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IV. The National Drug Control Budget

Overview

The Federal drug control budget is the product of budget proposals and appropriations for more than 50 Federal agencies. The budget supports the five goals and thirty-one objectives of the National Drug Control Strategy and is structured to make progress toward the targets outlined in the Performance Measures of Effectiveness (PME) system. This chapter provides a broad perspective on the state of federal drug control spending and highlights spending in key drug control functional areas from an historical perspective. In addition, funding priorities for the National Drug Control Program are briefly reviewed, and a new ONDCP initiative to improve the integrity and reliability of drug control budget accounting across the government is described.

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Historical Perspective

For FY 2000, approximately $18.8 billion was appropriated for federal drug control programs, including supplemental funding of $1.3 billion to support Plan Colombia and drug control activities in the Andean region. The FY 2000 appropriations represent an increase of $6.9 billion, or 58 percent, over the FY 1992 level of $11.9 billion. The majority of the funding increases were achieved during the FY 1996—FY 2000 period, and funding for every major functional category of drug control programs, with the exception of domestic law enforcement, experienced larger increases in funding during this period.

Appropriations for International and Interdiction programs declined between 1992 and 1996. From FY 1996 to FY 2000, however, funding for these two functions increased by 46 percent and 432 percent, respectively. The increase in International programs is largely, but not entirely, accounted for by enactment of the $1.3 billion FY 2000 supplemental, based on an Administration request, to support Plan Colombia. Interdiction and international efforts support the Strategy’s Goal 4, “Shield America’s air, land, and sea frontiers from the drug threat,” and Goal 5, “Break foreign and domestic drug sources of supply.” Major initiatives include the Andean coca reduction initiative, Southwest border enhancements for Border Patrol personnel and Customs Service non-intrusive technology systems, and enhancements for Caribbean drug interdiction operations.

Federal Drug Control Spending: by Functional Area

Prevention funding was essentially stable between FY 1992 and FY 1996. Between FY 1996 and FY 2000, prevention funding increased by 48 percent—second only to the percentage increase in international funding. Increases for prevention programs were targeted at Goal 1 of the Strategy, “Educate and enable America’s youth to reject illegal drugs as well as alcohol and tobacco.” The establishment of ONDCP’s youth media campaign, funding for the Substance Abuse and Mental Health Services Administration’s (SAMHSA) State Incentive Grants program, increased funding for Youth Tobacco prevention in the Department of Health and Human Services and additional funding for Office of Justice Programs drug prevention activities represent several of the key budget priorities supporting the Strategy.

Treatment funding increased by 18 percent between FY 1992 and FY 1996 and 26 percent between FY 1996 and FY 2000. Drug treatment funding primarily supports Goal 3 of the Strategy, “Reduce the health and social costs to the public of illegal drug use.” A major new treatment program in SAMHSA, the Treatment Capacity Expansion Program, along with funding enhancements for the SAMHSA substance abuse block grant and criminal justice treatment programs, all received significant funding increases over the last four years.

Domestic Law Enforcement funding increased by 42 percent between FY 1992 and FY 1996. From FY 1996 to FY 2000, funding for these activities increased by a more modest 22 percent. Domestic law enforcement activities primarily support Goal 2 of the Strategy, “Increase the safety of America’s citizens by substantially reducing drug-related crime and violence.” Funding enhancements for domestic law enforcement activities have supported several key investigations and intelligence initiatives within the Drug Enforcement Administration and the Federal Bureau of Investigation. In addition, ONDCP’s High Intensity Drug Trafficking Area Program has been expanded to thirty-one HIDTA areas, up from fifteen in FY 1996.

Several factors (in addition to the Plan Colombia supplemental noted above) account for the increased spending, particularly after FY 1995. One major reason, especially for the increases in domestic law enforcement, is the effect of the Violent Crime Control and Law Enforcement Act of 1994, which was enacted with Presidential and bipartisan Congressional support and provided a balance between law enforcement, prevention programs, and tough new sanctions in federal law. The 1994 Act authorized funding to support, among other things: putting 100,000 police officers on the streets in community policing programs; the establishment of drug courts to provide supervision and specialized services to offenders with rehabilitation potential; expanded substance abuse treatment for federal and state prisoners; additional federal agents to secure our borders; and grant programs to help prevent our Nation’s youth from using drugs. The Act also established a new Violent Crime Reduction Trust Fund as a source of funding for programs authorized in the legislation. Much of the subsequent funding increases for drug control programs are attributable, in part, to enactment of this bill.

A second factor contributing to the increased funding was process begun by ONDCP in 1996 for developing a 10-year National Drug Control Strategy, a 5-year budget to support the Strategy, and the Performance Measures of Effectiveness (PME) to assess progress towards the goals of the Strategy. In addition, ONDCP began to issue funding priorities to guide the development of agency drug control budgets. The establishment of this comprehensive process has enabled to work in concert with drug program agencies, the Office of Management and Budget, and the Congress to achieve funding increases for drug control programs.

Federal Funding Priorities

By law (21 U.S.C. § 1703(b)(8)), ONDCP must provide, by July 1 of each year, drug control funding priorities to the heads of departments and agencies with responsibilities under the National Drug Control Program. These funding priorities are to cover a five-year planning period. On June 28, 2000, ONDCP provided the Cabinet with a summary of drug control funding priorities for FY 2002 to FY 2006. The funding priorities cited by ONDCP include the following critical program areas:

  • Support for Plan Colombia and drug control activities in the Andean region—The democratically elected government of Colombian President Andres Pastrana devised a comprehensive, integrated strategy, Plan Colombia, to address Colombia’s drug and interrelated social and economic troubles. The United States’ involvement in Plan Colombia has five components, centered around reducing the supply of Colombian drugs to the United States: implementing the Colombia initiative in southern coca growing areas; increased drug interdiction; greater support of Colombian National Police eradication efforts; alternative economic development; and assistance to boost Colombia’s local and national governing capacity, including enhanced justice and human rights protection. In FY 2000, Congress provided emergency supplemental appropriations of $1.3 billion for Plan Colombia.

  • National Youth Anti–Drug Media Campaign—The Media Campaign uses paid media messages to change youth attitudes about drug use and its consequences. Targeted, high impact, paid media ads—at both the national and local levels—are the most cost effective, quickest means of changing drug use behavior through changes in adolescent perceptions of the danger and social disapproval of drugs. It is also the most cost effective means of reaching baby-boomer parents who may be ambivalent about sending strong anti-drug messages to their children.

  • Community Coalitions—This effort provides technical assistance to community groups on forming and sustaining effective community and anti-drug coalitions that prevent the use of illegal drugs, alcohol, and tobacco by youth. Sustained and comprehensive prevention efforts at the community level are required to deliver a constant and effective anti-drug message.

  • Criminal Justice Treatment Programs. This priority will increase the capacity of the criminal justice system to refer addicts and heavy drug users to treatment and rehabilitation and employ sanctions and incentives to foster treatment retention, compliance and completion. Activities involve extensive collaboration between public safety and public health officials and focus primarily on non-incarcerated and post-incarcerated juvenile and criminal justice populations. Through drug testing, sanctions, and treatment programs, the number of persons who come into contact with the criminal justice system will be reduced by decreasing the number of repeat drug-related offenders.

  • Drug Courts.—The criminal justice system often fails to subject nonviolent, substance-abusing adult and juvenile offenders to intervention measures that provide the sanctions and services necessary to change their behaviors. The Drug Court program uses the coercive power of the court to force abstinence and alter behavior with a combination of escalating sanctions, mandatory drug testing, treatment, and strong aftercare programs.

  • Close the Public System Treatment Gap—This priority is aimed at reducing the gap between those who are actively seeking substance abuse treatment and the capacity of the public treatment system. This will be accomplished through a variety of approaches, including grant assistance to increase treatment capacity, with a focus on targeted treatment capacity, adolescent treatment, and outreach for chronic users and addicts, including their families. The gap will also be addressed by efforts to promote parity for substance abuse treatment through health insurance programs.

  • School Drug-Prevention Programs—The Strategy has focused national attention on the need to educate and enable America’s youth to reject illegal drugs as well as alcohol and tobacco. Support for effective drug education programs is critical for changing attitudes and behaviors. This funding priority includes programs implemented by the Department of Education in conjunction with other federal agencies that support local educational agencies and communities in developing programs that create safe, disciplined, and drug-free learning environments and promote healthy childhood development.

  • High Intensity Drug Trafficking Area (HIDTA) Programs—Over the five-year planning period, ONDCP’s HIDTAs will continue activities that will improve their efficiency and effectiveness through improved intelligence and resource sharing among local, state, and federal law enforcement agencies, resulting in a reduction of illegal drug availability and related violent crime.

  • Southwest Border Programs—This initiative is associated with improved security and enhanced drug interdiction along all U.S. air, land, and sea frontiers and at all ports-of-entry. Controlling borders and ports-of-entry is vital in order to ensure the rule of law and prevent the flow of illegal drugs. This priority includes support for the Immigration and Naturalization Service, Customs, Coast Guard, and other federal law enforcement agencies, as well as coordination with state and local agencies along the border. This priority also includes advanced technologies, which unequivocally identify the presence of drugs and contraband in cargo, containers and conveyances at ports-of-entry.

  • Intelligence Architecture Support—The General Counterdrug Intelligence Plan (GCIP), approved by the President on February 6, 2000, is the Administration’s blueprint to streamline and enhance intelligence and law enforcement information sharing throughout the national counterdrug community. Among the GCIP’s 73 action items is the creation of a three-tiered coordination and problem-resolution mechanism, which includes a policy guidance committee at the Cabinet level, an interagency coordination group, and a full time interagency support staff. This three-tiered mechanism will ensure effective and collaborative counterdrug intelligence sharing across the drug law enforcement, interdiction, policy, and intelligence communities. It will also oversee the implementation of the GCIP, to include action items that support various intelligence, interdiction, and drug law enforcement activities.

  • Regional Interdiction Architecture—This program area centers on efforts to infuse U.S. interagency interdiction forces with high-technology capabilities and complete activities to reestablish counterdrug support capabilities resident in U.S. military bases in Panama and other locations throughout the region. This priority supports regional counterdrug operations through aviation and maritime operations support, pierside destructive search support, small unit training, and small boat operations and training.

Drug Budget Accounting Improvements

The National Drug Control Budget includes funding in over 50 federal agencies and accounts. Each agency takes responsibility for carefully accounting for its drug control resources. For the drug budget to be a helpful tool for policymakers, the Congress and the public, it must be presented with an appropriated degree of accuracy and consistency. To ensure the integrity of the methods used to account for drug spending, part of the 1998 law (21 U.S.C. § 1704(d)) that reauthorized the Office of National Drug Control Policy (ONDCP) mandates that the Director of ONDCP shall, “(A) require the National Drug Program agencies to submit to the Director not later than February 1 of each year a detailed accounting of all funds expended by the agencies for National Drug Control Program activities during the previous fiscal year, and require such accounting to be authenticated by the Inspector General for each agency prior to submission to the Director; and (B) submit to Congress not later than April 1 of each year the information submitted to the Director … [by the agencies].”

In order to implement this law, since April 1999 ONDCP has worked closely with agency Chief Financial Officers (CFO) and Inspectors General (IG) to develop the form and content of agency drug accounting reports. As a result of this interagency process, on December 17, 1999, ONDCP issued to all drug control agencies a Circular, Annual Accounting of Drug Control Funds. This Circular focuses on disclosures and assertions that each agency must make regarding its drug budget methodology. Generally, drug control funding is not separately accounted for in agency financial systems of record. Drug funding is an estimate, based on individual agency drug methodologies for attributing a portion of agency budgets to drug control activities, such as treatment, prevention, interdiction, and several other drug control functions. Therefore, apart from the accuracy and reliability of agency financial systems, the most important aspect of each agency’s drug funding calculations is its drug budget methodology.

Although many agencies were able to complete this exercise successfully for FY 1999, the first year covered by this requirement, some agencies had difficulty in presenting a detailed accounting of funds that could be authenticated by their IG. To address the deficiencies identified in agency drug budget methodologies, ONDCP has embarked on an effort to improve these important calculations so that they more accurately reflect counterdrug activities across the government. These improvements will be an iterative process, which will occur over the next few fiscal years.

ONDCP is committed to improving the accuracy and reliability of all financial data associated with the drug control program of the President. In support of this, ONDCP has contracted with independent experts to assist in the analysis of drug budget deficiencies highlighted by Department IGs. This is part of ONDCP’s continuing work with agencies to improve their reporting on critical drug-related financial statistics. ONDCP will keep the public apprised of progress in this area and fully disclose any modifications to agency drug budget accounting that would significantly affect how this information is presented. The annual accounting of drug control funds now required by law will serve as a valuable tool to assist in these important efforts.

FY 2000 appropriations are used in this chapter because precise numbers for FY 2001 drug appropriations were not available at the time the Strategy was prepared. For FY 2002, the incoming Administration will submit a proposed budget, including funding for drug control programs. That budget proposal is expected in Spring 2001.