Mr. BROOKS. Approved by whom? General PALLADINO. Approved by the Department of Defense, after consultation with your committee, sir. Mr. BROOKS. Then who is holding them up? General PALLADINO. I am afraid the available funds is the answer to that one, sir. In other words, we are expending very cent that we are allowed to expend. Mr. BROOKS. Do you have some charts you could show us very briefly? Because we don't have much time. The major bill is ready to go, almost ready to go. General PALLADINO. Well, there is one chart that will show the situation of our money. Mr. BROOKS. All right. General PALLADINO. I think that is probably the one you are interested in, sir. Mr. BROOKS. Let's see that. General PALLADINO. This chart gives a brief summation of the status of our construction funds under Public Law 783. Up to this date a total of 105 million have been appropriated. You will note that by the end of fiscal year 1957 we had obligated 54 million of the 70 million which have been appropriated. At the end the third quarter of fiscal 1958 we had obligated a total of 62 million. The total estimated obligation for fiscal year 1958 is $21 million, which will bring us to a total of $75 million obligated by the end of fiscal year 1958. It is anticipated that the $25 million of the remaining funds will be obligated in the fiscal year 1959 and the balance of $4,695,000 will be obligated in the fiscal year of 1960. Mr. BROOKS. Now, the money avialable ot you, which will bring your total up to $75 million-that money has already been appropriated? General PALLADINO. That has been appropriated. Mr. BROOKS. You have your hands on it? General PALLADINO. We have our hands on it, and it will be under contract by the 30th of June. Mr. BROOKS. So that at the end of this fiscal year you will have $75 million constructed in armories, out of a total needed of $105million! General PALLADINO. Out of the total moneys available of $105 million, sir. We need many more armories than that. Mr. BROOKS. Out of the total moneys available? Mr. BROOKS. Of $105 million? General PALLADINO. That is right, sir. Mr. BROOKS. Now, there is $30 million in money. Where is that money? General PALLADINO. That money has not been apportioned to us. Mr. BROOKS. It has been appropriated by Congress? General PALLADINO. Appropriated by Congress, but not appor tioned. Mr. BROOKS. How is it proposed to apportion it? General PALLADINO. It is my understanding that we will be allowed to spend $25 million of it or obligate $25 million of it next year. Mr. BROOKS. Next year? General PALLADINO. Fiscal 1959. Mr. BROOKS. Therefore, they say to you in effect "We have saved this money for you," and what you will have next year to spend will be the $25 million that Congress appropriated this last year? General PALLADINO. That is correct, sir. Mr. BROOKS. Now, then, that would bring you down through 1959? General PALLADINO. That is right, sir. Mr. BROOKS. Fiscal? General PALLADINO. That is right, sir. Mr. BROOKS. Is all of that program needed? Mr. BROOKS. Now, do you have any additional program that is needed at this hour which might be used in fiscal 1959? General PALLADINO. We have forty-odd million dollars in approved projects, sir, which means we will be $15 million short as far as funds are concerned. Mr. BROOKS. Oh, yes. So you could use-you really need $15 million more to bring your program down to where it should be with approved projects? General PALLADINO. That is right, sir. Mr. BROOKS. Do you have a list of those $15 million in additional projects? General PALLADINO. We can furnish that list, sir, if you so desire. Mr. BROOKS. When can you furnish it to us? General PALLADINO. We can give you that book right now, sir. Mr. BROOKS. All right, if you could we would like to put it in the record at this point. General PALLADINO. All right, sir. Mr. DUCANDER. Those are projects that have already been authorized. Mr. BROOKS. No, they are projects that are approved. General PALLADINO. Approved projects. Mr. BROOKS. But never been authorized; isn't that true? Mr. DUCANDER. They have been authorized, haven't they? General PALLADINO. They have been authorized but we don't have the money for them. Mr. DUCANDER. I know. But what the committee was interested in finding out are additional authorizations. Mr. BROOKS. No. He said Mr. DUCANDER. They are in the same position, Mr. Chairman, as the National Guard. They have some money on hand and authorizations pending. Mr. WINSTEAD. We are not furnishing money. We are giving authorizations. Mr. DUCANDER. That is true. Mr. WINSTEAD. If you had these authorized by this committee you would need no further legislation at that time. Now, what is the grand total of authorizations you have? I understand you have appropriated $25 million that you haven't been permitted to spend. General PALLADINO. Right, sir. Mr. WINSTEAD. But you are bound to have an authorization from this committee over and above your appropriations. What is your total authorization above that, that you now have appropriated? General PALLADINO. I am informed that you have already approved these projects that we are talking about now, sir. Mr. BROOKS. You don't need any authorization on that? Mr. BROOKS. That would give you, then, $135 million in your total that has been-of projects that have been authorized? General PALLADINO. I am afraid I will have to check that, sir. That doesn't strike a bell with me. Mr. BROOKS. Well, here is what you said, that you have money for $105 million in projects? General PALLADINO. Right, sir. Mr. BROOKS. Now, that is money available, but part of it has not been apportioned? General PALLADINO. That is right. Mr. BROOKS. Then you said you have $15 million in projects that are ready to go? General PALLADINO. Right, sir. Mr. BROOKS. And they are authorized projects? General PALLADINO. Right, sir. Mr. BROOKS. So that would mean, then, $120 million? General PALLADINO. That is correct, sir. Mr. BROOKS. Total authorized projects; isn't that true? General PALLADINO. That is true, sir. Mr. BROOKS. Then if you need any further help from this committee it would be for projects above the $120 million more? General PALLADINO. That is right, sir. Mr. BROOKS. And do you have any projects in that category? General PALLADINO. A quick estimate would be that we have at least $10 million worth of projects that are fully qualified at this time, that we could come up with, in addition to what we already have approved. Mr. BROOKS. Were they approved by the Army? General PALLADINO. They have not been approved by the Army. We would have to get approval by the Army. Mr. BROOKS. None of them have been approved by the Army? General PALLADINO. They have not been forwarded to the Department of Defense; no sir; but they are good, qualified Army projects. Mr. BROOKS. But not approved by the Army? General PALLADINO. Not approved by the Army. Mr. BROOKS. And not approved by Defense? General PALLADINO. No, sir. Mr. BROOKS. And certainly not approved by the budget? General PALLADINO. That is right, sir. Mr. BROOKS. I think that clears it up. Mr. WINSTEAD. What is the total number of projects they have completed at the present time? I believe the guard gave us the total number. General PALLADINO. Please let us refer to chart No. 1. Taking into consideration the projects that we have under bid advertising at this particular point, we will have a total of 308 either completed, under construction, or advertised. Mr. WINSTEAD. That is all right. Mr. BROOKS. I think that covers it. Thank you very much. Mr. DUCANDER. Do you have a list of the projects, General? General PALLADINO. We will finish you with that list of projects, sir. Mr. DUCANDER. Above the $120 million? General PALLADINO. Above the 120; yes, sir; we will do that. Military construction, Army Reserve Forces—U. S. Army Reserve construction program, fiscal year 1959 Mr. BROOKS. Now, let us proceed with reading the bill. Mr. DUCANDER. I will start reading the bill, Mr. Deininger, and if you will just comment and explain the provisions of the bill to the committee. Reading on page 1, line 3: That title 10, United States Code, is amended as follows: (1) That part of section 2233a that precedes clause (1) thereof is amended to read as follows: “Paragraph 2233. Acquisition. "(a) Subject to sections 2233a, 2234, 2235, 2236, and 2238 of this title and subsection (c) of this section, the Secretary of Defense may—” Now, can you explain the different provisions of the code there and how that is being amended? Mr. DEININGER. Yes, sir. The amendment which is involved in this language is designed to knock out the part of the present section 2233a which says: and after consulting the Committees of the Armed Services of the Senate and House of Representatives. The purpose of deleting that wording now is this transition to a line item type authorization. In other words, the consultation process will no longer be in effect, and it merely knocks out those words requiring the consultation, and they are superseded by a provision further on that requires us to come in on a line item basis. The one other provision says section 2233a, that is referred to here 2233a is a section which is added, which we will get to on page 2 here. It just includes 2233a so that any construction that is done is done subject to all the pertinent requirements of the present title 10 of the code, plus this additional section 2233a which is added on page 2. Mr. DUCANDER. And what are the present provisions that are listed here in the bill: 2233, 2234, 2235, 2236, and 2238? Mr. DEININGER. 2234 concerns two certificates, you might say, that the Secretary of Defense has to make in order to be authorized to make any expenditures or contributions under this act. One of them is that the number of units of the Reserve component of the Armed Forces located or to be located in the area within which the facility is to be provided is not and will not be larger than the number that can reasonably be expected to be maintained at authorized strength, considering the number of persons living in the area who are qualified for membership in those Reserve units. The second provision which the Secretary of Defense must certify to: The plan under which the facility is to be provided makes provision for the greatest practicable use of the facility jointly by units of two or more of these components. Those are present provisions of the code. Mr. DUCANDER. In other words, what I have just read on page 1, lines 3 to 9, is restating the law and only knocking out the consultation with the committees? Mr. DEININGER. That is right. Mr. DUCANDER. And the reason for that is that the consultation is no longer necessary since this is a line item bill? Mr. DEININGER. That is right, sir. Mr. DUCANDER. Is that clear, Mr. Chairman? |