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DEPARTMENT OF DEFENSE—ANALYSIS OF PLANNED UTILIZATION OF ADDITIONAL APPROPRIATIONS PROVIDED BY CONGRESS OVER THE PRESIDENT'S BUDGET-FISCAL YEAR 1967

(In thousands of dollars)

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Retention of existing appropriation structure in lieu of

proposal to combine Army Reserve and Army National Guard:

Personnel accounts.....

0. & M. accounts...
Additional officers in pay group "A": Reserve personnel,

Navy.
Continuation of 25 heavy airlift squadrons National Guard:

Personnel, Air Force.

0. & M., Air National Guard. Continuation of B-52 fleet at 600 aircraft: Operation and

maintenance, Air Force.. NIKE-X antiballistic missile system:

PEMA....

R.D.T. & E., Army...
OH-6A light observation helicopter: PEMA....
Nuclear powered guided missile frigate (DLGN) SCN.-...
F-12 long range interceptor APAF.....
CX-2 aeromedical transport APAF.....
Deep submergence systems project: R.D.T. & E., Navy.
High priority antisubmarine warfare programs: R.D.T. &

Navy.........
Advanced manned strategic aircraft development pro-

gram: R.D.T. & E., Air Force....
Manned Orbiting Laboratory; R.D.T. & E., Air Force ...
Special foreign currency program....

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V

I

6,000 153,500 14,400 19.900 150, 500 55, 000 2,500

7,500 11, 800 50,000 7. 348

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16.000

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...........

1 Used to finance fiscal year 1969.
2 Applied to AMSA program for fiscal year 1968.

DEPARTMENT OF DEFENSE-ANALYSIS OF PLANNED UTILIZATION OF ADDITIONAL APPROPRIATIONS PROVIDED BY CONGRESS OVER THE PRESIDENT'S BUDGET-FISCAL YEAR 1968

lin thousands of dollars)

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Continuation of current active number of B-52 aircraft:

Military personnel, Air Force.... .............
0. & M., Air Force....

Aircraft procurement, Air Force...
Continuation of Air Force airlift units-Reserve and
Guard :

Reserve personnel, Air Force....
National Guard personnel, Air For
0. & M., Air Force...

0. & M., Air National Guard.. .
Fleet command financial management: 0. & M., Navy.-
EA-6A aircraft-PAMN....
Nuclear powered guided missile destroyers (DLGN):

SCN. .
CX-2 aeromedical transport: APAF.
Aircraft modifications: APAF.....
C-130 aircraft: APAF........
Advanced manned strategic aircraft: R.D.T. & E., Air Force.
Unspecified increase: R.D.T. & E., Air Force

5,600

5.600

2,500

2.500

106, 700
134,800
25,000
53,200

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106, 700
134, 800
16,000
25.000
60.000
25,000
15,000
417,000

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15,000

Total

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I Applied to CX-2 (C-9A) program for fiscal year 1969. ? Applied to AMSA program for fiscal year 1969.

DEPARTMENT OF DEFENSE-ANALYSIS OF PLANNED UTILIZATION OF ADDITIONAL APPROPRIATIONS PROVIDED

BY CONGRESS OVER THE PRESIDENT'S BUDGET-FISCAL YEAR 1969

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3.000

DOD APPROPRIATION ACT, 1969
Retention of 4 airlift units:

Reserve personnel, Air Force..
National Guard personnel, Air Force...

C. & M., Air National Guard.....
Advanced nuclear submarines: SCN....
Spare parts for NIMITZ class Carriers: SCN..
VFX-1: R.D.T. & E., Navy.....
Advanced nuclear" propulsion plants for submarines:

R.D.T. & E., Navy...

4,000

mins

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Total......

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GOVERNMENT OF THE DISTRICT OF COLUMBIA,

EXECUTIVE OFFICE,

Washington, D.C. April 9, 1969. Hon. SAM J. ERVIN, Jr., Chairman, Subcommittee on Separation of Powers, U.S. Senate, Washington, D.C.

DEAR SENATOR ERVIN: Further reference is made to your letter of February 5, 1969, addressed to the Honorable Walter E. Washington, pertaining to those instances since 1945 in which funds appropriated to the District of Columbia have been withheld by the Bureau of the Budget.

We have reviewed the records in regard to reserves which were established for the District of Columbia. Under the budget process reserves are set up in connection with loans made to the District for capital outlay to assure that agencies live within their budget totals.

Only in fiscal year 1969 were funds placed in reserve for economic reasons. This action, taken to comply with Public Law 90-364, had the effect of making the District "freeze" $21.8 million of its Federal funds along with Federal agencies. Sincerely yours,

D. P. HERMAN, Budget Officer, D. C.

FEDERAL TRADE COMMISSION,

Washington, D.C., February 25, 1969. Hon. SAM J. ERVIN, Jr., Chairman, Subcommittee on Separation of Powers, Committee on the Judiciary, U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN : In answer to your letter of February 5, 1969, requesting information pertaining to reserves placed on this Commission's appropriated funds by the Bureau of the Budget, our records reflect that on only three occasions have reserves been placed on FTC funds and all three instances were the result of Congressional Direction, as follows:

1951 Fiscal Year- $100,000 reserve was set up on October 6, 1950, in accordance with Sec. 1214 of the Independent Offices Appropriation Act, Public Law 759—81st Congress.

This reserve was released by the Bureau of the Budget on March 9, 1951, as follows, “The reserve for savings has been eliminated in order to begin enforcement operations under P.L. 899, approved December 29, 1950." This was the Celler-Kefauver Antimerger Act amending Sec. 7 of the Clayton Act.

1968 Fiscal Year-Reserve of $329,000 by Congressional Direction. Release was authorized and applied to employee pay raise costs.

1969 Fiscal Year-Reserve of $292,000 established by Congressional Direction. We have requested the release of this reserve for application to employee pay raise costs. Sincerely yours,

PAUL RAND Dixon,

Chairman.

FEDERAL MARITIME COMMISSION,

OFFICE OF THE CHAIRMAN,

Washington, D.C., February 12, 1969. Hon. SAM J. ERVIN, Jr., Chairman, Subcommittee on Separation of Powers, U.S. Senate, Washington, D.C.

DEAR SENATOR ERVIN: I am pleased to reply to your inquiry of February 5, 1969, concerning the question of presidential or executive impoundment of funds.

The Federal Maritime Commission was established as a separate agency in August 1961, as a result of Reorganization Plan No. 7 of 1961. Funding for the agency consists of salaries and administrative expenses for a staff of approximately 250 employees.

There has been no instance in which funds appropriated to the Federal Maritime Commission have been impounded or frozen by the Bureau of the Budget.

The Revenue and Expenditure Control Act of 1968, Public Law 90-364, placed restrictions on hiring and provided for reductions in obligations and expenditures in fiscal year 1969.

At the request of the Bureau of the Budget, this agency developed a “Plan for 1969 Budget Reductions" indicating an estimated saving of $76,000 to result from implementation of provisions of Public Law 90-364.

That amount has been established as an apportionment reserve with the recommendation that it be made available to reduce the supplemental required to cover the cost of civilian pay increases in 1969. I will be pleased to furnish additional data if needed. Sincerely yours,

JOHN HARLLEE, Rear Admiral, 0.8. Navy (Retired), Chairman.

U.S. HOUSE OF REPRESENTATIVES,
COMMITTEE ON MERCHANT MARINE AND FISHERIES

Washington, D.C., March 3, 1971.
Hon. SAM J. EBVIN, Jr.,
Chairman, Subcommittee on Separation of Powers,
Senate Committee on the Judiciary,
New Senate Office Building,
Washington, D.O.

DEAR MR. CHAIRMAN: This will acknowledge your letter of February 11. advising of the study engaged in by your Subcommittee on Separation of Powers of the constitutional separation of powers between the legislative, executive, and judicial branches of the Government.

I note that your subcommittee is primarily interested in seeking information on examples of impoundment of funds appropriated by the Congress by the Executive branch of the Government. In this regard, my Subcommittees on Fisheries and Wildlife Conservation and Oceanography developed information in joint hearings in April and May of 1970, which I think will be useful to you and your subcommittee.

In a series of letters dated January and February, 1970, addressed to my Committee on Merchant Marine and Fisheries, the director of the Bureau of Commercial Fisheries (now known as the National Marine Fisheries Service) announced that BCF was in the process of sharply reducing its research capabilities in an effort to meet the fiscal year 1971 budget requirements. According to these letters and supplemental information obtained by the Committee, four research vessels were to be deactivated and four laboratories were to be closed or their research capabilities sharply reduced.

During the hearings, the Committee discovered that funds appropriated by the Congress and earmarked for research activities were impounded and subsequently diverted to other uses. The Department of Interior and Related Agencies Appropriation Act for fiscal year 1970 (P.L. 91-98) included the addons over and above BCF's request in the amount of $2,320,000. Of this amount,

$877,000 was designated for specific research projects or activities. The Committee learned that OMB impounded $627,000 of the research add-ons and used them to cover, in part, the cost of pay raises. The Committee also learned that for fiscal year 1971 OMB impounded $737,000 of BCF's appropriations and again intended to use these funds to cover, in part, the cost of pay raises. The $737,000 is the total amount of the congressional add-ons for the operation of the research laboratories at Milford, Connecticut and Ann Arbor, Michigan. After co-ordinated efforts of the Members of my Committee and other Members of the House, OMB finally released the funds for operation of the Milford and Ann Arbor laboratories, the purpose for which they were originally intended.

I might point out that it was documented at the Committee hearings that not only members of my two subcommittees, but also members of the Subcommittee on Interior and Related Agencies expressed great concern over OMB's impounding of funds appropriated by the Congress which, in turn, were utilized for purposes other than for which they were appropriated.

Since it does not appear I will be able to testify at your subcommittee hearings in March, I would appreciate your including this letter in the printed record of your subcommittee hearings. Should you find that additional information is needed on the examples I have given, please feel free to get in touch with me or my committee staff. Sincerely,

EDWARD A. GARMATZ,

Chairman.

GENERAL SERVICES ADMINISTRATION,

Washington, D.C., March 13, 1969. Hon. SAM J. ERVIN, Jr., Chairman, Subcommittee on Separation of Powers, Committee on the Judiciary,

U.S. Senate, Washington, D.O. DEAR SENATOR ERVIN: This is with respect to your letter of February 5, 1969, requesting information on those instances since 1945 in which appropriated funds have been withheld from this agency by the Bureau of the Budget. The delay in responding to your letter was due to the need to research records that had been retired.

Beginning with fiscal year 1950, the year when General Services Administration was established, a review of all available records has now been completed. This review reveals only one instance of a withholding of funds, and it is reportable within category three of your letter. The specifics of this event are :

"An appropriation reserve of $21 million was established in fiscal year 1951 in the appropriation 'Sites and Planning, Public Buildings outside the District of Columbia,' pursuant to Section 1214 of the General Appropriation Act, 1951 (Public Law 759, 81st Cong.). Subsequently, appropriation rescission of these funds was accomplished by Chapter XII of the Supplemental Appropriation Act, 1952 (Public Law 253, 82d Cong.)."

Although not specifically asked for in your letter, we are reporting that during fiscal year 1969 sayings have generated as a result of Section 201 of the Rere nue and Expenditure Control Act of 1968 (Public Law 90-364). They total $922,296, and are presently in an apportionment reserve. However, the President has proposed the release of these reserves in House Document No. 91-50 in order that they can be applied toward financing the costs of the second phase of the Federal Salary Act of 1967 and increases to wage board employees It is hoped that this information meets your requirements. Sincerely,

J. E. MOODY, Acting Administrator.

CONGRESS OF THE UNITED STATES,

HOUSE OF REPRESENTATIVES,
COMMITTEE ON APPROPRIATIONS,

Washington, D.C., March 15, 1971.
Hon. SAM J. ERVIN, Jr.,
U.S. Senator,
U.S. Senate,
Washington, D.C.

DEAR SENATOR ERVIN: Thank you so much for your letter of March 9.

Due to our fuzzy schedule in the House of Representatives, we are having difficulties deciding what any of us are going to do on a given date so I may not be able to be personally present at your hearing on the 23rd, 24th, or 25th However, I would like to put together some statistics and put them in the record and I am also going to mark parts of my own hearing record for the past couple of years on this retention of funds by our deep freeze agency. tbe Bureau of the Budget, and send it to you.

The Bureau of the Budget is decreeing and authorizing through their holdbacks our entire national policy. I will get the material over to you as soon as I can but I would appreciate your holding the record open. I have a feeling if we don't put an end to the Executive line item veto by freezing that Congress might as well go out of the appropriations business. With my warmest personal regards, I am Yours most sincerely,

JULIA BUTLER HANSEN, M.C.

CONGRESS OF THE UNITED STATES,

HOUSE OF REPRESENATAIVES,
COMMITTEE ON APPROPRIATIONS,

Washington, D.O., March 26, 1971.
Hon. SAM J. ERVIN, Jr.,
U.S. Senator,
U.S. Senate,
Washington, D.C.

DEAR SENATOR ERVIN: I am enclosing a self-explanatory copy of an editoria in THE OREGONIAN and a self-explanatory letter from myself to THE OREGONIAN. · I think the entire subject of the separation of powers and where power is residing is finally beginning to come through to the people of the United States

I will also send you marked copies of our hearings when they are published ! With my warmest personal regards, I am, Yours most sincerely,

JULIA BUTLER HANSEX, M.C.

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