Honorable Mark O. Hatfield
Chairman
Committee on Appropriations
United States Senate
Washington, D.C. 20510

Dear Mr. Chairman:

The purpose of this letter is to provide the Administration's views on H.R. 2127, the Labor, Health and Human Services, Education, and Related Agencies Appropriations Bill, FY 1996, as reported by the Subcommittee. As the Full Committee develops its version of the bill, your consideration of the Administration's views would be appreciated. Because we have not yet seen the Subcommittee bill or report, these views are, necessarily, preliminary.

The Administration is committed to balancing the Federal budget by FY 2005. The President's budget proposes to reduce discretionary spending for FY 1996 by $5 billion in outlays below the FY 1995 enacted level. At the same time, the President s budget increases funding for investment programs, a number of which are included in this bill, that are essential to economic growth and a higher standard of living for all Americans. The Administration does not support the level of funding assumed by the House or Senate Committee 602(b) allocations and urges the Congress to direct more funds to programs in this bill. The Administration supports reducing spending but does not share the priorities reflected in the Subcommittee bill, which is roughly $10 billion below the President's request.

Many of the programs funded in this bill are aimed at protecting and aiding the most vulnerable in our society. While the Subcommittee has restored some funding for these programs relative to the House, reductions proposed by the Subcommittee would have a particularly harmful effect on our Nation's children, our youth, and the disadvantaged by cutting funding for numerous education programs, including Goals 2000, and for training programs, including summer jobs for low-income youth.

For these reasons, discussed more fully below, the President would veto the bill if it were presented to him as reported by the Subcommittee.

Cutting Programs for Pre-School Children

The Administration strongly opposes the Subcommittee's reduction in the Head Start program. This program plays a vital role in preparing disadvantaged young children for school; its expansion should be continued, not reversed. The President would add $400 million and 32,000 new slots to the Head Start program in FY 1996. The Subcommittee, in contrast, would reduce funding by $133 million below the FY 1995 level ($533 million below the President's request). If program quality were to be maintained at such a reduced level, the Subcommittee action would cut between 45,000 and 50,000 children from the program. The Administration strongly urges the Senate to provide FY 1996 funding at the level requested by the President.

Cutting Education Programs

The Administration is pleased that the Subcommittee has supported an increased overall funding level for the Department of Education beyond the levels included in the House bill. Continued support for key programs in the Department of Education is essential for the future growth of our country. However, even with the Subcommittee s increases, the bill reduces spending for Education programs by $3.5 billion below the President's request. Many key programs are cut below the FY 1995 levels and still further below the levels that the Nation's needs call for.

The Administration strongly opposes the Subcommittee's decision to reduce funding for Education programs, including Goals 2000, Title I (Education for the Disadvantaged), and Safe and Drug-free Schools and Communities, by $1.5 billion below the FY 1995 level. At the Subcommittee levels, thousands of schools would not get Federal aid to help them develop educational reforms to improve academic achievement for all students. More than 650,000 children from some of our poorest communities would be denied the assistance they need to benefit from educational reforms and challenging academic standards. And, millions of children would be deprived the opportunity to learn in safe, drug-free schools.

Cutting Programs for Training

The Administration strongly opposes the Subcommittee's elimination of separate funding for the Summer Youth Employment and Training Program. The Subcommittee's action would eliminate the opportunity for as many as 600,000 disadvantaged youth per year to acquire valuable job experience and learn essential job skills. As the President noted when he signed H.R. 1944, the Administration strongly supports this program and will work with the Congress to ensure that the program for the summer of 1996 is funded adequately in the FY 1996 appropriations process.

The Administration is pleased that the Subcommittee has provided modest restorations of the House s drastic reductions to the President's request for the Department of Labor's youth job training programs and the bipartisan school-to-work initiative. Nevertheless, the Subcommittee action would reduce youth training funding (including the Department of Education share of School- to-Work) by 42 percent, or $1.2 billion. Especially when it is more evident than ever that America's youth are not receiving enough opportunities to acquire the job skills necessary to succeed in today's economy, these reductions are unacceptable.

At a time of increased workforce anxiety and major labor market dislocations, the Subcommittee bill would impose unacceptably large reductions in resources to retrain dislocated workers and low-income adults and help them find jobs through One-Stop Career Centers. The bill would reduce funding for dislocated workers and disadvantaged adults financed under the Job Training Partnership Act and for One-Stops by $604 million, or 26 percent, below the FY 1995 comparable level. The bill would cut $1.4 billion, or 48 percent, from the President's request and would deny training and reemployment services to about 500,000 dislocated workers and at least 100,000 low-income adults. While corporate and military downsizing continues to displace hard-working Americans, shrinking these critical services is unconscionable.

Cutting Programs That Help Our Communities

The Administration strongly opposes the Subcommittee's reduction of $62 million for the Corporation for National and Community Service programs funded in this bill. The Subcommittee would cut the Volunteers in Service to America (VISTA) program by 27 percent, reducing the number of VISTA volunteers working to alleviate poverty in low-income communities nationwide. The Subcommittee level also would deny nearly 125,000 older Americans the opportunity to help the homebound elderly, disabled children, and others in their communities. The Administration urges the Senate to provide funding at the requested level.

Cutting Programs That Protect Our Nation's Health

The Administration is concerned that the Subcommittee s mark for programs funded under the Ryan White CARE Act is $67 million less than the $723 million request and that the Subcommittee has eliminated AIDS Education and Training Centers. The funding level proposed by the President for the Ryan White program represents the minimum amount necessary to maintain funding for current and expected grantees while keeping up with increasing AIDS caseloads in States, cities, and local clinics currently receiving Ryan White grants.

The Administration is concerned that the Subcommittee has not provided adequate funding for research supported by the National Institutes of Health (NIH) and urges the Committee to fund NIH at the President s request. The Administration appreciates the Subcommittee s action to preserve the specific appropriation for NIH's Office of AIDS Research as requested by the Director of NIH in the President's budget.

The Administration objects to the Subcommittee's proposed rescission of $53 million for childhood immunization programs, as well as to the $14 million reduction from the President's requested level for FY 1996. States have documented their need for these funds to purchase vaccines. Providing less than the level appropriated in FY 1995 or the amount requested in FY 1996 could impede accomplishment of our shared goal of immunizing a greater percentage of America s children.

The Administration is very concerned about the Subcommittee s $374 million (17 percent) reduction to the President's request for funding of the Substance Abuse and Mental Health Services Administration (SAMHSA). Although funding for mental health and substance abuse demonstration programs has been increased by $212 million above the House level, the money for that restoration has come out of the substance abuse and mental health block grants, as well as from a transfer of $200 million from the Department of Education's Safe and Drug Free Schools program. While the Administration is pleased that the Senate mark restores funding for much of the drug treatment and mental health services to the homeless, the overall 17-percent reduction in SAMHSA funding would seriously undermine the National Drug Control Strategy.

Social Security Administration (SSA) Automation

The Subcommittee bill would reduce the President's request for the Automation Investment Fund by $190 million, from $357 million to $167 million. At the Subcommittee's funding level, nearly half of SSA's field offices would be forced to operate with aging terminals and an antiquated 1970s-style system. This would sharply reduce the quality of service to the Nation's elderly.

Workplace Enforcement

The Administration appreciates the Subcommittee's action to restore some funding for agencies that enforce safety and health and workplace laws. While the additions for some agencies are substantial, most programs still are funded below the FY 1995 level and well below the President's request. The Administration urges the Committee to increase funding for these programs that protect workers' lives, their pensions, and their rights on the job.

Cutting Programs for Individuals with Disabilities

The Subcommittee bill would systematically reduce or eliminate funds available for research, demonstration, training, and technical assistance programs focusing on individuals with disabilities. These programs provide essential support for the State direct service programs and help the Administration and the Congress understand and respond to disability issues.

Abortion

The Administration is pleased that the Subcommittee has deleted objectionable language of the House bill that would change existing law by allowing States to deny Medicaid funding for abortions for victims of rape and incest. The Administration strongly opposes any effort to curtail the ability of poor women to choose abortion in cases of rape or incest. Likewise, we are pleased that the Subcommittee has deleted objectionable House language concerning private accreditation standards for medical residency programs.

Other Language Provisions

The Administration supports the Subcommittee's decision to delete many of the objectionable language provisions included in the House bill, including striker replacement and political advocacy provisions. Many of these riders would seriously impinge upon the Executive Branch's flexibility to manage programs and should not be included in an appropriations bill.

The Administration is pleased that the Subcommittee has removed a provision contained in the House bill that would prohibit funding of the Surgeon General position. We support the Subcommittee in its recognition of the value of the leadership on personal and societal health issues that the Surgeon General provides our Nation.

We look forward to working with the Committee to address our mutual concerns.

Sincerely,
Alice M. Rivlin
Director

Identical Letters Sent to Honorable Mark O. Hatfield, Honorable Robert C. Byrd, Honorable Arlen Specter, and Honorable Tom Harkin

Honorable Robert C. Byrd
Committee on Appropriations
United States Senate
Washington, D.C. 20510

Dear Senator Byrd:

The purpose of this letter is to provide the Administration's views on H.R. 2127, the Labor, Health and Human Services, Education, and Related Agencies Appropriations Bill, FY 1996, as reported by the Subcommittee. As the Full Committee develops its version of the bill, your consideration of the Administration's views would be appreciated. Because we have not yet seen the Subcommittee bill or report, these views are, necessarily, preliminary.

The Administration is committed to balancing the Federal budget by FY 2005. The President's budget proposes to reduce discretionary spending for FY 1996 by $5 billion in outlays below the FY 1995 enacted level. At the same time, the President s budget increases funding for investment programs, a number of which are included in this bill, that are essential to economic growth and a higher standard of living for all Americans. The Administration does not support the level of funding assumed by the House or Senate Committee 602(b) allocations and urges the Congress to direct more funds to programs in this bill. The Administration supports reducing spending but does not share the priorities reflected in the Subcommittee bill, which is roughly $10 billion below the President's request.

Many of the programs funded in this bill are aimed at protecting and aiding the most vulnerable in our society. While the Subcommittee has restored some funding for these programs relative to the House, reductions proposed by the Subcommittee would have a particularly harmful effect on our Nation's children, our youth, and the disadvantaged by cutting funding for numerous education programs, including Goals 2000, and for training programs, including summer jobs for low-income youth.

For these reasons, discussed more fully below, the President would veto the bill if it were presented to him as reported by the Subcommittee.

Honorable Arlen Specter
Chairman
Subcommittee on Labor, HHS,
Education, and Related
Agencies Appropriations
Committee on Appropriations
United States Senate
Washington, D.C. 20510

Dear Mr. Chairman:

The purpose of this letter is to provide the Administration's views on H.R. 2127, the Labor, Health and Human Services, Education, and Related Agencies Appropriations Bill, FY 1996, as reported by the Subcommittee. As the Full Committee develops its version of the bill, your consideration of the Administration's views would be appreciated. Because we have not yet seen the Subcommittee bill or report, these views are, necessarily, preliminary.

The Administration is committed to balancing the Federal budget by FY 2005. The President's budget proposes to reduce discretionary spending for FY 1996 by $5 billion in outlays below the FY 1995 enacted level. At the same time, the President s budget increases funding for investment programs, a number of which are included in this bill, that are essential to economic growth and a higher standard of living for all Americans. The Administration does not support the level of funding assumed by the House or Senate Committee 602(b) allocations and urges the Congress to direct more funds to programs in this bill. The Administration supports reducing spending but does not share the priorities reflected in the Subcommittee bill, which is roughly $10 billion below the President's request.

Many of the programs funded in this bill are aimed at protecting and aiding the most vulnerable in our society. While the Subcommittee has restored some funding for these programs relative to the House, reductions proposed by the Subcommittee would have a particularly harmful effect on our Nation's children, our youth, and the disadvantaged by cutting funding for numerous education programs, including Goals 2000, and for training programs, including summer jobs for low-income youth.

For these reasons, discussed more fully below, the President would veto the bill if it were presented to him as reported by the Subcommittee.

Honorable Tom Harkin
Subcommittee on Labor, HHS,
Education, and Related
Agencies Appropriations
Committee on Appropriations
United States Senate
Washington, D.C. 20510

Dear Senator Harkin:

The purpose of this letter is to provide the Administration's views on H.R. 2127, the Labor, Health and Human Services, Education, and Related Agencies Appropriations Bill, FY 1996, as reported by the Subcommittee. As the Full Committee develops its version of the bill, your consideration of the Administration's views would be appreciated. Because we have not yet seen the Subcommittee bill or report, these views are, necessarily, preliminary.

The Administration is committed to balancing the Federal budget by FY 2005. The President's budget proposes to reduce discretionary spending for FY 1996 by $5 billion in outlays below the FY 1995 enacted level. At the same time, the President s budget increases funding for investment programs, a number of which are included in this bill, that are essential to economic growth and a higher standard of living for all Americans. The Administration does not support the level of funding assumed by the House or Senate Committee 602(b) allocations and urges the Congress to direct more funds to programs in this bill. The Administration supports reducing spending but does not share the priorities reflected in the Subcommittee bill, which is roughly $10 billion below the President's request.

Many of the programs funded in this bill are aimed at protecting and aiding the most vulnerable in our society. While the Subcommittee has restored some funding for these programs relative to the House, reductions proposed by the Subcommittee would have a particularly harmful effect on our Nation's children, our youth, and the disadvantaged by cutting funding for numerous education programs, including Goals 2000, and for training programs, including summer jobs for low-income youth.

For these reasons, discussed more fully below, the President would veto the bill if it were presented to him as reported by the Subcommittee.