[DOCID: f:hd018.110]
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110th Congress, 1st Session - - - - - - - - - - - - - House Document 110-18
A REQUEST FOR BUDGET AMENDMENTS FOR FISCAL YEAR 2008
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A REQUEST TO CANCEL $3.1 BILLION OF FUNDING FROM LOWER-PRIORITY FEDERAL
PROGRAMS AND EXCESS FUNDS--RECEIVED MARCH 12, 2007
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
March 12, 2007.--Message and accompanying papers referred to the
Committee on Appropriations and ordered to be printed
The White House,
Washington, March 9, 2007.
Hon. Nancy Pelosi,
Speaker of the House of Representatives,
Washington, DC.
Dear Madam Speaker: I ask the Congress to consider the
enclosed FY 2007 request to cancel $3.1 billion of funding from
lower-priority Federal programs and excess funds. This request
would offset fully the funds needed to address the $3.1 billion
FY 2007 funding shortfall for the Department of Defense to
implement the recommendations of the 2005 Base Realignment and
Closure Commission. The proposed cancellations would affect the
Departments of Agriculture, Commerce, Education, Energy, Health
and Human Services, Housing and Urban Development, the
Interior, and Transportation, as well as the Corps of
Engineers.
The details of this request are set forth in the enclosed
letter from the Director of the Office of Management and
Budget.
Sincerely,
George W. Bush.
[Estimate No. 2, 110th Cong., 1st Sess.]
Executive Office of the President,
Office of Management and Budget,
Washington, DC, March 9, 2007.
The President,
The White House.
Submitted for your consideration is an FY 2007 request to
cancel $3.1 billion of funding from lower-priority Federal
programs and excess funds. These proposals would offset fully
funds needed to address the $3.1 billion FY 2007 funding
shortfall for the Department of Defense (DOD) to implement the
recommendations of the 2005 Base Realignment and Closure (BRAC)
Commission. These funds are necessary for DOD to continue
scheduled redeployments of military personnel and their
families from overseas stations to the United States and
support the training, mobilization and deployment of military
forces in support of the Global War on Terror. In addition,
these funds are required to maintain the legislated schedule
for BRAC realignments and closures, which is important to
communities that have already made specific plans and
commitments.
As described below and in more detail in the enclosures,
the cancellation proposals include the following:
Department of Agriculture
$245.3 million from the Department of Agriculture, which
includes $39.6 million from the Rural Business Enterprise
Grants of the Rural Business and Cooperative Service; $50.0
million from the Foreign Agricultural Service Trade Adjustment
Assistance; $130.0 million from the Hatch Act formula grant
program; and $25.7 million from the High Energy Cost Grants
program.
Department of Commerce
<bullet> $79.1 million from the Advanced Technology
Program.
Department of Education
<bullet> $891.7 million from the Department of Education,
which includes $65.0 million to eliminate the Leveraging
Educational Assistance Partnership program; $381.0 million to
reduce funding for Career and Technical Education State Grants;
$104.8 million to eliminate Tech-Prep State Grants; $272.3
million to eliminate the Enhancing Education Through Technology
State Grants program; and $68.7 million to reduce funding for
Even Start.
Department of Energy
<bullet> $200.0 million of excess funding from the
Environmental Management program.
Department of Health and Human Services
<bullet> $118.0 million from the Centers for Disease
Control and Prevention, which includes $68.0 million from a
duplicative block grant and $50.0 million from buildings and
facilities activities.
Department of Housing and Urban Development
<bullet> $740.0 million of excess funding from the
Community Development Block Grant program.
Department of the Interior
<bullet> $77.3 million of excess funding from the
Department of the Interior, which includes $49.3 million from
the Bureau of Indian Affairs' Education Construction program
and nearly $28.0 million from the Land and Water Conservation
Fund State Grants program.
Department of Transportation
<bullet> $677.0 million from the Department of
Transportation, which includes $121.0 million from Operating
Subsidy Grants to the National Railroad Passenger Corporation
and $272.0 million from Capital Grants to the National Railroad
Passenger Corporation. Also included is a request to cancel
$284.0 million of available contract authority from the Airport
Improvement Program.
Corps of Engineers--Civil Works
<bullet> $50.0 million from lower-priority programs in the
Corps of Engineers Investigations account.
Recommendation
I have carefully reviewed these proposals and am satisfied
that they are necessary at this time. Therefore, I join the
heads of the affected departments and agencies in recommending
that you transmit this request to the Congress.
Sincerely,
Rob Portman.
Enclosures.
DEPARTMENT OF AGRICULTURE
Cooperative State Research, Education, and Extension Service
RESEARCH AND EDUCATION ACTIVITIES
Of the funds made available under this heading pursuant to
Public Law 110-5, $130,000,000 are cancelled.
The proposal would cancel $130.0 million from the Hatch Act
formula grant program, which provides funding to land grant
universities. While Public Law 110-5 eliminated $166 million of
earmarks, it increased the Hatch Act formula grant by $146
million (82 percent over the President's FY 2007 Budget
request). The Administration has consistently emphasized that
funding through peer-reviewed competitive research programs
generates the highest quality research, and therefore believes
that providing significant amounts of additional funding to
statutorily-derived formula programs is not the most effective
use of taxpayer dollars.
------
DEPARTMENT OF AGRICULTURE
Rural Development Programs
RURAL COMMUNITY ADVANCEMENT PROGRAM
Of the funds made available under this heading pursuant to
Public Law 110-5, $39,600,000 are cancelled.
The proposal would cancel $39.6 million from the Rural
Business Enterprise Grants of the Department of Agriculture's
(USDA's) Rural Business and Cooperative Service. The program
provides grants to public bodies, nonprofits, and tribal groups
to support development of small businesses in rural
communities. The proposed cancellation would eliminate funding
for a program that is duplicative of many other grant programs
within USDA and the Federal Government.
------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
HIGH ENERGY COST GRANTS
Of the funds made available under this heading pursuant to
Public Law 110-5, $25,740,000 are cancelled.
The proposal would cancel $25.7 million from the High
Energy Cost Grants program of the Department of Agriculture's
Rural Utilities Service (RUS). The program provides grants for
areas where the cost to deliver energy is significantly higher
than the national average. The proposed cancellation is
possible because there is nearly $18 million in carryover
balances to cover needs in FY 2007. In addition, those eligible
for grants are also eligible for low-cost electric loans
through RUS.
------
DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
Of the funds made available for fiscal year 2007 in section
298 of Title II of the Trade Act of 1974, as amended by Public
Law 107-210, $50,000,000 are cancelled.
The proposal would cancel $50.0 million from the Foreign
Agricultural Service Trade Adjustment Assistance (TAA) for
Farmers program. The TAA for Farmers program provides technical
and financial assistance for agricultural producers and
fishermen who suffer lower prices due to imports. The proposed
cancellation is possible because applications for TAA for
Farmers have fallen drastically below expected levels.
------
DEPARTMENT OF COMMERCE
National Institute of Standards and Technology
INDUSTRIAL TECHNOLOGY SERVICES
Of the funds made available under this heading pursuant to
Public Law 110-5, $79,077,650 are cancelled.
The proposal would cancel $79.1 million from the Advanced
Technology Program (ATP). No funding for new starts was
provided in FY 2006, and initial appropriations action for FY
2007 would have provided no further funding for the program.
ATP is a grant program for businesses that was intended to
develop new technologies for commercial use. Given the growth
of venture capital and other financing sources for high-tech
projects, the program is no longer warranted in today's
research and development environment. Large shares of ATP
funding have gone to major corporations, and past Government
Accountability Office studies found that projects often have
been similar to those conducted by firms not receiving such
subsidies. ATP subsidizes research that should be funded by
private industry, which has the means and incentive for these
research investments.
------
DEPARTMENT OF EDUCATION
Office of Elementary and Secondary Education
EDUCATION FOR THE DISADVANTAGED
Of the funds made available under this heading pursuant to
Public Law 110-5, $68,700,000 are cancelled.
Of the $7.2 billion made available July 1, 2007 in this
account, $68.7 million would be cancelled from the Even Start
program. Sufficient funds would remain to fund Even Start
continuation awards.
------
DEPARTMENT OF EDUCATION
Office of Elementary and Secondary Education
SCHOOL IMPROVEMENT PROGRAMS
Of the funds made available under this heading pursuant to
Public Law 110-5, $272,250,000 are cancelled.
The proposal would cancel $272.3 million from this account
to eliminate the Enhancing Education Through Technology State
Grants program. This program supports funding for States and
local school districts to use technology to improve instruction
and student learning. While educational technology may have a
positive impact on student achievement, schools can use other
Education program funding to support technology uses, including
Title I Grants to Local Educational Agencies and Teacher
Quality State Grants. This cancellation is consistent with
proposals to terminate this program in the President's FY 2007
and FY 2008 Budgets.
------
DEPARTMENT OF EDUCATION
Office of Vocational and Adult Education
VOCATIONAL AND ADULT EDUCATION
Of the funds made available under this heading pursuant to
Public Law 110-5, $485,755,000 are cancelled.
Of the $485.8 million proposed for cancellation, $381.0
million would come from Career and Technical Education (CTE)
State Grants, which was funded at $1.2 billion in FY 2006. CTE
State Grants provides grants to States to support high schools
and community college activities related to vocational and
technical education. The proposed cancellation is possible
because States have already received a $791 million advance
appropriation for expenses in the 2007-2008 school year.
In addition, $104.8 million would be cancelled for Tech-
Prep State Grants, which was funded at $105 million in FY 2006.
The Tech-Prep State Grants program supports partnerships that
develop structural links between secondary schools and
postsecondary institutions to integrate academic and vocational
education. The populations served and services provided under
this program are duplicative of the much larger Career and
Technical Education State Grants program.
------
DEPEPARTMENT OF EDUCATION
Office of Federal Student Aid
STUDENT FINANCIAL ASSISTANCE
Of the funds made available under this heading pursuant to
Public Law 110-5, $64,986,570 are cancelled.
The proposal would cancel $65.0 million from the Student
Financial Assistance account to eliminate the Leveraging
Educational Assistance Partnership program. The Performance
Assessment Rating Tool analysis determined this program had not
demonstrated results. State grant levels have expanded greatly
over the years, and most States significantly exceed the
statutory matching requirements. State matching funds in the
academic year 1999-2000, for example, totaled nearly $1
billion, or more than $950 million over the level generated by
a dollar-for-dollar match. The program would be terminated,
consistent with proposals in the President's FY 2007 and FY
2008 Budgets.
------
DEPARTMENT OF ENERGY
Environmental and Other Defense Activities
DEFENSE ENVIRONMENTAL CLEANUP
Of the funds made available under this heading pursuant to
Public Law 110-5, $200,000,000 are cancelled.
The proposal would cancel $200.0 million from the
Environmental Management program. The program's mission is to
clean up radioactive and hazardous waste at Department of
Energy sites that supported the development and production of
nuclear weapons. The program's FY 2007 plans reflect
significantly reduced requirements due to the completion of the
Rocky Flats site (Colorado) in FY 2006. The additional
resources provided by P.L. 110-5 cannot be effectively spent in
the remaining months of FY 2007.
------
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Disease Control and Prevention
DISEASE CONTROL, RESEARCH, AND TRAINING
Of the funds made available under this heading pursuant to
Public Law 110-5, $118,000,000 are cancelled.
Of the $118.0 million proposed for cancellation, $68.0
million would come from the Disease Control, Research, and
Training account because it duplicates existing categorical
grants, and does not have performance metrics. This proposal is
consistent with the President's FY 2007 and FY 2008 Budgets.
Existing categorical grants will continue to support chronic
disease prevention activities throughout the Nation.
In addition, $50.0 million would be cancelled from the
Centers for Disease Control and Prevention (CDC) buildings and
facilities, to allow for a more sustainable funding path for
this activity. CDC will still be able to make substantial
improvements to agency facilities and will be able to support
routine maintenance and improvement activities within available
resources.
------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Community Planning and Development
COMMUNITY DEVELOPMENT FUND
Of the funds made available under this heading pursuant to
Public Law 110-5, $740,000 are cancelled.
The proposal would cancel $740.0 million from the Community
Development Block Grant (CDBG) program. This program was
proposed to be reduced in the President's FY 2007 and FY 2008
Budgets, and P.L. 110-5 provides funding significantly above
these requests. The current CDBG program is not well-targeted
and program results have not been adequately demonstrated or
reported. The Administration continues to support CDBG
legislative reforms, similar to the CDBG Reform Act, which was
transmitted to the Congress in May 2006.
------
DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
CONSTRUCTION
Of the funds made available under this heading pursuant to
Public Law 110-5, $49,346,000 are cancelled.
The proposal would cancel $49.3 million from the Bureau of
Indian Affairs (BIA) Education Construction program. The
program provides safe and functional schools and dormitories
through replacement of buildings or improvement and repair
projects. Approximately 46,000 Indian students attend 184 BIA-
funded schools in Indian communities located in 23 States. The
proposal cancels funding provided by the Congress above the
President's FY 2007 Budget request and is not identified with
specific projects. The proposed cancellation would allow BIA
time to catch up on previously funded school construction
projects. The program has had difficulty absorbing funding
increases and managing projects during the past several years.
------
DEPARTMENT OF THE INTERIOR
National Park Service
LAND ACQUISITION AND STATE ASSISTANCE
Of the funds made available under this heading pursuant to
Public Law 110-5, $27,995,000 are permanently cancelled.
The proposal would cancel $28.0 million from the Land and
Water Conservation Fund State grants program in the National
Park Service. The program provides grants to States for land
acquisition and improvements to State and local parks. No funds
for this program were requested in the FYs 2006, 2007, or 2008
President's Budgets on the grounds that paying to improve State
and local parks are decisions better left to State and local
taxpayers. A Program Assessment Rating Tool review found that
this grant program had not been able to measure performance or
demonstrate results. The proposed cancellation would not affect
funds to administer program or prior-year balances that are not
obligated, but have been allocated to the States.
------
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
OPERATING SUBSIDY GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION
Of the funds made available under this heading pursuant to
Public Law 110-5, $121,000,000 are cancelled.
This proposal would cancel $121.0 million from the
Operating Subsidy Grants to the National Railroad Passenger
Corporation. Amtrak carried forward more than $200 million in
operating funds into FY 2007, which is an unusually large
amount. With this available balance, Amtrak should have
adequate working capital reserves so that its actual FY 2007
operating budget would not be substantially affected by a
cancellation. This proposal would further an Administration
reform proposal to force the railroad to operate more like a
business.
------
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL RAILROAD PASSENGER
CORPORATION
Of the funds made available under this heading pursuant to
Public Law 110-5, $272,000,000 are cancelled.
This proposal would cancel $272.0 million from the Capital
Grants to the National Railroad Passenger Corporation. In FY
2007, Amtrak received an appropriation of $772 million for
capital expenses and debt service payments, which incorrectly
implies that repaying Amtrak's debt service is a Federal
responsibility. There is no obligation by the Federal
Government to fund this expense, particularly because Amtrak is
a private corporation that independently decided to take on its
debt. This proposal would eliminate Amtrak's set-aside for debt
service, furthering an Administration reform proposal and
forcing the railroad to operate more like a business.
------
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
GRANTS-IN-AID FOR AIRPORTS
(LIQUIDATION OF CONTRACT AUTHORITY)
(LIMITATION ON OBLIGATIONS)
(AIRPORT AND AIRWAY TRUST FUND)
Notwithstanding section 101 of P.L. 110-5, the limitation
on obligations under this heading shall not exceed
$3,416,000,000.
GRANTS-IN-AID FOR AIRPORTS
(AIRPORT AND AIRWAY TRUST FUND)
(CANCELLATION OF CONTRACT AUTHORITY)
Of the amounts authorized for the fiscal year ending
September 30, 2007 and prior years under sections 48103 and
48112 of title 49, United States Code, $284,000,000 are
cancelled.
The proposal cancels $284.0 million of available contract
authority from the Airport Improvement Program (AlP) and sets
the obligation limitation at $3,416 million for 2007, which is
a reduction of $98.5 million from the level provided in P.L.
110-5. AlP provides grants to airports to address capacity,
safety, and security needs. This cancels a total of $284
million in contract authority, comprised of $185.5 million in
contract authority in excess of the current obligation
limitation provided in P.L. 110-5 as the bill did not cancel
this available contract authority. This also cancels $98.5
million in contract authority as well as reduces the obligation
limitation by the same amount. The obligation limitation
provided in P.L. 110-5 of $3.5 billion was $765 million above
the President's Request for 2007.
------
CORPS OF ENGINEERS--CIVIL WORKS
INVESTIGATIONS
Of the funds made available under this heading pursuant to
Public Law 110-5, $50,000,000 are cancelled.
The proposal would cancel $50.0 million from the Corps of
Engineers Investigations account. This account funds planning,
engineering and design, data collection, interagency
coordination and research. This proposal would allow the
Administration to fund only priority, high-performing projects
and not lower-performing projects that increase the Corps
backlog of projects awaiting construction.
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