[Congressional Record Volume 142, Number 11 (Friday, January 26, 1996)]
[House]
[Pages H920-H922]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    BALANCED BUDGET DOWNPAYMENT ACT

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Kentucky [Mr. Rogers] is recognized for 5 minutes.
  Mr. ROGERS. Mr. Speaker, this Balanced Budget Downpayment Act is an 
important step forward. Funding levels will now be based on the 
conference report funding levels for the fiscal year 1996 Commerce, 
Justice, State, and Judiciary appropriations bill. With a few 
exceptions, relating to issues that remain to be negotiated out, 
congressional priorities will be reflected from this point forward, 
both in terms of programs that merit continued funding and those where 
decreases are justified.
  For law enforcement programs, small business loans, passports, visas, 
diplomatic security, and the Judiciary, full-year funding has already 
been provided in the previous two targeted appropriations bills.
  In this bill, funding is being provided through March 15 for the 
remaining programs under the jurisdiction of the Commerce, Justice, 
State, and Judiciary Subcommittee at the fiscal year 1996 conference 
report levels, under fiscal year 1995 terms and conditions. This puts 
funding for these programs on the path that will lead to substantial 
savings--in the Commerce Department, for instance, the conference 
report provided levels that are a 16-percent reduction from fiscal year 
1995, while providing substantial additional resources for the Nation's 
fight against crime.
  So this is an important change, from a formula that keeps funding 
tied to fiscal year 1995 levels as a minimum, to one that implements 
that fiscal year 1996 priorities which have been voted on and passed, 
in the case of the Commerce, Justice, State, and Judiciary 
appropriations bill, three times in this House.
  I support this Balanced Budget Downpayment Act, and urge all Members 
to vote for this legislation that will keep the Government fully 
functioning through March 15.
  I am including a short summary of the provisions in this legislation 
as they relate to the Commerce-Justice Subcommittee, and also a 
statement clarifying a number of issues.

[[Page H921]]


   Commerce-Justice Subcommittee Provisions in First Balanced Budget 
                            Downpayment Act

       Provides FY 1996 conference level under FY 1995 terms and 
     conditions through March 15, 1996, for all CJSJ accounts with 
     the following exceptions:
       Any programs funded in the previous targeted appropriations 
     bills.
       Advanced Technology Program is funded at 75 percent of FY 
     1995 level for FY 1995 and prior year continuation grants and 
     program administration only, for the period covered by the 
     legislation.
       Cops on the Beat program is funded at 75 percent of FY 1995 
     level, for the period covered by the balanced budget 
     legislation.
       The Ounce of Prevention Council, GLOBE, and Drug Courts are 
     also funded at 75 percent of the FY 1995 level.
       In addition, the following provisions are included:
       A provision allowing Departments and agencies expanded 
     transfer authority to pay downsizing or closeout costs 
     resulting from the funding levels in this legislation, 
     subject to standard reprogramming procedures.
       A provision allowing funding for Legal Services Corporation 
     to be obligated only at a rate to cover operations during the 
     time period of this legislation.
       A provision withholding funding for Truth in Sentencing 
     grant program, except for SCAAP and CAP funds, pending 
     revision to current Crime Bill program.
       A provision allowing the USIA IG to continue receiving 
     funds.
       A provision (section 209) keeping Securities and Exchange 
     Commission registration fees at rate assumed in FY 1996 
     conference.
       A provision (section 211) applying FY 1996 terms and 
     conditions to amounts provided in previous targeted 
     appropriations for Department of Justice programs and 
     enacting into law the Justice General Provisions in the FY 
     1996 conference report, except Truth in Sentencing 
     authorization.
       A provision restricting travel expenses for all Cabinet 
     officers (except State, the UN Ambassador, Defense and CIA) 
     to 110 percent of the average for FY 1990-FY 1995.

                    Statement of Hon. Harold Rogers

       The section of the Balanced Budget Downpayment Act that 
     relates to the Commerce, Justice, State and Judiciary 
     appropriations bill provides generally for funding at the 
     fiscal year 1996 conference level under fiscal year 1995 
     terms and conditions, with certain exceptions that are 
     spelled out in the legislation. All departments and agencies 
     are expected to use the fiscal year 1996 conference report 
     and statement of managers and the House and Senate reports 
     relating to the fiscal year 1996 bill to the maximum extent 
     in allocating resources under this legislation, because that 
     guidance will, under all likelihood, become the final 
     guidance for expenditure of fiscal year 1996 funds, and 
     departments and agencies will ultimately be expected to have 
     committed their resources in accord with the fiscal year 1996 
     guidance that the House and Senate Appropriations 
     Subcommittees have provided.


                         department of justice

       Office of Justice Programs: Funding is included for 
     discretionary and formula grants under the Edward Byrne 
     Memorial State and Local Law Enforcement Program. It is the 
     Committee's intent that discretionary grants should be made 
     in accordance with the joint Statement of Managers and that 
     the Department of Justice should prioritize funding for 
     requirements of State and local law enforcement related to 
     the 1996 Olympic Games. Truth-in-Sentencing Grants/SCAAP: A 
     provision is included that withholds funding for a new Truth-
     in-Sentencing Prison Grant program until details on revised 
     legislation are worked out. However, funding that was 
     included under this program in the Conference Report for 
     reimbursement to states for the incarceration of criminal 
     aliens is provided.
       A provision is included that applies terms and conditions 
     of the 1996 Conference Report and Statement of Managers to 
     amounts provided in the previous targeted appropriations 
     legislation for various Department of Justice programs. 
     Within these terms and conditions the Committee would like to 
     clarify the following:
       Under the Interagency Crime Drug Enforcement Program, it is 
     the Committee's intent that the Attorney General, in 
     consultation with the Office of Investigative Agencies 
     Policies, will allocate resources among agencies 
     participating in Interagency Crime and Drug Task Forces based 
     on current task force requirements.
       Furthermore, it is the Committee's intent that funding 
     provided for the Federal Prison System includes the 
     construction of new prisons under the terms specified in the 
     Statement of Managers in addition to continued support for 
     the National Institute of Corrections, both of which are 
     critical to efforts to incarcerate prisoners.


                         department of commerce

       Advanced Technology Program--The bill includes language 
     providing funding for the Advanced Technology Program, only 
     for program administration and continuation grants for ATP 
     projects originally awarded in fiscal year 1995 or earlier, 
     at a rate of operations of up to 75 percent of the final 
     fiscal year 1995 appropriated level. This provision will not 
     allow any new ATP grant competitions to be held during the 
     period covered by this Act.
       Closing Costs Provisions--The bill includes language 
     similar to a provision included in the Conference Report on 
     the FY 1996 Commerce Justice Appropriations Act 
     requiring that costs associated with personnel actions 
     resulting from funding reductions included in this 
     subsection to be absorbed within the total budgetary 
     resources available to each Department or agency. The 
     provision would allow each Department or agency to 
     transfer funds between appropriations accounts as 
     necessary to cover costs associated with program closeouts 
     or downsizing of agencies. This transfer authority is 
     provided in addition to the authorities available under FY 
     1995 terms and conditions, and is subject to the 
     Committee's standard reprogramming procedures.
       This closing cost provision allows Departments and agencies 
     the flexibility to fund only the costs associated with 
     personnel actions resulting from agency or program 
     termination or shutdowns.


                department of state and related agencies

       With respect to Title IV of the CJSJ bill, covering the 
     Department of State, United States Information Agency and 
     Arms Control and Disarmament Agency, funding at the 
     conference level generally provides an operating level above 
     what has been in effect under the previous continuing 
     resolutions.
       For Contributions to International Organizations and 
     Contributions for International Peacekeeping Activities, the 
     amount of funds available to be obligated is intended to be 
     no higher than the proportionate amount of the full year 
     funding level that corresponds to the number of days covered 
     by this legislation.
       Under the United States Information Agency, continued 
     funding for the Inspector General has been provided for the 
     term of this legislation. The funding is to be derived from 
     the conference level of funding for the State Department's 
     Inspector General, because that level of funding anticipated 
     the merger of the USIA IG office into the State IG office. 
     Both IG offices are to continue to prepare for the merger, 
     which is fully anticipated to occur during this fiscal year.
       With respect to Educational and Cultural Exchange Programs, 
     the statement of managers language in the conference report 
     concerning the Tenth Paralympiad should be carried out on an 
     expedited basis, and sufficient funds should have been 
     appropriated under previous Continuing Resolutions and this 
     current legislation to permit this issue to be addressed 
     during the period in which the current legislation is in 
     effect.


                            related agencies

       Federal Trade Commission.--The Committee expects that 
     amounts provided in the bill for both the Federal Trade 
     Commission and the Justice Department's Antitrust Division 
     will allow these agencies to function at the full operating 
     levels assumed in the conference report on H.R. 2076, based 
     on offsetting collections of $48,262,000 for each agency.
       Legal Services Corporation.--The funding included for LSC 
     is interim funding for basic field programs until a new 
     competitive grant program is implemented. The Committee 
     expects LSC to begin a competitive grant program on April 1, 
     1996 and to be prepared to implement restrictions outlined 
     in the conference report.

                     Small Business Administration

       Disaster Assistance.--The Committee is aware that funding 
     levels provided for the SBA Disaster Loan Program subsidies 
     and administrative expenses may be insufficient to continue 
     the program for the full fiscal year, particularly 
     considering the rate of disasters thus far this fiscal year. 
     The Committee notes that there are two primary reasons for 
     the shortfall. First, the request for subsidy amounts for the 
     loan program was based on proposed legislative changes 
     modifying the interest rate on SBA disaster loans. While the 
     full request for loan subsidies was appropriated, these 
     proposed legislative changes were not enacted into law. As a 
     result, the appropriated subsidy amount of $34.4 million 
     allows new loan program authority of only $122.5 million 
     instead of $407 million as proposed. Therefore, the shortfall 
     is the result of lack of action on proposed legislative 
     changes, which is not under the jurisdiction of the 
     Appropriations Committee, and the fact that the 
     Administration, as a result of no action on the changes, has 
     not amended its budget request to provide additional 
     resources or identified the offsets necessary to provide 
     those resources.
       The second reason for the shortfall is the failure of the 
     Small Business Administration to adequately budget for the 
     appropriate level of administrative costs for even a 
     ``normal'' disaster year in the appropriate account for this 
     program. Instead, the SBA requested the funds for the 
     administrative costs associated with disaster loan making 
     under a proposed emergency contingency appropriation which 
     would have been outside the budget caps and cannot be 
     considered by the Congress under current budget policy. The 
     Committee expects SBA to reprogram funding to cover the base 
     requirements for disaster loan making within the funds 
     provided under this Act. The Committee further expects that 
     future budget requests for administrative expenses under the 
     disaster loan program account will fully cover the costs of 
     providing the services required to manage the loan program 
     level assumed in the budget request.
       The Committee recognizes the severity of disasters such as 
     the devastating flooding in Pennsylvania and other mid-
     Atlantic States 

[[Page H922]]
     following recent storms, and is confident that SBA will be able to 
     respond appropriately and responsibly to these dire 
     situations within the resources currently available under the 
     Disaster Loan Program during the period covered by the 
     Balanced Budget Down Payment Act. The Committee recognizes 
     that additional funds for the SBA Disaster Loan Program may 
     be required prior to April, and believes that if additional 
     resources are needed, they can be provided through the 
     reprogramming process to assure continuation of the program 
     through March 15, 1996. The Committee will work with the 
     Administration to determine the appropriate level of funding 
     for this program as well as potential sources of funding 
     offsets.
       Small Business Development Centers.--The bill provides 
     funding for the SBA Small Business Development Center program 
     at the FY 1996 conference level. This will allow SBA to 
     continue to make funding commitments with State resource 
     partners in the SBDC program based on the full conference 
     amount.

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