The Appropriations Committee provides the Coast Guard with a detailed review of its budget proposal and the Coast Guard has typically provided the same quality of support. The Committee is confident that the Coast Guard will take the appropriate actions to maintain their high standards. BUDGET JUSTIFICATION IMPROVEMENTS The Committee also notes that the Coast Guard accounting systems (over a dozen) do not provide the kind of cost support required for a program budget, and also do not permit normal and regular review of the geographical nature of Coast Guard expenditures. The Committee understands that the Coast Guard and the Department of Transportation are attempting to remedy these deficiencies. The Committee is considering requesting the General Accounting Office to work with the Coast Guard and the Department, and to provide the Committee with an initial assessment and regular progress reports on the new systems being developed. In addition, the budget justification does not reflect funding amounts included in the base from prior years. The 1991 justification needs to be substantially improved, and the Coast Guard has committed to reviewing the Committees needs for additional information. The Committee staff will work with the Department and Coast Guard staff to improve this situation. COMMITTEE FUNDING RECOMMENDATION The Committee recommendation for Coast Guard operating expenses is $2,252,000,000, including $300,000,000 to be transferred from the Department of Defense, and including $30,000,000 from the "Boat safety" account. This is $200,000 below the budget estimate, and the same as the appropriation approved by the House. After adjusting for anticipated DOD transfers, the Committee recommendation provides an increase of $127,384,000 (or plus 6 percent) over 1989 appropriations to date. This increase will fund nonpay cost-of-living adjustments (budgeted at 3.6 percent) and pay other increase adjustments without the need for programmatic reductions or station closures justified on the basis of inadequate funding. Consequently, the Committee has included bill language concerning closures. The Committee allowance assumes that $300,000,000 shall be made available to the Coast Guard from the Department of Defense in 1990, in furtherance of the Coast Guard's national defense responsibilities, including drug interdiction. Included in the allowance are the following adjustments to the budget: Double counting of inflation adjustments made to Department of Funds expended in fiscal year 1989 for clean-up activities on the - $7,200,000 - 259,000 - 10,000,000 Follow-on for 100-foot Island Class not justified. Follow-on funding of almost $11,000,000 provided in 1989, which has been retained in the base.... The proposed vessel identification system is a newly authorized program. Allowance retains $3,500,000 to initiate activity. Committee will consider restoring $1,500,000 for development activities in 1991 SLUC freeze. Coast Guard is directed to postpone automation of Boston light until completion of lighthouse policy review and funds are budgeted. Land based aerostats will not be operational as anticipated Communication support to aerostat funding not needed, due to schedule slippage Forward base to be established at Guantanamo Bay, Cuba, is expected to slip....... -2,731,000 - 1,500,000 -4,875,000 - 100,000 -9,250,000 -350,000 -2,500,000 Subtotal, reductions.. -38,765,000 Equalization of Coast Guard pay provisions with other Department of Defense agencies and other unanticipated program cost in creases... Improved surveillance, system operation, maintenance and commu- Oversight of transportation (surveillance, enforcement, permits, et Relocation of computer center from Governors Island, NY, to Martinsburg, WV.. Coast Guard to retain staffing at Boston Light during fiscal 1990 (from within available funds), and is to conduct a review of its ownership, maintenance, staffing, and use policies regarding lighthouses, which is to include participation by maritime and lighthouse preservation groups as well as mainstream preservation groups. The Coast Guard shall task a senior officer not affiliated with any operating program to lead the study...... Subtotal, increases Total, changes +35,230,000 +400,000 +1,000,000 +1,000,000 +900,000 +35,000 +38,565,000 -200,000 It is the Committee's understanding that $15,000,000 was provided for operation of the land-based aerostats in 1989, and that, even though this amount was specifically budgeted and funds were specifically provided, the Coast Guard internally reprogrammed $4,500,000 for other purposes without notifying the Committee. The Committee intends to review this situation, and to determine if the existing reprogramming guidelines are adequate for effective congressional oversight. The Committee hopes to be able to include the current reprogramming guidelines in the conference report, to be available for future reference. The Committee also understands that the President's budget includes an allowance of $17,000,000 under functional code 920 for Coast Guard pay increases. The Committee intends to determine if these funds can be made available to the Coast Guard in 1990, thereby potentially reducing the pay need by that amount. The Committee notes that no funds were budgeted for hurricane reconnaissance aircraft and no funds are included for that purpose. DRUG INTERDICTION The Committee recommendation fully funds the administration's requested level of $567,000,000, compared to $492,000,000 provided in 1989. The Committee requests the Coast Guard to submit a report to the Committee within 90 days, analyzing the impact of the President's new drug plan (announced on September 5, 1990) on Coast Guard interdiction efforts, especially including an analysis of interdiction versus demand reduction efforts Governmentwide. ENVIRONMENTAL PROTECTION ACTIVITIES The Committee recommendation increases the budget request for environmental protection activities to $168,467,000, up from $147,000,000 in 1989. VESSEL TRAFFIC SERVICE, NEW YORK The Committee provided $5,600,000 in the fiscal year 1989 supplemental for the reestablishment of the vessel traffic system [VTS] in New York and New Jersey, which was decommissioned by the Coast Guard in 1988 to save an estimated $1,341,000. The Coast Guard will use this funding in 1990 to reestablish coverage in the upper bay, from the Verranzano Narrows to the Brooklyn Bridge, including the entrance to Kill Van Kull, the Saint George ferry terminal, and the Battery. Surveillance attention will focus on the ferry routes and the deep water anchorages. The Committee intends to consider additional funding for VTS activities in 1991 in New York and New Jersey, in the Puget Sound in Washington, in New Orleans, LA, in Alaska, and in other sensitive areas. The Coast Guard is currently conducting a nationwide review of those areas and the Committee anticipates a fiscal 1991 budget estimate for those systems. THE USCG/U.S. ARMY JOINT T-800 ENGINE PROJECT The Committee notes that the House report describes in some detail the problems associated with the current engine in the HH65 helicopter. The Committee has received a reprogramming proposal from the Secretary of Transportation, urging Committee approval of a proposal to spend $10,500,000 for a proof-of-concept test of the T-800 engine as an option for reengining the HH-65. The T800 currently appears to be a viable option. The Committee agrees that the current engine performance is unacceptable, and has reviewed and approved the reprogramming request. The Committee is convinced that the Coast Guard should, to the maximum extent feasible, purchase proven technology which is concurrently supported by Department of Defense agencies. COAST GUARD COST RECOVERY The Committee has not agreed to the House Committee proposed reduction of $5,000,000 related to the Customs forfeiture fund. However, the Committee urges the Coast Guard to be more aggressive in recovering all costs to which it is entitled. It appears reason able that Coast Guard billings and recoveries from the Customs forfeiture fund would significantly exceed the amounts reported in the House report, and the Committee directs the Coast Guard to increase its efforts for cost recovery. The Committee is prepared to assist, if required. The Committee is also aware that press reports indicate that "millions of dollars in fines levied on ships that polluted waterways with oil or entered the Nation's ports with safety violations have gone uncollected by the Coast Guard." The Committee understands that the Coast Guard has corrective actions underway and hopes that the Coast Guard is paying adequate attention to such collections. The Committee also notes that the Ocean Dumping Ban Act of 1988 provides for a payment of $15 per dry ton by dumpers of sewage sludge to the Administrator of EPA on a quarterly basis. Current law also provides that one-third of this amount is to be transferred to the Coast Guard for use in surveillance and enforcement activities with respect to the transportation and dumping of sewage sludge. However, the Coast Guard has recently indicated that the ocean dumping surveillance system is currently unfunded, at an estimated cost of $400,000 annually. The Committee has added $400,000 to the budget estimate for this activity but directs the Coast Guard to collect the appropriate transfers from EPA for this activity. The Committee directs the Coast Guard to submit a comprehensive report to the Committee on its cost-recovery efforts, and its proposal for increasing those recoveries. This report should also address its Presidential protection expenses and the current cost-recovery arrangement with other Federal agencies, as well as Coast Guard efforts to collect fees for the vessel identification system, as authorized by Public Law 100-710, and should be provided within 90 days of enactment of the bill. END-OF-YEAR BALANCES The Committee is including bill language making $25,000,000 of the "Operating expenses" appropriation account available for obligation until September 30, 1991. This should permit the Coast Guard to improve its year end management of scarce resources. JURISDICTIONAL TRANSFER/ADMINISTRATIVE PROVISION The Committee has included bill language providing for a noncontroversial jurisdictional transfer between the Coast Guard and the National Park Service for management of several parcels in Sandy Hook, NJ. Does not include $100,000,000 provided in Public Law 100-690, the Anti-Drug Abuse Act of 1988, and $50,300,000 provided by transfer from the Military Construction Appropriations Act, This appropriation provides for the major acquisition, construction, and improvement of vessels, aircraft, shore units, and aids to navigation operated and maintained by the Coast Guard. Currently, the Coast Guard has in operation approximately 250 cutters, ranging in size from 65-foot tugs to 399-foot polar icebreakers, more than 2,000 boats, and more than 175 helicopters and fixed-wing aircraft. The Coast Guard also operates approximately 600 stations, support and supply centers, communications facilities, and other shore units. The Coast Guard provides over 48,000 navigational aids-buoys, fixed aids, lighthouses, and radio navigational stations. COMMITTEE RECOMMENDATION For acquisition, construction, and improvements, the bill includes $455,200,000, which is $31,400,000 more than the House allowance, $227,100,000 less than the budget request, and $160,200,000 more than the fiscal 1989 enacted level. The allowance includes the following adjustments: Icebreaker construction not currently specifically authorized. Committee supports further development of plans and specifications, and solicitation of estimates. Committee will reconsider in future years Survey and design expenses are proposed to be continued at the 1989 level. Purchase, install, and establish contract support for maintenance and operation of an additional three SARSAT LUT's... Construction of the Nation's first cold water survival training center in Alaska...... -$243,500,000 - 1,800,000 +2,700,000 +3,600,000 Expansion of the VTS coverage in Puget Sound, WA. +4,000,000 Planning and construction of the uniform warehouse expansion at the Coast Guard Training Center, Cape May, NJ... +1,300,000 Offset, to be derived from the patrol boat underrun ($5,900,000) and the AN/APG-66 underrun ($2,500,000). -8,400,000 Provide for prototype C-130 with radar dome, with radar and ancillary equipment to be provided by the Navy +15,000,000 Vessels.-The Committee recommends an appropriation of $132,200,000 for vessel acquisition and improvement. The projected allocation of these funds is shown in the table below: |