GRANTS FOR PUBLIC FACILITIES Program and Financing (in thousands of dollars) 1964 actual 1965 1966 estimate estimate 38,635 25,432 13,932 Under proposed legislation, 1966.-Legislation will be submitted to extend and strengthen the area redevelopment program which would otherwise terminate on June 30, 1965. The program is designed to improve the opportunities for the creation of new employment in areas of substantial and persistent unemployment and underemployment. The new proposals will tighten area eligibility criteria, expand the present industrial and commercial loan program for eligible areas, add authority to guarantee -25,432 -13,932 -3,432 private loans for working capital in connection with business loan projects, and restore and enlarge grants and loans for essential facilities which are required for economic development. Authority will also be sought to assist needy communities in meeting matching share requireincrease technical assistance, adding authority to make ments on other Federal grant-in-aid programs, and to planning grants for economic development purposes. -1,794 11,409 11,500 10,500 Grants are made to States and their political subdivisions, Indian tribes, and private or public nonprofit associations representing a development area, to assist in the construction or improvement of public facilities, in cases where the public facility project will improve opportunities for the location or expansion of industrial plants and facilities providing more than temporary alleviation of unemployment or underemployment. Grants are awarded only when the area has an approved overall economic development program, when the grant is necessary in order for the project to be undertaken, and the entity requesting the grant is contributing in proportion Public enterprise funds: [AREA REDEVELOPMENT FUND] [For loans and participations as authorized by section 6 and public facility loans as authorized by section 7 of the Area Redevelopment Act (75 Stat. 53), $59,500,000: Provided, That no part of the appropriations contained in this Act shall be used for adminis trative expenses in connection with loans and participations financed or to be financed with funds borrowed from the Secretary of the Treasury.] (Department of Commerce Appropriation Act, 1965.) Program and Financing (in thousands of dollars) 17,200 26,700 20,992 27,100 26,200 12,832 17,300 13,400 46,602 61,600 66,300 -66,300 Reservations and approvals brought 40.1 Less reservations and approvals carried [AREA REDEVELOPMENT FUND]-continued The Area Redevelopment Act provides for long-term loans at low interest rates to aid in the construction or expansion of commercial or industrial facilities and of related public facilities for the purpose of alleviating unemployment and underemployment within designated areas. Interest rates on commercial facilities are set by law and are at 4% for 1965 for industrial and commercial loans. Interest rates on public facility loans are at 3% in 1965. Industrial and commercial loans may run for 25 years and public facility loans up to 40 years. Loans may be made to States, localities, and public or private nonprofit organizations representing redevelopment areas when (a) the area is designated as a redevelopment area; (b) the project is consistent with an approved overall economic development program; (c) the project will provide more than temporary alleviation of unemployment or underemployment; (d) assistance will not be given to establishments that in relocating would cause unemployment in the originating area; (e) financial assistance is not otherwise available from private lenders or Federal agencies on reasonable terms; and (f) applicants have been approved by a State and local agency directly concerned with problems of economic development in the area. 1965 program: Less reservations and approvals carried Financing. The program was financed by a direct appropriation of $132 million in 1964 and $59.5 million in 1965. Operating results.-During the initial stages of the program, revenues are expected to lag behind expenses. The deficit results primarily from the allowance for losses, which is established at the rate of 6% for commercial and industrial loans, and 3% for public facility loans. Revenue, Expense, and Retained Earnings (in thousands of dollars) Revenue... The act authorized outstanding loans of not to exceed $100 million each for (a) industrial or commercial projects Urban commercial and industrial loans: in urban areas of substantial and persistent unemployment designated within specific criteria; (b) industrial or commercial projects in nonurban areas which are among the highest in number and percentages of low income families and where substantial underemployment exists; and (c) public facilities necessary for improving the opportunities for employment. Authorizing legislation expires June 30, 1965. Budget program.-Reservations for industrial and commercial loans for 1965 are estimated at $72 million, and for public facilities loans at $15 million. Fund reservations are made on approval of applications filed to determine eligibility and feasibility of the project. Reservations are converted into loan approvals after filing a full loan application and review by the Small Business Administration for commercial loans or the Housing and Home Finance Agency for public facility loans. Principal workload stages are as follows: Preliminary applications: Nonurban commercial and industrial loans: Revenue... Net operating income or loss, nonurban Net operating loss, urban commercial Public facility loans: Revenue.. Net operating income or loss, public Net operating income or loss, for the Deficit, end of year. Financial Condition (in thousands of dollars) Received.. Withdrawn or rejected. 130 Reservations issued (preliminary). Reservations and approvals outstanding begin 145 36 89 56 28 58 56 34 year.... 59 47 19 30 1963 actual 20 1964 1965 1966 actual estimate estimate 12 Assets: 24 Treasury balance.. Accounts receivable, net. 133 1,200 1,113 1,200 67,185 123,885 183,985 The relationship between reservations and obligations is set forth in the following table (in millions of dollars): 1966 estimate 258,737 -14,872 This Service was established by title X of the Civil Rights Act of 1964, and operates in the conciliation of disputes, disagreements, or difficulties threatening peaceful relations within communities. The Service, under the act, offers conciliation services upon request of local citizens or officials, or upon its own motion, and is referred public accommodations cases for conciliation on the motion of the courts. In order to create a national climate of compliance with the laws pertaining to civil rights, the Service encourages local citizens' groups to work together on programs to promote better under243,865 standing of both the provisions and principles of the act. National organizations are also encouraged to mount educational programs with the assistance of the Service. A National Citizens Committee for Community Relations, appointed by the President, works with the professional staff of the Service. The Service is required, by the act, to provide conciliation assistance in confidence and without publicity, and to hold confidential information acquired with the understanding that it would be so held. Object Classification (in thousands of dollars) -7,392 236,473 Analysis of Government Equity and Undrawn Authorizations (in thousands of dollars) 52,488 300,627 23,793 183,985 Subtotal.. 410,803 494,044 250,745 236,473 -300,000-300,000 Identification code 11.3 Positions other than permanent.... 11.5 Other personnel compensation.- Object Classification (in thousands of dollars) Identification code 06-10-4405-0-3-507 12.0 Personnel benefits... 21.0 Travel and transportation of persons. 66,300 25.1 Other services... 345 25.2 Services of other agencies. 23 21 10 10 642 48 83 95 20 375 21 10 6 99.0 Total obligations. For necessary expenses to carry out the provisions of the International Travel Act of 1961 (75 Stat. 129), including employment of aliens by contract for service abroad; rental of space abroad, for periods not exceeding five years, and expenses of alteration, repair or improvement; advance of funds under contracts abroad; payment of tort claims, in the manner authorized in the first paragraph of section 2672 of title 28 of the United States Code, when such claims arise in foreign countries; and not to exceed [$3,500 $5,000 for representation expenses abroad; [$3,000,000 $3,500,000. (Department of Commerce Appropriation Act, 1965.) Program and Financing (in thousands of dollars) 74 Obligated balance, end of year.. 72 Obligated balance, start of year.. 71 Total obligations (affecting expenditures).. 90 Expenditures.. 1 Selected resources as of June 30, are as follows: Unpaid undelivered orders, 1963, $1,146 thousand (1964 adjustments, -$5 thousand); $1,086 thousand; 1965, $1,186 thousand; 1966, $1,286 thousand. The United States Travel Service develops, plans, and carries out a program to stimulate and encourage travel to the United States by residents of foreign countries. The principal program activities are media relations, sales promotion, advertising, visitor services, and research. Nine overseas travel information offices serve as a center for answering public and trade inquiries on U.S. travel and as a headquarters for sales calls and other promotional activities. For 1966, funds are requested to intensify and further develop these existing programs. An average annual gain of 8.8% in the flow of overseas visitors to the United States was made in the 9-year period prior to the establishment of the United States Travel Service. Since establishment, the gains have been 17% in 1962, 22% in 1963, and 32.2% in the 11-month period through November 1964. Object Classification (in thousands of dollars) 10 16 Comparative transfers from other accounts. 25 Unobligated balance lapsing.... 2,900 3,400 Program by activities: 1964. 1. Preparation of national income and product data..... 2. Analysis of business trends. 543 3. Computation of the balance of payments. 4. Executive direction.............. 682 376 Total obligations..... Financing: |