US Food and Drug Administration

Foods

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FY 2000
Actual
 FY 2001 Appropriation FY 2001 Current Estimate 1/ FY 2002 Estimate 3/

FY 2002 +/-
FY 2001
Current Estimate 4/

Total Program Level2/
Center ($000)
FTE
Field ($000)
FTE

$279,704,000
124,589,000
830
155,115,000
1,556

$285,269,000
125,118,000
880
160,151,000
1,580

$284,641,000
124,842,000
875
159,799,000
1,542

$319,505,000
135,471,000
901
184,034,000
1,620

+ $34,864,000
+ 10,629,000
+ 26
+ 24,235,000
+ 78

Total Budget Authority 2/
Pay Increases
BSE
Imports/Inspections
Patient Safety/AERS
Food Safety
Congressional Earmark

$279,704,000

$285,269,000

$284,641,000

$306,105,000

+ $21,464,000
+ $11,488,000
+ $1,100,000
+ $2,297,000
+ $1,000,000
+ $7,400,000
- $1,497,000

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847,000
157,845,000
5,023,000
273,670,000
1,497,000

1,947,000
160,145,000
6,023,000
281,070,000
0

Total User Fees
Proposed User Fees
  Food Export Cert. 
Imports and Inspections

0

0
0

0

0
0

0

0
0

$13,400,000

5,300,000
8,100,000

+ $13,400,000

5,300,000
8,100,000

1/ Reflects enacted levels adjusted for the 0.22 percent rescission, accounting for $628,000 in the Foods program.
2/ Reflects decrease in base funding from FY 2001 of $324,000, for Human Subject Protection and Bioterrorism.
3/ Pay increases shown on separate line, and not reflected in individual increase areas.
4/ Includes $1,497,000 reduction to a Congressional earmark provided in FY 2001.


Historical Funding and FTE Levels

Fiscal Year

Program Level

Budget Authority

User Fee

Program Level FTE

1998 Actuals

$206,249,000

$206,249,000

0

2,239

1999 Actuals

$235,168,000

$235,168,000

0

2,339

2000 Actuals

$279,704,000

$279,704,000

0

2,386

2001 Current Estimate

$284,641,000

$284,641,000

0

2,417

2002 Estimate

$319,505,000

$306,105,000

$13,400,000

2,521

MISSION

REQUESTED INCREASES

Pay Increase  + $11,488,000

FDA’s request for funds to cover pay cost increases is vital to the Agency because personnel are so essential to accomplishing its mission.  Pay increases have a major impact on FDA because the Agency is more people-intensive than many other government agencies.  Payroll accounts for over 60 percent of the total FDA budget.  This has a significant impact on all activities in FDA, particularly the field.  The costs of the pay increases are necessary to ensure the integrity of the Agency's work for the Foods Program for review of food additive petitions and other premarket activities including dietary supplements, and the field labor force for inspections and compliance functions for foreign and domestic inspections, and import surveillance.

In order to maintain the level of activities carried out in FY 2001, FDA is requesting $40,000,000 million to cover the cost of the FY 2002 pay raise, annualization of the FY 2001 pay raise, anticipated within grade increases, and one extra day of pay.  The Foods Program portion of this increase is $11,488,000.

Bovine Spongiform Encephalopathy (BSE) + $1,100,000 and 5 FTE

Under the Federal Food, Drug, and Cosmetic (FFD&C) Act (Sec. 704), FDA is granted general authority to inspect food establishments, and under FFD&C Act (Sec. 903), the Agency shall be responsible for research relating to foods and cosmetics in carrying out this Act.

BSE, and Chronic Wasting Disease (CWD) both belong to a group of progressive degenerative neurological diseases that are always fatal, known as transmissible spongiform encephalopathies (TSEs).  There are several TSE diseases that affect humans: the most well known is Creutzfeldt-Jakob disease (CJD). Potential products regulated by FDA’s Foods Program that can contain these substances are ruminant protein-containing cosmetic products that are packaged and ready for sale, and bovine-derived materials intended for human consumption as either finished dietary supplement products or for use as ingredients in dietary supplements. FDA will use the increased resources to:

Imports & Inspections + $10,397,000 and 37 FTE (Budget Authority + $2,297,000 and 11 FTE; User Fees + $8,100,000 and 26 FTE)

Under the Federal Food, Drug, and Cosmetic (FFD&C) Act (Sec. 704), FDA is granted general authority to inspect food establishments; under FFD&C Act (Sec. 903), the Agency shall be responsible for research relating to foods and cosmetics in carrying out this Act; and, under FFD&C Act (Sec. 801 and 803), the Agency shall assess potentially violative imports, enhance the safety of imported products through surveillance at the border, and provide that source country quality systems/standards/audits conform to the requirements of the FFD&C Act.  

Budget Authority

FDA is responsible for ensuring the safety of products produced and distributed by more than 60,000 domestic establishments. The Agency uses its inspectional authority, as directed by statute, to provide this assurance.  FDA is requesting additional resources to:

Proposed User Fees

FDA is also responsible for ensuring the safety of over six million import line entries that cross our borders annually. This will grow to 7 million in FY 2001.  The sources of these entries are diversified and include increasingly more products from countries that are typically categorized as emerging economies, with emerging regulatory infrastructures.

FDA proposes to collect $8,100,000 in additive import user fees within the Foods program to fund the Operational and Administrative System for Import Support (OASIS), and other import work.   The OASIS system enables FDA to substantially reduce the risk of potentially harmful foods and other imported products reaching the American marketplace.  The importer/broker community benefits through faster turn-around times, elimination of large volumes of paperwork, and reduced costs of doing business.   OASIS will give FDA staff access to historical information to better target products and firms at high risk, the ability to plan inspections more effectively, and the ability to share findings from inspection and lab analyses with other offices.   With the additional resources, FDA will:

Patient Safety/AERS + $1,000,000 and 4 FTE

Under the Federal Food, Drug, and Cosmetic (FFD&C) Act (Sec. 903), the Agency shall be responsible for research relating to foods and cosmetics in carrying out this Act, as well as having primary regulatory responsibility for ensuring the safety of ingredients used in dietary supplements.

FDA currently uses several post-marketing surveillance systems for both mandatory and voluntary adverse event reporting associated with foods, cosmetics and dietary supplements.  These systems are not optimal because they operate independently and data is not easily shared.  Further, the need to share data with other FDA programs is critical for determining if action is needed, particularly with dietary supplements where adverse events are often reported through the Human Drugs Program.   FDA will apply the requested funding to:

Food Safety  + $12,700,000 and 58 FTE (Budget Authority + $7,400,000 and 35 FTE; User Fees  + $5,300,000 and 23 FTE)

Under the Federal Food, Drug, and Cosmetic (FFD&C) Act (Sec. 704), FDA is granted general authority to inspect food establishments and under FFD&C Act (Sec. 903), the Agency shall be responsible for research relating to foods and cosmetics in carrying out this Act.

Budget Authority

FY 2002 will mark the fifth year of the highly successful multi-agency Food Safety Initiative (FSI) to control and reduce food borne pathogens in the American food supply.  The benefits of this investment are clear: an overall decline of 16 percent in food borne illnesses in America.  For certain of the most dangerous pathogens, the reductions are even more pronounced.  For example, E. coli 0157:H7 and Campylobacter fell by 26 percent, Shigella by 44 percent, Salmonella enteritidis by 48 percent, and Cyclospora by 70 percent.

The FY 2002 FSI Strategic Plan overall goal is to protect public health by significantly reducing the prevalence of pathogens, and expanding coverage to pesticides and chemical contaminant hazards, thereby reducing acute and chronic illnesses and injuries through science-based and coordinated regulation, inspection, enforcement, research, and education programs.  In support of this effort, FDA will devote its increased resources to the following activities:

Proposed User Fee
Food Export Certificates

JUSTIFICATION OF BASE

Activities Related to Increases for FY 2002
Payroll

Bovine Spongiform Encephalopathy (BSE)

Imports and Inspections

–10,900 inspections conducted by FDA;
– 4,202 inspections conducted by State contracts; and,
– 1,400 inspections conducted by State partnerships.    

Patient Safety/AERS

Food Safety

Other Activities Related to Priority Areas

Biotechnology

Dietary Supplements

International Activities

Bioterrorism

Premarket Activities  

Selected FY 2000 Accomplishments

Imports

Domestic Inspections

HACCP

Produce

Food Code Adoption

Harmonize Standards for E. coli O157: H7

Risk Communication Education and Training

Premarket Review of Food and Color Additives and Food Ingredients

Nutrition, Health Claims and Labeling

Dietary Supplements

Chemical and Other Contaminants

Leveraging Scientific Expertise

Codex Committees and Working Groups

Emerging Areas

Foods
Program Activity Data

Program Workload and Outputs

FY 2000
Actual

FY 2001
Estimate

FY 2002
Estimate

Food and Color Additives Petitions

Completed

77.0%

50.0%

65.0%

Percentage of overdue Petitions under review 1/

N/A

N/A

N/A

Inspections - FSI by FDA 2/

Non-HACCP Foreign

160

250

250

Non-HACCP Domestic

3,742

6,200

6,300

Seafood HACCP Domestic

2,362

4,700

4,700

Seafood Importer (HACCP)

529

700

700

Inspections - FSI by State Contract 2/

Non-HACCP

3,160

3,660

4,700

Seafood HACCP

546

542

600

Inspections - FSI by State Partnerships 2/

Non HACCP

1,956

1,000

1,000

Seafood HACCP

418

400

400

Seafood Importer HACCP

15

10

10

Total FSI Inspections

Import

689

950

950

Domestic

12,199

16,512

17,710

Field Exams  3/

Import - FDA FSI

8,713

3,650

3,650

Domestic - FDA FSI

81

80

100

Import - FDA Non-FSI

4,448

7,200

7,200

Domestic - FDA Non-FSI

1,363

1,720

2,000

Laboratory Samples Analyzed  4/

Import - FSI

10,565

12,000

12,000

Domestic - FSI

4,777

5,980

6,340

Import - Non-FSI

4,549

9,200

9,200

Domestic - Non-FSI

4,735

7,750

7,750

1/The percentage of Food and Color Additive Petitions Completed is based upon 360 days.  The goals for first action for petitions (FY 2000 and FY 2001) are lower than those achieved in FY 1999 due to the conversion of petitions to notifications in FY 2000.  FDA will establish new baseline numbers for these goals.
2/An inspection is any visit to an establishment during which all or part of one or more phases of that establishment's operation is evaluated against appropriate FDA requirements.
3/Field Exams are the on-site examination of a product that is sufficient in itself to determine that the product is in compliance with FDA requirements.
4/Laboratory samples analyzed are product samples physically analyzed by the laboratory to determine whether or not the product is in compliance with FDA requirements.


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Web page edited by sml 04/30/01