JAMIE L. WHITTEN, Mississippi GEORGE E. SHIPLEY, Illinois FRANK E. EVANS, Colorado DAVID R. OBEY, Wisconsin I:DWARD R. ROYBAL, California GUNN MCKAY, Utah TOM BEVILL, Alabama BILL CHAPPELL, Florida BILL D. BURLISON, Missouri BILL ALEXANDER, Arkansas EDWARD I. KOCH, New York YVONNE BRATHWAITE BURKE, 'California JOHN P. MURTHA, Pennsylvania BOB TRAXLER, Michigan ROBERT B. DUNCAN, Oregon JOSEPH D. EARLY, Massachusetts MAX BAUCUS, Montana CHARLES WILSON, Texas LINDY (MRS. HALE) BOGGS, Louisiana ADAM BENJAMIN, JR., Indiana NORMAN D. DICKS, Washington ELFORD A. CEDERBERG, Michigan J. KENNETH ROBINSON, Virginia CLAIR W. BURGENER, California KEITH F. MAINLAND, Clerk and Staff Director DONNA M. BROTHER STAFF ASSISTANTS WILLIAM A. MARINELLI EDWIN F. POWERS CHARLES W. SNODGRASS HUNTER L. SPILLAN MICHAEL A. STEPHENS PAUL E. THOMSON DEREK J. VANDER SCHAAF SURVEYS AND INVESTIGATIONS C. R. ANDERSON, Chief DAVID A. SCHMIDT, Director JAMES B. HYLAND, Assistant Director NOTE. The Surveys and Investigations supervisory staff is supplemented by selected personnel borrowed on a reimbursable basis for varying lengths of time from various agencies to staff up specific studies and investigations. The current average annual full time personnel equivalent is approximately 65. EVELYN M. BOATHE PAUL V. FARMER ADMINISTRATIVE SUPPORT THURSDAY, FEBRUARY 24, 1977. OFFICE OF THE SECRETARY WITNESSES J. PAUL BOLDUC, ASSISTANT SECRETARY FOR ADMINISTRATION JEROME A. MILES, DIRECTOR OF FINANCE, DEPARTMENT OF AGRICULTURE INTRODUCTORY REMARKS Mr. WHITTEN. Gentlemen, the committee will come to order. We have with us Mr. J. Paul Bolduc, Assistant Secretary for Administration; Mr. Ballard of Economic Management Support. When I first came on the Appropriations Committee, as I recall it, we provided that not to exceed a certain amount of money may be spent in Washington, and so many personnel of which only so many could be in Washington or the Washington area. I took the view when I became chairman that the way to hold people responsible was to give them some degree of flexibility. But then I found out, too, that you have trouble trying to do it that way because the top Department officials, in turn, have the right to assign people here, or to call them here, and let them serve on a per diem basis, even though an agency might need them stationed in Chicago, for example. COMPUTER SYSTEMS A related problem is that we don't always know just what's being spent where. As you know from times past, we have had questions raised about this computer system. I have used this illustration before. When serving on the Defense Appropriations Committee, as I recall, the Navy had a lot of money for computers. I asked them what are they going to use the money for, and they said they hadn't decided yet. I heard one of the top people in the Department of Agriculture saying that if they had a new computer, they could pay the employees in 3 days, where it used to be 2 weeks. I said, "Well, the public is not interested in whether you ever get them paid or not. That's not the best argument to offer to the public." So, once again, we come to the internal operations of the Secretary's office. Of course, we want to see that it's properly run. I have served here at a time when part of the District of Columbia's operation-which my friend Chairman Natcher has straightened up by now-was that if somebody wanted some money, they just took it out and put an IO U back in. Now I'm sure that's straightened up by now. They didn't take it without knowledge; they just took it with knowledge. But all of these things lead us to have some questions about your own operations. You may proceed with your statement. (1) PREPARED STATEMENT Mr. BOLDUC. Thank you very much, Mr. Chaiman. I think it might be well if we divided our discussion into two basic areas: The Office of the Secretary first and then the Departmental Administration. Mr. WHITTEN. Certainly. That will be fine. Mr. BOLDUC. What I would like to do, Mr. Chairman, with your permission, is to insert my statement for the record and just make a couple extemporaneous remarks concerning it in trying to highlight a few points. [The statement follows:] OFFICE OF THE SECRETARY STATEMENT OF J. PAUL BOLDUC. ASSISTANT SECRETARY FOR ADMINISTRATION Mr. Chairman, I am privileged to be here today to discuss with you and the subcommittee the fiscal year 1978 budget for the Office of the Secretary of Agriculture. The Office of the Secretary appropriation provides funding for the immediate Office of the Secretary, the Deputy Secretary, the Assistant Secretaries, the Office of the Administrative Law Judges, and the Judicial Officer. This Office's budget has been reviewed critically and in considerable detail with the intent of maximizing program and policy direction and coordination and minimizing costs. During the past year, the major emphasis within the Office of the Secretary has been to substantially upgrade the quality of administration and services provided for the agencies while reducing the costs wherever possible. Concern was expressed by the committee last year regarding the level of communication and cooperation between this Office and the agencies which are responsible for executing the programs of USDA. We have made a conscientious effort to include the program agencies in the management and decisionmaking process through the utilization of the Management Council and by actively seeking the opinions of agency administrators on matters concerning their operations. We continue our efforts to promote a close, day-to-day relationship with them. FISCAL YEAR 1978 BUDGET REQUEST The fiscal year 1978 budget request for the Office of the Secretary totals $2,496,000 which is an increase of $159,000 over the current estimate for fiscal year 1977. All of this increase is to meet rising costs and does not contemplate any expansion of activities covered by this appropriation. The increase includes: $85,000 for space rental costs pursuant to Public Law 92-313. The fiscal year 1978 budget estimates for space is based on the new fair annual rental rate structure and includes full funding for rental payments in the budget year. $57,000 for increased operating costs. Expenditures for essential services in the Office of the Secretary continue to increase substantially each fiscal year and are largely uncontrollable in nature. These costs are distributed as follows: $22,000 for postage costs, $18,000 for telecommunications costs which are rising at an estimated 10 percent a year, and $17,000 for increased travel to finance increased costs attributable to the revised per diem rates and other travel allowances authorized by Public Law 94-22. $17,000 for central services provided under the working capital fund. In rrior years agencies have had to absorb increased costs of centralized services provided under the working capital fund. This year, agencies were informed of these increased costs prior to submission of the budget so that they would have an opportunity to request these increases where it was determined that they could not be absorbed under existing funds. Mr. Chairman, that concludes my statement. I will be glad to answer any questions the committee may have. Mr. WHITTEN. Proceed. |