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THE BUDGET OFTHE UNITED STATES GOVERNMENT FISCAL YEAR 1969 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A NOTE ON THE FORMAT OF THE BUDGET Data relating to the budget for 1969 are published in a group of five documents. The Budget of the United States Government, 1969, is presented in a compact volume containing the Budget Message of the President and other significant data to place before the Congress the President's budgetary recommendations. This volume contains the facts and figures that most users of the budget would normally need or desire. The Budget of the United States Government, 1969-Appendix contains the text of appropriation estimates proposed for the consideration of Congress together with specific supporting information on the various appropriations and funds, as well as supplementary schedules required by law. The Budget of the United States Government, 1969-The District of Columbia contains the estimates for the municipal government of the District of Columbia. A pamphlet type of publication, The Budget in Brief, 1969, is available for those who wish a more concise and less technical presentation than any of the foregoing three official volumes. A second pamphlet type of publication, Special Analyses, Budget of the United States, 1969, contains thirteen special analyses of significant aspects of the Federal budget, including those printed in the compact volume. Budget documents for fiscal year 1969 are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. (Paper covers only.) 1. The Budget of the United States Government, 1969 ($1. 75). 2. The Budget of the United States Government, 1969-Appendix ($6.00). 3. The Budget of the United States Government, 1969-The District of Columbia (to be issued later). 4. The Budget in Brief, 1969 (35 cents). 5. Special Analyses, Budget of the United States, 1969 (70 cents). U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1968 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price $1.75 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TABLE OF CONTENTS Page PART I. THE BUDGET MESSAGE OF THE PRESIDENT__________________________ Budget Message of the President___________________________________________________ PART 2. SUMMARY TABLES____________________________________________________ Explanation of principles used in compiling tables____________________________________ Table I. Budget summary________________________________________________________ Table 2. Budget receipts, outlays, and budget authority____________________________ Table 3. Budget authority and outlays by function__________________________________ Table 4. Budget authority and outlays by agency___________________________________ Table 5. Budget authority requiring current action by Congress_______________________ Table 6. Relation of budget authority to outlays____________________________________ Table 7. Obligations incurred, net_________________________________________________ Table 8. Balances of budget authority_____________________________________________ Table 9. Means of financing and outstanding debt_ ___ ------------------------------Table 10. Employment (full-time permanent) in the executive branch__________________ PART 3. RECEIPTS_______________________________________________________________ Analysis of receipts_______________________________________________________________ Table 11. Budget receipts by source, net___________________________________________ Table 12. Receipts offset against budget authority and outlays_________________________ PART 4. THE FEDERAL PROGRAM BY FUNCTION_____________________________ Analysis of Federal activities by function____________________________________________ National defense_ ___ ____________________ ______________ __ __ _________ ____________ International affairs and finance__________________________________________________ Space research and technology___________________________________________________ Agriculture and agricultural resources_____________________________________________ Natural resources_______________________________________________________________ Commerce and transportation____________________________________________________ Housing and community development______________________________________________ Health, labor, and welfare_______________________________________________________ Education_____________________________________________________________________ Veterans benefits and services____________________________________________________ Interest_______________________________________________________________________ General government____________________________________________________________ Table 13. Budget authority and outlays by function and agency_______________________ PART 5. THE FEDERAL PROGRAM BY AGENCY_______________________________ Explanation of means of funding agency activities____________________________________ Table 14. Analysis of budget authority and outlays by agency ________________________ Legislative Branch______________________________________________________________ The Judiciary__________________________________________________________________ Executive Office of the President_________________________________________________ Funds appropriated to the President_ ______________________________________ - _- _--Department of Agriculture_ ________ _______________ ______ ______ ___________ _______ Department of Commerce __________________________________________ - _- _--------Department of-Defense- Military _____________________________________ - _-- -- --- -Department of Defense-Civil______________ __________________ -- ----- ----- --Department of Health, Education, and Welfare ____________________ --------------- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 5 7 47 48 51 52 53 54 57 58 59 60 61 62 63 64 70 73 77 78 80 91 99 102 107 114 123 133 152 160 168 169 174 191 192 196 196 209 213 219 231 253 268 283 292 4 THE BUDGET FOR FISCAL YEAR 1 9 6 9 PART 5. THE FEDERAL PROGRAM BY AGENCY-Continued Table 14. Analysis of budget authority and outlays by agency-Continued Department of Housing and Urban Development___ ____________ _ Department of the Interior _______________________ . _____ _ Department of Justice __________________________________ _ Department of Labor __________________________________ _ Post Office Department_ __ ______________________ ________ _ Department of State _________________________ _ Department of'Transportation ________ _ Treasury Department_ ____________ _ Atomic Energy Commission ________ _ General Services Administration _____ _ National Aeronautics and Space Administration __ Veterans Administration _______ _ Other independent agencies ________ _ Special allowances_ _______________ ____________ _ Grand total__ _______________________________ __________ _ PART 6. SPECIAL ANALYSES ___________________________________________________ _ A. Comparison of new and old budget concepts __________________________________ _ B. Federal transactions in the national income and product accounts ________________ _ C. Public enterprises, trust funds, agency borrowing, and investment __________________ _ D. Investment, operating, and other budget outlays ________________________________ _ E. Federal credit programs _______________________________________________________ _ F. Civilian employment in the executive branch _____________________________________ _ PART 7. HISTORICAL TABLES __________________________________________________ _ Table 15. Budget receipts, outlays, financing, and debt, 1958-69 ____________________ _ Table 16. Budget receipts by source, 1958-69 _______________________________________ _ Table 17. Budget outlays by function, 1958-69______________________________________ _ Table 18. Federal transactions in the national income and product accounts, 1958-69 ___ _ Table 19. The "Administrative budget" and public debt, 1789--1969 ___________ _ Table 20. Federal sector of the national income and product accounts, 1940-68 _______ _ Table 21. Federal finances and the gross national product, 1940-68 ________ ___________ _ GENERAL NOTES 1. The estimates in the budget cover requirements under existing legislation and under legislation which is proposed for enactment by Congress. 2. Unless otherwise indicated. all references to years in this volume are to fiscal years ending June 30. 3. Details in the tables and charts may not add to the totals because of rounding. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Page 320 332 354 359 367 369 376 385 394 395 402 403 410 459 459 463 464 473 483 493 514 529 537 538 539 540 541 542 543 544 PART I THE BUDGET MESSAGE OF THE PRESIDENT https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 THE GOVERNMENT DOLLAR Fiscal Year 1969 Estimate Where it comes lrom ... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Borrowing Where it goes • Veterans International 3~ BUDGET MESSAGE OF THE PRESIDENT To the Congress of the United States: The budget I send you today reflects a series of difficult choices. They are choices we cannot avoid. How we make the choices will affect our future as a strong, responsible, and compassionate people. We now possess the strongest military capability that any nation has ever had. Domestically, we have enjoyed an unparalleled period of economic advance. Nevertheless, we are confronted by a number of problems which demand our energies and determination. Abroad we face the challenge of an obstinate foe, who is testing our resolve and the worth of our commitment. While we maintain our unremitting search for a just and reasonable peace, we must also .continue a determined defense against aggression. This budget provides the funds needed for that defense, and for the maintenance and improvement of our total defense forces. The costs of that defense-even after a thorough review and screening-remain very large. At home we face equally stubborn foes-poverty, slums and substandard housing, urban blight, polluted air and water, excessively high infant mortality, rising crime rates, and inferior education for too many of our citizens. In recent years, we have come to recognize that these are conquerable ills. We have used our ingenuity to develop means to attack them, and have devoted increasing resources to that effort. "\Ve would be derelict in our responsibilities as a great nation if we shrank from pressing forward toward solutions to these problems. But faced with a costly war abroad and urgent requirements at home, we have had to set priorities. And "priority" is but another word for "choice." "\Ve cannot do everything we would wish to do. And so we must choose carefully among the many competing demands on our resources. After carefully weighing priorities, I am proposing three kinds of actions: • First, I have carefully examined the broad range of defense and civilian needs, and am proposing the selective ewpansion of existing programs or the inauguration of new programs only as necessary to meet those urgent requirements whose fulfillment we cannot delay. • Second, I am proposing delays and deferments in existing programs, wherever this can be done without sacrificing vital national objectives. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 8 THE BUDGET FOR FISCAL YEAR 196 9 • Third, I am proposing bMic changes, reforms, or reductions designed to lower the budgetary cost of a number of Federal programs which, in their present form, no longer effectively meet the needs of today. Federal programs bring important benefits to all segments of the Nation. This is why they were proposed and enacted in the first place. Setting priorities among them, proposing reductions in some places and fundamental reforms in others, is a difficult and a painful task. But it is also a duty. I ask the Congress and the American people to help me carry out that duty. Even after a rigorous screening of priorities, howeiver, the cost of meeting our most pressing defense and civilian requirements cannot be responsibly financed without a temporary tax increase. I requested such an increase a year ago. On the basis of changed fiscal conditions, I revised my request in a special message to the Congress last August. I •am renewing that request now. There is no question that as a nation we are strong enough, we are intelligent enough, we are productive enough to carry out our responsibilities and take advantage of our opportunities. Our ability to act as a great nation is not at issue. It is our will that is being tested. Are we willing to tax our incomes an additional penny on the dollar to finance the cost of Vietnam responsibly~ Are we willing to take the necessary steps to preserve a stable economy at home and the soundness of the dollar abroad? One way or the other we will be taxed. We can choose to accept the arbitrary and capricious tax levied by inflation, and high interest rates, and the likelihood of a deteriorating balance of payments, and the threat of an economic bust at the end of the boom. Or, we can choose the path of responsibility. We can adopt a reasoned and moderate approach to our fiscal needs. We can apportion the fiscal burden equitably and rationally through the tax measures I am proposmg. The question, in short, is whether we can match our will and determination to our responsibilities and our capacity. BUDGET SUMMARY I am presenting my 1969 budget under the new unified budget concept unanimously recommended by the bipartisan Commission on Budget Concepts I appointed last year. Among the many changes recommended by the Commission and incorporated in this year's budget presentation, two stand out: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 9 • First, the total budget includes the receipts and expenditures of the trust funds, which were excluded from the traditional "administrative budget" concept. Because some $47 billion of trust funds are included in the new budget concept, its totals are much larger than those in the old administrative budget. • Second, when the Federal Government makes a repayable loan, the effect on the economy is very different than when it spends money for a missile, a dam, or a grant program. A loan is an exchange of financial assets. Unlike other outlays, it does not directly add to the income of the recipient. Consequently, the Commission on Budget Concepts recommended that the budget identify and distinguish "expenditures" from "lending," and, for purposes of evaluating economic impact, show a separate calcul ation of the surplus or deficit based on expenditure totals alone. My budget presentation follows this significant recommendation. '.Dhis budget carries a special section showing the relationship between the new and ,the old concepts. The 1969 budget proposes outlays of $186.1 billion, of which: • $182.8 billion is spending. • $3.3 billion is net lending. Including the effects of the tax increase I am proposing, revenues in fiscal year 1969 are estimated at $178.1 billion. On the new budget basis, the overall deficit of $8.0 billion anticipated in 1969 compares with an estimated deficit of $19.8 billion in 1968. Thus, the reduction in the deficit is estimated to be $11.8 billion. A better measure of the direct impact of the Federal budget on the Nation's income and output is given by the expenditwre aacownt ( which excludes the lending programs of the Federal Government). The expenditure deficit in fiscal year 1969 is estimated at $4.7 billion, a reduction of $9.3 billion from 1968. Between 1968 and 1969 the normal growth in revenues-associated with rising incomes and business activity-is expected to be $11.5 billion. This more than covers the rise in budget outlays between the two years-estimated at $10.4 billion. Consequently, all of the revenues from the proposed surcharge and the speedup in corporate tax payments will be applied towards reducing the budget deficit. To carry forward the proposals in the budget, I am requesting ne.w budget authority of $201.7 billion for 1969, of which $141.5 billion will have to be provided through appropriation bills or similar action during the current session of Congress. The remainder will become available under existing law without current congressional action, including the social insurance trust funds and interest on the public debt. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 10 THE BUDGET FOR FISCAL YEAR 19 6 9 SUMMARY OF THE BUDGET AND FINANCIAL PLAN [Fiscal years, In billion1) Description 1967 1968 1969 actual estimate estimate Budget authority (largely appropriations) : Previously enacted _______________________________________ --------- 58.7 $125.1 3.3 69.9 -11.5 -11.8 -12.9 182.6 186.5 201.7 Expenditures (excludes net lending) ______________________ 149.6 153.2 155.8 169.9 178.1 182.8 Expenditure deficit (-) ______________________________ -3.6 -14.0 -4.7 Loan disbursements ____________________________________ Loan repayments ______________________________________ 17.8 -12.6 20.9 -15.1 20.4 -17.1 Net lending _________________________________________ 5.2 5.8 3.3 Total budget: Receipts ______________________________________________ Outlays (expenditures and net lending) ___________________ 149.6 158.4 155.8 175.6 178.1 186.1 Budget deficit (-) ___________________________________ -8.8 -19.8 -8.0 Borrowing from the public ________________________________ Reduction of cash balances, etc ____________________________ 3.6 5.3 20.8 -1.0 8.0 Total, budget financing _______________________________ 8.8 19.8 8.0 341. 3 269.2 370.0 290.0 387.2 298.0 Proposed for current action by Congress ____________________ Becoming available without current action by Congress ________ Deductions for interfund and intragovernmental trll!llaC:,. tions and applicable receipts _____________________________ Total, budget authority ___ -.- __________________________ $135.4 ---------- $141.5 73.1 Receipts, expenditures, and net lending: Expenditure account: Receipts ______________________________________________ Loan account: Budget financing: Outstanding debt, end of year: Gross amount outstanding __ -------------------Held by the public _____________________________ * 1966 actual 329.5 265.6 *Leu than $SO million, FISCAL PROGRAM FOR 1969 Economic background.-The overall fiscal policy for 1969 has been designed to achieve four major goals: • Continuation of sustained growth in jobs and real income for the American people. • Lessening of inflationary pressures. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 11 • Improvement in the U.S. balance of payments. • Reduction in Federal borrowing, aimed at reducing the upward pressure on interest rates. In March, the American economy will achieve a new milestone as it enters its eighth year of sustained expansion. No prior period in our history has been marked by an expansion of such long duration. Each month that we continue to move ahead creates its own new record. And this record translates into jobs, incomes, and rising living standards for the American people. During the past 4 years, the continued expansion has resulted in: • the creation of 7 and a half million new jobs; • an increase of 21 % in national output; • a rise of 18.8% in per capita income after taxes and after adjustment for price change; • a rise of 12% in output per man-hour in the private sector of the economy; • a decline of 6½ million in the number of people living in poverty; and • a rate of unemployment which, for the past 2 years, has averaged less than 4% of the labor force and now stands at 3.7%. Many factors contributed to this unparalleled achievement. But chief among them was the flexible use of fiscal policy-particularly the tax reductions and reforms of 1962, 1964, and 1965. A lagging economy ,vas set in motion and sustained in expansion through these actions. Between calendar years 1961 and 1965, economic growth was accompanied by a remarkable degree of price stability. ,vholesale industrial prices rose by about one-half of 1 % per year. The 'annual increase in consumer prices was about l 113 % . Since 1965, however, our economic achievements have been marred by an accelerated rate of price increases. Although these increases have not been as great as those in many other industrial countries, the consumer price index in the past 2 years has risen at an annual rate of 2.9%, and wholesale industrial prices at an annual rate of 1.8%. Interest rates on loans and securities of all types have advanced sharply, first in 1966, and then after a short period of decline, again in 1967. Our balance of payments deficit-which had been reduced from $3.9 billion in 1960 to $1.4 billion in 1966-took a sharp turn for the worse in 1967. The problems of rising prices and interest rates, and a worsening balance of payments, arise from many causes. And their correction will require a variety of measures. But central to any attack upon them is a fiscal policy which-through a combination of expenditure control and tax increase-sharply reduces the inappropriate stimulus of a large Federal budget deficit in today's vigorous economy. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12 THE BUDGET FOR FISCAL YEAR 19 6 9 Percent 30- Budget Outlays as a Percent of Gross National Product 21 10 1959 Fiscal 1960 1961 1962 1963 1964 1965 1966 1967 1968 Yoon 1969 Estimate We are now spending approximately $25 billion annually to support our efforts in Vietnam-in the 4 fiscal years, 1966 through 1969 combined, we will have spent more than $75 billion. Our annual expenditure for this purpose amounts to about 3% of gross national product. Other outlays, exclusive of social insurance trust funds, have been d eclining as a share of the Nation's income and output in recent years. It is not the rise in regular budget outlays which requires a tax increase, but the cost of Vietnam. BUDGET OlTfLAYS AS A PERCENTAGE OF GROSS NATIONAL PRODUCT [Fiscal years] Average 1965 1968 1969 1958-1960 actual estimate estimate actual Total outlays: Vietnam _____ ------ --_--- ----------- ------ -- -- --- ------Social insurance trust funds_ __ ___ _______________ 3.0% Other outlays____ ______ ___ ____________________ 16. 0 •Leu than 0.05%. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * 3.4% 14.6 3. 1% 3.0% 4. 2 4.4 14. 2 13.9 THE BUDGET MESSAGE OF THE PRESIDENT 13 The tax increase I am requesting is in the same form as I he one I recommended last year-a temporary 10% surcharge on individual and corporation income taxes. I again strongly urge its early approval by the Congress, with an effective date of January 1, 1968, for corporations and April 1, 1968, for individuals. With enactment of the tax measures proposed in this budget-the surcharge, extension of excises, and the acceleration of corporate tax collections-the total budget deficit can be cut by more than half between 1968 and 1969. Without the tax measures, the deficit in 1969 would remain close to $20 billion for the second year in a row. In an economy already moving strongly upward, such a deficit in 1969 would clearly ·add sharply to inflationary pressures. Inflation robs the purchasing power of those living on fixed incomes. It is a regressive tax which strikes hardest at those least able to afford it-the poor and the elderly. By raising the price at which we must sell in foreign markets, inflation also causes our export industries to suffer and our imports to increase more rapidly. Perhaps even more importantly, failure to take decisive fiscal action to reduce our budget deficit would raise strong doubts throughout the world about America's willingness to keep its financial house in order. Finally, unless we take action to reduce the budget deficit significantly, Federal borrowing is likely to be so large as to drive up interest rates and reduce the availability of credit, especially to home buyers, small businessmen, and State and local governments. Revenues.-The $178.1 billion in estimated revenues for fiscal year 1969 includes $12.9 billion from the tax measures I am proposingthe temporary income tax surcharge, the extension of present excise tax rates, and the speedup in corporation tax payments. As I have repeatedly noted, the temporary surcharge represents a modest addition to our current tax bills. It would spread most equitably and fairly the cost of the oommitments ,ve must meet. It would exempt entirely from increased taxation about 17 million Americans whose low incomes place them within the first two tax brackets. It would not be haphazard and capricious like the tax of inflation. In terms of the income of individuals subject to the surcharge, the tax increase would average about one additional penny on the dollar. And, unlike inflation, it can be removed promptly if no longer warranted by our unusual outlays in Southeast Asia. I am also proposing that the telephone excise tax of 10% and the automobile excise tax of 7% be extended at these rates beyond April https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 THE BUDGET FOR FISCAL YEAR 196 9 BUDGET RECEIPTS (Fiscal yean. In billion•I Source 1967 actual 1968 1969 estimate estimate Individual income taxes ___________________________________ _ Corporation income taxes _________________________________ _ Excise taxes _____________________________________________ _ Employment taxes _______________________________________ _ All other receipts ________________________________________ _ $61.5 34.0 13.7 13.8 14.7 27.8 12.6 29.7 34.2 13.3 14.1 TotaL ___________________________________ - ________ - 149.6 155.8 178.1 149.6 I52.8 165.0 Tu measure,____________________________________________ _____ _____ 3.0 12.9 .3 Under existing law_________________________________________ Under proposed legislation: $67.7 31.3 User charges ____________________________________________ ___________________ _ $80.9 34.3 1, 1968, instead of dropping to 1 % and 2%, respectively, as provided in present law. In addition, the Congress should enact the proposals made last year to modify the provisions for current payment of the corporate income tax so that they correspond to the current payment provisions applicable to individuals. An estimated $4.4 billion of the increase in revenues in 1969 will come from employment taxes which finance social security and other trust fund programs. Under the recent amendments to the Social Security Act, the annual wages on which each employee's social security taxes are paid rose from $6,600 to $7,800 as of January 1, 1968, and the combined employer-employee payroll tax will increase from 8.8% to 9.6% on January 1, 1969. I am also recommending a number of new and increased user charges for programs in which the services provided by the Federal Government yield direct benefits to specific individuals and businesses. These charges-notably in the field of transportation-will, and should, shift the burden of financing from the general taxpayer to those who benefit directly, and make the provision of these services dependent upon the willingness of the user to pay for them. Outlays.-The $186.1 billion in total budget outlays for 1969 represents an increase of $10.4 billion from the current fiscal year. Almost all of this increase is accounted for by rising outlays for defense and for relatively fixed charges under present laws. Of the total $10.4 billion increase: • $3.3 billion is for national defense; • $4.2 billion is for the Federal Government's social insurance programs ( chiefly social security and Medicare) ; https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 THE BUDGET MESSAGE OF THE PRESIDENT • $1.6 billion is for the second step of the civilian and military pay increase enacted last year; and • $1.3 billion is for other relatively fixed charges ( interest, public assistance, veterans pensions, etc.). CONTROLLABILITY OF BUDGET OlITLAYS (Fiscal years. In billions) Type of controllability National defense ________________________________ Relatively uncontrollable civilian programs: Open-ended programs and fixed costs: Social security, Medicare, and other social insurance trust funds _______________________ Interest ____________________________________ 1967 1968 1969 actual estimate estimate $70.1 Change, 1968 to 1969 $76. 5 $79.8 +$3.3 34.3 13.5 Civilian and military pay increase _____________ ---------- ---------Veterans pensions, compensation, and insurance_ 4.9 5. I Public assistance grants ______________________ 5.2 4.2 38.5 14.4 I. 6 5.2 +4.2 +.9 +I. 6 +. I 5.7 +.5 +. I 30.3 12. 5 Farm price supports (Commodity Credit Corporation) ________________________________ Postal operations ____________________________ Legislative and judiciary _____________________ Other ______________________________________ 1.7 .8 .3 2.4 2.8 .7 .4 2.7 2.9 .3 .4 2.8 +.I Subtotal, relatively uncontrollable civilian programs _______________________________ 57.1 64. 7 71.8 +7.1 Relatively controllable civilian programs, including outlays from prior year contracts and obligations __ 35.Z 39. 0 39.5 +.5 Undistributed intragovernmental payments ( - ) ____ -4.0 -4.6 -5.0 -.5 Total budget outlays _______________________ 158. 4 175.6 186.1 +10.4 -.4 * • Leas than $50 million, Outlays in relatively controllable civilian programs are estimated to rise by $0.5 billion from 1968 to 1969. This rise is more than accounted for by an increase of $1½ to $2 billion in payments on prior contracts and obligations. On the other hand, budget outlays by the Federal National Mortgage Association trust fund are scheduled to decline. All other outlays in relatively controllable civilian programs will be essentially unchanged from 1968 to 1969. Within this relatively stable total, however, there are a large number of individual increases and decreases. Tight budgeting does not mean an indiscriminate "hold-the-line" on all programs. Rather, it https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16 THE BUDGET FOR FISCAL YEAR 196 9 implies a rigorous application of priorities, providing increases where needs are urgent and returns high, slowing the growth of programs with less urgent priority, and reducing outlays where requirements have decreased or programs have become outmoded. In the application of this priority system, my budget provides selective increases for a number of urgent domestic programs, particularly: • manpower training; • Model Cities; • programs to control the rising crime rate; • family planning and health care for mothers and infants; • air and water pollution control; and • research in better methods of education, and assistance m increasing the supply of qualified teachers. These and the other selected programs for which I am recommending increases, respond to the most urgent needs of our Nation todaythe basic problems of poverty, crime, and the quality of our environment. I urge the Congress to give them the most careful consideration. We can ignore these problems only at grave risk of harm to the fabric of our society. BUDGET OlITLA YS (Fiscal years. In billions] Description 1967 1968 1969 actual estimate estimate Change. 1968 to 1969 National defense _______________________________ _ Social security, Medicare, and other social insurance trust funds ___________________________________ _ Other major social programs: Education ___________________________________ _ Health (excluding Medicare) __________________ _ Labor and manpower_ ________________________ _ Economic opportunity programs ________________ _ Welfare _____________________________________ _ $70.1 $76.5 $79.8 +$3.3 30.3 34.3 38.5 +4.2 4.0 3.4 4.5 4.4 4.7 4.9 +.5 I. I 1.5 1.3 I. 9 3.9 4.6 Urban community development, and low and moderate income housing ___________________ _ I. I 2.0 Regional development _________________________ _ .2 .4 Interest_ ______________________________________ _ 12.5 13.5 Civilian and military pay increase _________________ ---------- _________ _ All other_______________________________________ 34.2 36.9 Undistributed intragovernmental payments ( - ) ____ -4. 0 -4. 6 Total budget outlays _____________________ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 158.4 175.6 1.5 2.0 4.9 2.3 +.2 +.2 +.I +.3 +.4 .5 +.I 14.4 1.6 36.0 -5.0 +.9 +1.6 186.1 +J0.4 -.8 -.5 THE BUDGET MESSAGE OI<' THE PRESIDEN'l' 17 At the same time as I propose selected increases, I have taken other steps to hold budget totals to the minimum consistent with the national security and well-being. My budget provides for: • the (}11,fbar:k of controllable programs in 1968 which the Congress enacted upon my recommendation; • reductions, deferrals, and pogram reforms, which would reduce program levels in a variety of Federal activities by $2.9 billion in 1969; • a determined effort to slow the pace of f ederalvy financed construction programs as much as possible consistent with orderly government and sound practices; • a careful re1Jiew of all budget requests to insure that increases are recommended only in case of high priority programs. Budget authority.-Before Federal agencies can spend or lend funds, the Congress must enact authority for them to incur financial obligations and make the payments required to meet these obligations. Most of this authority is provided in the form of appropriations. For fiscal year 1969, a total of $201.7 billion of such authority is proposed: • New obligational authority of $197.1 billion for expenditure account programs, and • Lending authority of $4.6 billion for loan account programs. Not all of this authority will be fully obligated or spent in 1969; some of it is needed to provide the authority for major procurement, construction, loan contracts, and other large-scale activities in which obligations made in one year result in outlays over a period of years. Of the total budget authority recommended for 1969, the Congress would have to act. on $141.5 billion during the current session. The remaining authority will become available under existing law without further action by the Congress. Such authority consists chiefly of trust fund programs (under which the revenues of the special taxes and other specific receipts financing the programs are automatically appropriated) and interest on the public debt. The authority for 1969 which the Congress is being asked to enact is $13.1 billion greater than the current estimate for 1968, but only $6.1 billion higher than the amount enacted 2 years ago. Current action by the Congress to provide budget authority varies widely from year to year because in several large programs-highways, TVA electric power construction, and the special assistance functions of the Department of Housing and Urban Development, for example-budget authority is 300-000 0--68-2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 THE BUDGET FOR FISCAL YEAR 196 9 BUDGET AUTHORITY [Fiscal years. In billions] Description 1967 actual 1968 1969 catimatc estimate Available through current action by the Congreaa: Previously enacted_______________________________________ $135.4 $125.1 --------Proposed in this budget__ ________________________________ ----------__________ $138.4 To be requested separately: For supplemental requirements under present law__ ________ __________ 3. 0 * Upon enactment of proposed legislation___________________ __________ .2 .9 Allowances: Civilian and military pay increase ___________________________________________ _ 1.6 Contingencies_________________________________________ __ ________ .2 .6 135.4 128.4 141.5 lnterfund and intragovernmental transactions (-) ____________ _ Applicable receipts from the public (-) _____________________ _ 41.7 13.4 3.6 -6.6 -4.9 50.1 14.A 5.4 -7.4 -4.4 54.0 15.2 3.9 -8.2 -4.6 Total budget authority ______________________________ _ 182.6 186.5 201.7 Subtotal, available through curreiit action by the Congress_ Available without current action by the Congress (permanent authorizations): Trust funds ____________________________________________ _ Interest on the public debt. ______________________________ _ Other __________________________________________________ _ *Leu than $50 million. provided in 1 year to cover a number of succeeding years. In fiscal year 1968, there is a considerable decline in the amount of such multiyear authority. Of the $15.2 billion increase in total budget authority in 1969, $6.2 billion is for the Department of Defense and military assistance program, $3.9 billion is available for trust funds, $0.9 billion is for interest on the public debt, and $1.6 billion for the military and civilan pay raises effective July 1, 1968. The remaining increase in budget authority totals $2.6 billion. Major increases in this remainder are: • $586 million for public assistance and payments to the Medicare trust fund. • $597 million for foreign economic assistance, to meet minimal development needs, primarily in Latin America and Asia, following the reductions in this program last year. • $442 million for Federal manpower activities of civilian agencies. • $163 million for the Office of Economic Opportunity ( apart from its manpower activities). • $245 million for the Atomic Energy Commission, largely associated with the new Sentinel antiballistic missile system. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSA.GE OF THE PRESIDENT 19 • $688 million for the Model Cities program. Major decreases from 1968 to 1969 include: • $401 million for construction grant programs of the Office of Education. • $254 million for the Post Office, reflecting the postal raite increase enacted in 1967. • $204 million for health construction grants. • $218 million for the National Aeronautics and Space Administration, because requirements for the Apollo program are declining. • $81 million for certain Corps of Engineers construction activities. This budget includes for fiscal year 1968 $3.4 billion in supplemental appropriations recommended "for enactment this year, along with the related outlays. Of this total, $1.1 billion represents the current year's cost of the pay raise for Federal personnel, over and above amounts the agencies have been able to absorb. The other major supplemental requirement is $1.6 billion for the Department of Health, Education, and Welfare, largely for welfare payments and medical assistance, and for the Government's payments to the health insurance trust fund. BUDGET PROGRAM REDUCTIONS AND REFORMS In this budget I am recommending two kinds of measures to reduce Federal outlays. First, I am proposing certain reductions which primarily reflect the stringent nature of the 1969 budget. I am, for example, recommending a temporary reduct.ion in certain construction programs, not because they have outlived their usefulness, but because a deferral of this construction is appropriate in a period when we must relieve inflationary pressures by reducing the deficit. These reductions reflect a cut in existing program levels in terms of obligations, commitments, or contracts, which can be accomplished without substantially altering the character of the affected program. Such reductions are estimated to bring 1969 programs some $1.6 billion below 1968 appropriated levels. Seeond, I am recommending long-run reforms and modifications to eliminate certain programs or make them more effective. As the economic and social profile of the Nation changes, Federal programs must also change-or run the risk of being inappropriate, ineffective, and irrelevant. Under the reform proposals, the program level of older outmoded activities would be reduced, or, in certain cases, charges for benefits would be imposed or substantially increased. These proposed reforms are estimated to reduce the 1969 budgetary burden for these programs https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 THE BUDGET FOR FISCAL YEAR 19 6 9 by $1.2 billion below the prior year's levels. The corresponding amount for 1970 is estimated at $1.4 billion. Change will not be easy. Many revisions will require legislation, for which I seek congressional support and approval. Many of these programs have lived long lives and recipients have become accustomed to enjoying their benefits. Nevertheless, today's priorities demand change-no matter how difficult it may be. The expenditure savings from these reductions and reforms will not all occur in 1969, but will be spread over several years. These proposals, shown in the accompanying table, will touch nearly every major agency in the Federal Government. BUDGET PROGRAM REDUCTIONS AND REFORMS (Fi1cal year■ • In million ■] Cut• below 1968 Agency and program program level, a1 funded 1969 BUDGET REDUCTIONS Agriculture: Farm operating loans _____________________________________________ _ Rural electrification loans ________________________________________ _ Forest roads and trails ____________________________________________ _ Sewer and water loans ___________________________________________ _ Water and aewer grants ___________________________________________ _ Watershed protection program __________________________________ -·· Flood prevention program ________________________________________ _ Agricultural research _____________________________________________ _ Forest protection and utilization ______________________ . ____________ _ Great plains conaervation program_________________________________ _ Other __________________________________________________________ _ -$50 -45 -29 -22 -3 -17 -11 -15 -2 -2 Subtotal, Agriculture _________________________________________ _ -197 Commerce: Ship construction ___________________________ ·-------- ___________ _ Research-Maritime Administration _______________________________ _ -156 -7 -1 Subtotal, Commerce _________________________________________ _ -163 Health, Education, and WeUare: College facility grants ____________________________________________ _ Books, equipment, guidance, and testing grants _____________________ _ Health research facilities construction ______________________________ _ School aid to federally impacted areas ______________________________ _ Medical library construction grants ________________________________ _ -120 Subtotal, Health, Education, and Welfare ______________________ _ -400 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -224 -29 -17 -10 21 THE BUDGET MESSAGE OF THE PRESIDENT BUDGET PROGRAM REDUCTIONS AND REFORMS-Continued (Fiocal year■, In million ■) Agency and program Cuta below 1968 program level, a1 funded 1969 BUDGET REDUCTIONS-Continued Housing and Urban Development: Grants for basic water and sewer facilities __________________________ _ Public facility loans ______________________________________________ _ Special assistance for market rate mortgages-Federal National Mortgage Auociation_______________________________________________ _ Subtotal, Housing and Urban DevdopmenL ___________________ _ Interior: Reclamation program ____________________________________________ _ Indian construction programs _____________________________________ Road programs __________________________________________________ _ Sport fiaheries construction _______________________________________ _ Commercial fisheries construction _________________________________ - -$25 -10 -27 -62 -27 -22 -6 -5 -1 Subtotal, Interior____________________________________________ _ -61 Justice: Elimination of new prison construction _______________________ _ -1 State: Educational exchange ______________________________________ -- -1 Atomic Energy Commission: Production of special nuclear materials ----------------------------Nuclear rocket program __________________________________________ _ Space dectric power______________________________________________ _ Civilian application of nuclear explosives (Plowshare) _______________ _ -12 -10 -8 -6 Subtotal, Atomic Energy Commission __________________________ _ -36 General Services Administration: Construction _______________________ _ -143 National Aeronautics and Space Administration: Manned and unmanned exploration and other programs _________________________ - ----- ---- - -447 National Science Foundation: Institutional science programs ____ --------- -31 Small Business Administration: Business loans _______________________________ ----- ------- ----- ---Economic opportunity loans __________________________ ---------- --Investment company loans _________________________________ - _-- --- -40 -25 -25 Subtotal, Small Business Administration________________________ _ -90 Total, budget reductions ________________________________ -- ---- -1,632 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22 THE BUDGET FOR FISCAL YEAR 19 6 9 BUDGET PROGRAM REDUCTIONS AND REFORMS-Continued (Fiacal yean. In millions! 1969 1970 PROGRAM REFORMS ARriculture: Aiiricultural conservation program-limit to practices with long-term benefits ___________ - __________________________________________ _ -$120 -$120 Health, Education, and Welfare: School aid to federally impacted areastie payments more closely to Federal burden _________________________ ----------- -100 Housing and Urban Development: Private housing-place greater reliance on the private market (requiring change in statutory interest rate ceilings) ________________________________________________ -- - - - - - - - -669 -669 to recover expenses under Longshoremen and Harbor Workers Compensation Act_ ___________________________ _ -3 -3 Transportation: Airway services-increase taxes on users ____________________________ _ Waterways-impose tax on users __________________________________ _ -40 -7 -.5.5 -14 Highway trucking-increase tax on diesel fuels and apply graduated use tax by weight_ ____________________________________________ _ -239 -2.50 Subtotal, Transportation _____________________________________ _ -286 -319 -.54 -46 -.54 -46 -7 -7 Subtotal, Veterans Administration _____________________________ _ -107 -107 Small Business Administration: Disaster loans-employ more equitable and rigorous criteria _____________________________________________ _ -.50 -.50 Labor: Institute user charges Veterans Administration: Compensation-eliminate statutory payments for cases of arrested tuberculosis ___________________________________________ --- - - - - - Burial benefits-eliminate duplication with social security ___________ _ Pensions-count railroad retirement benefits as part of income in setting amount of veterans pension _____________________________________ _ Water Resources Projects of several agencies-raise the interest rate used for evaluating projects ___________________________________________ _ l (1) Total, program reforms _______________________________________ _ -1,23.5 Grand total, budget program reductions and reforms, 1969_________ _ -2,867 (1) -1,368 While no immediate savings are realized, the long-term effect could be substantial. There have been suggestions for a long-range study of Federal programs, evaluating their effectiveness and proposing reforms. Clearly, more study of potential program reforms is needed. My proposals this year represent a first step on which we can and should act now. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 THE BUDGET MESSAGE OF THE PRESIDENT Throughout the years, it has been easier to discuss the need to restructure older Government programs, than actually to change them. I urge the Congress to take prompt and favorable action in support of these proposals to cull out lower priority programs. FEDERAL DEBT On the basis of all revenues and outlays included in the new unified budget, the Federal debt held by the public will increase to an estimated $298 billion on Juno 30, 1969, from $290 billion at the end of fiscal year 1968. A substantial amount of Federal debt is not held by the public but by Government agencies and trust funds. Federal gross debt-which is the sum of the amount held by the public and within the Government-is estimated at $387.2 billion at the end of fiscal year 1969. During the past year the Congress substantially revised the permanent statutory debt limit, which applies to concepts used in previous budgets. It also provided for temporary further increases beginning with the fiscal year 1969, to take care of seasonal fluctuations. On the basis of the present fiscal outlook, and assuming enactment of the new tax measures which I have proposed, it should not be necessary to seek revision of the limit during this session of the Congress. If and when it becomes necessary to revise the statutory limit, some modifications in the scope and nature of the limit may be appropriate, in line with the recommendations of the Commission on Budget Concepts. FEDERAL DEBT AND BUDGET FINANCING [ End of 61cal years, In billions! Description Federal debt held by the public _____________________________ 1967 1968 1969 actual e1timate estimate Plus: Debt held by Federal agencies and trust funds ___________ $269.2 72.2 $290.0 80.0 $298.0 89.2 Equals: Gross Federal debt__ _______________________________ 341. 3 370.0 387.2 322.9 18.5 344.1 356.7 30.5 Borrowing from the public ________________________________ Reduction of cash balances, etc ____________________________ 3.6 5.3 20.8 -1.0 Total budget financing _______________________________ 8.8 19.8 Total budget deficit__ ________________________________ -8.8 -19.8 Of which: Treasury debt _________________________________________ Other agency debt_ ____________________________________ 25.9 Budget financing: • Leu than $SO million, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -- 8.0 ~ 0 24 THE BUDGET FOR FISCAL YEAR 196 9 Under the revised concepts presented in this budget, the Federal debt includes a wider range of Federal securities than the direct obligations of the Treasury Department, which have formerly been regarded as the public debt. Under the new concept, the debt includes: • Direct obligations of the Treasury ; • Securities issued by other F ederal agencies; and • Certificates of participation in assets of F ederal agencies issued by the Export-Import Bank and by the Federal National Mortgage Association for itself and as trustee for several other agencies. In total, agency obligations other than Treasury securities will amount to an estimated $25.9 billion on June 30, 1968, and will increase to $30.5 billion by June 30, 1969. Increases in borrowing from the public represent the primary means of financing the budget deficit. Lesser amounts are av-ail:able from time to time by drawing down the Treasury's cash balances or from a portion of the seigniorage on the Government's minting operations. Percent 125 - 122 19-45 Federal Debt Held by The Public as a Percent of Gross National Product 1950 1955 1960 Fiscal Years 1965 1969 Estimate PROGRAM HIGHLIGHTS The budget covers all the expenses which can be reasonably anticipated in the coming year. To assure that the total takes into account the inevitable uncertainties in estimating for a future period, $2.2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 THE BUDGET MESSAGE OF THE PRESIDENT billion in new obligational authority and $2.0 billion in expenditures have been included as special allowances for 1969. These allowances provide for: ( 1) civilian and military pay increases required by law, and (2) unforeseen contingencies and the possible costs of new programs for ·which definite estimates cannot be made at the present time. The Government's program and budget for 1969 are outlined briefly m the table and sections that follow. BUDGET OUTLAYS [Fiscal years. In billions) Function 1967 1968 1969 actual eati mate estimate Expenditures: National defense ________________________________________ _ $70.1 (50.0) 4.1 (3.7) Excluding special Vietnam ______________________________ _ International affairs and finance __________________________ _ Excluding special Vietnam ______________________________ _ Space research and technology ____________________________ _ 5.4 $76.5 (52.0) 4.3 (3.9) 4.8 4.4 2.4 7.7 Agriculture and agricultural resources _____________________ _ Natural resources _______________________________________ _ Commerce and transportation ____________________________ _ _ Housing and community development_ ____________________ _ 3.2 2.1 7.3 .6 .7 Health, labor, and welfare_------------------------------Education _____________________________________________ _ Veterans benefits and services ____________________________ _ Interest_ ___________________________ - _- - - - __ - - - - - - - - - - - General government _____________________________________ _ 39.5 3.6 6.4 12.5 46.4 4.2 6.8 2.S 2.6 13.5 $79.8 (54.0) 4.5 (4.0) 4.6 4.5 2.5 8.0 1.4 51.9 4.4 7.1 14.4 2.8 Allowances: .1 1.6 .4 -1.9 -2.7 -2.0 -3.0 153.2 (132.7) 169.9 (144. 9) 182.8 (156.5) .5 1.7 .7 .9 3.3 .9 .7 1.1 1.4 .1 5.2 5.8 3.3 Civilian and military pay increase ________________________ - - - - - - - - - - - - - - - - - - - Contingencies_---------------------------------------- ---------Undistributed intragovernmental payments: -1.7 Government contribution for employee retirement ( - ) ____ _ -2.3 Interest received by trust funds(-) ____________________ _ Total expenditures __________________________________ _ Total expenditures, excluding special Vietnam __________ _ Net Lending: International affairs and finance ___________________ - _- - - - - Agriculture and agricultural resources ________ - _- - - - - - - - - - - Housing and community development_ _________ - _- - - - - - - - - All other _____________ - _-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1.2 1.7 Total net lending _______________________________ - ---- 1===1,== Total outlays __________ - _ - _ ----------------------- Total outlays, excluding special Vietnam _______________ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 158.4 (137.9) 175.6 (150.6) 186.1 (159.8) 26 THE BUDGET FOR FISCAL YEAR 196 9 National defense.-In a world of shrinking distances, our own peace and security is bound up with the destiny of other nations. The defense budget for Hl69 reflects our resolve to preserve the independence of Vietnam ,and to provide the forces essential for safeguarding our national security and international obligations. Since 1961, excluding those forces added because of operations in Vietnam, we have increased our military capability in every essential category. Our accomplishments include: • A 45% increase in the number of combat-assigned Army divisions-from 11 to 16; • A 62% increase in the funds for general ship construction and conversion to modernize the fleet ; • A 200% increase in the number of guided-missile surface ships; • A 20% increase in the number of Air Force tactical fighter and attack aircraft, and a 100% increase in the total payload capability of all fighter and attack aircraft-Air Force, Navy, and Marine Corps; • A 400% increase in our fixed-wing airlift capability-an increase which will reach 1,000% in the 1970's with the introduction of the mammoth C-5A transport; and • A 185% increase in the number of nuclear weapons in the strategic alert forces. While we stand ready to enter meaningful discussions with the Soviet Union on the limitaition of strrutegic forces, it is necessary to assure that our defense capabilities remain equal to any challenge or threat. I am therefore recommending funds in this budget which will: • Maintain our decisive strategic deterrent by: continuing to convert our strategic missile force to the more effective Minuteman III and Poseidon; equipping those missiles with mu1tiple, independently targeted warheads ,and aids to help them penet.rate enemy defenses; and modernizing our manned bomber force with additional FB-111 aircraft and improved short range attack missiles. • Proceed with procurement of the Sentinel missile defense system to meet the 'threat posed by the emerging Chinese nuclear capability. In addition, we will begin a revamping of our air defenses. • Augment the firepower, mobility, and readiness of our general purpose forces by improving their air defenses, buying new fixedwing aircraft and helicopters, and procuring other new weapon systems. We will also replenish munitions, supplies, and equipment consumed in Vietnam. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 27 • Improve further our airlift-sealift capability by additional purchases of the giant C-5A aircra:f.t ·and initial procurement of the fast deployment logistics ship. • Continue the vigorous research and development effort which constitutes the Nation's investment in our future national security. To accomplish these improvements, to meet all of our requirements in Vietnam, and to meet the full year's cost of the October 1967 civilian and military pay raise will require an increase of $3.3 billion in outlays for national defense in 1969. We can and will meet all of our essential defense requirements. But we intend to insure that our defense dollars are spent ·as efficiently and effectively as possible. At my request, the Department of Defense will continue its searching review to reduce costs and to defer or stretch out all programs in which economies can be effected without reducing overall defense readiness. International affairs and linance.-Through its international programs, the United States seeks to promote a peaceful world community in which all nations can devote their energies toward improving the lives of their citizens. We-share with all governments, particularly those of the developed nations, responsibility for making progress toward these goals. The task is long, ha.rd, and often frustrating. But we must not shrink from the work of peace. We must continue because we are a Nation founded on the ideals of humanitarian justice and liberty for all men. We must continue because we do not wish our children to inherit a world in which two-thirds of the people a.re underfed, diseased, and poorly educated. The $2.5 billion in new obligational authority requested for 1969 for the economic assistance program is essential to the success of our efforts. Most of our assistance is provided in concevt with other industrialized nations, some of whom devote a larger proportion of their economic resources to this purpose than we do. Our assistance, even when combined with the growing contribution of other industrial nations, cannot itself guarantee the economic growth of developing nations. But it can provide the crucial margin of difference between success and failure for those countries which are undertaking the arduous task of economic development. Since outside aid cannot substitute for effective self-help, we will continue to direct our economic assistance to those countries willing to help themselves. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28 THE BUDGET FOR FISCAL YEAR 1969 The 1969 economic assistance program will continue the trend toward increasing concentration on improved agriculture, education, health, and family planning. The economic aid program I am proposing will: • Accelerate growth in Latin America by modernizing agriculture and expandin~ education, and help lay the foundations for a Common Market, as agreed 111t Punta del Este last April. • Support India's recovery from recession and drought, and assist Pakistan's drive toward self-sufficiency in food. • Promote progress in the villages of Southeast Asia by helping them build schools, roads, and farms. More than 90% of our AID expenditures in 1969 will be for purchases made in the United States, and I have directed intensified efforts to increase this percentage. Upon completion of negotiations now in progress, I shall recommend legislation to ,authorize a U.S. contribution to a multilateral replenishment of the resources of the International Development Association, which is managed by the World Bank. I shall ·also request an increase in our subscription to the callable capital of the InterAmerican Development Bank (IDB); this action will enlarge the borrowing and lending capacity of this vital Alliance for Progress institution without requiring expenditure of U.S. Government funds. These resources, together with our proposed contributions to the IDB's Fund for Special Operations and the Asian Development Bank, will permit us to provide effective support for sound development projects while we share the financial burden with other donors. Our contributions will include adequate balance of payments safeguards. To assure sufficient food supplies for the developing countries, I am proposing extension of the Food for Freedom program beyond its expiration date of December 31, 1968. The Export-Import Bank will continue to assist the growth of U.S. exports, so essential to our balance of payments. I will propose legislation to establish a new Export Expamsion Program to guarantee, insure, and make direct loans for U.S. exports which do not qualify for Bank financing under existing criteria. Space research and technology.-This Nation's leadership in advanced technology was challenged 10 years ago by Sputnik and again 7 years ago by the first Soviet manned flight. We responded to these challenges with energy ,and imagination. We decided ,to create a national capability to operate in space. We est,ablished as a principal goal the development of launch vehicles and spacecraft large enough to transport men to the moon. We joined the strengths of our univer- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 29 sities, industry, and government to accomplish this goal, to expand our knowledge 0£ space, and to attain a leading position in aeronautics and space technology. Our continuing stream 0£ progress has been marked by many dramatic successes and by only a few tragic setbacks. The Mercury and Gemini programs have clearly demonstrated our progress in manned space flight. The recent, highly successful launch 0£ the huge Saturn V rocket emphasizes the great strides we have made in creating a large launch vehicle capability. We will resume manned flight tests 0£ the Apollo spacecraft this year, and proceed toward the manned lunar expedition. To meet our most urgent national needs in some areas requires us to reduce spending in others. New obligational authority requested for the National Aeronautics and Space Administration in this budget is about $220 million below the 1968 amount. Expenditures will be $230 million below 1968, $850 million below 1967, and over $1.3 billion less than in 1966. This reduction reflects our progress beyond the costly research and development phases 0£ the manned lunar mission, as well as the immediate need to postpone spending for new projects wherever possible. Based on a careful examination 0£ priorities, the 1969 budget provides increases in some areas to prepare for important advances in future years, while deferring other less urgent, new projects. The production 0£ our large Saturn-class space boosters is continued but at a reduced rate. The development 0£ a nuclear rocket engine to increase the capability 0£ our Saturn V launch vehicle is also continued, but at a smaller size and thrust than originally planned, to reduce development cost. ·we will not abandon the field 0£ planet,ary exploration. I am recommending development 0£ a new spacecraft for launch in 1973 to orbit and land on Mars. This new Mars mission will cost much less than hal:f the Voyager program included in last year's budget. Although the scientific result 0£ this new mission will be less than that 0£ the Voyager, it will still provide extremely valuable data and serve as a building block £or planet.ary exploration systems 0£ the future. Agriculture and agricultural resources.-In recent years, Federal agricultural commodity programs have succeeded in adjusting £arm production to domestic and export needs. Wheat acreage was increased in 1967 to permit additional food aid for developing countries £aced with low crop production. Cotton acreage will be increased in 1968 since surplus cotton stocks have been eliminated. The commodity programs have helped raise incomes £or many 0£ our https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 THE BUDGET FOR FISCAL YEAR 1969 farmers. However, many poorer families living in rural areas benefit little from these programs. The combination of rapidly rising farm productivity and more slowly growing demand for farm products has left many rural people with low incomes. The result has been a massive migration to the cities, limited job opportunities for people remaining in rural areas, and widespread rural poverty. Rising farm income plays a major role in improving economic conditions in rural areas. But other measures are needed: • The Secretary of Agriculture is working with other Federal agencies and local groups to help more rural people participate in Federal programs that provide increased economic opportunities and improved living conditions. • Legislation now before the Congress should be enacted to aid the establishment of multicounty area development districts. These districts would provide a broad base for planning and coordinating the development of public services and facilities in rural areas. • Capital needs of Rural Electrification Administration borrowers to provide necessa.ry electric power and telephone facilities in rural areas continue to expand. Legislation should be enacted to establish a cooperative bank for the telephone loan program and to permit the use of revolving funds for both the electric and telephone programs. The Wholesome Meat Aot of 1967 provides a new guarantee of safety for the Amerioon consumer. Under this aot it will be possible to bring the same assurance of wholesomeness for meat sold in intrastate commerce as for meat now inspected under the Federal system. Natural resources.-Federal programs to protect and develop our natural resources help strengthen our economic base and provide recreational opportunity for an expanding population. The 1969 budget calls for deferral of some lower priority resource activities. But adequate provision has been made to: • Protect our forests, conserve our fish and wildlife, and develop our miner,al resources; • Acquire new recreation areas; • Clean up the Nation's water; and • Continue water resource development. Construction costs have been rising sharply in recent years-by 5% in 1966 and 6% in 1967. To reduce the impact of Federal construction activities on the economy, I am recommending that ongoing water resource projects be continued at minimum rates. In many cases this will require a delay in present construction schedules. New water re- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 31 source development projects of the Corps of Engineers, the Bureau of Reclamation, and the Department of Agriculture, which had been recommended for starting in 1968 or had been added by the Congress, will be started overthe2-year period, 1968 and 1969. A small number of additional projects will be proposed for starting in 1969. The Water Resources Council is developing a more appropriate interest rate to be applied in formulating and evaluating water projects. The revised rate will be relaited to the average estimated current cost to the Treasury of long-term borrowing. It will be higher than the rate now in use for project evaluation. The new rate will be applied to future projects in order to assure the most effective use of Federal funds in the development of the Nation's water resources. Legislation to establish a National ·water Commission is already before the Congress and is essential if we are to deal more effectively with the Nation's critical water problems. We must also take steps to safeguard our scenic and historic areas and anticipate the resource needs of future generations. Legislation has been proposed and should be enacted promptly to authorize: • The Redwoods National Park in northern California; • The North Cascades National Park and National Recreation Area in the State of Washington ; • The Apostle Islands National Lakeshore in Wisconsin; • A National Scenic Rivers System; • ANationwide System of Trails; and • The Central Arizona Project. I also recommend legislation to : • Augment the revenues of the Land and Water Conservation Fund by use of part of the mineral leasing receipts from the Outer Continental Shelf; and • Establish a Federal-State system for regulation of surface mining operations. Commerce and transportation.-Many of the Nation's most urgent needs can be secured only with the dividends provided by continued economic growth. In addition to its overall fiscal policy, the Federal Government contributes to this growth in a variety of ways. For example, we : • Provide aid to American businesses, and stimulate increased competition; • Assist depressed areas of the Nation to share the fruits of prosperity; and • Encourage safe and efficient systems of transportation and communication. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 THE BUDGET FOR FISCAL YEAR 1969 These are our long-standing goals, which require a slightly different emphasis ooch year to focus our efforts on the emerging needs of a rapidly changing society. The budget for 1969 is responsive to this need by: • Encouraging private business to create job opportunities for those living in blighted urban areas; • Enhancing the well-being of seriously depressed regions by helping selected communities take better advantage of existing Federal grant programs; • Strengthening centers of potential economic growth within depressed regions to reduce excessive migration to larger urban centers where job opportunities often are not available; • Improving our balance of payments, by increasing assistance to businesses to expand their exports and by attracting more tourists to the United States; and • Providing improved statistics to aid business, labor, and government in sustaining economic growth. Our economic growth and well-being rely heavily on fast, efficient movement of goods and people. The 1969 budget provides for continuing development of a prototype civil supersonic transport, for further tests of high-speed ground transportation, and for an expanded research program to stimulate innovation in our congested urban transportation systems. I have directed the Secretary of Transportation to develop recommendations for providing and financing the facilities and services required to meet the long-term needs of the Nation's rapidly growing air transportation network. I am also proposing a broad program of transportation user charges to apply the test of the marketplace to these activities, and to relieve the general taxpayer of some of the burden of financing special benefits for certain individuals and industries. ,vhile we prepare for the future, we cannot overlook the urgent demands of the present. Safety will continue to receive high priority in the 1969 budget program. e must attack the tragic toll of traffic fatalities on the Nation's highways and equip our airways to handle increased air traffic safely and efficiently. ,v Housing and community development.-Most Americans lead a comfortable life, in comfortable homes and comfortable surroundings. But millions of families are still crnwded into housing unfit to live in, located in squalid surroundings, and burdened "·ith wornout facilities and inadequate services. Without some assistance and the development of new techniques, our private economy cannot now https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 33 provide good housing at costs these families can afford. Our cities cannot afford all the essential facilities and services. The Federal Government must continue and expand its assistance. I propose to the Congress that we launch a program, in cooperation with private industry and labor, to build 6 million new housing units for low- and middle-income families over the next 10 years. Under existing legislation and the new measures I will propose, we can begin this program in fiscal year 1969 with 300,000 housing units. Federal aids for State and local services, especially those for education, health, manpower training, and basic income support are, to a large extent, directed at needy families. In addition, housing and community development programs are aimed more specifically at improv,ing their surroundings. This budget provides : • $1 billion for the 63 Model Cities now planning their programs to concentrate assistance to some 3.7 million people living in the most blighted areas of these cities, and for approximately 70 cities expected to start their planning in the late spring. • $1.4 billion of advance funding for the urban renewal program for 1970, allowing the communities to start planning their action programs now. To provide decent housing for ·all Americans, the housing industry must be able to compete on equal terms with other sectors for needed resources. However, in the past 2 years, housing has been at a disadv;antage in competing for investment funds. The tax increase I have proposed will help solve this problem. In addition, specific steps to overcome the competitive disadvantage ·are being proposed to the Oongress, including: • Authority to lift the ceHing on interest rates for FHA and VA mortgages, which currently discourages sa;vers from investing in mortgages. • An orderly transfer of ownership of the Government's activities in the secondary mortgage market to private hands, so that private capital can be raised and mortgages purchased as required by market conditions. Despite substantial progress, our urban problems remain complex. Their solutions will be difficult. Our understanding of the basic nature of the problems and of the correct solutions is deficient. To remedy this deficiency, the 1969 budget provides for a doubling of the general research funds available to the Department of Housing and Urban Development. Detailed recommendations to augment our efforts to solve housing and urban problems will be presented in a separate message to the Congress. ,300--000 Q---68-3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 THE BUDGET FOR FISCAL YEAR 19 6 9 Health, labor, and wellare.-Programs that help develop our most valuable resource-our people-are essential to the long-run growth and vitality of the Nation. No society can flourish unless its people have opportunities for jobs and the skills to perform them, receive adequate health care, and are free from the fear ~f basic economic insecurity. The 1969 budget will permit us to further these objectives. Outlays for these programs are estimated at $51.4 billion, of which over 75% will be provided through trust funds which are largely selffinanced. Herilth.-Since 1963, Federal outlays for health have increased sixfold-from $1.7 billion to $10.7 billion. Medicare has prodded insurance coverage against hospital and doctors' bills for nearly all older Americans. Under Medicaid, medical assistance has been extended to 8.5 million needy individuals. The number of medical and dental schools has ·been significantly increased, new mental retardation clinics and mental health centers are providing services, and infant mortality has been reduced. But our job is far from complete. This budget will reinforce our partnership with State and local governments in attacking health problems; speed research findings to victims of heart, cancer, stroke, and related diseases; intensify the attack on air pollution; expand health care for mothers and children; and increase voluntary family planning services. To broaden and supplement these efforts, I will propose legislation to: • Attack the problem of infant mortality by providing, for families which cannot afford it, access to health services from prenatal care for the mother through the child's first year. • Increase the supply of health manpower. • Establish more effective leadership and an improved personnel system for the health activities of the Department of Health, Education, and Welfare. Labor and manpower.-The opportunity to work in a meaningful job is a fundamental right in our society. This opportunity is denied those who are ill-equipped through lack of education and job skills, and those who a.re handicapped by the effects of discrimination and a slum environment. The 1969 budget provides for a wide range of manpower programs which will enable 1.3 million Americans to start on the road to economic self-sufficiency and individual dignity. Another 230,000 disabled Americans will be restored to productive employment through the vocational rehabilitation program. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 35 The Concentrated Employment Program, which brings together a wide range of manpower and related services in selected geographic areas, will be expanded to an additional 70 areas-35 of them rural. This will bring to 146 the number of the Nation's most severe unemployment areas which will be served by this intensive effort. Major increases are also planned in programs to enlist private employers in training and employing the hard-core unemployed. State and local manpower planning will be strengthened, and manpower activities in the Department of Labor have been restructured to improve delivery of manpower services. Legislation will be proposed to : • Update the unemployment insurance program by extending coverage, raising benefit levels for unemployed workers, increasing the length of benefits under ceiiain circumstances, correcting abuses, and providing for services which would increase the workers' employability. • Reduce threats to the health and safety of workers through a comprehensive Federal-State program and assure workmen's compensation benefits to uranium miners who contract lung cancer. Economic opportunity programJs.-Poverty in the midst of plenty casts an ugly shadow on our society. We have a commitment to remove that shadow. We know that poverty cannot be eradicated overnight. But we ~ust persist in our efforts to help those oppressed by poverty-whether they live in blighted urban areas or in impoverished rural counties. Work and training programs are being expanded and increasingly aimed at helping the poor. In addition, this budget will enable the Office of Economic Opportunity to provide: • Improved planning capability of local Community Action Agencies. • Services for a full academic year to 202,000 children through Head Start and a summer program for 450,000 children to remove basic disadvantages suffered by poor children on entering school. • Head Start Follow Through to help 79,000 children retain the gains provided by the Head Start program. • Assistance to make a college education possible for :n,ooo deprived but talented youths through the Upward Bound program. • Comprehensive family health services for the poor through nearly 50 neighborhood health centers. New approaches are being tested through cooperation among Federal agencies in multipurpose neighborhood center demonstration projects in 14 cities. These centers will develop service systems to render assistance more effectively to those in need. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36 THE BUDGET FOR FISCAL YEAR 1969 Although the task is great and the problem complex, we have, in recent years, made substantial strides in reducing poverty. Between 1963 and 1967, the number of people living in poverty fell from over 35 million to less than 29 million, and from 19% of our population to under 15%. But 29 million poor people are still far too many. In addition to programs of the Office of Economic Opportunity, various other Federal programs provide assistance to help reduce the number of those living in poverty. FEDERAL AID TO THE POOR 1 (Fiacal yeara. In billiona] Category 1960 1963 1967 1968 1969 actual actual actual estimate estimate $2.3 .9 10.4 $2.0 1.0 3.2 12.8 1.2 4.1 14.6 $2.5 1.6 4.7 15.9 .5 1.0 2.0 2.4 2.9 9.5 12.5 21.1 24.6 27.7 $0.1 $0.1 (2) (2) .6 8.3 Other social welfare and economic services ___ - -- --------- -- - ---- -- ------- Total_ _________________________ Education _______ - _- ___ - - - - - - - - - -- - - - Work and training ____________________ Health ______________________________ Cash benefit payments _________________ I Figures represent new obligational authority for Federal funds and expenditures in the case of trust funds. 2 Leu than $SO million. Social security and public assistance.-The 1967 Social Security Amendments represent a major stride toward improving the incomes of 24 million of our people-the aged, the permanently disabled, and survivors or dependents. These beneficiaries are fortunate enough to have been cm-ered by social insurance. Other, less fortunate members of our society must depend on welfare. To assist those welfare recipients who cannot find work because of a lack of training and responsibility for dependent children at home, this budget prOYides $100 million for training and $35 million for child care services. The transition from welfare recipient to wage earner will also be eased by the recent amendments which provide an incentive to work by exempting a certain portion of earnings from consideration of continued eligibility for assistance. Despite periodic revisions, much of the welfare system is outmoded and in need of change. Accordingly, I have appointed a commission to make a comprehensive review of existing welfare and related programs and to recommend whatever measures are necessary to provide https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 37 a more equitable and effective system of assistance to needy people. The budget includes funds under proposed legislation to expand the food stamp program of the Department of Agriculture. About three million low-income people will have better diets under this program by the end of fiscal year 1969. Education.-As a nation we are committed to develop the skills and talents of all our citizens. The Federal Government is playing an increasingly important role in this effort. The 90th Congre.ss added the Education Professions Development Act of 1967 to the historic laws enacted in 1965 providing Federal aid to education-the Elementary and Secondary Education Act, the Higher Education Act, and the National Foundation on the Arts and Humanities Act. We now have basic legislation to improve education at all levels. Our task is to use these tools wisely and imaginatively, directing them to the areas of greate.st need or potential. For 1969, I propose that the Federal Government continue in its determination to help make high-quality education available to all of America's young people. The budget includes: • $1.2 billion in grants for improving the elementary and secondary education of over 9 million children from low-income families; • An expanded Teacher Corps; • Increased grants for schooling of children with physical and mental handicaps which hinder learning for 1 child in 10; • A new program to better the achievement of children whose native language is not English; and • More than two million grants, loans, and part-time work opportunities for college students, including benefits under the GI bill. America's children must be prepared for the challenges of the future. To help them meet these challenges, we must explore the ways students learn and improve the ways teachers teach through: • Increases in education research, demonstrations, and curriculum development, including an experiment in model schools in the District of Columbia; • A new $30 million program to prevent dropouts; and • Innovations in training for the education profession through new patterns of operation and new ties among colleges and universities, States, and local schools. In order to meet these urgent requirements withiu a stringent overall budget, several programs have been reduced or deferred 1 including grants for construction of academic facilities and purchase of school equipment. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 38 THE BUDGET FOR FISCAL YEAR 196 9 I intend to propose legislation this year to : • Improve Federal support to higher education by providing greater flexibility in•administering student aid, providing counseling and tutoring for disadvantaged students, and encouraging schools to share libraries, computers, and other resources. • Support innovative projects in vocational education, particularly to aid the disadvantaged. • Provide advance financing for the newly authorized Corporation for Public Broadcasting. Veterans benefits and services.-Historically, this Nation has provided special benefits for the men and women who have served in the Armed Forces in times of national danger. In 1969, special emphasis will be given to programs designed to help newly discharged veterans find satisfactory employment or to improve their career opportunities through vocational or academic training programs. For men and women still on active military duty, the budget provides for legislation to increase protection under the Servicemen's Group Life Insurance program and for expanded counseling and civilian job-training opportunities in the closing months of military service. In addition to assistance in the development of veterans' career potential, this budget will also permit the continuation and improvement of the traditional programs of compensation, pensions, and medical care. Veterans hospitals will receive new medical services and improved nursing staffing. Applied medical research and medical education will be expanded. Legislation should be enacted to relate veterans pension payments more closely to in'dividual needs and provide better protection against loss of income. Studies are now underway to seek improvements in other veteran benefit programs. General government.-Rising crime rates are a major concern of the American people. I am determined that the Federal Government do everything properly within its power to assist our States and localities in controlling crime. I have directed Federal agencies to intensify their efforts to destroy organized crime. The budget reflects expansions in both direct Federal action and Federal assistance to State and local governments. Although the main responsibility for combating crime must rest with our State -and local governments, the Federal Government can effectively aid this effort by: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDEN'l' 39 • Encouraging modernizrution of law enforcement, corrections, and court systems; • Assisting law enforcement agencies throughout the country to improve and expand the exchange of information; and • Assisting in recruiting and training law enforcement personnel. With the Law Enforcement Assistance Act of 1965, a start was made toward more effective Federal-State-local cooperation. Last year I proposed the "Safe Streets and Crime Control Act" to expand on this promising beginning. We will renew our efforts to secure the enactment of this legislation so that an expanded effort against crime can go forward. The Federal Government's ability to take direct action has been strengthened by the Prisoner Rehabilitation Act of 1965, the Bail Reform Act of 1966, and the Narcotic Addict Rehabilitation Act of 1966. The budget supports these and other measures in an accelerated drive against crime. Legislation is also needed to provide support for efforts to prevent, treat, and control juvenile delinquency. Such legislation is now pending before the Congress and should be enacted promptly. The efforts of this Administration to bring home rule to the District of Columbia are well known. I am confident that the Mayor and the Council, by their adions and with community support, will prepare the way toward the goal of local self-government. Voting representation in the Congress is an additional necessity if District citizens are to participate fully in our democratic processes. I am again recommending that the authorized Federal payment to the District of Columbia be established equal to 25% of District revenues, so that the Federal Government will be contributing its fair share toward the needs of the Nation's capital. NEW BUDGET CONCEPTS In my budget message last year, I oalled for a thorough and objective review of budgetary concepts by a bipartisan group of informed individuals with a background in budgetary matters. I stated my hope that this group would recommend an approach to budgetary presentation which would assist both public and congressional understanding of this vital document. In March of 1967, a Commission on Budget Concepts was established to make such a review and report its recommendations to me. The Commission consisted of 16 distinguished Americans, including the chairmen ,and ranking minority members of the Appropriations https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40 THE BUDGET FOR FISCAL YEAR 196 9 Committees of the Congress, as well as top Government financial officials and eminently qualified private citizens. This budget puts into effect most of the major recommendations in the Commission's report, which was presented to me on October 10, 1967. These include: • A single unified budget statement to replace the three concepts previously used. • Comprehensive coverage in the budget of all programs of the Federal Government and its agencies, including some $47 billion of trust funds as well as Federal :funds. • Di1Jision between an ewpenditure accownt and a loan accownt, using the former as a measure of economic impact for fiscal policy purposes. • Offsetting agaimt related expenditwres tlwse recdpts of the Government which are market-oriented in character, rather than based on the Government's sovereign power to tax and regulate. • Highlighting action required of the Congress on the budget and relating that action more closely to outlays. • Treating sales of participation certificates, which had previously been considered as an offset to Government expenditures, as a means of financing the deficit. Several other changes recommended by the Commission for adoption in :future years are now under preparation :for later application. It is my hope that the far-reaching proposals made by the Commission, and their adoption for this budget, will serve the desired purposes of improving public understanding of the Federal budget and overcoming many of the inadequacies o:f the concepts :formerly used. PLANNING-PROGRAMING-BUDGETING SYSTEM To improve the process by which Federal programs are planned and the Federal budget prepared, the Government is continuing to develop the Planning-Programing-Budgeting (PPB) system which has now completed its second year of operation. This system provides information and analysis to relate the programs we under.take to the ends they are to achieve, and to choose the most efficient ways of using our resources to reach our goals. This year the program budgets developed under the system have been employed as the framework within which program costs and accomplishments were reviewed. As a result, the different programs now stand in a clearer relationship to each other and to their objectives. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 41 The system is also providing comparisons of the cost and effectiveness of alternative ways to achieve our objectives. For example: • The Department of Health, Education, and Welfare has analyzed the effectiveness of the cooperative Federal-State vocation.al rehabilitation program. This study indicated that the increase in lifetime incomes of participants is many times the rehabilitation cost, confirming previous judgments that this program merits high priority. • In the area of non-service-connected veterans pensions, a series of studies was done to compare various benefit formulas from the point of view of their cost, the equity with which they treat beneficiaries, and the extent to which they protect beneficiaries against large loss of pensions from small increases in other income. These studies have shown the need for legislation, provided for in this budget, that would relate pension payments more closely to the needs of the beneficiaries. • Through the program evaluation system in the Econ-0mic Development Admvnwtration of the Department of Commerce, the number of jobs expected to result from proposed development projects in depressed areas has been estimated in relation to the extent of poverty and unemployment prevailing in the areas and to tJhe costs of creating the jobs. This has assisted EDA in judging the most effective distribution of its resources among proposed projects. w·e will extend the application of PPB during the next year, and strengthen it where it has already been introduced. In particular, we will continue to improve measures of the effectiveness of programs and to develop better alternatives. IMPROVING GOVERNMENT MANAGEMENT In recent years, the Federal Government has undertaken a number of vital new programs to improve America's urban and rural communities and enhance the way of life of all of our people. To attain the full benefits of these programs, it is essential that they be made workable at the point of impact-whether it be the individual citizen, a State or local government, a university, or any of the other institutions involved in efforts to carry out our national goals. Effective and economical management is also essential to ensure that each tax dollar buys a full dollar's worth of essential services. Government organization.-In the past 4 years, we have undertaken more fundamental reforms in managing the Government than, perhaps, at any other time in our history. We have witnessed such https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 THE BUDGET FOR FISCAL YEAR 19 69 major advances as the creation of two new cabinet agencies-the Departments of Transportation and of Housing and Urban Development. Significant reorganizations have taken place in other programs, among them the Public Health Service, the Community Relations Service, the Federal Water Pollution Control Administration, and the Bureau of Customs. New strides were made last year by: • Providing the District, of Columbia with a modern governmenibal organization, replacing the obsolete three-member Board of Commissioners with a single chief executive and a nine-member council to exercise quasi-legislative functions. • Creating the Social and Rehabilitation Service in the Department of Health, Education, and Welfare to unify the administration of related income support •and social service and rehabilitation programs. • Reorganizing the Bureau of the Budget to enhance its ahility to help coordinate Federal programs and provide additional staff services for the solution of interagency and intergovernmental problems. A key tool in improving Government organization is the President's authority to transmit reorganization plans to the Congress. That authority is scheduled to expire on December 31, 1968. Legislation is being proposed to extend the authority for an additional 4 years to help ensure the continued ability of the President to reshape programs and organizational structures to meet changing needs and circumstances. The problems we face in the administration of new, comprehensive attacks on socia1 problems often involve a number of agencies-as in the new Model Cities program. These problems cannot be solved simply by shifting functions between agencies. Heavy emphasis is therefore being given to improving both the formal and informal methods used to ensure that agencies work together effectively on related programs. An example of the efforts being made in interagency cooperation is the program involving the Office of Economic Opportunity and the Departments of Labor, Housing and Urban Development, and Health, Education, and Welfare to aid 14 cities in the establishment of pilot neighborhood centers to provide comprehensive services to residents in low-income neighborhoods. Federal-State-local cooperation.-The need for cooperation and coordination between the partners in our federal system has also https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 43 increased. The problems of managing many of our most, important new programs are intensified by their intergovernmental character. At the Federal level we must do what we can to assist our partners. "\Ve must assure that our programs are designed and administ:ered in snch a way as to mesh with State and local patterns of organization and operation to the maximum extent possible. We must ensure that Federal programs promote State and local initiative and action. To that end, we have taken a number of actions in the past year alone: • Developed and put into operation a system through which State and local chief executives have the opportµnity---often not previously availa'ble to them-to have a voice in developing Federal regulations and administrative procedures. • Established procedures to improve Federal-State coordination in the designation of development planning districts. • Provided an opportunity for areawide planning agencies to comment on proposed applioations for specific grants that would affect the orderly development of their metropolitan areas. • Taken initial steps to shorten processing time on applications under many vital grant programs by 50%. Improvement is a continuous process, as it must be to meet the needs of a dynamic and rapidly changing society. We must prepare now to meet the public service needs of our people in the seventies. One of the prerequisites to satisfying the awesome demands of the future is a corps of competent, well-trained. public servants. Enactment of the pending Intergovernmental Manpower Act will provide a significant stride forward in filling the gap of trained manpower at the State and local levels of Government. Two additional measures are needed to improve the funding and management of intergovernmental programs significantly : • Joint Funding Simplification Aat.-This measure, which was sent to the Congress last year, will simplify and streamline the application, processing, and administration of a number of related grants by managing them as a single, unified project. • Funding improvements and consolidation efforts.-To overcome the serious problems of planning education programs at the State and local level caused by grant delays, I am seeking early appropriations for elementary and. secondary education. The amounts which will be available must be known in the spring, if local communities are to be able to use them most effectively in the ensuing school year. I am also proposing to consolidafo related grants for college student aid and for vocational educrution. This consoli- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 THE BUDGET FOR FISCAL YEAR 19 6 9 dation, coupled with ,advance funding action similar to that mentioned above, will f,acilitate advance planning by both the institutions and students. Further action is underway to determine whether additional consolidations of grant programs are feasible. As proposals are developed, they will be promptly forwarded to the Congress. Again, as last year, I must stress that State and local governments must help themselves too. Encouraging steps are being taken, but many serious problems of modernization of executive direction and financial systems remain which can only be remedied by those governments and their citizens. Cost reduction.-! have continued to insist tha,t the executive branch of the Federal Government be operated as economically and efficiently as possible. Some examples of the actions agencies took in the past year to cut costs are : • The Department of Defense achieved savings of over $339 million by value engineering. Under this program unnecessary equipment, facilities, procedures, and supplies are eliminated. A good example is the $2.1 million saved by the redesign of an aircraft camera. Performance was improved and unit costs were reduced by about 40%. • The Manpower Administration of the Department of Labor, through improved work methods, achieved estimated savings of over $19 million. • All Government agencies, by sharing automatic data processing resources through an exchange program, avoided costs of over $28 million. Redistribution of ADP equipment avoided new procurement of $,80 million. • The National Aeronautics and Space Administration, by utilizing idle, excess, and surplus Government property, avoided expenditures of over $22 million for new equipment or facilities. In addition, NASA saved over $16 million by improving procurement practices. • A value analysis of the specifications for the computer display channel of the National Airspace System development enabled the Federal Aviation Administration to avoid costs of approximately $12 million. • The Coast Guard reorganized its search and rescue mission funetion along the east and gulf coasts, leading to savings estimated at $14.6 million. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BUDGET MESSAGE OF THE PRESIDENT 45 • The Post Office has improved its procurement of transportation to the extent that $107 million was saved in the period from 1965 through 1967. CONCLUSION This is a critical and challenging time in our history. It requires sacrifices and hard choices along with the enjoyment of the highest standard of living in the world. No nation has remained great by shedding its resolve or shirking its responsibilities. We have the capacity to meet those responsibilities. The question before us is whether or not our will and determination match that capacity. In the past 4 years, this Nation has faced formidable challenges. We have confronted them with imagination, courage, and resolution. By acting boldly, we have forced a number of age-old concernsignorance, poverty, and disease-to yield stubborn ground. The rollcall of accomplishments is long. But so is our agenda of unfinished business. Our heritage impels us to steadfast action on those problems of mankind which iboth gnaw at our conscience and challenge our imagination. As your Presiden.t, I have done all in my power to devise a program to meet our responsibilities compassionately and sensibly. The program is embodied in this budget for 1969. I urge active support for its principles and programs. LYNDON B. ,ToHNSON. JANUARY 29, 1968. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PART 2 SUMMARY TABLES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47 EXPLANATION OF PRINCIPLES USED IN COMPILING TABLES This statement focuses attention on the more significant aspects of the summary tables, highlighting the changes from previous budgets. An explanation of the funding system of the Government (types of funds, types of budget authority, balances of budget authority, and kinds of action requested of Congress) is contained at the beginning of part 5 (pp. 191 to 195). A comparison of certain totals in part 2 with the totals under two older measures-the administrative and consolidated cash budgets-is contained in special analysis A (pp. 464 to 472). A comparison with the Federal sector of the national income accounts appears in special analysis B (pp. 473 to 482). Coverage of the budget.-The budget covers all Federal agencies and programs no matter how funded. It covers both Federal funds and trust funds. Mixed-ownership (Government-private) and nonstock Government corporations are included as trust revolving funds. Tm) groups of privately owned corporations-the Federal land banks and Federal home loan hanks-are excluded from the totals, as is the Federal Reserve System, but are presented as annexed budgets. The municipal government of the District of Columbia is excluded. :\1oneys held in suspense as deposit funds are also excluded. In mnny tables the budget outlays are divided bet\\·een an expenditure account and a loan account. Budget authority is also broken between the expenditure aeeount nnd the loan 1u·eo1mt in many tables. The portion which permits obligations for expenditure is rnlled new obligational authority. The portion which permits obligations in the loan account is called loan authority. Contents of the loan account.-Transactions in the loan account are limited to those affecting the principal amount of loans outstanding and, in 11 few cases, the unamortized premium or discount where the loan is in the form of a mortgage purchase. Administrative and operating expenses, interest, writeoffs of loans, and other costs and revenues are counted in the expenditure account. Therefore, loan disbursements equal checks issued to make loans less writeoffs and losses, and plus recoveries of loans outstanding. Loan repayments equal collections on the principal of loans. 48 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SUMMARY TABLES 49 The loan account excludes (and the expenditure account includes) lending programs which lack certain characteristics of a normal loan program (for example, nonrecourse loans of the Commodity Credit Corporation, and loans where repayment is contingent upon some future happening, such as the discovery of minerals) and foreign loans not on commercial terms. Consolidation of funds.-Certain payments between funds are accounted for as expenditures of one fund and as receipts of another in financial statements that relate to the individual funds. When all funds are consolidated into a single schedule as in the budget, the duplication involved in the interfund and intragovernmental transactions must be eliminated. This is generally done by deducting the amounts innilved from both the outlays and the budget unthority for the agency receiving the payment. However, in a few cases where the payment is in the nature of n, transfer of receipts, the deduction is made instead from the agency making payment. In two situations the interfund and intragovernmental transactions are not deducted from the figures of any agency or function, but appear as special deduct lines in computing total outlays und budget authority. One of these constitutes the Government's payments as employer into trust funds for retirement of its employees. The other consists of the interest receipts of the trust funds. In the lntter case, the deduct line on most summary tables includes both the intragovernmental interest receipts and a smaller amount of interest receipts from the public, which are offset because they are proprietary receipts as described in paragraphs below. Basis for figures.- Receipts and repayments reflect collections. Out.Jays are stated in terms of checks issued. Where cash is paid in lieu of checks, such payments are counted. The accrual basis is generally used for interest on the public debt; in the case of bonds and notes where interest expense of the Government is reflected in periodic changes in redemption value, the interest expenditure is counted when the redemption value changes. Offsetting of receipts against expenditures.-All expenditure figures used in the budget are net of the following types of receipts: • Refunds of previous erroneous expenditures, to the extent that statutes permit the money to be used again without further congressional action. • Collections of revolving funds, management funds, and trust revolving funds. • Reimbursements to appropriations where the law permits such reimbursements to be merged with appropriations. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 50 THE BUDGET FOR FISCAL YEAR 1969 Other receipts from the public (apart from loan repayments, discussed above) fall into two classes, treated as follows: • Those that are collected because of the sovereign or other compulsory powers of the Government are reported as budget receipts. Gifts and contributions (as distinguished from payments for services or cost-sharing deposits by State and local governments) are also counted as budget receipts. • Receipts which arise out of the proprietary activities of the Government-that is, interest, sale of property and products, charges for nonregulatory services, rents and royalties, etc.-are not counted as budget receipts, but are offset against expenditures in total for each agency and for each function. They are offset against new obligational authority in similar amounts. These offsets are shown separately from the individual entries in detailed tables such as those in parts 4 and 5; the offsets have already occurred, line by line, in the summary tables of part 2 (except for tables 5 and 6). Transactions not counted as receipts or expenditures.-The proceeds from borrowing are not receipts. Repayments of borrowings nre not expenditures. These rules are npplied whether the borrowing is by the Treasury in the form of public debt, or by individual agencies in the form of agency debt. The sale of certificates representing participation in t,he ownership of a pool of loans is considered to be borrowing. Debt instrnments issued in lieu of checks, in payment of subscriptions to international lending organizations, are not considered borrowing or an expenditure, but remain a part of the obligated balances until they are cashed, at which time they become an expenditure. These differ only in form, and not in substance, from letters of credit and open-book balances for unpaid obligations. The Government's deposits with the International Monetary Fund (DfF) are considered similar to cash assets. Therefore the movement of money between the L\'IF and the Treasury is not in itself considered a receipt or expenditure, borrowing or lending. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 SUMMARY TABLES Table I. BUDGET SUMMARY (in billions of dollars) Description Budget authority: Requiring current action by Congress: Previously enacted _______________________________ Proposed in this hudget_ __________________________ Becoming available without current action by Congress __ Deductions for interfund and intragovernmental transactions and applicable receipts _____________________ 1967 1968 1969 actual estimate estimate 135.4 -----------58.7 125. l ----------3.3 141.5 69.9 73. l -11.5 -11.8 -12.9 Total. budget authority _________________________ 182.6 186.5 201.7 Rec:eipts, expenditures, and net lending: Expenditure account: Receipts ________________________________________ Expenditures ( excludes net lending) ________________ 149.6 153.2 155.8 169.9 178. l 182.8 Expenditure deficit ( - )- _________________________ -3.6 -14.0 -4.7 Loan account: Loan disbursements ______________________________ Loan repayments _________________________________ 17.8 12.6 20.9 15. l 20.4 17.1 Net lending. __________________________________ 5.2 5.8 3.3 Total budget: Receipts ________________________________________ Expenditures and net lending ______________________ 149.6 158.4 155.8 175.6 178. l 186.1 Budget deficit ( - ) _____________________________ -8.8 -19.8 -8.0 Budget financing: Borrowing from the public __________________________ Reduction of cash balances, etc_ _____________________ 3.6 5.3 20.8 -1.0 8.0 8.8 19.8 8.0 341.3 269.2 370.0 290.0 387.2 298.0 Total, budget financing _______________________ * -~ /966 actual Outstanding debt, end of year: Gross amount outstanding ------------Held by the public ___ ------------ ---- 329.5 265.6 -- MEMORANDUM-OUTSTANDING LOANS, END OF YEAR Direct loans (in loan account) __________________________ Guaranteed and insured loans _________________________ 34.0 99.5 39.8 107.1 ----·--·---- - *Less than $50 million. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43.1 117.1 --- 52 THE BUDGET FOR FISCAL YEAR 1969 Table 2. BUDGET RECEIPTS, OUTLAYS, AND BUDGET AUTHORITY (In millions of dollars) Description Receipts by source: Individual income taxes ____________________________ Corporation income taxes ___________________________ Employment taxes _________________________________ Unemployment insurance ___________________________ Premiums for other insurance and retirement_ _________ Excise taxes _______________________________________ Estate and gift taxes _______________________________ Customs __________________________________________ Other receipts _____________________________________ Total, receipts _________________________________ ! I f Outlays by function: ationa\ defjnse_ .- _________________________________ 1 nternationa affairs and finance _____________________ Space research and technology _______________________ Agriculture and agricultural resources ________________ Natural resources __________________________________ Commerce and transportation _______________________ Housing and community development_ _______________ Health, labor and welfare __________________________ Education ________________________________________ Veterans benefits and services ____ - - - - - - - ---- - - - - - - - - I Interest_ _________________________________________ General government_ _______________________________ Allowances for: Civilian and military pay increase _________________ Contingencies ___________________________________ Undistributed intragovernmental payments: Government contributions for employee retirement_ __ Interest received by trust funds ____________________ 1967 1968 1969 actual estimate estimate 61,526 33,971 27,823 3,652 1.853 13,719 2,978 I. 901 2. 168 67,700 31.300 29,730 3,660 2,049 13,848 3,100 2,000 2,443 80,900 34,300 34,154 3,594 2,275 14,671 3,400 2,070 2.744 149,591 155,830 178. 108 70,092 4,650 5,423 4,377 2. 132 7,446 2.285 40,084 4,047 6,898 12.548 2,454 76,489 5,046 4,803 5,311 2,432 7,853 3,954 46,417 4,541 7,168 13,535 2,578 79,789 5,153 4,573 5,609 2,490 8,121 2,784 51,407 4,699 7,342 14,400 2,790 ------- -----1------------ ------------1 Total, outlays _________________________________ Budget deficit ( - ) ____________________________ -1.735 -2.287 i I I -8,8Z3 I 158,414 -2.007 -3,042 175,635 186,062 -19,805 -7,954 Budget authority by function: National defense ___________________________________ 75,780 75.276 International affairs and finance _____________________ I 5,267 5. 115 Space research and technology _______________________ 1 4,966 4,587 Agriculture and agricultural resources _______________ -1 5,723 I 5,833 2,502 Natural resources _____________ - - - _- - - - - - - - - - - - - - - - - i 3,279 I Commerce and transportation _______________________ 9,591 9,283 Housing and community development ________________ 6,924 3,964 Health, labor, and welfare __________________________ 48,411 53.149 Education ______________________________________ - 6,675 5,331 Veterans benefits and services _______________________ 7,860 6,959 Interest_ _______________________________________ - _ 13,535 12,548 General government_ _______________________________ 2,506 2.460 Allowances for: Civilian and military pay increase ________________________________________ _ Contingencies___________________________________ __ _____ _____ 150 Undistributed intragovernmental payments___________ -4,021 -4,590 Total, budget authority _______________________ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 182,562 , 1.600 350 100 -1.913 -2.678 186,499 82,317 5,308 4,369 6,356 2,275 9,008 4,968 59,875 5,272 7,817 14,400 2,654 1.600 550 -5.048 201,723 53 SUMMARY TABLES Table3. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION ( In millions of dollars) Budget authority Deacription Outlay, 1967 1968 1969 1967 1968 1969 actual estimate eatimate actual estimate eatimate 75, 780 4,402 4,587 82,317 4,700 4,369 70,095 4, 110 5,423 76,491 4,330 4,803 79,792 4,478 4, 5i3 4,383 2,488 9,066 5, 131 2,271 8,776 3, 156 2, 113 7,308 4,412 2,416 7,695 4,474 2,483 7,996 1,869 53, 131 4,673 7,305 13,535 2,548 2,833 60,413 4,585 7,515 14,400 2,690 577 39,512 3,602 6,366 12,548 2.452 697 46,396 4,157 6,798 13,535 2,618 1,429 51,945 4,364 7, 131 14,400 2,827 Expenditure aeeount: National defense _______________ 75,276 International affairs and finance __ 4,336 Space research and technology ___ 4,966 Agriculture and agricultural resources ______________________ 4,318 Natural resources ______________ 3,262 Commerce and transportation ____ 8,653 Housing and community developmenL ______________________ 1,503 Health, labor and welfare _______ 47,841 Education_____________________ 4,430 Veterans benefits and services ____ 6,369 InteresL- _____________ -- _-__ -- 12,548 General government_ ___________ 2,463 Allowances for: Civilian and military pay increase_____ - - ----- --- - - - - - - . . .. Contingencies _______________ Undistributed intragovernmental payments: Government contributions for employee retirement_ _______ -1,735 Interest received by truat funds. -2,287 150 1,600 550 -1,913 -2,678 -2,007 -3,042 Total, new obligaticnal authority and expenditures__ 171,944 179,325 197,105 .. Loan account: National defense _______________ International affairs and finance __ Agriculture and agricultural resource, ______________________ Natural resources _________ - - - - Commerce and transportation ____ Housing and community developmenL _____________ ----- _- -Health, labor and welfare _______ Education _____________________ Veterans benefits and services. ___ General government_ ___________ .. --·· ---- I. 600 100 350 -1,735 -2,287 -1,913 -2,678 -2,007 -3,042 153,238 169,856 182,797 --- 865 608 -3 540 -2 716 -4 675 1,405 17 938 1,450 14 217 1,225 4 232 1,221 19 138 899 16 158 1.135 7 125 5,421 570 901 590 -3 2,0951 18 2,002 ' 555 -42 2,135 -538 687 302 -36 1,708 572 445 532 2 3,257 21 384 370 -40 1,355 -538 335 211 -37 10,618 7,174 4,618 5,176 5,779 3,265 Total, budget authority and outlays__________ - - - - - - -- 182,562 186,499 201,7231 158,414 175,635 186,062 Total, loan authority and net lending ______________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis --------- 779 --------- --------- 54 THE BUDGET FOR FISCAL YEAR 1969 Table 4. BUDGET AUTHORITY AND Ol:JTLAYS BY AGENCY ( In millions of dollars) Budget authority Outlays Description 1967 actual 1968 estimate 1969 estimate 1967 actual 1968 estimate 1969 estimate 240 88 28 274 95 285 32 102 33 6,139 6,846 945 4,851 5,292 5,062 6,556 717 737 5,424 6,790 795 79. 116 Expenditure account: Legislative Branch _____________ 272 261 I The Judiciary __________________ 91 96 Executive Office of the President_ 31 29 I Funds appropriated to the President_ _______________________ 5,407 4,815 Department of Agriculture ______ 6,707 6,834 Department of Commerce _______ 970 894 Department of Defense-Mili72,755 tary _- --- ---------- ----- ---- 72,287 Department of Defense-Civil__ I, 357 1. 358 Department of Health, Education, and Welfare _____________ 41, 133 45,568 Department of Housing and Urban Development_ _________ 1,421 1,824 Department of the Interior______ 643 844 Department of Justice __________ 406 462 Department of Labor_ __________ 4,578 4,772 Post Office Department_ ________ 1,215 1,174 Department of State ____________ 402 399 Department of Transportation ___ 6,262 6,696 Treasury Department_ __________ 13,084 14,456 Atomic Energy Commission _____ 2,199 2,509 General Services Administration __ 116 362 National Aeronautics and Space I Administration _______________ 4,9661 4,587 Veterans Administration _______ -1 6,339 7,273 Other independent agencies ______ , 6,094 5,782 Allowances for: Civilian and military pay ini i crease _____________________ Contingencies ________________ ---------1-----150-1 Undistributed intragovernmental pymets , a n : Government contributions for i empIoyee retirement_ . _______ , - I , 735 -1,913., lnterestreceivedbytrustfunds_ -2,287 -2,678 I 1· 295 103 33 67,466 73,694 76,658 1,307 1,310 1,378 1,343 51,468 34,866 40,787 45,889 2,763 847 542 4,950 920 428 695 505 409 3,247 985 758 444 3,876 1,087 428 1,756 6,525 15,410 2,755 371 4,369 7,488 6,384 13,098 2,264 134 5,753 14,461 2,333 435 3,91 4 767 439 6,282 15,425 2,546 534 5,423 6,357 3,283 4,803 6,768 3,598 4,573 7, 11 3 3,763 1.141 419 5,428 ' ' 911 555 ' 1,600 ; __________________ : 550 !--------- 100 I j -2,007, -1,735 -3,042: -2,287 I, 600 350 -1,913 i -2,007 -2,678 1 -3,042 _ _ _ _ ,_ _ _ _ ,_ _ _ I_ _ _ _ ~ - - - - - ! I Total, new obligational authority and expenditures_ _ 171, 944 , 179,3251197, 105 Loan account: Funds appropriated to the President_ ______________________ _ 22 Department of Agriculture _____ _ I, 221 Department of Commerce ______ _ 70 , i Department of Defense-Military _________________________ _ Department of Defense-CiviL ___ _ Department of Health, Education, and Welfare ___________ _ 507 I *Less than $500 thousand. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I ;---,---- i 153,238 j )69,856 I 182,797 ' 14 i 965 67 4 684 82 ' 21 536 21 * * -98 i 287 i i 14 : 150 , 45 i ! * ! * * 378 58 -I I nl -119 55 SUMMARY TABLES Table 4. BUDGET AUTHORITY AND OUTLAYS BY AGENCY-Continued ( In millions of dollars) Budget authority Outlays Description 1967 1968 1969 1967 1968 1969 actual estimate estimate actual estimate estimate 3,879 19 2. 579 10 -114 3. 565 21 1,460 12 -114 Loan account-Continued Department of Housing and Urban Development_ _________ Department of the In~erior ______ Department of Labor ___________ Treasury Department_ __________ General Services Administration __ Veterans Administration ________ Other independent agencies ______ 5,947 13 114 --- * * -3 590 2. 136 -46 555 1.615 * -41 302 I, 211 2,098 24 114 * -3 490 I. 587 ----- --~- Total, loan authority and net lending ______________ 7,174 10. 618 * -46 370 I. 587 * -41 268 I. 365 ---- ---- 4.618 5. 176 5,779 ----- 3,265 ---- Total budget authority and outlays: Legislative Branch _____________ The Judiciary __________________ Executive Office of the President_ Funds appropriated to the President_ _______________________ Department of Agriculture ______ Department of Commerce _______ Department of Defense--Military ________________________ Department of Defense-Civil__ Department of Health, Education, and Welfare _____________ Department of Housing and Urban Development_ _________ Department of the Interior ______ Department of Justice __________ Department of Labor_ __________ Post Office Department_ ________ Department of State ____________ Department of Transportation ___ Treasury Department_ __________ Atomic Energy Commission _____ General Services Administration __ National Aeronautics and Space Administration _______________ Veterans Administration ________ Other independent agencies ______ Allowances for: Civilian and military pay increase _____________________ Contingencies ________________ Undistributed intragovernmental payments. Government contributions for employee retirement_ _______ Interest received by trust funds_ 261 91 29 272 96 31 295 103 33 240 88 28 274 95 32 285 102 33 5,428 7,928 I. 041 4. 830 7,800 961 6, 143 7,530 I. 027 4,872 5,828 738 5,076 6,705 782 5,424 7, 167 853 72. 287 72. 755 I. 358 79, 116 1. 307 67,465 1.310 73,695 I. 378 76,657 I. 343 41,640 45,673 51,370 35. 153 40,859 45,769 7,368 656 406 4,692 1,215 402 6,262 13,083 2,199 113 5,703 863 462 4,772 I, 174 399 6,696 14,456 2,509 316 5,342 857 542 4,836 920 428 6,525 15,410 2,755 330 2. 793 529 409 3,361 1,141 419 5,428 13,098 2,264 131 4,551 779 444 3,876 1,087 428 5,753 14,461 2,333 389 3,216 923 3,800 767 439 6,282 15,425 2,546 493 4,966 6,929 8,231 4,587 7,828 7,397 4,369 7,790 7,595 5,423 6,846 4,870 4,803 7,139 5,185 4,573 7,382 5,127 ------- 100 1,600 350 -1. 913 -2. 678 -2. 007 -3.042 I. 357 I --------- --------- -1, 735 - 2. 287 --·--150-1 -1. 913 -2. 678 1,600 ------550 --------- -2. 007 -3.042 -1.735 -2. 287 555 ----- ----1-------11----1---- Total, budget authority and outlays __________________ 182,562 'Less than $500 thousand, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 186,499 201.723 158,414 175,635 186,062 56 THE BU DGET FOR FISCAL YEAR 1969 Table 4. BUDGET AUTHORITY AND OUTLAYS BY AGENCY- Continued ( In millions of dollars) Budget authority Description 1967 a ctual 1968 c1timatc 1969 estimate Outlays 1967 actual 1968 estimate 1969 estimate - - - - - -MEMORANDUM Portion requiring current action by Congress ____ _____ __ __ ________ _ 135,432 Portion not requiring current action by Congress __ _______ ______ 58,667 Deductions for : lnterfund and intragovernmental transactions ___ __ ____ ___ _____ - 6, 589 Applicable receipts from the public ____ __________ __ __ . . _._ - 4, 948 Total. budget authority ____ _ 182, 562 1969 128,400 141 , 496 69,944 73,085 - 7, 415 - 8, 240 - 4, 430 - 4,618 186, 499 201 , 723 Budget - Relation of Authorizations to Outloys • New Authority Recommended For 1969 201.7 • To be spent in 1969 131.3 THE BUDGET Unspent Authorizations .-.:...:::;___ _ _ _ _ _ _ _~__, Enacted in Prior Years 222.3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • -=------,.-------,,-- • Outlays in 1969 186.1 57 SUMMARY TABLES Table 5. BUDGET AUTHORITY REQUIRING CURRENT ACTION BY CONGRESS (in millions of dollars) 1968 estimate 1967 Description Supple- enacted mitted Later trans- herein mittal Trans- Total mental needed Enacted Legislative Branch .. _... The Judiciary .......... Executive Office of the President ............ Funds appropriated to the President. ........ Department of Agricul. ture ................. Department of Com. merce ............... Department of De. fense-Military ....... Department of De. fense-CiviL ........ Department of Health, Education, and Wei. fare •................ Department of Housing and Urban Development. ............... Department of the lnte• rior ................. Department of Justice ... Department of Labor ... Post Office Department .. Department of State .•.. Department of Trans• portation ............ Treasury Department. .. Ato~i~ Energy Com. 1969 estimate 271 90 277 94 4 1 282 95 306 101 29 31 * 31 33 Total 1 306 102 - -- - - - - - - 33 ------ 5,112 4,718 i 10 4,728 5,7631 7,734 6,411 52 6,463 7,300 873 763 8 771 825 - -- - - - - - 825 71,943 72,112 800 72,912 79,182 75 79,257 1,391 1,383 11 1,394 1,345 12,617 12,858 1,604 14,463 15,305 83 15,388 6,402 3,330 25 3,356 3,387 40 3,427 1,586 408 638 1,215 395 1,592 417 625 962 389 I 29 47 29 212 1 1,621 465 654 1,174 390 1,724 465 730 920 418 ----------------- 742 920 418 6,204 931 I, 511 921 I 221 13 I, 732 934 2,736 85 I, 016 --------- 2,821 I, 016 2,199 2,5091 ......... 2,509 2,755 --------509 --------- 2,755 m1ss10n ___ ___________ General Services Ad. ministration .......... National Aeronautics .. and Space Admm,s• tration .............. I Veterans Administration. I Ot~er independent agen. 656 I i 570 I 4,968 6, 598 I ! 4,589 7,499 574 4 : I i 7 150 I 1,345 --------- 1,724 --------- 545 80 11 509 150 9 4,370 7,537 30 I, 672 1.600 I, 600 550 4,370 7,528 1,510 CteS • • • . . . . . . . . . . . . . . ' 3,174 28 I, 538 I 1,642 Allowances for: Civilian and military pay increase..•..... ········- .. ·-···- -········'·-------·1····-···· Co;::~n:::~~~·~~~·I··---·-·- ··-·---·· 7,307 : i 4, 5891 7,575 76 6,329 566 5_5_o_, . _ . _._-_··_·_·_-, _ _ 1 thority requiring , current action by Congress_. __ .... · [ 135,432 'Less than $500 thousand. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i ' 1 125, 073 3, 327 j 128, 400 j 138, 359 1 3, 1361141, 496 58 THE BUDGET FOR FISCAL YEAR 1969 Table 6. RELATION OF BUDGET AUTHORITY TO OUTLAYS (In millions of dollars) ------- - - - - - -------------- ----------------·-·---~-- 1967 1968 1969 actual estimate estimate Budget authority requiring current action by Congress: Enacted or transmitted herein: Appropriations _________________________________ _ I 122,542 Authorizations to spend debt receipts ____________ _ 7,742 Contract authorizations _________________________ _ 5, 1IO , Reappropriations and reauthorizations___ __ _ ____ _ 38 Transmitt~ ~eparately: Appropnat1ons _________________________________ _ ------ -----Contract authorizations_ __ ____ _ ----- -----Total, budget authority requiring current action by Congress ( table 5) _ _ _________ ___ ______ _ 135,432 Budget authority becoming available without current action by Co'!gr<:-5s: Appropriations ___________________________________ _ Authorizations to spend debt receipts ________________ _ Contract authorizations ____________________________ _ Offsets in determining totals (table 12): lnterfund and intragovernmental transactions _________ _ Applicable receipts from the public___ _____________ __ I 54,451 1,264 2,952 I 120,922 3,801 320 30 133,960 2,552 1,848 ------ -- 3,141 186 3,051 85 128,400 141,496 1 I -6,589 -4,948 1 58,517 2,819 8,608 -7.415 -4,430 1 64,964 2,133 5,989 -8,240 -4,618 1-----1-----1----- I I Total, budget authority for the year ( tables 3 and4) ____________________ - ----- --------- 186,499 201,723 121,228 -1, 169 -134,490 134,490 -2.467 -140,063 140,063 -1,550 -145,672 -913 -957 -1.429 957 1,429 1,462 168,175 178,931 194,597 Brought forward at start of year (table 8) ____________ i Writt_en off, less res~or_ations, in expired accounts _____ -. 1 Deficiency appropnat10ns __________________ ------ ___ , Carried forward at end of year (table 8) __ - - - - - - - - - - - _I 69,387 -208 i 83 -79,0231 79,023 3 -87 6 -82,238 82,238 -65 Outlays ( expenditures and net lending) ___________ i I 158,414 i 175,635 186,062 158,414 { 118,883 56,752 131,282 54,780 158,414 175,635 186,062 182,562 I I Unobligated balances and adjustments: Unobligated balances: Brought forward at start of year (table 8) __ Written off (rescinded, lapsed, etc.) __ _ Carried forward at end of year (table 8) __________ _ Application of new authority to prior obligations: Budget authority of year, obligated previously ______ _ Budget authority of subsequent year, obligated currently __________________________________ - _- _- _ Obligations incurred, net (table 7) _____________ -1- 2 0bligated balances: MEMORANDUM 1 I ---------- -90,708 I Outlays out of current authority________ _________ } Outlays out of prior authority ________________________ _ Total, outlays ___ _ 3 Excludes appropriations to liquidate contract authorizations: Transmitted separately: 1968. $407 million. All other: 1967. $7,302 million; 1968, $6,556 million; 1969, $7,962 million. 2 Includes adjustment of -$6 million for deficiencies in annual accounts. 'Includes adjustment of -$22 million in 1967 and -$6 million in 1968 for deficiencies in expired accounts. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 59 SUMMARY TABLES Table 7. OBLIGATIONS INCURRED, NET (in millions ol dollars) Description 1967 1968 1969 actual estimate eatimate Legislative Branch ___________________________________ 235 The Judiciary _______________________________________ 89 Executive Office of the President_ _____________________ 28 Funds appropriated to the President_ __________________ 3,962 Department of Agriculture ____________________________ 5,921 Department of Commerce ____________________________ 905 Department of Defense-Military _____________________ 72,662 Department of Defense-Civil__ _______________________ 1,250 Department of Health, Education, and Welfare __________ 36,599 Department of Housing and Urban Development_ _______ 3,049 Department of the Interior ___________________________ 508 Department of Justice ________________________________ 400 3,484 Department of Labor_------------------------------Post Office Department_ ______________________________ I, 171 Department of State _________________________________ 393 Department of Transportation ________________________ 5,368 Treasury Department_ ______________ . ________________ 13,068 Atomic Energy Commission ___________________________ 2,272 General Services Administration _______________________ 24 4,984 National Aeronautics and Space Administration _________ Veterans Administration ______________________________ 7,085 Other independent agencies ___________________________ 8,741 Allowances for: Civil\an an~ military pay increase ___________________ -----------ConbngenCJes _____________________________________ -----------Undistributed adjustments to amounts above: -1,735 Government contributions, as employer, for retirement_ -2,287 Interest received by trust funds _____________________ Total, obligations incurred, net_ _________________ -- ~ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 168,175 265 95 31 3,737 7,138 895 74,322 1,376 42,289 2,133 803 463 3,812 I, 174 403 5,930 14,429 2,559 289 4,857 7,183 9,189 292 102 33 4,775 7,413 885 79,346 1,412 47,342 3,153 895 548 3,783 920 429 6,970 15,341 3,024 396 4,367 7,458 8,611 -----------150 1,600 550 -1,913 -2,678 -2,007 -3,042 178,931 194,597 60 THE BUDGET FOR FISCAL YEAR 1969 Table 8. BALANCES OF BUDGET AUTHORITY (in millions of dollars) Start 1967 Start 1968--end 1967 Start 1969end 1968 End 1969 Description Obligated Unobligated Obligated Unobli- Obli- Unobli- gated gated gated Obligated Unobli. gated - - - - - - - - - - 1 - - - - - - - - - - - - ---- - - - ----Legislative Branch .. _. ______ _ 31 31 25 43 The Judiciary ________ ... _.... 7 .... -·. 8 ··----Executive Office of the Presi5 5 dent. .... _._-------·- ____ _ * Funds appropriated to the President..._ ..... _____ ... . 7,840 7,510 7,992 7,450 Department of Agriculture ... . 5,405 912 5,538 2,596 Department of Commerce_ ... . 952 260 1,136 369 Department of Defense-Military. _. _.. _.. ·--· ........ . 26,891 15,781 32,072 15,097 Department of Defense-Civil. 319 169 290 236 Department of Health, Education, and Welfare.·--·----- 4,983 23,055 6,402 28,027 Department of Housing and Urban Development._ ..... . 5,260 9,911 6,331 10,347 Department of the Interior __ .. 667 410 834 440 Department of Justice. _..... _ 37 38 32 37 Department of Labor_._._._ .. 384 9,572 495 10,782 Poat Office Department.. _. _.. 547 580 * * Department of State ........ . 102 37 33 82 Department of Transportation. 7,337 2,539 7,271 3,408 94 30 100 Treasury Department. .•...... II Atomic Energy Commission ... I. 128 394 I, 138 319' General Services Administration ..................... . 383 277 279 352 National Aeronautics and Space Administration....... 2,261 332 1,820 312 Veterans Administration...... 812 8,373 1,047 8,126 Other independent agencies.... 3,946 41,599 5,545 46,505 Allowances for: Contingencies.. * 18 40 9 ------- 27 32 9 ------- 4 * 4 * 7,422 6,025 1,146 7,037 2,700 176 8,105 6,322 1,270 7,054 2,348 180 32,889 12.664 35,585 12,310 325 178 427 45 7,751 31,688 9,294 35,750 5,861 13,678 374 1,013 56 31 432 11,741 667 ------70 15 7,412 4,108 505 3 270 1,364 6,402 15,277 1,141 238 102 21 415 12,794 820 ------72 2 8, IOI 3,663 459 I 179 372 1,877 1,091 39 8,485 6,074 46,462 50 ...... . 1,842 ------83 306 1,672 39 I, 140 8,714 7. 166 46,899 250 ------· - - ---------1·-----·1------- Total, balances carried forward_ ............ 69,387121,228 79 023,134,490 82,238!140,063 90,708145,672 • Leu than $500 thousand. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 61 SUMMARY TABLES Table 9. MEANS OF FINANCING AND OUTSTANDING DEBT (In millions of dollars) Deacription 1967 1968 1969 actual estimate estimate BUDGET FINANCING Borrowing from the public: Nonbank investors _________________________________ Commercial banks ____ .. ____________________________ Federal Reserve banks ______________________________ -1,403 405 4,549 Total, borrowing from the public _________________ 3.551 20,840 8,000 813 410 226 4,858 -1.018 173 Oth~r ~eans of ~ncing the budget deficit: Se1gruorage on coma ________________________________ Decrease or increase ( - ) in available cash and monetary assets ______________________________________ Increase or decrease ( - ) in liabilities for: Checks outstanding (net of items in transit) _________ Deposit fund balances ____________________________ 657 -1,056 Total, other means of financing __________________ Total, budget financing _________________________ ------------ ----------- -428 -445 5,272 -1.035 -46 8,823 19,805 7,954 1967 1968 1969 estimate estimate 1966 actual actual Groaa Federal debt: Public debt (issued by Treasury) ________ Agency debt (issued by agencies) _______ 316,098 13,375 322,893 18,451 344,094 25,899 356,671 30,495 Total, gross Federal debt_ __________ 329,473 341,343 369,993 387,167 Holdings by federally administered funds: Public debt__ _________________________ Agency debt_ _________________________ 63,697 167 70,537 1,647 77,191 2,802 85,573 3,594 Total, holdings by federally administered funds _____________________ 63,864 72,184 79,993 89,167 Net, Federal securities held by the public __________ - - - - - - - - - - - - - - - - 265,609 269,160 290,000 298,000 316,098 322,893 344,094 356,671 3,810 3,328 2,937 2,237 462 266 512 262 4,568 255 4,632 250 320. 102 326,471 351.344 363,290 OUTSTANDING DEBT AT END OF YEAR COMPARISON OF DEBT WITH PUBLIC DEBT LIMITATION AT END OF YEAR Public debt_ ____________________________ Portion of: Public debt issued to International Monetary Fund and international lending organizations ____________________ Agency debt subject to limitation on public debt__ _______________________ Public debt not subject to limitation ( - ) _ Total, debt subject to public debt limitation, end of year 1 __________ I The applicable public debt limitation, are: $328 billion from July i, 1965; $330 billion from July I. 1966; $336 billion from Mar. 2, 1967; and $358 billion from July 1, 1968. The last limitation also coven certificates of participation i11ued in 1968; in addition. a temporary increase of $7 billion is provided from July 1, 1968, to June 29, 1969, and each year thereafter. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 62 THE BUDGET FOR FISCAL YEAR 196 9 Table 10. EMPLOYMENT (FULL-TIME PERMANENT) IN THE EXECUTIVE BRANCH As of Juno Dcacription 1967 1968 actual estimate 1969 estimate Defense and Post Office: Department of Defense, Military and Military Assistance 1 _ I , 193,657 Post Office Department________________________________ 528,254 1,220,500 550,600 Subtotal_________________________________________ I, 721,911 1,771,100 ---------- ----·------- I 1,223,500 568,400 1,791,900 -------- - Civilian agencies other than Post Office: Department of Agriculture ____________________________ _ Department of Commerce _____________________________ _ Department of Defense, Civil 2 ________________________ _ Department of Health, Education, and Welfare __________ _ Department of Housing and Urban Development_ _______ Department of the Interior_ ___________________________ _ Department of Justice ________________________________ _ Department of Labor _________________________________ _ Department of State _________________________________ _ Agency for International Development_ _______________ _ Peace Corps _______________________________________ _ Department of Transportation _________________________ _ Treasury Department_ _______________________________ _ Atomic Energy Commission ___________________________ _ General Services Administration _______________________ _ National Aeronautics and Space Administration_. ________ _ Veterans Administration. _____________________________ _ Other agencies: Selective Service System ____________________________ _ Small Business Administration _______________________ _ Tennessee Valley Authority _________________________ _ The Panama Canal__ _______________________________ _ United States Information Agency ___________________ _ Miscellaneous agencies.. ____________________________ _ 85,723 25,900 31,980 97,792 14,250 60,606 33,176 9,461 26,849 16,713 1,240 55.187 81,591 7,013 37,117 33,726 150,225 85,800 26,200 32,200 105,400 14,800 61. 100 33,650 9,700 26,900 17,600 1.400 57. 700 82,000 7. 150 38,300 32,400 152,100 86,300 27,000 32,600 108,800 16,200 63,500 34,200 10,700 27,000 18,100 1,600 59,600 85,500 7,300 39,700 32,600 154,000 7,085 4,142 11,903 14,571 11,686 32,204 7,200 4,300 12,350 14,950 11,650 33,550 6,900 4,700 12,700 15,000 11,700 35,100 --·------- --------- Subtotal_ _______________________________________ _ Allowance for contingencies 850,140 3_______________________________ • _______ _ Total__ _________________________________________ 2,572,051 868,400 890,800 2,400 4,800 2,641,900 2,687,500 Notc.-Thc figures for 1968 and 1969 includ~ tentative estimates for employment under appropriations proposed for later transmittal. More detailed information on employment is contained in Special Analysis F on pages 529 to 535. 1 In addition, there arc approximately 42,000 civilian technicians. employed by the various States and the Commonwealth of Puerto Rico, performing operation and maintenance support services for the Army and Air Force National Guard. Legislation is being proposed to convert these technicians to direct Federal employee status in fiscal year 1969. Salaries of these technicians have been and will continue to be paid by the Federal Government. 2 Employment of the United States Soldiers" Home is included under "Other agencies" and excludes member-employees. 3 Subject to later distribution. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PART 3 RECEIPTS 63 ANALYSIS OF RECEIPTS This section of the budget presents the estimates of revenues and discusses the economic assumptions on which the estimates are based. Also included is a discussion of legislative proposals which affect Government revenues. CURRENT ECONOMIC OUTLOOK AND PROPOSED TAX LEGISLATION The tax system, through its effect on after-tax income, influences how much individuals and businesses buy and save. In this way, Federal tax policy, along with expenditure and monetary policy, affect production, employment, and purchasing power in the Nation. The present economic expansion, the longest in our history, about to enter its eighth year, is due in part to the effective use of tax policy. In early years of this expansion, the slack existing in the economy demanded that prime attention be given to the question of how to employ fully our physical and human resources. Since late 1965, however, the problem shifted from one of slack and under-utilization of resources to one of maintaining full employment without inflation. Present levels of prices and interest rates, and the overall rate of economic growth suggest that the economy needs more fiscal restraint. To complement this budget's stringent policy on controllable outlays, a three-part tax program is being recommended. It is in the same form as proposed last year. • A temporary 10% surcharge on individual and corporate incomes; • The acceleration of certain corporate income tax collections; • A postponement of the reduction in excise rates on automobiles and telephone service, scheduled under existing law for April 1, 1968. 64 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 65 RECEIPTS With these fiscal measures, the inflationary pressures are expected to ease and economic growth continue. Thus, the basic economic assumptions underlying the revenue estimates are: ECONOMIC ASSUMPTIONS (Calendar years. In billions) 1966 actual Gross national product_ ______________________ _ Personal income _____________________________ _ Corporation profits before tax _________________ _ $743.3 S84.0 83.8 1967 preliminary $785.) 626.3 80.1 1968 e■ timate $846 675 87 Revenue ejfect of proposed legislation. -The 10% income tax surcharge is proposed to become effective January 1, 1968, for corporations and April 1, 1968, for individuals. Increased tax collections in fiscal 1969 from the surcharge on individuals will average about one extra penny on each dollar of income. In total, the added' income tax receipts, including those from the acceleration of corporation income taxes, would be $2. 7 billion in fiscal 1968 and $10.2 billion in fiscal 1969. The recommended extension of present automobile and telephone excise tax rates would also prevent the loss of $0.3 billion in 1968 and $2. 7 billion in 1969 from reductions scheduled under present law. The surcharges and excise tax extensions will expire on June 30, 1969. Transportation and other user charges are also being recommended, with an estimated increase in revenues of $0.3 billion in 1969. These revenue proposals would raise budget receipts over their yield under existing law by $3 billion in 1968 and $13.2 billion in 1969. The economic projections on which the tax estimates are based assume enactment of the revenue legislation. If the legislation were not enacted, inflation could push the dollar value of national output and income higher, with the result that the increase in revenues under present laws could be somewhat higher than implied by the above economic assumptions. 300-000 0-68----li https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 66 THE BUDGET FOR FISCAL YEAR 1969 ESTIMATED EFFECT OF PROPOSED LEGISLATION ON BUDGET RECEIPTS [In million1] Fiacal year Propoaal 1969 Income taxes: Proposed surcharge: Individual income taxes _______________________________________ _ Corporation income taxes _____________________________________ _ Acceleration of corporation tax payments __________________________ _ $930 970 $6,920 2,880 800 400 Subtotal, income tax proposals _______________________________ _ 2,700 10,200 Excise taxes-extension of present rates: Automobiles ___________________________________________________ _ Telephone service _______________________________________________ _ 190 1,500 116 1.160 Subtotal, excise extensions ___________________________________ _ 306 2,660 User charges: 1 Transportation: Aviation services _______________________________________________________ _ Waterways _____________________________________________________________ _ 40 7 Highways-increase diesel fuel tax and apply graduated use tax on heavy trucks __________________________________________________________ _ Other ____________________________________________________________________ _ 239 II Subtotal, user charges•-------------------------------------- __________ _ 297 Total, revenues under proposed legislation______________________ I Excludes charges they apply. which are offset against the expenditures of the 3,006 programs to 13,157 which Revenue effect of changes in the tax structure.-Two changes in the tax structure are scheduled under existing law: • automobile and telephone excises would be reduced on April 1, 1968, and • social security taxes will rise from expansion of the covered wage base (effective January 1, 1968) and a hike in the combined payroll tax rate (effective January 1, 1969). The proposed tax program, as mentioned above, includes legislation to defer the change in excise taxes. The change in revenue resulting from proposed changes in the tax structure, at the projected levels of personal income and business profits, can be calculated as follows: /968 eaiimaie /969 utimate Increase in revenues from proposed legislation {above) _____________________ _ Changes in revenues under provisions of existing law: Reductions ( - ) of present excise tax rates (proposed for extension) ______ _ Scheduled increases in social security taxes _____________________________ _ $3.0 $13.2 -0.3 0.3 -2.7 3.3 Total, increase in revenues due to proposed changes in tax structure____ _ 3.0 13.8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 67 RECEIPTS ANALYSIS OF RECEIPTS BY SOURCE Individual income t,ax receipts are estimated at $80.9 billion in fiscal 1969, $13.2 billion higher than in 1968. Higher personal incomes will account for a little over one-half of the increase and the remainder will result from the 10% surcharge. BUDGET RECEIPTS BY SOURCE (In millions) Actual. 1967 Description Individual income taxes ____________________________________ _ Corporation income taxes __________________________________ _ Employment taxes ________________________________________ _ Unemployment insurance __________________________________ _ Premiums for other insurance and retirement_ ________________ _ Excise taxes ______________________________________________ _ Estate and gift taxes ______________________________________ _ Customs _________________________________________________ _ Miscellaneous receipts _____________________________________ _ Total, budget receipts _______________________________ _ Estimate 1968 1969 $61,526 33,971 27,823 3,652 1,853 13,719 2.978 1,901 2. 168 $67,700 31,300 29,730 3,660 2,049 13,848 3,100 2,000 2,443 $80,900 34,300 34,154 3,594 2,275 14,671 3,400 2,070 2,744 149,591 155,830 178,108 MEMORANDUM (Excluded above; offset against expenditures) 8,240 7.415 4,430 4,617 --·-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - lnterfund and intragovernmental transactions ________________ _ Proprietary receipts from the public _________________________ _ 6,589 4,948 Single people who earn up to $1,900 and a married couple with two children who earn $5,000 or less will pay no additional tax. The effect on certain taxpayers is illustrated in the following table: INCOME TAX OF MARRIED COUPLE WITII TWO CHIIDREN ( Calendar years 1963. 1967-69( Wage income $3,000 ________________________________________ _ $5,000 ________________________________________ _ $7,500 _________________ -- ___________ -------- _-$10,000 ___ --- _-- _---- _-- ____ ---- ---- _------ ---$15,000 _______ -- -- _--- -- -- ----------- _------ _-$25,000 __________ ---- ___ -- -- ____ -- ____ ---- -- --- 1963 $65 420 877 1,372 2,486 5,318 1967 $4 290 686 I, 114 2,062 4,412 1968• $4 290 737 I, 198 2,217 4,743 1969' $4 290 720 I, 170 2. 165 4,633 Note.-Aaaumes minimum standard deduction or deductions equal to 10% of income. whichever is greater. 1 2 Assumes effective rate of surcharge is 7.S% due to Apr. I. 1968. elfective date. Auumes effective rate of surcharge i1 S% due to termination date of June 30. 1969. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 68 THE BUDGET FOR FISCAL YEAR 1969 Corporation income tax receipts are expected to be $34.3 billion in fiscal 1969, up $3 billion over 1968. The increase is due to the expected rise in corporation profits as well as the full year effect of the 10% surcharge. As part of the continuing effort to put tax collections on a current basis, two further accelerations in corporation tax payments effective in fiscal year 1968, are being proposed: • The percentage of a corporation's estimated tax for any given calendar year to its final liability will be increased to 80 from 70. The 80% requirement is already applicable to those individuals who are required to pay taxes on the basis of their estimated tax liabilities. Increased revenue from this proposal would be $400 million in fiscal 1968. • The present exemption on the first $100,000 of corporate tax liability from the requirement of payment on a current estimated basis will be eliminated over a 5-year period. This change would put corporations on the same tax basis as an unincorporated proprietor who now must make estimated tax payments on his entire liability over $40. The revenue increase under this propo·sal is $400 million in fiscal 1968 and $400 million in 1969. Employment taxes are expected to yield $34.2 billion in 1969, which is $4.4 billion above 1968. This increase is a result of: • An expected increase in the number of people (and the dollar volume of payrolls) covered by the social security system, as the economy continues to expand. • An increase in wages subject to tax from $6,600 to $7,800, effective January 1, 1968, under present law. This increase will have little effect on fiscal year 1968 receipts because most contributors will not reach a $6,600 salary for the year until after June 30. • An increase in the combined tax rate on employers and employees from 8.8% to 9.6% as of January 1, 1969, under present law. (This includes an increase in the combined tax rate on employers and employees from 1% to 1.2% for health insurance for the aged.) Excise tax receipts in fiscal 1969 are expected to be $14.7 billion, about $800 million higher than in 1968. Proposed transportation user charges account for around $300 million of this increase. Collections will also increase from excise taxes reflecting increased sales of the products and services involved. The estimates reflect the effect of the legislative proposal to retain, until July 1, 1969, the telephone excise tax at 10% and the automobile excise tax at 7%. Under present law the telephone tax is scheduled to be decreased to 1% on April 1, 1968, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECEIPTS 69 and be repealed on January 1, 1969. The automobile tax is scheduled to decline to 2% on April 1, 1968, and to 1% on January 1, 1969. User charges.-Legislation is being proposed in several areas to relieve the general taxpayer of the burden of financing programs that provide special benefits to certain individuals and groups. The user charges program also is being extended by administrative action where legislative authority exists. All present charges are reexamined regularly to assure that they adequately reflect the costs incurred. In the transportation area, legislation has been proposed to bring the payments by operators of heavy trucks closer to a fair share of highway cost!!; receipts to the Highway Trust Fund would be augmented by raising the tax on diesel fuel and by increasing the use tax on heavy vehicles according to a scale graduated by weight. Legislation will be proposed for additional user charges to help cover commercial and general aviation shares of the cost of the Federal airway system, following the completion of systems studies now underway. A user charge of 2 cents per gallon, increasing to 10 cents per gallon over the next 5 years, is proposed on fuel used by vessels navigating the inland waterways. CHANGES IN THE RECEIPTS TABULAR PRESENTATION Table 11 is different from the tables of budget receipts which have been shown in previous budget documents. It covers both Federal funds and trust funds, and adds to the total of budget receipts on the basis of the general concept recommended by the Commission on Budget Concepts. Thus table 11 includes only essenf:iolly gooernment,al, receipts, and, except for refunds which are shown explicitly, each entry is shown on a net basis. (See the introduction to Part II of this volume and Special Analysis A for discussion of the new budget concepts.) Some items which in previous years have been included in table 11 as receipts are now shown in table 12. They are of two types: • Proprie;tary receipts jr<nn the public.-These are being treated, as the Commission recommended, as offsets to expenditures. • Interfund and intragooernment,al, transactions.-These items are payments by one agency or fund of the Federal Government and receipts of another in exactly the same amount. They do not affect the budget deficit, and are excluded from both outlays and receipts. Seigniorage on silver, which formerly was included as a receipt is now considered as a means of financing rather than as Government income. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 70 THE BUDGET FOR FISCAL YEAR 19 6 9 Table II. BUDGET RECEIPTS BY SOURCE, NET (in millions of dollars) 1967 1968 1969 actual estimate estimate Individual income luea: Withheld ________________________________________ _ Other _____________________________________________ _ 50,521 18,850 56,400 20,325 67,300 23,255 Grou individual income taxes __________________ _ 69,371 76,725 90,555 Refunds _________________________________________ _ -7,845 -9,025 -9,655 Net individual income taxes ____________________ _ 61,526 67,700 80,900 Corporation income tuea ____________________________ _ Refunds _________________________________________ _ 34,918 -946 -1, 100 32,400 35,200 -900 Net corporation income taxes ___________________ _ 33,971 31,300 34,300 Employment taxes (trust funds): Federal old-age and survivors insurance 1 ____________ _ Federal disability insurance 1 _______________________ _ Federal hospital insurance 1 ________________________ _ Railroad retirement accounts _______________________ _ Refunds __________________________________________ _ 22,354 2,269 2,689 793 -282 22,730 2,764 3,635 866 -265 25,569 3,538 4,390 957 -300 Total, employment taxes _______________________ _ 27,823 29,730 34,154 2. 917 595 146 -6 2,900 621 144 -6 2,800 659 142 -6 3,652 3,660 3,594 1-----1---Unemployment insurance (trust funds): State taxes deposited in Treasury 2 __________________ _ Federal unemployment tax receipts 2 ________________ _ Railroad unemployment tax receipts 1 _______________ _ Refunds _________________________________________ Total, unemployment taxes.. ___________________ _ -----1---Premiuma for other insurance and retirement (trust funds): Federal supplemental medical insurance______________ _ Fed!ral _employees retirement funds-employees contnbutions ______________________________________ _ 647 714 895 1,206 I, 335 1,380 Total, premiums for other insurance and retirement_ I, 853 2,049 2,275 31 1,414 28 10 4 -10 32 30 1,645 1,545 29 30 12 II 6 5 2 ----------- 3, l06 525 543 190 112 69 108 3,030 466 527 198 Excise taxes: Manufactltrers' excise taxes: Federal funds: Gasoline _____________________________________ _ Passenger automobiles ___________ --·· ___________ _ Firearms, shells, and cartridges _________________ _ Fishing rods, creels, etc ________________________ _ Pistols and revolvers __________________________ _ All other, including repealed ____________________ _ Trust funds: Gasoline ___ --- ________ -- --- ---- ------ ----------- Automobile trucks, buses, and trailers_____________ _ Tires, innertubes, and tread rubber________________ _ Diesel fuel used on highways 3____________________ _ Use-tax on certain vehicles•--- ________________ - - -Truck parts and accessories ______________________ _ Lubricating oils- ________________________________ _ 111 75 76 3,128 497 554 310 255 81 78 1-----1-----1- Total, manufacturers' excise taxes____ _________ - - See footnote■ at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6,129 6, 105 6,628 71 RECEIPTS Table 11. BUDGET RECEIPTS BY SOURCE, NET (in millions of dollar•)-Continued 1967 1968 1969 actual estimate estimate Excise taxes:-Continued Alcohol taxes: Distilled spirits _________________________________ _ Rectification tax ________________________________ _ Wines _________________________________________ _ Special taxes in connection with liquor occupations __ _ 2,967 941 25 121 22 3,095 970 25 130 22 3,220 1,000 27 135 22 Total, alcohol tax _____________________________ _ 4,076 4,242 4,404 2,023 2,115 55 1 1 1 1 2,150 55 1 1 Total, tobacco taxes ___________________________ _ 2,080 2, 172 2,207 Documents _______________________________________ _ 68 35 Retailers' excise tax (repealed) _____________________ _ 4 --------------------- Beer ___________________________________________ _ Tobacco taxes: Cigarettes (small) _______________________________ _ Cigars (large) __________________________________ _ Cigarette papers and tubes _______________________ _ All other _______________________________________ _ 55 Miscellaneous excise taxes: 1,180 General and toll telephone and teletype service _____ _ 1, 102 Transportation of persons by air_ _________________ _ 170 204 Other aviation user charges_ ___________ __ Fuel used on inland waterways ____________________________________________ _ Wagering taxes, including occupational taxes________ 6 6 104 108 Sugar tax_______________________________________ Coin-operated gaming devices______________________ 17 17 Interest equalization tax__________________________ 20 20 Foreign insurance policies_________________________ 16 19 All other miscellaneous excise taxes________ _________ 7 3 1,240 230 40 7 6 109 17 20 21 2 1,692 Total, miscellaneous excise taxes ________________ _ 1,442 Undistributed depositary receipts and unapplied collections____ _____________ ___ __________ ___ 315 Gross excise taxes _____________________________ _ 14, 114 14, 112 14,931 Refunds ___________ - - ____ - - - - - - - - - - - - - - ---- - -- - - -395 -264 -260 Net excise taxes ______________________________ _ 13,719 13,848 14,671 3,014 -36 3,140 -40 3,440 -40 2, 978 3, 100 3,400 Net estate and gift taxes________________________ 1,557 - -- ------- 1-----1-----1- Cuatoms_ ___________________________________________ Refunds__________________________________________ 1, 972 - 71 2,072 -72 2,142 -72 Net customs _________________________________ _ 1,901 2,000 2,070 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 72 THE BUDGET FOR FISCAL YEAR 1 9 6 9 Table 11. BUDGET RECEIPTS BY SOURCE, NET (in millions of dollars)~Continued 1967 actual 1968 1969 estimate estimate Miscellaneous receipts: 4 Miscellaneous taxes ______________________________ - - 36 38 40 Deposit of earnings, Federal Reserve System __________ I, 805 2, 175 2,450 Bullion charges ____________________________________ 2 46 51 31 25 20 37 27 29 23 5 14 Fees for permits, regulatory and judicial services: Immigration, passport, and consular fees ____________ Patent and copyright fees _________________________ Registration and filing fees ________________________ Fees for legal and judicial services __________________ Migratory bird hunting stamps ____________________ Miscellaneous fees for permits, licenses, etc __________ 20 5 II 33 26 25 22 5 8 Total, fees for permits, regulatory and judicial services _____________________________________ 112 119 135 Fines, penalties, and forfeitures ______________________ 173 24 26 War reparations and recoveries under military occupation ____________________________________________ 36 36 Gifts and contributions _____________________________ 4 5 37 ---5 Total, miscellaneous receipts ____________________ 2,168 2,443 2,744 149,591 155,830 178,108 111,779 37,812 116.005 133,271 44,837 Total, budget receipts_ Of which: Federal funds ___________________________________ Trust funds _____________________________________ 39,825 1 A small part of each of these items comes from the coverage of certain State and municipal employees. These amounts were formerly included in ••Deposits by States." The amounts are as follows: /967 /968 /969 Federal old-age and survivors trust fund______________ I, 835 2, 033 2, 300 F cderal disability insurance trust fund_______________ 183 243 311 Federal hospital insurance trust fund_________________ 206 324 392 2 "Deposits by States" are State payroll taxes which cover the benefit part of the program. The Federal payroll tax covers administrative costs at both the Federal and State level. Railroad unemployment tax receipts cover both the benefits and administrative costs of the program for the railroads. 3 These taxes which arc usually classified as miscellaneous excise taxes have been included with other high way taxes. • Trust fund amounts in miscellaneous receipts are: 1967, 43: 1968, 47: 1969, 51. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 73 RECEIPTS Table 12. RECEIPTS OFFSET AGAINST BUDGET AUTHORITY AND OUTLAYS (in millions of dollars) 1967 1968 1969 actual estimate estimate INTERFUND AND INTRAGOVERNMENTAL RECEIPTS General fund contributions to insurance programs: Old-age and survivors insurance _____________________________________________ _ Military service credits, various programs________________ 122 123 Supplementary medical insurance_______________________ 623 739 Hospital insurance____________________________________ 327 541 Veterans life insurance_________________________________ 7 5 226 123 895 465 5 Total, general fund contributions to insurance program_ 1,078 1,407 I. 714 Government contributions to employee retirement _________ _ 1,735 1,913 2,007 Interchange receipts of trust funds: Hospital insurance ___________________________________ _ Railroad retirement __________________________________ _ Railroad unemployment insurance _____________________ _ Federal employees' retirement_ ________________________ _ 16 638 29 I 44 566 29 I 55 625 29 I Total, interchange receipts of trust funds ___________ _ 684 640 710 22 ----------- Miscellaneous governmental receipts: Forfeitures, claims __ _ JO Miscellaneous proprietary receipts: Interest on Government capital in enterprises ___________ _ 672 653 676 Interest received by trust funds ________________________ _ 2,268 2,639 3,017 Dividends and other earnings __________________________ _ 27 27 30 Charges for services and special benefits ________________ _ 103 87 102 Repayments and advances under temporary extended Unemployment Compensation Act of 1961 _____________ 8 ----------- ---------Recoveries and refunds __________________________________________ _ 15 ---------- Total. miscellaneous proprietary receipts_ ____________ 3,069 3,455 3,800 1-----1------1- 6,589 Total, interfund and intragovernmental receipts_______ 7,415 8,240 i====='=====I,= PROPRIETARY RECEIPTS FROM THE PUBLIC Veterans life insurance ______ _ Seigniorage ___________________________________________ _ 500 496 487 24 16 17 1-----l------1- lnterest: Interest on domestic loans to individuals and private organizations __________________________________________ _ Interest on foreign loans and deferred foreign collections ___ _ Miscellaneous interest collections _______________________ _ 94 184 112 40 105 163 61 Total. interest_ _________________________________ - - 319 329 321 Rents: Rent on Outer Continental Shelf lands___________________ Rent of land and other real property____________________ Rent of equipment and other personal property___________ 596 33 435 33 41 420 33 40 40 162 47 1-----1------1-- Total, rents______________________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 670 508 493 74 THE BUDGET FOR FISCAL YEAR 1969 Table 12. RECEIPTS OFFSET AGAINST BUDGET AUTHORITY AND OUTLAYS (in millions of dollars)-Continued 1967 actual 1968 estimate 1969 estimate PROPRIETARY RECEIPTS FROM THE PUBLIC-Con. Royalties: Royalties on Outer Continental Shelf lands ______________ _ Miscellaneous royalties _______________________________ _ 41 148 169 65 80 172 Total, royalties __________________________________ _ 189 234 252 1-----1-----1---- Sale of products: Sale of timber and other natural land products __________ _ Sale of power and other utilities _______________________ _ Sale of other products ________________________________ _ 229 Total, sale of products ____________________________ _ 507 550 10 12 Fees and other charges for services and special benefits: Ad~ission permi~ and fees ____________________________ _ Busmess concessions __________________________________ _ Charges for administrative and professional services ______ _ Charges for communication and transportation services ___ _ Other fees and charges ________________________________ _ 249 29 247 254 271 281 33 40 574 13 6 124 12 22 21 141 154 Total, fees and other charges for services and special benefits _______________________________________ _ 172 208 207 Sale of Government property: Sale of land and other real property ____________________ _ Sale of equipment and other personal property ___________ _ Sale of scrap and salvage material_ _____________________ _ 1,674 29 61 75 1,391 31 68 1,560 Total, sale of property ____________________________ _ 1,764 1,499 1,658 5 58 4 3 5 3 184 195 193 377 183 JI 20 Realization upon loans and investments: Repayments of investments in Government-owned enterprises _______________ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Repayments from States and other public bodies _________ _ Repayments of domestic loans to individuals and private organizations ______________________________________ _ Repayments on foreign loans and deferred foreign collections_ Repayments on miscellaneous recoverable costs __________ _ Miscellaneous repayments on loans and investments ______ _ Total, realization upon loans and investments _______ _ 12 23 5 31 183 38 115 135 3 2 2 665 502 521 1-----1-----1----- Recoveries and refunds: Recoveries of excess profits and costs ___________________ _ Recoveries under foreign aid programs __________________ _ Other recoveries and refunds __________________________ _ Total, recoveries and refunds ______________________ _ Total, proprietary receipts from the public ___________ _ 10 16 91 33 38 39 16 31 40 139 88 87 4,948 4,430 4,617 ="===sl=====I Total, receipts olfset against budget authority and outlays _______________________________________ _ Of which: Federal funds _______________________________________ _ Trust funds _________________________________________ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11,537 11,845 12,857 3,938 3,215 8,630 3,135 7,599 9,722 75 RECEIPTS Table 12. RECEIPTS OFFSET AGAINST BUDGET AUTHORITY AND OUTLAYS (in millions of dollars)-Continued 1967 1968 1969 actual eatimate estimate MEMORANDUM These receipts are offset as follows in tables of budget authority and outlays: Distributed hy agency and function: Interfund and intragovemmental payments ______________ Proprietary receipts from the public _____________________ Undistributed by agency and function: Government contributions to employee retirement_ _______ Interest received by trust funds: lnterfund and intragovernmental receipts ______________ Proprietary receipts from the public ___________________ Total_ ___________________________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,.586 4,930 2,864 4,391 3,217 4,592 1,735 1,91~ 2,007 2,268 18 2,639 39 3,017 25 11,537 11,845 12,857 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PART 4 THE FEDERAL PROGRAM BY FUNCTION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 77 ANALYSIS OF FEDERAL ACTIVITIES BY FUNCTION This section of the budget presents the major elements of the program recommended for the Federal Government for fiscal year 1969. It describes, for each of 12 major functions served, trends and developments anticipated in existing programs and new programs the Congress is being asked to enact. In line with the recommendations of the President's Commission on Budget Concepts, the tables and textual presentation in this part of the budget reflect several basic changes from previous years. There are three major departures from past practice: • All Federal activities designed to serve a particular purpose are consolidated, with Federal funds and self-financed trust funds combined as appropriate into a comprehensive total. • In each program, "expenditures" and "net lending" are separately identified. • Receipts from the public arising from market-oriented or businesstype activities of the Government are offset against the expenditures for the function to which they relate-thus highlighting the net impact on the budget. In relative terms, the changes being made in accordance with the Commission's report do not significantly alter the functional totals that would have been reported on the "consolidated cash" basis previously used in this part of the budget. However, the size of many of the individual components and the form of their presentation differ considerably from former budgets. SUMMARY In fiscal year 1969, total budget outlays are estimated at $186.1 billion, including $182.8 billion of expenditures and $3.3 billion of net lending. The total compares with overall outlays of $175.6 billion estimated for fiscal year 1968. Expenditures.-National defense programs account for $79.8 billion, or 43.7%, of the estimated 1969 expenditure total. About one-third of defense expenditures are for our operations in Vietnam. Defense expenditures in 1969 are expected to be $3.3 billion higher than in 1968-$1.3 billion of the increase is accounted for by Vietnam, the remainder by other defense programs. Civilian expendit,ures are estimated at $103.0 billion in 1969, and account for 56.3% of total expenditures. • Health, labor and welfare programs ($51.9 billion) make up one-half of total civilian expenditures. The social msurance 78 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79 THE FEDERAL PROGRA.J.vI BY FUNCTION trust funds-chiefly social security, unemployment insurance, and Medicare-account for $39.5 billion of the spending for this category. • Other major social programs-notably education and housing and community development-represent another $5.8 billion in expenditures. These three functional categories combined will account for 56% of civilian expenditures in 1969. They will increase by $6.5 billion between 1968 and 1969, accounting for over two-thirds of the overall rise in civilian program spending. All other expenditures will comprise 24.8% of the estimated total of expenditures and will rise by $3.2 billion in 1969. BUDGET OUTLAYS (Fiscal years. In millions) Function 1967 actual Erpenditarea: National defense _________________________________________ Excluding special Vietnam _______________________________ International affairs and finance ___________________________ Excluding special Vietnam _______________________________ Space research and technology _____________________________ Agriculture and agricultural resources _______________________ Natural resources ________________________________________ Commerce and transportation _____________________________ Housing and community development_ _____________________ Health, labor, and welfare _________________________________ Education _______________________________________________ Veterans benefits and services _____________________________ Interest_ ___ - ___ - _- - - __ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - General government_ _____________________________________ $70,095 (49,961) 4, )JO (3,687) 5,423 3,156 2. 113 7,308 577 39,512 3,602 6,366 12,548 2,452 1968 estimate 1969 estimate $76,491 $79,792 (51,960) (54,008) 4,330 4,478 (3,872) (3,998) 4,803 4,573 4,474 4,412 2,416 2,483 7,996 7,695 697 1.429 46,396 51. 945 4,364 4,157 7,131 6,798 14,400 13,535 2,618 2,827 Allowances: Civilian and military pay increase ________________________ ---------- ---------- 1,600 Contingencies __________________________________________ ---------JOO 350 Undistributed intragovernmental payments: -1,913 -2,007 Government contribution for employee retirement ( - ) _____ -1,735 Interest received by trust funds (-) _____________________ -2,287 -2,678 -3,042 Total expenditures ___________________________________ 153,238 169,856 182,797 Total expenditures, excluding special Vietnam _____________ (132,681) (144,867) (156,533) Net Lending: International affairs and finance ___________________________ Agriculture and agricultural resources ______________________ Housing and community development_ _____________________ All other ________________________________________________ 540 1,221 1,708 1,705 3,257 907 '· 135 1,355 99 Total net lending ____________________________________ 5,176 5,779 3,265 Total outlays ________________________________________ 158,414 175,635 186,062 716 899 675 Total outlays, excluding special Vietnam _________________ (137,857) (150,646) (159,798) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 80 THE BUDGET FOR FISCAL YEAR 1969 Net lending.-The estimated net leriding of $3.3 billion in 1969 represents a reduction of $2.5 billion from 1968. The largest single factor in this decrease is a decline in mortgage purchases under the secondary market operations of the Federal National Mortgage Association. In accordance with the recommendation of the President's Commission on Budget Concepts, the net lending figures do not reflect proceeds from the sales of participation certificates, which are now considered part of the gross Federal debt. Totals for net lending primarily represent the difference between disbursements and repayments of principal on loans in the loan account. Each functional section with major loan programs includes a table showing the gross disbursements and repayments in these programs. In 1969, 75% of the Government's net lending will help promote housing and agriculture programs. Adjustments and allowances.-Apart from the outlays estimated in the functional categories, the budget includes several allowances and adjustments. An estimated $2.0 billion in allowances is provided in addition to the functional figures for (1) the second stage of the pay increase enacted in 1967 for military and civilian personnel and (2) unforeseen contingencies and the possible costs of programs on which detailed, specific proposals have not yet been completely formulated. On the other hand, adjustments are made in arriving at the totals to deduct from the functional figures the contributions of the Government as an employer to Federal employee retirement trust funds, and for the interest received by trust funds on their investments. These adjustments, estimated at $5.0 billion in 1969, are made since the transactions involved occur solely within the Government accounts and do not result in any flow of funds between the public and the Government. The same amounts are deducted from the receipts side of the budget, so that these adjustments do not affect the size of the budget deficit. NATIONAL DEFENSE Our defense forces are stronger today than at any point in our history. They are designed to counter all forms of military threat to this Nation and our allies. This budget provides for all of our essential defense requirements in South Vietnam and elsewhere. Where military and international conditions dictate, vital programs have been expanded. At the same time, stringent standards were applied in the budget review to all proposed outlays. A searching examination was conducted to identify those programs which could be reduced, deferred, or stretched out without reducing overall defense preparedness. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 81 THE FEDERAL PROGRAM BY FUNCTION Substantial economies and management improvements have also been realized through the Defense Department's highly successful Cost Reduction Program. This program will be intensified in 1969 to encourage even greater management improvements. NATIONAL DEFENSE (Fi,cal year,, In million,] Expenditures and net lending Program or agency 1967 1968 1969 actual estimate cati mate Recom~ mended NOA and LA for 1969 I ---------------------1--------- ---- Expenditures: Department of Defense-military: Military personnel: Present programs ________________________________ $19, 787 $21, 800 $22, 770 $23,014 Proposed legislation______________________________ ________ _______ _ 23 23 Operation and maintenance: Present programs________________________________ 19,000 19,800 22,213 22,787 Proposed legislation _____________________________________________ _ 47 52 Procurement__. __________ . __ ___ _____ ___________ 19,012 21,470 23,445 23,254 Research, development, test, and evaluation__________ 7,160 7,200 8,006 7,800 Military construction __________ .___________________ 1,536 1,565 1,430 1,450 Family housing _____________________ . __________ ___ 482 520 570 602 Civil defense________________________ __ __ _________ 100 93 89 77 Revolving and management funds and other___________ 512 1,402 -1,608 13 Military trust funds________________________________ 20 IO 7 7 --- ------ ---- Subtotal, Department of Defense-military 3 _________ 67,466 73,694 76,658 79,116 Suhtotal, excluding special Vietnam _________________ (47,333) (49,163) (50,874) (54,191) Military assistance: Grants and credit sales: Present programs ___________________ . ______ __ ____ 873 550 Proposed legislation _____________________________________________ _ Trust fund 3 _ _ _ _ _ _ _ _ _ ____ _ __ _ _ _ _ ______ _ __ _ _ _ _ _ _ ___ -8 -25 Atomic energy 2 3 __ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ 2,264 2,333 519 6 -70 2,546 420 120 -80 2,755 23 146 64 8 22 Defense-related activities: Stockpiling of strategic and critical materials _________ _ 19 Expansion of defense production_______ ____________ _ -l02 Selective Service System __________________________ _ 58 Emergency preparedness activities ___ . ______________ _ II lnterfund and intra governmental transactions 3 ( - ) ____ _ (-7) Applicable receipts from the public 3 ( - ) _____________ _ -487 19 22 61 12 (-7) -178 (-7) -108 64 6 (-7) -l08 - - - - - - ----1---- Subtotal, expenditures____________________________ 70,095 76,491 79,792 82,317 Suhtotal, expenditure..•, excluding special Vietnam _____ (49,961) (51,960) (54,008) (57,391) Net Lending _____________________________________ _ --- --- ---4 * -3 -2 --- --- --- --- --- Total__ __________________________ . ___________ - I 70,092 76,489 79,789 82,317 Total, excluding special Vietnam ___________________ i(49,958) (51,958) (54,005) (57,391) • Leu than $500 thousand. 1 Compares with new obligational authority (NOA) for 1967 and 1968, a, follows: NOA: 1967, $75,276 million; 1968, $75,780 million. LA: 1967, lesa than $500 thousand; 1968, leu than $500 thou,and. ' Include, both Federal funds and truat funds. 3 Relevant .. lnterfund and intragovernmental transactions" and "Applicable receipts from the public .. have been deducted to arrive at totals. https://fraser.stlouisfed.org 300-000 0--68-6 Federal Reserve Bank of St. Louis 82 THE BUDGET FOR FISCAL YEAR 1969 Total outlays for national defense programs are estimated to increase in 1969 to $79.8 billion, corr pared with $76.5 billion in 1968 and $70.1 billion in 1967. In addition to the cost of the military functions of the Department of Defense, these estimates include outlays for atomic energy and for other activities which diiectly support the defense effort. Expenditures for the Atomic Energy Commission will rise, primarily as a result of increased activity for the design, underground testing, and production of nuclear weapons. The combined outlays of the various defense-related activities of agencies other than the Department of Defense and the Atomic Energy Commission will also rise. Outlays for the expansion of defense production ,Yill increase in large part due to the use of Defense Production Act authority to stimulate the expansion of copper production in the United States. Small increases will be required for the management of the stockpile of strategic materials and for the activities of the Selective Service System. Outlays for the emergency preparedness activities of the Office of Emergency Planning and the Department of Health, Education, and Welfare are estimated to decline slightly from the 1968 level. Department of Defense.-Expenditures for the military functions of the Department of Defense are estimated at $76.7 billion in 1969, $3.0 billion more than no,v estimated for 1968 and $9.2 billion more than in 1967. New obligational authority of $79.1 billion is proposed for the Department, compared with $72.8 billion for the current year. About two-thirds of the expenditures in 1969 will be made from new obligational authority being sought in the budget. The balance will result from obligational authority granted in prior years. The funds requested for 1969 will cover all currently anticipated defense requirements for the fiscal year, including the possibility of a continuation of combat in Vietnam beyond this period. However, plans have been made for an orderly decline in defense production whenever combat ends. Of the total increase in military expenditures between 1968 and 1969, $1.3 billion is for special Vietnam support, and $1.7 billion is to meet continuing defense requirements. The increase in expenditures aside from Vietnam is principally attributable to increases in military and civilian pay, and selective improvements in our strategic and general purpose forces. Support of Vietnam.-The following table shows the budget expenditures directly attributable to our effort in Vietnam. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 83 THE FEDERAL PROGRAM BY FUNCTION ESTIMATED EXPENDITURES FOR SPECIAL SUPPORT OF VIETNAM OPERATIONS (In millions) Defen1e expenditures, excluding Vietnam Fiscal year Special Vietnam expenditures Defense 1965 ________ --- _-- -- _--- ----- _ 1966______________ ---- _------- $46,070 48,597 $103 5,812 1967---------- _______ -- -- -- .-1968_____ -- -- __ -- _-- ___ -- -- --1969_______ -- ________ -- -- _____ 47,333 49,163 50,874 20,133 24,531 25,784 1 Economic a 11i1tance 1 -------------$282 424 458 480 Total $!03 6,094 20,557 24,989 26,264 These expenditures are part of the International function. For a diacuaaion. aee page 95. Expenditures for special' Vietnam support include amounts related to ammunition and supplies consumed in the theater of operations, attrition of aircraft and other equipment, the manpower necessary to support the combat effort, and the support of free world forces in Vietnam. The scope of our activities in Vietnam is reflected also in the military forces committed in that nation's defense. The following table shows that deployments to Southeast Asia, which are .~ow leveling off, have not been achieved at the expense of forces required for other IIllSSIOnS. TOTAL MILITARY PERSONNEL AND DEPLOYMENTS TO SOUTHEAST ASIA (In thousand,) Date June 30, June 30, June 30, June 30, 1964 ______________________________________________ _ 1965 ______________________________________________ _ 1966 _____________________________________________ -1967 ______________________________________________ _ December 31, 1967, estimate _________________________________ _ Total military personnel 2,685 2,653 3,092 3,376 3,400 Military personnel in Southeast Asia 21 !03 322 529 568 Active jorces.-As shown in the Summary of Active Forces, this budget supports a total strength of approximately 3½ million men and women, a decrease of about 13,000 from 1968. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 84 THE BUDGET FOR FISCAL YEAR 19 6 9 SUMMARY OF ACTIVE FORCES Actual, June 30, 1967 Description Eatimated June 30, 1968 June 30, 1969 Military personnel (in thousands) : Army _________________________________________________ _ Navy __________________________________________________ _ Marine Corps __________________________ -- ______________ _ Air Force ______________________________________________ _ 1,442 752 285 897 1,536 768 302 884 1, .508 795 306 868 Total, Department of Defense ________________________ _ 3,376 3,490 3,477 l====l====I==== Selected military forces: Strategic forces: Intercontinental ballistic missile squadrons: Minuteman ________________________________________ _ Titan ______________________________________________ _ Polaris submarines/missiles (in commission) _____________ _ Strategic bomber wings: 8-52 __ -- -- -- -- ____________ --- _______ -- ________ --- __ 8-58 ______________________________________________ _ Manned lighter interceptor squadrons ___________________ _ Bomarc interceptor missile squadrons ____________________ _ Army air defense missile battalions ______________________ _ General purpose forces: Army divisions _______________________________________ _ Army maneuver battalions _____________________________ _ Army aviation units ___________________________________ _ Army special forces groups _________ . ___ . _______ . _______ _ Warships (in commission): Attack carriers _____________________________________ _ Antisubmarine warfare carriers _______________________ _ Nuclear attack submarines ___________________________ _ Other ______ ._ . ___________ . _________________________ _ Amphibious assault ships (in commission) _______________ _ Carrier air groups (attack and antisubmarine) ____________ _ Marine Corps divisions/aircraft wings _______________ . ___ _ Air Force tactical forces squadrons ______________________ _ Airlift and sealift forces: Airlift aircraft squadrons: C-130 through C-141- ______________________________ _ C-124 and C-7 _____________________________________ _ Troopships, cargo ships, and tankers ____________________ _ Addenda: Active aircraft inventory (all programs) : Army __________________________________________ . ___ _ Navy ______________________________________________ _ Air Force 1 _________________________________________ _ Helicopters included in service aircraft, above __________ _ Commissioned ships in Beet (all programs) _____ . _________ _ 1 Ind udes aircraft provided for I upport of allies. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 6 41/656 20 6 41/656 20 6 41/656 12 2 28 6 18 11 2 26 6 18 10 2 19 6 18 17 201 183 7 19 212 218 7 19 212 234 7 15 8 28 327 162 27 4/3 126 IS 8 36 320 157 27 4/3 136 15 8 44 309 166 25 4/3 138 44 16 130 44 14 130 43 11 130 9,490 8,417 15,017 8,902 931 10,671 8,942 15,127 10,519 936 11,464 8,606 15,044 12,486 960 85 THE FEDERAL PROGRAM BY FUNCTION For planning purposes the resources of the Department of Defense are summarized and reviewed in terms of major mission-oriented programs. The funds required for these programs in 1969 are summarized on the following table in terms of total obligational authority. This financial measure includes the new obligational authority enacted each year by the Congress, plus the obligational authority granted in earlier years which is no longer required for its original purpose and can be used to finance new needs. SUMMARY OF THE DEPARTMENT OF DEFENSE BUDGET PROGRAM (Fiscal years. In billions] Total obligational alithority Major military program& 1967 1968 1969 actual estimate estimate Strategic forces ___________________________________________ _ General purpose forces _____________________________________ _ Intelligence and communications ____________________________ _ Airlift and sealifL ________________________________________ _ Guard and Reserve forces __________________________________ _ Research and development_ ________________________________ _ Central supply and maintenance ____________________________ _ Training, medical, and other general personnel activities _____ ._._. Administration and associated activities_._. _________________ _ Military assistance funded by Department of Defense. __ .... _._ $6.9 32.7 5.3 I. 9 2.7 4.8 7.1 8.5 1.5 1.6 $7.9 32. 6 5.7 I. 9 2.7 4.6 7. I 9.4 I. 6 1.6 $9.6 35. 2 6.3 1.8 3.0 5. I 7.3 9.8 1. 7 2.1 Subtotal__. ___ . __ . __ .. ________ .. ____ .. ___ . ___ . ____ ._ Adjustment for retired pay accrual.. .. ______________________ _ 72.9 -.4 75.0 -.3 81. 9 -.1 Total obligational authority __ . _______________________ _ Of which: New obligational authority _________________________ . __ . __ _ Prior year funds_. ______________________________________ _ Other financial adjustments ______________________________ _ 72. 5 74. 7 81. 8 72.3 .I .I 72.8 1.8 79. l 2.5 .2 .1 I Strategicforces.-Our strategic forces constitute a powerful deterrent to nuclear aggression against this Nation and its allies. To deter such aggression, we maintain a varied, reliable, and credible force which can withstand a surprise attack and retaliate with sufficient power to destroy as a viable society any aggressor or combination of aggressors. At the end of 1968, our strategic offensive forces will include more than 1,050 land-based ICBM's, 41 submarines in commission capable of carrying 656 missiles, and more than 600 manned bombers. The planned defensive forces will include 26 fighter interceptor squadrons, 6 Bomarc interceptor missile squadrons, 18 air defense missile battalions, and extensive warning and control systems. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 86 THE BUDGET FOR FISCAL YEAR 1969 While continuing to stand ready to enter meaningful discussions with the Soviet Union on the limitation of strategic forces, we now plan to augment further our formidable strategic capabilities by taking the following actions: • Provide our Minuteman and Poseidon systems with penetration aids and multiple warheads capable of being directed to separate targets. • Continue the conversion of submarines from Polaris to Poseidon missiles for an increase in payload of two times, and the conversion of Minuteman I to the improved Minuteman III. • Procure additional FB-111 manned bombers and improved short range strategic missiles for the FB-111 and some B-52 bomb~ffs. • Proceed with procurement of the Sentinel missile defense system to meet the threat posed by the emerging Chinese nuclear capability. • Start a revamping of our air defense system to include eventually a new airborne warning and control system and an improved interceptor aircraft. Total obligational authority of $9.6 billion is requested for this program in 1969, compared with $7.9 billion in 1968. This increase is due primarily to the deployment of Sentinel and large procurements of Minuteman and Poseidon missiles. General purposejorces.-This Nation relies on powerful and highlyversatile tactical forces to deter a wide range of lesser military threats, against which the use of strategic nuclear power would not be appropriate. Most of our forces are devoted to this mission. Funds provided in this budget will further augment the firepower, mobility, and readiness of our general purpose forces and replenish the munitions, supplies, and equipment consumed in Vietnam. High production capabilities also assure our readiness to respond rapidly and effectively to unforeseen contingencies. Total obligational authority is estimated to require $35.2 billion in 1969, compared with $32.6 billion in 1968. The creation of one division from existing units in South Vietnam, together with the formation in fiscal year 1968 of an additional U.S.based division, will bring our active forces to 19 Army divisions and four Marine Corps divisions, plus supporting elements. The mobility and flexibility of these ground forces will be enhanced by increases in helicopter procurement. Improvements will also be made in our forward air defense systems, in particular for defense against low-altitude aircraft. Navy general purpose forces will be strengthened by the procurement of a number of new ships and the major conversion or modifica- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 87 tion of others. Funds are requested in 1969 to procure long lead-time items for our third nuclear attack carrier and for two nuclear guidedmissile destroyers. Among the new ships approved for procurement in this budget are two nuclear attack submarines and the first five of a new type of destroyer. Improved reliability and substantial economies in the construction and operation of the new destroyer and missile ships are expected to result from multiyear contracting, and standardized design and production. Amphibious forces will be improved by the procurement of a new type of multipurpose assault ship. When completed, a single ship of this type will combine the troop and cargo carrying, assault, and helicopter-base capabilities now requiring four specialized ships. Antisubmarine warfare capabilities will be enhanced by the addition of more effective sensors and torpedoes, continued modernization of our land-based air patrol squadrons, and by the development of a new carrier-based aircraft. Air defense of the fleet will benefit from the procurement of the Standard missile-a more reliable, versatile, and faster-reacting weapon than the Tartar and Terrier missilm; which it replaces. Superior air tactics and improved ability to confuse enemy radar have contributed to a lower-than-expected aircraft loss rate in Vietnam. As a consequence, our program for the replacement of aircraft will be lower than anticipated. Procurement for our tactical air forces will include A-7 attack aircraft and advanced F-111 fighters for the Air Force and Navy, the A-6 all-weather bomber for the Navy and Marine Corps, and F-4 fighters for all three Services. Continued purchase of the smaller A-37 attack aircraft will contribute to the ability of our Special Air Warfare Forces to react quickly to emerging threats. Efforts will also be made to improve further the accuracy of our air-dropped munitions. Intelligence and communications.-Total obligational authority for these specialized activities will amount to $6.3 billion in 1969 compared with $5.7 billion in 1968. This increase reflects improvements in our advanced command and communications systems. In addition to communications and general space support systems, this category includes intelligence and security functions, weather service, and oceanography. We are continuing to buy the H-53C helicopter for our rescue and recovery units. This aircraft has greater range and speed, and will survive better under fire than the models it replaces. Our ability to rescue downed combat aircrews should be measurably enhanced. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 88 THE BUDGET FOR FISCAL YEAR 1969 Airlift and sealijt.-Our demonstrated capacity to move large forces rapidly and to supply them in sustained combat at great distances is designed to permit effective counteraction in the early stages of a conflict. This capacity today is provided by our transport and troop carrier aircraft, troop and cargo ships, and stocks of equipment prepositioned overseas. The 1969 budget provides for continued acquisition of the giant C-5A air transport and the procurement of the first four new fastdeployment logistics ships. The latter are large, high-speed vessels which complement our airlift forces with a capability for rapid, large-scale reinforcement by sea. Our medical evacuation air fleet will be modernized through the procurement of the new C-9A aircraft which will permit the movement of patients more rapidly and in greater comfort over long distances. Guard and Reserve forces.-To be effective in an emergency, reserve forces must be capable of rapidly reinforcing the regular forces. This requires highly-trained, well-equipped units which complement those of the active forces. To provide this capability, the 1969 budget will provide total obligational authority of $3.0 billion, compared with $2.7 billion in 1968. This request will provide for a paid drill training strength of 660,000 for the Army, 126,000 for the Navy, 132,000 for the Air Force, and 48,000 for the Marines. Research and development.-This program supports research activities and finances the development costs of new systems not yet approved for operational use. The cost of systems already approved for procurement are included in appropriate mission-oriented programs. The new Sentinel system, for example, is funded in the Strategic forces program. Total obligational authority for 1969 is estimated at $5.1 billion, an increase of $0.5 billion over 1968. Scientific research, a critical underpinning to the Nation's defense, will receive increased support this year. To lay the technological and scientific base for future weapon systems, and to shorten development lead-time in the event of a greater-than-expected threat, a wide range of additional exploratory and advanced development effort is being undertaken, particularly in the strategic area. Major emphasis in 1969 will be placed on further reducing the vulnerability of our retaliatory forces to enemy weapons, and on developing more advanced anti-ballistic missile and strategic surveillance capabilities. The next generation of tactical aircraft-including new fighter aircraft and their weapons, an antisubmarine aircraft, and a light transport-will be in the design or development stage. Improve https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 89 ments in land combat systems, particularly those applicable to counterinsurgency, will be pursued to improve air and surface mobility, firepower, surveillance, and command and control. Increased effort will also be placed on new capabilities in air defense for our ground and sea forces. Work will be initiated on a new class of escort ships. Continued development of the orbiting laboratory (MOL) will result in a larger Defense space program in 1969. Satellite communications, improved launch vehicles and rocket engines, and enhanced capabilities for nuclear test detection and early warning of missile launches remain among the other high priority space efforts of the Defense Department. Central supply and maintenance.-Total obligational authority for this program is estimated at $7.3 billion in 1969, compared with $7.1 billion in 1968. Despite the expansion of logistics support to Vietnam and the rapidly rising expense of maintaining our increasingly complex and sophisticated defense systems, a vigorous attempt has been made to hold down costs in this area through improved management and greater efficiency. Training, medical, and other general personnel activities.-Among the centrally-administered personnel activities in this program are the operation of general hospitals, basic and specialized training, travel and transportation for permanent change of station, debt-service payments on family housing, and homeowner's assistance. Total obligational authority for these activities will rise to $9.8 billion in 1969, primarily due to increases in pilot training and other specialized training, and the higher medical costs associated with larger military forces. Special efforts are being made to expand the opportunities of those who serve in the Armed Forces. The Department will continue to seek the elimination of housing discrimination against military personnel and their families. "Project 100,000" will be extended this year. Under this program highly motivated individuals with correctable educational and physical handicaps are enabled to become fully qualified servicemen, and more productive citizens if they choose to return to civilian life. The program provides intensive military instruction, practical training, and medical care, as is available to all members of the Armed Forces. To complement this program, Project Transition has been initiated to permit personnel leaving the service to prepare themselves more adequately for civilian life. For those who desire assistance, this program seeks to provide counseling, skill enhancement, education, and job placement. Proposed legislation.-A number of improvements are being sought in compensation arrangements for both civilian and military personnel. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 90 THE BUDGET FOR FISCAL YEAR 196 9 The budget provides expenditures of $70 million in 1969 to increase travel allowances for military personnel, provide Federal employee status for civilian National Guard technicians, and increase the benefits under Servicemen's Group Life Insurance. Military assistance.-New obligational authority for military assistance grants, which fell from $728 million in 1967 to $380 million in 1968, will rise to $420 million in 1969. New obligational authority for the direct financing and guarantee of credit sales of military equipment, which fell from $54 million in 1967 to $20 million in 1968, will rise to $120 million in 1969. The increase in new obligational authority for credit sales is required to replace funds previously available from a revolving fund which will terminate on June 30, 1968. The military assistance trust fund finances cash sales of military equipment and related services to European and other developed nations of the free world. On delivery, payments by the purchasers fully repay charges to the fund. Atomic energy activities.-Expenditures by the Atomic Energy Commission in 1969 are estimated to be $2.5 billion, $213 million higher than in 1968. A substantial increase in expenditures for the design, testing, and production of nuclear weapons, and smaller increases in other areas, will be partially offset by an estimated further decline in expenditures for procurement of uranium concentrates. The various activities in AEC's program and the funds devoted to them are shown in the following table: ATOMIC ENERGY COMMISSION PROGRAM (Fiacal years. In millions] Program 1967 actual I I 1968 1969 estimate estimate Procurement and production of raw and special nuclear mater ials_/ Military applications __________________________________ _- -- - I Space applications ____________________________________ _ ----1 Central station nuclear power development_ ______________ _---Other civilian applications _____________________________ _- - - Basic research in the physical and biomedical sciences _____ _- - - Nuclear science and technology support_ _________________ _- - - General support_ _____________________________________ _- - - - $542 849 159 127 26 444 139 131 $491 1,012 123 $489 1,281 143 258 32 555 174 136 Total program funding __________________________ _- - - Carryover funds and other adjustments __________________ _- - - - 2,417 -218 2,508 3,061' 2, 1991 2,5091 New obligational authority _______________________ _- -- - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 132 163 34 421 132 I -m 2,755 THE FEDERAL PROGRAM BY FUNCTION 91 Nuclear materials.-Costs for the procurement of raw uranium concentrates will decline further in 1969, reflecting a decrease in the unit cost of the Government's purchases. Because of a further reduction in plutonium requirements for military purposes, two of the nine operating production reactors will be shut down in the latter half of fiscal year 1968. Muit,ary applications.-The primary military applications of atomic energy comprise the nuclear weapons program and the naval reactors program. Largely as a result of the recent decision to deploy the Sentinel anti-ballistic missile system, expenditures in the weapons program will increase substantially above 1968. Additional funds will be needed for the development and full-scale underground testing of nuclear weapons, as well as for construction of facilities to produce the nuclear warheads for the Sentinel and other advanced weapons systems. The cost of the facilities for the production of advanced weapons is now tentatively estimated at $285 million. However, uncertainties regarding scope of the facilities could cause a change in the present estimate. Central sf,ation nuclear power development.-The principal element of AEC's program in this area is the effort to develop an economic fast breeder reactor, which promises to produce more fissionable nuclear material than is consumed in the process of producing power. This long-term program will be intensified further in 1969. Basic research.-AEC's far-reaching program of basic research in the physical and biomedical sciences will be marked in 1969 by the start of construction of a 200 billion electron volt (Bev) proton accelerator which is already being designed. This facility, to be located 30 miles west of Chicago, is now estimated to cost $250 million excluding supporting research equipment. It will accelerate protons to extremely high energy levels and will be used on the frontiers of basic research in high energy physics. INTERNATIONAL AFFAIRS AND FINANCE The fundamental objective of our international programs is a peaceful world community in which all peoples can progress toward fuller, more satisfying lives. Patience, determination, and understanding are required as we pursue this objective through our diplomatic, financial, and cultural relations with other nations. Our foreign assistance efforts this year again affirm our commitment to cooperate with other advanced nations in supporting economic and social progress for the less fortunate two-thirds of mankind. The tasks of economic development cannot be completed quickly or https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 92 THE BUDGET FOR FISCAL YEAR 1969 INTERNATIONAL AFFAIRS AND FINANCE [Fiscal years. In millions! Expenditures and net Recom- lending mended NOA and LA for 1969 I Program or agency 1967 actual 1968 1969 estimate estimate --E:rperulitar.s: Condud of foreign affairs: Department of State 2 ____________________________ _ U.S. Arms Control and Disarmament Agency ________ _ Tariff Commission ________________________________ _ Foreign Claims Settlement Commission 2 3 ___________ _ Department of Justice (trust funds) ________________ _ Treasury Department (trust funds) ________________ _ $321 10 3 21 2 8 $337 9 4 200 4 5 $355 10 4 1 53 6 $350 10 4 I --------5 Economic and financial programs: Agency for International Development: Development loans _____________________________ _ Technical cooperation 2 _________________________ _ Alliance for Progress ____________________________ _ Supporting assistance ___________________________ _ Contingencies and other _________________________ _ 662 625 670 224 203 216 516 511 465 587 621 602 310 334 313 Applicable receipts from the public ( - ) 3 _________ _ -69 -51 -63 -----Subtotal, Agency for International Development 2 3 2,268 2, 145 2,264 Subtotal, excluding special Vietnam ______________ (1,844) (1,687) (1,784) International financial institutions: Present programs________________________________ 170 223 Proposed legislation ______________________________________ -------Export-Import Bank_______________________________ -104 -144 Peace Corps 2 3 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 112 108 Other 2 ______ ____________ __ _ _ __ ______ _ ____ _ _ _ ___ _ _ 20 21 765 238 625 595 280 -69 2,434 (1,954) Food for Freedom___________________________________ Foreign information and exchange activities: 1,452 1,315 200 320 446 10 -110 --------110 113 11 20 1,444 918 United States Information Agency 2 3 _______________ _ Department of State and other 2 ___________________ _ Applicable receipts from the public ( - ) 3 ______________ _ 185 59 -417 187 68 -153 194 61 -144 179 54 -144 4,110 4,330 4,478 4,700 (4,220) Subtotal, expenditures_________ ___ _____________ ---------·1---- Subtotal, erpendituru, excluding special Vietnam _____ (3,687) (3,872) (3,998) ~-----===•I==== Na Leruling: Economic and financial programs: Export-Import Bank: 660 608 Present programs __ ------------------------------540 716 15 Proposed legislation_------------------------------ _______________ _ ---------•l---Subtotal. net lending ___________________________ _ 675 608 716 540 - - - - - - ===•I==== Total__ ____ ------------------------------ __ ·--- 4,650 5,046 5,153 Total, excluding 1pecial Vietnam ___________________ (4,227) (4,588) (4,673) 5,308 (4,828) I Compares with new obligational authority (NOA) and lending authority (LA) for 1967 and 1968. aa follows: NOA: 1967, $4,336 million: 1968, $4,402 million. LA: 1967, $779 million: 1968, $865 million, ' Includes both Federal funds and trust funds. 3 Relevant "' lnterfund and intragovernmental transactions" and .. Applicable receipts from the public .. have been deducted to arrive at totals. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 93 THE FEDERAL PROGRAM BY FUNCTION without sacrifice. Our assistance can only be a catalyst and supplement to the self-help actions which the developing nations themselves must undertake. In 1969, more than 90% of our development lending will be undertaken in concert with other developed nations or within a regional or multilateral framework. CREDIT PROGRAMS-INTERNATIONAL AFFAIRS AND FINANCE 1 [Fiscal year,. In millional Program or agency 1967 1968 1969 actual estimate estimate Economic and financial programs: Export-Import Bank: Commitments_________________________________________ Disbursements_________________________________________ Repayments___________________________________________ Net lending ________________________________________ _ 1 ($2, 661) 1, 167 627 540 ($2, 111) ($2,440) 1,645 1,680 929 1,005 716 675 Excluding credit programs in the expenditure account. Total outlays for international affairs and finance are expected to be $5.2 billion in 1969, $107 million more than in 1968. Higher expenditures for Food for Freedom shipments and economic assistance will be largely offset by substantial decreases in (1) expenditures of the Foreign Claims Settlement Commission reflecting final settlement of World War II claims in 1968 and (2) net lending by the Export-Import Bank. Agency for International Development.-The Agency for International Development administers our economic assistance programs through three principal instruments: • Long-term, dollar repayable development loans provide the capital assistance for projects and imports necessary for economic growth. • Technical assistance grants contribute to the development of the human and institutional resources required for effective longterm development. • Supporting assistance loans and grants are provided in a limited number of countries to strengthen political stability and security in order to maintain an environment in which economic and social progress are possible. AID loans to foreign countries are classified in the budget as expenditures rather than net lending, consistent with the recommendations of the President's Commission on Budget Concepts. Total expenditures of the Agency for International Development are estimated to rise by $119 million in 1969. Efforts to minimize the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 94 THE BUDGET FOR FISCAL YEAR 1969 effect of these assistance programs on the U.S. balance of payments have been successful and will be intensified. More than 90% of AID expenditures in 1969 will be for purchases of U.S. goods and services. Special measures are being taken to insure that exports financed with AID support do not substitute for U.S. commercial exports. Thus, AID helps to promote the long-term growth of markets for U.S. exports by stimulating new trade patterns and opportunities. The AID budget program is summarized in the table below in terms of total obligational authority. This includes primarily new obligational authority granted each year by the Congress, plus the obligational authority becoming available each year from loan repayments and recoveries of prior year obligations. SUMMARY OF THE AID BUDGET PROGRAM (Fiscal year,. In million,) Total obligational authority (Federal fund,) Major assistance programs 1967 1966 1969 actual estimate estimate East Asia (excluding Vietnam)______________________________ $276 Vietnam__________________________________________________ 495 2 893 Near East and South Asia__________________________________ Africa____________________________________________________ 203 Latin America (Alliance for Progress)________________________ 585 Contributions to international organizations___________________ 144 Contingency fund (unallocated)__ ___________ ___ ____________________ _ General support___________________________________________ _ 140 Total obligational authority 1 ______ _ Of which: New obligational authority 1 _________ _ Prior year and other funds ___________ _ $209 470 467 140 538 135 44 138 $277 480 706 179 708 154 50 152 2,735 2,141 2,706 2,143 1,895 245 2,500 206 592 1 Excludes trust funds not requiring congressional action. :? Includes $320 million of 1966 funds, which were a vaila hie to support 1967 pro gr a ms in India and Pakistan because aid to those countries was suspended during the Kashmir crisis. East Asia (excluding Vietnam).-In 1969, some $277 million is planned for the East Asia program, about the same as in 1967, but $68 million higher than in 1968. 11ost of the increase is for the U.S. share of a multilateral stabilization and development program in Indonesia, which is recovering from a long period economic mismanagement. In Korea, further economic progress permits us to continue shifting our aid from supporting assistance to development lending. Increased technical cooperation funds will support new regional initiatives in Southeast Asia, primarily to improve education and agriculture. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 95 THE FEDERAL PROGRAM BY FUNCTION Agency for International Development - Program Trends $ Billion, 3.0- Fiseol Years Estimate Vietnam.-Economic and social progress in Vietnam are absolutely essential to the stability and security of Southeast Asia. In 1969 the Commercial Import Program will help control inflation by providing foreign exchange to pay for imports needed to meet the requirements of the Vietnamese economy. Assistance will be given the rural citizens of that strife-torn country to build in safety their homes, farms and schools. Total obligational authority in 1969 is estimated at $480 million, an increase of $10 million above 1968. Near East and South Asia.-The development assistance program will increase from $467 million in 1968 to $706 million in 1969. Most of the increase is for our share of assistance given through international consortia to India and Pakistan. This aid will help speed India's recovery from 2 years of recession by providing over $200 million for the purchase of fertilizer to help expand farm production and by supporting India's import liberalization program undertaken last year. The increase will also help maintain Pakistan's progress toward sustained economic growth. Africa.-In 1969, our assistance to Africa will (1) concentrate lending and technical assistance in those countries making significant progress toward economic growth; (2) seek to foster increased cooperation with other industrial countries and multilateral organiza https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 96 THE BUDGET FOR FISCAL YEAR 1969 tions such as the World Bank and the new African Development Bank in providing high priority assistance, especially in agriculture, health, and education; and (3) encourage and support viable regional programs in these areas. Total obligational authority in 1969 will be $39 million above the 1968 level. Latin America.-In 1969, financial assistance for the Alliance for Progress will be increased by $170 million to carry out the decisions reached by the American Presidents at Punta del Este in April 1967. Included in the Declaration of the Presidents were commitments to increase agricultural productivity, promote education, encourage science and technology, and provide support for economic integration. We have pledged to assist the Latin American nations in these efforts to advance the pace of change in our hemisphere. Our aid is closely related to the recipients' self-help actions and to the programs of other donors through the Inter-American Committee on the Alliance for Progress (CIAP). The term "foreign assistance" generally applies to both economic and military assistance, as authorized by the Foreign Assistance Act. The following table summarizes total expenditures and new obligational authority for both programs. Military assistance is discussed under the heading of National Defense. FOREIGN ASSISTANCE TOTALS [Fiscal years. In millions) ---------- ' Expenditures (Federal funds) New obligational authority 1967 1968 1969 1967 1968 1969 actual estimate estimate actual estimate mended recom- --- - -------- Economic assistance 1 ___________________ $2,315 Military assistance 1 ___________________ -! 873 $2,205 $2,330 $2,143 $1. 895 $2,500 525 782 540 550 400 I ------ Total ___________________________ i 3,188 2,755 2,295 3,040 I i 1 ~1~ Excludes trust funds not requiring congressional action and deduction of applicable receipts. Other economic and financial programs.-The United States promotes economic growth abroad through various activities in addition to loans and grants provided by AID. Prominent among these are U.S. contributions to international financial institutions which provide additional resources to support economic development. These institutions are important instruments for mobilizing capital and coordinating economic assistance. A table summarizing the new obligational authority required to fulfill our contributions to these institutions for 1967-1969 follows: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 97 THE FEDERAL PROGRAM BY FUNCTION INTERNATIONAL FINANCIAL INSTITUTIONS [Fiscal years. In millions] New obligational authority Institutions 1967 1968 1969 actual estimate eatimate Inter-American Development Bank: Fund for Special Operations_______________________________ $250 $300 Ordinary capital_ ___________________________________________________________ _ Asian Development Bank (ordinary capital) _____________________________________ _ 104 I04 International Development Association_______________________ TotaL ____________ ----- -- ------------ -- ------------1 Proposed 354 404 $300 206 20 1 240 1 766 for separate transmittal. Through its Fund for Special Operations, the Inter-American Development Bank (IDB) provides long-term loans at low interest rates for economic and social development projects in Latin America. Increased emphasis will be given to multinational transportation, communication, and power projects which promote greater regional economic integration. The ordinary capital of the IDB finances development projects for borrowers capable of meeting more nearly commercial terms. Authorizing legislation will be sought for a $412 million increase in the U.S. subscription to the Bank's callable capital, with the first installment of $206 million to be requested in 1969. The availability of callable capital makes it possible for the Bank to raise funds in private markets without requiring Federal expenditures. The Asian Development Bank, financed by subscriptions from 19 members from that region and 13 nonregional members, provides loans and technical assistance to the developing countries of Asia. The $20 million subscription requested for 1969 is the third of five installments. Legislation is pending in Congress to authorize a U.S. contribution to a multilateral special fund for the Bank primarily for use in Southeast Asia. The International Development Association (IDA), an affiliate of the World Bank, provides long-term loans to developing nations throughout the world, repayable on easy terms. Its resources will be exhausted during 1968. Upon completion of negotiations between IDA and donor nations, legislation will be sought to authorize a new U.S. contribution. A 1969 appropriation is proposed for separate transmittal. The Export-Import Bank supports the growth of U.S. exports through its direct loan, insurance and guarantee programs. Net lending by the Bank is expected to decrease from $716 million in 1968 to $675 million in 1969, reflecting higher repayments of principal on loans made in prior years. These increased repayments will help reduce the 300-000 0-68-7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 98 THE BUDGET FOR FISCAL YEAR 196 9 U.S. balance of payments deficit. By the end of 1969, the Bank's insurance and guarantee programs will protect $2.7 billion of U.S. exports against both commercial and political risks. Transactions of the Bank which are classified as expenditures include guarantee and insurance costs, interest paid, and other expenses. In 1969, receipts of the Bank, primarily from interest received on loans, will exceed expenditures by $110 million, $34 million less than in 1968. Legislation is no,v before Congress to extend the life of the Bank which is due to expire on June 30, 1968. The Peace Corps will continue to provide Americans with expanded opportunities for significant service abroad. By August 31, 1969, there will be over 15,000 volunteers in training or overseas. During 1969 volunteers are expected to be active in about 60 countries working alongside the peoples of these nations in a variety of projects: • 41 % will participate in education programs, with a growing number involved in teacher training. • 23% will be working to modernize agricultural production and marketing. • 14% will be engaged in improving health conditions. Food for Freedom.-The principles embodied in the 1966 amendments to the Agricultural Trade Development and Assistance Act (commonly called Public Law 480) will continue to be applied in 1969: • All sales agreements specify commitment for self-help activities by recipient countries. • An increasing proportion of food shipments is being paid for in dollars or local currency convertible to dollars. This proportion is expected to increase from 17% in 1967 to more than 50% in 1969. • Food aid and dollar aid are being closely linked in the development and negotiation of agreements to assure most effective use of both types of resources. • The emphasis in donation programs is on child feeding and foodfor-work projects, which are oriented to development purposes. Although efforts to expand food production in the developing countries have been substantially increased, the full impact of these measures on output will take time to be felt. Larger shipments of U.S. agricultural commodities are needed to help fill the gap between supply and demand in the short run. Accordingly, Food for Freedom expenditures will rise by an estimated $129 million in 1969 to a total of $1.4 billion. About two-thirds of these expenditures will be under sales agreements; the rest will be for a donation program, administered in part through private voluntary agencies. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 99 THE FEDERAL PROGRAM BY FUNCTION Legislation will be proposed to extend the Food for Freedom program beyond its expiration date of December 31, 1968. Foreign information and exchange activities.-The 1969 budget provides for an increase in U.S. Information Agency activities in Latin America and Europe. Greater emphasis will be placed on programs designed to reach audiences outside the major cities, particularly youth groups at universities. A major new radio facility in the Philippines will be completed during the year, and work will continue on the new facility in Greece scheduled for completion in the spring of 1971. The recommended new obligational authority for 1969 provides for three exhibits in the Soviet Union as part of a new cultural exchange agreement. Expenditures in fiscal year 1969 for the educational and exchange activities of the Department of State are estimated at $52 million. These expenditures will support programs to exchange leaders, professors, scholars, teachers, and students with other countries of the world. SPACE RESEARCH AND TECHNOLOGY New obligational authority of $4.4 billion is recommended for the National Aeronautics and Space Administration in 1969, a decrease of $218 million. This is 5% less than the current year and $597 million less than 1967. Expenditures for 1969 are estimated to be $4.6 billion, a $230 million decrease from the current year. SPACE RESEARCH AND TECHNOLOGY (Fiscal years. In millions( Expenditures Recom~ mended NOA for 1969 I 1967 1968 1969 actual estimate estimate Manned space flight: Manned lunar landing ______________________________ _ $3,587 Extended manned flight_ ____________________________ _ 62 Space sciences ________________________________________ _ 674 Space applications ____________________________________ _ 122 Space technology _____________________________________ _ 440 Aircraft technology ___________________________________ _ 89 Supporting activities 2 ________________________________ _ 452 Applicable receipts from the public(-) ________________ _ -2 $3,028 138 563 135 420 113 411 $2,571 422 498 147 425 120 394 $2,362 463 479 148 410 131 378 -4 -3 -3 4,803 4,573 4,369 ---------1---- Total__________________________________________ 5,423 I Compares with new obligational authority (NOA) for 1967 and 1968, as follows: 1967, $4,966 million: 1968, $4,587 million. 2 Includes both Federal funds and trust fund,. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 100 THE BUDGET FOR FISCAL YEAR 196 9 Manned space flight.- Th e Apollo program is creating a large space booster capability and moving rapidly toward achievement of a manned expedition to the moon in this decade. Modifications to the Apollo spacecraft required by the tragic fire last January are being made and manned flight tests of the Saturn IB will resume this year. The flight last November of the first Saturn V launch vehicle was a dramatic success. The first manned flight using this massive rocket will occur this year if scheduled unmanned flights are successful. Five manned Apollo flights of the Saturn V are scheduled for calendar year 1969, one of which may well be the first manned landing on the moon. Expenditures for the Apollo program will decline by over $450 million in 1969 as the primary effort moves past the costly developmental phases to operational use of the systems. In the Apollo Applications program, 1969 funds will support production and modification of a limited number of Apollo systems for use in scientific and developmental programs, and preparations for flights in 1970 and beyond. Multiple rendezvous techniques and re-use of systems left in orbit will reduce the cost of this successor manned S Billions - 6 5.9 Space Research and Technology Extencl.d Manned Fl;,,. 5 4.6 ~ Total Expenditures Manned Lunar Landing 2.6 3 2 __ . oL ·'' Space Science and Applications , ·O❖C ,.... , .. ''•"-'~:·;,,:;, ~ 0.1 1958 • ... 1959 1960 Fiscal Years https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ,,._,,, .J 1961 1962 I ___,~ 0.4 IIA ; 1963 1964 1965 1966 1967 1968 1969 Estimate 0 THE FEDERAL PROGRAM BY FUNCTION 101 space flight activity. The ability of astronauts to remain in space for long periods of time will be systematically investigated, and engineering and scientific experiments will be undertaken in earth orbit. Funds are provided for a limited eff-0rt to prepare for additional exploratory flights to the moon after 1969. To support the Apollo Applications program, new obligational authority will increase by $186 million in 1969. Space sciences.-The unmanned lunar flights of the Surveyor and Orbiter spacecraft will be completed in 1968. Following the successful pattern of unmanned lunar flights, a series of orbiters and probes for planetary exploration will be ·under development in 1969. Mariner missions to Mars will be in preparation for launch in 1969 and 1971. A second-generation planetary spacecraft is again proposed for development, starting in 1969. The Voyager has been replaced by a smaller spacecraft for launch on Titan III rockets in 1973 to permit further exploration of Mars at much less than the original Voyager would have cost. Space flight programs for the advancement of astronomy, geophysics, and bio-science will also continue in 1969. Space applications.-Increased funds in 1969 will be devoted to expanding those fields in which space systems can be applied for direct economic benefit. Satellites are now in operation as components of communications, navigation, and weather forecasting systems. The budget provides for enlarging an aircraft program with other Federal agencies to provide techniques and instruments for remote measurement of earth resources. Detailed studies will be undertaken on proposed satellite systems for acquiring data on earth resources in the future. Space technology.-Advanced research and technology work on which future missions must be based will continue in 1969. The program to develop a nuclear rocket engine for eventual use on the Saturn V accounts for most of the increase in funds from 1968. Aircraft technology.-Technology originally developed for space programs is now being applied to the improvement of aircraft. Increased efforts will be devoted to improvements in a broad range of technical areas related to aeronautics, including noise reduction and aircraft capable of vertical or short takeoff and landing. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 102 THE BUDGET FOR FISCAL YEAR 196 9 AGRICULTURE AND AGRICULTURAL RESOURCES Federal agricultural programs are designed to support and enlarge the contribution of our farm and rural economy to the Nation's overall economic prosperity. American agriculture possesses an unparalleled productive capacity. Today, one farmer feeds and clothes more than three times as many people as he sustained a quarter of a century ago. However, many rural people have benefited little from this progress, and some have suffered as a result of it. Because of the rapid advance of productivity in agriculture and the slower growth in demand for farm products, employment opportunities in farming have been greatly reduced. As a result, large numbers of farm families, unable to make the transition to new occupations and to a new environment, are living in poverty. The recommendations in this budget for manpower development programs will strengthen employment and training services in rural areas. Other budget programs will improve health services and educational opportunities for rural people. The Department of Agriculture will provide increased assistance for low income rural housing and for public facilities in rural areas. The Department will also continue to encourage coordinated planning and administration of public investment through multicounty area development districts. These districts would provide a broader economic base for many rural areas to attract more private investment and to provide more adequate public services. Budget outlays for agriculture and agricultural resources are estimated at $5.6 billion in 1969, an increase of $298 million over 1968. Despite rising outlays for annual commodity programs and net lending estimated for 1969, the overall increase has been held to a minimum by reductions in other programs. Agricultural expenditures in 1969, largely for price support and related programs, are estimated at $4.5 billion, while loan programs, largely for rural electrification and telephone systems and for rural housing and farm operations, will result in net lending of $1.1 billion. Farm income stabilization.-Expenditures for price support and related programs are estimated to increase by $72 million to $2.8 billion in 1969. The largest part of these expenditures is for direct payments to farmers participating in the annual commodity programs. These programs help to stabilize farm income and commodity prices by adjusting supplies of farm commodities to demand. Direct payments to farmers fluctuate over time primarily with the need to divert agricultural land in order to bring commodity output into balance with domestic and export demand. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 103 THE FEDERAL PROGRAM BY FUNCTION AGRICULTURE AND AGRICULTURAL RESOURCES (Fiscal years. In millionaJ Expenditures and net lending Program or agency 1967 1968 1969 actual estimate estimate Recommended NOA and LA for 1969 I --Expenditures: Farm income stabilization: Price support and related programs __________________ Conservation reserve, cropland conversion, and cropland adjustment programs ________________________ Removal of surplus agricultural commodities __________ National Wool Act_ _______________________________ Sugar Act_ _______________________________________ Other 2 _________________ -- - - - - -- ----- _____________ $1,652 $2,703 $2,775 $3,275 211 175 64 86 190 200 178 63 87 156 195 407 64 82 156 2,267 12 3,428 13 3,459 13 4,178 13 111 115 117 117 216 26 217 203 JOO 30 30 25 -21 -48 74 -64 --------- II 96 92 570 623 675 -13 -6 -36 661 -13 -6 -36 4,474 5,131 196 145 35 82 157 --- Subtotal, farm income stabilization ________________ Financing rural electrification and rural telephones ______ Agricultural land and water resources: Soil Conservation Service-conservation operations 2___ Agricultural conservation program payments (including CCC loans) _____________________________________ Other ______ - - _- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Financing farming and rural housing: Farm Credit Administration 2 ____. ___________________ Farmers Home Administration and other2 ____________ Research and other agricultural services: Present programs 2 ________________________________ Proposed legislation for inspection fees _______________ -------- -------lnterfund and intragovernmental transactions ( - ) ______ -5 -5 Applicable receipts from the public(-) ________________ -34 -32 -----Subtotal, expenditures ___________________________ 3,156 4,412 -----Net Lending: Farm income stabilization ____________________________ Financing rural electrification and rural telephones 3 _____ Financing farming and rural housing: Farm Credit Administration (trust funds) ____________ Farmers Home Administration andother 2 ____________ Subtotal, net lending _____________________________ Total. ______ - - ------------ - -- - -------------- --- 262 232 -29 279 24 360 24 234 671 56 749 -100 771 -20 541 426 1,135 1,225 5,609 6,356 -----1,221 899 -----4,377 5,311 1 Compares with new obligational authority (NOA) and lending authority (LA) for 1967 and 1968, as follows: NOA: 1967. $4,318 million; 1968. $4,383 million. LA: 1967, $1,405 million; 1968, $1,450 million. 2 Includes both Federal funds and trust funds. 3 Figures for 1968 and 1969 reflect legislative proposals to establish a cooperative telephone bank, and revolving funds for the electric and telephone programs of REA. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 104 THE BUDGET FOR FISCAL YEAR 1969 CREDIT PROGRAMS-AGRICULTURE AND AGRICULTURAL RESOURCES 1 [Fiscal years, In millions! Program or agency 1967 1968 1969 actual estimate estimate Farm income stabilization: Commodity Credit Corporation: Disbursements __________________________________________ _ Repayments ____________________________________________ _ $277 -15 $161 -190 $220 -196 Net lending ________________________________________ _ 262 -29 24 (472) (470) 550 -190 Financing rural electrification and rural telephones: Rural Electrification Administration: Commitments __________________________________________ _ Disbursements __________________________________________ _ Repayments ____________________________________________ _ -180 (470) 470 -192 Net lending ________________________________________ _ 232 279 360 1,245 -1,188 1,426 -1,526 1,352 -1,372 56 -100 -20 Farm Credit Administration (trust funds): Banks for cooperatives: Disbursements ______________________________________ _ Repayments ________________________________________ _ 1,815 -1,622 2, IOI -1,852 2,370 -2,132 Net lending _______________________________________ _ 193 249 238 Federal intermediate credit banks: Disbursements ______________________________________ _ Repayments ________________________________________ _ 6,999 -6,520 8,349 -7,849 9,481 -8,948 Net lending ______________________________________ _ 478 500 533 Total, net lending_________________________________ _ 1,221 899 I, 135 412 Financing farming and rural housing: Farmers Home Administration and other: Disbursements ________________________________________ _ Repayments _________________________________________ _ Net lending ________________________________________ _ I Escluding credit programs in the espenditure account. Higher expenditures in 1969 will result from larger feed grain payments and lower sales from the Commodity Credit Corporation's stock of cotton. These increases will be partially offset by lower loans for feed grains, tobacco and wheat and increased sales of CCCowned wheat and feed grain stocks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 105 THE FEDERAL PROGRAM BY FUNCTION The following table provides information on all the operations of the Commodity Credit Corporation, including the Food for Freedom program which was discussed earlier under international affairs and finance. COMMODITY CREDIT CORPORATION OUTLAYS [Fiacal yeara. In millional Program 1967 actual 1968 1969 eatimate estimate Agriculture and agricultural resources: Price support operations: Wheat certificates issued ________________________________ Feed grain payments ___________________________________ Cotton payments ______________________________________ Other price support operations ___________________________ Receipts and"adjustments _______________________________ $652 1,340 813 2,935 -4,088 $725 960 865 3,356 -3,203 3,133 -3,269 Suototal, expenditures, price support operations _________ 1,652 2,703 2,775 Other expenditure activities _______________________________ Net lending _____________________________________________ 62 262 92 -29 61 24 Subtotal, expenditures and net lending __________________ 1,976 2,766 2,860 Food for Freedom: Gross expenditures _____________________________________ Receipts and reimbursements ____________________________ 1,671 -219 1,701 -386 1,791 -347 Subtotal, expenditures ________________________________ 1,452 1,315 1,444 Total outlays ________________________________________ 3,427 4,080 4,304 $742 1,415 755 International affairs and finance: Financing rural electrili,cation and rural telephone11.-Continued financial assistance will be provided through the Rural Electrification Administration to help distribute electric power and supply improved telephone service to rural areas. The previous table on credit programs shows the magnitude of the REA loan programs. Electric and telephone loan commitments will be maintained at about the 1968 level. Legislation is recommended to establish a cooperative bank for the telephone loan program and revolving funds for both the REA electric and telephone loan programs. This legislation will assist in meeting the growing capital needs of REA borrowers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 106 THE BUDGET FOR FISCAL YEAR 1969 Agricultural land and water resources.-Expenditures in 1969 for technical assistance and other conservation operations of the Soil Conservation Service will continue at about the same level as in 1968. Work will proceed on 34 authorized resource conservation and development projects and will begin on 10 other projects for which plans will be completed in 1969. New obligational authority of $100 million is recommended for the 1969 agricultural conservation program year. Fiscal year 1969 expenditures, however, will be $203 million since they are based on the 1968 congressional authorization. The proposed program level will provide the cost-sharing assistance necessary to continue long-term practices that preYent irreparable damage to land resources and that would not be applied without Federal assistance. Financing farming and rural housing.-Loans of the Farm Credit Administration through the Federal intermediate credit banks and the banks for cooperatives are primarily to help finance agricultural production and marketing. In 1969, the Farmers Home Administration will continue its emFARMERS HOME ADMINISTRATION Direct and Insured Loan Commitments 1 [Fiscal years. In millions) Program elements Improving farm income: Farm operating loans ____________________________________ _ Farm ownership loans ___________________________________ _ Soil and water loans _____________________________________ _ Emergency loans ________________________________________ _ Community development services ___________________________ _ Improving housing: Loans to individuals with above moderate incomes __________ _ Loans to individuals with low to moderate incomes __________ _ Farm labor housing loans ________________________________ _ Rental housing loans ____________________________________ _ Very low income housing repair loans ______________________ _ Public facilities and business expansion: Water and sewer loans_ Resource protection: Watershed protection loans _____________ _ Recreation, wildlife and natural beauty: Recreation loans ______ _ Total loan commitments _____________________________ _ Direct_ __________________________________________ _ Insured __________________________________________ _ 1967 1968 1969 actual estimate estimate $300 260 23 $275 205 55 64 4 95 2 4 5 3 175 6 28 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 40 407 15 25 18 135 3 30 5 30 1, 3271 505 822 I Represents obligations of direct loans and approvals of insured loans. 64 50 421 15 16 3 130 48 380 I 1 $250 280 33 1. 275 458 817 I I 1. 306 436 870 THE FEDERAL PROGRAM BY FUNCTION 107 phasis on helping low-income people in rural areas. To do this, FHA has thr0e major types of loan programs: Those to improve farm income, those to provide housing for rural families, and those to provide public facilities for rural communities. Wherever possible, grants for planning of water and sewer facilities will be made within the framework of a multicounty area development district. Research and other agricultural services.-Expenditures are estimated to increase by $39 million in 1969, of which $20 million will be used to carry out the Wholesome Meat Act of 1967. This amount will permit financial and technical assistance to help the States establish more effective intrastate meat inspection systems. Similar legislation will be proposed to strengthen Federal and State poultry inspection programs. Extension Service expenditures in 1969 will be $8 million higher than the 1968 level, and research expenditures will be increased by $9 million, as work originally authorized by Congress for 1968 is performed in 1969. To help improve agricultural statistics, a comprehensive review will be made of the entire crop and livestock statistical program, including data needs and possible sources. NATURAL RESOURCES Programs for the conservation and development of natural resources help to maintain the Nation's economic growth and to meet the needs of a growing population. Total budget outlays for natural resource programs are estimated at $2.5 billion in 1969, an increase of $58 million over 1968. The requested new budget authority for 1969, however, is $2.3 billion, which is $227 million below that of 1968, as lower priority resource development activities are being deferred or delayed. Land and water resources.-As in previous years, the largest part of estimated expenditures for natural resources in 1969 will be for land and water resource programs. These amounts will permit continuing construction of water resource projects started in previous years, construction of power supply and transmission facilities, and various programs for water pollution control and water resources research. Because of the critical water problems found in many regions of the Nation, it is essential that legislation to establish a National Water Commission be enacted without delay so that new approaches for water programs and policies can be explored. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 108 THE BUDGET FOR FISCAL YEAR 196 9 NATURAL RESOURCES (Fiacal yeara. In millionaJ Recom~ mended Expenditures and net lending NOA and LA for f969 I Program or agency 1967 actual 1968 1969 estimate estimate Expenditures: Land and water resources: Corps of Engineers 2 _____ ------. - -------- ------- -- $1,301 $1,341 Department of the Interior: Bureau of Reclamation 2 _________________________ 291 300 Power marketing agencies 2 _______________________ 133 147 Federal Water Pollution Control Administration _____ 190 130 Office of Saline Water 2 __________________________ 17 31 Office of Water Resources Research _______________ 6 9 Bureau of Indian Affairs ______ . __________________ 106 113 Bureau of Land Management 2 ___________________ 87 83 Tennessee Valley Authority ______________ . _________ 109 I02 Soil Conservation Service-watershed projects ________ I08 I06 International Boundary and Water Commission _______ 27 22 Federal Power Commission and other 2 _______________ 17 22 $1,313 $1,283 299 153 248 41 II 112 76 150 93 15 25 288 151 326 30 13 113 76 50 61 9 24 2,536 2,424 -----Subtotal, land and water resources _________________ Forest resources: Forest Service 2 ___________________________________ Bureau of Land Management_ ______________________ 2,335 2,465 -----461 21 495 22 470 22 486 22 68 126 136 105 140 153 160 148 158 134 110 158 50 50 48 73 83 80 General resource surveys and administration 2 ___________ 275 250 239 lnterfund and intragovernmental transactions ( - ) ______ -22 -I * Applicable receipts from the public ( - ) _____ . _________ -1,4!0 -1,348 -1,381 50 76 191 -1 -1,381 Recreational resources: Bureau of Outdoor Recreation 2 ____________________ National Park Service and other 2 ___________________ Fish and wildlife resources 2 __________________________ Mineral resources: Bureau of Land Management_ ______________________ Bureau of Mines and other 2 __________________-______ Subtotal. expenditures _____________________ . - . --- Net Lending: Land and water resources _ __________________________ _ Other _____________________ . _______________________ _ =~~~1_2.~~ 18 1 15 1 2,483 I 6 2,271 4 1 --------- Subtotal, net lending ______________________________ 191 __ 161 _ _ _ 71--~=4 Total__ ________________________________________ 2,1321-~4321-~4901 2,275 *Less than $500 thousand, 1 Compares with new obligational authority (NOA) and lending authority (LA) for 1967 and 1968, as follows: NOA: 1967. $3,262 million; 1968, $2,488 million, LA: 1967. $17 million; 1968, $14 million, 2 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 109 Water and rel,ated power developments.-The budget provides for continuing construction of ongoing water resource projects at minimum rates. While no ongoing projects will be stopped in 1968 or 1969, actions taken in the current fiscal year and the stringent budget recommendations for 1969 will, in many cases, delay completion schedules. Construction of new projects of the Corps of Engineers, the Bureau of Reclamation, and the Soil Conservation Service, planned for starting in 1968, including those added by the Congress, will instead be initiated over the 2-year period, 1968 and 1969. In addition, the budget provides new obligational authority in 1969 for the Corps of Engineers to begin construction or undertake land acquistion for 10 projects, and for the Bureau of Reclamation to initiate one project. Both agencies will continue advance planning on projects which could be started in future years. Legislation was recommended last year which would provide relief for the critical water problems in the Central Arizona area by substituting thermal power arrangements in place of proposed hydroelectric dams in scenic segments of the Colorado River Gorge. Congress should move promptly to complete action on that legislation. Financial assistance by the Soil Conservation Service for watershed protection projects will continue in 1969 at a minimum level. New obligational authority is recommended to start construction on five additional projects in 1969. With the stretchout of 1968 project starts, a total of 30 starts are now planned for 1968 and 55 for 1969. The interest rate now being used by Federal agencies in formulating and evaluating proposed water resource projects is significantly lower than the cost of borrowing by the Treasury. To improve the evaluation and selection of projects, administrative action is underway to relate this rate more closely to the average estimated current cost to the Treasury of long-term borrowing. The new interest rate, which will be higher than the rate now being used, will be applied in preparing future project evaluation reports. The Bureau of Reclamation and the power marketing agencies of the Department of the Interior will continue to provide essential facilities for reliable electrical services to the public in areas where the Federal Government provides a substantial portion of the required power demands. The Bureau of Reclamation will proceed with construction on the Third Powerhouse at Grand Coulee Dam, and the Bonneville Power Administration will continue construction on its major transmission grid in the Northwest. Legislation is again recommended to permit the Bonneville, Southeastern, and Southwestern Power Administrations to use revenues https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 110 THE BUDGET FOR FISCAL YEAR 1969 from the sale of power to finance capital outlays and operating costs, on a basis consistent with other business enterprise activities of the Federal Government. Under the new budget concepts applied in the 1969 budget, the proposed revolving fund legislation will have no effect on total budget expenditures, since these revenues are being deducted from expenditures as part of applicab!e receipts from the public. The activities of the Tennessee Valley Authority in 1969 are estimated to result in net expenditures of $150 million. These activities are financed in part through power proceeds and the sale of revenue bonds and in part by appropriations. The following table shows the gross activities of the Authority and receipts from power operations and other activities: TENNESSEE VALLEY AUTHORITY (Fiscal yean. In millions( Program 1967 1968 actual eatimate I estimate 1969 Obligationa: Power operations _______________________________________ _ Other program operations ________________________________ _ $259 46 $261 47 $287 47 Capital outlays for power supply and transmission system facilities _____________________________________________ _ Other capital outlays ____________________________________ _ 223 53 213 40 241 32 Total obligations ____________________________________ _ 581 561 fJJ7 Receipts: Power operations _______________________________________ _ Other receipts __________________________________________ _ Adjustment for change in obligated balance __________________ _ -354 -26 -99 -395 -27 -31 -410 -27 -20 Expenditures _______________________________________ _ 1021 1091 150 In 1969, the Tennessee Valley Authority will continue construction of a $392 million nuclear powerplant and a $325 million coal-fired powerplant. These facilities are needed to meet increased power demands in the coming years. Legislation has been proposed to provide the Federal Power Commission with adequate authority to encourage and coordinate comprehensive planning of the Nation's electrical power systems by both public and private utilities. The legislation is essential to achieve improved electrical power system reliability and minimize future risk of extensive power failures. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 111 Water quality and research.-High priority is being given to programs to improve water quality for public water supplies, recreation, fish and wildlife, and industrial use. The budget includes new obligational authority of $225 million in 1969 for grants to communities to assist in the construction of waste treatment facilities. A total of $32 million has been included in the budgets of Federal agencies for water pollution control projects at Federal facilities in order to comply with Federal and State pollution control standards. New obligational authority is also recommended to increase research and demonstration activities to improve water pollution control. Progress is being made in approving water quality standards developed by the States under the Water Quality Act of 1965. Research to find new sources of water for the Nation will also continue. Of particular importance are the efforts of the Office of Saline Water to find lower-cost desalting methods and the Bureau of Reclamation's program to determine the feasibility of augmenting natural precipitation by artificial means. Public domain and Indian lands.-Expenditures of $76 million are estimated in 1969 for the Bureau of Land Management to manage the public domain lands. Mineral leasing activities on Federal lands, including the Outer Continental Shelf, result in large receipts to the Federal Government. Oil and gas production from federally owned lands now represents more than 12% of the Nation's oil and gas production. The Bureau of Land Management and the Geological Survey will improve leasing and management practices relating to the valuable resources of the Outer Continental Shelf. New obligational authority of $113 million is recommended for the Bureau of Indian Affairs to build schools for Indian children and to improve the well-being of Indian people. Funds are included to initiate a kindergarten program in Federal Indian schools and to start construction of seven new schools for Indian children. New obligational authority is also recommended to provide increased assistance for job training, housing, and expansion of industrial activities on or near reservations. Legislation has been proposed to increase the authorization to extend direct loans to Indians for farming and business purposes, and to authorize guarantees of private loans. Other programs to improve the health and education of Indians are included in other related functional sections of the budget. Forest resources.-Federal forest lands provide a large part of the Nation's timber supply and provide recreational activities, including hunting and fishing, for millions of visitors each year. In addition, these lands supply watershed protection and grazing for livestock. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 112 THE BUDGET FOR FISCAL YEAR 196 9 The Forest Service and the Bureau of Land Management have been engaged in a joint analysis o,f their timber sales policies and procedures. After appropriate consultation with interested groups, these agencies intend to put into effect by July 1, 1968, an essentially uniform timber appraisal system within a framework for achieving fair market value returns to the Federal Government from the sale of public timber resources. The Forest Service has also undertaken to improve the management of recreational resources in the national forests. A modern data system is being developed on recreational capacity, visitor days, and facility investments. When fully operational, this system will help forest managers to estimate more accurately future requirements for outdoor recreation and improve decisions on recreation investments to assure the opuimal economic return. Recreational resources.-The number of visitors to national parks and other Federal recreation areas-one indication of the demand for outdoor recreational resources-continues to expand at a rapid rate. Rising land prices, however, make it more and more costly to acquire recreation areas. The 1969 budget gives increased emphasis to the acquisition of recreation lands in newly-authorized Federal areas. New obligational authority of $130 million is recommended for the Land and Water Conservation Fund in 1969, an increase of $11 million over 1968. This amount will permit needed additions of Federal areas and provide for grants of $65 million to the States for acquisition and development of their recreation areas. In view of rising land prices, greater emphasis is to be placed on the use of grant funds for acquiring land in authorized areas rather than developing existing areas. Because revenues expected to be available to the Land and Water Conservation Fund over the next few years will fall far short of requirements consistent with an adequate recreation program, legislation is being recommended to authorize the use of mineral receipts from the Outer Continental Shelf to augment the Fund up to a level of $200 million a year for 5 years. Legislation has been recommended to establish a National Scenic Rivers System and a Nationwide System of Trails. Legislation has also been proposed to authorize the Redwoods National Park in northern California, a National Park and a National Recreation Area in the North Cascades region in the State of Washington, and the Apostle Islands National Lakeshore in Wisconsin. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 113 THE FEDERAL PROGRAM BY FUNCTION Visitors to Federal Recreation Areas "250Millions _ _ _ _ __ ; : . . . . . . ; : . . . . - " - - - ~ - - -.......- - ' - - ~ - - - - ' , . _ _ _ ,.,. :: '.::::::·: . .... . 200- .... ·········· 150 - / .••••• ., . , · - .. _./ Millions -250 ~ ~-:·_- Forest Service .,,.,,,. · / --- - ,,, 150 ···· ·····•::-::<······················· 100-•.•• •··· _ _.,,,,, .,,.. / ~ 100 -- ---- ------- ---- ______________ ..,,.....-··································································TVA 50- --··· ································ o / -·-· Bureau of Redomat1on ! Sport 1 -1958 1959 1960 Calendar Years 1961 1962 1963 SO 196-4 1965 1966 Fisheriu and Wildlife: ! 0 1967 1968 1969 Estimate Mineral resources and fish and wildlife.-Research programs conducted by the Bureau of Mines and the Office of Coal Research will continue to aid industry in the development and use of mineral resources. Emphasis is being given to research on the abatement of air and water pollution and other harmful environmental effects from the use of fossil fuels. A new research program will be initiated in 1969 to seek major improvements in the technology of underground mining and tunneling. The Department of the Interior will conduct research in 1969 on techniques for concentrating shale oil underground, proceed with title clearance on Federal lands, and appraise oil shale resources. Strip mining operations have left ugly scars on millions of acres of lands, and resulted in serious pollution from acid drainage and sediment. Legislation will be proposed to establish a Federal-State system for regulation of surface mining operations. The budget provides for expanded research to accelerate development of the technology to produce low-cost fish protein concentrate. 300-000 Q--68--8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 114 THE BUDGET FOR FISCAL YEAR 1969 General resource surveys.-The topographic mapping program of the Geological Survey is undergoing a major shift in emphasis to help solve the mapping problems of our cities. Over half of some 3,000 existing urban area maps are obsolete. In 1969, emphasis will be given to mapping areas in cities of over 250,000 population which are either unmapped or require resurveying, and to a special "interim" revision program for existing urban area maps. Since conventional revision methods are costly and time-consuming, the Geological Survey has deYeloped a special photogrammetric technique for updating only major changes in buildings, highways, and other physical structures in urban areas. With this technique, called interim revision, topographic maps can be produced at low cost within 1 year. COMMERCE AND TRANSPORTATION Federal programs for commerce and transportation are aimed primarily at promoting consistent and healthy growth of the Nation's economy. Total outlays for these programs are estimated at $8.1 billion in 1969, $268 million more than in 1968. Sizable increases are anticipated for air transportation programs, including further progress on the development of a civilian supersonic transport. Regional economic development efforts and Coast Guard activities will also be augmented. These increases will be partially offset by a decline in the size of the postal deficit, reflecting postal rate increases. Advancement of business.- Business assistance programs contribute to the general welfare of all citizens as consumers as well as to the progress of individual businesses. In addition, these programs increasingly seek to enlist the active participation of the business community in the solution of deep-seated social and economic problems, such as hard-core unemployment and regional economic imbalance. Similarly, technological and finaneial assistance for small businesses is being brought to bear on stubborn urban and rural economic problems. Expenditures for the various activities aimed at the advancement of business are estimated at $153 million in 1969, compared with $160 million in 1968. The decrease is largely the result of increased receipts for the Federal Deposit Insurance Corporation and lesser expenditures for small business assistance. Net lending will total $67 million in 1969, compared with $114 million in 1968. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 115 THE FEDERAL PROGRAM BY FUNCTION COMMERCE AND TRANSPORATION [Fi1cal yean, In million,) E:1penditure1 and net lending Program or agency 1967 actual 1968 1969 eatimate estimate Recommended NOA and LA for 1969 I --------------------1'------------Expndibaca: Advancement of buaineaa: Export promotion 2 •••••••••••••••••••••••••••••••• $18 $20 Small busineas assistance ••.....••.•.•.•...•.....••. 7.5 60 Physical environment 2 ••••••••••••••••••••••••••••• 176 168 38 31 Physical standards................ -· ............... .54 57 Promotion of technology 2 •••••••••••••••••••••••••• 32 Economic and demographic statistics 2 ••••••••••••••• 46 -261 Federal Deposit Insurance Corporation (trust funds) •.. -239 Other aids to busineas 2 ••••••••.••••••••••••••••••• 33 39 Area and regional development: Department of Commerce: Economic development 1.53 assistance ..•...•.•.•...•....•....•.......•..... .52 Appalachia and other 2•••••••••••.••••••••••••••••• 86 1.59 Air transportation: 883 Federal Aviation Administration ............•.•..... 892 .58 Civil Aeronautics Board subsidies •••.••.......•.•... 62 Water transportation: 302 364 Maritime Administration 2 ·--·-. _ ••• _ •• _ ••••••• ·- ••• 497 486 Coast Guard 2 _ •• · · · · · · · · · · · · · - · · · · · · · · · · · · · · · · · · . -7 Other ..........•.......•...•.•.•.•.•.•.•...•..... 5 Ground transportation: Highways: 2 Present programs................................ 4,041 4,363 Proposed legislation••••.•.•.•...•.•.•...•.•.•.•.•.•.........•...• Other·----·-·-_ ................. -··_............. 10 21 Postal aervice....................................... 1,141 1,087 Regulation of buainesa .............. ............. _. _. IOI 100 lnterfund and intragovernmental transactions ( - ) _. ___ . - I -24 Applicable receipts from the public ( - ) __ .. _.. _________ -47 -132 Subtotal, expenditurea •• _. _........••. _.. •. •. • . • $29 43 177 29 59 48 -274 40 $32 13 178 29 61 .50 --------- 37 186 239 229 216 1,228 54 1,064 .53 380 608 12 482 .5.59 5 4,340 51 28 767 l07 -8 -149 4,787 85 21 920 Ill -8 -149 7,996 8,776 7,308 7, 69.5 =====cl==== Net Lending: IOI 114 merce: Economic development assistance._._ •.. _..... Other•.. _......... __ .•...••..•••.................•• 29 8 53 65 88 -8 -8 -6 138 1.58 125 232 Subtotal, net lending••••.....•..........••....•• 67 1.50 Advancement of busineas: Small busineas assistance .... Area and regional development: Department of Com- ----------1---- =~===,!==== To~L........................................ 7,446 7,8.53 8,121 9,008 t Compare• with new obligational authority ( NOA) and lending authority (LA) for 1967 and 1968, a1 follow1: NOA: 1967, $8,653 million: 1968, $9,066 million. LA: 1967, $938 million: 1968, $217 million. • Includes both Federal fund, and tru1t funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 116 THE BUDGET FOR FISCAL YEAR 1969 CREDIT PROGRAM~OMMERCE AND TRANSPORTATION (Fi,cal yeau. In millions( Program or agency 1967 1968 1969 actual ---- estimate estimate Advancement of busineu: Small busineu a11istance: Commitments __________________________________________ _ Disbursements __________________________________________ _ Repayments ____________________________________________ _ ($357) 280 -212 ($429) 410 -296 ($459) 421 -320 68 114 102 Economic development assistance: Disbursements __________________________________________ _ Repayments ____________________________________________ _ 34 -4 58 -5 72 -7 Net lending ________________________________________ _ 29 53 65 Disbursements __________________________________________ _ Repayments ____________________________________________ _ 17 -9 -* -* -8 --8 Net lending ________________________________________ _ 8 -8 -8 1581 125 Net lending 1 _______________________________________ _ Area and regional development: Department of Commerce: Other: Total, net lending ___________________________________ _ 138 I •Leu than $500 thouund. 1 Exclude, transaction, in obligations of Government~1pon1ored enterpri1e1 in the followin 1 amounl1: 1967, $33 million; 1968, $0: 1969, -$34 million. Export, promotion.-To increase our exports, the 1969 budget provides for a substantial expansion of overseas commercial exhibitions and for increased information on potential markets for the sale of American products. These expanded efforts, in turn, will help improve the U.S. balance of payments. The Department of Commerce recently conducted an evaluation of the benefits and costs of its various programs to promote U.S. exports. Based in part on the conclusions of this evaluation, combined supplemental funds for 1968 and increased amounts for 1969 "ill provide for (1) the opening of four new U.S. trade centers overseas, bringing the total of such centers to 10; (2) an increase from 16 to 29 in the number of trade and industrial exhibitions; (3) establishment of a new export planning staff in the Department of Commerce to develop ways to determine and to benefit from export opportunities; and (4) inauguration of a new Joint Export Association program, which will develop techniques to aid in selling U.S. products in other countries. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 117 Small business assistance.-The Small Business Administration will devote a major share of its attention in 1968 and 1969 to encouraging wider participation by private institutions in its financial assistance programs. The agency will attempt to increase private participation primarily through its authority to guarantee loans made by private banks. Physical environment.-The Environmental Science Services Administration (ESSA) will intensify its efforts to improve understanding of the atmosphere, the oceans, and the earth. New obligational authority of $178 million recommended for 1969 will provide for substantial progress in the World Weather Watch, a global weather system, which will lead to more reliable and longer-range weather forecasts .. In 1969, important improvements will be made in the detection and tracking of violent storms through the use of satellites, radar and other techniques. ESSA will also develop further scientific information needed to support Federal programs to advance our capabilities in weather modification and to combat air pollution. Physical standards.-The fundamental objective of our physical measurement activities is to provide improved standards or reference points upon which the Nation's vital scientific and technical measurement system can rely. In the coming year, efforts will be continued to obtain more accurate measurement ~f physical quantities and better definition of physical constants, and to disseminate more widely the vast amounts of technical data published in these fields. These efforts are selected on the bases of scientific and technological opportunities and of economic usefulness to the general public. Economic and demographic statistics.-The Census Bureau will concentrate its major activity in 1969 on preparations for the 1970 decennial census. This census will be an immense undertaking not only because of the increase in total population but also because of the need for more inclusive and intensive coverage. By improving coverage, the 1970 census will provide more valuable data, particularly keyed to the identification and solution of problems in our larger urban centers. Area and regional development.-The major objectives of our economic development programs are to reduce unemployment and to increase family incomes in the Nation's most seriously lagging https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 118 THE BUDGET FOR FISCAL YEAR 1969 areas. In 1969, the Economic Development Administration will stress industrial loans to development centers, and loans and grants for development facilities in our most depressed areas. Total outlays are estimated to increase by $45 million to a total of $251 million in 1969, as projects approved in prior years are completed. Of this amount, $65 million will be provided in the form of net lending. The development program of the Appalachian Regional Commission provides public facilities and services in areas which are critical to the economic growth of the region. Emphasis is being given to the development of a regional transportation system, improved vocational education, health services, and utilization of natural resources. The fixe other regional commissions (New England, Upper Great Lakes, Ozarks, the "Four Corners" region in the Southwest, and the Coastal Plains) \\·ill initiate a new program authorized in the last session of Congress to supplement grants of various Federal agencies as a means of tying Federal programs into an overall regional development strategy. Transportation.-Transportation is one of the Nation's largest industries. Our transportation system is the most extensive in the world, yet it is not adequate for today's needs. To meet the challenge in the years ahead will require concentrated and cooperative action at all levels of government, labor, and industry. Created to provide a single national focus on transportation problems, the new Department of Transportation came into being on April 1, 1967, bringing together in one agency the planning and coordination of Federal transportation programs which previously had been widely dispersed. This organizational improvement will enable the Nation to respond effectively to the opportunities and the problems that confront our mobile society: attacking congestion in the skies and on the highways, improving traffic and motor vehicle safety, and developing new systems for high-speed intercity travel. The proposed reallocation of urban transportation responsibilities bebrnen the Departments of Transportation and Housing and Urban Development will make possible a coordinated approach to urban transportation problems. Expenditures for transportation programs are estimated at $6. 7 billion in 1969, including $4.2 billion from the highway trust fund. The increase of $511 million in total expenditures over 1968 reflects the emphasis being given to improving the capacity, efficiency, and safety of the Nation's transportation system. Air transportation.-In 1969, expenditures of the Federal Aviation Administration are estimated at $1.2 billion, including $877 million for air traffic facilities and services to handle the rapidly increasing https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 119 growth of air traffic both safely and efficiently. New obligational authority of $70 million is requested for new facilities and equipment, including additional components for the National Airspace System. This semi-automated system for air traffic control enhances the ability of air traffic controllers to expedite aircraft movements both en route and at the terminal. The Secretary of Transportation is currently conducting an intensive study of the long-term needs for the Nation's airways and airports. Recommendations for meeting these needs and for financing the costs of air transportation facilities and services will be sent to the Congress when the study has been completed and reviewed. Firm plans for construction and flight-testing of a prototype civil supersonic transport were made last spring. Costs are shared 90% by the Federal Government and 10% by the contractors. The Government share is repayable through royalties on commercial sales of the aircraft. New obligational authority of $223 million is estimated for the 1969 increment of this program, with associated expenditures of $351 million. Appropriations of $65 million for 1970 are being requested for grantsin-aid for airport development. These funds are requested 1 year in advance to aid communities in arranging for their share of the costs of approved projects. Subsidy payments by the Civil Aeronautics Board to air carriers are estimated at $54 million in 1969, a decrease of over $4 million from 1968. This reduction results primarily from improved routes, mergers of subsidized air carriers, and increased revenues from continued growth in air traffic. Water transportation.-Expenditures by the Coast Guard are estimated to amount to $608 million in 1969, an increase of $122 million over 1968. Eleven new cutters and 37 new aircraft will be delivered. These will replace obsolete facilities and improve the capability of the Coast Guard fleet. Also included are funds for a national oceanographic cutter and research funds for further development work on the National Oceanographic Data Buoy Network and other initiatives in the field of marine sciences. The Coast Guard also performs a military support role in Vietnam. Patrol boats and cutters are engaged in the surveillance of small craft to prevent the infiltration of enemy reinforcements and supplies. The Maritime Administration in the Department of Commerce provides assistance to ocean shipping. Expenditures for this purpose are estimated at $380 million in 1969, an increase of $16 million from 1968. Vessel operating subsidies will remain at about the 1968 leve] as the Government continues to charter subsidized vessels for world- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 120 THE BUDGET FOR FISCAL YEAR 1969 wide shipping. Funds will be provided for the construction of 10 new vessels as part of the continuing program for modernization of the subsidized fleet. Vessels to be put under construction in 1968 and 1969 will have significantly increased cargo capacity and more efficient loading and unloading equipment. These structural improvements will partially offset otherwise higher operating costs. Ground transportation.-Expenditures by the Department of Transportation for highway programs are estimated at $4.4 billion in 1969, an increase of $28 million from 1968. These expenditures are primarily grants to States from the highway trust fund for (1) the 90% Federal share of the cost of constructing the 41,000-mile Interstate Highway System, now almost three-fifths completed, (2) the 50% Federal share for construction of primary and secondary roads, and (3) an expanded Federal program to reduce congestion on urban streets and highways. Commerce and Transportation - Program Trends Thousands - 75 80 75 - 70 65 - Number Granted 60- 55 - 25 -~-=-=-=--=-:::.:.-:.-=:.:.=.:.:.-.:.:.:.:.=.:.:.:.:.=.= I o -----------------0 Millions Thousands - 40 Federal Airways Operations Federal-Aid Highways -30 40- -20 Totol Landings and 20 - M;les Added Tak e: offs Cont rolle d or lmprove:d o ....... 1............,......,__,_..__..__..___.__....__.___.1 1958 60 62 Fiscal Years https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 64 66 j I 68 69 1958 Estimate -10 60 62 I o 64 66 68 69 Estimol< THE FEDERAL PROGRAM BY FUNCTION 121 Legislation has been proposed to transfer financing of forest highways and public lands highways to the highway trust fund, so that costs will be borne by highway users rather than by general taxpayers. Pending legislation would continue the highway beautification program designed to control outdoor advertising and junkyards on Interstate and primary roads and to provide highway landscaping and scenic enhancement on the Federal-aid Highway System. Due to increased costs, highway trust fund revenues under existing legislation ,vill prove insufficient to complete the Interstate System on schedule. For this reason, legislation will be proposed to ( 1) extend the life of the highway trust fund, thereby adding revenues, and (2) increase the sched1iled authorizations for the Interstate System consistent with the new cost estimate. Proposed legislation will also provide an authorization of $1 billion for 1970 for the primary and secondary system, and an additional authorization for 1971. To promote highway and motor vehicle safety, expenditures for research and development of standards and for State and community safety grants are estimated to rise to $99 million, an increase of $53 million over 1968. The amount of grants to States alone is estimated to increase by $44 million, reflecting expanding State and community highway safety programs. Legislation is being proposed to provide contract authorization of $50 million for 1970 for the State and community highway safety program. Together with funds carried over from prior years, this will permit the continued growth of the safety programs. Important new steps will be taken by the Department of Transportation further to ensure the safety and protection of motor vehicle drivers and passengers on the Nation's highways. In addition to motor vehicle standards which became effective January 1, 1968, new and improved standards will be issued effective January 1, 1969. A new uniform tire grading system is also planned by the Federal Highway Administration. As new vehicles meeting these standards come into use, fatalities and injuries from highway accidents should diminish. Legislation is pending to authorize the Department of Transportation to regulate the safety of gas pipelines. The newly created Federal Railroad Administration performs safety regulation and inspection activities, sponsors research on railroad safety problems, carries out high-speed ground transportation research and demonstrations, and manages the Alaska Railroad. Demonstrations of improved rail passenger service between Boston, New York, and Washington, to begin in 1968, will continue in 1969. Postal service.-Obligations for postal services are estimated at $7.5 billion in 1969, compared with $7.0 billion in 1968. Revenues and reimbursements are expected to rise from $5.8 billion in 1968 to $6.6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 122 THE BUDGET FOR FISCAL YEAR 1 9 6 9 billion in 1969~reflecting recently adopted postal rate increases, as ,rnll as increased mail volume. The following table summarizes the program of the Post Office Department. SUMMARY OF POST OFFICE DEPARTMENT PROGRAM [Fiscal years. In millions] Item 1967 1968 1969 actual estimate estimate Obligations by major program: Direct services to mailers ____________________________ _ Processing of maiL ____ ----- __ --- --- -- -- ----- -- - ----- i Delivery services_____________ ______ ____________________ _ Transportation_ _____________ ______ ___________________ _ Auxiliary services _______________________________________ _ Enforcing postal laws ____________________________________ _ Research and development _______________________________ _ General postal support_ __________________________________ _ Total obligations ___ _ $589 1,636 2,665 989 109 29 12 255 $650 1,829 2,960 l, 123 121 35 16 260 $679 1,965 3,134 1,215 124 44 29 307 6,284 6,994 7,497 5,113 l, 171 5,820 l, 174 6,577 920 6,284 6,994 7,497 Financing: Revenues and reimbursements__ __________ _ New obligational authority used ____________ _ Total financing _______________________________ _ -- - -- ! Increases in obligations in 1969 primarily reflect continuing growth in mail volume, increases in pay scales for postal workers, and additional investments to modernize the postal service. Mail volume is expected to increase by 3.8% in both 1968 and 1969. Estimates of mail volume compared to recent experience are shown in the following table: MAIL VOLUME ---------- ! 1964 1965 1966 1967 ] actual actual actual actual estimate estimate 71,873 3.2 75,607 5.2 79,165 4.7 82,159 3.8 JI - Millions of pieces ____________________ 69,676 Percent increase from previous years______ 2. 7 1968 1969 85,240 3.8 The lower rate of incrense in mail volume estimated for 1968 and 1969 assumes n return to more normal rates of increase from the abnormally high rates prevailing in 1966 and 1967. The postal deficit, excluding public service costs, will be $78 million, compared with $449 million in 1968 and $590 million in 1967. The reduction in the postal deficit for 1969 reflects increases in revenue totaling $389 million in 1968 and $959 million in 1969, resulting from https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 123 the postal rate increases effective January 7, 1968 and other rate increases effective in 1969. This reduction is partially offset by additional costs of $329 million due to pay increases effective in October, 1967. HOUSING AND COMMUNITY DEVELOPMENT The goal of the housing and community development programs, set by the Housing Act of 1949, is the realization of a decent home and a suitable environment for every American family. Progress toward the goal of decent housing is assisted by Government programs to support the private market. For those families who are unable to afford housing at the prices which must be charged in the private market, the Government provides additional assistance in the form of low interest loans for rental housing for moderate income families, and annual contributions to local public authorities providing housing for low income families. The rent supplement program, the latest addition to the variety of programs aimed at reaching our national housing goal, provides payments to private housing sponsors on behalf of low income tenants. Under these programs, over 920,000 homes will have been provided for families with low and moderate incomes by the end of 1969. A 10-year program is proposed to provide 6 million housing unitshomes and apartments-for low and moderate income families. The program will begin in 1969, under existing and proposed legislation, with 300,000 units. Expenditures for housing and community development are expected to double, rising from $697 million to $1.4 billion in 1969. The increase reflects higher grant disbursements as the Model Cities program gets underway, and progress is made on projects approved in prior years for such essential purposes as public housing, urban renewal, water and sewer facilities, open space, mass transportation, and neighborhood facilities. Net lending is estimated to decrease by $1.9 billion to $1.4 billion, primarily because of an anticipated reduction in mortgage purchases by the Federal National Mortgage Association (FNMA). Because considerable time is required for advance planning and construction, program decisions for housing and community development are made well in advance of the time of disbursement. These actions commit the Government to provide grants, loans, or loan insurance for housing or urban development projects. Therefore, commitment levels provide a better measure of current program activity than do net cash outlays, which simply represent the effect of previous decisions on the current budget. Accordingly, much of the discussion in this section is based on commitment levels. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 124 THE BUDGET FOR FISCAL YEAR 19 6 9 HOUSING AND COMMUNITY DEVELOPMENT [Fiscal years. In millions[ Ezpenditure1 and net lending Program or agency 1967 1968 actual 1969 estimate eatimate Recommended NOA and LA for 1969 I --E:rpenditarea: Public housing programs ____________________________ _ Aida to private housing: Department of Housing and Urban Development: Supplements to the private market: Rent supplement program _____________________ _ Other __________ - -- - - -- - -- - - - - - - - - - - - - - -- - - - - Support of the private market: Federal Housing Administration and other 2________________________ _ Federal Savings and Loan Insurance Corporation _____ _ Urban renewal and community facilities: Model Cities _____________________________________ _ $251 $297 $350 $380 I -17 4 -21 16 16 17 6 -7 -201 -138 -384 I 25 Aids to improved land use: Urban renewal__________________________________ 370 499 Open space land grants___________________________ 19 60 Urban planning assistance and other__ _____________ 22 31 Proposed metropolitan development legislation _____________________ _ Assistance for public facilities: 42 100 Urban ma11 transportation_______________________ Basic water and sewer facility grants_______________ 6 90 Neighborhood facility grants and other___ .. _________ 12 22 Research and other________________________________ 32 39 Proposed legislation _________________________________ _______________ _ National Capital region 1______________________________ 66 90 Interfund and intragovernmental transactions ( - ) __ _ ___ -19 - I5 Applicable receipts horn the public ( - ) ___ ____ _________ * * Subtotal, expenditures __________________________ _ -----577 697 -110 ---------378 --------- 250 1,000 699 750 60 --------- 46 3 55 JO 150 190 130 150 39 44 55 75 14 30 104 140 -14 -14 * --------1,429 2,833 - - - ---- Net Lendinr : Public housing programs ____________________________ _ Aida to private housing: Department of Houaing and Urban Development: Supplements to the private market_ ______________ _ Support of the private market 2 __________________ _ Federal Savings and Loan Insurance Corporation _____ _ Urban renewal and community facilities ________ _______ _ National Capital region ______________________________ _ 14 22 744 248 1,269 2,440 -8 44 42 114 19 16 --- --Subtotal. net lending_____________________________ 1,708 3,257 -16 --------1,205 456 709 809 -20 --------80 61 141 65 1,355 2,135 _ _ _ _ _ _ _ ====!,=== Total__________________________________________ 2,285 3,954 2,784 4,968 ---------------------------------- • Le11 than $500 thousand. I Compares with new obligational authority (NOA) and lending authority (LA) for I 967 and 1968, as follows: NOA: 1967, $1,503 million: 1968, $1,869 million. LA: 1967, $5,421 million; 1968, $2,095 million. 2 Include■ both Federal funds an1 trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 125 Public housing programs.-Last year, legislation was requested to increase and accelerate the public housing program. Early enactment will allow work to start on 65,000 new homes in 1968 and 85,000 in 1969. In addition to the conventional method of having local communities plan and build this housing, new techniques developed over the past 2 years will be emphasized. Existing housing will be leased or purchased-and where necessary, repaired-to increase the supply of standard housing available for low income families. Private builders will speed public housing production by building housing on their own 'sites and then selling it to local authorities under the new "turnkey" approach. In many cases, private firms will also manage the housing, and increasingly, individuals or groups of tenants will manage their own homes. Local housing authorities borrow the money to finance construction or purchase of public housing units. Expenditures in the public housing program represent the Federal contribution to meet that portion of the debt service which cannot be paid from rent receipts. Expenditures will rise by $53 million to $350 million in 1969. Net lending, which provides temporary financing during the initial stages of housing development and varies from year to year, is expected to decrease by $38 million. Aids to private housing.-The Federal Government provides a number of direct and indirect assistance programs to encourage more and better private housing. However, receipts exceed expenditures for this category because of the premiums received on insured mortgages and savings and loan accounts. Net receipts from Federal aids to private housing are estimated to decrease by $82 million to $457 million in 1969, reflecting increased expenditures in the rent supplement program and lower net revenues in various loan and insurance programs. Net lending is expected to decrease by $1.9 billion to $1.2 billion, as private investors provide more mortgag~ financing under legislation proposed to lift the ceiling on interest rates on Government-insured and guaranteed mortgages, and to transfer secondary market mortgage purchase activities to private ownership. Supplements to the private market.-The Government helps families with low or moderate incomes obtain decent, privately-sponsored housing at prices they can afford by making payments to supplement their monthly rent or by lending money at low interest rates. The successful rent supplement program has shown the way for increasing the supply of standard housing for low-income families by combining private ownership and Federal financial aid. The Government pays the private housing sponsor-nonprofit organizations or limited dividend corporations-the difference between the rent a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 126 THE BUDGET FOR FISCAL YEAR 1969 CREDIT PROGRAMS-HOUSING AND COMMUNITY DEVELOPMENT [Fiscal years. In millions! Program or agency 1967 1968 1969 actual estimate estimate Public housing progra1111: Disbursements __________________________________________ _ Repayments ____________________________________________ _ $158 -144 $223 -201 $226 -242 Net lending ________________________________________ _ 14 22 -16 I, 067 -236 2,307 -295 -314 Aids to private housing: Department of Housing and Urban Develoe!!}~nt: Federal National Mortgage Association (FNMA): Secondary market operations (trust fund): Disbursements ____________________________________ _ Repayments ______________________________________ _ 958 1----1-----1---- Net lending ____________________________________ _ Special assistance functions: Commitments ____________________________________ _ Disbursements ____________________________________ _ Repayments ______________________________________ _ 831 (807) 178 -69 2,012 (959) 725 -86 643 (575) 520 -110 1----1-----1---- Net lending ____________________________________ _ Urban renewal rehabilitation loans: Disbursements ______________________________________ _ Repayments ________________________________________ _ 109 639 410 5 * 17 -1 20 -1 5 17 19 (85) 90 (85) 100 -2 89 98 1----1----1---- Net lending ______________________________________ _ Housing for the elderly: Commitments ______________________________________ _ (84) Disbursements _______________________ - ______________ _ 78 Repayments ______________________ ------ - ________ ---- ,___ -1_, Net lending ______________________________________ _ 77 -1_ ___ Federal Housing Administration and other: Disbursements 1 ____________________________________ _ 398 714 655 Repayments 1______________________ - - - - --- - _ - ---- __ _ -304 -227 -220 1----1----1---Net lending ______________________________________ _ Federal Savings and Loan Insurance Corporation: Disbursements ________________________________________ _ Repayments __________________________________________ _ 494 428 53 -9 12 -20 94 -20 Net lending ________________________________________ _1 - - - - - 1 - - - - 1 - - - - 44 -8 (27) (50) -3 45 -4 -20 Urban renewal and community facilities: Public facility loans: Commitments _______________________________ - _____ - - __ Disbursements ________________________________________ _ Repayments __________________________________________ _ 59 (40) 54 -4 1----1----1---- Net lending __________________________ · ____________ _ Urban renewal and other: Disbursements ________________________________________ _ Repayments __________________________________________ _ 56 41 50 602 -543 453 -453 -444 455 1----1----1---- II 58 Net lending ________________________ -- - - -- - - - - ------- National Capital region: Disbursements __________________________________________ _ Repayments ____________________________________________ _ 22 -3 19 -3 68 -3 1----1----1---- Net lending ________________________________________ _ 19 16 65 l====l====I,=== Total net lending ___________________________________ _ 1,708 3,257 1,355 •Leu than $S00 thousand. I Disbursements and repayments exclude FNMA purchases from FHA in the following amounts: 1967. $S21 million; 1968, $481 million; 1969, $192 million. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 127 THE FEDERAL PROGRAM BY FUNCTION family can afford and the rent required to pay the total costs of the apartment. As this housing is completed and occupied, expenditures will increase by $12 million to $16 million in 1969. The Congress has authorized contracts committing the Government to make up to $42 million of rent supplement payments annually. The 1969 budget requests an additional $65 million of annual rent supplement authority. The largest current lending program supplementing the private housing market provides rental housing for families with moderate incomes. The Federal National Mortgage Association purchases mortgages with 3% interest rates for such housing under its special assistance functions. These low interest rates permit families with incomes too high to qualify for public or rent supplement housing, but too low to afford other available standard housing, to obtain better accommodations. Commitments of $500 million are estimated for this program in 1969. Housing and Community Development - Program Trends Thousands $Billions 125 - 60 Low and Moderate Income Housing 100 - 40 ~ 20 75 - so 25 ...................._...............................___________ 0 Thousands 2.0 - Thousands - Urban Renewal 800 Low-Rent Public Housing - 600 0 _,_................_ _ _..._........................................__. 1958 60 Fiscal Years 62 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 64 66 400 ~ 200 ....._............................................._ _ _..._....__....._ 0 68 69 1958 Estimate - 60 62 64 66 68' 69 Estimate 128 THE BUDGET FOR FISCAL YEAR 1969 Also under its special assistance programs, the Association purchases Government-insured or guaranteed mortgages which generally have the qualities required by private investors but which are at the time not readily acceptable by them. In the past 2 years many of these mortgages have been offered to the Association for purchase because the maximum interest rate permitted by law has been lower than the interest rates in the mortgage market generally. In addition, when private investors sought higher yielding investments than fixed interest-rate mortgages, the Congress authorized the Association to purchase $1 billion of Government insured or guaranteed mortgages on newly constructed low-cost housing. In 1968, the Association expects to commit $459 million for market rate mortgages. However, legislation is proposed to permit interest rates which will enable these mortgages to be financed privately. The budget for 1969, therefore, includes commitments for only $75 million of these mortgages, limited to types which are unacceptable to the private market because ,of their unfamiliarity, rather than their lower-than-market yield. Net lending for all FNMA special assistance functions is estimated to be $410 million, down $229 million from 1968, primarily reflecting the anticipated return to reliance on the private market. Support of the private market.-The Federal Government supports the private housing market primarily by (1) insuring mortgages through the Federal Housing Administration (FHA), (2) insuring accounts in savings and loan associations (which invest heavily in mortgages) through the Federal Savings and Loan Insurance Corporation (FSLIC), and (3) purchasing insured mortgages through the Federal National Mortgage Association. The FHA expects to make commitments to insure mortgages on 1.1 million housing units in 1969, compared to 914,000 units in 1968. These commitments will facilitate $14.2 billion of private financing for the construction or sale of houses and apartment buildings. However, the expenditure impact of these programs on the Federal budget is small. Operating expenses and the payment of insurance claims are more than offset by collections of insurance premiums and proceeds from sales of acquired property. As a result, net receipts are estimated at $87 million in 1969, which is $8 million lower than 1968. The FSLIC expects net receipts of $378 million in 1969, slightly lower than in 1968. This reflects the continuing excess of premium payments and prepayments over expenses, permitting insurance reserves to build up toward the statutory goal of 2% of insured savings. Net lending in support of the private housing market occurs primarily in the Federal National Mortgage Association's secondary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 129 market operations. The Association buys federally-insured or guaranteed mortgages when mortgage money is scarce, and sells them when it is more readily available. In 1968, a record $2.4 billion of mortgages are expected to be purchased. The anticipated revision in interest rates on insured or guaranteed mortgages under proposed legislation is expected to increase the supply of private mortgage money in 1969. In addition, legislation is proposed to accelerate the transfer of the Association's secondary market operations to private ownership, as anticipated by the FNMA Charter Act. As a private corporation, these operations will not be subject to the constraints of the Federal budget and can raise money in the private capital market to meet mortgage purchase needs. The Federal Housing Administration's insurance activities in support of the private market also include some incidental lending. FHA acquires mortgages in connection with (1) insurance claim payments and (2) Government financing of the sale of acquired properties when private mortgage funds are scarce. FNMA purchases the mortgages which finance the sale of FHA-acquired homes, primarily in its management and liquidating programs. In 1969, the Association expects to purchase $200 million of such mortgages, down from $500 million in 1968, reflecting the expected relaxation of the restriotive ceiling on mortgage interest rates. Urban renewal and community /acilities.-Federal assistance in the solution of community problems will continue to emphasize the coordination of all Federal, State, and local activities and resources. Expenditures are expected to increase by $567 million to $1.4 billion in 1939 as the model cities program enters its first full year of operation and urban renewal and public facility projects are completed or make continued progress. Net lending, primarily for public facilities in small communities and preliminary urban renewal financing, is estimated at $61 million, $19 million higher than 1968. Model Oities.-Sixty-three cities have launched detailed planning of their programs to upgrade the physical and social fa bric of large blighted areas. These plans will demonstrate that the interrelated problems facing the people of our cities can be attacked, melding into a unified program the many diverse efforts to improve such services as education, skill training and employment, health, welfare, recreation, and physical development. Some of these plans are expected to be completed late in 1968, and the remainder in early 1969. The first 63 cities will then begin their action programs with the aid of supplementary grants to help cover costs not met by other Federal aids. These action programs will help rejuvenate 65 blighted areas containing 3. 7 million people. 300-000 0-68-9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 130 THE BUDGET FOR FISCAL YEAR 19 6 9 Approximately 70 more cities are expected to start preliminary planning for model cities programs in late spring, 1968; some will be able to start their action programs before the end of 1969. The budget provides new obligational authority of $500 million for supplementary grants, which together with $200 million appropriated in 1968 will allow grant commitments of $700 million over the 2-year period. In addition, $500 million will be available from the urban renewal program. Total expenditures in model cities in 1969 are expected to reach $250 million, compared to only $25 million in 1968. Aids to improved land use.-Through the urban renewal program, the Federal Government aids local communities beset by physical deterioration and rising costs to transform slum-laden land into attractive areas that serve the community's people. First priority is being given to projects that increase the supply of housing for low and moderate income families or that provide jobs for those now living in blighted areas. Total commitments for urban renewal projects, including $500 million from authority available specifically for model cities, are estimated at $1,250 million in 1969. An advance appropriation to fund $1.4 billion of commitments in 1970 is also rroposed in the 1969 URBAN RENEWAL COMMITMENTS AND PROGRAM ACTIVITY ( Fiscal years. Dollars in millions) Program Redevelopment or rehabilitation projects _____________________ _ Number of new projects _________________________________ _ Acres of land ___________________________________________ _ Code enforcement projects _________________________________ _ Number of new projects _________________________________ _ Acres of land ___________________________________________ _ Rehabilitation grants ______________________________________ _ Number of grants _______________________________________ _ Demolition of condemned structures and other_ _______________ _ Number of demolition projects ____________________________ _ Structures demolished ___________________________________ _ Urban renewal demonstrations ____________________ " _________ _ Number of projects _____________________________________ _ Community renewal programs ______________________________ _ Number of cities assisted _________________________________ _ Total commitments _________________________________ _ Deduct authority available from prior years __________________ _ 1967 1968 1969 actual e1timate estimate $818 176 16,700 $56 46 25,700 $15 11,000 $8 13 1,768 $2 $1. 112 205 20,500 $102 78 43,600 $18 13,000 $6 $721 151 14,250 $50 39 20,163 $11 7,959 $10 32 4,495 $1 6 15 $6 15 $10 24 $797 -72 $908 -58 New obligational authority____________________________ $725 Model Cities portion _______________________________ ---------- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $850 ($100) 15 2,100 $2 20 $10 28 $1,250 --------- $1,250 ($500) THE FEDERAL PROGRAM BY FUNCTION 131 budget. The number of projects being planned or carried out will increase by 72 to 1,632 in 1969, and the number completed will increase by 100 to 509. The open space land program provides grants to localities with comprehensive development planning and programming for the entire urban area. In 1969, grants of $85 million will be committed for about 600 projects. These projects will (1) preserve 76 thousand acres of open space land, primarily in the growing suburbs, (2) create 120 parks in developed areas of the cities, and (3) support beautification programs in 100 cities-including landscaping small, "vest pocket" parks in densely crowded areas. The urban planning assistance program aids States, regions, metropolitan areas, and small cities to plan their development and to program and coordinate their various activities. In 1969, $55 million will be committed to aid 980 planning bodies. Legislation is proposed to authorize funds for the initiation of the metropolitan development incentive grant program in 1969. These incentive grants will encourage more orderly planning and development of our metropolitan areas. The 1969 budget inclu;d~s $10 million of commitments for this purpose. Assisfance for public jacilities.-Coordinated, interjurisdictional comprehensive planning and programing is also one of the primary aims of the public facility grant programs. Such planning is a requirement in the urban mass transportation and water and sewer grant programs. Grants for neighborhood facilities can be made only if they are necessary for local health, welfare, recreational, or similar community service programs, and are consistent with comprehensive planning for the community. In the urban mass transportation assistance program, grants totaling $165 million will be committed to aid (1) the construction and acquisition of equipment for 25 mass transportation systems, (2) the planning of 17 systems, and (3) the training of 100 system managers. Initial studies for the design of a mass transportation research program are approaching completion, and $25 million of commitments is proposed for carrying out the first stages of such a program in 1969. Needed water and sewer facilities will be constructed in 290 communities through the assistance provided by $150 million of commitments. Neighborhood centers bring needed health, education, employment, recreation, and other social services close to the disadvantaged people in the crowded areas of our communities. These centers will be aided https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 132 THE BUDGET FOR FISCAL YEAR 196 9 through the commitment of $40 million of grants for the construction of buildings to house the centers, $10 million more than in 1968. This sum will aid 130 centers. Net lending for public facilities is primarily for loans to smaller communities, which have the greatest difficulty in borrowing in the private market on reasonable terms. In 1969, commitments for $40 million of loans are expected, primarily for local hospitals and water and sewer facilities. Research and other.-The long term solution of problems in the field of housing and urban development requires a better understanding of the forces affecting urban growth and decay, the development of new and lower cost methods of providing housing which meets the requirements of urban growth, and assessment of the effectiveness of Federal, State, local, and private activities aimed at solving these problems. A new program of research to accomplish these objectives is being started in 1968 with a $10 million appropriation. This appropriation will be doubled in 1969 as the program enters its second year. This program will include support of a private, nonprofit Institute for Urban Development being set up to carry out some of the basic conceptual studies required. The ability of States and localities to cope with their problems, now aided through the urban planning assistance program, will be further strengthened by two other programs started in 1968 and increased in 1969. Training for local officials involved in community development programs is assisted by grants to support State training programs. Commitments for these grants will rise from $3 million in 1968 to $7 million in 1969. Technical assistance and information relating to community problems and programs can be provided by States with the aid of Federal grants, for which commitments will total more than $2 million in 1968 and $5 million in 1969. Proposed legislation.-The budget provides for new housing and community development legislation which will be described in a separate message. These efforts will be supported by supplementary requests totaling $30 million of new obligational authority, resulting in associated expenditures of $14 million in 1969. National Capital region.-Last year the Nation's Capital began a new era of modern government with the replacement of its outmoded commission form of government by a single executive head and a nine-member city council. This represents an initial step toward home rule for Washington residents. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 133 An improved means of meeting the needs of the citizens was provided last year when Congress enacted legislation relating the level of borrowing from the Federal Government to a specific percentage of the District's revenues. The 1969 budget assumes enactment of the second step to regularize the Federal payment to the District. Congress will again be asked to place the Federal payment authorization on a formula basis, equivalent to 25% of the District's revenues. The fiscal and program needs of the City are set forth in more detail in the separate District of Columbia budget which will be transmitted at a later date. HEALTH, LABOR, AND WELFARE Federal programs to improve the economic, social, and physical well-being of all Americans have been substantially expanded and improved in recent years. Increased emphasis has been given to activities which provide special assistance to the disadvantaged and needy groups of our society, such as the antipoverty program, and to measures, such as increased social security benefits, which lessen economic insecurity. Medicare represents a major stride in overcoming financial barriers to quality health care. Manpower programs have been restructured and expanded to help workers acquire the skills needed in our complex economy. Expanded efforts will be made to reduce air pollution and to help meet the health needs of all of our people through increasing the supply of health manpower and through advancing our understanding of the causes of disease. The 1969 budget provides for progress in these and other activities vital to the development of the Nation's human resources. Outlays in 1969 for health, labor, and welfare programs are estimated at $51.4 billion, including $39.5 billion of benefit payments from self-financed trust funds for retirement and social insurance and for Medicare. This represents an increase of $5.0 billion over 1968, largely for the higher social security benefits enacted in 1967 and for payments for health care. Health services and research.-Expenditures and net lending for Federal activities that affect the health of the American people are estimated at $10.7 billion in fiscal year 1969, $1.2 billion more than in 1968, and up by $9.8 billion over 1960. Of this rise, $1.1 billion is accounted for by the increase in the Medicare and Medicaid programs. The remaining increases are primarily directed toward expanding the supply of health personnel, improving maternal and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 134 THE BUDGET FOR FISCAL YEAR 196 9 HEALTH, LABOR, AND WELFARE (Fiscal years. In millions] Expenditures and net Recom- lending mended NOA and LA for 1969 1 Program or agency 1967 1968 1969 actual estimate estimate --- Expenditures: Health services and research: Medical research __________________________________ $1,014 Facilities and medical manpower_ ___________________ 445 Organization and delivery of health services __________ 43 Medicare (trust funds) 3 ___________________________ 3,396 Medicaid and other financing _______________________ 1,366 Direct health care _________________________________ 158 Prevention and control of health problems and other __ 351 Labor and manpower: Manpower programs 2 _____________________________ 589 Other 2 ___________________________________________ 480 $1.065 $1,079 554 577 111 5,064 I, 997 177 486 802 524 126 5,785 2,398 194 521 926 558 Proposed trade adjustment legislation ________________ -------- -------8 Economic opportunity programs: Work and training programs ________________________ 1,003 927 737 Community action programs and other 2 _____________ 747 926 994 Retirement and social insurance (trust funds): Old-age, survivors, and disability insurance 3 __________ 21.725 23,918 27,372 Unemployment insurance ___________________________ 2,189 2,564 2,558 Civil service retirement and disability ________________ 1,965 2,121 2,364 Railroad retirement 3 _______________________________ 1,315 1,415 1.490 Other•... ___ . __ ........ __ ...... ______ . ___ .. ______ -72 -77 -78 Public assistance and other welfare: Public assistance (excluding medical assistance) _______ 3,041 3,484 3,605 Vocational rehabilitation .. ____ ... _____ ... ___ .... ___ 261 363 434 School lunch, special milk, food stamp, and other__ ____ 522 616 7IO Proposed food stamp legislation. ____________________ -------- -------15 Proposed juvenile delinquency legislation. ___ . ________ -------- -------20 lnterfund and intragovemmental transactions ( - ) 3 _____ -694 -641 -711 Applicable receipts from the public(-) ________________ -3 -61 -5 --Subtotal, expenditures. __________________________ 39,512 46, 396151. 945 Net Lending ______________________________________ $1,235 694 164 6,842 2,425 196 695 922 614 IO 1,075 I, IOI 31,031 3,557 3,740 1,905 13 3,703 443 719 20 25 -711 -3 60,413 2, 1 -538 -538 Total_ _______ - - __ - - . - - - - ... - - - - - - - - - - - - - - - - - - - - 40,084146,417151,407 59,875 572 I 1 Compares with new obligational authority (NOA) and lending authority (LA) for 1967 and 1968, as follows: · NOA: 1967, $47,841 million: 1968, $53,131 million. LA: 1967, $570 million; 1968, $18 million. 2 Includes both Federal funds and trust funds. 3 Because of their magnitude, interfund and intragovernmental transactions have been deducted from the appropriate figures, as follows (in millions of dollars): Federal fund contributions to trust funds: Medicare _________________________________________ _ 1967 950 /968 I, 280 Military service credits _____________________________ _ 122 123 OASL. _. ____ . __ . _... _______ . _.. ________ . ____ .. __ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis /969 I, 360 226 123 THE FEDERAL PROGRAM BY FUNCTION 135 child health care, and strengthening the prevention and control of health problems. New obligational authority recommended for health construction grant programs has been reduced from $567 million in 1968 to $363 million in 1969. This reduction has been offset by increases of $207 million to expand services for maternal and child health, attack air pollution, support States and regions in planning and providing health services, increase the number of health personnel, provide direct care for Indians and other Public Health Service beneficiaries, and staff community mental health centers. To carry out these increased programs more effectively, the Secretary of Health, Education, and Welfare is reorganizing the health activities of the Department and legislation is being proposed to provide a new health service personnel system. Medical, research.-New obligational authority for biomedical research financed by the Federal Government will represent about 65% of the combined public and private investment in such activities in 1969, and about 45% of the Federal funds proposed to be devoted to the development of health resources. This distribution reflects the high priority placed on attacking health problems through a better understanding of the causes and treatment of disease. The development of the polio and measles vaccines and the potential evidenced by recent efforts with artificial organs and organ transplantation attest to the contribution biomedical research can make to our capability for dealing with health problems. In 1969, $1.2 billion in new obligational authority is requested for research purposes, of which $855 million will support biomedical research and development projects; another $180 million will be provided for institutional support of research and facilities; and $200 million will be available for research training. Facilities.-Since 1960, Federal funds have assisted in the construction or modernization of 213,000 hospital and long-term care beds through the Hill-Burton program. In 1969, expenditures of $215 million are estimated for assistance in the construction and modernization of general hospital and diagnostic facilities and $25 million will be spent to assist construction of community mental health centers. Through these expenditures, it is estimated that 31,000 beds for patients requiring intensive and extended care will be modernized or added to the available supply, and 110 more community mental health centers will come into being. The authorization for the Hill- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 136 THE BUDGET FOR FISCAL YEAR 1969 HEALTH RESOURCES (Fiscal years. Dollars in millions) 1960 1967 1968 1969 actual actual estimate estimate Cumulative number of beds meeting construction standards at end of year ______________________ (1) 503,934 535,000 560,000 Total number of beds constructed or modernized during year _________________________________ (') 33,000 32,000 32,000 20,598 $179.8 18,500 $173.0 19,560 $187.1 Program indicator General hospitals: Number of beds constructed or modernized by Hill-Burton program during year_ _____________ Obligations ________ .. __________________________ 17. 140 $139.8 Long-term care facilities: Cumulative number of beds meeting construction standards at end of year_ _____________________ (') 450,328 480,000 510,000 Total number of beds constructed or modernized during year _________________________________ (') 65,000 66,000 64,000 Number of beds constructed or modernized by Hill-Burton program during year_ _____________ Obligations ___________________________________ 4,055 $13.5 9,760 $54.7 11,345 $63.0 11.410 $72.7 258 367 477 $44.3 $33.9 42.2 $45.4 $51.2 57.8 $60.0 $64.3 71.1 95 18 $87.9 34,972 8,151 100 17 $84.0 36,244 8,646 104 18 $92.7 37,487 8,737 ---------- 14,880 $14.9 18,001 $19.1 21. 178 $21.3 118,849 29,990 139,000 38,700 149,000 39,500 153,000 40,200 ---------- 17,040 $9.7 32,932 $25.0 38,700 $25.6 Community mental health centers: Established through Federal aid (cumulative) ____ ---- ·----Obligations for: Construction aid __ • _________________________ ---------Staffing support_ _______ • ____________________ ---------Population served (millions) ____________________ ---------Medical schools: Number in the Nation _________________________ 91 Constructed or improved by Federal aid __________ ---------Obligations for construction ____________________ • ---------Total number of students enrolled _______________ 31.999 Number of physicians graduated ________________ 7,508 Number of students receiving Federal scholarships or loans. ___________________________________ Obligations for scholarships and loans ____________ ---------Nurses: Total number of students enrolled _______________ Number of students graduated __________________ Number of students receiving Federal scholarships or loans ____________________________________ Obligations for scholarships and loans ____________ ---------I Comparable data not available. Burton program expires June 30, 1969. An advisory commission has been appointed to evaluate the type and number of health facilities required in the future and the Federal supp.::rt needed. Medical manpower.-The need for more doctors and other trained health manpower requires an intensified national effort to enlarge https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 137 medical school capacity and to improve and accelerate medical education and training. These objectives will be sought in legislation to continue and modify existing programs. The budget provides $85 million to support construction of educational facilities for health professionals and $197 million to improve curriculum, staffing, and experimental programs and to provide student aid. Organization and delivery of health services.-To meet the rising demand for health services and disseminate research findings to doctors and other health personnel, the Government has taken three major steps. First, the National Center for Health Services Research and Development has been established to support investigations and experiments aimed at providing more services through new and imaginative use of resources. For these purposes, $29 million of new obligational authority is requested for 1969. Second, Partnership for Health grants will encourage States to develop plans to meet health needs and service requirements without wasteful duplication in the use of resources. New obligational authority of $25 million will be requested for these important planning functions in 1969. Third, the Regional Medical Program was inaugurated in 1966 to provide a unifying focus for the health resources of a region. Patient, physician, hospital, and the centers of scientific and academic medicine are linked together to provide the latest advances in medical knowledge and techniques to the entire population in the region. For 1969, new obligational authority of $69 million is requested to enlarge the scope of planning activities and to begin actual operation of 54 regional programs. Legislation will be proposed to extend the program. In addition, under the 1967 Social Security Amendments, the Department of Health, Education, and Welfare will experiment with new methods of reimbursing hospitals and physicians to provide incentives under the Medicare and Medicaid programs to assure high quality services more economically. Medicare, Medicaid, and other financing.-The Medicare and Medicaid programs have virtually eliminated financial barriers to medical care for the aged and have made it possible for the poor to receive an increasing volume of comprehensive medical services. Almost all of the 19.7 million aged persons in the Nation are insured by- Medicare against major hospital and nursing home costs, while over 18 million have also voluntarily enrolled in the Supplementary :Medical Insurance (SMI) program covering physicians' charges. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 138 THE BUDGET FOR FISCAL YEAR 1969 Health, Labor, and Welfare - Program Trends Thousands Millions - 25 40 - Hill-Burton Program Social Security - 20 30 - - - 15 20 - 10 10 - - 5 0 Thousands 60 - 50 - Thousands - 250 M edical and Nursing Students Vocational Rehabilitation - 200 40 - 150 30 - - 100 20 - - 50 10 0 ......_._............__.__._.__,__.,___..,__.......__. 1958 60 62 Fiscal Ycars 64 66 68 69 1958 Estimate 0 60 62 64 66 68 69 Estimate Premium payments for SMI will rise from $3 to $4 per month on April 1, 1968, due to increased costs and to changes in benefits provided in the 1967 Social Security Amendments. Medicare trust fund expenditures in 1969 are expected to amount to $5.8 billion, representing about 50 % of all medical costs incurred by the aged. Grants to the States for medical assistance to about 8.5 million needy persons will increase by $361 million over 1968 to $2.1 billion in 1969, reflecting the expansion of Medicaid from 43 to 48 States and rising medical prices. As a result of higher costs of medical care and a greater than anticipated number of persons using Medicare and Medicaid, supplemental appropriations of $941 million will be required for these programs for 1968. The 1967 Social Security Amendments limit Federal Medicaid matching payments to medically _indigent persons whose income is not more than one-third greater than the welfare payments made by https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 139 THE FEDERAL PROGRAM BY FUNCTION the States under aid to families with dependent children. For States already in the Medicaid program, this limitation does not become fully effective until January 1970; however, it is immediately effective for new States entering the program. Expenditures for maternal and child health programs are estimated at $269 million in 1969, $46 million more than in 1968. The increase will be used to reduce infant mortality, expand family planning programs, and strengthen efforts to detect and correct disabling childhood conditiiPns. SELECTED FEDERAL HEALTH CARE PROGRAMS [Fiscal years. Dollars in million•I 1960 actual Medicare (millions): Number of aged individuals ____________________ Covered by hospital insurance ________________ Using insurance during the year _____________ Covered by insurance for doctor bills __________ Using insurance during the year _____________ Expenditures (trust funds) ____________________ 1967 actual 1968 estimate 1969 estimate ------------------------------------------------------- 19.3 18.9 4.4 17.9 7.4 $3,396 19.7 19.2 4.5 18.3 7.5 $5,064 20.0 19.6 4.6 18.6 7.6 $5,785 Number of States participating__________________ _____ .., ____ Number of individuals served (millions) __________ ---------Federal expenditures ___________________________ 29 5.2 $1,173 43 7.3 $1,761 48 8.5 f2, 121 54 134 54 145 54 175 120 125 900 362 77 1,130 $54 385 90 1,680 $83 390 90 1,710 $99 394 91 ,. 772 $110 379 52 1,175 $50 463 53 1,612 $75 473 54 1,676 $89 478 54 1,724 $96 Medicaid: Maternity and infant care projects: Number of comprehensive centers _______________ Admissions to comprehensive centers (thousands)_ Family planning participants (thousands) ________ Indians (thousands) : Number eligible _______________________________ Admissions to hospitals _________________________ Outpatient visits to hospitals and field clinics _____ Expenditures __________________________________ Other PHS beneficiaries (thousands): Number eligible _______________________________ Admissions to hospitals ________________________ Outpatient visits to hospitals and field clinics _____ Expenditures _________________________________ ------------------------------------- Direct services.-Approximately 870,000 Indians, merchant seamen, and other beneficiaries are eligible for medical care directly through the Public Health Service. In 1969, expenditures of $206 million are estimated for these programs. Of this amount, $110 million will go https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 140 THE BUDGET FOR FISCAL YEAR 19 6 9 toward improving the health of American Indians, with special emphasis on preventive care, health education, and the construction of water and sanitation facilities. Prevention and control of health problems.-Of the $640 million in new obligational authority requested for the prevention and control of health problems in 1969, $413 million is for disease prevention and control. Funds are included to expand (1) assistance to States under the Partnership for Health program to attack their high priority disease problems, as well as to meet speciali~ed health needs through programs such as rat control and (2) experimentation and demonstration projects on early childhood development. Within the $148 million of new obligational authority recommended for 1969 for environmental control programs, $107 million is provided to implement the Air Quality Act of 1967. Primary emphasis will be given to research seeking economically feasible methods for control of major air pollutants such as sulfur oxide and those in auto exhausts. In addition, criteria will be issued recommending air quality standards for a number of major pollutants, and States will be assisted in setting enforceable emission standards in air quality control regions. Research will be expanded on the disposal or reutilization of trash, garbage, and other solid wastes. Continuing emphasis will be given to the safety and effectiveness of the Nation's drug supply, early warning of epidemics, and improved quality of clinical laboratory diagnostic services. Consumers will be further protected by legislation being proposed to assure wholesome fish and to control radiation exposure and medical devices. Labor and manpower.-Programs for the training and employment of the disadvantaged have received very high priority in the 1969 budget. A substantial expansion in funds for these programs is requested. Particular emphasis will be placed on cooperation with private industry in the training programs and on the concentration of manpower activities in areas of substantial unemployment. Labor.-The 1969 budget provides for a number of legislative proposals to improve the well-being of working Americans: • A comprehensive occupational health and safety program for employees involved in intrastate or interstate commerce. • Workmen's compensation benefits for uranium miners who develop lung cancer from radiation exposure. • Greater protection of employees' interests through amendment of the Welfare and Pension Plans Disclosure Act. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 141 In addition, legislation will be proposed to liberalize the trade adjustment assistance program, which authorizes aid to workers and businesses substantially affected by increased imports. Manpower.-In addition to the Labor Department programs included in the "Labor and manpower" category, various training and work experience opportunities and other manpower services are financed through other civilian agencies-notably the Office of Economic Opportunity; the Department of Health, Education, and Welfare; the Veterans Administration; and the Department of the Interior. Most of the funds for the manpower programs of these agencies are classified elsewhere in the budget. However, the major programs are discussed here to indicate the wide range of efforts being made to increase opportunities for all workers to contribute to and share in our economy and society. New obligational authority of $2.1 billion is recommended in 1969 for Federal manpower programs of the Department of Labor and the other agencies mentioned above. This represents an increase of $442 million over the estimate for 1968. In addition to providing increased opportunities for training and work experience, improvements are planned in the organization, administration, and delivery of the various manpower services. New steps will also be taken to improve coordination of manpower activities through better State and local planning supported by area manpower surveys. The benefits of the sustained growth of the American economy in recent years have not been fully shared by those who live in urban ghettos and rural backwaters. Many, due to inadequate education, lack of skills, poor health, discrimination, and the debilitating effect of their environment, are unable to participate successfully in the labor force without special assistance. The Federal manpower effort is aimed particularly at this group. Therefore, those receiving services under Federal manpower programs are typically poor and unemployed, members of a minority group, youths, older persons, inadequately educated, or handicapped. The total manpower effort may be categorized as: (1) structured training, (2) general work experience, and (3) general manpower services and program support. These categories of activities are shown in the following table: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 142 THE BUDGET FOR FISCAL YEAR 1969 MANPOWER PROGRAMS BY ACTIVITY (Fiscal yean. In million ■I New obligational authority Category and program 1967 1968 1969 actual estimate recom• mended Structured training: On-the-job. ____________________________________________ _ Institutional__ _____________________ . ____________________ _ Job Corps ______________________________________________ _ New Careers ___________________________________________ _ MDTA short-term training and support_ __________________ _ Indian manpower activities _______________________________ _ $116 238 209 36 43 17 $182 246 285 28 80 21 $404 Subtotal ___________________________________________ _ 659 842 1,153 Youth school and summer work ___________________________ _ Community work experience _____________________________ _ 207 302 149 226 209 212 Subtotal ___________________________________________ _ 509 375 422 310 295 36 83 25 General work experience: General manpower services and program support: Federal/State Employment Service!________________________ 278 299 Community Action Manpower support_____________________ 13 15 Support to Concentrated Employment Program_ _____________ 25 55 Special Impact Program____________________________________________ 20 Research, demonstration, and general support (Labor Department)________________________________________________ 39 39 State and local manpower program planning ____________________________________ _ Subtotal I __________________________________________ _ Total 1_____________________________________________ _ 331 15 82 30 43 11 355 428 512 1,523 1,645 2,087 Note.-Mo1t of these programs are not included in the .. Labor and manpower'" category in this function. I Includes trust fund outlays of $27S million in 1967, $297 million in 1968, and $328 million in 1969. Structured training.-About 55% of the recommended new obligational authority for manpower programs in 1969 will be used to provide formal skill training, both on the job and in classrooms. New obligational authority for structured training will increase to $1.2 billion in 1969, $311 million over 1968. The greatest expansion is in programs which are primarily for on-the-job training in private industry. Through the Manpower Development and Training Act (MDTA), the Work Incentive Program for welfare recipients, veterans pro- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 143 THE FEDERAL PROGRAM BY FUNCTION grams, and funds made available to the Department of Labor by the Office of Economic Opportunity, 281,000 individuals will be provided on-the-job training opportunities in 1969. An additional 13,000 persons will be provided opportunities for training and work experience leading to subprofessional employment through the New Careers program. Institutional training, the learning of job skills in a classroom setting, and basic education will be available to about 268,000 individuals through the MDTA, Opportunities Industrialization Centers, the Job Corps, and the Work Incentive Program. In addition, part-time skill upgrading and short-term employability training under the MDTA will be available to 63,000 individuals. About 14,000 Indians will be trained, relocated, or placed directly on jobs by the Bureau of Indian Affairs. General work experience.-Many individuals are unable to obtain the work experience which is the prerequisite to full participation in the labor force. In 1969, about 469,000 youths will be provided opportunities for work in the public sector during the school year or in the summer, so that they may obtain income necessary to continue their education. Another 121,000 youths and adults in both urban and rural areas, handicapped by age or local economic conditions, will have opportunities for meaningful work experience providing $ Billions - 2.5 Manpower Program Expenditures by Basic Activities 2.0 1.5 1.0 .5 1958 1959 1960 Fiscal Yeon https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 1962 1963 1964 ~965 1966 1967 1968 Estimate 144 THE BUDGET FOR FISCAL YEAR 1969 useful community services. The estimated 590,000 persons to be served in 1969 represents an increase of 155,000 over 1968. General manpower services and program support.-The FederalState Employment Service System is the supplier of basic manpower services and, with the local Community Action Agencies, provides the leadership in carrying out manpower programs at the local level. Special emphasis is being given to identifying and seeking out the disadvantaged and providing them with counseling, referral to training, and special placement efforts. Additional urban and rural Concentrated Employment Programs will be established, using funds from the programs mentioned above, to provide a more effective and concentrated delivery of manpower services in specific geographic areas with large numbers of disadvantaged persons. An estimated 70 new CEP's-35 of them rural-will bring the total number of CEP's in 1969 to 146, serving over 200,000 individuals. These CEP's will bring together under one program such diverse services as remedial education, special counseling, work experience, institutional and on-the-job training, job placement, day care for dependent children, and health services. Under the Economic Opportunity Act's Special Impact Authority, $30 million in new obligational authority is requested for 1969, an increase of $10 million over 1968. These funds will be used to provide incentives to private employers to hire and train the disadvantaged in projects which contribute to the economic development of communities and neighborhoods having large concentrations of low-income persons. About 53% of the new obligational authority requested for manpmrnr in 1969 is included in the amount budgeted for the Office of Economic Opportunity and about 38% is included in the amount budgeted for the Department of Labor. Through transfers of funds, however, the Department of Labor will administer about 78% of the total manpower effort. Major new emphasis is being ·given to improved coordination and planning in support of manpower services. In 1969, the Cooperative Area Manpower Planning System (CAMPS) will be strengthened to enhance coordinated planning for meeting manpower needs from the local community upward. Support is also provided for the collection of manpower data to serve as the basis of those plans. The following data indicate the numbers of persons receivmg a variety of services through Federal manpower programs: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 145 THE FEDERAL PROGRAM BY FUNCTION MANPOWER PROGRAMS, INDIVIDUALS SERVED (Fiscal years. In thousands) Category and program 1967 1968 1969 actual e1ti mate estimate Structured training: On-the-job______________________________________________ 125 Institutional.___________________________________________ 134 Job Corps_______________________________________________ 99 New careers __________________ --------------------------14 MDTA part-time and employability training _________________________ _ Indian manpower activities________________________________ 11 Subtotal ___________________________________________ _ 186 129 98 10 57 13 281 170 98 13 63 14 492 638 ---------1383 General work experience: Youth school and summer work ___________________________ _ Community work experience. ____________________________ _ 454 310 216 126 ----------1Subtotal ___________________________________________ _ 435 670 469 121 590 General manpower services and program support: Support to Concentrated Employment Program______________ 9 Special Impact Program ___________________________________________ _ Subtotal ___________________________________________ _ Total_ _____________________________________________ _ 34 10 50 15 9 44 65 1,062 970 1,292 ----- ----1- Economic opportunity programs.-In addition to the manpower activities financed through the Office of Economic Opportunity, the attack on poverty directed by OEO continues mainly through community action programs, including Head Start and Head Start Follow Through, and through health, legal, and other social services. In fiscal year 1969, outlays for all the programs of the Office of Economic Opportunity are estimated at $2.0 billion, an increase of $130 million over 1968. Recommended budget authority for 1969 will be nearly $2.2 billion, the full amount authorized by Congress, and $417 million more than the 1968 appropriation. Community action programs.-The 1969 budget provides over $1 billion of new obligational authority for community action programs, an increase of $154 million over 1968. This amount will provide for continuation of existing programs as well as for an increased emphasis on antipoverty efforts in rural areas. In addition, programs will be expanded for the aged and for nutrition, housing, and family planning. 800-000 0-68--10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 146 THE BUDGET . FOR FIS6AL YEAR 196 9 The capacity of local Community Action Agencies (CAA's) to plan, evaluate, and coordinate programs effectively in the local community will also be expanded. In 1969, OEO and the Departments of Labor; Health, Education, and Welfare; and Housing and Urban Development will continue to participate in a joint program to provide in 14 cities a coordinated service approach to meeting the problems of the poor. Multipurpose neighborhood centers will be administered in some cases by local neighborhood corporations and in others by neighborhood groups in conjunction with the local Community Action Agency. Services delivered through these centers will be financed by Fedeml, State, local, and private agencies. Project Head Start will provide full academic year pr eschool classes for 202,000 children and summer projects for 450,000 children. The 1969 budget also includes $50 million for the second year of the Head Start Follow Through program. These funds will provide for special services to 79,000 children in the primary grades so that they can build on the benefits of their earlier Head Start or other preschool Federal Aid to the Poor Cash Payments to the Poor S Billions 10 ,....-- - - - - - - - - - - - , OASDI Benefit Payments $Billions .- -----~------,,o Oth er Cosh Benefit Payments 6 4 0 0 Services to the Poor S Billions $Billions 10 10- - - - Educat ion, Training, and Health Al I Othe, Aids 8 - - 6 4 -4 2 0 1960 1963 1967 fiscal Years https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1968 1969 Estimate 1960 ■ 1963 I I 1967 I 1968 1969 Estimate ~ 2 0 THE FEDERAL PROGRAM BY FUNCTION 147 experience. Experiments will be undertaken with various approaches to the education of disadvantaged children. Through other community action activities, legal services will be provided in approximately 570,000 cases, Upward Bound will help 31,000 culturally deprived but talented youths prepare for college, and it is estimated that 50 health centers will be operating to provide services to the poor where they live. Migrants, VISTA, rural loans.-During 1969, $30 million will be requested for adult education, child day care, sanitation, and housing for many of the 351,000 migrant farm workers in the United States. In addition, VISTA (Volunteers in Service to America) will provide about 4,500 man-years of volunteer service in poverty areas. An estimated 10,000 rural families will receive loans to finance farm improvements or small nonfarm businesses. Total Federal assistance to the poor.-Since 1963, the number of poor in the Nation has decreased 6½ million. However, there remain about 29 million poor, too many in a country as rich as ours. In addition to antipoverty efforts under the Economic Opportunity Act, numerous Federal programs assist in attacking this problem. These programs include social security, public assistance, education, work and training activities, health services, regional economic development, housing, urban redevelopment and community facilities, school lunches, and various other food distribution activities. In fiscal year 1969, Federal outlays which aid persons below the poverty line (for example, a family of four with an annual income under $3,335) are estimated to total $27.7 billion. This represents an increase of $3.1 billion over fiscal year 1968 and $15.2 billion over 1963. Social insurance.-Social insurance programs help maintain the incomes of persons who are retired, disabled, dependent, or unemployed. These programs are funded, for the most part, by contributions or taxes paid by wage earners and their employers. The largest is social security; others include unemployment insurance, civil service retirement and disability programs, and the railroad retirement system. Expenditures from these funds will be $33.8 billion in 1969, an increase of $3.9 billion over 1968. The Social Security Amendments of 1967, represent a major step toward assuring a more adequate living standard for retired workers, their survivors, and dependents. Under the Amendments, payments to 24 million beneficiaries will be increased at least 13% and minimum benefits raised from $44 to $55 a month, effective February 1, 1968. Other major changes include: increased benefits for 690,000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 148 THE BUDGET FOR FISCAL YEAR 1969 noninsured persons over age 72, survivor benefits for 65,000 disabled widows and widowers over age 50, disability insurance benefits for 100,000 workers disabled before reaching age 31 with less than 20 quarters of coverage, and a more liberalized earnings test which will affect more than 760,000 persons. The cost of these improvements will be financed by an increase in the taxable wage base from $6,600 to $7,800 beginning January 1, 1968, and by a scheduled increase in the tax rate from 4.4% to 4.8% each, on both employers and employees, beginning January 1, 1969, including 0.6% for medical insurance. SOCIAL INSURANCE [ Fisca I years] Payments (millions) Number of beneficiaries ( thousands) Program 1967 1968 1969 1967 1968 1969 actual estimate estimate actual --- estimate estimate --·~- Social Security: Retired workers and their dependents __________________ Disabled workers and their dependents __________________ Survivors of deceased workers __ Disabled children of retired and deceased workers ___________ Benefits to noninsured persons aged 72 and over_ ______ 15,925 $13,723 $14,831 $16,854 2,468 6,076 1,861 4,825 2, 118 5,426 2,521 6,334 229 256 138 158 194 729 779 690 200 327 329 531 541 540 768 790 812 100 306 14 100 316 37 100 325 52 168 299 7 170 326 24 176 346 36 414 436 459 I, 193 1,299 1,457 167 , 2491 174 262 184 275 351 260 14,789 15,437 2,060 5,420 2,258 5,724 210 Railroad Retirement: Retired workers ~nd their dependents __________________ Disabled workers and their dependents ________________ Survivors of deceased workers __ Supplemental annuities ___ ! Civil Service: Retired workers and their dependents __________________ Disabled workers and their dependents ________________ 1 Survivors of deceased workers __ j I ! I -- s-• 382 · 283 i - 429 317 I The effect of this legislation is to increase expenditures of the old-age, survivors, and disability insurance trust fund from $21.7 billion in 1967 to $23.9 billion in 1968 and $27.4 billion in 1969. Receipts, primarily from payroll taxes, will increase from $25.7 billion in 1967 to $26.8 billion in 1968 and $30.8 billion in 1969. Legislation will be proposed to improve the unemployment insurance program. These improvements will include extension of coverage, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 149 more adequate regular benefits for unemployed workers, extended benefits during periods of high unemployment, and training and other services needed to increase the employability of claimants. Public assistance and other welfare services.-A major consolidation and realignment of Federal welfare, rehabilitation, and social service programs in the Department of Health, Education, and Welfare has been achieved with the establishment of the Social and Rehabilitation Service Administration. Responsibility for Federal grant programs covering public assistance, maternal and child health and welfare, vocational rehabilitation, mental retardation, programs for the aging, and other social welfare programs has been concentrated in this agency under the leadership of a single administrator. Public assistance.-The federally aided public assistance program, operating through State and local government agencies, helps needy families and individuals who are without other resources. In 1969, financial assistance and social services will be provided to a monthly average of 8.8 million indigent individuals-including aged, blind, and disabled persons, and the more than 1.5 million families with 4.6 million children who qualify for aid to dependent children. The number of old-age assistance recipients will continue to decline, primarily because of recently enacted benefit increases under the social security program. Increased numbers of recipients are, however, expected in the disabled and dependent children programs. New obligational authority of $3.1 billion is recommended in 1969 for Federal public assistance grants to provide cash assistance to our poorest citizens. When matched with State and local funds, these grants will provide a $5.3 billion program of financial assistance to recipients. Recently enacted Social Security amendments are intended to stimulate the States to reduce welfare caseloads by providing incentives to welfare recipients to seek employment. The amendments authorize a new work incentive and training program for adult members and older, out-of-school children of welfare families. State welfare agencies will be required to refer all appropriate individuals to the new work and training program, to be administered by the Department of Labor. State agencies will also be required to: • Assure adequate day care arrangements for children of welfare mothers participating in the work incentive and training program. • Provide family planning services on a voluntary basis in all appropriate cases. • Exempt a portion of income earned by working members of families and other individuals currently on the rolls when computing need for welfare payments. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 150 THE BUDGET FOR FISCAL YEAR 19 6 9 PUBLIC ASSISTANCE CASELOAD DATA [Fiscal years. Dollars in millions] Program 1967 actual 1968 estimate 1969 estimate --· Old age assistance: 2,073 2,054 2,017 $1,679 $1,107 $1,681 $1,128 $1,653 $1,098 84 83 81 $87 $48 $87 $49 $87 $48 590 635 675 $528 $332 $591 $371 $395 Children ____________________________ - - - - - - - - - - - - - - - - - Recipients: Children and adults _________________________ I, 139 3,558 4,714 1,306 4,077 5,400 1,466 4,574 6,059 Expenditures for payments: Total, Federal, State, and local_ _________________________ Federal share __________________________________________ $2,043 $1,140 $2,471 $1,404 $2,880 7,461 8,172 8,832 $4,337 $2,627 $4,830 $2,952 $5,258 $3,044 Average number of recipients (thousands) __________________ Expenditures for payments: Total, Federal, State, and locaL ________________________ Federal share __________________________________________ Aid to the blind: Average number of recipients (thousands) __________________ Expenditures for payments: Total, Federal, State, and locaL ________________________ Federal share __________________________________________ Aid to the permanently and totally disabled: Average number of recipients (thousands) __________________ Expenditures for payments: Total, Federal, State, and locaL _________________________ Federal share __________________________________________ $638 Aid to families with dependent children: Average number (thousands): Families _____________________________________________ - $1,503 Total: Average number of recipients (thousands) __________________ Expenditures for payments: Total, Federal, State, and local_ _________________________ Federal share __________________________________________ In addition, Federal matching payments will be limited after July 1, 1968, to the same percentage of children in the State who, because of the absence of a parent, were dependent on welfare on January 1, 1968. To carry out the new requirements and to continue to provide social services to all public assistance recipients, new obligational authority of $730 million is requested, of which $135 million will be used in 1969 for the Work Incentive Program. This represents an increase of $223 million over 1968. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 151 In spite of the recent changes, much remains to be done to create a more just, equitable, and socially constructive welfare system. Accordingly, a Presidential Commission on Income Maintenance Programs, comprised of outstanding leaders of industry, commerce, government, and education, has been appointed to review all aspects of existing welfare and related programs. Vocational rehabilitation.-Rehabilitation of the disabled under the Federal-State vocational rehabilitation program yields a high social and economic return on public investment. Recent exploratory studies indicate that as a result of vocational rehabilitation services, the added lifetime earnings of persons rehabilitated are many times the amounts spent on rehabilitating them, and the increase in the taxes they pay is several times the rehabilitation cost. In 1969 more than 750,000 disabled individuals will receive services and about 230,000 will be restored to productive employment, an increase of about 15% over 1968. Basic grants for rehabilitation services and facilities are expected to increase from $301 million in 1968 to $367 million in 1969. Including State matching funds, the total program will come to $482 million. A more concerted effort will be made to rehabilitate the more difficult cases-particularly the disabled who are now supported on public assistance. Services to the aged.-The budget for 1969 includes the full authorization for the project grant programs of the Administration on Aging to provide the stimulus to States and localities for the development of innovative service programs for all aged citizens. Legislation will be proposed to strengthen State agencies and commissions established under the Older Americans Act. Through the mechanism of continuous comprehensive statewide planning, such agencies and commissions will be better able to provide the necessary leadership and assistance to their communities in the development and operation of meaningful service programs for the elderly. Outlays for all of the Federal programs which offer benefits and services to the 19.7 million persons over age 65 will reach $32.9 billion in 1969. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 152 THE BUDGET FOR FISCAL YEAR 1969 Nutrition and other programs.-The budget provides for pending legislation to authorize support for the prevention, treatment, and control of juvenile delinquency. Expenditures for the food stamp program of the Department of Agriculture are estimated to increase by $60 million to $238 million in 1969. The estimate includes $15 million under proposed legislation to remove the limitation on the appropriation for this program. By the end of fiscal year 1969, approximately 3 million low income people will be improving their diets through the food stamp program. Currently, about one out of every 10 lunches served under the regular school lunch program is served free or at a reduced price to needy children. A major part -of the estimated increase of $26 million in the expenditures for the school lunch program in 1969 will be used to reach more of these needy children through: (1) free or reducedprice lunches, (2) increased purchases of lunchroom equipment where facilities are inadequate, (3) expansion of the school breakfast program, and (4) increased commodity procurement. EDUCATION Education is the vital process by which we develop the skills and abilities of our people, open opportunities for a wider cultural life, and help ensure the social and economic progress of the Nation in the future. The Federal role in education has grown rapidly in the past few years. Outlays in 1969 are estimated at $4.7 billion, an increase of 200% over 1965, the year in which landmark laws were enacted to assist elementary, secondary, and higher education and to establish the National Foundation on the Arts and Humanities. The central concern of the Federal Government in recent years has been to promote improved education for the disadvantaged, who for too long had been tragically neglected. The 1969 budget continues our commitment to overcoming barriers of race, ethnic origin, place of residence, income, or mental and physical handicaps. Increases are included for those programs which are directed towards improving the quality of education, expanding the supply of qualified teachers, and for educating the handicapped and preventing dropouts. Lesser priority has been given to activities, such as the purchase of equipment and the construction of buildings, which can be temporarily deferred in the context of a stringent budget. The budget also provides for action to simplify and improve administration of education programs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 153 THE FEDERAL PROGRAM BY FUNCTION EDUCATION (Fiscal year■, In million,) Program or agency Expenditures and net lending 1967 actual 1968 1969 estimate estimate Recommended NOA and LA for 1969 I --Eirpenditarea: Elementary and secondary education: Children from low income families ___________________ $1,057 Other education of the disadvantaged ________________ 67 Special school projects _____________________________ 75 School books, equipment, counseling, and strengthening State education agencies __________________________ Assistance to schools in federally impacted areas ______ Other (teacher training) ___________________________ $1,070 70 155 $1,073 109 169 $1,200 154 219 213 447 -------- 237 372 26 155 416 9 121 410 421 198 92 -------- 597 308 153 673 213 179 Higher education: Aid for undergraduate and graduate students _________ Academic facility grants ____________________________ Other aids to higher education ______________________ Proposed legislation ________________________________ -------- -------- --------558 86 182 23 Science education and basic research: National Science Foundation: Basic research and specialized research facilities _____ Grants for institutional science programs ___________ Science education _______________________________ Other science activities ___________________________ 209 49 118 39 226 72 115 43 230 78 120 52 244 66 131 59 Other aids to education: Training of education manpower_ ___________________ 41 13 57 216 250 271 247 7 99 141 153 98 23 257 15 146 149 155 100 24 61 20 -16 66 20 -16 3,602 4,157 4,364 ------ 4,585 Vocational education: Present program _________________________ -- _____ Proposed legislation _____________________________ Educational research and development_ ______________ Grants for libraries and community services ___________ Indian education services ___________________________ Library of Congress and Smithsonian Institution 2_____ National Foundation on the Arts and Humanities 2 ___ Other: Present programs ________________________________ -------- -------57 57 112 62 10 76 100 116 83 15 37 55 Proposed legislation for public broadcasting _________ -------- -------Applicable receipts from the public (-) ________________ -15 -II Subtotal, expenditures ___________________________ < Net Lending: * 1 334 1 686 335 445 384 ---- - - TotaL ____________________ ------ --------------- 4,047 4,699 4,541 687 Elementary and secondary education _________________ Higher education ____________________________________ Subtotal, net lending ____________________________ • Le11 than $500 thousand. 1 ------2 447 383 5,272 Compare, with new obligational authority (NOA) and lending authority (LA) for 1967 and 1968, aa followa: NOA: 1967, $4,430 million: 1968, $4,673 million. LA: 1967, $901 million: 1968, $2,002 million. • Includes both Federal funds and tru,t funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 154 THE BUDGET FOR FISCAL YEAR 1969 CREDIT PROGRAMS-EDUCATION 1 ( Fiscal yean. In million1l 1967 1968 1969 actual eltimate eatimate Program or agency Higher education: Academic facility loans: Disbursements ____________________________ _ Repayments ______________________________ _ $84 $69 4 6 $84 9 80 63 75 (.300) 391 (200) (.300) 27 350 34 295 40 Net lending __________________________ _ 364 316 255 Other education credit programs: Disbursements ______________________________ _ Repayments _______________________________ . _ 5 3 6 1 2 Net lending ____________________________ _ 2 5 4 Total, net lending_______________________ _ 445 384 335 Net lending ___________________________ . _ College housing loans: Commitments ____________________________ _ Disbursements ___________________________ _ Repayments ______________________________ _ I 6 Excluding credit program• in the espenditure account. Elementary and secondary education.-N ew obligational authority of $2.1 billion is requested for elementary and secondary education for 1969, about the same as for 1968. There are, however, significant changes within this total, as increases, largely for education of the handicapped and for new projects to prevent dropouts, are offset by decreases in supplementary grants for school equipment and books. Over one-half of the total, $1.2 billion, will be for grants under Title I of the Elementary and Secondary Education Act of 1965, to improve education in schools serving large numbers of students from low-income families. Federal grants are used for projects, designed by local districts and approved by States, covering a wide range of activities such as changes in curriculum and organization, increased parental involvement, and remedial and health services to help these children reach higher levels of academic achievement. For schooling of young children, additional Federal assistance is provided by the preschool Head Start program and Follow Through activities in the early elementary school grades, financed under the Office of Economic Opportunity and included in the Health, Labor, and Welfare function. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 155 THE FEDERAL PROGRAM BY FUNCTION Appropriations of $154 million, double the 1968 level, are requested in 1969 for other programs for the disadvantaged, including programs for the handicapped, the Teacher Corps, and non-English-speaking students. This increase will be largely for (1) new regional centers staffed by specialists in diagnostic and remedial services and grants to States to support school and preschool classes for the mentally retarded and physically handicapped; (2) continuation of the Teacher Corps, under which new college graduates and experienced teachers work as teams in schools serving students from low-income families; and (3) a new program of bilingual education for children whose native language is not English, as authorized in the Elementary and Secondary Education Act Amendments of 1967. New obligational authority of $189 million is recommended for grants to school districts for new services to supplement the regular curriculum, or to improve planning and administration. New obligational authority of $30 million will support local school projects aimed at preventing dropouts under new authority included in the amendments of 1967. Estimates of communities and children reached by these Federal elementary and secondary education programs are as follows: ELEMENTARY AND SECONDARY EDUCATION PROGRAMS [Fiscal years. Dollars in million1J Program 1966 actual 1967 1968 1969 actual eatimate estimate Education of children from low income families: Obligations __________________________________ _ $1,053 $959 Number of districts aided _____________________ _ 17,481 18,694 Number of children participating (millions) _____ _ 7.0 9.0 Preschool and school classes for the handicapped: Obligations ______________________________________________________ _ Number of children participating ___________________________________ _ Supplementary services: Obligations __________________________________ _ $162 $46 Number of districts aided _____________________ _ 1,606 707 $1. 191 19,940 $1,200 9.5 19,940 9.5 $15 23,750 $32 53,300 $188 1,175 $189 1,075 Special projects to prevent dropouts: Obligations ________________________________________________________________ _ Number of children participating ________________ _____________________________ _ $30 46,000 New obligational authority of $86 million, a reduction of $116 million from 1968, is estimated in 1969 for purchase of schoolbooks and equipment and for provision of guidance and counseling services under authorizations in the Elementary and Secondary Education and National Defense Education Acts. These grants supplement funds spent by schools for similar purposes through Federal grants for education of children from low-income families, for supplementary school services, for impacted areas, and for vocational education. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 156 THE BUDGET FOR FISCAL YEAR 19 6 9 Education - Program Trends $ Billions Millions - 2.5 54 - Budget Outlays Student Aid Programs 2.0 3- 1.5 2 - - 1.0 1- .5 I I $ Millions 200 - Thousands -150 Educational Retearch and Development Teacher Training - 125 150 - 100 - 50 25 0 1958 60 62 Fiscal Years 64 66 t...i..L....i.....;.i.;.....i.,...:;;.i........1....1......;J....;;J....;;.i...;..1..o 60 62 64 66 68 69 Estimate 68 69 1958 Estimate One of the most serious difficulties experienced by school officials in making efficient use of Federal funds has been that the timing of the Federal appropriation process causes grants to be made well after the start of the school year. In order to alleviate this problem, the budget proposes that 1969 grants for education of the disadvantaged be appropriated by the spring of 1968 (as a part of the 1968 supplemental appropriation bill) and that 1970 appropriations be included in the regular 1969 appropriation bill, making them available some 9 or 10 months before the academic year begins. This procedure does nothing to alter the total Federal budget for any fiscal year, but merely changes the date on which schools can be notified as to the grant they can expect to receive. In addition, the budget requests $14 million in new obligational authority for evaluation of federally supported elementary and secondary programs and grants to States for determining priorities and making careful plans for use of Federal grants to be spent in the subsequent year. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 157 THE FEDERAL PROGRAM BY FUNCTION Expenditures of $416 million are included in the 1969 budget for school operation and construction in school districts with large numbers of Federal employees-the so-called federally impacted areas. Legislation will be proposed to begin in fiscal year 1970 to bring these expenditures gradually to a level more consistent with the burdens imposed on local schools by virtue of Federal activities but assuring that no individual school district will undergo a reduction in Federal grants from impacted areas and Title I combined. Higher education.- Federal grants for higher education are primarily for financial aid to college students and for construction of classroom, library, laboratory, and housing facilities. Through Oflice of Education and other Federal programs, 2.1 million grants, loans, insured loans, and work-study opportunities will be provided, including benefits under the GI bill. The insured loan program will help 750,000 middle and upper income students in 1969; this program will be stimulated through legislation designed to increase its attractiveness to bankers and other lenders. In addition, the Veterans Administration will assist 469,000 students in higher education. Legislation will be proposed to give colleges and universities more flexibility in tailoring a combination of grant, loan, and work-study assistance for the individual student. New emphasis will be placed, in part through proposed new legislation, on identifying and encouraging promising high school students in financial need while they are still in high school and providing counseling and tutoring after they reach college. The Upward Bound program of the Office of Economic Opportunity, covered under Health, Labor, and Welfare, will also contribute to this effort by providing intensive special summer programs at colleges and universities for disadvantaged high school students who show potential for college. AID FOR UNDERGRADUATE COLLEGE STUDENTS [Fiscal years. Dollars in millions} Program Office of Education: Aid provided or guaranteed_-----------------------------Number of grants and loans (thousands) : Educational opportunity grants __________________________ National Defense Education Act loans ____________________ Work-study ___________________________________________ Insured private loans ___________________________________ 1967 actual 1968 estimate 1969 estimate $670 $931 $1. 130 227 394 220 330 276 405 212 560 284 408 227 750 Veterans Administration: 1 Aid provided or guaranteed _______________________________ Number of grants (thousands) ____________________________ $255 377 $298 422 $340 469 Total number of student grants and loans (thousands) 2_________ 1,5481 1,876 2, 139 1 2 Funds are included under Veterans Benefits and Services. Includes some aid to graduate students. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 158 THE BUDGET FOR FISCAL YEAR 196 9 Outlays for construction of college and university classrooms, laboratories, and libraries are estimated to decline to $288 million, compared with $371 million in 1968. This reduction is consistent with the budget policy of holding down construction activity and according higher priority to increases in programs more directly benefiting students and institutional services. With a 3% interest rate, the college housing loan program of the Department of Housing and Urban Development continues to be attractive to colleges which could obtain financing in the private market at reasonable interest rates. Legislation, now pending in the Congress, would permit adjustment of the present statutory interest rate to more reasonable levels, thus freeing Federal resources for use in areas where private financing is not available. New commitments of $300 million are expected in 1969, an increase of $100 million over the level estimated for 1968. The 1969 program level will provide financing for the construction of living spaces for 50,000 students. The budget recommends $30 million in appropriations for 1969, an increase of $14 million over 1968; to strengthen graduate and undergraduate programs, through which American students learn more about foreign nations and their cultures. Expenditures for other aids to higher education, including funds for land-grant institutions, teaching equipment, and assistance to smaller colleges with severely limited resources, are estimated at $179 million in 1969. Legislation will be proposed to promote sharing of resources among colleges and universities, including TV, computers, and libraries. Science education and basic research.-Expenditures for the National Science Foundation's broad range of science education and research programs are estimated to rise from $456 million in 1968 to $480 million in 1969. A portion of this increase will be for basic research, mainly in universities, emphasizing fundamental studies in fields of growing national concern, such as oceanography, and the environmental and social sciences. Most of the increase in expenditures will assist colleges and universities to improve further the quality of their science training and research activities. In addition, there will be increased support for efforts to bring new approaches to teaching high school science and mathematics to students not presently benefiting from recent advances in curriculum. Included in the increase are expenditures for a program, initiated in 1968, to explore and evaluate further the potential of computers in improving the educational process, particularly at the undergraduate level. Other aids to education.-New obligational authority recommended for other education programs totals $1.1 billion for 1969, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 159 THE FEDE,RAL PROGRAM BY FUNCTION compared with $776 million for 1968. The request includes increases in Federal assistance for training of manpower for the education professions, vocational education, educational research, public broadcasting, and arts and humanities. Legislation enacted in 1967 provides broad and flexible authority to improve training for the education professions at all school levels. New obligational authority of $216 million is recommended for this purpose for 1969, an increase of $54 million over 1968. These funds will support such activities as institutes, fellowships, seminars and conferences, grants to States for recruitment and training of teacher aides and new personnel brought into education from other fields, and grants to improve graduate level instruction in colleges of education. The National Science Foundation also supports school and college teacher education, primarily through short-term institutes. TEACHER TRAINING PROGRAMS [Fiscal years. Dollars in millions) Program Office of Education: Obligationa ________ - _- __________________________________ _ Number of teachers trained ______________________________ _ Elementary and secondary _____________________________ _ Teachers Corps _______________________________________ _ National Defense Education Act fellowships for preparing college teachers _____________________________________ _ Other college teacher training ___________________________ _ 1967 1968 1969 actual estimate estimate $193 (63,918) 45,036 2,090 14,792 2,000 $209 $291 (63,539) (89,584) 43,482 62,628 2,429 3,983 15,328 2,300 15,328 7,645 National Science Foundation: Obligations ____________________________________ - ____ - - _- _ Number of teachers trained ______________________________ _ Elementary and secondary _____________________________ _ College ______________________________________________ _ $38 (37,978) 33,837 4,141 $39 $40 (36,676) (36,902) 32,776 32,402 3,900 4,500 Total teachers trained________________________________ 101,896 100,215 126,486 Note.-lncludes full-year and short-term programs. Legislation is proposed which will consolidate into a comprehensive act the various vocational education authorities and improve the administration and effectiveness of the existing programs. The legislation will also authorize support for projects for experimentation with different methods of providing occupational education and orientation, particularly for disadvantaged and other students not planning to go to college. This program will be oriented toward those occupations most in demand in our changing economy. New obligational authority for educational research, experimentation, and demonstrations will total $146 million in 1969, an increase of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 160 THE BUDGET FOR FISCAL YEAR 19 6 9 more than 55% over 1968. This expansion will include (1) development of a model school program in the District of Columbia, (2) several large-scale experiments in education of preschool and school age ghetto children, and (3) studies and evaluations of current Federal education programs. The budget provides grants totaling $33 million in 1969, an increase of $29 million over 1968, for noncommercial television and radio broadcasting. These grants, in part dependent on new legislation to be proposed, include support for (1) construction of transmission facilities and (2) activities of the Corporation for Public Broadcasting, a nonFederal agency authorized in the last session of the Congress. The legislation relating to the Corporation will authorize advance appropriations for the Corporation's activities. Expenditures by the National Foundation on the Arts and the Humanities are estimated at $23 million in 1969, a major increase over the $15 million level of 1968. With this increase the Foundation will begin to move into a stronger position in supporting arts and humanities programs in educational institutions, encouraging artists and scholars, and bringing the arts and the humanities into the lives of our people. VETERANS BENEFITS AND SERVICES The 1969 budget reflects increasing attention to the needs of newly discharged veterans. Over 800,000 servicemen are currently being discharged from military service each year compared to about 500,000 a year just prior to the Vietnam war. Readjustment benefits for veterans in 1969 will amount to over $1 billion. The largest portion of Federal outlays for veterans benefits continues to be devoted to the payment of compensation and pensions, primarily to veterans of earlier wars. These payments are estimated at $4.6 billion in 1969. Hospital and medical care benefits comprise the third major element of veterans programs, with expenditures expected to amount to $1.5 billion in 1969. For these and other efforts in behalf of veterans, Federal outlays will increase by $174 million this year to a level of $7 .3 billion. The major increases are for readjustment benefits to Vietnam veterans and for the medical service programs. All veterans programs are currently receiving an intensive evaluation to insure that they are appropriate to the needs of today's veterans. A commission established for this puTpose is expected to report to the Administrator of Veterans Affairs in the spring of 1968. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 161 THE FEDERAL PROGRAM BY FUNCTION In the meantime, legislation should be enacted to reshape some of the traditional veterans programs where need for improvement is already apparent, including: • Closer correlation of pension payment formulas to need, as measured by the veteran's other sources of income. • Elimination of certain clearly duplicative, inequitable, or outmoded benefits. VETERANS BENEFITS AND SERVICES (Fiscal years. In millions] Expenditures and net lending Program or agency Recommended NOA and LA for 1969 1 1967 1968 1969 actual estimate estimate $2,435 2,063 $2,461 2, IOI $2,461 280 5 -3 502 -34 12 604 3 3 604 131 14 Medical care and hospital services __________________ _ 1,272 Construction of hospital and nursing home facilities ___ _ 60 Medical administration, research, and other_ _________ _ 58 1,336 60 61 1,413 69 65 1,420 37 64 528 190 147 602 199 124 -18 848 199 120 9 Expenditures: Service-connected compensation _____________________ _ $2,310 Non-service-connected pensions ___________ ___________ _ I, 893 Readjustment benefits: Education and training ____________________________ _ Housing programs ________________________________ _ Other ______________ ----- -- _____ - --- --- -- --------- 2, IOI Hospital and medical care: Other veterans benefits and services: Life insurance benefits 2 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____ Veterans Administration general operating expenses____ Other 2 ___________________________________________ 702 176 120 Proposed legislation _________________________________ _______________ _ lnterfund and intragovernmental transactions(-)______ Applicable receipts from the public ( - ) _____ ___ ________ -6 -502 -5 -5 -5 -497 -489 -489 ----------1---Subtotal, expenditures___________________________ 6,366 6,798 7, 131 7,515 ------===,!==== Net Lending: Readjustment benefits: Direct housing loans ______________________________ _ Housing loan guarantee program and other 2 _________ _ Other veterans benefits and services 2 ________________ _ 53 260 219 66 246 58 82 223 -94 115 281 -94 ---------·!---- Subtotal. net lending ___________________________ _ 532 370 211 302 - - - - - - - - - === Total__________________________________________ ---- 6,898 7, 168 7,342 7,817 -------------------------------- Compares with new obligational authority (NOA) and lending authority (LA) for 1967 and 1968, as follows: NOA: 1967. $6,369 million; 1968, $7,305 million. LA: 1967, $590 million; 1968, $555 million. ' Includes both Federal funds and trust funds. ! 300--000 ()..-,68--11 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 162 THE BUDGET FOR FISCAL YEAR 1969 Service-connected compensation.-Veterans who incurred or aggravated a disease or an injury in military service are awarded monthly compensation payments which reflect the degree of disability and the average impairment of earning capacity involved. Survivors of veterans whose death is directly attributable to military service are also awarded monthly payments in recognition of the economic hardship imposed on the family. The number of compensation beneficiaries with disabilities incurred in the Vietnam period continues to rise by more than 22,000 a year. On the other hand, the number of those on the rolls from prior conflicts is declining by about 18,000 annually. The Veterans Administration is undertaking a comprehensive survey to determine whether compensation payments are appropriate to specific disabilities. The overall number of beneficiaries and the range of payments under this program is illustrated by the following table: SERVICE-CONNECTED COMPENSATION (Fiscal years) Program indicator 1967 1968 1969 actual estimate estimate Veterans: Disability 30% or less: Average number of beneficiaries (thousands) ______________ Total payments (millions) ______________________________ Average annual payment_ _______________________________ Disability 40%-100%: Average number of beneficiaries (thousands) ______________ Total payments (millions) ______________________________ Average annual payment_ ______________________________ Survivors: Average number of beneficiaries (thousands) ________________ Total payments (millions) ______________________ --· _______ Average annual payment_ _________________________________ 1,436 $591 $411 1,437 $594 $413 1,435 $596 $415 560 $1.327 $2,370 569 $1,345 $2,364 575 $1,356 $2,358 364 $497 $1.365 366 $504 $1,377 366 $509 $1.390 Non-service-connected pens(ons.-Disabled veterans and other veterans in financial need may qualify for special pension payments. Veterans' widows and children who can demonstrate need may also be eligible for pensions. Increased expenditures estimated for pensions in 1969 partly reflect recently enacted legislation granting pensioners cost-of-living increases averaging 5.4%. Moreover, as a result of studies initiated under the planning-programing-budgeting system, legislation is pending before the Congress which would correlate pension payments more closely to the individual's needs and assure that as income from retirement and other sources increase, pension https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 163 THE FEDERAL PROGRAM BY FUNCTION payments are not disproportionately reduced. The budget assumes enactment of legislation along these lines, which would increase total pension outlays by $61 million in 1969. Readjustment benefits.-The period immediately following military discharge is a critical juncture in the life of a veteran. The opportunities available to him at that time can decide his future civilian career. An increasing amount of effort is being made by the Government to diversify and enhance educational and training opportunities through the provisions of the GI bill and such programs as the Defense Department's "Project Transition," which offers counseling and civilian job-training opportunities to servicemen in the closing months of military service. A number of other possible career development programs in or after service are being explored for early adoption, and appropriate legislation will be proposed to the Congress. The projected costs and average monthly number of participants engaged in Veterans Administration readjustment benefit programs are summarized in the following table. The data reflect improved benefits enacted in 1967, including special provision for educationally disadvantaged veterans, commercial flight training, and on-the-job training. Average payments are rising sharply in 1968 as a result of the increased cash benefits authorized, but are expected to decline slightly in 1969 because a greater number of part-time students is anticipated. EDUCATION AND TRAINING OF POST-KOREA VETERANS [Fiscal years) Program indicator 1967 1968 1969 actual estimate estimate Higher education: Average number of trainees (thousands) ___________________ _ Payments (millions) ____________________________________ _ Average annual payment_ ________________________________ _ 139 $216 200 $1,558 $375 $1,875 53 $36 $675 $95 $815 233 $436 $1,870 Below college level: Average number of trainees (thousands) ___________________ _ Payments (millions) ____________________________________ _ Average annual payment_ ________________________________ _ 117 170 $137 $810 In addition to training benefits, the Veterans Administration assists eligible veterans to obtain housing credit by guaranteeing privately financed mortgages and by making direct housing loans to veterans in rural areas or small communities where private credit is not gen- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 164 THE BUDGET FOR FISCAL YEAR 196 9 erally available. Activity in these programs is expected to increase moderately in 1969, with an anticipated expansion in homebuilding above current levels, and a growth in demand for loans from postKorea veterans. The number of guaranteed loans closed is expected to increase from ~27,000 in 1968 to 242,000 in 1969, while direct loans will increase from 12,300 to 14,000. Net lending for the loan guarantee program will increase from $246 million in 1968 to $281 million in 1969, resulting from increased loans to finance the purchase of properties repossessed by VA and sold to the public. Net lending for the direct loan program will also increase, from $66 million in 1968 to $82 million in 1969, largely reflecting the anticipated increase in new loan activity. CREDIT PROGRAMS-VETERANS BENEFITS AND SERVICES [Fiscal years. In millions) Program Readjustment benefits: Direct housing loans: Approvals ___________________________________________ _ 1967 1968 1969 actual estimate estimate ($157) 151 -98 ($166) 165 -99 Net lending ________________________________________ _ 53 66 82 Housing loan guarantee program: I Disbursements ________________________________________ _ Repayments __________________________________________ _ 372 -154 373 -126 412 -131 Net lending ________________________________________ _ 217 246 281 Other veterans benefits and services: Insurance policy loans: 1 Disbursements ________________________________________ _ Repayments __________________________________________ _ 146 -85 155 -97 165 -IOI Net lending ________________________________________ _ 61 58 64 Total, net lending ___________________________________ _ 532 370 211 Disbursements _______________________________________ _ Repayments _________________________________________ _ I ($180) 189 -l07 Exel udea transactions in o bligationa of Government-sponsored enterprises in the following amounts: Housing loan guarantee program______________________________ Other veterans benefits and services___________________________ /967 43 158 /968 /969 -58 -158 Hospital and medical care.-Expenditures for health services to veterans are estimated at $1.5 billion in 1969. This amountcovering medical services, administration, medical research, and construction of new facilities-is $89 million higher than in 1968. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 165 THE FEDERAL PROGRAM BY FUNCTION Veterans Benefits and Services - Program Trends $ Billions -80 Millions 2.5- Insurance in force 1.0Amount .50 ____.__.........._.._.....________...__, ,_.......i.........................__...._.__..............1...0 Thousands Thousands 600- -700 Education and Training Hospital Care -500 200- -400 0 .................._.._.__..._..i.._,_..................---1 1958 6l) Fiscal Years 62 64 66 68 69 1958 Estimate 60 62 64 66 Services, research, and administration.-The Veterans Administration provides medical care to veterans in over 200 VA hospitals and clinics across the country. By law, all veterans with service-connected disabilities are assured of such care. To the extent that available facilities and staff are not required for these veterans, hospital care is provided for veterans with non-service-connected disabilities who are unable to pay for care in other hospitals. The budget includes an estimated increase of $77 million in expenditures in 1969 to enable the Veterans Administration to continue to provide quality medical care for veterans. About two-thirds of this increase will be used for improvements started in 1968 and the other one-third will be used for additional new specialized treatment facilities in hospitals, improved nursing staffs, and expanded education and training programs for medical personnel. The Veterans Administration is restraining cost escalation in its hospitals by improving techniques of care which reduce the average https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 166 THE BUDGET FOR FISCAL YEAR 196 9 time the patient must remain in the hospital. Although per diem hospital costs are estimated to rise over 8% between 1968 and 1969, the total cost per patient treated. will increase by approximately 5%. In part, the improved turnover also reflects increasing use of nursing homes, where average occupancy will rise from 8,450 patients in 1968 to 10,200 in 1969. FUNDS, WORKLOADS, AND UNIT COSTS OF VA HOSPITAL SERVICES (Fiscal years] General hospitals 1967 actual Costs (millions) ____________ Average number of operating beds (thousands) _____ Average daily patient load (thousands) _____________ 1968 1969 esti- estimate mate Psychiatric hospitals Percent 1967 change, 1969 over actual 1968 1968 1969 estimate estimate Percent change, 1969 over 1968 - -- -- - --- - -- - --3.4 $698 $744 $791 6.3 $332 $349 $361 60.6 60.5 59.5 -1.6 54.6 52.2 50.1 -4.0 53.3 51.8 50.9 -1.7 50.1 47.0 45.0 -4.3 1.6 132.8 129.0 127.0 -1.6 -3.3 138 133 129 8.5 $18.23 $20.38 $22.09 4.7 $2,500 $2,705 $2,843 -3.0 8.4 5.1 Number of patients treated (thousands) _____________ 617.6 630.0 640.0 Estimated length of stay (days) _________ - - - - - - - - - 31% 30 29 Average cost per day of care_ $36.02 $39.37 $42.72 Total cost per patient treated_ $1,130 $1,181 $1,236 A record number of 856,000 veterans will be treated as patients in · Veterans Administration and contract facilities in 1969, an increase of 5,000 over 1968. In 1969 an average of 128,000 veterans will be receiving care daily in VA, contract, or State hospitals, domiciliaries, and nursing homes, of whom 113,000 will be in VA facilities. An estimated· 5.6 million outpatient visits will be made to VA clinics and another 1.1 million visits to private physicians and dentists at Federal expense. Construction of hospital and nursing home .facilities.-The 1969 budget provides for continued upgrading of VA hospital facilities. Some $103 million will be obligated in 1969 to advance this program, for which over $500 million has been appropriated since 1961. An estimated $66 million will be spent in 1969 for construction of VA hospitals and nursing homes. In addition, $4 million of new obligational authority is requested for the program authorized in 1965 for grants to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 167 THE FEDERAL PROGRAM BY FUNCTION assi~t the States to build nursing home facilities in conjunction with their soldiers' homes. As part of the Government-wide effort to hold down Federal construction activity, some construction starts on new hospitals, originally scheduled for 1968, have been postponed. In 1969, construction will get underway on new hospitals in San Antonio, Tex.; San Diego, Calif.; and Tampa, Fla. In addition, new hospitals in San Juan, P.R., and Long Beach, Calif., will be activated in 1969, and staffing at the new hospitals in Miami and Gainesville, Fla., will approach the planned level'. Life insurance.-The Veterans Administration operates five insurance programs for veterans of prior conflicts, the largest of which are the National Service Life Insurance and U.S. Government Life Insurance programs financed from trust funds. The VA also administers the Servicemen's Group Life Insurance program which is funded under the Department of Defense. Through this program, enacted in 1966, every man on active duty can obtain $10,000 of insurance, covering normal risks as well as the unique hazards associated with military service. The insurance is jointly underwritten by the Government and some 569 insurance companies. Under this arrangement, the Government pays directly for the extra-hazard cost of the insurance by meeting all death claims in excess of normal mortality rates. Veterans are entitled to continue their coverage with the private companies after returning to civilian life. Legislation is now pending to liberalize the coverage available under this program. The number of insurance policies and the dollar value of the various funds are indicated below: INSURANCE (Fiscal years. Dollars in million,) Description 1967 actual 1968 estimate 1969 estimate Veterans life insurance trust funds: Number of policies (thousands) _________________________ Insurance in force _____________________________________ 4,919 $31,783 4,850 $31,353 4,745 $30,693 Veterans life insurance revolving funds: Number of policies (thousands) _________________________ Insurance in force _____________________________________ 901 $7,540 893 $7,482 878 $7,361 Servicemen's group life insurance: 1 Number of policies (thousands) _________________________ Insurance in force _____________________________________ 3,600 $36,000 3,600 $36,000 3,600 $36,000 I Funded under the Department of Defense. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 168 THE BUDGET FOR FISCAL YEAR 19 6 9 INTEREST Expenditures for interest will be $987 million higher in 1968 than in 1967. In 1969 a further substantial increase of $865 million is expected. INTEREST [Fiscal years. In millions) Recommended new obligational E:r.penditurea Program or agency 1967 1969 estimate authority $14,350 $15,200 134 137 $15,200 13 12 12 13,524 14,497 15,349 15,349 From other Government accounts ________________ -300 -676 -290 -672 -296 -653 -296 -653 TotaL ______________________________________ 12,548 13,535 14,400 14,400 actual ExpenJ.itare,: Interest on public debt ____________________________ $13,391 Interest on refunds of receipts ______________________ 120 Interest on uninvested funds _______________________ 13 Subtotal_ ____________________________________ Interested collected by the Treasury ( - ) : From the public ________________________________ 1968 estimate for 1969 137 The estimated rise in expenditures in both years results b9th from increases in the level of the Federal debt and from rising interest rates. The budget estimates assume no further increases in interest rates, but since they have risen sharply in recent months, refinancing of maturing obligations at the higher levels will require increased interest expenditures. About $950 million of the estimated expenditures for interest in b.oth 1968 and 1969 will be offset by collections of interest by the Treasury Department. These collections represent mainly interest on loans made to other Federal departments and agencies to finance their lending and other business-type operations. They also include smaller amounts of interest collected directly by the Treasury Department from the public, including foreign governments, on a limited number of loans not operating through revolving funds. As recommended by the Commission on Budget Concepts, the gross Federal debt is now defined to include not only the direct obligations of the Treasury Department, traditionally ref erred to as the public debt, but also all securities issued by Federal agencies, including certificates of participation in assets of Federal agencies issued by the Export-Import Bank and by the Federal National Mortgage Association for itself and as trustee for several other agencies. Interest on the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 169 borrowing by Federal agencies from the public is reflected as expenditures of the individual programs and is not included under the heading of Interest. On the other hand, of the estimated net interest expenditures of $14.4 billion in the fiscal year 1969, about $3 billion will be paid to trust funds and other Government investment accounts on Government securities owned by them. GENERAL GOVERNMENT General government activities consist primarily of Federal legislative and judicial functions, general administrative and fiscal responsibilities, and programs for law enforcement and the administration of justice, including the civil rights activities of the Department of Justice. Budget outlays in 1969 for these general government functions will total $2.8 billion, $212 million more than in 1968. Nearly twothirds of this increase is for: ( 1) the proposed Safe Streets and Crime Control Act, and other law enforcement activities, (2) improvements in tax collection and administration by the Internal Revenue Service, and (3) strengthening State and local government personnel management and administration through the proposed Intergovernmental Manpower Act. Increases in these and other activities will be partly offset by a reduction in outlays for construction of Federal facilities. Legislative and judicial functions.-Expenditures for the legislative functions of the Government are expected to total $198 million in 1969, an increase of $13 million over 1968. Those for the Government's judicial functions will increase by $7 million in 1969, in part to finance the new Federal Judicial Center established by Public Law 90-219. The Center will focus attention on ways to improve the operation of the Federal judicial system. . . Central nscal operations.-Expenditures of the Internal Revenue Service in 1969 are estimated at $760 million, an increase of $73 million over 1968. This amount will permit the Service to process an expected 2.8 million additional tax returns, and to maintain the present audit level on 112 million returns a year. The program initiated in 1966 to centralize the filing of tax returns at automatic data processing centers will be further expanded in 1969. This program, scheduled to be completed by 1970, is producing significant improvements in tax administration. By eliminating the initial processing of returns in district offices and the transshipping of returns to service centers, an estimated $4 million in annual savings will be achieved when the changeover is completed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 170 THE BUDGET FOR FISCAL YEAR 1969 GENERAL GOVERNMENT [Fiscal years. In millions] E:r:penditures and net lending Program or agency 1967 actual Expenditures: Legislative functions 2 _______________________________ _ Judicial functions ___________________________________ _ Executive direction and management_ ________________ _ Central fiscal operations: Treasury Department: Internal Revenue Service ________________________ _ Other 2 ________________________________________ _ Other agencies 2 __________________________________ _ General property and records management: General Services Administration: Public Buildings Service: Construction, sites, and planning _______________ _ Operation, maintenance, and other 2 ____________ _ Other 2________________________________________ _ 1968 1969 estimate estimate Recommended NOA and LA for 1969 I $167 87 25 $185 95 31 $198 102 35 $196 102 34 662 253 53 688 2(/J 59 7(/J 280 63 758 264 63 184 152 367 110 106 379 164 11 362 114 153 12 53 153 20 53 458 39 32 457 80 33 198 6 184 6 11 -94 -117 347 88 Central lntelligency Agency building________________ _ 1 * Central personnel management: Civil Service Commission: Present programs________________________________ 129 150 Proposed legislation. ___________________________________________ _ Department of Labor and other 2____________________ 61 62 Law enforcement and justice: Department of Justice: Present programs 2______________________________ 401 425 Proposed legislation _____________________________________ _ 10 Other____________________________________________ 25 27 Other general government: Territories and possessions _________________________ _ Treasury-claims _________________________________ _ Other 2 __________________________________________ _ 157 49 7 -85 lnterfund and intragovernmental transactions ( - ) _____ _ Applicable receipts from the public (-) _______________ _ -161 187 8 8 I -92 -115 -94 -117 - - - - - - ---->---Subtotal, expenditures___________________________ 2,452 2,618 2,827 2,690 =====,1==== Net Lending _________________________________________ _ 2 -40 -37 -36 =====,!==== TotaL ___ _____________________________________ 2,454 2,578 2, 790 2,654 *Less than $500 thousand. 1 Compares with new obligational authority (NOA) and lending authority (LA) for 1967 and 1968, as follows: NOA: 1967. $2.463 million; 1968. $2,548 million. LA: 1967. -$3 million; 1968. -$42 million. 2 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 171 THE FEDERAL PROGRAM BY FUNCTION The transition to a largely nonsilver coin system has proceeded smoothly. Improved methods of estimating coin demand are being developed to gear future production more closely to demand for coins. Legislation has been proposed to establish a revolving fund to finance the operating activities of the Mint. The following table summarizes by major program categories the principal activities of the Treasury Department and identifies selected measures of output: MAJOR OUTPUTS, TREASURY DEPARTMENT [Fiscal years. Dollars in millions) Program Administration of Govtrnment finances _______________________ Number of savings type securities issued (million,s) __________ Number of savings type securities retired (millions) __________ Number of checks issued (millions) ________________________ Collection of internal revenue and customs duties ______________ Number of returns processed by Internal Revenue (millions) __ Number of returns examined and disposed of (millions) _______ Number of formal import entries filed (millions) _____________ Number of persons arriving in U.S. (millions) _______________ Manufacture and distribution of coins, currency, and other financial instruments ___________________________________ Currency produced and shipped (billions of pieces) ___________ Coins produced (billions of pieces) _________________________ Special law enforcement_ ___________________________________ Number of investigations and cases completed (thousands) ___ 1967 1968 1969 actual estimate estimate $94.9 119.0 106.1 414.8 $735.2 105.4 3.1 2.2 202.0 $100.6 142.3 110.9 434.5 $768.6 108.7 2.9 2.4 213.0 $105.5 153.1 116.8 451.6 $835. 9 111.5 3.2 2.6 223.4 $188.2 2.0 9.0 $64.7 131.6 $137.4 2.1 6.0 $71.8 141.7 $110.2 2.3 5.8 $80.8 148.3 Note.-Dollar figures refer to obligations in 1967, NOA in 1968 and 1969. Legislation is being proposed to extend the Renegotiation Act which · is scheduled to expire on June 30, 1968. General property and records management.-In line with stringent budget directives to reduce less essential activities where possible, no new obligational authority is requested for 1969 for constructing new Federal buildings. The $11 million of new obligational authority requested for 1969 will meet only the most pressing requirements for the acquisition of sites and the planning of new buildings. This amount is $73 million below the new obligational authority for 1968. Expenditures for construction will drop to $106 million in 1969, $46 million less than in 1968. Expenditures for the operation, maintenance, repair and improvement of office and other space for Federal agencies will increase by $12 million to $379 million. Expenditures for other General Services https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 172 THE BUDGET FOR FISCAL YEAR 1969 Administration activities will increase by $54 million in 1969 primarily because of the increased inventory support of military operations in Southeast Asia. General Government - Program Trends Millions Billions 12 - - 4 Bureau ol the M int 10 - 8- 6 - 420 _._......_._........__.___._.__..__..._....__..........., Millions 110- Tax Collection 100- Returns Filed Government Space Managed 90- o 1 I t 1958 60 Fiscal Yea,s - 50 62 64 66 68 691958 Eltimotc 60 62 64 66 68 69 Estimate Central personnel management.- The Federal Salary Act of 1967: (1) provided for pay increases effective October 1, 1967, for civil and postal service employees and established provisions for additional upward adjustments on July 1, 1968, and July 1, 1969, to make Federal salary rates comparable with private enterprise rates; (2) established a Commission on Executive, Legislative, and Judicial Salaries to review and recommend rates of pay and pay relationships among members of the Congress, execu.t iv>e branch officials and the judiciary beginning in fiscal 1969 and every fourth year thereafter; and (3) provided higher life insurance benefits for employees and added a new optional insurance program. This budget includes a special allowance of $1.6 billion for the estimated cost of the second step of the civilian pay increase and the associated increase in military pay. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY FUNCTION 173 Legislation has been proposed which will permit State and local governments to increase the effectiveness of their programs to train_ capable public employees through assistance grants and interchanges of personnel with the Federal Government. Law enforcement and justice.-Expenditures of the Department of Justice in 1969 are estimated to increase by $62 million over the 1968 level. The largest part of this increase will be used to carry out provisions of the Safe Streets and Crime Control Act which is now pending in the Congress. This legislation will authorize a new program of Federal financial and technical assistance to State and local governments to help combat crime. Expenditures for Federal assistance programs, estimated at $53 million in 1969, will encourage comprehensive planning and will support significant new efforts to improve law enforcement and criminal justice systems at the State and local levels. An allowance is also provided in the budget to strengthen and intensify direct Federal efforts to control and reduce cnme. Civil rights.-An increase of $19 million has been provided for various agencies throughout the Government to expand activities which seek to secure the civil rights of individuals and minority groups. These increases will be used to: (1) enforce provisions of Title VI of the Civil Rights Act of 1964 and other Federal directives which seek to assure nondiscrimination by organizations receiving Federal financial assistance and by Federal contractors, (2) finance technical assistance and the expanded responsibilities of the Equal Employment Opportunity Commission, (3) provide for a 37% expansion in the Community Relations Service in the Justice Departmentprimarily in the field conciliation program, (4) expand the potential for legal action by increasing legal staff, and (5) increase the number of FBI personnel available to investigate alleged civil rights violations. Pending legislation should be enacted to assure nondiscrimination in employment, housing, and jury selection and to prevent interference with an individual's civil rights. Other general government.-Legislation enacted by the 90th Congress provides for further capital improvements and expa.nded programs in health, education, transportation and public affairs in the Trust Territory of the Pacific Islands. Under this authority, $34 million is proposed for 1969. Net lending of $6 million is estimated for fiscal year 1969 to finance activities in Guam and in the Ryukyu Islands. Requirements for claims and judgment against the Federal Government are uncertain for 1968 and 1969, and are covered by the allowance for contingencies. Amounts known for 1968 will be transmitted to the Congress early in this session. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 174 THE BUDGET FOR FISCAL YEAR 19 6 9 Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars) BUDGET AUTHORITY De11cription OUTLAYS 1967 1968 1969 1967 actual estimate estimate actual 1968 1969 estimate estimate - -------------- N EW 050 OBLIGATIONAL AUTHORITY AND EXPENDITURES NATIONAL DEFENSE 051 Department of Defense-Military: Military personnel_ ________________ 20,216 Operation and maintenance _________ 19,434 Procurement_ _____________________ 22,871 Research, development, test, and evaluation ______________________ 7,172 Military construttion ______________ 1,098 Other 1___________________________ 1,637 22,199 23,037 20,548 22,839 20,716 23,254 7,148 1,405 904 19,787 19,000 19,012 21,800 19,800 21,470 22,793 22,260 23,445 8,006 1,430 698 7,160 1,536 1,114 7,200 1,565 2,025 7,800 1,450 -942 1,860 1,943 1,675 1,855 - - - - - - - - - - - -- - - --72,920 79,265 67,608 73,860 76,806 - - -- - -- - -- - -- - ---- Total 05 I__ ____________________ 72,429 057 Military assistance: Funds appropriated to the President 1 ___ 2,261 1,750 Treasury Departme:i.t_ ________________ -------- -------- -2 -------- --------------- - -------------Total 057 _____________________ 2,261 1,750 1,860 1,943 1,675 1,853 ------ 0§8 Atomic energy: Atomic Energy Commission 1 __________ 059 Defense-related activities: 2,199 2,510 2,755 2,264 2,334 2,546 - - - - - - - - - - - - - - - --- Executive Office of the President _______ 4 3 3 Funds appropriated to the President_ ___ -------- -------- -------Department of Health, Education, and Welfare ___________________________ 10 9 2 General Services Administration ________ 20 19 22 Other independent agencies: Selective Service System _____________________ 59 62 64 Total 059 _______________________ Adjustments: 4 -102 4 22 3 146 6 19 8 19 5 23 58 61 64 - - - - - -- - -- - -- - ---93 92 91 -14 115 242 - - - - - - - - - - - - - - - --- lnterfund and intragovernmental transactions ____________________________ -7 -7 -7 -7 -7 -7 Applicable receipts from the public _____ -1,699 -1,484 -1,647 -1,699 -1,484 -1,647 Total, national defense ____________ I - - -- - -- - -- - -- - ---75,276 75,780 82,317 70,095 76,491 79,792 ---= - - -- - -- - ---- Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 175 THE FEDERAL PROGRAM BY FUNCTION Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY OUTLAYS Description 1967 1968 1969 1967 actual estimate estimate actual 1968 1969 estimate estimate ---------------1--- - - - -------- - - - --- NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES-Continued 150 INTERNATIONAL AFFAIRS AND FINANCE 151 Conduct of foreign affairs: Department of Justice (trust funds) ____ -------Department of State 1________________ 322 Treasury Department (trust funds) ____ 3 Other independent agencies: Arms Control and Disarmament Agency _________________________ 9 Foreign Claims Settlement Commis• I 2 s1on --------------------------Tariff Commission __________________ 4 Total 151_______________________ 339 -------- -------350 319 4 5 2 321 8 4 337 5 53 355 6 9 10 10 9 10 I 4 II 4 21 3 200 4 11 4 337 380 366 559 438 152 Economic and financial assistance: Funds appropriated to the President 1___ 2,611 2,410 3,382 Department of Agriculture ___________________________________ _ 6 6 6 Department of State'---------------DepartmentofTransportation 1________ 6 12 5 Other independent agencies: ExportImport Bank _____________________________________________ _ Total 152_______________________ 2,623 2,428 3,393 2,601 2,540 2,653 -------- ------8 6 12 13 14 *8 -104 -144 -110 2,517 2,417 2,564 3 56 52 52 185 187 194 153 Foreign information and exchange activities: Funds appropriated to the President_ __________________________ _ 53 51 54 Department of State 1 ________________ Other independent agencies: United 173 198 179 States Information Agency 1_________ Total 153 ______________________ _ 154 Food for Freedom: Department of Agriculture____________ 16 9 226 248 233 245 256 255 I, 617 I, 606 918 1,452 1,315 1,444 Adjustments: Interfund and intragovernmental transactions____________________________ Applicable receipts from the public_____ * * -469 -217 -10 -214 -469 -217 * -10 -214 Total, international affairs and finance________________________ 4,336 4,402 4,700 4, 110 4,330 4,478 4,968 4,591 4,372 5,426 4,808 4,577 * 250 SPACE RESEARCH AND TECHNOLOGY 251 Space research and technology: National Aeronautics and Space Administration'---------------------- • Leu than $500 thousand. Includes both Federal funds and trust funds. I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 176 THE BUDGET FOR FISCAL YEAR 19'69 Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY OUTLAYS Description 1967 1968 actual 1969 estimate estimate 1967 1968 actual 1~69 estimate estimate -------------- ------------ -----NEW OBLIGATIONAL AUTHORITY AND EXPENDITURE~Continued Adjustments: lnterfund and intragovernrnental transactions ____________________________________________________ -------- -------- ------Applicable receipts from the public ____ _ -2 -4 -3 -2 -4 -3 Total, space research and technology________________________ 4,966 4,587 4,369 5,423 4,803 4,573 3, 311 3,315 4,178 2,267 3,428 3,459 4 91 I02 7 -17 -6 -21 -48 -64 350 AGRICULTURE AND AGRICULTURAL RESOURCES 351 Farm income stabilization: Department of Agriculture 1______ 352 Financing farming and rural housing: Department of Agriculture'----------81 103 92 Department of Housing and Urban Development_ ____________________________________________ _ Other independent agencies: Farm Credit Administration 1____________________________________ _ Total 352 ______________________ _ 81 103 92 -10 26 32 12 12 13 12 13 13 358 363 242 353 362 350 593 628 648 569 622 * * I * 593 628 648 570 623 662 lnterfund and intragovernmental transactions ___________________________ _ Applicable receipts from the public ____ _ -5 -32 -5 -34 -6 -36 -5 -32 -5 -34 -6 -36 Total, agriculture and agricultural resources______________________ 4,318 4,383 5, 131 3, 156 4,412 4,474 353 Financing rural electrification and rural telephones: Department of Agriculture ___________ _ 354 Agricultural land and water resources: Department of Agriculture 1__________ _ 355 Research and other agricultural services: Funds appropriated to the President_ __ _ Department of Agriculture 1___________ Other indepen~e~t agencies: Temporary study comm1ss1ons _________________ _ Total 355 ______________________ _ * * 662 Adjustments: *Leu than $500 thousand. Include, both Federal funds and trust funds, I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 177 THE FEDERAL PROGRAM BY FUNCTION Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY Description OUTLAYS 1967 1968 1969 1967 actual estimate estimate actual 1968 1969 estimate estimate ------ -----------NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES-Continued 400 NATURAL RESOURCES 401 Land and water resources: Department of Agriculture ____________ Department of Defense-Civil'-------Department of the Interior 1___________ Department of State __________________ Other independent agencies: Federal Power Commission __________ Intergovernmental agencies_________ Temporary study commissions _______ Tennessee Valley Authority __________ Water Resources Council 1 __________ 992 16 61 1,283 998 9 I. 301 I. 341 865 23 93 1,313 939 16 14 15 16 14 15 16 *I *3 *I *I *2 * 97 102 I. 319 I. 327 938 13 108 780 28 106 3 61 50 150 102 109 5 4 6 4 2 --------------- --Total 40L ______________________ 3,450 2,520 2,424 2,335 2,465 2,536 --------------- --1,064 2 40Z Forest resources: Department of Agriculture I ___________ Department of the Interior ____________ 565 486 461 495 470 534 21 22 22 21 22 22 --------------- --Total 402 _______________________ 555 587 508 482 518 493 - - - - - - - - - - - - - - - --- 403 Mineral resources: Department of the Interior! ___________ 120 125 126 122 131 133 --------------- --- 404 Fish and wildlife resources: Department of Defense-Civil__ _______ Department of the Interior'----------Department of State __________________ * * * * * * 231 262 245 194 245 309 146 160 156 133 151 156 2 2 2 2 2 2 --- ------------ --Total 404 _______________________ 158 148 162 158 136 153 ------------------ 40S Reereational resources: Department of the Interior 1___________ Other independent agencies: Historical and memorial commissions __________ Total 405 _______________________ * --* --* --* --* - - -* --262 245 194 309 231 245 ------------------ 409 General resource surveys and administration: Department of the Interior 1___________ 184 191 275 250 239 184 --------- --- --- --- Adjustments: lnterfund and intragovernmental transactions ____________________________ -22 -I Applicable receipts from the public _____ -1,410 -1,348 -1,381 -22 -I * -1.410 -1. 348 -1,381 --------------- --Total, natural resource, ___________ 3,262 2,488 2,271 2, 113 2,416 2,483 - - - - - - - - - - - - - - - --- * *Less than $500 thouoand. Include• both Federal fund, and truot fund,. I ,300-000 0-68-12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 178 THE BUDGET FOR FISCAL YEAR 196 9 Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY OUTLAYS Description 1967 1968 1969 1967 actual estimate estimate actual 1968 1969 estimate estimate ----------------1----- ---- - - - - - - ---- --- NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES---Continued 500 COMMERCE AND TRANSPORTATION 501 Air transportation: Department of Transportation ________ _ Other independent agencies: Civil Aeronautics Board _____________________ _ 991 918 1,064 883 892 I, 228 68 55 53 62 58 54 Total 501__ ______ _____________ __ 1,060 973 I, 117 945 950 1,282 302 364 380 497 489 617 5 7 6 502 Water transportation: Department of Commerce'-----------340 482 482 Department of Defens~Civil_ _______________________________ _ 500 541 559 Department of Transportation'-------Other intepen~e~t agencies: Temporary 7 6 5 study comm1ss1ons__________________ -13 -6 -2 Total 502 ______________________ _ 847 I. 030 I, 046 792 855 1,000 503 Ground transportation: Department of Transportation'-------- 4,777 5,250 4,894 4,050 4,385 4,420 505 Postal Service: Post Office Department_______________ I, 215 1. 174 920 1. 141 1,087 767 336 6 lO 5 341 17 360 24 -8 -9 -9 -239 83 -261 69 -274 52 506 Advancement of business: Funds appropriated to the President ____ 9 -------- -------Department of Commerce 1____________ 324 363 311 7 23 17 Department of Transportation'-------Department of Housing and Urban Development_ _____________________ -------- -------- -------Other independent agencies: Federal Deposit Insurance Corporation ( trust funds) ________________ -------- -------- -------Small Business Administration _______ 9 13 13 Total 506 ______________________ _ 336 507 Area and regional development: Funds appropriated to the President_ __________ _ Department of Agriculture____________ 3 351 Department of Commerce'-----------Department of the Interior____________ 7 Other independent agencies: Federal Field Committee for Development Planning in Alaska _______ _ * Intergovernmental commissions'----Total 507 ______________________ _ * Leu than $500 thousand. I 364 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 354 400 189 160 153 127 214 156 236 209 229 21 3 111 2 153 186 * * * * * 338 445 137 312 425 2 2 2 2 179 THE FEDERAL PROGRAM BY FUNCTION Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY OUTLAYS Description -------------- 1967 1968 1969 1967 actual estimate estimate actual 1968 1969 estimate estimate ------ ------------ NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES-Continued 508 Regulation of business: 5 7 5 8 10 5 8 8 -2 5 8 -2 8 -I 11 9 IO 12 9 IO 18 19 21 3 4 4 14 27 17 15 24 18 16 24 18 18 3 14 27 17 19 4 15 24 18 21 4 15 24 18 I03 102 111 IOI 100 I07 Interfund and intragovernmental transactions ___________________________ _ Applicable receipts from the public ____ _ -1 -47 -24 -132 -8 -149 -I -47 -24 -132 -8 -149 Total, commerce and transportation___________________________ 8, 653 9, 066 8, 776 7, 308 7, 695 7, 996 Department of Commerce_____________ Department of Justice________________ Treasury Department ( trust funds) ___ _ Other independent agencies: Civil Aeronautics Board_____________ Federal Communications Commis• I s1on --------------------------Federal Maritime Commission ______ _ Federal Trade Commission _________ _ Interstate Commerce Commission ___ _ Securities and Exchange Commission_ Total 508 ______________________ _ IO Adjustments: 550 HOUSING AND COMMUNITY DEVELOPMENT 551 Aid lo private housing: 3 -------- -------- Funds appropriated to the President_ __ _ Department of Housing and Urban Development 1____________________ _ Other independent agencies: Federal Home Loan Bank Board ___________ _ 116 Total 55 L _____________________ _ 132 15 269 I, 048 3 -------- -------26 -155 -78 -201 -384 -378 23 -225 -539 -457 31B 380 251 297 350 I, 476 2,274 504 865 I, 432 15 23 13 -------- -------- 552 Public housing programs: Department of Housing and Urban Development_ ____________________ _ 553 Urban renewal and co-unity facilities: Department of Housing and Urban Development______________________ I Include, both Federal fund, and tru,t fund,. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 180 THE BUDGE'J' FOR FISCAL YEAR 1969 Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY OUTLAYS Description 1967 1968 actual 1969 1967 estimate estimate 1968 actual 1969 estimate estimate ________________ ,____ - - - - - - - - - - - - - - - NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES-Continued 555 National Capital region: Other independent agencies: Commission of Fine Arts ___________ _ District of Columbia _______________ _ Intergovernmental commissions _____ _ National Capital Housing Authority __ National Capital Planning Commis• I __________________________ _ s10n National Capital Transportation Agency ________________________ _ Temporary study commissions_. ____ _ * * * 73 * * * 61 * * * 85 1 1 1 1 2 10 -------- -------- 3 75 66 61 1 83 55 -------- -------- 73 Proposed housing and urban development legislation __________________________________________ _ Adjustments: Interfund and intragovemmental transactions ___________________________ _ Applicable receipts from the public ___ _ 140 * 84 18 2 ----- -- * * Total 555 ______________________ _ * 90 30 -------- -------- 104 14 -19 -15 -15 -14 * -14 * -19 * * * * Total, housing and community development__ ___________________ · 1,503 1,869 2,833 577 697 1,429 12,066 13,609 7, 722 10, 734 12,041 15 11 1,251 119 12 1,303 7 13 * * 7 32 2 8 35 2 650 HEAL TH, LABOR, AND WELFARE 651 Health services and research: Department of Health, Education, and Welfare 1___ ______________ ____ _____ 9,372 652 Labor and manpower: Department of Health, Education, and Welfare __________________________________ _ 40 135 -------Department of the Interior____________ 10 11 11 10 Department of Labor!________________ 1,156 1,208 1,015 1. 341 Other independent agencies: Equal ~m_Ployment Opportunity Comm1ss1on ____________________ _ 5 7 5 13 Federal Coal Mine Safety Board of Review ________________________ _ * * * Federal Mediation and Conciliation Service _________________________ _ 7 7 8 7 National Labor Relations Board _____ _ 35 30 32 31 National Mediation Board. ________ _ 2 2 2 2 President's Advisory Committee on Labor-Management Policy _______________________________ _ Temporary study commissions_ _____________________________ _ * Total 652_______________________ • LeH than $500 thousand. t 1,211 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,307 1,546 * * * 1,069 1,326 - - - - --------- 1,492 181 THE FEDERAL PROGRAM BY FUNCTION Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in million■ of dollars)-Continued BUDGET AUTHORITY Description 1967 1968 actual 1969 OUTLAYS 1967 1968 eatimate eatimate actual 1969 eatimate estimate ------------- - NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES-Continued 653 Public assistance (excluding medical care for the aged) : · Department of Health, Education, and Welfare ___________________________ 654 Retirement and social insurance: The Judiciary (trust fund) ____________ Department of Health, Education, and Welfare __________________________ 1 Department of Labor (trust funds) _____ Department of State (trust funds) _____ Other independent agencies: Civil Service Commission (trust funds) _________________________ Railroad Retirement Board (trust funds) ___________ ----- ___ -- -- -- 3,048 3,SOI 3,703 3,041 3,484 3,605 I I I I I I 25,515 3,380 II 26,843 3,S03 11 31,256 3,557 12 21,725 23,918 2,189 2,564 II 12 27,598 2,558 13 2,980 3,440 3,740 1,877 2,037 2,272 1,499 1,640 1,905 1,315 1,415 1,490 1,663 1.749 2,176 1,485 1.853 1,997 25 457 30 517 15 598 53 418 45 500 586 487 553 699 416 539 661 17 18 18 17 18 18 905 I, I02 - - -- - - - - - - - -- - -- Total 654 _____________________ 33,387 35,439 40,472 27,117 29,946 33,932 - - - - - - - - -- - -- - - - - 655 Economic opportunity programs: Funds appropriated to the President 1 __ 659 Other weUare services: Funds appropriated to the President ____ Department of Agriculture ____________ Department of Health, Education, and Welfare 1__________________________ Other independent agencies: Railroad Retirement Board __________________ --------Total 659 _______________________ 986 I, 117 1,330 - - -- - - - - -- - Adjustments: 36 1.302 -- lnterfund and intragovemmental transactions ____________________________ -1,766 -2,044 -2,420 -1,766 -2,044 -2,420 Applicable receipts from the public _____ -5 -3 -61 -5 -3 -61 -----Total, health, labor, and welfare ___ 47,841 53,131 60,413 39,512 46,396 51,945 700 EDUCATION 701 Elementary and ■econdary educalion: Department of Health, Education, and Welfare ___________________________ 702 Higher education: Department of Health, Education, and Welfare ___________________________ Department of Housing and Urban Development_ _____________________ Total 702_ ---------------------I --1,980 2,194 2,103 1,859 1.930 1,264 1,199 786 715 1,038 993 2 24 63 -4 19 72 1,266 1,223 849 711 1,057 1,065 ------ --- - - - Includes both Federal fund, and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,931 -- 182 THE BUDGET FOR FISCAL YEAR 19 6 9 Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY OUTLAYS Description 1967 1968 1969 1967 actual eatimate estimate actual 1968 1969 estimate estimate --------------1·-----------------NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES-Continue~ 703 Science education and basic research: Other ind~dent agencies: National Science Foundation 1 _______1_______ _ 480 495 500 415 456 480 30 40 44 443 112 515 116 632 153 ------1---1---+-- 704 Other aid to education: Legislative Branch!__________________ 34 41 45 Department of Health, Education, and Welfare___________________________ 517 556 870 Department of the Interior____________ 118 131 155 Other independent agencies: National Capital Planning Commission ____________ . ______________________________________ _ National Foundation on the Arts and the Humanities!_________________ 12 13 24 Smithsonian Institution i____________ 34 35 55 Total 704 _______________________ _ 716 776 1,148 * -------- ------10 32 15 43 23 54 628 730 905 Adjustments: lnterfund and intragovernmental transactions __________________________________________________________________________ _ Applicablereceiptsfromthepublic_____ -II -15 -16 -11 -15 -16 Total, education__________________ 800 VETERANS BENEFITS 4,430 4,673 4,585 3,602 4,157 4,364 - - - I-------------______________ _ AND _ _ _ Propo!!Ji!~~!!on___________________ _ _ _ _ _ _ 9 ________ ________ -18 801 Veterans serrice-connected compensation: Veterans Administration______________ 2,403 2,434 2,461 2,310 2,435 2,461 802 Veterans non-serrice-connected pensions: Veterans Administration______________ 1,969 2,062 2, IOI 1,893 2,063 2, IOI 803 Veterans readjustment benefits: Department of Housing and Urban Development___ __________ __ __ ______ __ Veterans Administration______________ 258 799 748 -15 297 -4 484 -10 621 Total 803 _______________________ _ 258 799 748 282 480 611 804 Veterans hospitals and medical care: Veterans Administration_______________ 1,409 1,479 1,522 1,391 1,458 1,546 0 Le11 than $500 thousand. t Includes both Federal fund, and trust fund,. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 183 THE FEDERAL PROGRAM BY FUNCTION Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY Deacription 1967 actual 1968 1969 OUTLAYS 1967 estimate estimate actual 1968 1969 estimate eatimate --------------- NEW OBLIGATIC>NAL AUTHORITY AND EXPENDITURES-Continued 805 Other veterans benefits and services: Department of Defens~Ci vii 1________ Veterans Administration 1 _____________ Other independent agencies: American Battle Monuments Com• • I m1ss1on -----------------------Historical and memorial commissions ___ Total 805 _______________________ Adjustments: lnterfund and intragovcmmcntal transactions ____________________________ Applicable receipts from the public _____ Total, veterans benefits and services ___________________________ 850 INTEREST 28 808 30 1,001 I, 140 25 22 973 31 832 27 895 2 2 2 2 2 2 -------------- --------------**-------------I, 167 838 1,033 997 865 924 - - -- - -- - -- - -- - ---- -6 -6 -5 -5 -5 -5 -502 -497 -489 -502 -497 -489 - - - - - - - - - - - - - - - --6,369 7,305 7,515 6,366 6,798 7, 131 - - - - - - - - - - - - - - - --- 851 Interest on the public debt: Treasury Department_ ________________ 13,391 85Z Interest on refunds of receipts: Treasury Department_ ________________ 853 Interest on uninvested funds: Treasury Department_ ________________ Adjustments: lnterfund and intragovernmental transactions ____________________________ Applicable receipts from the public _____ 14,350 15,200 13,391 14,350 15,200 - - - - - - - - - - - - - - - --120 137 120 134 137 134 - - - - - - - - - - - -- - - - - 13 13 12 13 13 12 - - -- - - - - - - - - - - - --- -676 -672 -653 -676 -672 -653 -296 -300 -290 -296 -300 -290 -----------------Total, interest_ __________________ 12,548 13,535 14,400 12,548 13,535 14,400 ------------= --- 900 GENERAL GOVERNMENT 901 Legislative functions: Legislative Branch ___________________ 90Z Judicial functions: The Judiciary________________________ Other independent agencies: Indian Claims Commission _________________ Total 902 _______________________ 168 183 196 167 185 198 ---- - -- - - - - -- - ---90 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 102 87 95 IOI I I I I * --* ----- - -- - --96 102 87 95 102 90 --- --------------- *Less than $500 thousand. Includes both Federal funds and trust funds. I 95 184 THE BUDGET FOR FISCAL YEAR 19 6 9 Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars}-Continued BUDGET AUTHORITY OUTLAYS Description 1967 actual 1968 1969 1967 estimate estimate actual 1968 1969 estimate estimate ------------ --NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES-Continued 903 Executive direction and management: Executive Office of the President_ ______ 28 30 23 25 28 30 Funds appropriated to the President_ ___ 1 1 1 1 2 Treasury Department_ ________________ 1 1 1 1 1 1 General Services Administration ________ 1 1 Other independent agencies: Federal Radiation Council__ _________ Temporary study commissions _______ -------2 1 -------2 -----------------Total 903 _______________________ 31 35 28 33 34 25 * * 904 Central fiscal operations: Legislative Branch 1__________________ Treasury Department 1 _______________ Other independent agencies: Board of Governors, Federal Reserve System (trust funds) ______________ Renegotiation Board ________________ Tax Court of the United States! _____ Temporary study commissions _______ Total 904 _______________________ * * * * * * * * * * -----------------49 906 -------- 3 2 54 943 -------3 2 -------- 58 1,022 -------- 3 3 49 915 54 947 58 1,041 *3 *3 *3 2 2 2 968 1,007 1, 104 619 629 648 -------- -------* ---* - - -* ---------- 961 1,003 1,085 ------------------ 905 General property and records management: General Services Administration 1______ 600 557 487 Other independent agencies: Central Intelligence Agency ___________________ -------- -------- -------- * ----------------Total 905 ________ - ______ --- ___ -629 648 600 557 487 620 -----------------1 ------- 906 Central personnel management: Department of Labor! ________________ Other independent agencies: Civil Service Commission ____________ Temporary study commissions _______ Total 906 _______________________ 61 62 53 61 62 53 134 149 173 129 150 165 -------------* --** --*-------196 211 226 191 212 218 401 457 24 537 401 21 435 24 497 -----------------908 Law enforcement and justice: Department of Justice 1_______________ Treasury Department_ ________________ Other independent agencies: Administrative Conference of the United States __________ ------- ___ Civil Service Commission ____________ Commission on Civil Rights _________ Subversive Activities Control Board __ Temporary study commissions _______ Total 908 _______________________ 22 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28 * -------* *3 3 *1 * * * * *1 * * * * - - -- - - ---- - - - - - ----------- * * 1 -------- -------3 3 2 -------1 2 426 462 529 427 484 569 --------- --------- *Leu than $500 thousand. Includes both Federal funds and trust funds. 1 29 185 THE FEDERAL PROGRAM BY FUNCTION Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY {in millions of dollars)-Continued BUDGET AUTHORITY Description OUTLAYS 1967 1968 1969 1967 actual estimate estimate actual 1968 1969 estimate estimate --------- ------- NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES-Continued 910 Other general government: Legislative Branch ___________________ Funds appropriated to the President_ ___ Department of Defense-Civil__ _______ Department of the Interior ____________ Treasury Department 1_______________ Other independent agencies: Historical and memorial commia. I _11ona -------------------------Intergovernmental commiasiona 1_____ Total 910 _______________________ Adjustments: 7 8 * * -------- ------- 21 8 II 73 41 104 61 48 72 60 57 73 62 36 108 71 50 73 65 66 73 * -------- * * * * I I I I I I - - - - - - - - - - - - - - - --213 203 205 240 189 201 - - - --- Interfund and intragovernmental transactions ____________________________ Applicable receipts from the public _____ -94 -85 -94 -85 -92 -92 -117 -161 -117 -161 -115 - - - - - - - - - - - - - - - --Total. general gOYernment_ ________ 2,463 2,548 2,690 2,452 2,618 2,827 - - - - - - - - - - - - - - - --- -m Allowances for: Civil!-n an~ military pay increase ______ --- -- -- Contingenaes ___________________ ---- - Undidributed menta: intragovernmental pay- 150 1,600 -------- -------100 550 -------- 1,600 350 Government contributions for employee retirement _________________________ -1,735 -1.913 -2,007 -1,735 -1.913 -2,007 Interest received by trust funds ________ -2,287 -2,678 -3,042 -2,287 -2,678 -3.042 - - - - - - - - - - - - - - - --- Total, new obligational authority and expenditures _______________ 171,944 179,325 197,105 153,238 169,856 182,797 LOAN AUTHORITY AND NET LENDING 050 NATIONAL DEFENSE 051 Department of Defense-Military ___ 059 Defense-related activities: Funds appropriated to the President: -I * * ---------------------- -- - -- - - ------- Defense Production Act_ ____________ Treasury Department ________________ -3 -3 -------- -------- -------- -3 -* -* -* -* -* -* - - - - - - - - - - - - - - - --Total, national defense ____________ -------- -------- --------4 -3 -2 ------ 150 INTERNATIONAL AFFAIRS AND FINANCE 152 Economic and financial usiatance: Other independent agencies: ExportImport Bank. ____________________ •• 779 865 608 540 716 675 -----------------*Le11 than $S00 thousand. Includes both Federal funds and trust funds. I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 186 THE BUDGET FOR FISCAL YEAR 19 6 9 Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued OUTLAYS BUDGET AUTHORITY Description 1967 1968 actual 1969 1967 estimate estimate actual 1968 1969 estimate estimate ---------------,---- ---- - - - - - - - - - - - LOAN AUTHORITY AND NET LENDING-Continued 350 AGRICULTURE AND AGRICULTURAL RESOURCES 351 Farm income stabilization: Department of Agriculture ___________ _ 262 -29 24 262 -29 24 672 751 426 43 -100 -6 35Z Financing farming and rural housing: Department of Agriculture ____________ Department of Housing and Urban Development_ ________________________ Other independent agencies: Farm Credit Administration ______________ Total 352 ______________________ _ -------- -------- -------- 14 -------- 189 485 541 671 749 771 861 1,236 967 728 649 751 282 243 234 232 279 360 353 F'mancing rural electrification and rural telephones: Department of Agriculture ___________ _ -14 354 Agricultural land and water resources: Department of Agriculture ___________ _ * Total, agriculture and agricultural resources.____________________ I, 405 1,450 1,225 1,221 899 I. 135 Department of Agriculture ___________ _ Department of the Interior ___________ _ 5 13 14 4 18 15 6 Total 401.. ____________________ _ 17 14 4 18 15 6 -* * * 400 NATURAL RESOURCES 401 Land and water resources: 404 F'11h and wildlife resources: Department of the Interior. __________________________________ _ t09 General resource surveys and administration: Department of the Interior ___________________________________ _ Total, natural resources __________ _ 17 14 4 19 16 7 -8 -6 -6 -9 -8 -7 500 COMMERCE AND TRANSPORTATION 50Z Water transportation: Department of Commerce ____________ _ 506 A:dvancement of business: Department of Housing and Urban Development______________________________________________ Other independent agencies: Small Busi850 150 150 ness Administration________________ Total 506 _______________________ *Lesa than $500 thousand. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~~~ 33 ________ 68 101 \ 114 -34 102 114 ~ 187 THE FEDERAL PROGRAM BY FUNCTION Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY Oe1cription 1967 actual 1968 1969 estimate estimate OUTLAYS 1967 actual 1968 1969 estimate e■timate --------------1------------------LOAN AUTHORITY AND NET LENDING-Continued 507 Area and regional development: Department of Commerce ____________ _ 508 Regulation of business: Other independent agencies: Interstate Commerce Commission _____________ _ Total, commerce and transportation_ 78 74 88 29 53 65 17 -* -* 17 -* -* 938 217 232 138 158 125 1,517 3,185 1,265 44 -8 -20 1,561 3,177 1,245 14 22 -16 80 114 42 61 ---------1-------1--- 550 HOUSING AND COMMUNITY DEVELOPMENT 551 Aids to private housing: Department of Housing and Urban Development_________________________ 5,267 1,899 1,914 Other independent agencies: Fcderal Home Loan Bank Board ___________________________________ _ Total 55L _____________________ 5,267 1,899 1,914 552 Public housing programs: Department of Housing and Urban Development_ ____________________________________________ _ 553 Urban renewal and community facilities: Department of Housing and Urban Development _____________________ _ 80 80 555 National Capital region: Other independent agencies: National Capital Planning Commission ___________________________ _ District of Columbia ______________ _ -1 75 116 141 * -1 20 16 * I 65 Total 555 ______________________ _ 74 116 141 19 16 65 Total, housing and community development_____________________ 5,421 2,095 2,135 1,708 3,257 1,355 15 -------- -15 4 4 * 650 HEALTH, LABOR, AND WELFARE 651 Health services and research: Department of Health, Education, and Welfare __________________________ _ 653 Public assistance (excluding medical care for the aged) : Department of Health,. Education, and Welfare _____________ --- --- -------*Lesa than $500 thousand, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 -------- -15 4 4 3 3 188 THE BUDGET FOR FISCAL YEAR 1969 Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollars)-Continued BUDGET AUTHORITY Description OUTLAYS 1967 1968 1969 1967 actual estimate estimate actual 1968 1969 estimate estimate --- --- ------ --- --LOAN AUTHORITY AND NET LENDING-Continued 654 Retirement and social insurance: Department of Health, Education, and Welfare ___________________________ Department of Labor_ ________________ Other independent offices: Civil Service Commission ___________ Railroad Retirement Board _________ Total 654 _______________________ 655 Economic opportunity programs: Funds appropriated to the President_ ___ 188 -------114 -------- -188 -114 188 -------114 -------- -188 -114 114 -------114 -------- -114 -114 114 -------114 -------- -114 -114 -----------------530 -------- -530 530 -------- -530 -----------------22 14 4 24 17 3 -1 1 1 -2 * 1 301 102 101 83 67 79 600 1,900 585 364 316 255 901 2,002 686 447 383 334 901 2,002 687 445 384 335 -----------------Total, health, labor, and welfare ___ -538 570 18 -538 572 21 - - - - - - - - - - - - - - - --- 700 EDUCATION 701 Elementary and secondary edu- cation: Department of Health, Education, and Welfare ___________________________ 702 Higher education: Department of Health, Education, and Welfare ___________________________ Department of Housing and Urban Development_ _____________________ Total 702 _______________________ Total, education _________________ 800 VETERANS - - - - - - - - - - - - - - - --- --- --------------- - - - - - - - - - - - - - - - -------------------- BENEFITS AND SERVICES 803 Veterans readjustment benefits: Department of Housing and Urban Development_ _____________________ -------- -------- -------Veterans Administration ______________ 371 496 396 Total 803 _______________________ 805 Other veterans benefits and services: Veterans Administration ______________ Total, veterans benefits and se"• ices ___________ ----- -- ------- - 900 GENERAL GOVERNMENT 904 Central fiscal operations: Treasury Department_ ________________ 905 General property and records management: General Services Administration ________ *Less than $500 thousand. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 271 312 ------------ --312 371 496 396 313 --------------- -58 363 305 219 58 -94 219 58 -94 590 555 302 532 370 211 -* -* ----------------------------- -* -* -* - - -- - -- - -- - - - - -3 -46 -3 -46 -41 --------------- -* -41 189 THE FEDERAL PROGRAM BY FUNCTION Table 13. BUDGET AUTHORITY AND OUTLAYS BY FUNCTION AND AGENCY (in millions of dollara)-Continued OUTLAYS BUDGET AUTHORITY Description 1967 actual 1968 1969 estimate estimate 1967 actual 1968 1969 estimate eatimate --- --- LOAN AUTHORITY AND NET LENDING-Continued 910 Other general government: Department of Defense-Civil__ _______ -------- -------- -------* * ------Department of the Interior ____________ 4 4 6 5 5 * - - - - - - - - - - - - - - ---Total 9IO _______________________ 6 6 5 4 5 * - - - - - - - - - - - - - - - --Total, general government____ _____ -37 -3 -42 -36 2 -40 --Total, loan authority and net lending ___________________________ ==1=== I0,618 ~ ~ ~ 5,779 3,265 Total, budget authority and outlays_ 182,.562 1186,499 j201,723 1158,414 1175,635 186,062 *Lesa than $500 thousand. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PART 5 THE FEDERAL PROGRAM BY AGENCY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 191 EXPLANATION OF MEANS OF FUNDING AGENCY ACTIVITIES TYPES OF FUNDS Agency activities are financed through Federal (Governmentowned) funds and through trust funds. The Federal fu_nds are of four types. The general fund is credited with receipts not earmarked by law, and is charged with payments from such revenues and from general borrowing. Special funds account for Federal receipts earmarked for specific purposes, other than carrying out a cycle of operations. Public enterprise (revolving) funds finance a cycle of operations in which expenditures generate receipts primarily from the public. Intragovernmental revolving and management funds facilitate financing operations within and between Government agencies. Trust funds are established to account for receipts which are held in a fiduciary capacity by the Government for use in carrying out specific purposes and programs. Within the category of trust funds there is a special subcategory of trust revolving funds which carry on a cycle of business-type operations. BUDGET AUTHORITY AND OBLIGATIONS Budget authority.-Government agencies are permitted to enter into obligations, requiring either immediate or future payment of money, only when they have been granted authority to do so by law. The amounts thus authorized by Congress are called budget authority. Such authority is related to the obligations expected to be incurred during the year for most accounts. In some cases, especially construction, research, and procurement, budget authority is requested and granted to finance the full cost of each project at the time it is started. Budget authority is divided administratively between new obligational authority (NOA), which pertains to the expenditure account, and loan authority (LA), which pertains to the loan account (see pp. 48 and 49 for the distinction between the loan and expenditure accounts). Budget authority (both NOA and LA) usually takes the form of appropriations which permit obligations to be incurred and payments to be made. Some is in the form of contract authorizations which permit obligations, but require an appropriation "to liquidate" in order to permit payment of the obligations. When budget authority (NOA or 192 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY AGENCY 193 LA) is made available by Congress for a specific period of time, any part which is not used for obligations during that period expires, and thus cannot be used later. However, reappropriations and reauthorizations are congressional actions to continue availability of unused balances which would otherwise expire. There are also authorizations to spend debt receipts; such budget authority permits the use of borrowed money to incur obligations and make payments. Where such authority pertains to use of Treasury borrowing, it is an authorization to spend from public debt receipts; authority to borrow directly from private enterprise or from a trust fund is called an authorization to spend from agency debt receipts. Most authority to obligate funds is granted year by year (current authorizations). Under certain laws, some budget authority in Federal funds and most budget authority in the trust funds becomes available from time to time without further action by Congress (permanent authorizations). The amount of budget authority is usually named specifically in the act of Congress which makes it available (definite authorizations). In a few cases the amount is left indefinite to be determined by subsequent circumstances (indefinite authorizations); an example is the appropriation for interest on the public debt. Most appropriations for current operations are made available for obligation only within the year (1-year appropriations). Some are for a specified longer period (multiple-year appropriations). Some, including most of those for construction, some for research, and nearly all trust fund appropriations are made available by Congress until expended (no-year appropriations), and remain available for obligation until the objectives have been completed. Obligations incurred.- Following the enactment of NOA or LA, obligations are incurred by Government agencies. Such obligations include the currently accruing liabilities for salaries and wages, certain contractual services, and interest; entering into contracts for equipment, construction, and land; entering into contracts to make loans; and other commitments requiring the payment of money. Obligations incurred, net.-Obligations incurred are summarized in Part 2 on a net basis; that is, total obligations incurred less recoveries of prior obligations, receipts of revolving and management funds, and reimbursements to appropriations. 300-000 0-'68---13 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 194 THE BUDGET FOR FISCAL YEAR 1 9 6 9 OUTLAYS AND BALANCES Outlays.-Obligations generally are liquidated by the issuance of checks or the disbursement of cash. In some cases, in lieu of using checks, obligations are liquidated by the maturing of interest coupons in the case of some bonds, or by the issuance of bonds or notes (or increases in the redemption value of bonds outstanding). Retirement of debt and purchase of the Government's own securities are not counted as outlays (or as obligations incurred). Outlays during any fiscal year may be payments of obligations incurred in prior years or in the same year. Such outl1:J,ys therefore flow in part from balances of prior year budget authority and in part from authority provided for the year in which the money is spent. For three types of funds-public enterprise, intragovernmental, and trust revolving funds-outlays are stated net of receipts. Some incidental sums received are accounted for as reimbursements to appropriations, and netted against outlays. Moneys received from the issuance of debt instruments or the sale of the Government's own securities are not counted as receipts or netted against outlays. Budget outlays in the loan account, net of writeoffs and after offsets for repayments, are defined as net lending. All remaining budget outlays, which relate to the expenditure account, are called expenditures. Balances.- Not all of the obligational authority enacted for a fiscal year is paid out in the same year. In the case of salaries and wages, only 1 to 3 weeks elapse between the time of obligation and the time of payment. On the other hand, in the case of major procurement and construction, up to several years may elapse. Amounts which have been obligated are always carried forward until the subsequent payment of such obligations is made. In addition to the obligated balances, unobligated balances may also be carried forward in multiple-year or no-year accounts which are still available for obligation. Therefore, a change in the amount of budget authority for a given year does not necessarily change either the obligations incurred or the budget outlays in that same year by an equal amount. A change in budget authority in any one year may have an effect on obligations for 2 or more years, and may affect budget outlays for even a longer period. SUPPLEMENTAL ESTIMATES FOR 1968 AND 1969 Data for 1968.- Congress has already acted on appropriations and other budget authority for fiscal year 1968, but additional supplemental amounts are estimated to be required in certain cases. Where the word "enacted" is used in the budget in reference to 1968, as in Table 5, the amounts represent budget authority already voted by Congress, unless otherwise indicated. These include amounts likely https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FEDERAL PROGRAM BY AGENCY 195 to be available in the case of indefinite appropriations. Where the word "estimate" is used, the amounts include needed supplementals as well as budget authority which has been enacted. Certain standard footnotes are used in the following Table 14 to distinguish the status of proposed items for 1968 in this part of the budget. NOA and LA are separately identified for each supplemental item. Expenditures and net lending are shown separately for each supplemental item except those for military and civilian (including wage board) pay increases. Pay increase expenditures are identified in a memorandum entry pertaining to the agency totals, but are merged with expenditures from amounts already enacted in the individual lines. Data for 1969.-This budget is complete as to the estimates for 1969. The Appendix generally includes the proposed appropriation language for the various items identified in the budget. However, in some instances-mainly in cases of proposed new legislationestimates are included in the budget, but formal transmittal of the proposed text of the appropriation language (or other proposal) will be made separately. In certain tables, these items for separate transmittal and related expenditures (or net lending) are identified in separate columns, or by special footnotes, as in the following table. Where there is no separate identification, the estimate for 1969 includes both the amounts proposed herein and the axnounts proposed for separate transmittal. Special allowances.-Lump-sum allowances are included in the totals of the Budget Summary (Table 1) to cover possible additional supplemental proposals which may be required for 1968 and 1969. The need for such supplementals may arise from requirements not now foreseen for existing programs, or from the enactment of legislation not specifically provided for in the budgets of the agencies concerned. A lump-sum allowance is also included to cover the estimated cost of statutory pay increases to become effective in July 1968 under provisions of Section 212 of Public Law 90-206. These increases cannot be reflected in the various account schedules since the applicable rates have not been determined. In establishing these rates, the law requires that consideration be given to the Bureau of Labor Statistics survey of compensation practices in private enterprise m 1967, the results of which are not yet available. SPECIAL DEDUCTIONS Special deductions are made from agency and functional totals, as explained on pages 49 and 50, for interfund and intragovernmental receipts, and for proprietary receipts from the public. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars) Thi■ priation process occasionally i1 in the form of a limitation on the use of a trust fund or other fund. or an appropriation to liquidate contract authoriZJL· tions: such items which do not involve NOA or LA are also included here 1n parentheses, but not added into tbe totals. NOA and LA items are current authorizations except where otherwise indicated. Smaller trust funds are grouped. Types of funds are explained on _page 192: the deduct entries at the end of each chapter of this table are explained on pages 49 and 5 O. tabulation 1how1, for each appropriation and fund account. information on new obligational authority (NOA), loan authority (LA), expenditures (Exp.), and net lending ( NL) Explanatory sentences relate primarily to NOA or LA, and usually to increases or decreases for 1969. Functional code numbers are cron references to the lines in table 13 (pp. 174-189) where the figures are summarized. The N.OA in this tabulation takes account of certain transfer■ between appropriation,. Congressional action in the appro· Account and functional code 1967 1968 1969 enacted estimate estimate 1 1ncrease or I decrease ( - ) Explanation LEGISLATIVE BRANCH Federal Funds SENATE General and apecial fund ■ , NOA 3,299 Exp. 3,290 Mileage of President of the Senate NOA and of Senators ___________ 90I Exp. 50 Compensation of the Vice President and Senators _________ 90I 58 Expense allowances of the Vice NOA President and majority and Exp. minority leaders ___________ 901 16 NOA 26,170 Exp. 24,607 NOA 327 Exp. 316 Salaries, officers and employees 901 Office of the Legislative Counsel of the Senate _____________ 901 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3,299 DJ 3,303 3 58 58 ------------ 16 16 ------------ 16 29, 73Z } D995 328 DII 31,180 453 342 3 (For the Legislative Branch, explanations are shown only for those items for which supporting data submitted to the Bureau of the Budget indicate the reason for a change from the appropriation for the current fiacal year.) Contingent expenses of the Senate: Senate policy committees ___ 901 NOA 420 Exp. 282 Automobiles and maintenance NOA 901 Exp. 45 31 Inquiries and investigations_901 NOA 5,568 Exp. 5,473 Folding documents ________ 901 NOA 42 Mail transportation _______ 901 } 440 4 45 } 49 3 DJ 42 Furniture ________________ 901 NOA From 1967 NOA ___________ Exp. From 1966 NOA ___________ Exp. Exp. 423 D JJ 31 31 20 15 ------------ 17 14 Miscellaneous items _______ 901 NOA 3,916 ~ t;,J 5,623 D 175 5,857 59 so 44 -7 l'%j t;,J i::, t;,J ::c DJ } ~ "d ::c 41 NOA Exp. 8 0 17 4,088 DJS 17 ------------ 4,164 38 0 ::c ~ l:,:j >-<l Exp. 3,654 Postage stamps ___________ 901 NOA Exp. 91 87 100 109 9 Stationery (revolving fund)_901 NOA Exp. 316 290 316 316 ------------ Communications __________ 901 NOA Exp. 15 13 15 15 ------------ Senate restaurant fund _____ 901 Exp. -36 > 0 t;,J z 0 >-<l D Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ,..... eo ~ Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I! 1968 1969 estimate estimate 1 ncrcase or I 1 decrease ( -) LEGISLATIVE BRANCH-Continued F ederal Funds-Continued SENATE-Continued G eneral and special funda-Continued Contingent expenses of the Senate-Con. Recording studio revolving fund Exp. 901 Total, Senate ______________ NOA Exp. -113 40,330 45,376 45,941 565 38,060 43,200 43,600 400 14,161 14,161 --------· --- HOUSE OF REPRESENTATIVES NOA 14,149 Exp. 14,093 Mileage of Members and expense NOA allowance of the Speaker_ __ 901 Exp. zoo zoo NOA IZ,147 IZ,774 Exp. 11,531 NOA 35,500 Exp. 34,797 NOA Z,185 Ex. p 118 Compensation of Members ___ 901 Salaries, officers and employees 901 Members' clerk hire _________ 901 Contingent expenses of the House: Furniture ________________ 901 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 196 zoo ------------ } 14,473 l,18Z n517 35,500 DI,Zl8 } 38,14Z l,4Z4 zso zso ------------ Explanation Miscellaneous items ________ 901 NOA Exp. 6,73S 6,089 6,900 Reporting hearings ________ 901 NOA Exp. ZZ3 157 ZZ3 Special and select commit- NOA tees ___________________ 901 Exp. 4,690 4,690 D 132 Office of the Coordinator of NOA Information ____________ 901 Exp. 145 138 S,966 Z,066 ZZ3 ------------ } 4,S66 44 4,248 8 Telegraph and telephone ___ 901 35 ------------- -35 NOA Exp. 3,330 2,884 4,032 NOA Exp. 1,570 1,488 l,30S NOA Exp. ZZ9 226 ZZ9 Revision of laws ___________ 901 NOA Exp. ZS 30 ZS Z9 1 Speaker's automobile ______ 901 NOA Exp. 13 12 13 14 1 Majority leader's automobile NOA 901 Exp. 13 12 13 14 1 Minority leader's automobile NOA 901 Exp. 13 13 13 14 Stationery (revolving fund) _901 Postage stamps ___________ 901 New edition of the United NOA States Code ____________ 901 Exp. ------------ t,J >rj t,J t::I t,J ::,:; l,30S ------------ ~ "d 320 91 ::,:; 0 0 ::,:; > ~ l:d >1 > 0 t,J z 0 >1 1 150 ------------- ------------- -----------44 D Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4,032 p:1 ..... ~ ~ Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate 1 1 ncrease or I decrease ( - ) LEGISLATIVE BRANCH-Continued Federal Funds-Continued I HOUSE OF REPRESENTATIVES-Con. General and apecial funda-Continucd Contingent expenses of the House-Con. New edition of the District of NOA Columbia Code _________ 901 Exp. 100 ------------- Payments to widows and heirs NOA of deceased Members of Con- Exp. gress ___________________ 901 30 House of Representatives res- Exp. taurant fund ____________ 901 -107 Recording studio revolving fund Exp. 901 -30 reimbursements Exp. 901 -14 Advances and Total, House of Representa- NOA Exp. tives. 7S 7S 50 30 30 ------------- - - - - - - - - - --- -30 81,452 82,266 87,087 4,821 76,006 79,860 86,517 6,657 13 13 13 JOINT ITEMS Statements of appropriations __ 901 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. 13 ------------ Explanation ~ 0 0 Joint Committee on Reduction of NOA Nonessential Federal Expenditures _____________________ 901 Exp. Joint Economic Committee ___ 901 NOA 38 DJ 41 2 402 12 417 3 367 DJ0 381 4 190 D6 198 2 480 DJ6 532 36 38 37 383 0 Exp. 319 Joint Committee on Atomic En- NOA ergy _______ ~- ____________ 901 Exp. 367 297 Joint Committee on Printing __ 901 NOA 161 Exp. 149 Committee on Internal NOA Revenue Taxation. ________ 901 Exp. 471 Joint 8 ~ t_'i ::0 Joint Committee on Immigration NOA and Naturalization Policy __ 901 Exp. 25 -------------- ------------ Attending physician's office ___ 901 NOA Exp. 30 NOA Exp. 118 Education of pages __________ 901 D 87 03 91 I 0 0 ::0 > 78 ~ 12 130 56 ------------74 to ~ > 0 t"1 z0 27 97 103 6 880 951 71 94 95 I ~ 105 880 NOA Exp. 607 NOA Exp. 95 93 Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis > t< "d 444 85 Capitol Police Board _______ 901 t_'i ~ t_'i ::0 Joint Committee on Defense Pro- NOA duction __________________ 901 Exp. Capitol Police: General expenses __________ 901 >tj ~ 0 ...... Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate Increase or I (- ) Idecrease Explanation LEGISLATIVE BRANCH-Continued Federal Funds-Continued '"3 ~ trJ JOINT ITEMS-Continued to G eneral and apecial funda-Continued Official mail costs ____________ 901 NOA Exp. d ' 7,248 8, S34 9,787 l,ZS3 9,913 11,360 IZ, 66S l,30S 9,433 10,248 12,200 1,952 \:, C':l trJ 7,248 '"3 Total, joint items ___________ NOA Exp. ~ 0 ;:ti ARCHITECT OF THE CAPITOL Salaries ____________________ 901 l"%j .... [fl NOA Exp. Contingent expenses _________ 901 Capitol buildings and grounds: Capitol buildings __________ 901 Capitol grounds ___________ 901 Reappropriation ____________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 660 678 638 DZ6 702 Cl } 744 39 746 44 NOA Exp. so so so 19 48 50 NOA 1,887 1,677 Exp. 1,817 NOA 703 Increase covers 2 additional positions and salary increases. c.l > t< ~ trJ ------------ This item is for unforeseen expenses. 2 > ;:ti ,... <C NOA Ex.· p ----------662 I Z,010 301 1,892 2,011 119 7Zl 767 -9 773 769 -4 c3z } 3S } czo Increase mainly for a nonrecurring item for construction of room s in light shaft, Senate Wing of Capitol. Decrease due to completion of a nonrecurring item for addition to water supply system for the Capitol. 0, <C Extension of the CapitoL ____ 90 I NOA ----------Exp. 212 Senate office buildings _______ 901 Senate garage _______________ 901 House office buildings ________ 901 135 ------------239 ------------3,436 NOA 2,586 Exp. 2,677 NOA 59 Exp. 59 c2 62 NOA 4,079 4,481 Exp. 3,929 css 3,496 59 Reappropriation _____________ NOA Exp. Expansion of facilities, Capitol Power Plant: Liquidation of contract authorization __________________ 9()1 Exp. 2,788 ZS 2,686 } -592 3,210 -286 62 1 Estimate provides for maintenance, repairs, personnel, and all other necessary expenses. ------------ 4,846 241 4,852 217 ~to:! to:! t::, to:! ------------(6,975) 3,583 ~ -783 ~ l::tl (6,975) -2,274 Z,927 65 2,929 72 0 0 l::tl Increase mainly to cover higher electrical energy and fuel coats. ~ tJ:I ><I > 0 ----------284 (115) 864 ------------322 (-115) -542 4 15 ------------- -15 Additional office building for the Exp. U.S. Senate_______________ 901 9 21 ------------- -21 Propoaed for separate transmittal, wage-board supplemental. D Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase results from wage-board and Claasification Act changes. l::tl Changes and improvements, Cap. Exp. itol Power Plant __________ 901 C Decrease due to completion of nonrecurring items for installation of 3 new paasenger elevators and remodeling work in New Senate Office Building. l,j -------z~~:_} 2,857 2,902 62 C124 4,635 Acquisition of property, construetion, and equipment, additional House Office Building: 783 Contract authorization (perma- NOA ----------nent, indefinite) _________ 901 Liquidation of contract author----------- ------------5,857 Exp. 6,941 ization. Capitol Power Plant_ _______ 90 I NOA } -135 -239 to:! ~ Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate ea ti.mate 1 Explanation 1ncrease or I decrease ( - ) LEGISLATIVE BRANCH-Continued F,ederal Funds-Continued ARCHITECT OF THE CAPITOL-Con. C eneral and apecial funda-Continued Furniture and furnishings, addi- Exp. tional Senate Office Building_90 I Planning for restoration of Old Exp. Senate Chamber and Old Supreme Court Chamber in the Capitol__ _________________ 901 Library building and grounds: Structural and mechanical care NOA 901 Reappropriation ___________ Furniture and furnishings __ 901 ----------- 1Z7 1,458 NOA Exp. 3Z5 264 Total, Architect of the Capitol NOA Exp. 16 ------------- -16 I ------------- -I I, 412 NOA Exp. Library of Confess, James Mad- NOA ison Memoria Building ____ 901 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24 ----------336 14, 701 22,017 985 -34 2,286 2,172 -114 350 410 382 375 3Z -35 164 2, 8CNI 2,800 2, 8CNI 2,636 16,549 24,338 18,475 23,881 1, 9Z6 -457 -------- c99J_} ------------- Decrease due to completion of nonrecurring item for modemization of boobtack elevators, Annex. ... co c:r, co BOTANIC GARDEN Salaries and expenses ________ 901 NOA 513 584 C}3 Exp. 502 605 Relocation of greenhouses ____ 901 Exp. Total, Botanic Garden______ NOA Exp. 513 503 Salaries and expenses ________ 704 NOA 13,524 } 568 -Z9 570 -35 2 ------------- ------------- Decrease due to completion of a nonrecurring item for repairs, replacements, and improvements to electrical systems, main conservatory, office building, and Bartholdi display fountain. ------------ 597 568 605 570 -Z9 -35 17,545 1,231 17,383 l.5(0 lncrea,e due to inclusion of funding for activities previously carried under Preservation of motion pictures and Books for the general collection. Also provides for increased activity in organization of collections, and in reader and reference services. Z,978 445 Provides for increased workload in most activities of the office. 2,892 353 3,675 326 3,652 278 7,338 794 7,176 961 175 138 LIBRARY OF CONGRESS Exp. 12,898 Copyright Office: Salaries and NOA expenses __________________ 704 Exp. Z,3Z9 Legislative Reference Service: NOA Salaries and expenses ______ 704 Exp. 3,010 15,892 cz5 n397 15,873 } Z,45Z 0 81 2,539 } 3,239 nno 3,374 } 4,598 6,423 D lZl 6,215 l 704 Exp. 800 804 590 627 765 765 Books for the law library _____ 704 NOA Exp. 125 130 1Z5 145 1Z5 125 Books for the blind and physically NOA handicapped: Salaries and expenses ___________________ 704 Exp. 4,603 6,085 6,668 568 6,508 -320 Distribution of catalog cards: NOA Salaries and expenses ______ 704 Exp. Books for the general collection___ NOA 2,286 2,943 4,649 3,090 l 6,828 DJS Proposed for separate transmittal. wage-board supplemental. D Proposed for separate transmittal. civilian pay act supplemental. C https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ------------20 Continues to provide research and analysis, preparation of indexes and digests, and other reader and reference services. Continued increase in sales activity is expected. Costs are generally recovered from sales income. Covers increase in purchase of books. Objective will be to continue to improve the Library's coverage of law materials. Includes funds for a national program to provide reading material for the blind and the physically handicapped. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1 ncrease or I decrease ( - ) LEGISLATIVE BRANCH-Continued Federal Funds-Continued LIBRARY OF CONGRESS-Continued General and apecial funda-Continued Organizing and microfilming the NOA papers of the Presidents: Sala- Exp. ries and expenses __________ 704 Preservation of motion pictures: NOA Salaries and expenses ______ 704 Exp. Collection and distribution of NOA library materials (special foreign currency program) ________ 704 Exp. 113 115 so 49 Z,Z68 1,452 113 ------------144 ------------- ------------- ------------42 ------------Z,ZZ3 D6 2,299 Indexing and microfilming the Exp. Russian Orthodox Greek Catholie Church records in Alaska_ 704 ----------- 10 Oliver Wendell Holmes devise fund NOA (permanent, indefinite, special Exp. fund) ____________________ 704 7 19 7 21 } -113 -144 ------------ (Activities previously carried under this title have been tranS• -42 ferred to Salaries and expenses, Library of Congress.) Z,686 457 2,686 387 ------------- Total, Library of Congress ___ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. -430 ------------- Program utilizes excess foreign currencies to acquire and distribute foreign library material. -10 7 ------------ Activity continues at the same level. 3 24 lntraaovernmental funds: Advances and reimbursements_704 Exp. Activities previously carried under this title have been trans ferred to Salaries and expenses, Library of Congress. ------------- ------------ 31,478 37,904 41,787 3,883 27,955 38,117 41,211 3,094 GOVERNMENT PRINTING OFFICE General and special fund ■ : Printing and binding _________ 901 NOA Exp. Zl,500 20,699 26,700 26,695 Office of Superintendent of Docu- NOA ments: Salaries and expenses. 910 Exp. 6,425 7,359 DJ45 7,635 Selection of site and general plans NOA and designs of buildings ____ 91 0 Exp. lntragovernrnental 6,023 } ----------- -------------337 ------------- 31,ZOO 31,000 4,500 4,305 Appropriation covers all printing, binding, and distribution for the Congress, or as otherwise authorized by law. 8,112 608 8,162 527 Estimate covers increased costs of sa lea functions, depository library distribution, distribution for other agencies and Congress, and cataloging. 2,500 2,300 Z,500 2,300 Provides for acquisition of site and development of plans for a new location in the Washington, D.C., metropolitan area. fund■ 1 Government Printing Office re- NOA volving fund ______________ 910 Exp. 15,000 ------------815 -71 ------------------------10,635 -10,564 ($15 million of new capital in 1967 tended to offset normally negative expenditure balances. 1969 estimate is a return to a more normal financial situation.) Total, Government Printing NOA Office. Exp. 42,925 27,200 34,204 34,259 41,812 30,827 7,608 -3,432 GENERAL ACCOUNTING OFFICE General and special funds, Salaries and expenses ________ 904 NOA Exp. 49,340 48,539 54,353 54,077 57,742 57,605 3,389 3,528 Subtotal, Federal funds_____ NOA Exp. 270,652 249,713 282,609 284,704 306,077 296,411 23,468 11.707 Provides increases for full year cost of new positions, civilian pay costs, and some extended alldit coverage. Total Federal funds are distributed as follows: 1968 NOA Enacted _____ Transmitted_ ( C) ________ (D) ________ C D Proposed for separate transmittal, wage-board supplemental. Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 278,241 1969 Exp. 280,406 ----------------317 296 4,051 NOA --------306,077 --------4,002 --------- Exp. 296,341 21 49 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I I 1967 enacted 1968 1969 estimate estimate 1 Explanation 1ncrease or I decrease ( - ) LEGISLATIVE BRANCH-Continued Trust Funds LIBRARY OF CONGRESS Gih and trust fund accounts, non- NOA revolving (permanent) ______ .704 Exp. Library of Congress trust fund principal accounts (permanent) __ .704 NOA Total, Library of Congress. __ NOA Z,720 2,302 Z,739 2,321 2,739 ------------ Income from investments and other gifts and receipts are devoted 2,315 to advancing work of the Library. -6 108 ------------- ------------- ------------ Represents cash gifts deposited with the Treasurer of the United States for specific purposes. Exp. Z,828 2,302 Z,739 2,321 I 5 5 2,739 -----------2,315 -6 GENERAL ACCOUNTING OFFICE Proceeds from estates of American NOA citizens who die abroad (perma- Exp. nent) _____________________ . 904 Subtotal, trust funds. _______ ----------- NOA Exp. 5 ------------ Estates are held in trust for legal claimants. 5 ------------ Z,830 2,302 2,744 2,326 2,744 -----------2,320 -6 -895 -454 -454 Adjustments lnterfund and intragovemmental NOA transactions. ______________ . 900 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } ------------ t..:i 0 00 Applicable receipts from the public NOA -8,929 -9,779 -3,707 -3,707 700 Exp. 900 NOA Exp. } -7,407 } -3,722 NOA 261,458 Z7Z,Z63 294,881 ZZ,618 Exp. 239,991 273,940 284,791 10,851 Total, Legislative Branch ____ -850 -----------Totals for the Legislative Branch are distributed as follows: 1969 1968 Enacted _____ Transmitted_ ( C ) ________ (D ) ________ NOA 267,895 --------317 4,051 Exp. 269,642 --------- 296 4,002 NOA Exp. --------- -------294,881 --------- --------- 284,721 21 49 THE JUDICIARY Federal Funds SUPREME COURT OF THE UNITED STATES General and special funds: NOA Z,000 Z,03Z nz5 z,zos 151 Exp. 1,964 2,044 2,202 158 Printing and binding Supreme NOA Court reports _____________ 902 Exp. 138 155 155 132 157 155 -2 NOA lZO 133 lZO 144 Exp. 115 136 Z4 21 Increase covers an additional amount for transcribing tapes of Supreme Court proceedings and for supplies and materials. NOA 3Z4 3Z8 c7 384 49 Exp. 316 339 374 35 Estimate is primarily for converting an elevator to automatic operation and an increase in the Maintenance, air-conditioning system allotment. Salaries ____________________ 902 Miscellaneous expenses __ _____ 902 Care of building and grounds_902 C Proposed for lt>parate transmittal. wage-board supplemental. D Proposed for separate tram,mittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } Increase is for 9 additional positions in the offices of the Justices. Estimate covers cost of printing and binding advance opinions, preliminary prints, and reports of the Court. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I I 1967 enacted 1968 1969 estimate estimate Explanation 1ncrease or I 1 decrease ( -) THE JUDICIARY-Continued Federal Funds-Continued SUPREME COURT OF THE UNITED ST ATES-Continued General and special funds-Continued Automobile for the Chief Justice NOA 902 Exp. 9 9 9 9 10 IO 1 Estimate provides for the purchase, exchange or lease, driving, maintenance, and operation of an automobile for the Chief I Justice. Books for the ·supreme Court_ 902 NOA Exp. 38 35 40 41 Total, Supreme Court of the NOA United States. Exp. 2,629 2,589 2,715 471 483 2,705 40 ------------ Estimate covers books and periodicals. -1 40 I 2,941 2,917 226 212 sos 15 COURT OF CUSTOMS AND PATENT APPEALS Salaries and expenses ________ 902 NOA n7 Exp. 432 480 Salaries and expenses ________ 902 NOA I,265 1,480 1,246 I, 501 } 504 24 1,647 129 1,638 137 Estimate provides fo r salary increase, within-grade salary advancements, cost of an extra-compensable day, and an increase in the volume and cost of printing required by the Court. CUSTOMS COURT https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. n3g } Estimate provides fo r salary increase, 3 additional positions, within-grade salary advancements, cost of an extra-compensable day, and increas ed miscellaneous expenses of the Court. ... co co 0, COURT OF CLAIMS Salaries and expenses ________ 902 NOA 1,440 Exp. 1,413 n45 1,536 15,857 1,500 1,595 50 1,591 55 16,300 16,795 n10 16,256 485 16,755 499 40,490 44,460 3,065 } Provision has been made for salary increase, within-grade salary advancements, and the cost of an extra-compensable day. COURTS OF APPEALS, DISTRICT COURTS, AND OTHER JUDICIAL SERVICES Salaries of judges ____________ 902 NOA "3 Exp. 15,584 Salaries of supporting personnel NOA 902 Exp. 38,290 37,604 n905 41,244 44,330 3,_086 Fees and expenses of court-ap. NOA pointed counsel__ __________ 902 Exp. 3,000 3,150 3,150 2,299 3,150 3,150 ------------ Fees of jurors and commissioners NOA 902 Exp. 7,700 7,461 7,800 7,900 100 7,783 7,892 109 Travel and miscellaneous expenses NOA 902 Exp. 6,000 6,113 6,488 375 5,394 6,065 6,429 364 Administrative Office of the U.S. NOA Courts ___________________ 902 Exp. I, 950 Z,074 Z,321 1,812 n35 2,094 ZIZ ------------ Estimate provides for an increase in the number of senior judges and a reduction in judgeship vacancies. ::it'j:: "'.I t'j Provisions have been made for 183 additional positions for the courts of appeals and district courts, salary increase, withingrade salary advancements, and the cost of an extra-compensable day. Estimate is for representation of criminal defendants who are financially unable to provide for an adequate defense. To cover an anticipated increase in petit jury trials by reason of the activities of new district judges. i:::, t'j !;:'Cl ~ "d !;:'Cl 0 0 !;:'Cl ~ td Salaries of referees (special fund) NOA 902 Exp. } 2,306 212 74 86 4,318 4,514 4,588 4,308 4,497 4,583 To cover expenses relating to new personnel and increases in postage, copywork, and lawbooks. Includes funds to institute a program for compiling data on Federal offenders after discharge and for coping with an increased workload. >-< > 0 t'j z C >-< Provisions have been made for 2 additional full-time referees, conversion of 2 referees from part- to full-time status, and some salary adjustments. D Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~ I-' I-' Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 estimate • I 1969 estimate 1 Explanation 1ncrease or I decrease ( -) THE JUDICIARY-Continued Federal Funds-Continued COURTS OF APPEALS, DISTRICT COURTS, AND OTHER JUDICIAL SERVICES-Continued General and special funds-Continued Expenses of referees (special fund) NOA 902 NOA Exp. Total, courts of appeals, dis- NOA trict courts, and other ju- Exp. dicial services. Subtotal, Federal funds _____ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8,617 1,197 7,360 8,471 I.Ill Increase provides for 97 additional full-time clerical positions fo r referees' offices, conversion of 15 part-time clerks to full-tim e status, and conversion of 43 temporary clerks to permanent status. Provisions also have been made for salary increase, within-grade promotions, an extra-compensable day, and increased postage. A83 AS38 A500 455 425 To implement the provision of the act of Dec. 20, 1967, PubliC Law 90-219, which established the center. 7,360 DfiO Exp. F e:leral judicial center _______ 902 6,930 NOA Exp. 6,957 --------------------- 84,046 81,419 89,851 87,098 A75 } 88,894 94,857 88,524 94,416 95,162 94,746 101,545 IOI ,066 5,963 5,892 6,383 ... "'a, Total Federal funds are distributed as follows: 6,320 1968 Enacted _____ Transmitted_ ( A) ________ (C ) ________ ( D) -------- Erp. 93,947 93,598 ----------------83 75 7 1,125 "' /969 NOA 7 1,066 NOA Erp. --------------101,007 100,507 538 500 --------- -------59 --------- Trust Funds 1,012 540 1,065 570 1,095 Applicable receipts from the public NOA 900 Exp. -68 -8/ -8/ Total, The Judiciary________ NOA Exp. 90,795 87,570 96,146 95,235 102,559 IOI ,585 Judicial survivors' annuity fund NOA (permanent) ________________ 654 Exp. 600 30 30 Pays annuities to dependents of deceased judges, refunds to former judges, and claims of survivors in certain cases. Adjustments 6,413 6,350 Totals for The Judiciary are distributed as follows: 1968 NOA 94,931 Enacted _____ Transmitted_ --------( A) ________ 83 (C ) ________ 7 (D ) ________ 1,125 1969 NOA 94;087 --------!02,021 --------75 538 7 --------1,066 --------Exp. Exp. IOI ,026 500 59 EXECUTIVE OFFICE OF THE PRESIDENT F,ederal Funds COMPENSATION OF THE PRESIDENT G eneral and special funds: Compensation of the President_ 903 NOA Exp. 150 150 150 150 150 150 2,955 2,779 3,009 2,915 3,229 3,224 ----------------------- The President receives a salary of $100 thousand and an expense allowance of $50 thousand annually. THE WHITE HOUSE OFFICE Salaries and expenses ________ 903 NOA Exp. 220 309 A Prop 01ed for separate tranamittal under existing legislation, other than pay 1upplementaJ. C Proposed for separate transmittal, wage-board supplemental. D Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This office provides the President with staff assistance and admin istrative services. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate or I decrease ( - ) I.Increase Explanation EXECUTIVE OFFICE OF THE PRESIDENT-Continued ·------- Federal Funds-Continued SPECIAL PROJECTS General and special funds-Continued Special projects _____________ 903 NOA Exp. 1,500 1,500 742 1,350 1,500 ------------ The President uses this appropriation for staff assistance on 692 708 740 32 710 702 740 38 1,500 150 special problems. EXECUTIVE MANSION Operating expenses __________ 903 NOA Exp. Extraordinary expenses ___ .. __ 903 NOA Exp. Total, Executive Mansion ___ NOA Exp. ----------- ---- ---- ------------- - --- - - - - - - - - - 83 83 83 83 692 708 823 115 710 702 823 121 These funds provide for care, maintenance, and operation of the Executive Mansion. These additional funds will provide for extraordinary refurbis hing of the Executive Mansion. BUREAU OF THE BUDGET .... Salaries and expenses ________ 903 NOA Exp. 0, C0 8,913 9,500 10,310 810 8,721 9,352 10,297 945 lntragovernrnental funds: Advances and reimbursements_903 Exp, 342 ------------- ------------- ------------ Total, Bureau of the Budget_ NOA 8,913 9,500 10,310 810 Exp. 9,063 9,352 10,297 945 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Bureau assists the President in the discharge of his budgetary, management, and other executive responsibilities. Increase includes 9 additional positions. C0 COUNCIL OF ECONOMIC ADVISERS General and special funds: Salaries and expenses ________ 903 NOA Exp. lntragovernmental funds: 790 742 I 858 886 28 861 882 21 Advances and reimbursements_ 903 Exp. -IO Total. Council of Economic NOA Advisers. Exp. 790 858 886 28 731 862 882 20 1 ------------- The Council advises the President on economic policies and programs. -1 NATIONAL AERONAUTICS AND SPACE COUNCIL General and special funds: Salaries and expenses _______ 903 NOA 525 524 524 516 510 520 Salaries and expenses ________ 903 NOA 1,100 1,300 1,375 Exp. 412 1,655 Exp. -----------IO The Council advises and assists the President on policies, plans, and programs in aeronautical and space sciences. NATIONAL COUNCIL ON MARINE RESOURCES AND ENGINEERING DEVELOPMENT, AND COMMISSION ON MARINE SCIENCE, ENGlNEERING, AND RESOURCES lntragovernmental funds: Advances and reimbursements_903 Exp. Total, National Council on NOA Marine Resources and En- Exp. ginee ring Development, and Commission on Marine Science, Engineering, and Resources. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -1 ------------- 1,662 75 7 ------------- ------------ 1,100 1,300 1,375 75 411 1,655 1,662 7 Increase primarily reflects additional planning for ocean exploration. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I I 967 enacted I 1968 1969 estimate estimate 1 Explanation 1 ncrease or I decrease ( - ) EXECUTIVE OFFICE OF THE PRESIDENT-Continued ----- Federal Funds-Continued NATIONAL SECURITY COUNCIL General and special funds: Salaries anr expenses _________ 903 NOA Exp. 664 601 664 648 Salaries and expenses _________ 903 NOA 4,670 } Exp_ 4,827 4,700 DIS 4,873 Salaries and expenses, telecom- NOA munications ______________ 903 Exp. 1,582 1,945 D-JS } 1,407 1,971 Civil defense and defense mobili- NOA zation functions of Federal 'igencies __________________ 059 Exp. 4,000 3,000 0 102 3,287 664 ------------ The Council advises the President on national security matters. 650 2 OFFICE OF EMERGENCY PLANNING https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3,931 } 5,043 328 5,078 205 1,986 56 1,960 -11 3,135 33 3,009 -278 This Office advises and assists the President in planning, directing, and coordinating the nonmilitary defense program; in alleviating the effects of disasters; and in determining policy and goals relating to the stockpiling of strategic and critical materials. The Director of Telecommunications Management advises and assists the Pres ident in coordinating telecommunications activities. Covers emergency planning done by other agencies under direct guidance from 0 ffice of Emergency Planning. State and local preparedness and research and development: (Defense-related activities) _059 Exp. (Executive direction and man- Exp. agement) _____________ 903 Total, Office of Emergency NOA Planning. Exp. 406 56 332 3 10,252 10,628 9,747 10,466 26 ------------10,164 10,073 -306 -3 (Previously appropriated funds assist States to develop programs for emergency management of their resources.) 417 -393 Totals for the Office are distributed as follows: /968 Enacted _____ Transmitted. (D ) ________ NOA 9,645 --------102 1969 NOA Exp. 10,369 --------- 97 Exp. --------10,164 10,068 --------- 5 OFFICE OF SCIENCE AND TECHNOLOGY Salaries and expenses. _______ 903 NOA Exp. Energy study _______________ 903 NOA Exp. 1,200 l, 102 1,550 1,553 I ----------- ----------------------- ------------1,200 l, 102 Total, Office of Science and NOA Technology. Exp. 1,550 1,553 1,985 1,970 435 417 Increase primarily reflects emphasis on environmental quality and scientific and technical information. 500 350 500 350 OST will contract for a study of energy resources and policy. 2,485 2,320 935 767 PRESIDENT'S COMMISSION ON POSTAL ORGANIZATION Salaries and expenses ______ 903 NOA Exp. I ntragovernmental ----------- 1,000 ------------1,000 ------------- -1,000 -1,000 7 ------------- -7 1,000 ------------1,007 ------------- -1,000 -1,007 fund ■ : Advances and reimbursements.903 Exp. Total, President's Commission NOA on Postal Organization. Exp. 11 ----------- I -22 1------ -22-[ Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Commission was established by Executive Order 11341, dated Apr. 8, 1967, and will complete its work in 1968. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continuecl Account and Functional code 1967 enacted I 1968 1969 estimate ea ti mate 1 Explanation 1ncrease or I decrease ( - ) EXECUTIVE OFFICE OF THE PRESIDENT-Continued Federal Funds-Continu ed SPECIAL REPRESENTATIVE FOR TRADE NEGOTIATIONS General and special funds; Salaries and expenses ________ 903 NOA 566 Exp. 534 Total, Special Representative NOA for Trade Negotiations. Exp. 566 534 490 742 241 723 190 Increase is for a long-range study of. U.S. trade policy and a special study on the impact of foreign trade on U.S. employment. 501 742 241 Totals for this office are distributed as follows: 533 723 190 D 11 533 } 1969 1968 NOA Enacted _____ Transmitted_ (D) ________ 490 NOA Exp. 523 11 --------- 742 10 --------- --------- --------- Exp. ------- 722 I MISCELLANEOUS lntragovernmental funds: Advances and reimbursements: Inter-Agency Committee on Exp. Mexican-American Alfairs_903 -9 9 ------------- -9 (Conference on problems of Mexican-Americans was held on Nov. 26-28, 1967.) National Advisory Commission Exp. on Rural Poverty ________ 903 -164 162 ------------- -162 (The Commission submitted its final report and was terminated in December 1967.) President's Commission on Exp. Budget Concepts ________ 903 -8 8 ------------- -8 (The Commission completed a review of budgetary presentation and recommended changes to the President on Oct. 10, 1967 .) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis President's Committee on Equal Exp. Opportunity in Housing __ 903 -53 _____________ _____________ ____________ (This Committee, financed by contributions from participating President's Council on Youth Exp. Opportunity. ____ .. _____ 903 -57 White House Conference on Exp. Civil Rights .. ____ .. ____ 903 108 Miscellaneous expired accounts Exp. 903 agencies, assists in the implementation of Executive Order 11063 relating to equal opportunity in housing owned or assisted by the Federal Government.) (Activities are financed by participating agencies.) 28 ------------- -28 (Conference was held June 1 and 2, 1966.) 6 ------------- ------------- ------------ -207 Total, miscellaneous_ .. _.___ Exp. -178 Total, Executive Office of the NOA President. Exp. 29,307 31,011 32,852 1,841 27,767 31,910 32,824 914 207 Totals for the Executive Office of the President are distributed as follows: /968 NOA Enacted ______ Transmitted __ (D ) _________ /969 Exp. NOA Exp. 30,898 31,803 --------- -------32,852 32,818 -------- -------6 107 --------113 FUNDS APPROPRIATED TO THE PRESIDENT F ederal Funds ALASKA PROGRAMS G eneral and special funds: Mortgage indemnity and transitional grants: (Aids to private housing) •• 551 NOA Exp. (Other general government) Exp. 910 D Z,600 ------------- ------------- ------------ In 1967, matching grants were made to Alaska to retire or adjust 2,600 ------------- ------------- -----------mortgages or other liens on homes destroyed or severely damaged in the March 1964 earthquake. 1 ------------- ------------- ------------ Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate Increase or I ( -) Idecrease Explanation FUNDS APPROPRIATED TO THE PRESIDENT-Continued Federal Fund s-Continued APPALACHIAN REGIONAL DEVELOPMENT PROGRAMS General and apecia I funds-Continued Appalachian region al development NOA programs _____ ____________ 507 Exp. --------------------- 126,700 213,600 86,900 143,300 235,750 92,450 15,000 -15,000 Increase is primarily for a development highway system and demonstration health activities in the 13 Appalachian States. DISAST ER RELIEF Disaster relief ___ _-- _____ -- __ 659 NOA Total, Federa1 funds ________ 24,550 20,000 A10,000 39,427 A6,()(){) } Exp. 53,472 NOA Exp. 24,550 30,000 53,472 15,000 45,427 35,804 31,804 A 4,000 } -9,623 Supplemental in 1968 will finance eligible disaster relief work in States where Presidential declarations have been made. Fund are requested for additional disasters that may occur. -15,000 -9,623 Adjustments Applicable receipts from the public NOA 850 Exp. Total, disaste r relief ________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. } -12 ------------- ------------- -----------24,538 30,000 15,000 -15,000 53,460 45,427 35,804 -9,623 Totals for disaster relief are distributed as follows: /969 /968 NOA Enacted _____ Transmitted_ Exp. NOA Exp. 39,427 --------- ------20,000 31,804 15,000 ----------------( A) ________ 4,000 6,000 --------10,000 Federal Funds EMERGENCY FUND FOR THE PRESIDENT General and apecial funds: 1,000 254 1,046 1,000 1,000 -101,832 -3, 172 22,102 -2,641 146,072 -2,975 350 28 350 350 550 400 Investment in Inter-American De- NOA velopment Bank ___________ 152 Exp. 250,000 300,000 54,000 88,000 300,000 B205,900 120,000 Subscription to the International NOA Development Association ___ 152 Exp. 104,000 106,000 104,000 125,000 Emergency fund for the President NOA 903 Exp. 1,000 ------------46 This appropriation enables the President to provide for emergencies affecting the national interest, security, or defense. EXPANSION OF DEFENSE PRODUCTION Public enterprise funds: Revolving tund, Defense Produc- Exp. tion Act__ ________________ 059 NL 123,970 -334 ( Increase due to higher interest paid to the Treasury and to $58 million advance payment for copper production expansion.) EXPENSES OF MANAGEMENT IMPROVEMENT General and special funds: Expenses of management im- NOA provement_ _______________ 903 Exp. ------------150 This appropriation enables the President to improve management, organization, and operation of the executive branch. INTERNATIONAL FINANCIAL INSTITUTIONS 8 205,900 32,000 Funds will provide the 2d of 3 installment contributions to the Fund for Special Operations. Proposed legislation is for a 1st installment on a contribution of $411.8 million to callable capital. 136,000 240,000 -45,000 70,000 B 10,000 } Increase is for I st installment under proposed legislation to authorize the United States to contribute toward replenishment of Association resources. } APropoaed for separate transmittal under existing legislation. other than pay supplemental. B Proposed for separate transmittal under proposed legislation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)--Continued Account and functional code 1967 enacted I 1968 estimate 1969 estimate I Increase or decrease ( - ) I Explanation FUNDS APPROPRIATED TO THE PRESIDENT-Continued ------------- - - - - - - - - --·· Federal Funds-Continued INTERNATIONAL FINANCIAL INSTITUTIONS-Continued General and apecial fund-Continued Asian Development Bank ____ 152 NOA Exp. Total, international financial NOA institutions. Exp. Z0,000 Z0,000 Increase is for the 3d of 5 installment contributions to ordinary I0,000 -----------capital. ----------- ------------I0,000 I0,000 354,000 170,000 404,000 223,000 765,900 2!0,000 361,900 -13,000 Totals for international financial institutions are distributed as follows: 1969 1968 Enacted _____ Transmitted_ ( B) ________ NOA Exp. 404,000 ----------------- 223,000 ----------------- NOA Ex p, ------------320,000 200, 000 IO, 000 445,900 MILITARY ASSISTANCE Military assistance ___________ 057 NOA Exp. 727,975 903,018 380,000 550,000 Foreign military credit sales __ 057 NOA ----------- ------------- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. ----------- ------------- 420,000 519,000 40,000 -31 ,000 B}Z0,000 B6,000 120,000 6,000 F Increase will sustain a higher level of activity in 1969. Increase due to financing of this activity by annual appropriation instead of revolving fund. Public enterpriae funda: Foreign military sales fund ___ 057 NOA Exp. Subtotal, Federal funds_ _ ___ NOA Exp. 53,600 20,000 -------------Z0,000 Fund will be terminated on June 30, 1968. Activity will be fi. -30,374 ------------- ------------- -----------nanced in Foreign military credit sales appropriation. 781,575 400,000 540,000 140,000 872,644 550,000 525,000 -25,000 Total Federal funds are distributed as follows: Enacted _____ Transmitted_ ( B) -------- Trust Funds Advances, foreign military sales: Contract authorization (perma- NOA nent) _____________________ 057 Receipts to liquidate contract authorization. Exp. 1,479,471 1,350,000 1,320,000 -30,000 (1,078,035) 1,069,952 (1,150,000) 1,125,000 (1,400,000) 1,330,000 (250,000) 205,000 }-1,078,035 -1,/50,000 -/,400,000 -250,000 460,000 -140,000 1969 1968 NOA Exp. 400,000 ----------------- NOA Exp. 550,000 ----------------- 420,000 --------- 120,000 519,000 6,000 This program covers cash sales of defense equipment and services to eligible developed countries and international organizations. Adjustments Applicable receipts from the public NOA 050 Exp. Total, military assistance____ NOA Exp. 1,183,011 864,561 600,000 m,ooo 455,000 Totals for military assistance are distributed as follows: -70,000 1968 NOA Enacted _____ Transmitted_ ( B) ________ B Proposed for 1eparate tran1mittal under propo1ed legislation. To carry out authorizing legislation to be propo1ed. F https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 600,000 1969 Exp. 525,000 --------- ----------------- --------- NOA --------340,000 120,000 Exp. 449,000 6,000 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued e,)?!:te I t:C~~:~~• (~), I .~::t~d I ..);9!:te Account and functional code Explanation -~----~-------'--------'------------------------- FUNDS APPROPRIATED TO THE PRESIDENT-Continued ------ federal Funds >-3 p:1 t_,,J ECONOMIC ASSISTANCE t:c C1 General and special funda: Technical cooperation and de- NOA velopment grants __________ l52 Exp. American schools and hospitals NOA abroad ___________________ l52 Exp. Surveys of investment opportuni- NOA ties _____________________ .152 Exp. International organizations and NOA programs-grants ________ .152 Exp. 199,885 179,950 F23S,000 55,050 220,661 200,000 213,000 13,000 10,989 11,500 FJS,100 3,600 12,426 12,000 ----------260 Increase reflects expansion of health, education, and agriculture programs, 12,000 ------------ Increase is largely for 3d phase of medical center construction for the American University of Beirut. 1,ZS0 F3,000 1,750 Greater number of surveys is planned. 200 300 100 140,433 130,000 112,796 128,000 F 14Z,ZSS IZ,ZSS 132,000 4,000 IZ,000 IZ,000 10,000 10,000 ':I Cl t_,,J >-3 l:_j 0 ::tl ....l:_j Ul C Estimate provides voluntary contributions to selected international agencies and programs. ~ ~ t_,,J International organizations and NOA programs-loans _________ .152 Exp. ----------- ----------------------- ------------- The 1st portion of a $51 million loan previously authorized for Indus Basin development is requested. Supporting assistance ________ 152 NOA Exp. 684,SIZ 600,000 FS95,000 -5,000 587,025 601,800 621,000 19,200 Most of the estimate is for stabilization and development aid to Vietnam and other important needs in Southeast Asia. African and Latin American requirements decrease. Contingency fund: General_ _________________ 152 NOA 35,000 9,875 D-J,304 F45,000 36,4Z9 Provides the minimum flexibility needed to meet emergencies and opportunities in the national interest. Exp. 59,144 57,000 52,500 -4,500 Southeast Asia program ____ 152 Exp. 39,476 8,000 7,500 -500 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Unforeseen needs in Southeast Asia are now met from the general contingency fund.) > ::tl ,_. co 0, co Alliance for Progress: Technical NOA cooperation and development Exp. grants ____________________ 152 87,650 101,019 0 Partners of the Alliance ______ 152 NOA ----------Exp. ----------- 0 Social progress trust fund _____ I52 c., t 0 Exp. 63,240 80,000 F 90,000 110,000 30,000 96,000 6,000 330 ------------- -330 100 200 100 55,000 44,000 -11,000 F58, 775 Z,248 60,000 1,500 3,870 538 Most of increase is for U.S. contribution to programs worked out by American Presidents at April 1967 summit meeting. This people-to-people program is included with the Alliance for Progress, Technical cooperation and development grants. (The Inter-American Development Bank now has responsibility for this program.) Administrative expenses: Agency for International De- NOA velopment_ _____________ 152 Exp. 59,792 58,500 State _____________________ 152 NOA 3,315 3,255 077 Exp. 3,305 4,000 3,800 -200 Subtotal, grants and other NOA programs. Exp. 1,223,791 1,071,460 1,259,143 1,ZZ0,000 148,540 1,214,600 1,252,300 37,700 420,065 389,000 F515,000 126,000 409,964 375,000 420,000 45,000 499,615 635,103 435,000 600,200 F765,000 330,000 650,000 49,800 Increase is required for important development needs in the Near East-South Asia and Africa regions. Development loan fund (liqui- Exp. dation account) _________ 152 26,591 24,800 20,000 -4,800 (The fund ceased to exist as a corporate entity in 1962 except for liquidation of loan commitments.) Foreign investment guarantee Exp. fund ___________________ 152 -10,157 -10,800 -12,000 -1,200 (Receipts from guarantee fees substantially exceed administrative costs and claims payments. Total guarantees outstanding as of June 30, 1969, will be approximately $7.8 billion.) 919,680 824,000 1,280,000 1,061,501 989,200 1,078,000 456,000 61,707 55,300 1,ZZ7 0 } } Provides for salary increases. Provides for salary increases. Public enterprise funds: Loan and guarantee programs: Alliance for Progress-develop- NOA ment loans _____________ 152 Exp. Development loans-revolving NOA fund ___________________ 152 Exp. Subtotal, loan and guar- NOA antee programs. Exp. D Proposed for separate transmittal. civilian pay act supplemental. F To carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 88,800 Increase supports Alliance growth targets worked out at American Presidents' April 1967 summit meeting. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OU1:LAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I (- ) Idecrease Explanation FUNDS APPROPRIATED TO THE PRESIDENT-Continued Fe deral Funds-Continued >-3 ~ ECONOMIC ASSISTANCE-Continued tr! Int ragovernmental funds: Advance acquisition of property- Exp. revolving fund ____________ 152 -634 0 flice of the Inspector General of Exp. -15 Foreign Assistance ________ I52 1,224 28 ------------- 14 -1.224 -14 Advances and reimbursements_ 152 Exp. -5,042 Subtotal, intragovernmental Exp. funds. -5,691 1,294 14 -1.280 2,143,471 1,895,460 2,500,000 604,540 2,314,952 2,205,094 2,330,314 125,220 Subtotal. Federal funds _____ NOA Exp. 42 ------------- (Revenues are expected to equal expenses.) (Advances from other appropriations finance continued review o foreign assistance activities.) td Ci t:I 0 tr! >-3 >,j 0 -42 !:lj >,j ..... U1 Q > t" ~ tr! Tr ust Funds > !:lj Mis cellaneous trust funds (perma- NOA n ent) ___________ - - - - - - - - - -_I 52 Exp. 2,908 2,803 2,800 -3 3,660 2,977 2,829 -148 These advances by foreign governments pay for local costs of assistance programs. ... ~ O> ~ Ad:justments App licable receipts from the public NOA 850 Exp. 150 NOA Exp. } -37, /84 } -50, 82/ Total, economic assistance __ 2,058,374 2,230,607 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. -37,854 -39,585 -/, 731 -63, 498 -69, 152 -5, 654 1,796,911 2,394,063 2,106,719 597,152 2,224,406 117,687 Federal Funds OFFICE OF ECONOMIC OPPORTUNITY General and special funds: Economic opportunity program NOA 655 Exp. 1,663,960 1,483,042 1,748,500 2,176,500 I, 996,006 428,000 1,851,702 14,500 144,304 Estimate will enable major expansion of the comprehensive employment program, and will provide increases for rural community action, Head Start Follow Through, and emergency food programs. Public enterprise funds: Economic opportunity loan fund LA 655 Exp. NL Subtotal, Federal funds_____ 1,400 16,898 3,500 -11,000 978 24,389 905 3,089 -495 -13,809 1,663,960 21,500 1,748,500 14,500 2,176,500 3,500 428,000 -11,000 1,484,020 24,389 1,853,102 16,898 1,996,911 3,089 143,809 -13,809 21,500 NOA LA Exp. NL Lower estimate together with collections on outstanding loans will continue the total dollar level of outstanding loans at about the 1968 level. Approximately 7,500 loans for farm improvements or small nonfarm businesses and 250 loans to rural cooperatives will be made. Trust Funds NOA 2 2 655 Exp. 187 14 -131 -131 1,663,831 21,500 1, 748,371 14,500 2,176,371 3,500 428,000 -11,000 1,484,076 24,389 1,852,985 16,898 1,996,782 3,089 143,797 -13, 809 Gifts and contributions (permanent) 2 ------------ These fu1;1ds are used to help support the war on poverty. 2 -12 Adjustments Applicable receipts from the public NOA 650 Exp. Total, Office of Economic Op- NOA LA portunity. Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } I -131 ------------ Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1ncreaae or I decrease ( - ) FUNDS APPROPRIATED TO THE PRESIDENT-Continued ! Federal Funds PEACE CORPS General and special funds: Peace Corps ________________ 152 NOA Exp. IIZ, 800 109,500 5,300 I. 600 Increase provides for expansion of volunteer and trainee end-of year strength from I 4,570 in I 968 to I5,200 in I 969. 791 805 70 -53 Miscellaneous contributed funds are used to further the program 109,896 111,850 107,500 107,900 595 340 7ZI 858 -302 -383 110,189 I II, 888 107,838 108,375 113, Z08 109,922 5,370 I, 547 3,400 15,741 8,992 -6,749 F Trust Funds Miscellaneous trust funds (perma- NOA nent) ______________________ 152 Exp. Adjustments Applicable receipts from the public NOA 150 Exp. Total, Peace Corps_________ NOA Exp. } -383 ------------ Federal Funds PHILIPPINE EDUCATION PROGRAM General and special funds: Philippine education program_ 153 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Funds from Philippine war damage claims will be complete!y expended in 1969.) PUBLIC WORKS ACCELERATION Public works acceleration ____ 507 Exp. 21, 133 13,053 --------·---- -13,053 (Projects were approved prior to July 1, 1964, and have been completed.) -112 (Activity will be included with Agricultural Research Service, Salaries and expenses, special foreign currency program.) SPECIAL FOREIGN CURRENCY ACTIVITIES . Translation of publications and Exp. scientific cooperation ______ -355 226 112 ------------- SOUTHEAST HURRICANE DISASTER Southeast hurricane disaster __ 506 NOA Exp. 9,000 10,409 ------------- ------------ (Program expired Jan. 1, 1967.) 4,555 -------------4,555 ------------- Summary Total, Federal funds ___ _ NOA LA Exp. NL 5,090,402 21,500 4,943, 156 21,217 4,713,510 14,500 5,184,982 14,257 6,325,150 3,500 5,599,743 114 1,611,640 -11,000 414,761 -14, 143 Total Federal funds are distributed as follows: /968 NOA LA Exp. Enacted _____ 4,703,510 14,500 5,178,982 ( A) ________ 10,000 --------6,000 NL 14,257 /969 NOA LA Exp. Transmitted_ 5,759,250 3,500 5,579,743 (A) ________ 4,000 --------( B) ________ --------565,900 16,000 ---------- Proposed for separate transmittal under existing legislation, other than pay supplemental. B Proposed for separate transmittal under proposed legislation. F To carry out authorizing legislation to be proposed. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NL 114 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continuecl Account and functional code 1967 I enacted I 1968 1969 ea ti mate estimate Increase or I ( -) I decrease Explanation FUNDS APPROPRIATED TO THE PRESIDENT-Continued Total, trust funds ________________ NOA Exp. l, 482,976 l, 353,526 1,128,849 l, 3Z3, 593 1,333,636 -29, 933 204,787 Adjustments: Applicable receipts NOA }-1,078,035 -/, /50, 000 from the public ______________ 050 Exp. 150 NOA } -51, /23 -63, 88/ Exp. 650 NOA -/3/ -/3/ Exp. 850 NOA -37, 196 -37, 854 Exp. -/, 400,000 -250, 000 -69, 535 -5,754 1. 074, 137 } } Total, funds appropriated to NOA the President. LA Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5,406,894 Zl,500 4,850,809 21,217 4,815,170 14,500 5,061,965 14,257 -/3/ -----------· -39, 585 -1,731 6,139,492 3,500 5,424, 128 114 l,324,322 -11,000 362,163 -14, 143 Total funds appropriated to the President are distributed as follows: 1968 NOA LA Exp. NL Enacted _____ 4,805,170 14,25 7 14,500 5,055,965 ( A) ________ 6,000 ------10,000 --------/969 NOA LA Exp. NL 3,500 5,404,128 11 4 Transmitted_ 5,573,592 ( A) ________ 4,000 --------------( B) ________ --------16,000 ------565,900 --------- DEPARTMENT OF AGRICULTURE Federal Funds AGRICULTURAL RESEARCH SERVICE General and special funda: Salaries and expenses ________ _355 Permanent_ _____________ _- - Reappropriation __________ _- - - NOA NOA NOA Exp. 208,693 zzz, 819 ZS,000 Z,000 A-31 D-J,420 15,000 Z,000 214,383 233,535 224,921 -l,536 l l 8 Z,017 15,000 8 247,800 -),536 } 12,729 Salaries and expenses ( special for- NOA eign currency program) ___ _355 Exp. 4,500 8,500 12,700 4,200 7,242 6,575 8,912 2,337 Construction of facilities ____ _355 Exp. 436 122 Animal quarantine station ( per- NOA manent, indefinite, special fu nd). Exp. 355 --------------------- 200 180 Increases for staffing new research laboratories, research oncotton, pest control activities, salary costs, and plans, cons truction, and improvement of facilities are partially offset by phasing out certain other research activities and decreases in the imported fire ant and hog cholera programs, and by the elimination of nonrecurring construction items. Proposed le gislation to place certain activities on a self-supporting basis will bring in $1.5 million. Increase expands use of excess foreign currencies for market development, agricultural, and forestry research. -122 (Construction of Columbia, Mo., facility was completed in May 1967. Minor alterations and construction at several ot her locations in 1968 should close out this account.) 327 127 347 167 Receipts from sale of old Animal Quarantine Station, Clifton, N.J., will be used for construction of new station. Additional NOA for this purpose is included in account for Salaries and expenses. ------------~ lntragovernmental funds: Working capital fund, Agricultural Exp. Research Center __________ _355 Total, Agricultural Resea rch NOA Exp. Service. A B D 264 ------------- 240,193 245,068 222,324 240,412 ------------- ------------ (This fund finances, on a reimbursable basis, central facilities and services amounting to $5 million.) 251,412 I 255,523 6,344 15, I II Proposed for separate transmittal under existing legislation, other than pay supplemental. Proposed for separate transmittal under proposed legislation. Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or ( -) I decrease I Explanation DEPARTMENT OF AGRICULTURE-Continued Federal Funds-Continued COOPERATIVE STATE RESEARC H SERVICE General and special funds: Payments and expenses ______ 355 N OA 58,776 63,113 Exp. 56,397 59,211 62,179 65,063 -934 5,852 Represents a decrease of $1 million in grants for facilities, which is partially offset by increased salary costs. Cooperative extension work, pay- N OA ments and expenses ________ 355 E xp. 92,799 92,509 96,602 89,900 97,629 97,487 1,027 7,587 Increase provides for salary cost for F ederzl employees and fo mandatory retirement and compensation fund costs for exten sion agents. A shift of $3.385 thousand is proposed from for mula distribution to distribution under section 8 of the Smith Lever Act to enable the Extension Service to work intensive! y with 70,000 low-income families. EXTENSION SERVICE lntragovernmental funds: Advances and reimbursements-355 E xp. Total, Extension Service_ _ __ N OA Exp. -13 ------------92, 7991 92,496 I 96,602 89,900 1,204 1,304 1,216 n37 1,323 ------------- -----------1,027 97,629 97,487 7,587 1,848 507 1,788 465 FARMER COOPERATIVE SERVICE General and special funds: Salaries and expenses ________ 355 N OA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. } Provides additional technical and developmental assistance and support to small, low-income farmers. lntragovernmental funds: Advances and reimbursemcnts_355 Exp. Total, Farmer Cooperative NOA Service. Exp. 8 ------------- ------------- ------------ 1,204 1.224 1,341 1,323 Conservation operations ______ 354 NOA 109,248 } Exp. 110,520 113,438 D},455 114,500 NOA 6,327 S,990 } 6,327 6,545 1,848 1,788 507 465 116,313 1,420 116,000 1,500 6,ZZ4 59 6,224 ....:.321 SOIL CONSERVATION SERVICE General and special funds: Watershed planning _________ 401 Exp. Watershed protection _______ -401 NOA LA Exp. Flood prevention ____________ 401 NOA LA Exp. n175 ZS,604 ZS, 751 12,395 -13,356 Reduces funds for works of improvement. Loan funds in 1968 80 ------------- ------------- -----------and 1969 will be provided from the Direct loan account, 27,356 26,389 25,000 -1.389 Farmers Home Administration. 18,504 15,877 16,336 16,358 Resource conservation and devel- NOA opment __________________ 354 4,379 6,121 Exp. Total, Soil Service. Conservation NOA LA Exp. D zss 4,139 } 13,414 15,700 -Z,9ZZ -658 Program continues at about the same level as in 1968 on the basis of projected obligations. 6,474 218 Provides funds for planning starts in 10 new project areas and for an increase for operating projects. Loan funds will be provided from the Direct loan account, Farmers Home Administration in 1968 and 1969. 6,400 166 196,968 -42,793 D135 ------------- ------------- -----------6,234 229,545 239,761 4,965 ------------238,162 243,073 Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Provides for additional salary costs. 65,482 70,360 42,148 -28,ZlZ Estimate will start construction on about 55 watershed projects, 4,600 ------------- ------------- -----------continue construction on 295, complete 70, and provide advance 73,943 73,047 61,945 -II. l02 assistance on 3 IO projects. Loan funds will be provided from the Direct loan account, Farmers Home Administration in 1968 and 1969. Great plains conservation program NOA 354 Exp. LA Provides for additional salary costs. ------------- -----------231,269 -11.804 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1ncrease or I decrease ( - ) DEPARTMENT OF AGRICULTURE-Continued ederal Funds-Continued ECONOMIC RESEARCH SERVICE G eneral and ■ pecial funda-Continued Salaries and expenses ________ 355 NOA 12,421 Exp. 12,122 12,421 D368 12,562 } 13,964 1,175 13,763 1,201 13,819 A3} D385 14,243 } 14,674 439 14,629 386 89,276 A5,922 8 4,766 91. 731 A5,564 }B-11,655 } 119,846 8,227 119,486 A463 B-11,030 11.624 Increase is for research on labor and capital problems in farming; water quality and use; land resources and economic development; design of rural economic indicators; assistance to foreign countries in self-help analyses; and for additional pay costs. STATISTICAL REPORTING SERVICE Salaries and expenses ________ 355 NOA 13,815 Exp. 13,276 Increase is for evaluating the effectiveness of production and marketing statistics of crop and livestock products. CONSUMER AND MARKETING SERVICE Consumer protective, marketing, and regulatory programs._ .355 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA 83,825 Exp. 82,923 } } .... cc O> cc Supplemental in 1968 and increases in 1969 are primarily for expansion of the meat and poultry inspection programs. Proposed legislation reAects establishment and operation of a revolving fund for user charges for various marketing services. In addition, proposed legislation eliminates certain obsolete marketing services. Payments to States and poaseaaions NOA 355 Exp. 1,750 1.750 1,750 1,750 Special milk program ________ 659 NOA Permanent__________________ NOA Exp. 51,000 53,000 96,066 --- -------104,000 l02,000 ----------104,000 School lunch program ________ 659 NOA Permanent__________________ NOA Exp. 168,605 45,000 208,298 182,825 45,000 219,825 184,443 64,325 246,044 Food stamp program _________ 659 NOA 109,976 161,745 Reappropriation_ _____________ NOA Exp. 29,525 114,095 23,200 177,945 1,750 ------------ Estimate provides for matching payments to States for programs 1,750 -----------to improve marketing. }----------- Estimate reflects continued financing of this program by transfer from the permanent appropriation, Removal of surplus agricultural commodities. ----------- l02,000 ---- } Z0,943 26,219 ;~~:::_} 60,055 223,000 } 15,000 60,055 Increase provides for normal growth in the program, $IO million for special assistance to needy schools, $6.5 million for the pilot school breakfast program, $6 million for food service equipment, and $2.3 million for State administrative expenses. Increase provides for an expanded pro&',am to reach approximately 3 million participants. Proposed legislation covers increased authorization. 8 Perishable Agricultural Commodi- NOA ties Act fund (permanent, in- Exp. definite, special fund) ______ 355 894 851 905 916 905 978 Removal of surplus agricultural NOA commodities (permanent, in- Exp. definite, special fund) _____ -351 361,040 145,419 404,351 175,000 406,558 180,000 B-1,500 Total, Consumer and Market- NOA ing Service. Exp. 904,615 649,402 A B D 1,023,740 774,731 1,115,172 876,191 -----------62 } Z,207 30% of gross customs receipts is available to finance this program. 3,500 Increased expenditures result from larger purchases of commodities for School Lunch Program. Proposed legislation will establish user charges to finance part of administration of market agreements and orders. 91,432 101,460 Proposed for separate tranamittal under existing legialation, other than pay supplemental. Propoaed for separate tranamittal under propoaed legislation. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis License fees are used to finance administration of the Act. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1ncreaae or I decrease ( - ) DEPARTMENT OF AGRICULTURE-Continued Federal Fun ds-Continued FOREIGN AGR!CULTURAL SERVICE General and ■pee ial fund ■-Continued Salaries and expenaes _____ _355 NOA Permanent ---------------- NOA Exp. 21,441 3,117 22,142 3,117 22,414 3,117 20,313 24,092 25,263 Salaries and expenses (special Exp. foreign currencyprogram)-355 836 1,000 Total, Foreign Agricultural NOA Service Exp. 24,558 25,259 25,531 272 21,149 25,092 26,263 I, 171 } 272 Increase is primarily for strengthening market development market intelligence, and attache services. I, 171 1,000 ------------ (Program is financed from balances of prior year appropriations. INTERNATIONAL AGRICULTURAL DEVELOP MENT SERVICE lntragovernmen tal funds: Advances and reimbursements_ 152 Exp. 343 ------------- ------------- ------------ COMMODITY EXCHANGE AUTHORITY General and apecial fund ■ : Salaries and expenses _______ -355 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA 1,434 1,486 044 Exp. 1,304 1,522 } 1,584 54 1,580 58 Provides capability to handle increased audit workload. AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE Expenses, Agricultural Stabiliza- NOA tion and Conservation Service. Exp. 351 Sugar Act program __________ 351 NOA Exp. Agricultural conservation program: Contract authorization ____ -354 NOA Liquidation of contract authoriExp. zation. 128,558 131,691 137,935 140,120 143,934 143,700 5,999 3,580 Provides for additional salary costs. 80,000 81.689 80,000 85,655 82,300 86,702 Z,300 1,047 Increase is required to make payments to all eligible producers. 8 ~ -120,000 Estimate, although reduced, will provide adequate funds to share the cost of high priority conservation practices. (-24,500) -13,274 ZZ0,000 (220,000) 215,572 ZZ0,000 (220,000) 221,524 100,000 (195,500) 208.250 NOA Exp. 62,000 53,575 84,500 84,656 85,700 87,877 1,200 3,221 Increase required primarily to make initial payments on additional agreements signed under the 1969 program. No additional agreements authorized in 1968. Conservation reserve program_35 I NOA Exp. 140,650 140,735 123,000 123,419 109,500 109,500 -13,500 -13,919 Requirements for annual rental payments to producers will decrease in 1969 with contracts expiring on about 1.8 million acres in 1968. Cropland adjustment program-351 t>J >rj t>J ~ t>J ;,:! > t< "d ;,:! 0 0 ;,:! > ~ Emergency conservation measures NOA 354 Exp. 5,000 5,702 5,000 ------------ Payments are for cost-sharing assistance to farmers to rehabili7,700 -----------tate lands damaged by natural disasters. ><l Cropland conversion program_ 351 7,500 ------------- ------------- ------------ (No program is being conducted in 1968 and 1969. Emphasis -236 will be placed on cropland adjustment program.) 1,655 3,314 3,078 > 0 NOA Exp. Indemnity payments to dairy NOA farmers __________________ 355 Exp. 400 166 5,000 7,700 500 ------------510 250 D Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -500 -260 Provides payments to farmers for milk excluded from markets due to pesticide residues. Authority for making these payments expires June 30, 1968. td t>J z Q ><l Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 estimate 1969 estimate Increase or I decrease ( -) I Explanation DEPARTMENT OF AGRICULTURE-Continued Federal Funds -Continued AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE-Con. General and apecia I funds-Continued Appalachian region conservation NOA program _____ ___________ 507 Reappropriation -------------- NOA Exp. Total, Agricul tural Stabiliza- NOA tion and Conservation Exp. Service. 3,000} ------------- ------------- ------------ This activity is included under Appalachian regional development programs, Funds appropriated to the President. 360 2,800 ------------- ------------- -----------647,468 650,935 526,434 -124,501 633,587 666,898 647,057 -19,841 COMMODITY CRE DIT CORPORATION Price Support an d Related Programs Public enterprise fu nda: Price support and related pro351 grams: Contract authorization (per- NOA manent, indefinite). Appropriation to liquidate contract authorization. Reimbursement for net realized NOA losses. LA Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ----------- 988,860 ------------- (809,578) ------------Z,484,350 603 1,651,741 603 (350,467) 1,428,825 3,274,539 3,000 ------------2,775,372 2,702,868 3,000 ------------- -988,860 (350,467) 1,845,714 Request is for restoration of the remaining 1966 and part of the -3,000 1967 realized losses, and will provide sufficient operating 72,504 capital for 1969. -3,000 (34. 300) I Limitation on administrative expenses. Total, price support and re- NOA LA lated programs. Exp. NL 2,484,350 603 1,651,741 603 (31,500) 2,417,685 3,000 (31,500) -----------3,274,539 ------------2,702,868 2,775,372 3,000 ------------- 856,854 -3,000 72,504 -3,000 Special Activities lntragovernmental funds: Military housing, barter and ex- Exp. change ___________________ 351 -2,000 -2,000 National Wool Act (permanent, NOA indefinite, special fund) ___ _351 Exp. 38,260 34,793 63,700 28,907 35,051 63,700 62,571 -1,129 Miscellaneous game bird protec- Exp. tion _____________________ -351 -86 Research to increase domestic con- Exp. sumption of farm commodities. 3,506 8,388 4,156 100 -5,000 -5,000 -2,000 ------------ (Receipts are from Department of Defense for housing con- structed in F ranee, using foreign currencies acquired by sale of agricultural commodities.) -19 ------------- Increase due to higher price support payment rates in 1968 recoverable from 1969 appropriation. 19 (Reimbursement from the Department of the Interior is for surplus grain.) -4,232 (This program 1s carried out by the Agricultural Research Service.) 355 Loans for conservation purposes Exp. 354 Transfer of long-staple cotton Exp. from national stockpile for sale by Commodity Credit Corporation ____________________ 351 Export credit sales program __ 351 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LA NL 437 1,197 ------------- ------------ (Corporation funds may be loaned to the Secretary of Agriculture to carry out the agricultural conservation program.) -1, 197 (The Corporation is authorized to sell cotton released from the national stockpile. Proceeds, less costs inourred, are deposited in the Treasury as miscellaneoos receipts.) The Food for Peace Act of 1966 authorized the Corporation to finance the export sale of agricultural commodities, including private stocks, under its export credit sales program with reimbursement for costs incurred. 261,324 -32,100 23,500 55,600 261,324 -32, 100 23,500 55,600 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 estimate 1969 estimate lncre .. e or I ( -) Idecrease Explanation DEPARTMENT OF AGRICULTURE-Continued Federal Funds-Continued COMMODITY CREDIT CORPORATIONContinued Special Activities-Continued lntragovernmental funds-Continued Subtotal__ _________________ NOA LA Exp. NL Increase or decrease (-) in Exp. amount owed by general fund for foreign assistance programs. Foreign donations financed by Exp. Corporation, excluded from expenditures above. 38,260 261,324 37,008 261,324 34, 793 -32,100 66,266 -32, IOO 63, 700 23,500 59,727 23,500 28,907 55,600 -6,539 55,600 -78, 321 141,838 -2, 543 -144,381 45,488 ------------- ------------- ------------ Total, special activities NOA financed by Commodity LA Credit Corporation. Exp. 38,260 261,324 4,175 261,324 34,793 -32,100 208, I04 -32, IOO 63,700 23,500 57,184 23,500 28,907 55,600 -150,920 55,600 Total, Commodity Credit NOA Corporation, price support LA and related programs and Exp. special activities. NL 2,522,610 261,927 1,655,916 261,927 2,452,478 -29,100 2,9!0,972 -29, 100 3,338,239 23,500 2,832,556 23,500 885,761 52,600 -78,416 52,600 NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (The estimates indicate amount owed to Commodity Credi Corporation by foreign assistance and special export program will be -$93,322 thousand in 1967, $48,516 thousand in 1968 and $45,973 in 1969.) FOREIGN ASSISTANCE AND SPECIAL EXPORT PROGRAMS General and special funds: Public Law 480: Sale of agricultural commodities NOA for foreign currencies and Exp. for dollars on credit terms (title l) ________________ l54 1,417,000 1,305,500 361,537 -943,963 1,070,253 890,000 1,002,250 112,250 0 Commodities disposed of and NOA other costs incurred in connec- Exp. tion with donations abroad (title Il) _______________ l54 Z00,000 300,000 381,374 425,000 Total, Public Law 480 ____ NOA Exp. 1,617,000 1,451,627 International Wheat Agreement Exp. 351 556,606 256,606 442,150 17,150 1,605,500 918,143 -687,357 1,315,000 1,444,400 129,400 23,000 ------------- 25,338 -23,000 1,200 -24, 138 Subtotal, foreign assistance NOA and special export pro• Exp. grams. I, 617,000 I, 476,656 l,6Z8,SOO 918,143 -710,357 I, 340,338 1,445,600 l05, 262 Increase ( - ) or decrease in Exp. amount owed by general fund to Commodity Credit Corporation. 78,321 -141,838 2,543 144,381 Includes $200.000 thousand to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Primarily includes increases in wheat and ocean transportation partly offset by a decrease in dairy products. -7,511 ------------- ------------- ------------ (International Wheat Agreement Act expired June 30, 1965.) Bartered materials for supple- NOA ----------mental stockpile __________ -351 Exp. 32,540 O Reflects shift from sales for foreign currencies to sale for dollars on credit. Proposes to combine these two programs for interchangeability of available funds. Increase in expenditures is primarily for rice, cotton, ocean transportation, and lower receipts from sale of foreign currencies. This is partly offset by decrease in wheat and higher loan repayments. · Expenditures are for value of strategic materials acquired by barter and then transferred to supplemental stockpile. Decrease reflects phasing out the program. (Expenditures shown above have been made by the Commodity Credit Corporation in advance of appropriations in some years. This adjustment line brings the total of this group to the amounts paid by the appropriations to the Corporation during each year.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continuecl I es~?!:te e,~?!~te I}.:~: ~:• (~)I ------------------'-----'------'--------'--------'---------------------Explanation e~!c6t.~d Account and functional code DEPARTMENT OF AGRICULTURE-Continued Federal Funds-Continued FOREIGN ASSISTANCE AND SPECIAL EXPORT PROGRAMS-Continued General and special funda-Continued Foreign donations financed by Exp. Corporation, included m expenditures above. -45, 488 ------------- ------------- ------------ Total. foreign assistance and NOA special export programs. Exp. 1,617,000 Total, Commodity Credit Corporation, foreign assistance programs, and special export programs. LA Exp. NL NOA - 918, 143 -710,357 1,198,500 1,448, 143 249,643 4,139,610 261,927 4,080,978 -29,100 4,256,382 23,500 175,404 52,600 3,165,405 261,927 4,109,472 -29, 100 4,280,699 23,500 171,227 52,600 1,509,489 1,628,500 FEDERAL CROP INSURANCE CORPORATION Administrative and operating ex- NOA penses __________________ -35 I Exp. 8,683 10,206 12,000 1,794 8,632 10,380 12,000 1,620 -6,339 14,844 941 -13, 903 Public enterprise funds: Federal Crop Insurance Corpora- Exp. tion fund ______________ -351 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase reflects a partial shift in financing from the Corporation fund to direct appropriation, and includes increased salary costs in 1969. (Includes payments for insurance losses offset by premium collections. 1969 losses are estimated at 90% of premiums compared with 118% in 1968.) (3,329) Limitation on administrative and operating expenses. (2,850) (1,430) (-1.420) Decrease reflects a partial shift in financing from the Corporation fund to direct appropriation. 8,683 2,294 10,206 25,224 12,000 12,941 1,794 -12,283 462,000 411,995 J-180,249 434,600 470,500 -191,600 424,000 550,000 -189,500 -10,600 79. 500 2,100 The 1969 estimate plus prior year balances will provide for estimated loan commitments of $345 million for electrification and $125 million for telephone. Proposed legislation would reduce commitments under the regular telephone program by $50 million and provide telephone bank loans in the same amounts. Salaries and expenses. _______ 353 NOA Exp. 12,426 12,2IO 12,457 12,832 12,937 12,890 480 58 Estimate covers administration expense of rural electrification and telephone programs. Total, Rural Electrification NOA LA Administration. Exp. NL 12,426 281,751 12,2IO 231. 746 12,457 243,000 12,832 278,900 12,937 234,500 12,890 360,500 480 -8,500 58 81,600 Rural water and waste disposal NOA grants ___________________ -352 Exp. 26,000 11,147 30,000 27,000 27,250 33,750 -2,750 6,750 Rural renewaL _____________ 352 NOA LA Exp. 196 1,004 1,061 300 1,300 1,800 300 1,300 1,390 -----------------------4IO Rural housing for domestic farm NOA labor__ __________________ .352 Exp. 3,000 220 3,500 3,800 5,000 5,000 1,500 1,200 Total, Federal Crop Insur- NOA ance Corporation. Exp. RURAL ELECTRIFICATION ADMINISTRATION General and special funds: Loans (authorization to spend debt receipts) __________ 353 Repayments deposited in genera! fund. LA NL LA NL FARMERS HOME ADMINISTRATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Provides planning and development grants for rural water and sewer systems. Provides technical and financial assistance to 5 existing projects. Increase is for larger program of grants to nonprofit public or private organizations for low-rent housing and related facilities. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I ( -) I decrease Explanation DEPARTMENT OF AGRICULTURE-Continued Federal Funds-Continued FARMERS HOME ADMINISTRATl ON-Continued General and special funds-Continued Salaries and expenses. ______ .352 NOA Exp. Payment of sales insufficiencies NOA 352 51,542 52.167 ----------- 55,941 58,964 59,132 58,447 13,268 ------------- 3,191 -517 -13,268 Increase due to servicing of higher number of outstanding loans. Insufficiencies will be financed from balances of prior NOA. Public enterprise funds: Direct loan account. ________ .352 LA Exp. NL 488,000 -39, 694 43,237 600,000 -16. 363 63,778 175,000 -17,227 32,622 -425,000 -864 -31, 156 Receipts and balances will finance an estimated loan program of $337.9 million. Net lending amounts for all years include loans for rural renewal, watershed protection, flood prevention, resource conservation, and development and operating loans. Rural housing direct loan account LA 352 Exp. NL 112,000 -5,067 -29, 402 150,000 -3, 162 -28,060 250,000 -2. 343 -11. 145 100,000 819 16,915 Receipts and balances will finance an estimated loan program of $30 million in 1969. Rural housing insurance fund . .352 Exp. NL -11, 176 42,288 2,944 -24,080 4,395 -2, 6IO 1,451 21,470 (Receipts, including sale of insured loans, and balances will finance an estimated loan program of $475 million in 1969.) 4,708 3,888 5,928 -28,560 6,468 -8,560 540 20,000 (Receipts and balances will finance an estimated loan program of $64 million and administrative expenses of $6 million in 1969.) Emergency credit revolving fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. 352 NL 71,239 ------------- ------------- ------------ (Receipts, including sale of insured loans, and balances will finance 7,604 3,032 10,636 an estimated loan program of $395 million in 1969. Legislation 65,275 -79,355 -14,080 will be proposed to provide nonfarm enterprise loans for lowincome farm families.) Agricultural credit insurance fund LA (permanent, indefinite, author- Exp. ization to spend debt receipts) NL 352 -8,700 -17,828 Total, Farmers Home Admin- NOA istration. LA Exp. NL 80,738 672,242 4,666 42,183 103,009 751,300 88,515 -96,277 91,682 426,300 100,516 -3, 773 -11,327 -325,000 12,001 92,504 469 6 461 8 RURAL COMMUNITY DEVELOPMENT SERVICE General and special funds: Salaries and expenses •....... 355 NOA 652 450 D}3 } Exp. 664 453 Advances and reimbursements.355 Exp. 36 12 Total, Rural Community De- NOA velopment Service. Exp. 652 700 463 465 Salaries and expenses ..•...•. 355 NOA 11,437 } Exp. 11,366 11,976 0 300 12,007 2,569 2,569 } Increase will provide for additional salary costs in I 969. lntragovernmental funds: ------------- -12 469 461 -4 6 12,867 591 12,584 577 3,166 526 3,118 446 OFFICE OF THE INSPECTOR GENERAL General and special funds: Increase provides for additional audit and investigation activities. PACKERS AND STOCKYARDS ADMINISTRATION Packers and Stockyards Act. .355 NOA D7l Exp. D 2,380 2,672 Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase covers expansion of activities in maintenance of effective competition in packer merchandising and procurement. poultry marketing practices, and testing livestock carcass and poultry scales. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued I Account and functional code 1967 enacted I 1968 estimate I 1969 estimate I Increase or I Explanation decrease(-) DEPARTMENT OF AGRICULTURE-Continued Federal Funds-Continued OFFICE OF THE GENERAL COUNSEL General and special funds-Continued Salaries and expenses ________ _355 NOA 4,323 4,325 Exp. 4,170 0}36 4,452 Salaries and expenses _______ -355 NOA 1,882 1,928 Exp. 2,039 } 5,033 572 5,006 554 1,997 32 1,991 27 3,419 753 Increase required for legal services for new and expanded programs. OFFICE OF INFORMATION 0 37 1,964 } Increase provides for additional salary costs. NATIONAL AGRICULTURAL LIBRARY Salaries and expenses _______ -355 NOA 2,458 2,608 0 58 } Exp. 1,801 2,890 3,510 620 Library facilities ___________ _355 Exp. 830 4,312 2,018 -2,294 Total, National Agricultural NOA Library. Exp. 2,458 2,666 7,202 3,419 753 2,631 5,528 -1.674 2,910 164 2,908 169 Increase primarily for transferring library operations to new facility at Beltsville, Md. ( Construction of new facility at Beltsville, Md., will continue. OFFICE OF MANAGEMENT SERVICES Salaries and expenses _______ -355 NOA 2,667 Exp. 2,612 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,667 0 79 2,739 } Provides for servicing new or expanded programs. GENERAL ADMINISTRATION Salaries and expenses _______ -355 NOA 4,052 4,487 } 4,664 50 4,659 91 Increase provides for additional salary costs. Exp. 3,728 D}Z7 4,568 Working capital fund ________ 355 Exp. 11 -116 113 229 Total, general administration. NOA Exp. 4,052 4,614 4,664 3,739 4,452 4,772 50 320 259,998 246,346 A4},000 249,149 -38, 197 Exp. 262,017 238,277 A39, 000 257,910 A2,000 } -17,367 Supplemental in 1968 is for fighting forest fires and is excluded from 1969 estimate. Increase in 1969, after adjustment, is for forest land management, State and private forestry cooperation, and forestry research. Cooperative range improvements NOA (special fund) _____________ 402 Exp. 700 700 700 700 700 700 ----------------------- These funds are advanced to and merged with the previous appropriation. lntragovernmental funds: (This fund finances central administrative services of over $8 million.) FOREST SERVICE General and special funds: Forest protection and utilization NOA 402 } Forest roads and trails _______ 402 Contract authorization: Current___________________ NOA 170,000 ------------- ___ FJZ5,ooo_} -45,000 Program will construct or reconstruct about 910 miles of multiPermanent________________ NOA ----------170,000 purpose roads. (I 10,000) (101,230) (91,970) (-18,030) Liquidation of contract authori102,500 112,622 98,155 -14,467 zation. Exp. Acquisition of lands for national NOA forests, special acts (special Exp. fund) ____________________ 402 80 80 80 62 62 80 Other general funds. ________ .402 NOA Exp. 300 A 624 ------------ Certain forest receipts otherwise payable to counties in Utah, ------------------------- ------------474 474 ------------- Proposed for separate transmittal under existing legislation, other than pay supplemental. D Proposed for separate transmittal, civilian pay act supplemental. F To carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 Nevada, and California are used to acquire lands within national forests. (Prior balances will acquire interest in existing roads or rightsof-way and land in Minnesota and Utah.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 estimate 1969 estimate 1ncrease or 1 decrease ( - ) Explanation I DEPARTMENT OF AGRICULTURE-Continued Federal Funds-Continued FOREST SERVICE-Continued General and special funds-Continued Assistance to States for tree plant- NOA ing ______________________ 402 Exp. Timber development organization Exp. loans and technical assistance _____________________ 507 Forest Service permanent appro- NOA priations (indefinite, special Exp. funds) ___________________ 402 1,000 1,000 1,000 1,076 1,006 1,007 Aid is given, mainly through grants, for reforestation work. 61 ______________________________________ (This activity included in Appalachian regional developmen programs.) 69,346 72,549 77,010 4,461 68,622 72,030 76,572 4,542 Working capital fund, Forest Exp. Service ___________________ 402 -1,651 -708 I, 225 I, 933 Advances and reimbursements-402 Exp. -429 Provides for use of a portion of operating revenues from nationa forests and grasslands for payments to States and counties for schools, roads, trails, and brush disposal. A portion i transferred to and merged with the appropriation, Forest road and trails. lntragovernmental funds: Total, Forest Service________ Subtotal, Federal funds_____ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. 650 ----- -------- -650 501,425 531,675 452,939 -78, 736 433,582 464, 113 437,649 -26,464 LA 6,999,750 1,220,885 7,144,529 965,200 7,167,860 684,300 23,331 -280,900 Exp. NL 5,589,580 535,856 6,865,076 153,523 7, 111, 676 380,227 246,600 226,704 NOA (Provides administrative services to national forests, research experiment stations, and other Federal agencies on a reimbursa ble basis.) Total Federal funds are distributed as follows: /968 Enacted ____ NOA 7,092,841 LA Exp. I, 156,800 6,820,512 NL 345, 123 Repayments ( A) _______ ( B) ------- --------46,922 -191.600 --------- -191,600 44,564 ----------------4,766 ----------------- --------/969 NOA LA Exp. NL 873,800 7,108,279 569,727 Repayments -189,500 --------- -189,500 ( A) _______ --------_______ ..,_ 2,463 ----------------6,809 --------934 --------( B) ------- Transmitted 7,161,051 Trust Funds AGRICULTURAL RESEARCH SERVICE Miscellaneous trust funds (pcrma- NOA nent) ______________________ 355 Exp. 1,074 1,215 1,017 1,191 1,393 1,364 2 ----------- 2 2 2 2 1 I I 1 ------------------------- 7 6 8 8 11 8 376 173 Certain services are financed by fees and contributions from business organizations, States, and others. COOPERATIVE STATE RESEARCH SERVICE Miscellaneous contributed funds NOA (permanent). ______________ 355 Exp. ----------------------- Contributions are received from States and local organizations for work performed under cooperative agreements. EXTENSION SERVICE Miscellaneous contributed funds NOA (permanent) ________________ 355 Exp. -I -I Contributions are received from States, local organizations, and others for work performed under cooperative agreements. FARMER COOPERATIVE SERVICE Miscellaneous contributed funds NOA (permanent) ________________ 355 Exp. ------------3 APropo1ed for separate transmittal under e:s.iating legislation, other than pay supplemental. Proposed for aeparate transmittal under propoaed legislation. B https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Contributions are received from States, local organizations, and others for work performed under cooperative agreements. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollara)-Continued Account and functional code I 1967 enacted 1968 1969 estimate estimate lncreaae or I (- ) Idecrease Explanation DEPARTMENT OF AGRICULTURE-Continued Trust Funds-Continued SOIL CONSERVATION SERVICE contributed funds NOA (permanent) ________________ 354 Exp. Miacellaneous 867 843 965 919 1,033 981 68 62 Includes funds received from States, local organizations, and in dividuala for work under cooperative agreements. 40 160 31 96 30 30 -1 -66 Includes funds received from States, local organizations, and others for economic research. ECONOMIC RESEARCH SERVICE contributed funds NOA (permanent) ________________ 355 Exp. Miacellaneoua STATISTICAL REPORTING SERVICE contributed funds NOA (permanent) ________________ 355 Exp. Miacellaneous 9 4 4 ------------40 9 44 4 29,408 28,796 31,778 32,805 32,363 1,027 31,745 Exp. 16 -71 -72 -1 Total. Consumer and Market- NOA ing Service. Exp. 29,408 28,812 31,778 31,674 32,805 32,291 1,027 617 Contributions are received from States, local organizations, and others for crop and livestock surveys, CONSUMER AND MARKETING SERVICE Consumer and Marketing Service NOA trust funds (permanent) _____ 355 Exp. Milk market orders assessment fund ( trust revolving fund) _______ 351 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Fees are for various inspection and grading services. 618 ( Operations are financed by assessments on regulated milk handlers.) AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE Miscellaneous contributed funds-351 Exp. ----------- -2 (Receipts, primarily from State and local organizations, are used for work under cooperative agreements.) -1,290 1,326 (Funds of 36 States are administered in insured loan programs within those States.) 1 ------------I ------------- -1 -I Miscellaneous funds received from States, local organizations, and others are available for work under cooperative agreements. 1 ------------I ------------- -1 -I Miscellaneous funds received from States, local organizations, and others are available for library services. 2 ------------- FARMERS HOME ADMINISTRATION State rural rehabilitation funds_ -352 Exp. -275 484 NL 2,344 -3,807 1,054 -2,481 OFFICE OF INFORMATION Miscellaneous contributed funds NOA ----------(permanent) ________________ 355 Exp. ----------- NATIONAL AGRICULTURAL LIBRARY z Miscellaneous contributed funds NOA (permanent) ________________ 355 Exp. 2 FOREST SERVICE Cooperative work (permanent) -402 NOA Exp. Subtotal, trust funds________ NOA 32,176 33,000 33,000 27,739 31,250 32,500 -----------1,250 63,586 66,808 68,275 1,467 58,512 484 67,536 -3,807 68,234 -2,481 698 1,326 Applicable receipts from the pub- NOA } -31,815 lie ________________________ -350 Exp. 400 NOA }-222,583 Exp. 850 NOA } -93, 430 Exp. 050 NOA -8,706 Exp. -34,034 -35,833 -1 ,799 -237,858 -242,439 -4,581 -103,946 -111,045 -7,099 -1,000 -1,000 Exp. NL Adjustments https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } ------------ Advances from others are used in cooperative work, such as reforestation, Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate Increase or I ( -) Idecrease Explanation DEPARTMENT OF AGRICULTURE-Continued Adjustments-Continued Repayments deposited ID general LA fund (included in details above). NL Total, Department of Agri- NOA LA culture. Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis }(-180,249) (-191, 600) (-189, 500) 6,706,802 1,220,885 5.291,558 536,340 6,834,499 96S, ZOO 6,555,774 149,716 6, 84S, 818 684,300 6,789,593 377,746 (2,100) II, 319 -280,900 233,819 228,030 Totals for the Department are distributed as follows: /968 NOA Enacted ____ 6,782,811 Repayments --------(A) _______ 46,922 ( B) ------- 4,766 LA Exp. NL 1,156,800 6,511,210 341, 31 6 -191.600 --------- -191,600 44,564 ----------------- --------- --------- --------/969 NOA Transmitted 6,839,009 Repayments --------(A)------- --------( B) _______ LA Exp. NL 873,800 6,786, 196 567, 24 6 -189,500 --------- -189,500 2,463 --------6,809 --------934 ----------------- DEPARTMENT OF COMMERCE F ederal Funds GENERAL ADMINISTRATION G eneral and special funda1 Salaries and expenses ________ 506 NOA 4,449 Exp. 4,595 4,509 DlSO 4,471 Working capital fund ________ 506 Exp. -29 181 Advances and reimbursements_506 Exp. -260 Total, general administration_ NOA Exp. 4,449 4,306 4,659 4,652 Salaries and expensea ________ 506 NOA 2,795 2,863 Exp. 2,619 Advances and reimbursements_506 Exp. 6 Total, Office of Business Eco- NOA nomics. Exp. 2,625 ntragovernmental fund■ : } 5,125 466 5, 145 674 -20 -201 Increase is primarily related to centralization of audit functions in the Office of the Secretary. ------------- ------------- ----------·5,125 5,125 466 473 3,314 371 3,285 359 BUSINESS ECONOMICS AND STATISTICS Office of Buaineu Economics G eneral and special fund ■ : Intragovernmental funds: A 2,795 DSO 2,926 ---- ·-------- ------------- ....................... 2,943 2,926 3,314 3,285 371 359 Proposed for separate transmittal under existing legislation. other than pay supplemental. B Proposed for separate transmittal under proposed legislation. D } Proposed for separate tranamittal, civilian pay act aupplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase to develop better data on groas national product by industry, plant and equipment expenditures, and for improvements in the Commerce Department econometric model. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1969 1968 estimate estimate 1 Explanation 1ncreaae or I decrease ( - ) DEPARTMENT OF COMMERCE-Continued Federal Funds-Continued BUSINESS ECONOMICS AND STATISTICS-Continued Bureau of the Census General and special funds, Salaries and expenses ________ 506 NOA 16,390 16,746 D40Q Exp. 16,634 Preparation for 19th decennial NOA census ___________________ 506 Exp. 1967 economic censuses ______ 506 NOA Exp. 18,250 1,104 17,120 18,200 1,080 Increase will enable improvement on data covering service trades, construction, manufacturers' inventories, and State and local government construction expenditures. Z,750 7,617 17,487 9,870 Preparation for the census will continue. 3,077 7,245 15,652 8,407 3,000 2,816 7,497 6,947 -550 7,718 7,197 -521 The major portion of data processing will be completed, and publication will begin. 1967 census of governments ___ 506 NOA Exp. 1,300 1,000 347 -653 Processing and publication of data will be completed in 1969. 1,211 1,075 361 -714 Modernization of computing NOA cquipment__ ______________ 506 Exp. 1,900 444 4,000 1964 census of agriculture ____ 506 NOA Exp. 2,029 } ....C0 0, C0 1963 censuses of business, trans- Exp. portation, manufactures, and mineral industries _________ 506 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5,375 ------------------------- -4,000 -5,375 (Final results of the census will be published in 1968.) 1,846 126 This program will be completed in 1968. 521 57 ·------------ -521 -57 (Activity completed in prior years.) Expired accounts __________ . _506 Exp. 1 -------- ·- --- ------------- ---- -------- lntragovernmental funds: Advances and reimbursements_506 Exp. Total, Bureau of the Census__ -937 ------------- ------------- ------ ·----- NOA Exp. 27,186 25,401 37,260 39,111 43,031 41,410 5,771 2,299 Total, business economics and NOA statistics. Exp. 29,981 28,026 40,203 42,037 46,345 44,695 6,14Z 2,658 ----------------------------------------- 153,000 22,000 5,372 935 169,500 33,500 39,620 2,900 16,500 11,500 34,248 1,965 ----------------------------------------- 3,500 51,500 2,903 3,832 3,500 55,000 3,500 23,300 Planning, technical assistance, and NOA ----------research __________________ 507 Exp. ----------- 25,000 Operations and administration_507 NOA ----------- Exp. -----·----- 19,610 n375 17,467 ECONOMIC DEVELOPMENT ASSISTANCE General and special funds: Development facilities ________ 507 NOA LA Exp. NL Industrial development loans and NOA guarantees ________________ 507 LA Exp. NL Miscellaneous appropriations•• 507 NOA LA Exp. NL D 9,567 ------------ Shift in program will provide a substantial increase in industrial 3,500 597 19,468 loans to economic development centers and a decrease in loans to redevelopment areas. 27, 780 19,320 2,780 9,753 Increase is for development district planning grants and initiating a new planning grant program for States. 21,370 1,385 20,147 2,680 Increased staff required primarily to keep pace with the increased work load in construction management (1,211 projects under construction in 1968 and over 1,700 in 1969) and loan services. 217,847 ------------- ------------77,969 ------------46,776 114,886 ------------101,600 40 289 55 823 47 100 Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } Increase is primarily for grants and loans to the most disadvantaged areas and for new regional commission supplementary grant programs in 5 regions. ------------ ------------13,286 -8 723 (Expenditures are for 1966 and 1967 appropriations. The programs are now funded in the above appropriations.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 ea ti mate estimate 1 Explanation 1 ncrease or I decrease ( - ) DEPARTMENT OF COMMERCE-Continued Federal Funds-Continued ECONOMIC DEVELOPMENT ASSISTANCE-Continued General and apecial funds-Continued Appalachian development highway NOA system ___________________ 507 Exp. Grants for local development dis- NOA tricts and for research and dem- Exp. onstration ________________ 507 Supplemental grants-in-aid ____507 NOA Exp. 100,000 39,888 ------------- ------------- ------------------------ ------------- ------------ Appalachian Act amendments of 1967 transfer this program to Appalachian regional development programs. 2, 7SO ------------- ------------- ------------ Appalachian Act amendments of 1967 transfer this program to 1,387 ------------- ------------- ------------ 29,993 ------------- ------------17,499 -----.------- ------------- ------------- ------------ Appalachian regional development programs. Appalachian Act amendments of 1967 transfer this program to Appalachian-regional development programs. 2,711 1,393 4,000 2,607 (Expenditures result from prior year obligations of the Area Redevelopment Administration.) Economic development revolving Exp. fund _____________________ 507 NL 2,225 -l0,915 -3,442 -7,858 -7,870 -8,130 -4,428 -272 (Negative expenditure results from collections and interest on loans outstanding exceeding interest costs payable to Treasury.) Total, economic development NOA LA assistance. Exp. NL 350,590 77,969 201,485 73,500 222,150 88,500 20,665 15,000 110,486 29,374 148,146 52,732 180,317 65,170 Miscellaneous expired accounts..507 Exp. Public enterprise funds: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I 32,171 12,438 ci> 0 ~ 0 f... PROMOTION OF INDUSTRY AND COMMERCE Business and Defense Services Administration General and special funds: Salaries and expenses. _______ 506 NOA 5,663 Exp• 5,942 NOA 11,358 Exp. 11,743 Salaries and expenses ( special NOA foreign currency program) __ 506 Exp. 200 84 200 NOA 5,093 Exp. 5,138 5,263 DJOS 5,354 NOA 16,651 16,965 19,469 19,025 ,-1 5,802 DJ4l 5,642 } 11,474 A2,195 D23! 11,434 A2,000 } 6,480 535 6,390 748 H22,000 8,099 Increases are to encourage business to participate in youth opportunity and equal employment programs, to meet increased applications for the duty-free importation of certain scientific equipment, and to undertake additional commodity and industry analyses. International Actiritiea Salaries and expenses. _______ 506 Export controL _____________ 508 Total, international activities_ Exp. 19,580 Al95 200 193 237 } } 6,341 ------------44 Program uses excess foreign currencies in developing countries to exhibit American products at trade fairs. 5,358 -10 Estimate provides for continued regulation of and surveillance 5,327 -27 27,558 25,295 8,089 6,270 over the export of strategic commodities. A Propo■ ed for ■eparate tran1mittal under ni■ting legi1lation, other than pay 1upplemental D Pro.POied for separate tranamittal, civilian pay act 1upplemental. H Include■ $166 thou■ and to carry out authorizing legi1lat1on to be propo■ed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Supplemental is to accelerate the export promotion program and provide 2 new U.S. trade centers, a new Government-industry program to develop overseas markets, and an export strategy planning staff. Increase for 1969 provides for participation in 10 additional trade fairs, 2 more trade centers, and expansion of the joint market development program. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I I 1967 enacted 1968 1969 estimate estimate 1 Explanation 1ncreasc or I decrease ( - ) DEPARTMENT OF COMMERCE-Continued Federal Funds-Continued PROMOTION OF INDUSTRY AND COMMERCE-Continued Office of Field Services General and special funds-Continued Salaries and expenses ________ 506 NOA 4,450 4,582 D114 Exp. 4,550 4,498 } 5,178 482 5,084 586 Increase will provide for additional support to the accelerated export promotion program and to meet increased printin g costs for the "Commerce Business Daily." Participation in U.S. Expositions HemisFair 1968 Exposition ___ 506 NOA Exp. 6,750 491 -------------------------4,073 5,182 I, 109 ------------ (This exposition runs from April to October 1968. Funds will be used to complete and operate the Federal exhibit.) Inter-American Cultural and NOA Trade Center _____________ 506 Exp. 5,866 ------------1,569 -----------1,056 513 ------------- (A permanent Federal exhibit scheduled to open in 1969 in Miami Fla., will include a Federal pavilion.) 1967 Alaska Centennial_ _____ 506 Exp. 151 4,311 247 22 -225 (1968 and 1969 expenditures cover dismantling and disposing of U.S. exhibits used during the 1967 celebration of the Centenni al of Alaska Purchase.) Participation in New York Exp. World's Fair _____________ 506 25 10 ------------- -10 (Fair closed in 1965. Expenditures are for settlement of outstanding obligations.) Participation in Century 21 Ex. Exp. position __________________ 506 1 44 ------------- -44 (Activity completed in 1962. Expenditures are for settlement of outstanding obligations.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ... co O> C0 Total, participation in U.S. NOA expositions. Exp. lZ, 616 ------------- 4,979 5,996 ------------------------3, 296 2,700 U.S. Travel Service Salaries and expenses ________ 506 NOA Exp. Z,975 4,678 1,703 3,047 2,750 4,500 I, 750 Total, promotion of industry NOA and commerce. Exp. 42,380 33,085 43,894 10,809 35,484 37,911 43,969 6,058 Salaries and expenses ________ 506 NOA lOZ, 486 104,839 DZ,265 E72 119,841 lZ,665 Exp. IOI, 178 105,875 114,818 8,943 Research and development_ __ 506 NOA ZO, SZl 24,000 0 412 E12 27,432 3,008 Exp. 22,049 22,815 22,640 -175 Research and development (spe- NOA cial foreign currency program) Exp. 506 500 750 500 -250 362 500 600 100 6,000 S,ZOO 3,ZOO -2,000 15,812 9,215 8,200 -1.015 3,000 Increase is for promotional activities and market research to encourage overseas residents to visit the United States. SCIENCE AND TECHNOLOGY Environmental Science Services Administration Facilities, equipment, and con- NOA struction _________________ 506 Exp. } } D Proposed for separate transmittal. civilian pay act supplemental. E Proposed for separate tranamittal, military pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase is for U.S. participation in world weather programs, improved weather observations and forecasts, and expanded oceanographic services. Provides for increased research on severe storms, weather modification, air-sea interaction, and electromagnetic spectrum utilization. Decrease reflects discontinuance of support for the worldwide standardized seismograph network. Provides for modernizing weather and marine equipment, and overhauling aircraft used in hurricane research. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Explanation Account and functional code DEPARTMENT OF COMMERCE-Continued Federal Funds-Continued SCIENCE AND TECHNOLOGY-Con. Environmental Science Services Administration-Continued General and special funds-Continued 26,984 28,100 27,000 -1, 100 36,308 29,812 30,560 748 156,491 165,650 177,973 12,323 175,709 168,217 176,818 8,601 Salaries and expenses ________ 506 NOA 37,047 38,022 42,742 3,920 Exp. 36,406 41,893 2,943 Advances and reimbursements_506 Exp. 17 Satellite operations __________ 506 NOA Exp. Total, Environmental Science NOA Exp. Services Administration. Covers continued operation of a satellite system to observe mete orological conditions. Patent Office D800 38,950 Increase reflects additional patent examiners and rental of new office space. Processing of patent applications is estimated a t 100,000 in 1968 and 104,000 in 1969. lntragovernmental funds: Total, Patent Office _________ ------------- ------------- ------------ NOA Exp. 37,047 38,822 42, 742 3,920 36,424 38. 950 41,893 2,943 NOA 31,076 31, 725 36,839 4,327 National Bureau of Standards General and special funds: Research and technical services 506 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A80 D707 Exp. 32,380 32,328 A55 } 35,891 A25 } 3,533 Supplemental in 1968 is for implementing the 1967 amendments to the Flammable Fabrics Act. Increase in 1969 will strengthen research on physical and technological standards. Research and technical services NOA (special foreign currency pro- Exp. gram) ____________________ 506 so0 342 so0 -----------157 500 243 400 Z40 1,300 Continued support will be given to e1forts to develop 1tandard reference data and reference materials. Plant and facilities ___________ 506 NOA Exp. 2,587 Construction of facilities _____ 506 NOA Exp. 10,571 Civilian industrial technology _506 Exp. 512 274 95 -179 ( Contract and grant programs in textile research are being completed.) Salaries and expenses, Office of Exp. Technical Services _________ 506 9 -5 -----~------- 5 (This activity was previously transferred to Research and technical services.) Working capital fund ________ 506 Exp. 4,669 1,138 174 -964 (Estimated Government equity in the fund will be $173.8 million by June 30, 1969.) Total, National Bureau of NOA Standards. Exp. 51,070 33,326 33,252 lntragovernmental fundaz 550 1,200 1,579 500 1,060 -1,079 -------------4,240 6,240 ------------2,000 ------------ 38,639 41,852 39,085 lncreaae is for large equipment acquisitions and initial funding for relocation of standard frequency broadcast facility. (The 1967 budget provided the final increment of the Gaithersburg construction program.) 5,387 -2, 767 Office of State Technical Services General and apecial fund■ : Grants and expenses _________ 506 NOA Exp. 2,733 Total, science and technology_ NOA Exp. 265,936 A 5,497 232,361 6,485 F6,600 5,570 5,800 230 244,209 265,954 21,745 254,589 263,596 115 9,007 Propo1ed for separate transmittal under e:r.iating legislation. other than pay supplemental. D Proposed for aeparate transmittal. civilian pay act supplemental. • To carry out authorizing legislation to be propoaed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The increaae provides for an expanded program of making scientific findings available to private enterprise. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I (- ) Idecrease Explanation DEPARTMENT OF COMMERCE-Continued ~ Federal Funds-Continued t'.l OCEAN SHIPPING tl:I c::j Maritime Administration t::, General and apecial funda-Continued Ship construction ____________ 502 NOA Exp. Operating-differential subsidies: Contract authorization (perma- NOA nent, indefinite) _________ 502 Liquidation of contract authorization. Exp. 106,685 81,946 143,000 88,000 FU9,800 76,000 196,936 213,000 213,000 (175,000) 175,632 (200,000) 200,192 F (206,000) 7,500 6,217 9,575 8,912 F6, 700 NOA Exp. 15, 701 15,550 15,871 15,225 Maritime training ___________ 502 NOA 4,559 4,620 Exp. 4,188 360 Research and development ___ 502 NOA Exp. Salaries and expenses ________ 502 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ----------(1,275) 1,584 -----------(6,000) 5,808 Estimate provides construction-differential subsidies for IO new ships. In 1969, 14 subsidized operators, using an average of 289 ships, will male 1,754 voyages, the same number as in 1968. 16,275 15,427 404 202 Programs for administration and reserve fleet will continue at approximately the 1968 level. FS, 177 457 Increase is for additional personnel and essential maintenance costs at the Merchant Marine Academy. 5,285 4,664 -621 500 1,275 F625 1,Z75 125 (1,275) 1,773 F (1,275) } 1,894 -----------121 ~ >tj .... > t"' 8,158 cs 0 Ul Continued operation of the NS "Savannah," and a shift to longer term research projects such as competitive merchant ships. I >tj C') -2,875 -754 D95 State marine schools _________ 502 NOA Contract authorization (perma- NOA nent, indefinite). Liquidation of contract authorization. Exp. 206,000 -23,200 -12,000 0 t'.l 1-:3 Provides for increased maintenance costs on training ships. 5 federally provided ><I t'.l > ~ .... '° '° O> Sale of vessels, Merchant Marine Act: Repayments deposited in general fund ______________ 502 LA NL I -7, 530 -6,500 -6, 000 500 Federal ship mortgage insurance Exp. fund _____________________ 502 NL -4,442 -1,086 -4,046 -1,479 -4,915 -1,478 -869 1 Vessel operations revolving fund Exp. 502 2,522 625 -1, 973 -2, 598 War risk insurance revolving fund Exp. 502 -170 -327 -361 -34 Advances and reimbursements_502 Exp. I, 357 I, 813 ------------- Total, Maritime Administra- NOA tion. LA Exp. NL 331,741 -7,530 284,384 -8,616 l I Public enterprise funds: : (Guarantees involving a contingent liability of $796 million are estimated to be outstanding at the close of 1969.) (Fund is substantially self-supporting.) (Contingent liability in the event of war 1s estimated at $13 billion.) lntragovernmental funds: 387,941 -6,500 317,452 -7,979 -1,813 362,852 -6,000 304,894 -7,478 -25,089 500 -12,558 501 4,475 4,200 4,475 4,200 FOREIGN DIRECT INVESTMENT CONTROL General and special funds: Salaries and expenses ________ 508 NOA Exp. C D F I ----------- ------------------------- ----------- Proposed for separate transmittal, wage-board supplemental. Proposed for separate transmittal, civilian pay act supplemental. To carry out authorizing legislation to be proposed. Includes $5, 279 thousand to carry out authorizing legislation to be proposed, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Provides for a program of mandatory controls to restrict U.S. direct investment abroad. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 estimate I 1969 estimate I decrease Increase or I ( -) Explanation DEPARTMENT OF COMMERCE-Continued Federal Funds-Continued Subtotal, Federal funds _____ NOA LA Exp. NL 991,502 70,439 728,623 20,758 911,582 67,000 804,787 44,753 950,79S 82,500 846,796 57,692 39,213 15,500 42,009 12,939 Total Federal funds are distributed as follows: 1968 NOA Enacted ____ Repayments (A) _______ ( C) _______ ( D) _______ ( E) _______ 903,340 --------2,275 5 5,878 84 LA E,cp. 73,500 -6,500 --------------------------------- 797,105 --------2,055 NL 51,253 -6,500 -------- 5 -------5,543 -------79 -------- 1969 Transmittecl Repayments (A) _______ ( D) _______ ( E ) _______ NOA LA E,cp. 950,795 88,500 -6,000 846,236 NL 63,692 -6,000 ----------------220 ---------------- --------335 ---------------- --------5 ---------------- --------- Trust Funds GENERAL ADMINISTRATION Gifts and bequests (permanent) _506 NOA Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 139 57 ss 91 S2 53 -3 -38 Fund receives gifts in furtherance of programs in the Department BUSINESS ECONOMICS AND STATISTICS Bureau of the Census Special statistical work (permanent) NOA 506 Exp. 3,687 4,0ZZ 4,324 4,158 3,230 -792 3,765 -393 A reduction is anticipated in special censuses performed at cost for State and local governments. ECONOMIC DEVELOPMENT ASSISTANCE Economic Development Administration Federal action planning commis- NOA sions' trust fund (permanent) _507 Exp. 667 7,620 6,761 -859 42 4,911 6,060 1,149 IS 22 8 13 II 15 919 738 1,004 948 934 1,012 959 Fund is used to finance planning commissions' operating expenses and technical assistance projects. PROMOTION OF INDUSTRY AND COMMERCE Business and Defense Services Administration Special statistical work (perma- NOA nent) _______________________ 506 Exp. s Estimates reffect anticipated increase in public demand for special statistical work. 1,895 891 1,490 542 American businessmen participating in trade fairs and trade center shows share the cost through a system of fees. Estimates reRect an increase in the number of planned events. 1,908 1,505 546 4 International Activities Contributions, educational, and cul- NOA tural exchange (permanent) 506 Exp. Total. promotion of industry NOA and commerce. Exp. 760 896 A Proposed for separate transmittal under exiating legislation. other than pay supplemental. C D E Proposed for separate transmittal. wage-board aupplemental. Proposed for separate transmittal, civilian pay act supplemental. Propoaed for separate transmittal, military pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate eatimate 1 Explanation 1 ncrease or I decrease ( - ) DEPARTMENT OF COMMERCE-Continued Trust Funds-Continued SCIENCE AND TECHNOLOGY Environmental Science Services Administration special statistical work 151 174 179 s 160 158 168 10 1,688 1,840 Z,040 zoo 1,969 I, 824 2,023 199 NOA 1,839 z, 014 z, 219 zos Exp. 2, 129 1,982 2,191 209 (permanent) NOA 506 Exp. Payments from non-Government sources finance special statistica studies. National Bureau of Standards National Bureau of Standards trust NOA fund (permanent) ____________ 506 Exp. Total, science and technology Proceeds from the sale of documents are an offset to the cost o preparing transcripts of scientific reports. OCEAN SHIPPING Maritime Administration Federal ship mortgage insurance es- NOA 8,333 94,ZOO 119,500 ZS,300 crow fund (permanent) .•••••502 Exp. 17,792 46,622 74,928 28,306 NOA 15,599 108,923 133,670 24,747 Exp. 25,104 58,723 88,502 29,779 Subtotal, trust funds _________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase results from new deposits for vessel construction and reconstruction. Adjustments lnterfund and intragovernmental NOA transactions. ______________ .500 Exp. } -667 -7,620 -6,761 859 Applicable receipts from the public NOA 500 Exp. 850 NOA Exp. } -33,391 } -2,771 -116,017 -130,8-12 -14,825 -2,500 -2,200 300 Repayments deposited in general LA fund (included in details above). NL }(-7,530) (-6,500) (-6,000) (500) 970,272 70,439 716,898 20,758 894,368 67,000 944,662 50,294 15,500 737,373 44,753 795,495 57,692 Total, Department of Com- NOA merce. LA Exp. NL 82,500 58,122 12,939 Totals for the Department are distributed as follows: 1968 NOA Enacted ••• ___ Repayments.. (A) _______ ( C ) _______ (D) _______ ( E ) _______ 886,126 2.275 5 5,878 84 LA Exp. 73,500 729,691 -6,500 ... _______ 2,055 --------5 --------5,543 ---------79 --------- NL 51,253 -6,500 1969 NOA Transmitted__ Repayments.. (A) _______ (D) ______ ( E ). ______ A Propoaed C Propo1ed D Proposed E Propoaed for for for for 1eparate aeparate aeparate separate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tran1mittal tranamittal, tran1mittal. transmittal. under niating legi,lation. other than pay 1upplemental. wage•board 1upplemental. civilian pay act supplemental. military pay act 1upplemental. 944,662 LA 88,500 -6,000 Exp. 794,935 ------------·---220 --------- --------335 --------- --------5 --------- --------- NL 63,692 -6,000 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted 1969 eatimate 1968 eatimate 1 Explanation 1ncreaae or I decrease ( - ) DEPARTMENT OF DEFENSE-MILITARY Federal Funds t-3 ~ MILITARY PERSONNEL td c:j \::t (Functional code 051) 0 l'-1 General and special funds, Military personnel, Army________ NOA 6,821,064 7,760,300 E205, 915 J-90,500 7,770,000 Exp. 6,696,371 Military personnel, Navy________ NOA 3,926,436 Exp. 3,854,683 4,o25'.ooo Military personnel, Marine Corps_ NOA 1,259,400 Exp. 1,228, 157 1,396,300 E37, 523 J-10,000 1,375,000 Military personnel, Air Force ____ NOA 5,419,200 Exp. 5,274,973 Reserve personnel, Army ________ NOA 292,311 Exp. 261,514 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4,029,100 E 116,012 J20 900 } } } 5,619,300 E 161,661 J-54,200 5,680,000 } 297,200 E 7,245 J-14,200 275,000 } 8,136,000 260,285 8,060,000 290,000 4,340,000 173,988 4,300,000 275,000 1,480,000 56,177 1,460,000 85,000 5,830,000 103,239 5,780,000 100,000 303,400 13,155 283,000 8,000 Increase reAects higher pay and support coats, and a rise of 23,872 in average strength. t-3 "'.! 0 :,:i Increase reAects higher pay and support costs, and a rise of 25,741 in average strength. "'.! .... U2 C'.l > t< '<I Increase reAects higher pay and support costs, and a rise of 16,929 in average strength. l'-1 > :,:i .... <0 a, Increase reAects higher pay and support coats, offset in part by a decline of 13,848 in average strength. Increase reAects larger nonprior service enlisted training level. Program provides year-end paid drill strength of 260,000 in both 1968 and 1969. <0 Reserve personnel, Navy________ Reserve personnel, Marine Corps_ Reserve personnel, Air Force..____ NOA 113,400 116,100 E 3,880 Exp. 112,098 118.000 NOA 37,300 38,300 E 937 Exp. 37,417 37,000 NOA 70,800 72,300 1,900 -1,000 E J National Guard personnel, Army_ Exp. 64,369 65,000 NOA 353,333 345,000 10,127 -32,500 E J Exp. 342,320 3I0,000 National Guard personnel, Air NOA Force. 84,200 87,600 E2,800 -1,000 Exp. 84,583 85,000 NOA 1,839,000 2,020,000 E 52,000 Exp. 1,830,233 2,060,000 1 Retired pay, Defense___________ } NOA 20,216,444 Exp. 19,786,720 } https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5,000 31,500 -7, 737 31,000 -6,000 75,800 2,600 68,000 3,000 321,300 -1,327 306,000 -4,000 96,000 6,600 94,000 9,000 2,275,000 203,000 2,265,000 205,000 23,000 23,000 } } 22,199,000 21,800,000 Proposed for separate transmittal. military pay act supplemental. Propoaed tranafer, other than pay 1upplemental. 123,000 } B Proposed for separate transmittal under proposed legislation. E J 5,020 } Servicemen's group life insurance NOA ----------- ------------(proposed legislation)_________ Exp. ----------- ------------Total, military personnel____ 125,000 8 B23,000 23,037,000 22,793,000 23,000 838,000 993,000 Program provides year-end paid drill strength of 126,000 in both 1968 and 1969, but a somewhat higher grade level in 1969. Program provides year-end paid drill strength of 48,000 in both 1968 and 1969, but a substantially reduced nonprior service enlisted training level in 1969 because of lower personnel losses. Increases in basic military and other training costs more than offset reduction in year-end paid drill strength to 47,840. Reduction reflects lower average strength largely offset by larger nonprior service enlisted training level. Program provides year-end paid drill strength of 400,000 in both 1968 and 1969, but lower average strength in 1969. Increase in training costs more than offsets reduction in year-end paid drill strength to 84,232. Increase reflects an average of 680,740 retired personnel in 1969, compared with 622,820 in 1968. Legislation will be proposed to increase the benefits under Servicemen's Group Life Insurance. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)--Continued DEPARTMENT OF DEFENSE-MILITARY-Continued Federal Funds-Continued 1-3 ~ OPERATION AND MAINTENANCE l"'.I td (Functional code 051) c:1 General and apecial funds-Continued Operation and maintenance, Army NOA Exp. 7,291,048 7,057,.535 Operation and maintenance, Navy NOA 4,662, S94 Exp. 4,676,440 maintenance, NOA 431,0S2 Exp. 379,628 Operation and maintenance, Air NOA Force. S, S98, IZZ Operation and Marine Corps. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6,941, 49S A 1,160 D SI, S97 J 9SO, 000 7,713,840 A 1,160 4,652,216 A 441 D 38,SOO J 232,000 4,574,559 A 441 391,440 A 93 D 1,8S7 J 7,200 399,907 A 93 l l l } } 2,499 I D 40, 1861 J 327,100 260,748 Increase reflects support costs for higher force level and activities in Southeast Asia. ..,, >tj 0 } 8,193,000 ~"""' '] A 8, 20S, 000 ti 0 l"'.I l;d 478,000 >tj .... s, 702,200 779,043 5,486,000 911,000 437,600 37,010 427,000 27,000 6,742,000 1, 00S, 686 Increase primarily reftects a greater number of ships and aircraft scheduled for overhaul in 1969, and inclusion of materials previously financed in procurement appropriations. U2 Q > t< Ml l"'.I > l;d Increase reflects .support costs for higher force level, activities in Southeast Asia, and inclusion of materials previously financed in procurement appropriations. Increase reftects inclusion of materials previously financed in procurement appropriations. ... <0 °'<0 Exp. 5,469,613 5,582,501 A 2,499 Operation and maintenance, De- NOA fense agencies. 915,117 945,445 A 100 D 22,979 J 17, 100 Exp. 900,063 953,900 A 100 Operation and maintenance, Army NOA National Guard. 231,000 241,000 D3, 128 J-I,300 } 6,481,000 896,000 I, 077, 600 91,976 } 1,030,000 76,000 266,964 24,136 I Increase reflects higher personnel costs and increases in contract administration services and communications. >-3 Exp. 235,059 240,000 Operation and maintenance, Air NOA National Guard. 254,700 272,570 DJ, 723 Exp. 242,775 260,000 National Board for the Promotion NOA of Rifle Practice, Army. Exp. 494 428 D5 507 430 Claims, Defense ________________ Indefinite ____________________ Contingencies, Defense __________ Court of Military Appeals _______ A D J J_400 } } 260,000 20,000 302,000 28,107 290,000 30,000 20 NOA 34,000 30,000 ------38,000-} NOA ----------- ------------30,000 37,500 Exp. 33,298 -433 Increase provides for additional flying hours and inclusion of material, previously financed in procurement appropriations. t'i 8,000 No funds are requested for 1969. 15,000 10,000 15,000 5,000 153 3,000 5,000 2,000 NOA 600 602 D 15 636 19 Exp. 562 600 630 30 l:d > t" l:d 0 0 l:d ~ An increase in the number of claims filed by private parties is expected. 7,500 NOA Exp. t'i t:i t'i l,:j -410 Proposed for separate transmittal under existing legislation. other than pay supplemental. Proposed for separate transmittal, civilian pay act supplemental. Proposed transfer, other than pay supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis p:1 >zj }------------ } Increase provides additional equipment and civilian technicians required for reorganization of force structure. td ><l > 0 This amount provides the Secretary of Defense with funds to meet emergencies and extraordinary expenses. t'i z0 ><l Increase supports a greater caseload arising from higher military population. t).:) -.;i ..... Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1 ncrease or I decrease ( - ) DEPARTMENT OF DEFENSE-MILITARY-Continued Federal Funds-Continued OPERATION AND MAINTENANCE-Con. (Functional code 051 )-Continued General and apecial funds-Continued Miscellaneous expired accounts ___ Exp. Federal employee status for ci- NOA vilian technicians, and increased Exp. travel allowances (proposed legislation), Total, operation and mainte- NOA nance, Exp. 4,620 2,850 36,970 ----------- ----------------------- ------------- -34, 120 B 52,000 52,000 8 47,000 47,000 19,433, 727 20,547, 708 22,839,000 2,291,292 19,000,253 19,800,000 22,260,000 2,460,000 Procurement of equipment and NOA missiles, Army. 5,598,300 5,462,500 0 3, 185 J -409, 500 Exp. 4,389,955 5,120,000 and NOA 3,483,900 2,939, 100 D251 Exp. 2,999,403 3,350,000 Legislation will be proposed to provide Federal employee statu for civilian technicians of the Army and Air National Guard and an increase in travel allowances for military personnel. PROCUREMENT (Functional code 051) Procurement of missiles, Navy, aircraft https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J 626, 000 569,815 5,708,000 588,000 } K 5, 222, 000 276,349 3,300,000 -50,000 } F 3, 6,300 Increase is primarily for the Sentinel System and combat suppor of Southeast Asia operations. Increase for aircraft, helicopters, and missiles more than offsets financial adjustment. The 1969 program includes 720 aircraft compared with 521 in 1968. Shipbuilding Navy. and conversion, ~ i NOA 1, 756, 700 Exp. I, 398,415 NOA 2,255,300 Exp. I, 668,203 NOA 515,900 1,297,000 } F 1, 712, 300 n2, 315 J-233 200 1, 170:000 646,185 1,651,000 481. 000 2, 336, 000 } 2, 719, 000 DJ, 038 J-160 800 542,762 Increase is primarily for conversion of ballistic missile submarines to carry Poseidon, for the first new-design nuclear destroyers and general-purpose assault ships, and for fast deployment logistic ships. 0 0 Other procurement, Navy_______ Procurement, Marine Corps_____ 2, 603, 000 413,000 L735, 000 82,200 650,000 130,000 5,493,400 } F4,612,000 -222, 700 -658, 700 2, 190: 000 1 Aircraft procurement, Air Force__ Exp. 411,314 NOA 5,316,300 665,000 } -12, 200 520,000 1 Exp. 4,842,449 5, 260, 000 5, 231, 000 -29,000 Missile procurement, Air Force___ NOA 1,234,500 1, 340, 000 } F 1, 768, 000 412,900 Other procurement, Air Force____ Exp. I. 278,051 NOA 2,658,600 1 15, 1 Procurement, Defense agencies___ Exp. I, 975,862 NOA 51,300 Exp. B D F J K L 40,706 100 1, 320, 000 1, 550, 000 230,000 2,429,800 -280, 900 2,763,000 614,100 2,495,000 2,702,000 207,000 96,700 52,600 50,000 5,000 38,000 } 1 6,100 45,000 Proposed for separate transmittal under proposed legislation. Proposed for separate transmittal. civilian pay act supplemental. To carry out authorizing legislation to be proposed, Proposed tranafer, other than pay supplemental. Includes $1,991.013 thousand to carry out authorizing legislation to be proposed. Includes $24,300 thousand to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase reflects inclusion of ship alteration program previously funded ir, Operation and maintenance, Navy; and procurement of modern ordnance and equipment. Increase reflects additional combat support of Southeast Asia operations. Decrease reflects financing adjustment, reduced spares and trainer aircraft, and lower support requirements which are partially offset by increases for aircraft and aircraft modifications. The 1969 program includes 919 aircraft compared with 1,078 in 1968. Increase reflects procurement of Minuteman Ill ballistic missiles, tactical missiles, and other support activities. Increase mainly reflects munitions requirements for Southeast Asia. Increase reflects procurement of data processing a.nd associated equipment for defense agencies. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1ncrease or I decrease ( - ) DEPARTMENT OF DEFENSE-MI LIT ARY-Continued Federal Funds-Continued PROCUREMENT-Continued (Functional code 051)-Continued General and special funds-Continued Aircraft and related procurement, Exp. Navy. Total, procurement_ ________ 7,499 ------------- ------------- NOA 22,870,800 Exp. 19,011,857 20, 715, 789 21,470,000 ------------ 23,254,000 23,445,000 2,538,211 1,975,000 1,661,900 208,509 1,650,000 220,000 '"•'°' 299,149 (Obligated balance transferred to Miscellaneous expired ac counts.) RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (Functional code 051) Research, development, test, and NOA evaluation, Army. 1,597,448 Exp. 1,633,950 Research, development, test, and NOA evaluation, Navy. 1,918,978 Exp. 1,791, JOI https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,545,236 0 8,155 J -100,000 1,430,000 } F 1,833,177 A3 ] 'Z, D8,271 J5,800 1,904,997 } 2,130,000 A3 225,000 Increase supports work on antiballistic missile defense, othe missile systems, and conventional ordnance. Increase supports development of the VSX antisubmarine air craft, contract definition of several new fleet escort ships, and improvement of fleet air defense weapons. .... <O O> <O Research, development, test, and NOA evaluation, Air Force. 3,171,751 Exp. 3,229,192 Research, development, test, and NOA evaluation, Defense agencies. Exp. 484,280 Emergency Fund, Defense_______ NOA Exp. 3,255,943 AZI 0 8,728 JJ0S,000 3,396,979 A21 505,424 450,135 0 940 468,000 3 23,982 j''·''°·"" 197,608 } 3,500,000 103,000 } FSOZ,600 51,SZS 490,000 22,000 FIZS,000 30,000 101,018 30,000 ----------- ------------7,172,460 7,159,668 7,148,391 7,200,000 8,006,Z00 7,800,000 857,809 600,000 NOA 402,514 } M688,300 314,515 Exp. 447,157 372,ZZS D1,557 780,000 594,000 -186,000 NOA 266,918 } N367,000 -IZ0,619 Exp. 519,096 486,661 D958 170,000 350,000 180,000 NOA 401,495 } Z66,000 -135,231 Exp. 536,856 400,662 D569 554,000 425,000 -129,000 Total, research, development, NOA Exp. test, and evaluation. Increase is primarily for the orbiting laboratory (MOL) and other space programs, the airborne warning and control system, and the FX tactical fighter. Increase reffects materials research, communications, and nuclear weapons effect• research. Funds are transferred to other appropriations for prompt exploitation of research and development opportunities. The 1968 amount is the current balance after such transfers. MILITARY CONSTRUCTION (Functional code 051) Military construction, Army _____ Military construction, Navy _____ Military construction, Air Force __ 0 Proposed for separate transmittal under existing legislation. other than pay supplemental. Proposed for aeparate transmittal. civilian pay act supplemental. 11' To carry out authorizing legislation to be proposed. J Proposed transfer, other than pay supplemental. M Includes $616,3.52 thousand to carry out authorizing legislation to be proposed. N Includes $32.5,0.51 thousand to carry out authorizing legislation to be proposed, O Includes $226,227 thousand to carry out authorizing legislation to be proposed, A D https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase is primarily for Sentinel System facilities. Decrease mainly reffects reduced funding for troop housing. Decrease reffects reduced funding for troop housing and maintenance facilities. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate ea ti mate 1 Explanation 1ncrease or I decrease ( -) DEPARTMENT OF DEFENSE-MILITARY-Continued Federal Funds-Continued MILITARY CONSTRUCTION-Con. (Functional code 051)-Continued General and apecial funda-Continued Military construction, agencies. Defense NOA Exp. Military construction, Army Na- NOA tional Guard. Exp. Military construction, Air Na- NOA tional Guard. Exp. Military construction, Army Re- NOA serve. Exp. 9,146 12,963 ----------653 114,540 27,000 PSS,400 -29,140 22,000 Decrease reflects reduced contingency funding for construction 49,000 3,000 6,000 F2,700 9,000 -300 3,000 Obligation levels of $10 million in 1968 and 1969 include com pletion of prior year projects. } FS,300 -1,213 } 9,400 9,500 8,155 9,000 9,000 3,000 F3,000 -3 2,000 4,000 2,000 FS,000 6,000 -969 F4,300 387 4,000 -1,000 ----------40 D13 D3 Military construction, Naval Re- NOA serve. Exp. 5,400 3,543 5,000 6,969 Military construction, Air Force NOA Reserve. Exp. 3,600 3,900 5,278 5,000 Loran stations, Defense _________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. ----------1,839 D13 3,600 5,031 } ------------- ------------- Obligation levels of $10 million in 1968 and $14 million in 1969 include completion of prior year projects. ------------ -3,600 -5,031 Obligation levels of $4.8 million in 1968 and $8.3 million in 19(>9 include completion of prior year projects. Ohligation levels of $8.8 million in 1968 and $8.2 million in 1969 include completion of prior year projects. Ohligation levels of $5 million in 1968 and 1969 include comple tion of prior year projects. Additional facilities are not required for this navigation system in 1969. Total, military construction_ 1,430,000 1,450,000 Z4,796 -115,000 F589,700 -81,767 555,000 37,000 20,000 2,000 Fll,800 15,000 -8,200 13,000 601,500 570,000 -89,967 50,000 55,200 57,600 -10,900 -3,400 Decrease reflects reductions in training and education programs, and grants for supplies and equipment. 1,600 Increase provides for increased cost of shelter planning and development services. NOA Exp. 1,098,474 1,535,579 1,405,Z04 1,565,000 NOA 507,196 Exp. 481,585 671,Z71 D196 518,000 FAMILY HOUSING (Functional code 051) Family housing, Defense ________ Homeowners assistance fund, De- NOA Exp. fense. Total, family housing _______ ------·---- -·--------- } NOA Exp. 507,196 481,585 691,467 520,000 Operation and maintenance, civil NOA Exp. defense. 66,099 65,432 66,100 61,000 Research, shelter survey and mark- NOA ing, civil defense. Exp. 35,000 33,866 20,000 31,000 21,600 31,000 Construction of facilities, civil de- Exp. fense. 759 1,000 400 -600 Total, civil defense_ ________ NOA Exp. 101,099 100,058 86,100 93,000 76,800 89,000 -9,300 -4,000 Decrease primarily reflects reduced new construction. Decrease reflects carryover of funds from 1968. CIVIL DEFENSE (Functional code 051) D Q Proposed for separate transmittal, civilian pay act supplemental. F To carry out authorizing legislation to be proposed. P Q Includes $83,700 thousand to carry out authorizing legislation to be proposed. Includes $20.130 thousand to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ------------ (Decrease reflects construction completion.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)--Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Explanation 1ncreaae or I (- ) 1 decrease DEPARTMENT OF DEFENSE-MILITARY-Continued ederal Funds-Continued SPECIAL FOREIGN CURRENCY PROGRAM (Functional code 051) G eneral and apecial funda-Continued Special foreign currency program_ NOA 7,348 Exp. II 11,200 J-U,200 2,000 -730 430 } 12,800 12,800 6,000 4,000 -565 -535 165 -965 Increase reflects financing in 1969 of undertakings deferred from 1968 and greater use of excess foreign currency. REVOLVING AND MANAGEMENT FUNDS (Functional code 051) Public enterpri■e funda: Defense production guarantees ___ Exp. NL -1,048 311 Laundry service, Naval Academy_ Exp. -23 Civil defense procurement fund __ Exp. -I NOA 351,000 ------------- ------------- ------------------------ ------------- -·---------- ntragovernrnental fund■ : Army stock fund _______________ -- J Contract authorization (perma- NOA Exp. nent, indefinite). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 123,672 76,712 -=:=_ }------------------------ -165,700 -181,000 -15,300 (A reduction in the purchase of defaulted loans is expected.) ( Collections are expected to offset expenditures.) (No activity is forecast.) (Sales are expected to exceed purchases in 1969.) Navy stock fund _______________ NOA Contract authorization (perma- NOA nent, indefinite). Exp. Marine Corps stock fund (con- NOA tract authorization) (perma- Exp. nent, indefinite). Air Force stock fund (contract NOA authorization) (permanent, in- Exp. definite), Defense stock fund _____________ NOA Contract authorization (perma- NOA nent. indefinite). Exp. 77,000 77,045 49,884 }------------ ------------- ------------24,000 -472,000 (Decrease reflects sale of inventory without replacement.) -448,000 30,671 ------------- ------------- ------------ (Sales are expected to exceed purchases in 1969.) 50,408 3,000 -26,000 -29,000 13,504 ------------- ------------- ------------ (Decrease reflects sale of inventory without replacement.) 9,537 -16,000 -617,000 -601,000 >-3 ~ trl 107,000 233,654 118,400 431,685 117,400 -------------375,000 -118,400 Sales are expected to exceed purchases in 1969. lzj trl t:i -492,400 trl l:O Army industrial fund ___________ Exp. -109,464 528,000 Navy industrial fund ___________ Exp. 105,818 1,027,600 Air Force industrial fund ________ Exp. -69,445 -72,400 -36,500 35,900 (Increase reflects funding of depot maintenance.) Defense industrial fund __________ Exp. 2,159 -1,800 11,000 12,800 (Increase reflects one-time prepaid charges for expansion of automatic switch networks.) 46,900 -481, JOO (Decrease caused by refunds in 1968 of prepayments received from customers for prior year's orders.) -21,300 -1,048,900 (Decrease caused by refunds in 1968 of prepayments received from customers for prior year's orders.) Army management fund _________ Exp. -22, 136 8,200 Navy management fund _________ Exp. -3,935 -9,000 56,000 65,000 Air Force management fund _____ Exp. -5,818 5,000 1,000 -4,000 Naval working fund ____________ Exp. -2,627 J ------------- -8,200 ------------- ------------- ------------ (Fund will operate at $643 million level in 1969.) (Increase reflects lag in collections.) > t< 'ti l:O 0 0 l:O ~ t,:j ~ > 0 trl z 0 ~ (Liquidation of prior year obligations continues.) (Estimate reflects activity of $18 million in 1969.) Proposed transfer, other than pay supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1:-.,j --.:( ~ ts:> 00 0 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted 1968 1969 ea ti mate estimate 1 Explanation 1ncreaae or I decrease ( -) DEPARTMENT OF DEFENSE-MI LIT ARY-Continued Federal Funds-Continued REVOLVING AND MANAGEMENT FUNDS--Continued (Functional code 051 )-Continued lntragovernmental funda-Continued Consolidated working funds, Army Exp. Total, revolving and management funds. NOA Exp. NL Subtotal, Federal funds _____ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. NL 6 ------------- ------------1,013,546 511,712 311 7Z,4Zl,09Z 67,587,440 311 ------------ (Account will be inactive in 1969.) 118,400 ------------- -118,400 1,399,570 -1,614,465 -3,014,035 -535 -965 430 7Z,91Z,059 73,849,570 430 79,257,300 76,798,535 -535 6,345,Z41 2,948,965 -965 Total Federal funds are distributed as follows: /968 Enacted ________ NOA 72,111,560 (A) ___________ 4,317 ( D) ___________ 196,182 ( E) ___________ 600,000 Exp. 73,063,402 4,317 185,440 596,411 NL 430 ------------- /969 NOA Transmitted ____ ( B) ___________ ( D) ___________ ( E) ___________ 79,182,300 75,000 ------------------- Exp. 76,714,204 70,000 10,742 3,589 NL -535 --------- ----- Trust Funds DEPARTMENT OF THE ARMY Army trust funds (permanent) __ 05 I NOA Exp. 798 399 19 -380 13,242 2,367 23 -2,344 DEPARTMENT OF THE NAVY Navy trust funds (permanent) __ 05 I NOA Exp. 7,ZZS 7,308 7,244 -64 7,003 7,276 7,3IO 34 11 3 5 7 7 7 Decrease reAects termination of funding of joint development of the main battle tank with the Federal Republic of Germany through this account. Funds are used for the benefit of naval personnel. DEPARTMENT OF THE AIR FORCE Air Force general gift fund (perma- NOA nent) ______________________ 05 I Exp. Subtotal, trust funds________ 4 ------------ NOA Exp. 8,034 7,710 7,270 -440 20,250 9,650 7,340 -2,3(0 lnterfund and intragovernmental NOA transactions _________________ 050 Exp. } -7,050 -7,/00 -7, /00 Adjustments AProposed Proposed Proposed EProposed B D for for for for separate separate separate separate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis transmittal transmittal transmittal. transmittal, ------------ under existing legislation. other than pay supplemental. under proposed legislation. civilian pay act supplemental. military pay act aupplemental. Increase reAects gifts which are limited by the donors to specific purposes. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1 ncrease or I decrease ( -) DEPARTMENT OF DEFENSE-MI LIT ARY-Continued Adjustments-Continued Applicable receipts from the pub- NOA }-132,927 lie ________________________ .050 Exp. -1,727 850 NOA Exp. } Total, Department of De- NOA 7Z,Z87,4ZZ Exp. 67,465,986 fense-Military. NL 311 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -155,841 -/38,939 16,902 -2, 172 -2, 174 -2 72,754,656 79,116,357 6,361,701 73,694, !07 430 76,657,662 -535 2,963,555 -965 Totals for the Department are distributed as follows: 1968 NOA Enacted ________ 71. 954, 157 4,317 (( D) A) ___________ ---------( E ) ___________ 196,182 600,000 Exp. 72,907,939 4,317 185,440 596,411 NL 430 ---------------- /96Q Transmitted ____ ( B) ___________ ( D) ___________ ( E ) ___________ NO" Exp. NL 79,041,357 75,000 76,573,331 70,000 IO, 742 3,589 -535 ------------------- ---------------- DEPARTMENT OF DEFENSE-CIVIL Federal Funds DEPARTMENT OF THE ARMY Cemeterial Expenses General and special funds: Salaries and expenses ________ 805 NOA Exp. 17,148 14,798 Zl,ZOO 15,652 19,269 17,252 -5,548 -2.017 Reduction reflects decrease in Arlington Cemetery construction and land development. Corps of Engineers-Civil General investigations _______ -401 Construction, general_ ______ -401 Operation and maintenance, generaL ____________________ -401 Flood control and coastal emergencies ___________________ 401 Proposed Proposed Pl'oposed Proposed E Proposed A B C D for for for for for separate separate separate separate separate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. 28,257 NOA Exp. 986,179 967,330 923,300 NOA 178,900 190,000 c Z,400 DI ,825 E9 223,70 29,466 Exp. 176,750 194.300 224,000 29,700 NOA Exp. transmittal transmittal transmittal. transmittal, transmittal, 32,450 965,955 34,445 38,000 967,599 7,000 ------------- 6,022 37,100 35,000 9,500 904,000 l 5,000 5,000 2,655 3,000 -63,599 -44,030 5,000 -4,500 under existing legislation, other than pay supplemental. under proposed legislation. wage-board supplemental. civilian pay act supplemental. military pay ac supplemental. Provides funds for 303 flood control, navigation, and beach erosion studies, of which 34 will be started in 1969. A comprehensive river basin survey for the Great Basin region will be ·started. Funds in 1969 will provide for construction of 259 projects, of which 4 are special projects; 204 will continue; IO costing $121 million will be started; and 42 costing $463 million will be completed, including 1 project started in 1969. Preconstruction planning will continue on 75 projects and will be initiated on 18 projects. Workload in 1969 involves maintenance of 531 projects. Provides funds for emergency operations to combat flood disaster situations. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted 1968 1969 estimate estimate I ncreaae or I decrease ( -) I Explanation DEPARTMENT OF DEFENSE-CIVIL-Continued Federal Funds-Continued DEPARTMENT OF THE ARMY-Con. Corps of Engineers--Civil-Continued General and apecial funds-Continued General expenses ___________ _401 NOA 18,014 21,200 1,685 19,425 21,200 1.775 18,950 19 } DS46 E Exp. 17,922 Flood control, Mississippi River NOA and tributaries ___________ -401 Exp. 87,135 87,135 69,600 -17,535 87,534 84,200 75,000 -9,200 3,510 3,500 5,245 3,500 Permanent appropriations (indef- NOA inite, special funds) ________ 401 Exp. 3,857 Increase is for improved planning and technical review capability in complex water resource development field. Construction is continued on 9 major project features, and provi sion is made for project operation and essential maintenance 3,500 ------------ Fees paid by mine operators for depositing mine debris in re -1.745 straining works are used for their maintenance. Half of the receipts from Federal Power Commission licenses are used fo maintenance of navigation improvements. Three-fourths of re ceipts from lease .of Federal lands acquired for flood control navigation, and allied purposes are paid to States in which the projects are situated. . lntragovernmental funds: Advances and reimbursements, Corps of Engineers-CiviL401 Exp. -26,351 ------------- ------------- ------------ Revolving fund, Corps of Engi- Exp. neers-CiviL. ___________ _401 -1,838 ------------- ------------- ------------ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (The fund provides centralized services and facilities to agency programs.) Subtotal, Federal funds, Corps NOA of Engineer-Civil. Exp. I , 292 ,964 1,278,332 I , 306 ,428 1,315,000 I , 264 , 100 1,290,000 42 , 328 --25,000 Total Federal funds are distributed as follows: 1968 NOA 1969 Exp. NOA Exp. Enacted ____ 1,301,629 1,310,775 --------- --------Transmitted --------- --------- 1,264,100 1,289,426 ( C) _______ 2,400 2,000 --------400 (D) _______ 2,371 2,201 170 ( E) ------- 28 24 Trust Funds 25,870 22,979 20,778 26,000 18,522 23,000 -2,256 -3,000 Applicable receipts from the public NOA } -33,022 400 Exp. -27,572 -25,790 1,782 1,285,812 1,268,289 1,299,634 1,313,428 1,256,832 1,287,2IO -42,802 -26,218 Corps of Engineers-Civil trust NOA funds (permanent) __________ 401 Exp. ----------------- 4 Contributions and advances from local interests are used in construction and maintenance work. Unused balances are returned. Adjustments Total, Corps of Engineers- NOA Civil. Exp. Totals for the Corps of Engineers-Civil are distributed as follows: 1968 NOA Enacted ____ Transmitted ( C) _______ (D) _______ ( E) ________ C Proposed for 1eparate transmittal, wage-board supplemental. D Proposed for ■ eparate transmittal. civilian pay act supplemental. E Proposed for separate transmittal, military pay act aupplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1969 Exp. NOA 1,294,835 1,309,203 Exp. ----------------1,256,832 1.286,636 --------2,400 --------2,000 --------400 2,371 2,201 --------170 24 4 28 --------· Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I (- ) Idecrease Explanation DEPARTMENT OF DEFENSE-CIVIL-Continued Federal Funds Ryukyu Islands General and special funds: Administration ______________ 910 NOA 14,948 14,956 AS,500 C78 n53 EJ2 Exp. Construction of power systems_910 NL Pretreaty claims _____________ 910 NOA Exp. Total, Ryukyu Islands ______ 15,032 205 15,130 A5, 161 10,000 173 } 20,113 } A254 430 ------------- 21,040 ------------9,100 20,772 76 -430 ------------------------8,060 1,940 20,772 Includes $17.5 million for aid to the Ryukyuan economy. Re maining funds support administrative costs of the High Commissioner and the Advisory Committee announced by the President on Nov. 15, 1967. NOA Exp. NL 35,988 20,599 24,132 205 30,291 22,307 430 ------------- Canal Zone Government: Operating expenses ________ 910 NOA Exp. 34,746 36,000 37,869 1,869 32,839 35,926 37,669 1,743 (Construction of Kin powerplant has been completed.) (Provides payments to island inhabitants for pretreaty damage by U.S. Forces,) ... 173 <O -7,984 -430 O> <O THE PANAMA CANAL Capital outlay ____________ 910 NOA Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,000 4,500 1,061 -3,439 4,960 5,045 5,414 369 Increase provides for additional patient loads in hospitals and clinics and rising school enrollments. Estimate includes $451 thousand for routine recurring projects and $569 thousand for replacing and adding equipment. Public enterprise funds: -5,625 -2,095 (12,278) (13,000) (13,691) 36,746 40,500 38,930 -1,570 25,030 35,346 40,988 5,642 lnterfund and intragovernmental NOA transactions ____ ____________ 90() Exp. } -15,774 -16,2/5 -17,388 -I, /73 Applicable receipts from the public NOA 850 Exp. 900 NOA Exp. } -70 } -14,232 -5/ -51 -15,853 -16,96/ -1,/08 Total, The Panama CanaL _ NOA 6,670 8,381 4,530 -3,851 Exp. -5,046 3,227 6,588 3,361 Panama Canal Company fund_502 Exp. Limitation on general and administrative expenses. Subtotal, Federal funds, NOA The Panama Canal. Exp. -12,769 3,530 (Receipts from operations are expected to increase $2.5 million while gross expenditures increase $6 million.} (691) Increase provides for support of rising workload throughout Panama Canal Company and expanded training programs. Adjustments ------------ Federal Funds MISCELLANEOUS ACCOUNTS General and special fund■: Wildlife conservation, etc., mili- NOA tary reservations (permanent Exp. indefinite, special funds)-. -404 A C Z53 Z67 Z70 3 204 253 254 1 Proposed for separate transmittal under e:r.isting legislation, other than pay supplemental. Proposed for separate transmittal,wage .. board supplemental. D Proposed for separate transmittal, civilian pay act supplemental. E Proposed for separate transmittal, military pay act aupplementat https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Fishing and hunting license fees are used for wildlife conservation. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted 1968 1969 estimate estimate Increase or I (- ) Idecrease Explanation DEPARTMENT OF DEFENSE-CIVIL-Continued Adjustments Applicable receipts from the public NOA 400 Exp. Total, miscellaneous accounts NOA Exp. l -252 -267 1 ------------- -268 2 -I 2 ------------ -48 -14 -14 7,685 8,024 8,602 388 Trust Funds SOLDIERS' HOME Operation and maintenance _____ 80.5 NOA Exp. 7,489 8, 1.50 8,613 463 Receipts include fines, forfeitures, and pay stoppages of Arm y and Air Force enlisted personnel. Increase provides for a n estimated rise from 1,840 to 1,87.5 domiciliary members and from 425 to 43.5 hospital patients. Capital outlay ________________ 80.5 NOA 3,575 106 305 726 997 421 Increase reflects construction of a 5.5-bed hospital addition. 3,615 -2,618 1 1 1 1 nso } CJ40 Exp. Payment of claims (permanent, in- NOA definite ____________________ 80.5 Ex. p https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 ------------ Amounts are for refunds of charges erroneously deducted fro m 1 -----------the p ay of militarypersonnel. Trust revolving fund ___________ 805 ~ t 0 0 -3 ------------- ------------- ------------ (Fund finances certain supply inventories of the Horne.) Exp. ll,Z61 Subtotal, trust funds, Sol- NOA Exp. diers' Horne. 7,593 8,SZ0 11,766 9,3Z9 9,611 809 -2, 155 NOA f~ l'° Total trust funds are distributed as follows: 1968 Enacted _____ Transmitted_ ( C) ________ 8,330 --------140 50 (D) -------- Exp. 1969 NOA 11,587 --------9,329 --------132 --------47 --------- Exp. 9,600 Adjustments Applicable receipts from the public NOA 800 Exp. Total, Soldiers' Horne _______ NOA Exp. } -140 11, IZI 7,453 -140 8,380 11,626 -140 9,189 9,471 -----------809 -2,155 Totals for the Soldiers' Horne are distributed as follows: 1968 /969 NOA Exp. NOA 11,447 --------9,189 ----------------132 --------140 ( C) -------47 --------50 ( D) -------- Enacted _____ Transmitted_ C D Proposed for separate transmittal. wage-board aupplemental. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8,190 Exp. 9,460 8 3 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1 ncrease or I decrease ( - ) DEPARTMENT OF DEFENSE-CIVIL-Continued >-3 ~ M Summary Total, Federal funds ____ t:d q ------s::--- NOA E"i->• NL 1,383,099 1,388,994 1,339,724 -49,270 1,342,496 205 1,400,159 430 1,370,801 -29,358 -430 - - - - - - -- - - --- t:J 0 M >-3 Total Federal funds are distributed as follows: 1968 Enacted _______ (A) -- - - - -- - - ( C ) ___ ------ - (D) _________ ( E) __ - -- - - -- - NL NOA Exp. 1,378,552 5,500 2,478 2,424 40 1,390,643 5,161 2,070 2,249 36 430 ------------------------- /969 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37,131 29,298 27,851 -1,447 37,766 32,611 -5, 155 ..... [fJ. (") > t< NOA Exp. -<I 1,339,724 ( A) --- - - - - - -- ----------------- 1,369,960 254 408 175 4 > :;:I ( C) __________ 30,572 >zj Transmitted ___ (D) _________ ( E) __________ Total, trust funds _________________ NOA Exp. >zj 0 :;:I ----------------- M ..... "' "' 0, Total trust funds are distributed as follows: 1968 NOA Enacted _____ Transmitted_ ( C) ----- - -(D) __ ----- 1969 Exp. NOA 37,587 --------27,851 --------- --------140 132 --------50 47 --------- Exp. 29,108 32,600 8 3 Adjustments: lnterfund and intragovernmental NOA transaction _______________ 900 Exp. Applicable receipts from the pub- NOA lie _______________________ 400 Exp. 800 NOA Exp. 850 NOA Exp. 900 NOA Exp. Total. Department of De- NOA Exp. fense--Civil. NL } -15,774 -/6,215 -17,388 -l, /73 } -33,274 -27,839 -26,058 I, 781 -140 -140 -!40 ------------ } -93 } -14,232 -5/ -5/ ------------ 1 -15,853 -/6, 96/ 1,356, 717 1,358,194 1,306,977 I, 309,555 205 1.377. 827 1,342,814 430 ------------- -/, /08 -51, 217 -35,013 -430 Totals for the Department of Defense-Civil are distributed as follows: I 968 Enacted ______ A)---------C) ___ D) __________ E) ----- NOA E xp. I, 347,562 5,500 2,618 2,474 40 1.368, 132 5, 161 2,202 2,296 36 NOA E xp. 1,306,977 I, 34 1,962 254 416 178 4 I 969 Transmitted ___ A) __________ C) _______ -- DJ _____ E) ----A Proposed for separate transmittal under existing legislation, other than pay supplemental. C Proposed for separate transmittal. wage-board supplemental. D Proposed for separate transmittal, civilian pay act supplemental. E Proposed for separate transmittal, military pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ---------- - -- - - ----------------- NL 430 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 967 enacted I I 1968 1969 estimate estimate Explanation 1 ncrease or I (- ) 1 decrease DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE ---- ---··- -"-------- Federal Funds FOOD AND DRUG ADMINISTRATION General and special funds: Salaries and expenses ________ 651 Buildings and facilities. ______ 651 NOA Exp. 61,236 65,933 69,801 3,868 57,647 62,100 63,619 1,519 NOA Exp. 3,130 1, 150 100 -1, 050 631 3,301 5,081 I. 780 Revolving fund for certification Exp. and other services _________ 651 -69 -99 Provides for extending manufacturing practice standards, adding 140 plants to the industry self-certification program, and increasing drug reliability through the National Center for Drug Anal ysis. Decrease due to completion of funding for nonrecurring construction. Public enterprise funds: Total. Food and Drug Administration. NOA Exp. ------------- 99 64,366 67,083 69,901 2,818 58,209 65,302 68,700 3,398 1,342,372 1,676, 713 1,000 (Industry fe es finance certification of antibiotics, insulin, color additives, establishment of pesticides tolerances, and expenses of certain a dvisory committees.) i OFFICE OF EDUCATION General and special funds: Elementary and secondary educa- NOA tional activities _________ 70 I LA Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis --------- -- I. 265, 971 I -- --- I, 422,575 I 299 I --- I 703 -116, 010 Decreases in special grants for equipment and books are partly 1,000 -----------offset by new project grants to prevent school dropouts, for education of children whose native language is not English, and I. 408. 199 -14. 376 grants for evaluation and planning of Federal school aid pro931 632 grams. R 1,560, Repayment deposited in general LA fund. NL School assistance in federally af- NOA fected areas _______________ 701 Exp. Education professions ment activities ____ _ develop- -JOO 469,137 439,137 410,335 -28,802 447,074 371,941 415,507 43,566 NOA 913 215, 913 57,000 57,000 8 215, ____ 704 Exp. _701 -JOO NOA Exp. 11,324 13,500 31,235 17, 735 12,521 13,287 21. 698 8,411 Higher educational activities __ 702 NOA 950, 717 1, 156, 194 -427, 067 454,273 69, 105 912,000 32,000 Repayment deposited in general fund. LA Exp. NL LA NL 706,127 B23, 000 2,000 945,324 31. 900 -500 33,324 -100 -500 278,016 252,900 249,995 15,000 12,095 Teacher Corps __ . _ Expansion and improvement of vocational education_. __ 704 NOA B Exp. Libraries and community serv- NOA ices ______________________ 704 Exp. B 2,000 T 243,957 260,000 239,347 8 7,000 -13, 653 76,000 156,500 u 149,199 - 7,301 57,407 100,000 140,848 40,848 Proposed for separate transmittal under proposed legislation. R Includes $39,950 thousand to carry out authorizing legislation to be proposed. Includes $86,600 thousand to carry out authorizing legislation to be proposed. T Includes $543,000 thousand to carry out authorizing legislation to be proposed. U Includes $48,750 thousand to carry out authorizing legislation to be proposed. S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In 1969, payments will be made to 4,500 school districts in areas affected by Federal activities on behalf of 2,688,000 children. Despite 1969 decrease, program level will be higher than 1968 by applying funds not obligated in 1968. Increases are for new teacher training programs under Education Professions Development Act of 1967. Teacher institutes and fellowships previously in Higher educational and Elementary and secondary activities are now included in this account. In total, 39,000 teachers will participate and 20,000 college students will be preparing for school and college teaching. Increase permits recruitment of 1,500 new interns and experienced teachers each year; total Corps members in service will be 2,483. Decrease for construction of academic facilities 1s offset m part by increases for student aid programs. Appropriations for graduate fellowships now included in Education professions development activities, above. Legislation will be proposed for college services to disadvantaged students and for interinstitutional sharing of resources. Supports in-school vocational programs for 4,000,000 high school and post-high school students. Legislation is proposed for innovative occupational education programs, especially for disadvantaged youth. Increase for adult literacy offset by larger decrease in library construction. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 I 968 1969 enacted estimate estimate 1 ncrease or I (- ) Explanation 1 decrease DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued ..,, Federal Funds-·Continued p:1 M OFFICE OF EDUCATION-Continued td q General and special funds-Continued Educational improvement for the NOA handicapped ______________ 701 Exp. Research and training ________ 704 Foreign language training and area programs _________________ 702 NOA Exp. NOA Exp. Educational research and training NOA (special foreign currency pro- Exp. gram) ____________________ 704 Salaries and expenses____ ___ 704 Civil rights educational activities 701 Defense educational activities: (Assistance for elementary and secondary education) __ 70 I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35,075 53,400 85,225 31,825 25,175 39,700 64,000 24,300 ..,, M 70,000 90,967 142,300 51,333 64,980 95,000 30,020 Increases are for experimental prototypes including a model school in Washington, D.C .. and evaluations of current Federal education programs. ::i:l 3,000 15,700 w 19,250 3,550 Increase will support language and area centers at universities. ...."tj 2,276 4, l00 14,000 9,900 4,000 4,000 1,300 -25 1,000 ------------- I, 199 1,325 V 'zj 0 r:f). (".l > t< Increase in excess foreign currencies will support both education research and training of U.S. scholars overseas •• ~ M > ::i:l 35,499 37,520 46, 100 8,580 35,899 37, 848 45,000 7, 152 NOA Exp. 8,028 10,000 14,976 4,976 8,798 9,700 13,300 3,600 NOA 113,450 1,500 Exp. 98,444 559 NL I:, c:i 50,541 NOA Exp. LA Provides for expansion of school and preschool classes for 53,300 students, and for teacher training. Increase provides staff for programs authorized by 1967 legislation and expansion of educational data systems. Provides additional assistance to States and school boards in alleviating desegregation problems. (Appropriations now included in Elementary and secondary activities.) 71,300 8,000 300 ------------- -63,300 -300 ..... '° '° O'l Repayments deposited in gen• LA eral fund. NL ( Assistance to higher educa- NOA tion) _________________ 702 LA Exp. NL Repayments deposited in gen• LA NL eral fund. (Other aid to education) __ 704 NOA Exp. Total, defense educational ac- NOA tivities. LA Exp. NL } -2,433 -200 -200 ------------ 284,957 ------------- ------------- ------------ (Appropriations now included in Higher education activities.) 2,000 ------------- ------------- ------------ } 241, 124 1,684 -509 98,891 ------------9 -------------500 -1,000 -98,891 -9 -500 44,450 ------------- - - ---------- ------------ 46,356 23,500 442,857 - ----------- -700 558 385,924 -699 193,691 -391 ----------- 1,000 Colleges for agriculture and the NOA mechanic arts (permanent)_ 702 Exp. 2,550 2,550 2,550 2,550 Promotion of vocational educa- NOA tion, act of Feb. 23, 1917 (per- Exp. manent) _________________ 704 7,161 7,161 6,300 10,952 -20,500 -1,200 ------------500 11,000 -1,200 -182,691 -809 1,000 ------------- Arts and humanities educational NOA activities _________________ 701 Exp. 730 3,000 520 965 -1,000 -445 V W NOA Exp. 3,200 ----- - -- - - - 104 2,550 ------------ Annual grants of $50 thousand are made to each State and Puerto Rico. 7,161 ------------ Matching grants are made to States for training in vocational -3,791 subjects. 7,161 --- ----- --- - ----- -- I, 948 Includes $3,550 thousand to carry out authorizing legislation to be proposed. Includes $16,050 thousand to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Appropriations now included under Elementary and secondary and Education professions development activities. 2,550 ------------ Public enterpriae funds: Student loan insurance fund __ 702 (Appropriation now included in Reseach and training.) I, 844 ( Insures loans to college and vocational students made by banks and other credit institutions.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I I 1967 enacted 1968 estimate 1969 estimate Increase or (- ) I decrease I Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued ------ Federal Funds-Continued OFFICE OF EDUCATION-Continued funds-Continued Higher education facilities loan fund: 702 Appropriation______ _ NOA Current, indefinite__ _ NOA Permanent, indefinite_ NOA Public enterprise Appropriation_ LA Authorization to spend debt LA Exp. receipts. NL --- ---- 925 485 ----- - - 200,000 100,000 -915 12,852 l, 700 -- - --- -T~!r} 100,000 100,000 77 35,951 2,350 961 48,642 }--- - - Increase is for interest insufficiencies on participation certificates. Funds will make available $l00 million in loans in 1969 for construction of classrooms, libraries, and laboratories. 884 12,691 lntragovernmental funds: Advances and reimbursements-704 Exp. Total, Office of Education___ -8,699 713 - - - - - - --- - - - - -713 NOA LA Exp. NL 3,737,421 300,558 2,990,981 81,258 3,915,867 102,300 3,446,508 67,859 3,688,044 101, zoo 3,491,663 79,673 -227,823 -1, 100 45, 155 11. 814 NOA 7,798 8,416 8,582 7,882 9,073 9,014 491 1,132 .... co co 0, PUBLIC HEALTH SERVICE Office of the Surgeon General General and apecial funda: Salaries and expenses ________ 651 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. Increase provi des strengthened central management. Comprehensive health planning NOA and services ______________ 651 Exp. 4,ZSO 37 140,585 AZ0,000 67,000 A5,000 Total, Office of the Surgeon NOA General. Exp. lZ,048 8,453 169,167 79,882 204,456 119,014 35,289 39,132 Health manpower education and NOA utilization ________________ 651 Exp. 500 508 158,063 75,258 197,400 121,080 39,337 45,822 Increase is for aid to students and colleges providing training in allied health professions, and to medical and dental schools in greatest need of financial support. Construction of health educational NOA facilities __________________ 651 Exp. 160, 7Z7 29,165 203,000 88,000 84,800 90,000 -118,ZOO 2,000 $67.6 million of the 1968 appropriation has been deferred for use in 1969. Revised 1968 and 1969 programs continue construc- 1 195,383 34,798 95,000 A)5,000 38,000 1 1968 supplemental will expand rat control programs. 1969 increase covers expanded grants for comprehensive statewide and area health planning, support of broadened State and local health service programs, and project grants to combat local, regional, or national health problems. Health Manpower tion of facilities for health manpower education. Dental services and resources __ 651 NOA Exp. Nursing services and resources NOA 651 Exp. Total, health manpower_____ NOA Exp. 9,693 ------------- ------------- ------------ (This activity transferred to Health manpower education and 9,210 4,956 -------------4,956 utilization.) ZS,518 ------------- ------------22,626 II, 199 ------------- ------------11,199 196,438 61,509 361,063 179,413 ZBZ,ZOO 211,080 -78,863 31,667 91,591 70,705 Z7,94Z 69,000 29,779 30,000 1,837 -39,000 (This activity transferred to Health manpower education and utilization.) Disease Prevention and Environmental Control Chronic diseases _____________ 651 A NOA Exp. Proposed for separate transmittal under exirting legislation, other than pay supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Provides additional support for chronic respiratory and arthritic diseases, smoking and health, and domestic nutrition studies. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued 1967 enacted Account and functional code 1968 estimate 1969 estimate 1 1ncrease or I decrease ( -) Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued -----~-----~----~----------- Federal Funds-Continued PUBLIC HEALTH SERVICE-Continued Disease Prevention and Environmental Control-Continued General and special funds-Continued Communicable diseases _______ 651 NOA Exp. 44,220 45,102 70,347 64,000 63,407 60,000 -6,940 -4,000 Provides for new clinical laboratory improvement program, and increases for epidemiology and venereal disease control. These increases are more than offset by the discontinuance of special assistance to States for the vaccination of children against selected diseases. This program has been included under the Partnership-for-Health program. Air pollution ________________ 651 NOA 40,061 106,733 26,548 Exp. 30,664 64,185 A16,000 50,000 A3,00Q 74,000 A6,0QQ 27,000 Supplemental in 1968 is primarily for fuel combustion research. 1969 increase will provide for continued implementation of the Air Quality Act of 1967. Urban and industrial health __ 651 NOA Exp. 21,962 17,164 41,750 30,102 45,611 33,000 3,861 2,898 Increase is for solid waste research and demonstrations, and for research into the health effects of contaminants in drinking water. Radiological health __________ 651 NOA Exp. 20,895 20,990 15,687 17,235 18,077 17,000 2,390 -235 Increase represents transfer of funds to this account for management activities. Additional research on health effects of radiation will be supported. Injury control__ _____________ 651 NOA Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5,668 ------------- ------------- ------------ (This program was transferred to Urban. and industrial health and Patient care and special health services.) 4,662 2,532 -------------2,532 Control of tuberculosis _______ 651 NOA Exp. 21,597 Control of venereal diseases __ 651 NOA Exp. 10,593 ------------- ------------- ------------ (This program was transferred to Communicable diseases and 9,558 1,990 ------------Comprehensive health planning and services.) -1. 990 Occupational health _________ 651 NOA Exp. 5,787 NOA Exp. 8,150 NOA Exp. 271,381 235,911 263,607 27,696 229,836 247,810 221. 224 -26, 586 NOA 128,114 X59,500 -7,167 Foreign quarantine activities __ 651 Total, disease prevention and environmental control. 17,054 6,592 ------------------------- -----------6, 144 -4. 920 1. 224 ------------3, 142 ------------- ------------- 8,202 ------------- ------------- 665 ------------- (This program was transferred to Communicable diseases and Comprehensive health planning and services.) ------------3, 142 (This program was transferred to Urban and industrial health.) ------------665 (This program was transferred to Communicable diseases.) Health Services Community health services ___ 651 Exp. Limitation payable from trust funds. 103,767 ----------- 54,240 A12,427 70,410 A8,000 (4,075) } 60,549 A1,451 (4,320) } -16,410 (245) 1968 supplemental provides additional funds for a National Center for Health Services Research and Development and for mental retardation construction grants. Decrease in 1969 due to transfer of mental retardation research and construction grants to Social and Rehabilitation Services. Patient care and special health services __________________ 651 NOA Exp. 64,181 65,113 71,193 6,080 1969 estimate provides for improved staffing and services in Pub- 63,938 64,971 70,000 5,029 lic Health Service hospitals and clinics for 1.7 million outpatient visits and care for an average of 2,465 patients per day. Hospital construction activities NOA Exp. 313,525 293,487 258,368 -35, 119 651 208, 135 222,000 215,000 -7,000 A portion of the 1968 NOA has been deferred for use in 1969. Revised programs for 1968 and proposed for 1969 will provide $262.8 and $290.8 million, respectively, for construction of health facilities. Indian health activities _______ 651 NOA 76,324 83,879 95,907 11,028 1968 supplemental will finance higher-than-anticipated costs of contract medical care. The 1969 increase provides for ex- 72,963 A1,000 78,706 A]00 10,594 pansion of preventive care programs, family planning activities, and increased training of nonprofessional health personnel. Exp. A X l 89,700 A300 } Proposed for separate transmittal under existing legislation, other than pay supplemental. Includes $8,100 thousand to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~ Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted estimate estimate 1 1 ncrease or I decrease ( - ) Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued ------·----- ------------~--- Federal Funds-Continued PUBLIC HEALTH SERVICE-Continued Health Services-Continued General and special funds-Continued Construction of Indian health NOA facilities __________________ 651 Exp. 14,489 10,300 16,848 19,297 16,100 19,584 -748 287 The estimate includes construction of 6 field health facilities, alterations at 14 hospitals, and 89 sanitation projects serving 6,500 fa milies. Emergency health activities ___ 059 NOA Exp. 10,000 6,416 8,947 8,000 2,400 -6,547 -3,000 1968 program level will be maintained from available prior year funds. Medical care services ________ 651 10,359 ------------- ------------- ------------ (This acti vity was transferred to Community health services.) 4,074 6, 134 -------------6, 134 (3,512) ------------- ------------- ------------ NOA Exp. Limitations payable from trust funds. Total, health services _____ 5,000 NOA Exp. 616,992 469,593 535,941 478,218 503,468 461,584 -32,473 -16, 634 Biologics standards __________ 651 NOA Exp. 7,904 5,397 8,649 8,012 8,499 8,009 -150 -3 Estimate is for continuation of studies on tumor-producing factors in vaccines, for research on existing and prospective vaccmes , such as rubella, and for regulatory activities. National Cancer lnstitute ____ 651 NOA Exp. 175,644 154,604 183,356 164,974 187,707 165,000 4,351 26 Increase is for additional research grants for cancer centers and for task forces, notably the lung cancer task force. National Institutes of Health https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 0 National Heart Institute _____ 651 NOA Exp. 1§4,758 139,841 165,898 150,465 169,735 152,000 3,837 1,535 Increase is for the artificial heart/ myocardial infarction program, studies of the biochemical aspects of disease, and cardiovascular research and training centers. National Institute of Dental Re- NOA search ___________________ 651 Exp. 28,296 24,315 30,288 25,099 30,414 25,100 126 Estimate is for continued development of university-based dental research institutes, and clinical trials of new caries preventive agents and methods. I National Institute of Arthritis and Metabolic Diseases __ _ -- 651 NOA Exp. 135,675 128,918 143,954 131,500 146,489 131. 500 2,535 Increase is for artificial kidney-chronic uremia program, and for research in diabetes, gastroenterology, and arthritis. ..,, National Institute of Neurological Diseases and Blindness 651 NOA Exp. 116,284 102. 947 126,956 107,329 131, 195 110,700 4,239 3,371 Increase is for emphasis on research in degenerative disorders, including Parkinsonism, head injury, stroke, and disorders of vision, speech, and hearing. M ~ >zj M I;;) M National Institute of Allergy and Infectious Diseases 651 NOA Exp. 90,658 82. 266 94,422 77, 179 98,562 80,000 4,140 2. 821 Increase covers research in immunology, viral diseases, chronic and degenerative diseases, and transplantation, immunology, and vaccine development. ::0 National Institute Medical Services General .651 NOA Exp. 145,088 127. 134 160,250 128, 113 165, 777 130,000 5,527 I. 887 Increase covers continuation of research in anesthesiology and diagnostic radiology. strengthening of research in pharmacology and toxicology, and in clinical research training. 0 National Institute of Child Health and Human Development 651 NOA Exp. 64,922 58,260 68,621 61. 000 75,394 63,000 6, 773 2,000 Increase is for research and research training programs in reproduction, population research, fertility control, and a new program for mental retardation research centers. Regional medical programs 651 NOA Exp. 45,004 4,468 58,814 18. 131 68,922 40,000 10, 108 21. 869 Increase permits expansion of operational grant programs in 54 regions to increase the availability and utilization of advanced diagnosis in heart. cancer, stroke, and related diseases. Environmental health sciences_65 I NOA 24,298 16,958 17,289 17. 023 18,099 17. 000 810 -23 Estimate includes research training programs in the environmental health sciences and staffing of the National Environmental Health Sciences Center in North Carolina. of Exp. Y Y > t< "d ::0 C') ::0 > ~ 1:,:/ ~ >C') M z0 ~ Includes $62,900 thousand to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~ 0 J-' Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued 1967 enacted Account and functional code 1968 estimate 1969 estimate 1 1 ncrease or I decrease ( - ) Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued ------------------- Federal Funds-Continued PUBLIC HEALTH SERVICE-Continued National Institutes of Health-Continued General and special funds-Continued General research and services. National Institutes of Health NOA Exp. 68,522 81, 141 87,500 6,359 53,920 70,360 71,400 I, 040 -26, 600 651 Increase includes funds for the initial operational costs of the new International Center. Estimate reflects continuation of programs to upgrade laboratory animal resources, engineering development, international research, and computer research and technology. I Grants for construction of health research facilities _651 NOA Exp. John E. Fogarty International Center for Advanced Study in _651 the Health Sciences__ NOA Exp. Construction of mental healthneurology research facility __ 651 Exp. Total, National Institutes of Health. NOA Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 56,000 ' 35,000 8,400 38,773 39,000 39,000 --- -500 500 64 414 350 4,261 4,000 1. 400 -2, 600 1,123,053 1,175,138 1,196,693 21,555 942,062 1,002,249 1,034,523 32,274 Estimate provides grant funds for construction of non-Federal research facilities. A $20 million program level will be achieved in I 969 through the use of funds brought forward from 1968. Construction planning will be initiated in 1968 for a new facility at the NIH campus, at Bethesda, Md. (Expenditures are payments of prior obligations. Completion is scheduled for January 1968.) National Institute of Mental Health Mental health research and serv- NOA I ices_ _651 Exp. II 245, 703 217,700 225,000 50,000 4,305 100, 168 z 87,300 40,000 50,000 10, 171 9 464 10, 731 9,900 11,077 10,500 2,298 941 1,237 1,302 65 3,054 3,735 681 265, 104 203 789 277,639 31,936 7,300 Increase is for research, training, and narcotic addict rehabilitation. Includes $15 million in demonstration grants for experiments in early childhood development. -12, 868 10,000 Decrease reflects deferral to 1969 of 1968 funds for construction of community mental health centers. 346 Provides for staffing increases and other improvements, partially funded by anticipated increase in reimbursements of $1 .4 million for care of District of Columbia and other Federal patients. I Community mental source support_ health re_651 NOA Exp. Saint Elizabeths Hospital: Salaries and expenses (indefi- NOA nite) _651 Exp. Buildings and facilities _____ 651 I I NOA Exp. Total, National Institute of NOA Mental Health. Exp. 327,573 I 218,499 I 600 The 1969 estimate provides for 7 miscellaneous repair and improvement projects. 357,839 377,318 19,479 270,654 289,235 18,581 1, 184 990 Increase covers new program assistance to State vital statistics agencies and for collection of family planning statistics. Decrease due to reduction in medical library construction grants partially offset by increases in the Toxicology Information Exchange and automated library and retrieval system. Other National health statistics_ 651 NOA Exp. National Library of Medicine_65 I NOA Exp. Buildings and facilities _______ 651 NOA Exp. Scientific activities overseas (spe- NOA cial foreign currency program) Exp. 651 Z I 9,312 8,317 9,501 7,492 8,220 9,210 20, 192 21,674 12. 498 19, 172 15,000 -2, 502 7,682 18,279 10, 715 12,495 20,247 20,633 22,417 1, 780 1,784 Increases mainly for repairs and improvements, an environmental health facility in Morgantown, W. Va., and completion of a multilevel parking facility. 10,000 6,833 15,000 ID, 000 30,000 17,000 15,000 7,000 Supports overseas scientific research through the use of excess foreign currencies. Includes $8,000 thousand to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,502 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted estimate estimate Increase or I decrease ( -) I Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued Federal Funds-Continued PUBLIC HEALTH SERVICE-Continued Other-Continued General and apecial funda-Continued Retired pay of commissioned offi- NOA cers (indefinite) ___________ 651 Exp. 10,838 13,800 15,090 1,290 8,416 13,000 15,000 2,000 Expired accounts, Public Health Exp. Service ___________________ 651 4,974 1,292 Retired officers will increase from 785 to 873. Increase also provides for expanded dependents' medical care benefits. -1,292 Public enterprise funds: Health education loans: Health professions education fund: 651 Appropriation (payment of sales insufficiencies) . Indefinite________________ Appropriation______________ Authorization to spend debt receipts. Nurse training fund: 651 Appropriation (payment of sales insufficiencies) . Indefinite _______________ _ Appropriation _____________ _ Authorization to spend debt receipts. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA NOA NOA NOA Exp. NOA NOA NOA NOA Exp. ::::::::::: __________ :~- }--------------------;~-} 10,000 2,000 -2,380 11,500 11,459 ::::::::::: 2,000 -6,347 -----------~- 11,302 ----------~;-} t: }-----------6,494 6,902 139 Funds available from participation sales in 1968 will finance loans to approximately 11,800 health profession students in 1969. Increase in interest insufficiencies due to higher sales. -13,500 -157 41 -7,890 408 Funds available from participation sales in 1968 will finance loans to approximately 11,500 nursing students in 1969. Increase in interest insufficiencies due to higher sales. Payment of sales insuflicien- NOA cies ___________________ 651 ! g Operation of commissaries, nar- Exp. cotic hospitals _____________ 651 ----------- -2 230 ------------- -230 -3 ------------- 3 An indefinite appropriation directly to the funds concerned 1s proposed for 1969. (Provides canteen services at 2 narcotics hospitals.) lntragovernmental funds: f 0 Public Health Service manage- Exp. ment fund ________________ 651 -220 ------------- ------------- ------------ (Finances management services of the Bureaus of Health Services National Institutes of Health Exp. management fund _________ 651 -825 - - - ------------- Service and supply fund ______ 651 Exp. -610 Working capital fund, narcotic Exp. hospitals _________________ 651 2 ---------78 -56 and Disease Prevention and Environmental Control.) 45 (Finances procurement services for the Public Health Service.) -7 49 (Finances occupational therapy industries for narcotics patients.) Exp. -9,205 ------------- ------------- Advances and reimbursements_651 Exp. -3,453 Total, other Public Health Service. NOA Exp. 80,621 32,604 Total, Public Health Service_ NOA Exp. z, 628,106 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1. 962,556 I (Finances management services of the National Institutes of Health.) -33 General research support grants 651 I ------------ ------------ 54 3 -51 91,146 83,513 86,458 96,794 -4,688 13,281 2,926,205 2,341.739 z, 914, zoo -12,005 91,715 2,433,454 (Grants from funds available to National Institutes of Health and National Institute of Mental Health are made to the health profession's schools and some graduate schools for institutional research purposes. A special advancement award program seeks to strengthen the research capabilities of selected schools.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued ---~" Account and functional code ------- ----~--------------------~ 1967 1968 1969 enacted estimate estimate I }.:~::::· (o_i: )I Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued Federal Funds-Continued SOCIAL AND REHABILITATION SERVICE General and special funds: Grants to States for maintenance NOA payments _______________ 653 NOA comparable to 1969 request (2,607,202) Work incentive activities ___ 652 Grants to States for medical assistance ________________ 651 3,051,900 46,000 2,945,600 2,899,600 40,000 15,000 135,000 94,000 A 25,000 95,000 104,000 A 1968 supplemental is required to implement the new grant program of work incentives. Increased 1969 requirements will provide training for 82,000 welfare clients, employment in work projects for 20,000, and care for about 35,000 children. Formerly an activity of Grants to States for public assistance. Increase covers higher medical prices, greater utilization of services, larger numbers of persons receiving services, and an increase from 43 States in 1968 to 48 States in 1969 participating in the Medicaid program. The I 969 1evel reflects initial reduction in the scope of Medicaid as a result of the I 967 social security amendments. (2,984,758) Exp. NOA Exp. ----------- NOA ----------- ------------- 2,118,300 2,118,300 Exp. (I, 171, 568) (I, 807, 642) ----------- -------- 2,093,300 2,093,300 594,800 S94, 800 587,856 587,856 NOA comparable to /969 request A A Social services, administration, NOA training, and demonstration projects ________________ 653 NOA comparable to /969 request https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (39/, 230) Exp. Formerly an activity of Grants to States for public assistance. Estimate reflects reduced costs for old-age assistance due to benefit increases under Social Security offset by increases for aid to families with dependent children. A monthly average of 8.8 million people, including 4.6 million children will receive federally aided maintenance payments in 1969. 3,051,900 (466,900) Formerly a subactivity of Grants to States for public assistance. 1969 increase is primarily due to recently enacted requirement for intensified social services under aid to families with dependent children. Grants to States for public assistance: (Income maintenance paymentsL _ ___ .653 (Medical assistance)__ _.. 651 1,221,000 A 540,015 } 2,607,202 2,529,500 A455, 258 Exp. 2,610,059 2,490,000 A 440,000 NOA I, 171, Exp. 1, 173,000 NOA 391,230 5681 ! (Social services, administration, training, and demonstration projects) _______________ 653 A568, 342 }-} }-- NOA I, 239,300 A Exp. 392,000 _ -2, 984, 758 1968 supplemental covers costs of unanticipated caseload increase under aid to families with dependent children. In 1969, this A 15,258 -2, 914,742 activity will be funded under Grants to States for maintenance payments. -1,807,642 A 28,327 -1, 732. 688 Medicaid supplemental required to meet Federal share of unforeseen program cost in 1968 due to higher-than-anticipated medical prices and increased utilization of services. 1969 activity will be funded as indicated above. --- ---- 355,500 ll},400 }------------ 350,233 )0,000 } A) A) -466,900 ,400 -458,833 NOA Exp. 4,170,000 Assistance for repatriated U.S. nationals _________________ 653 NOA Exp. 460 525 545 20 400 507 535 28 Grants for rehabilitation services and facilities. _____________ 659 NOA 258,560 311,550 A 1,900 A375,490 62,040 Exp. Mental retardation 659 NOA Exp. 208,277 5,259,300 I 5,151,248 299,882 A 627 -- ---- - - - --- ----- - - - - - ----- ------ above. ----A-44:9ss-l=tt~tm Total. grants to States for public assistance. 4,175,059 1968 supplemental is required to cover the Federal share of caseload-related costs. 1969 activity will be funded as indicated l I A 365,338 A I ,273 } 66,102 30,056 30,056 10,800 10,800 Provides income maintenance, social services, and medical care for mentally ill and other indigent repatriates. 1968 supplemental required for States to complete comprehensive planning. 1969 increases will assist States to rehabilitate about 230,000 disabled individuals, 15% more than in 1968. Previously funded under Community health and Hospital construction activities. Will provide improvement grants to 110 State residential institutions, serving 40,000 retardates; construction and initial staffing grants for community facilities; and construction grants for university-affiliated facilities . .-\ Proposed for separate transmittal under existing legislation, other than pay supplemental. Includes $26,090 to carry out authorizing legislation to be proposed. A A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~ 0 -1 ~ 0 00 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)----Continued Account and functional code 1967 I 968 1969 enacted estimate estimate 1 1 ncrease or I decrease ( - ) Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued --------------- Federal Funds-Continued SOCIAL AND REHABILITATION SERVICE-Continued General and special funds-Continued Maternal and child health and NOA welfare____ ______ 6S I Exp. 228,900 183,741 235,600 223,000 297,500 269,000 61,900 46,000 Increase reflects higher medical prices, expansion of family planning services, stepped-up early detection and treatment of handicapping illnesses of children, pilot projects for delivering comprehensive health services to mothers and children, special dental projects, and services for teenage unmarried mothers. Development of programs for the NOA aging ____________________ 6S9 Exp. 10,275 6,817 18,450 13,029 26,000 26,202 7,550 13,173 Increases will support additional project grants for services for the elderly. Rehabilitation research and train- NOA ing ______________________ 6S9 Exp. 60,325 SI ,881 63,937 61,766 BB67,925 66,34S 3,988 4,S79 Supports 414 research and demonstration projects, 14,13S traineeships, 6S8 teaching grants, and I 9 research and training centers. NOA 3,150 1,389 3,150 3,300 5,000 4,000 1,850 700 Increased support for innovative demonstrations related to changes in delivery systems to promote self-support and directed research for development of information essential to evaluation and program planning. 4,500 3,4SI 5,000 4,820 7,500 6,824 2,500 2,004 Excess foreign currencies in 8 countries support the exchange of rehabilitation experts and the use of overseas facilities for rehabilitation, social welfare, and maternal and child health research. Cooperative research or demonstration projects ___________ 6S9 Research and trammg (special foreign currency program) __ 6S9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. NOA Exp. 19, 612 21,380 (23,367) 17,747 (299) (24,738) Exp. NOA NOA LA Exp. NL Salaries and expenses, Social and NOA Rehabilitation Service ____ 659 NOA comparable to 1969 request Limitation payable from social security trust funds. Assistance to refugees United States __ Reappropriation_ __ _ in the _653 Repayments deposited in genera! fund. LA NL Grants for correctional rehabilitation study ________________ 659 NOA Exp. Juvenile delinquency and youth offenses __________________ 659 NOA Exp. Juvenile delinquency prevention NOA and controL. ______________ 659 Exp. 27,800 6,420 20. 943 (336) 27. 382 (348) 6,439 ( 12) 47, 721 45,220 56, 134 6,414 I, 033 3,279 38,391 3,050 4,500 3,780 47,920 4,030 4,140 54,660 4,440 360 6,740 410 -300 -50 -250 } 800 800 ------------- 452 8,207 7,028 800 600 -800 ------- -- - - - B2S,OOO 25,000 BZ0,000 20,000 lntragovernmental funds: Advances and reimbursements.659 Exp. Total, Social and Rehabilitation Service. NOA LA Exp. NL 8 HB I ------------- ------------- -----------4,813,543 3,279 6,011,312 3,530 6,818,950 3,840 807,638 310 4,694,634 3,050 5,895,180 3,780 6,643,700 4,140 748,520 360 Proposed for separate transmittal under proposed leg is lat ion. Includes $64,306 to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase due primarily to maintenance payments and health services required by elderly Cuban refugees. Study will be completed in 1968. -200 ------------- -----------------------6,338 -------------6,338 ----------- ----------------------- } Consolidates Federal administrative costs heretofore provided under 6 appropriations of the Welfare, Vocational Rehabilitation, and Aging Administrations and mental retardation activity from the Public Health Service. (Authorization for this program expired in 1967; new program under pending legislation to be implemented in 1969,) Will support programs for the prevention, treatment, and control of juvenile delinquency. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued 1967 enacted Account and functional code 1968 estimate 1969 estimate Increase or (- ) I decrease I Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued --------------~ Federal Funds-Continued SOCIAL SECURITY ADMINISTRATION General and special funds: Payment to trust funds for health insurance for the aged ______ 651 NOA 924,050 906,631 1,360,227 80,568 906,631 373,028 I, 360,227 80, 568 Exp. 105,000 105,000 105,000 105,000 105,000 105,000 949,850 A Payment credits for military 1968 supplemental will (I) reimburse the trust fund for higherthan-previously-estimated benefit payments and administrative costs for the uninsured, and (2) increase the matching contribution for supplementary medical insurance because of larger-than-budgeted numbers of enrollees and the hi'lher monthly premium effective Apr. I, 1968. 1969 increase reflects the lull-year effect of the premium increase and larger number of enrollees in the SMI program, partially offset by lower costs resulting from a reduced number of uninsured. A 373,028 service NOA __ 659 Exp. 225,545 225,545 Payment for special benefits for NOA the aged __________________ 654 Exp. Provides for 4th of 50 installments to pay the Government's obligation to the Social Security trust funds for costs resulting from military service. 225,545 Reimburses the old-age and survivors insurance trust fund for payments to certain noninsured individuals aged 72 and over. 225,545 Public enterprise funds: Operating funds, Bureau of Fed- Exp. era! Credit Unions _________ 659 -8 385 -3 7 lntragovernmental funds: Advances and reimbursements_659 Exp. Total, Social Security Admin- NOA istration. Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis l-1-,-02-9,-0-50-:1~~6591 I, 054, 839 I. 385,051 415 -------------! 1,690, 30 -7 772 i--30_6_,1-13- I. 691, 187 (The chartering, supervision, and examination of Federal credit unions are financed by fees for services performed.) 306, 136 1 SPECIAL INSTITUTIONS I American Printing House for the Blind General and special funds: Education of the blind ______ 704 NOA Exp. 1,028 l,ZZ5 1,340 115 1,026 1,225 1,340 115 . 491 2,615 800 -1,815 231 1,000 I, 100 100 Decrease due to nonrecurring appropriation for site acquisition and architectural engineering in 1968. Covers pilot operation of exemplary secondary school for the deaf. Increase reflects larger school enrollment of blind children and increases in per capita costs. National Technical Institute for the Deaf National Technical Institute for NOA the Deaf_ ________________ 704 Exp. Model Secondary School for the Deaf Salaries and expenses ___ _ Construction _______ _ _701 _701 425 400 -ZS 335 310 -25 445 170 100 100 700 845 145 335 410 75 3,785 866 3,625 768 NOA Exp. ----------- NOA Exp. Z75 --------------------- ------------- Total, Model Secondary NOA Exp. School for the Deaf. ----------- ----------- ----------- Increase provides for construction planning and site preparation. Gallaudet College Salaries and expenses ________ 702 NOA 2,542 2,878 } Exp. 2,431 D4l 2,857 Construction _______________ 702 NOA Exp. 70 2,196 675 -1,521 287 1,473 594 -879 2,612 5,115 4,460 -655 2,718 4,330 4,219 -Ill Total, Gallaudet College ___ NOA Exp. Provides for 7% rise in enrollment, increase in faculty salaries, and improvements in instructional program. Decrease due to completion of funding for dormitory construction. ' A D Proposed for separate transmittal under existing legislation, other than pay supplemental. Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted csti mate estimate Increase or (- ) I decrease I Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued - Feder al Funds-Continued SPEC IAL INSTITUTIONS-Continued Howard University Genera I and special funds-Continued Salari es and expenses ________ 702 NOA 13,534 15,300 n234 Exp. 12,827 14,800 NOA Exp. 3,342 954 NOA 6,639 6,700 n237 Exp. 5,454 6,861 NOA Exp. 23,515 26,397 29,278 2,881 19,235 24,761 28,631 3,870 27, 6461 23,210 36,052 36, 723 671 31. 651 35,700 4,049 7,574 7,139 10,705 3,526 9,850 2,400 Cons truct ion _____ _______ -- _702 Freed men's Hospital__ _______ 651 Total, Howard University ___ Total, special institutions ____ NOA Exp. 18,330 2, 796 17,682 2,882 3,926 Z,209 -1, 717 3, 100 3,224 124 8,739 1,802 7,725 864 } } Provides for 4% enrollment growth, increase in faculty salaries, and improvement of graduate schools of medicine, dentistry, engineering, and architecture. Estimate is primarily for construction of a dormitory and powerplant facilities. Decrease reflects completion of prior projects. Increase provides additional stalling, equipment, and supplies to improve patient care. 0 FFICE OF THE SECRETARY Salari es and expenses, Office of NOA t he Secretary ___________ 659 Rea ppropriation ______________ NOA Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ----------5,935 40 7,450 } Increase provides additional staff for executive direction, program coordination, and civil rights compliance. (1,272): (1,211) (1,459) (248) Salaries and expenses, Office of NOA Field Coordination ______ 659 Exp. Limitation payable from social security trust funds and Bureau of Federal Credit Unions operating fund. 1,959 1,931 ( 1, 805) 2,161 2,080 (1,815) 2,908 2,780 (2,379) (564) Salaries and expenses, Office of the NOA Comptroller ____________ 659 Exp. Limitation payable from social security trust funds. 4,486 4,652 (688) 6,748 6,445 (991) 9,144 8,470 (1,335) 2,396 Increasing number and complexity of agency programs require 2,025 additional audit staff. (344) 2,427 3,312 3,007 (352) 885 Increase is for staff support for administrative management activities. 750 (81) Limitation payable from social security trust funds. Salaries and expenses, Office of NOA Administration __________ 659 Exp. Limitation payable from social security trust funds and Bureau of Federal Credit Unions operating fund. Surplus property utilization ___ 659 NOA Exp. Salaries and expenses, Office of NOA General CounseL _______ 659 Exp. Limitation payable from social security trust funds and Bureau of Federal Credit Unions operating fund. Educational broadcasting facilities NOA 704 Exp. A 2,257 (271) 747 700 1,123 1,092 1,158 1,186 1. 185 28 38 Provides for distribution of surplus real and personal property to State agencies for education, public health, and civil defense purposes. 1,737 1.528 (1,330) 1,935 (1,373) 2,125 2,040 (1,375) 190 185 Small increase to meet new program responsibilities of Secretary, operating agencies, and regional offices. A435 6,700 A396 13,087 8,775 A39 3,304 8,222 1. 147 1. 855 (2) 12,652 1. 718 Proposed for separate transmittal under existing legislation, other than pay settlement. n Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase is for better coordination of programs in the field and regional office management services to meet increased workloads. Provides matching grants for educational television and radio facilities under new authorizations enacted in 1967. The supplemental will cover 1968 administrative costs. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued I Account and functional code .~:c\~d I es!i9;~te ca!?;:te I}.:~:::~• (~)I Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued Federal Funds- Continued OFFICE OF THE SECRET ARY-Con. General and special f unda-Continued Public broadcasting program __ 704 NOA Exp. -- --- - - - ----- ------ Higher education for international NOA understanding ____ _________702 Exp. ----------- ----------------------- - - - - - - - - - - - A 4,000 8 20,000 16,000 A 4,000 8 20,000 16,000 10,820 10,820 7,800 7,800 -238 -994 1968 supplemental will provide grants under existing legislation Legislation will be proposed in 1969 to authorize Federal grants to the recently established Corporation for Public Broadcasting and for advance funding. Grants for programs at colleges and universities to increas knowledge of foreign countries and cultures. lntragovernmental fu nds: Working capital fund ________ 659 Exp. -1,053 756 Advances and reimbu rsements_659 Exp. -338 -25 Total, Office of the Secre- NOA tary. Exp. 20,183 26,043 73,287 47,244 21,969 33,061 63,683 30,622 NOA 12,320,315 303,837 LA Exp. 10,806,398 84,308 NL 14,367,221 105,830 15,291,877 105,040 924,656 13,198,492 71,639 14,428,087 83,813 Subtotal, Federa I fun~ _____ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -25 ------------ -790 I. 229,595 12, 174 Total Federal funds are distributed as follows: /968 Enacted ______ Repayments __ ( A) _________ (D) _______ - NOA Exp. LA 12,762,919 106,780 11,698,240 -950 ------------------1,603,790 ------- 1,499,766 512 - - - - - 486 - NL 72,589 -95 0 ----------- 1969 NOA LA Exp. NL Transmitted __ 15,208,877 107,140 14,287,013 85,913 Repayments __ ---------- -2, 100 ---------- -2, 100 ( A) ________ _ 94,048 ( B) ________ _ 83,000 47,000 ( D) 26 Trust Funds SOCIAL SECURITY ADMINISTRATION Limitation on salaries and expenses __ (600,459) (631,500)} (72,555) D (12,373) (778, 145) (61, 717) 1968 supplemental covers additional work created by 1967 amendments to the Social Security Act, higher than budgeted costs of the health insurance program, and reducing pending caseloads in all programs. 1969 estimate provides for a 2.8% increase in social security workload, and a 3.6% increase in output of health insurance carriers and fiscal intermediaries. A Limitation on construction ____ _ (43,189) ______________________________________ Previous limitation will cover construction activity in 1968 and 1969. Federal old-age and survivors insur- NOA 23,257,203 24,005,030 ance trust fund (permanent) LA 114,000 ------------- 654 Receipts appropriated: (Employment taxes) _________ _ (Deposits by States) ________ _ (Interest on investments) ____ _ (Reimbursement for military service credits). (Federal payment for benefits for certain uninsured persons). (Other) ____________________ _ 27,301,843 -114,000 3,296,813 -114,000 (20,731,593) (21,003,000) (23,602,000) ( 2, 599, 000) ( 2, 033, 000) ( 2, 300, 000) (267,000) (725,228) (891,000) (982,000) (91,000) (78,000) (78,000) (78,000) ------------ ( I, 835, 408) ----------- -------------(974) (30) (225,545) (225,545) (298) (268) Proposed for separate transmittal under existing legislation. other than pay supplemental. B Proposed for separate transmittal under proposed legislation. D Proposed for separate transmittal, civilian pay act supplemental. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The old-age and survivors, and disability insurance programs provide insurance against income loss due to death, retirement, or disability. The Social Security Amendments of 1967 provided for a decrease in combined employee-employer tax rate from 7.8% to 7.6% on Jan. I, 1968, increasing to 8.4% on Jan. 1, 1969. The contribution base was increased from $6,600 to $7,800 on Jan. 1, 1968. The percentage of taxable wages appro• priated to the disability insurance trust fund (now 0.7%) increased to 0.95% on Jan. I, 1968. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued ------ ---------· Account and functional code ------- 1 e~!}t~d I ------ ------~-- e,)?!~te e,)i9!~te Explanation I }.:~:::~\ 0_r:)I DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued - - - - --------- Trust Funds-Continued SOCIAL SECURITY ADMINISTRATIONContinued Federal old-age and survivors insurance trust fund-Continued Expenditures: Exp. [Benefit payments) __________ _ [Vocational rehabilitation services). (Administrative expenses and construction). (Payment to railroad retirement account). ( Investments m non-Federal securities). NL 19,728,065 21,650,374 24,680,936 3,030,562 Increases in expenditures reflect additional beneficiaries and an 114,000 _----- -- ____ _ -114, 000 -114,000 increase in average payments. The 1967 amendments to the (18,885,714) (20, 742, 000) (23, 711, 000) (2, 969, 000) Social Security Act further increased expenditures by raising (90) (672) (291) (381) average benefits by 13% and the minimum benefit for retired workers by 25%. Combined with other new benefits, the (334,215) (414,916) (-818) changes increase total benefits by $2.1 billion in 1968 and $3. 4 (456,934) } A (43, 166) A (330) billion in 1969. This will be partially offset by increases in (508,046) (450,000) (512,000) (62,000) taxes of $1 billion in 1968 and $3.7 billion more in 1969. (114,000) ------------- Federal disability insurance trust NOA fund (permanent) ________ 654 LA Receipts appropriated: (Employment taxes) ___ _ (Deposits by States) ____ _ (Interest on investments) ____ _ (Reimbursement for military service credits). (Other)_ 2,258,024 74,000 2,838,292 (2,066, 166) (183,231) (66,241) (16,000) (2,499,000) (243,000) (80,000) (16,000) (386) (292) Exp. NL I. 996,575 74,000 ( 1. 860, 789) Expenditures: (Benefit payments) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,267,777 ------ (2, 118, 000) (-114,000) (-114,000) 3,729,049 -74,000 890,757 -74,000 (3, 203, 000) (704,000) (311,000) (68,000) (125,000) (45,000) (16,000) __ (49) (-243) 2,691,391 -74,000 (2, 521, 000) 423,614 -74, 000 (403,000) The numbers of beneficiaries are as follows (in thousands): Retired workers and their dependents. Survivors of deceased workers_ _ Disabled children of retired and deceased workers. Disabled workers and their dependents. Noninsured and transitionally insured persons over age 72. /967 actual estimate /969 estimate 14, 789 15, 437 15, 925 5, 420 210 5, 724 229 6,076 256 2, 060 2, 258 2, 468 729 779 690 /968 (6,534) (Vocational rehabilitation services). (Administrative expenses and construction). (Payment to railroad retirement account). ( Investment in r{on-Federal securities). (98,617) (Benefit payments) __________ _ (Investment in non-Federal securities.) (Administrative expenses and construction). A (17,024) (I, 637) (109,818)} (4,572) (20,000) ( 134, 367) (19,977) (19,000) (-1, 000) (-74, 000) (-74, 000) A (30, 634) (74,000) --------- Federal hospital insurance trust fund NOA (permanent) ______________ 651 LA Receipts appropriated: (Employment taxes) ________ _ (Deposits by States) ____ _ (Federal payment for hospital insurance expenditures for the uninsured). ( Interest on investments) __ (Rti,1,bursement for military service credits). (Receipts from railroad retirement account). (Other) Expenditures: (15,387) Exp. NL 3,073, 730 15,000 4,277,642 5,033,235 -15,000 755,593 -15, 000 ( 2, 482, 722) (205,962) (326, 850) (3,289,000) (324,000) (540,935) (3,964,000) (392,000) ( 465, 227) (675,000) (68,000) ( - 75, 708) ( 45, 882) ( 11, 000) (68,000) (11,000) (131, 000) (11,000) (63,000) (16,305) (44,049) (55,000) (10,951) (8) (658) (8) ( -650) 2, 59\ 713 3,452,446 3,962,060 -15,000 15,000 ------------(2, 507, 773) (3,369,000) (3, 865, 000) (15,000) ____________ _ (-15,000) (88,940) (81, 165) (2,282) A (97,052) } A 509,614 Increased hospital insurance trust fund expenditures in 1969 -15, 000 result from: (I) growth in the number of covered aged; (2) (496,000) higher hospital and extended care facility costs; (3) increased -15,000 utilization. (13,613) (8) Proposed for separate transmittal under existing legislation, other than pay supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Federal hospital insurance for the aged (Medicare) consists of 2 trust funds: (I) the hospital insurance fund which p1ys for services rendered to almost all the aged by hospitals, extended care facilities, and home health agencies: and (2) the sup-,lementary medical insurance fund which pays for doctors' bills and relared services tor over 9il% of tne aged wno nave voluntarily enrolled in the supplementary program. The hospital insurance program is currently financed by a 1.2% employer-employee payroll tax for persons covered by the social security and railroad retirement systems, and by general fund payments for services rendered to eligible aged persons not insured by either of these systems. The supplementary program is financed by a monthly premium pa'"nent by ea•h enrollee which is matched by appropriations. The current $3 monthly premium payment will increase to $4 on Apr. I, 19oJ. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued I Account and functional code e~:c\~d I es~i9;~te .. ~?;~te I}.:~::~:\"..':)I Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued -------------- ~M Trust Funds-Continued SOCIAL SECURITY ADMINISTRATION- to q Continued 1:::1 Federal supplementary medical in- NOA surance trust fund (permanent). I, 284, 734 I, 473,268 I, 809, Oil 335,743 651 Receipts appropriated: (Contributions) ______________ (Federal contributions) _______ (Interest on investments) _____ (Other) _____________________ Expenditures: (Benefit payments). _________ (Administrative expenses and construction). Exp. (646,682) (623,000) (15,041) (11) (714,000) (738, 724) (20,000) (544) 798,943 (664,261) (134,682) I, 611,895 (1,473,000) (117,035) A(21,86J) (895,000) (895,000) (19,000) (11) (181,000) (156,276) (-1, 000) (-533) 1969 estimates for the supplementary medical insurance trust fund reflect the normal increase in enrollees and full-year effect of the increased monthly premium. Increased expenditures in 1969 result from this increase in enrollees, estimates of higher physicians' charges, and expanded benefits provided in the 1967 amendments to the Social Security Act. a M >-3 >rj 0 :,:i >rj H Ul 0 I, 822,845 210,950 The number of beneficiaries are as follows (in millions): (I. 656,000) (183,000) 1,68 /969 /967 estimate estimate actual (166,509) } (27,950) Hospital insurance program _____ A(336) 4.5 4.6 4.4 Supplementary medical insurance program ____________________ 7.4 7. 5 7.6 > t< ,<j M > ::ti ,... <D 0, Total. Social Security Ad- NOA 29,873,691 32,594,232 ministration. 203,000 ------------LA 28,982,492 Exp. 25,120,296 NL 203,000 ------------- 37,873, 138 -203,000 5,278,906 -203,000 33,157,232 -203,000 4. 174,740 -203,000 ca PUBLIC HEALTH SERVICE Public Health Service trust funds (permanent 1 651 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. 364 411 260 -151 311 388 375 -13 Gifts and contributions are expended for the specified purposes or are used to further the work ot the Public rlealth ::,ervice. SPECIAL INSTITUTIONS Freedman's Hospital trust funds Exp. 651 3 ----------- ------------- -3 (These funds are for the benefit of the Hospital.) OFFICE OF THE SECRETARY Advances and reimbursements Exp. 659 Subtotal. trust funds _____ _ 35 ------------- NOA l9, 874,055 LA 203,000 Exp. 25,120,642 NL 203,lOO 32,594,643 ------------- 28,982, t83 - ---- - - - --. ------------- ------------ 37, 873, ~96 -203,000 5,278, 755 -203,000 33,157,607 -203, 000 4,174,724 -203, 000 Total trust funds are distributed as follows: 1968 NOA Exp. Enacted _____ (A) ________ 32,594,643 (D) --------- 28,899,444 71,880 11,559 ---- - --------- 1969 NOA Adjustments lnterfund and intragovernmental NOA }-1,055,962 transactions ________________ 650 Exp. -I, 386,103 -I, 691,040 -304,937 } -4,342 } -512 } -623 }(-2, 942) -4,290 -3,141 I, 149 -3, 139 -2, 146 993 -741 -773 -32 Applicable receipts from the public NOA 650 Exp. 700 NOA Exp. 850 NOA Exp. Repayments deposited in general LA fund (included in detail above). NL A D (-950) (-2, 100) (-/, 150) Proposed for separate transmittal under existing legislation, other than pay supplemental. Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. NL 37,873,398 -203,000 33,154,631 -203,000 1,348 -------- --------1,628 Transmitted_ (A) ______ (D) ---- LA - Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate 1 1ncrease or I decrease ( - ) Explanation DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE-Continued -----· ----·· Total, Department of Health, NOA Edu cation, and Welfare. LA Exp. NL 41,132,931 506,837 45,567,591 105,830 SI, 468,175 -97,960 s, 900,584 34,865,601 287,308 40,787, 102 71,639 45,888,594 -119, 187 5,101,492 -190, 826 Totals for the Department are distributed as follows: -203, 790 1968 NOA Enacted _____ Repayments_ (A) ________ LA Exp. NL 43,963, 89 106,780 39,203,411 72. 589 -950 ---------950 --------I. 603,790 -------- 1.571. 646 --------( D) ________ 12,045 --------512 -------/969 NOA LA Exp. 51,385,175 -95,860 45.744,544 --------- -2, 100 --------95. 396 ---------------47,000 83,000 -------( B) - - - - - - - ( D) ________ 1,654 --------- -------- Transmitted_ Repayments_ (A) ________ NL -117,087 -2.100 --------- --------- --------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Funds RENEWAL AND HOUSING ASSISTANCE General and special funds: Grants for neighborhood facilities https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA 17,000 30,000 40,000 10,000 553 Exp. 834 15,000 32,000 17,000 Estimate will fund about 130 facilities to provide needed services in low-income neighborhoods, 28 more than assisted in 1968. "' 0 i 0 0 I Alaska housing ______________ 55 I NOA Exp. ----------- Salaries and expenses, renewal and housing assistance: (Public housing programs) __ 552 NOA ----------- 18,903 n52s Exp. ----------- 19,431 (Urban renewal and community NOA facilities) _______________ 553 Exp. ----------- 12,710 n352 --------------------- Total, salaries and ex- NOA penses, renewal and hous- Exp. ing assistance. - - - - - - -- - - - ----------- 1,000 ====::=:=::==! NOA NOA NOA Exp. NL Rehabilitation loan fund _____ 55 I NOA Exp. NL ).000 2,307 21.738 2,307 14,622 1,560 13,062 14,622 1,560 32,493 36,360 3,867 32,493 36,360 3,867 15,395 -- - - - - - - -- - - - ----------725,000 100,000 750,000 (725,000) 387, 141 58,263 (850,000) 499, 105 895 1,396 -------------87 I, 370 5,308 1,000 I 21,738 Public enterprise funds: Urban renewal programs _____ 553 Contract authorization: Current_ _________________ _ Permanent_ ______________ _ Liquidation of contract authorization. 1,000 16,587 } } -~,i:i l (I, 250, 000) 699, 110 I I, 890 400,000 (400,000) 200,005 10,995 ------------- ------------529 19,029 -442 2,442 Proposed for separate transmittal under existing legislation, other than pay supplemental. B Proposed for separate transmittal under proposed legislation. DProposed for separate transmittal. civilian pay act supplemental. A cc Includes $350,000 thousand to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Estimate is for the start of a new program to assist the State of Alaska in providing housing for low-income residents. Increases are for additional staff and administrative costs for renewal and housing assistance programs. An appropriation of $750 million is already enacted for I 969. An additional $500 million is requested to fund projects in approved Model Cities programs. The budget also includes a $1,400 million advance appropriation for 1970. (Balances of prior year loan authority will allow $20 million in loans in I969, covering 3,560 residential and business properties in urban renewal and code enforcement areas.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted estimate estimate Increase or I (- ) I decrease Explanation DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT-Continued Federal Funds-Continued RENEWAL AND HOUSING ASSISTANCE-Continue:! Public enterprise funds-Continued Low-rent public housing: Annual contributions_ .. ___ 552 Administrative expenses__ NOA 255,000 NOA Exp. 257,173 Limitation on administrative expenses. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 358,000 59,000 13,725 NL 265, 301 326, 308 } 55,007 A 15,000 A9, 000 10,528 19,944 -15,053 -34,997 (1. 123) ------------- -------- ------------ LA 80,000 Limitation on nonadministrative expenses. Housing for the elderly or handicapped fund ____________ 551 Authorization to spend debt receipts. Appropriation for participation sales insufficiencies: Current, indefinite ______ _ Current, definite ____ _ 275,000 } A24, 000 The estimate, together with balances of previously enacted loan authority, will permit $85 million in new loans covering about 6,900 units of rental housing for elderly or handicapped persons and families with low or moderate incomes. 100,000 LA NOA NOA Exp. NL ZS, 000 1,156 -------~~~ 60 _} -4. 446 77,469 ( 1. 232) -5, 481 89, 050 (1. 232) } D(40) The supplemental in 1968 and the increase in 1969 reflect a rising number of dwellings eligible for annual contributions, reaching 758,735 in 1969. -5, 388 98, 425 (1.282) z, 104 93 9,375 (10) Increase is for interest insufficiencies on participation certificates. College housing loans: 702 Authorization to spend debt receipts: Current_ _____________ _ Permanent_ ______________ _ Appropriation for participation sales insufficiencies: Permanent, indefinite __ _ Current, indefinite __ _ Current, definite ______ _ I I LA LA - - -- 1,600,000 300,000 NOA NOA NOA Exp. NL - --------- NOA LA Exp. NL 1,029,057 680,000 1,236,436 2,025,000 638,278 513,631 838,147 442,606 Limitation on administrative expenses. Total, renewal and housing assistance. 600,000 ------ - -- - I 285,000 }-1,315,000 300,000 10,739 1,541 - - - - - - - - - - - 13,048 -- - - - - -3,794 362,063 (2,089) 16,816 316,130 (2,200) } D (75) 12,061 } 51,230 39,504 Loan authority previously enacted will be used under proposed legislation providing a revised interest rate to assure that loans are made to colleges which cannot borrow privately at reasonable interest rates. Space for about 50,000 students will be provide J through $300 million in new loan approvals. The $285 million in loan authority is from participation sales authorization. ln~rease in NOA is for interest insufficiencies on participation sales. --- 69,114 257,100 (2,285) 52,298 -59,030 (10) 1,751,911 515,475 610,000 -1,415,000 1,166,975 371,391 328,828 -71,215 METRO POLIT AN DEVELOPMENT General and special funds: Urban planning grants _______ 553 NOA Exp. Metropolitan development incen- NOA tive grants ________________ 553 Exp. Open space land programs ____ 553 Liquidation of contract authorization. A B D DD NOA Exp. 33,000 45,000 21,849 31,000 ----------- ----------------------- ------------- DD B 55,000 10,000 46,000 15,000 10,000 10,000 B3,000 3,000 Proposed legislation is for incentive grants for certain Federal aid projects in metropolitan areas which show that areawide development activities are carried out in accordance with comprehensive planning. 821 ------------- ------------- ------------ (Balance of contract authorization provided in 1966 will support (75,000) (85,000) (10,000) 605 grant approvals in 1969 totaling $85 million to preserve 60,021 60,000 -21 76,420 acres of open space land, create 120 small urban parks and carry out related activities.) (54,179) 19,860 Proposed for separate transmittal under existmg legislation. other than pay supplemental. Proposed for separate transmittal under proposed legislatlOn. Proposed for separate transmittal, civilian pay act supplemental. Includes $16.162 thousand to carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Estimate will fund 980 planning grants to State, local, metropolitan, and regional planning bodies. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted estimate estimate Increase or (- ) I decrease I Explanation DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT-Continued - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -------- .. -- ---- Federal Funds-Continued METROPOLITAN DEVELOPMENT-Con. General and special funds-Continued Grants for basic water and sewer NOA facilities __________________ 553 Exp. 100,000 165,000 150,000 -15,000 5,691 90,000 130,000 40,000 Grants will be approved for water and sewer facilities for 290 "communities in 1969. Grants to aid advance acquisition Exp. of land ___________________ 553 ----------- 30 500 470 (Balance of $5 million 1966 appropriation will support grants to pay interest costs on 5-year loans for acquisition of land to be used for future State and local public facilities.) Salaries and expenses, metropoli- NOA tan development_ _________ 553 Exp. ----------- 6,031 DJ95 8,700 2,474 Increase will provide for additional staff and other administrative costs for metropolitan development programs. ----------- 6,226 8,700 2,474 5,090 2,040 -3,050 15,000 65,000 Public enterprise funds: Public works planning fund ___ 553 Exp. Urban mass transportation fund NOA 553 Permanent_ _____________ NOA Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NL 10,476 735 ----------130,000 125,000 42,915 -200 99,800 -200 (Repayments of previous advances will fund $8.5 million of approvals without additional NOA.) $175 million appropriation, already enacted, will support $10 million of research and development and $165 million of grnnts for design, construction, and improvement of urban mass transportation systems. An additional $15 million appropriation is 149,810 50,010 -200 -----------requested to begin a $25 million research and development program. Budget proposes $230 million advance appropriation for 1970. 175,000 } Public facility loans: Current, indefinite___ _____ 553 Current, definite ____ _ Permanent, indefinite ________ _ Authorization to spend debt receipts. 342 NOA NOA NOA NOA LA Exp. NL -- - ---- - - ----------- 269 79, 731 254 55,914 (I, 205) Limitation on administrative expenses. Revolving fund (liquidating pro- Exp. grams) ________________ _55 I NL Limitation on administrative expenses. -566 -493 (I IO) - - - -- _, ----868 1,325 473 79,527 1,516 41.374 (I. 187)} D (40) -2,457 -450 (100) : ~; l 2,237 Increase in NOA will pay interest insufficiencies on a larger face amount of participation certificates outstanding. Loan authority is from additional participation sales authorization. 79,932 4,677 49,730 (I. 235) -174 -425 (!04) 3, 161 8,356 (8) 2,283 (The expenditure increase reflects the liquidation in 1968 of $1.9 25 million in assets acquired under expired programs.) (4) I 265, 167 79, 731 343,892 79,527 100,479 55,221 418, 198 79,932 74,306 405 291.226 40,724 404,553 49, !05 113,327 8,381 _553 NOA 11,000 212,000 500,000 732 25,000 288,000 Exp. 250,000 225,000 Total, metropolitan development. NOA LA Exp. NL DEMONSTRATIONS AND INTERGOVERNMENT AL RELATIONS General and special funds: Model Cities programs __ Urban information and technical NOA assistance _______________ 553 Exp. -- ---- - - ----- ----- 2,200 5,000 2,800 500 3,000 2,500 Community development training NOA programs ________________ 553 Exp. ------ ·------- - - - 3,000 7,000 4,000 500 4,700 4,200 Fellowships for city planning and NOA urban studies _____________ 553 Exp. 500 500 30 348 n Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 500 - 491 ---------- 143 Increase is for supplementary grants to cities to assist in the social and physical restora,ion of large blighted neighborhoods. Increase in matching grants to States will help them provide a larger number of smaller communities with information and technical assistance on urban problems. Increase in matching grants to States will help them provide additional training in community development skills. Estimate will provide JOO graduate fellowships in city planning and related fields. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted estimate estimate Increase or (- ) I decrease I Explanation DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT-Continued Federal Funds-Cont inued DEMONSTRATIONS AND INTERGOVERNMENTAL RELATIO NS-Con. General and special funda-C ontinucd Salaries and expenses, demons tra- NOA tion and intergovernmental relations ______ _ 553 Exp. Total, demonstrations and mtergovernmental relatio ns. NOA Exp. --- ---- --- I, 814 D45 } I, 860 I 1,860 1 ---------- I. 859 II, 500 762 219,559 514,360 294,801 28,207 260,051 231,844 500 10,000 3,000 zo, 000 10,000 708 Provides for administrative costs of demonstrations and intergovernme ntal relations programs other than the Model Cities programs. URBAN TECHNOLOGY AND RESEARCH Urban research and technology_ 553 NOA Exp. Low income housing demons tra- NOA tion programs __________ _551 Liquidation of contract auth onExp. zation. Special studies __ 551 Total, urban technology and research. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7,300 75 ------------- - - - - - - - - (1,500) 2,357 - 4,300 - - ------------ (2,000) I, 800 (4,496) 3,800 (2,496) 2,000 NOA Exp. 1,500 ------------I, 294 612 ------- - - - - - ------------ NOA Exp. 2,075 10,000 3,677 6,094 395 zo, 000 II, 495 -899 10,000 5,401 Increase is for research into urban and housing problems and technologi es, and includes support for Institute for Urban Developm ent. (Existing contract authority will allow continuation of grants for testin g and demonstrating new and improved methods of housing low income families.) (Report on earthquake insurance is due Oct. 31, I 968. Report on housing a nd building codes, zoning, tax policies, and development stan dards is due Dec. 31, 1968.) MORTGAGE CREDIT Federal Housing Administration Rent supplement program ____ 551 NOA Exp. 2,900 809 6,100 3,600 16,600 16, 100 10,500 12,500 Increase reflects growing number of housing units occupied. Approval is requested for an increase of $65 million in annual payment contracts to help provide an additional 72,000 units for low income families. Community disposal operations Exp. fund _____________________ 552 NL -5,806 3,600 -3,205 2,320 -7,417 -725 -4,212 -3,045 (Receipts from sales of properties and mortgages will exceed costs of selling properties at Los Alamos, N. Mex.) Federal Housing Administration Exp. fund _____________________ 551 NL Limitation on administrative expenses. Limitation on nonadministrative expenses. 28,977 17,348 (IO, 6~0) -95,524 61,619 (11,000) -87, 178 113,300 (11,950) (85,000) (87,000) (95,600) Public enterprise funds: 8,346 (Receipts from premiums, fees, and sales of property acquired in 51,681 connection with defaults of insured mortgages will offset in(950) surance claims payments and other expenses to a lesser extent in 1969 than in 1968. Increased applications will cause higher (8,600) operating expenses.) Federal National Mortgage Association Loans to secondary market opera- NOA tions (authorization to spend Exp. debt receipts) _____________ 551 Special assistance functions (authorization to spend debt receipts): 551 Current___ __________________ LA Permanent_ _ _ LA Exp. NL D 110,000 ------------- ------------- ------------ (Expenditure increase reflects purchase of preferred stock in the - __________ 20, 000 28, 000 8, 000 FNMA secondary market operations as needed to support borrowing from the public.) 800,000 -3,352 109,344 250,000 550,000 420 639, 180 Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 655,000 525,000 20,360 410,240 380,000 19,940 -228, 940 Increase represents additional authority for participation sales. Total program of $575 million of reservations and commitments for mortgage purchases is primarily for low and moderate income housing. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate 1 1 ncrease or I decrease ( - ) Explanation DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT-Continued Federal Funds-Continued MORTGAGE CREDIT-Continued Federal National Mortgage AssociationContinued Public enterprise funds-Continued Management and liquidating functions (authorization to spend debt receipts): 551 Current____ _________________ LA Permanent_ ___ LA Exp. NL Participation sales fund: (Financing farm and rural hous- Exp. ing) ___________________ 352 NL (Advancement of business) _506 Exp. NL (Aids to private housing) __ 551 Exp. NL (Urban renewal and community Exp. facilities) _______________ 553 NL (Assistance to higher education) Exp. 702 NL (Veterans readjustment bene- Exp. fits) ___________________ 803 NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 440,000 16,037 -12, 558 420,924 6,606 13,745 -7, 797 32,501 -15, 740 56,264 105 286 -136 1,862 -14, 634 42,519 355,000 82, 708 I, 420 366,580 -17,303 -------------9,453 -------------16, 765 -------------33 ------------1,981 ------------- -4, 158 ------------- 550,000 112,292 2,095 52,405 675 -314, 175 -5, 745 -13, 745 -9,249 -34,336 -3, 783 -71,344 179 -286 2,222 -1,862 -10,642 11,558 -13, 745 204 -34,336 12,982 -71, 344 212 -286 241 -1, 862 -6,484 -57, 599 -57,599 Loan authority is from participation sales authorization. Decrease in net lending is due to lesser need to acquire mortgages on sale of FHA-acquired housing as revised interest rate makes private financing available. This fund retains and invests collections on loan obligations placed in participation pools and distributes interest and principal to certificate holders. Sales of participations in 1968 are projected at $4 billion and in 1969 at $3.2 billion in pools of loans of the Farmers Home Administration, the Small Business Administration, the Department of Housing and Urban Development, the Public Health Service, the Office of Education, and the Veterans Administration. Limitation expenses. on (9,931) administrative Total, mortgage credit__ NOA LA Exp. NL nz, 900 (9,600) } D (340) (IO, 340) (400) l, 256,037 6,100 l, 237,708 16,600 l, 730,000 10,500 492,292 -23,526 698,393 -119,020 1,069,699 -55,058 396,048 63,962 -673, 651 8,000 3,893 8,000 3,893 8,925 3,513 8,925 3,513 DEPARTMENTAL MANAGEMENT General and special funds: General administration _______ 553 NOA ----------- 3,972 DJ35 Exp. ----------- 4,107 Regional management and ser- NOA vices _____________________ 553 Exp. ----------- 5,252 DJ60 ----------- 5,412 Office building equipment and NOA furnishings _______________ 553 Exp. -85 Salaries and expenses, Office of NOA the Secretary _____________ 553 Exp. 13,004 Payment of participation sales in- NOA sufficiencies _______________ 551 Proposed housing and urban <level- NOA opmentlegislation ________ _550 Exp. 575 ------------- } } 3,132 ------------- ----------- ------------------------- -660 was for new equipment and furnishings for the new headquarters building in Washington.) ------------ (Account formerly financed various administrative costs now -3, 132 funded from other accounts.) -7,928 1968 appropriation is amount not transferred to other accounts to meet 1968 insufficiencies. B30,000 30,000 14,000 14,000 First year cost of new and revised housing and urban development programs. -3,045 -2,845 7,928 ------------- ----------- Increase will provide for additional staff and other administrative costs of regional office management and certain common regional programs. ------------- ------------ ( 1967 appropriation 660 ------------- 13,354 ------------- ------------- ----------- Increase will provide for additional staff and other administrative costs of overall departmental supervision. B lntragovernmental funds: Administrative operations fund 553 B D Exp. ----------- -200 Proposed for separate transmittal under proposed legislation. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Funds available for operating costs are consolidated into a single fund to facilitate financing complex operations.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate Increase or I (- ) I decrease Explanation DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT-Continued Federal Funds-Continued DEPARTMENT AL MANAGEMENT-Con. lntragovernmental funds-Continued Working capital fund ________ 551 NOA Exp. ----------- ------------250 ----------- Z,000 2,000 200 -50 Total. departmental management. NOA Exp. 13,929 17,447 48,925 31,478 12,919 13,361 28,080 14,719 Subtotal, Federal funds _____ NOA LA Exp. NL 1,434,628 2,015,768 1,833,434 3,342,235 2,769,994 2,419,932 936,560 -922,303 732,589 1,267,245 1,058,015 1,553,029 1,816,096 816,544 758,081 -736,485 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Appropriation is for equipment and working capital to hand!e certain consolidated services of the Department. Total Federal funds are distributed as follows: /968 NOA LA Exp. NL Enacted ____ (A) _______ 1,808,019 3,342,235 1,041,600 1,553,029 24,000 --------15,000 ------(D) _______ 1,415 --------1,415 ------/969 NOA LA Transmitted 2,729,994 2,419,932 (A) _______ (B) _______ ·-------- --------40,000 --------- Exp. NL 816,544 1,790,096 9,000 ------17,000 ------- T rust Funds MORTGAGE CREDIT Federal National Mortgage Association secondary market operations (trust revolving fund) (authorization to spend debt receipts) : 55 I Current_ ____________ - _________ LA Permanent_ _____ ------------- LA Exp. 3,822,510 108,762 536,655 -23,506 830,655 --is9:ooo- }-377 ,655 -63,100 2,012, JOO 9,800 -53,300 643,300 -1,368,800 }-13,7/8 -9,394 -38 -38 1,420,872 5,947,040 1,824,002 3,878,890 2,763,256 939,254 2,578,932 -1 ,299,958 695,327 2,097,900 985,483 3,565,129 1,756,058 770,575 1,459,844 -2. 105,285 NL ------------- -- Mortgage purchases of $ I billion reflect proposals to lift ceiling on mortgage interest rates and to transfer operations to private ownership. Loan Authority reflects increase in authorization to borrow from public, which is limited to 15 times invested capital and retained earnings. Adjustments nterfund and intragovernmental NOA transactions. _______________ 550 Exp. Applicable receipts from the pub- NOA lie_ _______________________ .550 Exp. Total, Department of Hous- NOA mg and Urban Develop- LA Exp. ment. NL } -6,700 2,694 -38 -----------Totals for the Department are distributed as follows: /968 NOA Enacted .. __ ( A) ________ (D) _______ LA Exp. 1,798,587 3,878,890 24,000 --------1,415 --------- NL 969,068 3,565,129 15,000 --------1,415 --------- /969 NOA LA Transmitted 2,723,256 2,578,932 ( A) ________ --------- --------( B) ________ 40,000 --------AProposed for separate transmittal under existing legislation. other than pay supplemental. BProposed for separate transmittal under proposed legislation. DProposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. NL 1,730,058 1,459,844 9,000 --------17,000 --------- Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I decrease ( -) I Explanation DEPARTMENT OF THE INTERIOR Federal Funds PUBLIC LAND MANAGEMENT Bureau of Land Management General and special funda: Management of lands and re- NOA sources __________________ _401 56,773 Exp. 57,392 A A Construction and maintenance_ 40 I NOA Exp. Public lands development roads and trails: 401 Contract authorization: Current_ _________________ _ NOA Permanent_ ______________ _ NOA Liquidation of contract authoriExp. zation. 49,135 11,000 0 733 50, 131 J0,000 } 51, 750 50,289 1,000 1968 supplemental is for firefighting and rehabilitation. 1969 -8,842 estimate provides for oil shale title clearance and cadastral survey, the Outer Continental Shelf leasing program, and replacement of obsolete, unsafe fire equipment. A 3,032 3,900 4,156 3,634 3,708 4,327 3,000 -9,118 256 619 -1,500 (2,000) I, 871 ____F_3,SOO_} (2,600) (4,500) 4,500 2,972 Oregon and California grant lands NOA (indefinite, special fund) ___ 40I Exp. 11,496 JO, 881 12, 175 1,294 19,591 12,200 12,000 -200 Range improvements (indefinite, NOA special fund) ______________ 401 Exp. 1,474 1,444 ], 500 1,561 I, 420 1,300 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5,000 (I, 900) I, 528 56 -120 Provides for continued construction of the Boise Interagency Fire Center and for construction of district office building at Baker, Oreg. Approximately 145 miles of grading, 72 miles of road surfacing, construction of 3 bridges, and 25 miles of trails are planned in 1969. 25% of the revenues from these lands is available for road construction and maintenance, reforestation, protection, and development, op~ration, and maintenance of recreation facilities. Amounts usually equal to 33% of grazing revenues are used for range improvement work. Permanent appropriations: Special fund _____________ 401 NOA Exp. Special fund ______________ 402 NOA Exp. Special fund ______________ 403 NOA Exp. 2,115 2,610 21,209 21. 210 48,067 48,368 2,125 2,325 22,380 22,380 49,986 49,986 98 -102 115 2,223 2,223 22,495 22,495 50,205 50,205 115 219 219 Revenues from mineral leasing, sale of timber, grazing leases and permits, and other revenue-producing operations are used in resource programs, or are paid to the States and counties. Permanent appropriation of receipts from land and water resources are devoted, in general, to improvements of roads, recreation facilities, and grazing lands. Those from forest resources may be used for expenses of timber sales, or for State or county roads, schools, etc. Mineral revenues are largely paid to States for educational and other purposes. lntragovernmental funds: Exp. -23 Total, Bureau of Land Man- NOA agement. Exp. 147,166 156,214 156,584 155, 141 148,004 148,339 117,523 125,568 } 1968 supplemental is due to failure in a salmon run and a flood disaster in Alaska. The increase in 1969 provides for an additional I, 970 students and basic improvements in Federal Indian schools, a new kindergarten program, 1,000 more I, 300 -----------persons in the vocational training and job placement programs, (390) and expanded efforts for repair of substandard Indian dwellings ( 1, 300) 36,77J and maintaining law and order. 152,556 } A 226 Advances and reimbursements-401 -19 19 ------------- -8, 580 -6,802 Bureau of Indian Affairs General and special funds: Education and welfare services: Appropriation _____________ 704 NOA Contract authorization (perma- NOA nent, indefinite) _________ 704 Liquidation of contract authorization. Exp. Resources management_ ______ 401 910 A2,260 0 2,267 1,300 (I, 100) 112,294 (910) 113,972 A 2,034 NOA 45, 126 47,179 ASOO Exp. 43,665 0 A D F I, 372 } 48,006 A 700 153,423 23,328 53,588 4,237 48,699 A 100 } 93 Proposed for separate transmittal under existing legislation, other than pay supplemental. Proposed for separate transmittal. civilian pay act supplemental. To carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The 1968 supplemental is for firefighting. The increase in 1969 is primarily for maintenance of new schools and for the mutualhelp and low-rent housing programs. Table. 14 ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or (- ) I decrease I Explanation DEPARTMENT OF THE INTERIOR-Continued Federal Funds-Continued PUBLIC LAND MANAGEMENT-Con. Bureau of Indian Affairs-Continued General and special funds-Continued Construction ________________ 401 NOA Exp. Road construction (contract authorization): Current_ ________________ -401 NOA Permanent__________________ NOA Liquidation of contract authorization. Exp. 56,063 40,770 32,299 -8,471 40,713 37,921 35,135 -2,786 The estimate includes construction of 7 new schools, additions to 14 existing schools, and construction of utility, irrigation, and water pollution control facilities. -3,000 The 1969 program includes 336 miles of grading, 555 miles of surfacing, and 2,000 feet of bridge construction. ----~~~~~~- ------z3;oiiii- -----~:~:~~~-} (16,889) 15,579 (18,000) 19,600 (20,000) 20,000 (2,000) 400 4,627 4,627 DJ40 4,817 50 Exp. 4,824 4,630 4,684 54 Miscellaneous appropriations (per- NOA manent, indefinite, special Exp. funds) __________________ -401 7,318 7,081 7,471 390 6,938 6,144 6,957 813 General administrative expenses NOA 409 409 NOA 13 10 Exp. 52 103 Administration is continued at about the present level. Revenue from irrigation and electric power projects is used to operate and maintain the projects. 10 ------------ Revenue from mineral deposits is used for acquisition of lands 10 -93 and loans to Indians in Oklahoma. Public enterprise funds: Revolving fund for loans ___ -401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LA Exp. NL ----------- -630 1,423 450 450 931 1,300 750 -300 -181 -1,600 Provides for loans to tribes to hire expert witnesses to appear before the Indians Claims Commission. Liquidation of Hoonah housing NL project revolving funds ____ -409 -4 109 6 -103 i (Balances are used for liquidation.) ! Intragovernmental funds: Advances and reimbursements_ 409 Exp. Total, Bureau Affairs. of Indian NOA LA Exp. NL -243 879 250,580 256,374 450 234,920 1,409 ----------223,191 1,419 -879 ------------- I 272,908 16,534 450 -----------269, II 7 34,197 -294 - I, 703 Bureau of Outdoor Recreation General and special funds: Salaries and expenses _______ -405 NOA 3,990 Exp. 3,577 Land and water conservation __ 405 Indefinite (special fund)______ NOA NOA Exp. ----------94,972 64,722 4,190 0 105 4,530 9,191 109,983 100,281 } 4,215 -80 4,249 -281 30,000 100,000 156,157 } 10,826 55,876 lntragovernmental funds: Advances and reimbursements-405 Exp. -43 Total, Bureau of Outdoor NOA Recreation. Exp. 68,255 123,469 104,888 134,215 160,406 55,518 10,209 304 10, 112 11,255 4,358 12,557 5,400 10,500 5, 719 17,949 4,500 -755 1,361 5,;92 -900 24,000 26, 127 35,310 98,962 77 ------------- Nationwide planning program reduced due to completion of first nationwide outdoor recreation plan. Estimate covers all anticipated receipts and an advance appropriation of $30 million, to be used for Federal acquisition of recreation lands and for assistance to States for planning, acquisition, and development of recreation areas. -77 10, 746 Office of Territories General and special funds: Administration of territories __ 910 NOA LA Exp. NL Trust Territory of the Pacific Is- NOA lands __ • _______________ .. 910 Exp. 5,000 19,194 14,848 Proposed for separate transmittal, civilian pay act supplemental. FTo carry out authorizing legislation to be proposed. D https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34,000 Estimate includes expanded grants and loans to Guam for capital improvements and to Samoa for operating expenses and construction projects. 10,000 Provides for improved operations and facilities for education, 9, 183 , health, and economic development in the Trust Territory, Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 I 969 estimate estimate Increase or I decrease ( -) I Explanation DEPARTMENT OF THE INTERIOR-Continued Federal Funds-Continued PUBLIC LAND MANAGEMENT-Con. Office of Territories-Continued General and special funds-Continued Claims of inhabitants of Rongelap Exp. Atoll__ ___________________ 910 48 Internal revenue collections for the NOA Virgin Islands (permanent, in- Exp. definite, special fund) ______ 9IO 11,074 12,368 11.074 12,368 40,477 304 Total, Office of Territories___ Total, public land management. -I (Final payment on claims will be made in 1968.) 12,468 100 12,468 100 Payments are made to the Virgin Islands equal to taxes collected on island products sold in the United States. 47,623 4,358 36,082 5,000 56,968 5, 719 9,345 1,361 51,053 5,400 65,727 4,500 14,674 -900 537,185 304 584,050 4,808 612,095 6,169 483,742 6,419 28,045 1,361 546,002 6,809 643,589 4,206 S7, 587 -2, 603 NOA 81,545 85,499 Dl ,577 94,756 7,680 Exp. 79,697 85,557 94,543 8,986 NOA LA Exp. NL NOA LA Exp. NL I ------------- MINERAL RESOURCES Geological Survey Surveys, investigations and research ________________ 409 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } Increases are in urban and heavy use topographic mapping, oil shale studies, earthquake research, flood plain mapping, ground water studies, cooperative Federal-State water resources programs, the International Hydrological Decade, marine resources evaluation and studies concerning remote sensing from satellites and from conventional aircraft. ; "" Miscellaneous appropriations (permanent, indefinite) _____ 403 1 ------------- ------------378 380 60 -----------2 (Payments to small lead and zinc producers to stabilize mining operations.) lntragovernment.al funds: Advances and reimbursements_409 Exp. Total. Geological Survey ____ -97 -100 ------------- NOA Exp. 81,546 79,659 87,076 85,835 Conservation and development of NOA mineral resources __________ 403 Exp. 35,093 35,797 D7)8 38,130 } 10,717 A300 D67 10,697 A250 } } f I NOA Exp. 100 94,756 94,923 7,680 9,088 39,015 2,500 38,738 608 Increase is for oil shale research, underground tunneling technology, and minerals resource studies partially offset by decreases in metallurgy and bituminous coal. 11,449 365 Increase is for a health and safety program for uranium miners. Bureau of Mines General and apecial funds: Health and safety ___________ 652 34,261 NOA 9,695 Exp. 9,626 General administrative expenses NOA 403 Exp. 1,532 1,494 1,532 D45 1,568 Drainage of anthracite mines __ 403 Exp. 155 100 11,804 A50 } 907 1,592 1,568 200 15 Estimate provides for support of research and resource development work at about the same level. -----------100 ( Increase provides Federal share of costs of installation of pumps.) Appalachian region mining area NOA restoration ________________ 507 Exp. 6,972 ------------- ------------- ------------ This account is transferred to Appalachian regional development 1,928 ------------- ------------- -----------programs. Solid waste disposal__ ________ 403 NOA Exp. 4,300 1,819 A D 3,367 2,167 -1,200 4,300 2,500 -1, 800 Propoacd for separate transmittal under existing legislation. other than pay supplemental. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decrease reflects stabilization of program level. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Explanation Account and functional code DEPARTMENT OF THE INTERIOR-Continued Federal Funds-Contin ued MINERAL RESOURCES-Con tinued Bureau of Mines-Continu ed Public enterprise funda: Helium fund (authorization to NOA spend debt receipts) _______ 403 Exp. 26,000 16,200 17,600 1,400 23,194 25,816 21,033 -4, 783 Estimate co ntinues conservation of helium at previous level. Increase i n NOA reflects lower level of carryover funds available. lntragovernmental fund ■ : ------------- ------------- ------------ Advances and reimbursements_ 40 3 Exp. 145 Total, Bureau of Mines ____ _ NOA Exp. 83,591 68, 743 71,823 3,080 72,620 80,861 75,893 -4, 968 8,203 10,980 13,900 2,920 9,987 10,393 14,000 3,607 869 104 763 869 106 Office of Coal Research General and ■ pecial fund ■ : Salaries and expenses _______ -403 NOA Exp. Provides for continuation of pilot plant construrtion. Office of Oil and Gas Salaries and expenses _______ -403 NOA 748 Exp. 731 NOA Exp. 174,088 167,564 181,348 13,784 162,997 177,852 185,685 7,833 Total, mineral resources __ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 740 ozs I } Provides for larger workload of the Oil Import Administration. FISH AND WILDLIFE AND PARKS Office of the Commissioner of Fish and Wildlife Salaries and expenses ________ 404 Exp. 92 3 ------------- - 3 (Activities from this account are now funded in the Office of the Secretary, Bureau of Commercial Fisheries, and the Bureau of Sport Fisheries and Wildlife.) 3,289 Increase is primarily for accelerating fish protein concentrate development. Bureau of Commercial Fisheries Management and investigations NOA of resources ______________ -404 Exp. ZI, 971 Management and investigations NOA of resources (special foreign cur- Exp. rency program) ___________ 404 23,725 27,014 304 JOO 200 100 200 Construction ________________ 404 NOA Exp. 1,245 5,096 2,600 1.200 -1, 730 -1,400 Decrease reflects completion of some construction and deferral of other work. Construction of fishing vessels_ 404 NOA Exp. 3,000 1,349 6,002 6,540 6,004 6,000 -540 z Program provides partial subsidization of construction costs on American fishing vessels. Federal aid for commercial fisher• NOA ies research and development Exp. 4,714 2,679 4,720 4,500 4, 7ZZ 4,500 z Program provides for the same level of cost-sharing apportionments to States for commercial fishery research and develop, ment. Anadromous and Great Lakes fish- NOA cries conservation ________ -404 Exp. Z,675 301 Z,393 1,475 Z,334 -59 Decrease reflects lower level of matching funds available for State and local agencies for conservation projects. General administrative expenses NOA 404 Exp. 693 699 720 718 730 725 Administration of Pribilof Islands NOA (indefinite, special fund) ___ 404 Exp. 2,164 Z,496 Z,633 2,700 22,029 500 404 D Z,496 23,375 I, 730 2,380 Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 26,266 1.800 2,891 Excess foreign currencies are used for translation of fisheries literature. 325 10 Activity will continue at about the same level. 7 137 320 Increase reflects additional personnel, maintenance, and operations costs. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1ncreaae or I decrease ( - ) DEPARTMENT OF THE INTERIOR-Continued Federal Funds-Cantin ued FISH AND WILDLIFE AND PAR KS-Con. Bureau of Commercial Fisheries-Continued General and special fund ■-Con tinued - Promote and develop fishery prod NOA ucts and research pertaining t 0 Exp. American fisheries (permanent, indefinite, special fund) ____ 404 6,778 7,444 7,000 6,493 7,700 7,300 -444 -400 A sum equal to 30% of customs duties on fishery products is appropriated for biological research, technological development, and general administrative services. The decrease reflects reduction in anticipated receipts. Payment to Alaska from Pribilof NOA Islands fund (permanent, in Exp. definite, special fund) ______ 404 300 33Z l1Z Decrease reflects reduction of available receipts from sale of fur 332 112 -zzo 300 Federal ship mortgage insurance Exp. fund, fishing vessels ________ 404 -490 -121 -125 Fisheries loan fund __________ 404 Exp. NL Limitation on administrative -24 1,354 (316) -56 I, 357 (344) 1,268 1,054 (347) - Public enterprise -220 fund ■ : -4 lntragovernmental and fund ■ : • reimbursement Exp. 404 Total, Bureau of CommerciaI NOA Exp. Fisheries. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -388 _.., ___________ (Premiums and fees are reserved for possible losses.) 1,324 (Increase reflects 4-year interest payments due to the Treaaury.) -303 (3) expenses. Advances sealskins. ------------- ------------ 44,372 49,662 50,649 987 40,512 1,354 49,643 1,357 51,946 1,054 2,303 -303 .... C0 Cl C0 Bureau of Sport Fisheries and Wildlife General and ■ pecial fund ■ : Management and investigations of NOA reaources _________________ 404 Exp. 38,878 Construction _______________ _404 NOA 8,619 Reappropriation______________ NOA Exp. 44,129 n79g 38,186 918 7,830 44,977 ----- A tm_} 9,000 A 1,000 46,354 1,427 46,021 1,044 1,203 -4,345 4,800 A72 Exp. 1,518 1,572 0 45 1,644 Migratory bird conservation ac- NOA count __________________ 404 Permanent (indefinite, special NOA fund). Exp. 6,000 7,500 7,500 5,385 15,015 5,000 10,300 5,000 9,440 General administrative expenses NOA 404 Appalachian region fish and wild- NOA life restoration projects ____ 507 Exp. Anadromous and Great Lakes NOA fisheries conservation ______ 404 Exp. 1,572 } } } -5, 128 1,634 17 1,650 6 }-----------860 Supplemental for 1968 is for construction and storm damage repairs at a laboratory and 8 wildlife refuges. Projects for 1969 include development of water management facilities, road construction, fencing and construction of recreational facilities, and water rights investigations. Activity will continue at same level. The sum of $7.5 million is to be advanced from general revenues ( to be repaid later). In addition, estimated receipts from sale of Federal duck hunting stamps are used for the acquisition of migratory waterfowl lands. 500 ------------- ------------- ------------ This activity is now included in Appalachian regional development programs. 62 ------------- ------------- -----------2,675 2,425 2,325 -105 States are reimbursed up to 50% of the cost of approved anadro05 mous fishery projects. 1,800 160 2,005 -205 } Miscellaneous appropriations NOA (permanent, indefinite, special funds) ___________________ 404 Exp. 35,845 28,031 41,230 29,900 40,066 38,430 -1,164 8,530 Total, Bureau of Sport Fish- NOA eries and Wildlife. Exp. 100,392 90,802 108,252 98,826 104,082 102,213 -4,170 3,387 A Proposed for separate transmittal under exi1ting legislation. other than pay supplemental. D Propoaed for separate tranamittal. civilian pay act 1upplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increases are for operation of 6 new refuges, 1 new fish hatchery, 2 new fish research labs, a renovated plane and purchase of a new boat, special area studies, research on chemical tools, increased ADP costs, and a new cooperative unit at Delaware State College. Assistance to States is provided by appropriations equal to the 10% excise tax on sport fishing equipment and the 11 % excise tax on manufacture of firearms and cartridges. 75% of net proceeds from sales of refuge products is used for refuge management and enforcement of game protection laws, and 25% goes to counties in which such refuges are located for schools and roads. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)---Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1 ncreue or I decrease ( - ) DEPARTMENT OF THE INTERIOR-Continued Federal Funds-Continued ,,3 ::i:: l°'J FISH AND WILDLIFE AND PARKS-Con. tll d National Park Service General and special funda-Continued Management and protection_ -405 NOA Exp. 1::1 C'l l°'J 37,446 35,634 Maintenance and rehabilitation of NOA physical facilities _________ -405 27,728 Exp. 26,969 General administrative expenses NOA 405 Exp. Preservation of historic properties NOA 405 Exp. Construction ________________ .if05 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. 2,569 2,483 40,638 AZ,100 D996 41,171 A2,IOO 29,820 D98 C474 29,396 } 44,531 } 44,530 } 797 1,259 32,990 2,598 32,987 3,591 2,569 0 75 2,624 2,969 325 2,956 332 770 1,168 385 ----------- D}3 ----------- 763 1. 168 405 11,612 22,295 13,889 17,212 2,277 -5,083 22,823 21,984 A 1968 supplemental is needed for fire suppression. 1969 increase provides for full-year operation of 5 new areas and new facilities to serve an anticipated increase of 17.6 million visitors. Increases are partially offset by a funding adjustment to General administrative expenses. The increase will provide maintenance for 4 new areas and permit better maintenance of roads and facilities. ,,3 1-.J 0 ::0 1-.J .... Ul (") > t< '< l°'J Increased NOA for 1969 reflects funding adjustment transferring expenses of the National Capital Regional Office from Management and protection. Increase is for additional grants to the National Trust for the Preservation of Historic Properties and to the States. Funds are provided for construction in 2 new areas and in existing park areas, including the program for beautification of the Nafion's Capital, and acquisition of water rights. > ::0 ... '°0> '° Parkway and road construction ( contract authorization): Current_ _________________ 405 NOA Permanent__________________ NOA Liquidation of contract authorization. Exp. Miscellaneous appropriations (per- NOA manent, indefinite, special Exp. fund) ____________________ 405 lntragovernmental Advances and 34,000 ------------41,000 ----------(32,500) 31,684 107 95 -41,000 (32,800) =============} (27,000) (-11,000) 32,165 34,228 2,063 118 120 117 120 2 3 Work, financed by prior appropriations, will be carried out on 4 parkways, 102 miles of major roads, minor roads, trails, and parking areas. Park visitor fees are used to provide educational facilities to dependents of park personnel, payment of tax losses to Wyoming, and for certain other costs. fund ■ : reimbursements Exp. 405 Total. National Park Service_ Total, fish and wildlife and parks. 1 25 ------------- -25 NOA Exp. 124,673 130,283 95,667 -34,616 118,850 130,656 133,201 2,545 NOA Exp. NL 269,437 288,197 250,398 -37,799 250,256 1,354 279,128 1,357 287,360 1,054 8,232 -303 15,053 16,259 16,877 14,892 16,000 618 17,300 1,300 178,065 -3, 752 180,965 14,012 WATER AND POWER DEVELOPMENT Bureau of Reclamation General and special funds: General investigations _______ -401 NOA Exp. Construction and rehabilita- NOA tion _____________________ -401 Exp. A Proposed for separate transmittal separate transmittal, separate transmittal, 100 thousand to carry C Proposed for D Proposed for EE Includes $31, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 192, 724 181,817 183,941 166,953 EE under existing legislation, other than pay supplemental. wage-board supplemental. civilian pay act supplemental. out authorizing legislation to be proposed Program includes project planning, economic studies, and engineering research, including atmospheric water research. Carryover balances with amount requested will finance construction on 47 projects and units estimated to cost $6.3 billion; of these, one will be a new project start estimated to cost $13 million. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate eatim'ate Increase or I decrease ( - ) I Explanation DEPARTMENT OF THE INTERIOR-Continued Federal Funds-Continued WATER AND POWER DEVELOPMENTContinued Bureau of Reclamation -Continued General and special funds-Continued 4Z,346 47,Z0l 51, Z30 40,528 48,740 49,700 960 Increase reflects new facilities coming into maintenance status, and costs of power purchase and wheeling requirements. General administrative expenses NOA 401 Exp. 11,180 11,683 lZ, 135 45Z Activity will continue at about the same level. 11,032 11,670 12, 120 450 Loan program _____________ _401 117 lZ,878 Z70 14, 730 151 4,349 -119 -10,381 128 16,739 270 14,120 151 7,529 -119 -6,591 -81 -823 -823 Operation and maintenance_-401 NOA Exp. NOA LA Exp. NL Repayments deposited in Recla- LA mation fund ______________ 401 NL Emergency fund ____________ 401 4,0Z9 Repayments on loans made in prior years. NOA Exp. 1,000 75 -695 500 1,195 Recreational and fish and wildlife NOA facilities, Colorado River storage Exp. project ___________________ 401 3,800 Z,750 2,673 -77 4,337 4,810 4,933 123 Other miscellaneous appropria- NOA tions (permanent, special Exp. funds) ___________________ 401 3,331 3,588 3,600 lZ 3,348 3,589 3,595 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decrease reflects reduced funding requirements on projects started in prior years. (This fund assures continued project operation in emergencies.) Provides for development of recreational fish and wildlife facilities. Includes appropriations of Colorado River Dam Fund revenues for payment of interest to the Treasury and other specific items. Public enterprise funds: Upper Colorado River Basin NOA fund _____________________ 401 Exp. 46,378 43,638 38,231 23,000 -15,231 39,690 29,850 -9,840 Continuing fund for emergency Exp. expenses, Fort Peck project, Montana _________________ 401 -2,426 -1,265 -1,443 -178 lntragovernmental funds: Advances and reimbursements_ 401 Exp. Total, Bureau of Reclama- NOA LA tion. Exp. NL Decrease reflects reduced requirements for major storage dams and transmission lines. (Receipts from power sales are used for operation and maintenance of power transmission facilities.) -82 ------------- ------------- -----------315,929 12, 797 299,411 16,658 301,799 13,907 287, 731 3,526 -14,068 -10,381 289,762 13,297 297,671 6,706 7,909 -6,591 466 671 205 488 632 144 Alaska Power Administration General' and special funds: General investigations ________ 401 Operation and maintenance ___ 40I NOA Exp. ----------- NOA Exp. ----------- Total, Alaska Power Admin- NOA istration. Exp. --------------------- ----------- ----------- 404 410 6 367 416 49 870 1,081 Z11 855 1,048 193 Provides for coordinated planning of hydroelectric projects. Covers continued operation and maintenance of the Eklutna project and initial maintenance of the Snettisham project. Bonneville Power Administration Conatruction ________________ 401 NOA Exp. 108,761 110,497 116,500 6,003 105,696 115,173 118,321 3,148 NOA Exp. 16,958 18,498 20,600 2,102 16,630 18,500 20,600 2, JOO Total, Bonneville Power Ad- NOA ministration. Exp. 125,719 128,995 137,100 8,105 122,326 133,673 138,921 5,248 Operation and maintenance ••. 401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Continues construction of extra-high-voltage transm1ss1on facilities for the Pacific Northwest and of the Pacific Northwest-Southwest power interties. Increase will provide for the operation and maintenance of transmission facilities added to the power system. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code II 1%7 enacted I 1968 1969 csti mate csti mate Explanation 1ncrease or I 1 decrease ( - ) DEPARTMENT OF THE INTERIOR-Continued Federal Funds-Continued WATER AND POWER DEVELOPMENTContinued Southeastern Power Administration General and apecial funda-Continucd Operation and maintenance ___ 401 NOA Exp. 1,000 150 1,000 150 1,000 850 536 850 3,950 4,989 5,300 311 3,406 4,187 5,221 1,034 Provides for continuation and analysis of a growing power marketing program. Southwestern Power Administration Construction ________________ 401 Operation and maintenance ___ 401 NOA Exp. NOA Exp. z, 107 2,066 Z,Z66 Z,4Z3 157 2,267 2,417 150 3,ZOO ------------ Provides for energy purchases and rentals of transmission lines. 3,200 ------------ 3,700 3,ZOO 401 Exp. 2,644 3,200 Total, Southwestern Power NOA Exp. Administration. 9, 757 10,455 10, 9Z3 468 8, 116 9,654 10,838 1,184 45Z,405 lZ, 797 44Z, 969 13,907 437,835 3, 5Z6 -5, 134 -10,381 430,389 16,658 434,794 13,297 449,478 6,706 14,684 -6,591 Continuing fund (special fund) NOA Total, water and power de- NOA LA velopment. Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ·Provides for planning and construction of additional transmission lines, substation capacity, and related facilities. Increase will provide for the operation and maintenance of transmission facilities added to the power system. WATER POLLUTION CONTROL Office of Saline Water Saline water converaion ____ _40l NOA Exp. Prototype desalting plant_ ___ -401 NOA Exp. Construction, operation, maintenance. and Exp. Total, Office of Saline Water_ NOA Exp. 29,820 15,160 ----------- ----------1,660 29,820 16,820 19,800 23,881 A2,000 A1,750 FF 27,358 26,840 7,558 2,959 Increase will sustain program growth in high-priority deaalting research and development activities. 3,000 3,000 A250 1,000 1,500 Increase provides for scheduled financial participation in a large non-Federal electric power generating and desalting plant in southern California funded initially in supplemental. -453 (Facilities financed by this account are being completed.) 453 ------------21,800 26,084 30,358 30,090 } 8,558 4,006 Federal Water Pollution Control Administration Buildings and facilities ______ -401 NOA Reappropriation_ _____________ NOA Exp. 4,624 1,656 1,960 Water supply and water pollution NOA control__ ________________ -401 Exp. Construction grants for waste NOA treatment worb ___________ 401 Exp. }------------ ------------- ------------ (Carryover balances will provide for planning 3 water pollution control laboratories.) 3,000 2,500 -500 55,083 46,799 92,582 66,000 101,435 108,000 8,853 42,000 Increase includes accelerating research and development activities and increasing comprehensive river basin planning grants. 173,000 84,476 203,000 118,933 225,000 137,000 22,000 18,067 Provides increase of $22 million for grants for waste treatment plants. Exp. -3,044 2,500 500 -2,000 Total, Federal Water Pollu- NOA tion Control Administra- Exp. tion. 234,362 130,190 295,582 190,433 326,435 248,000 30,853 57,567 Total, water pollution control NOA Exp. 264,182 147,010 317,382 216,517 356,793 278,090 39,411 61,573 lntrasovernmental fund•: Advances and reimbunementa-401 A Proposed for 1eparate tranamittal under existing legislation, other than pay supplemental. PP Include■ $23,876 thouaand to ear ry out authorizina le1i1lation to be propooed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I (- ) Explanation I decrease DEPARTMENT OF THE INTERIOR-Continued --- ---·-----·-···-- --- Federal Funds-Continued SECRET ARIAL OFFICES Office of the Solicitor General and special funds: Salaries and expenses ________ 409 NOA 4,980 Exp. 4,872 5,098 DJ44 5,237 Salaries and expenses ________ 409 NOA 6,507 Exp. 5,530 288 5,590 353 7,042 8,530 1,256 6,175 7,400 8,520 1,120 Working capital fund ________ 409 Exp. -47 -4 Advances and reimbursements_ 409 Exp. -34 275 ------------- Total, Office of the Secretary_ NOA Exp. 6,507 6,093 } Increase is for additional patent and oil shale title clearance work. Office of the Secretary oz3z } lntragovernmental funda: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7,274 7,671 -4 ------------ 8,530 8,516 -275 1,256 845 Increase reflects central funding of the Natural Resources Library and transfer of funding responsibility for the Lower Colorado Land Use Office from the Bureau of Reclamation. ..... cc Ol cc Office of Water Resources Research General and special funda: Salaries and expenses ________ 40 I NOA Exp. 6,910 6,226 11,130 9,385 12,717 11,020 1,587 l',635 Total, secretarial offices_____ NOA Exp. 18,397 17,191 23,646 22,293 26,777 25,126 3,131 2,833 Increase provides for support of water resources research and for a larger information center program. VIRGIN ISLANDS CORPORATION Public enterprise funds: Operating fund ______________ 9IO Exp. -554 Subtotal, Federal funds______ NOA 1,715,694 13,101 1,491,032 24,431 LA Exp. NL -683 ------------- 1,823,808 18,715 1,675,903 21,463 1,865,246 9,695 1,869,328 11,966 683 41,438 -9,020 193,425 -9,497 (In 1968 the Corporation will liquidate its remaining activities.) Total Federal funds are distributed as follows: 1968 NOA Enacted _____ Repayments_ (A) ________ ( C) ________ (D) ________ 1,794,347 --------19,532 474 9,455 LA E%p, 19,538 1,648,824 -823 --------17,834 --------456 --------8,789 --------- NL 22,286 -823 1969 NOA Transmitted_ Repayments_ LA E%p, 1,865,246 I0,518 1,866,946 -823 --------( A) ________ --------1,698 ( C) ________ --------- --------18 (D) ________ --------- --------666 --------- --------- A Proposed for aeparate transmittal under existing legialation. other than pay supplemental. C Proposed for separate transmittal, wag_e-board supplemental. D Proposed for separate tran1mittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NL 12,789 -823 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (h thouaanda of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1ncreaae or I decrease ( - ) DEPARTMENT OF THE INTERIOR-Continued Trust Funds PUBLIC LAND MANAGEMENT Bureau of Land Management 585 665 80 Non-Federal contributions and advances are deposited for Iand management activities. ------------ 556 498 m Indian moneys, proceeds of labor, NOA agencies, schools, etc. (permanent) Exp. 409 3,094 2,874 3,600 3,135 Tribal funds (permanent) ______ 409 NOA Exp. 80,595 174,245 73,026 139,608 70,619 118,870 -2,407 -20,738 Total, Bureau of Indian Af. NOA 83,689 177,119 76,626 142,743 74,219 122,370 -2,407 -20,373 Bureau of Land Management truat NOA funds (permanent)___________ 401 Exp. m Bureau of Indian Affairs Exp. faira. • 3,600 ------------ Certain revenues from Indian reservations, agencies, and school 3,500 365 are used for support of schools and agency functions. Certain funds of Indian tribes are maintained in trust and ad ministered by the Secretary for their benefit. Bureau of Outdoor Recreation Contributed funds (permanent)_ 405 Exp. 10 ------------- ------------- ------------ (Contributions are used for specified purposes of the Bureau o Outdoor Recreation.) public agement. Total, land https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis man- NOA Exp. 84,245 177,627 77,211 143,458 74,884 123,085 -2,327 -20,373 MINERAL RESOURCES Geological Survey Advances, authorized services (per- NOA manent) ___________________ -409 Exp. 2,814 3,000 2,815 3,000 3,000 1,292 1,000 I, JOO 1,000 ------------ States, counties, municipalities, and private sources contribute I, JOO -----------funds for minerals and mining research. 3,000 ------------ States, counties, and municipalities contribute funds for topo- ------------ graphic mapping and water resources inv~stigations. Bureau of Mines Contributed funds (permanent)-403 NOA Exp. 1,538 Office of Coal Research Cooperation with States (perma- NOA nent) ______________________ 403 Exp. Total, mineral resources_____ NOA Exp. 97 ------------2 80 ------------- 14 ------------66 4,203 4,000 4,355 4,180 4,114 -66 762 772 -95 (The Secretary is authorized to accept financial assistance in connection with coal research and development.) 4,000 ------------ FISH AND WILDLIFE AND PARKS Bureau of Commercial Fisheries Contributed funds (permanent) -404 NOA Exp. 825 844 864 867 Inspection and grading of fishery NOA products (permanent) ______ -404 Exp. 619 750 800 669 744 802 58 1,444 1,594 1,562 -32 1,534 1,611 1,574 -37 133 172 76 81 159 85 Total. Bureau of Commercial NOA Fisheries. Exp. -82 so Decrease results from termination of some cooperative agreements with non-Federal agencies. Reflects an increase in this voluntary program. Bureau of Sport Fisheries and Wildlife Miscellaneous trust funds (perma- NOA nent) ______________________ -404 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis s -74 Contributions and receipts are used for work of the Bureau of Sport Fisheries and Wildlife. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued DEPARTMENT OF THE INTERIOR-Continued Trust Funds-Continued FISH AND WILDLIFE AND PARKS-Con. National Park Service National Park Service trust funds NOA (permanent)-- _____________ _405 Exp. 7,64Z 7, 135 8,Z45 9, 110 14, 743 14,925 6,498 5,815 Total, Fish and Wildlife and NOA Exp. parks. 9,Zl9 8,840 9,915 10,880 16,386 16,584 6,471 5,704 907 720 974 1.237 745 866 -ZZ9 -371 1,795 1,763 Z,150 1,880 575 900 -1,575 -980 wATER Donations are mainly used for specified purposes of the Nationa Park Service. AND POWER DEVELOPMENT Bureau of Reclamation Reclamation trust funds ( permanent) ______________________ 401 NOA Exp. Construction or investigations are financed by non-Federa entities. Bonneville Power Administration Construction of electric transmiaaion NOA lines and substations, contribu- Exp. tions, Bonneville Power project (permanent) ________________ 401 Customer contributions are used to construct service facilities. ... <0 C, <0 Total, water and power development. NOA Exp. Z,70Z 2,483 3,1%4 3,117 1,3ZO 1,766 -1,804 -1,351 WATER POLLUTION CONTROL Office of Saline Water Cooperation with foreign agencies (permanent): Appropriation __________________ NOA Contract authorization __________ NOA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 354 ------------11,670 }-----------6,019 -11,670 Funds provided by the Government of Saudi Arabia to financ e a desalting plant. Liquidation of contract authorization ___________________ 401 ----------- (5,400) 5,414 (10,500) 10,500 (5, 100) 5,086 Exp. 329 NOA Exp. 106, 742 105,920 96,590 -9,330 193,634 167,049 156,049 -11,000 lnterfund and intragovernmcntal transactions _________________ 400 NOA Exp. } -22, 122 Applicable receipts from the publie _________________________ 400 NOA Exp. J-l,/54,304 -/, 082, 148 -/, 110,798 -28,650 -3,099 -3,275 -3, 732 -457 Subtotal, trust funds ________ Adjustments 850 NOA Exp. Repayments deposited in reclama- LA tion fund (included m details NL above). Total, Department of the Interior. NOA LA Exp. NL } } (-81) ------------- ------------- ------------ (-823) (-823) ------------ 642,811 13,101 844,305 18,715 847,306 9,695 3,001 -9,020 505,041 24,431 757,529 21,463 910,847 11. 966 153,318 -9,497 Totals for the Department arc distributed as follows: /968 NOA Enacted _____ Repayments_ (A) _________ ( C) _________ ( D) _________ LA Exp. NL 814,844 19,538 730,450 22,28 6 -823 ---------82 3 --------19,532 --------17,834 ------474 --------456 ------9,455 --------8,789 ------/969 NOA LA Exp. NL 908,465 10,518 12,789 -823 ---------82 3 ( A) ________ 1,698 ------( C) ________ --------- --------18 --------------( D) ________ --------666 --------------- --------- Transmitted_ Repayments_ A C D Proposed for separate transmittal under es.iating legialation, other than pay supplemental. Proposed for separate transmittal, wage-board supplemental. Proposed for separate transmittal, civilian pay act 1upplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 847,306 --------- Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued ------" c,,:i C)1 Jo+"- Account and functional code I 1967 enacted I 1968 estimate 1969 estimate I decrease Increase or I (- ) Explanation DEPARTMENT OF JUSTICE -------- ---- Federal Funds >-3 ~ l:'J LEGAL ACTIVITIES AND GENERAL ADMINISTRATION td q 1::1 General and special funds: Salaries and expenses, general NOA administration ____________ 908 5,743 5,858 c4 D 174 } 6,903 867 5,733 5,969 6,709 740 Salaries and expenses, general NOA legal activities ____________ 908 Exp. 21,981 22,373 24,852 1,763 Salaries and expenses, Antitrust NOA Division _________________ 508 Exp. 7,495 D 24,126 1,436 7,620 n239 7,991 132 7,535 7,730 7,809 79 NOA 35,170 36,400 DJ, 442 38,546 704 Exp. 34,586 37,680 38,362 682 Fees and expenses of witnesses_ 908 NOA Exp. 2,800 3,100 3,200 100 2,820 3,100 3,100 ------------ Law enforcement assistance ___ 908 NOA Exp. 7,222 7,500 20,000 12,500 5,507 7,000 14,200 7,200 Salaries and expenses, U.S. attorneys and marshals _______ 908 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22,149 C'l l:'J >-3 >,j Exp. 7}6 22,690 Increase provides for improved management support and direct field supervision of certain parolees. 0 ::ti Increase reflects expanded emphasis on organized crime prosecutions, enforcement of the Civil Rights Act of 1964, and other civil rights litigation. Additional funds required for pay and other cost increases. >,j ..... if] Ci > t< ~ l:'J > ::0 Additional funds required for pay and other cost increases. .... '° '° O> 1969 requirements are expected to exceed 1968 because of increased trial activity. Increase reflects additional efforts to improve State and local law enforcement, corrections, and administration of justice. Salaries and expenses, Community NOA Relations Service ... _. _____ 908 Exp. 1,396 1,218 2,000 0 51 } 1. 911 Z,808 757 2,803 892 Increase is to strengthen conciliation services authorized by the Civil Rights Act of 1964. Regional offices will be established in 3 cities. lntragovernmental funds: Advances and reimbursements_908 Exp. 14 Total, legal activities and gen- NOA era! administration. Exp. 81,807 87,477 104,300 16,823 79,561 86,080 97,109 11,029 182,119 186,483 206,695 11,800 ------------- ------------- ------------ FEDERAL BUREAU OF INVESTIGATION General and special funds: Salaries and expenses ______ ._. 908 NOA C42 D8,370 Exp. } 185,166 195,468 205,615 10,147 78,732 79,907 D3,773 } 86,941 3,237 86,516 4,955 61, 752 -1,448 65,276 2,038 Increase will provide for additional civil rights investigators, expanded fingerprint and name check services, and expansion of the National Crime Information Center. IMMIGRATION AND NATURALIZATION SERVICE Salaries and expenses_ . ___ ... 908 NOA Number of persons inspected will increase by 7 million. c24 Exp. 80,230 81,561 Salaries and expenses, Bureau of NOA Prisons. __________________ 908 60, 707 61, 750 FEDERAL PRISON SYSTEM C 114 D 1,261 E 75 Exp. 59,547 63,238 C Proposed for separate tranamjttal. wage-board supplemental. D Proposed for separate transmittal, ci viii an pay act 1upplc mental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis l Provides for activating new institution at Morgantown, W, Va., treating additional prisoners under Narcotic Addict Rehabilitation Act, establishing more community treatment centers, expanding research and evaluation, providing advisory services to State and local correctional systems, and other medical and rehabilitation improvements. NOA will be reduced by transfer of $5,150 thousand from Buildings and facilities. Prison population will average 19,500 in 1968 and 19,000 in 1969. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted estimate estimate Increase or (- ) I decrease I Explanation DEPARTMENT OF JUSTICE-Continued .___.. ------ ··----· Federal Funds-Continued FEDERAL PRISON SYSTEM-Con. General and special funds-Continued Buildings and facilities _______ 908 Exp. 6,301 Support of U.S. prisoners _____ 908 NOA 4,930 4,500 5,149 A1,100 4,459 A300 -7,310 (2,214) -5,031 (2,714) Exp. 6,625 } 10,200 3,575 (Provides for various repair, rehabilitation, and improvement projects and replanning a psychiatric research institution at Butner, N.C., with funds from balances of prior appropriations.) 4,900 -700 Supplemen ta! in 1968 will provide for unanticipated increases in Federal prisoners housed in non-Federal institutions. 1969 estimate as sumes fewer prisoners in this category, partially offset by an increase in average cost per man-day from $4.61 to $4.90. 4,834 l A800 j 875 Intragovernmental funds: Federal Prison Industries, Inc.: Prison Industries funds _____ 908 Exp. Limitation on administrative and vocational training expenses. Total, Federal Prison Sys- NOA tern. Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -5,000 (3,607) 31 (Provides vocational training for 9,000 inmates and full-time em(793) ployment of 5,300 inmates. Increased emphasis will be placed on coor dinating industrial operations with inmate treatment programs.) 65,637 68,800 66,652 -2,148 63,687 69,591 76,110 6,519 CONTROL OF CRIME General and apecial funds: Control of crime _____________ 908 NOA Exp. Subtotal, Federal fur,ds. ____ NOA Exp. ----------- ----------408,295 408,645 B B 30,000 80,000 50,000 39,000 29,000 544,588 504,350 61,650 B 8 JO,OOQ 464,876 442,700 79,712 Supplemental in 1968 provides for initial activity under proposed legislation to authorize assistance to State and local governments in planning and improving systems of criminal justice. I%9 estimate provides for full-year operation. Total Federal funds are distributed as follows: 1968 NOA Enacted _____ Transmitted_ (A) ________ ( B ) ________ (C) ________ (D ) ________ ( E ) ________ =-- Trust Funds Limitation on general administrative expenses, alien property activities. (80) Alien property fund, World War II (trust revolving fund) •. ______ I 51 Exp. International Claims Settlement Act, title II fund (trust revolving fund) Exp. I. 815 = (48) } (l06) 4,057 675 ------------- (136) Proposed Proposed Proposed D Proposed E Proposed B C for for for for for separate separate separate separate separate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis transmittal transmittal transmittal. transmittal, transmittal. --------1, IO0 30,000 184 16,026 75 NOA 417,315 --------464,588 --------300 --------l0,000 80,000 165 --------14,849 --------71 Exp. 463,350 800 39,000 19 I, 177 4 (-18) Seized property of enemy nations of World War II or their nationals is being liquidated and used for payment of claims and settlements. The increase in 1968 is for expenses resulting from recent court decisions. 53,006 48,949 ------------- ------------ 151 A 417,491 /969 Exp. under existing legislation, other than pay supplemental. under proposed legislation. wage-board supplemental. civilian pay act supplemental. military pay act supplemental. (Property in the United States of the governments and nationals of Germany and Japan seized during World War II is being liquidated and used for payment of claims and settlements.) (Property in the United States of the governments and nationals of Bulgaria, Hungary, and Rumania seized during World War II have been liquidated and used for payment of claims and settlements.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted csti mate estimate 1 Explanation 1ncrease or I decrease ( - ) DEPARTMENT OF JUSTICE-Continued ------~ --- I Trust Funds-Continued Commissary funds, Federal prisons Exp. (trust revolving fund) _______ 908 Subtotal, trust funds_____ Exp. -39 I- ------------ :--1 2. 451 I 4,057 Applicable receipts from the public NOA 900 Exp. -2,5571 -2,565 Total, Department of Justice NOA Exp. 4os. 738 I 408,539 I 46z,m - - - - - -- - - - - - ------------ 53.006 I (Pr ofits from sales of sundries in prison commissaries are used for t he benefit of prison inmates.) 48,949 Adjustments 444,192 -2,565 -----------1 54Z,OZ3 79,712 554,791 110,599 /969 Exp. NOA 414,926 418,807 --------Enacted ____ _ T ransmitted_ --------- --------462,023 _______ _ A) ( 1,100 300 --------B ) _______ _ ( 30,000 10,000 80,000 ( C ) _______ _ 184 165 _____ ,.._ ___ D ) _______ _ ( 16,026 14,849 --------( E ) _______ _ 75 71 --------- I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis /968 NOA I ----------------------- Totals for Department are distributed as follows: - ---·· Exp. 513,791 800 39,000 19 1,177 4 DEPARTMENT OF LABOR ----- - - - - - - Federal Funds MANPOWER ADMINISTRATION General and special fund ■ : Manpower development and train- NOA ing activities_______ ______ 652 Exp. Salaries and expenses, Office of Manpower Administrator __ 652 385,497 413,096 444,000 430,000 30,962 NOA Exp. 390,004 274,829 I 29,043 29,422 4,600 30,696 D-428 34,572 8 35,000 2,300 B Salaries and expenses, Bureau of NOA Apprenticeship and Training 652 Exp. 8,256 7,914 Unemployment compensation for NOA Federal employees and ex-servicemen ___________________ 652 Exp. 76,467 79,006 } } 27,599 -14,000 Increase is for on-the-job training for the disadvantaged, expansion of short-term employability training, added support of State and local manpower program planning, and area manpower surveys. 3,754 Provides for additional personnel to plan, coordinate, and evaluate an expanded Federal manpower elfort and an expansion of research on manpower problems. Proposed legislation is to continue experimental labor mobility and placement assistance programs. 2,728 9,262 861 7,900 8,900 1,000 65,000 AZS,800 92,200 -1,600 62,584 A28,800 92,200 816 8,259 0 142 } Trade adjustment activities __ 652 NOA 1,300 } 11,300 1.300 l 9,300 B10,000 Exp. -160 ------------8 A B C Proposed for separate transmittal under exiating legislation. other than pay 1upplemental. Proposed for separate transmittal under propoaed legislation. Proposed for aeparate tranamittal. wage-board aupplemental. D Proposed for separate transmittal. civilian pay act 1upplemental. E 8,000 [ Proposed for separate transmittal. military pay act aupplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Provides additional personnel for expansion of on-the-job training activities. Higher weekly benefits are more than olfset by transfer of financing Auto Products Trade Act and Trade Expansion Act costs to Trade adjustment activities. For 1967 and 1968, these costs were financed in the preceding account. Increase reffects proposed revision in adjustment assistance provisions of the Trade Expansion Act. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued ~ 0:, 0 Account and functional code 1967 1968 1969 enacted estimate estimate 1 Explanation 1ncrease or I decrease ( -) DEPARTMENT OF LABOR-Continued Federal Funds-Continued MANPOWER ADMINISTRATION-Con. General and apecial funda-Continued Salaries and expenses, Bureau of NOA 2,726 Employment Security ____ 652 Exp. Limitation on salaries and expenses, Unemployment trust fund. Miscellaneous expired accounts Exp. 652 2,275 (18,167) -728 2,630 Farm labor supply revolving fund Exp. 652 lntracovernmental funds: Advances and reimbursements, Exp. Manpower Administration __ 652 Total, Manpower Administra- NOA tion. Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3,026 3,077 (20,947) 99 ------------- Public enter,:-i•e funda: Revolving nd for advances to NOA employment security adminis- Exp. tration account, Unemployment trust fund ________________ 652 } n42 4,050 (17,990)} A (262) D (476) -----------------------3,545 -3,900 354 Increase supports additional personnel to expand manpower programs. -973 (2,219) Increase reffects greater technical assistance in administration to State employment security agencies. -99 43,000 43,000 -4,000 -IOO Increase will be used to finance Iarger temporary advances to the Unemployment trust fund. 42 ------------- ------------- ------------ (Liquidation of the fund was completed in 1967.) - <0 C> <0 -5, 117 508,415 383,560 ------------- 520,638 578, 105 ------------- -----------605,906 85,268 576,777 -1,328 LABOR-MANAGEMENT RELATIONS General and a_Pecial fund ■ : Salaries and expenses, Labor- NOA Management Services Administration. __________ - - ______ 652 Exp. 8,578 8,532 8,264 n25 8,400 9,187 10,738 9,017 D26 10,718 } 9,063 506 8,900 500 Increase reftects expanded veterans reemployment activity. WAGE AND LABOR STANDARDS Salaries and expenses, Wage and NOA Labor StandaTds Administration ______________________ 652 Exp. 12,177 B -3,475 B 12,313 -3,475 } } -2,062 -1,880 Provides for the administrative costs of Bureau of Labor Standards, Bureau of Employees' Compensation, and Women's Bureau. Increased research, planning and evaluation of wage and labor standards programs, and safety enforcement activities will be more than offset by income from new legislation proposing user charges. I ntragovernmental funda: Advances and reimbursements_652 Exp. General and special -159 l02 ------------- fund ■ : -102 Claim~ and expenses. Bureau of NOA Employees' Compensation __ 906 Exp. 56,571 56,061 52,691 -3,370 56,516 56,061 52,691 -3,370 Salaries and expenses, Wage and Hour Division ____________ 652 22,716 24,134 26,211 2,004 Exp. 22,092 n73 25,000 26,000 1,000 Total, WageandLaborStand- NOA ards. Exp. 88,474 91,032 87,604 -3,428 87,467 91,881 87,529 -4,352 Salaries and expenses ________ 652 NOA 20,588 20,931 0 54 22,669 1,684 Exp. 20,740 21,200 22,668 1,468 reimbursements Exp. 652 -321 NOA } Decrease reftects greater reimbursements by Federal agencies, partially offset by higher benefit costs. The 1966 amendments to the Fair· Labor Standards Act provide for coverage of an additional I00,000 establishments for the first time in 1969. BUREAU OF LABOR STATISTICS } lntragovernmental fund ■ : Advances and Total, Bureau Statistics. of Labor NOA Exp. 251 ------------- -251 20,588 20,985 22,669 1,684 20,420 21,451 22,668 1,217 A Proposed for 1eparate transmittal under exiating lesialation, other than pay supplemental. Proposed for separate transmittal under proposed legi■lation. Propo1ed for aeparate tranamittal. civilian pay act aupplemental. B D https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase is for improved statistics and statistical research on prices, wages, and labor-management relations. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 1968 1969 enacted estimate estimate 1 Explanation 1ncrease or I decreaae ( - ) DEPARTMENT OF LABOR-Continued Federal Funds-Continued BUREAU OF INTERNATIONAL LABOR AFFAIRS General and special fund ■ : Salaries and expenses ________ 652 NOA Exp. I, 250 I, 154 Special foreign currency program NOA 652 Exp. 75 75 32 100 Advances and reimbursements_652 Exp 150 -1 Total, Bureau of Interna- NOA tional Labor Affairs. Exp. 1,325 1,336 1,423 I, 770 1,399 1,760 347 361 5,741 } DJS 5,740 (144) 6,226 467 lntragovernmental 1,348 1,300 1,410 1,407 107 360 353 285 253 fund ■ : ------------- 62 Program will continue at about the 1968 level. Additional excess foreign currency will be used for research and training in international labor and manpower areas, and fo r translation of books and periodicals. -I OFFICE OF THE SOLICITOR General and special funds: Salaries and expenses ________ 652 NOA Exp. Limitation payable from Unemployment trust fund. 5,587 5,490 (144) 6,040 300 (144) ------------ Increase needed for additional legal activities related to the Fair Labor Standards Act. OFFICE OF THE SECRETARY Salaries and expenses ________ 652 NOA Limitation payable from Unemployment trust fund. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. 3,680 4,385 } n45 5,128 698 3,845 (140) 4,472 5,066 594 (538) (538) ------------ Increase largdy reflects the costs of improving financial management. .... <0 0, <0 Federal contract compliance and NOA 1,040 I, 103 n3 civil rights program ______ 652 Exp. 951 1,136 Limitation payable from Unem----------- ------------ployment trust fund. Preventing age discrimination in NOA employment_ _____________ 652 Exp. Salaries and expenses, activities re- Exp. lating to admission and employment in agriculture of nonimmigrant aliens _______________ 652 } 1,428 (762) ----------- ----------------------- ------------53 1,456 350 Increase will provide added enforcement of nondiscrimination provisions in the grant programs and will strengthen coordina292 tion of Government-wide compliance with nondiscrimination (762) clauses in Government contracts which include a new ban on sex discrimination. 1,000 1,000 850 850 Amount reflects estimated costs of administering the Age Discrimination in Employment Act of 1967. -2 (Liquidation of this fund will be completed in 1968.) 2 ------------- lntragovernmental funds: Working capital fund _________ 652 Exp. 200 ------------- ------------- ------------ Advances and reimbursements_652 Exp. -37 ------------- ------------- ------------ Total, Office of the Secretary_ NOA Exp. 4,720 5,536 7,584 2,048 5,012 5,610 7,344 1,734 NOA 327 337 700 355 Exp. 328 ng 320 650 330 NOA Exp. 638,014 654,275 741,522 87,247 511,877 712,906 711,668 -1,238 (Provides centralized administrative services.) OTHER General and special funda: President's Committee on Consumer Interests ____________ 652 Subtotal, Federal funds_____ } Increase will strengthen coordination of Government consumer activities. Total Federal funds are distributed as follows: /968 Enacted _____ Transmitted_ (A) _________ (B) -------(D) -_________ A Proposed for 1eparate tranamittal under existing legislation. other than pay aupplemental. B Proposed for eeparate transmittal under proposed legialation. D Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA 625,467 /969 Exp. NOA ----------------- --------- 730,397 28,800 28,800 --------II, 125 --------- --------8 7 --------- Exp. 684,099 704,842 6,825 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted estimate estimate I Increase or I I decrease ( - ) Explanation DEPARTMENT OF LABOR-Continued ----- -------------- -- ----- - - - - - - - - - - - - c - - - - - Trust Funds MANPOWER ADMINISTRATION (524,000) Limitation on grants to States for unemployment compensation and employment service administration, Unemployment trust fund. Unemployment trust (permanent). fund 652 654 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (44,057) Increase primarily covers mandatory salary increases for State employees; and costs of implementing management information and cost accounting systems, and improving automatic data processing systems of the employment security program. ! NOA NOA LA .652 Exp. 654 Exp. 654 NL (Withdrawals by States) __ (616,573) 1 Receipts appropriated: (Deposits by States)_ (Federal unemployment taxes) (Railroad unemployment insurance taxes) . (Railroad unemployment insurance other) . (Interest on investments) ____ _ (State repayments of advances for temporary unemployment compensation). Expenditures_____ (556,932) } (15,503) D(81) A 579,089 3,380,277 114,000 615,000 3,503,131 652,000 3,556,850 -114, 000 37,000 53,719 -114,000 (2, 916, 933) (579,345) (136,565); (Z, 899, 184) (615,000) (135,470) (2, 800, 000) (652,000) (133, 125) (-99, 184) (37,000) (-2,345) (37,875) (-155) (471,850) (41,403) (38,349) I (383, m) I (18,452) 564. 569 I I (38. 030) I _ (430,447) 645,308 583,697 } 15,765 2,556,942 2, 563, 690 45,846 A 2. 189, 356 I 114,000 1------------001, 191)1 (2,385,128) -114,000 (2,379,406) -6, 748 -114, 000 (-5, 722) The fund combines the financial activities of the Federal-State and railroad unemployment systems. States and the Railroad Retirement Board draw upon the fund to pay weekly benefits to unemployed eligibles, in addition to sickness benefits paid by the Railroad Retirement Board through this fund. Payroll taxes of employers are the principal source of receipts, which also include repayments of advances to States for temporary programs which extended the duration of unemployment benefits. The amounts shown for these repayments include direct payments by States to the U.S. Treasury. Excess receipts of $10,853 thousand for repayment of Federal advances were returned to the States in 1967. The increase in Federal tax collections and interest on investments is partially offset by the decline in deposits by States. The number of benefit payments made during 1967 (in thousands) was 48,809; the estimate for 1968 and 1969 is 50,692. The average weekly benefit amount during 1967 was $41.05; the estimate for 1968 is $41.70 and 1969 is $43. (70,985) (Railroad unemployment benefits). (Administrative expenses) •• __ _ (564,021) (70,300) (582,759) 765) (6,769) (7,599) (3,819) (99,525) (-300) (45,276) Increase in administrative costs covers an additional.$612 in the average wage payments to State personnel and added unem(9,600) (10,844) (1,244) ployment insurance administrative costs of $3.4 million, ------------- ------------- ------------ reflecting the growth in covered employment and changes in State laws. During 1969, the Federal-State Employment Service will implement improvements in the management and (4,100) (4,200) (100) operation of the program. (95,500) (94,000) (-1, 500) A (IS, (Reimbursement of expenses) •. (Trust fund repayment of advances for temporary unemployment). (Interest expenses). _________ _ (Railroad unemployment insurance other). (Purchase of non-Federal securities). (70,000) (114,016) ------------- } (643,800) (-114,000) (-114,000) WAGE AND LABOR STANDARDS Bureau of Employees' Compensa- NOA sation trust funds (permanent) Exp. 906 38 Z4 139 128 Advances and reimbursements ___ 906 Exp. -13 zz 46 -z -82 48 ------------- -48 7 -13 4,Z08,87Z -114,000 90,717 -114,000 3,202,303 -114,000 38,955 -114,000 Receipts are from employers for the deaths of employees without eligible survivors, and from fines and penalties. Payments include certain permanent disability cases and rehabilitation maintenance benefits. BUREAU OF LABOR STATISTICS Special statistical work. _______ .652 Exp. Subtotal, trust funds_ _______ NOA LA Exp. NL 49 20 3,959,404 4,118,155 114,000 ------------- 2,754,100 3,163,348 114,000 ------------- (Funds are advanced from sources outside the Federal Government to finance special statistical studies.) Total trust funds are distributed as follows: /968 Enacted ____ (A) .... - .. NOA 4,118,155 Exp. 3,147,583 15,765 --------1969 NOA Transmitted 4,208,872 A Proposed for separate transmittal under e:ir.iating legialation. other than pay aupplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LA -114,000 Exp. NL 3,202,303 -114,000 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 1968 1969 enacted estimate estimate 1 Explanation 1ncreaoe or I decrease ( - ) DEPARTMENT OF LABOR-Continued .. -~--~ -- Adjustments lnterfund and intragovernmental NOA transactions _____ . __________ 650 Exp. } -7,599 Applicable receipts from the public NOA 650 Exp. } -11,548 -122 -122 -- - - - - - - - - - - -14 -14 -14 ------------ 850 NOA Exp. Total. Department of Labor_ NOA LA Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } ------------- ------------- ------------ 4,578,Z57 4,77Z,Z94 114,000 ------------3,246,816 3,876,118 114,000 ------------- 4,950,ZSS -114,000 3,913,835 -114,000 177,964 -114,000 37,717 -114,000 Totals for the Department are distributed as follows: /968 NOA Exp. Enacted ____ (A) _______ 4,743,486 28,800 ( D) _______ 8 3,831,546 44,565 7 1969 NOA LA Exp. NL Transmitted 4,939,133 -114,000 3,907,009 -114,000 ( B) _______ II, 125 6,825 ( D) _______ --------- --------- --------- --------- 1 --------- POST OFFICE DEPARTMENT ·-·-- Federal Funds Public enterpriae fund •= Contribution to the postal fund NOA (indefinite) _______ ________ 505 1,214,560 Exp. 1. 141, 185 Authorizations and limitations on use of postal fund : Administration and regional operation. Research, development, engineering. and Operations ________ _ ---------- Transportation ____ _ ---------- 961,628 A22,327 D190,082 1,066,536 A20,867 (95,563) (16, 135) (5,043,594) (640, 700)1 } 919,886 -254, 151 765,405 A1,460 } -320,538 (103,510)} D(4,011) (123. 802) (23,088)} D(210) (36,386) (16,281) (Provides for additional positions for departmental and regiona headquarters.) (13,088) (Provides for additional positions in the Bureau of Research and Engineering and an increase in contract research.) (5,306,851) } (5, 783, 989) D (185,434) (291,704) (Increase is for growth in mail volume (3.8%), for improved (713,500) (45,979) (Increase is attributable to growth in mail volume and service (650,000) } A(17,521) service, and for new and expanded training programs.) I A B D Proposed for separate transmittal under existing legislation. other than pay supplemental. Proposed for separate transmittal under proposed legialation. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Supplemental in 1968 is to cover costs of implementation of the postal rate increase and for additional workload in transportation generated by the increased mail volume. Estimated obligations of $7,298 million less estimated revenues and reimbursements of $6.378 million (including $959 million attributable to the postal rate increase), leaves $920 million to be contributed. This is an increase of $482 million in obligations ($312 million for mail volume, $124 million for improved facilities and equipment, $18 million for new training programs, and $28 million to strengthen management and improve the level of service). After deducting for public services, the deficit is estimated to be $78 million, compared to $449 million in 1968 and $590 million in 1967. The reduction in the deficit for 1969 is attributable to the additional revenue to be derived from the postal rate increase. improvement, partially offset by savings from more eflicien t use of transportation.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted [ 1968 1969 estimate estimate 1 Explanation 1ncrease or I decrease ( - ) POST OFFICE DEPARTMENT-Continued Federal Funds-Continued Public enterprise fund■-Continued Authorizations and limitations on use of postal fund-Continued Building occupancy ___________ (165,078) Supplies and services __________ (78,192) (185,889) (89,350)} (4,806) D(427) (216,000) (30,111) ( Increase is for more and better space.) (110,781) (16,198) ( Increase is for additional supplies required because of mail volume growth.) A Plant and equipment_ ________ (138,000) (195,030) (225,000) (29,970) (Increase is to renovate facilities and to purchase carrier and bulk transport vehicles.) Postal public buildings ________ ----------- (50,000) (88,252) (38,252) (Increase will permit further progress in the program, initiated in 1968, under which the Department constructs its special purpose buildings directly.) Total authorizations out of postal fund. (6. 177,262) (6,603,718) } (7,297,710) A (22,327) D(190,082) (481,583) .... C0 O> Total. Post Office Department NOA Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,214,560 I, 141.185 1,174,037 1,087,403 919,886 766,865 -254,151 -320,538 C0 Totals for the Department are distributed as follows: /969 /968 NOA Erp. NOA Erp. 961,628 889,268 --------- -------919,886 752,591 --------- --------( A) ________ 1,460 22,327 20,867 --------( D) ________ 12,814 190,082 177,268 --------- Enacted_ . ___ Transmitted_ DEPARTMENT OF STATE ~ = t 8 f Federal Funds ADMINISTRATION OF FOREIGN AFFAIRS General and special funds: Salaries and expenses ________ 151 NOA 185,784 m,&o5 204,168 8,704 202,850 10,050 Major increases in 1969 are for anticipated price rises abroad, increased personnel compensation costs, and development of an information systems program. 184,573 Dl,859 192,800 NOA Exp. 993 972 990 Acquisition, operation, and main- NOA tenance of buildings abroad_ 151 Exp. 15,500 17,977 13,350 15,388 12,750 16,592 1,204 Acquisition, operation, and main- NOA tenance of buildings abroad Exp. (special foreign currency program) ____________________ 151 6,250 5,909 5,025 4,486 3,050 6,610 -1,975 2,124 Decrease results from use of prior year balances for 1969 program. Emergencies in the diplomatic and NOA consular service ___________ 151 Exp. 3,600 2,657 2,100 3,100 1,600 1,600 -500 -1.500 Provides for relief and repatriation loans to U.S. citizens abroad and for other emergencies. 700 465 700 465 Assistance to American-sponsored schools abroad to acquire and construct facilities. ~ Exp. Representation allowances ____ 151 993 Overseas schools program (special NOA ----------- ------------foreign currency program) __ 151 Exp. ----------- ------------Extension and remodeling, State Exp. Department Building ______ 151 Replacement of passenger motor Exp. vehicles sold abroad ______ 151 A D 993 ------------ Provides for special expenses in promoting U.S. interests abroad and participating in commemorative and ceremonial events. 990 ------------600 16 ______________________________________ (Activities were completed in 1967.) 119 82 35 -47 Proposed for separate transmittal under exiating legislation. other than pay supplemental. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decrease results from use of prior year balances for 1969 program. (Activities previously under this account are financed through reimbursements to Salaries and expenses starting in 1967.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted estimate estimate Increase or I (- ) Explanation I decrease DEPARTMENT OF STATE-Continued Federal Funds-Continued ADMINISTRATION OF FOREIGN AFFAIRS-Continued lntragovernmental funds: Working capital fund ________ 151 Ex p. Advances and reimbursements_ 151 Ex p. Total, administration of for- NOA Ex p. eign affairs. -682 -57 -25 32 (The fund finances publishing, supply, and other support services.) -64 ------------- ------------- -----------212,127 211,477 216,932 216,789 223,261 229, 117 6,329 12,328 Contributions to international NOA organizations _____________ 151 Exp. 100,826 IOI, 348 93,735 112,000 118,628 118,000 24,893 6,000 Increase reflects cost rises and expansion of programs of most international organizations. Missions to international orga- NOA nizations _________________ 151 Exp. 3,700 3,770 0_54 3,387 } 3,913 197 Provides representation, reporting, and liaiso n with international organizations and with delegations of other nations. 3,887 500 1,943 D-163 1,805 } 1,822 42 1,820 15 500 400 500 400 INTERNATIONAL ORGANIZATIONs AND CONFERENCES General and special fund ■ : International conferences and con- NO A tingencies ________________ 151 Exp. World Health Assembly. _____ 151 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3,836 1,943 I, 775 NOA ----------- Exp. ------------- ----------- ------------- Finances participation in international conferences and contributions to new or provisional international organizations. Will finance part of cost of this conference in Boston in July 1969. ... C0 Ol C0 Miscellaneous appropriations._ I 5 I NOA Exp. Total, international organiza- NOA tions and conferences. Exp. 1 3SO 1: 009 1 i---- -----328 107,819 I I07. 968 I 99,231 111.520 T--------1 124,S63 124. 1 II 1 6f 1· ----- -26f n I 1 (Remaining costs of Conference on Water for Peace and of international tariff negotiations will be liquidated in 1968 and 1969.) 25,632 6,652 INTERNATIONAL COMMISSIONS· International Boundary and Water Commission, United States and Mexico: Salaries and expenses _____ -401 NOA Exp. Operation and maintenance-401 NOA I 831 851 891 880 880 -11 1,979 } -50 1,929 2,110 181 2, 1IO 181 9,000 l A70Q [ I0,350 A20Q 5,806 -3,894 812 1,985 29 Provides for investigations to determine need for and feasibility of joint projects for solution of boundary problems. Increase reAects initiation of operations at Amistad Dam. 0 Construction ____________ -401 Exp. 1.982 NOA 5,747 Exp. 8,189 I ! Chamizal settlement_ _____ -401 NOA Exp. 4,200 16, I05 American sections, international NOA -401 commissions._______ Exp. 650 International fisheries commis- NOA sions _____________________ 404 Exp. 2,700 8,568 0 568 2,125 D 2,065 Miscellaneous appropriations_-404 Exp. l I0,000 r A5oo -50 I, 900 -2, 700 -6,668 650 } 629 -1 687 634 -53 2,075 60 2,067 6 -zo 2, 125 -110 2,061 250 l f 250 ,_____ !______ ,______ ,______ Total, international commis- NOA smns. Exp. 15,53811 29,721 17,825 24,936 11,500 18,341 II -6,325 -6,595 =====,:,,= = = = = = = = = = I A D Proposed for separate transmittal under existing legislation. other than pay supplemental. Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Supplemental in 1968 is to initiate design of Tijuana Flood Control project. Decrease in I969 results from lowered requirements to complete Amistad Dam. Project will be completed in 1969. Provides for maintenance of United States-Canadian boundary and studies of border matters. Increase is for salary adjustments, effective July 1968, consistent with October 1967 changes in Federal salaries. (Grant to the University of Washington for a laboratory and offices for International Pacific Halibut Commission.) Table 14. ANALYSIS OF BUDGET AlITHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 1968 1969 enacted estimate estimate I ncrea,e or (- ) I decrease I Explanation DEPARTMENT OF STATE-Continued Federal Funds-Contin ued EDUCATIONAL EXCHANG E General and special funds-Con tinued Mutual educational and culturaI NOA exchange activities _________ 153 Exp. 46,999 International educational exchang e Exp. activities ( s;>ecial foreign cur rency program) ___________ 153 2,432 . English language teaching pro. NOA gram in Poland (special foreign Exp. currency program) _________ 153 46,454 45,998 44,862 -261 44,649 44,462 -187 Prov ides for academic and nonacademic exchanges, services to pri vately sponsored foreign students, and aid to American sponsored schools abroad. 1,500 1,000 -500 (Act"1vities will be substantially completed in 1969.) 3,100 800 3,100 800 Will finance a multiyear program pursuant to a recent United 5,362 14Z 5,270 -530 Gran t to the University of Hawaii to support a center for advaneed Asian and Pacific studies with participants from the nited States and the Far East. -6 l D-875 l ----------- ----------------------- ------------- Center for Cultural and Technica1 NOA Interchange Between East and West__ __ ... _____ . ________ 153 Exp. 6,050 6,564 5,800 D-580 5,800 Miscellaneous appropriations __ l 53 Exp. 54 56 50 Educational exchange pcrmanen t NOA appropriations (indefinite, spe Exp. cial funds) ________________ 153 353 280 353 350 354 375 Total. educational exchange - NOA Exp. 53,402 55,783 50,696 52,355 53,678 51, 9 7 . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } St ates-Poland agreement. u (Gra nt to UNESCO for preservation of certain temples in Egypt and the Sudan.) 1 Paymcnts by Finland on World War I debts arc used for cduca25 tio nal exchanges with Finland. 2,982 -398 OTHER NOA 6,050 5,625 0_7 Exp. 7,307 7,111 Miscellaneous appropriations._ 152 Exp. 310 Migration and refugee assistance... _____ . ____________ J52 Payment to the Republic of Panama (permanent) __________ 151 NOA Exp. Total, other. ______________ NOA Exp. Subtotal, Federal funds_____ NOA Exp. } 5,485 -133 5,705 -1,406 178 ------------- 1,930 1,930 1,930 1,930 1,930 -178 ------------ 1,930 ------------ 7,980 7,548 7,415 9,548 9,219 7,635 -1,584 396,867 392,232 420, 717 28,485 414,496 420,819 431. 222 10,403 Increased costs of transporting Cuban refugees to the United States are offset by reductions in other refugee programs. (Rama Road in Nicaragua will be completed in 1968.) Annual payment is made under treaty for Panama Canal rights. The Panama Canal Company reimburses $430 thousand to the U.S. Treasury. -133 Total Federal funds are distributed as follows: /968 NOA Enacted _____ Transmitted_ (A)----- - - 391,532 /969 Exp. NOA 420,619 --------420,717 --------200 700 Exp. 430,722 500 Trust Funds ADMINISTRATION OF FOREIGN AFFAIRS Foreign Service retirement and dis- NOA ability fund (permanent) ___ 654 Receipts appropriated: (Employees' contribution) ____ _ (Employer's contribution) ____ . ( Interest on investment) _____ _ Expenditures: Exp. (Benefit payments) __________ _ ( Administrative expenses) ____ _ A D (11,192) (11,487) 5,348 4,178 1,665 5,467 4,335 1,685 (10,582) 9,996 586 (11,599) 11,019 580 (11,975) (488) A retirement and disability system for Foreign Service officers 5,712 4,573 1,690 and most Foreign Service staff officers and employees is maintained. Employing agencies match employee payments of 6½% of basic salaries. Approximately 1,814 annuitants will be receiving benefits at the end of 1969. F,md balances are invested in interest-bearing U.S. securities. 245 238 Proposed for separate transmittal under existing legislation. other than pay supplemental. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis s (12,593) (994) 12,013 994 580 ------------ Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 1968 1969 enacted estimate estimate 1 Explanation 1ncrease or I decrease ( -) DEPARTMENT OF STATE-Continued --- Trust Funds-Continued ADMINISTRATION OF FOREIGN AFFAIRS-Continued Miscellaneous permanent appro- NOA priations ___________________ 15 I Exp. 91 84 43 ------------84 ------------- Total. administration of NOA foreign affairs. Exp. 11,283 10,666 11,530 11,683 2 2 2 3 Educational exchange trust funds NOA (permanent) ________________ 152 Exp. 202 167 278 330 153 NOA Exp. 58 54 55 55 NOA Exp. 260 221 340 385 360 374 11,975 12,593 -43 -84 Gifts are used for various functions of the Department. 445 910 INTERNATIONAL ORGANIZATIONS AND CONFERENCES Gifts and bequests, National Com- NOA mission on Educational, Scientific, Exp. and Cultural Cooperation (permanent) ____________________ 151 2 ------------ Gifts are used by the National Commission. 3 ------------ EDUCATIONAL EXCHANGE Total, educational exchange__ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 62 312 319 48 34 -11 Other governments' funds are used for training of foreign nationa la or requested services. -14 These funds, from gifts, are for educational exchange, -----------20 -11 OTHER Indemnification funds, foreign gov- NOA ernments (permanent) ______ J5 I Exp. Subtotal. trust funds ________ --------------------- NOA Exp. 720 ------------- 720 ------------- 11,545 12,592 I0,889 12,791 12,337 12,970 -720 -720 Represents deposit of funds and payment of claims. -255 179 Adjustments lnterfund and intragovernmental NOA transactions ________________ I 50 Exp. } -430 -430 -430 ------------ Applicable receipts from the public NOA 050 Exp. 150 NOA Exp. 500 NOA Exp. 850 NOA Exp. } -245 } -4,873 } -293 } -169 -250 -4,266 -250 ------------4,273 -7 -295 -295 ------------ -161 -155 6 427,651 28,229 Total, Department of State_ NOA Exp. 402,402 419,375 399,422 428,208 438,789 IO, 581 Totals for the Department are distributed as follows: 1968 NOA Enacted ____ Transmitted (A) _______ A Proposed for separate transmittal under existing legislation, other than pay supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 398,722 /969 Erp. NOA Erp. 428,008 --------- ------427,651 438, 289 --------- --------700 500 200 --------- Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted 1969 estimate 1968 estimate Explanation 1ncrease or I 1 decrease ( - ) DEPARTMENT OF TRANSPORTATION Fede ral Funds 0 FFICE OF THE SECRET ARY Genera l and special funda: Salar ies and expenses _______ 506 NOA 4,452 Exp. 2,834 6,866 DlSO 8,100 Transportation research _____ 506 NOA Exp. 2,994 2,893 11, 33S 4,319 11,300 3,200 5,950 5,100 7,000 8,000 1,050 2,900 ----------- -407 -16 391 Exp. 7,446 5,727 12,966 12,793 18,33S 19,284 5,369 6,491 NOA 350,450 391, S60 18,243 Exp. 348,208 366,860 E 6, 4S7 341, 199 409,139 67,940 Increase permits operation of replacement vessels, aircraft, and shore establishments constructed under prior year appropria tions. Coast Guard reserve training programs will be funde d from this appropriation starting in 1969. Acqu isition, construction, and im- NOA provements _______________ 502 Exp. 104,SOS IOI, 028 107,014 100,000 107,000 135,200 -14 35,200 Includes funds for construction of 3 replacement vessels, I addi tional river tender, and acquisition of 9 replacement aircraft 44,750 44,701 48,000 43,900 } Provides for increased staffing and strengthening of departmenta management. Funds will be used to identify transportation policy problem and solutions, develop transportation data, and evaluate transportation needs of the Northeast Corridor area. lntrag overnmental funds: Work ing capital fund _________ 506 Exp. Total, Office of the Secretary_ NOA (Provides for printing services for the Department.) COAST GUARD Genera I and ■pecial fund ■ : Opera ting expenses __________ 502 Retir ed pay __ .. _. ___________ 502 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Ex. p } F 51,056 54,456 3,056 An average ~et increase of 645 retirees is expected. 10,556 , Research, development, test and NOA evaluation _______________ 502 Exp. 9,000 8,000 9,000 8,000 This activity will be separately financed, starting in 1969. Estimate is primarily for the national oceanographic data buoy system. 500 500 (Expenditures exceed receipts slightly in a $27.7 million program.) 850 -150 (Expenditures will decline in 1969 due to a reduction in unfilled customer orders in a $17.3 million program.) lntragovernmental funds: Coast Guard supply fund •.••. 502 Exp. 687 Coast Guard yard fund ..••.•• 502 Exp. 2,059 1.000 I ------:-----1 NOA Exp. 499,705 496,683 528,331 I 558,616 608,145 30,285 122,046 Operations ________ ·--- ______ 501 NOA 575,319 663,079 43,298 Exp. 566,298 605,228 } Dl4,553 612,212 660,000 47,788 Increased costs for operating newly commissioned airway facilities and handling increased air traffic will be offset partially by operational and management improvements. Facilities and equipment_ ____ 501 NOA Exp. 28,000 60,564 54,000 75,000 70,000 102,800 16,000 27,800 Major portion of the 1969 increase is to provide for automation of en route and terminal air traffic control activities. Research and development_ __ 501 NOA Exp. 28,500 36,241 27,000 33,500 28,000 29,000 1,000 -4,500 Operation and maintenance, Na- NOA tional Capital airports __ ••. 501 8,527 8,435 } 9,019 369 Exp. 7,908 122 8,677 8,952 275 Construction, National Capital NOA airports .. -···- ___ ··-·-· ._501 Exp. 2,450 160 4,600 1,000 3,160 840 -1,440 Total, Coast Guard·---···-- 486,099 FEDERAL AVIATION ADMINISTRATION 1=:==: General and special funda: c93 0 C D E F Proposed Proposed Proposed To carry for separate transmittal. wage .. board supplemental. for separate transmittal. civilian pay act supplemental. for separate transmittal, military pay act supplemental. out authorizing legislation to he proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Activity will be continued at about the 1968 level. Operation and maintenance of Washington National and Dulles International Airports will be continued at about the 1968 level. Appropriation is for improvement of international arrival facilities at Dulles International Airport. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code e~!c\~d I e,)?~:te e,);9~~te I Je:~~e.:~\~)1 Explanation ------------------'----------'------~-------------------------------- DEPARTMENT OF TRANSPORTATION-Continued Federal Funds-Contin ued FEDERAL AVIATION ADMINISTRATION-Contin ued General and special funda-Cont inued Grants-in-aid for airports _____ 50 I NOA Permanent_ ________________ _ NOA Exp. Civil supersonic aircraft develop. NOA ment_ ____________________ 50 I Exp. 66,000 ----------71,000 ------------- ------70,000- [ 4,000 64,147 58,000 280,000 142,375 223,000 80,625 145,334 100,000 351,000 251,000 -2 21 73,000 15,000 Grants are made to local communities for public airport development. Budget also proposes appropria tion of $65 million for 1970. Estimate is to continue Federal financial assistance in the construction of prototype supersonic trans port aircraft. Public enterprise funds: Aviation war risk insurance re- Exp. volving fund _____________ .50 I Total, Federal Aviation Ad. NOA ministration. Exp. 991,346 882,941 917,966 I 892,0JO FEDERAL HIGHWAY ADMINIST RATION 1,064,0981 I 1,227,912 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Unfunded contingent liability is estim ated at $27 billion.) 146,132 335,902 I 80,000 1,200 1,508 } D36 Contract authorization _______ _ NOA Liquidation of contract author . ization. Exp. -21 i General and special funds: Highway beautification: 503 Appropriation _______________ _ NOA - --- - - -- - - - - - B 85,000 ----------- ------------- 23,820 79,668 B 85,000 B(5(,000) 30,214 B5( 000 Proposed legislation would provide new contract authorization for 1968. Estimate in 1969 includes the salary increase. Legislation also will be proposed to provide 1970 authorization of (51,000) $85 million to be available for obligation in 1969. 272 1,546 T rafiic and highway safety ____ 503 NOA Exp. 10,000 Zl,034 2,076 20,000 State and community highway safety programs: 503 Contract authorization: Current __________________ NOA Permanent_ _______________ NOA Liquidation of contract authorization____________________ Exp. 167,000 Motor carrier safety _________ 503 FS0,000 100,000 (10,000) 774 (25,000) 26,187 (70,000) 70,000 (45,000) 43,813 Exp. 1,753 2,012 259 NOA 33,000 ----------(32,000) 28,947 14,000 B-33,000 33,000 (32,000) B(-32, 000) 34,115 B-34, 115 B ----------(12,400) B NOA Exp. 10, 105 ----------5,693 -16,000 16,000 8 (9,000) (-9,000) 10,424 -10,424 Increase supports expanded inspection activities. F33,000 }----------- Legislation has been proposed to finance this program, including unexpended balances of prior year authorizations, from the Highway trust fund beginning in 1968. ---~~~~~~~~- (33,000) }----------B(-33, 000) 35,000 }----------B-35,000 FJ6,000 1----------- ---~~~~:~~f (9,000) } B 8 Legislation has been proposed to finance this program, including unexpended balances of prior year authorizations, from the Highway trust fund beginning in 1968. (-9,000) 10,000 } -10,000 5,000 Z,000 -3,000 6,935 8,000 1,065 Proposed for separate transmittal under proposed legislation. Proposed for separate transmittal. civilian pay act supplemental. To carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decrease in NOA reflects large unobligated balances of prior year authorizations which will permit a program increase. 179 Exp. F -50,000 ----------- j Z,0IZ Public lands highways: 503 Contract authorization: Current_ __________________ NOA ll D Increase is primarily for expanded highway safety research and standards development. 1,780 n53 Permanent_ _______________ NOA Liquidation of contract authorization. Exp. Inter-American Highway _____ I 52 l 9,271 9,305 NOA Forest highways: 503 Contract authorization: Current_____________ ______ NOA Permanent_ _______________ Liquidation of contract authorization. 30,305 29,305 Financing of the Inter-American Highway will be completed in 1969. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I I 1967 enacted 1968 1969 estimate estimate I Increase or decrease ( - ) Cl,j I Explanation DEPARTMENT OF TRANSPORTATION-Continued Federal Funds-Continu ed FEDERAL HIGHWAY ADMIN ISTRATION-Continued G-eneral and special funda-Conti nued ----------- ----------- 1,000 Alaskan assistance ___________ 503 NOA ----------- 5,000 Repair and reconstruction of high- NOA ways _____________________ 503 Exp. - - -- - - - - - - -- - - - - -- - - - Miscellaneous accounts _______ 503 NOA Exp. 210 1.022 4,000 ------------ Estimate would complete funding of a border highway in El 4,000 Chamizal Memorial Highway_ 503 NOA Exp. 5,400 4,400 ------------- -5,000 15,098 - - ----- - - - - - 15,098 - - - - - -- - - - - - - -15,098 - - - - - - - - -- - - - -15,098 ------------97 ------------- ------------97 ------------ Paso, Tex. No new funds are requested. The Highway trust fund is repaid for funds used for emergenc y highway repair and reconstruction. lntragovernmental funds: Advances and reimbursements_503 Exp. 1 1 1 Total. Federal Highway Ad- NOA Exp. ministration. 304,210 238,201 174,825 -63,376 72,437 150,739 195,932 45. 193 680 1,032 352 650 1,032 382 3,820 356 3,820 525 16,200 4,450 23,125 6,290 FEDERAL RAILROAD ADMINISTR ATION General and ■peclal fund ■ : Salaries and expenses, Office of the NOA Administrator _____________ 503 Exp. ----------- Bureau of Railroad Safety ____ 503 NOA ---------- 3,414 D 50 ----------- 3,295 Exp. High-speed ground transportation NOA research and development __ 503 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ----------- 21,974 7,253 11,750 16,835 1 F Increase will strengthen executive direction for the Administratio n. Continues program of safety regulation and inspection. Includes cons!ruction and testing of new systems for high-speed transportation. 00 0 Railroad research __________ 503 NOA Exp. --- - - - - ------ --- 200 400 200 100 300 200 565 -125 -690 21,452 5,358 28,152 6,707 Public enterprise funds: Alaska Railroad revolving fund Exp. 2,339 NOA Exp. 21,974 16,094 9,592 21,445 503 Total, Federal Railroad Administration. Continues study of railroad safety problems. (Revenues of Railroad.) $15 million finance annual operation of the Alaska ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION St. Lawrence Seaway Development Corporation fund __ 502 Limitation on administrative expenses. NOA Exp. ----------- 95 (515) B 13,105 ------------- -13, 105 3,256 (514) } D (17) 8,570 (560) 5,314 (29) 4,706 604 4,662 731 Proposed legislation provides for major rehabilitation work required on the Eisenhower and Snell locks. NATIONAL TRANSPORTATION SAFETY BOARD Ceneral and special funds: Salaries and expenses ________ 506 Subtotal, Federal funds_____ NOA ---------- - 3,993 D109 Exp. ----------- 3. 931 NOA Exp. 1,824,682 1,730,765 1,842,032 111,267 1,467,476 1,570,273 2,092,657 522,384 } Increase is for expanded workload in accident investigation and determination of cause in aviation and surface transportation. Total Federal funds are distributed as follows: 1968 NOA Enacted _____ Transmitted_ ( B) ________ ( C) -------- ( D) ________ ( E) ________ Proposed Proposed Proposed Proposed FTo carry B C D E for for for for out separate transmittal under proposed legislation. separate transmittal, wage-board supplemental. separate transmittal. civilian pay act supplemental. separate transmittal, military pay act supplemental. authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1969 Exp. NOA Exp. 1,660,037 1,594,327 --------- --------- 1,806,032 2,085,519 36,000 49, I05 -44,539 6,000 93 88 s 15,073 14,298 775 6,457 6,099 358 Table 14. ANALYSIS OF BUDGET AUTHORITY AND·OUTLAYS BY AGENCY (in thousands of dollars)-Continued I Account and functional code 1967 enacted I 1968 estimate 1969 estimate 1 Explanation 1ncrease or I decrease ( - ) DEPARTMENT OF TRANSPORTATION-Continued Trust Funds FEDERAL HIGHWAY AD!VIINISTRATION Highway trust fund: 503 Limitation on general administrative expenses. Contract authorization: Existing legislation: CurrenL _________________ _ Permanent_ ______________ _ Proposed legislation: For est highways ___________ _ Public lands highways _____ _ Liquidation of contract authorization: Federal-aid highways ________ _ (57,782) NOA NOA 4,450,000 ----------------------4,850,000 NOA NOA B (3,968,400) Forest highways_. ______ . ____ . (Existing legislation) _______ . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (68,186) FI,000,000 3,650,000 i (6,798) -301,389 110,065 40,324 8 Public lands highways ____ • ___ . Receipts to liquidate contract authorization and finance current appropriations: (Excise taxes): (Proposed legislation) ______ _ (59,927)} D(l,461) (4,440,862) (3,770,872) } (4, ISS,000) A (400,000) B (36,115) B (33,000) B (11,424) B (9,000) (4,338,902) (4,522,000)} B (239,000) (-12,872) (-3,115) (-2,424) (422,098) Receipts of the fund liquidate portions of the contract authorization. Decrease in 1969 reflects most recent congressionally approved authorizations. Legislation will be proposed for new authorizations. Legislation has been proposed to finance forest and public lands highways, including balances of prior year authorizations from the Highway trust fund beginning in 1968. ( Interest on investments) : (Existing legislation) ______ _ (Proposed legislation) _____ - (Repayment from general fund) Exp. Improvement of the Pentagon road Exp. network. ___________________ 503 Other Federal Highway Administration trust funds: International trust funds (permanent): 152 Contract authorization________ NOA Appropriation________________ NOA Liquidation of contract authorization. Exp. Miscellaneous trust funds (permanent): 503 Appropriation________________ NOA Liquidation of contract authorization. Exp. Total, Federal Highway Ad- NOA ministration _____ • ___ .502 Exp. (25,000) (14,225) ----------- ------------(15,098) ·---------3,774,334 3,973,356 A400,000 B 44,539 70 78 5,591 - -- - - - - - -- - - 7,000 3Z4 (6,441) (5,440) 6,000 6,550 844 ----------433 500 (49) 505 (40,000) (4,000) B } (19,000) (-15,098) 4,158,000 } -15,873 ------------- B 45,000 -78 ------------- -------i;iiiiii-} ------------5,500 500 ------------500 4,456,759 3,980,409 5,007,889 4,225,456 4,70Z,500 4,209,000 43 75 15 16 8 22 -4,000 (Work completed in 1968.) Advances from other countries are used for cooperative work and technical assistance. (-5,440) -500 -----------(-49) -5 Advances from other Federal agencies, States, local governments, and nongovernment interests pay for requested special services. -305,389 -16,456 COAST GUARD Coast Guard general gift fund (per- NOA manent) ____________________ 502 Exp. A Proposed B Proposed Proposed FTo carry D for for for out -7 Funds are used to support Coast Guard training programs. separate tran1mittal under exiating legialation, other than pay aupplemental. separate tran1mittal under proposed legi.slation. separate transmittal. civilian pay act supplemental. authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I ( -) Idecrease Explanation DEPARTMENT OF TRANSPORTATION-Continued Trust Funds-Continued NATIONAL TRANSPORTATION SAFETY BOARD Donations (permanent)_-··. ___ 506 Subtotal, trust funds_·-·---- NOA NOA Exp. ----------- 28 - - -- - --- - - - - - -28 4,456,802 5,007,932 4,702,508 -305,424 3,980,484 4,225,472 4,209,022 -16,450 Funds are used to support aviation accident investigation. Total trust funds are distributed as follows: 1968 NOA 1969 E11p. NOA - -- - - - - - - E11p. Enacted._ .. 4,857,543 3,780,933 -------Transmitted --------4,653,508 4, 164,02 2 (A) ....... (B)_ .. ___ . ===== Adjustments lnterfund and intragovernmental NOA transactions .....••••••••.••• 500 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ---------- -15,098 ------------- 15,098 --------150,389 400,000 44,539 ---------------49,000 45, 000 Applicable receipts from the pub- NOA lie ________________________ 150 Exp. -6, 756 -12, 440 -3, 000 9,440 500 NOA -13,224 -15,247 -17, 002 -1,755 6,261,504 6,695,912 6,524,538 -I71,374 5,427,980 5,752,960 6,281,677 528,717 Exp. Total, Department of Trans- NOA portation. Exp. f Totals for the Department are distributed as follows: 1968 Enacted. ___ Transmitted ( A) _______ ( B)_ ______ ( C) _______ ( D) _______ ( E) - - - - - - - 1969 NOA Exp. 6,474,795 5,332,475 --------- --------400,000 --------- 199,494 93 15,073 6,457 --------- 88 14,298 6,099 NOA --------- 6,439,538 --------- Exp. 6,229,539 85,000 51,000 ----------------- 5 775 --------- 358 TREASURY DEPARTMENT Federal Funds OFFICE OF THE SECRETARY General and apecial fundaz Salaries and expenses. _______ 904 NOA Exp. Miscellaneous permanent appro- NOA priations (indefinite, special Exp. funds) ___________________ 904 A B C D 7,0IZ 6,988 7,780 792 6,800 6,908 7,767 859 Increase provides for funding to assure equal employment opportunities, to strengthen administrative support, and for research in tax, debt, and financial management. 16 16 18 16 22 19 Z - 3 Funds are appropriated from a receipt account for administrative expenses of paying awards under the War Claims Act, Proposed for separate transmittal under existing legi1lation, other than pay supplemental. Proposed for separate transmittal under proposed legi1lation. Proposed for separate transmittal, wage-board supplemental. Proposed for separate tranamittal. civilian pay act supplemental. E Proposed for separate transmittal, military pay act aupplemental, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousaqds of dollars)--Continued 1967 enacted Account and functional code 1968 1969 e!timate estimate Explanation 1 ncrease or I (- ) 1 decrease TREASURY DEPARTMENT-Continued -- - - - - - - - - - - - - - Federal Fund.'i-Continued OFFICE OF THE SECRETARY-Con. Public enterpriae funda: 1 Liquidation of Federal Farm Exp. Mortgage Corporation _____ 904 1 -2, 383 -2,383 -3 -10 -7 -46 -45 -47 -2 7,028 -396 7,004 -48 7, 798 -57 794 -9 6,816 -396 6,931 -48 5,404 -57 -1,527 -9 Liquidation of foreign military Exp. sales fund, executive _______ 057 ----------- ------------- Liquidation of Reconstruction Fi- LA nance Corporation: Repayments NL deposited in general fund ___ 904 } -350 Civil defense loans: Repayments LA deposited in general fund ___ 059 NL } Total, Office of the Secretary_ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA LA Exp. NL 1 ------------ (Collections from Federal land ba nks were completed in 1966.) I (The Foreign Assistance Act of 1967 terminated the Foreign military sales fund, effective June 30, 1968, and established this account to receive future repayments and to discharge obligations of the closed account. ) BUREAU OF ACCOUNTS General and apecial funds: Salaries and expenses ________ 904 NOA 32,988 Exp. 33,625 Claims, judgments and relief acts: Current, definite __________ 910 NOA Exp. 35,046 39,126 Permanent definite ________ 910 NOA Exp. 6 6 Permanent, indefinite ______ 910 NOA Exp. Interest on uninvested funds NOA (permanent, indefinite) __ 853 Exp. Payment of Government losses in NOA shipment__ ________________ 904 Exp. Total, Bureau of Accounts__ NOA Exp. 34,497 AS, 295 n303 33, 137 A3,016 } 42,999 44,016 A2, 279 2,904 } 10, 142 ------------- ------------ (Requirements for 1968 and 1969 are uncertain and are covered by the allowance for contingencies.) 6 6 6 6 ----------------------- Statutory award is paid annually as a result of a private relief act. 9,449 9,430 7,000 7,000 6,000 6,000 -1,000 -1.000 Judgments of $ I00 thousand or less are paid from this appropriation. 12, 753 12. 753 12,788 12,788 12,387 12,387 -401 -401 Appropriation covers interest payments on the uninvested balances of 8 trust funds. 500 Appropriation is necessary to offset increased losses. This fund is charged with losses in shipment of certain Government property and losses in redemption of savings bonds. ------------- 1.013 ------------- 265 ------------57 250 90,507 94,998 500 250 59,889 57,210 -1.013 ------------ 61,892 64,938 2,003 7,728 98,215 8,106 98, 131 7,967 - BUREAU OF CUSTOMS Salaries and expenses ________ 904 NOA 87,702 Exp. 86,845 89,272 D837 90,164 } A Proposed for separate transmittal under exi1ting legialation, other than pay 1upplemental. D Proposed for 1eparate transmittal, civilian pay act aupplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase is for processing and postage involved in an additional central disbursing work volume of 17 million items and for a Federal tax deposit workload of 19 million items. Additional funds will cover a 5% increase in persons arriving, a 9% increase in formal cargo entries, and strengthening of law enforcement. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted 1968 estimate 1969 estimate Explanation 1ncreue or I ( -) 1 decreue TREASURY DEPARTMENT-Continued Federal Funds-Co ntinued BUREAU OF ENGR AVING AND PRINTIN G General and apecial funda --Continued Air conditioning the Bu reau of NOA Engraving and Printin g build- Exp. ings _________________ ____ 904 Total, Bureau of Engraving NOA Exp. and Printing. 500 This appropriation will permit completion of the air-conditionin g 500 -617 ------------- -42 -42 ----------------------3,037 1, 117 500 500 458 -659 15,020 791 lntra&'overnmental funds : Bureau of Engraving and Print- Exp. ing fund _____________ _____ 904 500 ----------------------1,991 1, 117 1,046 project. (Decrease results from nonrecurring expenditures in 1968.) BUREAU OF THE MINT General and special fundaz Salaries and expenses ____ ____ 904 NOA 21,193 14,000 D229 } Increase due primarily to equipment acquisitions and need t 0 maintain dual operations during phasing in of the new Phila delphia Mint. Exp. 20, 118 17,838 15,890 -1,948 Construction of mint facili ties_904 Exp. 11,887 12,670 8,300 -4, 370 (Funds appropriated in 1965 and 1966 are sufficient to complete construction of the Philadelphia Mint.) Coinage profit fund (perm anent, NOA indefinite, special fund) ____ 904 Exp. 2,622 I, 624 I, 560 1,434 2,490 1,560 -64 -930 Decrease results from lower transportation and other costs related to reduced demand for coins. Total, Bureau of the M int___ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. 23,815 33,439 15,853 32,998 16,580 25,750 727 -7,248 BUREAU OF NARCOTICS 7,685 1,005 7,630 871 56,987 I, 789 61,100 8,421 21,967 2,084 22,411 3, 108 188,563 9,296 190,216 10,013 547,551 50,315 488,031 547,613 59,582 120,0~4 133,900 136,900 3,000 120,094 133,900 136,900 3,000 Salaries and expenses........ _908 NOA 6,275 6,592 D88 Exp. 6,207 6,759 Administering the public debt.. 904 NOA 53, 793 54, 743 D455 Exp. 51,944 52,679 Salaries and expenses ..•..... 904 NOA 18,959 19,960 D-77 Exp. 18,735 19,303 Revenue accounting and process• NOA ing •••••.. _..... _........ 904 Exp. 172,950 176,876 DZ, 391 171,334 180,203 Compliance ...••.....•...... 904 NOA 472,966 494,446 DZ, 790 Exp. 471,940 Refunding internal revenue collec- NOA tion&, interest (permanent, in- Exp. definite) .................. 852 } Added funds will provide an increase in enforcement staff and a program review capability. BUREAU OF THE PUBLIC DEBT } Increase results from the issue of 11 million additional securities in 1969 and the retirement of an additional 6 million securities. INTERNAL REVENUE SERVICE Internal revenue collections for NOA Puerto Rico (permanent, in- Exp. definite, special fund) ...... 910 } } } 59,803 65,000 67,000 2,000 59,334 65,000 67,000 2,000 D Proposed for 1eparate transmittal. civilian pay act supplemental, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Increase will provide staff support, internal audit, and security investigations for the additional staff. Increase covers upgrading of 2 of the existing master file computer systems, leasing of direct data entry systems by 3 regional service centers, and staff to process increased tax return workloads. Increase is essential to maintain compliance program levels on income tax returns that will rise from 109 million in 1968 to 112 million in 1969. Interest is paid at 6% per annum on internal revenue collections which must be refunded. Taxes on articles produced in Puerto Rico are paid to Puerto Rico. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollara)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1ncrease or I decrease ( - ) TREASURY DEPARTMENT-Continued Federal Funds-Continued INTERNAL REVENUE SERVICE-Con. Public enterprise funds: Federal tax lien revolving fund_904 NOA -----------500 This fund, established by the Federal Tax Lien Act of 1966, wiII 500 ----------Exp. ----------- ------------- ------------- -----------finance the purchase and resale of property on which there IS a tax lien. Total. Internal Reven ue Serv- NOA ICC, Exp. 844,772 841,437 89S, 786 886,437 961,981 964, 140 66, 19S 77,703 6,348 6,082 6,S88 6,567 6,878 7,008 290 441 Estimate includes full year cost of the salary increase. The workload caused by a 3% increase in checks paid and reconciled (to 579 million items) and a 112% increase in tax deposit form processed (to 49 million items) will be absorbed. Check forgery insurance f und_904 Exp. 24 -17 7 24 (This fund covers settlements of checks paid on forged endors ements.) Total, Office of the Tr easurer _ NOA Exp. 6,348 6, 106 6, S88 6,550 6,878 7,015 290 465 1S,49S 16,784 19,871 2,887 20,049 3,064 OFFICE OF THE TR EASURER General and apecial fund ., Salaries and expenses __ ______ 904 NOA Exp. Public enterpriae funds: SECRET SERV ICE General and apecial fund ., Salaries and expenses ___ _____ 908 NOA D200 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14,870 16,985 } Increase will strengthen protection and enforcement capabilities. Salaries and expenses, White House Exp. Police ____________________ 903 68 Salaries and expenses, Guard Exp. Force ____________________ 904 18 ------------- ------------- ------------ (Activities transferred to Salaries and expenses, U.S. Secret ------------- ------------ (Activities transferred to Salaries and expenses, U.S. Secret Service.) Service.) 671 727 Contribution for annuity benefits NOA (permanent, indefinite) ____ 903 Exp. Construction of Secret Service NOA training facilities _____ . ____ 9()8 Exp. ------------- 800 800 -------- ----- - . - - - - ------ ·- ·-- ----- ·----- ·- --- 800 ------------ The District of Columbia is reimbursed for benefit payments to U.S. Secret Service employees. 800 - -- - . - . - -- - 1,000 800 1,000 800 16,166 17,784 15,682 17,785 21,649 Interest on the public debt (per- NOA 13,391,068 manent, indefinite) ________ 851 Exp. 13,391,068 14,3SO,000 15,200,000 15,200,000 850,000 NOA 14,527,475 -396 15,504,891 -48 16,440,187 -57 935,296 -9 14,537,580 -396 15,508,630 -48 16,456,215 -57 Total, Secret Service __ . __ . __ NOA Exp. 21,671 Funds to be used to construct modern outdoor firing ranges for training purposes. 3,887 3,864 INTEREST ON THE PUBLIC DEBT Subtotal, Federal funds_____ LA Exp. NL 14,350,000 850,000 947,585 -9 Increase is due to a larger outstanding debt and to higher interest rates required to refinance certain maturing securities. Total Federal funds are distributed as follows: 1968 NOA Enacted ______ Repayments __ (A) _________ ( D) _________ LA Exp. 15,492,380 ---------5,295 NL 15,498,796 -48 7,216 ---------3,016 -48 6,818 /969 NOA Transmitted._ Repayments._ (A) _________ ( D) _________ A D Propoaed for separate transmittal under existing legislation, other than pay supplemental. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16,440,187 ---------- ------------------- LA Exp. NL 16,453,538 -57 ---------2,279 398 -57 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 1968 1969 enacted estimate estimate Increase or I (- ) Explanation I decrease TREASURY DEPARTMENT-Continued Trust Funds OFFICE OF THE SECRETAR y 4 4 14 18 7 7 -7 -11 Earnings are paid to the American Legion for maintenance o Pershing Hall in Paris, Franee. 2,757 7,777 3,964 4,997 5,389 6,285 1,425 1,288 Increases are principally for Polish, Rumanian, and Yugoslavian claims funds. 29,652 31,416 31,300 32,999 33,300 33,290 2,000 291 Increase due to higher level of receipts which are returned t 0 Puerto Rico and the Virgin Islands. Assessment funds ______________ 508 Exp. -2,099 -1.501 -1,231 270 (Assessments from chartering and supervision of banks are paid into this fund and are available for its operations.) Subtotal, trust funds _______ _ NOA Exp. 32,413 37,097 35,278 36,513 38,696 38,351 3,418 1,838 lnterfund and intragovernmental NOA -5,0/3 transactions ________________ 550 Exp. 850 NOA }-675,896 -6,/00 -6,800 -700 -672, 351 -652,607 19,744 900 NOA } -68,498 -74,987 -76,063 -/, 076 Pershing Hall Memorial Fund (per- NOA manent) ___________________ 904 Exp. BUREAU OF ACCOUNTS Bureau of Accounts trust funds (per- NOA manent) ___________________ 151 Exp. BUREAU OF CUSTOMS Bureau of Customs trust funds (per- NOA manent) ____________________ 904 Exp. OFFICE OF THE COMPTROLLER OF THE CURRENCY Adjustments https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } Exp. Exp. Applicable receipts from the publie__ --- _-- ----- _-- ___ -- ____ 050 NOA Exp. } -6,425 150 NOA }--106, 0/9 -5, 222 -/35,623 -4,5691 -136, 389 653 -766 Exp. 650 NOA } -44,583 Exp. 850 NOA }-/59, 735 ------------- ------------- ------------137,602 -/34,767 2,835 -52, 386 -57,951 -5,565 Exp. 900 NOA }-110,086 Exp. Repayments deposited in general fund ( included in details above) . Total, Treasury Department_ LA NL } NOA LA 13,083,633 -396 Exp. NL (-396) 13,098,422 -396 (--18) 14,455,898 -48 14,460,872 -48 (-57) 15,409, 737 -57 15,425,420 -57 (-9) 953,839 -9 964,548 -9 Totals for the Department are distributed as follows: /968 NOA Enacted ______ Repayments __ ( A) _________ ( D) _________ LA Exp. NL 14,443,387 ------- 14,451,038 -------48 -48 ------------------5,295 ------3,016 ------7,216 ------6,818 ------/969 NOA Transmitted __ Repayments .. ( A) •••••••.. ( D) ••••••••• A Propo1ed for for D Propo■ ed ■ eparate ■ eparate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tran1mittal under ni1tin1 le1i1lation, other than pay 1upplemental. tran1mittal, civilian pay act 1upplemental, 15,409,737 LA -------57 Exp. 15,422,743 NL -·-:..:.57 ----------------·-2,279 ---------------- ------398 ---------------- ------- Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I ( -) Explanation I decrease ATOMIC ENERGY COMMISSION Federal Funds General and ■ pecial fund a: Operating expenses _____ _____ 058 NOA Exp. 1,922,833 2,139,992 HH2,ZZS,600 2,003,409 2,022,000 NOA Exp. 276,030 369,133 282,565 311,000 Advances and reimburseme'nts_058 Exp. -22, 226 Plant and capital equipme nt__058 85,608 2,136,000 114,000 529,000 159,867 410,000 99,000 I I Increases for the weapons program, reactor development, and basic research are partially offset by decreases in procuremen of raw uranium and production of special nuclear materials. Provides for procurement of additional equipment and increased construction in support of the weapons program, the civilia n power reactor development program, and basic research. lntragovernmental funds Subtotal, Federal fun ds _____ ------------- ------------- ------------ NOA Exp. 2,198,864 2,509,125 2,754,600 245,475 2,263,749 2,333,000 2,546,000 213,000 Advances for non-Federal projects NOA (permanent) ___________ _____ 058 Exp. 531 391 338 -53 740 681 338 -343 -534 -391 -338 53 2,198,861 2,509,125 2,754,600 245,475 2,263,955 2,333,290 2,546,000 212,710 Trust Funds Advances from the Washington Public Power Supply System ar e for work related to construction of electrical facilities a t Richland, Wash. Adjustments Applicable receipts from the public NOA 050 Exp. T ot~l, .Atomic Energ y Com- NOA Exp. m1ss10n. ---- } ------------------------------------------- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis GENERAL SERVICES ADMINISTRATION --------------------------------------------~----------- Federal Funds REAL PROPERTY ACTIVITIES General and apecial funds: Operating expenses, Public Build- NOA ings Service _______________ 905 257,304 Exp. 258,462 2,027 oz57 270,746 Repair and improvement of public NOA buildings _________________ 905 Exp. 80,000 80,656 80,000 87,600 Construction, public buildings NOA projects __________________ 905 Exp. 125,318 151,849 63,758 126,300 82,000 -63,758 -44,300 Sites and expenses, public build- NOA ings projects. _____________ 905 Exp. 14,132 25,555 Z0,285 22,000 10,995 21,000 -9,290 -1,000 Payments, public buildings pur- NOA chase contracts ____________ 905 Exp. 6,746 6,766 Z,350 2,404 2,400 2,400 -4 so Provides for payment to contractors and taxing authorities on 5 remaining lease purchase projects. Expenses, U.S. court facilities_ 905 NOA Exp. 1,500 1,041 1,000 1,300 1,200 1,300 200 Provides for apace expansion and for furniture and furnishings of U.S. courts. Additional court facilitie1 _____ 905 NOA Exp. 6,000 1,377 3,500 3,200 -300 Construction, Federal Office Build- Exp. ing Numbered 7, Washington, 6,415 4,000 2,545 -1,455 Real property miscellaneous ac- Exp. counts ..•.........•..•..•905 155 164 268,471 C } 278,763 8,008 279,248 8,502 Increase is primarily for operation of new Federal buildings scheduled for occupancy in 1968 and 1969. 80,000 ------------ Continues program to alleviate deterioration and obsolescence of Federal buildings. 87,000 -600 All obligations will be made from prior year NOA which will provide for construction starts on 6 new projects in 1969. Provides for design and site acquisition. (The amount appropriated in 1967 provides facilities for newly appointed judgeships created by Public Law 89-372.) (Provides progreaa payments due in 1969.) D.C_ ... _... _______ . ___ .. 905 C Propoaed for aeparate tranamittal, wa~e-board aupplemental. D Propoaed for separate tran1mittal, civihan pay act 1upplemental. Include, $2,225,600 thouaand to carry out authorizins lesi,lation to be propoaed. lncludea $467,880 thouaand to carry out authorizins lesialation to be propoaed, HH 11 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -164 (No expenditures are anticipated from these activities,) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued e~!c6t~d I .,)?!~te Account and functional code -------- e,!;9!:te I}.:~::::\".:)! Explanation -------~---------~--------------------------------GENERAL SERVICES ADMINISTRATION-Continued Federal Funds-Continued REAL PROPERTY ACTIVITIES-Con lntragovernmental funds: Buildings management fund __ 905 Exp -2,448 -328 -300 28 public Exp 389 209 6,100 5,891 Advances and reimbursements_ 905 Exp 308 1,000 32 -968 Total, real property activities_ NOA Exp 491,000 438,148 373,358 -64,790 530,525 518,895 484,525 -34, 370 76,534 4,753 75,330 5,903 Construction buildings services, ____ 905 (Operating costs are estimated at $431.7 million.) (Operating costs are estimated at $15.2 million.) - PERSONAL PROPERTY ACTIVITIES General and special funds: Operating expenses, Federal Sup- NOA ply Service _______________ 905 Exp Salaries and expenses, automatic Exp data processing coordination 65,571 70,650 n 1,131 66,652 69,427 } Increase will support the expanding volume of supply sales, particularly to the military departments and AID. 41 ------------- ------------- ------------ (Activities combined under Operating expenses, Federal Suppl y Service.) 905 lntragovernmental funds: Automatic data processing fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA 905 Exp. ----------- 10,000 2,500 ------------7,205 -10,000 4,705 coor1968 appropriation pro~ided initial. operating cap~tal to ... - dmate Government wide automatic data processmg activ1t1es. General supply fund. ________ 905 NOA Exp. Total, personal property ac- NOA tivities. Exp. ;::~~ 1--------- 989 ·1------39,589-1-----38,600110,571 94,707 I 81,781 72,916 I } 76,5341 122,124 (Total sales to military and civil agencies are estimated at $954 million in 1968 and $984 million in 1969.) -5,247 49,208 RECORDS ACTIVITIES General and special funds: Operating expenses, National Ar- NOA chives and Records Service __ 905 Exp. 17,336 18,075 17,654 0 317 18,105 National historical publications NOA grants ____________________ 905 Exp. 350 399 350 396 17,686 18,474 18,321 18,501 5,900 6,036 5,880 Dl48 6,192 Federal telecommunications fund Exp. -5,227 Total, transportation and NOA communications activities. Exp. 5,900 809 Total, records activities_____ NOA Exp. 18,728 757 18,912 807 Increase is primarily to finance higher volume of agency record transfers to Federal records centers, to provide for increased reference service, and to expand professional archival capability. 350 ------------ Provides for continuing the collection of significant historical -25 source material. 371 19,078 19,283 757 782 6,510 482 6,516 324 216 4,488 4,272 6,028 6,408 6,510 II, 004 482 4,596 TRANSPORTATION AND COMMUNICATIONS ACTIVITIES Operating expenses, Transporta- NOA tion and Communications Service _______________________ 905 Exp. lntragovernmental funds: 905 D Proposed for separate tran1 mittal, civilian pay act 1upplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } Estimate is for increased workload and assistance to civilian agencies in the transportation and communication areas. (Operating costs are estimated at $107 million.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 eatimate estimate 1 ncrea■e (-) or \ Explanation 1 decreue GENERAL SERVICES ADMINISTRATION-Continued Federal Funds-Continued PROPERTY MANAGEMENT AND DISPOSAL ACTIVITIES General and ■pecial fund ■ , Operating expenses, property management and disposal service (special fund) : (Defense-related activities) _059 NOA 18,440 } 21,900 3,180 Exp. 16,160 21,180 5,020 (General property and records NOA management) ___________905 Exp. 9,280 8,040 8,600 8,300 -680 Operating expenses, Utilization NOA and Disposal Service _______ 905 Exp. Strategic and critical materials_059 NOA Exp. Expenses, disposal of surplus real NOA and related personal property Exp. (permanent, indefinite, special fund) ____________________ 905 Surplus real property credit sales NOA Exp. 905 LA NL Repayments deposited in gen- LA eral fund _______________ 905 NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ozso 9,000 9, 076 - - - - 500 - - - - 260 20 - - - - - - ::.::48ij- 20,091 18,587 3,200 2,000 685 1,000 1,000 916 1,100 1,000 } -39, /3/ } 39,/3/ }-37,327 Provides for increases in storage of stockpile materials, and disposal of excess stockpile materials. -1,200 (Activities transferred to Operating expenses, Property Management and Disposal Service.) (Activities transferred to Operating expenses, Property Management and Disposal Service.) Sales proceeds are appropriated for certain expenses of disposals. -100 Includes funds received for the repayment of credit sales of surplus Federal real property. -44,000 -40,000 4,000 lntragovernmental funds: Advances and reimbursements_059 Exp. 192 100 Total, property management NOA LA and disposal activities. Exp. NL -9,355 1,804 -10, 359 1,804 29,000 -44,000 29, 100 -44,000 Salaries and expenses, Office of NOA Administrator _____________ 905 Exp. 1,747 1,747 D46 1,791 } Allowances and office facilities for NOA former Presidents __________ 903 Exp. 235 235 Dl6 215 } 100 -- - - - - - - - - - 31,500 -40,000 32,600 -40,000 Z,500 4,000 3,500 4,000 1,944 151 1,946 155 267 16 310 95 900 900 900 900 GENERAL ACTIVITIES General and special funds: 1,781 200 Expenses, Presidential transition NOA 903 Exp. ----------- ----------------------- ------------- Refunds under Renegotiation Act Exp. (interest) ________________ 905 ----------- Estimate provides for policy direction, review of contract appeals, execution of legislative programs, and assistance to business con:erns. Provides funds for 2 former Presidents and the widow of a former President. Estimate submitted in accordance with the Presidential T ransition Act of 1963. 25 25 -191 -155 -159 -4 (Volume of receipts declines as liquidation continues,) 164 -200 -100 100 (This management fund finances central operations, primarily budget, financial management, personnel, audit, investigative and legal services, and general management.) zoo zoo Provides additional capital for printing and reproduction fa. cilities. ------------ (Interest on remaining refunds is covered by balances of prior appropriations.) Public enterprise funda: Reconstruction Finance Corpora- Exp. tion liquidation fund _______ 905 I ntragovernmental funda: Administrative operations fund Exp. 905 Working capital fund ________ 905 NOA Exp. Advances and reimbursements Exp. (automatic data processing activities) __________________ 905 D 100 ------------- -137 -58 200 87 400 200 Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 258 -200 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I ~ 1968 1969 estimate estimate 0 0 Explanation 1ncrease or I 1 decrease ( - ) GENERAL SERVICES ADMINISTRATION-Continued ---------- Federal Funds-Continued I I GENERAL ACTIVITIES-Continued lntragovernmental funda-Continued Public power bonds: Payments LA deposited in general fund ___ 905 NL NOA Exp. Total, general activities_____ Subtotal, Federal funds_____ NOA LA Exp. NL } -4,521 } 1,574 -1,988 3,656 -4,521 2,531 -1, 988 3,311 -1, 359 780 629 3,478 -4,521 2,505 -1,988 3,322 -1,359 817 629 619,458 -2, 717 575,809 -45,988 510,291 -41, 359 -65,518 4,629 637,635 -2, 717 648,325 -45, 988 672,858 -41, 359 24,533 4,629 i NOA LA Exp. NL -1,359 629 487 ------------- Includes funds received in repayment of loans financed by bond held by the former Public Works Administration. -487 Total Federal funds are distributed as follows: /968 NOA LA Exp, NL Enacted _____ Repayments_ (C) ________ 571,587 -487 644,264 -48 7 --------- -45,501 --------- -45,50 1 2,027 - - - ---2,027 --------( D) ________ 2,195 --------2,034 -- - --- 1969 NOA LA Exp. NL 672,697 ---------------41, 359 --------- -41,35 9 ( D) ________ --------161 - ---- - --------- --------- Transmitted_ Repayments_ Trust Funds REAL PROPERTY ACTIVITIES Advances and reimbursements __ 905 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I I I 12 - -- - -- - - -------- 510,291 RECORDS ACTIVITIES National Archives trust fund ____ 905 Exp. -229 -25 -60 -35 (Fees for microfilm and reproduction services and for admission to presidential libraries are used for operations.) National Archives gift fund (perma- NOA nent) ______________________ 905 Exp. 140 283 150 401 100 436 -50 35 Grants from foundations are received for historical research. Subtotal, trust funds ________ 140 66 150 376 100 -50 376 ------------ Applicable receipts from the pub- NOA }-47f,893 lie ______ __________________ 050 Exp. -171,500 -IOI ,700 69,800 -/,393 -/,386 -/, 371 /5 } -30,606 -40,65/ -36,051 4,600 (-45, 501) (-41, 359) (4, 142) 362,422 -4S,988 435, 164 -45,988 371,269 -41, 3S9 534, 112 -41, 359 8,847 4,629 98,948 4,629 NOA Exp. Adjustments 850 NOA Exp. 900 NOA Exp. Repayments deposited in general fund ( included in details above). Total, General Services NOA Administration. LA Exp. NL } ( -40, 275) 115,706 -2, 717 133,809 -2,717 Totals for the agency are distributed as follows: 1968 NOA Enacted _____ Repayments_ ( C) ________ (D) ________ LA Exp. NL 358,200 -48 7 -487 431, !03 -45,501 --------- -45,50 1 --------2,027 - -----2,027 ------2,195 - - - - - - - 2,034 - - - - - - - 1969 NOA Transmitted_ Repayments_ (D)-------C D Proposed for separate transmittal, wage-board supplemental. Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 371,269 LA --------- ----------------- --------- Exp. 533,951 -41,359 --------161 NL ------- - -41,359 ------- Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued -----------~~-··--- --------- ··- - - - ~ Account and functional code Explanation NATIONAL AERONAUTICS AND SPACE ADMINISTRATION ------ I Federal Funds I I General and special funds: Research and development_ __ 250 NOA ! 4,235,100 4,487,215 Exp. Construction of facilities _____ 250 NOA Exp I Administrative operations ___ .250 NOA Exp. Subtotal. Federal funds __ 250 NOA Exp, II 3,910,600 F3,677,200 -233,400 4,004,500 3,851,300 -153,200 85,000 37,800 F45,000 7,200 288,648 160,000 75,500 -84,500 647,483 640,373 F648,200 7,827 649,852 640,500 648,200 7,700 4,967,583 4,588,773 4,370,400 -218,373 5,425,715 4,805,000 4,575,000 -230,000 472 2,688 1,548 100 2,675 Decrease is primarily related to reduced requirements for the manned lunar landing program, partially offset by increases for manned space flight beyond the lunar landing, space applications, and aeronautics programs. Increase is related to requirements for tracking and data acquisition facilities. Increase is for the full year cost of salary increase. Trust Funds Miscellaneous trust funds (perma- NOA nent). _. ___ . _____ . _______ . _250 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,540 -1,140 -1. 135 Decrease results from reduced purchase of materials and services for the European Space Research Organization. A djustments -4,499 Exp. } -2,436 } -2 Total. National Aeronautics NOA and Space Administration. Exp. 4,965,618 4,586,960 4,368,594 -218,366 5,423,378 4,803,174 4,573,186 -229,988 Applicable receipts from the public NOA 250 Exp. 850 NOA -3,352 -2 1,147 -2 ------------ VETERANS ADMINISTRATION Federal Funds General and special funds: General operating expenses ___ 805 NOA 182,ZOO 183,182 A 1,125 0 5,600 } 198,549 8,642 Exp. 176,341 188,782 A I, 125 } 198,549 8,642 Medical administration and mis- NOA cellaneous operating expenses. Exp. 14,312 13,975 13,969 13,926 Medical and prosthetic research. NOA 804 Exp. 44,ZSS 45,850 47,953 Z,103 43,891 45,067 48,026 2,959 Medical care ________________ 8Q4 NOA 1,292,875 1,357,292 c4,300 1,420,264 58,672 Exp. 1,272,334 1,336,371 1,41_3, 136 76,765 14,734 759 14,789 863 804 A C D F Proposed for Proposed for Proposed for To carry out separate transmittal separate transmittal, separate transmjttal, authorizing legislation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } under existing legislation, other than pay supplemental. wa1e-board supplemental. civilian pay act supplemental. to be proposed. The increase covers additional workload resulting from the Veterans Pension and Readjustment Assistance Act of 1967 (Public Law 90--77). Increase distributed between postgraduate and inservice training, exchange of medical information, and payroll costs. Increase primarily provides for new and expanded medical research projects. Funds are provided for increased use of outpatient treatment and nursing homes, a one-third increase in education and training, activations of new hospitals, additional intensive care units, and other new medical services. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued - Account and functional code 1967 -=~cted I 1968 1969 estimate estimate Explanation I }enc~::::\".:) I ----~ VETERANS ADMINISTRATION-Continued Federal f'unds-Continued I I i General and special funds-Continued Compensation and pensions: (Veterans service-connected NOA compensation)_.________ .801 Exp. Z,402,538 2,310,096 Z,433,972 2,434,506 Z,461,392 2,461,392 27,420 26,886 Increase reflects a growth in caseload of 4.552 to 2,376,295, change to wartime rates, and other effects of Public Law 90--77. (Veterans non-service-connected NOA pensions) __ ____________ 802 Exp. 1,968,560 } z, 101,175 } 2,101.175 39,039 1,892,816 Z,014,636 A 47,500 2,015,078 A 47,500 The 1968 supplemental covers cost of increased pension rates under Public Law 90--77. The 1969 increase results from the full year cost of the new rates and from additional survivors on pension rolls. (Other veterans benefits and NOA services) _______________ 805 Exp. IOZ,902 98,943 109,392 109,416 91,769 91,769 -17,623 -17,647 Total, compensation and NOA pensions. Exp. 4,474,000 4,558,000 A 47,500 4,559,000 A 47,500 } 4,654,336 } 4,654,336 48,836 Readjustment benefits _______ 803 NOA 369,400 } 617,600 172,900 Exp. 291,907 427,ZOO A]7,500 500,777 Al7,500 } 617,600 99,323 Veterans insurance and indemni- NOA ties. __________________ .805 Permanent, indefinite, special NOA fund. 3,500 5,150 9,350 4,200 580 591 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4,301,855 38,597 Decrease reflects completion of one-time payments of death gratuities in 1968. 47,836 591 ------------ The 1968 supplemental and the 1969 increase provide for education and training benefits liberalized by Public Law 90--77. The increases are due to higher Federal contributions to other veterans insurance revolving and trust funds for deaths attributable to the effects of military service, Permanent, indefinite, special LA Exp. fund. 58 12,517 58 59 9,564 59 59 12,441 59 Grants to Republic of the Philip- NOA pines _____________________ 804 Exp. 1,136 443 1,325 1,825 1,776 1,776 451 -49 The number of outpatient visits to be supported will increase from 1,800 to 14,000. 8 8,900 B-18,1()() 8 8,900 B -18, JOO Proposed legislation resulting in refinements to certain statutory benefits will be more than offset by proposed liberalization of pension benefits. Decreased expenditures will occur in 1969 due to time required for implementation of new pension benefits. 33,338 65,700 -19,262 7,700 Provides continuing modernization of medical facilities, with fewer new starts. NL Proposed legislation __________ 800 NOA ----------- ------------- Exp. ----------- ------------- -----------2,877 ------------ Construction of hospital and NOA domiciliary facilities _______ 804 Exp. 52,125 59,980 58,000 Grants for construction of State NOA nursing homes _____________ 804 Exp. 4,000 77 4,000 2,400 8 1,120 292 -828 339 -116 -110 6 (Receipts of $63.6 million from canteen sales to hospital patients and staff approximately offset expenses.) 100,000 -100,000 154,000 -919 53,179 250,000 -11,275 65,530 115,000 3,585 81,817 -135,000 14,860 16,287 Decrease results from lower authorization to sell participation certificates in agency assets. Construction, Corregidor-Bataan Exp. Memorial__ _______________ 805 52,600 4,000 ------------ Program will continue at the same level. 3,000 600 (The Memorial will be completed in 1968.) Public enterprise funds: Canteen service revolving fund __ 805 Exp. Direct loan revolving fund (authorization to spend debt receipts): 803 Permanent_ ________________ _ Current_ ___________________ _ Current_ ____________ - - - -- _- - NOA NOA LA Exp. NL Proposed for separate transmittal under existing legislation. other than pay supplemental. B Proposed for separate transmittal under proposed legislation. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted 1968 1969 estimate estimate 1 Explanation 1ncrea,e or I decrease ( - ) VETERANS ADMINISTRATION-Continued Federal Funds-Continued Public enterpri ■e fund■-Continued Loan guaranty revolving fund: Authorization to spend debt receipts ________________ 8()3 Appropriation: Definite___________________ Indefinite __________________ NOA LA -lll,402 217,402 NOA NOA Exp. NL --------------------- Limitation on obligations _____ _ 6,289 217,402 (401,750) 353,565 246,435 119,145 280,855 -234,420 34,420 10,915 Increase is for interest insufficiencies on participation certificates. 665 ------ 11,580-} -23,064 -272 22,792 280,855 34,420 246,435 (386,046) ------------- (-386,046) No limitation on obligations is proposed for 1969. ------------- -8 Rental, maintenance, and repair of Exp. quarters __________________ 8()5 -7 Service-disabled veterans insur- NOA ance fund ________________ 8()5 LA Exp. NL -1,081 1,081 -1,578 1,081 -1,189 1,189 -35 1,189 -1, 519 1,519 -2,732 1,519 -330 330 -2,697 330 Soldiers' and sailors' civil relief _803 NOA LA Exp. NL -2 5 -2 2 2 -2 9 -2 -4 6 -4 4 2 -2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decrease results from lower authorization to sell participation certificates in agency assets. 8 ------------- -3 -2 (Receipts from rental housing offset maintenance costs.) Reffects outstanding loan balance. (Increase reffects rising number of premium payments.) (Loan volume exceeds repayments by an increasing amount.) (Reffects rate of repayment on loans receivable.) Veterans reopened insurance fund NOA 805 LA -296 296 -409 : 409 ! -475 475 -66 66 Exp. -33,577 296 -35,449 409 Veterans special term insurance NOA fund ____________________ 805 LA Exp. -2, 941 2,941 -3,262 3,262 -30,453 -3,471 3,471 -30,410 -31,659 -1,249 2,941 3,262 3,471 209 NL NL Exp. 2 Servicemen's group life insurance Exp. 118 Vocational rehabilitation revolving fund __________________ 805 -35,051 475 398 66 -209 209 -50 -60 -JO (This program is contracted to private insurance companies. Federal contributions for extra hazards are financed by the Department of Defense.) I, 149 890 -259 (Fund is estimated to net near zero on volume of $120 million). I Supply fund_ ____________ __805 Exp. -6.651 I Subtotal, Federal funds_ ____ NOA LA Exp. NL Reflects outstanding loan balance. (Premium and interest income continue to exceed death and other payments.) (Loan volume exceeds repayments by an increasing amount.) (This program is for loans up to $JOO. Repayment of loans by trainees continues to cover new loans.) -- - - -- - - - - 805 lntragovernmental funds: Reflects outstanding loan balance. (Receipts continue to exceed payments in this fund.) (Loan volume exceeds repayments by an increasing amount.) 6,322,668 375, 776 7,074,562 501,352 6, l06,890 274,955 7,136,655 401,375 62,093 -99, 977 6,683,724 316,882 6,946,142 368,192 262,418 51,310 Total Federal funds are distributed as follows: /968 NOA Enacted _____ ( A) ________ (C) _____ (D) ________ 6,998,537 66,125 4,300 5,600 LA - Exp. 501, 352 6,608,164 66,125 -- - - - - 4,135 5,300 NL 316,882 - /969 NOA A B C D Proposed Proposed Proposed Proposed for for for for separate separate separate separate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis transmittal transmittal transmittal. transmittal. =====1---,= under existing legislation, other than pay supplemental. under proposed legislation. wage-board supplemental. civilian pay act supplemental. Transmitted_ ( B) ________ (C) _______ (D) ____ - - 7,127,755 8,900 ----------------- LA Exp. 401,375 6,963,777 -18, 100 - - - - - - - -165 --------300 - ----- - - NL 368,192 ..i;:... 0 00 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code -- I .~::t~d I .. ~t.!:t. ..~?.!:t. I J.:~~:::· ( 0~) Explanation I -------- - ----'--------'--------'---------'------------------------ VETERANS ADMINISTRATlON-Continued ---- -----·------- Trust Funds National service life insurance (per- NOA manent) _________________ 805 LA Receipts appropriated: (Premium and other operating receipts.) (Payments from special and general fund.) (Interest on investments) _____ 559,830 133,083 647,160 55,000 714,143 -15, 100 (488,911) (486,093) (474,645) (5,794) (4,640) (5,000) 66,983 -70, 100 The National service (World War II) life insurance fund will cover about 5 million policies in 1969, with a face value of about $29 billion. (-11,448) Premium receipts and interest earned thereon are available for the payment of liabilities. (360) (198,208) (Zll,4Z7) (219,398) (7,971) Exp. NL 670,816 133,083 509,386 55,000 576,222 -15, 100 66,836 -70, 100 ( 1969 increase in expenditures primarily reflects larger volume of dividend payments.) Government life msurance NOA (permanent) ______________ 805 LA Receipts appropriated: -38,460 81,537 51,410 -1,600 129,375 -84,650 77,965 -83,050 The U.S. Government (World War I) life insurance fund will cover about 207,000 policies with a face value of about $1 billion. U.S. (Premiums and other operating receipts.) (Payments from special and general fund.) (interest on investments) _____ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exp. NL (]Z,607) (16,396) (7Z) (70) (30,398) (33,344) 84,145 81,537 74,737 -1,600 (11,629) (-4,767) Premium receipts and interest earned thereon are available for payment of liabilities. (70) -----------(33,026) 82,615 -84,650 ( -318) 7,878 -83,050 General post fund, National Homes (permanent) ________________ 805 NOA Exp. l,91Z 2,459 1,8ZO 2,280 1,790 1,780 -30 -500 Subtotal, trust funds________ NOA LA Exp. NL SZ3,Z8Z 214,620 757,420 214,620 700,390 53,400 586,403 53,400 845,308 -99, 7S0 660,617 -99,750 144,918 -1S3, ISO 74,214 -153, 150 lnterfund and intragovernmental transactions ________________ 800 NOA Exp. } -5, 866 -4, 710 -5,070 -360 Applicable receipts from the public NOA }-501,530 -497, 143 -488, 409 8,734 6,338, S54 590,396 6,356,914 489,575 7,273,099 S54, 7SZ 6,768,274 370,282 7,488,484 301,62S 7,113,280 268,442 215,385 -2S3, 127 345,006 -101,840 Fund is used for the welfare of veterans at homes and hospitals. Adjustments 800 Exp. Total, Veterans Administra- NOA tion. LA Exp. NL Totals for the Veterans Administration are distributed as follows: 1968 NOA Enacted __ - __ ( A) ________ (C) ________ (D) ________ LA Exp. 7,197,074 554,752 6,692,714 66,125 66,125 --------4,135 4,300 --------5,300 5,600 --------- NL 370,282 1969 NOA Transmitted__ (B) ________ (C) ________ (D) ________ Proposed Proposed Proposed D Proposed A B C for for for for separate aeparate separate separate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis transmittal transmittal tranamittal. transmittal. under existing legislation, other than pay 'supplemental. under proposed legislation. wage-board supplemental. civilian pay act supplemental. LA Exp. 7,479,584 301,625 7,130,915 8,900 --------- -18,100 165 --------- --------300 --------- --------- NL 268,442 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued I 1969 Account and functional code estimate Increase or decrease ( -) I Explanation OTHER INDEPENDENT AGENCIES Federal Funds ADMINISTRATIVE CONFERENCE OF THE UNITED STATES General and special funds: Salaries and expenses ________ 908 NOA Exp. --- Agg - --- - - ----- 250 A5Q 240 A38 88 250 162 } Provides for establishment of a conference to improve and develop procedures under various administrative laws. 228 -~--- Total, Administrative Con- NOA fcrence of United States. Exp. --------------- ----====== ___ - 50 278 2,370 2,329 2,260 2,318 7 13 13 162 228 ------ =·=== AMERICAN BATTLE MONUMENTS COMMISSION Salaries and expenses_ -- -- _805 NOA 2,160 2,122 Exp. -41 Decline in de sign program partially offset by increased operating costs. 58 Trust Funds Contributions (permanent) _____ 805 NOA Exp. 7 13 13 -I -I 6 Contributiona are used for Rowers and repair of non-Federal war memo rials. ------------ Adjustments Applicable receipts from the public NOA BOO Exp. Total. American Battle Mon- NOA uments Commission. Exp. } 2,166 2,134 2,376 2,272 - - - - - - - -- - - -- Z,342 2,331 I -34 59 ' https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Federal Funds ARMS CONTROL AND DISARMAMENT AGENCY General and special funda: Arms control and disarmament NOA activities- ________________ 151 Exp. 9,000 8,984 FJ0,000 1,016 9,508 9,300 9,500 200 223 ------------- -223 Increase is to provide for additional contract research, primarily in field tcsti11g and arms limitation. CENTRAL INTELLIGENCE AGENCY Construction ________________ 905 Exp. I, 432 (Major expenditures are for construction of facility designed for classified printing.) CIVIL AERONAUTICS BOARD Salaries and expenses _________ 508 NOA 11,312 I 8,983 n99 Exp. 11.536 9,074 Payments to air carriers ______ 501 NOA Contract authorization (perma- NOA nent, indefinite). Liquidation of contract authorization. Exp. 8,856 59,576 1,500 53,061 (54,645) 62,322 (51,000) 58,259 I } 9,700 618 9,644 570 ------s3;zff} (47,600) 53,932 -1,350 Increase is primarily for route authorization activity. Decrease reflects reduced need for subsidy due to improved carrier earnings. (-3, 400) (Appropriation for 1969 liquidates that part of subsidy contracts -4. 327 for which payments are due during the year.) I Subtotal. Federal funds___ NOA Exp. 79, 743 63,643 62,911 -732 73,858 67,333 63,576 -3, 757 Total Federal funds are distributed as follows: /968 Enacted ____ _ Transmitted_ ( D) _______ _ Proposed for separate transmittal under existing legislation. other than pay supplemental. D Proposed for separate transmittal. civilian pay act supplemental. F To carry out authorizing legislation to be proposed. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis /969 NOA Exp. 63,544 67,239 99 NOA 62,911 94 --------- Exp. 63,571 5 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 967 enacted I 1968 1969 estimate estimate Increase or I (- ) I decrease Explanation OTHER INDEPENDENT AGENCIES-Continued ---·-------~--- -- Adjustments CIVIL AERONAUTICS BOARD-Con. Applicable receipts from the NOA public ______________________ 500 Exp. Total, Civil Board. l -68 -90 -/00 -10 j Aeronautics NOA Exp. 79,675 63,553 6Z, 811 -742 73,790 67,243 63,476 -3, 767 Totals for the Board are distributed as follows: /969 /968 I I NOA Enacted __ Transmitte cl. ( D) ______ Exp. NOA 67,149 --------62,811 --------99 94 --------- Exp. 63,454 63,471 5 Federal Funds CIVIL SERVICE COMMISSION General and special funda: Salaries and expenses ______ .. _906 NOA Exp. Limitation payable under trust funds. Investigation of United States NOA citizens for employment by Exp. international organizations_. 908 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22,900 35,396 D9}0 21,135 (6,431) 35,632 (6,276) 600 ------------- 679 58 } 39,309 3,003 39,042 (6,460) 3,410 (184) _____________ 1··----- -58I Increase provides for expansion of executive manpower and training ac tivities and for implementation of new wage-board programs. (This appropriation has been consolidated into the Salaries and expenses appropriation.) 1 430 Annuities under special acts ___ 906 NOA ' 'A78 1 366 ' - lZ ' 1968 supplemental will provide for increased benefits to -4 widows of employees of the Lighthouse Service. Decrease for 1969 results from smaller number of annuitants. 40,780 3Z Estimate reflects an increase of 49,500 participating annuitants. 40,780 32 71,000 7Z,OOO 1,000 71,000 72,000 1,000 BZ0,000 Z0,000 12,000 12,000 328 51 -277 (This fund finances, on a reimbursable basis, security investigations performed at the request of other agencies.) 1,300 -154 -1,454 (This fund finances, on a reimbursable basis, training programs and miscellaneous services performed for other agencies.) 173,455 24,0Z3 165,095 14,649 I Exp. 1,367 1,314 A66 1,364 Al2 Government payment for annui- NOA tants, employees health bene- Exp. fits ______________________ 906 36,644 40,748 36,644 40,748 73,000 73,000 Payment to civil service retire- NOA ment and disability fund ___ 906 Exp. I } i i Estimate is to pay for increased costs of civil service benefits required by law. : Intergovernmental personnel as- NOA - - - - ------------sistance program __________ 906 Exp. 1----------- --------- - - - I B Proposed legislation in 1969 is for Federal assistance to State and local government personnel programs. lntragovernmental funds: Investigations (revolving fund) Exp. 906 -1,760 Advances and reimbursements_906 Exp. -1,209 I Subtotal. Federal funds _____ NOA Exp. 134,574 149,432 129,855 150,446 I I I I I Total Federal funds are distributed as follows: /968 NOA I ! I I I A ll D I Proposed for separate transmittal under existing legislation. other than pay supplemental. Proposed for separate transmittal under proposed legislation, Proposed for separate transmittal, civilian pay act" supplemental. t https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I Enacted _____ Transmitted_ ( A) ________ ( B) ________ (D) ______ - /969 Exp. 148,444 --------- 78 910 NOA 149,535 --------66 153,455 --------- 20,000 845 Exp. 153,018 12 12,000 65 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued At:count and functional code .~:c~~d I e,~;9~~te e,~;9~~te IJ;t::::: (~)I Explanation --------- - - - - - - - - - - ~ ~ - - - - - - - ' - - ~ - - - - - - - - - - - - - - ' - - - - - - - - - - - - - - - - - - - - • OTHER INDEPENDENT AGENCIES-Continued --------- - - - - - - - Trust Funds CIVIL SERVICE COMMISSION-Con. Civil service retirement and disabil- NOA 2,980,236 ity fund (permanent) ______ 654 LA 114,000 Receipts appropriated: I (Employing agency contribu1(1,190,532) tions.) (Deductions from salaries) ___ _ 1(1,190,468) (Federal contribution and (91,365) other income.) (Interest on investments)" ___ _ (621,881) Expenditures and net lending Exp. 1,965,119 NL 114,000 3,440,100 3,740,500 -114,000 (1,319,500) (1,364,700) (45,200) (1,319,500) (92,370) (1,364,700) (91,149) (45,200) (-1,221) (708,730) (97,221) (805,951) 2,121,337 2,363,565 -114,000 242,228 -114,000 -4,491 Employees health benefits fund Exp. (trust revolving fund) _______ 654 -18,538 -20,648 -25, 139 Employees life insurance fund ( trust Exp. revolving fund)____ _____ .654 -69, 295 -63, 111 -68, 074 Most civilian workers are covered by this fund. Under existing legislation, employees and employing agencies each pay 6½% of basic salaries. About 917,800 persons are expected to be on annuity rolls by June 30, 1969. 300,400 -114,000 (Employees health benefits fund will have about 2.7 million participants by June 30, 1969.) I Retired employees heal th benefits Exp. fund ( trust revolving fund) ___ 654 Subtotal, trust funds_.__ ____ NOA LA Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 -4, 963 I -518 -818 1,542 I I 2,360 ! (Fund will have about 200,000 participants by June 30, 1969.) _ _ _ _ _ _ _ _ _ _ _ ._ _ _ _ _ _ I_ _ _ _ _ _ 2,980,236 3,440,100 114,000 --- --------1,876,768 2,036,760 -~1~~~ 1- _______ (Employees life insurance fund will have 3.2 million participants by June 30, 1969.) 3,740,500 I 300,400 -114,000 -114,000 2,271.894 235,134 -114.ooo -114.ooo I Adjustments lnterfund and intragovernmental NOA transactions ••.•............ 650 Exp. } -/,066 -/ ,060 Applicable receipts from the public NOA 900 Exp. } -/ -/ Total, Civil Service Com- NOA m1ss10n. LA Exp. NL -1,090 -30 -I ------------ 3,113,743 3,912,864 -114,000 324,393 -114,000 Totals for the agency are distributed as follows: 2,005,556 2,186,145 114,000 ------------- 2,435,898 -114,000 249,753 -114,000 NOA 3,588,471 114,000 ------------- /968 Exp. Enacted .•.. 3,587,483 (A) ... _. __ 78 ( D) -······ 2,185,234 66 845 9IO 1969 NOA LA Exp. NL Transmitted 3,892,864 -114,000 2,423,821 -114,000 (A) ....... --------- --------12 --------I B)·-----· ( D) ....... 20,000 --------- --------- --------- 12,000 --------65 --------- Federal Funds COMMISSION OF FINE ARTS General and special funds: Salaries and expenses .... __ .. 555 NOA Exp. 115 115 117 I08 2,489 2,650 2,450 2,617 115 ------------ Advises the President, Congress, and department heads on 7 115 matters of architecture, sculpture, and painting. COMMISSION ON CIVIL RIGHTS Salaries and expenses .... ·--·908 NOA Exp. 2,650 2,600 ··--- --17·1 I Proposed for separate transmittal. under existing legislation, other than pay supplemental. B Proposed for separate transmittal under proposed legislation. D Proposed for separate transmittal. civilian pay act supplemental. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Estimate will finance national and regional conferences and a study of civil rights problems of American Indians. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 1969 estimate estimate Increase or I ( -) I decrease Explanation OTHER INDEPENDENT AGENCIES-Continued Federal Funds-Continued >-'l ;I1 t"l DISTRICT OF COLUMBIA tl:I c:j General and apecial funda-Continucd Federal payment to District of NOA Columbia _______________ __ 555 Exp. 61,394 67,478 61,394 A6,021 67,478 A6,02) 73,282 10,200 73,282 B J0,200 9,983 B 9,983 1968 supplemental is for the balance of the current Federal payment authorization of $70 million. Estimate for 1969 includes $70 million to help defray expenses of the government of the District and $3.3 million for water and sewage services to the Federal Government. Supplemental in 1969 anticipates proposed legislation to fix the payment authorization at 25% of local general fund revenues. t::, C'.l t"l >-'l >zj 0 ;1' >zj ..... r/J Loans to the District of Columbia LA for capital outlay _______ _555 Exp. NL Repayments deposited in gen- LA era I fund of U.S. Treasury. NL 43,574 Loans are interest-bearing to assist in financing the public works program of the District of Columbia Government and the city's share of rail rapid transit construction. Expenditure estimates for 1968 and 1969 reflect writeoff of 50% oF loans for Dullea interceptor sewer line. C":i 506 ------------ Advances are made to meet interest payments on bonds which cannot be met from receipts. The advances are regularly 506 -----------repaid from local funds. "" "" 79,200 103,679 ----------- 11,200 15,600 800 67,200 } -1,840 -2,032 -2,623 757 757 506 506 -757 -757 21,450 24,479 -10,400 51,600 -591 555 Advances to stadium sinking fund, Armory Board (permanent, indefinite authorization to spend debt receipts) __ ._ .555 Repayments deposited in genera! fund of U.S. Treasury.555 LA NL LA NL Repayable advances to the Dia- LA trict of Columbia general fund NL (permanent, indefinite) .. __ .555 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 33,000 ----------- -5G6 39,000 40,000 3,000 ------------- 251 1,000 -3,000 Temporary advances are made to meet short-term fiscal requirements resulting from variations in the rate of disbursements and tax collections during the year. > t" ><I ttJ > ;1' .... 0, gg t 0 0 Adjustments Repayments deposited in general LA fund of U.S. Treasury (included NL in details above). Total, District of Columbia__ f NOA LA Exp. NL ( -2 ,789) (-3,/29) (-340) 61,394 74,734 73,499 115,917 83,482 141,056 9,983 25,139 61,394 19,610 84,699 16,317 84,282 64,577 -417 48,260 } (-2,597) Totals for the District of Columbia are distributed as follows: /968 NOA Enacted _____ Repayments_ ( A\) ________ LA NL Exp. 67,478 118,706 78,678 -2,789 ----------------6,021 --------6,021 19,106 -2;789 /969 NOA Transmitted_ Repayments_ (B) ________ I Federal Funds LA NL Exp. 73,282 144,185 74,082 -3,129 ----------------10,200 --------10,200 67,706 -3,129 EQUAL EMPLOYMENT OPPORTUNITY COMMISSION General and apecial funda; Salaries and expenses ________ 652 NOA 4,993 6,471 DJS9 Exp. 4,631 Total, Equal Employment NOA Opportunity Commiuion. Exp. 4,993 4,631 13,093 6,463 7,379 12,772 5,393 Increase reflects higher complaint workload, elimination of complaint backlog, and initiation of an affirmative enforcement program. 6,630 13,093 6,463 Totals for the agency are distributed as follows: 7,379 } 12,772 5,393 Enacted _____ Transmitted_ (D) A B D Proposed for separate trans mitt al under existing legislation, other than pay a upplement al. Proposed for separate transmittal under proposed legislation. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis /969 1968 NOA 6,471 Exp. NOA 7,226 --------13,093 --------- --------159 153 --------- Exp. 12,766 6 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 estimate 1969 estimate Increase or I (- ) I decrease Explanation OTHER INDEPENDENT AGENCIES-Continued ------------------------------------------------------------- Federal Funds-Continued EXPORT-IMPORT BANK OF WASHINGTON Public enterprise funds: Export-Import Bank of Washington fund: 152 Program activity (permanent, LA indefinite authorization to Exp. spend debt receipts). NL Limitation on administrative expenses. 778,610 865,100 -103,628 539,626 -143,704 716,263 (4,262) (4,190)} C (2) 608,000 -257,100 -109,651 34,053 660,278 } -40, 985 B15,000 (4,932) Decrease results from lower net sales of participation certificates. Proposed legislation will establish an Export Expansion Program by means of direct, guaranteed, and insured loans. (627) Funds are provided :for salary increases and an expanded workload due to greater loan activity. D ( 113) Limitation on program activity_ Total. Export-Import Bank of LA Washington. Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (2,708,241) (2,672,000) (2,552,050)} B(2()(),QQQ) (80,050) 778,610 865,100 608,000 -257, 100 -103,628 539,626 -143,704 716,263 -109,651 675,278 34,053 -40,985 Totals for the agency are distributed as follows: /968 Enacted ______ LA 865,100 Transmitted ___ LA 608,000 Exp. -143,704 NL 716,263 /969 ( B) __________ =====--- ======= =======:'===== --------- Exp. -109,651 --------- NL 660,278 15,000 FARM CREDIT ADMINISTRATION -89 Revolving fund for administrative Exp. expenses ________________ 352 Limitation on administrative expense. (3,057) Short-term credit investment fund Exp. ----------- 352 -14 ------------(3,282) D(58) (3,436) (Activity is financed by assessments collected from banks in the farm credit system. The increase is for additional personnel (96) and related costs.) 14 1,000 800 -200 (Expenditures in 1968 and 1969 are in production credit associations. Federal intermediate credit banks will obtain resources by borrowing privately. The reduction reflects repayments to the fund of $200 thousand.) (The return of capital will reduce the Government investment in the banks to $23 million.) Banks for cooperatives investment Exp. fund _____________________ 352 -13,087 -5,484 -9,000 -3,516 Subtotal, Federal funds_ ____ Ex;,. -13,175 -4,498 -8,200 -3,702 44,53Z 6,152 -38,380 -7,464 249,300 -2.229 238,200 5,235 -11.100 Trust Funds Banks for cooperatives fund (per- LA manent authorization to spend Exp. debt receipts) ______________ -352 NL ----------- 2,050 192,600 Federal intermediate credit banks LA fund (permanent authorization to Exp. spend debt receipts) __________ 352 NL 188,594 439, 98Z 534,444 94,46Z -9, 952 478,500 -35,896 499,700 -53,896 532,900 -- 18,000 33,200 Subtotal, trust funds ________ 188,594 484,514 -7, 902 671, 100 -43,360 749,000 B C D LA Exp. NL Propoaed for separate transmittal under proposed legislation. Proposed for separate transmittal. wage-board supplemental. Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 540,596 56,08Z -56, 125 771. 100 -12, 765 22, 100 The 13 banks, which are about 91 % privately owned, will make loans totaling $2.4 billion during 1969, an increase of $270 million over the 1968 level. Loan repayments increase by about $281 million in 1969. The 12 banks, which are about 55% privately owned, will make loans totaling $9.5 billion during 1969, an increase of $1. 132 million over the 1968 level. Loan repayments increase by about $1,099 million in 1969. These banks provide technical and financial assistance to 463 production credit associations and other financial institutions. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 estimate 1969 estimate Explanation 1ncrea,e or I decrease ( - ) 1 OTHER INDEPENDENT AGENCIES-Continued ------ ------------------------------------------------- Adjustments I FARM CREDIT ADMINISTRATION- I Continued lnterfund and intragovernmental NOA transactions ________________ 350 Exp. 900 NOA Exp. } } -4,490 -4,772 -6, 300 -2 -I -I -4,492 188,594 -25,569 671, 100 Total, Farm Credit Admin- NOA istration. LA Exp. NL -4, m \ 484,514 , -52,631 749,000 -1,528 ------------ -6, 301 540,596 -70, 626 771, 100 -1, 528 56,082 -17, 995 22. 100 157 157 -5 6 Decrease reflects anticipated stabilization of workload following recent legislation. 21,271 2,097 20,564 1,472 Increase is primarily for greater workload in the community antenna-TV activity and for research into more effective use of the electromagnetic spectrum. 21,271 .Federal .Funds FEDERAL COAL MINE SAFETY BOARD OF REVIEW General and special funds: Salaries and expenses_ _____ _652 NOA Exp. FEDERAL COMMUNICATIONS COMMISSION 178 76 162 151 i Salaries and expenses ________ 508 NOA 17,852 Exp. 17,965 19,100 } n74 19,092 17,8521 19,1741 Subtotal, Federal funds_ ____ NOA Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I 17,965 19,092 20,564 I 2,097 1,472 Trust Funds -119 ------------- ------------- ------------ (Fund is used as clearinghouse for settlements with foreign International telecommunications Exp. settlements trust revolving fund (trust revolving fund) ________ S08 governments on radiotelephone and radiotelegraph messages.) Adjustments Applicable receipts from the pub- NOA lie _________________________ 500 Exp. Total, Federal Communica- NOA tions Commission. Exp. } -2 ------------- ------------- -----------17,850 17,844 19,174 21,271 2,097 19,092 20,564 1,472 Totals for the agency are distributed as follows: 1968 NOA Enacted _____ Transmitted_ 1969 Exp. NOA 19,100 19,036 --------21,271 ----------------( D) ________ 74 56 --------- Exp. 20,546 18 Trust Funds FEDERAL DEPOSIT INSURANCE CORPORATION Federal Deposit Insurance Corpora- Exp. tion funds ____________ - _- ___ 506 D -238,858 -261,450 Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -273,800 -12,350 (Insured deposits continue to grow with expansion of the population and the economy. The cumulative net income retained as a reserve is estimated to be $3.6 billion by June 1968 and $3.9 billion by June 1969. The principal revenues are from insurance assessments (approximately $122 million for 1968 and $127 million for 1969) and interest on investments ( $148 million and $160 million for the same 2 years). Premium r~ceipts and interest on investments in U.S. securities exceed current claims and expenses; corporation has no capital stock.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued. A·c-co_u_nt~:~-lu_n_ct-io_n_•_l-co_d_•--~ ~~:_:t_~-d~l__.._:i_9!_!_t•-~-e■-!,_·9!_:_t•-~l_d_l•n_•~_::_~_~•_<_~_)~I__________E_x_p_l•_n_•_ti-on_________ OTHER INDEPENDENT AGENCIES-Continued Federal Funds FEDERAL FIELD COMMITTEE FOR DEVELOPMENT PLANNING IN ALASKA General and special funds: Salaries and expenses ________ 507 NOA Exp. 190 23S 298 63 181 238 302 64 ---~--- Committee will continue to develop and coordinate plans fo the economic development of Alaska. FEDERAL HOME LOAN BANK BOARD Public enterpriae funda: Federal Home Loan Bank Board NOA revolving fund (authorization Exp. to spend debt receipts) __ 551 Limitation on administrative and nonadministrative expenses. Federal Savings and Loan Insur- Exp. ance Corporation fund ___ 551 NL Limitation on administrative expenses. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13,200 ------------- ------------- ------------ (1968 expenditures include acquisition of land for new head -3,850 quarters building.) 4,581 -158 731 (17,875) -201,029 43,712 (285) (18,190) } D (87) -388,766 -8,000 (298) D 8 (19,484) -379,170 -20,000 (340) (1,207) Increase in administrative expenses is due to the larger numbe of institutions and growth in total assets. 9,596 (Increase reflects nonrecurring speedup of premium collection -12,000 in 1968.) (34) Home Owners Loan Corporation Exp. fund _____________________ 551 I I 13,ZOO -------------201, 186 -384,184 -8,000 43,712 Total, Federal Home Loan NOA Bank Board. Exp. NL 1 ------------ (Expenditures are for interest on matured bonds.) I ------------- -378,438 -20,000 -----------5,746 -12,000 FEDERAL MARITIME COMMISSION General and ■ pecial funds: Salaries and expenses ________ 508 NOA I Exp. 3,454 3,600 0 50 3,640 Subtotal. Federal funds_ _ _ __ NOA Exp. 3,419 3,454 3,650 3,640 3,419 } 3,67S ZS 3,660 20 3,67S 3,660 ZS 20 Regulatory program will continue at about the 1968 level. Total Federal funds are distributed as follows: 1968 NOA Enacted _____ Transmitted_ (D) ________ /969 Exp. NOA Exp. 3,600 3,595 --------3,678 --------- --------45 --------50 3,655 5 Adjustments Applicable receipts from the public NOA 500 Exp. Total, Federal Maritime Com- NOA m1aa1on. Exp. } -7 3,41Z 3,447 -6 I 3,644 3,634 -6 -----------3,67Z 3,654 ZS 20 Totals for the agency are distributed as follows: /968 NOA Enacted .. ___ Transmitted_ (D) ________ D Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3,594 /969 Exp. NOA 3,589 --------3,672 --------- --------50 45 --------- Exp. 3,649 5 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted ~---···-·· I 1968 1969 ea ti mate eatimate Increase or I (- ) Explanation I decreaae ---··------ OTHER INDEPENDENT AGENCIES-Continued ---- ----- I Federal Funds I FEDERAL MEDIATION AND CONCILIATION SERVICE I General and apecial funda: Salaries and expenses ________ 652 NOA 7,197 Exp. 7,079 7,411 0 Z6 7,398 Total, Federal Mediation and NOA Conciliation Service. Exp. 7,197 7,079 7,437 7,398 l 8,090 653 8,010 612 8,090 653 612 8,010 The increase is primarily for an anticipated higher volume of dispute and preventive mediation activity. Totals for the agency are distributed as follows: /968 NOA Enacted _____ Transmitted_ (D) ________ /969 Exp. NOA 7,373 --------8,090 --------26 25 --------- Exp. 7,411 8,009 1 FEDERAL POWER COMMISSION Salaries and expenses________ 401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA 14,ZZ0 Exp. 14,009 14,ZZ0 0 440 14,643 l 16,060 1,400 1s. 9so I 1,337 The increase is primarily to minimize risks of future extensive local and regional electric power system blackouts. 96 Payments to States under Federal NOA Power Act (permanent, indefi- Exp. nite, special fund) _________ 401 Subtotal, Federal funds_____ NOA Exp. 99 71 96 14,316 14,759 14,081 14,739 99 ------------ States are paid 37.5% of license receipts from hydroelectric 99 3 projects in national forests and public lands. 16,159 16,079 1,400 1,340 Total Federal funds are distributed as follows: /968 Enacted ____ . Transmitted_ ( D) _____ _ Exp. 14,319 14,3!0 440 429 Adjustments Applicable receipts from the NOA public_ -- ____ -- __ -- - - -- __ . .400 Exp. Total, Federal Power Com- NOA mission. Exp. } -13 -12 -12 14,303 14,747 16,147 14,067 14,727 16,067 1969 NOA NOA Exp. 16,159 16,068 II --- -------- 1,400 1,340 Totals for the agency are distributed as follows: /968 Enacted ____ _ Transmitted_ ( D) _____ -- /969 NOA Exp. 14,307 14,298 440 429 NOA Exp. 16,147 16,056 II Federal Funds FEDERAL RADIATION COUNCIL General and apeclal funda: Salariea and expenaea .. ______ 903 NOA Exp. 131 I07 131 122 D Proposed for 1eparate tranamittal, civilian pay act 1upplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 127 121 -4 -I The Council advises the President on radiation matters affecting health. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I decrease ( - ) I Explanation OTHER INDEPENDENT AGENCIES-Continued Trust Funds FEDERAL RESERVE SYSTEM, BOARD OF GOVERNORS Federal Reserve System, Board of Governors __________________ 904 Exp. -48 -94 14,378 15,150 -117 -23 (Operations are financed by levies upon the Federal Reserve banks, in proportion to their capital and surplus.) 16,127 846 1969 estimate provides for administration of a new regulation relating t o the labeling of wool imports, and for additional work under the Fair Packaging and Labeling Act. Federal Funds FEDERAL TRADE COMMISSION General and special funds: Salaries and expenses ________ 508 NOA Dl31 Subtotal. Federal funds ______ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } Ex p. 14,108 15,011 15,113 102 NOA Ex p. 14,378 14,108 15,281 15,011 16, 1271 15,113 846 Total Federal funds are distributed as follows: 102 1968 Enacted_ Transmitted_ (D) ____ Exp. 15,150 14,900 --------16,127 --------- ----------------131 111 .... 1969 NOA NOA Exp. 15,093 20 "' "' 0) I Adjustments I Applicable receipts from the public NOA 500 Exp. Total, Federal Trade Com- NOA mission. Exp. } -3 -4 14,375 14,105 15,Z77 15,007 -41-----------16,1Z3 15,109 Totals for the agency are distributed as follows: 846 102 /968 Enacted _____ Transmitted_ ( D) ------- - /969 NOA Exp. 15,146 14,896 --------- --------131 111 NOA 16,123 --------- Exp. 15,089 20 Federal Funds FOREIGN CLAIMS SETTLEMENT COMMISSION General and special fund ■ : Salaries and expenses ________ 151 NOA Exp. Payment of Philippine war dam- Exp. age claims ________________ 151 Subtotal Federal funds _____ NOA Exp. Z,000 1,683 l,Z75 1,321 Estimate reflects salary increases. 56 6 1,331 1,327 -24 ------------- ------------- ------------ (Payments were concluded in 1967.) 1,331 1,327 56 6 NOA ----------- - - - - - - ---- - - 19,339 198,724 Exp. 9,500 9,502 9,500 -189,222 }- - - - - - - - - - ------------- -,o.ooo Z,000 1,658 l,Z75 1,321 Trust Funds War Claims Fund (permanent)-151 Alien property fund receipts are appropriated for claims under the General War Claims Act. · Adjustments Interfund and intragovernmental NOA transactions ________________ I50 Exp. Total Foreign Claims Settle- NOA ment Commission. Exp. D 2,000 20,997 l,Z75 200,045 Propoaed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I -10,000 831 I -444 I 8291 -199,216 I Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued · I Account and functional code 1967 enacted I 1968 1969 estimate estimate 1 Explanation 1 ncrca,e or I decrease ( - ) OTHER INDEPENDENT AGENCIES-Continued Federal Funds HISTORICAL AND MEMORIAL COMMISSIONS General and special funds: A325 JOO American Revolution Bicentennial NOA Commission: Salaries and ex- Exp. penses _______________ 910 Corregidor-Bataan Memorial Com- NOA mission: Salaries and expenses. Exp. 805 Lewis and Clark Trail Commis- NOA sion: Salaries and expenses_ -405 Exp. Miscellaneous appropriations_9IO NOA Exp. Subtotal, Federal funds_____ NOA Exp. -325 A2QQ A 1968 supplemental is for expenses of the Commission until submission of its report in July 1969. 100 authority expired in May 1967. Construction ~t -------------1- ---- --- - --- ------------ Theof Commission's the Memorial is being supervised by the Department of the - 25 27 I 25 26 - ZS 25 -1 Navy. The Commission will continue work on its report due in October 1969. 80 ------------- ------------- ------------ (Activities of a group of historical and memorial commissions are expected to be completed in 1968.) 75 71 -------------71 130 124 350 197 25 225 -325 28 0, "' Trust Funds -1 Civil War Centennial Commission, Exp. donations ___________________ 910 Total, historical and memorial commissions. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA Exp. 130 124 350 198 25 225 -325 27 .... "' (All donations will be completely utilized during 1968.) Federal Funds INDIAN CLAIMS COMMISSION General and special funds: Salaries and expenses ________ 902 NOA 500 394 Exp. 336 Total, Indian Claims Com- NOA m1ss1on. Exp. 394 336 A45 489 A45 } 619 74 } 619 85 545 619 74 534 619 85 Increase is primarily to expedite the disposition of claims. INTERGOVERNMENTAL AGENCIES Advisory Commission on Inter- NOA governmental Relations: Salaries Exp. and expenses _____________ 910 lntragovernmental S10 551 41 494 539 45 Total, Advisory Commission NOA on Intergovernmental Re- Exp. lations. -49 49 ------------- 4361 385 -49 S10 551 41 543 539 -4 879 122 879 122 I ■pecial fund ■ , Appalachian Regional Commiamisaion: Salaries and expenaea. _. __ .507 NOA Reappropriation ___________ _ NOA Exp. ! ' 1,100 746 11 ----------994 757 } lntragovernmental funda: Advances and reimbursements-507 Exp. Total, Appalachian Regional Commission. A Funds are provided for increased salary costs, fund ■ : Advances and reimbursements.910 Exp. General and 436 434 NOA Exp. -325 ------------1.100 670 I ------------- -----------879 lZZ 7571 757 879 Proposed for separate transmittal under existing legislation. other than pay supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 122 The Commiaaion develops, plana, and coordinates comprehensive programs for regional development in Appalachia. In 1969, 13 States will pay 50% of the Commiaaion'a operating coat. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate eatimate 1 Explanation 1ncrease or I decrease ( - ) OTHER INDEPENDENT AGENCIES-Continued ---·· Federal Funds-Continued INTERGOVERNMENTAL AGENCIES-Continued General and apecial funda: Commission on the Status of Exp. Puerto Rico: Salaries and expenses ___________________ 9IO 132 ------------- ------------- ------------ (Final report waaaubmittedinAuguat 1966.) Delaware River Basin Commis110n: Salaries and expenses ______ 401 NOA 45 45 47 z Exp. 41 45 47 2 NOA 115 134 ZSI 117 Exp. 115 134 251 117 Total, Delaware River Basin NOA Commission. Exp. 160 179 179 Z98 298 119 119 Contribution _____________ -401 Interstate Commission on the NOA Potomac River Basin: Contri- Exp. bution _____________ - ____ _555 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 156 ------5 5 5 5 Provides for expcnaes of the U.S. Commiaaioner, his alternate, and assistant. Increase is primarily for F cderal share of the Commission's water quality program. 5 ------------ The United Sta tes contributes $5 thousand annually for the 5 ------------ Commission's efforts to reduce pollution. Washington Metropolitan Area NOA Transit Authority: Federal con- Exp. tribution ____ _.. __________ 555 Subtotal, Federal funds _____ --------- -- ' ------------1,000 ----------- 55,147 55,147 18,000 17,000 NOA Exp. 1,701 1,451 56,880 55,429 1,348 2,484 19,721 17,237 Appalachian Regional Commission: NOA Miscellaneous trust fund accounts Exp. (permanent) ________________ 507 14Z 1,398 1,592 194 128 1,398 1,592 194 Commission on the Status of Puerto Rico: Contributions (permanent) NOA Exp. ZS 183 Subtotal, trust funds ________ NOA Exp. 167 Increase provides for initial construction of rail rapid transit system and continuation of engineering and right-of-way acquisition activities. Expenditures in I 968 were made from balances transferred from the National Capital Transportation Agency. Trust Funds 910 !------------- ------------- -----------I- ____________ ------------------------ I 311 1,3981 1,592 194 1,398 1,592 194 -728 -816 -88 -70 -776 -706 Adjustments lnterfund and intragovernmental NOA transactions _______ .......... 500 Exp. }· - - - - - - - - - Applicable receipts from the public NOA 500 Exp. 900 NOA Exp. } Total, intergovernmen- NOA tal agencies. Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } -142 -25 ------------- ------------- -----------1,701 Z,051 1,492 3,084 I I I I 56,880 54,829 19,721 16,637 The 13 Appalachian States provide 50% of the operating cost of the Commission. (Final report was submitted in August 1966.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 ea ti mate estimate I ncreaae or I ( -) Explanation I decreaoe OTHER INDEPENDENT AGENCIES-Continued Federal Funds INTERSTATE COMMERCE COMMISSION I Salaries and expenses ______ __ 508 NOA I i General and apecial funda: Payment of loan guaranties __ 508 LA 17,400 17,368 NL Subtotal. Federal funds _____ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA LA Exp. NL Z3,460 0 386 23,868 27,107 Exp. Recoveries on loan guaranties: LA Repayments deposited in gen- NL eral fund _________________ 508 Z7, 169 } - - - - - ------------ --·· } - Z3,995 149 24,109 241 - - --------- - ----------- - - ------ ------------ - - -332 -J.IO -340 Z7, 169 17,068 27, 107 17,036 Z3,846 -340 23,868 -340 Z3,995 -340 24,109 -340 Regulatory activity will continue at about the same level. Payments required only in event of default by carrier wit h guaranteed loans. ·----------- 149 -- - - -- - Total Federal funds are distributed as follows: -- /968 241 ---------- NOA Enacted _____ Repayments_ (D) _________ 23,460 --------- 386 LA NL Exp. 23,517 --------- -340 -------- -340 -- --- - 351 ------- - - - - - -- /969 NOA Transmitted_ Repayments_ (D) ________ 23,995 ----------------- LA --- - --- Exp. 24,074 NL ----- -340 --------- -340 --------- 35 -- -- ---- Adjustments ... Applicable receipts from the pub- NOA lie- --- ________ - - --- --- ___ 500 Exp . -IOI -103 -103 ------------ 0 Repayments deposited in general LA fund (included in details above). NL ( -332) ( -340) (-340) ------------ 27,068 17,068 23,743 -340 23,892 27,006 17,036 23,765 -340 24,006 -340 0 t o· f "' (X) l Total, Interstate Commerce NOA LA Commission. Exp. NL 149 Totals for the agency are distributed as follows: -340 /968 241 NOA Enacted _____ Repayments_ ( D) ________ LA Exp. 23,357 NL 23,414 -340 --------386 --------351 -340 /969 NOA Tr ans mi tted _ Repayments_ ( D) ________ LA 23,892 --------- ----------------- Exp. NL 23,971 -340 --------35 -340 --------- Federal Funds NATIONAL CAPITAL HOUSING AUTHORITY General and special funds: Operation and maintenance of NOA properties ________________ 555 Exp. , 37 ------------- ------------- ------------ Rental income is no longer deposited in the general fund of the 44 U.S. Treasury but remains available to the Authority for operation and maintenance of housing properties. Adjustments Applicable receipts from the public NOA 550 Exp. -39 Total, National Capital NOA Housing Authority. Exp. D Proposed for separate transmittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code .:::c6t-~-d~l__••-~•__9!-~t-e-~-•-•-~i9-~-~-tc_~l_}c_:_~~-:_~:_c_c°_..':_)I__________E_•_pl_•_n_•t-io_n_________ OTHER INDEPENDENT AGENCIES-Continued Federal Funds NATIONAL CAPITAL PLANNING COMMISSION General and special funda: Salaries and expenses _______ _555 NOA 995 nzz 995 1,073 56 Exp. 954 1,020 1,040 20 Land acquisition, John F. Ken- Exp. nedy Center for the Performing Arts ____________________ 704 52 Land acquisition, National Capital park, parkway, and playground system __________ 555 Repayments deposited in genera! fund. Subtotal. Federal funds ___ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Land acquisition has been completed.) 105 27 203 103 117 619 -86 516 LA NL -566 -201 -26 175 NOA LA Exp. NL 995 -566 1,017 -201 1,073 -26 I. 111 1,223 -98 I. 157 593 Exp. NL Increase is primarily for additional staff to prepare plans for redevelopment of Pennsylvania Avenue. (Land acquisition continues through 1969.) --~---- ------- -539 56 16 -66 691 Total Federal funds are distributed as follows: 1%8 NOA Enacted _____ Repayments_ LA 995 (D) ____ 22 NL Exp. 1,203 -201 --------- 103 -201 20 --------- 1969 NOA Transmitted_ Repayments_ (D) _____ -- 1,073 ----------------- LA --------- -26 -- - - - - - -- NL Exp. I, 155 --------- 2 619 -26 Trust Funds Contributed funds (permanent) _555 NOA Exp. --- ---- Advances from District of Columbia NOA _ ___ 555 Exp. (permanent)_____ z 100 98 80 222 100 -122 130 238 166 -72 53 311 166 -145 One-half of the cost of acquiring land for the George Washington Memorial Parkway is contributed by the States of Maryland and Virginia. Funds are received from the District of Columbia Redevelopment Land Agency for the preparation of urban renewal plans. -----~- Subtotal. trust funds________ NOA Exp. 130 240 Z66 Z6 8 133 533 266 -267 t'l iI1 >,j Adjustments t'l t) Applicable receipts from the public 550 Repayments deposited to general fund (included in details above). Total, National Capital Planning Commission. NOA Exp. } -130 LA NL l (-566) NOA LA Exp. NL -238 -166 t'l 72 ::0 > t" (-201) (-26) (/75) >ti I ::0 0 995 -566 1,019 -201 1,173 -26 1,114 -539 1,518 -98 1,257 593 154 175 -261 691 Cl Totals for the Commission are distributed as follows: ::u > /968 NOA Enacted _____ Repayments_ (D) ________ ~ LA Exp. NL 997 ---------201 --------22 --------- 1,498 103 -201 >-< Exp. NL 0 1,255 619 -26 20 NOA I I D Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LA 1,173 --------- -26 --------- --------- > Cl tzj /969 Transmitted_ Repayments_ ( D) ________ t:d z --------2 >-< Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued I e~,;c\~d I e,)?!~te Account and functional code -- - - - - - e,); !:te I icnc~::::\"..':)I Explanation 9 -~----~---------~----------------- OTHER INDEPENDENT AGENCIES-Continued -- ----- ----- - - - - - I I Federal Funds I ' 'I NATIONAL CAPITAL TRANSPORTATION AGENCY General and special funds: Salaries and expenses _______ _555 NOA Exp. 1,400 806 Construction, rail rapid transit NOA system _________________ __ 555 Exp. 9,055 2. 171 Total, National Capital NOA Transportation Agency. Exp. --- - - - - -- - -- -- - - - ---- - - - - ------------153 153 - - - - - ---- - - - - ------------ 2,022 (0n Sept. 30, 1967, functions and duties of the National Capital T ransportation Agency were transferred to the Washington Metropolitan Area Transit Authority, an interstate compact a gency.) ------------- - - - - - - - - - - - - (Unobligated balances of construction funds were transferred to -2,022 t he Department of Housing and Urban Development for - - - - - - -- - - - - payment to the Washington Metropolitan Area Transit Authority.) 10,455 2,977 1-------2.17f _____________ \---- -2, 175- NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES Salaries and expenses ________ 704 NOA 8,945 Indefinite____________________ NOA Exp. 2,089 8,998 11,200 DIS 1,000 14,400 NOA Exp. 11,034 8,998 12,215 14,400 Subtotal. Federal funds_____ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } FZ0,000 9,785 20,700 6,300 22,000 20,700 9,785 6,300 2,000 } Increase provides for grants for individuals and institutions, and for additional administrative costs. Total Federal funds are distributed as follows: • Enacted ____ _ Transmitted_ ( D) _______ _ /968 /969 NOA Exp. 12,200 14,386 - - - - - - -- - --------14 15 NOA --------22,000 --------- Exp. 20,699 1 Trust Funds Gifts and donations (permanent) NOA 704 Exp. 789 1,000 Z,000 1,000 789 i;ooo 2,000 1,000 Donations are accepted to support the purposes of the Foundation. Adjustments Applicable receipts from the public NOA 850 Exp. }- - Total, National Foundation NOA on the Arts and the Hu- Exp. manities. -/ ------------- ------- I I 11,823 13,214 24,000 10,786 9,787 15,399 22,700 7,301 Totals for the agency are distributed as follows: 1968 NOA Enacted _____ Transmitted_ (D) ________ /969 Exp. 13,199 --------- 15 15,385 --------14 NOA Exp. 24,000 22,699 1 I Federal Funds ' NATIONAL LABOR RELATIONS BOARD General and apecial funds: Salaries and expenses _______ 652 NOA Exp. 31,010 3Z,Z30 35,074 Z,844 30,197 ' I 31,900 34,729 2,829 -8 -9 -/ 3Z,ZZZ 35,065 Z,843 31,892 34,720 2,828 Additional funds needed for an estimated 5.5% increase in unfair labor practice cases and a 3.5% increase in representation cases. I Adjustments I I I Applicable receipts from the public NOA 650 Exp. Total National Labor Rela- NOA tions Board. Exp. D F -7 I} I I I I 31,003 30,190 I I Proposed for separate transmittal. civilian pay act supplemental. To carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I I Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I I 1967 enacted 1968 1969 estimate estimate 1 Explanation 1ncrease or I decrease ( - ) OTHER INDEPENDENT AGENCIES-Continued ~- -----~- Federal Funds NATIONAL MEDIATION BOARD General and special funds: Salaries and expenses _____ ___ 652 NOA Exp. Z,085 1,981 Z,150 2,084 Z,Z4Z 2,199 479,984 412,978 495,000 456,000 500,000 480,000 92 Estimate includes increased salary costs. 115 NATIONAL SCIENCE FOU NDATION Salaries and expenses _____ ___ 703 NOA Exp. 5,000 24,000 Increase is for additional basic research project grants and programs to improve the quality of science education. lntragovernmental funda: Advances and reimbursemen ts_703 Exp. 1,906 ------------- - - - - - - -- - - - - - ------------ NOA Exp. 479,984 414,884 495,000 456,000 __703 NOA Exp. 1 2 1 2 Applicable receipts from the public NOA 700 Exp. 850 NOA Exp. } -I ,/34 } -81 -I ,085 -1,085 ------------ -80 -80 ------------ Total, National Science Foun- NOA Exp. tion. 478,770 Subtotal, Federal funds - - - - - 500,000 480,000 5,000 24,000 Trust Funds Donations (permanent)_ Adjustments https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 413,671 I 493,836 454,837 1 ------------ Donations are used to further the general purposes of the Founda2 -----------tion. 498,836 478,837 5,000 24,000 Federal Funds PRESIDENT'S ADVISORY COMMITTEE ON LABOR-MANAGEMENT POLICY General and special funds: President's Advisory Committee Exp. on Labor-Management Policy 652 1 ___ . __ _____ __ ___ __________ __ ___ _______ (This Committee is now being supported by the Departments of Labor and Commerce.) RAILROAD RETIREMENT BOARD Payment for military service NOA credits_ __________________ 659 Exp. 17,201 17,201 17,839 17,839 18,446 18,446 607 (14,490) (666) (:IJ7 Provides for 5th of IO installments to pay the retirement account for military service of railroad workers. Trust Funds Limitation on salaries and expenses_ Railroad retirement account (perma- NOA nent) _____________ . ______ 654 LA Receipts appropriated: (Employment taxes) __________ ( Interest on investments) _____ (Payment from OAS! trust fund.) (Payment from Federal disability insurance trust fund.) (Payment for military service credits.) (Payment of advances to Railroad unemployment insurance account.) (Other) _____________________ (12,975) (12,850)} A (612) D (362) 1,498,728 1,639,819 114,000 ------------- 1,904,746 -114,000 The Railroad Retirement System combines social insurance and staff retirement for workers in the railroad industry. Higher tax receipts result from increases in average earnings and from (80,920) scheduled increases in wage base and rates. (9,900) (62,000) 264,927 -114,000 (794,515) (162,807) (508,046) (876,280) (180,200) (450,000) (957,200) (190,100) (512,000) (30,634) (20,000) (19,000) (-1,000) (17,201) (17,839) (18,446) (607) (90,375) (88,000) (88,000) ------------ (9.150) (7,500) (6,000) (-1,500) Proposed for separate transmittal under existing legislation, other than pay supplemental. D Proposed for separate transmittal. civilian pay act supplemental. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1968 supplemental is mainly for adjustment of benefits made necessary by 1967 amendments to the Social Security Act. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I decrease ( - ) I Explanation OTHER INDEPENDENT AGENCIES-Continued Trust Funds-Continued RAILROAD RETIREMENT BOARD-Con. Railroad retirement account (permancnt)-Continued Expenditures and net lending_654 Exp. NL (Benefit payments) ___________ (Administrative expenses) _____ (Advances for unemployment insurance). (Payment to Federal hospital insurance trust fund.) (Interest on refunds) _________ (Purchase of non-Federal secur- 1,414,261 A612 114,000 ------------- } 1,490,490 -114,000 76,841 Expenditure rises in 1968 and 1969 are due to additions to the rolls and a gradual increase in average benefits because of higher wages. Effecti ve February 1968, approximately 400,000 -114,000 beneficiaries will receive an increase in benefits under a provision which assures them at least 110% of social security benefits for the same coverage. (64,000) The number receiving monthly benefits at the end of each year (666) is as follows (in thousands): (1,257,343) (12,545) (1,328,000) (13,212) ( A612) (29,250) (29,000) (29,000) ------------ (16,305) (44,049) (55,000) (1,392,000) (14,490) (10,951) (2) ------------- ------------- -----------,.... (-114,000) (-114,000) (114,000) ------------- ities.) Subtotal, trust funds ______ 1,315,445 /967 actual Retired individuals __ Disabled ___________ Survivors ___________ Supplemental annuiti es_ /968 /969 utimate utlmale 541 540 100 32i 52 531 100 306 14 lW 316 37 .... Total trust funds are di stributed as follows: NOA LA Exp. NL 1,498,728 1,639,819 114,000 ------------1,315,445 114,000 1,414,873 ------------- 1,904,746 -114,000 264,927 -114,000 1,490,490 -114,000 75,617 -114,000 co co 0, /968 Enacted ____ (A) _______ NO A Exp. 1,639, 819 1,414,261 612 ------ /969 NO A Transmitted https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I. 904, 746 LA Exp. -114,000 1,490,49 NL -114,000 Adjustments lnterfund and intragovernmental NOA transactions ________________ 650 Exp. } -700,961 Applicable receipts from the public NOA 650 Exp. } Total, Railroad Retirement NOA Board. LA Exp. NL -656,388 -727,446 -71 ,058 -/ ------------- ----------- -----------814,967 1,001,270 114,000 ------------- 631,684 776,324 114,000 ------------- 1,195,746 -114,000 194,476 -114,000 781,490 -114,000 5,166 -114,000 Totals for the agency are distributed as follows: 1968 NOA Enacted ____ ( A) _______ Exp. 1,001,270 775.712 612 --------/969 NOA Transmitted LA I, 195.746 -114,000 NL Exp. 781,490 -114,000 Federal Funds RENEGOTIATION BOARD General and special funds: Salaries and expenses _________ 904 NOA 2,537 2,600 D76 Exp. 2,519 NOA Exp. 2,537 Total, Renegotiation Board_ 2,519 F3,080 404 2,671 3,067 396 2,676 3,080 2,671 3,067 404 } 396 Increase is for processing and review of additional renegotiation filings due to stepped-up procurement for the Vietnam conflict. Totals for the agency are distributed as follows: 1968 NOA Enacted _____ Transmitted_ ( D) ________ A D 1" Proposed for separate transmittal under existing legislation. other than pay supplemental. Proposed for separate tranamittal, civilian pay act supplemental. To carry out authorizing legislation to be proposed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1969 Exp. NOA Exp. 2,600 2,599 --------3,080 --------- --------76 72 --------- 3,063 4 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 estimate 1969 estimate Explanation 1ncrease or I 1 decrease ( - ) OTHER INDEPENDENT AGENCIES-Continued Federal Funds-Continued SECURITIES AND EXCHANGE COMMISSION General and apecial funda-Continucd Salaries and expenses ________ 508 NOA 16,721 17,350 D380 } 17,903 173 Exp. 16,681 17,770 17,829 59 Total, Federal funds ________ NOA Exp. 16,721 16,681 17,730 17,770 17,903 17,829 173 59 Activity will continue at about the sa me level as 1968. Total Federal funds are distributed as follows: /968 NOA Enacted _____ 17,350 Transmitted_ --------(D) ________ 380 Adjustments Applicable receipts from the public NOA 500 Exp. Total, Securities and Exchange NOA Commission. Exp. } -/ 16,720 16,680 -/ -/ 17,729 17,769 17,902 17,828 1969 Exp. NOA 17,4 IO --------17,903 - -- - - - 360 --------- 173 59 Totals for the agency are distributed as follows: /968 /969 Exp. NOA Enacted _____ 17,349 17, 409 Transmitted_ --------- ------17,903 (D) ________ 380 360 --------- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17,809 20 ------------ NOA ' Exp. Exp. 17,808 20 Federal Funds SELECTIVE SERVICE SYSTEM General and special funds: Salaries and expenses ________ 059 NOA 58,684 57,229 A2,805 Dl,384 El72 Subtotal, Federal funds_____ 63,568 1,978 } Exp. 58,036 58,920 A2,463 63,837 AJ42 NOA Exp. 58,684 58,036 61,590 61,383 63,568 64,179 } 2,796 1,978 2,796 1968 supplemental is to meet increased induction calls, now estimated at 303,000, to provide for improvements in the administration and operation of the system, and for higher postage rates. 1969 increase is for full-year cost of improvements initiated in 1968. Total Federal funds are distributed as follows: /968 NOA Enacted _____ Transmitted_ ( -') ________ 57,229 --------2,805 ( D) ________ 1,384 ( E) ________ 172 Adjustments Applicable receipts from the public NOA 050 Exp. Total, Selective Service Sys- NOA tern. Exp. } -5 -4 58,679 58,031 61,586 61,379 1969 Erp. 57,488 --------2,463 63,564 64,175 1,260 --------172 --------- 57,225 Erp. 57,484 ----------------2,805 2,463 ( D) ________ 1,384 1,260 ( E) ________ 172 172 A Proposed fer separate transmittal under e"Jiating legislation, other than pay • upplcmental. Proposed for separate transmittal. military pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis --------- 1,978 Totals for the agency are distributed as follows: 2,796 /968 Enacted _____ Transmitted_ (A) ________ E Erp. --------63,568 63,713 342 124 -4 ------------ NOA D Proposed for separate transmittal. civilian pay act supplemental. NOA 1969 NOA --------63,564 ------------------------- Exp. 63,709 342 124 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 estimate 1969 estimate Increase or I ( -) Explanation I decrease OTHER INDEPENDENT AGENCIES-Continuer! Federal Funds SMALL BUSINESS ADMINISTRATION General and special funds: Salaries and expenses ________ 506 NOA Exp. 11,600 I0,727 1,700 1,948 Assistance to loan applicants and borrowers will be increased through stepped-up management counseling and training programs. 689 ------------- -689 An indefinite appropriation directly to the funds concerned 1s proposed for 1969. -------485- _________ 661 - }------------ -661 Program level will increase $86 million, primarily due to expansion of regular business lending. Agency will continue to stress use of authority to guarantee loans made by private banks. 8,100 5,137 Payment of part1C1pation sales NOA insufficiencies _____________ 506 9,900 8,779 Public enterprise funds: Business loan and investment 506 fund: Appropriation _______________ _ Indefinite _________________ _ Authorization to spend debt receipts. NOA NOA LA Exp. NL 506 Disaster loan fund: Appropriation: Current, indefinite ____ _ NOA Permanent, indefinite __ NOA Authorization to spend debt LA receipts. Exp. NL Lease guarantees, revolving fund Exp. 506 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 722,103 66,815 73,930 150,000 47,351 77,727 150,000 36,431 114,296 -10,920 36,569 ...co 0) co 440 2,155 127,897 11,335 -5,730 14,266 35,960 -1, 173 --i;ii-11·} --------- - -508 9,532 -12,685 -4.734 -48,645 -4,374 -3,201 Disaster loan program level is estimated at $50 million in 1969, compared with $100 million in 1968. Stricter and more equitable eligibility criteria will be used. (In 1969. an estimated 3,000 leases will be guaranteed.) Revolving fund, Small Business Exp. Administration ... ________ .506 53 - - - - - - - - - - - - ------------- - - - - - - - - - - (The assets of this fund were allocated to the Disaster loan and Business loan and investment funds in 1967.) lntragovernmental funds: Advances and reimbursements.506 Exp. -83 ... --------- ------------- ------------ 9,026 850,000 13,405 150,000 83,257 68,200 69,223 113,687 Salaries and expenses __ ... ___ 704 NOA 22,699 23,913 c33 n439 Exp. 21,338 Museum programs and related re- NOA search (special foreign currency Exp. program) _________ ... ____ .704 2,316 Total, Small Business Ad- NOA LA ministration. Exp. NL 13,247 -158 150,000 -----------52,316 l01.611 -16,907 -12,076 27,130 2,745 24,442 25,5IO 1,068 2,316 1,959 6,000 3,684 852 4,000 2,041 Construction and improvements, NOA National Zoological Park._ .704 Exp. 1,589 400 660 260 448 272 2,550 2,278 Restoration and renovation of NOA buildings ................. 704 Exp. 2,300 1,125 1,200 75 140 1,053 3,000 1,947 SMITHSONIAN INSTITUTION General and special funds: Construction. __ _ __ 704 NOA ----------Exp. ----------- Miscellaneous appropriations_ 704 Exp. C D 2,929 803 14,197 13,394 574 1,500 926 1,060 355 -705 Proposed for separate transmittal. wage.board supplementai. Proposed for separate transmittal. civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis } Increase provides primarily for additional subprofessional and technical support for educational and scientific activities and opening of new galleries. Excess foreign currencies are granted to American institutions for archeological and biological research, excavation, and preservation. Provides mainly for replacement of the central heating plant. Provides for renovation and improvements to facilities. Provides for construction of the Joseph H. Hirshhorn Museum and Sculpture Garden. (Continues construction projects underway.) Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued I cs!?~~tc c~::t~d Account and functional code cs!?~!te IJc:~:::~c (~)I Explanation ----------------~---~----~----~----~--------------------- OTHER INDEPENDENT AGENCIES-Continued Federal F unds-Continued SMITHSON IAN INSTITUTION-Con. General and apecial funds-Continued Salaries an d expenses, National NOA Gallery of Art__ ___________ 704 Exp. John F. Ke nnedy Center for the Exp. Performin g Arts ___________ 704 Z,8ZZ 3,054 2,745 D49 3,099 3,291 188 3,269 170 1,787 8,000 11,000 3,000 7 12 14 2 31,726 32,132 SZ,478 Z0,346 30,247 40,471 51,198 10,727 } Increase provides mainly for electronic protection of art object s, additional pay costs, and workload requirements. (Construction of the Center is in progress.) lntragovernm ental funds: Advances and reimbursements, Exp. Smithson ian Institution ____ 704 Subtota 1, Federal funds ___ NOA Exp. Total Federal funds are distributed as follows: /968 Enacted _____ Transmitted_ ( C) ________ (D) ________ Trust Fu nds Smithsonian I nstitution trust funds NOA (permanent ) __ ----- _________ 704 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Z,lZZ Z,378 Z,647 269 1,970 2,344 2,634 290 NOA 31.611 1969 Exp. NOA Exp. 39,982 --------- ------52,478 51. 166 --------- --------31 --------33 2 488 458 --------30 The District of Columbia advances funds for operation of th e National Zoological Park. Adjustments Applicable receipts from the public NOA 700 Exp. Total.Smithsonian Institution NOA Exp. } -2,048 -2,299 -2,522 -223 31,800 30,169 3Z,211 40,516 SZ,603 51,3IO Z0,39Z I0,794 Totals for the agency are distributed as follows: /968 Enacted _____ Transmitted_ NOA /969 Exp. NOA Exp. 31,690 40,027 --------52,603 ----------------( C) ________ 33 31 --------(D) ________ 488 458 --------- 51,278 2 30 Federal Funds SUBVERSIVE ACTIVITIES CONTROL BOARD General and apecial funda: Salaries and expenses ________ 908 NOA Z90 Z95 4ZS 117 Exp. 330 379 400 21 Total, Subversive Activities NOA Control Board. Exp. 290 330 308 379 425 400 117 DJ3 } 21 Increase will permit implementation of legislation enacted on Dec. 14, 1967. Totals for the agency are distributed as follows: 1968 Enacted _____ Transmitted_ (D) ________ C Proposed for separate transmittal. wage-board supplemental. D Proposed for separate tran1mittal, civilian pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOA /969 Exp. NOA Exp. --------425 -----400 --------- --------13 13 --------295 366 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted I 1968 estimate I 1969 estimate Increase or decrease ( -) I Explanation OTHER INDEPENDENT AGENCIES-Continued Federal Funds-Continue d TARIFF COMMISSION General and special funda-Continu cd Salaries and expenses ________ 151 Total, Tariff Commission __ N OA 3,562 Exp. 3,675 0 79 3,860 106 3,400 3,847 3,862 15 NOA Exp. 3,562 3,400 3,754 3,860 106 3,847 3,862 15 } Estimate provides for salary and other personnel cost increases Totals for the agency are distributed as follows: /968 Enacted _____ Transmitted_ (D) ________ NOA 3,675 /969 Exp, 3,772 --------- --------79 75 NOA Exp. --------- ------3,680 3,858 --------- 4 TAX COURT OF THE UNITED STATES Salaries and expenses ________ 904 N OA Exp. 2,355 2,407 2,477 2,172 2,335 2,476 70 141 Estimate is for full-year cost of the salary increase. Trust Funds Tax court judges survivors annuity N OA fund (permanent) ___________ 904 E xp. Total, Tax Court of the NOA Exp. United States. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 33 31 11 20 2,388 2,183 Z,4381 2,355 31 ------------ Judges pay 3% and the Government pays the remainder t 0 20 Z,5081 2,496 -----------70 141 finance survivors annuity system. Federal Funds TEMPORARY STUDY COMMISSIONS General and special funds: Atlantic-Pacific lnteroceanic Canal Study Commission: Salaries and expenses ______ 502 NOA Reappropriation ___________ _ NOA Exp. Commission on Obscenity and NOA Pornography: Salaries and ex- Exp. penses ___________________ 903 4,ooo l 6,100 F4,900 -1,ZOO 5,345 7,172 5,600 -1.572 Z,725 I I-=-==_=_==_=_==_==-:---~-i_~~-1-----J-~_IL__ Commission on the Political Ac- NOA tivity of Government Personnel: Exp. Salaries and expenses ______ 906 Joint Commission on the Coinage: NOA Salaries and expenses ______ 904 Exp. - -- - - National Advisory Commission on NOA Food and Fiber: Expenses __ 3,S Exp. -ZS 47 153 -153 -~~~ - ---- - - - --183-1-- - - - - - - - -17 - -- ----::..: 166458 1751------- ----- - 307 -230 53 _____________ -53 Proposed for separate transmittal under existing legislation, other than pay supplemental. Proposed for separate transmittal, civilian pay act supplemental. FTo carry out authorizing legislation to be proposed. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -175 230 ------------- National Commission on Product NOA Safety: Salaries and expenses_903 Exp. D m ZS 1------: National Commission on Food Exp. Marketing: Salaries and expenses __________________ _3,S This Commission will recommend to the President means of dealing with traffic in obscenity. The requested supplemental is to begin operations. 175 475 Decrease reflects reduced onsite activities in Panama and Colom• bia. The Commission expired Dec. 31, 1967. (Established in 1967 to consider those matters relevant to the maintenance of an adequate and stable coinage system.) The Commission submitted its report to the President in July 1967. (The Commission completed its study and reported to the President and the Congress on June 27, 1966. Expenditures in 1967 and 1968 are for administrative expenses.) Requested supplemental will fund the Commission until its expiration in February 1970. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate I Increase or decrease ( -) I Explanation OTHER INDEPENDENT AGENCIES-Continued Federal Funds-Continue d TEMPORARY STUDY COMMISSIO NSContinud General and special funda-Continu ed National Commission on Reform NOA of Federal Criminal Laws: Salaries and expenses ______ 908 Exp. National Commission on Tech- Exp. nology, Automation, and Economic Progress: Salaries and 50 ----------112 150 A50 185 A.45 } 250 265 A5 47 ------------- 50 } 40 -47 Supplemental is for analyses required in 1968 if the reportin g deadline of Nov. 8, 1969, is to be met. The 1969 estimat e provides for the remaining expenses of the Commission. (The Commission has submitted its final report to the Presiden and Congress.) expenses _________________ 652 National Visitor Center Study NOA Commission ___________ ___ 555 Exp. President's Commissions on Law NOA Enforcement and the Adminis- Exp. tration of Justice and on Crime in the District of Columbia: Salaries and expenses ______ 908 10 ------------- ------------- ------------ (The Commission submitted its report in September 1967.) ----------550 790 10 ------------- -10 ------------- ------------ (These Commissions completed their work in 1967.) 33 -------------33 ------------- lntragovernmental funds: Advances and reimbursements Exp. 908 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 - - - - - - - - - - - -- - - - - -- --- - - - - ------------ General and special funds: Public Land Law Review Com- NOA mission: Salaries and expenses Exp. 860 3,060 944 -2,116 671 2,200 2,530 330 Decrease is due to the completion of funding of the Commission's contract study program. 401 800 Select Commission on Western NOA Hemisphere Immigration: Sal- Exp. aries and expenses _________ 908 91 ------------- ------------- 9,845 Total, temporary study com- NOA missions. Exp. 7,825 189 ------------- II, 710 10,693 ------------ -189 6,737 -4,973 9,922 -771 (Commission completed its studies Jan. 15, 1968.) Totals for the temporary study commissions are distributed as follows: 1968 NOA Enacted _____ Transmitted_ ( A) ________ I /969 Exp. NOA 9,510 10,455 --------6,737 --------- --------2,200 238 --------- Exp. 8,772 1,150 TENNESSEE VALLEY AUTHORITY Public enterprise funds: Tennersee Va!ley Autbrity fund: Power proceeds and borrowings NOA (authorization to spend debt Exp. receipts) _______________ 401 1,000,000 38,986 Appropriations and nonpower NOA proceeds ______________ 401 Exp. Subtotal, Federal funds _____ NOA Exp. ------------- ------------- -----------45,500 91,500 46,000 63,700 61,000 50,250 -10,750 63,079 63,200 58,500 -4,700 1,063,700 61,000 50,250 -10,750 102,065 108,700 150,000 41,300 -62 -67 -74 -7 60,933 50,1761 149,926 Adjustments Applicable receipts from the public NOA 400 Exp. Total, Tennessee Valley Au- NOA thority. Exp. A } 1,063,6381 102,003 108,633 -10, 757 41,293 Proposed for separate transmittal under existing legislation, other than pay supplemental, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Power revenue and receipts of $410 million, together with a net of $170 million of borrowing, will be used to finance the power program.) The net decrease generally results from lower requirements for projects nearing completion. Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands .,f dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate I Increase or decrease ( -) I Explanation OTHER INDEPENDENT AGENCIES-Continued -----------------------------------------------~----------~ ------- Federal Funds UNITED STATES INFORMATION AGENCY General and special funds: Salaries and expenses ________ 153 NOA Exp. 152,166 156,430 163,654 7,224 147,570 153,907 162,202 8,295 Salaries and expenses (special NOA foreign currency program) __ 153 Exp. 10,941 8,604 9,340 736 10,021 9,855 10,662 807 Special international exhibitions NOA 153 Exp. 2,709 2,709 All,307 5,466 -8,550 10,424 4,672 4,280 1,568 1. 176 A Special international exhibitions NOA (special foreign currency pro- Exp. gram) ____________________ 153 Acquisition and construction of NOA radio facilities _____________ 153 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 350 387 428 41 468 363 516 153 6,510 16,531 18,200 ------------18,700 14,858 -18,200 -3,842 Funds are provided for nondiscretionary wage and salary increases and selective overseas program increases. Foreign currencies excess to U.S. needs supplement the appropriation immediately above and are used to pay local expenses. The 1968 supplemental will fund U.S. participation in the 1970 Osaka World's Fair. Increase in 1969 is for completion of 5th series exchange with Soviet Union. Foreign currencies excess to U.S. needs supplement the appropriation immediately above and are used to pay local expenses. Decrease is due to nonrecurrence of funding for new transmitting facility in Greece. Public enterpriae funda: Informational media guarantee Exp. fund _____________________ l53 Subtotal, Federal funds_____ NOA Exp. 300 -180 -86 94 172,676 185,314 197,637 187,317 178,888 194,000 -18,749 6,683 (The program is being phased out.) Total Federal funds are distributed as follows: /968 NOA Enacted _____ Transmitted_ ( A) ________ /969 Exp. 186,330 187,317 --------11,307 ----------------- NOA Exp. --------178,888 --------- 192,432 1,568 Trust Funds United States Information Agency NOA trust funds (permanent) _____ 153 Exp. 172 130 64 90 -669 -371 172,179 184,775 197,330 187,036 62 80 -2 The decrease is due to lower contributions from private sources for distribution of donated books. -10 Adjustments Applicable receipts from the public NOA 150 Exp. Total, United States lnforma- NOA tion Agency. Exp. } -371 -----------178,579 193,709 -18,751 6,673 Totals for the agency are distributed as follows: /968 NOA Enacted _____ Transmitted_ ( A) ________ A Proposed for separate trans mitt al under existing legislation, other than pay supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 186,023 1969 Exp. NOA Exp, 187,036 ----------------- 178,579 --------11,307 --------- --------- 192,141 1,568 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code I 1967 enacted 1968 1969 estimate tstimate I Increase or decrease ( - ) I Explanation OTHER INDEPENDENT AGENCIES-Continued Federal Funds WATER RESOURCES COUNCIL Gene-ral and special funda: Water resources planning _____ 401 NOA Exp. 600 323 1,070 1,031 Financial assistance to States __ 40 I NOA Exp. 1,875 Subtotal, Federal funds ______ NOA Exp. 2,475 1,281 211 250 Provides for 2 new commissions for a half year. 1,281 2,470 2,397 2,735 265 2,685 288 Provides for an increase in grants to States for water resources planning. 3,540 3,428 3,966 538 20 795 1,490 695 I 693 1,450 757 -397 -745 -348 -745 -347 4,016 476 600 1,648 1,971 KK 4,016 476 Trust Funds River basin commissions (perma- NOA nent) ______________________ 401 Exp. Adjustments .... lnterfund and intragovernme~ tal NOA transactions ________________ 400 Exp. } -/0 Applicable receipts from the public NOA 400 Exp. } -/0 -398 2,475 3,540 3,326 Total, Water Council. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Provides for increase in contributions to new commissions. Resources NOA Exp. 1,952 I 3,926 co O> co summary Total, Federal funds ____ -_________ NOA LA Exp. NL Z,3Z3,1Zl 1,719,846 1,026,213 687,645 1,364,047 1,130,476 914,666 837,829 1,473,240 898,690 1,065, IOI 821,719 109,193 -231,786 150,435 -16, IIO Total Federal funds are distributed as follows: 1968 NOA LA Ex1>, Enacted ____ _ 1,336,241 I, 133,806 901,099 -3,330 -··------Repayments_ --------( A ) _______ _ 22,869 --------8,983 (C ) _______ _ 33 --------31 ) _______ _ (D 4,732 --------4,381 (E ) _______ _ 172 --------172 NL 841,159 -3,330 /969 NOA LA Ex1>. 902,185 1,039,238 Tra nsmitted_ 1,443,040 -3,495 --------Repayments_ --------(A ) _______ _ 3,310 --------- --------) _______ _ ( B 30,200 --------22,200 ( C ) _______ _ --------2 --------(D ) _______ _ --------- --------351 Total, trust funds _______________ - NOA LA Exp. NL 4,482,405 416,594 2,967,985 899,100 5,085,833 484,514 3,351,547 749,000 5,662,848 312,596 3,449,901 543,100 577,015 -171,918 98,354 -205,900 NL 8I0,214 -3,495 15,000 Total trust funds are distributed as follows: /968 NOA LA Ex1>, 484,514 3,350,935 En acted_____ 5,085,833 ( A ) ________ --------- --------612 NL 749,000 1969 NOA Transmitted_ 5,662,848 Proposed for separate Proposed for separate Proposed for separate DProposed for separate E Proposed for separate KK Includes $11 thousand A B C https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis transmittal transmittal transmittal. transmittal, transmittal. to carry out under existing legislation, other than pay supplemental. under proposed legislation. wage-board supplemental. civilian pay act supplemental. military pay act supplemental. authorizing legislation to be proposed. LA Ex1>, 312,596 3,449,901 NL 543,100 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate I Increase or decrease ( -) I OTHER INDEPENDENT AGENCIES-Continued Adjustments: lnterfund and intragovernmental NOA transactions______________ 150 Exp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 350 NOA Exp. 400 NOA Exp. 500 NOA Ei,:p. }---------- ------------- -10,000 -/0,000 } -4, 490 -4, 772 -6, 300 -1,528 -/0 -397 -745 -348 -728 -8/6 -88 -657,448 -728,536 -71,088 } }---------- 650 NOA }-702, 027 Exp. 900 NOA Exp. } -2 -/ -/ ------------ Explanation Applicable receipts from the public NOA 050 Exp. } -5 -4 -4 ------------ 150 NOA } -669 -37/ -371 ------------ 400 NOA } -85 -m -83/ -354 Exp. 500 NOA } -324 -274 -990 -716 Exp. ~t_,j 550 NOA } -/69 -238 -/66 72 Exp. >tj t_,j 650 NOA } -8 Exp. t; t_,j Exp. -8 -3,384 -9 -3,607 700 NOA Exp. } -3, /82 800 NOA } -I Exp. 850 NOA } -8/ -8/ -80 Exp. 900 NOA Exp. } -27 -/ -/ -I ::0 -223 "d ::0 I 0 ::0 ~ 0 -I ------------- > ~ I l:d -4 > ------------ 0 t_,j z0 -4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 1969 estimate estimate Increase or I (- ) I decrease Explanation OTHER INDEPENDENT AGENCIES-Continued Adjustments-Continued Repayments deposited in general LA fund (included in details above)_ NL Total, other agencies. independent NOA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LA Exp. NL } (-3, 495) 6,094,446 2,136,440 3,283,118 1,586,745 (-3, 330) (-3, 495) (-165) 5,781,695 1,614,990 3,598,028 1,586,829 6,383,631 1,211,286 3,762,545 1,364,819 601,936 -403,704 164,517 -222,010 Totals for other independent agencies are distribu ted as follows: 1968 NOA Enacted ____ Repayments (A) _______ ( C) _______ ( D) _______ ( E) _______ Erp. LA NL 5,753,889 1,618,320 3,583,849 1,590,159 -3,330 -3,330 --------------9,595 --------22,869 --------31 33 --------4, 381 4,732 --------I72 172 --------1969 NOA LA Erp. NL 6,353,431 1,214,781 3,736, 682 1,353,314 -3,495 -3,495 --------------3,3 10 ------------------------22,2 00 15,000 30,200 --------( C) _______ 2 ----------------(D) _______ --------351 --------- Transmitted Repayments (A) _______ (B) _______ ....co O> co SPECIAL ALLOWANCES --------------------~ Allowances for: Civilian and military pay increase_ NOA ------------ -----------Exp. ------------ - - - - - -- -- - -- Contingencies ____________ - ___ - _ NOA -----------Exp. ------------ 150,000 100,000 Total, special allowances ____ NOA -----------Exp. --- -- - -- - - -- 150,000 100,000 I 1,600,000 1,600,000 1,600,000 1,600,000 Estim ate is for the cost of the salary increase to become effective int 969. Amounts required to meet the costs of the salary increase, effective in 1968, are contained in the totals for each department and agency. 550,000 350,000 400,000 250,000 The allowances for contingencies covers unforeseen needs and sma lier items of proposed legislation. Specific supplemental estimates will be transmitted as the need arises. Z,150,000 1,950,000 I Z,000,000 1,850,000 -- GRAND TOTALS Federal funds ____________________ NOA LA Exp. NL A B C D E 138,187,879 5,738,039 127,527,353 2,913,818 141,687,311 6,099,Z7Z 139,675,790 2,968,199 154,71 Z,538 4,563,616 148,9~9.441 2,498,316 13,0Z5,ZZ7 -1,535,656 9,313,651 -469,883 Proposed for separate transmittal under existing legislation, other than pay supplemental. Proposed for separate transmittal under proposed legislation. Proposed for separate transmittal. wage-board supplemental. Proposed for separate transmittal, civilian pay act supplemental. Proposed for separate transmittal, military pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Total Federal funds are distributed as follows: /968 NOA LA Exp. NL Enacted ___ _ 138,5I0,972 6,348,024 136,841.066 3,216,951 Repayments ---------- -248,752 ---------- -248,752 Allowances_ 150,000 100,000 (A) ______ _ 1,863,635 1,723,063 (B) ______ _ 83,871 -34,539 (C ) ______ _ 9,918 9,280 (D) ______ _ 462,037 434,052 606,828 602,868 ( E) --- ---- Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted I 1968 estimate I 1969 estimate 1 Explanation 1 ncrease or I decrease ( - ) GRAND TOT ALS--Continued >-3 ~ /969 NOA LA E xp. NL Transmitted 151,625,066 4,806,950 146,679,418 2,726,650 Repayments ---------- -243,334 - -- - -243,334 2,150,000 - - ----- - 1,950,000 Allowances_ (") _______ 538 --------120.532 (B) _______ 936,934 --------206,859 15,000 ( C) _______ 638 (D) _______ ---------- --------28,034 ( E) _______ ---------- --------3,960 ---------- - ------- Trust funds _____________________ NOA LA Exp. NL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45,058,959 4,879,486 49,234,046 1,074,569 55,007,041 54,846 5,772,995 -1,019,723 37,013.519 2,261,859 41,776,115 2,810,693 46,422,023 767,169 4,645,908 -2.043,524 Total trust funds are distributed as follows: LA NL 41,2 31.581 2,810,693 488,257 44,539 132 11,606 /969 NOA Transmitted 54,958,041 ( A) _______ ( B) _______ ---------49,000 ( C) _______ ---------D ( ) _______ ---------- LA 54,846 ------- - ------------------------- t:::i 0 t'l >-3 ~ 0 ::d ....~ rfJ Exp. Enacted ____ 49,083,467 1.074.569 ( A) - - - - - - - ---------- --------( B) _______ 150,389 --------( C) _______ 140 --------(D) _______ 50 --------- to d (":l /968 NOA t'l E xp. NL 46,3 74.036 1,348 45,000 8 1.631 767,169 > t"' ><1 t'l > ::d .... '° '° 0, Adjustments: lnterfund and intragovernmental transactions: Applied by agency above ______ NOA Exp. Government contributions for NOA employee retirement _____ 950 Exp. Interest received by trust funds_ NOA 950 Exp. Applicable receipts from the public: Applied by agency above _____ NOA Exp. Interest received by trust NOA funds __________________ 950 Exp. Repayments deposited in general LA fund (included in details above)_ NL Grand total________________ A B C D E Proposed Proposed Proposed Proposed Proposed NOA LA Exp. NL }-2,586.I /9 -2,863,908 -3,2/6,811 -352,903 }-1.734,8/2 -/,9/2,572 -2,006,558 -93,986 }-2,268,3/7 -2,638,975 -3,016,919 -377,944 }-4,695,16/ -4,/42,068 -4,349,762 -207,694 -18,257 -38,702 -24,845 13,857 } ( -234,968) (-248,752) (-243,334) (5,418) 171,944,174 179,325,131 10,617,525 7,173,841 153,238,208 169,855,679 5,175,677 5,778,892 197,104,684 4,618,462 182,796,569 3,265,485 17,779,553 -2,555,379 12,940,890 -2.513,407 } for separate transmittal under existing legislation, other than pay supplemental. for separate transmittal under proposed legislation. for separate transmittal, wage-board supplemental. for separate transmittal, civilian pay act supplemental. for separate transmittal, military pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Totals are distributed as follows: 1968 NOA LA Exp. NL Enacted ___ _ 175,998,213 7,422,593 166,476,420 6,027,644 Repayments ---------- -248,752 ---------- -248,752 Allowances_ 150,000 100,000 ( A) ______ _ 1,863,635 2,211,320 (B) ______ _ 234,260 10,000 (C ) ______ _ 10,058 9,412 (D ) ______ _ 462,137 445,658 (E ) ______ _ 606,828 602,868 Table 14. ANALYSIS OF BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in thousands of dollars)-Continued Account and functional code 1967 enacted 1968 1969 estimate estimate Increase or I ( -) I decrease Explanation GRAND TOTALS-Continued /969 NOA LA Exp. NL Transmitted 193,968,212 4,861,796 180,438,558 3,493,81 9 Repayments ---------- -243,334 ---------- -243,334 Allowances_ 2,150,000 ----- --- - 1,950,000 ----- - --(A) _______ 538 121,880 ( B ) _______ (C ) _______ (D ) _______ (E) _______ A B C D E Proposed Proposed Proposed Proposed Proposed for separate transmittal under existing legislation, other than pay supplemental. for acparate transmittal under pro posed legislation. for aeparate tranamittal, wage-board aupplcmental. for separate transmittal, civilian pay act aupplcmental. for separate transmittal. military pay act supplemental. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -------------------------- ------------------ ------------------ --------985,934 251,859 646 29,666 3,960 --------15,000 ------------------------- PART 6 SPECIAL ANALYSES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 463 SPECIAL ANALYSIS A COMPARISON OF NEW AND OLD BUDGET CONCEPTS This analysis provides a comparison of the budget totals under the new concept used in this budget with two older concepts used heretofore. 1 It also presents, as a transitional matter, a full table based upon the old concept of the "administrative budget." It continues the presentation of a gross table on the flow of funds, as a supplementary measure of Federal financial data. THE NEw CONCEPT OF THE BUDGET In this budget, a unified comprehensive summary budget statement is utilized to present the total financial plan for the Government, along the lines recommended by the President's Commission on Budget Concepts in its report of October 10, 1967. The basic principles are that the budget encompasses all programs of the Federal Government and its agencies, with the outlay and deficit divided between the expenditure account and loan account, and with proprietary receipts offset against outlays, regardless of the funding structure at any particular time. Payments between funds are eliminated from the totals, as is conventional in statements that consolidate data for a number of funds. These principles are explained on pages 48 to 50 of this document. The financial plan also includes appropriate attention to congressional action on the budget, a comprehensive statement of the Federal debt with a distinction between that which is internal and that which is held by the public, and a redefinition of participation certificates in loans to be a part of the debt rather than a sale of assets. Two of the fundamental recommendations of the Commission could not be adopted in this budget because, as the Commission report indicates, more time is required to provide an appropriate accounting basis for the data. These relate to the use of the accrual basis, instead of the cash basis, for the presentation of receipts and expenditures, and the identification of subsidies on loans (including the capitalization of the interest subsidies at the time the loan is disbursed). OLD MEASURES OF THE BUDGET The administrative budget.-While the budget documents have for many years covered all of the types of funds administered by the Government, certain funds were totaled separately from others to form the "administrative budget." This administrative budget covered receipts and expenditures of the Federal funds-that is, funds owned by the Government. It excluded funds held in trust by- the Federal Government. In the case of public enterprise funds, mtralTranaactiona in the Federal sector of the national income and product accounts, another measure of Government 6nance1, are ■ et forth and explained in Special Analy11i1 B. 464 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSES 465 governmental funds, and reimbursements which by law are mingled with appropriations, the administrative budget offset receipts agamst expenditures; otherwise, it presented receipts and expenditures gross, except for refunds. While the administrative budget was not coextensive with either the finances requiring annual action or the expenditures subject to legislative and administrative control, it was often the focus of attention as the principal financial plan for the Government. Actually, it always included a number of appropriations and funds in which money becomes available each year without new action by the executive or legislative branches, the most important heing interest on the public debt. Similarly, it excluded a few items on which annual action is required, but which are in the nature of trust funds. Consolidated cash statement.-The consolidated cash statement sought to reflect the transactions between the Government and the public. It was "consolidated" in the sense that it included both Federal funds and the trust funds. It was "cash" in the sense that its totals were basically on a checks-paid basis, as distinguished from the checks-issued basis used in the administrative budget. Since the trust funds, particularly those derived from taxes and social insurance premiums, have become of greater importance, the consolidated cash statement took on a greater significance in the presentation of Federal finances, and in permitting analysis of the relationship between Federal finances and the remainder of the economy. This statement followed the same rules as the administrative budget with respect to grossing and netting; most trust funds were reported gross, but a few, designated as trust revolving funds, were included on the basis of the net excess of expenditures over receipts. The consolidated cash statement also included among Government-sponsored enterprises two privately owned groups-the Federal home loan banks and the Federal land banks-which at one time were mixed ownership in nature. ELEMENTS OF DIFFERENCE Table A-1 presents "bridges" between the measures of receipts and expenditures used in this budget and the older measures of the administrative budget and the consolidated cash statement. Table A-2 makes a similar presentation for the measures of borrowing and other financing presented in this budget, as compared with the changes in the net borrowing by Federal funds, related to the administrative budget, and the net borrowing from the public, related to the consolidated cash statement. 300-000 0-68-30 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 466 THE BUDGET FOR FISCAL YEAR 1969 Table A-1. RELATION OF BUDGET TOTALS TO OLDER MEASURES (In billions of dollars) Reconciliation to administrative budget Description 1967 _________________ I 1968 _a_ct_u_a_l ~~imate 1 Reconciliation to consolidated cash 1969 1967 estimate actual 1968 1969 estimate estimate RECEIPTS Unified, comprehensive budget totals_____ Additions or deductions ( - ) , differences in: 149. 6 155.8 178.1 149.6 155.8 178.1 Coverage (adjusted for intragovernmentals 1): Trust funds__ ______________________ -37.0 -38.9 -43.9 ______________________ _ D.C. municipal funds_______________ ________ ________ ________ .3 .4 .4 Grossing of proprietary receipts: To be continued in fund structure ___ _ 2.8 2.1 2.0 4.5 4.1 4.2 Proposed for netting in new funds ___ _ .4 .4 -------- -------I nterfund and intragovernmental transactions: -1.4 -1.3 -1.4 -1.2 -1.3 Employee payments for retirement_ __ - 1 . 2 Employer payments of Government for social security _______________ _ .6 .5 .6 .5 .5 .5 Social security annuitants' payments for supplementary medical msurance ___________________________________________________ _ -.8 -.5 -.6 * * Definition of receipts: Seigniorage______ .8 Total, receipts under older concepts_ 115. 9 .4 118.6 135.6 ~ * 158. 9 181.1 158 .4 175.6 186.1 158.4 175.6 186.1 -35.1 -36.6 .2 OUTLAYS (FORMERLY EXPENDITURES) Unified, comprehensive budget totals_____ Additions or deductions ( - ) , differences in: Coverage (adjusted for intragovernmentals 1): Trust funds ________________________ -30.9 D.C. municipal funds_______________ Privately owned institutions_________ - .1 Grossing of proprietary receipts: 2.8 To be continued in fund structure ___ _ .4 Proposed for netting in new funds ___ _ Interfund and intragovernmental transactions _______ • ___________________ _ -.7 Timing: Debt issued in lieu of checks: International lending agencies______ -.2 Other program payments __________ -------Interest_ ________________________ - - - - - - - Other interest accruals, checks outstanding, and clearing accounts ____ ----- - - Deposit fund liabilities _____________ _ Definition of cash, monetary assets_____ - .6 Definition of borrowing: Sales of participation certificates, net__ - 3 •5 Increase in balances held for buyers of .1 participation certificates _________ _ Sales of Defense family housing mortgages, net_ ______________________._1 Totals, outlays under older concepts_ - -- -- - - .I 2.1 -.8 2.0 -.8 -------- --------------- -------- - -- - - - - - -- - - - - - - - - - - - - - - -- - --- * .3 -3.9 4.5 .4 -1.2 * - .7 .7 - •4 - .7 -I.I .I -4.7 -3.1 -2.6 .3 * * .3 1.6 .4 2.8 4.1 4.2 -------- ------- -1.4 * -1.6 * - .6 - .6 -.4 -.4 -3.4 -2.3 .3 -------- -------- ------- _ _._1 _ _._1 _ _._I _ _._1 _ _ .1 125. 7 137.2 147.4 155.1 176.0 188.7 *Less than $50 million. 1 The adjustments for coverage take account of the change in the intragovernmental transactions caused by inclusion or exclusion of funds which have transactions with the Federal funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSES 467 Significant differences are as follows: Coverage.-Trust funds must be subtracted from the new budget totals in moving toward the administrative budget concept. The District of Columbia municipal funds, and certain transactions of Government sponsored, but privately owned corporations (Federal land banks and Federal home loan banks), for which the U.S. Treasurer acts as fiscal agent, must be added to the new budget to move toward the consolidated cash statement. Grossing of proprietary receipts from the public.-The new budget offsets against expenditures the proprietary receipts from the public, both in the Federal funds and the trust funds, regardless of fund structure. The older budget concepts permitted such offsets only in accordance with the fund structure-that is, when the receipts are deposited in public enterprise funds, trust revolving funds, etc. The proposals to create new public enterprise funds such as for the Rural Electrification Administration and the power marketing agencies of the Department of the Interior, have no effect on the totals under the new concept; under both of the older concepts, however, the adoption of such proposed le~islation would reduce the receipts and expenditures from the levels which would otherwise prevail. lnterfund and intragovernmental transactions.-Vnder each concept, payments between funds covered by that concept are netted out to avoid duplication. However, there are differences in the application of this principle. The Government's payments into the social security trust funds, representing its contributions as employer of military personnel and covered civilian personnel, are treated as an intragovernmental transaction in the new budget, just as the Government's payments into the civil service and foreign service retirement and disability funds are treated there and in the consolidated cash statement. On the other hand, the new budget does not treat as an intragovernmental payment the employee's share of retirement or social security, which is collected by payroll deductions. Nor does the new budget treat as an intragovernmental transaction the monthly payments for supplementary medical insurance which are collected from social security or other annuitants through deductions from their annuity checks. The older consolidated cash statement had given intragovernmental treatment to such deductions. The new concept does not diminish the recorded expenditures in payment of earnings or annuities because of the payroll deduction method of making collection from the payees. Timing.-The new budget follows closely the checks-issued principle of the conventional accounts, and therefore differs from the old administrative budget only in one minor regard with respect to timing. In accordance with the recommendations of the President's Commission on Budget Concepts, payments to international lending organizations are recognized in the new budget only when the cash is actually paid out, whereas the administrative budget recognized the expenditure at the time that the public debt fi~ures were increased through the issuance of notes to these organizations. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 468 THE BUDGET FOR FISCAL YEAR 19 6 9 Table A-2. RELATION OF FINANCING TOTALS TO OLDER MEASURES (In billions of dollars) Reconciliation to administrative budget Reconciliation to consolidated cash Description 1967 1968 1969 1967 actual estimate estimate actual 1968 1969 estimate estimate --------------!---- --- --------- --FINANCING Unified comprehensive budget deficit_____ 8. 8 19. 8 8. 0 Additions of deductions ( - ) to borrowing, differences in: Coverage: 6.5 4.3 7.1 Trust funds________________________ Borrowings from D.C. government_ _________________________ _ Privately owned institutions_________ - •I •I Timing_____________________________ -.2 _______________ _ Definition of cash, monetary assets_____ - .3 - .4 - •7 Definitionofborrowing_______________ -3.4 -4.6 -3.0 Net change in borrowing _________ _ 2.5 -.7 3.5 8.8 19.8 -.6 * * * -3.9 I. 6 -.6 -.6 . 5 --------2.5 -3.3 -7.4 -2.3 8.0 * 2.8* -.6 ------- -2.2 .I Additions or deductions ( - ) to other financing, differences in: Coverage: Trust funds________________________ -. 4 -. 4 •2 .7 * * Other_____________________________ ________ ________ ________ •I * * Timing______________________________________________________ -. 4 -. 4 -. 4 Definition of cash, monetary assets_____ -. 3 ________ ________ -. 3 ______________ _ Definition of borrowing_______________ •I •3 . 3 ______________________ _ -. 8 -. 4 -. 2 * * * Definition of receipts_________________ Net change in other financing ______ I - I. 4 -. 5 .3 .I -. 4 -. 4 --------------- --- Deficit under older concepts _______ ~ 18.6 --1,-.8- --1-.5-17.217], *Less than $50 million. Several adjustments are necessary, however, to move from the new budget toward the old consolidated cash statement, since the latter was on a checks-paid basis. The exclusion of deposit funds from the coverage of the new budget is a reconciling item; the exclusion is made because deposit funds generally represent a timing adjustment with respect to transactions of other funds; the most common uses of deposit funds are to account temporarily for receipts before they are earned, and to account temporarily for certain expenditures after the check in payment of the liability has been drawn but pending final settlement. Such funds are also used to account for moneys deposited with the Government as banker. Definition of cash and monetary assets.-The United States drawing rights in the International Monetary Fund (which represent a part of the Government's equity in the fund) are now treated like cash. Hence, the exercise of those drawing rights, under which cash is moved from the IMF to the U.S. Treasury, no longer affects receipts, expenditures, borrowing, or redemption of borrowing. Also, the exchange of notes for cash in connection with subscriptions to the IMF do not affect the new budget totals. In the older concepts, certain transactions with the IMF affected the totals. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 469 SPECIAL ANALYSES Definition of receipts.-Seigniorage, representing the difference between the face value and the intrinsic value of coins manufactured, increases the Goverment's cash without an increase in liabilities and has therefore been a receipt in the administrative budget. It has been excluded from the consolidated cash statement of receipts because it did not come from the public. The new budget similarly excludes seigniorage. Definition of borrowing.-Both of the older concepts treated the sale of certificates of participation in loans as the sale of an asset, and therefore as a receipt offsetting expenditures in the public enterprise funds concerned. However, the portion of the loan repayments received by the Government and retained for the certificate holders until maturing of the certificates was accounted for in a trust fund. On recommendations of the President's Commission, such sales are now treated as borrowing. Under these circumstances, the repayments on loans collected by the Government are appropriately deposited into Federal funds. The new budget also treats Defense family housing mortgages as a form of borrowing. Borrowing.-Several of the factors named above also affect the figures on borrowing. The reconciliation of debt oustanding under the three concepts is as follows (in billions of dollars): 1967 1968 actual ulimate 1969 ulimatc Public debt issued by the Treasury ______________________________ 326,221 347,031 358,908 Agency debt issued by authorized agencies (TVA, FHA, etc.), other than participation certificates and trust fund issuances ___________ I, 333 910 1.099 Portion of above debt held by Federal funds ( - ) 1 _________________ -2. 736 -3,637 -4,270 Total net debt outstanding, administrative budget concept_ ___ 324,394 344,493 355,971 Participation certificates issued to public_________________________ 6, 119 9, 504 11, 737 Defense family housing mortgages outstanding_ ___________________ 2, 034 I. 954 1, 871 Agency debt issued by trust funds to public_______________________ 7,821 10,617 12,033 Public and agency debt held by trust funds ( - ) 1 __________________ -67, 881 -73, 630 -81, 376 Public debt held by the IMF and international lending organizations ( - ) _____________________________________________________ - 3, 328 - 2, 937 -2. 237 Total net debt outstanding, unified comprehensive budget concept_ ________________________________________________ _ 269,160 290,000 298,000 Participation certificates and defense family housing above__________ -8, 153 -11. 458 -13, 608 Debt issued in lieu of checks other than to IMF and international lending organizations ( - ) ____________________________________ -13, 321 -13, 916 -14, 466 Debt issued to public by Federal land banks and Federal home loan banks______________________________________________________ 8,239 8,119 10,979 Public and agency debt held by Federal land banks and Federal home loan banks(-) _____________________________________________ -3,851 -2, 100 -2, 100 Debt issued for IMF drawings, net of Exchange Stabilization Fund holdings____________________________________________________ 828 828 828 Debt issued by trust revolving funds, not included in consolidated -93 -91 ~ 104 cash computations (-) _________ __ ____ __ ____ __ ___ _____ _____ __ Public debt held by trust revolving funds not included in consolidated cash computations___________________________________________ 11 12 13 Debt issued by the District of Columbia Armory Board____________ 20 20 20 Public and agency debt held by District of Columbia agencies_______ -65 -70 -73 Total net debt outstanding, consolidated cash concept________ l 252,773 271,344 279,489 After adjusting for reclassification of participation sales trust fund. Financing other than borrowing.-The remaining adjustments in table A-1 that do not affect borrowing (except for those which are self-balancing within table A-1) generally affect either the cash accounts https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 470 THE BUDGET FOR FISCAL YEAR 1969 or the liabilities related to the cash accounts. One item in this group is the accumulation of trust fund balances, which, in conventional administrative budget terms, represent a change in liabilities. In both the consolidated and comprehensive budget concepts, trust fund balances, like the Federnl fund balances, are merely a reservation within the total balances on the books of the Treasury that result from the cumulative surplus or deficit. THE "ADMINISTRATIVE BUDGET" Table A-3 presents, according to customary classifications, the administrative budget as derived from the adjustments set forth m the preceding tables. Table A-3. THE "ADMINISTRATIVE BUDGET" (in millions of dollars) Description 1967 1968 1969 actual estimate estimate RECEIPTS BY SOURCE Individual income taxes _________________________________ _ Corporation income taxes _______________________________ _ Excise taxes ___________________________________________ _ Estate and gift taxes ___________________________________ _ Customs ______________________________________________ _ Miscellaneous receipts __________________________________ _ Interfund transactions __________________________________ _ Total, administrative budget receipts ________________ _ 61,526 33,971 9,278 2,978 1,901 6,87, -682 67,700 31,300 9,509 3,100 2,000 5,644 -678 80,900 34,300 9,908 3,400 2,070 5,669 -660 115,849 118,575 135,587 l=====l=====I EXPENDITURES BY AGENCY Legislative Branch _____________________________________ _ 285 250 The Judiciary _________________________________________ _ 95 87 Executive Office of the President_ ________________________ _ 32 28 Funds appropriated to the President_ ____________________ _ 4,808 4,141 Department of Agriculture ______________________________ _ 6,520 5,741 Department of Commerce _______________________________ _ 856 757 Department of Defense-Military ________________________ _ 67,664 73,930 Department of Defense-Civil__ _________________________ _ 1,401 1,343 Department of Health, Education, and Welfare ____________ _ 13,156 10,794 Department of Housing and Urban Development_ _________ _ 495 493 Department of the Interior_ _____________________________ _ 1,542 1,516 Department of Justice __________________________________ _ 443 409 Department of Labor ___________________________________ _ 713 512 Post Office Department_ ________________________________ _ 1,087 1,141 Department of State ___________________________________ _ 421 414 Department of Transportation ___________________________ _ 1,570 1,467 Treasury Department_ _________________________ - - - _- ___ _ 15,493 14,538 Atomic Energy Commission ______________________ - _- ___ _ 2,333 2,264 648 General Services Administration __________________ - _-- __ _ 675 4,805 5,426 National Aeronautics and Space Administration _____ -- - ___ _ Veterans Administration ________________________________ _ 6,325 6,197 804 543 Other independent agencies ______ . ________ - - - - - - - --- - - - - Allowances for: Civil\an an? military pay increase _______________________ --------- - ----------Contmgenc1es ________________________________________ - - _- - - - - - - 100 lnterfund transactions____________________________________ -682 -678 296 101 33 4,900 7,220 910 76,881 1,371 14,515 1,249 1,717 504 712 767 431 2,093 16,440 2,546 673 4,575 6,818 1,322 137,182 147,363 Total, administrative budget expenditures ____ - _- - - - 125,718 1,600 350 -660 l=== i====I=== 0 Excess over receipts ( +) or expenditures ( - ) _________ - - - - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -9 ,8691 -18,607 -11, 776 471 SPECIAL ANALYSES As in the case of the basic tables of the budget, the amounts shown include transactions under both existing and proposed legislation. The receipts, therefore, include the expected income from the proposed income tax surcharge, as well as lesser amounts from other tax proposals. The expenditures include those to be financed from Federal funds under the President's legislative program, as well as those recommended under existing legislation, and its renewal or extension. FLOW OF GOVERNMENT-ADMINISTERED FUNDS In recent years there has been presented in the special analyses of the budget, a consolidated statement of Government-administered funds on a gross basis. This statement presents the flow of moneys between the Federal Government and the public. It has been on a checks-issued basis and its coverage has been substantially the same as the new concept. It excludes borrowing and repayment thereof. The Commission recommended that the compilation of such gross figures be continued as supplementary information. Table A-4 presents such a statement. Table A-4. GROSS FLOW OF GOVERNMENT-ADMINISTERED FUNDS (In millions of dollars) Description 1967 1968 1969 actual estimate estimate RECEIPTS BY SOURCE Individual income taxes __________________________________ Corporation income taxes ________________________________ Employment taxes ______________________________________ Unemployment insurance ________________________________ Premiums for insurance and retirement_ ___________________ Excise taxes ____________________________________________ Estate and gift taxes ____________________________________ Customs _______________________________________________ Other receipts from the public: General and special funds ______________________________ Public enterprise funds ________________________________ Trust funds (excluding trust revolving funds) ____________ Trust revolving funds _________________________________ Reimbursements to appropriations and other funds ________ Total receipts from the public ______________________ 61,526 33,971 27,823 3,652 I, 853 13,719 2,978 I, 901 67,700 31,300 29,730 3,660 5,280 14,812 I, 836 4,838 14. 755 9,549 2. 450 181,350 2,049 13,848 3,100 2,000 2,035 11. 481 2,475 188,971 80,900 34,300 34,154 3,594 2,275 14,671 3.400 2,070 5,070 16,542 2,291 13,238 2,630 215,135 PAYMENTS BY FUNCTION National defense ________________________________________ 74,245 International affairs and finance __________________________ 6,032 Space research and technology ____________________________ 5,439 Agriculture and agricultural resources _____________________ 18,859 Natural resources _______________________________________ 3,920 Commerce and transportation ____________________________ 12,953 Housing and community development_ ____________________ 4,313 Health, labor, and welfare ________________________________ 39,017 Education ______________________________________________ 4,186 Veterans benefits and services ____________________________ 7,937 Interest_ _______________________________________________ 10,561 General government_ ____________________________________ 2,709 Allowances for: Civili_an an1 military pay increase _______________________ Contmgenc1es ________________________________________ --------------------Total payments to the public _______________________ 190, 173 Excess of payments ( - ) _________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -8,823 80,389 6,334 4,812 20,184 4,196 14,234 6,370 45,311 4,702 8, 195 11, 147 2,803 15,285 5,897 50,419 4,879 8,405 11,655 3,015 ----------- 1,600 100 208,775 -19,805 83,979 6,635 4,589 22,075 4,308 350 223,090 -7, 954 472 THE BUDGET FOR FISCAL YEAR 196 9 It differs from the unified comprehensive budget, only with respect to grossing and netting and the distribution here of the nonfunctional adjustments shown elsewhere. Its deficits are the .same. The items which are here grossed may be summarized as follows (in millions of dollars): 1968 estimate estimate 14,812 9,549 14,755 11,481 16,542 13,238 2,249 200 2,278 197 2,432 198 12) ___ --- -- --- --- -- ---- -- ---- _--- -- -- _----- ___ -- ---- ____ -- _ 4,948 4,430 4,617 TotaL ________________________________________________ _ 31. 758 33,141 37,027 Receipts conventionally offset against expenditures: Receipts of public enterprise funds (table C-1) _________________ _ Receipts of trust revolving funds (table C-5) __________________ _ Reimbursements to appropriations and other funds: Department of Defense ____________________________________ _ Other agencies ___________________________________________ _ Other receipts offset against expenditures in the new budget (table 1967 actual 1969 Table A-4 is not fully comparable to similar information presented in recent budgets (table B-9 in the 1968 budget), because of the following conceptual changes that were set forth earlier in this analysis: • Definition of borrowing (sale of participation certificates); • Definition of cash and monetary assets (IMF); • Timing of payments to international lending organizations; • Government payments as employer for social security. COMPARISON OF RESULTS Table A-5 summarizes receipts, expenditures, and deficits under the new concept, the old administrative budget, the consolidated cash statement, and the flow of funds statement included above. Table A-5. COMPARISON OF RESULTS UNDER FOUR CONCEPTS (In millions of dollars) Description 1967 1968 1969 actual estimate estimate Unified, comprehensive budget: Receipts _____________________________________________ Expenditures and net lending ___________________________ 149,591 158,414 155,830 175,635 178,108 186,062 Budget deficit ____________________________________ 8,823 19,805 7,954 The "administrative budget": Receipts _____________________________________________ Expenditures (including lending) ______________________ ._ 115,849 125,718 118,575 137,182 135,587 147,363 Excess of expenditures _____________________________ 9,869 18,607 11,776 "Con&<>lidated cash" statement: Receipts __ . __________________________________________ Expenditures (including lending) ________________________ 153,596 155,142 158,823 175,981 181.146 188,725 Excess of expenditures _____________________________ 1,546 17,157 7,579 Flow of Government-administered funds: Receipts from the public _______________________________ Payments to the public ________________________________ 181,350 190,173 188,971 208,775 215,135 223,090 Excess of payments _______ . - __ . _____ . _____________ 8,823 19,805 7,954 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSIS B FEDERAL TRANSACTIONS IN THE NATIONAL INCOME AND PRODUCT ACCOUNTS The budget is designed to serve many purposes: • It represents a proposed allocation of resources to serve national objectives, between the private and public sectors, and within the public sector; • It is an economic document which embodies the taxing and spending policies of the Government for promoting high employment, price stability, growth of the national economy, and maintainance of the Nation's balance of payments; • It sets forth the President's requests to Congress for appropriation action on existing or new programs, and changes in tax legislation; • It is a report to the Congress and the people on how the Government has spent the funds entrusted to it in past years. No single budget concept can completely satisfy all purposes. The budget is designed to provide a unified picture of the Federal Government's finances, while other series-such as the Federal sector of the national income accounts (NIA)-focus on specific areas of concern for various other purposes. In past years, the budget document included a special analysis which concentrated on explaining the relationship among the three most widely used measures of Federal financial transactions: (1) the administrative budget, (2) consolidated cash statement (receipts from and payments to the public), and (3) the Federal sector of the national income accounts. In accordance with the recommendations of the President's Commission on Budget Concepts, neither the administrative budget nor the consolidated cash will be utilized as major measures of Federal finances. The relationship between the new budget and these two older concepts is discussed in detail in Special Analysis A. The budget document and related Treasury reports provide detailed information on the finances of the Federal Government. The national income accounts of the United States are the most widely used measures of aggregate economic activity in the country. This analysis is designed to explain the relationships of the budget to the Federal sector of the national income accounts, and to present the budget estimates in national income terms. This analysis is divided into three major sections: (1) the size and trends of major components in the Federal sector; (2) the relationship between the Federal sector and the budget; and (3) definitions of the major categories of the Federal sector. TRENDS IN FEDERAL SECTOR RECEIPTS AND EXPENDITURES Total expenditures in the Federal sector accounts budget are estimated to rise by $13.9 billion between fiscal 1968 and 1969, receipts by $21.4 billion. As a consequence, the Federal sector deficit will decline by $7.5 billion, from $10 billion in 1968 to $2.5 billion in 1969. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 473 474 THE BUDGET FOR FISCAL YEAR 1969 Trends in Federal sector receipts.- Rising levPls of eeonomie activity Pxpand the Nation's tax hasp and provide increased sources of Federal revenues. BPtwPen 1952 and 1967, Federal sector receipts more than doubkd despite• major decreases in tax rates and liberalization of tax provisions. Receipts in the national income accounts increased from $65.1 billion in fiscal 1952 to $147.6 billion in 1967. Part of this growth, however, has resulted from increases in social security tax rates and wage ceilings. Consequently, Federal receipts have kept pace with the growth in the economy. Two major factors account for most of the changes in Federal sector receipts in 1969: (1) The level of economic activity.-Personal tax and nontax receipts consist mainly of income taxes and tend to increase as personal income rises. Since income tax rates are progressive, there is a larger than proportional increase in these receipts as more people enter the higher income brackets. Corporate profits taxes, which are closely related to corporate profits, are also influenced by the level of economic activity and the profitability of business corporations. Since business taxes consist mainly of excise taxes on certain goods and services, such as tobacco, alcohol, automobiles, and telephones, they depend largely on the level of purchases of these items. Social insurance contributions expand with the growth in employment and earnings. (2) Changes in tax rates.-The 1969 budget recommends a 10% income tax surcharge on individuals and corporations. In addition, contributions for social insurance in fiscal 1969 will be affected by recent legislation which increased the ceiling on wages subject to social security taxes from $6,600 to $7,800 beginning January 1, 1968, and which raised the combined employer and employee tax rate from 8.8% to 9.6% effective January 1, 1969. Trends in Federal sector expenditures.-The $13.9 billion rise in Federal sector expenditures in 1969 compares with increases of $16 billion in 1968 and $23.2 billion in 1967. The upsurge in defense purchases, starting ,vith the large-scale commitments of American troops in Vietnam, is expected to continue in the year ahead, but at a much reduced rate. Federal sector expenditures, like receipts, have grown significantly over the past 15 years. The demands of a growing population, an expanding economy, and an unsettled world have resulted in new and expanded Federal programs to meet these needs. Nevertheless, despite a doubling of Federal sector expenditures from 1952 to 1967, about the same proportion of the gross national product was devoted to Federal programs in 1967 as prevailed 15 years previously. This year, Federal sector expenditures will account for 20.9% of the GNP, slightly lower than the 21.1 % accounted for 15 years ago. Significant shifts, however, have occurred among the several categories of expenditures, reflecting world conditions, domestic problems, and basic Government policy. As chart B-1 indicates, the largest proportion of Federal outlays is for national defense purchases of goods https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 475 SPECIAL ANALYSES and services, which increased rapidly early in the 1950's due primarily to the requirements of the Korean war. Since that time defense spending as a percent of the total declined to a low point of 7.5% in 1965, and has risen somewhat since as a result of the conflict in Vietnam; they are expected to reach 9.1 % of GNP this year, compared with 13.6% in 1953. Federal Sector Expenditures Ma;o, Categories as a Percent ol Total p- 100- -----~-.. . .--------------------, All Other Grants in Aid 80- Domestic Transfers 60- Non Defense Purchases Defense Purchases 20- 0---...1.-.i..........._..,_..,__.__,j_ 19-49 Fitc:olY-. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 195-4 _,__.___.i.............i-.i.......i..__._...__.___, 1959 196-4 1969 476 THE BUDGET FOR FISCAL YEAR 196 9 Aside from space, nondefense spending for goods and services has been a very stable proportion of total expenditures. Nondefense purchases have been subject to especially heavy economy efforts recently in order to mitigate inflationary pressures. Expenditures for space exploration have grown rapidly in recent years, rising from $401 million in 1960 to a high of $5. 9 billion in 1966; they have declined somewhat since then, and are expected to total $4.6 billion in 1969. Grants-in-aid reflect Federal efforts to assist State and local governments in meeting pressing domestic needs. Most of the items included in the grants-in-aid category in the Federal sector accounts are also included in the discussion of Federal aids in Special Analysis K of this budget. Table B-1 shows both grants and domestic transfer payments-broken into several major groupings-for the past 10 years. Table B-1. GRANTS-IN-AID AND DOMESTIC TRANSFER PAYMENTS (In billions of dollars) Grants-in-aid Domestic transfer payments Fiscal year Public Highways assistance All other Retirement and disability Unemployment insurance Hospital and suppie mental All other medical insurance 1960 ___________ 1961__ _________ 1962 ___________ 1963 ___________ 1964 ___________ 1965 ___________ 1966 ___________ 1967 ___________ 1968 ___________ 1969 ___________ 2. 1 2.2 2.4 2.7 2.9 3. 3.. 3.5 4.2 5.2 5.8 I 2.9 2.6 2. 8 3.0 3.6 4.0 3.9 4.0 4.3 4.3 I. 9 2. 1 2.4 2.6 3.3 3.6 5.3 7.2 8.5 9.9 16. 5 18. 1 20.1 21. 9 23. 1 24.3 28. 1 29.7 32.5 36.4 2.6 4.0 3. 5 2.9 2.8 2.4 2.0 2.0 2.4 2.4 ------------------- ---------------------------- ------------------- 3.2 4.8 5.5 1.5 1.5 1.5 1. 6 1. 4 I. 6 1.7 2.8 3.3 3.6 Domestic transfer payments (which are mainly pensions, unemployment benefits, and veterans benefits) account for the second largest share of total Federal expenditures-an estimated 25.9% in 1969. During the late 1950's there was a rapid decline in expenditures for the GI bill but recent legislation is providing benefits for veterans who were ineligible under the earlier programs, while social security benefits under both retirement and health programs have expanded rapidly in recent years. A significant part of the war on poverty is in the form of transfer payments. In general, the growth of these programs has been the result of efforts to meet the needs of the poor, sick, and elderly-an obligation that our Nation cannot afford to shirk. Taole B-2 shows Federal expenditures as a percent of total GNP, for alternate years, since 1952. These expenditures have been remarkably stable as a portion of our Nation's economy. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 477 SPECIAL ANALYSES Table B-2. FEDERAL SECTOR NIA EXPENDITURES AS A PERCENT OF GNP Purchase, Fiscal year Domestic tranafer Grants .. Total expend .. it urea Nondefenae Defenae NASA 1952 ________ -- -- --- __________ 1954 ___ --- ______________ -- ___ 1956 ___ ----- _________________ 1958 _________________________ 1960 _________________________ 1962 ____________ -- ___________ 1964 ________ -- ---- ___________ 1966 ____ -- -- __________ -- _____ 1968 ____ -- -- --- ______________ 19.6 20.5 17.0 18.9 18.4 19.6 19.1 18.4 20.9 --12.4 12.6 9.6 l0.2 9.1 9.3 8.3 7.6 9.1 (1) (1) (1) (') in-aid 0.7 .8 .8 I. I 1.4 1.4 1.6 1.8 2.2 2.5 2.1 2.1 2.2 2.2 2.4 2.3 2.2 2.1 1.8 2.2 2.2 2.1 Other 1.4 2.1 1.5 other -- 0.1 .2 .7 .8 .6 1.5 1.7 1.7 1.6 1.7 2.5 2.9 3.1 4.0 4.2 4.6 4.5 4.4 5.3 .8 .6 1.6 1.7 4.4 5.3 1.3 All paymenta Excluding Vietnam: 1966 _______________________ 1968 ___ ----------- ---- -- --1 17.5 17.9 6.8 6.4 Leu than 0.05%. RELATIONSHIP OF THE BUDGET TO THE FEDERAL SECTOR OF THE NATIONAL INCOME ACCOUNTS The national income accounts depict the Nation's current production, income, and spending in separate major categories which are designed to aid understanding of the operations of the economy and to facilitate useful economic analysis. These accounts attempt to include all current income and production activities and do not measure transactions-such as loans-which represent an exchange of assets rather than income or production. Loan transactions have a significant economic impact, affecting both income and output, but they are best analyzed as fart of monetary rather than fiscal policy. Special Analysis E (Federa credit programs) and the means of financing statement (p. 61 of the budget) are both designed to facilitate a study of the monetary policy implications of the budget. Budget outlays are divided into two major segments-the expenditure account and the loan account. All transactions included in the loan account are excluded from the Federal sector, so this discussion will focus exclusively on how the Federal budget expenditure account relates to the Federal sector account. Table B-3 shows the major differences between the receipt-expenditure account in the budget and the Federal sector estimates. These differences are explained in the following paragraphs. Employee retirement.-The Civil Service and Foreign Service retirement programs are financed by employer and employee contributions. Retirement benefits under these programs are recorded as expenditures in the budget and as transfer payments in the Federal sector https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 478 THE BUDGET FOR FISCAL YEAR 196 9 Table B-3. RELATIONSHIP OF THE RECEIPT-EXPENDITURE ACCOUNT TO THE FEDERAL SECTOR NIA (in billions of dollars) 1967 1968 1969 actual ea ti mate estimate RECEIPTS Total budget receipts _______________________________________ 149.6 155.8 178.1 Employer share, employee retirement (grossing) _____________ Other netting and grossing ________________________________ Adjustment to accruals ___________________________________ Other __________________________________________________ 1.7 I. I 1. 9 1.2 2.2 2.0 1.2 1. 1 -4.8 (1) (1) 147.6 161. 1 182.5 Total budget expenditures (excludes net lending) ______________ 153. 2 169.9 182.8 Employer share, employee retirement (grossing) _____________ Other netting and grossing ________________________________ Defense timing adjustment_ _______________________________ Lending in the expenditure account_ _______________________ Dollar expenditures to finance agricultural exports ___________ Other __________________________________________________ 1.7 I. 1 -.4 -1.4 -.8 I. 6 I. 9 1.2 .3 -1.7 -.7 .2 2.0 1.2 .4 -2.1 -.5 I. 1 155.1 171. 1 185.0 Federal sector, NIA receipts __ ------------------------------ (1) EXPENDITURES Federal sector, NIA expenditures ____________________________ I Less than $50 million. accounts. The contributions of Government agencies, as employers, to these retirement trust funds are deducted from total budget expenditures since these contributions represent intragovernmental transactions. However, the NIA accounts consider Government payments for employee retirement to be part of the compensation paid to Government employees who, in turn, make their trust fund contributions. Therefore, the Federal sector accounts include the Government's contributions to employee retirement funds in both receipts and expenditures. Likewise, Federal payments on behalf of its employees to the old-age and survivors disability insurance programs are included in Federal sector receipts and expenditures. These adjustments affect total receipts and expenditures equally and thus do not alter the budget surplus or deficit. Other netting and grossing.-The budget normally counts as receipts only income from taxation or revenues due to the exercise of governmental power to compel. Money received in the course of business type transactions, therefore, are normally shown as offsets against expenditures. For instance, receipts from two major insurance programs operated by the Veterans Administration (National Service Life Insurance and United States Government Life Insurance) are https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSES 479 netted against expenditures in the budget since these programs are voluntary, business-type activities. However, in the NIA the receipts are treated in the same way as receipts from compulsory Government insurance programs. This adjustment also has no impact on the budget surplus or deficit. Timing adjustments.-At the present time the budget counts receipts when the cash is collected, and most expenditures when the checks are issued to pay the bills. In the NIA receipts are counted when the income is earned or when the transaction giving rise to the receipt occurs, even though the cash may be received at a later point. Accrued expenditures record outlays when the production or work takes place rather than when the payment is made. This permits changes in receipts and expenditures to more accurately reflect the impact of the Government on the economy. Since the accrual concept is followed in the national income accounts receipts, they differ from budget receipts by the amount of estimated accruals which are not collected in the time period covered. Defense purchases are recorded in the Federal sector at the time of delivery of goods instead of when they are paid for; work in process on fixed-price contracts is counted as change in business inventories. Both the budget and the Federal sector record public debt interest when it accrues. Lending.-The loan account in the budget includes only those domestic credit transactions where there are definite requirements for full repayment of the loans, plus all foreign loans made on commercial terms. Those credit programs which do not meet these requirements are included in the expenditure account. The Federal sector, however, excludes not only all lending transactions included in the loan account, but also some credit programs included as expenditures in the budget-such as foreign loans in AID and tobacco and foreign loans in the Commodity Credit Corporation (CCC). Certain credit transactions in the expenditure account-like most CCC nonrecourse commodity loans-are treated as purchases of goods under the national income accounts concept. Dollar expenditures to finance agric,ultural exports.-The Commodity Credit Corporation facilitates the export of agricultural products by acquiring the foreign currencies used to pay for such commodities. This expenditure of dollars is included in the budget but excluded from the Federal sector on the ground that it is an exchange of financial assets: dollars for foreign currencies. When the foreign currencies thus acquired are spent, they are then counted as Federal sector ex pen di tu res. Other.-This category includes some of miscellaneous adjustments largely for certain specialized aspects of the national income accounts https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 480 THE BUDGET FOR FISCAL YEAR 196 9 such as purchases and sale of land, which are included in the budget but not in the national income accounts. Certain nondefense timing adjustments are included here because of the difficulty in separating them from other adjustment categories included herein. It also includes adjustments for the expenditure of foreign currency acquired as described in the paragraph above. MAJOR CATEGORIES OF THE FEDERAL SECTOR OF THE NATIONAL INCOME AccouNTS Federal sector receipts.-Federal receipts on a national income basis largely reflect the tax payments or liabilities of individuals and of corporations and other businesses arising out of incomes earned. They also include other tax and nontax receipts. These receipts are classified into the following four categories: (1) personal tax and nontax receipts, (2) corporate profits tax accruals, (3) indirect business tax and nontax accruals, and (4) receipts from contributions for social insurance. 1. Personal tax and nontax receipts consist mostly of individual income taxes, estate and gift taxes, fines, fees, and donations. 2. Corporate profits tax accruals comprise the Federal tax liability incurred and accrued on corporate earnings during the specified year or period. While the budget treats Federal Reserve payments of earnings to the Treasury as miscellaneous receipts, these are included in the corporate profit tax category in the Federal sector. 3. Indirect business tax and nontax accrual,s consist primarily of excise taxes, customs duties, and Federal receipts from rents and royalties. 4. Contributions for social insurance are composed chiefly of payroll taxes for retirement, disability, hospital, and unemployment insurance, plus employer and employee contributions to retirement funds of Federal Government employees and premiums for federally operated veterans and medical insurance programs. Table B-4 shows the adjusted receipts and expenditures after reclassification into the national income accounts categories. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 481 SPECIAL ANALYSES Table B-4. FEDERAL RECEIPTS AND EXPENDITURES IN THE NATIONAL INCOME ACCOUNTS (in billions of dollars) Description 1967 1968 1969 actual eatimate estimate RECEIPTS, NATIONAL INCOME BASIS Personal tax and nontax receipts ____________________________ _ Corporate profits tax accruals ______________________________ _ Indirect business tax and nontax accruals ____________________ _ Contributions for social insurance ___________________________ _ 64.6 31.4 15.9 35.7 71.0 34.3 17.1 38.7 83.8 37.2 18.1 43.4 Total receipts, national income basis _______________ - - - - 147.6 161. I 182.5 92.8 (74.4) (18.4) 44.9 (43.0) (I. 9) 18.0 l0.7 4.6 99.4 (78.8) (20.6) 49.9 (47.9) (2.0) 20.0 11.2 4.5 I=== EXPENDITURES, NATIONAL INCOME BASIS Purchases of goods and services _____________________________ _ Defense ________________________________________________ _ Nondefense ____________________________ - - - - - - - -- - - - -- - - Transfer ~ay'!!ents _____ ~.- ________________ - -- - - ----------- - Domestic ( to persons ) _________________________________ _ Foreign ________________________________________________ _ Grants-in-aid to State and local governments _________________ _ Net interest paid _________________________ - - - ------------ -- Subsidies less current surplus of Government enterprises_ - __ - - - - 84.5 (67.6) (16. 9) 39.8 (37. 7) (2.1) 15.4 IO. I 5.3 1----1--- Total expenditures, national income basis ______________ _ 155.1 171. I 185.0 Surplus(+) or deficit(-), national income basis ____________ _ -7.5 -l0.0 -2.5 Federal sector expenditures.-Federal expenditures on a national income basis represent either purchases of goods and services or outlays which directly affect current levels of income. These expenditures are classified in the following five categories: (1) purchases of goods and services, (2) transfer payments, (3) grants-in-aid to State and local governments, (4) net interest paid, and (5) subsidies less current surplus of Government enterprises. The definitions of the categories have been developed by the Department of Commerce so that they are consistent with the framework of accounts used to cover all sectors of the Nation's economic activity. I. Purchases of goods and services measure the value of the Nation's output (i.e., gross national product) bought directly by the Federal Government. Thus, Federal expenditures for goods and services represent the value of output taken by the Federal Government itself. These purchases include the pay of active military and civilian employees of the Federal Government, employer contributions for retirement, insurance, and other benefits for Federal employees; deliveries of equipment and supplies for defense and other programs; construction put in place for the Government; payments on research and development contracts with corporations and on similar agree- ,300-000 0-68--31 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 482 THE BUDGET FOR FISCAL YEAR 196 9 men ts with private nonprofit institutions; expenditures for the purchase of commodities to be donated to schools or similar institutions; and, generally, the administrative expenses of Government programs. Federal purchases, in turn, are classified in two major subcategories-defense and nondefense. The defense category includes purchases for those activities classified under the defense function of the budget. Purchases for all other types of activities are classified as non defense. 2. Transfer payments consist of expenditures by the Federal Government for which no current services have been rendered. Examples of transfer payments are: veterans compensation, pensions, and benefits; retired pay to Federal civilian or military personnel; unemployment benefits; old-age, survivors, disability, health, and supplemental medical insurance; and nonrepayable outlays for scholarships and fellowships. Although transfer payments do not directly enter gross national product as a Federal Government component, they are a part of personal income and are counted as part of national output when respent by the recipients. 3. Grants-in-aid to State and weal governments, for purposes of the national income accounts, are Federal payments (other than for interest on the public debt) to State and local governments, including State and local educational institutions. Like transfer payments and net interest paid, Federal grants-in-aid are counted in the GNP when spent by recipients-in this case, as purchases by State and local governments or as consumption expenditures of individuals receiving State or local transfer payments. 4. Net interest paid consists of the interest outlays to residents (including State and local governments) minus the interest received from them. 5. Subsidies less current surplus of Government enterprises consists of two elements which are consolidated for statistical reasons: (a) subsidy payments to resident businesses and (b) the "current surplus" or "deficit" of Government enterprises. (a) A subsidy is a monetary grant to a private business. By definition, therefore, subsidies are made only to businesses organized for profitmaking purposes (including farms). Examples of subsidies are Government payments to farmers for land retirement, payments to air carriers, and the operating differential subsidy of the Maritime Administration. (b) Government enterprise is the term applied to those functions of the Government (usually appearing in the budget as public enterprise revolving funds) for which operating costs are to a great extent covered by the sale of goods and services to the public, as distinguished from those being financed by tax receipts. Government enterprises conduct operations which are of a business-type nature. The difference between their sales and current operating expenses constitutes the surplus or deficit of Government enterprises. The Post Office and the Tennessee Valley Authority are two of the largest enterprises. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSIS C PUBLIC ENTERPRISES, TRUST FUNDS, AGENCY BORROWING, AND INVESTMENT This analysis presents selected information on the financing and operations of the public enterprise funds and the trust funds. Additional tables in this special analysis relating to agency borrowing and to agency investments in U.S. securities are an integral part of the computation of the changes in debt in table 9 (in part 2 of the budget). PUBLIC ENTERPRISE FUNDS The public enterprise funds are federally owned funds which carry on a cycle of operations, primarily with the public, organized usually on a business-type basis. Some of them are incorporated enterprises; others are unincorporated. Their outlays have been included, on a net basis, in the budgets and financial reports on Federal funds for many years. The general fund usually supplies them with capital; the provision of such capital, its return, and any dividends given to the general fund are not counted in the budget totals as expenditures, net lending or receipts. Outlays and receipts.-Gross outlays of public enterprise funds are estimated to be $30.5 billion in 1969, and their receipts will be $22.8 billion (table C-1), resulting in net outlays of $7.7 billion. The Commodity Credit Corporation and the postal fund together account for slightly more than half of the outlays. The figures exclude the effects of proposed legislation to create new funds for certain activities now funded directly by general fund appropriations. The receipts do not include the proceeds of borrowing (either through participation certificates or otherwise), nor do the expenditures include the repayment of borrowing. The outlays in table C-1 include certain interfund payments to the general fund, principally for interest (see table 12). The receipts shown in table C-1 are generally from the public; but they include some transactions from within the Government-notably, the sales of Commodity Credit Corporation inventories and services to appropriations for special activities, and the short-term loans and repayments resulting from the line of credit extended to the Federal National Mortgage Association secondary market operations fund. The sales of Tennessee Valley Authority power to Government agencies, payments by all agencies to the Post Office for postal services, and interest paid to certain funds on their investments are other examples of such intragovernmental receipts included in table C-1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 483 484 THE BUDGET FOR FISCAL YEAR 196 9 GROSS OUTLAYS AND APPLICABLE RECEIPTS OF PUBLIC ENTERPRISE FUNDS (in millions of dollars) Table C-1. Applicable receipts Groaa outlays Description 1967 1968 actual estimate --- --Funds appropriated to the President: Economic assistance _________________ Other ______________________________ Department of Agriculture: Commodity Credit Corporation 1 ______ Farmers Home Administration ________ Federal Crop Insurance Corporation ___ Department of Commerce ______________ Department of Defense: Military____________________________ Civil (Panama Canal Company) ______ Department of Health, Education, and Welfare ____________________________ Department of Housing and Urban Development: College housing loan fund ____________ Urban renewal fund _________________ Low-rent public housing fund _________ Federal National Mortgage Association_ Federal Housing Administration _______ Other ______________________________ Department of the Interior .. ____________ Department of Labor __________________ Post Office Department_ _______________ Department of Transportation __________ Treasury Department_ _________________ General Services Administration_________ Veterans Administration _______________ Other independent offices: Export-Import Bank of Washington ___ Farm Credit Administration __________ Federal Home Loan Bank Board: Federal Savings and Loan Insurance Corporation ____________________ Other ____________________________ Small Business Administration ________ Tennessee Valley Authority___________ United States Information Agency ____ 1967 1968 1969 actual estimate estimate I, 186 231 76 320 85 362 108 400 8,682 1,367 28 243 7,758 1,672 56 213 8,090 1,757 47 213 6,764 1,385 35 255 4,876 1,771 41 229 5,233 1,759 46 238 29 131 20 148 27 154 30 144 18 153 13 156 18 64 83 15 10 14 460 991 416 3,015 944 262 116 279 6,468 23 454 973 505 4,350 930 280 123 306 6,919 27 2 461 I, 176 560 2,965 1,047 354 IOI 546 148 2,385 957 18 51 282 5,326 20 121 473 205 3,368 972 28 56 310 5,832 23 2 134 465 240 2,658 1,029 33 61 360 6,575 23 179 I, 137 210 I 1,074 1969 estimate --- --- --- --- 113 356 7,342 32 177 I 821 890 * 1,035* 606 1,707 3 I ,760 7 1,928 4 1,271 16 * * 674* I, 188 12 84 * 733 1,362 13 262 416 406 101 19 7 24 21 17 22 17 19 556 283 413 430 557 383 586 420 436 479 529 377 3 I 3 I * * --- --- --------Total __________________________ 28,385 30,061 30,509 21,694 22,049 22,792 ------ --------Receipts from the public _______________ -------- -------- -------- (14,812) (14,755) (16,542) Receipts from other accounts ___________ ( 6,882) ( 7,294) ( 6,250) • Less than $500 thousand. I Includes advances from foreign assistance and special export programs of $1,509 million in 1967, $1,198 million in 1968, and $1,448 million in 1969. Capital and borrowing.-Capital requirements of the public enterprise funds are usually supplied through budget authority (either appropriations or some other form of such authority) from the general fund. While most public enterprise funds are operated to be selfsustaining over a period of years, the largest-the Commodity Credit https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 485 SPECIAL ANALYSES Corporation-has incurred substantial losses in most years. Appropriations have been made regularly to make up for the loss in this fund, the postal deficit, and other losses in a few smaller funds. Contract authorizations have also been provided for the Commodity Credit Corporation and for the urban renewal fund of the Department of Housing and Urban Development. Authorizations to spend debt receipts are used, especially for credit programs. Table C-2 reflects all such new obligational authority. The return of capital shown here includes the writeoff of unused authority, the return of capital and transfer of dividends to the general fund of the Treasury, net transfers to other accounts, and the repayment of borrowing that is not renewable. The effect of these capital transactions, together with outlays and receipts, upon the public enterprise fund group may be summarized as follows (in millions of dollars): 1967 Balances, start of year: Cash and balances in Treasury _________________________ 8,926 U.S. securities ________________________________________ 2,394 Undrawn authorizations: Contract authorizations _____________________________ 3,815 Authority to borrow from Treasury ___________________ 22,508 Authority to borrow from the public __________________ 779 Additional amounts becoming available: Budget authority _____________________________________ 12,289 Applicable receipts ____________________________________ 21,694 Total available ___________________________________ Application of funds: Expenditures and loan disbursements____________________ Return of capital and authority, net of transfers in _______ Balances, end of year: Cash and balances in Treasury _______________________ U.S. securities ______________________________________ Undrawn authorizations: Contract authorizations ___________________________ Authority to borrow from Treasury _________________ Authority to borrow from the public ________________ Total application and balances ___________________ 1968 1969 I0,823 2,836 11,768 4,016 3,006 25,844 1,264 3,994 25,509 1,601 11,998 22,049 11,817 22,792 72,405 77,821 81,496 28,385 248 30,061 875 30,509 1,209 I0,823 2,836 11,768 4,016 12,702 4,939 3,006 25,844 1,264 3,994 25,509 1,601 3,644 27,394 1,100 72,405 77,821 81,496 Where the new obligational authority consists of authorizations to expend public debt receipts or appropriations to provide capital, rather than to make up deficits or finance losses, it is customary for the amounts thereof to become interest bearing when used or when credited to the fund. Upon the creation of new revolving funds, to finance programs previously financed otherwise, capital may also be provided by the transfer of assets, including appropriation balances, into the new fund. Liabilities and obligations are taken over, also. Minor adjustments in capital occasionally include other transfers to or from appropriations when authorized by law, and the transfer of real or personal property into or out of a fund. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 486 THE BUDGET FOR FISCAL YEAR 196 9 Table C-2. BUDGET AUTHORITY AND OF CAPITAL OF PUBLIC ENTERPRISE FUNDS (in millions of dollars) Budget authority Return of capital (net of transfers in) Description 1967 1968 1969 1967 actual estimate estimate actual 1968 1969 estimate estimate ---------------,---- ----------- --- - Funds app_ropri~ted to the President: Economic assistance _________________ _ 920 824 1,280 34 226 28 Other_ _____________________________ _ 75 34 4 -133 (1) Department of Agriculture: Commodity Credit Corporation________ 2,785 2,423 3,362 -13 18 29 Farmers Home Administration_________ 671 750 425 ______________________ _ Department of Commerce ______________________________________ _ 5 2 ------20 12 Department of Defense-Military________ ________ 1 -------1 Department of Defense-Civil (Panama Canal Company) ____________________________________________________ _ 10 ------Department of Health, Education, and Welfare ____________________________ _ 316 124 105 -1 * Department of Housing and Urban Development: College housing loan fund_____________ 602 1,924 648 ______________________ _ Urban renewal fund__________________ 740 850 1,250 ______________________ _ Federal National Mortgage Association_ 1,366 1,237 1,730 177 185 994 2 305 Low-rent housing fund________________ 269 358 * * * Other_______________________________ 292 333 303 6 4 10 Department of the Interior____________ __ 73 55 41 3 3 2 43 ______________________ _ Department of Labor___________________ ________ ________ 1, 174 920 40 ______________ _ Post Office Department_________________ 1,215 Department of Transportation ____________ . ______ 13 ________ _______ _ Treasury Department__________________ __ ___ 1 ________ * 1* 32 General Services Administration - - -- - - - - - - - - - _ * * * Veterans Administration________________ 260 851 527 17 199 3 Other independent offices: , Export-Import Bank__________________ 779 [ 865 608 50 50 50 Federal Home Loan Bank Board_______ 13 _______ . ______________________________ _ Small Business Administration_________ 851 ] 153 152 ________ 115 ______ _ Tennessee Valley Authority_ ___ _______ 1.064 I 61 50 _ 62 62 62 1i - - - - - ILJ.8171~ ~ 1 Total__ ________________________ 12,289 IU,998 1.209 * Less than $500 thousand. I In addition. the $400 million balance of the foreign military sales fund was transferred from Funds appropriated to the President to the Treasury Department in 1968, for liquidation. 2 Includes $6 million appropriation made in 1968 for 1967. Balances available.-The balances of public enterprise funds are shown in table C-3. They are there divided between the balances which are accounted for as assets of the funds, and the undrawn authorizations to obtain capital from the Treasury, to borrow, or (in two cases) to contract in excess of their cash availability. In most cases, a large part of the balances are obligated or reservedto pay loan commitments, purchase and construction contracts, or other obligations entered into but on which the other party has not yet required or earned the money. The balances include inactive "standby" authority for loans to the Federal Deposit Insurance Corporation, the home loan banks, and the Federal Savings and Loan Insurance Corporation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 487 SPECIAL ANALYSES Table C-3. BALANCES OF PUBLIC ENTERPRISE FUNDS (in millions of dollars) Cash balances in Treasury and U.S. securities as of Undrawn authorizations as of June 30 June 30 Description 1967 actual 1968 1969 estimate estimate 1967 actual 1968 1969 estimate estimate -------------- --- --- ----------- --Funds appropriated to the President: Economic assistance__________________ 2, 978 2, 786 2, 960 199 Other_______________________________ 440 40 8 250 Department of Agriculture: Commodity Credit Corporation _______ _ 50 4,403 64 50 Farmers Home Administration ________ _ 131 891 1,434 I. 723 Federal Crop Insurance Corporation ___ _ 37 22 22 Department of Commerce ______________ _ 32 47 72 Department of Defense-Military _______ _ 19 37 35 Department of Defense-Civil (Panama Canal Company) ___________________ _ 23 19 21 JO Department of Health, Education, and Welfare ____________________________ _ 316 385 420 Department of Housing and Urban Development: College housing loan fund ____________ _ l, 109 87 88 87 Urban renewal fund __ ~ ______________ _ I, 270 2,159 3,606 1,620 Low-rent public housing fund_ ________ _ 1,500 112 154 120 Federal National Mortgage Association __ 5,719 1,019 666 163 Other ____________ - - __ -- - - - - - - - - - - - - - 1,241 1,295 I, 331 1,442 Department of the Interior _____________ _ 14 22 18 8 Department of Labor __________________ _ 309 360 313 Post Office Department_ _______________ _ 581 667 820 Department of Transportation __________ _ 5 15 18 18 Treasury Department_ _________________ _ 372 401 * General Services Administration__________ * * * Veterans Administration________________ 1, 342 I, 800 2,003 196 Other independent offices: Export-Import Bank _________________ _ 116 358 366 6,000 Farm Credit Administration __________ _ 161 165 173 Loans to Federal Deposit Insurance Corporation ______________________________________________ _ 3,000 Federal Home Loan Bank Board: Loans to Federal home loan banks ___________________________ _ 1,000 Federa I Savings and Loan Insurance Corporation ____________________ _ I, 733 2,130 2,529 750 Other ____________________________ _ I 2 3 13 Small Business Administration____ ___ _ 975 891 709 330 Tennessee Valley Authority __________ _ I, 233 77 95 104 United States Information Agency _____ _ 5 6 I 6 Total _____________ - -- - -- - - - 12,999 15,508 17,641 30,774 246 135 3,940 261 4. 417 171 JO JO 2,685 3,606 1,496 5,796 1,322 3 2,978 3,606 I. 500 6,477 I, 165 II 3 85 ------6,000 5,985 3,000 3,000 1,000 1,000 750 8 50 I, 105 750 6 935 * * 31,374 32,138 *Less than $500 thousand. TRUST FUNDS The trust funds are administered in a fiduciary capacity by the Government. They are not included in the administrative budget totals, and transactions between the general fund and the trust funds are conducted "at arm's length"-that is, payments between them are reported as expenditures and receipts of the funds involved. Outlays and receipts.-Trust fund outlays are estimated to be $47.2 billion in 1969, with receipts of $54.6 billion, as shown in table C-4. The transactions of the Federal old-age and survivors insurance fund are far larger than any other one fund. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 488 THE BUDGET FOR FISCAL YEAR 196 9 Table C--4. OUTLAYS AND RECEIPTS OF TRUST FUNDS (In millions of dollars) 0 ut I ays R cceipts Description I 1?69 1967 1968 1969 1967 actual estimate estimate actual Funds to which receipts are appropriated: Federal old-age and survivors insurance trust fund. ________________________ 19,842 Federal disability insurance trust fund __ 2,071 Health insurance trust funds __________ 3,411 Unemployment trust fund _____________ 2,868 Railroad retirement accounts __________ 1,429 Federal employees retirement funds _____ 2,091 Highway trust fund __________________ 3,973 Advances, foreign military sales ________ 1,070 Veterans life insurance funds_ _________ 970 Other trust funds (nonrevolving) _______ 407 Trust revolving funds (table C-5) ________ 1. 143 21,650 2,268 5,064 3,163 1.415 2. 133 4,219 1,125 638 602 2,310 24,567 23,371 24,005 27,188 2,617 2,332 2,838 3,655 5,770 4,373 6,827 5,751 4,072 3,088 4,095 4. 119 1,376 1,629 1,791 1.611 2,262 3,105 3,452 3,638 4,203 4,455 4,379 4,805 1,078 1,330 1,150 1.400 559 736 752 744 426 416 277 380 990 -------- -------- ------- Subtotal__ _______________________ 39,275 lnterfund transactions __________________ -686 -641 -720 Total_ __________________________ 38,589 43,946 46,469 1_968 estimate 'estimate --------- ------ --- -----------------44,587 47,189 45,411 48,455 54,559 --------- -686 -641 -720 -------44,725 47,814 53,839 When trust funds are consolidated with Federal funds, as in the unified comprehensive budget, appropriate deductions must be made for expenditures and receipts between the two groups of funds. The unified comprehensive budget also offsets some of the above receipts against expenditures. The trust funds include a small group of trust revolving funds (see table C-5) which, like the public enterprise funds, are stated on a net basis in figures used elsewhere in the budget. The group includes the Federal Deposit Insurance Corporation, the three mixed-ownership enterprises, and several other business-type activities. Table C-5. TRANSACTIONS OF TRUST REVOLVING FUNDS (In millions of doll us) Applicable receipts Gross outlays Description 1967 1968 1969 1967 actual estimate estimate actual 8,531 2,186 2,616 9,693 2,474 1,351 1968 1969 estimate estimate - - - - - - - - - - - - - - - --Federal intermediate credit banks ________ Banks for cooperatives __________________ Federal National Mortgage Association ___ Civil Service Commission (employees' life insurance and health benefits) _________ Federal Deposit Insurance Corporation ___ All other trust revolving funds ___________ 7, 161 1,898 1. 288 6,692 1,703 481 8,067 1. 944 667 9,214 2,238 761 1,045 1,300 1,209 692 960 275 292 258 14 18 65 65 62 64 115 - - -- - -- - -- - -- - -- Total trust revolving funds ________ 11,031 14,370 14,860 9,887 12,061 13,870 -----------------Receipts from the public ________________ -------- -------- -------- (9,549) (11,481) (13,238) Receipts from other accounts ____________ -------- -------- -------(338) (580) (632) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 604 19 62 489 SPECIAL ANALYSES Balances available.-Trust fund balances, both open book balances with the Treasury and investments in U.S. securities are shown in table C-6. These balances are reserved to carry out the purposes of the trusts. Table C--6. TRUST FUND BALANCES (in millions of dollars) As of June 30 Description 1966 1967 1968 1969 actual actual estimate estimate Federal old-age and survivors insurance trust fund __ Federal disability insuranc~ trust fund _____________ Health insurance trust funds ________ ----· ____ ----·· Unemployment trust fund ____ . ___________________ Railroad retirement accounts _______________ .. _____ Federal employees retirement funds ________________ Highway trust fund ______________________________ Advances, foreign military sales ___________________ Veterans life insurance funds ______________________ Other trust funds: Nonrevolving _____________________ . ___________ Revolving ____________________________________ 19,872 1,686 851 9,300 4,181 16,795 244 754 7,061 23,401 1,948 1,813 10,504 4,363 17,811 725 762 6,827 25,756 2,518 2,500 11,460 4,577 19,130 885 787 6,942 28,377 3,556 3,557 12,467 4,991 20,507 1,487 857 7,126 815 4,102 684 4,428 461 4,773 450 5,099 Subtotal. _________________________________ Agency debt issuances of trust funds held by other trust funds (-) _______________________________ 65,661 73,267 79,789 88,475 -646 -550 -450 72,621 79,239 88,025 ---------- Total. _________ - - - -- - - - - -- ---- -- - ----- --- 65,661 Note.-The balances shown here cover the amounts on deposit with Treasury. and the U.S. securities held. In addition. certain funds have authority to obligate in advance of receiving money,. and to borrow from the public. The reconciliation is as follows: Balance available on an authorization basis _____ _ Unfinanced contract authorizations: Highway trust fund ________________________ _ Advances, foreign military sales_ ____________ _ Other ____________________________________ _ Undrawn authorizations to borrow: Federal National Mortgage Association _______ _ Banks for Cooperatives ____________________ _ Federal Intermediate Credit Banks __________ _ Unappropriated receipts: Available as needed. on an indefinite basis ____ _ Available for appropriation by Congress: Soldiers• Home __________________________ _ Highway trust fund ______________________ _ Agency debt issuances of trust funds held by other trust funds ________ --- - - - --- ---- - -- ---- _ - - - _ Balance available on a cash basis.________ 1966 78,801 1967 89,444 1968 95, 146 1969 102,990 -8, 801 -1, 974 -8 -9, 267 -2, 376 -12 -10, 049 -2, 576 -12 -10, 548 -2, 496 -813 -1, 267 -661 -3, 934 -1,073 -380 -2, 508 -878 -349 -2, 049 -648 -393 -2 41 37 25 26 108 235 107 721 108 882 108 I, 487 -646 -550 -450 65,661 72,621 79,239 88,025 The trust fund balances are affected by the transactions as follows ( in millions of dollars) : Balances, start of year. _______________________________________ _ Receipts _____________________________________________________ _ Agency debt issuances (other than to other trust funds) ___________ _ Total available__________________________________________ Outlays ______________________________________________________ _ Balances, end of year_ ________________________________________ _ Total application and balances .. __________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1967 1968 1969 65,661 72,621 47,814 2,750 79,239 53,839 1,416 44,725 824 111,210 123,185 134,494 38,589 72,621 43,946 79,239 46,469 88,025 111,210 123,185 134,494 490 THE BUDGET FOR FISCAL YEAR 196 9 BORROWING Agency debt.-The Tennessee Valley Authority has authority to borrow $1,750 million from the public. The Federal Housing Administration has an indefinite authorization to issue short-term debentures in connection with its settlements. The three mixedownership trust revolving funds all ha,·e authority to issue their own ?ebt instruments. A few funds in liquidation are retiring earlier debt issuances. Agency borrowing also takes the form of the sale of participation certificates in which buyers are purchasing a share in a pool of Government-owned loans (see Special Analysis E). Some Government enterprise debt is guaranteed by the Treasury; some is not formally guaranteed. Some agency debt is issued to other enterprises or trust funds, rather than to the public, and in some cases another fund may purchase or sell agency debt on the market. Table C-7 separates the agency debt on the basis of net issuances and holdings, as between the public and the Government-administered funds. Relation to Treasury borrowing.-The Treasury borrowing, often called the "public debt," includes both borrowing from the public and the issuance of debt instruments to trust funds and other Government-administered funds with balances available to invest. In a number of cases, Government enterprises obtain capital by borrowing from the Treasury, which is usually directed by the law to use the proceeds of public debt receipts (that is, its borrowing) to supply the funds to the enterprise. The enterprise borrowing that takes this form is included in the capital section of the balance sheets in the budget appendix, and is not included in the phrase "agency debt" as used herein. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 491 SPECIAL ANALYSES Table C-7. AGENCY DEBT ISSUANCES, NET (in millions of dollars) Description Transactions End 1969, _ _ _ _ _ _ _ _ _ _ _ _ _ _ , estimate outatand1967 1968 1969 ing actual estimate estimate --------------------1-----1-----1----- ----- Borrowing from the public: By public enterprise funds: Agriculture: Farmers Home Administration 1___ 419 Health, Education, and Welfare: Office of Education 1_______________________ 70 Public Health Service 1_____________________ - - - - - - - - Housing and Urban Development: Federal Housing Administration 2 ____________ 67 Public facility loans 1_______________________ 56 College housing loans 1_____________________ 419 Housing for the elderly 1____________________ ---------Federal National Mortgage Association 1 _____ 467 Treasury: Federal Farm Mortgage Corporation 2 _ * Veterans Administration 1 ____________________ 121 Export-Import Bank 1 _______________________ 779 Federal Home Loan Bank Board: Home Owners Loan Corporation 2 ___________ * Board revolving fund ______________________ Small Business Administration 1_______________ ---------293 Tennessee Valley Authority ___________________ 130 By trust funds: Federal National Mortgage Association _________ 360 Banks for cooperatives ______________________ 219 Federal intermediate credit banks _____________ 273 By general fund appropriation: Defense family housing ____________________________________ -77 Total. borrowing from the public. ___________ 456 190 68 ---------- 10 ---------- 57 54 935 40 359 * 456 865 *5 68 54 338 46 713 * 1,065 138 10 538 164 1.692 86 2,324 * 341 608 1,893 3,637 * *7 143 130 2 -57 170 729 715 1.843 240 714 690 236 490 6,162 1,547 4,324 -80 -83 1,872 3,596 6,293 3,805 26,902 181 219 130 530 Borrowing from other funds: By public enterprise funds: Agriculture: Farmers Home Administration 1 ____ Health, Education, and Welfare: Office of Education! _______________________ Public Health Service! _____________________ Housing and Urban Development: Federal Housing Administration 2 ___________ Public facility loans! ______________________ College housing loans 1_____________________ Housing for the elderly 1 ___________________ Federal National Mortgage Association 1 _____ Veterans Administration 1 ____________________ Small Business Administration! _______________ Tennessee Valley Authority ___________________ By trust funds: Federal National Mortgage Association ________ Banks for cooperatives _______________________ Federal intermediate credit banks _____________ 30 ---------- 32 ---------5 ---------- 62 5 -3 24 149 20 351 178 44 73 74 780 39 -16 -1 24 26 450 181 ---------- 224 78 157 2 20 197 249 772 504 303 102 -2 ---------- --------- -l00 450 450 100 -28 ---------- ---------- ---------242 ---------- --------196 Total, borrowing from other funds ___________ 1,479 1,155 792 3,594 Total, agency debt issuances 3 ______________ 5,075 7,448 4,597 30,495 Note.-Excludes borrowing from the general fund. Negative figures represent net retirement of debt. *Leas than $500 thousand. I 2 Certificates of participation in loans. Guaranteed by the Treasury (except for a small part of the HOLC obligations). In addition, debt of the D.C. Armory Board is guaranteed by Treasury: 1967 actual, $0: 1968 estimate, $0: 1969 estimate, $0: outstanding, end of 1969, eati mate, $20. 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 492 THE BUDGET FOR FISCAL YEAR 1969 INVESTMENTS IN U.S. SECURITIES The investment transactions of federally administered funds in the securities issued by the Government and its agencies are shown in table C-8. Table C-8. AGENCY INVESTMENTS IN U.S. SECURITIES (in millions of dollars) End 1969, Trana actions estimate Description outatanding 1967 1968 1969 actual estimate estimate Investment in public debt (issued by Treasury) : By public enterprise funds: Agriculture: Farmers Home Administration _____ ---------Commerce: Maritime Administration __________ 1 Housing and Urban Development: Federal Housing Administration _____________ 57 Public Housing Administration ______________ -8 Federal National Mortgage Association ______ 84 Export-Import Bank ________________________ 82 Federal Savings and Loan Insurance Corporation ______________________________________ 212 Veterans Administration _____________________ 54 By trust funds: Federal old-age and survivors insurance trust fund _____________________________________ 3,438 Federal disability insurance trust fund _________ 226 Federal supplementary medical insurance trust fund _____________________________________ 479 Federal hospital insurance trust fund __________ 406 Unemployment trust fund ____________________ 778 Railroad retirement accounts _________________ 62 Federal employees' funds _____________________ 775 Highway trust fund __________________________ 484 Veterans life insurance funds __________________ -492 Federal Deposit Insurance Corporation _________ 238 Bank for cooperatives ________________________ -1 Federal intermediate credit banks _____________ ---------All other ___________________________________ -32 Total, investments in public debt_ ___________ 250 ---------1 7 250 13 106 91 749 7 7 -13 528 349 964 -82 ---------- --------397 2,521 396 60 60 362 1,934 323 2,372 858 25,652 2,870 -143 862 770 -21 1. 134 186 57 265 -19 1,070 917 254 1,279 285 110 273 8 49 * II 45 317 3,124 11,718 4,364 20,285 1. 193 6,726 4,120 45 128 166 6,654 8,382 85,573 -I 6,840 Investment in agency debt: By public enterprise funds: Public Housing Administration ________________ Federal Housing Administration _______________ Federal National Mortgage Association ________ By trust funds: Federal National Mortgage Association ____ .. ___ Veterans Administration ___________________ . _ Federal hospital insurance trust fund __________ Federal old-age and survivors insurance trust fund_ Federal disability insurance trust fund _________ Unemployment trust fund ____________________ Civil service retirement and disability fund _____ Railroad retirement accounts __________________ -3 -12 -24 ---------- ---------- --------- 73 -3 -51 ---------- ---------I * 75 58 260 92 ---------- ---------159 304 248 159 240 70 84 173 379 159 248 304 159 240 111 ---------- ---------- --------392 92 711 469 636 7IO 510 Total, investments in agency debt'---------- 1,479 1.155 792 3,594 Total. agency investments in U.S. securities __ 8,319 7,810 9,173 89,167 Note.-Negative figures represent net reduction of investments. • Less than $500 thousand. l Excludes purchases of securities of the privately-owned Federal land banks and Federal home loan banks. Such purchases arc treated as a part of net lending to private enterprises. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSIS D INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS The United States, unlike some other governments, includes in its budget those outlays which are for "capital" or investment-type activities on the same basis as other or "current" activities and costs. Nevertheless, for a complete understanding of budget programs and levels, it is useful to recognize a distinction between those outlays which yield benefits over a period of years and those providing benefits largely in the year in which they are made. Special Analysis D presents the budget data in a manner that makes this distinction, covering both Federal funds and trust funds. In dividing budget outlays (i.e., including the expenditure account and the loan account) according to their character, two basic breakdowns are used: First.-Investment-type outlays are considered to be (1) those which add to the financial or physical assets of the Federal Government or add to State, local, and private assets and (2) those which are for "intangible" investments or developmental purposes, such as education, training, health, and research and development. All other outlays are considered as mainly for current operations; they are divided among current expenses for aids and special services, retirement and social insurance benefits, and other services and current operating expenses. (In addition, some outlays which cannot be properly categorized are left "unclassified.") Second.-ln each category, outlays for national defense purposes are reported separately from those for all other, i.e., civil programs; this separation highlights both (1) the difficulty of definition-e.g., whether to treat military outlays such as procurement of "hardware" as additions to assets-and (2) the basic difference in nature between most military and civil programs. The combination of Federal funds and trust funds in tables D-1 and . D-2, in accordance with the new budget concepts used throughout the 1969 budget, inflates certain of the figures because payments between Government funds and accounts have the effect-over the long run-of causing certain outlays to be counted twice; therefore, a deduction is made at the end of the table to remove the double counting for interfund and intragovernmental transactions. A second deduction is required under the new concept for receipts from the public which are business-type or market-oriented in character, and which are therefore applied against expenditures. Summary.-Excluding outlays for national defense, $31.4 billion of estimated outlays in 1969 are for activities which will directly or indirectly promote future gains in productivity and economic growth. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 493 494 THE BUDGET FOR FISCAL YEAR 19 6 9 CIVIL INVESTMENT AND DEVELOPMENTAL OUTLAYS (in billions of dollars) Description 1964 actual 1967 actual 1968 1969 estimate estimate - - - ---Additions to Federal assets: 1.5 6.2 8.1 5.4 -.4 3.0 5.1 -1.2 3.2 5.7 -.9 3.1 6.6 .1 3.1 6.9 1.6 6.2 7.9 8.8 Other __________________________________________ Other developmental outlays ________________________ 3.7 1.4 .1 5.1 I. 9 .2 4.6 2.2 4.5 2.4 TotaL _________________________________ - _- _- - 16.2 27.3 31.9 Loans and other financial investments ---Physical assets: Major commodity inventories _____ .. ________________ Other_ _____ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Addition to State, local, and private assets __ ·--------Developmental outlays: Education, training, and health _____________________ Research and development: National Aeronautics and Space Administration _____ .3 .3 31.4 Additions to Federal civil assets are estimated at $8.6 billion in 1969. This includes $5.4 billion in loans and financial investments for housing, farming, small business, and other purposes. It also inc1udes $3.2 billion for physical assets of various types-such as civil public works, major equipment, and commodity inventories. Another $6.9 billion of budget outlays in 1969 will help finance additions to State, local, and private assets such as highways, hospitals, schools, conservation projects, and a variety of public facilities. Developmental outlays for civil purposes are estimated at $16 billion in 1969, compared with $13.5 billion in 1967 and $6.8 billion in 1964. Thus, the 1969 budget continues a trend begun several years ago toward emphasizing investment in human resources and scientific research and development. No less important than investment in physical assets, this type of investment helps promote the long-run growth of the Nation by expanding knowledge, enhancing occupational skills, increasing productivity, and encouraging technological development. Outlays for civil education, training, and health programs will be $8.8 billion in 1969. Another $6.9 billion will be for scientific research and development (including $4.5 billion for space programs), representing a major source of funds for all such activities undertaken in the United States. OUTLAYS OF AN INVESTMENT NATURE Outlays of an investment nature are divided into three categories: (1) additions to Federal assets; (2) additions to State, local, and private assets; and (3) developmental outlays. Additions to Federal assets.-This category comprises additions to both financial and physical assets of the Federal Government. The financial assets consist mainly of direct loans-for example, loans to finance private housing construction and encourage homeownership, to help small businesses, to finance college dormitory construction, to aid farm ownership and operation, to finance rural electric and telephone systems, and to promote economic development abroad. All Federal financial assets a.re covered, both loans and other financial https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 495 SPECIAL ANALYSES investments which have been classified under the new budget concept in the expenditure account as well as loans in the loan account. (The specific distinction between the two types of loans is presented and discussed in Special Analysis E.) Other financial investments include the capital provided for certain international organizations and for supersonic aircraft development. Additions to physical assets include expenditures for public works, such as dam construction, flood control projects, and Federal power systems. They also include changes in major commodity inventories and outlays for major equipment (including military equipment) and for the acquisition and improvement of real property and other physical assets. Table D-1. SUMMARY OF INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (in millions of dollars) 1967 actual 1968 estimate 1969 estimate INVESTMENT-TYPE OUTLAYS Additions to Federal assets: Civil: Loans and other financial investments ___________________ _ Physical assets: Major commodity inventories_ .. _________ __________ _ Other. ___________ --··___________________ _____ .. ___ _ National defense ________________________________________ _ Additions to State, local, and private assets: Civil_ _________________________________________________ _ National defense ________________________________________ _ Developmental outlays: CiviL _________________________________________________ _ National defense ________________________________________ _ Subtotal, investment-type outlays: Civil_ ___________________________________________ _ National defense __________________________________ _ 6,207 8,062 5,398 -1,230 3,173 21,993 -859 3,094 23,743 52 3,102 24,242 5,721 II 6,649 II 6,905 12 13,456 8,923 14,950 9,063 15,951 9,702 27,325 30,927 31,896 32,817 31,408 33,956 23,156 1,841 29,048 24,148 1,737 33,430 25,301 2,006 37,783 13,524 4,208 39,030 14,497 4,606 43,427 15,349 4,779 45,478 CURRENT OUTLAYS Current expenses for aids and special services: CiviL _________________________________________________ _ National defense ______ .. _________________________________ _ Retirement and social insurance benefits---civiL ______________ _ Other services and current operating expenses: Civil: Interest______________________________________________ _ Other ________________________________________________ _ National defense ________________________________________ _ UNCLASSIFIED ITEMS Payments to other funds ___________________________________ _ 657 573 Allowances: Civilian and military pay increase ____________________________________ ---------Contingencies__ _ ___________ _________ ____________________ __________ 100 Undistributed intragovernmental payments: -1,913 Government contribution for employee retirement ( - ) _ . ___ _ -1,735 Interest received by trust funds ( - ) ______________________ _ -2,268 -2,639 lnterfund and intragovernmental transactions (-) ____________ _ -2,585 -2,863 Applicable receipts from the public (-) _____________________ _ -4,713 -4, 181 Total budget outlays_________________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 158,414 175,635 663 1,600 350 -2,007 -3,017 -3,217 -4,375 186,062 496 THE BUDGET FOR FISCAL YEAR 19 6 9 Additions to State, local, and private assets.-Federal outlays under this heading add to State, local, and private assets. Grants-in-aid which augment the physical assets of State and local governments are primarily for the construction of highways (mainly through the highway trust fund), hospitals, airports, waste-treatment works, watershed protection projects, schools in federally affected areas, and public facilities under regional economic development programs for depressed regions. Outlays which increase the value of privately owned assets are largely for the conservation and improvement of private farmland and water, for grants for construction of private nonprofit hospitals and other health facilities, and for construction subsidies to the merchant fleet. Developmental outlays.-Federal outlays of this type are principally for research and development, education and health, and other programs which increase the Nation's fund of knowledge and technical skills and improve the physical vigor of the population. The total of Federal outlays shown in this category does not fully reflect the Government's contribution to the productivity of the economy, since it excludes loans and additions to physical assets, as well as certain other programs which further this end. The latter are classified in accordance with their principal purpose; thus, veterans educational benefits are listed as veterans aids rather than as developmental outlays. Similarly, the training of military personnel or other Government personnel is treated as an operating expense and not as part of the Government's education and training programs. OUTLAYS OF A CURRENT NATURE Outlays of a current nature are divided into the following categories: (I) current expenses for aids and special services, (2) retirement and social insurance benefits, and (3) other services and current operating expenses. Current outlays for aids and special services.-Outlays classified under this heading provide aids or special services to certain groupsmainly in the year in which the outlays are made. In addition to such items as realized losses of the Commodity Credit Corporation on its farm programs, maritime operating subsidies, veterans pensions, and grants to foreign nations for economic and military assistance, this category includes (1) administrative and other operating expenses attributable to investment-type programs which benefit specific groups, and (2) the costs of maintaining the physical assets related to those programs. Only part of the Federal Government's aid to special groups is reflected in this classification, which is limited by definition to current expenses. For example, subsidies for the construction of private merchant ships are classified as additions to private assets. Similarly, outlays for which the Federal Government receives assets or collateral (as the acquisition of farm commodities by the Commodity Credit Corporation) are treated as additions to Federal assets. Many indirect Government aids are excluded from this classification either because https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSES 497 they are not reflected in outlays or cannot be readily measured. Examples of such indirect benefits include low interest rates on some loans and certain preferential tax treatments. Although outlays in this category essentially provide a direct aid or special service yielding immediate benefits, some of the items included contribute indirectly to the Nation's future development. Among these are grants for slum clearance and urban renewal. Retirement and social, insurance benefits.-This category applies only to trust funds. It covers benefit programs which (1) are financed from special taxes or contributions and (2) provide insurance against the loss of income due to unemployment, retirement, disability, or death. It does not include outlays for Government employees' health and life insurance expenditures which are in the form of premium payments to approved companies. Other services arid current operating outlays.-The outlays reported under this heading support a wide range of activities. They consist mainly of: pay and subsistence of military personnel; repair, maintenance, and operation of physical assets of the national military establishment and general purpose public buildings; conduct of foreign affairs; tax collection; payment of interest on the national debt; and operation and administration of other direct Federal programs not elsewhere classified. UNCLASSIFIED Certain transactions cannot be properly classified into any of the categories described above. The major examples of such transactions include special allowances for (1) the second stage of the pay increase enacted m 1967 for Government personnel and (2) unforeseen contingencies. They also include transactions which occur entirely within Government accounts and which therefore do not result in any flow of funds between the public and the Government. In addition, under the new budget concept, receipts from the public arising from marketoriented or business-type activities of the Government are applied against outlays to highlight the net impact of the budget. RELATIONSHIP TO CAPITAL BUDGET The U.S. Government does not produce a capital budget in the sense of a long-range program for the acquisition of assets, with separate financing of capital outlays. Some foreign governments and some State and local governments fund a portion of their capital expenditures by separate borrowing and exclude most or all such expenditures from their computation of budget totals, except for annual charges to amortize these capital outlays over a number of years. While not a precise measure of the difference between capital and current items, this analysis does provide useful general magnitudes. However, it does not make any allowance for depreciation and obsolescence on existing physical assets, anticipated losses on loan programs, or profit or loss on sales of assets at figures different from their book value, although agencies record such allowances for transactions only 300-000 0-68--32 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 498 THE BUDGET FOR FISCAL YEAR 19 6 9 where the data will serve program and management needs, as in the case of_ the public enterpri~e funds .. As a result, ~t. is not possible to determme directly from this analysis the net addit10n to the value of federally owned assets. Recoverability of outlays.-In general, Government outlays for assets are not expected to be recovered by specific revenues. However, most loans, investment in commodity inventories, the construction of powerplants, and outlays for range and forest improvements on public domain and national forest lands are offset in whole or in part by receipts to the Treasury through repayments and sales, specific charges, or recoveries. Where activities are carried on through revolving funds, such as in the case of most loan programs, receipts are credited directly against disbursements and only the difference is included in the total of outlays in the budget and in this analysis. All other receipts from the public arising from market-oriented or business-type activities of the Government are offset against total outlays. Whether recovered by specific revenues or not, investment and developmental outlays for both physical and human capital add to the wealth and income of the Nation and, by helping to expand the tax base, augment the Government's potential future revenues. However, this analysis does not attempt to measure the degree of recoverability of developmental outlays, the potential gain in public revenues which will be forthcoming from them, nor the duration of future benefits and their discounted present value. Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars) Description 1967 1968 1969 actual estimate estimate Investment-Type Oudays ADDITIONS TO FEDERAL ASSETS Loans: Civil: To domestic private borrowers: Department of Agriculture: Commodity Credit Corporation: Price support and related programs. ________________________________ _ Rural Electrification Administration _________________ _ Farmers Home Administration: Emergency credit revolving fund. _________________ _ Agricultural credit insurance _____________________ _ Rural housing insurance _________________________ _ Direct loans ____________________________________ _ Trust funds. ___________________________________ _ Department of Commerce: Industrial development loans and guarantees.. _______ _ Other____________________________________________ _ Department of Health. Education, and Welfare: Office of Education:: Higher educational activities _____________________ _ Higher education facilities loans fund ______________ _ Other __________________________________________ _ Public Health Service _____________________________ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -600 232 157 278 -546 360 4 -29 * -4 -9 -14 -3 21 -2 23 -9 29 -8 36 -7 41 75 20 5 43 73 27 5 45 -18 42 14 7 124 33 -79 -24 36 499 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 1969 actual estimate estimate Investment-Type Outlays-Continued ADDITIONS TO FEDERAL ASSETS-Continued Loans-Continued Civil-Continued To domestic private borrowers-Continued Department of Health, Education, and Welfare-Con. Social Security Administration: Federal old-age and survivors insurance trust fund __ Federal disability insurance trust fund _____________ _ Other trust funds _______________________________ _ Other ___________________________________________ _ Department of Housing and Urban Development: Renewal and housing assistance: College housing loans ____________________________ _ Housing for the elderly or handicapped ____________ _ Other _______ - ____ -- - ________ -- --- - - - ------ ----Mortgage credit: Federal Housing Administration fund ______________ _ Federal National Mortgage Association: Management and liquidating functions __________ _ Special assistance functions____ __________ _ Participation sales fund ____________ - - _- - __ - _- - - Secondary market operations trust fund _________ _ Other __________________________________________ _ Department of Labor: Unemployment trust fund _______ _ Veterans Administration: Veterans direct loans ______________________________ _ Loan guarantee revolving fund ____ -----------------National service life insurance trust fund _____________ _ United States Government life insurance trust fund ___ _ Other______________________ -··----- ___ - ____ - _- - - __ _ Civil Service Commission (trust fund) _________________ _ Farm Credit Administration: Banks for cooperatives trust fund ___________________ _ Federal intermediate credit banks trust fund _________ _ Federal Home Loan Bank Board ______________________ _ Railroad Retirement Board (trust fund) _______________ _ Small Business Administration: Disaster loan fund ________________________________ _ Business loan and investment fund __________________ _ Other agencies ______________________________________ _ Total, to domestic private borrowers, civiL __________ _ 114 ---------74 ---------15 ---------3 4 -114 -74 -15 4 163 77 5 142 89 17 116 98 19 17 62 113 421 367 639 109 147 ---------2,012 831 2 4 114 ---------- 52 410 -179 643 -1 -114 53 66 246 217 133 55 -2 82 4 5 114 ---------- 82 281 -15 -85 5 -114 249 193 500 478 -8 44 114 ----------6 36 74 78 45 20 238 533 -20 -114 3,534 5,077 -13 114 5 1,845 1----·1--- To State and local governments: Department of Commerce: Economic development_ ____ _ Dep~rtment of ~ealth, ~?1;1cation, and Welfare: Higher educational act1V1t1es ____________________ - __ _ Other ___________________________________________ _ Department of Housing and Urban Development: Renewal and housing assistance: Urban renewal fund _____________________________ _ College housing loans ___________________________ _ Other _________________________________________ _ Metropolitan development: Public facility loans _____________________________ _ Other _________________________________________ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 24 30 38 59 148 15 150 18 58 199 11 1 174 20 12 141 -15 56 7 41 -3 50 -6 500 THE BUDGET FOR FISCAL YEAR 1969 Table D--2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 1969 actual estimate estimate Investment-Type Outlays-Continued ADDITIONS TO FEDERAL ASSETS-Continued Loans-Continued Civil-Continued To State and local governments-Continued . General Services Administration: General Services Administration credit sales. _________ _ 1 2 -44 -40 -2 -1 -4 Lo~~~e;; Di;tri~t ~f -c~f;~b-i;=:::::::::::::::::::::::: I 20 17 64 Other agencies _____________________________________ _ 21 19 12 - - - - - -------1---Total. to State and local governments, civil. ________ _ 473 411 416 To foreign borrowers: Funds appropriated to the President: Economic assistance __ Department of Agriculture: Commodity Credit Corporation: Credit sales, Public Law 480 ___________________ _ Export-Import Bank of Washington ___________________ _ I, 147 1,041 1,163 153 540 428 716 680 675 Total, to foreign borrowers, civil. ___________________ _ 1,840 2,184 2,518 Total, loans, civil. ________________________________ _ 5,847 7,673 4,778 National defense: To domestic private borrowers: other agencies. ___________ _ -3 -2 -4 To foreign borrowers: Funds appropriated to the President: Military assistance___ __________ -20 Other agencies _______________________________________________________ - __ T otaf. to foreign borrowers, national defense _________________ . __ _ 6 11 -20 17 Total, loans, national defense _______________________ _ -3 -22 14 Total, loans ______________________________________ _ 5,844 7,651 4,792 54 44 120 Other financial investments-civil: I Investments in quasi-public institutions, trust funds, and in: ternational institutions: Funds app~opri~ted to the President: 61 Economic assistance__________________________________ Inter-American Development Bank____________________ 54 International Development Association.________________ 106 Other. _________________________________ .____________ 10 Department of Housing and Urban Development: Federal National Mortgage Association _________________________________ _ 145 Department of Transportation: Civil supersomc aircraft_ Other agencies_________________________________________ - 17 Total, investments in quasi-public institutions, trust funds and international institutions _______________________ _ 88 125 10 80 10 20 100 -8 28 351 -12 360 389 620 30 70 26 27 94 43 27 80 Public works-sites and direct construction: C~: ' Department of Agriculture: I Forest protection an1 utilization ______________ - - - - - - - - Forest roads and trails ________________________________ : Other 1 • ____________________________________________ j 1 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I 46 501 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 1969 actual estimate estimate Investment-Type Outlays-Continued ADDITIONS TO FEDERAL ASSETS-Continued Public works-sites and direct construction-Continued Civil-Continued Department of Defense-Civil: Corps of Engineers: Construction, general__ ____________________________ _ Flood control, Mississippi River and tributaries _______ _ Trust funds ______________________________________ _ Other 1 ______________________________ --------------Department of Health, Education, and Welfare: Public Health Service and other 1 __________________________ _ Department of the Interior: Bureau of Indian Affairs: Construction _____________________________________ _ Other ___________________________________________ _ National Park Service: Parkway and road construction _____________________ _ Other 1 __________________________________________ _ Bureau of Reclamation: Construction and rehabilitation _____________________ _ Upper Colorado River storage project. ______________ _ Other 1 __________________________________________ _ Bonneville Power Administration: Construction _____________________________________ _ Other 1 __________________________________________ _ Other ______________________________________________ _ Post Office Department_ _______________________________ _ Department of Transportation: Coast Guard: Acquisition, construction, and improvements_ Federal Aviation Administration ______________________ _ Other _____________________________________________ _ General Services Administration: Public buildings _________ _ National Aeronautics and Space Administration __________ _ Veterans Administration: Hospitals and other ____________ _ Tennessee Valley Authority ____________________________ _ Other agencies ________________________________________ _ 974 60 23 10 942 55 26 23 854 46 23 21 46 68 91 41 16 38 20 35 20 32 20 32 22 34 17 182 44 5 165 40 6 179 30 6 104 2 40 43 113 2 37 42 115 I 35 88 29 62 34 79 3 214 160 59 249 114 70 102 9 172 76 66 263 103 2,706 2,607 I. 623 161 1.538 245 * 239 289 60 183 122 2,752 Total, public works, civil__ ____ _ ----- National defense: Department of Defense-Military____ __ _. _ Atomic Energy Commission _________________ . ________ _ I. 601 130 -------,---- 1,731 I. 784 1.783 _ ___ ,_____ ----- - Total. public works, national defense _______ _ 4,483 Total, public works, sites and direct construction __ 4,489 4,391 ====I====--·--=~= Major commodity inventories: Civil: Department of Agriculture: Commodity Credit Corporation_ Department of the Interior: Helium fund ______________ _ -1,253 23 -884 26 31 21 1-----1--------· Total. major commodity inventories, civil__ ___ _ National defense: Other agencies _______ _ -1,230 -859 52 9 12 8 1-----1------ - - - - Total, major commodity inventories____________________ *Less than $500 thousand, 1 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -1,221 -847 60 .502 THE BUDGET FOR FISCAL YEAR 1969 Table D--2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 actual estimate 1969 I estimate 1---- Investment-Type Outlays-Continued 1 ADDITIONS TO FEDERAL ASSETS-Continued Major equipment: Civil: Post Office Deoartment_ ___ Department of Transportation: 55 127 118 , :1 65 :; 4 Ot~!~:g::::~---~: ::: : : : : : : : : : : : ::: : : : : : : : ::::::::::::: I ----:---Total, major equipment, civil__ ________________________ 163 23 I 31 218 1 I National defense: Department of Defense-Military 1 _____________________ _ Atomic Energy Commission ________________________ _ 19,498 152 21,295 150 21,785 165 1 Total, major equipment, national defense ____ _ i 19,650 21,445 Total, major equipment_ __________________ _ i 19,813 21.675 54 149 48 60 120 -8 41 34 -29 79 34 -21 -19 5 6 258 157 277 606 524 488 864 680 765 I I I 21,950 22,168 Other physical assets-acquisition and improvement: C~: I Department of Agriculture 1____________________________ _ Department of Housing and Urban Development_ ________ : Department of the Interior: Land and water conservation __ _ Other_ _______________________ _ Veterans Administration__________ _ Other agencies 1 _ _ _ _ _ ________ . _ _ _ _ ________ _ Total, other physical assets, civil__ ________ _ i 40 42 57 ----:---- National defense: Atomic Energy Commission __ _ Total, other physical assets-Acquisition and improvement_ _______________________ _ Total, additions to Federal assets __ ADDITIONS TO STATE, LOCAL, AND PRIVATE ASSETS 1=3=0,=1=44=1==3=4=,0=38=1=3=2,=79=6 I State and local assets: 1 Civil: Funds appropriated to the President: Appalachian regional redevelopment programs_ ________ _ Public works acceleration _____________________________ Department of Agriculture: , Watershed protection ________________________________ _ Rural water and waste disposal grants __________________ : Other_________________________________________ · Department of Commerce: Economic development: Development facilities and other ________ _ Appalachian development highway system ___ _ Department of Defense -Civil: Corps of Engineers __ Department of Health, Education, and Welfare: Office of Education: Higher educational activities _______________________ _ School assistance in federally affected areas ____________ ! Vocational education _______ - --- - - - - - - _- - - - - - - - - - - - -1 ,i • Less than $500 thousand, I Includes both Federal funds and trust funds, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I 127 I 219 19 121------- - 54 29 60 27 24 34 28 20 99 138 40 12 26 69 207 22 142 19 f!i 11 136 39 61 60 I 50 57 503 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 1969 actual estimate estimate Investment-Type Outlays-Continued ADDITIONS TO STATE, LOCAL, AND PRIVATE ASSETS--Continued State and local assets-Continued Civil-Continued Department of Health, Education, and Welfare-Continued Public Health Service: Hospital construction activities _____________________ _ 91 Construction of health educational facilities __________ _ 21 Community mental health resources support_ ________ _ 4 Other education and health __________________________ _I 26 Department of Housing and Urban Development: Ren~~a.l and housing assistance: Grants for neighborhood fac1hties _________________________________________ _I 1 Metropolitan development: Open space land programs _________________________ _i 19 Grants for basic water and sewer facilities ____________ - I 6 Urban mass transportation-_________________________ _ 41 Other metropolitan development_ ___________________ _ ---------Department of the Interior: Land and water conservation _________________________ _ 22 85 Construction grants for waste treatment works and other_ Other ______________________________________________ 9 ! Department of Transportation: Federal Aviation Administration_______________________ _ 64 Federal Highway Administration: Highway trust fund _______________________________ 3,951 Forest highways __________________________________ 28 State and community highway safety programs _______ _ I Other •- _________________________________________ _ II Other agencies 1 ______________________________________ _ * 104 63 25 48 95 65 25 26 15 32 60 60 90 96 130 144 3 ---------56 112 16 74 154 28 58 73 4,191 4. 171 ---------- --------70 26 2 4 6 27 Total, State and local assets, civil_ ____________________ _ 4,797 5,630 5,939 National defense: Other agencies 1________________________ _ 10 10 12 Total, State and local assets __________________________ _ 4,807 5,640 5,952 -- Private assets-civil: I Department of Agriculture: Soil conservation ______________________________________ _I 144 141 Agricultural stabilization and conservation _______________ _I 440 420 Other 1 _______________________________________________ _ -4 -7 Department of Commerce: Merchant ships _________________ _ 86 82 Department of Health, Education, and Welfare: I Office of Education: Higher educational activities _________ _I 89 58 Public Health Service: • Construction of health educational facilities ____________ 8 25 Hospital construction activities________________________ 112 104 Grants for construction of health research facilities_______ 37 37 Other education and health_____________________________ 13 17 National Science Foundation ______________________________ , 58 60 Other agencies ___________________________________________ ·, _ _ _2 _ ~ -I Total, private assets, civiL ____________________________ I • Less than $500 thou .. nd. 1 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 143 416 -4 71 61 25 117 37 22 52 25 9241~1--~~ 504 THE BUDGET FOR FISCAL YEAR 196 9 Table D-2. INVESTMENT, OPERATING, AND OTiiER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 1969 actual estimate estimate Investment-Type Outlays-Continued ADDITIONS TO STATE, LOCAL, AND PRIVATE ASSETS-Continued Private assets--Continued National defense: Atomic Energy Commission trust fund_____ I 1 * ----1-----1---- Total, private assets__________________________________ 925 1,020 967 ====l====I==== Total, additions to State, local, and private assets________ 5,732 6,650 6,918 ====f====t==== DEVELOPMENTAL OUTLAYS Education, training, and health: Civil: Funds appropriated to the President: 838 Economic opportunity program________________________ 1,066 Appalachian regional development_ ____________________ 1_________ _ 1 Department of Agriculture: Extension service 1_ _ _ _ _ _ _ _ _ _ _ _ 93 90 Department of Health, Education, and Welfare: Office of Education: Elementary and secondary educational activities __ 1,423 1,266 School assistance in federally affected areas____ __ 341 400 Higher educational activities ___ . 250 422 Vocational education __ 166 188 Libraries and community services_ 33 78 Defense educational activities __ .. __ . 182 202 34 Educational improvement for the handicapped __ 24 Education professions development activities_ Salaries and expenses __ _ 38 36 Other_ __ _ 33 53 Public Health Service· * Comprehensive health planning and services __ _ 72 National Institutes of Health ____ . __ . . __ . 61 73 Mental health research and services __ 93 122 Indian health activities_____ ___ __. 79 73 47 Health manpower education and utilization ___ . I 60 57 Chronic diseases __ . Community health services ___ _ 43 65 Air pollution ___ _ 14 29 Communicable diseases ___ . 35 22 * 15 Community mental health resources support__ .. _. Other'__ __ __ __ 192 211 Social and Rehabilitation Service: Grants to States for public assistance and medical assistance_______________________________________ 1, 173 1,761 Grants for rehabilitation services and facilities_________ 207 298 Grants for maternal and child health and welfare______ 179 214 Rehabilitation research and training__________________ 31 40 Social services demonstrations training and projects ______________________ . - . Other_____________________________________________ 24 34 Other 1 _ _ _ _ __ _ _ __ _ _ __ _ __ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 23 40 Department of the Interior: Bureau of Indian Affairs: Education and welfare ________ _ 95 96 Other_ __________________ -_- - - - - - - - - - - - - - - - - - - - - - - - - 8 13 Department of Labor: Manpower Administration: 275 444 Manpower development and training. - - - - - - - -- -- - - - - - - 1 31 21 I Other I • Leu than $500 thousand. • Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,236 1 97 1,408 385 550 187 120 8 55 57 45 77 110 90 95 90 90 17 52 27 27 25 157 2,121 364 249 42 30 43 69 121 13 430 32 505 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 1969 actual estimate estimate Investment-Type Outlays-Continued DEVELOPMENTAL OUTLAYS-Continued Education, training, and health-Continued Civil-Continued National Science Foundation __________________________ _ Other agencies 1_______________________________________ _ Total, education, training, and health, civil__ _____ _ National defense: Atomic Energy Commission ______________ _ Total, education, training, and health_ 136 42 145 56 159 71 6, 1631 7,849 8,751 18 ---,-7•:-------,8 6,181 7,866 8,769 35 9 53 JO 58 10 137 56 38 22 141 58 39 22 146 62 42 21 26 38 25 44 27 41 66 84 91 795 16 94 841 24 120 908 53 116 21 15 JO 21 22 II 25 34 II Research and development: Civil: Funds appropriated to the President: Economic opportunity program________________ _____ _ Other ______________________________________________ _ Department of Agriculture: Agricultural Research Service _________________________ _ Cooperative State Research Service ____________________ _ Forest Service. _____________________________________ _ Other 1••• _________________________________________ _ Department of Commerce: National Bureau of Standards ________________________ _ Other _____________________________________________ _ Department of Health, Education, and Welfare: Office of Education: Research, training, and other ______ _ Public Health Service: National Institutes of Health _______________________ _ Air pollution _____________________________________ _ Other ____________________________________________ _ Social and Rehabilitation Service: Rehabilitation research and training _________________ _ Other ___________________________________________ _ Other ______________________________________________ _ Department of the Interior: Geological Survey ___________________________________ _ Bureau of Mines 1___________________________________ _ Federal Water Pollution Control Administration ________ _ Other 1 ____________________________________________ _ Department of Transportation: Federal Aviation Administration ______________________ _ Federal Highway Administration: Highway trust fund ___ _ Other transportation 1_______________________________ _ National Aeronautics and Space Administration 1 _________ _ Veterans Administration _______________________________ _ National Science Foundation __________________________ _ Other agencies 1 ______________________________________ _ 32 30 15 72 34 34 30 95 36 35 40 106 46 23 17 5,131 44 209 61 44 27 44 4,641 45 240 73 40 31 60 4,496 48 257 91 Total, research and development, civil__ _______________ _ 7,057 6,819 6,885 325 44 110 7,160 JO 328 50 95 7,200 II 325 2 45 7,800 12 National defense: Department of Defense-Military: Military personnel __________________________________ _ Operation and maintenance __________________________ -1 [:I:~~~~~~!~~l~p~~~~•: t;st, ~~~ ~~~!~~~i~~:-~ ~ ~ ~: ~ ~ ~ ~ ~ ~ ~ I Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 506 THE BUDGET FOR FISCAL YEAR 1969 Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description I Investment-Type Outlays-Continued I 1967 1968 actual estimate 1969 estimate I i DEVELOPMENTAL OUTLAYS-Continued Research and development-Continued National defense-Continued Atomic Energy Commission ____ - - - - -- ---------------- - 1,256 Total. research and development, national defense _______ 8,905 Total, research and development __________ -----------Engineering and natural resource surveys -civil: Department of Commerce ____________________ ----------Department of Defense--CiviL __________________________ Department of Housing and Urban Development ____________ i Department of the Interior: ' Gco~ogical Survey 1______ --- -- ------- -- - - - - -- - ------National Park Service__________________________________ 1,500 9,046 9,684 15,962 15,865 16,569 26 22 22 28 29 31 31 31 46 50 36 54 43 60 45 !! :: I I i---- I :~ engineering and natural resource surveys __________ i___2_3_6-:----28_2_ ,____3_1_5 Ot~!~~g:~~i;s_ 1___ : Total, 1,362 ' ~::::::::::::::: :: : : : : : : : :: :: : : : : : : : : : : Total, developmental outlays __________________________ 1_2=2=•=37=9=l==24=,=0=14=lc=2=5=,6=5=3 Current Outlays CURRENT EXPENSES FOR AIDS AND SPECIAL SERVICES Agriculture-civil: Department of Agriculture: Consumer and Marketing Service: Removal of surplus agricultural commodities ________ _ Other 1 ____________________________________________ _ Foreign Agricultural Service _______________ . ____________ I Agricultural Stabilization and Conservation Service: ' Expenses______________ _______________________ _ ~~~:~ tct_ _ _ -_::::::: _--------::_--::-: :::-:--:::::: I Commodity Credit Corporation and special export programs: I Transfer to supplemental stockpile_ __ ___________ ' Price support, and related programs___ _______________ _ National Wool Act_______ ______________ _ Other ____________________________________________ _ Rural Electrification Administration 1 __________ . _________ , Farmers Home Administration: Salaries and expenses_____ __________________ _ Direct loans and other 1 _____________________________ _ Other _____ -------- -- -- - - - - - - - - - - - - - - - - - - - - - - - -----Farm Credit Administration: Federal Intermediate Credit Banks trust fund __________ _ Other 1 ____________________________________________ _ Other agencies ___ - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - 1 145 7 21 175 8 25 178 8 26 132 82 140 86 1 144 87 33 3,760 35 -9 12 25 3,398 64 -1 13 1 3,313 63 -2 13 52 -60 62 59 58 3 88 77 -11 1 7 -36 -8 -54 -2 4 * 5 ---- Total, agriculture_ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - i • Les, than $500 thousand. Includes both Federal funds and trust funds. I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4,269 ==== * 4,040 I i ' 3,918 507 SPECIAL ANALYSES ---------------------------------------~ Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued 1968 1969 estimate estimate 36 38 41 182 18 62 207 47 88 211 115 140 -21 298 150 -20 -94 308 298 513 554 2 62 20 58 358 597 7 54 66 16 27 47 22 24 36 16 20 Total, business, civil__ _______________________________ _ 1,860 I, 819 National defense: Funds appropriated to the President: Expansion of defense production _______________________ _ -102 22 146 Total, business _____________________________________ - , I, 758 I, 841 I, 684 II 86 620 31 15 664 41 34 1967 Description I actual Current Outlays-Continued CURRENT EXPENSES FOR AIDS AND SPECIAL SERVICES--Continued Business: Civil: Department of Commerce: Patent office ________________________________________ I Maritime Administration: I Ship operating subsidies and other __________________ _ Federal ship mortgage insurance escrow trust fund ____ _ Other 1 ____________________________________________ _ Department of Defense-Civil: Corps of Engineers-Operation and maintenance ________ _ Other_ ____________________________________________ _ Post Office Department_ _______________________________ _ Department of Transportation: Coast Guard: Navigation aids and other 1 _____________ _ Federal Aviation Administration: Operations ___________ _ Other 1 ___________________________________________ _ Civil Aeronautics Board: Payments to air carriers ________ _ Small Business Administration: Business loan and investment fund __ . _________________ _ Other ______________________________________________ _ Other agencies 1 _____________________________________ _ -21 474 Labor-civil: Department of Health, Education, and Welfare: Work incentive activities ___________________________________________________ _ Department of Labor: Unemployment trust fund ______________________________ _ 584 Other _________________________________________________ I 20 Other agencies _________________________________________ _ 12 Total, labor_ ____ _ 616 Homeowners and tenants-civil: Department of Housing and Urban Development: Renewal and housing assistance: Urban renewal_ _____________________________________ _ College housing loans ________________________________ _ Low-rent public housing program ______________________ _ Other_ _____ - - - - - - - - - - - - - -- - - - - - - - - - - ---- - - - - - - - - - - - Mortgage credit: Federal Housing Administration _______________________ . Secondary market operations trust fund ________________ _ Other ______________________________________________ _ Other ________________________________________________ _ Federal Home Loan Bank Board __________________________ _ Other agencies __________________________________________ _ 75 86 I 1,538 824 677 ====:,==== 1 1 500 370 -4 17 280 14 257 -3 -126 -24 -16 2 -201 3 -149 -43 5 I 1 -389 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -214 -25 39 19 -380 ----------1--------- Total, homeowners and tenants ________________________ l===25=9=l====23=6=1 l 700 69 335 16 557 508 THE BUDGET FOR FISCAL YEAR 1969 Table D--2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)--Continued Description 1967 1968 1969 actual estimate estimate Current Outlays-Continued CURRENT EXPENSES FOR AIDS AND SPECIAL SERVICES---Continued Veterans-civil: Department of Health, Education, and Welfare: Payments for military service credits______________________________ Veterans Administration: Compensation and pensions _____________________________ . Readjustment benefits ________ . _________________________ Medical care_______________________________________ General operating expenses______________________________ National Service Life Insurance trust fund________________ United States Government Life Insurance trust fund_______ Veterans reopened insurance fund ________________________ ' ~;t~a~-s-~~~c!~~ 105 4, 302 292 1, 272 176 671 , 84 -34 ~~~~- ~~s_u_r~~-c~-f-~~~::::::::::::::::::::: i -~~ 105 105 4, 606 518 1, 336 190 509 75 -35 4, 654 618 1, 413 199 576 83 -35 -~~ - ~~ 0th e~:::l~::::r~~::::::::::::::::::::::::::::::::::::::: i,==6=,9=:=:=l===7=,3=:=: 1==7=,6=:=~ I International aids: Civil: Funds appropriated to the President: Foreign economic assistance 1 _________________________ _ Peace Corps 1 _______________________________________ , Department of Agriculture: Commodity Credit Corpora- ' tion and special export programs: Credit sales, Public Law 480__________________________ Commodities disposed of and other costs incurred in connection with donations abroad and other______________ Export-Import Bank of Washington__________________ , Other agencies _________________________________________ i ! 1, 118 110 1, 102 112 1. 104 108 917 462 322 381 -104 36 425 -144 42 442 - 110 42 1-----1-----1---- 2, 445 Total, international aids, civil_ _______________________ _I 1, 999 1, 924 ''-----'.-----1---- National defense: Funds appropriated to the President: Military assistance______________________________ 873 5701· Advances, military assistance trust fund________________ 1, 070 I, 125 , Department of Defense-Military: Construction ___________ i 20 Other agencies ________________________________________ j- ___________________ 1 __________ 519 1, 330 25 - 14 ,---- Total, international aids, national defense _______________ ! 1,943 1,715 1,860 Total, international aids ____________ _ 4.388 3.714 3.784 I Other aids and special services-civil: Funds appropriated to the President: Disaster relief_________________________________________ Economic opportunity program 1 ________________________ I Appalachian regional development_ - - _- - - - - - - - - - - - -- - - -- - 1Depart_ment_ of Agriculture: I Special milk program ___________________________________ 1 Food stamp· program___________________________________ ~chool lunch program_ _________________________________ Department of Health, Education, and Welfare: ' Public Health Service: Hospitals and medical care ___________________________ _ Other _____________________________________________ _ * Less than $500 thousand. Includes both Federal funds and truat funds. I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis =-1 45 722 3 36 696 3 96 114 208 102 ' 178 220 102 238 246 61 42 61 43 66 35 53 I 598 - - - - - - - - - ! 50~ SPECIAL ANALYSES Table 0-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 1969 actual estimate estimate Current Outlays-Continued CURRENT EXPENSES FOR AIDS AND SPECIAL SERVICES-Continued Other aids and special services-civil-Continued Department of Health, Education, and Welfare-Continued Social and Rehabilitation Service: Grants to States for public assistance and maintenance payments __________________________________ _ 3, 002 3, 436 Coordination and development of programs for the aging_ 7 13 Assistance to refugees in the United States ____________ _ 27 29 Demonstration projects and training _________________ _- ---------- ---------Work incentive activities ____________________________ _- ------ - - 4 Other_ 8 9 Social Sernrity Administration: 1,280 Payment to trust funds for health insurance for the aged_ 950 Payment for special benefits for the aged ______ _ -- - - - --Federal supplementary medical insurance trust fund ____ _ 135 139 89 83 Federal hospital insurance trust fund_ 452 333 Federal old-age and survivors insurance trust fund_ 98 112 Federal disability insurance trust fund __ Other 1 _ _ _ _ _______ _ 29 19 Department of Housing and Urban Development: Model cities programs and other_ 66 35 Department of the Interior: 74 88 Bureau of ln-:lian Affairs and other 1_ 140 174 ln.'ian tribal func's (trust) Post Office Department_ ___ _ 605 557 D,partment of Transportation: Fe,,eral Highway Administration: 22 73 Landscaping, scenic enhancement, and beautification ____ _ 4 14 Other 1 Other 1 _ _ _ _ __ _ _ ____ _ 8 3 Other agencies I ________________________________________ _ 86 88 2, 963 26 34 558 33 31 1,360 226 164 94 443 129 35 303 99 119 634 78 20 II 104 Total, other aids and special services, civil_ ____________ _ 6,797 8,041 8,886 Total, current expeniu for aids and special services ____ _ 24,999 25,885 27,309 I, 473 1,328 1,656 3,865 23,711 2,521 1,392 RETIREMENT AND SOCIAL INSURANCE BENEFITS Insurance benefits-ciYil: Department of Health, Education, and Welfare: t Federal supplementary medical insurance trust fund _______ _ Federal hospital insurance trust fund ____________________ _ Federal old-age and survivors insurance trust fund ________ _ Federal disability insurance trust fund ___________________ _ Railroad Retirement Board (trust fund) ___________________ _ 664 2,508 18,886 1,861 1,257 Total, insurance benefits _____________________________ _ 25, 176 29,030 33, 145 Unemployment benefits~civil: Department of Labor: Unemployment trust fund _____________________________________ _ 2,072 2,455 2,451 'Less than $500 thousand. Includea both Federal funds and trust funds. 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3,369 20,742 2,118 .510 THE BUDGET FOR FISCAL YEAR 196 9 Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 1969 actual estimate estimate Current Outlays-Continued RETIREMENT AND SOCIAL INSURANCE BENEFITS-Con. Other retirement and social insurance bene6ts-civil: Civil Service Commission: Civil Service retirement and disability trust fund _____________________________________ _ Other trust funds _______________________________________ _ Total, other retirement and social insurance benefits_____ 1 1•7891 1. 9321· 2. 174 11 _ _ _ 12____1_3_ i 1,800 == I 1,944 I 2, 187 1_ _ _ Total, retirement and social insurance benefits _________ _ 29,045 33.430 1 I Repair, maintenance and operation of physical assets (excluding special services) : , I Civil: Department of AS!riculture: Forest Service ___________ _ Department of Defense-Civil: Corps of Engineers and other _______________________________________ _ Department of the Interior: Bureau of Land Management_ ________________________ _ National Park Service ________________________________ _ Bureau of Reclamation ______________________________ _ Other 1____________________________________________ _ General Services Administration: Public buildings _________ _ Tennessee Valley Authority ____________________________ _ Other agencies 1_______________________________________ _ 192 I 195 175 63 88 98 42 31 61 53 301 -172 41 32 35 64 56 -147 38 622 641 661 18,923 151 101 19,720 152 119 22,221 158 129 36 I 27 52 45 283 -119 41 Total. rep!"i~, maintenance and operation of physical assets, c1v1L ______________________________________ _ National defense: Department of Defense-Military: Operation and maintenance ___________________________ _ Family housing _____________________________________ _ Atomic Energy Commission ____________________________ _ Other agencies ________________________________________ _ Total. repair, maintenance and operation of physical assets, national defense ____________________________ _ *I Total, repair, maintenance and operation of physical assets __________ - - -- - _ ___ - - - - - - - - - -- - -- - - - - ~ Othe':r~_d_u_c_ts _tr~~~ _f~~-~-- ~:::::: ::::::::::::::::::::::: I Department of Health, Education, and Welfare: · Food and Drug Administration and other ____ _ • Less t ban $500 thousand. I Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I * I 19,175 19,991 19,797 20,631 22,508 87 94 101 80 86 87 77 90 102 29 4 32 4 32 48 51 52 i I The Judiciary ______________ . ___________________________ _ i Department of Agriculture: Agricultural Research Service ________________________ - __ _ Consumer and Marketing Service: I Protective, marketing, and regulatory programs ________ _ Expenses and refunds, inspection and grading of farm ,I 309 *i I Regulation and control-civil: i 37.783 1=~-=1==== OTHER SERVICES AND CURRENT OPERATING EXPENSES I 23,169 5 511 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollara)-Continued Description 1967 1966 1969 actual estimate estimate Current Outlays-Continued OTHER SERVICES AND CURRENT OPERATING EXPENSES-Continued Regulation and control--4:ivil--Continued Department of Justice: Legal activities and general administration _______________ _ 77 Federal Bureau of Investigation ________________________ _ 185 Immigration and Naturalization Service _________________ _ 80 Bureau of Prisons 1 ___________________________________ _ 55 Proposed legislation for control of crime _________________ _ 1-------3( Department of Labor: Wage and labor standards and other ____ _ Department of Transportation: Coast Guard _________________________________________ _ 36 Federal Aviation Administration ________________________ _ 44 Other ______________ - - - - - - - - - - - - - - - "- - - - --- --- -- - - - - - - - ---------Federal Deposit Insurance Corporation trust fund ___________ _ -239 Interstate Commerce Commission _________________________ _ 27 National Labor Relations Board __________________________ _ 30 Other agencies 1 _________________________________________ _ 138 Total, regulation and controL ________________________ _ 81 ! 195 I 82 58 10 35 88 206 86 61 33 37 37 48 5 -261 24 32 145 44 52 6 -274 24 35 160 787 850 939 Other operation and administration: Civil: International activities: Department of Justice: Alien property trust fund _______ _ Department of State: Administration of foreign affairs 1 ___________________ _ International organizations and conferences 1 _________ _ Educational exchange 1 ____________________________ _ Other 1 ________ - - - _ - - - - - - - - - - - - - - - - - _ - - - _ - - --- ___ Foreign Claims Settlement Commission: War claims trust fund and other_ ___________________________________ _ United States Information Agency ____________________ _ Other agencies 1 _____________________________________ _ 2 4 53 201 108 49 11 211 118 47 7 220 124 47 3 21 165 14 200 171 26 II 180 20 Total, international activities _______________________ _ 572 782 657 Federal financial activities: Legislative branch: General Accounting Office __________ _ Treasury Department: Bureau of Accounts _______________________________ _ Bureau of Customs ________________________________ _ Bureau of the Public Debt_ ________________________ _ Internal Revenue Service __________________________ _ Other_ ___________________________________________ _ Other agencies 1 _____________________________________ _ 49 54 58 34 79 52 662 35 5 36 82 53 688 33 5 46 89 61 760 32 5 Total, Federal financial activities ____________________ _ 915 951 1,052 176 199 206 112 12 108 9 114 9 Other direct Federal programs: Legislative branch 1 _________________ - - - - - - - - - ---- - - -- - I Department of Commerce: , Environmental Science Services Administration _______ _ Other_ __________________________________________ - - I 1 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 512 THE BUDGET FOR FISCAL YEAR 1969 Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued Description 1967 1968 1969 actual estimate estimate Current Outlays-Continued OTHER SERVICES AND CURRENT OPERATING EXPENSES-Continued Other operation and administration-Continued Civil-Continued Other direct Federal programs-Continued Department of Defense-Civil_ _______________________ _ Treasury Dei:;artment: Bureau of Accounts 1 ___________ _ General Services Administration 1 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___ _ Civil Service Commission: Salaries and expenses and other___ ______________ ___ _ Civil Service retirement and disability trust fund _____ _ Employees life insurance fund trust fund _____________ _ Employees health benefits fund trust fund _________ _ __ __ _ _ _____ _ Other agencies 1 _ _ _ _ _ _ _ _ _ _ _ _ _ Total. other direct Federal programs___ __ ___ Retirement, unemployment, and accident compensation for Federal employees: Department of Labor: Unemployment compensation for Federal employees and ex-servicemen _______________________________ _ Employees compensation claims and expenses ________ _ Department of Transportation: Coast Guard: Retired pay_ Civil Service Commission: Special payments and annuities_ Other agencies ______________________________________ _ 61 6 166 60 49 126 65 8 110 18 176 -69 -19 50 36 189 -63 -21 63 -68 -25 69 691 705 767 79 57 45 111 91 56 44 113 92 53 54 114 40 190 I; Total, retirement, unemployment, and accident compensation for Federal employees __________________ _ Shared revenues and grants-in-aid: Department of Agriculture: Forest Service______________ Department of the Interior: Bureau of Land Management________________________ Other_____________________________________________ Treasury Department: Bureau of Customs _________________________________ i Internal Revenue Service___________________________ District of Columbia: Federal payment_________________ Other agencies_______________________________________ Total, shared revenues and grants-in-aid ________ .____ 4 7 8 295 311 322 43 45 48 71 73 47 54 62 27 59 58 21 29 65 81 21 29 67 81 22 326 367 383 72 1-----1-----1---- T otal, other operation and administration, civiL ______ National"defense: Department of Defense-Military: Military personnel __________________________________ _ Operation and maintenance __________________________ _ Family housing _____________________________________ _ Civil defense ________________________ - - -- -- --- -- ---- Other 1 ____________________________________________ _ Selective Service System _____________________________ - _Other agencies 1 ______________________________________ _ 2,800 3, 116 3, 180 19,462 33 265 78 21,472 30 290 69 1,491 61 22 22,445 60 302 61 12 -64 58 22 64 26 1-----1-----1---- 1 Total, other operation and administration, national defense _____________________________ - - - - - - - - - - - - -- 19,855 23,436 22,970 Total, other operation and administration ______________ _ 22,654 26,552 26,150 Includes both Federal funds and trust funds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 513 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER BUDGET OUTLAYS (In millions of dollars)-Continued 1967 actual Description 1968 estimate 1969 estimate Current Outlays-Continued OTHER SERVICES AND CURRENT OPERATING EXPENSES-Continued Interest: On the public debt__ ___________________________________ _ 13,391 Other interest: On refunds: Treasury Department_ ______________________________ _ 120 General Services Administration____________ __ --- -----On uninvested funds: Treasury Department ______________ _ 13 14,350 15,200 134 I * 13 I ------·· 137 * 12 ------ Total, other interest_ ________________________________ _ 133 147 149 Total, interest_ _______________________ - _____ - ___ - __ - - 13,524 14,497 15,349 56,762 62,530 Total, other services and current operating expenses ___ _ i UNCLASSIFIED I 65,60 6 ! I Payments to other funds 1 _________ • __________ • _____ _ 657 ! 573 Allowances for: Civilian and military pay increase __________________________ ,_________ _ - -- - - - - - - Contingencies _____________________________________ - ___ - -1- --- -----100 Undistributed: -7,415 lnterfund and intragovernmental payments ___ _ --1 -6,589 Applicable receipts from the public ____________ _ -----------1 -4,i13 -4.181 663 i l 1,600 350 -8,240 -4,375 i----1--- Total, budget outlays _________________________________ ! 158,414 *Less than $500 thousand. I Includes both Federal funds and trust funds. ,300-000 0-68-----43 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 175,635 186,062 SPECIAL ANALYSIS E FEDERAL CREDIT PROGRAMS INTRODUCTION Federal credit aids-direct loans and insurance or guarantees of private loans-play a major role in Government programs for: (a) improvement of housing and encouragement of homeownership; (b) development of agricultural and other natural resources; (c) assistance to economic development and military preparedness abroad; (d) promotion of business, especially exports, transportation, and small business generally; (e) redevelopment of communities and regions; and (f) aid to higher education. Federal Credit Programs New Commitments 20 10 0 0 1958 1959 Fiscal Ycan 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 Estimate Over the past decade the overall level of Federal credit assistance has doubled, a rate of increase comparable to the rise in the gross national product. During the same period many existing programs have been broadened and new programs initiated to meet emerging needs. On the other hand, other programs established for temporary reasons in earlier years are liquidating their operations as outstanding 514 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSES 515 loans are repaid or privately refinanced. Moreover, as private investors accumulate experience with ongoing programs, they often refinance outstanding Federal loans or directly finance the new credit requirements of borrowers. Federal credit programs help borrowers to help themselves. In several programs, the credit aids are part of a package of Federal assistance. Such a package sometimes also includes, for example, grants to provide necessary public facilities for depressed areas; grants for work-training, education, and other types of community action to help combat poverty; technical aids to help underdeveloped countries plan and construct basic transportation systems; or management advice to help rural residents plan, develop and operate their farms economically and productively. ScoPE OF SPECIAL ANALYSIS This analysis (a) summarizes the 1967-1969 trends in Federal credit programs, (b) indicates the relationship between the credit programs and the overall budget totals, and (c) discusses certain subsidy aspects of credit programs. The 1969 analysis includes for the first time information on the level and trends of all Federal credit programs. It comprises not only those operated by wholly owned Government agencies, but also those administered by mixed-ownership corporations and trust funds. Both currently active programs and programs in process of liquidation are included. The principal disbursements and repayments of most, but not all of the direct Federal loans covered by this analysis are included in the loan account; the specific appropriation accounts which finance these programs are separately identified in Part 5. In addition, in line with the recommendations of the President's Commission on Budget Concepts, two specific types of direct loan programs, accounting for about 15% of new commitments, are reflected in the expenditure account; these programs comprise (a) foreign loans made largely on noncommercial terms, and (b) other loans where the terms of the loan contract make repayment in certain respects contingent rather than mandatory. As in previous years, the analysis includes both direct Federal loans and Federal guarantees and insurance of loans made by private lenders. It excludes all borrowing operations of Federal agencies, whether from the Treasury or the public. Pursuant to the recommendations of the Commission on Budget Concepts, sales of certificates of participation in loans by the Export-Import Bank and by the Federal National Mortgage Association as trustee for several agencies are treated as borrowing. Sales and retirements of such certificates are shown in table E-6, but the transactions otherwise are excluded from the analysis. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 516 THE BUDGET FOR FISCAL YEAR 19 6 9 In addition, contrary to the practice followed in previous years, the analysis is confined to loans made and repayable in dollars and, therefore, excludes significant amounts of loans, mainly some of those made by the Agency for International Development, which are repayable in foreign currencies. 1 This exclusion facilitates reconciliation with other budget totals. The 1969 analysis covers credit programs administered by: nine departments and 10 other agencies. The estimates for 1968 and 1969 include credit aid authorized by legislation enacted during the past year. 2 The analysis also reflects the impact on credit programs of proposed legislation (a) authorizing a new export expansion program by the Export-Import Bank; (b) broadening Federal assistance for existing programs of student loan insurance; (c) revising the formulas governing interest rates on college housing and academic facility loans; (d) authorizing a flexible ceiling for interest rates on insured or guaranteed housing loans; (e) accelerating the transfer of the secondary market operations of the Federal National Mortgage Association to private ownership; (f) creating two new cooperative banks for rural electric and telephone loans; (g) authorizing federally insured loans to Indians; and (h) extending authority to make credit sales of military equipment. NEW COMMITMENTS New commitments are the best single measure of the short-run trends in most Federal credit programs. They also give the best advance indication of trends in the financing impact of these programs, since changes in the level of new commitments usually precede corresponding changes in the volume of loans disbursed by either public agencies or private lenders and in the purchase of goods and services by the ultimate borrowers. In this analysis, commitments are defined as approvals by Federal agencies of direct loans or of insurance or guarantees of private loans. They are shown on a gross basis, including administrative reservations, commitments which do not later result in actual credit extensions, and the unguaranteed portions of loans partially covered by Federal guarantees. 1 Data on loans repayable in foreign currency is contained in table M-6 in Special Analysis M. 2 See summary on pp. 527-528 for further details. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 517 SPECIAL ANALYSES Table E-1. NEW COMMITMENTS FOR FEDERAL CREDIT PROGRAMS CLASSIFIED BY TYPE OF ASSISTANCE AND ACCOUNT (in milliona of dollars) 1967 actual Agency or program Direct loan• 1968 e1timate Guaranteed and insured Direct loans Joana 1969 e1timate Cuaranteed and insured Joana Direct loana Guaranteed and insured loans -------------EXPENDITURE ACCOUNT Fun~~ approp~iated to the President: Military assistance ___________________ Economic assistance __________________ Department of Agriculture: Commodity Credit Corporation ___________________ Department of Health, Education, and Welfare _____________________________ Other programs ________________________ 65 1,190 289 59 72 996 190 315 61 1,459 235 303 1,417 166 2,112 354 2,180 400 -------- 2367 -------- 2487 ------------------------------ -- - - - -- - - --Total, expenditure account. _______ 2,899 514 3,422 3,955 938 859 - - - - - - - - - - - - - - - --LOAN ACCOUNT Office of Economic Opportunity __________ Department of Agriculture: Commodity Credit Coration ________ Rural Electrification A inistration ____ Farmers Home Administration _________ Department of Commerce: Economic Development Administration_ Maritime Administration______________ Department of Health, Education, and and Welfare _________________________ Department of Housing and Urban Development: Federal National Mortgage Association __ Federal Housing Administration ________ Public housing loans __________________ College housing loans _________________ Urban renewal loans __________________ Housing for the elderly loans __________ Public facility loans __________________ Department of the Interior ______________ General Services Administration. _________ Veterans Administration: Housing loans and guarantees __________ Insurance policy loans ________________ District of Columbia ____________________ Export•l:iftt Bank____________________ Farm Cr it Administration: Banks for cooperatives. _______________ Federal intermediate credit banks •• ., ___ Federal Home Loan Bank Board _________ Small Business Administration ___________ Other agencies or programs______________ Purchase of obligations of federally sponsored enterprises. 220 7 32 --·----277 -------472 -------sos 822 75 7 104 209 ·------- -------- 2,436 -------676 9,991 23 443 300 ----77f 177 84 -------30 -------24 8 39 -------529 161 77 2,661 1,815 6,999 66 357 28 850 2,831 --------Tiro---------------------132 96 29 --------------- 161 470 -------458 817 72 7 140 157 476 -------- 3,874 -------667 12,657 985 52 200 -------869 211 85 -------- so -------29 -------539 155 119 2, Ill 2,101 8,349 12 429 17 6 45 4,005 --------------1,446 18 220 470 435 ------------------870 86 9 166 157 165 -------- 1,651 ------415 14,238 67 1,265 300 ------886 214 85 ------40 ------17 11 -------- ------592 165 144 2,440 4,350 ------------2,076 2,370 -------------- 9,481 -----------------3is" --·-459" ----365 12 12 __ .., ____8 -------- -------- -------- --------- --- --- --- - Total loan account. ______________ 18,903 16,371 20.34, 21,783 19,840 24,408 --- - - Grand totaL __ ····--····--------121, 802116, 885 123, 768122, 642 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23,795 25,346 518 THE BUDGET FOR FISCAL YEAR 1969 Direct loans.-New commitments of $23.8 billion for direct loans in 1969 are unchanged from the revised estimates for 1968, but roughly $2 billion higher than the actual commitments made in 1967. Over the 2-year period, the largest increases are anticipated in short-term credit provided by the Federal intermediate credit banks and the Banks for Cooperatives in the loan account, and in commodity loans and longterm export sales credit by the Commodity Credit Corporation in the expenditure account. These three credit aids alone account for well over half of the direct loan commitments projected for 1969. On the other hand, mortgage purchase commitments by the Federal National Mortgage Association for the account of the Government are expected to be sharply lower, because legislation is proposed both to lift the statutory ceiling on interest rates, encouragmg broader private credit extension, and to transfer the secondary market operations to private ownership. Guarantees and insurance.-New commitments of $16.9 billion in 1967 for guarantees and insurance of private loans were at the lowest level since 1961. This was primarily attributable to the sharp decline in housing construction-aggravated by the unattractiveness of investment in federally insured or guaranteed loans at the fixed statutory ceilings on interest rates. Total commitments, however, are expected to reach a record level of $25.3 billion in 1969. Increases in commitments for mortgage insurance by the Federal Housing Administration ($4.2 billion), and in housing loan guarantees by the Veterans Administration ($1.5 billion) account for the great bulk of the estimated expansion. Other substantial increases are anticipated in guarantees of foreign loans by the Export-Import Bank ($0.9 billion) and in low-rent housing loans underwritten in the public housing program ($0.8 billion). Disbursements and repayments.-Gross disbursements for direct loans have the most immediate impact on the budget. In long-established programs, or in programs involving short-term loans, however, the cash outflow required for such disbursements usually is largely or wholly offset by repayments on the outstanding portfolio of loans. This is true for most of the credit extensions by the Federal intermediate credit banks, the banks for cooperatives, the Farmers Home Administration and the Commodity Credit Corporation, as well as for the interim financing of public housing and urban renewal projects. On the other hand, long-term loans, such as those to finance construction of college housing and academic facilities or rural electrification and telephone systems, as well as purchases of mortgages to help finance residential housing, have a major net impact on the budget, since repayments usually fall short of new loans. This is expecially t'rue for rapidly expanding programs, such as the ExportImport Bank. Moreover, while in some previous years substantial sales of outstanding loans have augmented repayments, the current outlook is for sales of only $0.2 billion in 1968 and 1969. Federal guarantees and insurance of private loans ordinarily have only minor and indirect budget consequences. Principal disbursements of Federal funds normally occur only when the borrower defaults, or https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 519 SPECIAL ANALYSES in a few programs when holders of such insured loans exercise their repurchase options. $ Billions 25;:- Federal Loan Account , Net Lcndin9 -2.51958 1959 1960 1961 Fiscol Years 1962 1963 1964 1965 1966 1967 1968 1969 E.timate In accordance with the recommendations of the Commission on Budget Concepts, both the budget as a whole and this analysis segregate and treat separately net lending- the excess of principal disbursements over collections of all credit programs in the loan account. The gross data on disbursements are also adjusted to reflect writeoffs, losses, and recoveries. As a result, the net lending in any year equals the change between the loans outstanding in the loan account at the beginning of the year and the total outstanding at the year end. The same principles are followed in deriving the gross and net loan expenditures for credit programs in the expenditure account. As a result, the net loan disbursements for all credit programs in the loan account and for most of the credit programs in the expenditure account are identical with the outlays shown as "loans" in the "additions to Federal assets" category in Special Analysis D. 1 The only exceptions are for those programs in the expenditure account not financed through revolving funds, where repayments are individually recorded in miscellaneous receipts, rather than netted against expenditures. Omission of these repayments in Special Analysis D causes the total of "additions to assets" in that analysis to exceed the net loan disbursements in this analysis by $467 million, $177 million, and $223 million in 1967, 1968 and 1969, respectively. 1 See table D-2 on pp. 498-500. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 520 THE BUDGET FOR FISCAL YEAR 19 6 9 TableE-2. DISBURSEMENTS AND REPAYMENTS FOR FEDERAL CREDIT PROGRAMS CLASSIFIED BY TYPE OF ACCOUNT (in millions of dollars) . 1967 actual 1968 eati mate 1969 eati mate Agency or program Dia• buraementa Repay• menta Dia• bune- Repay• ments ment1 Dia• bunemenh Repay• ments --- ------------ EXPENDITURE ACCOUNT Funds appropriated to the President: Military assistance 1•••••••••••••••••• Economic assistance .................. Department of Agriculture: Commodity Credit Corporation ................... Department of Health, Education, and Welfare............................. Treasury Department 1•••••••••••••••••• Other programs ........................ Total, expenditure account. ... ____ . LOAN ACCOUNT 43 66 34 1,064 84 1,376 2,085 2,072 1,458. 2. 140 * 238 11 222 14 velopment: Federal National Mortgage Association .. Federal Housing Administration .. _.... Public housing loans. _________________ College housing loans. ________________ Urban renewal loans.. ________________ Housing for the elderly loans._. __ .. ___ Public facility loans. _________________ Department of the Interior ... ___________ General Services Administration.. ________ Veterans Administration: Housing loans and guarantees __________ Insurance policy loans. _______________ District of Columbia ____________________ Export.Import Bank._._. ______________ Farm Credit Administration: Banks for cooperatives ________________ Federal intermediate credit banks ______ Federal Home Loan Bank Board _________ Small Business Administration. __________ Other agencies or programs ______________ Purchase of obligations of federally sponsored enterprises _____________________ * ------238·8 416 12 109 14 6 ------I, 191 94 2,030 * 5 151 14 --2,823 2,622 3,416 1,720 3,591 2,288 ------------------ Oflice of Economic Opportunity. _______ .. _ 32 Department of Agriculture: Commodity Credit Corporation._._._ .. 277 Rural Electrification Administration. ___ 412 Farmers Home Administration. ____ ..• _ 1,231 Department of Commerce: Economic Development Administration. 34 Maritime Administration .... _.. ______ -------- °Well::~~ -~~ -~~~I~~. ~-~c_a_t~~~~ -~~~ Department of Housing and Urban De- 54 43 I, 169 8 29 12 18 15 15 180 I, 188 161 470 1,426 190 192 1,526 220 550 1,352 196 190 1,358 58 5 4 9 -------- 88 3 73 1,766 662 154 391 607 78 59 28 38 405 641 144 543 I 3 3 40 3,513 658 220 350 470 90 522 252 29 45 26 * 55 85 537 155 36 627 1,645 1,815 6,999 53 280 1,622 6,520 146 I, 167 45 9 212 33 55 2, IOI 8,349 12 410 17 7 8 72 8 -------I 87 4 495 1,669 405 220 564 594 200 34 295 453 475 I 100 4 54 4 16 46 -------- 225 97 39 929 600 165 108 1,680 1,852 2,370 7,849 9,481 20 -------296 421 20 12 850 -------- -------- -------- -------- 292 235 38 444 2 4 4 41 238 IOI 43 1,005 2,132 8,948 20 320 I6 882 - - - - - - - - - - - - - ---- --- Total, loan account. ______________ 17,787 12,611 20,869 15,091 20,372 17, I06 --------------Grand total__ ____________________ 20,610 15,233 24,285 16,811 23,963 19,394 *Le11 than $500 thou ■ and. All 1969 transaction• of the Foreign military aalea fund are shown in a Treasury liquidation I account. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSES 521 Over the 1957-66 decade, net lending for all Federal programs in the loan account ranged from a high of $3.8 billion in 1966 to a low in 1963 when repayments exceeded new loan disbursements by $0.1 billion. The actual net lending in 1967 and the net lending now estimated for 1968 is at record levels, $5.2 billion and $5.8 billion, respectively. A sharp cutback to $3.3 billion is now forecast for 1969. This reflects predominantly the $1.8 billion reduction in net mortgage purchases by the Federal National Mortgage Association. Loan disbursements in the expenditure account also are expected to substantially exceed repayments-by $1.7 billion in 1968 and $1.3 billion in 1969. This is partly because most loans for foreign economic assistance permit deferment of principal repayments during the early years. OUTSTANDING DIRECT AND GUARANTEED LOANS The best index of the level of Federal credit programs over a period of years is pro" ided by the total outstanding direct and guaranteed loans. By the close of 1969, these will amount to $156.9 billion in the loan account and an additional $19.4 billion in the expenditure account-or a gross total of $176.2 billion. Outstandi~g direct loans in the loan account (including loans pooled as collateral for certificates of participation) will rise by an estimated $9 billion over the 2-year period-almost half of this because of the $4.1 billion increase in the total FNMA portfolio. Other major increases are estimated for the Export-Import Bank ($1.4 billion) and the Federal intermediate credit banks ($1 billion), as well as in college housing loans, VA housing loans, and REA loans. An additional $3 billion rise is anticipated between 1967 and 1969 in the direct loan portfolios in the expenditure account. Most of this occurs in foreign assistance credits of the Agency for International Development, long-term export sales credit by the Commodity Credit Corporation, and repayable cai>ital contrioutions to student loan funds by the Department of Health, Education, and Welfare. Outstanding guaranteed and insured loans in both accounts will rise from a total of $99.5 billion at the end of 1967 to $117.1 billion in 1969. Housing loans insured by the Federal Housing Administration or guaranteed by the Veterans Administration or in the low-rent public housing program account for two-thirds of this increase. Other major increases are expected in loans insured by the Farmers Home Administration ($1.6 billion), the Export-Import Bank ($0.9 billion), the Commodity Credit Corporation ($0. 7 billion), and the urban renewal program ($0.7 billion). The amounts shown include both the guaranteed and unguaranteed portion of outstanding loans in order to give a more complete picture of the economic impact of these programs and to tie in better with banking statistics. Thus, they do not indicate the estimated contingent liability of the Federal Government. The major program for which the contingent liability differs materially from the principal amount of the loans is the veterans loan guarantee program; by the end of 1969, the Government's liability will be $17.6 billion lower than the amount of guaranteed loans outstanding under that program. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 522 THE BUDGET FOR FISCAL YEAR 1969 Table E-3. OUTSTANDING DIRECT LOANS, AND GUARANTEED AND INSURED LOANS FOR FEDERAL CREDIT PROGRAMS CLASSIFIED BY TYPE OF ACCOUNT (in millions of dollars) 1967 actual Agency or program Direct loans Guar- anteed and insured 1968 eati mate Direct loans loans 1969 eati mate Guaranteed and inaured Guar- Direct loans loan• anteed and insured loan• ------ ------ --EXPENDITURE ACCOUNT Funds appropriated to the President: Military assistance 1 __________________ Economic assist.I.nee __________________ Department of Agriculture: Commodity Credit Corporation ___________________ Department of Health, Education, and Welfare _____________________________ Treasury Department 1 _________________ Other programs ________________________ 43 6,074 218 237 23 7,055 388 552 6 8,152 235 1,085 1,021 1,698 1,375 1,808 1,775 959 -------- I, ?96 -------- 1,434 ------4,686 -------- 4,577 -------- 4,461 463 168 ------184 -------177 -------- - - - - - - - - - - - - - - --- Total, expenditure account_ _______ 13,031 LOAN ACCOUNT 854 1,476 14,727 2,315 16,030 3,327 --------- ------ --- Office of Economic Opportunity __________ 90 ------70 -------87 -------Department of Agriculture: Commodity Credit Corporation ________ 288 ------265 -------294 -------Rural Electrification Administration ____ 4,506 -------- 4,785 -------- 5,146 ------2, 123 3,260 Farmers Home Administration _________ 2,229 1,636 2, 129 2,505 Department of Commerce: 26 309 244 17 Economic Development Administration_ 191 II Maritime Administration ___ . __________ 796 85 93 669 562 l01 Department of Health, Education, and Welfare _____________________________ 641 320 476 236 164 -------Department of Housing and Urban Development: Federal National Mortgage Association __ 7,403 -------- 10,421 ---- ---- 11,527 ------812 60,361 Federal Housing Administration ________ 699 56,538 635 54,197 7,299 Public housing loans __________________ 73 88 6,394 68 5,772 College housing loans __________ ._. ____ 2,606 -------- 2,923 -------- 3,180 ------2, 609 Urban renewal loans __________________ 335 I, 921 304 2,271 286 412 ------Housing for the elderly loans __________ 314 -------225 -------Public facility loans __________________ 360 ------3IO -------269 -------25 Department of the Interior. _____________ 203 16 192 170 12 25 87 45 General Services Administration __________ 128 174 -------Veterans Administration: 2,878 35,151 Housing loans and guarantees __________ 2,203 31,537 2,515 33,203 878 ------Insurance policy loans ________________ 814 -------756 -------261 ------District of Columbia ____________________ 197 -------180 -------2, 727 Export-Import Bank ____________________ 4, 151 5,543 I, 904 I, 790 4,868 Farm Credit Administration: Banks for cooperatives _______ . ________ 1,302 -------- I, 551 -------- I, 790 -----Federal intermediate credit banks ______ 3,547 -------- 4,047 -------- 4,580 -----121 -----Federal Home Loan Bank Board _________ 141 -------149 -------1,588 703 1,486 515 Small Business Administration ___________ I, 373 355 I88 81 Other agencies or programs ___________ . __ 203 85 232 88 Purchase of obligations of federally sponsored enterprises __ . _________________ . 882 -------- -------- -----882 -------- -- - - - - - - - - - - - -43,070 113,811 98,024 39,804 104,756 --------------59,100 117, I38 Total, loan account. _________ . ____ 34,026 Grand total.. ____________ . ______ . 47,057 99,500 54,531 l07, 071 1 All 1969 transactions of the Foreign military sales fund are shown in a Treasury liquidating account. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL ANALYSES 523 INTEREST RATES AND MATURITIES Two of the major ways in which Federal credit programs help achieve program objectives are by providing more favorable interest rates or maturities than many borrowers can obtain from other sources. Table E-4 summarizes the current range of interest rates charged by the various major credit programs on direct loans (or prevailing on insured or guaranteed loans) and the customary maturities for both direct and insured and guaranteed loans. These terms are on newly committed loans by currently active programs, and do not necessarily correspond to those on outstanding loans, or on loans covered by commitments made in earlier years. Interest rates charged on direct loans vary both among the various Federal credit agencies and sometimes among the various types of loans made by a single agency. Many of the differences in rates reflect mainly differences in the cost of providing the loan (including the cost of borrowing the necessary funds), of administering the several types of loans and of incurring the varying degrees of risk of probable loss. In many cases, the rate charged is governed by statutory limits or formulas. Frequently, these are intended to assure loans at rates below those prevailing in the private market or below the cost to the Government, in order to provide special assistance to particular groups of borrowers as a method of accomplishing Federal program objectives. In some cases, the rates charged reflect mainly Government borrowing costs in earlier periods, rather than current market yields of Government obligations. Interest rates charged on insured and guaranteed loans tend to correspond more closely to market rates of interest on comparable loans by private lenders-allowing for the reduction or removal of the normal private credit risk. In a few cases, however, interest rates on insured loans are set below the market rate and a secondary market is provided to assure the willingness of the private lender to originate the loans. The Federal Housing Administration, for example, was authorized in the Housing Act of 1961 to insure certain types of loans to finance moderate-income housing at rates well below those prevailing in the private market (currently 3%), and the Federal National Mortgage Association purchases all of such mortgages. In other cases, the Federal agency pays part of the interest costs necessary to obtain private financing, for example, for insured student loans made by private lenders under the Higher Education Act of 1965. Maturities, both on direct and on insured or guaranteed loans, often are substantially more liberal than on private loans of similar types. Private lenders are often limited by law or supervisory policy to shorter maturities. When a Federal agency insures or guarantees the loans, however, these limitations customarily do not apply. Lenders can, safely, extend their loan maturities and borrowers can take advantage of lower periodic installments to acquire assets yielding income or tangible benefits over a long period of years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 524 THE BUDGET FOR FISCAL YEAR 196 9 Table E-4. INTEREST RATES AND MATURITIES FOR MAJOR ACTIVE CREDIT PROGRAMS CLASSIFIED BY AGENCY OR PROGRAM, DE- CEMBER 1967 Direct loans Guaranteed and insured loans Agency or program Interest rate (percent) Maturity (years) Interest Maturity rate (years) (percent) EXPENDITURE ACCOUNT Funds appropriated to the President: ~~ ~:!i~~~i::!!fs~~~:~~ ============================ Department of Agriculture: Commodity Credit Corporation. ___________________________________________ _ Department of Health, Education, and Welfare ________ _ 0-6 3-10 '3½ 0-5¾ (2) ¾-5¾ 5-40 1-11 3½-6¼ 6-7½ 3½ 4-10 5-25 ½-1 --------- -------- LOAN ACCOUNT Office of Economic Opportunity ______________________ _ Department of Agriculture: Commodity Credit Corporation ____________________ _ Rural Electrification Administration ________________ _ Farmers Home Administration. ____________________ _ Department of Commerce: Eco'?~mic Dev~l?pme'?t Administration _____________ _ Maritime Adm1mstrat1on __________________________ _ Department of Health, Education, and Welfare ________ _ Department of Housing and Urban Development: Federal National Mortgage Association _____________ _ Federal Housing Administration ____________________ _ Public housin.g loans ______________________________ _ College housing loans _____________________________ _ Urban renewal loans ______________________________ _ Housing for the elderly loans _______________________ _ Public facility loans _______________________________ _ Department of the Interior: (Reclamation loans) _______ _ General Services Administration ______________________ _ Veterans Administration: Housing loans and guarantees ______________________ _ Insurance policy loans ____________________________ _ District of Columbia ________________________________ _ Export-Import Bank ________________________________ _ Farm Credit Administration: Banks for cooperatives ____________________________ _ Federal intermediate credit banks __________________ _ Federal Home Loan Bank Board _____________________ _ Small Business Administration _______________________ _ 47~ 4-7 2 3-5 47H¾ 6 3-6 3-6 5),:;:-6 2½-5½ 3 2%-5),~ 3 4¼-4½ 0-3),~ 6 4-6% 4 0-5½ 6 4¼-6 4J,H% 4-7% 3-5½ 15-30 --------- -------½-5 --------- -------35 --------- 1-50 4-67f '"•"3~40 5-40 9-25 6-8 0-40 6 6 5-10 25 (2) 25-40 --------- -------33-6 20-40 20-40 ½-40 0-40 2%-4% 40-50 --------- -------½-34 0-34 2%-5),~ 30-50 --------- -------- 10-40 ----------------1-30 --------- --------------- 5),H¾ 7-30 22-50 7-30 (4) 0-40 1),H0 -------- --------- ---------------- -------- 6-10 ½-7 1-20 --------- -------1-7 --------- -------1-25 --------- -------- 1-30 3--8 1-30 When commodity loan is repaid by forfeiting collateral. no interest is charged. On student loans, maturities begin when student leaves school and exclude periods of military or Peace Corps service. 3 In addition. property improvement loans are insured for 4-5% discount per year (equivalent to over 8% simple interest), and with maturities of 6 months to 7 years. • Indefinite. 1 2 Unlike most other programs, Government outlays on credit programs are largely or wholly repayable with interest, so that the ultimate net cost is normally low. Some programs are fully selfsupporting; in most others, income from interest payments or insurance and guarantee fees covers most of the current expenses, and sometimes provides reserves for future losses. But a substantial number of loan programs contain an element of subsidy, e.g., by https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 525 SPECIAL ANALYSES lending at more favorable interest rates than the cost of money to the Government and/or at rates inadequate to defray the administrative expenses of the program or to establish an adequate reserve for probable future losses. The Commission on Budget Concepts has recommended: (a) "That the full amount of the interest subsidy on loans compared to Treasury borrowing costs be reflected and specifically disclosed in the expenditure account of the budget, and furthermore, that it be measured on a capitalized basis at the time the loans are made"; and (b) "That effective measures be developed to reflect (in the expenditure rather than the loan account of the budget) the further subsidy involved in the fact that Federal loans have a larger element of risk than Treasury borrowing. This should be done by creation of allowances for losses and making appropriate credits to those allo,vances and charges to expense as new loans are extended." As the Commission recognized, these recommendations will require extensive further study and consultation to develop the information and methods necessary to place them in force. While it is not possible in this budget to present reliable data on the amounts of "subsidy" involved, a preliminary review indicates that of the roughly $20 billion in new commitments for loans estimated for the fiscal year 1968 by loan programs in the loan account, three-fourths are being made at interest rates of 5% or higher. However, the great bulk of the estimated new commitments of $3.4 billion in direct loan commitments by programs in the expenditure account are made at lower rates of interest and/or with terms "·hich give the borrmrnr considerably greater option on the timing and extent of interest and/or principal payments. GOVERNMENT-SPONSORED CREDIT PROGRA~IS Three major groups of Government-sponsored, privately mnied institutions administer credit programs. The operations of the Fedeml land banks and of the Federal home loan banks are not reflected in the budget totals, but detailed schedules and explanatory statements nre printed as annexed budgets in Part III of the Appendix. The operations of the Federal Reserve banks have no direct effect 011 Table E-5. OUTSTANDING LOANS FOR MAJOR GOVERNMENT-SPONSORED CREDIT PROGRAMS (in millions of dollars) - - - - - - - - -------- Outstanding at end of- Agency I Farm Credit Administration: Federal land banks ____ Federal Home Loan Bank Board: Federal home loan banks ________________________________________ Federal Reserve, Board of Governors: Federal Reserve banks _________________________________ 1966 1967 1968 1969 actual actual estimate estimate 4,725 5,304 6,069 6,860 6,783 4,302 4,600 5,600 530 204 (I) (1) I T otaL ______________________________________ - 12,038 9,810 ----------1------- --------- t Estimates are not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ---- 526 THE BUDGET FOR FISCAL YEAR 196 9 budget totals, but payments of excess Federal Reserve profits are regularly made to the Treasury and these \\·ill continue to be treated as budget receipts in line \\·ith the recommendations of the Commission on Budget Concepts. The Federal land banks anticipate a continued rapid expansion, amounting to $2.1 billion over the 3-year period, in outstanding loans made through the nearly 700 Federal land bank associations. The Federal home loan hanks, after the rapid repayment of advances during 1967, now expect a net expansion of $1.3 billion in outstanding advances over the next 2 years. Outstanding discounts, advances, and acceptances of the Federal Reserve banks declined by $0.3 billion during 1967. CERTIFICATES OF PARTICIPATION IN FEDERAL LOANS For several years the Export-Import Bank and the Federal National }.fortgage Association, as trustee for five departments and agencies, have been pooling blocks of direct loans and selling certificates of participation in such pools. Receipts from these sales not only have provided private financing for the specific programs involved, but also under previous budget concepts have been treated as offsets to budget expenditures, comparable to the proceeds from direct sales of individual loans. TableE-6. SALES AND RETIREMENTS OF CERTIFICATES OF PARTICIPATION IN FEDERAL LOANS (in millions of dollars) l 967 actual 1968 estimate 1969 estimat Agency or program Sales Retire- Sales Retire- Sales Retire- ment ments ments -------------1--- ------------- Depart!Il~nt of_ Agriculture: Farmers Home Admm1strat1on ____ . _. _____ ____ _______ 600 _______ _ 675 -------I Department of Health, Education, and Welfare: Office of Education .. _. __________ .. ___ 103 _. ______ I 10105 -------Public Health Service _________________________________ I Department of Housing and Urban Development: 49 Federal National Mortgage Association._ 740 49 605 College housing loans .. ______________ . 600 _______ _ 1,385 -------Housing for the elderly loans.__________ _______ _ 60 -------Public facility loans________________ ___ 80 ____ .... I 80 -------Veterans Administration. ____ ._________ __ 260 61 61 765 Small Business Administration___________ 520 70 I 70 315 1 j 180 --------i------------ --------1----- Subtotal, trusts administered by FNMA_______________________ 2,900 Export-Import Bank ____________________ 1,329 Total.. ________________________ . 500 4,229 1,205 I40 13 500 65 - - - - 2 80 82 600 213 200 I I 180 4.000 180 3,150 I 630 ~~~~--2~ 730 5,300 615 4,000 I 872 In this budget, in accordance with the recommendations of the Commission on Budget Concepts, sales of participations are treated as means of financing the loan portfolio, i.e., agency borrowing, rather than sale of assets. Table E-6 summarizes the trends in sales and retirements for the six departments and agencies involved. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 527 SPECIAL ANALYSES SUMMARY OF LEGISLATION AUTHORIZING NEW FEDERAL CREDIT PROGRAMS AND BROADENED The following summary lists all legislation authorizing new Federal credit programs or revising existing programs in major respects enacted during the last session of Congress. It excludes simple extensions in expiring laws and increases in funds for continuing programs. I. Department of State-Agency for International Development and Department of Defense A. Foreign Assistance Act of 1967-Public Law 90-137 (1) Revises interest rates for Development Loan Fund and Alliance for Progress loans, and criteria for DLF loans; (2) revises standards for investment guarantees and basis for determining interest rates, (3) transfers the military sales fund at the end of the fiscal year 1968 from the Department of Defense to the Treasmy Department to discharge outstanding liabilities and obligations arising out of pre,·ious credit sales agreements; and (4) limits guaranteed military sales credit extended in 1968 and terminates authorities for sales and guarantees as of June 30, 1968. ' II. District of Columbia A. District of Columbia Federal Payment Authorization and Borrowing Authority Act of 1967-Public La,v 90-120 Provides broader and more flexible formula to govern Federal loan authorization to the D.C. General Fund (capital outlay). B. Amendments to the Act of June 12, 1960-Public La,,· 90-84 Forgives half of outstanding debt on the Dulles Interceptor sm,-er line. III. Farm Credit Administration Amendments to the Federal Farm Loan Act and the Farm Credit Act of 1933-Public Law 90-204. Removes statutory interest ceiling on loans made by Federal land banks and banks for cooperatives, and makes related adjustments in other interest rates. IV. Small Business Administration and Office of Economic Opportunity A. Small Business Act Amendments of 1967 and Small Business Investment Act Amendments of 1967-Publie Law 90-104 (1) Increases maximum maturity of business loans for ccnstruction purposes to 15 years, and (2) liberalizes authority to pmchase debentures of small business investment companies and establishes new interest formula on such debentures. B. Economic Opportunity Amendments of 1967-Public Law 90-222 Revises standards for SBA loans to provide employment and investment incentives to small businesses in areas with high proportions of unemployed or low-income individuals or businesses owned by low-income individuals. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 528 THE BUDGET FOR FISCAL YEAR 1969 V. Appalachian Regional Commission A. Appalachian Regional Development Act Amendments of 1967-Public La.w 90-103 Authorizes grants and loans with flexible interest and repayment requirements for expenses of planning and obtaining insured loans for low and moderate income housing construction in growth areas of Appalachian region. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SPECIAL AN AL YSIS F CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH Recent substantial increases in civilian employment in the executive branch are attributable chiefly to support for Vietnam operations and to a large increase in mail volume. Because of the expected near stabilization of Vietnam defense requirements, the rise in civilian employees in fiscal 1969 is estimated to be substantially less than in 1968. FULL-TIME PERMANENT CIVILIAN E~IPLOYJIENT Full-time permanent civilian employment is estimated to reach 2,687,500 by the end of 1969. Nearly one-half of these employees will work in the Defense Department, another one-fifth in the Post Office, and about 6% in the Veterans Administration. Thus, these three agencies account for nearly three-quarters of all permanent full-time employment in the executive branch. Table F-1 outlines the estimated changes in civilian permanent full-time employment between 1968 and 1969. Of the total anticipated increase of 46,000, over 39% is for the Post Office to service a 3.8% increase in mail volume and a further substantial rise in the number of mailing addresses. Another 6%, or 3,000 employees, is for the Department of Defense to support operations in Vietnam. The remaining increase is for providing a larger number of public services to a growing population and expanding economy. Ten agencies account for the bulk of these added employees: (1) The Treasury Department, up 3,500, as the Internal Revenue Service will require an additional 2,700 persons to stay abreast of 112 million tax returns, up 3 million in 1969, and the Bureau of Customs expects a 7% increase in formal cargo entries. (2) The Department of Health, Education, an<l Welfare, up 3,400, mainly because the number of claims processed for old-age and survivors insurance is expected to rise, and bills and claims received under the supplementary medical insurance plan are expected to increase by 3 million. (3) The Department of the Interior, up 2,400, chiefly for teachers to educate Indians on reservations, for personnel to continue building and to operate new power facilities initiated in prior years, for work on water pollution control (including the staffing of new laboratories). and for accommodating a 9% increase in visitors to the National Parks. (4) The Department of Transportation, up 1,900, largely for additional workload in the Federal Aviation Administration associated with increased aviation activity, illustrated by a 15% increase in landings and takeoffs at airports with FAA towers. (5) The Veterans Administration, up 1,900, primarily to enlarge and improve hospital services and give better medical care. 5:2!! 300-000 0~68-34 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 530 THE BUDGET FOR FISCAL YEAR 1969 Table F-1. SUMMARY OF FULL-TIME PERMANENT EMPLOYMENT IN THE EXECUTIVE BRANCH As of June Increase. 1969 Agency 1967 actual 1968 ea ti mate 1969 over 1968 estimate --Department of Defense, Military and military assistance _________________________________ 1,193,657 Post Office Department_ ______________________ 528,254 I, 220,500 550,600 I, 223,500 568,400 3,000 17,800 Subtotal__ ____________________ - _- ______ I. 721,911 I, 771,100 I, 791. 900 20,800 Department of Agriculture ____________________ Department of Commerce _____________________ Department of Defense. Civil __________________ Department of Health, Education, and Welfare __ Department of Housing and Urban Development_ Department of the Interior_ ___________________ Department of Justice ________________________ Department of Labor_ ________________________ Department of State __________________________ Agency for International Development_ _______ Peace Corps ______________________________ Department of Transportation _________________ Treasury Department_ ________________________ Atomic Energy Commission ___________________ General Services Administration ________________ National Aeronautics and Space Administration __ Veterans Administration _______________________ Other agencies: Selective Service System ____________________ Small Business Administration ______________ Tennessee Valley Authority __________________ The Panama Canal__ _______________________ United States Information Agency ____________ Miscellaneous agencies I _____________________ 85,723 25,900 31. 980 97,792 14,250 60,606 33,176 9,461 26,849 16,713 1,240 55, 187 81.591 7,013 37, 117 33,726 150,225 85,800 26,200 32,200 105,400 14,800 61,100 33,650 9,700 26,900 17,600 1,400 57,700 82,000 7,150 38,300 32,400 152,100 86,300 27,000 32,600 108,800 16,200 63,500 34,200 10,700 27,000 18,100 1,600 59,600 85,500 7,300 39,700 32,600 154,000 500 800 400 3,400 1,400 2,400 550 1,000 100 500 200 I, 900 3,500 150 1,400 200 I. 900 7,085 4,142 11,903 14,571 11,686 32,204 7,200 4,300 12,350 14,950 11,650 33,550 6,900 4,700 12,700 15,000 II, 700 35,100 -300 400 350 50 50 1,550 Subtotal__ _____________________________ 850, 140 868,400 890,800 22,400 2,400 4,800 2,400 2,641,900 12,687,500 45, lOO Allowance for contingencies ____________________ ----------Total_ ________________________________ 2,572,051 I Excludes member-employees of the Soldiers' Home. (6) The Department of Housing and Urban Development, up 1,400, mainly covering an anticipated growth of 100,000 FHA mortgage insurance applications, and the new or expanded activities in the Model Cities, Public Housing, and Urban Renewal programs. (7) The General Services Administration, up 1,400, mostly- to handle the increased volume of supplies required for support of military operations in Southeast Asia, and for the operation and maintenance of 3 million square feet of new Federal buildings, construction of which will have been completed. (8) The Labor Department, up 1,000, to administer an expanded Federal manpower program including full cost on-the-job training for the disadvantaged, short-term employability training, and support for State and local manpower program planning. (9) The Commerce Department, up 800, largely for (a) a larger number of overseas commercial exhibitions in 1969 which are expected https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 531 SPECIAL ANALYSES to boost sales of American products abroad, (b) a significant increase in weather observations and improved weather forecasting capability, and (c) a 4% increase in the disposition of patent applications. (IO) The Justice Department, up 550, mainly for crime control and civil rights activities of the FBI and the Department's attorneys, and for the expected 7 million additional inspections by the Immigration and Naturalization Service. TOTAL FEDERAL PERSONNEL Employees in permanent full-time positions account for nearly 90% of total civilian employment in the executive branch. The remainder consists of part-time and intermittent workers, employed largely in projects of a special, temporary, or seasonal nature. Total Federal Government employment also includes military personnel in the executive branch and employment in the legislative and judicial branches. A, of June 1967 actual 1968 1969 eliimate nlimate Civilian employment in the executive branch: 1 Permanent full-time ___________________________________ _ 2,572,051 2,641,900 Z,687,500 Other than permanent full-time 2 _______________________ _ 305,276 289,800 299,200 Military personnel: Department of Defense ________________________________ _ 3,374,436 1,487,510 3,474,589 Reimbursable details to other agencies _______________ ·___ _ 2,075 2,366 2,931 Department of Transportation (Coast Guard) ___________ _ 36,540 37,321 38,475 Total executive branch personneL __________________ 6, 290, 378 6, 458, 897 6, 502, 695 Legislative and judicial personnel_________________________ 34,291 TotaL _________ _______________________ ____ _______ 6,324,669 I 2 Excludes member-employees of the Soldiers' Home. Exclude, summer workers under the President', Youth Opportunity Campaign and variou, merchant seamen on veuels under Federal shipping contracts. GEOGRAPHICAL DISTRIBUTION OF EMPLOYMENT Table F-2 presents data on the geographical distribution of Federal emJ?loyment. Most Federal employees-over 81 %-work in the vanous States. Less than 11% are located in the Washington, D.,C. metropolitan area (including nearby Maryland and Virginia). Another 8% are in foreign countries and in U.S. territories and possessions. PERSONNEL COMPENSATION AND BENEFITH Estimates of the Federal payroll and related costs are shown in table F-3. Direct compensation includes regular pay, Sunday pay, and special pay for overtime, holiday, and standby time; differentials for nightwork and overseas duty, flight and hazardous duty, etc. Related personnel benefits include the Government's share of Federal retirement and old-age, survivors', and disability insurance costs; employees' life insurance, health insurance and benefits, and similar pa:y:ments; they also include cost-of-living and quarters allowances, uniform allowances ( when paid in cash), and, in the case of the military personnel, they also include allowances for subsistence, reenlistment bonuses, and certain other cash payments. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 532 THE BUDGET FOR FISCAL YEAR 19 6 9 Table F-2. FEDERAL CIVILIAN EMPLOYMENT BY GEOGRAPHICAL LOCATION (as of June 1967) Location Washington, D.C., metropolitan area _______ ------ ------ --- -Alabama _____________________ _ Alaska _______________________ _ Arizona ______________________ _ Arkanaas _____________________ _ California ____________________ _ Colorado _____________________ _ Connecticut_ _________________ _ Delaware _____________________ _ Florida _______________________ _ ~:::t= ===== === ========== === Idaho ________________________ _ Illinois _______________________ _ Indiana ______________________ _ Iowa _________________________ _ Kansas _______________________ _ ~!=:-~=================== Maine _______________________ _ Maryland ____________________ _ Massachusetts ________________ _ Michigan _____________________ _ Minnesota ____________________ _ ~=~~~~~ =~========= ::::::::_ Montana _____________________ Nebraska _____________ - _- _____ _ Nevada ______________________ _ New Hampshire _______________ _ New Jersey ___________________ _ New Mexico __________________ _ New York ____________________ _ North Carolina ________________ _ North Dakota ________________ _ Ohio _________________________ _ Oklahoma ____________________ _ Total I 308,712 62,066 14,834 24,864 16,502 306,351 41,380 18,315 4,232 65,051 75,701 26,859 7,717 113,761 39,813 17,933 21,746 35,784 28,664 16,955 3 59,684 66,445 53,623 29,738 19,822 63,822 9,682 15,515 7,814 4,596 66,091 25,399 185,521 36,617 7,576 100,148 55,598 2 Location Total 22,806 143,588 14,924 ?~;i;~i~: === ::: :::::==: ::: Rhode Island __________________ South Carolina _________________ South Dakota __________________ Tennessee _____________________ Texas _________________________ Utah __________________________ Vermont_ _____________________ Virginia _______________________ Washin~n;---- _______________ West V1rg1ma __________________ Wisconsin _____________________ Wyoming ___________________ " __ Undistributed __________________ I 29,665 9,267 40,388 144,191 41,412 3,454 3 81,162 55,764 12,663 24,299 4 4,658 -7,714 Total United States _______ 2,675,458 Outside United States: Territories and possessions _____ Foreign countries _____________ 35,728 200,432 Total outside United States _______________ U.S. citizens ___________ Foreign nationals _______ 236,160 (58,5IO) 5 (177,650) Total employment ________ Legislative and judicial__ ________ 2,911,618 -34,291 Total employment executive branch ____________ Other than full-time permanent __ 2,877,327 -305,276 Total full-time permanent employment, executive branch ____ ------------ 2,572,051 I Di1tribution by State is partially estimated, ' Includes employees of the necutive branch and of the legislative and judicial branch••· Excludes employment within the Washington, D.C., metropolitan area, which include ■ the District of Columbia, and the adjacent counties and cities in Maryland and Virginia. • Includes various merchant seamen on ve11eJa under Federal ah~pping contracts who are dis~ tributed by State of residence and member-employees of the Soldiers' Home, ' Excludes 120,383 foreign nationals working for Department of Defense under contract agree• ments, or other arrangements with foreign governments which provide for the furnishing of peraonal services. 3 The obligations to be incurred for civilian personnel compensation and benefits in 1969 are estimated at $25 billion. Some of the personnel are employed by trust funds (such as old-age and survivors insurance) and some are employed by public enterprise funds (such as the Post Office). The cost of these employees, included in Table F-3, amounts to $7 billion. Government pay scales for "blue collar" workers have for many years been subject to administrative adjustment to correspond to local prevailing rates in private industry. As wages in private industry advanced, Federal compensation for such workers also increased. Pay for most other Federal workers has been set by statute. In https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 533 SPECIAL ANALYSES December 1967, the Congress enacted pay legislation which authorizes the President, without additional congressional approval, to set salary rates consistent with the standards set forth in the 1962 Salary Reform Act. Table F-3. ESTIMATED PERSONNEL COMPENSATION AND BENEFITS (In millions of dollars) ---------------------------------------~----1967 1968 T ot~I civilian perso'?nel costs: Direct compensation ____________________________________ _ Personnel benefits _______________________________________ _ 20,600 1,700 22,300 1,850 23,150 1,900 Total_ _____________________________________________ _ 22,300 24. 150 I 25,050 Description MEMORANDUM 1969 1 ! To~! military perso~el costs: 2 Direct compensation ____________________________________ _ Personnel benefits _______________________________________ _ 11,750 i 3,500 . I _ __ Total_ ____________ - ___ - - - - - - - - - - - - - - - - - - - - - - - _- - - - - - i I 15,250 ! 13.050 I 3,900 I 13,500 4,000 16.950 I 17,500 t Excludes 1969 budget allowance of $1.600 million for military and civilian pay increases. to be effective July l, 1968, under present law. 2 E:r.cludes Reserve components. This legislation is designed to achieve, in three steps, comparability with private industry salary levels by July 1969. The first step was effective retroactively to October 1967 and provided an increase of 6% for postal employees and au average incrense of 4.5% for all others. The second step, which is to be effective i11 July 1968, provides a 5% increase for postal employees, and an increase for all others equal to one-half of the difference then existing between Government salaries and comparable private salaries for the same type of occupation. The third and final step will achieve full comparability in July 1969. The compensation figures in table F-3 reflect the first step in the series. For 3 successive years, 1965-67, there has been no significant Go,. ernment-wide change in the average grade of Classification Act employees. Apart from legislative changes in pay scales, n,·erngP compensation for 1967 shmrnd only a slight increase from 196li. This was due mostly to merited \Yithin-grade salary advancements nnd necessary reclassifications of new positions in certain agencies. TRENDS IN NUMBERS OF EMPLOYEES AND WORKLOAD The continued growth in population, in national income, and in economic activity, coupled with an increasing concern for the welfare of the poor and the elderly, has brought about a sharp rise in the volume of public services the Government is called upon to render. In 1969, for example, the participants in the food stamp program will rise 8%; establishments with Federal meat inspectors will increase by 78%; the number of pieces of mail delivered by the Post Office will be up 3.8% to 85 billion; the number of small business loans are expected to increase by 21 %; complaint applications concerning monopolistic and unfair trade practices are projected to rise by 7%; air https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 534 THE BUDGET FOR FISCAL YEAR 19 6 9 carrier rate and fare cases will rise by 16%; the number of radio and television stations regulated by the Federal Communications Commission will be up 5%; a 93 % increase is expected in electric rate filings to the Federal Power Commission; the number of law enforcement investigations and cases completed by the Department of Justice is expected to rise by 5% ; there will be a 20% increase in outlays by Federal manpower programs, m ostly aimed at the disadvantaged in both urban and rural areas; the number of applications for motor carrier operating authority is expected to increase by 8%; a 7.5 % increase is projected in unfair labor practice cases; and beneficiaries of the Social Security system will increase by 4 %. The increase in staff needed to carry out the new programs and to accommodate the increasing demands for existing Government services has been estimated on the assumption that existing work methods can be improved with a resulting increase in productivity. Government Civilian Employment Millions of EmployeeJ 1-4 - 12 - 10- 8- 77',) State and Local End of fiscal Year A historical comparison of total Federal civilian employment in the executive branch (including temporary and part-time employment) with employment by State and local governments and U.S. population for 1942-69 is shown in table F-4. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 535 SPECIAL ANALYSES Table F--4. GOVERNMENT EMPLOYMENT AND POPULATION, 1942-69 ! Government employment Federal State and All govern- I Federal as Federal emTotal executive local governmental percent of United ployment branch 1 ments units all governStates per 1,000 (thousands) (thousands) (thousanda) Imental units; (thousands) population Year 1942._ ___ -- ------ -- _ 1943 ___ -- -- __ -- _-- __ 1944_________ ------ _ 1945.. ___ -- ------ -- _ 1946________________ 1947 ________________ 1948__ ____ ------- -- _ 1919 ___ ------------1950 ___ -- -------- - -195 I __ -------------1952 ______ ---------1953_____ --- --- ---- 1954________________ 1955__ ______________ 1956________________ 1957 _____ -- -- ---- --1958 _____________ --1959 _. ------------.. 1960 ___ --- -- -------)96)___ - - - - - - - - - -- - - 1962._ ______________ 1963__ ___ -- --- ---- -1964 _____ ---- -- _____ 1965__ ______________ 1966 ________________ 1967________________ 1968 (estimated) 4 ____ 1969 (estimated) Population 4____ 2,272 3,274 3,304 3,787 2,666 2,082 2,044 2,075 I, 934 2,456 2,574 2,532 2,382 2,371 2,372 2,391 2,355 2,355 2 2,371 2,407 2,485 3 2,490 3 2,469 2,496 2,664 3,310 3, 184 3,092 3, 104 3,305 3,568 3,776 3,906 4,078 4,031 4, 134 4,282 4,552 4,728 5,582 6,458 6,396 6,891 5,971 5,650 5, t20 5,981 6,012 6,487 6,708 6,814 6,934 7,099 7,436 5,064 5,380 7,771 5,630 7,985 5,806 8,161 6,073 8,444 6,295 8,702 6,533 9,018 6,834 9,324 7,236 9,705 7,700 10, 196 10,984 8,320 8,898 II, 775 ----------- ----------- 2,877 2,932 2,987 ----------- ----------- 40.7 50.7 51.7 55. 0 44.6 36.8 35. I 34. 7 32. 2 37.9 38.4 37. 2 34. 4 33.4 31. 9 30.8 29.5 28.9 28. I 27. 7 27.6 135,361 137,250 138,916 140,468 141,936 144,698 147,208 149,767 152,271 154,878 157,553 160,184 163,026 165,931 168,903 171,984 174,882 177,830 180,684 183,756 186,656 189,417 192,120 194,592 196,920 199, 118 16.8 23. 9 23. 8 27.0 18. 8 14.4 13. 9 13. 9 12. 7 15. 9 16.3 15. 8 14.6 14.3 14.0 13. 9 13. 5 13.2 13. I 13. I 13.3 13. 1 12. 9 12.8 13. 5 14. 4 14. 6 14. 7 26.7 25. 4 24.5 24.2 24.4 23. 8 ----------23.0 ----------- 1 Covers total end-of-year employment in full-time permanent. temporary, part-time, and intermittent positions except for summer workera under the President's Youth Opportunity Campaign; member employees of the Soldiers' Home; and various merchant seamen sels under Federal shipping contracts: 1968 1967 Youth Opportunity Campaign ________________ _ Merchant seamen ___________________________ _ Member-employees of the Soldiers" Home ______ _ actual 82,923 7,464 250 estimate 83,000 6,500 250 on ves- 1969 estimate 83, 000 6,400 260 Includes piece-rate census workers employed for the decennial census. 3 Excludes 7,411 project employees in 1963 and 406 project employees in 1964 for the public works acceleration program. 4 An official projection of population and of State and local government employment for 1968 and 1969 is not available. The percentages and ratios shown for these years are consistent with a range of reasonable estimates based on recent trends in population and State and local employment. 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PART 7 HISTORICAL TABLES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 537 Table 15. BUDGET RECEIPTS, OUTLAYS, FINANCING, AND DEBT, 1958-1969 (in millions of dollars) - - ---- ---- ·-----·------ - - - - - - - - - - - - - - - ·---------··--- Actual Estimate Description 1958 1959 1960 1961 1962 79,617 81,177 79,048 89,693 92,481 90,385 94,393 96,717 99,656 104,660 2.096 -2.324 1963 J_~~~- __ 1.968 1969 155,830 169,856 178,108 182,797 -3,637 -14,026 -4,689 1965 _ ---1~66 _____1967__ Receipts, expenditures, and net lending: Expenditure account: Receipts ________________________ _ Expenditures (excludes net lending)_ Expenditure deficit ( - ) ________ _ -1,5601-10.6451 106,578 111,465 -5.004 I -4.887 112,702 118,122 -5.420 I 116,855 116,718 130,901 130,740 m 161 149,391 153,238 ---:----:----:----:---:----,---- Loan account: Loan disbursements ______________ _ Loan repayments _____________ _ Net lending_ 6,520 4,976 7,859 5,201 8,310 6,427 7,869 6,671 9,621 7,271 9,646 9,791 10,237 9,693 10,911 9,662 14,628 10,796 17,787 12,611 20,869 15,091 20,372 17,106 1,544 2,659 1,882 I. 198 2,351 -145 545 1,249 3,832 5,176 5,779 3,265 l---:---:---:----1----1----l-----l----1----:----l·---·I----- Total budget: Receipts ______________________ Expenditures and net lending______ 79,617 82,720 79,048 92,352 92,481 92,268 94,393 97,915 99,656 107,011 106,578 111,320 112,702 118,667 116,855 117,966 130,901 134,572 149,591 158,414 155,830 175,635 178,108 186,062 l----l----1----l·---l----1----1----l·---l----1----1----:--- 8udget deficit(-) ____________ -3,103 -13,304 Budget financing: 213 -3,522 -7,355 -4,742 -5,965 -1,111 -3,671 -8,823 -19,8051-7,954 1,777 -1, 990 I, 143 2,379 9,453 -2,098 5,971 -1,229 2,978 2,987 3,953 -2,842 6,031 -2,360 3,551 5,272 20,840 -1,035 8,000 -46 1 Borrowing from the public_____ __ - - 6,6071 Reduction in cash balances, etc ______ _ -3,504 8,331 4,973 ----1----:----1----1----1----1----1 Total, budget financing ___________ _ Outstanding debt, end of year: 3, 1031 -2131 3,522 7,355 290,991 237,223 301,074 246,676 4,742 I 286,666 234,303 289,243 236,080 308,488 252,647 Data represent results of preliminary adjustment to new budget concepts and may be revised later. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5,965 1,111 3,671 8,823 19,805 7,954 314,377 255,625 320,806 259,578 329,473 265,609 341,343 269,160 369,993 290,000 387,167 298,000 1 Grossamountoutstanding ___________ 279,147 Held by the public __________________ 225,972 1 13,304 ... <O Ol <O Table 16. BUDGET RECEIPTS BY SOURCE, 1958-1969 (in millions of dollars) ----------------- Actual Estimate Description ----------------~~~-~ Individual income taxes _________________________ _ Corporation income taxes ________________________ _ Employment taxes ______________________________ _ Unemployment insurance ________________________ _ Premiums for insurance and retirement_ ____________ _ Excise taxes ___________________________________ _ Estate and gift taxes ____________________________ _ Customs _______________________________________ _ Other receipts _________________________________ _ 1962 I 1963 ~~~~~~ 34,724 20,074 8,624 1,924 682 10,638 1,393 781 777 36,719 17,309 8,821 2,131 769 10,578 1,333 925 463 40,715 21,494 11,248 2,668 768 11,676 1,606 I, 105 1,200 41,338 20,955 12,679 2,904 866 11,860 1,896 982 913 45,571 20,523 12,835 3,337 873 12,534 2,016 I, 142 825 67,700 31,300 29,730 3,660 2,049 13,848 3,100 2,000 2,443 80,900 34,300 34,154 3,594 2,275 14,671 3,400 2,070 2,744 Total, budget receipts______________________ 79,617 79,048 92,481 94,393 99,656 106,578 112,702 116,855 130,901 149,591 155,830 178, 108 5,330 5,309 6,508 47,588 21,579 14,746 4,112 944 13,194 2,167 1,206 1,042 48,697 23,492 16,959 4,045 1,006 13,731 2,394 1,252 I, 126 48,792 25,461 17,358 3,819 1,079 14,570 2,716 1,442 1,617 55,446 30,073 20,662 3,777 I, 126 13,061 3,066 1,767 1,923 61,526 33,971 27,823 3,652 1,853 13,719 2,978 1,901 2,168 -----------------1-----------------------------------MEMORANDUM (Excluded above; offset against expenditures) lnterfund and intragovernmental transactions _______ } 4,119 Proprietary receipts from the public _______________ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ------ -- ------------ ---·- 5,654 7,099 6,655 ---------·---- - - ~ - - - - - - - - - - - - - - 6,761 7,592 6,588 4,948 7,415 4,430 8,241 4,617 --------------- Table 17. BUDGET OUTLAYS BY FUNCTION, 1958-1969 (in millions of dollars) Actual Estimate Description 1958 I 1959 1960 I 1961 I 1962 I 1963 I 1964 1965 I 1966 1967 1968 I I 1969 1--- - - - - ----- - - ---- - - - ---- ----- ---- - - - ----Expenditures: 050 National defense ____ --- - - - - - - - - - - - _-- _ 44,461 46,667 150 International affairs and finance____________ 2,912 2,790 250 Space research and technology_____________ 89 145 350 Agriculture and agricultural resources_______ 2,541 4,718 400 Naturalresources _________________________ 1,203 1,233 500 Commerce and transportation______________ 2,922 4,367 550 Housingandcommunitydevelopment_______ -36 30 650 Health, labor, and welfare _________________ 15,763 18,019 700 Education________________ _____________ 375 550 800 Veterans benefits and services______________ 5,076 5,183 850 Interest____ _____ _________ ___________ 6,936 7,070 900 Generalgovernment__ ____________________ 1.010 1.159 Special allowances __________________ - ___ - - - - - - - - - - - -- - - - - - - - -Undistributed adjustments to amounts above ______ -2,076 j-2,239 Total.expenditures__ _ _ ___ ~189,693 ~ii I 47,532 3,242 744 2,877 1,626 4,929 157 22,368 740 5,392 8,108 1,508 - - -- - - - -2,506 51. 179 4,034 1.257 3,491 1.736 5,193 160 23,963 842 5,378 8,321 1,653 --------2,547 52,275 53,682 4,279 4,434 2,252 4,171 4,398 4,545 1.607 2,042 5,516 6,283 193 151 25,677 27,201 953 1,109 5,666 5,552 9,215 9,810 1,799 2,072 - - - - - - __ - - - _- __ -2,6661-2,931 49,586 56,771 4,196 4,343 5,091 5,932 4,032 2,764 2,140 2,167 7,043 6,789 116 442 28,143 33,194 1,309 2,449 5,634 5,707 10,358 11.285 2,231 2,316 - - ____ - _ -- - _- ___ -3, 164 -3,421 Nationaldefense_________________________ International affairs and finance____________ Agriculture and agricultural resources_______ Natural resources_________________________ Commerce and transportation______________ Housingandcommunitydevelopment_______ ~d~~:ti!:~~r~-~~~-~~~f~~~::::::::::::::::: 800 Veterans benefits and services________ _____ 900 General government_______________ _______ 1 I -12 433 418 472 700 3 6 56 71 165 1.0641 -41 127 462 18 74 64 ----i6fl ____ isii_l ____ 2iif 20~ 296 -3 245 -14 1.5441 2,6591 76,491 4,330 4,804 4,412 2,416 7,695 698 46,396 4,157 6,798 13,535 2,618 100 -4,591 79.792 4,478 4,574 4,474 2,483 7,996 1.428 51.945 4,364 7,131 14,400 2,827 1, 950 -5,049 I 182,797 I -7 -235 457 11 27 1.078 261 -12 70,095 4.110 5,424 3,156 2,113 7,308 578 39,512 3,602 6,366 12,548 2,452 --------4,022 90,385196.7171104,660 111.4651118,122 116.7151130,7401153,2381169,856 _ _ !___ ~~= 050 150 350 400 500 550 45,848 3,310 401 2,893 1,084 4,643 21 19,105 659 5,063 8,299 1.332 - - - -- - - -2,272 363 -15 1.8821 * -64 528 -95 648 731 21 18 193 145 490 -1,012 -31 -283 642 23 139 -301 -147 21i 88 16 231 248 -8 28~ I -146 -11 22; 129 -1 1.19812,351 -1451 545 -3 -21 777 16 -1 100 911 19 193 1,984 275 :I 3~~ 2141 5 -3 540 1.221 19 138 1.708 m !I 532 2 -2 716 899 16 158 3,257 -4 675 1. 135 7 125 1,355 3~l 370 -40 211 -37 1,2491 3,8321 5,1761 5,7791 -m 3,265 Total,netlending____________ ___ Total, expenditures and net lending -- -182, 720 _I 92,352192,268197,915 :107,011~20_J~s:~7-U7,966 1134,57~1_158,4141175,6351186,062 *Less than $500 thousand. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 18. FEDERAL TRANSACTIONS IN THE NATIONAL INCOME AND PRODUCT ACCOUNTS, 1958-1969 (Fiscal years. In billions of dollars) ---------------------------------------- ---------------- Actual Estimate Description 1 -----------------~-~~ 1960_1 1961 I 1962 I 1963 ~~~- 1966 1~_1_96_s___19_6_9_ RECEIPTS, NATIONAL INCOME BASIS Personal tax and nontax _________________________ _ Corporate profits tax accruals ____________________ _ Indirect business tax and nontax accruals __________ _ Contributions for social insurance _________________ _ 36.3 17.8 11.6 12.2 38.2 21.'5 11.9 13.8 42.5 22.3 13.2 16.7 43.6 20.3 13.3 18. 1 Total receipts, national income basis ________ _ 77.9 85.4 94.8 95.3 50.7 (44.8) (5.9) 19.5 4.7 5.7 54.7 (46.4) (8.3) 21.6 6.2 5.9 52.7 (45.0) (7.8) 22.4 6.8 7.0 2.5 2.4 2.3 51.3 27.8 16.9 24.5 57.5 31.0 15.8 28.6 64.6 22.1 50.7 25.7 15.6 23.5 31.4 15.9 35.7 71.0 34.3 17.1 38.7 83.8 37.2 18.1 43.4 104.2 110.2 115.5 120.6 132.9 147.6 161.1 182.5 55.5 (46. 7) (8.9) 25.6 6.9 6.8 60.9 (50.5) (10.4) 27.2 7.6 6.8 63.4 (50.4) (13.0) 28.5 8.4 7.5 65.7 (50. 9) (14.7) 29.5 9.8 8.1 64.3 10.9 8.5 71.7 (54.5) (17. 3) 34.1 12.7 9.0 84.5 (67.6) (16. 9) 39.8 15.4 10.1 92.8 (74.4) (18.4) 44.9 18.0 10.7 99.4 (78.8) (20.6) 49.9 20.0 11.2 3.2 3.8 3.6 3.8 4.1 4.5 5.3 4.6 4.5 171.1 185.0 47.3 22.9 14.2 19.9 49.6 23.5 15.0 EXPENDITURES, NATIONAL INCOME BASIS Purchases of goods and services __________________ _ Defense ______________________________ -- - - - - - Nondefense __________________________________ _ Transfer payments ______________________________ _ Grants-in-aid to State and local governments ______ _ Net interest paid _______________________________ _ Subsidies less current surplus of Government enterprises ________________________________ - - - - - - - - Totalexpenditures,nationalincomebasis____ Excess of receipts (+)or expenditures ( - ), national income basis__________________________________ (48. 8) (15.5) 30.4 ---,,I~------·--- I____I___I --·· --83.1 I -5.1 90.9 91.3 98.0 106.4 111.41 116.9 118.3 131.9 155.1 -5.5 +3.5 -2.7 -2.1 -1.2 -1.4 +2.3 +.9 -7.5 = = ==== -10.0 -2.5 Source.-Actual data for 1958-67 are based on the estimates prepared by the Department of Commerce. Data for 1968 and 1969 are based on estimates by the Bureau of the Budget in cooperation with the Department of Commerce. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 542 THE BUDGET FOR FISCAL YEAR 19 6 9 Table 19. THE "ADMINISTRATIVE BUDGET" AND PUBLIC DEBT, 1789-1969 (in millions of dollars) ADMINISTRATIVE BUDGET Public debt at end of Fiscal year Reccipts Expendit urea ADMINISTRATIVE BUDGET Fiscal year year Receipts Net Expenditures --- -1789-1849. I. 160 1,090 +70 1850-1899. 13. 895 14,932 -1.037 63 1,437 1900. ----190L. .... 1902. ·-·-· 1903 ...... 1904 ...... 567 588 562 562 541 521 525 485 517 584 +46 +63 +77 +45 -43 1,263 1,222 1. 178 1,159 1. 136 1905. ·-··· 1906 ...... 1907 ...... 1908-. .... 1909. ··--· 544 595 666 602 604 567 570 579 659 694 -23 +25 +87 -57 -89 1,132 1,143 1,147 1,178 1,148 1910 ...... 191L .... 191L .... 1913 ...... 1914 ... -·. 676 702 693 714 725 694 691 690 715 725 -18 +II +3 * * 1, 147 I, 154 1,194 1,193 1,188 1915 ...... 1916-. .... 1917 ...... 1918 ...... 1919...... -63 683 746 762 713 +48 I, 100 1;954 -853 3,630 12,662 -9,032 5,085 18,448 -13, 363 1,191 1,225 2,976 12,455 25,485 1920 ...... 192L .... 192L .... 192L .... 1924...... 6,649 6,357 5,567 5,058 4,021 3,285 3,849 3,137 3,853 2,890 +291 +509 +736 +713 +963 24,299 23,977 22,963 22,350 21,251 1925 ...... 1926 ...... 1927..... _ 1928-. .... 1929...... 3,598 3,753 3,992 3,872 3,861 2,881 +717 2,888 +865 2,837 +1.155 2,933 +939 3,127 +734 20,516 19,643 18,512 17,604 16,931 1930 ...... 193L .... 193L .... 1933 ...... 4,058 3,116 1,924 1,997 3,320 +738 3,577 -462 4,659 -2, 735 4,598 -2,602 16,185 16,801 19,487 22,539 1934. ----1935 ______ 1936...... 1937 ...... 1938 ...... 1939 ...... Public debt at end of year Net 3,015 -----6,645 -3,630 27,734 3,706 3,997 4,956 5,588 4,979 6,497 8,422 7,733 6,765 8,841 -2,791 -4,425 -2. 777 -1. 177 -3,862 32,824 38,497 41,089 42,018 45,890 1940 ...... 5,137 9,055 -3,918 48,497 194L .... 7,096 13,255 -6, 195 55,332 194L .... 12,547 34,037 -21,490 76,991 1943 ...... 21,947 79,368 -57,420 140,796 1944 ...... 43,563 94,986 -51, 423 202,626 194L .... 1946...... 1947-. .... 1948 ...... 1949...... 44,362 39,650 39. 677 41,375 37,663 98,303 -53,941 60,326 -20,676 38,923 +754 32. 955 +8,419 39,474 -1.811 259, 115 269,898 258,376 252,366 252,798 1950...... 195L .... 195L .... 195L .... 1954 ...... 36,422 47,480 61,287 64,671 64,420 39,544 43,970 65,303 74. 120 67,537 -3, 122 +3.510 -4,017 -9,449 -3. 117 257,377 255,251 259, 151 266,123 271,341 1955 ...... 1956...... 1957-. .... 1958 ...... 1959...... 60,209 67,850 70,562 68,550 67,915 64,389 -4. 180 66,224 +1,626 68,966 +1,596 71,369 -2,819 80,342 -12,427 274,418 272,825 270,634 276,444 284,817 1960 ...... 196L .... 196L .... 1963 ...... 1964 ...... 77,763 77,659 81,409 86,376 89,459 76,539 81,515 87,787 92,642 97,684 +1.224 -3,856 -6,378 -6.266 -8,226 286,471 289,211 298,645 306,466 312,526 93,072 96,507 -3,435 104,727 106,978 -2,251 115,849 125. 718 -9.869 118,575 137,182 -18.607 135,587 147,363 -11,776 317,864 320,369 326,733 351,599 363,540 196L .... 1966 ...... 1967...... 1968 est. .. 1969 est. .. *Leu than $500 thousand. Note.-This table is based ~pon the concept of the "'administrative budget" used in prior budgets. The column headed "Net" was formerly identified as "Surplus" (+) or "Deficit" (-). The _public debt column includes the put,lic debt and the portion of agency debt, guaranteed by the Treasury, which is subject to the pubi': debt limitation. Certain in.terfund transactiona are excluded from administrative budget receipts and expenditures starting in 1932. For years prior to 1932 the amounts of such transactions are not 1ignificant. Refunds of receif.ts are excluded from administrative budget receipts and expenditures starting in 1913; comparab e data are not available for prior years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 543 HISTORICAL TABLES Table20. FEDERAL SECTOR OF THE NATIONAL INCOME AND PRODUCT ACCOUNTS, 1940-1968 (in billions of dollars) Federal sector of the national income and product accounts As a percent of GNP Expenditures Fiscal year Gron national product Receipts Total Exceas of of which, receipts ( +) purchases or expendof goods itures (-) and Total Federal ex pen ditures services 1940 __________ 1941__ ________ 1942 __________ 1943 __________ 1944 __________ 95.0 109.4 139. 2 177. 5 201. 9 7.6 12. I 19.6 28.9 43. I 9. I 13.4 33.6 76.8 91. 3 1945 ___ -- _____ 1946 __________ 1947 __________ 1948 __________ 1949 __________ 216.8 201. 6 219.8 243.5 260.0 43.0 38. 4 42.7 43.6 40.0 98.2 1950 __________ 1951__ ________ 1952 __________ 1953 __________ 1954 __________ 263.3 310.5 337.2 358.9 362. I 1955 __________ 1956 __________ 1957 __________ 1958 __________ 1959 _____ -- ___ and services 5.5 72. 3 85.6 -1.5 -1.3 -14.0 -47.9 -48.1 9.6 12. 3 24.2 43. 3 45. 2 -55.2 -17.1 +13.2 +12.7 +.4 45.3 27. 5 13.4 12.7 15.2 41. 4 29.5 30.9 39.6 89.7 40. I 13. 0 13. 2 19.3 42.0 60.8 65. I 69.3 65. 8 42.4 44.6 66.0 75. 8 74.2 19.0 25. I 46.6 56. I 53.2 -.5 +16.2 -1.0 -6.5 -8.5 16.1 14.4 19.6 21. I 20.5 7. 2 8.1 13. 8 15.6 14.7 378.6 409.4 431.3 440.3 469. I 67.2 75. 8 80.7 77.9 85.4 67. 3 69.8 76.0 83.1 90.9 43. 9 45.2 47.7 50.7 54.7 -.I +6.0 +4.7 -5.1 -5.5 17. 8 17.0 17. 6 18.9 19.4 11. 6 11.0 II. I 11.5 11.7 1960 __________ 1961_ ________ :' 1962 __________ 1963 __________ 1964 __________ 495.2 506.5 542. I 573.4 612.2 94.8 95.3 104.2 110.2 115.5 91!3 98.0 106.4 111.4 116.9 52. 7 60.9 63. 4 65.7 +3.5 -2. 7 -2.1 -1.2 -1.4 18. 4 19. 3 19.6 19.4 19.1 JO. 6 11.0 II. 2 II. I l0.7 1965 __________ 1966 __________ 1967 __________ 653. 5 718. 7 763. I 817.0 120.6 132. 9 147.6 161.1 118. 3 131. 9 155. I 171. I 64.3 71.7 84.5 92.8 +2.3 +.9 -7.5 -10.0 1968 __________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55.5 5.3 9.6 Federal purchases of goods 29.9 55.5 8.8 21.5 40.8 42.4 19.9 5.9 5.4 7.4 18.1 9.8 18.4 IO.O 20.3 II.I 20.9 11.4 --~~-~ 544 THE BUDGET FOR FISCAL YEAR 1969 Table 21. FEDERAL FINANCES AND THE GROSS NATIONAL PRODUCT, 1940-1968 (in billions of dollars) A. OLDER CONCEPTS OF FEDERAL FINANCES Administrative I budget expenditures Gross Fiscal year Caal~ payments to the public Public debt at end of year 1 national product 1940 ________________ 1941 ___ ---- _-------1942 ________________ 1943 ________________ 1944 ________________ 95.0 109.4 139.2 177.5 201. 9 216.8 201. 6 219.8 243.5 260.0 263.3 310. 5 337.2 358.9 362.1 378.6 409.4 431.3 440.3 469. 1 495.2 506.5 542. 1 573.4 612.2 653.5 718. 7 763.1 817.0 1945 ___ ------------ _ 1946 _________ -- _____ 1947 ________________ 1948 --- ---- -- ----1949 __ ________________ 1950 __ ----- -- ----- -195 ------ _---- --1952L________________ 1953 ___ -- ___________ 1954 ________________ 1955 ________________ 1956 __ ------ --- -- --1957 ___ ------------1958 ___ -- -- _______ -1959 ________________ 1960 __ --- --- -------196 L _---- -- _______ 1962 _________ -- _____ 1963 ___ -- ____ -- _____ 1964 ___ ---- ------ -- _ 1965 ________________ 1966 ________________ 1967 ________________ 1968 (estimate) ______ Amount Percent of GNP 9.1 13.3 34.0 79.4 95.0 98.3 60.3 38.9 33.0 39.5 39.5 44.0 64.3 74. I 67.5 64.4 66.2 69.0 71.4 80.3 76.5 81,5 87.8 92.6 97.7 96.5 107.0 125.7 137.2 9.5 12.1 24.4 44.7 47.1 45.3 29.9 17. 7 13.5 15.2 15.0 14.2 19.4 20.7 18.7 17.0 16.2 16.0 16.2 17. 1 15.5 16.1 16.2 16.2 16.0 14.8 14.9 16.5 16.8 Amount Percent of GNP 9.6 14.0 34.5 78.9 94.0 95.2 61. 7 36.9 36.5 40.6 43. I 45.8 68.0 76.8 71. 9 70.5 72.5 80.0 83.5 94.8 94.3 99.5 107.7 113.8 120.3 122.4 137.8 155.1 176.0 10.1 12.8 24.8 44.5 46.6 43.9 30.6 16.8 15.0 15. 6 16.4 14.7 20.2 21.4 19.8 18.6 17. 7 18.5 19.0 20.2 19.0 19.7 19.9 19.8 19.7 18.8 19.4 20.3 21.5 Amount 48.5 55.3 77.0 140.8 202.6 259. 1 269.9 258.4 252.4 252.8 257.4 255.3 259.2 266.1 271.3 274.4 272.8 270.6 276.4 284.8 286.5 289.2 298.6 306.5 312.5 317.9 320.4 326.7 351 .6 Percent of GNP --51. I 50.6 55.3 79.3 100.4 119. 5 133. 9 117. 5 103.6 97.2 97.7 82.2 76.8 74. 1 74.9 72.5 66.6 62.7 62. 8 60.7 57.8 57.1 55.1 53.4 51. 1 48.8 45.0 42.8 43.0 1 Includes Government agency debt guaranteed by the U.S. Treasury, which is subject to the public debt limitation. B. NEW CONCEPT OF FEDERAL FINANCES Budget expenditures and net lending Total Amount 1958 _____ -- -- _-- __ -1959_____ ---- -- -- --1960 _________ ----- __ 1961__ _____ -- __ ----1962 _____ -_-_------1963 _____ -- ____ ----1964________ -------1965 ________________ 1966_______ --------1967--- _____________ 1968 (estimate) ______ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 82.7 92.4 92.3 97.9 107.0 111.3 118.7 118.0 134.6 158.4 175.6 of which, upenditures ( excluding loans) Federal debt at end of year Total Percent Amount Percent Amount Percent of GNP of GNP of GNP Held by public Amount Percent of GNP --- -----------------18.8 81.2 63.4 226.0 51.3 18.4 279.1 61.1 234.3 49.9 19.7 89.7 19.1 286.7 47.7 18.6 18.3 289.3 58.4 236.1 90.4 46.8 19.3 96.7 19.1 291.0 57.5 237.2 55.5 246.7 45.5 19.7 104.7 19.3 301.1 44.1 19.4 19.4 308.5 53.8 252.6 II 1.5 41.8 19.4 118.1 19.3 314.4 51.3 255.6 259.6 39.7 49.1 18. I 116.7 17.9 320.8 45.8 265.6 37.0 18.7 130.7 18.2 329.5 35.3 44.7 269.2 20.8 153.2 20.1 341.3 35.5 45.3 290.0 20.8 370.0 21.5 169.9 INDEX A Accounts, Bureau of, 387, 392 Active forces, Defense, 83-84, 86 Adjustments and allowances in outlays, 25, 77, 79 Administrative budget: Debt outstanding, relation of, to consolidated cash statement and unified budget, table, 469 Expenditures: 1789---1969, totals, table, 542 By agency, summary, table, 470 Percent of GNP, 1940-68, table, 544 Explanation of, 464---465 Financing, relation of, to consolidated cash statement and unified budget, table, 468 Receipts: 1789-1969, totals, table, 542 By source, summary, table, 470 Relation of, to unified budget and consolidated cash statement, table, 466 Results under, compared with consolidated cash statement, unified budget, and flow of Government-administered funds, table, 472 Totals and public debt, 1789---1969, table, 542 Administrative Conference of the United States, 410 Advisory Commission on Intergovernmental Relations, 429 Aeronautics and Space Administration, National, 402-403 Africa, economic assistance to, 95-96 Aged, programs for, 151 Agency for International Development, 92, 93-96 Agricultural Library, National, 246 Agricultural Research Service, 231, 249 Agricultural Stabilization and Conservation Service, 237-238, 251 Agriculture, Department of, 20, 22, 31, 231-252 Agriculture and agricultural resources: Assistance to developing countries, 28 Conservation, 22, 106 Discussion, 29---30 Dollar expenditures to finance exports, 479 Expenditures, net lending, NOA and LA, by program or agency, table, 103 Land and water, 106 NOA and expenditures, by function and agency, table, 176 Program analysis, 102-107 Research, 20, 107 Aid, foreign, see Foreign assistance Air: Defense, 26, 86, 87 Pollution, 16, 34, 113, 135, 140 Transportation, 32, 115, 118---119 Air Force, Department of the, 281 Aircraft: Procurement, 26, 27, 87, 88 Supersonic, civil, 32, 119 Technology, 101 Airlift, defense, 26, 85, 88 Alaska, Federal Development Planning Committees for, 422 Alaska Power Administration, 345 Alaska programs, 219 Alliance for Progress, 28, 92, 96 Allowances and adjustments in outlays, 25, 77, 79 American Battle Monuments Commission, 410 American Printing House for the Blind, 311 American Revolution Bicentennial Commission, 428 Apollo program, 19, 100-101 Apostle Islands National Parks, proposed, 31. 112 Appalachian Regional Commission, 118, 429, 431 Appalachian regional development programs, 115,220 Appeals courts, 211-212 Apprenticeship and Training, Bureau of, 359 Appropriations: Explanation, 192-193 Multiple year, 193 No year, 193 One year, 193 Architect of the Capitol, 202-204 Armed Forces, see Military personnel Arms Control and Disarmament Agency, U.S., 92,411 Arts and Humanities, National Foundation of the, 153, 436-437 Asia, economic assistance to, 18, 94-95 Asian Development Bank, 28, 97 Assets, monetary, definition of, 468 Assistance: · Economic development, 115, 117-118 Foreign, see Foreign assistance Public, 15, 18, 36, 134, 147, 149---151 Atlantic-Pacific lnteroceanic Canal Study Commission, 449 Atomic Energy Commission, 21, 81-82, 90--91, 394 Authority, budget, see Budget authority Authorizations: Contract, explanation, 192-193 Definite, explanation, 193 Indefinite, explanation, 193 Permanent, see Permanent authorizations To spend debt receipts, explanation, 193 Automatic da:ta processing activities, 396 545 ,300-000 ~ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 546 THE BUDGET FOR FISCAL YEAR 196 9 B Balance of payments, 11, 13, 28, 32, 93-94, 116 Balances: Budget, explanation, 194 Budget authority, summary, table, 60 Public enterprise funds, table, 486--487 Trust fund, 1966-68, June 30, table, 489 Basis for figures, 49 Biomedical research, 135 Blind, American Printing House for the, 311 Bonneville Power Administration, 109, 345, 352 Borrowing, definition of, 469 Borrowing by Government enterprise funds, table, 490-491 Botanic Garden, 205 Budget: Concepts, 8-9, 464-472 Coverage, 48, 467 Format, 2 Message of the President, 7-45 Purposes of, 473 Special allowances, 1967 and 1968, explanation, 194, 195 Special deductions, explanation, 195 Summary of, table, 8-10 Terms, explanation of. 192-194 Timing, adjustments and differences, 467-468, 478-479 Budget, Bureau of the, 42, 214 Budget authority: Analysis, table, 16 Balances, summary, table, 60 By agency, for each appropriation and fund account, 196--462 Completeness of estimates for 1968 and 1969, 194-195 Decreases, 18-19 Discussion, 17-19 Explanation, 192-193 Increases, 18-19 Outlays and, by function and agency, 174-189 Public enterprise funds, table, 484-485 Receipts offset against outlays and, table, 73-75 Relation to outlays, summary, table, 58 Requiring current action by Congress, summary, table, 57 Summary, by agency, table, 54-55 Summary, by function, table, 52, 53, 79 Total requested, 9, IO Budget Concepts, President's Commission on, 39-40, 218 Budget outlays: As a percentage of GNP, 12, 544 By function, 1958-69, totals, table, 25, 540 By program, table, 16 Controllability of, 15-16 Increase in, discussion, 14-17 Investment, operating, and other, analysis, 493-513 Proposed total, 9, IO Public enterprise funds, by agency, table, 483-484 Receipts, financing, debt, and, totals, table, 538 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1958-69, Budget outlays-Continued Receipts offset against budget authority and. table, 73-75 Relation of, in administrative budget, consolidated cash statement and unified budget, table, 466 Relation to budget authority, summary, table, 58 Summary, by agency and function, 52-55 Trust funds, table, 487-488 Business, advancement of, 31. 114-117 Business, regulation of, 115 Business, small, see Small business Business and Defense Services Administration. 257, 265 Business Economics, Office of, 253 C Cash, definition of, 468 Cash payments to the public as percent of GNP, 1940-68, table, 544 Cemeterial expenses, Army, 28 Census, Bureau of the, 117, 254-255 Census, Decennial, 1970, 1f7 Central Arizona project, 31, 109 Central Intelligence Agency, 411 Chamizal settlement, 371 Child care services, 36, 147, 149 Child and maternal health, 16, 34, 135, 139, 149 Civil Aeronautics Board, 115, 411-412 Civil defense, 277 Civil rights, 173 Civil Rights, Commission on, 415 Civil Service Commission, 170, 412-415 Civil War Centennial Commission, 428 Claims, Court of, 211 Coal Research, Office of, 113, 338, 351 Coast Guard, 44, 115, 376--377, 383 Coinage, Joint Commission on the, 449 Commerce, Department of, 20, 41, 115, 253-267 Commerce and industry, promotion of. 257- 259, 265 Commerce and Transportation: Discussion, 31-32 Expenditures, net lending, NOA and LA, by program and agency, table, 115 NOA and expenditures, by function and agency, table, 178-179 Program analysis, 114-123 Commercial Fisheries, Bureau of, 339-340, 351 Commission on Marine Sciences, Engineering, and Resources, 215 Commodity Credit Corporation, !05, 238-240 Commodity Exchange Authority, 236 Communications activities, General Services Administration, 397 Communications and intelligence, Defense, 85, 87 Community action programs, 35, 145-146 Community development: Discussion, 32-33 Expenditures, 79 Expenditures, net lending, NOA and LA, by agency or program, table, 124 547 INDEX Community development-Continued NOA and expenditures, by function and agency, table, 179-180 Program analysis, 123---125 Community Relations Service, 42 Compensation: Federal personnel, table, 531-533 President of the United States, 213 Vice President of the United States, 196 Comptroller of the Currency, Office of, 392 Computers, sharing of by schools, 38, 158 Concentrated Employment Program, 35, 144 Conservation, see Land; Water Consolidated cash statement: Debt outstanding, relation of, to administrative budget and unified budget, table, 469 Explanation of, 465-466 Relation of, to the administrative budget and the unified budget, table, 418, 466 Results under, compared with administrative budget, and flow of Government-administered funds, table, 472 Consolidation of funds, discussion, 49 Construction: Corps of Engineers, 19 Educational facilities, 20, 37, 158 Federal facilities, 21, 170-171 Federally financed, slowing of pace of, 17, 19 Health facilities, 19, 34, 135-136 Hospitals, Veterans', 16 I, 164-167 Military, 275-277 Power facilities, 107-110 Water resources, projects, 30-31, 107-110 Consumer Interests, President's Committee on, 363 Consumer and Marketing Service, 234-235, 250 Contract authorizations, explanation, 192-193 Cooperative State Research Service, 232, 249 Corporate tax, receipts, 67, 68 Corporate taxes, acceleration of payments, 13---14, 65-66 Corps of Engineers, 19, 31, 108, 283---285 Corregidor-Bataan Memorial Commission, 428 Cost reduction in Government, discussion, 44-45 Cost reduction program, Department of Defense--Military, 27, 81 Cotton acreage, 29, 105 Council of Economic Advisers, 215 Counseling and tutoring, disadvantaged students, 38, 157 Courts, 209-213 Credit, easing of, 11, 13, 65 Credit, mortgage, 327-329, 331 Credit programs, Federal: Agriculture, 105 Analysis, 514-528 Commerce and transportation, 116 Disbursements and repayments, by types of accounts, table, 518-521 Education, 154 Housing and community development, 125 Interest rates and maturities, by agency or program, December 1967, table 523-525 International, 93 New commitments for, by type of assistance and account, table, 516--517 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Credit programs, Federal-Continued Outstanding direct loans and guaranteed and insured loans, by type of account, table, 521-522 Private participation in, 24, 526 Sales and retirements of certificates of participation in loans, 526 Summary of Legislation, 527 Crime control, 16, 38-39, 173, 357 Crime in the District of Columbia, President's Commission on, 450 Criminal Laws, National Commission on Reform of, 450 Critical materials, 81-82 Customs, Bureau of, 387,392 Customs Court, 210 Customs and Patent Appeals, Court of, 210 D Deaf, education of, 31 1 Debt outstanding, 61, 469 Debt issuances, by Government enterprises, table, 490-491 Decennial Census, 1970, 117 Defense: Civil, 277 Critical and strategic materials activities, 81, 398 Department of-Civil, 283---291 Department of-Military, 44, 81-90, 268-282 National: Discussion, 26--27 Expenditures, 78 Expenditures, net lending and NOA, by program and agency, table, 81 Increase in outlays, 14 NOA and expenditures, by function and agency, table, 174 Program analysis, 80-91 Production for, 81-82, 221 Defense needs vs. domestic requirements, discussion, 7-8 Deficit or surplus: Administrative budget, 1789-1969, table, 542 Consolidated cash statement, 1940-68, table, Expenditure account, 9, 10 National income accounts, Federal sector, 1940-68, table, 473, 543 Unified budget, 9, 10, 13---14 Definite authorizations, explanation, 193 Definition of budget terms, 192-194 Delaware River Basin Commission, 430 Demonstrations and intergovernmental relations, 325-326 Development activities: Area and regional, 115, 117-118 Community, expenditures, 79 Districts, multicounty area, 30, 102, 107 Economic, 255-256, 265 Disarmament, see U.S. Arms Control and Disarmament Agency Disaster relief, 220 Disease prevention and control, 297-299 District of Columbia, 37, 39, 42, 416--417 District of Columbia, see also National Capital District courts, 211-212 548 THE BUDGET FOR FISCAL YEAR 196 9 Domestic programs, increases, 16 Domestic transfer payments, 1960--{)9, table, 477 Domestic requirements vs. defense needs, discussion, 7---a Dropouts, school, 37, 154-155 E Economic activity, level of, 474 Economic Advisers, Council of, 215 Economic assistance, foreign, see Foreign assistance Economic assumptions as base for revenue estimates, 64--{)5 Economic Development Administration, 41, 118 Economic development assistance, 255-256, 265 Economic Opportunity, Office of, 18, 36, 141. 145. 154. 227 Economic opportunity programs, 35-36, 134, 145 Economic Research Service, Agriculture, 234, 250 Economics and Statistics, Business, 253--255, 265 Economy, national. effect of expenditures on, discussion, 78-79 Economy, national. status of, 10-12 Education: Aid to federally impacted areas, 20, 22, 43-- 44, 155-157 As~istance to developing countries, 28 Books and equipment, decrease in grants for, 20, 155 Broadcasting, public, 38, 159 Children whose native language is not English, 37, 155 College students, grants, loans and workstudy opportunities, 37, 157 Counseling and tutoring, disadvantaged students, 38, 157 Deaf, 311 Discussion, 37-38 Dropouts, prevention of, 37, 154-155 Elementary and secondary, assistance for, 153, 154-157 Exchange program, 21. 92, 99, 372, 374 Expenditures, 79 Expenditures, net lending, NOA and LA, by program or agency, table, 153 Facilities, construction, 19, 20, 158 Handicapped children, 37, 154-155 Health manpower, 137 Higher, assistance for, 153, 157-158 Low income families, 37, 154 Manpower, 16, 37, 153, 159 Mentally retarded children, 155 NOA and expenditures, by function and agency, table, 181-182 Program analysis, 37-38, 152-160 Research and development, 16, 37, 153, 159 Science, assistance for, 153, 158 Sharing of resources by schools, 38, 158 Veterans, 161 Vocational, 153, 159 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Education, Office of, 157, 292-296 Elderly, see Aged Electric power programs, 107-110 Electrification, rural, financing, 20, 30, 103, 105 Elementary and Secondary Education Act, 37, 154-155 Emergency fund for the President, 221 Emergency Planning, Office of, 216-217 Emergency preparedness activities, 81---a2 Employees' Compensation, Bureau of, 361, 365 Employment, Federal civilian: Analysis, 529-535 By geographical location, as of June 1967, table, 531. 532 Compensation and benefits, table, 531-533 In relation to population and other Government employment, 1942--{)9, table, 534-535 Summary, full-time permanent, by agency, as of June 1967--{i9, 62, 529-531 Trends in workload and numbers, 533-534 Employment incentives for welfare recipients, 36, 150 Employment programs, 34-35, 144 Employment Security, Bureau of, 360 Employment tax, receipts, 14, 67, 68 Engraving and Printing, Bureau of, 388 Environmental health, 297-299 Environmental science services, 117 Environmental Science Services Administration, 259-260, 266 Equal Employment Opportunity Commission. 173. 417 Excise taxes, receipts, 67, 68 Excise taxes, proposed postponement of reductions, 13-14, 65-66 Executive Mansion, 214 Executive Office of the President, 213-219 Expenditures: 1958-69, totals, table, 538 Administrative budget: 1789-1969, totals, table, 542 By agency, summary, table, 470 Percent of GNP, 1940--{i8, table, 544 By agency, table, 54, 192-462 By function, 1958-69, table, 540 By function, summary, 25, 53 Deficit, 9, 10 Discussion, 48, 194 Effect of on economy, discussion, 78-79 National income accounts, Federal sector: 1940-68, totals, table, 543 1958-69, totals, table, 541 As part of GNP, table, 477, 543 Discussion, 480-482 Relation of unified budget to, 478 Trends, 473-476 Offset of receipts against, discussion, 49-50 Proposed, 9, 10 Relation of, in administrative budget, consolidated cash statement, and unified budget, table, 466 To finance agricultural exports, 479 Transactions not counted as, 50 Unified budget, as percent of GNP, 1958-68, table, 544 549 INDEX Export expansion programs, 32, 97-98, 115, 11&-I 17, 241-242 Export-Import Bank, 28, 92, 93, 97-98, 418 Expositions, U.S. participation in, 258-259 Extension service, 232, 249 F Family housing, military, 277 Family planning services, 16, 28, 34, 145-146, 149 Farm Credit Administration, 106, 419 Farmer Cooperative Service, 232, 233, 249 Farmers Home Administration, 10&-107, 243245, 251 Farms: Financing, 10&-107 Income stabilization, 30, 102-105 Operating loans, 20, 106 Federal activities, analysis by function, 78-189, Federal-aid highways, see Highway programs Federal assistance to the poor, 147 Federal Aviation Administration, 44, 115, 377-378 Federal Bureau of Investigation, 355 Federal civilian employment, see Employment, Federal civilian Federal Coal Mine Safety Board of Review, 420 Federal Communications Commission, 420-421 Federal Crop Insurance Corporation, 242, 243 Federal Deposit Insurance Corporation, 421 Federal Development Planning Committee for Alaska, 422 Federal finances and gross national product, 1940-68, table, 544 Federal funds, explanation, 192 Federal Highway Administration, 378-380, 382-383 Federal Home Loan Bank Board, 422-423 Federal Housing Administration, 124, 126, 128, 327 Federal Maritime Commission, 423 Federal Mediation and Conciliation Service, 424 Federal National Mortgage Association, 15, 21. 80, 124, 127-128, 327-329, 331 Federal Power Commission, 108, 424-425 Federal Prison System, 355-356 Federal Radiation Council. 425 Federal Railroad Administration, 121. 380-381 Federal Reserve System, 426 Federal Savings and Loan Insurance Corporation, 124, 126, 128 Federal sector accounts, see National income accounts, Federal sector Federal-State-local cooperation, 42-44 F ederal Supply Service, 396 Federal Trade Commission, 426-427 Federal Water Pollution Control Administration, 42, 108, 347 Financing: Means of, 10, 61 Other than borrowing, 469-470 Receipts, outlays, debt, and, 1958-69, totals, table, 538 Relation of new and old budget concepts, 468 Fine Arts, Commission of, 415 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Fiscal operations of government, central, 169-171 Fiscal program, discussion, 10-19 Fish and wildlife resources, 108 Fish and Wildlife Service, 339-343 Food and Drug Administration, 292 Food and Fiber, National Advisory Commission on,449 Food for Freedom, 28, 92, 93, 98-99, 105 Food Marketing, National Commission on, 449 Food stamp program, 37, 134 Foreign affairs, conduct of, 91-99, 369-370, 373-374 Foreign Agricultural Service, 236 Foreign assistance: Agricultural, 241-242 Economic, 18, 27-28, 91-98, 224-226 Military, 81, 85, 90, 93-94 Self-help measures as a condition for recipients, 27 Foreign Claims Settlement Commission, 92, 93, 427 Foreign direct investment control, 263 Foreign information and exchange activities, 92, 99 Forest highways, 20, 121 Forest resources, 108, 111-112 Forest Service, 108, 247-248, 251 Former Presidents, see President of the United States Freedmen's Hospital, 312 Funds, types of, explanation, 192 Funds appropriated to the President, 219-230 G Gallaudet College, 311 Gas, Office of Oil and, 338 General Accounting Office, 207 General fund, explanation, 192 General government: Discussion, 38-39 Expenditures, net lending, NOA and LA, by program or agency, table, 170 NOA and expenditures, function and agency, table, 183-185 Programs, analysis, 169-173 General Services Administration, 21, 171-172, 395-401 Geological Survey, 33&-337, 351 Government-administered funds: Gross flow of. 471-472 Purchases of U.S. securities, table, 492 Results under, compared with administrative budget, unified budget and consolidated cash statement, table, 472 Government civilian employment, Federal, State, and local in relation to population 1942-69, chart, table, 534-535 Government enterprises, borrowing by, table, 490-491 Government organization, discussion, 41 Government Printing Office, 207 Grants-in-aid, 1960-69, table, 477 Gross National Product: Administrative budget as a percent of, I 94068, table, 544 550 THE BUDGET FOR FISCAL YEAR 196 9 Gross National Products-Continued Federal finance and, 1940--o8, table, 544 National income accounts, federal sector, as a percent of, I 940--o8, table, 543 National income accounts, Federal sector, as a percent of, 1952-68, table, 477 Payments to public as a percent of, I 940--o8, table, 544 Public debt as a percent of, 1958--o8, table, 544 Unified budget as a percent of, I 958--o8, table, 544 Grossing and netting, national income accounts, Federal sector, 478 Grossing of proprietary receipts from the public, 467 Guaranteed and direct loans, 521-522 H Handicapped, education of the, 37, 154-155, Head Start, 35, 145-146, 154 Health: Activities, reorganization, Department of Health, Education and Welfare, 34, 135 Assistance to developing countries, 28 Child and maternal, 16, 34, 135, 139, 149 Discussion, 34 Expenditures, net lending, NOA and LA, by program or agency, table, 134 Facilities, construction, 19, 134, 135-136 Manpower, 34,134, 136--137, 297 NOA and expenditures, by function and agency, table, 180-181 Occupational, 35, 140 Program, analysis, 133-152 Research, 34, 133-135 Resources, table, 136 Services, 133-135, 299-300 Health, Education, and Welfare, Department of, 19, 20, 22. 34. 41, 135, 141. 149, 292-320 Health, labor and welfare programs, expenditures, 78-79 Health, National Institutes of, 300-303 Helicopter procurement, 26, 86, 87 High speed ground transportation, 32, 118 Highway programs, 115 Highway safety, 32, 121 Historical and memorial commission, 428 Home Rule, District of Columbia, 39 Hospitals: Freedmen's, 312 General, 136 Veterans', 38, 161. 164-167 House of Representatives, 198-200 Housing: Assistance, 320-323 Discussion, 32-33 Expenditures, 79 Expenditures, net lending, NOA and LA, by program or agency, table, 124 Military, 277 NOA and expenditures, by function and agency, table, 179--180 Private, aids to, 124, 125-127 Program analysis, 123-133 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Housing-Continued Public, 124-126 Rural, !06--!07 Veterans', 161 Housing and Urban Development, Department of, 21, 22. 41. 124, 320-33 I Howard University, 312 Humanities, National Foundation on the Arts and, 153, 436--437 Hurricane disaster, Southeast, 229 Immigration, Western Hemisphere, Select Commission on, 451 Immigration and Naturalization Service, 355 Income tax, surtax on, 13, 65-66, 474 Income taxes, receipts, 67 Indefinite authorizations, explanation, 193 India, economic assistance to, 28, 95 Indian Affairs, Bureau of, 108, 333-335, 350 Indian Claims Commission, 429 Indian lands, 111 Industry and commerce, promotion of, 257-259, 265 Inflationary pressures, control of, discussion, JO-I I. 13, 64-65 Information Agency, United States, 92, 452--453 Intelligence and communications, Defense, 85, 87 Inter-American Development Bank, 28, 97 Interest: Analysis of payments, table, 168-169, 513 Increase in outlays, 15 NOA and expenditures, by function and agency, table, 183 Public debt, budget authority for, 9, 391 Rates: Evaluation of water projects, 22, 31. !09 Increased ceiling for VA and FHA mortgages, proposed, 33, 125 Lower, need for, discussion, 11. 13 lnterfund and intragovernmental transactions, discussion, 49, 69, 73, 192, 467, 539 Intergovernmental cooperation, discussion, 42- 44 Intergovernmental relations, 325-326 Intergovernmental Relations, Advisory Commission on, 429 Interior, Department of the, 21. 108, 141. 332- 353 Internal Revenue Service, 169-170, 389-390 International affairs and finance: Commerce, 257, 265 Discussion, 27-28 Financial institutions, 221-222 Expenditures, net lending, NOA and LA. by program and agency, table, 92 NOA and expenditures, by function and agency, table, I 75 Program analysis, 91-99 International Agricultural Development Service, 236 International Boundary and Water Commission, I 08, 371 International commissions, 371 551 INDEX International Development, Agency for, see Agency for International Development International Development Association, 28, 97 International Labor Affairs, Bureau of, 362 International organizations and conferences, 370-371, 374 Interstate Commerce Commission, 432--433 Interstate Commission on the Potomac River Basin, 430 lntragovernmental and interfund transactions, discussion, 49, 69, 73, 192, 467, 539 lntragovernmental funds, explanation, 192 Investment, operating, and other budget outlays, analysis, 493-513 Investment in U.S. securities, Governmentadministered funds, table, 492 J Joint Funding Simplification Act, 43 Judicial functions of government, 169, 170 Judiciary, The, 209-213 Justice, Department of, 21, 92, 173, 354-358 Juvenile delinquency, 39 Legislative functions, 169, 170 Lending, see Credit programs: Net lending Lewis and Clark Trail Commission, 428 Libraries, sharing by schools, 38, 158 Library of Congress, 153, 205-206 Loan account: Discussion, 49 Budget authority and outlays, summary, by agency, table, 54-55 Budget authority and outlays, summary, by function, table, 53 Loan authority, by agency, for each appropriation and fund account, 196--462 Loan authority, discussion, 17-19, 185-189, 192-193 Loan programs, Federal, see Credit programs; Foreign assistance Loans, direct and guaranteed, 521-522 Lunar manned landing and exploration, 29, IOO-IOI M Management funds, explanation, 192 Management improvement, expenses of, 41--45, 221 L Labor, Department of, 22, 42, 44, 170, 359-366 Labor, welfare and health programs, expenditures, 78-79 Labor Affairs, International, Bureau of, 362 Labor-Management Policy, President's Advisory Committee, on 439 Labor-Management Services Administration, 361 Labor and manpower: Discussion, 34-35 Expenditures, net lending, NOA and LA, program or agency, table 134 NOA and expenditures, by function and agency, table, 180-181 Program analysis, 140-145 Labor Standards, Bureau of, 361 Labor standards, wage and, 365 Labor Statistics, Bureau of, 361, 365 Land Management, Bureau of, 108, 332-333, 350 Land resources, !06, !07-111 Land and Water Conservation fund, 31, 112 Latin America, economic assistance to, 18, 28, 96 Law enforcement, 39, 173 Law Enforcement, President's Commission on, 450 Legislation, proposed: Corporate tax payments, acceleration of, 13-14, 65--o6 Estimated effect of, on receipts from the public, table, 65-66 Excise taxes, postponement of reductions in, 65-66 Surtax on individual and corporate income tax, 8, 13, 65-66 User charges, 14, 32, 67, 69 Legislative branch, 196-209 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Manned space flight, 39, 99-IOl Manpower Administration, Labor Department, 44, 359-360, 364-365 Manpower programs: Cooperation of private industry, 32, 35, 140 Discussion, 18, 34-35 Education professions, 16, 37, 153, 159 Health professions, 34, 134, 136-137, 297 Labor Department, 35, 141-145 State and local planning, 35, 144 Marine Resources and Engineering Develop• ment, National Council on, 215 Marine Science, Engineering and Resources, Commission on, 215 Maritime Administration, 115, 262-263, 266 Maritime Commission, Federal, 423 Mars, unmanned exploration, 29, IOI Maternal and child health, 16, 34, 135, 139, 149 Means of financing budget, 61 Medical care, Veterans, 161, 164-166 Medicaid, 34, 133-135, 137-139 Medicare, 18, 133-135, 137-139 Mental Health, National Institute of, 303 Mental health centers ,34, 136 Mentally retarded, education of, 155 Metropolitan development, 124, 131, 323-325 Mexican-American Affairs, Inter-Agency Committee on, 218 Migrant and refugee assistance, 373 Military assistance, 81, 85, 90, 93-94, 222-223 Military construction, 275-277 Military pesonnel: Active Forces, strength and composition table, 83-84 Discussion, 26, 81, 268-269 Southeast Asia, 1964-67, 83 Total numbers, 1964-67, 83 Mineral receipts, Outer Continental Shelf, 31, 111-112 Mineral resources, !08, 113, 336-338, 351 552 THE BUDGET FOR FISCAL YEAR 1969 Mines, Bureau of. I08, 337-338, 351 Mining, surface, system for regulation of, proposed, 31, 113 Mint, Bureau of, 171, 388 Missile procurement, 26, 86 Model Cities program, 16, 19, 33, 42, 124, 129- 130 Model Secondary School for the Deaf, 311 Monetary assets, definition of, 468 Moon exploration, 29, 100-101 Mortgage credit, 327-329, 331 Mortgage market, secondary, transfer of ownership of Government activities in, 22, 33, 128-129 Multicounty area development districts, 30, 102, 107 Multiple-year appropriations, explanation, 193 N Narcotics, Bureau of, 389 National Advisory Commission on Food and Fiber, 449 National Advisory Commission on Rural Poverty, 218 National Aeronautics and Space Administration, 19, 21, 44, 401-403 National Aeronautics and Space Council, 215 National Agricultural Library, 246, 251 National Archives and Records Service, 397, 401 National Bureau of Standards, 260-261, 266 National Capital Housing Authority, 433 National Capital Planning Commission, 434- 435 National Capital region, 124, 132-133 National Capital Transportation Agency, 436 National Commission on Food Marketing, 449 National Commission on Reform of Federal Criminal Laws, 450 National Commission on Technology, Automation, and Economic Progress, 450 National Council on Marine Resources and Engineering Development, 215 National defense, see Defense National economy, see Economy, national National Foundation on the Arts and the Humanities. 436-437 National Guard, 88 National income accounts, Federal sector: Expenditures as a percent of GNP, 1952-68, table, 477 Expenditures as a percent of GNP, 1940-68, table, 543 Explanation, 473 Receipts and expenditures: 1940-68, totals, table, 543 1958-69, totals, table, 541 By category, 479-482 Relation to GNP, 476-479 Trends and size of major components, 473-476 National National National National Institutes of Health, 300--303 Labor Relations Board, 437 Mediation Board, 438 Park Service, 342-343, 352 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis National Scenic Rivers System, proposed, 31. 112 National Science Foundation, 21, 153, 438 National Security Council, 216 National Technical Institute for the Deaf, 311 National Transportation Safety Board, 381, 384 National Visitor Center Study Commission, 450 National Water Commission, proposed, 31, 107 Nationwide system of trails, proposed, 31, 112 Natural resources: Discussion, 30-31 Expenditures, net lending, NOA and LA, by program or agency, table, 108 NOA and expenditures, by function and agency, table, 177 Program analysis, 107-114 See also particular resources. Navy, Department of the, 281 Neighborhood centers, 35, 146 Neighborhood facility grants, 124, 131 Net lending: 1958-69, totals, table, 538 By agency, for each appropriation and fund account, 196-462 By function, 1958-69, totals, table, 540 By function and agency, table, 25, 185-189 Discussion, 80 Explanation, 194 Proposed, 9, 10 Netting and grossing, national income accounts, Federal sector, 478 New obligational authority: By agency, for each appropriation and fund account, 196-462 Discussion, 17-19 Explanation, 192-193 No-year appropriations, explanation, 193 North Cascades National Park, proposed, 31, 112 Nuclear materials, production, 21, 91 Nuclear rocket engine, 21, IOI 0 Obligational authority, new, see New obligational authority Obligations: Explanation, 192-194 Incurred, net, by agencies, table, 59 Obscenity and Pornography, Commission on, 449 Occupational health and safety, 35, 140 Ocean shipping, 262-263, 266 Oil and Gas, Office of, 338 One-year appropriations, explanation, 193 Open space grant program, 124, 131 Outdoor Recreation, Bureau of, 108, 335, 350 Outer Continental Shelf, mineral receipts, 31, 111-112 Outlays, budget.see Budget outlays Outstanding debt, 61 p Pacific Islands, Trust Territories of, 173 Packers and Stockyards Administration, 245 553 INDEX Pakistan, economic assistance to, 28, 95 Panama Canal. 286----287 Park Service, National. 108, 342-343, 352 Participation certificates, 80, 464 Participation sales, Federal credit programs, 24,526 Patent Appeals, Court of, 210 Patent Office, 260 Payments to the public, percent of GNP, 1940-68, table, 544 Payments to the public, totals, table, 471 Peace Corps, 92, 98, 228 Pensions, veterans, 15, 38, 41, 161. 162-163 Permanent authorizations, explanation, 193 Personal property activities, 396----397 Personnel, Federal: Central management, 172-173 Compensation and benefits, table, 531-533 Full time permanent, summary, table, 62, 530 Pay raise for, 15, 18 Retirement, 477-478 Total, table, 531 Personnel, military, see Military personnel Philippine education program, 228 Planning-programing-budgeting system, discussion, 40-41 Political Activity of ·Government Personnel, Commission on, 449 Pollution, air, 16, 34, 113, 135, 140 Pollution, water, 16, 30-31, 107-108, 111, 113, 347, 352 Post Office Department, 19, 45, 367-368 Postal Organization, President's Commission on, 217 Postal service, 115, 121-123 Poverty, rural, 30, 102 Povery, Rural, National Advisory Commission on, 218 Poverty programs, 16, 35-37, 145-147 Power resources, electric, 107-110 Power and water development, 343-346, 352 Preparedness, emergency, activities, 81, 82 President of the United States: Compensation, 213 Facilities for former Presidents, 399 Funds appropriated to the, 219-230 President's Commission on Budget Concepts, 218, 464 President's Commission on Postal Organization, 217 President's Committee on Consumer Interests, 363 Price support programs, 102-105 Private industry cooperation in manpower programs, 31, 35, 140 Procurement, defense: Aircraft, 26, 27, 87, 88 Expenditures, net lending and NOA, summary table, 81 Helicopters, 26, 86, 87 Military, 272-274 Missiles, 26, 86 Ships, 26, 87, 88 Uranium concentrates, 90-91 Product Safety, National Commission on, 449 Production for defense, 81 -S2, 221 Program reductions and reforms, 7-S, 17, 19-23 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Property management and disposal activities, 171-172, 395-400 Proprietary receipts, 1958-69, totals, tables, 539 Proprietary receipts, grossing under new budget concept, 69, 73-74, 467 Public assistance, 15, 18, 36, 134, 147, 149-151 Public Buildings Service, 170-171, 395 Public debt: Discussion, table, 23-24 End of year, 1789-1969, table, 542 Gross, 10 Held by public, I0 Interest on, 9, 168, 391 Outstanding, 10, 61 Percent of GNP 1958-68, table, 544 Receipts, outlays, financing, and 1958-69, totals, table, 538 Public Debt, Bureau of the, 389 Public enterprise funds: Analysis, 483-492 Balances, table, 486----487 Budget authority, table, 484-485 Explanation, 192 Gross outlays and applicable receipts, by agency, table, 483-484 Public facilities development, 21, 124, 131-132 Public Health Service, 42, 296----305, 318 Public housing programs, 124-126 Public Land Law Review Commission, 451 Public land management, 332-336, 350 Public service career training, 43, 73 Public works acceleration, 229 Puerto Rico, Commission on Status of, 430,431 Purchases of U.S. securities by Governmentadministered funds, table, 492 R Railroad Retirement Board, 439-441 Rama Road, Nicaragua, 373 Readjustment benefits, veterans', 38, 161. 163- 164 Real property management, 395-396, 400 Reappropriations, explanation, 193 Reauthorizations, explanation, 193 Receipts: Administrative budget, 1789-1969, totals, table, 542 Administrative budget, by source, summary, table, 470 Analysis, 64-75 By source, table, 67-69 By source, 1958-69, table, 539 Consolidated cash statement, 1940-68, table, Definition, 469 Economic base of estimates, 64-65 Estimated, 9, 10, 13-14 Estimated effect of proposed legislation on, 65-66 From the public, proprietary, by source, table, 73-74, 467 National income accounts, Federal sector: 1940-68, totals, table, 543 1958-69, totals, table, 541 Discussion, 479-480 Relation of unified budget to, 478 554 THE BUDGET FOR FISCAL YEAR 196 9 National income accounts, Federal sectorContinued Offset against budget authority and outlay, table, 73-75 Offset against expenditures, discussion, 49-60 Public enterprise funds, by agency, table, 483-484 Relation of. in administrative budget, consolidated cash statement, and unified budget, table, 466 Summary, by source, table, 52, 471 Tabular presentation, changes in, 69 Transactions not counted as, 50 Trends, 473-474 Trust funds, 487-488 Unified budget, by source, table, 70-72 Reclamation, Bureau of, 31, 108, 343-345, 352 Records activities, General Services Administration, 397, 401 Recreation, Outdoor, Bureau of, 335, 350 Recreational resources, 108, 112 Redwoods National Park, proposed, 31. 112 Regional development, 115. 117-118 Renegotiation Board, 441 Rent supplement, low-income tenants, 124, 126-127 Reorganization plans, authority to transmit, 42 Repayments, major Federal credit programs, table, 518-521 Research: Agricultural. 20, 107 Basic, assistance to, 153, 158 Basic, Atomic Energy Commission, 91 Biomedical. 135 Defense, Department of, 274-275 Education, 16, 37 Health, 34, 133-135 Space, 28-29, 99-101 Urban and housing problems, 32, 33, 124, 132. 326 Water resources, 107-108, 111 Research and development, education, 153, 159 Research and development, defense, 27, 81. 85, 88-89 Reserve Forces, Defense, 88 Resources, natural. see under particular kinds Resume, budget, table, 52 Retirement and social insurance, 134, 147-149 Revenues, estimated, see Receipts Revolving funds, explanation, 192 Revolving funds, military, 278-280 Rural Community Development Service, 245 Rural electrification, financing of, 30, 103, 105 Rural Electrification Administration, 30, I05, 243 Rural housing, I06-107 Rural poverty, 30, 102 Rural Poverty, National Advisory Commission on, 218 Rural telephones, financing of, 103, 105 Ryukyu Islands, Army, 286 s Safe Streets and Crime Control Act, 38-39, 173 Safety, highway, 32, 121 Safety, occupational, 35, 140 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Saint Lawrence Seaway Development Corporation, 381 Saline Water, Office of, 108, 347, 352 Saturn V program, 29, 100, 101 Scenic areas, preservation of, 31. 112 Schools: Aid to federally impacted areas, 20, 22, 43-44, 155-157 Books and equipment, decrease in grants for, 37, 155 Dropouts, 37, 154--155 Science education, assistance for, 153, 158 Science and technology, 259-261. 266 Science and Technology, Office of, 217 Sealift, defense, 26, 85, 88 Secret Service, U.S .. 390-391 Securities, U.S., purchases of, by Governmentadministered funds, table, 492 Securities and Exchange Commission, 442 Seigniorage, 69 Selective Service System, 81-82, 443 Self-help measures, recipients of U.S. assistance, 27, 98 Senate, 196-198 Sewer and water loans, 20, 106 Ships: Construction, Commerce, 20, 119-120 Construction and conversion, naval, 86-87 Fast deployment logistics, 26, 88 Procurement of, naval, 26, 86-87 Small business, assistance, 115, 117 Small Business Administration, 21. 22, 117, 444--445 Smithsonian Institution, 153, 445-447 Social and Rehabilitation Service, 42, 149, 306-309 Social and retirement insurance, 14, 134, 147- 149 Social Security Administration, 310, 315-318 Social security program, 36, 147-149 Soil Conservation Service, I06, 108, 233, 250 Soldiers' Home, 288-289 South Vietnam, see Vietnam Southeast Asia, economic assistance to, 28, 95 Southeast Asia, forces deployed, 1964-67, 83 Southeast hurricane disaster, 229 Southeastern Power Administration, I 09, 346 Southwestern Power Admin~tration, 346 Space research and technology: Defense, Department of-Military, 89 Discussion, 28-29 Expenditures and NOA, by program, table, 99 NOA and expenditures, by function and agency, table, 175-176 Program analysis, 99-101 Special funds, explanation, 192 Special Representative for Trade Negotiations, 218 Sport Fisheries and Wildlife, Bureau of, 341, 351 Standards, National Bureau of. 260-261, 266 State, Department of, 21, 92, 369-375 State and local governments, Federal agency cooperation with, 42-44 Statistical Reporting Service, Agriculture, 234, 250 Statistics, economic and demographic, 32, 117 555 INDEX Statistics, business, Commerce, 253-255, 265 Statistics, Labor, BW'eau of, 361, 365 Strategic forces, Defense, 26, 85 Strategic materials, 81-82 Subversive Activities Control Board, 447 Summary tables, explanation, 48 Supersonic air transport, civil, 32, 119 Supplemental estimates, 1968 and 1969, explanation, 194-195 Supreme Court of the United States, 209-210 Surplus or deficit, Administrative budget, 17891969, table, 542 Surplus or deficit, National income accounts Federal sector, 1940-68, table, 543 T Tariff Commission, 92,448 Tax: Corporate, proposed payments, acceleration, 13-14, 65-66 Excise, proposed postponement of reductions, 13-14, 65--66 Income, proposed surtax, 8, 13, 65-66, 474 Policy, 1960's, discussion of, 11. 64--65 Proposals, estimated effects of on receipts, table, 65--66 Receipts, 67--69 Tax Court of the United States, 448 Teacher Corps, 37, 155 Technical Services, State, Office of, 261 Technology and Science, 259-261, 266 Technology, urban, 326 Telephones, rural, financing, 30, 103, 105 Tennessee Valley Authority, 108,451 Territories, Office of, 335-336 Trade Negotiations, Special Representative for, 218 Training and work programs, 134 Training, Defense, Department of-Military, 89 Training, veterans, 161 Transactions not counted as receipts or expenditures, 50 Transfer payments, domestic, 1960--69, table, 477 Transportation: Air, 32, 115, 118-119 Expenditures, net lending, NOA and LA, by program or agency, table, 115 General Services Administration activities, 397 Ground, 32, 115, 120 Program analysis, 118-123 User charges, 14, 32, 65-66, 67, 69 Water, 115, 119-120 Transportation, Department of, 22, 42, 118-122, 376-385 Transportation Safety Board, National, 381, 384 Travel Service, U.S., 259 Treasurer, Office of the, 390 Treasury, Department of the, 92, 170-171. 385-393 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trust funds: Agriculture, Department of, 249-250 American Battle Monuments Commission, 410 Analysis, 487-489 Appalachian Regional Commission, 431 Atomic Energy Commission, 394 Balances, table, 489 Budget, authority, 9 Civil Service Commission, 414 Civil War Centennial Commission, 428 Commerce, Department of, 264-266 Defense, Department of-Civil, 285,288-289 Defense, Department of-Military, 281 Explanation, 192 Federal Communications Commission, 421 Federal Deposit Insurance Corporation, 421 Federal Reserve System, Board of Governors, 426 Foreign Claims Settlement Commission, 427 Funds appropriated to the President, 223, 226,227,228 General Services Administration, 400-401 Health, Education, and Welfare, Department of, 315-319 Housing and Urban Development, Department of, 331 Interior, Department of the, 350-353 Judiciary, The, 213 Justice, Department of, 357-358 Labor, Department of, 364-365 Legislative Branch, 208 National Aeronautics and Space Administration, 402 National Capital Planning Commission, 435 National Foundation on the Arts and the Humanities, 437 National Science Foundation, 438 Outlays, by fund, table, 487-488 Puerto Rico, Commission on the Status of, 431 Railroad Retirem~t Board, 439-440 Receipts, 487-488 Smithsonian Institution, 446 State, Department of, 373-375 Tax Court of the United States, 448 Transportation, Department of, 382-384 Treasury, Department of the, 392 United States Information Agency, 453 Veterans Administration, 408-409 Water Resources Council, 454 Trust revolving funds, explanation, 192 Trust Territories of the Pacific, 173 u Unemployment insurance, improvement of, 35, 148 Unified budget: Concept, discussion, 8-9 Debt outstanding, relation of, to consolidated cash statement and administrative budget, table, 469 Explanation of, 464 556 THE BUDGET FOR FISCAL YEAR 196 9 Unified budget-Continued Financing, relation of, to the administrative budget and the consolidated cash statement, table, 468 Receipts, by source, table, 70---72 Relation of, to administrative budget and consolidated cash statement, table, 466 Relation of, to national income accounts, Federal sector, 476-479 Results under, compared with administrative budget, consolidated cash statement and flow of Government-administered funds, table, 472 United States Arms Control and Disarmament Agency, 411 United States Information Agency, 99, 452-453 United States Secret Service, 390---391 United States Travel Service, 259 Upward Bound project, 35, 147, 157 Uranium concentrates, procurement of, 90-91 Uranium miners, compensation for, 21, 35, 140 Urban planning and development, 124, 129-132 Urban renewal programs, 32-33, 124, 129, 320--- Vietnam conflict-Continued Forces deployed for 1964-67, 83 Veterans' readjustment benefits, 38, 161, 163--164 Virgin Islands Corporation, 349 Vocational education, 153, 159 Vocational rehabilitation, 33, 41, 134, 149, 151 Voyager program, 29, IOI w Wage and Hour Division, 361 Wage and labor standards, 361, 365 Washington Metropolitan Area Transit Authority, 431 Water Commission, National, proposed, 31, 107 Water facilities grants, 20-21, 124, 131 Water Pollution Control Administration, Federal, 347 Water Resources Council, 31,454 Water resources: Agriculture, 106 Pollution, 16, 30---31, 107-108, 111, 113, 347, 323 352 Urban technology and research, 33, 326 Urban transportation, reduction of congestion, Programs, 30---31, 107-111, 343--346, 352 Projects, interest rate in evaluation of, 22, 31 Transportation, 115, 119-120 Water Resources Research, Office of, I08, 349 Watershed protection programs, 20, 106, I 09 Welfare: Expenditures, 78-79 Expenditures, net lending, NOA and LA, by program or agency, table, 134 NOA and expenditures, by function and agency, table, 180---181 Program analysis, 149-151 Western Hemisphere Immigration, Select Commission on, 451 Wheat acreage, 29, 105 White House Office, 213 Wholesome Meat Act, 30, 107 Wildlife resources, I 08 Wildlife, see also Fish and Wildlife; Sport Fisheries and Wildlife Work-study programs, college students, 37, 157 Work training programs, 134 World Health Assembly, 370 32,120 Urban transportation program, 124, 131 User charges, 14, 32, 65-66, 67, 69, 119, 121 V Veterans Administration, 22, 141, 157, 403-409 Veterans' benefits and services: Discussion, 38 Expenditures, net lending, NOA and LA, by program or agency, table, 161 NOA and expenditures, by function and agency, table, 182-183 Pensions, 15, 41 Program analysis, 160-167 Vice President of the United States, 196 Vietnam, economic assistance to, 95 Vietnam conflict: Coast Guard role in, 119 Cost of, 12 Discussion, 26 Expenditures, 78, 82-83 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0
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