Dr. RIVLIN. Another $700,000. It makes about $1 million all together. The reason those numbers are low is that we did start hiring slowly. I carefully hired the senior people first, and our rapid hiring of more junior people has been only within the last couple of months. [NOTE. See p. 136 for schedule of expenditures from contingency fund of the Senate.]

ESTIMATED EXPENDITURES DURING REMAINDER OF 1976

Mr. CASEY. Based on that, do you expect another $9 million to last through fiscal 1976?

Dr. RIVLIN. We are asking for $10 million through the end of the transition quarter, yes.

Mr. CASEY. $10 million in addition to the $1 million that you have already spent?

Dr. RIVLIN. Yes.

What we have already spent comes out of the Senate contingency fund.

ESTIMATED FISCAL YEAR 1977 REQUEST

Mr. CASEY. I understand that. The next fiscal year you will be asking for what, about $11 million?

Dr. RIVLIN. I think somewhat less. It will be about the same personnel costs and somewhat less on the equipment and other startup

costs.

BASIS FOR ESTABLISHING GRADE LEVELS OF POSITIONS

Mr. CASEY. What is your basis for establishing the grade levels? You have, on page 43 of the justifications, a listing showing 25 positions to receive annual salaries of $35,938. There are 47 to receive $25,600 to $36,000, and so forth.

Dr. RIVLIN. That is right. Like any legislative agency, we were not bound by the civil service structure and we had to establish one, subject only to the salary ceiling. We established a structure that seemed to us right for doing the job with a fairly simple categorization of the kinds of people we wanted, ranging from assistant directors of these various divisions through what we call principal analysts who do the analytical work down to junior people and clerical support.

We established a structure for that which was relatively comparable to, say, the Office of Management and Budget. In fact, our average salary is slightly lower than theirs. We have made that computation. We were not aiming at anything in particular, but it turned out that

way.

STUDIES PREPARED OR UNDERWAY

Mr. CASEY. Have you made any studies to date or do you have some underway?

Dr. RIVLIN. Yes.

Mr. CASEY. Would you furnish a list of those for the record? You might tell us briefly what they are.

Dr. RIVLIN. I am sorry I did not bring a copy, but we can get them

to you.

[The listing referred to follows:]

We have done a number of different kinds of studies which are a kind of foretaste of what we will be doing.

REPORT ON THE STATE OF THE ECONOMY

The one which I think has gotten the most publicity was a report on the state of the economy, dated September 17 and called "Recovery, How Fast and How Far." This study examined what seemed to be happening to the economy and made estimates of what would be the effect of a larger tax cut or a noncontinuance of the tax cut, higher expenditures, lower expenditures. This was prepared primarily for the use of the Budget Committees as they go into markup right now. Mr. CASEY. Did they request it?

Dr. RIVLIN. Yes, the Senate Budget Committee actually formally requested it. It is not our view that it has to be requested. I think we would have done this anyway. The law makes clear that we are to do this kind of thing.

Mr. GIAIMO. Would you yield right there in response to this matter? Mr. Chairman, I think it is important to point out so that we get a proper perspective here, that this is not like many other staffs or agencies of the Congress. This Congressional Budget Office works very closely with the Senate and House Budget Committees. As you know, I am on the House Budget Committee. Let's just take that report on the state of the economy. Our Budget Committee is meeting this very morning to mark up the second concurrent resolution which will be our estimate of what the fiscal year 1976 deficit should be; the total expenditure amount and the income amount. This resolution will be coming to the House, I believe, on the 6th or 10th of November; isn't that right?

Dr. RIVLIN. Right.

Mr. GIAIMO. Now these are continuing meetings. Our House Budget Committee staff is constantly working on these figures and they are depending on the CBO for basic supplemental assistance in many of these areas, one of which is this "guesstimate" or estimate of what we think is happening in the economy. So it is a very real function. I have seen studies made around the Congress that get piled up on a shelf and nobody reads them. But that is not the case here. I can tell you that almost every Member of the House Committee has read the CBO report that came out in September.

Mr. CEDERBERG. Would you yield?

Mr. GIAIMO. Yes.

Mr. CEDERBERG. What does this report say the House Budget Committee should do in the second concurrent resolution?

Dr. RIVLIN. It does not say what it should do.

Mr. CEDERBERG. Do you recommend?

Dr. RIVLIN. No. The Congressional Budget Office does not make recommendations on policy. It does show what it thinks the effects of alternative policies would be.

Mr. CEDERBERG. What does it think the committee should do?

Dr. RIVLIN. I don't have an answer to that, Mr. Cederberg. We simply don't. That is not our job.

Mr. CEDERBERG. The report here indicates that we ought to be spending substantially more.