HJIO 1954-6 чёрну 4 COMMITTEE ON APPROPRIATIONS JOHN TABER, New York, Chairman RICHARD B. WIGGLESWORTH, Massachusetts H. CARL ANDERSEN, Minnesota ERRETT P. SCRIVNER, Kansas FREDERIC R. COUDERT, JR., New York EARL WILSON, Indiana NORRIS COTTON, New Hampshire BENJAMIN F. JAMES, Pennsylvania CHARLES R. JONAS, North Carolina OTTO KRUEGER, North Dakota MELVIN R. LAIRD, Wisconsin ELFORD A. CEDERBERG, Michigan CLARENCE CANNON, Missouri J. VAUGHAN GARY, Virginia JOHN E. FOGARTY, Rhode Island ANTONIO M. FERNANDEZ, New Mexico OTTO E. PASSMAN, Louisiana SIDNEY R. YATES, Illinois ALFRED D. SIEMINSKI, New Jersey GEORGE Y. HARVEY, Clerk KENNETH SPRANKLE, Assistant Clerk (II) THIRD SUPPLEMENTAL APPROPRIATION BILL, 1954 SUBCOMMITTEE ON LABOR AND HEALTH, EDUCATION, AND FRED E. BUSBEY, Illinois, Chairman F. L. MILLER, ASSISTANT CHIEF FOR UNEMPLOYMENT INSURANCE EUGENE LOVE, CHIEF, ESTIMATES AND EXPENDITURES DIVISION ROCCO C. SICILIANO, ASSISTANT SECRETARY FOR EMPLOYMENT UNEMPLOYMENT COMPENSATION FOR VETERANS Mr. BUSBEY. The committee will come to order. We have before us for consideration, supplemental appropriations for 1954, for "Grants to States" and "Unemployment Compensation for Veterans." Without objection, we will include in the hearings at this point the "Unemployment compensation for veterans" portion "UNEMPLOYMENT COMPENSATION FOR VETERANS "For an additional amount for "Unemployment compensation for veterans," "Unemployment compensation for veterans, next succeeding fiscal year: For making, after May 31 of the current fiscal year, payments to States, as authorized by title IV of the Veterans' Readjustment Assistance Act of 1952, such sums as may be necessary to pay benefits for the first quarter of the next succeeding fiscal year, and the obligations and expenditures thereunder shall be charged to the appropriation therefor for that (1) Based on experience in recent months, it is now estimated that the requirements for benefit payments to eligible veterans will be $20,500,000 more than the amount provided by the existing appropriation. This proposed supplemental appropriation is necessary to permit the Department of Labor to meet the increased requirements. The proposed provision is needed to provide authorization to advance funds to the States, at the end of the current fiscal year, out of the succeeding fiscal year's appropriation so that the States may have funds on hand, as required by State law or regulation, before the succeeding fiscal year begins. This authorization is similar to those heretofore provided for "Grants to States for unemployment compensation and employment service administration" and "Grants to States for public assistance." Mr. BUSBEY. Mr. Goodwin, you may proceed. Mr. GOODWIN. The one you wish to start on is the unemployment compensation for veterans, as I understand it; is that correct? PRIOR FUNDS APPROPRIATED Mr. BUSBEY. Yes, and in connection with that item, I want the record to show that this committee included $15 million in the second supplemental bill even though we didn't have time to hold hearings between the time the request for $20,500,000 was received and the time the bill was reported. We did that because we recognize that this is an uncontrollable item and that we might have a real emergency if all of the $20,500,000 request were deferred until we could hold hearings and consider it in an orderly manner. Mr. GOODWIN. I would like to say on the record what I said to you a moment ago, that we certainly appreciate that action on the part of the committee, because as you know, we are up against a deadline, on running out money for this program and the willingness of the committee to expedite it will greatly help on that problem. We appreciate it very much. Mr. Chairman, Mr. Siciliano, the Assistant Secretary of Labor, accompanied us, today. He may have something of a general nature referring to both of these items that he would like to say before we start on the detail, if you would care to hear from him. Mr. BUSBEY. I would like for the record to show that Mr. Siciliano is from the great State of Illinois. We welcome you to the committee, sir. GENERAL ECONOMIC REASONS FOR FUND SHORTAGE Mr. SICILIANO. Thank you, Mr. Chairman. I have this very brief statement which is going to be general in nature and that is just to comment about the reason we are here, today. The reason is to present this supplemental appropriation which more or less is because of a gradual rise in the unemployed ranks during the past few months. Regardless of any reasoning that might account for this rise, I think that we must recognize that at least as far as one-half of the request is concerned, that dealing specifically with unemployment compensation for veterans, we are speaking of benefit amounts that is to go to the benefit of veterans. Necessarily, we think there is a relation to the other half of the request and that relation has to do with grants to States for their normal unemployment compensation increases and the consequent effect that it would have on the administration of the State programs for all of this, both parts. With that thought in mind, I think that would conclude my remarks, Mr. Chairman. Mr. BUSBEY. Thank you, Mr. Siciliano. Now, Mr. Goodwin, we will be glad to hear your statement. GENERAL STATEMENT Mr. GOODWIN. Thank you very much, Mr. Chairman. I have a very brief statement which I would like to make. We are requesting an additional amount of $20,500,000 for payment of unemployment compensation for veterans for fiscal year 1954. Our revised estimate of $60,292,608 is made up by a direct appropriation of $38,500,000, $1,292,608 available from prior year balances, and our supplemental request of $20,500,000. To assure that there would be no lag in the payment of benefits, this committee approved and subsequently voted $15 million of this request. At the same time, the committee deferred action on the remaining $5.5 million, and a change in language which had been requested. The increase requested is a result of the recent rise in unemployment. When we appeared before the House Appropriations Committee on March 6, 1953, we reduced our original estimate for 1954 by $6 million, from $47 million to $41 million. At that time, I said, and I am quoting from the printed House hearings As you know, our experience with this program is still meager. In making this reduction, we are running some risk of having cut it too much and if that proves to be a fact, we will have to request additional funds. The rate of insured unemployment among Korean veterans during the first 6 months of fiscal year 1954 was 1.9 percent. However, the rate rose in the latter part of the period, and in January 1954, it reached 3.7 percent. Mr. BUDGE. At that point, would you tell us what the figure was for January 1953, so that we might have that comparison? Mr. GOODWIN. Yes, sir. In January 1953, Mr. Congressman, it was 2.8 percent. Last year the rate moved upward in February, and then declined slowly during the remaining months of the fiscal year. On this basis, it is assumed that insured unemployment during the second half will average 3.1 percent. While an insured unemployment rate of 3.1 percent would be about 63 percent greater than the 1.9 percent experienced in the JulyDecember period, expenditures are expected to almost double those of the first 6 months. This is accounted for by the continuing growth in the number of Korean veterans in civilian life. It is anticipated that there will be an average of 2,650,000, as compared to about 2,200,000 in the July-December period. State expenditures were $6,560,000 in January, as compared with $3,240,000 in January of 1953, due in part to a constantly growing Korean veteran labor force and in part to a higher rate of unemployment. It is expected that expenditures will increase in February and March, and then, following a seasonal pattern, taper off through the last 3 months of the fiscal year. The expenditures for the first half of the year were approximately $20,300,000, and for the last half are estimated at about $40 million. Should this seasonal pattern not occur, our requirements may be increased. In preparing this request, we have used the latest valid experience available. For example, we had been estimating the average cost of payments made to supplement amounts paid under the State unemployment insurance program at $9; however, experience in the first half of 1954 was $8.52. We have, therefore, reflected the lower figure in this estimate. If the Congress appropriates the $15 million which the House approved, it will provide for the payment of benefits until about June 1. Without such action, it is estimated that all State agencies will be out of funds by March 25, and some State agencies will be running out of funds prior to that date, depending upon the accuracy of their estimates made when requesting funds. In order that State agencies may continue to pay benefits, some funds should be made available by approximately March 10, 1954. The requested appropriation language will permit the Bureau to make grants to the States in June of 1954 from the 1955 appropriation. Advance grants have been requested by 46 States, and 2 States have cited Attorney General's rulings which would prevent the payment of benefits until funds are deposited in the State account. We believe the change in language is essential if we are to provide the States with funds to pay benefits promptly at the beginning of 1955. Similar language has been included in the appropriation for grants to States for a number of years. I might say, Mr. Chairman, and gentlemen of the committee, when this was presented to the Senate committee the other day, they raised the question as to why we had not had a problem on the language in this last year. In other words, the carryover from 1953 to 1954. The reason we did not have the problem at that time was because we had a small balance which we were able to use to take care of the early 1954 needs of the States. Mr. Chairman, that concludes the statement. I will be glad to answer questions. CALCULATION OF REQUEST Mr. BUSBEY. Without objection, we will include in the hearings at this point, pages 5 and 6 of the justification, which show the mechanics by which this estimate was calculated. (The pages referred to follow:) Unemployment compensation for veterans-Actual State expenditures, fiscal years 1958 and 1954 |