DEPARTMENT OF HOUSING AND URBAN DEPARTMENT; SPACE, SCIENCE, VETERANS, AND CERTAIN OTHER INDEPENDENT AGENCIES APPROPRIATION BILL, 1975

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000700040001-4
• Release Decision: RIFPUB
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• Document Page Count: 43
• Document Creation Date: December 16, 2016
• Document Release Date: May 19, 2005
• Sequence Number: 1
• Publication Date: June 21, 1974
• Content Type: REPORT

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93D CONGPXSS HOUSE OF REPRESENTATIVES REPORT
2d SessionNo. 93-1139
DEPARTMENT OF HOUSING AND URBAN DEVELOP
MEN'T; `SPACE, SCIENCE,. VE'TERAN$, ' AND -CERTAIN
OTHER INDEPENDENT AGENCIES APPROPRRIATIOI
BILL, 1975
.duNE 21, 1974:-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. B'OLA.ND, from the Committee on Appropriations,
submitted the following
REPORT
together with
SUPPLEMENTAL VIEWS
[To accompany ILR. 15572]
The Committee on Appropriations submits the following report in
explanation of the accompanying bill making appropriations for the
Department of Housing and Urban Development, National Aeronau-
tics and Space Administration, National Science Foundation, Veterans
Administration, and certain other independent executive agencies,
boards, commissions, corporations, and offices for the fiscal year ending
Juno 30,1975.
INDEX TO BILL AND REPORT Bill Report
page
page
Title I-Department of Housing and Urban Development-------
- .2
4
'Title -II-Space, Science, Veterans, and Certain Other Independ-
ent Agencies -----------------------------------------------
8
14
American Battle Monuments Commission------------------
8
14
Cemeterial expenses, Army-------------------------------
9
14
Federal Communications Commission----------------------
9
15
National Aeronautics and Space Administration------------
10
16
National Science Foundation------------------------------ -
14
18
Renegotiation Board -------------------------------------16
20
Securities and Exchange Commission----------------------
16
20
Selective Service System---------------------------------
18
20
Veterans Administration ---------------------------------
17
20
Title III-Corporations --------------------------------------
23
27
Federal Housing Administration--------------------------
24
27
Government National Mortgage Association----------------
24
28
Federal Home Loan Bank Board--------------------------
25
28
Title IV-General provisions----------------------------------
29
29
99-006
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The Committee recommends $20,846,332,000 in new budget (obliga-
tional) authority for the Department of Housing and Urban Develop-
ment and ten independent agencies. This is $41,519,000 below the
budget estimates considered, and $212,296,000 above the comparable
amounts appropriated for 1974.
The Committee has deferred action on an additional $2,105,000,000
requested for -a community development grant program pending final
congressional action on the Housing and Urban Development Act of
1974.
The following table summarizes the amounts recommended in the
bill in comparison with the appropriations for fiscal year 1974 and the
budget estimates for 1975.
Department or agency
Appropriations,
1974
Budget
estimates, 1975
Recommended Appropriations,
in bill 1974
Budget
estimates,
1975
(1)
American Battle Monuments
Commission_________________
$4,100,000
$5,465,000
V4 512, 000
+$412, 000
$953, 000
Cemeterial expenses. Army______
24, 078, 000
267, 000
265, 000
-23, 813, 000
-2, 000
Department of Housing and
Urban Development----------
3, 095, 724, 000
3, 236, 953, 000
3, 210, 422.000
+114,698,000
-26,531,000
Di saster Relief
432,600,000
200,000,000
200,000,000
-232.600,000 _
__________ --
Federal Communications Com-
mission ---------------------
40, 155, 000
46, 847, 000
46,900,000
+6, 745.000
+53,000
Federal Home Loan Bank Board I_
(28, 970, 000)
(32, 046, OCO)
(31, 908, 000)
(+2, 938, 000)
(-138,000)
National Aeronautics and Space
Administration_______________
3,035,007,000
3,242,694,000
3, 203, 050, 000
+168,043,000
-39,644,000
National Science Foundation-----
547, 660, 000
686, 400, 000
671, 800, 000
+124,140, 000
-14, 600, 000
5,163, 000
+358,000
-32,000
Securities and Exchange Com-
mission ----------------- .___
36,227,000
42, 131,000
43, 077, 000
+6,850,000
+946, 000
Selective Service System
53.760,000
47, 163,000
46, 463, 000
-7,297,000
-700,000
Veterans Administration--------- 13, 359, 920, 000
13, 374, 736, 000
13, 414, 683, 000
+54, 730, 000
+39, 944, 000
Included within the above total is $395,000,000' for the urban
renewal, model cities, and rehabilitation loan programs of the Depart-
inent of housing and Urban Development. These funds are intended
to cover a transitional period until January 1, 1975. If the community
development block grant legislation is enacted into law, the Commit-
tee will consider funding for the balance of the $2,500,000,000 re-
quested for this activity in 1975.
The bill generally incorporates a standard ten percent reduction
from the amounts requested by the Department and agencies for pe;y-
rnent of space rental charges levied by the General Services Ad-
ministration. These charges are imposed in accordance with the Public
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Buildings Amendments of 1972 (P.L. 92-313). The Committee has
explored this matter in considerable detail and has found indications
of excess charges levied by the GSA for expenses associated with pro-
viding space and services to Federal agencies. The ten percent reduc-
tion recommended should help bring the charges imposed more in
line with the cost of the services provided.
The Committee is recommending increases above. the budget. for the
Federal Communications . Commission and the Securities and h]x-
chalzge Commission as part of a continued effort to helpthese regula-
tort. agencies meet their expanding worko.ids.
Again this year, a modest increase is recommended for medical
careunder the Veterans Administration to hire additional nurses and
other direct patient care personnel. Although some improvement has
been noted in the staffing for direct patient care in VA hospitals, the
Committee continues to insist that a fully acceptable staffing level be
achieved and maintained.
The increasing practice, of some agencies to add positions during
the current year above the level originally requested is noted with
considerable concern. This action places the Congress in the difficult
position of either approving the annualization costs for the additional
positions in the budget year-or denying the funds and thereby pre-
cipitating a possible reduction-in-force. This, in effect, presents the
Congress with a fait accompli. The Committee expects this practice to
.stop and,in:tends to revie-v.carretally the use of administrative funds
in the coming months.
EFFECTS OF CommrjTI"ER ACTION ON PROJECTED B UDGET EXPENDITURES
(OUTLAYS) iN FISCAL YEAR 197 5
The budget outlays (expenditures) for the Department of Housing
and Urban Development and the other agencies covered in the bill
are estimated at $22,495,000,000 in 1975. Tree actions recommended by
the Committee are expected to decrease this total by some $30,000,000,
for a total of $22,465,000,000.
PERMANENT OBIJGATIONAL AUT.I1ORITY-FEDERAL FUNDS. AND
TRUST FUNDS
The new budget (obligational) authority recommended in the bill
for the Department and other agencies is only a partial listing of the
total financing of their activities in 1975. Substantial Sums are pro-
vided through "back-door" access to the Treasury by permanent legrsla,
tion for insurance, guaranty, and contract authority for certain veteran
and subsidized housing programs. Such authority is estimated to
aggregate $1,085,106,000 in Federal funds and $902,438,000 in trust
funds in the 1975 Budget.. Summary information and the detailed
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amounts of these permanent appropriations are reflected in appro-
priate tables appearing in the back of the report.
While not a part of the budget programs per se, the supporting role
of certain Government-spoiisored enterprises is assuming major rtn-
portance. A number of these "independent" activities contribute meas-
nrably to the success or failure of programs, and should be recognized
for their significance. Advance's of the Federal Home Loan Bank Sys-
tem are providing over $17 billion to thrift institutions for home
financing, and another $4 billion is available at a rate below the
System's current borrowing costs.
The Government National Mortgage Association only recently com-
mitted itself to purchase up to $9.9 billion of home mortgages through
secondary market operations, utilizing the services of the Federal
National Mortgage Association. A $3 billion commitment of the
Federal Home Loan Mortgage Corporation to purchase conventional
mortgages from savings institutions has been a critical element in
removing or alleviating some uncertainties of financing in the housing
industry. The policy involvement of the Government sponsored, but
technically independent institutions, is expected to expand in the
future. All of these activities, of course, are outside of the Budget.
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
The total appropriations recommended for housing and urban de-
velopment programs in -fiscal year 1975 is $3,210,422,000. This compares
with $3,095,724,000 appropriated for these activities in fiscal year '1974.
This does not include comparative totals in 1975 for an additional
$2,105,000,000 requested for a community development grant program
pending final legislative, action by the Congress.
Eighteen months ago a total moratorium was placed on all sub-
sidized housing production. This action, combined with accelerating
interest rates and unchecked inflation, has resulted in a serious hous-
ing recession. Housing starts are estimated to reach 1.6 million units
in 1974-down from 2.4 million in 1972. To help ease the shortage of
mortgage money, $10.3 billion dollars was recently made available
for increased authorization for the "tandem plans", for a new Federal
Ilome Loan Bank mortgage commitment program, and for advancing
below-market rate funds to thrift institutions. It is too early to
know if this action will revitalize the mortgage market, but
ultimately the cost of money will have to decline before the housing
industry can Sully implement our national housing goals.
The long suspension of low and moderate income housing production
is an additional drag on the housing industry. For the past two years,
the Committee has consistently urged that a workable program must
he found to provide our low-income citizens with safe and decent
housing. The Committee has also urged that whatever form such a
program takes, it must be at an acceptable cost level.
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In the 1973 report, as a result of a study developed by the surveys
and investigations staff, the Committee cautioned that the existing
subsidized housing programs were plagued with problems of misman-
agement and rising runout costs. It was suggested that a housing study
be undertaken to determine if the existing programs were workable
and cost-effective. However, the Committee never endorsed the total
suspension of these programs. It warned that until the results of the
study were known-a total suspension was both economically unwise
and needlessly harsh.
HUD completed an extensive nine-month housing study in
September of last year. It concluded that the existing subsidized
housing programs were too costly ; that they were not equitable because
they reached only six percent of the eligible population; and that
they were wasteful in that the programs concentrated on new con-
struction rather than making use of good existing housing. The study
further suggested that the most viable alternative to the existing pro-
grams was a direct cash assistance payment for low income families.
These conclusions resulted in the Department announcing a new subsi-
dized housing program known as the revised Section 23 leased housing
program. The suspension was maintained on the old subsidized pro-
grams, except that $60,000,000 of impounded rehabilitation loan funds
were released, and processing of applications for Section 236 projects
was resumed where bona fide commitments had previously been made.
The new subsidized housing program is an administratively created
program drawing on the basic authority provided in Section 23 of the
Housing and Urban Development Act of 1965. The Department's
new program provides annual contributions for housing assistance
payments on behalf of tenants in leased units, plus an allowance to
the Local Housing Authority for administration including tenant
certification. In short, the new proposal is an attempt to move as far
as is administratively possible in the direction of a direct cash assist-
ance program. This is clearly revealed in the President's message of
last September when he said he was lifting the suspension on Section
23 because it could "be administered in a way which carries out some
of the principles of direct cash assistance."
The Committee has serious reservations about the cost, the effective-
ness, and the ultimate success of the new revised leasing approach.
While these reservations are principally concerned with cost, it is in-
teresting to note that the program fails to satisfy the three main
objections raised by the housing study which prompted HUD to con-
tinue the suspension of the presently authorized programs.
First, it appears that the revised Section 23 leasing program will be
substantially more expensive than any of the existing programs. Data
provided by the Department indicates that the estimated 1975 direct
annual average Federal subsidy per dwelling unit is :
Rent Supplement-------------------------------------------------- $1,106
Homeownership Assistance (Sec. 235) ------------------------------ 767
Rental Housing Assistance (Sec.236)-------------------------------- 1,015
Conventional Low Rent Public Housing----------------------------- 791
Old Section 23 Leasing--------------------------------------------- 1,251
Section 23 Revised Leasing (existing units) -------------------- 1, 1,950
Section 23 Revised Leasing (new construction) ----------------------2,900
A further HUD comparison between the existing programs and the
Section 23 program, which attempts to incorporate all costs-including
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indirect subsidies such as administration and Federal and State taxes
foregone-still reveals that the revised leasing program is somewhat
more costly, or at a minimum, is no less costly than the existing pro-
grams.
Second, the revised leasing program will reach few, if any, addi-
tional low income families above the level covered under the existing
programs.
And finally, although the housing study stressed the need to make
maximum use of existing housing stock, the major emphasis of the
revised leasing program is on new construction.
The Committee is deeply troubled by these inconsistencies-par-
ticul.arly the issue of cost comparisons with the existing subsidized
programs. Many potential participants and housing authorities have
expressed strong doubts that the new revised leasing program is the
right formula. Complete reliance on a revised, new and untried Section
23 program of housing assistance may not serve the public interest
Well. The Committee is not closing the door on the Section 23 pro-
gram, despite its high cost, but intends to monitor closely this
important issue and may subsequently consider a limitation to insure
that annual Federal subsidies are not exorbitant?
COMMUNITY DEVELOPMENT IN AMERICA
List year the Department also terminated the categorical grant pro-
grams providing a wide variety of assistance to urban areas. HUD
proposed that these, programs be replaced by a Better Communi-
ties Act--a special revenue sharing proposal. Except for urban re-
newal. the Department requested no additional funds for these pro-
grams in. 1974. However, the Committee felt that a one year gap in
funding for community development would be disastrous for Amer-
ica's cities. Funds were provided for the orderly continuation of urban
renewal and model cities programs, and all of these monies are cur-
rently being committed.
A. proposed community development grant program is being
-reviewed and revised by the legislative committees. Pending action by
the Congress, the Committee has provided interim funding for the
urban renewal, model cities,and rehabilitation loan programs through
,January 1, 1975. The Committee has deferred funding of the com-
i munity development grant request until final legislative action is taken.
Contingent funding of the magnitude requested should not be provided
for any new program until the legislation becomes law and the full
dimensions of the pending legislation are known.
The Committee has doubts that a, new community development
grant program can be in place and operating by January 1, 1975. Many
others share this view. As a clearer picture of the status of the block
grant proposal develops over the coming months, additional transition
funding may be considered for the period of tune before a new program
can become effective.
HOUSING PRODUCTION AND MORTGAGE CREDIT
The current estimate of the unused contract authority available on
,Time 30, 1974, for the suspended programs is $452,323,000. Of this
amount $33,464,000 is available for the rent supplement program;
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$237,055,000 for homeownership assistance raider Section 235; $167,-
286,000 for rental housing assistance under Section 236; and $14,-
518,000 for the college housing program. In addition, the Department
is requesting more than $1,000,000,000 in new contract authority to
implement the Section '23 revised leasing program.
In addition to the contract authority for the suspended sub-
sidized housing programs, there remains approximately $105,000,000
under the Section 202 housing for the elderly program. The Com-
mittee has consistently urged that this program be resumed. The
Section 202 program has been free of the scandals and default
problems that have victimized the other subsidized and unsubsidized
programs. Importantly, it can also achieve results at the lowest total
cost to the government. The Committee is disappointed that its recom-
mendations have been disregarded and continues to urge that this pro-
gram be renewed.
Another field where IIUD has not fully met its obligations is in the
area of nursing home facilities. IIUD is the lead -government agency
for encouraging the building of nursing homes in the United States.
The Committee directs the Secretary to demonstrate this leadership
and to aggressively address the reali.tv.that forty percent of America's
disadvantaged are in need of nursing home facilities. Plans should be
developed for a much more active program designed to encourage the
building of nursing homes for the elderly before next year.
SALARIES AND EXPENSES, ROUSING PRODUCTION AND MORTGAGE CREDIT
PROGRAMS
1974 appropriation-----------------------------------------------
$5,246,000
Estimate, 1975--------------------------------------------------
14,340,000
Recommended in bill--------------------------------------------
14,340,000
The Committee recommends the budget estimate of $14,340,000 for
salaries rind expenses of these activities. The increase will provide 147
new positions to strengthen housing production staff capabilities.
These were requested to process an estimated 418,000 units of sub-
sidized housing under the Section 23 revised leasing program.
The Committee directs that none of these funds be used to admin-
ister the new Section 23 revised leasing program without the com-
panion administration and implementation of the full unused balance
of Section 236 contract authority currently available. This can expedite
necessary housing production for lower income families and produce
a basis for valid cost comparisons of the Section 23 and Section 236
programs. Such cost data should be made available to the Congress
on a current basis as it is developed.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
PAYMENT OF PARTICIPATION SALES INSUFFICIENCIES
1974 appropriation--------------------------------------------- $19,821,000
Dstimate, 1975------------------------------------------------ 22,883,000
Recommended in bill------------------------------------------- 22, 883, 000
The full budget request of $22,883,000 is recommended to; cover
insufficiencies that arise from the participation sales in home
mortgages authorized in 1968. They represent a Federal commitment
and a contractual obligation made when the sales were consummated.
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HOUSING MANAGEMENT
HOUSING PAYMENTS
1974 appropriation---------------------- -------------------- $2,020,000,000
Estimate, 1975 ----------------------------------- 2,425, 000, 000
Recommended in bill ----------------------- ------------------ 2,425,000, 000
The Committee recommends the budget request of $2,425,000,000
to make required interest subsidy, rent supplement and annual con-
tribution payments in 1975 for low income tenants and families under
contract authorities previously provided by the Congress. These pay-
ments have grown from $525,500,000 in 1970, to 8851,600,000 in 1971,
to $1,373,800,000 in 1972, to $1,800,000,000 in 1973' to an estimated
~2 020,000,000 in 1974, and $2,425,000,000 in 1975. Included within the
19ZT5 request is $430,000,000 for public housing operating subsidies.
A recent report by the surveys and investigations staff of the Com-
mittee relating to operating subsidies paid to local housing authorities
indicated that some housing authorities have included in their budgets
funds for payment to "tenant organizations". Regardless of the cir-
cumstances, the Committee never intended that operating subsidies be
used for this purpose, and it expects that the practice will not be con-
tinued with fiscal year 1975 funds.
SALARIES AND EXPENSES, HOUSING MANAGEMENT PROGRAMS
1974 appropriation--------------------------------------------- $24,521,000
Estimate, 1975------------------------------------------------- 23,400,000
Recommended in bill------------------------------------------- 23, 400, 000
The bill includes the budget request of $23,400,000 for administra-
tive expenses of housing management programs. The $1,121,000 de-
crease in this appropriation from 1974 is offset by a $5,735,000 increase
in FHA funds. This will provide 105 additional positions to meet the
estimated workload related to management of subsidized housing
programs.
COMMUNITY PLANNING AND DEVELOPMENT
URBAN RENEWAL PROGRAMS
1974 appropriation-------------------------------------------- $600, 000, 000
Estimate, 1975------------------------------------------------ 1200,000,000
Recommended in bill ------------------------------------------ 200,000,000
1 Requested in H. Doe. No. 93-351 as part of a community development grant program.
The Committee recommends the budget estimate of $200,000,000 in
transitional funding for urban renewal programs, which is included
within a total of $2,500,000,000 requested for community development
block grants. These funds are for the continuation of urban renewal
projects until replaced by the proposed community development grant
program on January 1, 197'5, or extended by other legislation.
Z' hen funds for community development grants are considered, the
amount provided will be deducted from the full $2,500,000,000 re-
quested for that purpose. Taken together with more than $600,000,000
in reservations expected to be issued in the last quarter of fiscal year
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1974, the amount available should meet immediate requirements for the
transitional period.
MODEL CITIES PROGRAMS
1974 appropriation---------------------------------------------
$150,000,000
1
Estimate, 1975------------------------------------------------
125, 000, 000
Recommended in bill------------------------------------------
125,000,000
1 Requested in H. Doe. No. 93-3111 as part of a community development grant program.
The budget estimates include $125,000,000 in transitional funding
for model cities programs. This amount is within the total of
$2;500,000,000 requested for the community development grants.
The Committee is recommending the budget estimate to provide in-
terim funding for the model cities program until January 1, 1975.
When funds for community development grants are subsequently con-
sidered, this amount willbe deducted from the $2,500,000,000 requested
for that purpose.
The Committee has also earmarked $1,000,000 for the rehabilitation
and redevelopment of DeKalb County, Tennessee. This model city
area was heavily damaged by the recent tornadoes which devastated
that part of the country.
REHABILITATION LOAN FUND
Section 312 of the Housing Act of 1964, as amended, authorizes 20
year loans at three percent interest to owners or tenants of properties
in urban renewal and code enforcement projects to bring properties
up to code standards. A direct loan can be made only when financing
cannot be obtained on comparable terms. While no new appropriation
for rehabilitation loans is requested in 1975, including loan repay-
ments, an estimated $97,000,000 was available for this program in the
current fiscal year. In September, 1973, the Department released
$60,000,000 of this amount, and following a recent court order, the
$37,000,000 balance has also been released for obligation.
The Committee recommends an appropriation of $70,000,000 to main-
tain an on-going capability in this activity, at least until some form of
new grant legislation is approved. This program is particularly effec-
tive in halting the rapid acceleration of urban decay, and the Depart-
ment is urged to make full use of the funds provided during a transi-
tional period. The amount provided will be deducted from the
$2,500,000,000 requested for community development whenever such
funding is considered.
COMPREHENSIVE PLANNING GRANTS
1974 appropriation--------------------------------------------- $75,000,000
Estimate, 1975 ------------------------------------------------- 110,000,000
Recommended in bill------------------------------------------- 100, 000, 000
Decrease below estimate---------------------------------------- -10,000,000
The Section 701 program, as it is commonly called, provides com-
prehensive planning assistance to States, local and metropolitan areas,
and other eligible recipients. The Committee recommends $100,000,000
for these grants, which is $25,000,000 above the amount provided in
1974 and a decrease of $10,000,000 below the budget estimate. The
TI. Rept. 1139, 93-2-74-2
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Committee intends that these funds will be obligated to provide for
an orderly continuity' of planning support in 1975 and 1976.
A report prepared by the surveys and investigations staff indicated
that more than $700,000,000 of planning funds may be. made available
from 24 Federal spigots in 1975. The funds provided in this bill, taken
together with funds made available from other sources, should be
sufficient to meet necessary planning of the States and other entities
assisted by these grants.
SALARIES AND EXPENSES, COMMUNITY PLANNING AND DEVELOPMENT
PROGRAMS
1974 appropriation ----------------------------- ---------------- $33,363,000
Estimate, 1975 -------------------------------------------------- 42,200,000
Recommended in bill___________________________________________ 39,000,000
Decrease below estimate ----------------------------------------- -3,200,000
The Committee recommends $39,000,000 for administrative expenses
of community planning and development programs, which is a reduc-
tion of $3,200,000 below the budget request. The Department asked
funding for 299 additional positions to administer the proposed new
community development grant program and other activities. There
should be substantial unused capability in current, staffing that could
be used more productively and the Committee feels all these positions
are not justified at this time.
FEDERAL INSURANCE ADMINISTRATION
FLOOD INSURANCE PROGRAM
1974 appropriation--------------------------------------------- $20,000.000
Estimate, 1975------------------------------------------------ 50,000,000
Recommended in bill------------------------------------------- 50, 000, 000
An appropriation of $50,000,000 is proposed for the flood insurance
program, which is an increase of $30,000,000 above the level provided
in 1974. This includes $46,050,000 for studies and surveys to determine
flood-prone areas as a basis for insurance and $3,950,000 for adminis-
trative expenses.
Flood insurance participation is expanding rapidly and the Depart-
ment now has a backlog of communities to convert from the emergency
to the regular insurance program. The increase will provide for studies
and surveys required before these communities are eligible for full
coverage under the regular program.
POLICY DEVELOPMENT AND RESEARCH
RESEARCH AND TECHNOLOGY
1974 .appropriation--------------------------------------------- $65,000,000
Estimate, 1.975-------------------------------------------------- 70,000,000 ecommended in bill-------------- ------- 60000 000
----------------------
Decrease below estimate---------------------------------------- 10,000,000
The bill contains an appropriation of $60,000,000 to continue ex-
tensive research efforts in housing and urban development and other
related activities. Excluding administrative expenses, which are pro-
vided in a separate appropriation in the budget in 1975, the amount
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recommended is substantially the same as the level provided in the,
current fiscal year.
Research initiatives sponsored by the Department have expanded.
dramatically from the 1968 level of $10,000,000. The Committee en-
dorses many of the Department's research efforts, but feels that areas.
of interest should be selected on a basis of highest priority. The funds.
recommended encompass major experiments involving housing allow-
ances, housing management, lead based paint poisioning, neighbor-
hood preservation, and development of basic data for integrated utility
systems.
SALARIES AND EXPENSES, POLICY DEVELOPMENT AND RESEARCH
1974 appropriation--------------------------------------------- 1$4,735,000
Estimate, 1975------------------------------------------------- 6,320,000
Recommended in bill-------------------------------------------- 5, 000, 000
Decrease below estimate---------------------------------------- -1,320,000
1 Comparable program amount.
The hill includes $5,000,000 for administrative expenses to carry out
policy development and research activities. This is a decrease of
$1,320,000 below the budget request, and $265,000 above the 1974 level.
The Committee notes that only 69 of the 1.80 positions are to main-
tain the present staffing capability in research and demonstration
activities. The policy development and economic forecasting staffs
have expanded by 29 positions in 1974. The Committee does not rec-
ommend any further expansion in 1975.
FAIR HOUSING AND EQUAL OPPORTUNITY
FAIR HOUSING AND EQUAL OPPORTUNITY
1974 appropriation---------------------------------------------- $9,777,000
Estimate, 1975------------------------------------------------- 11,900,000
Recommended in bill-------------------------------------------- 10, 900, 000
Decrease below estimate---------------------------------------- -1, 000, 000
The Committee recommends $10,900,000 for the administration of
fair housing and equal opportunity programs. This is a decrease of
$1,000,000 below the budget request, but an increase of $1,123,000 above
the amount provided in 1974. The budget proposes adding 50 tempo-
rary positions to relieve complaint backlogs and compliance reviews
required under various civil rights legislation. The amount recom-
mended should permit a balanced expansion of activity and cover the
additional positions and the annualization of 1973 increased pay costs.
DEPARTMENTAL MANAGEMENT
GENERAL DEPARTMENTAL MANAGEMENT
1974 appropriation ----------------------------------------------
$6,161,000
000
---------------------------------------
Estimate, 1975 ---------_._
5,580,
00
Recommended in bill---------------------------------------------
5,580,0
The bill provides the $5,580,000 requested by the Secretary for the
general staff offices reporting to him. On a comparable basis, after
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transfer of various functions are taken into account, the amount pro-
vided is approximately $1 000,000 above 1974. The increase will pro-
vide the annualized costs of higher average employment and full year
funding of the 1973 pay raise.
SALARIES AND EXPENSES, OFFICE OF GENERAL COUNSEL
1974 appropriation --------- --_-_--_- $3,258, 000
Estimate, 1975 --------------------------------------------------- 3,530,000
Recommended In bill----------------- --------------------------------------------- 8, no, 000
The budget estimate of $3,530,000 is recommended for the Office of
General Counsel. This amount is $277,000 above 1974 and will provide
three additional positions for a staff level of 210 in 1975.
SALARIES AND EXPENSES, OFFICE OF INSPECTOR GENERAL
'1974 appropriation---------------------------------------------- $6,708,000
Estimate, 1975-----------------------------___----------------- 6,830,000
Recommended in bill ------------------------------- ---------- 6,830,000
The Committee recommends $6,830,000 for the Office of Inspector
General, which is an increase of $122,000 above the 1974 level. The
additional funds are required for the full year costs of eighteen posi-
tions added in 1974 and for the annualization of 19"T3 pay adjustments.
ADMINISTRATION AND STAFF SERVICES
1974 appropriation------------------------------i--------------- $11
650
000
Estim
t
19
,
,
a
e,
75------------------------------------------------
19
810
000
R
--
,
,
ecommended in bill----_------_ ------------ ------ 19,5]3
000
Deerease b
l
,
e
ow estimate -------------------------- - --- -- -297, 000
The bill provides $19,513,000 in support of administration and
t
ff
s
a
services. The substantial increase of $7,863,000 above 1974 will
c
th
over
e annualized costs of positions added in the current fiscal year
th
f
ll
,
e
u
year costs of 1973 pay raises, and the first year charges for
space. rental under the new law requiring rent payment to GSA. In
d
i
accor
w
th the general ;policy recommended in this bill, the Committee
h
d
as ma
e a ten percent reduction in the amount to be paid to GSA
for such space costs.
WORKING CAPITAL FUND
The budget proposes the obligation of $14,065,000 for data proc
essing services for the Department in fiscal year 1975. This represents
an increase of $4,275,000, or almost 44%, over the planned level of
$9.790,000 for fiscal year 1974. The principal reasons for this signifi-
cant increase are the conversion of existing computer hardware to
a dual T7nivac 1108 system that will support teleprocessing between
field offices and the central office computer site, and a 7Q% increase in
workload processed via the GSA Infonet teleprocessing network.
Additionally, 22 positions have been requested to staff the enlarged
computer installation on -a three shift basis.
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The Committee takes note of several favorable developments over
the past year in HUD data processing and ADP management. Eleven
new systems have been installed, making more timely information
available to the Department, the Nation's housing industry and con-
smners. One new system, Automated Cost Evaluation, has shortened
the length of time necessary for validating cost estimates of multi-
fa,mily. housing projects from 21/2 days to less than one day. Several
new systems are planned for operational status during fiscal year 1975.
'The -Committee is also pleased to note that the results of the Depart-
ment's careful analysis of field teleprocessing and central office. data
processing service requirements are reflected in their budget justifi-
cation. The plan to obtain the dual Univac 1108 configuration will be
beneficial to the Government if it results in the projected savings of
several millions of dollars through the termination of the procurement
of these services from commercial sources. The Committee supports
HUD's efforts to develop more economical teleprocessing alternatives
and urges the Department to work closely with the Office of Manage-
ment and Budget and the General Services Administration toward
these objectives.
Finally, since much of the teleprocessing workload ordinarily per-
formed by the commercial contract vendor will now be performed by
the dual Univac 1108, and since several new systems originally
scheduled for operation in fiscal year 1974 have been delayed for
startup until well into fiscal year 1975, the $2,230,000 requested for
special contractual services may be excessive. More recent estimates
of this requirement approximate $1,700,000. The, Department should
monitor this situation closely so that any unexpended funds can be
returned to the Treasury.
1974 appropriation--------------------------------------------- $20,224,000
Estimate, 1975------------------------------------------------- 30,160,000
Recommended in bill-------------------------------------------- 29,446,000
Decrease below estimate---------------------------------------- -714, 000
The Committee recommends $29,446,000 for regional management
and services. This is an increase of $9,222,000 'above 1974 and a de-
crease of $714,000 below the budget request. The additional funds pro-
vided are principally due to GSA space rental costs. The decrease
represents a ten percent reduction in the amount charged by GSA for
this activity.
The Committee is concerned that the HUD regional office structure
is not an effective or efficient mechanism for administering the De-
partment's programs in the field. A maj or problem in this connection is
that the regional structure appears to intercept the normal chain of
command and responsibility of the assistant secretaries. The Commit-
tee heard testimony indicating that HUD is also concerned with the
regional structure, and urges the Department to examine carefully
the regional offices with a view for substantial reductions and reassign-
ments to area offices.
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FEDERAL DISASTER ASSISTANCE ADMINL3TRATION
FUNDS APPROPPIATED TO THE PRESIDENT
DISASTER RELIEF
1974 appropriation ---------------------------------------------
$432,600,000
Estimate, 1975------------------------------------------------
200,000,000
Recommended in bill-------------------------------------------
200,000,000
The full budget estimate. of $200,000,000 is recommended for the
disaster assistance program. Taken together with the $88,602,000 esti-
mated carryover at the end of the current fiscal year, and the $32,600,-
000 provided in the Second Supplemental Act of 1974, there will be
approximately $321,202,000 available in 1975 for disaster assistance.
This includes the initial implementation of the recently passed Disaster
Relief Act of 1974. The level of fund requirements for natural dis-
asters that may occur is impossible to predict, and additional funds
may be required for this activity.
SPACE, SCIENCE, VETERANS, AND CERTAIN OTHER
INDEPENDENT AGENCIES
AMERICAN BATTLE MONUMENTS Co &N:IssIoN
SALARIES AND EXPENSES
1974 appropriation----------------------------------------------- $4,1.00,000
Estimate, 1975-------------------------------------------------- 5,465,000
Recommended in bill -------------------------------------- _--__ 4,512,000
Decrease below estimate---------------------------------------- ._953,000
The Committee recommends $4,512,000 for the American Battle
Monuments Commission to continue the 1974 stalling level. The de-
crease of 5953,000 from the budget estimate represents a 10 percent
reduction in the requested payment to the General Services Adminis-
tration for space rental charges, and deferral of funds to initiate con-
struction of a proposed Pershing Memorial in the District of Columbia.
Such funds have been applied to other higher priority purposes
for veterans' care in this bill.
CEMETERIAL EXPENSES, ARMY
SALARIES AND EXPENSES
1974 appropriation--------------------------------------------- 1$24,078,000
Estimate, 1975------------------------------------------------ 267,000
Recommended in bill------------------------------------------ 265,000
Decrease below estimate ---------------------------------------- -2,000
1Includes $18,420,000 transferred to the Veterans Administration for the care of 82
national cemeteries pursuant to the National Cemeteries Act of 1973,
The bill provides $265,000 for the U.S. Army Memorial Affairs
Agency. The only decrease recommended is $2,000 reflecting 4 10 per-
cent reduction in the payment to the General Services Administration
for space rental charges.
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The National Cemeteries Act of 1973 provided for the transfer of the
National Cemetery System to the Veterans Administration, except
for Arlington National Cemetery and the cemetery at the Soldiers'
and Airmen's Home. These are still funded from this appropriation.
In addition to the funds recommended herein, a carryover balance of
$3,468,000 f rom 1974 is anticipated.
FEDERAL COMMUNICATIONS COMMISSION
SALARIES AND EXPENSES
1474 appropriation---------------------------------------------
$40,155,000
Estimate, 1475-------------------------------------------------
46,847,000
Recommended in bill--------------------------------------------
46,400,000
Increase above estimate-----------------------------------------
+53,000
The Committee recommends a total of $46,900,000 for the Federal
Communications Commission in 1975. Included in this amount is
$300,000 for an additional 25 positions above the budget request,
which should be allocated on a priority basis to reduce substantial
backlogs and to manage increasing workloads in nearly every activity.
Offsetting the increase for additional personnel is a decrease of
$247,000 representing a ten percent reduction in the amount charged
by GSA for space rental. Therefore, the net increase above the budget
request is $53,000.
In the past two years funds have been provided for an additional 265
positions to help reduce the growing backlogs in various activities.
While the Committee recognizes that it requires time to incorporate
this added manpower into the work stream, it is not fully satisfied
with the Commission's achievements in backlog reduction and will
expect more tangible progress in this area during fiscal year 1975.
Last year the 'Committee strongly urged the Commission to
proceed as vigorously as possible-within constitutional limita-
tions-to determine what its powers were in the area of program
violence and obscenity-particularly as they affect children. This is
the fifth consecutive year the Committee has included language in its
report expressing concern with the effects of violence and questionable
programming on children. It appears that the Commission has taken
little or no action in response to those expressions.
The Committee feels that this issue needs resolution. Therefore, the
Commission is directed to submit a report to the Committee by Decem-
her 31, 1974, outlining specific positive actions taken or planned by
the Commission to protect children from excessive programming of
violence and obscenity.
The Committee also expects that the report will summarize what-
ever resolution or division of responsibility may be reached regarding
the split of authority between the FCC and FTC concerning the
effect of commercials on children. The Committee is reluctant to take
punitive action to require the Commission to heed the view~`'of' the
Congress, and to carry out its responsibilities, but if this is what is
required to achieve the desired objectives, such action may be con-
sidered, The Committee hopes the Commission will move promptly
to resolve the administrative, jurisdictional, and constitutional prob-?
lens associated with this issue.
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NATIONAL AERONAUTICS AND SPACE ADMrNISTRATION
RESEARCH AND DEVELOPMENT
1974 appropriation ----------------------------------------- 1$2,189,307,000
Estimate,1975--------------------------------------------- 22,341,580,000
Recommended in bill--------------------------------------- 2, 327, 380, 000
Decrease below estimate------------------------------------ -14,200,000
1 Excludes $4,693,000, a comparable amount shown in the report accompanying the
Special Energy Research and Development Appropriation Bill for 1975.
2 Excludes $4,435,000 which was considered in the Special Energy Research and De-
velopment Appropriation Bill for 1975.
During the past year, the National Aeronautics and Space Admin-
istration marked the end of an era. The original manned space pro-
gram, which began with Project Mercury, ended with the highly
successful flight of Skylab. Except for the Apollo-Soyuz mission,
American men will not return to space until the first Space Shuttle
Mission in 1979. As the space program moves into the next era, NASA
is to be congratulated for the role it has played in contributing to the
technological leadership of the Nation.
The 1975 budget request proposes continuation of the Space
Shuttle; the American-Russian Apollo-Soyuz project; the Viking
program, which is scheduled to make a soft-landing on Mars in 1976;
various weather and scientific satellites; and further development of
a strong aeronautics research program.
The 1.975 budget also requested initial funding for three new space
flight projects-a Pioneer Venus mission proposed for 1978; SEAS AT,
a satellite designed to observe, measure and forecast ocean dynamics;
and a Heat Capacity Mapping Mission designed to locate targets for
the further exploration of mineral resources.
The Committee recommends an appropriation of $2,327,380,000 in
this bill. An additional $4,435,000 has also been provided in the Special
Energy Bill. The total recommended is $14,200,000 below the budget
request and is $41,000,000 below the authorization.
Within the total recommended, the Committee suggests a number
of changes from the amounts requested in the current budget plan.
1. The Committee recommends that the $6,200,000 requested for
planning funds for the Large Space Telescope be denied. The total
cost of this project is estimated at between $300,000,000 to $500,000,-
000. The Committee notes that the LST is not anions the top four
priority telescope projects selected by the Nationar Academy of
Sciences, and suggests that a less expensive and less ambitious project
be considered as a possible alternative.
2. The Committee recommends that the $8,000,000 requested to
initiate SEASAT be deferred. The Committee suggests that this satel-
lite be configured to fly on an early operational shuttle flight. This
will provide additional shuttle payload experience and could result in
cost savings-particularly if SEASAT is launched in combination
with another payload.
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3. The 1975 NASA authorization provided $16,000,000 to initiate a
third Earth Resources Technology Satellite. Because the ERTS pro-
gram has provided a wealth of valuable data, the Committee urges
NASA to reprogram the necessary funds to begin work on ERTS
"C" as soon as possible.
4. The conference report on the 1975 NASA authorization indicates
that $3,900,000 is to be applied to coal related research. No funds are
provided in this bill for that purpose. If NASA's expertise and facili-
ties can be utilized effectively for vital coal research, then the neces-
sary funds should be provided from the $400,000,000 available in the
Department of the Interior as part of a coordinated program in this
energy discipline.
5. The Committee directs that NASA not reprogram funds pro-
vided in this bill for further cost overruns on Project Viking, without
requesting such additional funds. The Committee notes that more than
$40,000,000 of 1974 funds have been reprogramed for this mission and
is concerned that large additional reprogramings in 1975 could restrict
other important NASA activities.
The bill contains the appropriation language requested that will per-
mit initial proposals for a tracking and-data relay satellite network
'to be considered. This language is authorized by Section 7 of the
National Aeronautics and Space Administration Authorization Act
'of 1975, and is available for oneyear.
Finally, the Committee hopes that the $45,000,000 invested in the
JTSD jet engine refan program will not be lost in a bureau-
cratic struggle over how much and what kind of commercial jet noise
abatement is appropriate. The Committee is aware that the Federal
Aviation Administration's proposed rule covering a sound absorption
system could negate much of the work NASA has completed on ref an
technology. Based on technological considerations, it has been esti-
mated that a refan retrofit of the DC-9 aircraft could begin in mid-
1976 and work on the 727 aircraft could begin in mid-1977. The
Committee hopes that no action will be taken that would effectively
eliminate the work of NASA in this field until all the facts and various
alternatives are carefully weighed and digested. NASA is urged to
make every effort to insure that the valuable refan work completed is
put to use as soon as possible.
CONSTRUCTION OF FACILITIES
1974 appropriation ----------------- ---------------------------
$101,100,000
000
Estimate, 1975------------------------------------------------
1.51, 490,
000
6
0
Recommended in bill ------------------------------------------
,
135,
7
000
820
15
rease below estimate---------------------------------------
D
,
,
-
ec
The Committee recommends $135,670,000 for the construction of
new facilities requested in the budget estimate. The funds approved
are the same, except in four instances.
H. Rept. 1139, 93-2--74-3
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The Committee recommends that the $4,880,000 requested for an
addition to the Systems Development, Laboratory at the Jet Propul-
sion Laboratory be denied. The new facility is proposed, in part, for
Project Viking. With substantial unused space available at other
NASA facilities, recent capabilities added at the Laboratory, and com-
pletion of earlier missions, construction of additional space for a
specific project does not appear warranted at this time.
The Committee recommends that the $1,940,000 requested for con-
struction of an Orbiter Horizontal Flight Test Facility at the Flight
Research Center be, denied. The Committee received testimony indicat-
ing that NASA had explored the possibility of making use of existing
hangar facilities. It is suggested that such efforts be continued. Funds
necessary for modification of existing facilities could be reprogramed
ieoln the total available in this appropriation. The shuttle orbiter
should be of sufficient high priority to command existing hangar space
at this location.
The Committee recommends a $5,000,000 reduction in the proposed
modifications to launch complex 39 at the Kennedy Space Center, and
a $4,000,000 reduction for construction of solid rocket motor test facil-
ities. These decreases are in line with similar redactions made in the
1975 authorization bill.
The effect of the decreases outlined above is a $15,820,000 net reduc-
tion below the budget. estimate. The amount provided is $34,570,000
'above the 1974 appropriation, largely reflecting the additionalrequire-
inents for modified or new Space Shuttle facilities.
RESEARCFT AND PROGRAM MANAGEMENT
1974 appropriation--------------------------------------------- $7`,600,000
Estimate, 1975------------------------------------------------ 749,624,000
Recommended in bill ------------------------------------------- 740, 000, 000
Decrease below estimate-------------------------------------- -9, 624, 000
The Committee recommends $740.000,000 for research and program
management, a reduction of $9,624.000 below the budget request. With
the continued contraction of NASA civil service employment and the
partial closing of selected facilities, the level recommended should be
sufficient to meet the management requirements of NASA- in the coming
Year. Included in the reduction is $500,000 representing a ten percent
decrease in the estimated payment to GSA for space rental.
NATIONAL SCIENCE FOUNDATION
SAT ARIES AND EXPENSES
1974.appropriation-------------------------------------------- '- 8544, 660, 000
Estimate, 1975------------------------------- z 681, 400, 000
Recommended in bill-------------------------- ---------------------------------- 666,800,000
Decrease below estimate-------------------------------------- -14, 600, 000
l Excludes $31,600,000, a comparable amount shown in the report accompanying the
'Special Ener8y Research and Development Appropriation Bill for 1975.
Excludes .$101,800,000 which was considered in the Special Energy Research and De-
velopment Appropriation Bill for 1975.
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19
The committee recommends an appropriation of $666,800,000 in this
bill in support of National Science Foundation programs. When taken
together with the $101,800,000 provided in the Special Energy Bill,
a total of $768,600,000 is made available for 1975. This is $14,600,000
below the amount requested and is $192,340,000 above the 1974
appropriation.
The bill includes a limitation of $35,900,000 for Program Develop-
ment and Management-a decrease of $1,400,000 below the 1975 re-
quest. The reduction is directly related to amounts proposed for the
1975 program and includes $260,000 representing a ten percent decrease
in GSA rental costs.
Other limitations and earmarkings carried in the bill are $5,000 for
official reception and representation expenses ; not more than $40,000,-
000 for Research Applied to National Needs; not less than $8,000,000
for Institutional Improvement for Science; not less than $13,200,000
for Graduate Student Support; and not less than $68,900,000 for
Science Education Improvement.
With regard to the individual programs recommended for 1975,
.the Committee has allowed an additional $3,000,000 above the budget
plan for Science Information Activities. This restores this activity to
the 197-E level of $8,000,000, and the Committee intends that this shall
be used to continue computerizing chemical and other information
systems.
The budget proposes deleting the proviso prohibiting grant pay-
ments to individuals refusing to obey lawful regulations of educational
institutions. The Committee recommends that this language be retained.
The budget also proposed adding language making the funds avail-
-able until expended. While the Committee has recommended "no-year"
funds in the Special Energy Bill to allow more latitude in the initial
stages of direct energy research, it believes that annual funding should
be retained to prevent the accumulation of unobligated balances which
,can complicate the authorization and appropriation processes.
The individual actions taken in the bill and report reflect many of
the concerns expressed by the Committee previously. These actions
are designed to insure that applied research is not pursued at the
expense of basic research, and that both applied and basic research
are not pursued at the expense of the Foundation's science education
responsibilities.
SCIENTIFIC ACTIVITIES (SPECIAL FOREIGN CURRENCY PROGRAM)
1974 appropriation---------------------------------------------- $3,000,000
Estimate, 1975-------------------------------------------------- 5,000,000
Recommended in bill-------------------------------------------- 5,000,000
The budget estimate of $5,000,000 in support of the special foreign
currency program is approved for 1975. This appropriation provides
for the collecting, translating, abstracting and disseminating of for-
eign scientific and technological information, utilizing foreign cur-
rencies which the Treasury Department determines to be excess to
normal requirements of the United States.
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20
RENEGOTIATION BOARD
SALARIES AND EXPENSES
1l74 appropriation-------
------------------------- ---------- ------- - $4,805,000
s mate, 1975 ---------------------------------------------------
-------------------
Recommended in bill ----- 5,195,000
____-__ ------- b 163,000
Decrease below esttimate----------------------------------------- -32 000
The $5,163,000 reco n vended for the Renegotiation Board will pro-
vide for a continuation of program activity at approximately the same
level as 1974. The decrease of $32,000 from the budget estimate is in
accord with the general provision in the bill reducing the General
Services Administration's space rental charge by 10 percent. The Com-
mittee is pleased to note recently reported saving. of over $70,000,000
through the renegotiation process for fiscal year 1974. This is the
Board's largest return to the Treasury in the last fifteen years.
SECURITIES AND ]EXCHANGE COMMISSION
SALARIES AND EXPENSES
1974 appropriation-_-----_ -------
-----------------------
$36,227,000
Estimate, 1975--------------------------------------------- ------`
---- 42,131,000
Recommended in bill -------------------------------------------- 43, 077,000
Increase above estimate ----------------------------------------- +946,000
The Committee recommends a total of $43,077,000 for the Securities
and Exchange Commission. This is an increase of $6,850,000 above
the current fiscal year and $946,000 above the budget request.
Last year the bill provided for an additional 263 positions over
the fiscal 1973 level. The budget proposes that another 75 be added in
1975 and the Committee recommends that this be increased by 150, for
a total of 225. This continues an accelerated effort to staff the Commis-
sion to enable the proper discharge of its growing responsibilities and
maintain investor confidence in the capital-securities market. The
ability of the Commission to meet its responsibilities effectively in the
face of complex developments continues to require attention.
SELECTIVE SERVICE SYSTEM
SALARIES AND EXPENSES
1974 appropriation ---------------------------------------------
$53,760,000
Estimate, 1975 -------------------------- -?--------------------- 47, 163, 000
Recommended in bill-------------------- Decrease below estimate----------------------- --_ ----------- 4' 700, 000
The bill includes $46,463,000 for reduced requirements of the
Selective Service System. This makes a significant further reduction
from the current year, reflecting the continued conversion of the
System to a standby mode. Personnel strength is being reduced from
6,241 on June 30, 1973, to 2,869 on June 30, 1975. The comparable
reduction from 1974 is $13,597,000 when the required payment for
space rental costs to GSA in 1975 is considered. The only reduction
from the budget request is in the payment to be made to GSA for
space rental charges.
VETERANS ADMINISTRATION
A total of $13,414,680,000 in new budget (obligational) authority is
recommended for the programs of the Veterans Administration. This
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is a net increase of $54,760,000 over the amount provided in the current
fiscal year to date. The total for veterans programs next year will
again be the largest amount in history.
The funds recommended will provide benefits and services to
29,100,000 veterans, the 65,800,000 members of their families, and
the 3,800,000 survivors of deceased veterans. These benefits include
compensation payments for 2,600,000 veterans and survivors of de-
ceased veterans for service-connected disabilities and death; pension
payments for 2,300,000 non-service-connected disabled , veterans,
widows and children in need of financial assistance; educational and'
training assistance to 2,000,000 veterans and 76,000 sons, daughters,.
wives, and widows of deceased or seriously disabled veterans; housing'
credit assistance in the form of 350,000 guaranteed and 2,600 direct
loans; supervision of a life insurance program covering 8,500,000 vet-
erans and active duty servicemen; inpatient care and treatment of
some 1,189,000 beneficiaries in the 170 hospitals, 18 domiciliaries,.
87 nursing homes and other facilities; outpatient medical treatment
involving nearly 15,000,000 visits ; and the operatin costs for the
National Cemetery System transferred to the Veterans Administration
on September 1, 1973.
COMPENSATION AND PENSIONS
1974 appropriation ___________ ------------------------------- $6, 643, 800, 000'
Estimate, 1975--------------------------------------------- 6,716,200,000
recommended in bill---------------------------------------- 0, 716, 200, 000,
The bill provides the full budget estimate of $6,716,200,000 for com-
pensation and pension payments. It is estimated that 2,197,120 vet-
erans will receive disability compensation in 1975. Another 1,029,560,
will receive pension payments. There are an estimated 1,684,926 survi-
vors of deceased veterans that are also receiving benefits in these.
programs.
The request does not take into consideration recently passed legisla-
tion increasing various allowances and compensation payments that
will increase the funding requirements for this account. Additional
funds will therefore be needed at a later date when the revised costs;
are determined.
READJUSTMENT BENEFITS
1974 appropriation------------------------------------------ $3,276,000,000
Estimate, 1975--------------------------------------------- 2,676,000,000
Recommended in bill---------------------------------------- 2, 676, 000, 000
The budget estimate of $2,676,000,000 is recommended for readjust-
ment benefits payments in 1975. 'This appropriation finances the educa-
tion, training, and rehabilitation of veterans and servicemen, and
educational assistance allowances for eligible dependents of veterans
who died from service-connected causes or have a total and permanent
rated service-connected disability, and servicemen who were captured
or missing in action.
It has been necessary in the current fiscal year to provide a supple-
mental of $750,000,000 for increased average costs per trainee, and for
expanded enrollments because of successes in encouraging veterans to
utilize the educational opportunities to which they are entitled. A
further supplemental of $77,000,000 is pending and will also be
required for the current fiscal year.
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Legislation is currently pending to further increase benefits, and
extend the delimiting date of eligibility for Viet-nam veterans. It is
therefore anticipated that additional funding will be required in fiscal
year 1975.
VETERANS INSURANCE AND INDEMNITIES
1974 appropriation-------------------------------------.------ ($6,000,000,
Estimate, 1975------------------------------------------- -- (6,000,000)
Recommended in bill------------------------------------------ 0
No appropriation is requested for insurance programs, although a
transfer of $6,000,000 from the Veterans Special Insurance Fund was
proposed in the original budget estimates. The enactment of Public
Law 9.3-289, effective May 24, 1974, makes policies under the Veteran'
special life insurance fund participating insurance and eligible for
dividends. The excess earnings are therefore no longer available for
insurance program adjustments. A revised budget estimate should be
submitted when the revised insurance fund requirements are known.
MEDICAL CARE
1974 appropriation ------------------------------------------- $2,859,173,000
Estimate, 1975-----------------
--------- ---------------------- 3, 175, 000, 000
iiocommonded in hill ----------------------------------------- 3, 190, 044, 000
Im reason above estimate------------------------__ _------ +15, 044, 000
The Committee recommends $3,190,044,000 for medical care. This is
$330,71,000 above the current fiscal year and $15,044,000 above the
hnd et estimate. The budget proposes an increase cf 8.184 in average
emplovnient in 1975, most of which are designated for direct patient
core. The increase is to provide for an additional 1,000 nursing or
clireet patient care positions, and reflects a 10 percent reduction in the
GSA space rental charge.
The Committee report accompanying the bill last year expressed
reservation and concern over the adequacy of the budget request for
medical funding, policies relating to hospital admissions, staffing
for direct patient care, emergency care capability, adequate space and
staffing to deal with increasing outpatient workloads, and other areas
of the medical program. Since the 1975 budget program was trans-
mitted to the Congress early in February, the President, in a special
nationwide address on March 31, 1974, has said "While there are con-
tinuing improvements in the quality of medical care in our veterans
hospitals, we must also continue our efforts to ensure that all patients
receive full treatment and that the most efficient use is made of their
excellent facilities. We should spend whatever money is necessary so
that the quality of care in these hospitals will be second to none."
To examine the quality of that care the newly appointed Chief
Medical Director of the Veterans Administration has been directed
by the President to conduct a thorough. investigation of the condition
of the VA hospitals and clinics, including a personal tour of some
of those facilities. About 30 hospitals have thus far been visited. A
report of the findings is expected by the Committee.
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From the Committee's own examination, it is clear that the addi-
tional personnel recommended at this time are a minimal requirement
for continuing to maintain quality care and for meeting acceptable
bed levels to meet the health care needs of the increased and aging
veteran population.
The Committee continues to stand ready to favorably entertain con-
sideration of future justified proposals submitted by the Administra-
tion to supplement medical care funding provided in this bill as such
needs may develop.
MEDICAL AND PROSTHETIC RESEARCH
1.974 appropriation--------------------------------------------- $75,500,000
Estimate, 1975------------------------------------------------- 89,000,000
Recommended in bill-------------------------------------------- 86, 770, 000
Decrease below estimate---------------------------------------- -2,230,000
The bill provides $86,770,000 for medical and prosthetic research.
This is an increase of $11,270,000 over 1974 and $2,230,000 less than
the budget estimate. The full request is included for the prosthetic re-
search program.
Last year the Congress provided the requested increase in average
employment of 89 for medical research. The Committee notes that the
Veterans Administration now plans to increase the average employ-
ment for medical research in 1974 by only 21. Because of other in-
creases provided for direct patient care and some slippage in 1974
requirements, the Committee has applied the aforementioned reduc-
tion to other priority areas.
ASSISTANCE FOR HEALTFI MANPOWER TRAINING INSTITUTIONS
1974 appropriation-------------------------------------------- $25,000,000
Estimate, 1975------------------------------------------------ 0
Recommended in bill------------------------------------------ 30,000,000
Increase above estimate-----------------------------------------30,000,000
The Committee recommends $30,000,000 above the budget for addi-
tional assistance for health manpower training institutions.
During the hearings the Committee was informed that the first
round of grant applications had been received and that the grant ap-
plication requests for the first 12 months totaled $71,500,000. The
$30,000,000 recommended in the bill, when added to the $45,000,000
already appropriated, brings total funding for this grant assistance
program to $75,000,000.
MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING EXPENSES
1974 appropriation---------------------------------------------
$34,063,000
Estimate, 1975-------------------------------------------------
37,508,000
Recommended in bill-------------------------------------------
37, 508, 000
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An appropriation of $37,508,000 is recommended for medical ad-
ministration and miscellaneous operating expenses. This provides an
increase of $1,822,000 for research and development in health services
and $2,130,000 for postgraduate and in-service training.
GENERAL OPERATING EXPENSES
1974 appropriation --------------------------------------------- $331,623,000
Estimate, 1975 --------------------------------------------- 391,000,000
Recommended in bill------------------------------------------ 388,130,000
Decrease below estimate--------------------------------------- -2,870,000
The Committee recommends $388,130,000 for the. general operating
expenses. This appropriation provides for the administration of non-
medical veterans benefits through the Department of Veterans Bene-
fits, operation and maintenance 'of the National Cemetery System,
data processing operations and communications systems through the
Department of Data Management, and top management direction and
support. This is an increase of $56,507,000 over 1974 and a decrease
below the budget estimate of $2,870,000.
The Veterans Administration has recently requested $2,500,000 to
implement a campus representative program in 1971 to assist in work-
ing out problems that have been experienced in delivering benefit
payments to veterans. The funds in the bill for this item may be used
to continue this new effort until a revised request can be considered
for 1975 to adequately provide for this requirement.
The largest single item of the 1975 increase is $28,700,000 for the
General Services Administration's space rental chare. Other in-
creases include $16,220,000 for the National Cemetery System, which
was transferred from the Department of the Army, and annualization
of pay costs. The decrease of $2,870,000 represents the 10 percent
decrease in GSA space rental charges.
CONSTRUCTION, MAJOR PROJECTS
1974 appropriation----------------------------------------------- $68,343,000
Estimate, 1975--------------------------------- - 230,850,000,
Recommended in -bill--------------------------------------------
-----.------- 2.30, 850, 000
The bill provides the budget estimate of $230,850,000 for major
construction projects costing $1,000,000 or more. This is the largest
construction request since shortly after the Second World War. Con-
struction projects already initiated or proposed for fiscal year 1975,
will require an estimated $233 million in the future to complete.
The Committee directs the Veterans Administration to reprogram
$5,173,900 of these funds for construction of a new research and
education building at the Houston VA hospital.
A listing of the projects and amounts approved and recommended
is as follows :
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25.
Available Recommended Future
through 1974 for 1975 requirement
'Replacement and modernization:
Augusta, Ga., replacement hospital------------------------------ $4,337,000,
Boise, Idaho, now clinical support facility________________________ 4,340,000
Bronx, N.Y., replacement hospital_______________________________ 9,046,000
Columbia, S.C., now bed building and modernization______________ 3,093,000
Little Rock, Ark., replacement hospital___________________________ 4,475,000
Loma Linda, Calif., replacement hospital_________________________ 6,500,000
Los Angeles, Calif., replacement hospital_________________________ 34,268,000
Madison, Wisc., modernization_____________________________________ _
----------
Northport, N.Y., replacement hospital____________________________ 20,046,000
Philadelphia/Southern New Jersey, new hospital__________________ 3,700,000
Phoenix, Ariz., modernization, phase II________________________________________
St. Albans, N.Y., modernization_______________________________________________
West Roxbury, Mass., spinal cord rehabilitation center and moderni-
zation-----------------------------------------------------
$2,730,000 $41,887,000
1,120,000 --------------
72,644,000 --------------
21,573,000 4,972,000
100, 000 65, 285, 000
46,510,000 ______________
39,376,000 ------------ _
1,134,000 10,206,000
6,000,000 --------------
100,000 47,768,000
600, 000 5,400,000
4,600,000 --------------
2,774,000 5,588,000
2,687,000 ______________
'Nursing home care facilities:
Manchester, N.H., 120 beds____________________________________ 2,336,000 1,271,000 --------------
Phoenix, Ariz., 120 beds_____________________________________________________ 220,000 2,930,000
Wilmington, Del., 60 beds______________________________________ 94,000 1,609,000 --------------
,Cemeteries:
Fort Snelling, Minn----------------------------------------------------------
Jefferson Barracks, Mo-----------------------------------------------------
National Memorial Cemetery of the Pacific (Hawaii)_____________________________
3 new national cemeteries____________________________________________________
Willamette, Oreg------------------------------------------------------------
improvements to outpatient clinics:
Albuquerque, N. Max------------------------------------------ 134,000
Cleveland, Ohio----------------------------------------------- 1,500,000
Kansas City, Mo------------------------------------------------------------
Palo Alto, Calif----------------------------------------------- 195,000
,Air-conditioning systems:
Augusta Ga.(Lenwood)------------------------------------------------------
Biloxi, Miss. (Gulfport)----------------------------------------- 81, 000
Fayetteville, Ark-------------------------------------------------
Huntington, W. Va--------------------------------------------- 1,520,000
Kerrville, Tex ------------------------------------------------- 260,000
Lebanon, Pa-------------------------------------------------
Lincoln, Neb----------------------------------------------------------------
Mountain Home, Tenn-------------------------------------------------------
Poplar Bluff, Mo---------------------------------------------- 147,000
Salem, Va_ ---------------------------------------------------------------
Salisbury, N.C--------------------------------- --------------- 5,985,000
'Other general projects:
Booklyn, N.Y., additional elevators______________________________ 96,000
East Orange, N.J., correction of electrical deficiencies____________________________
Gainesville, Fla., clinical improvements__________________________ 200,000
Huntington, W. Va., clinical improvements________________________ 85,000
Iowa City, Iowa, boiler plant____________________________________ 91,000
Now York, N.Y., correction of electrica Ideficiecies_______________________________
San Diego, Calif., clinical improvements________________________________________
Tuscaloosa, Ala., boiler plant_________________________________________________
Waco, Texas, boiler plant____________________________________________________
1, 000, 000 2,174, 000
1,400,000 85, 000
250, 000 2, 454, 000
750,000 3,990,000
640:000 1,343,000
1,868,000 ----- _________
1,287,000 --------------
560,000 5,041,000
2,952,000 --------------
260,000 3,463,000
919,000 --------------
284,000 2,554,000
172,000 --------------
2,107,000 --------------
625,000 5602, 000
40,000 2:158,000
65,000 1, 482, OOD
1,962,000 --------------
5,40,000 4,842,000
698,000 --------------
7,972,000 20,101,000
1,195,000 --------------
1,025,060 --------------
297,000 6,832,000
73,000 1,417,000
44,000 I, 219, 000
1,031,000 --------------
202,000 1,821,000
130, 000 1, 170, 000
126,000 1,131,000
Total other general projects__________________________________ 472,000 4,123,000 13,590,000
Correction of seismic deficiencies_________________________________________________ 3,000,000 ______________
:Reprograming for Houston research and educational building________________________ -5,173,900 --------------
Total, major projects________________________________________ 111,767,000 230,850,000 232,814,000
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26
1.974 appropriation--------------------------------------------- $40,018,000
Estimate, 1975------------------------------------------------- 45,150,000
Recommended in bill _------------------------------------------ 45, 150, 000
The budget estimate of $45,150,000 is recommended for minor con-
struction projects. Of the recommended amount, $32,676,200 is for con-
struction projects estimated to cost less than $1,000.,000 and $12,473,-
800 is for the general administration costs for the construction
programs.
1974 appropriation------------------------------------------------ $ 0
Estimate, 1975------------------------------------------------- 10,000,000
Recommended in bill------------------------------------------- 10,000,000
This prograin provides grants to assist the States in the construc-
tion of State nursing facilities, and to remodel, modify, or alter exist-
ing hospital and domiciliary facilities in State homes for providing
tare aril treatment to war veterans.
The bill provides the budget estimate of $10,000,000 for such grants
for construction, including $5,000,000 for State nursing homes and
$5,000,000 for the State home hospitals and domicili.aries.
1974 appropriation------------------------------------------------ $2,000,000
Estimate, 1975-------------------------------------------------- 2,100,000
Recommended in bill--------------------------------------------- 2,100,000
The Committee recommends $2,100.000 as requested for grants to
the Republic of the Philippines. Of that amount, $2,000,000 is
for medical. care and treatment and nursing home care of eligible
Philippine Commonwealth Army veterans and new Philippine Scouts.
In addition, $100,000 is provided for health service personnel training
and equipment and facility rehabilitation grants. The bill provides
that $50,000 for hospital, plant, and facilities rehabilitation grants
.should remain available until expended as proposed in the budget.
PAYMENT OF PARTICIPATION SALES INSUFFICIENCIES
1974 appropriation ------------------------------------------------ $4,400,000
Estimate, 1975 --------------------------------------------------- 1,828,000
Recommended in bill ----------------------------------------------- 1, 828, 000
The budget estimate of $1,828,000 is recommended for payment of
participation sales insufficiencies on pooled mortgages or other obliga-
tions guaranteed by the Veterans Administration. The funds are
available for transfers to the direct loan revolving fund and the loan
guaranty revolving fund to cover contractual commitments.
LOAN GUARANTY REVOLVING FUND (LIMITATION ON OBLIGATIONS)
1974 limitation ------------------------------------------------- $500,000,000
Estimate. 1975------------------------------------------------- 500,000,000
Recommended in bill------------------------------------------- 500, 000, 000
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The Committee recommends a limitation of $500,000,000 to finance
costs, other than administrative expenses, for the loan guaranty pro-
gram. The assistance normally provided consists of the guaranty of
insurance of loans made by private lenders to veterans. Under certain
conditions, the Veterans Administration may make loans directly to
veterans for home and farm residences.
TITLE III
CORPORATIONS
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
LIMITATION ON ADMINISTRATIVE AND NONADMINISTRATIVE EXPENSES,
FEDERAL HOUSING ADMINISTRATION
Administrative Nonadministrattve
11974 limitation---------------------------------
$15,445,000
$176,795,000
Estimate, 1975--------------------------------
13, 880, 000
191, 730, 000
Recommended in -bill ---------------------------
13, 803, 000
190, 500, 000
Decrease below estimate------------------------
-77,000
-1, 230, 000
The bill contains the budget estimate for both the administrative
and nonadministrative expense limitations of the Federal Housing
Administration, except for a ten percent adjustment in the reimburse-
ment to GSA for space rental charges in each item.
An average employment of 581 can be supported with the recom-
mended $13,803,000 for administrative expenses, including 495 in
housing production and housing management and necessary central
office overhead for the mortgage insurance programs.
The $190,500,000 recommended as a limitation. for nonadministra-
five expenses to be financed from corporate funds is for a field staff of
4,625, and also the 66 central office positions currently financed by this
limitation. This is an increase of $13,704,000 above the current amount,
and is related primarily to anticipated workload increases in insurance
of multifamily housing, and a further strengthening of housing
management.
LIMITATION ON ADMINISTRATIVE EXPENSES, GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION
1974 limitation--------------------------------------------------
$7,772,000
Estimate, 1975 --------------------------------------------------
8,080,000
Recommended in bill--------------------------------------------
8,080,000
The bill provides the budget request of $8,080,000 for the limitation
,on administrative expenses for the Government National Mortgage
Association. This is an increase of $308,000 over the current fiscal year.
The increase is considered necessary for the full year funding of pay
increases provided by law, and for higher tandem plan and mortgage-
backed security workload activity expected in 1975.
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FEDERAL HOME LOAN BANK BOARD
LIMITATION OF ADMINISTRATIVE AND NONADMINIS77RATIVE EXPENS1"S,
FEDERAL HOME LOAN BANK BOARD,
Non-
Administrative administrative
1974 limitation --------------------------------- - $9,700,000 $18, 530,000
Estimated, 1975------------------------------------ 10, 470, 000 20, 800, 000
Recommended in bill ------------------------------ 10, 400, 000 20, 736, 000
Decrease below estimate---------------------------- --70. 000 -64, 000
The Committee recommends limitations of $10,400,000 for adminis-
trative expenses and $20,736,000 for nonadministrative expenses of the
Board.
The recommended amounts are decreases of $70,000 and $64,000 be-
low the budget estimates, respectively, due to the 10 percent reduction
in the payment requested for the General Services Administration's
space rental charges.
The Committee has included the requested language to allow mem-
bers and alternates of the Federal Savings and Loan Advisory Council
Fier diem payments not to exceed the dollar amount set forth in 5
U.S.C. 5703(d) (1). This increases the maximum payment for per
diem from $25 to the more realistic amount of $40 as permitted by the
cited provision of law.
JJJ IITATION ON ADMINISTRATIVE EXPENSES, FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
1974 limitation ------------------------------------------------------ $740,000
Estimate, 1975---------------------------------------------------- 776,000
Recommended in bill ----------------------- ------------------------ 772,000
Decrease below estimate --------------------------------------------- -.4,000
The bill provides $772,000 as a limitation on administrative ex-
penses of the Federal Savings and Loan Insurance Corporation.
This decrease of $4,000 from the budget, estimate is in accord with the
general provision in the bill which reduces the General Service Ad-
ministration's space rental charge by 10 percent. The amount recom-
mended will continue funding the operations of administrative
expenses of the corporation at the 1974 level.
TITLE IV
GENERAL PROVISIONS
The Committee recommends that the general provisions applicable
to the Department and agencies carried in the current year be con-
tinued essentially the same in 1975, except for the addition of Section
405 relating to payments to be made to the General Services Adminis-
tration discussed earlier in the report.
Section 301 of the Supplemental Appropriation Act, 1974, requires
the Veterans Administration to have an independent audit for all
construction contract settlements in excess of $1,000,000. This is perma-
ment law and is therefore omitted from the bill.
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LIMITATIONS AND LEGISLATIVE PROVISIONS
The following limitations and legislative provisions not heretofore
carried in connection with any appropriation bill are recommended.
On page 4, in connection with Model cities programs :
of which $1,000,000 shall be available only for rehabilitation and
redevelopment of the DeKalb County, Tennessee, model cities area
devastated by recent tornado damage.
On pages 14 and 15, in connection with the National Science
Foundation :
not less than $8,000,000 shall be used only for Institutional Improve-
ment for Science
On page 16, in connection with the Securities and Exchange Com-
mission :
, and not to exceed $2,000 for official reception and representation
expenses
On page 27, in connection with the Federal Home Loan Bank Board :
Provided further, That members and alternates of the Federal Sav-
ings and Loan Advisory Council shall be entitled to reimbursement
from the Board as approved by the Board for transportation expenses
incurred in attendance at meetings of or concerned with the work of
such Council and may be paid in lieu of subsistence per diem not to
exceed the dollar amount set forth in 5 U.S.C. 5703(d) (1)
On page 30, in connection with General provisions :
SEC. 405. No part of any appropriation, funds, or other authority
contained in this Act shall be available for paying to the Adminis-
trator of the General Services Administration in excess of 90 per
centum of the standard level user charge established pursuant to
section 910(j) of the Federal Property and Administrative Services
Act of 1949, as amended, for space and services.
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SUPPLEMENTAL VIEWS OF IION. ROBERT O. TIERNAN
Tim, SELECTIVE SERVICE SYSTEM
In House Report 93-296, I expressed opposition to the continued
funding of the Selective Service System in Fiscal Year 1974. My
opposition to that funding remains today, reinforced by the successful
institution of the all volunteer Armed Services during the past year.
Although the all volunteer system has encountered some difficulties, it
is accomplishing its objective, and its success coupled with historical
precedence, the climate of detente, and the need for fiscal- responsi-
bility, should have signaled the end of the Selective Service System.
To continue the operation of a multi-million dollar stand-by draft
system, the need and statutory authority for which are questionable at
best, constitutes a senseless waste of American manpower and money.
It is senseless to maintain a $46.4 million stand-by draft system,
when there is no historical precedence for the necessity of having such
a system in order to meet the manpower needs of a national emergency.
In each instance when the United States has had to mobilize man-
power during times when there was no draft, we have done so quickly
and efficiently, regardless of whether or not a stand-by draftsystem
was in operation at the time.
In 1917, after enacting draft legislation in response to a declaration
of war, the United States inducted 475,000 men during a six month
period. Similarly, after enactment of the "Selective Serviceand Train-
ing Act" in 1940, 280,000 men were inducted during a six month
period. When draft legislation was passed on June 24, 1948, it took
only 131 days for the first man to be inducted. The fact that only 20,000
men were inducted in the first six months is largely, attributable to
the absence of any pressure for quick inductions. Like the two afore-
mentioned periods, this took place at a time when there was no stand-by
draft authority. The one time when the stand-by system was in opera-
tion, in June of 1950, 219,000 men were inducted in six months.
From the experience of the past it is clear that we do not need to
maintain a stand-by draft authority in order to meet national emer-
gency manpower requirements in the future. In addition, according
to experts there is little likelihood that the United States will become
involved in the type of conventional ground warfare which would
require the mobilization of more troops than are already available
within the Armed Services today. A former Member of the 'Flouse -
Armed Services Committee, Major General Leroy Anderson (U.S.'
Army, Pet.) provided a succinct explanation of this posi-tion?for the
III?I)-Space-Science-Veterans Subcommittee of the Appropriations
Committee :
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With the adoption of the Nixon Doctrine and the Congres-
sional decision to offer adequate wages to first term enlisted men,
the only condition under which this country is likely to need
draftees again would be if it became involved in a lengthy, large
scale, conventional ground war. Every indicator suggests the
probability of this happening to be extremely remote.
Even in the unlikely eventuality of a "large-scale, conventional
ground war," President Nixon presently has at his disposal over 5
million trained troops, (2.1 million active forces, 2 million Ready
Reserves, 532,000 Standby Reservists, and 710,000 Retired Reserv-
ists) a force which approaches that available to President Roosevelt
one year after World War IT began. There is more likelihood that
supplies and materials, rather than manpower, would be in short sup-
ply in national emergency of the magnitude that would require more
forces than are presently available.
Not only is the necessity for the continuation of the Selective Serv-
ice System a misconception, but the claim that the system is winding
down its operations to the minimum allowable level of personnel is
suspect. From an examination of the system's personnel estimates for
Fiscal Years 1974 and 1975 it is clear that the agency is leaving its top
managerial and supervisory positions intact while eliminating many
in the lower ranks. Of the 867 position reductions scheduled for FY
75, only .002 percent have a GS rating of 13 or above. In FY 74 the
Selective Service had 112 authorized positions above GS-12, compris-
ing 3.5 percent of the 3117 authorized positions. It plans to eliminate
only two of these positions in FY 75, and thereby increase the relative
strength of its managerial positions from 3.5 to 4.8 percent of its total
%vork force.
Similarly, the percentage of supervisory positions, GS-8 through
12, will increase from 9.1 percent of the work force in FY 74 to 11.2
percent in FY 75. Only 32 of the. 285 positions in this range authorized
in FY 74 will be eliminated in FY 75. Those reductions amount to 3.8
percent of the total anticipated reduction in FY 75.
Conversely, 80 percent of the FY 75 reductions will be made at the
GS-5 through 7 level, even though these positions comprised only
69 percent of the FY 74 authorized work force. Fully 700 of the 867
personnel reductions will be taken from this category and another 132
will come from the ungraded through GS-4 positions.
Obviously, the bulk of any large-scale personnel reduction must
come from those categories of positions which are the greatest numeri-
cally. However, an agency should not attempt to disguise a dispro-
portionate cutback, such as we have here, as an attempt to reduce an
agency to a skeleton operational force. Why is it necessary for a stand-
by draft agency to increase its managerial and supervisory strength
over that maintained while the draft was in effect? Why are nearly
the same number of people needed to supervise the work of 800 fewer
personnel who are performing fewer, less complicated tasks?
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In an effort to appease Congress, the Selective Service System is
ostensibly curtailing its structure by making large-scale personnel
reductions. In fact, it is increasing its managerial and supervisory
capacity and entrenching itself in the Federal bureaucracy.
During this time of severe economic hardships for many American
citizens, it is extremely irresponsible and unwise to spend $46.4 mil-
lion to support a, superfluous bureaucratic agency which performs no
useful function. For this reason and those stated above I can not sup-
port the continued funding of the Selective Service System.
ROBERT 0. TIERNAN.
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