LONG-RANGE BUDGET PROJECTIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00780R000400100059-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 14, 2016
• Document Release Date: March 28, 2003
• Sequence Number: 59
• Publication Date: April 1, 1964
• Content Type: MF

f, APR 1964
SUBJECT Long-range budget projections
1. Attached is a letter from the Director of the Bureau of the
Budget calling for long-range budget estimates for FY 1965-69. You
will note that agency reports are due by May 4. To help OBPAM com-
pile the necessary data and the information related thereto, a meeting
of the FPBC will take place on April 22 at 1600 in the DCI Conference
Room.
2. Immediately below is a table reproduced from a 28 February
1964 letter from BOB which provided planning estimates "intended to
form the basis for our discussions this spring on the 1966 budget. " No
manpower projections were included in the Bureau letter.
Program Projection
(millions of dollars 1
25X1
25X1
25X1
1965
Regular operations
Replenishment of Reserve
Total, new obligational
authority
1966
1967
1968
3. As you know, we recently concluded an "assumptions" exercise
to obtain, component thinking on future program trends. We have priced
out these assumptions, allowed for an annual 3% price increase factor, and
come out with totals as shown on the following table. (See Tab A)
4. The DCI has approved the general dollar levels which emerged
from the assumption exercise, and you will note that our internally developed
estimates are reasonably in accord with the Bureau's. On personnel ceilings,
however, Mr. McCone has indicated a wish to reduce employment to the
Approved For Release 2003/05/27 : CIA-RDP84-0078OR000400100059-5
SECRET r
level over the next several years. To achieve this objective, we have
recalculated the assumptions data, using a 1966 personnel level which is
the same as that for 1965.
gram requirement to
of the new mix.
This calculation reduced the Agency regular pro-
Approved For Release 2003/05/27 :
Obviously, this will require resolution
A-R L1 'M. 0780R000400100059-5
1 ith EYES
25X1
 4
Approved For Release 2003/05/27 : CIA-RDP84-00780R000400100059-5
it is requested that you be prepared to discuss the impact of
different program levels on the activite: of your Directorate at Wed-
!e day's FPBC meeting. In addition we will need to know those items
each Directorate would include in a 10% low priority list as indicated in
paragraph 1, page 2, of the BOB letter. Unless there have been major
changes in the interim, we would hope that the narratives submitted
with your "assumptions" calculations would stand as the basis for the
prograrn statements which must accompany the reply to BOB. (OBPAM
could then draft the reply with minimum need for further time-consuming
labor by the Directorates. )
25X1
Director of Budget,
Program Analysis and
Manpower
-2-
Approved For Release 2003/05/27 CIA +,4jtTOR00040
 Approved For Release 2003/05/27 : CIA-RDP84-0078OR000400100059-5
Approved For Release 2003/05/27 : CIA-RDP84-0078OR000400100059-5
 Approved EVff,eE206}3/Pf57 b9ACR
I:KCTUJ ED rtiUA. RV:
DOWNGRADING AND
14 APR I964 .
Honorable John A. MxCone
Director of Central Intelligence
Central Intelligence Agency
Washington, D. C. 20505
This letter outlines the nature of the information your Agency is
asked to nubmit as the basis for the annual spring review of Govern-
ment programs. In this year's review we expect to take full advan-
ts;e of the process. of program and financial planning developed over
the-past three years and to emphasize the consideration of longer-range
p-o cram issues. The information you submit should be aimed at those
objectives. We should like to have it in our hands no later than May 4,
1964
P3senktial?y, your submission should provide two kinds of information:
First, the program plan which you propose for your Agency for the next
several years and a financial plan of new obligational authority based
thereon. The new program plan and financial plan should be based upon
a fresh evaluation of program goals and objectives, thus going beyond a
simple updating of previously submitted plans. Information has been pro-
vided your staff as to the modifications in these earlier plans which
the 1965 budget allowance would require. Modifications likely to result
from actions of the Congress in this session must also be taken into ac-
count.
Special efforts should be made to incorporate into your submission pro-
posed reductions in and eliminations of marginal or obsolete activities
in accordance with the President's policy that by such action to can al-
low new and expanded programs to move ahead.
Second, information to give the President an adequate recognition of the
program priorities involved in his budget decisions and to assist him in
making the choices that may be necessary for the attainment of his fiscal
objectives. Your judgment is needed with respect both to the Central
Approved ForRelease 200 ~RDPa4-00780ROOD40010,0059-5.
 Approved For Release 200j-&77~%~+P-FL4-00780R000400100059-5
Intelligence Agency and the total U.S. foreign intelligence effort.
Accordingly, we are asking that you identify:
1. For your Agency as a whole, with some ranking of priorities,
a band of possible adjustments that could be made to your program and
financial plans. This band should cover at-least 10% of the controllable
new obligational authority in your financial plan for 1966. The identi-
fied adjustments should, of course, consist of activities lower in prior-
ity and urgency than those not so identified. Further, they should not
include any Government services which are clearly essential to the nation-
al security and the well-being of the Nation.
2. For the intelligence community, as defined by USIB membership,
the budgetary implications of the various special studies of broad in-
telligence program areas now being conducted under your sponsorship and
of any other community-wide program reviews you may have undertaken. With
respect to the Consolidated Cryptological Program and the National Recon-
naissance Program, I would welcome any comments on these areas you may
wish to make. I particularly solicit your views as to the magnitude of
the overall intelligence effort which you believe will be required between
now and fiscal year 1969 and any changes you anticipate in the basic "mix"
of collection techniques.
Since the spring program.revier will concentrate on major long-term objec-
tives and policy issues, figures are important in terms of general orders
of magnitude only. Such figures will provide an adequate basis for the
target amounts and other guidelines for the 1966 budget which we would
expect the President to establish after the program review has been com-
pleted. Therefore, it would be unproductive to expend great effort in
Attempting to refine figures or present them in minute detail. This re-
view is concerned with the 1966 budget only to provide guidance for its
preparation--not to determine its detail.
We expect that your plans will take into account the policies on improved
efficiency and tighter management which the President has enunciated on
several recent occasions. Vigorous efforts must be made to apply and
extend these policies.
For the purpose of preparing program statements and budget projections, w
suggest using the following assumptions: (1) that the current economic
recovery will continue without major interruption, but relatively full
employment (i.e., 4% unemployed) may not be reached.until early in the
calendar year 1966; (2) that domestic prices--on the average--will remain
generally at their present levels; (3) that present classified salary
scales will continue (necessary adjustments will be made by us centrally);
Approved For Release 2003FU5/~ 4-00780R000400100059-5
 :1 Approved For Release 2003/05/27 : CIA-RDP84-0078OR000400100059-5
3
and (4) that international tensions and our international objectives will
not change substantially. These are, of course, assumptions and not fore-
casts; they are simply intended to provide a uniform basis for the con-
sideration of programs and projections.
After we have reviewed and analyzed your program statements and budget
projections, we expect to discuss them with you before placing the com-
p lete budget outlook before the President.
Sincerely,
C O NF I D E N T I A L
Approved For Release 2003/05/27 : CIA-RDP84-0078.OR000400100059-5
 Approved For Release 2003/05/27 : CIA-RDP84-0078OR000400100059-5
Next 1 Page(s) In Document Exempt
Approved For Release 2003/05/27 : CIA-RDP84-0078OR000400100059-5