II. Resources to Implement the Strategy

• NATIONAL DRUG CONTROL BUDGET
• FIVE-YEAR PLANNING
• MAJOR DRUG CONTROL SPENDING BY STRATEGY GOAL
• IMPROVING STRATEGY PERFORMANCE THROUGH RESEARCH, DEMONSTRATIONS, AND EVALUATION
• SUPPLY AND DEMAND RESOURCES
• METHODOLOGICAL CHANGES TO THE ESTIMATION OF THE DRUG CONTROL PROGRAM BUDGET

Progress on the drug front is not easily achieved without the funding necessary to educate our children, reduce violent drug crime, treat our citizens in need, protect our borders, and address foreign and domestic sources of supply. To support all of these goals, for Fiscal Year (FY) 1998, the President requests $16.0 billion to fund drug control efforts. This request represents an increase of $818 million over the FY 1997 enacted level of $15.2 billion, or a 5.4 percent increase. For the longer term, fiscal years FY 1998 - 2002, the Administration has identified critical funding priorities to implement the National Drug Control Strategy goals and objectives.

Figure 2-1, a historical perspective of Federal drug control spending, illustrates the six-fold increase in Federal resources for drug control since FY 1985, when drug resources totaled $2.7 billion.

Although Federal drug control spending remains an Administration priority, the allocation of resources for these efforts is tempered in FY 1998 and the outyears by an equally important priority of reaching a balanced budget. The President and his Administration are committed to the goals of the National Drug Control Strategy. However, they are also committed to the principles of the Budget Enforcement Act and the revised spending targets and pay-as-you-go discipline imposed by this legislation. The consolidated Federal budget will reach balance by FY 2002. This cannot be achieved without considerable fiscal restraint, but programs of vital national interest, including Federal drug control efforts, will receive adequate support and necessary enhancements.

FIVE-YEAR PLANNING

In formulating past drug control plans, resources for implementing the Strategy were principally focused on the coming fiscal year. The Strategy now has a longer view -- ten years. This approach provides the needed vision for examining how current programs should be extended or modified, and also helps to identify new programs that must be undertaken to address continuing or emerging drug control issues.

In conjunction with a 10-Year Strategy, ONDCP is committed to the development of a 5-Year National Drug Control Budget. This budget will identify the resource requirements needed to support the programs and initiatives for the early years of the 10-Year Strategy. As part of the FY 1998 budget process, ONDCP made progress working with the Office of Management and Budget (OMB), Departments and agencies in defining the parameters of a 5-year budget. To accompany the 1997 Drug Control Strategy, ONDCP has only presented budget details for FY 1998. However, over the next several months, ONDCP will continue work on a 5-Year Drug Control Budget concept.

Although outyear funding levels for particular programs still need to be formulated through a cooperative effort with ONDCP, OMB and the agencies, the Administration has already identified priority areas for funding. The Administration will continue to emphasize these priorities over the 5-year drug budget planning horizon. As part of the drug budget certification process, these program areas are considered ahead of other initiatives. Funding priorities for FY 1998 to FY 2002 include the following:

Reducing Youth Drug Use -- The centerpiece of our national counterdrug strategy remains the prevention of drug use by our children. Youth-oriented prevention programs today can significantly reduce the number of addicted adults who will cause enormous damage to themselves and our society tomorrow. Major initiatives targeting illegal drug use by youth and underage drinking and smoking include:

• A National Public Education Campaign -- ONDCP is developing a national public education campaign to supplement existing anti-drug public service announcements developed by the Partnership for a Drug Free America and other organizations and carried by broadcast and print media. This effort will encompass a broad public education campaign that warns our youth of the hazards of using illegal drugs and emphasizes the advantages of drug-free lifestyles.

• A Youth, Drugs and Driving Initiative -- The Department of Transportation and ONDCP are developing an initiative to address the problem of young people driving under the influence of illicit drugs. This initiative is aimed at two targets: (1) reduce the incidence of drug use by teens; and (2) reduce the amount of driving by teens under the influence of illicit drugs.

• Enhanced School-Based Prevention Programs -- Most schools have instituted drug prevention programs, yet school-age drug use is on the rise. Schools and institutions of higher education must do more to strengthen their programs to ensure that Federal funds are used more effectively to reduce the likelihood that youth will succumb to the temptation to use drugs. The Federal Government, in partnership with State and local governments and the private sector, will continue to develop options to improve the effectiveness of drug prevention education and to ensure that funds are used as effectively as possible.

• HHS Youth Substance Abuse Prevention -- In direct response to the goals of the Strategy, the Department of Health and Human Services (HHS) will focus activities on marijuana use among America's teenagers. This multi-year, phased effort consists of integrated components:
  • Raising public awareness and countering pro-use messages;
    
    
  • Awarding State Incentive Grants, designed to leverage Federal and State prevention resources for communities to reduce marijuana and other drug use by youth;
    
    
  • Applying scientific prevention research and evaluation findings;
    
    
  • Collaborationg with national youth-serving organizations in the prevention of substance abuse; and
    
    
  • Developing accessible data collection systems in States and communities.
    
  
  
• Marijuana Use -- Recently passed propositions which make dangerous drugs more available in California and Arizona send a confusing message to our youth about marijuana at a time when marijuana use among youth is climbing. The Administration will work with the Institute of Medicine of the National Academy of Sciences to design a rigorous review of the existing body of scientific knowledge related to the medicinal applications and harms of smoked marijuana.

Reducing the Consequences of Chronic Drug Use -- The Strategy also recognizes that significant reductions in illegal drug consumption cannot occur without addressing the problems of chronic drug use. Chronic drug users comprise about twenty percent of the drug using population, yet consume over two-thirds of the supply of drugs. By reducing the number of dependent chronic drug users, we can reduce the health, welfare, and criminal consequences of illegal drug use. Major program initiatives targeting chronic users include:

• Effective Rehabilitation and Treatment Programs -- The effectiveness of drug treatment programs has been repeatedly demonstrated by major studies and in national data showing the number of individuals who have successfully completed drug treatment programs. Efforts will continue to expand treatment capacity inside and outside the workplace and criminal justice system in order to prevent the problems of chronic drug use from overwhelming our work, health and criminal justice systems.

• Anti-Cocaine Medications Development -- Pharmacotherapies for cocaine dependency do not currently exist. Treatment options are limited to counseling, psychotherapy, and participation in self-help programs. The National Institute on Drug Abuse (NIDA) is devoting significant resources to developing medications to combat the effects of cocaine. ONDCP, in collaboration with NIDA, is sponsoring research to develop an artificial enzyme that would block cocaine's effect on the brain. Clinical trials may begin by the year 2000 at the earliest.

Reducing Drug-related Crime and Violence -- Domestic law enforcement has helped to take back our streets from the ravages of the drug trade. Of particular concern is the relationship between drugs and crime. A disproportionate number of the more than 12 million property crimes and almost two million violent crimes that occur each year are committed by drug users or traffickers. Major programs targeting the drugs and crime relationship include:

• Increased Police Presence -- More police and innovative approaches to policing, such as Community Policing, can enable communities to reduce drug related crime and to support local prevention and treatment efforts. Police officers working in neighborhoods can work with other government agencies, treatment providers, community-based drug prevention coalitions, and social service agencies to get drug users the help they need and drug traffickers in jail.

• Expanded Drug Courts -- Drug courts have proven their worth in showing that court-ordered rehabilitation and treatment programs can be successful in reducing drug use, drug crime, and alleviating prison and jail overcrowding. Instead of being directly sentenced to a period of incarceration, qualifying drug-users are placed in a court-ordered rehabilitation program that involves drug testing and intensive supervision and treatment.

• Managing and Treating Drug-dependent Offenders -- Effective drug courts and offender management programs provide integrated services and sanctions that include continuing close supervision; mandatory periodic drug testing, treatment, and aftercare services; and a system of escalating sanctions for those who fail to meet program requirements or do not make satisfactory progress. Offender management programs enable courts to divert users into treatment, to condition pretrial release or probation on participation in drug treatment, and to monitor treatment progress. Such comprehensive programs can reduce drug-related recidivism and break the cycle of drugs and crime.

• Implementation of Prison Drug Testing -- The connection between crime, the prison population, and drug use must be broken. New Department of Justice guidelines require states to develop anti-drug plans for prisoners and parolees over the next year. States that do not comply with the new guidelines by March 1, 1998, will lose Federal prison grant dollars.

• "Break the Cycle Between Drugs and Crime" Pilot Program -- ONDCP is currently sponsoring a $1 million pilot "Break the Cycle" program whose intent is to use resources available within the criminal justice system to coerce drug-involved offenders into rejecting drug use. The idea is a simple one -- we should use the coercive power of the criminal justice system to test and treat those drug addicts who come in contact with the criminal justice system each year. No offender should have his or her sanction curtailed or waived unless he or she is drug-free. Subsequent drug use while under the supervision of the criminal justice system should result in an immediate sanction.

• Improved High Intensity Drug Trafficking Area (HIDTA) Programs -- The ONDCP Director is authorized by Congress to designate geographic areas as HIDTAs and to allocate Federal resources to tie together Federal, State, and local law enforcement efforts in those areas. Properly targeted, the HIDTA program offers greater efficiency and effectiveness in countering drug effects in particularly troubled areas. The Administration is responding to Congressional interest in expanding and improving this program by developing a comprehensive methodology for earmarking priorities of needs, working with the Justice Department's Organized Crime Drug Enforcement Task Force Program.

Stopping the Flow of Drugs at U.S. Borders -- Unless we shield our borders from the flow of drugs, the United States will never stem illegal drug use. Interdiction is the key to stopping illegal drugs from crossing our borders and reaching our neighborhoods. Major initiatives supporting this effort include:

• Programs to Stop Drug Trafficking Across the Southwest Border. DEA estimates that as much as 70 percent of the cocaine entering the United States, 50 percent of the marijuana available in the United States, and five percent of the heroin sold in the United States comes across the Southwest Border. Drug traffickers are clearly exploiting the extensive legitimate commerce and traffic that crosses the busiest border in the world. ONDCP began a comprehensive review of the Federal effort to counter drug smuggling at the Southwest Border with a conference in El Paso in July 1996. These efforts will continue to be priorities for funding over the five-year budget planning period.

• A Strategy to Close the Caribbean "Back Door" -- The DEA estimates that the second most significant drug trafficking route into the United States is through the Caribbean, specifically Puerto Rico and the U.S. Virgin Islands. The Administration will continue to expand law enforcement investigations and establish flexible maritime and air interdiction programs to respond to drug trafficking in this region.

• A Hardening of Vulnerable Drug Entry Points -- As we interrupt drug trafficking along the Southwest Border and in the Caribbean, drug traffickers attempt to penetrate the United States border elsewhere. South Florida, for example, continues to be a hot-spot for drug smuggling and money laundering. New York City remains a major port of entry for heroin. The Administration will develop a comprehensive coordinating capacity that allows Federal resources to be focused more efficiently to prevent drug traffickers from importing illegal drugs. Existing organizations such as the three Joint Interagency Task Forces (East, West, and South), Operation Alliance, the Organized Crime and Drug Enforcement Task Forces, HIDTAs, and other cooperative interagency and task force efforts will comprise the building blocks of this effort.

Reducing Domestic and Foreign Sources of Supply -- Interdiction programs alone cannot prevent drugs from flowing into the United States and reaching our children. Our Strategy must target sources of supply as well. In fact, working with source and transit nations offers the greatest prospects for eliminating foreign sources of supply. Cocaine and heroin are illegal drugs produced outside the United States that cause the greatest harm to our citizens. Reducing the availability of these drugs is a priority. Initiatives supporting these efforts include:

• Reduction of Illegal Coca Cultivation in Peru -- Over 60 percent of the coca that is available for conversion to cocaine is grown in Peru. Targeting Peru for an intense program that comprises economic development, eradication, improving the rule of law, and sustaining and supporting the political will to attack the drug trade is a top international drug policy priority.

• Bilateral Cooperation With Mexico -- The High Level Contact Group established by the Federal Government in March 1996 has provided a productive framework for addressing drug issues. The group has met formally three times and subordinate working groups and separate bilateral initiatives are constantly at work. Cooperation and progress, however, has not been even across the board. The United States will work with the Mexican Government, recognizing concerns about Mexico's sovereignty, to enable it to withstand the corrupting influence of drugs.

• Reduction of Heroin Production and Trafficking -- Heroin production and trafficking is a transnational problem that cannot be addressed unilaterally or bilaterally. U.S. access and influence is extremely limited in Burma, Afghanistan, and Laos -- the key heroin producing countries. Efforts are underway to work against heroin trafficking organizations, in cooperation with other regional partners, and to develop a consensus in the area that will support development of a regionally-integrated anti-heroin effort.

• Attack on International Criminal Organizations -- Coordinated interagency approaches to target major drug kingpins have proven to be successful. These approaches must be continued to prevent new organizations from dominating the drug trade. Law enforcement, supported by intelligence efforts, will continue its efforts to disrupt and dismantle major kingpins and their organizations.

• Reduction of International Money Laundering -- Drug trafficking organizations launder large sums of drug money through domestic and foreign banks. The law enforcement agencies charged with disrupting money laundering schemes can help disrupt and destroy drug trafficking organizations by attacking their finances. The U.S. government will continue to tighten its own regulations and enforcement procedures to freeze, secure, and confiscate cash and criminally derived assets.

Maintaining Strategy Flexibility -- A long-term strategy must be versatile and contain the infrastructure to respond to new and emerging drugs. America's drug problem is not static, as evidenced by the recent emergence of methamphetamine. While the use of some drugs declines (e.g., cocaine), other substances may emerge or make a comeback (e.g., methamphetamine, marijuana, and heroin). Our Strategy must contain the means to track, monitor, and identify new trends so that programs can address them proactively. Major initiatives supporting this priority area include:

• Improved Counterdrug Intelligence Efforts -- Comprehensive and timely intelligence support is essential at all levels of the counterdrug effort. Close coordination and cooperation among the diverse law enforcement and foreign intelligence organizations and activities is critical if the potential of intelligence is to be realized. Strong, coordinated, effective intelligence programs will continue to be a funding priority. National-level intelligence organizations like the National Drug Intelligence Center (NDIC), Treasury's Financial Crimes Enforcement Network (FinCEN), and DEA's El Paso Intelligence Center currently make useful contributions and have yet greater potential.

• Enhanced Applications of Science and Technology -- Science and technology can help our national drug control efforts. The integration of emerging technologies and techniques can make our strategy more effective and will be targeted for new funding.

• Improved Scope, Quality, and Coverage of Drug-Related Data -- An effective drug strategy requires a knowledge base to delineate the nature and extent of the drug problem, develop a performance measurement system, and identify effective anti-drug programs. Efforts are underway to improve the scope, quality, and coverage of drug-related data, including increasing our knowledge about the drug/crime relationship by expanding the National Institute of Justice's Drug Use Forecasting System, and developing state level estimates of drug use among the household population.

MAJOR DRUG CONTROL SPENDING BY STRATEGY GOAL

The Administration's FY 1998 request includes critical enhancements to support the goals and objectives of the National Drug Control Strategy. Proposed FY 1998 spending by goal is summarized in Figure 2-2. The following section highlights FY 1998 spending associated with each goal.

1. EDUCATE AND ENABLE AMERICA'S YOUTH TO REJECT ILLEGAL DRUGS AS WELL AS ALCOHOL AND TOBACCO.

As with FY 1997, the Administration's National Drug Control Strategy puts a high priority on providing parents and communities with the resources to target youth. The Strategy recognizes that families, where parents teach moral values and a sense of personal and social responsibility, are far better equipped to assist children to resist the lure of drugs. The Strategy proposes comprehensive prevention programming to assist families and communities in educating youth. Highlights of the Administration's proposals in FY 1998 include the following:

• ONDCP: National Media Campaign -- $175 million is requested in FY 1998 from the Special Forfeiture Fund which will be available for a national media campaign targeting illegal drug consumption by youth. This initiative would rely on high-impact, anti-drug television advertisements aired during prime-time to educate and inform the public on the dangers of illegal drug use. This campaign would particularly focus on reaching adolescents and their parents.

• Education: Safe and Drug Free Schools and Communities program (SDFSC) -- $620 million is requested for FY 1998, a significant increase of $64 million (11.5 percent) over FY 1997. New resources would provide grant assistance to governors and State educational agencies for drug and violence prevention programs. In total, the SDFSC program serves 40 million students in 97 percent of the Nation's school districts.

• HHS: Youth Prevention -- $98 million is identified in the FY 1998 HHS budget for activities designed to prevent marijuana and other drug use among American youth. The initiative will provide State Incentive Grants, raise public awareness and counter pro-drug messages, and expand State level data collection activities.

• HHS: Centers for Disease Control (CDC) and Food and Drug Administration (FDA) -- $150 million in drug-related resources is requested for these two agencies in FY 1998. This total includes an increase of $44 million above FY 1997 to target tobacco use by minors. Of this increase, $15 million is requested for CDC to implement a new national program that provides 32 States and the District of Columbia with sufficient funding to implement multi-faceted tobacco prevention and control programs, including support for local governments and health communications campaigns. The programs will focus on youth and the effect that tobacco use has on health. As a complement to this program, new spending of $29 million is requested for FDA to implement and enforce the new Federal regulations on nicotine-containing tobacco products. The objective of these two initiatives is to promote and protect the health of our nation's youth by reducing the easy access and strong appeal of tobacco products to children. By focusing on tobacco use by youth, the Strategy recognizes that smoking is a gateway behavior to more serious drug use as a young adult.

• Corporation for National and Community Service -- $40 million in drug related resources is requested in FY 1998 to support the involvement of volunteers in responding to a wide range of community needs, including drug prevention, by reaching-out to at-risk youth and the communities in which they live.

2. INCREASE THE SAFETY OF AMERICA'S CITIZENS BY SUBSTANTIALLY REDUCING DRUG-RELATED CRIME AND VIOLENCE.

With the well-established correlation between drug use and violent crime, the Administration's drug strategy continues a commitment to make streets safe for all Americans. In FY 1998, major drug control efforts focusing on crime and violence include the following:

• Justice: Community Oriented Policing Services (COPS) -- Over $1.5 billion is requested for community-oriented policing grants in FY 1998. Of this total, $510 million is considered drug-related. This includes an increase of $41 million (9 percent) in drug-related resources over FY 1997. The COPS program serves as the vehicle for the Administration's strategy to fight violent crime and drug use by increasing the number of State and local police officers on the streets, promoting the use of community oriented policing techniques, and implementing training programs.

• Justice: Edward Byrne Memorial State and Local Law Enforcement Grant Program -- $580 million is requested for the Byrne Program in FY 1998. Of this amount, $458 million in drug-related resources ($362 million for Goal 2 activities) is available to provide financial and technical assistance to States and local units of government to control drug abuse and violent crime. Byrne grants support multi-jurisdictional task forces, demand reduction education programs involving law enforcement officers, programs that provide alternatives to incarceration, the Weed and Seed program, and programs to strengthen the operation of local judicial systems.

• ONDCP: High Intensity Drug Trafficking Areas Program (HIDTA) -- To build on the success of the HIDTA program, $140 million (includes $57.5 million for Goal 2; $67.9 million for Goal 5) is requested in FY 1998. Counties in 15 areas have been designated as HIDTAs: Southwest border, Los Angeles, Houston, Miami, and New York (established in 1990); Puerto Rico/U.S. Virgin Islands and Washington D.C./Baltimore (established in 1994); Atlanta, Chicago, Philadelphia/Camden (established in 1995); Pacific Northwest (Washington Cascades), Lake County (Indiana), Midwest (Iowa, Kansas, Missouri, Nebraska, and South Dakota – focused on methamphetamine use, production, and trafficking), Rocky Mountains (Colorado, Utah, and Wyoming), and Gulf Coast (Alabama, Louisiana, and Mississippi) (designated in 1996).

3. REDUCE HEALTH AND SOCIAL COSTS TO THE PUBLIC OF ILLEGAL DRUG USE.

Chronic drug users who fuel the continuing high demand for illicit drugs are responsible for much of the crime, violence, and health problems that plague the nation. Drug abuse treatment for this population is critical to reducing the consequences of drug use. The Administration has a number of initiatives in FY 1998 to reduce the economic costs of drug use, including the following:

• HHS: Prevention and Treatment Research -- A total of $358 million is requested in FY 1998 for the National Institute on Drug Abuse (NIDA), an increase of $30 million over FY 1997. An additional estimated $163 million is requested for the NIH Office of AIDS Research for AIDS-related activities in NIDA. These additional resources will further NIDA's efforts in conducting basic drug prevention and treatment research in support of Goal 3, as well as Goal 1. This initiative reinforces the Administration's commitment to fostering a scientific basis for Federal drug policies and pursing those approaches that work. Also requested in FY 1998 is $208 million for the National Institute on Alcohol Abuse and Alcoholism (NIAAA). Included in this total is $27 million for reducing alcohol abuse among teenagers. This $27 million is an increase of $1 million (4 percent) over FY 1997. These resources would support NIAAA's continuing research efforts focusing on alcohol abuse by youth.

• HHS: Youth Treatment -- $19 million is identified in the FY 1998 HHS budget to support innovative interventions for juvenile offenders which integrate community-wide education, law enforcement, substance abuse treatment, and mental health services; studies of treatment effectiveness for adolescents with co-occuring substance and mental health disorders; and expansion and assessment of comprehensive substance abuse treatment services for adolescents.

• Justice: Drug Courts -- $75 million is requested in FY 1998, an increase of $45 million (150 percent) over FY 1997. These grants support State and local criminal justice agencies to provide court-mandated drug treatment and related services to nonviolent offenders. Grants will be used to provide for the full range of services for offenders, including individual needs assessments, referrals to treatment, mandatory drug testing, graduated sanctions, and a full range of aftercare services.

• Justice: Youth Court and Anti-Truancy Programs -- $39.5 million (includes $27 million for Goal 3) in drug-related resources is requested in FY 1998 for the Youth Court Program and the Anti-Truancy, School Violence and Crime Intervention Programs. The Youth Court Program provides financial and technical assistance to the courts and court-related entities to develop and implement programs that focus on violent youth offenders within the court system. The Anti-truancy, School Violence and Crime Intervention Program provides grants to local communities to support juvenile crime intervention activities for youth who have had, or are at high risk of having, contact with the juvenile justice system.

• HHS: Performance Partnership Grant -- The Administration requests $973 million in drug-related resources for these grants, an increase of $7 million over FY 1997. This program helps to expand and enhance the availability, delivery, and quality of addiction prevention and treatment services nationally, while also enhancing State flexibility to target funds to local substance abuse treatment priorities.

• Justice: Substance Abuse Treatment in Federal Prisons -- $26 million is requested in FY 1998 for this program, an increase of $1 million over FY 1997. With this funding, the Federal Bureau of Prisons will be able to provide residential substance abuse treatment and arrange for appropriate transition services for all eligible inmates. Residential treatment includes individual and group activities, lasting from six to 12 months, provided in treatment facilities set apart from the general prison population.

• Justice: Grants for Substance Abuse Treatment in State Prisons -- $63 million is requested in FY 1998, an increase of $33 million over the FY 1997 level. This program provides funding for discretionary grants to States to develop and implement residential substance abuse treatment programs within their correctional facilities.

4. SHIELD AMERICA'S AIR, LAND, AND SEA FRONTIERS FROM THE DRUG THREAT.

Enforcement operations to interdict drugs in transit and at our borders continue to be a top priority of the National Drug Control Strategy. This focus is critical, since the vast majority of the cocaine now consumed in this country enters the United States along our border with Mexico. The current goal is to stop the flow of drugs at and between our ports of entry along the Southwest Border and Puerto Rico. FY 1998 funding in support of our border control efforts includes the following initiatives:

• Justice: INS Southwest Border Initiative -- $367 million in drug-related resources is requested for the Immigration and Naturalization Service (INS) in FY 1998, an increase of $48 million over FY 1997. This request includes $122.7 million in drug-related resources for the Border Patrol, an increase of 13 percent over the FY 1997 enacted level. This request provides for an additional 500 Border patrol agents (of which 75 are counted as drug-related) to stem the flow of illegal drugs and illegal aliens across the Southwest Border.

• Treasury: Customs Border Efforts -- $641 million in drug-related funding is requested for the U.S. Customs Service in FY 1998, of which $564 million supports interdiction efforts. Included in this request is $8.4 million to provide for 119 additional Customs staff at ports-of-entry along the Southwest Border and South Florida. In additional to these resources, new funding of $4.7 million in FY 1998 will allow Customs to field a Land Border Passenger Automation System to enhance interdiction efforts along the Southwest Border.

• Transportation: U.S. Coast Guard Interdiction Efforts -- $389 million in drug-related resources is requested for the U.S. Coast Guard in FY 1998, an increase of $53 million (16 percent) over FY 1997. These new resources will enhance maritime interdiction operations in the Caribbean and Puerto Rico, as well as provide needed support for Coast Guard's continuing enforcement efforts targeting cocaine trafficking.

5. BREAK FOREIGN AND DOMESTIC DRUG SOURCES OF SUPPLY.

The National Drug Control Strategy focuses on source countries and the associated trafficker transportation assets, production facilities, and criminal organizations. Interdiction in source countries has been successful in disrupting cocaine production. To further these efforts in FY 1998, the Administration proposes continuing the following programs:

• State: International Narcotics Control and Support for Peru -- The FY 1998 budget includes $214 million for the State Department's Bureau of International Narcotics and Law Enforcement Affairs (INL). Included in the INL budget is $40 million for Peru, an increase of $17 million over FY 1997. In FY 1998 this program will continue the implementation of the President's directive to place more emphasis on source countries, focus on programs that promote alternative development, dismantle narcotics trafficking organizations, and interdict drugs. It will also help fulfill the Administration's commitment for additional resources to support Peru's counternarcotics efforts.

• Justice: Drug Enforcement Administration (DEA) Initiatives -- $1.1 billion ($969.5 million in support of Goal 5) is requested for DEA in FY 1998, an increase of $92 million over FY 1997. FY 1998 enhancements include additional funding for heroin and methamphetamine investigations, as well as an expansion of DEA's Southwest Border Initiative. The Southwest Border Initiative will bolster Federal efforts to investigate, disrupt and dismantle major Mexican trafficking organizations operating through the region.

• Justice: Arrestee Drug Abuse Monitoring System (ADAM) -- $5 million is requested for this program in FY 1998. This enhancement will begin to expand ADAM to the nation's 75 most populous cities, with an annual outreach to test arrestees in outlying locations, including suburban towns, rural communities and tribal lands. The target locations for this program account for half of all reported murders nationwide. Understanding the impact of drugs in these areas is critical to the Administration's crime control efforts.

• State: Alternative Development -- The FY 1998 budget also continues support for eradication and alternative development programs to eliminate the illegal production of drug crops. These efforts create alternative income and employment opportunities for drug crop cultivators, helping governments take the politically unpopular step of eradicating drug crops, if necessary.

• International Organizations -- In conjunction with bilateral assistance programs, the FY 1998 budget continues efforts to encourage greater involvement from international organizations, including the United Nations, the Organization of American States, the Financial Action Task Force, and the World Bank.

• Justice, Interior, Agriculture: Marijuana Eradication -- In addition to international efforts, the Administration will continue to target the domestic production of illicit substances. The principal drug threat from domestic sources of supply is marijuana. A total of $14 million will be provided to continue DEA's Domestic Cannabis Eradication/ Suppression Program in FY 1998. And to curb growing on our parks and public lands, the Departments of Interior and Agriculture will spend about $27 million locating and destroying marijuana plants in FY 1998.

IMPROVING STRATEGY PERFORMANCE THROUGH RESEARCH, DEMONSTRATIONS, AND EVALUATION

Performance Measurement is critical in managing and coordinating the efforts of Federal, State, and local drug control agencies: it assesses changes in the severity and character of the nation's drug problem, evaluates program impact on reduction of the problem, and identifies ways to improve performance. In early 1996, the Office of National Drug Control Policy (ONDCP) initiated a comprehensive Performance Measurement System based on agency involvement and ONDCP leadership. This is in accordance with the Government Performance and Results Act of 1993 and the Crime Control Act of 1994 that require ONDCP to measure and report on the effectiveness of the Strategy.

ONDCP's Performance Measurement System is under development. By the summer of 1997, performance targets and performance measures will be in place for all Strategy Objectives, with 2002 and 2007 targets aligned to five-year budget cycles and a ten-year strategy. This process will rely on the combined efforts of ONDCP and Departments and agencies engaged in drug control efforts. In addition to a comprehensive performance measurements system, the National Drug Control Strategy must be based on sound theory, solid research, and rigorous individual program evaluation. With limited budget resources, decisions about the future course of action for drug control must reflect clear knowledge about what works. The Administration's FY 1998 drug budget request includes the following for ongoing research efforts:

• The Administration requests a total of $549 million for the National Institutes of Health, $522 million of which supports drug prevention and treatment research conducted by the National Institute on Drug Abuse (an increase of $33 million over FY 1997) for basic prevention and treatment research.

• Further, $27 million is requested in FY 1998 for the National Institute on Alcohol Abuse and Alcoholism (NIAAA) for alcohol prevention research focusing on adolescents.

• The Administration's request includes an enhancement of $5 million for the National Institute of Justice's (NIJ's) Arrestee Drug Abuse Monitoring System (ADAM). This enhancement will enable the NIJ to test arrestees quarterly for drug use in the nation's most populous cities, with an annual outreach to test arrestees in outlying locations including suburban towns, rural communities and tribal lands. This enhancement would allow NIJ to reinvest funds currently committed to DUF for basic research on the relationship between drugs and crime; learning how best to prevent early drug use and how to effectively treat those addicted to drugs, how to reduce the level of criminal activity that accompanies drug use, and how communities can alleviate the conditions that allow drug activity to flourish.

• The Strategy's research efforts also support ONDCP's Counterdrug technology Assessment Center (CTAC), with a total of $17 million requested in FY 1998. CTAC serves as the central counterdrug research and development center for the Federal government.

SUPPLY AND DEMAND RESOURCES

The Anti-Drug Abuse Act of 1988 requires ONDCP to report on spending for programs dedicated to supply reduction and demand reduction activities. Of the total $16 billion requested for FY 1998, $10.5 billion is for supply reduction programs and $5.5 billion is for demand reduction efforts. The percentage of drug resources devoted to supply reduction is 66 percent; 34 percent is for demand reduction programs. This is approximately the same percentage allocation as enacted for FY 1997. Of the total increase of $818 million in resources requested for FY 1998, $321 million is requested for supply reduction programs, and $497 million is requested for demand reduction programs.

Although examining the Federal drug control budget by supply and demand reduction components has been a conventional approach, the breakout of these data is a somewhat artificial accounting of the resources spent on Federal drug control. This accounting convention overlooks that many supply reduction activities are intrinsically functions of the Federal government. Control of our national borders and international drug control programs, for example, are performed only by the Federal government. In contrast, most demand reduction activities are shared responsibilities between various levels of government and the private sector. Further, the programs that are counted as supply reduction include a variety of criminal justice activities that are not narrowly focused on just drug control in the strictest sense. This includes, for example, the $1.0 billion in the drug budget spent on prosecution, or the $2.7 billion spent on Federal prisons. Therefore, including these resources in the supply/demand calculation overstates the importance of supply reduction in the overall Federal effort and understates the true proportion of the drug budget devoted to demand reduction activities.

METHODOLOGICAL CHANGES TO THE ESTIMATION OF THE DRUG CONTROL PROGRAM BUDGET

For FY 1998, the following agencies changed the methodologies used to compute the drug control portions of their respective budgets:

• Federal Bureau of Investigation (FBI) -- On review of its current drug control scoring methodology, FBI has revised the estimate of drug resources for the Bureau's Violent Crime Budget. Based on the Bureau of Justice Statistics Sourcebook of Criminal Justice Statistics which includes data on drug use by arrestees in 23 U.S. cities, FBI has modified the percentage of drug-related resources for its anti-violent crime activities from 50 to 60 percent.

• Federal Law Enforcement Training Center (FLETC) -- FLETC has reevaluated its drug budget methodology based on the eight largest Federal agencies training at the Center. From these data, and based on the greater drug enforcement demands placed on FLETC in recent years, the Center's drug budget is now estimated at 34 percent of the total budget for FY 1996, 50 percent in FY 1997, and 60 percent for FY 1998.

• Centers for Disease Control (CDC) -- Currently the CDC's drug control budget methodology includes resources targeted for HIV prevention activities among injecting drug users. The CDC has modified its drug control budget methodology to include resources focused on tobacco prevention activities that target underage youth.

• Food and Drug Administration (FDA) -- FDA is engaged in the inspection of narcotic treatment centers and hospital detoxification centers, as well as the review of new applications for drugs which alleviate narcotic dependency. FDA also chairs the Interagency Narcotic Policy Treatment Review Board. For the 1997 Strategy, FDA's drug budget presentation will be modified to score activities targeted at underage tobacco use prevention programs.

In addition to these changes, the following agencies were added or removed from the presentation of the Federal Drug Control Budget:

• Small Business Administration (SBA) -- SBA spends less than $50,000 per year disseminating information to small businesses about substance abuse prevention in the workplace. The SBA will continue these efforts, but given its relative size, ONDCP will no longer include SBA as part of the drug control budget.

• President's Crime Prevention Council -- Given the minimal drug control funding scored for the President's Crime Prevention Council, ONDCP no longer includes this organization as part of the drug control budget.

• Social Security Administration (SSA) -- Drug treatment is no longer an eligible expense under SSA's Supplemental Security Income Program (SSI). Consequently, SSA has been removed from the drug control budget.

• Office of Insular Affairs -- The Department of the Interior's Office of Insular Affairs is no longer considered a drug control agency. The minor drug control programs that were previously managed by that office have been discontinued.

• National Institute of Alcohol Abuse and Alcoholism (NIAAA) -- The NIAAA is an agency within the National Institutes of Health which focuses on alcohol abuse. Among the NIAAA's programs are some that conduct research on youth alcohol abuse. These programs have not previously been scored as drug-related. For the 1997 Strategy, NIAAA's youth alcohol programs are included in the drug control budget.

• Intelligence Community Management Agency (ICMA) -- This office oversees certain drug control programs previously presented as part of the Department of Defense drug control budget. Beginning in FY 1997, funding for these programs was transferred to ICMA.

• Treasury Interagency Crime and Drug Enforcement Account -- In FY 1998, the Administration proposes establishing a new Treasury account for reimbursable resources associated with Organized Crime Drug Enforcement Task Forces. These resources for Treasury enforcement bureaus were displayed in prior years as part of the Interagency Crime and Drug Enforcement account of the Department of Justice.