12

FINANCIAL EFFECT OF HOUSE ACTION

The House has voted $3,935,700 for the Commission for 1953, which is $604,300 less than was requested in the President's budget, and $395,225 less than funds expected to be available for the current year, computed as follows:

Funds available for the current year are expected to yield 722 man-years of employment. The President's budget provided for an increase of but 22 average positions, a most modest request in view of existing backlogs and prospective but uncontrollable new work in the budget year.

House action, however, not only would eliminate the small increase requested but would require a substantial reduction of personnel from the inadequate 1952 level.

Were dollar cuts applied as computed by the House committee, the funds available for personal services would permit the employment of an average of 663 persons. Compliance with the Jensen rider would then force attritional reduction further to 597 which would become the employment ceiling.

However, it would be entirely unrealistic to attempt to reduce all other items of expense, other than rents and utility services, by one-third. Since such items include many irreducible expenses, such as fixed communications charges, minimum stocks of common items, repairs to equipment, etc., it is unlikely that they could be reduced but slightly below current-year levels. Therefore, only 647 employees could be averaged with salary funds available, and operation of the Jensen rider would force a further reduction to an ultimate level of 581.

Thus, although the Congress authorized employment of 835 as late as 1949, the Commission would have been forced to reduce authorized staff by 254 employees, or over 30 percent, in the short span of 4 years, during which time there has been a consistent general increase in workload.

The committee's attention is invited to chart A, on the following page, which shows the downward trend in manpower during the postwar fiscal years, and to chart B, following, which demonstrates the reasons for that trend, i. e., decreasing appropriations accompanied by rising salary costs. Were these factors associated with concomitant decreases in workload, there would be no cause for alarm. Unfortunately, however, that the reverse is true is easily demonstrable.

EFFECTS ON PROGRAM GENERALLY

Since the programs contemplated by the President's budget were already trimmed to rock bottom, and would barely permit of the conduct of only the bare minimum essential activities required by law, the further reduction proposed by the House would have drastic and far-reaching consequences.

It is desired to reemphasize the fact that the Commission lacks the latitude for shifting emphasis on programs which characterizes some of the larger agencies. Even with an appropriation in the full amount requested, the Commission cannot allocate to any given activity the funds and staff necessary to place it, and maintain it, on a current basis without further reducing, or even eliminating, one or more other functions which have been prescribed by the Congress. Moreover, the great bulk of the Commission workload comes to it in the form of applications, petitions, and complaints which require the Commission to take action. Some of these actions have statutory time limitations.

The reductions proposed by the House can only result in vastly increased backlogs, inadequate service to the public and to the utilities regulated, and/or unavoidable elimination of activities with which the Commission has been charged by law.

There follow brief descriptions of the effect of the House action on some of the more important activities of the Commission. It should be noted, however, that the exclusion of any given activity from this discussion should not be interpreted as meaning that it would not be affected by the House cut. As a matter of fact, every activity of the Commission would necessarily be affected, in varying degrees.

95711-52-23

Enclosed are additional justifications, including changes requested by page and line, as requested in your letter. Such additional information as may be desired in connection with our request will, I am confident, be developed in tomorrow's hearing.

Respectfully yours,

Enclosure.

THOMAS C. BUCHANAN, Chairman.

SALARIES AND EXPENSES

1952,

(Estimate 1953, $4,540,000 (includes "Flood-control surveys"); act $4,005,325 (includes "Salaries and expenses," $3,805,325, and "Flood-control surveys," $200,000); supplementals pending total $325,600)

(P. 14, lines 6, 7, and 9; p. 47, line 3; p. 63, lines 4 through 22; p. 66; p. 67, lines 1 through 6)

(1) Page 14, line 6, strike out "$180,000" and insert in lieu thereof "$270,000”the estimate, or an increase of $90,000 in the limitation.

(2) Page 14, line 7, strike out "one" and insert in lieu thereof "two"- the estimate, or an increase of one in the number of vehicles which may be purchased. (3) Page 14, line 9, strike out "$3,935,700" and insert in lieu thereof "$4,540,000”- the estimate, or an increase of $604,300 in the appropriation. (4) Page 47, line 3, strike out "thirty-five" and insert "fifteen"-a decrease of 20 in the number of employees to be served by each personnel employee. (5) Page 63, lines 4 through 22, strike out section 401 in its entirety.

(6) Page 66, and page 67, lines 1 through 6, strike out section 406 in its entirety. The following pertinent statements are included in House Report No. 1517 relative to the appropriations for fiscal year 1953:

(P. 2)

66* * * In effecting this reduction the committee has required the absorption in 1953 of the full amount of funds requested to meet Pay Act increases for the fiscal year 1952, it has denied funds for new positions, and has, generally, effected a reduction of about one-third in the estimates for Other obligations,' including such items as travel, communications, printing and binding, and so forth, and excepting rents and utilities."

(P. 3)

"The committee is convinced that there is serious abuse in connection with the use of funds for travel. Many field visits can be avoided, and meetings of regional and other field personnel in the District of Columbia can be dispensed with, without impairing the efficiency of the service. Strict supervision of travel authorizations should be required by heads of agencies. To require economy in this operating cost a limitation has been placed on each appropriation in the bill which will effect a saving of one-third of the amount for this purpose submitted in the budget estimates."

(P. 8)

"The committee has allowed $3,935,700 for salaries and expenses of this Commission which reflects a net reduction of $604,300 in the budget estimate. In arriving at this reduction the committee has required absorption in 1953 of the full amount of pay-act funds requested in 1952, it has denied a request for new positions totaling $126.000, and it has effected a substantial reduction in funds requested for 'Other obligations.""

FINANCIAL EFFECT OF HOUSE ACTION

The House has voted $3,935,700 for the Commission for 1953, which is $604,300 less than was requested in the President's budget, and $395,225 less than funds expected to be available for the current year, computed as follows:

Funds available for the current year are expected to yield 722 man-years of employment. The President's budget provided for an increase of but 22 average positions, a most modest request in view of existing backlogs and prospective but uncontrollable new work in the budget year.

House action, however, not only would eliminate the small increase requested but would require a substantial reduction of personnel from the inadequate 1952 level.

Were dollar cuts applied as computed by the House committee, the funds available for personal services would permit the employment of an average of 663 persons. Compliance with the Jensen rider would then force attritional reduction further to 597 which would become the employment ceiling.

However, it would be entirely unrealistic to attempt to reduce all other items of expense, other than rents and utility services, by one-third. Since such items include many irreducible expenses, such as fixed communications charges, minimum stocks of common items, repairs to equipment, etc., it is unlikely that they could be reduced but slightly below current-year levels. Therefore, only 647 employees could be averaged with salary funds available, and operation of the Jensen rider would force a further reduction to an ultimate level of 581.

Thus, although the Congress authorized employment of 835 as late as 1949, the Commission would have been forced to reduce authorized staff by 254 employees, or over 30 percent, in the short span of 4 years, during which time there has been a consistent general increase in workload.

The committee's attention is invited to chart A, on the following page, which shows the downward trend in manpower during the postwar fiscal years, and to chart B, following, which demonstrates the reasons for that trend, i. e., decreasing appropriations accompanied by rising salary costs. Were these factors associated with concomitant decreases in workload, there would be no cause for alarm. Unfortunately, however, that the reverse is true is easily demonstrable.

EFFECTS ON PROGRAM GENERALLY

Since the programs contemplated by the President's budget were already trimmed to rock bottom, and would barely permit of the conduct of only the bare minimum essential activities required by law, the further reduction proposed by the House would have drastic and far-reaching consequences.

It is desired to reemphasize the fact that the Commission lacks the latitude for shifting emphasis on programs which characterizes some of the larger agencies. Even with an appropriation in the full amount requested, the Commission cannot allocate to any given activity the funds and staff necessary to place it, and maintain it, on a current basis without further reducing, or even eliminating, one or more other functions which have been prescribed by the Congress. Moreover, the great bulk of the Commission workload comes to it in the form of applications, petitions, and complaints which require the Commission to take action. Some of these actions have statutory time limitations.

The reductions proposed by the House can only result in vastly increased backlogs, inadequate service to the public and to the utilities regulated, and/or unavoidable elimination of activities with which the Commission has been charged by law.

There follow brief descriptions of the effect of the House action on some of the more important activities of the Commission. It should be noted, however, that the exclusion of any given activity from this discussion should not be interpreted as meaning that it would not be affected by the House cut. As a matter of fact, every activity of the Commission would necessarily be affected, in varying degrees.

95711-52-23