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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

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TOTALING $23.0 MILLION IS CONSISTENT WITH THE LEVEL APPROPRIATED

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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

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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.

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FRUGAL ONE.

WE'RE NOT ASKING FOR ONE MORE DOLLAR. , .OR ONE MORE

PERSON.

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

AREAS OF MARITIME SAFETY, LAW ENFORCEMENT AND DEFENSE READINESS.

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MR. CHAIRMAN, THIS CONCLUDES MY PREPARED STATEMENT.

I'LL BE

HAPPY TO RESPOND TO ANY QUESTIONS THE COMMITTEE MAY HAVE.

DRUG INTERDICTION

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?

Admiral Gracey. The budget requests funding at the level of 38,220, sir.

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 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

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