NOTES ON THE BUDGET BUREAU ALLOWANCE, FISCAL YEAR 1955

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A000900230036-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: March 31, 2014
• Sequence Number: 36
• Publication Date: December 8, 1953
• Content Type: MF

Declassified in Part - Sanitized Copy Approved for Release 2014/03/31 : CIA-RDP78-04718A000900230036-0
U Y
MEMORANDUM FOR THE RECORD
8 December 1953
SUBJECT: Notes on the Budget Bureau Allowance, Fiscal Year 1955
The Bureau of the Budget reported on December 4 the 1955 budget
allowances made by the Director of the Bureau of the Budget. In general,
the Bureau allowed certain requests in the B Budget and disallowed cer-
tain items in the A Budget. The net effect was a balancing one which
left the over-all budget allowance tor 1955 at in the regu-
lar budget The Bureau of the Budget
carefully pointed out that although some items in the B Budget were
either disallowed or deferred, they did not mean that the requested
activities could not be undertaken. They still believed that the B
Budget items should retain their high priority and any requests that
the Agency has made should be applicable to the reserve funds in 1955.
In other words, they did not want to put the Agency in a position of
having the door closed on high priority items and yet keeping it open
for lower priority items.
The Budget Bureau also pointed out that the comments that will
follow were given to inform this Agency as to the basis for its deci-
sions. It was pointed out that the comments were not mandatory, but
should be used merely as a guide or reference by the Agency in any re-
programming undertaken in connection with fiscal year 1955 operations.
General The Bureau of the Budget feels that the rate of-,;rowth
in the DD/I area is still unsettled. They commented that their review
of operations and the testimony indicated that the operating offices in
the DD/I area had not yet been able to accurately determine the personnel
requirements for the workload involved.
A broad observation concerning the DD/A area was that in
spite of the leveling off of the CIA growth and program operations, the
offices in the DD/A area did not reflect any economies. In view of the
fact that all other government agencies are being forced to show econo-
mies in administration, it is not believed desirable to permit the DD/A
area to expand.
Comments on the B Budget
Items Allowed:
1. The B Budget included requests of positions ior
the DL1/: nr1 nn/A areAs. Of these requests the Bureau of the Budget
50X1 allowed
Declassified in Part - Sanitized Copy Approved for Release 2014/03/31 : CIA-RDP78-04718A000900230036-0
r -4n !ET
Declassified in Part - Sanitized Copy Approved for Release 2014/03/31 : CIA-RDP78-04718A000900230036-0
_2 _
Comments on the A Budget
Certain reductions were made in the A Budget which had the effect of
offsetting the allowances made in the B Budget. The following comments
were made covering the reductions:
2. The Bureau of the Budget felt that our estimated lapse
rate of 1% was not large enough. They believed that our overtime policy
was too lenient and that we were paying entirely too much money for this
service. Also, the past recruitment and turnover rates indicate that the
delay in filling jobs would be longer than the Agency estimated. However,
they did feel that there was some justification in the Agency approach
that the turnover rate would go dawn due to general retrenchment in govern-
ment employment. Because of the overtime and recruitment factor, the
Bureau of the Budget felt that the over-all lapse rate should be increased
to 2%, which would produce a savingss
lj
Declassified in Part - Sanitized Copy Approved for Release 2014/03/31 : CIA-RDP78-04718A000900230036-0
50X'
50X1
50X1
Declassified in in Part - Sanitized Copy Approved for Release 2014/03/31 : CIA-RDP78-04718A000900230036-0
-3-
3. The Bureau of the Budget felt that due to the leveling
off of employment the policy of recruiting people and maintaining them in
the pool should be tightened. They did not believe that the requirements
for this service would continue at the same level as in 1954, therefore,
the IAB request was reduced by
4. Three offices had indicated unusually large increases
in average salary: and NEA. Upon thorough analysis
it was determined tnat tne average salary used was in error. The Agency
pointed out that the o 'fices had been given fixed budget limitations to
cover the total program needs, and that any error in personal services
costs had to be made up from other object costs, and therefore when the
error was discovered the other objects should have been restored.
Although some validity was attached to this point, the Bureau of the
Budget felt that any error in presentation should be taken as a savings
under the present government-wide to government operating costs.
Therefore, the error amounting to was taken as a savings.
5. The supplemental administrative cost statement sub-
mitted in connection with thp A Badvet indicated that Agency-wide admin-
istrative costs increase( was
taken as a savings in 1955, in view of the fact that the general govern-
ment approach to administrative costs in 1955 is towards greater economy.
6. Based on one of the general observations made that the
DD/A area should show more ecorom the Bureau of the Budget felt that the
50X1 DD/A budget should be reduced by positions with a total cost of
They specifically pointed to the following areas that should be
lookedto:
a. More economy should be achieved in the Personnel Office as a
result of its reorganization and the reduction in the recruit-
ment program.
b. General Services should be able to show economies, especially in
the costs involving space services, as a result of the leveling
off of Agency requirements.
c. The Planning Staff in the Logistics Office should be reviewed
with the possibility of reducing its number, especially since
testimony at the hearings indicated that this might be the case
in the future.
d. The Medical Office administrative unit was believed to be too
large for the size of operations involved. The Bureau of the
50X1 Budget felt that positions could be removed from
this staff.
RET
Declassified in Part - Sanitized Copy Approved for Release 2014/03/31 : CIA-RDP78-04718A000900230036-0
50X1
50X1
50X1
50X1
50X1
50X1