. S. Hrg. 104-809, Pt. Senate Hearings Before the Committee on Appropriations Y 4. AP 6/2: S. HRG. 104-809/ PT.l Departnents of Labor; Heal—th and Hu. issF^pcirtments of Labor, Human ealth and Services, and Education, and Related Agencies Appropriations Fiscal Year 1997 104'* CONGRESS, SECOND SESSION PART (Pages 1-572) 1 DEPARTMENTOFEDUCATION DEPARTMENTOFHEALTHANDHUMANSERVICES ^ DEPARTMENTOFLABOR MAY ] 5 1997 NONDEPARTMENTALWITNESSES SOCIALSECURITYADMINISTRATION '^Bmmam' S. Hrg. 104-809, Pr. 1 DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1997 HEARINGS BEFOREA SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE ONE HUNDRED FOURTH CONGRESS SECOND SESSION ON H.R. 3755 AN ACT MAKING APPROPRIATIONS FOR THE DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1997, AND FOR OTHER PURPOSES Part 1 (Pages 1-572) Department of Education Department ofHealth and Human Services Department ofLabor Nondepartmental witnesses Social Security Administration Printed for the use ofthe Committee on Appropriations U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1997 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402 ISBN 0-16-054324-X COMMITTEE ONAPPROPRIATIONS MARKO. HATFIELD, Oregon,Chairman TTEHDADSTCEOVCEHNRSA,NA,laMsiksasissippi RDAONBIEERLTKC.IBNYORUDY.EW,esHtawVaiiriginia ARLENSPECTER, Pennsylvania ERNESTF. HOLLINGS,South Carolina PETEV. DOMENICI,NewMexico J. BENNETTJOHNSTON, Louisiana CHRISTOPHERS. BOND, Missouri PATRICKJ. LEAHY,Vermont SLADEGORTON, Washington DALE BUMPERS,Arkansas MITCH McCONNELL, Kentucky FRANKR. LAUTENBERG, NewJersey CONNIE MACK, Florida TOM HARKIN, Iowa CONRADBURNS,Montana BARBARAA MIKULSKI, Maryland RICHARDC. SHELBY,Alabama HARRYREID, Nevada JAMESM.JEFFORDS,Vermont J. ROBERTKERREY, Nebraska JUDDGREGG,New Hampshire HERBKOHL,Wisconsin ROBERTF. BENNETT,Utah PATTYMURRAY, Washington BENNIGHTHORSECAMPBELL,Colorado J. KeithKennedy,StaffDirector MarkVan deWater,DeputyStaffDirector JamesH. English,MinorityStaffDirector Subcommittee on Departments of Labor, Health and Human Services, and Education, and Related Agencies ARLENSPECTER, Pennsylvania,Chairman MARKO. HATFIELD,Oregon TOM HARKIN, Iowa THADCOCHRAN, Mississippi ROBERTC. BYRD,WestVirginia SCLOANDNEIEGOMRATCOKN,,FlWoarsihdiangton EDARNNIEESLTKF.IHNOOLULYIEN,GSH,awSaoiuithCarolina CHRISTOPHERS. BOND,Missouri DALEBUMPERS,Arkansas JAMESM.JEFFORDS,Vermont HARRYREID, Nevada JUDDGREGG,NewHampshire HERB KOHL,Wisconsin MajorityProfessionalStaff CraigA. HigginsandBettilouTaylor MinorityProfessionalStaff MarshaSimon AdministrativeSupport MegSnyder CONTENTS Thursday, May 9, 1996 Page DepartmentofLabor:OfficeoftheSecretary 1 Thursday, June 6, 1996 DepartmentofHealthandHumanServices:OfficeoftheSecretary 129 Nondepartmentalwitnesses 211 Tuesday, June 18, 1996 DepartmentofHealthandHumanServices:NationalInstitutesofHealth 285 Tuesday, July 16, 1996 DepartmentofEducation:SecretaryofEducation 231 Nondepartmentalwitnesses 531 SocialSecurityAdministration 565 (III) DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1997 THURSDAY, MAY 9, 1996 U.S. Senate, Subcommittee ofthe Committee onAppropriations, Washington, DC. The subcommittee met at 2:10 p.m., in room SD-138, Dirksen Senate Office Building, Hon. Arlen Specter(chairman) presiding. Present: Senators Specter, Cochran, and Harkin. DEPARTMENT OF LABOR Office ofthe Secretary statementofrobertreich,secretaryoflabor opening remarks of senatorarlen specter Senator Specter. Good afternoon, ladies and gentlemen. This afternoon, the Subcommittee on Labor, Health and Human Services, and Education is holding the second hearing on the fiscal year 1997 appropriations request. We welcome the distinguished Secretary ofLabor Robert Reich here today. I wasjust commenting with Secretary Reich that I last saw him on April 2, at a reception in the French Embassy, where he and Secretary Ron Brown were honored. And we were together at 6:45 p.m., that evening and, the next day, the tragic news was received worldwide about the accident involving Secretary Brown. And my firstthought was, where was Secretary Reich? It is nice that you were safe, and very regrettable about the manypeople who were fatalities ofthat accident. Today, Mr. Secretary, we are looking forward to hearing your testimony on the administration of the Department of Labor and its budget. In fiscal year 1996, working on a bipartisan basis, we were finally able to bring our appropriation bill to the floor. Sen- ator Harkin, the ranking member, my distinguished colleague and I, cosponsored the amendment which added funds, which threaded the needle between what the President would sign and—what the House conferees would agree to. And now we are looking Senator Harkin agrees with that. SenatorHarkin. I agree. (1) Senator Specter. Now we are looking at the fiscal year 1997 budget, totaling $10.7 billion, under your request, which is an in- crease of$1.37 billion over fiscal year 1996. There are new initia- tives, but no reductions, and that sets the stage for our consider- ation as to how we are going to make ends meet. There is a com- mitment shared on all sides that we have to have a balanced budg- et, and we are committed on this subcommittee to do itwith a scal- pel and not a meat ax. Two charts have been prepared by staffshowing the budget pro- jections of nondefense discretionary spending Governmentwide for 1996 to 2002. It also shows the projection ofthe President's budget as re-estimated by CBO. The chart reflects outlays for the year the funds are actually spent. And, as is evident, both the President's and CBO's budgets project spending to go down in the outyears, al- though the President takes a position of spending more now and saving later, while the Congress is trying to put the budget on a more evenglide path. The second chart shows the President's proposal for Department of Labor discretionary spending for 1996 through 2002, with the Department's proposed spending going up, in contrast to the other chart which shows Govemmentwide spendinggoing down. And this raises the question as to whether the Department of Labor will participate in ourefforts at spendingreductions. PREPARED STATEMENT Mr. Secretary, that is a very briefstatement, the summary ofa very long and complicated and excellent statement prepared by staff, which will be placed in the record without objection. And I turn now to my distinguished colleague, the ranking member. Sen- atorHarkin. [The statementfollows:! PreparedStatementofSenatorSpecter This afternoon, the Subcommittee on Labor, Health and Human Services and Educationhasthesecondofseveralhearingsonthefiscalyear 1997 appropriations requests. IwanttoonceagainwelcomeSecretaryReichtothesubcommittee. Mr. Secretary,youragencyis charged with a formidable task: Providingemploy- mentandtrainingassistancetohundredsofthousandsofyouthand adults,enforc- ingwage and hourand occupational safetyand health laws, and providingpension security.Overthecomingmonths,thiscommitteeandothercommitteesinCongress willbetakingacarefullookatyourrecommendations.Iamsureyouwillagreethat something as important as our Nation's workforce deserves no less than the most reasonedreview. Infiscalyear 1996, workingonabipartisanbasis,wewereabletomeetboththe objectives of deficit reduction and preserving funding for priority education and workforceprograms.Asyouknow,theamendmentIsponsoredwithSenatorHarkin restoredmorethan$2.7billiontoprogramsintheseareas,includingsummeryouth jobs,dislocatedworkerassistanceandschool-to-workprograms. TheDepartmentofLaborbudgetrequestfordiscretionaryspendingforfiscalyear 1997 totals $10.8 billion, an increase of $1.37 billion or 14.6 percent over the amountappropriated infiscalyear 1996. Therequestincludesfewnotableprogram reductionsbutdoesincludeseveralnewinitiatives. Letmesetthestageforfiscalyear 1997byreferringtothetwochartswhichare displayedhereonthepodium. PROPOSEDSPENDINGGOVERNMENTWIDE GOES DOWN—NONDEFENSE DISCRETIONARY OUTLAYS [Inbillionsofdollars] Fiscalyear Congress President 1996 271 271 1997 271 282 1998 264 284 1999 260 278 2000 256 274 2001 250 259 2002 249 252 Note: Discretionary levels for the President are the levels proposed bythe President in hisfiscal Year 1997 budgetasre-estimatedbytheCongressionalBudgetOffice. The line chart shows Congress' budget projection of non-defense discretionary spending, government-wide, from 1996 to 2002. It also shows a projection ofthe President's budget as re-estimated by CBO. The chart reflects outlays, or the year the funds are actually spent. As you can see, both the President's and Congress' budgets projectspendingtogodown intheoutyears, althoughthe Presidenttakes a spend now, save later approach while the Congress puts the budget on a more reasonedglidepath. Proposedspending 1996 Again, Ijust wantto echo what Senator Specter said. We worked very closely and were able to work with you to restore almost $1 billion in the cuts in worker protection programs and job training programs. Nearly two-tWrds of the cuts made by the House were restored in the final agreement that we reached. I appreciate the close working relationship with you, Mr. Secretary, and the people on your staff at the Department of Labor, in working with us to hammer this thing out and to stick with it so that we can restore those deep cuts. Unfortunately, however, it seems that the House and Senate Budget Committees, in what they had before them on the blue- prints is going to lead perhaps to another repeat of what we did last year. The nondefense discretionary spending levels are de- scribed as a freeze. However, it is frozen be—fore we unf—roze it. I should say that i—t is a refreeze, not a freeze a—refreeze ^because we unfroze about well, as Senator Specter said it was about $2.7 billion for education and job training. That does not include the $300 million forworker protection programs thatwe added and the $1 billionforenvironmentincluded in the final agreement. So, again, a lot ofthe things that we added, they have gone back and ignored and froze those programs at lower levels than fiscal year 1996 conference agreement. So, again, we have got our work cut out for us again in that effort, and I look forward to working with Senator Specter, Senator Cochran and others on this sub- committee to make sure that we meet the challenge that we have and that you so eloquently expressed so many times. And that is to get our work force retrained, and get them the best education, to make sure that we can compete inthe world's markets. This is really where it all comes through, right here on this sub- committee. But if the budget committee has its way, I am afraid we are going to be right back where we started, fighting the same kind offight as we fought last year. But I know that Senator Spec- ter does not agree with that kind ofapproach and I know we will be working together to make sure that we do in fact not only meet our obligations but, as I said, to make sure we have enough money in thebudget forjob trainingand workforce development. Some ofthe great things we have done is in the One-Stop Shop- ping Program; I want you to know it is working great in Iowa. I have heard a lot of good things about the One-Stop Shopping in Iowa. Senator Specter. Is the one-stop shopping where you select the Presidentthere? [Laughter.] Senator Harkin. No; that is 100 stops in Iowa to select a Presi- dent. I think somebody made one stop there, and I do not think theygottoo far. Aiiyway, we have got that. Our work force development center that we have got in Davenport has been great, as is the work start consortium. I just heard good things about all of these programs now, and we have got to make sure that we back those up and make sure thatthere programs are spread around thecountry. So, again, Ijust appreciate your leadership, Mr. Secretary. Ithas been agreatleadership,both inthe area ofmanagingand directing the Department ofLabor in a very efficient, straightforward man- ner, but also your leadership in callingthe attention ofthis Nation