SPACE PROGRAM OF THE 1960's

The space program of the sixties wisely gave this Nation--and the American space team-a bold and dramatic single-point challenge to land men on the moon to to return them safely within the decade. To accomplish this spectacular feat, NASA built a great new aerospace capability in this Nation and overseas. This impressive accomplishment equals the moon landing in significance and provides the strong base from which we move out today.

SPACE PROGRAM OF THE 1970'S

The space program of the seventies is quite different.

We are putting into motion with this budget a new program which does not move to a single climactic event. It allows us to move toward the objectives of option II of the space task group's report, but at a reduced pace. The budget for the difficult year of fiscal year 1971 is austere, but the new program has the flexibility to accommodate this. As you review the budget, you should look beyond its austerity to the broad and balanced program content, and its implications for man's future in space.

You will recognize that this is the lowest NASA budget since fiscal year 1962. It means substantial cutbacks and deferrals in a number of programs. Our best current estimate is that total nationwide employment on NASA-once 420,000-will decline from current levels by approximately 45,000 to about 144,000 people by the end of fiscal year 1971. The impact will be felt in many sections of the country. This is regrettable, but the administration has faced the hard fact that these steps must be taken to achieve a fiscally responsible, balanced budget in this time of inflation. Thus, the budget as it comes from the President to Congress includes a major reduction in the space program.

AUSTERE BUDGET ORIENTED TO FUTURE

At the same time, this budget, though austere, is strongly oriented to the future. The necessary reductions in the Nation's space program have not been made "across the board." We have made deliberate decisions:

To preserve and emphasize the ingredients of a strong future capability in space, centered on the development over a period of years of an economical, reusable space transportation system, including the space shuttle, the space station, and the reusable nuclear rocket: To continue strong efforts on the practical applications of space technology for early practical benefits liere on earth;

To continue lunar exploration with the remaining Apollo lunar missions and the Apollo applications earth orbital workshop flights with hardware previously under procurement in such a way as to derive the maximum scientific and technical values;

To continue, but with stretchouts and deferrals, a balanced program of planetary exploration and scientific investigations in space,

focused on the areas where the most exciting discoveries are most likely;

To continue increasing emphasis on aeronautics;

To maintain the essential cadre of NASA's technical, operational, and management capabilities on which the continuing and future position of the United States in space and aeronautics depends.

SUMMARY OF FISCAL YEAR 1970 OPERATING BUDGET

I would like now to summarize the fiscal year 1970 operating budget and then to review the fiscal year 1971 budget request for NASA.

Our fiscal year 1970 operating budget is summarized in the attachment to my statement. (See page 6.) The changes we have made from our earlier estimates are generally the result of four factors:

1. We have brought our program within the total amount appropriated, $3,697 million, $19 million less than the authorization and our amended fiscal year 1970 budget request.

2. We have updated our estimates in the light of developments occurring in the period of almost a year since we prepared the estimates reflected in our amended fiscal year 1970 budget request. I am sure this committee understands that in an active and rapidly changing research and development program there is a continuing need to revise estimates as experimental results are obtained, design studies are completed, and negotiations and awards of contracts proceed. For example, revised estimates in the Mariner 1971 Mars and the Pioneer projects have made necessary a $12 million net increase in the planetary program.

3. We have reassessed, in the light of all the circumstances facing us, the funding levels required in "Research and program management," to provide the minimum support necessary to carry out our approved research and development programs. The adjustment for proper balance between programs and program support has required a shifting of $9.2 million from "Research and development" to "Research and program management." Of this amount $3.35 million is for mandatory items not covered in our amended budget, such added cost of new legislation covering per diem and retirement benefits. In addition, our plan anticipates the availability of $41.8 million for the research and program management account from the general supplemental appropriation, to cover the civil service salary increases already effective in fiscal year 1970 pursuant to law.

4. In a number of areas we have revised the details of our fiscal year 1970 program and funding to conform with the program changes resulting from decisions on the austere fiscal year 1971 NASA budget and to concentrate our efforts more sharply in support of the longterm objectives of the space program that the President is recommending the Nation pursue in the seventies. For example, within the total for "Space flight operations" we have increased the amount to be allocated to definition and design of the space shuttle and space station from $9 million to $18.5 million. Also we are making a number of changes in the details of our advanced research and technology programs to concentrate our efforts more sharply on critical problems-chiefly in aerothermodynamics and structures-related to the

space shuttle definition and design effort. The net effect is an increase of about $3.1 million in the space vehicle systems line item, with offsetting decreases in other areas.

SUMMARY OF FISCAL YEAR 1971 BUDGET

Let me turn now to our fiscal year 1971 budget. Summary tables have been provided to you. The President's budget document is being presented to Congress today with his budget message. Our detailed justification books are at the printer and will be forwarded to the committee in a few days. I will give you the highlights, and Mr. Lilly will then brief you on the fiscal year 1971 budget in more detail. (The summary tables referred to follow :)

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION