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Thus, a deficit of 212,870 permanent spaces still remain to be authorized, funded, and constructed.

The new authorization request contains $25,359,000 for EM barracks. We are asking for $21,841,000 for 10,768 permanent spaces, and $1,971,000 for 2,609 semipermanent and temporary spaces at our surface-to-air guided missile training range at McGregor Range, Tex., and at Camp Desert Rock, Nev., respectively.

The permanent long-range Army requirement for bachelor officers' quarters is 13,400 spaces. A deficit of 5,513 spaces now exists. The presently proposed authorization program contains a request for $4,225,000.

Of this, $3,233,000 for 372 spaces is for permanent construction, and $992,000 for 652 spaces is for semipermanent or temporary construction at McGregor Range, Tex., and Camp Desert Rock, Nev.

With reference to family housing, we had a worldwide shortage of 68,000 family units at the beginning of this fiscal year. The fiscal year 1958 program should reduce the shortage of 53,000 units in the United States and possessions by 11,000. The bulk of the remaining deficit can be met by title VIIŤ (Capehart housing) if the flow of mortgage funds to finance construction is forthcoming.

Progress to date has been slow because of the inability of successful bidders on construction contracts to secure long-term finance at the interest rates stipulated by law.

The recent increase in allowable interest rates for Capehart mortgages should help this situation. In order to accomplish the entire program, the title VIII housing laws must be extended.

The 15,000 housing unit deficit in overseas areas can be met through the use of local currencies arising from the sale of surplus commodities, if suitable arrangements can be made with the governments involved.

We are requesting authorization for 11,447 units of Capehart housing and 934 units of surplus commodity-type housing. The program does not contain any new dollar authorization for appropriated fund housing; 158 units of appropriated fund housing are contained in title I, and they are to be reprogramed from prior year's authorization.

The eighth category covers all utilities and ground improvements. This comprises such projects as electric utilities, heating plants, sanitary sewer systems and water supply systems. This category totals $4,350,000; $2,872,000 for CONUS and $1,478,000 overseas.

The last category is real estate. Land acquisition in the Army's fiscal year 1959 program has been held to the minimum. Aside from land required for Air Defense missile installations, there are only three land acquisition projects. Two projects for a total of 537.3 acres at a cost of approximately $498,000 are in CONUS, and one project of 13.6 acres at a cost of $7,000 is in Alaska.

It is important that the committee be provided a picture of the overall status of Army construction authorization and appropriations.

Accordingly, we have brought with us the summary chart shown to the committee last year, now extended to include an additional

fiscal year.

MILLION DOLLARS 5000

3720.8

3698.9 35916

3432.6

2334.0

3250.6

3261.2

31476

1040,0

2900

3000

2898 2

2848.7 AUTHORIZATIONS 2714.0

2576.5

25602

2000

2000

MILITARY CONSTRUCTION, ARMY, PROGRAM

MILLION DOLLARS

5000

4096.5

4000

4000

3888.5

37713

3000

200921

2846.0

2376.0

"APPROPRIATIONS

23612

2327.1

OBLIGATIONS

1741.6

EXPENDITURES

1000

1000

884.2

741.6

ACTUAL

FORECAST

1955

1951 1952 1963 1954

1956 1957 1958 1959 IFY 52-**-FY53-4FY 54-|FY 55 TFY 56-4FY 57-FY58-FY 59

This chart reflects the cumulative totals of authorization, appropriations, obligations, and expenditures. It also includes the estimated projections through the coming fiscal year.

Fiscal year 1959 will be the 11th year since the postwar return to specific authorization of the construction projects.

The green line at the top of the chart reflects the authorization granted in 13 acts of Congress-omitting minor amending legislation-between Public Law 626 of the 80th Congress and Public Law 85–241 of the 85th Congress, the authorization rescinded by previous acts, and that for rescission in the bill now under consideration by this committee.

The rescission shown as effective in August 1953 was accomplished by specific projects designated in title VI of Public Law 209, 83d Congress.

That shown on June 30, 1956, and June 30, 1957, is the result of general rescission action on unused authorization.

The effect of rescissions contained in section 507 of the general provisions of the bill now before you

is indicated in part by the drop in the dotted green line as it will affect available authorizations at the close of fiscal year 1959.

I might state, Mr. Chairman, that the situation at the end of fiscal year 1959 will be a figure of $215 million, which will be our total unfunded authorization, which as you know, sir, is a considerable decrease from the $363 million that we ended fiscal year 1958 with.

At the close of fiscal year 1958, the total authorizations granted, less rescissions, will be $3,720.8 million, including authorization used to date. Approval of title I of the bill before you will result in a new total at the beginning of fiscal year 1959 of $4,056.5 million.

The black lines shows similar history of MCA appropriations, Through fiscal year 1958, $3,358.0 million have been appropriated in 12 acts of Congress, including $34 million in fiscal year 1955 actually appropriated to the Secretary of Defense and used by the Army for family housing

The Army is requesting $340,900,000 in MCA appropriations for fiscal year 1959, which will bring the total to $3,698.9 million. We would

then have an unfunded net authorization of $189.6 million after fiscal year 1959 rescissions. : If we add the $25 million, Mr. Chairman, to that figure that constitutes the general authorization for unforeseen requirements, which I will describe in detail later, that would bring the figure to the $215 million that I gave the chairman previously.

The red and blue curves show cumulative obligations and expenditures, respectively.

At the beginning of fiscal year 1959, it is estimated that a total of $3,250.6 million will have been obligated, and, of that amount, $2,898.2 million will have been expended.

It is estimated that $341.0 million fill be obligated during fiscal year 1959, which will result in an unobligated carryover into fiscal year 1960 of $107.3 million.

As has been demonstrated to the committee in previous years, a carryover of even greater than this magnitude is necessary, both to cover Government costs and contingencies for work already under

way, and to allow new starts during July, August, and September prior to the availability of new money appropriated for the new fiscal year. We are continuing to use the authority granted us by Congress to strengthen our forward planning. Installation master plans and long-range construction programs are under continuing refinement. In the field of advance design, improvements in recent years are .# extended. Practically all of the projects in the program before you have been designed to the preliminary stage, and we are now pro: ceeding with final design on many of the projects for contract award commencing as early as possible in fiscal year 1959. The estimates of cost, based on these preliminary plans, are as accurate as prebid estimates may reasonably be expected. There are three other items of legislation in title I of the bill which I would like to touch briefly upon now, and cover in greater detail later on during the hearing. The first item is section 102, which will enable the Secretary of the Army to establish or develop classified military installations and facilities. The total amount requested is $201,121,000, of which $128,468,000 is in CONUS and $72,653,000 overseas. The construction support provided by authorizations in this section concerns the tactical and strategic requirements of surface-toair and surface-to-surface guided missile deployments, classified re; search and development needs, and sensitive communication and security needs. - - The second of these is section 103. This section will permit the Secretary of the Army to establish or develop Army installations and facilities by proceeding with construction made necessary by changes in Army missions, new weapons developments, new and unforeseen research and development requirements, or improved production schedules. This authority will be used only if the Secretary of Defense determines that deferral of such construction for inclusion in the next military construction authorization act would be detrimental to the interests of our national security. The total amount of authorization being requested under this section is $25 million. The next is section 104. In this section we are requesting authorization for construction of non-MCA housing at specific locations. Because of the fact that this housing will be constructed under the surplus commodity and the Capehart programs, no money amounts are involved. The proposed program in title I is contained in three books. One book is a condensed version of the program including station summaries and lists of projects, with their scope and cost, to be built at each installation. The other two books contain the detailed justification sheets for each individual line item in the program. Copies of these books have been furnished for each committee member. Mr. Chairman, that concludes my statement, and I thank you, sir, for the opportunity. The CHAIRMAN. Thank you very much, General. Your statement, like the one submitted by the Secretary, is very constructive and beneficial to the committee. Now, just a few questions from me.

Now, let's take the housing. There is in this bill, then, authority to build 11,447 Capehart houses, is that correct?

General SHULER. Yes, sir, that is correct.

The CHAIRMAN. Now, under the law passed last year, they had to be line items, did they not! The line items are in the bițl where these houses are to be built? General SHULER. That is right, sir.

The CHAIRMAN. Now, in addition to that, we will build 934 units overseas?

General SHULER. That is right.
The CHAIRMAN. Out of commodity funds.

Now, in addition to that, we will build 158 units that has been authorized as direct appropriated construction.

General SHULER. That is right, sir.

The CHAIRMAN. Some 30,000 is the authorization, and we are only going to use 158 of them as far as the Army is concerned.

Now, those are all the questions I desire to ask you right at this point.

Mr. Gavin, any questions?
Mr. GAVIN. I haven't.
The CHAIRMAN. Mr. Rivers, have you any questions?
Mr. RIVERS. No.

The CHAIRMAN. Members, instead of going around the committee, any member of the committee any questions to ask the general on his general statement?

Mr. BATES. Mr. Chairman-
The CHAIRMAN. Mr. Bates is recognized.

Mr. BATES. General, I was trying for the last couple of days to try to determine who coordinates all these various programs. Now, you have works; you have missiles coming off the line.

Now, who actually does the coordination of these various programs?

General SHULER. You are talking about in the Army, sir? Mr. BATES. Yes. General SHULER. Mr. Bates, this particular program starts in the planning stage about 2 years before now.

Mr. BATES. Just to save time. After all the money has been appropriated and you have been given the green light to proceed.

Now, in the event a missile is going to be delayed, or you are going to be delayed, who coordinates all of that planning!

General SHULER. Sir, as I understand it, you are now talking about the execution side of the program and not the planning side?

(Mr. Bates nods.)

General SHULER. All of our construction is based on the same plans as the people who procure equipment and the people who train the people to use the equipment and who will occupy this construction.

Now, theoretically, this is put together so that it all comes out at the same time. It doesn't always work that way, because as you say there are delays sometime in production, there are delays in construction, and there are delays in training.

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