Veneman said that to achieve restraint, USDA’s proposed budget does not include approximately $1.1 billion in one-time mostly emergency funding that should end in this fiscal year. She said that future funding for such needs at USDA can be provided from the $5.6 billion disaster reserve proposed in President George W. Bush’s overall federal budget for FY 2002.

     In addition, Veneman said that USDA’s budget proposes about $150 million in savings by eliminating approximately 300 'earmarked projects’ for research and extension activities that were not subject to a competitive, merit-based selection process.

     Also, to achieve restraint, she said that the Department’s budget proposal saves taxpayers an additional $200 million by reducing or eliminating programs that are not immediate priorities, that need to be better targeted, or that have completed their mission. As an example, pilot programs such as the modular housing demonstration loan program in the Rural Housing Service are not being renewed.

     Noting that “It is important that we always try to deliver to the taxpayer the best return for their investment,” Veneman advised that the Department would be conducting a number of reviews to determine opportunities to improve management at USDA. Such reviews would include focusing on the need to develop modern management information systems to provide timely and reliable information on USDA finances, personnel and purchases; and making the Department’s administrative operations more efficient by eliminating redundant and aging information systems. USDA is also reviewing field office structures to see how it can continue to improve service and effectiveness, and making sure USDA foreign food assistance programs are achieving the anticipated results.

     USDA’s overall budget proposal for FY 2002 calls for a program level of nearly $94.9 billion and federal cash outlays of $63.2 billion. This represents an 8.6 percent decrease--by about $8.9 billion--from the currently estimated FY 2001 program level of almost $103.8 billion, as well as a 9.1 percent decrease--by about $6.3 billion--from the currently estimated FY 2001 cash outlay level of nearly $69.6 billion. As noted earlier, both the program level and cash outlay figures for FY 2001 include emergency assistance and one-time spending items for that year only.

     Budget officials generally regard “program level” figures as the best method for describing the total scope of federal activities, including all services, loans, and grants in a budget. This is because “federal cash outlay” figures--while generally publicized more frequently--often don’t clearly reflect the total magnitude of federal activities, since some loan program outlay figures are either excluded or presented in net present value terms.

     USDA’s budget proposes a federal staffing level for FY 2002 of 97,794 full-time equivalent positions, or federal staff years. This represents a decrease of 79 federal staff years from the currently estimated FY 2001 federal staff year level of 97,873.

     Agencies which reflect proposed increases in federal staff years for FY 2002 include the Animal and Plant Health Inspection Service (an increase of 100 federal staff years, to total 7,000 federal staff years), the National Agricultural Statistics Service (53, to total 1,188), the Agricultural Marketing Service (33, to total 3,425), the Food and Nutrition Service (28, to total 1,614), the Foreign Agricultural Service (19, to total 985), the Food Safety and Inspection Service (16, to total 9,661), and the Grain Inspection, Packers and Stockyards Administration (9, to total 810).

     Agencies with proposed decreases in federal staff years include the Natural Resources Conservation Service (a decrease of 301 federal staff years, to total 11,200 federal staff years) and the Cooperative State Research, Education, and Extension Service (36, to total 415).

     In addition, the permanent full-time non-federal county employees of the Farm Service Agency are projected to remain at 9,496, while the temporary non-federal FSA county staff years are projected to decrease by 461, to total 2,000--for a sum total of 11,496 non-federal staff years for FY 2002.

     These federal staff year estimates are all subject to adjustments to reflect the final outcome of budget negotiations, including such unpredictable factors as natural disasters and other emergencies.

     Highlights of USDA’s FY 2002 budget proposal, thought to be of particular interest to employees, include:

• Providing an increase of $13 million, to total $277 million, in the APHIS-administered Agricultural Quarantine Inspection Program (AQI), which is USDA’s front-line defense to help protect the U.S. against plant pests and animal diseases like foot-and-mouth disease and BSE, or “mad cow disease.” In addition, to continue strengthening these programs, Veneman announced the authorization of an additional $32 million to hire approximately 350 additional personnel at critical ports and international airports to protect against pests and diseases. This includes 127 permanent officers and technicians, 27 canine officers, 173 temporary inspector positions, and 20 veterinarians. These positions are over and above the levels indicated in the FY 2001 and FY 2002 budgets and will be financed from available revenues in the APHIS user fee account.
  
  
• Continuing the Department’s field office modernization plan for its county-based agencies (FSA, NRCS, and RD), with a continued emphasis on a “Common Computing Environment” (CCE) for all USDA Service Center agencies. This is designed to allow efficient e-mail, records transfer, and streamlined business processes for better customer service. This would also provide the infrastructure needed to meet the requirement, in the Freedom to E-File Act of 2000, that customers be able to do business electronically with USDA Service Center agencies by June 2002.
  
  
• Funding the Cyber Security Program Office in the Office of the Chief Information Officer at $4.5 million, the same level as 2001, to support efforts at safeguarding the current and future delivery of USDA programs and services over the Internet.
  
  
• Budgeting an additional $10 million, to total $25 million, for NASS’s statistical activities associated with preparations for the 2002 Census of Agriculture, which is to be mailed out in December 2002.

USDA’s proposed budget for FY 2002 was transmitted to Congress earlier on the same day as the Department’s press conference.