THIRD SUPPLEMENTAL APPROPRIATION BILL, 1957

92032

HEARINGS

BEFORE THE

COMMITTEE ON APPROPRIATIONS

UNITED STATES SENATE

EIGHTY-FIFTH CONGRESS

FIRST SESSION

ON

H. R. 7221

AN ACT MAKING SUPPLEMENTAL APPROPRIATIONS FOR
THE FISCAL YEAR ENDING JUNE 30, 1957, AND
FOR OTHER PURPOSES

Printed for the use of the Committee on Appropriations

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1957

THIRD SUPPLEMENTAL APPROPRIATION BILL, 1957

MONDAY, MAY 13, 1957

UNITED STATES SENATE,
COMMITTEE ON APPROPRIATIONS,

Washington, D. C.

The committee met at 10 a. m., pursuant to call, in room F-37, the Capitol, Hon. Carl Hayden (chairman) presiding.

Present Chairman Hayden, Senators Chavez, Robertson, Stennis, Saltonstall, Young, Dworshak, and Potter.

DEPARTMENT OF DEFENSE

DEPARTMENT OF THE ARMY

MILITARY PERSONNEL

STATEMENTS OF MAJ. GEN. WILLIAM S. LAWTON, DIRECTOR OF ARMY BUDGET, OCA, AND BRIG. GEN. ALBERT WATSON II, DIRECTOR OF PERSONNEL PLANS, ODCSPER

TRANSFER OF FUNDS

Chairman HAYDEN. The committee will be in order.

The Army is here before us today to request a supplemental of $27,444,000 for "Military personnel," which was not considered by the House. The proposed transfer is to provide funds for costs incident to Public Law 881, approved August 1, 1956, which provided for the Government's contribution to the Federal old-age and survivors insurance trust fund, effective January 1, 1957.

JUSTIFICATION

The justification will be placed in the record at this point. (The justification referred to follows:)

The supplemental fund request of $27,444,000 is to cover a net increase in cost which cannot be financed within the amount currently appropriated for "Military personnel, Army, 1957."

The revised 1957 estimate includes additional cost for increased price factors and new legislation as follows:

1. Increased price factors:

In millions

(a) Increased MSTS passenger and cargo rates
(b) Increased railroad passenger and freight rates, and change in
experience factors..

$8. 1

8.0

(c) Increased requirements for allowances for dependents..
(d) Greater increases in actual average pay rates than were antici-
pated to result from the Career Incentive Act of 1955.

14. 0

44. 1

Total increased price factors..

74. 2

2. New legislation:

In millions

(a) Increased compensation for doctors and dentists-Public Law
497, 84th Cong., Apr. 30, 1956.

(b) Readjustment pay for personnel involuntarily separated after
extended service-Public Law 676, 84th Cong., July 9, 1956.
(c) Contributions to the Federal old-age and survivors insurance
trust fund-Public Law 881, 84th Cong., Aug. 1, 1956__.

Total new legislation____

Total additional costs for 1957_

$6.8

11. 5

23.9

42.2

116. 4

The revised 1957 strength estimate is for an end strength 45,300 below the number previously approved and a decrease of 30,700 in average strength as reflected below:

The overall dollar estimate of $3,594,138,612 based upon the 1,003.4 manyears indicates that $89 million of the additional cost of $116.4 million can be financed from the funds already appropriated. The balance of $27,444,000 is the amount of supplemental funds needed, and represents the net difference between the amount appropriated and the revised budget estimate. The funds needed are $14.8 million below the amount required for new legislation.

Schedule on supplemental appropriations and revised estimates, military personnel, Army, Mar. 22, 1957

9. Estimated supplemental required__.

10. Estimated supplemental included in latest budget.---.

Schedule on supplemental appropriations and revised estimates, military personnel, Army, Mar. 22, 1957-Continued

Chairman HAYDEN. General Watson, we will be pleased to hear from you.

General WATSON. Mr. Chairman and gentlemen, I am pleased to have the opportunity to appear before this committee. My purpose today is to present the Army's request for authority to effect an appropriation transfer within the funds available for fiscal year 1957.