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wk;4-e House (1-.3g) osn https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis y- cep÷eri"\co r g Collection: Paul A. Volcker Papers Call Number: MC279 Box 9 Preferred Citation: White House Correspondence, No. 1-35, 1981 January-September; Paul A. Volcker Papers, Box 9; Public Policy Papers, Department of Rare Books and Special Collections, Princeton University Library Find it online: http://findingaids.princeton.edu/collections/MC279/c292 and https://fraser.sdouisfed.org/archival/5297 The digitization ofthis collection was made possible by the Federal Reserve Bank of St. Louis. From the collections of the Seeley G. Mudd•Manuscript Library, Princeton, NJ These documents can only be used for educational and research purposes ("fair use") as per United States copyright law. By accessing this file, all users agree that their use falls within fair use as defined by the copyright law of the United States. 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Policy on Digitized Collections Digitized collections are made accessible for research purposes. Princeton University has indicated what it knows about the copyrights and rights of privacy, publicity or trademark in its finding aids. However, due to the nature of archival collections, it is not always possible to identify this information. Princeton University is eager to hear from any rights owners, so that it may provide accurate information. When a rights issue needs to be addressed, upon request Princeton University will remove the material from public view while it reviews the claim. Inquiries about this material can be directed to: Seeley G. Mudd Manuscript Library 65 Olden Street Princeton, NJ 08540 609-258-6345 609-258-3385 (fax) mudd@princeton.edu https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ftr 1. THE WHITE HOUSE WASHINGTON DATE: 9/10/81 TO: Chairman Volcker FROM: Jack Burgess For your info XXXXXXXXX Per our conversation Other: THE WHITE HOUSE WASHINGTON September 10,1981 3 Mr. Eugene F. Paul President Minnesota National Farmers Organization Box 194 Delavan, Mn. 56023 Dear Mr. Paul: This is to acknowledge receipt of your letter of September 3 to President Reagan. Please be assured that this Administration is not actively pursuing a high interest rate policy. One of the basic components of the President's economic program is the stabilization of interest rates and the establishment of a consistent monetary policy. I am taking the liberty of forwarding copies of your correspondence to the appropriate policy officials at the Federal Reserve and here at the White House. These individuals will give every consideration to your concerns and suggestions. Thank you for taking the time to write. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sincerely, (I Jack Burgess Special Assistant to the President ... Eugene Paul Vine treleitle Pt f Bernard Dietz Box 194 Delayan, Mn. 56023 507-854-3676 Pe 3, Box 193 nna, Mn. 55060 5g7651-1382 i ,,':' '. . Ipt ::0,!retarlf Trcarurrr Cletus Tacheny Don Wiese Route 3, Box 4 Mankato, Mn. 5 507-625-5862 Route 2, Box 240 Comfrey, Mn. 56019 507-877-2721 National Farmers Organization MINNESOTA STATE BOARD FOP AGRICUL rURE NATIONAL FROM BOARD MINNESOTA September 3, 1981 Eugene Paul 194 Delayan, Mn. 507-854-3676 56023 President Ronald Reagan White House 1600 Penn Ave. Washington, DC 20500 David Pawlitschek Route 1, Lowry, Mn. 56349 Q2-283-5164 Dutch Mueller Route 2 Etelgrade, Kinn. 612-243-4206 Mr. President; 56312 I am writing to express my concern regarding the high interest rates I am forced to pay at this time. It -is --impossible to operate a farming operation or raise a family when I am required to pay 19 to 20% interest on the money I borrow. District Presidents First District Bernard Dietz Route 3, Box 193 Owatonna, Mn. 55060 507-451-1382 I do not buy the theory that high interest rates are the cure for inflation; rather I believe these rates are .set to make money for those who already have money. ''econd District George Q. Schtm•Ig fox 51 aston, Minn.56025 507- 787- 2546 1 .7ixth District Carmen Fernholz Route 2, Box 9 A Yadison, 'inn. 56256 612-598-3010 Se.)3nth District Bill Christensen Box 431 Battle Lake, Mn. 218-864-5196 Sincerely, Ezte7eAv. 56515 - :7;Ith District Leo McKenzie Route 2, Box 168 P'raham, Mn. 55006 612-629-2693 . • • .`*tate Publicity Chairrym riirs. Gerald P. Blonigen Route 1, Paynesville; Mn. 56362 612-548-4372 ' 7tate Legislative Pep. George Matson Route 1 'Frimont Mn. 56176 507-639-6241 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I ask that you use your influence to correct this situation. I would be interested in your position and the course of action you will take. Eugene F. Paul, President, Minnesota National Farmers Organization EFP:kf • EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASH I NGTON. D.C. 20503 August 12;110 TO THE HEADS Or EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS'SUBJECT: Reducing and Controlling Unnecessary Year -End Spending - C.1 As a part of this Administration's continuing commitment to eliminate unnecessary and wasteful spending, I ask you to make sure that your agency uses public funds wisely by avoiding unnecessary year-end spending. I cannot over emphasize that the prevention of unneeded and unwise Federal Government spending is an essential part of our efforts to control fraud, waste, abuse, and inefficiency in Federal programs . Public funds will be used only for necessary program purposes and will not be obligated solely to commit funds before they lapse. Good procurement practices, which incl ude requirements for competition and other actions to insure that fair and reasonable prices are paid by the Governme nt, will not be disregarded in an effort to obligate funds quickly. Specifically, I ask that your agency take immediate actions to insure that: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Obligations for the fourth quarter of the fiscal year are no higher than for the third quarter, except where seasonal requirements, essential program obje ctives, or procurement lead-times justify a higher leve l; Orders for services, supplies, materials, and equipment are not more than needed to meet approved and essential program objectives; Grants are subjected to rigorous review and are not made just to keep funds from lapsing; and Production or procurement of periodicals, pamphlet s, and audiovisual products (OMB Bulletin No. 81-16, OMB Circulars No. 3 and No. 114), procurement of cert ain equipment (OMB Bulletin No. 81-9), procurement of consulting and related services (OMB Bulletin No. 81-8, OMB Circular No. A-120) and travel and tran sportation of persons (OMB Bulletin No. 81-7) are in conforma nce with the respective OMB instructions. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 Contracting officers, prpgram managers, and policy officials c.:13 are responsible for initiating or reviewing procurement and grdnt actions should carry out their responsibilities in a way that assures compliance with this guidance. Inspectors General have been asked to pay particular attention to year-end spending this year. Inspectors General personnel, auditors, and legal counsel should consider noncompliance with the aforementioned requirements to be an indication of waste. The Office of Federal Procurement Policy will soon issue Policy Letter 81-1 requiring each agency to establish an advance procurement planning system, review procedures for fourth quarter spending, and lead-time and cut-off dates for consideration of procurement requests. These requirements will be useful management controls to assist agencies in avoiding future year-end spending and I ask that you and your staff give a high priority to installing these controls as soon as possible. your full cooperation and personal attention to save the taxpayers as much money as possible in support of the President's fiscal objectives. I count on David A. Stockman Director 101-1 33-- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 110 • EXECUTIVE OFFICE OF THE PRFSIDEN4"I les https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ' OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 OFFICE OF FEDERAL . LICY PROCUREMENT FO POLICY LETTER 81-1 MY 19'31 flUG 14 T111: 53 AUGritgr;i9i31 ' TO THE. HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Procurement Procedures, Advance Procurement Planning, and Review of End-of-Year Purchases It is the responsibility of the head of each agency to assure efficient and procurement. Consistent with that responsibility is an obligation to reduce wasteful_ practices resulting from hurried or unnecessary end-of-year procurement. In carrying out these responsibilities, the Head of each Executive Department or Establishment shall establish the following management controls: I 1. Procurement procedures providing lead time and cut-off dates. Each agency shall develop procedures that allow sufficient lead time to prepare solicitations, obtain and evaluate bids or proposals, audit, negotiate, and make contract awards in an orderly manner. The procedures shall specify the lead time required and establish firm cut-Sff dates for submission 555ocurement offices of requests for contract action to be completed by the end of a fiscal year. The lead times and cut-off dates may vary with the type of contract action and dollar thresholds. Exceptions to the lead time and cutoff date procedures should be kept to a minimum and approved only unI- r extraordinary circumstances. 2. Advance Procurement Planning. Agencies shall issue procedures that require an Advance Procurement Planning System (APP) for each activity. The procedures shall include: Establishment of a specific threshold procurements are to be considered major; above which Development and maintenance of an advance procurement plan to cover major procurement requirements and other requirements with high waste vulnerability, such as consulting services, certain equipment, periodicals, pamphlets, or audiovisual products. The plan should be developed well in advance of the fiscal year in which the acquisition will be made; p. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 Flexibility to allow revisions to the plan, but only to reflect budget changes, emergencies, and changes in program direction; Procurement planning that begins concurrently with the agency budget process; A requirement that needs are specified in a form that permits effective competition and innovation; A means to resolve disagreements between procurement and project offices; Close control of major and high waste vulnerability purchases to assure that they are consistent with the advance procurement plan; and An ongoing program to assess the appropriateness of the 'methods used to satisfy needs, including cost effectiveness, whether gold-plating will result, and life cycle costing, where appropriate. 3. Review procedures for the last quarter spending. Each agency shall develop review procedures that require: (a) close control of purchases made in the last quarter to assure that they are consistent with the advance procurement plan, (b) reevaluation of the need for purchases made in the last quarter, (c) good procurement practice and accountability to assure that contracts are awarded only if prices are reasonable, and (d) award of contracts on the basis of competition unless award on some other basis is significantly to the advantage of the agency. 4. Contract Action Log. Each procuring activity shall keep a log of major or high waste vulnerability contract actions. Within 60 days after the effective date of this letter the head of each agency shall report to OFPP the action taken to implement the provisions of this Policy Letter. The report shall describe the advance procurement planning process, the procedures to require lead time and cut-off dates, the review procedures, and the implementation of the contract log. For further information with respect to this policy directive, contact Mr. Jack Nadol, Assistant Administrator for Procurement Practices, telephone 395-3455. EFFECTIVE DATE: This Policy Letter is effective August 28, 1981. CONCURRENCE: This letter has been concurred in by the Director of OMB. 1on4.1d E. Sowle AdrAinistrator I. vo, , THE WHITE HOUSE WASHINGTON , • 1981 nuG 1 4 r1 l,: •• OFFV:' August 7, 1981 MEMORANDUM FOR: THE HEADS OF DWA7ENTS AND AGENCIES FRal Virginia H. Knauer Special Assistant to t SUBJECT: President International Year of Disabled Persons Outstanding Agency Award With a theme of "Full Participation and Equality" for the disabled citizens of the world, the General Assembly of the United Nations has declared 1981 as the International Year of Disabled Persons (IYDP). The Year is acknowledging and promoting the contributions and capabilities of the world's 450 million disabled persons, of whom 36 million are Americans. It also is focusing attention on the problems disabled people face as they integrate themselves into society. Early in 1981, the Federal Interagency Committee for IYDP received your plans for activities and programs for observing the Year. Overall, these planned activities suggest a high degree of commitment on the part of agency heads and their staffs. Senior White House staff believe that these efforts should be both supported and acknowledged. IYDP has increased information exchange between agencies and encouraged increased coordination of programs for disabled people. In order to acknowledge the achievements of the Federal Government in regards to IYDP, the Federal Interagency Committee, in concert with senior White House staff, will sponsor an Awards Ceremony in WashingtoaLJILL At this ceremony, appropriate recognition wfirlreexiended-ToTheads—cif— agencies and those outstanding individuals who have made major contributions to IYDP. Consistent with this, I encourage all. agencies to identify and document your achievements at national, regional and local levels. It is requested that nominations for.the,achievement awards be forwarded to the Federal Secretariat, Federal InferagencTCEMMitiee:by November 1, 1981 for review. A follow-up memo from Harold O'Flaherty will be sent to your Federal Interagency Committee representative outlining the criteria and procedures for documenting your agency's activities and programs. Any questions or comments may be referred to his office, 245-0170. It may be helpful to meet with your FIC representative to discuss your agency's IYDP activities and your plans to document these efforts. Thank you for your continued support and assistance with this major White House initiative. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1011 BOARD OF GOVERNOR.. OF THE FEDERAL RESERVE SYSTEM WASHINGTON, O. C. 20551 OFFICE OF STAFF DIRECTOR FOR MANAGEMENT November 2, 1981 Mr. Harold O'Flaherty Executive Director Federal Interagency Committee for the International Year of Disabled Persons 330 C. Street, S.W. Room 3124 Washington, D.C. 20201 Dear Mr. O'Flaherty: The Board of Governors of the Federal Reserve System is submitting the following report of contributions and activities during the observance of the International Year of Disabled Persons. This report has been prepared in response to your request of August 19, 1981. As the Board's representative to the Federal Interagency Committee, it has been a pleasure to work with you and your staff in the development of the Board's program for the handicapped. Each activity that has been undertaken has been designed not only to celebrate this special year but to contribute to the program's success in the years to come. Thank you for your valuable assistance. Sincerely, /- Susan K. Fansler Handicapped Program Coordinator Enclosure ir A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Report of Activities During the International Year of Disabled Persons January 1, 1981 to December 31, 1981 Board of Governors of the Federal Reserve System October 30, 1981 Introduction The following report summarizes the activities of the Board of Governors and its staff in Washington during the International Year of Disabled Persons (IYD). Information regarding the IYDP was disseminated to the twelve Federal Reserve Banks and each Bank developed its own program for the year's observance independent of the Board's program. Affirmative Action The 1982 Affirmative Action Plan for Handicapped Individuals contains the essential elements of affirmative action program planning. These elements include: an onging system of monitoring the representation of the workforce by disability through a self-identification process; numerical goals for employment of persons with disabilities; a special recruitment plan with strategies for accomplishment of employment goals; an analysis of selection barriers; and goals and timetables for removal of physical barriers on the Board's facilities. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis As of June 30, 1981, thirty-one (31) employees or two percent (2%) of the Board's workforce of 1538 people identified themselves as having one or more https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of the disabilities identified in the nine disability categories listed on Standard Form 256 (Office of Personnel Management). The numerical goals established for S. will be based on the Board's past performance and a realistic projection of opportunities. . Special recruitment activities during 1981 have involved establishing and maintaining contacts with local community organizations and federal recruitment personnel and participating in the Job Fair held by the Mayor's Committee on Handicapped Individuals at the Capital Hilton on October 20, S. A Handicapped Placement Coordinator has been designated in the Board's recruiting staff and is responsible for S. velopment and implementation of a Special Recruiting Plan. . Recent analysis of the Board's faces using the Equal Employment Opportunity Commission's Form for Analysis of Accessibility indicates that the two buildings housing the Board and its staff are seventy percent or have "good accessibility." I. accessible A timetable will be established in the 1982 Affirmative Action Plan for removal of all remaining physical barriers. In conjunction with the assessment and monitoring of a selection procedures for compliance with the Uniform Selection GuiI.11 itional attention will be given to the review of personnel procedures that may be impediments to the placement of handicapped individuals. a -3- Prevention, Rehabilitation and Development The Board's efforts in the area of prevention of disability, the rehabilitation of disabled persons and career development for disabled employees have increased during the IYDP and will continue in the years that follow. • As part of an ongoing employee relations program, "The Employee Assistance Program" (EAP) has been established to help employees who are experiencing problems related to alcohol abuse, drug abuse or emotional distress. The EAP provides counseling and referral services to appropriate community resources for professional help. • Interpreter services have been provided to three employees who are hearing impaired in developmental and on-the-job training programs during the year. • The..Board's fitness programs offer seminars on health and fitness related matters; exercise and dance classes; and jogging, squash, tennis, racquetball, and basketball associations. Demonstration Projects, Awareness Activities and Program Accessibility The observance of the IYDP provided a focus for a number of educational opportunities taking place during 1981. The education and awareness efforts will continue as an important part of the Board's creation of an environment free of the physical and attitudinal barriers that traditionally confront the disabled in the workplace. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis U , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . The EEO Training Course for Managers and Supervisors contains a section on the legal and regulatory protections for the disabled and attempts to sensitize them in the area of handicapped employment. . On September 15, 1981, a seminar entitled "Disabled Persons: Attitudes, Myths and Barriers" was held for all employees. Panel participants included a deaf employee, two supervisors, a representative of the U.S. Council for the IYDP, a representative of the George Washington Job Development Laboratory, and a representative of the President's Committee on the Handicapped. Two films entitled How We Believe and Approach to Independence were screened and discussed during the two hour seminar. (A copy of the program for this activity is enclosed.) . On September 17, 1981, an exhibit of technological equipment was open to all employees. The six exhibitors were Gallaudet College, the American Council for the Blind, the Amigo Wheelchair Company, Visualtek, George Washington University Job Development Laboratory, and Maryland Computer Service. . Publicity for the IYDP has included posters and printing of articles on the handicapped in the employee newsletter, Across the Board. . Interpreter services have been made available to employees during recent Women's Week Activities, at the seminar of September 15 and at the equipment exhibition of September 17. 400 -5- Employees are being made aware that these services are available to the hearing impaired as needed. Conclusion The activities associated with the Federal Reserve Board's observance of the International Year of Disabled Persons have provided an opportunity to reiterate the commitment of management to vital areas of equal employment opportunity for the handicapped. In addition, the exchange of information and experience among federal agencies and local organizations has established new partnerships in this effort to tackle attitudinal barriers that have proven to be far more difficult to overcome than the physical barriers that have existed. Though the IYDP will be ending soon, the Board's efforts in this area will not. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fie DISABLED PERSONS: ATTITUDES, MYTHS AND BARRIERS SEMINAR Tuesday September 15, 1981 Dining Room E 10:00-10:05 Welcome 10:05-10:30 Introduction of panel participants and discussion Moderator Michael D. Zullo Director of the Corporate Partnership Program, U.S. Council for IYDP Panel Maureen English Section Chief, Division of Consumer and Community Affairs James Mueller Industrial Designer, George Washington University's Job Development Laboratory Peter Thomas Graphic Communications Section Chief, Divisiou of Data Processing Carol Wisdom Graphic Designer, Graphic Communications Section, Division of Data Processing 10:30-10:55 How We Believe (film) 10:55-11:30 Discussion 10:30-11:40 Approach to Independence (film) 11:40-12:00 Discussion and Closing Remarks A TECHNOLOGICAL EXHIBITION OF AIDS Thursday September 17, 1981 Dining Room E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10:00-3:00 This exhibition, open to all employees, will be a display of aids and equipment available for disabled employees in the performance of their jobs. Eight distributors will be present to demonstrate the equipment. Mb OOP SO Films to be shown on September 15: More information on our guest panelists: How We Believe is a film made by IBM depicting management attitudes toward disabled employees. In addition, employees in various white and blue collar jobs give their impressions of their jobs, peers and managers. Michael D. Zullo, the panel moderator, is the former Corporate Program Manager for IBM's Worldwide Affirmative Action Program, the former Director of Corporate Relations for the American Coalition of Citizens with Disabilities (ACCD) and is presently the Director of the Corporate Partnership Program for the IYDP. Approach to Independence is a film featuring James Mueller, an industrial designer, who designs equipment for severely disabled people. In this film, Mr. Mueller describes how workplaces are modified. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis James Mueller is an internationally known designer, builder and evaluator of workplace accomodations and devices. He is a leader in the fields of job analysis and jab restructuring procedures and has authored two books, Accomodating the Disabled Student and Designing for Functional Limitations. •• ;;,l • ;,1) " 4 • THE WHITE HOUSE WASHINGTON 193I nur, ih r" II: 142 OFFr7,,•!.,!- I. August 7, 1981 MEMORANDUM PDR: THE HEADS OF DEPARTMENTS AND AGENCIES FROM: Virginia H. Knauer Special Assistant to t SUBJECT: President International Year of Disabled Persons Outstanding Agency Award With a theme of "Full Participation and Equality" for the disabled citizens of the world, the General Assembly of the United Nations has declared 1981 as the International Year of Disabled Persons (IYDP). The Year is acknowledging and promoting the contributions and capabilities of the world's 450 million disabled persons, of whom 36 million are Americans. It also is focusing attention on the problems disabled people face as they integrate themselves into society. Early in 1981, the Federal Interagency Committee for IYDP received your plans for activities and programs for observing the Year. Overall, these planned activities suggest a high degrce of commitment on the part of agency heads and their staffs. Senior White House staff believe that these efforts should be both supported and acknowledged. IYDP has increased information exchange between agencies and encouraged increased coordination of programs for disabled people. In order to acknowledge the achievements of the Federal Government in regards to IYDP, the Federal Interagency Committee, in concert with senior White House staff, will sponsor an .4.15ar,ds,Ceremony in Washington D.C. At this ceremony, appropriate recognition wilrBe exiended-to heads of agencies and those outstanding individuals who have made major contributions to IYDP. Consistuit wiLh this, I encourage all agencies to identify and document your achievements at national, regional and local levels. It is requested that nominations for the achievement awards be forwarded to the Federal Secretariat, Federal Interagency tbamittee,*by November 1, 1981 for review. A follow-up memo from Harold O'Flaherty will be sent to your Federal Interagency Committee representative outlining the criteria and procedures for documenting your agency's activities and programs. Any questions or comments may be referred to his office, 245-0170. It may be helpful to meet with your FIC representative to discuss your agency's IYDP activities and your plans to document these efforts. Thank you for your continued support and assistance with this major White House initiative. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3•9-' Ile SID FEDERAL INTERAGENCY COMMITTEE for the International Year of Disabled Persons 330 C Street, S.W., Room 3124, Washington, D.C. 20201 (202) 245-0170 •••••U ,. .' • • MENORANDUD,1 DATE: August 19, 1981 FOR: Federal Interagency Committ FROM: Harold O'Flaherty Executive Director SUBJECT: IYDP Outstanding Agency Award In recognition of the International Year of Disabled Persons (I/DP), the White House would like to honor those federal agencies who have made outstanding contributions during the Year. The IYDP Special Activities Subcommittee has developed criteria for these awards. The criteria follows the areas of focus outlined in the Executive Summary of Federal Involvement in IYDP, including affirmative action, prevention, rehabilitation, denonstration projects, research, program accessibility and awareness. These areas will be evaluated using the following criteria: 1. Field and headquarters involvement. 2. Internal and external analysis of programs of/for disabled people (internal refers to impact on agency disabled employees or potential employees; external involves outreach activities). 3. Long term impact or on-going effect on Agency programs (i.e. formation of committee, office or position structure, policy formulation, etc.). 4. Innovation (creative, exemplary or unique activities). We are requesting that Agency submissions for outstanding contri butions to the International Year be received no later than November 1, 1981, C.O.B. A narrative format using the above mentioned criteria should be limited to five pages, but contain substantive documentation. It will be the responsibility of the FIC representative to dissem inate this information to component agencies and/or compile agency progress reports into an award's submission. Agencies,not nernhers of the Federa l Interagency Committecishouid also be encouraged to submit a report . Agency/departmental heads have also received a letter requesting there support. (See attached). "Full Participation for All Citizens" https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Page 2 The Special Activities Subcommittee, the Co-Chairpersons and I will screen all submissions and select recipients of the IYDP Outstanding Agency Award. The awards will be presented at a planned White House ceremony. Your continued support and assistance is always appreciated. THE WHITE HOUSE WASHINGTON August 7, 1981 lifIENIORANDUNI FOR: FROM: THE HEADS OF DEPARMEfS AND AGE)CIFS • Virginia H. Knauer Special Assistant to the President G7 SUBJE=: International Year of Disabled Persons Outstanding Agency Award With a theme of "Full Participation and Equality" for the disabled citizens of the world, the General Assembly of the United Nations has declared 1981 as the International Year of Disabled Persons (IYDP). The Year is acknowledging and promoting the contributions and capabilities of the world's 450 million disabled persons, of whom 36 million are Americans. It also is focusing attention on the problems disabled people face as they integlate themselves into society. Fnrly in 1981, the Federal Interagency Committee for IYDP received your plans for activities and programs for observing the Year. Overall, these planned activities suggest a high degree of commitment on the part of agency heads and their staffs. Senior White House staff believe that these efforts should be both !-upported and acknowledged. IYDP has increased information exchange between agencies and encouraged increased coordination of programs for disabled people. In order to acknowledge the achievements of the Federal Government in regards to IYDP, the Federal Interagency Committee, in concert with senior White House staff, will sponsor an Awards Ceremony in Washington, D.C. At this ceremony, appropriate recognition will be extended to heads of agencies and those outstanding individuals who have made major contributions to IYDP. Consistent with this, I encourage all agencies to identify and document your achievements at national, regional and local levels. It is requested that nominations for the achievement awards be forwarded to the Federal Secretariat, Federal Interagency Committee, by November 1, 1981 for review. A follow-up memo from Harold O'Flaherty will be sent to your Federal Interagency Committee representative outlining the criteria and procedures for documenting your Agency's activities and programs. Any questions or comments may be referred to his office, 245-0170. It may be helpful to meet with your FIC representative to discuss your agency's IYDP activities and your plans to document these efforts. Thank you for your continued support and assistance with this major White House initiative. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIP THE WHITE HOUSE WASHINGTON 1931 nun, 1 r" II: August 7, 1981 MEMORANDUM FOR: THE HEADS OF DEPAT7NTS AND AGENCIES FROM: Virginia H. Knauer Special Assistant to tesident SUBJECT: International Year of Disabled Persons Outstanding Agency Award 41 With a theme of "Full Participation and Equality" for the disabled citizens of the world, the General Assembly of the United Nations has declared 1981 as the International Year of Disabled Persons (IYDP). The Year is acknowledging and promoting the contributions and capabilities of the world's 450 million disabled persons, of whom 36 million are Americans. It also is focusing attention on the problems disabled people face as they integrate themselves into society. Early in 1981, the Federal Interagency Committee for IYDP received your plans for activities and programs for observing the Year. Overall, these planned activities suggest a high degree of commitment on the part of agency heads and their staffs. Senior White House staff believe that these efforts should be both supported and acknowledged. IYDP has increased information exchange between agencies and encouraged increased coordination of programs for disabled people. In order to acknowledge the achievements of the Federal Government in regards to IYDP, the Federal Interagency Committee, in concert with senior White House staff, will sponsor an Awards.Ceremony in Washington D.C. At this ceremony, appropriate recognition wilrBe7Riended-IOTheads of agencies and those outstanding individuals who have made major contributions to IYDP. Consistait with this, I enc,ourage all agencies to identify and document your achievements at national, regional and local levels. It is requested that nomination“pr_the_achievement_awards be forwarded to the Federal Secretariat, Federal InteragenerCounittee,Thy November 1, 1981 for review. A follow-up memo from Harold O'Flaherty will be sent to your Federal Interagency Committee representative outlining the criteria and procedures for documenting your agency's activities and programs. Any questions or comments may be referred to his office, 245-0170. It may be helpful to meet with your FIC representative to discuss your agency's IYDP activities and your plans to document these efforts. Thank you for your continued support and assistance with this major White House initiative. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL INTERAGENCY COMMITTEE for the International Year of Disabled Persons 330 C Street, S.W., Room 3124, Washington, D.C. 20201 (202) 245-0170 MEMORANDUM DATE: August 19, 1981 FOR: Federal Interagency Committee FROM: Harold O'Flaherty Executive Director SUBJECT: IYDP Outstanding Agency Award In recognition of the International Year of Disabled Persons (I/DP), the White House would like to honor those federal agencies who have made outstanding contributions during the Year. The IYDP Special Activities Subcommittee has developed criteria for these awards. The criteria follows the areas of focus outlined in the Executive SuRmary of Federal Involvement in IYDP, including affirmative action, prevention, rehabilitation, demonstration projects, research, program accessibility and awareness. These areas will be evaluated using the following criteria: 1. Field and headquarters involvement. 2. Internal and external analysis of programs of/for disabled people (internal refers to impact on agency disabled employees or potential employees; external involves outreach activities). 3. Long term impact or on-going effect on Agency programs (i.e. formation of committee, office or position structure, policy formulation, etc.). 4. Innovation (creative, exemplary or unique activities). We are requesting that Agency submissions for outstanding contri butions to the International Year be received no later than November 1, 1981, C.O.B. A narrative format using the above mentioned criteria should be limited to five pages, but contain substantive documentation. It will be the responsibility of the FIC representative to disseminate this information to component agencies and/or compile agency progress reports into an award's submission. Agenciesi not members of the Federal Interagency Committcc,should also be encouraged to submit a report. Agency/departmental heads have also received a letter requesting there support. (See attached). "Full Participation for All Citizens" https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • .Page 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIP The Special Activities Subcommittee, the Co-Chairpersons and I will screen all submissions and select recipients of the IYDP Outstanding Agency Award. The awards will be presented at a planned White House ceremony. Your continued support and assistance is always appreciated. THE WHITE HOUSE WASHINGTON August 7, 1981 MEMORANDUM FOR: FROM: SUBJECI': THE HEADS OF DEP 'LENTS AND AGETIES • Virginia H. Knauer Special Assistant to the President G7 International Year of Disabled Persons Outstanding Agency Award With a the of "Full Participation and Equality" for the disabled citizens of the world, the General Assembly of the United Nations has declared 1981 as the International Year of Disabled Persons (IYDP). The Year is acknowledging and promoting the contributions and capabilities of the world's 450 million disabled persons, of whom 36 million are Americans. It also is focusing attention on the problems disabled people face as they integlate themselves into society. Early in 1981, the Federal Interagency Cormittee for IYDP received your plans for activities and programs for observing the Year. Overall, these planned activities suggest a high degree of commitment on the part of agency beads and their staffs. Senior White House staff believe that these efforts should be both rupported and acknowledged. IYDP has increased information exchange between agencies and encouraged increased coordination of programs for disabled people. In order to acknowledge the achievements of the Federal Government in regards to MP, the Federal Interagency Corudttee, in concert with senior White House staff, will sponsor an Awards Ceremony in Washington, D.C. At this ceremony, appropriate recognition will be extended to heads of agencies and those outstanding individuals who have made major contributions to IYDP. Consistent with this, I encourage all agencies to identify and document your achievements at national, regional and local levels. It is requested that nominations for the achievement awards be forwarded to the Federal Secretariat, Federal Interagency Committee, by November 1, 1981 for review. A follow-up memo from Harold O'Flaherty will be sent to your Federal Interagency Comrdttee representative outlining the criteria and procedures for documenting your agency's activities and programs. Any questions or comments may be referred to his office, 245-0170. It may be helpful to meet with your FIC representative to discuss your agency's IYDP activities and your plans to document these efforts. Thank you for your continued support and assistance with this major White House initiative. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Report of Activities During the International Year of Disabled Persons January 1, 1981 to December 31, 1981 Board of Governors of the Federal Reserve System October 30, 1981 .. . Introduction The following report summarizes the activities of the Board of Governors and its staff in Washington during the International Year of Disabled Persons (IYD). Information regarding the IYDP was disseminated to the twelve Federal Reserve Banks and each Bank S.veloped its own program for the year's observance independent of the Board's program. Affirmative Action The 1982 Affirmative Action Plan for Handicapped Individuals contains the essential elements of affirmative action program planning. These elements include: an onging system of monitoring the representation ... of the workforce by disability through a self-identification process; numerical is. for employment of persons with disabties; a special recruitment plan with strategies for accomplishment of employment goals; an analysis of selection barriers; and goals and timetables for removal of physical barriers on the Board's facilities. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis As of June 30, 1981, thirty-one (31) employees or twII- rcent (2%) of the Board's workforce of 1538 people identified themselves as having one or more 4r . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OD 411 -2- of the disabilities identified in the nine disability categories listed on Standard Form 256 (Office of Personnel Management). The numerical goals established for 1982 will be based on the Board's past performance and a realistic projection of opportunities. . Special recruitment activities during 1981 have involved establishing and maintaining contacts with local community organizations and federal recruitment personnel and participating in the Job Fair held by the Mayor's Committee on Handicapped Individuals at the Capital Hilton on October 20, 1981. A Handicapped Placement Coordinator has been designated in the Board's recruiting staff and is responsible for development and implementation of a Special Recruiting Plan. . Recent analysis of the Board's facilities using the Equal Employment Opportunity Commission's Form for Analysis of Accessibility indicates that the two buildings housing the Board and its staff are seventy percent (70%) accessible or have "good accessibility." A timetable will be established in the 1982 Affirmative Action Plan for removal of all remaining physical barriers. . In conjunction with the assessment and monitoring of a selection procedures for compliance with the Uniform Selection Guidelines, additional attention will be given to the review of personnel procedures that may be impediments to the placement of handicapped individuals. I: Prevention, Rehabi The Board's efforts in Dev IIpreveII.isability, the rehabilitation of disabled persons and career development for disabled employees have increased during the IYDP and will continue in the years that follow. • As part of an ongoing employee relations program, "The Employee Assistance Program" (EAP) has been established to help employees who are experiencing problems related to alcohol abuse, drug abuse or emotional distress. The EAP provides counseling and referral services to appropriate community resources fI r professional help. • Interpreter services have been provided to three employees who are hearing impaired in developmental and on-the-job training programs during the year. • The Board's fitness programs offer seminars on health and fitness related matters; exercise and dance classes; and jogging, squash, tennis, racquetball, and basketball associations. Demonstration Projects, Awareness Activities and Program Accessibility The observance of the IYDP provided a focus for a number of educational opportunities taking place during 1981. The education and awareness efforts will continue as an important part of the Board's creation of an environifient free of the physical and attitudinal barriers that traditionally confront the disabled in the workplace. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ... 2, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -4The EEO Training Course for Managers and Supervisors contains a section on the legal and regulatory protections for the disabled and attempts to sensitize them in the area of handicapped employment. . On September 15, 1981, a seminar entitled "Disabled Persons: Attitudes, Myths and Barriers" was held for all employees. Panel participants included a deaf employee, two supervisors, a representative of the U.S. Council for the IYDP, a representative of the George Washington Job Development Laboratory, and a representative of the President's Committee on the Handicapped. Two films entitled How We Believe and Approach to Independence were screened and discussed during the two hour seminar. (A copy of the program for this activity is enclosed.) . On September 17, 1981, an exhibit of technological equipment was open to all employees. The six exhibitors were Gallaudet College, the American Council for the Blind, the Amigo Wheelchair Company, Visualtek, George Washington University Job Development Laboratory, and Maryland Computer Service. . Publicity for the IYDP has included posters and printing of articles on the handicapped in the employee newsletter, Across the Board. . Interpreter services have been made available to employees during recent Women's Week Activities, at the seminar of September 15 and at the equipment exhibition of September 17. - -5Employees are being made aware that these services are available to the hearing impaired as needed. Conclusion The activities associated with the Federal Reserve Board's observance of the International Year of Disabled Persons have provided an opportunity to reiterate the commitment of management to vital areas of equal employment opportunity for the handicapped. In addition, the exchange of information and experience among federal agencies and local organizations has established new partnerships in this effort to tackle attitudinal barriers that have proven to be far more difficult to overcome than the physical barriers that have existed. Though the IYDP will be ending soon, the Board's efforts in this area will not. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A DISABLED PERSONS: ATTITUDES, MYTHS AND BARRIERS SEMINAR Tuesday September 15, 1981 Dining Room E 10:00-10:05 Welcome 10:05-10:30 Introduction of panel participants and discussion Moderator Michael D. Zullo Director of the Corporate Partnership Program, U.S. Council for IYDP Panel Maureen English Section Chief, Division of Consumer and Community Affairs James Mueller Industrial Designer, George Washington University's Job Development Laboratory Peter Thomas Graphic Communications Section Chief, Division of Data Processing Carol Wisdom Graphic Designer, Graphic Communications Section, Division of Data Processing 10:30-10:55 How We Believe (film) 10:55-11:30 Discussion 10:30-11:40 Approach to Independence (film) 11:40-12:00 Discussion and Closing Remarks A TECHNOLOGICAL EXHIBITION OF AIDS Thursday September 17, 1981 Dining Room E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10:00-3:00 This exhibition, open to all employees, will be a display of aids and equipment available for disabled employees in the performance of their jobs. Eight distributors will be present to demonstrate the equipment. Films to be shown on September 15: How We Believe is a film made by IBM depicting management attitudes toward disabled employees. In addition, employees in various white and blue collar jobs give their impressions of their jobs, peers and managers. Approach to Independence is a film featuring James Mueller, an ed industrial designer, who designs equipment for severely disabl people. In this film, Mr. Mueller describes how workplaces are modified. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis More information on our guest panelists: Michael D. Zullo, the panel moderator, is the former Corporate Program Manager for IBM's Worldwide Affirmative Action Program, the former Director of Corporate Relations for the American Coalition of Citizens with Disabilities (ACCD) and is presently the Director of the Corporate Partnership Program for the IYDP. James Mueller is an internationally known designer, builder and evaluator of workplace accomodations and devices. He is a leader in the fields of job analysis and job restructuring procedures and has authored two books, Accomodating the Disabled Student and Designing for Functional Limitations. • THE WHITE HOUSE WASHINGTON August 7, 1981 193I nuG I 0 fl 10: 09 orricE The Pon(;rable Paul A. Volcker Chairran Federal reserve System Twentieth. and Constitution Avenue, N.W. 1.;ashinrton, D.C. 2C551 Dear Vr. Chairran: Enclosed is a copy of the Consumer's hesource Handbook, developed by the U.S. Office of Consumer Affairs in cooperation with 2C Federal departments and agencies. The Handbook has become a useful cost-effective tool for Congressional staff, Federal, state and local government offices and others in providing information, resolving complaints, and making referrals. It has been lauded by business, the media, government, and consumers. 1,;e believe the Handbook has significantly reduced the number of misdirected inquiries to Federal offices, thus reducinv the personnel and financial resources needed to process these inquiries either through phone calls or correspondence. A number of agencies have expressed interest in the updated i:3ndbool‹, and perhaps it has already been brought to your attention. ?lany agencies have found it useful to include the Hnndbook as part of materials distributed at meetings, conferences, seminars, and other contacts with the public. We are presently working with your staff to streamline the Handbook and provide updated information about your programs and services. To continue the significant role and impact of the Handbook on improving the handling of consumer complaints and inquiries, we need the support and cooperation of Federal agencies. Specifically, we are asking each government agency to join in the printing requisition and purchase copies of the Handbook, as was done previously. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jr. • The honoratic Paul A. Volcker PP.{two https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis jr the past, copies distributed through your agency can include both attribution to your agency on the cover and a rersonal message from you on the inside. Eased on previous experience, the size of your agency, the degree of consur.er interest in your activities, and total printing costs, we recommend procureent by your agency in the amount of J:10,000 to purchase sufficient copies to meet anticipated public demand for the Pandbook over the next 18 months. This publication will be ready in draft for agency staff review within a few weeks, with printing set for September. For your convenience, we will make arrangements with the Governrent Frinting Office enabling you to obligate funds either fror, your FY 19E1 or FY 1982 budget, whichever is preferable. To meet our publication schedule, and take advantage of the cost savings that can be realized by the economy of a multi-auency printing arrangement, we request your response to this prorosal by August 17. Should your staff require any additional information, they should contact Dan humelt of my staff at 755-b810. ;incerely, Special As nia H. Knauer tant to the President Enclosure J.; https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis gee • 0 • Z 4.1 A ••• , EXECUTIVE OFFICE. OF FHE PRESIDENT OFFICE OF MANA 80APP. 1ENT AND BUDGET WASHINGTON, D.C. 20503 1981 AUG -7 11: IS JUL 3 1 1981 orrIrF. , M -8I-12 • \ MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENC IES SUBJECT: Implementing Presidential Travel Management Improvement Directives In his memorandum on strengthening Federal travel management (copy attached), the President directed several changes to Feder al travel policies and practices. He also directed the Secretar ies of State and Defense, the Director of the Office of Personne l Management and the Administrator of General Services to impl ement the directed changes through the regulations they promulgate . He also asked that I coordinate the implementation activities. Accordingly, I am establishing a Travel Management Improvement Group, chaired by Harold I. Steinberg, Associate Director for Management, Office of Management and Budget and consisting of representatives of the four departments and agencies with major travel policy authorities. The Group will be responsible for coordinating the policy initiatives and other actions required to implement the President's directives. Because of the significan t role of the General Accounting Office in interpreting and auditing travel policies, I have asked the Acting Comptroller General to designate a representative to serve as a point of coordina tion with the Group. Please designate an individual in your organization who can fully represent you in dealing with the Travel Management Improvement Group. Mr. Steinberg should receive your designation within a week of your receipt of this memorandum. The documentation and rationale that we will be using in implementing the President's directives are found in the attached copy of the report of the interagency study group that revie wed the travel area. Establishing efficient travel manageme nt is an important part of this Administration's efforts to reduc e wasteful Federal spending. The President and I expect real savi ngs and other tangible benefits from the implementation of his travel management improvement directives. avid A. Stockman Director Attachment https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • 2 • Administrator of General Services to implement thL nf!ccssary changes to. the regulations they promulgate. I have aski!d the Director of the Office of Management and Budget to coordinate the implementation activities. These improvements are an important part of this Administration's economic reform program and its efforts to reduce wasteful federal spending. I expect the results of the improvement to include: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - annual cost savings of over $200 million, consisting of $116 million in direct travel expenditures and $85 million in travel-related administrative costs; - improved control and manatgemont of agency travel expenditures; and - accelerated reimbursements to travelers and to carriers. 0, nts • THE 'NHITE HOUSE• W/\ SHINGTON July 30, 1981 MEOR;\NDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES SUBJECT: • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Strengthening Federal Travel Management The Federal Government will spend almost $4 billion in fiscal year 1981 on travel. Although most of this travel is required to carry out agency programs, instances of mismanagement and wasteful spending have continued to surface over the years. To improve the management of federal travel, I am directing that the following changes be made to travel policies and practices and would urge that the lead agencies work with the rest of the Executive Branch as they implement these recommendations: Separate travel regulations for civilian employees, foreign service, and uniformed services will be simplified, standardized, and updated to assure consistent treatment of all federal travelers. - Travel authorization policies will be tightened, including a reduction in the use of general travel authorizations. - Travel services for agency employees will be improved at headquarters and principal field locations, including greater use of commercial ticketing and travel services and available discounts. Greater efforts will be made in cooperation with the travel industry to expand the availability and use of transportation, lodging, and other travel-related discounts for federal travelers. •polices will be Travel reimbursement streamlined to include adoption of locality-based flat per diem rates for subsistence costs, improved controls over travel advances, aIind simplified voucher processing. Effective implementation of these improvements will require a coordinated effort by those agencies with travel policy and oversight responsibilities. Accordingly, I am directing the Secretary of State, the Secretary of Defense, the Director of the Office of Personnel Management, and the • • -r •... THE WHITE HOUSE • • . t 1581 riuG August 5, 1981 •- ...- 1.-, • • n% 'r.L • 2C r, MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES SUBJECT: Aiding Federal Employees in Reemployment Reducing and streamlining the Federal bureaucracy is central to the economic recovery of America. This means that some Federal employees are facing the prospect of losing their jobs. I am determined to minimize as much as possible the adverse impact of these reductions on the individuals involved. To do this, each department and agency reducing its employment level must be aggressive in its attempts to find employment for individuals who are facing the loss of their jobs. It is vital that full consideration be given these employees for positions in the Federal Government. Every department and agency has an obligation to support the interagency placement efforts being coordinated by the Office of Personnel Management. OPM has now expanded opportunities for Federal workers in reduction-in-force situations in both the public and private sector job markets. What is needed now is willingness and determination by you and your management teams to make the best use of these mechanisms and assist in their success. I have asked OPM Director, Donald J. Devine, to keep track of our progress in this area. He will be in touch with you in the near future. Assisting Federal employees who are facing the loss of their jobs is a government-wide imperative. For the sake of those personally affected -- and for the economy -- we must strive to retain the skills of our many talented civil servants in the Nation's work force while reducing the size of Government and redirecting its purposes and direction. https://fraser.stlouisfed.org L._ Federal Reserve Bank of St. Louis ] https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • •r •L:r" 1,1. 4 THE WH I FE HOUSE wiisHINGToN July 13, 1981 /SRI nuG _6 , 0,1 to: 23 en717 : =As.:::DUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES— ,,, SUBJECT: Budget Review Procedures Historically the budget process has been an annual cycle with the Executive Branch proposing early in the year and the Congress disposing during the rest of the year. More recently the budget process has changed. It is now a complex year-round process which involves virtually continuous adjustment. For example, right now we have pending a second round of tion Bill rescissions and deferrals for FY 81 and a Reconc We have simultaneously begun the Spring Review which for FY 82. leads to our budget marks for FY 83. The Mid-session report on the •budget just released shows that •not significantly changed. However, •has our overall position this small overall net change obscures the many program level budget threats which have developed and the increased strain they place on our abilities to make our overall budgetary We cannot make any decisions -- foreign, domestic objectives. or defense -- unless their budgetary impact is fully considered. Because of the need to evaluate the budget continuously, I have established a Budget Review Board composed of Ed Meese, Jim Baker and Dave Stockman. Any situation, decision or impending emergency, which you feel could lead to unbudgeted expenditures or to an increase in budgeted allocations must be reported promptly to the Budget Review Board. Authorization from the Budget Review Board must be obtained p,rior to incurring or obligating any such expenditure or increase. Once I have set a budget projection, each of you must extend every effort to make sure we achieve that projection. It should be clear that achieving our budget objectives is something that must be a personal priority of each of us. Bringing federal spending under control and keeping it there is our most urgent priority. This is the only way we will be able to achieve our objective of giving the American people the strong, healthy economy which they demanded in last fall's election, and it is the fundamental precondition for achieving many of the other important objectives that we have established to restore our Nation at home and abroad. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44, THE WHITE HOUSE WASH I NG TON 1(.21JiL 3 rr II: 46 July 30, 1981 OFFICE- cr 1. t MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES SUBJECT: Strengthening Federal Travel Management The Federal Government will spend almost $4 billion in fiscal year 1981 on travel. Although most of this travel is required to carry out agency programs, instances of mismanagement and wasteful spending have continued to surface over the years. To improve the management of federal travel, I am directing that the following changes be made to travel policies and practices and would urge that the lead agencies work with the rest of the Executive Branch as they implement these recommendations: Separate travel regulations for civilian employees, foreign service, and uniformed services will be simplified, standardized, and updated to assure consistent treatment of all federal travelers. Travel authorization policies will be tightened, including a reduction in the use of general travel authorizations. Travel services for agency employees will be improved at headquarters and principal field locations, including greater use of commercial ticketing and travel services and available discounts. Greater efforts will be made in cooperation with the travel industry to expand the availability and use of transportation, lodging, and other travel-related discounts for federal travelers. Travel reimbursement policies will be streamlined to include adoption of locality-based flat per diem rates for subsistence costs, improved controls over travel advances, and simplified voucher processing. Effective implementation of these improvements will require a coordinated effort by those agencies with travel policy and oversight responsibilities. Accordingly, I am directing the Secretary of State, the Secretary of Defense, the Director of the Office of Personnel Management, and the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - Ik 2 Administrator of General Services to implement the necessary changes to the regulations they promulgate. I have asked the Director of the Office of Management and Budget to coordinate the implementation activities. These improvements are an important part of this Administration's economic reform program and its efforts to reduce wasteful federal spending. I expect the results of the improvement to include: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - annual cost savings of over $200 million, consisting of $116 million in direct travel expenditures and $85 million in travel-related administrative costs; - improved control and management of agency travel expenditures; and - accelerated reimbursements to travelers and payments to carriers. cr\,•-•zr https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19, 1981 Dear Ms. Knauer: I an writing in response to your letter inviting the Federal Reserve Board to participate in the second Constituent Resource Exposition on September 14. The Board will be pleased to again take part in this event. The Board found the first Expo to be a useful forum for the exchange of information which allows Federal agencies and congressional staffers to handle constituent concerns more effectively, and we look forward to working with your staff to make this event a success. Susan Potkai of the Division of Consumer and Community Affairs has been designated as the agency contact for the Expo. She may be reached at 452-3693. Sincerely, Richard F. Syron Special Assistant to the Chairman Ms. Virginia H. Knauer Special Assistant to the President Director U.S. Office of Consumer Affairs Washington, D. C. 20201 cc with incoming: Joe Coyne, Don Winn, Naomi Salus, Carol O'Brien, Robin Fenner, Susan Potkai, Sandy Wolfe SJP:slw WH-26 BOARD CT THE WHITE HOUSE rt. 7,7,t 4.1 1981 JUL 29 nti 8: 30 WASH I NGTON . RENIVF.Ti July 2 4 , 1981OFFICE Of' I 1.: The Honorable Paul A. Volcker Chairman Federal Reserve Board Washington, D.C. 20551 Dear Mr. Volcker: The U.S. Office of Consumer Affairs is sponsoring the second Constituent Resource Exposition in the Cannon House Office Building Caucus Room, on September 14, 1981, from 10:00 a.m. to 3:00 p.m. The purpose of the Expo is to have representatives of federal agencies meet with Congressional staffers to acquaint them with information available to resolve constituents' problems. Our objective is to improve communication and understanding between federal officials and Congressional staffers in handling constituent concerns involving matters that fall within the jurisdiction of the Federal government. Our Constituent Resource Exposition last year was extremely well attended. and proved to be greatly beneficial to both agency personnel and Congressional staffers. We ask that each agency participating set up an exhibit booth and have material and information available for distribution. It should be staffed with agency personnel that can discuss these programs and are very familiar with the ways- in which the agency handles Congressional complaint letters and requests for information. We feel that once again your agency will make a major contribution to the Expo and we would very much like your participation. I look forward to receiving your early response to our request that your agency will take part in the Constituent Resource Exposition. If you have any questions regarding the Expo, please telephone Roger Goldblatt of my staff at 755-8820. Sincerely, Vik'nia H. Knauer Special Ass stant to the President Director U.S. Office of Consumer Affairs cc: Ann Marie Bray https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EI.410JTIVE OFFICE 01 THE PRESIIIT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON. D.C. 20503 1931 JUL 23 Pr 12: 28 REcrr,'!": M-81-11 eFFM,Juil yti'7 21: . 111 9 P fA 3; MEMORANDUM TO HEADS OF DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Grant Cash Management We recently asked the General Accounting Office to reconsider an interpretation of the Intergovernmental Cooperation Act of 1968 that is having an adverse impact on cash management of Federal aid programs. The interpretation held that States, and subgrantees receiving Federal aid through the States, could not be held accountable for interest earned on cash drawn prematurely from the Federal Treasury. In the attached decision the GAO reaffirms its original ruling but points out that it has audit work underway that may The GAO result in recommendations for legislative change. also points out that its decision does not preclude agencies from complying with OMB and Treasury cash management directives, or from carrying out the three steps called for last year by the Senate Committee on Appropriations, i.e.: 1. Reviewing periodic reports filed by grant recipients to ascertain whether they are drawing and holding cash in excess of their current needs; 2. Auditing a sufficient number of recipient accounts to determine whether they are filing accurate reports of cash on hand; and 3. Initiating immediate recovery action whenever recipients are found to have drawn excess cash, in violation of Treasury Circular 1075. We urge you to instruct your staff to do all that they can to carry out the recommendations of the Senate Appropriations For example, in cases where individual grantees Committee. persist in drawing excess cash or refuse to cooperate in efforts to control drawdowns, consideration should be given to rescinding letter-of-credit arrangements with them, or In placing monthly restrictions on their letters-of-credit. addition, agencies should review their systems for monitoring cash balances to assure that they are adequate to prevent excess drawdowns from going undetected. 4. N......, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I O We, like GAO, are considering recommending changes to the Intergovernmental Cooperation Act to minimize the possibility that cash will be drawn prematurely from the Treasury. The major grant-making agencies will be consulted during the course of our review. avid A. Stockman Director • 'So https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • DECISION THE COMPTROLLER °ENTERAL 41. 6 . OF THE UNITED STATES WASHINGTON, FILE: B-196794 DATE: O. C. 20548 Febraar2.- 21;, 1981 MATTER OF: Interest earned by State Subgrantees DIGEST: Interpretation of § 203 Intergovernmental Cooperation Act of 1968, 42 U.S.C. § 4213 (1976) that subgrantees of grants to States need not account for interest earned on subgrant advance reconsidered at request of Director of OMB. Interpretation contained in 59 Comp. Gen. 218 (1980) and 13-171019, October 16, 1973, reaffirmed. Ruling the other way would require the States to account for the interest earned by its grantees, a result which appears to be contrary to this provision. This is in response to the request of the Director of the Office of Management and Budget (OMB) that we reconsider our interpretation of the Intergovernmental Cooperation Act of 1968 contained in our decisions, 59 Camp. Gen. 218 (1980) and B-171019, October 16, 1973. In these cases we interpreted § 203 of the Intergovernmental Cooperation Act of 1968, 42 U.S.C. § 4213 (1976) (S 203) as permitting subgrantees of Federal grants to States to keep interest earned on State advances to the subgrantee. We have reviewed both of these decisions and, as explained below, we find no basis for revising our interpretation of § 203. Given the language of S 203 which says that States will not be held "accountable" for interest earned on advances of grant-in-aid funds, it is difficult to see how this Office could rule other than we have in the two questioned decisions. As more fully explained in these decisions, in order to obtain the interest earned by subgrantees it would be necessary to require the State, rather than the secondary recipients of the grant funds, to account for the interest. This would be contrary to the statute, since in such grants it is the States with which the Government has a relationship and to which it must look for relief. Accordingly, despite the fact that § 203 and its legislative history do not address the question of interest as it pertains to sub3rantees, the conclusion that interest earned by subgrantees of States need https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B-196794 not be In the how we S 203, returned to the Federal Government is clear in our view. absence of any explanation in the OMB Director's letter of might reach another conclusion based on an interpretation of we feel compelled to reaffirm our decisions. We are, however, sympathetic with OMB's concerns. We are currently reviewing a number of areas in which we have identified problems with grantee and subgrantee retention of interest. Also, as noted by OMB, administrative changes that have taken place since passage of § 203 provide a basis for reassessing the policies that § 203 embodies. Section 203, which exempts States *from the general rule that requires the return of interest earned by grantees on grant funds, is largely based on the assumption that the Government can effectively control the release of grant funds so that States will not be in a position to earn excessive interest on any advances they might receive. Implicit in the § 203 approach is the view that where States do earn interest, such amounts are too small for the Government to concern itself with. However, there is some evidence that the amounts now being earned on advances to the States are substantial. We have not yet recomuended a change to § 203. Whether we will recommend a legislative change will depend upon the outcome of audit work now in progress. We_recognize that the Senate Report on .H.R. 7542, the Supplemental Appropriations and Rescission Bill, 1980, directs agencies to improve their cash management and particularly to comply with Treasury Circular 1075. As long as section 203 remains in effect, thereby giving an incentive to states and their subgrantees to draw on the funds before they are needed, we see no basis for changing our ruling even if this is an obstacle to better cash managment. However, we should point out that our decision does not preclude agencies.from complying with the three steps mentioned by the Senate Comittee on Appropriations, including "Eilnitiating immediate recovery action whenever recipients are found to have drawn excess cash, in violation of Treasury Circular 1075." S. Rep. No. 96-829, 96th Cong., 2d Sess. 14 (1980). Thus, the agencies should monitor their grantees draw of cash and recover any excess. For the 2 Comptroller enera1 of the United States INN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 270 1981 The Nomorable Virginia 0. Knauer Speeial Assistant to the President and Director, U.S. Office of Consoler Affairs 621 Reporters Building S.W. Washington, D.C. 20201 Dear Ms. Mumma Thank you for your letter inviting us to participate in the activities of the Consumer Affairs Council. Ann Marie Bray of our Division of Comemmer and Community Affairs will continue to attend meetings of the Council as an observer. I understand that she has already been in touch with your office concerning the upcoming meeting. Sincerely. AMB/tn wH-24 M-1305 THE WHITE HOUSE WASHINGTON July 8, 1981 !• .1 ... r•F *C.OVERPItR( ..F jbt ' 1981 JUL 114 n14, 11: 50 RF_CEIVE3 ThE OF trFICE .11 MEMORAIMU"1 TO HEADS OF INDEPENDENT . AGENCIES . )/ . ( (. FROM: Virginia H. Knauer 1..?tz7,,ic..6 . --,' Special Assistant to the President and Director, U.S. Office/of Consumer Affairs SUBJECT: Federal Consumer Programs We request your assistance in assessing Federal consumer affairs programs and in activating the Consumer Affairs Council. The Consumer Affairs Council was established Executive Order 12160 to provide leadership and coordination for Federal consumer programs and to assure effective communication on consumer issues, efforts, and programs. The President has emphasized his concern for consumer interests by appointing me a Special l\ssistant to him and Director, U.S. Office of Consumer Affairs, as well as Chairperson of the Council. As Chairperson I am responsible for monitoring the implementation of consumer programs throughout the Federal government and reporting periodically to the President on their progress. While Executive departments and agencies are automatically Council members, independent agencies are also invited to join. Alternatively, agencies may designate an observer to attend meetings of the Council. Please let Mrs. Gerstner at 456-7483 know by July 22 who your representative to the Council meeting will be. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • J,Ily 11, 1981 The Honorable Malcolm baldrige Secretary of ConTerce Wefthiniton. D. C. 20230 Dear r.alcolr: The Federal Reserve Board is pleased to participate in the 1982 ComAned Fe8era1 Campaign and I will be happy to servo as Chairman for tIle Board's program. Mr. Edward T. Mulrenin, Assistant Staff Director for Management, will serve as Vice Chairman for our program. Mr. Mulrenin is Located in Room 3-2047 and his telephone nue>er is 452-37. . Siacercly, WIT-22 cc: Cntherine Mallardi (2) Edward T. Muirenin DEU:dtm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE WHITE HOUSE WASH NGTON July 2, 1981 20 19E11 Jt11_ -7 PI II: CH:::::,11.‘s: OFFICE OF THE MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES The Honorable Malcolm Baldrige, Secretary of Commerce, has agreed to serve this year as Chairman of the Combined Federal Campaign for the National Capital Area. • Combined in this campaign are the annual fundraising efforts of the United Way, the National Health Agencies, local non-federated voluntary agencies and the American Red Cross. Through the CFC, Federal Employees have the opportunity to help our neighbors and fellow citizens without going through government channels. We have the chance to prove what people can do on their own. In America, we have traditionally accepted the responsibility of individual giving for good causes. The values that cause us to care for our neighbors, our countrymen and people in faraway lands are the values that make us greIi at. I request that you serve personally as Chairman of the Combined Campaign in your organization and appoint a top assistant as your Vice Chairman. Please advise Secretary Baldrige of the person you designate as your Vice Chairman. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis y-i/a)2eet. BOARD OF GOVERNORS ........ • OD Gv4 ,. • •0 • .• ,i•• t ,,Lt • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to4dai OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 OFFICE OF STAFF DIRECTOR FOR MANAGEMENT July 20, 1981 Ms. Virginia H. Knauer Special Assistant to the President The White House 1600 Pennsylvania Avenue, N.W. Washington, D.C. 20500 Dear Ms. Knauer: I am responding to your July 7, 1981 invitation to Chairman Volcker to appoint a permanent representative to the Federal Interagency Committee for the International Year of Disabled Persons (IYDP). I am designating Ms. Susan Fansler, the Handicapped Program Coordinator, as the representative from the Board of Governors of the Federal Reserve System. Please notify her of your meetings by telephone at 452-2232 or through our Equal Employment Opportunity Office. Sincerely yours, Director q seph W. Daniels al Employment Opportunity 111 11117 ii THE WHITE HOUSE WASHINGTON 11 ,1. 4_ I • 1981 JUL -9 r• July 7, 1981 r7VERUCRS " . t., :". OFFirr -• •! r; Pr• _ 1 • j. Dcar Chairman Volcker: The President and•I would like to thank you for your recently submitted plan for the International Year of Disabled Persons (IYDP). It is a pleasure to hear about the exciting activities now being undertaken in commemoration of this important Year. The Federal Interagency Committee for IYDP, formed by the White House, coordinates and develops national participation in the International Year. I would like to invite you to appoint a permanent representative to the committee. Our next meeting will be held at the Department of Labor, 200 Constitution Avenue, N.W., Room S 4215 A-C, from 9:30 a.m. - 12:00 noon on July 17th. The Executive Director, Federal Secretariat, Mr. Harold O'Flaherty, would be pleased to meet with you prior to the meeting, to answer questions or discuss any concerns you might have. He can be reached at 245-0170. Again, I would like to thank you for your commitment which will undoubtedly enhance the capabilities of all disabled persons and make this International Year a true success. I look forward to your continued participation. Sincerely, t- 7 Virgi la H. Knauer Special AssiStant to the President Honorable Paul A. Volcker Chairman Federal Reserve System 20th Fl Constitution Avenue, N.W. Washington, D.C. 20551 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 31, 1981 Mr. Jim ExecutiO6ktor for Presidential Task Force on Regulatory Relief Old Executive Office Building Room 246 Washington, D.C. 20503 Dear Mr. Miller: Your June 24, 1981, memorandum to Chairman Volcker requested our cooperation in providing certain information to you in regard to the President's regulatory relief program. The Federal Reserve is happy to provide that information and to participate generally in the regulatory reform effort initiated by the Administration. The Federal Reserve believes this regulatory reform effort is highly important to improving our nation's economic performance. We have reviewed the public responses to the Vice President's request for specific suggestions on changing regulatory programs and are glad to report that the Board's Regulatory Improvement Project, established in 1973, has reviewed or has on its agenda for review every Federal Reserve regulation that the public identified. The following summarizes the status of these regulations. Regulation B - Equal Credit Opportunity (12 CFR 202) The comments urged a number of changes in this regulation, most of which would require enacting legislation. Regulation B is currently the subject of a survey by the Board's Regulatory Improvement Project to determine compliance costs to institutions and benefits to consumers. This survey is expected to provide pertinent data for the currently scheduled review and analysis of this complex regulation by the Project. Regulation C - Home Mortgage Disclosure (12 CFR 203) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This regulation is now being revised to implement 1980 amendments to the Home Mortgage Disclosure Act. Both the language and substance of the regulation are simplified in a number of ways, including modification of the model disclosure form and certain disclosure requirements. Some members of the public have urged that the law's total-asset test that triggers the reporting requirements should be changed to a mortgageportfolio test to reflect a depository institution's 'norne mortgage lending. The Board itself requested such a change last year, but Congress rejected the proposal. Other suggested ameliorative changes would also require legislative action, as would outright repeal of the Act, which a number of the public has urged, citing insufficient public interest in the information disclosed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Regulation D - Reserve Requirements of Depository Institutions (12 CFR 204) This regulation was revised in August 1980 to reflect the amendments of the Monetary Control Act of 1930. The Board approved a temporary exemption for institutions with less than $2 million in deposits and instituted a quarterly reporting requirement (instead of a weekly one) for institutions with $2 to $15 million in deposits. Raising and making permanent the current exemption level, as suggested in the comments, would require legislation. Regulation E - Electronic Funds Transfer (12 CFR 205) Regulation E became effective in May, 1980. Public comments suggested, among other things, greater compatibility with Regulation Z — once sufficient experience has been gained under the present regulation and EFT services are no longer in their infancy — and a clearer definition of the scope of Regulation E's coverage, particularly the services and activities covered by the law. Providing greater compatibility with Regulation 2 would, of course, require legislative action for the most part. The final commentary on Regulation E, which will be available by this fall, will address and attempt to clarify a number of problematic areas. In addition, the survey of the costs and benefits of certain consumer regulations, including Regulation E, should provide data on any unnecessary burdens and on changes that should be recommended for legislative consideration. Regulations G, U, T, X - Margin Credit Regulations (12 CFR. 207, 220, 221, 224) A major, comprehensive review and analysis of these margin credit regulations has been underway since last year. The first group of proposed amendments was published for comment in the Federal Register In June of this year, and a second set of proposals to simplify and reduce the regulatory burden was approved by the Board in July of this year for publication in the Federal Register. In addition to substantive changes for simplification, all four regulations are presently being completely redrafted and reorganized to clarify their language. Relation U - Membership in Federal Reserve System (12 CFR 208) Suggested changes to eliminate certain requirements regarding securities transactions will be taken into consideration when this regulation is reviewed in 1932. Regulation Q - Interest on Deposits (12 CFR 217) Public comments urged, among other things, simplification of the complex provisions regarding rates paid and early withdrawal penalties, as well as elimination of the ceiling on maximum interest rates that may be paid. Pursuant to the Monetary Control Act of 1980, the Depository Institution Deregulation Committee now has jurisdication and responsibility for Regulation Q. -3Regulation Y - Bank Holding Companies(12 CFR 225) The review of this major regulation under the Regulatory Improvement Project is nearing completion; and the regulation Is presently being completely redrafted to simplify its language and to reflect a number of proposed substantive changes that will reduce the regulatory burden, particularly in procedural requirements. Replation Z - Truth-in-Lending (12 CFR 226) This consumer regulation was substantially simplified as a result of the Truth-in-Lending Simplification and Reform Act of 1980. The public comments suggested additional simplification, which the Board is taking into consideration. We are now collecting data on the costs and benefits to banks and consumers of compliance with Regulation Z. Once the responses to the survey have been collected and analyzed, the data should be helpful In determining if further simplification is warranted and if ameliorative changes should be recommended for legislative action. Re_gulation BB - Community Reinvestment (12 CFR 228) The comments indicated lack of interest by the public in the information required to be disclosed by the Act and regulation. Moreover, these requirements are generally viewed as tantamount to credit allocation. Suggested changes, such as exemptions for small institutions, will be considered when this regulation is reviewed by the Regulatory Improvement Project; and any required legislative action will then be proposed. I hope this letter is helpful to you. Our Regulatory Improvement Project Group would be happy to keep the Task Force on Regulatory Relief generally informed concerning further decisions reached by the Board of Governors in this important area. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sincerely. (signed) William W. Wiles William W. Wiles Secretary of the Board "04 ("61, "so <-4), cfs Ar4,„v,c '7.1t OFFICE OF THE VICE PRESIDENT e eso WAS JUN 24 1981 MEMORANDUM FOR PAUL VOLKER (i) ER FROM: mum 414 SUBJECT: 4 ew of Public Responses to Vice esident's Request for Input As you know, on March 25 the Vice President sent letters to more than 100 industry, environmental, consumer and other interested groups asking for specific suggestions for how regulations could be changd in order to generate greater net benefits. The response to the Vice President's request has been overwhelming, demonstrating the public's interest in the President's regulatory relief program. It is essential that we respond to these submissions promptly and thoroughly. .4 The Vice President's letter asked members of the public to submit their suggestions in the first instance to the agency enforcing the regulation, with copies of a one-page summary to be sent to the Task Force on Regulatory Relief. Thus, you should have received submissions that pertain to your agency's regulations. Pursuant to the Vice President's March 25 letter to you asking that you cooperate voluntarily with our efforts to provide regulatory relief, I would appreciate your cooperation by providing us with responses to the following questions: 1. Of the regulatory programs identified by the public, which ones are you already reviewing? 2. Of the regulatory programs identified by the public that are not currently under review, which ones do you believe ought to be designated for review? Also, it would be helpful if you could perform a simple inventory of the responses you have received; we have already inventoried the one-page summaries received by my office, and my staff would be glad to share this information with your staff. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 'kt 4 2 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis It is our intention to complete an initial assessment of the materials received by mid-July, at which time the Vice President may well announce a group of regulations designated for review in addition to the 27 he announced on March 25. You may wish to have one or more of your agency's regulatory programs included in this announcement as a symbol of your agency's commitment to reducing unnecessary regulatory burdens. • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • BOOB C,F. rInt'F.RNORS :F ELIRAL R:ESEiNE. F.Y`S.TEr. THE WHITE HOUSF981 jum 15 nm 10: 05 WASHINGTON June 12, 1981 RECEIVED OFFICE OF 1HE CH411,1401 TO: Assistant Secretaries for Legislative Affairs From: Max Friedersdorf LPIA. Assistant to the President Subject: Gramm/Latta II Enclo-,ed is a "working draft" of the bi-partisan (Gramm/Latta II) substitute for Reconciliation. I wish to emphasize that this is a draft and subject to revision. June 11, 1981 HOUSE COMMITTEE: Agriculture .g Policy Change Program Direct Spending Programs . Storage Facility Loans Farmers Home Administration - Rural Development and Ag. Credit Insurance Funds Adopt Senate Agriculture Committee provision which equals the Reconciliation Instruction and Administration proposal. The purpose is to eliminate the mandate for this program so that it could be phased out over five years. Most areas in the U.S. have excess grain storage capacity. The five-year phase-out will provide assistance to those few areas without sufficient grain storage capacity. Adopt the Reconciliation Instruction. The main purpose is to reduce Federal credit activity and decrease outlays by reducing interest subsidies. The major features are: 11=1. reduce loan levels in the major RDIF and ACIF programs; terminate the Business & Industry loan program in the RDIF; establish interest rates based on Treasury borrowing costs (S. 945/H.R. 3391) or municipal borrowing rates (S. 944/ H.R. 3388). . Commodity Inspection User Fees Adopt Reconciliation Instruction and Administration proposals to recover the Federal cost of supervising grain grading and weighing operations, providing cotton classing, tobacco and naval stores grading, and warehouse examination and inspections. (S. 949 and S. 948). . Grain Reserve Interest Waiver Adopt Reconciliation Instruction and Administration proposal to eliminate the mandate to waive all interest on 1981 crop grain reserve loans. . USDA Conservation Cost Sharing Adopt Reconciliation assumption which reduces three cost-sharing programs to the following amounts: (S in M) $150 Agricultural Conservation Program Water Bank Program 0 Forestry Incentives Program 10 . Rural Water and Waste Grants Adopt the Senate proposal, to reduce S118M, same as the Reconciliation Instruction and the Administration proposal. House Committee proposed a $20M reduction. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -Line 11, • HOUSE COMMITTEE: AGRICULTURE • Program Policy Change Authorize Programs ° Food Stamp Program https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Adopt food stamp amendments as passed by Senate on June 10. Major changes include revised eligibility limits (gross income limit of 130of poverty line except for elderly disabled recipients) and revised procedures for calculating benefits (pro-rate benefits in 1st month). A series of minor changes are also included. Jane 11, 19 HOUSE COMMITTEE: Agriculture Program: Authorize Programs: Policy Change . Amend the Agricultural Trade Development and Assistance Act of 1954 (PL 480) to set caps on the program at the levels proposed by the House Committee -- $1,305 million in 1982, $1,355 million in 1983, and $1,427 million in 1984. This would represent a savings of $132 million from the CB0 baseline of $1,437 million in 1982. It would leave the Title I program $142 million, or 16 percent, above the Reagan 1982 budget request. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P.L. 480 Food Aid https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 11, 1981 COMMITTEE: Armed Services Progra7 Policy Change Authorize Programs _Sales of Excess'Materials from the National Defense Stockpile Accelerate the sale of excess materials, primarily silver and other commodities. These commodities have been declared excess for national defense purposes. June. 11, 19 • • HOUSE COMMITTEE: Armed Services Program • Policy Change Direct Spending Programs . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Retired Pay Adopt House Committee action which changes cost of living adjustment to one Per year for retired military personnel instead of two per year under current law. P.L. 96-342 approved this change to be effective when similar legislation was approved for Federal civilian employees. Savings: (in millions) BA 394 1984 1983 1982 0 BA 0 BA 0 394 327 327 285 285 • HOUSE COMMITTEE: Program Tune 11, 1981 Banking, Finance, and Urban Affairs Policy Change • Direct Spending Programs FmHA Rural Housing Insurance Fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Adopt the Reconciliation Instruction which is consistent with the Administration's original proposal. Both the House and the Senate have adopted the Reconciliation Instruction. The purpose is to reduce Federal involvement in the credit market and to restrain outlays be decreasing interest subsidies. The main features are: -- lower loan levels -- increase interest rates to the cost of Treasury borrowing on loans to moderate income families (S. 1197/H.R. 3390) S HOUSE COMMITTEE: Program • June 11, 19 Banking, Finance and Urban Affairs Policy Change Authorize Programs • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis National Consumer Cooperative Bank Adopt Senate-passed D'Amato substitute (section 317 of S. 1197) that would: (1) retain the structure of the bank; (2) prohibit it from borrowing or committing to make new loans; (3) require it to service its debt and return payments of principal and interest net of operating costs to the Treasury. Budget savings in the Senate substitute would be close to those contained in the Administration's original proposal (S. 935) to end the Bank, but would fall short by $4M in BA and Outlays in 1982, S3M in 1983 and $3M in 1984. • June 11, 1981 HOUSE OaNITTEE: Banking •• Proaram . Policy Change Authorized Programs O Community Development Block Grants (CG) and Urban Development Action Grants (UDAG) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Adopt the Adninistration's initial proposal contained in Title I of S. 1022 and H.R. 3261 and as fully explained on page 182 of the Additional Details on Budget Savings. The Administration's proposal would: 0 begin a State economic development block grant for rural areas and small communities at about $1,082 million in 1982 and up to $1,232 million in 1983; These funds would be earmarked for use only in non-entitlement areas—that is, funds could not be used for metropolitan cities or urban counties. O not impose any special requirements on States administering this economic development block grant ployram; O authorize a 70/30 split between entitlement and nonentitlement areas; O fold the UDA0 program into the CDBG program as part of an expanded Section 107; O expand eligible activities to include economic development in conjunction with private, for-profit entities; O reduce application requirements; O reduce the activities of the Secretary's Discretionary Fund; O revise and better target UDAG assistance; and O fund this combined program at a total funding level of S4,166 million for both 1982 and 1983, leaving open 1983 UDAG funding pending the results of a current study. • • June 11, 1981 o Rehabilitation Loan Fund Adopt the Administr:=ition's initial proposal contained in Title I of S. 1022 and H.R. 3261 in order to deauthorize the Rehabi - itation Loan Fund. (Far additional details, see page 194 of the Additional Details on Budg-et Savings). o Planning Assistance Adopt the Administration's initial proposal contained in Title I of S. 1022 and H.R. 3261 in order to deauthorize the Planning Assistance program. (For additional I- tails, see page 190 of the Addonal Details on Budget Savings). o Neighborhood Self-Help Development Program Adopt the AdministrE Lon's initial proposal contained in Title I of S. 1022 and H.R. 3261 in order to deauthorize the Neighborhood Self-Help Development Program. additiS nal details, see page 189 of the Adonal Details on Budget Savings). o D3E's Low-Income Weatherization Adopt the Administration's initial proposal contained in Title I of S. 1022 and H.R. 3261 in order to deauthorize ME's Low-Incame Weatherization program. (Far additional details, see page 114 of the Additional Details on Budget Savings). • These four programs duplicate the present CDBG program and their activities can be undertaken by CDBG recipients, at their discretion, under the current CDBG law. These changes are justified for the following reasons, all of which were promised by President Reagan to the American people: I-- The consolidation of categorical grant programs into block grants, to include a new State economic development block grant program for rural areas and small cammunities. 2 - The return of decon-making and implementation powers ta local and State governments. 3 - The lessening of Federal intervention in local and State community and economic :2velopment. 4 - A reduction in Federal staffing and administrative expenses. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • HOUSE COHMITrEE: Procram June 11, 1981 Banking Policy Chance • Authorized Programs ° Subsidized Housing -- program level Adopt budget resolution working assumption level of 162,500 units at a 45/55 new-versus-existing mix (Administration's initial program reduced by 13,500 units). This restrains the rate of growth of HUD subsidized housing obligations and can be found as Sections 201(a) and (b) of H.R. 3261, but will require that the dollar authorization be reduced. -- Public Housing Modernization Adopt Administration's proposed levels of $1.5 billion in BA in 1932, and S1.2 billion in 1983 and 1934 as found in Section 201(c) of H.R. 3261. (see page 206 of "Additional Details") -- Public Housing Operating Subsidies Adopt Administration proposal to fund 1982 program at $1,204.6 million as found in Section 201(d) of H.R. 3261. Although this is a restrained level, it still provides for 12.5 percent growth over current 1981 level. (see pages 192-193 of "Additional Details") -- Tenant Rent . Contribution Adopt Administration proposal for increase from 25 to 30 percent of cash income as found in Section 202 of H.R. 3261. This step is needed to improve equity in the distribution of subsidized housing resources, as well as to reduce Federal outlays. (see pages 201-202 of "Additional Details") Troubled Projects and Rent Supplements Adopt Sections 203 and 204 of H.R. 3261. Section 203 provides funding authorization of $50 million for 82 for the Troubled Projects program. Section 204 allows HUD to implement the Administration strategy to convert Rent Supplement units to Section 8. -- Section 202 Housing for the Elderly and Handicapped Increase outstanding Treasury borrowing authority as specified in Section 207 of H.R. 3261. -- Section 235 Homeownership Assistance Adopt Section 208 of H.R. 3261 which will clarify the provisions that enable HUD to recapture assistance payments for owners of Section 235 homes who default. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June S HOUSE COMMITTEE: Program Banking Policy Change Authorize Programs . Export-Import Bank: Direct loans https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Accept the working assumptions which set the limitation on direct loans contained in the Export-Import Bank Act of 1945, as amended, at $5,065 million in 1982. This is $1.1 billion above the House for 1982 and $665 million above the Reagan budget request. It would give the Bank greater scope in meeting predatory foreign official export credit competition. ii, 1L HOUSE COMMITTEE: Program , strict of Columbia Policy Change Authorize Program Loans to the District of Columbia https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Adopt Rep. McKinney's bill which the House District of Columbia Committee has reported to the Budget Committee. McKinney's bill closely tracks the Administration's proposed reform--to cap the District's capital borrowing from the Treasury. The McKinney bill would place a cap of $155 million per year on new budget authority ($145 M for outlays) for long-term, D.C. capital borrowing from the Treasury and to phaseout such borrowing by 1984. This change is justified because: --It is more costly for the District to borrow from the U.S. Treasury than if the City sold bonds to finance capital expenditures in the commercial bond market. --The District should not substantially increase its long-term capital borrowing at the same time it is trying to enter the bond market to finance its general fund accummulated deficit of $388 million. 411 June 11, 1981 Education and Labor Program • Policy Change • Direct Spending Programs Guaranteed Student Loans https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Generally accept the Coleman alternative for GSL (but not for SLMA), if it achieves working assumption reductions in 82-84. Provide significant access to loans for a typical family with an income of S25,000 or less. The Coleman proposal ould: change GSL to impose a 4% origination fee for all new loans which would be deducted from the loan and used to pay the special allowance, limit loan to remaining need as proposed by the Administration, and increase the rate charged on parent loans from 9% to 14%. • • June 11, 1981 HOUSE COMMITTEE: Program Education and Labor Policy Chanoe Direct Spending Prodrams o Summer Feeding o Special Milk o Child Nutrition (School Lunch) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Adopt Administration proposal to eliminate summer feeding program, which is consistent with Senate Agriculture Committee action. Adopt Administration proposal to limit special milk subsidies to schools without other Federal meal subsidies. Coincides with Senate Agriculture Committee action, House Committee action, and House Committee minority position. Adopt House Committee Goodling draft bill. Major changes include reduced subsides for higher income students, revised eligibility provisions, and permanent extension beyond FY 81 of reductions enacted in last year's Reconciliation Act. . June 11, 1981 . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOUSE COMMITTEE: Program Education and Labor Policy Change Direct Spending Programs Federal Employee's Compensation Program Administration proposal designed to assure that Federal workers disabled as a result of their employment are returned to work as soon as possible. In FY '82 savings are estimated at $76 mon. It does this by: -- making income replacement benefits 80% of prior spendable earnings; •••••••• providing a 7 day waiting period before claimants can receive compensation; -- replacing continuation of pay (C.O.P.) with agency authority to advance compensation and -- converting FECA recipients to civil service retirement rolls . after age 65. S . • June 11, 1931 HOUSE CC"!-IITTcr: Education and Labor Policy Change Prc7,ram Authorized Programs ° Impact Aid Accept the working assumption reduction level for the program but revise the Administration's proposal to expand coverage to districts whose enrollment of "A" children is at least 8%. Pell Grants Generally, accept the Coleman alternative for Pell Grants if it actually achieves working assumption reductions in 82-84. The Coleman alternative would: co limit costs of education as proposed by the Administration, allow the Secretary of Education to set the discretionary income assessment rate as generally proposed by the Administration, and increase personal, farm or business asset reserve. • National Endowment for the Arts and Humanities Accept the working assumption amounts which reduce the authorizations for both Endowments a total of -$165 million. The purpose of this action is to reduce Federal support for arts and cultural activities and to emphasize a greater role for private philanthropy and State and local support. Vocational Education Adopt the working assumption reduction which is $100 million higher in BA than the Administration's original FY 1982 proposal. Additional funds will be spread across all vocational education programs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 11, 1961 HOUSE COMMITTEE: Education & Labor Program Policy Change Autnorize Programs ° https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Elementary & Secondary Consolidation Streamline and consolidate elementary and secondary education programs per the Ashbrook bill, as modified. This bill eliminates extensive red tape in compensatory education programs and consolidates other ESEA and categorical programs. Handicapped, Bilingual, Adult, and Career Education are retained as categorical programs. Funding for cI mpensatory education and Handicapped I rograms is increased by $300 million over the reconciliation instruction. June 11, 1(_. HOUSE COMMITTEE: Program Education and Labor Policy Change Authorize Programs • CETA - Public Service Employment (PSE) Provide single appropriation language for CETA that would not provide authorization for titles II-D or VI (public service employment). Proposal would phase out all CETA-funded public service jobs by the end of FY 1981; there would be no PSE jobs in 1982. These programs have substituted federal resources for local funds and have failed to prepare participants for jobs in the private sector. (See CETA training below for reconciliation language.) • CETA - Training and Employment Programs Provide single appropriation authorization language for CETA that would not provide authorization for title VIII (Young Adult Conservation Corps). Consolidate title II-B,C (general training) and title IV-A (youth training programs). Provide $200 million more BA than contained in the working assumptions for this item. This would combine the two largest CETA training programs providing local program operators with increased flexibility to design programs meeting local needs. Categorical youth grants have created excessive paperwork at the local level and hindered the development of efficient programs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis U • June 11, 1981 HOUSE COMMITTEE: 'Education and Labor Program Policy Chanae Authorized Prdarams Youth Conservation Corps https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Eliminate S60 million authorization for Youth Conservation Corps program in 1982 through 1984 to eliminate funding consistent with reconciliation instruction. • J.,;ne 11, 1931 HOUSE COMMITTEE: Program: Energy and Commerce Policy Change • Direct Spending Programs o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Rail Pensions Adopt. House Committee Minority/Administration/ Senate Labor and Human Resources Committee legislation to comply with a recent court decision ("Gebbien) and restrict future windfall expenditures. This provison applies on a prospective basis only and would help preserve the rail industry pension system, which is threatened by insolvency. Medicaid Adopt the House Committee/Administration proposal (H.R. 3725) to reduce estimated Federal Medicaid payments $100 million in 1981 and to limit the growth in Federal expenditures to grow no faster than GNP deflator in subsequent years. The proposal would be revised, however, to allow 6% rather than 5% growth in 1982. States would be given additional flexibility to improve the efficiency and effectiveness of their programs. PHS Hospitals/ Merchant Seamen Adopt House Committee Minority/Reconciliation instructions/Administration proposal (H.R. 3223) to eliminate free care for merchant seamen and permit closure of the PHS hospitals, as of the end of FY 1981. House Merchant Marine and Fisheries Committee also eliminated the entitlement but not until the beginning of FY 1983, a year beyond the Administration's proposal. Both committees, however, have claimed savings for the hospital closure/entitlement elimination. PHS Commissioned Corps Physician Bonuses Adopt the House Committee Minority/Administration proposal (H.R. 3724) to give the Secretary of HHS the discretion to determine how much, if any, additional special pay to grant to PHS Commissioned Corps physicians. The Proposal also provides that Commissioned Corps physicians under an NHSC scholarship obligation to the Federal Government could not receive this additional special pay. June 11, 1981 HOUSE COMMITTEE: Railroad Procrams: Energy and Commerce ChanQing or Capping Authorizations • -Conrail Supsidies Adopt a modiff -d House Republican alternative version. This would entail having a five-member Conrail review .board reach a clear finding of profitability or non-profitability of Conrail in the near future, leading' to sale of Conrail as a single entity or the splitting up of Conrail, respectively. Authorization levels would be closely similar to those proposed by the Administration. Rail Branchline Phase out program over three years (1982-84). Obligation levels would decline fram $40 million in 1982, to $20 million in 1983, to zero in 1984. Support of law traffic volume rail branchlines is not a program of high Federal interest because interstate commerce is not affected. Amtrak Subsidies Provide no more than $735M in 1982, 1983, 1984, and require that Amtrak pay the interest on its debt to the FFB. Require ft 4*ij)MPiuUP.0% of costs by 1982. This reduction in funding is necessary because of the hign cost to the Federal taxpayer of providing rail passenger service to a limited portion of the population with limited if any fuel savings resulting. Northeast Corridor https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Adopt House Commerce minority proposal to cap NECIP authorizations for 1982 and 1983 at $200M and $185M, respectively. The reduction in funding is possible because electrification north of New York and 5_5___ of the signalling system is judged unnecessary to the entire project. They were included primarily bp increase trip times. Trip times mentioned in the legislation would increase 15 minutes in the north and 15 minutes in. the south. • • June 11, 1981 HOUSE COMMITTEE: Proaram: Energy and Commerce Policy Change Authorized Proarams ° https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Immunizations Grants Adopt House Committee Minority proposals at Baseline level of $26 million, $8 mon over Administration request. Three-year funding authS rization would be $78 million. Vonorc.al Diseases Grants Adopt House Committee Minority proposal at $3 million below 1982 Baseline of $43 million, $6 million below 1983 Baseline of $46 million, and $10 million below 1984 Baseline of $50 million. Three-year authorization would total $120 million. Administration proposal would have included this program in the health block grants with lower funding. Health Professions and Nurse Training Adopt House Committee Minority proposal, which annually authorizes $114 million for health professions training, $40 million for nurse training, and $123 million for National Health Service Corps field and scholarship programs for 1982-1984, or a total of $831 million. The 1982 levels are $9 million over the Administration request, with more funds for nursing and cutback in NHSC field program. Omnibus Health Programs Amendment Adopt House Committee Minority/Administration proposals (H.R. 3724) for the following programs: National Center for Health Care Technology, Health Services Research, Health Statistics; National Research Service Awards and Medical libraries' support. This would reduce authorizations by a total of $99 million in 1982. Health Planning Adopt Reconciliation instructions/Senate Labor and Human Resources/Administration proposal to phase out Federal subsidies for health planning by the end of 1983, and repeal the Health Planning Act. Savings of $100 million in 1982 funding. • HOUSE COMMITTEE: • • Program June 11, 1981 Energy & Commerce Policy Change Authorized Programs . Strategic Petroleum Reserve Adopt the House minority substitute to the Sharp bill. The minority substitute is consistent with the reconciliation instructions to move $3 billion of oil acquisition funds off-budget in FY 1982. This avoids creating false savings that can be applied to other reconciliation requirements. -The substitute's major features are: • ••11, . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Other DOE non -defense programs off-budget provision: $9 billion total over 3 years multi -year authorization/appropriation that provides flexibility in oil purchases sunset provision after FY 1984 off-budget financing can be used only for oil acquisition and drawdown Adopt the House minority substitute authorization covering programs in conservation and solar; energy information and regulation; uranium assessment, interim spent fuel storage, and remedial actions; renewable energy; uranium enrichment; commercial waste; and DOE Administration. The minority substitute is the same as Titles II and III (total) and Titles V through X (partial) of the Administration's authorization bill (H.R.3447). Adopt the House minority proposal for a 50% matching State and local energy flexible block grant of $200 million to be funded out of above 1982 authorization plus deferrals from 1981. Grant covers energy supply, conservation, and low income weatherization activities deemed necessary by the States. Repeals current DOE programs for weatherization, schools and hospitals, emergency preparedness, State conservation and extension. • [Ii June 11, 19.COMMITTEE: Foreign Affairs • • Proaram Policy Change Authorize T=r:)grams • . Foreign Affairs The G-L II approach would adopt the reconation recommendations of the Senate Foreign Relations Committee, which save S268 million in nine programs. For six of the programs the House and Senate are currently in agreement, and the amounts are identical with or slightly above the Administration request. In addition, the proposal would 1) defer payment of $40 million in assessed international organization contributions not proposed by the administration but not ultimately reducing U.S. suOport; 2) add $14 million to the Administration's request for voluntary UN contributions to organizations such as UNICEF, a relatively small sxS.rcen increase; and 3) permit a $4 million increase in grants to American Schools and Hospitals Abroad above the budget. The proposal would not require a cut in480 as proposed by the House but would leave P.L. 480 reductions to the Agriculture Committee. Foreign Affairs Budoet Reconciliation (1982 BA in Millions of Dollars) CB0 Baseline Admin. Senate House G-L II Committees Agree 1. Int'1 Narcotics Cont. 2. Int'l Disaster Asst. 3. Board for Int'l Broad. 4. Inter-American Foundation 5. Arms Control & Dis. Agency 6. Peace Corps 53 95 108 17 20 114 38 27 98 12 17 95 38 27 98 12 18 105 38 27 98 12 18 105 38 27 98 12 18 105 Committees Disagree 7. Amer. Schools and Hospitals 8. Intil Orgs. & Frogs. (Vol.) 9. Int'l Orgs. & Conf. (Assessed) 22 285 616 8 215 564 12 229 524 20 255 564 12 House Items Excluded by Admin. and Senate (1,437) PL480 (2) African Dev Foundation (456) ICA Operating Exps. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Total 1,331 (1,163) (452) 1,073 (452) 1,063 P. 524 (1,391) (2) (452) 1,137 1,063 One 11, 1981 O HOUSE COMMITTEE: Interior and insular Affairs • Program Change Program • Authorized Programs Parks Programs: Land and Water Conservation Fund .. . Urban Park Grants . Historic Preservation Fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Modify House Committee Minority proposal to limit authority to appropriate from the Land and Water Conservation Fund under current legislation to S95 million in 1982, $150 million in 1983 and $250 million in 1984. In 1982, the Land and Water Conservation Fund would conSist of: _ $45 million Federal land acquisition. _ S50 million state grants. Dark rehabilitation The sThiti initiative would be funded from the Land and Water Conservation Fund under new legislation. • June 11, 1981 HOUSE CO!.'IMITTEE: Proaram: Interior and Insular Affairs Policy Change Authorized Proaram ° https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Indian Health Service Adopt Reconciliation instructions/Administration proposal that provide savings of $101 million in 1982 below the Baseline, $136 mon in 1983 and S170 million in 1984. Funding totalling $635 mon in 1982 would be provided for clinical services, including addonal funds for alcoholism and alcohol abuse, improved dental care, and other preventive health measures. June 11, 1981 HOUSE COMMITTEE: • • : Program Interior and Insular Affairs Policy Change Authorized Programs https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trust Territory of the Pacific Islands Adopt House Committee Minority proposal to limit authority to appropriate for Trust Territory of the Pacific Islands to $72.5 million in 1982, $82 million in 1983 and S64 million in 1984. Purpose is to provide for near term needs of the terri.tories but to defer part of the U.S. contribution for building new government office buildings. lane 11, 1981 HOUSE COMMITTEE: Program Interior and Insular Affairs Policy Change Authorized Programs https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Water Resources Council Adopt House Committee Minority proposal to limit authority to appropriate for the Water Resources Council to $2.5 million in 1982 and zero in 1983 and 1984. The purpose is to close out the activities of the Water Resources Council. • • HOUSE COMMITTEE: Program: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 11, 1981 Merchant Marine and Fisheries Policy Change Direct Spending Program Merchant Seamen's Entitlement to Health Care Adopt the Reconciliation instruction/House Energy and Commerce Committee Minority/Administration proposal (H.R. 3223) to eliminate free care for merchant seamen and permit closure of the PHS hospitals at the end of 1981. This committee has eliminated the entitlement, but not until the end of 1982. • June 11, 1981 HOUSE COMMITTEE: Merchant Marine and Fisheries • Program Policy Change Authorize Programs ° https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Maritime Construction Subsidies Adopt the Administration's oriainal proposals. S 1017 is very similar to the Administration's bill except that it does not impose an annual limitation on Title XI loan guarantee commitments. This is not a major problem if the total statutory ceiling is not raised above the current S10 billion available for commercial vessels. Major provisions in the Administration proposal (and the Senate bill.): no new 1932 budget authority for construction differential subsidies. reduced level of R & D. maintenance of operating differential subsidies and operation and training at basically a current services level. . June 11 t 19 0 • HOUSE COMMITTEE: • Post Office and Civil Service a Program Policy Change Direct Spending Programs 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Federal Retirement Eliminate twice-a-year CPI indexing of annuities for retired government workers effective September 1981. Annual adjustments would insure that these workers receive protection against inflation equivalent to that afforded Social Security retirees. The Administration's proposal has been introduced as S.391 by Senator Roth, by request. . I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • HOUSE COMMITTEE: Pronram June 11, 1981 Post Office & Civil Service Policy Change Authorized Programs ° U.S. Postal Service Subsidy Reduce the originally estimated authorization for the Postal Service Subsidy of $1,825 million by $956 million in 1982. This is consistent with the reconciliation instructions and the Senate Government Affairs committee proposals. The Administration believes that the costs of postal services, on the whole, should be borne by rate payers not taxpayers. More details can be found on page 374 of "Additional Details on Budget Savings" (April 1981). • • • June 11, 1981 • HOUSE COMMITTEE: Proaram Post Office and Civil Service Policy Change Authorized Programs ° Ciyilian pay raises https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis k Adopt a proposal to cap Federal pay raises by 4.8% in FY 1982 and to impose similar restraints in 1983 and 1984 to control Federal personnel costs. Legislation placing the cap on white and blue collar pay would be included in the reconciliation bill. % June 11, 1981 HOUSE COMMITTEE: Procram Public Works and Transportation Policy Change Direct Spending Programs ° Federal-aid Highways Highway Safety Grants https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Establish obligation limitations of $8.13, $8.6B and $8.83 for 1982, 1983 and 1984, respectively, and incorporate multi-year (1982-1986) authorizations as included in the Administration's bills (S. 841 and H.R. 3197). The purpose is to establish multi-year funding levels and assure reconciliation savings in 1983 and 1984. Adopt the Administration's proposals in H.R. 3197, which are in the Senate reconciliation package (Title 4, Section 431-437). Tnese restrict eligibility to prograas of proven success in promoting highway safety and are an appropriate Federal function. The major features are: Authorizes appropriations at S77M eacn year. (1982-1984). -- Lapses all unobligated contract authority on September 30, 1981. -- Eliminates 18 safety requirements now levied on States. • June 11, 1981 • HOUSE COMMITTEE:Public Works & Transportation Program Policy Change • Direct Spending Programs https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Corps of Engineers, Civil Construction Adopt the reconciliation instruction and Administration proposal as proposed by House Committee Minority. Purpose is to reduce Corps of Engineers construction activity by $117 M. June 11, 1981 HOUSE COMMITTEE: • Proaram Public Wo -rks and Transportation Policy Chanae Direct Sppn,7!inq i-r_oorams o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EPA's Wastewater Treatment Grants Adopt House Minority Committee proposal that authorizes S100 million in FY82 for State management programs, but otherwise eliminates authorization to appropriate funds for 1982, as proposed by the Administration. EPA's Regulatory and Research Programs Reduce authorization to appropriate for lower priority research and development projects and regulatory programs. Both House and Senate authorizing committees have accepted this position. S June 11, 1981 HOUSE COMMITTEE: PrOgtdth Public Works and Transportation Policy Change •••• Authorized Programs • o Regional Commissions Eliminate ARC (except for the Appalachian Highway Program) and the Title V Regional Commissions in 1982. Mass Transit Adopt House proposed funding level for mass transit program in 1982. Add authorization ceilings at Administration levels for 1983 and 1984. Proposed reductions in new rail construction, operating subsidies and urban initiatives programs would focus remaining Federal assistance on capital projects designed to maintain and improve existing proven systems. Scc pages 280-283 of "Additional details" for further information. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 11, 1981 • HOUSE COMMITTEE: Program Public Works & Transportation Policy Change Authorize Programs Tennessee Valley Authority - Coal Gasification Demonstration https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Specifically prohibit any authorization for appropriations because a consortium of investors will derive Synthetic Fuels Corporation support for the project. Up to $92 million (50 million in 1981 and 42 million in 1982) of currently appropriated funds remain available for the project. The consortium will eventually purchase the Government's share of the project.. e's June 1 .1, 1981 HOUSE COMMITTEE: • Public Works and Transportation 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Program Policy Change Authorize Procrams ° Economic Development Administration (EDA) Adopt the Administration's proposal (which is identical to the Senate bill) which would terminate EDA in 1982. In addition to the $50 million which would be provided in 1982 for the orderly close out of EDA, an additional $155 million will be spent for transition funding during the remainder of 1981 and in 1982--as a result of the proposed rescission of $342 million being reduced to $188 million. Furthermore, provision is made for economic development assistance to rural areas and small cities through the availability of an economic development block grant (CDBG) which would provide $1.1 billion in 1982 and $1.2 billion in 1983 which is earmarked for non -entitlement areas. EDA is not needed because economic expansion and job creation will be stimulated more effectively through the President's overall economic recovery program. (See pp. 55-56 in "Additional Details" for a complete description). iiv • HOUSE COMMITT E: Program e 11, 1981 Science and Technology Policy Chanae . Authorize Programs . . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis National Science Foundation . Adopt proposed minority bill. • June 11, 1981 HOUSE COOTTEE: Prooram 111 House Science and Technology Policy Change Authorized Programs https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ▪ DOE non -defense programs Adopt the Administration's DOE authorization bill (H.R.3447). Programs covered include: Fossil Energy R&D, conservation R&D, Solar R&D, nuclear fission, magnetic fusion, geothermal energy, electric e nergy systems, energy storage systems, supporting research, life sciences e esearch and nuclear medicine, high e nergy physics, nuclear physics, uranium e nrichment process development, uranium e nrichment advanced isotope separation technology, and environmental R&D. June 11, 1981 HOUSE COMMITTEE: Program Smal Business Policy Change • Authorize Progr a- ms o SBA Disaster Loans With 3 exceptions, adopt House Small Business Committee package, which assumes: (1) a S610 million cap on physical disaster loans; (2) a 2 percentage point increase in disaster loan interest rates; (3) a loan limit of 85% of uninsured loss; (4) $40 million for regulatory compliance loans; and (5) transfer of unobligated balances from the disaster loan fund to the business loan funS. The three exceptions to provisions in the House package are the following: (1) incluI- the S40 million for regulatory compliance within the S610 million cap; (2) eliminate disaster loans to credit-worthy borrowers; and (3) delete the related provision for loan asset sales. The primary purpose of these changes is to restrict Federal disaster assistance to victims that have no alternative sources of financing. o SBA Business Loans Adopt the House Small Business Committee S roposal to increase interest rates to the Government's cost of money (excluding 3% loans to the handicapped). Reduce direct loan levels to S180 million, as proposed in the Senate, but maintain guaranteed loans at S3.2 billion as approved by the House. Accept House Committee program levels for Surety Bond (S1.2 billion), Pollution Control ($250 million), Lease guarantees (S4 million), and Salaries and Expenses ($227 milliIn). The primary purpose of these changes is to reduce Federal intervention in the credit market and to eliminate artificial demand for highly subsidized loans. o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Equal Access to Justice Adopt the House Committee proposal ID restrict the eligibility of claimants for fees pursuant to the Equal Access to Justice Act (P.L. 96-481). a June 11, 1981 HOUSE COY1MITTEE: • Procram Veterans Affairs Policy Chance rect Sin .m/ Procrams (Accept House Veterans Affairs Committee reconciliation proposals.) o -Surial benefits Eliminates burial benefits to veterans with an annual income of S20,000 and an estate valued at $200,000. No bill introduced in House, but S.1062 would authorize proposal. o Dental benefits Eliminates eligibility for Class II dental benefits -- outpatient care for non-conpensable dental conditions following discharge from military service. This is the same as the Administration's proposal described in "Additional Details" on page 309 and contained in H.R.2048. • Flicht and Correspondence Training • GI bill education loans https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Eliminates authority for veterans, service-persons, and dependents to receive assistance for flight and correspondence training effective October 1, 1981. Legislation was introduced as an Administration proposal. (H.R.1903) See "Additional Details", page 311. Eliminates eligibility for loans -for veterans and survivors taking training under the GI bill. No legislation has been introduced in the House, but S. 1065 would authorize proposal. • • June 11, 1981 HOUSE COMMITTEE: • • Proaram: Ways and Means Policy Chance Direct Spending Proarams https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Medicare -- Periodic Interim Paymnnts (PIP) Adopt Senate Finance/House Ways and Means/Administration proposal to repeal the artificial shift of Medicare PIP hospital reimbursement from FY 1981 to FY 1982. Adopt House Ways and Means/Administration proposal to phase out the PSRO program by 1984. Miscellaneous Medicare Reductions Adopt a combination of proposals by the Senate Finance Committee and Ways and Means Committee to impose additional beneficiary cost-sharing, where appropriate, and reduce excessive provider reimbursements. • HOUSE COMMITTEE: Program • • June 11, 1981 Ways and Heans Policy Chanae • Direct Spending Programs Social Security: 0 Minimum Benefit ° Student Benefit As proposed by the House Committee, eliminate new minimum benefit awards in January 1982. In addition, along the lines proposed by the Administration and the Senate Finance Committee, eliminate all Social Securuity "minimum benefit" payments in April 1982. For those with other pension income (such as Civil Service Retirement benefits) this benefit add-on represents an unearned "windfall." Truly needy benearies would not have their incomes reduced since increased SSI S.nefits would offset any OASDI reduction dollar-fordollar. Adopt Senate proposal to: (1) eliminate new adult student benefits after June 1982, (2) eliminate adult student benefit during summer vacations, and (3) to current students by 25% reduce 51h11 annually, with no CPI after July 1981. The benefits are unrelated to educational costs, school I- rformance or financial need. o Lump-Sum Death As proposed by the Administration and the House and Senate Committees, limit lump-sum death payments to either a surviving spouse or children of a deceased worker receiving survivor's benefits. Benefits would no longer be paid directly to funeral homes or estates. o Megacap for DI Limit a disabled individual's public disability payments so as to not exceed prior income while working. The current failure to coordinate multiple benefits permits inI ividuals to receive higher income through disability payments than while working, thereby reducing the incentives to work. o Recency of Work Limit disability benefits to individuals who have worked in 6 out of previous 13 calendar quarters. This reinstitutes a provision originally in Disability Insurance and would better relate DI protection to loss of covered income due to disability. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • HOUSE COMMITTEE: Program • • June 11, 1981 Ways and Mans Policy Change • Direct Spending Programs 0 Social Security: Rounding of Benefits As proposed by the House and Senate Committees, round monthly benefit to the next lower dollar instead of the next higher dime. O Terminate Parent's Benefits When Child Attains Age 16 As proposed by the House Committee, terminate a parent's benefit when the youngest child attains age 16 instead of age 18 as current law provides. O Pension Plan Reimbursement As proposed by the Administration and the House and Senate Committees, authorize Social Security reimbursement for ERISA-related work done on behalf of the pension plans. o Workers Compensation Offset Against DI As proposed by the Administration and the Senate Finance Committee, apply Workers Compensation offset against Social Security Disability Insurance benefits with the first month of entitlement to both Workers' Compensation and DI and extend this provision thru age 64 rather than age 61 as currently. o Funding of Vocational Rehabiliation As proposed by the Administration and the House and Senate Committees, terminate advance funding of vocational rehabilitation. o Begin Payment with First full Month of Entitlement As proposed by the House Committee, begin paying benefits with the first full month in which an individual is entitled to benefits, rather than the month in which they become entitled. Currently, individuals can receive a whole month's payment even if eligible only on the last day of the month. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . • HOUSE COMMITTEE: i t • Program • June 11, 1981 Ways and Means Policy Change Direct Spending Programs o Supplemental Security Incomes (SSI) Retrospective Accounting Accept Ways and Means version. Use actual past income to determine eligibility. Change from a quarterly prospective to a retrospective SSI accounting period. o Supplemental Security Income (SSI) Food Stamp Cashout Accept Ways and Means added item. Any State that previously increased its supplementary payments to include the bonus value of food stamps, and continues to pass-through Federal cost-of-living increases as required under Section 1618 would be allowed to remain in cashout status. Supplemental Security Income (SSI) Rehabilitation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Adopt Senate Finance -Committee proposal to eliminate SSI funding for vocational rehabilitation. This would conform to the House and Senate Commitees' actions in Title II (OASDI). • H3USE COMMITTEE: Program Ways and Means Policy Change Direct Spending Programs ° Aid to Families with Dependent Children, (AFDC), and Child Support Enforcement (CSE) Adopt Senate Finance Committee proposals which closely resemble the Administration's original proposals in the "Social Welfare Amendments of 1981." These proposals would target benefits on the neediest, refocus AFDC as a temporary safety net, and improve program administration in order to deter fraud and avoid waste and abuse, primarily through: •••••••• •••••••••• 1.••• revising earned income disregards. counting stepparent and other income and permitting offsets for food stamps and housing subsidies. requiring employable recipients to participate in new community work experience programs. requiring monthly retrospective accounting and monthly income reporting. ••••••••• • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis improving the child support enforcement collection system. • • HOUSE COMMITTEE: Proaram June 11, 1981 Ways and Means Policy Chanae Direct Spendina Programs • Unemployment insurance for ex-servicemembers Adopt Senate Finance Committee package (except Sec. 46, Loan Reform Mechanism), which closely tracks the Administration proposal in2880. The main purpose is to prevent payment of unemployment compensation to those who voluntarily quit the service, bringing the treatment of ex-military more in line with that of civilians who quit S. Unemployment insurance: Extended benef -triggers Adopt Senate Finance Committee package (except Sec. 46, Loan Reform Mechanism), which closely tracks the Administration proposal in H.R. 2880. The main purpose is to provide extended unemployment insurance benefits only in States experiencing major unemployment problems. The major features are: =MP -- • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Unemployment insurance: 20 week work requirement for extended benefits elimination of the national trigger. revision of the trigger rate calculation to exclude extended benefit claimants from count. Increase State trigger rates (as of October 1, 1982) Adopt Senate Finance Committee package (except Sec. 46, Loan Reform Mechanism), which closely tracks the Administration proposal in H.R. 2880. The main purpose is tS limit longer periods of benefit payments tS those with a significant attachment to the work force. The proon would make extended benefits payable only to those who had worked at least 20 weeks during the previous year. • June 11, 1981 a HOUSE COMMITTEE: Proaram Ways and Means Policy Change Direct Spending Programs https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trade Adjustment Assistance (TAA) reforms Adopt S.1201 as Finance Committee. tracks the A in H.R. 2922. The m convert TAA from mero a readjustment progrs are: II repoIII! OHM •Mia Pay TAA benefits only to those who have used up their UI benefits. Pay TAA and UI benefits combined for only 52 weeks. - .1•1m. -- Make TAA benefit amount equal to the UI benefit amount. Provide more training and employment assistance. June 11, 1981 • 111 BLOCK GRANTS SOCIAL SERVICES CONSOLIDATION. The reconciliation instruction is the Administration's proposal, and Gramm-Latta II would conform to the instruction. Ten social services programs would be included in the social services block grant. Rehabilitation Services would be authorized as a separate block grant, and Developmental Disabilities would be consolidated into a maternal and child health block grant. The ten programs which would be included in the social services block grant are as follows: • o • • o • o •o o Title XX Social Services Title XX Day Care Title XX State and Local Training Child Welfare Services Child Welfare Training Foster Care Adoption Assistance Child Abuse Runaway Youth Community Services Administration (excluding economic development) As in the Administration's proposal, Juvenile Justice activities and legal assistance to the poor would be authorized block grant activities. The social services block grant would eliminate unnecessary administrative requirements which result in substantial overhead costs and service delivery system inefficiencies. As a result, resources consumed by unnecessary paperwork and duplicative activities would be devoted to providing needed services. REHABILITATION SERVICES CONSOLIDATION. This proposal would provide States a new, flexible source of funding for rehabilitation services. Under the block grant, States would be able to allocate rehabilitation resources to activities which meet the purposes of the current Rehabilitation Services program without regard to present Federal restrictions. The elimination of unnecessary Federal limitations would allow States to target rehabilitation funds to activities tailored to meet priority service needs of their residents, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • 2 HEALTH SERVICES CONSOLIDATION. These block grants are the Administration's health program block grants, reconfigured in accordance with the minority substitute. There would be three block grants, as follows: Oft • Health Services Block Grant • Primary Care Services -- Community Health Centers -- Migrant Health Centers -- Black Lung Clinics - Primary Care R&D • Home Health Services • Emergency Medical Services • Mental Health Systems • Substance Abuse Programs -- Alcoholism/Alcohol Abuse - Drug Abuse Preventive Health Service Block Grant 'Incentive Grants o Risk Reduction/Health Education o Fluoridation • Rodent Control o Hypertension Control • Adolescent Health o Family Planning Maternal and Child Health Block Grant 'Maternal & Child Health -- Grants to States SSI Children • Genetic Diseases • Hemophilia o Lead-Based Paint Poisoning • Sudden Infant Death Syndrome • Developmental Disabilities To ensure the resources provided would result in continued high levels of services of the local level, State administrative costs would be limited to ten percent of the grant amount,' and States would be required to consider the existing distribution of funds in making allocations among activities and to service providers. States also would consider local input in making distribution decisions. Thus, the health block grants would establish a system of responsible and responsive decentralized decisionmaking, one in the needs and priorities of the intended beneficiaries of Federal funds would determine how those funds are used. HARDSHIP ASSISTANCE CONSOLIDATION. This proposal reflects the reconciliation instruction except the funding level would be increased by 5475 million over the instruction and the AFDC Emergency Assistance program would be maintained as a Federal matching program. Under the block grant, States could provide energy assistance to those most in need and use funds for cost-effective activities such as low-cost weatherization. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • June 11, 1961 BLOCK GRANT SUMMARY (S in millions) 1982 1983 1984 BA 0 BA 0 BA 0 -645 -214 -762 -575 -890 -784 -1,501 -1,399 -1,769 -1,740 -2,014 -1,994 Rehabilitation Block Grant -261 -258 -280 276 -297 -294 Hardship Block Grant -385 -385 -677 -677 -989 -989 -2,792 -2,256 -3,488 -3,268 -4,190 -4,061 Health Block Grants Social Services Block Grant https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOTAL S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) June 12, 1981 • SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 ARMED SERVICES Direct: Strategic stockpile Annual COLA for retired military Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Senate Comm. 1983 1984 BA BO BA BO BA BO Armed Sys. -572 -572 -572 -572 -226 -226 Armed Sys. -394 -394 -327 -327 -285 -285 -966 -966 -899 -899 -511 -511 • • June 12, 1981--Page 2 SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 BANKING, FINANCE, AND URBAN AFFAIRS Authorizations: Rural housing insurance fund Senate Comm. BA 1983 BO 1984 BA BO BA BO -165 -38 -146 -154 Banking -123 National Consumer Cooperative Bank Banking -129 -137 -139 -152 Community development support (Block grants & UDAG) Banking -469 -47 -892 -219 HUD rehabilitation loans Banking -137 -167 -147 -205 -156 -130 HUD neighborhood self-help and planning assistance grants Banking -45 -29 -49 -37 -52 -48 Subsidized housing Banking -10,921 -89 -13,023 -373 -14,880 -748 Export-Import Bank Banking -1,349 -111 -1,469 -464 -1,578 -775 -13,173 -580 -15,849 -1,450 -16,977 -2,282 Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -130 - -389 • • June 12, 1981 --Page 3 SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 DISTRICT OF COLUMBIA Direct: Loans to the District of Colombia Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Senate Comm. Gov. Aff. 1983 1984 BA BO BA BO BA BO -39 -40 -56 -64 -72 -79 -39 -40 -56 -64 -72 -79 • • June 12, 1981 --Page 4 • F SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 1983 1984 Senate Comm. BA BO BA BO BA BO Labor -404 -310 -1,302 -1,116 -2,261 -2,020 Child nutrition--summer feeding Ag. -147 -142 -160 -158 -172 -169 Special milk Ag. -95 -93 -99 -98 -102 -101 Child nutrition--school lunch Ag. -1,397 -1,384 -1,465 -1,449 -1,606 -1,584 Labor -465 -385 -538 -529 -613 -604 Education block grant (elementary and secondary) Labor -1,455 -1,051 -1,860 -1,586 -2,332 -1,935 Pell grants (BEOGs) Labor -711 -544 -1,078 -750 -1,737 -1,048 National Endowments for the Arts and Humanities Labor -165 -84 -182 -173 -195 -187 CETA, public service employment Labor -3,800 -3,805 -4,223 -4,192 -4,567 4 4,532 CETA, training and youth Labor -1,916 -861 -1,939 -1,647 -2,514 -2,243 Social services consolidation 1/ Labor -329 -329 -407 -407 -485 -485 -116 -13 -133 -81 -144 -124 -60 -60 -60 -60 -60 -60 EDUCATION AND LABOR Direct: Guaranteed student loans Authorizations: Impact aid Juvenile justice grants 1/ Judiciary Youth Conservation Corps Energy Social services consolidation --hardship (energy) 1/ Labor -847 -847 -950 -950 -1,067 -1,067 Vocational education Labor -135 -175 -306 -200 -379 -346 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 12, 1981 --Page 5 • • SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 EDUCATION AND LABOR Federal Employee Compensation Act Committee total 1/ This part of the social services Commerce Committees. Ways and Means This reduction is related to the Labor, Energy and Commerce, and Ways https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1983 1984 Senate Comm. BA BO BA BO BA BO Labor -76 -76 -162 -162 -174 -174 2,118 -10,159 -14,864 -19,558 -18,408 -16,679 consolidation is under the jurisdiction of the Education and Labor and the Energy and has sole jurisdiction over another part. proposed social services consolidation, which is under the jurisdiction of the Education and and Means Committees. • • June 12, 1981 --Page 6 SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 ENERGY AND COMMERCE Direct: * Basic and preventive health services block grant Senate Comm. Finance Rail pensions Labor Medicaid cap Finance Merchant seamen entitlement 1/ 1983 1984 BA BO BA BO BA BO -132 -44 -157 -119 -183 -162 -248 -82 -104 -873 -768 -1,221 -1,111 -1,674 -1,570 Labor -92 -92 -179 -179 -191 -191 Commer. -85 -17 -79 -50 -107 -74 AMTRAK subsidies Commer. -313 -271 -404 -460 -506 -384 Conrail subsidies Commer. -460 -385 -165 -175 -300 -265 Northeast Corridor improvement project Commer. -186 -8 -124 -40 Regulation of health care (health planning) . Labor -100 -59 -168 -89 -180 -159 * Social services consolidation 2/ Labor -329 -329 -407 -407 -485 -485 * Basic and preventive health services block grant Labor -512 -169 -606 -457 -710 -625 Strategic petroleum reserve Energy -3,000 -3,000 -3,000 -3,000 -3,000 -3,000 -99 -49 -124 -94 -150 -126 -3 -1 -6 -4 -10 -7 Authorizations: Low volume railroad branch lines Omnibus health amendments Venereal diseases https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • -85 June 12, 1981 --Page 7 • SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 ENERGY AND COMMERCE P1-IS Cap Commissioned Bonuses Health professions and nurse training Committee total Senate Comm. 1983 1984 BA BO BA BO BA BO -3 -3 -3 -3 -3 -3 -291 -143 -336 -263 -385 -335 -6,478 -5,586 -6,979 -6,533 -7,884 -7,575 • 1/ The merchant seamen entitlement is under the jurisdiction of both the Energy and Commerce and the Merchant Marine and Fisheries Committees. 2/ This part of the social services consolidation is under the jurisdiction of both the Energy and Commerce and the Education and Labor Committees. The Ways and Means Committee has sole jurisdiction over another part. * See block grant description. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • June 12, 1981 --Page 8 SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE in millions of dollars) 1982 FOREIGN AFFAIRS Authorizations: Various changes Senate Comm. For. Rel. 1983 BA BO BA -267 -165 -342 1984 BO BA BO -288 -376 -318 -288 -376 -318 .-.. Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -267 -165 -342 • • June 12, 1981 --Page 9 SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 INTERIOR AND INSULAR AFFAIRS Authorizations: Park programs Indian Health Service Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Senate Comm. 1983 1984 BA BO BA BO BA BO Energy -655 -318 -704 -516 -666 -596 Labor -101 -21 -136 -67 -170 -103 -756 -339 -840 -583 -836 -699 • • June 12, 1981--Page 10 SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 MERCHANT MARINE & FISHERIES Direct: Merchant seamen entitlement 1/ Authorizations: Maritime construction subsidies Committee total Senate Comm. Labor Commer. 1983 1984 BA BO BA BO BA BO -92 -92 -179 -179 -191 -191 -147 -15 -60 -32 -71 -60 -239 -107 -239 -211 -262 -251 • 1/The merchant seamen entitlement is under the jurisdiction of both the Energy and Commerce and the Merchant Marine and Fisheries Committees. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • June 12, 1981 --Page 11 MIL SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 POST OFFICE & CIVIL SERVICE Senate Comm. 1983 BA BO BA 1984 BO BA BO Direct: Federal retirement-annual COLA Gov. Aff. - -513 Authorizations: Postal Service subsidies Gov. Aff. -956 -956 -1,077 -1,077 -1,261 -1,261 Gov. Aff. -3,781 -3,694 -5,227 -5,247 -6,129 -6,110 -4,737 -5,163 -6,304 -6,738 -7,390 -7,728 Civilian pay raises--reform Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -414 -357 • • June 12, 1981 --Page 12 MOM SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 PUBLIC WORKS AND TRANSPORTATION Senate Comm. BA 1983 BO BA 1984 BO BA BO Direct: Federal aid highways Env.&PW Authorizations: Corps of Engineers construction Env.&PW -117 -88 -154 -139 -208 -192 Regional commissions Env.&PW -188 -103 -206 -185 -220 -191 TVA--coal gasification demonstration Env.&PW -202 -95 -223 -155 -242 -211 Urban mass transit Banking -1,321 -200 -1,878 -735 -2,514 -1,410 Highway safety grants Commer. -190 -40 -209 -90 -227 -145 Economic Development Administration Env.&PW -619 -227 -668 -452 -713 -211 -6,137 -938 -3,338 -2,656 4 4,124 -3,725 Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -185 - -900 - -1,365 • • June 12, 1981 --Page 13 0 SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE in millions of dollars) 1982 SCIENCE AND TECHNOLOGY Authorizations: National Science Foundation Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Senate Comm. Labor 1983 1984 BA BO BA BO BA BO -99 -112 -112 -157 -84 -146 -99 -112 -112 -157 -84 -146 • • June 12, 1981 --Page 14 SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 SMALL BUSINESS Senate Comm. 1983 1984 BA BO BA BO BA BO Authorizations: SBA disaster loans SB -110 -114 -145 -32 -205 -148 SBA business loans SB -476 -276 -438 -510 -349 -417 586 390 583 542 554 565 Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 12, 1981 --Page 15 • - SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 VETERANS AFFAIRS Direct: GI bill flight and correspondence • Other savings Committee total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Senate Comm. 1983 1984 BA BO BA BO BA BO VA -32 -32 -28 -28 -24 -24 VA -78 -84 -80 -85 -82 -86 -110 -116 -108 -113 -106 -110 • • June 12, 1981--Page 16 • SUBSTITUTE RECONCILIATION BILL SAVINGS (GL-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 WAYS & MEANS Direct: * Social services grant consolidation Senate Comm. Finance 1983 1984 BA BO BA BO BA BO -939 -939 -1,101 -1,101 -1,248 -1,248 Medicare--PIP Finance -692 Other medicare savings Finance -959 -1,340 -1,615 Social security--minimum benefits Finance -510 -1,070 -1,070 Social security--student benefits Finance -567 -1,580 -2,033 Social security--miscellaneous Finance -38 -49 -61 Social security—lump sum death benefit Finance -200 -210 -215 Social security--disability megacap Finance -50 -75 -100 Social security--work recency (DI) Finance -124 -350 -629 Social security--first full month Finance -190 -220 -240 Social security--rounding Finance -80 -272 -314 Social security—mother's benefits Finance -30 -88 -496 Social security--vocational rehabilitation .... Finance -87 -86 -73 Supplemental security income--eligibility by actual income (retrospective) Finance -30 -30 -60 -60 -60 -60 Supplemental security income--other changes Finance -50 -50 -50 -50 -50 -50 AFDC--cost reductions Finance -1,123 -1,123 -1,363 -1,363 -1,426 -1,426 Unemployment insurance for ex-service members Finance -265 -265 -254 -254 -244 -244 Unemployment insurance extended benefit trigger Finance -700 -1,218 -700 -472 -100 -192 Unemployment insurance--20-week work requirement for extended benefits Finance https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -11 June 12, 1981 --Page 17 -10 • MINIM\ SUBSTITUTE RECONCILIATION BILL SAVINGS (GE-II) RECONCILIATION BY HOUSE COMMITTEE (in millions of dollars) 1982 WAYS & MEANS lrade adjustment assistance--follow-on unemployment insurance--52-week limit Authorizations: Social services--child welfare * BA Finance -1,295 Finance Social service hardship consolidation (energy) Labor Professional standards review organizations Finance Committee total * Senate Comm. 1983 BO BA 1984 BO BA -1,295 -800 -800 -450 -450 -54 -54 -65 -65 -71 -71 -372 -372 -475 -475 -592 -592 -41 --- -9 10,032 4,241 11,198 -21 4,828 8,894 4,868 See block grant description. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BO June 12, 1981 --Page 18 • EXECLO/E OFFICE OF OFFICE OF MANAGEMEN WASHINGTON. D.0 HE PRESIDES AND BUDGET 20503 June 11, 1981 49 RoAr3 CF GOVERNORS OF 14. FEfiERAL RESERVE: SYSTF 1981 JUN 15 PC 10: 05 RECEIVES OFFICE 0/: HE CH4IR04%. M-81-9 MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES FROM: DAVID A. STOCKMAN DIRECTOR SUBJECT: Certain Communications Pursuant to Executive Order 12291, "Federal Regulation" Regulatory relief is one of the cornerstones of President Reagan's program of economic recovery. As an important step in achieving regulatory relief, on February 17, 1981, the President issued Executive Order 12291, "Federal Regulation. This memorandum explains how the Presidential Task Force on Regulatory Relief and the Office of Management and Budget (OMB) will communicate with the public and the agencies regarding proposed regulations covered by E.O. 12291. It also describes certain obligations of the public and agencies in this regard. A major purpose of the Executive Order is to ensure that, the extent permitted by law, regulatory decisions are based upon sound analysis of the potential consequences. Tuward this end, a comprehensive factual basis is essential to assist agencies and other interested parties in assessing the economic and other ramifications of proposed regulations. Under the Executive Order, both the Task Force and OMB will be reviewing factual materials related to regulatory proposals Both the public and the agencies should understand that the primary forum for receiving factual communications regarding proposed rules is the agency issuing the proposal, not the Task Force or OMB. Factual materials that are sent to the Task Force or OMB regarding proposed regulations should indicate that they have also been sent to the relevant agency. Pursuant to this policy, the Task Force and OMB will regularly advise those members of the public with whom they communicate that relevant factual materials submitted to them should also be sent to the agency for inclusion in the rulemaking record. Accordingly, agencies receiving such materials from the public should take care to see that they are placed in the record. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 On occasion, the Task Force staff and OMB will receive or develop factual material which they believe should be consideree by an agency during a particular informal rulemaking. In accordance with advice provided by the Department of Justice, such material, when submitted to an agency for its consideration, will be identified as material appropriate for the whole record of the agency rulemaking. Two additional matters should be noted. First, our procedures will be consistent with the holding of and policies discussed in Sierra Club v. Castle, No. 79-1565, slip op. at 212-20 (D.C. Cir. April 29, 1981). Second, these procedures apply only to informal rulemaking proceedings and are not in any sense intended to affect the more stringent ex parte rules applicable to agency adjudications and formal rulemakings. (Such proceedings are expressly intended by Congress to be more in the nature of formal judicial proceedings and involve bars against various forms of ex parte communication.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis •k-• klia. Virginia H. 44,kaL211_ Special Asaistant to thePresident and Director U.S. Office of Consur Al:fairs The Wilite HOUSe Washington, A.C. 20500 Dear Ms. inauarl Thank you for your letter of, June 10 requesting an update ot the Federal Reserve 4oard's listinci for your Con9res8l0n4' Liaison i.andr000k. Lnclos rewit are our changes to that listing. Vlease let me know if I cail be of further assistance. Sincerely, (Signed) Donald J. Wino Donald J. 'pdnn Assistant to the Lc:0.rd eiwi.kzrt! PJT boo; Sandy https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis *oi.fe (t8WH-18) 4I/1 FEDERAL RESERVE BOARD 20th and Constitution Avenue, N.W. Washington, D.C. 20551 FEDERAL RESERVE BOARD . . . conducts monetary TO-ficy 15-3/ iniTuen-Eing the availability of money and credit in the economy; supplies the public with currency and coin; operates a nationwide network for clearing checks and electronic payments; acts as fiscal agent for the Treasury Department and issues savings bonds and other treasury securities; examines member banks; and writes regulations for oonsumer credit protection laws. Congressional Liaison Officials 0 (see attached) J. Winn Specid istant to the Board of Governors o ederal Reserve System (202) 452-3457 J. P. Brenneman Special Assistant to the Board of Governors of the Federal Reserve System .1 452-3263 Turn -Around Time • The interim response is sent within 1 week of receipt. The final report can be expected within 2 weeks. Publications InTormation Publications Services (202) 452-3245 Ten Most Recuested Publications The Consumer Handbook to Credit Protection Laws Federal Reserve Purposes and Functions Equal Credit Opportunity Act - Housing Equal Credit Opportunity Act - Women Truth in Leasing Fair Credit Billing How to File a Consumer Credit Complaint If You Borrow to Buy Stock If You Use a Credit Card What Truth in Lending Means to You " moss"""'""usgm"•••••"•`",10 N lice in Debitland Adaitional Information https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Commercial banks can be either federally chartered or state charterea and the supervision of these financial institutions is divided among several federal agencies. Federal Reserve System supervises only state chartered banks that are System members, while insured state banks that do not hold membership in the Federal Reserve System are supervised by the Federal Deposit Insurance Corporation. Federally chartered banks are called national banks and have the word "National" or "N.A." in their titles. These banks are supervised by the Office of the Comptroller of .the Currency. Respective state banking authorities supervise non-insured banks. The Federal Reserve will receive complaints about any bans and will refer complaints outside its authority to the proper regulatory agency. Immediate information about class of bank designations may be obtained by calling the Board on (202) 452-3845. Besides commercial banks there are two other classifications of financial institutions -- savings and loan associations ard credit unions. The Federal Home Loan Bank board supervises savings and loan associations and the National Credit Union Administration has responsibility for Federal credit unions. 27 Congressional Liaison Officials Donald J. Winn Assistant to the Board of Governors of the Federal Reserve System (202) 452-3457 William R. Maloni Special Assistant to the Board of Governors of the Federal Reserve System (202) 452-3352 Anthony F. Cole Special Assistant to the Board of Governors of the Federal Reserve System (202) 452-3263 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • 00ARD OF DF THE WHITE HOUSE WAS 1981 JWi 12 VEPNORS IE SY3TEI nm 08 June 10, 1981 REcEivE- r) OFFICE OF iHE CHAIRM4t: The Honorable Paul A. Volcker Chairman Federal Reserve Board Washington, D.C. 20551 Dear Mr. Volcker: In May 1980, the U.S. Office of Consumer Affairs developed the Congressional Liaison Handbook for Congressional caseworkers to use when trying to resolve constituent complaints or answer inquiries. Our purpose was to make the process of serving constituents' needs more efficient for Congressional staffers and the federal agencies. The Handbook contained not only the names and telephone numbers of Liaison Officials in 36 federal agencies, but also listed information regarding turn -around time, publications and special information pertaining to a particular agency. The response to this Handbook has been overwhelming and in fact, the demand for copies has tripled our projected estimates. We are now in the process of updating the Handbook, and by copy of this letter I am forwarding your Agency's page(s) of the publication to the individual listed below, and I am asking that changes in the names, phone numbers, publication and special information be made so that we may distribute an accurate guide. It is my hope that these corrections can be made as soon as possible and that we will receive a corrected copy of your Agency's page(s) no later than June 22. If you or the designated member of your staff have any questions concerning this update, please call Barbara Johnson at (202) 755-8820. Thank you for your assistance in this project. Sincerely, . . Virginia H. Knauer Special Assistant to the President and Director U.S. Office of Consumer Affairs Enclosure(s) CC: Donald J. Winn Assistant to the Board of Governors Federal Reserve Board Washington, D.C. 20551 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • THE WHITE HOUSE WASH I NGTON May 8, 1981 MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES SUBJECT: The President's Executive Exchange Program The President's Commission on Executive Exchange arranges a one-year exchange in the opposite sector for outstanding mid-level career executives from the Federal government and from private industry. The Commission Staff also arranges for a year-long educational program for these Executives. The President has asked me to transmit the following requests to you regarding your agency's participation in the Exchange Program: o Please designate a Presidential Appointee, preferably yourself, to serve as liaison to the Program. Let my Special Assistant, Kate Moore know within one week whom•you have designated. • o Please agree to host 1 private sector executive within your organization. The executive will start in early September, 1981 and should report to you. Details of this assignment will be worked out at a meeting between the Commission Staff and you. rt o Please try to sked to spyeoua k wactioclolmtmhfoei dnaPd aI believe be receiving such a requ a i you a re E xec utives. nngtief. You ma y ext few weeks. The President strongly supports this Program and this Administration looks forward to increased communication and understanding between business and government as a result of your agency's participation in the Executive Exchange Program. Thank you for your cooperation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AMES A. BAKER III Chief of Staff BOARD OF GOVERNORS P.- THE FEDERAL RESERVE SYSTEM WAS FREDERICK H. SCHULTZ VICE CHAIRMAN May 20, 1981 Ms. Virginia H. Knauer Special Assistant to ePresident The White House 1600 Pennsylvania Avenue, N.W. Washington, D.C. 20500 Dear Ms. Knauer: I am responding to your memorandum of April 28, 1981, concerning the International Year of Disabled Persons (IYDP) - 1981. The Board of Governors of the Federal Reserve System is in the process of developing a program for the hiring, placement and advancement of disabled persons which will include an Affirmative Action Plan, training and awareness activities, and public information and outreach programs. The "Executive Summary of Federal Involvement in IYDP," produced by the Federal Interagency Committee, provides a number of suggestions that can be incorporated into the Board's policies and activities. Your office will be kept informed as plans are developed. The Board is pleased to join with the Federal government in its efforts. Sincerely, isiznil F. H. Schultz WH-16 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 80ARD OF THE WHITE HOUSE WASHINGTON April 28, 1981 it0E1Z141 1981 GOVERNOR S iHE I;E5E-1-4Pe Ys 7:7 29 II: 43 R OFFICE orECEIVEO NE CHAiRtti A' MEMORANDUM FOR THE HONORABLE PAUL A. VOLCKER SUBJECT: International Year of Disabled Persons - 1981 President Reagan pledged the support of his Administration to commemorate the International Year of Disabled Persons in the United States through a proclamation signed on February 6, 1981. "Today there are 35 million disabled Americans who represent one of our most under-utilized national resources. Their will, their spirit, and their hearts are not impaired, despite their limitations ... I am proud to pledge the cooperation of my administration and the Federal agencies under my jurisdiction, including the Federal Interagency Committee for the International Year of Disabled Persons." Plans initiated for celebrating the International Year of Disabled Persons are included in a document "Executive Summary of Federal Involvement in IYDP," produced by the Federal Interagency Committee. This document is being circulated throughout the United States as well as all member nations of the United Nations as our Government's response to the needs of disabled persons. An update is scheduled for late 1981. I hope that the initiatives already planned by your agency will continue. Consider, if you haven't already done so, the following activities: increase the participation of disabled persons in agency policymaking, encourage events to enhance your employees' understanding of the positive benefits of working and socializing with the disabled, and assure that your agency's plans are included in the "Executive Summary" update. As Special Assistant to the President, with responsibility including disabled persons, I have had an opportunity to meet with many groups who are actively involved in IYDP. I hope that we can give exemplary leadership to these groups by the visible involvement of Federal agencies and join President Reagan in his support for this truly beneficial goal for disabled persons. Please let me know of your plans. /e v ,ST ginia H. Knauer Specia ssistant to the President https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • lay Sy 19$1 Mr. David A. Stockman Director Executive Office of the President Office of lisesemest and kudget Washington, D. C. 20502 Dear Mr. Steelman: Thank you for sending se a copy of MB Sultstin No. 81-17 and related saterial describing the Adniaistration's program for improving debt collection. We have a very strong credit review program at each Tederel Reserve Sask, and we were interested to learn that other agencies will be givtws active attention to their credit management problem*. Very truly yours, (tHA) Jame McAfee Assistant Secretary of the Utard PDRiag/J/Wril bcc: P. D. Ring T. Allison E. Mulrenin Sandy Wolfe (a-13) THE WHITE HOUSE 1 BOARD CF GOVERNORS CIF 1HE E1..F.R4t FESIWC SYSTFr *ell WAS April 23, 1981 1981 APR 27 AM 11: 31 RFCEIVEi OFFICE OF EKE CHAIRMAN MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCI ES SUBJECT: STRENGTHENING FEDERAL CREDIT MANAGEMENT The burden of delinquent debts owed to the Federal Government continues to grow every year and is contributing to our seriou s problem of inflation. We must again establish the principle that debts to the Federal Government must be paid. Recent studies by the Executive Branch Debt Collection Project and the General Accounting Office reveal that more than $25 billion of the $175 billion in debts owed the Federal Government are either delinquent or in default. We must institute better credit management to prevent debt delinquencies and defaults and use more aggressive debt collection procedures to recover the delinquencies that do occur. We must take firm action now to reduce that portion of the $25 billion debt backlog that is collectible. As first steps, I am directing you to designate an official with responsibility and authority for debt collection and submit the name of this official to the Office of Management and Budget Additionally, each department and agency is to by May 15, 1981. complete a review of their agencies debt situation and prepare a detailed plan and schedule for resolving identified problems. This is due by June 15, 1981 to the Office of Management and Budget. To slow the expansion of delinnuent debt, each aaency and department will provide a plan for improved credit management and more efficient debt collection. A progress report on the results of your reviews and the development of credit management plans will be due by September 30, 1981 to the Office of Management and Budget. Hereafter, an annual report on debt collection will be submitted in September. I am instructing the Director of the Office of Management and Budget to issue procedures and guidelines to assist you in carrying out this directive. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Administrative actions are not sufficient to resolve this critical problem. Accordingly, this Administration will support legislation to facilitate better credit management and more effective debt collection. We cannot afford to allow debt to grow and add to the burden of inflation. Immediate action is required now to restore sound credit management to the Federal Government. CITIE1114,V.S ,301.R0 GyTHE WHITE HOUSE WASHINGTON April 20, 1981 t\r+ t3B1 APFt 23 acF_Ivu) 04 OFFICE OF ti4 P MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES SUBJECT: Eliminating Wasteful Spending on Government Periodicals, Pamphlets, and Audiovisual Products The Federal Government is spending too much on public relations, publicity, and advertising. Much of this waste can be traced to unnecessary magazines, pamphlets, and films produced by the government and paid for by taxpayers. We now spend over $100 million a year on the production and duplication of audiovisual products alone. This does not include the related expenses of Federal personnel or the cost to distribute these products. While we must keep the public accurately informed about Federal programs and activities, I want you to weed out superfluous magazines, pamphlets, films, and public service announcements, especially those that are designed primarily to improve the image of a Federal program or agency. I am asking each of you to impose an immediate moratorium on the Production and procurement of new audiovisual products and the printing and distribution of new periodicals and pamphlets. Additionally, I want you to conduct a comprehensive review of all current and planned activities in this area and develop specific plans for controlling costs in the future. A report on these spending control plans and projected savings should be submitted to the Office of Management and Budget by July 15, 1981. I am instructing the Director of the Office of Management and Budget to issue procedures and guidelines for the moratorium and to assist you in developing plans to control spending in the future. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cr\-14s'& EXESTIVE OFFICE OF THE PRESIDOIT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON. D.C. 20503 APR 8 1981 MEMORANDUM TO HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES FROM: Edwin L. Harper, Deputy Director SUBJECT: Implementation of OMB Circular A-76 1 .)111; i I Determining the least cost method of providing essential services (contract or in-house). Streamlining existing government organizations ensuring they are organized and staffed for the most efficient performance. Reducing long-range fiscal obligations through reductions in the Federal workforce when cost comparisons show a contract operation is more cost effective. Enhancing productivity through the development of measurable job standards. ovides that when private performance of commercial or industrial sible and n.o overriding factors require in-house performance, a ison of contract costs versus in-house costs will be made, using the Comparison Handbook, to determine whether the work will continue by in-house personnel or converted to a contract operation. The s several provisions that give appropriate consideration to affected es. Among the more significant ones are that: III https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Existing in-house activities not be converted to contract performance on the basis of economy unless it will result in a savings of at least 10 percent of the estimated Government personnel costs for the period of the comparative analysis; and Federal employees displaced as a result of the conversion to contract performance will be given the right of first refusal for employment openings in the contract operation. In a recent review of agencies' overall implementation of the Circular, I noted that with a few exceptions, it has been in a vacuum principally because it lacked the requisite leadership and support from agency officials which is needed for effective implementation. Avl/s-fre" 2 • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Under this Administration we have been charged, among other things, with the responsibility of ensuring economies and efficiencies within the Government. In fulfillment of these responsibilities, it is essential that you become vigorously invoked and pro\ ide the overall leadership in your agency to fully implement the Circular by the close of fiscal year 1982. To assist you in accomplishing this, an OMB Bulletin is being issued which will provide the appropriate visibility needed to ensure it is effectively implemented. Finally, there appears to be some confusion regarding the relationship between OMB Circular A-76 and other instructions that limit Federal civilian employment. Both the Circular and these instructions are complementary. The instructions preclude the use of contracting with firms and institutions outside the Government solely to circumvent personnel ceilings. Agencies that contract out for goods and services under the structured and deliberate process prescribed by OMB Circular A-76 are doing so because it is cost effective and reduces the growth in Government spending. The Comptroller General, in a recent letter to us, reaffirmed not only the importance of the basic policy set forth in the Circular but also the significant savings in personnel positions which could occur if it were fully implemented in all agencies. In light of the trust and responsibilities placed in us by the American people, it is essential that we join together in forming a partnership to ensure OMB Circular A-76 is implemented in an effective and timely manner. Please be assured that my staff and I will work closely with you in this endeavor. Edwin L. Harper Deputy Director https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis April 10, 1981 The Honorable David A. Stockman Director Office of Management and Budget Executive Office of the President Washington, D. C. 20503 Dear Dave: I have your letter about reducing staff, and I can tell you we have some weeks ago put into motion a program to reduce employment here at the Board, cutting below our only recently approved budget. We have not yet determined just how much to cut, pending review of plans down the line. In approaching this, some background is relevant. Several years ago, the entire Federal Reserve instituted a program to achieve staff reduction and greater efficiency. Very substantial progress has been made. Employment was reduced by about 14% from 1975 to 1979 in the face of about a 40% increase in measurable activity. Productivity has risen 9% a year since 1975, an achievement in which we take great satisfaction. The program continues, but there are obviously limits to the speed with which efficiency can be increased, particularly after five years of large productivity growth. Recent legislation, particularly the International Banking Act and the Monetary Control Act, has had the effect of sharply expanding the Federal Reserve's statistical, supervisory, and regulating contacts-.. Forexample,the Federal Reserve's reserve requirements will ultimately apply to nearly 40,000 institutions, as compared to 5,400 member banks in the past. Moreover, the Federal Reserve is now required by law to prov.ide financial services to all depository institutions, not Just to its member banks. The Konorahle David A. Sto man - page 2. As a conseouence, our erplovment decline in the System as a whole is expected to stop, or reverse slightly, this year. These increased responsibilities principally affect the Federal neserve Banks which account for the great bulk of our enr,loyment. Pere at the Board of Governors in Washington, where our employment pattern more clearly resembles other bank supervisory agencies, we do, as indicated above, expect to rake significant staffing reductions this year, after holding essentially steady for some time. I should also point out the Monetary Control Act stipulated that the Federal Reserve Banks begin this year to charge explicit prices for services to financial institutions. This will both generate revenues and help assure the efficiency of our operations, since in some cases we will he competing vith private institutions. Pricing ray result in a material shift in the provision of financial services from the Federal Reserve to the private sector. For example, we know that local clearing of checks by clearing house associations will probably reduce our check clearing operations significantly. As such developments occur over the next year or two, erployment at the Federal neserve Banks may well be reduced substantially further. We have also put in train a re-examination of the services provided by the Federal Reserve nanks to see if there are areas where significant changes are possible, apart from the effects of pricing. I hope we will find ways to effect significant cost savings by discontinuing services whose benefits to the public do not exceed the costs of providing them. The point is, we have been at this some time, with very favorable results, and have taken the occasion of your program to utep up an already intensive effort. You )'now I consider what you are doing to be of critical importance for getting our inflation problem turned around, and I intend to make sure that we AO our part. rAncerely, FFS:PAV:ccm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis t12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 MAR 27 *1981 Honorable Paul A. Volcker Chairman, Board of Governors Federal Reserve System Washington, D. C. 20551 Dear Mr. Chairman: Now that the 1932 Budget reflecting President Reagan's economic recovery program has been transmitted to the Congress, I wish to advise you that executive branch departments and agencies subject to employment ceilings have been directed to reduce Federal civilian employment. I would appreciate the support of the Board of Governors in this effort. The President is committed to substantial reductions in Federal employment through 1986, including employment in a number of financial regulatory agencies. As there is a great deal of similarity in the responsibilities of such agencies, there may he a perceived inequity if staffing is reduced in some of them but not in others. Moreover, there is an expectation by the general public that employment in all Government agencies will be similarly treated. I recognize and respect the essential nature of your activities and the independence of the Federal Reserve System. The support of the Board in achieving staff reductions comparable to those in other bank regulatory agencies would he helpful in showing the commitment of the total Federal establishment to constraining the size of the Federal Government and to maintaining equity. The President has requested that Federal agencies generally reduce employment by 5% in 1981 and 8% in 1982 below the levels provided in the Carter budget. In 1983 and 1984, additional annual reductions of 2% have been requested. Exceptions to this policy for certain activities, such as credit union examination functions, have been made. Many thanks to you and your staff for your efforts and cooperation in supporting the President's efforts to curtail the growth in the Federal Government. Si ncerely, DAVID A. STOCKMAN David A. Stockman Di rector https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I BL)A ptt5 zE THE WHITE HOUSE WA SH I NG TO N i SER'd 1981 tifIR 27 PM 1: 57 March 26, 1981 RELE1`,.E3 OFFICE OF THE CHAIRM4' MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES SUBJECT: Government-Wide Anti-Fraud and Waste Efforts The reduction of fraud and waste in the operation of all Federal programs is a major commitment and priority of my Administration. Today, I am establishing, by Executive Order, the President's Council on Integrity and Efficiency to focus and improve our efforts to deal with the problem. The Deputy Director of the Office of Management and Budget will chair this Council which will include all or the statutory Inspectors General and other key officials. The commitment to reduce fraud and waste cannot be limited to those departments and agencies where statutory ICs have been established. I have asked the Chairman of the Council to ensure that other departments and agencies are actively involved in this most important undertaking. The Executive Order directs the Chairman to convene all of the agencies not on the Council at least four times a year to share information on Council policy initiatives. The establishment of this Council is an integral part of a broader plan to attack fraud, waste and inefficiency in Federal programs. This plan will involve a combination of key officials and organizations, coordinating mechanisms, and priority projects operating under active OMB leadership on my behalf. I expect each of you to provide the necessary support and c:ooDeration to assure that our objective is qccompliqhpri, One specific action I am asking you to take is to designate a top level individual who will have the responsibility for following up on the recommendations of your official who is responsible for coordinating efforts to eliminate fraud and waste and the recommendations of the General Accounting Office. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis t - o) April 10, 1991 The Honorable George Bush The Vice President The White House Washington, D. C. 20500 Dear Mr. Vice President: I've read carefully your letter asking that the Federal Reserve Board comply with the spirit of the President's program for reducing regulatory burdens. I consider efforts to encourage competition and reduce the cost of regulation a highly essential part of the new economic program and have said so frequently in testimony before Congress and in my other public statements. / am particularly heartened that you are taking such a strong personal interest in the issue. Nero at the Federal Reserve we have been concerned for some time about the cost of regulation, particularly to small institutions for whom the burden can be especially harsh. More than two years ago, we began our own effort to thoroughly review all of our regulations to see which ones could be elininated and if not, at least simplified. A Regulatory Improvement Protect involving the full resources of the Federal Reserve System is engaging in a zero-base review of all existing Federal Reserve regulations under criteria that have now been embodied in the Regulation Simplification Act. Reports have been prepared by the Federal Reserve Banks on each of the Board's regulations. Thus far the Board has completed reviewing about one-half of our regulations. In some areas, such as the regulation governing Truthin-Lending which is by far the most burdensome to lenders, we have accomplished very substantial reductions in burden. Al in so many cases, this took legislation. The Board has also consistently testified in support of legislation to reduce regulation of financial institutions where possible. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Honorable George Bush Page 2 We do not anticipate that we will be initiating any significant volume of new regulation, as this is contrary to our general approach. In fact, in the last fiscal year we have not issued any new regulations except those required by legislation. We do make changes in existing regulations from time to time, and in the monetary policy and bank supervision areas in particular it is important that we retain the flexibility to do so. However, we do examine any propoeed change very carefully to assure that it will not add unnecessarily to regulatory burdens specifically. All new regulations, interpretations, and other regulatory materials prepared for the Board's consideration now go through a separate review process by a professional staff established solely to focus on the objectives of the Regulation Simplification Act. This review process is fully consistent with and very similar to that suggested in Section 2 of the Executive Order. We also believe that these procedures, directed toward the same objectives and goals, are fully in the spirit of Section 3. We will also continue to participate in the regulatory calendar. Once again, let me wish you continued success in your efforts to reduce the cost of regulation. Sincerely, RFS/PAV:slw 41110,- th)Aita LI c),-FicE 114'4Dri!VMS 1981 MAR 26 II: 00 OF THE VICE PRESIDENT WASHINGTON PECEIVPil OFFIni: Or Tiii CiieilRN4Ak‘ March 25, 1981 to. Honorable Paul A. Volcker Chairman, Board of Governors of Federal Reserve System 20th & Constitution Avenue, N.W. Washington, D.C. 20551 Dear Chairman Volcker: President Reagan is deeply concerned about the burden of Federal regulations and paperwork, and strongly believes we need to reduce the intrusion of the Federal government into our daily lives. He has established a Task Force on Regulatory Relief, which I chair, and he has issued Executive Order 12291 to establish procedures for careful review of new and existing regulations to assure their compliance with his goals of reI ucing regulatory burdens. In this Executive Order, President Reagan ordered cabinet and agencies to choose, among feasible alternative approaches to any given •regulatory objective, the alternative • involving the least net cost to society. To help focus these efforts, he ordered that these agencies prepare a regulatory impact analysis of major regulatory actions. I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis We appreciate that your organization's internal procedures may make it difficult for you to comply with every provision of Executive Order 12291. For upcoming major regulations, however, I am requesting that you voluntarily adhere to Sections 2 and 3 of the Order. To the extent you can comply with the spirit of the Order, this will help demonstrate to the American people the wngness of all components of the Federal government to respond to their concerns about unnecessary intrusion of government into their daily lives. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OFFICE OF THE VICE PRESIDENT WAS March 25, 1981 MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES SUBJECT: Consolidation of Regulatory Oversight President Reagan has made regulatory relief one of the top priorities of his economic policy. He has asked me, as Chairman of the Presidential Task Force on Regulatory Relief, to take clear, constructive, and decisive action to restrain Federal regulation and to improve the regulatory process. Through Executive Order 12291, issued February 17, 1981, President Reagan has directed the Director of the Office of Management and Budget, subject to the direction of the Task Force, to coordinate Executive branch regulatory policies. This approach renders unnecessary the Regulatory Council, established by President Carter in 1978 as part of his efforts to gain control over the regulatory agencies. To avoid duplication of Task Force efforts and to ensure consistent direction to the agencies, the President has directed me to disband the Council effective immediately. One major activity of the Council has been to publish, at least every six months, a unified "Regulatory Calendar" describing the goals and anticipated effects of major regulations under development. This is a useful effort which will be continued under the auspices of the Office of Management and Budget. I request that you continue to participate in this project and to provide the information which will be requested. 4 77-2„_ -----Bush Geo .ge 2 By the enclosed communication, I have today carried out the President's wish to disband the U.S. Regulatory Council. You should note, however, that the staff will continue to prepare for publication the extraordinarily useful Regulatory Calendar. We solicit and urge your continued, and valued, participation in the Regulatory Calendar project. President Reagan joins me in asking for your cooperation. Working together, we will be able to coordinate and reduce the cumulative burden of needless and overly rigid government regulation. WWW rlo Sincerely, tmenm. Geor e Bush Enclosure k L ‘i te ft L". P'14. ik https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • )7 • . ';.... • --r • F • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CD OFFICE OF THE VICE PRESIDENT .on C. rn CD WAS March 25, 1981 rrt - CR) rn < r71 cv 7 r g7T1 ti/ f7rj ri CI') r"- rri :0 -< ▪ ( 42 rri MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES SUBJECT: —7 Consolidation of Regulatory Oversight President Reagan has made regulatory relief one of the top priorities of his economic policy. He has asked me, as Chairman of the Presidential Task Force on Regulatory Relief, to take clear, constructive, and decisive action to restrain Federal regulation and to improve the regulatory process. Through Executive Order 12291, issued February 17, 1981, President Reagan has directed the Director of the Office of Management and Budget, subject to the direction of the Task Force, to coordinate Executive branch regulatory policies. This approach renders unnecessary the Regulatory Council, established by President Carter in 1978 as part of his efforts to gain control over the regulatory agencies. To avoid duplication of Task Force efforts and to ensure consistent direction to the agencies, the President has directed me to disband the Council effective immediately. One major activity of the Council has been to publish, at least every six months, a unified "Regulatory Calendar" describing the goals and anticipated effects of major regulations under development. This is a useful effort which will be continued under the auspices of the Office of Management and Budget. I request that you continue to participate in this project and to provide the information which will be requested. 7 1- Geo ge Bush ;7"4 S Feb. 17 Administration of Ronald Reagan, 1981 in Proclamation No. 4813 is hereby rescinded. Su% 2. Proclamation No. 4813 is revoked. SEC. 3. The Secretary of Energy shall take such action as may be necessary to ensure the implementation of this Proclamation. IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of ,February, in the year of our Lord nineteen hundred and eighty-one, and of the Independence of the United States of America the two hundred and fifth. RONALD REAGAN [Filed with the Office of the Federal Register, 3:17 p.m., February 17, 1981] Federal Exports and Excessive Regulation • Executive Order 12290. February 17, 1981 By the authority vested in me as President by the Constitution of the United States of America, and in order to ensure that the Export Administration Act of 1979 is implemented with the minimum regulatory burden, Executive Order No. 12264 of January 15, 1981, entitled "On Federal Policy Regarding the Export of Banned or Significantly Restricted Substances," is hereby revoked. RONALD REAGAN The White House, February 17, 1981. [Filed with the Office of the Federal Register, 3:18 p.m., February 17, 1981] Federal Regulation Executive Order 12291. February 17, 1981 odor By the authority vested in me as President by the Constitution and laws of the 124 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis United States of America, and in order to reduce the burdens of existing and future regulations, increase agency accountability for regulatory actions, provide for presidential oversight of the regulatory process, minimize duplication and conflict of regulations, and insure vell-reasoned regulations, it is hereby ordered as follows: SECTION 1. Definitions. For' the purposes of this Order: (a) "Regulation" or "rule" means an agency statement of general applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the procedure or practice requirements of an agency, but does not include: (1) Administrative actions governed by the provisions of Sections 556 and 557 of Title 5 of the United States Code; (2) Regulations issued with respect to a military or foreign affairs function of the United States; or (3) Regulations related to agency organization, management, or - personnel. (b) "Major rule" means any regulation that is likely to result in: (1) An annual effect on the economy of $100 million or more; (2) A major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or (3) Significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic or export markets. (c) "Director" means the Director of the Office of Management and Budget. (d) "Agency" means any authority of the United States that is an "agency" under 14 U.S.C. 3502(1), excluding those agencies specified in 44 U.S.C. 3502(10). (c) "Task Force" means the Presidential Task Force on Regulatory Relief. • Administration of Ronald Reagan, 1981 Feb. 17 SEC. 2. General Requirements. In promulgating new regulations, reviewing existing regulations, and developing legislative proposals concerning regulation, all agencies, to the extent permitted lw law, shall adhere to the following requirements: (a) Administrative decisions shall be based on adequate information concerning the need for and consequences of proposed government action ; (b) Regulatory action shall not be undertaken unless the potential benefits to society from the regulation outweigh the potential costs to society; (c) Regulatory objectives shall be chosen to maximize the net benefits to society; (d) Among alternative approaches to any given regulatory objective, the alternative involving the least net cost to society shall be chosen; and (e) Agencies shall set regulatory priorities with the aim of maximizing the aggregate net benefits to society, taking into account the condition of the particular industries affected by regulations, the condition of the national economy, and other regulatory actions contemplated for The future. such determinations, to order a rule to be treated as a major rule, and to require any set of related rules to be considered together as a major rule. (c) Except as provided in Section 8 of this Order, agencies shall prepare Regulatory Impact Analyses of major rules and transmit them, along with all notices of proposed rulemaking and all final rules, to the Director as follows: (1) If no notice of proposed rulemaking is to be published for a proposed major rule that is not an emergency rule, the agency shall prepare only a final Regulatory Impact Analysis, which shall be transmitted, along with the proposed rule, to the Director at least 60 days prior to the publication of the major rule as a final rule; (2) With respect to all other major rules, the agency shall prepare a preliminary Regulatory Impact Analysis, which shall be transmitted, along with a notice of proposed rulemaking, to the Director at least 60 days prior to the publication of a notice of proposed rulemaking, and a final Regulatory Impact Analysis, which shall be transmitted along with the final rule at least 30 days prior to the publication of the major rule as a final SEC. 3. Regulatory Impact Analysis and rule; • Review. (3) For all rules other than major rules, (a) In order to implement Section 2 of agencies shall submit to the Director, at this Order, each agency shall, in connec- least 10 days prior to publication, every tion with every major rule, prepare, and notice of proposed rulemaking and final to the 'extent permitted by taw consider, rule. a Regulatory Impact Analysis. Such (d) To permit each proposed major Analyses may be combined with any rule to be analyzed in light of the requireRegulatory Flexibility Analyses performed ments stated in Section 2 of this Order, under 5 U.S.C. 603 and 601. each preliminary and final Regulatory Im(b) Each agency shall initially deter- pact Analysis shall contain the following mine whether a rule it intends to )ro )ose information: or to issue is a major rule, prow e that, (1) A description of the potential benthe Director, subject to the direction of efits of the rule, including any beneficial the Task Force, shall have authority, in effects that cannot be quantified in moneaccordance with Sections 1(b) and 2 of tary terms, and the identification of those this Order, to prescribe criteria for making likely to receive the benefits; https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 125 5 Feb. 17 Administration of Ronald Reagan, 1981 (2) A description of the potential costs of the rule, including any adverse effects that cannot be quantified in monetary terms, and the identification of those likely to bear the costs; (3) A determination of the potential net benefits of the rule, including an evaluation of effects that cannot be quantified in monetary terms; (4) A description of alternative approaches that could substantially achieve the sam& regulatory goal at lower cost, together with an analysis of this potential benefit and costs and a brief explanation of the legal reasons why such alternatives, if proposed, could not be adopted; and (5) Unless covered by the description required under paragraph (4) of this subsection, an explanation of any legal reasons why the rule cannot be based on the requirements set forth in Section 2 of this Order. (e)(1) The Director, subject to the direction of the Task Force, which shall resolve any issues raised under this Order or ensure that they are presented to the President, is authorized to review any preliminary or final Regulatory Impact Analysis, notice of proposed rulemaking, or final rule based on the requirements of this Order. (2) The Director shall be deemed to have concluded review unless the Director advises an agency to the contrary under subsection (f) of this Section: (A) Within 60 days of a submission under subsection (c)(1) or a submission of a preliminary Regulatory Impact Analysis or notice of proposed rulemaking under subsection (c)(2); (B) Within 30 days of the submission of a final Regulatory Impact Analysis and a final rule under subsection (c)(2); and (C) Within 10 days of the submission of a notice of proposed rulemaking or final rule under subsection (c)(3). 126 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • (f)(1) Upon the request of the Director, an agency shall consult with the Director concerning the review of a preliminary Regulatory Impact Analysis or notice of proposed rulemaking under this Order, and shall, subject to Section 8(a) (2) of this Order, refrain from publishing its preliminary Regulatory Impact Analysis or notice of proposed rulemaking until such review is concluded. (2) Upon receiving notice that the Director intends to submit views with respect to any final Regulatory Impact Analysis or final rule, the agency shall, subject to Section 8(a)(2) of this Order, refrain from publishing its final Regulatory Impact Analysis or final rule until the agency has responded to the Director's views, and incorporated those views and the agency's response in the rulemaking file. (3) Nothing in this subsection shall be construed as displacing the agencies' responsibilities delegated by law. (g) For every rule for which an agency publishes a notice of proposed rulemaking, the agency shall include in its notice: (1) A brief statement setting forth the agency's initial determination whether the proposed rule is a major rule, together with the reasons underlying that determination; and (2) For each proposed major rule, a brief summary of the agency's preliminary Regulatory Impact Analysis. (h) Agencies shall make their preliminary and final 1Zegulatorv Impact Analyses available to the public. (i) Agencies shall initiate reviews of currently effective rules in accordance with the purposes of this Order, and perform Regulators' Impact Analyses of currently effective major rules. The Director, subject to the direction of the Task Force, may designate currently effective rules for 00•4E. 1111MION IF •a. NM. • Administration of Ronald Reagan, 1981 review in accordance with this Order, and establish schedules for reviews and Analyses under this Order. SEC. 4. Regulatory Review. Before approving any final major rule, each agency shall: (a) Make a determination that the regulation is clearly within the authority delegated by law and consistent with congressional intent, and include in the FEDERAL REGISTER at the time of promulgation a memorandum of law supporting that determination. (b) Make a determination that the factual conclusions upon which the rule is based have substantial support in the agency record, viewed as a whole, with full attention to public comments in general and the comments of persons directly affected by the rule in particular. SEC. 5. Regulatory Agendas. (a) Each agency shall publish, in October and April of each year, an agenda of proposed regulations that the agency has issued or expects to issue, and currently effective rules that are under agency review pursuant to this Order. These agendas may be incorporated with the agendas -published under 5 U.S.C. 602,'and must contain at the minimum: (1) A summary of the nature of each major rule being considered, the objectives and legal basis for the issuance of the rule, and an approximate schedule for completing action on any major rule for which the agency has issued a notice of proposed rulemaking; (2) The name and telephone number of a knowledgeable agency official for each item on the agenda; and (3) A list of existing regulations to be reviewed under the terms of this Order, and a brief discussion of each such regulation. (b) The Director, subject to the direc- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Feb. 17 tion of the Task Force, may, to the extent permitted by law : (1) Require agencies to provide additional information in an agenda; and (2) Require publication of the agenda in any form. SEC. 6. The Task Force and Office of Management and Budget. (a) To the extent permitted by law, the Director shall have authority, subject to the direction of the Task Force, to: (1) Designate any proposed or existing rule as a major rule in accordance with Section 1(b) of this Order; (2) Prepare and promulgate uniform standards for the identification of major rules and the development of Regulatory Impact Analyses; (3) Require an agency to obtain and evaluate, in connection with a regulation, any additional relevant data from any appropriate source; (4) Waive the requirements of Sections 3, 4, or 7 of this Order with respect to any proposed or existing major rule; (5) Identify duplicative, overlapping and conflicting rules, existing or proposed, and existing or proposed rules that are inconsistent with the policies underlying statutes governing agencies other than the issuing agency or with the purposes of this Order, and, in each such case, require appropriate interagency consultation to minimize or eliminate such duplication, overlap, or conflict; (6) Develop procedures for estimating the annual benefits and costs of agency regulations, on both an aggregate and economic or industrial sector. basis, for purposes of compiling a regulatory budget; (7) In consultation with interested agencies, prepare for consideration by the President recommendations for changes in the agencies' statutes; and (8) Monitor agency compliance with the requirements of this Order and advise 127 • Feb. 17 Administration ol Ri,nald Reagan, 1981 the President with respect to such compliance. (b) The Director, subject to the direction of the Task Force, is authorized to establish procedures for the performance of all functions vested in the Director by this Order. The Director shall take appropriate steps to coordinate the implementation of the analysis, transmittal, review, and clearance provisions of this Order with the authorities and requirements provided for or iMposed upon the Director and agencies under the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., and the Paperwork Reduction Plan Act of 1980, 44 U.S.C. 3501 et seq. SEC. 7. Pending Regulations. (a) To the extent necessary to permit reconsideration in accordance with this Order, agencies shall, except as provided in Section 8 of this Order, suspend or postpone the effective dates of all major rules that they have promulgated in final form as of the date of this Order, but that have not yet become effective, excluding: (1) Major rules that cannot legally be postponed or suspended; (2) Major rules that, for good cause, ought to become effective as final rules without reconsideration. Agencies shall prepare, in accordance with Section 3 of this Order, a final Regulatory Impact Analysis for each major rule that they suspend or postpone. (b) Agencies shall report to the Director no later than 15 days prior to the effective date of any rule that the agency has promulgated in final form as of the date of this Order, and that has not yet become effective, and that N'ill not be reconsidered under subsection (a) of this Section: (1) That the rule is excepted from reconsideration under subsection (a), including a brief statement of the legal or 128 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • other reasons. for that determination ; or (2) That the rule is not a major rule. (c) The Director, subject to the direction of the Task Force, is authorized, to the extent permitted by law, to: (1) Require reconsideration, in accordance with this Order, of any major rule that an agency has issued in final form as of the date of this Order and that has not become effective; and (2) Designate a rule that an agency has issued in final form as of the date of this Order and that has not vet become effective as a major rule in accordance with Section 1 (b,.) of this Order. (d) Agencies may, in accordance with the Administrative Procedure Act and other applicable statutes, permit major rules that they have issued in final form as of the date of this Order, and that have not yet become effective, to take effect as interim rules while they are being reconsidered in accordance with this Order, provided that, agencies shall report to the Director, no later than 15 days before any such rule is proposed to take effect as an interim rule, that the rule should appropriately take effect as an interim rule while the rule is under reconsideration. (e) Except as provided in Section 8 of this Order, agencies shall, to the extent permitted by law, refrain from promulgating as a final rule any proposed major rule that has been published or issued as of the date of this Order until a final Regulatory Impact Analysis. in accordance with Section 3 of this Order, has been prepared for the proposed major rule. (f) Agencies shall report to the Director, no later than 30 days prior to promulgating as a final rule any proposed rule that the agency has published or issued as of the date of this Order and that has not been considered under the terms of this Order: 0 —An • • • Administration of Ronald Reagan, 1981 (1) That the rule cannot legally be considered in accordance with this Order, together with a brief explanation of the legal reasons barring such consideration; or (2) That the rule is not a major rule, in which case the agency shall submit to the Director a copy of the proposed rule. (g) The Director, subject to the direction of the Task Force, is authorized, to the extent permitted by law, to: (1) Require consideration, in accordance with this Order, of any proposed major rule that the agency has published or issued as of the date of this Order; and (2) Designate a proposed rule that an agency has published or issued as of the date of this Order, as a major rule in accordance with Section 1(b) of this Order. (11) The Director shall be deemed to have determined that an agency's report to the Director under subsections (b), (d), or (f) of this Section is consistent with the purposes of this Order, unless the Director advises the agency to the contrary: (1) Within 15 days of its report, in the case of any report under subsections (b) or (d); or • (2) Within 30 days of its report, in the case of any report under subsection (f). (i) This Section does not supersede the President's Memorandum of January 29, 1981, entitled "Postponement of Pending Regulations", which shall remain in effect until March 30, 1981. (j) In complying with this Section, agencies shall comply with all applicable provisions of the Administrative Procedure Act, and with any other procedural requirements made applicable to the agen,-cies by other statutes. SEC. 8. Exemptions. (a) The procedures prescribed by this Order shall not apply to: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Feb. 17 (1) Any regulation that responds to an emergency situation, provided that, any such regulation shall be reported to the Director as soon as is practicable, the agency shall publish in the FEDERAL REGISTER a statement of the reasons why it is impracticable for the agency to follow the procedures of this Order with respect to such a rule, and the agency shall prepare and transmit as soon as is practicable a Regulatory Impact Analysis of any such major rule; and (2) Any regulation for which consideration or reconsideration under the terms of this Order would conflict with deadlines imposed by statute or by judicial order, provided that, any such regulation shall be reported to the Director together with a brief explanation of the conflict, the agency shall publish in the FEDERAL REGISTER a statement of the reasons why it is impracticable for the agency to follow the procedures of this Order with respect to such a rule, and the agency, in consultation with the Director, shall adhere to the requirements of this Order to the extent permitted by statutory or judicial deadlines. (b) The Director, subject to the direction of the Task Force, may,in accordance with the purposes of this Order, exempt any class or category of regulations from any or all requirements of this Order. SEC. 9. Judicial Review. This Order is intended only to improve the internal management of the Federal government, and is not intended to create any right or benefit,substantive or procedural,enforceable at law by a party against the United States, its agencies, its officers or any person. The determinations made by agencies under Section 4 of this Order, and any Regulatory Impact Analyses for any rule, shall be made part of the whole record of agency action in connection Nvith the rule. 129 111.1.....51111MM Feb. 17 Administration of Ronald Reagan, 1981 SEC. 10. Revocations. Executive Orders No. 12044, as amended, and No. 12174 are revoked. RONALD REAGAN The White House, February 17, 1981. [Filed with the Office of the Federal Register, 3:19 p.m., February 17, 1981] Program for Economic Recovery Address Before a Joint Session of the Congress. February 18, 1981 Mr.Speaker, Mr. President, distinguished Menzbers of Congress, honored guests,and fellow citizens: Only a month ago I was your guest in this historic building, and I pledged to you my cooperation in doing what is right for this nation that we all love so much. I'm here tonight to reaffirm that pledge and to ask that we share in restoring the promise that is offered to every citizen by this, the last, best hope of man on Earth. All of us are aware of the punishing inflation which has for the first time in 60 years held to double-digit figures for 2 -years in a row. Interest rates have reached absurd levels of more than 20 percent and over 15 percent for those who would borrow to buy a home. All across this land one can see newly built homes standing vacant, unsold because of mortgage interest rates. Almost 8 million Americans are out of work. These are people who want to be productive. But as the months go by, despair dominates their lives. The threats of layoff and unemployment hang over other millions, and all who work are frustrated by their inability to keep up with inflation. One worker in a Midwest city put it to me this way: He said,"I'm bringing home 130 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • more dollars than I ever believed I could possibly earn, hut I seem to be getting worse off." And he is. Not only have hourly earnings of the American worker, after adjusting for inflation, declined 5 percent over the past 5 years, but in these 5 years, Federal personal taxes for the average family have increased 67 percent. We can no longer procrastinate and hope that things will get better. They will not. Unless we act forcefully—and now—the economy will get worse.. Can we, who man the ship of state, deny it is somewhat out of control? Our national dabt is approaching $1 trillion. A few weeks ago I called such a figure, a trillion dollars, incomprehensible, and I've been trying ever since to think of a way to illustrate how big a trillion really is. And the best I could come up with is that if you had a stack of thousand-dollar bills in your IN.ind only 4 inches high, you'd be a millionaire. A trillion dollars woul.: be a stack of thousand-dollar bills 67 miles high. The interest on the public debt this year we know will be over $90 billion, and unless we change the proposed spending for the fiscal year beginning October 1st, we'll add another almost $80 billion to the debt. Adding to our troubles is a mass of regulations imposed on the shopkeeper, the fanner, the craftsman, professionals, and major industry that is estimated to add $100 billion to the price of the things we buy, and it reduces our ability to produce. The rate of increase in American productivity, once one of the highest in the world, is among the lowest of all major industrial nations. Indeed, it has actually declined in the last 3 years. Now, I've painted a pretty grim picture, but I think I've painted it accurately. It is within our power to change his picture, and we can act with hope. There's nothing wrong with our internal porwrin rwl". Imo • p. EXECUTIVE OFFICE OF THE PRESIDENT ,!• , r"!) . • • v, ;,•• • 1• ( OFFICE OF MANAGEMENT AND BUDGET • „' 44A •/ WASHINGTON. D.C. 20503 • GENERAL COUNSEL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis '1 March 13, 1981 ./ Honorable Paul C. Volcker Chairman Board of Governors of the Federal Reserve System Washington, D. C. 20551 Dear Mr. Chairman: In accordance with the provisions of Executiv e Order No. 11030, as amended, enclosed is a proposed Executive order entitled "Statistical Policy Functions." It was prepared in this office in order to implemen t Section 3(a) of the Paperwork Reduction Act of 1980, 94 Stat. 2825 , and to transfer certain related statistical policy function s from the Department of Commerce to the Office of Manageme nt and Budget. On behalf of the Director of the Office of Management and Budget, I would appreciate receiving any comments you may have concerning this proposal. If you have any comments or objections they should be received no later than Monday, March 23, 1981. Comments or inquiries may be submitted to Mr. Peter M. Shane of this office (395-5600). Sincerely, )?7. -77& c ItL, William M. Nichols General Counsel Enclosure / https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EXECUTIVE ORDER STATISTICAL POLICY FUNCTIONS By virtue of the authority vested in me by Reor ganization Plan No. 2 of 1970 (5 U.S.C. App. II), Section 202 of the Budget and Accounting Procedures Act of 1950 (31 U.S.C. 581c), Section 3(a) of the Paperwork Reduction Act of 1980 (Public Law 96-511, 94 Stat. 2825), and Section 301 of Title 3 of the United States Code, and in order to delegate certain statistical policy functions to the Director of the Office of Management and Budget, and to require rede legation of certain functions to the Administrator for the Offi ce of Information and Regulatory Affairs, it is hereby ordered as follows: Section 1. Section 1(c) of Executive Order No. 11541 of July 1, 1970, as amended, is deleted. Sec. 2. Executive Order No. 10253 of July 11, 1951, as amended, is further amended as follows: (a) "Secretary of Commerce" is deleted in Section 1 and "Director of the Office of Management and Budget" is substituted. (b) "Secretary" is deleted wherever it appears in Sections 1, 2, 4, 5, and 6 and "Director" is substituted therefor. (c) "Department of Commerce" is deleted in Section 6 and "Office of Management and Budget" is substituted. (d) Sections 7 and 8 are deleted. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • 2 Sec. 3. Executive Order No. 10033, as amended, is further amended as follows: (a) "Secretary of Commerce" is deleted in Section 1 and "Director of the Office of Management and Budget" is substituted. (b) "Secretary" is deleted wherever it appears in Sections 1, 2(a), 2(b), 2(c), 3, 4, and 5 and "Directo r" is substituted therefor. (c) Section 7 is deleted. Sec. 4. Executive Order No. 12013 is amended as follows: (a) Section 7 is deleted. (b) Paragraph 1 of subsection (a) of Section 8 is amended to read, "The Secretary of Commerce.". (c) Paragraph 14 of subsection (a) of Section 8 is amended to read, "The Director of the Office of Manageme nt and Budget, who shall be Chairman.". (d) "Secretary of Commerce" is deleted in subsection (d) of Section 8 and "Director of the Office of Manageme nt and Budget" is substituted. Sec. 5. The Director shall delegate to the Adminis- trator for the Office of Information and Regu latory Affairs all of the Director's functions, authority, and responsibility under Section 103 of the Budget and Accounti ng Procedures Act of 1950 (31 U.S.C. 18b), including all such functions, authority, and responsibility delegated to the Director by the President, except that such delegation shall not relieve the Director of responsibility for the administration of such functions, authority, and responsibility. Sec. 6. The records, property, personnel, and unexpended balances of appropriations, available or to be made available, which relate to the functions transferred or reassign ed from https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • 3 the Secretary of Commerce to the Director of the Office of Management and Budget by the delegations made in thiLi Order, are hereby transferred to the Director of the Office of Management and Budget. Sec. 7. The Director of the Office of Management and Budget shall make such determinations, issue such orders, and take all steps necessary or appropriate to ensure or effectuate the transfers or reassignments provided by this Order, including the transfer of funds, records, property, and personnel. Sec. 8. Any rules, regulations, orders, directives, circulars, or other actions taken pursuant to the functions transferred or reassigned from the Secretary of Commerce to the Director of the Office of Management and Budget by the delegations made in this Order, shall remain in effect until amended, modified, or revoked pursuant to the delegations made in this Order. Sec. 9. This Order shall be effective April THE WHITE HOUSE , 1981 , 1981. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 11,1-/Fg M-81-8 March 9, 1981 MEMORANDUM TO HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Proposed Executive Orders and Proclamations Executive Order No. 11030, as amended, requires all proposed Executive orders and proclamations to be submitted to the Office of Management and Budget for review and interagency clearance. It provides that after a proposal has been approved it is forwarded for review by the Attorney General as to form and legality. Only after this policy and legal review process has been completed are proposed orders and substantive proclamations submitted to the President. Executive Order No. 11030 continues in effect. Current procedures for clearance will continue. All proposals should be submitted to the Office of Management and Budget's General Counsel, well in advance of any anticipated issue date. Proposals submitted prior to January 20, 1981, and which have not, subsequent to that date, been circulated for agency comment will not be processed further. Any agency wishing to renew such a proposal shall resubmit it to the General Counsel as if it were a proposal of the new Administration. It is important that every proposal be accompanied by a statement of the legal or policy requirement for the order or proclamation, a recitation of the President's authority to issue the document, a summary of purposes, and an analysis of its provisions. //) ii David A. Stockman Director https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • THE WHITE HOUSE •,•• • • I n: 7 WASHINGTON 4 7 : 1° ea , . OP dr February 27, 1981 MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES The 100th Anniversary of the American National Red Cross is being celebrated this year and I have just affixed my signature to the document proclaiming the month of March as Red Cross Month. The historic record of mercy and service of the Red Cross is known to us all. Its efforts this past year have alleviated suffering in this country and abroad, trained hundreds of thousands to deal effectively in matters of health and safety, and, through its blood services, saved the lives of untold numbers. As President of the United States and Honorary Chairman of the American National Red Cross, I extend my personal support for the humanitarian efforts of this organization. I know that you will join me in this support and encourage every Federal employee and member of our armed forces to assist the Red Cross by supporting their local chapters. It is essential to the Nation that the Red Cross continue to receive wide public voluntary support, both in funds and volunteer effort, to insure the organization's second century of service. Let us all respond generously and help maintain the spirit of charity that has always been one of the hallmarks of the American character. THE WHI E WASHINGT0'1 I February 20, 1981 MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES FROM: CRAIG L. FULLER / DEPUTY ASSISTANT TOTHE PRESIDENT AND DIRECTOR, OFFICE OF CABINET ADMINISTRATION SUBJECT: Release of Information Concerning Budget and Program Changes We have had many questions as to the level of detail that may be released by departments and agencies concerning the major budget and program changes that have been agreed upon by the Cabinet and incorporated in the President's economic program. This memorandum is to provide guidance on that matter. First, you should rely primarily upon the detailed information provided in the Budget Reform Plan which the President has transmitted to the Congress. Second, you should avoid release of information relating to budget and program changes not incorporated in the February 18 message. Many changes are still under consideration and will be presented in the comprehensive FY 1982 budget revisions that will be transmitted to Congress on March 10 or shortly thereafter. As is normal practice, any supporting materials relating to the President's proposals for budget and program changes intended for release to the public or Congress should be submitted to OMB for review and clearance. This review is essential to ensure consistency with the budget reform plan and the revised budget. Your cooperation is appreciated. If you have any questions, please call me or your contact at OMB. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • ••••••• EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET r ?? WASHINGTON. D.C. 20503 OFFICE OF FEDERAL PROCUREMENT POLICY FEB 0 5 1981 0 M-81-7 MEMORANDUM TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Rescission of Policy Letter 78-6, Wage and Price Standards for Federal Contractors Policy Letter 78-6, dated December 27, 1978, implemented the President's antiinflation program by requiring that Federal contractors comply with the voluntary wage and price standards. The Policy Letter required contractors and first-tier subcontractors to certify their compliance with the wage and price standards, in connection with any prime contract or first-tier subcontract expected to exceed $5 million. It also privided that any companies listed by the Council on Wage and Price Stability (CWPS) as noncompliant would not be eligible for prime contract or first-tier subcontract awards over $5 million. This Policy Letter was issued under the authority of Executive Order 12092, dated November 1, 1978. Executive Order 12288, dated January 29, 1981, revoked Executive Order 12092. Accordingly, Policy Letter 78-6 is hereby rescinded. Outstanding solicitations which include the requirement to certify compliance with the wage and price, standards may be amended to delete this requirement. In the case of uncompleted contracts which contain the certification clause, the practical effect of the revocation of Executive Order 12092 and Policy Letter 78-6 is to make the clause meaningless. The same is true with respect to the lists of noncompliant companies which, under Policy Letter 78-6, were ineligible for contract awards. The Secretary of Defense and the Administrator of General Services are requested to revise the Defense Acquisition Regulation (DAR) and the Federal Procurement Regulations (FPR)respectively, to reflect the above action. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Karen Hastie Williams Administrator • THE WHITE HOUSE WASH I N GTO N Febraary 7, 1981 NIENIORANDUM FOR: HEADS OF NON—CABINET AGENCIES SUBJECT: REVISIONS OF THE 1982 BUDGET The comprehensive economic program that I will present te the Congress on February 18, 1981. will describe speading reductions, tax reductions and actions to remove unnecessary regulatory burdens. For the past several weeks, members of the Cabinet and I have been identifying major policy and program changes that must be made to begin bringing spending under control. These major changes will be outlined in my February 18th address. In addition to these major items, reductions will have to he made in virtually every agency for fiscal year 1981, 1982 and the future. This memorandum is to a your cooperation in this second phase of our review and to Jutline the process and schedule that we must f, '11v in order to submit a fully revised 1982 budget — including the of the major changes! announce on 1 orauary 18th and all other revisions of the budget submitted by President Carter on .7anuary 15fh — te the (. •r.gress by March 10, 1981. At ;-n. direction, the full rev ies, of the remainder of the Carter budget is already underway in the Office of \lana2ernent and Budget. The remaining steps in the revision p:ocess will of necessity- be much more co;npressed titan weuld normaliy be possible and the procedure will be very detnandirg for all of us. I'vlor2 • During the next 9 days,°NIB will complete its review, consult with my senior advisers and me as appropriate, and at ray direction, will athise each agency of additional re:iuctions that are needed from the Carter budve.t to achieve our spending and employment reduction goals. • If you bel;eve there are better ways of achieving the reductions. 1 ask that you convey your views to the Director of OMB in wr;ting thin 4S hours after receiving the revised budget and employment limits. • I wiil look to you and the Office of Management and Budget to resolve any differences promptly and, in those fey cases whore they cannot tie resolved, to bring those differences to me jointly for final decision. Of necessity, I need to receive such items within 4 days of the time that you receive the initial notification from OMB. Some agen::;es begin reeeivin ti•c initial notification by February 9th. The entire process must be completed proinptly for all dep:irtTaents and agencies to allow time for your preparation of supporting materials and for compiling and printing the -,Aised hodget. Your coopetation in this effort is appreciated. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON. D.C. 20503 February 2, 1981 M-61-6 TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Legislative Coordination and Clearance This is to call your attention to the Executive branch's legislative coordination and clearance process and to request that incoming policy officers of the new Administration be thoroughly briefed on this subject. The attached paper sets forth the major elements and the essential purposes of the clearance process. Office of Management and Budget Circular No. A-19 presents in detail the requirements and procedures for the coordination and clearance by OMB of Executive agency recommendations on proposed, pending, and enrolled legislation. I want to stress the importance of adherence to the requirements of the clearance process so that it will serve the needs of the President by assuring that agency legislative proposals and recommendations are consistent with his policies and programs. I also want to emphasize the need for timeliness. Agency legislative proposals and reports and testimony on pending legislation should be submitted to OMB as far in advance as feasible of the date on which they need to be cleared in order to allow sufficient time for their review and coordination with other agencies. In that connection, we want to have transmitted to Congress as promptly as possible all proposed legislation necessary to support the President's economic policy and the 1982 Budget as revised by this Administration. As decisions are made on these matters, you should give top priority to submitting draft legislation to OMB for review and clearance. My staff will be in touch with yours on scheduling details. avid A. Stockman Director Attachment • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE LEGISLATIVE CLEARANCE FUNCTION This paper briefly decribes the major elements of the legislative clearance function which the Office of Management and Budget (OMB), working with other elements of the Executive Office of the President and with the agencies, carries out on behalf of the President. The function is designed to serve the needs of the President in carrying out his legislative responsibilities. Background The President's legislative responsibilities are founded in his constitutional duties and powers to: (1) require the opinion in writing of the principal officer in each of the Executive departments, (2) take care that the laws are faithfully executed, (3) give the Congress information on the State of the Union, (4) recommend to the Congress such measures as he judges necessary, (5) approve or disapprove bills passed by the Congress, and (6) convene either or both Houses of Congress. The legislative clearance function originated in the early 1920's in the Administration of President Harding. It grew out of the control over the budget given to the President by the Budget and Accounting Act of 1921. In its initial years, the clearance function was largely confined to bills involving expenditures, but it was later extended by ?resident Roosevelt to all bills. A detailed description of the development of the legislative clearance function is contained in an article by Richard Neustadt, "The Growth of Central Clearance," in the American Political Science Review of September 1954. OMB Circular A-19 sets forth the basic guidelines and procedures for carrying out the function. These proceudres have been substantially the same for more than 40 years. Description of Current Clearance Procedures The clearance function covers agency legislative proposals, agency reports and testimony on pending legislation, and enrolled bills. Legislative Proposals -- All tills that Executive agencies wish to transmit to the Congress aro sent to on3 for clearance. There they are reviewed and a determination is made on what additional data and information are needed and what other agencies have substantial interests and should be asked to comment. • eq. 2 Agencies whose views are asked may favor a draft bill or have no objv,:tion. It is likely, however, that one or more of them will propose substantive or technical amendments, or perhaps a complete substitute. Divergent views may be reconciled by telephone or by letter. If appropriate, a meeting of the interested agencies will be arranged by OMB staff. After review, analysis, resolution of issues, and obtaining appropriate policy guidance, OMB advises the proposing agency that (1) there is "no objection" from the standpoint of the Administration's program to the submission ofthe proposed draft bill to the Congress, (2) the proposed bill is "consistent with the Administration's objectives," or (3) the proposed bill is "in accord with the President's program." This "advice" is conveyed by the submitting agency to the Congress in its transmittal letter. On the other hand, if the agency is advised that its proposed bill conflicts with an important Administration objective, or is not in accord with the President's program, it may not transmit the bill to the Congress. Draft bills in the first category, i.e., "no objection" bills, are normally considered part of the agency's legislative program as contrasted to the President's legislative program which consists of bills in the second and third category. The above are simply illustrative of the range of advice given, and there are many possible variations or qualifications, including suggested amendments to eliminate other agencies' objections. Reports on Pending Legislation -- If agencies are asked by congressional committees to report or testify on pending legislation or wish to volunteer a report, similar clearance procedures are followed. Agencies are given "advice" which they transmit in their reports or include in their testimony. In the case of reports, however, receipt of advice contrary to the views expressed in the proposed report does not require an agency to change its views, but the agency is expected to review its position. Enrolled Bills -- After Congress has completed action on a bill, it is enrolled and sent t3 the President for his approval or disapproval. The Constitution provides that the ?resident shall take action within 10 days after receipt of the bill, not including Sundays. To assist bill, OMB hours its signed by https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the President in deciding his course of action on a requests each interested agency to submit within 48 analysis and recommendation in a letter to OMB, the head of the agency or other Presidential 4 ' 0 3 appointee. OMB prepares a memorandum to the President on the enrolled bill which transmits these views letters and summarizes the issues and various views and recommendations. If an agency recommends disapproval or a signing statement, it is responsible for preparing a draft of an appropriate statement for the President's consideration. Volume of Activity -- During the 95th Congress, 19,387 bills and joint resolutions were introduced in the two Houses. The agencies submitted to OMB for clearance approximately 7,000 proposed reports on bills and 900 draft bills. OMB received congressional committee requests for its views on 3,400 bills. The 95th Congress enacted 803 public and private laws. Relationship to the President's Legislative Program The legislative recommendations of the President in his three regular annual messages -- State of the Union, Budget, and the Economic Report -- together with those in any special messages or other communications to the Congress generally constitute the President's legislative program. These recommendations have had their origin in many sources. One major source is the agencies themselves. Each year, along with their budgets, departments and agencies submit to OMB proposed agency legislative programs for the coming session of Congress. Other major sources include bills introduced in the Congress and proposals of commissions, panels, and task forces established by law or by administrative order to examine and recommend on particular subjects. In conjunction with the legislative clearance function, OMB and the agencies assist the White House staff in the development of the President's program. Each President develops his legislative program, of course, through methods of his own choice; and the form and nature of OMB and agency assistance vary, depending on the President's wishes. Almost always, however, it has involved the application of clearance procedures to the draft bills that are prepared to carry out the President's legislative recommendations. The existence of the President's program gives the legislative clearance process coherence, a set of goals, and greater significance. It provides general gui:lance for the Executive branch, both in shaping proposals that are not part of the President's program and in commenting on bills before the Congress. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 Purposes of the Clearance Function As noted earlier, the function is essentially a staff service for the President performed in accordance with his wishes and designea to assist him in carrying out his legislative responsibilities. It has several purposes, of which some assist the Congress and the Executive agencies themselves, as well as the President: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis it provides a mechanism for bringing together and staffing out agency legislative proposals which the President may wish to include in his legislative program; it helps the agencies develop draft bills that are consistent with and that carry out the President's policy objectives; it is a means of keeping Congress informed (through the "advice" transmitted by the agencies) of which bills are part of the President's program and of what the relationship of other bills is to that program; it provides a mechanism for assuring that Congress gets coordinated and informative agency views on legislation • which it has under consideration; it assures that bills submitted to Congress by one agency properly take into account the interests and concerns of other affected agencies and will therefore have the general support of such agencies; it provides a means whereby divergent agency views can be reconciled. THE WHITE HOUSE WASHINGTON January 22, 1981 MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES SUBJECT: REDUCING UNNECESSARY FEDERAL SPENDING coping with runaway deficits in the current and pending budgets is one of the most urgent tasks before us. Thus, today I am taking four steps that will help reduce unnecessary Federal spending. Effective immediately I am directing that, to the extent permitted under law, each Executive Department and Agency: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cut obligations for travel by 15 percent from the amounts available for the remainder of this fiscal year. Cut obligations for consulting, management and professional services, and special contract studies and analyses by 5 percent from the amounts shown for 1981 in the budget transmitted to Congress on January 15. (The cutback in consulting services is to be in addition to cutbacks ordered by the Carter Administration and the Congress.) Stop, until further notice, procurement of furniture, office machines and other equipment, except military equipment and equipment needed to protect human life and property. Finally, I am directing that Members of the Cabinet and other appointees set an example by avoiding unnecessary expenditures in setting up their Appointees are not to redecorate personal offices. their offices. This directive does not preclude reasonable and necessary cleaning, painting, and maintenance, or structural changes essential to the efficient functioning of an office. 41. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4rIt't 2 •••• The Director of the Office of Management and Budget will issue detailed instructions for carrying out the first three actions listed above. I am delegating to him authority to grant exemptions in those few cases where exemptions are necessary to provide essential services. As with the hiring freeze, I ask that this directive not detract from agency operations that directly affect the delivery of vital public services. Again, you should establish a clear hierarchy of needs within your agencies and assure that essential services are not interrupted. These four actions, together with the freeze on hiring of Federal civilian employees announced on January 20, will help redeem our pledge to the American people of a government that lives within its means. (Lbl`w4—. • )17, ,C) • • THE WHITE HOUSE • WASH I NGTON January 20, 1991 MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES SUBJECT: HIRING FREEZE 1 am ordering today a strict freeze on the hiring of Federal civilian employees to be applied across the board in the executive branch. This action is necessary because the national budget is out of control. Estimates of Federal spending for fiscal years 1981 and 1982 have — in a single year -- increased by $100 billion. Last July, during my campaign for the Presidency, I pledaed that we would take this actor" as a first step towards controlling the growth and size of government and stopping the drain on the economy by the public sector. Imposing a freeze now can eventually lead to a significant reduction in the size of the Federal work force. This begins the process of restoring our economic strength arid returning the Nation to prosperity. The Director of the Office of Management and Budget will issue detailed instructions concerning this freeze. I am delegating to him authority to grant exemptions in those rare and unusual circumstances where exemptions are necessary for the delivery of essential services. I ask that in carrying out this directive you insure the smallest impact possible on those areas of your agencies' operations that vitally affect the public, such as the processing of social security claims and the payment of veterans and retirement benefits. You should seek efficient use of personnel and funds by making reallocations within your respective agencies to meet highest priority needs and to assure that essential services are not interrupted. Obviously, contracting with firms and institutions outside the government to circumvent the intent of this directive must not be permitted. This begins the process of revising and reducing the 1981 and 1982 budgets, a project that will occupy much of our time during the coming weeks and months. This will be a demanding period for all of us; it is also a time of challenge and an unusual opportunity to serve our Nation well. I am relying upon you for strict implementation of this directive. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fir
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