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Copyright 1999 Federal News Service, Inc.  
Federal News Service

MARCH 10, 1999, WEDNESDAY

SECTION: IN THE NEWS

LENGTH: 1873 words

HEADLINE: PREPARED STATEMENT OF
THE HON. JAMES R. LYONS
UNDER SECRETARY, NATURAL RESOURCES AND ENVIRONMENT
U.S. DEPARTMENT OF AGRICULTURE
BEFORE THE HOUSE APPROPRIATIONS COMMITTEE
INTERIOR SUBCOMMITTEE
SUBJECT - USDA FOREST SERVICE FISCAL YEAR 2000 BUDGET

BODY:

Chairman Regula, Representative Dicks, and Members of the Committee, thank you for the opportunity to appear before you today to discuss the Forest Service's proposed budget for Fiscal Year 2000.
I would like to present a brief overview of our budget request and highlight some of the priorities we've identified in terms of three broad areas. Chief Dombeck will address these and other areas in greater detail. The three areas I want to highlight are: 1) the priorities of the President and the Department of Agriculture in managing the rich natural resources of this nation's forest and range lands; 2) these priorities and their tie to the Forest Service's Natural Resource Agenda; and 3) the emphasis being placed on the Forest Service to be accountable to Congress and the American people for its performance and use of federal funds. Last year when I testified before several committees, including this one, I stated that despite the contentious debates on several Forest Service management issues, Congress and the Administration agree more than we disagree. Despite the differences regarding budget priorities and several environmental riders which were part of the fiscal year 1999 appropriations debate, we worked together to develop a bill which moved the Forest Service forward towards improved forest and ecological health and sustainability. I continue to believe we have common interests and greater agreement than disagreement, although I'm sure we'll be involved in tough debate again over this year's budget.
First, a brief overview. This budget proposes an overall increase in discretionary appropriations of 6.5 percent compared to the fiscal year 1999 Appropriation. The budget includes a healthy emphasis on the basic programs necessary for managing the agency's 192 million acres, which contains a $30 billion infrastructure, 383,000 miles of road, 74,000 authorized land uses, 23,000 developed recreation sites, and uncounted dispersed recreation sites. In addition, the budget proposes a substantial increase of $37.2 million to enhance the agency's leading role in Forest and Rangeland Research. Finally, the budget also proposes major increases in State and Private Forestry programs, which are key elements of the President's initiatives.
President and Department Priorities
The President has proposed several initiatives in the fiscal year 2000 budget, including continuation of the Clean water Action Plan, first initiated as part of the fiscal year 1999 budget. Principally, the President's goal in fiscal year 2000 is to develop Forest Service programs which assure that all the nation's lands, not just National Forest lands, provide clean water, healthy habitat, open spaces, and expanded recreation opportunities as well as the sustained products, goods and services that the public demands of our forested lands.
The President's FY 2000 budget includes the Lands Legacy Initiative, the largest one-year investment ever made in the preservation of America's lands, and the continuation of the Clean Water Action Plan to continue to focus on priority watersheds where protection and improvement programs are so desperately needed.
The Lands Legacy Initiative is a $1 billion federal program, and includes $217.6 million in Forest Service funding. The Initiative focuses on working with states, tribes, local governments, and willing private partners to protect great places, conserve open space for recreation and wildlife, and to preserve forests, farmlands, and coastal areas.
Currently, 30 million people live within an hour's drive of National Forest land. As the President noted in his State of the Union address, 7,000 acres of farmland and open space are lost every day to development. The number of tracts of forestland of 50 acres or less doubled from 1978 to 1994 as our landscape was carved into smaller pieces. Access to, and the health of these lands are diminishing as a result of this fragmentation. To address these serious concerns, the President's budget proposes to significantly increase funding of the agency's State and Private Forestry programs, with an increase of $80 million, or 48 percent, over fiscal year 1999.
Just over one year ago, the President and the Vice President announced the Administration's Clean Water Action Plan. The Plan seeks to protect public health and to restore water quality by setting strong goals and providing the Federal land management agencies, the states, tribes, communities and landowners with the tools and resources to meet them. It charts a new course, emphasizing collaborative strategies built around watersheds and the communities they sustain.
Last year, the Congress provided additional resources to support the restoration of key watersheds and investments in fish and wildlife habitat -- elements contained in the President's Clean Water Action Plan. I want to thank you, Mr. Chairman, for your efforts to promote these important investments.
Water resources have always played a prominent role in the management of our National Forests. The Organic Act of 1897 designated "securing favorable conditions of water flows" as one of the primary purposes for establishing the National Forests. Many communities, especially in the West, depend on healthy forested watersheds for their sources of clean drinking water. More than 50 percent of the water in our nation originates from and flows through forested lands on its way to suburbs and cities. Wildlife, particularly fish and other aquatic species, must have an adequate quantity and quality of water to survive.
Looking over the landscape, it is clear that the Lands Legacy Initiative and the Clean Water Action Plan, as partially implemented through the Forest Service, are critical in meeting healthy watershed and clean water objectives.
The Forest Service budget increases Clean Water Action Plan funding by $89 million from the 1999 appropriation and $131 million over 1998. The Results Act annual performance plan for 2000 provides for some solid increases in outputs that, over time, will make a significant qualitative improvement in conditions on the ground.
The Forest Service is the leading provider of outdoor recreation on public lands. The Lands Legacy Initiative, through increased land acquisition, will improve recreational access as well as promote healthy watersheds and open space.
The fiscal year 2000 budget contains additional initiatives. As was proposed last year, the Administration again intends to forward legislation to stabilize payments to states. I believe it is essential to provide these payments through a process that does not link the output of forest products to the education of our rural school children or the quality of the roads used by their parents. If enacted, the legislation will result in long-term predictability of payments needed by the states and counties of America. Natural Resource Agenda
The President's budget strongly supports the Forest Service's Natural Resource Agenda.

Wildlife, grazing, fire, fisheries, and other programs increase by $48.6 million to support watershed health and restoration. Increased funding contained in this budget is essential for restoring and protecting watershed health.
Proposed budget increases of $113.2 million in programs such as Forest and Rangeland Research, in addition to the State and Private Forestry programs I've already mentioned, will promote long term land health.
Management of the National Forest road system is a third component of the Natural Resource Agenda. With a funding increase of $22.6 million, this road system, which is expansive enough to circle the globe more than 15 times, will receive critically needed funds for maintenance.
Lastly, as part of the Natural Resource Agenda, the President's budget continues to provide strong emphasis on recreation. The Forest Service is the leading provider of outdoor recreation on public lands in the United States. We are pleased with the emphasis Congress has shown in promoting recreation. The Recreation Fee Demonstration Program is one such example, and a resounding success. Through this program, we have improved facilities and visitors experiences at fee sites. However, I want to emphasize that 95 percent of recreational experiences on the National Forests involve use of non-fee dispersed sites. The President's budget continues to emphasize this type of recreational use through appropriated funds. I strongly encourage your continued support of these programs in order to maintain quality experiences for those who use the forests for highly dispersed activities, but who are unable to pay for use of these sites, are not close to fee sites, or who desire to recreate in the undeveloped non-fee areas of the National Forests.
Forest Service Accountability
The success of the Natural Resource Agenda and the initiatives proposed by the President are critical to the long-term health and conservation of the National Forests and the nation's state, local, and non-industrial private lands. Effective Forest Service leadership is what will facilitate these long-term successes. However, leadership will not be successful if the Forest Service does not aggressively address what can only be described as severe lapses in its financial management and overall performance accountability. As you know, the agency's financial health, decision-making, and overall accountability has been scrutinized and extensively criticized in more than 20 studies initiated by Congress, the Department, and internally.
Let me say, I have no doubt the Forest Service has gotten the message! Through reorganization and placement of professionals in top leadership positions, the agency has placed the financial management role in a position that assures attention and oversight in equal stature and priority to its Natural Resource Agenda. While I believe it is important for Congress to actively perform its oversight of the agency's financial condition, I believe it is also important to ask for some degree of patience. The agency's books and records took a decade or more to turn sour. It will take at least the rest of fiscal year 1999 to implement a new General Ledger, and at least through fiscal year 2000 to receive a clean financial opinion.
Meanwhile, the Forest Service is taking action to improve. This includes paying detailed attention to management of indirect costs, restructuring the process for charging overhead to permanent and trust funds, and actively working on implementing performance measures consistent with the Results Act, which should ultimately lead to proposals for a revised budget structure to reflect the integrated nature of work it accomplishes on the ground.
Summary
Mr. Chairman, I am confident that with your support we can work together to build a Forest Service program that accomplishes long-term land health objectives, delivers clean water, provides quality access, assures diverse recreational opportunities for greater numbers of Americans, and continues providing strong livelihoods for communities for generations to come.
Thank you for the opportunity to address you today. I would be pleased to answer any questions you may have.
END


LOAD-DATE: March 12, 1999




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