[Congressional Record Volume 140, Number 35 (Thursday, March 24, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 24, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          SENATE COMMERCE COMMITTEE BUDGET VIEWS AND ESTIMATES

  Mr. HOLLINGS. Mr. President, during the consideration of the fiscal 
year 1995 budget resolution, I submitted to the Senate Budget Committee 
a letter containing the Senate Commerce Committee Views and Estimates 
for fiscal year 1995 and beyond. I ask unanimous consent that these 
views and estimates be printed in full in the Record following my 
remarks.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:


                                                  U.S. Senate,

                                   Washington, DC, March 22, 1994.
     Hon. James Sasser,
     Chairman,
     Hon. Pete V. Domenici,
     Ranking Republican,
     Washington, DC.
       Dear Jim and Pete: This letter comprises the views and 
     estimates report of the Committee on Commerce, Science and 
     Transportation on the President's Fiscal Year (FY) 1995 
     budget proposal and economic package.
       The Committee will address several areas of concern during 
     the 103rd Congress. The budget for FY 1995 and beyond for 
     agencies handling these issues will be scrutinized carefully 
     to ensure adequate resources for implementing Committee 
     initiatives and policies. The following is a discussion of 
     major issues of interest, which are reviewed in the context 
     of what the Committee understands to be the President's 
     budget for FY 1995 and beyond.


                                aviation

       The Committee believes that operations and programs of the 
     Federal Aviation Administration (FAA) must be funded at 
     levels to ensure the continued safe operation of the national 
     airspace. All of the FAA programs, except for a portion of 
     the Operating account, are funded by fees collected from the 
     travelling public, and deposited in the Airport and Airway 
     Trust Fund.
       The FY 1995 President's budget is intended to promote the 
     following objectives: safety; competitiveness through 
     increased investment in aviation infrastructure; and the 
     reinventing of government through streamlining and reducing 
     overhead. In this regard, the Committee intends to exercise 
     oversight to assure that FAA safety functions are not 
     affected adversely by attempted efficiencies.
       A stated aviation policy goal in the President's budget is 
     the corporatization of the air traffic control system. The 
     Committee notes that there is significant concern that a 
     separation of air traffic control responsibilities from the 
     rest of the FAA will not improve efficiency or address 
     existing problems with the management of the FAA, and may 
     even adversely affect safety.
       With respect to the Facilities and Equipment, or capital, 
     account, the President's request of $2.269 billion is less 
     than the authorized level of $2.9 billion. Under this 
     account, the Committee is concerned about the reportedly 
     large cost overruns in the Advanced Automation System (AAS) 
     Program, and awaits with interest the outcome of the FAA 
     Administrator's review of this situation. The Committee will 
     scrutinize future plans and estimates for the AAS to ensure 
     that the program can be carried out within agreed upon 
     funding levels. Other areas of system modernization and 
     improvement, such as work on the Global Positioning System, 
     must be continued, and funding must be adequate for these 
     areas.
       The Airport Improvement Program level under the President's 
     budget is $1.69 billion. This amount is considerably lower 
     than the $2.2 billion that the Committee believes is 
     necessary to continue funding for necessary capacity and 
     safety projects, as well as to assure continuation of funding 
     for existing Letters of Intent, which are long-term planning 
     documents for airports.
       The President's request for the Operations account is $4.58 
     billion, which is virtually the same level as last year's 
     appropriated amount. Salaries of controllers, safety 
     inspectors, security personnel, and all support functions are 
     paid from this amount, and thus the Committee believes that 
     this level is the minimum needed to assure that the vital 
     safety functions and activities of the FAA are covered.
       The President's request with respect to Research and 
     Development is almost $30 million below the existing 
     authorization of $297 million. Research is a critical aspect 
     of the mission of the FAA. The United States must continue 
     its efforts to lead the world in development and testing of 
     new technology in air transportation, human factors, airport 
     capacity and aviation medicine.
       With respect to aviation expenditures, the Committee is 
     concerned that the surplus in the Airport and Airway Trust 
     Fund is projected at $4.6 billion at the end of FY 1994, and 
     $4.5 billion at the end of FY 1995. The Committee continues 
     to believe that Trust Fund monies should be spent for their 
     intended purposes, and surpluses should not be allowed to 
     build up while capital needs go unmet.


                             communications

       The Committee will continue its oversight of the various 
     sectors of the communications industry, the Federal 
     Communications Commission (FCC), the National 
     Telecommunications and Information Administration (NTIA), and 
     the Corporation for Public Broadcasting (CPB) and will be 
     considering reauthorizations of these programs. The President 
     has submitted budget proposals for these programs for FY 
     1995.
       The President has proposed funding for the Federal 
     Communications Commission (FCC) in FY 1995 in the amount of 
     $72.4 million. This is a decrease of $27.5 million over the 
     amount appropriated in FY 1994. The decrease is due in large 
     part to the increase in FCC fees authorized last year in the 
     Budget Reconciliation Act of 1993. The Office of Management 
     and Budget projects that the FCC will raise approximately $95 
     million in new fees for FY 1995, bringing the FCC's total 
     budget authority to $167.4 million in FY 1995. The Committee 
     will be considering the reauthorization of the FCC for FY 
     1995 later this year.
       The President's FY 1995 budget proposes to increase the 
     overall funding for NTIA from $71 million to $134 million. 
     This amount would include an increase in funding for the 
     National Information Infrastructure (NII) grant program from 
     $26 million to $100 million. The committee understands that 
     this program will fund demonstration projects to enhance the 
     communications capabilities of schools, hospitals, public 
     safety, libraries, and other similar groups. The Committee 
     will consider authorizing the NII grant program at the levels 
     requested by the President in FY 1995 at $100 million and in 
     FY 1996 at $150 million--levels which are included in S. 
     1883, the NTIA authorization bill recently introduced.
       The President has proposed $11 million for the Public 
     Telecommunications Facilities Program (PTFP) in FY 1995. 
     Despite recommendations by the Bush and Reagan 
     Administrations to terminate the funding for PTFP, Congress 
     has continued to fund the program. PTFP was appropriated $24 
     million in FY 1994. The Committee is considering 
     reauthorization of the PTFP program as part of the NTIA 
     authorization bill, S. 1883, in both FY 1995 and 1996 in the 
     amount of $42 million (the same amount authorized in FY 1992, 
     1993, and 1994).
       The President's FY 1995 budget includes $1 million in 
     funding for the National Endowment of Children's Educational 
     Television (NECET). It does not include funding for the Pan-
     Pacific Educational and Cultural Experiments by Satellite 
     (PEACESAT) program. Both the NECET and PEACESAT are 
     administered by NTIA, and S. 1883 includes authorizations for 
     NECET at $6 million for each of FY 1995 and 1996 and PEACESAT 
     at $1.5 million for FY 1995.
       In addition, the Committee anticipates considering 
     reauthorization of the CPB for FY 1997, and 1998 and 1999. 
     The President has proposed $293 million for CPB in FY 1995, 
     which is the same amount already authorized.


                       oceans and merchant marine

                              Coast Guard

       During the past several years, the Coast Guard has 
     demonstrated the capability to undertake a number of diverse 
     and important missions across the United States. Adequate 
     funding will be necessary if it is to continue to fulfill 
     thee national responsibilities. The Committee will be 
     considering reauthorization of the Coast Guard for FY 1995 
     this year and estimates that the Coast Guard will require 
     $3,875 million in spending authority for FY 1995 to maintain 
     current services and implement Administration proposals.
       With respect to the Coast Guard's Operating Expenses (OE) 
     account, $2,592 million in spending authority was 
     appropriated in FY 1994. This OE budget emphasized funding 
     for the Coast Guard's marine safety and drug and migrant 
     interdiction efforts, while maintaining the Coast Guard's 
     strong commitment to marine environmental protection, 
     national security, fishery law enforcement, and search and 
     rescue. Such activities must be continued in FY 1995, 
     requiring increased spending authority of $59 million after 
     adjustment for inflation and Government-wide administrative 
     and personnel reductions. Of the total funding level for 
     operating expenses, $33 million can be transferred from the 
     Boat Safety account, and $25 million can be transferred from 
     the Oil Spill Liability Trust Fund to the OE account. Thus, 
     the Committee recommends new budget authority of $2,651 
     million for the Coast Guard's OE account in FY 1995.

       The Coast Guard's Acquisition, Construction,and 
     Improvements (AC&I) account will require a significant 
     increase in funding from the FY 1994 level. The CBO baseline 
     based on current spending levels is $316 million for FY 1995. 
     The baseline does not include $33 million to be transferred 
     from the Oil Spill Liability Trust Fund. In addition, an 
     increase of $60 million will be needed to fund three 
     essential new replacement projects for motor lifeboats, buoy 
     boats, and coastal patrol boats to maintain the Coast Guard's 
     operational capabilities. In addition, $32 million will be 
     required to continue implementation of a new vessel traffic 
     system for busy ports and harbors to reduce maritime 
     accidents and the threat of hazardous materials and oil 
     spills. Increases also will be necessary to continue 
     replacement of seagoing and coastal buoy tenders, many of 
     which are over fifty years old. The Committee supports 
     these acquisitions and recommends new budget authority of 
     $439 million for Coast Guard's AC&I account for capital 
     improvement of the Coast Guard's vessel, aircraft, shore 
     facilities, information management resources, and aids-to-
     navigation.
       In other Coast Guard accounts, the Committee supports 
     adequate funding to continue existing programs at current 
     levels, including: $65 million for reserve training; $25 
     million for environmental compliance and restoration; $40 
     million for boat safety; $13 million for bridges; and $563 
     million for retired pay. Such funding levels are consistent 
     with the President's budget request, with the exception of 
     the boat safety and bridge accounts, and, in large part, with 
     the CBO baselines.

                         Oceans and Atmosphere

       The Committee remains committed to the advancement of the 
     atmospheric, oceanic, and fisheries programs of the National 
     Oceanic and Atmospheric Administration's (NOAA). For FY 1995, 
     the Administration budget request has focused on three 
     priorities for strengthening agency program and 
     infrastructure: (1) advancing short-term warnings and 
     forecasts; (2) providing stewardship of natural and living 
     marine resources; and (3) advancing interagency programs such 
     as the U.S. Global Change Research Program and high 
     performance computing and communications.
       The Committee will be considering the reauthorization of 
     various NOAA programs and in general supports continuation of 
     NOAA's current activities, which CBO estimates will require 
     spending authority of $1,929 million to cover base 
     operations, construction, and ongoing procurements at FY 1994 
     service levels. In addition, an increase of $80 million may 
     be required to address activities which the Committee views 
     as priorities, including modernization of NOAA's 
     oceanographic fleet, environmental facility compliance, and 
     environmental data management. In total, the Committee 
     recommends new budget authority of $2,009 million for NOAA in 
     FY 1994.

                        Maritime Administration

       This year the Committee will continue its examination of 
     the state of the maritime industry and in this regard will 
     continue its oversight of the activities of the Maritime 
     Administration (MarAd) within the Department of 
     Transportation (DOT). MarAd's activities are essential to the 
     maintenance of a strong U.S. Merchant Marine and the national 
     defense of the United States.
       The President's FY 1995 budget proposal for MarAd requests 
     appropriations of $381 million for FY 1995, a 10-percent 
     decrease from FY 1994. The total appropriation for MarAd for 
     FY 1994 was $424 million.
       The Administration's FY 1995 budget for MarAd includes: $77 
     million for operations and training, an increase of $0.6 
     million over the FY 1994 appropriation for this account 
     (including funding for the merchant marine academies); $250 
     million for the Ready Reserve Force, $48 million below its FY 
     1994 appropriation; $50 million for title XI loan guarantees; 
     and $214.4 million for operating differential subsidy (ODS) 
     obligations. (These amounts do not included the cost of the 
     ocean freight differential, for which there is a permanent, 
     indefinite appropriation to cover additional shipping costs 
     for government-impelled preference cargoes. The expected 
     amount of this differential in FY 1995 is $60.6 million.)
       The Committee takes note of the President's FY 1995 budget 
     proposal of $50 million in funding for title XI loan 
     guarantees. The Credit Reform Act of 1990 requires that the 
     cost of any new loan guarantees under this program is to be 
     appropriated. Appropriations of $50 million would support 
     $500 million in loan guarantees.
       In addition, the President's FY 1995 budget proposal 
     requests $1 billion in budget authority for direct spending 
     for maritime reform legislation, with offsets for that 
     spending to be obtained through increasing existing tonnage 
     duties. This proposed program, known as the Maritime Security 
     Fleet Program, would provide for annual outlays of 
     approximately $100 million over 10 years. Last session, the 
     House of Representatives approved H.R. 2151, the Maritime 
     Security and Competitiveness Act of 1993. H.R. 2151 
     authorizes $1.2 billion for a new maritime program, which is 
     $200 million more than the President's request and would 
     provide for annual outlays of $120 million over 10 years. The 
     Administration's legislative proposal to implement the 
     Maritime Security Fleet Program has been introduced by 
     request as S. 1945. The Committee will continue to examine 
     carefully the adoption of maritime reform legislation this 
     year.


                     science, technology, and space

           Technology Programs and High-Performance Computing

       Overview: S. 4/H.R. 820. On March 16, 1994, the Senate 
     approved H.R. 820, as amended by the Senate-passed text of S. 
     4, the National Competitiveness Act. This bill: (1) 
     reauthorizes and strengthens the technology and 
     manufacturing assistance programs of the Technology 
     Administration of the Department of Commerce (DOC), 
     especially the programs of its National Institute of 
     Standards and Technology (NIST); and (2) authorizes 
     agencies participating in the existing High-Performance 
     Computing and Communications Initiative to work with 
     computer users and vendors to develop new applications of 
     advanced computing. As passed by the Senate, the 
     legislation authorizes a total of $1.9 billion for FY 1995 
     and 1996 for these programs.
       DOC's Technology Administration. DOC's Technology 
     Administration contains four key technology agencies--the 
     Office of the Under Secretary for Technology, the Office of 
     Technology Policy, the National Technical Information Service 
     (NTIS), and NIST.
       NIST is the largest of these four agencies. The Technology 
     Competitiveness Act (sections 5101-5164 of the Omnibus Trade 
     and Competitiveness Act of 1988, P.L. 100-418) upgraded DOC's 
     National Bureau of Standards into NIST and gave the agency 
     new authorities to help U.S. industry to speed the 
     commercialization of new products and improve manufacturing. 
     Under the 1988 Act, NIST assists industry in three ways: (1) 
     continued in-house research and technical services, which 
     provide industry with precise measurements, quality assurance 
     techniques, and new process technologies; (2) the services of 
     the Manufacturing Extension Partnership, including 
     Manufacturing Technology Centers and the State Technology 
     Extension Program; and (3) the Advanced Technology Program 
     (ATP), which provides seed money, on a matching basis, to 
     industrial consortia and individual companies to help to 
     develop new precompetitive, generic technologies.
       NIST is the government's principal agency for helping 
     American industry to develop and use the new basic 
     technologies necessary to spur economic growth, create new 
     industries, and help firms to create and retain jobs. In an 
     era when U.S. leadership in commercial technology is eroding, 
     when many jobs are at risk, and when major trading partners 
     spend a far higher percentage of their gross national 
     products on commercially-related research, these programs are 
     important to the future prosperity and security of the 
     Nation.
       The President's budget proposal includes an expansion of 
     NIST programs in FY 1995 and beyond. A 1993 presidential 
     document entitled ``A Vision of Change for America'' states: 
     ``the Federal Government has an important role to play in 
     promoting economic growth, in part by supporting research and 
     development. This proposal provides aggressive growth for the 
     National Institute of Standards and Technology (NIST). NIST 
     is the only Federal laboratory with the principal mission of 
     supporting U.S. industry and has provided a steady stream of 
     technology support to U.S. firms for over 90 years.'' The 
     President proposes during FY 1995 to increase the Technology 
     Administration (including NIST) by $439 million above the FY 
     1994 level of $526 million. H.R. 820 as amended by the Senate 
     reflects this approach.
       Applications of High-Performance Computing. In November 
     1991, Congress passed the High-Performance Computing Act 
     (P.L. 102-194), which created a multi-agency computing 
     initiative. The purpose of the program is to help to develop 
     advanced computers and computer networks and make them 
     available to the U.S. research and educational community. The 
     program is coordinated through the White House Office of 
     Science and Technology Policy (OSTP), which the Commerce 
     Committee oversees. The Administration strongly supports the 
     program and proposes funding increases for high-performance 
     computing for FY 1995 and outyears.
       Title VI of H.R. 820 as amended by the Senate would add a 
     new element to the existing Federal computer initiative. 
     While the current program focuses on computing for the U.S. 
     scientific community, H.R. 840 as amended authorizes an 
     information technology applications research program under 
     which these Federal agencies also will work with computer 
     users and vendors to develop applications of high-performance 
     computing in important areas in addition to science--
     particularly education, health care, manufacturing, and 
     information dissemination.

                      National Science Foundation

       This year, Congress will consider a new authorization bill 
     for the National Science Foundation (NSF) as well as the 
     President's budget proposals to expand funding for NSF 
     programs. The President has requested an FY 1995 budget of 
     $3.2 billion, an increase of $182 million over the FY 1994 
     level. A presidential statement on NSF lays out of the 
     rationale for an increase: ``Studies show that investments in 
     research and development (R&D) tend to be the strongest and 
     most consistent positive influence on productivity growth. 
     Most of NSF's investments are in university-based R&D 
     programs which * * * contribute to the Nation's productivity 
     by generating new scientific and engineering knowledge and 
     contribute to the training of the next generation of 
     scientists and engineers.'' In the past, the Committee has 
     approved legislation supporting NSF's programs.
       The Committee shares jurisdiction with the Committee on 
     Labor and Human Resources over six of NSF's seven budget 
     accounts--reaserch and related activities, academic research 
     infrastructure, major research equipment, salaries and 
     expenses, NSF headquarters relocation, and the Office of the 
     Inspector General. The agency's seventh account, education 
     and human resources, remains under the sole jurisdiction of 
     the Labor Committee. Therefore, the views and estimates 
     regarding NSF that are submitted by the Commerce Committee 
     address all of the agency's accounts except education and 
     human resources.

             National Aeronautics and Space Administration

       The President has requested $14.3 billion in FY 1995 for 
     the National Aeronautics and Space Administration (NASA), a 
     $250 million decrease from the FY 1994 appropriation. The 
     Committee notes that, while the President's budget request 
     for FY 1995 reduces the level of funding for NASA, it does 
     not cancel any major programs. The Committee will be 
     considering a NASA authorization bill for FY 1995.
       Funding for NASA is needed to support a variety of 
     aeronautical and space research and development programs, the 
     construction and maintenance of aerospace facilities, and a 
     civil service work force. The space station was redesigned 
     last year by NASA with a view toward lowering its costs. With 
     a reduced budget request, however, the space station will 
     continue to command a large percentage of the NASA budget in 
     FY 1995. In the FY 1995 budget request, the space shuttle 
     operations funding continues to decrease, to reflect 
     efficiencies in the program. The FY 1995 budget proposes a 
     substantial increase to the Mission to Planet Earth program. 
     A substantial decrease in funding is proposed in the 
     President's FY 1995 budget for aeronautics research and 
     technology for FY 1995.
       The Committee will be reviewing carefully the funding 
     allocations for individual programs in NASA's authorization 
     bill. In establishing funding priorities for NASA for FY 
     1995, it is important to highlight funding initiatives 
     proposed by the President to enhance the competitiveness of 
     U.S. industry such as the High Speed Civil Transport, 
     Advanced Subsonics, and the High Performance Computing and 
     Communications program. Also, continued support of NASA's 
     Mission to Planet Earth program is important to increasing 
     information in the earth sciences and maintaining the U.S. 
     commitment to the Global Change Research Program.


               surface transportation and consumer issues

                         Surface Transportation

       The Committee will continue its oversight of the motor 
     carrier, railroad, and pipeline industries with respect to 
     economic and safety issues. In this regard, the Committee 
     this year will be considering legislation to reauthorize the 
     National Railroad Passenger Corporations (Amtrak), the Local 
     Rail Freight Assistance Program (LRFA), the rail safety 
     program, and the Hazardous Materials Transportation Act 
     (HMTA). The Committee also has reported legislation 
     authorizing funding for high-speed rail.
       The Committee will consider the reauthorization of the 
     Amtrak for FY 1995 and subsequent years. For FY 1995, the 
     President's budget proposal includes Amtrak's request for 
     $788 million, including capital grants of $252 million and 
     Federal operating grants in the amounts of $536 million. 
     Amtrak recommends that Congress establish a capital fund 
     account to fund Amtrak capital improvements in the future. 
     The President's budget additionally requests $199.6 million 
     for the Northeast Corridor Improvement Program (NECIP) for FY 
     1995, which is a $25.4 million decrease from the FY 1994 
     appropriated level.
       With regard to LRFA, the President's FY 1995 budget request 
     does not include any funding for this program. The Committee 
     will be reviewing the feasibility of this program, and a 
     bill, S. 1942, has been introduced reauthorizing it.
       With respect to rail safety, the President's budget 
     requests $47.7 million for FY 1995, of which approximately 
     $43.5 million is to be collected through an expanded user fee 
     base. This request would include funds for enforcement, 
     automatic track inspection, and safety regulation and program 
     administration.
       With respect to other transportation safety programs, the 
     Hazardous Materials Transportation Act of 1993 was reported 
     by the Committee last session. This bill, if enacted, would 
     authorize $13.1 million for FY 1995 to facilitate HMTA's 
     safety agenda and is consistent with the President's budget 
     proposal of $12.99 million.
       Regarding high-speed ground transportation, S. 839, the 
     High-Speed Ground Transportation Development Act of 1993, was 
     reported last session by the Committee. The President's 
     budget has requested $32.5 million for FY 1995, to assist in 
     developing high-speed technologies and devising a cohesive 
     national plan for high-speed rail ground transportation, of 
     which $5 million would be funded out of the Highway Trust 
     Fund. The President's budget does not include any funding for 
     magnetic levitation research and development.

             National Highway Traffic Safety Administration

       The Administration has requested a total budget of $321 
     million, which is slightly higher than its FY 1994 budget. Of 
     this amount, $77.743 million has been allocated for 
     operations and research, and $196 million for highway traffic 
     safety grants. The remaining $48.092 million will be derived 
     from the Highway Trust fund for additional operations and 
     research programs.
       The $77.743 million budgeted for operations and research is 
     close to $2 million less than the amount ($79 million) 
     projected by the Congressional Budget Office (CBO) based on 
     current spending. Programs funded under operations and 
     research include rulemakings, enforcement, and research and 
     analysis. Under the 1991 Intermodal Surface Transportation 
     Act (ISTEA), NHTSA is required to consider or initiate 
     several safety rulemakings. NHTSA's enforcement programs 
     include the implementation of vehicular safety standards, 
     fuel economy requirements, recalls, and the investigation of 
     vehicular defects.
       The $196 million for highway safety grants is consistent 
     with CBO's projections based on current spending. NHTSA is 
     required under ISTEA to issue, under its traffic safety 
     grants program, grants to states to encourage the enactment 
     of more stringent alcohol and impaired driving laws, and 
     increases in safety belt and motor vehicle helmet use.

                        Federal Trade Commission

       The Administration has requested a total FY 1995 budget of 
     $96.1 million for the Federal Trade Commission (FTC), which 
     is lower than the amount authorized in S. 1179, passed by the 
     Senate last session as an amendment to H.R. 2243 and now in 
     conference with the House. Of the amount proposed by the 
     Administration, approximately $33 million (34%) is projected 
     to be obtained from Hart-Scott-Rodino merger filing fees, 
     which represents a significant increase in the percentage of 
     the agency's total budget that is to be obtained from filing 
     fees. (The FTC's FY 1994 operating budget is $88 million, of 
     which $20.820 million (23%) is projected to be obtained from 
     filing fees.) The Administration predicts that there will be 
     an increase in the amount of Hart-Scott-Rodino fees due to an 
     increase from $25,000 to $40,000 per merger filing. The FTC's 
     FY 1995 budget consequently represents a reduction in the 
     amount of the FTC's government funding.
       Under its FY 1995 proposed budget, the FTC will be required 
     to make major staff reductions. The Administration has 
     requested the FTC to reduce its full-time employees by 14 
     during the current fiscal year and by 15 in FY 1995. The 
     employee reductions would affect both the FTC's competition 
     and consumer protection bureaus. Concerns have been raised 
     about these required reductions.

                   Consumer Product Safety Commission

       The Administration has proposed funding for the Consumer 
     Product Safety Commission (CPSC) for FY 1995 at $40.2 
     million, representing a 5 percent reduction from its FY 1994 
     appropriation. The agency has indicated that this funding 
     level could affect adversely its ability to carry out fully 
     its product safety programs, and could require it to reduce 
     its work force by approximately 5 percent. The Committee will 
     be considering the reauthorization of the CPSC for FY 1995 
     this year.
       In conclusion, this Committee remains committed to 
     responsible deficit reduction while maintaining adequate 
     funding for those priority programs under its jurisdiction.
       With warmest regards, I am
           Sincerely,
                                               Ernest F. Hollings,
     Chairman.

                          ____________________