632

455

632

586

828

$941 million in 1979 for the Congress, the General Accounting Office, the Congressional Budget Office, and other programs to carry out this mission.

Executive direction and management.—In response to the President's request, the Congress has granted the President special authority in the Reorganization Act of 1977 (Public Law 95–17) to reorganize the executive branch. Reorganization will result in more efficient and economical management. The President will send legislation and reorganization proposals to the Congress during both 1978 and 1979. Administrative reorganizations will also be carried out.

In 1979, the White House Office, Executive Office of the President, and related activities are expected to function at or near the reduced levels recommended by the President in Reorganization Plan No. 1 of 1977, which called for the consolidation of many Executive Office functions.

The aggregate personnel level for the White House and the Executive Office in 1979 is expected to be 1,468 full-time permanent positions compared to the 1,685 in 1978 before the White House and Executive Office reorganization. Outlays for the White House and Executive Office are estimated to be $80 million in 1978 and $80 million in 1979. This reflects a savings of $6 million in 1978 as a result of the reorganization.

Central fiscal operations.—The mission of central fiscal operations is to provide the essential financial activities necessary for the operation of the Federal Government. Most of the funds supporting this mission are spent on the collection of taxes by the Internal Revenue Service (IRS). The 1979 budget requests funds for additional staff to improve taxpayer service, to increase the matching of tax returns with wage and other documents, to collect overdue taxes more quickly, and to process and audit the increasing number of tax returns. IRS will also begin to modernize its computer system. Recently enacted legislation authorizes Treasury to earn interest on excess balances in its tax and loan accounts, into which IRS deposits tax receipts and from which Treasury pays the Government's bills. Treasury, in turn, compensates banks as agents for issuing and redeeming savings bonds and for handling tax and loan accounts, realizing net savings of $50 to $100 million annually. This cash management tool is consistent with the President's reorganization initiative to improve cash management throughout the executive branch. The 1979 budget proposes that all other financial programs be continued at approximately the present level.

General property and records management.-To carry out this mission, the General Services Administration (GSA) manages Federal property, acts as a central procurement agency, and acts as the custodian of the Federal Government's historical records.

Real property.-While GSA is the manager of the largest amount of general purpose office space used by the Federal Government, more than 10 times that amount of space is managed by other agencies for special purposes such as military bases, post offices, laboratories, and hospitals.

Personal property.—GSA also maintains, jointly with the Department of Defense and the civilian agencies, a national supply system under which supplies and equipment are procured and distributed to Federal agencies. In fulfilling part of its supply function, GSA operates an interagency motor pool program, which provides for the centralized leasing of motor vehicles to requesting agencies. Currently, the lease charges to customer agencies are based on the operating costs plus depreciation of the acquisition costs. Legislation will be proposed to allow GSA to modify its financing method by adjusting its lease charges to customer agencies for motor vehicles to reflect future vehicle replacement costs.

Outlays for GSA procurement are estimated to rise from $1.3 billion in 1978 to $1.5 billion in 1979. Other civilian agencies conduct specialized procurement, such as the National Aeronautics and Space Administration and the Department of Energy. The Department of Defense operates the largest Federal procurement program.

Major reviews of Federal administrative services and Federal data processing activities were begun in 1977 and will be completed in 1978. These reviews of the activities of GSA and other civilian agencies that provide administrative support services will focus on ways to increase the delivery of public services, to improve efficiency of Federal administrative services, and to reduce costs of such services.

Central personnel management.-In November 1977, the Federal personnel management project team completed a major study of the civil service system. Civil servants, top managers from Federal agencies, and outside experts participated in the study. In addition, views were obtained from a broad cross section of public and private interest groups. Specific proposals resulting from this study will be sent to the Congress.

In order to improve the process by which the President receives advice relating to needed Federal pay increases, Executive order No. 12004 was issued on July 20, 1977. The Executive order designated

the Secretary of Labor, the Director of the Office of Management and Budget, and the Chairman of the Civil Service Commission to serve jointly as the President's Pay Agent. The order also provided that the Advisory Committee on Federal Pay be represented at all meetings between the Pay Agent and the Federal Employees Pay Council.

Other general government.—Outlays to accomplish other general government missions, which include payments of claims and judgments against the Federal Government, various commissions, payments to the trust territories, and the Government Printing Office, are expected to total $632 million in 1978 and $586 million in 1979. This decrease is due to a reduction in the expected number of Indian claims.

Territories.—Outlays of $165 million in 1978 and $144 million in 1979 are estimated for governmental operations and construction programs in the Territory of American Samoa, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands; as well as new construction programs in the Territory of Guam. The unusually high outlays in 1978 result from one-time projects that will be completed in 1978. One of the major construction programs funded by the Federal Government is underway for the Trust Territory of the Pacific Islands and will provide a basic infrastructure upon which the Islands can begin to develop their own economy and to lessen their dependence on outside resources. The basic infrastructure consists of roads, docks, harbors, airports, water, sewer, and electrical systems. Recommended budget authority for the construction program increases from $34 million in 1978 to $51 million in 1979.

Panama Canal Zone.—The budget includes estimated outlays of $53 million in 1979 for the Canal Zone Government, which provides municipal services to residents of the Canal Zone. However, under the terms of the Panama Canal Treaty of 1977, the Republic of Panama will assume general territorial jurisdiction over the area of the Canal Zone. Within 3 years after the Treaty goes into effect, most activities carried out by the Canal Zone Government will be assumed by the Republic of Panama, or by other U.S. agencies operating in Panama.

Federal Election Commission.—Budget authority of $8 million is proposed to allow the Federal Election Commission to administer the Federal Election Campaign Act. If Congress enacts the administration's proposal to provide financial assistance to States offering election day voter registration and other outreach activities, an

additional $50 million of budget authority will be requested to be spent over a 2-year period.