GRANTS FOR THE CONSTRUCTION OF STATE NURSING HOMES This program authorized in 1964 provides for grants to States to assist in the construction of nursing home facilities for war veterans. Grants may be made for new buildings, for the expansion or remodeling of existing buildings, and for initial equipment for such buildings. The grant may not exceed 50% of the cost of any project. The number of beds to be provided for this purpose in any State may not exceed 11⁄2 beds per thousand war veteran population. The authorization for this program permitted the appropriation of $5 million each year for five years beginning in 1965, or a total of $25 million. The request of $4 million for 1967 will provide a total of $6.5 million under this authorization GRANTS FOR CONSTRUCTION OF STATE NURSING HOMES NEW OBLIGATIONAL AUTHORITY Includes $100,000.000 proposed legislation (cold war GI bill). 2 Includes anticipated supplementals. Analysis of change in budget expenditures The subcommittee will stand in recess until 2 o'clock when we will hear from the FCC. (Whereupon, at 12:15 p.m., the hearings were recessed until 2 p.m. on the same day.) (Afternoon session, 2:10 o'clock, Monday, May 23, 1966.) FEDERAL COMMUNICATIONS COMMISSION STATEMENT BY ROSEL H. HYDE, ACTING CHAIRMAN; ACCOMPANIED BY KENNETH A. COX, COMMISSIONER; BERNARD STRASSBURG, CHIEF, COMMON CARRIER BUREAU; JAMES E. SHERIDAN, CHIEF, BROADCAST BUREAU; WALLACE E. JOHNSON, ASSISTANT CHIEF, BROADCAST BUREAU; MARTIN I. LEVY, DIVISION CHIEF, BROADCAST BUREAU; CURTIS B. PLUMMER, CHIEF, FIELD ENGINEERING BUREAU; IRVING BROWNSTEIN, DEPUTY CHIEF, SAFETY AND SPECIAL RADIO SERVICES BUREAU; RALPH J. RENTON, CHIEF ENGINEER; HENRY GELLER, GENERAL COUNSEL; MAX D. PAGLIN, EXECUTIVE DIRECTOR; DAVID S. POLLEN, DEPUTY EXECUTIVE DIRECTOR; AND RICHARD F. SOLEN, BUDGET OFFICER 1966 APPROPRIATION AND 1967 BUDGET REQUEST Senator MAGNUSON. All right. The subcommittee will come to order. We have before us today, the Federal Communications Commission, Acting Chairman Hyde being here, and Commissioner Cox and other members of the staff. We will place their names in the record in full. For the purpose of the record, last year the Commission's appropriation was $17,338,500. The budget estimates for this year were $17,520,000, and the House recommended the same amount as last year, $17,338,000, which is $181,500 under the budget estimates. PREPARED STATEMENT All right. We will put your letter in the record in full. You also have a statement. Mr. HYDE. I would like to present the statement. It is about 10 pages. (The statement follows:) FEDERAL COMMUNICATIONS COMMISSION, Hon. WARREN G. MAGNUSON, DEAR SENATOR MAGNUSON: Attached hereto is a copy of the statement which, on behalf of the Commission, I will present to your Subcommittee on Independent Offices Appropriations on May 23, 1966. This statement constitutes our carefully considered effort to justify to your committee the restoration to this Commission of the full budget allotment of $17,520,000 for fiscal 1967 requested by the President. We ask the Subcommittee to act to restore the $181,500 reduction in Commission funds approved by the House. The Commission respectfully submits that denial of the full Presidential request will have serious adverse consequences upon the Commission's ability to meet its many continuing, and demanding regulatory responsibilities. While any loss of this magnitude might well be absorbed in a larger budget, it would represent a sizeable decrease in the already limited resources which the Commission is able to draw upon. Sufficient copies of this statement are provided for distribution to all members of the Subcommittee. Sincerely yours, ROSEL H. HYDE, Acting Chairman. (The statement was presented orally.) RESTORATION OF HOUSE CUT Senator MAGNUSON. All right. That is fine. Mr. HYDE. Chairman Magnuson and members of the committee, the Federal Communications Commission respectfully and urgently requests that the subcommittee provide in the Commission's fiscal 1967 budget the full amount of $17,520,000 recommended by the President. We request that the subcommittee restore the amount of $181,500 which the House report would subtract from the President's fiscal year 1967 budgetary request. The House report covering its authorization for fiscal 1967 is attached hereto as appendix A for your information. In order to inform the committee regarding the Commission's efforts toward more effective administration, I am also attaching hereto as appendix B the initial part of Chairman Henry's statement of March 7, 1966, before the House Appropriations Committee. I would suggest that this be read as general background for the statement I am presenting to the subcommittee which particularizes the Commission's current responsibilities and requirements. EFFECT OF House Cur A 1967 appropriation of $17,338,500 as proposed by the Housewhile equal to the Commission's budget for the current fiscal yearwill nevertheless result in a further reduction in Commission staff of approximately 18 man-years in fiscal year 1967. It is respectfully submitted that, if enacted into law, the indicated reduction would have a seriously adverse effect on the essential activities of the Commission, including its major new programs, as well as its continuing day-to-day operational requirements. EXPANSION AND GROWTH IN COMMUNICATIONS FIELD Communications is an ever-changing and growing field, both in its technology and its application of technology to the needs of an expanding economy and ever-improving standard of living. I notice a reference to the Commission's jurisdiction as an "Expanding and Demanding Universe." This is the heading of an article which will appear in Fortune magazine. It is so descriptive of what is happening that I thought I might refer to it here. Senator MAGNUSON. All right. Mr. HYDE. The Commission is constantly being challenged to deal with new service concepts in addition to providing upon an effective basis its regular, established, licensing and regulating functions. International communications, space communications for both domestic and international purposes, the nationwide growth of our television system, community antenna television, the almost literal explosion of data communications, the structure of telephone industry |