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GENERAL STATEMENT

Mr. OTERO. Mr. Chairman, may I emphasize the tremendous importance for the commission that this amount that is requested as a supplemental appropriation be approved to allow the committee to get under way? The commission right now is acting on borrowed time and on borrowed space from a number of other agencies, and the approval of this supplemental appropriation for fiscal year 1979 would allow us to get under way, subject to your considering the proposed budget as a whole for the overall life of the commission.

AMOUNTS REQUESTED TO REMAIN AVAILABLE UNTIL EXPENDED

Mr. SLACK. Both in the 1978 and also in the 1980 request you propose that the amounts remain available until expended; is that correct?

Mr. OTERO. That is correct.
Mr. SLACK. What is the authority in the law for that language?
Mr. OTERO. I yield to my attorney.

Ms. ARROWSMITH. We would like to have no year money so that we can have the money

Mr. SLACK. The question is, do you have authority in law to do that?
Ms. ARROWSMITH. I am afraid I don't know, myself.
Mr. SLACK. Does the authorization provide for that?
Ms. ARROWSMITH. Oh, yes.
Mr. SLACK. It does

provide for that.
Ms. ARROWSMITH. It would not prohibit it.
Mr. SLACK. But it doesn't provide for it, does it?
Ms. ARROWSMITH. That is right.

Mr. SLACK. Since it isn't authorized, it would be considered as legislation and therefore would be subject to a point of order on the floor of the House, if we let it stay.

Ms. ARROWSMITH. Usually these laws have specific authorization for the money to be available until expended?

Mr. SLACK. It has to be.
Ms. ARROWSMITH. Perhaps we should put that in the amendment.

BASIS OF REQUEST

Mr. Slack. The supplemental request is premised on the availability of funds as of what date?

Ms. ARROWSMITH. We are hoping that the money could be available to us by June 1.

Mr. SLACK. Suppose it is not until August?

Ms. ARROWSMITH. That would be a problem. I understand that legislation will come out at the end of May, so we did the budget figures as of June 1. Mr. SLACK. We are talking about a supplemental appropriation. Ms. ARROWSMITH. Yes.

Mr. Slack. We are not talking about legislation. We are talking about the supplemental appropriation.

Ms. ARROWSMITH. I understand.

Mr. SLACK. Suppose it didn't come out until August, you wouldn't need the $224,000 then, would you?

Ms. ARROWSMITH. The work would just have to go on longer at the other end, I am afraid.

Mr. SLACK. But that money would not

Ms. ARROWSMITH. It will be very tight with the $224,000 as it is, but perhaps we would have to hire some consultants or some special experts to try and get moving so that we can get this under way as fast as possible.

Mr. SLACK. I don't think you understand my question.
Ms. ARROWSMITH. I understand.

Mr. SLACK. Suppose this supplemental is not enacted until, say, the end of August. You stated that you anticipated this money on the basis of what?

Ms. ARROWSMITH. June 1.

Mr. SLACK. June 1, so you have June, July, and August, and so you would not need the full $224,000. You would need that amount less the 3 months' pay, would you not?

Ms. ARROWSMITH. I am sure that we could find ways to speed up the program.

Mr. SLACK. Speed it up or spend it?

Ms. ARROWSMITH. To speed it up, sir, because as it is, I had originally projected that we would need $375,000 for this fiscal year, but when I realized that it would be very complicated to try to get this subcommittee to agree to the amount in addition to the amount already requested in the President's budget, we streamlined the program for 1979 in order to bring ourselves within the $224,000.

SERVICE OF FUNDS

Mr. SLACK. Are you getting resources from any other government agencies? Ms. ARROWSMITH. No, there are no resources available yet. Mr. SLACK. Can they help you with the staffing problem?

Ms. ARROWSMITH. The Justice Department has graciously already supplied three people, including myself. They are covering my salary temporarily, that of a secretary, and a detailee. We are in some space that they are graciously lending us, although we are getting pushed out. Mr. SLACK. Where is that space ?

Ms. ARROWSMITH. We are in the Safeway Building where the interagency task force used to be. The people on the rest of the floor have already been promised the space, and are very anxious to get it, so we are having problems.

Mr. SLACK. Where is the space that you are now?
Ms. ARROWSMITH. In the Safeway building.
Mr. SLACK. Where?
Ms. ARROWSMITH. The Safeway building.
Mr. SLACK. Where is that?

Ms. ARROWSMITH. 521 12th Street, a private building leased by the Justice Department.

Mr. SLACK. How much room do you have there?
Ms. ARROWSMITH. We have four rooms.
Mr. SLACK. Do you have furniture, desks, and so forth?

Ms. ARROWSMITH. Right. These have been left over from the previous body, the interagency task force. I keep expecting movers to come every day and take them away. They have already been tagged by a part of the Justice Department that is waiting for this furniture.

Mr. SLACK. Mr. O'Brien, do you have questions regarding the supplemental requests for fiscal year 1979?

Mr. O'BRIEN. No. I may have some to offer for the record, Mr. Chairman, but I don't have any at the moment.

Mr. SLACK. We thank you for your appearance before the committee, and we wish you well. You have a very, very difficult task.

Mr. OTERO. Thank you, Mr. Chairman.

Mr. SLACK. Let's try to not wait 2 more years to decide the way to travel on this immigration policy.

Ms. ARROWSMITH. Right, and the sooner we have the money, the sooner we can get under way to do the job.

Mr. SLACK. We will help as best we can.
Ms. ARROWSMITH. Thank you.

Mr. OTERO. Mr. Chairman, on behalf of the commission as a whole, I want to thank you for the time that you have given us, and we hope that you will favorably dispose of the supplemental appropriation.

Mr. SLACK. Thank you, sir.
Mr. OTERO. Thank you, sir.
Thank you, Mr. O'Brien.
Mr. O'BRIEN. Thank

you.

SMALL BUSINESS ADMINISTRATION

TUESDAY, MARCH 27, 1979.

WITNESSES

A. VERNON WEAVER, ADMINISTRATOR
WILLIAM H. MAUK, JR., DEPUTY ADMINISTRATOR
HERBERT T. MILLS, DIRECTOR, OFFICE OF BUDGET AND FI-

NANCE

Mr. SMITH. We have a supplemental request which we will consider for $620 million for the disaster loan program.

We will insert the justification at this point in the record. [The information follows:]

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For an additional capital for the "Disaster Loan Fund," $620,000,000; to remain available without fiscal year limitation.

EXPLANATION OF LANGUAGE

This request will provide the funds necessary to assist the victims of storms and flooding in the Northeast, Midwest, and Southwest. In addition, funds will be required to provide the financial assistance to victims of agricultural drought in Texas, Oklahoma, Louisiana, Michigan and other states adversely affected.

The request also provides $6 million for the cost of salaries and related expenses required in the processing of loan applications associated with the above program levels. These funds will be made available through an ad justment to the President's FY 1979 rescission request of Salaries and Expenses Fund.

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This supplemental request for $620 million is required to provide financial assistance
for the remainder of FY 1979 to the disaster victims who have suffered damages arising from
various storms, floods and droughts. Also, provides $93 million to finance additional interest
cost over our previously approved Budget. (See Table I)

Current estimates of Physical Disaster approvals for FY 1979 indicate that the demand
for these loans will approximate 72,000 loans for $1.1 billion. As of the end of February
38,890 loans for $549 million have been approved of which 4,479 loans for $300 million were
drought related (see Table II). We currently have 3,760 applications on hand and in process
for a total value of $148 million. In addition, we expect to accept another 14,006 applications
for $273 million from existing disasters and 15,000 applications for $150 million to provide
financial assistance to victims of future disasters which are anticipated to occur during the
remainder of the year.

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