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August 15, 1974
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Approved For Release 2005/06/06 : CIA-RDIf UZI?! /.i Calendar No.1045 93D CONGRESS SENATE REPORT 29d Session No. 93-1091 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; SPACE, SCIENCE, VETERANS, AND CERTAIN OTHER INDEPENDENT AGENCIES APPROPRIATIONS BILL, 1975 Mr. PROXMIRE, from the Committee on Appropriations, submitted the following REPORT The Committee on Appropriations, to which was referred the bill (H.R. 15572) making appropriations for the Department of Housing and Urban Development ; for space, science, veterans, and certain other independent executive agencies, boards, commissions, corpora- tions, and offices for the fiscal year ending June 30, 1975, and for other purposes, reports the same to the Senate with various amendments and presents herewith information relative to the changes made. ,.MOUNT IN Nvw 13 UDGET (OBLIGATION AL) AUTHORITY Amount of bill as passed House___________________ $20,S46,332,000 Amended estimates not considered by House------- 618, 962, 000 Subtotal__________________________________ 21, 465, 294, 000 Amount of decrease by Senate____________________ 254, 575, 580 Amount of bill as reported to Senate-------- 21, 210, 718, 420 Amount of appropriations, 1974__________________ 20, 813, 036, 000 Amount of budget estimate______________________ 21, 436, 813, 000 Under the estimates for 1975_________________ 226, 094, 580 Over the appropriations for 1974_____________ 397, 682, 420 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 o ~. oy M O~ M O w-i [~ u'i O ~O ~D M C N d~ ~ M N i ~P N pippp o o o ,? ??D N ONO - h P _c. 00 '} N O f[+~ + M ~L --i T cD ~O w 8 m o S c5 b ~ ~5 m o cn co ~o ci io m N O O cv ci N 8 .Nr r~D 8 8 ~Gp O ~J N O~ O 00 O I?VELOp)rEx1' ANO ltl?sr AIu Ir 1974 appropriation----------------------------------------------- Pstirnate, 1975-_ (i, 320, 0011 ------------ ----------------- rlouse a11owance-.-----__ - - .-,, 000, (10) Committee recommendation- -- -- 6, 130, -100 'Comparable program amount. For Salaries r~rnd Expenses, Policy Developnre:rt and. Research, the Committee recommends alt appropriation of :0,130,400, which is $189,600 below the budget estimate and $1.130.400 over the House allowance. This is a new appropriation, combining the administrative expenses formerly financed through a limitation m the "Research and Tech- nology" appropriation with administrative expenses of policy devel- opment and program evaluation formerly financed under the appro- priation for "General I)epartrnental .Management.' Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 15 FAIR HOUSING AND EQUAL OPPORTUNITY 1974 appropriations---------------------------------------------- $9,777,000 Estimate, 1975-------------------------------------------------- 11,900,000 House allowance------------------------------------------------ 10,900,000 Committee recommendation-------------------------------------- 11, 543, 000 The Committee recommends an appropriation of $11,543,000 for the Department's Fair Housing and Equal Opportunity program. This amount is $357,000 below the budget estimate and $643,000 over the allowance contained in the House bill. Officials of the Department explained that the basic approach of HUD's equal opportunity program includes major emphasis on the enforcement of fair housing and equal opportunity laws and regula- tions. This is mandated by Title VIII of the Civil Rights Act of 1968, Title VI of the Civil, Rights Act of 1964, Executive Order 11063, 11478, 11625, and 11246, and Section 3 of the Housing and Urban De- velopment Act of 1968, as amended. The approach includes the encouragement of voluntary cooperation and assistance in aiding individuals, firms, agencies and organizations to comply with the provisions of the law and HUD regulations. HUD equal opportunity staff offers maximum assistance to both grant re- cipients and HUD program staff in Area and Insuring Offices to estab- lish institutional change that will enhance and encourage meaningful freedom of choice and equal opportunity for all Americans. Existing laws provide the Office of Fair Housing and Equal Oppor- tunity with the necessary tools to investigate and conciliate fair hous- ing and equal opportunity complaints, and to monitor and evaluate compliance with III71) guidelines through voluntary efforts or admin- istrative procedures. Underlying this policy is the philosophy that strict enforcement of laws, executive orders and regulations will aid in achieving the ultimate goal of equal opportunity for all Americans. 1974 appropriation----------------------------------------------- $6,161,000 Estimate, 1975--------------------------------------------------- 5,580,000 House allowance------------------------------------------------- 5,580,000 Committee recommendation-------------------------------------- 5,412,600 The Committee recommends an appropriation of $5,412,600 for Gen- eral Departmental Management. The Committee recommendation is $167,400 below the budget estimate and the amount contained in the House bill. This appropriation supports the functions performed in the Office of the Secretary and the Office of the Assistant Secretary for Legisla- tive Affairs. SALARIES AN n EXPENSES, OFFICE OF GENERAL COUNSEL 1974 appropriation -------------------- --------------------------- $3,253,000 Estimate, 1975 ----------------.------------- ------------ 3,530,000 House allowance ----------------------------------- ------ 3,530,000 Committee recommendation ------------------------------------- 3,424,100 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 The Committee recommends an appropriation of $3,424,100 for Salaries and Expenses of the Office of General Counsel. This sum is $105,900 below the budget estimate and the House allowance. The Office of General Counsel was established in 1966 as the law office of the Department of Housing and I?rba:.i Development. The General Counsel is the Chief Law O of the Department and, as such, is legal adviser to the Secretary and other principal staff of the Department. He is responsible for providing all legal advice. and serv- ices necessary at the Headquarters level with respect to the formula- tion, in rplementation and operation of the Department's programs and its internal administration. He also provides advice and counsel on Departmental policy with respect to those matters. The General Counsel is assisted by tlme Deputy General Counsel, and 1`our Associate General Counsels, each of whom is responsible for a portion of the legal work of the Department. 1.974 appropriation ------------------------------------------------- $6,708,000 Estimate. 1975---------------------------------------------------- 6,830,000 l36use allowance------------------------------------------------- 6,830,000 Committee recomm.endation--------------------------------------- 6,625,100 For Salaries and Expenses for the Office of Inspector General, the ('ornnuttee recommends arm appropriation of $(i,6??,i,100 which is $204,- 900 below the budget estimate and the House allowance. The Inspector General is the Department's focal point for inde- pendent review of integrity of operarions. The role of the Inspector General does not, however, lessen the responsibility of the Assistant Secretaries or heads of other major elements to carry out their func- tions effectively, efficiently and with integrity. The Inspector General is the central authority concerned with the quality, coverage, and co- ordination of the audit, investigation and security services of the De- partment. In directing these monitoring and review activities, the Inspector General emphasizes both the protective and constructive aspects of these services as a tool of management within a comprehen- sive Departmental effort, to attain improved management- effectiveness. The Office of Inspector General has authority to inquire into all pro- Trranr and administrative activities of the Departnent, and the related activities of all urarties performing under contracts, grants, or other agreements with the Iepartment. These inquiries may be in the na tore of audits, investigations, or such other reviews as may be appro- priate in the circumstances. 1974appropriation----------------------------------- X11, 650, 000 Estimate, 1975-------------------------------------------------- 19, 810, 000 House allowance ------------------------------------------- 19, 513, 000 Committee recommendation-------------------------------------- 18, 927, 610 For Adrninistratiorn and Staff ServWes. the Committee concurs with the House and reconnuends an appropriation of $18,927,610, which is $882.390 below the budget. estimate -mud $585,390 below the House lmrnolnrt. 'l'ire reduction by the Coil) rittee and the House was made in order to reduce the reimbursement- of space rental cost to the General Serv- Appeb~Ict c 8WI ih~15I 12101J9A016'/09t: CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 17 REGION-AL .'SEAN AGEME'NT AND SERVICES 1974 appropriation-----------------------------------.---------- $20,224,000 Estimate, 1975--.----- 30, 160, 000 Mouse allowance --------------------------------------- '29.446,000 28,562,620 For Regional Management and Services, the Committee recom- mends an appropriation of $28,562,620 which is $1,597,380 below the budget estimate and $883,380 under the House allowance. The decrease represents a 10 percent reduction in the amount charged by the GSA for spare rental costs: FEDERAL DISASTER ASSISTANCI: A1)~MMINISTRATUON FUNDS APPROPRIATED To TILE PRESIDENT 1974 appropriation--------------------------------------------- $432,600-,000 Amended estimate, 1975________________________________________ x 200, 000, 000 House allowance----------------------------------------------- 200,000,000 Committee recommendation -------------------------------------- 200, 000,000 i Original estimate $100,000,000. Increased to $200.000,000 in H. Doe. No. 93-311. For Federal Disaster relief, the Committee recommends an ap- propriation of $200,000,000, which is the same as the budget estimate and the House allowance. TITLE II SPACE, SCIENCE, VETERANS, AND CERTAIN OTHER INDEPENDENT AGENCIES AMERICAN BATTLE MONUMENTS COMMISSION SALARIES AND EXPENSES 1974 appropriation---------------------------------------------- $4,100,000 Estimate, 1975 --------------------------------------------------- -5,465,000 House allowance------------------------------------------------ 4,512,000 Committee recommendation______________________________________ 4,376,640 For Salaries and Expenses of the American Battle Monuments Commission, the Committee recommends an appropriation of $4,376,- 640, which $1,088,360 below the budget estimate and $135,360 under the amount allowed in the House bill. In addition to a 10 percent reduction of $3,000 in space rental costs to be reimbursed to the GSA, the, committee has disallowed the $950,- 000 requested for the proposed Pershing Memorial in the District of Columbia. The committee felt that, with inflation running rampant, this was no time to construct a memorial to our revered Ilero of World Tar I. The Commission is responsible for commemorating the achievements of the Armed Forces of the United States where they have served since April 6, 1917; controlling the erection Of monuments and mark- ers by U.S. citizens and organizations in foreign countries; and con- structing, administering and maintaining cemetery memorials on for- eign soil. Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 DEPARTMENT Or JDl`FENSE-(-'tV11, Cr,3rETERm1 EXrl\SI;S, AI iv `3ALARE11;11, AND GXYE'NSFS 1974 appropriation----------------------------------------------- $24, 078, 000 Estimate. 1975--------------------------- ------------ ---------- 267, 00 Noise allowance---------------- ---------------------- ---------- 265, WO Committee reconmmendation-------------------------------------- 257.050 For Cemeterial Expenses. Department of the Army, the Committee recommends that $257,050 be appropriated. This sum is $9,950 below the budget estimate and $7,950 less than the House allowance. Tlie reduction includes a 1-0 percent reduction in GSA space rental cost. licsponsibility for Arlington and Soldiers' Home National Ceme- teries is vested in the Secretary of the Arniy, who has delegated to the U.S. Army - icruorial Affairs Agency the responsibilities for staff and technical sn pervision of the clay-ta-day operations. The committee learned that Arlington and Soldiers' Home National Cemeteries contain the remains of 173,852 persons and comprise a total of 573.6 acres, and in FY 1975 there ware 2,720 interments. Each grave is marked with a headstone or grave marker, except in a relatively few instances, where the family may boa authorized to erect a monument of its own design at private expense. In addition, a head- stone or marker may be furnished for the ummiiar..ed grave of any de- ceased eligible serviceman interred in a private cemetery. Procurement of headstones and grave markers is the responsibility of the Veterans' Ad ministration. These cemeteries require a prograri of construction each year. The hinds requested for construction are expended to develop available land areas and thus provide and facilities required to accom- plish the interment of the remains of eligible persons. In addition, certain new construction and alterations are required of existing facil- ities to protect the Government's investment in these cemeteries. 1974 appropriation--------------------------------------------- $40,155,000 Estimate 1975--------------------------------------------------- 46,847,000 (louse allowance----------------------------------------- 46, 900, 000 Committee recommendation ------------------------------------- 46,900, 000 The Committee concurs with the Ihouse and recommends an appro- priation of $46.000,000 for Salaries and Expenses of the Federal Com- munications Connlnission, which is $53,000 over the budget estimate. For the past few years, the Committee has been deeply concerared abort the substantial backlog and the ability of the FCC to manage increasing ~vorlcloads in nearly all of its activities. Thus, the Comnnt- tee has included $300,000 for an ae_ditional 25 positions above the budget request and directs the Commission to allocate these positions on a permanent basis to reduce the substantial backlog. The Committee has also concurred with the House and reduced the budget estimate by $247,000, which represents a ]_0%n reduction in the space rental cost to be reimbursed to the GSA. Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 The Committee also joins with the House in urging the Commission to proceed as vigorously and as rapidly as possible-within Constitu- tional limitations-to determine what is its power in the area of pro- gram. violence and obscenity, particular as to their effect on children. Agreeing with the House, the Committee feels that this situation re- quires resolution and urges the Commission to submit the same report to it which was requested by the House by December 31, 1974. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 1974 appropriation------------------------------------------ $2,189,307,000 Estimate, 1975---------------------------------------------- 22,341,580,000 House allowance-------------------------------------------- 2, 327, 380, 000 Committee recommendation----------------------------------. 2, 326, 580, 000 I- Excludes $4,693,000 shown in report accompanying Special Energy Research and Development Appropriation bill for. 1975. 2 Excludes $4,435,000 appropriated in aforementioned bill. The Committee recommends an appropriation of $2,326,580,000 for funding NASA's Research and Development program. This amount is $15,000,000 under the budget estiinate and $800,000 under the allow- ance in the House bill. The Committee approved all budgeted items in this account, includ- ing $6,200,000 for the Large Space Telescope (LST) and $8,000,000 for SEASAT, funding for which had been denied by the House. The Committee reduction of $15,000,000 has not been directed to any specific program because the Committee feels that NASA is better able to apply this reduction with a minimum of disruption in its priorities. The I.ST, would provide a permanent astronomical observatory above the Earth's atmosphere, increasing ten-fold our ability to ob- serve the universe. These funds will support refined studies of the LST design and cost. On the basis of these studies, the Congress will be in a better position to consider the project when it is proposed as a new start. SEASAT, an experimental satellite for studying the oceans, offers he promise of great benefits to environmentally safe off-shore drilling, ocean-going shipping, and better understanding of the effects of the oceans on our weather. Data from the ERTS program is proving invaluable in numerous fields, including crop monitoring, land use, forestry, pollution control, and the search for new sources of energy. Despite, the obvious need for continuity of data in this new program. the Administration has not sought funds for starting the third ERTS satellite. In this connec- tion, the Committee concurs with the House and urges-NASA to repro- gram the necessary funds to begin work on ERTS "C" as soon as possible. The Committee notes with dismay the large and. continuing over- runs in the admittedly sophisticated Viking program. Further repro- ;rammings of funds for Viking will be considered only with the great- est reluctance. The Committee was informed that, NASA's program of research and development is directed toward advancing man's knowledge, of earth and its space environment and toward developing and utilizing aero- Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 20 nautics and space technology to accomplish National goals. The pro- gram is conducted through the following elements : Manned space flight: A program building on the success of the Apollo and Skylab missions to demonstrate an international coopera- tive space docking capability and to develop a new space transporta- tion system significantly improving the access of man and instruments to space. Space science : An unmanned space flight program to further man's knowledge of the earth, the atmosphere, the moon, the sun, the planets, interplanetary space, and the stars. Applications: A research and development program using ground, air, and space systems to demonstrate space techniques to benefit nlan- kind in such areas as weather and cli Irate, pollution monitoring, earth resources survey, earth and ocean physics, communications, and space processing. Aeronautics :Ind space technology: A program to acquire funda- ineiital knowledge and develop the technology needed to continue United States leadership in aeronautics and space programs. 'T'racking and data acquisition : A worldwide prograni to support the rurumed and unmanned programs of the agency. 'I'echrnology utilization : A program to accelertite the dissenrinatiorr to industry and other users of the technological avid engineering infor- mation gained during conduct of the agency missions. CON-STRUCTIO-N 07 FACILITIES 1974 appropriation____________________________________________ $101, 100,eon F]stimate, 1975--------------------------------- 151, 490, 000 II0118e allowance------------------------ ------------- 135, 670, 1'00 Committee recomnnendation-------------------------------------- 140, 135, 300 For Construction of Facilities, the Committee reconunends an air propriation of $140,155,300, which is $11,334,700 below the bud.rc estimate and $4,185,300 above the House allowance. The Committee intends that, this economy reduction be absorlw through the deferral of certain projects rather than the elimination e any specific project. The, Committee recommendation provides fmr(ls for all authorized construction projects including $4,880,000 for the Systems Develop merit Laboratory, which had been (ferried by the House, and $3,940,001) for the Shuttle I-Ianger, for which the budgeted ,trnolult of $1,940,013 for a temporary facility had been denied by the House. Tire Systems Development Laboratory addition at, the Jet Propel sion Laboratory, is for an addition to an exisr.,ing building whirl, would meet requirements for 3 additional floors to support "mission control" for the 1976 Mars Viking landing mission. The alternative 1. to lease off-site space for this requirement or relocate other functions off-site in leased space, either of which is costly and requires extensiv:z electrical mechanical, structural and control system rearrangement:; which could end,unger the mission. The other 3 floors in the addition would be used to reduce the opera. tional inefficiency and leasing costs ii volved in existing off-site space. The total savings from this project r:re estimated to recover the core struction costs in 51/2 years. The Orbiter Horizontal Flight Test Facilities (shuttle hanger), at the Flight Research Center, is required to s'tpport the space shuttle Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 sub-orbital flight test program over the Mojave desert. No existing hangars or other facilities are available for this purpose. The funding provided will allow construction of a permanent aeronautical research facility. This appropriation provides for contractual services for the design, major rehabilitation, and modification of facilities; the construction of new facilities; minor construction; the purchase of related equip- ment and advanced design related to facilities planned for future authorization. The program for 1975, in many aspects, reflects a continuation of prior years' endeavors, especially in regard to: (a) Space shuttle facilities (b) Facility rehabilitation and modification and minor con- struction programs (c) Facility planning and design. The purpose of this project is to rehabilitate, modify and add to existing government-owned facilities and to construct those limited new facilities necessary to meet unique requirements in support of the space shuttle program. In FY 1975, these facilities are primarily for the launch and landing requirements at John F. Kennedy Space Cen- ter. The work includes completing the construction of the landing facilities that were initiated with FY 1974 resources, the construction of an orbiter processing facility for maintenance and checkout of the orbiter and modifications to the Launch Complex 39 to support the launch of the space shuttle. FY 1975 requirements at other locations include modifications and additions to existing facilities to provide major ground test capability for dynamic testing of the shuttle vehi- cle, horizontal flight testing of the orbiter vehicle, crew training, vibro- acoustic testing and material testing. In addition, facility requirements to support the production and tests of the solid rocket motors during the design, development, test and evaluation phase of the program have also been included. The Rehabilitation and. Modification of Facilities program is in- tended to provide for the rehabilitation and modification of facilities at NASA field installations and Government-owned industrial plants engaged in NASA activities. Included in this project are those prior- ity rehabilitation and modification facility needs for FY 1975 which can be foreseen at the time of the submission of these estimates, and which are estimated to cost not in excess of $500,000: The purpose of this program is to protect, preserve, and enhance the capabilities and usefulness of existing NASA facilities, and to insure the. continued safe, economical, and efficient use of this physical plant. While, in earlier years, this particulat program was specifically directed toward the general nonprogrammatic segment of NASA facilities, this is the third year in which additional attention has been given to these types of facility requirements generated by specific programs or projects. Minor construction funds provide for minor facility construction at NASA field installations and at Government-owned industrial plants engaged in NASA activities. This provides for the construction of minor new facilities or additions to existing facilities, each project of which is estimated to cost not in excess of $250,000. Such minor con- Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 22 struction is necessary in FY 1975 to i::nprove the usefulness of NASA's physical plant by making it possible to accomplish needed adjustments in the utilization and augmentation of its capabilities. Funds for Facility planning and design are required to provide= for the following advance planning and design activities related to facilities activities and projects : (a) The accomplishment of necessary development and master planning for field installations and, where not otherwise provided for, the updating of "as-built" drawings and the provision of engineering services. (h) The preparation of preliminary engineering reports, co;-.t estimates. and design and construction schedules. (c) The preparation of final construction contract plans, specie fications, and associated cost estimates and schedules that axe required to implement construction projects. (d) The accomplishment of facilities siting and other in'es tigations, as well as special facilities studies and reports. 1974 appropriation ------ .--------------------------------------- $744,600,00) Estimate, 1975------------------------------------------------ 749,624.000 House allowance---------------------------------------------- 740,000,000 Committee recommendation ------------------------------------ -- 740, 000. 00(` For funds to support NASA's Research and Program Manageme;er the Committee recommends an appropriation of $740.000.000. which 14 $9.024,000 below the budget estimate and the same as the House allow ance. The reduction includes a $500,000, or a 10 percent cut in GS.~ rental space costs, as contained in the House 411. Personnel eats of 1,880 in FY 1974 and an additional 354 schednlee for FY 1975 have already been factored into the NASA budget esi1 mate. These reductions resulted in a NASA R&P11Ibudget . request only $5 million above FY 1974 in spite of a 838 million pay raise imposed by law. According to NASA, the Research and Program 11'Ianagemer appropriation includes funding for research in Government labora- tories, management of programs, and other activities of the agetrcv. Principally, it, is intended to provide for the civil service staff needed to perform in-]rouse research, and to plan, m u:_a(;e. and support the, Research and Development programs; 'and the other elements c::' operational capability of the laboratories 'and facilities such as logistics support (travel and transportation, maintenance, 'and operation of facilities), and technical rued administrative support. The in-house personnel funded by the Research and Program Man- agernent appropriation are engaged in research. and technology and direct and indirect support of project work. Over three-fourths of this appropriation is used to pay salaries and reh ted benefits of these employees. The balance, embracing travel, facilities services, technical services, and adnrinisltrative support at all NASA installations, pro- vides the test. and operational f-'tcilities and related activities which make possible the efficient accomplishment of NASA's approved missions. The Committee notes that NASA has made some progress in meet- ing its goal of full compliance with the Conunittee's support of mi- Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 23 nority hiring. The Committee reminds NASA, however, that it will tolerate no slippage or breakdown in this program. The Committee directs NASA to prepare an updated safety -study out of available funds of the, Soyuz/Salyut spacecraft in anticipa- tion of the ASTP and future joint missions. SALARIES AND EXPENSES 1974 appropriation-----------------------------------------------1$544,660,000 estimate, 1975------------------------------------------------- 2681, 400, 000 Rouse allowance----------------------------------------------- 666,800,000 Committee recommendations ------------- ----------- ----------- 654, 750, 000 1 Excludes $31,600,000 carried in report accompanying Special Energy Research and Development appropriation bill for 1975. Excludes $101,500,000 appropriated in aforementioned bill. For the appropriation to fund the Salaries and Expenses of the National Science Foundation, the Committee recommends $654,750,- 000, which is $26;650,000 below the budget estiiiiate and $12,050,000 under the House allowance. In arriving at this figure, the Committee included only $1 million each for the National R&-I) Incentive prograin and for the Intergoverii- mental Science and Research ITtilization program, which are, the same its the budget estimates. The Committee also found that the objectives of the Science Faculty Fellowship Program, for which there was no budget estimate, are. being met by other programs and consequently has provided no funds for this specific activity in FY 1975. .The Foundation requested $8 million for Earthquake Engineering Research in FY 75. While the Committee recognizes the importance of research in this field, it believes that. $8 million is. more money than can be justified within the tight: constraints of the RANN program, and directs the Foundation to reprogram some of these funds to other areas within RANN. This Committee is concerned with the increasing tendency of com- mittees other than Appropriation Committees to set floors on funding for specific programs, and urges the Congress to refrain from this practice, which the Committee believes is inconsistent with the spirit of the Budget Control Act of 1974. The Committee has also placed this appropriation on a no-year basis in order to give the Foundation greater flexibility, and avoid the neces- sity to rush into obligations at the end of the fiscal year. The suin recommended puts the $101,800,000 included in the Special Energy Bill for NSF activities makes a total of $756,550,000 available for NSF activities in fiscal 1975. The bill includes a limitation of $36,5 00,000 for Program Develop- ment and Management-a decrease of $800,000 below the 1975 request and an increase of $600,000 over the house-approved amount. This reduction includes $260,000 representing a ten percent decrease in (SA rental costs. Other limitations contained in the bill are not more than $50 million for Research Applied to National Needs; not more- than $3 million for Institutional Improvement for Science; not more than $12.7 million for Graduate Student Support; and not more than $61.4: million for Science Education Improvement. These limitations in the bill replace the floors or minima established in the Mouse bill, and the amounts, Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 2;t except for RANK. are decreased to the budget wnounts. The limita- tion on RANK is $:x,500,000 nuder the budget turd $10.000,000 over th(% aunoxmt provided in the House bill. The Committee directs the NSF to spend the $-3 million earmarked for Institutional Improvement for Science on the Institutional Grants for Science program with the funds to be provided only to those schools that receive less than $1 million a year in Federal research sup- port. The Committee has not provided funding for Institutional Grants for Research illanagement. Improvement. These funds have been provided in the past to institutions that receive considerable Fed- eral support for research ; these institutions should be able to improve their management of research grants using overhead funds. The Committee recommendaion includes $5 ]million for Science In- formation Activities, which is the budget estimate. The additional $3 million provided by the House is unnecessary in view of the fact that costly automation of major abstracting and indexing services had been conlt'ilet.ed so that an emphasis can now be placed on reducing gaps and duplication in information systems and the efficient exchange of infor- mation annong the systems. The Committee is distressed over !she increase requested for social science activities in view of the apparent: marginal value of some of NSF-funded social science work in the past. The Committee instructs the NSF to apply the budget reductions made by the Committee to the proposed increases in the social s?ience field before attempting to absorb them elsewhere. Tfre purposes of the National Science Foundation are to increase the Nation's base of scientific knowledge; encourage research in areas that can lead to improvements in economic growth, productivity, and environmental quality; promote international cooperation through science; and develop and help implement science education programs that can letter prepare the Nation for meeting the challenges of the decades ahead. NSF reported to the Committee tlat the following program areas maize up the core of their research support activities: Scientific Research Project Support (SRPS)-the core research -rapport activity of the Foundation. Ii; includes research in all fields of science--physical, environmental, biological, materials and social sc.i- races, and engineering. The research is conducted mainly through aca- demic institutions and nonprofit research institutions with a small but increasing participation by induatrial firms and other for-profit institutions. National and Special Research Prograrns-Includes major research programs that have as a chief characteristic one or more of the fol- lowing: they are heavily involved with research dealing with global environmental issues such as air-sea interaction, global weather, ocean circulation patterns: they require coordinated efforts on a national of international scale; or they address special science. problem areas. Fot example, the T.S. Antarctic Research Program, the Arctic Research Program. the Ocean Sediment Coring Program, and the International Decade of Ocean Exploration involve extensive international coordi- nation and cooperation in the planning and conduct of the research. as well as extensive interaction with ether TT.,-). Government agencies. NSF supports and sponsors five National Research Centers as part of their overall research support activity. Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 25 Science Information Activities.-Includes $5,000,000 for projects to develop and improve information systems and services to promote the dissemination of scientific information and to help scientists and engi- neers in all sectors of our economy use the results of worldwide scien- tific research. International Cooperative Scientific Activities.-To provide in- creased support for 17 bilateral research and exchange programs. Ex- panded programs of science cooperation are planned with various countries including the USSR, France, and others. In addition, there will be. growth in cooperative efforts with Japan and other Pacific nations. Through such agreements and programs, the U.S. and foreign scientists are provided opportunities to do research on scientific prob- lems whose solutions may be accelerated through collaborative efforts. The Foundation has lead agency responsibility for many of the areas approved under the U.S.-U.S.S.R. Agreement for Science and Technology. .. Increased funding for fiscal Year 1975 will be used to support a special program in international cooperation in the field ofenergy research and development. The Foundation will also, provide support to the National Academy of Sciences for operation of selected U.S. National Committees that are important for effective U.S. participa- tion in non-governmental international scientific activities. Included in this program is $1,000,000 for the annual U.S. share of support for the International Institute of Applied Systems Analysis. Research Applied to National Needs (RANN).-To support five major program areas: Energy Research and Technology ; Environ- mental Systems and Resources ; Advanced Technology Applications ; Social Systems and Human Resources; and Exploratory Research and Problem Assessment. The R ANN program is designed to focus U.S. scientific and techrri- eal resources on selected problems of national importance, with the objective of contributing to their practical solution. An important purpose of RANN is to shorten the lead time between the discoveries of science and their application in meeting the Nation's needs. RANN provides a key bridge between the Foundation's basis research and education programs and the development and operations programs of the Federal mission agencies and other elements of the user com- munity, including State and local governments and private industry. A major emphasis in all program areas of-RANN is research utiliza- tion, and special emphasis is being placed on efforts to move RANN results into the public and private sectors in FY 1975. The principal emphasis of the RANN program is placed currently in three major problem areas. These are Energy, the Environment, sad productivity. Applied research in each of these areas builds upon the results of exploratory research and problem assessments under- taken to determine the need for more intensive study and the applica- bility of science and technology in meeting national needs. Intergovernmental Science and Research Utilization Program.- Provides support for efforts designed (1) to aid State and local gov- ernments to increase their capability to employ science and technology effectively; and (2) to formulate policies, procedures and programs for the. dissemination and utilization of research results from the Foundation's Research Appiied to National Needs (R ANN) program. Approved For Release 2005/06/06 : CIA-RDP75B00380R000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 26 The program plays a significant role in understanding and analyzing the implications of New Federalism and science and technology policies. - Institutional Improvement for Science.-For continuation of the program of assisting universities, colleges, and -independent nonprofit research institutions to explore methods and techniques for improving their research management capabilities to enhance the effectiveness of Federal funds provided to them. Graduate Student Support.-Providing for 3 year fellowships de- signed to insure that a cadre of the brightest science students will have an opportunit to pursue science careers in disciplines of their choice. Science Education Improvement:-Provides support for programs that. aredesigned to increase educational efficiency, help provide the essential number and variety of trained scientists and engineers, and provide science training that will enable the non-scientist to function confidently both as a worker and as a citizen in our science and tech- nology-intensive society. The NSF programs for fiscal year 1975 aim directly at the. 'achievement of these goals. Planning and Policy Studies.-Provide the factual data and anal r- ical basis for sound decisions leading to the development of improve.i policies and plans for the advancement and utilization of science. The major elements of the program are: (1) studies of science resources; (2) science planning and policy analysis; and, (3) program evalua- tion studies. Program Development and Management.-Al operating costs of t`,( National Science Foundation, including the management of the var; ons program activities andthe executive direction and administrates, e management of the Foundation, are included in this activity. 5('1 NTiFIC A(?rlVITIES (SI'ECIAI. FOREIGN' (URREIx('y 1R(GRAM) 1974 appropriation------------------------------- --------- $3, 000, (;W Estimnate, 1975--------------------------------------------------- 5,000,000 House allowance------------------------------------------------ 5, 000, MR? Committee recommendation--------------------------------------- 4, 850, AKA 'I'lre Committee recommends an appropriation of $4,850,000 to fund NSF's Special Foreign Currency Program. 'I'bis amount is $150,t:)t) I under the budget estimate and the Ilouse allowance. The Committee learned that the Special Foreign Currency Progru ntilizes TT.S.-owned excess currencies in certain( foreign countries support. cooperative scientific projects, seminars, and the travel o: U.S. and foreign scientists involved in mutually beneficial efforts. The Foundation awards grants to both T.S. and foreign institutions and scientists. The funds used in this p:?ogram are from those which tL- United States has accumulated abror(d, principa-ly through the sale agricultural commodities, the repayment of loans, and the payment of interest on outstanding loans. The "excess" funds may be used for U.S purposes in the country of origin, with the concurrence of the con- cerned foreign government. The Department of the Treasury deter mines when, where, and how much of these funds are excess to the U.S. Government's requirement. There are eight special foreign cur- rency countries: Burma, Egypt, Guhica, India, Pakistan, Poland, Tu- nisia, and Yugoslavia. Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 27 Two categories of activity are included under this program : (1) cooperative research programs, joint seminars, and travel of scien- tists, and (2) translation, publication and dissemination of foreign scientific and technical information to U.S. scientists and engineers. The objectives of the program are to support cooperative scientific activities of significance to the U.S.A. and the cooperating foreign countries; supplement our domestic research effort through use of I?.S.-owned foreign currencies; obtain access to unusual. research en- vironments and facilities; arrange for the translation of foreign scien- tific and technological literature for distribution to U.S. scientists; and promote the exchange of information between U.S. and foreign scientists. 1974 appropriation---------------------------------------------- $4,805,000 Estimate, 1975-------------------------------------------------- 5,195,000 House allowance_________________ ------------------------------------------------ 5,163,000 Committee recommendation-------------------------------------- 5, 163, 000 For Salaries and Expenses of the Renegotiation Board, the Commit- tee recommends an appropriation of $5,163,000, which is $32,000 under the. budget estimate and the same as the House allowance. The Committee is deeply concerned over the continued lack of leadership by the Chairman of the Board and by the disappointing performance by the Board as a whole. The Chairman apparently fails to understand that Congress intends this agency to diligently review the financial submissions of all companies subject to the Act, to scrutinize the books and records of all those who may have taken excess profits on government contracts, and to make determinations of the full amount of excess profits where such determinations are justi- fied by the facts. The Board is seriously understaffed and ill-equipped to deal with its heavy responsibilities. There are only a handful. of professional auditors in the Washington office to screen the thousands of filings submitted each year. The legal staff numbers only 6. The total num- ber of personnel of the Board, professional and non-professional is less than 200, down from 239 in 1971 and far below the peak year of 1953 when the Board had a staff of 742 persons. The Committee finds that the Board is not able to effectively per- form the renegotiationfunction with such a small staff. The magnitude of the problem is illustrated by the amount of defense prime contract awards which totaled $36.9 billion in fiscal year 1973, and which has been consistently above $34 billion annually since 1966. It is not pos- sible for an agency with such a small staff to keep up with the, work- load indicated by the figures for defense contract awards and the large number of filings. The Committee is puzzled by the unwillingness of the Chairman to request additional manpower or to seek ways to improve the ef- fectiveness of the Board. The Committee is also puzzled by the reluctance, of the Board to adequately consider the return on capital or the return on net worth in making its determinations of excess profits. Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 28 The Committee is pleased to note that the Senate has directed that a study be conducted into the activities of the Board and the adequacy of the Renegotiation Act. The study, to be completed next year, will contain recommendations for further congressional action. The Renegotiation Board has authority under the Renegotiation Act of 1951, as amended, to determine aid eliminate excessive profits real- ized by contractors and subcontractors in the defense and space programs. Renegotiation is conducted not with respect to individual contracts, but with respect to the receipts or accruals of a contractor under all renegotiable contracts and subcontracts in a fiscal year of the contractor. Not all Government contracts are within the scope of the Act. T:_e Act relates only to prime contracts with the Departments of I)efen,=s-, the bony, the Navy, and the Air Fo -ce, the Maritime Administration, the Federal Maritime Commission, ihe General Services Administra- tion, the National Aeronautics and Space Administration, the Atom a' Energy Commission, and the Federal Aviation Administration; and to related subcontracts, including purchase orders. Moreover, certain types of contracts with these agencies; and certain types of subcontracts are exempt, in whole or in part, from renegotiation. The Act provides that a report must be filed with the Boardby every contractor or subcontractor having receipts or accruals in a fiscal year which exceed $1 million ($25,000 in the case of brokers, and manufac- turers' agents) from contracts or subcontracts subject to the Act. Con- tractors or subcontractors with renegotiable receipts or accruals amounting to loss than the above minimum need not file a report but may, if they choose, file a Statement, of Non-Applicability. Operations are conducted at the IIeadquarte.--s Office and two Re- gional Boards. The Eastern Regional Renegotiation Board serves the eastern part of the ITnited States and the Western Regional Renegoti- ation Board serves the western part. For a contractor whose renegotiable receipts or accruals in a fiscal year exceed the applicable minimum, the renegotiation process begins with the filing of a Standard Form of Contractor's Report. To compile the report, a contractor must segregate his negotiable from his non- renegotiable business and must also determine the costs and expenses allocable to each such segment. Generally, all amounts deductible for Federal income tax purposes are allowable as costs in renegotiation to the extent allocable to renegotiable business. 1.974 appropriation-------------------------------------- - $36,227,000 Estimate, 1975---------------------- -------------------------------------- ------------ 42, 131, 000 House allowance --------------------------------------------------- 43. 077, 000 Committee recommendation ------------- .---------------------- _- 43, 077. 000 The Committee recommends an appropriation of $43,077,000 for Salaries and 1,,xpenses of the Securities and Exchange Commission. This amount is $946,000 over the budget estimate and -the same as the House allowance. Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 I- Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 29 The Committee has also included language which increases the travel expense limitations of the Commission to $1,200,000 for FY 1975. The increased sum recommended by the Committee has been pro- vided to permit the commission to increase budgeted positions by 150. The Committee was informed that the SEC expects to collect and deposit in the Treasury, based on their current fee schedule, slightly over $24 million or about 61% of their budget request. In this con- nection, the Committee understands that theCommission has initiated a study of its fee schedule in relation to costs incurred. According to data received by the Committee, in FY 75 the SEC expects to collect fees for the following services in the amounts shown : Estimate, 1975 Registration of securities under the Securities Act of 1933--------- $14,000,000 Fees for other filings and reports-------------------------------- 5,375,000 From stock exchanges under section 31 of the Securities Exchange Act of 1934--------------------------------------------------- 4,400,000 Non-NASD:broke?rs and dealers--------------------------------- 400,000 Qualification of trust indentures--------------------------------- 1,000 Other fees ----------------------------------------------------- --------------------------------------------------- $24,186,000 SELECTIVE SERVICE SYSTEM SALARIES AND EXPENSES 1974 appropriation---------------------------------------------- $53,760,000 Estimate, 1975------------------------------------------------- 47,163,000 House allowance- --------------------------------------- 46,463,000 Committee recommendation------------------------------------- 37, 345, 000 For salaries and Expenses of the Selective Service System, the Committee recommends an appropriation of $37,345,000, which is $9,818,000 below the I .ouse allowance and $9,118,000 below the budget estimate. In light of very encouraging reports from both the Secretary of the Army and the Secretary of Defense concerning the success of the Volunteer Army, the Committee feels that an accelerated winding- down of the Selective Service System's operations is justified in fiscal year 75. Statistics show, among other things, that the average length of ini- tial terms has increased 21%, the average length of initial terms in Army Combat Arms is up by 45%, and that reenlistment by second term volunteers is up 70% in fiscal year 74. The morale and intelli- gence of the volunteer soldier is high and there are strong indications that our military forces are now both combat-ready and of sufficient strength to meet our military manpower needs. The Committee directs the Selective Service System to continue to explore vigorously alternative less costly methods of maintaining a stand-by draft system, with particular emphasis on the increased use of volunteer registration and processing personnel, and on a greater percentage of position reductions in the GS 13 and above categories. The committee was told that the Selective Service System must be prepared to furnish the men necessary to maintain the Armed Forces at authorized strength to the extent that this cannot be done by volun- Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700040004-1 tary means. This is accomplished by means of inductions, the magni- tude of which is determined by the Department of Defense. -Since January 1, 1970, the order of registrants to be selected for induction has been determined by lottery drawings which assign random se- quence numbers. Since March 1972, under the authority of the 1971 amendments to the Military Selective Service Act. random sequence numbers have been used in a T?niform National Call method. Section 10 (b) of the Act requires that the System maintain a readiness. notwithstanding the expiration of induction authority, to satisfy pos- sible emergency mobilization requirements by registering and classi- fying young men. The Committee also learned that the duties of thee Selective Service System include : 1. ,ti'ervice to registrants.-This activity includes registering, classifying, selecting, inducting when authorized, and providing service. to registrants including information. O,Ter 45,000 uncom- pcnsated citizens, including the itembers of local boards and advisors to registrants, help provide. service to registrants. 2. Kxam.intction serei.ces.-As the draft call varies, so do the costs of selectee travel topreinduction examination. Preinduc- tion travel costs are based on fulfillment of the requirements of section 4(a) of the Military Selective Service Act. ~~'r>~tr~~ ci~7, u.nr7 a irn,2nistratie.-Fiscal, personnel, and other administrative support is provided to carry out the program of i he System. 1. I a~ecuti~re dircrtion-.--This activity include; top policy-mak- ing? officials. heads of major divisions at National Headquarters, surd State Directors. i. Special programs.-For fiscal year 1975, this activity con- sists of the ,5ele~~~.trve Service Reserve. COTMPENSATION AND YF,NSTONS 1974 appropriation---_-__________________---------------------- $6, 743, 800, 000 Ainended estimate. 19Th-_______--____-- -- -- ----__---- 1 7, 283, 000, 000 Trouse Allowance-------------- --__ 6, 716, 200, 000 Committee recommentlation_________ - - -------___ 7, 283, 000, 000 Ori inar estimate oP $f,,719,200,000 increased by a:nended estimate contained in S. Doe. No. 93-96, $366,800,000. For Corn pensation 'and Pensions of our nation's veterans and their dependent-s,the Committee recommends pan 'appropriation of :, 7,`28.3.000,000 which is the name ~as the amended 'budget estimate and $566,800,000 above the. Houseallowance. The'amended estimate was not considered by the House. The Veterans' Administration informed the that there are two ni