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Statement of John P. Walters
Director of National Drug Control Policy
Before the Senate Committee on Appropriations
Subcommittee on Treasury and General Government

"The Office of National Drug Control Policy's FY 2003 Budget Request"

April 24, 2002

III. The Consolidated Fiscal Year 2003 National Drug Control Budget

The President's FY 2003 Budget presents a balanced approach for drug control programs, fully supporting the National Drug Control Strategy. In FY 2003, critical initiatives significantly expand the Administration's commitment to drug treatment, support essential drug prevention programs targeting youth, and continue assistance to our partners in the Andean region. As reflected in the following table, the President's Fiscal Year 2003 request for aggregate national drug control funding and the drug-related functions of Executive departments and agencies constituting the total is an estimated $19.2 billion, an increase of $356.9 million (+1.9 percent) over the FY 2002 enacted level of $18.8 billion.

The President's FY 2003 Budget Request puts the necessary resources behind our commitment to reduce drug use in the near term. The following are key budget highlights that will contribute to our shared effort to stop drug use before it starts:

  • Safe and Drug-Free Schools and Communities Program: $644 million ($634.8 million drug-related). The budget continues funding for this school-based drug and violence prevention program aimed at young people, level funding the state grants program. To improve evaluation and better direct program activities in FY 2003, ONDCP will work with the Department of Education to develop a useful evaluation plan that will provide the data needed to impose program accountability, while alerting schools to problem areas.
  • National Youth Anti-Drug Media Campaign: $180 million. The Media Campaign uses multi-media advertising and public communications strategies aimed at youth and parents to promote anti-drug attitudes and behavior. The campaign is a comprehensive national effort that integrates paid advertising at national and local levels with public information outreach through a network of public and private partnerships to amplify and provide local context for campaign messages.
  • Drug-Free Communities Support Program: $60 million. This ONDCP program provides assistance to community groups on forming and sustaining effective community and anti-drug coalitions that fight the use of illegal drugs, alcohol, and tobacco by youth. Further, the President's request includes $2 million for the National Community Anti-Drug Coalition Institute. The Institute will provide education, training, and technical assistance for coalition leaders and community teams to enable coalitions to evaluate their own performance.
  • Parents Drug Corps Program: +$5 million. This new initiative, funded through the Corporation for National and Community Service, will encourage parents to help children stay drug-free by training them in drug prevention skills and methods.

The President's FY 2003 Budget builds upon the significant bipartisan interest we enjoy in expanding our nation's commitment to effective drug treatment programs and research. We are proud to be associated with the President's historic commitment of providing $1.6 billion over five years to increase funding for treatment. We look forward to working with the Department of Health and Human Services to implement this commitment in such a way that the resources are targeted to areas and populations with the greatest need. This Administration is committed to going beyond merely providing additional funding for drug treatment. We will seek to achieve a greater understanding of addiction and of the types of programs that prove effective, as well as to foster a climate where drug users are empowered to take an active, responsible role in their recovery. The following are key highlights that will begin an unprecedented effort to heal America's drug users:

  • Targeted Capacity Expansion (TCE) Program: +$109 million. This additional funding will help to expand the Treatment TCE program, which is designed to support a rapid, strategic response to emerging trends in substance use. Included in this proposal is $50 million to be used for a new component of the TCE program. This new component will be structured to reserve funding for state-level competitions, weighted according to each state's need for treatment services.
  • Substance Abuse Prevention and Treatment (SAPT) Block Grant: +$60 million ($43 million drug-related). This increase in the SAPT Block Grant will provide additional funding to states for treatment and prevention services. States use these funds to extend treatment services to pregnant women, women with dependent children, and racial and ethnic minorities.
  • Residential Substance Abuse Treatment (RSAT): +$7 million. This enhancement will expand total funding for the RSAT program to $77 million in FY 2003. The RSAT program is a formula grant that distributes funds to states to support drug and alcohol treatment in state corrections facilities.
  • Drug Courts: +$2 million. These additional resources will expand total funding for the Drug Courts program to $52 million in FY 2003. This program provides alternatives to incarceration by using the coercive power of the court to force abstinence and alter behavior through a combination of escalating sanctions, mandatory drug testing, treatment, and strong aftercare programs.

The President's FY 2003 Budget enhances our ability to protect our borders and cooperate fully in the international effort to combat drug trafficking. The following key highlights will enable us to disrupt the market at home and at the source:

  • Andean Counterdrug Initiative (ACI): $731 million. The FY 2003 Budget includes an increase of $106 million over funding enacted for the ACI account in FY 2002 for Colombia, Peru, Bolivia, Ecuador, Brazil, Venezuela, and Panama. This FY 2003 request includes resources to continue enforcement, border control, coca and poppy eradication, alternative development, institution building, and administration of justice and human rights programs. For Colombia, the FY 2003 funding will be used for several broad categories including: operations and maintenance of air assets provided with Plan Colombia supplemental funding; Colombian National Police and Army counternarcotics Brigade operational support; and herbicide application programs. The additional funding requested will support USAID-implemented humanitarian, social, economic and alternative development programs, support for vulnerable groups, and resources for justice sector reform projects.
  • Deepwater Project: +$500 million. This proposal continues to support the United States Coast Guard's Deepwater Project. The Deepwater Project focuses on the re-capitalization and modernization of the Coast Guard's assets including sensors and communications equipment for the aging deepwater cutters, aircraft and command centers. Although only a portion of this initiative is related to drug control, the re-capitalization of these assets will enhance the Coast Guard's ability to conduct counterdrug activities.
  • Border Control and Enforcement: +$76.3 million ($11.4 million drug-related). This enhancement for the Border Patrol includes hiring an additional 570 agents to enforce national borders and to combat international drug trafficking. For the new Border Patrol Agents, a portion of their time will involve drug control activities.
  • Southwest Border Prosecutor Initiative: $50 million. The President's 2003 Budget maintains funding of $50 million for the Southwest Border Prosecutor Initiative. This initiative provides critical support to counties along the Southwest Border for the costs of detaining and prosecuting drug cases referred to them by U.S. Attorneys.

Restructuring the National Drug Control Budget

The President has instructed the Federal Government to manage by results. Effectively managing the federal drug control program, which involves coordinating the work of more than 50 national drug control program agencies, presents unique problems that require creative solutions. Previously, our ability to manage anti-drug programs has been complicated by the methods used to calculate the drug control budget. The national drug control budget presented in the Strategy each year does not represent actual managed dollars. With a few exceptions, the dollars reported are not reflected as line items in the President's budget or in appropriations acts. Instead, they reflect percentages of total appropriations for agencies and programs, with a number of different methods used to estimate the portion of the funds dedicated to drug control.

Recent independent analyses commissioned by ONDCP, as well as ongoing, required reviews by Inspectors General, have identified weaknesses in the methodologies agencies use to measure spending related to drug control. These reviews are unambiguous; we need to reform the National Drug Control Budget. The Administration is developing a new way to report the drug budget, based on the following guidelines:

  • All funding items displayed in the drug budget should be readily identifiable line items in the President's Budget or agency budget justifications; and
  • The budget presentation should be simplified by eliminating several supporting agencies from the drug budget tabulation. Only agencies with a primary demand reduction or supply reduction mission should be displayed in the drug budget. Agencies with no, or little, direct involvement in drug control would be excluded from the revised drug budget presentation.

Furthermore, the budget presentation has historically included costs that are a consequence of drug use rather than expenditures aimed at reducing drug use. As these costs do not reflect judgments about drug policy, they would be excluded from the National Drug Control Budget. ONDCP, however, will continue to report these costs as part of the biennial report, Economic Costs to Society of Drug Abuse.

This proposal will enable the Administration, Congress, and the general public to distinguish between funding for drug control efforts and funding for the consequences of drug use. While this presentational change will decrease the amount of funding attributed to the National Drug Control Budget, it will not negatively affect the total size of our federal drug control efforts. In fact, this restructuring will improve our ability to manage those efforts by enabling policymakers to focus on managing programs genuinely directed at reducing drug use. The President's FY 2004 Budget will implement the proposed changes to the National Drug Control Budget.

Last Updated: April 24, 2002

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