Appropriations for FY2002: Treasury, Postal Service, Executive Office of the President, and General Government
Congressional research reportJan 16, 2002
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Order Code RL31002
CRS Report for Congress
Received through the CRS Web
Appropriations for FY2002: Treasury, Postal
Service, Executive Office of the President, and
General Government
Updated January 16, 2002
name redacted, Coordinator
Government and Finance Division
Congressional Research Service ˜ The Library of Congress
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
bound 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.
This report is a guide to one of the 13 regular appropriations bills that Congress considers
each year. It is designed to supplement the information provided by the House and Senate
Appropriations Subcommittees on Treasury, Postal Service, and General Government. 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.
This report is updated as soon as possible after major legislative developments, especially
following legislative action in the committees and on the floor of the House and Senate.
NOTE: A Web version of this document with active links is
available to congressional staff at:
[http://www.crs.gov/products/appropriations/apppage.shtml].
Appropriations for FY2002: Treasury, Postal Service,
Executive Office of the President, and General
Government
Summary
The Treasury, Postal Service, Executive Office of the President, and General
Government FY2002 appropriation, P.L. 107-67, totals $32.4 billion. Congressional
Budget Office scorekeeping puts the totals at $32.8 billion ($15.7 billion mandatory
and $17.1 discretionary. The House passed an appropriation totaling $32.7 billion.
The Senate-passed bill would have funded the accounts at $32.8 billion. The
conference agreement would provide a 4.6% pay adjustment in January 2002 for
federal civilian employees. Several of the accounts within the bill are also receiving
funding through the Emergency Response Fund under P.L. 107-38 and P.L. 107-117.
On April 9, 2001, President George W. Bush submitted his FY2002 budget to
Congress. The budget documents show, for accounts funded through the Treasury,
Postal Service, and General Government appropriations bill, a proposed FY2002
discretionary budget authority of $16.6 billion and proposed outlays of $16.3 billion.
This represents a $1 billion increase over the FY2001 enacted estimates (estimates do
not reflect the enacted FY2001 supplemental). Realistically, the estimates which
were offered earlier in the year are no longer current. Several of the covered accounts
fund activities affected either directly by, or as a consequence of response to, the
attacks of September 11.
Accounts in the Department of the Treasury, Bureau of Alcohol, Tobacco, and
Firearms, U.S. Customs Service, U.S. Secret Service, and the General Services
Administration usually receive funding for functions related to countering terrorism.
Emergency Response Fund allocations, as provided by P.L. 107-38, the Emergency
Supplemental Appropriations Act for Recovery from and Response to Terrorist
Attacks on the United States, FY2001, have gone to accounts in the Department of
the Treasury, the Executive Office of the President and the General Services
Administration. To date, those accounts have been allocated $147.5 million from the
Emergency Response Fund. Those allocations are not included in the totals above.
Pursuant to recent negotiations, between the White House and Congress, on
new overall funding levels, the October 9 House allocation for the spending
allocations for the Treasury and General Government accounts remain at $17.022
billion. The Senate Appropriations Committee allocated $17.118 billion on October
11.
Key Policy Staff
CRS
Division
Tel.
William Krouse
DSP
7-....
Council of Economic Advisers
(name redacted)
G&F
7-....
Customs Service
William Krouse
DSP
7-....
Cuba
Mark Sullivan
FDT
7-....
Department of the Treasury
(name redacted)
G&F
7-....
Debt Management
James Bickley
G&F
7-....
Executive Office of the President
Barbara Schwemle G&F
7-....
Federal Child Care
(name redacted)
DSP
7-....
Federal Election Commission
Joseph Cantor
G&F
7-....
Federal Employee Health Care Policy
Carolyn Merck
DSP
7-....
Federal Employee Pension Policy
(name redacted)
DSP
7-....
General Services Administration
(name redacted)
G&F
7-....
Independent Agencies
Sharon Gressle
G&F
7-....
Internal Revenue Service
(name redacted)
G&F
7-....
National Archives
Harold Relyea
G&F
7-....
Office of Government Ethics
(name redacted)
G&F
7-....
Office of Personnel Management
Barbara Schwemle G&F
7-....
Olympic Games
Gary Galemore
G&F
7-....
Postal Service
(name redacted)
G&F
7-....
Presidential Salary
Sharon Gressle
G&F
7-....
Procurement Reform
(name redacted)
G&F
7-....
Secret Service
(name redacted)
G&F
7-....
Terrorism
Sharon Gressle
G&F
7-....
Area of Expertise
Name
Bureau of Alcohol, Tobacco, and Firearms
Contents
Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Rescissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Performance Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Status and Legislative History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
House Committee Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
House Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
House Consideration and Passage . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Senate Committee Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Senate Consideration and Passage . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Conferees Appointed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Conference Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Presidential Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Continuing Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Treasury and General Government Appropriations, FY2002 . . . . . . . . . . . . . . 10
Budget and Key Policy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Department of the Treasury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Bureau of Alcohol, Tobacco, and Firearms (ATF) . . . . . . . . . . . . . . 12
Customs Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Internal Revenue Service (IRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
U. S. Secret Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
U.S. Postal Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Semipostals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Shipping Day-Old Poultry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Conference Directives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Executive Office of the President and Funds Appropriated to
the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Compensation of the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
White House Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Executive Residence (White House) . . . . . . . . . . . . . . . . . . . . . . . . . 22
Special Assistance to the President (Office of the Vice President)
and Official Residence of the Vice President . . . . . . . . . . . . . . 23
Council of Economic Advisers (CEA) . . . . . . . . . . . . . . . . . . . . . . . 24
Office of Policy Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
National Security Council (NSC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Office of Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Office of Management and Budget (OMB) . . . . . . . . . . . . . . . . . . . . 25
Office of National Drug Control Policy (ONDCP) . . . . . . . . . . . . . . 25
Federal Drug Control Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Unanticipated Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Independent Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Federal Election Commission (FEC) . . . . . . . . . . . . . . . . . . . . . . . . . 27
Federal Labor Relations Authority (FLRA) . . . . . . . . . . . . . . . . . . . 28
General Services Administration (GSA) . . . . . . . . . . . . . . . . . . . . . . 28
Merit Systems Protection Board (MSPB) . . . . . . . . . . . . . . . . . . . . . 31
National Archives and Records Administration (NARA) . . . . . . . . . . 31
Office of Government Ethics (OGE) . . . . . . . . . . . . . . . . . . . . . . . . . 33
Office of Personnel Management (OPM) . . . . . . . . . . . . . . . . . . . . . 33
Office of Special Counsel (OSC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Administration General Provision Proposals . . . . . . . . . . . . . . . . . . . 37
Terrorism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Counterterrorism Activity Funding — OMB Annual Report . . . . . . . . . . . 39
Emergency Response Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Emergency Supplemental Authorized Under P.L. 107-38 . . . . . . . . . . . . . 41
Office of Homeland Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Federal Personnel Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Federal Wage System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Members of Congress, Judges, and Other Officials . . . . . . . . . . . . . 54
President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Federal Employees Health Benefits Program . . . . . . . . . . . . . . . . . . . . . . 55
Federal Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Federal Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Privacy Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
2002 Winter Olympics and Paralympics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Cuban Travel Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Major Funding Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
General Government Function (800) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Department of the Treasury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Internal Revenue Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Financial Management Service (FMS) . . . . . . . . . . . . . . . . . . . . . . . 68
Bureau of the Public Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
U.S. Mint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Bureau of Engraving and Printing . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
General Services Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Office of Personnel Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Office of Management and Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Tax Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Glossary of Budget Process Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
For Additional Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Congressional Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Other Readings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Selected World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
List of Tables
Table 1. Status of FY2002 Appropriations for the Treasury, Postal Service,
Executive Office of the President, and General Government . . . . . . . . . . . . 9
Table 2. Department of the Treasury and General Services Administration Funding
to Combat Terrorism Including Defense Against
Weapons of Mass Destruction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Table 3. Emergency Response Fund Allocations . . . . . . . . . . . . . . . . . . . . . . 44
Table 4. Emergency Supplemental Allocation Request and Enactment . . . . . . 48
Table 5. Appropriations for the Treasury, Postal Service, Executive Office
of the President, and General Government, FY1997 to FY2001 . . . . . . . 62
Table 6. Treasury, Postal Service, Executive Office of the President, and General
Government Appropriations, FY2002, by Title and Major Accounts . . . . 63
Table 7. Department of the Treasury, Postal Service, Executive Office
of the President, and General Government Appropriations . . . . . . . . . . . 64
Appropriations for FY2002: Treasury, Postal
Service, Executive Office of the President,
and General Government
Most Recent Developments
P.L. 107-67 (H.R. 2590), Department of the Treasury, Postal Service, Executive
Office of the President, and General Government Appropriations for FY2002, was
approved by the President November 12.
Congress has received several messages from the President allocating funds
from the Emergency Response Fund by P.L. 107-38, the Emergency Supplemental
Appropriations Act for Recovery from and Response to Terrorist Attacks on the
United States, FY2001. P.L. 107-38 also authorized additional emergency funding
which was enacted under P.L. 107-117, Division B, FY2002 Defense Appropriation.
Several accounts in the Treasury and General Government appropriation are
affected. (See Terrorism section of this report for more details.)
On December 28, the President signed Executive Order 13249, establishing the
federal pay schedules effective January 2002.
Introduction
The President, through the Office of Management and Budget (OMB), is
required to submit to Congress, annually, the Budget of the United States
Government. The FY2002 budget was submitted to Congress on April 9, 2001.1 In
late February 2001, the President and the Office of Management Budget released A
Blueprint for New Beginnings, A Responsible Budget for America’s Priorities.2 It
is intended to present a 10-year budget plan and provides more of an overview than
1
U.S. Office of Management and Budget, Budget of the United States Government, Fiscal
Year 2002, April 9, 2001(Washington: GPO, 2001). Hereinafter the budget documents will
be cited as FY2002 Budget with the specific document noted.
2
U.S. Executive Office of the President, Office of Management and Budget, A Blueprint for
New Beginnings, A Responsible Budget for America’s Priorities (Washington: GPO, 2001),
207 p. Available at [http://www.gpo.gov/usbudget/index.html].
CRS-1
details on specific accounts.3 In summary, the proposed budget would fund the
accounts in the Treasury and General Government appropriations legislation at $16.6
billion (discretionary).4 This is more than a $1 billion over the estimated FY2001
funding levels, not taking into consideration the supplemental funding subsequently
enacted.
Under the budget procedures, Congress adopts a concurrent resolution
establishing the congressional budget for the government and setting forth budgetary
levels for several years in the future. The House and Senate Appropriations
Committees then allocate the discretionary funding levels (302(b)) allocations to each
of the subcommittees. Those allocations are subject to change. Subsequent to the
September 11 attacks and the need for reordering funding priorities, Congress and the
White House negotiated and new allocations were developed. For accounts covered
in this bill the House allocated, on October 9, $17.022 billion and the Senate, on
October 11, allocated $17.118 billion.
With the FY2001 supplemental5 funding factored in, the total FY2001 estimated
funding for these accounts is $16.7 billion in discretionary funding. The conference
agreement would provide $17.069 billion in discretionary funding. This falls between
the House and Senate allocations.6
Appropriations for the Department of the Treasury, in addition to funding the
operations of the department, fund the work of a group of law enforcement
organizations, which include the Bureau of Alcohol, Tobacco, and Firearms; the
Customs Service; the Secret Service; the Financial Crimes Enforcement Network; and
the Federal Law Enforcement Training Center. Treasury appropriations also cover
the Internal Revenue Service, the Financial Management Service, and the Bureau of
the Public Debt.
For the most part, the U. S. Postal Service has become self-supporting. Federal
contributions are limited to payments to the Postal Service Fund to compensate for
revenues forgone (e.g., free postal service for the blind.)
Appropriations for the Executive Office of the President provide salaries and
expenses for the White House Office, operations of the residences of the President
and Vice President, and most other agencies within the Executive Office of the
President (EOP). Organizations such as the Council of Economic Advisers, the
National Security Council, the Office of Management and Budget, and the Office of
National Drug Control Policy (ONDCP) are funded through these provisions.
3
For discussion of the of the accounts in the FY2001 Treasury, Postal Service, Executive
Office of the President, and General Government appropriations, see CRS Report RL30502,
Appropriations for FY2001: Treasury, Postal Service, Executive Office of the President,
and General Government, coordinated by (name redacted).
4
FY2002 Budget, Budget, Table S-7, p. 227.
5
P.L. 107-20; July 24, 2001; 115 Stat. 155.
6
Based on data provided by the House Committee on Appropriations, Oct. 26, 2001.
CRS-2
Specific funding for drug control initiatives is appropriated for distribution to other
entities by the ONDCP.
Among the independent agencies financed through this appropriation are the
Federal Election Commission, the General Services Administration, the National
Archives and Records Administration, the Office of Personnel Management, the
Office of Special Counsel, and the United States Tax Court.
The Treasury and General Government appropriation always has at least two
titles in addition to the four covering the funding for specific agencies. These general
titles apply restrictions or “rules of the road” governmentwide and, quite often,
contain authority for defined actions. For example, each year, there is standard
language which prohibits the use of any appropriated funds for the purpose of
employing individuals who are not U.S. citizens or citizens of nations either specified
in that section of the act or on the State Department list of nations covered by
treaties; which requires that all agencies maintain drug-free workplaces; and which
authorizes the expenditure of funds appropriated under any act to be used to pay the
travel expenses of immediate family members if a federal employee serving overseas
has died or has a life-threatening illness.
Rescissions
As part of the Consolidated Appropriations Act of 2001, P.L. 106-554, there
was a .22% across-the-board rescission of FY2001 discretionary budget authority and
obligation limitations funds (section 1403, H.R. 4577/H.R. 5666).7 All accounts in
the Treasury and General Government appropriations are affected. The Office of
Management and Budget (OMB) is required to report on the implementation of the
rescission when the FY2002 budget is submitted. On January 5, 2001, the Office of
Management Budget issued guidelines to the agencies.8
The budget documents submitted to Congress April 9, 2001 provide account-byaccount details on the rescission.9 The total rescission of FY2001funds was
$1,088,962,000. The rescission amounts for the accounts discussed in this report will
be presented in the context of the account presentation below.
Performance Plans
The funding decisions for agencies are increasingly referencing the performance
plans, goals, and measures set by the agencies. Some of the general goals are
discussed below in the “General Government Function” section. Specific goals and
7
See: CRS Report RS20758, The .22 Percent Across-the-Board Cut in FY2001
Appropriations, and CRS Report RS20756, FY2001 Consolidated Appropriations Act:
Reference Guide, both by (name redacted).
8
U.S. Office of Management and Budget, Rescission of FY2001 Discretionary Budget
Authority, Bulletin No. 01-03 to the heads of executive departments and agencies, Jan. 5,
2001. [http://www.whitehouse.gov/OMB/bulletins/b01-03.html]
9
FY2002 Budget, Analytical Perspectives, pp. 337-358.
CRS-3
measures can be found in the Budget Appendix for some of the agency accounts. For
example, the Internal Revenue Service in the Department of the Treasury sets out a
substantial series of “Key Operational Measures and Performance Indicators.” These
are organized by FY2000 actual, the FY2001 Performance Plan, and the FY2002
President’s Budget.10
The FY2001 funding levels in the text and tables in this report were
provided by the House Appropriations Committee, reduced by the rescission
data found in the FY2002 budget. The FY2002 funding levels in the text and
tables are, unless otherwise noted, those provided by the House Committee on
Appropriations. These figures, rather than those found in the budget
submission, are used because they are the basis on which appropriators make
their decisions and provide the most recent updated information.
The Budget documents provided by the Office of Management and Budget
and the appropriations bills do not necessarily follow the same organization of
accounts. For example, not all of the agencies which are organizationally within
the Executive Office of the President, as found in the budget, are funded
through the Treasury, Postal Service, and General Government appropriations
legislation. Also, the FY2002 and FY2001 individual account data in this report
do not reflect scorekeeping by the Congressional Budget Office.
See the glossary for definitions of discretionary and mandatory spending.
In some instances, the mandatory levels drive up the percent of increase
represented in the appropriation. The appropriators are bound by those
entitlements under permanent law and control only the discretionary spending
levels. The data in the tables and the funding levels provided in the text, unless
otherwise noted, reflect the mandatory and discretionary funding combined.
FTE, or full-time equivalent, is a budgetary term and does not represent
the number of personnel employed by, or the number of actual positions allowed
in, a department or agency. The FTE number is calculated by dividing the total
number of staff hours worked in a given 12-month period (usually the fiscal
year) by the total number of hours in a workyear (2087). The number of onboard personnel at any given time and the total number of people working in the
organization during the course of the year are two entirely different statistical
results. Seasonal employment and part-time employment are two factors which
make the FTE and actual employment figures differ.
10
FY2002 Budget, Appendix, p. 861.
CRS-4
Status and Legislative History
Bills are introduced in the House and Senate when the Committees on
Appropriations have completed markup on the provisions. Usually the Treasury,
Postal Service, Executive Office of the President, and General Government
Subcommittees draft legislation and the accompanying reports. The full committees
use these documents as a basis for discussion and mark up. From the time legislation
is introduced, and through enactment, the status will be noted in Table 1.
Hearings. Hearings in the House subcommittee began March 21, with nine
scheduled between then and May 10.11 Hearings in the Senate began April 26, with
three additional sessions through May 17.12
House Committee Action. On July 11, 2001, the Subcommittee on
Treasury, Postal Service, and General Government, by voice vote, approved a
spending measure. The full House Committee on Appropriations, also by voice vote,
approved the measure on July 17, 2001. H.R. 2590 was introduced July 23, 2001,
accompanied by H.Rept. 107-152.13
House Rule. On July 24, the House Committee on Rules issue a special rule
(H. Res. 206) for the consideration of H.R. 2590.14 It was an open rule providing one
hour of general debate equally divided and waiving all points of order against the bill.
It provided that the amendments printed as part of the rule (one related to Olympics
funding and one related to the Department of the Treasury Expanded Access account)
would be considered as adopted. Points of order were waived against provisions of
the bill for failure to comply with rule XXI (prohibiting unauthorized or legislative
provisions in a general appropriations bill) and against amendment number 5 (affecting
travel between the United States and Cuba), if it properly offered. It provided that
the bill will be considered by paragraph and instructed the Chairman of the Committee
of the Whole to accord priority in recognition to Members who have pre-printed their
amendments in the Congressional Record.15 The rule was adopted July 25 (Roll No.
267, 293-129, H4549-53).
11
The House subcommittee’s hearing schedule
[http://www.house.gov/appropriations/hearings/hear02tp.htm].
can
be
found
at
12
can
be
found
at
The Senate subcommittee’s hearing schedule
[http://www.senate.gov/~appropriations/hearing.htm].
13
U.S. Congress, House Committee on Appropriations, Treasury, Postal Service, and
General Government Appropriations Bill, 2002, a report to accompany H.R. 2590, 107th
Cong., 1st sess., H. Rept. No. 107-152, July 23, 2001 (Washington: GPO, 2001). Referred
to hereafter as House Report.
14
H. Res. 206, H. Rept. 107-158. See [http://www.house.gov/rules/107rule2590.htm].
15
See, “Amendments,” Congressional Record, 107th Cong., 1st sess., July 24, 2001, p.
H4542.
CRS-5
House Consideration and Passage. By a vote of 334-94 (Roll No. 274),
on July 25, 2001, the House considered and passed, amended, H.R. 2590.16 The
amendments agreed to were
! an amendment offered by Rep. Istook which would consolidate appropriations
for various accounts with Title, III, the Executive Office of the President
(H4570-71),
! an amendment offered by Rep. Collins making available $14 million from the
Federal Buildings Fund for a National Archives and Records Administration
building in Georgia (H4588-89),
! an amendment offered by Rep. Traficant which would prohibit funds to any
person or entity that have been convicted of violating the Buy American Act
(H4589-90),
! an amendment offered by Rep. Barney Frank that would prohibit payments to
persons appointed to positions, for which he or she had been nominated, after
the Senate has voted not to confirm the appointment (H4590-92),
! an amendment offered by Rep. Sanders that would prohibit the release of
merchandise for which the U.S. Customs Service has a detention order on th
basis that is was made by forced or indentured child labor (H4593-94),
! an amendment offered by Rep. Flake, as a substitute to an amendment offered
by Rep. Smith, that would prohibit funding to administer the Cuban Assets
Control Regulations with respect to any travel or travel-related transaction
(Roll No. 270, 240-186, H4599-H4604, H4607), and
! the Smith amendment, as amended by the Flake amendment (H4598-H4604,
H4607). (See discussion below under “Cuban Travel Restrictions.”)
The House rejected
! an amendment offered by Rep. Inslee that would have stricken the provision
(see section 634 under general provisions discussion below) which would
clarify that the Department of the Navy is responsible for the costs of utilities
at the residence of the Vice President (Roll No. 268, 141-285, H4577-86,
H4595)
! an amendment offered by Rep. Hinchey that would have stricken the provision
(see section 635 under general provisions discussion below) which would
authorize the Secretary of the Navy to accept consumable goods for use at
official functions at the residence of the Vice President (Roll No. 269, H458688, H4595-96),
! an amendment offered by Rep. Wynn that would have prohibited funding for
any new service procurement arrangements unless competed under the
provisions of the Federal Activities Inventory Reform Act of 1998 (P.L. 105270) (H4596-98),
! an amendment offered by Rep. Rangel that would have prohibited funding to
implement, administer, or enforce the economic embargo of Cuba except for
provisions that relate to the denial of foreign tax credits or the implementation
16
“Treasury and General Government Appropriations Act, 2002,” Congressional Record,
107th Cong., 1st sess., July 25, 2001, pp. H4553-46222. Hereafter referred to as House
Passage.
CRS-6
of the Harmonized Tariff Schedule of the United States (Roll No. 271, 201227, H4604-07, H4607-08),
! an amendment by Rep. Traficant that would have prohibited bonus or incentive
payments to senior officials of the Internal Revenue Service (Roll No. 272, 24401, H4608-09, H4620-21), and
! an amendment offered by Rep. Filner that would have prohibited funding to
implement the final report of the President’s Commission to Strengthen Social
Security (Roll No. 273, 188-238, H4614-20, H4621).
Two amendments were withdrawn (Rep. Weldon (FL) prohibiting
implementation of certain proposed IRS regulations and Rep. Hastings (FL)
increasing funding for the Federal Elections Commission for updated state and local
voting systems). A point of order was sustained against a proposal to establish a
commission to oppose the privatization of Social Security (Rep. Kucinich). Also
rejected was a motion to report the bill back to the House for the purpose of striking
the enacting clause (Rep. Obey).
Senate Committee Action. On July 26, the Senate Committee on
Appropriations, by a vote of 29-0, approved a spending measure. S. 1398 was
introduced September 4, 2001, accompanied by S. Rept. 107-57.17
Senate Consideration and Passage. On September 19, the Senate, by
voice vote, passed H.R. 2590, amended.18 All offered amendments were agreed to:
! Amendment No. 1570, offered by Senators Dorgan and Campbell which would
substitute the language of S. 1398 for that of H.R. 2590, as referred by the
House (S9477),
! Amendment No. 1575, offered by Senators Dorgan and Campbell which would
make“technical amendments and further improvements” by language changes
in the National Archives account text, by adding new general provisions
sections in the General Services Administration section (striking language in
the FY2001 statute and directing deed transfer action for a specific parcel),
stipulating a portion of Federal Law Enforcement Training Center funds for
participant per diem, adding a new general provision section changing the
reporting deadline of the United States-China Security Review Commission,
changing the allocation for the Midwest HIDTA under the federal drug control
program, amending the appointing authority of the Archivist of the United
States with regard to the directors of the presidential archival depositories, by
adding a funding allocation in the U.S. Customs Service account for
developing a curriculum for the training of law enforcement dogs to combat
and respond to terrorist activities, and by adding a general provisions section
17
U.S. Congress, Senate, Committee on Appropriations, Treasury and General Government
Appropriation Bill, 2002, a report to accompany S. 1398, 107th Cong., 1st sess., S.. Rept. No.
107-57, September 4, 2001 (Washington: GPO, 2001). Referred to hereafter as Senate
Report.
18
“Treasury and General Government Appropriations Act, 2002,” Congressional Record,
107th Cong., 1st sess., Sept. 19, 2001, pp. S9470-77, S9485-86, S9489-90, and S9491-9497.
Hereafter referred to as Senate Passage.
CRS-7
reauthorizing the breast cancer research special postage stamp (S9526 (text)
and S9489-90 consideration and adoption),
! Amendment No. 1576, offered by Senators Bingaman and Domenici which
would authorize state, regional, or local transportation authorities that receive
Federal Transit Administration assistance or grants, to purchase heavy-duty
transit buses through GSA (S9491),
! Amendment No. 1578, offered by Senator Dorgan for Senator Kohl for the
purpose of improving the collection of information relating to the introduction
of foreign animal disease (S9491-92),
! Amendment No. 1577, offered by Senator Dorgan for Senator Campbell to
provide that the Postal Service may require any air carrier to accept as mail
shipments of day-old poultry and such other live animals as postal regulations
allow to be transmitted as mail matter (S9491-92),
! Amendment No. 1573, offered by Senators McConnell and Burns to authorize
the Secretary of the Treasury to issue War Bonds in support of recovery and
response efforts relating to the September 11, 2001 highjackings and attacks
on the Pentagon and the World Trade Center (S9485-86, S9493, S9526
(text)),
! Amendment No. 1574, as modified, offered by Senator Dorgan for Senator
Johnson to authorize the Secretary of the Treasury to issue Unity Bonds in
support of recovery and response efforts relating to the September 11, 2001
highjackings and attacks on the Pentagon and the World Trade Center (S948788, S9493, S9526 (text)),
! Amendment No. 1579, offered by Senator Dorgan for Senator Hollings to
designate the G. Ross Anderson, Jr. Federal Building and Courthouse in
Anderson, South Carolina (S9493),
! Amendment No. 1583, offered by Senator Dorgan for Senator Clinton, et al,
to provide that the Postal Service may issue a special commemorative postage
stamp in order to provide financial assistance to the families of emergency
relief personnel killed or permanently disabled in the line of duty in connection
with the terrorist attacks against the United States on September 11,
2001(S9494-95, S9547(text)), and
! Amendment No. 1584, offered by Senator Dorgan for Senator Hatch to
designate the state of Utah as a High Intensity Drug Trafficking Area and to
provide funding (S9495, S9547 (text)),
Conferees Appointed. On September 19, the Senate insisted on its
amendment and requested a conference with the House. Senate conferees were
named: Senators Dorgan, Mikulski, Landrieu, Reed, Byrd, Campbell, Shelby,
DeWine, and Stevens. On October 5, House conferees were named: Representatives
Istook, Wolf, Northrup, Sununu, Peterson (Pennsylvania), Tiahrt, Sweeney,
Sherwood, Young (Florida), Hoyer, Meek, Price, Rothman, Visclosky, and Obey.
Conference Agreement. On October 26, 2001 the conferees filed the report
reflecting their agreement on H.R. 2590.19 The Senate version of the bill was used as
19
U.S. Congress, House of Representatives, Making Appropriations for the Treasury
Department, the United States Postal Service, the Executive Office of the President, and
(continued...)
CRS-8
the basic vehicle for the conference. Directions to the agencies contained in the
House and Senate reports are to be fulfilled. Dates, since gone, specified in the
provisions as passed were extended to January 2, 2002. There were several funding
differences in the two versions and those are discussed below in the Budget and
Policy Issues section for the various organizations.
On October 31, 2001, the House, on a vote of 339-85 (Roll No. 413), agreed
to the conference language.20 The previous day the House had agreed that it would
be in order to consider the conference report at any time and to waive all points of
order against the conference report and its consideration.21 Following an unanimous
consent agreement providing for consideration, the Senate, on November 1, agreed
to the conference report on a vote of 83-15 (Vote No. 321).22
Presidential Action. President Bush approved P.L. 107-67 on November 12,
2001.23
Table 1. Status of FY2002 Appropriations for the Treasury,
Postal Service, Executive Office of the President, and General
Government
(See Table 7 for breakdown of accounts within bills.)
Subcommittee
Markup
House
July
11
Conf.
Report
Conference
Report Approval
Senate
House
Report
House
Passage
Senate
Report
Senate
Passage
House
Senate
Public Law
--
July 17
H.Rept.
107-152
July 25
vote:
334-97
Sept. 4
S.Rept.
107-57
Sept. 19 Oct. 26
voice H. Rept. Oct. 31
vote
107-253 339-85
Nov. 1
83-15
Nov. 12
P.L. 107-67
19
(...continued)
Certain Independent Agencies, for the Fiscal Year ending September 30, 2002, and for
Other Purposes, a conference report to accompany H.R. 2590, 107th Cong., 1st sess., H. Rept.
107-253, Oct. 26, 2001 (Washington: GPO, 2001). Referred to hereafter as Conference
Report.
20
“Conference Report on H.R. 2590, Treasury and General Government Appropriations Act,
2002,” Congressional Record, daily edition, vol. 147, Oct. 31, 2001, pp. H7536-45, H755758.
21
“Making in Order at Any time Consideration of Conference Report on H.R. 2590, Treasury
and General Government Appropriations Act of 2002," Congressional Record, daily edition,
vol. 147, Oct. 30, 2001, p. H7380.
22
“Treasury and General Government Appropriations Act, 2002 – Conference Report,”
Congressional Record, daily edition, vol. 147, Nov. 1, 2001, pp. 11329-33, S11344-45.
23
P.L. 107-67; Nov. 12, 2001; 115 Stat. 514.
CRS-9
Continuing Resolution
On September 28, 2001 the President approved P.L. 107-4424 The continuing
resolution funded unappropriated accounts through October 16. The funding is
available for programs in effect during FY2001 and funded at the rates current as of
the close of FY2001. On October 12, P.L. 107-48 (H. J. Res. 68) was signed,
extending the funding through October 23. P.L. 107-53 (H. J. Res. 69, October 22,
2001) further amended P.L. 107-44 to fund the accounts through October 31. P.L.
107-58 (October 31, H. J. Res. 70) provided funding through November 16. With
the approval of P.L. 107-67, the accounts in the Treasury and General Government
Appropriation were no longer subject to the continuing resolutions.
Treasury and General Government Appropriations,
FY2002
Budget and Key Policy Issues
Department of the Treasury
The Department of the Treasury performs four basic functions: (1) formulating,
recommending, and implementing economic, financial, tax, and fiscal policies; (2)
serving as the financial agent for the federal government; (3) enforcing federal
financial, tax, tobacco, alcoholic beverage, and gun laws; and (4) producing all
postage stamps, currency, and coinage. Viewed at its most basic level, the
department consists of two components: departmental offices and operating bureaus.
The departmental offices are responsible for the formulation and implementation of
policy and the management of the department as a whole, while the operating bureaus
carry out specific duties assigned to the department. The bureaus accounted for 98%
of Treasury Department employment and 97% of its funding in FY2001. With one
exception, the bureaus can be separated into those having financial duties and those
engaged in law enforcement. Financial duties are handled by the Comptroller of the
Currency, U.S. Mint, Bureau of Engraving and Printing, Financial Management
Service, Bureau of Public Debt, Community Development Financial Institutions Fund,
and Office of Thrift Supervision. Law enforcement is done by the Bureau of Alcohol,
Tobacco, and Firearms, U.S. Secret Service, Federal Law Enforcement Training
Center, U.S. Customs Service, Financial Crimes Enforcement Network, and Treasury
Forfeiture Fund. The sole exception to this simple dichotomy is the Internal Revenue
Service (IRS), which performs both financial functions and law enforcement through
its administration of federal tax laws.
Under P.L. 107-67, funding for Treasury operations in FY 2002 totals $15.042
billion, which is about $1 billion more than the department received in FY 2001.
Perpetuating a longstanding trend, the IRS constitutes the single largest account in
the department’s FY 2002 budget, accounting – as it did in FY 2001 – for 63% of
total enacted funding. Other major accounts are the budgets for the Customs Service
24
P.L. 107-44; Sept. 28, 2001; 115 Stat. 253; H.J. Res. 65 (107th Congress).
CRS-10
(18% of total funding), Secret Service (6%), and Bureau of Alcohol, Tobacco, and
Firearms (5%). Compared to FY 2001, the largest percentage increase in funding is
for the Financial Crimes Enforcement Network (FinCen), whose budget is 41%
greater. Large increases have also been enacted for the Customs Service (18%
greater), Secret Service (11% greater), and Treasury Department Systems and Capital
Investments Programs (11% greater). Part of the year-to-year increase in funding for
FinCen is to cover expenses related to its involvement in security planning and
operations for the 2002 Winter Olympics. Several Treasury Department accounts are
being funded at reduced levels in FY 2002 compared to FY 2001. The largest
percentage cuts are for spending on the Expanded Access to Financial Services (or
First Accounts) program (80% smaller), the Counterterrorism Fund (17% smaller),
and the Financial Management Service (17% smaller). The First Accounts program
is intended to make it easier for low- and middle-income individuals to gain access to
a variety of financial services.
The Treasury Department plays an important role in federal efforts to combat
terrorism through its statutory missions and law enforcement responsibilities.
Treasury bureaus are responsible for protecting the President; designing and
implementing security at special events like the 2002 Winter Olympics; investigating
incidents involving arson and the use of explosives and firearms; monitoring and
analyzing the financing of terrorist activities; preventing weapons of mass destruction
from entering the country; and implementing sanctions against terrorist organizations.
With one exception, however, none of the bureaus has an appropriation account
designated specifically for counterterrorism. That exception is the Counterterrorism
Fund, which is intended mainly to respond to unanticipated emergencies by covering
costs related to efforts to counter, investigate, or prosecute domestic or foreign
terrorism, and to rebuild the operational capabilities of federal offices, facilities, or
other properties damaged or destroyed as a result of terrorist incidents. The Fund can
be used only with the advance approval of the House and Senate Appropriations
Committees. While the exact size of the department’s budget for counterterrorism
in FY 2002 is unclear, it is thought to be at least $419 million (see Table 2). Please
see the section on “Terrorism” for further details on funding for counterterrorism
within the Treasury Department.
There is reason to believe that the terrorist attacks of September 11, 2001 are
resulting in expansion of the department’s involvement in counterterrorism. On
September 14, 2001, the Bush Administration announced that the Treasury
Department’s Office of Foreign Asset Control (OFAC) is leading an interagency
group devoted to disrupting fundraising by foreign terrorists. On October 25, 2001,
a multi-agency effort to investigate the financing of terrorist groups known as
Operation Green Quest was launched, and some of the agencies involved are the IRS,
Customs Service, FinCen, Secret Service, and OFAC. And on October 26, 2001,
President Bush signed the USA PATRIOT Act of 2001 (P.L. 107-56), which expands
the power of the Treasury Department to combat money laundering and investigate
suspicious foreign financial transactions. It is reasonable to expect that these efforts
and others that may arise in coming months could lead the Bush Administration to
request a significant increase in the department’s funds for counterterrorism in FY
2003.
CRS-11
Bureau of Alcohol, Tobacco, and Firearms (ATF). The ATF is a law
enforcement agency that regulates the manufacture, importation, and distribution of
alcohol, tobacco, firearms, and explosives. The ATF also enforces federal laws
related to arson. ATF’s mission is focused on three goals: (1) reducing crime, (2)
collecting revenue, and (3) protecting the public. Among ATF’s activities, the
regulation and enforcement of laws related to firearms commerce and possession have
been the most controversial.25 In FY1999, ATF collected $12,135,929,000 in taxes,
penalties, fines, and other related revenues. From FY1992 to FY2000, Congress
increased ATF’s direct appropriations from $336,040,000 to $604,573,000, an 80%
increase. For FY2001, Congress appropriated $771,143,00026 in direct funding for
ATF, a 28% increase over the agency’s FY2000 appropriation. The FY2001
appropriation supports 4,642 full time equivalent positions.27
For FY2002, Congress has provided ATF with $823,316,000, a 6.8% increase
over the agency’s FY2001 appropriation. This amount, $19,795,000 more than the
Administration’s request, includes the following budget increases: (1) $9,655,000 for
non-pay inflation costs, (2) $3,140,000 for pay adjustments, (3) $500,000 to improve
licensing and regulatory operations, (4) $3,000,000 to expand the Integrated Violence
Reduction Strategy, and (5) $3,500,000 to upgrade the National Tracing Center.
By comparison, the Senate-passed measure would have provided ATF with
$821,421,000, a 6.5% increase over the agency’s FY2001 appropriation. This
amount, $17,900,000 more than the Administration’s request, included the following
budget increases: (1) $6,400,000 for non-pay inflation costs, (2) $2,000,000 to
support the National Integrated Ballistics Information Network, (3) $5,000,000 to
bolster the Integrated Violence Reduction Strategy, (4) $3,500,000 to retrofit and
upgrade the National Tracing Center facilities, and (5) $1,000,000 for unspecified
purposes.
Meanwhile, the House-passed measure would have provided ATF with
$824,199,000, a 6.9% increase over the agency’s FY2001 appropriation. This
amount, $20,678,000 more than the Administration’s request, included the following
budget increases: (1) $9,655,000 for non-pay inflation costs, (2) $10,523,000 for
security at the 2002 Winter Olympics, and (3) $500,000 to improve recordkeeping at
the National Firearms Act Branch, the Imports Branch, and the National Licensing
Center. Moreover, the House measure would have fully funded last year’s budget
enhancements for the Integrated Violence Reduction Strategy ($73,500,000), the
25
For further information on gun control-related legislation and issues, see CRS Issue Brief
IB10071, Gun Control Legislation in the 107th Congress, by William Krouse.
26
This amount reflects the 0.22% across-the-board rescission required by the Consolidated
Appropriations Act of FY2001 (P.L. 106-554).
27
One full time equivalent is equal to 2,080 hours worth of funding, or the amount of funding
necessary to fund one position over the course of a single year. Usually, newly funded
positions are only funded at one-half a full time equivalent, since those positions will not be
filled for the entire year, and hiring will occur incrementally over the course of that year.
CRS-12
Youth Crime Gun Interdiction Initiative ($85,000,000), and for the National
Integrated Ballistics Information Network ($25,200,000).28
The Administration’s FY2002 budget request included $803,521,000 for ATF,
a 4.2% increase over the agency’s FY2001 appropriation. The Administration’s
request anticipated reductions in non-recurring costs and other savings in the base
budget of $19,968,000 that would have partially offset increases to the agency’s base
budget of $52,346,000, which would have supported 340 additional full time
equivalents needed to fully fund positions that were newly authorized and partially
funded in FY2001. According to the Administration, this increase would have
brought the agency’s overall FY2002 full time equivalent level up to 4,982, would
have met the agency’s FY2002 baseline funding requirements, and would have
allowed ATF to maintain it’s FY2001 anticipated level of services and activities in
FY2002. As earmarks for non-pay inflation costs and pay adjustments in the
conference report language indicate, these reductions in non-recurring costs
anticipated in the President’s budget were not included in the conference agreement.
In A Blueprint for New Beginnings, the Bush Administration singled out the
Youth Crime Gun Interdiction Initiative (YCGII) as one of Treasury’s law
enforcement bureaus’ best practices. To expand the YCGII to 12 additional cities in
FY2001, Congress provided ATF with $19,078,000 to hire 72 agents and 98
inspectors. This increase brings total funding for this program to $76,400,000 and
will be used to expand its presence to 50 cities. The objective of the YCGII is to
reduce youth firearm violence and firearms trafficking among youth by making federal
resources, such as ATF’s firearms tracing and ballistics technology, available to state
and local law enforcement agencies, and by providing coordination of these efforts.
As described above, the House-passed measure would have brought total funding for
YCGII to $85,000,000 in FY2002. The Senate-reported measure would have
increased total funding for this program by $5,000,000. While the conference
agreement report language was silent on increases for YCGII, it stated that the Gang
Resistance Education and Training program would remain funded at $13,000,000, as
proposed by the Senate.
Customs Service. The U.S. Customs Service, the federal government’s
oldest revenue collecting agency, is responsible for regulating the movement of
persons, carriers, merchandise, and commodities between the United States and other
countries.29 In FY1999, Customs collected $22,405,800,000 in trade-related duties,
taxes, and fees. From FY1992 to FY2000, Congress has increased direct
appropriations for the U.S. Customs Service from $1,454,337,000 to $1,935,915,000,
a 33% increase. In addition to appropriated funding, the Customs Service collects
COBRA fee receipts that are available to the agency for expenditure ($298,592,461
28
For further information on ballistics imaging and crime gun tracing, see CRS Report
RL31040, National Integrated Ballistics Information Network (NIBIN) for Law
Enforcement, by William C. Boesman and (name redacted).
29
U.S. Customs Service Authorization, FY2002 Budget, and Related Border
Management Issues, CRS Report RL31230, by (name redacted).
CRS-13
in FY2000). For FY2001, Congress appropriated $2,279,308,00030, supporting
17,479 full time equivalent positions. This amount represents an 18% increase over
the agency’s FY2000 appropriation. Additionally, COBRA fees and other offsetting
receipts are anticipated to support an additional 1,988 full time equivalents in
FY2001, bringing the agency’s overall level of full time equivalents to 19,467.
For FY2002, Congress has provided the U.S. Customs Service with
$2,688,049,000, a 17.9% increase over the agency’s FY2001 appropriation. This
amount includes (1) $2,079,357,000 for the salaries and expenses account, (2)
$177,860,000 for the air and marine interdiction account, (3) $427,832,00 for the
automation modernization account, and (4) $3,000,000 for the harbor maintenance
fee account.
By comparison, the Senate-passed measure would have provided Customs with
$2,555,922,000, a 12.1% increase over the agency’s FY2001 appropriation. This
amount included (1) $2,022,453,000 for the salaries and expenses account, (2)
$172,637,000 for the air and marine interdiction account, (3) $357,832,000 for the
automation modernization account, and (4) $3,000,000 for the harbor maintenance
fee account.
Meanwhile, the House-passed measure would have provided Customs with
$2,673,848,000 in total funding, a 17.3% increase over the agency’s FY2001
appropriation. This amount included (1) $2,059,170,000 for the salaries and expenses
account, (2) $183,853,000 for the air and marine interdiction account, (3)
$427,832,000 for the automation modernization account, and (4) $2,993,000 from
the harbor maintenance fee account. In addition, the House adopted a Customsrelated amendment offered by Representative Bernard Sander that would prohibit the
use of any funding provided by the FY2002 Treasury-Postal appropriations act from
being used to remove detention orders placed on imports by the Customs Service,
because the agency determined that these imported products were mined, produced,
or manufactured by forced or indentured child labor.
By contrast, the Administration’s FY2002 request included $2,385,233,000 for
the Customs Service, a 4.6% increase over the agency’s FY2001 appropriation. This
amount included: (1) $1,961,764,000 for the salaries and expenses account, (2)
$162,637,000 for the air and marine interdiction account, (3) $257,832,000 for the
automation modernization account, and (4) $3,000,000 from the harbor maintenance
fee account.
For salaries and expenses, the Administration’s request anticipated $59,101,000
in reductions to the base budget in non-recurring costs and other savings that would
have partially offset an increase of $142,308,000 over the base budget. This increase,
according to the Administration, would have fully funded positions that were newly
30
This amount reflects the 0.22% across-the-board rescission required by the Consolidated
Appropriations Act of FY2001 (P.L. 106-554). It also includes monies appropriated into four
accounts: 1) $1,878,557,000 in salaries and expenses account, 2) $139,919,000 in air and
marine interdiction program account, 3) $257,832,000 in automation modernization account,
and 4) $3,000,000 in the harbor maintenance fee account.
CRS-14
authorized and partially funded in FY2001, would have supported an additional 370
full time equivalents, and would have brought the agency’s overall FY2002 full time
equivalent level supported by direct funding to 17,849. According to the
Administration, this increase would have met the agency’s FY2002 baseline funding
requirements and allowed Customs to maintain it’s FY2001 anticipated level of
services and activities in FY2002. Additionally, the Administration’s request
anticipated that offsetting receipts would fund another 1,808 full time equivalents in
FY2002, bringing the total anticipated full time equivalent level to 19,657. As
earmarks for non-pay inflation costs and pay adjustments in the conference report
language indicate, these reductions in non-recurring costs anticipated in the
President’s budget were not included in the conference agreement.
For the salaries and expenses account, Congress has provided $117,593,000
more than the Administration’s request. Conference report language includes the
following earmarks: (1) $33,476,000 for non-pay inflation costs, (2) $9,247,000 for
pay adjustment costs, (3) $33,151,000 for non-obtrusive inspection technology, (4)
$28,152,000 for a northern border hiring initiative, and (5) $13,567 for other assorted
purposes. The Senate-reported measure included $60,689,000 more than the
Administration’s request, and included the following budget increases: (1)
$20,216,000 for non-pay inflation costs, (2) $25,000,000 for additional staffing on the
northern border, (3) $5,000,000 for child labor efforts, (4) $5,000,000 for an
intellectual property law center, and (5) $5,473,000 for various other projects. The
House-passed measure included $97,406,000 more than the Administration’s request,
and included the following budget increases: (1) $33,476,000 for non-pay inflation
costs, (2) $13,81300 for security at the 2002 Winter Olympics, (3) $30,000,000 for
non-intrusive inspection technology, (4) $15,000,000 for additional positions to cover
decreases in offsetting fee receipts (COBRA), (5) $3,000,000 to field Pulsed Fast
Neutron Analysis inspection technology, (6), $800,000 for anti-tobacco smuggling
efforts, and (7) $1,317,000 to assist African nations in trade compliance under the
African Growth and Opportunity Act.
For the air and marine interdiction program account, Congress has provided
Customs with $177,860,000, a 33.8% increase over the account’s FY2001
appropriation. This amount is $15,223,000 over the Administration’s FY2002
request. By comparison, the Senate-reported measure would have provided
$10,000,000 more, and the House-passed measure $21,216,000 more than the
Administration’s request to fund non-pay inflation costs and other program
investments.
For the automation modernization account, Congress has provided Customs with
$427,832,000, the same amount as in the House-passed bill. This amount is
$170,000,000 more than the Administration’s FY2002 request of $257,832,000,
which was the amount appropriated by Congress for FY2001 ($5,400,000 for the
International Trade Data System, and not less than $130,000,000 for the continued
development of the Automated Commercial Environment). For FY2002, the Senate
measure would have provided $100,000,000 more than the Administration’s request.
As anticipated in the Administration’s request, the conference agreement would
provide Customs with $3,000,000 in offsetting receipts in the harbor maintenance fee
account. The Senate measure would have appropriated the same amount, while the
CRS-15
House-passed measure would have appropriated $2,993,000 in offsetting receipts for
obligation under this account.
In recent years, Customs’ Automated Commercial System (ACS), the system
Customs uses to track, control, and process all commercial goods imported into the
United States, has proven inadequate and has suffered from “brownouts” that inhibit
international commerce. The General Accounting Office (GAO) has testified that the
current import processes handled by ACS are “paper-intensive, error-prone, and
transaction based, and out of step with just-in-time inventory practices of the trade
community.”31 Since 1994, Congress has increased funding for Customs to upgrade
ACS and continue development of its replacement, the Automated Commercial
Environment (ACE), but Customs has struggled with the upkeep of ACS and the
development of ACE.
In the FY2000 conference report, Congress directed Customs to provide a
revised blueprint, schedule, and budget for ACE. This report was delivered to the
Appropriations committees, but late in the fiscal year. For FY2001, Congress
provided over $257,832,000 in a direct appropriation, which includes $5,400,000 to
continue the development of the International Trade Data System and at least
$130,000,000 to continue the development of ACE. It was reported in Government
Executive magazine that the development, operation, and maintenance of ACE over
7 years will cost between $1.4 and $1.8 billion, and that Customs would begin taking
bids to develop the new system in FY2001.32 The Senate-reported measure would
have brought total FY2002 funding for ACE to $230,000,000, whereas the Housepassed measure would have brought the total funding to $300,000,000. The
conference agreement matches the House amount.
In addition to appropriated funding, Customs generates offsetting receipts from
two user fee programs. The first fee program consists of seven conveyance- and
passenger-related user fees established by the 1985 Consolidated Omnibus Budget
Reconciliation Act (COBRA) and the user fee for processing bulk cargo from Mexico
and Canada established by the 1986 Tax Reform Act. The second fee program
consists of the commerce-related merchandise processing fee (MPF) established by
the 1986 Omnibus Budget Reconciliation Act (OBRA). Customs generally has no
control over the allocation of MPF fee receipts. COBRA fee receipts, on the other
hand, are not appropriated for obligation by Congress, and they account for a
substantial portion of funding available to Customs for expenditure each year. From
FY1992 to FY1999, COBRA fee receipts have ranged from about $176,000,000 to
$274,000,000.
There are codified limitations on the use of COBRA fee receipts, and initially
they were used principally to pay overtime costs for inspectors and canine
31
U.S. General Accounting Office, Testimony before the House Committee on Government
Reform Subcommittee on Government Management, Information and Technology, U.S.
Customs Service: Observations on Selected Operations and Program Issues, TGGD/AIMD-00-150 (Washington, April 20, 2000), p. 7.
32
Joshua Dean, “Funding Battles Delay Customs Modernization Project,” Government
Executive Daily Briefing, (Washington, December 1, 2000), at [http://www.govexec.com/].
CRS-16
enforcement officers. Surplus revenues could be and were carried over from one year
to the next. Such carryover has been used to fund recurring costs in positions and
equipment from previous years. As a result, COBRA fee receipts have funded an
increasing share of permanent inspector positions and information technology costs.
In FY2000, however, there were reports of a drop-off in air passenger processing fee
receipts. Consequently, the growing reliance on COBRA fee receipts to fund base
positions in conjunction with a drop-off in receipts may prove problematic in FY2001,
as Customs may not have allocated enough to pay overtime for Customs officers. To
address the decline in COBRA fee receipts, the House-passed measure would provide
$15,000,000 for additional positions. The conference agreement was silent on this
issue. The authorization for the COBRA fees expires at the end of FY2003.
Internal Revenue Service (IRS).
The federal government levies individual
and corporate income taxes, social insurance taxes, excise taxes, estate and gift taxes,
customs duties, and other miscellaneous taxes and fees. The federal agency mainly
responsible for administering these taxes and fees is the IRS. In carrying out that
responsibility, it receives and processes tax returns and other related documents,
processes payments and refunds, enforces compliance through audits and other
methods, collects delinquent taxes, and provides a variety of services to taxpayers in
an effort to help them understand their responsibilities and resolve problems. In FY
2000, the IRS collected $2,077 billion, the largest component of which was individual
income tax revenue of $1,117 billion.
Under P.L. 107-67, the IRS is funded at $9.437 billion in FY 2002, or $548
million more than it received in FY 2001. With this increase, the agency has the
authority to add 600 individuals to its staff in FY 2002. Of the total amount
appropriated, $3.798 billion is for tax processing, assistance, and management; $3.538
billion for tax law enforcement; $1.563 billion for information systems; and $146
million for the earned income tax compliance initiative. In addition, the IRS is
receiving $391.6 million for its Information Technology Investment Account (ITIA)
through September 30, 2004. Funds can be drawn from the account only with the
prior approval of the House and Senate Appropriations Committee, and they are
allocated on a project or milestone basis. In June 2001, the committees authorized
the release of $128 million from the ITIA to enable the IRS to continue its program
to modernize its information system. No additional money is being provided for the
Staffing Tax Administration for Balance and Equity initiative (STABLE) in FY 2002,
however, contrary to the wishes of the Bush Administration. STABLE is intended
to improve the IRS’s customer service and bolster its capability to enforce federal tax
laws; Congress approved initial funding for the initiative in FY 2001. P.L. 107-67
also gives the Treasury Inspector General for Tax Administration $123.7 million in
FY 2002. It specifies that $500,000 of this amount is to be used for bimonthly audits
of IRS taxpayer assistance centers.
P.L. 107-67 directs the IRS to improve its customer service by increasing its
staffing of its toll-free help-line service, and to take steps to further safeguard the
confidentiality of taxpayer information. Moreover, it expresses concern about the
ability of the IRS to coordinate and integrate its spending on business system
modernization projects with its “development-related” investments in information
systems.
CRS-17
The IRS has already completed its budget request for FY 2003 and submitted
it to the Office of Management and Budget for review. Reportedly, the agency is
seeking an increase in funding of $800 million over FY 2002 and the authority to hire
another 1,800 staff. These additional resources would be channeled into improving
customer service, modernizing information systems, and bolstering taxpayer audits
and other compliance efforts. A key player in the IRS appropriations process is the
IRS Oversight Board. The Board is required by law to review the IRS budget and
make its own recommendations directly to Congress. Based on the Board’s
recommendations for the FY 2002 budget, some expect the Board to back the
agency’s request for increased funding in FY 2003 and to request that Congress
approve two years of funding for the ITIA.
U. S. Secret Service. The U.S. Secret Service is mandated by statute to carry
out two distinct missions: the protection of designated government officials and
individuals, and criminal investigations. It is also responsible for the enforcement of
laws relating to counterfeiting.
Under P.L. 107-67, the Secret Service is funded at $920,615,000. The
conference agreement increased the salaries and expenses account by over $4 million
beyond the higher of the two versions with the other Secret Service account being
funded at the higher of the two, the House-passed version of $3,457,000. The House
had approved an appropriation of $923,569,000 for the Secret Service. As passed by
the Senate, $902,967,000 would have been appropriated for the Secret Service, with
$899,615,000 provided for salaries and expenses, and $3,352,000 available for repair
and construction of facilities. The conference report explains the funding by stating
that
This includes the costs of non-pay inflation and the anticipated pay adjustment.
The conferees also provide $1,633,000 for forensic support to the National Center
for Missing and Exploited Children (NCMEC), and $3,009,000 for grants to
NCMEC.33
No further explanation for the increase is offered. Under the emergency supplemental
the Service would be allocated further funding. See the section on terrorism below.
On July 17, the House Committee on Appropriations approved an appropriation
of $947,234,000 for the Secret Service. This is an increase of $118,892,000 over
FY2001 enacted and $86,660,000 over the President’s request. The House
subcommittee had recommended an appropriation of $943,777,000, an increase of
$118,891,749 above the FY2001 enacted level and an increase of $86,660,000 above
the President’s request. The increase included $13,624,000 for non-pay inflation;
$27,530,000 for security planning and operations for the 2002 Winter Olympics;
$45,000,000 to complete the staffing re-balancing initiative, and $506,000 in
additional support for the National Center for Missing and Exploited Children.
For FY2002, the President has requested $857,117,000 for salaries and expenses
related to protective functions, research and development, and the purchase of
33
Conference Report, p. 57.
CRS-18
vehicles. Total increases of $56,228,000 are offset by $23,996,000 in reductions,
resulting in a net increase of $32,232,000 over the FY2001 funding level of
$824,885,000. Of the FY2002 budget request, $1,633,000 is for activities related to
the investigations of exploited children; and $3,352,000 is for acquisition and
construction costs.
P.L. 106-554 funded the Secret Service salaries and expenses account at $823.8
million in FY2001. The acquisitions, construction, and related expenses account
funded at $8.9 million. P.L. 106-346 provided supplemental funding of $2.9 million
for the salaries and expenses account. The rescission reduced Secret Service funding
by $1.853 million.
U.S. Postal Service
The U.S. Postal Service (USPS) generates nearly all of its funding through the
sale of products and services. It does receive an appropriation from Congress,
however, to compensate for revenue forgone in providing free and reduced rate mail
for the blind and visually impaired and for overseas voting. Under the Revenue
Forgone Reform Act of 1993, Congress is required to reimburse USPS $29 million
each year until 2035, for services performed but not paid for in the 1990s. (See also,
CRS Report RS21025, The Postal Revenue Forgone Appropriations: Overview and
Current Issues.)
In FY2001, USPS received an appropriation of $96.093 million, including
$67.093 million for revenue forgone in FY2001 but not payable until October 1,
2002, and the $29 million due under the Revenue Forgone Reform Act of 1993.
P.L. 107-67 maintains the advance appropriation practice, with $29,000,000 in
current funding, $67,093,000 in FY2002 advance funding, and $47,619,000 in
FY2003 advance funding. This reflects the House-passed version. The Senate, on
the other hand, acceded to the Administration’s request with regard to advance
appropriations. All of the $143.7 million the Senate approved on September 19
would be available to the Postal Service in FY2002. The conference committee
adopted the House provision, making $47,619,000 of the appropriation unavailable
for obligation until October 1, 2002.
In its FY2002 Budget, the Administration proposed to reverse the practice of
providing USPS advance appropriations to avoid annual spending limitations. It
proposed an appropriation of $56.303 million for revenue forgone in fiscal 2002, and
$29 million for the FY2002 installment under the Revenue Forgone Reform Act of
1993, reduced by $8.684 million as a reconciliation adjustment to reflect actual versus
estimated free mail volume in 1999, for a total of $76.729 million. USPS will also
have available for obligation the $67.093 million provided for revenue forgone in
fiscal 2001, for a total of $143.7 million.
The Postal Service has experienced a significant rise in costs subsequent to the
September 11, 2001 attacks and the continuing crisis involving anthrax exposure. The
Postmaster General told both House and Senate oversight committees that several
billions of dollars will be necessary for crisis response and to install devices designed
CRS-19
to decontaminate mail. 34 On November 5, 2001, the Administration notified
Congress that , under the provisions of P.L. 107-38, $175 million would be allocated
to the Postal Service from the Emergency Response Fund as of November 20.35
These resources include: $100 million for an initial purchase of irradiation equipment
to sanitize the mail; and $75 million for the costs of personnel protection equipment
(e.g., gloves, masks, barrier creams), first response/environment testing kits and
services, site clean-up and medical goods and services, and public education materials.
The Senate Committee on Appropriations recently heard from the Postmaster General
as to the perceived financial needs of the Postal Service.36 P.L. 107-117 appropriates
an additional $500 to the U.S. Postal Service. See Table 4, below, for more detailed
explanations.
Semipostals.37 P.L. 107-67 has three new provisions affecting the issuance
of semipostal stamps and bypassing the selection procedure set forth in the Semipostal
Authorization Act of 2000. (Semipostals enable postal customers to pay a surcharge
over regular postage for the benefit of a worthy cause.) (See also CRS Report
RS20921, Semipostal Stamps: Authorization, Revenue, and Selection Criteria.) The
Senate had added an amendment that would extend the Breast Cancer Research
Stamp beyond its current expiration date of July 29, 2002, to July 29, 2008. It also
would exempt the breast cancer stamp from the USPS regulation issued under the
authority of the Semipostal Authorization Act that had limited the circulation of
semipostals to one at any one time. The conferees agreed to an extension, but only to
December 31, 2003 (section 650).
The Senate also had added language, that was included in the conference report
(section 652), authorizing another semipostal to assist the families of rescue workers
killed or disabled in the September 11 terrorist attacks. USPS already had underway
a selection process for a semipostal to replace the breast cancer stamp, and the
amendment would permit USPS to designate the “Heroes” stamp as the one to be
issued, or to issue it as a third semipostal in circulation.
Finally, the conference added language (Section 653) authorizing a semipostal
to be issued before 2004, and to be in circulation no later than December 31, 2006,
for the benefit of domestic violence programs administered by the Department of
34
Hearings before the House Committee on Government Reform on Oct. 30 and before Senate
Committee on Governmental Affairs on Oct. 30 and 31, 2001. Postmaster General’s prepared
statement can be accessed through http://www.senate.gov/~gov_affairs/hearings.htm. For
selected press accounts related to the USPS situations see Government Executive Magazine
Daily Briefing, Oct. 31, 2001 and Oct. 29, 2001:
http://www.govexec.com/dailyfed/1001/103101w1.htm and
http://www.govexec.com/dailyfed/1001/102901w1.htm
35
Communication from the Office of Management and Budget, with a cover letter from
President George Bush to the Speaker of the House of Representatives, dated Nov. 5, 2001
(Estimate No. 21), as required under P.L. 107-38.
36
“USPS Seen Requesting at Least $5 Billion,” Washington Post, Nov. 7, 2001, p. A27.
37
Conference Report, pp. 44-46, 73.
CRS-20
Health and Human Services. Domestic violence was one of the 37 subjects nominated
for a semipostal under the Semipostal Authorization Act.
Shipping Day-Old Poultry. The conferees also accepted (section 651) a
Senate provision authorizing USPS to require any contract air carrier to accept dayold poultry and a few other live animals as mail, and to charge mailers a reasonable
surcharge to cover the extra costs involved. The amendment will not affect air
carriers that do not normally accept live animals as cargo, a category that includes its
new transportation partner FedEx.
Conference Directives.38 Noting that the state of Hawaii has only one mail
sorting facility, the H.R. 2590 conferees urged the Postal Service “to develop a
procedure by which mail that originates on the same island to which it is addressed
can be kept and sorted on that island.” Intra-island mail deliveries had been disrupted
by the flights delayed after the September 11 attack. The conferees agreed to direct
the U.S. Postal Service to conduct a 90-day study on the feasibility of the USPS “to
introduce and provide new products and services (including the introduction and
provision of new products and services on an experimental or market test basis) and
to enter into negotiated service agreements with individual customers or groups of
customers.”
Executive Office of the President and Funds Appropriated to
the President
The Treasury and General Government appropriations act funds all but three
offices in the Executive Office of the President (EOP). Of the three exceptions, the
Council on Environmental Quality (including Office of Environmental Quality) and
the Office of Science and Technology Policy are funded under the Veterans Affairs,
Housing and Urban Development, and Independent Agencies appropriations; and the
Office of the United States Trade Representative is funded under the Commerce,
Justice, State, and the Judiciary and Related Agencies appropriations. Funding for
these agencies is not included in this report.
P.L. 107-67 provides an appropriation of $747,531,000 for EOP agencies funded
under the Treasury and General Government appropriations.
The President’s FY2002 budget proposed an appropriation of $731,725,000, an
increase of 4.26% over the $701,815,000 (less a $575,000 rescission) appropriated
in FY2001.
The House of Representatives passed EOP funding of $751,967,000, an increase
of $50,727,000 over FY2001 enacted (including the rescission) and $20,242,000 over
the President’s request. An amendment, agreed to by the House by voice vote, would
have consolidated 10 of the 18 appropriations accounts into one account, arguably to
provide the President with more flexibility in allocating funding. During the floor
debate, the chairman and ranking member of the House Appropriations Committee
noted that this provision was being accepted as a placeholder for further discussion
38
Conference Report, p. 59.
CRS-21
in conference.39 The conference committee agreed to continue with separate accounts
rather than a consolidated account.
The Senate passed, EOP funding of $755,519,000, an increase of $54,279,000
over FY2001 enacted (including the rescission) and $23,794,000 over the President’s
request.
During his September 20, 2001 speech before a joint session of Congress on the
September 11, 2001 terrorist attacks on America, President George W. Bush
announced that he was creating the Office of Homeland Security as a Cabinet-level
position reporting directly to him. For a brief discussion of the position and office,
see the “Terrorism” section below. More funding details will be provided as they are
available. That section also discusses funds provided to EOP accounts through
allocations from the Emergency Response Fund.
Compensation of the President. P.L. 107-67 provides an appropriation
of $450,000, which includes an expense allowance of $50,000. The request is a
15.4% increase over the $390,000 appropriated in FY2001. The salary of the
President is $400,000 per annum, effective January 20, 2001. This was the amount
proposed by the President’s budget, recommended by the House and Senate
committees, passed by the House and Senate, and agreed to by the conference
committee.
White House Office. This account provides the President with staff
assistance and administrative services.
P.L. 107-67 provides an appropriation of $54,651,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $54,165,000, an increase of 1.6% over the $53,288,000 (less a $118,000
rescission) appropriated in FY2001. The Senate committee recommended and the
Senate passed the same amount as the President requested.
Executive Residence (White House). This account provides for the care,
maintenance, and operation of the Executive Residence.
P.L. 107-67 provides an appropriation of $11,695,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $11,914,000, an increase of 9.3% over the $10,900,000 (less a $24,000 rescission)
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.
For repairs and restoration at the White House, P.L. 107-67 provides an
appropriation of $8,625,000. This was the amount requested by the President, and
was an increase of 791% over the $968,000 (less a $2,000 rescission) appropriated
in FY2001. Of the total, $1,306,000, is for six projects for required maintenance,
safety and health issues, and $7,319,000 is for three projects for required maintenance
39
House Passage, pp. H4570-4571.
CRS-22
and continued preventive maintenance in conjunction with the General Services
Administration, the Secret Service, the Office of the President, and other agencies
involved with the White House. The House and Senate committees recommended
and the House and Senate passed this amount as well.
Maintenance and repair costs for the White House are also funded by the
National Park Service as part of that agency’s responsibility for national monuments.
Entertainment costs for state functions are funded by the Department of State.
Reimbursable political events in the Executive Residence are to be paid for in advance
by the sponsor, and all such advance payments are to be credited to a Reimbursable
Expenses account. The political party of the President is to deposit $25,000 to be
available for expenses relating to reimbursable political events during the fiscal year.
Reimbursements are to be separately accounted for and the sponsoring organizations
billed, and charged interest, as appropriate. The staff of the Executive Residence
must report to the Committees on Appropriations, after the close of each fiscal year,
and maintain a tracking system on the reimbursable expenses.
Special Assistance to the President (Office of the Vice President)
and Official Residence of the Vice President. This account funds the Vice
President in carrying out the responsibilities assigned to him by the President and by
law. It also provides for the care and operation of the Vice President’s official
residence and includes the operation of a gift fund for the residence.
P.L. 107-67 provides an appropriation of $3,925,000 for salaries and expenses.
This was the amount recommended by the House committee, passed by the House,
and agreed to by the conference committee. The President’s FY2002 budget
proposed an appropriation of $3,896,000, an increase of 6.1% over the $3,673,000
(less a $9,000 rescission) appropriated in FY2001. The Senate committee
recommended and the Senate passed the same amount as the President requested.
The law also provides an appropriation of $318,000 for the operating expenses
of the Official Residence of the Vice President. This was the amount recommended
by the House committee, passed by the House, and agreed to by the conference
committee. The President requested $314,000, an 11.3% decrease over the $354,000
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.
Section 635 of the law (section 634 of the House version and section 638 of the
Senate version) authorizes the Department of the Navy to pay the utility bills,
including the electric bill, for the Vice President’s residence, thereby shifting the
expenses from the EOP account. (The entire property, of which the residence is part,
is owned and operated by the Navy.) House committee and floor amendments to
maintain the costs in the EOP account were rejected.
Section 636 of the law (section 635 of the House version and section 636 of the
Senate version) authorizes the Department of the Navy to accept gifts of consumable
items (i.e., food or liquor), or funds for them, for use at official functions at the Vice
President’s residence, including the hosting of foreign dignitaries. House committee
and floor amendments to prohibit this practice were rejected.
CRS-23
The section 635 and 636 provisions were recommended in the President’s
budget.
Council of Economic Advisers (CEA). The three-member council was
created in 1946 to assist and advise the President in the formulation of economic
policy. The council analyzes and evaluates the national economy, economic
developments, federal programs, and federal policy to formulate economic advice.
The council assists in the preparation of the annual Economic Report of the President
to Congress.
P.L.107-67 appropriates $4,211,000, an increase of 2.4% over the $4,110,000
appropriated in FY2001; of which $9,000 was subsequently rescinded. The Senate
approved an appropriation of $4,192,000, the amount requested by the President.
The House approved an appropriation of $4,211,000 and this was the amount agreed
to by the conference committee.
Office of Policy Development. The Office supports the National Economic
Council and the Domestic Policy Council in carrying out their responsibilities to
advise and assist the President in formulating, coordinating, and implementing
economic and domestic policy. The Office also supports other domestic policy
development and implementation activities.
P.L. 107-67 provides an appropriation of $4,142,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $4,119,000, an increase of 2.2% over the $4,032,000 (less a $9,000 rescission)
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.
National Security Council (NSC). The NSC advises the President on
integrating domestic, foreign, and military policies relating to national security.
P.L. 107-67 provides an appropriation of $7,494,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $7,447,000, an increase of 3.9% over the $7,165,000 (less a $15,000 rescission)
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.
Office of Administration. The Office of Administration provides
administrative services, including financial, personnel, library and records services,
information management systems support, and general office services, to the
Executive Office of the President.
P.L. 107-67 provides an appropriation of $46,955,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $46,032,000, an increase of 5.2% over the $43,737,000 (less a $96,000 rescission)
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.
CRS-24
Subsequent to the September 11 attacks, the Office of Administration has been
allocated funding for the relocation of personnel and enhanced security. See the
“Terrorism” section below for further details.
Office of Management and Budget (OMB). OMB assists the President
in discharging budgetary, management, and other executive responsibilities. The
agency’s activities include preparing the budget documents; examining agency
programs, budget requests, and management activities; preparing the governmentwide financial management status report and five-year plan (with the Chief Financial
Officer Council); reviewing and coordinating agency regulatory proposals and
information collection requirements; and promoting economical, efficient, and
effective procurement of property and services for the executive branch.
P.L. 107-67 provides an appropriation of $70,752,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $70,521,000, an increase of 2.5% over the $68,786,000 (less a $151,000
rescission) appropriated in FY2001. The Senate committee recommended and the
Senate passed an appropriation of $70,519,000.
Office of National Drug Control Policy (ONDCP). The ONDCP
develops policies, objectives, and priorities for the National Drug Control Program.
The account also funds general policy research to support the formulation of the
National Drug Control Strategy.
P.L. 107-67 provides an appropriation of $25,263,000 for salaries and expenses.
This was the amount agreed to by the conference committee. The President’s
FY2002 budget proposed an appropriation of $25,100,000, an increase of 1.4% over
the $24,759,000 (less a $55,000 rescission) appropriated in FY2001. The House
committee recommended and the House passed an appropriation of $25,267,000.
The Senate committee recommended and the Senate passed an appropriation of
$25,096,000.
The Counterdrug Technology Assessment Center (CTAC). The
CTAC is the central counterdrug research and development organization for the
federal government.
P.L. 107-67 provides an appropriation of $42,300,000. Of the total,
$20,064,000 is for the basic research and development program and $22,236,000 is
for the continued operation of the technology transfer program. This was the amount
agreed to by the conference committee. The President’s FY2002 budget proposed
an appropriation of $40,000,000, an increase of 10.9% over the $36,053,000 (less a
$79,000 rescission) appropriated in FY2001. The House committee recommended
and the House passed the same amount as the President requested. The Senate
committee recommended and the Senate passed an appropriation of $42,000,000.
Federal Drug Control Programs. The High Intensity Drug Trafficking
Areas (HIDTA) program provides assistance to federal, state, and local law
enforcement entities operating in those areas most adversely affected by drug
CRS-25
trafficking. Funds are disbursed at the discretion of the director of ONDCP for joint
local, state, and federal initiatives.
P.L. 107-67 provides an appropriation of $226,350,000. This was the amount
recommended by the Senate committee, passed by the Senate, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $206,305,00040 a decrease of 0.1% over the $206,500,000 appropriated in
FY2001. The House committee recommended an appropriation of $231,500,000.
The House passed an appropriation of $233,882,000.
The Senate adopted an amendment (Senator Dorgan, Amendment No. 1584)
which would designate a HIDTA in the State of Utah and apportion $2,500,000 of
those funds to be used for it. The conference report states:
As ONDCP reviews proposals for the increased HIDTA funding provided, the
conferees direct it to consider the following: increases for Central Florida, Rocky
Mountain, Midwest (for Missouri, Iowa, and North Dakota), Chicago, Southwest
Border (for Arizona, New Mexico, and West Texas), Southeast Michigan,
Appalachian, Lake County, Gulf Coast, Hawaii, Philadelphia/Camden, Oregon,
and Milwaukee HIDTAs; and funding for expansion of HIDTAs in North Texas
(to Oklahoma counties), and the Northwest (to counties in southwest and eastern
Washington); and possible designation of Arkansas and North Carolina, which
have sought designation in recent years.41
The Special Forfeiture Fund. The Fund, administered by the director of
ONDCP, supports high-priority drug control programs. The funds may be transferred
to drug control agencies or directly obligated by the ONDCP director.
P.L. 107-67 provides an appropriation of $239,400,000. This was the amount
agreed to by the conference committee. The President’s FY2002 budget proposed
an appropriation of $247,600,000, an increase of 6.0% over the $233,600,000
appropriated in FY2001. The House committee recommended and the House passed
an appropriation of $238,600,000. The Senate committee recommended and the
Senate passed an appropriation of $249,400,000.
Unanticipated Needs. The account provides funds for the President to meet
unanticipated needs in furtherance of the national interest, security, or defense.
In FY2001, $3,500,000 (less an $8,000 rescission) was appropriated, of which
$2,500,000 was for the Elections Commission of the Commonwealth of Puerto Rico
to be used for objective, nonpartisan citizens’ education and a choice by voters
regarding the islands’ future status.
P.L. 107-67 provides an appropriation of $1,000,000 for FY 2002. This was the
amount proposed by the President’s budget, recommended by the House and Senate
40
The President’s budget shows an appropriation of $206,305,000, but the House and Senate
Committees on Appropriations reports state that the amount requested was $206,350,000.
41
Conference Report, p. 63.
CRS-26
committees, passed by the House and Senate, and agreed to by the conference
committee.
The President allocated $51,000,000 from the Emergency Response Fund to the
Unanticipated Needs account. The communication to Congress provides no further
explanation. See the section on “Terrorism” below for information on the allocations.
Independent Agencies
Federal Election Commission (FEC). The FEC administers federal
campaign finance law, including overseeing disclosure requirements, limits on
contributions and expenditures, and the presidential election public funding system;
the agency retains civil enforcement authority for the law. The Office of Election
Administration, which serves as a clearinghouse for information on voting laws and
procedures for state and local election officers, is another part of the FEC .
P.L. 107-67 appropriates $43,689,000, the same as the House-passed level.
Also as proposed by the House, the act includes a new general provision (section 642)
extending FEC authority to assess administrative fines for straightforward violations
of reporting deadlines, from December 31, 2001 to December 31, 2003.
The Administration’s budget proposal for FY2002 called for $41,411,000 for the
FEC, an increase of $1,000,100 over the $40,410,900 appropriated under P.L.
106-554 for FY2001 (which reflected $40,500,000, minus an across-the-board .22%
rescission). Of the $41.4 million requested, no less than $4,453,000 shall be available
for internal automated data processing systems ($236,500 less than the amount
targeted for the previous year) and no more than $5,000 may be used for reception
and representational expenses. The Administration’s budget called for a full-time
equivalent staffing authorization of 357, the same as for FY2001.
In the FEC’s separate submission to OMB, the agency requested $47,671,000,
or $6,260,000 more than the Administration proposes. The FEC also asked for 375
personnel, which was 18 more than requested in the President’s budget proposal. In
justifying its request for additional funding and staff, the agency cited, among other
things, the heightened demands on the election clearinghouse for assistance on
election administration issues in the wake of the 2000 presidential election.
The House-passed version would have provided an appropriation of
$43,689,000, exceeding the Administration’s proposed level by more than $2.2
million. Of the total, no less than $5,128,000 would be available for internal
automated data processing systems and no more than $5,000 would be available for
reception and representation expenses. In addition, the measure would include a new
general provision extending authority for the FEC to assess administrative fines for
straightforward violations of reporting deadlines, from December 31, 2001 to
December 31, 2003.
The Senate-passed version recommends an appropriation of $43,993,000, some
$304,000 more than the House-passed figure and $2,582,000 more than the
Administration’s request. This higher figure would incorporate $582,000 for the
government-wide pay adjustment and $2 million for improvements to state and local
CRS-27
election systems and administration, the latter conditioned on enactment of
authorizing legislation for such a program. No less than $4,453,000 of the
recommended amount would be required to be devoted to internal automated data
processing systems. No provision was included regarding administrative fines.
Federal Labor Relations Authority (FLRA). The agency serves as a
neutral party in the settlement of disputes that arise between unions, employees, and
agencies on matters outlined in the Federal Service Labor Management Relations
Statute; decides major policy issues; prescribes regulations; and disseminates
information appropriate to the needs of agencies, labor organizations, and the public.
The FLRA also engages in case-related interventions and training and facilitates labormanagement partnerships. It has three components: the Authority which adjudicates
labor-management disputes, the Office of the Inspector General which conducts and
supervises audits and investigations related to FLRA’s functions, and the Federal
Service Impasses Panel which resolves impasses which occur during labor
negotiations between federal agencies and labor organizations.
P.L. 107-67 provides an appropriation of $26,524,000 for the FLRA. This was
the amount passed by the House and agreed to by the conference committee. The
President’s FY2002 budget proposed an appropriation of $26,378,000. The request
was 5.5% above the FY2001 funding minus the rescission. The House and Senate
committees recommended and the Senate passed the same amount as the President
requested.
The agency’s FY2001 appropriation was $25,058,000. P.L. 106-554 also
provided for a 0.22% or $55,000 across-the-board cut in the FY2001 funding.42 After
this reduction, the FY2001 funding was $25,003,000.
General Services Administration (GSA). The General Services
Administration administers federal civilian procurement policies pertaining to the
construction and management of federal buildings, disposal of real and personal
property, and management of federal property and records. It is also responsible for
managing the funding and facilities for former Presidents and presidential transitions.
GSA is one of several agencies covered by this bill which are involved in
counterterrorism activities. Please see the “Terrorism” section below for further
details.
Under P.L. 107-67, GSA is funded at $472,081,000 for FY2002. The funding
includes $284,000,000 to the Federal Buildings Fund, $143,139,000 to policy and
operations, $36,346,000 to the Office of Inspector General, $5,000,000 to the
Electronic Government (E-Gov) Fund, and $3,196,000 to the allowances and office
staff for former Presidents. Sections 401 through 413 relate to GSA general
provisions. Sections 408-413 are new provisions which relate to vehicle policy
management, naming of specific federal buildings, road construction and property
transfer.
42
FY2002 Budget, Analytical Perspectives, p. 355.
CRS-28
The House had approved an appropriation of $459,021,000 for GSA. Of this
total, $276,400,000 would be provided for the Federal Buildings Fund; $137,947,000
for policy and operations; $36,378,000 for the Office of Inspector General; and
$3,196,000 for allowances and office staff for former Presidents. The House
committee had approved an appropriation of $458,401,000.
S. 1398, as introduced in the Senate and as reported by the Senate committee,
would have provided $276,400,000 for the Federal Buildings Fund; $145,749,000 for
policy and operations; $36,025,000 for the Office of Inspector General; and
$3,376,000 for allowances and office staff for former Presidents. The Senate
approved those amounts.
The President’s FY2002 budget contained a request for $138,499,000 for policy
and operations; $36,025,000 for the Office of Inspector General; and $3,552,000 for
allowances and office staff for former Presidents.
Three different laws provide FY2001 funding to the General Services
Administration. P.L. 106-554 provides $632,211,000 for GSA in FY2001. Of this
total, $464,154,000 is appropriated for the Federal Buildings Fund; $123,920,000 for
policy and operations; $34,520,000 for the Office of Inspector General; $2,517,000
for benefits to former Presidents; and $7,100,000 for the presidential transition. An
additional $2,070,000 is to be deposited into the Federal Buildings Fund. An advance
FY2002 appropriation of $276,400,000 is also provided for the Federal Buildings
Fund. P.L. 106-346 appropriated $11,350,000 in FY2001 funds to the Federal
Buildings Fund and $13,789,000 for the policy and operations account. P.L. 106275, as amended provided $7,100,000 for presidential transition, releasing funds
needed after the election for that purpose. GSA FY2001 is reduced, through the
rescission, by $1,470,000, with $1,053,000 coming out of the Federal Buildings Fund.
P.L. 107-20 added an additional $25,757,000 to GSA’s FY2001 appropriation.
Federal Buildings Fund (FBF). The act includes the $276,400,000
appropriated in FY2001 as advance appropriations for the FBF and an additional
$8,000,000 for FY2002. The House and Senate had determined that there would be
no additional direct appropriation into the Federal Buildings Fund for FY2002. A
total of $276,400,000 for the Federal Buildings Fund is the amount included in
FY2001 direct appropriations which was designated to become available on October
1, 2001. The House agreed to an amendment making available $14 million from the
Fund for a National Archives and Records Administration building in Georgia.
Since the FY2001 advance appropriation provided $276,400,000, no additional
funds were requested. Of the $6,107,891,000 deposited in the FBF, the President’s
FY2002 budget requests that $386,289,000 shall remain available until expended for
construction, and that $826,676,000 shall remain available until expended for repairs
and alterations.
Revenue to the FBF is the principal source of funding. Congress, however,
directs the GSA as to the allocation (or limitation on spending) of funds. The
conference agreement would provide $386,280,000 for construction and acquisition
of facilities; $826,676,000 for repairs and alternations; $186,427,000 for installment
acquisitions payments; $2,952,050,000 for rental of space; and $1,748,949,000 for
building operations. All of these levels meet or fall just below the Administration
CRS-29
request and the House-passed version. That holds true also with the Senate version
except the Senate would have provided over $90,000,000 more for the spending
allotment in the construction and acquisition of facilities account. The conferees
direct the Federal Buildings Fund managers on specific issues with regard to the
spending of the funds.43
Electronic Government Fund. In advance of his proposed budget for
FY2002, the President released, on February 28, 2001, A Blueprint for New
Beginnings: A Responsible Budget for America’s Priorities. Intended as a 10-year
budget plan, the Blueprint, among other innovations, proposed the establishment of
an electronic government account, seeded with “$10 million in 2002 as the first
installment of a fund that will grow to a total of $100 million over three years to
support interagency electronic Government (e-gov) initiatives.” Managed by OMB,
the fund was foreseen as supporting “projects that operate across agency boundaries,”
facilitating “the development of a Public Key Infrastructure to implement digital
signatures that are accepted across agencies for secure online communications,” and
furthering “the Administration’s ability to implement the Government Paperwork
Elimination Act of 1998, which calls upon agencies to provide the public with
optional use and acceptance of electronic information, services and signatures, when
practicable, by October 2003.”44 About one month later, on March 22, OMB Deputy
Director Sean O’Keefe announced that the Bush Administration had decided to
double the amount to be allocated to the e-gov fund, bringing it to $20 million.45
As included in the President’s budget, the fund was established as an account
within the General Services Administration, to be administered by the Administrator
of General Services “to support interagency projects, approved by the Director of the
Office of Management and Budget, that enable the Federal Government to expand its
ability to conduct activities electronically, through the development and
implementation of innovative uses of the Internet and other electronic methods.” The
Senate bill, as approved by the Senate, provided $5 million, to remain available until
expended, as did the House bill adopted by the House. Also, the Senate bill, like the
House bill, stipulated that transfers of monies from the fund to federal agencies may
not be made until 10 days after a proposed spending plan and justification for each
project to be undertaken using such monies has been submitted to the Committee on
Appropriations. Ultimately, the House and the Senate accepted the conference
agreement on H.R. 2590 retaining both the $5 million appropriation for the fund and
the requirement for a proposed spending plan and justification for each project using
fund monies. Expressing general support for the purposes of the fund, the conferees
had recommended, and both chambers accepted, that the administration work with
the House Committee on Government Reform and the Senate Committee on
43
Conference Report, pp. 64-65.
44
U.S. Executive Office of the President, Office of Management and Budget, A Blueprint for
New Beginnings, pp. 179-180.
45
William Matthews, “Bush E-gov Fund to Double,” Federal Computer Week, vol. 15, Mar.
26, 2001, p. 8.
CRS-30
Governmental Affairs to clarify the status of its authorization. The President’s initial
request for the fund was $20 million, to remain available until September 30, 2004..46
Merit Systems Protection Board (MSPB). The MSPB assists federal
agencies in running a merit-based civil service system. The agency carries out its
mission on a case-by-case basis through hearings and decisions on employee appeals,
and on a systematic basis by reviewing the significant actions and regulations of the
Office of Personnel Management (OPM) and studying the civil service and other merit
systems. MSPB’s work is to ensure that personnel actions are processed within the
law and that the actions of OPM and other agencies support and enhance merit
principles.
P.L. 107-67 provides an appropriation of $30,555,000 for the MSPB. In
addition, $2,520,000 would be transferred from the Civil Service Retirement and
Disability trust fund to provide for administrative expenses to adjudicate retirement
appeals. This was the amount passed by the House and agreed to by the conference
committee. The President’s FY2002 budget proposed an appropriation of
$30,375,000. The request, not including the trust fund transfer, was 3.4% above the
FY2001 funding minus the rescission. The House and Senate committees
recommended and the Senate passed the same amount as the President requested.
The agency’s FY2001 appropriation, not including the trust fund transfer, was
$29,437,000. P.L. 106-554 also provided for a 0.22% or $65,000 across-the-board
cut in the FY2001 funding.47 After this reduction, the FY2001 funding was
$29,372,000.
National Archives and Records Administration (NARA). The
custodian of the historically valuable records of the federal government since its
establishment in 1934, NARA also prescribes policy and provides both guidance and
management assistance concerning the entire life cycle of federal records. It also
administers the presidential libraries system; publishes the laws, regulations, and
presidential and other documents; and assists the Information Security Oversight
Office (ISOO), which manages federal security classification and declassification
policy; and the National Historical Publications and Records Commission (NHPRC),
which makes grants nationwide to help nonprofit organizations identify, preserve, and
provide access to materials that document American history.
Under P.L. 107-67, NARA will receive $276,602,000. This represents an
appropriation of $283,214,000 offset by debt reduction in the amount of $6,612,000.
Of the $244,247,000 for NARA operating expenses, $22,302,000 is for an electronic
records archive, $16,337,000 of which shall be available until September 30, 2004.
The funding reflects both the Senate- and House-passed funding levels. The House
amount was a $700,000 increase, effected through a Rules Committee amendment,
in the $243,547,000 allocated by the bill as reported from the Appropriations
46
William Matthews, “Bush E-gov Fund to Double,” Federal Computer Week, vol. 15, Mar.
26, 2001, p. 8.
47
FY2002 Budget, Analytical Perspectives, p. 356.
CRS-31
Committee. The provided funds are in the amount requested in the President’s
FY2002 budget.
P.L. 107-67 provides $39,143,000 for repairs and restoration, $28,500,000 of
which was designated for a new Southeast regional archives facility to be constructed
on land to be acquired by direct payment or the provision of site improvements from
the State of Georgia or Clayton County or some other governmental authority
thereof. The Senate had provided $30,500,000 for construction of a NARA facility
in Georgia and $41,143,000 for repairs and restoration of NARA facilities,. The
House had allocated $24,643,000 for repairs and restoration of NARA
facilities—$10,643,000 as requested in the President’s budget and $14 million made
available, through the adoption of an amendment during floor debate, from the
General Services Administration Federal Buildings Fund for the NARA facility to be
built in Georgia.
P.L. 107-67 provides $6,436,000 for the NHPRC grants program, as requested
in the President’s budget. This was the amount approved by the Senate. The Senate
Appropriations Committee report on the bill had noted the interest of two libraries in
preserving and making accessible their particular holdings of the papers of John
Adams and Calvin Coolidge, and had encouraged the NHPRC to work with the
officials of those institutions to develop competitive grant proposals. Similarly, within
the funds provided, the Committee had recommended that the NHPRC work closely
with the University of Hawaii and the University of Alaska to develop a proposal for
cataloging the historic records relating to statehood in preparation for the 50th
anniversary statehood celebrations in Hawaii and Alaska. The House had provided
$10 million for the NHPRC grants program, which was an increase of $5,564,000
above the President’s request. Of the grants funds allocated by the House,
$1,700,000 was specified for assisting the Oklahoma Centennial Commission with
memorializing the Oklahoma Land Run, and $1 million was specified for the Boston
Public Library to assist with preserving and enhancing its holdings of materials related
to John Adams.
Also accepted in the final version of the bill was conferee report language
amending section 2105 of Title 44, United States Code, to allow the Archivist to
appoint directors at presidential archival depositories as qualifying for Senior
Executive Service positions. During Senate consideration of the bill, a floor
amendment (amendment No. 1575) authorizing the Archivist to appoint directors at
presidential archival depositories as qualifying for Senior Executive Service positions
was adopted.
The total amount appropriated for NARA by the House, $278,290,000, was
adjusted by $6,612,000 for debt reduction, making the allocation $272,278,000.
Drawing upon funds made available to him by the Emergency Supplemental
Appropriations Act for Recovery from and Response to Terrorist Attacks on the
United States, FY2001, President Bush, on October 16, 2001, allocated $7 million to
NARA, $4.8 million for the operating expenses account for additional guard services
at NARA-owned facilities, and $2.2 million for the repairs and restoration account.
(See the Terrorism section of this report.)
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Office of Government Ethics (OGE). The Office of Government Ethics,
a small agency within the executive branch, was established by the Ethics in
Government Act of 1978. Originally part of the Office of Personnel Management,
OGE became a separate agency on October 1, 1989, as a result of the Office of
Government Ethics Reorganization Act of 1988. The Office of Government Ethics
exercises leadership in the executive branch to prevent conflicts of interest on the part
of government employees, and to resolve those conflicts of interest that do occur. In
partnership with executive branch agencies and departments, OGE fosters high ethical
standards for employees and strengthens the public's confidence that the government's
business is conducted with impartiality and integrity.
P.L. 107-67 funds OGE at $10,117,000, an increase of $454,000 from FY
2001 funding. This is the amount approved by the House of Representatives. The
FY2002 request had been $10,060,000, an actual increase from FY2001 of $397,000.
Although the House approved the $10,117,000, the Senate approved $10,060,000l.
For FY2001, P.L. 106-554 appropriated the requested amount of $9,684,000,
which was subject to a .22% rescission of $21,000. Accordingly, the net funding for
FY2001 was $9,663,000.
On December 20, 2001, legislation (S. 1202) reauthorizing the OGE through
FY2006 was cleared for the President’s approval.
Office of Personnel Management (OPM). The budget for OPM is
comprised of budget authority for both permanent and current appropriations. This
report discusses the budget authority for current appropriations. The agency is
responsible for administering personnel management functions. Among the activities
OPM engages in are helping agencies develop merit-based human resources
management accountability systems to support their missions; managing the federal
government’s merit-based employment system; administering the retirement, health
benefits, and life insurance programs for current and retired federal employees;
developing and implementing policies on pay and leave administration; and developing
and administering policies, regulations, and guidelines on employee relations. The
Office of Inspector General (OIG) conducts audits, investigations, evaluations, and
inspections throughout the agency and may issue administrative sanctions related to
the operation of the Federal Employees Health Benefits Program.
P.L. 107-67 provides an appropriation of $15,508,134,000 for OPM. This total
includes discretionary funding of $99,636,000 for salaries and expenses and
$1,498,000 for OIG salaries and expenses. It also includes mandatory funding of
$6,145,000,000 for the government payment for annuitants of the employees health
benefits program,48 $33,000,000 for the government payment for annuitants of the
employee life insurance program, and $9,229,000,000 for payment to the civil service
retirement and disability fund. Not included in this total are trust fund transfers of
$115,928,000 for salaries and expenses (of which $21,777,000 would remain available
until expended for the cost of automating the retirement record-keeping systems) and
48
The President’s budget shows an appropriation of $6,102,000,000, but the House
Appropriations committee report states that the amount requested was $6,145,000,000.
CRS-33
$10,016,000 for OIG salaries and expenses. (In FY2001, $101,986,000 for salaries
and expenses and $9,745,000 for OIG salaries and expenses were transferred from
trust funds.) The P.L. 107-67 amounts were passed by the House and agreed to by
the conference committee.
The President’s FY2002 budget proposed an appropriation of $15,507,434,000
for the agency. This total included discretionary funding of $99,036,000 for salaries
and expenses; $1,398,000 for the OIG; and the same amounts as P.L. 107-67 provides
for the other accounts. The request, not including the trust fund transfers, was 7%
above the FY2001 funding minus the rescission. The House and Senate committees
recommended, and the Senate passed, the same amount as the President requested.
The agency’s FY2001 appropriation, not including the trust fund transfers, was
$14,497,672,000. P.L. 106-554 also provided for a 0.22% or $462,000 across-theboard cut in the FY2001 funding.49 After this reduction, the FY2001 funding was
$14,497,210,000.
The House committee’s report:
directs the Office of Personnel Management to submit a report within 120 days of
enactment on the cost of administering the FWS, [Federal Wage System] including
the cost of data collection, the cost of analyzing FWS data and its transformation
into FWS pay lines and wage schedules, the cost of operating the Federal
Prevailing Rate Advisory Committee, and the number of FWS workers in each
Federal agency. This information will help to determine whether the data used by
the FWS justifies its cost, and whether other mechanisms for setting federal blue
collar worker pay would be more effective.50
In its report, the Senate committee expressed support for “providing the
technology necessary to modernize the Federal employee retirement system,” but:
recommends that OPM reach out to GAO for guidance and support on this
initiative and encourages the establishment of a relationship for the duration of the
project. The Committee expects to be informed regularly by OPM and GAO on
the progress of this IT [information technology] project.51
Office of Special Counsel (OSC). The agency investigates federal
employee allegations of prohibited personnel practices and, when appropriate,
prosecutes matters before the Merit Systems Protection Board; provides a channel for
whistle blowing by federal employees; and enforces the Hatch Act. In carrying out
the latter activity, the OSC issues both written and oral advisory opinions. The OSC
may require an agency to investigate whistleblower allegations and report to the
Congress and the President as appropriate.
49
FY2002 Budget, Analytical Perspectives, p. 353.
50
House Report, p. 83.
51
Senate Report, p. 83.
CRS-34
P.L. 107-67 provides an appropriation of $11,891,000 for the OSC. This was
the amount passed by the House and agreed to by the conference committee. The
President’s FY2002 budget proposed an appropriation of $11,784,000. According
to the budget, “this request will enable OSC to continue its efforts to reduce its longstanding case processing backlogs.” The agency’s revised FY2002 strategic plan
“place[s] more emphasis on prioritizing cases by category and resource allocation,
while improving quality.”52 The request was 6.0% above the FY2001 funding minus
the rescission.
The House committee recommended an appropriation of $11,823,000. The
Senate committee recommended, and the Senate passed, the same amount as the
President requested.
The agency’s FY2001 appropriation was $11,147,000. P.L. 106-554 also
provided for a 0.22% or $25,000 across-the-board cut in the FY2001 funding.53 After
this reduction, the FY2001 funding was $11,122,000.
General Provisions
This section of the report discusses, briefly, general provisions such as
government-wide guidance on basic infrastructure-like policies. Examples would be
provisions related to the Buy America Act, drug-free federal workplaces, and
authorizing agencies to pay GSA bills for space renovation and other services which
are annually incorporated into the Treasury and General Government appropriations
legislation. Quite frequently, additionally, there will be provisions which relate to
specific agencies or programs. For both Title V and VI, with noted exceptions, the
sections discussed here will be those which are new or contain modified policies. The
Administration’s proposed language for general provisions in Title VI is found the
Appendix.54 The amendments adopted and rejected during House consideration and
passage of H.R. 2590 July 25 and the Senate amendments considered and adopted
September 19, are presented in the section of the report entitled “Status and
Legislative History.”
Under Title V, P.L. 107-67 includes a new provision (section 515) regarding
prohibiting the use of funds to any person or entity convicted of violating the Buy
American Act.
Title VI contains several new or significantly modified, provisions as agreed to
by the conferees.
Section 619 modifies and continues the provision prohibiting the importation of
any goods manufactured by forced or indentured child labor.
52
FY2002 Budget, Appendix, p. 1203.
53
FY2002 Budget, Analytical Perspectives, p. 357.
54
FY2002 Budget, Appendix, pp. 9-14.
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Section 630 continues and makes permanent the provision authorizing agencies
to provide childcare in federal facilities. (See discussion below.)
Section 634 extends the authorization for franchise fund pilots for one year.
Section 635 clarifies that the Department of the Navy will provide and pay for
utilities for the official residence of the Vice President without reimbursement.
This provision was proposed in the President’s budget. An amendment to strike this
language was defeated during House consideration and debate.
Section 636 authorizes the Secretary of the Navy to accept gifts of consumable
items, or funds for the, to be accepted for use at official functions at the Vice
President’s residence, including the hosting of foreign dignitaries. This provision was
proposed in the President’s budget. A amendment to strike this language was
defeated during House consideration and debate.
Section 637 clarifies that certain Title 5 authorities are available with respect to
civilian personnel of the White House Office, the Executive Residence at the White
House, the Office of the Vice President, the Domestic Policy council, and the Office
of Administration. This provision was proposed in the President’s budget.
Section 638 requires the Office of Personnel Management to submit a report
regarding telecommuting centers.
Section 639 continues and modifies a provision prohibiting the use of funds to
monitor personal information relating to the use of Federal internet sites. Applies
provision government-wide.
Section 640 amends Title 5 to clarify retirement benefits for air traffic
controllers.
Section 641 amends 5 U.S.C. 4507 to make federal employees in senior technical
positions eligible for Presidential rand awards.
Section 642 extends authority for the FEC to assess administrative fines for
straightforward violations of reporting deadlines from December 31, 2001 to
December 31, 2003.
Section 643, while continuing the contraceptive coverage in health plans
participating in the Federal Employees Health Benefits Program (see discussion under
federal personnel issues below), deletes the name of a provider no longer participating
in the program. The requirement (section 630, FY2001), first enacted in FY1999, has
been highly controversial. The Bush administration recommended eliminating the
requirement.
Section 644 clarifies that the U.S. Anti-Doping Agency is the official anti-doping
agency for the Olympic games.
Section 645 clarifies the status of certain employees of the United States-China
Security Review Commission.
CRS-36
Section 646 provides a 4.6% pay adjustment for federal civilian white collar
employees. The rule (H. Res. 206) on the bill provided for approval of an amendment
which would provide $27.9 million for partial costs associated with pay parity for
civilian employees.
Section 647 directs departments and agencies to comply with the Rural
Development Act of 1972.
Section 648 extends the deadline for the submission of annual reports by the
United States-China Security Review Commission, as proposed by the Senate.
Section 649 allows the National Archives to establish SES positions at
Presidential Libraries.
Section 650 extends authorization of the “Breast Cancer Research Stamp.”
Section 651 relates to the shipment by the U.S. Postal Service of day-old
poultry.
Section 652 authorizes the “9/11 Heroes Stamp” as a semipostal.
Section 653 authorizes the “Stamp Out Domestic Violence” stamp.
Administration General Provision Proposals.
The Bush Administration recommended elimination of the provision (section
609, FY2001) which prohibits payment to political appointees functioning in jobs for
which they have been nominated, but not confirmed. This provision has been in the
bill for at least twenty years. The previous administration also recommended its
elimination. The House adopted an amendment which would reinstate that language.
The Bush Administration also recommended elimination of the provision (section
612, FY2001) which prohibits use of funds to “implement, administer, or enforce any
regulation” which has been disapproved through statutorily authorized means. If the
provision were eliminated, conceivably the executive could continue regulatory
activities which Congress had disapproved, through resolution of disapproval or the
Congressional Review Act. The provision, in the bill since the early 1980s, had been
recommended for elimination by the previous administration also. The provision
appears as section 612 P.L. 107-67.
Another section (section 621, FY2001) recommended for elimination by both the
Bush and Clinton administrations, is that which requires that no funds may be
obligated or expended for employee training that does not directly relate to the
employee’s official duties, that contains elements likely to induce high levels of
emotional response or psychological stress in some participants, that does not notify
employees of content in the course or post-course evaluation, that contains any
methods or content “associated with religious or quasi-religious belief systems or
‘new age’ belief systems,” and that is offensive to, or designed to change,
participants’ personal values or lifestyles away from the workplace. The language
affirms the agencies’ responsibilities to train staff for the performance of official
CRS-37
duties. This language has been in the bill since the mid-1990s. The provision appears
as section 621 in the act.
Section 622 (FY2001) prohibits the use of funds to require and execute
employee non-disclosure agreements without those agreements having whistle-blower
protection clauses. The Bush proposal would eliminate that provision, which has
been in the bill for over ten years. The provision appears as section 622 in the act.
Section 627 (FY2001) requires approval by the Committees on Appropriations
of release of any “non-public” information such as mailing or telephone lists to any
person or any organization outside the federal government. That provision would be
eliminated under the President’s proposal. It appears as section 625 in the act.
Federal employees in executive agencies are required (section 629, FY2001) to
“use official time in an honest effort to perform official duties.” That requirement, in
the bill since FY1999, has been slated for elimination by both the Bush and Clinton
budget proposals. The argument has been that the ethics statutes, in fact, place that
same requirement on all federal personnel. The provision appears as section 627 in
the act.
There were four new sections proposed in the President’s budget:
! to extend to October 1, 2002 the franchise fund pilot programs established
under the Federal Financial Management Act of 1994 (P.L. 103-356) ( budget
proposal section 628; P.L. 107-67, section 634 );
! to amend P.L. 93-346 to require that the Secretary of the Navy provide for
utilities, including electrical, at the official residence of the Vice President
(budget proposal section 629; section 635 in the act; an amendment on the
House floor to strike this language was rejected);
! to amend P.L. 93-346 to authorize and direct the Secretary of the Navy to
accept donations of money or property or use at official functions in or about
the official residence of the Vice President (budget proposal section 630; H.R.
2590, section 636 in the act; an amendment on the House floor to strike this
language was rejected); and
! to provide that the heads of the White House Office, the Executive Residence
at the White House , the Office of the Vice President, the Domestic Policy
Staff, and the Office of Administration would have full employment authority
over all federal personnel (from any branch) detailed to any of their respective
entities (budget proposal section 631; section 637 in the act).
See the section on federal child care policies below for a discussion of changes
proposed to those policies (section 633, FY2001, budget proposal and P.L. 107-67
section 624).
There are several general provisions which the Bush budget would eliminate
because they were made permanent through the FY2001 legislation. See “Status and
Legislative History” above for information on House floor amendments which were
adopted.
CRS-38
Terrorism
According to the Office of Management and Budget, several accounts under this
appropriation (Department of the Treasury, Bureau of Alcohol, Tobacco, and
Firearms, U.S. Customs Service, U.S. Secret Service, and the General Services
Administration) receive funding for functions related to countering terrorism. With
the exception of the Counterterrorism fund account within the Department of the
Treasury, none of the agencies carry a line account specifically funding
counterterrorism, or terrorism responses. Certain accounts have been allocated funds
from the Emergency Response Fund established through P.L. 107-38. Also, under
the provisions of P.L. 107-38, a further supplemental appropriation is authorized.
The Administration submitted specifics for the allocation of funds under such an
emergency supplemental and P.L. 107-117 appropriated funds. There has been
established, within the Executive Office of the President and Office of Homeland
Security.
The role of the Department of the Treasury relates to both its statutory missions
and the capabilities of its law enforcement groups. Although the Federal Bureau of
Investigation is the lead agency for several functions, the Customs Service has the
lead in preventing terrorist from entering the United States, the Secret Service is
responsible for protection of officials and facilities and has the lead in providing
security plans to prevent terrorist incidents at National Special Security Events, such
as the 2002 Olympics; and the Bureau of Alcohol, Tobacco and Firearms is the lead
on firearms and explosives. The Department itself has a general responsibility for the
support and security of the nation’s financial structure.
The General Services Administration has the responsibility for the management
and oversight of federal buildings and federal real property. Under the Government
Information Security Reform Act of 2000, (P.L. 106-398) the GSA is directed to
assist agencies in fulling their responsibility to maintain procedures for detecting,
reporting, and responding to security incidents. In this latter regard, GSA operates
the Federal Computer Incident Response Center (FedCIRC), whose purpose it is to
ensure that the government has a central focal point for handling computer security
related incidents, can withstand or quickly recover from attaches against its
information systems, and has a centralized computer security information-sharing
program.
Counterterrorism Activity Funding — OMB Annual Report
The Office of Management and Budget is required to submit an Annual Report
on Combating Terrorism. The most recent of these was issued in August 2001
[http://www.whitehouse.gov/omb/legislative] and provides some details on the
funding for these agencies.
That report notes that the FY2002 Budget request suggested modifications to
the Treasury Counterterrorism Fund
In order to provide greater flexibility in managing counterterrorism programs, in
which the needs for funding are often temporary and unforeseen, the
CRS-39
Counterterrorism Fund in the President’s FY2002 budget is patterned after the
fund that has been established at the Department of Justice. As proposed, the
Treasury Counter-terrorism Fund would still be used only for the costs of
providing support to counter, investigate, or prosecute terrorism, including rewards
in connection with these activities. Although expenditures would not have to be
designated emergency requirements, any amount provided from the Fund would
be available only after notice of its proposed use had been transmitted to the
Congress and such amount had been apportioned pursuant to 31 U.S.C. 1513(b).
This would ensure adequate Congressional oversight of Fund expenditures, while
permitting its use in all appropriate circumstances. (page 83)
Please note that Table 2 does not include a specific line amount for the fund.
Although no explanation is provided, it is assumed, since the funding amounts
correspond to those for the Fund, that the figures under the Departmental Offices are
those for the Fund. The House Committee on Appropriations data provided for
tracking the accounts shows that the FY2001 enacted $54.9 million, the President’s
request was $44.9 million, the House- passed version would fund the account at $36.9
million, and the Senate version, as reported, is $44.9 million (see Table 7 below).The
Senate report indicates a recognition of the varied responsibilities held by the Treasury
bureaus and indicates the expectation that these funds would be used to reimburse
them for activities including travel, transportation, and other support services.55
Table 2 provides funding information drawn from the tables at the end of the
OMB report (pages 92, 98-100). Please note that OMB does not indicate whether
these are budget authority figures or outlays.
Table 2. Department of the Treasury and General Services
Administration Funding to Combat Terrorism Including Defense
Against Weapons of Mass Destruction
(in millions of dollars)
Agency or Account
Department of the Treasury
Alcohol, Tobacco, and Firearms
Departmental Offices
Engraving and Printing
Federal Law Enforcement Center
Financial Management Service
Internal Revenue Service
Treasury IG for Tax Administration
U.S. Customs Service
U.S. Secret Service
General Services Administration
Public Buildings Service, Federal Protective Service
55
Senate report, p. 13.
CRS-40
FY2001
Enacted
$432.3
31.5
54.9
6.0
3.4
3.1
18.6
5.8
FY2002
Request
$419.4
31.7
44.9
6.0
3.4
2.4
21.2
6.0
81.4
227.7
71.7
232.2
105.9
105.6
Emergency Response Fund
Subsequent to the September 11, 2001 attacks, Congress enacted P.L. 107-38,
the Emergency Supplemental Appropriations Act for Recovery from and Response
to Terrorist Attacks on the United States, FY2001.56 The Emergency Response Fund
has been established and the President may allocate funds (up to a total of $20 billion)
as necessary to support the recovery, response, and national security activities as
dictated by circumstances related to the attacks. Congress has been notified of six
allocations affecting accounts covered by the Treasury and General Government
Appropriations. The funds in five (September 21 and 28, October 5, November 8 and
30) were made available immediately. The other allocation was forwarded to
Congress November 5, with funds to be made available to the Department of the
Treasury immediately and to the U.S. Postal Service after a 15-day congressional
review period.57 P.L. 107-38 also authorized the emergency supplemental enactment
of an additional $20 billion. The Administration sent forward its recommended
allocations under that measure. Congress made some changes and included the
supplemental appropriation as Division B of the FY2002 Department of Defense
Appropriation.
To date, the allocations for accounts within the Treasury and General
Government appropriation total $370.9 million. The two largest single allocations to
accounts usually funded by this appropriation are $51 million to the President’s
Unanticipated Needs fund and $175 million to the Postal Service. Table 3 presents
information on allocations to those accounts. Details on purposes are provided as
available. P.L. 107-117 funds the covered accounts for a total of $1,283.4 million.
See Table 4 for details.
Emergency Supplemental Authorized Under P.L. 107-38
In addition to the $20 billion in the Emergency Response Fund, P.L. 107-38, the
Emergency Supplemental Appropriations Act for Recovery from and Response to
Terrorist Attacks on the United States, FY2001, authorizes an emergency
supplemental of up to $20 billion, for the purposes of response and recovery. P.L.
107-117 appropriates a total of $1,283.4 million for the accounts covered by the
Treasury and General Government appropriation.58 The allocations are not identical
to those described as sent from the Administration. See Table 4 for details.
On October 16, the Administration detailed to Congress how those funds should
be allocated. Several accounts within the Treasury and General Government
56
P.L. 107-38; Sept. 18, 2001; (H.R. 2888, 107th Congress). See Terrorism Funding:
Congressional Debate on Emergency Supplemental Allocations, a CRS Report (RL31187).
57
The texts of the allocation communications from the Administration to Congress can be
found at [http://w3.access.gpo.gov/usbudget/fy2002/amndsup.html]. Estimates No. 15, 17,
18, 20, 21, 22, and 23 contain information on all such allocations for all appropriated funds
government wide.
58
P.L. 107-117 (H.R. 3338); Jan. 10, 2002; 115 Stat. 2230.
CRS-41
Appropriation would be affected. 59 According to the summaries provided by the
Administration:
The $315.2 million in funding proposed for the Treasury Department would
provide: $114.2 million for the customs Service to improve and expand airport and
aviation security as well as increase efforts of inspectors at high-risk seaports and
land borders; $104.8 million for the Secret Service to fund necessary, additional
expenses incurred due to the attacks, and $96.2 million for other Treasury
Department emergency expenses, including $37.2 million for the Internal Revenue
Service to replace damaged equipment in their New York offices.
This proposal would provide $50.0 million to enable the Executive Office of
the President to meet additional requirements in response to the September 11th
terrorist attacks and to ensure the continuity of support and services to the
president and Vice President of the United States.
A total of $200.5 million is requested for the Federal Buildings Fund [GSA]
to increase security services nationwide at Federal buildings, for replacement space
costs in New York City, for additional security equipment nationwide, and other
security costs.
In addition, $7 million would be allocated to the National Archives and Records
Administration. The total Administration allocations would have been $512.7 million
for these accounts.
On December 20, 2001, Congress cleared H.R. 3338 (Department of Defense
Appropriations, 2002) for the President’s approval. Division B of P.L. 107-117,
signed January 10, 2002 is the Emergency Supplemental Appropriation and provides
$1,283.4 million for accounts under discussion in this report.
Office of Homeland Security
During his September 20, 2001 speech before a joint session of Congress on the
September 11, 2001 terrorist attacks on America, President George W. Bush
announced that he was creating the Office of Homeland Security as a Cabinet-level
position reporting directly to him.60 The President also announced that Pennsylvania
Governor Tom Ridge would head the office. President Bush issued Executive Order
13228 on Monday, October 8, 2001 establishing within the Executive Office of the
59
Communication from the Office of Management and Budget, with a cover letter from
President George Bush to the Speaker of the House of Representatives, dated Oct. 16, 2001
(Estimate
No.
19),
as
required
under
P.L.
107-38
[http://w3.access.gpo.gov/usbudget/fy2002/amndsup.html].
60
U.S. President (George W. Bush), Weekly Compilation of Presidential Documents, vol.
37, Sept. 24, 2001, p. 1349. See also: U.S. Library of Congress, Congressional Research
Service, Homeland Security: the Presidential Coordination Office, CRS Report No.
RL31148, by (name redacted).
CRS-42
President an Office of Homeland Security.61 The mission of the office is to develop
and coordinate the implementation of a comprehensive national strategy to secure the
United States from terrorist threats or attacks. On October 5, $25,000,000 was
allocated from the Emergency Response Fund for the Office of Homeland Security.
Tom Ridge, who resigned as Governor of Pennsylvania on October 5, 2001 ,
was sworn in on October 8 and will serve as Assistant to the President for Homeland
Security. The New York Times reported that Mr. Ridge moved into a West Wing
office, will have a staff of 100, and "was given a $25 million start-up budget." Mr.
Ridge will also serve as a member of the Homeland Security Council, also established
by President Bush by Executive Order 13228 on October 8.
The press has provided considerable discussion of the office, its funding, and its
operation prior to the executive order. Government Executive quoted White House
spokesman Ari Fleischer as saying that the President would establish the office by
executive order and that Mr. Ridge would serve as an assistant to the President.62 At
a press briefing on September 21, 2001, Mr. Fleischer stated that questions of funding
and staff for the office are still being considered; a combination of new staff and
loaned staff from the Department of Justice and other departments could be used.63
The Washington Post reported that Mr. Ridge “will have his own budget and
‘significant’ staff” and will “recommend the parameters.”64 According to
Congressional Quarterly, Senators Bob Graham, Chairman of the Senate Select
Committee on Intelligence, Joseph Lieberman, Chairman of the Senate Committee on
Governmental Affairs, and Dan Burton, Chairman of the House Committee on
Government Reform and Oversight want the new office to be established by
legislation and given budget authority.65 Although Mr. Ridge did not officially resign
the governorship until October 5, 2001, the Harrisburg, PA. Patriot-News reported
that “much of the next two weeks will be spent in close contact with administration,
law enforcement and intelligence officials to begin organizing and staffing the new
office.” The newspaper quoted a White House official as saying that “the
administration is working with Congress on legislation to provide independent budget
authority.”66
61
Executive Order 13228, signed Oct. 8, 2001; 66 FR 51812, Oct. 10, 2001
62
Tom Shoop, “Bush Creates Homeland Defense Agency,” Government Executive, Sept. 20,
2001.
63
White House Press Briefing, Sept. 21, 2001.
64
Ellen Nakashima and Bradley Graham, “Direct Authority Called Key in Homeland
Agency,” Washington Post, Sept. 22, 2001, p. A07.
65
Alan K. Ota, “Hill Chairmen Demand Role in Oversight of Ridge’s Office,” CQ Monitor
News, Sept. 21, 2001.
66
Brett Lieberman, “Ridge to Oversee Federal Agencies’ Terrorism Response,” The PatriotNews, Sept. 22, 2001. Available on the Internet at [http://www.patriot-news.com/], visited
Sept. 24, 2001.
CRS-43
Table 3. Emergency Response Fund Allocations 67
Emergency Response Fund Allocations
Account
Allocation
Date
Purpose
Department of the Treasury
Departmental Offices
Salaries and Expenses
$6,100,000
9/21/01
Salaries and Expenses
$9,400,000
11/8/01
$60,000
9/21/01
$110,000
9/21/01
$1,530,000
9/21/01
Financial Crimes Enforcement Network
Financial Management Service
Salaries and Expenses
Bureau of Alcohol, Tobacco, and Firearms
Salaries and Expenses
67
Support the immediate response and recovery needs of the
approximately 1,000 Treasury employees who were located
in or near the World Trade Center complex, most of whose
offices were destroyed. These funds will also be used to
establish a Foreign Terrorist Assets Tracking Center, as well
as fund Customs Service air support for counterterrorism
activities. [This general statement was presented as including
IRS as well.]
The November 8 allocation provides the necessary
resources for staff facilities, equipment, and other support
for the Air Transportation Stabilization Board, recently
created, in anticipation of appropriations passage for that
purpose. N.B. That funding was not included in the
subsequent supplemental appropriation.
Unless otherwise noted, the information on the table is in communications from the Office of Management and Budget, with a cover
letter from President George Bush to the Speaker of the House of Representatives, dated Sept. 21, 2001 (Estimate No. 15) and Sept.
28, 2001 (Estimate No. 17), dated Oct. 5, 2001 (Estimate No. 18), Nov. 5, 2001 (Estimate No. 21), Nov. 8, 2001 (Estimate No. 22),
and Nov. 30, 2001 ( Estimate No. 23), as required under P.L. 107-38 [http://w3.access.gpo.gov/usbudget/fy2002/amndsup.html].
CRS-44
Emergency Response Fund Allocations
Account
Allocation
Date
Purpose
The November 5 allocation for the Customs Service is to
support 100 State-activated National Guard troops for three
months to enhance security and expedite U.S. Customs
Service checks at U.S.-Canadian ports of entry.
U.S. Customs Service
Salaries and Expenses
$21,000,000
9/21/01
Salaries and Expenses
$2,337,000
11/5/01
Operation, Maintenance, & Procurement
Air & Marine Interdiction Programs
$14,700,000
9/21/01
Processing, Assistance, and Management
$1,920,000
9/21/01
Response funding: security, grief counseling, overtime,
travel, mail and telephone operations
Tax Law Enforcement
$2,170,000
9/21/01
Response and Recovery funding: security expenses,
investigative, replacement of destroyed office equipment,
automobiles, overtime, travel, and per diem.
Information Systems
$450,000
9/21/01
Response and Recovery funding: overtime, reimbursement
for police protection, wiring of temporary locations, replace
destroyed data infrastructure and equipment, installation
hardware.
U.S. Secret Service
Salaries and Expenses
$36,714,000
11/30/01
Includes resources for increased overtime and travel for
Secret Service officers and agents.
Internal Revenue Service68
68
IRS document provided to CRS by IRS Office of Legislative Affairs, Oct. 4, 2001, details the purpose of the funds.
CRS-45
Emergency Response Fund Allocations
Account
Allocation
Date
Purpose
$175,000,000
11/05/01
These resources include: $100 million for an initial purchase
of irradiation equipment to sanitize the mail; and $75 million
for the costs of personnel protection equipment (e.g., gloves,
masks, barrier creams), first response/environment testing
kits and services, site clean-up and medical goods and
services, and public education materials.
$500,000
9/21/01
Install protective window film for Executive Office of the
President
$6,688,000
9/28/01
Relocation of Eisenhower Executive Office Building
personnel and other security needs
$25,537,000
10/5/01
To support the establishment of the Office of Homeland
Security and for other security-related purposes. According
to staff at the Office of Management and Budget, $25 million
will go to the Office of Homeland Security and $537,000
will go to the Office of the U.S. Trade Representative.
U.S. Postal Service
Payment to the Postal Service Fund
Executive Office of the President
Office of Administration
Salaries and Expenses
CRS-46
Emergency Response Fund Allocations
Account
Allocation
Date
Purpose
$2,300,000
9/28/01
For use of New York High Intensity Drug Trafficking Areas
task forces to replace destroyed equipment in order to
ensure continued operations.
Salaries and Expenses
$4,800,000
10/5/01
To support the establishment of a NSC Directorate to
Combat Terrorism.
Unanticipated Needs, President
$51,000,000
10/5/01
No explanation except to provide for “other urgent securityrelated activities.”
$8,600,000
9/21/01
Support increased security coverage of federal buildings;
purchase security equipment; structural studies of seven
federal locations affected by the New York City disaster;
overtime and travel costs for law enforcement personnel; and
other security costs.
Federal Drug Control Programs
High Intensity Drug Trafficking Areas
National Security Council (NSC)
General Services Administration
Real Property Activities
Federal Buildings Fund
Total Allocations to Treasury and
General Government Accounts,
as of January 3, 2002
$370,916,000
CRS-47
Table 4. Emergency Supplemental Allocation Request and Enactment
69
Emergency Supplemental Allocation Request and Enactment
Account
Amount
Request
Purpose
Enacted
Department of the Treasury
Departmental Offices
Salaries and Expenses
$9,400,000
$0
To cover administrative expenses related to the Air Transportation
Stabilization Board. The Departmental Offices bureau is responsible for
providing staff, supplies, facilities, and equipment for the Board to
administer the guaranteed loan program for the airline industry
Inspector General for Tax
Administration
$2,032,000
$2,032,000
To enable the Treasury IG for Tax Administration to replace equipment
and offices destroyed by the terrorist attack in New York.
Financial Crimes Enforcement
Network
$1,700,000
$1,700,000
To hire additional financial intelligence support staff and expand its
Secure Compartmentalized Intelligence Facility in response to the
September 11th terrorist attacks. The additional staff will assist the
financial crimes/money laundering component of the investigation into
the World Trade Center and Pentagon attacks.
CRS-48
Emergency Supplemental Allocation Request and Enactment
Account
Amount
Purpose
Request
Enacted
Federal Law Enforcement Training
Center
Salaries and Expenses
$13,846,000
$23,000,000
To enable FLETC to provide basic and advanced training to the law
enforcement community in response to the terrorist attacks. FLETC
anticipates training additional Federal Aviation Administration Sky
Marshals, Immigration and Naturalization Service agents, Border Patrol
inspectors, and other law enforcement personnel.
The conference report stipulates that $9,154,000 is provided for training
costs associated with new hiring by law enforcement agencies.
Federal Law Enforcement Training
Center
Acquisition, Construction
Improvement and Related
Expenses
$0
$8,500,000
Expedite acquisition of architectural and engineering services for the
construction of facilities at Cheltenham, Maryland, training facility.
Financial Management Service
$600,000
$0
Bureau of Alcohol, Tobacco and
Firearms
$31,431,000
$31,431,000
To enable FMS to conduct vulnerability assessments, develop and
maintain Emergency Management, Disaster recovery and Contingency
Plans, and conduct security tests and exercises at all FMS facilities.
For overtime and travel for ATF agents; the replacement of vehicles,
radios, computers, technical equipment and other investigative equipment
lost at World Trade Center offices; additional personnel for terrorism
investigations; and enhancement of ATF’s explosives detection canine
program.
Enacted designates $5,200,000 which may be used for necessary
expenses of site acquisition, construction, operations, maintenance and
repair of the special purpose canine training facilities in Front Royal,
Virginia.
CRS-49
Emergency Supplemental Allocation Request and Enactment
Account
Amount
Purpose
Request
Enacted
U. S. Customs Service
Salaries and Expenses
$107,500,00
0
$392,603,000
To improve and expand airport and aviation security as well as increase
efforts of inspectors at high-risk seaports and land borders. Funding is
also included for the cost of equipment replacement that was destroyed in
the attack.
Availability of $245,505,000 is pending submission of a financial plan
“based upon a comprehensive assessment of the most effective uses of
the Service’s resources...for protection along the Northern Border ,
Southwest Border, and at critical seaports.” Not less than $10,000,000
is designated for the Southwest Border; $18,300,000 for a commercial
backup data facility; and $21,300,000 to support overseas initiatives to
counter money laundering such as that used to finance terrorist or
criminal activity.
U.S. Customs Service
Operation, Maintenance and
Procurement, Air and Marine
Interdiction Programs
$6,700,000
$6,700,000
To support increased air security necessary since September 11, 2001.
Internal Revenue Service
Processing, Assistance, and
Management
$16,658,000
$12,990,000
To enable IRS to replace equipment and offices destroyed in New York
City. It will also fund customer service to help taxpayers impacted by the
attack, and enhance security at critical IRS facilities.
Internal Revenue Service
Tax Law Enforcement
$4,544,000
$4,544,000
To enable IRS to replace equipment and offices destroyed and to increase
its participation in investigative activities to combat terrorism
Internal Revenue Service
Information Systems
$15,991,000
$15,991,000
To enable IRS to replace equipment destroyed and to ensure the
continued protection of the nation’s taxpayer data.
CRS-50
Emergency Supplemental Allocation Request and Enactment
Account
U.S. Secret Service
Amount
Purpose
Request
Enacted
$104,769,00
0
$104,769,000
For overtime and travel for Secret Service agents; the replacement of
vehicles, radios, computers, technical equipment, and protective
equipment lost at World Trade Center offices; additional personnel;
technical equipment and training for terrorism detection, investigations,
and preparedness; and additional security measures for the White House.
$0
$500,000,000
To enable the Postal Service to protected postal employees and postal
customers from exposure to biohazardous materials, to sanitize and
screen the mail, and to replace or repair Postal Service facilities
destroyed or damaged in New York City as a result of the September
11,2001 terrorist attacks. No funds may be used to sanitize mail until
USPS submits to Congress an emergency preparedness plan to combat
the threat of biological and chemical substances in the mail.
$50,040,000
$50,040,000
To enable the Executive Office of the President to meet additional
requirements in response to the September 11 terrorists attacks and to
ensure the continuity of support and services to the President and Vice
President of the United States.
Note: The text of H. Rept. 107-350 in the Congressional Record shows
$126,512,000 being appropriated. However, the explanatory remarks
show $50,040,000. Since $126,512,000 is the amount for the next
account, it is assumed that was a typographical error.
U.S. Postal Service
Payment to the Postal Service Fund
Executive Office of the President
Office of Administration
Salaries and Expenses
CRS-51
Emergency Supplemental Allocation Request and Enactment
Account
Amount
Purpose
Request
Enacted
$200,500,00
0
$126,512,000
General Services Administration
Real Property Activities
Federal Building Fund
To increase security services nationwide at federal buildings, for
replacement space costs in New York City, for additional security
equipment nationwide, and other security costs.
National Archives and Records Administration
Operating Expenses
$4,818,000
$1,600,000
For additional guard services at NARA-owned facilities.
Repairs and Restoration
$2,180,000
$1,000,000
For building security upgrades at NARA-owned facilities, including
entrance barriers, magnetometers, and security cameras.
Total for accounts covered under
P.L. 107-67
$572,709,00
0
$1,283,412,00
0
Table 4 Sources:
Request: U.S. Office of Management and Budget, Estimate #19--Emergency Supplemental (Emergency Supplemental Appropriations Act for Recovery
from and Response to Terrorist Attacks on the United States, FY 2001)--10/17/01. [http://w3.access.gpo.gov/usbudget/fy2002/amndsup.html], visited
Jan. 2, 2002.
Enacted: “Conference Report on H.R. 3338, Department of Defense Appropriations Act, 2002,” Congressional Record, daily edition, vol. 147, Dec. 19,
2001, H. Rept. 107-350. See “Division B—Transfers from the Emergency Response Fund Pursuant to Public Law 107-38" pp H10503, at H1053010532 (for provisions) and H10816-H10817 (for explanatory language). As of Jan. 2, 2002, the legislation was pending presidential approval.
CRS-52
Federal Personnel Issues
Pay
General. Under the Federal Pay Comparability Act of 1990 (FEPCA), federal
white collar employees, paid under the General Schedule and related salary systems,
are to receive annual adjustments based on two separate mechanisms. The first is the
adjustment to base pay which is based on changes in private sector salaries as
reflected in the Employment Cost Index (ECI). The rate of pay adjustment is
supposed to be the percentage rate of change in that element of the ECI, minus .5.
For January 2002, the base pay adjustment is 3.6%.
The President’s budget proposes a federal civilian pay increase of 3.6% in
January 2002.70 However, the proposal does not indicate how the pay increase would
be split between basic pay and locality-based payments for the General Schedule and
related pay systems. The FY2002 budget resolution (H.Con.Res. 83) as agreed to in
the House March 28, 2001 and in the Senate April 6, 2001, expresses the sense of the
Congress that there should be parity between military and civilian pay adjustments.
President Bush recommended a 4.6% increase in military pay. The President did not
submit an alternative plan by the end of August, which would indicate that the
national General Schedule pay adjustment will be at the mandated ECI level of 3.6%.
The deadline for an alternative plan related to locality based payments was the end of
November.
P.L. 107-67 provides for a General Schedule increase of 4.6%. On July 17, the
House Committee adopted an amendment which would bring the FY2002 civilian pay
raise to $4.6%. On July 25, the House, in adopting the rule (H.Res. 206) and
subsequently passing H.R. 2590, provided $27.9 million for partial costs associated
with the 4.6% increase. S. 1398, as introduced, would fund the pay increase at 4.6%.
(See also, CRS Report RL30744, Federal Pay: FY2002 Salary Adjustment, and CRS
Report 94-971, Pay and Retirement Benefits for Federal Employees: Increases Since
1969).
Executive Order 13249, signed December 28, 2001, sets out the pay schedules.
It establishes an average 4.6% pay increase for the General Schedule. All employees
receive the 3.6% base pay adjustment. The locality-based comparability payments
bring the net increases up by about 1% on average. The net adjustments range from
4.52% to 5.42%, with the Washington, D. C. area General Schedule employees
receiving a 4.77% increase.
Federal Wage System. The Federal Wage System (FWS) is designed to
compensate the federal blue collar, or skilled labor, force at rates prevailing in local
wage areas for like occupations. If the statutory system were allowed to be managed
as planned, the wage rates and the rates of adjustment in the over 130 wage areas
would vary, according to the labor costs and compensation in the private sector. For
the last several years, Congress has limited the rates of adjustment, based on the rates
70
FY2002 Budget, Analytical Perspectives, p. 139.
CRS-53
of adjustment for the General Schedule.71 Part of the rationale for that decision is
that, in certain high costs areas, some FWS wages would exceed the salaries paid to
General Schedule supervisors. Wages in lower cost areas will be allowed to increase
according to the findings of the wage surveys but the high cost area wages will be
capped.
The House committee, expressing
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