Senators Nickles and Conrad - February 28, 2003 We have documented a precipitous decline in the international affairs budget that began in the mid-1980s and continued after the end of the Cold War. Foreign policy resources today remain, in real terms, 32 percent below the peak year of 1985. Even with some recent increases, the foreign policy FY 2003 budget as enacted represents only about 3.4% of total government discretionary spending, the smallest share in over 25 years. Although important progress is made in some areas, we believe the administration's $28.6 billion international affairs request for FY 2004 provides insufficient resources. We in the legislative branch share the responsibility. It was not until a few weeks ago that Congress passed the FY 2003 appropriations for the 150 account, giving the administration no time to request that cuts made in the omnibus be restored in the follow-on budget. The administration's budget proposal is $3.2 billion, or 12.5%, above amounts recently enacted in the omnibus appropriation. But three important initiatives not part of the FY2003 baseline make up the bulk of the increase: the Global AIDS Initiative, the Millennium Challenge Account (MCA), and debt reduction. The administration is also proposing a Famine Fund and a Complex Contingency Fund as new requests. For much of the rest of Budget Function 150, the FY 2004 request would provide small increases, or in some cases cut funding levels. After excluding these new areas of increased spending, the FY 2004 budget proposal is only 3.1 percent above FY 2003 enacted appropriations. This percentage is less than the government-wide budget increase, despite our dependence on the programs in the 150 account to lead the nonmilitary war against terrorism. Winning the war against terrorism requires both a short-term and a longer term effort. The FY 2004 submission recommends $4.7 billion in economic and security assistance to key partners and allies that have joined the United States in the fight. This includes $657 million for Afghanistan. We recommend an increase of $55 million for Afghanistan, an amount less than 10% above the administration's request. The funds would be used to accelerate establishment of an enterprise fund, increase security for the Karzai administration, and speed up training assistance to the Afghan National Army and police. There are a number of other areas where we are also requesting increases. For example, the administration's request does not recognize that we need to maintain and accelerate programs in non-proliferation and anti-terrorism. We are asking for a $137 million increase in the NADR account which includes two key efforts: Export Control and Related Border Security Assistance, and the Science Centers and Bio-Chem Redirection program. The increase is necessary to meet long-term needs and maintain momentum during this critical period. The NADR account also includes the U.S. voluntary contribution to the International Atomic Energy Agency (IAEA). Whether it involves the ability to conduct inspections of nuclear programs in states like Iraq and North Korea or leadership of an international effort to combat radiological terrorism, the IAEA's importance cannot be underestimated. The Committee will be taking a look at increased support for the IAEA in the future. The administration proposes a $342 million increase above enacted FY 2003 levels for the core State Department staffing and training account. This includes resources to be put toward the administration's three-year Diplomatic Readiness Initiative to add 1,158 positions over three Senators Nickles and Conrad - February 28, 2003 years to the ranks of the Foreign Service. Unfortunately, however, the 2003 omnibus bill substantially cut this account, so we will begin FY 2004 already behind in fulfilling the Secretary's minimum staffing needs. Secretary Powell is trying to reverse a major deficiency. Even after the 1,158 positions called for by the Initiative are filled, the number of Foreign Service generalists will only be slightly higher than it was 17 years ago because of downsizing in the intervening years. Staffing shortfalls have resulted in numerous weaknesses in our diplomatic capabilities – vacancies in numerous hardship posts, junior officers doing jobs that should be filled by more experienced senior officers, deficits in language proficiency, and an inability to send officers to training because they must fill front-line positions. We do not believe that the FY 2004 request is sufficient to address these difficulties and to provide the kind of robust American diplomatic presence overseas that is needed to win the war on terrorism. We therefore request an increase in the diplomatic and consular account of $290 million which will restore cuts taken in the 2003 omnibus appropriations and also provide additional funding for staffing, diplomat training, and embassy communications. Embassy security must be another top congressional priority. American officials abroad and the embassies where they work are prime terrorist targets. It is vital that we boost the effort to provide for the safety and security of Americans serving their country overseas in an increasingly dangerous environment. Embassy security and construction has been a priority of the State Department and the Congress since the terrorist bombings of our facilities in Kenya and Tanzania in 1998. For FY 2004, the President proposes $1.5 billion for these purposes. Even with this amount, however, it will be 12 years before all of our citizens will be working in embassies that meet even minimal safety standards. We are proposing an increase of $312 million to get the job done faster. That amount restores cuts from the omnibus and adds funding that will allow three additional embassy complexes to begin construction in 2004. To further accelerate the construction, the State Department is considering launching a pilot program in FY 2004 designed to put in place over the next decade a cost-sharing arrangement for capital construction with other U.S. agencies maintaining staff in American embassies. We strongly urge that the administration adopt such a program and hope that there will be strong congressional interest in having these costs shared among multiple departments. It would make Americans from all agencies safer in a shorter period of time. We would also note that, separate from the State Department request, the U.S. Agency for International Development (USAID) proposes $146 million for its Capital Investment Fund, most of which is intended to support the construction of new and more secure USAID missions co-located on U.S. embassy compounds. Support of this request is absolutely vital to ensure better security for USAID personnel, who were stunned last October by the assassination of one of their finest, Larry Foley, in Amman, Jordan. The President's International Affairs Budget includes several important initiatives that are part of our longer term war on terrorism. The Millennium Challenge Account, for which $1.3 billion is requested for FY 2004, represents a highly innovative approach to investing U.S. foreign aid resources where they have the greatest chance of contributing quickly to economic growth and poverty reduction. The program, which is intended to grow to $5 billion by FY 2006, will identify the "best performers" among developing nations through a transparent, objective selection process that will measure performance based in the areas of governance, -3 Senators Nickles and Conrad - February 28, 2003 economic policy, and access to health and education. The initiative has promise for ensuring that American economic aid achieves its intended results and serves as an incentive for nonqualifying countries to accelerate reforms that will lead to MCA participation and eventual success in the future. Both the effort and the additional funding are signals that the United States is willing to address global poverty and underdevelopment. But it is crucial, and the President has agreed, that the MCA funding should not cut into other important programs. For that reason, we are asking that the Child Survival and Health program be increased by $222 million and the development assistance account be raised by $44 million. Both of these amounts would continue funding at the level approved in the FY 2003 omnibus bill. We are also concerned about proposed reductions in funding to the Balkans and to the Newly Independent States (NIS). We propose an increase of $100 million for the Freedom Support Act and the SEED programs to restore cuts and to increase funds for assistance in law enforcement, cross-border crime, counter-narcotics, border security and health care. President Bush also announced during his State of the Union address a significant proposal to provide $15 billion over the next five years for the prevention and treatment of HIV/AIDS in Africa, the Caribbean, and elsewhere. Of this total, $10 billion would represent new money beyond current amounts. This critical initiative will prevent 7 million new infections, provide antiretroviral drugs for 2 million HIV-infected individuals, and care for 10 million HIV-infected people and AIDS orphans. We are currently considering legislation that will accelerate fulfillment of the President's commitment and would therefore request that $525 million be added to the request for this purpose. This is an important time in history, and Americans would intuitively agree that we need to address growing anti-Americanism. Especially in the Islamic world, we must clearly and honestly explain the views of the United States, displaying the humanity and generosity of our people, and underscore issues of commonality. To expand opportunities for interaction, we request an increase of $140 million in our international broadcasting and educational and cultural exchanges. This amount will restore cuts in funding for Eastern and Central Europe radio, get Arab language TV up and running in six months instead of eighteen, and restore cuts in the Fulbright and professional exchanges. It would also fund a program supported by Senators from both sides of the aisle at our Committee hearing yesterday - the creation of an overseas Islamic dialogue that makes full use of the Arab and Persian communities here in the United States. We would also like to highlight several other elements of the Function 150 request that deserve the Budget Committee's support. The budget proposal includes $359 million for the Peace Corps, the second installment of a five-year plan to double the number of volunteers. The Peace Corps has proven to be one of the best U.S. investments for improving the lives of poor people in developing countries and helping spread a better understanding of American culture. The increase will further provide better security for volunteers serving in many volatile areas of the world. The President also proposes $395 million for debt reduction, most of it to help further the Heavily Indebted Poor Country (HIPC) initiative. The request would provide funds to fully cancel U.S. debt owed by the Democratic Republic of Congo and to respond to a pledge made last year at the G-8 summit to cover a growing financing gap in completing the HIPC process for several severely indebted nations in Africa and elsewhere. Senators Nickles and Conrad - February 28, 2003 Food aid is the last area where we felt that an increase over the administration's request is fully warranted. We would recommend an increase of $250 million in the PL 480 Title II account. Our overall recommendation may in fact be an underestimate given unforeseen needs related to Iraq. The amount that we are recommending is based on the Nelson amendment to the omnibus bill that was passed by the Senate but was subsequently cut in half during the omnibus conference. For future years, you need to leave room in your calculations for the MCA which is expected to grow to $3.3 billion in 2005, $5 billion in 2006, and $5 billion thereafter. The Peace Corps will be increasing $42 million each year. Otherwise, projecting foreign policy budget resource requirements over the next ten years is difficult. Could anyone have predicted in 1991 that we would be going into Afghanistan in 2001, or in 1993 that we would be considering war in Iraq today? Global uncertainty and unforeseen security threats are an unfortunate reality. We should assume that resource requirements for international affairs are unlikely to fall during the next decade. We are requesting increases totaling $2.075 billion (7.3 percent) above the administration's FY '04 request. This boost in funding will make important strides in restoring a weakened diplomatic corps, improving the security of our facilities and the safety of Americans serving abroad, in advancing the war on terrorism and curbing the proliferation of weapons of mass destruction. We must be prepared to sustain and build on these efforts in the future. We appreciate the opportunity to express our views on the FY2004 International Affairs budget request and hope that our comments are useful during your consideration of the budget resolution. Please feel free to call either of us with any questions or observations you would like us to keep in mind as we pursue our authorization responsibilities. Sincerely yours, Klick Richard G. Lugar RGL/mi Joseph R. Biden, Jr. -5 |