Independent Offices Appropriations, 1965, Hearings Before ... 88-2

This is the fourth budget I have had the privilege to present to this committee and in my sincere and honest judgment it is the tightest and tautest ever developed by the FAA and calls for a reduction in both positions and new obligational authority. This means that the assurances which I have previously given you that the Agency's growth would level off have in fact been realized and documented in cold print.

PERSONNEL SITUATION, 1962-64

You will recall that when I appeared before you to present our 1962 fiscal year appropriations we requested 2,629 additional positions. In 1963 we sought an increase of 3,998 positions. By last year we had substantially checked the Agency's rate of growth, but we still requested an additional 1,030 positions. For 1965 the Agency plans to meet its obligations to the public and the aviation community with 919 positions fewer than authorized for the current fiscal year.

The Agency has been most appreciative of the support which the Congress has given to its program since the FAA's establishment in 1958. We have, therefore, felt a special obligation to hold positions and expenditures to lower levels than those approved by the Congress, if any means to do so could be found. Although the Agency continued to grow during the 1962-64 period, fewer employees were added in those 3 years combined than in the 1961 fiscal year alone.

EFFECT OF PAY INCREASES

The effect of Federal pay increases and the need to maintain and operate additional facilities scheduled for commissioning during the 1965 fiscal year has made it extremely difficult to reduce our total funding needs. We have, however, asked for total appropriations of $16.4 million less than approved by the Congress for the 1964 fiscal year for comparable appropriations. We are thus coming before the Congress asking for fewer positions and less money in the face of a continued steady growth in aviation.

INCREASE IN FAA OPERATIONS

During the 1963 calendar year total operations handled by FAA air traffic control towers increased 10 percent, aircraft handled at centers increased 5 percent, domestic trunkline revenue passenger miles increased about 14 percent, and aviation fuel consumption increased about 11 percent. Our latest figures for the period June 30, 1963, to March 31, 1964, indicate a 14-percent increase in operations at towers over a similar period a year ago and a 9-percent increase in aircraft handled at centers. Our forecasts for 1965 indicate a continued growth in virtually every aspect of aviation.

The question will naturally arise as to how FAA can cope with further increases in workload with reduced appropriations and manpower. Or, to put it another way, have we in our zeal to be efficient managers of public safety service risked too much? We think we have stretched it taut, but not beyond the limit. If there are more savings we will realize them. If we have been unrealistic in our economy, we will come back and advise this subcommittee whose respect and confidence we earnestly seek. There are two principal rea

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sons why it is possible to proceed prudently on this budget if you do not cut it any deeper than it was presented.

Senator MAGNUSON. All right.

TOTAL 1964 APPROPRIATION

Now, right there, you state that, on page 2:

We have asked for total appropriations of $16 million less than was approved by the Congress for the 1964 fiscal year.

Senator ALLOTT. For comparable appropriations.

Senator MAGNUSON. What do you mean by that, because I have $16 million-plus here?

Mr. HALABY. The request is for $756,850,000. Last year's request was for $833,341,000. That was the appropriation actually

SUMMARY

Senator MAGNUSON. Can you put in the record how much money total you got for 1964? Wherever you put it, put in the total. (The information referred to follows:)

Comparative statement of appropriations for 1964 and estimates and amounts recommended in the bill for 1965

1 Appropriated in 1963 Independent Offices Appropriations Act, Public Law 87-741.

2 Not available for obligation until July 1, 1965.

3 No comparable request in 1965.

Senator ALLOTT. Let's get these down.

Mr. ALEXANDER. It is $833,341,000 authorized for fiscal 1964.
Senator ALLOTT. Authorized?

Mr. ALEXANDER. Appropriated, sir. It is this FAAP appropriation that is confusing the issue because it was appropriated in 1963, but not available until 1964.

BUDGET COMPARISON, 1964 AND 1965

Senator MAGNUSON. All right. On page 7, when you make these comparisons from 1964 to 1965, you have a minus $76 million. But if you put in the $60 million, you have your $16 million?

Mr. HALABY. Exactly.

Senator MAGNUSON. Put this summary on pages 6 and 7 in the record so we can understand it.

We will have to move along here.

(The summary referred to follows:)

Summary of budget estimates, fiscal year 1965

Senator MAGNUSON. All right.

On page 3, you have said that the Senator from Oklahoma explained the 75-70 on the floor.

Senator ALLOTT. I am going to leave that to both of you entirely. Senator MAGNUSON. You are now on page 3 where you have the heading, "Completion of Funding of Major Installation Programs. You start out by saying you have been able to reduce significantly your request for facilities and equipment due to substantial completion of the funding of important elements of the air traffic control and navigation system.

This is what you want to talk about?

GROWTH IN FAA ACTIVITY

Mr. HALABY. Yes, sir. I have two charts which I would like to enter in the record if the committee permits, that show the comparative rate of growth of FAA and FAA's aviation activity, workload.

This starts in 1950 and goes out here to the end of fiscal 1965 and it shows 100 percent in 1950 as the index and at 900 percent here at the top of the vertical line.

The domestic aviation fuel consumption line starts here and increases in these years to 900 percent. The available seat-miles here increase to approximately 780 percent. The revenue passenger-miles increase to about 700 percent.

Down here, we show aircraft operations at FAA towers and that increases approximately to 220 percent, and it shows the hours flown by general aviation at about 170 percent.

Now, what this shows for budgetary figures is a rapid increase from the establishment of FAA to fiscal year 1965. Each year there is a substantial increase in the number of positions requested, a substantial increase in the number of dollars requested for appropriation, until this year. This shows what we have been able to do and it shows that we are projecting a very serious and significant increase in productivity in order to carry more workload with fewer people. This indicates here that the peak was $833 million. That included $80 million in pay increases over these years and $30 million in military functions that had not been envisaged back in here. It showed a peak personnel authorized of 47,111, and it shows that our current budget, our current fiscal 1965 budget asks for 919 positions less.

GROWTH RATE ARRESTED

Now, it shows that this rapid rate of growth has been arrested. And in fact, since last August we have 1,000 fewer employees. So it isn't just a reduction of a projection, which is often the presentation, it is an actual reduction.

EFFECT OF HOUSE CUT

Now, this also shows what a $56 million cut by the House would do to us. It could tilt this down completely contrary to all the trends of our workload and we cannot live with it. That is the point.

Now, just to take the last 3 years the first chart shows a 15-year trend-I think you and we have a right to be proud of the record. Here in 1961 is where we started. You will recall my telling you last year that the projection was for 57,000 jobs and a $960 million budget 5 years later. The fact is we are now requesting about 12,000 fewer jobs and about $200 million less in dollars. The only way we can do that is because you have given us money to buy the navigation and communication facilities and you have permitted us to mechanize and automate the system so that we can show annual productivity increases of about 4 percent across the system.

So with everything else going up, the Agency's funding level and personnel level is coming down. That is the real significance of this budget, and I think it completely documents the claim that, even though, in these early years, the Agency was growing perhaps very fast, perhaps too fast and too big, that has not been the case in these last 3 years. And if these charts could be put in the record, sir, I believe they would be helpful in dissolving the myth that the Agency is on an uncontrolled expansion.

Senator MAGNUSON. Without objection, we will put those in the

record.

(The charts referred to follow :)

COMPARATIVE RATES OF GROWTH

FAA AND REPRESENTATIVE AVIATION ACTIVITY MEASURES
FISCAL YEAR 1950 = 100