Copyright 2000 Federal News Service, Inc.
Federal News Service
February 24, 2000, Thursday
SECTION: PREPARED TESTIMONY
LENGTH: 1594 words
HEADLINE:
PREPARED TESTIMONY OF WILLIAM M. DALEY COMMERCE SECRETARY
BEFORE
THE SENATE APPROPRIATIONS COMMITTEE SUBCOMMITTEE ON COMMERCE,
JUSTICE, STATE AND THE JUDICIARY
SUBJECT - THE COMMERCE
DEPARTMENT'S FY2001 BUDGET
BODY:
Good
morning. I am pleased to be here to present the Commerce Department's budget for
the new fiscal year.
Mr. Chairman, first I want to thank you, the
members of this Subcommittee, and all your hardworking clerks for the support
and counsel over these past three years.
This will be our last year
together, so I look forward to working with the Subcommittee to make it one of
the best ever.
As you all know, we are in the longest economic expansion
in our nation's history. As a result, we are in an era of unprecedented budget
surpluses. And I think all of us want this to continue for many years to come.
We are requesting a budget that covers our everyday chores, like taking the
Census, advancing U.S. trade, and protecting marine resources. But we also are
requesting $875 million in new, strategic investments that will
help us do our job better, and prepare for the future.
In my opinion,
these investments are not only consistent with President Clinton's priorities,
but they also reflect many of your priorities in the Congress.
All told,
our budget calls for $5 billion next year, down 37 percent from
this year's $8.5 billion budget. Of course, the decline is
because the bulk of the work for Census 2000 is being done right now, in the
current fiscal year. I might add that we are on track for completing the Census
on time, which in no small measure is due to the support of the Congress. For
that we thank you.
To complete the work, we are requesting
$393 million in FY 2001, for processing and distributing the
data, and for closing down local census offices.
To be honest, I have
prided myself on keeping a lid on our budget. Of course, we have had to request
substantial sums to cover the Census. But our core budget has remained fairly
constant at about $4 billion for the last few years.
But the time has come to invest in the future: for promoting exports and
enforcing our trade laws, for delivering high quality services, and for helping
communities adjust to economic forces.
In my opinion, this is a very
prudent budget that, despite the increase, will pay big dividends in the long
run.
Let me briefly highlight some of our proposals.
First are
investments for accelerating the E-Commerce Revolution. Obviously, E-Commerce is
the growth engine of the future. We've never seen anything like it before. In my
three years as Secretary, I have watched it grow from hardly a decimal point in
world economic statistics, to what will be a trillion dollar business in a few
years.
But this revolution is not without its challenges. All of us got
the wake up call a few weeks ago that showed how vulnerable the Internet is to
cyber attacks. President Clinton's meeting with industry, and your Subcommittee
hearing last week, clearly underscore the need for tighter Internet security.
While our information economy is strong and resilient, we must work together
with the private sector to develop solutions to these problems.
Obviously, it is good business practice to do so to make sure that
public confidence in our economy remains.
In our budget, we are
proposing $76 million to work on the problem, including
$50 million for an institute to begin Internet security
R&D. It will be housed at NIST and will involve the private sector.
To fully exploit the Internet's potential, everyone needs to be plugged
into the revolution.
So we are seeking $175 million to
help narrow the digital divide, and to promote E-Commerce.
We are
requesting:
- $50 million for NTIA to increase computer
use in the home;
- a tripling in NTIA's Technology Opportunities Program
to $45 million;
- and $23 million for
EDA to install broadband technology in rural communities and distressed areas,
where high-speed Internet access is as vital as good roads and bridges.
As we are often reminded -- accurate measuring of the economy is an
absolutely vital government function. So we are seeking $29
million for tracking E-Commerce growth, and for enhancing our statistical
infrastructure.
Next, we are seeking $54 million to
promote economic development in our Native American communities. Turning things
around for Native Americans is a key goal of President Clinton's New Markets
program.
We also are requesting $28 million in new
funding for Minority Serving Institutions to help them educate more scientists
and engineers. NOAA and NIST will administer the funding.
Another
community struggling to move ahead is the Mississippi Delta region, where
unemployment rates are double and triple the national average. We are asking
Congress for $10 million as part of a government-wide effort to
revitalize this multi-state area.
As you know, NOAA makes up the lion's
share of our budget. We are requesting nearly $2.8 billion for
NOAA.
Let me highlight a few of the new investments we're requesting.
There's $376 million in new money for protecting the
environment. Much of this supports the President's Lands Legacy initiative,
which is one of the greatest efforts to save our natural resources since Teddy
Roosevelt was President.
We will be working on a number of fronts.
There's $100 million for a new Coastal Impact
Assistance Fund, and a $93 million increase in
Coastal Zone Management grants.
Our marine resources
are a top priority. Your support on this is extremely important as we negotiate
with other nations, and work to protect these resources.
We are
requesting $60 million so America can continue to honor its
commitment to the 1999 Pacific Salmon Agreement. We also want a
$10 million increase for our National Marine Sanctuaries, which
is nearly double what we received this year.In other areas, we request:
$12 million to expand efforts to stop declines in a number of
endangered species; and $10 million to help fishermen deal with
over-fished waters.
Predicting the weather and maintaining the largest
nonmilitary fleet of satellites in the world are key priorities. We are seeking
$100 million to finish modernizing the National Weather
Service, and for maintaining our satellite systems.
And we need
$28 million as part of a multi-year effort to improve forecasts
of El Nino, and other climate events.
In the area of trade, we are
requesting $72 million.
Despite our past successes in
expanding trade, we still have a nagging deficit. Obviously, one of the main
reasons for that is our strong economy, and strong demand for imports. But in my
opinion, we can do more to help shrink the deficit.
Bringing China into
the WTO obviously would help. A quarter of humanity lives in China, but many of
their markets are now closed to exporters.
By granting China permanent
normal trade relations, we would gain better access to many markets ... from
agriculture to telecommunications. And as a member of WTO, China for the first
time will have to play by global trade rules.
To make sure that it does,
we also are requesting $21 million to get more aggressive about
enforcing our trade laws, and our agreements with other nations. Last year, we
did a great job on steel dumping. But given the sheer volume of our exports and
imports, we need more resources to remain effective.To be frank, how can we
expect the American people to support us on trade, if they see we aren't doing a
good job of policing our agreements?
We can trust our trading partners,
but we must verify that our trade deals are being lived up to. So, for the first
time, we plan to put trade compliance people in China, Japan, and Korea. This
alone will help with about half the trade agreement problems businesses face.
There's $16 million, also, for promoting environmental
exports, and exports by small manufacturers. And we are proposing
$35 million to help communities adjust when a plant closes due
to trade, or other economic shocks.
The last area I want to mention is
management. Without a doubt, the number one challenge for government in the
years ahead is to deliver services more efficiently. One way of doing that is
making government e-ready.
For several years now, we have asked for
money to re-wire our building with optical fiber, so we could become a truly
Digital Department. With fiber, our network would operate ten times faster than
it does today. Ten years ago people could wait overnight for an urgent letter.
But to get the job done today, people need the information delivered instantly
to their computers.
As the first Commerce Secretary of the Internet
Century -and the longest serving! -- I strongly urge the subcommittee to provide
the $6 million we need to rewire the building. It is absolutely
essential.
We also are requesting funds for a number of critical
building projects, notably for NOAA and the Census Bureau.
We have
implemented good management practices. In the last two years, we have improved
security for our workers, property and information. And for the first time, we
have received clean financial statements from all the bureaus. And, we need to
continue to implement PTO's reforms passed last year.
And finally, let
me add that as part of a supplemental request, we now have a plan on the table
to close down NTIS, which has become outdated by the Internet. In my opinion,
our plan would maintain public access to the scientific and technical
information NTIS distributes, and minimize the impact a closure would have on
federal workers.
Mr. Chairman, that completes my brief outline of our
2001 budget request.
I am prepared to answer your questions.
END
LOAD-DATE: February 25, 2000
