legislation the apportionments is $2.5 billion for fiscal 1960, dropping down to nothing for 1961 and climbing to $500 million for 1962. Under the moratorium and contract controls plan, the same situation would exist. We would drop down to making no apportionment this year and apportion a maximum of $500 million next year. You may wonder how we could apportion $500 million next year. That is because the effect of an apportionment is not felt materially until about 18 months to 2 years after the apportionment. (Next chart displayed.) Mr. TALLAMY. This chart 2-B shows the same situation for the obligation feature of the three considerations. Under the 12-cent gas tax plan, we have the obligations shown. Under the existing legislation plan, obligations drop in 1960 to about $1.8 billion and drop down to $400 million in 1961. The interesting thing to point out here and the most important thing, I think, for your consideration is that under the moratorium and contract controls plan, the obligations for contracts drop down to $400 million level in fiscal 1960 as compared to a similar drop in fiscal 1961 under present legislation. That is the only substantial difference, and that occurs because, of course, we defer the contracts for a 9-month period. (Next chart displayed.) Mr. TALLAMY. This chart 2-C is the expenditures chart for the three different conditions. The expenditure drops down from $2 billion in 1960, under the existing legislation, to $1 billion in 1962 and down to about $800 million in 1963. Under the 12-cent plan, expenditures remain above $2 billion all the way through from 1962 to 1964. I think that is the important comparison, that in 1963 expenditures are $2.4 billion under the 12cent plan and only $800 million under existing legislation. Under the moratorium plan, the expenditures remain somewhat higher. The pattern is similar, but a little bit lower all the way through, because of the fact that we delay contract obligations this year. I have just two more charts of importance. I am hurrying through them. We can refer to them later in the question period, Mr. Chair man. (Next chart displayed.) Mr. TALLAMY. This chart 2-D is the deficit picture. No deficit under the 12-cent plan, but keeping in mind that since we are past the July 1 date, this line from 1960 to 1964 will be somewhat below this one shown-about $150 million below. Under existing legislation, and using the existing apportionments for contract controls, we have a maximum deficit of $1 billion occurring in 1961, reducing to $600 million in 1962, and it cancels out in 1963. Under the moratorium plan there is a $150 million deficit in 1960, canceling out in 1961. (Next chart displayed.) Mr. TALLAMY. This final chart 3 has to do with what the situation would be if we continued under existing legislation and with the moratorium and contract controls plan, and extended the life of the trust 44357-59——3 |