Homeland security funds may shrink in 2004, key aide says

The top Senate aide for appropriations on Monday said federal funding for homeland security activities may be lower in fiscal 2004 than they are in the current year since Congress passed an emergency supplemental that boosted homeland security funding.

Spending for homeland security has "spiked" in fiscal 2003, said Bill Hoagland, director of budget and appropriations in the office of Senate Majority Leader Bill Frist, R-Tenn. Overall federal spending in fiscal 2002 was less than $28 billion, with about $2 billion of that obtained through fees.

In fiscal 2003, including the recently signed emergency supplemental funding, nearly $34 billion is being provided, a "staggering" 22 percent increase, he said. And the figure is even higher if you include items like the $3 billion given to the airline industry specifically for unreimbursed security costs, such as airports. That total is higher than the president's fiscal 2004 request for $34 billion, he said.

Hoagland also predicted problems would arise in the fiscal 2004 budget battles over a lower cap placed on non-defense spending from fiscal 2003 in the conference resolution. "That is going to become an issue," he said, adding that as a result, it will be more difficult to find funding for homeland security.

He recognized the seriousness of states' funding shortfall, and praised the private sector for stepping up on homeland security, indicating that it may need to continue with state and federal deficits growing.

But Hoagland noted that homeland security spending is "frustrating" to nail down in the budget. For instance, not all federal money spent on homeland security goes to the new Homeland Security Department, and of that which does go to the department, 30 percent is not related to homeland security.

Speaking at an Equity International event on emergency responders, Hoagland said spending for first responders has been "unnecessarily confusing, downright distracting and overly politicized," and called for more defined policy objectives. He said that with the war supplemental, Congress has provided additional funds for first responders, with requirements that the funds be delivered to states within 60 days and in the hands of localities 30 days after that, approximately Aug. 1.

Also at the event, Michael Meldon, senior director for development at the new Council on Homeland Security, described the association that will address the full range of homeland security activities. Meldon is helping to form a 15-member board to coordinate the activities of the council, possibly expanding to 30.

The board will consist of large systems integrators, small businesses and research institutions, Meldon said. It will have a chair elected by the board and rotating annually, and an executive director, a role Meldon may fill.

The private sector council will kick off in June with the first of a series of networking events on Capitol Hill with congressional staff and members, he said. The council also plans to hold regularly scheduled meetings to showcase working and developing technologies with senior administration decision makers, he said. And it will emphasize the role of small business.