Table C shows the inequities in the distribution of Federal subsidies for urban renewal and public housing. A conclusion which can be drawn from our study is that the Federal urban renewal and public housing programs are not meeting the basic problems, and are not serving the most vital purposes expressed by the Congress in the laws which established these programs. In the Housing Act of 1937, as amended, the Congress said: "It is hereby declared to be the policy of the United States to promote the general welfare of the Nation by employing its funds and credit, as provided in this Act, to assist the several States and their political subdivisions to alleviate present and recurring unemployment and to remedy the unsafe and unsanitary housing conditions and the acute shortage of decent, safe, and sanitary dwellings for families of low income, in urban and rural nonfarm areas, that are injurious to the health, safety, and morals of the citizens of the Nation." In the Housing Act of 1949, as amended, the Congress stated: "The Congress declares that the general welfare and security of the Nation and the health and living standards of its people require housing production and related community development sufficient to remedy the serious housing shortage, the elimination of substandard and other inadequate housing through the clearance of slums and blighted areas, and the realization as soon as feasible of the goal of a decent home and a suitable living environment for every American family, thus contributing to the development and redevelopment of communities and to the advancement of the growth, wealth, and security of the Nation." Because the urban renewal and public housing programs are not serving the intent of the Congress, the justification originally given can no longer be applied and, for this reason, the programs should be terminated, not expanded, as proposed in the budget request. The full report of the study, "The Impact of Federal Urban Renewal and Public Housing Subsidies," and study facts relating to the States of each member of the subcommittee have been provided to the subcommittee clerk. Appended to this testimony are the national chamber's specific, recommended budget cuts for the independent offices. My colleagues and I will be happy to answer questions, either on the HHFA recommended budget cuts, or any of the others attached to this testimony. CHAMBER OF COMMERCE OF THE UNITED STATES RECOMMENDED REDUCTIONS IN THE FISCAL 1964 SUPPLEMENTAL BUDGET PROPOSALS FOR INDEPENDENT OFFICES Housing and Home Finance Agency Public works planning Budget request_- Recommended reduction___. $4, 000, 000 4, 000, 000 The experience of this program (estimated deficit of $10.4 million on loans of $58 million) indicates that basic changes are needed to make this revolving fund work. No additional funds should be authorized. National Aeronautics and Space Administration Research and development Budget request.. Recommended reduction_. -- $141, 000, 000 141, 000, 000 The entire supplemental is opposed on the grounds that Congress considered the manned-lunar-landing program carefully last session and reduced it. This attempt at restoration of well-considered appropriation cuts should be rejected. PROPOSED LEGISLATION (BUDGET PROPOSALS REQUIRING AUTHORIZING LEGISLATION WHICH THE CHAMBER OPPOSES) Housing and Home Finance Agency Low-income housing demonstration programs Budget request_--- $5, 000, 000 5, 000, 000 The request for new spending authority should be denied. The Housing Act of 1961 authorizes $5 million for this purpose, of which $1.2 million remained at the beginning of the current fiscal year. Results from these past expenditures should be evaluated before additional money is spent. Budget request.. Recommended reduction__‒‒ Urban renewal fund $1,400, 000, 000 1, 400, 000, 000 The urban renewal subsidy program should be terminated. The operation of this subsidy system results in giving Federal funds to the wealthier communities at the expense of the poorer communities. No evidence exists showing that housing improvement is any more rapid in subsidized localities than in unsubsidized ones. Continuation of this program to provide fair shares for all com:munities in the United States would require more than $100 billion in Federal spending. CHAMBER OF COMMERCE OF THE UNITED STATES RECOMMENDED REDUCTIONS IN THE FISCAL 1965 BUDGET PROPOSALS FOR INDEPENDENT OFFICES Federal Aviation Agency Operations, administration of flight standards program Budget request_ $85, 710, 000 29, 400, 000 During recent years the FAA has carried out more and more of its regulatory functions under this program with its own FAA personnel. This work, however, could be done by private agencies and individuals as in the past. The Project Horizon Report, prepared by the late President Kennedy's Task Force on Na tional Aviation Goals, contains the recommendation that the "FAA should ex pand the designee system under which many activities formerly performed by FAA personnel can be done by qualified and certified nongovernmental agencies." If such things as pilot proficiency examinations and aircraft airworthiness inspections were reassigned to licensed private inspectors, the budget request of $85.7 million could be reduced by $29.4 million. Operations, administration of medical standards Budget request--- $4, 195, 000 980, 000 The FAA is requesting $4.2 million for the setting of medical standards for flight crews. Under this program, the agency also supervises and directs certain aviation medical research. The medical research program duplicates to a degree similar efforts by the military. Even if the research is justifiable and similar activity is not already underway in other Government agencies, it could be undertaken by the military. We recommend that this FAA program be cut back by $980,000. Research and development Budget request... $42, 000, 000 1, 850, 000 In addition to the funds requested for the supervision of the aviation medical research program mentioned in the above budget request, $1,850,000 is requested for the program itself under his request. A large amount of special medical research, such as the space medicine program is underway. The applicability of these studies to aviation safety should be determined before committing additional fund in the field. Federal Power Commission Budget request_-_. Recommended reduction____ $13, 335, 000 2,635,000 The request represents an increase of over 100 percent for the agency since 1959. The average number of employees increased from 826 in 1960 to 1,127 in 1964. The request calls for an additional 94, an increase of 46.6 percent from 1960 to 1965. Continual annual increases in number of employees is not warranted by present workload. Further, there has been no congressional expansion of the authority nor the responsibilities of the Commission. For example, for regulatory functions involving the natural gas industry, 486 persons were employed in 1961, contrasted with 750 for 1964. The staff engaged in regulating the electric power industry has also grown, rising from 128 employees in 1961 to 216 for 1964. The increase has not been a result of added authority granted by Congress. An examination of the Commission's recent activities indicates that it has extended or is attempting to extend its jurisdiction beyond original congressional intent. This extension of jurisdiction has already proceeded to the point where it threatens to usurp the traditional functions of State regulatory bodies. For regulating non-Federal hydroelectric projects the staff increased from 173 in 1961 to 199 in 1964. Here again the statutory authority of the Commission has not been increased, but nevertheless the Commission has sought to extend its authority. Activities relative to Federal river development projects involved the employment of 39 persons in 1961 while 48 were employed in 1964. Again the re sponsibilities of the Commission have not been increased by Congress. It should be noted that the National Power Survey, started in 1962 and involving expenditures of $200,000 in fiscal year 1962, $380,000 in 1963, and $360,000 in 1964 is expected to end prior to fiscal year 1965. This item will not be present in 1965, and its elimination will more than pay for increases in budget needs. An appropriation of $10,700,000 would allow a staff of about 1,053 employees, 74 less than at present but 202 more than 1961, and would be only $1.150,000 less than that which was appropriated last year. The setting of priorities for the construction of new public buildings is largely discretionary. The recommendation allows for 100 of the 151 new projects included in the request. This program should be abolished. It provides benefits for a few of the elderly at the expense of most of the elderly. A program to provide equitably for all of the elderly would require about $75 billion. Low-rent public housing program, annual contribution Budget request---. $214, 000, 000 14, 000, 000 Annual contribution requirements have, for years, been overestimated. No information in the budget document indicates that any change has been made in estimating methods, and, consequently, it is assumed that the request for $214 million also is an overestimate. For this reason, the national chamber supports the $14 million reduction made in the House of Representatives. Low-rent public housing program, administrative expense Budget request---- $16, 670, 000 6, 870, 000 The low-rent public housing program is resulting in an inequitable distribution of grant funds, and should be terminated. Ending the grant program, however, would not end administrative expenses, since supervision will be required over the phasing out of Federal funds which have been committed for as much as 40 years into the future. Termination of the program, however, would result in elimination of the administrative expense incurred in developing new housing projects. For 1965, these expenses are estimated at $6 million. Elimination of this $6 million, together with a reduction in management administrative expense to the current level, would result in budget requirements of $9.8 million. Interstate Commerce Commission Budget request_-- Recommended reduction__ Salaries and expenses $25, 850, 000 1,261, 000 It is recommended that the proposed appropriation of $1,261,000 for locomotive inspection be eliminated. During the early days of railroading, steam locomotive inspection was necessary because of the steam engine which, if defective, could cause serious injury or death. This was the major reason for the enactment of the Locomotive Inspection Act in 1911. Today, however, the steam locomotive with its boiler has just about disappeared from the American railroad scene. The average number of steam locomotives per year on class I railroads during the 1926-30 period amounted to 58,979 compared to 537 electric and 28 diesel electric units. According to preliminary estimates the number of steam locomotives in 1963 totaled 10, diesel electric units 28,104 and electric units 434. The switch from steam power to diesel power has almost been completed. 1926-30 1931-35 1936-40 1941-45 1946-50 1951-55 1956-60 1961 1962 Source: "Yearbook of Railroad Information, 1963 Edition." It is our understanding railroad locomotives may undergo examination by three different groups of inspectors. First, the rail carrier itself inspects the locomotive. Secondly, an inspection is also made by other personnel from the ICC Section of Railroad Safety, which is responsible for inspecting safety appliances and brakes on both train cars and locomotives. Finally, there is the check by inspectors of the Section of Locomotive Inspection which also examines brakes, signal devices, and safety appliances. With numerous inspections by competent parties, there appears to be a definite overlapping or duplication of work. |