MARCH 25, 2003

Thank you Mr. Chairman for holding this hearing. I particularly want to commend the work that you have done in crafting this legislation.

I fully support the goals of this bill. The American consumer has benefitted handsomely from recent advances in wireless communications services. I wish to work with my colleagues to make additional spectrum available so that consumers can soon benefit from the next generation of wireless services, known as "3G."

To accomplish that goal, the Congress must replace the current scheme wherein auction winners must pay twice -- once at auction and then again to move the government users -- with a sustainable and predictable funding mechanism to facilitate the movement of government spectrum users to new spectrum bands. While making this change, we must also ensure that the ability of our armed forces to protect America’s security is not harmed in any way.

I am concerned, however, that the legislation appears to lack sufficient accountability and congressional oversight over how proceeds deposited in the trust fund will be expended. Under this legislation, once the auction proceeds from the sale of an agency’s spectrum are deposited in the trust fund, they are then legally appropriated and may be spent. Spending is subject only to an accounting of costs by the Office of Management and Budget and the National Technology and Information Administration, and to a brief 30-day notification period for the relevant committees of the Congress.

Indeed, other than an annual report detailing the cost incurred in moving government users, the 30 days notice that this Committee and the appropriators will receive is the only nod toward Congressional oversight in the bill. Unfortunately, my experience with government agencies and, in particular, with the Department of Defense (DOD), indicates that a bit more oversight is necessary to ensure that scarce federal dollars are being spent wisely and in a manner that is consistent with what the Congress intended. Indeed, this Committee’s past oversight investigations have found many examples of wasteful spending by agencies, and particularly the Department of Defense.

I would also like to see whether it is possible, assuming that the auctions generate sufficient revenues, to create a second trust fund with the proceeds devoted to improving the technological abilities of our schools and our teachers. The quality of our Nation’s schools and their ability to ready students for the information economy of the 21st century is as central to our country’s security and its economic future as anything else that we will examine this year. I know that Mr. Grossman is here to discuss this very issue, and I look forward to receiving his testimony.

Mr. Chairman, your bill is a fine starting point. I look forward to working with you to improve upon it -- in particular, to ensure Congress is able to fulfill its institutional responsibility to make certain that federal dollars are properly accounted for. I believe we can resolve these concerns and work together to enact this important consumer bill.