Special Report: Senate Omnibus Appropriations Package and California Implications

The California Institute For Federal Policy Research
SPECIAL REPORT: Senate Omnibus Appropriations for FY2003 and California
Implications
[An Analysis of H.J.Res. 2 as of January 23, 2003]

To view this online: http://www.calinst.org/pubs/omn03s.htm
For printable Acrobat version: http://www.calinst.org/pubs/omn03s.pdf

CONTENTS OF THIS ISSUE:
DEPARTMENT OF EDUCATION
DEPARTMENT OF JUSTICE
DEPARTMENT OF COMMERCE
DEPARTMENT OF THE ARMY
DEPARTMENT OF THE INTERIOR
INTERIOR RELATED AGENCIES
DEPARTMENT OF ENERGY
DEPARTMENT OF TRANSPORTATION
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
NATIONAL SCIENCE FOUNDATION
DEPARTMENT OF AGRICULTURE
DEPARTMENT OF LABOR
DEPARTMENT OF HEALTH AND HUMAN SERVICES
OTHER PROVISIONS

On January 8, 2003, the House passed by voice vote House Joint
Resolution 2, providing continuing appropriations for Fiscal Year
2003 through January 31, 2003. On January 15, the Senate began
consideration of the resolution and attached Senate Amendment 1
in the nature of a substitute. The Senate amendment contains $390
billion to fund the FY03 appropriations for the eleven
appropriations bills that were unfinished at the end of the 107th
Congress. As of January 23, the Senate continued to consider the
Omnibus Appropriations package, and the House is expected to take
it up the following week.
The following represents a quick analysis of the Senate’s
Omnibus bill from a California perspective as prepared by the
California Institute. Our analysis is based on the legislative
language in the Senate Amendment. Further details on specific
funding implications for California may become available once the
House and Senate have conferenced on the bill and issued a
report. We apologize for any errors or omissions in our
discussion of these documents, and would appreciate any
input/feedback on how to make improving corrections. The ordering
of items generally reflects their presence in the bill and does
not mean to imply any relative importance.
This appropriations analysis is available on the California
Institute web site at http://www.calinst.org/pubs/omn03s.htm and
a printable version in Adobe Acrobat (“pdf”) format is available
at http://www.calinst.org/pubs/omn03s.pdf .

DEPARTMENT OF EDUCATION

Education for the Disadvantaged (Title I)
In total funding for the Education for the Disadvantaged
accounts, the bill provides a total of $13.178 billion for FY
2003, which is $831 million more than the $12.347 billion
appropriated for 2002. (Last year’s level had constituted a $2.3
billion increase above the $10 billion provided in FY 2001.)
However, the Senate proposes no increase in the traditional
components of Title I, focusing 100 percent of the increase on
two relative newcomers to the Title I formula funding mix:
targeted grants and EFIG.
The Senate bill provides $7.173 billion – the same funding
level as in FY 2002 – for Title I basic grants. (That level had
represented a decrease of $226 million from the FY 2001 level.)
Likewise, the Senate bill retains the FY 2002 level for Title I
concentration grants, providing $1.365 billion.
For the two Title I formula elements that have only recently
received funding, the Senate bill proposes large increases. The
bill proposes $1.4 billion for targeted grants and $1.4 billion
for education finance incentive grants (EFIG). The two programs
were funded for the first time in FY 2002 pursuant to a
conference amendment by Sens. Mary Landrieu (LA) and Thad Cochran
(MS) in 2002. Congress provided $1.018 billion for newly-funded
targeted grants, and $793 million in first-time funding for EFIG.
During reauthorization of the Elementary and Secondary
Education Act in December 2001, Congress made formula changes for
targeted grants and EFIG, which are likely, in the aggregate, to
increase California’s share of those grants. A past analysis of
the four primary grant components of Title I (basic,
concentration, targeted, and EFIG) showed that California
generally would receive the highest portion of funds from
targeted grants, and the lowest from EFIG.
However, in 2001, Congress changed a key formula factor for
EFIG funding by counting only children in poverty, as opposed to
all children — a shift which will improve California’s share of
the program. (California houses a higher percentage of poor
children than of children overall. While California was home to
12.5% of the nation’s school-age children in 1999, the state
housed 15.6% of the nation’s poor children.) Nevertheless, EFIG
grant funding is still calculated partially based on state
average per-pupil expenditure and tax effort for education, both
of which cut California’s share, and state per capita income is
also a factor in the grant formula, which serves to reduce the
state’s share.
In the short run, California probably would receive more
money from increased funding for basic grants as opposed to
targeted grants. California and other growing states have been
hampered for years by a Senate-imposed “100% hold harmless,”
which guaranteed states their prior year’s funding level and thus
artificially propped up funding in states with less acute needs
than those, like California, with very rapid child poverty
growth. Only once there was new money above the prior year’s
levels would the new funds go to alleviate growth states’ needs,
and those first new dollars would go exclusively to the growth
states (with more than 20% to California). Since there are no new
basic or concentration grant funds in the conference report, that
extra boost to California will not occur. Nevertheless,
California’s share of funds from the newly-funded EFIG and
targeted grants is likely to be substantial.
It is encouraging that the FY 2003 bill appears to be free
of the 100% special hold harmless language that has plagued past
years’ bills, but the statutory hold harmless provisions (at 85%
to 95% of the prior year’s level) will still reduce some of the
shift of funds to California and other growth states. In
addition, without growth in the basic or concentration grant
funding, the past imposition of 100% hold harmlesses will
continue to be felt into the future.
As had been the case in the FY 2002 bill, the Title I
section of the conference report also includes $3.5 million for
the Census Bureau to conduct poverty data updates, which helps
California by rendering current what would otherwise be very
out-of-date poor child counts.

Impact Aid
For the Impact Aid programs, which support schools in areas
where the local tax base is reduced by significant federal
properties such as military bases, the bill provides $1.17
billion, a $30 million increase above the $1.14 billion level in
FY 2002. Because of its dwindling bases presence, California’s
typical share of Impact Aid funds has declined from about 10% to
about 7% over the past few years. Of the total funding, the
Senate bill provides that $1.012 billion is to be for basic
support payments, $52 million for payments for children with
disabilities, $47 million for construction, and $57 million for
federal property payments

School Improvement Programs
The Senate bill provides level funding of $7.78 billion for
school improvement programs. No funds are provided for emergency
school renovation and repair.

English Language Acquisition (formerly Bilingual and Immigrant
Education)
The Senate bill provides $690 million for the English
Language Acquisition program, formerly known as Bilingual and
Immigrant Education. Because the funding level remains above a
pre-determined threshold, the program will continue use of a new
formula for distributing the funds, which is likely to benefit
California. Allocations for the renamed English Language
Acquisition and Language Enhancement grants are now based 80% on
states’ relative share of children considered limited English
proficient (LEP) and 20% based on states’ share of immigrant
children, and California’s share of both factors is high. The
small-state minimum for the program is small ($500,000), and 7.5%
of the total funds are for national activities and grants to
Indian tribes. Some funds are also reserved to continue existing
grants for a few years. States must pass 95% of the funds they
receive to eligible school districts and other eligible entities.
The $690 million level is above the $665 million level in the FY
2002 Labor-HHS-Education funding conference report, and is well
above the FY 2001 appropriation of $460 million.

Special Education
The Senate bill provides $9.69 billion for Special
Education, a $1 billion increase above the FY 2002 level of $8.67
billion, which itself had been more than $1.2 billion higher than
the FY 2001 level of $7.44 billion. For IDEA Part B grants to
states, which account for about three-fourths of special
education spending, California typically receives roughly 10%.

Rehabilitation Services and Disability Research
The Senate omnibus bill provides $2.96 billion for
rehabilitation services and disability research, an increase
above the $2.946 billion total in FY 2002, which itself had been
higher than the $2.8 billion level provided the prior year.
California typically receives roughly 10% of funds for vocational
rehabilitation state grants, which constitutes the bulk of these
funds. The Senate bill, however, inserts a hold harmless
provision, stating that “no State or outlying area awarded funds
under section 101 shall receive less than the amount received in
fiscal year 2002,” and also providing that “each State shall be
provided $100,000 and each outlying area $30,000 for activities
under section 102”.

Vocational and Adult Education
While the exact figure is unclear due to forward funding
usage, the Senate bill provides $1.94 billion for Vocational and
Adult Education, with another $791 million in reserved forward
funding for the same. The bill’s total does not break out
divisions within the category, but in 2002 Congress appropriated
$1.18 billion for Vocational Education basic state grants
(California’s share of voc ed basic grants is typically about
11%) and $575 million for Adult Education (of which California
receives about 10.8%).
The bill further specifies that, of the amount for adult
education, $70 million is to be used for “integrated English
literacy and civics education services to immigrants and other
limited English proficient populations.” In addition, of that $70
million, “65 percent shall be allocated to States based on a
State’s absolute need as determined by calculating each State’s
share of a 10-year average of the Immigration and Naturalization
Service data for immigrants admitted for legal permanent
residence for the 10 most recent years, and 35 percent allocated
to States that experienced growth as measured by the average of
the 3 most recent years for which Immigration and Naturalization
Service data for immigrants admitted for legal permanent
residence are available, except that no State shall be allocated
an amount less than $60,000.”
California is typically the destination of more than 25
percent of new immigrants, so the provision would surely increase
California’s share of adult education funds. The state would
likely receive $12 to $15 million from the first 65 percent
formula component (as opposed to the $4.9 million under the
traditional adult education formula). The function of the second
formula component is less clear.

Student Financial Assistance
For overall financial aid in FY 2003, the Senate bill
provides $13.152 million, an $867 million increase above the
$12.285 billion for 2002, which itself had been far above the FY
2001 appropriation of $10.674 billion. The bill moves the maximum
Pell Grant level from $4,000 to $4,100.

Higher Education
The bill approximately level funds overall higher education
programs at $2.048 billion. No further detail is given within the
programs.

Other Provisions
The Senate bill also prohibits funds from being used to
transport students or teachers to overcome racial imbalance, or
to transport students to schools other than that nearest their
home (except for special education situations or magnet schools).
Funds are also prohibited for usage to prevent the implementation
of programs of voluntary prayer and meditation in the public
schools.

DEPARTMENT OF JUSTICE

Immigration and Naturalization Service – For Salaries and
Expenses, $3,076,509,000; and for Construction, $267,138,000.
FY02 funding for Salaries and Expenses was $3.371 billion.
During Senate floor consideration, an amendment was adopted
to provide an additional $165 million to the INS for its computer
system.

Office of Justice Assistance – For grants, contracts,
cooperative agreements, and other assistance under the 1968 Crime
Act and the Missing Children’s Assistance Act, $194,057,000.
In addition, for grants, cooperative agreements, and other
assistance authorized by the Antiterrorism and Effective Death
Penalty Act of 1996 and for other counterterrorism programs,
$2,038,000,000.

State and Local Law Enforcement Assistance – $1,368,415,000
is appropriated, which includes the following funding:
– $400,000,000 is for Local Law Enforcement Block Grants,
the same amount as FY02;
– $90,000,000 is for Boys and Girls Clubs in public housing
facilities and other areas in cooperation with State and local
law enforcement; and
– $134,700,000 is for discretionary grants under the Edward
Byrne Memorial State and Local Law Enforcement Assistance
Programs.
FY02 funding for all State and Local Law Enforcement
Assistance Programs was $2,403,354,000.

State Criminal Alien Assistance Program (SCAAP) – No funding
is provided for FY03. The FY02 Appropriations amount was $565
million.

Community Oriented Policing Services – $1,120,228,000 is
appropriated. The bill also states that prior year balances
available in the program must be used for the direct hiring of
law enforcement officers through the Universal Hiring Program.
Included in the fund are the following:
– for Public Safety and Community Policing Grants,
$492,000,000;
– for crime technology, $426,215,000;
– for prosecution assistance, $100,000,000, of which
$50,000,000 is for the Southwest Border Prosecutor Initiative to
reimburse State, county, parish, tribal, or municipal governments
only for Federal costs associated with the prosecution of
criminal cases declined by local U.S. Attorneys offices.
– for grants, training, technical assistance, and other
expenses to support community crime prevention efforts,
$67,013,000;

Juvenile Justice Programs – $315,425,000 is appropriated.

Weed and Seed Program – $58,925,000 is appropriated for
intergovernmental agreements, including grants, cooperative
agreements, and contracts, with State and local law enforcement
agencies, non-profit organizations, and agencies of local
government engaged in the investigation and prosecution of
violent crimes and drug offenses in “Weed and Seed” designated
communities.
Anti-Terrorism Funding – Within accounts funding U.S.
Attorneys Office, bill language specifies that $20 million be for
the Anti-terrorism Task Forces to coordinate Port Security pilot
projects in Norfolk (VA), Charleston (SC), New Orleans (LA), and
Long Beach (CA).

DEPARTMENT OF COMMERCE

International Trade Administration – $68,083,000 is
appropriated for Trade Development; $28,197,000 for Market Access
and Compliance; and $44,006,000 for Import Administration.

Economic Development Assistance Programs – For grants for
economic development assistance and for trade adjustment
assistance, $257,886,000 is appropriated.

Pacific Coastal Salmon Recovery – For the restoration of
Pacific salmon populations and the implementation of the 1999
Pacific Salmon Treaty Agreement between the United States and
Canada, $78,650,000 is appropriated, to remain available until
September 30, 2004. In addition, for implementation of the 1999
Pacific Salmon Treaty Agreement, $20,000,000 is appropriated, of
which $10,000,000 is to be deposited in the Northern Boundary and
Transboundary Rivers Restoration and Enhancement Fund, and
$10,000,000 is to be deposited in the Southern Boundary
Restoration and Enhancement Fund.

ENERGY AND WATER DEVELOPMENT APPROPRIATIONS

DEPARTMENT OF THE ARMY
Corps of Engineers
The project for flood control for the American and
Sacramento Rivers, California is modified to authorize the Corps
of Engineers to construct the project at a total cost of
$205,000,000, with an estimated Federal share of $153,840,000 and
an estimated non-Federal share of $51,160,000.

The project for flood control for Terminus Dam, Kaweah
River, California, is modified to authorize the Corps of
Engineers to construct the project at a total cost of
$50,000,000, with an estimated Federal share of $28,600,000 and
an estimated non-Federal share of $21,400,000.

DEPARTMENT OF THE INTERIOR

Bureau of Reclamation
Central Valley Project Restoration Fund – For the Central
Valley Project Improvement Act, $48,904,000, to be derived from
such sums as may be collected in the Central Valley Project
Restoration Fund, Provided, That the Bureau of Reclamation is
directed to assess and collect the full amount of the additional
mitigation and restoration payments authorized by section 3407(d)
of Public Law 102-575.

California Bay-Delta Restoration – No new funding is
appropriated.

General Provisions – The bill states that none of the funds
appropriated may be used to determine the final point of
discharge for the interceptor drain for the San Luis Unit until
development by the Secretary of the Interior and the State of
California of a plan, “which shall conform to the water quality
standards of the State of California as approved by the
Administrator of the Environmental Protection Agency, to minimize
any detrimental effect of the San Luis drainage waters. “
The bill also states that the costs of the Kesterson
Reservoir Cleanup Program and the costs of the San Joaquin Valley
Drainage Program must be classified by the Secretary of the
Interior as “reimbursable or nonreimbursable and collected until
fully repaid pursuant to the ‘Cleanup Program–Alternative
Repayment Plan’ and the ‘SJVDP Alternative Repayment Plan’
described in the report entitled ‘Repayment Report, Kesterson
Reservoir Cleanup Program and San Joaquin Valley Drainage
Program, February 1995’, prepared by the Department of the
Interior, Bureau of Reclamation. Any future obligations of funds
by the United States relating to, or providing for, drainage
service or drainage studies for the San Luis Unit shall be fully
reimbursable by San Luis Unit beneficiaries of such service or
studies pursuant to Federal reclamation law.”
Bill language specifies that “Funds appropriated to the
Forest Service shall be available, as determined by the
Secretary, for payments to Del Norte County, California, pursuant
to sections 13(e) and 14 of the Smith River National Recreation
Area Act”.

Bureau of Land Management – $816,062,000 is appropriated for FY03.

Wildland Fire Management – $654,254,000 is appropriated.

Payment in Lieu of Taxes – $210,000,000, of which not to
exceed $400,000 shall be available for administrative expenses
Oregon and California Grant Lands – $105,633,000 is
appropriated, provided that 25 percent of the aggregate of all
receipts during the current fiscal year from the revested Oregon
and California Railroad grant lands is made a charge against the
Oregon and California land-grant fund and must be transferred to
the General Fund in the Treasury.

United States Fish and Wildlife Service
Resource Management – $902,697,000 is appropriated, of which
not less than $2,000,000 shall be provided to local governments
in southern California for planning associated with the Natural
Communities Conservation Planning (NCCP) program and shall remain
available until expended.

Interior Department General Provisions
Section 107 of the Interior Department appropriations
provides that “No funds provided in this title may be expended by
the Department of the Interior for the conduct of offshore
preleasing, leasing and related activities placed under
restriction in the President’s moratorium statement of June 12,
1998, in the areas of northern, central, and southern California;
the North Atlantic; Washington and Oregon; and the eastern Gulf
of Mexico south of 26 degrees north latitude and east of 86
degrees west longitude.”

Section 118 states that “Notwithstanding other provisions of
law, the National Park Service may authorize, through cooperative
agreement, the Golden Gate National Parks Association to provide
fee-based education, interpretive and visitor service functions
within the Crissy Field and Fort Point areas of the Presidio.”

Section 126 of the bill states that “None of the funds made
available in this Act or any other Act providing appropriations
for the Department of the Interior may be expended or obligated
to issue a Record of Decision or take any action to issue a
right-of-way grant for a pipeline or associated facilities
related to the Cadiz groundwater storage and dry-year supply
program.”

Section 310 provides that “the Secretaries of Agriculture
and the Interior are authorized to limit competition for
watershed restoration project contracts as part of the ‘Jobs in
the Woods’ Program established in Region 10 of the Forest Service
to individuals and entities in historically timber-dependent
areas in the States of Washington, Oregon, northern California,
Idaho, Montana, and Alaska that have been affected by reduced
timber harvesting on Federal lands. The Secretaries shall
consider the benefits to the local economy in evaluating bids and
designing procurements which create economic opportunities for
local contractors.”

Presidio Trust Fund – $21,327,000 is appropriated to the
Presidio Trust for necessary expenses.

INTERIOR RELATED AGENCIES

Department of Agriculture Wildland Fire Management –
$1,349,291,000 is appropriated for forest fire presuppression
activities on National Forest System lands, for emergency fire
suppression on or adjacent to such lands or other lands under
fire protection agreement, hazardous fuel reduction on or
adjacent to such lands, and for emergency rehabilitation of
burned-over National Forest System lands and water.

Acquisition of Lands for National Forests Special Acts –
$1,069,000 is provided, to be derived from forest receipts, for
land acquisition in national forests, including the Angeles, San
Bernardino, Sequoia, and Cleveland National Forests in
California.

DEPARTMENT OF ENERGY

Elk Hills School Lands Fund – For fulfilling installment
payments under the Settlement Agreement entered into by the
United States and the State of California, $36,000,000 is
appropriated to become available on October 1, 2003, for payment
to the State of California for the State Teachers’ Retirement
Fund from the Elk Hills School Lands Fund.

DOE Science Activities – For the DOE Office of Science,
which funds a number of programs important to California, the
Senate bill would provide a small increase, to $3.329 billion for
FY 2003 from the $3.233 billion level of FY 2002. The Office of
Science houses the Magnetic Fusion program, from which California
receives a very large share, as well as the High Energy Physics,
Basic Energy Sciences, Advanced, Scientific Computing Research,
and Biological and Environmental Research programs.

DOE Defense Activities – For the activities of the National
Nuclear Security Administration, with authority over the nation’s
nuclear weapons operations, the bill provides a total of $6.1
billion. Eligible fund uses include the purchase, construction
and acquisition of plant and capital equipment and other
incidental expenses necessary for atomic energy defense weapons
activities. In addition, $1.1 billion is included for nuclear
nonproliferation activities.

The bill provides $1.1 billion for Defense Facilities
Closure Projects, as well as $5.4 billion for atomic energy
defense environmental restoration and waste management
activities.

DEPARTMENT OF TRANSPORTATION

On July 25, 2002, the Senate Appropriations Committee passed
the Transportation Appropriations for Fiscal Year 2003, S.2808.
Much of what of what was included in the Committee Report S.Rept.
107-224 is obsolete due to the introduction of the Senate Omnibus
bill, H.J. Res 2, a legislative effort to combine all unfinished
domestic spending bills into one measure for passage.

Transportation Security Administration (TSA)
This new agency was created in the aftermath of September
11, 2001 upon the enactment of the Aviation and Transportation
Security Act in November of 2001. The TSA is designed to improve
security for all transport systems across the U.S. including
aviation, railways, highways, pipelines and waterways. The FY2003
Senate Omnibus bill appropriates $5,346,000,000, $396 million
more than the 2002 Senate Appropriations bill provided for the
TSA. $55 million of the funds are set aside for new explosive
detection technology installations at airports.

Federal Aviation Administration (FAA)
The Omnibus bill provides $7,047,203,000, for FAA operations
activities. The 2002 Senate Transportation appropriations bill
appropriated $13,586,225,000 for the Federal Aviation
Administration.

US Coast Guard
Omnibus language provides $4,318,456,000, for Coast Guard
operations of which $340,000,000 will be available for defense-
related activities and $752 million for necessary expenses of
acquisition, construction, renovation, and improvement of aids to
navigation, shore facilities, vessels, aircraft and related
equipment. The total is $1.753 billion below the Senate
Appropriations Committee levels for 2003 Coast Guard activities.

Federal Highway Administration
Federal-Aid Highways
The Omnibus bill includes language consistent with Senate
Appropriations Committee levels limiting fiscal year 2002
Federal-aid highways obligations to $31,800,000,000, $896 million
over the previous year’s allocation and $8,595,213,000 over the
President’s budget request based on the estimated FY 2003
distribution of obligation authority through the Revenue Aligned
Budget Authority (RABA) funding formula mechanism.

Bridge Replacement and Rehabilitation Discretionary Program
No Omnibus language is included.
Of the funds provided for the bridge discretionary program
in the Senate Appropriations Committee report, the Golden Gate
Bridge Seismic Retrofit program would receive $6,000,000.

High priority projects
No Omnibus language included.
The surface transportation law, TEA-21, specifies 1,850 high
priority projects for funding. Funding for these projects totals
$9,359,850,000 over the 6 year period.

National corridor planning and border infrastructure programs
No Omnibus language included.
The Senate Appropriations Committee bill included the
following national corridor and border infrastructure funding
directives:
– Alameda Corridor East Construction Project – $1,000,000
– New Route 905 Otay Mesa to I-5/I-85m – $5,000,000
– Colfax Narrows Project- $1,000,000

Ferry boats and ferry terminal facilities –
No Omnibus language included.
TEA-21 reauthorized funding for the construction of ferry
boats and ferry terminal facilities. Funds provided for the ferry
boats and ferry terminal facilities program under the 2002 Senate
Appropriations Committee recommendation would have funded several
projects including:
-San Francisco Bay Area Water Transit Authority Ferry Project- $2,500,000
– Vallejo Baylink Ferry, Terminal and Facilities – $1,500,000

Transportation and community and system preservation pilot
program
No Omnibus Language included.
This program provides grants to States and local governments
for planning, developing, and implementing strategies to
integrate transportation and community and system preservation
plans and projects. The 2002 Senate Appropriations bill made
fiscal year 2003 funds available for the following activities:
– Orange County Congestion Program – $1,000,000
– Virginia Corridor Greenway Pilot Project, Modesto- $500,000

Specified Intelligent Transportation Systems deployment projects
The following projects contribute to the integration and
interoperability for Intelligent Transportation Systems in
metropolitan and rural areas and promote deployment of the
commercial vehicle intelligent transportation system
infrastructure. The Omnibus bill provides funding for California
deployment activities as follows:
– Sacramento Area Council of Governments, ITS $1,000,000
– Sierra Madre Intermodal Trans. Center, Los Angeles $2,500,000
The following ITS items included in last year’s Senate Appropriations
bill are excluded from current Omnibus language:
– Willowbrook Avenue Rail Safety Program, Compton $2,000,000
– Chinatown Intermodal Trans. Center, Los Angeles $2,500,000

Federal Railroad Administration
Omnibus language provides $118 million for FRA’s safety and
operations expenses. $29,325,000 is provided for railroad
research and development programs.

Next Generation High-Speed Rail
Under this section, the Omnibus provides $30 million for
Next Generation High Speed Rail Projects, however unlike the 2002
Senate Appropriations bill $2,000,000 is not specified in Omnibus
language for California high-speed rail expenditures.
2002 Senate Appropriations Report language specified
$200,000 under this section to be spent on Las Vegas, Nevada-
Los Angeles, California highspeed rail capacity and ridership
analysis also excluded from the Omnibus. So too are Magnetic
Levitation transportation funding provisions benefitting the
following California-specific committee allocations:
– Nevada-California: Environmental impact studies, design and
engineering- $2,000,000
– Southern California Maglev environmental study and planning-
$1,000,000

National Railroad Passenger Corporation (AMTRAK)
For several years Amtrak has teetered on the verge of
bankruptcy from its increasing debt burden. The Supplemental
Appropriations Act of FY2002 included supplemental funds
amounting to $105,000,000 to keep Amtrak routes running through
September 2002.
The Omnibus bill sets an appropriation of $826,476,000 for
FY2003 national passenger rail system operations; $373,524
million below the total specified in 2002 Senate Appropriations
language. The Amtrak Board of Directors requested at least
$1,200,000,000 for Amtrak to remain operational in FY2003 .

Federal Transit Administration

Formula Program
Omnibus language provides $607,200,000 for Capital
Investment Grants.

Bus and Bus Facilities
The Omnibus bill retains 2002 Senate Appropriations levels
providing $652,200,000 for the replacement, rehabilitation, and
purchase of buses and related equipment and for the construction
of bus-related facilities although it lists no specific project
allocations. 2002 earmarks established by the Senate
Appropriations Committee for California bus and bus facilities
funding were distributed as follows:
– AC Transit Buses and Bus Facilities $1,000,000
– East Palo Alto Buses $400,000
– Fresno Buses $600,000
– Gardena Municipal Bus Lines $350,000
– Santa Clara Valley Transportation Authority Buses $2,000,000
– Livermore Valley Center Project $300,000
– Los Angeles MTA Buses and Bus Facility $5,000,000
– Los Angeles to Pasadena Construction Authority
Intermodal Centers $3,000,000
– Modesto Bus Maintenance Facility $500,000
– Monterey-Salinas Transit (MST) Bus and Bus facilities
$500,000
– Municipal Transit Operators Coalition, Long Beach $1,750,000
– Palo Alto Bus Facility $400,000
– Sacramento Regional Transit District Bus Facilities $1,250,000
– San Francisco Municipal bus and bus facilities $5,000,000
– Santa Barbara, Bus and Bus Facilities $750,000
– Sierra Madre Villa CNG Fueling Station $200,000

Fixed Guideway Modernization
The Omnibus remains consistent with the 2002 Senate
Appropriations recommendation of $1,214,400,000 for the
modernization of existing rail transit systems. Under TEA21 all
of the funds are distributed by formula. California would receive
$139,151,6518 for these projects in FY2003.

Transit New Starts
The Omnibus bill provides $1,214,400,000, together with
$25,000,000 transferred from the Job Access and Reverse Commute
Grants Program account for new fixed-guideway modernization
projects or New Starts, $100 million less than 2002 Senate
Appropriations’ level for New Starts ($1,314,400,000). These
funds are available for major investment studies, preliminary
engineering, right-of-way acquisition, project management,
oversight, and construction for new systems and extensions.
The Omnibus bill lists the following California earmarks:
– Altamont Commuter Express San Jose to Stockton $1,000,000
– San Francisco, SFO BART extension project $100,000,000
– Los Angeles, North Hollywood Extension $40,490,000
– Oceanside-Escondido Light Rail Project $12,200,000
– San Diego Mission Valley East Line Project $65,000,000
Total $218,690,000

In contrast, the 2002 Senate Appropriations report listing
California’s New Starts earmarks for FY 2003 read as follows:
– Altamont Commuter Express San Jose to Stockton $2,000,000
– San Diego, Mission Valley East Line project $65,000,000
– Los Angeles, East Side MTA $10,000,000
– San Francisco, SFO BART extension project $100,000,000
– Los Angeles, North Hollywood extension project $40,000,000
– Oceanside-Escondido Light Rail Project $20,000,000
Total $237,000,000

Job Access and Reverse Commute Grants
This program is meant to help welfare reform efforts succeed
by providing enhanced transportation services for low-income
individuals, including former welfare recipients, traveling to
jobs or training centers. It supplies competitive grants to
qualifying metropolitan planning organizations, local
governmental authorities, agencies, and nonprofit organizations.
The Senate Appropriations bill passed in 2002 recommended
the following allocations of job access and reverse commute grant
program funds:

– CalWORKS Recipient Job Center $750,000
– Los Angeles County, UTRANS $1,000,000
– Low Income LIFT Program, SF MTC $2,000,000
– Rideshare Program-MTA $750,000
– Santa Clara Valley, Guaranteed Ride Home Program $350,000

General Provisions
Sec. 329. The Omnibus bill includes a provision modifying
transportation law to define the Alameda Corridor East and
Southwest Passage, California a high priority corridor.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Public Housing: Housing Certificate Fund
For the public housing account’s Housing Certificate Fund,
which funds Section 8 renewals and tenant protections, the bill
provides $16.9 billion, an increase of $0.3 billion from the FY02
level of $15.6 billion.

Public Housing: Public Housing Capital Fund Program
The bill provides $2,683,400,000 for the Public Housing
Capital Fund Program to carry out capital and management
activities for public housing agencies.

Public Housing: Public Housing Operating Fund
The bill appropriates $3.5 billion for the Public Housing
Operating Fund, in particular for payments to public housing
agencies for the operation and management of public housing.

Community Planning & Development: Revitalization of Severely
Distressed Public Housing (Hope IV)
The bill provides $574 million for Revitalization of
Severely Distressed Public Housing (Hope IV), which funds grants
to public housing agencies for demolition, site revitalization,
replacement housing, and tenant-based assistance grants.

Block Grants: Native American Housing Block Grants
For the Native American Housing Block Grants, the bill
appropriates $648,570,000. The total includes $2.2 million in
funding for the National American Indian Housing Council in
support of the implementation of NAHASDA, and $5 million to
support the inspection of Indian housing units, contract
expertise, training, and technical assistance in the training,
oversight, and management of Indian housing and tenant-based
assistance. The total also provides for the transfer of $600,000
to the Working Capital Fund for development of and modifications
to information technology systems which serve programs or
activities under “Public and Indian housing”.

Indian Housing Loan Guarantee Fund Program Account
The bill provides $5 million in funding for the Indian
Housing Loan Guarantee Fund Program Account.
Community Planning and Development: Housing Opportunities for
Persons with AIDS
The bill appropriates $292 million for Housing Opportunities
for Persons with AIDS (HOPWA), an increase of $14,568,000 from
the FY02 appropriation of $277,432,000.

Rural Housing and Economic Development
For the Office of Rural Housing and Economic Development in
the Department of Housing and Urban Development the bill
appropriates $25 million.
Empowerment Zones/Enterprise Communities
The FY 2003 omnibus bill appropriates $30 million for grants
in connection with a second round of empowerment zones and
enterprise communities, which constitutes $15,000,000 less than
the amount appropriated in the FY02 conference report.

Community Development Fund
The bill provides $5 billion for economic and community
development activities, which is equivalent to the FY02 funding
level. The total includes $4,580,200,000 to fund the community
development block grant program under title I of the Housing and
Community Development Act of 1974.
The total appropriation includes $72.5 million in funding
for grants to Indian tribes and 7.5 million for Hispanic serving
institutions. The bill includes $45.5 million in funds for
section 107 grants, an increase of $3 million from $42.5 million
in funding provided for section 107 grants in FY 2002. The bill
designates at least $3.4 million of the total to be transferred
to the Working Capital Fund for the development of and
modification to information technology systems which serve
programs or activities under “Community Planning and
Development”.

Community Development Loan Guarantees Program Account
The bill appropriates $14 million to cover the cost of
guaranteed loans.

Brownfields Redevelopment
For the Economic Development Grants for Brownfields
redevelopment projects, the bill provides a total of $25 million,
which remained unchanged from the FY 2002 appropriation level.

Home Investment Partnerships Program
The bill appropriates $1,950,000,000 for the HOME Investment
Partnership Program, an increase of $103,960,000 from the
previous FY02 funding of $1,846,040,000.
Homeless Assistance Grants
For the emergency shelter grants program, the supportive
housing program, the section 8 moderate rehabilitation single
room occupancy program, and the shelter plus care program, the
bill provides $1,215,025,000 in funding, and specifically
appropriates $193 million of the total for the renewal of
expiring shelter plus care grants. This appropriation is an
increase of $92.5 million from FY02 funding of $1,122,525,000.

Housing Programs: Housing for Special Populations
The bill provides $1,033,801,000 for assistance for the
purchase, construction, acquisition, or development of additional
public and subsidized housing units for low income families not
provided for otherwise.

Rental Housing Assistance
The bill reduces, by no more than $100 million in
uncommitted balances of authorizations of contract authority, the
limitation otherwise applicable to the maximum payments that may
be required in any fiscal year by all contracts entered into
under section 236 of the National Housing Act.

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

For NASA, the Senate bill would provide total funding of
$15.1 billion, a $300 million boost over the FY 2002 level.
Within NASA, the account for Human Space Flight would receive
provide $6.1 billion. The total is down from a $6.9 billion level
for Human Space Flight in FY 2002. It should be noted that NASA
will continue to restructure internally, and funds will be
shifted between the primary internal program functions. The
Senate bill provides that the account for Science, Aeronautics
and Technology would receive a total of $9 billion in FY 2003.

NATIONAL SCIENCE FOUNDATION

Total funding for NSF would rise to $5.26 billion under the
Senate’s bill, up from $4.8 billion in 2002. Research and Related
Activities funding at NSF would be set at $4.1 billion,
approximately a $500 million increase over the FY 2002 level.
(Bill language specifies that $85 million of these funds shall be
made available for a comprehensive research initiative on plant
genomes for “economically significant crops.”) The bill provides
$59.3 million for the acquisition, construction, commissioning,
and upgrading of major research equipment, facilities, and other
such capital assets – an amount less than half the $139 million
provided in FY 2002. For Education and Human Resources, the bill
provides $933 million, a substantial increase from the $875
million provided in 2002.

DEPARTMENT OF AGRICULTURE
On July 25,2002, the Senate Agriculture Appropriations
Subcommittee reported the Department of the Agriculture, Rural
Development, Food and Drug Administration , and Related Agencies
Appropriations for Fiscal Year 2003, S. 2801 (Committee Report
107-223). It subsequently unanimously passed the Senate
Appropriations Committee by a 29-0 vote.
A modified version of the Senate Agriculture Appropriations
were then added to the Senate’s Omnibus bill, H.J. Res 2, which
combines all eleven FY2003 unfinished spending bills into one
measure.

Animal And Plant Health Inspection Services
Invasive Species
Invasive weeds and some pest species severely afflict US
agricultural production, costing hundreds of billions in damages
every year. The Omnibus bill provides $735,673,000, of which
$4,103,000 is to be available for the control of outbreaks of
insects, plant diseases, and animal diseases. The bill also
authorizes the Department of Agriculture to collect fees to cover
the total costs of providing technical assistance, goods, or
services requested by States in fiscal year 2003.

Cooperative State Research, Education, And Extension Service
Research And Education Activities
Omnibus language provides $651,411,000 for research and
education activities under this section. These programs benefit
communities by promoting partnerships between academia and
stakeholders to advance research, extension and higher education
in food, agricultural, environmental, and human sciences.
Although nothing is specified in the Omnibus, Senate
Appropriations Report language from last year included funds for
the following California based CSREES programs:
Exotic pest diseases $1,800,000
Ozone Air Quality $400,000
Pierce’s disease $2,500,000
Sudden Oak Death $150,000
Sustainable agriculture $400,000
Viticulture consortium (NY PA) $1,600,000

Rural Development
Rural Community Advancement Program
The Omnibus bill funds the Rural Community and Advancement
Program at $867,176,000 to provide direct loans, loan guarantees,
and grants improving facilities and services for rural residents.
$20 million is to be made available to assist the Colonias along
the US-Mexico border.

Distance Learning And Telemedicine Program
The Omnibus bill includes $51,941,000 for the Distance
Learning and Telemedicine Program, $20 million more than the
President’s budget request. This program provides incentives in
the form of loans and grants to advance the quality of
telecommunications technology in rural America. Although the
language in the Omnibus bill does not address the issue, the
Senate Appropriations report gave consideration to Fresno
Community Medical Centers for loan and grant applications.

Domestic Food and Nutrition Programs
The Omnibus bill recommends $10,580,169,000 for the National
School Lunch and Child Nutrition program, $4 million more than
the President’s budget request. $4,751,000,000 is to remain
available in special supplemental funds for the Women, Infants,
and Children program activities (WIC), $403 million over FY
2002’s allocation.

Food Stamps
Remaining consistent with Senate Appropriations Committee
recommendations, the Omnibus bill appropriates $26,289,692,000 in
mandatory funds for the federal Food Stamp Program, an increase
of $3.297 billion above FY 2002 levels and $40 million above the
Administration’s FY 2002 request.

Commodity Futures Trading Commission
The Omnibus provides $93,985,000 for the CFTC, $450,000 less
than the Senate Appropriations Committee’s recommended level of
$94,435,000. This independent agency was set up to protect and
promote the futures and commodity options markets’ interests by
improving financial planning, efficiency, distribution,
consumption and cost-effective marketing. CFTC activities are
carried out in Los Angeles and four other locations nationally.

General Provisions
Section 705 makes new obligational authority available until
expended for the following appropriations items: the Animal and
Plant Health Inspection Service, the contingency fund to meet
emergency conditions, the fruit fly program, emerging plant
pests, integrated systems acquisition project, boll weevil
program, up to 25 percent of the screwworm program, and up to
$2,000,000 for costs associated with collocating regional
offices.

DEPARTMENT OF LABOR
Training and Employment Services
For Training and Employment Services, the omnibus bill
provides a total of $2,657,084,000, a decrease of $2,972,916,000
in comparison to $5.63 billion in funding provided in the FY02
conference report. The bill includes $4,786,000 for migrant and
seasonal housing. The bill also provides $2,463,000,000 in
separate funding for the Workforce Investment Act.

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Disease Control and Prevention
The Senate omnibus bill provides $4.3 billion for the
Centers for Disease Control and Prevention.

National Institutes of Health
The Senate breaks out spending levels for the components of
the National Institutes of Health as follows: National Cancer
Institute $4.6 billion; National Heart, Lung, And Blood Institute
$2.8 billion; National Institute of Dental and Craniofacial
Research $374 million; National Institute of Diabetes and
Digestive and Kidney Diseases $1.6 billion; National Institute of
Neurological Disorders and Stroke $1.46 billion; National
Institute of Allergy and Infectious Diseases $3.7 billion;
National Institute of General Medical Sciences $1.85 billion;
National Institute of Child Health and Human Development $1.2
billion; National Eye Institute $634 million; National Institute
of Environmental Health Sciences $617 million; National Institute
on Aging $1 billion; National Institute of Arthritis and
Musculoskeletal And Skin Diseases $489 million; National
Institute on Deafness and Other Communication Disorders $373
million; National Institute of Nursing Research $131 million;
National Institute on Alcohol Abuse and Alcoholism $418,773,000;
National Institute on Drug Abuse $968 million; National Institute
of Mental Health $1.35 billion; National Human Genome Research
Institute $468 million; National Institute of Biomedical Imaging
and Bioengineering $283 million; National Center For Research
Resources $1.16 billion; National Center For Complementary and
Alternative Medicine $114 million; National Center on Minority
Health And Health Disparities $187 million; John E. Fogarty
International Center $61 million; and the National Library of
Medicine $302 million. In addition, the bill provides $607
million for NIH construction activities.

Substance Abuse and Mental Health Services
The Senate bill includes a slight reduction to $3.12 billion
from $3.14 billion last year for substance abuse and mental
health services. This account is the source of formula funding
for the Substance and Mental Health Block Grant, of which
California receives nearly 15 percent ($235 million in FY 2001).

Centers for Medicare and Medicaid Services
Funding for Medicare and Medicaid is ongoing, and not
subject to annual appropriations. The Senate bill predicts
expenditures of $112 billion in FY 2003.

Administration for Children and Families
The bill provides $2.475 billion for child support
enforcement and family support programs. For Low-Income Home
Energy Assistance, the bill provides $1.7 billion. In addition,
during Senate consideration an amendment was adopted adding
another $300 million to the program.
The Senate would provide $432 million for refugee and
entrant assistance, a large share of which is typically expended
in California. The level constitutes a reduction from the $460.2
million level of 2002.
The bill would provide a total of $2.1 billion for the Child
Care and Development Block Grant, the same level as last year, of
which California typically receives slightly more than 12%.
For the Social Services Block Grant, of which California
also receives slightly more than 12%, the Senate bill provides
$1.7 billion.
For Head Start, the Senate provides $6.667 billion for Head
Start, an increase of $129 million from the $6.538 billion level
of 2002. California receives roughly 12.4% of Head Start funds.
For the Community Services Block Grant, of which California
typically receives about 9%, the bill provides $740 million.
The bill anticipates expenditures of $4.855 billion in the
current year and $1.746 billion in the first quarter of 2004,
providing level funding for foster care and adoption assistance.
Historically, California has received nearly one fourth of foster
care funds and somewhat more than 12% of adoption assistance
funds.

OTHER PROVISIONS

Treasury-Postal – With the bill component derived from the
Treasury-Postal Service Appropriations, language provides $23.9
million for a United States Courthouse Annex in San Diego. It
also provides $93.2 million for alterations and repairs to the
Federal Building in Los Angeles, as well as $20.3 million for
alterations and repairs to the Appraisers Building in San
Francisco and $5.7 million for alterations to the U.S. Border
Station in Tecate.
———————
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Institute provides periodic bulletins regarding current activity on Capitol
Hill which directly impacts our state. Bulletins are published weekly
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______________________________________________________________
Tim Ransdell, California Institute for Federal Policy Research
419 New Jersey Ave., SE, Basement Level, Washington, DC 20003
Voice: 202-546-3700 — Fax: 202-546-2390 — Cell: 202-425-3700
Web:
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