U.S. Department of the Treasury

(Archived Content)

The President's proposed FY 1999 budget supports Treasury's key governmental role as taxadministrator, revenue collector, law enforcer, and financial manager. Treasury developed thisfunding level in the context of its support for balancing the Federal budget. Since discretionaryspending was not proposed to grow significantly over last year, Treasury was challenged tostretchits existing dollars and make key capital investments for future productivity.

A key aspect of our budget is the inclusion of performance goals that are derived from ourstrategic plan. This is the third year that we have included them. Our FY 1999 Budget andPerformance Plan contains performance targets for each of Treasury's primary missions whichdefinethe degree of improvement that is expected from the resources requested. The Performance Plansection of this overall Budget-in-Brief package sets out Treasury's strategic objectives andperformance plan. It has important details that discuss further the expected performance resultsofthe resources requested for FY 1999, as well as reports on FY 1997 and FY 1998.

Treasury built its request of $12.158 billion and 145,673 full-time equivalent (FTE) staff yearsupon three funding priorities to:

• Ensure the quality of current operations by fully supporting the mandatory cost increasesand meeting anticipated FY 1999 workload requirements;
• Invest in critical capital improvements needed to realize future efficiencies and programimprovements, and address workload growth; and
• Improve performance and meet new challenges by investing in program enhancements.

Above the $12.158 billion amount, Treasury is also requesting additional funding for theInternalRevenue Service (IRS) Earned Income Tax Credit (EITC) program ($143 million), which isoutsidethe discretionary spending caps. This amount is consistent with the Balanced Budget Act of1997.

ENSURE THE QUALITY OF CURRENT OPERATIONS

Department-wide, Treasury managed to accommodate mandatory costs and criticaladministrativesupport increases within overall funding levels approved in the FY 1998 appropriation act. Eachyear, pay raises, inflation, rent increases and other mandatory costs must be factored into thebaselineto maintain current operating levels. No bureau can take reductions below this baseline withoutsignificantly compromising the quality of its essential missions. For FY 1999, in addition toaccounting for these costs, we also funded four other baseline investments required to maintaincurrent operating levels. These includes: (1) the full year cost of new programs enacted in prioryears; (2) essential equipment needs; (3) on-going programs previously supported by otherfundingprovisions; and (4) mandatory workload increases.

In FY 1999, Treasury is requesting sufficient funding for the full year cost of programs andstaffing initiated in FY 1998 such as the White House Security program and the Federal LawEnforcement Training Center (FLETC) International Law Enforcement Academies. The firstyearof these initiatives was funded at a partial year level, since it takes time to hire staff and beginimplementation.

Treasury is requesting critical equipment upgrades in its law enforcement bureaus to replaceaging vehicles and upgrade radio communication systems to accommodate the narrowing of theradiospectrum available for law enforcement use. In addition, the request continues the currentoperatinglevel of the Youth Crime Gun Interdiction Initiative previously funded from the TreasuryForfeitureFund.

The budget also includes mandatory workload increases for the campaign nominee programforthe next presidential election, land border passenger processing to cover new border crossing andstatutorily mandated levels of service, and FLETC's FY 1999 projected training needs (especiallyforthe U.S. Border Patrol). Treasury also requests sufficient funding to support the Secretary indeveloping and carrying out domestic and international financial services, law enforcement, tax,economic and management policies.

In addition, Treasury continues funding within its base level to ensure the timely completionofthe Year 2000 date change for all critical systems. Treasury has some of the most critical systemswithin the Federal Government, including those that handle all Federal payments, collect over 95percent of all receipts and tax revenues, secure our Nation's money system, and protect theNation'sborders.

INVEST IN CRITICAL CAPITAL IMPROVEMENTS

Future budgets are not likely to be as generous in allowing Treasury to meet workloadgrowthwith increased staff and resources. For this reason, it is important that the Department makecriticalinvestments today that will allow Treasury to serve its customers better and more efficientlytomorrow.

In FY 1999, IRS begins the second year of its modernization effort, according to the blueprintand schedules set out by the IRS Chief Information Officer and approved by the Congress and theOffice of Management and Budget (OMB). The FY 1999 budget request covers equipment andcontract costs for system development and replacement by continuing the stable funding approachestablished in FY 1998 using the Information Technology Investment account. Funding is alsorequested for Business Line Investments which provide critical upgrades to current operatingsystems.

The U.S. Customs Service budget includes resources that will enable port personnel torespondto the growing sophistication of evasion methods used by smuggling organizations. Customs willbeable to increase its reliance on technological advances in a greater variety of automated targetingandnon-intrusive inspection systems, thereby addressing the smugglers' preference for deepconcealmentin the growing number of cargo entries (seagoing containers, conveyances, and rail cars).

The U.S. Secret Service will invest in technology and equipment to support the PresidentialCandidate Protection Program. FY 1999 is a preparation year for the 2000 Presidential Campaignand funds are requested for additional computer and protective equipment.

ATF requests funding for relocation of the headquarters to a secure site. Over the long term,thisfacility will reduce rental costs by consolidating several locations. It will also reduce risks to ATFemployees by placing an organization that is a potential target of terrorism in a more securelocation.

Funds are also requested to continue the dormitory, classroom, and equipment upgradesaccording to the FLETC Master Plan. This is part of the ongoing effort to expand and modernizetraining facilities to meet future training requirements of the Federal law enforcement community.

Key investments are requested for repairs and renovations to the historic Treasury building aspart of a five-year plan to ensure the safety and stewardship of an important national landmark.Treasury expects the FY 1999 requested level will be the highest annual level required by theDepartment during the restoration period.

In each case, these investments have been developed in accordance with the criteria laid outbyOMB, consistent with the Clinger-Cohen Act of 1996. For specific details, please refer to theindividual bureau highlight sections.

IMPROVE PERFORMANCE AND MEET NEW CHALLENGES

Treasury requests additional funding for program initiatives that accomplish the two keyobjectives of improving performance and meeting new program challenges. These initiatives areclosely linked to our capital investments by 1) implementing the organizational changes needed toimprove operations that make modernization more meaningful; and 2) providing the staffingnecessary to satisfy demands for improved services.

In the law enforcement area, Treasury requests: 1) additional Customs personnel to enhancetheinvestigation and interdiction of inbound illegal narcotics and outbound smuggled currency, inconjunction with the capital improvements in non-intrusive inspection technology; 2)enhancementsto permanent protection for the President and protective intelligence support; and 3) expansion oftheATF Youth Crime Gun Interdiction Initiative to increase coordinators working with State andlocallaw enforcement officials to reduce gun violence among youths. Each of these initiatives isdesignedto meet the increased scope and complexity of the demands for our law enforcement presence.

IRS is continuing its program improvement process begun in 1997 with the recommendationsofthe National Performance Review. Additional funding is requested to address important customerservice improvements including increasing and improving the quality of telephone access,rewritingof notices and forms, expanding the taxpayer advocate staff, and implementing the CitizenAdvisoryPanels. Significant improvement has already been made in these areas and the FY 1999 budgetexpands on these efforts. Funds proposed for modernizing the organization support fundamentalchanges in the way IRS does business, placing the emphasis on customer service and improvedtechnology.

Treasury is also requesting additional resources for key initiatives that strengthen our Nation'seconomy--especially in remote rural and disadvantaged urban areas. These two efforts are: 1) theCommunity Development Financial Institutions Fund (CDFI) which provides needed investmentcapital to distressed urban and rural communities; and 2) the Community Adjustment andInvestmentProgram (CAIP), a new program that provides investment capital to areas adversely affected bytheimplementation of NAFTA and related agreements.

Details on each of these initiatives are available in the individual bureau highlight sections andthesupplemental sections.