State Department and Related Agencies FY1998 Appropriations

State Department and Related Agencies FY1998 Appropriations

97-432 F
Updated December 10, 1997
CRS Report for Congress
Received through the CRS Web
State Department and Related Agencies
FY1998 Appropriations
Susan B. Epstein
Specialist in Foreign Policy and Trade
Foreign Affairs and National Defense Division
Summary
The President's FY1998 budget request, announced February 6, 1997, included
$5.41 billion for the Department of State, U.S. Information Agency (USIA), United
Nations (U.N.), Arms Control and Disarmament Agency (ACDA), and other U.S.
foreign policy-related organizations. The request represented nearly a 6% increase over
the FY1997 enacted appropriations. On March 17, 1997, the Administration also
submitted to Congress an FY1998 budget amendment that would provide authority to
make a one-time transfer of funds totaling $113 million from State to other U.S.
agencies that use overseas administrative services. The transfer would provide a
transition for a new cost-sharing system to be implemented by the end of FY1998.
Additionally, the President requested a supplemental for advance appropriations of $921
million for U.N. arrearages to be paid and scored in FY1999.
On June 5, 1997 Congress approved a five-year budget plan that would fully fund
all State and related agency programs at the President's request for FY1998. The House
passed its version of the Foreign Relations Authorization Act for FY1998 and FY1999
(H.R. 1757) June 11, 1997. The Senate Foreign Relations Committee marked up and
ordered reported the Senate version of the Foreign Relations Authorization for FY1998
and 1999 on June 12. Neither measure was passed by Congress, because of a
controversial international family planning provision that was attached in the House.
Both bills would have provided the required authority for State Department and related
agency spending nearly at the Administration's FY1998 request level, and both would
have authorized the President to reorganize the foreign policy agencies.
The full Senate passed its Commerce, Justice, State (CJS) appropriations bill (S.
1022)July 29 , providing $4.014 billion for State and $1.087 million for USIA. Th
th
e
House passed its CJS appropriations (H.R. 2267) on September 30, 1997. It provided
$4.002 billion for the State Department and $1.092 billion for USIA. On Nov. 13 ,
th
Congress passed the CJS appropriations which included a waiver of the requirement for
authorization prior to expenditure of State and related agency appropriations.
Congressional Research Service ˜ The Library of Congress

CRS-2
Background
The Administration’s FY1998 budget request for State and related agencies totaled
$5.4 billion, nearly 6% above the FY1997 enacted level, but 3% below the FY1995
enacted level, the year before the 104 Congress reductions. Both the House and Senate
th
bills set the FY1998 appropriations for State and related agencies at about $5.18 billion.
On November 13, 1997, Congress approved $5.22 billion--$4.04 billion for State , $1.1
billion for USIA.
State Department
The State Department's mission is to advance and protect the worldwide interests of
the United States and its citizens. Currently, the State Department houses the activities
of 50 U.S. government agencies and organizations operating 249 posts in over 180
countries around the world. From FY1994 through the end of FY1996, the State
Department reduced its staff by 1,900 full time equivalent positions and closed 30
overseas posts. State’s personnel levels continued to decline in FY1997 as the agency
hired below attrition levels.
The Administration's FY1998 budget request for the State Department totaled $4.25
billion, 6.9% above the FY1997 level and 8.8% above the FY1996 level. The
Administration of Foreign Affairs subtotal is 7.5% more than the FY1997 amount, while
the International Organizations and Conferences subtotal is up by almost 6% over the
enacted FY1997 level. Congress set the FY1998 State Department appropriation at $4.04
billion, which is more than either the House- or Senate-passed levels. Highlights follow:
! Diplomatic and Consular Programs (DC&P) -- The Administration's FY1998
budget request for diplomatic programs represented an increase of 1.3% from the
FY1997 level. Part of that increase ($595 million) was to come from retaining fees
collected from immigration, passport, and machine readable visa fees currently
deposited in the Treasury. The Administration requested new authority from
Congress for several agencies, including State, to retain such fees. Additionally,
the Administration submitted an FY1998 budget amendment seeking authority for
a one-time transfer of funds to various agencies that employ personnel in U.S.
embassies. The amendment allowed for a one-year transition period to implement
a new cost-sharing system known as the International Cooperative Administrative
Support Services (ICASS). Some foreign policy experts had expressed concern
that D&CP would not be sufficiently funded for a "first class diplomacy" if
Congress declined to pass new authority for fee retention but transferred funds out
of the account for ICASS. Congress passed $1.73 billion for this account, about
the same as the House level, but slightly higher than the Senate-passed level. It is
$17 million below the President’s request, but higher than the FY1997 level.
Congress included provisions permitting in FY1998 and FY1999 collection of
Machine Readable Visa fees and depositing them in this account, and establishing
procedures to implement ICASS.
! Capital Investment Fund (CIF) -- This fund provides resources for needed
investments in State's worldwide information system. In recent years,
communication and information equipment has deteriorated and State has not been

CRS-3
able to keep up with technology. This fund is designed to improve the
informational network to enable reliable and timely news flow to facilitate quick
and accurate decision-making. The President's request ($64.6 million) would have
increased this account by more than 160% from the FY1997 level of $24.6 million.
State contended that increases are necessary because of recent years of foregoing
much-needed repairs and updating of technology. Recognizing that State's
information systems are inadequate and in desperate need of updating, Congress
increased this account to $86 million, higher than the Administration request .
! Contributions to International Organizations (CIO) -- CIO provides funds for U.S.
membership in numerous international organizations and for foreign policy
activities that transcend bilateral issues, such as human rights. Maintaining a
membership in international organizations, the Administration argues, benefits the
United States by advancing U.S. interests and principles while sharing the costs
with other countries. Payments to the U.N. and its affiliated agencies, Inter-
American Organizations, as well as regional and other international organizations
are included in this account. The Administration's FY1998 request of $1.023
billion (an increase of 14.7%) reflected full funding of U.S. assessed contributions
and included $54 million in arrearage payments. In addition, the Administration
requested an advance appropriation of $921 million for arrears for CIO and
International Peacekeeping to be enacted as part of the pending FY1997
supplemental, but to be paid in FY1999. The Administration claimed that
congressional approval of the arrearage payment in 1997 would have provided the
United States with leverage in pursuing U.N. reforms prior to the expenditure in
1999.
1 The Senate approved $957 million for CIO, which included $54 million for
arrears, and made CIO funding contingent upon enactment of authorizing
legislation for U.N. reform. The House passed $979 million for CIO. Congress
approved of $955.5 million (including$54 million for arrearage payments), but
made CIO funding contingent on certain conditions.
! Contributions to International Peacekeeping -- The United States supports
multilateral peacekeeping efforts around the world through payment of its share of
the United Nation's assessed peacekeeping budget. Multilateral peacekeeping
often provides an alternative between doing nothing and unilateral U.S. action in
overseas situations of importance to the United States. The President's FY1998
request of $286 million represented full funding of projected peacekeeping
activities plus $46 million for an initial peacekeeping arrears payment. The
Administration request for peacekeeping was 18.8% below the FY1997 level of
$352.4 million. The Senate agreed to $200 million and the House passed $261
million for peacekeeping, both of which included $46 million for arrears.
Congress appropriated $256 million, including $46 million for arrears.
U.S. Information Agency (USIA)
USIA's mission is to understand, inform, and influence foreign publics as a means
of promoting U.S. national interests and dialogue between Americans, their institutions
1 For more detail, see CRS Report 97-347, U.N. and International Organization Arrears:
Advance Appropriation to Pay U.S. Outstanding Dues, by Vita Bite.

CRS-4
and their counterparts abroad. Two of USIA's primary activities include conducting U.S.
government (nonmilitary) international broadcasting and administering foreign exchange
programs. USIA has eliminated more than 1,000 positions since FY1994 and expects to
further reduce its current staff of 7,008 by an additional 120 positions in FY1998. The
agency closed 9 overseas posts from FY1994 to FY1996. In FY1997, USIA closed one
principal post and 6 branch posts overseas. The closing of 2 principal overseas posts is
planned for FY1998. The Administration FY1998 budget request for USIA totaled
$1.078 billion, up 1.7% from FY1997's enacted level, and virtually the same as the
FY1996 budget. The Senate set USIA's funding at $1.087 billion, while the House
approved $1.092 billion. Congress approved $1.101 billion for USIA’s FY1998 budget.
Highlights follow:
! Educational and Cultural Exchanges -- This account funds programs authorized
by the Mutual Educational and Cultural Exchange Act of 1961, such as the
Fulbright Academic Exchange Program, as well as leadership programs for foreign
leaders and U.S. professionals. Government exchange programs have come under
close scrutiny in recent years for being excessive in number and duplicative. The
Administration's FY1998 request of $197.7 million included a transfer of $11.8
million from the Salaries and Expenses account (funds that have been used in the
past to administer the exchange programs), and an increase of $565,000 to
establish an Office of U.S. Government International Exchange and Training
Coordination. After accounting for mandatory wage and price increases, the
request for this account, according to USIA officials, represented a funding
reduction of $4.6 million over the FY1997 level. The Senate approved $200
million for exchanges, including a recommendation of $99.2 million for the
Fulbright Program in FY1998. The House voted for $193.7 million, including
$94.2 million for the Fulbright program. Both the full Senate and House agreed
with the Administration request of $565,000 for an international exchange
coordination office. Congress appropriated $197.7 million for this account,
including $94.2 million for the Fulbright program. The conference agreement did
not include funding for an international exchange coordination office, however.
! International Broadcasting -- This account funds all U.S. government nonmilitary
international broadcasting, including the Voice of America (VOA), Broadcasting
to Cuba, Radio Free Europe/Radio Liberty (RFE/RL), and Radio Free Asia (RFA).
The President's $366.8 million FY1998 budget request was 4.8% below the
enacted FY1997 level. It reflected continued savings from the reorganization of
international broadcasting in FY1995, mandatory wage and price increases, as well
as an increase in program funding of $1 million for audience research.
Broadcasting to Cuba's funding requirement was estimated by the Administration
to be $22.1 million, down from FY1997's level of $24.8 million largely because
of its move from Washington, D.C. to Miami. The Senate passed $339.7 million
for broadcasting which included a recommendation of $20 million for RFA. The
Senate also provided a separate direct funding level of $22.1 million for Cuba
Broadcasting. The House passed $391.6 million, including unspecified funding
levels for Cuba Broadcasting and a recommendation of $30 million for RFA.
Congress funded international broadcasting at $364.4 million, including $25
million for RFA and VOA broadcasting to Asia. In addition, Cuba Broadcasting
received a direct appropriation of $22.1 million for FY1998.

CRS-5
! Technology Fund -- The Technology Fund was established in 1996 to provide a
central source of funding to modernize the agency's nonbroadcasting computer and
telecommunications infrastructure and to replace an investment strategy that has
relied on year-end funds. The Administration requested $7 million in FY1998 for
this account, up more than 37% over the current funding level of $5.1 million. The
increased funding was to develop a new integrated financial management system,
improve telecommunications with and between posts, and develop a digital library
targeted toward USIA's overseas audiences. Noting that the USIA has had to meet
increasing demands with declining resources, the Senate nearly doubled the
President's request, setting this account at $10 million for FY1998. The House
voted to continue this account at its FY1997 level of $5.1 million which is the
level that Congress appropriated.
! East-West and North-South Centers -- The Center for Cultural and Technical
Interchange between East and West (East-West Center), located in Honolulu, HI,
was established in 1960 by Congress to promote understanding and cooperation
among the governments and peoples of the Asia/Pacific region and the United
States. The Center for Cultural and Technical Interchange between North and
South (North-South Center) is a national educational institution in Miami, FL,
closely affiliated with the University of Miami. It promotes better relations,
commerce, and understanding among the nations of North America, South
America, and the Caribbean. The North-South Center began receiving a direct
subsidy from the federal government in 1991. The FY1998 Administration request
for these centers was $8.5 million, down 26.1% from the FY1997 level. While
requesting less, the Administration urged the centers to seek funds from private
sources. In contrast, the Senate passed $22 million for the East-West Center and
$3 million for the North-South Center. The House, on the other hand, voted to end
funding for both the East-West or the North-South Center. Congress passed $12
million for the East-West Center and $1.5 million for the North-South Center.
Arms Control and Disarmament Agency
ACDA's mission is to strengthen U.S. national security by advocating, formulating,
negotiating, implementing and verifying sound arms control nonproliferation, and
disarmament policies and agreements. This quasi-independent agency has close
bureaucratic ties to the Department of State. (For more detail on ACDA, see CRS Report
95-692, Arms Control and Disarmament Agency: Background and Current Issues).
The Administration's FY1998 budget request for ACDA totaled $46.2 million--.
$42.1 million for ongoing ACDA activities and $4.1 million for new activities, such as
the Comprehensive Test Ban Treaty, the Chemical Weapons Convention, and Non
Proliferation. The Senate Committee referred to the imminent absorption of ACDA into
State and, therefore, recommended a reduction in ACDA funding to $32.6 million in
FY1998. The full Senate agreed. The House approved funding ACDA at its current level
of $41.5 million. Congress agreed with the House-passed level, but also rescinded
$700,000 of unexpended no-year funds.

STATE DEPARTMENT, USIA, & RELATED AGENCIES APPROPRIATIONS
(millions of dollars)
FY1995
FY1996
FY1997
FY1998
FY1998
House
Senate
Conf.
Enacted
Enacted
Enacted
Request
+/-
FY1997
(%)
Department of State
Diplo. & Consular Prog.
1,725.3*
1,713.7
1,725.3
1,747.0a
+1.3
1,731.0
1728.6
1,730.0
Salaries and expenses
383.9
367.9
352.3
363.5
+3.2
363.5
363.5
363.5
Off. of Inspector Gen.
23.9
27.3
27.5
28.3
+2.9
28.3
27.5
27.5
Representation
4.8
4.5
4.5
4.3
-
4.3
4.1
4.2
Buying power
0.0
0.0
-.-
0.0
-.-
-.-
0.0
-.-
Protec.-missions &
9.6
8.6
8.3
7.9
-
7.9
7.9
7.9
Security/maint. of
391.8*
321.3*
389.3
373.1
-
373.1
420.3
404.0
Moscow Embassy
0.0
0.0
-.-
-.-
-.-
-.-
0.0
-.-
Emerg.-diplo.& consular
6.5
6.0
5.8
5.5
-
5.5
5.5
5.5
Repatriation loans
.8
.8
1.3
1.2
-
1.2
1.2
1.2
Paym. Am. Inst Taiwan
15.5
15.1
14.5
14.5
-.-
14.0
14.5
14.0
For. Serv. Retirement
129.3
125.4
126.5
129.9
+2.7
129.9
129.9
129.9
MRV Fee Receipts
-.-
-.-
-.-
140.0
-.-
-.-
(140)
-.-
Capitol Investment Fundb
.5
16.4
24.6
64.6
+162.6
50.6
105.0
86.0
Total, Admin. of For. Affairs
2,691.9
2,607.0
2,679.9
2,879.8
+7.5
2,709.3
2808.0
2,773.7
Internat. Orgs and Conf.
Contrib to int'l. orgs.
872.7
892.0
882.0
1,023.0
+14.7
979.0
957.0
955.5
Contrib intl peacekeep
518.7*
359.0
352.4
286.0
-
261.0
200.3
256.0
Int'l. peacek. Supp
-.-
-.-
-.-
-.-
-.-
-.-
-.-
-.-
Int'l. conf./ contingen
6.0
3.0
10.0
4.9
-.-
1.5
0.0
0.0
Total, Int'l. Organ. & Conf.
1,397.4
1,254.0
1,244.4
1,313.9
+5.6
1,241.5
1157.3
1,211.5
Total Intern'l Commissions
40.0
39.1
42.0
45.2
+7.6
43.9
44.2
44.0
Asia Foundation
15.0
5.0
8.0
8.0
0%
8.0
5.0
8.0
Total, Department of State
4,144.3
3,905.1
3,974.3
4,246.9
+6.9
4,002.7
4014.5
4,037.2
U.S. Information Agency (USIA)
Salaries and expenses
475.4
445.4
441.4
434.1
-
430.6
427.1
427.1
Off. of the Inspector Gen.
4.3
0.0
0.0
-.-
-.-
-.-
-.-
-.-
Technology Fund
-.-
5.1
5.1
7.0
+37.3
5.1
10.0
5.1
Educ.& cultur exch prog.
233.3c*
199.7
185.0
197.7
+6.9
193.7
200.0
197.7
Radio construction
69.3*
32.6*
35.5
32.7
-
40.0
32.7
40.0
International Broadcasting
VOA/WORLDNET
239.1
324.9
350.0
366.8
+4.8
391.6
339.7
364.4
Broadcasting to Cuba
24.8
24.8
(25.0)
(22.1)
-
-.-
22.1
22.1
Radio Free Asia
5.0*
(5.0)
-.-
(9.3)
-.-
(30.0)
(20.0)
(25.0)
Board Int. B'dcastingd
229.7
0.0
-.-
-.-
-.-
-.-
-.-
-.-
Trust Fund Programs
4.0
.9
1.0
1.0
0%
1.0
1.0
1.0
East-West & other centers
28.5
13.8
11.5
8.5
-
-.-
25.0
13.5
Nat'l. Endow. Democ
34.0
30.0
30.0
30.0
0%
30.0
30.0
30.0
Total, U.S.I.A.
1,347.4
1,077.2
1,059.5
1,077.8
+1.7
1,092.0
1087.0
1,100.9
Arms Contr & Disarmament
50.4
38.6
41.5
46.2
+11.3
41.5
32.6
41.5
Miscellaneous For. Affairse
44.6
42.5
42.2
43.4
+2.8
42.7
42.3
42.5
TOTAL STATE &AGENC
5,586.7
5,063.4
5,117.5
5,414.8
+5.8
5,178.9
5176.4
5,221.4*
*
Accounts adjusted by FY1995 or FY1996 rescissions, or the President's FY1997 supplemental request. FY1998 Conference
Total reflects a $700,000 rescission from ACDA of unspent no year funds.
aIncludes $455,000,000 in estimated sums to be derived from immigration, passport and other fees; requires new authority.
Established by the Foreign Relations Authorization Act for FY 1994 and FY 1995.
b
cExcludes a transfer from AID of $42.0 million.
Prior to FY1996, BIB received separate appropriations, independent of USIA.
d
eInternational Trade Commission, Japan-U.S. Friendship Commission, Competitiveness Policy Council, and Commissions for the
Preservation of America's Heritage Abroad, and Security and Cooperation in Europe.