Federal Drug Control: President's Budget Request for Fiscal Year 1988

This report discusses the President's FY1988 budget, focusing on the $3 billion set aside for Federal programs to control or prevent the use of narcotics and other dangerous drugs. The report includes various key documents illustrating the positions taken by Congressional critics of the request as well as the Administration's defenses. Finally, for a longer term perspective, there are graphs and a table showing drug budget trends since FY 1981.

CRS REPORT FOR CONGRESS FEDERAL DRUG CONTROL: PRESIDENT'S BUDGET REQUEST FOR FISCAL YEAR 1988 Harry L. Hogan S p e c i a l i s t i n American N a t i o n a l Government with the a s s i s t a n c e of Roger Walke S e n i o r Research A s s i s t a n t Government D i v i s i o n June 1 , 1987 JUN 1 0 1988 T h e Congressional Research Service works exclusivelv for the Congress, conducting research, analyzing legislation, and providing information at the request of committees, Members. and their staffs. T h e Service makes such research available, without partisan bias, in many forms including studies, reports, compilations, digests, and background briefings. C'pon request, CRS assists committees in analyzing legislative proposals and issues, and in assessing the possible effects of these proposals and their alternatives. The Service's senior specialists and subject analysts are also available for personal consultations in their respective fields of expertise. ABSTRACT The P r e s i d e n t ' s b u d g e t f o r f i s c a l y e a r 1988 a s k s f o r a t o t a l of $ 3 b i l l i o n f o r F e d e r a l programs t o c o n t r o l o r p r e v e n t t h e u s e o f n a r c o t i c s a n d o t h e r dangerous drugs. The c o r e o f t h i s CRS r e p o r t i s a t a b l e c o m p a r i n g b u d g e t a u t h o r i t y ( B A ) r e q u e s t , by a g e n c y , w i t h a c t u a l BA f o r FY 1986 and e s t i m a t e d BA f o r FY 1987. Also i n c l u d e d a r e v a r i o u s key documents i l l u s t r a t i n g t h e p o s i t i o n s t a k e n by C o n g r e s s i o n a l c r i t i c s o f t h e r e q u e s t a s w e l l a s t h e Administration's defenses. F i n a l l y , f o r a l o n g e r term p e r s p e c t i v e , t h e r e a r e g r a p h s and a t a b l e showing d r u g budget t r e n d s s i n c e FY 1981. CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii FEDERAL DRUG CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . 1 HIGHLIGHTS OF THE FY88 REQUEST . . . . . . . . . . . . . . . . . . . . . 1 CONGRESSIONAL REACTION AND ADMINISTRATION RESPONSE . . . . . . . . . . . 3 ABSTRACT TABLE 1. Drug Abuse P r e v e n t i o n and C o n t r o l : Budget A u t h o r i t y f o r F e d e r a l Programs, FY 1986-FY 1988 ( M i l l i o n s of D o l l a r s ) . EIGHT YEAR SUMMARY ANDGRAPHS'. TABLE 2. CHART 1: CHART 2: ... 5 . . . . . . . . . . . . . . . . . . . . 13 Drug Abuse P r e v e n t i o n and C o n t r o l : Summary o f F e d e r a l Government Budget A u t h o r i t y Summary, FY1981-FY1988 ( F i g u r e s a r e i n m i l l i o n s of d o l l a r s ) . . . . . . . . . . 15 DRUG ABUSE PREVENTION 6 CONTROL, Budget A u t h o r i t y , FY81-88 (Current Dollars) . . . . . . . . . . . . . . . . . . . . 16 DRUG ABUSE PREVENTION 6 CONTROL, Budget A u t h o r i t y , FY81-88 (Constant Dollars) . . . . . . . . . . . . . . . . . . . 17 APPENDIX A: DRUG PROGRAMS EXCERPT FROM THE FY1988 BUDGET: ASSERTIONS VS. FACTS FISCAL YEAR 1988, U.S. E x e c u t i v e O f f i c e o f t h e P r e s i d e n t , O f f i c e of Management a n d B u d g e t , F e b r u a r y 1987 18 APPENDIX B: ANALYSIS OF THE ADMINISTRATION'S EXPLANATION OF ITS 1988 DRUG BUDGET REQUEST, S e l e c t Committee o n N a r c o t i c s Abuse and C o n t r o l , U. S. House o f R e p r e s e n t a t i v e s [March 19871 21 APPENDIX C: PREPARED STATEMENT OF JAMES C . MILLER 1 1 1 , DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, B e f o r e t h e S e l e c t C o m n i t t e e on N a r c o t i c s Abuse and C o n t r o l , U. S. House o f R e p r e s e n t a t i v e s , Washington, D.C., March 2 5 , 1 9 8 7 , With Accompanying Graphs 26 ...................... ....................... ................. PRESIDENT'S BUDGET REQUEST F O R FY 1988 FEDERAL DRUG CONTROL: HIGHLIGHTS OF THE FY88 REQUEST The f i s c a l y e a r 1988 budget s u b m i t t e d t o Congress on J a n u a r y 5 , 1 9 8 7 , a s k s f o r a t o t a l o f $3 b i l l i o n i n b u d g e t a u t h o r i t y f o r F e d e r a l programs and a c t i v i t i e s d e s i g n e d t o p r e v e n t o r c o n t r o l t h e u s e of n a r c o t i c s and o t h e r dangerous drugs. T h i s compares t o a n e s t i m a t e d $3.9 b i l l i o n t o b e o b l i g a t e d f o r t h e same p u r p o s e s i n f i s c a l y e a r 1987. The 1987 d r u g b u d g e t r e f l e c t s t h e i n c r e a s e s i n a p p r o p r i a t i o n s f o r t h a t y e a r a u t h o r i z e d by t h e Anti-Drug Abuse Act o f 1986 ( P . L . t o a t o t a l o f a p p r o x i m a t e l y $1.7 b i l l i o n . 99-570). These amounted T a b l e 1 ( b e l o w ) shows b u d g e t a u t h o r i t y ( R A ) r e q u e s t e d f o r FY 1988, b y a g e n c y , as compared w i t h a c t u a l BA f o r FY 1986 and e s t i m a t e d BA f o r FY 1987. a u t h o r i z e d b y t h e Anti-Drug I n t h e c a s e of FY 1 9 8 7 , i n c r e a s e d amounts Abuse Act a r e a l s o i n d i c a t e d , a s a r e t h e a p p r o p r i a t i o n s made p u r s u a n t t o t h e Act u n d e r a s e p a r a t e t i t l e o f a n omnibus a p p r o p r i a t i o n s s t a t u t e , P.L. 99-591. F u r t h e r , a s e p a r a t e column shows how t h e FY87 budget would be r e v i s e d b y t h e P r e s i d e n t ' s FY88 r e q u e s t s , t h r o u g h rescissions o r supple.nentals. S i n c e many o f t h e i n c r e a s e s a u t h o r i z e d b y t h e Anti-Drug marked f o r p r e s u m a b l y n o n - r e c u r r i n g Abuse Act w e r e expenditures, such a s a c q u i s i t i o n s o r c a p l t a l improvements, comparisons o f t h e 1987 budget and t h e proposed 1988 budget s h o u l d be made w i t h c a u t i o n . A v a l i d c o a p a r i s o n o f t h e 1987 b u d g e t and t h e 1988 r e q u e s t would r e q u i r e t h a t t h e former be l i m i t e d t o t h e " r e g u l a r " a p p r o p r i a t i o n s ( c o n t a i n e d i n T i t l e I of P.L. 99-591, t h e enacted r e s o l u t i o n f o r continuing a p p r o p r i a t i o n s f o r FY 1987) p l u s t h e amount a p p r o p r i a t e d p u r s u a n t t o t h e Anti-Drug Act ( u n d e r T i t l e I1 o f P.L. 99-591) t h a t was meant t o be r e c u r r i n g . Abuse However, b e c a u s e o f t h e u n u s u a l l e g i s l a t i v e h i s t o r y o f t h e Anti-Drug Abuse Act and o f t h e a p p r o p r i a t i o n s i t authorized, t h e r e i s u n c e r t a i n t y a s t o Congressional i n t e n t i n a number o f i n s t a n c e s . The p r i n c i p a l d e c r e a s e s and i n c r e a s e s proposed b y t h e FY 1988 budget a r e a s follows: -- G r a n t s f o r S t a t e and l o c a l d r u g l a w e n f o r c e m e n t , a d m i n i s t e r e d by t h e O f f i c e of J u s t i c e A s s i s t a n c e . The Anti-Drug Abuse Act a u t h o r i z e s $230 m i l l i o n f o r t h r e e y e a r s , b e g i n n i n g w i t h FY 1987; $225 m i l l i o n were a p p r o p r i a t e d f o r FY 1987. The r e q u e s t c o n t a i n s no p r o v i s i o n f o r c o n t i n u i n g t h e program i n FY 1988, n o t i n g t h a t a "one-time I n f u s i o n of funds w i l l provide s i g n i f i c a n t a s s i s t a n c e t o l o c a l drug enforcement e f f o r t s , s o s u c h g r a n t f u n d s w i l l no l o n g e r be needed i n 1988." 11 -- Drug-free S c h o o l s program, a d m i n i s t e r e d by t h e Department of E d u c a t i o n . The Anti-Drug Abuse Act a u t h o r i z e d a f o u r - y e a r program: $200 m i l l i o n f o r FY 1987 and $250 m i l l i o n f o r FY 1988 through FY 1990. The r e q u e s t a l l o t s t h e program $100 m i l l i o n f o r FY 1988, t h e r e d u c e d amount r e f l e c t i n g - - a c c o r d i n g t o t h e Budget, "one-time, s t a r t - u p c o s t s and i n c r e a s e d S t a t e and l o c a l p a r t i c i p a t i o n , " 11 -- C a p i t a l improvements. According t o t h e Budget, a p p r o x i m a t e l y $350 m i l l i o n of t h e FY 1987 budget were a p p l i e d t o " c a p i t a l p u r c h a s e s 1/ made i n 1987, which need n o t b e r e p e a t e d i n 1988." - -- Drug Enforcement A d m i n i s t r a t i o n (DEA). An i n c r e a s e of $ 4 2 n i l l i o n o v e r t h e e n a c t e d FY 1987 l e v e l o f $480 m i l l i o n ( p r o p o s e d t o b e r e v i s e d t o $490 m i l l i o n ) . -- P r i s o n s . An i n c r e a s e o f $42 m i l l i o n , o v e r t h e e n a c t e d l e v e l f o r ' 8 7 , f o r c o n s t r u c t i o n and o p e r a t i o n ($35 m i l l i o n o v e r t h e proposed r e v i s i o n ) ; and an i n c r e a s e o f $6 m i l l i o n f o r s u p p o r t of F e d e r a l p r i s o n e r s i n non-Federal i n s t i t u t i o n s ( $ 3 m i l l i o n o v e r t h e proposed r e v i s i o n ) . 11 U.S. E x e c u t i v e O f f i c e o f t h e P r e s i d e n t . O f f i c e o f Management and of t h e United S t a t e s Government, FY 1988. Washington, U.S. ~ u d ~ e t Budget . Govt. P r i n t . O f f . , 1987. P. 2-37. -- F o r e i g n a s s i s t a n c e f o r d r u g c o n t r o l ( S t a t e D e p a r t m e n t , Bureau o f I n t e r n a t i o n a l N a r c o t i c s M a t t e r s ) . A d e c r e a s e of $19 m i l l i o n from t h e e n a c t e d '87 l e v e l o f $118 m i l l i o n . -- Customs S e r v i c e . A d e c r e a s e of $128 m i l l i o n from t h e e n a c t e d l e v e l f o r FY87 ($553 m i l l i o n ) , $75 m i l l i o n from t h e proposed r e v i s e d l e v e l . The proposed r e v i s i o n f o r FY87 would e n t a i l a c u t o f $53 m i l l i o n . -- O t h e r law enforcement. I n c r e a s e s o f a p p r o x i m a t e l y $70 m i l l i o n f o r c e r t a i n o t h e r law enforcement a g e n c i e s , i n c l u d i n g $15 m i l l i o n f o r t h e FBI, $24 m i l l i o n f o r t h e U.S. M a r s h a l s , $28 m i l l i o n f o r t h e U.S. A t t o r n e y s , and $8 m i l l i o n f o r t h e I n t e r n a l Revenue S e r v i c e . -- A l c o h o l , Drug Abuse and Mental H e a l t h A d m i n i s t r a t i o n programs f o r t r e a t m e n t and p r e v e n t i o n . The a d d i t i o n a l amount a u t h o r i z e d b y t h e Anti-Drug Abuse Act--$262 m i l l i o n - - w h i l e i n c l u d e d i n t h e FY 1987 b a s e , i s two-year money. Thus, a l t h o u g h t h e r e q u e s t a p p e a r s t o r e d u c e t h e program b y t h a t amount, i n f a c t p e r h a p s a s much a s h a l f of t h e t o t a l w i l l be s p e n t i n FY 1988. -- I n d i a n h e a l t h s e r v i c e s . According t o t h e O f f i c e of Management and Budget, t h e o t h e r s i g n i f i c a n t r e d u c t i o n r e f l e c t e d i n t h e $900 m i l l i o n d i f f e r e n c e between FY 1987 and FY 1988 i s i n t h e a r e a o f h e a l t h s e r v i c e s f o r I n d i a n s : a p p r o x i m a t e l y $26 m i l l i o n i n FY 1988 a s compared t o $48 a i l l i o n i n FY 1987. CONGRESSIONAL REACTION AND ADMINISTRATION RESPONSE The c u t s c o n t e m p l a t e d b y t h e P r e s i d e n t ' s d r u g c o n t r o l budget f o r FY 1988 h a v e been c r i t i c i z e d on C a p i t o l H i l l a s i n c o n s i s t e n t w i t h s t a t e d A d m i n i s t r a t i o n p o l i c i e s on t h e i s s u e . Particularly controversial a r e the proposals t o eliminate t h e S t a t e and l o c a l law enforcement g r a n t program, t o r e d u c e t h e e d u c a t i o n g r a n t program, and t o s c a l e down t h e Customs S e r v i c e b u d g e t . The Chairman of t h e House S e l e c t Committee on N a r c o t i c s Abuse and C o n t r o l , R e p r e s e n t a t i v e C h a r l e s B. R a n g e l , t a k e s i s s u e w i t h t h e A d m i n i s t r a t i o n ' s v i e w of some p a r t s o f t h e Anti-Drug Abuse Act a s p r o v i d i n g "one t i m e s e e d money," a r g u i n g i n s t e a d t h a t t h e y a u t h o r f z e d a "down payment." 2/ 2/ U.S. House o f R e p r e s e n t a t i v e s . S e l e c t Committee on N a r c o t i c s Abuse and ~ G n t r o l . N a r c o t i c s Committee examines P r e s i d e n t ' s proposed b u d g e t c u t s i n f a c e o f d r a m a t i c i n c r e a s e i n drug p r o d u c t i o n . P r e s s r e l e a s e , March 25, 1987 (100.1-20). [See Appendix R : A n a l y s i s o f t h e A d m i n i s t r a t i o n ' s E x p l a n a t i o n o f i t s 1988 Drug Budget Request ( b y ) t h e S e l e c t Committee on N a r c o t i c s Abuse and C o n t r o l . (March, 1 9 8 7 ) l A d m i n i s t r a t i o n o f f i c i a l s respond t o c r i t i c i s m o f t h e r e q u e s t e d budget by p o i n t i n g t o t h e g e n e r a l r e c o r d o f i n c r e a s e s f o r d r u g c o n t r o l s i n c e 1980, and b y a r g u i n g t h a t t h e c u t s a r e proposed where f u r t h e r s p e n d i n g would be e i t h e r non-productive o r i n a p p r o p r i a t e . The D i r e c t o r o f t h e O f f i c e of Management and Budget, James C. M i l l e r T I I , r e c e n t l y t e s t i f i e d t h a t s i n c e FY 1981 r e s o u r c e s d e v o t e d t o a l l F e d e r a l a n t i - d r u g e f f o r t s have grown by 220 p e r c e n t i n nominal dollars. He p o i n t e d o u t t h a t i n t e r m s o f o u t l a y s , a s opposed t o budget a u t h o r i t y , t h e FY 1988 r e q u e s t p r o p o s e s a t o t a l i n c r e a s e o f a p p r o x i m a t e l y $500 m i l l i o n ( 5 3 . 5 b i l l i o n a s opposed t o $3 b i l l i o n i n FY 1987). Stating that the only i t e m he would "acknowledge a s a r e a l r e d u c t i o n " was t h e l a c k o f a r e q u e s t f o r f u r t h e r f u n d s f o r t h e S t a t e and l o c a l d r u g l a w enforcement g r a n t program a u t h o r i z e d b y t h e Anti-Drug Abuse A c t , " h e t e s t i f i e d : I n t h i s c a s e , we have an h o n e s t d i f f e r e n c e o f o p i n i o n w i t h some Members of Congress o v e r who o u g h t t o pay f o r l o c a l law e n f o r c e m e n t o p e r a t i o n s . It i s o u r view t h a t programs which p r i m a r i l y b e n e f i t a l o c a l community s h o u l d , i n most c a s e s , be p a i d f o r b y t h a t community. I would n o t e t h a t many o f t h e g r a n t programs funded i n t h e 1 9 7 0 ' s b y t h e Law Enforcement A s s i s t a n c e A d m i n i s t r a t i o n (LEAA) were phased o u t f o r t h i s v e r y r e a s o n . I n o u r v i e w , t h e r e a r e few d i f f e r e n c e s between t h e o l d LEAA g r a n t s and t h e n e w l y - a u t h o r i z e d S t a t e and l o c a l d r u g g r a n t s . I t s h o u l d a l s o b e n o t e d t h a t we n e v e r a s k e d f o r t h e s e f u n d s i n t h e f i r s t p l a c e . R a t h e r , i t was Congress t h a t added t h e program t o t h e d r u g b i l l d e s p i t e t h e A d m i n i s t r a t i o n ' s o b j e c t i o n s . We d o n ' t b e l i e v e i t was a good use o f F e d e r a l d o l l a r s t h e n and we d o n ' t b e l i e v e i t i s a good u s e o f d o l l a r s 3/ now. [See Appendix A: Drug programs. E x c e r p t from The FY 1988 b u d g e t : a s s e r t i o n s v s . f a c t s . A l s o , Appendix C: P r e p a r e d s t a t e m e n t of James C. M i l l e r . . . b e f o r e t h e S e l e c t Committee on N a r c o t i c s Abuse and C o n t r o l . ] U.S. 3 1 Testimony b e f o r e t h e S e l e c t Committee on N a r c o t i c s Abuse and C o n t r o l , House of R e p r e s e n t a t i v e s ; March 2 5 , 1987. Anti-Drug Abuse Act (P.L. 99-570) authorization increases T i t l e I 2-/ - Total 99-591 T i t l e I1 3-/ A p p r o p r i a t i o n s , P.L. PP 1987 Proposed i n President's FY 1988 Budget Drug Abuse P r e v e n t i o n and C o n t r o l : Budget A u t h o r i t y f o r F e d e r a l Programs, FY 1986-FY 1988 ( M i l l i o n s of D o l l a r s * ) *All f i g u r e s rounded e x c e p t f o r t h o s e under $ 2 m i l l i o n . Department of Justice DEA FBI Criminal Division Tax D i v i s i o n U.S. A t t o r n e y s U.S. Marshals Prisons Support of 51 Prisoners INS OJP INTERPOL P r e s . Corn. on Org. Crime FY 1986 TABLE 1. President's FY 1988 Budget FY 1988 Department of State INM AID (Direct) US1A Department of Transport a t i o n Coast Guard FAA F e d e r a l Highway Department of t h e Treasury Customs IRS ATF Payments t o P u e r t o Rico Secret Service 24 1 55 0.6 0 40 1 0 0 380 64 8 Ant i-Drug Abuse Act (P.L. 99-570) authorization increases LAW ENFORCEMENT--Continued Total 31 T i t l e I 21 T i t l e I1 11 99-591 - A p p r o p r i a t i o n s , P.L. Proposed i n President's FY 1988 Budget TABLE 1. Drug Abuse P r e v e n t i o n and C o n t r o l : Budget A u t h o r i t y f o r F e d e r a l Programs, FY 1986-FY 1988--Continued ( M i l l i o n s of D o l l a r s * ) President's FY 1988 Budget 1.6 Food and Drug Administration 15 1 1 0.2 Department of the Interior Bureau of Land Management Park Service Bureau of I n d i a n Affairs F i s h and Wildlife Department of Agriculture Ag. Research Service U.S. F o r e s t Service Ant i-Drug Abuse Act (P.L. 99-570) authorization increases - - T i t l e I1 3-1 Total 99-591 11 LAW ENFORCEMENT--Continued - - T i t l e I 2-1 A p p r o p r i a t i o n s , P.L. Proposed i n President's FY 1988 Budget TABLE 1. Drug Abuse P r e v e n t i o n and C o n t r o l : Budget A u t h o r i t y f o r F e d e r a l Programs, FY 1986-FY 1988--Continued (Millions of Dollars*) President 's FY 1988 Budget Subtotal, Drug Law Enforcement Judiciary 11/ ~alariesand expenses Defender Services Jurors/ Commissioners Fees Department of Defense lo/ ~irect Operating costs Other appropriations Ant i-Drug Abuse Act (P.L. 99-570) authorization increases Title 11 3/ - LAW ENFORCEMENT--Continued Title I 2/ Total 1/ Appropriations, P .L. 99-591 Proposed in President's FY 1988 Budget TABLE 1. Drug Abuse Prevention and Control: Budget Authority for Federal Programs, FY 1986-FY 1988--Continued (Millions of Dollars*) President' s FY 1988 Budget 0 - 0 10 0.1 3 63 88 S u b t o t a l , Drug Abuse P r e v e n t i o n 165 ~ e ~ a r t m of z t Defense Department of Education Department of Labor Bureau of I n d i a n Affairs Action White House Conference ADAMHA 12/ Anti-Drug Abuse Act (P.L. 99-570) authorization increases Total 11 99-591 - T i t l e T I 31 - DJMAND REDUCTION 21 Title I - A p p r o p r i a t i o n s , P.L. Proposed i n President's FY 1988 Budget TABLE 1. Drug Abuse P r e v e n t i o n and C o n t r o l : Budget A u t h o r i t y f o r F e d e r a l Programs, FY 1986-FY 1988--Continued ( M i l l i o n s of D o l l a r s * ) President's FY 1988 Budget Sources: 3 Title 11 3/ - Total Proposed in President's FY 1988 Budget President's FY 1988 Budget National and International Drug Law Enforcement Strategy. DEMAND REDUCTION--Continued Title I Appropriations, P.L. 99-591 11 (1) National Drug Enforcement Policy Board. January 1987. Appendix B, pp. 181-188. (2) Office of Management and Budget. (3) P.L. 99-570 and P.L. 99-591. (4) Agency budget analysts. TOTAL, FEDERAL DRUG CONTROL Subtotal, Drug Abuse Treatment Department of HHS ADAMHA 121 Indian Health Service Department of Defense Bureau of Indian A£fairs Veterans Administration Anti-Drug Abuse Act (P.L. 99-570) authorization increases TABLE 1. Drug Abuse Prevention and Control: Budget Authority for Federal Programs, FY 1986-FY 1988--Continued (Millions of Dollars*) INDEX OF ABBREVIATIONS ADAMHA-Alcohol, Drug Abuse, and Mental Health Administration ADMS-Alcohol, Drug Abuse, and Mental Health block grant AID-Agency for International Development BATF-Bureau of Alcohol, Tobacco, and Firearms BOP-Bureau of Prisons Crim Div-Criminal Division, Dept of Justice Customs-US Customs Service DEA-Drug Enforcement Administration Dept of Ed-Department of Education DOD-Department of Defense DOJ-Department of Justice DOL-Department of Labor FAA-Federal Aviation Administration FBI-Federal Bureau of Investigation FDA-Food and Drug Admini stration HHS-Department of Health and Human Services INM-International Narcotics Matters INS-Immigration and Naturalization Service IRS-Internal Revenue Service NIAAA-National Institute on Alcohol Abuse and Alcoholism NIDA-National Institute on Drug Abuse OJP-Office of Justice Program Pres. Com. on Org. Crime-President's Commission on Organized Crime Tax Div-Tax Division, Department of Justice US At t y-US Attorneys USCG-US Coast Guard USDA-US Department of Agriculture US Forest Svc-US Forest Service US Marshal-US Marshals Service VA-Veterans Administration R e s o l u t i o n f o r c o n t i n u i n g a p p r o p r i a t i o n s , FY 1987. s u p e r s e d e d P .L. 99-500. P.L. 99-591 */ - Base a p p r o p r i a t i o n s f o r o n g o i n g programs. I n t h e c a s e o f m u l t i f u n c t i o n a g e n c i e s , amounts shown a r e e s t i m a t e s made -- by e a c h a g e n c y of t h e p o r t i o n of t h e a g e n c y ' s t o t a l budget a u t h o r i t y t h a t i s ( o r w i l l b e ) a l l o c a t e d t o drug control a c t i v i t i e s . -- 3-1 Added a p p r o p r i a t i o n s p u r s u a n t t o Ant i-Drug Abuse Act o f 1987 (P.L. 99-570). 4-1 $97 m i l l i o n f o r c o n s t r u c t i o n ; $28 m i l l i o n f o r o p e r a t i o n . 5-1 S p e c i f i c a l l y , s u p p o r t of F e d e r a l p r i s o n e r s i n non-Federal institutions. 6_/ $230 m i l l i o n of t h e i n c r e a s e was earmarked f o r g r a n t s f o r S t a t e a n d l o c a l d r u g l a w e n f o r c e m e n t ; $5 m i l l i o n , f o r a p i l o t p r i s o n e r c a p a c i t y program. 7 / $81 m i l l i o n f o r s a l a r i e s and e x p e n s e s ; $94 m i l l i o n f o r t h e A i r I n t e r d i c t i o n Program; $10 m i l l i o n i n c r e a s e i n t h e Customs F o r f e i t u r e Fund. 8 / $44 m i l l i o n f o r s a l a r i e s and e x p e n s e s ; $93 m i l l i o n f o r t h e A i r I n t e r z i c t i o n Program; $10 m i l l i o n i n c r e a s e i n t h e Customs F o r f e i t u r e Fund. 9_/ $39 m i l l i o n f o r o p e r a t i n g e x p e n s e s ; $89 m i l l i o n f o r a c q u i s i t i o n , c o n s t r u c t i o n , and improvement. lo/ The b u d g e t sumnary i n c l u d e d i n t h e s t r a t e g y r e p o r t r e c e n t l y i s s u e d by t h e ~ a t i o n a lDrug Enforcement P o l i c y Board ( s e e " ~ o u r c e s," below) i s f o o t n o t e d a s follows: Numbers r e f l e c t t h e d i r e c t e x p e n s e s i n c u r r e d by DOD i n p r o v i d i n g a s s i s t a n c e t o d r u g law e n f o r c e m e n t a s a byp r o d u c t o f i t s t r a i n i n g and r e a d i n e s s m i s s i o n s , p l u s a p p r o p r i a t i o n s d i r e c t l y f o r d r u g law e n f o r c e m e n t m i s s i o n s i n t h e f o l l o w i n g amounts: 1986--$38M; 1987--$314M. V a l u e o f o t h e r DOD a i r c r a f t and o t h e r m a j o r equipment p r o v i d e d , l o a n e d , o r p r o c u r e d f o r d r u g law e n f o r c e m e n t , i n a d d i t i o n t o amounts l i s t e d a b o v e , e q u a l s $138.65 m i l l i o n , i n 1986 d o l l a r s . S i n c e 1985 DOD h a s computed d i r e c t and a l l o c a t e d ( i n d i r e c t ) c o s t s f o r t h e equivalent value of s e r v i c e s f o r DOD s u p p o r t t o d r u g law e n f o r c e m e n t , D i r e c t c o s t s i n c l u d e o p e r a t i o n and m a i n t e n a n c e c o s t s o f m i l i t a r y equipment s u p p o r t . A l l o c a t e d c o s t s i n c l u d e l i f e c y c l e c o s t s o f e q u i p m e n t , a m o r t i z a t i o n , c a p i t a l i z a t i o n , and o t h e r o v e r h e a d . DOD rough o r d e r of m a g n i t u d e e s t i m a t e s f o r a l l o c a t e d c o s t s t o t a l $82.7 m i l l i o n i n 1985 a n d $126.3 m i l l i o n i n 1986, DOD s u p p o r t s e r v i c e s f o r d r u g law e n f o r c e m e n t a r e p r o v i d e d " i n c i d e n t a l t o m i l i t a r y Nearly a l l of t h i s c o s t h a s t r a i n i n g and o p e r a t i o n s . " been waived from reimbursement u n d e r t h e Economy Act s i n c e DOD d e r i v e s " s u b s t a n t i a l l y e q u i v a l e n t t r a i n i n g . " DOD 1986 c o s t s a r e e s t i m a t e d from computed a c t u a l c o s t s of $52.3 m i l l i o n f o r t h e f i r s t t h r e e q u a r t e r s o f 1986. 11/ E s t i m a t e s of t h e amount o f t h e J u d i c i a r y ranch's b a s e budget t h a t i s s p e n t o n t h e p r o c e s s i n g of drug law o f f e n d e r s a r e u n a v a i l a b l e . 12/ A l c o h o l , Drug Abuse, and Mental H e a l t h Admini s t r a t i o n (Department 0f ~ e a l t h a n dHuman S e r v i c e s ) . A 1 1 o f t h e r e s e a r c h program o f t h e N a t i o n a l I n s t i t u t e on Drug Abuse i s i n c l u d e d under t h e p r e v e n t i o n c a t e g o r y . A l l of the Of f u n d s a p p r o p r i a t e d ADMS b l o c k g r a n t f u n d s a r e i n c l u d e d under "Treatment." i n 1987, $252 m i l l i o n i s a v a i l a b l e f o r o b l i g a t i o n t h r o u g h FY 88. 13/ The t o t a l a d d i t i o n a l amount a u t h o r i z e d f o r ADAMHA a c t i v i t i e s r e l a t e d t o b o t h d r u g and a l c o h o l a b u s e was $241 m i l l i o n , w i t h t h e f o l l o w i n g a l l o c a t i o n specified: .... A d d i t i o n t o ADMS b l o c k g r a n t . . . . . . 6.0% Special allotment f o r treatment and rehabilitation.................70.5% T r a n s f e r t o V e t e r a n s Administration...4.5% E v a l u a t i o n of t r e a t m e n t programs......l.O% O f f i c e of S u b s t a n c e Abuse P r e v e n t i o n and h i g h - r i s k ( p o p u l a t i o n ) demonstration p r o j e c t s 18.0% ............. S i n c e t h e r e i s no s p e c i f i c a t i o n of t h e d i s t r i b u t i o n of t h e b l o c k g r a n t i n c r e a s e ( i . e . , whether f o r p r e v e n t i o n o r t r e a t m e n t ) , and s i n c e t h e O f f i c e o f S u b s t a n c e Abuse i s a l s o concerned w i t h a l c o h o l a b u s e , t h e ADAMHA a u t h o r i z a t i o n i s n o t i n d i c a t e d i n t h e t a b l e , which s e p a r a t e s t h e p r e v e n t i o n and t r e a t m e n t f u n c t i o n s . The t o t a l a u t h o r i z a t i o n i n c r e a s e f o r ADAMHA--for b o t h f u n c t i o n s - was $241 m i l l i o n ; t h e a p p r o p r i a t i o n was $262 m i l l i o n , which i n c l u d e d $30 m i l l i o n f o r t h e r e s e a r c h programs of t h e N a t i o n a l I n s t i t u t e on Drug Abuse (NIDA) and t h e N a t i o n a l I n s t i t u t e on Alcohol Abuse and A l c o h o l i s m ($27 m i l l i o n f o r NIDA), and $1 m i l l i o n f o r a s t u d y of t h e a p p r o a c h of p r i v a t e h e a l t h i n s u r e r s t o c o s t s incurred f o r t h e treatment of drug abuse. - 14/ A u t h o r i z a t i o n i s f d r p r e v e n t i o n ( o r t r e a t m e n t ) of s u b s t a n c e a b u s e i n general. 15/ T r a n s f e r r e d from ADAMHA a s r e q u i r e d by P.L. o b l i g a t i o n t h r o u g h FY 88. *All 99-570; f i g u r e s rounded e x c e p t f o r t h o s e under $2 m i l l i o n . available for EIGHT YEAR SUMMARY AND GRAPHS TABLE 2 . Chart 1 . Drug Abuse Prevention and Control: Federal Government Budget A u t h o r i t y Summary, FY1981-FY1988 Drug Abuse P r e v e n t i o n and Control: Federal Government Budget A u t h o r i t y , FY1981-FY1988 (Current D o l l a r s ) Chart 2 . Drug Abuse Prevention and Control: Federal Government Budget A u t h o r i t y , FY1981-FYI988 (Constant D o l l a r s ) NOTES: 110.94 $1,620.2 $1,460.5 $226.4 $121.1 $347.5 $313.2 $1,272.8 $1,147.3 FY1983 115.08 $1,962.6 $1,705.4 $230.8 $135.8 $366.6 $318.5 $1,596.0 $1,386.8 FY1984 119.40 $2,233.3 $1,870.4 $235.2 $159'.7 $394.9 $330.7 $1,838.4 $1,539.7 FY1985 122.40 $2,269.6 $1,854.3 $227.3 $164.5 $391.8 $320.1 $1,877.8 $1,534.2 FY1986 126.16" $3,964.1 $3,142.0 $454.5 $505.4 $959.9 $760.8 $3,004.2 $2,381.2 * z/ L/ 126.16" $3,931.2 $3,116.0 $454.5 $505.4 $959.9 $760.8 130.79" $3,033-2 $2,319.1 $243.7 $321.4 $565.1 $432.1 $2,468.1 $1,887.0 Revised Requested 21 21 F Y L ~ ~ ~FEY ~ F $2,971.3 $2,355.1 Based on a t a b l e prepared by t h e O f f i c e of Management and Budget, included a s "Appendix B" in: U.S. National Drug Enforcement P o l i c y Board. National and I n t e r n a t i o n a l Drug Law Enforcement S t r a t e g y . Washington, U.S. Government P r i n t i n g O f f i c e , J a n u a r y 1987. Pp. 181-188. (Supplemented by d a t a provided by OMB.) 21 P r e s i d e n t ' s FYI988 Budget. D e f l a t o r f o r t o t a l non-defense o u t l a y s of t h e F e d e r a l Government a s computed by t h e O f f i c e of Management and Budget (OMB). OMB p r o j e c t i o n s . 106.62 $1,384.5 $1,298.5 TOTAL, FEDERAL DRUG SUMMARY $1,230.7 (Current $) (Constant 1981 $) $1,230.7 100.00 $200.2 $237.3 OMB I m p l i c i t P r i c e D e f l a t o r 31 - (1981=100) $104.9 $305.1 $286.2 $1,079.4 $1,012.4 FYI982 $133.9 $371.2 $371.2 Drug Demand Reduction (Current $) (Constant 1981 $) Drug Abuse Prevention (Current $) Drug Abuse Treatment (Current $) $859.5 $859.5 FYI981 Enacted FY1987E Drug Abuse P r e v e n t i o n and Control: F e d e r a l Government Budget Authority Summary, FY1981-FYI988 ( F i g u r e s a r e i n m i l l i o n s of d o l l a r s ) 1/ Drug Law Enforcement (Current $) (Constant 1981 $) TABLE 2. ~~E Source of beslc date: Office of Menagement and Budget Law enforcement Demand reduction Billions of dollars Budget Authority, FY81-88 (Current Dollars) Estimate Chart 1: Drug Abuse Prevention & Control Source of ba8ic dare. Office of Management and Budget Law enforcement Demand reduction Billions of dctllars Budget Authority, FY81-88 (Constant 1981 Dollars) * Estimate Chart 2: Drug Abuse Prevention & Control APPENDIX A: DRUG PROGRAMS EXCERPT FROM THE FY1988 BURGET: ASSERTIONS VS. FACTS FISCAL YEAR 1988 U.S. Executive O f f i c e of t h e President O f f i c e o f Management and Budget February 1987 DRUG PROGRAMS Assertion: The President has proposed cutting funds for anti-drug programs. Funding Summary ( I n millions of dollars) Budget Authority Outlays Facts: The President is dedicated to fighting for a DrugFree America. From the beginning of this Administration, the First Lady has served as a champion for this cause. Thanks to this strong support, resources for drug law enforcement have t r i ~ l e dbetween 1981 and 1988, while funding for prebention and treatment has increased by 52 percent. In just two years, from 1986 to 1988, overall drug spending has increased by 34 percent. Compared with 1987, the 1988 Budget requests funding for over 1,000 new drug investigators, prosecutors, and associated support staff, and will add approximately 800 new bed spaces to the Federal Prison System for drug violators. Although much has been made of an apparent decline in druq fundinq in the President's 1988 Budget, in fact, total s endin as measured in outla s actual1 i n e r e a s e ~ 8 ~ t o , tha years o d a l l e d cuts. Outlays for1:t:8 will be $3,456 million, as compared to $3,020 million in 1987 and $2,152 million in 1986. The appearance o f a fundin reduction is created when one looks only r u t understandin Let us look at thzse --+ + 0 Over $350 million provided by Congress in 1987 will purchase capital items, such as aircraft and the construction o f intelligence centers, that simply do not need to be repeated year after year. Hence, this money is not requested in 1988. 0 The Budget proposes termination of a $225 million drug enforcement grant program to State and local governments. This one-time infusion of 1987 funds can assist the governments in starting programs and making initial purchases, but it need not become an on-going supply line. Congress added the grant program to the 1986 Anti-Drug Abuse Act over the objections of the Administration, which felt at t h e time that the activities envisioned by the grant were properly the responsibility of State and Local governments to fund. Partially offsetting the need for this grant program, the Federal Government c ~ n t i n u e sto share the proceeds generated by the asset forfeiture program, which in 1986 distributed $24 million to State and local police departments and is expected to award $28 million more to these agencies in 1987. o Over $250 nillion of the HHS 1987 appropriation for drug abuse prevention and treatment will be spent over two years (1987 and 19881, but the entire amount is "scored" in 1987. Thus, the 1987-1988 decline is overstated by almost $130 million. o Finally, the Department of Education grant program, fznded at $ 2 Q Q million in 1987, will be reduced to a level of $100 million in 1988. A higher level is needed in the first year for start-up activities, such as planning expenses and materials, and these initial expenses need not be repeated. ++ To summarize, actual government outlays for drug ear o f t h i s ro rams are increasing in ever t b r m o n . To s u g g G t t at t e ~ f T s m has abandoned his commitment to combatting drug abuse is an assertion that simply ignores the facts. APPENDIX B: ANALYSIS OF THE ADMINISTRATION'S OF ITS 1988 DRUG BUDGET REQUEST EXPLANATION Select Committee on Narcotics Abuse and Control U. S. House of Representatives [March 19871 SELECT COMMITTEE ON NARCOTICS ABUSE AND CONTROL Analysis of t h e ~ d m i n i s t r a t i o n ' sExplanation of i t s 1988 Drug Budget Request Funding Trends r a t i o n Po- . . * Resources f o r drug law enforcement have t r i p l e d between 1981 and 1988, while funding f o r prevention and t r e a t m e n t has increased by 52 p e r c e n t . Comment According t o a 1985 GAO r e p o r t prepared f o r t h e S e l e c t Committee, Federal expenditures f o r drug law enforcement ' from 1981 through 1985 increased about 51 p e r c e n t a f t e r i n f l a t i o n . Most of t h i s i n c r e a s e was due t o i n t e r n a l reprogramming of resources by drug enforcement agencies such a s Customs and Coast Guard. Some new funds were a p p r o p r i a t e d f o r drug enforcement. The major i n i t i a t i v e was t h e Organized Crime Drug Enforcement (OCDE) program which t h e Administration proposed i n 1982 and Congress supported. Other new spending, e.g. f o r Customs a i r and marine i n t e r d i c t i o n e f f o r t s , was added by Congress w i t h no r e q u e s t from t h e Administration. During t h i s period Congress a l s o r e p e a t e d l y r e j e c t e d Administration r e q u e s t s t o s u b s t a n t i a l l y reduce Customs personnel, i n c l u d i n g i n s p e c t o r s . While t h e r e c l e a r l y have been s i g n i f i c a n t i n c r e a s e s f o r drug law enforcement, t h e Administration o v e r s t a t e s t h e s e i n c r e a s e s . Moreover, t h e most s i g n i f i c a n t s i n g l e i n c r e a s e came a s a r e s u l t of t h e Congress's i n i t i a t i v e i n passing t h e omnibus drug b i l l l a s t year. I n t h e a r e a of treatment and p r e v e n t i o n , t h e GAO r e p o r t noted above found t h a t from 1981 through 1985 Federal spending f o r t h e s e programs d e c l i n e d 1 6 p e r c e n t , an e f f e c t i v e reduction of n e a r l y 4 0 percent when i n f l a t i o n i s taken i n t o account. Moreover, from 1980-1986, Federal support f o r S t a t e and l o c a l drug abuse treatment and prevention e f f o r t s dropped over 4 0 p e r c e n t a f t e r i n f l a t i o n , even though t h e need f o r such s e r v i c e s increased d r a m a t i c a l l y over t h e same time period. Drug education programs received only $ 3 m i l l i o n of t h e Department of E d u c a t i o n ' s $18 b i l l i o n budget i n 1986. The Anti-Drug Abuse Act of 1986 added s u b s t a n t i a l new Federal f u n d s f o r demand reduction programs and accounts f o r t h e v a s t p o r t i o n of t h e treatment/prevention fundina i n c r e a s e s claimed b y t h e ~ d m i n i s t r a t i o n . d I1 O u t l a y s v . Budget A u t h o r i t y . . ration Posltlon* A l t h o u g h much h a s b e e n made o f a n a p p a r e n t d e c l i n e i n d r u g f u n d i n g i n t h e P r e s i d e n t ' s 1988 Budget, i n f a c t , t o t a l g o v e r n m e n t w d i n q , m measured, in g u t l a y g , a c t u a l l y i n c r e a s e s from 1987 t o 1988, t h e y e a r s of t h e s o - c a l l e d cuts. Comment Budget a u t h o r i t y i s a b e t t e r measure of program growth t h a n o u t l a y s , which m e r e l y r e f l e c t t h e r a t e a t which f u n d s a p p r o p r i a t e d by C o n g r e s s a r e s p e n t . B u d g e t a u t h o r i t y e s t a b l i s h e s t h e s i z e of t h e p r o g r a m . I n t e r m s of b u d g e t a u t h o r i t y , t h e A d m i n i s t r a t i o n ' s 1 9 8 8 r e q u e s t is $900 belaw t h e 1 9 8 7 l e v e l p r o v i d e d by C o n g r e s s . I11 C a p i t a l Equipment f o r I n t e r d i c t i o n r a t i o n P o s i t ion* Over $350 m i l l i o n p r o v i d e d by C o n g r e s s i n 1 9 8 7 w i l l p u r c h a s e c a p i t a l items, s u c h a s a i r c r a f t and t h e c o n s t r u c t i o n of i n t e l l i g e n c e c e n t e r s , t h a t s i m p l y do n o t need t o be r e p e a t e d year a f t e r year. Hence, t h i s money is n o t r e q u e s t e d i n 1988. Comment T h i s is t r u e , b u t t h i s view a p p a r e n t l y a s s u m e s t h a t t h e e q u i p m e n t p r o v i d e d i n l a s t y e a r ' s d r u g b i l l i s a l l t h a t is n e e d e d t o e f f e c t i v e l y combat t h e m a s s i v e i n f l u x o f d r u g s i n t o our country. J u s t l a s t week, h o w e v e r , Customs Commiss i o n e r W i l l i a m von Raab t e s t i f i e d b e f o r e t h e S e l e c t Committ e e t h a t n o t w i t h s t a n d i n g a l l t h e money a n d h i g h t e c h n o l o g y equipment we have e n l i s t e d i n our i n t e r d i c t i o n e f f o r t s t h r o u g h t h e omnibus l a w , i t w i l l be a number of y e a r s b e f o r e we see a n y i m p a c t o f t h e s e e f f o r t s on t h e a v a i l a b i l i t y o f d r u g s on o u r s t r e e t . Moreover, t h e S t a t e D e p a r t m e n t ' s r e c e n t l y i s s u e d I n t e r n a t i o n a l N a r c o t i c s C o n t r o l S t r a t e g y R e p o r t (INCSR) r e p o r t s e x p a n d e d p r o d u c t i o n of opium, c o c a , a n d m a r i j u a n a w o r l d w i d e . F o r t h e n e x t s e v e r a l y e a r s w e c a n c o n t i n u e t o e x p e c t bumper c r o p s o f i l l i c i t s u b s t a n c e s and more d r u g s t h a n e v e r b e f o r e t o be smuggled i n t o t h e U n i t e d S t a t e s T h e r e c a n be l i t t l e d o u b t t h a t a d d i t i o n a l a i r c r a f t , r a d a r s , s h i p s and o t h e r e q u i p m e n t a r e n e e d e d t o b u t t r e s s o u r i n t e r diction efforts. Rather than developing a comprehensive i n t e r d i c t i o n s t r a t e g y wrth t h e r e q u e s t s f o r r e s o u r c e s t o s u p p o r t i t , t h e Administration p r o p o s e s n o a d d i t i o n a l spending. IV S t a t e and Local Drug Enforcement A s s i s t a n c e . . istration Poutlon* The Budget proposes t e r m i n a t i o n of a $ 2 2 5 m i l l i o n drug enforcement g r a n t program t o S t a t e and l o c a l governments. T h i s one-time i n f u s i o n of 1987 funds can a s s i s t t h e governments i n s t a r t i n g programs and making i n i t i a l purchases, b u t i t need not become an on-going supply l i n e . Congress added t h e g r a n t program t o t h e 1986 Anti-Drug Abuse Act over t h e o b j e c t i o n s of t h e Administration, which f e l t a t t h e time t h a t t h e a c t i v i t i e s envisioned by t h e g r a n t were p r o p e r l y t h e r e s p o n s i b i l i t y of S t a t e and l o c a l governments t o fund. P a r t i a l l y o f f s e t t i n g t h e need f o r t h i s g r a n t program, t h e Federal Government continues t o s h a r e t h e proceeds generated by t h e a s s e t f o r f e i t u r e program, which i n 1986 d i s t r i b u t e d $ 2 4 m i l l i o n t o S t a t e and l o c a l p o l i c e departments and is expected t o award $28 m i l l i o n more t o t h e s e agencies i n 1987. Comment Congress d i d not intend t h i s program t o be a "one-time i n f u s i o n " of funds. Rather t h e program i s a u t h o r i z e d i n i t i a l l y for t h r e e years. The Federal Government has a c l e a r r e s p o n s i b i l i t y t o h e l p S t a t e and l o c a l governments combat drug t r a f f i c k i n g and drug-related crime. I f our f o r e i g n p o l i c y cannot r e s t r i c t t h e production of i l l i c i t drugs i n source c o u n t r i e s , and i f our i n t e r d i c t i o n e f f o r t s cannot keep a s i g n i f i c a n t amount of drugs off our s t r e e t s and schoolyards, then t h e Federal Government m u s t come t o t h e a s s i s t a n c e of S t a t e and l o c a l governments t h a t a r e bearing t h e major r e s p o n s i b i l i t y of responding t o drug t r a f f i c and abuse i n America. Sharing t h e proceeds of f o r f e i t u r e w i t h S t a t e and l o c a l agencies i s one way t o h e l p them cope w i t h t h e s e r i o u s drug crime problems they f a c e . I t i s not a s u b s t i t u t e f o r t h i s g r a n t program, however. F o r f e i t u r e can be cumbersome and time consuming. S t a t e and l o c a l governments cannot plan programs on t h e u n c e r t a i n and u n p r e d i c t a b l e recovery of f o r f e i t e d a s s e t s . Nor i s t h e scope of t h e a s s e t s h a r i n g program a t t h i s time l a r g e enough t o provide s i g n i f i c a n t a i d t o S t a t e s and l o c a l i t i e s . V Treatment and Prevention . . l s t r a t r o n Pos W* Comment Congress a p p r o p r i a t e d $ 2 5 2 m i l l i o n f o r 1 9 8 7 f o r expanded drug abuse t r e a t m e n t , prevention and research i n i t i a t i v e by t h e Department of Health and Human S e r v i c e s . were made a v a i l a b l e through 1988. These funds The Administration has decided t o allow o n l y one-half of t h e a d d i t i o n a l funds Congress provided t o be used t o s u p p o r t new i n i t i a t i v e s i n t h e a r e a s of drug abuse t r e a t m e n t , p r e v e n t i o n and r e s e a r c h . The remainder of t h e funds a r e t o be used t o s u p p o r t second year c o s t s of t h e new programs funded. In t h e omnibus drug b i l l , Congress was responding t o a drug abuse emergency. To f a c i l i t a t e an o r d e r l y and p r o d u c t i v e expansion of Federal e f f o r t s , Congress allowed two y e a r s i n which t o spend funds f o r new t r e a t m e n t , p r e v e n t i o n and r e s e a r c h programs. Congress i n t e n d e d , however, t h a t a l l - - n o t j u s t one-half--of t h e s e funds would be used f o r new i n i t i a t i v e s . The A d m i n i s t r a t i o n ' s d e c i s i o n i s t o t a l l y i n c o n s i s t e n t w i t h c o n g r e s s i o n a l i n t e n t and t h e s p i r i t of t h e drug b i l l . VI Drug Abuse Education . . r a t lon P o s l t ion* The Department of Education g r a n t program, funded a t $ 2 0 0 m i l l i o n i n 1987, w i l l be reduced t o a l e v e l of $100 m i l l i o n i n 1988. A higher l e v e l i s needed i n t h e f i r s t year f o r s t a r t - u p a c t i v i t i e s , such a s planning expenses and m a t e r i a l s , and t h e s e i n i t i a l expenses need not be r e p e a t e d . Comment Congress intended t h a t t h i s program would grow, n o t s h r i n k . The drug b i l l a u t h o r i z e d $200 m i l l i o n f o r 1987, $250 m i l l i o n f o r 1988 and $250 m i l l i o n f o r 1989. Witnesses have t e s t i f i e d b e f o r e our Committee t h a t i t makes l i t t l e sense f o r S t a t e and l o c a l e d u c a t i o n a l a g e n c i e s t o launch new and i n n o v a t i v e drug education programs i n our s c h o o l s i f Federal s u p p o r t w i l l be c u t i n h a l f a f t e r one year. I n a d d i t i o n , w i t n e s s e s have r e f u t e d t h e notion t h a t t h e r e a r e e x t e n s i v e s t a r t - u p expenses a s s o c i a t e d w i t h t h i s program. Witnesses have s a i d they expect t o use funds f o r personnel c o s t s a s s o c i a t e d with t r a i n i n g and d e l i v e r y of s e r v i c e s and t h a t such expenses would be r e c u r r i n g i t e m s , n o t one-time c o s t s . * Source f o r Administration p o s i t i o n i s a February 1987 OMB document e n t i t l e d , "The FY 1988 Budget: A s s e r t i o n s v s . Facts" APPENDIX C: PREPARED STATEMENT OF JAMES C. MILLER 111, DIRECTOR OFFICE OF MANAGEMENT AND BUDGET B e f o r e t h e S e l e c t Conunittee on N a r c o t i c s Abuse and C o n t r o l U. S . House of R e p r e s e n t a t i v e s Washington, D.C. March 25, 1987 With Accompanying Graphs Mr. Chairman and Members of the Committee: It's an honor to have this opportunity to discuss with you the President's budget for FY 1988 as it relates to drug law enforcement and drug abuse prevention and treatment programs. As you know, the President's budget must strike the difficult balance between reducing the deficit while maintaining, and in some cases increasing, Federal support for the core functions of Government. The drug programs contained in the FY 1988 budget clearly fall into this category of essential Government functions. In recent weeks the Administration has been accused of weakening in its resolve to fight an all-out war against drugs. Nothing could be further from the truth. From the President on down, every member of this Administration is totally committed to this war, and we're in it to win. As everyone in this room must surely know, the First Lady has devoted enormous amounts of her personal time and energy to persuading our Nation's young people to "say no" to drugs. The Attorney General and other members of the President's Cabinet have placed anti-drug programs among the highest priorities in their departments. Virtually the entire Cabinet meets once every month, in the forum of the National Drug Policy Board, to focus our attention on one single issue: how to improve in our fight against drugs. I believe that the Board is working well. Few other issues receive such continuing attention from so many cabinet officials. As a matter of fact, we expect an Executive Order to be signed very soon that will formally broaden the mandate of the Policy Board to encompass all drug related issues, including prevention and treatment, in addition to the drug law enforcement responsibilities enumerated in the enabling statute. And the President himself, in addition to providing moral inspiration and policy direction, has presided over the largest build-up of anti-drug resources our nation has ever experienced. If I may say so, calling this Administration soft on drugs is an accusation that simply ignores the facts. Let me explain: Since FY 1981, the first year of this Administration, resources devoted to drug enforcement, prevention, and treatment programs have grown by 220 percent in nominal dollars. That is, in FY 1987, the Federal Government will spend over three times as much on anti-drug programs as it did just six years ago. This growth has been concentrated in the high priority areas of investigations (up 185 percent), prosecutions (up 77 percent), interdictions (up 247 percent), corrections (up 263 percent), drug abuse prevention (up 277 percent), and drug abuse treatment (up 92 it will spend even percent). Under the President's budget, more in FY 1 4 8 8 ! ---The FY 1988 Budget requests a net increase of $72 million for drug law enforcement program outlays over outlays for FY 1987. This will provide for: -- More than 400 new workyears for D E A r s programs in investigations, intelligence, foreign operations, computer support, and technical support; -- Nearly 100 additional agent and support positions for the FBI's drug program; -- Approximately 500 new Federal litigators and support staff to prosecute drug traffickers; -- An increase of $24 million for the U.S. Marshalsf drug-related responsibilities of prisoner transportation and court security; -- The addition of approximately 800 new bed spaces to the Federal Prison System for drug violators; and -- Continued support for over 2,300 Treasury.and Justice Department enforcement personnel allocated to the Southwest border as part of Operation Alliance. This special Operation, which is a product of the Drug Policy Board, will greatly increase the government's anti-drug presence along the Mexican border. All of these items represent increases above what Congress provided for in FY 1987. Let me say once again, Administration-proposed spending for anti-drug programs, as measured in outlays, will actually be higher during FY 1988 than during FY 1987 (actually, $3.5 billion in FY 1988 vs. $3.0 billion in FY 1987). There has been much growth from FY 1981 to FY 1987, the year of the much-heralded Anti-drug Bill. But the President's Budget for FY 1988 will continue, and in some cases even increase the high operating levels achieved in FY 1987. Those who do not understand Federal budgeting have concluded that the Administration is backing away from its commitment to the war on drugs. This perception is in error. During FY 1987 we will purchase five aerostats, deploy four E-2C aircraft, construct three command and control centers and one intelligence center, and add several hundred new law enforcement personnel to our drug enforcement effort. Every one of these FY 1987 enhancements is fully supported in the FY 1988 Budget -- we' re even adding 300 more enforcement personnel in FY 1988 on top of the 1987 increases. And the activities in the President's budget are not limited to drug enforcement. The Budget proposes spending $385 million in FY 1987 and the same amount in FY 1988 to expand State and local treatment capacity, improve and disseminate revention models, and extend our knowledge of the causes o rug a use. This represents a greater than 80 percent increase over FY 1986. By utilizing a two-year spending plan we will continue the momentum developed in FY 1987 by maintaining treatment, research, and prevention program levels at the elevated FY 1887 level. h The President's Budget also proposes an unprecedented Federal commitment to drug prevention in the nation's schools and communities. The Budget funds the new drug abuse education program for the duration of its three-year authorization -- at $200 million in FY 1987, and $100 million in each of the next two fiscal years. The $200 million appropriated for FY 1987 will finance non-recurring costs such as planning and purchases of materials, as well as basic program operations. As in many Education programs that operate on a forward-funded cycle, considerable time will elapse between when funds are appropriated and when they are used at the local level. Local expenditures of Federal funds for drug education will be minimal in FY 1987 and will increase to a steady state level in FY 1988 and FY 1989. Thus, the FY 1988 request of $100 million should not lead to cutbacks in local programs. All this support for the drug program in the President's FY 1988 budget, and still the Administration is accused of cutting back on the drug war. Probably the best example of one such "reduction" -- not really a reduction at all -- is the large amount of money contained in the FY 1987 drug budget that will be spent on capital purchases. These purchases simply don't have to be repeated in 1988. The President said it best in his radio address this past Saturday. He said, "A priority item in this year's budget is the continuation of our battle against the scourge of drug abuse. We have tripled spending on drug programs since 1981. In fact, last year [I9871 we budgeted a large amount for the purchase of airplanes and the construction of certain facilities. Yet, this year, our budget was criticized for not asking for a repeat of these expenditures. Well, a lot of this spending on drug programs has been what accountants call capital costs, and now that we have the equipment and facilities, we don't have to buy them every year. In other words, the car is bought, now all we have to do is buy the gas, change the oil, and make normal repairs. Ask any businessman, he'll tell you that the start-up costs are always the highest. Anyone who's moved into an old home and had to fix it up knows that the initial expenses are the worst." And what are these capital purchases? Again, let me cite an example. The FY 1987 drug budget contains some $58 million to buy five aerostats for the Southwest border. These are radar balloons that will be used to detect drug smuggling aircraft entering the United States from Mexico. These five aerostats, together with the one purchased in FY 1986, will provide full radar coverage of the entire U.S/Mexican border, and we simply don't need any more down there. Because the aerostats were budgeted entirely in FY 1987, none of the costs appear in the FY 1988 budget. This is not a "reduction" in our drug effort -- it is simply a function of Federal budgeting which shows the entire cost of a capital purchase in the first year. But because the FY 1988 budget for this item is lower than the FY 1987 budget -- by $58 million in this instance (the cost of the aerostats) -- the Administration is accused of going soft on drugs. Let me state it again. We have not reduced funding to any Federal drug program that we consider to be an effective use of tax-payer money. In fact, the only reduction from FY 1987 to FY 1988 that I would acknowledge as a real reduction is our decision not to repeat the State and local drug grant program that Congress created in FY 1987. In this case, we have an honest difference of opinion with some Members of Congress over who ought to pay for local law enforcement operations. It is our view that programs which primarily benefit a local community should, in most cases, be paid for by that community. I would note that many of the grant programs funded in the 1970's by the Law Enforcement Assistance Administration (LEAA) were phased out for this very reason. In our view, there are few differences between the old LEAA grants and the newly-authorized State and local drug grants. It should also be noted that we never asked for these funds in the first place. Rather, it was Congress that added the program to the drug bill despite the Administration's objections. We don't believe it was a good use of Federal dollars then and we do not believe it is a good use of dollars now. Our position on this funding has been clear and consistent. Why anyone should be surprised at this is completely beyond me. But so much attention has been paid to this "reduction" that a very important fact has gotten lost in the shuffle. And that fact is that the FY 1988 budget also proposes major increases in a number of drug programs, as I enumerated earlier. In conclusion, Mr. Chairman, I hope that you and your colleagues on the committee will recognize that winning the war against drugs is not necessarily directly correlated with spending ever increasing Federal dollars on anti-drug programs. The anti-drug fight should be a partnership -the Federal Government, yes, but also State and local governments, schools, churches, unions, charitable organizations and, of course, families. That is, primarily, the message of the President's drug initiative of last year. Success on the drug battlefield depends on enlisting more institutions in our qreat struggle -- not seeking out and monopolizing every plausible anti-drug activity. To reiterate, this Administration is committed to fighting the war on drugs -- and winning it. We have not lost our zeal, we have not cut and run. We believe that every dollar that can be used effectively in the drug effort has been requested in the FY 1988 budget. Mr. Chairman, that concludes my statement. I shall be happy now to address any questions you or other members of the committee might have. DOJ, Custbms, Coast Guard Drug Enforcement Personnel 1 YEAR OPERATIONAL Existing stock YII/J Additions to stock U S . CUSTOMS SERVICE. COAST GUARD. AND DOD AEROSTATS -- - Aircraft Aircraft C-130 (CG) Aircraft t TRACKINO ASSETS (DD) (CG) - - B l a c k Hawk H e l i e o p t e r a (CS) -- H e l i c o p t e r s (DD) UWBahamas Task F o r c e r H i g h Speed H e l i c o p t e r s ( C S ) (CG) - Jet Aircraft H e l i c o p t e r s (CG) C e s e n a C i t a t i o n s (CS) (CS) - - - Support Helicopters K i n g A i r /Mohawk -- -- Units PlfPPI9=P=P*I C P I = I I E I I P I I = E = P 1 I D P ¶ I I I D I 1988 Request OkM c o e t s i n c l u d e d i n a l l years a s s e t s a r e o p e r a t e d El fi ~-D=PIPIP~ODE 198'7 Enacted ~PPI~~I=P=P-= Units EA 1986 Enacted ====EI=I-=CEIP Units IjA CUSTOMS SERVICE, COAST GUARD 6 N D DEFENSE (Budget A u t h o r i t y i n M i l l i o n s ) Capital coets included in year appropriated, Aircraft Single Engine A i r c r a f t --- G e n e r a l O p e r a t i o n s (CS) (funds t h e f o l l o w i n g i t e m s ) : rwin Engine A i r c r a f t C 3 1 C e n t e r s (CS) 1=PI=IPI=PIIIIE00131 OTHER RELATED ASSET8 * (C9) Marine A i r c r a f t High E n d u r a n c e A i r c r a f t (CHETS) - C-12 - IPIIP=l=tl=IPt==D=P=EO=IIz==I= INTERCEPTION - - Aerostatm ( p u r c h a s e DD) - E-2C A i r c r a f t (CS & CG) (purchase DD) - P w- 3/ 3 6MUo dr ai fdi ac ar t i(CS) on - 00 C-130 M o d i f i c a t i o n w / 3 6 0 r a d a r (DD) - 6erostats (CS) - - P-3 ==DIPLIEIPPPPPPP (CS) Customs S e r v i c e Coast Guard Defense Department D E T E C T I O N ASSETS CS CG UD U.S. A I R ASSETS