USE OF FUNDS Senator PASTORE. Use it immediately beginning when? Mr. HENNING. July 1, in the next fiscal year. As soon as the bill is enacted. Senator PASTORE. What if we do not pass the bill until August 15? Senator SALTONSTALL. I assume they could use it after that. In other words, they would have $55 million more to spend in 1965. Senator PASTORE. But they asked for $411 million. Mr. HENNING. That is right. Senator PASTORE. And if they give you $411 million plus $55 million, we would have a different kind of a picture. But they did not do that. Senator SALTONSTALL. What I am pointing out is that if they do not get the money this year they will have that much more money next year. Mr. HENNING. Hardly that much more, because we will have to take it out of the reduced appropriation, Senator. Senator SALTONSTALL. But the House really reduced your program from $466,000,000 to $327,906,000 a reduction of $138,094,000. Mr. HENNING. You are right. CONTINUING PROGRAM AND NEED Mr. SHEARER. Senator Saltonstall, may I point out that it is a continuing program and a continuing need? And where there is an interruption in the availability of obligational authority for new projects that are developed, this in itself cuts into the program. Or if we defer it and delay it Senator PASTORE. Let us start this way. You are asking for $55 million. You have me down to $42,300,000. Right? Mr. HENNING. $24.3 million for this fiscal year to be obligated immediately. Senator PASTORE. And that is the $42.3 million; but you say you could commit even tomorrow $24.3 million. Mr. HENNING. Yes. And in addition we have the $58.3 million we could commit in programs to be submitted by the States before June 30. We could commit $58.3 million in June, in programs developed by the States, which we have not yet approved. Senator PASTORE. Is Jim Kelly here? Jim, what is the bottom figure here? Mr. KELLY. (James F. Kelly, Office of Comptroller, HEW). I think the point they were making was that they have programs that are ready to proceed; and to start into training totaling $40 millionBut the actual 1964 costs to be incurred would be $24 million. This is primarily with the State vocational education agencies for the conduct of the training program. some. The balance of the expenditure would occur in the next fiscal year for the payment of allowances to the individuals in training, out of the 1965 appropriation. Senator PASTORE. When they get their new money. Mr. KELLY. That is correct. ABSORPTION BY TRANSFER OF FUNDS Mr. BREWER. We are proposing to absorb it primarily by transfer of funds from two of our major activities entirely in the area of personnel compensation. In both agencies, services and welfare institutions, we received sizable increases in staff. The general rate of recruitment, while I think has been good, does result in savings in these areas, so that we are recommending the transfers as set forth in this schedule, $150,000 from agency services-that is our public assistance, child welfare, surplus food, and the Office of Investigations and Collections and $195,000 from District of Columbia welfare institutions, District of Columbia Village, and Junior Village, to a total of $400,000. Senator BYRD. So actually your revised estimates that you gave to the committee in the Senate during its hearings on the fiscal year 1964 appropriation bill were solid estimates? Mr. BREWER. Yes, sir. CASELOAD SITUATION Senator BYRD. Your caseload decline in actuality met the figures that you gave to us when you revised your estimates for fiscal year 1964? Mr. BREWER. We are slightly above that estimate as of this moment. As a matter of fact, the estimate that we gave at the time of our original request was the average caseload of 9,865. Projected through April, May, and June of this year and this is a conservative estimate, we are estimating 10,113 cases. Senator BYRD. So you weren't very far off a year ago when you revised your estimate. Mr. BREWER. No, sir. We are just within a relatively few cases on schedule as projected. ACTIVITIES NOT PENALIZED BY TRANSFER Senator BYRD. Do you think that any transfer of funds from other activities will inhibit or penalize those activities? Mr. BREWER. No, sir; they will not. We have gone over this very carefully, Mr. Chairman. As I indicated, these savings are primarily in personal services, and while as of today we are carrying around 294 vacancies throughout the Department, many of these are in process. We have not in any way had to delay recruiting. Senator BYRD. And you are not penalizing the Office of Investigations and Collections? Mr. BREWER. No, sir; we are not. We are on schedule in that program and will continue to be. There are only, I believe, eight investigation positions vacant today and three of those are in process and they are due to normal turnover. STATUS OF CONVERSION OF INVESTIGATION Senator BYRD. What is the status of your conversion from investigation of 50 percent of the cases at intake to investigating 100 percent? Mr. BREWER. We are approximately 70 percent today, Mr. Chairman, with the general goal of 100 percent on or about the first of the fiscal year. We are gradually making the transition. 32-957-64- -11 Senator BYRD. Thank you, Mr. Brewer. Mr. Tobriner, the subcommittee will certainly give the most careful consideration to your request for the language change. I think we recognize that you are certainly confronted with a difficult problem here. In the event that this language change is not forthcoming, first disregarding for the moment the future of Children's Hospital, or perhaps we cannot disregard it, what would happen insofar as your other hospitals are concerned in their effort to absorb the patients that are presently being taken care of at Children's Hospital? Commissioner TOBRINER. District of Columbia General would have to take a greater share. Not all of the voluntary hospitals are equipped for child care, so that it would involve a substantial load on the few that are. Senator BYRD. Dr. Grant, will you supply for the record the information requested? Dr. GRANT. Yes, sir. Senator BYRD. Thank you very much. Senator BYRD. This is a difficult matter. WAGE SCALE REQUEST REDUCTIONS Mr. HERMAN. We have some further reductions to offer in the wage scale requests that may be made from this House bill. (The information referred to follows:) Source: Department of General Administration, Budget Office, May 15, 1964. COMMITTEE RECESS Senator BYRD. The committee will recess until 8:30 a.m. Thursday. May 21. (Whereupon, at 9:52 a.m. Monday, May 18, 1964, the committee was recessed, to reconvene at 8:30 a.m. Thursday, May 21, 1964.) DEFICIENCY APPROPRIATIONS FOR 1964 THURSDAY, MAY 21, 1964 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met at 8:30 a.m., pursuant to recess, in room 1223, New Senate Office Building, Hon. John O. Pastore presiding. Present: Senators Pastore, Bartlett, and Saltonstall. Also present: Senator Gruening. TREASURY DEPARTMENT OFFICE OF THE SECRETARY STATEMENTS OF A. E. WEATHERBEE, ADMINISTRATIVE ASSISTANT SECRETARY; ERNEST C. BETTS, JR., DIRECTOR, OFFICE OF BUDGET AND FINANCE; AND MISS JANE M. CULLEN, BUDGET OFFICER TOTAL REQUEST Senator PASTORE. Our first item is Treasury. Will the witnesses step forward, please. The first is a request totaling $11,525,000. The House bill provides for a reduction of $325,000, which I understand is not being appealed. We have five items. Will you start explaining your item, Mr. Weatherbee. WAGE BOARD ITEM Mr. WEATHERBEE. I am A. E. Weatherbee, Office of the Secretary. This $29,000 is a wage board item. We received approval from the Bureau of the Budget to spend on a deficiency basis to cover this item. We went before the House committee, our regular committee. They went along with the item, reported it to the floor of the House, and the House approved it. We have tried to absorb the cost, but we found we had $100,000 worth of unbudgeted cost this year. We have absorbed the $71,000, but have not been able to absorb this last $29,000. We are not asking for a new appropriation but for use of unobligated funds that are in the Office of the Treasurer. We have asked for a transfer of authority to use those funds. Senator PASTORE. And the transfer authority is contained in the House bill? Mr. WEATHERBEE. Yes, sir. 161 Senator PASTORE. All right. The next item? BUREAU OF CUSTOMS STATEMENT OF FRANK B. GATCHELL, JR., ASSISTANT DEPUTY COMMISSIONER, DIVISION OF MANAGEMENT AND CONTROLS WAGE BOARD COSTS Mr. GATCHELL. My name is Frank Gatchell, Asistant Deputy Commissioner of Customs. Our item is exactly like that presented by Mr. Weatherbee, in the amount of $115,000, representing wage board costs which were incurred last year. We have absorbed the cost of those which occurred this year, but are unable to do so for those in the amount of $115,000. As in the case of the Office of the Secretary, we are requesting that they be provided for by transfer. Senator PASTORE. What happens if you do not get the $115,000? Mr. GATCHELL. We would be extremely short. We are presently operating with a prospective balance considerably less than $100,000. If we did not get it, we would undoubtedly be in a deficiency position. Senator PASTORE. You mean you would have to let people go? Mr. GATCHELL. It is too late to let people go, Mr. Chairman. If you let people go at this time of the year, the lump-sum payments exceed the amount you saved when they are off the roll. is. Senator PASTORE. I am just trying to dramatize what the situation Mr. GATCHELL. We would actually be in a deficiency position. U.S. COAST GUARD STATEMENTS OF CAPT. PAUL E. TRIMBLE, DEPUTY CHIEF OF STAFF, AND COMDR. WILLIAM BOSWELL, CHIEF, BUDGET AND COST ANALYSIS DIVISION MILITARY PAY INCREASE Captain TRIMBLE. Mr. Chairman, I am Captain Trimble, Deputy Chief of Staff of the Coast Guard. Our items stem from three pieces of legislation passed after our regular appropriation bill was passed; the principal one being the military pay increase, effective the 1st of October. We have absorbed the cost of the other two pieces of legislation, but the military pay increase by and large is an item we cannot absorb. Our funds will run out by next month. We do not have enough to cover our payroll for the month ahead. Our military personnel are under contract. So, again, we cannot just drop them at the last minute. Senator PASTORE. In view of the fact that this is the 21st of May, and by the time you get this, it would be in the early part of June, is there any shaving down of this amount? |