The Fiscal Year 2001 budget request for salaries and expenses for the Chief Administrative Officer is $64,180,000. Included in this request is $33,588,000 (52%) for personnel and $30,592,000 (48%) for non-personnel. The funding requested is for direct operational costs of the CAO organization as well as other costs that are attributable to the entire House of Representatives.

The increase, in comparison to Fiscal Year 2000, is driven primarily by two cyclical responsibilities carried within the CAO budget. First, is the $2,882,000 net budget request for office equipment. This request, is a 92% increase over the Fiscal Year 2000 funding for this same account.

Second, the CAO's budget contains $1,643,000 in funds to cover estimated expenses for the Congressional transition to the 107th Congress. For example, funds are included for items such wiring, telephones, voicemail for the move coordination center, and funding for contractor costs for the movement of telephone and telephone switches, as well as other administrative support.

Simply put, these two items require funding for which there was little comparable Fiscal Year 2000 baseline expense. For point of comparison the CAO spent a total of $62,729,035 in Fiscal Year 1999. The budget presented today is a 2.3% increase over that amount.

Our Fiscal Year 2001 personnel budget request is an increase of 5.2% over the Fiscal Year 2000 personnel budget. Mr. Chairman, we have again taken a very close look at our personnel requirements and in keeping within the direction of this Subcommittee over the past few years have not requested funding for any longevity's, merits or reclassification of positions. As with previous years, this does not mean there is a moratorium on these items, simply that these will be granted from budget savings as appropriate. The requested personnel budget does include a prorated cost of living raise of 3.7%. Additionally, the CAO is requesting the same number of FTE (601) as approved by this Committee for Fiscal 2000.

The mission of the CAO organization is to provide excellent and efficient service to the U.S. House of Representatives. We are one team, proactive and professional, focused on the evolving needs and expectations of Members and the House community.

We approached the Fiscal Year 2001 budget formulation process by first developing a comprehensive five-year strategic plan for the organization based on this mission. We developed five vision elements with specific goals and objectives under each vision. Using this plan as our guide, each CAO unit created project plans under the applicable vision element with specific dollars and FTE attributed to each plan. The total of all project plans equals our Fiscal Year 2001 budget request.

I would like to briefly outline each of the five vision elements and what we plan to accomplish under each. I will also highlight the total funding and FTE requested for each vision.

Continuous Improvement of Products and Services Vision—we are requesting a total of $39,502,241 for projects within this vision, of which $16,781,429 is for non-personnel. There are 431 FTE requested in support of all the projects within this vision. This request is nearly 61.5% of all funds requested today. With continuous change in Member and staff requirements, the CAO needs to maintain an ongoing dialogue with the House community to clearly understand and anticipate their needs. The projects within this vision consist of sustaining activities, business process improvements and business process reengineering. Some of the projects included in this budget request are the following:

· Furniture Resource Center Services to the House Community-this provides for the purchase of furniture, including desks, chairs, filing cabinets, carpets and drapes. We are requesting a total of $6,977,125 of which $2,654,342 is for non-personnel. House Postal Contract-this contract was awarded once again to Pitney Bowes in May 1998 for 24 months with options of five one year renewal periods. We are requesting $3,416,214, of which $3,292,320 is for non-personnel.

Procurement Desktop Operations, Enhancements and Systems Integration—this is the CAO's electronic system for processing purchase orders. This system routes requisitions and purchase orders through a predefined approval process and posts obligations to the House's electronic accounting system (FFS). The funds requested are for the ongoing PD support such as equipment, software and maintenance, as well

as data interfaces and process integration with other House systems such as FAIMS and FFS. We are requesting a total of $1,418,107 for PD of which $1,055,389 is for non-personnel.

• New Payroll System—we are requesting funds of $2,210,000 in no-year funds for the new payroll system. To date, we have a total of $6,021,000 in no-year funds set aside for this replacement effort. Later this year, we will be selecting a system from proposals submitted and making a recommendation to House decision-makers on a final system replacement option.

• Television coverage of floor proceedings and audio/TV_coverage—In addition to televised coverage of floor proceedings, we are requesting funds to allow us to continue to provide a signal to accredited news agencies and C-Span. We are requesting a total of $1,224,950 of which $306,091 is for non-personnel.

Fluid Information Technology Vision-we are requesting $20,954,828, of which $11,581,466 is for non-personnel. There are 146 FTE requested in support of all the projects within this vision. The CAO needs to continue to improve the availability of knowledge and information through technology to the point that it is similar to the common utilities of today such as electricity, gas and water. The idea is such that you flip a switch or turn a valve and it happens. Some of the major projects under this vision are the following:

HIR evaluation programs for understanding of leading edge technology-is a critical project that provides exposure of new technologies to Members, Committees, and staff to promote opportunity to improve House activity with technology. We are requesting a total of $167,267.

Seamless information security structure- several projects focus on providing protection to Member data from unauthorized access or corruption in a way that does not interfere with normal operations. We are requesting $689,207 of which $367,542 is for non-personnel.

• Wide area networking the funding requested provides basis communication and access such as Internet, secure dial in access, network connectivity, private lines and

Frame Relay service provided to each Members Office. We are requesting a total of $2,965,633, of which $2,785,500 is for non-personnel.

Campus Network Infrastructure this provides the basic campus network connectivity between buildings and offices through a complex set of wires, fiber, hardware and software. This is the communication infrastructure that connects everyone's computers and makes possible automated scheduling, messaging and the Internet. We are requesting a total of $1,379,600, of which $1,022,550 is for nonpersonnel.

• Voice and Video Support-this provides basic voice and video communications, such as telephones, by maintaining a telephone switch with digital features such as voicemail. This system is equivalent to a phone company serving a small city and requires extensive hardware and maintenance. We are requesting a total of $3,800,749, of which $1,629,500 is for non-personnel.

• Messaging and Applications—this is for HIR to provide basic e-mail and electronic scheduling capabilities to Members and support for configuration and use of a variety of software applications. We are requesting a total of $2,580,691 of which $972,358 is for non-personnel.

Correspondence Management Systems Evaluation and Validation-this is for HIR to provides contracted support for a structured review and test process for House Correspondence Management Systems (CMS) marketed to Member offices to determine if the system meets the needs of the Members. HIR will also determines if the documentation and marketing materials for the system are accurate and provide the Members the necessary information to make an informed purchasing decision. We are requesting a total of $280,000 for this project.

Disciplined Resource Management Vision—we are requesting $3,200,576 of which $2,111,677 is for non-personnel. There are 18 FTE requested in support of the projects within this vision. The CAO must continue to attain the highest possible value for the taxpayers dollar by ensuring the best-planned and most efficient use of limited funds and available resources. We believe that we are in the process of reaching that goal through

the linking of the strategic plan with the budget for the first time. The project plans within this vision are primarily related to the formulation and execution and monitoring of the fiscal year budget for the House of Representatives and the financial systems used to perform these activities.

• Federal Financial System (FFS)-the financial system for the House was installed in June 1996 and was designed to serve as a temporary replacement for the outdated system previously used. We have begun to plan ahead for the longer-term solution. This budget request includes $3,065,720 of which $1,606,000 is for non-personnel funds for ongoing FFS support, and a Technical Analysis and Design study that will assist us in determining the long-term solution for the House's financial system. • Procurement Desktop Member Pilot-is a program to test the expansion of Procurement Desktop, the House automated procurement system, to approximately 10 Member and Committee offices. Procurement Desktop has been successfully implemented throughout the offices of the CAO and is currently being rolled out to the other House Officers. The pilot would include providing test offices with the ability to electronically requisition equipment and special-order supplies. This budget request includes $490,364 of which $391,836 is for non-personnel costs.

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Synergistic Management Vision—we are requesting $312,984 of which $8,000 is for non-personnel. There are 4 FTE requested in support of the projects within this vision. Synergistic management will ensure that we are pro-active with planning, and actively involving all CAO staff and the House community, both at the strategic and operational levels. Additionally, this vision encompasses improved internal communications that are designed to rapidly reach and be easily understood by all CAO team members through reliable and complementary mechanisms. With these and other efforts in place, we will continue to promote management and leadership which instills a team spirit so that all CAO staff pull together to enable the House to meet its wide variety of obligations.

Continuous Professional Renewal and Revitalization Vision-we are requesting $209,408 for projects under this vision, of which $109,389 is for non-personnel. There