Order Code RL31803 CRS Report for Congress Received through the CRS Web Appropriations for FY2004: Labor, Health and Human Services, and Education Updated July 18, 2003 Paul M. Irwin Specialist in Social Legislation Domestic Social Policy Division Congressional Research Service ˜ The Library of Congress Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. The process begins with the President’s budget request and is bound by the rules of the House and Senate, the Congressional Budget and Impoundment Control Act of 1974 (as amended), the Budget Enforcement Act of 1990, and current program authorizations. This report is a guide to one of the 13 regular appropriations bills that Congress considers each year. It is designed to supplement the information provided by the House and Senate Labor, Health and Human Services, and Education Appropriations Subcommittees. It summarizes the current legislative status of the bill, its scope, major issues, funding levels, and related legislative activity. The report lists the key CRS staff relevant to the issues covered and related CRS products. This report is updated as soon as possible after major legislative developments, especially following legislative action in the committees and on the floor of the House and Senate. NOTE: A Web version of this document with active links is available to congressional staff at: [http://www.crs.gov/products/appropriations/apppage.shtml]. Appropriations for FY2004: Labor, Health and Human Services, and Education Summary This report tracks the progress of the bill providing FY2004 appropriations for the Departments of Labor, Health and Human Services, and Education, and Related Agencies (L-HHS-ED). This legislation provides discretionary funds for three federal departments and related agencies. The report summarizes L-HHS-ED discretionary funding issues but not authorization or entitlement issues. On February 3, 2003, the President submitted the FY2004 budget request to the Congress. The L-HHS-ED request is $135.6 billion in discretionary funds; the comparable FY2003 amount is $134.7 billion, enacted primarily through P.L. 108-7. On July 10, 2003, the House amended and passed its version of the FY2004 bill, H.R. 2660 (H.Rept. 108-188), with a discretionary total of $138.3 billion. On June 26, 2003, the Senate Committee on Appropriations reported its version, S. 1356 (S.Rept. 108-81), with a discretionary total of $138.0 billion. Department of Labor (DOL): DOL discretionary appropriations are $11.8 billion in FY2003, the FY2004 request is for $11.6 billion, the House bill is for $11.7 billion, and the Senate bill is for $11.8 billion. Programs include the Workforce Investment Act and the Bureau of International Labor Affairs (ILAB). Department of Health and Human Services (HHS): HHS discretionary appropriations are $60.1 billion in FY2003, the FY2004 request is $60.9 billion, the House bill is $61.2 billion, and the Senate bill is $61.2 billion. Major programs include the National Institutes of Health (NIH), Health Professions, Children’s Hospital Graduate Medical Education, Community Health Centers, Community Access, Ryan White AIDS, Centers for Disease Control and Prevention (CDC), Substance Abuse and Mental Health Services Administration (SAMHSA), LowIncome Home Energy Assistance Program (LIHEAP), Head Start, Promoting Safe and Stable Families, and the Public Health and Social Services Emergency Fund. Department of Education (ED): ED discretionary appropriations are $53.1 billion in FY2003, $53.2 billion is requested, the House bill is $55.4 billion, and the Senate bill is $54.6 billion. Major programs include Title I Part A Grants to Local Educational Agencies, Individuals with Disabilities Education Act (IDEA) Part B Grants to States, Reading First, Teacher Quality, Impact Aid, 21st Century Community Learning Centers, Rural Education, Fund for the Improvement of Education (FIE), Perkins Vocational Education, and Reading First State Grants. Related Agencies: Discretionary appropriations for related agencies are $9.6 billion in FY2003, $9.9 billion is requested for FY2004, the House bill is $10.0 billion, and the Senate bill is $10.3 billion. Major programs include the Corporation for Public Broadcasting (CPB), Supplemental Security Income (SSI), Corporation for National and Community Service (CNCS), and Administrative Expenses of the Social Security Administration (SSA). Key Policy Staff for L-HHS-ED Appropriations Area of Expertise Name Coordinator Paul M. Irwin Telephone 7-7573 Department of Labor Job training and employment services Labor market information Labor standards enforcement Mine Safety and Health Administration Occupational Safety and Health Administration Older Americans Act, employment programs Pension and Welfare Benefits Trade Adjustment Assistance Unemployment compensation Welfare-to-Work Workforce Investment Act Ann Lordeman Linda Levine William G. Whittaker Edward B. Rappaport Edward B. Rappaport Carol V. O’Shaughnessy Paul J. Graney Paul J. Graney Celinda Franco Gene Falk Ann Lordeman 7-2323 7-7756 7-7759 7-7740 7-7740 7-7329 7-2290 7-2290 7-7360 7-7344 7-2323 Department of Health and Human Services Abortion, legal issues Abortion, legal issues Abortion procedures AIDS, Ryan White programs Bioterrorism, HHS funding Bioterrorism, HHS funding Bioterrorism, HHS funding Cancer research Centers for Disease Control and Prevention Child care and development Child welfare Child welfare Cloning, Stem Cell Research Community Health Centers Family Planning, Title X Head Start Health professions education and training Immigration and refugee policy Immunization Maternal and Child Health Block Grant Medicaid Medicare Needle exchange, AIDS NIH, health research policy NIH, health research policy Older Americans Act Social Services Block Grant State Children’s Health Insurance Program Stem Cell Research, Cloning Karen J. Lewis Jon Shimabakuro Judith A. Johnson Judith A. Johnson Holly Harvey C. Stephen Redhead Pamela W. Smith Judith A. Johnson Pamela W. Smith Melinda Gish Emilie Stoltzfus Karen Spar Judith A. Johnson Sharon Kearney Coleman Sharon Kearney Coleman Melinda Gish Bernice Reyes-Akinbileje Ruth Wasem Pamela W. Smith Sharon Kearney Coleman Elicia Herz Jennifer O’Sullivan Judith A. Johnson Pamela W. Smith Judith A. Johnson Carol V. O’Shaughnessy Melinda Gish Evelyne Baumrucker Judith A. Johnson 7-6190 7-7990 7-7077 7-7077 7-4913 7-2261 7-7048 7-7077 7-7048 7-4618 7-2324 7-7319 7-7077 7-7367 7-7367 7-4618 7-2260 7-7342 7-7048 7-7367 7-1377 7-7359 7-7077 7-7048 7-7077 7-7329 7-4618 7-8913 7-7077 Area of Expertise Name Substance Abuse and Mental Health Services Welfare reform Welfare reform C. Stephen Redhead Vee Burke Gene Falk Telephone 7-2261 7-7304 7-7344 Department of Education Adult education and literacy After-school programs Assessment in education Bilingual education Charter Schools Education block grants Education of the Disadvantaged, Title I Education technology English Language Acquisition Impact Aid Indian Education Pell Grants Reading programs Rehabilitation Act Safe and Drug-Free Schools and Communities School facilities Special education, IDEA Special education, IDEA, legal issues Student aid Student loans Teacher recruitment, preparation, and training 21st Century Community Learning Centers Vocational and Technical Education Paul M. Irwin Gail McCallion Wayne C. Riddle Jeffrey J. Kuenzi David Smole Rebecca R. Skinner Wayne C. Riddle Charmaine Jackson Jeffrey J. Kuenzi Rebecca R. Skinner Roger Walke James B. Stedman Gail McCallion Sidath Panangala Edith Fairman Cooper Susan Boren Richard N. Apling Nancy Lee Jones James B. Stedman Adam Stoll Jeffrey J. Kuenzi Gail McCallion Rebecca R. Skinner 7-7573 7-7758 7-7382 7-8645 7-0624 7-6600 7-7382 7-4894 7-8645 7-6600 7-8641 7-7356 7-7758 7-0623 7-7019 7-6899 7-7352 7-6976 7-7356 7-4375 7-8645 7-7758 7-6600 Related Agencies Corporation for National and Community Service (VISTA, Senior Corps) Corporation for Public Broadcasting Library Services Museum Services National Labor Relations Board National Labor Relations Board, legal issues Railroad Retirement Board Social Security Administration Supplemental Security Income Ann Lordeman 7-2323 Glenn McLoughlin Gail McCallion Susan Boren Gail McCallion Jon Shimabukuro Dawn Nuschler Geoffrey Kollmann Alexa Matthews 7-7073 7-7758 7-6899 7-7758 7-7990 7-6283 7-7316 7-7382 Contents Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 House Bill, H.R. 2660, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Senate Bill, S. 1356, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 President’s FY2004 Budget, as Submitted . . . . . . . . . . . . . . . . . . . . . . 1 Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Summary and Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Program Level and Current Year Appropriations . . . . . . . . . . . . . . . . . . . . . 3 Funding Changes Requested by the President . . . . . . . . . . . . . . . . . . . . . . . . 4 House Proposal, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Senate Proposal, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Earmarks for Specific Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 302(a) and 302(b) Allocation Ceilings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Advance Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Major Funding Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Department of Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 House Bill, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Senate Bill, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Department of Health and Human Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 House Bill, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Senate Bill, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Abortion: Funding Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Embryonic Stem Cell Research: Funding Restrictions . . . . . . . . . . . . 18 CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Department of Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 House Bill, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Senate Bill, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Pell Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Student Aid Program Administration . . . . . . . . . . . . . . . . . . . . . . . . . 25 IDEA Part B Grants to States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Forward Funding and Advance Appropriations . . . . . . . . . . . . . . . . . . 26 CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 House Bill, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Senate Bill, as Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Related Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 FY2004 Budget Resolution, H.Con.Res. 95/S.Con.Res. 23 . . . . . . . . . . . . 36 FY2003 Wartime Supplemental, P.L. 108-11 (H.R. 1559) . . . . . . . . . . . . . 36 FY2003 Omnibus Appropriations, P.L. 108-7 (H.J.Res. 2) . . . . . . . . . . . . . 37 FY2003 Reduction in Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111) . . . . . . . . . . 37 Appendix A: Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Appendix B: Scope of L-HHS-ED Appropriations . . . . . . . . . . . . . . . . . . . . . . 40 List of Tables Table 1. Legislative Status of Labor, Health and Human Services, and Education Appropriations, FY2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Table 2. Summary of L-HHS-ED Appropriations . . . . . . . . . . . . . . . . . . . . . . . . 3 Table 3. FY2004 302(b) Discretionary Allocations for L-HHS-ED . . . . . . . . . . . 9 Table 4. L-HHS-ED Discretionary Funding Trends from FY1999 . . . . . . . . . . 10 Table 5. Department of Labor Discretionary Appropriations . . . . . . . . . . . . . . . 12 Table 6. Detailed Department of Labor Appropriations . . . . . . . . . . . . . . . . . . . 14 Table 7. Department of Health and Human Services Discretionary Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Table 8. Detailed Department of Health and Human Services Appropriations . 21 Table 9. Department of Education Discretionary Appropriations . . . . . . . . . . . 23 Table 10. Detailed Department of Education Appropriations . . . . . . . . . . . . . . 29 Table 11. Related Agencies Discretionary Appropriations . . . . . . . . . . . . . . . . . 31 Table 12. Detailed Related Agencies Appropriations . . . . . . . . . . . . . . . . . . . . . 34 Table B.1. Scope of the L-HHS-ED Bill, FY2003 . . . . . . . . . . . . . . . . . . . . . . . 40 Appropriations for FY2004: Labor, Health and Human Services, and Education Most Recent Developments House Bill, H.R. 2660, as Passed. On July 10, 2003, the House amended and passed H.R. 2660 (H.Rept. 108-188) by a vote of 215 to 208; the bill would provide $138.3 billion in discretionary appropriations for Labor, Health and Human Services, and Education (L-HHS-ED) programs. Senate Bill, S. 1356, as Reported. On June 26, 2003, the Senate Committee on Appropriations reported S. 1356 (S.Rept. 108-81) by a vote of 25 to 4; the bill would provide $138.0 billion in discretionary appropriations for L-HHS-ED programs. President’s FY2004 Budget, as Submitted. On February 3, 2003, the President submitted the FY2004 budget request to Congress, proposing $135.6 billion in discretionary funds for L-HHS-ED programs. The comparable FY2003 L-HHS-ED discretionary total was $134.7 billion. Status Table 1. Legislative Status of Labor, Health and Human Services, and Education Appropriations, FY2004 Subcommittee markup House Senate Conference House House Senate Senate Confer. report approval report passage report passage report House Senate 6/25/03 6/26/03 33-23 7/10/03 6/19/03 6/25/03 25-4 H.Rept. 215-208 11-7 11-3 S.Rept. 108-188 (b) 108-81 (a) — — — — Public law — a The House Committee on Appropriations approved its version of the FY2004 L-HHS-ED appropriations on June 25, and ordered the bill reported. H.R. 2660 (H.Rept. 108-188) was introduced and reported on July 8, 2003. b The House passed H.Res. 312 (H.Rept. 108-192), the rule for the floor consideration of H.R. 2660, by voice vote; see Congressional Record, Daily Edition, July 9, 2003, p. H6396-6417. The House amended and passed H.R. 2660; see Congressional Record, Daily Edition, July 10, 2003, p. H64706581. House approval was by a vote of 215-208 (Roll Call no. 353), p. H6581. CRS-2 Data Note. In this report, data on FY2003 and FY2004 appropriations are based on the June 25, 2003 table of the House Committee on Appropriations, except for FY2004 Senate amounts which are based on June 25, 2003 table of the Senate Committee on Appropriations. In most cases data represent net funding for specific programs and activities and take into account current and forward funding and advance appropriations; however, all data are subject to additional budgetary scorekeeping. Except where noted, budget data refer only to those programs within the purview of the L-HHS-ED appropriations bill, and not to all programs within the jurisdiction of the relevant departments and agencies. It should be noted that FY2003 amounts reflect reductions required for most FY2003 discretionary appropriations under the provisions of P.L. 108-7; for additional information, see “FY2003 Reduction in Funds,” p. 37. FY2003 Appropriations. FY2003 L-HHS-ED appropriations were enacted in several stages, including: eight continuing resolutions — P.L. 107-229, as amended; regular FY2003 L-HHS-ED appropriations — P.L. 108-7 (H.J.Res. 2, H.Rept. 108-10), February 20, 2003; and the Emergency Wartime Supplemental Appropriations Act, 2003 — P.L. 108-11 (H.R. 1559, H.Rept. 108-76), April 16, 2003. For additional legislative details, see “Related Legislation,” page 36. Summary and Key Issues This report describes the President’s proposal for FY2004 appropriations for L-HHS-ED programs, as submitted to the Congress February 3, 2003, and the congressional response to that proposal. It compares the President’s FY2004 request to the FY2003 L-HHS-ED amounts. It tracks legislative action and congressional issues related to the FY2004 L-HHS-ED appropriations bill, with particular attention paid to discretionary programs. In addition, the report summarizes activities related to the annual budget process, such as the congressional budget resolution, continuing resolutions, and supplemental appropriations (see “Related Legislation,” page 36). However, the report does not follow specific funding issues related to mandatory L-HHS-ED programs — such as Medicare or Social Security — nor will it follow the authorizing legislation necessary prior to funding some of the President’s initiatives. For a glossary of budget terms, see “Appendix A: Terminology,” page 39. For a discussion of the jurisdiction of the L-HHS-ED bill, see “Appendix B: Scope of the L-HHS-ED Bill,” page 40. The L-HHS-ED bill typically is one of the more controversial of the 13 regular appropriations bills, not only because of the size of its funding total and the scope of its programs, but also because of the continuing importance of various related issues, such as restrictions on the use of federal funds for abortion and stem cell research. This bill provides most of the discretionary funds for three federal departments and several related agencies including the Social Security Administration (SSA). Of the 13 annual appropriations bills, the L-HHS-ED bill is the largest single source of discretionary funds for domestic federal programs; the Defense bill is the largest source of discretionary funds among all federal programs. For FY2003, the L-HHS-ED bill accounted for $130.2 billion (16.6%) and the Defense bill accounted for $371.0 billion (47.4%) of the estimated $782.2 billion total for all federal CRS-3 discretionary budget authority, as reported in Budget of the United States Government Fiscal Year 2004, Table S-8. This section summarizes the larger funding changes proposed for L-HHS-ED and related issues such as earmarks for specific projects, 302(b) allocations, and advance appropriations. Later sections will provide additional details for each L-HHS-ED department. Program Level and Current Year Appropriations Table 2 summarizes the L-HHS-ED appropriations for FY2004, including both discretionary and mandatory appropriations. The table shows various aggregate measures of FY2003 enacted and FY2004 proposed L-HHS-ED appropriations, including discretionary program level, current year, and advance appropriations, as well as scorekeeping adjustments. Table 2. Summary of L-HHS-ED Appropriations ($ in billions) FY2003 enacted a FY2004 request FY2004 House FY2004 Senate FY2004 enacted Program level: current bill for any year $134.7 $135.6 $138.3 $138.0 — Current year: current year from any bill 132.3 138.0 138.0 137.6 — Advances for future years (from the current bill) 21.5 18.9 19.2 19.3 — Advances from prior years (from previous bills) 19.2 21.5 19.3 19.3 — Scorekeeping adjustments -0.1 -0.2 -0.4 -0.4 — Type of budget authority Discretionary appropriations Current year discretionary and mandatory funding Discretionary 132.3 138.0 138.0 137.6 — Mandatory 290.8 325.9 332.0 326.0 — Total current year 423.1 463.9 470.0 463.6 — $478.4 $472.2 — Grand total of funding for L-HHS-ED bill, any year Grand total any year $431.0 $469.7 Source: Amounts are based on the June 25, 2003 table of the House Committee on Appropriations, except for FY2004 Senate amounts which are based on the June 25, 2003 table of the Senate Committee on Appropriations. Note: Both FY2003 and FY2004 mandatory amounts are estimates that are subject to adjustments after the close of their respective fiscal years. a The FY2003 amounts are post-reduction and based on P.L. 108-7. CRS-4 ! ! ! ! Program level appropriations reflect the total discretionary appropriations in a given bill, regardless of the year in which they will be spent, and therefore include advance funding for future years. Unless otherwise specified, appropriations levels in this report refer to program level amounts. Current year appropriations represent discretionary appropriations in a given bill for the current year, plus discretionary appropriations for the current year that were enacted in prior years. Current year discretionary appropriations are similar to the amount counted for the 302(b) allocations ceilings (discussed later, page 8). Advance appropriations are funds that will not become available until after the fiscal year for which the appropriations are enacted — for example, funds included in the FY2004 Act that cannot be spent before FY2005 at the earliest (discussed later, page 9). Scorekeeping adjustments are made to account for special funding situations; the Congressional Budget Office (CBO) monitors these adjustments. Because appropriations may consist of mixtures of budget authority enacted in various years, two summary measures are frequently used — program level appropriations and current year appropriations. How are these measures related? For an “operational definition,” program level funding equals (a) current year, plus (b) advances for future years, minus (c) advances from prior years, and minus (d) scorekeeping adjustments. Table 2 shows these amounts, along with current year funding for mandatory programs and some grand totals for the L-HHS-ED bill. Funding Changes Requested by the President With regard to the President’s budget, the primary issues raised during congressional consideration of any appropriations request generally relate to proposed funding changes. The summary below notes changes proposed for FY2004 discretionary budget authority of at least $100 million compared to the FY2003 amount. Viewing this list by itself should be done with caution, since the relative impact of a $100 million funding change to a $500 million program (a 20% increase or decrease) is greater than a $100 million change to a $5 billion program (a 2% increase or decrease). Later in this report, the discussions of budgets for individual departments include tables to compare the FY2004 request with the FY2003 funding for many of the major programs in the L-HHS-ED bill. Overall, $135.6 billion in discretionary appropriations at the program level is requested for L-HHS-ED, a 0.7% increase over the comparable FY2003 amount of $134.7 billion. At the time that the President’s FY2004 request was submitted to the Congress (February 3, 2003), the regular FY2003 L-HHS-ED appropriations provided by P.L. 108-7, had not yet been enacted (February 20, 2003). ! For Department of Labor (DOL) programs, the FY2004 request includes a reduction of $248 million for job training programs authorized by the Workforce Investment Act of 1998 (WIA) and a reduction of $136 million for the Bureau of International Labor Affairs (ILAB). Overall, $11.6 billion in discretionary CRS-5 appropriations is requested for DOL, a 1.7% decrease compared to the FY2003 amount of $11.8 billion. ! For Department of Health and Human Services (HHS) programs, the request proposes an increase of $681 million for National Institutes of Health (NIH). An additional $122 million is proposed for Community Health Centers; however, the $104 million Community Access Program would be eliminated. Other increases include an additional $169 million for the Centers for Medicare and Medicaid Services (CMS) Program Management, $311 million for LowIncome Home Energy Assistance Program (LIHEAP), $148 million for Head Start, and $101 million for Safe and Stable Families. Requested decreases include reductions of $312 million for Health Professions, $255 million for Substance Abuse and Mental Health Services Administration (SAMHSA), and $151 million for Community Services Block Grant (CSBG). The request would eliminate the $295 million Health Care and Other Facilities program. Overall, $60.9 billion in discretionary appropriations is requested for HHS, a 1.3% increase over the FY2003 amount of $60.1 billion. ! For Department of Education (ED) programs, the request would provide increases of $1.4 billion for Pell Grants, $666 million for Title I Part A Grants to Local Educational Agencies (LEAs) for the Education of the Disadvantaged, and $655 million for Special Education Part B Grants to States under the Individuals with Disabilities Education Act (IDEA). Proposed decreases would include reductions of $172 million for Impact Aid, $394 million for 21st Century Community Learning Centers (21CCLC), $414 million for the Fund for the Improvement of Education (FIE), $326 million for the Perkins Vocational Education program, and $132 million for the Fund for the Improvement of Postsecondary Education (FIPSE). Funding would be eliminated for the $168 million Rural Education and $161 million Smaller Learning Communities programs. Discretionary funding of $842 million is requested to support the creation of a new unified discretionary account for the administration of federal student aid programs. This proposal would be offset in part by a savings of $795 million from the consolidation of certain related expenses for student aid administrative activities. Overall, $53.2 billion in discretionary appropriations is requested for ED, a 0.2% increase over the FY2003 amount of $53.1 billion. ! For the related agencies, the budget proposes increases of $218 million for Supplemental Security Income (SSI) discretionary activities and $427 million for the Limitation on Administrative Expenses at the Social Security Administration (SSA). The budget would not provide a 2-year advance appropriations for the Corporation for Public Broadcasting (CPB) for FY2006; $390 million was provided in the FY2003 bill (for FY2005). Overall, CRS-6 $9.9 billion in discretionary appropriations is requested for related agencies, a 3.1% increase over the FY2003 amount of $9.6 billion. House Proposal, as Passed On July 8, 2003, the House Committee on Appropriations reported its version of the L-HHS-ED appropriations for FY2004, as H.R. 2660 (H.Rept. 108-188). On July 10, 2003, the House amended and passed H.R. 2660. House Highlights. Overall, the House bill would provide program level discretionary appropriations of $138.3 billion for L-HHS-ED programs. The comparable amount requested by the President is $135.6 billion; the FY2003 amount is $134.7 billion. The House bill differs from the President’s request in a number of details. ! ! For DOL programs, the House bill proposes that WIA programs would be funded at $5.1 billion, $125 million more than the FY2004 request. Overall, the House bill would provide $11.7 billion for discretionary appropriations for DOL, $0.1 billion more than requested but $0.1 billion less than the FY2003 amount. For HHS programs, the House bill would fund Health Professions at a level $382 million higher than requested; the Children’s Hospital Graduate Medical Education at $106 million higher; and the CDC at $322 million higher. The request would eliminate the Community Access program; the House would maintain FY2003 funding at $104 million. The House bill would reduce LIHEAP funding by $200 million; Safe and Stable Families would be $100 million less than the request; and the Public Health and Social Services Emergency Fund (PHSSEF) would receive $119 million less than requested. Overall, the House bill would provide $61.2 billion for discretionary appropriations for HHS, $0.3 billion more than requested and $1.1 billion more than the FY2003 amount. ! For ED programs, compared to the FY2004 request by the President, the House bill would provide $1.5 billion more for all ESEA programs in aggregate, $222 million more for Impact Aid, $400 million more for 21st Century Community Learning Centers, $107 million more for FIE, $345 million more for IDEA Part B Grants to States, and $319 million more for Perkins Vocational Education. The House would maintain funding for two programs that would be eliminated under the request: Rural Education and Smaller Learning Communities. The House bill would not agree to the President’s request to consolidate student loan administrative activities. Overall, the House bill would provide $55.4 billion for discretionary appropriations for ED, $2.2 billion more than requested and $2.3 billion more than the FY2003 amount. ! For related agencies, the House bill would provide a 2-year advance appropriations of $330 million for the CPB, which would not receive funding under the request. It would provide $107 million less than CRS-7 requested for the SSA Limitation on Administrative Expenses. Overall, the House bill would provide $10.0 billion for discretionary appropriations for related agencies, $0.1 billion more than the amount requested and $0.4 million more than the FY2003 amount. Senate Proposal, as Reported On June 26, 2003, the Senate Committee on Appropriations reported its version of the FY2004 L-HHS-ED appropriations, as S. 1356 (S.Rept. 108-81). Senate Highlights. Overall, the FY2004 Senate bill would provide program level discretionary appropriations of $138.0 billion for L-HHS-ED programs. The comparable amount requested by the President is $135.6 billion. The House bill would provide $138.3 billion; the FY2003 amount is $134.7 billion. ! ! For DOL programs, the Senate bill differs in a number of respects from the House bill, but not by as much as $100 million for any single program. Overall, the Senate bill would provide $11.8 billion in discretionary appropriations for DOL, $0.1 billion more than the House bill, $0.2 billion more than requested, and the same as the FY2003 amount. For HHS programs, the Senate bill differs in several respects from the House bill. The Senate bill would provide $319 million more than the House bill for NIH, $200 million more for LIHEAP, and $151 million more for the Community Services Block Grant. The Senate would provide $157 million less than the House bill for the CDC, and $171 million less for SAMHSA. Funding would be eliminated for the $104 million Community Access program. The Children’s Hospital Graduate Medical Education would not receive specific funding but would be consolidated with Health Professions. Overall, the Senate bill would provide $61.2 billion in discretionary appropriations for HHS, the same as the House bill, but $0.3 billion more than requested and $1.1 billion more than the FY2003 amount of $60.1 billion. ! For ED programs, the Senate bill differs by at least $100 million in discretionary appropriations for the aggregate funding level for all ESEA programs. These programs would be funded at $23.4 billion, $591 million less than the House amount, but $948 million more than requested; the FY2003 amount is $23.6 billion. Overall, the Senate bill would provide $54.6 billion in discretionary appropriations for ED, $0.8 billion less than the House amount, but $1.4 billion more than requested, and $1.5 billion more than the FY2003 amount of $53.1 billion. ! For related agencies, the Senate bill differs with the House bill for a number of programs, but with only one program is the difference as great as $100 million. The Senate bill would provide $5.4 billion for the SSA Limitation on Administrative Expenses, $107 million more than what the House bill would provide. Overall, the Senate CRS-8 bill would provide $10.3 billion in discretionary appropriations for the related agencies, $0.3 billion more than the House bill, $0.4 billion more than requested, and $0.7 billion more than the FY2003 amount of $9.6 billion. Earmarks for Specific Projects The earmarking of funds for specific projects in appropriations bills has become a topic of contention between the Administration and the Congress, and the issue extends to L-HHS-ED projects. In some instances, L-HHS-ED appropriations are earmarked for specific recipients or locations, either in the public law or in the conference report. For the most part, the authorizing statute gives the general purpose for such earmarks, such as “projects for the improvement of postsecondary education,” but subsequently an appropriations act or conference report designates specific recipients by means of earmarks. Such designations usually bypass standard administrative procedures for an agency’s competitive distribution of awards. For FY2002, P.L. 107-116 (conference report H.Rept. 107-342) included an estimated 1,600 earmarks for specific L-HHS-ED projects for which an estimated $1.0 billion was appropriated. For FY2002, the L-HHS-ED appropriation was $411.8 billion in aggregate, and represented $127.2 billion for current year discretionary funds. These earmarks therefore represent 0.2% of the L-HHS-ED total — and 0.8% of the discretionary L-HHS-ED total — in FY2002. The President has urged the elimination of congressional earmarks in appropriations in recent years, but the Congress has continued the practice. 302(a) and 302(b) Allocation Ceilings The maximum budget authority for annual L-HHS-ED appropriations is determined through a two-stage congressional budget process. In the first stage, the Congress agrees to overall spending totals in the annual concurrent resolution on the budget. Subsequently, these amounts are allocated among the various committees, usually through the statement of managers for the conference report on the budget resolution. These amounts are known as the 302(a) allocations. They include the discretionary totals available to the House and Senate Committees on Appropriations for enactment in annual appropriations. For FY2004, the Congress agreed to the budget resolution, H.Con.Res. 95, conference report H.Rept. 108-71, on April 11, 2003. The resolution provides for an FY2004 discretionary total of $784.5 billion. For procedural information, see CRS Report 98-721, Introduction to the Federal Budget Process. In the second stage of the process, the appropriations committees allocate the 302(a) discretionary funds among their subcommittees for each of the 13 annual appropriations bills. These amounts are known as the 302(b) allocations. These allocations must add up to no more than the 302(a) discretionary allocation, and form the basis for enforcing budget discipline, since any bill reported with a total above the ceiling is subject to a point of order. The 302(b) allocations can and often do get adjusted during the year as the various appropriations bills progress toward final enactment. The initial 302(b) discretionary allocations for the FY2004 appropriations bills were agreed to by the House and Senate Committees on CRS-9 Appropriations on June 17, 2003, as shown in Table 3. Comparable amounts for FY2003 and the President’s FY2004 budget are also shown. Both the 302(a) and the 302(b) allocations regularly become contested issues in their own right. Table 3. FY2004 302(b) Discretionary Allocations for L-HHS-ED (budget authority in billions of dollars) FY2003 comparable FY2004 request comparable FY2004 House allocation FY2004 Senate allocation FY2004 enacted comparable $132.1 $137.6 $138.0 $137.6 — Source: National Journal, CongressDaily, June 20, 2003. The FY2003 comparable amount excludes the FY2003 Wartime Supplemental, P.L. 108-11. Advance Appropriations Advance appropriations occur when funding enacted in one fiscal year cannot be spent until a subsequent fiscal year; see CRS Report RS20441, Advance Appropriations, Forward Funding, and Advance Funding. For example, P.L. 108-7 which enacted FY2003 L-HHS-ED appropriations, provided $390 million for the Corporation for Public Broadcasting (CPB) for use in FY2005. Advance appropriations may be used to meet several objectives. These might include the provision of long-term budget information to recipients, such as state and local educational systems, to enable better planning of future program activities and personnel levels. The more contentious aspect of advance appropriations, however, is how they are counted in budget ceilings. Advance appropriations avoid the 302(a) and 302(b) allocation ceilings for the current year, but must be counted in the year in which it first becomes available. This procedure uses up ahead of time part of what will be counted against the allocation ceiling in future years. For an example of the impact of advance appropriations on program administration, see the discussion below in the section on ED (page 26). The FY1999 and FY2000 annual L-HHS-ED appropriations bills provided significant increases in advance appropriations for discretionary programs. From FY2000 onwards, these amounts stabilized at approximately $19 billion, or about 14 to 15% of L-HHS-ED discretionary appropriations. For FY2002, the President’s budget proposed the elimination of advance appropriations for federal discretionary programs, including those for L-HHS-ED programs; the Congress rejected that proposal, and it has not been repeated. For FY2004, the President’s request would provide L-HHS-ED advance appropriations of $18.9 billion; the House bill, $19.2 billion; and the Senate bill, $19.3 billion. From FY1998 to the present, the annual amounts of advance appropriations enacted in L-HHS-ED bills have been as follows: ! ! ! ! ! FY1998, $4.0 billion; FY1999, $8.9 billion; FY2000, $19.0 billion; FY2001, $18.8 billion; FY2002, $19.3 billion; CRS-10 ! ! ! ! FY2003, $19.2 billion; FY2004, as requested by the President, $18.9 billion; FY2004, as passed by the House, $19.2 billion; and FY2004, as reported in the Senate, $19.3 billion. Major Funding Trends The L-HHS-ED appropriations bills combine mandatory and discretionary funds; however, the Appropriations Committees fully control only the discretionary funds. Mandatory funding levels for programs included in the annual appropriations bills are modified through changes in the authorizing legislation. These changes typically are accomplished through the authorizing committees and combined into large, omnibus reconciliation bills. Table 4 shows the trend in discretionary budget authority under the L-HHS-ED appropriations for FY1999 through FY2003. Total L-HHS-ED discretionary funds increased by 45.5% during this 5-year period. The 5-year increase is reduced to an estimated 35.8% after adjustment for inflation by use of the Gross Domestic Product (GDP) deflator. When compared to all federal discretionary budget authority, the L-HHS-ED portion increased from 15.4% share of the federal total in FY1999 to an estimated 17.4% in FY2003. When compared to all federal budget authority, both discretionary and nondiscretionary (mandatory), the L-HHS-ED portion of the federal total increased during this period from 5.0% in FY1999 to an estimated 6.0% in FY2003. Table 4. L-HHS-ED Discretionary Funding Trends from FY1999 (budget authority in billions of dollars) Type of funds FY1999 FY2000 FY2001 FY2002 FY2003 estimate a L-HHS-ED discretionary $89.5 $87.1 $110.5 $123.7 $130.2 L-HHS-ED discretionary in estimated FY2003 dollars $95.9 $90.8 $113.3 $125.3 $130.2 L-HHS-ED % of all federal discretionary funds b 15.4% 14.9% 16.6% 16.8% 17.4% L-HHS-ED % of total federal budget authority 5.0% 4.8% 5.6% 5.9% 6.0% Total federal discretionary $581.8 $584.4 $663.8 $734.7 $749.0 Total federal budget authority $1,776.7 $1,824.9 $1,959.7 $2,090.1 $2,154.4 GDP deflator 1.0477 1.0768 1.0940 1.1080 1.1221 Source: Federal totals and the GDP deflator are based on the Budget of the United States Government Historical Tables Fiscal Year 2004, Tables 5.2, 5.4, and 10.1. The L-HHS-ED discretionary budget authority amounts are based on the Budget of the United States Government from various years, and therefore may not be completely comparable from year to year. a FY2003 estimates are based on the FY2003 budget request since FY2003 appropriations were not yet enacted at the time of submission of the FY2004 budget request in February 2003; FY2003 amounts do not include any supplemental appropriations and rescissions for L-HHS-ED and other bills that have been or may be enacted during FY2003. b Discretionary funds include both defense and non-defense activities. CRS-11 World Wide Web Sites General information on budget and appropriations may be found at these web sites. Specific L-HHS-ED agency sites are listed in relevant sections of this report. House Committees [http://www.house.gov/appropriations] [http://www.house.gov/budget/] Senate Committees [http://www.senate.gov/~appropriations/] [http://www.senate.gov/~budget/] Congressional Budget Office (CBO) [http://www.cbo.gov] Congressional Research Service (CRS) [http://www.crs.gov/products/appropriations/apppage.shtml] General Accounting Office (GAO) [http://www.gao.gov/] Government Printing Office (GPO) [http://w3.access.gpo.gov/usbudget/index.html] Office of Management & Budget (OMB) [http://www.whitehouse.gov/omb/budget/index.html] [http://www.whitehouse.gov/omb/legislative/sap/index.html] CRS-12 Department of Labor The FY2004 budget proposal for discretionary appropriations at the Department of Labor (DOL) is $11.6 billion, $0.2 billion (1.7%) less than the FY2003 appropriations of $11.8 billion, as shown in Table 5. The House bill, as reported, would provide $11.7 billion; as reported, the Senate bill would provide $11.8 billion. Table 5. Department of Labor Discretionary Appropriations ($ in billions) Funding Appropriations FY2003 enacted FY2004 request FY2004 House FY2004 Senate FY2004 enacted $11.8 $11.6 $11.7 $11.8 — Source: Amounts are based on the June 25, 2003 table of the House Committee on Appropriations, except for FY2004 Senate amounts which are based on the June 25, 2003 table of the Senate Committee on Appropriations. FY2003 amounts are post-reduction and based on P.L. 108-7. Amounts shown represent discretionary programs funded by L-HHS-ED appropriations; appropriations for mandatory programs are excluded. Mandatory DOL programs included in the FY2003 L-HHS-ED bill were funded at $3.1 billion, and consist of the Black Lung Disability Trust Fund ($1.0 billion), Federal Unemployment Benefits and Allowances ($1.0 billion), Advances to the Unemployment Insurance and Other Trust Funds ($0.5 billion), Special Benefits for Disabled Coal Miners ($0.4 billion), Employment Standards Administration Special Benefits programs ($0.2 billion), and Energy Employees Occupational Illness Fund ($0.1 billion). Key Issues President’s Request. The President’s FY2004 budget request for DOL proposes reductions in several job training programs, and the elimination of grants under the Bureau of International Labor Affairs (ILAB). Discretionary changes of at least $100 million requested for DOL programs under the President’s FY2003 budget include the following: ! A reduction of $248 million is requested for programs authorized by the Workforce Investment Act of 1998 (WIA), which is funded at $5.2 billion in FY2003. These reductions would include: a decrease of $49 million for Dislocated Worker Assistance State Grants, funded at $1.2 billion in FY2003; $29 million for Dislocated Worker Assistance Secretary’s Reserve, funded at $306 million in FY2003; and $110 million for other WIA federal activities, funded at $212 million in FY2003. No funds would be provided for the $77 million Migrant and Seasonal Farmworkers program or the $44 million Youth Opportunity Grants. On the other hand, $53 million more would be provided for Job Corps, funded at $1.5 billion in FY2003. CRS-13 ! The ILAB would be funded at $12 million, a reduction of $136 million; $148 million is provided in FY2003. Under the request, the ILAB grants program would be eliminated. House Bill, as Passed. The House bill is similar to the President’s request with the exception that WIA programs would be funded at $5.1 billion, $125 million more than requested but $123 million less than the FY2003 amount. In particular, Dislocated Workers Assistance programs, both State Grants and Secretary’s Reserve, would be level funded, and funding for Migrant and Seasonal Farmworkers would be set at $60 million, $17 million less than the FY2003 amount. Senate Bill, as Reported. For DOL programs, the Senate bill differs little from the House bill, and in no place by as much as $100 million. WIA programs would be funded at $5.1 billion, $39 million above the House proposal and $164 million above the President’s request. In particular, Dislocated Worker Assistance State Grants would be level funded, as would the Migrant and Seasonal Farmworkers program; however, the Dislocated Workers Assistance Secretary’s reserve would be funded at $277 million, the same as the request, but $29 million less than the House and the FY2003 amount. For the ILAB, the Senate bill would provide $108 million, $96 million more than the House or the request, but $40 million less than the FY2003 amount. CRS Products CRS Report 97-724, Ergonomics in the Workplace: Is It Time for an OSHA Standard?, by Edward Rappaport. CRS Report 97-536, Job Training Under the Workforce Investment Act: An Overview, by Ann Lordeman. CRS Report 95-742, Unemployment Benefits: Legislative Issues in the 108th Congress, by Celinda Franco. CRS Report RS21397, Unemployment Benefits: Temporary Extended Unemployment Compensation (TEUC) Program, by Celinda Franco. CRS Report RS20244, The Workforce Investment Act: Training Programs Under Title I at a Glance, by Ann Lordeman. World Wide Web Sites Department of Labor [http://www.dol.gov] [http://www.dol.gov/_sec/budget2004/overview-toc.htm] [http://www.dol.gov/_sec/budget2004/tablesa.htm#authority] Detailed Appropriations Table Table 6 shows the appropriations details for offices and major programs of DOL. CRS-14 Table 6. Detailed Department of Labor Appropriations ($ in millions) Office or major program FY2003 enacted a FY2004 request Employment and Training Administration (ETA) Training and Employment Services (TES), Workforce 899 900 Investment Act (WIA) Adult Training Grants to States WIA Youth Training 995 1,001 WIA Dislocated Worker 1,461 1,383 Assistance –Dislocated Worker Assistance, 1,155 1,106 State Grants (non-add) –Dislocated Worker Assistance, 306 277 Secretary’s Reserve (non-add) WIA Migrant and Seasonal 77 0 Farmworkers WIA Job Corps 1,513 1,566 WIA Youth Opportunity Grants 44 0 (YOG) WIA Other Federal Activities 212 102 WIA/TES subtotal 5,200 4,952 Community Service Employment 442 440 for Older Americans Federal Unemployment Benefits and Allowances, Trade 972 1,338 Adjustment and NAFTA Activities (mandatory) State Unemployment Insurance and Employment Service 2,634 2,651 Operations (SUI/ESO) Unemployment Compensation SUI/ESO Employment Service 842 875 SUI/ESO One-Stop Career 99 101 Centers SUI/ESO Work Incentives Grants 20 20 SUI/ESO subtotal 3,595 3,647 Advances to Unemployment Trust 463 467 Fund and other funds (mandatory) ETA Program Administration 175 183 ETA subtotal 10,770 11,027 Employees Benefits Security 116 129 Administration FY2004 House FY2004 Senate FY2004 enacted 900 900 — 1,045 1,001 — 1,461 1,432 — 1,155 1,155 — 306 277 — 60 77 — 1,541 1,541 — 0 0 — 114 5,077 165 5,116 — — 440 442 — 1,338 1,338 — 2,634 2,645 — 862 856 — 99 99 — 20 3,615 20 3,620 — — 467 467 — 172 11,049 179 11,162 — — 129 121 — CRS-15 Office or major program FY2003 enacted a Pension Benefit Guaranty Corporation (PBGC) 13 Administration PBGC program level (non-add) 193 Employment Standards Administration (ESA) ESA Salaries and Expenses 381 ESA Special Benefits 163 (mandatory) ESA Special Benefits for Disabled Coal Miners 397 (mandatory) ESA Energy Employees Occupational Illness Fund 105 (mandatory) ESA Black Lung Disability Trust 1,035 Fund (mandatory) ESA subtotal 2,081 Occupational Safety and Health 450 Administration (OSHA) Mine Safety and Health 273 Administration (MSHA) Bureau of Labor Statistics 492 Office of Disability Employment 47 Policy Departmental Management, 148 International Labor Affairs Departmental Management, Veterans Employment and 213 Training Departmental Management, Other 302 Departmental Management 663 subtotal Working Capital Fund 0 TOTALS, DEPARTMENT OF LABOR Total appropriations b 14,983 Current year: FY2004 Advance year: FY2005 FY2004 request FY2004 House FY2004 Senate FY2004 enacted 17 17 17 — 229 229 229 — 398 398 392 — 163 163 163 — 388 388 388 — 55 55 55 — 1,043 1,043 1,043 — 2,047 2,047 2,041 — 450 450 463 — 267 267 271 — 512 512 515 — 47 47 47 — 12 12 108 — 220 220 220 — 328 308 308 — 560 540 636 — 20 18 10 — 15,076 15,136 15,284 — 12,423 12,525 12,586 12,733 — 2,569 2,551 2,551 2,551 — Source: Amounts are based on the June 25, 2003 table of the House Committee on Appropriations, except for FY2004 Senate amounts which are based on the June 25, 2003 table of the Senate Committee on Appropriations. a The FY2003 amounts are post-reduction and based on P.L. 108-7. Appropriations totals include discretionary and mandatory funds, and may be subject to additional scorekeeping and other adjustments. b CRS-16 Department of Health and Human Services The FY2004 budget proposal for discretionary appropriations at the Department of Health and Human Services (HHS) is $60.9 billion, $0.8 billion (1.3%) more than the FY2003 appropriations of $60.1 billion, as shown in Table 7. The House bill, as reported, would provide $61.2 billion; as reported, the Senate would provide $61.2 billion as well. Table 7. Department of Health and Human Services Discretionary Appropriations ($ in billions) Funding Appropriations FY2003 enacted FY2004 request FY2004 House FY2004 Senate FY2004 enacted $60.1 $60.9 $61.2 $61.2 — Source: Amounts are based on the June 25, 2003 table of the House Committee on Appropriations, except for FY2004 Senate amounts which are based on the June 25, 2003 table of the Senate Committee on Appropriations. FY2003 amounts are post-reduction and based on P.L. 108-7. Amounts shown represent discretionary programs funded by L-HHS-ED appropriations; appropriations for mandatory programs are excluded. Mandatory HHS programs included in the L-HHS-ED bill are funded at $258.5 billion in FY2003, and consist primarily of Grants to States for Medicaid ($164.0 billion), Payments to Medicare Trust Funds ($81.5 billion, virtually all for Part B Supplementary Medical Insurance), Foster Care and Adoption ($6.6 billion), Family Support Payments to States ($4.0 billion), and Social Services Block Grant ($1.7 billion). Key Issues President’s Request. The President’s FY2004 budget request for HHS would focus increased support primarily for medical research, with smaller increases for selected substance abuse and family services programs. At the same time, it would reduce funding for programs for health professions, health care facilities, and community services. Discretionary spending changes of at least $100 million are requested for the following programs. ! ! An increase of $681 million is requested for the National Institutes of Health (NIH), which is funded at $27.0 billion in FY2003, to support activities that maintain and improve health through medical science. The FY2004 request follows a 5-year effort by the Congress to double the size of NIH funding, beginning at $13.6 billion in FY1998. For additional information, see CRS Issue Brief IB10117, Federal Research and Development Funding: FY2004. An additional $122 million is proposed for Community Health Centers, which was funded at $1.5 billion in FY2003; however, the $104 million Community Access Program, which provides the uninsured with safety-net access to health care, would be eliminated. CRS-17 ! ! ! ! ! ! ! ! A decrease of $312 million is requested for the Health Professions program, funded at $421 million in FY2003. The Health Care and Other Facilities program, funded at $295 million in FY2003, would be eliminated; funds for this program are earmarked for construction and renovation projects for designated recipients. A decrease of $255 million is requested for the Substance Abuse and Mental Health Services Administration (SAMHSA); $3.1 billion was provided for FY2003 for a variety of substance abuse and mental health activities. An increase of $169 million is requested for the Centers for Medicare and Medicaid Services (CMS) Program Management for the administration of the Medicare and Medicaid programs; $2.6 billion is the FY2003 amount. A increase of $311 million is proposed for the Low-Income Home Energy Assistance Program (LIHEAP); $1.7 billion is provided for FY2003. An additional $148 million is requested for Head Start, funded at $6.7 billion in FY2003. A decrease of $151 million is requested for the Community Services Block Grant, which is funded at $646 million in FY2003. An additional $101 million is requested for the discretionary portion of the Promoting Safe and Stable Families program; $99 million in discretionary funds is provided for FY2003. House Bill, as Passed. For HHS programs, the FY2004 House bill differs in several respects from the President’s budget request. ! ! ! ! ! ! ! Health Professions would be provided $282 million more than requested, but $30 million less than the FY2003 amount of $421 million. The Children’s Hospital Graduate Medical Education program would receive $106 million more than requested and $15 million more than the FY2003 amount of $290 million. The Community Access program would be maintained at $104 million; the request was for termination of funding. The CDC would receive $322 million more than the requested amount and $304 million more than the FY2003 amount of $4.3 billion. LIHEAP would receive $200 million less than the request but $111 million more than the FY2003 amount of $1.7 billion. Discretionary funding for Promoting Safe and Stable Families would receive $100 million less than requested but nearly the same as the FY2003 amount of $99 million. The Public Health and Social Services Emergency Fund (PHSSEF) would receive $119 million less than requested and $110 million less than the FY2003 amount of $1.9 billion. Senate Bill, as Reported. For HHS programs, the FY2004 Senate bill differs in several respects from the House bill. CRS-18 ! ! ! ! ! ! ! The $290 million Children’s Hospital Graduate Medical Education program would not receive a specific amount; instead, it would be funded as part of the Health Professions program, which would be increased by $3 million under the Senate bill. Funding for the $104 million Community Access Program would be eliminated under the Senate bill, the same as the President’s request; level funding would be provided by the House bill. The CDC would receive $157 million less than the House bill but $165 million more than requested; the Senate amount would be $147 million more than the FY2003 amount of $4.3 billion. The NIH would receive $319 million more than the House or the request, and $1.0 billion more than the FY2003 amount of $27.0 billion. SAMHSA would receive $171 million less than the House and $235 million less than requested; the Senate bill would provide an increase of $20 million over the FY2003 amount of $3.1 billion. LIHEAP would receive $200 million more than the House and the same as the amount requested; the Senate bill would provide $311 million more than the FY2003 amount of $1.7 billion. The Community Services Block Grant would receive $151 million more than the House or the request; the Senate bill would maintain funding at the FY2003 level of $646 million. Abortion: Funding Restrictions. L-HHS-ED appropriations acts regularly contain restrictions that limit — for one year at a time — the circumstances under which federal funds can be used to pay for abortions. The Congress has not actually amended these restrictions since FY1999, but given the perennial volatility of this issue, these provisions may be revisited at any time during consideration of L-HHSED appropriations. From FY1977 to FY1993, abortions could be funded only when the life of the mother was endangered. Restrictions on appropriated funds, popularly referred to as the Hyde Amendments, generally apply to all L-HHS-ED funds. Medicaid is the largest program affected. The 103rd Congress modified the provisions to permit federal funding of abortions in cases of rape or incest. The FY1998 L-HHS-ED Appropriations Act, P.L. 105-78, extended the Hyde provisions to prohibit the use of federal funds to buy managed care packages that include abortion coverage, except in the cases of rape, incest, or life endangerment. For FY1999, the FY1998 Hyde Amendments were continued, along with a clarification to ensure that the restrictions apply to all trust fund programs (namely, Medicare) funded by the FY1999 L-HHS-ED Appropriations Act, P.L. 105-277, as well as an assurance that Medicare + Choice plans cannot require the provision of abortion services. Annual appropriations acts since FY1999 have repeated without change the FY1999 funding restrictions. Current provisions can be found in §508 and §509 of the FY2003 L-HHS-ED Appropriations Act, P.L. 108-7. For additional information, see CRS Issue Brief IB95095, Abortion: Legislative Response. Embryonic Stem Cell Research: Funding Restrictions. On August 9, 2001, President Bush announced a decision to use federal funds for research on human embryonic stem cells for the first time, but limited the funding to “existing stem cell lines.” Although NIH developed a registry which listed 78 cell lines eligible for use in federally funded research, subsequently many of the lines were CRS-19 found to be unavailable or unsuitable for research. The NIH registry currently lists only 11 cell lines available for general research purposes. Embryonic stem cells have the ability to develop into virtually any cell in the body, and may have the potential to treat medical conditions such as diabetes and Parkinson’s disease. The use of stem cells, however, frequently raises difficult ethical and social issues regarding embryo and fetal tissue research. An FY1996 appropriations continuing resolution, P.L. 10499 (§128), prohibited NIH funds from being used for the creation of human embryos for research purposes or for research in which human embryos are destroyed. Since FY1997, annual appropriations acts extended the prohibition to all L-HHS-ED funds, but the NIH is the agency primarily affected. The restriction, originally introduced by Representative Jay Dickey, has not changed significantly since it was first enacted. However, given the potential volatility of this issue, it may also be revisited at any time during consideration of the L-HHS-ED appropriations. The current provision can be found in §510 of the FY2003 L-HHS-ED appropriations, P.L. 108-7. For additional information, see CRS Report RL31015, Stem Cell Research and CRS Report RL31358, Human Cloning. CRS Products CRS Issue Brief IB95095, Abortion: Legislative Response, by Karen J. Lewis, et. al. CRS Report 98-476, AIDS: Ryan White CARE Act, by Judith A. Johnson and Paulette C. Morgan. CRS Report RL30785, The Child Care and Development Block Grant: Background and Funding, by Alice Butler and Melinda Gish. CRS Report RS20124, Community Services Block Grants: Background and Funding, by Karen Spar and Garrine P. Laney. CRS Report RS21160, The Developmental Disabilities Act: Programs and Funding, by Sidath V. Panangala. CRS Issue Brief IB10117, Federal Research and Development Funding: FY2004, by Michael E. Davey. CRS Report RL30952, Head Start Issues in the 108th Congress, by Melinda Gish and Alice Butler. CRS Report RL31358, Human Cloning, by Judith A. Johnson. CRS Report RL31865, The Low-Income Home Energy Assistance Program (LIHEAP): Program and Funding Issues, by Emilie Stoltzfus. CRS Report 97-350, Maternal and Child Health Block Grant, by Sharon Kearney Coleman. CRS Report RL31058, Medicare Structural Reform: Background and Options, by Jennifer O’Sullivan, et. al. CRS Report RS20873, Reducing Teen Pregnancy: Adolescent Family Life and Abstinence Education Programs, by Carmen Solomon-Fears. CRS Report 94-953, Social Services Block Grant (Title XX of the Social Security Act), by Melinda Gish. CRS Report RL31015, Stem Cell Research, by Judith A. Johnson. CRS Report 97-1048, The Title X Family Planning Program, by Sharon Kearney Coleman. CRS Electronic Briefing Book, Welfare Reform, [http://www.congress.gov/brbk/html/ebwlf1.shtml]. CRS Issue Brief IB93034, Welfare Reform: An Issue Overview, by Vee Burke. CRS-20 World Wide Web Sites Department of Health and Human Services [http://www.hhs.gov] [http://www.hhs.gov/budget/] [http://www.hhs.gov/budget/document.htm] [http://www.hhs.gov/budget/docbudget.htm] Detailed Appropriations Table Table 8 shows the appropriations details for offices and major programs of HHS. CRS-21 Table 8. Detailed Department of Health and Human Services Appropriations ($ in millions) Office or major program Public Health Service (PHS) Health Resources and Services Administration (HRSA), Community Health Centers National Health Service Corps Health Professions Maternal and Child Health Block Grant Abstinence Education Ryan White AIDS Programs Family Planning (Title X) Children’s Hospital Graduate Medical Education Health Care and Other Facilities Community Access Program Vaccine Injury Compensation (mandatory) HRSA, other HRSA subtotal Centers for Disease Control and Prevention (CDC) c National Institutes of Health (NIH) d FY2003 enacted a FY2004 request FY2004 House FY2004 Senate 1,505 1,627 1,627 1,627 — 171 421 213 109 171 391 171 424 — — 730 751 7337 732 — 55 2,018 273 73 2,010 265 65 2,024 273 73 2,042 283 — — — 290 199 305 —b — 295 104 0 0 0 104 0 0 — — 86 66 66 66 — 575 6,523 425 5,738 566 6,325 536 5,954 — — 4,285 4,267 4,589 4,432 — 26,983 27,664 27,664 27,983 — 435 415 — 1,774 1,725 — 1,120 3,329 1,109 3,158 — — 3 0 — 304 41,907 304 41,527 — — 189,308 183,308 — 95,084 95,084 — 2,698 287,090 2,708 281,100 — — Substance Abuse and Mental Health Services Administration 437 433 (SAMHSA) Mental Health Block Grant SAMHSA Substance Abuse Block 1,692 1,785 Grant SAMHSA, other 1,009 1,175 SAMHSA subtotal 3,138 3,393 Agency for Healthcare Research 0 0 and Quality (AHRQ) AHRQ program level (non-add) 304 279 PHS subtotal 40,929 41,062 Centers for Medicare and Medicaid Services (CMS) Medicaid Grants to States 163,952 183,308 (mandatory) Payments to Medicare Trust Funds 81,463 95,084 (mandatory) CMS Program Management 2,656 2,734 CMS subtotal 247,980 281,126 FY2004 enacted CRS-22 Office or major program FY2003 enacted a FY2004 request FY2004 House FY2004 Senate Administration for Children and Families (ACF) Family Support Payments to States 4,036 4,625 4,625 4,672 (mandatory) Low Income Home Energy 1,689 2,000 1,800 2,000 Assistance Program (LIHEAP) Refugee and Entrant Assistance 478 462 462 428 Child Care and Development 2,086 2,100 2,100 2,100 Block Grant (CCDBG) Social Services Block Grant (Title 1,700 1,700 1,700 1,700 XX) (mandatory) Disabled Voter Services 15 0 15 0 Head Start 6,668 6,816 6,816 6,816 Child Welfare Services 290 292 292 290 Developmental Disabilities 145 140 146 151 Community Services Block Grant 646 495 495 646 Battered Women’s Shelters 126 124 126 126 Other Children and Family 755 820 725 751 Services Programs Promoting Safe and Stable 305 305 305 305 Families (PSSF) (mandatory) PSSF (discretionary) 99 200 100 99 Foster Care and Adoption 6,601 6,836 6,836 6,836 Assistance (mandatory) ACF subtotal 25,640 26,915 25,543 26,920 Administration on Aging (AOA) 1,367 1,344 1,377 1,360 Office of the Secretary, Public 1,887 1,896 1,777 1,856 Health and Social Service Fund Medical Benefits, Commissioned 310 303 330 330 Officers (mandatory) Office of the Secretary, Other 424 444 425 422 TOTALS, DEPARTMENT OF HEALTH AND HUMAN SERVICES Total appropriations e 318,536 353,090 359,449 353,515 Current year: FY2004 262,429 Advance year: FY2005 56,107 FY2004 enacted — — — — — — — — — — — — — — — — — — — — — 290,307 296,665 290,732 — 62,784 62,784 62,784 — Source: Amounts are based on the June 25, 2003 table of the House Committee on Appropriations, except for FY2004 Senate amounts which are based on the June 25, 2003 table of the Senate Committee on Appropriations. a The FY2003 amounts are post-reduction, and based on P.L. 108-7. Funding for the Children’s Hospital Graduate Medical Education is included in Health Professions. c The Veterans Affairs and Housing and Urban Development (VA-HUD) Appropriations Act provides additional funding for CDC — $83 million in FY2003. d The VA-HUD Appropriations Act provides additional funding for NIH — $84 million in FY2003. e Appropriations totals include discretionary and mandatory funds, and may be subject to additional scorekeeping and other adjustments. b CRS-23 Department of Education The FY2004 budget proposal for discretionary appropriations at the Department of Education (ED) is $53.2 billion, $0.1 billion (0.2%) more than the FY2003 appropriations of $53.1 billion, as shown in Table 9. The House bill, as reported, would provide $55.4 billion; as reported, the Senate bill would provide $54.6 billion. Table 9. Department of Education Discretionary Appropriations ($ in billions) Funding Appropriations FY2003 enacted FY2004 request FY2004 House FY2004 Senate FY2004 enacted $53.1 $53.2 $55.4 $54.6 — Source: Amounts are based on the June 25, 2003 table of the House Committee on Appropriations, except for FY2004 Senate amounts which are based on the June 25, 2003 table of the Senate Committee on Appropriations. FY2003 amounts are post-reduction and based on P.L. 108-7. Amounts shown represent discretionary programs funded by L-HHS-ED appropriations; appropriations for mandatory programs are excluded. A single mandatory ED program is included in the L-HHS-ED bill; the Vocational Rehabilitation State Grants program is funded at $2.5 billion in FY2003. Key Issues President’s Request. The amount of federal support for education has been a priority of both the Congress and the White House in recent years. Under the FY2004 budget request, funding for several programs would be increased. However, the total request for ED discretionary funds would be increased by 0.2%, and support for the Elementary and Secondary Education Act of 1965 (ESEA) would be $1.1 billion less than the FY2003 amount. Discretionary spending changes of at least $100 million are requested by the President for the following programs. ! ! ! ! An increase of $666 million is requested for the ESEA Title I Part A Grants to Local Educational Agencies (LEAs) program, which is funded at $11.7 billion in FY2003. An additional $655 million would be provided for Special Education Part B Grants to States program under Individuals with Disabilities Education Act (IDEA), funded at $8.9 billion in FY2003. An additional $1.4 billion is requested for the Pell Grant program, which is funded at $11.4 billion in FY2003. The FY2004 request includes an increase of $842 million to support a unified discretionary account for the administration of federal student aid programs, funded at $105 million in FY2003. This amount would be offset in part by a savings of $795 million through the consolidation of certain related expenses for student aid administrative activities currently counted elsewhere. CRS-24 Along with the increases proposed above, the President’s FY2004 budget would decrease or terminate funding for several programs. ! ! ! ! ! ! ! Impact Aid would be reduced by $172 million; the FY2003 amount is $1.2 billion. 21st Century Community Learning Centers would be decreased by $394 million; $994 million is provided in FY2003. Rural Education funding would be eliminated; the FY2003 amount is $168 million. The Fund for the Improvement of Education (FIE) would be reduced by $414 million; $473 million is provided in FY2003. The Perkins Vocational Education program would be reduced by $326 million; $1.3 billion is provided in FY2003. Smaller Learning Communities would be eliminated; $161 million is the FY2003 amount. The Fund for the Improvement of Postsecondary Education (FIPSE) would be decreased by $132 million; the program is funded at $171 million in FY2003. House Bill, as Passed. For ED programs, the FY2004 House bill differs in several respects from the President’s budget request. ! ! ! ! ! ! ! ! ! ! All ESEA programs in aggregate would be funded at $24.0 billion in FY2004 under the House bill, $1.5 billion more than requested and $447 million more than the FY2003 amount of $23.6 billion. Impact Aid would be funded at $1.2 billion, $222 million more than requested and $50 million more than the FY2003 amount. 21st Century Community Learning Centers would be funded at $1.0 billion, $400 million more than requested and slightly more than the FY2003 amount. Rural Education would be level funded at $170 million, about the same as the FY2003 amount; no funds are requested for FY2004. The FIE would receive $166 million, $107 million more than requested but $307 million less than the FY2003 amount. IDEA Part B Grants to States would receive $9.9 billion, $345 million more than requested and $1.0 billion more than the FY2003 amount. Perkins Vocational Education would be funded at $1.3 billion, $319 million more than requested but about the same as in FY2003. Smaller Learning Communities would be funded at $175 million; no funding is requested; the FY2003 amount is $161 million. Pell Grants would receive $12.3 billion, $465 million less than the request but $885 million more than the FY2003 amount of $11.4 billion. The House bill would reject the President’s request to consolidate student loan administrative activities. Senate Bill, as Reported. For ED programs, the FY2004 Senate bill differs in a number of respects with the House bill but by $100 million only for the aggregate amount of all ESEA programs. The Senate bill would provide $23.4 CRS-25 billion for all ESEA programs, $591 million less that the House amount, but $948 million more than requested; the FY2003 amount is $23.6 billion. Pell Grants. The funding level for Pell Grants has been a continuing issue. The program provides assistance to undergraduate students based on financial need. Aggregate program costs depend largely on the maximum award and the number of student recipients. The maximum award is currently set when appropriations are enacted, usually well before the start of the program year. The number of student awards, however, cannot be determined until the final award is claimed; this final accounting takes place after most decisions have been made on the following year’s appropriations. Funding shortfalls for Pell Grants are not new; the Senate Committee on Appropriations has stated that shortfalls have occurred in 6 of the past 12 years (S.Rept. 107-156, p. 75, May 29, 2002). Appropriations for Pell Grants make funds available for 2 full fiscal years to provide administrative flexibility regarding potential shortfalls and surpluses. Under this provision, a shortfall in one fiscal year can be reimbursed with funds obtained from the following fiscal year; similarly, a surplus can be carried forward and used in the following year. As of July 1, 2003, ED estimates the FY2003 shortfall will be $1.5 billion, to be reduced to $0.2 billion in FY2004 under the President’s budget request. For additional information, see CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act: Background and Reauthorization. Student Aid Program Administration. As it did in FY2003, the President’s FY2004 budget proposes the consolidation of the administration of federal student aid programs into a new unified discretionary account. If enacted, this account would combine the following: (1) administrative funds for the Direct Loan (DL) program that support loan origination, servicing, and collection; (2) account maintenance fees for the Federal Family Education Loan (FFEL) program guaranty agencies; (3) other funds that partially support administrative activities for the FFEL program; and (4) other ED personnel and operational funds related to student aid program administration. These funds are currently provided through a disparate set of mandatory, discretionary, and subsidy accounts. The proposal would switch the DL program administrative funds, which are currently mandatory appropriations, to discretionary appropriations. Similarly, account maintenance fees which partially support FFEL program guaranty agencies would cease to be mandatory appropriations and would become discretionary appropriations. Much of the financing of FFEL program administrative costs, however, would continue to be done through mandatory subsidy payments to lenders. The Higher Education Act (HEA) provisions that provide the underlying statutory authority for these funds would have to be changed to accommodate this proposal. The Congress did not act on the FY2003 proposal. For additional information on the cost, financing, and design of the FFEL and DL programs, see CRS Report RL30048, Federal Student Loans: Program Data and Default Statistics, and CRS Report RL30656, The Administration of Federal Student Loan Programs: Background and Provisions. IDEA Part B Grants to States. The IDEA is the major federal program providing assistance to states and school districts to help them fulfill their to provide a free appropriate public education to children with disabilities. In 1975, the Congress authorized state payments up to a maximum amount of 40% of the national average per-pupil expenditure (APPE) times the number of children with disabilities CRS-26 ages 3 and above that each state serves. The rationale for this formula was the assumption that the education of children with disabilities cost twice the national APPE — 100% more than the “average” child — and the maximum federal share of the extra cost would be 40%. Appropriations have never been sufficient to reach the 40% level. Some view this deficiency as a promise made that has not yet been kept. Achieving the 40% funding level for FY2003 for Part B grants would take an estimated $20.2 billion, whereas the FY2003 appropriation was $8.9 billion, the equivalent of 17.5% of the current APPE times the number of children served. An additional appropriation of $11.3 billion would have been necessary to provide the 40% authorized maximum for FY2003. In addition, funding requirements for maximum grants could grow in the future, as growth possibly continues for both the APPE and the number of children with disabilities served. The latter may increase in part as a result of medical advances that have enabled more medically fragile children to survive to school age and to receive a public education. For additional information, see CRS Report RS21447, Individuals with Disabilities Education Act (IDEA): Current Funding Trends. Forward Funding and Advance Appropriations. Many of the larger ED programs have either authorization or appropriations provisions that allow funding flexibility for school program years that differ from the federal fiscal year. For example, many of the elementary and secondary education formula grant programs receive appropriations that become available for obligation to the states on July 1 of the same year as the appropriations, and remain available through the end of the following fiscal year. That is, FY2003 appropriations for some programs became available for obligation to the states on July 1, 2003, and will remain available for a 15-month period until September 30, 2004. This budgetary procedure is popularly known as “forward” or “multi-year” funding, and is accomplished through funding provisions in the L-HHS-ED appropriations bill. Forward funding in the case of elementary and secondary education programs was designed to allow additional time for school officials to develop budgets in advance of the beginning of the school year. For Pell Grants for undergraduates, however, aggregate program costs for individual students applying for postsecondary educational assistance cannot be known with certainty ahead of time. Appropriations from one fiscal year primarily support Pell Grants during the following academic year, that is, the FY2003 appropriations will be used primarily to support the 20032004 academic year. Unlike forward funded programs, however, the funds for Pell Grants remain available for obligation for 2 full fiscal years. Thus, if cost estimates turn out to be too low, funds may be borrowed from the following year’s appropriations, or conversely, if the estimates are too high, the surplus may be obligated during the following year. An advance appropriation occurs when the appropriation is provided for a fiscal year beyond the fiscal year for which the appropriation was enacted. In the case of FY2003 appropriations, funds normally would have become available October 1, 2002, under regular funding provisions, but did not become available until July 1, 2003, under the forward funding provisions discussed above. However, if the July 1, 2003 forward funding date were to be postponed for obligation by 3 months — until October 1, 2003 — the appropriation would be classified as an advance appropriation since the funds would become available only in a subsequent fiscal CRS-27 year, FY2004. For example, the FY2003 appropriation for Title I Part A Grants to LEAs for the Education of the Disadvantaged is $11.7 billion. This amount includes not only forward funding of $2.9 billion (available July 1, 2003), but also an advance appropriation of $8.8 billion (available October 1, 2003). Like forward funding, advance appropriations are accomplished through provisions in the annual appropriations bill. What is the impact of these changes in funding provisions? At the program or service level, relatively little is changed by the 3-month delay in the availability of funds, since most expenditures for a standard school year occur after October 1. At the appropriations level, however, a significant technical difference occurs because forward funding is counted as part of the current fiscal year, and is therefore fully included in the current 302(b) allocation for discretionary appropriations. Under federal budget scorekeeping rules, an advance appropriation is not counted in the 302(b) allocation until the following year. In essence, a 3-month change from forward funding to an advance appropriation for a given program allows a one-time shift from the current year to the next year in the scoring of discretionary appropriations. For additional information on budget enforcement procedures, see CRS Report 98-720, Manual on the Federal Budget Process. CRS Products CRS Report RL31747, The Carl D. Perkins Vocational and Technical Education Act of 1998: background and Implementation, by Rebecca R. Skinner and Richard N. Apling. CRS Report RL31487, Education for the Disadvantaged: Overview of ESEA Title I-A Amendments Under the No Child Left Behind Act, by Wayne Riddle. CRS Report RL31315, Education of Limited English Proficient and Recent Immigrant Students: Provisions of the No Child Left Behind Act of 2001, by Jeffrey J. Kuenzi. CRS Report RL30448, Even Start Family Literacy Programs: Background and Reauthorization Issues, by Gail McCallion and Wayne Riddle. CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act: Background and Reauthorization, by James B. Stedman. CRS Report RL31128, Funding for Public Charter School Facilities: Federal Policy Under ESEA, by David P. Smole. CRS Issue Brief IB10097, The Higher Education Act: Reauthorization Status and Issues, by James B. Stedman. CRS Report RL31885, Impact Aid for Public K-12 Education: General Overview and Current Status, by Rebecca R. Skinner. CRS Report RS21447, Individuals with Disabilities Education Act (IDEA): Current Funding Trends, by Richard N. Apling. CRS Report RL30810, Individuals with Disabilities Education Act (IDEA): Issues Regarding “Full Funding” of Part B Grants to States, by Richard N. Apling. CRS Report RS20366, Individuals with Disabilities Education Act (IDEA): Overview of Major Provisions, by Richard Apling and Nancy Lee Jones. CRS Electronic Briefing Book, K-12 Education, [http://www.congress.gov/brbk/html/ebedd1.shtml]. CRS Report RL31284, K-12 Education: Highlights of the No Child Left Behind Act of 2001 (P.L. 107-110), by Wayne Riddle. CRS-28 CRS Report RL30834, K-12 Teacher Quality: Issues and Legislative Action, by James B. Stedman. CRS Report RL31241, Reading First and Early Reading First: Background and Funding, by Gail McCallion. CRS Report RL31647, Reauthorization of Title III and Title V of the Higher Education Act: Issues for the 108th Congress, by Charmaine Jackson. CRS Report RL31378, Rehabilitation Act: Programs and Funding, by Sidath V. Panangala. CRS Report RS20532, The Safe and Drug-Free Schools and Communities Act: Reauthorization and Appropriations, by Edith Fairman Cooper. CRS Issue Brief IB98035, School Choice: Current Legislation, by David P. Smole. CRS Report RL31240, 21st Century Community Learning Centers in P.L. 107-110: Background and Funding, by Gail McCallion. CRS Report RL31622, TRIO and GEAR UP Programs: Status and Issues, by Jeffrey J. Kuenzi. World Wide Web Sites Department of Education Home Page [http://www.ed.gov/index.jsp] [http://www.ed.gov/offices/OUS/budget.html] [http://www.ed.gov/offices/OUS/budnews.html] [http://www.ed.gov/offices/OUS/Budget04/index.html] [http://www.ed.gov/offices/OUS/Budget04/04testimony.html] [http://www.ed.gov/offices/OUS/Budget04/04summary/index.html] Detailed Appropriations Table Table 10 shows the appropriations details for offices and major programs of ED. CRS-29 Table 10. Detailed Department of Education Appropriations ($ in millions) Office or major program Total Elementary and Secondary Education Act (non-add) Title I Part A Education for the Disadvantaged, Grants to LEAs Even Start Reading First State Grants Education for the Disadvantaged, Other Impact Aid Teacher Quality State Grants Innovative Education Block Grant Educational Technology State Grants 21st Century Community Learning Centers State Assessments Rural Education School Improvement, Other Indian Education Charter School Grants Fund for the Improvement of Education (FIE) Innovation and Improvement, Other Safe and Drug-Free Schools State Grants Safe Schools and Citizenship, Other English Language Acquisition and Enhancement (Bilingual and Immigrant Education) IDEA Special Education, Part B, Grants to States IDEA Special Education, other Vocational Rehabilitation State Grants (mandatory) Rehabilitation Services, other Special Institutions for Persons With Disabilities Perkins Vocational Education Adult Education Smaller Learning Communities Vocational and Adult, Other FY2003 FY2004 enacted a request FY2004 House FY2004 Senate FY2004 enacted 23,600 22,508 24,047 23,456 — 11,684 12,350 12,350 12,350 — 248 994 175 1,050 250 1,050 175 1,000 — — 812 609 857 578 — 1,188 2,931 382 1,016 2,850 385 1,238 2,931 335 1,188 2,850 345 — — — 696 701 696 696 — 994 600 1,000 1,000 — 384 168 328 122 199 390 0 117 122 220 390 170 276 122 220 390 168 282 122 220 — — — — — 473 59 166 166 — 427 528 422 388 — 469 422 469 422 — 416 334 351 397 — 686 665 686 665 — 8,874 9,529 9,874 9,859 — 1,160 1,161 1,176 1,168 — 2,533 2,584 2,584 2,584 — 420 419 415 420 — 167 159 171 171 — 1,326 587 161 32 1,000 591 0 0 1,319 600 175 0 1,326 587 161 20 — — — — CRS-30 Office or major program FY2003 FY2004 enacted a request Federal Student Aid Pell Grants, maximum award (in 4,050 4,000 dollars, non-add) Pell Grants 11,365 12,715 Supplemental Educational 760 725 Opportunity Grants Federal Work-Study 1,004 1,011 Federal Perkins Loans, Capital 99 0 Contributions Federal Perkins Loans, Loan 67 68 Cancellations Leveraging Educational 67 0 Assistance Partnership (LEAP) Loan Forgiveness for Child Care 1 0 Federal Family Education Loans, 105 947 Administration Direct Loan Reclassification 0 -795 Proposal Office of Postsecondary Education (OPE) Aid for Institutional Development 472 470 Fund for the Improvement of 171 39 Postsecondary Education (FIPSE) Federal TRIO Programs 827 803 GEAR UP 293 285 Higher Education, other 330 307 Howard University 238 237 Institute of Education Sciences (IES) Research and Statistics 390 376 Multi-year Grants 58 0 Departmental Management Departmental Management 536 574 TOTALS, DEPARTMENT OF EDUCATION 55,808 Total Appropriations a, b 55,646 FY2004 House FY2004 Senate FY2004 enacted 4,050 4,050 — 12,250 12,177 — 760 760 — 1,004 1,004 — 99 99 — 67 67 — 67 67 — 0 0 — 120 105 — 0 0 — 484 488 — 39 32 — 835 300 328 243 840 300 314 238 — — — — 443 58 395 58 — — 574 545 — 57,964 57,190 — Current year: FY2004 38,391 40,797 42,953 42,179 — Advance year: FY2005 17,255 15,011 15,011 15,011 — Source: Amounts are based on the June 25, 2003 table of the House Committee on Appropriations, except for FY2004 Senate amounts which are based on the June 25, 2003 table of the Senate Committee on Appropriations. a The FY2003 amounts are post-reduction and based on P.L. 108-7. Appropriations totals include discretionary and mandatory funds, and may be subject to additional scorekeeping and other adjustments. b CRS-31 Related Agencies The FY2004 budget proposal for discretionary appropriations for L-HHS-ED Related Agencies is $9.9 billion, $0.3 billion (3.1%) more than the FY2003 appropriations of $9.6 billion, as shown in Table 11. The House bill, as reported, would provide $10.0 billion; as reported, the Senate bill would provide $10.3 billion. Table 11. Related Agencies Discretionary Appropriations ($ in billions) Funding Appropriations FY2003 enacted $9.6 FY2004 request FY2004 House FY2004 Senate FY2004 enacted $9.9 $10.0 $10.3 — Source: Amounts are based on the June 25, 2003 table from the House Committee on Appropriations, except for FY2004 Senate amounts which are based on the June 25, 2003 table of the Senate Committee on Appropriations. FY2003 amounts are post-reduction, and based on P.L. 108-7. Amounts shown represent discretionary programs funded by L-HHS-ED appropriations; appropriations for mandatory programs are excluded. Mandatory programs for related agencies included in the L-HHS-ED bill are funded at $32.2 billion in FY2003, virtually all of it for the Supplemental Security Income (SSI) program. Key Issues President’s Request. The President’s FY2004 budget for related agencies would change discretionary spending by at least $100 million for several programs. ! ! ! The Corporation for Public Broadcasting (CPB) has been provided with a 2-year advance appropriation in recent years, that is, the FY2004 L-HHS-ED bill would be expected to provide FY2006 funding for the CPB. Under the President’s FY2004 request, zero funding would be provided for FY2006. However, $390 million has already been enacted for FY2005 (as part of the FY2003 L-HHS-ED bill), and $380 million has been provided for FY2004 (enacted in the FY2002 bill). The current amount for FY2003 is $363 million, which was enacted in FY2001. The SSI discretionary appropriation would be increased by $218 million; $2.9 billion is provided for FY2003. An additional $427 million is proposed for the SSA Limitation on Administrative Expenses, which was funded at $4.9 billion in FY2003. House Bill, as Passed. For the related agencies included in the L-HHS-ED bill, the House bill differs from the President’s budget request for several programs. CRS-32 ! ! The CPB would be given an advance appropriation of $330 million for FY2006; the CPB would not receive FY2006 funding under the request. The SSA Limitation on Administrative Expenses would receive $5.3 billion, $107 million less than requested. Senate Bill, as Reported. For related agencies, the FY2004 Senate bill differs from the House bill by at least $100 million for one program. The SSA Limitation on Administrative Expenses would be $5.4 billion, the same as requested but $107 million more than the House amount. CRS Products CRS Report RL31320, Federal Aid to Libraries: The Library Services and Technology Act, by Gail McCallion. CRS Electronic Briefing Book, Social Security, at [http://www.congress.gov/brbk/html/ebssc1.shtml]. CRS Report 98-422, Social Security and the Federal Budget: What Does Social Security’s Being “Off Budget” Mean?, by David Stuart Koitz. CRS Issue Brief IB98048, Social Security Reform, by Geoffrey Kollmann and Dawn Nuschler. CRS Report 94-486, Supplemental Security Income (SSI): A Fact Sheet, by Jennifer E. Lake. CRS Report RS20419, VISTA and the Senior Volunteer Service Corps: Description and Funding Levels, by Ann Lordeman. World Wide Web Sites Note: Not all of the L-HHS-ED related agencies have web sites, and not all web sites include FY2004 budget information. Armed Forces Retirement Home [http://www.afrh.com] Corporation for National and Community Service [http://www.cns.gov] Corporation for Public Broadcasting [http://www.cpb.org] [http://www.cpb.org/about/funding/appropriation.html] Federal Mediation and Conciliation Service [http://www.fmcs.gov] Institute of Museum and Library Services [http://www.imls.gov] [http://www.imls.gov/whatsnew/current/020303.htm] CRS-33 Medicare Payment Advisory Commission [http://www.medpac.gov/] National Commission on Libraries and Information Science [http://www.nclis.gov/] National Council on Disability [http://www.ncd.gov/] National Labor Relations Board [http://www.nlrb.gov] Railroad Retirement Board [http://www.rrb.gov] [http://www.rrb.gov/BFO/Justbudgettoc04.htm] Social Security Administration [http://www.ssa.gov] [http://www.ssa.gov/budget/2004bud.html] United States Institute of Peace [http://www.usip.org] Detailed Appropriations Table Table 12 shows the appropriations details for offices and major programs of the L-HHS-ED related agencies. CRS-34 Table 12. Detailed Related Agencies Appropriations ($ in millions) Office or major program FY2003 enacted a Armed Services Retirement Home 67 FY2004 request FY2004 House 65 Corporation for National and Community Service (CNCS) FY2004 Senate FY2004 enacted 65 65 — b Volunteers in Service to America (VISTA) 94 94 94 94 — Special Volunteer Programs 10 20 5 5 — 216 212 216 217 — 34 38 38 34 — 354 364 353 350 — Corporation for Public Broadcasting (CPB), 2-Year Advance 390 0 330 400 — CPB current year (non-add) 363 380 380 380 — CPB Digitalization Program 48 0 0 55 — 0 0 0 10 — 41 43 43 43 — Federal Mine Safety and Health Review Committee 7 8 8 8 — Institute of Museum and Library Services (IMLS) c 244 242 238 244 — Medicare Payment Advisory Commission 9 9 9 9 — National Commission on Libraries and Information Science 1 1 1 1 — National Council on Disability 3 3 3 3 — 237 243 239 246 — National Mediation Board 11 11 11 11 — Occupational Safety and Health Review Commission 10 10 10 10 — 228 226 219 224 — 20 22 22 22 — 32,170 35,838 35,838 35,846 — SSA SSI, Discretionary 2,936 3,154 3,093 3,154 — SSA Limitation on Administrative Expenses 4,949 5,376 5,269 5,376 — 82 90 88 82 — 40,157 44,480 44,310 44,480 — National Senior Volunteer Corps Program Administration CNCS subtotal CPB Interconnection Federal Mediation and Conciliation Service National Labor Relations Board Railroad Retirement Board Social Security Administration (SSA) SSA Payments to Social Security Trust Fund (mandatory) SSA Supplemental Security Income (SSI) (mandatory) SSA Office of Inspector General SSA subtotal CRS-35 Office or major program FY2003 enacted a United States Institute for Peace FY2004 request FY2004 House FY2004 Senate FY2004 enacted 16 17 17 17 — Total appropriations d 41,825 45,722 45,857 46,178 — Current year: FY2004 30,355 33,132 32,937 33,188 — Advance year: FY2005 11,080 12,590 12,590 12,590 — Advance year: FY2006 390 0 330 400 — TOTALS, RELATED AGENCIES Source: Amounts are based on the June 25, 2003 table of the House Committee on Appropriations, except for FY2004 Senate amounts which are based on the June 25, 2003 table of the Senate Committee on Appropriations. a The FY2003 amounts are post-reduction and based on P.L. 108-7. L-HHS-ED funds are provided only for CNCS Domestic Volunteer Service Act programs. In addition, the Veterans Affairs-Housing and Urban Development (VA-HUD) Appropriations Act provides funds for CNCS AmeriCorps Grants and other programs under the National Community Service Act — $387 million in FY2003. c The IMLS amounts include both Library Services and Museum Services; both programs are funded through the L-HHS-ED bill beginning with FY2003. d Appropriations totals include discretionary and mandatory funds, and may be subject to additional scorekeeping and other adjustments. b CRS-36 Related Legislation Several proposals related to L-HHS-ED appropriations have been considered during the 1st Session of the 108th Congress, including: the FY2004 budget resolution; the FY2003 emergency wartime supplemental appropriations; and the Consolidated Appropriations Resolution, 2003, which was enacted following a series of FY2003 continuing resolutions. FY2004 Budget Resolution, H.Con.Res. 95/S.Con.Res. 23 The concurrent resolution on the budget sets forth the congressional budget for FY2004. The resolution proposes federal budget levels for FY2004 through FY2013; the maximum for total discretionary spending is specified within the context of the budget resolution. As agreed to in conference, the resolution sets an FY2004 limit of $784.5 billion in discretionary spending, compared to $840.6 billion enacted for FY2003, according to the conference report (H.Rept. 108-71, p. 42). Typically, budget resolutions also specify the budget reconciliation process for the modification of mandatory spending limits and tax cut legislation, and set spending targets for functional categories of the budget. Report language usually provides an outline of the funding assumptions made for selected programs that might be used to reach the spending targets. Actual FY2004 discretionary appropriations for specific departments, agencies, and programs, however, are determined only through the enactment of appropriations bills. H.Con.Res. 95 (H.Rept. 108-37) was passed by the House on March 21, 2003 (roll call no. 82, 215-212). S.Con.Res. 23 (without written report) was passed by the Senate on March 26, 2003 (roll call no. 108, 56-44), before being substituted as an amendment to H.Con.Res. 95. The conference report for H.Con.Res. 95, H.Rept. 108-71, was agreed to on April 11, 2003, by the House (roll call no. 141, 216-211) and by the Senate (roll call no. 34, 51-50). For additional information, see CRS Report RL31784, The Budget for Fiscal Year 2004. FY2003 Wartime Supplemental, P.L. 108-11 (H.R. 1559) Following the enactment into law on February 20, 2003, of final FY2003 omnibus appropriations, the Congress agreed to additional FY2003 appropriations to meet various special wartime needs. From the total of $79 billion enacted, $158 million was designated for L-HHS-ED programs, including $16 million for the CDC for the prevention and control of Severe Acute Respiratory Syndrome (SARS), $100 million for the CDC for general activities, and $42 million for compensation for injuries resulting from smallpox vaccinations, contingent on the enactment of legislation authorizing such activities. In addition, the law clarifies the language specifying certain FY2003 award recipients that were designated under P.L. 108-7. The House passed H.R. 1559 (H.Rept. 108-55) on April 3, 2003 (roll call no. 108, 414-12). The Senate amended and passed H.R. 1559 in lieu of S. 762 (S.Rept. 108-33, agreed to by the Senate April 3 by roll call no. 125, 93-0). The conference report, H.Rept. 108-76, was agreed to by the House and the Senate on April 12, and signed into law by the President on April 16, 2003, as P.L. 108-11, the Emergency CRS-37 Wartime Supplemental Appropriations Act, 2003. For additional information, see CRS Report RL31829, Supplemental Appropriations FY2003: Iraq Conflict, Afghanistan, Global War on Terrorism, and Homeland Security. FY2003 Omnibus Appropriations, P.L. 108-7 (H.J.Res. 2) Regular FY2003 funding for L-HHS-ED activities was enacted early in the 108th Congress, more than four months after the start of FY2003 on October 1, 2002. Division G of the omnibus provided funds for L-HHS-ED programs. Seven of the 13 regular FY2003 appropriations bills were combined into a single piece of legislation, H.J.Res. 2. The conference report on H.J.Res. 2, H.Rept. 108-10, was passed on February 13, 2003, by the House (roll call no. 32, 338-83) and by the Senate (roll call no. 34, 76-20). It was signed into law by the President on February 20, 2003, as P.L. 108-7, the Consolidated Appropriations Resolution, 2003. For information on the FY2003 L-HHS-ED appropriations, see CRS Report RL31303, Appropriations for FY2003: Labor, Health and Human Services, and Education. For a guide to the omnibus bill, see CRS Report RS21433, FY2003 Consolidated Appropriations Resolution: Reference Guide. FY2003 Reduction in Funds. P.L. 108-7, Division N, Title VI “Offsets,” includes Section 601 “Across-the-Board Rescissions” which required a reduction of 0.65% to most discretionary appropriations enacted elsewhere in the law, including some of the L-HHS-ED appropriations. However, the reduction did not apply to advance appropriations for FY2004 and to certain specified programs, such as Head Start. Although the exact percentage of the reduction was specified, the actual application and resulting funding levels were determined later by the Office of Management and Budget (OMB) and the individual agencies. The final FY2003 amounts, as approved by OMB, are incorporated into the FY2004 tables of the House and Senate Committees on Appropriations. As a result, the tables in the H.J.Res. 2 conference report, H.Rept. 108-10, show pre-reduction levels, whereas the FY2004 reports from the House and Senate Committees on Appropriations show postreduction funding levels. FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111) From October 1, 2002, through February 20, 2003, when P.L. 108-7 was signed into law, a series of eight continuing resolutions extended appropriations for FY2003 on a temporary basis for most ongoing L-HHS-ED programs, including the costs of direct loans and loan guarantees. These resolutions were necessary because the regular FY2003 L-HHS-ED appropriations were not yet enacted. Funding under the continuing resolution was provided at a rate of operations not to exceed the “current rate,” under FY2002 conditions and program authority. New initiatives were prohibited unless otherwise specifically authorized. For programs with high spendout rates that normally would occur early in the fiscal year, special restrictions prohibited spending levels that would impinge on final funding decisions. The FY2003 continuing resolutions were: P.L. 107-229 (H.J.Res. 111), as amended by P.L. 107-235, P.L. 107-240, P.L. 107-244, P.L. 107-294, P.L. 108-2, P.L. 108-4, and CRS-38 P.L. 108-5. For additional information, see CRS Report RL30343, Continuing Appropriations Acts: Brief Overview of Recent Practices. CRS-39 Appendix A: Terminology Note: Definitions are based on CRS Report 98-720, Manual on the Federal Budget Process. Advance appropriation is budget authority that will become available in a fiscal year beyond the fiscal year for which the appropriations act is enacted; scorekeeping counts the entire amount in the fiscal year it first becomes available for obligation. Appropriation is budget authority that permits federal agencies to incur obligations and to make payments out of the Treasury for specified purposes. Appropriations represent the amounts that agencies may obligate during the period of time specified in the law. Annual appropriations are provided in appropriations acts; most permanent appropriations are provided in substantive law. Major types of appropriations are regular, supplemental, and continuing. Budget authority is legal authority to incur financial obligations that normally result in the outlay of federal government funds. Major types of budget authority are appropriations, borrowing authority, and contract authority. Budget authority also includes the subsidy cost of direct and guaranteed loans, but excludes the portion of loans that is not subsidized. Budget resolution is a concurrent resolution passed by both Houses of Congress, but not requiring the signature of the President, setting forth the congressional budget for at least 5 fiscal years. It includes various budget totals and functional allocations. Discretionary spending is budget authority provided in annual appropriations acts, other than appropriated entitlements. Entitlement authority is the authority to make payments to persons, businesses, or governments that meet the eligibility criteria established by law; as such, it represents a legally binding obligation on the part of the federal government. Entitlement authority may be funded by either annual or permanent appropriations acts. Forward funding is budget authority that becomes available after the beginning of one fiscal year and remains available into the next fiscal year; the entire amount is counted or scored in the fiscal year it first becomes available. Mandatory (direct) spending includes: (a) budget authority provided in laws other than appropriations; (b) entitlement authority; and (c) the Food Stamp program. Rescission is the cancellation of budget authority previously enacted. Scorekeeping is a set of procedures for tracking and reporting on the status of congressional budgetary actions. Supplemental appropriation is budget authority provided in an appropriations act in addition to regular appropriations already provided. CRS-40 Appendix B: Scope of L-HHS-ED Appropriations The FY2003 budget authority for all federal programs was estimated to be $2,154.4 billion, as shown in Table B.1. Of this amount, the departments and related agencies funded by the L-HHS-ED bill accounted for $1,152.0 billion (53.5%). Table B.1. Scope of the L-HHS-ED Bill, FY2003 (Estimated budget authority in billions of dollars) Budget category Total federal budget authority Estimated budget authority Percent of federal budget $2,154.4 100.0% 71.3 3.3% 507.8 23.6% Department of Education 60.5 2.8% Social Security Administration (On-budget) 43.9 2.0% Social Security Administration (Off-budget) 466.8 21.7% 1.7 0.1% 1,152.0 53.5% L-HHS-ED bill, total current year funds 423.1 19.7% L-HHS-ED bill, current year mandatory funds 290.8 13.5% L-HHS-ED bill, current year discretionary funds 132.3 6.2% Total federal discretionary funds 749.0 34.8% Department of Labor Department of Health and Human Services Other related agencies L-HHS-ED agency total Source: Budget of the United States Government Historical Tables, Fiscal Year 2004, Tables 5.2 and 5.4; and the FY2003 conference report H.Rept. 108-10, which provides details for the FY2003 L-HHS-ED amounts under P.L. 108-7. Note: For comparability, this table uses data from the February 2003 OMB budget documents and the FY2003 conference report of February 13, 2003; the data therefore do not include changes in scorekeeping, entitlements, or FY2003 supplemental appropriations. As shown in Table 2 (page 3), the estimated FY2003 appropriations for L-HHSED was $423.1 billion in current year funds — $132.3 billion in discretionary funds and $290.8 billion in mandatory funds. The L-HHS-ED Appropriations Subcommittees generally have effective control only over the discretionary funds, which constitute 6.2% of the aggregate budget authority for all federal departments and agencies, and 11.6% of the total budget authority for L-HHS-ED departments and agencies.1 What accounts for the remaining 88.4% ($1,018.6 billion) of L-HHS-ED funds? 1 The annual congressional budget resolution sets aggregate budget goals; House and Senate committees initiate and report legislation to achieve these targets. Typically, appropriations committees develop proposals to meet discretionary targets through appropriations bills. Likewise, authorizing committees develop proposals to meet mandatory targets; these proposals are often reported by separate authorizing committees and combined into a single, omnibus reconciliation bill. CRS-41 First, some DOL, HHS, and ED programs receive automatic funding without congressional intervention in the annual appropriations process; these programs receive funds from permanent appropriations and trust funds instead. These programs account for most of the difference between the L-HHS-ED bill total of $424.1 billion and the agency estimated total of $1,152.0 billion in FY2003. The major programs in this group include Unemployment Compensation, Medicare, Railroad Retirement, Temporary Assistance for Needy Families (TANF, the welfare assistance program), Student Loans, State Children’s Health Insurance, and Social Security benefits.2 Second, mandatory programs account for the difference between the L-HHS-ED total of $424.1 billion and the subtotal of $133.4 billion for discretionary funds in FY2003. Although annual appropriations are made for these programs — these are sometimes called “appropriated entitlements” — in general the amounts provided must be sufficient to cover program obligations and entitlements to beneficiaries. For these programs, as well as the programs funded through trust funds and permanent authorities, most changes in funding levels are made through amendments to authorizing legislation rather than through annual appropriations bills. Federal administrative costs for these programs typically are subject to annual discretionary appropriations, however. For L-HHS-ED agencies, these programs include Supplemental Security Income, Black Lung Disability payments, Foster Care and Adoption, the Social Services Block Grant, and Vocational Rehabilitation, as well as general (non-earmarked) fund support for Medicare and Medicaid. Third, two HHS agencies are fully funded in other appropriations bills, and three L-HHS-ED programs were partially funded in FY2003 by bills other than L-HHS-ED. FY2003 appropriations from other, non-L-HHS-ED sources are shown for each of these agencies and programs. Prior to FY2003, the Office of Museum Services of the Institute of Museum and Library Services (IMLS) was funded through under the Interior Appropriations, but the entire IMLS has been funded under L-HHS-ED beginning in FY2003. ! ! ! 2 The HHS Food and Drug Administration is funded by the Agriculture Appropriations ($1.7 billion in FY2003). The HHS Indian Health Service is funded by the Interior Appropriations ($2.9 billion in FY2003). The Corporation for National and Community Service (CNCS) — which is funded under related agencies — receives funds from the L-HHS-ED bill for programs authorized under the Domestic Volunteer Service Act of 1973 ($354 million); it also receives funds from the FY2003 Veterans Affairs and Housing and Urban The Social Security Administration (SSA) was separated from HHS and established as an independent federal agency on March 31, 1995. Within the L-HHS-ED bill, however, the SSA merely was transferred from HHS to “related agency” status. The operation of the Social Security trust funds is considered off-budget. Of the estimated $1,152.0 billion total for L-HHS-ED departments and agencies in FY2003, the SSA accounted for $510.7 billion, or 44.3% of the total. As shown in Table B.1, the SSA amount represents $43.9 billion for designated on-budget activities and $466.8 billion for off-budget activities. CRS-42 ! ! Development (VA-HUD) Appropriations for AmeriCorps and other programs authorized by the National Community Service Act ($387 million). The Centers for Disease Control and Prevention (CDC) is primarily funded under L-HHS-ED ($4.3 billion in FY2003); it also receives funds under the FY2003 VA-HUD Appropriations for the Agency for Toxic Substances and Disease Registry (ATSDR) ($83 million). The National Institutes of Health (NIH) is primarily funded under L-HHS-ED ($27.0 billion in FY2003); it receives additional funds under FY2003 VA-HUD Appropriations for certain environmental health sciences activities ($84 million).