Second, to give an accounting of the $244 million appropriated to the Army under the authorization of Public Law 783, 81st Congress, as amended,

Third, to analyze our future construction requirements as we now know them, and

Fourth, to cover joint utilization of facilities by the several Reserve components.

LONG-RANGE REQUIREMENTS FOR FACILITIES

The long-range requirements for facilities are derived from the Reserve components troop program which, in turn, is based on troop strengths approved by the Secretary of Defense and on plans for fighting future wars, as approved by the Joint Chiefs of Staff. This troop program is a listing of National Guard and Army Reserve units which the Army will mobilize in event of an emergency. The Department of Defense has given the Army revised long-range paid drill strengths for use in the development of long-range plans and programs in support of the Reserve components.

These revised troop strengths are well below those previously used and will affect our long-range facilities requirements. Although the revised troop structure was approved by the Secretary of the Army on July 8, 1958, it will be several months before a complete implementing plan, to include a stationing list based on the new troop distribution, can be developed. The Army, however, plans to utilize all adequate facilities, either existing or programed, under the revised troop structure. This policy is clearly outlined in the plan for reorganization of the Reserve components of the United States Army which is the Army Staff's instruction to field agencies for implementing the revised troop structure; the plan states

consistent with other governing considerations, implementation of this plan envisages that existent and programed facilities will be utilized to the maximum by the Reserve components.

DETERMINATION OF CONSTRUCTION REQUIREMENTS

Construction requirements for the Army Reserves are determined as follows:

There is a little difference between the way the Reserves are set up and the way the Guard is set up. The Army Reserve units are allocated to the Army commanders who in turn station these units in towns and cities, where they establish that there will be sufficient numbers of participating reservists to fill the units to authorized strengths. Based on facilities policies, construction standards, and space criteria published by Department of the Army, the Army commanders survey their facility requirements and develop plans for the stationing and housing of the Army Reserve units.

The construction requirements for the National Guard are computed in a different manner. The Army does not assign National Guard units to the States. The units are offered by the Army and accepted by the States. In accepting, the States must consider their capability to man, house, and train the offered units.

Standard designs have been prepared by the Army for those locations where new construction is required. These designs, including space criteria and construction standards, have been reviewed and accepted by the Department of Defense and the Bureau of the Budget.

The States are not required to adhere to these designs. However, Federal contributions to the States for National Guard facilities are based on approved space criteria and construction standards. Where the States exceed these standard designs, they pay 100 percent of that additional cost.

In addition to armories, standard designs have also been prepared for nonarmory support facilities, including storage, administrative, maintenance, and outdoor training facilities; these supplementals are funded 100 percent federally.

EXPENDITURE LIMITATIONS

To speak a little bit about our program last year, expenditure limitations imposed on the Army for fiscal year 1958 and fiscal year 1959 made it necessary to reduce the fiscal year 1958 program from the $55 million level approved by the Congress. Although there has now been a relaxation of these expenditure controls, the Army budget has not permitted any new obligation authority in the fiscal year 1959 budget now under consideration.

Senator CHAVEZ. I do not quite understand that. If we make the money available why does the Army budget preclude the expansion?

CARRYOVER FUNDS

General SEEMAN. Our present plan in the Reserve Forces program is to go into 1959 on carryover funds from fiscal 1958.

Senator SMITH. Mr. Chairman.

In other words, if you do not use the money this year for construction it is held over until next year? It does not go back to the Treasury?

General SEEMAN. Yes, Mr. Chairman. These are no-year funds. Senator CHAVEZ. But you do not use it for any other purpose but that?

General SEEMAN. No, sir. We submit it in the funding plan just like the regular MCA program.

Senator SMITH. There is not any transfer authority in that?
General SEEMAN. Not at present.

Senator CHAVEZ. Let us keep it that way.

General SEEMAN. The fiscal year 1958 program, according to preliminary year-end figures, resulted in $38.1 million of direct obligations ($15.9 million for Army National Guard and $22.2 million for Army Reserve).

The carryover of funds into fiscal year 1959 of $45 million will be utilized to accomplish a $40 million program in fiscal year 1959. The Army is confident that all of the facilities projects to be accomplished under continuation of the authority of Public Law 783, 81st Congress, as amended, are valid long-range requirements for the reorganized Reserve components. The funds available for the 2 fiscal years 1958

and 1959 break down as follow.

There is a table here, Mr. Chairman, which will be included in the record, and the figures substantiate what I have given you in narrative form.

(The table referred to follows:)

General SEEMAN. Of the $244 million so far appropriated by the Congress for the Reserve program authorized by Public Law 783, as amended, $83 million is accounted for in the above table; the funds already obligated, $161 million, were utilized during the period fiscal years 1951-57 to construct 932 National Guard armories, 206 National Guard nonarmory projects, and 180 Reserve centers.

Senator CHAVEZ. You are listing the locations of the National Guard armories to be included?

General SEEMAN. Yes, sir; we have submitted lists to the committee covering both the Reserve Force and the National Guard, which cover the program which we now envisage.

(The lists referred to follow :)