After almost a year of systematic investigation, a special Senate committee warns in a report to be released within days that all segments of the U.S. economy -- from hospitals to electric power plants -- remain 'at risk' from the year 2000 computer problem that looms less than one year away.

The sober study -- a draft was obtained by Knight Ridder Newspapers -- concludes that while both government and business have worked hard to correct the Y2K problem, their efforts began late, remain insufficient and consequently some incalculable level of economic disruption is inevitable. 'Make no mistake,' the Senate panel's co-chairmen warn in a letter to their colleagues at the report's front, 'this problem will affect us all individually and collectively in very profound ways. ... It will indeed impact individual businesses and the global economy. In some cases, lives could even be at stake.'

Workers of the Federal Emergency Management Agency, are gearing up for a potential Y2K emergency, predicted to happen when some computers fail to recognize the year 2000 and cease to function, CNN reported. "Given the current level of information available, we should prepare for Y2K as we prudently prepare every year for a potential winter storm," said FEMA Deputy Director Mike Walker.

FEMA has planned a national Y2K readiness exercise for June. "If preparing for Y2K helps prepare America for earthquakes, hurricanes or floods or anything like that, it will have been well worth the effort," said Walker.

Many federal agencies in America are still far behind where they should be in fixing millennium bug computer problems. A report from the U.S. House of Representatives subcommittee on government management, information and technology released yesterday said that government agencies are doing better but “singled out the US Federal Aviation Administration, the State Department, and the Agency for International Development for failing to prepare for the Year 2000 bug.” It also said, “The departments of Agriculture, Defense, and Health and Human Services also are lagging behind in Y2K computer readiness.”

The Representative Stephen Horn of California was quoted as saying, "Although the problem of converting these systems to the year 2000 was recognized long ago, its lack of attention -- inside and outside the federal government -- has turned this manageable problem into a potential crisis.” The Wired News article continued: “…the report said the overall grade for the federal government was still an unacceptable C-plus, on a scale of A, the highest mark, to F, for failing. The report flunked the Department of Transportation, including the FAA. It warned that half of their critical computer systems were not yet Y2K compliant.”

Our nation’s capital is realizing that it’s government is far behind where it should be in dealing with millennium bug computer problems. Less than 1 percent of Washington's 200 key computers -- in other words, just one -- have been fixed so far. The rest aren't expected to make it in time.

We should not be surprised because the city’s government is best known for its unparalleled sloth and incompetence. As far back as last fall, Congress was warned that the city was in Y2K peril. The fire department and the city's reviled police force might be hamstrung because of communications and 911 failures, GAO said. Unemployment, tax, accounts payable, retirement, alarm, security, and a slew of other major computer-provided services were at risk, said the 2 October report, entitled ‘Year 2000 Computing Crisis: The District of Columbia Faces Tremendous Challenges in Ensuring Vital Services Are Not Disrupted.’

The federal government is fearing panic over the Y2K situation and is worried that even advising federal employees to begin personal Y2K preparations could fuel public alarm. Last May that the CIA told employees to prepare for Y2K by paying bills early and stockpiling cash. It also said that some other private firms have offered similar advice.

At a closed-door meeting of the White House's Y2K council in January, council members debated what agencies should tell their workers. John Koskinen, the council's chairman, warned the audience of about 30 officials that they should expect any advice offered internally will fall into the hands of the media…One member of the council, who spoke with Wired News on condition of anonymity, said it's too early to determine how significant -- or insignificant -- Y2K problems will be…By 1 October, the State Department plans to publish country-by-country advisories, which will recommend that travelers stay away from nations that have not adequately confronted Y2K. The advisories will include assessments of air safety and infrastructure reliability.”

National Guard units around the country are being trained to deal with phone-system outages and other chaos that could result from computer crashes when the year 2000 begins, The Associated Press reported. The decision to call out the Guard in each states rests with the governor.

In Washington state, half of the guard's ground troops will be on duty Dec. 31 and Jan. 1. Other states plan to have units on standby in case of blackouts, looting or other problems that might occur if computers shut down because they can't comprehend the date 2000.

Just in case, the adjutant general in Washington state rescheduled a drill so that 3,000 guardsmen would be on duty on New Year's Eve and Jan. 1.

In New Mexico, officials plan to keep all 28 state armories open on New Year's Eve, said Guard spokesman Tom Koch.

In Rhode Island, the Guard's adjutant general chairs regular meetings with state agency representatives to discuss contingency plans.

Wisconsin's Legislature has come under fire recently for a proposal to have the National Guard respond if there is a computer crisis.