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COMMITTEE ON APPROPRIATIONS

JAMIE L. WHITTEN, Mississippi, Chairman

EDWARD P. BOLAND, Massachusetts

WILLIAM H. NATCHER, Kentucky

NEAL SMITH, Iowa

JOSEPH P. ADDABBO, New York

CLARENCE D. LONG, Maryland

SIDNEY R. YATES, Illinois

DAVID R. OBEY, Wisconsin

EDWARD R. ROYBAL, California

LOUIS STOKES, Ohio

TOM BEVILL, Alabama

BILL CHAPPELL, Florida

BILL ALEXANDER, Arkansas

JOHN P. MURTHA, Pennsylvania

BOB TRAXLER, Michigan

JOSEPH D. EARLY, Massachusetts

CHARLES WILSON, Texas

LINDY (MRS. HALE) BOGGS, Louisiana

ADAM BENJAMIN, Jr., Indiana

NORMAN D. DICKS, Washington

MATTHEW F. McHUGH, New York

BO GINN, Georgia

WILLIAM LEHMAN, Florida

JACK HIGHTOWER, Texas

MARTIN OLAV SABO, Minnesota

JULIAN C. DIXON, California

VIC FAZIO, California

W. G. (BILL) HEFNER, North Carolina

LES AuCOIN, Oregon

DANIEL K. AKAKA, Hawaii

WES WATKINS, Oklahoma

WILLIAM H. GRAY, III, Pennsylvania

BERNARD J. DWYER, New Jersey

SILVIO O. CONTE, Massachusetts
JOSEPH M. McDADE, Pennsylvania
JACK EDWARDS, Alabama
JOHN T. MYERS, Indiana
J. KENNETH ROBINSON, Virginia
CLARENCE E. MILLER, Ohio
LAWRENCE COUGHLIN, Pennsylvania
C. W. BILL YOUNG, Florida
JACK F. KEMP, New York
RALPH S. REGULA, Ohio
CLAIR W. BURGENER, California
GEORGE M. O'BRIEN, Illinois
VIRGINIA SMITH, Nebraska
ELDON RUDD, Arizona
CARL D. PURSELL, Michigan
MICKEY EDWARDS, Oklahoma
BOB LIVINGSTON, Louisiana
BILL GREEN, New York
TOM LOEFFLER, Texas
JERRY LEWIS, California
CARROLL A. CAMPBELL, Jr.,

South Carolina
JOHN EDWARD PORTER, Illinois

Keith F. Mainland, Clerk and Staff Director

AGRICULTURE, RURAL DEVELOPMENT AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1982

Tuesday, March 3,1981.
OFFICE OF THE SECRETARY

Departmental Administration
Office Of Governmental And Public Affairs

WITNESSES

JOAN S. WALLACE, ASSISTANT SECRETARY FOR ADMINISTRATION CLAUDE W. GIFFORD, ACTING ASSISTANT SECRETARY, OFFICE OF

GOVERNMENTAL AND PUBLIC AFFAIRS JEANNE M. STANEK, BUDGET OFFICER, OFFICE OF OPERATIONS AND

FINANCE

Stephen B. Dewhurst, Budget Officer, Department Of

Agriculture William J. Mills, Acting Head, Resource Management Staff,

Office Of Governmental And Public Affairs

Opening Remarks

Mr- Whitten. The Committee will come to order.

We have with us today Dr. Joan Wallace, Assistant Secretary for Administration, Claude W. Gifford, Acting Assistant Secretary, Office of Governmental and Public Affairs, and their associates.

We are glad to have you before us, and I will let you proceed in your own way.

I believe you know Mrs. Smith, our ranking Republican member of the subcommittee. She has been active in agricultural matters quite a while.

Dr. Wallace. Thank you, Mr. Chairman.

Let me introduce Ms. Jeanne Stanek, who is Budget Officer for the Office of the Secretary and the Departmental Administration, and you know Mr. Gifford, Steve Dewhurst, and Mr. William Mills.

Mr. Whitten. We will include the biographical sketch of Mr. Gifford.

[The information follows:]

Biographical Sketch Of Claude W. Gifford

Claude W. Gifford is serving temporarily as Acting Assistant Secretary of Governmental and Public Affairs. Over the last 9V4 years he has served in the Department of Agriculture as Director and Deputy Director of Public Affairs.

During this time he has served on the Advisory Council on Printing and Publication Services, Government Printing Office; on the Federal Audiovisual Committee; on the Advisory Committee to the Cornell University Department of Communication Arts; as Communicator in Residence and as Executive in Residence at the University of Illinois; and as Chairman, Journalism Department, Graduate School, U.S. Department of Agriculture.

Mr. Gifford held various editorial positions on Farm Journal Magazine for a number of years and prior to that was Assistant Extension Editor at the University of Illinois. He is the former president of the American Agricultural Editors' Association, and served on the Commission on Agricultural Credit, Farm Credit System, and on the Presidential Task Force on Rural Development. He is a member of the American Agricultural Economics Association, Agriculture Communication in Eduction, and the Agricultural Relations Council.

Mr. Gifford is a graduate of Iowa State University, Ames, Iowa, with honors in Agricultural Economics and Journalism, with membership in Cardinal Key, Sigma Delta Chi, Alpha Zeta, Gamma Sigma Delta, and Delta Sigma Rho. He grew up on a farm in Illinois where he was active in 4-H Club and FFA activities.

FISCAL YEAR 1982 BUDGET REQUEST

Dr. Wallace. We are here today to talk with you and members of the subcommittee on the budget request for the Office of the Secretary and for Departmental Administration.

OFFICE OF THE SECRETARY

The Office of the Secretary appropriation continues to provide funding for the Departments top-level policy officials and their staffs. This includes the immediate Office of the Secretary, the Deputy Secretary, the Under Secretaries, the Assistant Secretaries, the Administrative Law Judges, and the Judicial Officer.

The fiscal year 1982 budget request for the Office of the Secretary totals $5,408,000, an increase of $488,000 over the current estimate for fiscal year 1981. Specifically this increase consists of the following two items:

$111,000 for increased operating costs in order to effectively sustain fiscal year 1981 performance levels for continued programs and $377,000 for restoration of the fiscal year 1981 budget reduction associated with the impact of the hiring limitation and resulting operating cost reductions.

Mr. Whitten. I might interrupt to say we have before us your written statement. It will appear in the record and receive full study, but touch upon the highlights if you would.

Dr. Wallace. I will be glad to do that.

DEPARTMENTAL ADMINISTRATION

In departmental administration we have a request for $20,442,000. This is an increase of $6,205,000.

Mr. Whitten. What did Mr. Stockman say about that; did he initial it before you came down?

Dr. Wallace. I think he has seen this.

Refinancing

The increase sounds substantial, but it really isn't very much. Actually the largest portion of the increase is related to a refinancing scheme for the working capital fund.

Mr. Whitten. The word "scheme" sounds a little bad. Could you think of a better word?

Dr. Wallace. Plan.

Mr. Whitten. Okay.

Dr. Wallace. It is really our effort to transfer funding for data services and some administrative services under the Office of Operations and Finance from the working capital fund to an appropriate account.

We previously had been charging the working capital fund for services that should not be appropriately charged there.

This plan was approved in the 1981 Appropriations Act; It is the reason for the large increase, the $4,385,000. It is not a new program. It is just moving money from one side to the other.

Mr. Whitten. But you are not moving the same amount of money, are you?

Dr. Wallace. Yes. It is the same amount of money.

Mr. Whitten. In other words, it is reorganization.

Dr. Wallace. Yes; it is reorganization of the working capital fund to an appropriation account. It is more appropriately an appropriation.

Mr. Whitten. If it were a capital fund you might not spend it at all. Appropriations get on the line, and one-twelfth is spent per month, and so forth.

Dr. Wallace. In the working capital fund, this particular item was funding data services headquarters staff people whose salaries would be and have been funded all along.

We were charging the working capital fund for their services. We really should not be doing that. We should be only charging the working capital fund for direct services, not indirect costs.

That is the reason for the move. We wanted to make the funding much more appropriate.

SYSTEMS DEVELOPMENT

The other amount is $350,000 which is to purchase software to develop management systems, at the request of the agencies.

One of the systems that we need is in the area of energy conservation. We are required to provide data on the use of energy in our cars, the 12,000 county offices and the other offices and laboratories. At this point we have no way of capturing that data.

We are mandated by OMB to develop a reporting system for grants and cooperative agreements, APHIS, for example, has asked us to examine and develop a reporting system for brucellosis, and the Forest Service wants us to develop a reporting system related to land managment. There are other systems such as office automation and real property and motor vehicle information systems.

SMALL AND DISADVANTAGED BUSINESS UTILIZATION

Other items of increase in the departmental administration are very small. Small and Disadvantaged Business Utilization is a small office of about 10 staff people that was founded because of Public Law 95-507. It is to help us to provide for participation of small and disadvantaged businesses in the Department's procurement program.

The Department purchases about $2 billion worth of goods and services a year. We are to see to it that minorities and small business participate in the purchases.

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