avoid any further strain on our business revenues. Consequently, I have had to apply a series of management actions aimed at reducing costs wherever possible. These moves have been applied, not only in the transit activities, those most directly affected by the lower workload level, but to just about every activity in the Commission, including all of the support functions. Only after reducing our cost to what I consider the near-absolute requirement and awaiting the full impact of the pipeline, did we then consider applying the tolls increase. Senator Chiles: Why is the Commission pushing ahead with capital projects to expand canal capacity when traffic losses are occurring as a result of the pipeline? Mr. McAuliffe: A number of capacity projects were completed during the last two years in response to traffic demand that last year averaged over 38 vessels per day and during some periods exceeded 40 daily--in fact, during one month transits averaged 42 ships per day. Although traffic fell to a low of just over 32 per day during January, demand is expected to increase during the remainder of the year with transits averaging some 34 to 35 per day. Beyond fiscal year 1983 further long-term growth is projected. The Canal's present capacity is sufficient to handle the expected traffic levels during the next few years while providing a "cushion" necessary to accommodate traffic fluctuations. CANAL SPENDING FOR "MORAL WELFARE AND RECREATION" Senator Chiles: In a 1982 GAO report, questions were raised about Commission spending for Moral Welfare and Recreation (MWR). How large is the Commission's MWR program? Can it be specifically, fully and easily identified in the documents presented to this Subcommittee? If so, where? if not, why not? Mr. McAuliffe: The question concerns expenditures for morale, welfare and recreation from the "contingencies of the Administrator". The Commission has two separate accounts that fall under the general category of morale, welfare, and recreational activities. The first of these, "contingencies of the Administrator", has been specifically authorized in the Commission appropriations for fiscal years 1980 through 1983, and has been under limitation for FY 1981 through 1983. The purpose of this fund is to provide support to community organizations which contribute to the morale and welfare of the Commission employee community. The second account is an account for Commission-operated programs to further employee morale, primarily through a recreational activities program for Commission employees and their dependents. This program is authorized by the Treaty documents and has been disclosed to the Congress in each year's budget presentation. (Paragraph 11 of the Agreed Minute to the Agreement in Implementation of Article III of the Panama Canal Treaty provides that the agency "may continue to operate and maintain noncommercial recreation and community service areas and facilities for the benefit of all occupants of the housing areas and all employees of the Commission, and their dependents.") The annual limitation on "contingencies of the Administrator" has been $25,000 for FY 1981-1983. Commission actual expenditures under that fund for fiscal year 1982 were $23,670. The expenditures from the morale, welfare, and recreational account for FY 1982 were $1.9 million. Senator Chiles: What criteria is used for identifying charges against the MWR program? How are charges made against the MWR program distinguished from recreational expenditures made from the "contingencies of the Administrator" fund? Mr. McAuliffe: The contingency fund for cash grants is distinguishable from the Commission's operation of recreational services and facilities because the nature of the two expenditures are different. The amounts shown under the latter classification pertain to recreation services and programs in which the Commission sponsors or has semi-sponsorship responsibility. This includes such items as the operation and maintenance of swimming pools, tennis courts and athletic youth leagues organized by and administered by the Commission. The contingency fund on the other hand relates to providing financial assistance in the form of cash grants to community organizations where such assistance is found necessary for the organization to carry out its program. Such programs need not be recreational in nature, and are conducted by the organizations themselves rather than the agency. Senator Chiles: We understand that the Commission maintains and operates a launch or launches to take employees and others on deep-sea fishing trips. Is this a part of the MWR program? How much is this cost? Where is it reported? Mr. McAuliffe: The operation of the launch Blue Runner is a part of the recreational activities and facilities program on page 25 of the 1984 justification. The estimated cost in 1984 is around $250 thousand. The operation of the launch is an effective way of maintaining employee morale; however, because of our reduction in revenue, that launch has been taken out of service. Senator Chiles: We also understand that the Commission is developing a recreational area at Gamboa? How much has (will) this project cost? Is this a part of the MWR program and where are these costs disclosed in the budget presentation? Mr. McAuliffe: The idea for developing an old golf course in the Gamboa area into a recreational area for the benefit of all Commission employees and their dependents was developed in March, 1981. The original concept of the project consisted of repairs to existing bohios (small covered huts) throughout the area, installation of additional picnic bohios and the development of a beach area. Cost of the project was to be held to a minimum by using scrap materials, labor, and machinery, from Dredging Division, when available, and volunteer labor from communities. Original cost was estimated at approximately $120,000. The concept was presented to the Morale, Welfare and Recreation Board and the Board unanimously agreed that the project was needed and would be a great morale booster. Work began in August 1981 and as the work progressed, the scope of the project was gradually modified. By the end of May 1982, the beach area was completed, fourteen (14) small picnic bohios were fabricated and installed, one large bohio was rehabilitated, an existing parking area was enlarged and improved and an asphalt road through the site was constructed. Total cost for the work performed amounted to $524,000 ($298,000 Capital and $226,000 expense). The Capital portion was accommodated by using FY 1982 savings and slippage in projects under Improvements to Support Services Facilities. The source of the expense portion was the FY 1982 operating expenses for the Recreation activities and facilities (page 25) and General Maintenance expenses (page 15). Year-to-date (FY 1983) costs amount to $6,053 and includes general expenses for routine maintenance of the facility. Operation and maintenance of a recreational activities program (MWR) for Commission employees and their dependents is authorized by Paragraph 11 of Agreed Minute to the Agreement in Implementation of Article III of the Panama Canal Treaty which provides that the agency "may continue to operate and maintain non-commercial recreation and community service areas and facilities for the benefit of all occupants of the housing areas and all employees of the Commission and their dependents". SUBCOMMITTEE RECESS Senator ANDREWS. The subcommittee will now stand in recess until Thursday, March 31, in the same room. Mr. GIANELLI. Thank you very much, Mr. Chairman. [Whereupon, at 11:25 a.m., Wednesday, March 23, the subcommittee adjourned, to reconvene at 10 a.m., Thursday, March 31.] DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1984 TUESDAY, APRIL 12, 1983 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met at 10:35 a.m. in room SD-192, Dirksen DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION STATEMENT OF J. LYNN HELMS, ADMINISTRATOR, FEDERAL AVIATION ADMINISTRATION ACCOMPANIED BY WILLIAM A. PLISSNER, DIRECTOR, OFFICE OF BUDGET SUBCOMMITTEE PROCEDURE Senator ANDREWS. The subcommittee will come to order. This morning we have the privilege of hearing from the Federal Aviation Administration (FAA). Lynn Helms, the Administrator, is of course going to be the key witness for the FAA. Might I advise my good friend, Mr. Helms, that I just flew in from Boston and my plane was precisely on time. So, air traffic control must be working or maybe it is because of the conversation we had yesterday. [Laughter.] That if the darned thing was not going to come through on time. you were going to have to wait. [Laughter.] Welcome, Mr. Helms. Let me assure you on behalf of the subcommittee that your entire statement will be included in the record as if read in full. You can summarize it in any way you want to and then we will proceed to the questions the subcommittee might have. I am glad to have my colleague, the senior member of this committee in fact, the senior member of the Appropriations Committee with us this morning. John, good to have you here. I know of your great interest in the FAA and you are most helpful in that field. 17-540 0-84--21 |