The subcommittee met at 10:20 a.m., in room 1114, Everett McKinley Dirksen Office Building, Hon. Joseph M. Montoya (chairman) presiding. Present: Senators Montoya, Chiles, Hatfield, and Young. GENERAL SERVICES ADMINISTRATION EXPENSES, PRESIDENTIAL TRANSITION ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS STATEMENT OF ARTHUR F. SAMPSON, ADMINISTRATOR ACCOMPANIED BY: G. C. GARDNER, JR., ASSISTANT ADMINISTRATOR FOR ADMIN- HAROLD S. TRIMMER, JR., GENERAL COUNSEL J. F. GALUARDI, DEPUTY COMMISSIONER, PUBLIC BUILDINGS BUDGET REQUEST Senator MONTOYA. The subcommittee will be in order. This morning the subcommittee has before it the request of President Ford for supplemental appropriations in the aggregate amount of $850,000 for the transition expenses and other allowances for former President Nixon. This request was transmitted to the Congress on August 29, 1974, and without objection, President Ford's letter to the Speaker of the House of that date will be inserted in the hearing record at this point. [The letter follows:] (1) I ask the Congress to consider proposed supplemental appropriations for the fiscal year 1975 in the amount of $850,000 for Presidential transition expenses and allowances for former Presidents. The details of this proposal are set forth in the enclosed letter from the Director of the Office of Management and Budget, with whose comments and observations I concur. Respectfully, Gerald R. Ford I have the honor to submit for your consideration proposed supplemental appropriations for the fiscal year 1975, in the amount of $850,000 as follows: GENERAL SERVICES ADMINISTRATION Expenses Presidential Transition For expenses necessary to carry out the provision of the Presidential Transition Act of 1963 (3 U.S.C. 102 note), $450,000, to be available from August 9, 1974, and to remain available until June 30, 1975. This proposed supplemental appropriation will provide funds for former President Nixon to promote an orderly transfer of executive power as authorized by the Presidential Transition Act of 1963 (3 U.S.C. 102 note). Allowances and Office Staff for Former Presidents For an additional amount for "Allowances and Office Staff for Former Presidents", $400,000. This proposed supplemental appropriation will cover fiscal year 1975 costs for pension, office staff, and related expenses for former President Nixon as authorized by the Former Presidents Act of 1958 (3 U.S.C. 102 note). I have carefully reviewed the proposals for appropriations contained in this document and am satisfied that these requests are necessary at this time. I recommend, therefore, that these proposals be transmitted to the Congress. SUPPLEMENTAL REQUEST Senator MONTOYA. The supplemental appropriation requested is divided as follows: $450,000 for expenses covered under the Presidential Transition Act of 1963 and $400,000 for allowances and office staff under the Former Presidents Act of 1958. I am pleased to see that the press is present and will report on these hearings. The American people are deeply concerned about the matter before us today. My own office has received thousands of letters and telegrams about this request, and in almost every letter there is an expression of outrage at the excessive cost represented by this request. The American people are not cruel or vindictive. The letters I have received do not indicate a desire to make the difficulties of the former President any greater or to cut off the normal and expected pension and office staff allowances given to other former Presidents. Certainly this committee wishes to make adequate provision for the transition of the office of the President as required by law. However, the money requested here is unprecedented in amount. The situation under which it is requested is also unprecedented. There are legitimate questions which must be raised concerning both the size of the request and the specific items for which the appropriation would be spent. Our responsibility is to the people of the United States. It is their money we are spending. They are entitled to assurance that we are fully sensible of our responsibilities in this matter. The American people have been asked by President Ford to tighten belts in order to fight inflation. That belt-tightening must certainly be across the board. President Ford has asked that Federal employees accept a delay in even the minimum cost-of-living raise due this month. Yet at the same time this committee is asked to approve funding under the Former Presidents Act which is 100 percent higher than the moneys given President Johnson in 1972 less than 2 years ago, in addition to the full authorization of $450,000 under the Presidential Transition Act. TRANSITION FUNDING The Presidential Transition Act of 1963 authorizes appropriations "not to exceed $900,000 for any one presidential transition." The practice established at the election of 1968 was to divide this appropriation between the incoming and outgoing administrations. The committee is advised that no additional funds are being sought in connection with the assumption of the presidency by President Ford and that this request in its entirety is to assist the transition of Richard M. Nixon from the White House to private life. However, in regard to this act, we have only the example of one former President to consider, President Johnson. At the time of leaving office, President Johnson asked for only $375,000 of the $450,000 appropriated, and asked that it be used for the first 18 months of his retirement. It is significant to note that he did not request, nor did he use, any part of his office personnel allowance under the Former Presidents Act for this 18-month period. He accepted only that por |