BUDGET RESCISSION BILL (H.R. 17505) HEARINGS BEFORE SUBCOMMITTEES OF THE COMMITTEE ON APPROPRIATIONS NINETY-THIRD CONGRESS SECOND SESSION 42-275 O Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1974 GEORGE H. MAHON, Texas, Chairman JAMIE L. WHITTEN, Mississippi EDWARD P. BOLAND, Massachusetts GEORGE E. SHIPLEY, Illinois ROBERT N. GIAIMO, Connecticut FRANK E. EVANS, Colorado EDWARD R. ROYBAL, California LOUIS STOKES, Ohio J. EDWARD ROUSH, Indiana GUNN MCKAY, Utah TOM BEVILL, Alabama EDITH GREEN, Oregon ROBERT O. TIERNAN, Rhode Island BILL CHAPPELL, Florida BILL D. BURLISON, Missouri GORDON E. CASEY ELFORD A. CEDERBERG, Michigan J. KENNETH ROBINSON, Virginia C. W. BILL YOUNG, Florida KEITH F. MAINLAND, Clerk and Staff Director NICHOLAS G. CAVAROCCHI GEORGE E. EVANS ROBERT B. FOSTER JOHN M. GARRITY NOTE. This Surveys and Investigations supervisory staff is supplemented by selected personnel borrowed on a reimbursable basis for varying lengths of time from various agencies to staff up specific studies and investigations. The current average annual full-time personnel equivalent is approximately 42. BARBARA L. CHAMBERS GERARD J. CHOUINARD PAUL V. FARMER PATRICIA A. KEMP VIRGINIA MAY KEYSER ADMINISTRATIVE SUPPORT MARCIA L. MATTS CHRISTINE STOCKMAN BETTY LOU TAYLOR G. Homer Skarin, Richard N. Malow, and Paul E. Thomson, Staff Assistants TUESDAY, NOVEMBER 19, 1974. DEPARTMENT OF HOUSING AND URBAN RESCISSION AND DEFERRAL OF BUDGET AUTHORITY WITNESSES JAMES L. MITCHELL, UNDER SECRETARY DAVID B. de WILDE, DEPUTY ASSISTANT SECRETARY FOR HOUSING PRODUCTION AND MORTGAGE CREDIT-FHA COMMISSIONER DAVID O. MEEKER, JR., ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT WILLIAM LILLEY, DEPUTY ASSISTANT SECRETARY FOR POLICY DEVELOPMENT IRVING MARGULIES, ASSOCIATE GENERAL COUNSEL, EQUAL OPPORTUNITY LITIGATION AND ADMINISTRATION DIVISION ALBERT J. KLIMAN, DEPUTY DEPARTMENTAL BUDGET OFFICER Mr. ROUSH. The committee will be in order. Mr. Boland asked me to chair the committee this morning. We have with us today Mr. James L. Mitchell, the Under Secretary, and I understand you are accompanied by Mr. de Wilde, Mr. Meeker, Mr. Lilley, Mr. Margulies, and Mr. Kliman. Anyone else, Mr. Secretary, that you have with you? Mr. MITCHELL. No; they are the gentlemen at the table, Mr. Chairman. Mr. ROUSH. Do you have a prepared statement? Mr. ROUSH. We want to welcome you to this first hearing of the subcommittee in connection with the new rescission and deferral authority contained in the Congressional Budget and Impoundment Control Act of 1974. The Department is requesting the Congress to rescind the balance of contract authority available for the college housing program and to defer appropriations and contract authority available for a number of other programs, including $260 million of section 235 contract authority. We will have a number of questions concerning these requests. Do you have justifications in any form? Mr. MITCHELL. Yes, sir, we have submitted explanations to the committee. JUSTIFICATION MATERIAL Mr. ROUSH. Without objection we will place in the record at this point those portions of House Document No. 93-365 that pertain to the Department of Housing and Urban Development and the explanation material. [The material follows:] House Document No. 93-365 Rescission Proposal No.: R75-5 PROPOSED RESCISSION OF BUDGET AUTHORITY REPORT PURSUANT TO SEC. 1012 OF PUBLIC LAW 93-344 Agency: Department of Housing and Urban Development. Appropriation title and symbol: College Housing-86X4058. New budget authority (Public Law Other budgetary resources (contract authority) Amount proposed for rescission.. Description $14,518, 000 14,518, 000 The College Housing program was authorized by Title IV of the Housing Act of 1950, as amended. It has provided financial assistance to colleges and eligible hospitals for the construction or acquisition of housing and related facilities through debt service grants which reduce the cost of borrowing on the private market. No new approvals have been made under the program since January 8, 1973, on the basis that the program was an inefficient means of providing higher educational assistance for needy students. The College Housing program provided benefits to all residents regardless of income while doing little to reduce the financial barrier to higher education for low-income students. Unused contract authority in the amount of $14,518,000 is estimated to be available as of June 30, 1974. Title II of the recently enacted Housing and Community Development Act of 1974 could provide assisted housing for eligible lowincome students under a new Lower Income Housing Assistance Program. HUD is moving promptly to implement this program. In view of the availability of the revised leasing program, new debt service grant commitments are not warranted. Rescission of this contract authority is therefore requested under the provisions of the Antideficiency Act. Estimated effects Rescission of the amount shown above will not interfere with the Federal Government's ability to assist needy students either to attend college or find suitable housing. Use of these funds would increase Federal outlays by an additional $15 million annually up to 40 years, beginning in FY 1977. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, HOUSING PRODUCTION AND MORTGAGE CREDIT, COLLEGE HOUSING LOANS AND OTHER EXPENSES The limitation otherwise applicable to the total payments that may be required in any fiscal year by all contracts entered into under Title IV of the Housing Act of 1950, as amended (12 U.S.C. 1749 et seq.), is hereby reduced by the uncommitted balances of authorizations heretofore provided for this purpose in Appropriations Acts. The authority proposed for rescission is not needed to assist students to attend college or to obtain adequate housing. This proposed rescission reflects a move toward providing more equitable support for college students based on financial need. The Department of Health, Education and Welfare provides assistance to lower income students through the Basic Educational Opportunity Grant program and a guaranteed student loan program. The Department of Housing and Urban Development provides housing for low-income families under the Lower Income Housing Assistance program. |