FIFTIETH ANNUAL NATIONAL CONVENTION OF THE AMERICAN LEGION, Resolution No. 544. Committee: Economic. Subject: Legislation to place a floor under the maximum weekly benefit amounts paid to veterans under the Federal law providing unemployment compensation to ex-servicemen. Whereas, the Federal Government has provided unemployment compensation for ex-servicemen for the purpose of assisting the ex-serviceman in readjusting to civilian life; and Whereas, the Secretary of Labor, acting for the Federal Government, has entered into agreements with the agencies administering the State unemployment compensation laws under which the States act as agents of the Secretary of Labor, and make payments of compensation in the same amount as would be payable under the State unemployment compensation law; and Whereas, the maximum weekly benefit amount established by State unemployment compensation laws varies from $34 to $65; and Whereas, it is the conclusion of this Committee that a floor be placed on the maximum benefit amount and that it be related to the average weekly wage in covered employment in that State in which the ex-serviceman first files his claim for unemployment compensation: Now, therefore, be it Resolved, by The American Legion in National Convention assembled in New Orleans, Louisiana, September 10, 11, 12, 1968, That the Legislative Commission be, and it is hereby authorized and directed to introduce and support legislation in the Congress of the United States to amend Chapter 85, Title 5, U.S. Codeunemployment compensation for Federal employees and the ex-servicemen's unemployment compensation program-to provide that the maximum weekly benefit amount for ex-servicemen will be an amount not lower than 50 percent of the average weekly wage in covered employment in that State in which the serviceman first files his claim for unemployment compensation after his most recent discharge or release. FIFTIETH ANNUAL NATIONAL CONVENTION OF THE AMERICAN LEGION, NEW ORLEANS, LA., SEPTEMBER 10, 11, 12, 1968 Resolution No. 539. Subject: Funding UCFE-UCX benefits. Whereas, congressional appropriations are now made on a fiscal year basis for the payment of unemployment compensation for ex-servicemen, (UCX) and for Federal employees (UCFE), as authorized by Chapter 85, Title V, U.S. Code; and Whereas, funds thus appropriated can be used only for the payment of unemployment compensation claims so that the amount of expenditure is controlled by the number of claims rather than by amounts allocated for particular periods of time; and Whereas, the volume of claims and payments may change rapidly due to such factors as the closing of Federal installations, the rate of discharge of servicemen, or economic conditions in a given area or state, and such factors make it difficult to predict the State-by-State and national rate of expenditures; and Whereas, in the past there have actually been suspensions or interruptions of payments due to the fact that adequate funds were not available for the volume of claims and payments experienced; and Whereas, such interruption of payments creates an inconvenience and hardship to claimants and an embarrassment to both the State and Federal Governments; and Whereas, in order to avoid the exhaustion of funds available to an individual State Agency at a time when another State may have more than adequate funds on hand the Bureau of Employment Security has resorted to numerous telephonic and telegraphic requests for reports from individual State Agencies, which has proved to be both burdensome and difficult; and Whereas, the best interests of unemployed Federal workers and ex-servicemen, as well as the proper discharge of responsibilities of the State Agencies in their role as agents for the Federal Government, depend upon the continuing availability of funds and the uninterrupted payment of benefits; and Whereas, the appropriation by fiscal year places limitations on the use of appropriated funds in the subsequent fiscal year and thus involves risk of delay in the payment of claims during early periods of each new fiscal year despite the statutory commitment to pay these claims whenever the obligation is incurred; and Whereas, the appropriation by fiscal year requires authorization for advance spending, adjustment of accounting records to show separately those obligations incurred in a single year but which were paid from separate year authorizations, and other additional record keeping that serves no real or useful purpose in the control of amounts spent or accountability for funds: Now, therefore, be it Resolved, by The American Legion in National Convention assembled in New Orleans, Louisiana, September 10 11, 12, 1968, That The American Legion hereby urges that the Bureau of Employment Security seek to obtain funds for pay. ment of unemployment compensation to ex-servicemen and Federal employees through a permanent indefinite appropriation rather than one limited to a specific fiscal year; and be it further Resolved, That copies of this resolution be sent to the Bureau of the Budget and to appropriate members of Congress. [From the Congressional Record-House, Feb. 6, 1969] SUPPLEMENTAL APPROPRIATION, 1969 Mr. MAHON. Mr. Speaker, I ask unanimous consent for the immediate consideration of the joint resolution (H.J. Res. 414) making a supplemental appropriation for the fiscal year ending June 30, 1969, and for other purposes, and I ask unanimous consent that the joint resolution be considered in the House as in the Committee of the Whole. The Clerk read the title of the joint resolution. The SPEAKER. Is there objection to the request of the gentleman from Texas for the immediate consideration of the joint resolution? There was no objection. The SPEAKER. Is there objection to the request of the gentleman from Texas that the joint resolution be considered in the House as in the Committee of the Whole? There was no objection. The Clerk read the joint resolution as follows: "H.J. RES. 414 "Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sum is appropriated out of any money in the Treasury not otherwise appropriated, to supply a supplemental appropriation for the fiscal year ending June 30, 1969, and for other purposes, namely: "DEPARTMENT OF LABOR "Bureau of Employment Security "For an additional amount for 'Unemployment compensation for Federal employees and ex-servicemen', $36,000,000." Mr. MAHON. Mr. Speaker, I move to strike the last word. Mr. Speaker, this is a joint resolution which provides an appropriation of $36,000,000 for unemployment compensation for Federal employees and, more especially for ex-servicemen. This request came to Congress in a supplemental request in mid-January. It is a routine request. The funds are required by law. The appropriations for this legislation are normally handled by the Subcommittee on Labor, and Health, Education, and Welfare, headed by the gentleman from Pennsylvania, Mr. FLOOD, who is here beside me and would be glad to answer any technical questions that Members may have. However, I know of no objection and no controversy. Mr. Bow. Mr. Speaker, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Ohio. Mr. Bow. Mr. Speaker, I thank the gentleman for yielding to me. There is no objection to this appropriation on the part of the minority side of the committee. It is a matter of appropriating the $36 million which is in the budget message sent to us. I am advised that the balance available as of February 1 was $4 million, and that probably will be used, within the next week. These payments are made to ex-servicemen coming from Vietnam and other areas of the world. When they are discharged and cannot find employment they are entitled to this under the law. It would seem to be a great mistake if we did not provide the money so that these veterans could be paid. This also provides for unemployed Federal workers. It is an obligation which must be met. It seems to me it is advisable to meet it at this time. Mr. MAHON. We are advised that if we do not provide the funds now, payments due next week cannot be made. Mr. GROSS. Mr. Speaker, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Iowa. Mr. GROSS. I thank the gentleman for yielding. When in January did this come down? Did the request come in with the budget on January 15? Mr. MAHON. Yes. It is a part of the whole program of the Government. It was cranked into the budget, specifically-in the budget that came to Congress last month. Mr. GROSS. Let me ask the gentleman: Is this a result of a failure of the Johnson administration to request enough money for this purpose? Mr. MAHON. We provided some $92 million last year, which was our best estimate at that time, but it has proven to be inadequate. The year before it was $93 million and the year before that $90 million. It has fluctuated, and it is somewhat unpredictable for in advance. This was the best estimate that could be made at that time. We appropriated the full budget request last year. Mr. GROSS. It is apparently increasing, but from what the gentleman just said apparently the figures, the total expenditures, were not too far apart in each of those years. How many submissions of a deficiency of this kind have we had in the last 3 years? Have we had one every year? Mr. MAHON. We had one last year. Mr. GROSS. Did you have one the year before? Mr. MAHON. We did not. Mr. GROSS. But you had an underestimated budget last year and this is the second year in succession that the Johnson administration sent up a patently underestimated budget. Is that true? Mr. MAHON. I would not say it was patently underestimated. It is a matter of one not being able to foretell how many Federal employees will be entitled to unemployment compensation payments and how many Vietnam veterans and other veterans will be entitled to it. It is somewhat unpredictable. I would assume the Budget Director, whether he be a Democrat or a Republican, would usually hold it down to the lowest figure reasonably possible, but you just cannot predict the amount which will be due, as a matter of law, well over a year ahead of time. And that is what they are required to do under our budget system. Mr. GROSS. But $36 million seems to be quite an underestimation for this particular purpose. Mr. MAHON. It was, but the original estimate was about the same as the previous 2 years' experience. Mr. GROSS. With the number of ex-servicemen growing and they knew that it was growing, how could they underestimate to this extent? That is the point I am trying to make. Was this for the purpose of making their budget look good when they submitted it a year ago? Mr. MAHON. I would not believe so, but, of course, the object is and the effort is always made to hold the figures as low as they reasonably can be. Mr. HALL. Mr. Speaker, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Missouri. Mr. HALL. I appreciate the gentleman from Texas yielding. As I understand it, this is to make up for previously committed funds for our returning servicemen and unemployed Federal employees, and it is a "must" as far as the Congress is concerned in the opinion of the chairman of the Committee on Appropriations and the subcommittee chairman and certainly the distinguished ranking minority member of the committee from Ohio. Mr. MAHON. Yes. Mr. HALL. My concern, first of all, is that there has been an underestimate in order to make budget figures look good, as was just brought out by my distinguished colleague from Iowa. Beyond that, Mr. Speaker, I wonder if the distinguished chairman could give us any indication or pledge that we will not have additional fragmented deficiency actions by unanimous consent-in this or in other departments before the new appropriation bill comes out. Mr. MAHON. The new budget of last month contained well over $4 billion in supplemental requests for fiscal 1969. That was presented to us in mid-January. We would like to consider them all in one package, in one bill, but in view of the fact that the funds for the purposes explained here have almost been exhausted, it was felt that action had to be taken before the recess in this particular field. Now, we might get into this kind of thing on some other portion of the pending supplemental requests. However, I do not foresee it at the moment. Yet I cannot foreclose the idea that there may be other items which will have to be taken up separately. Mr. HALL. Mr. Speaker, if the gentleman will yield further, I appreciate the gentleman's statement. I understand it is estimated that this fund will run out of money by February 10 while we are in our infamous recess. But, be that as it may, what I want to know is whether or not there will be other reports brought up, and other such requests made, before we have an opportunity to act upon the budgeted appropriations bills as a whole? Of course, I know that depends upon the authorizing activities of the legislative committees. However, can we have some assurance that this so-called supplemental or emergency deficiency action wherein unanimous consent is requested will not be repeated again unless it is absolutely necessary, and that it will show up in the deficit or surplus as reported for this particular fiscal year? Mr. MAHON. Well, we have not had an opportunity yet to have before us the new Director of the Bureau of the Budget, the new Secretary of the Treasury, and other witnesses. We cannot foresee just what may develop with reference to the subject. But I would hope that we could have one bill for the whole package of supplementals at a later time and I would hope that would be the first regular bill that the House would consider from the Committee on Appropriations. But these funds were all in the budget. This $36 million is not outside the forecast that was made in the new budget as to a projected surplus. Mr. HALL. Mr. Speaker, if the gentleman will yield further, the $36 million that we pass here today-and I think we must pass here today and I therefore agree with the gentleman's statement-will be deducted from the alleged Johnson surplus even though that surplus involved trust funds; is that correct? Mr. MAHON. No; not in any way. It has already been taken into consideration in computing the surplus. It was cranked into the figures for fiscal 1969 sent up in the President's budget for 1970. This does not change the surplus predicted in the budget. Mr. HALL. I see, then, that we have to revert to the statements made in the well of the House so often that the surplus was from the trust funds and the revolving funds: whereas the actual expenditure funds will be in a deficit situation, but this will not add to that deficit? Mr. MAHON. This will not subtract from the surplus heretofore projected for fiscal 1969 in the new budget received last month. (Mr. Michel asked and was given permission to extend his remarks at this point in the Record.) [Mr. Michel's remarks will appear hereafter in the Extensions of Remarks.] The SPEAKER. The question is on the engrossment and third reading of the joint resolution. The joint resolution was ordered to be engrossed and read a third time, and was read the third time. The SPEAKER. The question is on the passage of the joint resolution. The joint resolution was passed. A motion to reconsider was laid on the table. [From the Congressional Record Senate, Feb. 7, 1969] A SUPPLEMENTAL APPROPRIATION Mr. RUSSELL. Mr. President, I ask the Chair to lay before the Senate a message from the House of Representatives on House Joint Resolution 414. The PRESIDING OFFICER laid before the Senate, House Joint Resolution 414, making a supplemental appropriation for the fiscal year ending June 30, 1969, and for other purposes, which was read twice by its title. Mr. RUSSELL. I ask unanimous consent that the Senate proceed to its immediate consideration. The VICE PRESIDENT. Is there objection to the present consideration of the joint resolution? There being no objection, the Senate proceeded to consider the resolution. Mr. RUSSELL. Mr. President, yesterday the House of Representatives passed this joint resolution, making a supplemental appropriation of $36 million to the Bureau of Employment Security under the Department of Labor for unemployment compensation for Federal employees and ex-servicemen. Under the program, claims of unemployed Federal employees and ex-servicemen are processed by the State unemployment insurance agencies on the same basis as claims of other unemployed workers whose employment is covered under the State unemployment compensation law. Federal funds are allocated to the States, which act as agents for the Federal Government in the payment of these benefits. The period of extended coverage varies from 22 to 39 weeks among the States. During the first half of fiscal year 1969, the average payment for Federal employees was $44.20 each week for a period of 8.9 weeks, while the average for ex-servicemen was a weekly payment of $44.60 for 5.1 weeks. The Department of Labor submitted a budget request of $99,800,000 for the 1969 program to the Bureau of the Budget, which in turn approved an estimate of only $92,200,000, the amount of the 1969 appropriation. Separations under each category have exceeded the original estimates; thus, the President's message of January 17, 1969, requesting supplemental appropriations for fiscal year 1969, included an additional $36 million for the program. The appropriation of funds for this program has become most urgent in that as of February 1, 1969, only $4.4 million remained available. Expenditures for the month of January were $13.8 million. The Department of Labor advises that States will not be able to make payments after the close of business today. Unless funds are provided at once, the thousands of persons including servicemen returned from Vietnam for separation-will go to their local unemployment compensation offices next week to find their payments delayed until these additional funds are appropriated. I am sure none of us wishes to see the servicemen returning from Vietnam for separation finding it impossible to draw these funds from their local unemployment compensation offices. I now, by agreement reached with leaders of the Committee on Appropriations, request that this item be promptly passed as now embraced in House Joint Resolution 414. Mr. HRUSKA. Mr. President, will the Senator yield? Mr. RUSSELL. I yield. Mr. HRUSKA. Mr. President, on behalf of the minority leader, I am pleased to say that the minority joins in the request for immediate consideration and favorable action. Several colleagues have received word from their States indicating the need for the appropriation-the most recent was received this morning. The junior Senator from Michigan informed me that unless this money is allowed, there will not be any further payments starting on Monday morning. This obligation has already been contracted. The problem arises because of underestimating the amounts required. The resolution has been here since the middle of January, and I join in the Senator's request for immediate consideration and favorable action. Mr. RUSSELL. Mr. President, I ask unanimous consent to have printed at this point in the RECORD a telegram from the National Legislative Commission of the American Legion, which points out the grave condition that will exist if this joint resolution is not passed. There being no objection, the telegram was ordered to be printed in the Record, as follows: "WASHINGTON, D.C., February 6, 1969. "Hon. RICHARD B. RUSSELL, "Chairman, Senate Committee on Appropriations, Old Senate Office Building, Washington, D.C.: "The American Legion is deeply concerned that many recently discharged veterans are denied unemployment compensation because UC funds are exhausted. We understand that $19.8 million insupplemental funds for this purpose was requested by the President January 17 last. Failure of the Congress to provide this money prior to the upcoming recess will work asevere hardship on thousands |