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million for construction and about $30 million for staffing. With the current request for appropriations, $50 million for construction (1967 funds—two year availability) and $20 million for staffing, we would be able to approve approximately 83 of the requests for construction assistance and 66 of the requests for staffing assistance. Mr. RogFRs. The Chairman has brought out the fact that this committee does not like to use language such as “appropriate such sums as may be necessary,” so that I think we need language and specific figures as I think the Department knows. Now, this contingency account, what precedent is there for setting up a contingency account like this by Federal departments other than for the President 2 Mr. Coh BN. I will ask Mr. Kelly, our Assistant Secretary, and Comptroller of the Department to handle that. Mr. KELLY. Mr. Rogers, there are a large number of provisions throughout the Federal Government that either establish contingency accounts or that establish authority to transfer funds from one appropriation to another. All told, I think we have accounted for about 36 of them. Mr. Rogers. How many contingency funds have complete authority other than just notifying ! Mr. KELLY. The Department of Defense has several contingency funds. One that I am looking at now authorizes the Secretary of Defense to spend an additional $200 million if he determines that such is required in the public interest. There is also a Department of Defense contingency fund which authorizes the Secretary of Defense to transfer research and development funds and to augment them. Mr. Rogers. From his contingency fund? Mr. KELLY. From a separate, additional contingency fund. Mr. RogFRs. Do you suppose those are CIA funds? Mr. KELLY. No, I don't believe so. There is one in the Department of Health, Education, and Welfare and one in the Department of Labor that relates to the contingency of increased workload alone. In the Social Security Administration we are authorized to augment our funds by $25 million in the event that the workload that is received from claimants exceeds that which the budget estimate was based on. Mr. RogFRs. I think it might be good to submit that into evidence. (The information requested follows:)

ExAMPLES OF CONTINGENCY FUNDS AUTHORIZED IN FISCAL YEAR 1967
APPROPRIATION ACTS

1. Funds Appropriated to the President–Economic Assistance: “Contingency fund : For expenses authorized by section 451 (a), $35,000,000.”

2. Department of Defense—Contingencies, Defense: “For emergencies and extraordinary expenses arising in the Department of Defense, to be expended on the approval or authority of the Secretary of Defense and such expenses may be accounted for solely on his certificate that the expenditures were necessary for confidential military purposes: $15,000,000: Provided, That a report of disbursements under this item of appropriation shall be made quarterly to the Appropriations Committees of the Congress.”

3. Department of Labor—Bureau of Fmployment Security, Limitation on Grants to States for Unemployment Compensation and Employment Service Administration: “* * * and of which $12,000,000 shall be available only to the extent necessary to meet increased costs of administration resulting from changes in a State law or increase 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: * * *” 4. Department of Health, Education, and Welfare—Social Security Administration, Limitation on Salaries and Expenses: “* * * Provided further, That $35,000,000 of the foregoing amount shall be apportioned for use pursuant to section 3679 of the Revised Statutes, as amended (31 U.S.C. 665), only to the extent necessary to process workloads not anticipated in the budget estimates and to meet mandatory increases in costs of agencies or organizations with which agreements have been made to participate in the administration of Title XVIII of the Social Security Act, as amended, and after maximum absorption of such costs within the existing limitation has been achieved.” 5. Department of Health, Education, and Welfare—Welfare Administration, Assistance for Repatriated United States Nationals: “* * * of which $40,000 shall be apportioned for use pursuant to section 3679 of the Revised Statutes, as amended (31 U.S.C. 665), only to the extent necessary to provide for requirements not anticipated in the budget estimates.” 6. Legislative Branch—Architect of the Capitol, Contingent Expenses: “To enable the Architect of the Capitol to make surveys and studies and to meet unforeseen expenses in connection with activities under his care, $50,000.” 7. Legislative Branch—Library of Congress, Distribution of Catalog Cards, Salaries and Expenses: “Provided, That $200,000 of this appropriation shall be apportioned for use pursuant to section 3679 of the Revised Statutes, as amended (31 U.S.C. 665), only to the extent necessary to provide for expenses (excluding permanent personal services) for workload increases not anticipated in the budget estimates and which cannot be provided for by normal budgetary adjustments.” 8. Legislative Branch–Government Printing Office, Office of Superintendent of Documents, Salaries and Expenses: “* * * Provided, That $200,000 of this appropriation shall be apportioned for use pursuant to section 3679 of the Revised Statutes, as amended (31 U.S.C. 665), with the approval of the Public Printer, only to the extent necessary to provide for expenses (excluding permanent personal services) for workload increases not anticipated in the budget estimates and which cannot be provided for by normal budgetary adjustments.” 9. Funds Appropriated to the President—Emergency Fund for the President: “For expenses necessary to enable the President, through such officers or agencies of the Government as he may designate, and without regard to such provisions of law regarding the expenditure of Government funds or the compensation and employment of persons in the Government service as he may specify, to provide in his discretion for emergencies affecting the national interest, security, or defense which may arise at home or abroad during the current fiscal year, $1,000,000: Provided, That no part of this appropriation shall be available for allocation to finance a function or project for which function or project a budget estimate of appropriation was transmitted pursuant to law during the Eightyninth Congress or the first session of the Ninetieth Congress, and such appropriation denied after consideration thereof by the Senate or House of Representatives or by the Committee on Appropriations of either body.” 10. Department of Agriculture—Agricultural Stabilization and Conservation Service, Emergency Conservation Measures: “For emergency conservation measures, to be used for the same purposes and subject to the same conditions as funds appropriated under this head in the Third Supplemental Appropriation Act, 1957, to remain available until expended, $5,000,000 with which shall be merged the unexpended balances of funds heretofore appropriated for emergency conservation measures.” 11. Department of Agriculture—Commodity Credit Corporation, Limitation on Administrative Expenses: “* * * Provided further, That not less than 7 per centum of this authorization shall be placed in reserve to be apportioned pursuant to section 3679 of the Revised Statutes, as amended, for use only in such amounts and at such times as may become necessary to carry out program operation : * * *” 12. Department of Agriculture—Rural Electrification Administration, General and Special Funds, Loan Authorizations: “* * * Rural electrification program, $375,000,000 of which $30,000,000 shall be placed in reserve to be borrowed under the same terms and conditions to the extent that such amount is required during the current fiscal year under the then existing conditions for expeditious and orderly development of the rural electrification program ; and rural telephone program, $117,000,00 of which $15,000,000 shall be placed in reserve to be borrowed under the same terms and conditions to the extent that such amount is required during the current fiscal year under the then existing conditions for the expeditious and orderly development of the rural telephone program. 13. Department of Agriculture—Farmers Home Administration, Direct Loan Account: “* * * of which $25,000,000 shall be placed in reserve to be used only to the extent required during the current fiscal year under the then existing conditions for the expeditious and orderly conduct of the loan program.” 14. Department of Agriculture—Forest Service, Forest Protection and Utilization: “* * * of which $5,000,000 for fighting and preventing forest fires and $1,910,000 for insect and disease control shall be apportioned for use, pursuant to section 3679 of the Revised Statutes, as amended, to the extent necessary under the then existing conditions : * * *” 15. Department of Defense—Military Personnel, Operation and Maintenance, Army: “* * * and not to exceed $3,896,000 for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Army, and payments may be made on his certificate of necessity for confidential military purposes, and his determination shall be final and conclusive upon the accounting officers of the Government; * * *” 16. Department of Defense—Operation and Maintenance, Navy: “* * * and not to exceed $10,825,000 for emergency and extraordinary expenses, as authorized by section 7202 of title 10, United States Code, to be expended on the approval and authority of the Secretary and his determination shall be final and conclusive upon the accounting officers of the Government: * * *” 17. Department of Defense—Operation and Maintenance, Air Force: “* * * and not to exceed $3,240,000 for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Air Force, and payments may be made on his certificate of necessity for confidential military purposes, and his determination shall be final and conclusive upon the accounting officers of the Government: * * *” 18. Department of Defense—Operation and Maintenance, Defense Agencies: “* * * and not to exceed $3.754,000 for emergency and extraordinary expenses, to be expended on the approval or authority of the Secretary of Defense for such purposes as he deems appropriate, and his determination thereon shall be final and conclusive upon the accounting officers of the Government: * * *” 19. Department of Defense—Research, Development, Test, and Evaluation, Fmergency Fund, Defense: For transfer by the Secretary of Defense, with the approval of the Bureau of the Budget, to any appropriation for military functions under the Department of Defense available for research, development, test, and evaluation, or procurement or production related thereto, to be merged with and to be available for the same purposes, and for the same time period, as the appropriation to which transferred : $125,000,000 and, in addition, not to exceed $150,000,000, to be used upon determination by the Secretary of Defense that such funds can be wisely, profitably, and practically used in the interest of national defense and to be derived by transfer from such appropriations available to the Department of Defense for obligation during the current fiscal year as the Secretary of Defense may designate: Provided, That any appropriations transferred shall not exceed 7 per centum of the appropriation from which transferred.” 20. Department of Justice—Federal Bureau of Investigation, Salaries and Fxpenses: “* * * and not to exceed $70,000 to meet unforeseen emergencies of a confidential character, to be expended under the direction of the Attorney General. and to be accounted for solely on his certificate: * * *” 21. Atomic Energy Commission—Operating Expenses: “* * * Provided. That of such amount $100,000 may be expended for objects of a confidential nature and in any such case the certificate of the Commission as to the amount of the expenditure and that it is deemed inadvisable to specify the nature thereof shall be deemed a sufficient voucher for the sum therein expressed to have been expanded : * * *” 22. Selective Service System—Salaries and Flxpenses: “* * * Provided. That during the current fiscal year, the President may exempt this appropriation from

the provisions of subsection (c) of section 3679 of the Revised Statutes, as amended, whenever he deems such action to be necessary in the interest of national defense. * * *"

23. Small Business Administration--Salaries and Expenses : "* * * Provided, That 10 per centum of the amount authorized to be transferred from these revolving funds shall be apportioned for use, pursuant to section 3679 of the Revised Statutes, as amended, only in such amounts and at such times as may be necessary to carry out the [business and disaster loan programs).” 24. United States Information Agency-Salaries and Expenses :

** Provided further, That notwithstanding the provisions of section 3679 of the Revised Statutes, as amended (31 U.S.C. 665), the United States Information Agency is authorized, in making contracts for the use of international short-wave radio stations and facilities, to agree on behalf of the United States to indemnify the owners and operators of said radio stations and facilities from such funds as may be hereafter appropriated for the purpose against loss or damage on account of injury to persons or property arising from such use of said radio stations and facilities : * * *"

EXAMPLES OF TRANSFER AUTHORITY AUTHORIZED IN FISCAL YEAR 1967 APPROPRIATION

ACTS 1. Atomic Energy Commission—General Provisions : "Not to exceed 5 per centum of appropriations made available for the current fiscal year for 'Operating expenses' and Plant and capital equipment may be transferred between such appropriations, but neither such appropriation, except as otherwise provided herein shall be increased by more than 5 per centum by any such transfers, and any such transfers shall be reported promptly to the Appropriations Committees of the House and Senate."

2. National Aeronautics and Space Administration--General Provisions: "Not to exceed 5 per centum of any appropriation made available to the National Aeronautics and Space Administration by this Act may be transferred to any other such appropriation."

3. Department of Defense-General Provisions : "During the current fiscal year, the Secretary of Defense may, if he deems it vital to the security of the United States and in the national interest to further improve the readiness of the Armed Forces, including the reserve components, transfer under the authority and terms of the Emergency Fund an additional $200,000,000: Provided, That the transfer authority made available under the terms of the Emergency Fund appropriation contained in this Act is hereby broadened to meet the requirements of this section : Provided further, That the Secretary of Defense shall notify the Appropriations Committees of the Congress promptly of all transfers made pursuant to this authority."

4. Department of Interior-General Provisions: “Appropriations made in this title shall be available for expenditure or transfer (within each bureau or office). with the approval of the Secretary, for the emergency reconstruction, replacement, or repair of aircraft, buildings, utilities, or other facilities or equipment damaged or destroyed by fire, flood, storm, or other unavoidable causes: Provided, That no funds shall be made available under this authority until funds specifically made available to the Department of the Interior for emergencies shall have been exhausted."

“The Secretary may authorize the expenditure or transfer (within each burean or office) of any appropriation in this title, in addition to the amounts included in the budget programs of the several agencies, for the suppression or emergency prevention of forest or range fires on or threatening lards under jurisdiction of the Department of the Interior: Provided, That appropriations made in this title for fire suppression purposes shall be available for the payment of obligations incurred during the preceding fiscal year, and for reimbursement to other Federal agencies for destruction of vehicles, aircraft or other equipment in connection with their use for fire suppression purposes, such reimbursement to be credited to appropriations currently available at the time of receipt thereof."

5. General Services Administration-General Provisions : "Not to exceed 2 per centum of any appropriation made available to the General Services Administration for the current fiscal year by this Act may be transferred to any other such appropriation, but no such appropriation shall be increased thereby more than 2 per centum: Prorided, That such transfers shall apply only to operating expenses, and shall not exceed in the aggregate the amount of $2,000,000.”

6. Veterans Administration-General Provisions : "Not to exceed 5 per centum of any appropriation for the current fiscal year for 'Compensation and pensions', 'Readjustment benefits', and 'Veterans insurance and indemnities' may be transferred to any other of the mentioned appropriations, but not to exceed 10 per centum of the appropriations so augmented.”

7. Department of Agriculture --Agricultural Research Service, Salaries and expenses : "* * * Provided further, That, in addition, in emergencies which threaten the livestock or poultry industries of the country, the Secretary may transfer from other appropriations or funds available to the agencies or corporations of the Department such sums as he may deem necessary, to be available only in such emergencies for the arrest and eradication of foot-and-mouth disease, rinderpest, contagious pleuropneumonia, or other contagious or infectious diseases of animals, or European fowl pest and similar diseases in poultry, and for expenses in accordance with the Act of February 28, 1947, as amended, and any unexpended balances of funds transferred under this head in the next preceding fiscal year shall be merged with such transferred amounts; * * *”

8. Department of Agriculture-Farmers Home Administration, Salaries and expenses : ** Provided, That, in addition, not to exceed $500,000 of the funds available for the various programs administered by this agency may be transferred to this appropriation for temporary field employment pursuant to the second sentence of section 706 (a) of the Organic Act of 1944 (5 U.S.C. 574) to meet unusual or heavy workload increases:

9. Department of Commerce Ocean Shipping, Research and Development: ** * * Provided, That transfers may be made to the appropriation for the current fiscal year for "Salaries and expenses” for administrative expenses (not to exceed $900,000) and any such transfers shall be without regard to the limitation under that appropriation on the amount available for such expenses : Provided further, That transfers may be made from this appropriation to the "Vessel operations revolving fund” for losses resulting from expenses of experimental ship operations.

10. Department of Defense—Research, Development, Test, and Evaluation, Defense Agencies : "* * * Provided, That such amounts as may be determined by the Secretary of Defense to have been made available in other appropriations available to the Department of Defense during the current fiscal year for programs related to advanced research may be transferred to and merged with this appropriation to be available for the same purposes and time period : Provided further, That such amounts of this appropriation as may be determined by the Secretary of the Defense may be transferred to carry out the purposes of advanced research to those appropriations for military functions under the Department of Defense which are being utilized for related programs, to be merged with and to be available for the same time period as the appropriation to which transferred, * * *"

11. Post Office Department: "* * * Provided. That functions financed by the appropriations available to the Post Office Department for the current fiscal year and the amounts appropriated therefor, may be transferred, in addition to the appropriation transfers otherwise authorized in this Act and with the approval of the Bureau of the Budget, between such appropriations to the extent necessary to improve administration and operations : * * *"

12. General Services Administration : "** * Provided further, That the foregoing limits of costs may be exceeded to the extent that savings are effected in other projects, but by not to exceed 10 per centum. * * *"

Mr. ROGERS. My first reaction is negative to this. I am not impressed with the fact of turning it over to the Secretary, particularly when Congress is in session most of the year. There may be a period of 3 or 4 months when we are not.

Supplementals are available. I just don't see much need for contingency frnds as long as we have available the Congress to act on some specific requests.

Mr. COHEN. Could I say a little on that, Mr. Rogers?
Mr. ROGERS. Certainly.

Mr. COUEN. I know vou are a man who can be persuaded by the facts. I would like to take a try at it.

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