For necessary expenses of the Civil Aeronautics Board, including employment of temporary guards on a contract or fee basis; not to exceed $1,000 for official reception and representation expenses; hire, operation, maintenance, and repair of aircraft; hire of passenger motor vehicles; and services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), at rates for individuals not to exceed $100 per diem; [$10,240,000] $10,800,000. (49 U.S.C. 1301-1325, 1371-1386, 1422, 1429, 1441-1510, 1531-1542; 15 U.S.C. 21; 71 Stat. 629; Independent Offices Appropriation Act, 1964.)

The Board regulates the economic aspects of air carrier operations, both domestic and international; investigates aircraft accidents; participates in the development of international air transportation; and participates in the development of safety rules and standards. The increase proposed for 1965 is primarily for work in the safety area. 1. Economic regulation. This includes granting certificates of public convenience and necessity, prescribing or approving rates and rate practices of air carriers, fixing mail rate compensation, prevention of unfair competition, and approval of business relationships between air carriers, and adjudication of complaints alleging violations of civil air regulations.

2. Safety activities.-These consist of investigating and determining the probable cause of civil aircraft accidents, investigating potential hazards, and recommending preventive measures to avoid accidents in the future.

3. Board adjudication, executive and legal staff activities. This includes the adjudicatory, program planning, and top policy and decision making functions of the Board; legal advice and assistance on all aspects of economic, regulatory, and safety activities; preparation of opinions; and the handling of litigation.

700-100-64- -51

Appropriation to liquidate contract authorization..

1 Adjustment of obligations of prior years.

The Board fixes rates for transportation of airmail to promote the development of air transportation required for the commerce of the United States, the postal service, and the national defense. Many of these rates include an element of subsidy. The subsidy portion is paid by the Civil Aeronautics Board, and the service portion is paid by the Post Office Department.

The following table reflects the estimated amounts becoming due finally for each year, together with the adjustments between years:

ESTIMATED SUBSIDY EARNINGS AND OBLIGATIONS RELATED TO APPROPRIATIONS

82,864 79,000 82,824

[In thousands of dollars]

Total number of permanent positions.. Full-time equivalent of other positions.. Average number of all employees..

884

886

872

1963 actual 1964 estimate

1965 estimate

Employees in permanent positions, end of Employees in other positions, end of year. Average GS grade..

67,800

67,000

10.0

10.0

10.1

Helicopter operations.

5,000

4,300

3,000

Average GS salary....

Alaskan operations |

Hawaiian operations

International operations..

0

0

The following analysis shows the subsidy outlook for 1965 under final Board actions:

CERTIFICATED CARRIER UNITS

Non

subsi- Subsidized dized

For necessary expenses, including services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a); not to exceed $10,000 for medical examinations performed for veterans by private physicians on a fee basis; payment in advance for library membership in societies whose publications are available to members only or to members at a price lower than to the general public; [not to exceed $90,000 for performing the duties imposed upon the Commission by the Act of July 19, 1940 (54 Stat. 767); reimbursement of the General Services Administration for security guard services for protection of confidential files:] and not to exceed $5,000 for actuarial services by contract, without regard to section 3709, Revised Statutes, as amended; [$21,805,000 $22,187,000: Provided, That no part of this appropriation shall be available for the Career Executive Board established by Executive Order 10758 of March 4, 1958, as amended.

No part of the appropriations herein made to the Civil Service Commission shall be available for the salaries and expenses of the Legal Examining Unit in the Examining and Personnel Utilization Division of the Commission, established pursuant to Executive Order 9358 of July 1, 1943. (5 U.S.C. 22-1, 73b-3, 150, 631-642, 645c-645e, 652, 659, 851-869, 901-958, 1010, 1051–1052, 1071-1133, 1151, 1162, 1171-1174, 2001-2007, 2061-2066, 2121-2123, 22512268, 2281-2288, 2301-2319; 28 U.S.C. 2671-2680; 39 U.S.C. 3311, 3312, 3315, 3502; 40 U.S.C. 42, 491; 50A U.S.C. 459; 65 Stat. 757; 66 Stat. 122; 68 Stat. 1115; 76 Stat. 858; 70 Stat. 721; Executive Orders 9830, Feb. 24, 1947, 10000, Sept. 16, 1948, 10242, May 8, 1951; 10422, Jan. 9, 1953; 10450, April 27, 1953; 10530, May 10, 1954; 10540, June 29, 1954; 10552, Aug. 10, 1954; 10556, Sept. 1, 1954; 10577, Nov. 22, 1954; 10590, Jan. 18, 1955; 10774, July 25, 1958; 10794, Dec. 10, 1958; 10800, Jan. 15, 1959; 10804, Feb. 12, 1959; 10826, June 25, 1959; 10835, Aug. 21, 1959; 10880, June 7, 1960; 10903, Jan. 9, 1961; 10925, Mar. 6, 1961; 10927, Mar. 18, 1961; 10973, Nov. 3, 1961; 10982, Dec. 25, 1961; 10987, Jan. 17, 1962; 10988, Jan. 17, 1962; 11073, Jan. 2, 1963; 11091, Feb. 26, 1963; 11103, Apr. 10, 1963; Independent Offices Appropriation Act, 1964.)

Program and Financing (in thousands of dollars)

Program by activities:

1. Economic regulation..

2

2. Safety activities..

3. Board adjudication, executive and legal

staff activities..

3

Unobligated balance lapsing----

8

1 Selected resources as of June 30 are as follows: Unpaid, undelivered orders, 1962, $365 thousand (1963 adjustments, -$40 thousand); 1963, $523 thousand; 1964, $162 thousand; 1965, $162 thousand.

1. Recruiting and examining.-Most appointments in the competitive civil service are made under the open competitive merit system through examinations held by the offices of the Commission and its boards of examiners, made up of agency personnel operating under the supervision of the Commission. Appointments through such competitive examinations will accord career or careerconditional status. Physically handicapped persons are given special placement attention. Veterans are aided in securing the benefits to which they are entitled.

5. Developing programs and standards.-The Commission develops programs, devises tests, issues standards and regulations, and proposes legislation to improve the Federal personnel system for both competitive and noncompetitive positions.

6. Appellate functions. These consist of hearing and taking action on appeals; administering the political activities statutes; and providing advice to agencies and individuals regarding rights of appeal.

7. Career development and training.-The Commission coordinates interagency training programs to achieve full utilization and to avoid duplication and, where it is more economical to do so, conducts training programs for agency personnel on a reimbursable basis. Also, it promotes and coordinates the incentive awards program authorized by Public Law 83-763.

Object Classification (in thousands of dollars)

2,378

12

2,600

2,600

5,259

5,500

21

5,500

22 Transportation of things...

Travel and transportation of persons.

1,308 1,314 1,321

462

548

450

135

7,637

8,100

8,100

23 Rent, communications, and utilities.

1,124

24

Printing and reproduction.........-

490

126

Services of other agencies.

177

26

Supplies and materials.

225

31

Equipment:

Furniture and other equipment.

1946 (5 U.S.C. 55a), [$600,000 $634,000: Provided, That this appropriation shall be available for advances or reimbursements to the applicable appropriations or funds of the Civil Service Commission and the Federal Bureau of Investigation for expenses incurred by such agencies under said Executive order: Provided further, That members of the International Organizations Employees Loyalty Board may be paid actual transportation expenses, and per diem in lieu of subsistence authorized by the Travel Expense Act of 1949, as amended, while traveling on official business away from their homes or regular places of business, including periods while en route to and from and at the place where their services are to be performed. (Independent Offices Appropriation Act, 1964.) Program and Financing (in thousands of dollars)

1 Selected resources of June 30 are as follows: Unpaid, undelivered orders, 1962, $85 thousand (1963 adjustments, -$3 thousand); 1963, $110 thousand; 1964, $110 thousand; 1965, $110 thousand.

Investigations. This appropriation is used primarily to pay the Civil Service Commission and Federal Bureau of Investigation for conducting investigations of U.S. citizens considered for employment in international organizations of which the U.S. Government is a member. The reports of these investigations are forwarded to the International Organizations Employees Loyalty Board of the Civil Service Commission which makes advisory determinations under the loyalty standard. The advisory determinations are transmitted, through the Secretary of State, to the Secretary General of the United Nations, or the executive heads of other international organizations. Object Classification (in thousands of dollars)

1963 1964 1965 actual estimate estimate

Annuities are paid to persons who were employed on the construction of the Panama Canal, or to their widows; and benefits are paid to widows of former employees of the Lighthouse Service.

For payment to the "Employees health benefits fund" of Government contributions with respect to annuitants, as authorized by section 7 of the Federal Employees Health Benefits Act [(73 Stat. 713)] (5 U.S.C. 3006), [$9,500,000] $10,664,000, to remain available until expended: Provided, That not to exceed [$1,125,000] $1,151,000 of the funds in the "Employees health benefits fund" shall be available for reimbursement to the Civil Service Commission for administrative expenses incurred by the Commission during the current fiscal year in the administration of the Federal Employees Health Benefits Act of 1959 [(73 Stat. 713)], as amended (5 U.S.C. 3001-3014), including services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a). (Independent Offices Appropriation Act, 1964.)