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OFFICE OF ECONOMIC OPPORTUNITY-Con.

ECONOMIC OPPORTUNITY PROGRAM-Continued quested will provide for action programs in approximately 300 communities in 1966 compared with 240 in 1965, and for planning grants to an additional 170 communities in 1965 and 300 in 1966. A substantial portion of these funds will be used for the development of preschool programs for culturally deprived children.

In addition to the operating and planning grants, funds are included to support research, training, and demonstration programs. Research programs are designed to identify the causes of poverty and variations in the patterns of poverty regionally and locally. The training programs include internships with local, State and Federal agencies, skills and leadership training for poor persons working with local agencies, and professional training for personnel at local, State, and Federal levels. It is estimated that 27,000 persons will be involved in such training in 1965 and 54,500 in 1966.

The demonstration programs include both experimental programs designed to test the value of proposed activities prior to initiating their use, and national priority programs providing assistance on a widespread basis in order to expedite community understanding of the values of new programs.

Technical assistance is provided to both State agencies and local communities. It will have a particular impact on rural communities and the smaller cities which may not have resources to organize their own proposals. Technical assistance grants are planned for about 30 States in 1965 and possibly 15 more in 1966.

3. Migrant agricultural employees program. This activity provides a special program to meet the housing, sanitation, education, and day care needs of migratory agricultural workers and their families. Grants or contracts will be made to expedite the activities of public and nonprofit agencies now conducting programs of assistance to improve health and living conditions of migratory workers in the three major national streams of domestic migrants: (1) Texas, Arizona, and the west coast, (2) Gulf of Mexico to the Northern Plain States, and (3) Florida northward along the east coast. Loans for similar purposes are financed under the Economic opportunity loan fund.

4. Rural areas program. This activity finances the administrative expenses incurred by the Farmers' Home Administration of the Department of Agriculture in operating the rural loan program authorized by title III of the Economic Opportunity Act. Program expenses are included in the schedules for the Economic opportunity loan fund.

5. Work experience program.-This activity provides work and training programs for unemployed parents of dependent children and for other needy persons in order to prepare them for regular employment and hence to enable them to become self-supporting. Utilizing the authority of section 1115 of the Social Security Act, the Welfare Administration of the Department of Health, Education, and Welfare will expand work and training programs for relief recipients in the States now conducting such programs and will inaugurate such programs on a project basis in communities in other parts of the country. One of the important criteria to be used in approving these grants is the potential for incorporating proj

ects into ongoing State and local programs at the end of the experimental period. It is estimated that 88,000 persons will be assisted with the 1965 funds, while 112,000 will be enrolled on projects funded in 1966.

6. Adult literacy program. This activity provides for programs of instruction for adults whose inability to read and write the English language constitutes a substantial impairment of their ability to secure gainful employment. Matching grants will be made to assist in: (1) meeting the cost of local educational agency programs for instruction; (2) financing pilot projects to improve materials or methods; and (3) improving services provided by State educational agencies. The Office of Education in the Department of Health, Education, and Welfare will administer the program.

The funds available will train approximately 37,500 persons in 1965 and about 70,000 in 1966.

7. Volunteer program.-Volunteers in Service to America (VISTA) offers an opportunity on the domestic scene for volunteers with a spirit of service to work directly on the problems of poverty. Volunteers will participate in programs administered and supported by the Economic Opportunity Act, in existing Federal programs related to poverty problems, and in related State and local activities. During 1965, it is planned to recruit, select, train and support approximately 3,500 volunteers, the majority of whom will enter training in the spring of including about 5 weeks of preassignment training. It 1965. The normal period of service will be 1 year, is estimated that 5,000 volunteers will begin service during 1966.

8. General direction and administration.—The Office of Economic Opportunity directly administers the Community Action and the Volunteers in Service to America programs, and exercises primary responsibility for the Job Corps program, which will be operated under contract by cises continuing coordination and review of all programs other public and private agencies. The Office also exerdelegated to other agencies and assists in coordinating the programs of all Federal agencies into an integrated attack on poverty. This activity includes funds to support general research on poverty and to finance an information center on poverty programs.

Object Classification (in thousands of dollars)

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Obligations are distributed as follows:

Agriculture....

Health, Education, and Welfare..

Interior..

Labor..

51,200 245,000

39,590

53,000

192,500

267,000

39,000 132,500

Personnel Summary

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5,000

1 Balances of selected resources are identified in the statement of financial condition.

Rural areas program.-Loans will be made by the Farmers Home Administration of the Department of Agriculture (through their regular county office organizational structure) to low-income farm families for the purposes of acquiring or improving real estate or reducing encumbrances thereon; purchasing operating supplies and equipment; and participating in cooperative associations. 450 Loans will also be made to low-income farm and rural 4,800 900 families to finance small non-agricultural enterprises to $8,300 supplement their income. The maximum loan is $2,500. Approximately 7,000 rural families will be assisted in 1965. The balance of funds carried forward from 1965, together with the new obligational authority requested for 1966, will provide for approximately 15,500 loans in 1966.

9.1

1965 1966 estimate estimate

325

Loans also will be made to help establish new cooperatives and finance existing cooperatives furnishing essential processing, purchasing or marketing services, supplies, or facilities predominantly to low-income rural families. In 1965 approximately 375 loans will be made to cooperatives that will assist 9,000 low-income rural families, and about 410 loans will be made in 1966 to assist approxi1,400 mately 10,000 such families.

7,000

Migrant workers program.-Loans will be made to institutions, organizations, farm associations, or individuals for improvement of housing and sanitation for 1,750 migrant agricultural workers. The program is administered by the Community Action division of the Office of Economic Opportunity. Loans amounting to $1 million in 1965 and $2 million in 1966 are estimated.

12,500 28,000
4,000
500
17,000 36,750

3. Migrant program loans..

Total capital outlay, funded....

Total program costs, funded.. Change in selected resources

17,325 38,150

1

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4,000 1,450 21,325 39,600

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Financing. The capital for this fund is derived by transfer from the appropriation Economic opportunity program.

Revenue, Expense, and Retained Earnings (in thousands of dollars)

Repayments on loans....

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Interest revenue..

-325

-1,190

21.98 Unobligated balance available, start of

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year..

24.98 Unobligated balance available, end of

Revenue..

year..

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Net operating loss for the year...

-210

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1 Excludes administrative expenses financed by "Economic opportunity program."

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1 The changes in these items are reflected on the program and financing schedule. Object Classification (in thousands of dollars)

---

2,000
28

2,028

The purposes of the Peace Corps are to provide trained Americans to interested countries in need of middle-level manpower and to promote understanding between the people of the United States and the peoples served.

Volunteers engage in a variety of activities at the request of host countries. Most volunteers are working in community development, both urban and rural, and teaching at all school levels. Prior to overseas assignment, each volunteer is given intensive training designed to develop required skills, to provide a knowledge of the country to which he will be sent, to develop his language abilities and to assure physical fitness for service overseas. During training all prospective volunteers are carefully evaluated through continuous observation to ensure that those selected for overseas assignment are suited for service. 36,200 Since most of the training facilities and prospective volunteers are available during the summer months, planning and budgeting are based on a "program year" 37,572 which runs from the beginning of September through the end of August.

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1965 1966 estimate estimate

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Total obligations, Office of Economic
Opportunity

1,004

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1,372

39,600

For expenses necessary to enable the President to carry out the provisions of the Peace Corps Act (75 Stat. 612), as amended,

1. Volunteer and project costs. This activity includes all costs directly associated with volunteers in carrying out approved programs. Provision is made under this head for the medical care of volunteers overseas, the research program and voluntary service programs, formerly included in administration and program support. The number of volunteers in training and overseas will

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Requests from countries for Peace Corps volunteers continue to exceed the supply. The proposed increase of 2,080 volunteers for a total of 17,060, represents an expansion consistent with the policies that have resulted in the successful execution of this program. Programing criteria limit projects to those which are consistent with the purposes of the Peace Corps Act, and which can be manned by anticipated available volunteers of the highest caliber.

The largest number of volunteers during 1966 will be serving or training for Latin American countries. Requests from Latin American countries continue for large numbers of middle-level workers in rural and urban community development, agriculture, and education.

Volunteers for African countries will increase by 880 during 1966 to a total of 5,780. The emphasis will continue to be largely in teaching though additional volunteers will work in community development and agriculture.

In the Far East and in North Africa, Near East and South Asia regions, additional volunteers will be engaged principally in education, as well as agriculture and community development.

2. Administrative expenses (limitation).-Includes all expenses related to programing, recruitment, selection, direction of training, and the management of the Peace Corps, both in Washington and overseas. An increase in the 1965 limitation for administrative expenses will be sought to provide for increased travel requirements, administrative support by other Government agencies, and other obligations.

Object Classification (in thousands of dollars)

Total number of permanent positions..
Full time equivalent of other positions..
Average number of all employees..
Average GS grade..
Average GS salary..

Average grade, grades established by the
Foreign Service Act of 1946, as amended
(22 U.S C. 801-1158) (as amended Public
Law 88-426):

Foreign Service Reserve.. Foreign Service Staff Average salary, salary established by the

Foreign Service Act of 1946, as amended (22 U.S.C. 801-1158) (as amended Public Law 88-426) (22 U.S.C. 867 and 22 U.S.C. 870 - (a)):

Foreign Service Reserve.

Foreign Service Staff..

Average grade, positions established by the
Director, Peace Corps..
Average salary, positions established by the
Director, Peace Corps....

Intragovernmental funds:

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ADVANCES AND REIMBURSEMENTS Program and Financing (in thousands of dollars)

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Public Law 88-94 amended the Philippine War Damage Act to provide for educational programs in the Philippines to be agreed upon by the presidents of the two countries. The program will be financed from certain balances of the 1963 Philippine War Damage Claims appropriation. Negotiation of the program will be carried out by the Department of State. Though funds will become available late in 1965, no activities are shown since the program plan is subject to future negotiations between the two countries.

PUBLIC WORKS ACCELERATION

General and special funds:

[PUBLIC WORKS ACCELERATION]

[For an additional amount for expenses necessary to enable the President to provide for carrying out the purposes of the Public Works Acceleration Act (76 Stat. 541), including services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), but at rates for individuals not to exceed $75 per diem, $4,000,000.1 (Public Works Appropriation Act, 1965.)

Note. Excludes $500 thousand for activities transferred in the estimates to 'Public works acceleration." Housing and Home Finance Agency. The amounts obligated in 1964 and 1965 are shown in the schedule as comparative transfers. Program and Financing (in thousands of dollars)

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1963 Unpaid undelivered orders... 257, 101 Advances.--.

1964 adjustments 1964 1965 1966 -8,652 301,059 13,975 542

Total selected resources.

284 257,385 -8,652 301,601 13,975

These funds enabled the President to relieve unemployment and spur economic expansion in eligible areas of high unemployment or low income. This was accomplished by accelerating both Federal assistance to local public works and Federal public works projects. The program was carried out by the Federal agencies responsible for the several portions of the program and coordinated by the Secretary of Commerce with the assistance of the Area Redevelopment Administration.

1. State and local projects.-Grants were made to eligible State and local governments for public works, primarily water and sewage systems, waste treatment works, hospital additions, and related health facilities. Grants were for 50% of the project costs, although areas of most severe unemployment were eligible for grants up to 75%. Local recipients were required to increase local expenditures for public works by at least the amount of the local contribution.

2. Direct Federal projects.—Public works projects which were the direct responsibility of Federal agencies were accelerated in eligible areas. Such projects covered a wide variety of activity including improvement of facili ties, small flood control and erosion projects, forest and other conservation work, and recreation facilities, etc.

3. Administration.-Funds were provided for those administrative expenses which could not be absorbed by the agencies responsible for the larger programs and by the coordinating agency.

Object Classification (in thousands of dollars)

1. State and local projects

313,745

2. Direct Federal projects..

81,815

3. Administration....

1,945

269,815 18,835 601

13,975

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