[House Report 105-97] [From the U.S. Government Publishing Office] 105th Congress Report HOUSE OF REPRESENTATIVES 1st Session 105-97 _______________________________________________________________________ PROVIDING FOR THE CONSIDERATION OF H.R. 1469, THE EMERGENCY SUPPLEMENTAL APPROPRIATIONS BILL FOR FISCAL YEAR 1997 _______ May 14, 1997.--Referred to the House Calendar and ordered to be printed _______________________________________________________________________ Mr. Solomon, from the Committee on Rules, submitted the following R E P O R T [To accompany H. Res. 149] The Committee on Rules, having had under consideration House Resolution 149, by a nonrecord vote, report the same to the House with the recommendation that the resolution be adopted. Brief Summary of Provisions of Resolution The resolution provides for the consideration of H.R. 1469, the ``Emergency Supplemental Appropriations Bill for FY 1997'' under an open rule. The rule provides one hour of general debate divided equally between the chairman and ranking minority member of the Committee on Appropriations and waives all points of order against consideration of the bill. The rule further provides that the amendment printed in the rule shall be considered as adopted. All points of order against provisions in the bill for failure to comply with clause 2 (prohibiting unauthorized or legislative provision in a general appropriations bill) or clause 6 (prohibiting reappropriations in a general appropriations bill) of rule XXI, are waived, except as specified in the rule. The rule also waives all points of order against each amendment printed in this report which may only be offered in the order specified, shall be debatable for the time specified in this report equally divided and controlled by the proponent and an opponent, shall be considered as read, shall be offered only by the member designated in this report, and shall not be subject to further amendment or a demand for a division of the question in the House or in the Committee of the Whole. The rule grants priority in recognition to those Members who have pre-printed their amendments in the Congressional Record prior to their consideration if otherwise consistent with House rules. The rule also allows the Chairman of the Committee of the Whole to postpone votes during consideration of the bill, and to reduce the vote to five minutes on a postponed question if the vote follows a fifteen minute vote. The rule further waives points of order against all amendments for failure to comply with clause 2(e) of rule XXI (prohibiting nonemergency designated amendments to be offered to an appropriations bill containing an emergency designation). Finally, the rule provides for one motion to recommit, with or without instructions. Committee Votes Pursuant to clause 1(l)(2)(B) of House rule XI the results of each rollcall vote on an amendment or motion to report, together with the names of those voting for and against, are printed below. Rules Committee Rollcall No. 22 Date: May 14, 1997. Measure: Rule for the consideration of H.R. 1469, Emergency Supplemental Appropriations for fiscal year 1997. Motion by: Mr. Moakley. Summary of motion: To extend the debate time from 20 minutes to 30 minutes on the Automatic Continuing Resolution amendment. Results: Adopted 12-0. Vote by Members: Dreier--Yea; Goss--Yea; Linder--Yea; Pryce--Yea; Diaz-Balart--Yea; McInnis--Yea; Hastings--Yea; Myrick--Yea; Moakley--Yea; Frost--Yea; Slaughter--Yea; Solomon--Yea. Amendments Made In Ordered By the Rule for H.R. 1469--Supplemental Appropriations for FY 1997 (Listed in order they will appear in this report) 1. Kaptur/Riggs/Roukema/Roemer/Quinn--30 min.: Provides an additional $38 million in funding for the Special Supplemental Food Program for the Women, Infants and Children program. 2. McKeon--10 min.: Authorizes a commission on the cost of higher education and provides $650,000 to complete its work. 3. Dingell--10 min.: Provides protection in the amount of $300,000 for Monroe County, Michigan for costs incurred by Comair crash. 4. Thune--10 min.: Relating to Community Development Block Grants. 5. Traficant--10 min.: Adds new section regarding ``Buy American Requirements.'' 6. Neumann--20 min.: Strikes $2.4 million in advance FY 1998 funding for FEMA; rescinds $3.6 billion in undefined Budget Authority, with the distribution of this rescission to be made by the President within 30 days of enactment; strikes $3.8 billion in HUD rescissions. 7. Gekas/Solomon/Wynn--30 min.: Automatically provides a continuation of FY 1997 spending through the end of FY 1998, in absence of regular appropriations or a continuing resolution) at 100% of FY 1997 spending levels. (Senate version) 8. Diaz-Balart/Shaw/Meek/Ros-Lehtinen/Kennedy (RI)--20 min.: Postpones through the end of the fiscal year the cut-off of Supplemental Security Income and Medicaid payments to legal immigrants and rescinds $240 million for the Job Opportunities and Basic Skills program. Amendments made in order by the rule are as follows: 1. The Amendment To Be Offered by Representative Kaptur of Ohio or Representative Riggs of California or a Designee, Debatable for Not To Exceed 30 Minutes Page 5, line 15, after the dollar amount, insert the following: ``(increased by $38,000,000)''. Page 35, after line 25, insert the following: INDEPENDENT AGENCIES National Aeronautics and Space Administration national aeronautical facilities (rescission) Of the funds made available under this hearding in the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1995 (Pub. L. 103-327), $38,000,000 is rescinded. ---------- 2. The Amendment To Be Offered by Representative McKeon of California or a Designee, Debatable for Not To Exceed 10 Minutes Page 51, after line 23, insert the following new title: TITLE IV--COST OF HIGHER EDUCATION REVIEW SEC. 4001. SHORT TITLE; FINDINGS. (a) Short Title.--This title may be cited as the ``Cost of Higher Education Review Act of 1997''. (b) Findings.--The Congress finds the following: (1) According to a report issued by the General Accounting Office, tuition at 4-year public colleges and universities increased 234 percent from school year 1980-1981 through school year 1994-1995, while median household income rose 82 percent and the cost of consumer goods as measured by the Consumer Price Index rose 74 percent over the same time period. (2) A 1995 survey of college freshmen found that concern about college affordability was the highest it has been in the last 30 years. (3) Paying for a college education now ranks as one of the most costly investments for American families. SEC. 4002. ESTABLISHMENT OF NATIONAL COMMISSION ON THE COST OF HIGHER EDUCATION. There is established a Commission to be known as the ``National Commission on the Cost of Higher Education'' (hereafter in this title referred to as the ``Commission''). SEC. 4003. MEMBERSHIP OF COMMISSION. (a) Appointment.--The Commission shall be composed of 7 members as follows: (1) Two individuals shall be appointed by the Speaker of the House. (2) One individual shall be appointed by the Minority Leader of the House. (3) Two individuals shall be appointed by the Majority Leader of the Senate. (4) One individual shall be appointed by the Minority Leader of the Senate. (5) One individual shall be appointed by the Secretary of Education. (b) Additional Qualifications.--Each of the individuals appointed under subsection (a) shall be an individual with expertise and experience in higher education finance (including the financing of State institutions of higher education), Federal financial aid programs, education economics research, public or private higher education administration, or business executives who have managed successful cost reduction programs. (c) Chairperson and Vice Chairperson.--The members of the Commission shall elect a Chairman and a Vice Chairperson. In the absence of the Chairperson, the Vice Chairperson will assume the duties of the Chairperson. (d) Quorum.--A majority of the members of the Commission shall constitute a quorum for the transaction of business. (e) Appointments.--All appointments under subsection (a) shall be made within 30 days after the date of enactment of this Act. In the event that an officer authorized to make an appointment under subsection (a) has not made such appointment within such 30 days, the appointment may be made for such officer as follows: (1) the Chairman of the Committee on Education and the Workforce may act under such subsection for the Speaker of the House of Representatives; (2) the Ranking Minority Member of the Committee on Education and the Workforce may act under such subsection for the Minority Leader of the House of Representatives; (3) the Chairman of the Committee on Labor and Human Resources may act under such subsection for the Majority Leader of the Senate; and (4) the Ranking Minority Member of the Committee on Labor and Human Resources may act under such subsection for the Minority Leader of the Senate. (f) Voting.--Each member of the Commission shall be entitled to one vote, which shall be equal to the vote of every other member of the Commission. (g) Vacancies.--Any vacancy on the Commission shall not affect its powers, but shall be filled in the manner in which the original appointment was made. (h) Prohibition of Additional Pay.--Members of the Commission shall receive no additional pay, allowances, or benefits by reason of their service on the Commission. Members appointed from among private citizens of the United States may be allowed travel expenses, including per diem, in lieu of subsistence, as authorized by law for persons serving intermittently in the government service to the extent funds are available for such expenses. (i) Initial Meeting.--The initial meeting of the Commission shall occur within 40 days after the date of enactment of this Act. SEC. 4004. FUNCTIONS OF COMMISSION. (a) Specific Findings and Recommendations.--The Commission shall study and make findings and specific recommendations regarding the following: (1) The increase in tuition compared with other commodities and services. (2) Innovative methods of reducing or stabilizing tuition. (3) Trends in college and university administrative costs, including administrative staffing, ratio of administrative staff to instructors, ratio of administrative staff to students, remuneration of administrative staff, and remuneration of college and university presidents or chancellors. (4) Trends in (A) faculty workload and remuneration (including the use of adjunct faculty), (B) faculty-to- student ratios, (C) number of hours spent in the classroom by faculty, and (D) tenure practices, and the impact of such trends on tuition. (5) Trends in (A) the construction and renovation of academic and other collegiate facilities, and (B) the modernization of facilities to access and utilize new technologies, and the impact of such trends on tuition. (6) The extent to which increases in institutional financial aid and tuition discounting have affected tuition increases, including the demographics of students receiving such aid, the extent to which such aid is provided to students with limited need in order to attract such students to particular institutions or major fields of study, and the extent to which Federal financial aid, including loan aid, has been used to offset such increases. (7) The extent to which Federal, State, and local laws, regulations, or other mandates contribute to increasing tuition, and recommendations on reducing those mandates. (8) The establishment of a mechanism for a more timely and widespread distribution of data on tuition trends and other costs of operating colleges and universities. (9) The extent to which student financial aid programs have contributed to changes in tuition. (10) Trends in State fiscal policies that have affected college costs. (11) The adequacy of existing Federal and State financial aid programs in meeting the costs of attending colleges and universities. (12) Other related topics determined to be appropriate by the Commission. (b) Final Report.-- (1) In general.--Subject to paragraph (2), the Commission shall submit to the President and to the Congress, not later than 120 days after the date of the first meeting of the Commission, a report which shall contain a detailed statement of the findings and conclusions of the Commission, including the Commission's recommendations for administrative and legislative action that the Commission considers advisable. (2) Majority vote required for recommendations.--Any recommendation described in paragraph (1) shall be made by the Commission to the President and to the Congress only if such recommendation is adopted by a majority vote of the members of the Commission who are present and voting. (3) Evaluation of different circumstances.--In making any findings under subsection (a) of this section, the Commission shall takeinto account differences between public and private colleges and universities, the length of the academic program, the size of the institution's student population, and the availability of the institution's resources, including the size of the institution's endowment. SEC. 4005. POWERS OF COMMISSION. (a) Hearings.--The Commission may, for the purpose of carrying out this title, hold such hearings and sit and act at such times and places, as the Commission may find advisable. (b) Rules and Regulations.--The Commission may adopt such rules and regulations as may be necessary to establish the Commission's procedures and to govern the manner of the Commission's operations, organization, and personnel. (c) Assistance From Federal Agencies.-- (1) Information.--The Commission may request from the head of any Federal agency or instrumentality such information as the Commission may require for the purpose of this title. Each such agency or instrumentality shall, to the extent permitted by law and subject to the exceptions set forth in section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act), furnish such information to the Commission, upon request made by the Chairperson of the Commission. (2) Facilities and services, personnel detail authorized.--Upon request of the Chairperson of the Commission, the head of any Federal agency or instrumentality shall, to the extent possible and subject to the discretion of such head-- (A) make any of the facilities and services of such agency or instrumentality available to the Commission; and (B) detail any of the personnel of such agency or instrumentality to the Commission, on a nonreimbursable basis, to assist the Commission in carrying out the Commission's duties under this title. (d) Mails.--The Commission may use the United States mails in the same manner and under the same conditions as other Federal agencies. (e) Contracting.--The Commission, to such extent and in such amounts as are provided in appropriation Acts, may enter into contracts with State agencies, private firms, institutions, and individuals for the purpose of conducting research or surveys necessary to enable the Commission to discharge the Commission's duties under this title. (f) Staff.--Subject to such rules and regulations as may be adopted by the Commission, and to such extent and in such amounts as are provided in appropriation Acts, the Chairperson of the Commission shall have the power to appoint, terminate, and fix the compensation (without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title, or of any other provision, or of any other provision of law, relating to the number, classification, and General Schedule rates) of an Executive Director, and of such additional staff as the Chairperson deems advisable to assist the Commission, at rates not to exceed a rate equal to the maximum rate for level IV of the Executive Schedule under section 5332 of such title. SEC. 4006. FUNDING OF COMMISSION. (a) Appropriation.--There is appropriated, out of any money in the Treasury not otherwise appropriated, for fiscal year 1997 for carrying out this title, $650,000, to remain available until expended, or until one year after the termination of the Commission pursuant to section 4007, whichever occurs first. (b) Rescission.--Of the funds made available for ``DEPARTMENT OF EDUCATION--Federal Family Education Loan Program Account'' in the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1997 (as contained in section 101(e) of division A of Public Law 104- 208), $849,000 is rescinded. SEC. 4007. TERMINATION OF COMMISSION. The Commission shall cease to exist on the date that is 60 days after the date on which the Commission is required to submit its final report in accordance with section 4004(b). ---------- 3. The Amendment To Be Offered by Representative Dingell of Michigan or a Designee, Debatable for Not To Exceed 10 Minutes Page 23, line 2, insert before the period the following: ``: Provided further, That, notwithstanding any other provisions of law, of the unobligated balances under this heading from amounts made available in this or any other Act for fiscal year 1997 or any prior fiscal year, $300,000 shall be made available to Monroe County, Michigan, as reimbursement for costs incurred in connection with the crash of Comair Flight 3272''. ---------- 4. The Amendment To Be Offered by Representative Thune of South Dakota or a Designee, Debatable for Not To Exceed 10 Minutes Page 27, after line 23, insert the following: COMMUNITY PLANNING AND DEVELOPMENT Community Development Block Grants Fund For an additional amount for ``Community development block grants fund'' as authorized under title I of the Housing and Community Development Act of 1974, $500,000,000, to remain available until September 30, 2000, for use only for buy-outs, relocation, long-term recovery, and mitigation in communities affected by the flooding in the upper Midwest and other disasters in fiscal year 1997 and such natural disasters designated 30 days prior to the start of fiscal year 1997: Provided, That in administering these amounts, the Secretary may waive, or specify alternative requirements for, any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the recipient of these funds, except for statutory requirements related to civil rights, fair housing and nondiscrimination, the environment, and labor standards, upon a finding that such waiver is required to facilitate the use of such funds, and would not be inconsistent with the overall purpose of the statute: Provided further, That the Secretary of Housing and Urban Development shall publish a notice in the Federal Register governing the use of community development block grant funds in conjunction with any program administered by the Director of the Federal Emergency Management Agency for buyouts for structures in disaster areas: Provided further, That for any funds under this head used for buyouts in conjunction with any program administered by the Director of the Federal Emergency Management Agency, each State or unit of general local government requesting funds from the Secretary of Housing and Urban Development for buyouts shall submit a plan to the Secretary which must be approved by the Secretary as consistent with the requirements of this program: Provided further, That the Secretary of Housing and Urban Development and the Director of the Federal Emergency Management Agency shall submit quarterly reports to the House and Senate Committees on Appropriations on all disbursement and use of funds for or associated with buyouts: Provided further, That, hereafter, for any amounts made available under this head and for any amounts made available for any fiscal year under title I of the Housing and Community Development Act of 1974 that are used in communities affected by the flooding and disasters referred to in this head for activities to address the damage resulting fromsuch flooding and disasters, the Secretary of Housing and Urban Development shall waive the requirement under such title that the activities benefit persons of low- and moderate-income and the requirements that grantees and units of general local government hold public hearings: Provided further, That, hereafter, for any amounts made available for any fiscal year under the HOME Investment Partnerships Act that are used in communities affected by the flooding and disasters referred to in this head to assist housing used as temporary housing for families affected by such flooding and disasters, the Secretary of Housing and Urban Development shall waive (during the period, and to the extent, that such housing is used for such temporary housing) the requirements that the housing meet the income targeting requirements under section 214 of such Act, the requirements that the housing qualify as affordable housing under section 215 of such Act, and the requirements for documentation regarding family income and housing status and shall permit families to self-certify such information: Provided further, That the Secretary of Housing and Urban Development may make a grant from the amount provided under this head to restore electrical and natural gas service to areas damaged by the flooding and natural disasters: Provided further, That the entire amount made available under this head is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. Page 28, line 5, after the dollar figure insert the following: ``(reduced by $500,000,000)''. ---------- 5. The Amendment To Be Offered by Representative Traficant of Ohio or a Designee, Debatable for Not To Exceed 10 Minutes Page 51, after line 23, insert the following new section: buy-american requirements Sec. 3003. (a) Compliance With Buy American Act.--None of the funds made available in this Act may be expended by an entity unless the entity agrees that in expending the funds the entity will comply with the Buy American Act (41 U.S.C. 10a- 10c). (b) Sense of Congress; Requirement Regarding Notice.-- (1) Purchase of american-made equipment and products.--In the case of any equipment or product that may be authorized to be purchased with financial assistance provided using funds made available in this Act, it is the sense of the Congress that entities receiving the assistance should, in expending the assistance, purchase only American-made equipment and products. (2) Notice to recipients of assistance.--In providing financial assistance using funds made available in this Act, the head of each Federal agency shall provide to each recipient of the assistance a notice describing the statement made in paragraph (1) by the Congress. (c) Prohibition of Contracts With Persons Falsely Labeling Products as Made in America.--If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a ``Made in America'' inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations. 6. The Amendment To Be Offered by Representative Neumann of Wisconsin or a Designee, Debatable for Not To Exceed 20 Minutes Page 28, line 5, after the dollar amount, insert the following: ``(reduced by $2,387,677,000)''. Page 28, line 6, strike ``$2,387,677,000'' and all that follows through line 7. Page 35, strike lines 8 through 25. Page 51, after line 23, insert the following new section: further rescissions in nondefense accounts Sec. 3003. (a) Rescission of Funds.--Of the aggregate amount of discretionary appropriations made available to Executive agencies in appropriation Acts for fiscal year 1997 (other than for the defense category), $3,600,000,000 is rescinded. (b) Allocation and Report.--Within 30 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall-- (1) allocate such rescission among the appropriate accounts in a manner that will achieve a total net reduction in outlays for fiscal years 1997 through 2002 resulting from such rescission of not less than $3,500,000,000; and (2) submit to the Committees on Appropriations of the House of Representatives and the Senate a report setting forth such allocation. (c) Definitions.-- (1) The terms ``discretionary appropriations'' and ``defense category'' have the respective meanings given such terms in section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985. (2) The term ``Executive agency'' has the meaning given such term in section 105 of title 5, United States Code. ---------- 7. The Amendment To Be Offered by Representative Gekas of Pennsylvania or Representative Solomon of New York or a Designee, Debatable for Not To Exceed 30 Minutes On page 51, after line 23, add the following new title: TITLE IV--PREVENTION OF GOVERNMENT SHUTDOWN short title Sec. 401. This title may be cited as the ``Government Shutdown Prevention Act''. continuing funding Sec. 402. (a) If any regular appropriation bill for fiscal year 1998 does not become law prior to the beginning of fiscal year 1998 or a joint resolution making continuing appropriations is not in effect, there is appropriated, out of any moneys in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, such sums as may be necessary to continue any program, project, or activity for which funds were provided in fiscal year 1997. (b) Appropriations and funds made available, and authority granted, for a program, project, or activity for fiscal year 1998 pursuant to this title shall be at 100 percent of the rate of operations that was provided for the program, project, or activity in fiscal year 1997 in the corresponding regular appropriation Act for fiscal year 1997. (c) Appropriations and funds made available, and authority granted, for fiscal year 1998 pursuant to this title for a program, project, or activity shall be available for the period beginning with the first day of a lapse in appropriations and ending with the earlier of-- (1) the date on which the applicable regular appropriation bill for fiscal year 1998 becomes law (whether or not that law provides for that program, project, or activity) or a continuing resolution making appropriations becomes law, as the case may be; or (2) the last day of fiscal year 1998. terms and conditions Sec. 403. (a) An appropriation of funds made available, or authority granted, for a program, project, or activity for fiscal year 1998 pursuant to this title shall be made available to the extent and in the manner which would be provided by the pertinent appropriations Act for fiscal year 1997, including all of the terms and conditions and the apportionment schedule imposed with respect to the appropriation made or funds made available for fiscal year 1997 or authority granted for the program, project, or activity under current law. (b) Appropriations made by this title shall be available to the extent and in the manner which would be provided by the pertinent appropriations Act. coverage Sec. 404. Appropriations and funds made available, and authority granted, for any program, project, or activity for fiscal year 1998 pursuant to this title shall cover all obligations or expenditures incurred for that program, project, or activity during the portion of fiscal year 1998 for which this title applies to that program, project, or activity. expenditures Sec. 405. Expenditures made for a program, project, or activity for fiscal year 1998 pursuant to this title shall be charged to the applicable appropriation, fund, or authorization whenever a regular appropriation bill or a joint resolution making continuing appropriations until the end of fiscal year 1998 providing for that program, project, or activity for that period becomes law. initiating or resuming a program, project, or activity Sec. 406. No appropriation or funds made available or authority granted pursuant to this title shall be used to initiate or resume any program, project, or activity for which appropriations, funds, or other authority were not available during fiscal year 1997. protection of other obligations Sec. 407. Nothing in this title shall be construed to effect Government obligations mandated by other law, including obligations with respect to Social Security, Medicare, Medicaid, and veterans benefits. definition Sec. 408. In this title, the term ``regular appropriation bill'' means any annual appropriation bill making appropriations, otherwise making funds available, or granting authority, for any of the following categories of programs, projects, and activities: (1) Agriculture, rural development, and related agencies programs. (2) The Departments of Commerce, Justice, and State, the judiciary, and related agencies. (3) The Department of Defense. (4) The government of the District of Columbia and other activities chargeable in whole or in part against the revenues of the District. (5) The Departments of Labor, Health and Human Services, and Education, and related agencies. (6) The Departments of Veterans Affairs and Housing and Urban Development, and sundry independent agencies, boards, commissions, corporations, and offices. (7) Energy and water development. (8) Foreign assistance and related programs. (9) The Department of the Interior and related agencies. (10) Military construction. (11) The Department of Transportation and related agencies. (12) The Treasury Department, the U.S. Postal Service, the Executive Office of the President, and certain independent agencies. (13) The legislative branch. ---------- 8. The Amendment To Be Offered by Representative Diaz-Balart of Florida or Representative Meek of Florida or a Designee, Debatable for Not To Exceed 20 Minutes Page 51, after line 23, insert the following new section: extension of ssi redetermination provisions Sec. 3003. (a) Section 402(a)(2)(D)(i) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(D)(i)) is amended-- (1) in subclause (I), by striking ``the data which is 1 year after such date of enactment,'' and inserting ``September 30, 1997,''; and (2) in subclause (III), by striking ``the date of the redetermination with respect to such individual'' and inserting ``September 30, 1997,''. (b) The amendment made by subsection (a) shall be effective as if included in the enactment of section 402 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Page 51, after line 23, insert the following: job opportunities and basic skills (rescission) Of the funds made available under this heading in Public Law 104-208, there is rescinded an amount equal to the total of the funds within each State's limitation for fiscal year 1997 that are not necessary to pay such State's allowable claims for such fiscal year. Section 403(k)(3)(F) of the Social Security Act (as in effect on October 1, 1996) is amended by adding after the ``,'' the following: ``reduced by an amount equal to the total of those funds that are within each State's limitation for fiscal year 1997 that are not necessary to pay such State's allowable claims for such fiscal year (except that such amount for such year shall be deemed to be $1,000,000,000 for the purpose of determining the amount of the payment under subsection (l) to which each State is entitled),''.