S. 1061-Departments of Labor, HHS, and Education and Related Agencies Appropriation Bill, 1998

U.S. Senate Republican Policy Committee - Larry E. Craig, Chairman - Jade West, Staff Director

Legislative Notice #38 August 29, 1997

S. 1061- Departments of Labor, HHS, and Education
and Related Agencies Appropriation Bill, 1998

Calendar No. 125

Reported from the Appropriations Committee July 24, by a vote of 28-0; S. Rept. 105-58
Quick tabs: Labor * HHS * Education * Cost * Summary Chart (PDF format)

NOTEWORTHY

By consent, the Senate will begin action on S. 1061 on September 2, 1997 at 11:00 a.m.

For FY 1998, S. 1061 provides a total of $269.1 billion in new budget authority for the Departments of Labor, Health and Human Services, Education, and related agencies. This is $10.3 billion less than the FY 1997 level. Total discretionary spending amounts to $79.7 billion, which is $5 billion above the FY 1997 level, but $424 million below the President's request. [See attached chart.]

The Committee bill, however, exceeds the budget request in several areas, including: $13.7 billion for NIH ($615 million above the request); $2.4 billion for the CDC ($52 million above the request); nearly $5 billion for special education ($748 million above the request); and $795 million in education impact aid ($137 million above the request).

As reported, S. 1061 also provides nearly $1.1 billion for health services under the Ryan White AIDS program ($41 million above the request) and fully funds the budget request for: Head Start ($4.3 billion); School-to-Work grants ($200 million); Even Start ($108 million); and the President's literacy initiative ($260 million, contingent upon authorizing legislation and to be available beginning October 1, 1998).

Senate appropriators adopted (by voice vote) an amendment by Senator Gregg to prohibit OSHA from promulgating (for one year) a proposed or final standard on ergonomics. The House bill contains a similar prohibition.

The House bill, H.R. 2264, was approved by the House Appropriations Committee on July 25, but the bill has not yet passed the full House.

HIGHLIGHTS

National Institutes of Health (NIH): Provides $13.7 billion for the NIH, $952 million above FY 1997 and $615 million above the request. The Committee's funding reflects the Senate's unanimous approval (98-0) of a Mack amendment to the budget resolution (roll call vote No. 78) calling for a doubling of NIH funding over the next five years. Several institutes (see pages 5-6 of this Notice) received increases amounting to 7 percent or more above FY 1997 amounts.

Centers for Disease Control (CDC): Provides a total of $2.4 billion for CDC, an increase of $66 million over FY 1997 and $52 million more than the request. This includes $647 million ($30 million above FY 1997) for AIDS control and prevention.

Drug Abuse Prevention and Treatment: Provides $2.7 billion for drug prevention programs, including $556 million for safe and drug free schools and communities.

AIDS: Provides $3.3 billion for AIDS research, prevention, and services. This includes $1.1 billion for the Ryan White program ($81 million more than FY 1997) and $647 million for AIDS prevention programs within the CDC.

Violent Crime Reduction: Provides $144 million for violent crime reduction activities, more than double the FY 1997 level, including $77 million for battered women's shelters.

Child Care and Development Block Grant (CCDBG): Provides $963 million for child care services, $10 million above FY 1997. An additional $2.1 billion for low-income child care assistance is available in FY 1998 under the welfare reform legislation passed last year, providing for an overall increase of $100 million for child care in FY 1997.

Head Start: Provides $4.3 billion for Head Start, an increase of $325 million over FY 1997 and the same as the budget request.

Embryo Research and Abortion Funding Restrictions: Maintains the prohibition against utilizing funds to support research involving human embryos and the restriction against federal funding to support abortions, except in the case of life of the mother, rape or incest.

Pell Grants: Provides $6.9 billion for Pell grants, allowing for a $300 increase in the maximum loan amount from $2,700 to $3,000.

School-to-Work: Provides $400 million for school-to-work programs($27 million above FY 1997) to be divided equally between the Labor and Education Departments.

Job Corps: Provides $1.3 billion for the Jobs Corps program, an increase of $93 million over FY 1997.

Individuals with Disabilities Education Act (IDEA): Provides just under $5 billion ($922 million more than FY 1997) in special education funds including $3.9 billion in grants to states ($834 million more than FY 1997) to offset the costs of educating children with disabilities.

Older Americans: Provides a total of $3.5 billion for programs serving older Americans, an increase of $290 million over FY 1997 and $250 million above the President's request. Within this amount, $1.5 billion is for programs under the Older Americans Act, including: $453 million for the Community Service Employment of Older Americans program; $305 million for support services; and $479 million for senior nutrition programs. An additional $1.2 billion is provided for the Low Income Home Energy Assistance Program (LIHEAP)for the 1998-99 winter, with another $300 million to be held in reserve for severe weather emergencies.

Consumer Price Index (CPI): Fully funds the Administration's request for a CPI revision.

National Labor Relations Board (NLRB): Includes language that prohibits the NLRB from promulgating a final rule on single site bargaining units in union representation cases.

Ergonomics Standard: Includes language that prohibits (for one year) the Occupational Safety and Health Administration (OSHA) from promulgating a proposed or final standard on ergonomics.

Government Performance and Results Act

The GPRA was enacted to improve the management of Federal agencies by requiring an emphasis on planning and results. As the strategic plans are developed, agencies are required to consult with Congress and other stakeholders on their draft strategic plans and incorporate suggestions or concerns in the plan submitted to OMB.

"The Committee is encouraged that Federal agencies are making an effort to fulfill the requirements of the GPRA. The agencies within the jurisdiction of the Subcommittee on Labor, Health and Human Services, and Education, and Related Agencies have been in consultation with the subcommittee on their draft plans, and we encourage that process to continue."

Title I -- Department of Labor

Employment and Training: The Committee recommends $5.3 billion for Labor Department training and employment services, authorized primarily under the Job Training Partnership Act (JTPA). This is a $544 million increase over FY 1997 and $35 million below the request. Funding under JTPA includes:
- $955 million for adult training, a $60 million increase over FY 1997;
- $130 million for youth training programs, a $3 million increase;
- $871 million for summer youth employment, same as FY 1997;
- $1.4 billion for dislocated worker assistance, a $64 million increase; and
- $1.3 billion for the Jobs Corps, a $93 million increase over FY 1997.
School-to-Work: The Labor Department will receive $200 million for the school-to-work program. The Department of Education will receive an additional $200 million for the jointly administered program.

Welfare-to-Work: The committee report notes that $750 million ($3 billion over four years) in direct funding for a new "welfare-to-work" initiative will be included in the Balanced Budget Act of 1997 (H.R. 2015) conference report. The program will provide grants to state and local governments to assist long-term welfare recipients in finding jobs. It is the Committee's intention to provide the necessary funding for the program in the Senate/House conference on the Labor-HHS appropriations bill.

Community Service for Older Americans: For programs under Title V of the Older Americans Act, the Committee authorizes $453 million to provide part-time employment in community service activities for unemployed, low-income persons aged 55 and over.

State Unemployment Insurance and Services: A total of $3.5 billion is authorized for this account, providing draw-down authority of $3.3 billion from the unemployment trust fund and $173 million from the general fund of the Treasury.

Occupational Safety and Health Administration (OSHA): The Committee adopted language (i.e., Gregg amendment) prohibiting funds for OSHA to develop or promulgate a standard on ergonomics for one year.

National Labor Relations Board (NLRB): The NLRB is prohibited from promulgating a final rule on single site bargaining units in representation cases.

Title II -- Department of Health and Human Services

Health Resources and Services: The Committee recommends $3.5 billion for the Health Resources and Services Administration (HRSA). This is $183 million more than the Administration's request and $74 million less than the FY 1997 level. HRSA supports programs providing health services to medically underserved populations, including: mothers and infants, migrant farm workers, HIV-infected individuals, elderly homeless, and disadvantaged minorities. Recommended funding for HRSA programs include:

$826 million for health centers programs,$16 million more than requested and $24 million more than the FY 1997 level.
$681 million for the maternal and child health block grant, the same as requested and the same as the FY 1997 level.
$96 million for Healthy Start, the same as requested and the same as the FY 1997 level.
$1.1 billion for Ryan White AIDS programs,$41 million more than requested and $81 million more than the FY 1997 level.
$208 million for Title X, Family Planning, $5 million more than requested and $10 million more than the FY 1997 level.

Centers for Disease Control (CDC): The Committee recommends $2.3 billion for the CDC, $46 million more than requested and $56 million more than the FY 1997 level. This amount includes $446 million for childhood immunization ($18 million more than requested), $647 million for HIV/AIDS activities ($13 million more than requested), $142 million for breast and cervical cancer screening (same as the request), and $112 million for infectious diseases (same as the request). Additionally, under this item, the Committee provides $51 million from the Violent Crime Reduction Trust Fund for activities authorized by the Violence Against Women Act, namely rape prevention and education ($45 million) and domestic violence community demonstrations ($6 million).

National Institutes of Health (NIH): The Committee recommends a total of $13.7 billion in FY 1998 for the 24 Institutes, Centers, and Divisions that comprise NIH. This total is $952 million above the FY 1997 level and $615 million above the request. The Committee recommended a $41.7 million reduction in administrative expenses at NIH for FY96. Substantial increases for the Institutes include:

$177 million more for the Cancer Institute (7.4% increase)
$99 million more for the Heart, Lung, and Blood Institute (7% increase)
$68 million more for the Diabetes, Digestive, & Kidney Disease Institute (8% increase)
$55 million more for the Neurological Disorders and Stroke Institute (7.6% increase)
$103 million more for the Allergy and Infectious Diseases Institute (8% increase)
$46 million more for the Child Health and Human Development Institute (7% increase)
$35 million more for the Institute on Aging (7% increase)
$52 million more for the Institute of Mental Health (7.4% increase)

Substance Abuse and Mental Health Services Administration (SAMHSA): The Committee recommends a total of $2.1 billion for SAMHSA in FY 1998. This amount is $29 million less than the request and $5 million more than the FY 1997 level.

Medicaid: The Committee recommends $71.6 billion for grants to states for Medicaid. This amount is $3.5 billion less than FY 1997 and $72 million more than the Administration's request (reflecting proposed savings of $72 million as a result of an exemption from the payment of the vaccine excise tax for vaccines purchased with federal funds). In addition, the Committee provided $1.7 billion for HCFA program management, $55 million less than the request and $15 million less than the FY 1997 level.

Payments to Health Care Trust Funds (Medicare): The Committee recommendation includes the current-law estimate of $63.6 billion for federal payments to the Medicare trust funds. This amount is $3.5 billion more than the FY 1997 appropriation and is the same as the Administration request.

Administration for Children and Families: Total funding for the Administration for Children and Families is $15.2 billion for FY 1998, $108 million more than the budget request and $10.4 billion less than FY 1997. The large decrease in funding reflects the shift in funding for most Family Support payments to the 1996 welfare reform act. Funding for AFDC and JOBS, for example, have been replaced by the temporary assistance to needy families (TANF) block grant funded under the welfare reform bill (104-193). The Committee recommends:

$963 million for the Child Care Development Block Grant, $9 million more than the FY 1997 level and $37 million less than the request.
$2.2 billion for the Social Services Block Grant (Title XX), $255 million less than the FY 1997 level and $135 million below the budget request.
$4.3 billion for Head Start, which is $325 million more than FY 1997 and the same as the request.
$3.5 billion for foster care, which is $267 million less than FY 1997 and the same as the request.
$701 million for adoption assistance, which is $133 million more than FY 1997 and the same as the request.
$1 billion for the Low-Income Energy Assistance Program (LIHEAP), which is the same as the FY 1997 level and the request. The Committee also recommends a $1.2 billion advance appropriation for FY 1999 ($200 million more than requested) and a $300 million emergency reserve allocation for FY 1998.
$493 million for the Community Services Block Grant, which is $3 million more than the FY 1997 level and $78 million more than the request.

Title III -- Department of Education

Funding: The Committee recommends a total of $31.9 billion in FY 1998 for programs within the Department of Education. This amount is $2.9 billion more than FY 1997, and $199 million below the request.

Goals 2000: The Committee included $530 million for state and local grants authorized under Title II of the Goals 2000: Educate America Act. This is $39 million more than FY 1997 and $90 million less than the Administration requested.

School-to-Work Opportunities: The Committee provided $200 million for the Department of Education, and an additional $200 million for the Department of Labor for school-to-work programs. This portion provided under Title III is slightly more than the the FY 1997 level and the same as the Administration request.

Technology Literacy Challenge Fund: The Committee provided $425 million for this program, authorized by the Elementary and Secondary Education Act; this is $225 million more the FY 1997 level and the same as the request. An additional $116 million is recommended for technology innovative challenge grants, $49 million more than the FY 1997 level and $31 million more than the request.

Education for the Disadvantaged: The Committee recommended $7.8 billion for education for the disadvantaged. This amount is $8 million more than FY 1997 and $270 million less than the Administration request. Included in the Committee recommendation is:

$6.3 billion in Title I (formerly chapter I) grants to local educational agencies (LEAs) to assist low-income, low-achieving students. This amount is $500,000 more than FY 1997 and $82 million more than the budget request.
$1 billion for concentration grants that go to counties or local educational agencies (LEAs) in which at least 15 percent (or a minimum of 6,500 children) of the school-age population is poor. This is the same as the FY 1997 level and $23 million more than the request.
$108 million for the Even Start program to assist disadvantaged families with children under 8 years of age and adults eligible for services under the Adult Education Act. This amount is $6 million more than the FY 1997 level and the same as the request.
$305 million for the education of the children of migrant workers. This amount is the same as FY 1997 and $14 million less than requested.

Impact Aid: The Committee recommends $795 million for financial assistance to school districts whose local revenues are diminished by federal activities (e.g., neighboring military bases or Indian lands). This amount is $65 million more than FY 1997 and $137 million above the Administration request.

School Improvement Programs: The Committee recommends $1.5 billion for a variety of school improvement programs. This amount is $57 million more than FY 1997 and $183 million more than requested. Committee recommendations with respect to school improvement include:

$556 million for state grants for the safe and drug-free schools and communities programs. This amount is the same as the FY 1997 level and $64 million less than the request.
$310 million for innovative education program strategies state grants, the same as the FY 1997 level. The Administration proposed to eliminate funding for the program which awards grants to states and LEAs to use for instructional materials, teacher training, and Goals 2000 activities.
$310 million for Eisenhower teacher training state grants. This is the same amount as the FY 1997 level and $50 million less than the request.
$95 million in grants to local educational agencies to establish magnet schools as part of an approved desegregation plan. This amount is the same as the FY 1997 level and the Administration request.
$51 million for charter schools. This amount is the same as the FY 1997 level and $49 million less than the Administration request.
$40 million for school construction and repair. This is a new program authorized by Title XII of the Elementary and Secondary Education Act (ESEA).

Bilingual and Immigrant Education: The Committee recommends $354 million for bilingual and immigrant education. This amount is $92 million more than the FY 1997 level and the same as the Administration's request.

Special Education: The Committee recommends $5 billion for special education programs authorized by the Individuals with Disabilities Education Act (IDEA). This amount is $922 million more than the FY 1997 level (nearly $2 billion more than the FY96 level) and is $748 million more than the Administration's request.

Rehabilitation Services and Disability Research: The Committee recommended $2.6 billion for this mandatory program to help individuals with physical and mental disabilities obtain gainful employment. This amount is $82 million more than FY 1997 and $8 million more than the request.

Vocational and Adult Education: The Committee recommends $1.5 billion for vocational and adult education ($1.1 billion for vocational education and $355 million for adult education), which is slightly more than the FY 1997 level and $79 million less than the request.

Student Financial Aid: The Committee recommends total funding for student financial assistance of $8.6 billion. This amount is $997 million more than the FY 1997 level and $706 million less than the Administration's request. Committee recommendations with respect to student financial aid include:

$6.9 billion for Pell grants during the 1998-99 academic year. This amount is $991 million more than FY 1997 and $725 million below the Administration request. The Committee's recommendation will allow for a $300 increase in the maximum grant amount, from $2,700 to $3,000.
$158 million for the federal Perkins loan program. This amount is the same as the FY 1997 level and the budget request.
$634 million for federal supplemental educational opportunity grants (SEOG). This amount is $51 million above both the FY 1997 level and the request.

Guaranteed Student Loans: The bill includes $46.5 million for administrative expenses related to the Federal Family Education Loan (FFEL) program. This amount is the same as the FY 1997 level and $1.2 million below the request.

Higher Education: The Committee recommended $930 million for higher education. This amount is $51 million more than FY 1997 and $106 million less than the request.

Education Research, Statistics, and Improvement: The Committee recommended $362 million for education research, statistics, and improvement. This amount is $31 million more than the FY 1997 level and $63 million below the request. With respect to education improvement, the Committee recommends:

$50 million for the Fund for the Improvement of Education (FIE), which is $10 million more than both the FY 1997 level and the request. This program supports activities such as counseling and mentoring, health education, and environmental education.
$25 million for the Eisenhower Professional Development Federal Activities Program, which is $12 million more than the FY 1997 level and $5 million below the request. This program provides funds for teacher training. The Committee recommends that $16 million of the appropriated amount go to the National Board for Professional Teaching Standards, an $11 million increase over FY 1997.
$15 million is recommended for the Eisenhower regional math and science education programs. This amount is the same as both the FY 1997 level and the Administration request.

Child Literacy Initiative:The Committee recommends $260 million for a new child literacy initiative (i.e., "America Reads Challenge Program") to train 30,000 reading specialists who in turn would train 1 million volunteer reading tutors over the next five years. The Administration requested $260 million, beginning in FY 1998 to fund the effort. The Committee's recommended level of $260 million would become available in FY 1999, providing that authorizing legislation is enacted by April 1, 1998.

Title IV -- Related Agencies

Funding: The Committee recommends $26.7 billion (mostly SSI entitlement spending) for related agencies under this Title. This includes current year funding of $17.5 billion; FY 1998-99 advances of $8.8 billion; and FY 1999-2000 advances of $300 million. Committee recommendations under Title IV include:

$26 billion (mandatory spending) for Supplemental Security Income (SSI). This includes $16.2 billion in FY 1998 funds as well as an additional $8.7 billion in advance funding for first quarter FY 1998/99. An additional $9.7 billion was provided last year for first quarter FY 1997/98 payments.
$233 million for domestic volunteer service programs. This amount is $19 million more than FY 1997 and $28 million below the request.
$300 million in FY 2000 advance appropriations for the Corporation for Public Broadcasting (CPB). This amount is $50 million more than each of the FY 1998 and FY 1999 levels and $25 million less than the FY 2000 request.
$175 million in FY 1998 for the National Labor Relations Board (NLRB). This amount is the same as FY 1997 and $12 million below the request.

Title V -- General Provisions

Section 502: Limits the availability of funds appropriated in the bill to FY96, unless the bill specifies otherwise.
Section 503(b): Prohibits the use of funds to pay the salaries or expenses of lobbyists.
Section 505: Prohibits the use of funds for distributing hypodermic needles to intravenous drug abusers, unless HHS determines such a program is effective in preventing the spread of HIV.
Section 508: Prohibits the use of federal funds to pay for abortions except when necessary to save the life of the mother or when the pregnancy is the result of rape or incest.
Section 514: A new provision allowing the Social Security Administration (SSA) to collect a user fee ($5 in FY 1997 increasing to $8.50 in FY 2002) for federal administration of state supplemental SSI payments.

COST

CBO estimates that the bill would result in outlays of $188.6 billion in FY 1998; $40.5 billion in FY 1999; $10.2 billion in FY 2000; $1.2 billion in FY 2001; and $80 million in FY 2002 and future years. ** Summary Chart (PDF format)

ADMINISTRATION POSITION

As of press time, no official "Statement of Administration Policy" with respect to S. 1061, as reported, was available. However, a number of the Administration's preliminary concerns with the bill were detailed in a July 24, 1997 letter from OMB director Franklin Raines to Senator Specter.