Mr. Chairman, I hope that my remarks will help set a useful framework for the committee's detailed examination of our fiscal year 1974 authorization proposals. I believe that we have done a responsible job in putting together a Space and Aeronautics program the Nation can, and should, continue to support. We will make every effort to continue to deserve that support. Thank you, Mr. Chairman. The CHAIRMAN. Thank you, Dr. Fletcher, for that overview of the budget requests that are made of the Congress this year. Without objection I will include at this point a number of documents dated October 10, 1972, January 5, 1973, and February 16, 1973, to clarify NASA's fiscal year 1973 program. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, Hon. CLINTON P. ANDERSON Chairman, Committee on Aeronautical and Space Sciences, U.S. Senate, DEAR MR. CHAIRMAN: NASA has established an operating budget for FY 1973, which formed the basis for NASA's request for apportionment of funds from the Office of Management and Budget (OMB). The OMB has approved our request with adjustments that I will discuss below. As shown in the enclosed table, which summarizes the FY 1973 operating budget by line item, the budget totals $3,407,650,000 in New Obligational Authority, the same as recommended by the President and appropriated by the Congress. The FY 1973 operating budget is based on carrying out the President's Budget as approved by Congress in the FY 1973 authorization and appropriation acts, with certain adjustments necessitated by program considerations which have arisen subsequent to submission of the budget. The principal adjustments incorporated in the FY 1973 operating budget are: (1) The provision of $30 million additional in the amount requested and authorized for Launch Vehicle Procurement to deal with reliability and other problems with the Delta and Centaur launch vehicles not foreseen in the FY 1973 budget. (2) The provision of $12 million additional for Aeronautical research in the field of noise abatement. (3) A reduction of $42 million from the amount budgeted for Apollo made possible by the lower cost experienced for Apollo since the preparation of the FY 1973 budget estimates and the absence of serious problems in connection with Apollo 17. (4) The provision of $38.5 million to meet the revised estimate of FY 1973 requirements for the Apollo-Soyuz Test Project. This is an increase of $8.4 million over the amount we reported in June 23, 1972, that we were providing through adjustments in FY 1973 Skylab funding. (5) The shifting of $10.8 million from Tracking and Data Acquisition to the Lunar and Planetary program to reflect the transfer of certain planetary flight support functions to the Office of Space Science. We have also made a number of minor adjustments at the project level within the various budget line items shown on the enclosure and we have discussed these with the staff of the Committee. In establishing the operating budget we were not able to provide the full amount authorized in Applications and in Aeronautics. This was due to the stringent fiscal constraints we faced because of the unforeseen requirements in the Launch Vehicles programs. We were able, as I have noted, to project a $12 million increase in Aeronautics within appropriations at the level of the President's FY 1973 request. In its actions on the FY 1973 appropriations request, OMB approved the full amounts for Construction of Facilities and Research and Program Management. For Research and Development, the apportionment request was approved except for the following: (1) of the $21 million requested for the JT3D/JT8D Aircraft Engine Quieting Program, $5.6 million was apportioned on the basis that more work must be done to define the total program and to determine its economic benefits. The apportionment of $5.6 million is to allow the completion of Phase I of the program which will specify final designs and improve cost estimates on the Engine Quieting Program. Until the results of Phase I and satisfactory economic analyses with the Department of Transportation are available, the OMB will hold the $15.4 million in reserve. (2) The full amount requested for the Quiet Experimental STOL Transport Research Airplane and the STOL Experimental Engine, $29.5 million, was placed in reserve pending the development of a coordinated program with the Air Force and completion of the economic analyses. (3) The full amount of $5.8 million requested for TIROS-N Meteorological Satellites was placed in reserve pending completion of a review of requirements by the National Oceanic and Atmospheric Administration which was requested by OMB. We are in discussions with OMB regarding these matters, and it is possible that final decisions will be made in the context of the FY 1974 budget discussions which are now underway. It is also possible that adjustments to our present operating budget may be indicated as decisions are made on the FY 1974 budget. We will submit in due course statutory notifications of the reprogramming actions which will be necessary to carry out the FY 1973 operating plan. We would be pleased to discuss these matters in greater detail with you, if you wish. Sincerely, Enclosure. JAMES C. FLETCHER, NASA FISCAL YEAR 1973 OPERATING BUDGET, SUMMARY OF NEW OBLIGATIONAL AUTHORITY NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, Hon. FRANK E Moss, DEAR MR. CHAIRMAN: I am enclosing for your information a copy of the announcement NASA is making today on certain program reductions that are necessary as a part of the Administration's effort to hold down Government spending in the current fiscal year. If we can provide additional information of interest to you on these actions, we will be happy to do so. Sincerely, Enclosure. JAMES C. FLETCHER, Administrator. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, Release No. 73-3 NASA PROGRAM REDUCTIONS NASA is starting today to make a number of program reductions to adjust its activities in space and aeronautics to a lower spending level. These reductions are necessary as part of all the actions required to reduce total Government spending to the $250 billion target set by the President for fiscal year 1973. Every effort has been made to continue the essential elements for a balanced and productive space and aeronautics program within tight fiscal constraints. This includes retention of the Skylab experimental space station, the Space Shuttle, the Apollo-Soyuz Test Project, Viking, and the Mariner Jupiter-Saturn mission, and many applications and aeronautics projects. NASA will proceed with development of a new front fan for reducing the engine noise generated by jet aircraft. The actions announced today are being taken in the context of NASA's planning for FY 1974. Details of the revised programs and spending plans for FY 1973 and FY 1974 will be submitted to the Congress later this month, Today's actions are taken in advance of that time in order to save the maximum amount of money in this fiscal year. The following is a list of major actions being taken by NASA : In Manned Space Flight, the manpower buildup on the Space Shuttle will be slowed down, with some resulting delay in the Shuttle's first orbital flight. In Space Science, work on the High Energy Astronomy Observatory (HEAO) project is being suspended for the time being. In Space Applications, NASA will phase out of its work on communications satellites. In Research and Technology, work on nuclear propulsion will be discontinued and work on nuclear power will be sharply curtailed. The Plum Brook station will be closed. In Aeronautics, an experimental Quiet Propulsive Lift Short Takeoff and Landing (QUESTOL) research aircraft will be cancelled. However, quiet propulsive lift technology will continue to be developed. Here are some of the reasons for making these specific reductions: The Space Shuttle is the key to the U.S. future in space, and its development will proceed. However, at the overall slowed pace of the U.S. space program, Shuttle development will also be slowed somewhat so that it will not require an inordinate share of the available resources. HEAO is designed to explore the unknown through the eyes of highenergy astrophysics. Although much is to be learned in this field, it is not essential to move out at any specific pace. Since HEAO is just now getting under way, it is possible to suspend work on this project without a great deal of wasted costs. During the period of suspension (expected to last at least one year), NASA will study ways to meet some of HEAO's objectives at lower costs. In the meantime, some work in high-energy astrophysics will continue with spacecraft such as the Small Astronomy Satellites. NASA has been the catalyst in bringing into being a commercially viable communications satellite business. The technology of communications satellites is being developed further with the flight testing of ATS-F (Applications Technology Satellite) now scheduled for 1974. Further advances in satellite communications research and development can be accomplished by industry on a commercial basis without Government support. NASA will, therefore, phase out of its in-house and contracted communications satellite work, and will cancel ATS-G which is just now getting under way as a follow-on to the ATS-F project. NASA's research and technology program provides the building blocks for future space flight projects. Here new instruments are invented, new propulsion systems are developed, and satellite technology is advanced. The rate of development of technology for advanced space missions, however, can be slowed, consistent with the likely timing for such missions. In making these reductions, NASA is seeking to retain projects which are expected to pay off in the near term future and to make the reductions in those with much longer term expectations. In particular, work on nuclear propulsion and large scale nuclear power sources is being terminated be cause all prospective applications are in the very distant future. And since NASA's Plum Brook station near Sandusky, Ohio, is the principal NASA installation devoted to the testing of nuclear power sources and related work, it will be closed. In aeronautics, it is NASA's role to do the basic research and technology required to maintain U.S. superiority in civil aviation, and to support military aviation developments. Much of this work is done on the groundin wind tunnels, on computers, etc.-but some is done in flight with experimental aircraft. One of these experimental aircraft projects-the QUESTOL, for experimenting with quiet propulsive lift technology for short haul aircraft for civilian use-is being cancelled because of its lower priority relative to other NASA aeronautical activities. Since this project is only just getting under way, there will be little wasted effort. Because of uncertainties in the timing of the need for commercial STOL aircraft in the 1980's, the QUESTOL project can be deferred at the present time. Nevertheless, in order to keep the country's options for the 1980's open, NASA will continue work on a quiet propulsive lift engine and on research and technology applicable to STOL aircraft. NASA will also follow closely the progress of the Air Force's Advanced Medium STOL Transport program and will take advantage of information from that program. These are the principal areas immediately affected by NASA's program reductions. Others will be affected to a lesser extent. In most cases, the necessary cut-back actions will be taken at once in order to gain the maximum possible savings. Hon. FRANK E. Moss, NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, Chairman, Committee on Aeronautical and Space Sciences, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: Enclosed for the information of the Committee is a copy of a letter dated today addressed by the National Aeronautics and Space Administration to the President of the Senate transmitting a report on proposed actions to conduct certain programs at levels in excess of those authorized in the National Aeronautics and Space Administration Authorization Act, 1973 (86 Stat. 157). The report is being made pursuant to Section 4 of the above cited Act. Within the total of the amounts authorized and appropriated for Research and Development for FY 1973, two programs-Lunar and Planetary Exploration and Launch Vehicle Procurement-are proposed for funding at levels in excess of those authorized. We notified the Committee of our plans with respect to these programs in our letter of October 10, 1972, which reported on the FY 1973 operating budget which we had established at that time. Sincerely, Enclosure. JAMES C. FLETCHER, Administrator. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, Hon. SPIRO T. AGNEW, DEAR MR. PRESIDENT: Enclosed is a report by the National Aeronautics and Space Administration to conduct certain programs at levels in excess of those authorized in the National Aeronautics and Space Administration Authorization Act, 1973 (86 Stat. 157), together with the facts and circumstances related to each action. This report is being made pursuant to Section 4 of such Authorization Act and is being submitted to the President of the Senate pursuant to Rule VII of the Standing Rules of the Senate. Two programs, Lunar and Planetary Exploration and Launch Vehicle Procurement, are proposed for funding at levels in excess of those authorized. The report explains these increases, which consist of a budgetary and programming adjustment in the Lunar and Planetary Exploration Program, and a requirement to provide for unanticipated program growth to accommodate reliability and quality assurance improvements, cost increases and other changes in our estimates for the Launch Vehicle Procurement Program. Sincerely, Enclosure. JAMES C. FLETCHER, REPORT ON PLANNED ACTIONS IN THE FY 1973 PROGRAM The following table shows the currently planned FY 1973 program levels compared to the FY 1973 Authorization Act: Two programs, Lunar and Planetary Exploration and Launch Vehicle Procurement are planned at program levels in excess of the amounts authorized. |