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CM YEAR 1973 "The Changes in the Nation's Priorities in Three Years" For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 Stock No. 4101—0073 Price $3.00 The Budget of the United States for the fiscal year 1973 has as a central purpose a new prosperity for all Americans without the stimulus of war and without the drain of inflation. • The budget for fiscal 1972 reflects this Government's confidence in the American economy's ability and capacity to respond to sensible stimulation. The budget for 1973, held to full-employment balance, diminishes stimulation as the new prosperity takes hold, increases jobs, and brings us strongly forward toward our goal of a balanced budget in a time of full employment. • Preparing the Federal budget forces us to face up to the choices and challenges before u s — t o decide what national interests take priority. • One priority that most Americans will agree upon is the return of power to people, after decades of the flow of power to Washington. We do this by sharply cutting the rate of increase in Federal spending, and by major reductions in the individual income tax. • Another priority—one upon which so much of our progress at home depends—is to create a peaceful world order. We could never fulfill our hopes for a full generation of peace from a position of weakness; we can only negotiate and maintain peace if our military power continues to be second to none. • A third priority of this budget is to direct the resources of the Federal Government toward those needs the American people most want met, and toward the people who are most in need. Budget Highlights • Budget goals and directions 1 • Perspectives 3 • A growing non-inflationary economy 13 • A generation of peace 21 • Science and technology 35 • Meeting human needs with dignity 43 • Enhancing the quality of life 77 • Building confidence in government 91 • Conclusion 107 • Statistical tables 109 udget Goals and Directions AT HOME 9 A growing, non-inflationary economy » The transition to peace • Maintaining a strong national defense • Improving the quality of life ABROAD • Implementing the Nixon doctrine • Building the foundations for a full generation of peace • Increasing trade and understanding 1 Perspectives on the budget • Budget totals since 1971 • Outlays as percent of GNP • The budget dollar • Budget receipts • Individual income taxes • Tax savings • Federal vs. private debt • Federal debt as a percent of GNP • Percent distribution of gross Federal debt CHART 111 BUDGET TOTALS SINCE 1971 OUTLAYS AS PERCENT OF G N P $ Billions OUTLAYS RECEIPTS FY 1971 1972 Est. 1973 FY 1 9 6 3 65 71 bt. 7 3 CHART 115 THE BUDGET DOLLAR FY 1973 ESTIMATE Where it comes from. Where it goes NATIONAL DEFENSE HUMAN RESOURCES 32* 45< 1 0 < 7t P H Y S I C A\ L I ' Y RESOURCES) OTHER 6 BUDGET RECEIPTS $ Billions 225 TOTAL 200175- 27.5 / EXCISE TAXES A N D OTHER RECEIPTS 63.7 150 SOCIAL INSURANCE A N D RETIREMENT 125 H 100 75H 35.7 CORPORATION I N C O M E TAXES INDIVIDUAL I N C O M E TAXES -93.9 5025- °H— FY 1 9 6 9 i 1970 i 1973 Est. CHART 111 INDIVIDUAL FEDERAL INCOME TAXES AVERAGE ABOUT 10 PERCENT OF PERSONAL INCOME 963.0 TOTAL PERSONAL INCOME $ Billions INDIVIDUAL FEDERAL I N C O M E TAXES AS A PERCENT OF TOTAL PERSONAL I N C O M E Percent 453.4 INDIVIDUAL INCOME TAXES 93.9 47.6 1 1 FY 1 9 6 3 FY 1 9 6 3 1973 Est. 65 67 69 1 1 71 1 Est. 73 CHART 111 1969 INCOME TAXES vs 1973 INCOME TAXES $ BILLIONS • I N D I V I D U A L INCOME TAXES HAVE BEEN CUT BY $ 2 2 BILLION FEDERAL vs PRIVATE DEBT FEDERAL DEBT AS A PERCENT OF GNP $ Billions Percent 1600 PRIVATE DEBT FEDERAL DEBT 1953 57 NOTE: NET DEBT 61 65 69 CHART 115 PERCENT DISTRIBUTION OF GROSS FEDERAL 1971 DEBT O N JUNE 3 0 Percent 100 $ Billions 409.5 238.9 1940 7 0 71 11 A Growing Non-inflationary Economy • Growth of budget outlays • A slowdown in inflation • Full employment budget • Comparison of full employment budgets • The budget is one economic instrument CHART 15 GROWTH OF BUDGET OUTLAYS A v e r a g e Annual Percent 17% per year 15 — 10 — 5 — 9 % per year 4% FY 1965 to 1968 1 9 6 9 to 1972 1 9 7 2 to 1973 CHART 17 A SLOWDOWN I N INFLATION PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX (ANNUAL RATES) +6.1 +5.5 +4.7 +3.8 +3.0 1967 1968 1969 1970 1971 NOTE: Figures for 1967 through 1970 are calculated from December to December 16 for FRASER Digitized CHART 115 The Full Employment Budget WHY IT'S USED • Imposes the discipline of an upper limit on outlays • Permits orderly tax and spending consistent with steady growth • Furthers economic stability by restraint during boom periods and by stimulus during slack periods WHAT IT CONCERNS • The relationship between —Revenues at full employment and —Outlays at full-employment 17 CHART 115 COMPARISON OF FULL EMPLOYMENT BUDGETS $ Billions SURPLUS + 10+ 5BALANCE 1961 n 62 i • 63 64 65 66 67 68 69 70 71 72 73 - 5 -10- ES;TI MATES -15- 2 0 -25- 18 DEFICIT CHART 115 The Budget is One Major Economic Instrument The other major economic instruments are: # An adequate money supply growth # A temporary w a g e and price policy 19 A Generation of Peace • A strong national defense • Budget authority for DOD • Strategic Programs • Budget authority for DOD R & D • Shipbuilding budget authority • Number of military personnel for $1 billion 1964/73 • Military personnel vs. average pay and benefits • Outlays for national defense • Civilian and personnel costs as a percent of military DOD budget • Defense-related employment CHART 115 A substantial increase for Defense Resources to Strengthen our strategic nuclear deterrent Provide a high level of readiness and increased modernization for the General Purpose Forces Continue to transfer Vietnam operations to the South Vietnamese Preserve and enhance our position of technological superiority Better prepare the National Guard and Reserves to augment the Active Forces 23 CHART BUDGET AUTHORITY FOR DEPARTMENT OF DEFENSE $ Billions 115 si.7 75.4 71.2 FY 1971 1972 1973 • INCREASED BUDGET AUTHORITY IS PLANNED TO STRENGTHEN OUR MILITARY FORCES 24 CHART 115 STRATEGIC PROGRAMS DEPARTMENT OF DEFENSE s* $ Billions 7.7 FY 1971 7.6 1972 Est. 1973 • T O A FOR STRATEGIC PROGRAMS WILL BE INCREASED BY 16% 1972-73 25 CHART 115 BUDGET AUTHORITY FOR DEFENSE RESEARCH & DEVELOPMENT 8.5 $ Billions 7.7 FY 1971 1972 Est. 1973 • INCREASED BUDGET AUTHORITY FOR MILITARY RESEARCH & DEVELOPMENT IS ESSENTIAL TO ASSURE OUR CONTINUED TECHNOLOGICAL SUPERIORITY 26 CHART 115 SHIPBUILDING BUDGET AUTHORITY DEPARTMENT OF DEFENSE $ Billions 3.6 3.0 2.4 1966 - 6 9 . Average 1971 1972 . Est. c 1973 * Shipbuilding budget authority will be more than double the 1966 - 6 9 average 27 CHART 115 HOW M A N Y MEN IN THE ARMED FORCES WILL $1 BILLION FUND ( PAY & ALLOWANCES )? AT 1964 RATES 219,000 AT 1973 RATES 105,000 INCREASE IN COST 28 109% 1964-1973 CHART 115 MILITARY PERSONNEL vs AVERAGE PAY & BENEFITS 3.5 2.7 MILITARY PERSONNEL MILLIONS $4570 AVERAGE PAY & BENEFITS FY 1 9 6 4 1968 1973 Est. • P L A N N E D M A N P O W E R IS CLOSE TO PRE-VIETNAM LEVELS BUT AVERAGE PAY & BENEFITS ARE MORE THAN DOUBLE THE PRE-VIETNAM AVERAGE 29 OUTLAYS FOR NATIONAL DEFENSE PERCENT OF BUDGET OUTLAYS FOR NATIONAL DEFENSE $ Billions lOO-i Percent FY 1955 30 1960 1965 1955 1960 1965 1970 1973 Est. CHART 115 NATIONAL DEFENSE OUTLAYS 29.3 FY 1 9 6 3 64 31 CHART 111 CIVILIAN & MILITARY PERSONNEL COSTS AS A PERCENT OF DEFENSE BUDGET FY 1 9 6 4 1971 1973 PAY REQUIRES A RAPIDLY INCREASING SHARE OF THE DEFENSE BUDGET CHART 115 DEFENSE RELATED EMPLOYMENT Millions of People DEFENSE INDUSTRY 7.8 8.0 D O D CIVILIAN MILITARY 5.4 5.3 \ ? FY1964 65 66 67 68 69 70 71 72 73 Est. •DEFENSE RELATED EMPLOYMENT HAS BEEN REDUCED ONE-THIRD F R O M THE 1968 LEVEL A N D IS N O W LOWER T H A N PRE-VIETNAM LEVELS 33 Science and Technology • Utilizing high technology Agencies for civilian needs • Obligations for R & D programs • The future space program • Atomic energy and the energy problem • National Science Foundation • Impact of satellites on oceanic telephone circuit availability CHART 111 Utilizing High Technology Agencies For Civilian Needs NASA • increased emphasis on programs which provide direct benefits to society, such as weather, communications, navigation, Earth resources, aeronautics and transportation AEC • Accelerate development of the liquid-metal fast-breeder power reactor to meet future energy needs and other clean energy projects $ Intensify environmental research and regulatory activities, to assure that nuclear power can safely meet growing demands for electricity NSF • Expand research on national problems such as pollution, energy needs, and municipal services • Initiate programs to explore new ways to encourage application of science and technology to needs of industry, states and local governments CHART 111 STRENGTHENING THE FEDERAL R & D EFFORT $Billi ons (Obligations) 10 Defense (including AEC's military-related activities) 8 6 4 2—i r All other civilian 1 FY1964 i 66 i 1 68 i i 70 • STRENGTHENING THE NATION'S DEFENSE CAPABILITY THROUGH R&D. i 71 i 72 r 73 EST* EST* • BALANCING SPACE PROGRAM INVESTMENTS TO EMPHASIZE APPLICATIONS OF TECHNOLOGY TO SUCH AREAS AS WEATHER PREDICTION, COMMUNICATIONS AND NAVIGATION AND THE SPACE SHUTTLE. • INCREASING OTHER CIVILIAN PROGRAMS TO TURN SCIENCE AND TECHNOLOGY TO THE SERVICE OF MAN AND TO STRENGTHENING BASIC RESEARCH. CHART 111 THE FUTURE SPACE PROGRAM M A N N E D SPACE COSTS DROP PROGRAM INCREASED EMPHASIS O N APPLICATIONS, AERONAUTICS, A N D SCIENCE $ Billions $ Millions 1000 750 - 500 FY 1963 1963 THE FUTURE SPACE PROGRAM This Administration's space program has three major objectives: Completing the Apollo program Reducing future costs of space Achieving a better balance in future space investments Transition to post-Apollo space program • Completion of Apollo lunar landings (CY 1972) followed by manned earth orbital operations • Skylab experimental space station (CY 1973) to test man's capabilities in space • Manned reusable Space Shuttle to reduce cost of space operations by 1979 Application of Aerospace Technology • • • First demonstration of usefulness of satellite pictures for agriculture, forestry, and geology in CY 1972 Development of improved weather, communications, and navigation satellites to benefit men on Earth Research on short take-off and landing aircraft to reduce noise, congestion and travel time Science in Space • • Astronomical data to better understand nature and evolution of the universe Exploration of planets to increase knowledge about the solar system CHART 115 Atomic Energy and the Energy Problem The emerging energy crisis • Demand for electric energy is rising steadily • Fossil fuel reserves (coal, oil, gas) are limited—fossil fuels cause pollution • Low-cost uranium needed for nuclear power is limited in supply AEC's programs to meet the problem • Substantial increase in efforts to make nuclear power compatible with our environment • Demonstration of a fast breeder reactor by 1980 — Makes more fuel than it uses — More compatible with environmental needs than present reactors • Work to harness the fusion process for our energy needs past the year 2 0 0 0 • Investments by the public and industry 40 CHART 43 NATIONAL SCIENCE FOUNDATION $ Millions FY 1960 1962 1964 1966 1968 1970 CONTINUED GROWTH IN SCIENCE ACTIVITIES • Initiate programs to explore new ways to encourage the application of science and technology to the needs of industry and State and local governments; • Increase problem-focused research to intensify research efforts on national problems such as pollution, energy needs and municipal services; • Increase fundamental research support to permit the continued progress of science. 1972 1973 Est. CHART 111 IMPACT OF SATELLITES O N OCEANIC TELEPHONE CIRCUIT AVAILABILITY Thousands of Circuits 24-i FY 1961 65 71 Relay and Syncom satellites launched by NASA prior to 1965 demonstrated technology. Early Bird satellite, launched by INTELSAT consortium in 1965, was the first of four new commercial satellite series. Latest satellite provides more than 5000 telephone circuits. Intercontinental telephone rates have dropped dramatically. In 1971 over 600 hours of intercontinental T V programming were broadcast via satellite. NASA Applications Technology Satellites (ATS) will make another advance in 1973 with direct Satellite-to-School communications Commercial satellites may be available for domestic coast-to-coast communications by 1976. Meeting Human Needs With Dignity • Welfare reform and income security programs • Improving medical care programs • Combating the drug problem • Food assistance • Education programs • Veterans benefits • Crime outlays • Civil rights r 49 PERCENT OF BUDGET OUTLAYS FOR HUMAN RESOURCES Percent OUTLAYS FOR H U M A N RESOURCES $ Billion Est. Est. 45 CHART 111 WELFARE COSTS AFDC PAYMENTS $ Billions 1 FY 1 9 5 0 i 1955 i 1960 I 1965 i 1970 i 1973 Est. r 1977 Est. CHART 51 PUBLIC ASSISTANCE RECIPIENTS BY PROGRAM Millions 12A I D TO FAMILIES W I T H DEPENDENT CHILDREN ^ / 10- 8 - 6 - 4OLD-AGE 2 - DISABLED CY 1945 1950 1955 1960 47 CHART 115 Welfare Reform Plan 9 Combines strong work requirements with strong work incentives « Provides uniform minimum Federal payments for families, aged, blind and disabled • Includes low-income working families for the first time • Establishes uniform eligibility standards • Provides for a major expansion in training and child care facilities to enable beneficiaries to qualify for meaningful employment • Reduces fiscal pressure on the states • Establishes a national administrative structure with high standards of control, service and efficiency 48 CHART 53 WORK REFERRAL SYSTEM "THE FLOW FROM WELFARE TO WORK" FAMILY APPLIES FOR ASSISTANCE ELIGIBILITY DETERMINATION » PAYMENT LEVEL DETERMINATION 5 FAMILY ASSISTANCE PROGRAM (FAMILIES WITH NO EMPLOYABLE MEMBERS) OPPORTUNITIES FOR FAMILIES PROGRAM (FAMILIES WITH EMPLOYABLE MEMBERS) REFUSAL OF WORK OR TRAINING RESULTS IN LOSS OF BENEFITS m • I ASSISTANCE PAYMENTS AND SERVICE REFERRAL J -r INCAPACITATED TO VOCATIONAL REHABILITATION ASSISTANCE PAYMENTS AND SERVICE REFERRAL PERSONS NEEDING EMPLOYABILITY DEVELOPMENT EMPLOYABILITY REVIEW AND PLAN •ON-THE-JOB TRAINING 'CLASSROOM TRAINING 'BASIC EDUCATION 'UPGRADING OF T H E WORKING POOR •PUBLIC SERVICE JOBS ENTER COMPETITIVE JOBS 49 CHART 111 INCOME SECURITY OUTLAYS $Billions Total FY 7 3 $Billions lOO-i 80 - 69.7 TOTAL 44.8 60- 40 - 12.3 SOCIAL SECURITY OTHER RETIREMENT AND SOCIAL INSURANCE PUBLIC ASSISTANCE AND SERVICES i FY 1961 62 63 64 65 66 67 68 69 70 72 73 Est. CHART 55 DISTRIBUTION OF ALL FEDERAL HEALTH DOLLARS TRAINING AND TRAINING EDUCATION & $317 EDUCATION $1,458 CONSTRUCTION CONSTRUCTION $450 PREVENTION $600 & 2% CONTROL $1,124 4% PREVENTION AND CONTROL $418 FISCAL YEAR 1965 ($5.2 Billion) FISCAL YEAR 1973 ( $ 2 5 . 5 Billion) Estimate 51 CHART 115 SOARING COSTS OF MEDICAL CARE PRICE INDEXES 52 CHART 115 FEDERAL OUTLAYS FOR THE ELDERLY Millions of People $ Billions 30 60- Federal outlays for elderly Number of elderly \ -25 -20 45- -15 30- f-'-'-V-M -10 15- FY 1 9 6 7 68 69 70 71 72 Est. 5 73 Est. 53 CHART 111 RISING OUTLAYS FOR MEDICAL PURPOSES * Expenditures deflated by consumer price index for medical care CHART 115 PUBLIC AND PRIVATE EXPENDITURES FOR HEALTH CARE PUBLIC PUBLIC FY 1966 $ 42.3 BILLION FY 1971 $ 7 5 BILLION 55 CHART 115 PUBLIC A N D PRIVATE FUNDS FOR HEALTH CARE OF DIFFERENT AGE GROUPS FY 1 9 7 0 \\ PRIVATE \V 73% SSSSS2 ssssss UNDER 56 for FRASER Digitized 19 YEARS 19-64 YEARS 65 YEARS AND OVER CHART 115 BIOMEDICAL RESEARCH, UNITED STATES $ Billions 4-1 OTHER SUPPORT (OTHER PRIVATE SUPPORT A N D STATE A N D LOCAL G O V E R N M E N T ) 3.04 INDUSTRY SUPPORT 3- FEDERAL SUPPORT * 2.05 2 - 1- .18 .31 1 FY 1951 1956 1961 1966 1971 * Covers obligations for medical and health-related research excluding training or construction 57 CHART 111 MEDICAID-MEDICARE - RECIPIENTS & COST Recipients Millions Cost $ Billions 40 - 15MEDICAID MEDICARE 3010MEDICARE 20- 10- FY 1969 Medicaid Medicare Provides medical assistance to persons entitled to assistance payments under Social Security Act. Pays Medicare deductible and coinsurance for needy aged. Pays premiums for needy aged for medical insurance under Medicare. • NOTE: Provides protection against the costs of hospitalization for the Nation's aged population. Pays for a large proportion of physician fees and other outpatient costs incurred by the aged. supplementary Pays for services not covered by Medicare for needy aged. Has established minimum quality standards for medical care in all extended care facilities which elect to receive Medicare reimbursements. Includes d u p l i c a t i o n because some persons receive both M e d i c a r e a n d Medicaid CHART 115 SERVICES FOR WHICH MEDICAID A N D MEDICARE DOLLARS ARE SPENT MEDICARE (Federal Funds) MEDICAID (Federal Funds) HOME HEALTH/ OUTPATIENT SERVICES EXTENDED CARE FACILITIES PHYSICIANS' SERVICES 26% INPATIENT HOSPITAL SERVICES OTHER INPATIENT HOSPITAL SERVICES / 13% 68% 1 PHYSICIANS ^ SERVICES PRESCRIBED D R U G S D E N T A L CARE 1972 59 CHART 64 COMBATING THE DRUG PROBLEM 365.2 $ Millions 350-. • LAW ENFORCEMENT FUNDS FOR TREATMENT, REHABILITATION, EDUCATION, TRAINING, RESEARCH 229.0 1 FY 1 9 6 9 1970 1971 1972 1973 CHART 115 FEDERAL NARCOTICS ENFORCEMENT SEIZURES OF ILLEGAL NARCOTICS ARRESTS FOR DRUG VIOLATIONS Lbs, Thousands 4000 24 3000- 2000- 1000- FY1969 70 61 FOOD ASSISTANCE $ Billions 4.5 4.0-1 3.5 3.0- FEDERAL EXPENDITURES FOR FOOD ASSISTANCE GROWTH FROM 1969 to 1973: — 175% increase in children receiving free or reduced priced school lunches. — 5 0 % rise in areas participating in food stamp program. — Food stamp recipients quadrupled. — Average food stam p bonus per person more than doubled. 2.5- 2.0 n — i FY 6 0 62 62 i i i i i i 64 66 68 i 70 CHART 111 MAJOR EDUCATION AND MANPOWER TRAINING REFORMS OUTLAYS FOR EDUCATION AND MANPOWER TRAINING RISING $ Billions EDUCATION • Redistribute Student Aid to Poor & Lower Income Families • A National Foundation for Higher Education e A National Institute of Education • G r e a t e r State a n d Local Role Through Education Revenue Sharing MANPOWER • Consolidate a n d Decentralize Decision M a k i n g Through M a n p o w e r Special Revenue Sharing • Provide Transitional Public Service Employment • Assist W e l f a r e Recipients To Find Regular Jobs FY 1962 64 66 68 70 72 73 Est. CHART 68 CHILD NUTRITION PROGRAMS $ Millions FEDERAL SCHOOL LUNCH SUPPORT FOR THE NEEDY 1400n FY 1973 FY 1969 EXPENDITURES ALL CHILDREN 1200- Free and reduced price lunches served 504 million Federal contribution per lunch 20 cents Number of children reached 3.1 million Federal expenditures $107 million 1000- 1376 million 56 cents 8.4 million $770 million Free and reduced price lunches served to needy children: 53 to 67 cents per lunch contributed by Federal Government. 800- FEDERAL SUPPORT FOR ALL OTHER MEALS 600- 400- Federal expenditures* Number of paid lunches served Federal contribution for lunches served all children 200- $ FY 1969 FY 1973 504 million 2854 million 11.8 cents 606 million 3024 million 13.1 cents Meals served to all children: 13 cents per lunch contributed by Federal Government. FY 1 9 6 0 I I • 1965 1970 » I 1973 Est. * Includes outlays for school breakfast and non-school programs. CHART 115 COLLEGE STUDENT AID EDUCATIONAL OPPORTUNITY GRANTS AND WORK STUDY Awards Outlays Thousands $Millions 1400-1 r700 OUTLAYS 1200- -600 AWARDS 1000 J -500 800- -400 600- -300 400- -200 200- -100 FY 1 9 6 9 70 71 72 73 Est. 65 CHART 71 JOB SAFETY & HEALTH ACTIVITIES - OUTLAYS $ Millions Est. CHART 72 VETERANS BENEFITS A N D SERVICES $ Billions Est. NOTE: D A T A A B O V E EXCLUDES VETERANS H O U S I N G CHART 73 VETERANS MEDICAL PROGRAMS -PATIENTS TREATED Thousands Est. CHART 115 VETERANS COMPENSATION A N D PENSIONS N O OF CASES (Thousands) COMPENSATION PENSIONS On FY1967 1967 2360 2193 1968 2369 2219 1969 2395 2236 1970 2437 2250 1971 2493 2263 1972 2549 2297 1973 2582 2369 68 69 CHART 115 VETERAN READJUSTMENT BENEFITS - Gl BILL Millions of Veterans $ Billions 2.7 2.1 1.8- 1.5 - 1.2- .9- .6- .3- FY1967 70 for FRASER Digitized 1968 1969 1970 1971 1972 1973 Est. CHART 111 FEDERAL OUTLAYS FORTHE REDUCTION OF CRIME $ Millions 3000-1 2500- 2000- 1500- 1000- FY1969 1970 1971 1972 1973 • DIRECT FEDERAL OUTLAYS Est. • A I D T O STATE A N D L O C A L G O V E R N M E N T CHART 77 FIGHT AGAINST ORGANIZED CRIME Number of cases 3200 O r g a n i z e d crime strike forces Indictments ] Convictions | Cases involving high echelon figures 24 2400- 16 8 - 1600- FY 6 9 70 71 800- Digitized 72 for FRASER ^Denotes FY 1 9 6 9 1970 indictments/convictions of high level organized crime figures. 1971 CHART 78 LAW ENFORCEMENT ASSISTANCE GRANTS $ Millions 900-1 | | ACTION & PLANNING GRANTS H I DISCRETIONARY GRANTS H CORRECTIONAL GRANTS | | ADMINISTRATION AND OTHER FY 1969 1970 1971 1972 Est. 1973 73 CHART 115 OUTLAYS FOR CIVIL RIGHTS ACTIVITIES $ Billions 3-i I I MINORITY ASSISTANCE * I I ENFORCEMENT • 2 - 0-1 • FY 1 9 6 9 *See statistical tables 74 1 ' 70 • 71 ' • " 72 73 Est. Est. CHART 111 FEDERAL CONTRACT COMPLIANCE ACTIVITIES CHART 115 EQUAL EMPLOYMENT OPPORTUNITY COMMISSION ACTIVITIES $ Millions 76 for FRASER Digitized Investigations, Thousands Est. Est. Enhancing the Quality of Life • Major environmental quality programs • Land/water resources programs • Transportation programs • Assisting small business CHART 111 MAJOR ENVIRONMENTAL QUALITY PROGRAMS $Billions Est. Est CHART 78 POLLUTION CONTROL AND ABATEMENT CONSTRUCTION GRANTS FOR MUNICIPAL SEWAGE TREATMENT PLANTS $ Billions 1.6- 1.2- 8 - BUDGET OUTLAYS* 4- \ FY 65 *EPA only 80 67 I I 69 i 73 Est. 1969 72 73 Est. ** Part of EPA pollution control abatement CHART 111 POPULATION SERVED SECONDARY TREATMENT PLANTS REMEDIAL ACTIONS TO REDUCE POLLUTION FROM FEDERAL FACILITIES Millions SMillions 130 120 - 110- NUMBER OF PEOPLE 100- 90- 80- i FY 1968 6 9 70 71 Est. CHART 78 FEDERAL INVESTMENT IN WATER RESOURCES $ Billions 1.8 FY 1 9 6 7 'Includes Corps of Engineers, Bureau of Reclamation, and Soil Conservation Service (construction funds o n l y ) . 82 Est. CHART 111 LAND A N D WATER CONSERVATION FUND RECREATION GRANTS TO STATES D I S T R I B U T I O N OF O B L I G A T I O N S U R B A N A N D RURAL AREAS -Est. ACRES A C Q U I R E D W I T H G R A N T ASSISTANCE -Est. $ Millions Thousands _1/ U r b a n means grants made (or projects located in cities of 2 5 , 0 0 0 or more population 2 / Rural means grants made for projects located anywhere else but in cities of 2 5 , 0 0 0 or more population CHART 111 Focusing on Urban Transportation Problems Key problems ...urban congestion ...reduced mobility and quality of service ...pollution and noise Federal response to present problems ...new highway program to increase efficiency a n d capacity of existing streets without new construction (TOPICS) ...new highway program to improve urban surface streets ...expanded bus assistance programs that h a v e procured over 13,000 new buses, build new facilites, a n d instituted preferential bus treatment in 11 major urban areas ...accelerated support for new technology, rail rapid systems in major cities ...instituted environmental impact assessments ...new program to assist persons being relocated Federal programs for the future ...a sevenfold increase since 1 9 7 0 in urban mass transit research, development a n d demonstration ...increased research and development on electronic highway traffic assistance systems ...major cooperative planning efforts with the states and cities ...research in environmental, social a n d economic impacts CHART 111 FEDERAL RESOURCES FOR URBAN TRANSPORTATION $ Millions 2000-. 1600- 1200800- I 1 400- • FEDERAL RESOURCES FOR URBAN MASS TRANSIT P R O G R A M S • FEDERAL RESOURCES FOR URBAN H I G H W A Y P R O G R A M S • FEDERAL RESOURCES FOR AIRPORTS CHART 111 TRANSPORTATION RESEARCH AND DEVELOPMENT $ Millions 7 0 0 -i 600500- m WATER [ • SURFACE 400300200100- 1969 FY1966 M A J O R 1973 ADVANCED AIR TRAFFIC CONTROL SYSTEMS M O R G A N T O W N PERSONAL RAPID TRANSIT TEST EXPERIMENTAL SAFETY AUTOMOBILES FREEWAY AND TRAFFIC CONTROL SYSTEMS IMPROVED HIGHWAY SAFETY NEW BUS DESIGNS EXPERIMENTAL 3 0 0 M P H TRACK AIR CUSHION VEHICLE • • • • PROGRAMS 1973 Est. DEVELOPMENT OF OUIET AIRCRAFT ENGINES IMPROVEMENTS TO METROLINER A N D TURBO TRAIN DEVELOP STOL RESEARCH AIRCRAFT DESIGN OF DUEL MODE SURFACE TRANSPORTATION SYSTEMS CHART 115 Major Initiatives For Surface Freight Industry Proposed Legislative recommendations to assist surface freight industry Regulatory Modernization Act would • increase carrier competition and foster greater efficiency thereby saving the public and the shippers about 2 billion dollars annually • increase ability of carriers to abandon unprofitable and unneeded routes; in the case of railroads a minimum of 10% of total trackage • expand capability of carriers to enter new markets • align carriers' rates more closely to costs of providing the service Transportation Assistance Act would • substantially reduce freight car shortage by Federal guarantees of up to $3 billion for new equipment and expand research for a national rolling stock control system • prohibit discriminatory taxation of surface carrier properties 87 CHART 98 ASSISTING SMALL BUSINESS • Increase the number and capabilities of small businesses • Provide increasing opportunities for minority owned businesses • Achieve these two primary objectives by ever increasing participation of private institutions. Thousands v FY 1969 I 70 I 71 I 72 Est. NUMBER ASSISTED INCREASED 147% BETWEEN 1969-73 73 1969 H 70 I 71 I 72 73 Est. NUMBER ASSISTED INCREASED 128% BETWEEN 1969-73 CHART 111 PERCENTAGE INCREASE OF MINORITY EMPLOYEES EACH GRADE, FROM NOV. 1969 - MAY 1971 55.7 33.6 iiiililii 21.4 m M&Wp 7.3 -1.1 GS 1 - 4 5-8 9-11 ' G e n e r a l Schedule and similar grade groupings. 12-13 14-15 16-18 Building Confidence in Government Revenue Sharing: Returning Power to People • • • • Why revenue sharing Revenue sharing The case for special revenue sharing Revenue sharing—First full year Making Government Work Better • • • • • • • • • Management goals of the administration Management objectives for the future A commitment to better management Reorganization of the executive branch continued (part I) . . . President's departmental reorganization program Reorganization of the executive branch continued (parts II and III) . . . New management systems cut red tape Steps toward federal executive development and constructive labor relations Intergovernmental cooperation received increased emphasis CHART 115 Why Revenue Sharing • Moves money and power closer to people • Builds capacity for better program performance • Relieves mounting fiscal pressure on State and local government • Responds quickly to critical needs 93 CHART 115 Revenue Sh A COMPLEMENTARY SYSTEM • GENERAL REVENUE SHARING-directly transfers federal tax dollars to States and localities for use at their option • SPECIAL REVENUE SHARING-replaces narrow categorical grant system with direct federal transfers to States and localities for top priority purposes 94 CHART 115 The Case for Special Revenue Sharing • Delegates money and power to produce results in major functional areas • Removes rigidities and merges narrowly defined grants into broad program areas • Responds to differing needs among regions, States and localities 95 CHART 115 EFFECT OF REVENUE SHARING FIRST FULL YEAR $ Billions GENERAL REVENUE SHARING 30% 96 for FRASER Digitized GENERAL REVENUE SHARING SPECIAL REVENUE SHARING 70% SPECIAL REVENUE SHARING 12.3 Elementary and Secondary Education 3.2 Manpower Training 2.0 Transportation 2.8 Urban Development 2.3 Rural Development 1.1 Law Enforcement .9 TOTAL PROJECTED INCREASE GENERAL REVENUE SHARING Special Revenue Sharing Will Also Increase 1973 1980 $17.6 CHART 111 Management Goals of the Administration Structures • Procedures • Attitudes Permitting better decision-making Based on the real needs of the people CHART 115 M a n a g e m e n t Objectives for the Future —Completing What's Been Started • Departmental reorganization • Federal assistance review • Performance measurement • Intergovernmental cooperation/ interagency coordination 98 CHART 115 A Commitment to Better Management of the Federal Government In the past year, the administration continued its efforts to m a k e government more responsive to the needs of the people a n d to deliver services more effectively through improved management • Reorganization of the executive branch continued • Improved management systems cut red tape a n d enhanced delivery of government services • Performance measurement system established to a i d in the implementation of n e w policies • Efforts continued to promote intergovernmental cooperation and strengthen our federal system • Steps taken advanced federal executive development and constructive labor - management relations 99 CHART 111 Reorganization of the Executive Branch Continued . . . 1. The President's Historic Reform of the Cabinet Moved Forward •Detailed legislation w a s submitted on four new departments • Community Development • Natural Resources • Human Resources • Economic Affairs •The House and Senate held extensive hearings, with more expected CHART 115 PRESIDENT'S DEPARTMENTAL ORGANIZATION PROGRAM DEPARTMENT OF THE TREASURY DEPARTMENT OF NATURAL RESOURCES DEPARTMENT OF HUMAN RESOURCES LAND & RECREATION HEALTH SERVICES WATER RESOURCES INCOME MAINTENANCE & SECURITY ENERGY & MINERAL RESOURCES MARINE ATMOSPHERIC & TERRESTRIAL RESOURCES & TECHNOLOGY INDIANS & TERRITORIES EDUCATION MANPOWER SOCIAL & REHABILITATION SERVICES DEPARTMENT OF AGRICULTURE DEPARTMENT OF JUSTICE DEPARTMENT OF ECONOMIC AFFAIRS DEPARTMENT OF COMMUNITY DEVELOPMENT DOMESTIC & INTERNATIONAL COMMERCE URBAN & RURAL DEVELOPMENT ASSISTANCE SCIENCE & TECHNOLOGY HOUSING LABOR RELATIONS & STANDARDS "HIGHWAYS & URBAN MASS TRANSIT SYSTEM NATIONAL TRANSPORTATION SYSTEMS FEDERAL HIGH RISK INSURANCE PROGRAMS BUSINESS DEVELOPMENT SOCIAL & ECONOMIC INFORMATION 101 CHART 111 Reorganization of the Executive Branch Continued . . . II. Meanwhile, new agencies were created to strengthen the Executive Branch • • • • Special Action Office for Drug Abuse Prevention Office of Consumer Affairs Council on International Economic Policy Action—combining Peace Corps, Vista, and other volunteer services • U.S. Postal Service III. Significant reorganizations were effected • Reforms in organization and management of intelligence programs • Reorganization of major statistical activities CHART 117 New Management Systems Cut Red Tape, Improved Delivery of Services • Annual reporting burdens reduced by 10 million manhours since 1970 • Federal advisory and interagency committees reduced by 2 0 percent since 1970 • Performance measurement system established to keep new programs results - oriented • Presidential and legislative policy implementation systems renewed • Millions of dollars worth of unused, unneeded federal property returned to the public • Grant application process simplified by new, single application Integrated Grant Administration Program and other measures • Principal economic indicators now issued more promptly than three years ago 103 CHART 118 Steps Toward Federal Executive Development a n d Constructive Labor - M a n a g e m e n t Relations ® Executive development planning moved forward in all federal agencies • Special attention was focused on career development of minority group employees and women in the federal service • An executive order expanded the scope of collective bargaining in the federal government • Supervisors got more training in labor/management relations • N e w information systems on the federal workforce were designed for early implementation CHART 119 Intergovernmental Cooperation Received Increased Emphasis — Efforts Continued To Strengthen Ou Fed era I System • A federal assistance review entered its third and final year • More agencies joined the common regional boundary system • Federal regional councils showed increasing effectiveness • States and local governments reviewed federal actions while they were still in the proposal stage • Special notification was sent to each state governor and legislature on grants to the state and to local governments within its borders CONCLUSION "It is essential to preserve the private enterprise system, with its competitive spirit and its work ethic, which has done so much to inspire the independent and help the dependent, and has made this Nation the economic example to the rest of the world. That system has enabled us to secure, for our people, a far higher standard of living than any experienced, or even envisioned, by the rest of the civilized world. • I do not wish it said of my Administration that we furthered or encouraged the process of discarding that heritage. • I want it to be said that this Administration foresaw the danger, held spending to amounts that could be paid from full-employment revenues, and took all steps possible to reduce the need for raising taxes so that the Federal Government plays a smaller, not a larger, role in the life of each of us. In this way, every citizen will have a larger share of the fruits of his labor to spend the way he or she freely chooses." Statistical Tables Note.—All years referred to are fiscal years, unless otherwise noted. Details in the tables, text, and charts of this booklet may not add to totals because of rounding. Table for Chart 6 Table for Chart 5 THE BUDGET DOLLAR Budget Totals Since 1971 ($ Billions) Fiscal Year 1971 1972 1973 Outlays as a % GNP Fiscal 1973 Dollars in Billions % of Total Receipts 188.4 197.8 220.8 Outlays 211.4 236.6 246.3 Fiscal Year % of GNP 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 19.4 19.4 18.1 18.7 20.6 21.6 20.6 20.6 21.0 21.7 20.5 Where It Comes From Individual Income Taxes Social Insurance Taxes Corporation Income Taxes Excise Taxes Other Borrowing, etc. $ 93.9 63.7 35.7 16.3 11.2 25.5 38 26 14 7 5 10 $246.3 100 National Defense!!/ Human Resources Physical Resources Interest 2 / Other $ 78.3 110.8 25.7 15.5 16.0 32 45 10 6 7 Total $246.3 100 Total Where It Goes n l ' Ic u ld e s defense expenditures in agencies outside the Defense Department. Excludes interest paid to Trust Funds. Ill Table for Chart 89 BUDGET RECEIPTS TOTALS ($ Billions) Fiscal Year 112 Social Insurance Individual Corporation and Income Taxes Income Taxes Retirement INDIVIDUAL INCOME TAX RECEIPTS AVERAGE ABOUT 10% OF TOTAL PERSONAL INCOME Excise Taxes and Other Receipts 1969 87.2 36.7 39.9 23.9 1970 90.4 32.8 45.3 25.2 1971 86.2 26.8 48.6 26.8 1972 EST 86.5 30.1 54.1 27.1 1973 EST 93.9 35.7 63.7 27.5 Table for Chart 90 (In billions of dollars) Individual Income Taxes Personal Income 1963 $47.6 $453.4 1973 $93.9 $963.0 Individual Income Taxes as a Percent of Personal Income 1963 1964 1965 1966 1967 1968 1969 1970 10.5 10.1 9.5 9.8 10.1 10.5 12.1 11.6 1971 1972 1973 10.4 9.8 9.8 Table for Chart 89 Table for Chart 90 1969 INCOME TAXES vs 1973 INCOME TAXES ($ Billions) Receipts Reductions Receipts Under From Changes Assuming Current Rates In Rate 1969 Rates & Fiscal Year and Structure and Structure Structure 1968 1969 1970 1971 1972 1973 68.7 87.2 90.4 86.2 86.5 93.9 2.0 10.4 16.8 22.4 68.7 87.2 92.4 96.6 103.3 116.3 FEDERAL VS. PRIVATE DEBT* ($ Billions) Year 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Private Federal (Calendar (Held by the Public Year-End) End Calendar Year) $ 322.7 340.0 392.2 427.2 454.3 482.4 528.3 566.1 609.1 660.1 722.3 789.7 870.4 953.5 1034.3 1148.4 1271.6 1356.9 — — — $ 226.8 229.1 229.6 224.3 223.0 231.0 241.4 239.8 246.7 253.6 257.5 264.0 266.4 271.8 286.5 291.9 289.3 301.1 317.0 est. 356.0 est. 375.0 est. FEDERAL DEBT DECLINING AS % OF GNP Fiscal Year % of GNP 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 60.9 62.0 59.9 54.3 50.9 51.4 50.1 47.9 47.1 45.8 44.4 42.1 40.0 36.7 34.8 35.2 31.1 29.9 30.2 31.1 est. *Net debt 113 Table for Chart 11 Table for Chart30TableforChart31 Percent Distribution of Gross Federal Debt on June 30 Comparison of Full Employment Budgets Fiscal Year Government Accounts Federal Reserve System General Public 1953 1954 1955 1956 1957 1958 1959 17.9 17.1 17.4 18.5 19.4 19.1 18.3 9.3 9.2 8.6 8.7 8.5 9.1 9.1 72.8 73.7 74.0 72.8 72.1 71.8 72.6 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 18.5 18.5 18.1 18.1 18.7 19.0 19.7 21.6 21.4 23.9 9.1 9.3 9.8 10.3 11.0 12.1 12.8 13.7 14.1 14.7 72.4 72.2 72.1 71.6 70.3 68.9 67.5 64.7 64.5 61.4 1970 1971 25.5 25.7 15.1 16.0 59.4 58.3 ($ Billions) Surplus or Deficit Fiscal Year 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Under Full Employment $ +10.7 + 3.3 + 5.7 + 2.7 + 2.8 - 6.2 - 10.7 - 25.3 - 0.4 + 3.1 + 4.9 - 8.1 + 0.7 Table for Chart 30 Table for Chart 31 Number of Military Personnel for $1 Billion Military Personnel vs Average Pay and Benefits 1964 Military personnel outlays, active forces -j- Average strength = Average per man $12,313 million 2,693,000 $ 4,570 1973 Military personnel outlays, active forces 4- Average strength = Average per man # Men per $1 billion 1964 219 thousand 1973 105 thousand Increase of 109% $22,800 million 2,397,000 $ 9,500 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Dollars Avg. Pay & Benefits Thousands Military End Strength (DOD) 4570 4700 5000 5200 5500 5900 6700 7400 8600 9500 2687 2655 3094 3376 3547 3459 3066 2714 2392 2358 Table for Chart89TableforChart90 Outlays For National Defense 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 116 ($ Billions) % of Budget Outlays 40.2 40.3 42.8 44.4 46.6 45.9 47.4 51.1 52.3 53.6 49.6 56.8 70.1 80.5 81.2 80.3 77.7 78.0 78.3 58.7 57.2 55.7 53.8 50.6 49.8 48.4 47.8 46.9 45.2 41.9 42.2 44.3 45.0 44.0 40.8 36.8 33.0 31.8 Table for Chart 33 National Defense Outlays ($ Billions) 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 RESEARCH & DEV. 6.4 7.0 6.2 6.3 7.2 7.7 7.5 7.2 7.3 7.8 7.9 PROCUREMENT & OTHER 16.9 16.4 12.6 16.5 21.5 27.1 24.4 22.5 20.3 19.5 17.5 OPERATION & M A I N T . 11.9 11.9 12.3 14.7 19.0 20.6 22.2 21.6 20.9 20.7 21.2 MILITARY & RETIRED PERSONNEL 13.0 14.2 14.8 16.8 19.8 22.0 23.8 25.9 26.0 27.1 29.3 4.1 4.0 3.6 2.6 2.6 3.1 3.4 3.1 3.1 3.0 2.4 MILITARY ASSISTANCE & ATOMIC ENERGY, DEFENSE RELATED ACTIVITIES Table for Chart 35 FISCAL YEAR 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Defense Related Employment ( MILLIONS) INDUSTRY DOD CIVILIAN 2.3 2.1 2.6 3.1 3.2 3.0 2.4 2.0 1.9 1.9 1.0 1.0 1.1 1.3 1.3 1.3 1.2 1.1 1.0 1.0 MILITARY TOTAL 2.7 2.7 3.1 3.4 3.5 3.5 3.1 2.7 2.4 2.4 6.0 5.8 6.9 7.8 8.0 7.7 6.6 5.8 5.4 5.3 Table for Chart89TableforChart90 STRENGTHENING THE FEDERAL R&D EFFORT - OBLIGATIONS ($ Millions) 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Defense (including AEC's military related activities) 7807 7337 7541 8256 8292 8367 7995 8062 8645 9390 Space 4236 4857 4963 4756 4298 3821 3639 3089 3127 3023 All other civilian 2199 2431 2940 3073 3543 3295 3697 3992 4675 5406 Table for Chart 41 The Future Space Program (outlays) 1963 MANNED SPACE FLIGHT ($ MILLIONS) APPLICATIONS, SCIENCE & AERONAUTICS ($ MILLIONS) 118 1964 1965 1966 1967 1968 1969 1970 1,516 2,768 3,538 4,210 3,649 3,096 2,781 2,209 612 794 809 853 885 828 737 844 1971 1972 1973 1,885 1,637 1,571 871 992 1,104 Table for Chart 89 Table for Chart 90 National Science Foundation ($ Millions) Percent of Budget Obligations Fiscal Total For Year Obligations Research Program 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 158 175 261 321 354 416 466 465 505 433 76 85 124 157 172 204 235 221 236 225 1970 1971 1972 1973 463 497 601 675 234 317 441 522 HUMAN RESOURCES Outlays For Human Resources ($ Millions) Veterans Education Income Benefits & and Manpower Health Security Services Total Outlays For Human Resources 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 21 22 23 26 26 28 30 29 29 29 30 31 32 32 34 37 42 44 45 1971 8,654 14,463 55,712 9,776 88,606 1972 10,140 17,024 65,225 11,127 103,516 1973 11,281 18,117 69,658 11,745 110,801 119 Table for Chart 89 Table for Chart 90 WELFARE COSTS AFDC PAYMENTS Fiscal Year 1950 1955 1960 1965 1966 1967 1968 1969 1970 1971 1972 EST 1973 EST 1977 EST AFDC Payments ($ Billions) $ PUBLIC ASSISTANCE RECIPIENTS BY PROGRAM (Thousands) Family Status (In thousands) Father Total Children Absent Other .5 .6 1,660 1,691 818 982 842 709 1.0 1.6 1.8 2.6 3.0 3.6 2,322 3,241 3,556 3,942 4,207 5,413 1,493 2,431 2,667 2,957 3,155 4,060 829 810 889 985 1,052 1,353 4.4 5.6 6.7 7.6 12.0 6,000 6,667 7,895 8,500 14,870 4,500 5,001 5,921 6,375 11,153 1,500 1,666 1,974 2,125 3,717 December of Old Age Disabled Total Recipients under AFDC* Blind 943 72 1945 2,056 1950 2,786 69 2,233 98 1955 2,538 241 2,192 104 1960 1961 1962 1963 1964 2,305 2,229 2,183 2,152 2,120 369 389 428 464 509 3,073 3,566 3,789 3,930 4,219 107 103 99 97 96 1965 1966 1967 1968 1969 2,087 2,073 2,073 2,027 2,078 557 588 646 702 803 4,396 4,666 5,309 6,086 7,313 85 84 83 81 80 1970 1971 1972 EST 1973 EST 2,149 2,192 2,240 2,277 850 956 1,102 1,229 8,258 9,315 11,073 12,573 81 82 83 83 — * Includes unemployed fathers and heads of one parent families. 120 Table for Chart 54 Table for Chart 56 INCOME SECURITY OUTLAYS SOARING COSTS OF MEDICAL CARE $ Billion Fiscal Year 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 EST 1973 EST Other Public Assistance Retirement and Social & Services Social Insurance Security 2.5 2.7 3.1 3.3 3.4 3.6 3.9 4.6 5.2 6.5 9.4 12.6 12.6 6.6 5.8 5.6 5.6 5.3 5.2 5.9 6.3 5.7 7.6 11.1 13.3 12.3 12.1 14.0 15.3 16.2 17.0 20.2 21.4 23.2 26.8 29.7 35.2 39.3 44.7 Consumer Price Index [1967 =100] Total 21.2 22.5 24.1 25.1 25.7 29.0 31.2 34.1 37.7 43.8 55.7 65.2 69.7 Calendar Year Medical Care All Items 1967 100.0 100.0 1968 106.1 104.2 1969 113.4 109.8 1970 120.6 116.3 1971V 128.2 121.1 Source: Bureau of Labor Statistics .1/Average of first 11 months 121 Table for Chart 90 Table for Chart 89 Rising Outlays for Medical Purposes Federal Outlays for the Elderly Fiscal Year Total Outlays ($ Billions) ($ Billions) Number of Elderly (Millions) 1967 1968 1969 25.0 29.6 34.1 18.8 19.1 19.5 1970 1971 1972 EST. 1973 EST. 37.6 39.2 44.0 50.0 20.2 20.6 20.8 21.1 122 Fiscal Year In Current Dollars In 1957-59 Dollars 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 $ 0.8 .9 1.1 1.4 1.7 1.7 2.5 6.7 9.7 11.7 0.7 .8 1.0 1.2 1.5 1.4 2.0 4.9 6.7 7.5 1970 1971 1972 1973 13.0 14.5 17.0 18.1 8.0 8.5 Table for Chart30TableforChart31 Medicaid — Medicare Fiscal Year 1969 1970 1971 1972 1973 Medicaid Recipients Outlays $ Billions Millions Medicare Outlays Recipients Millions $ Billions 6.1 6.5 7.4 9.0 10.4 9.0 9.2 10.3 10.9 11.3 2.3 2.7 3.4 4.4 3.4 12.0 15.0 18.2 20.6 23.5 Table for Chart 64 COMBATING THE DRUG PROBLEM Obligations ($ Millions) LAW ENFORCEMENT 1969 1970 1971 1972 1973 20.2 40.2 85.3 164.4 229.0 FUNDS FOR TREATMENT REHABILITATION, EDUCATION TRAINING, RESEARCH 45.5 70.9 132.2 310.1 365.2 Table for Chart 65 FEDERAL NARCOTICS ENFORCEMENT Fiscal Year H e r o i n C o c a i n e T o t a l s - ^ 1969 485 272 757 1970 494 344 838 1971 1,199 788 1,987 1972 2,091 895 2,986 1973 2,320 1,235 3,555 Arrests 1969 8,465 1970 9,000 1971 12,279 1972 15,252 1973 21,498 —^Pounds Seized 124 Table for Chart 67 Table for Chart 68 EDUCATION AND MANPOWER TRAINING CHILD NUTRITION PROGRAMS J / Table for Chart89TableforChart90 FOOD ASSISTANCE ($ Billions) Fiscal Year Fiscal Year 1960 1961 1962 1963 1964 $ -4 .5 .6 .6 .7 1965 1966 1967 1968 1969 .8 .6 .7 .9 1.2 1970 1971 1972 est. 1973 est. 1.6 2.8 3.7 4.1 Outlays ($ Billions) 1962 1963 1964 $ 1.4 1.5 1.8 1965 1966 1967 1968 1969 2.3 4.3 5.9 6.7 6.5 1970 1971 1972 Est. 1973 Est. 7.3 8.7 10.1 11.3 Fiscal Year 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Est. 1973 Est. Expenditures All Children ($ Millions) Expenditures Needy Children ($ Millions) 305 319 368 381 414 498 410 440 542 611 107 687 904 1300 1376 206 398 699 770 -I/lncludes special milk programs and commodities. 125 Table for Chart 89 Table for Chart 90 COLLEGE STUDENT A I D JOB SAFETY AND HEALTH ACTIVITIES-OUTLAYS ($ Millions) EDUCATIONAL OPPORTUNITY GRANTS AND WORK STUDY Fiscal Year No. of Awards (Thousands) Outlays ($ Thousands) 1969 610 186,242 1970 683 314,652 1971 720 352,341 1972 Est. 842 398,742 1973 Est. 1280 670,998 FISCAL YEAR OCCUPATIONAL 1 10.6 11.3 3.2 3.8 17.3 19.4 1970 1971 1972 1973 4.6 15.1 37.1 64.4 17.1 41.1 77.5 91.7 4.3 5.2 12.5 14.5 26.0 61.4 127.1 170.6 VETERANS BENEFITS AND SERVICES ($ Millions) Hospital Medical 126 Education Training 1 Others Total 1967 5,209 1,393 305 195 7,102 1968 4,997 1,472 478 218 7,165 1969 5,528 1,566 701 237 8,032 1970 6,021 1,802 1,015 260 9,098 1971 6,448 2,038 1,659 294 10,439 1972 6,950 2,422 2,240 322 11,934 1973 7,050 2,693 2,437 349 12,529 1 Excludes housing and offsetting receipts TOTAL 3.5 4.3 Table for Chart 72 Income Security RR 1968 1969 1 Includes Fiscal Year 1972 supplemental of 259. 9 million Fiscal Year MINE Table for Chart 73 Table for Chart 75 VETERANS MEDICAL PROGRAMS VETERANS READJUSTMENT BENEFITS Fiscal Year Patients Treated V. A. Hospitals Patients Treated All Facilities Gl BILL Fiscal Year Costs ($ Thousands) Trainees, Nos. Of People 1965 730,511 804,973 1967 251,652 467,883 1966 741,813 825,251 1968 428,747 686,919 1967 750,331 846,396 1969 622,352 925,013 1968 762,426 854,483 1970 938,775 1,210,731 1969 776,314 868,340 1971 1,619,534 1,584,866 1970 787,301 879,062 1972 Est. 2,194,100 1,910,000 1971 818,579 912,342 1973 Est. 2,382,300 2,011,000 1972 Est. 825,625 924,724 1973 Est. 844,203 948,924 Table for Chart 76 FEDERAL OUTLAYS FOR REDUCTION OF CRIME ($ Millions) Fiscal Year Direct Federal Aid to State/Local Total 1969 1970 1971 1972 1973 554 680 938 1269 1398 104 177 415 705 923 658 857 1353 1974 2321 127 Table for Chart 77 FIGHT AGAINST CRIME FISCAL YEAR INDICTMENTS CASES INVOLVING HIGH ECHELON FIGURES CONVICTIONS 1969 813 59 449 29 1970 1,142 109 418 33 1971 2,122 106 679 61 ORGANIZED CRIME STRIKE FORCE 1969 8 1970 13 1971 18 Table for Chart 78 LAW ENFORCEMENT ASSISTANCE GRANTS ($ Millions) Fiscal Year Action and Planning Grants 1969 1970 1971 44 4 204 32 70 1972 1973 128 CASES INVOLVING HIGH ECHELON FIGURES 366 449 530 Discretionary Grants 73 85 Correctional Grants — — 48 98 113 Administration And Other 11 32 45 79 122 Table for Chart 89 Table for Chart 90 Equal Employment Opportunity Commission Activities OUTLAYS FOR CIVIL RIGHTS ACTIVITIES ($ Billions) Fiscal Year 1969 1970 1971 1972 EST 1973 EST Enforcement.!/ .080 .090 .190 .290 .600 Minority^/ Assistance .840 1.000 1.390 1.750 1.960 Fiscal Year Total Investigations Completed 1967 1968 1969 .910 1.100 1.580 2.050 2.560 1970 1971 1972 EST 1973 EST J/Civil Rights enforcement programs guarantee and protect the basic civil rights defined by law. Expenditures ($ Thousands) 3,549 5,368 7,543 4,631 6,202 8,633 5,090 7,321 10,214 14,577 11,627 15,749 21,690 29,500 ^/Minority assistance programs broaden opportunities for economic participation and self determination (includes programs for Indians). Table for Chart 80 OFFICE OF FEDERAL CONTRACT COMPLIANCE Fiscal Year Expenditures ($ Thousands) Compliance Reviews 1968 4,900 8,700 1969 6,000 12,300 1970 10,200 20,700 1971 16,381 22,500 1972 Est. 25,493 36,000 1973 Est. 33,689 52,000 129 Table for Chart30TableforChart31 MAJOR ENVIRONMENTAL QUALITY PROGRAMS ($ Millions) OUTLAYS. Pollution control and abatement Recreation 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 75 93 120 136 162 193 278 341 420 775 1,473 1,813 151 180 207 221 249 305 364 415 413 518 712 720 Table for Chart 87 Table for Chart 86 POLLUTION!/ CONTROL AND ABATEMENT OUTLAYS YEAR $ Millions 1965 1966 1967 1968 1969 136 162 193 253 311 1970 1971 1972 1973 388 701 1287 1541 Vonly EPA programs CONSTRUCTION GRANTS FOR MUNICIPAL SEWAGE TREATMENT PLANT OUTLAYS POPULATION SERVED SECONDARY TREATMENT PLANTS REMEDIAL ACTIONS TO REDUCE POLLUTION FROM FEDERAL FACILITIES Millions No. of People Year Budget Outlays ($ Millions) YEAR $ Millions Year 1969 1970 1971 1972 1973 135 176 478 908 1100 1968 87 1968 25 1969 91 1969 30 1970 98 1970 32 1971 103 1971 74 1972 109 1972 186 1973 115 1973 272 1974 121 1975 128 Table for Chart 89 Table for Chart 90 FEDERAL INVESTMENT 1 IN WATER RESOURCES OUTLAYS. LAND AND WATER CONSERVATION FUND Fiscal Year $ Millions 1967 1968 1969 1,389 1,297 1,174 1970 1971 1972 Est. 1973 Est. 1,098 1,304 1,470 1,770 ^Includes Corps of Eng., Bureau of Reclamation and Soil Conservation Services Estimate Distribution of Obligations Estimate Acres Acquired With Grant Assistance Fiscal Year Urban V 1965 1966 0.2 3.9 .0 10.2 1965 1967 20.9 60.6 1966 50 1968 21.3 50.8 1967 170 1969 18.2 53.6 1968 178 1970 1971 16.7 35.6 32.7 74.8 1969 1970 171 88 1972 70.0 130.0 1971 248 1973 88.0 132.0 1972 1973 Est. 415 500 Rural V Fiscal Year Acres (Thousands) - 0 - Urban means grants made for projects located in cities of 25,000 or more population. 2 J Rural means grants made for projects located anywhere else except cities of 25,000 or more population. 131 Table for Chart 94 Table for Chart 95 TRANSPORTATION RESEARCH AND DEVELOPMENT FEDERAL RESOURCES FOR URBAN TRANSPORTATION Obligations ($ Millions) Obligations ($ Millions) Fiscal Year Mass Transit Urban Highway Airports Total 1968 1970 1971 1972 1973 134 163 401 606 1000 242 294 278 625 645 85 51 170 280 280 461 508 849 1511 1925 Fiscal Year Surface Air Water Total 1966 1969 1973 49 75 334 83 131 260 5 12 48 137 218 642 Table for Chart 98 ASSISTING SMALL BUSINESS No. of Businesses 132 Fiscal Year Business Assistance Minority Business Assistance 1969 14,515 4,654 1970 15,106 6,262 1971 21,490 7,776 1972 Est. 24,797 8,572 1973 Est. 35,879 10,627 Table for Chart89TableforChart90 PERCENTAGE INCREASE OF MINORITY EMPLOYEES IN EACH GRADE, FROM NOV. 1969-MAY 1971 1969 1971 PERCENT CHANGE GS5-8 GS9-11 GS12-13 83,476 61,236 25,462 9,245 2,210 97 26.8% 16.7% 7.9% 4.3% 3.2% 1.8% 82,599 70,866 27,311 11,224 2,953 27.5% 18.4% 8.6% 5.0% 3.9% 2.7% +21.4 +33.6 +55.7 -1.1 +15.7 +7.3 GS14-15 GS16-18 GS1-4 U. S. G O V E R N M E N T 151 P R I N T I N G O F F I C E : 1972 O - 4 5 5 - 8 4 0 133