April 13,2005


The Honorable John Walters
Director
Executive Office of the President
17th Street, N.W.
Washington, DC 20503


Dear Director Walters:


In examining the President's FY 2006 budget request for the Drug Free Communities(DFC)
program, we are concerned about how the proposed level funding of the program, combined with
the announced changes in funding levels, may affect the sustainability of the current grantees
and the Community Anti-Drug Coalition Institute (the Institute). To better understand the impact
ofthe President's FY 2006 budget request on the continued fiscal health of the overallprogram,
including the Institute, we would appreciate your response to the following questions.


In an effort to facilitate a prompt response, we have attached a series of tables that we would like
filled in response to the following questions. Please include information beginning with 1998"
the first year of this program, so that long-term funding trends, if any, can be demonstrated.


As Congress will soon need to consider the possibility of renewing this program, please include
out-year estimates, where appropriate, assuming the currentprogram is re-authorized without any
fiscal changes for an additional 5 years. Your response is requested no later than May 1, 2005.


1. What is the total number ofDFC grants that have been awarded for each year of the
program? How many ofthose grants were renewed in each year ofthe funding cycle?
Please catagorize grant recipients by the first year in which they received a DFC grant,
and please separate year-6 grant awards from new, year 1 grant awards beginning in 2003.
Please DO NOT include Coalition Mentoring (CM) grant recipients.


2. What is the total number of CM grants that have been awarded for each year of the
program? How many of those grants were renewed in each year of the funding cycle?
Please catagorize grant recipients by the first year in which they received a CM grant.


3. How much was spent each year in new DFC grant awards? How much was spent each
year for each class of continuation ofDFC grants? What are the projected out-year
funding implications, assuming 100%renewal, for all existing DFC grants until they
complete their current 5-year funding cycles? PleaseDO NOT include Coalition
Mentoring (CM) grant recipients.


4. How much was spent each year in new CM grant awards? How much was spent each
year for each class of continuationCM grants? What are the projected out-year funding
implications, assuming 100%renewal, for all existing grants until they complete their
current 2-year funding cycles?


5. How much was spent each year for Administrative costs for this program? For the
Coalition Institute? Other expenses not identified elsewhere?


6. FY 2005 is the first year that grantees in years four and five will not see their continuation
grant award amounts reduced.

a. How will this affect granteeswho first received funding in 2000, and who saw
their funding reduced in FY 2004?

b. How will this affect the number of new grants that can be awarded in FY 2005
and FY 2006 from expiring grant funds?

c. What other financial implications, if any, will this adjustment have on other
aspects of the program (administrative costs, new grants, etc)?

d. If the DFC program is funded in FY 2006 at the level requested by the President,
will there be enough funding to continue all existing grants (DFC and CM), pay
expected administrative costs, given the year four and year five adjustment? If
not, why not, and how much of a short fall is there?


7. We understand that applications are currentlybeing accepted for the FY 2005 grant cycle,
and therefore any informationyou may be able to provide about FY 2005 expenditures
for the Drug Free Communities Grant program will be estimates. However, there are also
several fixed-cost funding items (administrative costs, the Institute, etc) that are
associated with this program, and we believe that it is reasonable to expect you to be able
to provide estimates on the quantity and funding level of grants for FY 2005 and FY
2006, based on your historical experience with this program. Please incorporate these
estimates into the appropriatepositions in the attached tables.

a. How many new DFC grants, estimated to the nearest 10, do you expect to award
in FY 2005?

b. How many new CM grants?

c. Of those, how manywill be funded from new FY 2005 money?


d. How many will be funded from expiring grant funds that stayed in the base?


e. What are the projected out-year funding implications, assuming 100%renewal,
for these DFC grants until they complete their current 5-year funding cycles?


f. What are the projected out-year funding implications, assuming 100% renewal,
for all existing CM grants until they complete their current 2-year funding cycles?


g. What portion of the FY 2005 appropriation will be needed to cover administrative
costs?


h. What portion of the FY 2005 appropriation will be needed to cover the Institute?

8.If Congress agrees to fund this program at the President's requested level of $80 million
for FY 2006:

a. How many new DFC grants, estimated to the nearest 10,do you expect to be able
to award in FY 2006?


b. How many new CM grants?


c. How much will have to be reserved to fully renew all eligible existing grantees?


d. What are the projected out-year funding implications, assuming 100%renewal,
for all existing DFC grants until they complete their current 5-year funding
cycles?


e. What are the projected out-year funding implications, assuming 100%renewal,
for all existingCM grants until they complete their current 2-year funding cycles?
Again, Please incorporate these estimates into the appropriate positions in the attached
tables.

9. How many total applications were received by ONDCP for each fiscal year of this
program? For each fiscal year, how many applications were sent to peer review?


10. Has the close out of Justice's grant management responsibilities made any additional
funds available? If so, how much, how do you intend to use it, and by what date does this
money need to be obligated?


11. As you know, Congress provided funding for the Institute for FY '05 was $2 million.
The requested funding for FY '06 was requested at $750K. As with the DFC grants and
the CM grants, we are interested in what this proposed change in funding will have on the
ongoing performance and effectiveness ofthe Institute.

a. What level and types of technical assistancedo you expect the Institute to provide
to FY '05 grantees?


b. What level and types of assistance do you expect the Institute to provide to
nascent coalitions?


c. Do you anticipate any loss of capacityby the Institute, should Congress agree to
fund the Institute at the President's requested level? What services, if any, do you
expect the Institute would be unable to provide?


d. If there are services that the Institute will be unable to provide if funded at the
$750K,what effects, if any, do you anticipate this will have on the overall
program?

12. If FY 2006 is funded at the President's request of $80 million, with $2 million for the
Drug Free Communities Institute (the Institute), rather than the $750K that was requested:


a. What, if any, effect will this have on funding for existing grants?


b. What, if any, effect will this have on the ability to make new grant awards for FY
2006?


c.What, if any, effect will this have on the administrative costs ofthis program?


13.If FY 2006 is funded at the President's request of $80 million, with the requested $750K
provided for the Institute:
a. What effect will this have on the ability of the Institute to fulfill its mission?


b. What services currentlyprovided by the Institute, if any, would be lost?


c. What services currently provided by the Institute, if any, would you expect would
be taken over by other entities? Please identify any such entities, and what role
you expect each entity to play.


Thank you in advance for providing all of the infonnation and data requested above.
Sincerely,

Charles E. Grassley


Joseph R. Biden, Jr.

Rep. Sandy Levin