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WELFARE APPROPRIATIONS FOR 1960

HEARINGS

BEFORE THE

SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS

UNITED STATES SENATE

EIGHTY-SIXTH CONGRESS

FIRST SESSION

ON

H.R. 6769

MAKING APPROPRIATIONS FOR THE DEPARTMENTS OF
LABOR AND HEALTH, EDUCATION, AND WELFARE, AND
RELATED AGENCIES, FOR THE FISCAL YEAR ENDING

JUNE 30, 1960, AND FOR OTHER PURPOSES

Printed for the use of the Committee on Appropriations

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON : 1959

41001

DOCUMENTS

SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS

LISTER HILL, Alabama, Chairman DENNIS CHAVEZ, New Mexico

THOMAS H. KUCHEL, California RICHARD B. RUSSELL, Georgia

MARGARET CHASE SMITH, Maine WARREN G. MAGNUSON, Washington ROMAN L. HRUSKA, Nebraska JOHN STENNIS, Mississippi

GORDON ALLOTT, Colorado JOHN O. PASTORE, Rhode Island

STYLES BRIDGES, New Hampshire, A. S. MIKE MONRONEY, Oklahoma

ex officio ALAN BIBLE, Nevada ROBERT C. BYRD, West Virginia CHAIRMAN CARL HAYDEN, Arizona, ex officio

HERMAN E. DOWNEY, Clerk to Subcommittee

II

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U.S. SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, D.C. The subcommittee met, at 10 a.m., pursuant to notice, in room F-82, the Capitol, Hon. Lister Hill (chairman of the subcommittee) presiding. Present: Senators Hill, Chavez, Stennis, Byrd, and Hayden.

DEPARTMENT OF LABOR

OFFICE OF THE SECRETARY

STATEMENT OF HON JAMES P. MITCHELL, SECRETARY OF LABOR;

ACCOMPANIED BY JAMES T. O'CONNELL, UNDER SECRETARY OF LABOR; JAMES E. DODSON, ADMINISTRATIVE ASSISTANT SECRETARY; AND V. S. HUDSON, DEPUTY ADMINISTRATIVE ASSISTANT SECRETARY

PROGRAM AND FINANCIAL NEEDS

Senator HILL. The committee will come to order.

We are honored to have with us this morning the Secretary of Labor, James P. Mitchell.

Mr. Secretary, we shall be pleased to hear from you at this time. Secretary MITCHELL. Mr. Chairman, I have a prepared statement which I wish to read.

Mr. Chairman and members of the committee, I appreciate this opportunity to present the department's program and financial needs for 1960.

I would like to deviate to some extent from the pattern I have used in the past of talking on each bureau's appropriation estimate. I think that the committee is well aware of the activities of the several bureaus and detailed testimony will be presented by the appropriate bureau head on each appropriation.

Therefore, this presentation is directed toward the major changes between 1959 and 1960.

FINANCIAL ANALYSIS OF THE TOTALS The total departmental estimate for 1960 is $571,615,400 as compared to $1,220,475,015, estimated to be available in 1959. This is a decrease of $648,859,615.

1 497

Of the total 1960 estimate $45,931,400—about 8 percent—is for the operation of the Department of Labor at the Federal level. The balance is for grants to States, or for benefit payments to unemployed or injured workers covered under various Federal statutes.

DECREASES A. The expiration of the law providing for temporary unemployment compensation:

By way of explanation, since the submission of these estimates Public Law 86-7 has been enacted providing for the extension of temporary unemployment compensation benefit payments to June 30, and the supplemental appropriation bill now pending in the Senate makes the unexpended balances of 1958 fiscal year appropriation for temporary unemployment compensation available through September 30, 1959.

This will provide funds for both benefit payments and for the liquidation of the program. It is now estimated that there will be unexpended at the close of this program $142,354,500.

B. An anticipated decrease in unemployment insurance payments to veterans and federal employees:

C. Nonrecurring employee compensation benefit payments: In arriving at our 1960 budget request we have assumed that supplemental funds for 1959 will be made available to cover

(a) 1959 Pay Act costs, and

(6) New legislation enacted by the last session of Congress on maritime safety, pension welfare plans disclosure, and per

manent unemployment compensation for ex-servicemen. In addition, there will be a nonrecurring item of employee's compensation benefits to widows of reservists covered under the Federal Employee Compensation Act.

INCREASES

The major dollar changes are as follows: (a) $91,805 for increased postal rates.

(6) $987,500 to annualize the cost of the new legislation enacted by the last session of Congress.

(c) $13,150,000 for a variety of uncontrollable costs applicable to the State employment security program—this is offset by program decrease of $10,042,000, leaving a net change of $3,108,000.

(d) $252,500 for the cost of converting certain statistics to a new standard industrial code applicable to all Government agencies.

(e) $132,795 for the extra day of pay in 1960.
(f) $145,000 for improvement of the Consumer Price Index.

(9) $886,000 due to the transfer of the labor force data program from the Department of Commerce and for improving the program of determining labor requirements.

The first five items listed are normally considered beyond administrative control since they are caused by some legislative action or are due to a rise in fixed operating costs.

PROPOSED PROGRAM IMPROVEMENTS I would now like to discuss some major areas of program improvement.

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