49 926

105 th Congress

Report

HOUSE OF REPRESENTATIVES

2d Session

105 648

DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS BILL,

1999

July 24, 1998.--Committed to the Committee of the Whole House on the

State of the Union and ordered to be printed

Mr. Wolf , from the Committee on Appropriations, submitted the

following

REPORT

together with

ADDITIONAL VIEWS

[To accompany H.R. 4328]

The Committee on Appropriations submits the following report in

explanation of the accompanying bill making appropriations for the

Department of Transportation and related agencies for the fiscal year

ending September 30, 1999.

INDEX TO BILL AND REPORT

Page number

Bill

Report

Narrative summary of Committee action

2

Program, project, and activity

5

Title I--Department of Transportation:

Office of the Secretary

2

5

Coast Guard

6

19

Federal Aviation Administration

11

43

Federal Highway Administration

17

80

National Highway Traffic Safety Administration

19

101

Federal Railroad Administration

22

111

Federal Transit Administration

26

122

Saint Lawrence Seaway Development Corporation

35

168

Research and Special Programs Administration

36

169

Office of Inspector General

38

174

Surface Transportation Board

38

174

Title II--Related Agencies:

Architectural and Transportation Barriers Compliance Board

39

176

National Transportation Safety Board

39

176

Title III--General Provisions

40

178

House Report Requirements:

Appropriations not authorized by law

189

Changes in existing law

184

Comparison with budget resolution

189

Constitutional authority

180

Financial assistance to state and local governments

190

Five-year projections of outlays

190

Ramseyer

181

Rescissions

180

Transfers of funds

181

Tabular summary of the bill

192

SUMMARY AND MAJOR RECOMMENDATIONS OF THE BILL

The accompanying bill would provide $13,735,899,900 in new budget

(obligational) authority for the programs of the Department of

Transportation and related agencies, an increase of $276,728,900 above

the $13,459,171,000 requested in the budget. In total, the bill includes

obligational authority (new budget authority, guaranteed obligations

contained in the Transportation Equity Act for the 21st Century (TEA21),

limitations on obligations, and exempt obligations) of $46,891,913,900.

This is $4,767,529,134 more than the comparable fiscal year 1998 enacted

levels and $3,878,791,043 more than the budget request.

Selected major recommendations in the accompanying bill are:

(1) An appropriation of $7,677,558,000 for the Federal Aviation

Administration, an increase of $275,964,000 above the fiscal year 1998

level;

(2) A provision providing for $1,800,000,000 for grants-in-aid for

airports, an increase of $100,000,000 over the fiscal year 1998 level

and the budget request;

(3) An appropriation of $2,700,000,000 for operating expenses of the

Coast Guard, including $406,000,000 for counter-drug activities (an

increase of $40,000,000 or 11 percent) above the fiscal year 1998 level;

(4) An appropriation of $609,230,000 for grants to the National

Railroad Passenger Corporation (Amtrak), to cover capital expenses;

(5) An appropriation of $50,000,000 to complete the construction of

the 103-mile Washington, D.C. metrorail system;

(6) A total of $73,230,900 for the office of the secretary,

$4,993,100 below fiscal year 1998 and $5,175,100 below the budget

request;

(7)Highway program obligation limitations of $25,511,000,000,

consistent with provisions of TEA21, and $4,011,000,000 over fiscal year

1998; and

(8) Transit program obligation limitations of $5,365,000,000

consistent with provisions of TEA21, and $521,262,000 over fiscal year

1998.

THE EFFECT AND IMPLEMENTATION OF THE TRANSPORTATION EQUITY ACT FOR THE

21ST CENTURY

Over the objections of the House and Senate Committees on

Appropriations and the House and Senate Budget Committees, the

Transportation Equity Act for the 21st Century (TEA21) amended the

Budget Enforcement Act to provide two new additional spending categories

or ``firewalls'', the highway category and the mass transit category.

The highway category is comprised of all funding for federal-aid

highways, motor carrier safety programs, highway safety grants, and

highway safety research and development programs. The highway category

obligations are capped at $25,883,000,000 and outlays are capped at

$21,885,000,000 in fiscal year 1999. If appropriations action forces

highway obligations or outlays to exceed these levels, the difference is

charged against the non-defense discretionary spending category.

Likewise, the transit category is comprised of funding for transit

formula grants, transit capital projects, Federal Transit Administration

administrative expenses, transit planning and research programs, and

university transportation research. The mass transit category

obligations are capped at $5,365,000,000 and outlays are capped at

$4,401,000,000 in fiscal year 1999. Any additional appropriated funding

above the levels specified as guaranteed for each transit program in

TEA21 (that which could be appropriated from general funds authorized

under section 5338(h) of TEA21) is charged to the non-defense

discretionary category.

These ``firewalls'' make it virtually impossible for the

Appropriations Committee to make downward adjustments to those funding

levels in the annual appropriations process over the next five years.

This Committee argued that providing large increases for those programs,

and guaranteeing those amounts through firewall mechanisms and points of

order in the House, essentially created mandatory appropriations within

the discretionary caps, which would undermine Congressional flexibility

to fund other equally important programs. As a result, of the

$46,891,913,900 of budgetary resources provided in this bill, nearly 70

percent, is not controlled by annual appropriations Acts but is

predetermined by TEA21. The remaining $14,800,000,000 includes

appropriations and budgetary resources principally for the National

Railroad Passenger Corporation (Amtrak), the U.S. Coast Guard, the

Federal Aviation Administration, the offices of the secretary, the

Research and Special Programs Administration, and a number of smaller

independent agencies. These appropriations are currently controlled by

annual appropriations action.

The Committee has worked hard in this new environment to produce a

balanced bill, which provides adequately for all modes of

transportation. The transportation subcommittee has been allocated a 7.4

percent increase ($2.8 billion) in outlays for the coming fiscal year,

while the non-defense discretionary budget as a whole is at a hard

freeze. Clearly, this increase will cause non-transportation programs

all across the government to be under more severe budget pressures, in

order to keep the overall budget in balance. However, the effect of the

firewalls also leaves its mark on those transportation programs and

activities not covered within the surface transportation

guarantees--most notably the Coast Guard and the Federal Aviation

Administration. Since the highway and transit guarantees consume the

full 7.4 percent increase provided to the Subcommittee, other agencies

in the bill must compete for leftover funding, which is essentially at a

hard freeze. The FAA and the Coast Guard together requested an increase

of almost $600,000,000 in fiscal year 1999 outlays. Although reasonable,

this level of funding is simply not possible because of the firewalls,

resulting in a Committee bill approximately $250,000,000 below the

request for these safety-related agencies. Since the Subcommittee is

required to allocate all of its increased resources to firewalled

programs, these other agencies will continue to feel the budgetary

pressures.

The Committee has done the best it can considering the new firewalls.

However, the Committee is concerned that this new legislation skews

transportation priorities inappropriately, by providing a banquet of

increases to highway and transit spending while leaving safety-related

agencies such as the Coast Guard and FAA to scramble for the remaining

crumbs. In addition, high priority policy initiatives such as increased

funding for drug interdiction could not be fully funded without

offsetting cuts in Coast Guard spending because of the firewalls. The

Committee continues to believe that safety should remain the Federal

Government's highest responsibility in the transportation area. Were it

not for the firewalls, a portion of the generous 7.4 percent increase

could have been allocated to improvements in aviation or maritime

safety, and more could have been done to fight the menace of illegal

drug trafficking, while still providing significant increases in highway

and transit programs. The Committee has also been unable to consider

increases above the guaranteed levels for highways and transit programs,

because it would have required even further reductions in critical FAA

and Coast Guard programs.

TABULAR SUMMARY

A table summarizing the amounts provided for fiscal year 1998 and the

amounts recommended in the bill for fiscal year 1999 compared with the

budget estimates is included at the end of this report.

COMMITTEE HEARINGS

The Committee has conducted extensive hearings on the programs and

projects provided for in the Department of Transportation and Related

Agencies Appropriations Bill for fiscal year 1999. These hearings are

contained in seven published volumes totaling approximately 9,000 pages.

The Committee received testimony from officials of the executive branch,

Members of Congress, officials of the General Accounting Office,

officials of state and local governments, and private citizens.

The bill recommendations for fiscal year 1999 have been developed

after careful consideration of all the information available to the

Committee.

PROGRAM, PROJECT, AND ACTIVITY

During fiscal year 1999, for the purposes of the Balanced Budget and

Emergency Deficit Control Act of 1985 (Public Law 99 177), as amended,

with respect to appropriations contained in the accompanying bill, the

terms ``program, project, and activity'' shall mean any item for which a

dollar amount is contained in an appropriations Act (including joint

resolutions providing continuing appropriations) or accompanying reports

of the House and Senate Committees on Appropriations, or accompanying

conference reports and joint explanatory statements of the committee of

conference. This definition shall apply to all programs for which new

budget (obligational) authority is provided, as well as to capital

investment grants, Federal Transit Administration. In addition, the

percentage reductions made pursuant to a sequestration order to funds

appropriated for facilities and equipment, Federal Aviation

Administration, and for acquisition, construction, and improvements,

Coast Guard, shall be applied equally to each ``budget item'' that is

listed under said accounts in the budget justifications submitted to the

House and Senate Committees on Appropriations as modified by subsequent

appropriations Acts and accompanying committee reports, conference

reports, or joint explanatory statements of the committee of conference.

SAFETY PROGRAMS

In this bill, the Committee has worked hard to protect funding for

essential safety-related programs of the Department of Transportation

and the independent agencies. This has been difficult, but not

impossible, given the budget constraints faced by the Federal Government

this year. In some cases, funds have been added to the administration's

request for safety-related activities. However, if, in the judgment of

departmental officials any of the Committee's recommendations would

significantly harm transportation safety, or if unanticipated safety

needs arise during the course of the appropriations process, the

Committee welcomes discussions with the administration to adjust

individual funding levels and provide the funding needed. The bill also

allows significant flexibility through the reprogramming process, which

requires no further legislative action. The Committee will work with

administration officials to reprogram funds for safety programs if that

should be required.

TITLE I--DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

SALARIES AND EXPENSES

Appropriation, fiscal year 1998\1\ $61,000,000

Budget estimate, fiscal year 1999 61,930,000

Recommended in the bill\2\ (57,979,900)

xlBill compared with:

Appropriation, fiscal year 1998 -3,020,100

Budget estimate, fiscal year 1999 -3,950,100

\1\Excludes reductions of $343,000 for TASC.

\2\Total amount appropriated in separate accounts.

The bill provides a total program level of $57,979,900 for the

salaries and expenses of the various offices comprising the Office of

the Secretary. This year, however, the Committee has not approved the

consolidated appropriations request for the various offices within the

office of the secretary. Specific program recommendations are discussed

in this report under the individual appropriations accounts.

Congressional justifications .--The Committee was displeased with

the untimely submission of the department's fiscal year 1999

congressional justifications. While other executive departments are able

to submit their congressional justifications concurrent with the

official submission of the President's budget to Congress, the

department has not been able to do the same. Therefore, the Committee

directs the department to submit all of the department's fiscal year

congressional justifications on the first Monday in February, concurrent

with the official submission of the President's budget to Congress.

Moreover, the department is directed to submit its fiscal year 2000

congressional justification materials for the salaries and expenses of

the office of the secretary at the same level of detail provided in the

congressional justifications presented in fiscal year 1994.

Staffing levels .--The offices comprising the offices of the

secretary are directed not to fill any positions in fiscal year 1998

that are currently vacant, particularly if such vacancies are proposed

in this Act for elimination in fiscal year 1999 and not to fill those

positions in 1998 unless the statement of managers accompanying the

conference report for this bill specifically references the individual

positions being restored.

The Committee has endeavored to eliminate various positions that the

department had indicated were vacant at the time the Committee was

finalizing its recommendations. It is the intent of the Committee to

avoid any reductions in force and the Committee intends to work with the

department as the final conference report is developed to avoid serious

personnel disruptions.

Travel .--The Committee directs that travel funds appropriated for

offices of the secretary shall not be supplemented with funds from other

elements of the department excluding those related to the use of

military aircraft.

GENERAL PROVISIONS

Limitation on political and Presidential appointees .--The Committee

has included a provision in the bill (sec. 305), similar to provisions

in past Department of Transportation and Related Agencies Appropriations

Acts, which limits the number of political and Presidential appointees

within the Department of Transportation. The ceiling for fiscal year

1999 is 88 personnel, which is 19 below the ceiling enacted in fiscal

year 1998 and the same level as on board at the end of fiscal year 1997.

The Committee notes that the department had only 77 political and

presidential appointees on board this spring, and at no time since 1991

have such positions exceeded 100. The bill specifies that no political

or presidential appointee may be detailed outside the Department of

Transportation.

Advisory committees .--The Committee has continued bill language

that was included in past Department of Transportation and Related

Agencies Appropriations Acts which limit the funds used for advisory

committees of the Department of Transportation. The budget requested

that the limitation be deleted.

IMMEDIATE OFFICE OF THE SECRETARY

Appropriation, fiscal year 1998\1\ ($1,916,300)

Budget estimate, fiscal year 1999\2\ (1,988,800)

Recommended in the bill 1,623,800

xlBill compared with:

Appropriation, fiscal year 1998 -292,500

Budget estimate, fiscal year 1999 -365,000

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Immediate Office of the Secretary has the primary responsibility

to provide overall planning, direction, and control of departmental

affairs. The Committee recommends an appropriation of $1,623,800 for

expenses of the Immediate Office of the Secretary, which represents a

reduction of $292,500 from comparable levels provided for fiscal year

1998, and $365,000 below the budget request. The recommendation assumes

the following staffing and other reductions:

Eliminate 1 staff assistant -$100,000

Eliminate 1 deputy chief of staff -150,000

Disallow printing costs related to Garrett A. Morgan technology and transportation futures program -15,000

Reduction in travel costs -100,000

Eliminate various staff positions .--The Committee recommendation

assumes the elimination of one staff assistant position and one deputy

chief of staff. The Committee believes that these positions can be

eliminated without affecting the core responsibilities, duties and

functions of the department or the office of the secretary. In light of

other downsizing and staff reductions planned by the department and

recommended by the Committee, the office of the secretary should set the

example for the department.

Disallow printing costs related to Garrett A. Morgan technology and

transportation futures program .--The Committee has not provided $15,000

requested to print documents related to the Garrett A. Morgan program, a

program that seeks to encourage minority students to pursue

transportation careers. Funds for this activity are included within the

$200,000 provided to RSPA for the Garrett A. Morgan program in fiscal

year 1999.

Reduction in travel costs .--The Committee recommends that travel

expenses of the immediate office of the secretary be reduced by

$100,000. Travel expenses of this office have increased by almost 70

percent in one year, far in excess of the rate of inflation. Increases

in travel of this magnitude are not justified. The Committee

recommendation will provide a total of $160,000 for travel in fiscal

year 1999, the same level as approved by the Congress in fiscal year

1998. In light of other downsizing and staff reductions planned by the

department and recommended by the Committee, the office of the secretary

should set an example of economy for the department.

IMMEDIATE OFFICE OF THE DEPUTY SECRETARY

Appropriation, fiscal year 1998\1\ ($554,700)

Budget estimate, fiscal year 1999\2\ (595,900)

Recommended in the bill 585,000

xlBill compared with:

Appropriation, fiscal year 1998 +30,300

Budget estimate, fiscal year 1999 -10,900

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Immediate Office of the Deputy Secretary has the primary

responsibility to assist the Secretary in the overall planning,

direction and control of departmental affairs. The Committee recommends

an appropriation of $585,000 for expenses of the office of the deputy

secretary, which represents an increase of $30,300 from comparable

levels provided for fiscal year 1998, and $10,900 below the budget

request. The recommendation assumes a staffing level of 7 full time

equivalent positions and the following reduction:

Reduction in travel costs -$10,900

Reduction in travel costs .--The Committee recommends that travel

expenses of the immediate office of the deputy secretary be reduced by

$10,900. Travel expenses of this office have increased by over 130

percent since 1995 and almost 63 percent since 1996, far in excess of

the rate of inflation. This reduction will provide a total of $15,100

for travel in fiscal year 1999, the same level as provided in fiscal

year 1996. In light of other downsizing and staff reductions planned by

the department and recommended by the Committee, the immediate offices

of the secretary and deputy secretary should set the example of economy

for the department.

OFFICE OF THE GENERAL COUNSEL

Appropriation, fiscal year 1998\1\ ($8,745,800)

Budget estimate, fiscal year 1999\2\ (9,195,000)

Recommended in the bill 8,895,000

xlBill compared with:

Appropriation, fiscal year 1998 +149,200

Budget estimate, fiscal year 1999 -300,000

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Office of the General Counsel provides legal services to the

Office of the Secretary and coordinates and reviews the legal work of

the chief counsels' offices of the operating administrations.

The Committee recommends an appropriation of $8,895,000 for expenses

of the office of general counsel, which represents an increase of

$149,200 from comparable levels provided for fiscal year 1998, and

$300,000 below the budget request. The recommendation assumes the

elimination of 3 attorney advisors (-$300,000).

OFFICE OF THE ASSISTANT SECRETARY FOR POLICY

Appropriation, fiscal year 1998\1\ ($2,795,500)

Budget estimate, fiscal year 1999\2\ (2,767,200)

Recommended in the bill 2,667,200

xlBill compared with:

Appropriation, fiscal year 1998 -128,300

Budget estimate, fiscal year 1999 -100,000

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Assistant Secretary for Policy is the chief domestic policy

officer of the department and is responsible to the Secretary for

analysis, development, communication and review of policies and plans

for domestic transportation issues.

The Committee recommends an appropriation of $2,667,200 for expenses

of the office of the assistant secretary for policy, which represents a

reduction of $128,300 from comparable levels provided for fiscal year

1998, and $100,000 below the level requested in the budget. The

recommendation assumes the elimination of 2 policy analysts (-$100,000).

OFFICE OF THE ASSISTANT SECRETARY FOR AVIATION AND INTERNATIONAL AFFAIRS

Appropriation, fiscal year 1998\1\ ($7,554,300)

Budget estimate, fiscal year 1999\2\ (7,427,200)

Recommended in the bill 7,002,200

xlBill compared with:

Appropriation, fiscal year 1998 -552,100

Budget estimate, fiscal year 1999 -425,000

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Assistant Secretary for Aviation and International Affairs is

responsible for administering economic regulatory functions regarding

the airline industry and provides departmental leadership and

coordination on international transportation policy issues relating to

maritime, trade, technical assistance and cooperative programs.

The Committee recommends an appropriation of $7,002,200 for expenses

of the office of the assistant secretary for aviation and international

affairs, which represents a reduction of $552,100 from comparable levels

provided for fiscal year 1998, and $425,000 below the level requested in

the budget. The recommendation assumes the following staffing

reductions:

Eliminate 4 transportation industry analysts -$300,000

Eliminate 1 special assistant -125,000

OFFICE OF THE ASSISTANT SECRETARY FOR BUDGET AND PROGRAMS

Appropriation, fiscal year 1998\1\ ($6,119,800)

Budget estimate, fiscal year 1999\2\ (6,464,300)

Recommended in the bill 6,069,300

xlBill compared with:

Appropriation, fiscal year 1998 -50,500

Budget estimate, fiscal year 1999 -395,000

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Assistant Secretary for Budget and Programs is responsible for

developing, reviewing and presenting budget resource requirements for

the department to the Secretary, Congress and the Office of Management

and Budget.

The Committee recommends an appropriation of $6,069,300 for expenses

of the office of the assistant secretary for budget and programs, which

represents a decrease of $50,500 from comparable levels provided for

fiscal year 1998, and $395,000 below the budget request. The

recommendation assumes the following reductions:

Disallow increase in reception and representation costs -$20,000

Eliminate 1 staff accountant and 1 program analyst -175,000

General reduction due to budget constraints -200,000

Disallow increases in reception and representation costs .--The

Committee has not provided an increase of $20,000 for additional

reception and representation activities. This request has been rejected

for the past several years. In light of significant staffing reductions

and budget constraints, approving additional appropriations for

reception and representation cannot be justified.

OFFICE OF THE ASSISTANT SECRETARY FOR GOVERNMENTAL AFFAIRS

Appropriation, fiscal year 1998\1\ ($1,873,000)

Budget estimate, fiscal year 1999\2\ (1,940,600)

Recommended in the bill 1,672,000

xlBill compared with:

Appropriation, fiscal year 1998 -201,000

Budget estimate, fiscal year 1999 -268,600

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Office of the Assistant Secretary for Governmental Affairs is

responsible for coordinating all Congressional, intergovernmental, and

consumer activities of the department.

The Committee recommends an appropriation of $1,672,000 for this

office, which represents a decrease of $201,000 from the comparable 1998

level and a decrease of $268,600 from the budget request. The

recommendation assumes a staffing level of 22 full time equivalent

positions, one fewer than provided in fiscal year 1998 and requested in

the budget. The recommendation assumes the following reductions:

Eliminate deputy assistant secretary for governmental affairs -$150,000

General reduction due to budget constraints -100,000

Travel reductions -18,600

OFFICE OF THE ASSISTANT SECRETARY FOR ADMINISTRATION

Appropriation, fiscal year 1998\1\ ($20,137,200)

Budget estimate, fiscal year 1999\2\ (20,213,100)

Recommended in the bill 19,147,100

xlBill compared with:

Appropriation, fiscal year 1998 -990,100

Budget estimate, fiscal year 1999 -1,066,000

\1\Appropriated within the consolidated salaries and expenses account and includes reduction of $343,000 for TASC and carryover of $505,900.

\2\Requested in the consolidated salaries and expenses account.

The Office of the Assistant Secretary for Administration is

responsible for coordinating, overseeing and conducting various

accounting, procurement, personnel management, and ADP operations of the

department.

The Committee recommends an appropriation of $19,147,100 for expenses

of the office of the assistant secretary for administration, which

represents a reduction of $990,100 from comparable levels provided for

fiscal year 1998, and $1,066,000 below the budget request. The

recommendation assumes the following reductions:

Disallow increase in travel expenses -$16,000

Eliminate 3 positions (1 budget analyst, 1 program analyst, 1 procurement analyst) -300,000

Eliminate 10 procurement analysts from the office of acquisition -750,000

Eliminate 3 positions .--The Committee recommendation eliminates

three positions within the office of administration: 1 budget analyst, 1

program analyst, and 1 procurement analyst. These positions are

currently vacant and there does not appear to be any plan to fill them.

Eliminate 10 procurement analysts from the office of acquisition

.--The Committee recommendation reduces by 10 the number of procurement

analysts in the office of acquisition and grants management. While the

Committee once supported the department's intended aggressive initiative

to improve acquisition oversight at the departmental level, the

Committee now questions the value added by limited, informal secretarial

reviews. Over the past years, the FAA, which is responsible for the

majority of the department's major initiatives, has been provided new

acquisition authorities, including greater flexibility and latitude in

its procurement program, and as a result, the administrative offices of

the secretary have little, if any, oversight role.

OFFICE OF PUBLIC AFFAIRS

Appropriation, fiscal year 1998\1\ ($1,746,600)

Budget estimate, fiscal year 1999\2\ (1,752,600)

Recommended in the bill 1,377,600

xlBill compared with:

Appropriation, fiscal year 1998 -369,000

Budget estimate, fiscal year 1999 -375,000

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Office of Public Affairs is responsible for news releases,

articles, fact sheets, briefing materials, publications, and

audio-visual materials of the department.

The Committee recommends an appropriation of $1,377,600 for expenses

of the office of public affairs, which represents a reduction of

$369,000 from comparable levels provided for fiscal year 1998, and

$375,000 below the budget request. The recommendation assumes the

following reductions:

Eliminate public affairs associate director of speechwriting and research -$125,000

Eliminate 2 public affairs specialists -100,000

Eliminate special assistant to the associate director -125,000

Eliminate various positions .--The Committee recommends elimination

of four positions within the office of public affairs. In light of

budget constraints and other government downsizing, public affairs

operations not critical to the department can be reduced without

significantly affecting the core responsibilities of the office of the

secretary.

EXECUTIVE SECRETARIAT

Appropriation, fiscal year 1998\1\ ($1,088,500)

Budget estimate, fiscal year 1999\2\ (1,046,900)

Recommended in the bill 1,046,900

xlBill compared with:

Appropriation, fiscal year 1998 -41,600

Budget estimate, fiscal year 1999

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Executive Secretariat assists the Secretary and Deputy Secretary

in carrying out their management functions and responsibilities by

controlling and coordinating internal and external written materials.

The Committee recommends an appropriation of $1,046,900 for expenses

of the office of the executive secretariat, which represents a reduction

of $41,600 from comparable levels provided for fiscal year 1998, and the

same level as the budget request. The recommendation assumes a staffing

level of 15 full time equivalent (FTE) positions, the same level as the

budget request and a reduction of one FTE from fiscal year 1998.

BOARD OF CONTRACT APPEALS

Appropriation, fiscal year 1998\1\ ($480,700)

Budget estimate, fiscal year 1999\2\ (675,500)

Recommended in the bill 675,500

xlBill compared with:

Appropriation, fiscal year 1998 +194,800

Budget estimate, fiscal year 1999

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Board of Contract Appeals provides an independent forum for

considering all contract-related claims by or against a contractor

involving any element of the department.

The Committee recommends an appropriation of $675,500 for expenses of

the board of contract appeals, which represents an increase of $194,800

from comparable levels provided for fiscal year 1998, and the same level

as the budget request. The recommendation assumes a staffing level of 6

full time equivalent positions, the same level as in fiscal year 1998

and requested in the budget.

OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION

Appropriation, fiscal year 1998\1\ ($1,053,600)

Budget estimate, fiscal year 1999\2\ (909,200)

Recommended in the bill 839,200

xlBill compared with:

Appropriation, fiscal year 1998 -214,400

Budget estimate, fiscal year 1999 -70,000

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Office of Small and Disadvantaged Business Utilization is

responsible for promoting small and disadvantaged business participation

in the department's procurement and grants programs. The Committee

recommends an appropriation of $839,200 for expenses of the office of

small and disadvantaged business utilization, which represents a

reduction of $214,400 from comparable levels provided for fiscal year

1998, and $70,000 below the budget request. The recommendation assumes

the elimination of one financial analyst.

Small business procurements. --The Committee encourages the

department to increase small business procurement opportunities arising

from projects that involve federal funding. Outreach and assistance to

minority, women-owned and disadvantaged businesses should be promoted to

increase participation in the department's procurements. The Committee

recommends that a focused effort be made to increase the opportunity and

participation of small businesses in DOT-related procurements.

OFFICE OF INTELLIGENCE AND SECURITY

Appropriation, fiscal year 1998\1\ ($1,025,000)

Budget estimate, fiscal year 1999\2\ (1,036,100)

Recommended in the bill 961,100

xlBill compared with:

Appropriation, fiscal year 1998 -63,900

Budget estimate, fiscal year 1999 -75,000

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Office of Intelligence and Security was created during fiscal

year 1990 to address transportation intelligence and security issues.

The primary purposes of the office are to provide intelligence and

security oversight of the operating administrations to increase the

safety and security of the traveling public, and to provide the

Secretary and Deputy Secretary with current intelligence and security

information, with special emphasis on potential or actual terrorist

threats to transportation interests.

The Committee recommends an appropriation of $961,100 for expenses of

the office of intelligence and security, which represents a decrease of

$63,900 from comparable levels provided for fiscal year 1998, and

$75,000 below the level in the budget request. The recommendation

assumes elimination of one transportation security specialist.

OFFICE OF THE CHIEF INFORMATION OFFICER

Appropriation, fiscal year 1998\1\ ($4,777,700)

Budget estimate, fiscal year 1999\2\ (4,874,600)

Recommended in the bill 4,400,000

xlBill compared with:

Appropriation, fiscal year 1998 -377,700

Budget estimate, fiscal year 1999 -474,600

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

The Office of the Chief Information Officer serves as the principal

advisor to the Secretary on matters involving information resources and

information systems management, including responsibility over the

Federal Aviation Administration's Year 2000 compliance efforts.

The Committee recommends an appropriation of $4,400,000 for expenses

of the office of the chief information officer, which represents a

reduction of $377,700 from comparable levels provided for fiscal year

1998, and $474,600 below the budget request. The recommendation assumes

a staffing level of 14 full time equivalent positions, the same level as

provided in fiscal year 1998 and requested in the budget. The

recommendation includes $200,000 for tracking, renovation and validation

of the department's Year 2000 efforts and reductions in other services

due to outlay constraints (-$474,600).

OFFICE OF INTERMODALISM

Appropriation, fiscal year 1998\1\ ($1,294,200)

Budget estimate, fiscal year 1999\2\ (1,041,900)

Recommended in the bill 1,018,000

xlBill compared with:

Appropriation, fiscal year 1998 -276,200

Budget estimate, fiscal year 1999 -23,900

\1\Appropriated within the consolidated salaries and expenses account.

\2\Requested in the consolidated salaries and expenses account.

Congress mandated that an office of intermodalism be established

within the office of the secretary in Title V of the Intermodal Surface

Transportation Efficiency Act of 1991. As an organization within the

office of the secretary, the office works on intermodal initiatives

involving multiple operating administrations, and on special projects

assigned to, or by, the associate deputy secretary. Within the

department, the office works with operating administrations through a

partnership approach to problem solving. This approach ensures project

outcomes that are shaped by the policies, programs, and regulatory

interpretations of the operating administrations and the office of the

secretary.

The Committee has provided $1,018,000 for the office of

intermodalism, which represents a reduction of $276,200 from comparable

levels provided for fiscal year 1998 and $23,900 below the budget

request. The recommendation assumes a reduction of $23,900 in travel

expenses, which holds travel to the levels approved in fiscal year 1998.

The Committee notes that an excessive amount of travel to attend

overseas forums has occurred over the past year, despite numerous

vacancies within the office.

OFFICE OF CIVIL RIGHTS

Appropriation, fiscal year 1998\1\ $5,574,000

Budget estimate, fiscal year 1999 6,966,000

Recommended in the bill 6,966,000

xlBill compared with:

Appropriation, fiscal year 1998 +1,392,000

Budget estimate, fiscal year 1999

\1\Excludes reductions of $12,000 for TASC.

The Office of Civil Rights is responsible for advising the Secretary

on civil rights and equal opportunity matters and ensuring full

implementation of civil rights opportunity precepts in all of the

Department's official actions and programs. This office is responsible

for enforcing laws and regulations that prohibit discrimination in

federally operated and federally assisted transportation programs. This

office also handles all civil rights cases related to Department of

Transportation employees.

The Committee recommends an appropriation of $6,966,000 for expenses

of the office of civil rights, which represents an increase of

$1,392,000 from fiscal year 1998 enacted levels and the same level as

the budget request.

TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT

Appropriation, fiscal year 1998\1\ $4,400,000

Budget estimate, fiscal year 1999 4,710,000

Recommended in the bill 3,035,000

xlBill compared with:

Appropriation, fiscal year 1998 -1,365,000

Budget estimate, fiscal year 1999 -1,675,000

\1\Excludes reductions of $8,000 for TASC.

This appropriation finances those research activities and studies

concerned with planning, analysis, and information development needed to

support the Secretary's responsibilities in the formulation of national

transportation policies. The overall program is carried out primarily

through contracts with other federal agencies, educational institutions,

nonprofit research organizations, and private firms.

The Committee recommends $3,035,000 for this appropriation, which

represents a decrease of $1,675,000 below the request and $1,365,000

from the 1998 enacted level. Within the total provided, the recommended

level holds transportation planning and studies to $700,000; provides

the budget request of $1,935,000 for salaries and administrative

expenses; and holds transportation system planning to $400,000. These

levels will permit annualization and other pay-related costs for 15 FTE

and will fully fund all ongoing activities, and will provide nominal

increases for proposed studies and evaluations, albeit below the budget

estimate.

The recommended level also provides $400,000 for the department's

transportation system planning activities, which represents a decrease

of $462,000 from the 1998 enacted level and $770,000 below the budget

request. The recommended level defers funding for continued development

of the electronic grants system, automated coordination, and the FOIA

response system. A requirements analysis study for the FOIA response

system, including costs and benefits, has yet to be completed, and

therefore the need for such a system has not been quantified.

None of the funds provided under this appropriation shall be for

activities related to sustainable transportation.

Within the amounts provided for transportation planning, research and

development, the Committee has included sufficient resources to fund a

collaboration of industry, education, and government entities to develop

a skilled workforce for the transportation industry, provided that total

federal support for this activity not exceed $1,000,000 in total.

TRANSPORTATION ADMINISTRATIVE SERVICE CENTER

Appropriation, fiscal year 1998\1\ ($121,800,000)

Budget estimate, fiscal year 1999\2\ (175,715,000)

Recommended in the bill\3\ (109,124,000)

xlBill compared with:

Appropriation, fiscal year 1998 (-12,676,000)

Budget estimate, fiscal year 1999 (-66,591,000)

\1\In fiscal year 1998, the limitation on transportation administrative service center expenses was reduced by $3,000,000.

\2\Proposed without limitation. Amount reflected is the estimated program level for FY 1999.

\3\In fiscal year 1999, the limitation on transportation administrative service center expenses is also addressed in a general provision (-$20,000,000).

The transportation administrative service center was created in

fiscal year 1997 to provide common administrative services to the

various modes and outside entities that desire those services for

economy and efficiency. The fund is financed through negotiated

agreements with the department's operating administrations and other

governmental elements requiring the center's capabilities.

The Committee agreed to create the transportation administrative

service center in fiscal year 1997 at the department's request. In

agreeing to that request, the Committee limited (1) the activities that

can be transferred to the transportation administrative service center

to only those approved by the agency administrator and (2) special

assessments or reimbursable agreements levied against any program,

project or activity funded in this Act to only those assessments or

reimbursable agreements and the basis for them are presented to and

approved by the House and Senate Committees on Appropriations. These

limitations are continued in fiscal year 1999.

The Committee recommends a limitation of $109,124,000, a decrease of

$12,676,000 from the enacted level and $66,591,000 below the request.

The recommended reductions from the budget request reflect the following

adjustments:

Eliminate the transportation computer center -$15,000,000

Disallow proposed transfer of the National Oceanic and Atmospheric Administration's Office of Aeronautical Charting and Cartography to the TASC -51,591,000

Transportation computer center.-- The conference agreement

accompanying the fiscal year 1998 Department of Transportation and

Related Agencies Appropriations Act directed the department's Inspector

General to evaluate TASC's utility and cost effectiveness both to the

individual operating administrations and the department in general and

determine whether TASC is providing quality services that are responsive

to customer needs at competitive prices. The IG's audit concluded that

TASC generally provides services of utility to its users; however, the

audit also disclosed that several services raised substantive cost

effectiveness issues.

Specifically, the IG determined that the Computer Center is currently

capable of operating at only two-thirds of the level that OMB considers

cost effective. The IG report concluded that this lack of cost

effectiveness correlates closely with customer survey results indicating

that 75 percent of the Computer Center's users expressed dissatisfaction

with the cost competitiveness of the computer center.

The IG also obtained an evaluation report of the computer center

prepared by a DOT consultant. Based upon that report and its own audit,

the IG concluded that computer center does not have the customer base to

operate in a cost effective manner and noted that ``the justification

for continued operation of the computer center is in doubt.''

The Committee's recommendation eliminates the transportation computer

center within the transportation administrative service center and

permits the operating administrations to procure similar services from

other governmental or private providers.

Disallow proposed transfer of the National Oceanic and Atmospheric

Administration's Office of Aeronautical Charting and Cartography to the

TASC.-- The budget proposed that the National Oceanic and Atmospheric

Administration's Office of Aeronautical Charting and Cartography (AC&C)

be transferred from the Department of Commerce and placed within the

TASC. While the department believes that the AC&C product offerings are

closely aligned with the services provided by TASC, the Committee

asserts that the aeronautical charting services ultimately support

aviation safety missions within the FAA, and it is more logical that

these services be performed within the FAA. The Committee recommendation

includes funding for this activity within the FAA's appropriation for

fiscal year 1999. Accordingly, the TASC obligation limitation has been

reduced by $51,591,000 and staff reduced by 379 FTE.

General provision.-- The Committee has included a general provision

which provides that amounts budgeted for the transportation

administrative service center in this bill are reduced, on a pro-rata

basis, to a limitation of $89,124,000. The Committee believes that this

reduction is justified given the significant personnel reductions that

have occurred within the department over the past several years. For

example, the department projects that if staffing adjustments continue

at current rates through the end of fiscal year 1998, the 1998 civilian

full time equivalent (FTE) employment will be about 1,620, or two

percent, below the levels provided for in the fiscal year 1998

Department of Transportation and Related Agencies Appropriations Act. As

such, common administrative expenses like copying, supplies, computer

services, motor pool, parking and transit benefits, and

telecommunications services should be declining and can be accommodated

within the levels provided in this Act.

The Committee is concerned, however, that previous reductions in

obligation authority have not been reflected in reduced billings to the

modal administrations. As such, over the past several years, TASC

charges have not been reduced to correspond to Congressional reductions

and each year the modal administrations have had to absorb sizable

shortfalls in TASC funding. The Committee directs the administrator of

the TASC to develop a mechanism to ensure that the budget approved for

the TASC in this Act corresponds to the appropriations provided to the

modes in this Act. In allocating the reductions recommended in this Act

for the TASC, the administrator of the TASC shall not reduce funding

provided to the modes for the transportation computer center, as these

services are to be acquired from other sources in fiscal year 1999.

PAYMENTS TO AIR CARRIERS

(AIRPORT AND AIRWAY TRUST FUND)

The essential air service program was originally created by the

Airline Deregulation Act of 1978 as a temporary measure to continue air

service to communities that had received federally mandated air service

prior to deregulation. The program currently provides subsidies to air

carriers serving small communities that meet certain criteria.

Subsidies, ranging from $5 to $320, currently support air service to 82

communities and serve about 700,000 passengers annually. This program

was established to provide a smooth phaseout of federal subsidies to

airlines that serve small airports.

The Federal Aviation Reauthorization Act of 1996 (Public Law 104 264)

authorized the collection of user fees for services provided by the

Federal Aviation Administration to aircraft that neither take off from,

nor land in the United States, commonly known as overflight fees.

Consistent with this legislation, this program became a mandatory

program in fiscal year 1998.

General provision.-- Over the years, Congress and the department

have worked to streamline the essential air service program and to

increase its efficiency by eliminating communities that are within an

easy drive of a major hub airport or where the costs clearly outweigh

the benefits. The bill includes a limitation (sec. 331), as requested by

the administration, that continues the existing eligibility standards

and will help preserve those efficiencies. Specifically, this limitation

continues appropriations language that limits the number of communities

that receive essential air service funding by excluding points in the 48

contiguous United States that are located fewer than seventy highway

miles from the nearest large or medium hub airport, or that require a

subsidy in excess of $200 per passenger, unless such point is more than

210 miles from the nearest large or medium airport.

MINORITY BUSINESS RESOURCE CENTER PROGRAM

Appropriation Limitation on direct loans

Appropriation, fiscal year 1998 $1,900,000 ($15,000,000)

Budget estimate, fiscal year 1999 1,900,000 (13,775,000)

Recommended in the bill 1,900,000 (13,775,000)

xlBill compared to:

Appropriation, fiscal year 1998 (-1,225,000)

Budget estimate, fiscal year 1999

The minority business resource center of the Office of Small

Disadvantaged Business Utilization provides assistance in obtaining

short-term working capital and bonding for disadvantaged, minority, and

women-owned businesses. The program enables qualified businesses to

obtain loans at prime interest rates for transportation-related

projects.

Prior to fiscal year 1993, loans under this program were funded by

the Office of Small and Disadvantaged Business Utilization without a

limitation. Reflecting the changes made by the Credit Reform Act of

1990, beginning in fiscal year 1993, a separate appropriation was

proposed in the President's budget only for the subsidy inherently

assumed in those loans and the cost to administer the loan program.

The recommendation fully funds the budget request, which provides a

limitation on direct loans of $13,775,000 and subsidy and administrative

costs totaling $1,900,000.

MINORITY BUSINESS OUTREACH

Appropriation, fiscal year 1998 $2,900,000

Budget estimate, fiscal year 1999 2,900,000

Recommended in the bill 2,900,000

xlBill compared with:

Appropriation, fiscal year 1998

Budget estimate, fiscal year 1999

This appropriation provides contractual support to assist minority

business firms, entrepreneurs, and venture groups in securing contracts

and subcontracts arising out of projects that involve Federal spending.

It also provides grants and contract assistance that serves DOT-wide

goals and not just OST purposes. The Committee has provided $2,900,000,

the same level as provided in fiscal year 1998 and included in the

budget request.

AMTRAK REFORM COUNCIL

Appropriation, fiscal year 1998 $2,450,000

Budget estimate, fiscal year 1999

Recommended in the bill 450,000

xlBill compared with:

Appropriation, fiscal year 1998 -2,000,000

Budget estimate, fiscal year 1999 +450,000

PAGE 2 105th Congress Legislation Index