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WELFARE APPROPRIATIONS FOR 1961

HEARINGS

BEFORE THE

SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS

UNITED STATES SENATE

EIGHTY-SIXTH CONGRESS

SECOND SESSION

ON

H.R. 11390

MAKING APPROPRIATIONS FOR THE DEPARTMENTS OF
LABOR AND HEALTH, EDUCATION, AND WELFARE, AND
RELATED AGENCIES, FOR THE FISCAL YEAR ENDING

JUNE 30, 1961, AND FOR OTHER PURPOSES

PART 1

(OF TWO PARTS)

PAGES 1 THROUGH 1322

WEDNESDAY, FEBRUARY 10, THROUGH THURSDAY, MAY 5, 1960

Printed for the use of the Committee on Appropriations

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1960

SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS

LISTER HILL, Alabama, Chairman DENNIS CHAVEZ, New Mexico

THOMAS H. KUCHEL, California RICHARD B. RUSSELL, Georgia

MARGARET CHASE SMITH, Maine WARREN G. MAGNUSON, Washington ROMAN L. HRUSKA, Nebraska JOHN STENNIS, Mississippi

GORDON ALLOTT, Colorado JOHN O. PASTORE, Rhode Island

STYLES BRIDGES, New Hampshire, A. S. MIKE MONRONEY, Oklahoma

ex officio
ALAN BIBLE, Nevada
ROBERT C. BYRD, West Virginia
CHAIRMAN CARL HAYDEN, Arizona,
ex officio

HERMAN E. DOWNEY, Clerk to Subcommittee
IT

J6o A6 86th . v. 13

DOCUMENTS LABOR-HEALTH, EDUCATION, AND WELPPRE

APPROPRIATIONS FOR 1961

1

WEDNESDAY, FEBRUARY 10, 1960

U.S. SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, D.C.
The subcommittee met at 10 a.m., pursuant to call, in room 1318,
New Senate Office Building, Hon. Lister Hill, chairman of the sub-
committee, presiding.
Present : Senators Hill, Hayden, and Smith.

DEPARTMENT OF LABOR

STATEMENT OF HON. JAMES P. MITCHELL, SECRETARY OF LABOR; ACCOMPANIED BY JAMES E. DODSON, ADMINISTRATIVE ASSISTANT SECRETARY, DEPARTMENT OF LABOR

GENERAL STATEMENT OF SECRETARY MITCHELL

Senator Hill. The committee will kindly come to order. We are glad to have with us this morning the Secretary of Labor, Hon. James P. Mitchell. Mr. Secretary, we would be delighted now to have you proceed in your own way and make any statement you see fit with reference to the appropriations for your department.

Secretary MITCHELL. Mr. Chairman, Senator Hayden, and members of the committee, I have a very brief prepared statement which I would like to read and it goes as follows: The estimate of funds required from all sources for various functions totals $556,886,000. This represents a net increase of $6,083,100 orer 1960. The table presented in the attachment here shows a breakdown of the increase as follows:

For salary and expense items, $4,233,500 of which $3.5 million is due to new legislation enacted at the last session of Congress pertaining to labor-management reporting and disclosure. There is also an increase of $213,000 distributed to various appropriations accounts of the Department to cover the cost of the new health insurance progtam for Federal employees which becomes effective July 1. The increase shown of $10 million for grants to States pertains principally to the increase of wages of State employees. We show on this statement a reduction in the amount of money required for the payment of unemployment insurance benefits of $13 million.

The beginning of the revision of the Consumer Price Index is well

underway.

1

Senator HILL. Excuse me. Do you mind if we interrupt you as you go along?

Secretary MITCHELL. Not at all.

INCREASE OF WAGES OF STATE EMPLOYEES

Senator HILL. With reference to this $10 million of grants to States, which is principally an increase of wages of State employees, just what are those increases and how are they made?

Secretary MITCHELL. Those are increases, Mr. Chairman, that result in the main from the operation of State merit systems or State increases in pay and wages for all State employees, of which the employment security system employees are a part.

Senator Hill. I see. This is your matching part, so to speak, of these increases that are made by the States under their different systems?

Secretary MITCHELL. It is not matching, sir. As you may recall, for State employees who administer the employment security program in the States, the grants appropriation is for the entire cost.

Senator HILL. In other words, the Federal Government in that particular puts up the entire amount, but this is simply to keep in line with the overall increase in the particular States, is that right?

Secretary MITCHELL. That is right, sir.
Senator Hill. I see; all right, thank you, Mr. Secretary.

Secretaary MITCHELL. The committee will recall the revision of the Consumer Price Index is a 5-year program. For the fiscal year 1961, which is the second year of this program for this purpose, an increase of $1,020,000 is requested.

The employees compensation fund shows an increase of $3,819,000. This is caused principally by the transfer of charges formerly financed out of appropriations made to the Public Health Service for the treatment of Federal employees injured in the line of duty. It is my understanding that the Bureau of the Budget has made a downward adjustment in the Public Health Service as an offset to this increase.

Salary and expense items for administration of the entire Department make up less than 10 percent of the total estimate. The bulk of the budget is for grants to States and benefit payments.

WORKLOAD ACCELERATION

The workload of the Department has accelerated due to increased responsibilities placed on it by new labor legislation and other actions authorized by the last two sessions of Congress. I have in mind enactment of legislation in the areas of maritime safety, pension-welfare reporting and labor-management reporting. We have underway the revision of the Consumer Price Index, the new wage statistics program, and we have assumed responsibility for all of the Govern. ment's labor force statistics.

The above activities have placed unusual demands on the entire staff of the Department and I am proud of the manner in which they have accepted and carried out their respective duties.

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