Full text of Budget Highlights

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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