REQUEST REFLECTS THE PRESIDENT'S LEGISLATIVE PROPOSAL TO FOREGO COST-OF-LIVING ADJUSTMENTS FOR 1986. RESERVE TRAINING THE RESERVE TRAINING PROGRAM, PROPOSED AT $61.5 MILLION, WILL SUPPORT THE SELECTED RESERVE AT A CONTINUING LEVEL OF 12,500 PEOPLE. THE COAST GUARD RESERVE IS A VALUABLE CONTRIBUTOR TO OUR NATIONAL SECURITY, ESPECIALLY IN THE AREAS OF STRATEGIC MOBILITY AND DEFENSE READINESS. IT IS ALSO A COST-EFFECTIVE ASSET IN SUPPORT OF PEACETIME COAST GUARD MISSIONS. RESEARCH, DEVELOPMENT, TEST & EVALUATION THE RESEARCH, DEVELOPMENT, TEST AND EVALUATION REQUEST TOTALING $23.0 MILLION IS CONSISTENT WITH THE LEVEL APPROPRIATED IN FISCAL YEAR 1985. THIS APPROPRIATION IS DIRECTED TOWARDS IMPROVING THE EXECUTION OF EXISTING MISSIONS AND PROGRAMS ALONG WITH DEVELOPING THE CAPABILITIES ANTICIPATED FOR FUTURE MISSION REQUIREMENTS. THE PROGRAM TAKES A TWO-PRONGED APPROACH: HARDWARE, SYSTEM, AND PROCEDURES DEVELOPMENT TO INCREASE THE PRODUCTIVITY AND EFFECTIVENESS OF OUR PEOPLE; AND EXPANSION OF OUR KNOWLEDGE BASE FOR TECHNICAL SUPPORT TO OUR OPERATING AND REGULATORY MISSIONS. AMONG THE THINGS WE ARE TRYING TO ACCOMPLISH WITH THE COAST GUARD R&D PROGRAM IS ENHANCE THE PRODUCTIVITY OF OUR HIGH-INVESTMENT OPERATING UNITS. SUCCESS IN PROJECTS OF THIS TYPE SHOWS UP IN LATER BUDGET YEARS AS COST AVOIDANCE. EXAMPLES OF OUR INITIATIVES IN THIS AREA INCLUDE STUDIES OF: THE MOST COST EFFECTIVE AND PRODUCTIVE MIX OF VESSEL TYPES WITH WHICH TO REPLACE OUR AGING PATROL BOAT FLEET; SENSORS FOR OUR OPERATING FACILITIES; COMMAND AND CONTROL DATA SYSTEM APPLICATIONS AND INTEGRATION; AND NEW MATERIALS AND TECHNIQUES TO HELP IMPROVE SAFETY AT SEA. BOAT SAFETY ACCOUNT THE BOATING SAFETY REQUEST IS FOR $28.6 MILLION. OF THAT TOTAL, $13.6 MILLION PROVIDES FINANCIAL ASSISTANCE TO STATES FOR THE DEVELOPMENT AND IMPLEMENTATION OF A COORDINATED NATIONAL RECREATIONAL BOATING SAFETY PROGRAM. THIS CONTINUES THE FUNDING LEVEL AT THE AMOUNT APPROPRIATED FOR FISCAL YEAR 1985. THE REMAINING $15.0 MILLION IS PROVIDED FOR USE IN THE OPERATING EXPENSES APPROPRIATION, AS NOTED EARLIER. OTHER FUNDS FOR THE POLLUTION FUND WE ARE INCLUDING $7.0 MILLION IN PERMANENT AUTHORITY, AS WE HAVE IN PREVIOUS YEARS. FOR THE OFFSHORE OIL POLLUTION COMPENSATION FUND AND THE DEEPWATER PORT LIABILITY FUND, WE ARE REQUESTING $1 MILLION FOR EACH APPROPRIATION AND A MAXIMUM OBLIGATION LIMIT IN THESE TWO FUNDS OF $60 MILLION AND $50 MILLION, RESPECTIVELY. SUMMARY THE TOTAL DOLLAR LEVEL OF THE REQUEST BEFORE YOU REPRESENTS JUST A SMALL INCREASE FROM LAST YEAR AND PERSONNEL LEVELS ARE ACTUALLY LOWER. YET, EVEN WITH THIS NO-GROWTH BUDGET, WE WILL SAIL MORE SHIPS AND FLY MORE PLANES THAN LAST YEAR. WE WILL DO IS OUR WELL-JUSTIFIED REPUTATION FOR PRODUCTIVITY, IN THE TRUEST SENSE OF THE WORD. IN KEEPING WITH THE PRESIDENT'S DETERMINATION TO CONTROL GOVERNMENT SPENDING AND REDUCE THE DEFICIT, OUR BUDGET IS A FRUGAL ONE. WE'RE NOT ASKING FOR ONE MORE DOLLAR. THAN WE NEED TO DO OUR JOB. AS YOU REVIEW OUR BUDGET REQUEST, I FEEL CONFIDENT YOU WILL FIND THAT IT PROPERLY BALANCES THE NEED TO SEEK ECONOMIES AND COST-EFFECTIVENESS WITH THE REQUIREMENTS TO MAINTAIN OUR STATUTORY RESPONSIBILITIES IN THE CERTAINLY, THOSE WERE OUR GOALS AS WE PREPARED IT. I LOOK FORWARD TO WORKING WITH THIS COMMITTEE AS WE TRY TO MEET THE FISCAL CHALLENGES FACING ALL OF US IN GOVERNMENT THIS YEAR. MR. CHAIRMAN, THIS CONCLUDES MY PREPARED STATEMENT. HAPPY TO RESPOND TO ANY QUESTIONS THE COMMITTEE MAY HAVE. DRUG INTERDICTION I'LL BE Senator ANDREWS. Our colleague, Senator D'Amato, is here, and he has another commitment and a couple of questions to ask. I will turn it over to him for a moment. Senator D'AMATO. Thank you, Mr. Chairman. First of all, Mr. Chairman, I would be remiss if I did not indicate to you how deeply appreciative all of us are of your attention to these vital areas of transportation, in particular as it relates to the Coast Guard. Mr. Chairman, the issue we focus on today concerns not only my State but everyone in this country, and that is our Nation's commitment to win the war on drugs. The budget for the Coast Guard to fight this war is not adequate, just as the budgets proposed for the Customs Service and the Drug Enforcement Administration are inadequate. To increase the Coast Guard's drug interdiction ability, I believe it is necessary to deal with five key elements in the Coast Guard's budget. They are, namely, one, the restoring of funds for the two Coast Guard cutters on the east coast, and maintain current strength in the Atlantic of 30 cutters. I do not care, Admiral, how often people say they will work smarter, better, and be more efficient, more effective. There is just so much you can do, and when you take those two cutters out of service, and decrease the number in the fleet, you are not going to be able to make that up. Second, restore the 833 Coast Guard positions nationwide that this budget would eliminate. There is something very precious called esprit de corps. If you want to wreck that esprit de corps, just take out the 833 positions, and tell those who remain to work harder and longer hours. I have seen a group of Coast Guard people who are more dedicated and more conscientious than just about any other group, and I do not want to see us jeopardize that by making these kinds of frivolous cuts that will really hurt the bone and marrow and the integrity of this great group of men and women. Three, increase by 50 percent the number of Coast Guard drug interdiction teams, TACLET's, now working so successfully aboard Navy ships. That is the kind of thing, a very prudent investment in manpower in the right areas, that will pay great dividends. Four, maintain the Coast Guard's strength at Alexandria Bay and other positions on the Great Lakes. And five, expand the use of nighttime detection systems and aerostat radar balloons for effective drug interdiction. All of this, I believe, is necessary, and we must work to achieve it. When we look at the number of nighttime detection renovations that you are making on the fleet, Admiral, I think you are doing about six a year, is that right, on your helicopters? Admiral GRACEY. There are two kinds of systems we are working on, Senator. One is our forward-looking infrared system, which will ultimately be mounted on all 96 of our new helicopters. We are starting out with a prototype buy of five. We have another system called AIREYE, which is a sensor package for our HU-25 medium range search aircraft. We have authority to buy one, and a decision must be made today or tomorrow as to whether we will go forward with a contract for the other five. Senator D'AMATO. Admiral, the problem I find with this is, this effort is totally inadequate. At the rate of five a year it will take us 20 years. That is why we have got to restore those. I think it is $6 million we are talking about. Get those moneys in there so that we can really do this job. If you have a better way to rescue people, to save lives, to do drug interdiction work, it is a modest cost. I think it has absolutely got to be the most frustrating thing for the men and women on that battle line who are trying to save lives, who are trying to make inroads against the drug operators and operations, to have us skimping in an area that we should not be skimping in. There are better areas to save money. Mr. Chairman, I am pleased that you have given me this opportunity. I wonder if I might ask one more question. Senator ANDREWS. Sure. FUNDING FOR PERSONNEL FLOOR Senator D'AMATO. In the authorization bill last year, Congress took the extraordinary step of establishing a floor of 39,150 personnel for the Coast Guard. Admiral, does the budget request ask for funding at that level? sir. Admiral GRACEY. The budget requests funding at the level of 38,220, Senator D'AMATO. I would call the chairman's attention to this. I know this is something that he knows well, and has battled continuously. This is just thumbing the nose at Congress. I know they con tinually do this, and I would hope, and I would be very supportive of any of the chairman's efforts to see to it that that floor is established. Senator ANDREWS. Thank you, Senator. Senator D'AMATO. Thank you, Mr. Chairman. AIRCRAFT SENSORS Admiral GRACEY. Mr. Chairman, may I respond to one point of Senator D'Amato's a minute ago? I think I might be able to shed a little light and make you feel a little bit better, Senator, about the question of the sensors. They are a very high priority with us, but up to now we have been in a developmental stage. That has been the problem with the FLIR, the forward-looking infrared. We have had weight problems with the aircraft. We have a design. We want to make a prototype, to make sure the whole system works. Then we will be able to launch out into the whole program. AIREYE has been another matter. We have had some problems with the antenna pods, and we found some problems with the flight test of the activegated television. Those are all resolved now and we are ready to go ahead with the buy. All the aircraft are equipped with hard points to allow us to put this system on, in any one of our medium range aircraft. We are ready to launch out in the program you want. I can assure you that you are absolutely right about how the people feel about wanting that kind of help in the field. You are right on the mark on that, Senator. Senator D'AMATO. Thank you. Thank you, Mr. Chairman. CONGRESSIONAL VERSUS OMB BUDGET REQUEST Senator ANDREWS. Thank you, Senator. Admiral, the Coast Guard's fiscal year 1986 budget is essentially a freeze in budget authority, a 2-percent reduction of military personnel, and a 4-percent civilian positions cut. In what respects is the congressional request different from the Coast Guard's request to OMB? Admiral GRACEY. Well, Senator, I can give you some summary figures that will give you the picture, and then if you want to get into specific details, I can do that. For our operating expense funds, the request you see before you is $102.5 million below our original request. AC&I is $259.7 million below our request. Reserve training is down. $4.4 million, and in the field of personnel, combined military and civilian personnel are 1,969 people below our request. Senator ANDREWS. Do you feel that the budget now before us reflects the proper balance between capital investment and operating expenses? Admiral GRACEY. Given the envelope in which we must operate, Senator, with the view of holding the line, yes, I think we have the proper balance. That isn't to say that I am happy with the levels, but we have given some thought to whether we might propose to somebody that we could |