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108th Congress, 1st Session - - - - - - - - - - - - - House Document 108-18


 
                REQUESTS FOR FY 2003 BUDGET AMENDMENTS

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

   HIS REQUESTS FOR FY 2003 BUDGET AMENDMENTS FOR THE DEPARTMENTS OF 
 AGRICULTURE, HEALTH AND HUMAN SERVICES, THE INTERIOR, LABOR, AND THE 
   TREASURY; THE CORPS OF ENGINEERS; AS WELL AS THE EQUAL EMPLOYMENT 
        OPPORTUNITY COMMISSION AND THE FEDERAL TRADE COMMISSION

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


   January 8, 2003.--Referred to the Committee on Appropriations and 
                         ordered to be printed
                                           The White House,
                                       Washington, January 7, 2003.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I ask the Congress to consider the 
enclosed requests for Fiscal Year 2003 budget amendments for 
the Departments of Agriculture, Health and Human Services, the 
Interior, Labor, and the Treasury; the Corps of Engineers; as 
well as the Equal Employment Opportunity Commission and the 
Federal Trade Commission.
    The details of these requests are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget. I concur with his comments and observations.
            Sincerely,
                                                    George W. Bush.
                [Estimate No. 1, 108th Cong., 1st Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                   Washington, DC, January 3, 2003.
The President,
The White House.
    Submitted for your consideration are requests for FY 2003 
budget amendments for the Departments of Agriculture, Health 
and human Services, the Interior, Labor, and the Treasury; the 
Corps of Engineers; as well as the Equal Employment Opportunity 
Commission and the Federal Trade Commission.
    As described below and in more detail in the enclosures, 
the requests include the following:
Department of Agriculture (USDA)
    <bullet> $332.8 million is proposed for a new Farm Bill 
Technical Assistance account. This proposal is necessary to 
ensure that adequate resources are available for USDA to 
effectively deliver the fully authorized level of grant funding 
for conservation programs provided in Public Law 107-171, the 
Farm Security and Rural Investment Act of 2002.
    The $332.8 million requested would be fully offset by 
reductions within USDA, as proposed in accompanying amendments.
Department of Health and Human Services (HHS)
    <bullet> $361.3 million is proposed for the Health 
Facilities Construction and Management Fund. This proposal 
would allow the National Institute of Allergy and Infectious 
Diseases to accelerate the construction of specialized 
biosafety laboratories at universities and research 
institutions across the country needed for priority 
bioterrorism and infectious disease research. Further, this 
proposal reflects the revised facilities request for the 
National Institutes of Health (NIH) that would allow NIH to 
fully fund construction of the second phase of the John Edward 
Porter National Neuroscience Research Center in FY 2003.
    The $361.3 million requested would be fully offset within 
HHS by reductions to various accounts, as proposed in 
accompanying amendments.

Department of the Interior (DOI)/Corps of Engineers

    <bullet> $34.0 million is proposed for expenses in DOI 
related to the settlement of a lawsuit with the Sumner Peck 
plaintiffs in Sumner Peck Ranch, Inc. v. Bureau of Reclamation. 
The proposal would provide the first of three $34.0 million 
annual payments to the plaintiffs.
    This proposal would be fully offset by reducing several 
Bureau of Reclamation activities within DOI by $24.0 million. 
The remaining $10.00 million would be provided from funds 
previously requested in the Corps of Engineers for the Delaware 
River Main Channel project, which has been delayed pending 
regulatory approval from the affected States.

Department of Labor

    <bullet> $81.7 million is proposed for the Employment and 
Training Administration (ETA) to finance the implementation of 
the enhanced Trade Adjustment Assistance (TAA) program, as 
amended by the Trade Act of 2002 (P.L. 107-210). The proposal 
is comprised of $60.5 million for National Emergency Grants 
(NEGs) for State administration of health insurance tax credits 
for eligible participants; $16.8 million for increased costs of 
State administration of trade readjustment allowances; and $4.5 
million for increased costs of federal administration of TAA 
certifications and program oversight. An additional $858.3 
million in mandatory funding also is included for TAA training 
and income support benefits as a result of the expansion in 
benefits to which trade-displaced workers are entitled under 
the 2002 Trade Act.
    The discretionary proposal would be fully offset by 
reducing unneeded funds for two activities within ETA by $81.7 
million. These funds had been requested for administrative 
costs of proposals for a temporary extended unemployment 
compensation program and NEGs to address the economic slowdown. 
Congress did provide administrative funding for extended 
unemployment benefits but did not act on the Administration's 
NEG proposal.

Department of the Treasury

    <bullet> $70.0 million is proposed for the IRS to fund the 
first year implementation of the advance payment feature of the 
health insurance tax credit program. The tax credit program was 
included in the Trade Act of 2002 to assist dislocated workers 
with their health insurance premiums.
    This increase would be fully offset within IRS by a 
proposed $70.0 million reduction to the Business Systems 
Modernization account.

Equal Employment Opportunity Commission (EEOC)

    <bullet> $11.6 million is proposed for the EEOC to support 
its enforcement of federal anti-discrimination law, including 
the efficient resolution of its workload of private-sector 
workplace discrimination charges.
    This increase would be fully offset by a proposed reduction 
to the Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC) contingency fund in the Department 
of Agriculture.

Federal Trade Commission (FTC)

    <bullet> $16 million is proposed for the FTC to create a 
centralized, national registry for consumers who choose not to 
receive telemarketing solicitations. This amount would be fully 
offset within the FTC by fees. Consumers will be able to enroll 
in the Do Not Call registry via the Internet or by calling a 
toll-free number. Telemarketers would be required to remove the 
registered numbers from their lists.
    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 the amendments to the Congress.
            Sincerely,
                                  Mitchell E. Daniels, Jr.,
                                                          Director.
                       DEPARTMENT OF AGRICULTURE


                 Natural Resources Conservation Service


                     FARM BILL TECHNICAL ASSISTANCE

FY 2003 Budget Appendix Pages: 124-126
FY 2003 Pending Request: --
Proposed Amendment: $332,832,000
Revised Request: $332,832,000

    (Insert the above heading and the appropriations language 
that follows after the material under the heading 
``Conservation Operations'':)
    For necessary expenses of the Natural Resources 
Conservation Service in providing technical assistance and 
administrative support for programs authorized under subtitle D 
of title XII of the Food Security Act of 1985, $332,832,000, to 
remain available until expended.
    This proposal would provide $332.8 million for technical 
assistance needed to implement the conservation programs 
authorized in Public Law 107-171, the Farm Security and Rural 
Investment Act of 2002. This increase in budgetary resources is 
fully offset by proposed reductions to: U.S. Department of 
Agriculture's (USDA's) Conservation Operations account (-$118.9 
million); a number of mandatory conservation programs (-$147.5 
million); three rural development programs (-$45.0); the Forest 
Land Enhancement Program (-$8.0 million); and the Special 
Supplemental Nutrition Program for Women, Infants, and Children 
(WIC) program (-$13.4 million). These proposed reductions are 
provided in accompanying amendments.
    This proposal is necessary to ensure that adequate 
resources are available for USDA to effectively deliver the 
fully authorized level of grant funding for conservation 
programs provided in the 2002 farm bill.
    In previous years, technical assistance has been funded 
primarily through two sources: (1) a portion of the mandatory 
conservation funding available for farm bill programs, and (2) 
a portion of the discretionary funding provided to the 
Conservation Operations account. The Department of Justice has 
recently determined that USDA is limited in the amount of 
mandatory Commodity Credit Corporation funding it is authorized 
to use for government employees to provide technical 
assistance. This limitation will make it very difficult for 
USDA to fully implement the farm bill conservation programs 
without diverting a significant portion of funding in the 
Conservation Operations account that is not currently devoted 
to farm bill implementation.
    In order to mitigate the situation, this proposal 
establishes a new discretionary Farm Bill Technical Assistance 
account that would include sufficient resources to deliver the 
farm bill conservation programs.
                       DEPARTMENT OF AGRICULTURE


                 Natural Resources Conservation Service


                        CONSERVATION OPERATIONS

FY 2003 Appendix Pages: 124-125
FY 2003 Pending Request: $897,190,000
Proposed Amendment: -$118,914,000
Revised Request: $778,276,000

    This proposal would reduce funding available for technical 
assistance in the Conservation Operations account. In an 
accompanying proposal, the funding would now be requested as 
part of the new Farm Bill Technical Assistance account.
    Currently, the Natural Resources Conservation Service 
spends approximately $150.0 million providing technical 
assistance to support farm bill programs. This funding would 
now be provided in the proposed new Farm Bill Technical 
Assistance account and merged with the other funding the agency 
uses to provide technical assistance for the farm bill 
programs, totaling $332.8 million. Resources remaining in the 
Conservation Operations account would be available for 
established uses, including general conservation planning, soil 
and snow surveys, and plant material centers.
                       DEPARTMENT OF AGRICULTURE


                       Food and Nutrition Service


SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN 
                                 (WIC)

FY 2003 Budget Appendix Page: 178
FY 2003 Pending Request: $4,751,000,000
Proposed Amendment: -$25,000,000
Revised Request: $4,726,000,000

    This proposal would reduce the contingency fund for the WIC 
program by $25.0 million (from $150.0 to $125.0 million). This 
reduction is possible due to lower than anticipated food costs 
in WIC in FY 2003. A $125.0 million contingency fund in FY 2003 
would be sufficient to ensure that WIC can serve all eligible 
persons seeking services.
    Funds from this reduction would be used to offset 
accompanying proposals for the Department of Agriculture 
($13,386,000 for a new Farm Bill Technical Assistance account), 
and for the Equal Employment Opportunity Commission 
($11,614,000 for Salaries and Expenses).
                       DEPARTMENT OF AGRICULTURE


                     TITLE VII--GENERAL PROVISIONS

FY 2003 Budget Appendix Pages: 195-201
FY 2003 Pending Request: --
Proposed Amendment: -$147,532,000
Revised Request: -$147,532,000

    (In the appropriations language under the above heading, 
insert the following new appropriations language after Section 
722:)
    Sec. 723: None of the funds appropriated or otherwise made 
available by this Act shall be used to pay the salaries and 
expenses of personnel to carry out the following programs:
          (a) an environmental quality incentives program 
        authorized by 16 U.S.C. 3839aa et seq. in excess of 
        $595,000,000;
          (b) a ground and surface water conservation program 
        authorized by 16 U.S.C. 3839aa-9 in excess of 
        $38,250,000;
          (c) a water conservation program in the Klamath Basin 
        authorized by 16 U.S.C. 3839aa-9 in excess of 
        $8,118,000;
          (d) a farmland protection program authorized by 16 
        U.S.C. 3838h-i in excess of $85,000,000;
          (e) a grassland reserve program authorized by 16 
        U.S.C. 3838n-q in excess of $72,250,000;
          (f) a wildlife habitat incentives program authorized 

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