So that we are trying to get more time applied to the individual older worker as he comes into the local office. I would say this, although the results of this effort have not been sensational in terms of increases in the number of placements, there are two or three important points: One is that we have improved a little bit in the percentage of older workers placed as it is related to the total placed in the last 2 years. In other words, the percentage of older workers that are being placed now compared to the total is a little better than it was a couple of years ago. So we are making some progress. Most of this improvement came in 1958, as I recall, but even in 1959, with some of the recessionary influences we had last year, it still held its own. So we are making some progress. Now, this, I think, covers the principal points on salaries and expenses. If you have any questions on that perhaps you might want to ask them now. Senator HILL. Are there any questions on this "Salaries and expenses," Senator Byrd? Senator BYRD. I believe not. Senator HILL. You will be not hiring any more people? Mr. GOODWIN. That is right. Senator HILL. These are what you call automatic increases, due largely to acts of Congress and your effort to improve better hiring for your older people, things of that sort? Mr. GOODWIN. Yes; that is right. Senator BYRD. I have no questions, Mr. Chairman. GRANTS TO STATES APPROPRIATION ESTIMATE "For grants in accordance with the provisions of the Act of June 6, 1933, as amended (29 U.S.C. 49-49n), for carrying into effect section 602 of the Servicemen's Readjustment Act of 1944, for grants to the States as authorized in title III of the Social Security Act, as amended (42 U.S.C. 501-503), including, upon the request of any State, the purchase of equipment, and the payment of rental for space made available to such State in lieu of grants for such purpose, for necessary expenses including purchasing and installing of air-conditioning equipment in connection with the operation of employment office facilities and services in the District of Columbia, and for the acquisition of a building through such arrangements as may be required to provide quarters for such offices and facilities in the District of Columbia and for the District of Columbia Unemployment Compensation Board, subject to the same conditions with respect to the use of these funds for such purposes as are applicable to the procurement of buildings for other State employment security agencies, and for expenses not otherwise provided for, necessary for carrying out title IV of the Veterans' Readjustment Assistance Act of 1952 (66 Stat. 684) and title XV of the Social Security Act, as amended (68 Stat. 1130), [$305,000,000] $328,684,000, of which [$10,000,000 $15,000,000 shall be available only to the extent necessary to meet increased costs of administration resulting from changes in a State law or increases in the numbers of claims filed and claims paid or increased salary costs resulting from changes in State salary compensation plans embracing employees of the State generally over those upon which the State's basic grant (or the allocation for the District of Columbia) was based, which increased costs of administration cannot be provided for by normal budgetary adjustments: Provided, That notwithstanding any provision to the contrary in section 302 (a) of the Social Security Act, as amended, the Secretary of Labor shall from time to time certify to the Secretary of the Treasury for payment to each State found to be in compliance with the requirements of the Act of June 6, 1933, and, except in the case of Puerto Rico, Guam, and the Virgin Islands, with the provisions of section 303 of the Social Security Act, as amended, such amounts as he determines to be necessary for the proper and efficient administration of its unemployment compensation law and of its public employment offices: Provided further, That such amounts as may be agreed upon by the Department of Labor and the Post Office Department shall be used for the payment, in such manner as said parties may jointly determine, of postage for the transmission of official mail matter in connection with the administration of unemployment compensation systems and employment services by States receiving grants herefrom. "In carrying out the provisions of said Act of June 6, 1933, the provisions of sections 303 (a)(1) of the Social Security Act, as amended, relating to the establishment and maintenance of personnel standards on the merit basis, shall apply. "None of the funds appropriated by this title to the Bureau of Employment Security for grants-in-aid of State agencies to cover, in whole or in part, the cost of operation of said agencies including the salaries and expenses of officers and employees of said agencies, shall be withheld from the said agencies of any States which have established by legislative enactment and have in operation a merit system and classification and compensation plan covering the selection, tenure in office, and compensation of their employees, because of any disapproval of their personnel or the manner of their selection by the agencies of the said States, or the rates of pay of said officers or employees. Grants to States, next succeeding fiscal year: For making, after May 31 of the current fiscal year, payments to States under title III of the Social Security Act, as amended, and under the Act of June 6, 1933, as amended for the first quarter of the next succeeding fiscal year, such sums as may be necessary, the obligations incurred and the expenditures made thereunder for payments under such title and under such Act of June 6, 1933, to be charged to the appropriation therefor for that fiscal year. [For an additional amount for "Grants to States for unemployment compensation and employment service administration", $20,600,000, of which $14,200,000 shall be available only to the extent necessary to meet increased costs of administration resulting from changes in a State law or increases in the number of claims filed and claims paid or increased salary costs resulting from changes in State salary compensation plans embracing employees of the State generally over those upon which the State's basic grant (or the allocation for the District of Columbia) was based, which increased costs of administration cannot be provided for by normal budgetary adjustments.] 1. Increase in the average State salary rate from $4,279 in 1959 to $4,425 in 1960.__. The salaries are for State employees and the increase is mandatory because the salary rates are prescribed under State compensation plans which meet Federal standards. The increase is based on experience in 1958 and prior years. Half the increase ($73 per employee) is for within-grade salary increments which are mandatory after prescribed periods of satisfactory service. The other half of the increase is for the cost of State compensation plan changes to be made in 1959. In 1959 these changes can be financed out of the contingency fund; in 1960 they become a mandatory salary cost item and are part of the regular budget request. The latest rate reported by the States was $4,268 for November 1958. 2. Workload increases due to growth in program coverage__ As a result of growth in program coverage workloads will increase in the tax collection and wage record functions. The increases in the number of employer status determinations (48,000), employer accounts (294,000), field audits (4,000), and collections and refunds are due to the growth in the number of covered employers. The increase in the number of wage records (2,975,000) is due to a rise in the number of covered workers. 3. Workload increase due to higher number of benefit payments___ The increase in the overpayment and fraud function is for prevention and detection of improper benefit payments and is related to the high number of benefit payments in 1958 and 1959. In 1958 there were 38,000,000, or 70 percent, more benefit payments than in 1957, and in 1959 they are expected to continue at this high level. The increase in overpayment and fraud work lags behind the increase in benefit payments. +8,285,000 1 +1,724,800 +723, 500 4. Workload increase in the Federal unemployment compensation programs due to higher benefit payments__ The cost of administration of these programs is related to the amount of benefit payments: $70,000,000 in 1960 for ex-servicemen; $57,000,000 for Federal employees; and $8,000,000 for Korean veterans. The cost of the ex-servicemen program increases while the other two decrease. In 1959 a part of the funds needed for the ex-servicemen program has been transferred from the other two programs; the remainder will be derived from the contingency fund. 5. Higher cost of rent of premises__- The increase is based on experience and is due mainly to the higher cost of office space. 6. Increase due to equipment obsolescence... +$458, 700 +1, 234, 000 +700,000 Re The increase is for replacing obsolete equipment. Approximately 3 percent of the equipment would be replaced. placement of obsolete equipment is being deferred in 1959. PROGRAM INCREASE ITEM 7. Increase in cost due to greater normality in operations__ PROGRAM DECREASE ITEMS 8. Workload changes due to improved economic outlook..... The workload decreases in initial claims taking (271,000), continued claims taking (2,373,000), monetary determinations (365,000), benefit payments (3,575,000), new applications (600,000), and experience rating are related to the drop in average weekly insured unemployment from 2,204,000 in 1959 to 2,100,000 in 1960. Nonmonetary determinations (95,000), and benefit appeals (14,000) are expected to increase because the number of contested claims usually goes up when job opportunities become more plentiful. Because of high unemployment the number of contested claims was disproportionately low in 1958, and is expected to continue at this level in 1959. 9. Decrease in the contingency fund__ The size of the contingency fund has been reduced because less unemployment is expected in 1960. Net change_-_. +2, 165, 000 -3,007, 000 -9, 200, 000 +3,084, 000 Grants to States for unemployment compensation and employment service administration-Budget allotments, fiscal years 1957, 1958, and estimates for fiscal years 1959 and 1960 Maine Maryland. Massachusetts. Michigan 4,002.840 1, 176, 591 2. 081.772 4,047,905 4, 263. 416 3, 402. 064 2,397, 240 5,613, 666 4,331, 682 36,908 918, 272 1,779, 687 13.434.851 5 335.221 2,641,661 2,346.566 3,666, 841 3,576, 482 2 $328,684,000 4,377, 185 1.322, 840 3.492.848 3.334, 280 33.781.031 3,019.117 4,936, 200 787,623 2. 461, 210 5,763, 467 4,447, 273 37.893 942, 776 1,827, 178 13,793, 360 5 477.591 2,712, 154 2,499, 184 3,764, 691 3,671.921 1,303, 820 4,399,363 10.053, 053 12,778, 195 3.358.580 2,487, 563 4. 491, 972 1,257, 614 1, 175, 877 875.459 1,024, 160 10. 558 805 1,486, 858 36, 122, 487 4, 545, 852 902,076 10, 231, 259 2,864, 987 3, 199, 451 19,871, 080 979, 905 2, 007, 910 2,786, 233 666,306 3, 786, 696 9,974, 556 1,880, 201 822,155 2, 352, 973 47,371 4,998,933 1,969, 181 11. 421, 120 13, 753, 631 720, 760 155 49,395 11.530 006 3, 234, 023 $56, 480 4,056, 278 11.933, 958 2,320,770 999, 148 2,875 583 76,978 5,756, 578 2, 437, 482 4,484, 665 851, 206 305, 470, 903 1,649 334 4,891.396 11,837,685 16, 151 492 4,669 653 3.425.302 5,439 915 1,648,009 1,407,818 1, 174.342 1,355,409 12, 889, 744 1,766,962 45. 400, 513 5,879, 466 1,152,023 14, 214, 276 3,824,658 3,819, 381 23,851, 160 1, 100, 532 2,766, 078 3, 320, 323 879,335 4, 164, 520 12, 252, 416 2,382,700 1,025, 810 2,952, 318 79,032 5,910, 192 2,502,526 4,604, 338 873,920 313, 622, 400 15, 000, 000 100 61,500 210 32,087 249,818, 166 32, 160, 231 251,978, 397 1 Includes reallotment of unencumbered funds in State agencies from prior year: 1957, $1,909 734; 1958, $2,412,294; 1959, $4.130.903. Includes reimbursement of $68,663 in fiscal year 1957. Postage prorated. * Estimate based on fiscal year 1959 estimated allocations. * Includes $2,000,000 contingency fund and $160,231 unobligated funds. |