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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-207

======================================================================



 
  FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2008

                                _______
                                

 June 22, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Serrano, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2829]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for financial services and general government 
for the fiscal year ending September 30, 2008.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page number

                                                            Bill Report
Planning for essential long-term budget needs..............    --
                                                                      2
Projects...................................................    --
                                                                     10
Operating plan and reprogramming procedures................    --
                                                                     11
Relationship with budget offices...........................    --
                                                                     12
Quality of budget documents................................    --
                                                                     12
Committee hearings.........................................    --
                                                                     12
Program, project, and activity.............................    --
                                                                     13
Title I--Department of the Treasury........................     2
                                                                     13
Title II--Executive Office of the President and Funds 
    Appropriated to the President..........................    18
                                                                     32
Title III--The Judiciary...................................    31
                                                                     42
Title IV--District of Columbia.............................    39
                                                                     48
Title V--Independent Agencies:
        Consumer Product Safety Commission.................    52
                                                                     53
        Election Assistance Commission.....................    53
                                                                     54
        Federal Communications Commission..................    54
                                                                     56
        Federal Deposit Insurance Corporation..............    55
                                                                     58
        Federal Election Commission........................    55
                                                                     58
        Federal Labor Relations Authority..................    56
                                                                     58
        Federal Trade Commission...........................    56
                                                                     59
        General Services Administration....................    58
                                                                     61
        Merit Systems Protection Board.....................    69
                                                                     70
        Morris K. Udall Foundation.........................    70
                                                                     71
        National Archives and Records Administration.......    71
                                                                     71
        National Credit Union Administration...............    73
                                                                     74
        Office of Government Ethics........................    74
                                                                     75
        Office of Personnel Management.....................    74
                                                                     75
        Office of Special Counsel..........................    78
                                                                     79
        Securities and Exchange Commission.................    78
                                                                     79
        Selective Service System...........................    80
                                                                     81
        Small Business Administration......................    81
                                                                     81
        United States Postal Service.......................    83
                                                                     84
        United States Tax Court............................    84
                                                                     86
Title VI--General Provisions--This Act.....................    84
                                                                     87
Title VII--General Provisions--Government-wide: 
    Departments, Agencies, and Corporations................    93
                                                                     93
Title VIII--General Provisions, District of Columbia.......   130
                                                                     96
House of Representatives Report Requirements:
        Constitutional authority...........................    --
                                                                     98
        Statement of general performance goals and 
            objectives.....................................    --
                                                                     98
        Appropriations not authorized by law...............    --
                                                                     99
        Transfers of funds.................................    --
                                                                    101
        Compliance with rule XIII, clause 3(e) (Ramseyer 
            rule)..........................................    --
                                                                    102
        Rescissions........................................    --
                                                                    111
        Changes in the application of existing law.........    --
                                                                    111
        Comparison with the budget resolution..............    --
                                                                    122
        Five-year outlay projections.......................    --
                                                                    122
        Financial assistance to state and local governments    --
                                                                    122
        Earmarks...........................................    --
                                                                    123
        Full Committee votes...............................    --
                                                                    129
        Tabular summary of the bill........................    --
                                                                    130
        Additional Views...................................    --
                                                                    144

             Planning for Essential Long-Term Budget Needs

    The Committee believes that it is important to plan now for 
the long-term strength of the economic and social fabric of the 
country. The American people expect and deserve the best 
services their government can offer. Unfortunately, over the 
past several years government services have become deficient in 
many important areas. The American people deserve better.
    This bill includes recommendations that will begin to close 
the gap between the basic government services that are 
currently available and the services that this Nation needs. 
The Committee does not have the budgetary resources, nor does 
it propose, to close this gap in one year. However, the 
Committee believes that sound planning for the future involves 
making a down payment today toward better government services 
in the future.
    The population of the United States has grown by 73 million 
people, or 32 percent, since 1980. The census bureau predicts 
that, by 2010, the population will be close to 309 million. At 
the same time, non-defense discretionary spending has been 
severely curtailed. Such spending amounted to 5.2 percent of 
the gross domestic product in 1980, whereas it now represents 
3.6 percent of GDP. It is not surprising that government is 
unable to meet many basic needs in the face of a reduction of 
that magnitude.
    The programs funded by this bill are an important part of 
efforts to provide good government to all Americans, regardless 
of economic or social background. In this bill, Congress can 
improve the effectiveness and fairness of enforcement of the 
payment of tax obligations of those who are responsible for the 
tax gap, which is the difference between the taxes that should 
be paid and the taxes that are actually paid voluntarily and on 
time. The bill can also offer strong regulatory protections for 
consumers and investors, encourage financial opportunities for 
communities and small businesses, and enhance essential 
government services by supporting the people and infrastructure 
that provide those services.

                          CLOSING THE TAX GAP

    According to the Internal Revenue Service (IRS), taxpayers 
paid about $1.8 trillion in taxes on time in 2001. Research 
conducted by the IRS has estimated that the ``tax gap'', or the 
difference between total Federal taxes owed and the tax 
collections received, was $345 billion for tax year 2001. Once 
IRS collection and enforcement actions are taken into account, 
the net tax gap is estimated to be $290 billion. Others have 
disputed this figure and argued that the actual figure is 
higher. In addition to the effect of the tax gap on overall 
Federal resources, the very existence of the tax gap stands 
contrary to IRS efforts to promote compliance. The Committee 
agrees with the assessment of the IRS Oversight Board in its 
most recent annual report that ``the tax gap is an injustice to 
compliant taxpayers who ultimately are bearing the financial 
burden of those who do not pay what they owe, whether 
intentionally or not.'' As the IRS National Taxpayer Advocate 
noted in her annual report this year, the existence of the tax 
gap effectively amounts to a per-taxpayer ``surtax of more than 
$2,200 to subsidize noncompliance by others.''
    The Government Accountability Office (GAO) has listed 
``Enforcement of Tax Laws'' among the items on its latest 
``High-risk Series'' (report number GAO-07-310). In this 
report, GAO notes that ``enforcement of tax laws is vital to 
promote compliance by giving taxpayers confidence that others 
are paying their fair share.'' While a commitment to tax law 
enforcement is one important way to maximize tax compliance, 
the Committee strongly believes that enforcement efforts should 
not be disproportionately focused on low-income taxpayers. For 
example, it was revealed last year that the IRS had delayed 
thousands of tax refunds under the Earned Income Tax Credit 
(EITC), and the vast majority of the refund claims were not 
fraudulent but were in fact the legitimate EITC claims of 
families and individuals. Today, fully 40 percent of all IRS 
individual examinations are of EITC claims, even though just 17 
percent of individual tax returns claim the EITC. This is 
clearly a disproportionate audit focus on the poor. It is all 
the more troubling considering a recent finding by GAO with 
regard to audits of individuals who use offshore tax havens. 
Even in offshore tax haven cases in which agents have seen 
signs of tax evasion, the IRS has been either prematurely 
ending many of these audits, or even declining to conduct 
audits in the first place, in order to comply with the 3-year 
statute of limitations on offshore cases.
    With regard to its fiscal year 2008 budget request, the 
Administration has proposed $291 million in new enforcement 
initiatives in its fiscal year 2008 budget request, and the 
Treasury Department's fiscal year 2008 budget in brief notes 
that ``once the new staff proposed in this request are trained 
and gain more experience, the enforcement revenue generated 
each year will be $699 million. However, this estimate excludes 
the likely larger revenue impact from the deterrence value of 
these and other IRS enforcement programs (e.g., criminal 
investigations).'' The Committee notes that since $699 million 
is obviously a very small portion of the overall tax gap, the 
indirect effect of these enforcement initiatives would need to 
be quite significant in order to have any appreciable impact on 
the overall tax gap. In addition, the Administration has issued 
a package of legislative proposals aimed at improving tax 
compliance. But these proposals are estimated to raise just $29 
billion over 10 years, a mere one percent of the net tax gap.
    While a commitment to tax law enforcement is important in 
maximizing tax compliance, the Committee believes that a strong 
commitment to IRS taxpayer service is equally important. As the 
IRS Oversight Board annual report notes, ``Both good customer 
service and vigorous enforcement of the tax law benefit 
taxpayers. It is not an either/or proposition; both are 
necessary for effective tax administration. Good service leads 
to fully informed and satisfied taxpayers who understand their 
tax obligations and experience few problems when interacting 
with the IRS.'' While the Committee applauds the joint efforts 
of the IRS, the IRS National Taxpayer Advocate, and the IRS 
Oversight Board in developing the recent Congressionally-
mandated Taxpayer Assistance Blueprint (TAB), the Committee 
believes that a sustained, long-term commitment to funding and 
strengthening IRS taxpayer services must be included in any 
strategy for closing the tax gap.
    Overall, the Committee believes strongly that the following 
priorities must be pursued by this Committee both this year and 
in years to come:
     Consistent growth in the budget of the Internal 
Revenue Service. In his September 2002 ``Report to the IRS 
Oversight Board: Assessment of the IRS and the Tax System,'' 
former IRS Commissioner Charles Rossotti called for a two 
percent annual growth in IRS staff together with a 3 percent 
annual productivity growth, similar to recommendations made by 
the National Commission on Restructuring the IRS in 1997. But 
current IRS staff levels are far below what Commissioner 
Rossotti argued would be needed to help close the tax gap. The 
Commissioner's report noted that due to continued growth in the 
IRS workload and the large accumulated backlog of cases, strong 
productivity growth alone could not possibly close the 
compliance gap. The Committee strongly believes that consistent 
staff growth at the IRS merits attention and resources.
     Regular research efforts to determine which 
taxpayer service and enforcement strategies are important and 
effective at closing the tax gap. The Committee agrees with the 
assessment of the IRS National Taxpayer Advocate and the IRS 
Oversight Board that the IRS must conduct regular, ongoing 
research to determine the most effective taxpayer service and 
enforcement strategies for reducing the tax gap. While the 
Committee is supportive of the Administration's proposal to add 
funding for regular research efforts into the base budget of 
the IRS, the Committee also agrees with the recommendation of 
the IRS Oversight Board that the IRS should develop a long-
range strategic plan for research that goes beyond the IRS 
Strategic Plan's 2009 end date. The Committee directs IRS to 
work with the IRS National Taxpayer Advocate and the IRS 
Oversight Board to develop a 5-year strategic plan for 
research. The plan should be delivered to the Committee by no 
later than 120 days after the date of enactment of this Act.
     Funding and Oversight of IRS Business Systems 
Modernization (BSM). The IRS continues to experience occasional 
cost overruns and delays associated with its multi-year effort 
to modernize its computer systems. Challenges and risks remain, 
and BSM continues to remain on the Government Accountability 
Office's (GAO) ``high risk list''. Nevertheless, the Committee 
believes that the overall BSM effort is much better focused 
than it has been in the past. As GAO noted in a report this 
year, BSM ``is critical to supporting IRS's taxpayer service 
and enforcement goals and reducing the tax gap.'' As long as 
the IRS depends on outdated tools to perform its critical 
functions, the overall system of tax administration will not be 
in a position to effectively address the tax gap. For example, 
the IRS Oversight Board report points out that currently 
``taxpayers cannot access their own account information 
electronically as they can routinely do with their bank, credit 
card and mutual fund accounts.'' BSM is critical to allowing 
the IRS to perform its tax administration functions at peak 
efficiency and effectiveness. The Committee believes that, 
notwithstanding the wasted dollars of the past and the 
challenges and risks of the present, the BSM program is a vital 
part of the future of both service and enforcement efforts. BSM 
should be provided sustained funding and close oversight both 
this year and in future years in order to fully modernize the 
IRS as soon as possible.

 PROVIDING FINANCIAL OPPORTUNITY TO DISADVANTAGED AND RURAL COMMUNITIES

    The Committee finds that there is a crucial need for 
expanding financial services to disadvantaged and rural 
communities, in order to reduce the reliance on such high-cost 
alternative services such as payday lending. An estimated 22 
percent of low-income households lack a bank or credit union 
account.
    The Subcommittee on Financial Services and General 
Government held a hearing earlier this year on the subject of 
financial services for disadvantaged communities. Among the 
issues discussed at the hearing, two very strong needs were 
identified:
     Community Development Financial Institutions 
(CDFI) Fund. While several government agencies have addressed 
this issue, the Treasury CDFI Fund has particularly helped to 
expand the availability of credit, capital, and financial 
services to underserved communities throughout the Nation. A 
community development financial institution, or CDFI, is a 
legally-existing entity and a predominantly financing entity 
whose primary mission is community development. CDFI's include 
banks, credit unions, loan funds, and venture capital funds. 
Among CDFI banks and credit unions, one-half offer alternatives 
to payday loans, and nearly 40 percent provide check-cashing 
services to people who do not have accounts with these 
institutions. Yet while the number of certified CDFI's has 
increased in recent years, from 468 in 2001 to 774 by the end 
of 2006, the annual appropriation provided to the CDFI Fund has 
declined during these same years, from $118 million in fiscal 
year 2001 down to just $54.5 million in fiscal years 2006 and 
2007.
    On average, each Federal dollar invested in the CDFI Fund 
leverages an additional 27 dollars in non-Federal funds. An 
increased appropriation to the CDFI Fund will, among other 
things, help provide additional financial and technical 
assistance to a larger number of CDFI's throughout the Nation. 
This, in turn, will help to further advance the goal of 
providing better and lower-cost financial services to 
disadvantaged and rural communities in the United States. The 
Committee believes strongly that there must be a renewed 
commitment over the next several years to providing sufficient 
resources to the CDFI Fund to help promote the program's 
objectives, including the wider availability of low-cost 
financial services.
     Financial Education. The need to promote the 
importance of saving in financial institutions was identified 
by the Chairman of the Board of the National Credit Union 
Administration (NCUA), and by the Director of the CDFI Fund, 
who testified that ``if you spend 10 hours with a young person 
on financial education, it sets them on a path that will do 
them well for their entire life . . .'' The Committee has 
provided an increase of $200,000 above the request for the 
Treasury Department's Office of Financial Education to expand 
its activities and to help it provide better leadership over 
the National Strategy for Financial Literacy. The Committee has 
also provided funding increases for the Internal Revenue 
Service (IRS) and the Securities and Exchange Commission (SEC) 
for education and financial literacy. The Committee believes 
that these activities need ongoing attention and resources, and 
that there must be a particular emphasis on the financial 
education of students in elementary and high schools.
    In addition, as the Director of the CDFI Fund recently 
noted in testimony before the Financial Services Appropriations 
Subcommittee, CDFI's must participate in financial education 
programs in order to receive funding. An increased commitment 
of federal resources to the CDFI Fund will lead to a 
corresponding increase in financial education efforts. Overall, 
the Committee believes strongly that a long-term commitment of 
support for financial education efforts is essential throughout 
Government, including at Treasury's Office of Financial 
Education, the IRS, the SEC, and the CDFI Fund.
    Other, less obvious, government efforts also help to reduce 
the reliance on high-cost financial services in disadvantaged 
communities. For example, a strong ongoing commitment to fund 
IRS Business Systems Modernization efforts, together with 
strong oversight of those efforts, will help ensure that IRS 
computer systems are fully modernized and able to process and 
send tax refunds much quicker than is currently the case. The 
anticipation of a quicker refund from the IRS can serve to 
dissuade low-income taxpayers from seeking to purchase Refund 
Anticipation Loans, whose costs often amount to a significant 
portion of tax refunds.

           STRENGTHENING REGULATORY OVERSIGHT AND ENFORCEMENT

    Corporate ethics and accountability have received a lot of 
notice in recent years. Headlines regarding financial 
accounting scandals, contracting irregularities in Iraq, 
insider trading, and dangerous consumer products have caught 
the attention of many people concerned about how such problems 
erode the confidence of consumers and investors. Over the long-
term, the continuation of these problems will threaten the 
economic strength of the Nation. The agencies that are 
responsible for deterring such problems must not be asleep at 
the switch.
    Many businesses and corporations have acknowledged these 
problems and have responded by increased standards of corporate 
responsibility and self-regulation. However, serious problems 
persist among those who place the enhancement of their personal 
wealth above social and ethical considerations.
    The rigorous enforcement of laws and regulations relating 
to consumer protection and securities markets is an important 
element in deterring wrongdoing and promoting corporate and 
individual responsibility. In this bill, the Committee 
recommendations begin to provide the resources that will enable 
several critical regulatory and enforcement agencies to better 
fulfill their missions. Yet, the funding provided by this bill 
must be seen as just a down payment on a renewed effort to give 
these agencies the tools they need to strengthen regulatory 
oversight and enforcement. In the coming years, the Committee 
should view consumer protection as an essential government 
service to which more resources can be directed for the benefit 
of the American people.
    Consumer products. The Consumer Product Safety Commission 
(CPSC) is charged with reducing the unreasonable risk of injury 
associated with more than 15,000 consumer products. The agency 
was involved in 471 product recalls in fiscal year 2006. 
However, the most important of the agency's resources--its 
people--has been in decline. From a high of 978 in 1980, 
staffing declined to 518 by 1994 and is proposed in the 
President's budget to be capped at 401 in 2008. The latest 
budget cuts come at a time when the CPSC should be preparing 
for the future so it can meet new challenges relating to 
emerging product technologies. This bill includes increases of 
$4,110,000 above fiscal year 2007 and $3,588,000 above the 
President's request to support additional staff and information 
technology improvements for the Commission.
    Fraudulent or misleading commercial practices. The Federal 
Trade Commission (FTC) has two vital missions: consumer 
protection and maintaining competition. The agency is currently 
active in efforts to deter and prosecute credit and financial 
fraud, as well as identity theft, and it takes action against 
companies that fail to protect sensitive customer data. The FTC 
also has authority to act against illegal subprime lending 
practices. However, the FTC will need additional tools and 
resources in the future to keep up with new challenges, such as 
new Internet and other technologies that provide violators with 
creative ways to scam the public. The FTC also needs to 
maintain a vigorous antitrust program, which benefits consumers 
by keeping prices lower through competition. For fiscal year 
2008, this bill provides increases of $36,200,000 above fiscal 
year 2007 and $7,250,000 above the President's request to 
provide additional support for the FTC's activities.
    Investor protections. The Securities and Exchange 
Commission (SEC) investigated 46 insider trading cases in 
fiscal year 2006. The agency also promotes healthy capital 
markets and promotes informed decision-making by investors 
through corporate compliance with financial disclosure rules. 
The complexities of financial markets require that the SEC 
recruit and retain individuals who are well-trained and 
experienced. There are now over 10,000 publicly traded 
companies in the United States. The number of American 
households investing in the stock market increased from 15.9 
million in 1983 to 56.9 million in 2005, an increase of 258 
percent. The Committee is concerned, however, that under-
enforcement of securities laws and regulations would have a 
harmful effect on investor confidence and lead to reduced 
participation in the markets. The SEC must have sufficient 
resources to meet fully its enforcement responsibilities. This 
bill includes increases of $15,882,000 above fiscal year 2007 
and $3,112,000 above the President's request to enhance the 
SEC's enforcement program, as well as to support the investor 
education and assistance programs which is the SEC's primary 
point of contact with investors who complain about the possible 
mishandling of their investments by securities professionals.
    The future of telecommunications. The Federal 
Communications Commission (FCC) oversees a rapidly changing and 
expanding telecommunications environment. The digital age has 
revolutionized communication and how the public receives 
information. The FCC must keep up with these continuing changes 
so it can meet its missions of promoting investment and 
competition in the telecommunications industry, protecting 
consumers from privacy violations such as the unauthorized use 
of phone records, ensuring public safety needs are met, and 
promoting Internet access and choice. The bill includes an 
increase of $21,718,000 over the current fiscal year to support 
these critical activities.
    Fines and penalties. The Committee is concerned over the 
level of deterrence that is established when civil and criminal 
monetary penalties assessed by regulatory agencies are set too 
low. When such penalties simply become a cost of doing business 
for violators, they cease to be an effective enforcement tool. 
The Committee believes that Congress should look at whether 
current penalties provide an adequate deterrent to unsafe 
products, consumer fraud, deceitful marketing, and inadequate 
protection of customer information.

      SUPPORTING GOOD GOVERNMENT THROUGH PEOPLE AND INFRASTRUCTURE

    A strong Federal workforce needs to exist if government is 
to deliver effective services to the American people. 
Unfortunately, the Federal workforce has been under attack. 
This attack dates to the previous Administration and efforts to 
``reinvent'' government and ``right-size'' the workforce. 
``Right-sizing'' was a code word for ``downsizing'', and 
downsizing often resulted in reduced services for citizens.
    The current Administration has taken this concept a step 
further by increasing reliance on contractors, cutting back on 
the resources--people and money--for basic government services, 
and allowing the physical infrastructure of government to 
deteriorate. There has been too little emphasis on creating a 
workforce that is ``right-skilled'' or on offering the ``right-
services''. These ill-advised policies result in a government 
that is distant from the people that it should serve; 
government needs to return to being easily accessible and 
helpful to all Americans.
    In 1980, the Federal civilian workforce totaled 1.2 million 
people. Since that time, the population of this Nation has 
increased 32 percent, while the number of civilian workers 
providing services to those people has declined 13 percent. 
That number has declined by 10 percent just since 1994.
    The decline in the public's accessibility to government 
services is also reflected in the cutting back of locations 
throughout the Nation where the public can go for assistance. 
Agencies' regional or state offices have been eliminated or 
consolidated in order to save a few dollars, but the real 
impact is seen in the public's reduced accessibility to 
government. For example, the Department of Agriculture's Farm 
Service Agency (FSA) closed 418 local offices across the 
country from 1995 to 2006 in order to manage its reduced budget 
and staff. This forces farmers to either stop using FSA 
services or drive many extra miles to visit an office. The 
Federal government needs to put resources where they are most 
needed to provide the services it offers.
    In addition to people, these resources must include 
physical infrastructure to support government services. Major 
public physical capital investment has declined as a percent of 
gross domestic product from 2.8 percent in the mid-1980s to an 
estimated 1.5 percent in fiscal year 2008. An example of this 
decline can be seen in spending on grants for investments in 
community and regional development, which fell 61 percent in 
inflation-adjusted terms from fiscal year 1980 to fiscal year 
2006.
    Government contracting. While the current Administration 
likes to take credit for ``reducing'' the size of government, 
it has also overseen the largest expansion of a ``hidden 
government'' of contractors in the history of the Nation. 
Spending on federal contracts has grown by $175 billion under 
this Administration and totaled roughly $400 billion in fiscal 
year 2006. This makes contracting one of the fastest, if not 
the fastest, growing component of the Federal budget. This 
trend does not bode well for the future as it becomes harder to 
monitor contractor performance and ensure the effective use of 
taxpayers' dollars.
    It should also be noted that the United States Government 
Accountability Office has listed the management of government 
contracting as a high-risk area due to weaknesses that were 
discovered in the management and oversight of contractors 
specifically by the Departments of Defense and Energy, as well 
as the National Aeronautics and Space Administration.
    Earlier this year, the Committee included in H.R. 1591, the 
U.S. Troop Readiness, Veterans' Health and Iraq Accountability 
Act, several provisions to address questionable government 
contracting practices. These provisions would minimize sole 
source contracting and cost-reimbursement contracting, require 
public disclosure of the justification for non-competitive 
contracts, and improve disclosure of government contractor 
overcharges.
    The growth of the hidden government is also seen in 
persistent efforts to outsource Federal jobs to contractors. 
The effectiveness of agencies is measured in part by the Office 
of Management and Budget by the number of OMB Circular A-76 
competitive sourcing competitions they carry out for tasks 
currently performed by Federal employees. However, replacing 
Federal workers with contractors raises a host of serious 
questions relating to the true cost of the contractors. Such 
cost includes the loss of skilled, technical experts in the 
Federal workforce who have institutional knowledge and are able 
to monitor effectively contractor performance.
    A-76 competitions that do not take into account all the 
costs of contracting threaten the future viability of the 
Federal workforce. This bill addresses this problem by 
continuing and strengthening language on public-private 
competitions that has been included in recent appropriations 
bills.

                                Projects

    Congress has made significant reforms in the way it reviews 
funding for the Federal government; reforms which the Committee 
takes very seriously as it executes its constitutional 
authority. Earmarking or directed spending of Federal dollars 
does not begin with Congress. It begins with the Executive 
Branch.
    The Administration, in selecting projects, goes through a 
process that is the functional equivalent of earmarking. When 
the Committee reviews the budget request, it goes through a 
process of rigorous review and may alter or modify this list to 
reflect additional priorities.
    The Executive Branch also engages in another practice which 
steers or directs money to specific entities or purposes 
through a process of contracting out various activities and 
services.
    In many important work locations, the number of people 
working for contractors exceeds the number of Federal employees 
in the same building or location. Many of these, in fact, are 
non-competitive or sole-sourced. When added together, the 
Executive Branch steers or directs far greater spending to 
specific projects or corporations than is directed or earmarked 
by Congress. And the practice of non-competitive contracting 
has exploded in the past five years.
    As noted previously, A-76 competitions potentially 
outsource Federal workforce responsibilities and result in the 
loss of technically skilled Federal workers, institutional 
knowledge and effective oversight over worker performance. 
Limited-sourcing and sole-sourcing of contracts is another area 
that has grown rapidly and is a source of concern. In fiscal 
year 2000, 18 percent of the Treasury Department's outside 
contracts were not competitively bid. By fiscal year 2006, that 
number had risen to 28 percent. In fiscal year 2006, the 
Treasury Department awarded more than $1,000,000,000 in 
contracts that were not competitively bid.
    There is also a higher potential for abuse. The General 
Services Administration's (GSA) Office of Inspector General 
(IG) and the House Committee on Oversight and Government Reform 
continue to investigate the award of a no-bid contract by the 
GSA Administrator to a longtime associate. Within two months of 
Senate confirmation, the Administrator signed a contract for 
$20,000 for a 24-page report promoting the GSA's use of 
minority- and women-owned businesses. Issues surrounding this 
contract include the lack of competition in the award process, 
the drafting of the statement of work by the company, and the 
non-disclosure of the Administrator's longstanding business 
relationship with the recipient of the contract. The GSA IG 
stated in testimony that, ``we are talking about the violation 
of key contracting principles--promoting open competition . . . 
and avoiding any appearance of personal favoritism in awarding 
government business--by the leader of the Government's premier 
civilian contracting agency.'' Evidence further suggests that a 
number of actions were taken by the head of this company with 
the expectation of payment by GSA. While no payment was 
ultimately made, nonetheless, this action marks an example of 
potential abuses through the use of sole source contracting.

              Operating Plan and Reprogramming Procedures

    The Committee will continue to evaluate reprogrammings 
proposed by agencies. Although reprogrammings may not change 
either the total amount available in an account or any of the 
purposes for which the appropriation is legally available, they 
represent a significant departure from budget plans presented 
to the Committee in an agency's budget justifications and 
supporting documents, which are the basis of this 
appropriations Act.
    Section 610 of this Act requires that agencies or entities 
funded by the Act notify the Committee and obtain prior 
approval from the Committee for any reprogramming of funds 
that: (1) creates a new program; (2) eliminates a program, 
project, or activity; (3) increases funds or personnel for any 
program, project, or activity for which funds have been denied 
or restricted by the Congress; (4) proposes to use funds 
directed for a specific activity by either the House or Senate 
Committees on Appropriations for a different purpose; (5) 
augments existing programs, projects, or activities in excess 
of $1,000,000 or 10 percent, whichever is less; (6) reduces 
existing programs, projects, or activities by $1,000,000 or 10 
percent, whichever is less; or (7) reorganizes offices, 
programs, or activities.
    Additionally, the Committee expects to be promptly notified 
of all reprogramming actions which involve less than the above-
mentioned amounts if such actions would have the effect of 
significantly changing an agency's funding requirements in 
future years, or if programs or projects specifically cited in 
the Committee's reports are affected by the reprogramming. 
Reprogrammings meeting these criteria must be approved by the 
Committee regardless of the amount proposed to be moved.
    Section 610 also directs the agencies funded by this Act to 
submit operating plans for the Committee's review within 60 
days of the bill's enactment. Each operating plan should 
include: (1) a table for each appropriation with a separate 
column to display the President's budget request, adjustments 
made by Congress, adjustments due to enacted rescissions, if 
appropriate, and the fiscal year enacted level; (2) a 
delineation in the table for each appropriation both by object 
class and program, project, and activity as detailed in the 
budget appendix for the respective appropriation; and (3) an 
identification of items of special congressional interest.

                    Relationship With Budget Offices

    Through the years, the Committee has channeled most of its 
inquiries and requests for information and assistance through 
the budget offices of the various departments, agencies, and 
commissions. The Committee has often pointed to the natural 
affinity and relationship between these organizations and the 
Committee which makes such a relationship workable. The 
Committee reiterates its longstanding position that while the 
Committee reserves the right to call upon all offices in the 
departments, agencies, and commissions, the primary conjunction 
between the Committee and these entities must normally be 
through the budget offices. The Committee appreciates all the 
assistance received from each of the departments, agencies, and 
commissions during the past year. The workload generated by the 
budget process is large and growing, and therefore, a positive, 
responsive relationship between the Committee and the budget 
offices is absolutely essential to the appropriations process.

                      Quality of Budget Documents

    For years, the Committee has directed departments and 
agencies to improve the budget justification document quality 
and presentation by including relevant and specific budget 
information. While the Committee has seen some improvement in a 
few submissions, most justifications continue to be filled with 
references to the Program Assessment Rating Tool (PART), 
drowning in pleonasm, and yet still devoid of useful 
information. The Committee strongly encourages the 
administration to use a meaningful system of evaluation to 
justify proposed program funding levels, as long as the basis 
for the evaluations will also be shared with the Committee. The 
Committee finds little use for a budget justification which 
does not reveal specific details of the measurable indicators 
and standards used to evaluate a program's performance, 
relevance, or adherence to underlying authorization statute. 
Further, the Committee has little patience for secretaries and 
administrators who cannot explain the rationale behind a 
program's funding level other than ``the PART score,'' 
``getting to green,'' or ``this is what OMB provided.'' The 
Committee welcomes the input from the agencies, and is very 
interested in the methodologies used by the administration to 
fund various program priorities.

                           Committee Hearings

    The Committee has conducted extensive hearings on the 
programs and projects provided for in this bill. Pursuant to 
House rules, each of these hearings was open to the public. The 
Committee received testimony from agency heads and other 
officials of the executive branch in areas under the bill's 
jurisdiction, as well as from certain non-government 
organizations that participated in these hearings. In addition, 
the Committee has considered written material submitted for the 
hearing record by private citizens and organizations. The bill 
recommendations for fiscal year 2008 have been developed after 
careful consideration of all the information available to the 
Committee.

                     Program, Project, and Activity

    During fiscal year 2008, for the purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177), as amended, with respect to appropriations contained 
in the accompanying bill, the terms ``program, project, and 
activity'' shall mean any item for which a dollar amount is 
contained in an appropriations Act (including joint resolutions 
providing continuing appropriations) or accompanying reports of 
the House and Senate Committees on Appropriations, or 
accompanying conference reports and joint explanatory 
statements of the committee of conference. This definition 
shall apply to all programs for which new budget (obligational) 
authority is provided.

                  TITLE I--DEPARTMENT OF THE TREASURY


                          Departmental Offices


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2007.......................      $216,348,000
Budget request, fiscal year 2008......................       250,141,000
Recommended in the bill...............................       250,591,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +34,243,000
    Budget request, fiscal year 2008..................          +450,000


    The Departmental Offices' function in the Treasury 
Department is to provide basic support to the Secretary of the 
Treasury, the chief operating executive of the Department. The 
Secretary also has a primary role in formulating and managing 
the domestic and international tax and financial policies of 
the Federal Government. The Secretary's responsibilities funded 
by the Salaries and Expenses appropriation include: 
recommending and implementing United States domestic and 
international economic and tax policy; fiscal policy; governing 
the fiscal operations of the Government; maintaining foreign 
assets control; managing the public debt; managing development 
of financial policy; representing the United States on 
international monetary, trade and investment issues; overseeing 
Treasury Department overseas operations; directing the 
administrative operations of the Treasury Department; and 
providing executive oversight of the bureaus within the 
Treasury Department. This account also includes funding for the 
Office of Professional Responsibility.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $250,591,000 for Departmental 
Offices, Salaries and Expenses, $450,000 above the budget 
request and $34,243,000 above the amounts provided in fiscal 
year 2007. The funding recommendations are made based on 
information included in the budget justification. Language is 
included allowing the Department to transfer up to 2 percent 
between activities upon notification. Transfers may be made in 
excess of 2 percent upon approval of the House and Senate 
Appropriations Committees. Funds are to be allocated as 
follows:




Executive Direction...................................       $10,115,000
General Counsel.......................................         9,700,000
Economic Policies and Programs........................        45,450,000
Financial Policies and Programs.......................        29,069,000
Terrorism and Financial Intelligence..................        56,475,000
Treasury-wide Management Policies and Programs........        19,010,000
Administration Programs...............................        80,772,000


    The Committee includes in its recommendation $258,000 for 
unforeseen emergencies; $5,114,000 for the Treasury-wide 
Financial Statement Audit and Internal Control program, which 
is available until September 30, 2009; $3,000,000 for 
information technology modernization requirements, which is 
available until September 30, 2009; $3,000,000 for secure space 
requirements, which is available until September 30, 2009; 
$2,300,000 available until September 30, 2009, for hiring of 
personnel whose work will require a security clearance 
investigation in order to perform highly classified work; 
$2,100,000 for development and implementation of programs 
within the Office of Critical Infrastructure Protection and 
Compliance Policy, which is available until September 30, 2010; 
and $150,000 for official reception and representation 
expenses. The Committee does not agree to the request to merge 
the Executive Direction and General Counsel budget activities.

                             OPERATING PLAN

    The Committee directs the Department, upon enactment of the 
fiscal year 2008 appropriations Act, to submit an operating 
plan for the fiscal year 2008 resources provided to the 
Department, including all offices and bureaus, not more than 60 
days after enactment. The operating plan must include funding 
and FTE levels for all offices and activities by fiscal year 
2007 actual, fiscal year 2008 request, and fiscal year 2008 
enacted. In addition, the plan must include information on any 
initiative, major procurement, and program at the Department. 
The operating plan should incorporate input from all senior 
level managers of the Department, and once submitted, the final 
plan should be made available to those managers.

                          FINANCIAL EDUCATION

    Within the Financial Policies and Programs budget activity, 
the Committee provides $900,000 for the Department's Office of 
Financial Education, an increase of approximately $200,000 over 
the amount assumed in the President's request. The Committee 
notes that the Office of Financial Education lends primary 
support to the Financial Literacy and Education Commission, 
which is charged with developing a National Strategy for 
Financial Literacy, in conjunction with 20 Federal agencies, to 
improve basic financial literacy and education for all 
Americans. A recent report from the Government Accountability 
Office (GAO) notes that this strategy is largely descriptive 
rather than strategic and lacks certain key characteristics 
that are desirable in a national strategy, including clear and 
specific goals or performance measures by which to benchmark 
progress, an explanation of the resources needed to accomplish 
these goals, or a complete discussion of agency roles, 
responsibilities, and accountability. GAO recommended that the 
Commission (1) incorporate additional elements into the 
national strategy to help measure results and ensure 
accountability, (2) conduct usability tests of and measure 
customer satisfaction with its web site, (3) independently 
review for duplication and evaluate the effectiveness of 
federal activities, and (4) expand upon current efforts to 
cultivate sustainable partnerships with nonprofit and private 
entities. The Committee directs the Department to utilize the 
additional funding above the request for the Office of 
Financial Education to further the office's outreach and 
education activities, with a particular emphasis on elementary 
and high schools, and to help implement GAO's recommendations.

                            SUBPRIME LENDING

    The Committee notes that significant hardship has come upon 
an increased number of low and moderate-income families as a 
result of an increase in mortgage defaults and foreclosures, 
particularly associated with subprime mortgages. The Committee 
notes that last October, financial regulators issued guidance 
for alternative mortgage products, and, in March 2007, a 
proposed statement for subprime lending. The Committee believes 
strongly in the importance of homeownership for low and 
moderate-income persons and encourages the Department, in 
conjunction with the Office of the Comptroller of the Currency, 
the Office of Thrift Supervision, and the Federal Financial 
Institutions Examination Council, to further the goal of 
preventing defaults and foreclosures, while at the same time 
promoting increased homeownership for low and moderate-income 
families and individuals.

           THE OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE

    The Committee recommends $56,475,000 for the Office of 
Terrorism and Financial Intelligence, an increase of $250,000 
above the President's request and $13,018,000 above amounts 
provided in fiscal year 2007. Within the funds for the Office 
of Foreign Assets Control, $250,000 is provided for efforts to 
reduce the backlog of Freedom of Information Act (FOIA) 
requests.

                 CHARITIES TARGETED FOR FREEZE ACTIONS

    While the Committee is supportive of the work of the Office 
of Terrorism and Financial Intelligence, the Committee has 
concerns with regard to the freezing of assets associated with 
charities suspected of having links to terrorist activity. 
Support for terrorist activity is unacceptable, and the 
Department should continue to exercise its authorities to 
disrupt the financing and other support for terrorist activity. 
At the same time, the Committee is concerned about the status 
of funds given to charities by individual donors who believed 
that the funds would be used in good faith and who were unaware 
of any suspected links to terrorism. The Committee encourages 
the Department to work on ways to ensure that the funds of 
these particular donors can be returned to the donors, in the 
event of freeze actions taken against the charities.

   OFFICE OF FOREIGN ASSETS CONTROL (OFAC) FULL-TIME EQUIVALENT STAFF

    The Committee directs the Department to provide, as part of 
its Operating Plan, the number of FTEs devoted to the Cuba 
sanctions program within the Office of Foreign Assets Control, 
as well as the number of FTEs devoted to sanctions programs 
directed against Foreign Terrorist Organizations.

                  SPECIALLY DESIGNATED NATIONALS LIST

    The Committee supports the use of the Specially Designated 
Nationals (SDN) list as a critical tool in the fight against 
terrorism, weapons proliferation, drug trafficking, and other 
offenses. At the same time, however, the Committee is also 
aware of problems that have arisen as a result of Americans 
having names that are similar to the names of individuals on 
the SDN list. In many cases, individuals have found themselves 
denied mortgages, car loans, or other financial services as a 
result of being falsely identified as being on the SDN list. 
The Committee urges the Department to continue to work 
diligently to educate credit bureaus, banks, and other private 
sector entities of the importance of carefully using the 
Specially Designated Nationals list to avoid false 
identifications.

          COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES

    The Committee recommendation assumes that $300,000 of the 
funds provided for Administration Programs and $640,000 of the 
funds provided for Economic Policies and Programs are for 
additional staff in support of the work of the Committee on 
Foreign Investment in the United States (CFIUS), as requested. 
The Committee notes that the CFIUS caseload has grown 
dramatically, with 113 cases filed in 2006 and more expected in 
2007. The Committee expects the Department to continue to 
ensure communication between CFIUS and the Congress and to 
continue providing notification to Congress of completed 
reviews.

                         CURRENCY MANIPULATION

    The Committee appreciates the efforts of the Treasury 
Department in leading the U.S.-China Strategic Economic 
Dialogue which is intended to address issues such as the value 
of Chinese currency, human rights, energy, intellectual 
property rights and other topics. However, the Committee 
remains extremely concerned that China's currency is 
significantly undervalued as compared to the U.S. dollar 
because the Chinese government pegs the yuan to the dollar, 
thereby not allowing market forces to determine the true 
exchange rate between the two currencies. An undervalued 
Chinese currency makes Chinese exports to the U.S. cheaper and 
U.S. exports to China more expensive. This has caused job 
dislocation in several sectors of the economy and has added to 
the growing U.S. trade deficit. While the Committee understands 
that China has taken small steps to reform its currency policy, 
the Committee remains extremely troubled with the slow pace of 
China's currency reforms. The Committee recommendation provides 
an increase of $618,000, as requested, to enhance the 
Department's international economic policy coordination. With 
these additional resources, the Committee expects the 
Department to increase its efforts to work with the Chinese 
government to immediately implement currency reforms.

                               TRAVEL CAP

    The Committee has not included a travel limitation, which 
was $3,000,000 in fiscal years 2006 and 2007. The Committee 
remains concerned about politically motivated travel, but 
understands that continuing to restrict the travel of all 
Treasury offices and bureaus may negatively impact mission 
operations. The Committee will continue to monitor travel and 
re-evaluate this position at the next appropriate time. 
Therefore, the Committee restates the travel report directives 
contained in House Report 108-792 and directs the Department to 
include the purpose of the reported travel in the quarterly 
report. The Committee also continues the direction that the 
Secretary shall ensure that a portion of travel funds are made 
available to General Schedule employees to support the training 
and development of all Departmental Office employees.

        Department-Wide Systems and Capital Investments Programs


                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2007.......................       $30,268,000
Budget request, fiscal year 2008......................        18,710,000
Recommended in the bill...............................        18,710,000
Bill compared with:
    Appropriation, fiscal year 2007...................       -11,558,000
    Budget request, fiscal year 2008..................             - - -


    The Department-wide Systems and Capital Investments 
Programs appropriation funds the modernization of Treasury 
business processes and increases in Department-wide systems 
efficiency through technology investments for systems that 
involve more than one Treasury bureau or Treasury's interface 
with other governmental agencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $18,710,000 for Department-wide 
Systems and Capital Investments Programs, the same as the 
budget request and $11,558,000 below the amounts provided in 
fiscal year 2007. Funds are available until September 30, 2010.

               INFORMATION TECHNOLOGY PROJECT MANAGEMENT

    The Committee remains concerned about the Department's 
track record in executing major information technology 
projects. The Committee directs the Department to provide 
detailed information regarding all information technology 
initiatives and investments, development and implementation 
timelines, and costs and savings in the Department's operating 
plan.

                    INFORMATION SECURITY WEAKNESSES

    The Committee notes that the Treasury Department has made 
progress in moving toward compliance with the requirements of 
the Federal Information Security Management Act (FISMA), 
particularly in the areas of security awareness training, 
specialized information technology training, and systems 
inventories. However, an annual independent evaluation of the 
Department's information security programs and practices found 
deficiencies in non-national security systems that, in the 
aggregate, constitute substantial noncompliance with FISMA and 
require additional improvements to adequately protect the 
information and systems that support Treasury operations. The 
Committee expects the Department to work diligently to 
implement the recommendations of the independent evaluation, 
including improvements to: the Department's security 
certification and accreditation process; security awareness 
efforts and training; plan of action and milestones (POA&M;) 
documents; identification of systems interfaces; security self 
assessments; categorizations of systems; configuration 
management process; and incident response process.

                      Office of Inspector General


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $16,957,000
Budget request, fiscal year 2008......................        18,450,000
Recommended in the bill...............................        18,450,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +1,493,000
    Budget request, fiscal year 2008..................             - - -


    The Office of Inspector General provides agency-wide audit 
and investigative functions to identify and correct operational 
and administrative deficiencies which create conditions for 
existing or potential instances of fraud, waste, and 
mismanagement. The audit function provides program, contract, 
and financial statement audit services. Contract audits provide 
professional advice to agency contracting officials on 
accounting and financial matters relative to negotiation, 
award, administration, repricing, and settlement of contracts. 
Program audits review and evaluate all facets of agency 
operations. Financial statement audits assess whether financial 
statements fairly present the agency's financial condition and 
results of operations, the adequacy of accounting controls, and 
compliance with laws and regulations. The investigative 
function provides for the detection and investigation of 
improper and illegal activities involving programs, personnel, 
and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $18,450,000 for the Office of 
Inspector General, the same as the budget request and 
$1,493,000 above the amounts provided in fiscal year 2007. The 
bill includes $2,000,000 for official travel expenses, $2,500 
for official reception and representation expenses, and up to 
$100,000 for unforeseen emergencies.

           Treasury Inspector General for Tax Administration


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................      $132,861,000
Budget request, fiscal year 2008......................       140,533,000
Recommended in the bill...............................       140,533,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +7,672,000
    Budget request, fiscal year 2008..................             - - -


    The Internal Revenue Service (IRS) Restructuring and Reform 
Act of 1998 established the Office of Treasury Inspector 
General for Tax Administration (TIGTA) and abolished the IRS 
Office of the Chief Inspector. TIGTA conducts audits, 
investigations, and evaluations to assess the operations and 
programs of the IRS and its related entities, the IRS Oversight 
Board, and the Office of Chief Counsel. The purpose of those 
audits and investigations is as follows: (1) to promote the 
economic, efficient, and effective administration of the 
nation's tax laws and to detect and deter fraud and abuse in 
IRS programs and operations; and (2) to recommend actions to 
resolve fraud and other serious problems, abuses, and 
deficiencies in these programs and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $140,533,000 for the Treasury 
Inspector General for Tax Administration, the same as the 
budget request and $7,672,000 above the amounts provided in 
fiscal year 2007.

                Air Transportation Stabilization Program


                    (INCLUDING RESCISSION OF FUNDS)




Appropriation, fiscal year 2007.......................             - - -
Budget request, fiscal year 2008......................       -$3,600,000
Recommended in the bill...............................        -3,600,000
Bill compared with:
    Appropriation, fiscal year 2007...................        -3,600,000
    Budget request, fiscal year 2008..................             - - -


    The Air Transportation Stabilization Board (ATSB) was 
authorized in the Air Transportation Safety and Stabilization 
Act to issue $10,000,000,000 of federal credit instruments to 
air carriers. The statute requires the compensation of air 
carriers ``for losses incurred by the air carriers as a result 
of the terrorist attacks on the United States that occurred on 
September 11, 2001,'' and provides among other criteria, that 
``such agreement is a necessary part of maintaining a safe, 
efficient, and viable commercial aviation system in the United 
States.''

                        COMMITTEE RECOMMENDATION

    The Committee recommendation rescinds $3,600,000 in 
unobligated balances, as proposed in the President's budget. It 
is the Committee's understanding that the Board has met the 
requirements established under Public Law 107-42, has one loan 
remaining, and expects to complete its activities in fiscal 
year 2007.

                  Financial Crimes Enforcement Network


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $73,216,000
Budget request, fiscal year 2008......................        85,844,000
Recommended in the bill...............................        83,344,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +10,128,000
    Budget request, fiscal year 2008..................        -2,500,000


    The Financial Crimes Enforcement Network (FinCEN) is 
responsible for implementing Treasury's anti-money laundering 
regulations through administration of the Bank Secrecy Act 
(BSA), 31 U.S.C. section 5311, et seq. It also serves as a U.S. 
Government source for the systematic collection and analysis of 
information to assist in the investigation of money laundering 
and other financial crimes. FinCEN supports law enforcement 
investigative efforts by Federal, state, local and 
international agencies, and fosters interagency and global 
cooperation against domestic and international financial 
crimes. It also provides U.S. policymakers with strategic 
analyses of domestic and worldwide trends and patterns. It 
works to prevent money laundering through its regulatory and 
outreach programs, including setting policy for and overseeing 
BSA compliance by financial institutions, and by providing BSA 
training for law enforcement, bankers, and bank regulators.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $83,344,000 for the Financial 
Crimes Enforcement Network, $2,500,000 below the budget request 
and $10,128,000 above the amounts provided in fiscal year 2007. 
Of the amounts provided, $8,955,000 is available until 
September 30, 2009, for regulatory support programs, and 
$16,340,000 is available until September 30, 2010, for 
information technology and special analytical initiatives. The 
Committee has not included $2,500,000 in requested funds to 
begin implementation of the cross-border wire transfer 
initiative. The Committee notes that the Department has still 
not made a final determination as to whether to proceed with 
this initiative, and that a planned cost-benefit analysis of 
the initiative has yet to take place.

                           PROJECT MANAGEMENT

    FinCEN has experienced its share of difficulty in managing 
information technology projects. This was especially evident in 
last year's failure associated with the project to upgrade the 
retrieval and sharing component of BSA Direct. After nearly two 
years in development and $15,000,000 spent, FinCEN terminated 
the project contract when significant concerns were raised 
about schedule delays and project management. The Committee has 
included the requested amount of $1,750,000 for improvements to 
FinCEN's project management capability and fully expects FinCEN 
to avoid future project failures.

                      Financial Management Service


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................      $235,381,000
Budget request, fiscal year 2008......................       235,191,000
Recommended in the bill...............................       234,423,000
Bill compared with:
    Appropriation, fiscal year 2007...................          -958,000
    Budget request, fiscal year 2008..................          -768,000


    The Financial Management Service (FMS) is responsible for 
the management of Federal finances and the collection of 
Federal debt. As the Federal Government's central financial 
agent, FMS receives and disburses public monies, maintains 
Government accounts, and reports on the status of the 
Government's finances. FMS is also accountable for developing 
and implementing the most reliable and efficient financial 
methods and systems to operate the Government's cash 
management, credit management, and debt collection programs. 
Pursuant to the Debt Collection Improvement Act of 1996, FMS 
became the primary agency for collecting Federal non-tax debt 
that is due and owed to the Government and coordinating efforts 
to collect debt from those who have defaulted on agreements 
with the Federal Government.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $234,423,000 for the Financial 
Management Service, $768,000 below the budget request and 
$958,000 below the amounts provided in fiscal year 2007. The 
Committee notes that not to exceed 50 percent of any end-of-
year balances of budget authority may remain available in 
fiscal year 2008 under the terms and conditions of the fiscal 
year 2007 enacted bill. The Committee believes, therefore, that 
a reduction to the budget request of $768,000 is appropriate to 
reflect a minimum level of expected end-of-year balances that 
will be available in fiscal year 2008 and will not affect the 
operations of the account. Of the funds provided, the Committee 
recommends $9,220,000 for information systems modernization 
initiatives, which is available until September 30, 2010, and 
$2,500 for official reception and representation expenses.

                Alcohol and Tobacco Tax and Trade Bureau


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................        90,618,000
Budget request, fiscal year 2008......................        93,515,000
Recommended in the bill...............................        93,515,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +2,897,000
    Budget request, fiscal year 2008..................             - - -


    The Alcohol and Tobacco Tax and Trade Bureau (TTB) is 
responsible for the enforcement of laws designed to eliminate 
certain illicit activities and to regulate lawful activities 
relating to distilled spirits, beer, wine and nonbeverage 
alcohol products, and tobacco. TTB focuses on collecting 
revenue; reducing taxpayer burden and improving service while 
preventing diversion; and protecting the public and preventing 
consumer deception in certain regulated commodities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $93,515,000 for the Alcohol and 
Tobacco Tax and Trade Bureau, the same as the budget request 
and $2,897,000 above the amounts provided in fiscal year 2007. 
Within the amount provided, the bill includes up to $6,000 for 
official reception and representation expenses and up to 
$50,000 for cooperative research and development programs.

                           United States Mint


               UNITED STATES MINT PUBLIC ENTERPRISE FUND

    The United States Mint manufactures coins, receives 
deposits of gold and silver bullion, and safeguards the Federal 
Government's holdings of monetary metals. In 1997, Congress 
established the United States Mint Public Enterprise Fund 
(Public Law 104-52), which authorized the Mint to use proceeds 
from the sale of coins to finance the costs of its operations 
and consolidated all existing Mint accounts into a single fund. 
Public Law 104-52 also provided that, in certain situations, 
the levels of capital investments for circulating coins and 
protective services shall factor into the decisions of the 
Congress such that those levels compete with other requirements 
for funding.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a spending level for capital 
investments by the Mint for circulating coinage and protective 
services of $33,200,000, the same as the budget request and 
$6,432,000 above the fiscal year 2007 spending level. The 
following table provides basic information on the revenues, 
costs, and products of the Mint for fiscal years 2006 through 
2008:

----------------------------------------------------------------------------------------------------------------
                                   Circulating coins       Quarters       Numismatic/Bullion      Protection
----------------------------------------------------------------------------------------------------------------
2006 (Actual):
    Number of coins.............  13.1 billion......  3.0 billion.......  24 million........
    Cost of Operations..........  $326 million......  $269 million......  $873 million......  $37 million
    Revenue*....................  $520 million......  $752 million......  $1,052 million....
2007 (Est.):
    Number of coins.............  12.5 billion......  2.7 billion.......  24 million........
    Cost of Operations..........  $454 million......  $414 million......  $1,044 million....  $38 million
    Revenue*....................  $980 million......  $680 million......  $1,050 million....
2008 (Est.):
    Number of coins.............  12.4 billion......  2.7 billion.......  24 million........
    Cost of Operations..........  $408 million......  $410 million......  $1,041 million....  $39 million
    Revenue*....................  $838 million......  $687 million......  $1,050 million....
      Net Revenue (FY 2008)**...  $430 million......  $277 million......  $9 million........  ($39) million
----------------------------------------------------------------------------------------------------------------
*Revenue estimates here are shown as the face value of circulating coins and quarters, and the sales of
  numismatic/bullion coins. In budgetary terms, this corresponds to the total earned revenues plus total other
  financing sources.
**Net Revenue shown here is calculated as the difference between Revenue and Cost of Operations in FY 2008. In
  budgetary terms, this represents circulating coinage seigniorage and numismatic program profit.

                       Bureau of the Public Debt


                     ADMINISTERING THE PUBLIC DEBT




Appropriation, fiscal year 2007.......................      $180,623,000
Budget request, fiscal year 2008......................       182,871,000
Recommended in the bill...............................       182,871,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +2,248,000
    Budget request, fiscal year 2008..................             - - -


    The Bureau of the Public Debt is responsible for the 
conduct of all public debt operations and the promotion of the 
sale of U.S. securities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $182,871,000 for Administering the 
Public Debt, the same as the budget request and $2,248,000 
above the amounts provided in fiscal year 2007. Of this amount, 
the Committee recommends $2,500 for official reception and 
representation expenses, and $2,000,000 for systems 
modernization, which is available until September 30, 2010. 
Language is included that reduces the total amount by no more 
than $10,000,000 as definitive security issue fees and Treasury 
Direct Investor Account Maintenance fees are collected.

   Community Development Financial Institutions Fund Program Account





Appropriation, fiscal year 2007.......................       $54,506,000
Budget request, fiscal year 2008......................        28,557,000
Recommended in the bill...............................       100,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................        45,494,000
    Budget request, fiscal year 2008..................        71,443,000


    The Community Development Financial Institutions (CDFI) 
Fund provides grants, loans, equity investments, and technical 
assistance to new and existing community development financial 
institutions such as community development banks, community 
development credit unions, and housing and microenterprise loan 
funds. Recipients use the funds to support mortgage, small 
business and economic development lending in underserved and 
distressed neighborhoods and to support the availability of 
financial services in these neighborhoods. The Fund is also 
responsible for implementation of the Community Renewal Tax 
Relief Act of 2000.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $100,000,000 for the CDFI Fund 
program, $71,443,000 above the budget request and $45,494,000 
above the amounts provided in fiscal year 2007. Of the funds 
provided, $13,500,000 is for administrative costs of the 
program. The Committee directs that the Bank Enterprise Award 
(BEA) program be funded at not less than $14,000,000.
    The Committee notes that poverty, lack of economic 
opportunity, and lack of low-cost financial services continue 
to be problems across much of the Nation, particularly in many 
Hispanic-American, African-American, and Native American 
communities. The Committee appreciates the ongoing efforts of 
the CDFI Fund to work to remedy the particular problems in 
these communities and strongly encourages the CDFI Fund to 
continue to place a heavy emphasis on these efforts.

                    Bureau of Engraving and Printing

    The Bureau of Engraving and Printing (BEP) designs, 
manufactures, and supplies Federal Reserve notes, various 
public debt instruments, as well as most evidences of a 
financial character issued by the U.S., such as postage and 
internal revenue stamps. The BEP also executes certain 
printings for various territories administered by the U.S., 
particularly postage and revenue stamps.
    The operations of the BEP are financed by a revolving fund 
established in accordance with the provisions of Public Law 81-
656, August 4, 1950 (31 U.S.C. 181), which requires the BEP to 
be reimbursed by customer agencies for the costs of all 
manufacturing products and services performed. The BEP is also 
authorized to assess amounts to acquire capital equipment and 
provide for working capital needs. The anticipated work volume 
is based on estimates of requirements submitted by agencies 
served. The following table summarizes BEP revenue and expense 
data for fiscal years 2006 through 2008:

------------------------------------------------------------------------
                                     FY 2006      FY 2007      FY 2008
           Description            --------------------------------------
                                      Actual     Estimated    Estimated
------------------------------------------------------------------------
Revenue:
    Federal Reserve Notes........     $467,000     $550,000     $596,000
    Postage Stamps...............        3,000        - - -        - - -
    Other Security Products &            7,000        6,000        6,000
     Services....................
Total Revenue....................     $447,000     $556,000     $602,000
Cost of operations...............     $486,000     $556,000     $602,000
Net Revenue (to Treasury)*.......     ($9,000)        - - -        - - -
------------------------------------------------------------------------
*The loss of $9 million in FY 2006 was planned and funded out of working
  capital.

                        Internal Revenue Service


                           TAXPAYER SERVICES




Appropriation, fiscal year 2007.......................    $2,138,238,000
Budget request, fiscal year 2008......................     2,103,089,000
Recommended in the bill...............................     2,155,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +16,762,000
    Budget request, fiscal year 2008..................       +51,911,000


    The Taxpayer Services appropriation provides for taxpayer 
services, including forms and publications; processing tax 
returns and related documents; filing and account services; 
taxpayer advocacy services; and assisting taxpayers to 
understand their tax obligations, correctly file their returns, 
and pay taxes due in a timely manner.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,155,000,000 for Taxpayer 
Services, an increase of $51,911,000 above the amounts provided 
in the President's request, and $16,762,000 above amounts 
provided in fiscal year 2007. Of the funds provided, the 
Committee recommends $8,000,000 for low-income taxpayer clinic 
grants and up to $4,100,000 for the Tax Counseling for the 
Elderly Program. The Committee has also included not less than 
$179,600,000 for operating expenses of the Taxpayer Advocate 
Service, an increase of $9,317,000 above the amount assumed in 
the President's request.
    In addition, the Committee has provided increases over the 
President's request in the following areas: (1) $71,500,000 for 
Pre-filing Services Management, an increase of $6,194,000 above 
the amount assumed in the President's request; (2) $127,500,000 
for Taxpayer Communications and Education, an increase of 
$12,827,000 above the amount assumed in the President's 
request. The Committee directs that this increase be directed 
toward the development and management of educational programs, 
partnerships with stakeholder groups, and the dissemination of 
tax information to taxpayers and the general public through a 
variety of media; (3) $70,000,000 for Media and Publications, 
an increase of $5,253,000 above the amount assumed in the 
President's request; and (4) $165,228,000 for Account 
Management and Assistance--Field Assistance, an increase of 
$18,320,000 above the amount assumed in the President's 
request. The Committee directs that this increase be directed 
toward face-to-face assistance, education, and compliance 
services to taxpayers, including tax return preparation and 
answering tax questions.
    The Committee directs that all of these increases be added 
to the base and included in future-year budget requests.

             CONTINUING IMPORTANCE OF IRS TAXPAYER SERVICES

    The Committee believes these funding increases are 
especially necessary because the IRS has reduced these 
activities significantly in recent years. These services are 
important in helping individuals and businesses to understand 
their tax obligations and to file correct tax returns. While 
the IRS notes that an increasing amount of these services are 
being provided as a result of various volunteer efforts, 
including Volunteer Income Tax Assistance (VITA) sites, Tax 
Counseling for the Elderly (TCE) sites, and others, the 
Committee believes that this should not serve as a 
justification to reduce IRS services in these areas. Volunteer 
services should supplement, not replace, IRS services. The 
Committee notes that the IRS Oversight Board and the IRS 
National Taxpayer Advocate have both stressed the continued 
importance of IRS services related to outreach and education, 
and the IRS National Taxpayer Advocate has additionally 
stressed the importance of maintaining IRS assistance in 
preparing tax returns.
    The Committee directs IRS to strengthen, improve, and 
expand taxpayer service. In recent years, the IRS has made an 
attempt to close 68 Taxpayer Assistance Centers and to reduce 
telephone service operating hours, while at the same time 
eliminating other IRS services such as Telefile. These services 
are important to taxpayers, particularly those with low incomes 
who often lack Internet access. At the same time, taxpayer 
services that seem expensive for the IRS to maintain, such as 
Taxpayer Assistance Centers, may actually pay for themselves by 
helping taxpayers to comply with their tax obligations and pay 
what they owe. According to a survey commissioned by the IRS 
Oversight Board, approximately 41 percent of U.S. taxpayer 
households contacted the IRS at least once within the last two 
years. A reduction in the IRS mission of taxpayer service is 
unacceptable.
    The Committee is appreciative of the combined efforts of 
the IRS, the IRS National Taxpayer Advocate, and the IRS 
Oversight Board in crafting the congressionally-mandated 
Taxpayer Assistance Blueprint. The IRS is directed to provide 
semiannual reports to the Committee, beginning not later than 
60 days after the date of enactment, on the status of the 
implementation of the Taxpayer Assistance Blueprint. The 
Committee further directs that such reports be prepared in 
consultation with the IRS National Taxpayer Advocate and the 
IRS Oversight Board.

         IRS SERVICES FOR LIMITED ENGLISH PROFICIENT TAXPAYERS

    The Committee is concerned about the availability of IRS 
taxpayer services for taxpayers with limited or no proficiency 
in English. In her most recent annual report, the IRS National 
Taxpayer Advocate noted that, although 6 percent of taxpayers 
do not speak English at home, a significant number of IRS 
services, forms, and publications are available only in 
English. While the Committee appreciates the progress the IRS 
has made in recent years, including efforts to implement a 
Spanish-language version of the ``Where's My Refund?'' service, 
the Committee shares the Taxpayer Advocate's assessment that 
more needs to be done, especially for languages other than 
Spanish but also for Spanish-language services. The Committee 
directs IRS to improve and expand upon its efforts at non-
English language versions of IRS forms and services, including 
Free File.

       SCHEDULING APPOINTMENTS AT IRS TAXPAYER ASSISTANCE CENTERS

    The Committee is concerned about the findings of an October 
2006 TIGTA report that concluded that taxpayers who call local 
IRS Taxpayer Assistance Centers (TAC's) are often unable to 
schedule appointments to resolve tax issues. While many 
taxpayers are able to resolve account issues through other 
means, the Committee strongly believes that face-to-face 
services must remain available for taxpayers. The Committee is 
encouraged that IRS has committed to implementing TIGTA's 
recommendations for improving the TAC telephone hotline program 
(the 3709 Line Program) and expects IRS to keep the Committee 
updated on the status of the improvements.

                          USER FEE COLLECTIONS

    The Committee is concerned about the budget assumption of 
$131,000,000 in user fee collections. The budget request 
assumes the various appropriations accounts of IRS will be 
supplemented by the user fee collections, with $94,500,000 of 
the fee collections supplementing the Taxpayer Services 
account. The Committee notes that there is risk in assuming 
these fee collections will materialize as projected. The IRS is 
directed to report to the Committee on a quarterly basis, 
beginning not later than 60 days after the date of enactment of 
this Act, with updated projections on expected user fees 
collections.

                           DISABLED VETERANS

    The Committee appreciates the efforts of the IRS in working 
with the Department of Veterans Affairs (VA) to determine the 
number of disabled military retirees who have been denied back 
tax refunds due to the 3-year statute of limitations. The 
Committee directs IRS to: (1) retain the information it has 
obtained regarding veterans who have been denied back tax 
refunds, and (2) continue to work with the VA to identify 
additional cases arising in tax year 2006 of affected veterans 
who have been denied back tax refunds due to the 3-year statute 
of limitations. The Committee directs IRS to provide an update 
on these efforts to the Committee by no later than 90 days 
following the date of enactment.

                              ENFORCEMENT

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2007.......................    $4,686,478,000
Budget request, fiscal year 2008......................     4,925,498,000
Recommended in the bill...............................     4,925,498,000
Bill compared with:
    Appropriation, fiscal year 2007...................      +239,020,000
    Budget request, fiscal year 2008..................             - - -


    The Enforcement appropriation provides for the examination 
of tax returns, both domestic and international; the 
administrative and judicial settlement of taxpayer appeals of 
examination findings; technical rulings; monitoring employee 
pension plans; determining qualifications of organizations 
seeking tax-exempt status; examining tax returns of exempt 
organizations; enforcing statutes relating to detection and 
investigation of criminal violations of the internal revenue 
laws; identifying underreporting of tax obligations; securing 
unfiled tax returns; and collecting unpaid accounts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $4,925,498,000 for Enforcement. Of 
the funds provided, the Committee recommends $57,252,000 to 
support IRS activities under the Interagency Crime and Drug 
Enforcement program and allows up to $10,000,000 to be 
transferred to Operations Support for the purposes of the 
Interagency Crime and Drug Enforcement program.

                      THE EARNED INCOME TAX CREDIT

    The Committee shares the strong concerns expressed by the 
IRS National Taxpayer Advocate about IRS enforcement efforts 
targeted at Earned Income Tax Credit (EITC) claimants. While 
the Committee believes that fraudulent EITC claims, like other 
fraudulent tax claims, should be denied, the Committee also 
believes that great care must accompany any enforcement efforts 
in the area of EITC claims. Under the IRS Questionable Refund 
Program, it was discovered that thousands of legitimate EITC 
claims were delayed by multiple months. Such delays impose 
tremendous hardships on low-income families and individuals who 
depend on the Earned Income Tax Credit refund for a significant 
portion of annual income. While the Committee appreciates that 
the IRS has moved to place safeguards on its examinations of 
EITC claims, the Committee notes that EITC refund claims still 
comprise 40 percent of all IRS individual examinations. It is 
simply unacceptable for the legitimate EITC refunds of low-
income families and individuals to be delayed. The Committee 
expects IRS to make every effort to ensure that delays do not 
happen.

                           OPERATIONS SUPPORT




Appropriation, fiscal year 2007.......................    $3,544,835,000
Budget request, fiscal year 2008......................     3,769,587,000
Recommended in the bill...............................     3,769,587,000
Bill compared with:
    Appropriation, fiscal year 2007...................      +224,752,000
    Budget request, fiscal year 2008..................             - - -


    The Operations Support appropriation provides for overall 
planning and direction of the IRS, including shared service 
support related to facilities services, rent payments, 
printing, postage, and security; other support functions that 
are considered overhead but essential to the successful 
operation of IRS programs including resources for headquarters 
management activities, including IRS-wide support for strategic 
planning, communications and liaison, finance, human resources, 
EEO and diversity; research and statistics of income; and 
necessary expenses for information systems and 
telecommunication support, including developmental information 
systems and operational information systems.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,769,587,000 for Operations 
Support, the same as the request and $224,752,000 above the 
amounts provided in fiscal year 2007. Of the funds provided, 
not to exceed $1,600,000 is for the IRS Oversight Board, 
$25,000 is for official reception and representation expenses, 
$1,000,000 is available until September 30, 2010, for research, 
and $75,000,000 is available until September 30, 2009, for 
information technology support.

           BUDGETARY TREATMENT OF OPERATIONS SUPPORT ACCOUNT

    The Committee notes that the IRS, in its fiscal year 2008 
budget presentation, has presented its budget request for 
Taxpayer Service and Enforcement in two separate sets of 
numbers. The first set contains the numbers by appropriation 
account. The second set includes higher amounts for both 
Taxpayer Service and Enforcement, by combining each one with 
portions of the Operations Support appropriation. Under this 
second presentation of numbers, Taxpayer Service, for example, 
appears to be proposed for an increase relative to fiscal year 
2007, whereas in the account-by-account listing of numbers, the 
request for Taxpayer Service is proposed to be reduced below 
the fiscal year 2007 amount. The IRS is directed to provide the 
Committee with additional information on how the requested 
funds for Operations Support will be spent. The Committee 
expects future budget justifications to include a more thorough 
explanation of the budgetary treatment of this account, 
including its relationship to service and enforcement.

                    INFORMATION TECHNOLOGY PROJECTS

    The Committee remains concerned with the management of 
information technology (IT) projects. While progress has been 
made with the Business Systems Modernization (BSM) program, the 
IRS must not neglect the non-BSM projects. Mid-filing season 
failure of critical non-BSM systems should not and must not 
happen. The Committee directs the IRS to review all critical 
systems and report to the Committee by October 31, 2007, on any 
system problems or risks that could impact the 2008 filing 
season, including corrective actions.
    In addition, the Committee is troubled by the findings of a 
January 2007 TIGTA report showing that the business cases used 
to manage and fund specific IRS information technology 
investments remain inaccurate and unreliable, resulting in 
potential mismanagement and waste of taxpayer dollars. The 
Committee notes that TIGTA has provided various recommended 
actions to be undertaken by the IRS Chief Information Officer 
(CIO), including improvements to oversight, reviews, access 
controls, and coordination with Treasury's Capital Planning and 
Investment Control office. The Committee is pleased that the 
IRS has agreed with TIGTA's recommendations and plans to 
complete corrective actions for all recommendations by October 
2007. The Committee expects the Commissioner, CIO, and other 
senior IRS leadership to continue to work to ensure the 
reliability of cost and schedule information associated with 
information technology investments.

                        IRS INFORMATION SECURITY

    The Committee notes that, while recent TIGTA and GAO 
evaluations found that the IRS has made some progress toward 
improving information security, there are still areas of 
significant concern. The Committee is particularly troubled by 
the findings of TIGTA's March 23, 2007 report that the IRS has 
lost at least 490 laptop computers over the last 4 years. The 
report noted that ``it is very likely a large number of the 
lost or stolen IRS computers contained . . . unencrypted 
data'', exposing a significant number of taxpayers to potential 
identity theft. The Committee believes that it is absolutely 
essential that the IRS work to prevent taxpayer personal 
information from becoming compromised. The Committee is 
encouraged that the IRS has agreed to implement the 
recommendations of TIGTA's report, including recommendations 
related to incident response procedures; quantification of the 
impact of past incidents; employee awareness and training; 
cable locks; encryption checks; systemic disk encryption; boot 
process settings; encryption of backup data sent to non-IRS 
facilities; and reviews of backup media, access lists, and 
physical security.
    At the same time, however, the Committee is deeply 
disturbed by the findings of a March 30, 2007 GAO report on 
information security at IRS, which notes that ``until IRS fully 
implements an agencywide information security program that 
includes risk assessments, enhanced policies and procedures, 
security plans, training, adequate tests and evaluations, and a 
continuity of operations process for all major systems, the 
financial and sensitive taxpayer information on its systems 
will remain vulnerable.'' The Committee expects IRS to work 
diligently to implement the recommendations of GAO's report as 
quickly as possible.

                     BUSINESS SYSTEMS MODERNIZATION




Appropriation, fiscal year 2007.......................      $212,659,000
Budget request, fiscal year 2008......................       282,090,000
Recommended in the bill...............................       282,090,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +69,431,000
    Budget request, fiscal year 2008..................             - - -


    The Business Systems Modernization appropriation provides 
funding to modernize key business systems of the Internal 
Revenue Service.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $282,090,000 for Business Systems 
Modernization (BSM), the same as the budget request and 
$69,431,000 above the amounts provided in fiscal year 2007. 
Consistent with previous years, the release of the funds, with 
the exception of labor costs, is subject to the approval of a 
GAO-reviewed expenditure plan. The Department is directed to 
notify the Committee, within seven days, if BSM management 
funds are reallocated to the capital asset acquisition program.
    The GAO has noted that IRS has made significant progress in 
implementing GAO's prior recommendations and improving 
modernization management controls and capabilities. However, 
two key projects experienced cost overruns during 2006, and 
critical controls and capabilities related to requirements 
development and management and post-implementation reviews of 
deployed BSM projects have not yet been fully implemented. In 
addition, more work remains to be done to fully develop a long-
term vision and strategy for completing the BSM program, 
including establishing time frames for consolidating and 
retiring legacy systems. Future BSM project releases continue 
to face significant risks and issues that could impact overall 
cost and schedule estimates. The Committee is encouraged that 
IRS recognizes this and has developed mitigation strategies. 
The Committee expects IRS to work diligently to implement GAO's 
recommendations and to immediately report to the Committee any 
delays or cost overruns associated with BSM efforts.

                  INTEGRATED FINANCIAL SYSTEM PROJECT

    The Committee notes that the IRS Oversight Board has 
expressed support for funding and completing upgrades to the 
IRS enterprise-wide Integrated Financial System (IFS). As the 
fiscal year 2008 budget report of the IRS Oversight Board 
notes, ``the IFS upgrade is needed to ensure that the IRS 
remains in compliance with federal accounting and other 
financial management requirements.'' The Committee notes that 
TIGTA has reported that the IRS lacks a comprehensive, 
integrated system that provides accurate, relevant, and timely 
financial and operating data describing the performance 
measures, productivity, and associated costs of IRS programs. 
The Committee directs IRS to report to the Committee, within 60 
days of enactment, on plans for upgrades to the Integrated 
Financial System.

               HEALTH INSURANCE TAX CREDIT ADMINISTRATION




Appropriation, fiscal year 2007.......................       $14,856,000
Budget request, fiscal year 2008......................        15,235,000
Recommended in the bill...............................        15,235,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +379,000
    Budget request, fiscal year 2008..................             - - -


    The Health Insurance Tax Credit Administration 
appropriation provides contractor support to develop and 
administer the advance payment option for the health insurance 
tax credit included in Public Law 107-210, the Trade Act of 
2002.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $15,235,000 for Health Insurance 
Tax Credit Administration, the same as the budget request and 
$379,000 above the amount provided in fiscal year 2007.

          Administrative Provisions--Internal Revenue Service


                     (INCLUDING TRANSFER OF FUNDS)

    Section 101. The Committee continues a provision that 
allows for the transfer of five percent (three percent in the 
case of Enforcement) of any appropriation made available to the 
IRS to any other IRS appropriation, upon the advance approval 
of the Committees on Appropriations.
    Section 102. The Committee continues a provision that 
requires the IRS to maintain a training program in taxpayer 
rights, dealing courteously with taxpayers, and cross-cultural 
relations.
    Section 103. The Committee continues a provision that 
requires the IRS to institute and enforce policies and 
procedures that will safeguard the confidentiality of taxpayer 
information.
    Section 104. The Committee continues a provision that makes 
funds available for improved facilities and increased manpower 
to provide efficient and effective 800 number help line service 
for taxpayers.
    Section 105. The Committee includes a provision directing 
that not less than $6,822,000,000 shall be available for tax 
enforcement and related support activities funding in the 
Enforcement and Operations Support accounts, and that an 
additional $406,000,000 shall be available for tax enforcement 
and related support activities.
    Section 106. The Committee includes a provision limiting to 
$1,000,000 the amount of funds in this or any other Act that 
may be used to enter into, renew, extend, administer, 
implement, enforce, provide oversight of, or make any payment 
related to any qualified tax collection contract (as defined in 
section 6306 of the Internal Revenue Code of 1986). The 
Committee seriously questions the efficacy of this program. 
Since September 2006, the IRS has been utilizing private debt 
collection companies to collect various tax debts, while 
allowing the private companies to keep up to 24 percent of all 
the tax debt they help collect. The Committee strongly believes 
that this giveaway to private debt collectors amounts to a 
waste of taxpayer resources; it is money that should be 
received into the U.S. Treasury. Indeed, the Commissioner of 
Internal Revenue has publicly acknowledged that these cases 
could be pursued less expensively by employees of the IRS. The 
Committee urges the IRS to study the feasibility of retraining 
IRS employees who are losing jobs as a result of the rampdown 
of IRS submission processing centers. These employees could 
perform the same tasks as the private debt collection company 
employees, without the Federal Government having to lose up to 
24 percent of the taxes they collect. The Committee directs IRS 
to report to the Committee within 30 days of enactment on the 
feasibility of retraining IRS employees to handle the cases 
that are currently being assigned to private debt collection 
companies.
    Section 107. The Committee includes a new provision that 
extends, through July 23, 2013, the authority of the Secretary 
of the Treasury to exercise streamlined critical pay authority 
with respect to certain IRS professional positions, as provided 
by the Internal Revenue Service Restructuring and Reform Act of 
1997 (Public Law 105-206).
    Section 108. The Committee includes a new provision that 
extends, through July 23, 2013, the authority of the Secretary 
of the Treasury with respect to certain IRS personnel 
flexibilities relating to recruitment, retention, relocation 
incentives, and performance awards, under the Internal Revenue 
Service Restructuring and Reform Act of 1997 (Public Law 105-
206).
    Section 109. The Committee includes a new provision 
transferring from the Office of Management and Budget to the 
Office of Personnel Management the authority to fix the rate of 
basic pay for IRS positions that have been designated by the 
Secretary of the Treasury under streamlined critical pay 
authority.

         Administrative Provisions--Department of the Treasury

    Section 110. The Committee continues a provision that 
allows the Department of the Treasury to purchase uniforms, 
insurance, and motor vehicles without regard to the general 
purchase price limitations, and enter into contracts with the 
State Department for health and medical services for Treasury 
employees in overseas locations.
    Section 111. The Committee continues a provision that 
authorizes transfers, up to two percent, between ``Departmental 
Offices--Salaries and Expenses'', ``Office of the Inspector 
General'', ``Financial Management Service'', ``Alcohol and 
Tobacco Tax and Trade Bureau'', ``Financial Crimes Enforcement 
Network'', and the ``Bureau of the Public Debt'' appropriations 
under certain circumstances.
    Section 112. The Committee continues a provision that 
authorizes transfer, up to two percent, between the Internal 
Revenue Service and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 113. The Committee continues a provision limiting 
funds for the purchase of law enforcement vehicles unless the 
purchase is consistent with vehicle management principles.
    Section 114. The Committee continues a provision that 
prohibits the Department of the Treasury from undertaking a 
redesign of the one dollar Federal Reserve note.
    Section 115. The Committee continues a provision that 
provides for transfers from and reimbursements to ``Financial 
Management Service, Salaries and Expenses'' for the purposes of 
debt collection.
    Section 116. The Committee continues a provision extending 
the pay demonstration program.
    Section 117. The Committee continues a provision that 
requires Congressional approval for the construction and 
operation of a museum by the United States Mint.
    Section 118. The Committee continues a provision 
prohibiting funds in this Act from being used to merge the Mint 
and the Bureau of Engraving and Printing without the approval 
of the House and Senate committees of jurisdiction.

 TITLE II--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO 
                             THE PRESIDENT

    These funds provide for the compensation of the President 
as well as official expenses of the Executive Office of the 
President, as authorized by title 3, United States Code.

                     Compensation of the President





Appropriation, fiscal year 2007.......................          $450,000
Budget request, fiscal year 2008 \1\..................           450,000
Recommended in the bill...............................           450,000
Bill compared with:
    Appropriation, fiscal year 2007...................             - - -
    Budget request, fiscal year 2008..................            - - -

\1\ Proposed in a consolidated appropriation titled ``The White House''.

    These funds provide for the compensation of the President, 
including an expense allowance as authorized by 3 U.S.C. 102.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $450,000 for 
Compensation of the President, including an expense allowance 
of $50,000. These are the same as amounts appropriated in 
fiscal year 2007 and the same as requested by the President. 
The bill specifies that any unused amount shall revert to the 
Treasury consistent with 31 U.S.C. 1552.

                           White House Office


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $53,616,000
Budget request, fiscal year 2008 \1\..................        53,156,000
Recommended in the bill...............................        53,156,000
Bill compared with:
    Appropriation, fiscal year 2007...................          -460,000
    Budget request, fiscal year 2008..................            - - -

\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The Salaries and Expenses account of the White House Office 
supports staff and administrative services necessary for the 
direct support of the President, including costs for the 
Homeland Security Council.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $53,156,000 
for the White House Office, which is $460,000 less than the 
fiscal year 2007 level and the same as the Administration's 
request. The Committee notes that the White House Office 
account had unobligated balances of budget authority in excess 
of $6,500,000, or more than 10 percent of its appropriation, 
remaining at the end of fiscal years 2005 and 2006. The 
Committee expects to be kept fully informed of the reasons for 
any significant differences between actual and budgeted 
spending.
    This account also includes up to $1,500,000 for the Privacy 
and Civil Liberties Oversight Board. The Committee is concerned 
about the extensive editing made by the Administration to the 
first report to Congress of the Board, the motivation for those 
edits, and how such editing may be detrimental to the 
independence of the Board. The Committee believes that the 
Board must have the authority and independence to thoroughly 
review, assess, and report accurately on privacy and civil 
liberties matters. The Committee strongly urges the 
Administration to respect the Board's mission and to refrain 
from substantive editing of its work.

                 Executive Residence at the White House


                           OPERATING EXPENSES




Appropriation, fiscal year 2007.......................       $12,398,000
Budget request, fiscal year 2008 \1\..................        12,814,000
Recommended in the bill...............................        12,814,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +416,000
    Budget request, fiscal year 2008..................            - - -

\1\ Proposed in a consolidated appropriation titled ``The White House''.

    These funds provide for the care, maintenance, and 
operation of the Executive Residence, including official and 
ceremonial functions of the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $12,814,000 
for the operating expenses of the Executive Residence, an 
increase of $416,000 from the amounts appropriated in fiscal 
year 2007 and the same as the amounts requested by the 
President. The bill includes the same restrictions on 
reimbursable expenses for use of the Executive Residence as 
were enacted in fiscal year 2007.

                   White House Repair and Restoration





Appropriation, fiscal year 2007.......................        $1,683,000
Budget request, fiscal year 2008 \1\..................         1,600,000
Recommended in the bill...............................         1,600,000
Bill compared with:
    Appropriation, fiscal year 2007...................           -83,000
    Budget request, fiscal year 2008..................             - - -

\1\ Proposed in a consolidated appropriation titled ``The White House''.

    To provide for the repair, alteration, and improvement of 
the Executive Residence at the White House; a separate account 
was established in fiscal year 1996 to program and track 
expenditures for capital improvement projects at the Executive 
Residence at the White House.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,600,000 for 
White House Repair and Restoration, a decrease of $83,000 below 
the amount enacted in fiscal year 2007 and the same as the 
amount requested by the President.

                      Council of Economic Advisers


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................        $4,032,000
Budget request, fiscal year 2008 \1\..................         4,118,000
Recommended in the bill...............................         4,118,000
Bill compared with:
    Appropriation, fiscal year 2007...................           +86,000
    Budget request, fiscal year 2008..................             - - -

\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The Council of Economic Advisers analyzes the national 
economy and its various segments, advises the President on 
economic developments, recommends policies for economic growth 
and stability, appraises economic programs and policies of the 
Federal Government, and assists in preparation of the annual 
Economic Report of the President to Congress.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,118,000 for 
the Council of Economic Advisers, an increase of $86,000 from 
the amount enacted in fiscal year 2007 and the same as 
requested by the President.

                      Office of Policy Development


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................        $3,487,000
Budget request, fiscal year 2008 \1\..................         3,482,000
Recommended in the bill...............................         3,482,000
Bill compared with:
    Appropriation, fiscal year 2007...................            -5,000
    Budget request, fiscal year 2008..................             - - -

\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The Office of Policy Development supports the National 
Economic Council and the Domestic Policy Council in carrying 
out their responsibilities to advise and assist the President 
in the formulation, coordination, and implementation of 
economic and domestic policy. The Office of Policy Development 
also provides support for other domestic policy development and 
implementation activities, as directed by the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,482,000 for 
the Office of Policy Development, a decrease of $5,000 from the 
amount enacted in fiscal year 2007 and the same as the request.

                       National Security Council


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................        $8,684,000
Budget request, fiscal year 2008 \1\..................         8,640,000
Recommended in the bill...............................         8,640,000
Bill compared with:
    Appropriation, fiscal year 2007...................           -44,000
    Budget request, fiscal year 2008..................             - - -

\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The National Security Council advises the President on the 
integration of domestic, foreign, and military policies 
relating to national security.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $8,640,000 for 
the National Security Council, a decrease of $44,000 from the 
amount appropriated in fiscal year 2007 and the same as 
requested by the President.

                        Office of Administration


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $88,643,000
Budget request, fiscal year 2008 \1\..................       103,110,000
Recommended in the bill...............................        92,829,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +4,186,000
    Budget request, fiscal year 2008..................       -10,281,000

\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The Office of Administration is responsible for providing 
cost-effective, administrative services to the Executive Office 
of the President. These services, defined by Executive Order 
12028 of 1977, include financial, personnel, library and 
records services, information management systems support, and 
general office services.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $92,829,000 
for the Office of Administration, an increase of $4,186,000 
above the amount appropriated in fiscal year 2007 and a 
decrease of $10,281,000 below the amount requested by the 
President.
    Enterprise services program.--The Committee recommendation 
assumes adoption of certain components of the Enterprise 
Services Program and fully funds the Office of Administration 
as requested except for funds for General Services 
Administration (GSA) rental payments for the Office of 
Management and Budget (OMB) and the Office of National Drug 
Control Policy (ONDCP). The Committee recommends funding for 
OMB rent ($7,528,000) and ONDCP rent ($2,753,000) under their 
respective headings for ``Salaries and Expenses'' and provides 
the same levels of funding as the President's request. The 
Committee has provided all miscellaneous costs in the 
Enterprise Services Program, as requested.
    The Committee recommends funding for all Office of 
Administration activities at the requested level for each 
activity in fiscal year 2008.

                    Office of Management and Budget


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $76,714,000
Budget request, fiscal year 2008......................        70,866,000
Recommended in the bill...............................        78,394,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +1,680,000
    Budget request, fiscal year 2008..................        +7,528,000


    The Office of Management and Budget assists the President 
in the discharge of budgetary, economic, management, and other 
executive responsibilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $78,394,000 
for the Office of Management and Budget (OMB), an increase of 
$1,680,000 above the amount appropriated in fiscal year 2007 
and $7,528,000 above the amount requested by the President.
    The Committee recommends $7,528,000 under this heading for 
rental payments to GSA instead of providing these funds under 
the heading ``Office of Administration''.
    The Committee recommends a limitation of $3,000 for 
reception and representation expenses as requested by the 
President.
    ``E-Government'' initiative.--The Committee notes that it 
continues a government-wide general provision that precludes 
the use of funds for the ``e-Government'' initiative prior to 
consultation with and approval by the Committee on 
Appropriations. The Committee continues to be concerned about 
OMB using this initiative to force its management priorities on 
agencies that would otherwise choose different approaches to 
serving the public and other government agencies that are 
better tailored to meet the needs of their customers and meet 
their statutory requirements. The Committee urges OMB and all 
agencies to work directly with the individual appropriations 
subcommittees in advance of recommending e-Government transfers 
so that approved worthy initiatives can move forward without 
disruption.
    Federal Transit Benefit Program.--The Committee is very 
supportive of the Federal Transit Benefit Program that provides 
a subsidy to Federal employees who commute using public 
transportation. This program helps reduce traffic congestion 
and pollution, while helping Federal employees reduce their 
commuting costs. However, the Committee is extremely concerned 
with the Government Accountability Office's findings that the 
program has ineffective controls, which has resulted in fraud 
and abuse by Federal employees in several agencies. The 
Committee understands that the Office of Management and Budget 
(OMB) has developed guidance for all Federal agencies to 
address fraud and abuse in this program. The Committee 
appreciates OMB's efforts regarding this issue and directs OMB 
to report to the Committee within 180 days of enactment of this 
Act on the implementation of this guidance and its 
effectiveness in reducing fraud and abuse.

                 Office of National Drug Control Policy


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $26,766,000
Budget request, fiscal year 2008......................        23,883,000
Recommended in the bill...............................        26,636,000
Bill compared with:
    Appropriation, fiscal year 2007...................          -130,000
    Budget request, fiscal year 2008..................        +2,753,000


    The Office of National Drug Control Policy Reauthorization 
Act of 2006 charges the Office of National Drug Control Policy, 
established by the Anti-Drug Abuse Act of 1988, with developing 
policies, objectives and priorities for the National Drug 
Control Program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $26,636,000 
for the Office of National Drug Control Policy (ONDCP), a 
decrease of $130,000 from the enacted fiscal year 2007 level 
and an increase of $2,753,000 over the President's request.
    The Committee recommends $2,753,000 under this heading for 
rental payments to GSA instead of providing these funds under 
the heading ``Office of Administration''.
    The Committee recommends funding to support the requested 
level of 123 FTEs.
    The Committee continues to be concerned with 
methamphetamine production, trafficking and abuse. The 
Committee is pleased that ONDCP reports a drop in 
methamphetamine use since 2005, as well as declines in 
methamphetamine superlab and small toxic lab incidents. 
However, according to the National Drug Intelligence Center's 
National Drug Threat Assessment 2007, sharp decreases in 
domestic methamphetamine production have been offset by 
increased production in Mexico for U.S. distribution by Mexican 
drug trafficking organizations. The Committee directs ONDCP to 
continue its efforts to work with various agencies, such as the 
Departments of Justice, State, Homeland Security and Health and 
Human Services, along with State and local governments, to 
develop and implement strategies to reduce the demand for and 
supply of methamphetamine in the U.S.
    The Committee directs the ONDCP to report to the Committee, 
within 90 days of enactment of this Act, on the aerial 
eradication program in Colombia. The report should describe the 
financial and managerial responsibilities for the program, 
including the degree to which the Colombian government is 
participating in these responsibilities. The report should also 
include, for the most recent full year of operations: (1) the 
average cost of the aerial herbicide spray program per hectare 
sprayed, including expenditures for all facets of the spray 
operations; (2) the proportion of the sprayed coca crop that is 
considered to be damaged or destroyed; (3) the proportion of 
the sprayed crop that is considered salvageable for immediate 
or eventual harvest; (4) the estimated number of the growers 
whose crops are sprayed who will replant coca in any location 
within the subsequent six months; and (5) the ratio of the 
cumulative area sprayed to the estimated reduction in the 
amount of land under coca cultivation compared to the previous 
year's estimate, for each department and for the country as a 
whole.
    The Committee directs the ONDCP to update, within 90 days 
of enactment of this Act, the report on the price and purity of 
illicit drugs, which was last issued in November 2004. The 
updated report should include comparable data analyses as was 
included in the previous report, as well as additional data 
analysis as appropriate. The report should include the most 
recent available data from the System to Retrieve Information 
from Drug Evidence (STRIDE) database of the Drug Enforcement 
Administration.

                Counterdrug Technology Assessment Center





Appropriation, fiscal year 2007.......................       $20,000,000
Budget request, fiscal year 2008......................         5,000,000
Recommended in the bill...............................        10,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................       -10,000,000
    Budget request, fiscal year 2008..................        +5,000,000


    Pursuant to title IV of the Office of National Drug Control 
Policy Reauthorization Act of 2006, the Counterdrug Technology 
Assessment Center serves as the central counterdrug research 
and development organization for the United States Government.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $10,000,000 
for the Counterdrug Technology Assessment Center, $10,000,000 
below the fiscal year 2007 enacted level and an increase of 
$5,000,000 over the President's request. Included in the 
appropriation is $5,000,000 for supply and demand reduction 
research, the same as the President's request, and $5,000,000 
for the Technology Transfer Program, which was proposed to be 
terminated in the President's request.

             High Intensity Drug Trafficking Areas Program





Appropriation, fiscal year 2007.......................      $224,730,000
Budget request, fiscal year 2008......................       220,000,000
Recommended in the bill...............................       226,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +1,270,000
    Budget request, fiscal year 2008..................        +6,000,000


    The High Intensity Drug Trafficking Areas (HIDTA) Program 
was established by the Director of ONDCP pursuant to section 
1005 of the Anti-Drug Abuse Act of 1988, and now as 
reauthorized by title III of the Office of National Drug 
Control Policy Act of 2006 to provide assistance to Federal and 
State and local law enforcement entities operating in those 
areas most adversely affected by drug trafficking.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $226,000,000 
for the HIDTA Program, $1,270,000 above the the fiscal year 
2007 level and $6,000,000 above the President's request.
    The HIDTA program serves to enhance and coordinate drug 
control effects among local, State, and Federal law enforcement 
agencies in order to eliminate or reduce drug trafficking, and 
the Committee supports a vigorous HIDTA program. To achieve its 
mission, the HIDTA program must continue to enhance individual 
and national performance and work to develop a system that 
enhances the synchronization of drug control efforts.
    The Committee includes language requiring that HIDTAs 
existing in fiscal year 2008 receive funding at least equal to 
the fiscal year 2007 initial allocation level.
    The Committee recommendation specifies that not less than 
$2,100,000 shall be used for auditing services and related 
activities. The Committee understands that within this amount, 
ONDCP plans to use $300,000 to $400,000 for the Performance 
Management Process (PMP) data collection system, which is in 
the final stages of full implementation. ONDCP is directed to 
include PMP in the spending plan required under section 202 of 
this Act.
    The Committee is concerned about the current direction and 
management of the Lake County HIDTA, and it believes that a 
change in management is needed to ensure the HIDTA's ability to 
meet its program goals. The Committee encourages the ONDCP to 
appoint a highly qualified Federal official to chair the 
Executive Board of the Lake County HIDTA for fiscal year 2008 
through fiscal year 2011.
    The Committee is also concerned that the Appalachian and 
Ohio HIDTAs have not received sufficient funding in the past.

                  Other Federal Drug Control Programs





Appropriation, fiscal year 2007.......................      $192,951,000
Budget request, fiscal year 2008......................       224,485,000
Recommended in the bill...............................       197,800,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +4,849,000
    Budget request, fiscal year 2008..................       -26,685,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $197,800,000 
for Other Federal Drug Control Programs, an increase of 
$4,849,000 above the enacted fiscal year 2007 level and 
$26,685,000 below the President's request.
    The Committee recommends funding for the following programs 
for fiscal year 2008:

Drug Free Communities...................................     $90,000,000
Training and technical assistance for drug court 
    professionals.......................................       1,000,000
Model Acts..............................................       1,000,000
Demonstration programs for chronic hard drug users under 
    community supervision...............................       1,000,000
National Youth Anti-Drug Media Campaign.................      93,000,000
United States Anti-Doping Agency........................       9,600,000
World Anti-Doping Agency Dues...........................       1,700,000
Performance Measures Development........................         500,000

    The Committee is concerned about the effectiveness of the 
National Youth Anti-Drug Media Campaign. According to the 
results of a study commissioned by ONDCP and supported by a 
Government Accountability Office (GAO) review, there is no 
clear evidence that the campaign has resulted in a reduction in 
drug use among youth. While the campaign has received praise 
for the quality of its advertisements and has won a number of 
awards, it is much more important that the campaign is actually 
effective in changing the behavior of youth who are susceptible 
to drug use, as well as increasing parental monitoring 
behavior. The study and the GAO report raise serious questions 
on those points. While ONDCP has made changes to the media 
campaign since the time of the study, such as the launch of 
``Above the Influence'', the Committee cannot justify granting 
over a 30 percent increase in funding for the campaign as 
requested in the President's fiscal year 2008 budget when these 
questions remain. The Committee recommendation reflects a 
$6,000,000 reduction below the fiscal year 2007 enacted level. 
The Committee directs ONDCP to report to the Committee within 
90 days of enactment of this Act with recommendations on the 
development of improved and meaningful measurements of the 
effectiveness of the media campaign, including measurements 
that would indicate how the campaign influences youth and 
parent behavior.
    The Committee directs ONDCP to maintain funding for non-
advertising services for the Media Campaign at no less than the 
fiscal year 2007 amount and to ensure that these activities 
continue to include special initiatives designed to reach 
Hispanic audiences and engage private sector participation in 
the program.
    The Committee continues to support efforts to demonstrate 
the harmful consequences of using performance-enhancing drugs. 
The Committee is encouraged that representatives of major 
professional sports leagues, the U.S. Olympic Committee, and 
Federal agencies are increasing their collaboration on this 
issue. These organizations must continue to strengthen their 
commitment to stop performance-enhancing drug use by athletes, 
as well as to educate youth on the dangers of such drugs. 
Professional sports organizations must work closely with U.S. 
Anti-doping Administration (USADA) and other organizations to 
educate high school, middle school and grade school children on 
the dangers of performance-enhancing drugs.

                          Unanticipated Needs





Appropriation, fiscal year 2007.......................          $990,000
Budget request, fiscal year 2008......................         1,000,000
Recommended in the bill...............................         1,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................           +10,000
    Budget request, fiscal year 2008..................             - - -


    These funds enable the President to meet unanticipated 
emergencies in support of the national interest, security, or 
defense.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,000,000 for unanticipated 
needs, an increase $10,000 above the enacted fiscal year 2007 
level and the same as the President's request. Expenditures 
from this account may be authorized by the President.

 Special Assistance to the President and the Official Residence of the 
                             Vice President


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................        $4,432,000
Budget request, fiscal year 2008......................         4,432,000
Recommended in the bill...............................         4,432,000
Bill compared with:
    Appropriation, fiscal year 2007...................             - - -
    Budget request, fiscal year 2008..................             - - -


    These funds support the official duties and functions of 
the Office of the Vice President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,432,000 for 
the Office of the Vice President, the same as fiscal year 2007 
level and the amount requested by the President.

                           Operating Expenses


                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2007.......................          $322,000
Budget request, fiscal year 2008......................           320,000
Recommended in the bill...............................           320,000
Bill compared with:
    Appropriation, fiscal year 2007...................            -2,000
    Budget request, fiscal year 2008..................             - - -


    These funds support the care and operation of the Vice 
President's residence and specifically support equipment, 
furnishings, dining facilities, and services required to 
perform and discharge the Vice President's official duties, 
functions and obligations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $320,000 for 
the Operating Expenses of the Vice President's residence, a 
decrease of $2,000 below the amount enacted in fiscal year 2007 
and the same as requested by the President.

Administrative Provisions--Executive Office of the President and Funds 
                     Appropriated to the President

    Section 201. The Committee continues language to permit the 
transfer of not to exceed 10 percent of funds from certain 
offices within the Executive Office of the President.
    Section 202. The Committee includes a provision requiring a 
financial plan by the Director of the ONDCP prior to the 
obligation of funds in fiscal year 2008.

                        TITLE III--THE JUDICIARY

    The funds recommended by the Committee in title III of the 
accompanying bill are for the operation and maintenance of 
United States Courts and include the salaries of judges, 
magistrates, probation and pretrial services officers, and 
supporting personnel and other expenses of the Federal 
Judiciary.
    In addition to direct appropriations, the Judiciary 
collects fees and has various carryover authorities. The 
Judiciary uses these non-appropriated funds to offset its 
direct appropriation requirements. Consistent with prior year 
practices, the Committee expects the Judiciary to submit a 
financial plan, allocating all sources of available funds 
including appropriations, fee collections, and carryover 
balances. The Judiciary should consider this financial plan to 
be the baseline for determining if reprogramming notification 
is required. The Committee expects the plan to be submitted 
within 90 days after enactment of this Act.
    The Committee encourages the Judiciary to explore ways to 
increase outreach to minority law students with the goal of 
increasing the number of minorities in clerkship positions.

                   Supreme Court of the United States


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $62,576,000
Budget request, fiscal year 2008......................        66,526,000
Recommended in the bill...............................        66,526,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +3,950,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $66,526,000 
for fiscal year 2008 for the salaries and expenses of personnel 
and the cost of operating the Supreme Court, excluding the care 
of the building and grounds. The recommendation is $3,950,000 
above the fiscal year 2007 level and is the same as the request 
for this account. The recommendation provides inflationary and 
other standard adjustments and supports additional five FTE.
    For the third year, the Committee has included bill 
language making $2,000,000 available until expended for the 
purpose of making information technology investments. The 
Committee directs the Supreme Court to provide an annual 
report, to be included in its budget justification materials, 
showing information technology carry-over balances and 
describing each expenditure made in the previous fiscal year 
and planned expenditures in the budget year.

                    Care of the Building and Grounds





Appropriation, fiscal year 2007.......................       $11,427,000
Budget request, fiscal year 2008......................        12,201,000
Recommended in the bill...............................        12,201,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +774,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $12,201,000 
for fiscal year 2008 for personnel and other services relating 
to the Supreme Court building and grounds, which is supervised 
by the Architect of the Capitol. The recommendation is the same 
as the request and $774,000 above the fiscal year 2007 level. 
The Committee expects to be informed of any changes to the 
scope and projected completion date of the original building 
modernization project. Language in the bill allows funds to 
remain available until expended.

         United States Court of Appeals for the Federal Circuit


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $25,311,000
Budget request, fiscal year 2008......................        28,538,000
Recommended in the bill...............................        27,976,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +2,665,000
    Budget request, fiscal year 2008..................          -562,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $27,976,000 
for fiscal year 2008 for the salaries and expenses of the 
United States Court of Appeals for the Federal Circuit. The 
recommendation is $2,665,000 above the fiscal year 2007 
appropriation and $562,000 below the request.

               United States Court of International Trade


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $15,825,000
Budget request, fiscal year 2008......................        16,727,000
Recommended in the bill...............................        16,544,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +719,000
    Budget request, fiscal year 2008..................          -183,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $16,544,000 
for fiscal year 2008 for the salaries and expenses of the 
United States Court of International Trade. The Committee 
recommendation is $183,000 below the budget request and 
$719,000 above the fiscal year 2007 level. The recommendation 
provides inflationary and other standard adjustments.

    Courts of Appeals, District Courts, and Other Judicial Services


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................    $4,476,569,000
Budget request, fiscal year 2008......................     4,854,455,000
Recommended in the bill...............................     4,660,590,000
Bill compared with:
    Appropriation, fiscal year 2007...................      +184,021,000
    Budget request, fiscal year 2008..................      -193,865,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,660,590,000 
for the operations of the regional courts of appeals, district 
courts, bankruptcy courts, the Court of Federal Claims, and 
probation and pretrial services offices. The recommendation is 
$184,021,000 above the fiscal year 2007 appropriation and 
$193,865,000 below the request. The recommendation provides 
inflationary and other standard adjustments.
    The Committee understands that the Judiciary's staffing, 
operations and maintenance, and information technology 
resources are allocated to the courts according to formulas 
that are approved by the Judicial Conference and equitably 
distribute resources based on the workload of each district. 
The Committee believes this is the optimal method of making 
such allocations and expects the Judiciary to continue to 
allocate its resources using this system. The Committee also 
expects the Administrative Office to periodically update the 
formulas to ensure their accuracy.

                 VACCINE INJURY COMPENSATION TRUST FUND




Appropriation, fiscal year 2007.......................        $3,952,000
Budget request, fiscal year 2008......................         4,099,000
Recommended in the bill...............................         4,099,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +147,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends a reimbursement of $4,099,000 for 
fiscal year 2008 from the Special Fund to cover expenses of the 
Claims Court associated with processing cases under the 
National Childhood Vaccine Injury Act of 1986. This amount is 
$147,000 above the amount available in fiscal year 2007 and 
equal to the request.

                           DEFENDER SERVICES




Appropriation, fiscal year 2007.......................      $776,283,000
Budget request, fiscal year 2008......................       859,834,000
Recommended in the bill...............................       830,499,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +54,216,000
    Budget request, fiscal year 2008..................       -29,335,000


                        COMMITTEE RECOMMENDATION

    This account provides funding for the operation of the 
Federal Public Defender and Community Defender organizations 
and for compensation and reimbursement of expenses of panel 
attorneys appointed pursuant to the Criminal Justice Act (CJA) 
for representation in criminal cases.
    The Committee recommends an appropriation of $830,499,000 
for fiscal year 2008. The recommendation is $54,216,000 above 
the fiscal year 2007 level and $29,335,000 below the request. 
The recommendation provides inflationary and other standard 
adjustments. The recommendation also includes increases for the 
expected number of representations for fiscal year 2008 and for 
the rate of compensation of panel attorneys from $94 to $100 
per hour.

                    FEES OF JURORS AND COMMISSIONERS




Appropriation, fiscal year 2007.......................       $60,945,000
Budget request, fiscal year 2008......................        62,350,000
Recommended in the bill...............................        62,350,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +1,405,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $62,350,000 
for payments to jurors, which is $1,405,000 above the fiscal 
year 2007 level and the same as the request.

                             COURT SECURITY




Appropriation, fiscal year 2007.......................      $378,663,000
Budget request, fiscal year 2008......................       421,789,000
Recommended in the bill...............................       396,476,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +17,813,000
    Budget request, fiscal year 2008..................       -25,313,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $396,476,000 
for Court Security in fiscal year 2008 to provide for necessary 
expenses of security and protective services in courtrooms and 
adjacent areas. This is an increase of $17,813,000 above the 
fiscal year 2007 level and $25,313,000 below the request.
    The recommendation provides for inflationary increases, 52 
additional court security officers, as well as court security 
officers and screening equipment at Probation and Pretrial 
Services Offices in leased facilities.
    Bill language is included allowing up to $15,000,000 to 
remain available until expended.
    The Committee wishes to express concern with the quality of 
service the Judiciary is receiving from the Federal Protective 
Service, which is reimbursed for security services. The 
Committee encourages the Judiciary to continue to explore 
options with other Federal law enforcement agencies that might 
be able to provide these security services.

           Administrative Office of the United States Courts


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $72,377,000
Budget request, fiscal year 2008......................        78,536,000
Recommended in the bill...............................        75,667,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +3,290,000
    Budget request, fiscal year 2008..................        -2,869,000


    The Administrative Office of the United States Courts (AO) 
provides administrative and management support to the United 
States Courts, including the probation and bankruptcy systems. 
It also supports the Judicial Conference of the United States 
in determining Federal Judiciary policies, in developing 
methods to allow the courts to conduct business efficiently and 
economically, and in enhancing the use of information 
technology in the courts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $75,667,000 
for the salaries and expenses of the AO, which is $3,290,000 
above the fiscal year 2007 level and $2,869,000 below the 
request.

                        Federal Judicial Center


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $22,874,000
Budget request, fiscal year 2008......................        24,835,000
Recommended in the bill...............................        23,994,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +1,120,000
    Budget request, fiscal year 2008..................          -841,000


    The Center improves the management of Federal Judicial 
dockets and court administration through education for judges 
and staff, and research, evaluation, and planning assistance 
for the courts and the Judicial Conference.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $23,994,000 
for the salaries and expenses of the Federal Judicial Center 
for fiscal year 2008, which is $1,120,000 above the fiscal year 
2007 level and $841,000 below the request.

                       Judicial Retirement Funds


                    PAYMENT TO JUDICIARY TRUST FUNDS




Appropriation, fiscal year 2007.......................       $58,300,000
Budget request, fiscal year 2008......................        65,400,000
Recommended in the bill...............................        65,400,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +7,100,000
    Budget request, fiscal year 2008..................             - - -


    These funds cover the estimated annuity payments to be made 
to retired bankruptcy judges, magistrate judges, Claims Court 
judges, and spouses and dependent children of deceased judicial 
officers.

                        COMMITTEE RECOMMENDATION

    The Committee provides $64,500,000 for payments to the 
Judicial Officers' Retirement Fund, the Judicial Survivors' 
Annuities Fund, and the Claims Court Judges Retirement Fund for 
fiscal year 2008. This amount is the same as the budget request 
and $7,100,000 above the fiscal year 2007 level. These payments 
are considered mandatory for budget scorekeeping purposes.

                  United States Sentencing Commission


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $14,601,000
Budget request, fiscal year 2008......................        16,191,000
Recommended in the bill...............................        15,477,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +876,000
    Budget request, fiscal year 2008..................          -714,000


    The purpose of the Commission is to establish, review, and 
revise sentencing guidelines, policies, and practices for the 
Federal criminal justice system. The Commission is also 
required to monitor the operation of the guidelines and to 
identify and report necessary changes to the Congress.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $15,477,000 for the salaries and 
expenses of the United States Sentencing Commission for fiscal 
year 2008, which is $876,000 above the fiscal year 2007 
appropriation and $714,000 below the request.

                Administrative Provisions--The Judiciary

    Section 301. The Committee continues language to permit 
funds in the bill for salaries and expenses for the Judiciary 
to be available for employment of experts and consultant 
services as authorized by 5 U.S.C. 3109.
    Section 302. The Committee continues language that permits 
up to 5 percent of any appropriation made available for fiscal 
year 2008 to be transferred between Judiciary appropriations 
accounts provided that no appropriation shall be decreased by 
more than 5 percent or increased by more than 10 percent by any 
such transfer except in certain circumstances. In addition, the 
language provides that any such transfer shall be treated as a 
reprogramming of funds under sections 605 and 610 of the 
accompanying bill and shall not be available for obligation or 
expenditure except in compliance with the procedures set forth 
in that section.
    Section 303. The Committee continues language authorizing 
not to exceed $11,000 to be used for official reception and 
representation expenses incurred by the Judicial Conference of 
the United States.
    Section 304. The Committee continues language requiring a 
financial plan for the Judiciary within 90 days of enactment of 
this Act.
    Section 305. The Committee includes language extending a 
judgeship for Northern Ohio.

                     TITLE IV--DISTRICT OF COLUMBIA


                            Federal Payments


              Federal Payment for Resident Tuition Support





Appropriation, fiscal year 2007.......................       $32,868,000
Budget request, fiscal year 2008......................        35,100,000
Recommended in the bill...............................        35,100,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +2,232,000
    Budget request, fiscal year 2008..................             - - -


    The Resident Tuition Support program was created by the 
District of Columbia College Access Act of 1999 to provide 
District college-bound students the opportunity to expand their 
higher education choices. The program receives its funding 
through a Federal appropriation which is deposited into a 
dedicated account under the control of the District of Columbia 
Chief Financial Officer. These funds are used on behalf of 
eligible District of Columbia residents to pay an amount based 
upon the difference between in-State and out-of-State tuition 
at eligible public and private institutions of higher 
education.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $35,100,000 
for the resident tuition support program, $2,232,000 above the 
fiscal year 2007 appropriation and the same as the budget 
request. Of the amounts made available, not more than 
$1,200,000 may be used for administrative expenses.

       Federal Payment for Emergency Planning and Security Costs





Appropriation, fiscal year 2007.......................        $8,533,000
Budget request, fiscal year 2008......................         3,000,000
Recommended in the bill...............................         3,352,000
Bill compared with:
    Appropriation, fiscal year 2007...................        -5,181,000
    Budget request, fiscal year 2008..................          +352,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $3,352,000 
for emergency planning and security costs, $5,181,000 below the 
fiscal year 2007 appropriation and $352,000 above the budget 
request. These funds are for emergency planning and security 
costs related to the presence of the Federal government in the 
District of Columbia and surrounding jurisdictions.
    The Committee acknowledges the unique role of the District 
of Columbia National Guard in addressing emergencies that may 
occur as a result of the presence of the Federal government and 
includes funding of $352,000 for the District of Columbia 
National Guard to pay the costs of a tuition assistance program 
for guard members who are non-District residents.
    The Committee recognizes that emergency planning and 
security costs may increase for fiscal year 2009 due to the 
Presidential Inauguration in the District of Columbia.

           Federal Payment to the District of Columbia Courts





Appropriation, fiscal year 2007.......................      $216,723,000
Budget request, fiscal year 2008......................       213,861,000
Recommended in the bill...............................       256,395,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +39,672,000
    Budget request, fiscal year 2008..................       +42,534,000


    The Committee recommends a Federal payment of $256,395,000 
for operation of the District of Columbia Courts, $39,672,000 
above the fiscal year 2007 appropriation and $42,534,000 above 
the budget request. This amount includes $10,800,000 for the 
Court of Appeals, $100,543,000 for the Superior Court, 
$54,052,000 for the Court System, and $91,000,000 for capital 
improvements to courthouse facilities. This level of funding 
for capital improvements is meant to provide a one-time 
increase to fulfill some of the Court's highest priority needs.
    The Committee continues to be concerned over substandard 
working conditions for the U.S. Marshals Service at the 
District of Columbia Superior Court Cell Block at the Moultrie 
Courthouse. The Committee directs the District of Columbia 
Courts to report to the Committee, within 60 days of enactment 
of this Act, on the plan to upgrade the conditions to an 
acceptable level. The Committee strongly encourages the 
District of Columbia Courts to incorporate cell block upgrades 
as a priority among the other capital requirements that are 
funded through this recommendation.

          Defender Services in the District of Columbia Courts





Appropriation, fiscal year 2007.......................       $43,475,000
Budget request, fiscal year 2008......................        43,475,000
Recommended in the bill...............................        52,475,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +9,000,000
    Budget request, fiscal year 2008..................        +9,000,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends $52,475,000 for Defender Services 
in District of Columbia Courts, $9,000,000 above the fiscal 
year 2007 appropriation and $9,000,000 above the budget 
request.
    The recommendation includes a pay adjustment for defenders 
from $65 per hour to $90 per hour to ensure the Courts can 
continue to attract qualified attorneys.

 Federal Payment to the Court Services and Offender Supervision Agency 
                      for the District of Columbia





Appropriation, fiscal year 2007.......................      $179,603,000
Budget request, fiscal year 2008......................       190,343,000
Recommended in the bill...............................       190,343,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +10,740,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $190,343,000 
for the Court Services and Offender Supervision Agency (CSOSA), 
$10,740,000 above the fiscal year 2007 appropriation and the 
same as the budget request. Of the amounts provided, 
$140,499,000 is for the Community Supervision Program and 
$49,849,000 is for the Pretrial Services Agency, and not to 
exceed a total of $560,000 is for information technology 
infrastructure enhancement acquisitions. The increase in funds 
over the prior year is due to (1) the increased capacity and 
operations at Karrick Hall (the District's Re-entry and 
Sanctions Center) and (2) an effort to reduce the ratio of 
defendants to pretrial services officers from 115:1 to 
approximately 75:1.

  Federal Payment to the Public Defender Service for the District of 
                                Columbia





Appropriation, fiscal year 2007.......................       $31,103,000
Budget request, fiscal year 2008......................        32,710,000
Recommended in the bill...............................        32,710,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +1,607,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $32,710,000 
for the Public Defender Service for the District of Columbia 
(PDSDC), $1,607,000 above the fiscal year 2007 appropriation 
and the same as the budget request. In prior years, PDSDC was 
funded as a part of the Court Services and Offender Supervision 
Agency (CSOSA).

 Federal Payment to the District of Columbia Water and Sewer Authority





Appropriation, fiscal year 2007.......................        $6,930,000
Budget request, fiscal year 2008......................        12,000,000
Recommended in the bill...............................        12,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +5,070,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $12,000,000 
to the District of Columbia Water and Sewer Authority (WASA), 
$5,070,000 above the fiscal year 2007 appropriation and the 
same as the budget request. These funds are to continue 
implementation of the Combined Sewer Overflow Long-Term Plan. 
Funds will be matched with by a $7,000,000 payment from WASA 
and a $5,000,000 payment from the District of Columbia.

      Federal Payment to the Criminal Justice Coordinating Council





Appropriation, fiscal year 2007.......................         1,287,000
Budget request, fiscal year 2008......................         1,300,000
Recommended in the bill...............................         1,300,000
Bill compared with:
    Appropriation, fiscal year 2007...................           +13,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $1,300,000 to 
the Criminal Justice Coordinating Council (CJCC), $13,000 above 
the fiscal year 2007 appropriation and the same as the budget 
request. These funds support initiatives related to the 
coordination of Federal and local criminal justice resources in 
the District of Columbia. Similar to the prior year, the 
Committee directs the CJCC to submit annual performance 
measures in an annual report.

  Federal Payment to the Office of the Chief Financial Officer of the 
                          District of Columbia





Appropriation, fiscal year 2007.......................       $20,000,000
Budget request, fiscal year 2008......................             - - -
Recommended in the bill...............................         6,148,000
Bill compared with:
    Appropriation, fiscal year 2007...................       -13,852,000
    Budget request, fiscal year 2008..................        +6,148,000


    The Committee recommends a Federal payment of $6,148,000 
for the Chief Financial Officer of the District of Columbia 
$13,852,000 below fiscal year 2007 and $6,148,000 above the 
request. These funds are for education, environmental, social 
service and economic development initiatives in the District of 
Columbia. The Committee directs each grantee to submit a 
comprehensive budget and a report on the activities to be 
carried out with the funds no later than March 15, 2008. The 
District CFO will submit a comprehensive report no later than 
April 30, 2008, to the Committee on Appropriations highlighting 
which grantees did not comply with the reporting requirements. 
The Committee requires that any funds to these grantees must be 
spent primarily in the District of Columbia to benefit District 
residents.

Excel Institute.........................................        $250,000
Earth Conservation Corps................................         231,000
STEEED Youth program....................................         150,000
Catalyst--Eastgate HOPE VI project......................          81,000
ARISE Foundation........................................         231,000
Eastern Market..........................................         131,000
Howard University College of Dentistry..................          40,000
Center for Inspired Teaching............................          40,000
Sitar Center for the Arts...............................          10,000
Menzfit.................................................          10,000
Historic Congressional Cemetery.........................         500,000
Barracks Row............................................         500,000
Southeastern University.................................         250,000
International Youth Service and Development Corps.......         500,000
Bright Beginnings Inc...................................         100,000
Everybody Wins!.........................................          50,000

                 Federal Payment for School Improvement





Appropriation, fiscal year 2007.......................       $39,600,000
Budget request, fiscal year 2008......................        40,800,000
Recommended in the bill...............................        40,800,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +1,200,000
    Budget request, fiscal year 2008..................             - - -


    The Committee recommends a Federal payment of $40,800,000 
for school improvement, $1,200,000 above fiscal year 2007 and 
the same as the budget request. These funds are allocated as 
follows: $13,000,000 to improve public school education in the 
District of Columbia, $13,000,000 to expand quality charter 
schools, and $14,800,000 to the Secretary of Education for 
opportunity scholarships for low-income children in the 
District of Columbia, of which $1,800,000 is for administrative 
expenses.
    The Committee acknowledges the recent events regarding 
management of the schools and looks forward to new direction 
for the DCPS under Mayoral supervision. The Committee 
encourages the Mayor and associated staff to consider the 
structure and composition of the payments for school 
improvement into the framework of the DCPS and the Mayor's 
policy agenda.

          Federal Payment for Consolidated Laboratory Facility





Appropriation, fiscal year 2007.......................        $4,950,000
Budget request, fiscal year 2008......................        10,000,000
Recommended in the bill...............................        10,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +5,050,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends a federal payment of $10,000,000 
for a consolidated bioterrorism and forensics lab, $5,050,000 
above fiscal year 2007 and the same as the budget request. The 
Committee requests an updated spending plan from the District 
of Columbia on the capital needs of this project.
    The Committee encourages the District to explore all 
options for Federal funding that may be available to construct 
and operate this laboratory.

        Federal Payment for Central Library and Branch Locations





Appropriation, fiscal year 2007.......................             - - -
Budget request, fiscal year 2008......................       $10,000,000
Recommended in the bill...............................        10,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +10,000,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends a payment of $10,000,000, as 
requested, for the District of Columbia's capital program for 
modernization of neighborhood libraries.

    Federal Payment to Reimburse the Federal Bureau of Investigation





Appropriation, fiscal year 2007.......................             - - -
Budget request, fiscal year 2008......................        $5,000,000
Recommended in the bill...............................         4,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +4,000,000
    Budget request, fiscal year 2008..................        -1,000,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends a payment of $4,000,000 for the 
District of Columbia to reimburse the Federal Bureau of 
Investigation (FBI) to perform forensics laboratory services 
for cases awaiting analysis. The Committee expects that this 
funding will be used to expand the resources including 
personnel, associated with the examination and DNA analysis for 
the District of Columbia cold case backlog. While the Committee 
would like to support the advancement of work on cases 
involving crimes committed in the District of Columbia, there 
is some concern that the District will not actually receive 
additional services for this payment to the FBI. The Committee 
requests that the District report back 60 days after the end of 
fiscal year 2008 on the forensics work that was performed on 
behalf of the District, which would not otherwise have been 
completed.

                       District of Columbia Funds

    The Committee recommends a total of $9,777,362,000 for the 
operating expenses of the District of Columbia as contained in 
the fiscal year 2008 proposed budget and financial plan 
submitted to the Congress by the Government of the District of 
Columbia in June 2007. Of the total, $6,022,444,000 is from 
local funds, $2,015,853,000 is from Federal grant funds, 
$1,730,503,000 is from other funds, $8,562,000 is from private 
funds, and $116,552,000 is from funds previously appropriated 
in this Act as Federal payments. In addition, an increase of 
$1,595,503,000 is for capital construction projects. The 
Committee directs that any changes to the financial plan as 
submitted by the District must follow the reprogramming 
guidelines.
    With the expanded authority to use District funds, the 
Committee expects the District government to first and foremost 
address capital infrastructure needs.
    The Committee commends the DC leadership on the continued 
financial health of the District. The past year has brought new 
leaders to the District. The Committee expects the current 
administration and council to adhere to the same fiscal 
discipline and responsibility demonstrated in recent years, and 
the sound principles set forth by the Chief Financial Officer. 
Consistent with last year's report, the Committee expects the 
District government to use the flexible authority allowed in 
sections 818, 819, and 820 to first and foremost address 
capital infrastructure and other one-time needs.

                     TITLE V--INDEPENDENT AGENCIES


                   Consumer Product Safety Commission


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $62,728,000
Budget request, fiscal year 2008......................        63,250,000
Recommended in the bill...............................        66,838,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +4,110,000
    Budget request, fiscal year 2008..................        +3,588,000


    The Consumer Product Safety Act established the Consumer 
Product Safety Commission (CPSC), an independent Federal 
regulatory agency, to reduce unreasonable risk of injury 
associated with consumer products. Its primary responsibilities 
and overall goals are: to protect the public against 
unreasonable risk of injury associated with consumer products; 
to develop uniform safety standards for consumer products, 
minimizing conflicting State and local regulations; and to 
promote research into prevention of product-related deaths, 
illnesses, and injuries.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $66,838,000 for fiscal year 2008, 
$4,110,000 above fiscal year 2007 and $3,588,000 above the 
President's budget request. The Committee is concerned about 
the steady reductions in Commission staff over the past several 
years. The staffing reductions have placed a strain on the 
agency's ability to meet its mission. The Committee rejects the 
further reduction of staff proposed in the President's request 
and recommends funding sufficient to maintain staff at the 
fiscal year 2007 FTE authorized level of 420.
    The recommendation includes an additional $1,500,000 above 
the request for information technology improvements, including 
upgrades to administrative systems and databases. The Committee 
is concerned about the state of the CPSC's information 
technology systems and their ability to support data collection 
and analysis that provides needed information on product-
related injuries and deaths. The Committee directs the CPSC to 
include a full report on its information technology 
modernization requirements in its fiscal year 2009 budget 
request.
    The bill also includes language that limits official 
reception and representation expenses to no more than $500 in 
fiscal year 2008.
    The Committee is concerned about the level of civil 
penalties the CPSC is able to assess due to violations of the 
Consumer Product Safety Act and CPSC regulations. The current 
civil penalty is capped at $7,000 for each violation, up to a 
maximum penalty of $1,825,000. The Committee believes that this 
cap should be either substantially raised or eliminated. Higher 
civil penalties will create an incentive for increased 
manufacturer compliance and cooperation with the CPSC, as well 
as encourage manufacturers to recall products more quickly. The 
Committee encourages the CPSC to work with the authorizing 
committees of jurisdiction to develop a more effective civil 
penalty structure.

                     Election Assistance Commission


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2007.......................       $16,263,000
Budget request, fiscal year 2008......................        15,467,000
Recommended in the bill...............................        15,467,000
Bill compared with:
    Appropriation, fiscal year 2007...................          -796,000
    Budget request, fiscal year 2008..................             - - -


    The Election Assistance Commission (EAC) was established by 
the Help America Vote Act of 2002 (HAVA) and is charged with 
implementing provisions of that Act relating to the reform of 
federal election administration throughout the United States, 
including the development of voluntary voting systems 
guidelines, the certification and testing of voting systems, 
studies of election administration issues, and the 
implementation of election reform payments to states as well as 
grant programs related to election reform.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $15,467,000 for the EAC, a 
decrease of $796,000 below the fiscal year 2007 enacted level 
and the same as the budget request. The recommendation also 
includes the requested transfer of $3,250,000, a reduction of 
$1,700,000 from fiscal year 2007, to the National Institute of 
Standards and Technology.
    The EAC is charged with one of the most important roles in 
our democracy: helping to ensure our elections are fair, free 
from tampering, and ultimately, trustworthy. The Committee is 
concerned about EAC policies that keep the American people from 
important information compiled by the EAC in the course of 
conducting research. For example, the EAC commissioned a study 
on voter fraud and voter intimidation, yet did not release the 
findings of the independent consultants who conducted the 
study. The EAC instead released a substantially edited version 
of the consultants' work and, in so doing, excluded important 
conclusions reached by the consultants. Among the excluded 
information is an analysis that undermines the notion that 
voter fraud in American elections is rampant. The conclusions 
included in such studies may or may not be compelling, but the 
American public should be given the opportunity to make that 
judgment by having access to the studies.
    The Committee strongly encourages the EAC to increase 
transparency to ensure that its work is not perceived by the 
public as influenced by political considerations. The EAC 
should make public all draft reports of independent experts who 
have been commissioned to conduct studies of election 
administration issues.
    The EAC is a small agency with a very limited staff and 
budget. As such, the EAC needs to refocus its attention and 
resources toward meeting certain core responsibilities under 
the Help America Vote Act, including serving as a national 
clearinghouse on best practices, further improving and 
implementing voluntary voting system guidelines, and directing 
a national voting system certification program. More attention 
must be given to ensuring the usability, accessibility, and 
security of voting systems, as well as the fair, safe, and 
nonpartisan administration of elections. By focusing more on 
these issues, the EAC will improve its credibility as a trusted 
resource for stakeholders in the election community.

                        ELECTION REFORM PROGRAMS




Appropriation, fiscal year 2007.......................             - - -
Budget request, fiscal year 2008......................             - - -
Recommended in the bill...............................      $300,950,000
Bill compared with:
    Appropriation, fiscal year 2007...................      +300,950,000
    Budget request, fiscal year 2008..................      +300,950,000


    This appropriation provides for election reform 
requirements payments to states under the Help America Vote Act 
of 2002 and for other grant programs authorized by that Act.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes $300,000,000 for 
payments to states for carrying out activities to meet the 
requirements of HAVA and carry out other activities to improve 
the administration of elections. Funds may be used by states to 
implement HAVA requirements relating to voting systems, voter 
registration, provisional ballots, and other election 
administration activities. To receive payments, states will be 
required to file updated state plans on the use of funds with 
the EAC.
    Also included in this recommendation are $750,000 for the 
Help America Vote College Program and $200,000 for the National 
Student and Parent Mock Election. Both programs are authorized 
by the Help America Vote Act. The college program, first 
implemented during the 2004 election, recruits and trains young 
people in colleges, universities, and community colleges to 
serve as nonpartisan pollworkers, helping to address a 
nationwide pollworker shortage. The National Student and Parent 
Mock Election promotes participation in elections through voter 
education activities for students and their parents. Funds for 
these activities are provided in support of the 2008 election 
cycle.
    The Committee encourages the use of voting machines in 
student elections. This will allow students, the Nation's 
voters of tomorrow, to become familiar with voting processes 
and technologies so that when they turn 18, they will be 
comfortable with their civic duties. Groups involved in student 
elections should work with local election authorities to 
promote the use of voting machines by students.
    The Committee is concerned that the EAC recently ruled that 
HAVA money cannot be used to fund the purchase of HAVA 
compliant voting equipment that would replace other voting 
equipment purchased with HAVA funds. While the EAC claimed that 
such purchases are not ``reasonable'' costs, the Committee 
believes that ensuring accurate, reliable, and accessible 
voting is more than reasonable; it is essential. The Committee 
notes that the technology for voting equipment has improved in 
recent years, and states now have more experience with 
different technologies. States should have options and the 
flexibility to acquire better equipment, including equipment 
that will provide a durable, accessible, voter-verified paper 
ballot. The Committee believes that the EAC's 
``reasonableness'' test is not at all reasonable when it 
prevents states from using funds in this manner. Therefore, the 
Committee directs the EAC to reconsider its ruling. If the 
ruling does not change, Congress should consider a legislative 
remedy that will give states the flexibility they need.

                   Federal Communications Commission


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................      $291,282,000
Budget request, fiscal year 2008......................       313,000,000
Recommended in the bill...............................       313,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +21,718,000
    Budget request, fiscal year 2008..................             - - -


    The mission of the Federal Communications Commission (FCC) 
is to implement the Communications Act of 1934 in a manner that 
promotes competition, innovation, and deregulation in the 
communications industry and the availability of high quality 
communications services for all Americans.

                        COMMITTEE RECOMMENDATION

    The bill includes total budget authority of $313,000,000 
for the salaries and expenses of the FCC for fiscal year 2008, 
of which $312,000,000 is to be derived from offsetting 
collections, resulting in a direct appropriation of $1,000,000. 
The operating level for fiscal year 2008 is $21,718,000 above 
the current year and the same as the request.
    The Committee recommendation includes bill language, 
similar to that included in previous Appropriations Acts, which 
allows: (1) up to $4,000 for official reception and 
representation expenses; (2) purchase of uniforms and 
acquisition of vehicles; (3) special counsel fees; (4) 
collection of $312,000,000 in section 9 fees; and (5) the sum 
appropriated to be reduced as section 9 fees are collected.
    New provisions are also included to: (1) prohibit fees 
collected in excess of $312,000,000 from being available for 
obligation; and (2) prohibit remaining offsetting collections 
from prior years from being available for obligation.
    The recommendation includes a $20,980,000 transfer from the 
Universal Service Fund (USF) for additional audits and 
oversight activities. The recommendation also includes $500,000 
in direct appropriations to manage the USF audit program. The 
Committee believes that providing these funds to the Office of 
Inspector General will result in a stronger and more 
independent oversight and audit program. The Committee expects 
the FCC to continue to make efforts to eliminate grantee waste, 
fraud, and abuse a high priority.
    The Committee is concerned about the approaching February 
2009 deadline for transition to digital television (DTV) and 
the level of awareness in the general public concerning this 
deadline. Surveys show that many television viewers have never 
seen, read, or heard anything about digital television and the 
transition. The Committee is particularly concerned about 
viewers in disadvantaged and lower-income communities, 
including Hispanic, African American, disabled, and senior 
citizen communities, and their preparedness for the transition. 
The Committee commends the FCC for recognizing the need to 
educate the public regarding the transition and for including a 
DTV outreach initiative in its budget. The Committee does not 
believe, however, that the $1,500,000 budgeted as an increase 
to base for this effort is sufficient. The recommendation 
increases this initiative to $2,000,000 so that the FCC can 
increase consumer education and outreach.
    The Committee is familiar with FCC reports on cable choice 
systems and their effects on consumers. The Committee expects 
the FCC to keep the Committee fully informed of the 
Commission's plans for further research and action in this 
area.
    The recommendation includes a provision carried in previous 
Appropriations Acts, and in the request, limiting the funds 
available to administer the spectrum auctions program. The 
Committee expects the FCC to continue to refine its cost 
accounting system so that all costs, including auction costs, 
can be clearly distinguished by activity.

                 Federal Deposit Insurance Corporation


                      OFFICE OF INSPECTOR GENERAL

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2007.......................       $30,690,000
Budget request, fiscal year 2008......................        26,848,000
Recommended in the bill...............................        26,848,000
Bill compared with:
    Appropriation, fiscal year 2007...................        -3,842,000
    Budget request, fiscal year 2008..................             - - -


    Funding for the Office of the Inspector General at the 
Federal Deposit Insurance Corporation is provided pursuant to 
31 U.S.C. 1105(a)(25), which requires a separate appropriation 
account for appropriations for each Office of Inspector General 
of an establishment defined under section 11(2) of the 
Inspector General Act of 1978.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation, the same as the budget 
request, provides for the transfer of $26,848,000 from the Bank 
Insurance Fund, the Savings Association Insurance Fund, and the 
FSLIC Resolution Fund to finance the Office of Inspector 
General for fiscal year 2008.

                      Federal Election Commission


                         salaries and expenses





Appropriation, fiscal year 2007.......................       $54,528,000
Budget request, fiscal year 2008......................        59,224,000
Recommended in the bill...............................        59,224,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +4,696,000
    Budget request, fiscal year 2008..................             - - -


    The Federal Election Commission (FEC) administers the 
disclosure of campaign finance information, enforces 
limitations on contributions and expenditures, supervises the 
public funding of Presidential elections, and performs other 
tasks related to Federal elections.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $59,224,000 
for the Federal Election Commission (FEC), an increase of 
$4,696,000 over the amount appropriated in fiscal year 2007 and 
the same as the budget request.

                   Federal Labor Relations Authority


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $25,372,000
Budget request, fiscal year 2008......................        23,718,000
Recommended in the bill...............................        23,641,000
Bill compared with:
    Appropriation, fiscal year 2007...................        -1,731,000
    Budget request, fiscal year 2008..................           -77,000


    Established by title VII of the Civil Service Reform Act of 
1978, the Federal Labor Relations Authority (FLRA) serves as a 
neutral arbiter in the labor activities of non-postal Federal 
employees, Departments and agencies, and Federal unions on 
matters outlined in the Act, including collective bargaining 
and the settlement of disputes. Establishment of the FLRA gives 
full recognition to the role of the Federal Government as an 
employer. Under the Foreign Service Act of 1980, the FLRA also 
addresses similar issues affecting Foreign Service personnel by 
providing full staff support for the Foreign Service Impasse 
Disputes Panel and the Foreign Service Labor Relations Board.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $23,641,000 
for the Federal Labor Relations Authority, a decrease of 
$1,731,000 below the amount appropriated in fiscal year 2007 
and a decrease of $77,000 below the budget request.

                        Federal Trade Commission


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................      $211,289,000
Budget request, fiscal year 2008......................       240,239,000
Recommended in the bill...............................       247,489,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +36,200,000
    Budget request, fiscal year 2008..................        +7,250,000


    The mission of the Commission is to enforce a variety of 
Federal antitrust and consumer protection laws. Under these 
laws, the Commission seeks to ensure that the nation's markets 
are competitive, function vigorously and efficiently, and are 
free from undue governmental and private restrictions. The 
Commission also seeks to improve the operation of the 
marketplace by eliminating deceptive and unfair practices. 
Appropriations for both the Antitrust Division of the 
Department of Justice and the Commission are partially financed 
with Hart-Scott-Rodino Act pre-merger filing fees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends total budget authority of 
$247,489,000 for the salaries and expenses of the Federal Trade 
Commission for fiscal year 2008, which is $36,200,000 above the 
fiscal year 2007 level and $7,250,000 above the request. The 
Committee assumes that $139,000,000 of collections from Hart-
Scott-Rodino premerger filing fees and $20,000,000 of 
collections from Do-Not-Call list fees will partially offset 
the appropriation requirement for this account.
    The Committee recommendation assumes an increase of 
$4,500,000 over the request to provide additional support for: 
(1) increased subprime lending investigation activities, (2) 
the implementation of the US SAFE WEB Act to increase consumer 
protection activities relating to fighting cross-border fraud 
and deception, including spam, spyware, and Internet fraud and 
deception, (3) increased actions to fight identity theft, (4) 
increased activities relating to the FTC's maintaining 
competition mission, and (5) direct funding to provide training 
and technical assistance to developing nations as they move 
toward market-based economies and develop competition and 
consumer protection laws and policies.
    The Committee recommendation also assumes an increase of 
$2,750,000 over the request for information technology 
initiatives, such as enhanced identity theft systems for the 
Bureau of Consumer Protection.
    The Committee encourages the FTC to give attention to 
subprime lending problems, identity theft, and consumer fraud 
that require consumer protections especially affecting 
Hispanic, African American, disabled, and senior citizen 
populations. For example, the FTC has an aggressive campaign 
against consumer fraud in the Hispanic community. As recent 
immigrants, many Hispanics are unaware of the fraudulent 
practices perpetrated by some businesses and individuals 
against consumers. Consequently, many fall prey to such 
predators and suffer great financial losses. They may also be 
unaware of the remedies that are available to them if they are 
victimized. The FTC should continue to promote increased 
awareness through its Hispanic Outreach initiative, and it 
should work with all at-risk populations to ensure the highest 
possible level of consumer protection.
    The Committee urges the FTC to work with companies that 
extend credit to consumers to ensure that it is readily 
apparent to those individuals that they have the ability to 
``opt-out'' of receiving unsolicited financial information when 
they complete the necessary forms for an application for 
credit.
    The Committee also urges the FTC to encourage companies 
that have data breaches involving sensitive and personal 
consumer information to disclose to affected consumers, no 
later than one week following discovery of the data breach, 
that a data breach has occurred.
    Rising gasoline prices burden the United States economy and 
American consumers. The FTC is charged with ensuring that 
anticompetitive practices do not contribute to this problem. 
The Committee understands, for example, that the Commission 
reviews proposed mergers in the energy sector; conducts 
inquiries into important issues involving the pricing of 
gasoline and other fuels; and monitors the retail prices of 
gasoline in 360 cities and wholesale prices in 20 major urban 
areas for price anomalies. The Committee strongly urges the 
Commission to ensure that it allocates sufficient resources to 
carry out these critical tasks. If in the course of 
Commission's work regarding gasoline prices, the Commission 
identifies anticompetitive, fraudulent or criminal practices, 
the Committee directs the Commission to take prompt action to 
protect consumers and end these practices as quickly as 
possible and, in the case of criminal practices, to refer the 
matter to the Department of Justice for investigation and 
appropriate action.
    The Committee has reviewed recent FTC consent decrees in 
cases involving privacy, spyware, and similar matters. The 
consent decrees included fines to be paid by companies found to 
have generated significant revenues relying upon trade 
practices that were unfair or deceptive in violation of 
statutory standards. The Committee is concerned that the 
Commission has failed to explain how it determined the amount 
of the monetary remedies assessed and that such remedies appear 
to be unrelated to the revenues obtained by the companies that 
used unfair or deceptive practices. The Committee directs the 
FTC to submit to the Committees on Appropriations of the House 
and the Senate, and to the Committee on Energy and Commerce in 
the House and the Committee on Commerce, Science, and 
Transportation in the Senate, within 60 days after enactment of 
this Act, a report explaining its policies and standards for 
determining the amount of monetary remedies imposed in actions 
based on privacy, spyware, Internet, and similar violations and 
explaining the relationship of such remedies to the harms 
imposed upon consumers. The report should cover cases for the 
preceding three fiscal years. The Committee also directs the 
FTC to work with the appropriate authorizing committees of 
Congress to enact appropriate civil penalty authority for such 
cases and to include in the aforementioned report a description 
of actions being taken to obtain such authority.
    The recommendation includes bill language, as requested, 
prohibiting the use of funds to implement or enforce subsection 
(e)(2)(B) of section 43 of the Federal Deposit Insurance Act.
    The recommendation also includes bill language that: (1) 
allows for purchase of uniforms, hire of motor vehicles and 
contracts for collection services; (2) allows up to $2,000 for 
official reception and representation expenses; (3) allows for 
the collection of fees; (4) allows for the sum appropriated to 
be reduced as fees are collected; and (5) allows funding to be 
available until expended.

                    General Services Administration

    The Committee reiterates concerns regarding the infraction 
of the Hatch Act by employees of the General Services 
Administration (GSA), as well as numerous other disconcerting 
allegations of mismanagement by the agency leadership. The 
Committee is concerned that these allegations have had a 
negative impact on the mission of the GSA, as well as employee 
morale at the agency. The Committee urges the GSA to resolve 
these issues as quickly as possible, and to restore public 
confidence in its efforts.

                         FEDERAL BUILDINGS FUND




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2007......  $(7,555,088,000)
    Limitation on availability, budget estimate,         (8,090,918,000)
 fiscal year 2008.....................................
    Recommended in the bill...........................   (7,834,612,000)
Bill compared with:
    Availability limitation, fiscal year 2007.........    (+279,524,000)
    Availability limitation, fiscal year 2008 request.    (-256,306,000)


    The Federal Buildings Fund (FBF) finances the activities of 
the Public Buildings Service, which provides space and services 
for Federal agencies in a relationship similar to that of 
landlord and tenant. The FBF, established in 1975, replaces 
direct appropriations by using income derived from rent 
assessments, which approximate commercial rates for comparable 
space and services. The Committee makes funds available through 
a process of placing limitations on obligations from the FBF as 
a way of allocating funds for various FBF activities. The 
Committee may also appropriate funds into the FBF as a way of 
covering the difference between the total revenues coming into 
the FBF and the total limitation on the expenditure from the 
FBF.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $7,834,612,000 for 
the Fund, an increase of $279,524,000 above the fiscal year 
2007 enacted levels, a decrease of $256,306,000 below the 
request.
    To carry out the purposes of the Federal Buildings Fund 
established pursuant to section 210(f) of the Federal Property 
and Administrative Services Act of 1949, as amended (40 U.S.C. 
592), the revenues and collections deposited into the Fund, 
shall be available for necessary expenses in the aggregate 
amount of $7,902,078,000 of which: $524,540,000 is for 
construction (including funds for sites and expenses and 
associated design and construction services), $733,267,000 is 
for repairs and alterations, $155,781,000 is for installment 
acquisition payments (including payments on purchase 
contracts), $4,315,534,000 is for rental of space; and 
$2,105,490,000 is for building operations.
    The Committee greatly appreciates and supports the agency 
goals expressed in the administration's January 2007 Executive 
Order (E.G. 13423), ``Strengthening Federal Environmental, 
Energy and Transportation Management,'' but it has serious 
doubts that these goals are attainable without substantive 
changes to current laws and regulations that may impede 
progress. As the lead Federal agency for Federal building 
management and Federal procurement, GSA has the primary 
responsibility meeting the goals of the Executive Order as they 
pertain to that mission. Current Federal statutory 
requirements, for example, that require GSA to lease public 
federal buildings at fair market price may prevent GSA from 
acquiring higher rated Leadership in Energy and Environmental 
Design (LEED) certified buildings even though the leasing of 
these buildings would actually save the Federal government 
money over the long term because of their lower utility and 
maintenance costs. The Committee, therefore, directs the 
General Services Administration to identify all existing laws, 
rules and regulations that limit, restrict or otherwise impede 
progress in meeting the goals expressed by Executive Order 
13423, as they pertain to Federal building construction, 
management and Federal procurement and to report back to the 
Congress with its findings within 180 days after enactment of 
this Act.
    The Committee is concerned about the delay in constructing 
the replacement courthouse for the Central District of 
California, Los Angeles division (appropriated in fiscal years 
2001-2005), given the safety concerns and deteriorating 
conditions of the current aging federal facility. The Committee 
restates its commitment to the project and urges the GSA to 
continue working collaboratively with the Administrative Office 
of the United States Courts to expeditiously move the project 
forward and directs the GSA to report to the Committee on its 
progress within 90 days of enactment of this Act.
    GSA Leased Space. The Committee suggests that the General 
Services Administration (GSA) consider the Interagency Security 
Committee (ISC) Security Standards for Leased Space to be one 
of several factors that GSA considers when entering into 
contracts for leased space.
    The Committee is concerned that ISC Security Standards do 
not balance the security of buildings with the practical needs 
of the location of federal agencies and that these standards 
have not received the benefit of thorough and independent 
review. The implementation of the most recent standards may 
significantly restrict the location of federal leased space. 
The Committee is especially concerned with provisions which 
would allow agencies to exceed ISC standards, further 
constricting leasing options. The Committee requests the 
Government Accountability Office (GAO) conduct a full review of 
the methodology imputed by the ISC Security Standards, as well 
as the Standards' utility in providing practical guidance for 
the leasing of buildings for federal use.

                      CONSTRUCTION AND ACQUISITION




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2007......      $701,137,000
    Limitation on availability, budget estimate,             615,204,000
 fiscal year 2008.....................................
    Recommended in the bill...........................       524,540,000
Bill compared with:
    Availability limitation, fiscal year 2007.........      -176,597,000
    Availability limitation, fiscal year 2008 request.       -90,664,000


    The construction and acquisition activity funds site, 
design, construction, and management and inspection costs for 
construction of new Federal facilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $524,540,000 for 
construction and acquisition, including nonprospectus projects, 
a decrease of $176,597,000 below the fiscal year 2007 enacted 
level and $90,664,000 below the request.
    The Committee is concerned about the plans for a new 
Headquarters facility for the U.S. Coast Guard. The design 
specifications of the construction project include increases 
for utilization rates per person, as well as total square 
footage. The Committee also notes the number of sizeable 
special use spaces and the considerable amount of planned 
construction of costly secured space, on what will be a secure 
campus. The Committee notes that the prospectus approved by the 
House Transportation and Infrastructure Committee for the Coast 
Guard Headquarters at St. Elizabeths includes a total 
construction cost of $409,000,000. The Committee expects that 
this project will not exceed the approved prospectus amount of 
$409,000,000 in all years, including reprogramming requests. 
The Committee believes this is an adequate funding level to 
build on what is already government-owned property.
    Further, the Committee would like to encourage DHS and GSA 
to consider the planned special use spaces of the Coast Guard 
facilities and ensure that the DHS Headquarters Consolidation 
project does not duplicate special use spaces unnecessarily.
    The Committee is concerned with a lack of community 
planning regarding certain GSA work. As GSA considers plans for 
the San Ysidro Port of Entry, the Committee directs the GSA to 
work with the community surrounding the San Ysidro Port of 
Entry to develop a design plan that incorporates the interests 
of the surrounding commercial and business areas. As well, as 
GSA looks towards planning for future construction, the agency 
should consider the potential requirements for a Land Port of 
Entry at the Donna/Rio Bravo International Bridge.

                        REPAIRS AND ALTERATIONS




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2007......      $618,241,000
    Limitation on availability, budget estimate,             804,483,000
 fiscal year 2008.....................................
    Recommended in the bill...........................       733,267,000
Bill compared with:
    Availability limitation, fiscal year 2007.........      +115,026,000
    Availability limitation, fiscal year 2008 request.       -71,216,000


    The repairs and alterations activity funds design, 
construction and management and inspection for the repair, 
alteration, and modernization of existing real estate assets. 
It funds projects to improve health and safety, recapture 
vacant non-revenue producing Government-owned and leased space, 
and various special programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $733,267,000 for 
repairs and alterations, an increase of $115,026,000 from the 
fiscal year 2007 enacted level and $71,216,000 below the 
request, including the energy program, the design program and 
basic repairs and alterations. The Committee directs GSA to 
embark on the projects in priority order, starting with those 
projects that address safety and health needs and moving next 
to the projects with completed designs.
    The Committee directs that additional projects for which 
prospectuses have been fully approved may be funded under this 
category only if advance approval is obtained from the 
Committees on Appropriations, and that the amounts provided in 
this or any prior Act for ``Repairs and Alterations'' may be 
used to fund costs associated with implementing security 
improvements to buildings necessary to meet the minimum 
standards for security in accordance with current law and in 
compliance with the reprogramming guidelines of the appropriate 
Committees of the House and Senate.
    The Committee notes that the President's request includes 
$27,673,000 for repairs and alterations of the Nebraska Avenue 
Complex (NAC), currently utilized by DHS. This request includes 
upgrades to meet with specific needs of that Department. The 
Committee also notes that the President's request includes 
funding for design and construction of a Consolidated DHS 
Headquarters facility at the St. Elizabeths campus. The 
Committee encourages DHS and GSA to ensure balanced investment 
planning for improvements at the NAC. The Committee directs GSA 
to provide a plan within 120 days of enactment of this Act for 
the future uses and tenancy of the NAC given an assumption that 
many DHS functions will be consolidated at another facility.

                    INSTALLMENT ACQUISITION PAYMENTS




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2007......      $163,999,000
    Limitation on availability, budget estimate,             155,781,000
 fiscal year 2008.....................................
    Recommended in the bill...........................       155,781,000
Bill compared with:
    Availability limitation, fiscal year 2007.........        -8,218,000
    Availability limitation, fiscal year 2008.........             - - -


    The installment acquisition payments activity funds 
interest payment for facilities constructed under the Public 
Building Amendment of 1972 and lease-purchase agreements since 
1987, a total of 80 projects.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $155,781,000 for 
installation acquisition payments, a decrease of $8,218,000 
below the fiscal year 2007 enacted level and the same as the 
budget request. Based on this funding level, 68 of the original 
80 projects will be paid off, leaving 12 projects remaining.

                            RENTAL OF SPACE




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2007......    $4,067,881,000
    Limitation on availability, budget estimate,           4,383,000,000
 fiscal year 2008.....................................
    Recommended in the bill...........................     4,315,534,000
Bill compared with:
    Availability limitation, fiscal year 2007.........      +247,653,000
    Availability limitation, fiscal year 2008.........       -67,466,000


    The rental of space program funds lease payments, temporary 
space for Federal employees during major repair and alteration 
projects, and relocations from Federal buildings due to forced 
moves and relocations as a result of health and safety 
conditions.
    The Committee is concerned about the allocation of leased 
General Services Administration (GSA) office space in the 
Greater Washington, D.C. Metropolitan area. Evidence indicates 
that there is a disparity between the leased space awarded in 
Prince George's County and that in nearby jurisdictions in the 
Greater Washington, D.C. Metropolitan area. Specifically, the 
Committee is concerned with the lack of space awarded around 
Washington Metropolitan Area Transit Authority (WMATA) stations 
in Prince George's County, Maryland.
    The Committee is concerned about weaknesses in GSA's 
National Broker Contract program, designed to lease space in 
the private market for government clients. The Government 
Accountability Office has cited potential for conflicts of 
interest in this leasing program. These conflicts may lead to 
situations in which this program does not always provide for 
the best use of taxpayer money.
    GSA is directed to report to the Committee, within 120 days 
of enactment of this bill, on the development and 
implementation of measures which will quantify the performance 
of these contracts in comparison to GSA's in-house leasing 
capabilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $4,315,534,000 for 
rental of space, an increase of $247,653,000 above the fiscal 
year 2007 enacted level and $67,466,000 below the budget 
request.

                          BUILDING OPERATIONS




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2007......    $2,003,830,000
    Limitation on availability, budget estimate,           2,132,450,000
 fiscal year 2008.....................................
    Recommended in the bill...........................     2,105,490,000
Bill compared with:
    Availability limitation, fiscal year 2007.........      +101,660,000
    Availability limitation, fiscal year 2008.........       -26,960,000


    The building operations activity funds cleaning, 
maintenance, utilities, fuel, grounds, maintenance, space 
acquisitions and assignment services in government-owned 
facilities and in leased space when not provided by the lessor.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $2,105,490,000 for 
building operations, an increase of $101,660,000 above the 
fiscal year 2007 enacted level and $29,960,000 less than the 
budget request.

                           General Activities


                         Policy and Operations





Appropriation, fiscal year 2007 \1\...................      $135,522,000
Budget request, fiscal year 2008......................       144,338,000
Recommended in the bill...............................       142,945,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +7,423,000
    Budget request, fiscal year 2008..................       -1,393,000

\1\ In FY 07 this was funded as two separate accounts, Government-wide
  Policy and Operating Expenses.

    This appropriations account provides for government-wide 
policy and evaluation activities associated with the management 
of real and personal property assets and certain administrative 
services; government-wide policy support responsibilities 
relating to acquisition, telecommunications, information 
technology management, and related technology activities; and 
services as authorized by 5 U.S.C. 3109.
    Additionally, this account provides appropriations for 
activities that are not feasible for a user fee arrangement. 
Included under this heading are the Office of Citizen Services 
and Communications (OCSC), personal property utilization and 
donation activities, select management and administration 
activities, support of government-wide emergency management 
activities, and the Civilian Board of Contract Appeals.
    This account merges the Government-wide Policy and 
Operating Expenses accounts as requested. On a comparable 
basis, the recommended level is $7,423,000 above fiscal year 
2007 and $1,393,000 below the request.
    The Committee acknowledges that Public Service Recognition 
Week, a program of the Public Employees Roundtable, has 
educated America about the value of the career workforce, which 
carries out the daily operations of government. This program 
has existed for over 10 years and plays an important role in 
the education of our nation's youth by providing them with 
timely information about their government. The Committee urges 
the GSA to support the mission of the Public Employees 
Roundtable and provide $150,000 in administrative and 
logistical assistance to Public Service Recognition Week 
activities.

                      Office of Inspector General





Appropriation, fiscal year 2007.......................       $52,621,000
Budget request, fiscal year 2008......................        47,382,000
Recommended in the bill...............................        47,382,000
Bill compared with:
    Appropriation, fiscal year 2007...................        -5,239,000
    Budget request, fiscal year 2008..................             - - -


    This appropriation provides agency-wide audit and 
investigative functions to identify and correct GSA management 
and administrative deficiencies that create conditions for 
existing or potential instances of fraud, waste, and 
mismanagement. The audit function provides internal audit and 
contract audit services. Contract audits provide professional 
advice to GSA contracting officials on accounting and financial 
matters relative to the negotiation, award, administration, 
repricing, and settlement of contracts. Internal audits review 
and evaluate all facets of GSA operations and programs, test 
internal control systems, and develop information to improve 
operating efficiencies and enhance customer services. The 
investigative function provides for the detection and 
investigation of improper and illegal activities involving GSA 
programs, personnel, and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $47,382,000, 
the same as the budget request. The Committee provided extra 
funds to this account in fiscal year 2007 due to the heightened 
level of responsibility the Inspector General's office has 
recently undertaken. The Committee has approved $4,500,000 of 
those fiscal year 2007 funds for use in fiscal year 2008. 
Therefore, the program level for the Inspector General for 
fiscal year is $51,882,000, which is an increase over 
historical funding levels.
    The Committee is concerned with indications that GSA is 
overreaching into the business of the Office of Inspector 
General, which should be semi-autonomous from the agency for 
which it conducts investigations and audits. The Committee 
would like to reiterate language within the Inspector General 
Act which states that agency heads shall not ``. . . prevent or 
prohibit the Inspector General from initiating, carrying out, 
or completing any audit or investigation.'' The Committee is 
concerned with ongoing and increasing evidence that the General 
Services Administration is interfering with the operations and 
management of the Office of Inspector General, which threatens 
the autonomy of the office.

                   Electronic Government (e-Gov) Fund


                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2007.......................        $2,970,000
Budget request, fiscal year 2008......................         5,000,000
Recommended in the bill...............................         2,970,000
Bill compared with:
    Appropriation, fiscal year 2007...................             - - -
    Budget request, fiscal year 2008..................        -2,030,000


    The appropriation provides support for interagency 
electronic government (``e-Gov'') initiatives that utilize the 
Internet or other electronic methods as a means to increase 
Federal government accessibility, efficiency, and productivity.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,970,000 for 
the ``e-Gov'' fund, the same as the fiscal year 2007 enacted 
level and $2,030,000 below the budget request.
    The Committee again does not include a general provision 
proposed in the fiscal year 2008 budget request allowing the 
Office of Management and Budget (OMB) to use $40,000,000 of 
surplus funds in the General Supply Fund to finance OMB's list 
of ``e-Gov'' initiatives across government. The Committee 
refuses to relinquish oversight of the development and 
procurement of information technology projects of the various 
agencies under its jurisdiction. The Committee directs GSA to 
evaluate the pricing structure of its services to Federal 
agencies to determine if GSA is overcharging its Federal 
clients and report back to the Committee on Appropriations its 
findings no later than 120 days after enactment of this Act.

           Allowances and Office Staff for Former Presidents





Appropriation, fiscal year 2007.......................        $2,922,000
Budget request, fiscal year 2008......................         2,500,000
Recommended in the bill...............................         2,500,000
Bill compared with:
    Appropriation, fiscal year 2007...................          -422,000
    Budget request, fiscal year 2008..................             - - -


    This appropriation provides support consisting of pensions, 
office staffs, and related expenses for former Presidents Jimmy 
Carter, George Bush and Bill Clinton and for pension and postal 
franking privileges for the widows of former Presidents Lyndon 
B. Johnson, Gerald Ford and Ronald Reagan. Also, this 
appropriation is authorized to provide funding for security and 
travel related expenses for each former President and the 
spouse of a former President pursuant to section 531 of Public 
Law 103-329.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,500,000 for 
allowances and office staff of former Presidents, a decrease of 
$422,000 below the fiscal year 2007 enacted level and the same 
as the budget request. The following table describes the 
distribution of the funds:

    FISCAL YEAR 2008 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER 
                               PRESIDENTS

                                             (Dollars in thousands)
----------------------------------------------------------------------------------------------------------------
                                                    Carter        Bush       Clinton       Widows       Total
----------------------------------------------------------------------------------------------------------------
Personnel Compensation.........................           96           96           96            0          288
Personnel Benefits.............................            2           64           65            0          131
Benefits for Former Presidents.................          191          191          201           20          603
Travel.........................................            2           56           50            0          108
Rental Payments to GSA.........................          102          175          516            0          793
Communications, Utilities and Miscellaneous
 charges:
    Telephone..................................           10           17           79            0          106
    Postage....................................           15           13           15           14           57
Printing.......................................            5           14           14            0           33
Other Services.................................           83           76           65            0          224
Supplies & Materials...........................            5           15           26            0           46
Equipment......................................            7           69           35            0          111
                                                ----------------------------------------------------------------
      Total Obligations........................          518          786        1,162           34        2,500
----------------------------------------------------------------------------------------------------------------

                Federal Citizen Information Center Fund





Appropriation, fiscal year 2007.......................       $14,874,000
Budget request, fiscal year 2008......................        17,790,000
Recommended in the bill...............................        15,798,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +924,000
    Budget request, fiscal year 2008..................        -1,992,000


    The Consumer Information Center (CIC) was established 
within the General Services Administration (GSA) by Executive 
Order on October 26, 1970, to help Federal departments and 
agencies promote and distribute consumer information collected 
as a byproduct of the Government's program activities.
    The Federal Information Center (FIC) program was 
established within the GSA in 1966, and was formalized by 
Public Law 95-491 in 1980. The program's purpose is to provide 
the public with direct information about all aspects of Federal 
programs, regulations, and services. To accomplish this 
mission, contractual services are used to respond to public 
inquiries via a nationwide toll-free telephone call center.
    In 2000, the CIC assumed responsibility for the operations 
of the FIC program with the resulting organization being 
officially named the Federal Consumer Information Center. The 
Federal Consumer Information Center combines the nationwide 
toll-free telephone assistance program and the database of the 
FIC with the CIC website and publications distribution 
programs.
    During fiscal year 2002, the Federal Consumer Information 
Center became part of GSA's newly established Office of Citizen 
Services and Communications and was renamed the Federal Citizen 
Information Center (FCIC). The new Office serves as a central 
Federal gateway for citizens, businesses, other governments, 
and the media to obtain information and services from the 
government. FCIC assumed operational control of the 
FirstGov.gov website in fiscal year 2002.
    Public Law 98-63, enacted July 30, 1983, established a 
revolving fund for the CIC. Under this fund, FCIC activities 
are financed from the following: annual appropriations from the 
general funds of the Treasury, reimbursements from agencies for 
distribution of publications, user fees collected from the 
public, and any other income incident to FCIC activities. All 
are available as authorized in appropriation acts without 
regard to fiscal year limitations. The bill includes a 
limitation of $18,000,000 on the availability of the revolving 
fund. Any revenues accruing to this fund in excess of this 
amount shall remain in the fund and are not available for 
expenditure except as authorized in appropriation Acts.

                        COMMITTEE RECOMMENDATION

    For fiscal year 2008, the Committee recommends $15,798,000, 
an increase of $924,000 over the level for fiscal year 2007 and 
$1,992,000 less than the budget request.
    The appropriation will be augmented by reimbursements from 
Federal agencies for distribution of consumer publications, 
user fees from the public, and other income.

          GENERAL PROVISIONS--GENERAL SERVICES ADMINISTRATION

    Section 501. The Committee continues the provision that 
provides that costs included in rent received from government 
corporations for operation, protection, maintenance, upkeep, 
repair and improvement shall be credited to the Federal 
Buildings Fund.
    Section 502. The Committee continues the provision 
providing authority for the use of funds for the hire of motor 
vehicles.
    Section 503. The Committee continues the provision 
providing that funds made available for activities of the 
Federal Buildings Fund may be transferred between 
appropriations with advance approval of the Congress.
    Section 504. The Committee continues the provision 
prohibiting the use of funds for developing courthouse 
construction requests that do not meet GSA standards and the 
priorities of the Judicial Conference.
    Section 505. The Committee continues the provision 
providing that no funds may be used to increase the amount of 
occupiable square feet, provide cleaning services, security 
enhancements, or any other service usually provided, to any 
agency which does not pay the requested rent.
    Section 506. The Committee continues the provision that 
permits GSA to pay small claims (up to $250,000) made against 
the government.

                     Merit Systems Protection Board


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $38,666,000
Budget request, fiscal year 2008......................        40,086,000
Recommended in the bill...............................        40,086,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +1,420,000
    Budget request, fiscal year 2008..................             - - -


    The Merit Systems Protection Board (MSPB) is an 
independent, quasi-judicial agency established to protect the 
civil service merit system. The MSPB adjudicates appeals 
primarily involving personnel actions, certain Federal employee 
complaints, and retirement benefits issues. The MSPB reports to 
the President whether merit systems are sufficiently free of 
prohibited employment practices.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $40,086,000 
for the Merit Systems Protection Board, an increase of 
$1,420,000 above the amount appropriated in fiscal year 2007 
and the same as the budget request. This amount includes up to 
$2,579,000 which is transferred from the Civil Service 
Retirement and Disability Fund. The recommendation provides 
funding for mandatory pay raises, training, information 
technology improvements, and increased rent payments.

 Morris K. Udall Scholarship and Excellence in National Environmental 
                           Policy Foundation


 MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN NATIONAL ENVIRONMENTAL 
                           POLICY TRUST FUND

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2007.......................        $1,984,000
Budget request, fiscal year 2008......................             - - -
Recommended in the bill...............................         2,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................           +16,000
    Budget request, fiscal year 2008..................        +2,000,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,000,000 for the activities of 
the Morris K. Udall Foundation, an increase of $16,000 above 
the fiscal year 2007 enacted level and $2,000,000 above the 
request.

                 ENVIRONMENTAL DISPUTE RESOLUTION FUND




Appropriation, fiscal year 2007.......................        $1,896,000
Budget request, fiscal year 2008......................           750,000
Recommended in the bill...............................         2,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +104,000
    Budget request, fiscal year 2008..................        +1,250,000


    Public Law 105-156 established the United States Institute 
for Environmental Conflict Resolution as part of the Morris K. 
Udall Scholarship and Excellence in National Environmental 
Policy Foundation. It also established in the Treasury an 
Environmental Dispute Resolution Fund to be available to 
establish and operate the Institute. The purpose of the 
Institute is to conduct environmental conflict resolution and 
training.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,000,000 for 
the Environmental Dispute Resolution Fund, an increase of 
$104,000 above the fiscal year 2007 enacted level and 
$1,250,000 above the request.

              National Archives and Records Administration


                           Operating Expenses





Appropriation, fiscal year 2007.......................      $279,338,000
Budget request, fiscal year 2008......................       312,874,000
Recommended in the bill...............................       315,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +35,662,000
    Budget request, fiscal year 2008..................        +2,126,000


    This appropriation provides the National Archives and 
Records Administration (NARA) with funds for its basic 
operations dealing with management of the Government's archives 
and records, services to the public, operation of Presidential 
libraries, and review for declassification of classified 
security information.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $315,000,000 
for the operating expenses of NARA, an increase of $35,662,000 
above the fiscal year 2007 enacted level and $2,126,000 above 
the budget request. The Committee directs that the funds 
provided in excess of the budget request be used first to 
restore the public research hours that have been reduced since 
October 2006, and then to provide for increases in archivist 
staff, to help restore staffing reductions that have been made 
in recent years. These amounts should be added to the Operating 
Expenses base and requested in future years. The Committee 
believes that while it is important to continue efforts to 
reduce the backlog of materials for archiving, these efforts 
should not come at the expense of providing the public with 
access to NARA's services. NARA is directed to report to the 
Committee within 30 days of enactment on specific steps it is 
taking to restore the research hours and to bolster NARA's 
archivist workforce.
    The Committee notes that the National Archives served as an 
important source of information for the recent Public 
Broadcasting Service (PBS) documentary film, ``The War.'' This 
film has been criticized for its lack of inclusiveness in 
chronicling the American contribution to the allied victory in 
World War II, particularly with regard to the important 
contribution made by Hispanic Americans, who won numerous 
Congressional medals of honor. While the National Archives and 
Records Administration (NARA) ultimately cannot ensure the 
veracity and fairness of the histories produced by those who 
utilize NARA's facilities, the Committee encourages NARA to 
seek any and all opportunities to promote accurate, fair, and 
inclusive histories of the United States.

                      Electronic Records Archives





Appropriation, fiscal year 2007.......................       $45,254,000
Budget request, fiscal year 2008......................        58,028,000
Recommended in the bill...............................        58,028,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +12,774,000
    Budget request, fiscal year 2008..................             - - -


    The Electronic Records Archives appropriation supports all 
direct NARA actions and activities associated with this major 
project for preserving digitally created records for archival 
purposes, storing and managing them electronically, and 
ensuring appropriate long-term access.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $58,028,000 
for the Electronic Records Archives project, an increase of 
$12,774,000 above the fiscal year 2007 enacted level and the 
same as the budget request. Consistent with previous years, the 
release of the funds is subject to the approval of a GAO-
reviewed expenditure plan. In addition, NARA is directed to 
submit to the House and Senate Committees on Appropriations 
quarterly reports on the cost, schedule, and performance of the 
Electronic Records Archives (ERA) project. These quarterly 
reports should provide information on the status of the 
project's schedule, budget, and expenditures as measured 
against a reported baseline; a prioritization of project risks 
and their mitigation efforts; and corrective actions taken to 
manage identified schedule slippages, cost overruns, or quality 
problems should they occur.

                        Repairs and Restoration





Appropriation, fiscal year 2007.......................        $9,120,000
Budget request, fiscal year 2008......................         8,663,000
Recommended in the bill...............................        16,095,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +6,975,000
    Budget request, fiscal year 2008..................        +7,432,000


    This appropriation provides for the repair, alteration, and 
improvement of Archives facilities and Presidential libraries 
nationwide. It enables the National Archives to maintain its 
facilities in proper condition for visitors, researchers, and 
employees, and also maintain the structural integrity of the 
buildings.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $16,095,000 
for repairs and restoration, $7,432,000 above the budget 
request and $6,975,000 above the fiscal year 2007 enacted 
level. The increase above the request is for improvements to 
Presidential libraries.

 National Historical Publications and Records Commission Grants Program


                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2007.......................        $7,425,000
Budget request, fiscal year 2008......................             - - -
Recommended in the bill...............................        10,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +2,575,000
    Budget request, fiscal year 2008..................       +10,000,000


    The National Historical Publications and Records Commission 
(NHPRC) program provides for grants to preserve and publish 
records that document American history. Administered within the 
National Archives and Records Administration, the NHPRC helps 
state, local, and private institutions preserve non-federal 
records, helps publish the papers of major figures in American 
history, and helps archivists and records managers improve 
their techniques, training, and ability to serve a range of 
information users.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $10,000,000 
for the National Historical Publications and Research 
Commission grants program, an increase of $2,575,000 above the 
fiscal year 2007 enacted level. The budget request proposed no 
funding for this program.
    The Committee has strong concerns about the proposal not 
only to eliminate this program but also to correspondingly 
reduce the base funding in the Operating Expenses account by 
$2,000,000. The Committee notes that this amount is 
significantly greater than the amount actually needed to 
administer the NHPRC program. The Committee believes that the 
operating expenses of the NHPRC program must be budgeted 
accurately and expects NARA to do so in future budget 
submissions.

                  National Credit Union Administration


                       CENTRAL LIQUIDITY FACILITY

------------------------------------------------------------------------
                                                         limitation on
                                      Limitation on      administrative
                                       direct loans         expenses
------------------------------------------------------------------------
Fiscal year 2008 recommendation...    (1,500,000,000)          (329,000)
Fiscal year 2007 appropriation....    (1,500,000,000)          (323,000)
Fiscal year 2008 request..........    (1,500,000,000)          (329,000)
    Comparison with 2007                        - - -           (+6,000)
     appropriation................
    Comparison with 2008 request..              - - -              - - -
------------------------------------------------------------------------

    The Committee recommends a limitation of $1,500,000,000 on 
the Central Liquidity Facility (CLF) lending activity to member 
credit unions from borrowed funds. This limitation represents 
the same level as fiscal year 2007 and the same as the budget 
request. The Committee expects to be kept apprised of CLF 
lending activity.
    The Committee recommends the budget request of not more 
than $329,000 for administrative expenses, an increase of 
$6,000 above the fiscal year 2007 enacted level and the same as 
the budget request.

               COMMUNITY DEVELOPMENT REVOLVING LOAN FUND




Appropriation, fiscal year 2007.......................          $941,000
Budget request, fiscal year 2008......................           950,000
Recommended in the bill...............................         1,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................           +59,000
    Budget request, fiscal year 2008..................           +50,000


    The Community Development Revolving Loan Fund Program 
(CDRLF) was established in 1979 to assist officially designated 
``low-income'' credit unions in providing basic financial 
services to low-income communities. Low-interest loans and 
deposits are made available to assist these credit unions. 
Loans or deposits are normally repaid in five years, although 
shorter repayment periods may be considered. Technical 
assistance grants are also available to low-income credit 
unions. Earnings generated from the CDRLF are available to fund 
technical assistance grants in addition to funds provided for 
specifically in appropriations acts. Grants are available for 
improving operations as well as addressing safety and soundness 
issues.

                        COMMITTEE RECOMMENDATION

    For fiscal year 2008, the Committee recommends $1,000,000 
for the National Credit Union Administration's Community 
Development Revolving Loan Fund for technical assistance 
grants. While the Administration and NCUA have not requested 
additional funds for loans in fiscal year 2008, the Committee 
expects the CDRLF to continue making loans from their available 
funds derived from repaid loans and interest earned on previous 
loans to designated credit unions.

                      Office of Government Ethics


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $11,115,000
Budget request, fiscal year 2008......................        11,750,000
Recommended in the bill...............................        11,750,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +635,000
    Budget request, fiscal year 2008..................             - - -


    The Office of Government Ethics (OGE), established by the 
Ethics in Government Act of 1978, partners with other executive 
branch Departments and agencies to foster high ethical 
standards. The OGE issues and monitors rules, regulations, and 
memoranda pertaining to the prevention and resolution of 
conflicts of interest, post-employment restrictions, standards 
of conduct, and financial disclosure for executive branch 
employees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $11,750,000 
for the Office of Government Ethics, an increase of $635,000 
above the amount appropriated in fiscal year 2007 and the same 
as the budget request.

                     Office of Personnel Management


                         SALARIES AND EXPENSES

Appropriation, fiscal year 2007:
    General fund........................................    $111,605,000
    Transfer from trust funds...........................     112,546,000
Budget request, fiscal year 2008:
    General fund........................................     101,765,000
    Transfer from trust funds...........................     111,936,000
Recommended in the bill:
    General fund........................................     101,765,000
    Transfer from trust funds...........................     123,401,000
Bill compared with:
    Appropriation, fiscal year 2007:
        General fund....................................      -9,840,000
        Transfer from trust funds.......................     +10,855,000
    Budget request, fiscal year 2008:
        General fund....................................           - - -
        Transfer from trust funds.......................     +11,465,000

    The Office of Personnel Management (OPM) is the Federal 
Government agency responsible for management of Federal human 
resources policy and oversight of the merit civil service 
system. Although individual agencies are increasingly 
responsible for personnel operations, OPM provides a 
Government-wide policy framework for personnel matters, advises 
and assists agencies (often on a reimbursable basis), and 
ensures that agency operations are consistent with requirements 
of law, with emphasis on such issues as veterans preference. 
OPM oversees examining of applicants for employment, issues 
regulations and policies on hiring, classification and pay, 
training, investigations, and many other aspects of personnel 
management, and operates a reimbursable training program for 
the Federal Government's managers and executives. OPM is also 
responsible for administering the retirement, health benefits 
and life insurance programs affecting most Federal employees, 
retired Federal employees, and their survivors.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a general fund appropriation of 
$101,765,000 for OPM, a decrease of $9,840,000 below the 
enacted fiscal year 2007 level and the same as the fiscal year 
2008 budget request. The recommendation includes $5,991,000 for 
the Enterprise Human Resources Integration project, $1,351,000 
for the Human Resources Line of Business project, $340,000 for 
the E-Payroll project, and $170,000 for the E-Training program.
    The Committee also recommends $123,401,000 for 
administrative expenses to be transferred from the appropriate 
trust funds. The amount includes $26,465,000 for retirement 
systems modernization, an increase of $11,465,000 over the 
request. The Committee expects that this amount, together with 
a recent reprogramming approved by the Committee, will keep the 
project largely on schedule. The Committee directs OPM to 
provide the Committee with quarterly reports, starting on 
January 31, 2008, on the implementation of ``waves'' for 
activating Federal employees under the retirement systems 
modernization program.
    The Committee appreciates the importance of OPM's Federal 
Human Capital Survey in providing data for independent analyses 
of Federal employee satisfaction. OPM shall continue to make 
agencies' survey data publicly available in a consistent and 
consolidated format, and in a timely manner.
    The Committee urges OPM, working with the appropriate 
authorizing committees, to consider changes in law to bring 
Federal prevailing rate employees currently working in the 
Narragansett Bay, Rhode Island Wage Area within the coverage of 
the Boston, Massachusetts Wage Area. Currently, ``white 
collar'' Federal workers in Southeastern Massachusetts and 
Rhode Island are included in the Boston, Massachusetts Wage 
Area, while ``blue collar'' workers are not. There is no reason 
for different treatment between the two categories of 
employees.
    The Committee is aware of the vacancy at the Federal 
Prevailing Wage Advisory Committee at OPM. The Committee 
expects the OPM to report back to Congress within 90 days of 
enactment of this Act about the progress made on considering a 
wage change to the Narragansett Bay, Rhode Island Wage Area, 
despite the vacancy at the Committee.

                      Office of Inspector General

Appropriation, fiscal year 2007:
    General fund........................................      $2,061,000
    Transfer from trust funds...........................      16,278,000
Budget request, fiscal year 2008:
    General fund........................................       1,519,000
    Transfer from trust funds...........................      16,481,000
Recommended in the bill:
    General fund........................................       1,519,000
    Transfer from trust funds...........................      16,981,000
Bill compared with:
    Appropriation, fiscal year 2007:
        General fund....................................        -542,000
        Transfer from trust funds.......................        +703,000
    Budget request, fiscal year 2008:
        General fund....................................           - - -
        Transfer from trust funds.......................        +500,000

    This appropriation provides agency-wide audit, 
investigative, evaluation, and inspection functions to identify 
management and administrative deficiencies, which may create 
conditions for fraud, waste and mismanagement. The audits 
function provides internal agency audit, insurance audit, and 
contract audit services. Contract audits provide professional 
advice to agency contracting officials on accounting and 
financial matters regarding the negotiation, award, 
administration, repricing, and settlement of contracts. 
Internal audits review and evaluate all facets of agency 
operations, including financial statements. Evaluation and 
inspection services provide detailed technical evaluations of 
agency operations. Insurance audits review the operations of 
health and life insurance carriers, health care providers, and 
insurance subscribers. The investigative function provides for 
the detection and investigation of improper and illegal 
activities involving programs, personnel, and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a general fund appropriation of 
$1,519,000 for the Office of Inspector General (OIG) of the 
Office of Personnel Management, $542,000 below the fiscal year 
2007 enacted level and the same as the fiscal year 2008 budget 
request. In addition, the recommendation provides $16,981,000 
from appropriate trust funds, which is $703,000 above the 
fiscal year 2007 level and $500,000 above the request. The 
additional funds will enable the Office of Inspector General to 
maintain audit and investigative staff at the current level and 
avoid deterioration of the OIG's audit capabilities. The 
Committee recognizes the beneficial financial impact of the OIG 
in terms of the recovery of funds that result from 
investigations and audits.

      Government Payment for Annuitants, Employees Health Benefits





Appropriation, fiscal year 2007.......................    $8,780,260,000
Budget request, fiscal year 2008......................     8,884,000,000
Recommended in the bill...............................     8,884,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................      +103,740,000
    Budget request, fiscal year 2008..................             - - -


    This appropriation covers: (1) the Government's share of 
the cost of health insurance for annuitants as defined in 
sections 8901 and 8906 of title 5, United States Code; (2) the 
Government's share of the cost of health insurance for 
annuitants who were retired when the federal employees health 
benefits law became effective, as defined in the Retired 
Federal Employees Health Benefits Act of 1960; and (3) the 
Government's contribution for payment of administrative 
expenses incurred by the Office of Personnel Management in 
administration of the Act.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a mandatory appropriation of 
$8,884,000,000 for the Government Payment for Annuitants, 
Employees Health Benefits, an increase of $103,740,000 above 
the fiscal year 2007 enacted level, and the same as the 
Administration's request.

      Government Payment for Annuitants, Employees Life Insurance





Appropriation, fiscal year 2007.......................       $39,000,000
Budget request, fiscal year 2008......................        41,000,000
Recommended in the bill...............................        41,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +2,000,000
    Budget request, fiscal year 2008..................             - - -


    This appropriation finances the Government's share of 
premiums, which is one-third the cost, for basic life insurance 
for annuitants retiring after December 31, 1989, and who are 
less than 65 years old.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a mandatory appropriation of 
$41,000,000 for the Government Payment for Annuitants, 
Employees Life Insurance, an increase of $2,000,000 above the 
fiscal year 2007 enacted level, and the same as the 
Administration's request.

        Payment to Civil Service Retirement and Disability Fund





Appropriation, fiscal year 2007.......................   $10,532,000,000
Budget request, fiscal year 2008......................    11,941,000,000
Recommended in the bill...............................    11,941,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................    +1,409,000,000
    Budget request, fiscal year 2008..................             - - -


    This appropriation provides for payment of annuities, 
including the payment of annuities under special acts for 
persons employed on the construction of the Panama Canal or 
their widows and widows of employees of the Lighthouse Service; 
payment of the Federal government share of retirement costs of 
the unfunded liability resulting from any statute authorizing 
new or liberalized benefits, extension of retirement coverage, 
or pay increases; transfers for interest on unfunded liability 
and payment of military service annuities covering interest on 
the unfunded liability and annuity disbursements for military 
service; payments for spouse equity providing survivor 
annuities to eligible former spouses of annuitants who died 
between September 1978 and May 1986 and did not elect survivor 
coverage; and transfers for payment of FERS supplemental 
liability covering annual amortization payments financing 
supplemental liabilities for FERS.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a mandatory appropriation of 
$11,941,000,000 for the Payment to Civil Service Retirement and 
Disability Fund, an increase of $1,409,000,000 above the fiscal 
year 2007 enacted level, and the same as the Administration's 
request.

                       Office of Special Counsel


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $15,524,000
Budget request, fiscal year 2008......................        16,368,000
Recommended in the bill...............................        16,368,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +844,000
    Budget request, fiscal year 2008..................             - - -


    The Office of Special Counsel (OSC): (1) investigates 
federal employee allegations of prohibited personnel practices 
(including reprisal for whistleblowing) and, when appropriate, 
prosecutes before the Merit Systems Protection Board; (2) 
provides a channel for whistleblowing by federal employees; and 
(3) enforces the Hatch Act. The Office may transmit 
whistleblower allegations to the agency head concerned and 
require an agency investigation and a report to the Congress 
and the President when appropriate.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $16,368,000 
for the Office of Special Counsel, an increase of $844,000 
above the fiscal year 2007 enacted level, and the same as the 
fiscal year 2008 budget request.
    The Committee acknowledges and is concerned about the 
effect that recently initiated investigations may have on the 
OSC's resources. The Committee urges the OSC to carefully 
evaluate the need for additional appropriations and, if 
additional funds are necessary to conduct these investigations, 
pursue with the Office of Management and Budget a budget 
amendment to formally request the funds.

                   Securities and Exchange Commission


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................      $892,560,000
Budget request, fiscal year 2008......................       905,330,000
Recommended in the bill...............................       908,442,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +15,882,000
    Budget request, fiscal year 2008..................        +3,112,000


    The primary mission of the SEC is to protect investors and 
maintain the integrity of the securities markets. This includes 
ensuring full disclosure of financial information, regulating 
the nation's securities markets, and preventing fraud and 
malpractice in the securities and financial markets.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes $908,442,000 for the 
SEC, including $867,045,000 from new fee collections and 
$41,397,000 from prior year balances. This total funding level 
is $15,882,000 above the resources provided in fiscal year 2007 
and $3,112,000 above the request. The Committee provides an 
increase above the request to enhance the SEC's enforcement 
program, including investigations of accounting fraud, market 
manipulation, insider trading, and investment scams that target 
seniors and low-income communities. Additional resources are 
also provided for the Office of Investor Education and 
Assistance to expand investor education and financial literacy 
activities. The Committee commends the SEC for efforts to 
promote financial literacy, such as its recent participation in 
a program to teach personal finance concepts to high school 
juniors and seniors in the District of Columbia, and encourages 
the SEC to continue and expand such efforts.
    The Committee continues to be concerned about the 
implementation of section 404 of the Sarbanes-Oxley Act of 2002 
with respect to the costs borne by small businesses. The 
Committee strongly supports the Act's goal of ensuring that 
public companies identify any weaknesses in their internal 
controls so that investors can have confidence in companies' 
financial reporting. The Committee also appreciates the SEC's 
efforts, as reflected in its recent approval of new 
interpretive guidance on the implementation of section 404, to 
address the concerns of small businesses. However, the 
Committee is concerned that small businesses will not have 
sufficient time to review, asses, and prepare for compliance 
with the SEC's rules or the Public Company Accounting Oversight 
Board's (PCAOB) proposed auditing standard. Further, the small 
business community should have confidence that the new rules 
will actually reduce the cost of compliance. Therefore, the 
Committee encourages the SEC to continue to postpone the 
implementation of section 404 for companies with assets of less 
than $75 million for one additional year so that these 
companies will have time to review the revised requirements and 
prepare to comply fully with section 404. The delay would also 
give the SEC and the PCAOB additional time to fully review and 
take into consideration the comments of investors, small 
businesses, and auditing firms regarding the new guidance and 
standards.
    Smaller public companies deserve their own advocate within 
the SEC to help them face the joint challenge of meeting the 
404 compliance deadlines with untested risk-based regulation. 
The Committee recognizes the important role of the Commission's 
Office of Small Business Policy, and directs it to act as the 
Commission's Small Business Ombudsman. It encourages the Office 
to maintain an ``open door'' policy, regularly soliciting 
comments from small businesses and publishing their concerns 
within the Commission, to assure that the needs of small 
business are reflected in the Commission's rules, and in the 
interpretations and guidance the SEC provides to the public.
    The Committee recommendation assumes that $10,198,000 will 
be available for the Electronic Discovery Program, as assumed 
in the President's request.
    The Committee recommendation also includes bill language, 
similar to that included in previous Appropriations Acts, 
which: (1) allows for the rental of space; (2) makes up to 
$3,500 available for official reception and representation 
expenses; (3) makes up to $20,000 available for a permanent 
secretariat for the International Organization of Securities 
Commissions; and (4) makes up to $100,000 available for 
expenses of meetings and consultations with foreign 
governmental and regulatory officials.
    The Committee supports allowing the agency flexibility to 
manage its resources in an efficient manner and expects that, 
within 60 days of enactment of this Act, the SEC shall submit 
an initial spending plan by division/office describing 
personnel and non-personnel planned expenditures. This spending 
plan shall then serve as the basis for all future reprogramming 
notifications, in accordance with section 610 of this Act.

                        SELECTIVE SERVICE SYSTEM


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $24,850,000
Budget request, fiscal year 2008......................        22,000,000
Recommended in the bill...............................        22,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................        -2,850,000
    Budget request, fiscal year 2008..................             - - -


    The Selective Service System was established by the 
Selective Service Act of 1948. The basic mission of the System 
is to be prepared to supply manpower to the Armed Forces 
adequate to ensure the security of the United States during a 
time of national emergency. Since 1973, the Armed Forces have 
relied on volunteers to fill military manpower requirements, 
but selective service registration was reinstituted in July, 
1980.

                        COMMITTEE RECOMMENDATION

    For fiscal year 2008, the Committee recommends $24,850,000 
for the Selective Service System, $2,850,000 below the fiscal 
year 2007 funding level and the same as the budget request, to 
be spent as outlined in the budget justification document.

                     Small Business Administration

    The Small Business Administration (SBA) assists small 
businesses through programs involving loans, grants, and 
contracting preferences. These programs maintain and strengthen 
an economy that depends on small businesses for 60 to 80 
percent of job creation. SBA programs also serve disadvantaged 
populations so that their small business enterprises may 
overcome economic and social obstacles to success.
    The recommendation provides a total of $582,497,000 for the 
five appropriations accounts of the Small Business 
Administration (SBA). This amount is $118,980,000 above the 
budget request. Detailed guidance for the five SBA 
appropriations accounts is presented below.

                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................      $327,592,000
Budget request, fiscal year 2008......................       310,103,000
Recommended in the bill...............................       346,553,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +18,961,000
    Budget request, fiscal year 2008..................       +36,450,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends $346,553,000 for the salaries and 
expenses of the SBA, which is $18,961,000 above the current 
year and $36,450,000 above the request.
    Of the amount provided under this heading, $203,177,000 is 
for operating expenses of the SBA. In addition, a total of 
$144,414,000 from other SBA accounts may be transferred to and 
merged with the salaries and expenses account for indirect 
operating costs. This amount consists of $135,414,000 from the 
Business Loans Program Account and $9,000,000 from the Disaster 
Loans Program Account for administrative expenses related to 
those accounts. The Committee also anticipates that SBA will 
have an additional $11,381,000 in fee receipts and $6,388,000 
in reimbursable amounts from other agencies available for 
operating expenses. This will result in a total availability of 
$365,360,000 for the operating expenses of the SBA.
    The Committee recommendation for salaries and expenses 
includes a total of $143,376,000 for non-credit initiatives as 
follows:

[In thousands of dollars]

Small Business Development Centers......................        $100,000
Veterans Programs.......................................             743
SCORE...................................................           5,000
Women's Business Centers................................          13,000
Women's Business Council................................             743
Drug Free Workplace.....................................             990
Microloan Technical Assistance..........................          14,500
PRIME...................................................           3,000
Native American Outreach................................           1,000
7(j) Technical Assistance...............................           2,300
HUBZone.................................................           2,100
Total, non-credit initiatives...........................         143,376

    The SBA shall not reduce these noncredit programs to fund 
operating costs. In addition, the Committee directs the SBA to 
support no less than the fiscal year 2007 level of funding for 
the National Ombudsman; the Office of Advocacy, including 
support for the Advocacy Database; international trade 
programs; and the defense transition program. The Committee 
also expects the SBA to continue to enhance opportunities for 
small businesses to partner with the manufacturing sector.
    The Committee recommendation includes increased resources 
for programs that are especially effective in aiding small 
businesses in socially and economically disadvantaged 
communities. Examples are the PRIME program, 7(j) technical 
assistance program, and the HUBZone program. The Committee 
encourages the SBA to increase efforts to reach out to small 
businesses in these communities.
    The Committee is aware that there are certain rural areas 
that are underutilized business areas, but are excluded from 
HUBZone designation based on the current program authorization. 
The Committee encourages the SBA to continue to examine ways to 
incorporate these areas into any future revisions of the Small 
Business Act.
    The Committee recommendation includes requested language 
authorizing $3,500 for official reception and representation 
expenses as well as language authorizing the SBA to charge fees 
to cover the cost of publications and certain loan program 
activities. Requested language is also included that allows 
these fee collections to be credited to the salaries and 
expenses account to be available for carrying out these 
purposes without further appropriations.

                      OFFICE OF INSPECTOR GENERAL




Appropriation, fiscal year 2007.......................       $13,835,000
Budget request, fiscal year 2008......................        15,000,000
Recommended in the bill...............................        15,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................        +1,165,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends $15,000,000 for the Office of 
Inspector General of the SBA, which is $1,165,000 above the 
amount appropriated in fiscal year 2007 and the same as the 
request. In addition, $500,000 will be available by transfer 
from the Disaster loans program account pursuant to the fiscal 
year 2007 supplemental appropriations Act. The Office of 
Inspector continues to draw on $5,000,000 in funds made 
available by Public Law 109-148 to investigate waste, fraud, 
and abuse related to the consequences of the hurricanes in the 
Gulf of Mexico during calendar year 2005.

                 SURETY BOND GUARANTEES REVOLVING FUND




Appropriation, fiscal year 2007.......................        $2,824,000
Budget request, fiscal year 2008......................         3,000,000
Recommended in the bill...............................         3,000,000
Bill compared with:
    Appropriation, fiscal year 2007...................          +176,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $3,000,000 for the 
Surety Bond Guarantees Revolving Fund, which is $176,000 above 
the fiscal year 2007 level and the same as the request. The 
Committee notes that the Surety Bond program is not covered by 
the Federal Credit Reform Act, and that SBA requests an 
appropriation only when projections show that the reserves need 
to be replenished to cover estimated future liabilities. The 
amount provided should be sufficient to address anticipated 
costs.

                     BUSINESS LOANS PROGRAM ACCOUNT




Appropriation, fiscal year 2007.......................      $126,145,000
Budget request, fiscal year 2008......................       135,414,000
Recommended in the bill...............................       217,944,000
Bill compared with:
    Appropriation, fiscal year 2007...................       +91,799,000
    Budget request, fiscal year 2008..................       +82,530,000


                        COMMITTEE RECOMMENDATION

    The SBA Business Loan Program serves as an important source 
of capital for America's small businesses. The recommendation 
supports $17,500,000,000 for the 7(a) business loan program, 
$7,500,000,000 for the 504 certified development company 
program, $3,000,000,000 for Small Business Investment Company 
(SBIC) debentures, and $12,000,000,000 for the Secondary Market 
Guarantee Program. These program levels are the same as in the 
request.
    The Committee recommends a total of $217,944,000 in new 
budget authority for the Business Loans Program Account, which 
is $91,799,000 above the fiscal year 2007 level and $82,530,000 
above the request. Of the amount appropriated, $135,414,000 is 
for administrative expenses related to business loan programs, 
the same as the request. The amount provided for administrative 
expenses may be transferred to and merged with the 
appropriation for SBA salaries and expenses to cover the common 
overhead expenses associated with business loans.
    The recommendation includes $80,000,000 for the subsidy 
cost of the 7(a) business loan guarantee program.
    The recommendation includes $2,530,000 for the cost of the 
Microloan Program. The Committee does not approve the zero 
subsidy recommendation for Microloans that was assumed in the 
President's request. The amount provided is estimated to 
support $25,000,000 in loans.

                     DISASTER LOANS PROGRAM ACCOUNT




Appropriation, fiscal year 2007 \1\...................      $114,931,000
Budget request, fiscal year 2008......................     (156,000,000)
Recommended in the bill...............................             - - -
Bill compared with:
    Appropriation, fiscal year 2007...................      -114,931,000
    Budget request, fiscal year 2008..................             - - -

\1\ Does not include a rescission of $2,300,000 in unobligated balances.
  The amount also does not include $181,069,000 in unobligated balances
  made available through supplemental appropriations and available in
  fiscal year 2008.

    The Committee recommendation does not include any new 
budget authority for this account in fiscal year 2008. This 
recommendation is based on the inclusion of $181,069,000 for 
administrative expenses in a fiscal year 2007 supplemental 
appropriations bill, which remains available for obligation 
into fiscal year 2008.
    As required by the Federal Credit Reform Act of 1990, the 
Congress is required to appropriate an amount sufficient to 
cover the subsidy costs associated with all direct loan 
obligations and loan guarantee commitments made in fiscal year 
2008, as well as the administrative expenses of the loan 
programs. At this time, sufficient balances remain in the 
account so that no subsidy appropriation is necessary.
    The Committee looks forward to learning the recommendations 
from the National Academy of Public Administration on how to 
improve SBA's Disaster Loan program.

        ADMINISTRATIVE PROVISION--SMALL BUSINESS ADMINISTRATION

    The Committee continues an administrative provision for the 
Small Business Administration that authorizes transfer of up to 
5 percent of any appropriation to other appropriations, 
provided that transfers not increase an appropriation by more 
than 10 percent. The provision also requires that transfers be 
treated as reprogrammings of funds.

                      United States Postal Service


                   PAYMENT TO THE POSTAL SERVICE FUND

    The United States Postal Service (USPS) is funded almost 
entirely by Postal rate payers rather than tax payers. Funds 
provided to the Postal Service in the Payment to the Postal 
Service Fund include the costs of revenue forgone on free and 
reduced-rate mail for the blind and overseas voters; 
reconciliation adjustments for amounts appropriated for free 
and reduced rate mail and the actual amounts required; and 
partial reimbursement for losses which the Postal Service 
incurred as a result of insufficient appropriations in fiscal 
years 1991 through 1993 and the additional revenues it would 
have received between 1993 and 1998 in the absence of certain 
rate phasing provisions of the Revenue Forgone Act of 1993. 
Congress does not provide funds for either general operations 
or capital investments.




Appropriation, fiscal year 2007.......................      $108,915,000
Budget request, fiscal year 2008......................        88,864,000
Recommended in the bill...............................        88,864,000
Bill compared with:
    Appropriation, fiscal year 2007...................       -20,051,000
    Budget request, fiscal year 2008..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommends appropriations totaling 
$88,864,000 for Payment to the Postal Service Fund, the same as 
the President's request. The recommended amount is an advance 
appropriation for fiscal year 2009.
    Mail processing facility consolidations.--The USPS is 
undertaking a major realignment of its postal facilities and 
streamlining its transportation networks to achieve greater 
efficiencies, reduce redundancies, and achieve cost savings. 
However, this effort has raised many questions, including how 
many facilities will be needed, which facilities will be 
closed, what roles various facilities will serve, how long will 
the realignment take, and how will community concerns influence 
the decision-making process. Additionally, it is uncertain how 
the postal workforce, mailers, and communities will be affected 
by the realignment.
    The Committee is particularly concerned about planned 
consolidations of the Bronx, New York, mail processing 
operations into Manhattan, and of the Pasadena, California, 
processing and distribution center into the Santa Clarita and 
Industry processing and distribution centers. The Committee 
notes that the USPS Office of Inspector General (OIG) is 
currently conducting a thorough review of the Bronx 
consolidation. Further, the Committee notes that the OIG 
released in September 2006 an audit report on the Pasadena 
consolidation. This report found ``discrepancies with the Area 
Mail Processing (AMP) proposal in the areas of transportation 
costs, the number of employees affected, and changes in service 
standards.'' The report also found that the AMP study did not 
notify community stakeholders and elected officials in a timely 
manner.
    The Postal Service should work with community stakeholders 
and elected officials on all consolidation activities affecting 
the Bronx and Pasadena facilities. The Postal Service should 
not proceed with the Bronx consolidation until after: 1) the 
Inspector General completes his review and the report on that 
review is submitted to the Committee, and 2) public comments 
have been received and a report has been provided to the 
Committee detailing those comments. The Postal Service should 
not take any additional action on the consolidation or closure 
of the Pasadena facility until after: 1) the Postal Service 
conducts an additional review of the Pasadena AMP proposal to 
examine the claims of efficiencies and cost savings not 
supported by the Inspector General's report, and 2) the Postal 
Service reports to the Committee on this additional review and 
other actions it has taken to address the Inspector General's 
findings.
    Postal facilities.--The Committee is concerned about the 
condition of postal facilities in a number of municipalities in 
Puerto Rico, including Dorado, Guaynabo, Rincon, San German, 
Villalba, Yabucoa, and Yauco. The Committee recommends that the 
Postal Service, working with local officials and community 
leaders, evaluate the needs of these communities and include 
these facilities in its nationwide priority list to ensure that 
capital resources are focused on the maintenance and 
enhancement of existing infrastructure at these facilities. The 
Committee further recommends that the Postal Service report on 
these efforts to the Committee.
    The Committee is also concerned about the postal facility 
needs of the City of Indio, California. The Committee is aware 
that the current facility is inadequate to meets the City's 
needs given its rapid population growth. The Committee 
recommends that the Postal Service work with City officials to 
evaluate the need for a new facility and report its findings to 
the Committee.
    Mail service.--The Committee is concerned about recent 
reports that Chicago, Illinois, has the worst in-town overnight 
mail service in the country. According to a recent review by 
USPS, only 90 percent of the first-class mail sent between 
Chicago ZIP codes was delivered in one day--the lowest 
percentage of overnight delivery in the nation. The audit found 
that problems were citywide. The Committee directs the Postal 
Service to continue working with city officials and report to 
the Committee on the actions being taken to correct these 
deficiencies expeditiously.
    Local postal management.--The Committee urges the Postal 
Service to solicit and take into consideration the views of 
local postal management in the development of appropriate 
staffing levels to ensure that postal customers receive the 
quality mail service that they expect and deserve. The 
Committee directs that the Postal Service report in writing 180 
days after enactment of this Act to the Committees on 
Appropriations of the Senate and the House of Representatives, 
the Senate Committee on Homeland Security and Governmental 
Affairs, and the House Committee on Oversight and Government 
Reform on the steps taken to achieve this objective.

                        United States Tax Court


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2007.......................       $47,625,000
Budget request, fiscal year 2008......................        45,326,000
Recommended in the bill...............................        45,069,000
Bill compared with:
    Appropriation, fiscal year 2007...................        -2,556,000
    Budget request, fiscal year 2008..................          -257,000


    The U.S. Tax Court adjudicates controversies involving 
deficiencies in income, estate, and gift taxes. The Court also 
has jurisdiction to determine deficiencies in certain excise 
taxes to issue declaratory judgments in the areas of 
qualifications of retirement plans, exemption of charitable 
organizations, and to decide certain cases involving disclosure 
of tax information by the Commissioner of the Internal Revenue 
Service.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $45,069,000 for the U.S. Tax 
Court, $257,000 below the budget request and $2,556,000 below 
the amounts provided in fiscal year 2007. The Committee notes 
that the requested reduction below the fiscal year 2007 level 
is possible due to various personnel cost savings as well as 
productivity gains associated with prior information technology 
improvements. In addition, the Committee notes that not to 
exceed 50 percent of any end-of-year balances of budget 
authority may remain available in fiscal year 2008 under the 
terms and conditions of the fiscal year 2007 enacted bill. The 
Committee believes, therefore, that a reduction to the budget 
request of $257,000 is appropriate to reflect a minimum level 
of expected end-of-year balances that would be available in 
fiscal year 2008 and will not affect the operations of the 
account.

                 TITLE VI--GENERAL PROVISIONS, THIS ACT

    Section 601. The Committee continues the provision 
requiring pay raises to be funded within appropriated levels in 
this Act or previous appropriations Acts.
    Section 602. The Committee continues the provision 
prohibiting pay and other expenses for non-Federal parties in 
regulatory or adjudicatory proceedings funded in this Act.
    Section 603. The Committee continues the provision 
prohibiting obligations beyond the current fiscal year and 
prohibits transfers of funds unless expressly so provided 
herein.
    Section 604. The Committee continues the provision limiting 
consulting service expenditures of public record in procurement 
contracts.
    Section 605. The Committee continues the provision 
prohibiting funds in this Act to be transferred without express 
authority.
    Section 606. The Committee continues the provision 
prohibiting the use of funds to engage in activities that would 
prohibit the enforcement of section 307 of the 1930 Tariff Act.
    Section 607. The Committee continues the provision 
concerning employment rights of Federal employees who return to 
their civilian jobs after assignment with the Armed Forces.
    Section 608. The Committee continues the provision 
concerning compliance with the Buy American Act.
    Section 609. The Committee continues the provision 
prohibiting the use of funds by any person or entity convicted 
of violating the Buy American Act.
    Section 610. The Committee continues and modifies the 
provision specifying reprogramming procedures. The provision 
requires that agencies or entities funded by the Act notify the 
Committee and obtain prior approval from the Committee for any 
reprogramming of funds that: (1) creates a new program; (2) 
eliminates a program, project, or activity; (3) increases funds 
or personnel for any program, project, or activity for which 
funds have been denied or restricted by the Congress; (4) 
proposes to use funds directed for a specific activity by 
either the House or Senate Committees on Appropriations for a 
different purpose; (5) augments existing programs, projects, or 
activities in excess of $1,000,000 or 10 percent, whichever is 
less; (6) reduces existing programs, projects, or activities by 
$1,000,000 or 10 percent, whichever is less; or (7) reorganizes 
offices, programs, or activities. The provision also directs 
the agencies funded by this Act to submit operating plans for 
the Committee's review within 60 days of the bill's enactment.
    Section 611. The Committee continues the provision 
providing that fifty percent of unobligated balances may remain 
available for certain purposes.
    Section 612. The Committee continues the provision 
providing that funds used by the Executive Office of the 
President not be used to request any official background 
investigation from the Federal Bureau of Investigation.
    Section 613. The Committee continues the provision 
requiring that cost accounting standards not apply to a 
contract under the Federal Employee Health Benefits Program.
    Section 614. The Committee continues the provision 
regarding non-foreign area cost of living allowances.
    Section 615. The Committee continues the provision 
prohibiting the expenditure of funds for abortions under the 
FEHBP.
    Section 616. The Committee continues the provision 
prohibiting the expenditure of funds for abortions under the 
FEHBP unless the life of the mother is in danger or the 
pregnancy is a result of an act of rape or incest.
    Section 617. The Committee continues the provision waiving 
restrictions on the purchase of non-domestic articles, 
materials, and supplies in the case of acquisition by the 
Federal Government of information technology.
    Section 618. The Committee continues the provision 
prohibiting the use of funds for a proposed rule relating to 
the determination that real estate brokerage is a financial 
activity.
    Section 619. The Committee includes a new provision 
regarding investments relating to the Harry S Truman Memorial 
Scholarship Trust Fund.
    Section 620. The Committee includes a provision prohibiting 
funds in this Act from being used for any Federal Government 
contract with any foreign incorporated entity which is treated 
as an inverted domestic corporation.
    Section 621. The Committee includes a provision for 
initiatives related to small business development and 
entrepreneurship, including programmatic and construction 
activities, to be awarded as follows:
           $231,000 for the Abraham Lincoln National 
        Airport Commission, Minority and Small Business 
        Development and Procurement Opportunities;
           $300,000 for Adelante Development Center;
           $231,000 for the Advantage West Economic 
        Development Group, Certified Entrepreneurial Community 
        Program;
           $231,000 for the Alleghany Highlands 
        Economic Development Corporation to develop business 
        assistance software tools;
           $500,000 for the Ashland County, OH, Career 
        Center for the Northeast Central Ohio Bioscience 
        Consortium;
           $175,000 for Barry University for the 
        Institute for Community and Economic Development;
           $250,000 for Ben Franklin Technology 
        Partners;
           $131,000 for the Boston Chinatown 
        Neighborhood Center Workforce Development Initiative;
           $250,000 for the Bridgeport Regional 
        Business Council for One Coast, One Future;
           $81,000 for the Bronx Council on the Arts 
        for marketing of local business arts initiatives;
           $231,000 for the Brooklyn College 
        Entrepreneurial Center;
           $231,000 for the Buffalo Niagara 
        International Trade Foundation, World Trade Center 
        Buffalo Niagara, Buffalo, NY;
           $231,000 for California State University, 
        Pasadena Biotech Training Facility;
           $231,000 for the Caribbean American Chamber 
        of Commerce and Industry, Caribbean American Trade 
        Center/Business Incubator renovation;
           $231,000 for the Center for Economic Growth, 
        Business Acceleration Program, Greene County, NY;
           $100,000 for the Center for Women and 
        Enterprise, RI, CWE Technology Learning Center;
           $231,000 for the City of Charlotte, NC, 
        Belvedere Business Park Project;
           $231,000 for the City of Chicago, IL, Small 
        business assistance program for ex-offenders;
           $231,000 for the City of Inglewood, CA, Grow 
        Inglewood;
           $231,000 for the City of Los Angeles, Adams-
        La Brea Retail Project;
           $231,000 for the Colorado State University 
        Sustainable Biofuels Development Center;
           $300,000 for the Columbus College of Art and 
        Design for an industrial design center;
           $231,000 for the Community College of 
        Philadelphia, Northeast Regional Center for Small 
        Business Development;
           $150,000 for the Connected Technologies 
        Corridor, Athens WV;
           $231,000 for the Cuyahoga Community College, 
        Veterans Outreach and Business Development Center;
           $231,000 for the Dartmouth Regional 
        Technology Center ;
           $231,000 for the Delaware County Community 
        College Small Business Center, Media, PA;
           $231,000 for the Detroit Economic Growth 
        Corporation, Business Attraction program;
           $231,000 for Detroit Renaissance for a 
        business district;
           $250,000 for DuPage Technology Park to 
        establish a minority business incubator;
           $231,000 for the Economic Development 
        Coalition of Southeast Michigan, Ann Arbor SPARK 
        Business Accelerator;
           $231,000 for the Entrepreneurial Development 
        Center Business Accelerator, Cedar Rapids, IA;
           $231,000 for the expansion of the Incubator 
        at the Purdue Technology Center of Northwest Indiana;
           $500,000 for Experience Works, Inc. in 
        Richmond Hill, GA;
           $231,000 for Experience Works, Senior 
        Community Service Employment Program, Arlington, VA;
           $250,000 for the Fairplex Trade and 
        Conference Center, Pomona, CA;
           $231,000 for the Federal HUBZone Incubator 
        in Elizabeth City, NC;
           $231,000 for the Friends of the Big South 
        Fork for community and economic development;
           $231,000 for the Greater Harlem Chamber of 
        Commerce;
           $300,000 for the Greater North Louisiana 
        Community Development Corporation;
           $231,000 for the Greyston Foundation, 
        Workforce Development Initiative, Yonkers, NY;
           $231,000 for the Hispanic Information and 
        Telecommunications Network telecommunication pilot 
        initiative for small business development;
           $231,000 for the Historic Downtown Retail 
        Project, Valley Economic Development Center;
           $231,000 for the Hudson Alpha Institute 
        Biotechnology facility;
           $231,000 for the Illinois Institute of 
        Technology, Innovating Manufacturing Education ;
           $231,000 for Indiana State University for 
        the Center for New Business Development, Terre Haute, 
        IN;
           $100,000 for the Inquilinos Boricuas en 
        Accion's Employment Services Initiative;
           $200,000 for the Institute for Advanced 
        Learning and Research for a business development 
        initiative;
           $150,000 for the John C. Calhoun Community 
        College for robotics training equipment;
           $131,000 for the Johnson and Wales 
        University Latino Business Outreach Program
           $231,000 for the Johnstown Area Regional 
        Industries Incubator and Workforce Development program;
           $231,000 for Kulanu for the Vocational 
        Education Program for employment skills development;
           $231,000 for the LaGuardia Community College 
        Emerging Designers Unit;
           $153,000 for Lewis and Clark State College 
        for business training tools;
           $231,000 for the Lorain County Community 
        College Entrepreneurship Innovation Center;
           $450,000 for the Louisiana Small Business 
        Development Center;
           $231,000 for the Louisville Medical Center 
        Development Corporation, LMCDC/MetaCyte Business Labs 
        and Incubator;
           $231,000 for the Macomb County Department of 
        Planning and Economic Development, Macomb County 
        Business Accelerator;
           $250,000 for the Marshalltown Community 
        College for a rural entrepreneurship incubator;
           $250,000 for the Medina County, OH, Office 
        of Workforce Development;
           $150,000 for the Mifflin County Industrial 
        Development Corporation;
           $500,000 for Mississippi State University 
        for the Convergence of Scientists and Entrepreneurs to 
        Expedite Commercialization;
           $129,000 for the Mitchell County Development 
        Foundation, Inc. for the Home of the Perfect Christmas 
        Tree project;
           $200,000 for Montana State University's 
        manufacturing extension center;
           $400,000 for the Montana World Trade Center;
           $231,000 for Montgomery College for the 
        Germantown Biotechnology Project;
           $100,000 for the National Association of 
        Development Organizations;
           $231,000 for the National Federation of the 
        Blind, Access to Libraries and Learning: Creating 
        Technology for the Blind to promote entrepreneurship;
           $100,000 for the New College Institute to 
        support economic development and small business 
        development;
           $231,000 for the North Carolina Rural 
        Economic Development Center Rural Ventures Fund;
           $231,000 for the North Dakota State College 
        of Science, Nanotechnology Applied Science Laboratory;
           $50,000 for the North Iowa Area Community 
        College for a regional economic development 
        organization;
           $150,000 for the North Side Industrial 
        Development Co., New Business-New Beginning Program;
           $231,000 for the Northeast Entrepreneur 
        Fund, Northland Entrepreneur Development System for 
        technical assistance, Virginia, MN;
           $231,000 for the Northwest Agriculture 
        Business Center Technological Network, Mt. Vernon, WA;
           $231,000 for Northwestern University for the 
        Molecular Therapeutics and Diagnostics Building;
           $231,000 for Ohio University for Economic 
        Development through Entrepreneurship in Appalachia;
           $150,000 for the Oil Region Alliance of 
        Business, Industry and Tourism;
           $300,000 for Operation New Hope in FL;
           $250,000 for the Peoria NEXT Innovation 
        Center;
           $231,000 for the Phoenix House for Drug-free 
        workplace initiatives;
           $231,000 for Portland State University 
        Science Research and Teaching Center;
           $250,000 for the Ready to Work project in 
        OH;
           $231,000 for the Rio Hondo College 
        Automotive Technician Training Demonstration Project;
           $125,000 for the Rochester Tooling and 
        Machining Association for workforce development 
        programs;
           $125,000 for Rock Valley College for a 
        manufacturing career development and training program;
           $125,000 for the Rockford Area Ventures 
        Small Business Incubator and Technology 
        Commercialization Center;
           $231,000 for the Rockland Small Business 
        Development Center, Small Business Employment 
        Assistance;
           $231,000 for the Rowan University South 
        Jersey Technology Park;
           $231,000 for the San Francisco Planning and 
        Urban Research Association, SPUR Urban Center;
           $231,000 for Sandoval County, NM--Sandoval 
        County Technology project;
           $231,000 for the Seedco Financial Services 
        Alabama Minority and Women-owned Business Enterprises 
        (M/WBE) Investment Initiative for technical assistance 
        and training;
           $500,000 for SEKTDA for economic and small 
        business development in Southern and Eastern Kentucky;
           $231,000 for the Sephardic Angel Fund 
        Financial Literacy & Business Youth Education Project, 
        Brooklyn, NY;
           $231,000 for SER-Jobs for Progress National, 
        for the Dual-language Financial Literacy Technology 
        Training;
           $250,000 for Shawnee State University for an 
        Immersive Technology and Arts Center;
           $300,000 for Sierra College for a 
        mechatronics workforce training initiative;
           $231,000 for Soundview Community in Action 
        technology and business development services;
           $231,000 for the South Dakota School of 
        Mines, Black Hills Nanoscale Minerals Institute, 
        infrastructure development;
           $100,000 for the South Side Innovation 
        Center;
           $231,000 for the Spanish American Merchants 
        Association, Statewide Technical Assistance & Resource 
        Program, Hartford, CT;
           $150,000 for the St. Jerome's Church 
        Community Center project for job skills training, 
        Bronx, NY;
           $231,000 for the Student Business Incubator 
        at the University of Northern Iowa;
           $150,000 for the TechRanch Technology 
        Venture Center;
           $500,000 for the Enterprise Center in TN;
           $231,000 for the Illinois Institute of 
        Technology, technology incubator;
           $231,000 for the University of Texas at San 
        Antonio, UTSA Mexico Center, business development 
        research;
           $250,000 for the Thomas More College for 
        training programs in the fields of health sciences and 
        healthcare management;
           $231,000 for the Thurgood Marshall College 
        Fund for the Minority Community Small Business & 
        Economic Development Initiative;
           $231,000 for the University of Connecticut, 
        Avery Point for the Avery Point Technology Incubation 
        Center;
           $231,000 for the University of Maryland-
        Baltimore BioPark;
           $231,000 for the University of Missouri, 
        Kansas City, KCSource Link, Vet Link for small business 
        development for veterans;
           $231,000 for the University of Notre Dame, 
        Robinson Enterprises Community Learning Center;
           $43,000 for the University of Pittsburgh at 
        Bradford for an entrepreneurship center;
           $500,000 for the University of South Florida 
        to establish a Center for the Development of 
        Information Technology;
           $231,000 for the University of Southern 
        Maine, Lewiston-Auburn College for The Learning Works 
        project;
           $231,000 for the University of Texas 
        Brownsville International Trade Center;
           $100,000 for the Urban League of Rochester, 
        Minority and Women Business Development Programs;
           $231,000 for the USS Saratoga Museum 
        Foundation workforce development program;
           $231,000 for the Valley Economic Development 
        Center, Technical Assistance Office;
           $231,000 for the Valley Economic Development 
        Center, Valley Initiative for Business Expansion;
           $231,000 for the Vermont SBDC Veterans 
        Assistance Program;
           $150,000 for the Wallace State Community 
        College for an integrated manufacturing center;
           $250,000 for the Wayne County, MI, 
        Department of Public Services to develop technologies 
        to support small business;
           $200,000 for Wayne County, NY, for a 
        business development initiative;
           $231,000 for the West Virginia University 
        Research Corporation for renovations of a small 
        business incubator;
           $231,000 for the Western MA Enterprise Fund 
        for technical assistance for developing enterprises;
           $231,000 for Williamsburg County, South 
        Carolina for a commodity development small business 
        initiative;
           $500,000 for Wittenberg University to expand 
        business education;
           $350,000 for the Workforce Initiative 
        Association in Canton, OH;
           $231,000 for the Youngstown Edison Incubator 
        Corporation and the Youngstown Central Area Community 
        Improvement Corp, Youngstown Business Incubator; and
           $231,000 for the Youngstown Warren Regional 
        Chamber, Salute to Success, Business Entrepreneurship 
        Incubator.

                     TITLE VII--GENERAL PROVISIONS


                            GOVERNMENT-WIDE


                Departments, Agencies, and Corporations

    Section 701. The Committee continues and makes permanent 
the provision authorizing agencies to pay costs of travel to 
the United States for the immediate families of federal 
employees assigned to foreign duty in the event of a death or a 
life threatening illness of the employee.
    Section 702. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from the illegal use of 
controlled substances.
    Section 703. The Committee continues the provision 
regarding price limitations on vehicles to be purchased by the 
Federal Government. Price limitations are updated consistent 
with the President's budget request.
    Section 704. The Committee continues the provision allowing 
funds made available to agencies for travel, to also be used 
for quarter allowances and cost-of-living allowances.
    Section 705. The Committee continues the provision 
prohibiting the government, with certain specified exceptions, 
from employing non-U.S. citizens whose posts of duty would be 
in the continental U.S.
    Section 706. The Committee continues the provision ensuring 
that agencies will have authority to pay GSA bills for space 
renovation and other services.
    Section 707. The Committee continues the provision allowing 
agencies to finance the costs of recycling and waste prevention 
programs with proceeds from the sale of materials recovered 
through such programs.
    Section 708. The Committee continues the provision 
providing that funds may be used to pay rent and other service 
costs in the District of Columbia.
    Section 709. The Committee continues and makes permanent 
the provision prohibiting payments to persons filling positions 
for which they have been nominated after the Senate has voted 
not to approve the nomination.
    Section 710. The Committee continues the provision 
prohibiting interagency financing of groups absent prior 
statutory approval.
    Section 711. The Committee continues the provision 
prohibiting the use of funds for enforcing regulations 
disapproved in accordance with the applicable law of the U.S.
    Section 712. The Committee continues the provision limiting 
the pay increases of certain prevailing rate employees.
    Section 713. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Section 714. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Section 715. The Committee continues the provision 
requiring agencies to certify that a Schedule C appointment was 
not created solely or primarily to detail the employee to the 
White House.
    Section 716. The Committee continues and makes permanent 
the provision requiring agencies to administer a policy 
designed to ensure that all workplaces are free from 
discrimination and sexual harassment.
    Section 717. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 718. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 719. The Committee continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 720. The Committee continues the provision 
prohibiting propaganda, publicity and lobbying by executive 
agency personnel in support or defeat of legislative 
initiatives.
    Section 721. The Committee continues the provision 
prohibiting any federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 722. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing or telephone lists to any person or 
organization outside the government without the approval of the 
Committees on Appropriations.
    Section 723. The Committee continues the provision 
prohibiting the use of funds for propaganda and publicity 
purposes not authorized by Congress.
    Section 724. The Committee continues the provision 
directing agency employees to use official time in an honest 
effort to perform official duties.
    Section 725. The Committee continues the provision 
authorizing the use of funds to finance an appropriate share of 
the Federal Accounting Standards Advisory Board.
    Section 726. The Committee continues the provision, with 
technical modifications, authorizing agencies to transfer funds 
(not to exceed $10,000,000) to the Government-wide Policy 
account of GSA to finance an appropriate share of various 
government-wide boards and councils.
    Section 727. The Committee continues the provision that 
permits breast feeding in a Federal building or on Federal 
property if the woman and child are authorized to be there.
    Section 728. The Committee continues the provision that 
permits interagency funding of the National Science and 
Technology Council and provides for a report on the budget and 
resources of the National Science and Technology Council. The 
report should include the entire budget of the National Science 
and Technology Council.
    Section 729. The Committee continues the provision 
requiring documents involving the distribution of Federal funds 
to indicate the agency providing the funds and the amount 
provided.
    Section 730. The Committee repeals the provision extending 
authorization for agency franchise funds.
    Section 731. The Committee continues the provision 
prohibiting the use of funds to monitor personal information 
relating to the use of Federal Internet sites to collect, 
review, or create any aggregate list that includes personally 
identifiable information relating to access to or use of any 
Federal Internet site of such agency.
    Section 732. The Committee continues a provision requiring 
health plans participating in the FEHBP to provide 
contraceptive coverage and provides exemptions to certain 
religious plans.
    Section 733. The Committee continues the provision 
providing recognition of the U.S. Anti-Doping Agency as the 
official anti-doping agency.
    Section 734. The Committee continues a provision allowing 
funds for official travel to be used by departments and 
agencies, if consistent with OMB Circular A-126, to participate 
in the fractional aircraft ownership pilot program.
    Section 735. The Committee continues a provision 
prohibiting funds for implementation of OPM regulations 
limiting detailees to the Legislative Branch, and implementing 
limitations on the Coast Guard Congressional Fellowship 
Program.
    Section 736. The Committee continues the provision that 
restricts the use of funds for Federal law enforcement training 
facilities.
    Section 737. The Committee continues the provision 
concerning the use of funds for the ``e-Gov'' initiative that 
were not appropriated specifically for that purpose.
    Section 738. The Committee continues a provision, with 
modifications, regarding public-private competitions in 
reference to OMB Circular A-76.
    Section 739. The Committee continues a provision, with 
modifications, providing that the adjustment in rates of basic 
pay for employees under statutory pay systems taking effect in 
fiscal year 2008 shall be an increase of 3.5 percent. Language 
has been updated to reflect the current status of Department of 
Defense employees covered under the National Security Personnel 
System.
    Section 740. The Committee continues the provision that 
prohibits executive branch agencies from creating prepackaged 
news stories that are broadcast or distributed in the United 
States unless the story includes a clear notification within 
the text or audio of that news story that the prepackaged news 
story was prepared or funded by that executive branch agency. 
This provision confirms the opinion of the Government 
Accountability Office dated February 17, 2005 (B-304272).
    Section 741. The Committee continues the provision 
prohibiting funds used in contravention of section 552a of 
title 5, United States Code or section 552.224 of title 48 of 
the Code of Federal Regulations.
    Section 742. The Committee continues, with modification, 
the provision requiring agencies to evaluate the 
creditworthiness of an individual before issuing the individual 
a government travel charge card and limits agency actions 
accordingly. The Committee recommends new language, as 
requested, authorizing an assessment of the individual's 
consumer report from a consumer reporting agency. The Committee 
expects that this authority to review individual employees' 
consumer reports shall be used only to assess creditworthiness 
for the purpose of issuing an individually-billed government 
travel charge card and shall not be used for any other purpose.
    Section 743. The Committee recommends a new provision to 
require the Office of Management and Budget to submit a report 
on budget information relating to Great Lakes restoration 
activities.
    Section 744. The Committee continues the provision 
concerning the application of these general provisions to title 
IV and to title VIII.

                     TITLE VIII--GENERAL PROVISIONS


                          DISTRICT OF COLUMBIA

    Section 801. The Committee continues the provision that 
specifies that an appropriation for a particular purpose or 
object shall be considered as the maximum amount that may be 
expended for said purpose or object.
    Section 802. The Committee continues the provision that 
permits funds for travel and payment of dues.
    Section 803. The Committee continues the provision that 
appropriates funds for refunding overpayments of taxes 
collected and for paying settlements and judgments against the 
District of Columbia government.
    Section 804. The Committee modifies the provision that 
prohibits the use of appropriation for publicity or propaganda 
purposes.
    Section 805. The Committee modifies the provision that 
establishes reprogramming and transfer requirements with 
respect to notification requirements for the reprogramming of 
local funds.
    Section 806. The Committee continues the provision that 
prohibits use of funds only to the objects for which the 
appropriations were made.
    Section 807. The Committee continues the provision that 
clarifies the pay setting authority for District employees as 
the District's Merit Personnel Act rather than title 5 of the 
United States Code.
    Section 808. The Committee continues the provision that 
directs the Mayor of the District of Columbia to submit new 
fiscal year 2008 revenue estimates as of the end of such 
quarter.
    Section 809. The Committee continues the provision that 
allows the mayor to accept, obligate, and expend Federal, 
private, and other grants received by the District government 
that are not reflected in the amounts appropriated in this Act.
    Section 810. The Committee continues the provision that 
restricts the use of official vehicles to official duties and 
not between a residence and workplace, except in the case of a 
police officer who resides in the District of Columbia at the 
discretion of the Chief, an officer or employee of the D.C. 
Fire and Emergency Medical Services Department who resides in 
the District of Columbia and is on call 24 hours a day, the 
Mayor of the District of Columbia, and the Chairman of the 
Council of the District of Columbia.
    Section 811. The Committee modifies the provision that 
prohibits the use of appropriated funds by the Corporation 
Counsel or any other officer or entity of the District 
government to provide assistance for any petition drive or 
civil action which seeks to require Congress to provide for 
voting representation in Congress for the District of Columbia 
to apply to Federal funds.
    Section 812. The Committee modifies a provision to prohibit 
the use of Federal funds in this Act to carry out any program 
of distributing sterile needles or syringes for the hypodermic 
injection of any illegal drug.
    Section 813. The Committee continues the provision that 
requires the Chief Financial Officers of the District of 
Columbia to certify that they understand the duties and 
restrictions applicable to their agency as a result of this 
Act.
    Section 814. The Committee continues the provision that 
includes a ``conscience clause'' on legislation that pertains 
to contraceptive coverage by health insurance plans.
    Section 815. The Committee modifies the provision that 
requires the Mayor of the District of Columbia to submit 
quarterly reports on various issues pertaining to the District 
of Columbia.
    Section 816. The Committee continues the provision that 
requires the CFO to submit a revised appropriated funds 
operating budget in the format of the budget that the District 
government submitted pursuant to section 442 of the DC Home 
Rule Act for all agencies no later than 30 calendar days after 
the date of enactment of this Act.
    Section 817. The Committee continues the provision that 
prohibits the use of any funds in the Act to: (1) pay the fees 
of an attorney who represents a party in an action or any 
attorney who defends any action, including an administrative 
proceeding, brought against D.C. Public Schools under the 
Individuals With Disabilities Act (IDEA) in excess of $4,000 
for that action; (2) pay the fees of an attorney or firm whom 
the CFO determines to have a pecuniary interest, either through 
an attorney, officer or employee of the firm, in any special 
education diagnostic services, schools, or other special 
education service providers; and (3) require all savings to be 
used to expand special education services within the District.
    Section 818. The Committee continues the provision that 
allows for appropriations in this Act to be increased by no 
more than $42,000,000 from unexpended general funds, and may be 
used only for one-time expenditures, to avoid deficit spending, 
for debt reduction, for program needs, or to avoid revenue 
shortfalls.
    Section 819. The Committee continues the provision that 
allows the District to spend ``Other-Type Funds'' under certain 
conditions.
    Section 820. The Committee continues the provision that 
allows for short-term borrowing from the emergency and 
contingency reserve funds established under section 450A of the 
District of Columbia Home Rule Act (Public Law 98-198; D.C. 
Official Code, sec. 1-204.50a) under certain circumstances.
    Section 821. The Committee continues the provision 
prohibiting funds to change the legality of marijuana use.
    Section 822. The Committee continues the provision relating 
to abortion.
    Section 823. The Committee includes the provision to allow 
the Public Defenders Service to receive a direct appropriation.
    Section 824. The Committee continues the provision which 
limits references to ``this Act'' as referring to only this 
title and to title IV.

              HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives:

                        Constitutional Authority

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee on Appropriations bases 
its authority to report this legislation from clause 7 of 
section 9 of Article I of the Constitution of the United States 
of America which states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill that are not authorized 
by law:


                           Transfers of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following statement is submitted 
describing the transfers of funds provided in the accompanying 
bill.
    The Committee recommends the following transfers:

               Under Title I--Department of the Treasury

    Under the Department of the Treasury, ``Departmental 
offices, salaries and expenses'', up to two percent, may be 
transferred between program activities of the Departmental 
Offices; and that of the $5,114,000 for the Treasury-wide 
Financial Statement Audit and Internal Control program, such 
amounts as necessary may be transferred to the Department's 
offices and bureaus.
    Under the Department of the Treasury, ``Department-wide 
systems and capital investments programs'', amounts necessary 
to satisfy the requirements of the Department's offices, 
bureaus, and other organizations may be transferred.
    Under the Internal Revenue Service (IRS), ``Enforcement'', 
up to $10,000,000 may be transferred to ``Operations support'' 
for management of the Interagency Crime and Drug Enforcement 
program.
    Section 101 allows the transfer of five percent of any 
appropriation (or three percent of IRS, ``Enforcement'') made 
available to the IRS to any other IRS appropriation, subject to 
prior Congressional approval.
    Section 111 authorizes transfers, up to two percent, 
between Departmental Offices, Office of Inspector General, 
Financial Management Service, Alcohol and Tobacco Tax and Trade 
Bureau, Financial Crimes Enforcement Network, and the Bureau of 
the Public Debt appropriations under certain circumstances.
    Section 112 authorizes transfers, up to two percent, 
between the IRS and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 115 authorizes the transfer of funds from the 
``Financial management service, salaries and expenses'', to the 
``Debt collection fund'' as necessary to cover the cost of debt 
collection.

           Under Title II--Executive Office of the President

    Language is included under Office of National Drug Control 
Policy, ``Counterdrug technology assessment center'', allowing 
for the transfer of funds to other Federal departments or 
agencies.
    Language is included under Federal Drug Control Programs, 
``High intensity drug trafficking areas program'', which allows 
for the transfer of funds to other Federal departments or 
agencies.
    Language is included under Federal Drug Control Programs, 
``Other Federal drug control programs'', allowing the transfer 
of funds to other Federal departments or agencies.
    Language is included under Special Assistance to the 
President and the Official Residence of the Vice President, 
``Operating expenses'', allowing the transfer of funds to other 
Federal departments or agencies.
    Section 201. The Committee continues a provision permitting 
the Executive Office of the President to transfer up to 10 
percent of any appropriation, subject to a 15 day notification 
period.

                     Under Title III--The Judiciary

    Under the Judiciary, ``Courts of appeals, district courts, 
and other judicial services'', funds may be transferred to the 
United States Marshals Service for courthouse security.
    Section 302. The Committee continues a provision permitting 
the Judiciary to transfer up to five percent of any 
appropriation with certain limitations.

                  Under Title V--Independent Agencies

    Under Title V, Independent Agencies, a number of transfers 
are allowed: 1) the General Services Administration allowances 
and Office Staff for Former Presidents account may transfer 
such sums as necessary to the Department of the Treasury for 
certain pension benefits; 2) the General Services 
Administration Electronic Government Fund may transfer 
$2,970,000 to Federal departments in pursuit of programs goals; 
3) under the Election Assistance Commission, $3,250,000 is 
transferred to the National Institute of Standards and 
Technology; 4) under the Federal Communications Commission, not 
to exceed $20,980,000 is transferred from the Universal Service 
Fund; 5) under Merit Systems Protection Board, up to $2,579,000 
is transferred from the Civil Service Retirement and Disability 
Fund; 6) under Morris K. Udall Scholarship and Excellence in 
National Environmental Policy Foundation, a certain percentage 
of funds may be transferred to the Native Nations Institute for 
necessary expenses; 7) under the National Archives and Records 
Administration, $2,000,000 is transferred from the National 
Historical Publications and Records Commission to the operating 
expenses account; 8) under Office of Personnel Management, 
amounts from certain trust funds are transferred to the 
salaries and expenses account for administrative expenses; 9) 
under Office of Personnel Management, Office of Inspector 
General, amounts from certain trust funds are transferred to 
the salaries and expenses account for administrative expenses; 
10) under Administrative Provision-Small Business 
Administration, amounts may be transferred between 
appropriations of the Small Business Administration.
    Section 503. The Committee continues the provision 
providing that funds made available for activities of the 
Federal Building Fund may be transferred with advance approval 
from the Committees on Appropriations.

       Under Title VIII--General Provisions, District of Columbia

    The Committee has included language to allow the District 
of Columbia to transfer local funds in certain instances.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

         AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Air Transportation Safety and 
System Stabilization Act''.

                     TITLE I--AIRLINE STABILIZATION

SEC. 101. AVIATION DISASTER RELIEF.

  (a) In General.--Notwithstanding any other provision of law, 
the President shall take the following actions to compensate 
air carriers for losses incurred by the air carriers as a 
result of the terrorist attacks on the United States that 
occurred on September 11, 2001:
          [(1) Subject to such terms and conditions as the 
        President deems necessary, issue Federal credit 
        instruments to air carriers that do not, in the 
        aggregate, exceed $10,000,000,000 and provide the 
        subsidy amounts necessary for such instruments in 
        accordance with the provisions of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661 et seq.).]

           *       *       *       *       *       *       *


[SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD.

  [(a) Definitions.--In this section, the following definitions 
apply:
          [(1) Board.--The term ``Board'' means the Air 
        Transportation Stabilization Board established under 
        subsection (b).
          [(2) Financial obligation.--The term ``financial 
        obligation'' means any note, bond, debenture, or other 
        debt obligation issued by an obligor in connection with 
        financing under this section and section 101(a)(1).
          [(3) Lender.--The term ``lender'' means any non-
        Federal qualified institutional buyer (as defined by 
        section 230.144A(a) of title 17, Code of Federal 
        Regulations (or any successor regulation) known as Rule 
        144A(a) of the Securities and Exchange Commission and 
        issued under the Security Act of 1933, including--
                  [(A) a qualified retirement plan (as defined 
                in section 4974(c) of the Internal Revenue Code 
                of 1986 (26 U.S.C. 4974(c)) that is a qualified 
                institutional buyer; and
                  [(B) a governmental plan (as defined in 
                section 414(d) of the Internal Revenue Code of 
                1986 (26 U.S.C. 414(d)) that is a qualified 
                institutional buyer.
          [(4) Obligor.--The term ``obligor'' means a party 
        primarily liable for payment of the principal of or 
        interest on a Federal credit instrument, which party 
        may be a corporation, partnership, joint venture, 
        trust, or governmental entity, agency, or 
        instrumentality.
  [(b) Air Transportation Stabilization Board.--
          [(1) Establishment.--There is established a board (to 
        be known as the ``Air Transportation Stabilization 
        Board'') to review and decide on applications for 
        Federal credit instruments under section 101(a)(1).
          [(2) Composition.--The Board shall consist of--
                  [(A) the Secretary of Transportation or the 
                designee of the Secretary;
                  [(B) the Chairman of the Board of Governors 
                of the Federal Reserve System, or the designee 
                of the Chairman, who shall be the Chair of the 
                Board;
                  [(C) the Secretary of the Treasury or the 
                designee of the Secretary; and
                  [(D) the Comptroller General of the United 
                States, or the designee of the Comptroller 
                General, as a nonvoting member of the Board.
  [(c) Federal Credit Instruments.--
          [(1) In general.--The Board may enter into agreements 
        with 1 or more obligors to issue Federal credit 
        instruments under section 101(a)(1) if the Board 
        determines, in its discretion, that--
                  [(A) the obligor is an air carrier for which 
                credit is not reasonably available at the time 
                of the transaction;
                  [(B) the intended obligation by the obligor 
                is prudently incurred; and
                  [(C) such agreement is a necessary part of 
                maintaining a safe, efficient, and viable 
                commercial aviation system in the United 
                States.
          [(2) Terms and limitations.--
                  [(A) Forms; terms and conditions.--A Federal 
                credit instrument shall be issued under section 
                101(a)(1) in such form and on such terms and 
                conditions and contain such covenants, 
                representations, warranties, and requirements 
                (including requirements for audits) as the 
                Board determines appropriate.
                  [(B) Procedures.--Not later than 14 days 
                after the date of enactment of this Act, the 
                Director of the Office of Management and Budget 
                shall issue regulations setting forth 
                procedures for application and minimum 
                requirements, which may be supplemented by the 
                Board in its discretion, for the issuance of 
                Federal credit instruments under section 
                101(a)(1).
  [(d) Financial Protection of Government.--
          [(1) In general.--To the extent feasible and 
        practicable, the Board shall ensure that the Government 
        is compensated for the risk assumed in making 
        guarantees under this title.
          [(2) Government participation in gains.--To the 
        extent to which any participating corporation accepts 
        financial assistance, in the form of accepting the 
        proceeds of any loans guaranteed by the Government 
        under this title, the Board is authorized to enter into 
        contracts under which the Government, contingent on the 
        financial success of the participating corporation, 
        would participate in the gains of the participating 
        corporation or its security holders through the use of 
        such instruments as warrants, stock options, common or 
        preferred stock, or other appropriate equity 
        instruments.
          [(3) Deposit in treasury.--All amounts collected by 
        the Secretary of the Treasury under this subsection 
        shall be deposited in the Treasury as miscellaneous 
        receipts.]

           *       *       *       *       *       *       *


[SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.

  [(a) In General.--The President may only issue a Federal 
credit instrument under section 101(a)(1) to an air carrier 
after the air carrier enters into a legally binding agreement 
with the President that, during the 2-year period beginning 
September 11, 2001, and ending September 11, 2003, no officer 
or employee of the air carrier whose total compensation 
exceeded $300,000 in calendar year 2000 (other than an employee 
whose compensation is determined through an existing collective 
bargaining agreement entered into prior to September 11, 
2001)--
          [(1) will receive from the air carrier total 
        compensation which exceeds, during any 12 consecutive 
        months of such 2-year period, the total compensation 
        received by the officer or employee from the air 
        carrier in calendar year 2000; and
          [(2) will receive from the air carrier severance pay 
        or other benefits upon termination of employment with 
        the air carrier which exceeds twice the maximum total 
        compensation received by the officer or employee from 
        the air carrier in calendar year 2000.
  [(b) Total Compensation Defined.--In this section, the term 
``total compensation'' includes salary, bonuses, awards of 
stock, and other financial benefits provided by an air carrier 
to an officer or employee of the air carrier.]

           *       *       *       *       *       *       *


SEC. 107. DEFINITIONS.

  In this title, the following definitions apply:
          (1)  * * *
          [(2) Federal credit instrument.--The term ``Federal 
        credit instrument'' means any guarantee or other pledge 
        by the Board issued under section 101(a)(1) to pledge 
        the full faith and credit of the United States to pay 
        all or part of any of the principal of and interest on 
        a loan or other debt obligation issued by an obligor 
        and funded by a lender.]

           *       *       *       *       *       *       *

                              ----------                              


TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *


PART III--EMPLOYEES

           *       *       *       *       *       *       *


                        SUBPART I--MISCELLANEOUS

 CHAPTER 95--PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL REVENUE 
SERVICE

           *       *       *       *       *       *       *


Sec. 9502. Pay authority for critical positions

  (a) When the Secretary of the Treasury seeks a grant of 
authority under section 5377 for critical pay for 1 or more 
positions at the Internal Revenue Service, the [Office of 
Management and Budget] Office of Personnel Management may fix 
the rate of basic pay, notwithstanding sections 5377(d)(2) and 
5307, at any rate up to the salary set in accordance with 
section 104 of title 3.

           *       *       *       *       *       *       *


Sec. 9503. Streamlined critical pay authority

  (a) Notwithstanding section 9502, and without regard to the 
provisions of this title governing appointments in the 
competitive service or the Senior Executive Service and 
chapters 51 and 53 (relating to classification and pay rates), 
the Secretary of the Treasury may, [for a period of 10 years 
after the date of enactment of this section] before July 23, 
2013, establish, fix the compensation of, and appoint 
individuals to, designated critical administrative, technical, 
and professional positions needed to carry out the functions of 
the Internal Revenue Service, if--
          (1)  * * *

           *       *       *       *       *       *       *


Sec. 9504. Recruitment, retention, relocation incentives, and 
                    relocation expenses

  (a) [For a period of 10 years after the date of enactment of 
this section] Before July 23, 2013 and subject to approval by 
the Office of Personnel Management, the Secretary of the 
Treasury may provide for variations from sections 5753 and 5754 
governing payment of recruitment, relocation, and retention 
incentives.
  (b) [For a period of 10 years after the date of enactment of 
this section] Before July 23, 2013, the Secretary of the 
Treasury may pay from appropriations made to the Internal 
Revenue Service allowable relocation expenses under section 
5724a for employees transferred or reemployed and allowable 
travel and transportation expenses under section 5723 for new 
appointees, for any new appointee appointed to a position for 
which pay is fixed under section 9502 or 9503 after June 1, 
1998.

Sec. 9505. Performance awards for senior executives

  (a) [For a period of 10 years after the date of enactment of 
this section] Before July 23, 2013, Internal Revenue Service 
senior executives who have program management responsibility 
over significant functions of the Internal Revenue Service may 
be paid a performance bonus without regard to the limitation in 
section 5384(b)(2) if the Secretary of the Treasury finds such 
award warranted based on the executive's performance.

           *       *       *       *       *       *       *

                              ----------                              


  SECTION 122 OF THE DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE 
        JUICIARY, AND RELATED AGENCICES APPROPRIATIONS ACT, 1998

                          (Public Law 105-119)

  Sec. 122. (a) * * *

           *       *       *       *       *       *       *

  (g)(1) Notwithstanding any other provision of law and subject 
to paragraph (2), the Secretary of the Treasury is authorized 
to establish, for a period of [8] 10 years from date of 
enactment of this provision, a personnel management 
demonstration project providing for the compensation and 
performance management of not more than a combined total of 950 
employees who fill critical scientific, technical, engineering, 
intelligence analyst, language translator, and medical 
positions in the Bureau of Alcohol, Tobacco and Firearms.

           *       *       *       *       *       *       *

                              ----------                              


          SECTION 203 OF THE JUDICIAL IMPROVEMENTS ACT OF 1990

SEC. 203. DISTRICT JUDGES FOR THE DISTRICT COURTS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Temporary Judgeships.--The President shall appoint, by 
and with the advice and consent of the Senate--
          (1) * * *

           *       *       *       *       *       *       *

Except with respect to the district of Kansas, the western 
district of Michigan, the eastern district of Pennsylvania, and 
the northern district of Ohio, the first vacancy in the office 
of district judge in each of the judicial districts named in 
this subsection, occurring 10 years or more after the 
confirmation date of the judge named to fill the temporary 
judgeship created by this subsection, shall not be filled. The 
first vacancy in the office of district judge in the district 
of Kansas occurring 16 years or more after the confirmation 
date of the judge named to fill the temporary judgeship created 
for such district under this subsection, shall not be filled. 
The first vacancy in the office of district judge in the 
western district of Michigan, occurring after December 1, 1995, 
shall not be filled. The first vacancy in the office of 
district judge in the eastern district of Pennsylvania, 
occurring 5 years or more after the confirmation date of the 
judge named to fill the temporary judgeship created for such 
district under this subsection, shall not be filled. The first 
vacancy in the office of district judge in the northern 
district of Ohio occurring [15] 20 years or more after the 
confirmation date of the judge named to fill the temporary 
judgeship created under this subsection shall not be filled. 
For districts named in this subsection for which multiple 
judgeships are created by this Act, the last of those 
judgeships filled shall be the judgeships created under this 
section.

           *       *       *       *       *       *       *

                              ----------                              


      SECTION 403 OF THE FEDERAL FINANCIAL MANAGEMENT ACT OF 1994

                          (Public Law 103-356)

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

  (a) * * *

           *       *       *       *       *       *       *

  [(f) Termination.--The provisions of this section shall 
expire on October 1, 2006.]
                              ----------                              


TITLE 31, UNITED STATES CODE

           *       *       *       *       *       *       *


                 CHAPTER 35--ACCOUNTING AND COLLECTION

                          SUBCHAPTER I--GENERAL

Sec.
3501.  Definition.
     * * * * * * *

                SUBCHAPTER V--PROCUREMENT PROTEST SYSTEM

     * * * * * * *
3557.  Expedited action in protests for public-private competitions.

           *       *       *       *       *       *       *


                SUBCHAPTER V--PROCUREMENT PROTEST SYSTEM

Sec. 3551. Definitions

  In this subchapter:
          (1) * * *
          [(2)(A) The term ``interested party'', with respect 
        to a contract or a solicitation or other request for 
        offers described in paragraph (1), means an actual or 
        prospective bidder or offeror whose direct economic 
        interest would be affected by the award of the contract 
        or by failure to award the contract.
          [(B) The term includes the official responsible for 
        submitting the Federal agency tender in a public-
        private competition conducted under Office of 
        Management and Budget Circular A-76 regarding an 
        activity or function of a Federal agency performed by 
        more than 65 full-time equivalent employees of the 
        Federal agency.]
          (2) The term ``interested party''--
                  (A) with respect to a contract or a 
                solicitation or other request for offers 
                described in paragraph (1), means an actual or 
                prospective bidder or offeror whose direct 
                economic interest would be affected by the 
                award of the contract or by failure to award 
                the contract; and
                  (B) with respect to a public-private 
                competition conducted under Office of 
                Management and Budget Circular A-76 regarding 
                performance of an activity or function of a 
                Federal agency, or a decision to convert a 
                function performed by Federal employees to 
                private sector performance without a 
                competition under OMB Circular A-76, includes--
                          (i) any official who submitted the 
                        agency tender in such competition; and
                          (ii) any one person who, for the 
                        purpose of representing them in a 
                        protest under this subchapter that 
                        relates to such competition, has been 
                        designated as their agent by a majority 
                        of the employees of such Federal agency 
                        who are engaged in the performance of 
                        such activity or function.

           *       *       *       *       *       *       *


Sec. 3557. Expedited action in protests for public-private competitions

  For protests in cases of public-private competitions 
conducted under Office of Management and Budget Circular A-76 
regarding performance of an activity or function of Federal 
agencies, the Comptroller General shall administer the 
provisions of this subchapter in a manner best suited for 
expediting final resolution of such protests and final action 
in such competitions.

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 1491 OF TITLE 28, UNITED STATES CODE

Sec. 1491. Claims against United States generally; actions involving 
                    Tennessee Valley Authority

  (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

  (5) If a private sector interested party commences an action 
described in paragraph (1) in the case of a public-private 
competition conducted under Office of Management and Budget 
Circular A-76 regarding performance of an activity or function 
of a Federal agency, or a decision to convert a function 
performed by Federal employees to private sector performance 
without a competition under Office of Management and Budget 
Circular A-76, then an official or person described in section 
3551(2)(B) of title 31 shall be entitled to intervene in that 
action.

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 604 OF THE FAIR CREDIT REPORTING ACT

Sec. 604. Permissible purposes of reports

  (a) In General.--Subject to subsection (c), any consumer 
reporting agency may furnish a consumer report under the 
following circumstances and no other:
          (1) * * *

           *       *       *       *       *       *       *

          (3) To a person which it has reason to believe--
                  (A) * * *

           *       *       *       *       *       *       *

                  (G) executive departments and agencies in 
                connection with the issuance of government-
                sponsored individually-billed travel charge 
                cards.

           *       *       *       *       *       *       *

                              ----------                              


DISTRICT OF COLUMBIA OFFICIAL CODE

           *       *       *       *       *       *       *


TITLE 2--GOVERNMENT ADMINISTRATION

           *       *       *       *       *       *       *


CHAPTER 16--PUBLIC DEFENDER SERVICE

           *       *       *       *       *       *       *


Sec. 2-1607. Appropriation; public grants and private contributions.

  (a) [There are authorized to be appropriated through the 
Court Services and Offender Supervision Agency for the District 
of Columbia (or, until such Agency assumes its duties pursuant 
to Sec. 24-133(a), through the Trustee appointed pursuant to 
Sec. 24-132) in each fiscal year such sums as may be necessary 
to carry out this chapter. Funds appropriated pursuant to this 
subsection shall be transmitted by the Agency (or, if 
applicable, by the Trustee) to the Service.] There are 
authorized to be appropriated to the Service in each fiscal 
year such funds as may be necessary to carry out this chapter. 
The Service may arrange by contract or otherwise for the 
disbursement of appropriated funds, procurement, and the 
provision of other administrative support functions by the 
General Services Administration or by other agencies or 
entities, not subject to the provisions of the District of 
Columbia Code or any law or regulation adopted by the District 
of Columbia Government concerning disbursement of funds, 
procurement, or other administrative support functions. The 
Service shall submit an annual appropriations request to the 
Office of Management and Budget.

           *       *       *       *       *       *       *


TITLE 24--PRISONERS AND THEIR TREATMENT

           *       *       *       *       *       *       *


CHAPTER 1--TRANSFER OF PRISON SYSTEM TO FEDERAL AUTHORITY

           *       *       *       *       *       *       *


SUBCHAPTER III--OFFENDER SUPERVISION AND PAROLE

           *       *       *       *       *       *       *


Sec. 24-133. Court Services and Offender Supervision Agency.

  (a) * * *

           *       *       *       *       *       *       *

  [(f) Receipt and Transmittal of Appropriations for Public 
Defender Service.--The Director of the Agency shall receive and 
transmit to the District of Columbia Public Defender Service 
all funds appropriated for such agency.]

           *       *       *       *       *       *       *


                              Rescissions

    Pursuant to the provisions of clause 3(f)(2) of rule XIII 
of the Rules of the House of Representatives, the following is 
submitted describing the rescissions recommended in the 
accompanying bill:

               Under Title I--Department of the Treasury

    Under the Department of the Treasury, ``Air Transportation 
Stabilization Program Account'', the Committee has included 
language to rescind all unobligated balances.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions proposed in the 
accompanying bill which may be considered, under certain 
circumstances, to change the application of existing law, 
either directly or indirectly. The bill provides that 
appropriations shall remain available for more than one year 
for a number of programs for which the basic authorizing 
legislation does not explicitly authorize such extended 
availability. The bill provides, in some instances, for funding 
of agencies and activities where legislation has not yet been 
finalized. In addition, the bill carries language, in some 
instances, permitting activities not authorized by law, or 
exempting agencies from certain provisions of law, but which 
has been carried in appropriations acts for many years.
    The bill includes several limitations on official 
entertainment, reception and representation expenses. Similar 
provisions have appeared in many previous appropriations Acts. 
The bill includes a number of limitations on the purchase of 
automobiles or office furnishings. Similar limitations have 
appeared in many previous appropriations Acts. Language is 
included in several instances permitting certain funds to be 
credited to the appropriations recommended.

                  TITLE I--DEPARTMENT OF THE TREASURY

    Language has been included for Departmental Offices, 
``Salaries and Expenses'', that provides funds for operation 
and maintenance of the Treasury Building and Annex; hire of 
passenger motor vehicles; maintenance, repairs, and 
improvements of, and purchase of commercial insurance policies 
for real properties leased or owned overseas; official 
reception and representation expenses; unforeseen emergencies 
of a confidential nature; Treasury-wide financial audits and 
the period of availability and the transfer of these funds; 
information technology modernization requirements; and 
specifying certain amounts for individual offices of the 
Departmental Offices and specifying transfer authority among 
offices.
    Language has been included for the Department-wide Systems 
and Capital Investments Program that provides funds for the 
development and acquisition of automated data processing 
equipment, software, and services; provides transfer authority; 
limits the availability of funds; and restricts the use of 
funds to support or supplement IRS Operations Support or 
Business Systems Management.
    Language has been included for the Office of Inspector 
General, ``Salaries and Expenses'', that provides funds to 
carry out the provisions of the Inspector General Act of 1978, 
including the hire of vehicles, and specifies amounts for 
official travel expenses, official reception and representation 
expenses, and unforeseen emergencies of a confidential nature.
    Language has been included for the Treasury Inspector 
General for Tax Administration, ``Salaries and Expenses'', that 
provides funds to carry out the provisions of the Inspector 
General Act of 1978, the purchase and hire of motor vehicles 
and services authorized by 5 U.S.C. 3109; and specifies amounts 
for travel expenses, official reception and representation 
expenses, and unforeseen emergencies of a confidential nature.
    Language has been included for the Air Transportation 
Stabilization Program Account to charge fees to a borrower 
associated with bankruptcy proceedings of the borrower.
    Language has been included for the Financial Crime 
Enforcement Network, ``Salaries and Expenses'', that provides 
funds for hire of vehicles; the travel and training of non-
federal and foreign government personnel attending meetings or 
training involving domestic or foreign financial law 
enforcement, intelligence, and regulation; a specific amount 
for official reception and representation expenses; the 
purchase of personal services contracts; and assistance to 
Federal law enforcement agencies with or without reimbursement. 
Language is also included that limits the availability of a 
certain amount.
    Language has been included for the Financial Management 
Service, ``Salaries and Expenses'', that provides a certain 
amount for official reception and representation expenses and 
limits the availability for systems modernization funds.
    Language has been included for the Alcohol and Tobacco Tax 
and Trade Bureau, ``Salaries and Expenses'', that provides 
funds for the hire of passenger motor vehicles and laboratory 
assistance to state and local agencies with or without 
reimbursement. Language is also included with specifies the 
amounts for official reception and representation expenses and 
cooperative research and development.
    Language has been included for the U.S. Mint, ``United 
States Mint Public Enterprise Fund'' that identifies the source 
of funding for the operations and activities of the U.S. Mint 
and specifies the level of funding for circulating coinage and 
protective service capital investments.
    Language has been included for the Bureau of the Public 
Debt, ``Administering the Public Debt'' that specifies funds 
for official reception and representation expenses and systems 
modernization; and provides that appropriations from the 
General Fund will be reduced as fees are collected, and that a 
portion of the funds are to be derived from the Oil Spill 
Liability Trust Fund for administration of the Fund.
    Language is included for the Community Development 
Financial Institutions Fund Program Account that provides for 
services authorized by 5 U.S.C. 3109 but at certain rates; 
specific amounts for administrative expenses, the cost of 
direct loans, and administrative expenses to carry our the 
direct loan program; the cost of direct loans; and the 
principal amount of the direct loans.
    Language is included under Internal Revenue Service, 
``Taxpayer Services'' that provides funds for pre-filing 
assistance and education, filing account services, taxpayer 
advocacy services, services authorized by 5 U.S.C. 3109; and 
dedicating funding for the Tax Counseling for the Elderly 
Program and low-income taxpayer clinic grants.
    Language is included for Internal Revenue Service, 
``Enforcement'' that provides funds to provide legal and 
litigation support, conduct criminal investigations, enforce 
criminal statutes, purchase and hire of vehicles, provide 
services authorized by 5 U.S.C. 3109; dedicating funding for 
the Interagency Crime and Drug Enforcement program and 
associated transfer authority.
    Language is included for the Internal Revenue Service, 
``Operations Support'' that provides funds for operating and 
supporting taxpayer services and tax law enforcement programs; 
rent; facilities services; printing; postage; physical 
security; headquarters and other IRS-wide administration 
activities; research and statistics of income; 
telecommunications; information technology development, 
enhancement, operations, maintenance, and security; hire of 
passenger motor vehicles; services authorized by 5 U.S.C. 3109; 
and dedicating funding for information technology support, 
research, the IRS Oversight Board, and official reception and 
representation expenses.
    Language has been included for Internal Revenue Service, 
``Business Systems Modernization'' that provides for the 
business systems modernization program, including capital asset 
acquisition of information technology, including management and 
related contractual costs of said acquisitions, including 
contractual costs associated with operation authorized by 5 
U.S.C. 3109 and that restricts the use of the funds.
    Language is included for the Internal Revenue Service, 
``Health Insurance Tax Credit Administration'' to implement the 
health insurance tax credit included in the Trade Act of 2002 
(Public Law 107-210).

              TITLE II--EXECUTIVE OFFICE OF THE PRESIDENT

    Language under the Executive Office of the President and 
Funds Appropriated to the President, ``Compensation of the 
President'', provides that unused amounts of the President's 
expense allowance will revert to the Treasury; mandates funds 
are only available for their stated purpose; and specifies an 
amount for an expense allowance.
    Language under the White House Office, ``Salaries and 
Expenses'', provides funds for services authorized by 5 U.S.C. 
3109, subsistence expenses, hire of vehicles, newspapers, 
periodicals, teletype news service, travel, and official 
entertainment expenses. Language is also included specifying 
funds available for the Privacy and Civil Liberties Oversight 
Board.
    Language under the Executive Residence at the White House, 
``Operating Expenses'', provides funds for official 
entertainment expenses of the President, and the care, 
maintenance, repair and alteration, refurnishing, improvement, 
heating, and lighting, including electric power and fixtures, 
of the Executive Residence at the White House.
    Language under the Executive Residence at the White House, 
``Reimbursable Expenses'', specifies the authorized use of 
funds; specifies that reimbursable expenses are the exclusive 
authority of the Executive Residence to incur obligations and 
receive offsetting collections; requires the sponsors of 
political events to make advance payments; requires the 
national committee of the political party of the President to 
maintain $25,000 on deposit; requires the Executive Residence 
to ensure that amounts owed are billed within 60 days of a 
reimbursable event and collected within 30 days of the bill 
notice; authorizes the Executive Residence to charge and assess 
interest and penalties on late payments; authorizes all 
reimbursements to be deposited into the Treasury as a 
miscellaneous receipt; requires a report to the Committee on 
the reimbursable expenses within 90 days of the end of the 
fiscal year; requires the Executive Residence to maintain a 
system for tracking and classifying reimbursable events; and 
specifies that the Executive Residence is not exempt from the 
requirements of subchapter I or II of chapter 37 of title 31, 
United States Code.
    Language under White House Repair and Restoration provides 
funds for the repair, alteration, improvement, required 
maintenance, safety and health issues, and continued 
preventative maintenance of the Executive Residence at the 
White House and provides that funds remain available until 
expended.
    Language under Office of Administration, ``Salaries and 
Expenses'', provides funds for continued modernization of the 
information technology infrastructure within the Executive 
Office of the President, to remain available until expended.
    Language under Office of Management and Budget, ``Salaries 
and Expenses'', provides funds for expenses, the hire of 
vehicles, carrying out provisions of chapter 35 of 44 U.S.C.; 
specifies funds for official representation expenses; directs 
that funds shall be applied only to items for which 
appropriations were made; prohibits the review of agricultural 
marketing orders and the alteration of certain testimony; 
prohibits the use of funds for the purpose of altering the 
transcript of testimony except for non-OMB officials; and 
specifies the amount of time to perform budgetary policy 
reviews of water resource matters on which the Chief of 
Engineers has reported before the report is considered 
approved, and specifies notification requirements.
    Language under the Office of National Drug Control Policy, 
``Salaries and Expenses'', provides funds for expenses, 
research, official reception and representation expenses, 
participation in joint projects, and allows for the acceptance 
of gifts. Language is also included providing funds for policy 
research and evaluation and making these funds available until 
expended.
    Language under the Counterdrug Technology Assessment Center 
provides funds for counternarcotics research and development 
and the technology transfer program, directs funds to supply 
reduction activities, and provides for the transfer of funds to 
other Federal departments or agencies.
    Language under the Federal Drug Control Programs, ``High 
Intensity Drug Trafficking Areas Program'', provides a certain 
level of funding for State, local and Federal drug control 
efforts, and provides for the transfer of funds to Federal 
agencies and departments. Language is also included specifying 
the amount of funds for auditing and associated activities, 
directing funding to be no less than prior year initial 
allocation levels unless the Director of the Office of National 
Drug Control policy submits a request to the Committees on 
Appropriations, and regarding the availability of funds.
    Language under Other Federal Drug Control Programs provides 
funds to support a national anti-drug campaign for youth, a 
national media campaign, matching grants to drug-free 
communities (with an amount specified to be made available as 
directed by section 4 of Public Law 107-82, as amended by 
Public Law 109-469), the National Drug Court Institute, section 
1105 of Public Law 109-469, the U.S. Anti-Doping Agency, the 
U.S. membership dues to the World Anti-Doping Agency, and 
evaluation and research related to National Drug Control 
Program performance measures; limits the availability of funds; 
requires a certain level of funding for non-advertising 
services of the media campaign and the continuation of the 
corporate outreach program; provides for the transfer of some 
funds to other Federal departments and agencies; and specifies 
conditions for national media campaign funds.
    Language under Special Assistance to the President and the 
Official Residence of the Vice President, ``Salaries and 
Expenses'', enables the Vice President to provide assistance to 
the President, services authorized by 5 U.S.C. 3109 and 3 
U.S.C. 106, subsistence, and the hire for vehicles.
    Language under Special Assistance to the President and the 
Official Residence of the Vice President, ``Operating 
Expenses'', provides funds for operation and maintenance of the 
official residence of the Vice President, the hire of vehicles, 
official entertainment expenses and provides for the transfer 
of funds as necessary.

                        TITLE III--THE JUDICIARY

    Under Supreme Court, ``Salaries and expenses'' language is 
included permitting certain funds to remain available until 
expended and specifying certain amounts for specific purposes.
    Under Supreme Court, ``Care of the Building and Grounds'' 
language is included permitting funds to remain available until 
expended.
    Under Courts of Appeals, District Courts, and Other 
Judicial Services, ``Salaries and Expenses'' language is 
included specifying certain funds remain available until 
expended for specific purposes. Language is also included 
providing funding from the Vaccine Injury Compensation Trust 
Fund for certain purposes.
    Under Defender Services, language is included permitting 
funds to remain available until expended.
    Under Fees of Jurors and Commissioners, language is 
included permitting funds to remain available until expended 
and specifying limitations for the compensation of land 
commissioners.
    Under Court Security, language is included permitting 
certain funds to remain available until expended, which may be 
transferred to the United States Marshals Service.
    Under Administrative Office of the United States Courts, 
``Salaries and expenses'' language is included specifying 
certain amounts for official reception and representation 
expenses.
    Under Federal Judicial Center, ``Salaries and expenses'' 
language is included permitting certain funds to remain 
available until expended for education and training, and 
specifying certain amounts for official reception and 
representation expenses.
    Under Judicial Retirement Funds, ``Payment to Judiciary 
Trust Funds'' language is included specifying certain amounts 
for payments to specific trust funds.
    Under United States Sentencing Commission, ``Salaries and 
expenses'' language is included specifying certain amounts for 
official reception and representation expenses.

                     TITLE IV--DISTRICT OF COLUMBIA

    Language under ``Federal Payment for Resident Tuition 
Support'' provides that the amount appropriated shall remain 
available until expended; specifies conditions for the use, 
award, and financial accounting of funds; requires a quarterly 
financial report; and specifies the amount available for 
administrative expenses.
    Language under ``Federal Payment for Emergency Planning and 
Security Costs in the District of Columbia'' provides that the 
amount appropriated shall remain available until expended, is 
available for reimbursement for certain events, and is 
available only after it has been apportioned pursuant to 
chapter 15 of title 31, U.S.C. and specifies certain amounts 
for certain purposes.
    Language under ``Federal Payment to the District of 
Columbia Courts'': (1) provides that all amounts under this 
heading shall be apportioned quarterly by the Office of 
Management and Budget and obligated and expended in the same 
manner as funds appropriated for salaries and expenses of other 
Federal agencies, with payroll and financial services to be 
provided on a contractual basis with the General Services 
Administration; (2) specifies certain amounts for specific 
purposes; (3) allows funds made available for capital 
improvements to remain available until September 30, 2008; and 
(4) provides for the reallocation of funds.
    Language under ``Defender Services in the District of 
Columbia Courts'': (1) provides that the amount appropriated 
shall remain available until expended; (2) authorizes funds 
provided in other appropriations to be used for payments under 
this heading; (3) specifies who shall administer these funds; 
and (4) provides that all amounts under this heading shall be 
apportioned quarterly by the Office of Management and Budget 
and obligated and expended in the same manner as funds 
appropriated for salaries and expenses of other Federal 
agencies, with payroll and financial services to be provided on 
a contractual basis with the General Services Administration.
    Language under ``Federal Payment to the Court Services and 
Offender Supervision Agency for the District of Columbia'': (1) 
specifies certain amounts for specific purposes and programs; 
(2) provides that all amounts under this heading shall be 
apportioned quarterly by the Office of Management and Budget 
and obligated and expended in the same manner as funds 
appropriated for salaries and expenses of other Federal 
agencies; (3) authorizes the Director to accept and use gifts 
to support offender and defendant programs and equipment and 
vocational training services to educate and train offenders and 
defendants, and details for recording the acceptance of such 
gifts; and (4) authorizes the Director to charge fees to cover 
the costs of training and materials distributed at conferences.
    Language under ``Federal Payment to District of Columbia 
Public Defender Service'' provides that all amounts under this 
heading shall be apportioned quarterly by the Office of 
Management and Budget and obligated and expended in the same 
manner as funds appropriated for salaries and expenses of other 
Federal agencies.
    Language under ``Federal Payment to the District of 
Columbia Water and Sewer Authority'' provides that the amount 
appropriated shall remain available until expended and 
specified amounts shall be matched by the District and WASA.
    Language under ``Federal Payment to the Criminal Justice 
Coordinating Council'' provides that the amount appropriated 
shall remain available until expended to support initiatives 
related to the coordination of Federal and local criminal 
justice resources.
    Language under ``Federal Payment to the Office of the Chief 
Financial Officer of the District of Columbia'' provides that 
each entity receiving funds submit to the Office of the Chief 
Financial Officer (CFO) a report, and that the CFO submit a 
report to the Committees on Appropriations.
    Language under ``Federal Payment for School Improvement'' 
provides certain amounts for specific purposes, including funds 
to expand quality public charter schools in the District of 
Columbia, which shall remain available until September 20, 
2008.
    Language under ``Federal Payment for Consolidated 
Laboratory Facility'' provides amounts for certain purposes and 
specifies that a matching amount will be provided by the 
District of Columbia.
    Language under ``Federal Payment for Central Library and 
Branch Locations'' provides amounts for certain purposes and 
are available until expended.
    Language under ``Federal Payment to Reimburse the Federal 
Bureau of Investigation'' provides amounts for certain purposes 
and makes them available until September 30, 2010.
    Language under ``District of Columbia Funds'' (1) limits 
the amount provided in this Act for the District of Columbia; 
(2) identifies the source of funds, including a rescission of 
prior year local funds; (3) establishes the District's 
intradistrict authority; (4) sets funds subject to the 
provisions of and allocated and expended as proposed in the 
fiscal year 2007 District of Columbia Budget and Financial 
Plan; (5) provides conditions for increasing the amount 
provided; and (6) directs the Chief Financial Officer to assure 
the District of Columbia meets all requirements, but prohibits 
the reprogramming of capital projects.

                     TITLE V--INDEPENDENT AGENCIES

    Language is included for the Consumer Product Safety 
Commission, ``Salaries and Expenses'' that provides funds for 
expenses, the hire of motor vehicles, services as authorized by 
5 U.S.C. 3109 (with a limitation on rates for individuals), 
nominal awards, and official reception and representation 
expenses.
    Language is included for the Election Assistance 
Commission, ``Salaries and Expenses'' that allows for the 
transfer of funds to the National Institute of Standards and 
Technology for election reform activities.
    Language is included for the Election Assistance 
Commission, ``Election Reform Programs'' for requirements 
payments under section 257 of Public Law 107-252, but only for 
States that file a new State plan. Funds are also made 
available for the Help America Vote College Program and the 
National Student and Parent Mock Election, as authorized under 
Public Law 107-252.
    Language is included under the Federal Communications 
Commission, ``Salaries and Expenses'', permitting funds for 
uniforms and allowances therefor, official reception and 
representation expenses, purchase and hire of motor vehicles, 
and special counsel fees. Language provides for the assessment 
and collection of offsetting collections, authorizes retention 
of such collections, and provides that they remain available 
until expended. Language removes the availability for 
obligation of excess collections. Language waives existing law 
concerning proceeds from the use of a competitive bidding 
system. Language is also included regarding the transfer of 
funds from the Universal Service Fund.
    Language is included for the Federal Deposit Insurance 
Corporation, ``Office of Inspector General'' that provides for 
the funds to be derived from the Bank Insurance Fund, the 
Savings Association Insurance Fund, and the FSLIC Resolution 
Fund, or any successor to these funds.
    Language is included for the Federal Election Commission, 
``Salaries and Expenses'' that specifies funds for internal 
automated data processing systems and reception and 
representation expenses.
    Language is included for the Federal Labor Relations 
Authority, ``Salaries and Expenses'' that provides funds for 
services authorized by 5 U.S.C. 3109, the hire of experts and 
consultants, hire of motor vehicles, and the rental of 
conference rooms; authorizes travel payments to public members 
of the Federal Service Impasses Panel; and allows for fees 
collected to be transferred to and merged with the 
appropriation.
    Language is included for the Federal Trade Commission, 
``Salaries and Expenses'' permitting funds for uniforms and 
allowances therefor, services authorized by 5 U.S.C. 3109, 
official reception and representation expenses, hire of motor 
vehicles, and contract for collection services. Language 
provides for the crediting and retention of certain fees. 
Language also prohibits funds from being used to implement 
subsection (e)(2)(B) of section 43 of the Federal Deposit 
Insurance Act.
    Language is included for the General Services 
Administration, ``Federal Buildings Fund'' that allows for 
revenues and collections to be deposited in the Fund; specifies 
the conditions under which funds made available can be used and 
designates certain projects that can be undertaken; limits the 
availability of funds; and requires the approval to change the 
amounts identified. Many technical provisions have been 
included regarding use of funds in the Federal Buildings Fund 
that are not specifically authorized by law. Language has been 
included that limits project funds available for construction 
and repair and alteration of buildings not authorized by law. A 
more detailed analysis of the Federal Buildings Funds can be 
found in the General Services Administration chapter of this 
report.
    Language is included for General Services Administration, 
``Policy & Operation's'' that provides funds for policy and 
evaluation activities associated with the management of real 
and personal property assets and certain administrative 
services; support responsibilities relating to acquisition, 
telecommunications, information technology management, and 
related technology activities; and services authorized by 5 
U.S.C. 3109.
    Language is also included that provides funds for expenses 
for activities associated with personal and real property; 
technology management and activities; information access 
activities; agency-wide policy direction and management; other 
support services; and official reception and representation 
expenses.
    Language is included for the General Services 
Administration, ``Office of Inspector General'' that provides 
funds for information and detection of fraud; and for awards in 
recognition of efforts that enhance the office.
    Language is included for the General Services 
Administration, ``Electronic Government Fund'' that provides 
funds for conducting activities electronically, limits the 
availability of funds, and allows these funds to be 
transferred.
    Language is included for the General Services 
Administration, ``Allowances and Office Staff for Former 
Presidents'' that allows a portion of these funds to be 
transferred.
    Language is included for the General Services 
Administration, ``Federal Citizen Information Center Fund'' 
that authorizes funds to be deposited in the Fund and limits 
the availability of funds in the Fund.
    Language is included for the Merit Systems Protection 
Board, ``Salaries and Expenses'', that provides funds for 
services authorized by 5 U.S.C. 3109, rental of conference 
rooms, hire of passenger motor vehicles, direct procurement of 
survey printing, official reception and representation 
expenses, and administrative expenses to adjudicate retirement 
appeals, and provides for the transfer of some funds.
    Language is included for the Morris K. Udall Scholarship 
and Excellence in National Environmental Policy Foundation, 
``Morris K. Udall Scholarship and Excellence in National 
Environmental Policy Trust Fund'', that limits the availability 
of funds, specifies an amount for financial audits, and 
provides for the transfer of some funds.
    Language is included for the Morris K. Udall Scholarship 
and Excellence in National Environmental Policy Foundation, 
``Environmental Dispute Resolution Fund'' that limits the 
availability of funds.
    Language is included for National Archives and Records 
Administration, ``Operating Expenses'', that provides funds for 
the hire of passenger motor vehicles, activities of the Public 
Interest Declassification Board, and the review and 
declassification of documents; and authorizes the use of excess 
funds from the amount borrowed for construction for certain 
purposes.
    Language is included for National Archives and Records 
Administration, ``Electronic Records Archives'' that provides 
funds for the development of electronic records archives, 
research and analysis, design, development and program 
management; and limits the availability of funds.
    Language is included for National Archives and Records 
Administration, ``Repairs and Restoration'' that provides funds 
for the repair, alteration, improvement, and storage; and 
limits the availability of funds.
    Language is included for National Archives and Records 
Administration, ``National Historical Publications and Records 
Commission Grants Program'' that provides funds for allocations 
and grants for historical publications and records; provides of 
the transfer of funds for operating expenses; and limits the 
availability of funds.
    Language is included under the National Credit Union 
Administration, ``Central Liquidity Facility'' that limits 
gross obligations and administrative expenses.
    Language is included under the National Credit Union 
Administration, ``Community Development Credit Union Revolving 
Loan Fund'' that provides funds for technical assistance and 
limits the availability of funds.
    Language is included under Office of Government Ethics, 
``Salaries and Expenses'' that provides funds for services 
authorized by 5 U.S.C. 3109, rental of conference rooms, hire 
of passenger motor vehicles, and official reception and 
representation expenses.
    Language is included under Office of Personnel Management, 
``Salaries and Expenses'' that provides funds for services 
authorized by 5 U.S.C. 3109, medical examinations for veterans, 
rental of conference rooms, hire of passenger motor vehicles, 
official reception and representation expenses, advances for 
reimbursements, payment of per diem and/or subsistence 
allowances, the Enterprise Human Resources Integration project, 
the Human Resources Line of Business project, the E-Payroll 
project, the E-Training program, and the transfer of 
administrative expenses; limits the availability of some funds; 
directs that provisions shall not affect other authorities; 
prohibits for the Legal Examining Unit; and authorizes the 
acceptance of donations under certain conditions.
    Language is included for Office of Inspector General, 
``Salaries and Expenses'' that provides funds for services 
authorized by 5 U.S.C. 3109, hire of passenger motor vehicles, 
rental of conference rooms, and the transfer of administrative 
expenses.
    Language is included for Payment to Civil Service 
Retirement and Disability Fund that authorizes payments of 
certain annuities from the Civil Service Retirement and 
Disability Fund.
    Language is included for Office of Special Counsel, 
``Salaries and Expenses'' that provides funds for services 
authorized by 5 U.S.C. 3109, payment of fees and expenses for 
witnesses, rental of conference rooms, and the hire of 
passenger motor vehicles.
    Language is included for Securities and Exchange 
Commission, ``Salaries and Expenses'' that provides for rental 
of space, reception and representation expenses, a permanent 
secretariat for the International Organization of Securities 
Commissions, and consultations and meetings hosted by the 
Commission. Language is included that provides for the 
crediting of offsetting collections and unobligated balances of 
funds previously appropriated.
    Language is included for Selective Service System, 
``Salaries and Expenses'' that provides funds for attendance of 
meetings, training, uniforms, hire of passenger motor vehicles, 
services authorized by 5 U.S.C. 3109, and official reception 
and representation expenses; authorizes certain exemptions 
under certain conditions; and prohibits funds used in 
connection with the induction of any person into the Armed 
Forces of the United States.
    Language is included for Small Business Administration, 
``Salaries and Expenses'', that provides for hire of motor 
vehicles and official reception and representation expenses. 
Language is also included to provide authority to charge fees 
and credit such fees to the account without further 
appropriation.
    Language is included for Small Business Administration, 
``Business Loans Program Account'', limiting commitments for 
certain guarantee loan programs. Language is also included 
authorizing the transfer of funds for administrative expenses.
    Language is included for Small Business Administration, 
``Direct Loans Program Account'' that provides for the transfer 
of funds to ``Office of Inspector General'' and to ``Salaries 
and Expenses'', as well as specifying the treatment of certain 
transfers as a reprogramming of funds.
    Language is included under ``Administrative Provision--
Small Business Administration'' authorizing transfer of funds 
between Small Business Administration appropriations.
    Language is included for the United States Interagency 
Council on Homelessness, ``Operating Expenses'' that provides 
funds for salaries, travel, hire of passenger motor vehicles, 
rental of conference rooms, and the employment of experts and 
consultants.
    Language is included for the United States Postal Service, 
``Payment to the Postal Service Fund'' that provides funds for 
revenue foregone; limits the availability of obligation of some 
funds; stipulates that mail for overseas voting and mail for 
the blind is free; stipulates that 6-day delivery and rural 
mail delivery shall continue at not less than the 1983 level; 
prohibits funds from being used to charge a fee to a child 
support enforcement agency seeking the address of a postal 
customer; and prohibits funds from being used to consolidate or 
close small rural and other small post offices.
    Language is included for the United States Tax Court, 
``Salaries and Expenses'' that provides funds for contract 
reporting and services authorized by 5 U.S.C. 3109; and that 
travel expenses of the judges shall be paid upon written 
certificate of the judge.

                 ADMINISTRATIVE AND GENERAL PROVISIONS

    Sections 101, 111, 112, 201, and 302 include legislative 
transfer authorities.
    Section 811 may be construed as placing a legislative 
limitation on the use of funds in the bill.
    Sections 102, 103, 104, 105, 110, 113, 115, 118, 202, 301, 
303, 304, 501, 502, 503, 504, 505, 506, 601, 603, 604, 605, 
606, 607, 608, 609, 610, 611, 612, 614, 620, 621, 702, 703, 
704, 705, 706, 707, 708, 713, 715, 716, 719, 724, 729, 731, 
732, 737, 739, 742, 743, 744, 801, 802, 803, 804, 805, 806, 
808, 809, 810, 813, 815, 816, 817, 818, 819, 820, 821, 822, and 
824 establish affirmative directions, confer new authorities, 
or impose new responsibilities on departments or agencies 
funded by the bill.
    Sections 106, 114, 117, 701, 709, 710, 717, 718, 720, 721, 
722, 723, and 740 do not apply solely to the appropriations 
within this bill.
    Sections 733 and 814 propose to state a legislative 
position.
    Section 730 repeals existing law.
    Sections 613, 617, 619, 712, 714, 725, 726, 727, 728, 734, 
735, 736, 738, and 807 waive existing law.
    Sections 107, 108, 109, 116, 305, and 823 amend existing 
law.

                 Comparison With the Budget Resolution

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(1)(A) of the 
Congressional Budget Act of 1974 (Public Law 93-344), the 
following table compares the levels of new budget authority 
provided in the bill with the appropriate allocation under 
section 302(b) of the Budget Act.

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                302(b) allocation                         This bill
                                     ---------------------------------------------------------------------------
                                       Budget authority       Outlays        Budget authority       Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary.......................             21,028             21,650             21,434             21,359
Mandatory...........................             21,394             21,388             21,394            21,388
----------------------------------------------------------------------------------------------------------------
Note.--The amounts in this bill are technically in excess of the subcommittee section 302(b) suballocation.
  However, pursuant to section 207(d) of the congressional budget resolution for fiscal year 2008, increases to
  the Committee's section 302(a) allocation are authorized for funding in the reported bill for program
  integrity initiative spending relating to Internal Revenue Service tax compliance. After the bill is reported
  to the House, the Chairman of the Committee on the Budget will provide an increased section 302(a) allocation
  consistent with the funding provided in the bill. That new allocation will eliminate the technical difference
  prior to floor consideration.

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget Act of 1974, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill as provided to the Committee 
by the Congressional Budget Office.

                        [In millions of dollars]
------------------------------------------------------------------------
                                                            Outlays
------------------------------------------------------------------------
2008.................................................             38,300
2009.................................................              3,129
2010.................................................                537
2011.................................................                263
2012 and future years................................                187
------------------------------------------------------------------------

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget Act of 1974, the Congressional Budget 
Office has provided the following estimates of new budget 
authority and outlays provided by the accompanying bill for 
financial assistance to State and local governments.

                        [In millions of dollars]
------------------------------------------------------------------------
                                     Budget Authority       Outlays
------------------------------------------------------------------------
Financial assistance to State and                 668                467
 Local governments for 2008.......
------------------------------------------------------------------------

                                Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, this bill, as reported, contains the 
following congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in clause 9(d), 9(e), or 
9(f) of rule XXI.


                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the Rules of the House of Representatives, the result of each 
roll call vote on an amendment or on a motion to report, 
together with the names of those voting for and those voting 
against, are to be printed.
    There were no roll call votes.

      Comparative Statement of New Budget (Obligational) Authority

    The following table provides a detailed summary, for each 
Department and agency, comparing the amounts recommended in the 
bill with fiscal year 2007 enacted amounts and budget estimates 
presented for fiscal year 2008:



     ADDITIONAL VIEWS OF THE HON. JERRY LEWIS AND HON. RALPH REGULA

    The Financial Services and General Government 
Appropriations Bill provides $21,434,000,000 in discretionary 
budget authority, which is $242,898,000 below the President's 
budget request, and $1,916,125,000 above fiscal year 2007. The 
bill provides funding for a diverse number of agencies 
performing activities such as regulating the financial and 
telecommunications industries, collecting taxes and providing 
taxpayer assistance, providing capital to small businesses and 
disadvantaged communities, supporting the operations of the 
White House and Federal Judiciary, providing Federal payments 
to the District of Columbia, operating and maintaining Federal 
buildings, managing the Federal workforce, assisting in the 
administration of Federal elections, and protecting consumers 
and investors. While the bill provides significant increases 
for many of these activities, in total the bill provides 
funding below the level requested by the Administration. We 
appreciate that the Subcommittee Chairman allowed the Minority 
to provide input into drafting the bill.
    The bill provides important increases for the Internal 
Revenue Service (IRS) in order to close the nearly $300 billion 
tax gap, which is the difference between the amount of taxes 
owed and amount actually paid. We support the funds provided in 
the bill to enhance taxpayer services, tax enforcement, and 
information technology capabilities at the IRS. However, we are 
concerned that the bill includes a restrictive $1,000,000 
limitation on expenditures associated with private debt 
collections. This program, authorized by the American Jobs 
Creation Act, is estimated to collect $1.4 billion in taxes 
over ten years. Additionally, while the bill fully funds the 
IRS' enforcement request, it does not provide funding over the 
budget request to compensate for the limitation on private debt 
collections. It should also be noted that the Inspector General 
for Tax Administration reviewed the private debt collection 
program and stated that the ``IRS has taken proactive measures 
to effectively develop and implement the Program''.
    The bill provides $226,000,000 for the Office of National 
Drug Control Policy's High Intensity Drug Trafficking Areas 
(HIDTA) program. We are supportive of this funding level for 
HIDTA which is $1,270,000 above the current year and $6,000,000 
above the request. With the rise in violent crime across the 
country, it is important that this program receive adequate 
funding.
    The bill provides $225,166,000 for the operations of the 
Office of Personnel Management (OPM), which is $1,015,000 above 
fiscal year 2007 and $11,465,000 above the budget request. The 
Committee heard testimony that 60 percent of the Federal 
workforce will be eligible to retire in the next ten years. We 
look forward to continuing to work with the Chairman and OPM to 
ensure that the Federal government is prepared to address this 
retirement wave.

                               EDUCATION

    We are supportive of the financial education initiatives 
included in the bill for the Department of Treasury's Office of 
Financial Education, the IRS, and the Securities and Exchange 
Commission. We hope to work with the Chairman to further 
develop these initiatives as the bill moves through the 
appropriations process to ensure maximum programmatic impact.
    The bill provides funding to improve education in the 
District of Columbia including $35,100,000 for college tuition 
assistance, $40,800,000 for school improvement, and $10,000,000 
to improve libraries. These funds will help support the Mayor's 
efforts to address the problems of the District of Columbia 
school system. Improving education in the District of Columbia 
will enhance the City's future by providing children with 
opportunities. We support the funding that has been included in 
the bill and look forward to working with the Chairman to help 
the Mayor and City Council in their reform efforts.

                           SERRANO AMENDMENT

    We were supportive of the Chairman's Subcommittee mark for 
the Small Business Administration (SBA) which provides 
$100,000,000 for Small Business Development Centers. However, 
we are disappointed that the Serrano amendment offered in Full 
Committee was adopted. This amendment provided $80,000,000 to 
subsidize 7(a) business loans. The adoption of this amendment 
ignores the fact that the 7(a) program has been operating at 
record levels without a subsidy appropriation since the 
beginning of fiscal year 2005. Past practice has proven that 
subsidies limit access to SBA loans if demand for loans exceeds 
the availability of appropriations. In many past years, SBA has 
been forced to temporarily shut the program down or impose loan 
limits in order to live within available appropriations. During 
the 1990s, the average loan approval volume was 40,181 loans 
totaling $8.6 billion in loans per year. Since it became a zero 
subsidy loan program, loan approvals increased to 95,900 loans 
and $15.2 billion in fiscal year 2005 and 97,200 approved loans 
and $13.8 billion in fiscal year 2006. In testimony before the 
Committee, the SBA Administrator testified that ``With the zero 
subsidy operation in place the program has been able to expand 
without the threat of a shut down. Zero subsidy is good 
stewardship of taxpayers' money while creating a more stable 
loan program for small business.'' It is irresponsible during 
times of budget deficits for Congress to provide appropriations 
to programs that do not need Federal funding. The absence of 
appropriations for 7(a) loans does not hurt the operation of 
the program.
    In addition, this amendment cut important funding from 
General Services Administration's (GSA) Federal Buildings Fund 
repairs and alterations account. GSA's current backlog of 
repairs and alterations of Federal buildings is estimated at 
$6,600,000,000. The fiscal year 2008 request is considered a 
minimum to operate and maintain GSA's assets. Limiting repairs 
and alterations funding forces GSA to house Federal workers in 
more commercial leases rather than continue in government-owned 
buildings at a net cost to the U.S. taxpayer. Cutting an 
additional $31,000,000 from this account just digs the GSA into 
a deeper hole and only delays much needed repairs for buildings 
into the next fiscal year.
    The amendment also cuts $29,000,000 from the U.S. Postal 
Service revenue foregone account. Failure to fund this 
authorized appropriation places the remaining debt of more than 
$800,000,000 at risk of nonpayment, significantly increasing 
postal costs. As the Postal Service works to address its long-
term obligations in a responsible manner, it is 
counterproductive to increase those costs through nonpayment of 
a debt already deferred by interest free installment payments 
spread over a period of 42 years. This funding paid for past 
political mailings by both political parties, mailings of non-
profit organizations and free mail for blind persons and 
overseas ballots. The failure to provide funds for these 
services will require the Postal Service to record these 
obligations as a bad debt and will unfairly transfer these 
costs to postage ratepayers. Cutting $29,000,000 from the 
revenue forgone account is the equivalent of Congress not 
following its own directives.

                     ELECTION ASSISTANCE COMMISSION

    We are also concerned that the bill includes $300,000,000 
in unrequested funding for election assistance grants. While 
the Help America Vote Act of 2002 authorized $3.9 billion for 
grants to the States to improve their voting systems, no 
funding is authorized to be appropriated for this purpose in 
fiscal year 2008. With Presidential primaries beginning in 
January, it seems unlikely that these funds could possibly be 
used effectively before the 2008 election season begins. It 
should also be noted that the Election Assistance Commission 
has recently reported to the Committee that as of the end of 
October, the States had more than $1.3 billion in available 
balances from prior year appropriations.

                            REPORT LANGUAGE

    The front of the Committee report accompanying this bill 
complains that since 1980, non-defense discretionary spending 
has declined as a percentage of gross domestic product making 
it ``not surprising that government is unable to meet many 
basic needs''. However, it should be noted that non-defense 
discretionary budget authority has increased by 157 percent 
from 1980 to 2007. This is an average increase of almost 6 
percent per year. The idea that a 6 percent per year increase 
in spending is not sufficient is difficult to understand. 
Additionally, the Committee report does not mention that gross 
domestic product has grown in real terms by 121 percent from 
1980 to 2006. Clearly, the economy has remained strong over the 
long term.
    The front of the Committee report accompanying this bill 
also states that ``the Federal workforce has been under 
attack''. While we believe that the Administration needs to 
continue to work to improve management of the Federal workforce 
including enhancing programs to attract and retain professional 
staff and reward performance, stating that the Federal 
workforce is under attack is an exaggeration. The Committee 
heard testimony from the Office of Personnel Management that 
they have 1.9 million resumes on file and send over 260,000 
emails daily to people seeking Federal employment. If the 
Federal workforce were truly under attack, why would so many 
people seek Federal employment?

                               CONCLUSION

    We appreciate that the bill provides a level of funding 
below the budget request and hope that it can be improved as it 
moves forward through the appropriations process. Additionally, 
we hope that the final bill will remain free of controversial 
policy riders that will result in a veto by the President.

                                   Jerry Lewis.
                                   Ralph Regula.