In addition to constructing projects, the Corps carried out some significant programs and studies. These efforts reflects the varied nature of the Corps contribution to the Nation and include: o Completing of the National Program of Inspection of about 130 in need of immediate attention. unsafe dams was a vital contribution Americans. The spotlight on to the safety of many o Reforming the Section 404 Regulatory Program. We o Providing through our "Work For Others" program, engineering o Initiating a program to rehabilitate as well as improve the country. o Completing the special assignment which President Reagan gave the Corps following the initial $1/4 billion clean-up operation undertaken in the aftermath of the disaster created by the eruption of Mount St. Helens in May 1980. Following the clean-up operation, one of the largest disaster response efforts ever undertaken by the Corps, the Corps planned and is now implementing a permanent solution to the flood problems. o Undertaking the special Louisiana Wetlands Study. It is a vital and important study effort. This work will assess the importance of the wetlands to coastal Louisiana and what this Nation must do to protect them. CURRENT PROGRAM Mr. Chairman, the remainder of my presentation will be directed to the Corps current and budgeted program. The Assistant Secretary has focused on his goals for further improving the efficiency of the Army Corps of Engineers and has provided a brief overview of our Fiscal Year 1989 program and budget request. I will focus on: It was clear early on that the Corps would have to undergo internal adjustments to respond to the new challenges presented by increased cost-sharing and other provisions contained in the Water Resources Development Act of 1986. In addition, the prospect of future funding reductions suggested that we review all of our operations to determine if we could carry out our responsibilities even a more efficient manner. in The Assistant Secretary, in testimony, has discussed initiatives for the Civil Works program. I stand squarely in support of those initiatives and they are ours. Our common goal is to embark on measures that will build on our past efforts on improving efficiency, productivity, and predictability of our workload. We and our staffs have been working hard to translate these initiatives into working procedures. We are in this together and Assistant Secretary Page and I both hope we can count on this Subcommittee's encouragement and support in our program of efficiency improvement. We also are addressing concerns expressed by our project sponsors and Congress on the accuracy of project cost estimates and quicker project implementation. We are committed to a number of steps, including taking advantage of demonstration and test programs which are underway to improve our procedures and processes. We are committed to finding the best way to achieve the goals of improved efficiency which we all clearly desire. FISCAL YEAR 1989 BUDGET REQUEST As Assistant Secretary Page stated, this is a remarkably good budget given the national concern over budget deficits. The Administration recognizes the need to continue the development of this Nation's water resources in the principal areas of navigation and flood control. to The budget is based on the reforms embodied in the Water Resources Development Act of 1986 and our collective efforts implement the reforms equitably and consistently. Overall our budget request totals some $3.3 billion, an amount which is supplemented by nearly $1/4 billion in contributed funds from our project sponsors. I have provided detailed funding information on the table attached to this statement which compares the funding levels by individual appropriation titles for the period Fiscal Year 1987 thru 1989. Now, with your permission, Mr. Chairman, I will give some overall highlights of our budget. GENERAL INVESTIGATIONS The budget request for General Investigations account is $129 million. The program also includes additional non-federal contributions of $14 million for feasibility phase studies. The study program includes funds to initiate 20 new reconnaissance phase studies, an increase of four above last year's budget. They will be addressing critical water resources needs throughout the Nation. The new Our request for coordination with other agencies includes a new item called Interagency Water Resources Development. item will provide for activities such as meetings with communities and other sponsors who may wish to participate in future studies. Previously, this effort was included in study specific appropriations or distributed to all, work via the overhead account. However, the advent of cost-sharing in the General Investigations program requires a more accurate accounting of such costs. The budget includes $1 million for this activity. We are also continuing the implementation of the new Preconstruction Engineering and Design Program initiated in Fiscal Year 1988. With this program, projects advance from the feasibility phase to the Preconstruction Engineering and Design phase as quickly as possible, by funding these projects as their feasibility reports are being reviewed for submittal to Congress for construction authorization. CONSTRUCTION GENERAL For Fiscal Year 1989, the budget for Construction, General is $1.23 billion in new budget authority and includes $77 million from the Inland Waterways Trust Fund. Despite the constraints set by the recent Bipartisan Budget Agreement, the budget request includes funds to initiate five new construction starts, including the $1.3 billion Santa Ana flood control project in California. In addition, it provides for a new start program through Fiscal Year 1993. The Construction, General account also includes a new initiative, the implementation of Section 933 of the Water Resources Development Act of 1986 which authorizes cost-shared placement of dredged materials on beaches. We have budgeted $1 million for the Federal share of incremental dredged material placement for projects which may be approved under this program during Fiscal Year 1989. These funds will be used to place beach quality sand, a product of our dredging and maintenance activities on navigation inlets and channels, on beaches of States which make a formal request. Also, each state making such a request must agree to pay for 50 percent of the increased cost to the Corps of placing of the sand in such a manner. The Water Resources Development Act of 1986 increased the Federal cost ceilings of several authorities within our Continuing Authorities Program. With increased ceilings, we expect that future projects will be larger and more numerous; there will be a greater utilization of the program over With a greater use of the program, we would also expect the specifically authorized program. the years. a similar reduction from OPERATION AND MAINTENANCE, GENERAL The budget request for Operation and Maintenance, General, totals $1.37 billion. It includes $15 million from the Special Recreation Use Fee account, and $156 million from the Harbor Maintenance Trust Fund. The program we have laid out meets our highest priority needs. Follow-on funding for most of the add-ons in the Fiscal Year 1988 Continuing Resolution, and the need to adhere to the Bipartisan Budget Agreement, however, necessitate reduction in low priority recreational operation and maintenance, including dredging of some recreational and low use commercial harbors. We would anticipate this reduction to continue in future a |