THE WHITE HOUSE

Office of the Press Secretary

Final Y2K Readiness Report Shows Most Areas Prepared

November 10, 1999

Today, President Clinton will announce a report from the President's Council on Year 2000 Conversion, which says that major breakdowns in key economic and infrastructure sectors now appear unlikely. Key sectors of our economy, including electric utilities, transportation, telecommunications and finance, have undertaken satisfactory conversion, testing, and contingency planning to make a smooth transition into the Year 2000. President Clinton also will announce that 99 percent of the federal government's mission critical systems are compliant, and last month made a smooth transition to Fiscal Year 2000. Finally, the report highlights remaining areas of concern and federal efforts to help address them.

Federal Agencies and Major Economic Sectors Ready For Y2K: Thanks to America's hard work on the Y2K problem, serious disruptions in key domestic sectors and the federal government are unlikely. These include:

• Federal Services: 99 percent of the federal government's mission-critical systems are Y2K compliant. The remaining 94 systems are expected to be compliant well before December 31. As a result, everything from air-traffic control to Social Security payments will work just as they should. The federal government made a smooth transition to Fiscal Year 2000 last month with the help of preparation and contingency planning.
• Financial Services: Virtually all federally insured financial institutions and all eight securities exchanges have successfully completed Y2K planning and testing.
• Electric Power: Distribution entities handling 96 percent of America's electricity needs are Y2K-ready.
• Telecommunications: The largest local and long-distance carriers, accounting for 92% of access lines, have completed 100 percent of their Y2K remediation plans. Over 90 percent of smaller telephone companies have also completed their Y2K efforts.
• Air and Rail Travel: Major U.S. airlines have completed 99 percent of their remediation and testing and 85% of their contingency planning. An independent review has confirmed that the four major freight railroads are ready for Year 2000. All FAA systems were fully compliant in July 1999.
• Oil and Gas: 90 percent of oil and gas companies are ready for Y2K.

Remaining Y2K Concerns: The report expressed concern over organizations that are lagging behind in their completion dates or are hoping to make repairs once problems arise. These concerns include:

• Local Governments: Only 50 percent of local "911" call centers are compliant.
• Health Care: Problems could arise with billing and medical records systems at smaller health care providers.
• Education: One-third of elementary and secondary school districts and post-secondary institutions are not Y2K ready. Problems could arise with student records, payroll and computer instruction.
• Small Businesses: An April 1999 National Federation of Independent Business (NFIB) study said that 28 percent of businesses with potential Y2K problems planned to do nothing to prepare for the date change.
• International Concerns: Most of the United States' developed trading partners are in good shape. Canada and Mexico both reported high degrees of readiness for cross-border trade. Meanwhile, the State Department has assembled information on Y2K readiness and risks to be included on the Department's Consular Information Sheets [www.state.gov]. The Department will update the information and issue travel advisories where necessary.

Administration Actions To Prepare For Year 2000: The President's Council has been a proactive force to ease the transition into the Year 2000. However, much work remains. Over the next two months the Council will do the following:

• Y2K readiness planning: The Council's website [www.y2k.gov] and toll-free phone number (1-888-USA-4-Y2K) offer help to small businesses, individuals and organizations to plan for the transition.
• Contingency planning: The Council will emphasize the importance of back-up plans for organizations at all levels -- as well as individuals and families. Its recently released booklet: Y2K and You includes a checklist for individual planning.
• Monitoring and Response: The Council will also begin monitoring critical government and private sector activities to make recommendations for federal responses to Y2K-related difficulties.
• Continuing Role: Not every Y2K problem will be evident on January 1, 2000. Many problems may surface days or even weeks later.

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