate. University research is the primary source for these
ideas.
NATIONAL SCIENCE FOUNDATION
NSF is the heart of the federal investment in basic scientific
research. Since its founding in 1950, NSF has had an extraordinary
impact on American scientific discovery and technological innovation.
Despite its size, it is the only federal agency with responsibility for
research and education in all major scientific and engineering fields.
Approximately 95 percent of the agency's total budget directly supports
the actual conduct of research and education, while less than five
percent is spent on administration and management.
In recent years, the NSF has enjoyed strong support from the VA,
HUD and Independent Agencies Subcommittee in both the House and Senate.
In fiscal year 2001, with the Subcommittee's help, Congress provided
the single largest funding increase, in both percentage and dollar
terms, in the history of the NSF. The Congress again substantially
increased funding for the NSF in both fiscal year 2002 and fiscal year
2003. We thank the Subcommittee, and in particular Chairman Bond and
Ranking Member Mikulski, for their critical role in securing these
increases; the university community is enormously grateful for this
support.
The tremendous level of support for NSF was also demonstrated last
year when Congress passed H.R. 4664, The NSF Authorization Act of 2002,
a bill aimed at putting the NSF on a track to double its budget over
five years. This Act (Public Law 107-368), signed into law by President
Bush on December 19, 2002, authorized a maximum funding level for the
NSF in fiscal year 2004 of $6.4 billion. For fiscal year 2004, AAU
endorses the authorized funding level and urges the Congress to
appropriate $6.4 billion in funding for the NSF. This represents a $1.1
billion increase over the fiscal year 2003 level of $5.3 billion. The
President has requested $5.5 billion for NSF in fiscal year 2004.
The AAU would suggest that approximately half of this fiscal year
2004 funding increase be devoted to advancing NSF's core research
programs and priority areas. Of the remainder of our recommended
increase, AAU would urge that approximately two-thirds go to advancing
the Foundation's education and training efforts, and one-third be used
to upgrade and enhance the nation's science and engineering
infrastructure. More specific details concerning how we feel funding
increases should be used are outlined below.
Advance core programs for research.--Presently, 15 to 20 percent of
highly-rated proposals to the NSF are not funded because of inadequate
resources. In some NSF programs, this percentage is even higher. The
Congress should strive to see that all highly-rated NSF proposals are
funded. Had this occurred in fiscal year 2002, 1800 additional
proposals (proposals which while rated as high as the average NSF award
by external reviewers, were declined due to lack of available funding)
would have been awarded requiring an additional $1 billion. Likewise,
grant size and duration should be increased. Increasing the size and
time period of grants will enable researchers to concentrate more of
their time on working with students and on research and discovery
rather than paperwork.
Continue support for key initiatives and priorities areas.--New and
exciting multidisciplinary initiatives at the NSF should be promoted
and encouraged. Significant growth in NSF budgets over the next several
years will allow the Foundation to support focused initiatives such as
those launched in recent years in nanotechnology, biocomplexity,
information technology research and workforce development, which foster
new and innovative multidisciplinary efforts on university campuses.
Increase support for education and training.--Declines in
enrollment of United States students in science, engineering and
mathematics programs at all levels are due to our failure to stimulate,
maintain and adequately support students with interests in these
fields. We therefore support increasing the NSF graduate student
stipend to $30,000 and urge additional support of graduate student
research throughout the NSF. Likewise, additional funding should be
provided for programs such as the Research Experiences for
Undergraduates (REU) program and other new and innovative programs
aimed at stimulating involvement of undergraduates in research.
Finally, we encourage support for programs, such as Math and Science
Partnership initiative, which are specifically focused on improving K-
12 math and science education.
Increase support for research infrastructure.--In its recently
issued report, the National Science Board (NSB) expresses concerns
regarding the current state of your scientific and engineering research
infrastructure. Specifically, they suggest increasing resources to
ensure that individual investigators and groups of investigators have
the necessary resources and tools to work at the frontiers of science
and engineering. The AAU supports the NSB's recommendations with
regards to increasing support of research infrastructure and would call
our attention to the need to upgrade mid-level infrastructure and to
the specific needs we have to upgrade university-based research
facilities and instrumentation. We also support funding for large-scale
research proposals, such as those proposed for funding within the NSF's
Major Research Equipment (MRE) account.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
NASA has a long history of productive collaboration with
universities, supporting research that has given the United States the
undisputed leadership role in the study of space and the earth's
environment. University-based research, with important technological
applications, has been supported through research grants, individual
collaborations between faculty and NASA scientists, and formal
partnerships between NASA centers and universities.
Workforce issues continue to be of concern to both NASA and
research universities. Both the current and former NASA Administrators
have publicly expressed concern about NASA's ability to attract and
retain qualified scientists and engineers. Within the next five years,
one third of NASA's workforce will be eligible for retirement. Many
university space science teams are facing similar problems. Formerly
strong teams are weakening as key investigators age and retire. In some
fields the problem is acute, with the major scientists all in their
sixties coupled with low enrollments of graduate students to follow
them. In other areas, there are major new initiatives to be undertaken
and yet no certainty that the required educated workforce will be
available. The nation's security depends on an aggressive space program
for surveillance and active defense, and economic impacts of space
communications and remote sensing are large. We must not lose our lead
in space research because we lack educated manpower.
The Subcommittee recognized the seriousness of this problem last
year and included report language in the fiscal year 2003 VA-HUD
Appropriations report asking NASA, OSTP and NSF, in cooperation with
the nation's leading research universities, to develop a comprehensive
plan and implementation strategy that will result in the number of
students pursuing advanced degrees. AAU remains eager to work with the
agencies on this issue. Moreover, while we are pleased that NASA has
created the Education Enterprise, we remain concerned that the primary
emphasis is still on K-12 programs. The Scholarship for Service program
is a step in the right direction, but there is much more that can be
done.
The AAU supports $7.7 billion for NASA's Science, Aeronautics, and
Exploration (SAE) activities, $34 million above the President's fiscal
year 2004 request. This would be a total increase of $440 million (6.1
percent) over the fiscal year 2003 level. The AAU recommendation is
consistent with the President's fiscal year 2004 budget proposal for
SAE with the exception of the Earth Science Enterprise. For that
office, AAU proposes a 2 percent inflationary increase over the fiscal
year 2003 appropriation of $1.7 billion. This would increase funding
for the office by $34 million. In particular, AAU supports the $26
million requested for acceleration of the Climate Change Research
Initiative. Universities are working with the Earth Science Enterprise
to develop new instruments and smaller, more capable spacecraft to
respond to research needs. The increased funding would help achieve
these goals.
AAU supports the Administration's fiscal year 2004 request of $4
billion for the Space Science Enterprise. This would be an increase of
$506 million (14.4 percent) over fiscal year 2003. The request funds
all currently planned missions, but also contains $59 million for an
exciting initiative called Beyond Einstein. This initiative has the
potential to answer three questions left unanswered by Albert
Einstein's theories: What powered the Big Bang? What happens to space,
time, and matter at the edge of a black hole? What is the mysterious
dark energy expanding the universe? Research in this area has the
potential to transform our understanding of the universe.
The Space Science request also includes new initiatives for power
and propulsion technology and for optical communications. The
development of these capabilities would address current limitations in
robotic space flight and have the potential to revolutionize the type
of planetary missions that can be flown a decade hence. AAU supports
this revitalization effort.
For the Biological and Physical Research Enterprise, AAU supports
the budget request of $973 million, an increase of $110 million (12.7
percent) over the fiscal year 2003 appropriation. The request includes
$39 million to begin a Human Research Initiative to further understand
and address health and logistical challenges encountered in long-
duration space flights. Although NASA emphasizes biomedical research
associated with crew health maintenance, a large number of
investigations address cutting-edge scientific problems with direct
application to Earth-based technological, industrial, and health
issues. Ground-based research is also essential for developing the
knowledge and validating experimental approaches for spaceflight
experiments, and is especially important at a time when the space
shuttle fleet is grounded. NASA currently funds about five ground-based
investigations for each flight investigation, and hopes eventually to
reach a ten-to-one ratio. Increased funding for this office would
permit more grants to be funded at higher levels for longer periods of
time.
The highly-leveraged Space Grant program plays an important and
successful role in workforce development through university programs
and K-12 outreach. AAU also urges the Committee to fund the Space Grant
program at its authorized level of $28 million.
Competitive Merit Review.--Finally, NASA's scientific achievements
are due both to the hard work of agency and university scientists and
to the agency's use of merit review for allocating research funding. We
believe that NASA should continue to use merit review to allocate
research funds, since this process has helped produce the discoveries
and advances from which the nation has benefited.
Thank you for your attention to these matters, and for the
opportunity to provide this testimony.
______
PREPARED STATEMENT OF THE SOCIETY FOR NEUROSCIENCE
Good morning Mr. Chairman and members of the Subcommittee. I am
pleased to be submit testimony for this Subcommittee's consideration. I
am Dr. Huda Akil and I serve as the President of the Society for
Neuroscience. Our organization has a membership of more than 31,000
basic and clinical researchers. We are the largest scientific
organization in the world dedicated to the study of the brain, spinal
cord and nervous system. The Society's primary goal is to promote the
exchange of information among researchers. We are also devoted to
education about the latest advances in brain research and the need to
make neuroscience research a funding priority.
Aside from my work at the Society, I am the Gardner Quarton
Distinguished University Professor of Neuroscience in Psychiatry at the
University of Michigan. I am also the Co-Director of the Mental Health
Research Institute in Ann Arbor. I study the biology of the emotional
circuits in the brain along with the impact of the environment on these
circuits. My work focuses on stress, mood disorders, and substance
abuse.
Mr. Chairman, the Society appreciates this opportunity to testify
and to discuss some of the important VA and NSF sponsored research
being conducted in the field of neuroscience. We thank the members of
this Subcommittee for their dedication to biomedical research at the
National Science Foundation (NSF) and the Veterans Administration (VA).
NATIONAL SCIENCE FOUNDATION
SfN is pleased with the funding levels outlined in the National
Science Foundation Reauthorization Act of 2002. This legislation
demonstrates Congress's commitment to a solid foundation for scientific
endeavors. In order to maintain the technological progress the United
States has consistently made, including advances in medical research,
this foundation is critical. For the National Science Foundation (NSF),
the President's budget request recommends $5.48 billion, an increase of
$450 million or 9.0 percent. The Society for Neuroscience endorses the
Coalition for National Science Funding (CNSF) request of $6.39 billion,
the same as the level included in the reauthorization.
While psychiatry, neurology, and neurosurgery are the better-known
medical specialties that have their basis in neuroscience, this
research has an impact on so many aspects of our lives and our nation's
health. Even for individuals not specifically diagnosed with brain
disorders or neurological conditions, neuroscience research facilitates
scientists' understanding of how the brain functions. This knowledge is
essential to understanding the impact of other diseases and disorders.
For example, there is ample evidence that depression increases the
likelihood of heart disease and that in turn heart disease can trigger
severe depression. Obesity is a major health issue in our country.
Feeding behavior and metabolic activity is controlled by the brain.
Understanding how to help moderate these two factors could save
billions of dollars in health care costs.
With the introduction of programs like Project BioShield and the
creation of the new Department of Homeland Security, the threat of
imminent danger is now a part of our daily lives. This threat will
undoubtedly have an impact on our nation's mental health. In addition
to conducting basic research, NSF research can help researchers
understand and treat the psychological effects of living with the
threat of terrorism and now, under conditions of a war. The science of
the brain can have great impact on the overall mental and physical
health of this nation.
As the Committee is aware, nearly all NSF appropriated funds are
received through competitively awarded grants, with only five percent
going to salaries and expenses. NSF is unique in its ability to channel
the majority of its funding to the specific goal of acquiring knowledge
and conducting research.
DEPARTMENT OF VETERANS AFFAIRS
The Veterans Health Administration (VHA) is the nation's largest
direct provider of healthcare services and the nation's most clinically
focused setting for medical and prosthetics research. The research
component attracts innovative researchers and provides veterans with
access to innovative therapies.
For the VA Medical and Prosthetics Research, we support the Friends
of VA Medical Care and Health Research (FOVA) and the Independent
Budget for the Veteran's Administration fiscal year 2004 Funding
Recommendation of $460 million. The VA's Medical and Prosthetic
Research Program fulfills a critical promise to our nation's veterans,
but also yields innovative research for the nation as a whole.
Investments in investigator-initiated research projects at VA have led
to an explosion of knowledge that promises to advance our understanding
of disease and unlock strategies for prevention, treatment, and cures.
Additional funding is needed to improve quality of life for our
veterans and plan for care of our nation's soldiers currently serving
in Iraq.
INCIDENCE AND ECONOMIC BURDEN OF NEUROLOGICAL AND PSYCHIATRIC DISEASES
Each year, we try to convey the importance of biomedical research
in terms of longer, healthier lives for those who suffer from
debilitating neurological and psychiatric disorders. It is in the
economic costs and burdens that the impact of these diseases is
measurable. For example:
--All Depressive Disorders affect 18.8 million Americans and cost $44
billion per year;
--Hearing loss costs the United States $56 billion per year, on the
28 million Americans affected;
--Alzheimer's Disease affects 4 million Americans and costs $100
billion a year;
--4 million people are affected by stroke, which costs the United
States $30 billion per year;
--$32.5 billion per year is spent on the 3 million Americans that
have schizophrenia;
--1.5 million Americans are affected by Parkinson's Disease at a cost
of $15 billion per year;
--Multiple Sclerosis affected 350,000 Americans at a cost of $7
billion per year.
CONCLUSION
NSF and the VA medical system attract top researchers and serve a
critical role by providing the opportunity to learn more about the
diseases and conditions that affect our quality of life. With NSF
building a fundamental base for scientific research and VA researchers
building on this, our country will continue to excel in technological
and biomedical advancements. Thank you for your efforts to ensure
adequate resources for this important endeavor. The Society would also
like to thank you for the opportunity to present testimony to the
Subcommittee.
______
PREPARED STATEMENT OF THE AMERICAN SOCIETY OF PLANT BIOLOGISTS
Founded in 1924, the American Society of Plant Biologists (ASPB)
represents nearly 6,000 plant scientists. The largest segment of ASPB
members conducts research at universities in each of the 50 states.
ASPB membership also includes scientists at government and commercial
laboratories. We appreciate this opportunity given by the Subcommittee
to submit these comments on behalf of the plant science community.
The plant biology community joins with other biologists in
extending our deep appreciation to Chairman Bond, Ranking Member
Mikulski, and to all members of the Subcommittee for your strong
support of plant genome research and other fundamental research
sponsored by the National Science Foundation (NSF) Directorate for
Biological Sciences and other directorates.
Tremendous advances in the area of plant genomics have resulted
from the interdisciplinary research efforts of plant biologists and
physical scientists supported by NSF. As the broadly based science
coalition, the Coalition for National Science Funding, noted in its
brochure on NSF printed last month (the NSF Directorate for Biological
Sciences section of the brochure is attached):
``Accomplishments
Plant Genomics & Economically Important Crops
A study that used microarray technology simultaneously explored the
expression of thousands of genes in soybeans in order to better
understand this economically vital plant's responses to drought and
disease. A separate study on the petunia flower revealed changes in
plant gene function that are inherited but that do not entail a change
in DNA sequence.''
Thanks to the support of the Subcommittee, NSF has been able to
sponsor genomic research on economically important plants and on the
model plant Arabidopsis thaliana. The entire Arabidopsis genome
sequence was completed in 2000, well ahead of schedule. Following the
completion of sequencing the genome, NSF has been proceeding with the
``2010 Project'' to determine the function of every gene in this model
plant. Knowledge of the comparatively simple Arabidopsis genome will
facilitate discovery of genes and their functions in other flowering
plants, including valuable agricultural crops, energy crops and crops
that will be the source of new pharmaceutical products.
NSF-funded researchers studying Arabidopsis and economically
important plants have learned from this research that some plants are
more resistant than others to viral, bacterial or fungal diseases.
Identification of specific disease-resistant genes will allow for the
development of commercially important plants that are resistant to
disease. Changes in Arabidopsis gene expression in response to light,
temperature, water availability, salinity, air quality and other
environmental factors have been found. Genes for cold tolerance have
been identified. This is a genomic treasure of knowledge that combined
with biotechnology will lead to the development of hardier food and
energy crops resistant to heat, drought, cold and other environmental
challenges. Scientists will have more effective tools to help prevent
environmental, agricultural crop and forestry disasters with the
increased knowledge available through genomic research.
With the knowledge gained through finding similarities between
genomes of different species of plants, scientists can manipulate
genomes of grains, fruits and flowers to create improved crops
including safer food crops with enhanced nutritional qualities. For
example, research is contributing to improved, higher quality vegetable
oil with reduced polyunsaturated fat, corn with higher quality protein,
and foods with inactivated allergens.
NSF-sponsored plant research has enabled scientists to successfully
inactivate allergens in the major food crop, wheat and in other foods.
Allergic reactions to wheat products such as bread and pasta should be
significantly reduced when these experimental food crop products become
commercially available.
The White House-appointed National Science and Technology Council,
Committee on Science, Interagency Working Group (IWG) on Plant Genomes
has reported on the significant progress made with NSF-sponsored plant
genome research. For example, NSF-supported researchers are developing
methodologies that will enhance and facilitate use of the information
encoded in the plant genome. These methodologies include microarray
analysis, chromatin charting, and comparative genomics.
The National Science and Technology Council's IWG cites the need to
increase support for plant genome research to $1.3 billion over the
next five years to reach objectives of its five-year plan. ASPB
strongly endorses the recommendations of the National Science and
Technology Council's IWG as outlined below in the IWG's January 2003
report: National Plant Genome Initiative: 2003-2008:
--$400 million for generating sequences and sequence resources for
genome structure and organizational studies will result in the
production of: (1) a completely finished rice genome sequence;
(2) completely finished and mapped sequences of gene-rich
regions of the maize genome; (3) highly accurate draft
sequences of gene-rich regions of several key plant species;
and (4) a variety of genome analysis tools to study structure
and organization of a large number of plant species of economic
importance.
--$200 million for functional genomics studies will allow U.S.
scientists to participate in international projects to
determine the function of all of the genes in Arabidopsis and
rice. The resulting functional genomics research resources will
be shared freely and quickly, building a foundation for
functional genomics research for all plant species.
--$300 million for translational genomics studies will enable a broad
community of scientists to begin applying the knowledge,
resources and tools of genomics to understand the fundamental
biology of plants and the underlying mechanisms for
economically important plant processes.
--$250 million for data management and informatics tools development
will enable a broad community of both basic and applied
scientists to utilize the outcomes of NPGI (National Plant
Genome Initiative) research activities. $250 million is a
conservative estimate since all plant genome research
activities described above will include informatics as an
integral component, and thus the actual expenditure for data
management and informatics will be considerably higher.
--$125 million for training, education and outreach will allow
establishment of a NPGI training grant program and
incorporation of training activities in all NPGI research
activities.
The National Science and Technology Council's IWG is made up of
representatives from the National Science Foundation, Department of
Agriculture, Department of Energy, National Institutes of Health, White
House Office of Science and Technology Policy and Office of Management
and Budget.
Plant genome research and research on the applications of plant
biotechnology, supported by this Subcommittee have revolutionized the
way scientists can improve plants. This is essential to meeting the
growing national and world needs for food, much of the world's energy,
industrial feed stocks, clothing and building materials, and for
lifesaving medicines.
We commend the Subcommittee for its fair and balanced support of
biological, physical and social and behavioral sciences sponsored by
the National Science Foundation. As the Subcommittee understands,
biological research sponsored by NSF differs significantly from medical
research sponsored by the National Institutes of Health (NIH). The
fundamental biology questions addressed by NSF-sponsored researchers
are not the same questions addressed by NIH-sponsored research.
Future discoveries providing novel ways to contribute to a cleaner
environment; better protection of limited fresh water and other
resources; and more effective responses to severe weather conditions
and other environmental stresses affecting plants and other organisms
could be lost if there was inadequate support for the NSF Directorate
for Biological Sciences.
The nation's capabilities in fundamental biology research in
plants, systematics, physiology, water relations, environmental stress
and other areas would decline rapidly if the NSF Directorate for
Biological Sciences received less emphasis for support. We appreciate
the Subcommittee's recognition of the substantial differences between
research sponsored by NSF and NIH. The nation benefits from support of
each of the science disciplines.
We strongly endorse and appreciate the efforts on the Subcommittee
to double support for NSF over five years.
______
PREPARED STATEMENT OF THE NATIONAL COUNCIL FOR SCIENCE AND THE
ENVIRONMENT
SUMMARY
The National Council for Science and the Environment (NCSE) urges
Congress to appropriate the funds necessary to implement the National
Science Foundation Authorization Act of 2002. The Act authorizes a
doubling of the NSF budget over five years, as championed by Senators
Bond and Mikulski. In fiscal year 2004, NCSE supports the authorized
NSF funding level of $6.39 billion. In addition to increasing the total
NSF budget to the authorized funding level, NCSE urges Congress to
provide strong support across NSF's entire portfolio, including its
environmental research and education portfolio.
The NSF budget request for fiscal year 2004 falls far short of the
funding level authorized. Senator Christopher Bond expressed his views
on the NSF budget request as follows: ``To say I am very disappointed
that the President's fiscal year 2004 budget request only provides a 3
percent increase over fiscal year 2003 would be a drastic
understatement.''
Federal investments in R&D and science education are essential to
the future well-being and prosperity of the nation and deserve the
highest priority of Congress. The long-term prosperity of the nation
and the maintenance of our quality of life depend on a steady and
growing commitment of federal resources to science and technology.
Environmental R&D is a critical component of the nation's R&D portfolio
and the National Science Foundation plays a pivotal role in supporting
environmental R&D. We encourage Congress to explore the role of
environmental R&D in homeland security and counterterrorism.
NCSE encourages Congress to strongly support full and effective
implementation of the National Science Board (NSB) report,
Environmental Science and Engineering for the 21st Century: The Role of
the National Science Foundation, within the context of efforts to
double the budget of the NSF. The NSB report calls for significant
improvements in the way that NSF supports environmental research,
assessment and education, and proposes that the Foundation invest an
additional $1 billion per year in these areas, to be phased in over
five years. NSF has taken many steps to implement the NSB report and
deserves full support from Congress.
NCSE emphasizes the need for increased funding for NSF's Priority
Area on Biocomplexity and the Environment. In addition, we recommend
full funding for two large projects--the National Ecological
Observatory Network (NEON) and EarthScope--which would create
unprecedented opportunities for environmental research.
NCSE urges Congress to restore full funding for the Environmental
Protection Agency's (EPA) Science to Achieve Results (STAR) graduate
fellowship program. The fiscal year 2004 budget request for EPA would
cut funding for the EPA STAR fellowship program by 50 percent, from
$9.75 million in fiscal year 2003 to $4.875 million in the fiscal year
2004 budget request.
NCSE commends the Chairman and Ranking Member of the Senate
Appropriations Subcommittee on VA, HUD, and Independent Agencies for
their bipartisan leadership on science for the nation's future. No
other Appropriations Subcommittee has a greater impact on the future of
environmental science.
INTRODUCTION
The National Council for Science and the Environment thanks the
Senate Appropriations Subcommittee on VA, HUD, and Independent Agencies
for the opportunity to provide testimony on the National Science
Foundation budget request for fiscal year 2004.
NCSE is a nonprofit, nonpartisan organization that has been working
since 1990 to improve the scientific basis for environmental
decisionmaking. Our work is endorsed by nearly 500 organizations,
ranging from the U.S. Chamber of Commerce to the Sierra Club, including
the National Association of Attorneys General, National Association of
Counties, some 300 colleges and universities, and more than 80
scientific and professional societies. As a neutral science-based
organization, NCSE promotes science and its relationship with
decisionmaking but does not take positions on environmental issues
themselves.
FEDERAL INVESTMENTS IN ENVIRONMENTAL R&D
Federal investments in R&D and science education are essential to
the future well-being and prosperity of the nation and deserve the
highest priority of the Congress. The long-term prosperity of the
nation and the maintenance of our quality of life depend on a steady
and growing commitment of federal resources to science and technology.
TABLE 1.--ENVIRONMENTAL R&D BY FEDERAL AGENCY
(Budget authority in millions of dollars)
----------------------------------------------------------------------------------------------------------------
Environmental R&D (dollars in Change (percent)
millions) --------------------------------
--------------------------------- Fiscal Fiscal Fiscal
Year 2002 Year 2002 Year 2002
Agency Actual Request Actual
Fiscal Fiscal Fiscal to to to
Year 2002 Year 2003 Year 2003 Fiscal Fiscal Fiscal
Actual Request Enacted Year 2003 Year 2003 Year 2003
Request Enacted Enacted
----------------------------------------------------------------------------------------------------------------
National Science Foundation................... 1,062 1,164 1,177 9.7 1.1 10.9
NASA.......................................... 1,628 1,628 1,708 0.0 4.9 4.9
Environmental Protection Agency............... 592 617 643 4.2 4.4 8.7
Department of Energy.......................... 1,840 1,649 1,813 -10.4 9.9 -1.5
Department of Defense......................... 400 471 498 18.0 5.7 24.7
Department of Commerce--NOAA.................. 677 605 684 -10.6 13.1 1.1
Department of the Interior.................... 623 608 627 -2.4 3.1 0.7
U.S. Department of Agriculture................ 504 473 531 -6.3 12.3 5.2
National Institutes of Health................. 81 74 84 -7.7 12.9 4.1
Department of Transportation.................. 68 67 71 -2.1 6.3 4.1
Smithsonian Institution....................... 40 41 41 3.8 0.0 3.8
Corps of Engineers............................ 27 27 29 0.0 8.5 8.5
-----------------------------------------------------------------
TOTAL................................... 7,541 7,425 7,907 -1.5 6.5 4.9
----------------------------------------------------------------------------------------------------------------
Source: AAAS/NCSE estimates based on OMB data for R&D in the fiscal year 2003 Budget, agency budget documents,
and information from agency budget offices.
Environmental R&D is a critical component of the nation's R&D
portfolio. NCSE estimates that federal funding for environmental R&D in
fiscal year 2003 is approximately $7.9 billion, an increase of $366
million or 4.9 percent relative to fiscal year 2002 (Table 1), based on
an analysis of the federal R&D budget conducted jointly with the
American Association for the Advancement of Science.
The Appropriations Subcommittee on VA, HUD and Independent Agencies
plays the largest role in setting funding levels for environmental R&D.
It has jurisdiction over agencies that account for 45 percent of
federal funding for environmental R&D.
Congress has played a crucial role in determining the level and
growth rate of federal funding for environmental R&D. The President's
fiscal year 2003 budget request would have cut federal funding for
environmental R&D by $116 million or 1.5 percent relative to fiscal
year 2002. Congress restored the $116 million cut and added an
additional $366 million above the President's fiscal year 2003 budget
request (Table 1).
In the fiscal year 2003 enacted appropriations bills, federal
funding for environmental R&D increased by 4.9 percent relative to
fiscal year 2002. However, federal funding federal funding for
environmental R&D grew at approximately one-third the rate of total
R&D, which increased by 13.8 percent to $117.3 billion. Federal
investments in environmental R&D need to keep pace with the growing
need to improve the scientific basis for environmental decisionmaking.
The National Science Foundation plays a pivotal role in supporting
environmental R&D. Environmental research often requires knowledge and
discoveries across disciplinary and institutional boundaries. The NSF
recognizes this and encourages multidisciplinary interactions within
directorates and among directorates and programs, as well as with other
federal agencies. The NSF has established a ``virtual directorate'' for
environmental research and education. Through this virtual directorate,
NSF coordinates the environmental research and education activities
supported by all the directorates and programs. NSF's Environmental
Research and Education portfolio has grown from $595 million in fiscal
year 1999 to over $900 million in fiscal year 2003.
IMPLEMENTING THE NSF DOUBLING ACT
The National Council for Science and the Environment urges Congress
to implement the National Science Foundation Authorization Act of 2002,
which passed Congress on November 15, 2002 and was signed into law by
the President on December 19, 2002. A central goal of the Act is to
double the budget of the National Science Foundation in five years. It
authorizes a budget increase of 105 percent for the NSF, from $4.8
billion in fiscal year 2002 to $9.8 billion in fiscal year 2007.
NCSE commends the Chairman and Ranking Member of the Senate
Appropriations Subcommittee on VA, HUD, and Independent Agencies for
their sustained leadership in a bipartisan, bi-cameral effort to double
NSF's budget over a five-year period. Senator Christopher Bond (R-MO)
and Senator Barbara Mikulski (D-MD) initiated a letter signed by a
bipartisan majority of 54 Senators aimed at doubling the budget of the
NSF in five years. They were original co-sponsors of the National
Science Foundation Doubling Act of 2002. Senator Bond said, ``I believe
this bill underscores the critical role NSF plays in the economic and
intellectual growth and well-being of this Nation,'' upon introduction
of the legislation.
The NSF Authorization Act has strong bipartisan support in
Congress. Senator Barbara Mikulski said, ``with this bill, we take an
important step to ensure the well-being of this nation and its
citizens.''
``This is landmark legislation,'' said Science Committee Chairman
Sherwood Boehlert (R-NY), who championed the bill in the House. ``From
our nation's students, to our economy, and to our security, the fruits
of this effort will be enjoyed for many years to come.''
Rep. Nick Smith (R-MI), Chairman of the House Science Subcommittee
on Research, said, ``These efforts will pay off in the form of
continued scientific breakthroughs that will improve our lives in ways
that we can only imagine today.''
``Passage of this bill is a great achievement,'' said Rep. Vernon
Ehlers (R-MI). ``The research results, while not clear now, will reap
huge benefits in the future.''
The NSF Authorization Act of 2002 is a major milestone for the NSF,
the scientific community, and the nation. In order to realize the
outcomes envisioned by this legislation, Congress must appropriate the
funding levels authorized in the NSF Authorization Act.
NATIONAL SCIENCE FOUNDATION BUDGET REQUEST FOR FISCAL YEAR 2004
The National Council for Science and the Environment urges Congress
to appropriate the authorized funding level of $6.39 billion for the
National Science Foundation in fiscal year 2004. The fiscal year 2004
budget request would increase funding for NSF by 3.2 percent to $5.5
billion. The fiscal year 2004 budget request of $5.5 billion falls far
short of the $6.39 billion budget and 15 percent increase authorized in
the NSF doubling act (Table 2).
At a recent congressional hearing, Senator Christopher Bond (R-MO)
expressed his views on the NSF budget request as follows: ``To say I am
very disappointed that the President's fiscal year 2004 budget request
only provides a 3 percent increase over fiscal year 2003 would be a
drastic understatement.''
In addition to increasing total NSF funding to the authorized
level, NCSE urges Congress to provide strong support across NSF's
entire research portfolio. When the NSF Authorization Act was
introduced in the House of Representatives on May 7, 2002, the bill
included language about the allocation of funding among ``the physical
sciences, mathematics, and engineering.'' References to ``physical
sciences'' as opposed to all fields of science could have negative
consequences for the environmental sciences, geosciences, non-
biomedical life sciences, social sciences and interdisciplinary
science. On May 22, 2002, the House Science Committee passed an
amendment to the NSF authorization act that replaced ``physical
sciences'' with ``sciences'' and made related revisions.
The House Science Committee Report (House Report 107-488) on the
NSF Authorization Act provides further guidance on the balance in the
NSF's research portfolio: ``While the Committee is of the opinion that
the mathematical, physical, and information sciences and engineering
disciplines have been significantly underfunded, the Committee also
recognizes that greater science funding for other disciplines,
including the non-biomedical life sciences and the social sciences is
also necessary . . . the committee strongly believes that all
disciplines for which NSF provides support should receive significant
budget increases.''
NCSE supports the Science Committee's view that NSF's entire
research portfolio--including the environmental sciences, geosciences,
non-biomedical life sciences, social sciences, and interdisciplinary
science--should receive significant budget increases. Although the
fiscal year 2004 budget request would increase NSF's total budget by
3.2 percent, several key programs that provide funding for
environmental research would decline under the fiscal year 2004 budget
request.
TABLE 2.--NATIONAL SCIENCE FOUNDATION BUDGET
----------------------------------------------------------------------------------------------------------------
Budget Authority (dollars in millions) Change (percent)
--------------------------------------------------------------------------
Fiscal Fiscal
NSF Program Fiscal Fiscal Year Fiscal Year Fiscal Year Year 2002 Year 2003
Year 2002 2003 2004 2004 to Fiscal to Fiscal
Actual Enacted \1\ Request \2\ Authorized \3\ Year 2003 Year 2004
\4\ Req. \5\
----------------------------------------------------------------------------------------------------------------
Research and Related Activities 3,612 4,056 4,106 4,800 12.3 1.2
(R&RA)..............................
Biological Sciences.............. 510 571 562 .............. 12.1 -1.6
Computer & Info. Science & 515 579 584 .............. 12.3 1.0
Engineering.....................
Engineering...................... 471 531 537 .............. 12.7 1.1
Geosciences...................... 610 684 688 .............. 12.3 0.5
Mathematical & Physical Sciences. 920 1,035 1,061 .............. 12.4 2.6
Social, Behavioral & Economic 184 191 212 .............. 3.8 10.9
Sciences........................
Polar Programs................... 301 319 330 .............. 6.1 3.4
Integrative Activities........... 106 147 132 .............. 39.0 -9.9
Budget Adjustment \6\............ -4 ........... ........... .............. ......... .........
Education and Human Resources (EHR).. 894 903 938 1,157 1.0 3.9
Major Research Equipment............. 139 149 202 211 7.0 36.2
Salaries and Expenses \7\............ 170 193 226 214 13.0 17.2
Office of Inspector General.......... 7 9 9 8 35.9 -4.6
--------------------------------------------------------------------------
Total NSF Budget............. 4,823 5,310 5,481 6,391 10.1 3.2
----------------------------------------------------------------------------------------------------------------
Source: NSF budget justification and data tables & AAAS (revised March 2003).
\1\ Fiscal year 2003 Enacted figures reflect the final fiscal year 2003 omnibus appropriations bill passed by
Congress on Feb. 13, 2003 and signed by the President on Feb. 20, 2003.
\2\ Fiscal year 2004 President's budget request was released Feb. 3, 2003 before Congress passed the fiscal year
2003 omnibus appropriations bill.
\3\ Fiscal year 2004 Authorized figures are from the NSF Authorization Act of 2002, which was passed by Congress
Nov. 15, 2002 and signed by the President Dec. 19, 2002.
\4\ Percent change from fiscal year 2002 actual to fiscal year 2003 enacted appropriations.
\5\ Percent change from fiscal year 2003 enacted budget to the President's fiscal year 2004 budget request.
\6\ Adjustment from budget obligation to budget authority.
\7\ Includes NSB Staff Salaries.
Biological Sciences Directorate.--Under the fiscal year 2004 budget
request, funding for NSF's Biological Sciences Directorate would
decline by 1.6 percent relative to the fiscal year 2003 enacted
appropriations bill (Table 2). Within the Biological Sciences
Directorate, the budget for Environmental Biology would decline by 2.8
percent, Integrative Biology and Neuroscience would decline by 3.1
percent, and Emerging Frontiers would increase by 11.6 percent.
Geosciences Directorate.--Funding for the Geosciences Directorate
would increase by 0.5 percent, but two of its three divisions would
face cuts in fiscal year 2004 relative to the fiscal year 2003 enacted
appropriations bill. Funding for the Earth Sciences Division would
decline by 4.9 percent and funding for the Ocean Sciences Division
would decline by 0.7 percent.
Biocomplexity and the Environment Priority Area.--NCSE is
particularly supportive of NSF's priority area on Biocomplexity and the
Environment. This initiative provides a focal point for investigators
from different disciplines to work together to understand complex
environmental systems, including the roles of humans in shaping these
systems.
The Biocomplexity and the Environment initiative is a growing
priority within NSF, as reflected by the growth of its budget from
$59.0 million in fiscal year 2002 to $99.8 million in the fiscal year
2004 budget request. This priority area has been expanded to include
research in microbial genome sequencing and ecology of infectious
diseases--to help develop strategies to assess and manage the risks of
infectious diseases, invasive species, and biological weapons. We urge
Congress to support this critical initiative and to consider funding it
at a level of $136 million, as proposed in fiscal year 2000 budget
request for NSF.
Major Research Equipment.--The NSF budget request includes funding
for the National Ecological Observatory Network (NEON) and EarthScope
in its account for Major Research Equipment and Facilities
Construction. These projects would provide major new opportunities for
environmental research.
--National Ecological Observatory Network.--NEON would be a
continental scale research instrument consisting of 10
geographically distributed observatories, networked via state-
of-the-art communications, for integrated studies to obtain a
predictive understanding of the nation's environments. NSF is
requesting $12 million in initial funding for the first two
NEON observatories in fiscal year 2004.
--EarthScope.--EarthScope would be a distributed, multi-purpose
geophysical instrument array that is designed to make major
advances in our knowledge and understanding of the structure
and dynamics of the North American continent. Three components
of the project would be the United States Seismic Array
(USArray), the San Andreas Fault Observatory at Depth, and the
Plate Boundary Observatory. NSF is requesting $45 million for
EarthScope in fiscal year 2004.
We urge Congress to fund both NEON and EarthScope at the levels
specified in fiscal year 2004 budget request. Both NEON and EarthScope
were included in NSF's budget request for fiscal year 2001 but funding
for these projects was not provided in the enacted appropriations bill.
NSF's budget request for fiscal year 2002 did not contain any new
starts for the MREFC account. In fiscal year 2003, the NSF budget
request included initial funding for both NEON and EarthScope. Congress
appropriated $30 million for EarthScope in fiscal year 2003 but
deferred funding for NEON ``without prejudice,'' implying that the
project was not rejected based on merit and may be funded in the
future.
national science board report on environmental science and engineering
The National Council for Science and the Environment encourages
Congress to support full and effective implementation of the National
Science Board's report, Environmental Science and Engineering for the
21st Century: The Role of the National Science Foundation, within the
context of a doubling of the budget for the NSF.
The NSB report sets out a bold, ambitious set of recommendations
that could dramatically improve the scientific basis for environmental
decisionmaking. The first keystone recommendation is as follows:
``Environmental research, education, and scientific assessment
should be one of NSF's highest priorities. The current environmental
portfolio represents an expenditure of approximately $600 million per
year. In view of the overwhelming importance of, and exciting
opportunities for, progress in the environmental arena, and because
existing resources are fully and appropriately utilized, new funding
will be required. We recommend that support for environmental research,
education, and scientific assessment at NSF be increased by an
additional $1 billion, phased in over the next 5 years, to reach an
annual expenditure of approximately $1.6 billion.''
NSF has taken many steps to implement the recommendations of the
NSB. It has appointed an environmental coordinator and created a new
position in the office of the Director. It has established a Priority
Area on Biocomplexity and the Environment that provides new
opportunities for multidisciplinary research on the interactivity of
biota and the environment. NSF has formed an Advisory Committee on
Environmental Research and Education. In January 2003, the Advisory
Committee released a report entitled Complex Environmental Systems:
Synthesis for Earth, Life, and Society in the 21st Century, which
provides a 10-year outlook in environmental research and education for
the NSF. The report presents pathways for building interdisciplinary
bridges and increasing capacity to address environmental challenges.
``The concept of synthesis-based research is a touchstone for
environmental research and education,'' said Stephanie Pfirman, Past
Chair of the Advisory Committee, ``and long-term support is necessary
to fulfill its promise.''
Full implementation of the NSB report will require strong support
from Congress and a significant increase in funding for NSF's portfolio
of environmental science, engineering and education.
EPA'S STAR GRADUATE FELLOWSHIP PROGRAM
NCSE urges Congress to restore full funding for the Environmental
Protection Agency's Science to Achieve Results (STAR) graduate
fellowship program. STAR is the only federally supported fellowship
program specifically aimed at graduate students in the environmental
sciences and policy areas. From 1995 to 2001, EPA funded over 800 STAR
fellows at 168 colleges and universities. The STAR fellowship program
is highly competitive, with only 7 percent of applicants being awarded
fellowships.
The fiscal year 2004 budget request for EPA would cut funding for
the EPA STAR fellowship by 50 percent, from $9.75 million in the fiscal
year 2003 omnibus appropriations bill to $4.875 million in the fiscal
year 2004 budget request. Last year, the EPA budget request for fiscal
year 2003 would have eliminated all funding for new STAR fellowships.
Congress responded by restoring full funding for the STAR fellowship
program in the fiscal year 2003 appropriations process and we call upon
Congress to restore full funding again in fiscal year 2004. NCSE urges
Congress to appropriate at least $9.75 million for the STAR fellowship
program in fiscal year 2004. A higher appropriation is needed to
redress the impact of the cancellation of the STAR fellowship
competition last year. The proposed elimination of the STAR fellowship
in the President's fiscal year 2003 budget request led to the
suspension of new fellowships beginning in February 2002, despite the
fact that over 1,400 applications had already been received and
reviewed for 100 new fellowships.
HOMELAND SECURITY AND ENVIRONMENTAL R&D
Environmental R&D is a critical component of homeland security.
Homeland defense will benefit from a robust and balanced research
agenda in addition to the rapid development of existing technologies.
Consider, for example, research on the explosion of a ``dirty bomb'' in
an urban area. In addition to research related to the treatment of
victims, protection of first responders, and emergency response plans,
a balanced research agenda would include interdisciplinary studies on
the fate, transport, and clean-up of radionuclides and toxins in air,
water, and land. Environmental scientists conduct research on chemical,
isotopic and biological tracers on a broad range of length scales and
time scales. They are well-positioned to contribute to homeland
defense. We encourage Congress to explore the role of environmental R&D
in homeland security and counterterrorism and to recommend actions that
would improve the nation's capacity in this area.
The National Council for Science and the NCSE commends the Chairman
and Ranking Member of the Senate Appropriations Subcommittee on VA,
HUD, and Independent Agencies for their bipartisan leadership on
science for the nation's future. No other Appropriations Subcommittee
has a greater impact on the future of environmental science.
Investments in the environmental science continue to pay enormous
dividends to the nation. Thank you very much for your interest in
improving the scientific basis for environmental decisionmaking.
______
PREPARED STATEMENT OF AMERICAN RIVERS
This year, American Rivers was joined by more than 400 national,
regional and local organizations concerned with river conservation
throughout the United States \1\ in calling for significantly increased
funding for the following Environmental Protection Agency (EPA)
programs and other programs funded through the Veteran's Affairs,
Housing and Urban Development, and Independent Agencies (VA-HUD)
Appropriations bill. I urge that these requests be incorporated in the
VA-HUD Appropriations bill for fiscal year 2004.
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\1\ These groups have endorsed the ``River Budget for fiscal year
2004'', a report of national funding priorities for local river
conservation. A list of groups endorsing the River Budget can be viewed
at http://www.americanrivers.org/riverbudget/default.htm.
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CLEAN WATER STATE REVOLVING FUND
With the passage of the Clean Water Act 30 years ago, Congress made
a financial commitment to protecting and improving water quality
through grants to municipalities for construction of wastewater
treatment systems. In 1987, the construction grants program was
converted to a revolving loan program, in which federal capitalization
grants are made to states that then make low-interest loans to
municipalities for wastewater, stormwater, and other water quality
protection activities. The 1996 Safe Drinking Water Act also created
state revolving funds (SRFs) for drinking water treatment and
protection of source water and wellhead areas.
Maintaining the nation's high-quality drinking water and wastewater
services will require a substantial increase in spending over the next
two decades. Aging infrastructure, increased population and sprawl have
stressed existing water infrastructure systems, as evidenced by the
yearly 1.2 trillion gallons of stormwater overflows from combined sewer
systems that carry untreated sewage into the nation's rivers and other
water bodies. A May 2002 study by the Congressional Budget Office
estimates that from 2000 to 2019, annual costs for investment in the
nation's water systems will average between $11.6 billion and $20.1
billion for drinking water systems and between $13.0 billion and $20.9
billion for wastewater systems.
The SRF programs have been used to fund projects that reduce non-
point pollution, protect estuaries, prevent contamination of drinking
source waters, and reduce polluted runoff by protecting natural areas
and other ``green infrastructure,'' such as stream buffers. These
approaches are often more cost-effective and provide a wide array of
environmental and social benefits, including open space, wildlife
habitat, recreation, and water supply.
Congress should reauthorize the Clean Water SRF program at $3.2
billion and the Drinking Water SRF at $1.5 billion, and appropriate the
full amount authorized to both SRF programs.
FEDERAL SALMON PLAN FOR THE COLUMBIA AND SNAKE RIVERS
Several Members of Congress from the Northwest, as well as the
Administration, have pledged to work to restore twelve Endangered
Species Act listed stocks of Snake and Columbia river salmon without
partially removing the lower four Snake River dams. Congress can help
honor that commitment by funding the necessary salmon recovery
measures. As we approach the first ``check-in'' for the 2000 federal
Salmon Plan for the Columbia and Snake Rivers this September, federal
agencies have failed to fulfill over 70 percent of its requirements.
So far, Salmon Plan implementation has fallen well behind schedule,
due in part to inadequate federal funding. Full funding for fiscal year
2004 will require $529.3 million distributed among ten federal agencies
through five different appropriations bills. The VA-HUD and Independent
Agencies Appropriations bill provides funding to one of these agencies,
the Environmental Protection Agency. EPA is charged with addressing
water quality issues in the Snake and Columbia rivers, including the
unnaturally high water temperatures and dissolved gas levels caused by
the 29 federal dams in the Columbia River Basin.
In fiscal year 2003, the EPA was one of only two agencies charged
with implementing the Salmon Plan to receive sufficient funding. In
fiscal year 2004, Congress should maintain the EPA's Columbia Basin
budget at $18.3 million.
TOTAL MAXIMUM DAILY LOADS, CLEAN WATER ACT SECTION 303(D)
The water quality of America's natural water bodies is damaged and
threatened by a wide range of activities and sources. Water quality
impairments will not be cured without accounting for all of these
sources and addressing problems in troubled watersheds in a
comprehensive manner. The establishment of Total Maximum Daily Loads
(TMDLs) under section 303(d) of the Clean Water Act is a sensible and
necessary step in this process. States and the Environmental Protection
Agency (EPA) must identify all sources of water quality impairment to
rivers, streams and lakes that do not meet water quality standards,
develop specific goals for improvement, and design plans to achieve the
best overall results for the water bodies.
However, this sensible process has not proceeded as quickly and
efficiently as it should, due in part to a shortage of resources within
regulatory agencies responsible for making the comprehensive
assessments and strategies for improvement. Investigations of the harm
caused by point source and non-point source pollution, physical
alterations and habitat destruction in aquatic systems, and biological
contaminants and invasive species can be complicated and must be done
thoroughly and professionally. TMDLs must be developed in a way that is
consistent with the Clean Water Act, is compatible with related water
quality programs and regulatory processes, and leads to real
improvements, rather than more paperwork and delay. The development of
strong TMDLs requires adequate commitment and resources.
In this, the 30th anniversary of the Clean Water Act, far too many
of our nation's waters fail to support healthy natural communities of
animals and plants and are dangerous or unsuitable for people to use
and enjoy. Congress should show its continued commitment to restoring
our natural heritage and appropriate $250 million for EPA's State
Program Management Grants (Section 106 of the Clean Water Act) for
grants to states for TMDL development and implementation in fiscal year
2004.
NONPOINT SOURCE MANAGEMENT PROGRAM
Every time it rains, silt, fertilizer, pesticides, oil, manure, and
other pollutants flow into rivers and streams. As societal growth paves
more land area, produces more air emissions, culverts and manipulates
more streams and drainage channels, and generally encroaches further
into naturally-functioning systems with human-designed environments, it
damages water bodies in countless ways. Though the idea of water
pollution often produces visions of pipes spewing industrial wastes or
sewage into streams, these ``non-point sources'' of pollution degrade
thousands of stream miles and hundreds of lakes, ponds, and wetlands.
The damage caused by non-point source pollution includes habitat and
aquatic life degradation, drinking water contamination, swimming area
closures, lost recreational opportunities, fish kills, aesthetic
degradation of waterways, and many other severe environmental and human
health problems.
While the Clean Water Act (CWA) established regulatory limits,
targets, and penalties for point source pollution in 1972, it did not
provide resources to address polluted runoff until 1987. That year,
Congress recognized the need for greater federal leadership to reduce
non-point source pollution by amending the CWA to establish the Section
319 Non-point Source Management Program. The Section 319 program
provides grant money that states, territories, and Indian tribes can
use for a wide variety of non-point pollution reduction activities
including technical and financial assistance, education, training,
technology transfer, demonstration projects, and monitoring.
The threat posed by non-point source pollution is as great as or
greater than ever before and increasing. Congress should appropriate
$250 million for EPA's Section 319 Non-point Source Management Program
to help states and localities reduce runoff pollution.
ENFORCEMENT OF DISCHARGE PERMITS UNDER THE CLEAN WATER ACT
The Environmental Protection Agency's (EPA) ability to enforce
environmental laws is critical to our nation's efforts to fulfill the
Clean Water Act's stated objective of restoring waters to fishable and
swimmable conditions. While the nation has made great progress in
cleaning up its waters, we continue to need a strong enforcement
presence by EPA because 40 percent of waters remain unsafe for fishing
or swimming.
The Clean Water Act prohibits discharges of pollutants through
point sources into U.S. waters without a National Pollution Discharge
Elimination System permit. These permits contain limits on what can be
discharged, monitoring and reporting requirements, and other provisions
to ensure that the discharge does not harm water quality or human
health.
Nationwide, about one-fourth of all major water polluters, nearly
1,700 facilities, are operating without current permits to discharge
wastes to the nation's waters. More than 750 major facility permits
have been expired for two years, and 251 have been expired for 5 years.
Many of these facilities dump huge amounts of highly toxic effluent
into receiving waters. More than one-fourth of major facilities were in
significant noncompliance with their permits over a recent 15-month
period.
To ensure that permits are current and properly complied with, EPA
engages in enforcement activities, including inspections, sampling,
testing, as well as civil and criminal enforcement actions. It is
essential that EPA maintain a strong enforcement presence working with
the states to undertake civil and criminal enforcement activities at
facilities that can result in real improvements in environmental
quality. For example, recent settlements with multiple cities across
the country have helped clean our rivers and coastal waters of raw
sewage overflows, improved operation and maintenance, and expanded
treatment capacity. EPA needs adequate level-funding to conduct
activities such as laboratory analysis and the hiring of expert
witnesses to bring cases to make polluters pay for actions that harm
the environment.
The need to vigilantly guard the health of the nation's waters from
illegal discharges is greater than ever before. It is essential that
Congress fund the EPA Office of Enforcement and Compliance at a level
sufficient to retain fiscal year 2002 staffing levels with adequate
increases to allow for cost of living increases. Congress should fund
EPA's enforcement programs at $485 million.
CHESAPEAKE BAY PROGRAM
The Chesapeake Bay, the nation's largest estuary and one of the
most ecologically productive in the world, is home to more than 15
million people and 3,600 species of plants and wildlife. The 64,000-
square mile watershed drains more than 100,000 streams and rivers,
provides important opportunities for recreation and refuge for fish and
wildlife, and serves as a key resource for the prosperity of the
region.
Unfortunately, the ecological integrity and productivity of the
Bay's watershed have been severely compromised by development,
agriculture, over-harvesting of resources, and more than 2,500 small
dams and other obstructions that block migratory fish from their
historic spawning habitats. The impact on the Bay's important seasonal
fisheries has been dramatic. Annual harvests of Bay shad have dropped
from 17.5 million pounds to less than 2 million during the past
century. Between 1976 and 1985, the commercial harvest of anadromous
fish in the Bay declined by 82 percent.
Concern over these threats culminated in the creation of the
Chesapeake Bay Program (CBP) in 1983, establishing what is now a
national and international model for estuarine research and
restoration. The program focuses on restoring tributaries, underwater
Bay grasses, and fish passage, and also reducing agricultural runoff
pollution and toxics. Among other goals, the CBP hopes to reopen more
than 1,350 miles of upstream spawning habitat for migratory fish by
removing small dams and other blockages on the Bay's rivers by 2003. In
the past decade, the program has reopened more than 1,000 miles of
habitat to migratory fish.
Restoring the Bay's fisheries would provide the region with a
significant economic boost. According to the Fish and Wildlife Service,
healthy fish populations in the Bay and its tributaries would generate
$10 to $30 million per year in shad sport fishing alone.
In fiscal year 2004, Congress should provide the CBP with $30
million to better protect and restore this valuable ecosystem. In
addition, Congress should make the Chesapeake Bay Small Watershed
Grants Program, a popular funding source for education and restoration
projects throughout the Bay watershed, a separate line item to ensure
its long-term success and to help restore funding to other Bay program
areas, including fish passage engineering, construction and
coordination.
WATERSHED ASSISTANCE GRANTS
Solving today's water quality challenges, especially habitat loss
and non-point source pollution, requires the active involvement of
local citizens who care about the water quality where they live and are
willing to take action. Ideally, locally-based watershed partnerships
provide the frameworks to focus public and private sector efforts to
identify needs, define protection and improvement goals, implement
solutions, and measure progress in protecting and restoring watersheds.
Yet without a sustainable, healthy organizational structure and
good leadership, the survival of local watershed partnerships becomes
harder. Without a watershed steward, it becomes difficult to implement
the actual on-the-ground restoration work. To address this problem, the
U.S. Environmental Protection Agency (EPA) teamed up with citizen
activists to institute the Watershed Assistance Grants program.
Administered in collaboration with the EPA, the Watershed
Assistance Grants program supports the growth, sustainability, and
organizational capacity of local watershed partnerships across the
United States in the form of grants. Its goals are essential to the
river movement, as the program addresses a serious funding gap in local
watershed protection efforts.
Unfortunately, minimal program funding is available to build the
strength of these partnerships. In the last three years, only 6 percent
of the proposals received by the program were funded, with award
amounts ranging from $1,000 to $30,000. To date, 1,360 proposals
(requesting approximately $25 million) have been submitted, but only 80
awards have been made to locally initiated watershed partnerships in 39
states.
Each year for the past two years, the program has reviewed $2
million in worthwhile applications. In fiscal year 2004, Congress
should provide the Watershed Assistance Grants program with $2 million
to support innovative efforts that build the capacity of community-
based partnerships to conserve and restore watersheds.
______
PREPARED STATEMENT OF THE STATE AND TERRITORIAL AIR POLLUTION PROGRAM
ADMINISTRATORS AND THE ASSOCIATION OF LOCAL AIR POLLUTION CONTROL
OFFICIALS
The State and Territorial Air Pollution Program Administrators
(STAPPA) and the Association of Local Air Pollution Control Officials
(ALAPCO) appreciate this opportunity to provide testimony regarding the
fiscal year 2004 proposed budget for the U.S. Environmental Protection
Agency (EPA), particularly regarding grants to state and local air
pollution control agencies under Sections 103 and 105 of the Clean Air
Act.
STAPPA and ALAPCO are the national associations of air quality
officials in 54 states and territories and more than 165 metropolitan
areas across the country. The Clean Air Act gives state and local air
quality officials the primary responsibility for implementing our
country's clean air program on behalf of our citizens. These agencies
must work to limit or prevent emissions of a host of pollutants from a
variety of sources that have impacts on public health. These include
particulate matter, ground-level ozone, toxic air pollution, and acid
rain, among others. State and local air agencies must maintain the
fundamental elements of their programs--the foundation of our clean air
efforts--while, at the same time, addressing new and emerging problems.
RECOMMENDATION
The President's fiscal year 2004 budget request calls for $228.5
million for state and local air agency grants under Sections 103 and
105 of the Clean Air Act, which is $5 million more than Congress
appropriated for fiscal year 2003. While we appreciate this modest
increase, the total is not sufficient to support our vital air quality
efforts. Furthermore, the increase is earmarked for a specific
purpose--air toxics monitoring--so it is not available to fund many of
the different and varied programs that state and local air agencies
must undertake. While we agree that monitoring toxic air pollution is
very important, there are many other activities that are in great need
of additional funding as well. The fact of the matter is that state and
local air agencies are currently underfunded in general and are in need
of substantial increases for numerous activities.
We are very aware that there are tremendous budgetary pressures
facing Congress, mostly due to the increased need for homeland security
and expenses related to events in Iraq. As a result, many programs
cannot be funded as robustly as needed. However, in light of the fact
that air pollution poses a considerable threat to the public health of
our country, we believe it should be considered one of our highest
priorities. We recommend, then, that federal grants to state and local
air quality agencies be increased by $25 million above the President's
request, which is only a small share of the amount that is actually
needed.
THE NEED FOR INCREASES IS GREAT
It is well established that air pollution presents a pervasive
national threat to public health and the environment. The health risks
are not only significant, we know of no other environmental problem
presenting greater risk. Air quality regulators at all levels of
government have worked diligently for many years in pursuit of our
clean air goals. In spite of the considerable improvements that we have
achieved, clean, healthful air nationwide still eludes us.
The magnitude of our air quality problem and the associated health
effects, which will be discussed below, make it clear that funding for
the control of air pollution should be a top priority. Unfortunately,
the reality is that state and local air agencies are underfunded.
Although states and localities devote significant resources to their
air quality programs, air agencies have been operating for years with
inadequate financial support from the federal government. As a result,
many of our programs are not as robust as they need to be.
A few years ago, STAPPA and ALAPCO, in cooperation with EPA,
conducted a study of air program funding and estimated that federal
grants to state and local air pollution control agencies under Section
105 of the Clean Air Act fell short of our needs by nearly $100 million
a year. While we have received modest funding increases in recent
years, and additional grants are proposed for fiscal year 2004, these
are simply not enough, especially in light of our expanded
responsibilities. Unless our programs receive a substantially greater
boost in funding, we will continue to face a serious financial
shortfall, which will adversely affect our ability to protect and
improve air quality. This shortfall will only become worse as greater
demands are placed on our programs. Among the air program priorities
for which state and local agencies require additional funding are
hazardous air pollutants (HAPs); fine particulate matter, especially
diesel particulate; compliance; inspections; monitoring; data
improvements, including maintaining and improving infrastructures,
emission inventories and modeling; haze and visibility monitoring; and
outreach to and education of the public and regulated community.
To address the problem of inadequate funds we have identified, we
recommend that federal grants to state and local air pollution control
agencies be increased in fiscal year 2004. While we believe an increase
of $100 million would help our programs tremendously, we recognize that
there are many other competing programs also in need of additional
funding, especially this year. Therefore, we are requesting an increase
of a quarter of that amount--$25 million.
THE MAGNITUDE OF THE AIR POLLUTION PROBLEM
Air pollution is a persistent, nationwide problem. Over 170 million
tons of pollution are emitted into the air each year across the United
States. One hundred and thirty-three million people live in areas of
the country that violate at least one of the six health-based National
Ambient Air Quality Standards (NAAQS), not to mention the many millions
of people who are exposed to toxic air pollutants that cause cancer and
other health problems. As noted, the health risks from air pollution
are significant and far exceed those from almost every other
environmental medium. State and local agencies must address a range of
serious air quality problems, a few of which are briefly described
below.
Perhaps the most complex air quality problem we face is achievement
and maintenance of the NAAQS for particulate matter and ozone. In 1997,
EPA established a new standard for fine particulate matter
(PM2.5). Although we are still working to complete the data-
gathering efforts necessary to determine which areas of the country
violate the PM2.5 standard, one thing is very clear:
PM2.5 poses the greatest health risk of any air pollutant,
resulting in as many as 30,000 premature deaths each year.
Additionally, fine particles are responsible for a variety of adverse
health impacts, including aggravation of existing respiratory and
cardiovascular disease, damage to lung tissue, impaired breathing and
respiratory symptoms, irregular heart beat, heart attacks and lung
cancer.
Fine particles are not only emitted into the atmosphere directly
from combustion processes, they are also formed secondarily in the
atmosphere from such precursor emissions as oxides of nitrogen
(NOX), sulfur dioxide and ammonia; in addition to their
adverse health consequences, fine particles also contribute to regional
haze. Based on preliminary air quality monitoring data, it appears that
PM2.5 concentrations in over 170 counties throughout the
U.S. exceed the health-based standard.
Overall, progress in attaining clean air has been slowest with
respect to ground-level ozone. Some parts of the country actually
experienced increased levels of ozone in the past 10 years, and in 33
national parks, ozone levels have risen by more than 4 percent. A
significant factor in this trend is the increase we have experienced in
NOX emissions, which are not only a precursor to ozone, but
also a contributor to such public health and welfare threats as acid
rain, eutrophication of water bodies, regional haze and, as mentioned,
secondary PM2.5. Over the past 20 years, NOX
emissions have increased by almost 9 percent, largely due to emissions
from nonroad engines and diesel vehicles. Current data show that almost
300 counties measure exceedances of the eight-hour ozone standard.
The serious public health threat posed nationwide by emissions of
hazardous air pollutants (HAPs) is another continuing concern we have.
Last year EPA released the most recent results of its National-Scale
Air Toxics Assessment (NATA), which provides nationwide estimates of
exposure and health risks associated with 32 HAPs. While the NATA
information reflects the situation of several years ago, it still
provides the best indication we have of the magnitude of the problem.
According to EPA, more than 200 million people in the U.S. live in
areas where the lifetime cancer risk from exposure to HAPs exceeds 1 in
100,000. Moreover, approximately 3 million face a lifetime cancer risk
of 1 in 10,000. Considering that EPA has established 1 in 1,000,000 as
the generally acceptable level of risk, these estimates not only
illustrate the pervasive nature of the threat posed by HAPs, they also
speak to the level of effort that will be required to reduce the risk
and the high level of priority that should be placed on doing so.
One HAP of special concern is mercury. Some portion of the mercury
that is found in fish is the result of air emissions of that
contaminant. The deposition of air emissions in our water bodies, and
ultimately into our fish, is a significant problem, especially for
those who rely on fish as an important part of their diets. Because of
public health concerns, many states have had to issue advisories to the
public about elevated concentrations of mercury in the fish that is
caught in their water bodies. In fact, by 2001, 44 states had issued
advisories, with 17 of them applying statewide. An additional nine
states issued advisories for their coastal waters.
The effect of air pollution on the nation's population is very
troubling. This concern is only sharpened when we consider the adverse
impact of air contaminants on one of our most sensitive and precious
populations--our nation's children. Because they are still developing
and spend more hours exercising outdoors, air quality has a greater
impact on them. EPA recently published a study entitled, America's
Children and the Environment (February 2003), which contains extremely
disturbing data related to air pollution and children. For example, the
report concludes the following:
--in 2001, approximately 15 percent of children lived in counties in
which the one-hour ozone standard was exceeded on at least one
day per year;
--in 2001, nearly 40 percent of children lived in counties that
exceeded the eight-hour ozone standard;
--in 2001, approximately 25 percent of children lived in counties
that exceeded the PM2.5 particulate matter standard;
--in 1996, all children lived in counties in which the combined
estimated concentrations of hazardous air pollutants exceeded
the 1-in-100,000 cancer risk benchmark; approximately 95
percent lived in counties in which at least one HAP exceeded
the benchmark for health effects other than cancer;
--in 1999-2000, about 8 percent of women of child-bearing age had at
least 5.8 parts per billion of mercury in their blood (children
born to women with blood concentrations above that number are
at some increased risk of adverse health effects); and
--between 1980 and 1995, the percentage of children with asthma
doubled, to 7.5 percent, and by 2001, 8.7 percent of all
children had asthma.
The magnitude of the air quality problem and the associated health
effects make it clear that significantly increased funding for the
control of air pollution should be a top priority.
EXPENDITURE OF ADDITIONAL FUNDS
STAPPA and ALAPCO recently collected information from their members
to learn about funding priorities for state and local air pollution
control programs. The report we compiled presents valuable information
about the highest priorities of state and local agencies and how they
would spend additional federal grant funds. We provided you this report
when it was completed and would be happy to supply you with an
additional copy if you wish.
Among the general activities that state and local air agencies
identified as their highest priorities, and those on which they would
spend increased grant funds, are efforts addressing hazardous air
pollutants; compliance, fine particulate matter, especially diesel
particulates; inspections; monitoring; improvements in data, including
maintaining and improving infrastructures, emission inventories and
modeling; haze and visibility monitoring; and outreach and education
for the public and regulated community. Depending on what the high-
priority issues in their areas are, state and local agencies identified
a range of specific activities to which they would target a grant
increase. These included the following, among others:
--improve emission inventories of toxic air pollution;
--increase the frequency of inspections of major and minor sources;
--meet the various federal and public expectations under Section 112
(air toxics);
--expand criteria pollutant monitoring;
--improve risk assessment capacity;
--reduce concentrations of fine particulates;
--increase public outreach efforts;
--improve small business compliance assistance;
--purchase replacements for equipment that has outgrown its expected
usage;
--increase the number of air toxics monitoring locations to better
characterize baseline concentrations and localized impacts; and
--improve modeling tools to determine emission reductions needed.
State and local air agencies' need for increased grants is very
great; there are many critical activities that are currently
underfunded. Many of these activities are the foundation of our air
quality program and are, therefore, essential. Without additional
federal grants, and the flexibility to target them to the activities
that are most appropriate in individual states and communities, state
and local air agencies will find it increasingly difficult to obtain
and maintain healthful air quality.
EPA'S BUDGET
Finally, notwithstanding the essential contributions of state and
local air agencies to air quality, the federal government's job is
critical as well. We need a strong and effective EPA to carry out its
responsibilities if we are to achieve and maintain healthful air
quality. Therefore, we recommend that Congress provide adequate funding
for EPA so that the agency can continue its efforts related to
particulate matter; mobile sources; national emission standards,
including toxic air pollutant standards; training; health research and
risk estimates; and modeling.
CONCLUSION
We must always keep in mind that the most valuable asset our
nation can ever have is a healthy population and a clean environment.
In working to achieve our clean air goals, protecting these assets must
be our highest priority. Accordingly, we strongly recommend and
urgently request that Congress increase federal grants to state and
local air quality agencies under Sections 103 and 105 of the Clean Air
Act by $25 million in fiscal year 2004.
Thank you very much for this opportunity to provide you with our
testimony. Please contact us if you have questions or require any
additional information.
______
PREPARED STATEMENT OF THE PATH INDUSTRY STEERING COMMITTEE
Mr. Chairman and Members of the Subcommittee, my name is Michael
Chapman, and I am a home builder from Santa Fe, New Mexico. As Chairman
of the Industry Steering Committee for the Partnership for Advancing
Technology in Housing (``PATH'') program, I welcome the opportunity to
submit testimony in support of continued funding for the PATH
initiative at the fiscal year 2001 level of $10 million.
First, let me thank you, Mr. Chairman, as well as Ranking Democrat
Senator Mikulski and all the members of this subcommittee for your
foresight and leadership in helping to support this program. Second, I
would like to point out that the current HUD leadership has not put the
PATH program in the Administration budget, making it necessary for the
direction to come from this committee to ensure continued funding.
Although I can't explain the rationale for HUD's position, PATH is
clearly within the congressional mandate embodied in Title V of the
basic HUD statute, that the
``Secretary shall require, to the greatest extent feasible, the
employment of new and improved technologies, methods, and materials in
housing construction, rehabilitation, and maintenance . . . with a view
to reducing costs, and shall encourage and promote the acceptance and
application of such advanced technology, methods, and materials by all
segments of the housing industry''.
It is a goal of the Industry Steering Committee to educate the HUD
leadership as to the importance of this program to the housing
industry.
The PATH program seeks to accelerate the creation and widespread
use of advanced technologies in order to improve the quality,
affordability, and durability of our nation's housing stock. A recently
released report by the RAND Science and Technology Policy Institute
makes a compelling case for federal investment in housing R&D programs
such as PATH. It has long been recognized that housing is a major
driver in the economy, and as such, innovation in housing has
significant economic ramifications. The report states that ``innovation
contributes positively to increased productivity and provides other
benefits to all who are involved . . . [including] a broad range of
housing industry participants from homebuilders to manufacturers,
insurers, regulators, homeowners, and others.'' You should also know
that the PATH program money is leveraging $5-6 million of private
sector investment in program activities.
Now in its fifth year of funding, the accomplishments of the PATH
program are real and demonstrable, from funding for basic research
activities at Universities to industry efforts at technology transfer.
PATH UNIVERSITY RESEARCH
Due entirely to PATH and the interagency co-operation it has
fostered, universities now have the only national research grant
program for faculty in housing technology, and the only university
program in housing technology in US history. HUD and NSF are
collaborating on the PATH-NSF ``Program Awards in Housing Technology''
which provide funding to spur innovative basic research so researchers
in universities and academic institutions can bring new conceptual
approaches to the homebuilding community. PATH fosters this dedication
and innovation by working directly with universities, connecting
members of the academic research community with each other and to the
housing industry. PATH makes it clear to Federal and industrial
stakeholders that quality research on housing is being done in
America's institutions of higher learning. To date, 28 universities
have benefited from the Program awards, and numerous other faculty are
starting to focus their research agendas for the benefit of America's
housing. This includes work as varied as manufactured housing factory
streamlining at Michigan State, studies of new house panel systems and
information technologies at Virginia Tech, and new multifamily
development systems at the University of Central Florida. Over the long
term this will be of enormous benefit to housing, both in producing
research results and in engaging students in housing technology
curricula.
PATH GOVERNMENT/INDUSTRY COLLABORATION
The inability to accurately determine the durability or predict the
``service life'' of building materials exposed to outside weathering
continues to be major barrier to innovation in housing. This is clearly
illustrated by the dilemma faced by a manufacturer of a new product and
the willingness of consumers to purchase this product. The manufacturer
either can wait 5-20 years to fully develop the durability data from
existing methods, or can introduce the product to the market without
reliable durability data and expose the corporation to potentially
significant liability.
The service life prediction problem extends far beyond the housing
industry. It encompasses everything from plastic toys for children, to
coatings for automobiles and orbiting satellites. Despite the obvious
need for improved service life prediction, it is one of a handful of
scientific problems that has not experienced significant progress over
the last 100 years. This problem has proven too complex to address with
the resources of any individual entity such as a university laboratory
or single corporation. PATH has recognized, facilitated and invested in
a unique public/private sector partnership led by the Commerce
Department's National Institute of Standards and Technology (NIST). The
partnership includes four federal agencies, the Smithsonian Institution
and eighteen major U.S. corporations. This multidisciplinary public-
private approach is leveraging knowledge discovered in skin cancer
research and applying it to measuring and predicting the weathering of
building materials.
This NIST-led approach has developed a device known as ``SPHERE''
(Simulated Photodegradation by High Energy Radiant Exposure) which is
illustrated in a separate handout. SPHERE compresses the time required
to evaluate a material's response to weathering in two ways: first, it
operates 50 times faster than outdoor exposure, and second, it can
accommodate more than 500 samples distributed into as many as 32
specimen chambers with known UV, temperature, and humidity conditions.
Each chamber can generate exposures similar to a Texas summer dawn, a
North Dakota winter night, a mid-summer Florida afternoon and a
California sunset, plus up to 28 other environments, all at the same
time. Materials exposed to the SPHERE's UV light for one day receive
the equivalent of 50 days of sunlight.
Although NIST is still in the early stages of this research, the
SPHERE has already challenged long-held beliefs about the weathering of
materials. For example, it is widely believed that paint fails through
a process where it wears away due to intense sunlight exposure. This
PATH-sponsored research has shown that, in reality, the coating fails
through the formation of pits. Shown in another handout at an early
stage of degradation, these pits are just one-twentieth the width of a
human hair. They are large enough to breach the coating, yet small
enough that the coating appears defect free to the eye. Surprisingly,
these damaging pits are formed only when sunlight and water (humidity)
are combined, and not just by intense sunlight.
This result plus others embolden the private-sector partners to
believe that this PATH research is on the cusp of fundamentally
changing the methods used to predict durability. The ability to rapidly
and accurately predict in-service performance allows manufacturers to
deliver innovative products more quickly into the housing and other
markets.
This innovation will take many forms. Our private sector partners
are actively considering two innovations. The first is materials
specifically formulated for local climate durability. The second is
tools enabling builders, owners, operators and even homeowners the
ability to calculate the economic consequences of particular building
material or formulation choices in constructed facilities.
PATH TECHNOLOGY SCANNING
PATH has spent considerable time searching outside of the home
building industry to identify promising technologies that could help
meet the program's goals. Summaries of the findings have been published
and widely distributed (see handouts). Dozens of technologies that are
potentially applicable to home building have been identified. For
example, the U.S. military is involved in research to develop fabric-
based materials that can transport power and signals. These types of
breakthroughs could have a significant impact on the development of
panelized construction for homes by providing highly durable materials
that can have combined functions, such as wall coverings and power. On
the private sector side, the composite materials industry is now
developing materials that can serve as both the structure and the
finish surface on a wall, floor, or roof. These are exciting
developments. Our challenge is to work with the manufacturing and
building communities to realize their potential and bring them into the
building process.
PATH TECHNOLOGY ROADMAPPING
The objective of PATH technology roadmapping is to identify
technological research in home building and serve as a guide for
research investments by government and industry. The roadmaps identify
the main areas for research and development that can advance the PATH
goals. Roadmapping results are being provided to private sector
interests to guide their technology development and their investments
in research and development. Through this process, new technologies
will be generated and additional research needs will be identified.
PATH initiated the overall roadmapping process during early 2000.
Participation to date includes over 300 builders and remodelers,
housing manufacturers, material and product suppliers, academicians,
researchers, code officials and other stakeholders who identified and
prioritized technologies that hold promise for achieving PATH's goals.
The result is five specific roadmapping activities that are currently
in different stages of development:
--Information Technology to Accelerate and Streamline Home Building
--Whole-House and Building Process Redesign
--Energy Efficiency in Existing Homes
--Technology Roadmapping for Manufactured Housing, and
--Advanced Panelized Construction.
For example in the Advanced Panelized Construction roadmap, an
important first step was to identify materials from other industries
that are stronger, lighter in weight, and more durable; and that could
be used successfully in housing construction. One example is the honey-
comb technology which has been used for decades by the composite
industry to build airplanes, subway cars, and other types of vehicles
because it is strong, lightweight, and durable. Combining this
technology with a durable high-pressure laminate finish could lead to
the next generation of panels for house construction. The next step is
to make the panels more cost effective to produce, and to design for
the integration of utilities, such as electric wiring and plumbing.
PATH AND MANUFACTURED HOUSING
Major strides have been made in the area of manufactured home
innovation. According to the Congressional ``Millennial Housing
Commission'' report, the manufactured housing industry provides 72
percent of the nation's affordable housing. In the past three years,
PATH research has helped develop approaches to eliminate moisture
problems (the underlying cause of mold and material degradation),
improve energy efficiency by more than 20 percent, increase factory
production efficiencies, create more durable foundation systems able to
withstand natural disasters, and expand the cost and quality advantages
of factory manufacturing to a larger portion of the home building
industry. PATH research plays a pivotal role in keeping housing costs
under control for low and moderate income buyers.
FIELD EVALUATIONS
There are over 40 PATH field evaluation projects that have been
completed, are in progress, or are under development. As you can see by
the stars on the map, these projects are distributed across the United
States. I personally participated in a field demonstration in Santa Fe
that utilized technologies that could greatly benefit housing in the
arid western states. In this project we installed a rainwater
collection system as well as a graywater reuse system. These systems
allowed us to downsize the septic system, fully landscape the lots and
even plant a small orchard while saving water.
Another example of PATH's impact is a recently initiated field
demonstration taking place on a Marine base in Oahu, working with the
University of Hawaii and a military contractor to reduce the cost of
steel construction. The U.S. military is particularly dependent on
steel framing for their new homes because of the climates in which they
typically build. In Hawaii, the Formosan termite has made steel framing
a necessity for almost all new housing.
A significant cost barrier inherent in residential steel
construction is in fastening. The typical hammer and nails used in wood
frame construction is extremely quick and efficient. By contrast, the
screws and special fasteners used in steel framing are much more labor
intensive and more expensive. One promising category of fastening
methods is ``clinching''. The PATH Technology Inventory describes
clinching as a method of joining two pieces of sheet metal by pressing
them together into a die that forms a connection. Expensive fasteners
such as self-tapping screws or pins are not required with clinching.
However, the connections need to be field tested for ease of use by the
labor force, laboratory tested for strength and corrosive resistance,
and approved by code officials. Current clinching tools may also need
to be redesigned for this application.
Although the U.S. military is leading the way, the private sector
is quickly following their lead. Hunt Building Company, an El Paso-
based military housing contractor, is working with PATH on field tests
on military housing. A local production home builder in Hawaii is
filling the same role on homes built for the private sector. Both
companies are investing significant resources of their own in the
clinching demonstration, which can potentially lead to lower
construction costs and improved quality. We expect initial results on
this project sometime this fall.
CONCLUSION
In summary, the PATH program has had wide reaching impacts. PATH
has been consistently praised by the National Academy of Sciences in
three evaluation reports. PATH has awarded grants and contract work to
over 60 firms including numerous small and minority businesses,
universities, manufacturers, and trade associations. PATH has leveraged
government funding with private sector investments. And PATH has
created an environment of innovation in an industry that must innovate
to have a strong future. We request your help and support to make the
program continue.
______
PREPARED STATEMENT OF THE NATIONAL ASSOCIATION OF COUNTIES, U.S.
CONFERENCE OF MAYORS, NATIONAL LEAGUE OF CITIES, NATIONAL ASSOCIATION
OF LOCAL HOUSING FINANCE AGENCIES, AND NATIONAL COMMUNITY DEVELOPMENT
ASSOCIATION
Mr. Chairman and Members of the Subcommittee, this statement is on
behalf of the National Association of Counties, the U.S. Conference of
Mayors, the National League of Cities, the National Community
Development Association, and the National Association of Local Housing
Finance Agencies. We appreciate the opportunity to present our views on
fiscal year 2004 appropriations for the Department of Housing and Urban
Development, and in particular, the two priority programs for local
governments--the Community Development Block Grants (CDBG) and the Home
Investment Partnerships program (HOME).
We thank you, Mr. Chairman and Members of the Subcommittee for your
continuing support for these priority local government programs. We
were especially pleased by the $111 million increase in HOME formula
funding included in the fiscal year 2003 omnibus appropriations bill.
Mr. Chairman, local government officials urge you to increase CDBG
formula funding in fiscal year 2004 to $5 billion and HOME formula
funding to $2.25 billion. These programs work, they make a real
difference in people's lives, and it is our sincere hope that they will
be funded at levels that reflect the very real community development
and affordable housing needs that exist across our country.
WHY CDBG IS EFFECTIVE AND CRITICALLY NEEDED
Now in its 29th year, CDBG is arguably the Federal government's
most successful domestic program. CDBG helps communities tackle some of
their most serious community development challenges. The CDBG program's
success stems from its utility, i.e., providing cities and counties
with an annual, predictable level of funding, which can be used with
maximum flexibility to address unique neighborhood revitalization
needs. Based on the fiscal year 2002 CDBG grantee data from the IDIS
system, CDBG provided funding to 187,380 housing units. In addition to
providing funding to housing units, the program created or retained
over 90,000 jobs principally for low and moderate income persons.
The great success of the CDBG program has come through dedicated
practitioners working very hard to ensure good program performance and
timely expenditure of funds. As cities face greater demands on staff to
monitor subrecipients, undertake good effective program planning, the
resources are just not there to get and keep staff properly trained.
There have been no CDBG funding available for technical assistance and
training at the national level or at the local field office level.
Therefore, we ask the Subcommittee to include in this appropriations
bill statutory language for a guaranteed source of funding for HUD and
interested groups to provide technical assistance and training in much
the same way as does the HOME program.
Throughout its history, CDBG has garnered tremendous support from
virtually all sectors, public and private. States and local governments
have seen modest increases in formula funding which has been well
received, however with the completion of the 2000 Census, the
subsequent redistribution of funds, and with the new definition of MSA
that will be incorporated into the CDBG program in fiscal year 2004,
there will likely be an additional 80 to 100 new entitlement cities
added to the program If funding for the CDBG formula program remains at
its current level, all existing cities in the program will receive
cuts. Many cities received substantial cuts resulting in their fiscal
year 2003 allocation, resulting from the 2000 Census data. Should
formula funding levels main stagnant, with approximately 80-100 new
communities to share a shrinking pot, many community development
programs will not receive enough funding to continue to operate.
Therefore, we the locally elected officials, urge the Subcommittee to
provide at least $5 billion in formula grants for CDBG in fiscal year
2004.
HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM
The HOME Investment Partnerships (HOME) Program is also an
effective block grant program; providing affordable, decent, and safe
housing to thousands of families across the country. According to
cumulative HUD data, since 1992 HOME has helped to develop or
rehabilitate over 718,000 affordable homes for low- and very-low income
families. Ninety percent of the HOME funds used for rental housing must
be targeted to families with incomes at or below 60 percent of the area
median. The balance may assist those with incomes up to 80 percent of
the median income. The majority of HOME funds have been committed to
housing that will be occupied by very low-income people and a
substantial amount will assist families with incomes no greater than 30
percent of median. As of the end of February 2003, more than 84 percent
of HOME assisted rental housing was benefiting families at or below 50
percent of area median income. Forty nine percent of all home-assisted
rental housing (including tenant-based rental assistance) was helping
families with incomes at or below 30 percent of area median income.
HOME funds also help low- and very-low income families realize the
dream of homeownership by providing for construction and rehabilitation
of housing as well as providing the down payment and or closing cost
assistance in the form of second mortgages necessary to bridge the gap.
Since 1992, HOME funds have been committed to 140,170 homeowner units,
with an additional 270,258 household receiving homebuyer assistance.
HOME is cost effective and provides the gap financing necessary to
attract private loans and investments to projects. For each HOME
dollar, $2.92 of private and other funds has been leveraged since the
program's inception. This clearly illustrates the effective and
judicious use of HOME funds by participating jurisdictions.
We are concerned that there is an increasing use of set-asides
within HOME. We note that the Bush Administration has proposed a new
$25 million innovative lead hazard demonstration program within HOME.
We prefer the new lead hazard grant program that was funded in the
fiscal year 2003 omnibus appropriations bill, aimed at communities with
the highest lead hazard abatement needs, to the Administration's HOME
set-aside. We support the Administration's proposal to fund housing
counseling as a separate program, instead of as a set-aside under the
program. We hope that this trend continues with other set-asides under
HOME.
We greatly appreciate the increase of $111 million in formula
funding for the program in fiscal year 2003. However, with the 2000
Census data, approximately 20 new participating jurisdictions will
become eligible to receive HOME funds in fiscal year 2004, thereby
eroding this increase in formula funding. We, therefore, urge you to
fund the HOME program in fiscal year 2004 at a level of at least $2.25
billion in formula grants.
SECTION 108 AND BROWNFIELDS
We have serious concerns about the Administration's decision to
zero out several important economic development tools in the fiscal
year 2004 budget proposal, including the Section 108 loan guarantee
program and the Brownfields Economic Development Initiative (BEDI)
program. These programs fund much-needed investment in our communities,
helping to create jobs and reclaim contaminated sites that can be made
productive again. The Section 108 program provides communities with a
source of financing for economic development, housing rehabilitation,
public facilities, and large-scale physical development projects. BEDI
annually provides $25 million in grants to communities for brownfields
projects focused on economic redevelopment. In its fiscal year 2004
budget, the Administration has proposed to shift all responsibility for
the redevelopment of brownfields to the EPA. The EPA focuses on
assessment and remediation of contaminated sites, not the redevelopment
of the site, which is where HUD's expertise lies. We request that the
BEDI program remain at HUD and that you follow the Administration's
original proposal and fund BEDI at $50 million for fiscal year 2004. We
ask you to fund Section 108 at its fiscal year 2003 level.
RENEWAL OF EXPIRING SECTION 8 RENT SUBSIDY CONTRACTS AND BLOCK-GRANTING
OF SECTION 8
Mr. Chairman, we commend the Subcommittee and the Congress for
fully funding all expiring tenant-based and project-based rent subsidy
contracts in fiscal year 2003 as in previous years. We urge you to do
the same this year. The need for affordable housing continues to grow
as housing prices increase faster than wages for low-income Americans.
We note, too, that the Administration has proposed converting the
Section 8 program into a block grant and turning program administration
over to the states. We are strongly opposed to this proposal. The
Section 8 voucher program is a highly cost-effective, market driven
program. Though voucher utilization has become more difficult in recent
years, a recent survey by leading public housing and private landlord
groups shows that local Section 8 voucher administrators have adapted
and utilization rates have gone up 6 percent in the last year. Moreover
Section 8 is not only a successful means of providing decent, safe and
affordable housing in its own right, but it is also an important
lynchpin in supporting a wide variety of other housing programs such as
homeless grants, HOPE VI and homeownership. We are also concerned that
block granting will result in a reduction in the number of families for
which the federal government will provide assistance. We do not believe
that building a larger state bureaucracy is the most effective means of
moving Housing Choice Voucher funds to the citizens who need them. We
urge the Congress to reject this proposal.
HOMELESS HOUSING FUNDING
Mr. Chairman, we support a funding level of $1.32 billion for
homeless housing programs as proposed by the Bush Administration. We
have been working with the authorizing committees to craft legislation
converting the McKinney Act's homeless housing programs into a pure,
formula-driven block grant program, like the CDBG and HOME block grant
programs. In order for such a program to give sufficient funds to
communities to carry out meaningful projects at the local level, it
needs an appropriation of at least $1.3 billion. We support the
existing Continuum of Care planning process and would recommend that
this process be codified as part of the block grant. We also urge full
funding of Shelter Plus Care contract renewals. We also support the
Administration's proposed $50 million Samaritan Initiative. This
initiative is intended to address the most pressing homeless issue--
chronic homelessness--to be joined with $10 million from the Department
of Health and Human Services and the Veteran's Administration to fund
services, such drug abuse treatment and primary health care for this
population.
LEAD HAZARD REDUCTION
According to HUD, approximately 25 million housing units have lead
hazards. Of this number, 5.6 million house children under the age of
six. At least 1.6 million of these units house low-income families with
children under the age of six, the population most at-risk of elevated
blood lead levels. This is a serious health problem that must be
remedied.
Programs such as CDBG and HOME assist this population with their
rehabilitation needs, but these funds can only go so far. We want to
thank Congress for providing $50 million for a new lead hazard
reduction program that will begin in fiscal year 2004. This program is
the first step to providing funding to eradicate lead-based paint from
the nation's housing; however, because of the cost of abatement of lead
hazards, much more funding is needed. We urge Congress to provide $75
million for this program in fiscal year 2004, the same level as
proposed initially by the Senate in fiscal year 2003. We also ask that
Congress re-shape the program into a formula-allocated block grant to
those areas that are most in need of the funds. A competition is too
time-consuming for both grantees and HUD. It also doesn't provide the
money to localities in a quick fashion.
PUBLIC HOUSING
We note that the President's budget proposes to zero out the HOPE
VI demolition and replacement of severely distressed public housing
program. We oppose this recommendation. The HOPE VI program eliminates
distressed public housing and replaces it with mixed-income
developments. It harnesses the private sector, working in partnership
with public housing agencies. Since 1993, the $3.9 billion appropriates
for this program has resulted in the demolition of some 54,000 units
and another 45,000 are planned for demolition.
The fiscal year 2004 budget also proposes to fund the public
housing operating program at $3.57 billion, down from the $3.6 billion
appropriated in fiscal year 2003. However, the fiscal year 2003
appropriation had to make up for a $250 million shortfall from fiscal
year 2002. This left a shortfall in fiscal year 2003 that will have to
be made up in fiscal year 2004. We urge the Subcommittee to provide
sufficient additional funding in fiscal year 2004 to solve the
shortfall going forward. In addition, with the continued shortfall,
there is no opportunity to use operating funds to fund the drug
elimination efforts envisioned when that program was terminated two
years ago.
ADMINISTRATION'S TAX FREE DIVIDEND PROPOSAL
Though the issue is not before this Subcommittee, we want to advise
you of our deep concern over the unintended adverse impact of the
Administration's tax-free dividend proposal on two key affordable
housing resources--the Low-Income Housing Tax Credit and tax-exempt
housing bonds. According to an analysis of the proposal by Ernst &
Young, the dividend proposal, if enacted, would result in a loss of
40,000 units annually or 35 percent of the 115,000 currently produced.
It would also add 25 to 50 basis points in additional borrowing costs
to issuers of tax-exempt bonds, including housing bonds. This is a
serious loss of critical housing units at a time of growing needs of
households with worst-case housing needs--paying more than 50 percent
of their income for rent or living in substandard housing. We are
working with the tax-writing committees to protect the tax credit and
bonds from the unintended impact of the proposal as it works its way
through the legislative process. We urge the Subcommittee to join us in
that effort.
FAITH BASED PROPOSED RULE
The HUD programs administered by local governments have enjoyed a
long and wonderful partnership with faith-based entities across the
nation. Without the support of these and other non-profit groups, the
meals on wheels programs, community center activities, day care and
other much needed services would not be part of the daily lives of many
of our citizens. HUD's proposed faith-based rule implies that these
great partnerships between cities and their faith-based community--that
have come to be common place--need federal intervention to ensure
greater success. The locally elected officials and the community
development and housing practitioners that administer HUD programs want
you to know that we greatly support faith-based groups working with us
in our communities and that there is no additional incentive required
to strengthen the powerful relationships that currently exit.
CONCLUSION
Mr. Chairman, local government officials believe that a strong
Federal role in housing and community development programs must
continue. Since the Housing Act of 1937, Congress has enunciated, and
repeated in subsequent housing acts, that, as a matter of national
policy, the Federal government has an obligation to assist states and
local governments in providing decent, safe and sanitary housing for
lower income households. Perhaps, Congress said it best in a
``Declaration of National Housing Policy'' included in Section 2 of the
Housing Act of 1949:
``The Congress hereby declares that the general welfare and
security of the nation, and the health and living standards of its
people, require housing production and related community development
sufficient to remedy the serious housing shortage, the elimination of
substandard and other inadequate housing through the clearance of slums
and blighted areas, and the realization as soon as feasible, of the
goal of a decent home and suitable living environment for every
American family.
We submit to you that, while progress has been made toward this
goal, it has not been fully achieved. The Federal government must
continue its commitment to this National Housing Policy, backed by the
necessary resources with which to continue the battle against
neighborhood deterioration and a decaying housing stock.''
Mr. Chairman, we look forward to working with you and the
Subcommittee in adequately funding HUD's Housing and Community
Development Programs for fiscal year 2004. Thank you.
______
PREPARED STATEMENT OF THE AMERICAN LEGION
Mr. Chairman and Members of the Subcommittee, thank you for the
opportunity to submit testimony reflecting the views of the 2.8 million
members of The American Legion regarding the Department of Veterans
Affairs' (VA) fiscal year 2004 budget request. As veterans' advocates,
it is our job to ensure that VA is funded at a level that is adequate
to fulfill the mandate ``to care for him who has borne the battle, his
widow and his orphan.''
On April 11, the House and Senate passed the budget resolution
which lays out the funding levels for the appropriations of the federal
government and it's agencies. Included in this resolution is an
understanding that the VA mandatory levels (Compensation and benefit
programs) will not be subject to budget offsets in fiscal year 2004.
The Senate and House agreed to set the funding level for VA at $63.8
billion in budget authority. The Conference also agreed to provide
within that level $30 billion for discretionary spending for fiscal
year 2004. This is a $3.5 billion increase from the levels appropriated
for 2003, but is slightly less than the Administration's budget
request.
The American Legion is adamant that VA is provided full funding at
these levels. In the wake of Operation Iraqi Freedom it is clear that
VA will have a vital role in providing health care and transitioning
programs to our returning service members. The ability of the VA to
provide these necessary and earned benefits and programs will be
incumbent on the funding provided by Congress.
For over a decade, The American Legion has advocated allowing
veterans to spend their health care dollars on the health care system
of their choice. The American Legion believes the Veterans Health
Administration (VHA) can efficiently expand to meet the health care
needs of the men and women who have honorably served this nation in its
armed forces--in war and in peace.
The American Legion believes the level of funding proposed in the
fiscal year 2004 budget request may meet the President's goals, but
will lead to over 1.2 millions veterans leaving the system. The
American Legion also has reservations about the budgetary impact on
other aspects of VA operations, to include the Veterans Benefit
Administration (VBA).
MEDICAL CARE
The American Legion recommends $24.5 million for direct medical
care in fiscal year 2004; however, strongly recommend to add, rather
than offset, MCCF and authorize VA to bill, collect, and retain third-
party reimbursements from the nation's largest health insurance
program--Medicare--for the treatment on nonservice-connected medical
conditions on a fee-for-service basis.
VA's integrated health care delivery system is not only the largest
health care provider in the nation, but it has established itself as a
formidable leader in the health care industry. Veterans receive quality
health care and are choosing VA as their health care provider in record
numbers. VA is currently struggling to meet their needs and, with VA's
proposed fiscal year 2004 budget, it will continue to struggle.
The President's fiscal year 2004 budget request introduces several
proposals to generate increased revenues from the pockets of veterans
through an enrollment fee, copayments and third-party reimbursements.
According to VA, these proposals will reduce the resource demand by
$1.3 billion collectively and hopefully encourage 1.2 million veterans
to leave the system. The budget request also seeks management savings
of over $1.1 billion. This adds up to a $2.4 billion offset to the
requested $25.4 billion budget for medical care.
The American Legion is concerned with several of the budget
proposals:
--Limit enrollment.--VA proposes to continue the suspension of
enrollment of new Priority 8 veterans. These veterans have
incomes above $24,644 for a single veteran and above the
Housing and Urban Development (HUD) geographic means test
level, to include noncompensable, 0 percent service-connected
veterans. Although these service-connected veterans may seek
health care for their service-connected disability, they are
prohibited from enrolling for treatment of or prescriptions for
any nonservice-connected medical conditions.
The American Legion continues to disagree with this recent
decision. We believe denying veterans access to VA health care,
particularly while we prepare to go to war, is unacceptable.
Many recently separated veterans would fall into this Priority
Group. By denying health care to Priority Group 8 veterans, VA
is sending the message that these veterans are not welcomed,
even if they have the expendable income or private health
insurance coverage that VA can bill for the cost of their
nonservice-connected medical treatment. In some cases, a simple
``zip code'' is the difference between being listed as a
Priority Group 7 or 8--not their honorable military service.
In order for more veterans to access VA health care,
additional revenue streams must be generated to supplement the
discretionary funding. The American Legion strongly advocates
Congress authorize VA to bill, collect, and retain third-party
reimbursements from CMS for treatment of Medicare-allowable,
nonservice-connected medical conditions of Medicare-eligible
veterans. Since Medicare is a Federally mandated, pre-paid
health insurance program, The American Legion believes
Medicare-eligible veterans should be allowed to choose their
health care provider.
--Assess an annual enrollment fee.--VA proposes a $250 annual
enrollment fee for non-service-connected (NSC) Priority 7
veterans and all Priority 8 veterans. Priority 7 veterans have
incomes above $24,644 for a single veteran and below the HUD
geographic means test level, to include noncompensable, 0
percent service-connected disabled veterans. This annual
enrollment fee would apply even if the veteran has third-party
health insurance that reimburses VA for the treatment of
nonservice-connected medical conditions. This annual enrollment
fee would apply even if the veteran were willing to make
copayments for treatment of nonservice-connected medical
conditions, pharmacy, and specialized care (like long-term
care). However, this annual enrollment fee does not guarantee
timely access to quality health care. According to President
Bush and Secretary Principi, these veterans are their primary
focus.
The American Legion cannot support this proposal because it
is designed to discourage the enrollment of veterans based
solely on their income and not their honorable military
service. Furthermore, it does not guarantee these veterans
timely access to quality health care. There are Priority Group
7 and 8 veterans with military awards and decorations for
wartime service that, for the grace of God, were not seriously
wounded.
The American Legion would urge Congress to reject this
proposal just as it did the Administration's plan last year to
charge Priority Group 7 veterans a $1,500 deductible.
--Change the veteran's share of outpatient and pharmacy copayments.--
This proposal entails reducing the pharmacy copayment burden
for Priority 2-5 veterans, while increasing Priority 7 and 8
pharmacy copayments from $7 to $15. It also increases
outpatient primary care copayments from $15 to $20 for all
Priority 7 and 8 veterans.
While The American Legion applauds the reduction of the
pharmacy copayment for veterans in Priority Groups 2-5, the
recent increase in copayments from $2 to $7 was accompanied by
a decrease in the outpatient copayment from $50 to $15. The
American Legion would rather VA seek reimbursements from CMS
for all enrolled Medicare-eligible veterans being treated for
nonservice-connected medical conditions, before trying to
balance the budget on the backs of Priority Groups 7 and 8
veterans.
--Require reimbursement for services provided to health maintenance
organization and preferred provider organization members.--This
proposal seeks to establish VA as a preferred provider for
members of Health Maintenance Organizations (HMOs) and
Preferred Provider Organizations (PPOs) and would obligate
these organizations to reimburse VA for health care provided to
their members.
The American Legion believes this change would help VA
increase third-party reimbursements. The fact that VA currently
cannot bill HMOs and PPOs is unfair considering VA treats many
veterans who belong to these organizations. The American Legion
would welcome this change; however, it seem odd to mandate
private sector insurance plans to recognize VA as a preferred
provider and not mandate CMS to recognize VA as a Medicare
provider, especially since VA meets or exceeds most of CMS' own
quality performance standards. If CMS' goal is to provide its
beneficiaries with the best quality health care, VA should be a
recognized Medicare provider. In fact, CMS Director Scully
claimed before the Presidential Task Force To Improve Health
Care Delivery for Our Nation's Veterans (PTF) that he
encourages veterans to go to VA rather than private health care
providers.
--Change the institutional long-term care services provided to
veterans.--This proposal would allow non-institutional, as well
as institutional workload, in community and State Home Nursing
programs along with VA Nursing to count toward the 1998
capacity level. VA would supposedly expand their total long-
term care capacity by increasing non-institutional long-term
care.
The American Legion believes the proposal will further
stagnate long-term care services. The passage of the Veterans
Millennium Health Care and Benefits Act (Public Law 106-117) on
November 30, 1999, was the first step toward ensuring a
comprehensive long-term care plan for veterans. The American
Legion fully supported this insightful decision by Congress,
especially with the aging veterans' population. It required the
VA to bring the census back to 1998 levels. So far they have
failed to do that. VA has the authority to establish copayments
for nonservice-connected veterans in need of long-term care--a
time in their lives when they and their families desperately
need help from VA. The President and the Secretary want to
reduce the number of long-term care beds without any
recommendations from the PTF or the Capital Assets Realignment
for Enhanced Services (CARES). In fact, the CARES process is
currently not addressing either long-term care or mental health
inpatient needs. The ``market plans'' currently being developed
by each VISN will not be including institutionalized care
involving long-term care or mental health. The American Legion
cannot accept this recommendation.
MEDICAL AND PROSTHETIC RESEARCH
The American Legion recommends $445 million for medical and
prosthetic research in fiscal year 2004.
Two of the biggest challenges facing VA's Medical and Prosthetic
Research Program are facility infrastructure and recruitment and
retention. Like the rest of VHA's buildings, research facilities are in
desperate need of repair. They have been neglected over the years due
to budgetary constraints. Currently, R&D have nearly 30 facilities in
varying states of disrepair. The condition of these facilities impacts
the recruitment and retention of qualified researchers. The ability to
maintain a state-of-the-art facility is vital to retaining talented and
motivated researchers.
The accomplishments of the VA research program cannot be
overstated. The program has been recognized both nationally and
internationally for its efforts toward the betterment of veterans'
lives and advances in their health care. Without proper funding the
program cannot possibly maintain its current level of success. The
American Legion believes VA's budget request for $408 million is
inadequate.
MEDICAL CONSTRUCTION AND INFRASTRUCTURE SUPPORT
MAJOR & MINOR CONSTRUCTION
The American Legion recommends $320 million for major construction
and $240 million for minor construction to make a combined total of
$560 million.
Year after year, needed major and minor construction projects are
not funded, because the money is just not there. A 1998 study conducted
by Price-Waterhouse recommended that VA fund 2 percent to 4 percent of
Plant Replacement Value (PRV) per year and to reinvest in new
facilities to replace aging facilities. The conclusion of this analysis
was that VA's reinvestment rate of .84 percent was significantly lower
than the benchmark of 2 percent. That equates to hundreds of millions
of dollars that conceivably could be used for major construction
projects. Private consultants have been warning for years that dozens
of VA patient buildings were at the highest level of risk for
earthquake damage or collapse, yet funding continues to be woefully
short of what is actually needed to correct this problem. The
President's budget request of $422 million falls well short of funds
needed to ensure the safety of the nation's veterans.
GRANTS FOR THE CONSTRUCTION OF STATE EXTENDED CARE FACILITIES
The American Legion recommends funding of $115 million for this
program.
The State Veterans Home Program is an important adjunct to VA's own
nursing, hospital and domiciliary programs. The American Legion
believes it must continue, and even expand, its role as an extremely
vital asset to VA. This program has proven to be a cost-effective
provider of quality care to many of the nation's veterans.
The American Legion recognizes the growing long-term health care
needs of older veterans and would like to reemphasize the essential
service that the State Veterans' Home Program provides to these
veterans. The program is a viable and important alternative health care
provider to the VA system.
NATIONAL CEMETERY ADMINISTRATION (NCA)
The American Legion recommends $150 million for the National
Cemetery Administration in fiscal year 2004.
The National Cemetery Administration (NCA) honors veterans with a
final resting-place and lasting memorials that commemorate their
service to the nation. More than two million Americans, including
veterans of every war and conflict--from the Revolutionary War to the
Gulf War--are honored by burial in VA's national cemeteries. Nearly
14,000 acres of land are devoted to this formidable mission.
The Veterans' Millennium Health Care and Benefits Act (Public Law
106-117) required NCA to establish six new National Cemeteries. Fort
Sill opened in 2001 under the fast-track program, while the remaining
five, Atlanta, Detroit, South Florida, Pittsburgh, and Sacramento are
in various stages of completion.
Maintaining cemeteries as national shrines is one of NCA's top
priorities. This commitment involves renovating gravesites by raising,
realigning and cleaning headstones and markers. The work that has been
done so far has been outstanding however, adequate funding is key to
maintaining this very important commitment.
STATE CEMETERY GRANTS PROGRAM
The American Legion recommends $37 million for the State Cemetery
Grants Program in fiscal year 2004.
The State Veterans Cemetery Grant Program continues to be a very
popular and much needed program administered by VA. This program was
designed to assist states in providing gravesites for veterans where
NCA is unable to do so. This program is not intended to replace
National Cemeteries, but to complement them. Grants for state-owned and
operated cemeteries can be used to establish, expand and improve on
existing cemeteries.
The State Cemeteries accommodated over 15,000 burials in fiscal
year 2001. In light of the aging veteran population and with deaths
expected to peak at 687,000 in 2006, it is necessary that this program
remain viable. Now is the time to ensure that funding is commensurate
with the mission of the program.
VETERANS BENEFITS ADMINISTRATION
The American Legion is gravely concerned by the proposed straight
line staffing request for the Veterans Benefits Administration's (VBA)
Compensation and Pension Service and for the Board of Veterans Appeals.
There are long-term workload demands associated with the current
backlog of pending claims that will extend well into fiscal year 2004.
VBA acknowledges there will also be a continued influx of new and
reopened claims, based on the enactment of expanded benefit
entitlements by the 107th Congress, including the Combat Related
Special Compensation Pay Program, an expectation of additional
presumptive diseases, and recent precedent decisions of the courts.
Despite assertions of improved quality decision making, the number
of appeals being filed continues to increase as does the number of
appeals requiring further development either by the regional offices or
the Board of Veterans Appeals. The American Legion believes these
organizations will require additional personnel, if they are to achieve
the ambitious service improvement goals promised the nation's veterans
and their families in this budget request.
VETERANS BENEFITS ADMINISTRATION LEGISLATIVE INITIATIVES
VBA's net mandatory funding request reflects the enactment of
several legislative proposals. These include:
--A two-percent COLA in compensation benefits. The American Legion
supports an annual cost-of-living adjustment in disability
compensation and DIC benefits.
--Legislation to overturn the decision of U.S. Court of Appeals for
the Federal Circuit in Allen v. Principi, which held that VA
must pay compensation for alcohol or drug-abuse disabilities,
if they are secondary to a service-connected disability. The
American Legion is opposed to any effort to eliminate or
restrict a veteran's right to compensation for any disability
or disabilities that are determined to be secondary to or a
manifestation of the service connected disability. VA is
responsible for administering the law not making moral judgment
concerning what is or is not misconduct, as it did with the
issue of tobacco-related illnesses. Such legislation would be
an effort to punish certain disabled veterans for their
service-related problems.
--Legislation to pay the full rate of compensation to certain
Filipino veterans and their survivors. The American Legion
continues to support this change in the law to recognize the
military service performed by these veterans during World War
II.
--Legislation to extend the operations of the Manila VA Regional
Office for an additional five years. The American Legion favors
the VA's continued presence in the Philippines, in order to
provide timely service to these veterans and their families.
--Amend the law to extend the time limit for education benefits for
members of the National Guard. Because the National Guard is
now such an integral part of the armed forces, The American
Legion believes this will be a much needed change in the law.
--Amendment of the Montgomery GI Bill to provide for on-the-job
training for certain self-employment training programs. This
will assist veterans in taking advantage of additional training
through self-employment training programs.
--Legislation authorizing the extension of the Education Advisory
Committee.
--Terminate the Education Loan Program. If this program were, in
fact, not being utilized as it was originally intended, The
American Legion would not object to its termination.
--Convert the Homeless Veterans Guaranteed Transitional Housing Loan
Program to grant program. The American Legion has been a strong
supporter of the Homeless Veteran Transitional Housing Program.
The American Legion would have no objection to making it into a
grant rather than a loan guaranty program.
--Elimination of the 45-day rule for Death Pension. The American
Legion has sought the elimination of this restriction, since
enactment of OBRA 90.
--Authorize entitlement to government grave marker or headstone for a
veteran's marked or unmarked grave, effective from November 1,
1990. This will enable the families of thousands of deceased
veterans to obtain a government marker or headstone to reflect
their honorable service to the nation.
--Authorize the payment of the burial plot allowance to state
veterans' cemeteries. The American Legion has long favored this
additional support for the State Veterans Cemetery Program.
Under the new budget format, the request for VBA provides for a
total of $33.7 billion in mandatory funding for compensation, pension,
education, vocational rehabilitation, and other benefit entitlements.
Within this total, $26.3 billion will be required for the compensation
program, $3.3 billion for the pension program, $1.9 billion for
education, and $2.4 billion for the other veterans benefit programs.
This represents an overall increase of $9.8 billion, over fiscal year
2003. Compensation benefits will increase by $1.8 billion reflecting
the proposed two-percent COLA, additional benefit payments as a result
of Allen v. Principi, an increase in diabetes cases, and increases in
the net caseload and benefit payments.
Discretionary funding for VBA's nine business lines totals $1.2
billion. While it provides for an additional 17 FTE for the Education
Program, which is much needed, The American Legion is deeply disturbed
by the lack of any increase in staffing for compensation programs. We
believe this will constrain VBA's ability to address the many
challenges emerging in fiscal year 2003, which will have profound
budgetary and operational implications for the fiscal year 2004 budget.
Given the varied issues that VBA is faced with, it is imperative
that Congress critically evaluate the level of discretionary funding
requested and whether this will enable the regional offices to operate
efficiently and provide timely, quality service that this nation's
veterans expect and deserve. Individuals currently on active duty must
also be assured that VA will not only be ready and willing to assist
them, but have physical capacity to provide them the timely, quality
service they expect and deserve, without compromising current
operations or benefits programs.
Over the course of fiscal year 2002 and fiscal year 2003, VBA has
been able to make substantial progress toward realizing Secretary
Principi's goal of a pending case backlog of 250,000 cases with an
average processing time of 100 days by the end of September 2003. In
March 2002, the regional office backlog peaked with over 423,000
pending cases requiring rating action. 40 percent of these cases were
over six months old. There were also 147,000 case requiring some other
type of action. Only 12 percent were six months or older. In addition,
there were approximately 107,000 cases in appellate status. Of these,
over 20 percent were cases that had been remanded by the Board of
Veterans Appeals for further required development and readjudication.
In human terms, there were over 670,000 claimants waiting and waiting
for action on their case. Those with remanded appeals would have been
waiting two to three years or longer.
According to VA data, by January 2003, the number of cases awaiting
rating action had been reduced to 330,300 with only 32 percent older
than six months and the number of cases requiring some other type of
action was down to 81,500 but over 28 percent were older than six
months. However, the number of cases in appellate status had grown to
over 122,000. These statistics give a false impression of improvement.
The drop in the claims backlog has been achieved largely at the expense
of those whose claims were on appeal at the regional offices. VBA's
efforts and resources were focused almost exclusively on pending
claims, while appeals, including remands, were virtually ignored, since
there was no work credit toward the station's production goals. In
response to The American Legion's criticism concerning the lack of
action on appeals and the hardship imposed on disabled veterans,
regional offices have, within the last several months, begun to address
their appellate workload and pending remands, in particular.
The backlog of claims and appeals are, in our view, a symptom of
unresolved systemic problems that have for years adversely affected the
claims adjudication and appeals process. These problems include
frequent decision-making errors, lack of compliance with the VCAA's
notice and development requirements, the absence of personal
accountability, ineffective quality control and quality assurance, and
inadequate training. The current work measurement system does not
provide reliable, accurate data upon which to assess VBA's real
resource needs. VBA is faced with a serious dilemma. While endeavoring
to address these thorny quality-related issues, the regional offices
are, at the same time, aggressively trying to process claims faster.
From the results, it appears they still have not found a way to
successfully balance these competing priorities. The American Legion
remains concerned by the effects of VBA's emphasis on production rather
than quality decision making, i.e., ensuring full and complete
development with a decision that is fair and proper--the first time.
This results in cases continuing to churn through the system, for the
sake of an artificial goal.
The straight line staffing level requested for fiscal year 2004 is
based on the assumption that, with the realization of the Secretary's
backlog reduction goal, VBA would be able to more effectively address
the many quality-related problems as well other long-outstanding
issues. Given past performance, The American Legion believes this is an
unrealistic strategy and will not afford VBA the flexibility to cope
with current workload demands, let alone some unanticipated
contingency.
The American Legion believes that an increase in staffing in the
compensation and pension programs for fiscal year 2004 is both prudent
and necessary. This reflects the increasingly complex nature of the
claims and appeals process, the volume of additional work anticipated
in fiscal year 2003-2004, and the ongoing need to rebuild the core
adjudication staff to replace the increasing number of experienced
decision makers who are retiring within the next one to two years.
APPEALS
Staffing at the Board of Veterans Appeals in fiscal year 2004 will
decrease by 3 FTE from the fiscal year 2003 level to 184 FTE. The
proposed reduction in personnel is predicated on the expected lower
volume of incoming new appeals and returning remands. However, given
the number of appeals currently in the system and regional offices'
continuing quality problems, The American Legion is concerned that the
Board's new Development Program will require additional support both
from the Board and from the C&P Service.
Beginning in February 2002, the BVA was given the authority to
further develop appeal cases rather than remanding them to the regional
office. 15 FTE were assigned to this unit. By the end of fiscal year
2002, of the 17,231 appeals decided, the Board had remanded 3,328 or 19
percent. This figure is somewhat misleading, since, in addition to the
regular remands, the Board has undertaken development of over 9,000
cases that would have previously required a remand back to the regional
office for further needed development and readjudication. Staffing for
this unit is 32 FTE. The goal of the program is to ensure greater
attention to full due process and quality decision-making, while
providing claimants more timely action on the appeal. However, without
a substantial improvement in the quality of regional office decisions,
the BVA will have to assume more and more of the regional office's
development and adjudication workload, which will require additional
staffing resources.
The American Legion is concerned that regional office's focus on
speed and production versus quality and propriety is directly
contributing to the growth of the appellate backlog, which now tops
123,000 appeals. Each of these cases represents a veteran or a
veteran's family who, after many months of waiting, is very
dissatisfied with the decision they received on their claim for
disability or death benefits. They will wait many more months before
their case gets before the Board. In 2002, the average appeals
resolution time was 731 days. This is projected to improve to 590 days
in fiscal year 2003 and to 520 days in fiscal year 2004.
EDUCATION
The American Legion commends the increased-funding request for
educational programs and support staff for the fiscal year 2004 budget.
The American Legion deeply appreciates Congress' attempts to provide
for a stronger Montgomery GI Bill, (Chapter 30) including an increase
in the monthly entitlement rate for active duty members from $900 to
$985. However, due to the increased use of Reservists for homeland
security and various overseas commitments around the world, there needs
to be a significant increase in their monthly entitlement rates that
are currently below $300 a month.
The American Legion also acknowledges the proposed increase in
benefits to children and spouses of veterans who died of a service-
connected disability or whose service-connected total disability is
rated permanent, under Chapter 35 of title 38, United States Code.
Having a stronger dependent/survivor educational benefit program is
necessary to provide the nation with the caliber of individuals needed
in today's all volunteer Armed Forces. Without providing incentives,
the military of the 21st century will be hard pressed to carry out its
mission.
VOCATIONAL REHABILITATION AND EMPLOYMENT
The American Legion is pleased with the funding level requested for
the Vocational Rehabilitation and Employment program in fiscal year
2004. The American Legion has always been a strong supporter of the
services this program provides eligible service-disabled veterans. The
training and education assist disabled veterans in becoming employable
and helps them obtain and maintain suitable employment. The American
Legion is pleased by the emphasis placed on the new Employment
Specialist position as a means of redirecting the program toward the
veteran's employment. During this time of economic uncertainty,
meaningful employment should never be denied to veterans, especially
those with a service-connected disabling condition.
CONCLUSION
Mr. Chairman and Members of the Subcommittee, The American Legion
has outlined many issues in this testimony today. We believe all of
these issues are important and we are fully committed to working with
each of you to ensure that America's veterans receive the entitlements
they have earned. Whether it is improved accessibility to health care,
timely adjudication of disability claims, improved educational benefits
or employment services, each and every aspect of these programs touches
veterans from every generation. Together we can ensure that these
programs remain productive, viable options for the men and women who
have chosen to answer the nation's call to arms.
Thank you for allowing The American Legion the opportunity to
submit testimony.
______
PREPARED STATEMENT OF THE AMERICAN SOCIETY OF MECHANICAL ENGINEERS
INTERNATIONAL
NATIONAL SCIENCE FOUNDATION
The National Science Foundation (NSF) Task Force of the Council on
Education of the American Society of Mechanical Engineers (ASME
International) is pleased to provide comments on the NSF fiscal year
2004 budget request. This portion of the statement represents the views
of the NSF Task Force, an interdisciplinary committee of the Council on
Education and is not necessarily a position of ASME International as a
whole.
ASME International is a worldwide engineering society focused on
technical, educational and research issues. It conducts one of the
world's largest technical publishing operations, holds some 30
technical conferences and 200 professional development courses each
year, and sets many industry and manufacturing standards.
OVERVIEW
The National Science Foundation plays a critical leadership role in
directing the nation's non-defense related scientific and engineering
research. Through thoughtful and visionary planning, NSF has greatly
contributed to the technological superiority that the United States
enjoys today. ASME shares NSF's broad-based, cross-cutting vision for
basic engineering and scientific research. As such, ASME strongly
endorses the Foundation and its efforts to continually improve and
expand the ``innovative ideas, outstanding people, and cutting-edge
tools'' that comprise the nation's technological and scientific
infrastructure.
The Budget Request for fiscal year 2004 represents a 9.0 percent
increase over the fiscal year 2003 Budget Request, but only 3.2 percent
over the recent fiscal year 2003 Appropriation. Within this request,
funding for the Engineering Directorate would increase to $537 million.
NSF continues to include funding for major initiatives or Priority
Areas in its budget request. The five standing major initiatives will
increase. Information Technology Research will increase to $303
million. Nanoscale Science and Engineering will be raised to $249
million. Increases for Biocomplexity in the Environment to $100
million, Mathematical Sciences to $89 million and for Human and Social
Dynamics to $24 million have also been requested. In addition, NSF has
identified a new thrust area for fiscal year 2004 called Workforce for
the 21st Century for which $9 million in funds have been requested.
Though not specifically identified as such, the Math and Science
Partnerships (MSP) is essentially a seventh initiative area. This
program began in fiscal year 2002 as part of President Bush's No Child
Left Behind paradigm for K-12 math and science education.
TABLE 1
[Dollars in millions]
----------------------------------------------------------------------------------------------------------------
NSF Agency Wide Engineering (ENG)
-----------------------------------------------------------------------
Fiscal Fiscal Fiscal Fiscal
Year 2003 Year 2004 Percent Year 2003 Year 2004 Percent
Request Request Change Request Request Change
----------------------------------------------------------------------------------------------------------------
Total Budget............................ $5,028.22 $5,481.20 9.0 $487.98 $536.57 10.0
Salaries and Expenses............... 202.95 225.70 11.2 ( \1\ ) ( \1\ ) ( \1\ )
Inspector General................... 7.70 8.77 13.9 ( \1\ ) ( \1\ ) ( \1\ )
Administration/Management............... .......... .......... .......... 6.47 6.90 6.6
Total Program Budget.................... 4,818.02 5,246.73 8.9 481.51 529.67 10.0
Info. Technology Research........... 285.83 302.61 5.9 11.17 11.17 0.0
Nanoscale Science & Eng............. 221.25 248.99 12.5 94.35 106.85 13.2
Biocomplexity in the Envir.......... 79.20 99.83 26.0 6.00 6.00 0.0
Mathematical Sciences............... 60.09 89.09 48.3 0.91 2.91 219.8
Human & Social Dynamics............. 10.00 24.25 142.5 .......... 2.00 ( \1\ )
Workforce 21st Century.............. ( \1\ ) 8.50 ( \1\ ) ( \1\ ) .......... ( \1\ )
SBIR................................ .......... .......... .......... 83.65 101.15 20.9
Remaining Funds......................... 4,161.65 4,473.46 7.5 285.43 299.59 5.0
----------------------------------------------------------------------------------------------------------------
NSF Budget overview with and without the initiative areas. Comparisons include both agency-wide and the
Engineering Directorate.
\1\ Not applicable.
Comparing the fiscal year 2004 Budget Request with fiscal year 2003
is somewhat problematic given the late passage of fiscal year 2003
appropriations covering NSF. For example, the overall 9 percent
increase over the fiscal year 2003 Budget Request appears positive and
consistent with Congress's goal of doubling NSF's budget in five years
beginning with fiscal year 2004. However, the current request is only
3.2 percent more that the recently passed fiscal year 2003
appropriation. For this analysis, comparisons will be made between the
fiscal year 2003 and fiscal year 2004 Budget Requests. It is important
to note, however, that questions of balance (i.e. balance across the
nation's science and technology research and development portfolio,
balance between initiative driven research and core programs within
NSF, and finally, balance between NSF's traditional basic research
mission and its new math and science education mission) are much more
critical when one considers a 3.2 percent increase versus a 9 percent
increase.
THE TASK FORCE POSITION
The NSF Task Force of ASME's Council on Education continues its
strong endorsement of NSF's leadership role in guiding the nation's
basic research and development activities. Throughout its existence,
NSF has built an outstanding record of supporting a broad spectrum of
research of the highest quality, from ``curiosity-driven'' science to
focused initiatives. This record has been made possible only through
strict adherence to the independent peer review process. ASME
recognizes the importance and timeliness of NSF's initiative areas that
address major national needs for the 21st century. However, as will be
discussed in the next section, it is not clear that an optimum balance
has been achieved.
There are a number of particularly positive items in the fiscal
year 2004 Budget Request, beginning with the planned increase in the
size of graduate fellowship stipends. Ensuring a continuous stream of
well-educated, highly qualified research scientists into leadership
positions is critical to the survival and growth of the nation. In this
respect, ASME strongly endorses NSF's planned increase in stipends for
graduate fellows from $25,000 to $30,000. Making fellowship stipends
attractive to the nation's best and brightest students is certainly a
positive step. This serves to enhance the nation's pool of science and
engineering educators and leaders.
The increase in numbers of graduate fellowships is also especially
positive. In comparison to the fiscal year 2003 Budget Request, it
appears that, in addition to the 20 percent increase in stipends, there
will be a concomitant 10 percent increase in the number of
Fellows supported in fiscal year 2004. NSF is the only federal agency
directly chartered to educate graduate students for research and
development careers. It is therefore imperative that this be a major
priority area in perpetuity. It is interesting to note however that
$89.4 million is requested for the Graduate Research Fellowship (GRF)
program to support 2,200 students in fiscal year 2004 while $42.5
million for the GK-12 Fellowship program will support less than 900
students. It is not clear that the GK12 program has sufficient ``value
added'' to justify its higher cost per student. Nor is it clear that
the correct balance between types of graduate fellowships has been
struck. It is critically important that education-based programs do not
jeopardize the nation's world leadership in basic research.
In general, the Task Force also supports and applauds activities
within ENG. NSF's vision of a committed balance between people, ideas
and tools is exemplified within ENG. It is important to recognize that
fundamental sciences and engineering funded by NSF quite frequently
spawns next generation technologies. Examples of successes emerging
from ENG include development of an artificial retina and a biocapsule
for insulin delivery. ENG is also funding work on ``pico-newtons'',
microscopic chains for magnetized particles that may be precursors of
materials that will protect buildings from earthquakes.
ASME has strongly supported the nanotechnology initiative since its
inception as an NSF emphasis area in fiscal year 2000. In the past
three years, funding for this initiative has grown substantially. With
a growing record of research and development successes, the
transitioning of nano-science and engineering into commercially viable
technologies is becoming a pressing challenge for nano-science and
engineering. For this reason, it is important that multi-institutional
tools be developed in the near term in which access, maintenance and
staffing issues have been resolved.
Finally, ASME continues to endorse NSF's participation in K-12
math, science and engineering education initiatives consistent with the
agency's broader mandate to lead the nation's research and development
enterprise. Most notably, NSF has again included $200 million in its
fiscal year 2004 budget request for the Math and Sciences Partnership
(MSP) program. The goal of MSP is coupling K-12 and higher education
STEM education into a single integrated effort by encouraging
universities to adopt STEM into their core missions.
In this technological age, providing the highest quality math,
science and technology education to all children should be a national
imperative. The Task Force applauds President Bush's No Child Left
Behind policy and NSF's role. However, the Task Force cautions that a
proper balance' must be struck to preserve the integrity of NSF's
fundamental research and development mission.
QUESTIONS AND CONCERNS
Continuing with central themes raised in previous years, the Task
Force's key questions and concerns arising from the fiscal year 2004
budget request center on matters of balance. In particular, ASME is
concerned with:
--the gross funding imbalance in the federal R&D portfolio,
--inadequate funding levels for existing grants,
--insufficient support for core engineering programs at NSF.
The overall imbalance in the federal R&D portfolio remains a major
concern to ASME. The requested funding for NIH this year is almost half
of the total non-defense R&D request. Focusing purely on health issues
while the nation faces threats from dwindling energy supplies, aging
infrastructure and geopolitical instability, to name but a few, is
entirely inconsistent with a balanced leadership plan. Even the health
science community is concerned that insufficient technology development
in related fields may be the greatest impediment to major medical
breakthroughs. Failure to adequately support broad, cross-cutting
fundamental research inherent to most NSF programs continues to
undermine the long-term health and vitality of the nation. As noted
earlier, this is particularly nettlesome when considering that the
fiscal year 2004 NSF Budget Request actually represents only a 3.2
percent increase over fiscal year 2003 appropriations.
NSF has had considerable success to date in stretching its funds to
bridge (i.e. mask) imbalances in the federal R&D portfolio. Indeed, NSF
richly deserves the governmental acclaim it has received for its
efficiency and impact in managing basic research and development.
However, this efficiency is coming at the expense of quality research.
The projected median research award size for fiscal year 2004 is
estimated to be $90,890 per year for three years. This is in general
sufficient to support one graduate student and a senior investigator
with only a limited amount remaining to actually conduct the research.
An extended period of constant grant sizes has eroded buying power and
the ability to adequately support professional development. Further,
forming small teams (2-3 senior investigators) to pursue and define
major initiative areas, often in interdisciplinary areas, is equally
difficult. Thus to truly advance the frontiers of science and
technology, significant increases must be made not only to the number
of grants, but to the size of each grant as well. By way of reference,
NIH's projections for the average size of new competitive research
project grants (RPGs) in fiscal year 2004 are $358,300 per year with an
average project duration of 3.8 years.
Maintaining a fundamental knowledge base is essential for
intelligent and effective response to rapidly evolving technological
challenges facing the nation. Current world events, including the
heightened awareness of homeland security needs, highlight the
impossibility of predicting what scientific and engineering disciplines
will be needed in response to future technology challenges. Meeting
those needs will often come from applying state-of-the-art fundamental
science and engineering knowledge in new and innovative ways.
However, the record on funding core programs over the past few
years has not been strong. Over the past five years, increases in
funding for initiative areas have outstripped growth in core programs.
That this trend will continue into fiscal year 2004 can be seen in
Table I, where requested NSF funding across the entire agency and
within ENG are compared with and without funding for the initiative
areas. One can clearly see that funding for initiative areas (including
the SBIR program) within ENG constitute a full 44 percent of the budget
request for ENG. The increase for initiatives exceeds 17 percent. By
comparison, Table I shows that funding for the rest of ENG, which will
be considered as core programs, will only increase by 5 percent.
A specific example of the unbalanced emphasis on initiative driven
activity is the Chemical and Transport Systems (CTS) Subactivity in
ENG. The total request for CTS in fiscal year 2004 is $66.2 million
representing a $7.26 million or 12.3 percent increase relative to the
fiscal year 2003 Budget Request. If one subtracts increases for the
initiative programs, totaling $4.88 million, and $4.0 million
transferred into ENG ``for a new Science and Technology Center (STC) on
New Materials for Water Purification'', there will be a net decrease of
$1.62 million in funds available for core CTS research programs. This
is particularly noteworthy because funding for initiatives and the STC
will total $36.1 million in fiscal year 2004, over 54 percent of the
CTS request.
This discussion, of course, is exacerbated in light of the recent
fiscal year 2003 appropriations bill effectively reducing the total
requested increase for fiscal year 2004 to 3.2 percent. Continued focus
on initiatives at the cost of maintaining a balanced science and
technology knowledge base may have unforeseen negative impacts in the
future. The issues of balance raised in this statement need to be
seriously considered.
SUMMARY
The Task Force continues its enthusiastic support for the National
Science Foundation and its leadership in articulating the nation's
basic research and development vision. In fiscal year 2004, NSF has
requested funding to expand major, cross cutting initiatives addressing
pivotal technological issues facing the nation. This includes the
nanotechnology initiative strongly endorsed by ASME. Expansion of the
graduate fellows programs coupled with increases in stipend levels
reinforces NSF's commitment to graduate education (i.e. developing
people). The focus on developing people and ideas in general is
certainly reflected throughout the ENG directorate's budget request as
well. The challenge for this year appears to be maintaining a healthy
balance between maintaining world R&D leadership and incorporating K-12
math, science and engineering education and between supporting core
programs and expanding key initiatives.
There is great concern over the growing imbalance between life
sciences funding and the rest of the nations research and development
portfolio. Crises, such as those occurring in the gasoline and power
production industries, reflect long term failure to value and support
core research focused at advancing the nation's technological
infrastructure. In addition, recent events strongly underscore the fact
that it is impossible to know what part of the science and technology
base will be needed on short notice to respond to rapidly developing
opportunities or crises. The current budget plan does not appear to
permit NSF to meet key fiscal year 2004 Performance Goals (i.e. Goals
III-1 and III-2). Increasing the number and size of its awards with
enable NSF to better position itself to fulfill its leadership
responsibility in directing the nation's research and development
activities.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
The ASME Aerospace Division would like to thank you for this
opportunity to comment on the National Aeronautics and Space
Administration's fiscal year 2004 budget request. Our statement will
specifically address the nation's critical aeronautics research and
development programs. This portion of the statement represents the
views of the ASME Aerospace Division and is not necessarily a position
of ASME International as a whole.
For the past four years, ASME has been working with an Aviation
Research and Development Coalition, comprised of 15 leading aerospace,
aeronautics and aviation organizations, calling for a renewed national
commitment to sustain U.S. leadership in aviation and aeronautics
research and technology. Our organizations are extremely concerned that
the United States is in grave danger of losing its position as the
world leader in aeronautics and aviation. Our Coalition statement is
attached.
Since fiscal year 1998, NASA's aeronautics research budget has been
cut in half. Last year, NASA introduced their ``Aeronautics Blueprint--
Toward a Bold Era of Aviation''--presenting an exciting vision of what
could be achieved with additional investments in aeronautics research
and development. Yet, even while NASA outlined technologies that the
U.S. could invest in that would significantly lower noise, as well as
emissions and fuel consumption, and reinvigorate basic and applied
research in aeronautics and aviation, their budget was again cut--this
time by $58 million in fiscal year 2003. While, NASA's fiscal year 2004
budget reflects a 1 percent increase in aeronautics funding compared to
fiscal year 2003, additional funding for aeronautics research over the
next five years is projected to be reduced by 4 percent.
According to a recently released report, ``The National Economic
Impact of Civil Aviation,'' the total economic impact of civil aviation
exceeded more than $900 billion and 11 million jobs to the U.S. economy
in the year 2000, roughly 9 percent of the total U.S. gross domestic
product. The U.S. aerospace and the air transportation industry has a
major economic and employment impact in all 50 states and is a major
force of civil, military and space manufacturing and air operations in
nearly half of the nation's states.
Decreased federal investment in aviation and aeronautics R&D is
destined to weaken the economic competitiveness of the U.S. aviation
industry. For the first time ever, Airbus won 50 percent of new
aircraft orders during 2002. Our international competitors are well on
their way to overtaking us in global air transportation markets. If the
U.S. aviation industry is to continue to be a positive contributor to
U.S. balance of trade, then we must have the ability to develop the
next generation of aircraft that will enable it to compete
internationally.
Over the past several years, de-emphasis of long-term aeronautical
research at NASA has impaired U.S. universities' ability to maintain
vibrant aeronautical engineering programs. The nation is experiencing a
diminishing pipeline of qualified aeronautical engineering students at
both the undergraduate and graduate levels. Engineers and scientists do
not consider aerospace a growth industry.
Allow me to quote from the Aerospace Commission's report:
--``There is a major workforce crisis in the aerospace industry. Our
nation has lost more than 600,000 scientific and technical
aerospace jobs in the past 13 years.''
--``The aerospace workforce is `aging' and that 26-27 percent of
aerospace workers are eligible to retire by 2008. The average
of age of production workers is 44 in the commercial sector, 53
in defense and 51 at NASA.''
--``In addition, the proportion of workers age 30 or younger dropped
by almost two-thirds, from 18 percent in 1987 to 6.4 percent in
1999.''
--``U.S. graduates at the bachelor and master degree levels in
aerospace engineering and related disciplines have dropped by
47 percent and 39 percent, respectively, since 1990.''
This is great cause for alarm. For the past 75 years American
universities have provided creative, skilled engineers for national
defense and aeronautical commerce. Our educational base has been
declining and will continue to erode if we do not nurture and support
basic aeronautics research in the United States. Two decades ago, we
began to see manufacturing jobs move overseas. Today, we are witnessing
white-collar jobs, including engineering, moving offshore as well.
Investment in research and development is vitally needed to keep the
U.S. on the cutting edge of high value, new technologies, including the
development of advanced global air transportation systems. Without this
investment, the U.S. will lose its technological edge and will continue
to see engineering jobs move offshore.
The United States has been at the forefront of discovery and
innovation throughout the history of aeronautics and aviation.
Honorable Robert S. Walker, the Aerospace Commission Chair and
transition team senior advisor on science, space and technology, stated
upon releasing the Commission's report, ``A strong aerospace industry
is essential to enable the United States to defend itself, compete in
the marketplace, maintain a highly skilled workforce, and provide all
Americans with the ability to travel safely and securely anywhere in
the world.''
As we approach the centennial of the Wright Brothers' first flight,
it is crucial that the United States re-establish preeminence in
aviation and aeronautics research. We urge you to support aerospace as
a national priority by providing robust and stable funding for NASA's
aeronautics and development programs.
______
PREPARED STATEMENT OF THE AMERICAN HEART ASSOCIATION
Heart attack, stroke and other cardiovascular diseases remain
America's leading cause of death, hospitalizations and a main cause of
disability. The 950,000 deaths each year from cardiovascular diseases
represent nearly 40 percent of all American deaths.
The American Heart Association, with its 22 million volunteers and
supporters, works to reduce disability and death from heart attack,
stroke and other cardiovascular diseases. We commend this Committee's
support of the Department of Veterans Affairs' Medical and Prosthetic
Research program.
STILL NUMBER ONE
Heart attack, stroke and other cardiovascular diseases have been
America's No. 1 killer since 1919. Nearly 62 million Americans of all
ages suffer from cardiovascular diseases. Hundreds of millions of
Americans have major risk factors for cardiovascular diseases--an
estimated 50 million have high blood pressure, 42 million adults have
high blood cholesterol (240 mg/dL), nearly 49 million adults smoke,
more than 129 million adults are obese or overweight and nearly 11
million have confirmed diabetes. As the baby boomers age, the number of
Americans afflicted by these often lethal and disabling diseases will
increase substantially. Cardiovascular diseases cost Americans more
than any other disease--an estimated $352 billion in medical expenses
and lost productivity in 2003.
Heart disease and stroke occur at all ages, but they are most
common in Americans over age 65--a group that is nearly 12.4 percent of
the U.S. population and will be 16.5 percent by year 2020. By 2020, the
percentage of veterans over age 65 will be about three times that of
the general population. The VA's planning models recognize that its
aging patient population demands more care. As the veteran population
ages, the number with heart disease and stroke will increase
substantially.
HOW YOU CAN MAKE A DIFFERENCE
We advocate for an fiscal year 2004 appropriation of $460 million
for direct costs of the VA Medical and Prosthetic Research program and
$45 million for research facility improvements. Our recommendation is
consistent with that of the Friends of VA Medical Care and Health
Research and the Independent Budget, a detailed analysis of VA funding
needs developed by four of the major veterans service organizations and
endorsed by more than 60 other groups. An appropriation of $460 million
would accommodate biomedical research inflation and federal pay
increases as well as a major new initiative in deployment health
research and expansion in areas such as terrorism, emerging pathogens,
special populations, quality improvement, chronic diseases, including
heart disease and stroke, and diseases of the brain, including study of
rehabilitation of stroke victims. The President's budget of $408
million for direct costs of this vital program represents a 2.7 percent
increase. This is inadequate to sustain the current level of effort or
to accommodate new initiatives.
The Association challenges our government to significantly increase
funding for heart and stroke research supported by the VA Medical and
Prosthetic Research program. We commend the VA for establishing a
Rehabilitation Research Outcomes Center (REAP) targeting stroke
patients. We urge the VA to not only expand this center, but also to
augment the REAP on heart disease. These initiatives would help advance
the battle against heart disease, stroke and other cardiovascular
diseases. Our government's response to this challenge will help define
the health and well being of citizens for decades to come. In addition,
we recommend $45 million for facilities construction and renovation.
The VA has had to defer almost $350 million of major and minor
construction repairs on its aging research infrastructure. Delaying
these renovations impairs the quality of VA medical research and
threatens the VA's ability to recruit and retain first-class
investigators.
INSUFFICIENT VA RESOURCES DEVOTED TO HEART AND STROKE RESEARCH
The VA Medical and Prosthetic Research program plays an important
role in heart and stroke research and deserves the strong support of
Congress. In fiscal year 2002, VA support for heart research was $23.8
million (still below the high of fiscal year 2000), accounting for only
4 percent of the fiscal year 2002 VA's Medical and Prosthetic Research
budget. In fiscal year 2002, VA-supported stroke research represented
$7.7 million or 2.1 percent of the research budget. We are concerned
that insufficient money is being devoted to America's No. 1 killer--
heart disease--and our No. 3 killer--stroke. Both are major causes of
permanent disability.
VA HEART AND STROKE RESEARCH BENEFITS ALL AMERICANS
The VA Medical and Prosthetic Research program is dedicated to
``discovering knowledge and creating innovations that advance the
health and care of veterans and the nation.'' While the primary purpose
of the VA health care system is the provision of quality health care to
eligible veterans, VA-supported research contributes to the quality of
care by bringing talented and dedicated physicians into the VA system.
In a recent survey, 62 percent of researchers indicated that they would
not work in the VA without research opportunities. VA-supported
research discoveries benefit veterans, science and the world's health.
VA cardiovascular research is an integral part of the effort. VA
cardiovascular researchers include nationally recognized, distinguished
scientists and several Nobel Laureates. The VA supported Ferid Murad,
M.D., 1998 Nobel Prize winner for research demonstrating the role of
nitric oxide in regulating blood pressure. American Heart Association
volunteer Gerald DiBona, M.D., was awarded the prestigious VA Middleton
Award in 1995 for internationally recognized research on kidney and
cardiovascular diseases.
The Medical Research Service component of the VA Medical and
Prosthetic Research program supports basic and clinical research,
mainly investigator-initiated peer reviewed studies. It provides funds
for support of VA-based faculty members (M.D.s or Ph.D.s) at various
stages in their careers and research equipment. VA investigators
provide core faculty support at major medical schools affiliated with
VA institutions. This small but internationally recognized, highly
competitive research program in fiscal year 2002 supported 3,167
investigators at 115 VA-supported facilities.
VA heart and stroke research is largely clinical. Hence, the VA is
a major contributor to clinical research, playing a unique role because
of its ability to immediately translate research findings into
practice. VA research has produced landmark results and revolutionized
treatment in heart disease and stroke. You and your family have
benefited from VA heart and stroke research. Cutting-edge examples
follow.
--Heart Attack Diagnosis.--VA Researchers developed a simple,
inexpensive blood test that can rule out heart attack within 90
minutes with 100 percent accuracy, reducing critical care
admissions 40 percent and general hospital admissions 20
percent.
--Aspirin and Angina.--An estimated 6.6 million Americans suffer from
angina (chest pain) due to insufficient blood supply to the
heart. In another landmark study, VA research found that
aspirin cuts deaths and heart attacks by 50 percent in patients
suffering from unstable angina.
--Angioplasty Benefits.--In 2000, more than 1 million angioplasty
procedures were performed in our nation to restore blood flow
to the heart by widening narrowed arteries. VA research was the
first to evaluate angioplasty. Results showed that after
undergoing angioplasty, patients suffered less pain and can
exercise longer than those taking only medication. Another
study found clot-busting drugs had similar results to
angioplasty for heart attack survivors at savings of $3,000 per
patient. Annually, over 150,000 people are candidates for clot-
busting drugs, according to the VA.
Heart Failure
--Heart Failure Drugs.--A VA study, which has revolutionized heart
failure treatment, showed that heart medications can enhance
the heart's pumping ability and keep patients suffering from
heart failure alive and living more productive lives.
--Heart Failure Diagnosis.--VA researchers developed a first-ever
blood test that emergency department doctors use to diagnose
heart failure in 15 minutes. More than 1,200 hospitals
nationwide use this test, which offers an option to exams, x-
rays, stress tests and echocardiography to diagnose heart
failure. Conventional tests often require a hospital stay.
--High Blood Pressure.--An estimated 50 million Americans have high
blood pressure, the most critical stroke risk factor and a
major cause of heart attack and heart failure. VA research has
confirmed private sector statistics demonstrating that
physicians increase the dose of antihypertensive medicines in
only 25 percent of patients. These patients, many who had their
blood pressure monitored, were poorly controlled. An
inexpensive computerized reminder system helps doctors manage
patients and cuts cost by reducing use of calcium channel
blockers. As a result of the VA-developed comprehensive model
of psychosocial and cultural factors on poor blood pressure
control, health care providers now incorporate the patients'
social and medical environments into the treatment regimen.
More aggressive blood pressure management will reduce heart
attacks and strokes. Challenging long-held beliefs, VA
researchers showed that malfunctioning kidneys are an important
cause of high blood pressure, rather than the result of high
blood pressure.
--Cholesterol.--An estimated 11 million veterans are at increased
risk of heart disease due to high cholesterol levels, according
to the VA. A groundbreaking VA-supported clinical trial found
that daily use of the drug gemfibrozil raises HDL cholesterol,
the ``good'' cholesterol, by 6 percent, reduces coronary heart
disease risk by 22 percent and stroke risk by 31 percent.
Results could mean cost savings because gemfibrozil is cheaper
than statin drugs. This is the first study to show significant
reduction in risk of major cardiovascular diseases by raising
HDL, the ``good'' cholesterol, lowering triglycerides and not
changing LDL, the ``bad'' cholesterol. VA research showed the
effectiveness of cholesterol screening to determine levels of
HDL and LDL--even in patients older than age 65. Another study
found that soy protein added to a low-fat diet lowers
cholesterol in those with moderately high cholesterol levels.
--Irregular Heartbeat Treatment.--An estimated 2 million Americans
suffer from atrial fibrillation, the most common irregular
heartbeat, which causes more than 75,000 strokes a year. VA
researchers corrected atrial fibrillation using the ``Maze
Procedure,'' with a hand-held radiofrequency probe to ``draw''
ablation lines on the inside of the atria while the heart is
exposed. Previously, the ``Maze Procedure'' was performed by
cutting the atrium into multiple sections and then stitching it
back together--a lengthy and high risk procedure. Another study
of atrial fibrillation showed that digoxin was not effective in
controlling heart rate when used alone. However, when digoxin
was combined with a beta-blocker, patients achieved almost
perfect heart rate control. These results will enhance
treatment for atrial fibrillation and reduce stroke risk.
Stroke
--Stroke Survivor Improvements.--Stroke is a major cause of permanent
disability and America's No. 3 killer. VA studies have produced
therapies to enhance quality of life for survivors. Researchers
have created a software program to assess and treat the stroke-
related speech disorder aphasia. They have also shown that
strenuous exercise can benefit stroke survivors who are
paralyzed on one side of their body, and have developed a
rehabilitation procedure to restore arm movement. Researchers
have also identified seven pathways associated with motor
recovery from stroke, allowing more precise predictions about
functional recovery. In another study, VA researchers implanted
electrodes in leg muscles of stroke patients and used
sophisticated software to electronically stimulate muscles. VA
researchers were the first to demonstrate that robot-assisted
therapy is more effective than conventional treatment in
restoring upper limb movement.
--Psychoeducational Program for Stroke Family Caregivers.--Most
stroke survivors are helped in the recovery process by a family
caregiver, usually the spouse. A pilot study testing a program
to reduce physical and psychological demands on family
caregivers found this intervention reduced depression and
caregiver burden and better prepared them for their role.
Initial results found that a telephone intervention may be as
helpful as the in-home program. Execution of this program could
have vital results for family caregivers of many of our 4.7
million stroke survivors.
HEART AND STROKE RESEARCH CHALLENGES AND OPPORTUNITIES FOR VA
Research advances have been made possible by congressional support
of the VA Medical and Prosthetic Research program. Thanks to research,
more Americans survive their heart attack or stroke. But, while more
Americans are surviving, heart attack is still the single largest
killer in the United States and stroke remains the No. 3 killer. The
disability caused by heart attacks and strokes requires costly medical
care and loss of productivity and quality of life. Clearly more work is
needed if we are to win the fight against heart disease and stroke.
These challenges create abundant research opportunities to advance the
battle against heart disease and stroke. Examples of on going VA
research are highlighted below.
--Heart Failure.--Nearly 5 million Americans suffer from heart
failure, a major cause of hospitalization of Americans age 65
and older. A VA study is comparing the effects of three anti-
clotting therapies (aspirin, warfarin or clopidogrel) in heart
failure patients. Another study is creating a large DNA bank of
sufferers to examine the genetic basis of heart failure. A
third study, the first large scale, international, randomized
clinical trial, is evaluating the effects of digitalis, a 200-
year old treatment, in preventing heart failure deaths.
--Inflamed Arteries.--Many heart attacks and strokes are the end
result of atherosclerosis or hardening of the arteries, the
disease process that causes obstructed blood vessels. VA-
supported research has shown that inflammation may cause
atherosclerosis and may also cause previously stable
atherosclerotic plaques in arteries to become unstable, which
can lead to a heart attack or stroke. Scientists have
identified large numbers of receptors in heart blood vessels
that attract the blood cells that cause inflammation. If
researchers can create a way to block that receptor,
progression of atherosclerosis might be prevented.
--Heart Attack.--An estimated 1.1 million Americans suffer a heart
attack each year. VA research is assessing cost-effective ways
to diagnose patients at risk of heart attack without costly
invasive procedures, including a computer analysis of the
heart's electrical signals during exercise and a new scoring
system in treadmill tests. They are examining long-term outcome
and risk factors for heart attack sufferers, for those who have
heart attack during surgery and for those who have heart bypass
surgery. Researchers have identified a molecular marker that
may help predict heart attack. They are studying if attacks can
be prevented by increasing levels of a protein that stimulates
blood vessel growth and helps repair damaged tissue. Findings
could save money, improve health and reduce surgery.
--Angioplasty.--In the first study of its kind, the VA COURAGE trial
is comparing the effectiveness of angioplasty with medical
therapy versus aggressive medical therapy alone in patients
with heart disease. The results of this study could
revolutionize treatment of heart disease. In 2000, more than 1
million angioplasty procedures were performed to restore blood
flow to the heart by widening narrowed arteries.
--Heart Bypass Surgery.--In 1999, VA doctors performed nearly 6,000
coronary artery bypass surgery procedures. VA researchers are
comparing two coronary artery bypass surgical procedures--
standard coronary artery bypass surgery using a cardiopulmonary
bypass machine, versus surgery while the heart is still
beating, without requiring the bypass machine, to assess, among
other outcomes, how cognitive function is affected.
--Stroke.--Stroke strikes about 700,000 Americans each year, leaving
about 1 in 4 survivors permanently disabled. Researchers found
restricting use of limbs unaffected by stroke can help patients
recover use of affected limbs more quickly and fully. Progress
in deciphering language of the brain's motor cortex could lead
to new technology that may reconnect damaged areas or
communication pathways of the brain and may restore lost
function after a stroke. Researchers are studying genetic
susceptibility to carotid atherosclerosis, a major cause of
stroke. A REAP will use an innovative approach to understanding
stroke and its often-debilitating effects, drawing on medical
research, exercise physiology and rehabilitation medicine. This
REAP will also serve as a unique training vehicle for early-
career stroke researchers.
The Medical Research programs highlighted below are of interest to
the American Heart Association.
--Investigator-Initiated Studies.--During fiscal year 2002 this
program constituted an estimated 73 percent of the Medical and
Prosthetic Research appropriated budget. These investigators
comprise the core of all VA research and provide the
preceptorship for career development awardees.
--Cooperative Studies.--In fiscal year 2000 this program supported an
estimated 38 clinical trials. The VA offers a unique
opportunity for cooperative studies due to close linkage among
hospitals. These studies provide a mechanism by which research
on the effectiveness of diagnostic or therapeutic techniques
can achieve statistically significant results by pooling data
on patients from a number of VA hospitals. The Cooperative
Studies Evaluation Committee evaluates proposals developed by
teams of clinicians and biostatisticians. The VA has supported
landmark clinical trials in the cardiovascular field (e.g. high
blood pressure treatment and coronary artery bypass surgery).
--Career Development Awards.--Applications for these awards are
reviewed both locally and by the VA Central Office. In response
to the Research Realignment Advisory Committee's suggestion to
rejuvenate this program, a renewed emphasis began in fiscal
year 1997 for the VA's Medical Research Service, Health
Services Research and Development Service and, for the first
time, Rehabilitation Research and Development Service. This
resulted in 188 Career Development Awards in fiscal year 2002.
--Rehabilitation Research and Development Service.--Dedicated to
improving the quality of life of impaired and disabled veterans
through a full range of research, this intramural program has
been very important to veterans suffering from heart disease,
stroke and other cardiovascular diseases.
ACTION NEEDED
Investment in medical research will lead to future returns. These
include continued decreases in death rates from heart attack, stroke
and other cardiovascular diseases, reduced federal outlays for hospital
and long-term care, a well-trained cadre of medical researchers and a
healthier society. Consistent with the Friends of VA Medical Care and
Health Research and the Independent Budget, we advocate an fiscal year
2004 appropriation of $460 million for direct costs of the Medical and
Prosthetic Research program. This will allow maintenance of fiscal year
2003 initiatives and implementation of new initiatives, including
continuation of research momentum in heart disease and stroke and
maintenance of VA's vital role in this field. We urge the VA to expand
a Rehabilitation Research Outcomes Center, targeting stroke patients,
and augment the REAP into heart disease and stroke to advance the fight
against heart disease, stroke and other cardiovascular diseases--
America's No. 1 killer and a cause of permanent disability. Also, we
recommend $45 million for facilities construction and renovation to
enhance VA research and help recruitment and retention of quality
investigators.
______
PREPARED STATEMENT OF THE AMERICAN PUBLIC POWER ASSOCIATION
The American Public Power Association (APPA) is the national
service organization representing the interests of over 2,000 municipal
and state-owned utilities in 49 of the 50 States (all but Hawaii).
Collectively, public power utilities deliver electricity to one of
every seven electric consumers (about 40 million people), serving some
of the nation's largest cities. However, the vast majority of APPA's
members serve communities with populations of 10,000 people or less.
We appreciate the opportunity to submit this statement outlining
our fiscal year 2004 funding priorities within the VA-HUD
Subcommittee's jurisdiction.
ENVIRONMENTAL PROTECTION AGENCY: ENERGY STAR PROGRAMS
According to data compiled the Environmental Protection Agency
(EPA), its Energy Star program helped save American businesses and
consumers more than $5 billion and substantially reduced greenhouse gas
emissions (the equivalent of the emissions released by 10 million cars)
in the year 2000.
Energy Star is a voluntary partnership program pairing EPA with
businesses and consumers nationwide to enhance investment in
underutilized technologies and practices that increase energy
efficiency while at the same time reducing emissions of criteria
pollutants and greenhouse gases. In particular, APPA member systems
across the country have been active participants in a subset of the
Energy Star program called ``Green Lights.'' The Green Lights program
encourages the use of energy efficient lighting to reduce energy costs,
increase productivity, promote customer retention and protect the
environment.
APPA appreciates the support of both the Administration and
Congress for the programs encompassed by Energy Star and supports their
continued robust funding.
ENVIRONMENTAL PROTECTION AGENCY: LANDFILL METHANE OUTREACH PROGRAM
APPA supports EPA's Landfill Methane Outreach Program (LMOP) and
encourages the Subcommittee to continue its support as well. The
Landfill Methane Outreach Program helps to partner utilities, energy
organizations, states, tribes, the landfill gas industry and trade
associations to promote the recovery and use of landfill gas as an
energy source.
Landfill gas is created when organic waste in a landfill
decomposes. This gas consists of about 50 percent methane and about 50
percent carbon dioxide. Landfill gas can be captured, converted, and
used as an energy source rather than being released into the atmosphere
as a potent greenhouse gas. Converting landfill gas to energy offsets
the need for non-renewable resources such as coal and oil, and thereby
helps to diversify utilities' fuel portfolios and to reduce emissions
of air pollutants from conventional fuel sources.
As units of local and state governments, APPA's member utilities
are uniquely poised to embark on landfill-gas to energy projects. EPA's
LMOP facilitates this process by providing technical support and access
to invaluable partnerships to our members and the communities they
serve.
COUNCIL ON ENVIRONMENTAL QUALITY
APPA supports the Administration's request of $3.23 million for
fiscal year 2004 for the White House's Council on Environmental Quality
(CEQ). Public power utilities have experienced a general lack of
consistency in federal government regulation, particularly involving
environmental issues. While additional layers of government should be
avoided, a central overseer can perform a valuable function in
preventing duplicative, unnecessary and inconsistent regulation. CEQ is
responsible for ensuring that federal agencies perform their tasks in
an efficient and coordinated manner.
Again, we appreciate your consideration of our priorities for the
VA-HUD Subcommittee's fiscal year 2004 appropriations.
______
PREPARED STATEMENT OF THE COALITION FOR EFFECTIVE NATIONAL SERVICE
Mr. Chairman and Members of the Committee, the members of the
Coalition for Effective National Service, a membership organization
composed of national nonprofit grantees of the Corporation for National
and Community Service, thank you for the opportunity to submit
testimony. We thank you for your leadership and commitment to national
service. It is because of your vision and leadership that more than
300,000 AmeriCorps members in the last decade have dedicated themselves
to serving the nation and their communities.
We are now almost two years removed from the tragedy of September
11, 2001. Yet in many ways, that awful time looms over us. According to
the noted social scientist Robert Putnam ``in the aftermath of
September's tragedy, a window of opportunity has opened for a civic
renewal that occurs only once or twice a century.'' In spite of this
window and in spite of President Bush's leadership, we have made
limited progress in realizing the President's goal of a nation of
``. . . citizens, not spectators; citizens, not subjects;
responsible citizens, building communities of service and a nation of
character.''
This is a wonderful, measurable goal that if met, will truly
transform America for the better. We believe that by growing
AmeriCorps, fully funding the challenge grant program, and eliminating
the ``cap'' on national nonprofits we can create a comprehensive
national service movement that generates community volunteers,
reinvigorates citizenship and democracy and sparks a new culture of
service, citizenship, and responsibility in the United States.
This has been a difficult year for AmeriCorps. The enrollment
``pause'' and the confusion surrounding the National Service Trust have
seriously disrupted programs at the local level. In his fiscal year
2003 budget, President Bush called for an increase in funding to
support 25,000 additional AmeriCorps members, but program funds were
reduced and are now at their lowest level since 1994.
In his fiscal year 2004 budget, the President again calls on
Congress to increase the size of AmeriCorps. We urge you to honor the
President's request.
IN ORDER TO GROW AMERICORPS, WE WILL HAVE TO DRAMATICALLY EXPAND THE
OPPORTUNITIES FOR AMERICANS TO SERVE
AmeriCorps is a proven program that works. Expanding by 25,000
members a year will be a terrific first step towards providing many
more opportunities for Americans to serve, and we should continue to
grow the program from there. Every American should be challenged and
given the opportunity to serve. Many proven programs, such as Habitat
for Humanity, YouthBuild, Jumpstart, Teach for America, the National
Association of Service and Conservation Corps, City Year, are ready to
go to scale and need only the resources to do so.
Since 1994, more than 300,000 AmeriCorps members have produced
significant results-meeting critical needs in education, public safety,
health and human services, and the environment in every state across
the nation. The following examples are just a few of the contributions
made by AmeriCorps members over the past nine years:
--Students tutored by AmeriCorps members improved their reading
performance more than the gain expected by the typical child at
their grade level;
--Established, expanded, or operated 46,000 safety patrols;
--Served more than 1 million at-risk youth in after-school programs;
--Provided food, clothing, and other necessities to more than 5
million homeless people;
--Provided job or career counseling to more than 550,000 people;
--Immunized more than 1 million people;
--Helped more than 650,000 seniors to live independently; and,
--Recruited, trained, or supervised more than 2.5 million community
volunteers to help non-profits meet important community needs.
More specifically, examples of the impact of national nonprofits
include:
--Teach For America participants have taught more than 1 million
students in low-income communities throughout America since the
inception of AmeriCorps;
--City Year has engaged more than 700,000 citizens of all ages in
service around the country;
--Jumpstart has prepared more than 10,000 pre-schoolers from low-
income families to be ready to read when they start school;
--The National Association of Community Health Centers has supported
health care services to more than 350,000 residents of
medically underserved areas;
--Habitat for Humanity built more than 11,000 homes;
--Public Allies has placed more than 1,000 future leaders in almost
600 partner organizations, served 300,000 people, and engaged
30,000 community volunteers; and,
--In 2001-2002, AmeriCorps members serving with the Youth Volunteer
Corps of America recruited almost 5,200 Youth Volunteers for
service-learning projects, an additional 5,000 to implement
community service projects, and worked with 518 community
partners.
--The National School and Community Corps has engaged more than
125,000 urban students in grades K-12 in programs during
school, after school, and in the summer resulting in increased
student achievement and attendance, reduced youth violence, and
improved school climates.
--In 2001-2002, Northwest Service Academy AmeriCorps members and the
volunteers they generated cleared 380 acres of non-native
invasive plants, planted almost 175,000 native trees, plants,
and shrubs, restored more than 1,700 miles of trail and
provided environmental education to 36,000 students and
community members.
--Over the past five years CLEARCorps members have protected more
than 2,500 children by controlling lead hazards in the homers
and have educated more than 75,000 parents and community
members on the causes and prevention of childhood lead
poisoning.
--Since 1995, approximately 600 bilingual AmeriCorps members serving
with the Association of Farmworker Opportunity Programs have
trained almost 300,000 members of farmworker families in
pesticide safety. Serving in 23 states, and often working with
local health clinics and churches, they have provided free
environmental health training to growers, some of whom own
family farms.
--In 2002 members of the National Association of Service and
Conservation Corps enrolled more than 24,000 people, provided
18.3 million hours of service to their communities, and
mobilized more than 11,000 community volunteers who contributed
an additional 1.8 million hours of service.
All of this great work has been made possible by the federal
government, not in running the programs, but in providing the resources
and the umbrella organization to get this valuable work done.
There are now more than 800 AmeriCorps programs nationwide,
including 42 fully stipended ones operated by national nonprofits that
are laying the foundation for a much more comprehensive system for
national service. Other national nonprofits operate large Education
Award Programs. With expanded resources and an increase in the quantity
and quality of service opportunities for Americans, we believe that
service can become a common experience for every American and that we
can realize President Bush's powerful vision.
Both the Commission on National and Community Service, established
by President George H.W. Bush, and the Corporation for National and
Community Service, established by President Clinton, took an innovative
approach to developing national service in America. Rather than
creating one single federal national service program, they recognized
that national service is about citizenship; it should come from the
bottom up, and the federal government should play the role of catalyst,
resource provider, standard setter, promoter, and umbrella. Our
programs respond to local needs.
We need to continue to nurture an environment in which investment,
growth, and best practices are encouraged. The end result will be high
quality, cost-effective programs that meet real needs. This environment
can be stimulated by leveraging investment from all sectors and
stakeholders and by recognizing the unique contribution of national
nonprofit AmeriCorps programs to the entire movement.
FEDERAL INVESTMENT IS A POWERFUL CATALYST FOR DEVELOPING A
COMPREHENSIVE SYSTEM OF NATIONAL SERVICE
Federal investment in national service, beginning with the
administration of President George H.W. Bush in 1992, has allowed our
organizations to grow to their current scale, serving communities all
over the country. Federal investment hasn't displaced private
investment; rather it has stimulated it, and national nonprofit
programs have matched every dollar invested by the federal government
through the Corporation for National and Community Service with private
sector support, foundation funds, and fee-for-service work.
National service programs across the country leverage significant
private sector funds, and have the capacity to do much more. In a 1999
survey, each AmeriCorps program was found to be involved with an
average of 2-3 businesses. Programs like Public Allies match their
federal monies 2:1, leveraging resources from partner nonprofit
organizations that benefit from their services, and raising other
contributions from individuals, foundations, and corporations.
National service programs also leverage considerable state and
local public sector funds. AmeriCorps has benefited school systems, in
particular. School systems inn Atlanta, Philadelphia, Chicago, Oakland,
and dozens of other cities have invested in AmeriCorps because its
members are skilled, enthusiastic, dedicated, and provide important
services as tutors, mentors and after school and summer counselors.
The Coalition for Effective National Service enthusiastically
supports President Bush's proposal to fund the challenge grant
provision in the National and Community Service Act. A strategic use of
federal matching fund challenge grants will leverage federal dollars
and unleash private philanthropy to help established programs with
proven track records to provide opportunities for young people to serve
in many more American communities. We urge you to fully fund this
initiative in fiscal year 2004.
NATIONAL NON-PROFITS ARE A STRONG AND EFFICIENT DELIVERY VEHICLE FOR
NATIONAL SERVICE
National nonprofits that operate AmeriCorps programs have a unique
role to play in the national service universe. Known as National
Directs, these programs provide quality control and expertise, engage
national companies as sponsors, and achieve economies of scale through
centralized ``back office'' operations. However, in the spirit of
experimentation and devolution, Congress placed a ``cap'' upon National
Direct funding in 1997, shrinking it from 33 percent to about 17
percent of total AmeriCorps program funds in fiscal year 2002. Because
we are convinced that National Directs are crucial to promoting
innovation, quality, replication, and sustainability in the national
service field we urge you to eliminate this limitation.
National Direct AmeriCorps programs operate in every state in the
country. They share the following characteristics: they participate in
a highly demanding national competitive process in order to receive
funds from the Corporation for National and Community Service, they
oversee operating sites in multiple states, and they are frequently
housed within major national and international nonprofit organizations,
such the American Red Cross and Habitat for Humanity. Others stand
alone.
National Directs have significant advantages that enable them to
play a key role in building a comprehensive system and infrastructure
for national service in America. They bring significant resources to
the national service field including: the ability to build strong
infrastructures, deeply committed Board members, developed business
practices, skilled professionals, programs tested and implemented on a
national scale, and the potential to partner with national companies
and foundations on important projects and initiatives. National Direct
programs include:
--Teach for America, an independent nonprofit operating in 20 regions
nationwide, which places outstanding recent college graduates
in under-served urban and rural public schools to teach for two
years;
--Habitat for Humanity AmeriCorps, housed within Habitat for Humanity
International and operating in eighteen states, which builds
and renovates houses with low-income families;
--Youthbuild USA AmeriCorps, of Youthbuild USA, operating in 23
states, which recruits disadvantaged youth to construct low-
income area housing and ``rebuild their neighborhoods as they
rebuild their lives'';
--Jumpstart for Young Children, Inc. which pairs federal work-study
college students with preschool children struggling in early
learning programs in four states;
--Community HealthCorps, operated by the National Association of
Community Health Centers in fourteen states, the District of
Columbia, and Puerto Rico which provides culturally appropriate
preventive and primary health care to medically underserved
populations and communities; and
--National Collaboration for Homeless Veterans, operated by the
United States Veterans Initiative, which provides services to
homeless veterans to connect them with housing, employment, and
treatment services and to help them successfully reintegrate
into society.
Quality control.--Like successful franchises, National Direct
AmeriCorps programs create replicable service models to adapt to any
area. National Direct programs do not start from scratch; they
establish new programs on the basis of years of experience building
local community relationships and uniting local resources, and they
work with local leaders to establish new sites. National Direct
operating sites work with their respective State Commissions, lending
resources, attending trainings and program director meetings, and
ensuring that program funders are recognized in the state's portfolio.
In addition, about twenty parent organizations for National Direct
operating sites also receive funding through some State Commissions.
Often, working with local champions such as CEOs and mayors, national
nonprofit programs have begun operations in a new locality with
national direct funding and then have been brought into the State
portfolio by the State Commission through the competitive stream.
Expertise.--National Direct programs support community-based
organizations by delivering federal resources while taking on the
bureaucratic reporting and administration that go with it. Public
Allies, for example, has placed AmeriCorps members in 550 community-
based organizations in seventeen regions across the country to date; 93
percent of those organizations report strengthened capacity such that
they will sustain the projects and relationships developed by their
members.
National reach.--National Directs have the potential to leverage
investment on a large scale. For example, Cisco Systems, Compaq
Computer Corporation, MFS Investment Management, and the Timberland
Company have each committed more than $1 million to the City Year
AmeriCorps program because of its national reach. Sponsorship for
national nonprofits is of significant interest to multi-state
corporations because it meets their employees' and customers' interests
in serving in more than one location. Furthermore, sponsorship in one
city by nationally recognized corporations and foundations frequently
influences potential sponsors in another city. These are dollars that
would not otherwise be leveraged by local service programs. National
Directs have a unique capacity to enlarge the share of philanthropic
dollars spent on service.
Cost-effectiveness.--Because National Directs centralize standard
operations, significant economies of scale and sustainability can be
achieved. Centralized financial administration, such as single payroll
and budget services, single audits, single legal representation, a
shared line of credit, or a shared national endowment can sharply
reduce costs per site. Standardized communications protocol leads to
effective brand management, targeted research, and central evaluation,
allowing reports on aggregate data from across the country. Also,
national programs can quickly leverage and build upon local innovation.
Best practices can be quickly and efficiently communicated across
operating sites, shared corps recruitment and human resources systems
leverage multiple applicants, and alumni have an instant cross-country
network.
Demonstrable impact.--National Directs are able to aggregate their
results on a large scale and unify a range of service activities from
multiple programs through a focused mission. Lines of accountability
for service outcome are that much easier to control, and results are
easier to collect. Below are some examples:
--Teach for America reports that 96 percent of principals rated their
members as excellent or good in terms of achievement,
orientation, and drive to succeed; 97 percent would absolutely
hire their members again;
--In 2001, members serving with the National Collaboration for
Homeless Veterans provided more than 10,000 homeless
individuals, of which nearly 6,500 were homeless veterans, with
services including: intake, case management, group support,
legal services, transportation, and housing;
--Over a three-year period, Community Health Center members provided
a ``medical home'' for 27,644 residents of medically
underserved areas, provided 47,266 patient encounters to
improve health care utilization and cost effectiveness
(including understanding benefits, doctor instructions and
follow up), and generated 23,631 referrals to link patients
with other health and social services.
Whether operated by national nonprofits, community- and faith-based
organizations, universities, state and city departments, or
foundations, AmeriCorps programs work. It is time to take national
service to the next level through challenges to the private sector,
increased resources, and restoration of the historical role for
National Directs.
As Americans, we now have a historic, and perhaps unique,
opportunity to call all Americans to give back to their communities. We
look back at the Greatest Generation with admiration and reverence
because they overcame the Great Depression and fought a world war for
freedom and democracy. Today, while we fight a global war on terrorism
there are still great challenges here at home. We must capitalize on
this moment in our history to challenge each and every citizen to
answer the call to serve our nation and we must build a system of
national service that enables them to do so. If we build that system,
every generation of Americans will become a Greatest Generation,
because they will rise to serve causes larger than themselves. The
moment is here, but it is brief. It is up to us, working together, to
secure national service for the next generation of young people and all
Americans.
The Coalition again thanks you for your leadership, your example,
and your commitment to making service to community and country an
opportunity for all Americans.
______
PREPARED STATEMENT OF TEACH FOR AMERICA
Mr. Chairman, Senator Mikulski and Members of the Subcommittee,
thank you for the opportunity to submit testimony regarding the
President's fiscal year 2004 budget proposal to provide $3 million for
Teach For America. Mr. Chairman and Senator Mikulski, I applaud your
commitment to national service and desire to help AmeriCorps realize
its full potential. Thanks to your leadership and the work of this
Subcommittee, Teach For America corps members have reached more than
one million students in under-resourced school districts since the
inception of AmeriCorps.
I would like to take this opportunity to discuss Teach For America
and our current growth plans. I will also focus on the $3 million line
item in the President's fiscal year 2004 budget and explain why it is
critical to Teach For America's ability to grow to scale.
As you know, Teach For America is the national corps of outstanding
recent college graduates of all academic majors who commit two years to
teach in urban and rural public schools and become lifelong leaders in
the effort to ensure that all children in our nation have an equal
chance in life. We are a private, national non-profit organization, as
well as one of the original AmeriCorps programs. Our teachers receive a
salary from their local school district as well as education awards
through AmeriCorps. These education awards can be used for graduate
level education courses necessary to obtain teacher certification, to
pay back qualified student loans, or for future education. Mr. Chairman
and Senator Mikulski, since these awards are such a valuable asset for
Teach For America corps members, I want to let you know how much I
appreciate your recent efforts to provide adequate funding in the
National Service Trust for education awards.
Since 1990, when I founded Teach For America, our organization has
grown from 500 corps members teaching in 5 regions to what will soon be
3,500 corps members teaching in 20 regions during the 2003-2004 school
year. Teach For America corps members are having an impact throughout
our nation, from St. Louis to Baltimore, and from New Mexico's Navajo
Nation to the Rio Grande Valley in South Texas.
TEACH FOR AMERICA MEETS CRITICAL NEEDS
Our mission is to build a movement to eliminate the educational
inequality that exists in our country today. By the age of nine,
children in low-income areas are already three grade levels behind in
reading ability (Source: National Center of Education Statistics,
2000). As these children progress in the educational system, this
achievement gap only widens, to the point that a child who grows up in
a low-income community is seven times less likely to graduate from
college than a child growing up in a more privileged area (Source:
Education Trust, 1998).
Our corps members help close the achievement gap for the students
they reach during their two-year commitment. At the same time, they
gain insight and added commitment that shapes them into an important
leadership force, working from inside of education and from other
sectors, for long-term change.
OUR PROGRAM
We recruit the most highly sought-after college graduates of all
academic majors, career interests, and backgrounds from leading
colleges and universities. We then select corps members who demonstrate
records of achievement and leadership, as well as a commitment to
expanding opportunity for children in low-income areas.
Admission to Teach For America is highly selective, with
approximately 15 percent of our applicants gaining admission to the
corps. Of our 2002 corps members, 89 percent held leadership positions
on their campuses or in their communities. They earned average SAT
scores of 1310 and average GPAs of 3.5. In addition, 38 percent of
corps members are people of color.
This year, 15,700 young people applied for only 1,900 slots as
first year teachers. At many top schools, Teach For America is
considered one of the most prestigious post-graduate opportunities.
This year, 19 percent of Spelman's senior class applied to the corps.
And at top, larger universities, Teach For America attracted
significant portions of the student body: 5 percent of Yale and
Princeton seniors applied, as did 4 percent of seniors at Michigan and
Harvard. All are competing for the opportunity to teach in America's
neediest schools.
Corps members are selected into Teach For America if they
demonstrate strong leadership characteristics such as achievement
orientation, critical thinking, personal responsibility for success,
and the ability to influence and motivate others, as well as high
expectations for students and families in low-income communities and
the desire to work relentlessly toward this particular mission.
Those selected attend a summer training institute where corps
members teach in local public summer schools and participate in a full
afternoon and evening schedule of professional development activities.
We aim to ensure that corps members internalize the overarching
approach utilized by the most successful teachers in urban and rural
areas; and that they gain skills in instructional planning and
delivery; building a strong classroom culture; literacy development;
and teaching the specific content-area and grade-level they will be
teaching.
Following the institute, corps members assume teaching positions in
school districts in 20 urban and rural areas. They are clustered in
schools and receive extensive ongoing support and professional
development through Teach For America and through local teacher
education programs.
Following their two-year commitments, corps members can remain in
teaching (and about 60 percent teach for at least a third year). We
expect that they will ask themselves how they can have the greatest
possible impact on the challenges they and their students experienced
during their two years, and we provide a network of resources and
support that they can tap into as they continue working in educational
and social reform throughout their lives.
IMMEDIATE IMPACT ON COMMUNITIES AND STUDENT ACHIEVEMENT
Our success in recruiting and preparing exceptional classroom
teachers has led education policy makers to highlight our impact on
disadvantaged communities. Reflecting on his tenure as Superintendent
of the Houston Independent School District, Secretary of Education Rod
Paige noted, ``Every year, our best teachers came from Teach For
America.''
In a study released in August 2001, researchers at the Center for
Research on Education Outcomes (CREDO) at Stanford University compared
the impact of Teach For America corps members in Houston on their
students' achievement to that of other teachers. Researchers found that
the students of corps members, compared with students of other new
teachers, achieved greater or equal gains on standardized tests in
every subject and every grade level.
Another way we evaluate corps member impact is through a bi-annual
survey of principal satisfaction conducted by Kane, Parsons &
Associates, Inc., an independent research firm. In the spring 2001
survey by Kane, Parsons & Associates, principals credit Teach For
America teachers as having positive effects on their schools and on
student achievement. Almost four out of five principals reported that
corps members are more effective than their other beginning teachers.
An average of over ninety percent of these principals rated corps
members as good or excellent on 22 indicators of effective teaching,
including:
--96 percent--Achievement orientation and drive to succeed;
--94 percent--Knowledge of the subject matter;
--98 percent--Ability to think logically and critically;
--92 percent--Integrating into the school community; and
--93 percent--Assuming responsibility for student achievement.
LONG-TERM IMPACT
Teach For America is building a force of leaders and citizens with
a lifelong commitment to addressing the issues they witness during
their two years of service. Education Week, a leading national journal
of K-12 education, profiled Teach For America's alumni in an article
titled ``Most Likely To Succeed'' and called Teach For America a
``leader-making machine.''
According to a survey conducted in the fall of 2002, our alumni are
deeply influenced by their Teach For America experience:
--Nationally, 63 percent of our alumni are working full-time in
education, 37 percent as K-12 teachers and 26 percent as
administrators, in higher education, education-related non-
profits and other positions in the field of education; and
--Both within and outside of the education field, 79 percent of
alumni have been influenced in their career decisions by their
desire to expand opportunities in low-income neighborhoods, and
84 percent of alumni participate in civic activities motivated
by this same desire.
Even more striking is the extent to which Teach For America alumni
have already assumed leadership in the broader effort to improve
education--they are running many of the most highly acclaimed charter
schools in the country; they are turning around major urban schools as
principals; they are winning some of the highest accolades teachers can
win (as state and city teachers of the year); they are serving on
school boards and advising Governors and Members of Congress on
education policy; and they are leading model education reform, public
health and economic development initiatives.
TEACH FOR AMERICA NEEDS INCREASED FUNDING TO GROW TO SCALE
Teach For America is in the midst of a 5-year expansion plan to
more than triple the size of its teacher corps. Before this expansion
effort, Teach For America had just over 1,000 teachers in 13
communities and a budget of under $10 million. In 2004, Teach For
America will have nearly 4,000 corps members in at least 21 sites and
will need to raise a budget in excess of $30 million. At that scale,
Teach For America teachers will reach more than 300,000 public school
students every day in this country's lowest-income neighborhoods.
Seventy-five percent of our funding comes from private sources,
much of it from the local communities where our teachers teach. We have
a highly diversified base of more than 2,000 private donors from all
over the country. Top donors include Don and Doris Fisher's Pisces
Foundation; the Broad Foundation; the Walton Family Foundation; the New
Schools Venture Fund; Wachovia Corporation; and AT&T.
To raise our expanded budget, we must significantly increase our
private funding base while growing our federal funding proportionately.
With adequate federal funding, we can expand to reach more communities
and engage more recent college graduates while continuing to provide
highly qualified teachers for America's neediest classrooms. The
Corporation for National and Community Service's $3 million fiscal year
2004 budget line item would allow us to maintain our current ratio of
federal to private funding and enable us to execute our growth plan.
CONCLUSION
I hope you will agree that we have demonstrated all the
characteristics of an exemplary AmeriCorps program: we recruit talented
young people into competitive positions in critical areas of public
need; we have a significant impact in the communities we serve; we
influence the civic commitment and career path of our corps members;
and we leverage our public support for significant private resources.
As we continue our efforts to more than triple in size and reach
hundreds of thousands of children each year, we seek your support so
that Teach For America can expand its scale and impact. Mr. Chairman
and Members of the Subcommittee, we hope you will support the
President's request for $3 million for Teach for America in the fiscal
year 2004 budget.
______
PREPARED STATEMENT OF THE AMERICAN THORACIC SOCIETY
The American Thoracic Society (ATS) is pleased provide our
recommendations for programs in the Department of Veterans Affairs (VA)
medical and prosthetic research program and the Environmental
Protection Agency.
The ATS, founded in 1905, is an independently incorporated,
international education and scientific society which focuses on
respiratory and critical care medicine. The Society's members help
prevent and fight respiratory disease around the globe through
research, education, patient care and advocacy. The Society's long-
range goal is to decrease morbidity and mortality from disorders and
life-threatening acute illnesses.
Lung disease is a significant health problem in the U.S. Lung
disease is the third leading cause of death in the U.S.--responsible
for one in every seven deaths. More than 35 million Americans suffer
from a chronic lung disease. Lung diseases cost the U.S. economy an
estimated $144.9 billion annually in direct and indirect costs. Lung
disease represents a spectrum of chronic and acute conditions that
interfere with the lung's ability to extract oxygen from the
atmosphere, protect against environmental and biological assaults, and
regulate a number of vital metabolic processes. Lung diseases include:
chronic obstructive pulmonary disease (COPD--which includes emphysema
and chronic bronchitis), lung cancer, tuberculosis, pneumonia,
influenza, sleep-disordered breathing, pediatric lung diseases,
occupational lung diseases, sarcoidosis, asthma, acute lung injury and
severe acute respiratory syndrome (SARS).
DEPARTMENT OF VETERANS AFFAIRS
VA Research Medical and Prosthetic Research Program
The American Thoracic Society strongly supports the VA research
program. The VA research program is a valuable tool for attracting and
retain top-notch physicians to VA system. The VA research program also
is an important source of training support for VA physicians. The VA
research program also supports state-of-the-art research that is
leading to better treatment and cures for all Americans. Most
importantly, the VA research program is good for veterans. The research
and training programs are focused on the unique needs of veterans.
We applaud the Bush Administration and Department of Veterans
Affairs Secretary Anthony J. Principi for recognizing the invaluable
contribution VA research makes to deliver high quality care for
veterans and toward improving the health of veterans and the nation.
However, the proposed $10.6 million (2.7 percent) increase in the
direct costs of the program is inadequate to sustain the current level
of effort or to accommodate new initiatives.
The Friends of VA Medical Care and Health Research (FOVA), a
coalition of 82 medical, research, physician, academic, patient
advocacy and Veterans organizations committed to quality care for
veterans an fiscal year 2004 appropriation of at least $460 million for
the direct costs of the VA research program and $45 million for
research facility improvements. The ATS supports the FOVA
recommendations for fiscal year 2004.
The $460 million allows overall growth of $63 million (16 percent)
over fiscal year 2003. An increase of this size is justified by the
need to accommodate biomedical research inflation and federal pay
increases as well as a major new initiative in deployment health
research and expansion in areas such as terrorism, emerging pathogens,
special populations, quality improvement, chronic diseases and diseases
of the brain. We urge to the Subcommittee to support continued, steady
growth in the annual appropriation.
VA Research Facility Renovation
Separate from its recommendations for the VA research
appropriation, FOVA also recommends the Committee to address the
increasingly urgent need for improvements in VA's research facilities
by recommending a specific allocation of $45 million for these needs.
The ATS strongly supports FOVA recommendations for research facilities
improvements.
The ATS notes that the House VA-HUD subcommittee designated $25
million for minor construction research facility improvements in the
fiscal year 2003 VA-HUD bill. However, appears that conferees for the
fiscal year 2003 Omnibus Appropriations legislation reduced the total
minor construction budget to $15 million and did not make reference to
funds available for research space rehabilitation.
Despite having top-notch researchers, the VA system has a sub-par
physical infrastructure for supporting research. Substandard facilities
make VA a less attractive partner in research collaborations with
affiliated universities; reduce VA's ability to leverage the research
and development (R&D) appropriation with other federal and private
sector funding; and make it difficult to attract cutting edge
researchers, both clinician investigators and laboratory scientists, to
pursue careers in the VA. Facility R&D Committees regularly disapprove
projects for funding consideration because the facility does not have
the necessary infrastructure and has little prospect of acquiring it.
Under the current system, research must compete with other medical
facility and clinical needs for basic infrastructure and physical plant
support. Unfortunately, the minor construction appropriation is
chronically inadequate to meet facility needs for clinical improvements
much less research upgrades, and year after year the list of urgently
needed research repairs and upgrades grows longer. The VA has
identified 18 sites in urgent need of minor construction funding to
upgrade their research facilities. These sites, plus the many
facilities with smaller, but no less important needs, provide more than
sufficient justification for an appropriation of $45 million
specifically for research facility improvements.
The ATS strongly encourages the Subcommittee on Veterans Affairs to
support a fiscal year 2004 appropriation of at least $460 million for
the direct costs of the VA research program and $45 million for
research facility improvements.
ENVIRONMENTAL PROTECTION AGENCY (EPA)
Nearly all lung diseases are impacted by air pollution. How well or
poorly our lungs perform is contingent on the quality of air around us,
making the impact of air pollution inescapable. Air pollution remains a
primary contributor to a high prevalence of respiratory diseases.
For nearly 40 years, the ATS has conducted scientific, public
health and educational programs to fight air pollution and to improve
the quality of the air we breathe. We remain strong supporters of the
Clean Air Act and its amendments. We can attest to the significant
impact that the Clean Air Act has had in improving the quality of our
nation's air.
However, much remains to be done. It is estimated that millions of
Americans live in counties that do not meet current Clean Air Act
health-standards, including our Nation's Capitol. EPA reports estimate
that 170 million Americans live in areas that expose them to unsafe
levels of ozone and particulate matter.
Research has shown that air pollution is causing the premature
death of literally thousands of people each year due to complications
from exposure to air pollution.
The Administration's Clear Skies Proposal
Despite its appealing name, the Administration's Clear Skies
proposal will increase air pollution in the U.S. The proposal would
delay the implementation of emissions standards and increase the
overall amount of pollution released from industrial facilities.
Enforcement of the existing Clean Air Act laws will reduce air
pollution in the U.S. faster than the Administration proposal. Beyond
delaying implementation and increasing total emissions, the
Administration proposal would deny state authority to take action to
address air pollution.
We recommend the Subcommittee to transfer the $7.7 million
Administration Clear Skies budget proposal to EPA implementation and
enforcement of the existing Clean Air Act standards.
EPA Enforcement
The ATS is encouraged that the Administration has proposed an
increase in the EPA enforcement budget. However, we would note that
cuts in the 2002 budget have eliminated over 100 positions from the EPA
enforcement and compliance activities. A strong EPA enforcement program
is needed to ensure all Americans can breath clean air.
We are pleased that the President's budget restores the 100 FTE
enforcement positions cuts in the previous budget, however, we note
that federal enforcement activities are still 100 positions FTE short
of what is needed to adequately protect our nation's environment and
health.
EPA Asthma Research
The ATS is pleased that EPA has launched an asthma research
program. The medical community has long known that air pollution can
exacerbate existing asthma. In fact, a recent study published in the
February 2, 2002 issue of Lancet showed a relationship between exposure
to high levels of ozone and the development of asthma in children.\1\
Additional research is needed to confirm and define the links between
air pollution and asthma. The EPA Asthma Research programs will
identify:
---------------------------------------------------------------------------
\1\ R. McConnell, et.al., Asthma in Exercising Children Exposed to
Ozone: A Cohort Study, Lancet, Feb. 2, 2002, p.386-391.
---------------------------------------------------------------------------
--pollutants that contribute to the induction and exacerbation of
asthma, such as air toxics, byproducts of combustion, aerosols,
indoor allergens and environmental tobacco smoke;
--susceptibility factors that contribute to asthma: genetics, prior
health problems, socioeconomic status, residence and exposure
history; and
--risk assessment and risk management of environmental pollutants
relevant to asthma.
The ATS recommends the Subcommittee provide $12 million for the EPA
Asthma Research program.
NAAQS Research
The ATS strongly supports the EPA National Ambient Air Quality
Standards (NAAQS) research program. The NAAQS research program provides
valuable information about the health effects of exposure to polluted
air. The NAAQS also help develop the monitoring and pollution control
technology that will ultimately lead to cleaner air of all of America.
We recommend a $50 million increase in the EPA NAAQS research
program.
Fine Particulate Matter and Ozone
Recent studies have confirmed the significant adverse impact that
existing levels of smog and fine particles have on lung health. Two
recent studies have made clear the need to proceed with enforcement of
the health-based Clean Air standard established 1997. The Lancet study,
referenced before, establishes a link between ozone and the development
of asthma.\2\ A second study published in the March 6, 2002 edition of
the Journal of the American Medical Association establishes a
correlation between exposure to fine particulate air pollution and
increased mortality from lung cancer and cardiopulmonary diseases.\3\
Despite the growing body of evidence that air pollution plays a direct
role in causing lung disease, the EPA has yet to implement the new,
more protective standards finalized in July 1997.
---------------------------------------------------------------------------
\2\ Ibid.
\3\ C. Pope, et.al., Lung Caner, Cardiopulmonary Mortality, and
Long-term Exposure to Fine Particulate Air Pollution, JAMA, March 6,
2002, p. 1132-1141.
---------------------------------------------------------------------------
As the members of the Subcommittee know, the state of the 1997 fine
particulate matter and ozone rules had been tied up in courts until
recently. In March 2002, the U.S. Court of Appeals ruled that the 1997
standards were a proper exercise of EPA's power. Now that all legal
barriers have been removed, it is time EPA began enforcing its 1997
health-based Clean Air Act standards.
The ATS urges the Subcommittee to provide EPA with the resources to
expeditiously implement and enforce the 1997 health-based standards.
New Source Review
We are extremely concerned about Administration initiatives to
weaken the Clean Air Act and undermine the enforcement of the law. In
particular, we are concerned about the effort to undercut the Clean Air
Act's New Source Review Program. New Source Review (NSR) is a simple
concept, made extremely complicated by those who want to avoid
complying with the law. Simply stated, the NSR program requires
facilities that undergo modification that significantly increase
emissions to install pollution control equipment. If the facility does
not increase pollution, NSR does not apply. This program only applies
when pollution increases. The NSR program is reducing pollution and is
saving lives this year and every year. Legislative proposals promising
greater air pollution reductions are no substitute for NSR. Such
proposals must be implemented in concert with NSR, just as the current
acid rain reduction program is. The public demands cleaner air and this
program provides substantial public health benefits.
We urge the Subcommittee to resist efforts by the Administration to
weaken the implementation or enforcement of the EPA New Source Review
program.
Tier 2 and Heavy Duty Vehicles Standards
In 1999, the EPA established new tailpipe and gasoline standards
for cars, light trucks, minivans and SUVs. The EPA also established new
limits on sulfur in gasoline. When fully implemented, this program
would be the equivalent of taking 164 million cars off the road. EPA
calculates that the final rule will prevent as many as 4,300 deaths,
more than 10,000 cases of chronic and acute bronchitis, and tens of
thousands respiratory problems a year.
In 2000, EPA established new emission standards for heavy-duty
vehicles and diesel fuel. These standards provide dramatic pollution
reduction. As a result of this program, each new truck and bus will be
more than 90 percent cleaner than current models. The clean air impact
of this program will be dramatic when fully implemented. This program
will provide annual emission reductions equivalent to removing the
pollution from more than 90 percent of today's trucks and buses, or
about 13 million vehicles.
We encourage the Subcommittee to provide EPA the resources
necessary to proceed with implementation and enforcement of the Tier 2
and Heavy-Duty Vehicle Standards.
Ozone Depleting Gases Transition
The ATS supports the work of the EPA and the Food and Drug
Administration (FDA) to complete the transition process of removing
ozone-depleting gases from the U.S. market place as called for the
Montreal Protocol. One of the few remaining uses of ozone deleting
gases is chlorofluorocarbon (CFC) propelled drugs used to treat asthma
and chronic obstructive pulmonary disease. Last year, the FDA published
criteria for reviewing essential use exemptions for CFC propelled
medications as non-ozone depleting drug formulations became available.
The ATS, in conjunction with the American Lung Association and
several other physician and patient organizations, has filed a citizen
petition asking the FDA to end the essential use exemption for CFC
propelled albuterol sulfate--a drug used to treat asthma and other
obstructive lung diseases. Currently, there are two manufacturers who
produce a non-ozone deleting formulation of albuterol sulfate. A third
manufacturer is seeking FDA approval of its non-ozone depleting
formulation of albuterol sulfate. Data from the U.S. and European
markets has proven the new formulations to be safe and effective.
We encourage the EPA to work with the FDA and the Department of
State to develop a position to achieve adoption of a Protocol decision
this year that deems albuterol non-essential for developed countries by
2005 and takes other steps to bring timely and effective closure to the
Protocol's essential use exemption.
In conclusion, lung disease is a growing problem in the United
States. It is America's number three killer, responsible for one in
seven deaths. The ATS requests Congress' continued support for the VA
and the EPA research programs to enable the pulmonology and critical
care medicine community to continue with its efforts to find better
ways to treat and prevent lung disease.
______
PREPARED STATEMENT OF THE AMERICAN LUNG ASSOCIATION
The American Lung Association is pleased to offer this testimony to
the Committee on Appropriations Subcommittee on Veterans, Housing and
Urban Development and Independent Agencies on the programs of the
Environmental Protection Agency. The American Lung Association,
established in 1904, is one of the nation's oldest voluntary health
organizations. The American Lung Association is committed to fighting
lung disease and promoting lung health.
Lung disease is the third leading cause of death in the U.S.--
responsible for one in every seven deaths. More than 35 million
Americans suffer from a chronic lung disease. These diseases cost the
U.S. economy an estimated $144.9 billion annually. Lung disease
represents a spectrum of chronic and acute conditions that interfere
with the lung's ability to extract oxygen from the atmosphere, protect
against environmental and biological assaults, and regulate a number of
vital metabolic processes. We are talking about diseases that are very
familiar--such as asthma, emphysema, chronic bronchitis, lung cancer,
tuberculosis, pneumonia, and influenza--and others, which are much less
well known. Lung disease touches virtually every American.
Lung diseases are made worse by air pollution. How well or poorly
our lungs perform depends on the quality of air around us, making the
impact of air pollution inescapable.
For nearly 40 years, the American Lung Association has conducted
scientific, public health and educational programs to fight air
pollution and to improve the quality of the air we breathe. We remain
strong supporters of the Clean Air Act and its amendments. We can
attest to the significant impact that the Clean Air Act has had in
improving the quality of our nation's air.
However, much remains to be done. EPA's own estimates show that
over 170 million people live in areas with unhealthy levels of smog and
soot based on current standards. We know people living in these areas
suffer air pollution-related asthma attacks, are hospitalized for
aggravated lung disease, lose days at work, school and play, and even
face an early death.
Research has shown that air pollution is causing the premature
death of literally thousands of people due to complications linked to
air pollution exposure.
ADMINISTRATION'S AIR POLLUTION LEGISLATION
The Administration's air pollution legislation, known as Clear
Skies, will weaken the Clean Air Act and severely undermine efforts to
curb air pollution. The plan will not reduce power plant emissions
enough to clean the air or protect the nation's health. In fact, timely
enforcement of the current Clean Air Act will provide greater pollution
reductions sooner than the Administration's bill.
Unfortunately, the Administration is currently focused on attempts
to avoid implementation of existing clean air regulations. The
Administration's proposal, which would not be fully implemented for
more than two decades, would delay reaching important clean air goals
even further. The plan preempts state authority to aggressively pursue
clean air for their citizens. Indeed, air pollution clean-up plans
needed to meet public health standards for smog and fine particles
issued in 1997 are still years away.
The American Lung Association strongly encourages the Subcommittee
to redirect the $7.7 million proposed to fund Clear Skies into
implementing the ozone and fine particle standards.
FEDERAL ENFORCEMENT FUNDING
We are pleased to see that the President's budget has proposed an
increase for Environmental Protection Agency enforcement. The $21
million increase will add 100 positions. Unfortunately, due to previous
cuts, the enforcement program is still down 100 positions from the
fiscal year 2001 proposed level. We have much cleaner air today than we
did in 1970 because of EPA's ability to enforce the law. Without strong
continued federal leadership, the quality of our nation's air will
suffer.
The American Lung Association strongly encourages the Subcommittee
to increase the enforcement and compliance program to restore all the
positions that have been eliminated.
ASTHMA RESEARCH STRATEGY
Last fall, the American Lung Association joined EPA Administrator
Whitman to announce the release of the EPA Office of Research and
Development's Asthma Research Strategy. The Asthma Research Strategy
will guide EPA research efforts to address the significant issues of
exposures, effects, risk assessment and risk management of
environmental pollutants relevant to asthma.
The Asthma Research Strategy will address the following issues:
--pollutants that contribute to the induction and exacerbation of
asthma, such as air toxics, byproducts of combustion, aerosols,
indoor allergens and environmental tobacco smoke;
--susceptibility factors that contribute to asthma: genetics, prior
health problems, socioeconomic status, residence and exposure
history; and
--risk assessment and risk management of environmental pollutants
relevant to asthma.
We were pleased that the Administration requested an additional $1
million for children's asthma research in this year's request bring the
total request to $6.2 million.
The American Lung Association strongly encourages the Subcommittee
to double the investment in children's asthma research to $12.4
million.
AMBIENT AIR RESEARCH
The American Lung Association strongly supports the EPA National
Ambient Air Quality Standards research program. This research program
provides valuable information on the health effects of exposure to
polluted air. This research is essential for the development of the
most cost effective strategies and technologies needed for protecting
public health from air pollution.
The American Lung Association recommends a $50 million increase in
the EPA National Ambient Air Quality Standards research program.
VEHICLES STANDARDS
This year, EPA will propose new standards for non-road diesel
engines. Commonly referred to as heavy equipment, this category
includes vehicles used in a variety of applications in construction and
agriculture. We expect EPA to propose emissions standards and fuel
standards for these vehicles that are comparable to the new standards
for on road heavy-duty vehicles and fuels. This rule will save
thousands of lives each year. This proposal builds on EPA's previous
initiatives to clean up heavy-duty diesel trucks and buses and cars,
light trucks and SUVs. We expect this program to provide even greater
benefits than the on-road rule. The American Lung Association strongly
supports this EPA initiative that will bring tremendous air quality and
public health benefits. Some have suggested that EPA reopen the widely
supported rule for on road heavy-duty trucks and buses. The American
Lung Association strongly urges EPA to move ahead with the new non-road
rulemaking without reopening the on-road rule.
The American Lung Association encourages the Subcommittee to
provide EPA the resources necessary to proceed with non-road rulemaking
and finalize the rule as soon as possible.
NEW SOURCE REVIEW
We are extremely concerned about Administration initiatives to
weaken the Clean Air Act and undermine the enforcement of the law. In
particular, we are concerned about the effort to undercut the Clean Air
Act's New Source Review program. New Source Review, also known as NSR,
is a simple concept, made extremely complicated by those who want to
avoid complying with the law. Simply stated, the NSR program requires
facilities that undergo modification that significantly increase
emissions, to install pollution control equipment. If the facility does
not increase pollution, New Source Review does not apply. The NSR
program is reducing pollution and saving lives this year and every
year. Legislative proposals promising the potential of greater air
pollution reductions in the years to come are no substitute for this
effective clean-up program.
The American Lung Association urges the Subcommittee to resist
efforts by the Administration to weaken the implementation or
enforcement of the EPA New Source Review program.
FINE PARTICULATE MATTER AND OZONE
On March 26, 2002, the D.C. Circuit of the United States Court of
Appeals rejected the last of the industry challenges to the National
Ambient Air Quality Standards issued by the EPA in July 1997 for PM 2.5
(fine particles) and 8-hour levels of ozone smog. After a five-year
delay caused by specious industry litigation, we expect EPA to treat
implementation of these standards as a matter of great urgency. We urge
this committee to ensure that the agency does so.
EPA's review of the health standards is once again overdue. The
review of the National Ambient Air Quality Standards for Ozone and
Particulate Matter was supposed to be completed by July 2002. It is
critical that the EPA devote sufficient resources to complete the
timely review of the health based air pollution standards.
The American Lung Association urges the Subcommittee to direct EPA
to complete the timely review of the ambient air quality standards.
MDI TRANSITION
The American Lung Association is continues to work with the EPA and
the Food and Drug Administration (FDA) to complete the transition
process of removing ozone depleting substances from the U.S. market
place as called for the Montreal Protocol. One of the few remaining
uses of ozone depleting substances are CFC propelled drugs used to
treat asthma and chronic obstructive pulmonary disease. Last year, the
FDA published criteria for reviewing essential use exemptions for CFC
propelled medications as non-ozone depleting drug formulations became
available.
The American Lung Association, in conjunction with several of
physician and patient organizations, has filed a citizen petition
asking the FDA to end the essential use exemption for CFC propelled
albuterol sulfate--a drug used to treat asthma and other lung diseases.
Currently, there are two manufacturers who produce a non-ozone
depleting formulation of albuterol sulfate. Data from the U.S. and
European markets have proven the new formulations to be safe and
effective.
The American Lung Association encourages the EPA to work with the
FDA and the Department of State to develop a position to achieve
adoption of a Protocol decision this year that deems albuterol non-
essential for developed countries by 2005 and takes other steps to
bring timely and effective closure to the Protocol's essential use
exemption. We believe this action is an important step to fulfill the
U.S. commitment to phase-out all uses of ozone-depleting substances.
The American Lung Association urges the Subcommittee to support the
transition process to remove ozone-depleting gases.
The American Lung Association thanks the Subcommittee for
consideration of its views. We look forward to working with you to
further promote and protect the health of the American public.
______
PREPARED STATEMENT OF THE ASSOCIATION OF MINORITY HEALTH PROFESSIONS
SCHOOLS
Mr. Chairman and members of the subcommittee, thank you for the
opportunity to express the views of the Association of Minority Health
Professions Schools (AMHPS).
I am Dr. John E. Maupin Jr., President of Meharry Medical College
in Nashville, Tennessee and President of AMHPS. AMHPS is an
organization which represents twelve (12) historically black health
professions schools in the country. Combined, our institutions have
graduated 50 percent of African-American physicians and dentists, 60
percent of all the nation's African-American pharmacists, and 75
percent of the African-American veterinarians.
AMHPS has two major goals: 1) to improve the health status of all
Americans, especially African-Americans and other minorities; and 2) to
improve the representation of African-Americans and other minorities in
the health professions. We are working toward achieving this goal by
seeking to strengthen our institutions and fortify other programs
throughout the nation that will improve the role of minorities in the
provision of health care and research.
AGENCY FOR TOXIC SUBSTANCES AND DISEASE REGISTRY
Congress created the Agency for Toxic Substances and Disease
Registry (ATSDR) to implement the health-related sections of law that
protect the public from hazardous wastes and environmental spills of
hazardous substances. The mission of ATSDR is to serve the public by
using the best science, taking responsive public health actions, and
providing trusted health information to prevent harmful exposures and
illness related to toxic substances.
ATSDR works in partnership with Environmental Protection Agency,
the Centers for Disease Control and Prevention, and the National
Institute of Environmental Health Sciences to carry out its public
health activities. Since the September 11th attacks, ATSDR has worked
with other federal, state, and local agencies to respond to the
enormous aftermath of this tragedy. Approximately, one-fourth of the
agency's 430 employees were directly involved in the response to 9/11
at some time during fiscal year 2002.
ATSDR is performing critical work in the field of environmental and
toxicological studies that has a profound impact on public health. In
order to carry out the level of activity that is called for in its
mission statement, AMHPS recommends an appropriation of $95 million for
ATSDR in fiscal year 2004, an increase of $12.2 million over fiscal
year 2003.
THE ATSDR/AMHPS COOPERATIVE AGREEMENT ON ENVIRONMENTAL HEALTH AND
TOXICOLOGY RESEARCH
In 1992, ATSDR identified a need for enhanced information on 38
hazardous substances. Through a cooperative agreement between ATSDR and
the Minority Health Professions Foundation (MHPF), the historically
black health professions schools that I represent are engaged in
research on twelve of these priority hazardous substances. They
include:
--Lead
--Mercury
--Benzene
--Cadmium
--Benzo (a) pyrene
--Flouranthene
--Trichlorocthylene
--Toluene
--Zinc
--Manganese
--Chlordane
--Di-n-butylphthalate
The productivity of this research program is evidenced by the
number of publication and scientific presentations made by the funded
investigators. To date, more that 55 manuscripts reporting the finding
of the various research projects have been published in peer-reviewed
and prestigious scientific journals. These journals include: Brain
Research, Neurotoxicology, Journal of Neurochemistry, and Environmental
Health Prospectives.
Moreover, investigators have made more than 120 presentations at
national and international scientific meetings, including the annual
meeting of the Society of Toxicology, the Experimental Biology meeting,
the International Congress of Toxicology meeting, and the International
Society of Psyschoneuropharmacology meeting. Finally, the AMHPS/ATSDR
Cooperative Agreement has contributed significantly to the training of
students in toxicology and environmental health. Annually, more than 30
students, both graduate and undergraduate, are actively involved in the
research program.
Mr. Chairman, AMHPS and ATSDR are completing ten years of
successful research. We expect to continue with a new cooperative
agreement in fiscal year 2003. In addition to basic toxicological
research, the new cooperative agreement will focus on: 1) translation
of environmental science into environmental medicine and public health
practice; 2) development of a surveillance system to track disease,
disability and dysfunction among targeted populations in communities of
concern, and 3) investigations of the role of the environment in
eliminating racial/ethnic health disparities.
Traditionally, the AMHPS/ATSDR research partnership has been
supported by ATSDR at a level of $4 million a year. For fiscal year
2004, we encourage the subcommittee to support this important
collaboration by directing $4 million within the ATSDR budget for the
cooperative agreement.
Thank you very much for the opportunity to present the views of the
Association of Minority Health Professions Schools.
______
PREPARED STATEMENT OF THE EZ/EC FOUNDATION CONSORTIUM
I am Janet Levy, Executive Director of the EZ/EC Foundation
Consortium. The Consortium is a partnership of ten foundations formed
in 1997 to support successful implementation of the Empowerment Zone/
Enterprise Community Initiative and to help others learn from the work
of EZ/EC sites. Our foundation members have included the Annie E. Casey
Foundation, Cleveland Foundation, East Bay Community Foundation, Ford
Foundation, Greater Kansas City Community Foundation, William and Flora
Hewlett Foundation, Robert Wood Johnson Foundation, W.K. Kellogg
Foundation, John D. and Catherine T. MacArthur Foundation, and
Rockefeller Foundation.
We appreciate this opportunity to respond to a request by the
Empowered Communities Caucus to submit for both Senate and House
Appropriations Committee consideration some insights about the Round II
Empowerment Zones, based on effective approaches to community
revitalization that the philanthropic sector has gained through its
work over the past decade. Our experience points, in particular, to the
importance of complementing incentives designed to create employment
opportunities with strategies that help people prepare for and perform
well in those jobs and that address other aspects of healthy community
life. We also have learned of the important contribution to sustained
success that comes from engaging all parts of the community in a strong
partnership, a process that rarely is easy but which promises rich
rewards to those who dedicate the required effort.
These insights bear directly on an issue that is before the
Subcommittees--whether continued grant-funded strategies are necessary
to complement tax incentives in achieving successful and sustainable
revitalization. Tax incentives are a promising mechanism for
encouraging businesses to expand employment opportunities. But these
mechanisms are not designed to nor can they support the workforce
development, quality of life, and engagement strategies that, as we
indicate above, are an essential complement in a revitalization effort.
These latter strategies require a direct outlay of dollars. By assuring
the availability of grant funds which can be used for these purposes--
whether for programming itself or to leverage even greater commitments
of funds from state and local government and the nonprofit and
philanthropic sectors--the federal government both secures and enhances
the investment it is making through the provision of tax incentives.
Based on our experience, we firmly believe that a combination of
incentives and grants are the most promising route to achieve the
laudable objectives of the EZ/EC Initiative.
FOUNDATION-SPONSORED COMMUNITY REVITALIZATION EFFORTS
The Consortium's member foundations, as well as many others, have a
substantial history of commitment to low-income communities and of
investment in efforts to revitalize areas of deep, persistent poverty.
Beginning about a decade ago, these foundations launched a new
generation of such efforts. Among the most notable in terms of their
contribution to the current state of knowledge about community
revitalization have been the Casey Foundation's New Futures, Rebuilding
Communities and current Neighborhood Transformation and Family
Development Initiative, the Ford Foundation's Neighborhood and Family
Preservation Initiative, and the Rockefeller Foundation's Community
Planning and Action Program.
These experiments helped form the basis of new thinking about how
best to challenge poverty and provide poor communities and their
residents with greater economic opportunity and an improvement in the
overall quality of life. Rather than focusing on fixing an isolated
problem, such as housing, they considered the community as a whole. A
vibrant community which supports its families and nurtures its
children, offers jobs, decent and affordable housing, safety, good
quality schools and outside-school opportunities for children and
youth, and special supports when crises occur that threaten well-being.
Effective revitalization likewise needed to be multifaceted,
incorporating simultaneous and coordinated efforts to address economic
opportunity, the skills and capacities of the community's residents,
quality of life issues such as crime, and strengthening of the
community's social fabric.
These foundation-sponsored experiments also took the position that
how decisions are made about programmatic content may be as important
as the content itself. On the one hand, acknowledging the unique
understanding each community has of its particular assets,
opportunities and needs, the foundations gave their local partners a
great deal of latitude in selecting the specific programmatic
strategies they would pursue. But at the same time, the foundations
pushed for a new kind of local decisionmaking, which would engage a
broad range of stakeholders and would specifically encourage serious
and consequential participation by residents of the targeted areas.
From these experiments emerged guiding principles for the
revitalization approach that came to be known as ``community-
building'':
--Significant and sustainable revitalization requires simultaneous
and coordinated economic development, investment in a
community's human capital, and help to strengthen the social
fabric of the community.
--Successful, sustainable revitalization requires harnessing the
knowledge, resources, capacity and commitment of all those with
a stake in the well-being of the community--the public sector,
the private sector, the nonprofit sector, and the residents.
--Successful, sustainable revitalization is not a quick process. It
takes time and patience first to do the planning and build the
partnerships that provide a solid foundation, and then to
attract the jobs and implement the many projects that will be
needed to counter what often have been many years of
deteriorating conditions.
PHILANTHROPY AND THE EZ/EC INITIATIVE
No matter how ambitious the efforts of the philanthropic sector to
improve conditions in low-income communities, the resources of that
sector could never come close to addressing the true scope of need.
Therefore, foundations were heartened at the renewed commitment of the
federal government reflected in the EZ/EC Initiative, especially
because that commitment was grounded in the principles of sound
community-building cited above.
The philanthropic sector's experience was tapped even at the design
stage of the EZ/EC Initiative, when the Carnegie Corporation convened a
seminar for federal officials in which foundation executives, staff and
experts shared the knowledge gained through a decade of
experimentation. As the Initiative unfolded, foundations invested
locally in the development of applications and then in implementation.
Because it was the only entity trusted by the many diverse
stakeholders, one community foundation even agreed to serve as the lead
entity for the local effort.
Complementing these individual actions, a group of foundations
formed the EZ/EC Foundation Consortium to support successful
implementation of the Initiative and to help others learn from the work
of the sites. Our work has included various forms of technical
assistance to sites, with special emphasis on peer exchange. Most
recently, for example, we convened a meeting of Round I and Round II EZ
directors, giving them an opportunity to share experiences and ideas on
topics such as the use of tax incentives, ways to measure and report
results, and ways to sustain accomplishments over time. We also have
produced or have under development a variety of publications. Some give
an overview of the EZ/EC Initiative in ways that complement
publications by the federal government and researchers--for example,
presenting photographs by young people that show how the Initiative is
affecting their families and communities. Other publications under
development will explore in some depth particular aspects of the
Initiative, such as strategies to promote broad participation and the
use of tax incentives by sites.
LESSONS FROM THE WORK OF EZ/EC SITES
The Consortium has been a partner with and student of the work of
EZ/EC sites since the early days of implementation. This work is a rich
source of lessons that will be valuable guides for Round III
Empowerment Zones and Renewal Communities, as well as for future
efforts to revitalize distressed communities.
Most relevant for the immediate purposes of this Subcommittee, the
long experience of the Round I sites in particular offers specific
insights about the combined and complementary contributions to be made
by both tax incentives and flexible federal grants. Those communities
had the benefit of assured funding throughout the ten-year designation.
Their experience suggests that tax incentives that are designed well
and marketed effectively can be an important tool to foster economic
revitalization of distressed communities, especially with respect to
large businesses. But, just as economic development itself is not
enough to achieve and sustain the deep-reaching change that is needed,
so too is it important to complement tax incentives with resources
through which critical areas beyond economic development can be
addressed.
Federal grant dollars have been essential in allowing EZ/EC sites
to pursue valuable components of revitalization such as:
--Helping people prepare for, obtain and perform well in the jobs
made available through economic development activities.--Some
community residents begin with the experience and personal
wherewithal to take advantage of expanding economic opportunity
on their own. But, for many others, help in developing a resume
and presenting oneself to a potential employer, or in acquiring
the skills that employers are seeking, or in overcoming
barriers to employment may be essential. With federal grant
dollars, EZ/EC sites have been able to address not just job
development, but also workforce development, offering the pre-
employment, connection to work, and on-the-job services that
have helped many community residents take advantage of
expanding opportunities to achieve real change in economic
well-being.
--Addressing key quality-of-life issues that affect a community's
ability to attract and retain businesses and to nurture strong
and healthy families.--Businesses care about the financial
``bottom line,'' which potentially is aided by tax incentives,
but they also care about the environment in which they operate.
A low crime rate assures safety and security for their workers
and their physical plant. The ability of workers to find child
care and help when crises arise reduces absenteeism and
turnover that detract from a business's financial success.
Young people who are getting a good education and developing
their talents through positive activities stay out of trouble
and promise businesses a strong and capable workforce in the
future. EZ/EC sites have used federal dollars, sometimes
directly for programming but more often to leverage major
contributions from other sources and better coordination of
existing services, to reduce crime, expand the availability and
quality of child care, and offer children and youth healthy and
productive ways to spend their time. At Detroit's Family Place
and Louisville's Nia Center, families can readily find the
services that once were scattered and difficult to access. In
the Rio Grande Valley, a decrepit facility that lacked even
running water has been replaced by a brand new Boys and Girls
Club built with the aid of an Empowerment Zone challenge grant.
At the United Teen Equality Center, developed with leadership
from the Lowell Enterprise Community, adolescents of diverse
ethnicities and backgrounds no longer face conflict on the
streets, but now gather in a place that nurtures cooperation
and positive growth.
--Bringing all stakeholders together in effective partnerships that
allow each group to tap its particular strengths to contribute
to overall success.--A community's residents, government,
business, and nonprofit organizations all have a stake in
revitalization efforts and the community's well-being. And each
group brings assets to a potential effort--dollars to spend,
the promise of new jobs, an understanding of the market that is
created by a community's history, conditions, and desires. But
each group also brings its own frame of reference, experiences,
and operating style, and these must be woven together to shape
a collaborative venture that can pursue an ambitious and
complex agenda. These are not easy partnerships to form and
sustain, and not all EZ/EC sites have been successful. But for
those that have effectively used federal dollars to build the
capacity of the community and to help the diverse voices find
common ground in a shared vision for success, we see not only
near-term progress but also a foundation of ongoing leadership.
Village Centers in Baltimore and Community Trust Boards in
Philadelphia, for example, are vehicles through which community
residents have gained an understanding of economic development
and which now provide a forum where developers, residents, and
government can combine their assets to foster continuing
expansion of economic opportunity and improvement in the
community's quality of life for years to come.
In summary, the experience of the philanthropic sector with
community revitalization efforts and the Consortium's observations of
the EZ/EC Initiative to date point strongly to the importance of
working simultaneously on multiple fronts--expanding economic
opportunity, investing in the community's human capital, and
strengthening the community's social fabric. To do so requires vehicles
as varied as the strategies. Tax incentives are one tool. But equally
important are flexible dollars through which issues other than economic
development can be addressed. For this reason, we believe that the
success of Round II Urban Empowerment Zones likely will rest in
substantial measure on their ability to draw on the full range of
benefits which were envisioned when they were created.
______
PREPARED STATEMENT OF THE NATIONAL SERVICE-LEARNING PARTNERSHIP
The National Service-Learning Partnership calls upon Congress to
include young people in citizen service by increasing the Federal
investment in Learn and Serve America.
I am Anthony Welch, Chair of the Board of Directors of the National
Service-Learning Partnership. With more than 3,000 organizational and
individual members, the Partnership is the nation's largest leadership
organization devoted to strengthening service-learning. The Partnership
urges you to increase funding for the Learn and Serve America program
administered by the Corporation for National Service.
Youth Citizen Service.--In his inaugural address, President George
W. Bush challenged Americans to be ``citizens, not spectators'' and to
help build ``communities of service and a nation of character.'' More
recently, noted education historian, Dr. Diane Ravitch, noted that,
``We must teach students to appreciate and defend our democratic
institutions.'' During this time of great national purpose, we cannot
overlook young people's eagerness to serve. In order to do so, however,
they need the kind of opportunities and support that the educational
method, service-learning, provides. The National Commission on Service-
Learning, chaired by former Senator John Glenn, called service learning
``the single best way to educate young people for active citizenship in
a democracy.'' Service-learning offers unique support for the American
commitment to public schooling as a necessity for creating an informed
citizenry.
Service-learning.--Service-learning is a powerful form of service
in which students design projects to meet community needs as part of
their academic and civic studies. Using service-learning, elementary
school students tutor younger students, and both improve their mastery
of essential literacy skills. Math students make calculations that
persuade the local authorities to install a traffic light near their
schools so as to reduce accidents at a dangerous corner. History
students research the local heroes identified on plaques in their
community and share what they have learned at the annual Memorial Day
ceremony. Language arts students hone their writing skills by
organizing a campaign to reduce bullying on their school buses.
Service-learning offers students such as these the kind of balanced
education Americans want for students, according to a poll conducted in
the fall of 2000 by Roper Starch Worldwide. Americans believe that
service-learning can help prepare young people for work, citizenship,
and lifelong learning. Furthermore, service-learning elicits the kind
of engagement with learning that reinforces students' motivation to
learn. When students apply new knowledge and skills to real challenges
outside the classroom, they are far less likely to ask their teachers
``Why do I have to learn this?''
Prevalence of service-learning.--One third of public school
students participate in service-learning. Most of this activity is
supported by local resources. However, since former President George
H.W. Bush signed the National and Community Trust Act of 1990, an
important grant program under that law, Learn and Serve America, has
engaged nearly 10 million students in serving others and their
communities. Currently, 50 states and territories receive funds from
Learn and Serve America, the only Federal program dedicated to
promoting and supporting service-learning. Nearly 1.5 million students
each year are involved in grassroots initiatives that address local
concerns, and about 80 percent of each state's formula grant goes
directly to support for school-community partnerships.
Impact of Service-Learning.--In addition to being a cost-effective,
service-learning works. A growing body of scholarly research and other
evaluations demonstrate that when well implemented, service-learning
improves students' academic achievement, civic engagement, preparation
for the world of work, and responsible behavior. Alan Melchior of
Brandeis University estimates that each dollar invested in service-
learning returns $4 in investment in the community. Service-learning
research has identified many ways in which service-learning improves
students' civic and academic engagement while strengthening their
communities.
--Service-learning promotes youth civic engagement.--Service-learning
is one of the most effective ways for young people to practice
the habits of civic responsibility. Scholars from universities
across the United States have found that students engaged in
high quality service-learning projects showed an increase in
the degree to which they felt aware of community needs,
believed that they could make a difference, and were committed
to service now and later in life. For instance, a study by Dr.
James Younis at Catholic University and Dr. Miranda Yates at
Brown University found that high school students who
participated in service-learning are more likely to be engaged
in a community organization and are more likely to vote 15
years after their participation in the program than those who
did not participate.
--Service-learning supports students' academic achievement.--When
rigorous study in academic disciplines is linked with serious
work on real needs, students' motivation for learning
increases. Students participating in service-learning have
better grades and rates of attendance, as well as improved
attitudes to school.
--Service-learning strengthens communities.--Community-based
organizations can do more with the help of students engaged in
service-learning. Furthermore, community members who
participate in service-learning see youth as valued resources
and positive contributors to community.
The Need for Federal Action in the Fiscal Year 2004 Appropriations
Cycle.--Within the Corporation for National and Community Service,
Learn and Serve America serves the most participants. Despite a record
of success, Learn and Serve America funding has remained essentially
flat for the past 10 years. Increasing the Federal investment in Learn
and Serve America will give a larger proportion of younger Americans
the support they deserve to answer the national call to serve
neighborhood and nation.
Partnership asks for Increased Learn and Serve America Funding.--
The Partnership asks this subcommittee to increase funding for service-
learning through an incremental increase of $18 million during fiscal
year 2004: $12 million to increase funding for grants made to K-12
schools, tribes, and community-based organizations as part of the Learn
and Serve program and $6 million to increase designated resources for
technical assistance for Learn and Serve America grantees, including
preparing practitioners to link service-learning to the teaching of
history, civics, and civic education.
A Time to Preserve and Protect Democracy.--Citizen service is for
all of us. High-quality service-learning should become a core element
of the educational experience of every elementary, middle, and high
school student in the United States. By offering service-learning,
policymakers, educators, and parents open the door to a multi-faceted
education so that students may walk through it to become better
citizens, better learners, and better workers.
______
PREPARED STATEMENT OF THE ALLIANCE TO SAVE ENERGY
INTRODUCTION
My name is David Nemtzow. I am the President of the Alliance to
Save Energy, a bi-partisan, non-profit coalition of business,
government, environmental, and consumer leaders dedicated to improving
the efficiency with which our economy uses energy. Senators Charles
Percy and Hubert Humphrey founded the Alliance in 1977. The leadership
of the Alliance is also a partnership between the private sector and
government chaired by Senator Byron Dorgan (D-ND) and co-chaired by
Dean Langford the former CEO of Osram Sylvania. Over seventy companies
currently participate in the Alliance's Associates program and with
your permission Mr. Chairman I would like to include for the record a
complete list of the Alliance's Board of Directors and Associates. This
list includes the nation's leading energy efficiency firms, electric
and gas utilities, and other companies committed to promoting sound
energy use.
Thank you for the opportunity to testify regarding the energy-
related components of the Environmental Protection Agency's (EPA)
fiscal year 2004 budget request. Specifically, I respectfully urge you
to significantly increase your support for the EPA's Energy Star
program. The Energy Star program is an entirely voluntary program that
yields significant economic returns to our nation's consumers while
generating considerable environmental benefits for our nation--all
through energy efficiency.
The Alliance has a long history of advocating for, as well as
researching and evaluating, federal efforts to promote energy
efficiency. While many of these efforts include laws passed by this
Congress and federal regulations and standards issued pursuant to those
laws, we especially applaud efforts that rely on cooperative
partnerships between government and business and between the federal
and state governments, and not just government mandates. EPA's climate
programs are entirely voluntary and address the national goals of
broad-based economic growth, environmental protection, national
security and economic competitiveness at the same time. The EPA's
Energy Star program is a shining example of such a program. The Climate
Protection Division at EPA which operates the Energy Star program works
closely with the private sector manufacturers, retailers, building
owners, and energy service providers, as well as state and local
governments, non-profits, and other organizations to promote energy
efficient products and buildings. And they do it extremely well--for
every tax dollar spent by the Energy Star program, $75 or more of
energy savings are returned. Last year alone, Americans with the help
of Energy Star saved enough energy to power 15 million homes and avoid
the greenhouse gas emissions from 14 million cars--all while saving
over $6 billion.
ENERGY EFFICIENCY AS A VALUABLE ENERGY RESOURCE
Mr. Chairman, over the past 30 years, energy efficiency has met
more of the country's energy needs than any other single domestic
energy resource. Energy efficiency is a significant and valuable
resource. Furthermore, energy efficiency measures are powerful and
dynamic policy tools through which prices, supply, and emissions can be
radically adjusted. While the Alliance to Save Energy believes that an
effective energy policy must include a combination of measures that
provide electricity, heating fuel, and motor fuel to Americans, it also
believes that we must first go after the resource that is cheapest, can
be delivered most quickly, and can stand up to all environmental
scrutiny--that resource is energy efficiency.
Energy efficiency gains have significantly improved the way we use
energy. The U.S. economy grew nearly five times faster than did energy
use from 1973 to 2001. A refrigerator sold today uses about 70 percent
less energy than one built in the early 1970s. Since 1973, energy
efficiency has saved the nation 27 quadrillion Btus (quads) of energy
annually, more than one-fifth of total consumption, and about $150
billion each year. The energy efficiency industry has become a vibrant
part of the American economy. More than 5,000 companies provide energy-
saving equipment and services, contributing over $10 billion and a
quarter-million jobs to our economy each year.
But despite these new technologies and the integration of energy
efficiency into the nation's energy policies and economy, we have
barely scratched the surface of energy efficiency's potential.
Technologies that dramatically increase the efficiency of electric
distribution lines, lighting systems, air conditioning and
refrigeration, and other products are moving out of laboratories. It
seems that every year technological developments bring more and better
measures at our disposal to reduce electricity demand, make homes more
energy-efficient, and go further on less gasoline. But Mr. Chairman, we
must make sure that we are able to maximize these resources.
HOW ENERGY STAR CAPITALIZE ON THIS RESOURCE
Mr. Chairman, EPA's Energy Star program has proven to be an
extremely effective way for this nation to capitalize on the potential
of energy efficiency as a resource. In fact, over the last decade,
Energy Star successfully promoted the use of advanced technologies that
are quite common today such as power management systems for office
equipment, LED traffic lights, and low standby energy use. The
President's National Energy Plan even recommends that the Energy Star
program be expanded to include schools, retail buildings, health care
facilities, and homes, and that the Energy Star labeling program be
extended to cover more products. And, Mr. Chairman, the President Bush
has publicly declared his strong support of the program.
Energy Star's voluntary partnership program--which includes Energy
Star Buildings, Energy Star Homes, Energy Star Small Business, and
Energy Star Labeled Products--works by removing marketplace barriers to
existing and emerging technologies, resulting in faster deployment of
energy efficient technology into the residential and commercial sectors
of the economy.
Rather than providing financial subsidies or tax breaks, Energy
Star develops voluntary partnerships and provides clear, reliable
information to the public. The Environmental Protection Agency is
uniquely qualified to operate these voluntary programs in the public
interest with the confidence of market participants. The program has
proved successful in providing information on technology opportunities,
generating awareness of energy efficient products and services, and
educating consumers about life cycle energy savings so that consumers
can make informed purchases. In fact, the Energy Star label is a
nationally recognized label for energy efficiency, used by many
(including retailers and utilities) to promote efficiency. According to
the EPA, as of 2002, the label has achieved more than forty percent
awareness among the public.
Providing the catalyst for many businesses, state and local
government institutions, and consumers to invest in energy efficiency,
Energy Star helps overcome market barriers through brand recognition,
information, and positive publicity. Because Energy Star takes a
strategic approach to energy management, it can produce twice the
savings--savings for the environment and for consumers.
ABOUT THE ENERGY STAR PARTNERSHIPS
Energy Star is composed entirely of voluntary partnerships, and
they have grown since the early 1990s to include thousands of
partnerships with product manufacturers, private and public building
owners and operators, homebuilders, small businesses, utilities, and
retailers. The sheer number of these partnerships is a testament to the
fact that energy efficiency delivers ``pollution prevention at a
profit.''
Energy Star serves broad constituencies across every state in the
country. Energy Star includes over 1,250 manufacturing partners of over
35 different product categories, who make and market over 18,000
different models of Energy Star qualified products. Energy Star assists
over thousands of small businesses with their efforts to maximize the
energy efficiency of their facilities. Energy Star's work with partners
further advances the education of energy efficiency and the reduction
in energy consumption. For example, by working with builders, Energy
Star helps the customers of those builders make smart decisions--
decisions that will save the consumer money and the country pollution--
for as long as the home is standing. To date, more than 3,000 builders
have built over 100,000 Energy Star-qualified homes, locking in
financial savings for homeowners of more than $26 million annually. The
Energy Star Building Partnership currently represents 17 percent of the
U.S. building floor space.
Recently, the Alliance to Save Energy asked many of Energy Star's
partners if they would support our request for a significant increase
in funding for these important programs. The response was remarkable.
Over 650 businesses, from large businesses like Merrill Lynch & Co.,
Inc., the Target Corporation, and Exxon Mobil to smaller businesses
like Target Aluminum, Inc. and Thomas Homes, Inc. (in Bridgeton, MO and
Dunkirk, MD, respectively) and even schools such as the Howard County
Public School System in Maryland pledged their support for these
important programs. Each member of the Subcommittee will receive a copy
of this letter with the list of businesses. With your permission Mr.
Chairman I would like to include for the record a copy of this letter.
Lowe's Companies, Inc., another company that has pledged their
support for increased funding of the program, also recently committed
to increasing nationwide sales of Energy Star qualified products in by
twenty percent in 2003. While saving their customers money with reduced
utility bills, Lowe's will also helped to reduce the emissions of
greenhouse gases.
Energy Star proves that environmental protection can not only be
achieved without harming the economy, but also that such protections
can act to boost consumer savings and economic growth. Energy Star
provides the catalyst for many businesses, state and local government
institutions, and consumers to invest in energy efficiency, which in
turn yields multiple private and public benefits. It does this by
providing access to information, improving brand recognition, and
reporting positive publicity. This voluntary partnership program
reduces pollution through cost-effective measures; promotes economic
growth by stimulating investment in new technology; and helps ensure
the reliability of our electric system by reducing peak demand.
INVESTMENTS IN ENERGY STAR PAY BACK FOR YEARS
While consumers who purchase Energy Star-labeled products save
through the life of the product, product manufacturers get the economic
boost and incentives from the purchases of these products. According to
EPA, consumers and businesses saved more than $6 billion in 2002 alone
by investing in energy-efficient technologies. In addition, EPA
predicts cumulative net energy bill savings for consumer and businesses
of $85 billion through 2012.
Pollution savings are as dramatic as the financial savings. EPA
estimates that emissions reductions averaging more than 35 million
metric tons of carbon equivalent (MMTCE) per year between now and 2012
were locked in last year based on actions already taken by EPA's
Climate Protection program's voluntary partners. Because many of the
investments in energy-efficient technology promoted by Energy Star
offer a life of ten years or more, these investments will continue to
deliver economic and environmental benefits through 2012 and beyond.
The Energy Star program seeks to influence those capital investment
decisions in a way that helps individual purchasers save money while
simultaneously helping the nation meet its clean air and greenhouse gas
emissions-reduction goals. All of this through voluntary participation
in Energy Star, and the voluntary, market-based choices made by
thousands of partners and millions of American consumers. No
regulations, no government mandates.
MUCH HAS BEEN ACCOMPLISHED, BUT HUGE POTENTIAL REMAINS UNTAPPED
As noted earlier, Mr. Chairman, Energy Star ensures American
consumers have access to information about the energy efficiency of the
products they consume. However, Energy Star does not cover all
products. The Alliance to Save Energy agrees with the President's
National Energy Plan that notes, ``energy efficiency would be further
promoted if the Energy Star program were expanded to a broader range of
products.'' We believe, Mr. Chairman, that the Energy Star program
should have the appropriate resources to do just that.
While the Energy Star program has thus far made significant
reductions in greenhouse gas emissions, opportunities to use energy
efficiency to further eliminate pollution and cut energy bills remain
untapped. Over 85 percent of the major air emissions in the U.S. are
attributable to energy consumption. Furthermore, American families and
businesses spend over $700 billion each year on energy bills according
to the Energy Information Administration. As successful as the Energy
Star programs have been, these programs could accomplish much more.
According to EPA, a typical homeowner could save roughly thirty percent
per year on their energy bills by using Energy Star-labeled products.
Imagine how much Americans could save with the help of a stronger, even
more effective Energy Star program.
Unfortunately, these important programs have received a virtual
level funding request for the past three years, even as the number of
products and manufacturers in the Labeling program has greatly
expanded, and the number of partners in the Buildings, Homes, and Small
Business programs have soared.
Appropriations to the Energy Star program go directly to fund the
underlying research, program implementation, and technical assistance
to partners. These funds are hugely leveraged through EPA's thousands
of voluntary partnerships with product manufacturers, home builders,
state and local government institutions, commercial building owners,
and small businesses. For every federal dollar spent on these programs,
EPA can show an average of $75 or more in energy bills savings and $15
in private sector investment in energy efficient technology, reductions
in greenhouse gas emissions of 1.0 metric ton of carbon equivalent, and
an addition of over $60 to the economy.
RECOMMENDATIONS
Mr. Chairman, I hope that I have helped to demonstrate the
extensive value of EPA's Energy Star program. The Energy Star program
has proven to be an extremely effective way to capitalize our nation's
resource of energy efficiency and successfully make use of energy
efficiency's ability to enhance energy security, reduce pollution, and
provide economic value at the same time.
The Alliance to Save Energy would like to respectfully recommend
the Subcommittee take the following actions to best maximize the
successful efforts of EPA's Energy Star program.
--Last year, the Senate provided a $6.4 million increase in funding
for this program over the fiscal year 2002 levels.
Unfortunately, this was omitted in Conference. However, both
the Senate and Omnibus report marks the first time the Energy
Star program and its funding have been mentioned in a VA-HUD
appropriations report. I strongly encourage the committee to
again make its funding intent for the program clear with report
language.
--In addition, due to the multiple benefits of the Energy Star
program, I respectfully request a significant increase in
funding for the program from the fiscal year 2003 levels of
$49.8 million.
CONCLUSION
Over the past decade, the Energy Star programs have demonstrated
their effectiveness by achieving great savings in the nation's
collective energy bill and in energy-related pollution. They are well-
run, they are cost-effective, they have consistently exceeded their
goals, and they have the support, even explicit endorsement of
businesses across the country.
While there are many demands on the countries financial resources,
I respectfully urge greater support to what works. Energy Star has
proven tremendously cost-effective and it can deliver even greater
benefits to the nation with increased funding resources. Increasing
funding for these programs in fiscal year 2004 is a high-return
investment for the nation's economy and environment.
Thank you for the opportunity to testify.
______
PREPARED STATEMENT OF THE AMERICAN ASSOCIATION OF NURSE ANESTHETISTS
AND ASSOCIATION OF VA NURSE ANESTHETISTS
The American Association of Nurse Anesthetists (AANA) is the
professional association that represents over 28,000 certified
registered nurse anesthetists (CRNAs) across the United States. The
Department of Veterans Affairs (DVA) currently employs over 530 full
time CRNAs with less than 50 representing contract or part time
employees. We appreciate the opportunity to present our testimony to
the subcommittee and to offer recommendations on ways to improve the
retention and recruitment of CRNAs in continuing to provide access to
quality of care for our nation's veterans.
BACKGROUND INFORMATION ABOUT CRNAS
In the administration of anesthesia, CRNAs perform the same
functions as physician anesthetists (anesthesiologists) and work in
every setting in which anesthesia is delivered including hospital
surgical suites and obstetrical delivery rooms, ambulatory surgical
centers, health maintenance organizations, and the offices of dentists,
podiatrists, ophthalmologists, and plastic surgeons. Today CRNAs
administer approximately 65 percent of the anesthetics given to
patients each year in the United States. They are masters prepared and
meet the most stringent continuing education and recertification
standards in the field, helping make anesthesia 50 times safer now than
20 years ago according to the Institute of Medicine's 1999 Report, ``To
Err is Human.'' CRNAs are also the sole anesthesia provider in at least
70 percent of rural hospitals, which translates into anesthesia
services for millions of rural Americans. In addition, CRNAs are the
sole anesthesia providers in twenty percent of the VA facilities.
CRNAs have been a part of every type of surgical team since the
advent of anesthesia in the 1800s. Until the 1920s, anesthesia was
almost exclusively administered by nurses. In addition, nurse
anesthetists have been the principal anesthesia providers in combat
areas in every war the United States has been engaged in since World
War I. Most recently, 364 CRNAs have been deployed to the Middle East
to ensure military medical readiness during the ``Operation Iraqi
Freedom''. Data gathered from the U.S. Armed Forces anesthesia
communities' reveal that CRNAs have often been the sole anesthesia
providers, both at home and while forward deployed. For decades CRNAs
have staffed ships, isolated U.S. Bases, and forward surgical teams
without physician anesthesia support. The U.S. Army Joint Special
Operations Command Medical Team and all Army Forward Surgical Teams are
staffed solely by CRNAs. Military CRNAs have a long proud history of
providing independent support and quality anesthesia care to military
men and women, their families and to people from many nations who have
found themselves in harms way. CRNAs also provide anesthesia services
in the medical facilities of the Department of Defense, the Public
Health Service, the Indian Health Service, the Department of Veterans
Affairs, and countless other public and private entities.
One of the differences between CRNAs and anesthesiologists is that
prior to anesthesia education, anesthesiologists receive medical
education while CRNAs receive a nursing education. However, the
anesthesia part of the education is similar for both providers, and
both professionals are educated to perform the same clinical anesthesia
services. CRNAs and anesthesiologists are both educated to use the same
anesthesia procedures and techniques in the provision of anesthesia and
related services.
CRNAs continue to provide the same standard of quality care in the
administration of anesthesia as their MDA counterparts. That is why
patient outcome data has consistently shown that there is no difference
in outcomes between these two providers. With CRNAs administering
approximately sixty-five percent of the anesthetics given to patients
each year in the United States, the Institute of Medicine reported in
their 1999 Report ``To Err is Human'' that anesthesia is fifty times
safer now than twenty years ago.
The practice of anesthesia is a recognized specialty within both
nursing and the medical professions. Both CRNA's and anesthesiologists
administer anesthesia for all types of surgical procedures; from the
simplest to the most complex, either as single providers or in a ``care
team setting''.
Patients are just as safe receiving their anesthesia care from
CRNAs or physician anesthesiologists, working individually, or from
CRNAs and anesthesiologists working in anesthesia care teams. An April
2003 study titled, ``Surgical Mortality and Type of Anesthesia
Provider,'' analyzed the effect of different types of anesthesia
providers on the death rates of Medicare patients undergoing surgery.
According to the study, surgical death rates were essentially the same
whether anesthesiologists or nurse anesthetists provided the anesthesia
individually or worked together in anesthesia care teams.
INCLUSION OF AAS UNDER THE VA HEALTH SYSTEM: WHERE IS THE OVERSIGHT?
The VHA Handbook 1123 on Anesthesia Service expired on March 31,
2003, with a new draft to be finalized shortly. In 2002, the
Anesthesiology Field Advisory Committee for the Veterans Administration
made revisions and changes to the March 27, 1998 VHA Handbook 1123
through a collective method of meetings and conference calls. Proposals
for changes were brought to the committee as a whole to ensure that any
revisions considered would be discussed and voted on. Again, the
directive for the Anesthesiology Field Advisory Committee is to ensure
the best possible care in anesthesia for our veterans.
It is the understanding of AANA and AVANA that as of March 3, 2003
the latest revisions of the VHA Handbook 1123 were not approved in
collective manner. Further, we were informed that Dr. Michael J.
Bishop, MD, Director VA Headquarters Anesthesia included some revisions
without committee approval. Specifically, Dr. Bishop included a new
provider anesthesiologists assistants (AAs) under section (5) Local
Facility Anesthesia Personnel marked (e) Ancillary Personnel in the VHA
Handbook 1123 ``Anesthesia Services''.
We are concerned that there was no proper oversight to include AAs,
especially since there are no national qualification standards under
Title 38 or pay category under Title 5 for AAs. Before the inclusions
of AAs were made in the VHA Handbook 1123, were any ``quality of care
studies'' on the safety record of AAs performed? How can VA simply
allow AAs to practice in their facilities if AA's have ``no scope of
practice'' within the Federal Government system? It seems apparent to
us that until a study is conducted on AA's practice, and financial
impact, they should not become a new provider in the VA system.
There is little known about the practice of AAs, since they are not
recognized providers of anesthesia in all 50 states. Further, only five
states provide separate licensure for AAs (Alabama, Georgia, New
Mexico, Ohio, and South Carolina). If most of the country does not
recognize the AA practice, why should VA have AAs practice in a
national arena on our men and women who have served in the military?
The VA health system should continue to hold the highest standard of
health care for the men and women who have served in our armed
services. Therefore, we request that there is appropriate congressional
oversight to include new providers under the VA system.
The scope of training for AAs is severely limited. For example, the
Emory program in Georgia does not provide clinical instruction in the
administration of regional anesthesia. The AA curriculum is
characterized by training that allows them to ``assist'' the
anesthesiologist in technical functions. By contrast, nurse
anesthetists are capable of high-level independent function and receive
instruction in the administration of all types of anesthesia including
general and regional anesthesia, conscious sedation, and monitored
anesthesia care. The ability to make independent judgments and provide
multiple anesthetic techniques are critical to meeting an array of
patient and surgical needs. AAs have a very limited scope of practice,
as they are required by law to administer anesthesia only under the
close supervision of an anesthesiologist. Since AAs must work under the
close supervision of an anesthesiologist, they cannot act independently
and quickly in an emergency situation. Immediate and independent action
is required when providing anesthesia, especially for those patients in
the VA health system. In addition, AAs will not resolve the anesthesia
provider shortage within the VA because there is already an increased
demand for anesthesiologists.
NURSE ANESTHESIA PROVIDER SHORTAGE: HOW THIS COMMITTEE CAN HELP
While both types of health professionals can provide the same or
similar services, it costs the Department of Veterans Affairs (DVA)
significantly less to retain CRNAs because they draw a significantly
lower salary than their physician counterparts. It is in the best
interest of the DVA, and this Committee, to implement policies and to
support initiatives that assist in the effort to maintain adequate
numbers of CRNA employees in the DVA. Therefore, this Committee can
greatly assist in the effort to attract and maintain essential numbers
of CRNAs in the DVA by their support of competitive salaries and nurse
anesthesia education programs.
The current employment scenario for CRNAs and the DVA is
complicated by the national nurse anesthesia provider shortage. The
number of nurse anesthetist vacancies increased 250 percent from 1998-
2001, according to CRNA managers' surveys. Health professions staffing
firms report CRNA recruitment rising by up to ten-fold from 1997-2000,
making nurse anesthesia the second most recruited health professional
specialty. In addition, this is compounded by the baby boom generation
approaching retirement. As the number of Medicare-eligible Americans
climbs, it compounds the number of surgical procedures requiring
anesthetics. The solution is to increase funding for our nurse
anesthesia schools, which are currently at capacity.
As of the fall of 2002, the VA system had approximately forty to
fifty CRNA vacancies. This is compounded by the number of CRNAs between
the ages of fifty-two and fifty-four in the VA system that will be
eligible for retirement by 2006, which is greater than fifty percent of
the current work force. The DVA will not be able to keep up with the
recruitment of CRNAs to meet the growing needs of the older veteran
patient population at this rate. This workload will be exacerbated as
the VA health system becomes the back up health system for the to the
military medical system due to the military involvement in the war in
Iraq. Therefore, this Committee can greatly assist in the effort to
increase the number of CRNAs practicing in the VA through the support
of nurse anesthesia education programs.
The DVA is also looking for innovative ways attract nurse
anesthetists to work in their facilities through educational
opportunities. The DVA proposed a nurse anesthesia program beginning
June 2004 with both the military and VA at Ft. Sam Nurse Houston
Anesthesia program in San Antonio, TX. The pilot program would create
ten openings for VA registered nurses (RNs) to apply to and attend a
graduate program in nurse anesthesia at Ft. Sam Houston. After, their
didactics are completed these student would do their clinical training
at accredited VA facilities. Bridging the two programs would cost the
VA program money in the short term, but savings in the long term with
these CRNAs obligated to practice in the VA for two to five years after
their board certification. This is similar to the Department of Defense
anesthesia programs, where officers receiving a nurse anesthesia
education, are obligated to serve in the military for an obligated
four-year pay back. The cost to run the program the first year would be
$450,000 including both set up and administrative costs. After wards,
the cost would be $300,000 annually to continue to educate ten VA RNs
to become nurse anesthetists. Both funding for student CRNAs and a
faculty director are required to making this pilot program a success.
Funding support for a VA nurse anesthesia program in conjunction with
the Army nurse anesthesia program at Ft. Sam Houston, San Antonio, TX
is one viable solution to both educating and employing CRNAs within the
Veterans' health system.
LOCALITY PAY AND RETENTION BONUS
One thing that consistently attracts and maintains good employees
is an attractive salary. Competitive salaries would assist the DVA with
retention of cost-effective CRNAs to provide anesthesia services for
our nation's veterans. But providing competitive salaries for employees
can be an ongoing battle, especially in the face of restricted budgets.
This is where this Committee can help, by providing adequate funding
for personnel through the locality pay adjustments, which are currently
not competitive with the private market.
If salaries cannot stay competitive in the face of a national
nursing shortage, then the DVA will surely continue to face a shortage
of CRNAs. Historically, the cost to correct such a problem has been
steep. The DVA faced a severe shortage of CRNAs once before in the
early 1990s, which was moderately corrected with the implementation of
a locality pay system in 1991. In 1992, Congress expanded the authority
of the local medical directors and allowed them to survey an expanded
area to determine more competitive average salaries for CRNAs, which
boosted pay and morale. Implementation of this expanded authority
helped assist the DVA in making great leaps in retention and
recruitment of CRNAs at that time, but times have changed. Due to the
nationwide shortage of CRNAs over the last few years, salaries have
increased in the private sector to stay competitive in employing CRNAs.
This means that the DVA locality pay system is no longer competitive
with the private sector, with new nurse anesthetist graduates choosing
not to work in the VA health system.
In a recent national survey conducted by Ms. Laura Cohen, the chief
nurse anesthetist at the local New Orleans VA, showed only one of the
hospitals surveyed had a competitive new graduating starting salary.
The response rate for the VA CRNA salary survey was 76 (60 percent) of
the 124 sites that employ CRNAs. Therefore the numbers only apply to
those 76 stations, but it was felt that these stations are
representative of the situation that exists regarding VA CRNA salaries.
The results showed that our national average for both entry level pay
and senior positions fall several thousand dollars below the national
average. In some locations new graduate starting salaries are as much
as $30,000 below the community. This is caused by the low pay
categories for Nurse I/Step I to Nurse 4/Step 4, but also the fact that
many station directors for VA facilities continue to use locality
surveys at their discretion without the input of CRNA staff or
disregard the results completely in the locality surveys.
According to the CRNA Qualifications Standards, a new graduate CRNA
should come into the VHA at Nurse I/Step 1. The results found that only
one station could easily recruit a new graduate at the intended
starting salary and 14 stations had beginning salaries that might be
able to recruit, depending on location. Thus, a minimum of 61 stations
and a maximum of 75 stations could not recruit a new graduate CRNA.
Most stations facing this situation are bringing in a new graduate
CRNAs at a much higher step in Nurse I to be competitive in the local
market. This practice, while attractive to the new graduate, does
nothing for retention of the current CRNA workforce with years of
service and little hope of a salary increase.
This same analysis revealed that 29 stations (39.1 percent) have
Nurse III salaries that reach the federal maximum. The rest of the
stations (61.9 percent) require Nurse IV, which can only be reached by
the Chief Nurse Anesthetist, before the federal maximum salary of
$126.5 thousand can be attained. Raising the Nurse I/Step 1 to the
current market value and increasing the federal maximum salary would
not only increase recruitment but also help greatly to retain the CRNAs
already employed and continue the high standards of anesthesia care
that the VA health system demands for the veteran population.
Finally, creating a structure for recruitment and retention bonuses
to help VA facilities attract and retain CRNAs. The VA needs to
establish a bonus system for CRNAs, similar to the military structure
for incentive special pay, to stay competitive in the marketplace.
We strongly encourage this Committee to continue their role in
facing this nursing shortage head on, by providing adequate funding for
personnel. With the current shortage of nurse anesthetists, we must
insure competitive salaries and education funding to retain and recruit
high quality, cost-effective anesthesia providers. We look forward to
working with this committee to ensure that veterans have continued
access to quality health care at the VA.
______
PREPARED STATEMENT OF THE AMERICAN SOCIETY FOR ENGINEERING EDUCATION
On behalf of the American Society for Engineering Education
Engineering Deans Council (EDC), I would like to express appreciation
for the opportunity to present written testimony on fiscal year 2004
appropriations for the National Science Foundation. I request that my
testimony be made part of the record of the hearings on the fiscal year
2004 NSF budget. The Engineering Deans Council of the American Society
for Engineering Education (ASEE) is the leadership organization of more
than 300 deans of engineering in the United States. ASEE is a non-
profit association established in 1893 and dedicated to the improvement
of engineering and engineering technology education.
I want to begin by thanking the subcommittee Members for their
commitment to a strong budget for the National Science Foundation. The
NSF plays a vital role in supporting and advancing basic research in
science and engineering and in developing the human capital needed to
advance science and technology. Funding levels for the agency greatly
impact engineering educators, as well as the country as a whole.
I want to thank Chairman Bond and Senator Mikulski for their
leadership and persistence in advocating doubling the National Science
Foundation's budget and their strong and continuing support for good
budgets for the agency. I also want to extend the thanks of all the
Engineering Deans Council to all of the other Members of the
subcommittee for their support for doubling the NSF budget. The NSF
Authorization Act of 2002 provides for doubling the NSF over a 5 year
period. This Act represents a major milestone for the NSF and for the
scientific community, because it authorizes increasing the budget of
the NSF from its fiscal year 2002 level of approximately $4.8 billion
to the level of $9.8 billion in fiscal year 2007.
For the fiscal year 2004 NSF budget, the EDC recommends an increase
of $1.09 billion above the fiscal year 2003 level of $5.3 billion, to
provide the agency with a budget of $6.39 billion, the funding
authorized in the 2002 law.
At the outset I want to express the strong support of the
Engineering Deans Council for the new 5-year Workforce for the 21st
Century Initiative under which all the NSF directorates will be
partnering in an integrated research and education effort to address
science and engineering workforce needs.
The NSF occupies a unique position, with the ability to influence
the economic strength of the nation through research and innovation.
Basic research funded through the NSF opens the doors for further
discoveries that can advance medical care; improve communications
equipment, and continue to create better civilian and military security
systems. In the current climate of increasing global economic
competition and a heightened need to protect our citizens and
infrastructure, strong support of the NSF serves a vital national
interest.
Science and technology have become a core component of economic
strength and competitiveness. The NSF brings special expertise to the
task of identifying and promoting the basic science and engineering
research that underlies the United States' world economic leadership. A
growing chorus touts the importance of this kind of federal engagement
with science and technology, including Federal Reserve Chairman Alan
Greenspan, the Council on Competitiveness, and Business Week, among
many others. As Chairman Greenspan said in 2002, ``there is just no
question that if you're going to have technology as the base of your
economy, which we do, research is crucial.''
NSF is the sole federal agency charged with the important task of
funding a broad range of research, spanning a wide variety of
disciplines including basic science, engineering, mathematics, and
computing. It provides necessary financial and intellectual support for
scientists working on groundbreaking research, much of which will lead
to innovations that could impact any number of emerging technologies.
While NSF accounts for less than 4 percent of total federal research
and development spending, the agency supports almost half of the non-
medical basic research at American colleges and universities. In the
field of engineering, NSF provides nearly one third of all federal
support for basic research and has contributed to important
developments such as computer-aided design, fiber optics,
biotechnology, advanced composite materials, and magnetic resonance
imaging (MRI). Renewing support for research and equipment will allow
the nation to take advantage of the opportunities presented by these
new technologies, creating further economic opportunities and improving
overall quality of life.
NSF-sponsored research has led to many of the current developments
in the area of homeland security. Recent NSF projects ranging from the
study of the ecology of infectious diseases to the Scholarship for
Service program, which trains students in information security, help
bolster our nation's ability to prevent and respond to terrorist
attacks. ``The scientific and engineering community is aware that it
can make a critical contribution to protecting the nation from
catastrophic terrorism,'' Lewis M. Branscomb, emeritus professor, John
F. Kennedy School of Government, said in a 2002 National Academies of
Science report.
The benefits of a strong science investment are evident as the men
and women of our armed forces respond to unprecedented threats to U.S.
national security. Because of its superiority, much of it brought about
by investments in S&T, this nation's military is successfully waging
war against terrorism. In this new environment, characterized by
unforeseen and unpredictable threats, maintaining and enhancing
technological superiority will become even more imperative.
Across all fields, NSF support for research produces first-rate
results on modest levels of investment. NSF-supported work is
exceptionally well managed, and attracts additional funding from
outside sources on a regular basis. For example, an additional $86
million in support from industry, other federal agencies, universities,
and ten states leveraged NSF support for the Engineering Research
Centers program. The agency has a diverse, responsive, results-oriented
staff, efficient business processes that take advantage of staff
knowledge and technology resources, and state-of-the-art business tools
and technology. NSF has exceptional business practices, and won the
only ``green light'' given out in the Office of Management and Budget's
Executive Branch Scorecard report in December 2001. OMB Director
Mitchell Daniels said that the NSF deserves to be strengthened, noting,
``NSF is one of the true centers of excellence in the government where
95 percent of the funds that taxpayers provide goes out on a
competitive basis directly to researchers pursuing the frontiers of
science at a very low overhead cost.'' NSF's management successes
include doubling its budget between 1990 and 2000 while simultaneously
decreasing the number of employees at the agency.
Much of NSF's work looks beyond technological innovation by
engaging new generations of students to aid in discoveries while
gaining valuable skills that help prepare them for the cutting-edge
research of the future. Many NSF grants require undergraduate students
to be involved in performing federally funded research. K-12 teachers
are invited to join in summer research programs at MIT's radio Haystack
Observatory, and then are able to develop lesson plans that integrate
modern scientific concepts and real life research processes. The NSF's
Math and Science Partnership Program extends improved science education
into classrooms by uniting local school districts with the faculties of
nearby colleges and universities. NSF also helped to sponsor ``Deans
Summit II: Fostering Campus Collaborations,'' earlier this year. The
meeting catalyzed the formation of many partnerships between
engineering and education deans to improve K-12 science and mathematics
education.
Engaging students in science from their pre-kindergarten education
through college will help endow growing generations of Americans with
the skills and interests necessary both to maintain U.S. leadership in
economic, health, and military fields, as well as to function as
citizens in an increasingly technology-driven society. A vibrant
engineering education enterprise benefits civic, economic and
intellectual activity in the country. Engineering graduates learn to
integrate scientific and engineering principles to develop products and
processes that contribute to economic growth, advances in medical care,
enhanced national security systems, ecologically sound resource
management, and many other beneficial areas. As a result, students who
graduate with engineering degrees bring highly prized skills into a
wide spectrum of sectors in the American workforce. Some conduct
research that results in socially or economically valuable
technological applications. Others produce and manage the technological
innovations said to account for one-third to one-half of growth in the
American economy. Still more bring advanced analytical abilities and
knowledge of high technology to fields as diverse as health care,
financial services, law, and government. Within all of these groups,
the diversity of engineering graduates' backgrounds and viewpoints
contributes to their ability to achieve the advances in innovation,
productivity, and effectiveness that make them valuable contributors to
the American workplace. As former Presidential Science Adviser Neal
Lane observed: ``Chief executive officers of American industry say that
the biggest threat to U.S. competitiveness in the next century is a
shortage of technologically skilled workers. Those future scientists
and engineers must come out of the nation's universities and colleges.
The surest way to leave the United States vulnerable to this threat is
to cut funding for the NSF.''
Engineering graduates in particular bring highly prized skills into
all sectors of the American workforce. The most advanced carry on the
research that pays off in many surprising ways. Other engineering
graduates produce and manage many of the technological innovations said
to account for one-third to one-half of the recent growth in the
American economy. Still others bring advanced analytical abilities and
knowledge of high technology to fields as diverse as health care,
financial services, law, and government. In the Addendum immediately
following my testimony, I have attached additional documentation of the
many ways NSF support is promoting engineering education and research
at U.S. colleges and universities. This wealth of human capital owes
much of its capacity to strategic NSF support for engineering
education.
A succession of predictable, sizable increases to the NSF budget
will permit even greater development of human resources. In addition to
the Math and Science Partnership initiative, NSF programs have become
important vehicles for broadening the participation of under-
represented groups such as minorities and women in the fields of
science, math, and engineering. Through programs like the Experimental
Program to Stimulate Competitive Research (EPSCoR), NSF works to
strengthen the research and development infrastructure of many rural
and low-population states. Consistent growth in the NSF budget will
permit the allocation and coordination of the activities needed to
promote the broadest possible development of science, mathematics, and
technology skills among all Americans.
A $1.09 billion increase for the NSF budget will enhance the value
of the agency's other cross-cutting initiatives. New funding for
multidisciplinary mathematics research will enhance the transfer of
results and applications from mathematics and statistics research to
science and engineering disciplines, expanding the cadre of researchers
trained in both mathematics and science. Dynamic interdisciplinary work
across engineering and science disciplines promises startling advances
in, for example, medicine, manufacturing, and communications. The
assurance of steady resources over extended periods of time for high-
risk, high-reward endeavors--such as research in nanotechnology,
biocomplexity, and high-speed computing--would greatly enhance their
prospects for success. As Harold Varmus, former Director of the
National Institutes of Health and currently President of the Memorial
Sloan-Kettering Cancer Center, has said, ``it is crucial that leaders
of science agencies be able to anticipate several years of steady
growth during periods of expansion. These agencies make multi-year
awards and are responsible for training and research infrastructure, as
well as the operational costs of doing research.'' In an increasingly
interdependent research system, the NSF is uniquely situated to
initiate and promote productive exchanges across the full range of
scientific and engineering disciplines.
Thank you for the opportunity to testify. The Engineering Deans
Council would be pleased to respond to any questions from you and your
staff.
ADDENDUM: EXAMPLES OF NSF PROGRAMS AT ENGINEERING SCHOOLS
Securing Laptops.--As more and more sensitive information is
carried on government laptop computers, theft or loss of these laptops
becomes an issue of national importance. Zero Interaction
Authentication (ZIA) technology developed by the University of Michigan
with NSF support provides a way of automatically encrypting sensitive
information on a computer when it is removed from the proximity of its
authorized user. The technology combines a high level of security with
a low level of user dependence to create a practical and easily
implemented layer of protection.
Modeling Buildings in 3-D.--Researchers at the University of
Virginia and the University of North Carolina are developing technology
to build extremely detailed three-dimensional computer models of the
real world using laser rangefinders and digital cameras. The project,
funded by the National Science Foundation, partners academic
researchers with the FBI to investigate forensic scanning of crime
scenes, the Thomas Jefferson Foundation to examine laser scanning for
historical preservation, and with the New Orleans Museum of Art to
explore virtual tourism using the resulting 3-D computer models.
Improving Structural Engineering.--Lehigh University's ATLSS Center
is one of 15 major experimental installations linked through the
internet to make up the George E. Brown, Jr. Network for Earthquake
Engineering Simulation (NEES) project. This project, funded in part
through the NSF, involves ATLSS scientists in experimentation to
improve the seismic design and performance of the nation's civil and
mechanical infrastructure systems. Researchers from the ATLSS Center
were recently involved in conducting inquiries into the collapse of the
World Trade Center.
Detecting and Fighting Breast Cancer.--Researchers at the
University of Wisconsin-Madison, funded in part by the NSF, are
developing non-invasive techniques for early stage breast cancer
detection, monitoring, and treatment. Breast carcinomas significantly
scatter microwaves, so an array of antennas sequentially transmits a
low-power, ultra-short microwave pulse into the breast and collects the
backscatter signal. The group hopes to adapt space-time signal
processing algorithms for detecting and localizing small malignant
lesions.
Creating Higher Strength Steel.--The use of higher strength steels
in automobiles is an economical way to reduce oil consumption and
increase safety. Unfortunately, the use of higher strength steels is
hindered by changes in other properties of the steel that increase with
strength. Changes in processing and steel composition, being studied by
researchers at Seattle University through a grant from NSF, will result
in large savings of energy and other resources for the manufacturing
sector and safer, more fuel efficient vehicles for consumers.
Touching Virtual Objects.--Researchers at Georgia Tech are working
with a grant from the NSF to develop ``Virtual Clay'', a new type of
computer device that will allow users to see and feel a virtual 3-D
surface. The device will not only be able to display a surface for the
user to feel and touch, but it will also be able to be molded by the
user and the resulting surface can be reproduced within the computer
model. Potential applications range from design, scientific data
visualization, and arts for use by the visually impaired.
Reconfiguring Manufacturing Systems.--The NSF Engineering Research
Center for Reconfigurable Manufacturing systems designs and studies
equipment for the next generation of manufacturing facilities. In 2002,
engineers at the University of Michigan unveiled the worlds' first
full-scale reconfigurable machine too- an important step to designing
more flexible and efficient factories for the future. Factories built
around reconfigurable manufacturing technology will be able to respond
to market demand more quickly, ultimately offering consumers more
product choices at lower prices.
Improving Airport Baggage Security.--A three-year NSF grant awarded
in September 2001 is funding an examination of the nation's aviation
security system. A University of Illinois professor of engineering is
developing operations research models for aviation security operations
and performing a computational analysis of algorithms for designing
aviation security systems. The models will help security personnel
target more quickly and accurately potential risks that might be
lurking in baggage, passenger manifests, service routines, and other
operations related to air traffic.
Water Contaminant Removal.--Scientists at Penn State University are
working to alleviate a common type of water contaminant called
perchlorate which has been detected in the water supplies of
approximately twelve million people, and has proved difficult to remove
through conventional water treatment technologies. Penn State
researchers are investigating biological treatment of perchlorate where
microbes reduce the contaminant to innocuous oxygen and chloride. The
commercial effect of this would be to save large amounts of money,
which has been currently ear-marked for water purification to be used
for both future development and current residential and commercial
usage.
______
PREPARED STATEMENT OF THE HUMANE SOCIETY OF THE UNITED STATES
On behalf of our over 7 million members and constituents, The
Humane Society of the United States (HSUS) appreciates the opportunity
to submit testimony regarding fiscal year 2004 appropriations for the
Environmental Protection Agency (EPA). We wish to thank the
Subcommittee for directing the EPA to spend $4,000,000 for the
research, development, and validation of non-animal, alternative
chemical screening and prioritization methods. Prioritizing funding for
non-animal test methods is a critical step, encouraging the EPA to
promote and support these more humane, often faster, less expensive,
and more scientifically sophisticated procedures. We wish to commend
the Subcommittee for improving federal regulatory decision-making
processes on chemical safety and for helping to reduce needless animal
suffering. Our testimony for fiscal year 2004 focuses on the EPA's
Office of Research and Development (ORD) and the agency's Endocrine
Disruptor Screening Program (EDSP).
The EDSP is the largest of several chemical testing programs
administered by the EPA. These programs will collectively subject
millions of animals to suffering and death in painful toxicity tests.
Indeed, the EDSP itself is perhaps the largest government-sponsored
animal testing program in history. Yet without the Subcommittee's
intervention, the EPA's ORD budget has no identifiable program to
develop alternative tests that can replace, reduce, or refine existing
animal-based tests. We are still not seeing sufficient commitment from
EPA to provide the initial investments needed to produce alternatives
(or batteries of alternatives) to address issues such as the Endocrine
Disruptors. Eli Lilly and Company eliminated its cat test for glucagon,
replacing it with an alternative test, and calculated that it was
saving $1 million a year as a result of the new test. However, it cost
Eli Lilly $2 million to develop and validate the alternative. There
will be a need for similar up-front investment by the EPA.
The EPA, moreover, is not taking full advantage of an existing
interagency committee with expertise in assessing new testing methods
to evaluate their acceptability for regulatory use. The Interagency
Coordinating Committee on the Validation of Alternative Methods
(ICCVAM) is the federal government's focal point for assessing the
validation and regulatory acceptability of new test methods. The EPA is
a participating member of ICCVAM and was very involved in developing
and approving the ICCVAM structure. Yet the EPA is bypassing the
ICCVAM's review mechanism for many of the new tests in its EDSP,
instead relying on in-house assessments. This move has worried many
animal protection advocates as well as other stakeholders.
The HSUS respectfully urges this Subcommittee to request that the
ORD establish a substantial program to research and develop alternative
methods (as it already committed to do for the High Production Volume
chemical testing program but has not yet pursued), and that the EPA
take full advantage of ICCVAM's expertise in evaluating new testing
methods of multi-agency interest.
RESEARCH AND DEVELOPMENT OF ALTERNATIVE TESTING METHODS AT EPA'S ORD
The ORD budget in recent years has been approximately $500 million.
Within these appropriations, it has been nearly impossible to identify
funding by the ORD for non-animal alternative testing methods to meet
EPA's specific needs in new testing programs. We believe that
innovative non-animal alternative testing technologies would benefit
from research and development funding. Therefore, we respectfully
request that at least $10 million either from the existing budget or
over and above the President's budget request be appropriated for
research, development and validation of non-animal, alternative testing
methods. Given the potential long-term benefits of such investment in
alternatives development, it is surprising to us that the EPA is not
already actively pursuing this approach. Activities funded by these
allotments should be designed in consultation with the Office of
Pollution Prevention and Toxic Substances.
It would be appropriate for this funding to be targeted at testing
methods with direct application to recent and new EPA testing programs,
which include the EDSP, High Production Volume (HPV) chemical testing
program, and the Voluntary Children's Chemical Evaluation Program
(VCCEP). For example, there is a specific rat neurological development
test that is widely regarded as inadequate but is still being proposed
as one of the battery of tests under the VCCEP.
The HSUS also asks that the Subcommittee require the EPA to submit
a report to the Subcommittee by March 30, 2004 regarding expenditures
and plans for additional expenditures for fiscal year 2004 funds under
the EDSP.
The request for $10 million represents approximately 2 percent of
ORD's total budget, a modest but nonetheless significant commitment by
EPA to alternative test methods. The HSUS would like to emphasize that,
in making this request, we believe this course of action would also be
in the best interests of human and environmental safety.
THE ENDOCRINE DISRUPTOR SCREENING PROGRAM (EDSP)
Under the 1996 Food Quality Protection Act (FQPA) and the Safe
Drinking Water Act Amendments, Congress mandated that EPA determine
whether certain substances may have an effect in humans that is similar
to an effect produced by a naturally occurring estrogen, or such other
endocrine effects as EPA may designate. The congressional mandate came
as a response to public concern that exposures to synthetic chemicals
in the everyday environment may be adversely affecting the endocrine
systems of wildlife and humans, thereby causing reproductive and
developmental anomalies.
In response to Congress' mandate, the EPA formed the Endocrine
Disruptor Screening and Testing Advisory Committee at the close of
1996. This entity devised the testing framework for the EDSP.
Currently, the proposed EDSP testing scheme consists of a battery of 16
tests designed to assess the toxicity of up to 80,000 chemicals. These
tests are largely animal-based. Some scientific estimates have
projected that between 600,000 and 1.2 million animals will be killed
for every 1,000 chemicals tested.
Animal protection organizations and members of the public have
serious concerns about the process by which the proposed EDSP tests
will be evaluated. The FQPA stated that all screens and tests used in
the EDSP should be properly validated, to ensure their relevance and
reliability for assessing endocrine disruption. The proposed EDSP
testing methods are all either new or revised for new endpoints, and
therefore each should be evaluated for the EDSP as a matter of sound
science. The natural entity to conduct this evaluation is the ICCVAM.
Since its creation in 1994, the ICCVAM has benefited EPA and many other
federal agencies, as well as research entities, by successfully
evaluating the validity of new and revised testing methods
(alternatives included) that have cross-agency relevance.
In December of 2000, Congress upgraded ICCVAM from an ad hoc
committee to a standing body, thereby solidifying its crucial role. It
is clear that ICCVAM can provide a standardized assessment of the
validity and regulatory acceptability of all EDSP tests and screens.
This would be particularly appropriate given the level of interest in
these methods by other federal agencies such as the Food and Drug
Administration and other national and international organizations,
including the Organization for Economic Cooperation and Development.
However, EPA has developed a bifurcated validation plan for the
EDSP that calls upon its own Science Advisory Board (SAB)/Science
Advisory Panel (SAP) to review all the animal-based tests and screens,
while asking the ICCVAM to review only the non-animal testing methods.
This approach has many observers worried that the animal-based methods
will be evaluated using lower standards than the non-animal methods. In
addition to qualms voiced by animal protection advocates, the Advisory
Committee on Alternative Toxicological Methods (ACATM) for the National
Toxicology Program passed two unanimous resolutions questioning the
EPA's plan and supporting the mission of ICCVAM. The Committee's
primary concern was that both in vitro and in vivo methods be subjected
to the same rigorous peer review and validation process to ensure the
highest likelihood of acceptance by the regulatory agencies, the
scientific community and the public.
The HSUS strongly urges the Subcommittee to call on the EPA to use
ICCVAM's expertise to assess the validity and regulatory acceptability
of all EDSP tests and screens, with appropriate fiscal support from the
EPA. Furthermore, ICCVAM should collaborate with EPA's SAB/SAP to avoid
any unnecessary delay in the program. Among other things, ICCVAM's
review of the EDSP testing methods can serve to ensure that proper
consideration is granted for the replacement, reduction, and refinement
of the use of animals in these proposed tests and screens.
CONCLUSION
The HSUS respectfully requests that the VA-HUD Appropriations
Subcommittee provide funding to the EPA with the direction that the ORD
expand its research and development activities to include alternative
methods. We also urge the Subcommittee to ensure that any new or
revised testing methods with multi-agency or international interest be
evaluated through the Congressionally-established ICCVAM for sound
science and consistency with the replacement, reduction, or refinement
of animal use.
Finally, The HSUS requests language in the report accompanying the
fiscal year 2004 VA-HUD and Independent Agencies Appropriations bill
stating that no funds for the EPA may be used for the purpose of
assessing data from an animal-based testing method when a non-animal
test for the desired endpoint has been validated/accepted by the OECD
or its member nations. This request will ensure that the EPA not only
honors its stated concern for animal welfare, but also honors its
international commitments to the latest scientific methods.
______
PREPARED STATEMENT OF THE AMERICAN PSYCHOLOGICAL SOCIETY
Mr. Chair, Members of the Committee: Thank you for this opportunity
to present the views of the American Psychological Society (APS) on the
fiscal year 2004 appropriations of the National Science Foundation
(NSF). I am Alan Kraut, Executive Director of APS. We are a 15,000-
member organization of scientists and academics, most of whom are
located in colleges and universities across the country. The NSF
supports many members of the American Psychological Society, and much
basic research in our field could not exist without NSF funding.
--As a member of the Coalition for National Science Funding (CNSF),
APS strongly supports CNSF's recommendation of $6.39 billion
for the National Science Foundation in fiscal year 2004.
--Within the NSF Budget, we ask the Committee to fully fund the
President's request for the Social, Behavioral and Economic
Sciences (SBE) Directorate.
THE NATION'S PREMIERE BASIC RESEARCH ENTERPRISE
CNSF's recommendation for fiscal year 2004 is based on the level of
funding authorized for NSF in HR 4664, passed in the 107th Congress and
signed by the President. This level of funding is the first step toward
a much-needed doubling the Nation's premiere basic research enterprise.
NSF is the primary funding source of non-medical basic research
conducted at colleges and universities in the United States. Last fall,
Congress passed an historical authorization bill for NSF, supporting a
schedule of increases in NSF's budget from the fiscal year 2002 level
of $4.79 billion to $9.84 billion in fiscal year 2007. The basic
science community now turns to you, the appropriators, and asks you to
make this authorization a reality.
Both Congress and the Administration have expressed a high degree
of confidence in NSF's mission and its efficient management of
resources. The House Committee on Science made a clear case clear for
the importance of basic science to our progress as a nation. As
Chairman Boehlert noted, ``NSF-supported research [is] integral to
progress in priority areas such as health care and national security,
among others,'' could not be more accurate. He also noted, ``Science
and technology have the potential to cure numerous domestic and global
social ills--disease, poverty, hunger, cultural isolation and
environmental degradation, just to name a few.'' But perhaps most
relevant is this final statement by Mr. Boehlert: ``Advances in science
and technology do not come cheap, or without focused effort.'' The
increase that you and your colleagues in the Senate provided for NSF in
fiscal year 2003, and the increase that we are recommending in fiscal
year 2004, are important steps in offsetting the comparative
underfunding that has characterized NSF's budget in the past several
years. The scientific community is grateful for your support and it is
our hope that you will continue to endorse the much-needed expansion of
NSF's budget.
THE SOCIAL, BEHAVIORAL AND ECONOMIC SCIENCES (SBE) DIRECTORATE
Within the NSF budget, we ask the Committee to continue its history
of support for behavioral and social science research at NSF. This
Committee was instrumental in encouraging NSF to establish its Social,
Behavioral, and Economic Sciences (SBE) Directorate a decade ago, and
over the years has encouraged many of the initiatives coming out of
that directorate. The fiscal year 2004 budget request to Congress
contains a 10.8 percent increase for SBE, which would bring it to
$211.7 million. (And of course to the extent that you appropriate funds
for NSF above the requested amount, we ask that the SBE directorate
share proportionately in such increases.)
In fiscal year 2003 the President proposed a 6.3 percent increase
for SBE. Unfortunately, when the dust settled, SBE received an increase
of only 3.9 percent over fiscal year 2002. We are concerned about this
shortfall, given the enormous potential of behavioral science to
address many critical issues facing the Nation. To offset the previous
year's underfunding, the SBE directorate received the largest proposed
increase of any directorate in 2004. We ask this committee to fully
fund the President' budget request for SBE in fiscal year 2004.
Before addressing specific activities of the SBE directorate, I
first want to provide a brief overview of basic psychological research,
to give you an idea of the scope and breadth of the field that I
represent.
An Overview of Basic Psychological Research: Programs and
initiatives that involve psychological science are our best chance to
solve the enigma that has perplexed us for so long: How does the human
mind work and develop? APS members include thousands of scientists who
conduct basic research in areas such as learning, cognition, and
memory, and the linked mechanisms of how we process information through
visual and auditory perception. Others study decision-making and
judgment; mathematical reasoning; language development; the
developmental origins of behavior; and the impact of individual,
environmental and social factors in behavior. The basic psychological
research conducted by APS members has implications for a wide range of
applications, including designing technology that incorporates the
perceptual and cognitive functioning of humans; teaching math to
children; improving learning through the use of technology; developing
more effective hearing aids and speech recognition machines; increasing
workforce productivity; and ameliorating social problems such as
prejudice or violence. While this is a diverse range of topics, all of
these areas of research are bound together by a simple notion: that
understanding the human mind, brain, and behavior is crucial to
maximizing human potential. That places these pursuits squarely at the
forefront of several of the most pressing issues facing the Nation,
this Congress, and the Administration.
Progress and investments in psychological science will not simply
lead us to a better understanding of how humans think, decide,
evaluate, and adapt. It will lead us to revolutionary advances in our
powers to predict, detect, and prevent. In this time of uncertainty,
where we can come to rely so heavily on technology to keep us safe and
confident, we must turn to cognition in order to maximize this
technology. An understanding of how people process information will
enable us to design technology and computers that fit our needs and
make us comfortable when using them. The potential for advances would
be limitless.
HIGHLIGHTS OF SBE INITIATIVES
Turning now to the SBE Directorate, I'd like to highlight some of
its programs. These initiatives exemplify SBE's essential leadership on
the cutting-edge frontiers of research, and they illustrate the
important work that will only flourish if adequately funded.
Cognitive Neuroscience Initiative.--Theoretical work in behavioral
science has greatly advanced our understanding of the basic mechanisms
underlying memory, emotion, learning, and other psychological and
cognitive processes. Recognizing the potential contributions of
neuroscience to these and related areas, the directorate has added
funds to these programs for the express purpose of bringing more
neuroscience perspectives to bear on these topics, and to map these
psychological mechanisms onto the physical dimensions of the brain.
Cognitive neuroscience, within the last decade, has become an active
and influential discipline, relying on the interaction of a number of
sciences, including cognition, neurology, neuroimaging, physiology and
others. The cross-disciplinary aspects of this field have spurred a
rapid growth in significant scientific advances. Research topics
examined under the program so far have included sensory processes,
higher cognitive functions, language, learning, memory, and the list
goes on. Cognitive neuroscientists are able to further clarify their
findings by examining developmental and transformational aspects of
these phenomena across the lifespan.
NSF, with the right support, will have the ability to link advances
in human thought and behavior to the natural and social sciences. Now,
with brain imaging and other non-invasive techniques, we are poised to
confirm and extend these theories through studies of the living brain.
The Cognitive Neuroscience program solicits innovative proposals aimed
at advancing an understanding of how the human brain supports thought,
perception, affect, action, social processes, and other aspects of
cognition and behavior. Scientists from a range of areas will be able
to test theories about normal brain functioning; assess the behavioral
consequences of brain damage; and reach new levels of understanding of
how the brain develops and matures, in terms of both structure and
function. The program is particularly interested in supporting the
development of new techniques and technologies for recording,
analyzing, and modeling complex brain activity.
On a related note: A stable, long-term commitment to the study and
development of new technology ensures continued advances in all fields,
including our own discipline of psychological science, which is part of
the broader behavioral and social science research enterprise. Emerging
fields, such as behavioral genetics and cognitive neuroscience--which
employ the latest in imaging and computing technology to unlock the
mysteries of the mind and the origins of behavior--are examples of
where gains in technology are necessary if we are to see a return on
our investment in science. In addition, addressing human factors in the
design of technology is essential; advances in technology will be
severely undermined unless we incorporate what we know about
perception, learning and memory, and other behavior-based processes
that people draw on when using technology. Advances in science and
technology will not only make the U.S. a world leader in many arenas,
but will also contribute to better homeland security and a stronger
economy.
Developmental and Learning Sciences.--This initiative supports
studies that increase our understanding of cognitive, social, and
biological processes related to children and adolescents' learning in a
variety of settings. Additional priorities are the support of research
on learning and development that incorporates multidisciplinary, multi-
method, microgenetic, and longitudinal approaches. This program will
lead to the development of new methods and theories, and assess peer
relations, family interactions, social identities, and motivation. It
examines the impact of family, school, and community resources, as well
as assesses adolescents' preparation for entry into the workforce; and
investigates the role of demographic and cultural characteristics in
children's learning and development. The results of this initiative
will add to our basic knowledge of children's learning and development
and, ultimately, will lead to better educated children and adolescents
who grow up to take productive roles as workers and as citizens.
NSF's Children's Research Initiative.--Recognizing that a
combination of perspectives--cognitive, psychological, social, and
neural--is needed to fully understand how children develop and how they
acquire and use knowledge and skills, the SBE directorate supports new
interdisciplinary research centers that will focus primarily on
integrating traditionally disparate research disciplines concerned with
child development. Known as the Children's Research Initiative (CRI),
this program is bringing together such areas as cognitive development,
cognitive science, developmental psychology, linguistics, neuroscience,
anthropology, social psychology, sociology, family studies, cross-
cultural research, and environmental psychology, to name only some of
the relevant disciplines.
Psychology researcher Stephen J. Ceci, of Cornell University, who
is also an APS Fellow, leads one of the CRI's four research centers.
The Cornell Institute for Research on Children will conduct rigorous
multi-disciplinary research on issues of significance to children and
their families. Specifically, the center will commission national teams
of the nation's most distinguished developmental scientists to study
policy relevant questions, and to create a consensus position for
dissemination to the public. Ultimately, this project will place
science-based information in the hands of Congress and other
policymakers. On a different front, the North Carolina Child
Development Research Collaborative is preparing to launch an
interdisciplinary longitudinal study of early childhood, aimed at
examining linguistic, emotional and intellectual changes from birth to
school entry. The focus is on the individual in the context of social
relationships. These two centers are just a sampling of what the CRI
can accomplish. Over 80 proposals for new studies were received last
fall, and this spring will see another round of competition for
collaborative projects and more centers.
The initiatives I just described are in the Division of Behavioral
and Cognitive Science. Basic behavioral science supported by this
division traditionally has included research in cognition, perception,
language, development, emotion/affect, and social psychology. SBE's
other main component, the Division of Social and Economic Sciences,
also supports a substantial amount of basic psychological science.
Examples of research topics being addressed in that division include:
human dimensions of global change, group and individual decision
making, risk management, and human factors. Research in these areas has
the potential to increase employee and organizational productivity,
improve decision making in critical military or civilian emergency
situations, and inform the public policymaking processes across a range
of areas.
CROSS-CUTTING BEHAVIORAL INITIATIVES
The Science of Learning.--How people think, learn and remember is a
core area of interest at NSF. Known as the science of learning, this
field draws from a variety of research topics across psychology, such
as brain and behavior, learning, memory, perception, social psychology,
and development. The basic challenge for both the science and education
communities is this: How can we apply and extend our knowledge of how
people think, learn and remember to improve education?
Last year, as this program was in the planning stages, we asked for
your support. In the fiscal year 2003 appropriations report, you
stated, ``the Committee recognizes that investment in basic,
multidisciplinary research on learning is crucial to both successful
educational reform and effective workforce development. In this regard,
the Committee's recommendation includes support for the NSF Science of
Learning Centers.'' We thank you for your support last year, and we ask
that you continue to support this program in fiscal year 2004.
NSF's Science of Learning program has two broad goals: improving
our understanding of the learning process, and transferring that
understanding into application. We have the knowledge base and a
critical mass of top-flight scientists to help solve the educational
and learning issues that have been identified by the government as high
priorities. But getting that knowledge into the classroom is going to
require a multi-disciplinary, multi-agency effort. This will be
facilitated via investigations in human-computer interactions,
cognitive psychology, cognitive neuroscience, and other activity
related to child learning and cognitive development. Through the
establishment of three or four multi-disciplinary Science of Learning
Centers, NSF will for the first time attempt to focus the full range of
science and research onto a scientific workforce objective. These
centers will also provide a research base for the President's Math and
Science Partnership.
Human and Social Dynamics.--NSF's newest priority area, Human and
Social Dynamics, will support multi-disciplinary approaches to better
understand the causes and impact of social change, as well as to
increase understanding of behavior and the human mind. This new
priority area will expand knowledge of the cognitive and social
structures that create and define change. Decision making under
uncertainty and enhancing human performance are just two examples of
topical areas that will be addressed in the early stages of this
effort.
One of the biggest challenges facing behavioral scientists is the
better understanding of everyday human performance and action, and how
such performance is influenced by rapid change. NSF is currently
seeking research proposals that will examine this challenge. Research
on cognition, development, behavior, emotion and language is converging
with advances in biology, engineering, and technology. This convergence
can be used to illustrate how we can improve performance in the face of
rapid change. The early stages of research in this new area will
enhance our fundamental understanding of basic research on human
performance in the behavioral sciences, and will strengthen the links
between this research and other relevant scientific communities,
especially biology, engineering, and information technology. This
priority area seeks to refine our knowledge about decision-making,
risk, and uncertainty, and then take this new knowledge and translate
it into improved decision-making techniques. Now more than ever, we
live in a world where science such as this cannot afford to fail.
In closing, I want to note that building and sustaining the
capacity for innovation and discovery in the behavioral and social
sciences is a core goal of the National Science Foundation. We ask that
you encourage NSF's efforts in these areas, not just those activities
I've described here, but the full range of activities supported by the
SBE directorate and by NSF at large. Your support in fiscal year 2004
will help NSF lay the groundwork for this long-overdue emphasis on
these sciences.
Thank you again for the opportunity to appear before you to present
our recommendations. I would be pleased to answer questions or provide
additional information.