Appropriations for FY1998: Military Construction

Congressional research reportFeb 26, 1998

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Text

97-210 F

Appropriations for FY1998:

Military Construction

Updated February 26, 1998

(name redacted)

Analyst in National Defense

Foreign Affairs and National Defense Division

Appropriations are one part of a complex federal budget process that includes budget resolutions,

appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation

bills. The process begins with the President's budget request and is bounded by the rules of the

House and Senate, the Congressional Budget and Impoundment Control Act of 1974 (as amended),

the Budget Enforcement Act of 1990, and current program authorizations. In addition, the line item

veto takes effect for the first time in 1997.

This report is a guide to one of the 13 regular appropriations bills that Congress passes each year.

It is designed to supplement the information provided by the House and Senate Subcommittees on

Military Construction Appropriations. It summarizes the current legislative status of the bill, its

scope, major issues, funding levels, and related legislative activity. The report lists the key CRS staff

relevant to the issues covered and related CRS products.

Since this report was last updated, data related to the FY1998 appropriations may have changed

through supplemental appropriations or rescissions, entitlement revisions, or scorekeeping

adjustments. These changes will be reflected in a subsequent report.

NOTE: A Web version of this document with

active links is available to congressional staff at

http://www.loc.gov/crs/products/apppage.html

Appropriations for FY1998:

Military Construction

Summary

The military construction (MilCon) appropriations bill finances (1) military construction

projects in the United States and overseas; (2) military family housing operations and

construction; (3) U.S. contributions to the NATO Security Investment Program; and (4) most

base realignment and closure costs.

This paper reviews the appropriations and authorization process for military

construction. The appropriators have finished their work on H.R 2016. Both chambers

approved the conference report for the military construction appropriations bill (H.Rept. 105247) and the President signed the bill on September 30, 1997, creating P.L. 105-45. The

defense authorizing conference report (H.Rept. 105-340) passed the House on October 23 and

the Senate on November 7. The President signed the authorization bill on November 18,

1997, creating P.L. 105-85.

The debate perennially centers on the adequacy of the President's budget for military

construction needs and the necessity for congressional add-ons, especially for Guard and

Reserve projects. FY1998 congressional additions to the military construction request have

prioritized projects to improve the quality of life for servicemembers and Guard and Reserve

construction.

For FY1998, the Administration has requested budget authority of $8.4 billion. This is

down from the FY1996 level of $11.1 billion and the FY1997 level of $9.8 billion. The

House and Senate appropriations conference committee added $800 million and 129 additional

projects to the request.

On October 6, 1997, the President exercised his line item veto authority on the FY1998

military construction appropriations law. Thirty-eight projects were eliminated by the

President because they were not requested, could not be completed in FY1998 and did not

contribute to the quality of life for servicemembers. The savings of $287 million from the

eliminated projects go directly to the U.S Treasury for deficit reduction -- not to the

Department of Defense.

The Congress considered two disapproval bills. The Senate passed S. 1292, which

would have reversed the cancellation of 36 of the 38 projects, on October 30. The House

passed a bill to reinstate all 38 projects -- H.R. 2631 -- on November 8. Then the Housepassed version was approved by the Senate on November 9, obviating the need for a

conference committee. The President vetoed the bill on November 13th. On February 5,

1998, the House overrode the President's veto of H.R. 2631 by voting 347-69. On February

26, 1998, the Senate overrode the veto by a vote of 78-20. With the veto overturned, funding

is restored for the 38 targeted projects.

Key Policy Staff

Area of Expertise

Name

CRS Division

Telephone

Base Closure

David Lockwood

FAND

7-....

Defense Budget, Mil. Const.

Mary Tyszkiewicz

FAND

7-....

Defense Budget

(name redacted)

FAND

7-....

DOD Outsourcing, Privatization

Valerie Grasso

FAND

7-....

Guard and Reserve Issues

Robert Goldich

FAND

7-....

Contents

Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Background: Content of Military Construction

Appropriations and Defense Authorization Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Appropriations Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Line-item Veto Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Disapproval Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Senate Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

House Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Conference Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

House Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Senate Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Budget Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Authorization Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Conference Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

House Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Senate Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Key Policy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Past Debates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Congressional Additions to the Administration Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Debate Over Added Projects: The McCain Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Current Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overseas Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prior Year Savings for Current Year Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Base Realignment and Closure (BRAC) concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Government Performance and Results Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

"Honest" Budgets and the Future Years Defense Plan for Military Construction . . . . . . . . . . . . . . . . . . .

Guard and Reserve Project Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Housing as Important to the Quality of Life for Servicemembers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Military Unaccompanied Housing Improvement Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Housing Revitalization Support Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Improving the Utility Infrastructure of Military Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Vision 21: Consolidating Testing & Evaluation Centers and Laboratories . . . . . . . . . . . . . . . . . . . . . . . .

Real Property Maintenance Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Major Funding Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

For Additional Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CRS Issue Briefs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CRS Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Selected World Wide Web Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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List of Tables

Table 1. Status of Military Construction Appropriations, FY1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Table 2. Mil. Con. Appropriations, FY1994-98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Table 3. Mil. Con. Appropriations by Account: FY1996-98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Table 4. Mil. Con. Appropriations by Account - Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Table 5. Congressional Additions to Annual Department of Defense Budget Requests for National Guard and Reserve

Military Construction, FY1985-97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Table 6. Military Construction Projects

Targeted by Line-Item Veto, October 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Appropriations for FY1998:

Military Construction

Most Recent Developments

In their appropriations conference report (H.Rept. 105-247) both chambers added

$800 million and 129 projects to the President's request for the military construction bill

H.R. 2016. The President signed the bill on September 30, 1997, creating P.L. 105-45. On

October 6, the President exercised his line item veto authority, by targeting 38 projects in

24 states added by Congress, totalling $287 million.

Both the Senate Appropriations Committee and the House National Security

Committee held hearings in October on the decision process for the President's line item

veto of the military construction bill.

The Congress considered two disapproval bills. The Senate passed S. 1292, which

would have reversed the cancellation of 36 of the 38 projects, on October 30. The House

passed a bill to reinstate all 38 projects -- H.R. 2631 -- on November 8. Then the Housepassed version was approved by the Senate on November 9, obviating the need for a

conference committee. The President vetoed the bill on November 13.

The projects were restored by a veto override of H.R. 2631 in the second session of the

105th Congress. On February 5, 1998, the House took the first step by voting 347-69 to

overturn the President's veto. On February 26, 1998, the Senate overrode the veto by a vote

of 78-20.

Background: Content of Military Construction

Appropriations and Defense Authorization Bills

The military construction appropriations bill funds construction projects and real

property maintenance of the active Army, Navy & Marine Corps, Air Force, and their reserve

components; defense-wide construction; U.S. contributions to the NATO Security Investment

Program (formerly called the NATO Infrastructure Program); and military family housing

operations and construction. The bill also provides funding for the Base Realignment and

Closure account which finances most base realignment and closure costs, including

construction of new facilities for transferred personnel and functions, and environmental

cleanup at closing sites.

The military construction appropriations bill is only one of several annual pieces of

legislation that concern funding for national defense. Other major legislation includes (1) the

defense appropriations bill, that provides funds for all military activities of the Department

of Defense, except for military construction; (2) the national defense authorization bill, that

authorizes appropriations for national defense1, and (3) the energy and water development

appropriations bill, that provides funding for atomic energy defense activities of the

Department of Energy. Two other appropriations bills, VA-HUD-Independent Agencies and

Commerce-Justice-State, also include small amounts for national defense. In addition, the

energy and water development appropriations bill provides funds for civil projects carried out

by the U.S. Army Corps of Engineers.

The annual defense authorization bill authorizes all the activities in the defense

appropriation measures described above. Therefore, major debates over defense policy and

funding issues, including military construction can be also found in the authorization bill.

Since issues in the defense authorization and appropriations bills intertwine, this report

highlights salient parts of the authorization bill, along with the military construction

appropriation process.

Most funds appropriated each year must be expended in that fiscal year. Military

construction appropriations are an exception, since these funds are made available for

obligation for five fiscal years.

The separate military construction appropriations bill dates to the late 1950s when a

large defense build-up occurred in response to intercontinental ballistic missile threats and the

Soviet launch of Sputnik. Defense construction spending soared, as facilities were hardened,

missile silos were constructed, and other infrastructure was built. The appropriations

committees established military construction subcommittees to deal with this new level of

activity. Consequently, the separate military construction bill was created. The first standalone military construction bill was in FY1959, P.L. 85-852.

Previously, military

construction funding was provided through annual defense appropriations or supplemental

appropriations bills.

Military construction appropriations are the major, but not the sole, source of funds for

facility investments by the military services and defense agencies. The defense appropriations

bill provides some funds for real property maintenance in operation and maintenance

accounts. In addition, funds for construction and maintenance of Morale, Welfare, and

Recreation-related facilities are partially provided, through proceeds of commissaries,

recreation user fees, and other income.

Consideration of military construction budget starts when the President's budget is

delivered to the Congress in late February or March. For FY1998, the President's budget

requested $8.4 billion, 14% less than the $9.8 billion appropriated for FY1997.

Status

Table 1 shows the key legislative steps necessary for the enactment of the FY1998

military construction appropriation.

1

See Appropriations for FY1998: Defense, by (name redacted), CRS Report 97-205, for details

on the defense authorization and appropriation process.

Table 1. Status of Military Construction Appropriations, FY1998

Subcommittee Markup

House

Senate

6/18/97

7/17/97

House

Report

House

Passage

H.Rept.

105-150

7/8/97

Senate

Report

S. Rept.

105-52

Senate

Passage

7/22/97

Conference

Report

H.Rept. 105247

Conference Report

Approval

House

Senate

9/16/97

9/17/97

Public Law

P.L. 105-45

9/30/97

Appropriations Process

Line-item Veto Process. On October 6, 1997, the President exercised his line-item

veto authority2 on the military construction appropriations law (P.L. 105-45), eliminating 38

projects in 24 states, totalling $287 million. (See Table 6.)

The $287 million savings will go directly to deficit reduction and not to the Department

of Defense. The Chair of the President's National Economic Council -- Gene Sperling -explained to the press on October 6 that "the main savings from the line item veto comes not

from what you line-item, but from the savings that you get by encouraging fiscal discipline

in future bills". He continued that "...for the line item veto to have its power as a deterrent

effect on unnecessary spending...the President has to be willing and is willing to use it when

necessary."

The President used three criteria to line item veto projects added by Congress.

1. The projects were not in the Department of Defense's future years defense plan

(FYDP).

2. Design work for the projects was not completed and therefore the project could not

be executed in the coming fiscal year.

3. The projects would provide no "substantial" contribution to improving the quality of

life of U.S. troops.

The Congress can send the vetoed items back to the President with a majority vote. This

is called a disapproval bill. If the President vetoes them again, a two-thirds majority is needed

to override.

Disapproval Bills. The Congress considered two disapproval bills:

! S. 1292, which would have reversed the cancellation of 36 of the 38 projects

(see Senate Action below for details), and

! H.R. 2631, which reinstates all 38 projects.

The House passed H.R. 2631 on November 8, 1997 by a 362-64 vote. Then the Housepassed version was approved by the Senate on November 9, 1997 by voice vote, obviating the

need for a conference committee.

The President vetoed H.R. 2631 on November 13, 1997, despite the White House's

admission that they used erroneous data for some of the canceled projects. The Office of

2

See The Line Item Veto Act: Procedural Issues, by (name redacted) and (name redacted)

CRS Report 97-973, for details on the line item veto process.

,

Management and Budget (OMB) has refused to confirm which projects or how many were

vetoed by mistake.

The projects were restored by a veto override of H.R. 2631 during the second session

of the 105th Congress. On February 5, 1998, the House took the first step by voting 347-69

to overturn the President's veto. On February 26, 1998, the Senate overrode the veto by a vote

of 78-20. With the veto overturned, funding is restored for the 38 targeted projects.

Senate Action. On October 9, the Senate Appropriations Committee held a

hearing on the use of the line item veto on the military construction appropriations bill. The

witnesses were military budget officials from the Army, Air Force and Navy. Chairman

Stevens stated that the purpose of the hearings was to gather factual information on the

criteria used for the 38 projects that were vetoed. The Senators also stated their opinions on

the President's use of the line item veto on the bill.

According to the Clinton Administration, the vetoed projects needed to meet all three

criteria (see above) to be put on the veto list. The criteria did not hold up to the data the

military officers provided on particular projects. First, the data showed that 33 of the 38

projects were in the Pentagon's FYDP. Second, some of the projects did have design work in

progress and that the original information that President received on design work for some

projects was incomplete. Also, these were "executable" projects, defined in the testimony as

contracts that could be started in FY1998. Third, the committee questioned the White House's

judgement of the quality of life merit of the 38 projects.

Most of the 38 projects did not meet two out of three criteria for inclusion on the veto

list. Chairman Stevens stated that based on these facts that he would introduce a disapproval

bill to overturn the veto.

On October 24, the Senate Appropriations Committee approved S. 1292 to overturn 34

of the 38 line item vetoes in the military construction appropriations (H.R. 2016, P.L. 10545). Four items from Indiana, Wisconsin and South Dakota were left out of the disapproval

measure, since Senators from these states did not want to vote for a veto override or go on

record opposing the line item veto. On October 30, the Senate passed S. 1292 as amended

with two more Indiana projects, by a 69-30 vote. (See the Disapproval Bills section above

for information on passage and the veto override process.)

House Action. On October 22, the House National Security Committee (HNSC)

held a hearing on the line item veto and canceled projects in the military construction and

defense appropriations bills. Although jurisdiction for remedying line item vetoes resides in

the Committee on Appropriations, the HNSC stated that it was important to investigate the

data and process that the President used to choose projects to veto. As in the Senate

Appropriations Committee hearing on the line item veto, the witnesses for the HNSC hearing

were military budget officials from the Army, Air Force and Navy. (Hearing testimony is

located at http://www.house.gov./nsc/)

The purpose of the hearing was to establish the record on the specific items that were

vetoed, the rationale for the cancellation and the effect the delay of the projects may have on

the armed forces. The HNSC was concerned about the use of the line item veto and some

members called for repeal of the law. Others focused on the chronic underfunding of the

defense budget and that the savings from the canceled projects went to U.S. Treasury and out

of the defense budget.

Members were irked that the vetoed projects were considered pork by the President and

media. Those members pointed out that the added projects went through a rigorous screening

process by the HNSC, were requested by facilities as priority projects and that many of the

projects were in the President's Future Years Defense Plan (FYDP). The military budget

officers admitted that erroneous data on the design status was passed from the Pentagon to

OMB. The members were distressed that their congressional offices had more up-to-date data

on the design of projects than the Pentagon and President. Inadequate and out-of-date data

highlighted the flaws of the decision process to cancel projects.

The HNSC invited the Deputy Secretary of Defense, John Hamre, and the Director of

OMB, Franklin Raines to the October 22 hearing. However, both declined to testify. Some

members of the HNSC were incensed these top officials did not attend the hearing, especially

after it became clear that the process questions the members were interested in could only be

answered by Hamre and Raines. The House National Security Committee would like to have

another hearing on the line item veto with John Hamre and Franklin Raines in attendance.

Representative Skeen from New Mexico introduced H.R. 2631 in early October, which

would reverse the cancellation of the 38 vetoed projects. The House called up the bill under

suspension of the rules on November 8. The measure passed by a 352-62 vote. (See the

Disapproval Bills section above for details on passage and the veto override process.)

Conference Agreement. The conference committee (H.Rept. 105-247) added $800

million to the President's request. The House approved the conference report by a vote of

413-12 on September 16. The Senate passed the report by a vote of 97-3 on September 17.

The bill was signed into law (P.L. 105-45) by the President on September 30.

The conference agreement used savings of $108.8 million from reestimations of inflation

and adjustments of foreign currency fluctuations. These savings were taken as a lump-sum

from the military construction appropriations bill total. (See Table 4.)

The conference committee rejected the practice of using prior year savings for current

FY1998 program, and instructed the Pentagon to use the traditional method of requesting

rescissions of funds by account and fiscal year. (See Prior Year Savings for Current Year

Programs section below for more information.)

The conference committee's report also highlighted Base Realignment and Closure

(BRAC) construction projects, historic preservation and unified design guidance. The

conference report emphasized that defense committees must be notified of the transfer of

BRAC construction money, and that construction money cannot be reprogrammed. The

conference was concerned that historic family quarters are costly and tasked the Pentagon to

work with appropriate Federal agencies to reduce the cost. The conference report also

directed the DOD and armed services to report on possible unification of military construction

design guidance and procedures.

House Action. On July 8, the House approved -- without amendment -- the $9.183

billion recommended by the House Military Construction Appropriations Subcommittee (H.R.

2016, H.Rept. 105-150) by a vote of 395-14. The House added $799.8 million to the

President's request. Of the money appropriated, 42% is for family housing; 35% is for general

military construction projects, such as the construction and revitalization of barracks, medical

facilities, day care centers, environmental compliance and energy conservation and 23% is to

meet the obligations of Base Realignment and Closure (BRAC) accounts. (To view a fact

sheet on the subcommittee markup and full committee markup, go to the press release section

of Representative Packard's home page: http://www.house.gov/packard/).

House floor consideration had two themes. First, Rep. Packard emphasized

servicemembers' quality of life as connected to the quality of military facilities. Second, Rep.

Bereuter noted that the Army National Guard budget did not receive any additional money

from the House, since the Guard did not clearly communicate its plans to the Military

Construction Appropriations Subcommittee.

Senate Action. The Senate Appropriations Committee (SAC) marked up their version

of the Military Construction Appropriations Act on July 17. The subcommittee did not go

through the markup process -- the bill went directly to the full committee. The SAC bill

provides a total of $9.182 billion for military construction, which exceeds the President's

request by $799.7 million and is $100,000 under the House appropriation. Of the money

appropriated, 41% is for family housing; 36% is for military construction and 23% is for the

obligations of the base realignment and closure accounts. (See Table 4 or S.Rept. 105-52 for

a chart comparing the President's request, the House bill and the Senate bill.)

In Section 125 of their bill, the Senate Appropriations Committee used June 1997

inflation numbers from Office of Management and Budget to reduce military construction,

NATO infrastructure and base realignment and closure accounts by $31 million. The SAC

directed that the inflation savings be applied to family housing accounts on a pro rata basis.

Therefore, the $31 million inflation savings is taken as a lump sum over the entire military

construction and family housing budget. (See Table 4.)

The Senate Appropriations Committee highlighted barracks construction programs,

medical facilities and environmental compliance projects in their bill. The SAC approved

$659.9 million for the barracks construction program to provide single service members better

barracks and dormitories. This recommended level is $17.2 million over the budget request

and $91.9 under the FY1997 level. An additional $208.5 million for medical facilities and

$103.6 million for environmental clean-up projects were added by the Senate.

Although the bill totals are almost the same, active and reserve forces fared differently

in the House and Senate bills. In the House, active forces fared better than reserve forces.

The reverse is true in the Senate bill, which added $392 million for Guard and Reserve

facilities, compared to the House's increase of $155 million.

On July 22, the Senate approved the SAC recommendations for the FY1998 Military

Appropriations Act. The vote was unanimous, except for the no votes cast by the Senators

from Arizona -- McCain and Kyl. In the Senate floor debate, Sen. McCain protested against

what he called the additional, low-priority and unrequested military construction projects,

which totalled $682 million. He asked that the additional projects -- 42 active duty and 50

Reserve & Guard -- be printed in the record. Sen. McCain also worried about the trend for

Senators to earmark design and planning funds, which previously were left for the discretion

of the armed services departments.

Budget Resolution. The budget resolution sets the stage for the appropriations

process. This year's agreement (H.Con.Res. 84) passed on May 18, 1997, and set ceilings on

budget authority and outlays for functional categories of the budget. The national defense

budget function, called 050 was set at $268.2 billion in budget authority and $266.0 billion

in outlays for FY1998. The Department of Defense's budget accounts for 95% of the 050

budget function3.

3

See CRS Report 97-294, Defense Budget for FY1998: Data Summary, by (name redacted) and

(continued...)

In the framework of the budget agreement, the chairs of the House and Senate

appropriations committees allocate the budget function according to appropriations

subcommittees. The amounts given to each subcommittee are called the 602(b) allocations.

The House Appropriations Committee approved its 602(b) allocations on June 18, with the

Senate Appropriations Committee approving theirs on June 19. The military construction

subcommittees received similar allocations - $9.183 billion in the House and $9.2 billion in

the Senate. These levels are down from the currently funded FY1997 level of $9.8 billion for

military construction.

Authorization Process

Conference Agreement. On October 23, the conference committee for the

defense authorization bill filed its report (H. Rept. 105-340). The conference committee

agreed on $9.2 billion ($800 million) more than the President's request) for military

construction. Over 55 percent ($441 million) of the increase is for quality of life projects.4

The defense authorizing conference report passed the House on October 23 and the Senate on

November 7, 1997. The President signed the authorization bill on November 18, 1997

creating P.L. 105-85.

House Action. The House of Representatives approved the $9.1 billion for

military construction as recommended by the House National Security Committee (HNSC)

in the FY1998 Defense Authorization bill, which is $750 million more than the President's

request. The HNSC reported that over 60% ($472 million) of the increase is dedicated to

quality of life enhancements. The committee highlighted additions to family housing, troop

housing, child development centers, education and training, and the public and installation

safety initiative.

Senate Action. On July 11th, the Senate approved approximately $707 million

more than the Administration's FY1998 budget, closely following the Senate Armed Services

Committee's (SASC) recommendation of a $700 million addition. The SASC designated $218

million of the additional money for unaccompanied personnel quarters, child development

centers, dining facilities, education centers and military family housing. The remaining $189

million is for high priority projects submitted by the military services that were not funded in

the President's request, many of them Guard and Reserve projects. Amendments to the

defense authorization bill added $7 million to the SASC recommendations for military

construction accounts. The chairman and ranking member of the SASC, Senators Thurmond

and Levin offered an amendment to reduce Army family housing and Navy military

construction by $15 million to partially offset additional projects in Missouri, Hawaii, New

Mexico and Vermont, which totaled $22 million.

In face of antiquated facilities which are important to quality of life for servicemembers,

both the HNSC (H.Rept. 105-132) and the SASC (S.Rept. 105-29) reports remarked on the

low budget request compared to prior years (25% less than the FY1996 request). The

3

(...continued)

(n ame redacted) for more information on the 050 budget function and definition of budge

authority and outlays.

4

t

. For more detailed information the FY1998 conference report and House authorization bill, see

the press releases and committee reports & bills sections on the House National Security Home Page

at http://www.house.gov./nsc/

authorizing committees noted the continuing low priority military facilities received, despite

maintenance and modernization backlogs.

The House and Senate have rejected the Administration's proposal for two more base

closure rounds and other reductions as proposed in the Quadrennial Defense Review (QDR)5 the DOD's May 19 report to Congress on long-term defense strategies. The House did not

consider more base closure rounds in committee or on the floor. In the Senate, a base closure

amendment was defeated in committee on a tie 9-9 vote. On July 9, the Senate passed an

amendment to the FY1998 authorization bill to direct the DOD to conduct a major review and

cost analysis before more bases could be closed. This amendment, sponsored by Senators

Dorgan and Lott, defeated a competing amendment by Senators McCain and Levin to require

two more base closing rounds in 1999 and 2001.

Key Policy Issues

Past debates over military construction priorities have centered around:

! Congressional additions to the Administration request; and

! The debate over added projects: The McCain Criteria.

Current issues in Defense committee reports and appropriation & authorization hearings and

legislation on the FY1998 military construction budget have highlighted:

! Overseas expenditures;

! Prior year savings for current year programs;

! Base Realignment and Closure (BRAC) concerns;

! Government Performance and Results Act;

! "Honest" budgets and the Future Years Defense Plan for military construction;

! Housing as important to the quality of life for Servicemembers;

! Improving the utility infrastructure of military facilities;

! Vision 21: Consolidating testing & evaluation centers and laboratories; and

! Real property maintenance reporting requirements.

Past Debates

Congressional Additions to the Administration Request. In recent years, the

Congress has added significant amounts to annual Administration military construction budget

requests. This year is no exception. For example, the Congress added $479 million in

FY1996 and $850 million in FY1997 to the military construction accounts. In appropriations

action on the FY1998 request, the House and Senate added approximately $800 million more

than the Clinton administration's request. In authorization action, the House added $750

million and the Senate added $707 million.

Congressional additions to the military construction budget have been common and

controversial throughout the 1990s. Three themes explain the pattern of reoccurring

congressional additions. First, some members of the Military Construction Subcommittees

have believed that military construction has been chronically underfunded and therefore

5

See Appropriations for FY1998: Defense, by (name redacted), CRS Report 97-205, for details

on the Quadrennial Defense Review (QDR).

additional funds are needed. This theme was echoed in the FY1998 reports from the House

Appropriation Committee and the defense authorizing committees. Second, often Congress

has different priorities than the Administration, as reflected in frequent congressional cuts to

overseas construction requests and contributions to the NATO Security Investment Program.

Third, other Members of Congress, as Senator Bond commented during the floor debate on

FY1996 military construction appropriations, believe that DOD counts on Congress to add

money to Guard and Reserve programs. In recent years, Congress has added large amounts

for National Guard and Reserve construction projects, as much as $401.8 million in FY1995.

(See Table 5.)

Debate over congressional additions to the military construction budget involves several

overlapping issues. Military construction proponents, including facility advocates in the

military services, argue that military facilities have been systematically underfunded for many

years -- even, some say, in the midst of the buildup of the early- to mid-1980s. This line of

argument was prominent during House Appropriations Committee mark-up of the FY1996

military construction bill. Some complained that the funding level was up 28% from the prior

year, while others defended the increase as simply making good previous shortfalls in funding

for new construction and maintenance. The House report on the FY1997 bill (H.Rept. 104591) cited a current DOD backlog of deferred maintenance and repair for family housing

alone that totaled over $4.5 billion dollars.

DOD facility managers have fallen below their goal to allocate 3% of the plant

replacement value of DOD facilities for annual construction and maintenance. Although this

3% goal is below the average for public facilities nationwide, actual DOD funding has

typically run at 1 to 2% of plant replacement value. Therefore, the replacement cycle for

defense facilities is 50 to 100 years and facility proponents welcome any congressional

additions.6

Finally, congressional military construction subcommittees -- authorization as well as

appropriations subcommittees -- have frequently taken issue with Administration military

construction priorities. In the early 1990s, for example, the committees frequently reduced

amounts requested for construction overseas -- on the grounds that troop levels abroad should

be reduced and that allied burden-sharing contributions should increase -- and reallocated the

funds to domestic projects. In addition, congressional committees have added unrequested

funds for quality of life improvements, such as day care centers and barracks renovation. The

Congress has argued that the military services have tended to neglect these areas in favor of

warfighting investments.

The Debate Over Added Projects: The McCain Criteria. In 1994, the Senate

debate on the military construction appropriations bill focused the amount of congressional

additions to the request despite constraints on overall defense spending. Senator McCain, in

particular, objected to the provision of substantial amounts for projects that the

Administration had not requested. He argued that such projects largely represent "pork

barrel" spending, and come at the expense of higher priority defense programs. In Senate

floor consideration of the military construction bill that year, the managers accepted a McCain

amendment that called for criteria to be applied to additional projects. His amendment

included a provision that any added project should be on the military lists of critical yet

unbudgeted projects. The McCain amendment was not incorporated into the final conference

6

For a discussion of this and related issues, see CRS Report 91-669, Military Construction:

Current Controversies and Long-Term Issues, by Martin Cohen and (name redacted).

version of the bill, however, and the conference agreement provided over $900 million for

unrequested construction projects.

The National Defense Authorization Act for FY1995 (P.L. 103-337), however,

incorporated Senator McCain's criteria as a sense of the Senate provision, providing that the

unrequested projects should be:

1. essential to the DOD's national security mission,

2. not inconsistent with the Base Realignment and Closure Act,

3. in the services' Future Years Defense Plan (see below),

4. executable in the year they are authorized and appropriated, and

5. offset by reductions in other defense accounts, through advice from the Secretary of

Defense.

The purpose of the criteria is to help the Congress rate the relative importance of

different projects. Though a sense of the Senate provision does not have the force of law, the

McCain criteria have been used in Senate authorization and appropriations debates for

FY1996 and FY1997. The criteria were also cited in the House FY1997 debates by members

of the "porkbusters" coalition. In practice, debates have focused on justifying projects

according to the first four criteria, while ignoring the offset criteria.

In debate on the FY1997 military construction appropriations, Senator McCain noted

that, since FY1990, Congress has added nearly a billion dollars a year in unrequested military

construction projects. H.R. 3517, the FY1997 military construction bill, exceeded the

Administration request by $900 million in the House version and by $700 million in the Senate

bill. During House floor debate on the FY1997 bill, Representative Minge, co-chair with

Senator McCain of a "porkbusters" coalition, conceded the House bill "largely adheres" to the

McCain criteria. He voted against the measure, however, because it exceeded the President's

request by $900 million, including $300 million for 42 projects not in the DOD's long-range

plan.

In debate on the FY1998 military construction appropriations conference report, Senator

McCain continued to point out congressional adds. He noted that the Congress added 129

projects, totalling $941 million. The National Guard and Reserve received $268 million of

the additional congressional money. Senator McCain presented the list of extra projects in the

Congressional Record, in a letter to the President and on his web page

(http://www.senate.gov/~mccain/milconf.txt).

Current Issues

Overseas Expenditures. The House National Security Committee noted in its Title

28 of its report (H.Rept. 105-132) that it believes that the current level of burdensharing with

the Korean government is insufficient given the conditions of the facilities and their

importance to security of the region. With the expiration in 1998 of the Special Measures

Agreement (SMA), the HNSC urges the Secretary of Defense to work with the Secretary of

State to improve the level of burdensharing in the follow-on agreement.

The Senate Appropriations Committee is also concerned about overseas construction.

With the likelihood of reductions in the size of the U.S. military, overseas military presence

may decrease. The SAC noted that the request of $600 million for overseas construction is

24% of the construction budget. Therefore, the committee cautioned the Pentagon to be

conservative in committing funds and consider leasing facilities or sharing with the host

nations.

The SAC also instructed the Pentagon to report by October 15 on the new funding

demands that would be made on the NATO infrastructure account because of NATO

expansion.

In the Senate debate over the Military Construction Act, Senator Murray, the ranking

member of subcommittee, mentioned instruction to the administration to execute a

burdensharing agreement with Qatar for prepositioning of equipment in southwest Asia.

Prior Year Savings for Current Year Programs. The defense authorizing

committees disallowed the practice of funding current programs with prior year savings. The

authorizers reduced military construction title by approximately $55 million -- the amount of

prior year savings budgeted for FY1998. In their report (S.Rept. 105-29), the Senate Armed

Services Committee noted that this trend started in the FY1997 budget request with $12

million of prior year savings, which escalated to $55 million of prior year savings budgeted

for FY1998 programs. DOD's use of prior year savings reinforces the committees' concern

that the Pentagon is trying to overprogram the limited amount of money budgeted for military

construction. Budgeting prior year savings in the SASC view limits the flexibility to fund cost

variations and complete projects with justifiable cost increases. The Senate and House

authorizing committees expects the DOD to fully fund future military construction requests,

without using savings.

The House Appropriations Committee objected strongly to this method of financing, but

allowed it in the this year's budget request. The Senate Appropriations Committee also

rejected the practice of prior savings for current programs in its report.

Base Realignment and Closure (BRAC) concerns. The Senate Appropriations

Committee asked the General Accounting Office to continue its annual review of the base

realignment and closure accounts to help the committee validate requests for individual

projects. The report would be due May 15, 1998.

The Senate Appropriations Committee noted that many of the housing privatization

initiatives contain various mechanisms that shift financial risk and liability to the Government.

Some of these guarantees insulate private interests against future BRAC actions, force

reductions or extended deployments. The committee commented that housing projects with

these guarantees could be an advantage to a base in future BRAC rounds. Therefore, the

committee has added a provision for the Pentagon to notify the congressional defense

committees of all privatization agreements which contain any clause providing consideration

for BRAC, force reductions and extended deployments.

Government Performance and Results Act. The House and Senate Appropriations

Committees inserted language into the Military Construction Appropriations Act report

(H.Rept. 105-150 and S.Rept. 105-52) stating that implementation of the Government

Performance and Results Act (GPRA) (P.L. 103-62) is to be a priority for all agencies of

government. Starting with FY1999, GPRA requires agencies establish performance goals and

measures. The HAC report states that they will consider these measures in the FY1999

appropriations cycle. It is likely that this report language will appear in each of the thirteen

FY1998 appropriation bills. The SAC noted that the DOD has begun to incorporate GPRA

into the Department's planning, programming and budgeting system (PPBS). (See section on

"Honest budgeting" below for more information on PPBS.)

"Honest" Budgets and the Future Years Defense Plan for Military

Construction. The Department of Defense uses a formal process called the Planning,

Programming and Budgeting System (PPBS) to create its budget for Congress.7 The PPBS

process is also used to prepare DOD's internal, long-term financial plan. The long-term plan

extends over a six-year period and is known as the Future Years Defense Plan (FYDP).

In the FY1998 hearings, the Chairman of the House Subcommittee on Military

Construction, Representative Ron Packard chastised the Department of Defense for repeatedly

failing to submit "honest" budgets reflecting real service priorities. He complained that the

military construction request traditionally leaves out necessary projects, especially for the

National Guard and Reserve, and yet the services expect Congress to add them. Mr. Packard

wanted the subcommittee to get out of the business of adding money for projects that the

administration had not requested, but yet supposedly needs. He also wanted DOD and

Services to use the Future Years Defense Plan (FYDP) rigorously to set priorities for their

construction projects and integrate Guard and Reserve needs.

In testimony on the FY1998 request to the Military Construction Subcommittee of the

House Appropriations Committee, the DOD Comptroller, John Hamre admitted that DOD

needs to undertake good detailed planning for the military construction budget and has not

done this in the past. Hamre also conceded that the DOD has not evaluated the accuracy of

the military construction FYDPs, and that he sees a need for that assessment.

In the FY1998 House Committee on Appropriations Report (H.Rept. 105-150), the

Committee supported a coherent Future Years Defense Plan (FYDP) for military construction

at the project level of detail and encouraged efforts to reconcile annual adjustments in this

plan. This report language echoed themes heard in the FY1998 hearings, which asked for

coherent planning for Guard and Reserve facility needs.

Guard and Reserve Project Additions. The Ranking Minority Member of the House

Subcommittee on Military Construction, Representative Bill Hefner stressed in the FY1998

hearings the importance of the Guard and Reserve forces in the Bosnian operation. He then

questioned whether the Guard and Reserve should have a better and more professional budget

system to reflect that role. Hamre admitted that there is history of the Guard not being able

to get projects they think are crucial for their mission into the Army's FYDP and that he is

working with the Services to get a more forthright budget including the Guard and Reserves.

DOD Comptroller Hamre agreed that if the DOD is going to honor the total force concept,

that the Pentagon needs to go a better job of building a budget that includes the Guard and

Reserves.

The House Committee on Appropriations in their report (H.Rept. 105-150) directed the

Army National Guard to report backlog facility requirements, develop a nation-wide armory

infrastructure plan and submit a Future Years Defense Plan (FYDP) with the Army National

Guard and Air National Guard military construction budget request. In contrast to the

negative opinion of the House, the Senate Appropriations Committee commended the Army

National Guard installation philosophy, but also required a FYDP plan from the Guard by

March 30, 1998.

The House National Security Committee added $154 million to the President's request

of $173 million for Guard and Reserve Forces facilities. However, the Army National Guard

received no additions from the HNSC. In their Title 26 of their report (H.Rept. 105-132), the

committee notes its concern about the instability of the Army National Guard budget and

7

For a discussion of the formulation of the defense budget proposal by the DOD, see CRS Report

93-317, A Defense Budget Primer, by Keith Berner and (name redacted).

planning process, since 60% of the projects in FY1997 plan are no longer in the immediate

FY1998 budget plan. The committee directed the Army to insure that the Army National

Guard adheres to an integrated department-wide budget and planning process.

Housing as Important to the Quality of Life for Servicemembers. Housing has

emerged as a key quality of life issue in the Pentagon and in congressional debates over

military construction. The Department of Defense has found that about two-thirds of military

housing -- both family quarters and barracks -- are substandard because of size, safety or

condition.8 The FY1998 Pentagon construction plan includes money for 5,900 new housing

units and 11,000 barracks living spaces.

In 1995, then-Defense Secretary Perry established an external advisory committee and

an in-house executive committee to look at quality of life issues. Two major housing

initiatives emanated from those committees. Private sector financing and methods for family

housing were proposed and implemented in the FY1996 Defense Authorization Act. Also, a

new standard was set for barracks, called "1 + 1". This standard provides each

servicemember at sergeant or below an individual room plus a shared bathroom with an

adjoining room.9 In their FY1998 report (H.Rept. 105-150), the House Appropriations

Committee states that it will take $14.3 billion and 20 years to reach the 1 + 1 standard.

Because of the need for better military housing, some members of Congress were critical

that the budget request reduces the family housing budget for FY1998 by 10% to $3.7 billion

compared to the FY1997 enacted amount of $4.1 billion. Representative Hefley, Chairman

of the House National Security Military Installations and Facilities Subcommittee, said he felt

"betrayed" by the reduction, since he had the understanding that the privatization concept was

to augment, not replace government funding.10 Defense officials defended their proposal,

since the Pentagon was leveraging defense dollars to build three times the amount of DODfinanced housing units.

Military Unaccompanied Housing Improvement Fund. In their FY1998 report

(H.Rept. 105-150), the House Appropriations Committee recommended no appropriation for

the DOD Military Unaccompanied Housing Improvement Fund. This is equal to the budget

request, but $5 million less than last year. The purpose of the fund is to encourage the use of

private capital to develop barracks housing more quickly, yet the no requirements were

identified for the FY1997 money by the DOD. The HAC would like the DOD to aggressively

apply these privatization authorities to modernize servicemember housing.

Housing Revitalization Support Program. Working with the Administration, the

Congress in the FY1996 Defense Authorization Act (P.L. 104-106) approved the Housing

Revitalization Support Program, which gives incentives for the private sector to provide

military housing. The incentives include guarantees of mortgage or rental payments by

military families, commercial-style lease arrangements, and joint ventures with developers of

new housing on bases.

8

Maze, Rick, "The new Congress: What's in store for you," Navy Times, January 20, 1997, p.

6.

9

Adelsberger, Bernard, "How to fix the housing crunch: Another study," Navy Times, March 4,

1996, p. 6.

10

1997.

Maze, Rick, "Officials defend cuts in housing construction funds," Army Times, March 3,

The program has had a slow start, with construction underway on only one 400-unit

project in Corpus Christi and Ingleside, Texas.11 Other bases with planned projects include

Lackland Air Force Base, Texas; Everette Naval Station, Washington; Fort Carson,

Colorado; Camp Pendleton, California; and Albany Marine Corps Logistics Base, Georgia.

There have been complex issues to work out with these new partnerships. In the Lackland Air

Force Base case, for example, the DOD and local community needed to sort out whether the

private developer would pay local taxes.

The House Appropriations Committee noted in its in its FY1998 report (H.Rept. 105150) that the Housing Revitalization Support Office (HRSO) has just completed its first year

of operations for managing the DOD's military housing privatization efforts. The HAC is

concerned with heavy use of consultants by the office, since it believes that the HRSO should

develop in-house expertise in private sector operations to effectively manage this program.

Improving the Utility Infrastructure of Military Facilities. Hearings on the

FY1998 military construction request also reflected the interest of the committees in the

potential savings from improving utility infrastructure of military facilities. The FY1998

budget has requested funds for the Energy Conservation Improvement Program, which will

fund capital projects intended to lower the energy use in military facilities. Members

expressed interest in investigating whether privatizing or outsourcing utilities and other

"underground" infrastructure (such as pipes) on bases could save money.

The House Appropriations Committee noted that in their FY1998 report (H.Rept. 105150) that infrastructure -- such as water and sewer systems, electrical systems,

communication systems and transportation systems -- do not receive sufficient priority in

military construction plans. The HAC encouraged the DOD to look at installation-wide

infrastructure projects and to program and budget for the work and to study the feasibility of

privatizing utility systems.

The Senate Armed Services Committee added Section 2802 in S. 936 to their defense

authorization act on the sale of utility systems of the military departments. The provision

authorizes the service secretaries to convey all or part of government utility systems located

on military installation to commercial or public utilities. The types of utilities that may be

conveyed include -- but are not limited to -- electrical generation and supply; water treatment;

water supply; wastewater collection and treatment; steam, hot, chilled water generation and

supply; and natural gas supply.

Vision 21: Consolidating Testing & Evaluation Centers and Laboratories. The

House Appropriations Committee expects the Vision 21 report by November 1998. This

report is the DOD's 5-year plan to consolidate and restructure all defense testing, evaluation

and labs to achieve effective intra-Service and cross-Service organizational arrangements.

The HAC directs the Secretary of Defense to certify any new activities before funds are

obligated, because of the consolidation process.

Real Property Maintenance Reporting Requirements. The House National

Security Committee limited facility repair with operations and maintenance funds through a

legislative provision (Section 2801) in H.R. 1119. The House Appropriations Committee

supported the HNSC's action and directed that the defense committees be notified before

carrying out any repair project with an estimated cost of over $10 million.

11

Jowers, Karen, "Housing tops quality-of-life list for '97," Navy Times, January 13, 1997, p. 6.

Major Funding Trends

The Administration proposed significant reductions in military construction spending for

FY1998, compared to the enacted FY1997 amount. The President's FY1998 proposal of $8.4

billion is a 16% reduction from the FY1997 $9.8 billion level approved by Congress. In

action on the FY1998 request, the House and Senate added approximately $800 million to the

request. On the authorization side, the House added $750 million. Amendments to the

defense authorization bill in the Senate added $7 million to the Senate Armed Service

Committee recommendation of a $700 million addition.

Table 2 shows overall military construction funding since FY1994, including family

housing. Table 3 breaks down the FY1998 request by appropriations account and compared

to FY1996 and FY1997. Table 4 shows congressional action on the FY1998 request. Table

5 shows congressional military construction add-ons for Guard and Reserve projects since

FY1985. Table 6 shows military construction projects targeted by the President's line item

vetoes in October 1997.

As seen in Table 2, funding for military family housing has been fairly stable in recent

years. Family housing budgets are driven by annual operating costs which do not vary

greatly. The potential of the Housing Revitalization Support Program to increase family

construction through private incentives, however, has encouraged the Defense Department to

submit a request that is 10% less than what was enacted last fiscal year. In contrast, funding

for military construction has varied more from year to year.

Legislation

H.R. 2631 (Skeen)

Referred to House Committee on Appropriations on October 7, 1997. Called up by

House under suspension of the rules and passed the House by Yea-Nay Vote: 352-64 on

November 8, 1997. Received in the Senate, read twice on November 8, 1997. Passed the

Senate without amendment by unanimous consent on November 9, 1997. Presented to the

President on November 10, 1997. Vetoed by the President November 13, 1997. Passed by

Yeas and Nays in the House (2/3 required): 347-69. Passed by Yeas and Nays in the Senate

(2/3 required): 78-20.

S. 1292 (Stevens)

Read twice and referred to the Committee on Appropriations pursuant to the order of

section 1025 of P.L. 93-344 for seven days of session. Full committee markup held October

23, 1997. Reported with an amendment to the Senate on October 23, 1997. Passed Senate

without amendment by Yea-Nay 69-30, on October 30, 1997. Senate vitiated previous

passage and indefinitely postponed by Senate by unanimous consent on November 13, 1997.

H.R. 2016 (Packard)

Full committee markup held and reported an original measure, June 24, 1997, with

H.Rept. 105-150. Measure passed the House by Yea-Nay Vote: 395-14, July 8, 1997.

Senate full committee markup held and reported the measure (as amended) on July 17, 1997,

with S.Rept. 105-52. Measure passed the Senate with amendments by Yea-Nay Vote: 98-2,

on July 22, 1997. Conferees agreed to file conference report (H.Rept. 105-247) on September

9, 1997. House agreed to conference report by Yeas and Nays: 413-12 on September 16,

1997. Senate agreed to conference report by Yea-Nay Vote: 97-3, on September 17, 1997.

Signed by the President and became P.L. 105-45 on September 30, 1997.

H.R. 1119 (Spence)

Referred to the Committee on National Security, March 19, 1997; full committee

markup held and ordered to be reported, June 11, 1997. Reported to the House by Committee

on National Security (as amended), June 16, 1997, with H.Rept. 105-132. Measure

considered in the House, June 19 - June 24, 1997. Measure passed the House, by Yea-Nay

Vote: 304-120, June 24, 1997. The Senate deleted all after the enacting clause, inserted the

provisions of S. 936 and approved H.R. 1119, July 11, 1997. Conference agreement reached

and ordered to be reported October 23, 1997; conference report filed (H. Rept. 105-340).

House agreed to conference report, by Yea-Nay Vote: 286-123, October 28, 1997. Senate

agreed to conference report by Yea-Nay Vote: 90-10, November 6, 1997. Signed by President

and became P.L. 105-85 on November 18, 1997.

S. 936 /S. 924 (Thurmond)

Committee on Armed Services ordered to be reported an original measure, June 12, 1997

(S. 924). Original measure reported to Senate by Senator Thurmond, on June 17, 1997 with

S.Rept. 105-29 (S.924). Reported to Senate from the Committee on Armed Services (without

written report) June 18, 1997 (S. 936). Report on S. 924 (S.Rept. 105-29) deemed to be filed

on S. 936. Measure considered in the Senate June 20 - July 11, 1997. Measure passed

Senate, amended, by roll call vote 94-4 on July 11, 1994. The Senate deleted all after the

enacting clause, inserted the provisions of S. 936 and approved H.R. 1119, July 11, 1997.

Table 2. Mil. Con. Appropriations, FY1994-98

(budget authority in millions of dollars)

Actual

FY1994

Actual

FY1995

Actual

FY1996

Enacted

FY1997

Request

FY1998

Enacted

FY1998

Family

Housing

3,501

3,392

4,260

4,122

3,668

3,872

Military

Construction

6,009

5,426

6,893

5,671

4,715

5,420

Revised

Economic

Assumptions

NA

NA

NA

NA

NA

-109

Total

9,510

8,818

11,153

9,793

8,383

9,183

Source: Actual FY1994-96 data and Request FY1998 data from Department of Defense, Financial Summary

Tables, February 1997 and previous years' reports. Enacted FY1997-98 data from Congressional Record,

September 16, 1997, H7317-7318.

Notes: NA = not applicable

Table 3. Mil. Con. Appropriations by Account: FY1996-98

(in thousands of dollars)

Account

FY1996

Actual

FY1997

Est.

FY1998

Request

Milcon, Army

622,429

563,660

595,277

MilCon, Navy

546,251

695,794

540,106

MilCon, Air Force

572,084

751,964

495,782

MilCon, Defense-wide

596,139

755,550

673,633

MilCon, Army National Guard

137,110

78,086

45,098

MilCon, Air National Guard

164,572

189,855

60,225

MilCon, Army Reserve

72,728

55,543

39,112

MilCon, Navy Reserve

19,055

37,579

13,921

MilCon, Air Force Reserve

36,482

52,805

14,530

BRAC Acct., Army

694,682

425,644

400,493

BRAC Acct., Navy

2,495,948

1,201,064

990,542

BRAC Acct., Air Force

512,208

584,579

612,606

BRAC Acct., Defense-wide

189,100

296,187

57,213

NATO Security Investment Program

198,500

172,000

176,300

Foreign Curr. Fluct., Constr., Def.

35,309

--

Total: Military Construction

6,892,597

5,860,310

4,714,838

Family Housing Const., Army

118,256

158,503

143,000

1,311,759

1,212,466

1,148,937

525,058

499,886

278,933

1,048,329

1,015,083

976,504

Family Housing Const. AF

294,490

318,037

253,128

Family Housing Operation & Debt, AF

829,213

816,509

830,234

Family Housing Const., Def-wide

3,772

4,371

4,950

Family Housing Operation & Debt, Def-wide

30,467

30,963

32,724

Homeowners Assist. Fund, Def.

76,168

36,181

--

DOD Family Housing Improvement Fund

22,000

25,000

--

--

5,000

--

Total: Family Housing

4,259,512

4,121,999

3,668,410

GRAND TOTAL

11,152,109

9,982,309

8,383,248

Family Housing Operation & Debt, Army

Family Housing Const., Navy & Marine Corps

Family Housing Operation & Debt, Navy and Marine

Corps

DOD Unaccompd. Housing Improvement Fund

Sources: Department of Defense, "Financial Summary Tables," February 1997.

--

Table 4. Mil. Con. Appropriations by Account - Congressional Action

(in thousands of dollars)

FY1998

Request

House

Bill

Senate Bill

Conf.

Report

Milcon, Army

595,277

721,027

652,046

714,377

MilCon, Navy

540,106

685,306

605,756

683,666

MilCon, Air Force

495,782

662,305

662,305

701,855

MilCon, Defense-wide

673,633

613,333

690,889

646,342

MilCon, Army National Guard

45,098

45,098

234,614

118,350

MilCon, Air National Guard

60,225

137,275

185,115

190,444

MilCon, Army Reserve

39,112

77,731

96,079

74,167

MilCon, Navy Reserve

13,921

40,561

21,111

47,329

MilCon, Air Force Reserve

14,530

27,143

31,830

30,243

BRAC Acct., Part II

116,754

116,754

116,754

116,754

BRAC Acct., Part III

768,702

768,702

768,702

768,702

BRAC Acct., Part IV

1,175,398

1,175,398

1,175,398

1,175,398

NATO Security Investment Program

176,300

166,300

152,600

152,600

Total: Military Construction

4,714,838

5,236,933

5,393,199

5,420,227

Family Housing Const., Army

143,000

202,131

167,100

197,300

Family Housing Operation & Maint., Army

1,148,937

1,148,937

1,149,937

1,140,568

Family Housing Const., N & MC

278,933

409,178

362,619

393,832

Family Housing Operation & Maint., N & MC

976,504

976,504

976,504

976,504

Family Housing Const. AF

253,128

341,409

296,633

295,709

Family Housing Operation & Maint., AF

830,234

830,234

830,234

830,234

Family Housing Const., Def-wide

4,950

4,950

4,950

4,950

Family Housing Operation & Debt, Def-wide

32,724

32,724

32,724

32,724

Total: Family Housing

3,668,410

3,946,067

3,820,701

3,871,821

GRAND TOTAL

8,383,248

9,183,000

9,213,900

9,292,048

Revised Economic Assumptions

NA

NA

-31,000

-108,800

Adjusted total

NA

NA

9,182,900

9,183,248

Account

Sources: Congressional record, July 8, 1997, pp. H4879-4891.; S.Rept. 105-52; H.Rept. 105-247.

Note: NA = not applicable

Table 5. Congressional Additions to Annual Department of Defense Budget Requests for National

Guard and Reserve Military Construction, FY1985-97

(current year dollars in thousands)

Fiscal Year

Army

National Air National

Guard

Guard

Army

Reserve

Naval

Reserve

Air Force

Reserve

Total

1985 Req.

88,900

102,900

70,400

60,800

67,800

390,800

1985 Enact.

98,603

111,200

69,306

60,800

67,800

407,709

1986 Req.

102,100

137,200

70,700

51,800

66,800

428,600

1986 Enact.

102,205

121,250

61,346

41,800

63,030

389,631

1987 Req.

121,100

140,000

86,700

44,500

58,900

451,200

1987 Enact.

140,879

148,925

86,700

44,500

58,900

479,904

1988 Req.

170,400

160,800

95,100

73,737

79,300

579,337

1988 Enact.

184,405

151,291

95,100

73,737

79,300

583,833

1989 Req.

138,300

147,500

79,900

48,400

58,800

472,900

1989 Enact.

229,158

158,508

85,958

60,900

70,600

605,124

1990 Req.

125,000

164,600

76,900

50,900

46,200

463,600

1990 Enact.

223,490

235,867

96,124

56,600

46,200

658,281

1991 Req.

66,678

66,500

59,300

50,200

37,700

280,378

1991 Enact.

313,224

180,560

77,426

80,307

38,600

690,117

1992 Req.

50,400

131,800

57,500

20,900

20,800

281,400

1992 Enact.

231,117

217,556

110,389

59,900

9,700

628,672

1993 Req.

46,700

173,270

31,500

37,772

52,880

342,122

1993 Enact.

214,989

305,759

42,150

15,400

29,900

608,198

1994 Req.

50,865

142,353

82,233

20,591

55,727

351,769

1994 Enact.

302,719

247,491

102,040

25,029

74,486

751,765

1995 Req.

9,929

122,770

7,910

2,355

28,190

171,154

1995 Enact.

187,500

248,591

57,193

22,748

56,958

572,990

1996 Req.

18,480

85,647

42,963

7,920

27,002

182,012

1996 Enact.

137,110

171,272

72,728

19,055

36,482

436,647

1997 Req.

7,600

75,394

48,459

10,983

51,655

194,091

1997 Enact.

78,086

189,855

55,543

37,579

52,805

413,868

Source: Department of Defense, Financial Summary Tables, successive years.

Total

Change

from

Request

+16,909

-38,969

+28,704

+4,496

+132,224

+194,681

+409,739

+347,272

+266,076

+399,996

+401,836

+254,635

+219,777

Table 6. Military Construction Projects

Targeted by Line-Item Veto, October 1997

Project

Location

Million

1. A command and control facility

Fort Irwin, Calif.

$2.7

2. A central, 24-bay wash facility for wheeled and tracked

vehicles

Fort Irwin, Calif.

$8.5

3. Two buildings and a harbor area to provide protection for

the Marine Mammal Program

Coronado Naval Amphibious

Base, Calif.

$10.1

4. A new Marine Corps Reserve Center

Pasadena, Calif.

$6.7

5. Removal of rail, turnouts and crossing and a new remote

loading facility

Fort Carson, Col.

$16

6. An increase in the number of larger berths for ships

Mayport Naval Station, Fla.

$17.9

7. Extension of one runway and the acquisition of clear zone

for another runway for training aircraft

Whiting Field, Fla.

$1.3

8. A facility to support combat search and rescue training

operations

Moody Air Force Base, Ga.

$6.8

9. A new space for the Asian-Pacific Center for Security

Studies

Fort Derussey, Hawaii.

$9.5

10. A new facility to be used for low-altitude navigation

Mountain Home Air Force

Base, Idaho.

$9.2

11. A facility for planning, briefing and critiqueing combat

crews and to direct flight operations

Mountain Home Air Force

Base, Idaho.

$3.8

12. A new maintenance, overhaul and engineering support

facility for shipboard chemical and biological warfare

detection devices

Crane Naval Surface Warfare

Center, Indiana.

$4.1

13. A new civil engineering complex to include maintenance

shops, storage and roads

Grissom Air Reserve Base,

Indiana.

$8.9

14. A new transportation complex with a vehicle operations

facility

McConnell Air Force Base,

Kansas.

$2.9

15. A vehicle maintenance shop and storage for a forward

support battalion and combat support hospital

Fort Campbell, Ky.

$9.9

16. Three control towers for a modernization of a rifle range

Fort Knox, Ky.

$7.2

17. Additional hangar space, Naval Electronic Systems

Engineering Activity

St. Inigoes, Maryland.

$2.6

18. Additions to dry and cold storage equipment and food

preparation areas

Malmstrom

Air Force Base, Montana.

$4.5

19. A larger replacement facility to support the inspection and

testing of explosive munitions

Nellis Air Force Base, Nevada.

$2

20. Repair launch facilities for missile systems

White Sands

Missile Range, New Mexico.

$6.9

21. A new theater air simulation facility

Kirtland Air Force Base, New

Mexico.

$14

22. A target range for joint rotary and fixed wing operations

Fort Drum, N.Y.

$9

23. A building to house the readiness office and combat arms

training space

Niagara Falls, N.Y.

$2.1

24. A new Military Operations on Urbanized Terrain training

complex

Fort Bragg, N.C.

$7.9

25. A new Army Reserve training facility

Oakdale, Pa.

$6

26. A new Marine Corps Reserve Training Center and aircraft

maintenance hangar to upgrade current facilities

Johnstown, Pa.

$14

27. A 48,000-square-foot battle simulation center to replace a

smaller facility for the Army National Guard at Leesburg

training site

Eastover, S.C.

$3.8

28. A new hangar, maintenance, classroom and other support

for the Army National Guard

Rapid City, S.D.

$5.2

29. An air dryer facility to replace the old one

Arnold Air Force Base, Tenn.

$9.9

30. Expansion of the ammunition supply facility

Fort Bliss, Texas.

$7.7

31. Consolidation of a B-1B squadron operations facility

Dyess Air Force Base, Texas.

$10

32. New painting facility

Laughlin Air Force Base,

Texas.

$4.8

33. A new Army Reserve Center

Camp Williams, Utah.

$12.7

34. A new air operations facility, including an air traffic

control facility, radar tower and supporting infrastructure

Norfolk Naval Air Station, Va.

$4

35. A new wharf for ship repair and demolishing two

abandoned shipbuilding facilities and two buildings

Norfolk Naval Shipyard, Va.

$19.9

36. An earth-covered magazine for storage of Tomahawk

missiles

Yorktown Naval Weapons

Station, Va.

$3.3

37. Expanded facility for several Army National Guard units

at

Camp Dawson, W.Va.

$6.8

38. An aerial port training facility to replace smaller facilities

Mitchell Air Reserve Station,

Milwaukee, Wis.

$4.2

GRAND TOTAL

Source: Associated Press, "Clinton Veto List", October 6, 1997.

$287

For Additional Reading

CRS Issue Briefs

CRS Issue Brief 96022. Defense Acquisition Reform: Status and Current Issues, by (name r

edacted).

CRS Reports

CRS Report 93-317 F. A Defense Budget Primer, by Keith Berner and (name redacted).

CRS Report 97-205 F. Appropriations for FY1998: Defense, by (name redacted).

CRS Report 97-294 F. Defense Budget for FY1998: Data Summary, by (name redacted )

and (name redacted).

CRS Report 94-515 F. Defense Burdensharing: Is Japan's Host Nation Support a Model

for Other Allies?, by (name redacted).

CRS Report 91-669 F. Military Construction: Current Controversies and Long-Term

Issues, by Martin Cohen and (name redacted).

Selected World Wide Web Site

U.S. Department of Defense, Installations Home Page

http://www.acq.osd.mil/inst

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