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THE BUDGET OF THE UNITED STATES GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30 1966 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1965 For Sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C., 20402 - Price $1.75 (Paper Cover) A NOTE ON THE FORMAT OF THE BUDGET The Budget oj the United States Government is presented in a compa volume containing the Budget Message of the President and oth significant data to place before the Congress the President's budgeta recommendations. This volume contains the facts and figures th most users of the budget would normally need or desire. Additional information used by the Appropriations Committees the Congress, and reference materials useful to those concerned wi details, will be found in a further volume, entitled The Budget of t United States Government—Appendix. The Appendix contains t text of appropriation language, schedules, and narrative statements program and performance for the individual appropriations ai funds. It also contains those supplementary schedules required 1 law with respect to details of personnel compensation. The budget for the District of Columbia is printed separately usual. Budget documents for the fiscal year 1966, 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, 1966 ($1.75). 2. The Budget of the United States Government, 1966— Appendix ($6.25). 3. The Budget of the United States Government, 1966— The District of Columbia (40 cents). 4. The Budget in Brief, 1966 (30 cents). TABLE OF CONTENTS Page PART 1. THE BUDGET MESSAGE OF THE PRESIDENT 5 PART 2. SUMMARY TABLES Table 1. Budget resum6 Table 2. Receipts from and payments to the public Table 3. New obligational authority by type and function Table 4. New obligational authority by agency Table 5. Expenditures by agency r Table 6. Investment, operating, and other expenditures Table 7. Federal receipts and expenditures in the national income accounts Table 8. Relation of authorizations to expenditures Table 9. Obligations incurred, net, by agency___ Table 10. Balances of obligational authority Table 11. The public debt Table 12. Civilian employment in the executive branch __ 33 35 36 37 38 39 40 41 42 44 45 46 47 PART 3. RECEIPTS Analysis of receipts by source Table 13. Sources of receipts 49 50 56 PART 4. THE FEDERAL PROGRAM BY FUNCTION 63 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 14. New obligational authority and expenditures by function and agency -- PART 5. T H E FEDERAL PROGRAM B Y AGENCY Explanation of means of financing agency activities Analysis of new obligational authority and expenditures by agency Legislative branch The Judiciary Executive Office of the President Funds appropriated to the PresidentDepartment of Agriculture Department of Commerce Department of Defense—Military Department of Defense—Civil Department of Health, Education, and Welfare Department of the Interior Department of Justice _ _ > 64 68 79 86 89 94 99 107 113 123 128 133 133 138 153 154 158 158 171 174 178 184 202 214 225 230 249 269 __ 3 T H E BUDGET FOR FISCAL YEAR 1966 PART 5. THE FEDERAL PROGRAM BY AGENCY—Continued Analysis of new obligational authority and expenditures by agency—Continued Department of Labor Post Office Department Department of State r Treasury Department Atomic Energy Commission Federal Aviation Agency General Services Administration Housing and Home Finance Agency National Aeronautics and Space Administration Veterans Administration Other independent agencies District of Columbia.. __ Special allowances Trust funds Memorandum—Annexed budgets page 272 279 280 286 293 294 295 301 307 308 311 332 334 335 352 PART 6. SPECIAL ANALYSES A. Three measures of Federal financial transactions B. Public enterprises, trust funds, and gross expenditures of the Government C. Civilian employment in the executive branch D. Investment, operating, and other expenditures E. Federal credit programs F. Federal activities in public works G. Federal health programs H. Federal research, development, and related programs I. Federal aid to State and local governments J. Principal Federal statistical programs K. Foreign currency availabilities and uses L. International transactions of the Federal Government 355 356 366 376 384 404 417 432 443 462 472 476 482 _. PART 7. HISTORICAL TABLES Table 15. Administrative budget totals and public debt, 1789-1966. _ Table 16. Consolidated cash totals and Federal sector of the national income accounts, 1940-66 Table 17. Administrative budget and trust fund receipts, 1955-66_.., Table 18. Administrative budget and trust expenditures by function, 1955-66 Table 19. Receipts from and payments to the public, 1955-66 Table 20. Federal receipts and expenditures in the national income accounts, 1955-66 489 490 INDEX 501 GENERAL NOTES 1. The estimates in the budget cover requirements under existing legislation and under legislation which is proposed for enactment by the 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. 4. Pursuant to Public Law 88-638, approved October 8, 1964, the Food for Peace program authorized by Public Law 83-480 is treated in this budget as part of the International Affairs and Finance function. In prior budgets, sales of agricultural commodities under titles I and IV of Public Law 83-480 were included in the function Agriculture and Agricultural Resources. 491 492 493 498 499 PART 1 THE BUDGET MESSAGE OF THE PRESIDENT 6 THE BUDGET FOR FISCAL YEAR Composition of Federal Payments 1966 BUDGET MESSAGE OF THE PRESIDENT To the Congress of the United States: I am presenting to you today the budget of the United States for the fiscal year 1966. A budget is a plan of action. It defines our goals, charts our courses, and outlines our expectations. It reflects hard decisions and difficult choices. This budget is no exception. It is a budget of priorities. It provides for what we must do, but not for all we would like to do. It is a budget of both opportunity and sacrifice. It begins to grasp the opportunities of the Great Society. It is restrained by the sacrifices we must continue to make in order to keep our defenses strong and flexible. This budget provides reasonably for our needs. It is not extravagant. Neither is it miserly. It stands on five basic principles: • Government fiscal policies must promote national strength, economic progress, and individual opportunity. • Our tax system must continue to be made less burdensome, more equitable, and more conducive to continued economic expansion. • The Great Society must be a bold society. It must not fear to meet new challenges. It must not fail to seize new opportunities. • The Great Society must be a compassionate society. It must always be responsive to human needs. • The Great Society must be an efficient society. Less urgent programs must give way to make room for higher priority needs. And each program, old and new, must be conducted with maximum efficiency, economy, and productivity. The major features of the 1966 budget translate these principles into action. First, excise taxes are substantially reduced. Social security benefits, including hospital insurance, are increased. These are combined wTith other expenditure increases to yield an overall fiscal policy designed to maintain our steady economic expansion. Second, the budget supports a massive defense establishment of steadily growing power, within reduced outlays. Third, our international and space programs are being advanced at a satisfactory rate, but with smaller increases than in earlier years. 8 THE BUDGET FOR FISCAL YEAR 1966 Fourth, expanded programs and higher expenditures are proposed to: • Provide better and more education for our children. • Extend the war against poverty. • Promote advances in the Nation's health. • Improve conditions in the urban areas where most of us live. • Help the Appalachian region lift itself out of its present depressed condition. • Strengthen our social security protection. • Increase economic opportunities in rural communities. • Encourage sound use of our natural resources. • Conserve natural beauty in our land. Fifth, a large part of the funds for needed program expansion has come from savings, reductions, and economies in other parts of the budget. FISCAL POLICY This budget recognizes that a growing economy is needed to promote national strength and progress. It is also needed to move us toward a balanced budget. When the economy slows down, Federal revenues fall and spending tends to increase. The result is larger, not smaller, budget deficits. Nearly 4 years ago, this Nation began its fourth postwar economic expansion. With the help of last year's income tax reduction—the largest and most comprehensive ever enacted—this expansion has already outlasted each of the previous three postwar recoveries. During the past 4 years, the Nation's real output of goods and services—the gross national product—has grown at an average rate of about 5% per year. New highs have been achieved in employment, income, and profits. Unemployment has been reduced. Price stability has been maintained. This is a creditable record of achievement. And we look forward to continued growth in the year ahead. The Nation's output in calendar year 1965 is expected to reach $660 billion, plus or minus $5 billion. Nevertheless, we must keep in mind that our economy is still producing at a level well below its potential. Nearly 4 million people are out of work. The unemployment rate is still nearly 5%. Plants and machines are standing idle while human wants and needs go unmet. An estimated 35 million people continue to live in poverty. We cannot substitute last year's achievements for next year's goals; nor can we meet next year's challenge with last year's budget. The revenue and expenditure proposals presented in the 1966 budget are carefully designed to promote continued economic expansion and improved economic opportunities. THE BUDGET MESSAGE OF THE PRESIDENT 9 This budget takes into account the need to reduce the Nation's balance of payments deficit. During the last calendar year, the deficit showed a significant decline. To help insure continued improvement, I will intensify efforts to carry out Federal activities with the least possible burden on our balance of payments. BUDGET SUMMARY Administrative budget.—In preparing this budget, I have applied exacting tests of efficiency and necessity to all proposed expenditures. As a result, total administrative budget expenditures are being held to $99.7 billion in 1966. Although expenditures will rise by a relatively small amount, they will decline as a percent of the gross national product—to less than 15%, the lowest ratio achieved in 15 years. Administrative budget receipts are expected to increase in 1966 to $94.4 billion. This is $3.2 billion over the estimated level for 1965. This increase reflects the economic growth anticipated in calendar year 1965. It also takes into account the revenue losses from proposed excise tax changes and from the second stage of income tax cuts enacted last year. The resulting 1966 administrative budget deficit of $5.3 billion is $1 billion lower than the 1965 deficit, marking continued progress toward a balanced budget. 10 THE BUDGET FOR FISCAL YEAR 1 9 6 6 As our population increases, as science and technology change our methods of doing things, as our wants multiply with the growth in our incomes, and as urbanization creates new problems, 'there is growing need for more public and private services. I t is evident that unless defense needs should decline substantially, Government expenditures will continue to rise over the long run. At the same time, we have good reason to expect that Government expenditures in the years ahead will grow more slowly than the gross national product, so that the ratio of Federal spending to our total output will continue to decline. The expenditures proposed in this budget reflect a careful balancing of national goals against budgetary costs. The budget I now present will, in my judgment, carry out the responsibilities of the Federal Government efficiently and wisely. I t was constructed on that basis alone. My budgets for both 1965 and 1966 have provided for major increases in areas of high national priority—particularly education, health, aid to the needy, housing, and the war on poverty. Also, for these 2 consecutive years, careful pruning of less urgent programs and vigorous cost reduction efforts have, on balance, resulted in lower expenditures in other major sectors of the budget. The application of these strict policies of priority and frugality is evident in the modest growth in administrative budget expenditures. THE CHANGING FEDERAL BUDGET [Fisc BLI years. In billions] Administrative budget expenditures Description National defense and space Interest Health, labor, education, housing and community development, economic opportunity program, and aid to the needy All other Total, administrative budget 1964 actual 1966 estimate Change, 1964 to 1965 1965 estimate Change, 1965 to 1966 $58.4 10.8 -$1.3 $57.1 11.3 -$0.4 6.7 21.8 +.7 7.4 21.7 +3.6 -1.3 11.0 20.4 97.7 -.2 97.5 +2.2 99.7 +.5 +.3 $56.7 11.6 Consolidated cash statement.—The administrative budget is based on a definition of Federal spending which excludes such important Federal activities as social security and highway construction that are financed through trust funds. A more comprehensive measure of the Government's finances is the consolidated cash budget which covers all of the Government's programs. THE BUDGET MESSAGE OF THE PRESIDENT Expenditure Changes 1964-1966 Health, Labor, Education, Housing and Community Development Economic Opportunity Program, and A i d to the N e e d y ^ On the consolidated cash basis, total payments to the public are estimated at $127.4 billion in 1966. Total receipts from the public are estimated at $123.5 billion, resulting in a net excess of payments of $3.9 billion. The estimated increase of $6.0 billion in cash payments in 1966 over 1965 is mostly in trust funds which are financed by special taxes. About $9.5 billion of the nondefense payments recommended in this budget—almost 2y2 times the size of the entire cash deficit— represent an investment in physical and financial assets which will provide benefits to the Nation for many years to come. These payments are made for Federal civil public works, equipment, and loans as well as for highways, hospitals, and other State, local, and private assets. Federal sector, national income accounts.—Another measure of Federal finance which includes trust funds emphasizes the direct impact of Government fiscal activities on the economy. This measure is based on the national income accounts. Under this concept, Federal fiscal data are estimated on an accrual rather than a cash basis. Purely financial transactions—such as loans—which do not directly affect production or income are excluded. On this basis, the deficit for 1966 is estimated at $6.0 billion. 12 THE BUDGET FOR FISCAL YEAR 1966 SUMMARY OF FEDERAL RECEIPTS AND PAYMENTS [Fiscal years. In billions) Description 1964 actual 1966 estimate 1965 FEDERAL RECEIPTS Administrative budget receipts Trust fund receipts Deduct: Intragovernmental transactions.. $89.5 30.3 4.3 $91.2 30.5 4.3 $94.4 33.6 4.5 Total cash receipts from the public. 115.5 117.4 123.5 Add: Adjustment from cash to accrual basis _ __. Deduct: Receipts from loans, property sales, and other adjustments _ _ _ -.7 -.9 -1.8 .2 .5 .7 National income account receipts—Federal sector. 114.7 116.0 121.0 97.7 97.5 99.7 28.9 6.2 29.0 5.1 32.9 5.2 120.3 121.4 127.4 FEDERAL PAYMENTS Administrative budget expenditures Trust fund expenditures (including Government-sponsored enterprises) Deduct: Intragovernmental transactions and other adjustments. Total cash payments to the public. Add: Adjustment from cash to accrual basis _ Deduct: Disbursements for loans, land purchases, and other adjustments _ _ 1.8 1.7 1.1 3.6 2.1 1.5 National income account expenditures—Federal sector. _ 118.5 121.0 127.0 -8.2 -4.8 -3.9 -6.3 -4.0 -5.0 -5.3 -3.9 -6.0 EXCESS OF RECEIPTS (+) OR PAYMENTS ( - ) Administrative budget.._ Receipts from and payments to the public. National income accounts—Federal sector. Federal expenditures as measured by the national income accounts are estimated to rise by $6.0 billion in 1966. This increase—covering both purchases of goods and services and other types of payments— will provide a strong stimulus for continued economic growth. FEDERAL REVENUES The Eevenue Act of 1964 has played a major role in widening and strengthening our prosperity. At the beginning of this month, the second stage of the rate reductions provided under the Act became effective. In total, last year's tax law will decrease consumer and 13 THE BUDGET MESSAGE OF THE PRESIDENT RECEIPTS FROM THE PUBLIC [Fiscal years. In billions] Source 1964 1965 1966 Administrative budget receipts: Individual income taxes Corporation income taxes.. Excise taxes Other _ _ ___ Total administrative budget receipts $48.7 23.5 10.2 7.1 $47.0 25.6 10.7 7.9 $48.2 27.6 9.8 8.8 89.5 91.2 94.4 16.8 3.0 3.5 2.0 1.6 .5 2.8 16.7 3.0 3.6 2.2 \J .5 2.8 18.7 2.9 4.0 2.2 1.9 .5 3.5 30.3 30.5 33.6 4.3 4.3 4.5 115.5 117.4 123.5 Trust fund receipts: Employment taxes Deposits by States, unemployment insurance Excise taxes Federal employee and agency payments for retirement Interest on trust fund investments Veterans life insurance premiums. _ _ Other Total trust fund receipts Intragovernmental transactions (deduct) Total receipts from the public ____ business tax liabilities by about $14 billion in the current calendar year. With this substantial change in income taxes completed, it is now appropriate to revise and adjust excise taxes as well. Some of the present excises are costly and inefficient to administer. Some impose onerous recordkeeping burdens on small business. Some distort consumer choices as among different kinds of goods. Within the revenue requirements for continued progress toward a balanced budget, I believe it is vital that we correct the most pressing of these deficiencies this year. I plan to transmit to the Congress recommendations to repeal some excise taxes and reduce others. In addition to improving the tax system, the recommended changes will increase purchasing power and stimulate further growth in the economy. These changes should become effective July 1, 1965. They will reduce tax liabilities on a full-year basis by $1.75 billion. Revenues collected by the Treasury in 1966 will be reduced by $1.5 billion. My other major revenue proposals this year involve important activities financed through trust funds. I am recommending prompt enactment of a hospital insurance program for elderly persons, who are finding hospital and medical costs far greater than their ability to pay. This program should be 14 THE BUDGET FOR FISCAL YEAR 1966 Federal Receipts self-financing, with a combined employer-employee payroll contribution of 0.6% on the first $5,600 of income to start in calendar year 1966. I am also recommending an increase from $4,800 to $5,600 in the wage base on which social security taxes are paid. This would take effect on January 1, 1966, and would be coupled with a smaller increase in the payroll tax than is scheduled at that date under existing law. These changes will provide the funds for the needed increases being proposed in old-age, survivors, and disability insurance benefits. While I am recommending reductions in certain excise taxes, I am also proposing increases in certain other excise taxes which are in the nature of user charges. The excise taxes for which I am recommending reduction or repeal are not associated, with the provision of particular Government services. However, certain existing excises on transportation are in effect a charge for the use of facilities and services provided by the Government. In these cases, I am proposing changes in user charges for transportation so that different modes of transportation can compete on more equitable and efficient terms and users of special Government services will pay a greater share of the costs. The estimated cost of completing the Interstate Highway System— which is financed by highway user taxes—has recently been increased by $5.8 billion. To avoid serious delay in completing the system, while remaining on a pay-as-you-go basis, I will include in my excise tax proposals specific recommendations for increasing certain highway user charges. 15 THE BUDGET MESSAGE OF THE PRESIDENT In contrast to the users of the highways, the users of the airways and inland waterways bear considerably less than the full cost of the Government investments and services provided them. Accordingly, I am recommending increased or new taxes on aviation gasoline and jet fuels and a new tax on air freight for commercial aviation. Eeceipts from the existing 2-cent tax on aviation gasoline should be kept in the general fund rather than transferred to the highway trust fund, and the 5% ticket tax on air passengers should be made permanent. A fuel tax for inland waterway users is also being proposed. I will continue to press for other user charges in Government programs where benefits are provided to specific, identifiable individuals and businesses. Fairness to all taxpayers demands that those who enjoy special benefits should bear a greater share of the costs. Legislation is needed for some of the charges, such as patent and meat inspection fees. In other instances, equitable user charges will be instituted through administrative action. I will also present recommendations to correct certain abuses in the tax-exempt privileges enjoyed by private foundations. NEW OBLIGATIONAL AUTHORITY This budget includes new obligational authority for 1966 of $106.4 billion in the administrative budget. • $93.5 billion of this requires congressional action this year. • $12.9 billion represents permanent authorizations that do not require further congressional action, mainly the appropriation for interest on the public debt. Most of the $34.5 billion in new obligational authority recommended for 1966 for trust funds represents revenues from special taxes which are automatically appropriated. NEW OBLIGATIONAL AUTHORITY [Fiscal years. In billions] Description Total authorizations requiring current action by Congress: Administrative budget funds Trust funds Total authorizations not requiring current action by Congress: Administrative budget funds _ Trust funds _ Total new obligational authority: Administrative budget funds Trust funds _ _ 1964 actual 1965 estimate 1966 estimate $87.9 .4 $94.5 1.4 $93.5 .5 13.2 31.2 12.8 30.3 12.9 34.0 101.1 31.5 107.3 31.8 106.4 34.5 16 THE BUDGET FOR FISCAL YEAR 1966 The 1965 estimate in the administrative budget includes $6.0 billion of recommended supplemental authorizations. These authorizations will provide funds for several programs for which I am requesting immediate consideration and enactment—for example, housing activities and aid to Appalachia. The new obligations! authority and related expenditures under these supplemental proposals are reflected fully in the estimates presented in this budget. FEDERAL PROGRAMS AND EXPENDITURES The soundness of a budget can only be judged by the merits of the programs it proposes and the levels of expenditure it recommends. For both old and new programs, merit turns on a weighing of benefits against costs. In constructing this budget, I have tried to apply this approach to the entire range of Government operations. PAYMENTS TO THE PUBLIC [Fiscal years. In billions] Function 1964 1965 1966 Administrative budget expenditures: $54.2 3.7 (1.7) 4.2 $52.2 4.0 (1.7) 4.9 $51.6 4.0 5.6 2.5 3.0 -.1 5.5 1.3 5.5 10.8 2.3 3.9 2.7 2.8 * 8.3 2.7 4.6 11.6 2.5 .7 4.5 2.7 3.4 -.3 6.2 1.5 5.4 11.3 2.4 * .1 .8 97.7 97.5 99.7 Health, labor, and welfare Commerce and transportation National defense Housing and community development. Veterans benefits and services All other Interfund transactions (deduct) 22.7 3.5 .5 1.9 .7 .1 .5 23.4 3.9 .8 .2 .6 .6 .6 26.5 3.7 Total trust fund expenditures 28.9 29.0 32.9 6.2 5.1 5.2 120.3 121.4 127.4 National defense . International affairs and finance * Of which Food for Peace Space research and technology Agriculture and agricultural resources (not including Food for Peace)i _, Natural resources Commerce and transportation Housing and community development Health, labor, and welfare Education Veterans benefits and services I nterest . General government Allowance for Appalachia Allowance for contingencies Interfund transactions (deduct) Total administrative budget expenditures. .1 .4 .6 Trust fund expenditures: Intragovernmental transactions and other adjustments (deduct). Total payments to the public "Less than $50 million. 1 See General Notes, page 4, item 4. 1.0 .8 .5 1.0 .6 THE BUDGET MESSAGE OF THE PRESIDENT 17 As the year unfolds, developments may occur which call for prompt action by the Government. This is particularly true in international affairs, in the civil supersonic aircraft program, and in moving ahead with the recommendations resulting from various studies and analyses I am requesting, such as that related to military and civilian pay. Specific legislation and appropriations to meet such contingencies will be proposed as needed, but the amounts which may be required cannot now be estimated with any confidence. The budget therefore includes an allowance for contingencies of $650 million in new obligational authority and $400 million in expenditures. These amounts are larger than is customary. Their inclusion makes it clear that the budget totals are intended to provide adequately for meeting new needs that may arise or seizing new opportunities that may be presented. Here are the highlights of my expenditure recommendations: National defense.—We cannot afford second-best defense forces. Neither can we afford to be wasteful. Our defense forces have reached new levels of strength. With the rapid strides made in the past 4 years and the future gains already scheduled, our powerful modern forces will be adequate to their tasks for years to come. In cooperation with our allies, we have now provided for: • Forces able to deter nuclear attack. • Forces able to counter conventional aggression and prevent the piecemeal erosion of the free world. • Forces, in short, able to promote peace. We still have improvements to make. We must maintain a strong research and development program to insure that our forces are always the most modern in the world. The 1966 budget fully provides for these needs. However, we are able to reduce our defense expenditures in 1966 because: • The buildup of our forces which started in 1961 is nearly complete. • The vigorous cost reduction program of the Department of Defense is producing large savings. • Less effective and less economical forces are being retired or reduced as promptly as possible. International affairs and finance.—We cannot achieve lasting world peace with armaments alone. Nor can greater worldwide prosperity be bought with money alone. These goals will be achieved only through the hard work, patience, understanding, and strength of men of good will everywhere. 750-000 O—65 2 18 THE BUDGET FOR FISCAL YEAR 19 66 Yet it is essential that we continue to put our best energies and some of our vast economic resources to work in solving the problems the world faces today. Prudent and careful expenditures for our international programs can help to keep men free, to promote understanding, and to substitute cooperation and negotiation for force in world affairs. The 1966 budget calls for only a very modest increase in foreign economic assistance expenditures. With these funds, we will continue to concentrate our aid efforts in those less developed countries that are demonstrating the will and determination required to achieve political stability and economic growth. We shall maintain our firm commitment to the Alliance for Progress—the focus of our efforts to achieve unity and understanding in this hemisphere. As an important part of this commitment, I recommend prompt action to permit our participation in the expansion of the Inter-American Development Bank. This budget also enables us to: • Continue our participation in and support for the United Nations. • Maintain an adequate and alert network of diplomatic posts around the world. • Improve our overseas information activities, so that others may know us not just as a rich nation, but as a free and responsible nation as well. • Expand the Peace Corps, by now a proven experiment in international cooperation. In an important step to strengthen the free world's financial system, the members of the International Monetary Fund are considering an increase in quotas. Upon completion of these discussions, expected shortly, I shall recommend that the Congress authorize promptly the funds needed to provide the U.S. share of this increase. Space research and technology.—This Nation has embarked on a bold program of space exploration and research which holds promise of rich rewards in many fields of American life. Our boldness is clearly indicated by the broad scope of our program and by our intent to send men to the moon within this decade. The costs are high—as we knew they would be when we launched this effort. We have seen a rise in annual expenditures for the space program from less than one-half billion dollars in 1960 to over $4 billion in 1964. THE BUDGET MESSAGE OF THE PRESIDENT $955 1956 1957 1958 1959 I960 19 1961 1962 1963 1964 1965 1966 Expenditures are continuing to increase. However, we have built up momentum and are concentrating on our highest priority goals. Therefore, we will no longer need to increase space outlays by huge sums each year in order to meet our present objectives. This budget proposes that expenditures increase by $200 million in 1966 over 1965. This is the smallest annual increase since 1959. The new obligational authority requested is about the same as enacted for 1965. Agriculture and agricultural resources.—The increased productive efficiency of our farms has contributed greatly to growth of the national economy. This efficiency, in turn, has contributed, along with our high per capita income, to making us the best-fed nation in the world, while men are leaving farms and entering other occupations. However, because of lack of adequate employment opportunities, the rapidly declining need for people to operate our farms has also meant low incomes for all too many of our rural families. We must therefore find ways to help provide a greater share of our national prosperity for those rural families that do not farm or who can no longer look to farming as a sole source of income. Progress toward this goal will be made both through broader programs to fight poverty and through programs specially aimed at increasing economic opportunities and improving living conditions for rural people. The latter include a proposal for an insured loan program which will help provide more and better housing in rural areas. 20 THE BUDGET FOR FISCAL YEAR 1966 I shall shortly transmit to the Congress my recommendations to continue and improve our farm commodity programs. For the longer run, we need to explore new approaches to the problems with which the farm commodity programs are designed to deal. I have directed the Secretary of Agriculture to make a comprehensive review of the kinds of programs needed for the changing farm economy. I strongly believe that programs can be designed that will continue the national benefit from our present highly efficient commercial agriculture, bolster farm income, put less burden on the Federal budget, and direct more of our effort to the problems of lowincome farmers. Natural resources.—During its last session, the Congress passed a number of far-reaching laws that will advance significantly the development, conservation, and use of our natural resources. They include the Land and Water Conservation Fund Act, the Wilderness Act, and the Water Resources Research Act. The 1966 budget will implement these measures. The budget also recommends the start of 37 new projects by the Corps of Engineers, 9 new projects by the Bureau of Reclamation, and 5 new projects by the Tennessee Valley Authority. About two-thirds of the total expenditures for natural resources will be used to continue construction and operation of projects to provide water, control floods, improve navigation, and generate power. Increased attention has been focused in recent years on the importance of the wise use and conservation of our water resources. Federal investment in water and related resources development has grown sharply—and is expected to grow further in the period ahead. Urban, industrial, and recreational requirements for water have increased greatly in recent years and will continue to increase as our economy grows. The relative priorities of many historic water uses, including cropland, are changing. The implications of the changing needs for water resources programs and the most effective means of achieving our objectives are under intensified review to meet changing priorities. The budget provides for a major expansion in research to develop improved technology for desalting water, including the use of nuclear energy. This program holds important promise in a world where water is a key to economic development and well-being. I am also again recommending legislation to authorize river basin planning commissions and grants to States for planning the best use of water resources. Nuclear energy will become increasingly important in meeting the rapidly growing demand for electric power. Power reactors must be improved, however, to make better use of nuclear fuel resources than THE BUDGET MESSAGE OF THE PRESIDENT 21 they do today, as well as to provide economical electricity. In 1966, the Atomic Energy Commission plans to join with non-Federal groups in the construction of two different advanced power reactors which incorporate substantial improvements over those now in use. The Commission is also working toward the long-range objective of high-gain breeder reactors which produce significantly more fuel than they consume. These breeders would insure a tremendous energy source for centuries to come. Commerce and transportation.—The vitality of the millions of privately owned businesses is essential to our continued economic development. The Federal Government will continue to provide extensive encouragement toward this end. In the depressed areas of our Nation, we must create a constructive partnership between industry and government which will improve opportunities for new investment and new jobs. I urge prompt congressional action to: • Extend the program begun by the Area Redevelopment Act of 1961, now scheduled to expire on June 30,1965. • Amend the act so that Federal aids can be concentrated in areas of greatest need and can emphasize the most effective types of assistance. If the Nation is to have a truly efficient system of transportation, we must revise the traditional Government programs of regulation and operating subsidies to place greater reliance upon the forces of free competition. My proposals for charging users of Government transportation services a greater share of the costs incurred on their behalf are consistent with this objective. In addition, my proposals for transportation will provide for greater emphasis on the recreational and scenic aspects of our road system. To encourage long-overdue improvements in surface transportation in our densely populated regions, I will propose legislation to authorize a comprehensive program of technical research and development on high-speed, intercity surface transport. As a first step, we will begin demonstrations of possible improvements in existing rail passenger services in the Northeast Corridor of the Nation. By increasing efficiency and productivity, the Post Office Department has been able to avoid a general increase in postal rates since calendar year 1962. Despite these efforts, however, significant postal deficits are now estimated in the current and future years. At my request, a panel of distinguished citizens will consider whether certain postal rates should be increased to bring them into line with postal costs. 22 THE BUDGET FOR FISCAL YEAR 1066 Housing and community development.—The Federal Government's role in the Nation's huge annual investment in housing and community development is largely indirect. The Government insures savings and loan accounts and mortgages, encouraging private investment and making large direct Federal investments unnecessary. Today these insurance programs are involved in about half of the homes purchased or being built. Yet, some direct Federal aid is, and will remain, necessary. This type of aid gives incentives to forward-looking communities, lenders and builders, and private citizens, who share the national concern over the unsatisfactory state of American cities. In a message on housing and urban development, I will present my proposals for further extension of the Federal-local-private partnership in meeting city problems. Revitalized Federal leadership through a new Department of Housing and Urban Development will be coupled with increased emphasis on comprehensive local planning. Federal financial assistance will be offered to: • Support the neighborhood facilities needed to serve the city's people. • Increase the supply of low and moderate income housing. • Continue the attack on urban blight. • Encourage better standards of development and more adequate public facilities at the growing urban fringe. No recent step in improving the prospects for future urban development has been more significant than the enactment of the Urban Mass Transportation Act of 1964. To extend similar opportunities to the local communities of the National Capital region, I urge authorization of the special Federal assistance required to provide the nucleus of an adequate system of high-speed urban transportation for this area. Health, labor, and welfare.—The Economic Opportunity Act of 1964 rededicated the Nation to a vigorous attack on the causes of the poverty which grips one-fifth of our population—including 15 million children. Our objective is to mobilize local, State, and Federal resources in a coordinated effort to assist the poor—especially children and youth—to achieve a better life. The 1966 budget provides for almost doubling the new obligational authority and quadrupling the expenditures for this effort. These funds will: • Support 300 urban and rural community action programs. THE BUDGET MESSAGE OF THE PRESIDENT 23 • Provide work opportunities, remedial education, and vocational training for 330,000 youths in the Job Corps and the Neighborhood Youth Corps. • Provide work-study opportunities for 100,000 needy college students and work experience for 110,000 unemployed adults. • Support the Volunteers in Service to America (VISTA); finance literacy training for adults; and assist migrant workers, farmers, and other low-income rural families. To improve health care and facilities for the American people, the 1966 budget includes new proposals for: • Hospital insurance for the aged under social security. • Multipurpose regional medical centers to provide the most advanced diagnosis and treatment for heart disease, cancer, stroke, and other major diseases. • Grants for operating expenses of medical and dental schools. • Initial staffing of community mental health centers. • Improved medical diagnostic and treatment services for preschool and school age children and youth. • Grants for projects to reduce water pollution caused by combined storm and sanitary sewers. • Increased aid to State and local air and water pollution control agencies for research and for more vigorous enforcement. Our social security system provides needed day-in and day-out support to the millions who have contributed to it during their working years. This system needs strengthening. In addition to hospital insurance for the aged, I am proposing legislation to provide ail average 7% increase in social security benefits, retroactive to January 1, 1965. The increase in benefit payments will amount to about $2 billion in 1966. I am proposing legislation to authorize long overdue improvements in the unemployment insurance system. Improvements are also needed in our public assistance and manpower training programs. Legislation will be recommended to increase the Federal share of public assistance payments, establish a program of medical care for children in families unable to afford such care, and authorize payments for needy aged persons in mental and tuberculosis hospitals. Recommendations will also be made to broaden the Manpower Development and Training Act and increase the Federal share of project costs to 90% from the 66% which would go into effect under present law in 1966. 24 THE BUDGET FOR FISCAL YEAR 1966 Education.—Among the unfinished tasks of our Nation, the improvement of education deserves first priority. It is our primary weapon in the war on poverty and the principal tool for building a Great Society. This budget recognizes the increasing Federal responsibility to expand educational opportunity for all people and at all levels. I t provides an increase in 1966 of over 60% in new obligational authority and over 75% in outlays. The programs of the Office of Education alone are more than doubled in 1966. EDUCATION PROGRAMS IN THE 1966 BUDGET [Fiscal years. Agency or program In millions New obligational a uthority 1964 Office of Education: Elementary/secondary Higher _ Vocational and other. Subtotal, Office of Education National Science Foundation Other education programs Total, education Present programs _ Proposed legislation 1965 1964 1965 1966 $1,765 1,167 $404 150 $408 182 $971 496 449 106 186 326 1,500 420 599 3,381 530 192 660 310 369 776 325 408 1,792 405 466 2,519 (2,519) 4,103 (2,588) (1,515) $407 164 $488 668 130 345 702 353 475 1,530 (1,530) 1966 Expenditures 1,339 (1,339) 1,509 2,663 (1,509) (2,063) (600) The 88th Congress enacted more education legislation than any previous Congress. About 30% of the estimated increase in expenditures for education in 1966 is to carry out the Higher Education Facilities Act of 1963, the Vocational Education Act of 1963, the Library Services and Construction Act of 1964, and the National Defense Education Act Amendments of 1964. But much remains to be done. Federal aid to meet critical needs in elementary and secondary education has not been enacted. Such aid is vital if we are to end the situation in which children are handicapped for life because they happen to live in communities which cannot support good schools. The program I am proposing emphasizes assistance to improve elementary and secondary education, particularly for children who live in poverty. It will step up research in education and help schools and communities to provide wider educational opportunities for all. It will also strengthen higher education by expanding assistance to THE BUDGET MESSAGE OF THE PRESIDENT 25 colleges and to college students. My proposals were presented more fully in a special message on education. I also propose to expand present programs of support for academic reiSearch and science education. In 1966, expenditures by the National Science Foundation will increase by 25%, primarily to help provide an adequate rate of growth in Federal support for basic research in universities. Consistent with these objectives, I recommend that the Congress remove its restrictions on payments to universities for indirect costs of research grants. Veterans benefits and services.—Veterans benefits and services under the basic, continuing compensation, pension, and medical care programs will be at record levels in 1966. • Nearly 4% million veterans or their survivors will receive compensation and pension payments. • 690,000 veterans will be admitted to hospitals, domiciliary homes, or nursing homes. Legislation enacted in 1964 by the 88th Congress to increase pension rates and to establish new nursing home programs will entail expenditures in 1966 of more than $100 million. In line with the trend of recent years, an increasing part of the expenditures for veterans will be for non-service-connected benefits and services. As we continue to improve our social security and health protection programs, we should place greater reliance on these programs for meeting veterans needs not connected with their military service. Our major emphasis in veterans programs should be concentrated on meeting fully our obligation to those who were disabled in the defense of the country and to their dependents and survivors. The Appalachian region.—The Appalachian region of the United States has not shared fully in the great growth and prosperity enjoyed by the Nation as a whole. The 16 million people of this 165,000square-mile area deserve a better opportunity to improve their region. Many of the education, health, housing, and economic opportunity programs already outlined in the budget will help to overcome the problems brought on by chronic poverty. We need to make the most effective use of these programs. But a special effort is required to help this region. This means that Federal, State, local, and private institutions must combine to: • Improve access to the region. • Develop its natural resources. • Promote better employment opportunities for its people. I urge the enactment of legislation to make this possible. 26 THE BUDGET FOR FISCAL YEAR 1966 Employee pay*—In preparing this budget, I have given close attention to the matter of Government pay. Federal pay raises in the past 3 years have moved us much nearer to realizing the principle that civilian pay rates should be comparable to those in private enterprise for the same levels of work and that changes in pay and allowances of members of the uniformed forces should keep pace with advances in the general economy. These policies have been firmly established after careful congressional review. Taken together, they assure that civilian and military pay are effectively interrelated and maintained at rates which are fair to taxpayers and to Federal employees. I believe, however, that it is equally essential to assure that any proposals for further pay adjustments during this calendar year accurately reflect pay developments in the private economy and be compatible with our national wage and price objectives. For these reasons, I am appointing a special panel to make a prompt review of the present situation. This panel will be composed equally of distinguished public members and officers of the executive branch. It will report to me on April 1, 1965, after which I will make a recommendation to the Congress. Provision has been made in the allowance for contingencies for a possible military and civilian pay increase. PUBLIC DEBT Changes in the amount of public debt from year to year reflect primarily the amount of the budget surplus or deficit. Based on the estimates presented in this budget, the debt on June 30, 1965, will be $316.9 billion and on June 30,1966, $322.5 billion. PUBLIC DEBT AT END OF YEAR [Fiscal years. Description Owned by Federal agencies and trust funds. Owned privately and by Federal Reserve banks _„ Total In billions] 1963 actual 1964 actual 1965 estimate 1966 estimate $57.9 $60.7 $62.5 $64.4 248.6 251.8 254.4 258.1 306.5 312.5 316.9 322.5 Note.—For further details see table 11 in part 2 of this document. Under present law, the temporary debt limit of $324 billion will continue in effect through June 30,1965. Then—if no action is taken— the permanent legislative ceiling of $285 billion will again become THE BUDGET MESSAGE OF THE PRESIDENT 27 effective. It will be necessary, therefore, to raise the legal debt ceiling before that date. The size of the debt limit needed is strongly affected by the seasonal pattern of Federal receipts and expenditures. Since receipts are always larger in the last half of the fiscal year, the public debt during 1966 will, from time to time, exceed the level presently estimated for June 30,1966. These seasonal fluctuations will require a higher debt limit than would be necessary if we had only to consider the amount of debt at the end of the fiscal year. The need for flexibility in managing the debt must also be considered in fixing the debt limit. The Treasury generally borrows relatively large amounts of cash at periodic intervals during the year. These sizable financing operations are—and should be—carefully timed to take full advantage of favorable market conditions when they exist. REDUCING GOVERNMENT COSTS As we focus attention on improving the quality of American life, we must also see to the quality of American Government. The tasks we face are formidable. They require new dedication, new vision, and new skills. We have neither the resources nor the right to saddle our people with unproductive and inefficient Government organization, services, or practices. 28 THE BUDGET FOR FISCAL YEAR 1966 This must be a year of renewal—a year that will be long remembered for what we accomplish in bringing the public service to its highest state of readiness. To realize this renewal, action will be necessary on a wide front. I pledge that this administration will strive to conduct the work of the Government by the same exacting standards that would apply in the most expertly managed private business. Government organization,—We must reorganize and modernize the structure of the executive branch in order to focus responsibilities and increase efficiency. I will shortly propose certain reorganizations which will constitute the initial and most urgent steps that I deem necessary to consolidate functions and strengthen coordination of related activities. I will ask that permanent reorganization authority be granted to the President to initiate improvements in Government organization, subject to the disapproval of the Congress. Controlling employment.—In this budget, as in the budget for 1965, I have insisted upon stringent criteria to control the growth of Federal civilian employment. It is important that we have enough people to carry on the Government's business efficiently, but we must also see that we have no more employees than we need. Realistic guidelines and goals have been established to aid administrators in the effective management of the Government's large and diverse work force. Controls on employment have been established for each agency. To remove the guesswork from determination of employment needs, agencies are installing improved work measurement systems, and the Bureau of the Budget is providing advice and assistance in introducing measures of productivity into agency management systems. The result of such efforts has been and will continue to be a reduction in the size of the Federal work force relative to the work being accomplished. The effectiveness of these controls may be seen in the fact that had Federal civilian employment kept its 1955 relationship to total population, Federal employees would have totaled 2,747,000 on June 30,1964, more than 275,000 above the actual number as of that date. Modest and highly selective increases in employment are proposed in the budget for 1966, mainly to carry out new and expanded programs recommended in this budget and to reduce excessive overtime in the Post Office Department. At the same time, we will take full advantage of every opportunity to keep the work force at minimum levels by eliminating functions, consolidating operations, closing unnecessary offices and installations, and abolishing vacancies. Total employment Total, Federal Government, State and Local Government lian employment proposed for 1966 is about 1% above the totals for current year, and I am confident that we will be able to keep actual )loyment somewhat below these estimates. r anagement improvement and cost reduction.—The past year has i a successful one from the standpoint of improved management cost reduction. Next year will be still better. ed by the outstanding performance of the Department of Defense, 'eminent agencies last year undertook cost reductions that saved ost $3.5 billion. These economies were not easy to come by. They e resulted from the concentrated work of Government officials and )loyees in all agencies, large and small. They reflect a wide variety ctions ranging from the abolition of reports and other publications he introduction of computers, the application of modern business ipment, the adoption of new purchasing methods, and decisions to e major installations. am counting heavily on the continuation and acceleration of cost notion and management improvement efforts. Every dollar saved his way can be put to better use in carrying on more urgent busi5. And today every dollar is important. Among other things, nust: Continue our war on excessive paperwork. Increase our capacity to find and correct management weaknesses iroughout the Government. 30 THE BUDGET FOR FISCAL YEAR 1966 • Reexamine our career services, making certain that they are all they should be with respect to selection, training, placement, promotion, rotation, retirement, and removal. • Seek legislation that will remove legal barriers to efficient operation. I have instructed the Director of the Bureau of the Budget to give direction to a comprehensive, Government-wide cost reduction program to be put into effect in every department and agency. In general, this program will require the head of each agency to: • Take personal charge of cost reduction efforts. • Set specific goals for reductions in cost. • Reassess priorities for all programs and operations. • Identify and remove roadblocks to economy. • Verify reported savings. I believe the Congress and the American people approve my goals of economy and efficiency. I believe they are as opposed to waste as I am. We can and will eliminate it. CONCLUSION Since I sent you my first budget a year ago: • 4 million Americans have been born. • 3.2 million young people have reached college age. • 1.7 million new families have been formed. • 1.3 million persons have entered the labor force. • 1.5 million persons have reached retirement age. Thus, our Nation faces growing responsibilities. But we also possess growing resources to meet them. One result of our expanding economy is a larger revenue potential. This means a potential for: • Necessary increases in Federal expenditures. • Reductions in taxes. • Reductions in the public debt. No one of these goals is paramount at all times. Each must be balanced against the others to assure our continued progress toward a Great Society. THE BUDGET MESSAGE OF THE PRESIDENT 31 This progress does not rest on economic growth alone. It is aimed at improving the quality of our way of life. And it is aimed at insuring that all Americans share in this way of life. The Federal Government must do its part. This does not mean simply spending more. It does mean spending more on some new and vital activities. But it also means cutting back or eliminating activities which are less urgent or no longer necessary. Where there is waste, to end it; where there are needs, to meet them; where there are just hopes, to move toward their fullfillment— that is the object of the budget which I now submit to your consideration. LYNDON B. JOHNSON. January 25, 1965. PART 2 SUMMARY TABLES 33 750-000 0—65 3 Social Security and Other Trust Funds 26* 34 35 SUMMARY TABLES Table 1. BUDGET RESUME (in billions of dollars) ADMINISTRATIVE BUDGET AND TRUST FUND RECEIPTS AND EXPENDITURES ADMINISTRATIVE BUDGET FUNDS Description 1964 1965 1966 TRUST FUNDS 1964 1965 1966 estimate RECEIPTS Individual income taxes Corporation income taxes Employment taxes Excise taxes _ Unemployment tax deposits by States Other receipts Interfund transactions. _ __ _ Total receipts ______ 48.7 23.5 47.0 25.6 48.2 27.6 10.2 10.7 9.8 7.7 -.7 8.7 -.8 89.5 9.4 -.6 16.8 3.5 3.0 7.5 -.5 16.7 3.6 3.0 7.8 -.6 18.7 4.0 2.9 8.6 -.6 91.2 94.4 30.3 30.5 33.6 '54.2 3.7 (1.7) 4.2 52.2 4.0 (1.7) 4.9 51.6 4.0 .5 .1 .8 -.1 1.0 .3 '!:?» * * * 5.6 2.5 3.0 -.1 5.5 4.5 2.7 3.4 -.3 6.2 3.9 2.7 2.8 * 8.3 .5 .1 3.5 1.9 22.7 .6 .1 3.9 .2 23.4 * .7 * .6 .5 .2 3.7 .8 26.5 * -.6 * * EXPENDITURES National defense __ _ International affairs and finance * Of which Food for Peace Space research and technology Agriculture and agricultural resources (not including Food for Peace)1 Natural resources Commerce and transportation Housing and community development Health, labor, and welfare Education Veterans benefits and services Interest.- _ _ _ General government _ Deposit funds (net) Allowance for Appalachia Allowance for contingencies ___ Interfund transactions Total expenditures __ __ Excess of receipts ( + ) or expenditures (—). * .5 1.3 1.5 5.5 10.8 5.4 11.3 4.6 11.6 2.3 2.4 2.5 -.7 .1 .4 -.6 99.7 -.5 -.6 -.6 97.7 * .1 -.8 97.5 28.9 29.0 32.9 -8.2 -6.3 -5.3 +1.4 +1.5 +.7 1964 1965 89.5 30.3 -4.3 91.2 30.5 -4.3 94.4 33.6 -4.5 115.5 117.4 123.5 97.7 28.9 -6.2 97.5 29.0 -5.1 99.7 32.9 -5.2 120.3 121.4 127.4 -4.8 -4.0 -3.9 2.7 * * CONSOLIDATED SUMMARY Description 1966 stimate Cash receipts: Administrative budget receipts Trust fund receipts Intragovernmental transactions Total receipts from the public Cash expenditures: Administrative budget expenditures Trust expenditures Intragovernmental and other noncash transactions Total payments to the public Excess of receipts from ( + ) or payments to (—) the public Note.—For explanation of administrative budget funds and trust funds, see page 154. For details on receipts, see table 13 on pages 56 to 61. For details on expenditures, see table 14 on pages 138 to 151; for further detail, by agency and account, see pages 158 to 353. *Less than $50 million. 1 See general notes, page 4, paragraph 4. 36 THE BUDGET FOR FISCAL YEAR 1966 Table 2. RECEIPTS FROM AND PAYMENTS TO THE PUBLIC (CONSOLIDATED CASH BASIS) (in billions of dollars) Description 1964 actual 1965 estimate 1966 estimate RECEIPTS FROM THE PUBLIC Individual income taxes Corporation income taxes Employment taxes __ Excise taxes Unemployment tax deposits by States. Estate and gift taxes Customs Veterans life insurance premiums Other receipts Total receipts from the public 48.7 23.5 16.8 13.7 3.0 2.4 1.3 .5 5.6 47.0 25.6 16.7 14.4 3.0 2.8 1.4 .5 6.1 48.2 27.6 18.7 13.7 2.9 3.2 1.5 .5 7A 115.5 117.4 123.5 PAYMENTS TO THE PUBLIC National defense International affairs and finance 1 Of which Food for Peace Space research and technology Agriculture and agricultural resources (not including Food for Peace) * Natural resources Commerce and transportation Housing and community development Health, labor, and welfare Education Veterans benefits and services Interest General government Deposit funds, net Allowance for Appalachia Allowance for contingencies Other undistributed adjustments: Agency payments for employee retirement Dedu:tion from employees' salaries for retirement Increase (—) or decrease in outstanding checks, etc Total payments to the public Excess of receipts from ( + ) or payments to (—) the public 54.5 3.5 52.8 3.6 (1.7) 4.9 52.5 4.2 (1.7) 5.1 4.6 2.8 7.4 -.2 28.9 1.5 6.0 8.5 2.4 * * .1 4.1 2.9 6.5 .7 34.1 2.6 5.1 8.8 2.4 * -.9 -1.0 -1.0 .2 -1.0 -1.0 * 120.3 121.4 127.4 -4.8 -4.0 -3.9 (1.7) 4.2 5.8 2.6 6.5 1.7 27.3 1.3 6.1 8.0 2.2 -.6 -1.0 -1.0 .1 .4 Note.— This table shows the flow of money between the Government and the public on a cash (collections and checks paid) basis. For fuller explanation, see special analysis A (pages 356 to 365). •Less than $50 million. 1 See general notes, page 4, paragraph 4. 37 SUMMARY TABLES Table 3. NEW OBLIGATIONAL AUTHORITY BY TYPE AND FUNCTION (in billions of dollars) Description ADMINISTRATIVE BUDGET FUNDS 1964 1965 TRUST FUNDS 1966 1964 1965 1966 TYPE Authorizations requiring current action by Congress: Appropriations 2 Reappropriations Authorizations to spend debt receipts Contract authorizations 87.1 * .5 .2 91.7 * .9 1.9 93.4 Total authorizations requiring current action by Congress. 87.9 94.5 93.5 .4 1.4 .5 Authorizations not requiring current action by Congress (permanent): Appropriations2 _ __ Authorizations to spend debt receipts Contract authorizations 11.6 .7 1.0 12.0 .5 .3 12.3 .1 .5 29.9 .1 1.1 29.2 .1 1.0 32.7 .2 1.1 Total authorizations not requiring current action by Congress (permanent) 13.2 12.8 12.9 31.2 30.3 34.0 101.1 107.3 106.4 31.5 31.8 34.5 53.8 4.5 (1.7) 5.1 52.4 6.8 (2.4) 5.2 51.1 5.1 1.2 .1 1.1 * 1.1 .1 * * * * .2 3.7 .4 25.2 * .7 * .2 3.8 .5 25.4 * .7 * .2 4.0 .6 27.7 * .7 * * * 31.5 31.8 34.5 Total new obligational authority 0.4 * .1 0.4 0.5 1.0 FUNCTION National defense __ International affairs and finance 1 Of which Food for Peace Space research and technology Agriculture and agricultural resources (not including Food for Peace) 1 Natural resources _ _ _ _ _ . _ _ _ _ Commerce and transportation. Housing and community development Health, labor, and welfare Education Veterans benefits and services Interest General government Allowance for Appalachia Allowance for contingencies Total new obligational authority 5.7 2.5 3.0 .7 5.7 1.5 5.6 10.8 2.3 101.1 S:? 5.0 2.8 3.0 2.1 7.4 2.5 5.8 11.3 2.5 .4 .1 4.2 2.9 3.4 .8 9.0 4.1 5.7 11.6 2.5 107.3 106.4 .6 Note.— New obligational authority is the amount becoming available by act of Congress for the incurring of obligations which will result in expenditures. The various types of new obligational authority are explained on pages 154 and 155. For detailed information on new obligational authority by agency and account see pages 158 to 353. *Less 1Less than $50 million. See general notes, page 4, paragraph 4. 2S 2 Excludes appropriations to liquidate contract authorizations: E Administrative budget funds, 1964. $0.8 billion; 1965, $1.2 billion; 1966. $1.1 billion. Trust funds, 1964, $4.0 billion; 1965, $4.6 billion; 1966. $4.9 billion. 38 THE BUDGET FOR FISCAL YEAR 1966 Table 4. NEW OBLIGATIONAL AUTHORITY BY AGENCY (in millions of dollars) 1965 estimate Description 1964 enacted 1966 estimate Enacted Supplemental needed 156 67 25 160 70 25 12 7 1 172 76 26 225 90 29 3,329 8,052 779 4,432 6,262 736 1,287 1,793 13 5,719 8,055 750 5,343 6,936 679 250 -313 420 5,593 6,622 1,099 49,922 48,433 1,150 1,285 230 48,663 47,395 6 1,291 1,350 30 47,395 1,380 5,697 6,685 1,190 1,267 344 365 417 566 552 719 354 389 11,957 12,596 2,743 2,625 717 813 598 631 414 7,098 7,790 37 1,304 1,415 382 17 374 692 589 125 756 204 765 7 396 407 25 12,621 12,957 2,625 2,481 730 729 13 14 611 627 Total Transmitted herein Later transmittal Total ADMINISTRATIVE BUDGET FUNDS 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 the Interior Department of Justice Department of Labor Post Office Department Department of State Treasury Department Atomic Energy Commission Federal Aviation Agency General Services AdministrationHousing and Home Finance Agency National Aeronautics and Space Administration Veterans Administration Other independent agencies District of Columbia Allowance for Appalachia Allowance for contingencies Total administrative budget 858 1,430 5,100 5.576 1,131 93 5,250 5,585 1,180 76 101,103 101,284 966 2,396 562 164 125 2 365 150 5,250 5,750 1,305 78 365 150 5,260 5,683 1,443 83 5,978 107,262 103,211 225 90 29 1,990 -91 9,780 1,324 374 140 729 92 858 407 12,957 2,481 729 627 150 712 -127 15 5,260 5,683 1,316 99 650 650 3,205 106,417 TRUST FUNDS Department of Commerce Department of Health, Education, and Welfare Department of Labor Veterans Administration Civil Service Commission Railroad Retirement Board Other agencies Total trust funds _ 3,976 3,976 17,256 17,412 4,292 4,010 713 714 2,456 2,660 1,208 1,291 1,874 1,805 17,412 19,086 4,0)0 3,982 714 714 2,660 2,737 1,291 1,384 1,805 2,094 522 19,608 3,982 714 2,737 1,387 2,107 31,533 31,757 31,757 33,973 539 34,512 3,734 3,865 3,865 N o t e . — For explanation of the columnar headings for 1965 and 1966, see pages 156 and 157. For detailed information on new obligational authority by agency and account, see pages 158 t o 353. 39 SUMMARY TABLES Table 5. EXPENDITURES BY AGENCY (in millions of dollars) 1965 estimate 1964 actual Description 1966 estimate Supplemental needled 167 70 25 12 6 1 179 76 26 193 88 29 * * * 193 89 29 4,174 6,975 757 258 -117 6 4,432 6,858 764 4,839 6,570 753 30 -212 57 4,869 6,357 810 47,875 1,265 225 4 48,100 1,269 47,894 1,313 6 24 47,900 1,337 5,356 1,198 352 463 521 382 12,527 2,700 769 607 414 27 16 32 197 6 24 6,800 1,288 376 473 690 414 12,861 2,530 749 609 976 -114 1 91 24 1 1 12 9 5,770 1,225 367 495 718 388 12,551 2,700 781 616 1 4 7,776 1,174 377 565 714 416 12,862 2,530 750 612 133 43 176 425 29 454 162 18 2 3 100 4,900 5,376 368 76 3 100 5,100 4,798 467 94 -149 -354 9 107 400 5,100 4,649 113 103 107 400 98,314 -833 99,354 Total Transmitted herein Later transmittal Enacted Total ADMINISTRATIVE BUDGET FUNDS Legislative branch 152 The Judiciary. 66 Executive Office of the President23 Funds appropriated to the President 4,119 Department of Agriculture 7,897 686 Department of Commerce Department of Defense—Military 49,760 Department of Defense—Civil. _. 1,153 Department of Health, Education, and Welfare 5,498 1,124 Department of the Interior Department of Justice 328 370 Department of Labor 578 Post Office Department Department of State 347 Treasury Department 11,947 Atomic Energy Commission 2,765 Federal Aviation Agency 751 592 General Services Administration. Housing and Home Finance Agency 328 National Aeronautics and Space 4,171 Administration 5,478 Veterans Administration 159 Other independent agencies 57 District of Columbia Allowance for Appalachia Allowance for contingencies. Subtotal Interfund transactions. 98,348 -664 Total administrative budget 4,900 5,214 350 74 96,854 1,460 933 100,287 -600 97,481 97.684 99,687 TRUST FUNDS Department of Commerce Department of Health, Education, and Welfare Department of Labor Veterans Administration Civil Service Commission Railroad Retirement Board Other agencies 3,670 3,887 16,626 3,707 659 1,254 1,139 2,351 17,485 3,336 634 1,372 1,185 1,476 Subtotal Interfund transactions. 29,406 -521 29,374 Total trust funds 28,885 250 250 3,913 4,137 3,913 17,485 3,336 634 1,372 1,185 1,476 18,365 3,345 507 1,548 1,206 2,531 2,033 29,624 -579 31,415 2,082 29,045 42 7 20,398 3,345 507 1,548 1,248 2,538 33,497 -599 32,898 Note.—For explanation of the columnar headings for 1965 and 1966, see pages 1156 and 157. For letailed information on expenditures by agency and account, see pages 158 to 353. "Less than one-half million dollars. *¥ _ «_ 1 ^ 1 It _ Ml* 1 11 40 THE BUDGET FOR FISCAL YEAR 1966 Table 6. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars) Description 1964 1966 1965 ADMINISTRATIVE BUDGET FUNDS Additions to Federal assets: Civil: Loans __ Investments.. Public works—sites and direct construction Other _ National defense ___ 94 386 347 318 98 2.626 -46 17.617 2.888 83 15,621 2,887 -180 15,172 22,339 19,325 18,296 1,550 1,554 1,713 22 22 18 1,572 1,576 1,730 5,083 1,715 5,844 2,279 6,389 4,005 8,665 16 8,073 18 15,479 8,378 16 16,518 18.484 31,098 27,861 58,959 32,669 28,123 60,792 32.971 28.298 61.269 -664 3 100 -833 107 400 -600 97,684 97,481 99.687 148 332 65 * 59 1 2,047 Total, additions to Federal assets Additions to State, local, and private assets: Civil National defense.__ __ ___ __ Total, additions to State, local, and private assets Expenditures for other developmental purposes: Civil: Research and development Other__._ National defense: Research and development Other _ _ __ - Total, other developmental expenditures __ Current aids, special services, and operations: Civil National defense _ Total, current aids, special services, and operations Allowance for Appalachia Allowance for contingencies Interfund transactions ___ _ ____ Total administrative budget TRUST FUNDS Additions to Federal assets: Loans Public works Other Total, additions to Federal assets Additions to State, local, and private assets Expenditures for other developmental purposes _ 502 58 * 560 __ 213 391 . __ 5,390 50 4.057 63 4,107 18,665 2,296 22,199 2,684 20,961 19.374 2.443 21,816 2,012 2,221 24,883 2,682 780 -521 28,885 1,075 -579 29.045 1.204 -599 32,898 61 Retirement and social insurance benefits: Insurance and unemployment benefits _ Other Total, retirement and social insurance benefits _ _ Current aids, special services, and operations District of Columbia, deposit funds, and other unclassified items __ _ __ Interfund transactions _ ___ Total trust funds. Note.—For more information on this classification see special analysis D (pages 384 to 403). *Less than one-half million dollars. 41 SUMMARY TABLES Table 7. FEDERAL RECEIPTS AND EXPENDITURES IN THE NATIONAL INCOME ACCOUNTS (in billions of dollars) Description 1964 1965 1966 RECEIPTS, NATIONAL INCOME BASIS Personal tax and nontax receipts Corporate profits tax accruals Indirect business tax and nontax accruals Contributions for social insurance Total receipts national income basis 51.4 23.5 16.0 23.8 50.3 23.9 16.8 25.0 52.2 24.7 16.1 28.0 114.7 116.0 121.0 65.9 66.7 35.2 EXPENDITURES, NATIONAL INCOME BASIS Purchases of goods and services Transfer payments , Grants-in-aid to State and local governments Net interest paid Subsidies less current surplus of Government enterprises.. Total expenditures, national income basis Surplus ( + ) or deficit (—), national income basis 66.1 30.4 9.8 31.8 10.7 8.5 13.0 8.1 4.1 4.1 8.6 3.5 118.5 121.0 127.0 -3.9 -5.0 -6.0 RELATION OF THE FEDERAL SECTOR IN THE NATIONAL INCOME ACCOUNTS TO RECEIPTS FROM AND PAYMENTS TO THE PUBLIC RECEIPTS IL o 1 2 t 1 r e c e i p t s f n&tion211 m c o me 114.7 116.0 121.0 .6 .3 1.4 .4 .3 1.9 2. 1 -2.0 -2. 1 .9 -2.2 1.8 115.5 117.4 123.5 118.5 121.0 127.0 3.9 1.9 1.2 .4 1.4 1.9 -2.0 -1.8 -2.1 -1.7 -2.2 -1.1 120.3 121.4 127.4 s t c e o u n L $ _ « — — — — — — — — — — —. — — .•. — _ Receipts not included in Federal receipts in the national income accounts: i\e&lizd.tion on lo&ns stncL other s t s s c t s . . . _ . . _ . . . . . — — .._ District of Columbia government receipts Interest and other earnings Receipt adjustments to consolidated cash basis: Employer and employee contributions to Federal retirement funds '. Accrual to cash and other adjustments Total Federal receipts from the public EXPENDITURES Total expenditures, national income accounts. Expenditures not included in Federal activities in the national income accounts: Loans, purchase of land, deposit funds, etc District of Columbia government expenditures . Portion of interest and other expenditures offset by receipt in the national income accounts Expenditure adjustments to consolidated cash basis: Employer and employee contributions to Federal retirement funds Accrual to cash adjustments Total Federal payments to the public. .5 Note.—This table shows Federal receipts and expenditures on the basis used in the national income and gross national product statistics of the Department of Commerce. For a fuller explanation, see special analysis A (pp. 356 to 365). 42 THE BUDGET FOR FISCAL YEAR Table 8. RELATION OF AUTHORIZATIONS (In millions of dollars) Description TO 1966 EXPENDITURES 1964 1965 87,878 13,225 94,494 12,768 93,508 12,909 101,103 107,262 106,417 1966 ADMINISTRATIVE BUDGET FUNDS New obligational authority (tables 3 and 4):» Current authorizations Permanent authorizations Total new obligational authority Unobligated balances brought forward, start of year (table 10)...... Appropriations available in prior year Appropriations available from subsequent year Balances no longer available: Unobligated balances rescinded Unobligated balances lapsing Capital transfers from revolving funds to general fund Unobligated balances carried forward, end of year (table 10)_ 45,295 -647 775 46,723 -775 866 44,175 -866 871 -79 -805 -220 -46,723 -43 -1,439 -176 -44,175 -48 -1,035 -196 -41,093 Obligations incurred, net (table 9) Obligated balances brought forward, start of year (table 10). Adjustments of obligated balances in expired accounts Obligated balances carried forward, end of year (table 10) _ _. Deficiency in expired accounts, start of year 2 Deficiency in expired accounts, end of year 2 Interfund transactions (see note to table 14) 98,698 42,531 -260 -42,621 -67 67 -664 108,244 42,621 -20 -52,532 -67 67 -833 108,225 52,532 47 -60,451 -67 97,684 97,481 99,687 Total administrative budget expenditures (tables 1 and 5) From new obligational authority From balances of prior obligational authority _ -600 72,047 27,640 Note.—This table (administrative budget and trust funds) summarizes and brings into relationship totals from the various other tabulations. The types of new obligational authority and the considerations involved in the various means of financing agency activities are explained on pages 154 to 157. 1 Excludes appropriations to liquidate contract authorizations: 1964, $841 million; 1965, $1,227 million: 1966, $1,109 million. 2 Authority is recommended in 1966 to remove the deficiencies, which occurred between 1956 and 1961. 43 SUMMARY TABLES Table 8. RELATION OF AUTHORIZATIONS TO EXPENDITURES—Con. % Billions New Authority A To Be Used in 1966 m Expenditures in 1966 THE ADMINISTRATIVE BUDGET 1.9 Expiring Author Unspent Authorizations Unspent Authorizations for Expenditures in Enacted in Prior Years 9 6 7 To W be he|d for Expendjtures iin L Later t Y Years 672 67.2 Future Years f 101.5 (In millions of dollars) Description 1964 actual 1965 estimate 1966 estimate TRUST FUNDS New obligational authority (tables 3 and 4 ) : 3 374 31,159 1,414 30,343 471 34,041 31,533 Total new obligational authority 57,408 Unobligated balances brought forward, start of year (table 10)__ -19 Balances no longer available: Unobligated balances lapsing -60,317 Unobligated balances carried forward, end of year (table 10) 31,757 60,317 * -62,785 34,512 62,785 -20 -64,177 28,605 8,933 -10,060 71 29,290 10,060 -9,912 42 33,100 9,912 -9,912 27,549 1,857 -521 29,480 145 -579 33,099 398 -599 28,885 29,045 32,898 Current authorizations _ Permanent authorizations _ __ Obligations incurred, net (table 9) Obligated balances brought forward, start of year (table 10) Obligated balances carried forward, end of year (table 10) Adjustments for stock purchase, FNMA Subtotal Government-sponsored enterprise expenditures Interfund transactions (see note to table 14) Total trust fund expenditures (tables 1 and 5) From new obligational authority From balances of prior obligational authority 23,976 8,922 3 Excludes appropriations to liquidate contract authorizations: 1964, $3,975 million; 1965, $4,591 million; 1966, $4,877 million. *Less than one-half million dollars. 44 THE BUDGET FOR FISCAL YEAR 1966 Table 9. OBLIGATIONS INCURRED, NET (in millions of dollars) Description 1964 1965 143 65 24 3,764 8,026 727 48,733 1,059 ,724 1,171 331 420 689 361 11,942 2,752 764 575 479 4,856 5,476 560 57 178 75 27 5,644 7,874 844 49,578 390 285 387 387 692 762 1966 ADMINISTRATIVE BUDGET FUNDS 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 the Interior Department of Justice Department of Labor Post Office Department Department of State Treasury Department Atomic Energy Commission Federal Aviation Agency___: General Services Administration Housing and Home Finance Agency National Aeronautics and Space Administration Veterans Administration Other independent agencies District of Columbia Allowance for Appalachia Allowance for contingencies Total administrative budget 12,640 2,869 853 776 938 5,804 5,434 1,808 76 365 150 219 88 29 5,468 6,774 1,119 48,846 1,402 ,790 ,300 371 725 858 430 12,949 2,564 788 696 1,667 5,351 4,783 1.251 108 """650 98,698 108,244 108,225 4,187 16,618 3,710 655 1,268 1,142 1,025 3,776 17,487 3,370 618 1,388 1,186 1,466 3,739 20,405 3,366 516 1,561 1,249 2,265 28,605 29,290 33,100 TRUST FUNDS Department of Commerce Department of Health, Education, and Welfare. Department of Labor Veterans Administration Civil Service Commission Railroad Retirement Board Other agencies Total trust funds. SUMMARY TABLES 45 Table 10. BALANCES OF OBLIGATIONAL AUTHORITY (in millions of dollars) Start 1964 Description Obligated Start 1965— Start 1966— Start 1967— End 1966 End 1964 End 1965 Un- Obli- Un- Obli- Un- Obli- Unobli- gated obli- gated obli- gated obligated gated gated gated ADMINISTRATIVE BUDGET FUNDS 21 41 Legislative branch 44 26 38 35 48 5 6 4 5 The Judiciary 4 3 4 3 1 Executive Office of the President 6,461 9,534 6,095 9,018 7,307 9,085 7,906 Funds appropriated to the President 986 3,982 914 5,413 Department of Agriculture 3,850 846 4,997 531 139 1,042 Department of Commerce S 620 652 537 732 Department of Defense—Military. 18,655 11,661 17,471 12,725 18,949 11,768 19,895 66 343 Department of Defense—Civil 250 156 156 277 33 Department of Health, Education, and 363 1,893 Welfare. 1,720 368 3,395 270 5,395 656 213 531 Department of the Interior 323 369 224 139 34 40 15 Department of Justice 17 20 23 14 398 238 Department of Labor 14 307 42 304 304 716 572 Post Office Department 13 528 407 13 7 131 116 54 Department of State 85 96 46 33 327 240 274 Treasury Department 158 267 151 4 Atomic Energy Commission 1,245 336 1,232 327 1,401 83 1,435 479 Federal Aviation Agency 246 369 282 441 357 159 501 397 261 431 419 General Services Administration. 278 258 Housing and Home Finance Agency 3,630 9,328 3,781 9,535 4,543 10,390 5,756 National Aeronautics and Space Administration 1,730 548 2,414 789 3,318 235 3,569 522 335 851 330 388 Veterans Administration 766 947 Other independent agencies 2,348 9,438 2,745 9,904 4,184 9,272 5,322 6 97 District of Columbia 107 84 362 Allowance for Appalachia 255 Allowance for contingencies 50 300 Total administrative budget 34 9,183 687 99 10,296 264 127 14 308 7 10 12 100 187 8,648 144 1,660 9,230 74 42,531 45,295 42,621 46,723 52,532 44,175 60,451 41,093 TRUST FUNDS Department of Commerce Department of Health, Education, and Welfare Department of Labor._ Veterans Administration Civil Service Commission Railroad Retirement Board Other agencies l Total trust hinds 6,139 2,718 6,655 2,259 6,293 2,349 6,120 2,566 23 21 ,078 1621 875 1421 ,950 22 21,312 65 8,107 11 6,850 8 6,269 45 7,491 338 6,735 329 6,537 350 6,383 345 6,441 122 15,971 92 13,511 134 17,148 105 14,699 97 3,867 96 3,762 92 3,696 97 4,006 2,231 3,520 2,834 4,356 3,011 4,694 3,135 4,536 8,933 57,408 10,060 60,317 9,912 62,785 9,91264,177 Note.—For explanation of balances carried forward see page 156. "Less than one-half million dollars. Obligated balances include deposit funds. 1 Table 11. THE PUBLIC DEBT (in millions of dollars) Description 1964 actual 1965 estimate 1966 estimate PUBLIC DEBT HELD BY THE PUBLIC debt held by the public, start of year 248,125 251,160 254,038 4,802 -69 4,009 -97 3,908 -112 1,099 -874 1,119 -2,197 724 Net borrowing from or repayments (—) to the public, uct net borrowing of Government enterprises from the lblic (included on preceding line) (table B-10) 4,958 2,833 4,520 1,923 -45 754 Net increase in public debt held by the public 3,035 2,878 3,766 251,160 254,038 257,804 57,735 60,553 62,366 2,818 1,813 1,926 60,553 62,366 64,292 251,160 60,553 254,038 62,366 257,804 64,292 311,713 316,404 322,096 654 360 268 159 136 136 Total public and guaranteed Government enterprise debt.. n of public debt not subject to limitation. _ 312,526 -362 316,900 -355 322,500 -349 Debt subject to limitation, end of year 312,164 316,545 322,151 324,000 324,000 285,000 e in public debt held by the public during the year: solidated cash excess of receipts (—)or payments (tables and 2) sipts from exercise of monetary authority (—) ease or decrease (—) in debt issued in lieu of checks ableA-3) ease or decrease (—) in cash on hand debt held by the public, end of year PUBLIC DEBT HELD BY GOVERNMENTADMINISTERED FUNDS debt held by Government-administered funds, start ear e in public debt held by Government-administered Is during the year (table B-ll) debt held by Government-administered funds, end of PARISON OF PUBLIC DEBT WITH STATUTORY LIMITATION AT END OF YEAR debt: d by the public d by Government-administered funds Total public debt n of Government enterprise debt subject to the public ebt limitation: d by the public d by Government-administered funds ory limitation on public debt, end of year: ler existing legislation __ -_ ler proposed legislation 0) e.—The first portion of this table reflects borrowing (or repayment thereof) through the ce of U.S. securities to the public by both the Treasury and by certain "Government enter" a term used here to refer to activities which have authority to issue their own securities, orrowing by such enterprises is then deducted to arrive at the changes in the public debt (a which relates to securities issued by the Treasury). "Government-administered funds" in ible refers to activities which have authority to buy U.S. securities for investment purposes. > be proposed later after timing of estimated transactions can be examined on a more detailed 47 SUMMARY TABLES Table 12. CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH As of June Description Executive Office of the President Department of Agriculture Department of Commerce Department of Defense: Military and Military assistance l Civil 2 . Department of Health, Education, and Welfare.. Department of the Interior Department of Justice Department of Labor Post Office Department Department of State Agency for International Development Peace Corps Treasury Department Atomic Energy Commission Federal Aviation Agency General Services Administration Housing and Home Finance Agency National Aeronautics and Space Administration _ Veterans Administration Other independent agencies: Civil Service Commission Selective Service System Small Business Administration Tennessee Valley Authority The Panama Canal United States Information Agency Miscellaneous independent agencies Other employment: 4 Economic opportunity programs Appalachia program Allowance for contingencies Total. 1964 actual 1965 estimate 1966 estimate 1,542 108,476 33,261 1,580 110,500 33,350 1,660 113,380 34,150 997,863 31,893 83,293 3 69,867 32,483 9,292 585,313 24,668 15,642 1,082 86,748 7,268 45,377 34,897 13,840 32,499 172,171 980,000 31,990 85,500 68,700 33,260 9,130 589,500 24,300 15,550 1,110 88,000 7,300 45,100 36,800 14,020 33,650 170,800 961,000 32,500 91,500 70,400 33,490 9,120 610,000 24,800 15,550 1,240 91,700 7,320 44,430 38,550 14,700 33,950 171,280 3,887 7,108 3,378 17,353 14,773 11,971 23,290 3,970 7,520 3,650 16,150 15,250 11,930 24,570 3,960 7,540 4,000 17,400 15,260 11,840 25,600 4,600 300 920 5,400 1,100 2,860 2,469,000 2,495,680 2,469,235 Note.—The figures for 1965 and 1966 include tentative estimates for employment under appropria tions proposed for later transmittal. In accordance with definitions of the Civil Service Commission, the figures cover both those employees who are working on June 30, and part-time and intermittent employees who work at any time during the month of June. More detailed information on employment is contained in special analysis C on pages 376 to 383. 1 Consists of civilian employment for military functions and military assistance. 2 Employment of the Panama Canal and the United States Soldiers' Home is included] under "Other independent agencies" below. 3 Excludes 406 project employees for the public works acceleration program for fiscal year 1964. 4 Subject to later distribution. PART 3 RECEIPTS 49 ANALYSIS OF RECEIPTS BY SOURCE This section of the budget presents detailed information about the revenue estimates and the changes recommended in tax laws. Economic base of estimates.—Continued economic expansion is expected to raise gross national product to $660 billion in calendar year 1965, an increase of nearly $38 billion over calendar year 1964. This projection should be considered as the midpoint of a $10 billion range, from $655 billion to $665 billion. Personal income and corporate profits will rise along with the growth in output. T h e Revenue Act of 1964, now in full effect with reduced tax rates t h a t became effective on J a n u a r y 1, 1965, will continue to add to the economy's growth. Proposed legislation also will affect receipts in fiscal year 1966 and will produce, on balance, an additional stimulus to the economy. T h e proposed excise tax cuts will provide a significant economic thrust and the budget's expenditure proposals are also expansionary. Trust fund receipts will rise, chiefly through increased payroll taxes, effective January 1, 1966, for the old-age and survivors insurance and new hospital insurance trust funds; the economic effect of t h e increase in trust receipts will be more than offset in fiscal 1966 by new and expanded trust fund expenditures. Specifically, the revenue estimates in the budget for 1966 are based on the following economic assumptions: ECONOMIC ASSUMPTIONS [Calendar years In billions] 1963 actual Gross national product Personal income Corporate profits before taxes $583.9 464.1 51.3 1964 preliminary $622.3 491.4 57.2 1965 estimate $660 520 61 The level of aggregate economic performance is the primary determinant of tax revenues, but estimates of tax revenues cannot be derived directly and simply from the assumed levels of economic performance. Several important factors intervene, including the timing of tax payments, differences between the definitions of statutory and economic incomes, and the distribution of the various forms of income among taxpayers. 50 51 RECEIPTS Estimated changes in revenues.—Total receipts from the public are estimated at $123 billion in fiscal year 1966, an increase of $6 billion over the level estimated for fiscal year 1965. These estimates assume enactment of the revenue legislation discussed below. RECEIPTS FROM THE PUBLIC [Fiscal years. In millions] Source 1964 actual 1965 estimate 1966 estimate Administrative budget receipts: Individual income taxes___ Corporation income taxes Excise taxes Estate and gift taxes Customs Miscellaneous budget receipts Subtotal, administrative budget receipts Trust fund receipts: Employment taxes Deposits by States, unemployment insurance Excise taxes Federal employee and agency payments for retirement Interest on trust funds Veterans life insurance premiums, etc Other trust fund receipts Subtotal, trust fund receipts Intragovernmental transactions Total, receipts from the public $48,697 23,493 10,211 2,394 1,252 3,412 $47,000 25,600 10,733 2,800 1,415 3,652 $48,200 27,600 9,770 3,200 1.500 4,130 89,459 91,200 94,400 16,832 3,042 3,519 2,029 1,613 494 2,801 16,685 2,950 3,639 2,159 1,747 494 2,840 18,731 2,900 3,959 2,162 1,867 491 3,506 30,331 33.616 -4,259 -4,526 115,530 117,384 123,490 Individual income tax receipts are estimated at $48.2 billion in fiscal 1966, compared with $47 billion in 1965. Higher personal incomes will produce a substantial increase in the individual income tax base. Part of the rise in receipts will be offset by the second-stage reduction of income tax rates that was enacted in the Revenue Act of 1964 and went into effect on January 1, 1965. The total effect on 1966 revenues of the individual income tax reduction is estimated at $11.5 billion at the presently assumed higher level of personal income, but this higher level would not have been possible without the stimulus of the tax reduction. Corporation income tax receipts in fiscal year 1966 will reach an estimated level of $27.6 billion, a rise above fiscal 1965 receipts of $2 billion. The tax rate on corporation incomes above $25,000 de- 52 THE BUDGET FOR FISCAL YEAR 1966 creased by 2 percentage points for corporate tax years beginning after December 31, 1964. The resulting decline in tax collections will be more than offset by increased corporate profits and the third of seven steps in the acceleration of corporate payments on estimated income tax liabilities. Excise tax receipts in the administrative budget will decline to $9.8 billion in fiscal year 1966. Proposed legislation to repeal certain excise taxes will reduce collections by $1.5 billion. This will be offset in part by several new and increased taxes on users of the Federal airways and inland waterways systems. All receipts from these sources will be deposited in the general fund. Collections will also increase from excise taxes that remain unchanged, reflecting increased sales of the products and services involved. Miscellaneous receipts will rise by $478 million to $4.1 billion. The major sources for increased receipts are higher payments of earnings by the Federal Reserve System and of rents on Outer Continental Shelf lands and proposed legislation to accelerate sales from the strategic and critical materials stockpile. Employment taxes are estimated at $18.7 billion. The increase of $2 billion reflects mainly the effect of proposed legislation discussed below. Deposits by States for unemployment insurance will fall to $2.9 billion in 1966, a change of $50 million from 1965. High and rising employment levels are expected to qualify many firms for reduced tax rates under State experience rating provisions. Proposed legislation.—The major revenue proposals recommended for enactment this year are summarized in this section. Excise taxes.—Legislation is being recommended to repeal or reduce selected excise taxes on July 1, 1965. Excise tax liabilities will be reduced by $1.75 billion, of which $1.5 billion will be reflected in lower collections in fiscal year 1966. The proposed legislation also will make permanent all the taxes that are continued. It will replace temporary tax legislation under which excise taxes on alcoholic beverages, cigarettes, passenger automobiles, automobile parts and accessories, and general telephone service automatically would be reduced or would expire after June 30, 1965. Employment taxes.—It is recommended that the taxable income base for the old-age, survivors, and disability insurance programs be raised from $4,800 to $5,600, effective on January 1, 1966. It is also RECEIPTS 53 proposed to increase the payroll tax from the current 7.25% to 8.5% on January 1, 1966, instead of 8.25% as required by existing law. Of the increase, 0.6% will be devoted to meeting the requirements of the new hospital insurance program. The changes will also provide funds for increased benefit payments under the old-age, survivors, and disability insurance programs. Increases will also be requested for the Railroad Retirement Board trust fund. Federal unemployment tax.—Legislation will be proposed to increase the payroll tax under the Federal-State Employment Security system, effective on calendar year 1966 wages. The increased tax rate is designed to strengthen the administration and to finance proposed improvements in the system, including a longer period of eligibility for unemployment benefits for workers permanently attached to the labor force. Federal trust fund receipts under this program are not expected to show the effects of the new tax rate until fiscal year 1967 because receipts are not deposited with the Treasury until after the calendar year ends. User charges.—Legislation authorizing additional user charges and extending others is recommended, in keeping with the policy that a greater share of the costs of certain programs which provide special benefits or privileges should be borne by identifiable primary beneficiaries. Commercial and general aviation users of the Federal airways system would be expected to contribute directly to defraying a larger portion of its costs. For general aviation, a tax of 4 cents per gallon on gasoline and jet fuels is recommended in place of the current 2 cents per gallon tax on gasoline alone. Jet fuels purchased by commercial aviation would be taxed at 2 cents per gallon, and the same rate of taxation would be continued for gasoline used in commercial aviation. The recommendations also include a 2% tax on air freight and continuation of the 5% tax on air passenger travel on a permanent basis. These taxes would be deposited in the general fund, including the gasoline tax paid by airways users that now goes into the highway trust fund. Institution of a 2 cents per gallon fuel tax is proposed for vessels using the inland waterways system. The self-financed Federal-aid interstate highway program is facing rising construction costs. To provide increased receipts for the highway trust fund, legislation will be proposed to increase taxes on highway users. These tax rate increases together with an extension of all highway trust fund taxes beyond the present October 1, 1972, expiration date will permit the interstate program to continue at a reasonable rate of progress. 54 THE BUDGET FOR FISCAL YEAR 19 66 Congress is requested to authorize new or revised user charge schedules to cover the costs of several specific services available from the Federal Government. A revised fee schedule for - the Patent Office, for example, would bring it closer to a self-sustaining pattern of operations. For several programs, the proposed user charges will be employed directly to offset the expenditures needed for their operation. Activities included within this group are: (1) inspection of meat and poultry, grading of wheat, cotton and tobacco, and inspection of warehouses; (2) border inspection of private vessels and aircraft t h a t require overtime work; and (3) certain technical assistance provided by the Soil Conservation Service. Revolving funds.—Legislation is requested to create revolving funds for the Rural Electrification Administration and three power administrations—Bonneville, Southeastern, and Southwestern. With authority to operate as revolving funds, the agencies would be able to finance their current operations and necessary capital outlays with collections on outstanding loans and revenues from power sales subject to control through the regular appropriations process. Enactment of this legislation will reduce, equally, miscellaneous receipts of the Treasury and expenditures by the agencies; it will not affect the budgetary surplus or deficit. ESTIMATED EFFECT OF PROPOSED LEGISLATION ON RECEIPTS FROM THE PUBLIC Hn millions) Proposal Fiscal year 1966 Administrative budget receipts: Extension of current excise tax rates: 1 Alcoholic beverages Cigarettes __ _ Passenger automobiles _ Parts and accessories for automobiles General telephone service __ _ Subtotal, extension of current excise tax rates _ _ _ ._ ___ Total of proposed excise tax reductions and repeals, not reflected in detailed estimates Full year effect $461 265 480 75 475 $301 245 525 89 630 1,756 1,790 -1,500 -1,750 1 These estimates reflect extension of current tax rates beyond June 30, 1965. Details do not show possible effect of proposed.excise tax reductions and repeals which are presented only in total 55 RECEIPTS ESTIMATED EFFECT OF PROPOSED LEGISLATION ON RECEIPTS FROM THE PUBLIC—Continued [In millions] Fiscal year 1966 Proposal Administrative budget receipts—Continued Transportation user charge proposals: Make permanent 5 % tax on air passenger transportation Tax transportation of air freight at 2 % Tax fuels used in general aviation at 4 cents per gallon Tax fuels used in commercial aviation at 2 cents per gallon Tax fuel used on'inland waterways at 2 cents per gallon. _- Subtotal, transportation user charge proposals Other user charges affecting budget receipts: Increase Patent Office fees _ All other Subtotal, other user charge proposals. _ _ Rural Electrification Administration revolving fund ___ Power Administration revolving funds _____ __ Other revolving funds __ _ _ __ _ _ Subtotal, revolving funds Total, administrative budget proposals Full year effect 116 4 11 82 7 140 5 13 82 8 220 248 15 5 15 5 20 20 -177 -124 -20 -177 -124 -20 -321 -321 175 -13 219 -19 247 -14 200 233 522 4 2,350 7 526 2,357 726 2,590 901 2,577 Trust fund receipts: Highway trust fund: Increase certain taxes paid by highway users Transfer aviation gasoline receipts to general fund Subtotal, highway trust fund proposals Social insurance trust funds: Increase taxable wage base and payroll tax: Old-age, survivors, and disability insurance and hospital insurance for the elderly programs _ Railroad retirement program. __ Subtotal, social insurance trust fund proposals Total, trust fund proposals Total, proposed legislation ___ _._ __ 56 THE BUDGET FOR FISCAL YEAR 19 66 Table 13. SOURCES OF RECEIPTS (in millions of dollars) [Note.— Estimates include effects of proposed legislation, except for proposed excise rate reductions which are shown in total only.) 1964 actual Description 1966 estimate 1965 estimate ADMINISTRATIVE BUDGET FUNDS Individual income taxes: Withheld Other____; 39,259 15,331 . 36,200 15,300 38,400 14,900 54,590 -5,893 51,500 -4,500 53,300 -5,100 48,697 47,000 48,200 24,301 -808 26,400 -800 28,400 -800 23,493 25,600 27,600 2,536 . 887 25 108 21 2,650 915 26 134 23 2,750 940 3,577 3,748 3,882 1,977 17 56 1 2 2,050 18 60 1 2 2,075 18 63 1 2 2,053 2,131 2,159 Taxes on documents, other instruments, and playing cards: Issues of securities, stock and bond transfers, purchases of foreign securities, and deeds of conveyance... _ _ Playing cards. _ _ __ __ 163 9 175 10 190 11 Total taxes on documents, other instruments, and playing cards. . . . _ 172 185 201 4 76 1,746 229 11 1,775 237 51 78 78 81 Gross individual income taxes Refunds Net individual income taxes_ _ _ _ _ . . Corporation income taxes Refunds Net corporation income taxes. Excise taxes: Alcohol taxes: Distilled spirits (domestic and imported) Beer Rectification tax Wines (domestic and imported) Special taxes in connection with liquor occupations _ Total, alcohol taxes Tobacco taxes: Cigarettes (small) Manufactured tobacco (chewing, smoking, and snuff) Cigars (large) Cigarette papers and tubes All other __ _ .. Total, tobacco taxes Manufacturers' excise taxes: Gasoline Lubricating oils Passenger automobiles Parts and accessories for automobiles Electric, gas, and oil appliances _ _ _ _. 28 140 24 1,825 242 85 57 RECEIPTS Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued (Note.— Estimates include effects of proposed legislation, except for proposed excise rate reductions which are shown in total only.] 1964 actual Description 1966 1965 ADMINISTRATIVE BUDGET FUNDS—Continued Excise taxes—Continued Manufacturers' excise taxes—Continued Electric light bulbs Radio and television receiving sets, phonographs, phonograph records, and musical instruments Mechanical refrigerators, quick-freeze units, and selfcontained air-conditioning units Business and store machines Photographic equipment Matches Sporting goods, including fishing rods, creels, etc Firearms, shells, and cartridges Pistols and revolvers Fountain and ballpoint pens, mechanical pencils 42 44 47 244 266 287 63 72 77 38 4 33 21 2 9 68 74 35 4 31 19 2 10 2,640 2,727 2,873 189 30 177 79 205 31 197 82 215 32 215 87 475 515 549 380 531 106 440 600 122 475 47 41 6 75 7 95 23 52 43 7 80 8 95 23 6 2 6 2 57 45 7 85 9 95 24 7 2 1,318 1,478 1.659 Undistributed depositary receipts and unapplied collections. 70 48 54 Gross excise taxes before rate reductions and repeals. 10,304 10,832 11,377 Total, manufacturers' excise taxes. Retailers' excise taxes: Jewelry Furs Toilet preparations Luggage, handbags, wallets, etc _• Total, retailers' excise taxes. Miscellaneous excise taxes: Toll telephone service, telegraph and teletypewriter service, wire mileage service, etc General telephone service Transportation of persons Transportation of freight by air Fuel used on inland waterways Jet fuel Admissions, exclusive of cabarets, roof gardens, etc Cabarets, roofgardens, etc Wagering taxes, including occupational taxes Club dues and initiation fees Leases of safe deposit boxes Sugar tax Coin-operated amusement and gaming devices Bowling alleys and billiard and pool tables All other miscellaneous excise taxes .__ Total, miscellaneous excise taxes 72 30 4 28 17 2 630 140 4 7 72 58 THE BUDGET FOR FISCAL YEAR 1966 Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued (Note.— Estimates include effects of proposed legislation, except for proposed excise rate reductions which are shown in total only.] 1964 Description 1966 1965 ADMINISTRATIVE BUDGET FUNDS—Continued Excise taxes—Continued Refunds -93 -99 -107 Net excise taxes before rate reduction or repeal. _ Effect of rate reduction or repeal 10,211 10.733 11.270 -1.500 Net excise taxes after rate reduction or repeal 10,211 10,733 9,770 2,416 -23 2,825 -25 3.225 -25 2,394 2,800 3.200 1,284 -32 1.447 -32 1,532 -32 1,252 1.415 1,500 6 70 1 6 98 1 113 * 6 7 23 9 7 3 14 17 8 24 10 12 3 16 41 70 90 137 1 1 1 5 37 5 1 5 5 1 73 6 48 85 12 Estate and gift taxes Refunds Net estate and gift taxes Customs _ Refunds _ Net customs ____ _ _ ___ _ ___ _. _ __ __ __ ______ Miscellaneous receipts: Miscellaneous taxes, Seigniorage and bullion charges. Gifts and contributions _ _ _ _ Fees for permits and licenses: Admission fees and permits __ Business concessions Immigration, passport, and consular fees___ Patent and copyright fees _ _ ____ Registration and filing fees Landing fees, airports. _ _ ______ _ _ _ _ Miscellaneous fees for permits and licenses _ _ _ _ _ _ _ Total, fees for permits and licenses __ Fines, penalties, and forfeitures: Fines, penalties, and forfeitures—agriculture laws Fines, penalties, and forfeitures—customs, commerce, and antitrust laws Forfeitures of unclaimed money and property. ___ - _ Proceeds from old series currency, act of June 30, 1961 Other fines, penalties, and forfeitures _ _ Total, fines, penalties, and forfeitures. "Less than one-half million dollars. _ - _ 6 8 26 26 17 3 17 6 59 RECEIPTS Table 13. SOURCES OF RECEIPTS (in millions of dollars) — C o n t i n u e d [Note.— Estimates include effects of proposed legislation, except for proposed excise rate reductions 1964 Description 1966 1965 ADMINISTRATIVE BUDGET FUNDS—Continued Miscellaneous receipts—Continued Interest: Interest on loans to Government-owned enterprises Interest on domestic loans to individuals and private organizations Interest on foreign loans and deferred payments Miscellaneous interest collections Total, interest Dividends and other earnings: Deposits of earnings. Federal Reserve System. Payment equivalent to income taxes , _ Miscellaneous dividends and earnings. Total, dividends and other earnings. Rents: Rent Rent Rent Rent ___ _. of land _ __ on Outer Continental Shelf lands.. . . - . . . . of real property, not otherwise classified of equipment and other personal property Total, rents Royalties: Royalties on Outer Continental Shelf lands Miscellaneous royalties on natural resources Total, royalties Sale of products: Sale of timber and other natural land products _ __ Sale of minerals and mineral products _ _ Sale of power and other utilities _ _ . . _.__ Sale of publications and reproductions.. _ _ _ __ _ Sale of miscellaneous products and byproducts _ Total, sale of products Fees and other charges for services and special benefits: Fees and other charges for administrative, professional, and judicial services Fees and other charges for communication and transportation services. _ _- __ 648 815 581 101 184 22 102 116 32 111 194 34 955 1.065 921 947 27 10 1,368 13 10 1.554 13 10 984 1,390 1.577 16 6 21 31 17 95 26 31 270 29 32 74 168 349 11 120 13 131 16 140 131 144 156 187 11 200 6 4 205 11 218 7 5 229 11 111 7 5 409 446 363 18 18 24 11 12 14 18 60 THE BUDGET FOR FISCAL YEAR 1966 Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued which are shown in total only.] Description 1964 1966 1965 ADMINISTRATIVE BUDGET FUNDS—Continued Miscellaneous receipts—Continued Fees and other charges for services and special benefits— Continued Charges for subsistence, laundry, and health services Fees and other charges for services provided to the District of Columbia Fees for general governmental services Other fees and charges 5 6 6 5 15 64 5 17 71 5 18 87 Total, fees and other charges for services and special benefits 118 129 154 67 225 39 73 291 50 75 372 50 331 415 497 394 192 107 187 149 8 15 38 73 8 8 752 319 310 Recoveries and refunds: Recoveries under military occupation Recoveries of excess profits and costs Recoveries under foreign aid programs Refunds of erroneous payments Miscellaneous recoveries and refunds 21 16 49 5 40 34 15 44 4 34 35 16 41 4 38 Total, recoveries and refunds. _ 130 132 135 4,077 -1 4,489 -4 4.731 -1 4,076 4.485 4,730 -664 -833 -600 89.459 91.200 94.400 Sale of Government property: Sale of real property Sale of equipment and other personal property Sale of scrap and salvage material Total, sale of Government property __ Realization upon loans and investments: Repayments from States and other public bodies Repayments on domestic loans to individuals and private organizations Repayment of foreign loans. Repayment of miscellaneous recoverable costs __ Miscellaneous repayments on loans and investments Total, realization upon loans and investments Gross miscellaneous receipts. Refunds _ Net miscellaneous receipts Interfund transactions Total, administrative budget receipts _ 45 140 9 9 61 RECEIPTS Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued [Note.— Estimates include effects of proposed legislation. except for proposed excise rate reductions al only.] Description 1964 1965 14,488 1,070 594 851 14.556 1,081 639 613 _ -170 16,832 -204 16.685 15,748 1.313 711 571 600 -211 18,731 _ 3,042 2.950 2,900 2,641 357 413 128 106 2.716 376 425 140 103 _ -127 3,519 -121 3,639 2.790 389 445 150 105 200 -120 3.959 Federal employees and agency payments for retirement: Federal employees retirement funds _ 2,029 2,159 2.162 539 68 213 130 421 20 211 7 4 1,613 566 64 244 142 496 10 213 8 4 1,747 597 57 265 147 571 1 214 9 4 1.867 494 494 491 1,223 91 690 80 400 935 3,419 1.341 95 977 72 460 1,159 4.105 30.852 -521 30,331 31,094 -579 30,515 34,215 -599 33.616 -4.259 -4,331 -4,526 115.530 117,384 123.490 TRUST FUNDS Employment taxes: Federal old-age and survivors insurance trust fund Federal disability insurance trust fund Railroad retirement account _ Unemployment trust fund _ _ _ __ Hospital insurance _ _ _ _ _ Refunds _ _ Net employment taxes._. __ Unemployment tax deposits by States: Unemployment trust fund Excise taxes: Highway trust fund: Gasoline tax Automobile truck, bus, and trailer taxes Tire, inner tube, and tread rubber taxes Tax on diesel fuel used on highways Use tax on certain vehicles __ Proposed increase _____ Refunds __ __ _ _ - _ _ __ _ __ Net excise taxes Interest on trust funds: Federal old-age and survivors insurance trust fund Federal disability insurance trust fund Unemployment trust fund _ _ Railroad retirement account Federal employees retirement funds Highway trust fund Veterans life insurance funds Indian tribal funds Other trust funds __ __ . Interest on trust funds Veterans life insurance premiums, etc.: Veterans life insurance funds Miscellaneous trust fund receipts: Payments by States to: Federal old-age and survivors insurance trust fund Federal disability insurance trust fund Foreign assistance deposits Indian tribal funds District of Columbia Other trust fund receipts Net miscellaneous trust fund receipts Subtotal, trust fund receipts Interfund transactions Total, trust fund receipts Intra governmental transactions Total, receipts from the public __ . __ 1.167' 86 720 87 356 907 3,322 1966 PART 4 THE FEDERAL PROGRAM BY FUNCTION 63 ANALYSIS OF FEDERAL ACTIVITIES BY FUNCTION This part of the budget describes the program recommended for the Government for fiscal year 1966 according to the 12 major functions served. It covers both existing programs and new proposals. The 1966 program has three major objectives: (1) to strengthen further the Nation's defenses and provide for its international obligations; (2) to advance our economy and the well being of our people; and (3) to minimize the taxpayer's burden by reducing costs, weeding out obsolete activities, and operating essential activities efficiently. SUMMARY In fiscal year 1966, total Federal payments to the public are estimated at $127.4 billion. This amount includes not only the $99.7 billion of expenditures in the administrative budget but also the outlays of Government trust funds, which finance such programs as social security and Federal-aid highway construction. For the first time since 1950, payments in 1966 for national defense, international, and space objectives will account for less than half of the total. Outlays for these functions combined are estimated at $61.8 billion in 1966. Interest payments and veterans benefits— which represent mainly continuing costs arising from past wars—are estimated to be $13.9 billion, another 11% of the total. The remaining Federal payments are expected to be $51.7 billion, or almost 4 1 % of the total. About two-thirds of this amount is for health, labor, and welfare programs—mainly social security, unemployment compensation, and other trust fund payments. Apart from the expenditures estimated in the 12 functional categories, the budget includes for fiscal year 1966 special allowances of $107 million for a comprehensive program to promote the economic development of the Appalachian region and $400 million to cover contingencies that may arise during the fiscal year. The amount included for contingencies is high to assure that adequate provision has been made in the 1966 budget for unanticipated developments or for recommendations which may result from various studies and analyses that have been initiated. The program for Appalachia is proposed as a concerted effort to build up the economic base for this particularly depressed region and complements the nationwide area redevelopment and economic opportunity programs. 64 THE FEDERAL PROGRAM BY FUNCTION 65 SPECIAL ASPECTS OF THE GOVERNMENT PROGRAM The following summary highlights certain significant aspects of the Government's 1966 budget program. Federal expenditures and national output.—Federal expenditures in the national income accounts are estimated to be $127.0 billion in 1966, an increase of $6.0 billion over 1965. This increase in purchases of goods and services and other income payments will provide a strong stimulus to the Nation's economy during the coming months. Different types of Federal expenditures have different economic effects. Direct Federal purchases of goods and services represent the use of currently produced resources by the Federal Government. These purchases are estimated to be $66.7 billion in 1966 and will amount to about 10% of the gross national product. More than fourfifths of Federal purchases are for defense and space activities. Federal expenditures other than for purchases of goods and services * directly affect income and thereby influence consumer spending, business investment, and State and local government purchases. These Federal outlays are estimated to be $60.3 billion in 1966. This is about 9% of the gross national product, up slightly from the estimate for the current year. The largest share of this total—$35.2 billion—represents Federal transfers of purchasing power to individuals through such payments as old-age, survivors, and disability insurance benefits, unemployment compensation, and veterans pensions. Transfer payments have a significant impact on the Nation's economy because they add to the income of millions of individuals and families and quickly find their way into the Nation's spending stream through private (rather than governmental) use of real resources. Grants-in-aid to State and local governments are a major factor in the cooperative financing of such essential services as public assistance, public health, education, and highways and other forms of transportation. These payments are estimated to be $13.0 billion in 1966. Federal expenditures of an investment nature.—Federal expenditures for investment in physical and human resources are essential for achieving a higher rate of future economic growth. These expenditures contribute directly to an expansion of the Nation's capacity to produce goods and services. Of the total Federal cash payments to the public estimated for 1966, about $14.9 billion or 11.7% are for activities (outside of defense and space) which—directly or indirectly—will increase physical assets and otherwise promote productivity and economic growth. Considering only payments other than those for defense or space programs, 21.3% of payments will represent investments of this nature. 750-000 0—65 5 66 THE BUDGET FOR FISCAL YEAR 1966 Additions to Federal Assets - Other Than Defense and Space Of the $69.8 billion of estimated 1966 outlays for purposes other than defense and space, a sizable amount is for additions to such Federal assets as civil public works and major equipment and other physical assets. The Federal Government also makes large gross disbursements for housing, farm, small business, and other loans. In 1966, these disbursements will be largely offset by loan repayments and sales of mortgages and other financial assets. Another large part of administrative budget and trust outlays for programs other than defense and space represents grants for State, local, and private physical assets—such as highways, schools, hospitals, conservation projects, and other physical facilities. The remaining part of nondefense and nonspace investment outlays proposed for 1966 is for investment in human resources and natural resource surveys. This includes $3.8 billion for such activities as education, training, and health and $1.8 billion for scientific research and development. No less important than physical assets, these outlays represent an investment in the future progress of the Nation by increasing knowledge, developing skills, and strengthening our scientific and technological resources. THE FEDERAL PROGRAM BY FUNCTION 67 During fiscal year 1966, the Federal Government will also spend about $8.1 billion for defense research and development, including the atomic energy program, and $4.7 billion for space research and development. In the long run, many of these outlays will contribute to the technological development and economic growth of our country. Federal expenditures and the balance of payments.—During calendar year 1964, the Nation's balance of payments deficit declined significantly. An important factor in this encouraging result was the continued expansion of our exports, reflecting the price stability of U.S. products and the positive private response to the Government's export expansion program. In addition, the interest equalization tax on foreign securities enacted by the 88th Congress has helped to hold down private capital outflows. The Federal Government will continue to reduce the adverse effect of its own activities on the balance of payments. Actions being taken include: (1) Particularly close control and reduction of proposed agency activities which result in overseas payments. (2) Special arrangements to maximize Federal Government receipts from overseas, including agreements with certain of our European allies for sharing the costs of collective defenses. (3) Continued efforts to insure that foreign assistance expenditures are used for purchasing goods in the United States to the maximum feasible extent. (4) Sale of special nonmarketable, medium-term Treasury securities to foreign central banks. (5) Development of policies and procedures to insure that foreign currencies owned by the United States are used in the most advantageous way possible. These and other efforts have significantly decreased the net balance of payments outflow associated with Government programs. This outflow is estimated to decrease by almost $1 billion from 1963 to 1966. Federal payments overseas dropped by over $500 million from 1963 to 1964. The 1964 level is expected to be maintained in 1965 and 1966, despite rising prices overseas and continued substantial U.S. responsibilities abroad. Regular receipts of the Federal Government from foreign countries are expected to increase by more than $400 million between 1963 and 1966. (These figures exclude special receipts of a nonrecurring nature such as prepayments of loans, sales of nonmarketable medium-term securities, and advances received on military exports.) 68 THE BUDGET FOR FISCAL YEAR 1966 NATIONAL DEFENSE Through determined efforts in the past 4 years, our national defense establishment has been brought to a level of commanding superiority. These efforts have been expensive, b u t they have also been productive. We have largely completed a buildup of the world's most powerful military establishment, and our balanced forces are clearly superior to those of any potential aggressor. This superiority will be maintained in the future. NATIONAL DEFENSE (Fiscal years. In millions) Program or agency 1964 actual Administrative Budget Recommended new obligational authority 1966 1965 estimate estimate for 1966 Payments to the public Funds: Department of Defense—military functions: Military personnel _ Operation and maintenance Procurement... Research, development, test, and evaluation Military construction Family housing Civil defense Revolving and management funds Subtotal, Department of Defense—military functionsMilitary assistance Atomic energy Defense-related activities: Stockpiling of strategic and critical materials Expansion of defense production Selective Service System Emergency preparedness activities Subtotal, administrative budget Trust $14,560 12,472 11,412 6,709 1,313 736 194 49,760 48,100 47,900 1,485 1,200 1.100 2,765 2,700 2,530 47,395 1.170 2,481 18 76 48 19 17 -32 48 15 50 16 54,181 52,160 51,578 *51.129 16 91 41 24 18 Funds: Military assistance Other Subtotal, trust funds Intragovernmental transactions and other adjustments (deduct) Total 1 $14,195 $14,820 $14,800 11,932 12,220 12,160 15,351 13,275 13,220 7,021 6,400 6,700 920 1,000 1,026 630 660 580 125 110 107 -670 -370 -452 481 6 805 6 976 6 1,139 6 487 811 982 M.145 154 125 14 54,514 52,847 52.546 Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964, $53,762 million; 1965. $52,424 million. Trust funds: 1964. $1,154 million; 1965, $1,052 million. THE FEDERAL PROGRAM BY FUNCTION 69 Partly because of the investments already made and partly because of substantial economies flowing from cost reduction efforts and improved management procedures, expenditures for national defense programs are estimated to continue to decline in 1966. The estimated $52.5 billion of outlays in 1966 will be $0.3 billion less than in 1965, and $2.0 billion lower than in 1964. In addition to the military functions of the Department of Defense, these estimates include outlays for military assistance to our allies, for the Atomic Energy Commission, and for various other activities which directly support the defense effort. Barring a significant change in the threats which face us, it should be possible to maintain the necessary forces, make selective improvements, and conduct a vigorous program of research and development without increasing defense outlays each year. Department of Defense.—-Expenditures of the Department of Defense for military functions are estimated at $47.9 billion in 1966, $200 million less than the current year. New obligational authority of $47.4 billion is proposed for the Department, compared with $48.7 billion for the current year. The 1966 budget provides for further improvements in military strength and the development of new weapons although expenditures are being reduced. This will be possible because: (1) we have largely completed the buildup which was needed to achieve our present high state of readiness; (2) less effective and less economical forces—such as the early missiles and older manned bombers—are being phased out promptly; and (3) the Department's cost reduction program is producing increasing economies. In fiscal year 1964, savings achieved under this program totaled over $2.8 billion, compared with the original goal of $1.5 billion for that year. Further measures this year and in 1966—such as the recently announced consolidation, reduction, or discontinuance of 95 installations—are expected ultimately to raise the rate of annual savings to well over the current goal of $4.8 billion. The following table shows, on a selected basis, the force structure to be supported by this budget: 70 THE BUDGET FOR FISCAL YEAR 1966 SUMMARY OF ACTIVE FORCES Estimated Actual, June 30, 1961 Description Actual, June 30, 1964 June 30, 1965 June 30. 1966 Military personnel (in thousands): Army Navy Marine Corps Air Force 858 627 177 820 972 667 190 856 963 674 190 829 953 685 193 809 Total, Department of Defense 2,482 2,685 2,656 2,640 16 6 17 6 4 5 12 12 13 21 29 38 13 1 20 14 2 10 14 2 5 13H 2 42 7 40 8 26H 39 6 23^ 34 6 11 16 38 16 38 32 Ji 7 16 38 Selected military forces: Strategic retaliatory forces: Intercontinental ballistic missiles (squadrons): Minuteman Titan Atlas Polaris submarines Strategic bombers (wings): B-52 B-58 B-47 Continental air and missile defence forces: Manned fighter interceptor squadrons Interceptor missile squadrons (BOMARC) Army air defense missile battalions A General purpose forces: Army divisions (combat ready) Army surface-to-surface missile battalions Army air defense missile battalions Army special forces groups Warships: Attack carriers Antisubmarine warfare carriers Nuclear attack submarines Other Amphibious assault ships Carrier air groups (attack and ASW) Marine Corps divisions/aircraft wings Air Force tactical forces squadrons Airlift and sealift forces: Airlift aircraft (squadrons): C-130 through C-l 41 C-118 through C-l 24 Troopships, cargo ships, and tankers Active aircraft inventory (all programs): Army Navy _ Air Force Commissioned ships in fleet (all programs) 42^2 __. 15 9 13 328 110 28 3 93 15 9 19 322 15 9 23 329 133 28 3 112 135 28 3 117 9 31 323 140 28 3 119 16 35 99 34 27 99 38 19 99 41 16 99 5,564 8,793 16,905 819 6,338 8,391 15.380 859 6,899 8,250 14.411 7.624 8,241 13,706 899 15 A Decrease reflects phaseout of Nike-Ajax and transfer of Nike-Hercules battalions to Army National Guard. 71 THE FEDERAL PROGRAM BY FUNCTION Total obligational availability for the major military programs is summarized in the following table. Total obligational availability includes new obligational authority granted each year by the Congress, plus the obligational authority granted in prior years which is not required to complete prior year programs. The amounts are shown by major program—a concept, introduced into defense planning in 1961, which involves the grouping of all forces, regardless of military service, according to major military mission. SUMMARY OF THE DEPARTMENT OF DEFENSE BUDGET PROGRAM [Fiscal years. In billions] Total obligational availability Major military programs 1964 actual 1965 1966 Strategic retaliatory forces Continental air and missile defense forces General purpose forces Airlift and sealift forces Reserve forces Research and development (not included elsewhere) General support Retired pay $7.3 2.1 17.7 1.3 2.0 5.3 13.6 1.2 $5.3 1.8 18.1 1.5 2.1 5.1 14.3 1.4 $4.5 1.8 19.0 1.6 2.0 5.4 14.6 1.5 Total obligational availability Of which: New obiigational authority Prior year funds 50.6 49.6 50.5 49.9 .7 48.7 1.0 47.4 3.1 Strategic retaliatory forces.—The basic objective of our strategic retaliatory forces is to deter aggression against the United States and its allies. To achieve this objective, these forces must be sufficient to insure the destruction of any aggressor, even if the United States is forced to absorb an initial surprise attack. In addition, they should be able to limit further damage to this country and its allies by destroying enemy strategic forces remaining after the first strike. The force levels achieved and recommended are designed to fulfill these tasks. The strategic forces now include : • Over 850 operational intercontinental ballistic missiles deployed on launchers, mostly in hardened and dispersed silos. • More than 900 long-range bombers (including over 450 on 15minute alert), many of which are equipped with air-to-surface missiles and penetration aids to help them reach their targets. • Twenty-two Polaris submarines, each able to carry 16 nuclear missiles. In addition, 19 more of these submarines are in commission preparing for initial deployment, or are under construction. 72 THE BUDGET FOR FISCAL YEAR 1966 The 1966 budget will provide for extensive strengthening of these forces. Additional Polaris A-3 missiles and a number of our latest strategic missile, Minuteman II, will become operational in fiscal year 1966, extending the range, accuracy, and striking power of the strategic forces. Moreover, procurement of these missiles to replace older models will continue. The budget also provides for the development of a new submarine-launched ballistic missile, Poseidon, which will have double the payload of the Polaris A-3. An extensive program of modifications to improve the capabilities and extend the life of most of the existing B-52 fleet will be continued. Provision is also made for the development of engines and other subsystems for advanced strategic aircraft and for continued studies on possible future manned bombers. The 1966 budget continues the procurement and deployment of the SR-71—a high-speed, highaltitude intercontinental strategic reconnaissance aircraft which will enter the active forces this year—and provides for development of a completely new short-range, air-to-surface attack missile. Because of the strength which has been achieved and because of the additional Minuteman and Polaris missiles entering the active forces, it is now possible to reduce older, more costly, and vulnerable elements of our strategic forces. As a result: (1) all the Atlas and the older Titan I missiles will be retired this year; (2) the remainder of the B-47 force will be phased out during 1966, as previously scheduled; and (3) two squadrons of the earliest version of the B-52 bomber will be eliminated by the end of fiscal year 1966. Savings from these actions are reflected in the reduction of $0.8 billion in 1966 total obligational availability now estimated for the strategic retaliatory program. Continental air and missile defense forces.—Our strategic defense forces include interceptor aircraft, surface-to-air missiles, and warning and control systems designed to defend against manned bomber or missile attack, and the civil defense program. The major strategic threat to the United States today is a surprise missile attack. The present air defense forces—including interceptors, missiles, radars, and control centers—are designed only to defend against bombers and therefore are becoming less capable of limiting damage from combined missile and bomber attacks. For this reason, we will continue to reduce these forces in 1966, when a number of older National Guard interceptors will be replaced by newer aircraft transferred from the active forces. Also, studies indicate that certain of the present radars in the force can be eliminated without compromising either military air defense or civilian air traffic control. THE FEDERAL PROGRAM BY FUNCTION 73 Although the manned bomber threat is declining, it is always possible that this decline could be reversed. To be prepared for such a contingency, the 1966 budget provides for continued study and test of the improved mach-3 interceptor aircraft which is already flying, as well as other interceptor concepts and for further improvements of ground control systems for our air defense forces. Increased funds are being recommended for 1966 for the Nike-X antimissile system, in order to continue development work on a priority basis. In addition, research will continue on even more advanced components of antimissile defense. The budget also provides for the continued development and installation of over-thehorizon radar warning systems able to detect missiles and aircraft in flight beyond the range of conventional radar, as well as for continued operation and improvement of an antisatellite defense system. The civil defense program is another important element of our total continental defense effort. Its central objective is a nationwide fallout shelter program to reduce significantly the casualties among our population in the event of nuclear attack. In 1966, emphasis will be given to improvements in ventilation techniques in order to increase the number of persons who can be accommodated in shelters. Management assistance to communities for shelter planning and assignment will be continued. The nationwide fallout shelter survey will also continue, and a program to increase the total inventory of shelters through a survey of smaller structures will be started. Procurement of provisions for shelters, training and education programs for emergency preparedness, developmental work on indoor warning systems, and distribution of radiological monitoring devices will continue. The 1966 program also provides for seven protected Federal regional centers from which emergency operations can be directed. Total obligational availability needed in 1966 for continental defense programs is estimated to be $1.8 billion, about the same as in the current year. General purpose forces.—The strengthening of our strategic deterrent forces has been accompanied by a major improvement in the forces needed to cope with the various forms of lesser conflict. Critical deficiencies which previously existed in the ground, sea, and air forces designed for limited war have now been largely eliminated. Provision has been made for increased stocks of weapons, equipment, and ammunition. This buildup now makes it possible to emphasize improvements in the quality and mobility of the general purpose forces. Total obligational availability required for this program in 1966 is estimated to be $19 billion, compared with $18.1 billion in 1965. 74 THE BUDGET FOR FISCAL YEAR 1966 These funds will maintain the 16 active Army divisions and 3 active Marine Corps division-wing teams, plus their supporting elements. Additional modern equipment will be added, including surface-tosurface missiles, combat vehicles, and aircraft. Army testing of experimental air assault concepts will be completed during the current year, and the authorization for the additional 15,000 personnel used in these tests will not be required during 1966. The 1966 Navy general purpose program provides for initiating the procurement of 641 aircraft and 64 new or converted ships. Emphasis will be placed on long-range patrol aircraft, destroyer escorts, and nuclear submarines for antisubmarine warfare. Twenty antisubmarine ships will be constructed or converted, and procurement of the P-3A long-range patrol aircraft and modern torpedoes and sonars will be continued. Fleet amphibious forces will also be improved in 1966 with construction of 15 assault ships and construction of 4 mine warfare vessels and the conversion of 1 other. Eight fleet supply and support ships, 3 guided missile ship conversions, and 12 patrol craft are also included. Carrier forces will be improved by a major conversion and modernization of an older attack carrier. To maintain the present superiority of our modern tactical fighter forces, the 1966 budget provides for further procurement of modern and improved F-4 aircraft for the Air Force and Navy. Development of the F - l l l tactical fighter aircraft will continue and the first large-scale procurement of this aircraft and of the Navy A-7 attack aircraft will be funded in 1966. When the F - l l l is operational in 1967, this versatile, long-range fighter will improve greatly our ability to deploy tactical airpower worldwide. Air Force tactical forces will increase from 112 squadrons at the end of fiscal year 1964 to 119 squadrons in 1966. Protection of these forces will be improved through initiation in 1966 of a program for construction of overseas aircraft shelters. Airlift and sealift forces.—The 1966 budget provides funds for further improvement of the air and sea forces on which the rapid deployment of the Armed Forces depends. Total obligational availability in 1966 is estimated to be $0.1 billion more than in the current year. Provision is made for continued procurement of the C-141 jet transport and for development of the C-5A, an aircraft able to carry large loads very economically and land on relatively short airfields. This plane will have the largest cargo capacity of any aircraft ever built. The significant increases in airlift capability resulting from these new aircraft will permit a reduction, beginning in fiscal year 1966, of the older and less effective airlift aircraft in the active and reserve forces. THE FEDERAL PROGRAM BY FUNCTION 75 To improve further our ability to make speedy and effective response to limited aggression, the budget also provides for construction of four new fast deployment, logistic ships designed for rapid loading and unloading of large amounts of military equipment. These ships, which are not intended for normal cargo carrying duties, will be deployed in forward areas. In addition, funds are provided for modification of 14 more Victory ships to serve as forward floating depots for storage of military equipment near potential trouble spots. Exercises involving the rapid movement of large military forces will be continued in 1966 to develop further the operating techniques needed to take full advantage of increases in mobility. Reserve Forces.—In 1966, total obligational availability required to support the reserve components of the Army, Navy, Marine Corps, and Air Force, is estimated at $0.1 billion less than in 1965. The 1966 request anticipates a major realignment of the Army's reserve components in which all organized units will be placed under the National Guard. Under the realignment, the number of units will be reduced, but all remaining units will be adequately manned. In addition, these units will be provided with their full complement of weapons and equipment. These measures will significantly increase the combat power and readiness of the Army reserve components. The realignment schedule visualizes a reduction in paid drill training strength by the end of 1966 to 575,000—80,000 below that presently estimated for the end of 1965. Ultimately, the paid drill strength of the reorganized National Guard will number 550,000. In the future, the Army Reserve will consist entirely of individuals forming replacement pools or holding specific mobilization assignments. Reduced personnel costs resulting from the realignment will be partially offset by increased procurement of modern weapons and equipment. Research and development.—Most of the Department's research and development effort is included in this program; amounts for development of systems which have already been approved for procurement are included in appropriate mission-oriented programs. Total obligational availability for research and development in 1966 is estimated at $5.4 billion, an increase of $0.3 billion over 1965. Because of the growing number of weapons systems which have passed the full-scale development stage, greater stress is now being placed on improving these systems and on developing advanced components which can be used in the future in a number of different weapons systems such as strategic and tactical aircraft and ballistic missiles. 76 THE BUDGET FOR FISCAL YEAR 1966 Increasing support will be given to: (1) General programs of research to lay the groundwork for future weapons technology; (2) Antisubmarine warfare systems, including new sonars and torpedoes; and (3) A number of tactical weapons, such as the main battle tank being developed jointly with the Federal Republic of Germany, certain counterinsurgency weapons, and a new lightweight anti-tank missile. Other programs supported by the budget include development of night vision devices, an advanced anti-radar missile, undersea vehicles for rescue operations and underwater research, vertical takeoff and landing aircraft engines, and further work on exploration of potential uses of light amplification (Laser) technology. To promote our defense capabilities in space, research on reentry and recovery of spacecraft will be accelerated, outlays for the Titan III space booster will continue at a high level, and development of the initial Defense Communications Satellite System will continue. Funds are also included for moving ahead with the manned orbiting laboratory program. This program will take advantage of experience and equipment developed in the National Aeronautics and Space Administration manned space flight program and will be planned and carried out in close coordination with NASA. General support.—This program includes all elements that are not directly or uniquely related to any of the other programs but which provide essential support to them. Such functions as intelligence, communications, command and control, and support of nuclear weapons programs are included, along with training and education, family housing, medical services, logistic support, and other Department-wide activities. Total obligational availability required for these functions in 1966 is estimated at $14.6 billion, compared with $14.3 billion in 1965. To reduce further the large deficiency in military family housing, the 1966 budget provides for construction of 12,500 housing units, 4,250 more than were approved for 1965. Emphasis is also placed on improving communications. The Department is establishing two major worldwide automatic communications systems which will become the backbone of the newly established National Communications System. They will not only greatly improve emergency communications capabilities but will also yield significant manpower and operating economies over previous methods. Military assistance.—The military assistance program is an essential component of our overall national security effort. It is based on the principle of the collective security of the United States and the rest of the free world. Under this principle, our own security THE FEDERAL PROGRAM BY FUNCTION 77 planning and the structure of our forces continue to be influenced by the contribution of our allies to the collective defense. Nearly three-quarters of the military assistance provided in 1966 will go to 11 countries which form an arc around the southern and eastern flanks of the Sino-Soviet bloc—Greece, Turkey, Iran, Pakistan, India, Thailand, Laos, Vietnam, the Philippines, and the Republics of China and Korea. These nations are not yet able to support fully their own forces, but they maintain 3% million men under arms. By helping them maintain these forces, we reduce greatly our own manpower requirements and costs which we would otherwise have to bear. In Africa and Latin America, our military assistance effort is aimed primarily at equipping and training armed forces to maintain internal security and to perform civic action projects, which provide training but also contribute to economic development. In 1966, military assistance expenditures are estimated to be $100 million less than in the current year, although new obligational authority required for this program will increase by $115 million. National Defense as a Percent of Federal Payments Atomic energy activities.—Expenditures by the Atomic Energy Commission in 1966 are estimated to be $2.5 billion, down $170 million from 1965. The decreases from 1965 will result from such factors as a $55 million reduction in the procurement of uranium concentrates and a lower production level for enriched uranium and plutonium. In addition, fewer construction projects in support of 78 THE BUDGET FOR FISCAL YEAR 1966 research and development programs and less equipment procurement will reduce expenditures by $75 million. These decreases more than offset increases in some research and development programs for the peaceful uses of nuclear energy. Nuclear weapons.—Expenditures for the development and production of nuclear weapons in 1966 will decrease by $19 million from 1965 levels, reflecting the significant quantities of weapons stockpiled in recent years. Achievement in 1965 of the capability to resume atmospheric testing in the event of violation by others of the limited nuclear test ban treaty will make possible a decline of $29 million in test program expenditures in 1966. In a joint Defense-AEC program, work will continue on development and underground testing of nuclear weapons, on maintenance of readiness for atmospheric testing, and on improved detection and identification capabilities. Peaceful uses of nuclear energy.—Expenditures in 1966 for the development of civilian nuclear power are estimated at $214 million, a decrease of $5 million from 1965. Continued emphasis will be given to the development of reactors which produce significantly more fuel than they consume ("high-gain breeders") as the long-range objective for civilian power reactors. To meet shorter term needs, reactors which substantially improve the use of nuclear fuels (advanced converters and 'low-gain breeders") are being developed on a selective basis. Construction of two different types of reactors in this category by non-Federal groups will proceed in 1966 with Atomic Energy Commission assistance; research and development will be pursued on a third type. These increases will be more than offset by reductions elsewhere, including work on other advanced converters and on established types of light-water reactors. Development of nuclear energy uses in space exploration will continue in 1966. The SNAP program to develop compact nuclear electric power units will focus on promising units fueled by radioisotopes and on the technology, fabrication, and testing of reactorpowered units. The Rover program to develop nuclear rockets, being pursued jointly with the National, Aeronautics and Space Administration, will continue to be directed toward ground-based research and engineering. Basic research in the physical and biomedical sciences related to nuclear energy will continue to grow. Highly selective improvements and additions to existing major facilities will be initiated. These additions include construction, at Argonne Laboratory in the Middle West, of the world's largest bubble chamber. This device will enable scientists to observe and analyze the interactions of subatomic particles and thus explore more intensively the ultimate composition of matter. THE FEDERAL PROGRAM BY FUNCTION 79 Work on the peaceful application of nuclear explosives (Project Plowshare) in 1966 will be directed toward the development of suitable nuclear devices, experiments in excavation technology, and the use of nuclear explosives for the production and study of the very heavy elements. Defense-related activities.—Expenditures for the various defenserelated functions of agencies other than the Department of Defense and the Atomic Energy Commission are estimated to decrease by $112 million in 1966. This decrease is primarily attributable to a reduction of over $100 million in interest payments to the Treasury on Defense Production Act loans outstanding. (Miscellaneous receipts of the Treasury will be reduced by a corresponding amount.) Inductions into the Armed Forces handled by the Selective Service System are estimated to increase from 95,000 in 1965 to 125,000 in 1966. The Armed Forces will examine an estimated 1 million volunteers and Selective Service inductees in 1966. In addition, 645,000 18-year-olds will be referred for medical and mental testing under the special Selective Service program initiated last year. Those who fail to meet the minimum standards for admittance into the Army will be referred to local agencies for employment, health, training, and vocational rehabilitation services. INTERNATIONAL AFFAIRS AND FINANCE Through its international activities, the Federal Government remains alert and responsive to developments in a rapidly changing world. In pursuit of the objectives of world peace, stability, and prosperity, the United States participates in international organizations such as the United Nations and the Organization of American States. It increases mutual understanding through worldwide information and exchange activities. It pursues negotiations affecting a wide spectrum of problems—from the reduction of armaments to the liberalization of world trade and commerce. It builds for the future by encouraging economic and social progress in the developing nations, and it helps to avert immediate dangers to peace by providing economic as well as military assistance to threatened countries. New obligational authority of $5.1 billion is requested for international affairs and finance activities for 1966, a decrease of about $1.6 billion from 1965. Administrative budget expenditures for these activities are estimated to be $4.0 billion in 1966, $59 million less than in 1965. Conduct of foreign affairs.—The Department of State has primary responsibility for a wide array of activities required to conduct the Nation's foreign affairs. To fulfill its responsibilities, it must 80 THE BUDGET FOR FISCAL YEAR 1966 INTERNATIONAL AFFAIRS AND FINANCE [Fiscal years. In millions] Program or agency 1964 actual Administrative Budget 1966 estimate Recommended new obligational authority for 1966 Payments to the public 1965 Funds: Conduct of foreign affairs: $279 6 3 9 $296 10 3 37 $306 10 3 2 $318 12 4 2 768 226 272 371 360 862 190 365 370 263 870 205 398 390 237 780 210 580 369 271 1,997 2,050 2,100 2,210 112 60 -702 12 1,704 62 258 80 -645 15 1.661 10 25 105 -480 21 1,661 310 250 125 12 1,658 United States Information Agency Department of State 161 46 164 52 161 59 173 62 Subtotal, administrative budget _ 3,687 4,043 3,984 25,136 62 -106 258 2115 256 301 89 3,492 3,636 4,153 Department of State U.S. Arms Control and Disarmament AgencyTariff Commission Foreign Claims Settlement Commission Economic and financial programs: Agency for International Development: Development loans Technical cooperation Alliance for Progress Supporting assistance Contingencies and other Subtotal, Agency for International Development. International financial institutions: Present programs Proposed legislation... Peace Corps _-Export-Import Bank Other Food for Peace * Foreign information and exchange activities: Trust Funds- Intragovernmental transactions and adjustment for net cash issuances or withdrawals by international financial institutions (deduct) TotaL 1 2 See Genera] Notes, page 4, item 4. Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964, $4,457 million; 1965, $6,759 million. Trust funds: 1964. $57 million; 1965. $32 million. maintain diplomatic and consular posts in 113 countries—31 more than were required 5 years ago. A small number of additional diplomatic and consular posts will be opened in 1966, reflecting the forthcoming independence of new nations and the implementation of a new consular convention with the U.S.S.R. THE FEDERAL PROGRAM BY FUNCTION 81 Workloads will continue to increase in other areas as well. For example, more Americans will be traveling abroad in 1966, resulting in an estimated 1,320,000 applications for passports—a 10% increase over 1965. Travel of foreigners to the United States will also continue to grow. The budget anticipates that 1,365,000 nonimmigrant visas will be issued—14% over 1965. Additional commercial staff will be required to deal with increased workloads, including the promotion of U.S. exports. Improved communications to support the Foreign Service and enhanced security measures at posts abroad are also provided for. In addition, the budget includes funds for the expenses of U.S. membership in the United Nations and other international organizations. Our participation in and support of these bodies are important to our quest for international peace, security, and cooperation. All these activities of the Department of State will require expenditures of $306 million in 1966, $10 million more than in 1965. The United States Arms Control and Disarmament Agency will expand its staff and contract research efforts in 1966 to formulate new U.S. approaches toward controlling and reducing arms and lessening the risk of war, and to support U.S. participation in international disarmament meetings. Agency for International Development.—The Agency for International Development administers and coordinates economic assistance programs in less developed countries where political stability, resistance to aggression, or economic and social progress are important to the foreign policy objectives of the United States. In those countries which are working to achieve economic growth and stability through concentrated self-help and self-discipline, the United States is supplementing local resources with long-term loans and technical and supporting assistance. In 1966, expenditures for all AID activities are estimated to total $2.1 billion, an increase of $50 million over 1965. New obligational authority of $2.2 billion is being requested for 1966, about the same as the 1965 amount. This request covers only the most urgent requirements. It reflects a continuing effort to increase the effectiveness and efficiency of our assistance programs. An increasing proportion—now over 80%—of U.S. commitments for economic assistance programs is directly tied to the purchase of goods and services in the United States. In this way, any adverse effect of our assistance program on the U.S. balance of international payments is minimized. In addition, the long-term growth of U.S. exports is stimulated through the development of new trade patterns and opportunities. 750-000 O—165 6 82 THE BUDGET FOR FISCAL YEAR 1966 Development loans and technical cooperation.—Most expenditures for development assistance are in the form of long-term loans, repayable in dollars. Expenditures for these loans are estimated to total $870 million in 1966, slightly more than in 1965. This total excludes loans under the Alliance for Progress, which is discussed separately. This assistance is concentrated in relatively few developing countries to finance the dollar costs of capital projects and/or critical imports upon which economic growth depends. India, Pakistan, and Turkey are the major recipients. In these and other major countries, U.S. financial help is part of a systematic program of modernization carried out in accordance with a development plan. This help usually represents an agreed-upon U.S. share of the total amount of assistance provided by most of the major industrial countries of the free world. Where comprehensive development plans have not yet been formulated and approved, lending is normally undertaken only for specific projects, each of which is carefully reviewed in terms of its technical soundness and its relative contribution to overall growth. In most countries, dollar loans—to be effective—must be complemented by technical cooperation. The United States meets this need through grants for part of the costs of furnishing U.S. advisers who can bring American experience and technical skills to bear on the various complex problems of economic development. Expenditures for such grants are expected to amount to $205 million in 1966, $15 million more than in 1965. Alliance for Progress.—Through the Alliance for Progress, the United States is working with the Latin American nations in a special effort to achieve the economic and social reforms required to accelerate economic growth. U.S. participation in these efforts involves primarily development loans and technical assistance. This budget includes new obligational authority of $580 million for 1966 for the Alliance for Progress activities of the Agency for International Development; expenditures in 1966 are estimated at $398 million, an increase of $33 million over 1965. Other important Alliance activities will be carried out through the Inter-American Development Bank, the Export-Import Bank, the Food for Peace Program, and the Peace Corps. Other AID programs.—In some cases, the United States provides supporting assistance grants and loans to counter immediate threats to political and economic stability which, in turn, pose danger to free world security. The number of countries in which such financing is necessary has declined sharply in recent years, but there continue to be urgent requirements in the Far East—primarily in Vietnam. Ex- 83 THE FEDERAL PROGRAM BY FUNCTION penditures for supporting assistance are estimated to rise to $390 million in 1966 from $370 million in 1965. The United States makes substantial contributions to programs of international organizations which complement our bilateral aid efforts. These programs range from general development assistance operations, such as those of the United Nations Special Fund, to specific activities, such as the Indus Basin Development program administered by the World Bank. Agency for International Development - Program Trends Percent of Total Goods Financed^ and Purchased in U.S. Private Investment Guarantees Outstanding -eo -to I I I \ i 65 66 1*55 I I S? I 1 I *t I I I I \ 65 66 AID programs for guaranteeing private investment abroad are encouraging increased participation by the American business community in the developing countries. To accelerate this trend, legislation is recommended to increase substantially the authority to extend these guarantees. The value of guarantees outstanding is expected to rise in 1966 to a total of $4 billion, about $1 billion more than in 1965. Other economic and financial programs.—New obligational authority of $456 million is requested for 1966 to strengthen the Alliance for Progress through expansion of the resources and activities of the Inter-American Development Bank. This total includes a request for $206 million in new obligational authority to provide the second and final installment of a $412 million increase in the U.S. subscription of callable capital held in reserve in the U.S. Treasury against Bank borrowing in private capital markets. No expenditure of these funds is contemplated. Under proposed legislation to expand the Bank's long-term lending financed by member governments, new 84 THE BUDGET FOR FISCAL YEAR 1966 obligational authority of $250 million is being requested in both 1965 and 1966; a similar amount will be requested for 1967. New obligational authority of $104 million is requested for 1966 to finance the first installment of the 3-year, $312 million increase in the U.S. subscription to the International Development Association approved during the last session of Congress. This Association is an affiliate of the World Bank, established to make loans on easier terms than regular Bank loans. The member nations of the International Monetary Fund are considering strengthening this institution through an increase in the quotas of all members. • Completion of the discussions involved is expected shortly, and legislation will be promptly recommended to authorize the U.S. share of this increase. The budget includes new obligational authority of $1 billion for 1965 for this purpose. The Export-Import Bank is continuing its efforts to expand U.S. exports. The Bank's successful insurance and guarantee programs—undertaken in cooperation with insurance companies and commercial banks—will protect more than $1.5 billion of U.S. exports against both political and commercial risks by the end of 1966. Direct loans to foreign borrowers are also expected to increase, thereby developing markets for U.S. products and providing U.S. capital equipment for projects around the world. Sales to private buyers of certificates of participation in the Bank's portfolio will contribute to an estimated net excess of Bank receipts over expenditures of $480 million in 1966. The continuing success of the Peace Corps is expected to result in increased demand from foreign nations for the services of volunteers, as well as increased interest from qualified Americans. Peace Corps programs are anticipated in 46 countries in 1966, and the number of volunteers and trainees is expected to rise from 15,000 in 1965 to 17,000 by the end of 1966. This will require an estimated increase of $25 million in expenditures. Food for Peace.—The Agricultural Trade Development and Assistance Act of 1954 (Public Law 480) is the foundation of the Food for Peace program, through which U.S. agricultural surpluses are made available to help feed hungry people and contribute to economic development abroad. About two-thirds of the Food for Peace program consists of sales of commodities to foreign nations for their own currencies. To the extent possible, these currencies are then used in the recipient countries to pay U.S. obligations, to finance loans to U.S. private enterprise, and to support local development projects. Almost all of these currencies are inconvertible, and considerable balances have developed in a number of countries. In an effort to improve our ability to make more effective use of these currencies, a special foreign currency 85 THE FEDERAL PROGRAM BY FUNCTION authorization is proposed permitting the President to use up to 5 % of such currencies in each of those countries in which U.S. balances are in excess of regular U.S. needs. These funds will be used for additional worthwhile purposes serving U.S. national interests, and annual reports will be made to the Congress on these uses. Other aspects of the Food for Peace program provide grants of food abroad and long-term credit sales for dollars. FOOD FOR PEACE EXPENDITURES1 [Fiscal years. Program Sales for foreign currencies Grants for famine relief and other purposes. Long-term credit sales Total, Food for Peace 1 In millions] 1964 1965 1966 $1,415 228 60 $1,247 211 204 $1,140 1,704 1,661 1,661 306 216 See General Notes, page 4, item 4. Expenditures for Food for Peace are estimated at $1,661 million in 1966, the same as in 1965. The total volume of commodities shipped is expected to remain approximately at 1965 levels. The decline in expenditures for the foreign currency sales program reflects in part lower ocean transportation payments. Under legislation passed last year, these payments will cover only additional costs resulting from the use of U.S. vessels. Disposal of commodities abroad through private welfare agencies, as authorized by section 416 of the Agricultural Act of 1949, as amended, is sometimes treated as a part of the Food for Peace effort. Expenditures for this program, which are classified under agriculture and agricultural resources, are estimated at $179 million in 1966. Foreign information and exchange activities.—The Department of State and the United States Information Agency work together to develop improved mutual understanding with other peoples. Expenditures for educational and cultural exchange activities of the Department of State will increase as a result of measures to improve the quality and effectiveness of these activities. Most of the increase in new obligational authority is requested to substitute for a decline in U.S.-owned foreign currencies available for the program. The increase will also provide for travel of dependents of certain American teachers and professors sent abroad and for special services for non-U.S. Government-sponsored foreign students in this country. The United States Information Agency will reallocate its resources in order to improve the quality of its information activities while 86 THE BUDGET FOR FISCAL YEAR 196 6 reducing costs. This will permit reductions in both expenditures and employment in 1966. Under this reallocation, decreases in trade fair exhibitions and the Western European program will permit greater worldwide motion picture and television efforts as well as further buildup in the African program. The 1966 estimate for new obligational authority includes $13 million to complete an important Voice of America radio transmitting facility in the Far East. SPACE RESEARCH AND TECHNOLOGY The principal objectives of the programs of the National Aeronautics and Space Administration are to extend man's knowledge and use of space. The budget provides for a broad-based, balanced program of space activity, utilizing both manned and unmanned flight systems and supported by extensive ground-based research. These activities will not only contribute to the advancement of scientific knowledge and our immediate objectives in space exploration but will also provide the foundation for future progress in space and new technology with civilian and military applications. The largest and most costly single effort in the space program is directed toward the achievement of a manned lunar landing within this decade. This effort serves as a focus for the development of the vehicles, facilities, and experience that will be required for future SPACE RESEARCH AND TECHNOLOGY (Fiscal years. In milli ons] Program 1964 actual Administrative Budget Funds: Manned space flight Scientific investigations in space '__ _ Meteorology, communications, and other space applications Other research, technology, and supporting operations Subtotal, administrative budget Trust Funds Total Recommended new obligational 1966 authority 1965 estimate estimate for 1966 Payments to the public $2,768 641 $3,085 693 $3,386 703 730 650 110 1,012 904 4,171 * 4,900 * 5,100 * 1 5,260 * 4,171 4,900 5,100 1 5,260 112 "Less than one-half million dollars. Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964. $5,100 million; 1965, $5,250 million. 1 $3,588 107 114 828 THE FEDERAL PROGRAM BY FUNCTION 87 space operations. The program also emphasizes scientific experiments and probes by unmanned spacecraft, the advancement of spacecraft technology for meteorology and other applications, and research and development needed to support these space efforts and the Nation's aeronautical activities. New obligational authority of $5.3 billion is recommended for the National Aeronautics and Space Administration for 1966, virtually the same amount as enacted for 1965. In recent years, the very rapid development of our space effort has required large annual increases in appropriations. Through prudent management and the termination of premature or non-essential projects, it is now possible to maintain the momentum of our ongoing programs and to start important new projects without a further significant increase in new obligational authority for 1966. Expenditures for the space program in 1966 are estimated at $5.1 billion, an increase of $200 million over the estimate for 1965. This compares with average annual increases of over $1 billion during the previous 4-year period. The increase in 1966 is mainly for payments for equipment and services contracted for in prior years. Manned space flight.—Manned space flight activities continue to absorb about two-thirds of the budget of the National Aeronautics and Space Administration. The huge Saturn V launch vehicle, the Apollo spacecraft, and supporting programs required for a manned lunar landing will also provide the broad technological capability for engaging in other space activities in the years ahead. Manned flights of the two-man Gemini spacecraft will be conducted during fiscal year 1966 to. provide essential space flight experience and to continue the training of astronauts. The Saturn I rocket has successfully flown seven times in seven attempts. This rocket will be used to boost into orbit large spacecraft to measure the concentration of small meteoroid particles in space. The information gained from these experiments will contribute to the design of the Apollo spacecraft. By the end of fiscal year 1966, the more powerful Saturn IB rockets will have completed initial test flights in preparation for launching the manned Apollo spacecraft on earth orbital flights. Ground tests of all stages of the Saturn V will also be well underway. Funds are provided in 1966 for studies and selected technological developments which will prepare the way for a future decision on possible uses of the Apollo spacecraft and Saturn launch vehicles other than those specifically required for the manned lunar landing. THE BUDGET FOR FISCAL YEAR 1966 Scientific investigations in space.—Funds are included in this budget to initiate development of the Voyager, a major new unmanned spacecraft designed to explore the planet Mars. This spacecraft will be 10 to 15 times as large as the Mariner 4 which is currently in transit to Mars. Its ultimate mission will be to place on the Martian surface an instrument package capable of determining and reporting to earth whether there is life on that planet. This program has been selected for initiation in 1966 because it is considered to be one of the most important scientific missions to be undertaken in space and must be timed for the most favorable flight conditions. It is planned to take advantage of the opportunity that will occur in 1971. Funds are also recommended to continue unmanned investigation of the moon preparatory to manned exploration. These investigations will be conducted by the Surveyor spacecraft, which will land on the moon and relay to earth pictures and measurements of the lunar surface, and the Lunar Orbiter, which will be equipped to transmit clear pictures of the surface from a low orbit around the moon. Scientific investigations and measurements of the space environment near the earth will continue to be made by large geophysical, astronomical, and solar observatory satellites, as well as the smaller and more specialized Explorer satellites and Pioneer space probes. Meteorology', communications, and other space applications.—An additional Tiros spacecraft will be launched in 1966 to experiment with new techniques for making meteorological observations from satellites. Development will continue on experiments involving the larger Nimbus and other satellites. Development of the Applications Technology Satellite will be continued in 1966. This satellite is to be used for experiments related to a variety of space applications—such as communications, meteorology, and space science. Other research, technology, and supporting operations.—The supporting programs on which space operations and long-term improvements in space capabilities depend will continue in 1966. These programs include advanced research and development in space THE FEDERAL PROGRAM BY FUNCTION 89 technology and aeronautics, operation of the NASA worldwide tracking system, and support of college and university programs in the space sciences, including the training of candidates for advanced degrees. AGRICULTURE AND AGRICULTURAL RESOURCES One result of the great strides made in increasing the efficiency of American agriculture has been a progressive reduction in the number of people needed in farming. Today, much more capital, less cropland, and much less labor is required to produce a given output of farm commodities than even a decade ago. The Nation as a whole has benefited greatly from the shift of the manpower no longer needed in agriculture to non-agricultural employment. But the shift of manpower has not kept up with the growth of farm productivity. The difficulty of making the transition to new occupations is reflected in the large number of low-income families in rural areas today. With the help of the Federal Government's farm commodity programs, some of the larger and more efficient farmers are now receiving rates of return for their labor, capital, and management nearly comparable with the rates received in other parts of the economy. But in view of the market outlook for farm commodities at home and abroad, farming alone cannot be expected to provide a decent living in the future for more than about one million farm families, even with continued Government assistance. Many lowincome farm families will have to find other ways of earning a living, or other sources of income to supplement their modest farm earnings, if they are to share more fully in our national prosperity. Recognition of this situation underlies the increased emphasis in this budget on providing better economic opportunities not only for low-income farm families but for all low-income people who live in rural areas. Payments to the public for agricultural programs in 1966 are estimated at $4.1 billion, down $537 million from 1965. The reduction reflects mainly (1) an expected decline in expenditures for the farm income support programs financed by the Commodity Credit Corporation and (2) proposed legislation which will reduce expenditures for the Farmers Home Administration and the Rural Electrification Administration. 90 THE BUDGET FOR FISCAL YEAR 1966 AGRICULTURE AND AGRICULTURAL RESOURCES [Fiscal years. In millions] Program or agency Administrative Budget Payments to the public 1964 1965 1966 $3,175 73 126 38 240 $2,293 32 30 80 242 $1,864 297 87 108 211 103 112 4,144 Recommended new obligational authority for 1966 Funds: Farm income stabilization: Price support, supply, and purchase programs National Wool Act International Wheat Agreement Transfer of commodities to supplemental stockpile Removal of surplus agricultural commodities Conservation reserve and cropland conversion Sugar Act Other Subtotal 144 $2,300 31 28 52 312 160 95 147 3,103 2,716 3,125 342 367 -168 377 -177 459 -345 259 248 111 40 68 100 39 28 75 312 161 95 Financing rural electrification and rural telephones: Present programs Proposed legislation Financing farming and rural housing: Farmers Home Administration: Present programs Proposed legislation Farm Credit Administration: Present programs Proposed legislation -5 -8 -9 Agricultural land and water resources: Soil Conservation Service: Present programs Proposed legislation for user charges Agricultural conservation program payments (including CCCloan) Other 193 209 218 -20 222 -20 213 3 226 6 223 3 120 4 414 493 523 -57 523 -48 5,560 4,477 3,944 Trust Funds (mainly federally sponsored farm credit institutions) 496 615 495 Intragovernmental transactions and other adjustments (deduct) 210 443 326 5,846 4,650 4,113 Research and other agricultural services: Present programs. Proposed legislation for inspection fees Subtotal, administrative budget. Total (not including Food for Peace) 2_ 1 3 Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964, $5,677 million; 1965, $4,966 million. Trust funds: 1964, $28 million; 1965, $31 million. See General Notes, page 4, item 4. 1 4,207 138 THE FEDERAL PROGRAM BY FUNCTION 91 Improving rural economic opportunities.—The new programs being undertaken through the Office of Economic Opportunity will benefit the rural economy and rural areas. As an additional important step in improving rural living conditions, legislation is being proposed to authorize an insured rural housing loan program for 1966 which will provide up to $350 million in insured loans. This program will promote more and better housing for people in rural areas at a cost within their means. To increase the effectiveness of Federal programs to combat rural poverty, the budget recommends additional funds in 1966 to permit the Rural Community Development Service (formerly the Offic^ of Rural Areas Development) to establish small offices in 20 additional States. These offices will enable the Department of Agriculture to provide information to other Federal agencies and to serve as a focal point for information and advice to local communities. The budget also provides for additional personnel in the Extension Service to participate in this program. These expanded services will supplement those of other Federal agencies. Farm income stabilization.—Expenditures in 1966 for farm income stabilization, estimated at $2.7 billion, are $387 million less than in the fiscal year 1965. The principal decreases result from (1) a change in the timing of feed grain acreage diversion payments; (2) reduced price support loan levels for feed grains, cotton, and rice; and (3) an expected lower volume of tobacco production. These decreases are offset in part by an estimated larger production of feed grains and soybeans in the 1965 crop year. The budget reflects a supplemental appropriation of $1,181 million for the fiscal year 1965 to assure that the Commodity Credit Corporation will have sufficient funds to meet its statutory obligations under the price support programs. The legislation on which the current wheat, feed grains, and cotton programs are based expires in 1965, and the National Wool Act expires early in 1966. These programs should be continued and improved. The Secretary of Agriculture will conduct a comprehensive review of farm policies in an effort to design programs that will continue the national benefit from our present highly efficient commercial agriculture, bolster farm income, put less burden on the Federal budget, and direct more of our effort to the problems of low-income farmers. Financing rural electrification and rural telephones.—-New obligational authority is included in the budget to permit the Rural Electrification Administration to make loan commitments of $300 92 THE BUDGET FOR FISCAL YEAR 1966 million in 1966 for the electrification program and $97 million for the telephone program. In addition, a contingency reserve of $65 million is proposed to be made available, if needed, for the electrification and telephone loan programs. It is expected that the Rural Electrification Administration will put additional emphasis on the negotiation of reasonable contracts under which REA-financed systems purchase power from other suppliers. Such contracts will reduce the need for generation and transmission loans. The reduced new obligational authority recommended for the electrification and telephone programs in 1966 assumes early. Enactment of proposed legislation to authorize use of collections on outstanding electrification and telephone loans to help finance new loans, with continued control through the regular appropriations process. Under this legislation, estimated collections of $168 million in 1965 and $177 million in 1966 will be available to help finance the 1966 loan programs, thereby reducing the amount of new obligational authority required. Financing farming and rural housing.—Through the Farmers Home Administration, both direct Federal loans and insured private loans are provided to meet special credit needs associated with farming, rural housing, rural water facilities, and other related rural problems. The volume of direct and insured loans will be substantially larger in 1966 than in 1965. However, a reduction of $97 million from the 1965 level of expenditures for these programs is estimated for 1966, reflecting mainly proposed legislation under which insured private credit will replace most of the direct Federal loans for the rural housing and farm ownership programs. Provision is also made in the budget for an expansion of the soil and water loan program to a level of $80 million in 1966, including direct and insured loans. In line with efforts to improve economic and other opportunities of low-income families, greater emphasis within the existing loan programs is being placed on providing credit and advisory services for low-income people in rural areas. A grant program to help provide rental housing for domestic farm labor was authorized late in the last session of Congress, and expenditures of $5 million are estimated in 1966. Agricultural land and water resources.—New obligational authority recommended for the upstream watershed protection program will permit starting construction on 70 new projects in 1966. Total expenditures for this program, including continuing work on THE FEDERAL PROGRAM BY FUNCTION 93 projects underway, are estimated at $71 million in 1966 compared with $65 million in 1965. Expenditures in 1966 under the agricultural conservation program are based on the $220 million authorization enacted by the Congress for the 1965 program year. New obligational authority of $120 million is proposed for the 1966 program year. This amount will be adequate to permit the Government to share with farmers the costs of a substantial number of needed conservation practices that will have minimal stimulating effects on the output of farm commodities. The Soil Conservation Service provides technical assistance to aid farmers in installing conservation practices on their farms. Legislation is being proposed to finance part of the cost of certain of these services by a user charge, with collections of $20 million estimated for 1966. The budget also includes funds for planning and technical assistance in 10 additional resource conservation and development pilot project areas. These projects are designed to conserve the resource base in rural areas and to improve overall resource use. Research and other agricultural services.—Expenditures in 1966 for research and other agricultural services are estimated at $466 million, down $27 million from 1965. In order to maintain the vitality of the cooperative Federal and State system of agricultural research, the budget provides for the construction of new laboratories and supporting help to enable Federal and State scientists to deal with such environmental problems as pesticides, toxic molds, and radioactive fallout. Funds are also provided to get underway the meat animal research center at Clay Center, Nebr., and for construction of the National Agricultural Library building at Beltsville, Md. To increase the effectiveness of the research program, direct research at 15 locations will be discontinued, and grants for university research will be increased. In addition, certain phases of agricultural research will be discontinued at other locations. Continued increases in the production of meat and poultry products will result in heavier inspection workloads. The number of establishments in which Federal meat inspection is performed is expected to rise from 1,760 in 1965 to 1,842 in 1966. Since Federal inspection of meat and poultry adds to the market value of these commodities, the cost of the inspection should be treated as an element in the cost of processing them rather than a general charge on taxpayers. Legislation is therefore being proposed to finance directly the full cost of meat and poultry inspection activities and certain other inspection and grading activities through a system of user charges. Collections from these charges are estimated at $57 million in 1966. 94 THE BUDGET FOR FISCAL YEAR 1966 NATURAL RESOURCES The 1966 budget provides for continued development and use of the Nation's abundant natural resources. Investments made will both strengthen and expand our resources base and thus will contribute directly to economic growth. Federal resource programs are coordinated with and complement developmental efforts by a wide range of State, local, and private interests. Payments to the public in 1966 for the conservation and development of natural resources are estimated at $2.9 billion, about the same as estimated for 1965. Increased expenditures for water resources projects and for land acquisition and development of recreational areas are expected to be offset by various reductions, and by proposed legislation to revise the method of financing the activities of the power marketing agencies of the Department of the Interior. Savings in operating and personnel costs will be effected in 1966 by the Department of the Interior through closing of some facilities and consolidation of others and through discontinuing some less urgent activities. Land and water resources.—About two-thirds of the total payments for natural resources programs in 1966 will be for the construction, maintenance, and operation of water resources projects which provide navigation, flood control, irrigation, water supply, and related power benefits, as well as recreational facilities. As our water needs change, our water and related land resource programs must be adapted to meet these changes. To this end, our water resource programs will be carefully reviewed to assure that Federal programs make their maximum contribution to the rapid growth in urban, industrial, and recreational water requirements. The budget includes $37 million of new obligational authority for the Corps of Engineers to start construction on 37 new projects with an estimated total Federal cost of $777 million. Additional funds are included to begin advance planning on 19 projects to be constructed in later years and to make economic restudies of 7 other projects. New obligational authority recommended for the Bureau of Keclamation provides for 5 new project starts with an estimated total Federal cost of $103 million and new loans to irrigation districts for starting 4 small reclamation projects. The Bureau will also begin advance planning on 3 projects to be constructed in later years. The recommendations for the Corps of Engineers will advance development on 21 river basin projects which are subject to monetary authorization ceilings. If orderly development is to be realized, it will be necessary for the Congress to increase the authorization ceilings for 10 of these projects. The budget assumes prompt action to provide the needed increases. 95 THE FEDERAL PROGRAM BY FUNCTION NATURAL RESOURCES [Fiscal years. In millions] Program or agency Administrative Budget Payments to the public Recommended new obligational authority for 1966 1964 actual 1965 1966 $1,093 $1,200 $1,245 $1,281 339 335 319 314 56 62 100 -124 6 Funds: Land and water resources: Corps of Engineers Department of the Interior: Bureau of Reclamation Power marketing agencies: Present programs Proposed legislation Office of Water Resources Research Office of Saline Water Bureau of Indian Affairs Bureau of Land Management and other Tennessee Valley Authority Federal Power Commission International Boundary and Water Commission and other Subtotal 126 20 119 59 39 14 -91 6 29 137 63 59 14 27 40 18 1,747 1,885 1,837 1.956 317 15 361 22 340 19 356 19 2 128 105 13 132 121 59 127 114 128 121 118 47 45 73 52 57 92 53 58 84 53 58 86 2,478 2,735 2,691 12,896 66 71 68 69 104 71 81 76 137 137 175 M57 9 110 57 59 12 4 12 115 60 57 13 Forest resources: Forest Service Bureau of Land Management Recreational resources: Bureau of Outdoor Recreation National Park Service and other Fish and wildlife resources Mineral resources: Bureau of Land Management Bureau of Mines and other General resource surveys and administration. Subtotal, administrative budget Trust Funds: Indian tribal funds. Other Subtotal, trust funds. Intragovernmental transactions and other adjustments (deduct) -. Total. 1 20 2,595 Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964, $2,546 million; 1965, $2,839 million. Trust funds: 1964. $168 million; 1965, $169 million. 96 THE BUDGET FOR FISCAL YEAR 1966 The Tennessee Valley Authority will use corporate funds to begin construction in 1966 of a $150 million steam-power unit with an estimated generating capacity of 1,130,000 kilowatts. First-year expenditures are estimated at $26 million. Appropriations are recommended for the TVA to start the Tellico multiple-purpose project estimated to cost $42.5 million, as well as 2 small flood control projects and a navigation project costing $5 million in total. Expenditures on these 4 projects are estimated at $8 million in 1966. The 1966 budget includes $53 million in new obligational authority to continue construction of the Federal segment of the Pacific Northwest-Southwest Intertie. This Intertie—the largest electrical transmission system ever undertaken in this country—will benefit 11 Western States. The transmission lines will tie together electric systems—public and private—from Vancouver, B.C., and Seattle to Los Angeles and Phoenix. The Intertie is estimated to cost $700 million, of which the Federal share will be nearly $296 million. Benefits of $2.6 billion will be realized over a 50-year period. Revenues from the sale of power by the Bonneville, Southeastern, and Southwestern Power Administrations are currently deposited in miscellaneous receipts of the Treasury. Legislation is recommended to allow these revenues to be used by these agencies to finance capital outlays and operating costs, under control through the regular appropriations process, on a basis consistent with other business enterprise activities of the Federal Government. The budget reflects this proposed change for 1966. Through its wholesale electric rate regulation program, the Federal Power Commission will assure that economies anticipated by the National Power Survey will result in reduced rates to wholesale customers. The demand for water is increasing steadily throughout the country. While the overall national supply of water is abundant, shortages in some sections of the country tend to restrict economic development. To help relieve these shortages, the Department of the Interior, through the Office of Saline Water, is making a major effort to advance the technology of desalting water. The budget, therefore, includes a supplemental appropriation of $4 million for 1965 and a further appropriation of $29 million for 1966 to expand work leading to the development of desalting technology applicable to a wide range of water supply problems. The Interior Department's desalting program is being coordinated with the programs of the Atomic Energy Commission to develop advanced nuclear reactors which show promise for combined desalting and electric power applications. The benefits of American desalting technology will be shared with nations throughout the world. THE FEDERAL PROGRAM BY FUNCTION 97 Legislation is being proposed to authorize river basin planning commissions and grants to States for planning the best use of water resources. Under the Water Resources Research Act of 1964, Federal grants will be made to establish water resources research centers in State colleges or universities; additional grants will be available on a matching basis to support research at these centers. A supplemental appropriation was provided in fiscal year 1965 to enable the Office of Water Resources Research to start these activities; a further supplemental of $2.8 million is proposed for 1965 and $6 million is recommended for the program in 1966. The budget includes funds to enable the Bureau of Land Management to administer and develop the 175 million acres of public domain lands in the Western States and the 289 million acres in Alaska— mostly for grazing, forestry, and mineral leasing—and to administer the mineral leasing program on the submerged lands of the Outer Continental Shelf. Annual revenues from the public domain lands, estimated at $139 million in 1966, are shared with the States and counties. Payments to States and counties, estimated at $73 million, are included as expenditures under forest and mineral resource activities. Indian affairs.—-Bureau of Indian Affairs programs are aimed at raising the economic and social levels of 380,000 American Indians. Primary emphasis continues to be given to education, which accounts for two-thirds of Indian program expenditures. In 1966, there will be 4,500 more Indian children attending Federal schools in areas where local public schools are not available. New school facilities estimated to cost $57 million are proposed to meet the increase in school-age population and to replace old facilities in hazardous condition. Expanded industrial development and vocational training programs are creating jobs at an increasing rate and helping Indians to learn the skills necessary for employment. Twenty-five plants established in 1964, when fully operating, will employ more than 1,500 Indians. Funds included in the 1966 budget will provide vocational training for 5,400 Indians. To provide the funds necessary to expand industrial and tribal enterprise activities, legislation is being proposed to authorize Federal guarantees of loans to Indians by private lenders and to increase the authorization for the existing direct loan program. Forest resources.—During 1966/the Forest Service will manage 186 million acres of forest and grasslands. In addition to timber resources, the national forest lands provide recreational, range, and wildlife resources and watershed benefits. In 1966, the Forest Service will construct 1,865 miles of general purpose and recreation roads and timber access roads, as compared with 1,524 miles built in 750-000 0—65 7 98 THE BUDGET FOR FISCAL YEAR 1966 1964. This will permit an estimated 11.4 billion board feet of lumber to be harvested in 1966. Two additional research facilities are recommended for 1966, one for work on insect and disease control and the other for forest products and engineering research. Visitors to Federal Recreation Areas Recreational resources.—The 1966 budget for the National Park Service is the last to be submitted under Mission 66—the 10-year development program initiated in 1957. During this period, visits to park areas have doubled. Funds are recommended to initiate developments in new park areas recently authorized and to improve the operation of areas already established. The Bureau of Outdoor Recreation serves as a focal point in the Federal Government for promoting coordination of the many recreational activities at Federal reservoirs, wildlife refuges, national forests, public domain lands, and national park areas and maintains liaison with State and local governments and private interests. Last year, the Congress enacted legislation to establish a Land and Water Conservation Fund which is administered by this Bureau. Expenditures of this fund, financed in part from admission and user fees at Federal recreation areas, are estimated at $10 million in 1965 and $56 million in 1566. The Department of the Interior plans to provide not more than 40% of State costs for planning, acquisition, and development of recreational resources. The Fund will also be used for THE FEDERAL PROGRAM BY FUNCTION 99 Federal acquisition of recreation areas. This legislation and the Wilderness Act of 1964, which established the National Wilderness Preservation System, are major steps in meeting outdoor recreation needs and preserving the natural environment. Fish and wildlife resources.—In 1966, the Bureau of Commercial Fisheries will expand the fishing vessel construction assistance program to modernize U.S. fishing fleets, undertake a new program of Federal grants for support of State commercial fishery research and development projects approved by the Secretary of the Interior, and continue activities supporting the national oceanographic research efforts. The Bureau of Sport Fisheries and Wildlife will operate 88 Federal fish hatcheries. Wildlife management activities will be carried out at 315 refuges, including 8 new waterfowl areas; $2 million is provided in 1966 for construction of improvements at 19 refuge areas, and $12.5 million is provided for acquisition of new waterfowl areas. Mineral resources.—The Bureau of Mines will continue in 1966 cooperative research work with the Public Health Service to reduce the air and water pollution resulting from mining and mineral processing wastes and the combustion of organic fuels. Research will be started to see whether castoff automobiles, a growing blemish on the Nation's landscape, can economically supplement the metals supply. Efforts to develop economical methods for extraction of oil from oil shale will be expanded, looking toward development of the Nation's vast oil shale reserves. Future generations of Americans should not be deprived of the use of valuable helium resources because of wasteful practices now. Appropriation language is recommended to permit the Secretary of the Interior, as authorized in the Helium Act Amendments of 1960, to enter into additional long-term contracts to purchase helium, not to exceed $12.5 million annually. This will raise the annual level of purchases to $60 million and will ultimately increase the conservation of helium by about one-fifth. COMMERCE AND TRANSPORTATION The Federal Government provides a broad range of technical and financial aids to help meet the problems of specific types of businesses, to stimulate the development of particular geographical areas, and to improve major nationwide transportation and communication facilities. The Federal Government also endeavors to promote both the public and private interest by helping to maintain effective competition and by regulating certain key industries. 100 THE BUDGET FOR FISCAL YEAR 1966 COMMERCE AND TRANSPORTATION [Fiscal years. In millions] Program or agency Payments to the public 1964 actual 1965 1966 Recommended new obligational authority for 1966 Administrative Budget Funds: Advancement of business: Department of Commerce: Weather Bureau National Bureau of Standards Other aids to business: Present programs Proposed legislation for surface transport research. Small Business Administration: Present programs Proposed legislation for pool participation sales Alaska Railroad ._ 49 $93 61 $102 58 $117 39 129 142 141 10 128 20 133 243 2 17 155 -350 7 157 -137 3 69 85 75 400 332 300 40 145 751 84 781 87 750 84 729 84 306 350 2 39 331 371 4 43 326 397 6 347 458 8 40 Present programs. Proposed legislation 578 718 Regulation of business 91 96 3,002 3,372 3,645 20 4,101 Area redevelopment: Department of Commerce: Present programs Proposed legislation Public works acceleration program Aviation: Federal Aviation Agency . Civil Aeronautics Board—subsidies___ Water transportation: Department of Commerce Coast Guard Interoceanic Canal Commission and other Highways (mainly on national forests and public lands).. 42 Postal service: Subtotal, administrative budget. Trust 766 92 102 101 2,804 13,354 3,875 27 3,930 39 Funds: Department of Commerce: Highway trust fund Other Federal Deposit Insurance Corporation. Subtotal, trust funds Intragovernmental transactions and other adjustments (deduct) Total. 1 696 -183 25 -194 3,482 3,932 3,690 -62 -58 -56 6,545 7,362 6,549 Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964, $2,989 million; 1965, $2,988 million. Trust funds: 1964. $3,733 million; 1965. $3,847 million. -212 i 3,969 THE FEDERAL PROGRAM BY FUNCTION 101 In 1966, payments to the public for commerce and transportation programs will total an estimated $6.5 billion, a decrease of $813 million from 1965. Well over half of these payments represent trust fund expenditures for Federal-aid highways financed primarily from highway user taxes. Administrative budget expenditures of $2.8 billion for these programs will be an estimated $568 million less in 1966 than in the current fiscal year. This reduction reflects primarily (1) a sharp decline in expenditures for the temporary accelerated public works program initiated in fiscal year 1963 and (2) proposed legislation to increase private financing through sale of participations in a pool of Small Business Administration loans. Advancement of business.—The responsibilities of the Department of Commerce for assisting business enterprise include mainly aids to civilian research and technology; weather, census, and economic information; and export promotion. Expenditures for these programs are expected to increase by $15 million over 1965 levels. Scientific and technical information developed through the activities of Federal agencies is making major contributions to the progress of American industry. To increase the availability and usefulness of such information, the recommended 1966 budget for the National Bureau of Standards provides additional funds for (1) the National Standard Reference Data System for evaluating scientific data and (2) the Federal clearinghouse for distributing technical documents resulting from Government research and development. A computer standards unit is also being established to bring about greater standardization in the field of automatic data processing. Legislation will be proposed to authorize matching grants to States establishing technical centers for the dissemination of information in order to encourage more effective application of science and technology by businesses locally. In spite of these increases, expenditures for the Bureau of Standards are estimated to decline by $3 million in 1966 as construction of a large new laboratory complex in Gaithersburg, Md., nears completion. New obligational authority requested for the Weather Bureau in 1966 is $29 million greater and estimated expenditures $9 million more than in 1965, primarily to carry forward meteorological satellite operations. During 1966, it is anticipated that reports of cloud conditions over the entire globe will be obtained twice daily from the Tiros-type spacecraft and used in a variety of weather advisory and forecasting services. The 1966 budget provides for the Patent Office to begin the installation of a fully automated system for microfilming, storing, and retrieving patents; over 3.1 million are now on file, and new patents 102 THE BUDGET FOR FISCAL YEAR 1966 Commerce a n d Transportation - Program Trends Postal Volume \ i i i i i i i Patents i i i i i i i i i i i i i i i i i j i i i i l | i i r» ; Total Landings and Takeoffs Controlled i ] i ::; | : I I : j , -# i : *, 'i^ ^§M§fy^M f^^^^-y* I I -• are issued at the rate of 50,000 per year. This microfilm system will speed the filling of orders from industry and inventors, now running about 25,000 per day, and will permit greater use of this important technical information resource. Expenditures of the Census Bureau will decline by $6 million to $33 million in 1966. Automation programs have made it possible to complete the 1963 economic census without the additional $2 million appropriation in 1966 previously planned. Other savings in the cost of taking the 1970 decennial census are being sought in the pilot preparations now underway. Exports of American goods have increased by 20% over the past 2 years. Continued rapid expansion is essential to the further improvement of the international balance of payments position of the United States. The 1966 budget provides for the Department of Commerce to increase its efforts to foster further export expansion and to encourage more overseas travelers to visit this country. THE FEDERAL PROGRAM BY FUNCTION 103 Surface transport.—The Department of Commerce is making progress on a comprehensive analysis of transportation problems in the Northeast Corridor of the United States. Legislation will be proposed to authorize demonstrations of improved intercity rail passenger transport and to advance and evaluate the technology of high-speed surface transport. Small business.—The Small Business Administration will improve its financial and other assistance to small businesses in fiscal year 1966. At the same time, measures encouraging increased financing from private sources, including federally licensed small business investment companies, will make it possible to meet the needs of small businesses with some reduction in Federal outlays for this purpose. Legislation is proposed to authorize sale of an estimated $350 million of participations in a pool of federally owned loans. Moreover, most of the estimated $85 million of disaster loans to assist businesses and homeowners suffering damage from the 1964 Alaskan earthquake will be disbursed in 1965. These factors will result in an estimated excess of receipts over expenditures in 1966 of $195 million, in sharp contrast to the $243 million in net expenditures estimated for 1965. Although total new commitments involving Federal funds are not expected to increase in 1966, certain small business loan programs will be expanded substantially. These include loans to small businesses under the Economic Opportunity Act of 1964, up $10 million; loans to local development companies, up $10 million; and loans to small businesses displaced by federally aided construction, up $5 million. Area redevelopment.—The Area Redevelopment Act, under which Federal loans, grants, and other aids are provided to help depressed areas build a solid economic base, expires on June 30, 1965. Legislation is being proposed to extend and strengthen the Act. Under the proposed new authority, Federal resources and efforts would be concentrated more heavily in areas of greatest need, as measured by unemployment and family income. Special incentives would be provided to multi-county development regions which include areas especially suited to serve as centers for broader economic development. More liberal grants and substantial increases in funds would be made available for those public facilities most essential for economic development. In addition, a special fund would help local communities meet part of their share of the cost of projects undertaken under other Federal grant-in-aid programs. Federal guarantees of working capital loans would be authorized for eligible industrial projects. 104 THE BUDGET FOR FISCAL YEAR 1966 Aviation.—Over the past several years, major improvements have been made in the safety and efficiency of the Federal airways system. In 1966, the Federal Aviation Agency will begin installing new electronic equipment that will automatically report the altitude and identity of aircraft to air traffic controllers. Funds provided in the 1966 budget will help to assure further improvements. At the same time, a vigorous program is continuing to eliminate or cut back marginal services and increase employee productivity. Largely as a result of these efforts, the $729 million appropriation recommended for the Federal Aviation Agency for 1966 is slightly less than the amount provided in 1965, even though more traffic will be handled and a higher quality of service provided. Expenditures are estimated to be reduced from $781 million in 1965 to $750 million in 1966. The program of grants-in-aid for airport construction has been critically re-examined in the light of the general policy to curtail or eliminate programs which no longer meet urgent national needs. From this review, it appears that Federal assistance for airport construction—which has totaled about $3 billion since 1933—should henceforth be concentrated mainly at airports which serve a significant volume of commercial air traffic. Accordingly, in this budget, appropriations of $62.5 million are recommended for such grants in 1967, a reduction of $12.5 million from the amount already appropriated for 1966. Intensive analyses of the feasibility, costs, and other problems associated with the development and operation of a civil supersonic transport aircraft are nearing completion. As soon as possible, recommendations will be made to the Congress on what our next steps should be. The policy of paying Federal subsidies to support passenger helicopter operations has been critically evaluated, and it appears undesirable, as a matter of national public interest, to continue this program. Recommended new appropriations in 1966 for the Civil Aeronautics Board contemplate the termination of the subsidy for these operations effective December 31, 1965. Water transportation.—For 1966, new obligational authority requested for Department of Commerce programs to assist ocean shipping totals $347 million. This is $6 million less than the new THE FEDERAL PROGRAM BY FUNCTION" 105 obligational authority for 1965, primarily because of lower operating subsidies. Major steps are being taken to concentrate Federal aids to the maritime industry on those most essential to the national interest. Construction subsidies will be provided for 16 new ships as part of the program to replace obsolete vessels in the subsidized fleet. Equipment will be automated on these vessels and on 26 recently completed ships that are already in operation. Efforts will be made to introduce the NS Savannah, the world's first nuclear-powered merchant vessel, into regular commercial operations. An increase of $41 million in new obligational authority is requested for 1966 for the Coast Guard, mainly to continue the program for replacement of overage and obsolete vessels and facilities. The estimated increase of $26 million in expenditures is also largely for the same purpose. This replacement program is vital for efficient performance of the Coast Guard's important missions of promoting commerce and safety on our inland waterways and on the sea. The budget includes an appropriation of $7.5 million for the Interoceanic Canal Commission. This Commission was authorized by legislation last fall to undertake a 4-year study of the feasibility of a sea level canal between the Atlantic and Pacific Oceans, including the most suitable site and the methods and probable costs of constructing it. Highways.—Outlays in 1966 for the Federal-aid highway program, financed primarily from the highway trust fund, are expected to be about $3.9 billion. These outlays are made primarily to meet the Federal share of the cost of the Interstate Highway System. The estimated total cost of this system has recently been revised by the Secretary of Commerce. The cost is now expected to be $46.8 billion, $5.8 billion more than the previous estimate. This increase reflects recent additions to the system, increases in right-of-way costs, changes in design standards, and higher construction costs. In order to continue the pay-as-you-build policy for financing Federal-aid highways with minimum disruption to the construction schedule, adjustments in the financing pattern will be recommended. These include increased highway user taxes and an extension of such taxes beyond October 1, 1972, the present expiration date. These 106 THE BUDGET FOR FISCAL YEAR 19 66 recommendations will permit orderly completion of the Interstate System with a minimum extension of the construction schedule. Trust fund expenditures to help finance construction of primary and secondary highways will continue to rise gradually to a level of $1 billion annually. Legislation will be proposed during 1965 requiring the use of at least one-third of the secondary road funds by the States for improving access to recreational areas, rerouting of Federal-aid highways and roads for scenic purposes, and increasing attention to esthetic' considerations in highway design and development. The provision in the existing law which permits up to 3 % of all Federal-aid highway funds to be used without matching for the preservation of natural beauty would be amended to provide the Secretary of Commerce with authority to require the use of these funds for this purpose. A mandatory program to control advertising and auto junkyards along new highways will be proposed to replace the voluntary outdoor advertising control law, which expires June 30, 1965. Administrative action will also be taken to increase use of the existing authority to finance roadside and landscape developments from highway funds. Postal service.—Expenditures of the postal service in 1966 are estimated to exceed postal revenues by $714 million. This compares with $578 million in 1964 and an estimated $718 million in 1965. The increases over 1964 reflect primarily the cost of pay increases totaling $270 million a year. These are offset in part by substantial operating economies. The 1966 postal deficit, the amount by which postal revenues fail to cover postal costs after making an allowance for public service costs, is estimated at $234 million. Possible actions to reduce this deficit through increases in certain postal rates will be studied by a panel of distinguished citizens. Legislation will be proposed to undertake a program for direct Federal construction of major postal facilities. This program will replace the present practice of leasing new postal facilities whenever direct construction would contribute to long-run economy. Employment in the postal service is estimated to increase in 1966 by 20,500. Of this amount, 15,000 employees are required as a first step in a 2-year program to reduce the excessive amount of overtime work, which rose to the equivalent of over 25,000 man-years in 1964. Increases in workload, greater than can be handled by improvements in efficiency, account for the remainder of the increased employment. Substantial progress is being made in improving the efficiency of the postal service. The excellent cooperation of the public, particu- THE FEDERAL PROGRAM BY FUNCTION 107 larly large mailers, in adopting the ZIP code program has enabled post offices to initiate a simplified and less costly sorting of mail. The 566 sectional centers—large post offices designated as focal points for the receipt and dispatch of mail—-are expected to be in full operation in 1966. These centers, which are part of the pattern for ZIP code sorting of mail, contribute to economy and improved postal service by providing more direct dispatch and fewer handlings of mail. The development of an electronic reading device which will identify ZIP code numbers for a computer-controlled sorting machine is proceeding on schedule, and this device should be ready for use by 1967. HOUSING AND COMMUNITY DEVELOPMENT Federal housing and community development programs will continue to be directed toward the goal, set by the Housing Act of 1949, of "a decent home and a suitable living environment for every American family." In 1966, these programs will emphasize strengthened attacks on the decay in the center and the wasteful sprawl at the edges of our growing urban areas. New financial aids will be proposed (1) for helping to improve housing for those of moderate income, (2) for providing neighborhood facilities required to improve services in central cities, and (3) for land development and basic public facilities in the outlying areas consistent with areawide urban planning. To assure adequate leadership for this strengthened attack, legislation will be proposed to create a Department of Housing and Urban Development. Details on these proposals will be transmitted to the Congress in a special message. As in the past, the Federal Government will continue its efforts to stimulate investment in housing and community development by private individuals, nonprofit groups, and local communities. In doing so, Federal programs will continue to rely primarily on matching grants and insurance of private credit. In addition, mortgages will continue to be purchased where necessary on a temporary basis to demonstrate their suitability for private investment or to supplement private sources of funds for specific types of investments. The success of this approach in the past is demonstrated by the fact that many of the mortgages and loans acquired in previous years can now be sold to private investors. Receipts from such sales and from fees, premiums, and other sources will continue in 1966 to offset to a large extent the rising disbursements for urban renewal, 108 THE BUDGET FOR FISCAL YEAR 1966 HOUSING A N D COMMUNITY DEVELOPMENT [Fiscal years. In millions] Program or agency Recommended new obligational authority 1966 estimate for 1966 Payments to the public 1964 1965 Administrative Budget Funds: Urban renewal and community facilities: Housing and Home Finance Agency: Urban renewal Urban mass transportation Public facility loans Proposed legislation for public facility grants Other Public housing programs Aids to private housing: Housing and Home Finance Agency: Federal Housing Administration Federal National Mortgage Association: Special assistance functions Management and liquidating programs Secondary market loans and stock repurchase Housing for the elderly—direct loans Urban renewal rehabilitation loans Other Federal Savings and Loan Insurance Corporation Other $230 5 44 $310 16 41 27 149 39 221 $356 48 43 15 47 236 -43 -109 -127 -142 -138 -66 29 -166 -312 14 -248 * -531 -50 -42 45 1 14 -313 * 57 2 76 2 103 5 99 12 -80 -280 10 1822 -37 355 178 455 150 * 162 458 1,572 * 48 432 -250 3 1,889 233 783 620 103 32 149 -17 186 -46 1,674 -178 652 49 25 18 -336 6 $161 150 93 248 42 19 National Capital Region: District of Columbia National Capital Transportation Agency and other Subtotal, administrative budget Trust Funds: Federal National Mortgage Association, secondary market operations, net District of Columbia municipal government Federal home loan banks, net Other Subtotal, trust funds_ Intragovernmental transactions and other adjustments (deduct): District of Columbia Other Total. *1 Less than one-half million dollars Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964, $653 million; 1965, $2,071 million. Trust funds: 1964, $430 million; 1965. $500 million. THE FEDERAL PROGRAM BY FUNCTION 109 mass transportation, public housing, and other programs which cannot be fully financed without Federal contributions. However, total sales of mortgages are expected to decline from the high level in 1965. As a result, instead of the net receipts of $280 million now estimated in the administrative budget for housing and community development in 1965, expenditures will slightly exceed receipts in 1966. Including trust fund outlays, net payments to the public for these programs are expected to be $652 million in 1966. Urban renewal and community facilities.—Legislation will be proposed for prompt authorization of an additional $675 million for urban renewal capital grants. Together with the authority provided in the Housing Act of 1964, this will allow reservation of funds for local projects to be made at the $700 million level recommended last year. In addition, for projects approved in prior years, it will provide the funds required for increased payments to displaced families, elderly individuals, and small businesses, as authorized last year. In order to assure reasonable forward planning in this program, the proposed legislation will request adequate authority for continuing the program through 1969. Expenditures for urban renewal are estimated to increase by $46 million over 1965 as more projects approved in prior years move toward completion. The number of projects in which redevelopment is completed is expected to increase from 92 at the end of 1964 to 162 at the end of 1966. About 200 projects will move from the planning stage into execution in 1966, compared with 143 projects in 1964. The Urban Mass Transportation Act of 1964 authorizes grants to local communities to pay two-thirds of that portion of the capital cost of providing or improving local transit systems which cannot be recovered from revenues. In addition, it authorizes loans where revenues will cover costs but where private financing is not available on reasonable terms. Grant funds can also be used to pay part of the costs of projects designed to develop and demonstrate better methods of providing urban mass transportation. Appropriations of $161 million are requested for urban mass transportation for 1966, of which it is expected that $140 million will be reserved for project grants, $10 million for loans, and $10 million for demonstration grants. In order to allow communities ample opportunity for planning their projects, an additional appropriation this year of $150 million for grants is also recommended, to become available in 1967. Legislation will be proposed to authorize three new types of Federal grants to help local communities meet the urgent problems of growth and change: (1) matching grants for new basic water and sewer systems 110 THE BUDGET FOR FISCAL YEAR 1966 needed in rapidly growing metropolitan areas to carry out areawide development plans adopted by the various local governments; (2) grants to pay interest charges for up to five years to help these growing areas borrow money to acquire land for public facilities in advance of actual need; and (3) matching grants for urban service facilities such as neighborhood centers, to help cities with approved plans to attack their social problems. Appropriations of $35 million are recommended for 1966 for the urban planning grant program to meet the backlog of applications and the demands created by the expansion of this program in the Housing Act of 1964. An estimated $60 million will be committed in grants under the open space land grant program. These grants lielp to preserve open space in and around cities and thus to prevent the waste of resources associated with continued urban sprawl. Public housing programs.—Legislation is being proposed which, in combination with the remaining authority from the Housing Act of Housing and Community Development - Program Trends Urban Renewal rl"J/\ IVlOffJ^|0C 80- 15 — 10 — Amount Outstanding 5— i Millions 40- I I I i I I I I Federal Sewings and !*ocMt Insurance Corporation I I t I I I I I 1 I I l l1 . Public Hou.ins Thousands 30 — 20 — Units Occupied — 400 10 — -800 I I I 61 I I I I [ 65 66 CSTtMQft THE FEDERAL PROGRAM BY FUNCTION 111 1964, will permit contracts in each of the next 4 years for annual contributions to local public agencies for 35,000 additional units of low-rent public housing. In addition, legislation is being recommended to facilitate the use, through purchase and rehabilitation or lease, of 60,000 units of existing housing over the same 4-year period. Expenditures under present programs, primarily for annual contributions, will rise to $236 million in 1966 as housing units for which contracts were signed in past years are completed and occupied. Aids to private housing.—The established programs aiding private housing will continue to generate administrative budget receipts in excess of expenditures. In 1966, this excess will amount to an estimated $843 million. Federal Housing Administration.—The Federal Housing Administration expects to approve applications for insurance on mortgages financing 570,000 housing units in 1966, up 62,000 over 1965. Although claims on defaulted mortgages previously insured by the Federal Housing Administration are expected to remain high in 1966, the FHA will sell more home properties than it acquires. Receipts from such sales and from fees, premiums, and other sources will exceed claim payments and other expenditures by an estimated $127 million in 1966, and insurance reserves will continue to increase. Federal National Mortgage Association.—In 1966, commitments or reservations will be made for purchases of $688 million of federally insured or guaranteed mortgages under the special assistance functions of the Federal National Mortgage Association. This total includes $500 million for mortgages, bearing below-market interest rates, on 40,000 units of housing built for families with low or moderate incomes. To help finance these commitments, an additional $100 million of mortgage purchase authority will be required, and prompt enactment of legislation is being requested to provide it. Another $50 million in authority will be needed to support a proposed program of mortgage insurance for land development. Sufficient additional purchase authority will be proposed to become available in 1967 and later years to carry the special assistance program through 1969. Purchases of mortgages, primarily under prior year commitments, are expected to total $279 million in 1966, compared to $114 million in 1965. Direct sales of mortgages purchased in past years will decrease from $363 million in 1965 to $25 million in 1966. However, the sale of participations in pools of other mortgages, authorized by the Housing Act of 1964 in order to encourage greater private investment in housing, is expected to increase from $200 million already sold in 1965 to $350 million planned in 1966. Reflecting these and 112 THE BUDGET FOR FISCAL YEAR 1966 other factors, net receipts from the special assistance functions are expected to decline from $531 million in 1965 to $166 million in 1966., By contrast, net receipts under the management and liquidating programs of the Federal National Mortgage Association will increase from $50 million in 1965 to an estimated $312 million in 1966. Much of this increase reflects expected sales of $135 million of participations in pooled mortgages from this program. Except for Treasury loans and purchase of stock, the secondary market operations of the Federal National Mortgage Association are not reflected in the administrative budget totals. Some increase in purchases of mortgages by the secondary market operations trust fund is expected in 1966, primarily for relatively small mortgages which are less attractive to private lenders. Net expenditures by the trust fund are estimated to be $178 million in 1966, compared with $48 million in 1965. Other aids.—To increase the supply of housing available to families of moderate income, legislation will be proposed to authorize payments to nonprofit sponsors of rental housing designed to maintain rents at levels these families can afford to pay. This program will assist particularly the elderly and families forced to move because of federally assisted programs. It will also eliminate the need for the present program of direct housing loans for elderly persons with moderate incomes. Accordingly, additional funds to continue this program will not be requested. However, because of prior year commitments, expenditures are expected to be $49 million in 1966. Under the new program of low-interest-rate loans for rehabilitation of property in urban renewal areas, authorized by the Housing Act of 1964, loans totaling $48 million are expected to be approved in 1966. Share accounts in savings and loan associations insured by the Federal Savings and Loan Insurance Corporation are continuing to grow at a rapid rate, with a corresponding increase in receipts from insurance premiums. In consequence, the Corporation's receipts will exceed expenditures by an estimated $336 million in 1966, compared with $313 million in 1965. Federal home loan banks.—Payments by Federal home loan banks, mainly advances to member savings and loan associations to help meet their normal expansion in requirements for mortgage loans, are estimated to exceed repayments by $150 million in 1966. This contrasts with an excess of $250 million in repayments in 1965, following THE FEDERAL PROGRAM BY FUNCTION 113 unusually large net advances in 1964. The operations of these banks are not included in the administrative budget, but are recorded as trust fund expenditures and affect cash payments to the public. National capital region.—The Federal Government is the predominant industry in the District of Columbia. It recognizes, therefore, a special responsibility to bear its proper share of the costs of the government services provided by the District government, as well as to extend long-term loans needed to carry out an orderly program of capital improvements. Legislative authority is being proposed to provide increases in the authorizations for both types of Federal assistance and to base them on appropriate measures of the Federal impact on the community and of the District's ability to repay borrowings. Authority is also requested for additional loans for highway construction so that the District can continue with its approved program. A decade of comprehensive studies has established the need for a more adequate transportation system to meet the growing requirements of regional development, assure effective performance of Federal functions, and protect the beauty and dignity of the Nation's capital. Legislation to authorize the initial phase of a regional transit development program is being proposed, and the 1966 budget provides $16 million (including borrowing by the District of Columbia from the Federal Government for its proportionate share) to initiate engineering and design of the proposed system and for land acquisition. The specific programs and fiscal requirements of the District government are discussed more fully in the separate District of Columbia budget. HEALTH, LABOR, AND WELFARE Federal payments to the public for health, labor, and welfare programs in 1966 are estimated at $34.1 billion, an increase of $5.2 billion over 1965. Approximately $30 billion of the 1966 payments will be made through the social insurance and retirement trust funds, financed by special taxes, or through grants-in-aid for public assistance. Trust fund programs account for $3.2 billion of the increase between 1965 and 1966, mainly for old-age and survivors insurance. Administrative budget expenditures are estimated to increase by $2.1 billion, largely for accelerating the attack on poverty begun in 1965 and for selective improvements in health and welfare programs important to the development of human resources. 750-000 0—65 8 114 THE BUDGET FOR FISCAL YEAR 1966 HEALTH, LABOR, AND WELFARE [Fiscal years. In millions] Program or agency 1964 actual Administrative Budget Funds: Health services and research: National Institutes of Health Community health, except hospital construction. Hospital construction Environmental health and consumer protection. _. Maternal and child health Other Proposed legislation Labor and manpower: Manpower development and training: Present programs Proposed legislation Other Economic opportunity programs: Community action programs Job Corps Work and training programs Other Public assistance: Grants to States and other, present programs. _ _ Proposed legislation Other welfare services: Vocational rehabilitation: Present programs Proposed legislation School lunch and special milk programs Food stamp program and other Proposed legislation for military service credits. _. Subtotal, administrative budgetTrust Funds: Old-age, survivors, and disability insurance. Unemployment insurance Civil service retirement and disability Railroad retirement Other Proposed legislation Subtotal, trust funds_ Intragovernmental transactions and other adjustments (deduct) Total. Recommended new obligational 1965 1966 authority estimate estimate for 1966 Payments to the public $910 119 194 180 93 175 $874 190 212 209 111 196 $988 261 232 248 156 210 95 $1,146 314 303 273 168 196 191 116 228 229 256 183 92 290 285 140 300 85 90 140 32 469 300 456 121 620 280 479 121 3,002 ,285 214 ,286 214 120 141 278 68 294 148 166 7 302 193 60 175 10 302 159 60 5,475 6,208 8,328 2,994 16,625 3,707 1,318 1,139 -56 22,733 923 27,285 17,484 18,364 3,336 3,345 1,433 1,616 1,185 1,206 -52 -57 2,075 23,386 26,549 726 786 28,868 34,091 Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964, $5,716 million; 1965, $7,417 million. Trust funds: 1964, $25,221 million; 1965, $25,383 million. 1 9,022 19,086 3,982 2,737 1,387 7 526 1 27,725 THE FEDERAL PROGRAM BY FUNCTION 115 Health services and research.—In 1966, the Department of Health, Education, and Welfare will spend an estimated $2.2 billion for health research, training, public health services, and related consumer protection activities. National Institutes of Health.—Expenditures of the National Institutes of Health are estimated to increase by $114 million in 1966, of which $101 million will be for the conduct of research and $13 million will be for research facilities, new centers for mental retardation research, and community mental health centers. Federal support of health-related research by all agencies—of which three-fifths is by NIH—will continue to represent about two-thirds of the national total in 1966. Special Analysis H summarizes the health research efforts of all Federal agencies. Community health.—The Health Professions Educational Assistance Act of 1963, through grants for construction and loans to students, is helping to meet the urgent need for increasing the Nation's supply of doctors and dentists. It does not, however, deal with the problem of the heavy and increasing costs of operating medical and dental schools. This problem threatens to delay seriously achievement of the goal of increasing the number of medical school graduates by 50% and doubling the number of dental graduates during the next 10 years. Legislation is, therefore, being proposed to provide operating support grants to these schools and scholarships for needy students. Funds provided under the Nurse Training Act of 1964 and the Graduate Public Health Training Amendments of 1964 will increase the number of qualified nurses and professional public health personnel and improve the quality of their training. Legislation extending the Hill-Burton Act in 1964 provided for a shift of emphasis from grants for general hospital construction to grants for construction of nursing home and other long-term care facilities and for modernization of older hospitals. Appropriations of $303 million are requested for this program for 1966. Of this amount, $70 million is for nursing homes and $60 million is for hospital modernization. These requests represent substantial increases over the 1965 appropriations for these purposes. To promote more widespread application of the latest medical advances, legislation is being proposed to initiate a new system of multipurpose regional medical complexes. These regional centers will provide highly specialized care for heart disease, cancer, stroke, and other major diseases; conduct clinical investigations; and teach specialists. They will be affiliated with university medical schools and will receive diagnostic services and other support from existing community hospitals. 116 THE BUDGET FOR FISCAL YEAR 1966 Full benefits cannot be realized from the new concepts of community care for the mentally ill unless there is an adequate number of centers for this care. It is evident that lack of funds for initial staffing is inhibiting communities from developing such centers. Legislation is being proposed to (1) authorize grants for staffing mental health centers for a limited period until private or other public funds are made available and (2) continue aid to States and communities for developing mental retardation programs. Environmental health and consumer protection.—The attack on health hazards caused by air pollution, water pollution, contaminated soils and foods, and unsafe drugs will be strengthened substantially in 1966. Combined expenditures for these purposes by the Public Health Service and the Food and Drug Administration are estimated to total $248 million. The pollution of our environment continues to increase with our growing population, increasing urbanization, and changing technology. The 1966 budget continues support for research on pollution and for training of environmental health specialists. Studies of river basins and the health consequences of pesticides will be stepped up, and enforcement and abatement actions against air and water pollution will be intensified. Recommendations are being made to strengthen enforcement authority. This will be complemented by legislative proposals to (1) broaden grants to State and local air and water pollution control agencies; (2) authorize grants for projects to reduce water pollution caused by combined storm and sanitary sewers; and (3) initiate research and demonstration projects relating to disposal of solid wastes. The budget provides for strengthening the Food and Drug Administration's scientific and medical research and evaluation activities to improve the agency's capacity to detect harmful substances in foods and drugs. Maternal and child health.—In 1966, the Children's Bureau will spend $156 million for existing maternal and child health and welfare programs, an increase of $45 million over 1965. Support for projects for the health care of indigent mothers and their infants to prevent mental retardation, authorized in 1963, will be doubled. Legislation is proposed for project grants under the maternal and child health program for school health services and for comprehensive care of crippled children and youth. Combined with the proposal for medical care for children, included under public assistance, this legislation will stimulate expanded State and community action in THE FEDERAL PROGRAM BY FUNCTION 117 making available more adequate health services for children in families unable to afford medical care. Other health services.—The budget reflects the planned replacement in 1965 of two small Public Health Service general hospitals by outpatient clinics. This is the first step in a multi-year program for consolidating the present system of 12 Public Health Service general hospitals into a new system of 5 large, modern hospitals with expanded programs for training medical and dental personnel. Hospital care will be made mor6 accessible to seamen by providing for their treatment in Veterans Administration and military hospitals at locations where there are no Public Health Service hospitals. Funds are included in the 1966 budget for planning the modernization of the five hospitals, for the initial phase of the expansion of their training programs, and for improving their staffing. Mental health and mental retardation.—Expenditures for mental health and mental retardation activities are included in the various health categories discussed above. In total, the Department of Health, Education, and Welfare is expected to spend $197 million for mental health activities and $258 million for mental retardation programs in 1966. Labor and manpower.—Administrative budget expenditures in 1966 for labor and manpower programs are expected to be $81 million higher than in 1965 and $220 million above outlays in 1964. Progress made to date under the Manpower Development and Training Act of 1962 has demonstrated its effectiveness and value in equipping unemployed workers with skills which enable them to find productive employment. The budget includes $411 million in appropriations for this program for 1965, including a supplemental appropriation of $103 million. For 1966, appropriations of $425 million are recommended to carry forward training activities under this Act. It is estimated that these funds will provide training for about 260,000 unemployed or underemployed workers and youths. By the end of fiscal year 1966, an estimated 700,000 workers will have benefited from this training. The 1966 request includes $140 million under proposed legislation to (1) broaden and improve the act, (2) increase the Federal share of project costs in 1966 to 90% from the 66% which would otherwise go into effect under the present law, and (3) extend as part of the MDTA program the authority now included in the Area Redevelopment Act to provide special training programs in redevelopment areas. 118 THE BUDGET FOR FISCAL YEAR 1 9 6 6 Unemployment trust fund expenditures of $526 million are estimated for 1966 to administer the Federal-State unemployment and employment service programs. The increase of $91 million over 1965 is primarily to strengthen and improve regular employment services. However, $37 million will be for a special program begun in 1965 for expanded and improved employment services for disadvantaged youth, closely linked with community anti-poverty action plans. An appropriation is proposed for an advance from the general fund for this program, with provision for subsequent repayment from the trust fund. Economic opportunity programs.—The ^Economic Opportunity Act of 1964 launched an unprecedented national effort to combat poverty in the United States. The objective of this effort is to break the vicious cycle in which one generation's ignorance, disease, and poverty are transmitted to the next. The requested new obligational authority of $1.5 billion for 1966 will be nearly double the amount for 1965, the initial year of the program. Expenditures in 1966 are estimated at $1.3 billion, compared with $347 million in 1965. Economic opportunity programs aim to improve the educational levels, skills, and health of the poor; to increase their job opportunities; and to help them to achieve a better home life. During 1966, an estimated 600,000 persons will be enrolled in work, education, and training programs financed under the Economic Opportunity Act. In addition, several million persons, especially children and youths, will be directly assisted by community action organizations operating in an estimated 300 cities and rural localities. The Government's regular programs for education and training, health services, housing, welfare, agricultural services, and job opportunities also deal with the causes or effects of poverty. AdministraTRENDS IN ECONOMIC OPPORTUNITY ACT PROGRAMS [Fiscal years) Description Community action programs: Communities with operating grants _ Communities with planning grants.— Enrollees in Job Corps (end of year) Enrollees in work and training programs: Neighborhood Youth Corps _ College work-study Work experience .-_ Enrollees in adult literacy programs Number of loans to low-income rural families VISTA volunteers (end-of-year) 1965 estimate 240 170 25,000 175,000 96,700 88,000 37,500 7,000 3,500 1966 estimate 300 300 40,000 290,000 101,700 112,000 70,C00 15,500 5,000 THE FEDERAL PROGRAM BY FUNCTION 119 live budget expenditures in 1966 include an estimated $3 billion in total for services to low-income people under existing programs. In addition, much of the new legislation proposed for 1966—especially for health and for education—is directed toward meeting the needs of low-income families. Community action programs.—A successful attack on poverty can best be conducted at the local level by persons acquainted with the problems of the poor in their own communities. Therefore, the principal vehicle of the anti-poverty program is the establishment of comprehensive community action programs planned and administered by local organizations representative of the major political, social, and economic forces in the community, including the poor themselves. Such community action programs and organizations will provide a framework for effectively coordinating the various Federal, State, and local programs currently available to assist the poor. Federal grants will be made available to supplement existing funds and programs so that the full range of services needed by the poor will be available to them. The budget contains $620 million in new obligational authority for 1966 for community action programs, including research, training, and special demonstration projects. Included in this total is an estimated $150 million for preschool programs to prepare culturally deprived children for the regular elementary school curriculum. For children who are to enter school next fall, $15 million has been allocated in 1965 for a "Head-Start" program to give these youngsters 2 months of intensive preschool preparation. Job Corps.—The Job Corps—administered by the Office of Economic Opportunity through agreements with Federal agencies, State or local governments, or private organizations—provides work, remedial education, and vocational training for young people 16 through 21 years of age who are out of school and cannot progress properly in their home environment. In 1966, an estimated 40,000 young people will participate, an increase of 15,000 from 1965. Rural centers, offering remedial education and conservation work, will provide opportunity for an estimated 16,000 young men. Urban centers will provide vocational and prevocational training for 24,000 young men and young women. Work and training programs.—The Economic Opportunity Act provides for three work and training programs, each aimed at a different group of people. In 1966, the Neighborhood Youth Corps, administered by the Department of Labor, will provide part-time or full-time employment and training opportunities for about 290,000 youths, both in and out of school. Approximately 112,000 needy, employable 120 THE BUDGET FOR FISCAL YEAR 1 9 6 6 adults will participate in the work experience program aimed at enabling them to achieve economic independence; this program is administered by the Welfare Administration of the Department of Health, Education, and Welfare. The work-study program operated by that Department's Office of Education will provide full-time summer jobs and part-time jobs during the school year for an estimated 101,700 college students who would otherwise not be able to attend school. Other programs.—The Economic Opportunity Act authorizes several additional programs to aid particular groups of poor people, including grants and loans to help migrant workers, loans to low-income farmers and rural families, loans to persons with poverty-level incomes engaged in small business enterprises, and grants to States to finance literacy training programs for adults. The act also establishes the Volunteers in Service to America (VISTA), through which, in 1966, it is expected that 5,000 Americans will devote a year of their lives in constructive service to the poor. H e a l t h , Labor, and W e l f a r e - Program Trends Hili-Burton Pros«f Social Security -15 80OASDI Beneficiaries -10 ft 1 1 i i | i i | i i i i I i School Lunch Prosram 1 i \ i i i i i 1 >/ocatioiItQI nCnQDIIfTCITIQII Thousands -150 Millions 18/ 16- -100 1412 10 - !« Q ^ ^ ^ ^ Children Participating Rehabilitations ^^01"* ^ — 50 8 \ 0-J L. \ 1955 57 Fiscal Years f $9 I l 61 ' I | 6$ | I f i 65 66 1955 ' Estimate I 1 57 1 | 59 1 1 61 I 1 1 63 -L-JL-0 65 66 Estimate THE FEDERAL PROGRAM BY FUNCTION 121 Social insurance and public welfare.—In the last 30 years, the United States has adopted and greatly improved public programs which protect the aged, the disabled, the unemployed, and dependent families who are unable to provide for themselves. For example, in 1966, persons over 65 years of age will receive about $22 billion in Federal benefits and services. The basic old-age, survivors, and disability insurance system now covers over 90% of our workers and their families. Nevertheless, gaps still exist in the protection provided through public income maintenance programs, particularly for dependent children and for the unemployed. The provision of medical and other services is inadequate. Benefit payments are too low for those who must depend entirely on public programs. This budget includes proposed legislation to lessen these deficiencies. Social insurance.—Expenditures of $26.5 billion are estimated in 1966 from trust funds for old-age, survivors, and disability insurance; for unemployment insurance; for railroad retirement; and for the retirement programs for Federal civilian employees. This represents an increase of $3.2 billion over 1965, of which $2.1 billion is under proposed legislation—almost entirely for social security benefit increases. Lack of protection for the aged against the impact of heavy hospital and nursing home bills is a major shortcoming of our social security system. Early enactment is recommended of legislation to provide such protection effective July 1, 1966, for the 85% of the aged who are entitled to receive social security benefits. The cost of this new program will be financed by payroll contributions to be shared equally by the worker and his employer. For persons currently aged who are not covered by social security, the cost of the new benefits would be financed from general appropriations. The proposed legislation also provides a 7% cash benefit increase, retroactive to January 1, 1965, for beneficiaries of the old-age, survivors, and disability insurance system. Under existing law, the combined employer-employee payroll tax for the old-age, survivors, and disability insurance program is scheduled to increase from 7.25% to 8.25% effective January 1, 1966. The proposed legislation will increase the taxable wage base from $4,800 to $5,600 effective January 1, 1966, and will raise the combined payroll contribution in the initial year to 8.5%. Of this, 0.6% will be earmarked for the new hospital insurance trust fund. Total receipts of the social insurance and retirement trust funds, which are financed by special payroll taxes or contributions, are expected to rise by $2.3 billion over 1965 to $27.7 billion in 1966. This estimate includes $526 million from proposed legislation, mainly 122 THE BUDGET FOR FISCAL YEAR 1966 the increases in the tax rate and wage base for social security and hospital insurance. Benefit payments of $2.6 billion are estimated in 1966 under the Federal-State unemployment insurance system. No Federal legislation to improve this insurance system has been enacted in the last 10 years, and, in many States, the coverage and duration of benefits are inadequate. The system as a whole covers only 60% of the labor force and replaces only about 25% of the wages lost by covered unemployed workers. Proposed legislation will include improvements to (1) extend coverage of the system; (2) establish Federal standards relating to duration and level of benefits; (3) strengthen financing; and (4) establish a new, separate Federal system of extended benefits for workers who have been in the labor force for a long time. The budget includes $60 million in 1966 under proposed legislation for the first of a series of payments, to take place over a 50-year period, to liquidate the Federal Government's obligation to the old-age, survivors, and disability insurance system for credits for past military service. Appropriations of $17 million are recommended for the second of 10 installments to liquidate a similar Federal obligation to the railroad retirement trust fund. Public assistance.—The Federal-State public assistance program is the largest single protection against want and deprivation for needy families and individuals who have no other resources. Under this program, financial and medical assistance will be provided in 1966 to an average of about 8 million of our Nation's poorest citizens, including an estimated 748,000 aged citizens who will receive special medical assistance. The numbers of aged persons receiving medical assistance and of dependent children receiving cash assistance have been increasing, while caseloads under the regular old-age assistance, aid to the disabled, and aid to the blind programs have remained relatively stable. Public assistance payments in many States—particularly for dependent children—are inadequate to meet even minimum standards of health and decency. Assistance is not available at all for the more than 24,000 needy aged who are patients in mental or tuberculosis institutions. In addition, medical care for dependent children under the public assistance program is minimal or entirely unavailable in many States. As a first step toward remedying these deficiencies, legislation is being proposed to increase the Federal share of public assistance payments, to extend assistance to needy elderly patients in THE FEDERAL PROGRAM BY FUNCTION 123 tuberculosis or mental institutions, and to expand medical assistance for children in poor families. Other welfare services.—In 1966, the Federal-State vocational rehabilitation program is expected to restore an estimated 145,000 individuals to employ ability, an increase of 2 1 % over 1964. Legislation is proposed to expand vocational rehabilitation services, particularly for the mentally retarded and the severely disabled. A major contribution toward the welfare of American youngsters is made by the school lunch program which will reach almost 18 million schoolchildren in 1966 at an estimated Federal cost of $202 million. In addition, expenditures of $100 million are estimated for the special milk program. Further expansion of the food stamp program, as provided in legislation enacted last year, will enable it to serve more than 1 million individuals in 1966. EDUCATION Increased Federal support for education is vital because of the crucial role of educated talent in our free society. Each individual must have an opportunity for education to the maximum of his capabilities to fulfill his own potential and to be prepared to work in an increasingly complex economy. Use of resources for broadening educational opportunities is one of the most productive investments our Nation can make. The bulk of the Nation's support for education is properly provided by State and local governments and by private individuals and institutions. However, there is also an increasing responsibility at the national level for providing leadership and resources to insure that national educational objectives are achieved. The 1966 budget recognizes this Federal responsibility. It provides $4.1 billion in new obligational authority for 1966—a 63% increase over 1965—to accelerate progress in education at all levels. Expenditures in 1966 are estimated at $2.6 billion, representing an increase of more than 75% over 1965. The two major components of the proposed strengthened Federal support for the Nation's educational system in 1966 are: (1) Increases of $342 million in new obligational authority and $359 million in expenditures for the new or expanded educational measures enacted by the 88th Congress, including higher education facilities, student loans and other defense educational activities, vocational education, and public library grants; and (2) Provision of $1.5 billion in new obligational authority and $600 million in expenditures for new programs proposed for enactment this year. 124 THE BUDGET FOR FISCAL YEAR 1966 EDUCATION [Fiscal years. In millions] Pro Payments to the public 1964 actual 1965 1966 Recommended new obligational authority for 1966 Administrative Budget Funds: Assistance for elementary and secondary education: Assistance to schools in federally impacted areas National defense education: School equipment, guidance, and testing Proposed legislation to strengthen elementary and secondary education Assistance for higher education: Academic facilities loans and grants National defense education: Student loans, fellowships, and language and area centers College housing loans Assistance for land-grant colleges, Howard University, and Gallaudet College Proposed legislation to aid colleges and college students $334 $328 70 $368 $397 103 113 500 1,255 165 642 135 219 164 229 216 265 251 29 32 36 100 31 260 155 38 96 21 162 44 97 22 207 59 113 26 277 95 129 29 41 35 89 43 7 26 72 50 94 56 18 57 186 41 105 62 37 75 265 49 107 55 55 93 ,339 1,509 2,663 41 47 54 ,299 1,463 Assistance to science education and basic research: National Science Foundation: Basic research and specialized research facilities Grants for institutional science programs Science education Other science activities Other aids to education: Vocational education Other defense education assistance Indian education services Library of Congress and Smithsonian Institution Grants for public libraries Other Subtotal, administrative budget_ Trust Funds Intragovernmental transactions and other adjustments (deduct) Total. 1 Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964, $1,530 million; 1965, $2,519 million. Trust funds: 1964, $2 million; 1965. $2 million. 2,611 M.103 THE FEDERAL PROGRAM BY FUNCTION 125 The new programs will place particular stress on innovation in, and support for, elementary and secondary education, especially for children in poor areas. Grants totaling $1,255 million are included in the budget for these programs. New proposals will also call for authorization of $260 million to expand higher educational opportunities by helping to strengthen colleges, providing extension education to serve urban areas, and aiding low-income college students through grants, loan guarantees, and increased work-study programs, Further details were provided in a special message on education. The following sections describe the budget recommendations for existing education programs. Assistance for elementary and secondary education.—Expenditures of $472 million are estimated in 1966 for schools in areas affected by Federal activities and for aid to elementary and secondary schools under the National Defense Education Act. Amendments to the latter act in 1964 enlarged the total authorization and extended eligibility for purchase of equipment and library books to five new subject areas—history, civics, geography, English, and remedial reading. The budget provides the full amount authorized for grants to support guidance and testing services, which must be strengthened to assist students in pursuing education programs bast suited to their abilities and interests. New obligational authority requested for 1966 for grants to federally affected areas is about the same as for 1965, reflecting the closing of military bases and the results of stringent Federal employment policies. Expenditures will increase, however, because of payments coming due under obligations incurred in prior years. Education Expenditures for 1966 rust Funds 126 THE BUDGET FOR FISCAL YEAR 1966 Education ~ Prosram Trends Impacted Area Program Millions Nationaf Science Foundation ( OPERATING GRAMTC ) Thousands -10 2.0- ^ E n r o l l e d Children 1.0-— A 'Fellowships and Traineeships .5 — I I I I I I I I I I I Vocational Education I I I I I I I I j Defense Education Activities Thousands -400 -300 Number Enrolled -200 'Student Loans -100 1 I I I 1 1955 5? Fiscal Years 59 I I 61 1 I I 63 J Estimate J 1 1 1 ! 65 66 1955 57 59 I 61 I I 63 I I I 65 66 Estimate Assistance for higher education.—Expenditures for existing higher education programs are estimated to increase by $254 million in 1966 to a level of $682 million. Nearly three-fifths of this increase is for the program started in 1965 providing grants and loans to aid in construction of classrooms and other academic facilities. The budget includes new obligational authority of $642 million for this new program, which will provide assistance to about 1,000 colleges in 1966. Under the National Defense Education Act, 340,000 students are expected to receive loans in 1966, an increase of 23,000 over 1965. In addition, 10,500 graduate students will be supported by fellowships under this Act, compared with 5,900 in 1965. College housing loan approvals in 1966 by the Housing and Home Finance Agency are expected to remain at the $300 million level attained in 1964 and 1965. Additional new obligational authority needed to continue the college housing program in 1966 is recommended for enactment early in calendar year 1965. To encourage colleges to plan for future housing needs, authority is also being requested THE FEDERAL PROGRAM BY FUNCTION 127 to finance the program through 1969. The $36 million increase in expenditures estimated between 1965 and 1966 reflects increased construction outlays on projects previously approved. Assistance to science education and basic research.—The National Science Foundation helps develop the Nation's scientific capability by supporting science education and basic research. For 1966, new obligational authority of $530 million is recommended, an increase of $110 million over 1965. Nearly 70% of this increase is needed to provide adequate overall Federal support for research in universities. With the tapering off of growth in research support from other agencies, increased reliance must be placed on the Foundation in 1966 to underwrite the Nation's basic scientific research, particularly at universities. Increases are also estimated for grants by the National Science Foundation to accelerate the development of an additional number of selected academic institutions into centers of scientific excellence and to support science education. Expanded support for graduate education in the sciences will, in 1966, enable more than 8,800 fellowship recipients to further their scientific training and about 45,000 science teachers to update their knowledge through college and secondary school teacher training institutes. Reflecting the recommended increases in new obligational authority, expenditures for the Foundation's programs are estimated to rise by $80 million to a level of $405 million in 1966. Other aids to education.—Vocational education, especially beyond the high school level, is essential for the 65% of the Nation's youngpeople who are not now going on to college and for workers whose skills are'made obsolete by economic change. As a result of the Vocational Education Act of 1963 which modernized this program, Federal expenditures for vocational education are estimated to rise to $186 million in 1966, more than double the 1965 level. Emphasis is being placed on training for expanding occupations, such as technical and subprofessional health vocations, rather than on the traditional agricultural and home economics vocations. The new emphasis, combined with the programs under the Manpower Development and Training Act of 1962 and the Economic Opportunity Act of 1964 (both included in the budget under health, labor, and welfare), will advance this increasingly important aspect of American education. Under the 1964 amendments to the National Defense Education Act, teacher institute programs were broadened to include English, history, and other fields. In total, an estimated 21,000 teachers will participate in institutes under this Act in 1966. The Library Services and Construction Act of 1964 enlarged the Federal role in providing public library books, services, and construction; in 1966, expenditures of $37 128 THE BUDGET FOR FISCAL YEAR 1966 million are estimated to carry out this role, more than double the amount estimated for 1965. Expenditures are also estimated to increase in 1966 for research and demonstration projects designed to achieve more effective teaching in our schools, for construction of educational television facilities, for expanded training of teachers of the handicapped, and for continued strengthening of the Office of Education. VETERANS BENEFITS AND SERVICES The 1966 budget provides for the higher pension benefits' and the new nursing home care programs enacted by the 88th Congress. Increased funds are also recommended for hospital and nursing home construction. Obligations for compensation benefits are expected to continue at the record level reached during the current year. Nevertheless, payments to the public in 1966 for veterans benefits and services are estimated to be $874 million less than in the current year, principally because of certain anticipated financial transactions, which do not affect the actual benefits or services provided to veterans. These transactions include increased private financing of veterans housing programs through mortgage sales totaling over $1 billion and proposed legislation to spread the mailing of checks for compensation and pensions more evenly through each month. The cycling of veterans benefit checks represents an improvement in procedures which will save the Government about $1.7 million annually in administrative expenses and substantial amounts in interest costs. Transition payments will be made to insure that no veteran receives reduced payments in the calendar month during which the changeover is made. The shift to the new system, however, will yield a nonrecurring reduction of $150 million in Federal expenditures in 1966. Life insurance trust fund payments are also estimated to be $130 million lower, largely because dividends scheduled for payment in 1966 are being accelerated into 1965. In addition, organizational and management improvements will provide significant savings in the general and medical operating expenses of the Veterans Administration. Service-connected compensation.—Compensation payments for death and disability resulting from military service are estimated at nearly $2.2 billion in 1966, approximately the same as in the current year. A slightly declining caseload will be offset by higher average payments per case as veterans advance in age and disabilities become more serious. Approximately 2,357,000 disabled veterans or their survivors will receive payments in 1966, about 3,000 less than this year. The average annual payment in 1966 is estimated to be $859 to disabled veterans and $1,274 to survivors. 129 THE FEDERAL PROGRAM BY FUNCTION VETERANS BENEFITS AND SERVICES [Fiscal years. In millions) Payments to the public Program or agency 1964 actual Administrative Budget Funds: Service-connected compensation Non-service-connected pensions Readjustment benefits: Education and training Direct housing loans Housing loan guarantees Other __. Recommended new obligational authority for 1966 1965 1966 ,158 ,743 $2,173 1,834 $2,174 1.903 $2,174 1,903 59 -32 76 10 37 -226 40 10 28 -719 -144 9 28 ,111 70 47 1,145 80 55 1,168 93 54 1,177 102 55* 10 60 -6 65 -33 65 11 65 178 176 177 176 Hospitals and medical care: Medical care and hospital services Construction of hospital and nursing home facilities Medical administration, research, and other.__ Other veterans benefits and services: Insurance and servicemen's indemnities Burial and other allowances Veterans Administration general operating expenses and other _ Proposed legislation to even out check mailings for compensation and pensions Subtotal, administrative budget. Trust -150 5,492 5,383 4,623 15,699 585 72 9 563 69 9 439 63 12 665 47 9 666 641 514 i 721 51 38 27 6,107 5,985 5,111 Funds: National service life insurance. _. U.S. Government life insurance. Other Subtotal, trust funds. Intragovernmental transactions and other adjustments (deduct) TotaL * Compares with new obligational authority for 1964 and 1965. as follows: Administrative budget funds: 1964, $5,589 million; 1965, $5,767 million. Trust funds: 1964, $719 million; 1965, $721 million. Non-service-connected pensions.—In 1966, pensions for disability and death not connected with military service are expected to rise by $69 million over 1965 to a new high of $1.9 billion. Most of this increase is attributable to amendments to the Veterans Pension Act enacted in the 88th Congress which increased payments and liberalized 750-000 O~65 9 130 THE BUDGET FOR FISCAL YEAR 1966 income criteria for eligibility. While the 1,173,000 veterans expected to be receiving pensions in 1966 represent a decline of 20,000 from 1965, the average payment per case is estimated to increase from $1,003 to $1,039. The number of veterans survivors receiving pensions is estimated to rise by 47,000 to a total of 942,000, and the average payment per case will rise from $712 to $729. World War I veterans and their surviving beneficiaries comprise almost 70% of these pensioners. Payments to veterans of World War II and the Korean conflict and their survivors will continue to rise as increasing numbers of veterans reach ages at which rates of disability and mortality mount. Veterans Benefits and Services - Program Trends I I I I 1 1 1 1 I I I I I I I I I I I ' I I Fiscal Year, Readjustment benefits.—Expenditures for education and training will decline in 1966 because the program for veterans of the Korean conflict terminates on January 31, 1965. However, education and training benefits previously available to war orphans have been extended to children of veterans who are permanently and totally disabled due to military service. The number of war orphans or depend- THE FEDERAL PROGRAM BY FUNCTION 131 ent children receiving education and training is estimated at 17,100 in 1966. The Veterans Administration guarantees housing loans for eligible veterans and makes direct housing loans to veterans in rural areas and relatively small communities where private credit is not generally available. Net receipts of $863 million are estimated in these programs in 1966, made possible in large measure by anticipated increased purchases by private investors of VA-held housing loans. Net receipts of the direct loan program are expected to be $493 million higher in 1966 than in 1965, primarily because private financing is expected to be enlarged through greatly expanded sales of certificates of participation in a pool of mortgage loans. In addition, the number of new loans is expected to decline from 14,000 in 1965 to 10,000 in 1966, as fewer veterans remain eligible. About $630 million of unobligated funds are estimated to be carried forward into 1966 for the direct loan program, an amount considerably in excess of the new loans expected to be made in that year. Accordingly, the budget includes a proposal to cancel the $100 million of new obligational authority which would otherwise become available for 1966 under present law. The loan guarantee program, which is estimated to require $40 million in net expenditures in 1965, will have estimated net receipts of $144 million in 1966. As in the direct loan program, the main reason for the shift is the sharp expansion planned in private financing through sales of certificates of participation. Foreclosures of 23,660 mortgages financed with guaranteed loans are expected in 1966, slightly lower than in 1965. In addition, the number of loans guaranteed will decline by 10% as an increasing number of World War II veterans become ineligible for home loan guarantees. Eligibility of veterans of the Korean conflict begins to expire in 1965, depending on the individual's length of service and discharge date. Hospitals and medical care.—The 1966 budget includes expenditures of $1,222 million for veterans hospital and medical care services, including administration and medical and prosthetic research. This estimate is $22 million higher than the amount expected to be spent in 1965. Provision is made for continued improvement in the quality of medical care, expansion of research, and activation of three new hospitals in Washington, D.C., Atlanta, Ga., and Charleston, S.C. The new nursing home care program in Veterans Administration facilities started in 1965 will be expanded in 1966, and nursing home care of veterans through payments to private homes will be initiated. Savings from the closing in 1965 of 11 hospitals and 4 domiciliary homes which are no longer needed will largely offset the costs of these expansions and improvements. 132 THE BUDGET FOR FISCAL YEAR 1966 Hospital, domiciliary, and nursing home care will be provided in 1966 for an average of 138,802 beneficiaries per day in Veterans Administration, contract, and State facilities—approximately 1,200 more than in 1965. There will also be an estimated 6.2 million visits by veterans to outpatient clinics operated by the Veterans Administration or to private physicians and dentists at the expense of the Veterans Administration. Hospital construction.—Expenditures for hospital construction in 1966 are estimated to be $93 million, an increase of $13 million over 1965. New obligational authority of $102 million is proposed for the year, representing the sixth step in carrying out the 15-year, $1.2 billion hospital construction program initiated in 1961 to modernize the 125,000-bed hospital system. Included in this total is $5 million to initiate a grant program to assist State soldiers' homes to build nursing home facilities for veterans as authorized by the 88th Congress. Construction will be started on new hospitals of 760 beds at Chicago, 111., and of 480 beds at Columbia, Mo., and on a partial replacement of the hospital at Northport, N.Y., providing 480 beds. Planning for three new hospitals will be initiated, and several new modernization projects will be undertaken. New obligational authority of $6 million is provided for 1966 for the construction and planning of new medical research facilities. Veterans life insurance trust funds.—The national service and U.S. Government life insurance trust funds finance about 5 million life insurance policies, primarily for veterans of World Wars I and II. Receipts are chiefly from premiums and interest on investments; expenditures are mainly for death and disability claims and dividends. Trust fund expenditures are estimated to decline by $130 million in fiscal year 1966, mainly because $101 million of the $225 million total regular dividend payments due in that year are being disbursed in January 1965. Other veterans benefits and services.—Insurance and indemnity expenditures made from administrative budget funds are estimated to decline by $27 million in 1966 because (1) the servicemen's indemnity program is gradually coming to an end as scheduled 10-year payments are completed and (2) premiums in the early years of new insurance programs for disabled veterans enacted by the 88th Congress will exceed insurance payments and administrative costs. Reductions in workload, continuing improvements in productivity, and continued field office reorganization, including the consolidation of 17 regional offices, will result in decreased costs for general administrative operations of the Veterans Administration. THE FEDERAL PROGRAM BY 133 FUNCTION INTEREST Interest payments will continue to rise in fiscal year 1966, but at a slower pace than in recent years. The increase in the outstanding public debt will cause most of the rise in these payments. Higher short-term interest rates during the past 18 months, required to limit the flow of short-term funds abroad, will also cause minor upward adjustments in interest payments in 1966, as outstanding obligations mature and are refunded with securities paying higher rates. INTEREST [Fiscal years. In millions] Item Payments to the public 1964 actual Administrative Budget 1966 Funds: Interest on public debt Interest on refunds of receipts Interest on uninvested funds Subtotal, administrative budget Intragovernmental transactions and other adjustments (deduct): Interest paid to trust funds and Government agencies Excess of interest accrued over interest paid Total 1965 Recommended new obligational authority for 1966 $10,666 $11,200 $11,500 82 75 12 12 $11,500 82 12 10,765 11,286 11,594 11.594 1,837 917 1,992 833 2,133 648 8,011 8,461 8,813 As usual, payments to the public for interest in 1966 will be substantially below estimated administrative budget expenditures for two main reasons: (1) interest payments of over $2 billion received by Federal trust funds and agencies from their investments in U.S. Government securities are included in administrative budget expenditures but not in cash payments to the public, since they are transactions within the Government, and (2) accruals of interest on savings bonds—included in administrative budget expenditures—are estimated to exceed by $648 million the actual interest payments made to bondholders during 1966. GENERAL GOVERNMENT Payments in 1966 for the legislative and judicial functions of the Federal Government and for the general administrative, fiscal, and law enforcement activities of the executive branch will total an estimated $2.4 billion, an increase of $43 million over 1965. 134 THE BUDGET FOR FISCAL YEAR 1966 GENERAL GOVERNMENT [Fiscal years. In millions] Program or agency 1964 actual Administrative Budget Funds: Legislative functions . Judicial functions Executive direction and management Central fiscal operations: Recommended new obligational 1965 1966 authority estimate estimate for 1966 Payments to the public $126 66 22 $155 77 25 $154 89 26 $148 90 27 560 231 594 247 606 247 638 248 196 276 103 * 185 323 90 192 315 88 1 204 314 92 63 111 55 116 49 120 54 120 321 14 360 16 370 17 367 18 133 131 32 41 145 15 6 142 22 6 2 14 7 45 13 2,280 2,417 2,462 Trust Funds - 18 19 20 Intragovernmental transactions and other adjustments (deduct) 78 83 86 2,221 2,353 2,396 Internal Revenue Service Other General property and records management: General Services Administration: Public Buildings Service: Construction, sites, and planning Operation, maintenance, and other Other Central Intelligence Agency building Central personnel management: Department of Labor Civil Service Commission Protective services and alien control: Department of Justice Other . Other general government: Territories and possessions: Present programs Proposed legislation for Ryukyu Islands claims Treasury—claims Government Printing Office building (Legislative branch) Alaska grants and other Subtotal, administrative budget. Total. 24 *Less than one-half million dollars. 1 Compares with new obligational authority for 1964 and 1965, as follows: Administrative budget funds: 1964, $2,318 million; 1965. $2,462 million. Trust funds: 1964. $18 million; 1965. $21 million. 1 2,546 120 THE FEDERAL PROGRAM BY FUNCTION 135 Central fiscal operations.—Expenditures of the Internal Revenue Service are estimated to increase by $12 million to $606 million in 1966. This increase will allow the Service to (1) handle the growth in workload from an anticipated 1.9 million additional returns, (2) make further progress in establishing a nationwide master file for all taxpayers, and (3) take another forward step on the long-range program to improve taxpayer compliance. These measures will help to assure increasing efficiency and equity in collection of the revenues necessary to finance Federal operations, so that taxpayers may have confidence in the administration of the revenue laws. General property and records management.—To continue the Government-wide program of providing more modern and efficient facilities for Government operations, new obligational authority of $204 million is requested for 1966 for acquisition of sites, planning, and construction of new buildings by the General Services Administration. This amount is $26 million more than the appropriations for 1965 for these purposes. Expenditures in 1966 will also rise over 1965, as progress is made on construction financed in prior years. In other public buildings activities, expenditures are estimated to decline by $8 million in 1966, reflecting mainly decreases for repairs and improvements. Central personnel management.—It has been over 10 years since a thorough study was made of Government retirement programs and policies. There have been numerous adjustments in the Federal programs and important developments in other public and private retirement systems. The costs of Federal retirement programs will exceed $3 billion in 1966, and will continue to increase. To establish a realistic and comprehensive framework for considering changes and improvements in existing military and civilian retirement programs, a Cabinet-level Committee, supported by an adequate staff, will make a thorough review of all Government retirement systems and their interrelationships with one another and with the social security system. The Committee will also consider problems relating to the future financing of the retirement funds and benefits provided for the survivors of Federal employees. 136 THE BUDGET FOR FISCAL YEAR 1966 General Government - Program Trends | I I 1 I I I \ 1 t 1 I I I | I I I I t. Millions © I S * Ft. -150 Returns Filed 90- « too \ Government Space Managed -50 I 1955 5 7 I I I I I I I I I I I I I I I 63 I I 6$ I 66 KscatYcae* Protective services and alien control.—^Expenditures for the law enforcement and related activities of the Department of Justice are estimated to increase by $10 million in 1966, primarily to complete prison construction for which funds were appropriated in earlier years and to provide additional personnel for the Federal Bureau of Investigation. Expenditures resulting from civil rights activities are estimated to increase in both 1965 and 1966. New obligational authority recommended for the Department of Justice for 1966 is $8 million less than in 1965 because of lower requirements for new prison construction. Other general government.—The Government Printing Office, an agency of the legislative branch of the Government, is requesting appropriations of $45 million to build a modern plant adequate in size to meet its growing requirements. Funds to select a site and to design such a building have previously been provided. THE FEDERAL PROGRAM BY FUNCTION 137 In 1964, as part of the Federal assistance to Alaska following the earthquake last spring, the Congress authorized $23.5 million in additional transitional grants to help offset the anticipated loss of revenues and extraordinary expenses of the State and its local governments. An appropriation of the $6.5 million remaining under the authorization is being requested, with the understanding that such amount may be reduced when the latest data on revenue losses and extraordinary expenses are received. Legislation is being proposed to authorize payment of claims in 1966 to certain inhabitants of the Ryukyu Islands for damages by U.S. Forces before the Japanese Peace Treaty was signed. 138 THE BUDGET FOR FISCAL YEAR 1966 Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY FUNCTION AND AGENCY (in millions of dollars) I Note.— This table shows expenditures by agency for each subfunction. The accounts which make up the total for each agency are identified by the functional code numbers shown in the analysis of new obligational authority and expenditures (pp. 158 to 353)1 NEW OBLIGATIONAL AUTHORITY Description 1964 actual ADMINISTRATIVE FUNDS 050 1966 1965 estimate estimate EXPENDITURES 1964 actual 1965 1966 estimate estimate BUDGET NATIONAL DEFENSE 051 Department of Defense—Military: 13,883 Military personnel Operation and maintenance 11,705 Procurement _ _ 15,645 Research, development, test, and evaluation 6,984 Military construction _ 949 Family housing 644 Civil defense, _ _ _ _ _ _ 112 Revolving and management funds _ _ _ 14,666 12,451 13,386 14,560 12,472 11,412 14,195 11,932 15,351 14,820 12,220 13,275 14,800 12,160 13,220 6,485 940 631 105 6,709 1,313 736 194 7,021 1,026 580 107 -452 6,700 1,000 630 125 -670 6,400 920 660 110 -370 49,922 48,663 47,395 49,760 48,100 47,900 057 Military assistance: Funds appropriated to the President 1,000 1,055 1,170 1,485 1,200 1,100 058 Atomic energy: Atomic Energy Commission _ 2,743 2,625 2,481 2,765 2,700 2,530 6 6 5 4 91 6 76 7 -32 28 9 10 20 * 13 * 16 18 41 48 Total 051 059 Defense-related activities: Executive Office of the President Funds appropriated to the President Department of Health, Education, and Welfare Treasury Department General Services Administration _ Other independent agencies: Selective Service System _ _ _ Total 059 Total, national defense. _ _ 150 INTERNATIONAL AND FINANCE Total 151 footnotes at end of 24 18 18 40 48 50 98 80 83 172 160 48 53,762 52,424 51,129 54,181 52,160 51,578 283 294 318 279 296 306 1 3 2 3 2 4 9 3 37 3 2 3 8 9 12 6 10 10 295 308 335 297 346 321 48 A F F A I R S 151 Conduct of foreign affairs: Department of StateOther independent agencies: Foreign Claims Settlement Commission Tariff Commission United States Arms Control and Disarmament Agency _ _ _ See 8 17 table, p. 151. 139 THE FEDERAL PROGRAM BY FUNCTION Table 14 NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY FUNCTION AND AGENCY (in millions of dollars)—Continued NEW OBLIGATIONAL AUTHORITY Description EXPENDITURES 1964 actual 1965 1966 1964 actual 1965 1966 2,208 9 11 3,848 2 8 2,895 4 8 2,169 2 10 2,449 4 11 2,240 12 9 -702 -645 -480 ADMINISTRATIVE BUDGET FUNDS—Continued 152 Economic and financial assistance: Funds appropriated to the President Department of Commerce Department of State Other independent agencies: ExportImport Bank Total 152 153 Foreign information and exchange activities: Department of State __ Other independent agencies: United States Information Agency Total 153 154 Food for Peace: Department of Agriculture _ Total, international affairs and finance 1 Of which Food for Peace 2,227 3,858 2,907 1,479 1,820 1,780 48 51 62 46 52 59 166 169 173 161 164 161 214 219 235 207 216 221 1,720 2,374 1,658 1,704 1,661 1,661 4,043 3,984 4,457 3,687 5,136 6,759 (1,720) (2,374) (1,658) (1,704) (1,661) (1,661) 250 SPACE RESEARCH AND TECHNOLOGY 251 Space research and technology: National Aeronautics and Space Administration 5,100 5,250 5,260 4,171 4,900 5,100 350 AGRICULTURE AND AGRICULTURAL RESOURCES 351 Farm income stabilization: Department of Agriculture 4,206 3,381 3,125 4,144 3,103 2,716 114 197 168 259 248 151 -9 -6 -13 352 Financing farming and rural housing: Department of Agriculture Other independent agencies: Farm Credit Administration _ 114 197 168 251 242 138 353 Financing rural electrification and rural telephones: Department of Agriculture 506 447 114 342 199 200 354 Agricultural land and water resources: Department of Agriculture _ _ __ 426 438 326 410 441 424 Total 352 See footnotes at end of table, p. 151. 140 THE BUDGET FOR FISCAL YEAR 1966 Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES FUNCTION AND AGENCY (in millions of dollars)—Continued NEW OBLIGATIONAL AUTHORITY BY EXPENDITURES Description 1964 1964 1966 1965 es e 1965 1966 e ADMINISTRATIVE BUDGET FUNDS—Continued 355 Research and services: other agricultural Funds appropriated to the President Department of Agriculture Other independent agencies: National Commission on Food Marketing. _. Total 355 Total, agriculture and agricultural resources (not including Food for Peace) 1 ___ 425 1 413 * 492 464 1 1 414 493 466 4,207 5,560 4,477 3,944 1,226 647 42 1,281 584 17 1,093 572 11 1,200 588 26 1,245 499 39 13 12 13 * * 57 14 * 1 39 502 474 1 2 425 502 475 5,677 4,966 1,097 618 10 12 * 400 NATURAL RESOURCES 401 Land and water resources: Department of Defense—Civil _ _ _ _ Department of the Interior Department of State Other independent agencies: Federal Power Commission Delaware River Basin Commission Public Land Law Review Commission Tennessee Valley Authority U.S. Study Commissions 47 * 48 14 * 1 59 1,784 1,976 1,956 1,747 1,885 1,837 __ 342 15 362 22 356 19 317 15 361 22 340 19 .... 357 384 376 332 383 359 90 107 111 91 109 111 110 2 123 2 * 116 2 * 103 2 119 2 * 111 2 112 125 118 105 121 114 127 151 249 130 145 186 Total 401 402 Forest resources: Department of Agriculture Department of the Interior Total 402_ 403 . . _. Mineral resources: Department of the Interior 404 Fish and wildlife resources: Department of Defense—Civil Department of the Interior. Department of State. _~ ___ Total 404 405 59 * Recreational resources: Department of the Interior _ Other independent agencies: Outdoor Recreation Resources Review Commission 127 Total 405 See fo * end of table, p. 151. 151 249 130 145 186 141 THE FEDERAL PROGRAM BY FUNCTION Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES FUNCTION AND AGENCY (in millions of dollars)—Continued NEW OBLIGATIONAL AUTHORITY Description 1964 1965 1966 BY EXPENDITURES 1964 actual 1965 1966 ADMINISTRATIVE BUDGET FUNDS—Continued 409 General resource surveys and administration: Department of the Interior Total, natural resources ; 500 COMMERCE AND TRANSPORTATION 501 Aviation: Department of Commerce Federal Aviation Agency Other independent agencies: Civil Aeronautics Board Total 501 502 Water transportation: Department of Commerce Department of Defense—Civil Treasury Department Other independent agencies: Saint Lawrence Seaway Development Corporation __ 505 Postal service: Post Office Department 506 Advancement of business: Department of Commerce _ Department of the Interior Other independent agencies: Small Business Administration Total 506 507 Area redevelopment: Funds appropriated to the President Department of Commerce Housing and Home Finance Agency Other independent agencies: Federal Development Planning Committees for Alaska Federal Reconstruction and Development Planning Commission for Alaska 86 73 92 84 2,546 2,839 2,896 2,478 2,735 2,691 * * * 813 730 729 751 781 750 88 87 84 84 87 84 901 817 813 835 868 834 331 352 * 417 347 8 458 306 2 350 331 3 371 326 6 397 1 1 . 695 770 813 658 705 728 42 40 40 39 43 42 719 756 858 578 718 714 248 20 277 304 3 267 2 296 17 311 7 98 152 20 133 243 -195 366 430 327 401 556 124 30 145 4 73 332 69 300 85 145 115 * * * nd of table, p. 151. 400 * * * 176 Total 507 See fo 95 365 Total 502 503 Highways: Department of Commerce 76 77 401 * * 401 385 261 142 THE BUDGET FOR FISCAL YEAR 1966 Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES FUNCTION AND AGENCY (in millions of dollars)—Continued EXPENDITURES NEW OBLIGATIONAL AUTHORITY Description 1964 1965 BY 1964 1966 1965 1966 ADMINISTRATIVE BUDGET FUNDS—Continued 508 Regulation of business: Department of Commerce Department of Justice Other independent agencies: Civil Aeronautics Board _ Federal Communications Commission. Feder al Maritime Commission Federal Trade Commission Interstate Commerce Commission Securities and Exchange CommissionTotal 508 Total, commerce and transportation. 550 HOUSING AND COMMUNITY DEVELOPMENT 551 Aids to private housing: Funds appropriated to the President Housing and Home Finance Agency Other independent agencies: Federal Home Loan Bank Board Total 551 552 Public housing programs: Housing and Home Finance Agency 553 4 7 5 7 5 7 4 7 5 7 4 7 10 16 3 12 25 14 11 17 3 13 27 15 11 17 3 14 27 17 10 17 3 12 24 14 11 17 3 13 26 15 11 18 3 13 27 17 90 98 102 91 96 101 2,989 2,988 3,354 3,002 3,372 2,804 322 6 207 60 -347 -672 6 -513 ~-~Z4o -313 -335 322 213 60 -595 -985 -843 212 230 248 149 221 236 24 1,549 403 306 406 509 * * * * * * * * * * 1 1 1 1 2 3 11 1 * 2 Urban renewal and community facilities: Housing and Home Finance Agency 555 Aids to National Capital area: Other independent agencies: Commission of Fine Arts National Capital Housing Authority. _ National Capital Planning Commission __ _ National Capital Transportation Agency Interstate Commission on the Potomac River Basin District of Columbia Total 555 - - _ Total, housing and community development See footnotes at end of table, p. 151. 1 * * 93 * 78 99 * 57 * 76 * 103 95 80 111 59 79 107 653 2,071 822 -80 -280 10 143 THE FEDEiRAL PROGRAM BY FUNCTION Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES FUNCTION AND AGENCY (in millions of dollars)—Continued Description NEW OBLIGATIONAL AUTHORITY BY EXPENDITURES 1964 1965 1966 1964 1965 1966 1,850 2,157 2,591 1,671 1,792 2,190 9 354 10 634 10 675 9 306 9 439 10 515 2 3 1 3 * * * * 6 6 7 6 6 7 22 2 1 26 2 28 2 22 2 1 26 2 28 2 * * * * * * 393 681 725 345 484 565 2,946 3,238 3,500 2,994 3,002 3,499 785 1,500 347 1,346 70 313 20 354 20 402 21 308 56 353 57 402 145 168 267 136 160 253 14 17 14 \7 527 556 706 466 583 728 5,716 7,417 9,022 5,475 6,208 8,328 407 488 1,765 404 408 971 ADMINISTRATIVE BUDGET FUNDS—Continued 650 HEALTH, LABOR, AND WELFARE 651 Health services and research: Department of Health, Education, and Welfare 652 Labor and manpower: Department of the Interior __ Department of Labor Other independent agencies: Equal Employment Opportunity Commission Federal Coal Mine Safety Board of Review Federal Mediation and Conciliation Service _ _ _ National Commission on Technology, Automation, and Economic ProgressNational Labor Relations Board National Mediation Board President's Advisory Committee on Labor-Management Policy Total 652 653 Public assistance: Department of Health, Education, and Welfare 655 Economic opportunity programs: Funds appropriated to the President 659 * Other welfare services: Funds appropriated to the President Department of Agriculture Department of Health, Education, and Welfare Other independent agencies: Railroad Retirement Board Total 659 Total, health, labor, and welfare 700 EDUCATION 701 Assistance for elementary and secondary education: Department of Health, Education, and Welfare See footnotes at end of table, p. 151. 144 THE BUDGET FOR FISCAL YEAR 1966 Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY FUNCTION AND AGENCY (in millions of dollars) —Continued NEW OBLIGATIONAL AUTHORITY Description 1964 1965 1966 EXPENDITURES 1964 1965 1966 ADMINISTRATIVE BUDGET FUNDS—Continued 702 Assistance for higher education: Department of Health, Education, and Welfare .... Housing and Home Finance Agency 184 300 681 410 1,184 164 219 199 229 517 265 484 1,091 1,184 383 428 782 353 420 530 310 325 405 21 24 * 27 * 21 24 * 26 * 137 90 358 98 462 109 107 89 195 94 338 105 38 2 37 28 22 2 32 36 285 519 624 241 347 505 1,530 2,519 4,103 1,339 1,509 2,663 800 VETERANS BENEFITS AND SERVICES 801 Veterans service-connected compensation: Veterans Administration. _ _ 2,158 2,173 2,174 2,158 2,173 2,100 802 Veterans non-service-connected pensions: Veterans Administration 1,733 1,833 1,903 1,743 1,834 1,827 218 196 37 113 -8 -131 -43 -783 218 196 37 113 -139 -826 1,217 1,305 1,334 1,229 1,280 1,315 Total 702 703 Assistance to science education and basic research: Other independent agencies: National Science Foundation __ _ _ _ 704 Other aid to education: Legislative Branch Executive Office of the President Department of Health, Education, and Welfare Department of the Interior Other independent agencies: National Capital Planning Commission Smithsonian Institution Total 704 Total, education _ __ __ 803 Veterans readjustment benefits: Housing and Home Finance Agency Veterans Administration. . Total 803 804 Veterans hospitals and medical care: Veterans Administration S e e f o o t n o t e s a t e n d of t a b l e , p . 1 5 1 . 145 THE FEDERAL PROGRAM BY FUNCTION Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY FUNCTION AND AGENCY (in millions of dollars)—Continued NEW OBLIGATIONAL AUTHORITY Description 1964 1965 1966 EXPENDITURES 1966 1965 1964 ADMINISTRATIVE BUDGET FUNDS—Continued 805 Other veterans benefits and services: Department of Defense—Civil Department of Labor Veterans Administration Other independent agencies: American Battle Monuments Commission _ __ Historical and memorial commissions- 15 * 190 2 * * 249 235 208 5,699 5,492 5,383 4,623 11,200 11,500 10,666 11,200 11,500 89 75 82 88 75 82 11 12 12 11 12 12 10,765 11,287 11,594 10,765 11,286 11,594 127 140 148 126 155 154 67 76 90 66 76 89 * * * * * • 67 77 90 66 77 89 19 1 2 * 21 1 2 1 23 1 2 * 19 1 2 * 20 2 2 1 22 1 2 * 235 2 * 2 * 263 260 251 5,589 5,767 10,666 852 Interest on refunds of receipts: Treasury Department 853 Interest on uninvested funds: Treasury Department . _ _. Total 805 Total, veterans benefits and services 850 INTEREST 851 Interest on the public debt: Treasury Department Total, interest 900 GENERAL GOVERNMENT 901 Legislative functions: Legislative Branch._ __ _ 902 Judicial functions: The Judiciary __ Other independent agencies: Indian Claims Commission Total 902 903 Executive direction and management: Executive Office of the President. _ Funds appropriated to the President Treasury Department General Services Administration Other independent agencies: Federal Radiation Council Total 903 904 Central fiscal operations: Treasury Department Other independent agencies: General Accounting Office Renegotiation Board Tax Court of the United States __ Total 904 See footnotes at end of table, p. 151. -10 750-000 0—65 11 1 12 1 220 14 15 1 242 11 1 235 250 2 2 * 2 * 23 25 17 22 25 26 735 814 834 742 790 802 46 3 2 47 3 2 47 2 2 45 3 2 47 3 2 47 2 2 785 866 886 791 842 853 146 THE BUDGET FOR FISCAL YEAR 1966 Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES FUNCTION AND AGENCY (in millions of dollars)— Continued EXPENDITURES NEW OBLIGATIONAL AUTHORITY Description 1964 actual 1965 1966 estimate estimate BY 1964 1965 1966 estimate estimate actual ADMINISTRATIVE BUDGET FUNDS—Continued 905 General property and records management: General Services Administration Other independent agencies: Central Intelligence Agency Total 905_ 906 606 593 609 576 597- 595 * 1 1 606 593 609 576 598 596 63 57 54 63 55 49 110 116 120 111 116 120 173 174 174 174 171 169 338 12 375 14 367 15 321 12 360 13 370 14 * * * * Central personnel management: Department of Labor Other independent agencies: Service Commission. Civil ._ Total 906 908 Protective services and alien control: Department of Justice._ _. Treasury Department . Other independent agencies: Administrative Conference of the United States Civil Service Commission Commission on Civil Rights Subversive Activities Control Board ._ Total 908 910 1 1 * 1 ) 1 1 1 1 * 2 * 1 * 1 * 2 * 352 391 385 335 376 388 9 20 42 35 78 8 49 52 87 51 6 78 39 53 4 19 48 40 77 1 1 54 30 88 14 7 71 42 53 * * * * * * Other general government: Legislative Branch._ __ Funds appropriated to the President .._ Department of Defense—Civil 1... Department of the Interior Treasury Department - Other independent agencies:. Advisory Commission on Intergovernmental Relations Alaska Temporary Claims Commission Commission on International Rules of Judicial Procedure _ _ United States-Puerto Rico Commission on the Status of Puerto Rico Historical and memorial commissions. Total, 910 Total, general government. _ Allowance for Appalachia Allowance for contingencies Interfund transactions 2 . . * * * * * * * * * * * * * * 185 197 227 189 173 187 2,318 2,462 2,546 2,280 2,417 2,462 365 150 650 -664 3 100 -833 107 400 -600 97,684 97,481 99,687 Total, administrative budget funds. 101,103 107,262 106,417 See f o o t n o t e s at end of table, p. 151. * 147 THE FEDERAL PROGRAM BY FUNCTION Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY FUNCTION AND AGENCY (in millions of dollars)—Continued NEW OBLIGATIONAL AUTHORITY Description 1964 1964 1966 1965 EXPENDITURES 1966 1965 TRUST FUNDS 050 NATIONAL DEFENSE 051 Department of Defense—Military: Department of Defense—Military: Army Navy Air Force Total 051 057 Military assistance: Funds appropriated to the President 058 Atomic energy: Atomic Energy Commission 059 Defense-related activities: Treasury Department __ * 5 * 5 * * 5 * 5 * * 5 * * 5 5 5 5 5 5 1,149 1,045 1,139 481 805 976 1 1 * 1 1 * * 5 * 1,154 1,052 1,145 487 811 982 * 2 104 53 * * 1 -124 * 1 3 171 * 8 48 * 2 10 56 12 107 54 -120 245 1 1 * 1 19 * 1 7 2 6 * 2 11 * 2 11 2 20 8 8 14 14 * * * * * * * * * * * * * * * * * * Total, international affairs and finance 57 32 115 62 -106 258 250 SPACE RESEARCH AND TECHNOLOGY 251 Space research and technology: National Aeronautics and Space Administration _ _ * * * * * * Total, national defense 150 INTERNATIONAL AFFAIRS AND FINANCE 151 Conduct of foreign affairs: Department of Justice Department of State _ Treasury Department _ Foreign Claims Settlement Commission.. Total 151 152 Economic and financial assistance: Funds appropriated to the President Department of Commerce Department of State Total 152 153 Foreign information and exchange activities: Department of State United States Information Agency Total 153 See footnotes at end of table, p. 151. 1 72 * 148 THE BUDGET FOR FISCAL YEAR 1966 Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY FUNCTION AND AGENCY (in millions of dollars)—Continued Description EXPENDITURES NEW OBLIGATIONAL AUTHORITY 1964 1966 stimate 1965 1964 1966 1965 TRUST FUNDS—Continued 350 AGRICULTURE AND AGRICULTURAL RESOURCES 351 Farm income stabilization: Department of Agriculture 352 Financing farming and rural housing: Department of Agriculture Farm Credit Administration Total 352 1 468 -3 589 -3 460 468 585 457 354 Agricultural land and water resources: Department of Agriculture 1 1 1 1 1 1 355 Research and other agricultural services: Department of Agriculture 28 30 37 27 30 37 Total, agriculture and agricultural resources (not including Food for Peace) *_ 28 31 38 496 615 495 37 2 22 2 23 1 37 2 31 2 23 2 38 23 24 39 33 25 402 Forest resources: Department of Agriculture 27 28 29 23 23 28 403 Mineral resources: Department of the Interior 1 1 1 1 1 1 404 Fish and wildlife resources: Department of the Interior 2 2 2 2 2 2 405 Recreational resources: Department of the Interior 1 16 16 2 5 11 98 99 86 71 73 109 168 169 157 137 137 175 400 NATURAL RESOURCES 401 Land and water resources: Department of Defense—Civil Department of the Interior Total 401 409 General resource surveys and administration: Department of the Interior Total, natural resources 500 COMMERCE AND TRANSPORTATION 501 Aviation: Federal Aviation Agency See footnotes at end of table, p. 151. * 149 THE FEDERAL PROGRAM BY FUNCTION Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY FUNCTION AND AGENCY (in millions of dollars)—Continued NEW OBLIGATIONAL AUTHORITY Description 1964 1966 1965 EXPENDITURES 1964 1965 1966 TRUST FUNDS—Continued 502 Water transportation: Department of Commerce Treasury Department Total 502 503 Highways: Department of Commerce 506 Advancement of business: Department of Commerce Federal Deposit Insurance Corporation.. Total 506 23 * 12 * 34 * 14 * 18 * 22 * 23 12 34 14 18 22 3,706 3,830 3,931 3,647 4,104 3,876 4 4 4 4 -183 4 -194 4 -212 4 4 4 -179 -190 -208 * * 508 Regulation of business: Federal Communications Commission.— Total, commerce and transportation. 550 HOUSING AND COMMUNITY DEVELOPMENT 551 Aids to private housing: Housing and Home Finance Agency Federal Home Loan Bank Board Total 551 555 Aids to National Capital area: National Capital Housing Authority National Capital Planning Commission.. District of Columbia. Total 555 Total, housing and development community 650 HEALTH, LABOR, AND WELFARE 651 Health services and research: Department of Health, Education, and Welfare 652 Labor and manpower: Department of Labor. ... ... 653 Public assistance: DeDartment of Health, Education, and Welfare... See footnotes at end of table, p. 151. 3,733 3,847 3,969 3,482 3,932 3,690 62 111 162 -37 1,572 48 -250 178 150 62 HI 162 1,535 -202 328 * 389 458 * * 355 2 1 432 * * 368 455 368 389 458 355 435 455 430 500 620 1,889 233 783 1 * * 1 1 1 850 606 606 426 436 526 * * * * * 150 THE BUDGET FOR FISCAL YEAR 1966 Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY FUNCTION AND AGENCY (in millions of dollars)—Continued Description NEW OBLIGATIONAL AUTHORITY 1964 1965 esti a e EXPENDITURES 1964 1966 1966 1965 actu TRUST FUNDS—Continued 654 Retirement and social insurance: The Judiciary Department of Health, Education, and Welfare Department of Labor Department of State Civil Service Commission. Railroad Retirement Board Total 654 1 1 1 * * * 17,255 3,442 9 2.456 1,208 17,412 3,404 9 2,660 1,291 19.608 3,376 10 2,737 1,387 16,625 3.281 7 1.254 1.139 17,484 2,900 8 1,372 1,185 20,397 2,819 9 1,548 1,248 24,370 24.777 27,119 22,307 22,950 26.022 659 Other welfare services: Department of Health, Education, and Welfare * 25.383 27,725 22,733 23,386 26,549 * * * * * * 2 * 2 * 2 * 2 * 2 * 2 * Total 704 2 2 2 2 2 2 Total, education 2 2 2 2 2 2 7 713 7 714 7 714 7 659 7 634 7 507 * * * * Total, health, labor, and welfare._ _ 25,221 700 703 EDUCATION Assistance to science education and basic research: National Science Foundation 704 Other aid to education: Legislative Branch Smithsonian Institution __ 800 VETERANS BENEFITS AND SERVICES 805 Other veterans benefits and services: Department of Defense—Civil _ Veterans Administration American Battle Monuments Commission Total, veterans benefits and services. 900 GENERAL GOVERNMENT 904 Central fiscal operations: Treasury Department General Accounting Office Tax Court of the United States. _ Total904 General property and records management: General Services Administration * 719 721 721 666 641 514 17 * * 18 * * 19 * * 18 * * 19 * * 19 * * 17 18 19 18 19 19 * 2 * * * 905 See footnotes at end of table, p. 151. 151 THE FEDERAL PROGRAM BY FUNCTION Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY FUNCTION AND AGENCY (in millions of dollars)—Continued NEW OBLIGATIONAL AUTHORITY Description 1964 1965 1966 EXPENDITURES 1964 actua 1965 1966 TRUST FUNDS—Continued 906 Central personnel management: Department of Labor, _ . 908 __ * * * * * * * * * * Protective services and alien control: * Department of Justice 910 * Other general government: Treasury Department _ . _ _ United States-Puerto Rico Commission on the Status of Puerto Rico Historical and memorial commissions Total, 910 Total, general government Deposit funds Interfund transactions * * * * * * * * * * * * 18 21 20 18 19 20 -567 -521 -47 -579 30 -599 28,885 29,045 32,898 * 2 Total trust funds _ _ _ __ _ _ 31,533 * 31,757 34,512 *Less than one-half million dollars. 1 See general notes, page 4, paragraph 4. 2 Interfund transactions shown as deduct lines above are as follows: Administrative Budget 1964 Interest on loans to Government-owned enterprises: Commodity Credit Corporation Expansion of defense production Export-Import Bank of Washington Housing and Home Finance Agency Panama Canal Company Small Business Administration Veterans Administration St. Lawrence Seaway Development Corporation Other Fees and other charges: Public enterprise funds Panama Canal Company for annuity payment and cost of Canal Zone Government Total, administrative budget actual 199 154 34 152 11 27 49 3 19 1966 1965 estimate estimate 431 126 14 140 11 31 37 4 22 310 15 11 134 12 38 26 4 31 15 17 18 664 833 600 7 7 8 8 9 9 Trust Funds Payments to employees' retirement fund receipts: District of Columbia government District of Columbia employees' pay deductions Payments between funds: FOASI fund from Federal disability insurance fund Railroad retirement account from: FOASI trust fund «. Unemployment trust fund Federal disability insurance fund Civil service retirement and disability fund to Foreign Service retirement fund Unemployment trust fund from railroad retirement account National Park Service from District of Columbia Total, trust funds 3 3 3 403 47 19 399 75 20 411 82 20 35 50 15 1 50 15 521 579 599 PART 5 THE FEDERAL PROGRAM BY AGENCY 153 EXPLANATION OF MEANS OF FINANCING AGENCY ACTIVITIES TYPES OF FUNDS Agency activities are financed both through administrative budget funds and through trust funds. The administrative budget covers Federal (Government-owned) funds which are of four types. The general fund is credited with receipts not earmarked by law, and is charged with expenditures payable 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 category of trust revolving funds which carry on a cycle of business-type operations. The budget also includes (in association with the trust funds) deposit funds, which are not used for Government programs but are essentially suspense or agent accounts and include some transactions of certain Government-sponsored enterprises. The following discussion is not generally pertinent to them. NEW OBLIGATIONAL AUTHORITY AND OBLIGATIONS New obligational 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 new obligational authority (NOA). Such authority is related to the obligations expected to be incurred during the year for most accounts. In some cases, especially construction, research, or procurement, NOA is requested and granted to finance the full cost of each project at the time it is started. New obligational authority usually takes the form of appropriations which permit obligations to be incurred and expenditures to be made. 154 THE FEDERAL PROGRAM BY AGENCY 155 Some is in the form of contract authorizations which permit obligations, but require an appropriation "to liquidate" in order to permit expenditures in payment of the obligations. Any part of NOA which is not used for obligations during the period for which it is made available by the Congress expires, and thus cannot be used at a later time. 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 NOA permits the use of borrowed money to incur obligations and make expenditures. Authority to use Treasury borrowing is an authorization to spend from public debt receipts; authority to borrow directly from private enterprise, granted only to certain Government corporations, is called an authorization to spend from corporate debt receipts. Most new obligational authority of administrative budget funds is granted year by year (current authorizations). Under certain laws, some new obligational authority in the administrative budget and most NOA in the trust funds becomes available from time to time without further action by the Congress (permanent authorizations). The amount of new obligational 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. Obligations incurred.—Following the enactment of new obligational authority, 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; approval of agreements to make loans; and other commitments requiring the payment of money. EXPENDITURES AND BALANCES Expenditures.—Obligations are liquidated by the issuance of checks, disbursement of cash, the maturing of interest coupons in the case of some bonds, and, in a few special cases, by issuance of bonds or notes (or increases in the redemption value of bonds outstanding) in lieu of checks. Retirement of debt and purchase of the Government's own securities are not counted as expenditures (or as obligations incurred). Expenditures during any fiscal year may be payments of obligations incurred in prior years or in the same year. The expenditures therefore flow in part from balances of prior year NOA and in part from NOA provided for the year in which the money is spent. For three types of funds—public enterprise, intragovernmental, and trust revolving funds—expenditures are stated net of receipts. If 156 THE BUDGET FOR FISCAL YEAR 1966 receipts exceed expenditures the difference shows as a minus entry in the expenditure tables. 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 expenditures. Expenditures of the individual accounts and funds include various payments which are credited to receipt accounts. For example, a number of public enterprise funds pay, to the general fund, interest on the capital they have received from the Government. Interfund transactions of this type within the administrative budget are deducted at the end of the expenditure tables (and identical deductions are made at the end of the receipt tables). Similar interfund deductions are made in the trust fund tables for those payments made by one trust fund to another. 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 expenditure. 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 to cover the subsequent expenditure in payment of such obligations. 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. Therefore, a change in the amount of new obligational authority for a given year does not necessarily change either the obligations incurred or the budget expenditures in that same year by an equal amount. A change in new obligational authority in any one year may spread its effect over obligations for 2 or more years and over expenditures for even a longer period. ESTIMATES FOR 1965 AND 1966 Data for 1965.'—Congress has already acted on appropriations and other new obligational authority for fiscal year 1965, but additional supplemental amounts are estimated to be required in certain cases. Where the word "enacted" is used in the budget in reference to 1965, as in tables 4 and 5, the amounts are those already voted by Congress (including the amounts likely to be available in the case of appropriations made in an indefinite amount) or the expenditures thereunder, unless otherwise indicated. Where the word "estimate" is used, the amounts include both those which are enacted and needed supplemental. Certain standard footnotes are used in the following THE FEDERAL PROGRAM BY AGENCY 157 table to distinguish the status of proposed items for 1965 in this part of the budget. (NOA is identified for each item, as are expenditures for items other than those for civilian and military pay increases. Expenditures from pay increase items are identified in the agency totals, but are merged with expenditures from amounts already enacted in the individual lines.) Data for 1966.—This budget is complete as to the estimates for 1966. The budget appendix generally includes the proposed appropriation language for the various items which are identified in the budget. However, in some instances—mainly cases of proposed new legislation—estimates are included in the budget, but formal trans mittal of the proposed text of the appropriation language (or other proposal) will be made later. In certain tables, these items for later transmittal and expenditures therefrom are identified in separate columns, or by special footnotes, as in the following table. In tables where there is no such specific identification, the estimate for 1966 is comprehensive, whether or not the necessary appropriation language is formally transmitted at this time. Changes from 1965 to 1966. —The table which follows gives data for 1964, 1965. and 1966, with figures on increases or decreases of 1966 compared with 1965. These changes include certain mandatory cost changes as well as proposals of the President with respect to programs. Special allowances.-—It is likely that some additional needs, not now known, will arise during the remainder of 1965 and 1966, and supplemental proposals will be transmitted to Congress when required to finance them. Congress may also enact legislation which is not specifically provided for in the Budget, either because it is not proposed by the President, or because its cost in either of the 2 years is relatively small. Furthermore, some legislative proposals may involve all or a number of agencies (as for the Appalachia program for 1966). In such cases it is not feasible to show individual items under the agencies concerned. Lump-sum allowances are included in the summary tables of the budget to cover such items not yet enacted into law. Annexed budgets.—The expenditures and revenues of seven selfsupporting Government agencies or programs were omitted from budget documents prior to 1965, except that partial figures on three of them have been included in the trust fund and consolidated cash totals (but with no supporting data in the appendix). Without making any changes in the totals, a memorandum section covers these activities at the end of part 5, and some details on them appear in the appendix. Like the budgets for the legislative branch and the judiciary, the annexed budgets have not been reviewed by the President but are included in the amounts submitted by the agencies (except for one case, which is noted, where Bureau of the Budget estimates are used because no agency estimates were submitted). Ox 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars) This tabulation shows, for each appropriation and fund account, among the administrative budget funds, information on new obligational authority (called NOA herein) and expenditures. Explanatory sentences relate primarily to NOA, and usually to increases or decreases for 1966. Functional code numbers are cross references to the lines in table 14 (pp. 138 to 151) where the figures are summarized. The NOA in this tabulation takes account of certain transfers between appropriations which are set forth in the Budget Appendix. Congressional action in the appropriation process occasionally is in the form of a limitation on the use of a trust fund or other fund, or an appropriation to liquidate contract authorizations; such items which do not involve NOA are also included here in parentheses, but are not added into the totals. NOA items in the administrative budget are current authorizations except where otherwise indicated. A separate section of this tabulation shows similar information on the trust funds. Smaller funds are grouped in that section. Accounts appearing there are permanent authorizations unless otherwise noted. Account and functional code 1964 enacted 1965 estimate 1966 estimate Increase or decrease s Explanation of NOA requests LEGISLATIVE BRANCH SENATE General and special funds: Compensation of the Vice Presi- NOA dent and Senators 901 Exp. 2,449 Mileage of President of the Senate NOA and of Senators 901 Exp. 2,471 2,471 B 406 3,286 58 51 58 58 Expense allowances of the Vice NOA President, and majority and Exp. minority leaders 901 14 14 14 Salaries, officers and employees NOA 901 Exp. 20,653 Office of the Legislative Counsel NOA of the Senate 901 Exp. 247 409 GO O co 14 OJ OS 20,857 2,857 23,794 80 253 301 7 B 19,448 B41 244 (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 fiscal year.) Contingent expenses of the Senate: Senate policy committees. _ _ 901 NOA Exp. 351 216 Automobiles and maintenance NOA 901 Exp. 38 Furniture 901 NOA 31 Exp. 20 Inquiries and investigations_901 NOA 4,026 Exp. 4,041 901 NOA 47 Exp. 45 901 NOA 17 Exp. 20 Folding documents Mail transportation Miscellaneous items _ _ 901 NOA 64 63 256 201 15 Payments to estates and widows NOA of deceased Members of the Senate 901 Exp. 12 1 43 f 31 31 4,276 B 502 ! 4,777 37 2 1 39 B 2,661 B 123 2,674 901 NOA Exp. Stationery (revolving fund) _901 NOA Exp. Communications 901 NOA Exp. Proposed for separate transmittal, ci 395 17 2,609 B i 40 32 Exp. Postage stamps 351 43 B -1 17 i 2,779 62 62 256 256 15 15 22 22 22 vilian pay increase supplemental. -5 -22 > ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code Increase or 1966 1965 Explanation of NOA requests (-) LEGISLATIVE BRANCH—Continued SENATE—Continued General and special funds—Continued Senate restaurant fund 901 Exp. Recording studio revolving fund Exp. 901 Joint items: Joint Committee on Reduction NOA of Nonessential Federal Expenditures 901 Exp. 3 -159 Exp. 209 Joint Committee on Atomic NOA Energy 901 Exp. 311 235 | 30 266 311 1 37 348 131 ] 20 151 B B 3 1 3 259 124 B CO OS Oi 111 265 Joint Committee on Inaugural NOA Ceremonies of 1965 901 Exp. Total, Senate 35 30 235 Joint Committee on Printing NOA 901 Exp. 30 1 30 NOA Joint Economic Committee_901 w w d o -24 NOA 31,683 Exp. 29,914 32,393 1 4,069 34,430 B -265 36,667 205 34,625 195 HOUSE OF REPRESENTATIVES Compensation of Members 901 NO A 10,622 10,622 j 1,759 14,139 1,758 B Exp. 10.563 Mileage of Members and expense NOA allowance of the Speaker 901 Exp. 200 195 Salaries, officers and employees NOA 901 8,385 Exp. Members' clerk hire 901 NOA Exp. Contingent expenses of the House: Furniture 901 NOA Exp. 21,300 44 21,500 1 3,200 30,500 5,800 B 21.068 270 196 340 340 3,817 4,123 223 223 901 NOA Exp. Reporting hearings 901 NOA Exp. 223 213 Special and select committees NOA 901 Exp. 3,966 Office of the Coordinator of In- NOA formation 901 Exp. 122 B 10,137 7,988 Miscellaneous items 901 NOA Exp. 200 8,837 | 1,256 B 3,725 2,994 Telegraph and telephone 200 3.340 3,966 1 B 575 4,525 118 1 »18 136 1 115 2,185 1.669 2,400 o o w -16 o 2,400 Proposed for separate transmittal, ci vilian pay increase supplemental. 306 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 Account and functional code 1966 Increase or (-) Explanation of NOA requests LEGISLATIVE BRANCH—Continued HOUSE OF REPRESENTATIVES—Con. General and special funds—Continued Contingent expenses of the House—Con. Stationery (revolving fund) _901 NOA Exp. 1,308 1,043 1,046 Attending physician's office. 901 NOA Exp. 17 16 17 19 274 224 229 229 251 | 25 270 21 | B4 27 11 1 l 12 10 11 1 12 9 f Postage stamps 901 NOA Exp. Folding documents 901 NOA Exp. Revision of laws 901 NOA Exp. Speaker's automobile Majority 901 NOA Exp. leader's automobile NOA 901 Exp. Minority leader's automobile NOA 901 Exp. 251 1,046 d 2 -6 B 213 21 20 11 B 10 10 10 11 l B 2 o n s New edition of the United States NOA Code 901 Exp. Payments to widows and heirs NOA of deceased Members of Con- Exp. gress 901 New edition of the District of NOA Columbia Code 901 Exp. 55 House recording studio revolving Exp. fund 901 -32 344 20 Joint Committee on Defense NOA Production 901 Exp. 70 B -45 100 -100 344 } 46 390 20 1 120 96 65 1 5 i 80 10 37 50 13 605 143 B 299 Joint Committee on Immigra- NOA tion and Nationality Policy. _ 901 Exp. Capitol Police Board 45 20 46 Capitol Police: General expenses -150 158 158 House of Representatives restau- Exp. rant fund 901 Joint items: Joint Committee on Internal NOA Revenue Taxation 901 Exp. 150 O B4 17 o I B 60 901 NOA Exp. 37 38 901 NOA 166 Exp. 141 B 331 [ 131 o Proposed for separate transmittal, civilian pay increase supplemental. CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 Account and functional code 1966 Increase or 0& Explanation of NOA requests (-) LEGISLATIVE BRANCH—Continued HOUSE OF REPRESENTATIVES—Con. General and special funds—Continued Education of Pages Penalty mail costs 80 1 6 901 NOA 80 Exp. 84 901 NOA Exp. 4,867 4,867 4,723 6,037 13 13 Statements of appropriations.901 NOA Exp. 13 13 Advances and reimbursements Exp. 1 Total, House of Represent- NOA atives. Exp. 58,654 B 1 86 1,314 i 901 55,654 59,528 ) 7,032 f 62,793 B 75,731 9,171 71,892 9,099 ARCHITECT OF THE CAPITOL Office of the Architect of the Capitol: Salaries. __ _ 901 NOA Oi 442 508 1 B40 Contingent expenses Exp. 423 553 901 NOA Exp. 50 41 50 46 f 600 52 Increase is for additional new positions and changes under the Classifica- 597 44 50 50 4 tion Act. This item is for unforeseen expenses, including emergency snow removal. Capitol buildings and grounds: Capitol buildings 901 NOA Reappropriation 1,444 1,624 1 A 130 B 10 66 1.831 A 65 1,640 -190 1.641 1 -190 NOA Exp. 82 1,546 Extension of the Capitol: Contract authorization (indefinite) 901 NOA Liquidation of contract authorization. Exp. 125 (700) 509 (125) 642 29 (-125) -613 The 1966 requirement provides for painting the dome and the exterior of the west central section of the Capitol Building, offset by decreases for nonrecurring construction items. Capitol grounds 901 NOA Exp. 480 476 740 756 638 638 -102 -118 The decrease is mainly because 1965 included nonrecurring items of resurfacing the Capitol Plaza and Northeast and Southeast Drives. Senate Office Buildings 901 NOA 2,560 2,414 A 25 2,469 -148 Supplemental required in 1965 is for wage board pay increases. The 1966 requirements are reduced mainly because 1965 included a reappropriation for nonrecurring items of fire protection. Reappropriation NOA Exp. 2,323 153 2.759 A 22 Old Senate Chamber and Old Supreme Court Chamber in the Capitol: Planning for restoration 901 NOA Exp. 38 2 35 Restoration. .901 NOA Exp. Legislative garage 901 NOA 51 Exp. 54 A B 52 l 52 Al A ft) > F h3 ftl 2,470 | -308 o a -35 < > o 700 525 700 525 1 54 1 1 54 1 This increase is to carry out restoration work for which drawings and specifications have been prepared under funds provided by Congress. 3 o Supplemental required in 1965 is for wage board pay increases. 1 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. o Or ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 id fui.tional 1966 1965 Increase or Explanation of NOA requests (-) LEGISLATIVE BRANCH—Continued ARCHITECT OF THE CAPITOL—Con. General and special funds—Continued House Office Buildings 901 NOA Exp. Acquisition of property, construction, and equipment, additional House Office Building: Contract authorization (per- NOA manent, indefinite) 901 Liquidation of contract authorization. Exp. 1,783 1,698 3,230 3,256 4,090 4,065 860 809 -3,500 3,500 (20,000) 10,987 (8,000) 20,307 901 NOA Exp. 2,223 2,029 2,665 2 Ml 2,752 2,752 87 85 Expansion of facilities, Capitol Exp. Power Plant 901 632 1,740 1,355 -385 Extension of additional Senate Exp. Office Building site 901 (7,300) (-700) 9,275 -11,032 5 -5 for Exp. 901 113 30 -30 Changes and improvements Exp. Capitol Power Plant 901 179 24 -24 Additional office the IL3. Senate- building © W 4,800 Capitol Power Plant The increase is mainly to provide for staffing the Rayburn House Office Building on a full-year basis, presently on a part-year basis. (Appropriations are to liquidate contract authorizations already granted.) Principal increases are to provide for additional electrical energy and additional fuel. Furniture and furnishings, ad- Exp. ditional Senate Office Building 901 15 74 -74 Remodeling, Senate Office Build- Exp. ing 901 1 1 -1 Library buildings and grounds: Structural and mechanical NOA care 901 Reappropriation NOA Exp. Furniture and furnishings 901 NOA Exp. Additional library building Exp. -1,916 413 3,582 2,740 -842 The 1966 requirements are reduced mainly because 1965 included nonrecurring items of heating and cooling improvements, bookstack lighting and other nonrecurring improvements; also a reappropriation for fire detection items and other miscellaneous improvements. 220 229 274 274 54 45 Increase is primarily for steel cases, trays and other equipment for Card Division and for office equipment for the Office of the Secretary. 2,382 | 1,889 180 231 -10 10 901 Exp. Total, Architect of the Capitol. NOA 879 3,400 17,659 23,150 18,017 ) M56 B 75 38,599 A88 14,146 -4,102 o a 26,465 1-12,154 A68 I w BOTANIC GARDEN Salaries and expenses 901 NOA Exp. Relocation of greenhouses Total, Botanic Garden A B 901 Exp. NOA Exp. 456 515 500 559 1 10 456 516 500 569 467 467 -10 467 467 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. -33 -92 -33 -102 Requirements are less because 1965 included nonrecurring improvements to main conservatory and its mechanical equipment. a ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 1966 decrease (-) 00 Explanation of NOA requests LEGISLATIVE BRANCH—Continued LIBRARY OF CONGRESS d General and special funds—Continued Salaries and expenses 704 NOA 9,726 Exp. 10,366 Copyright office: Salaries and ex- NOA penses 704 Exp. 1,781 1,772 10,603 1 B 416 11,025 11,955 913 11,798 773 Provides for increased activity in acquisition of materials by purchase, gift, exchange, and other means; in organization of the collections, and in reader and reference services. 1,828 1 B 86 1,904 2,021 107 Provides for workload increases in most of the activities of the office. 2,006 102 2,245 B 173 2,388 2,524 106 2,507 119 4,103 293 3,988 296 I f Legislative Reference Service: Sal- NOA aries and expenses 704 Exp. 2,119 Distribution of catalog cards: NOA Salaries and expenses 704 Exp. 3,042 Books for the general collections _ NOA 704 Exp. 670 670 800 130 627 711 800 89 Books for the law library 704 NOA Exp. 110 103 110 125 15 Objective will be to continue to improve the Library's coverage of law 125 125 Books for the blind: Salaries and NOA expenses 704 Exp. 1,900 2,446 B 14 2,202 2,101 2,909 2,189 I 3,704 1 B 106 3,692 1 i Continues to provide research and analysis, preparation of indexes and digests, and other reader and reference services. I Continued increase in sales activity is expected. Costs are generally recovered from sales income. Will continue to acquire research materials, foreign newspapers and periodicals, and materials in science and technology, and to preserve deteriorating materials. materials. 2,675 215 Estimate will allow procurement of braille books, more titles, and copies 2,613 411 of talking books and other improvements in service to the blind. OS Organizing and microfilming the NOA papers of the Presidents: Sal- Exp. aries and expenses 704 113 113 113 Preservation of American motion NOA pictures 704 Exp. 50 54 50 11 50 50 -27 Collection and distribution of Li- NOA brary materials (special foreign currency program) 704 Exp. 978 1,542 | B 6 1,530 2,279 731 2,270 740 -2 Indexing and microfilming the Exp. Russian Orthodox Greek Catholic Church records in Alaska. _ 704 Oliver Wendell Holmes devise fund NOA (permanent, indefinite, special Exp. fund) 704 115 933 113 Estimate provides for continuation of program to arrange, index, and microfilm Presidential papers in the Library's collections. 113 2 7 5 15 34 7 26 7 26 Estimate will allow continued conversion of paper prints and nitrate films to safety base film. Program utilizes surplus foreign currencies to acquire and distribute foreign library materials. Principal and interest on the fund will be used primarily to continue preparation of the history of the Supreme Court. O ntragovernmental fundss Exp. Advances and reimbursements o -10 704 Total, Library of Congress. __ NOA 20,504 Exp. 21,197 23,318 1 B 801 23,800 26,652 2,510 26,301 2,501 GOVERNMENT PRINTING OFFICE 3 O General and special funds: Printing and binding __901 NOA Exp. Office of Superintendent of Docu- NOA m e n t s : Salaries a n d expenses 910 Exp. 18,200 17,064 5,242 5,061 18,000 18,061 5,562 1 B 128 5,765 20,500 20,000 2,500 1,939 5,829 139 5.879 114 Appropriation covers all printing, binding, and distribution for the Congress, or as otherwise authorized by law. Estimate covers costs of services and sales functions. Receipts usually exceed costs of the sales functions and are deposited in the general fund of the Treasury. B Proposed for separate transmittal, civilian pay increase supplemental. CO ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 1966 Increase or Explanation of NOA requests LEGISLATIVE BRANCH—Continued 3 GOVERNMENT PRINTING OFFICEContinued General and special funds—Continued Selection of site and general plans NOA and designs of buildings 910 Exp. 2,500 2,300 Acquisition of site and construe- NOA tion of buildings 910 Exp. 200 -2,500 -2,100 The appropriation in 1965 provided initial funds for a modern printing plant. 44,787 14,178 44,787 14.178 The request provides for the acquisition of site and construction of the printing plant. -6,610 662 71,116 44,926 33,647 14,793 224,779 52,677 193,334 A 68 B 63 14.332 Intragovernmental funds: Government Printing Office re- NOA volving fund__ 910 Exp. 3,550 -1,044 Total, Government Printing NOA Office. Exp. 21,081 Total, Legislative Branch.... NOA 155,948 Exp. 26,992 151,512 -7,272 26,062 j B 128 18,854 159,818 M56 B 12,105 167,003 A 88 B 12.042 CO OS THE JUDICIARY SUPREME COURT OF THE UNITED STATES General and special funds: 902 NOA 1,588 Exp. 1,557 1,815 B 79 1,877 Printing and binding Supreme NOA Court reports _ _. _ _ _ _ _ _ _ 902Exp. 138 110 902 NOA Exp. i 1,938 44 1,931 54 138 143 138 138 -5 85 11 120 120 120 120 Care of the building and grounds NOA 902 Exp. 355 322 305 379 314 314 Automobile for the Chief Justice NOA 902 Exp. 7 7 8 8 8 8 Books for the Supreme Court.902 NOA Exp. 35 35 35 35 38 38 3 3 Total, Supreme Court of the NOA United States. Exp. 2,208 2,421 B 79 2,562 i 2,556 56 2,549 -13 398 50 445 i Salaries Miscellaneous expenses. 2,108 Estimate provides for salaries of the Chief Justice and 8 Associate Justices and all other officers and employees. Estimate covers costs of printing and binding advance opinions, preliminary prints and bound reports of the Court. Estimate allows for expenses as approved by the Chief Justice. 9 -65 Estimate covers work of the Architect of the Capitol in the care of Court facilities. Expenses are estimated to continue at current level. Estimate covers books and periodicals. Increase covers the increased cost of continuation material. > a COURT OF CUSTOMS AND PATENT APPEALS Salaries and expenses A B _ _902 NOA 388 Exp. 389 B 458 10 Estimate includes an additional clerical position for the Clerk's office, 458 13 and provision for within-grade salary advancements. Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. d ta o a ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 1966 to Increase or Explanation of NOA requests (-) THE JUDICIARY—Continued CUSTOMS COURT General and special funds—Continued Salaries and expenses 902 NOA Exp. 989 917 1,028 B 101 1,125 1,140 B 159 1,292 g i 1,159 30 1,157 32 ! 1,308 9 1,309 17 Estimate includes three additional bailiff positions, and provision for within-grade salary advancements. w d o COURT OF CLAIMS Salaries and expenses Repairs and improvements Total, Court of Claims 902 NOA 1,100 Exp. 1,104 902 NOA Exp. 10 4 NOA 1,110 Exp. 1,107 Includes a request for authority to retain the sum of $25 thousand provided in 1965 for updating the publication of the Court's decisions. (Increase covers salaries.) (Balance of funds lapsed, building currently unoccupied.) 1,140 B 159 1,292 ! 1,308 9 1,309 17 COURTS OF APPEALS, DISTRICT COURTS, AND OTHER JUDICIAL SERVICES Salaries of judges 902 NOA Oi OS 11,200 Exp. 11,049 Salaries of supporting personnel NOA 902 Exp. 30,650 29,844 11,100 B 3,520 14,300 32,445 l,105 33,523 B ! 1 Estimate provides for salaries of judges, and annuities of widows oi Justices of the Supreme Court. 14,620 14,620 320 35,585 2,035 35,377 1,854 The increase provides funds for additional personnel for the probation system, district courts and courts of appeals. Fees and expenses of court-ap- NOA pointed counsel 902 Exp. 7,040 6,460 7,040 Recent legislation calls for court-appointed counsel in certain criminal cases. 6,460 Fees of jurors and commissioners NOA 902 Exp. 5,500 5,473 5,500 5,500 6,500 6,445 1,000 945 Travel and miscellaneous expenses NOA 902 Exp. 4,500 4,710 5,160 450 5,120 438 2,230 528 2,208 510 Administrative Office of the U.S. NOA Courts 902 Exp. Salaries of referees (special fund) NOA 902 Exp. Expenses of referees (special NOA fund) 902 Exp. 4,682 4,765 1,620 B 82 1,698 1,590 1,587 2,600 2,651 2,670 B 1,278 3,836 4,514 566 4,467 631 5,750 B 205 5,862 6,735 780 6,653 5,250 5,237 61,290 63,795 B 6,190 69,401 82,384 791 12,399 81,350 11,949 87,865 12,504 65,127 68,782 6,579 74,825 86,823 11,998 Add: Court facilities and furnish- NOA ings items requested under the Exp. General Services Administration (contra) 902 1,031 691 1,031 1,353 2,100 1,822 1,069 469 NOA 67,016 89,965 13,573 Exp. 65,819 69,813 6,579 70,048 B 6,130 88,196 B449 12,467 Total, courts of appeals, dis- NOA trict courts, and other judicial services. Exp. Subtotal, The Judiciary _____ NOA Exp. Total, The Judiciary B 60,606 65,985 B B Proposed for separate transmittal, civilian pay increase supplemental. Increase covers anticipated increase in jury trials. Increase covers expenses in support of new personnel and an increase in rent, communications, and utilities. Increase includes funds for administration of the Criminal Justice Act of 1964 and more extensive analytical statistical work in the field of sentencing and probation and in the civil field. 1-3 W Increase provides for additional referees, and the conversion of parttime referees to a full-time status. Increase provides for additional clerical staffs of new referees, expenses of converting referees from part-time to full-time, and additional postage due to rising caseload and other increased costs. ft) > a 3 ^1 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 estimate 1964 enacted Account and functional code 1966 Increase or decrease Explanation of NOA requests EXECUTIVE OFFICE OF T H E P R E S I D E N T COMPENSATION OF THE PRESIDENT General and special funds: Compensation of the President 903 NOA Exp. 150 150 150 150 150 150 THE WHITE HOUSE OFFICE Salaries and expenses 903 NOA 2,730 Exp. 2,705 903 NOA 1,500 Exp. 1,212 2,730 | B 125 2,840 This office provides the President with staff assistance and administrative services. 2,855 2,845 5 1,500 125 1,500 125 694 694 -2 These funds provide for care, maintenance, and operation of the Execu tive Mansion and the surrounding grounds. 7,973 666 7,908 657 The Bureau assists the President in the discharge of his budgetary, management, and other executive responsibilities. Increase reflects 28 additional positions and added supporting costs for 1966. SPECIAL PROJECTS Special projects 1,500 | B—125 1,375 The President uses this appropriation for staff assistance on special problems. Transfer of $125 thousand is proposed for 1965 to meet civilian pay increases of the White House Office. EXECUTIVE MANSION AND GROUNDS Executive Mansion and grounds 903 NOA Exp. 671 662 903 NOA 6,500 Exp. 6,572 696 694 BUREAU OF THE BUDGET Salaries and expenses 6,853 | B454 7,251 I Intragovernmental funds: 65 Advances and reimbursements_903 Exp. Total, Bureau of the Budget. NOA 6,500 Exp. 6,636 -15 15 6,853 1 B 454 7,266 7,973 666 7,908 642 723 26 720 19 COUNCIL OF ECONOMIC ADVISERS General and special funds: Salaries and expenses 903 NOA 615 Exp. 611 Advances and reimbursements.903 Exp. 2 645 1 52 701 B The Council advises the President on economic programs and policy. Increase reflects costs of additional staff proposed for 1966. 3 W I ntragovern mental funds: Total, Council of Economic Advisers. NOA 615 Exp. 613 645 52 ! 701 720 19 525 419 500 480 525 490 25 10 The Council advises and assists the President on policies, plans, and programs in aeronautical and space sciences. 50 40 150 150 100 110 Estimate provides for first year of Council's program to encourage the development and appreciation of the arts. 660 30 The Council advises the President regarding national security policies. 640 15 B m 26 o a w NATIONAL AERONAUTICS AND SPACE COUNCIL General and special funds: Salaries and expenses 903 NOA Exp. NATIONAL COUNCIL ON THE ARTS Salaries and expenses 704 NOA Exp. NATIONAL SECURITY COUNCIL Salaries and expenses 903 NOA Exp. B Proposed for separate transmittal, ci 575 515 564 j 66 625 B vilian pay increase supplemental. ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars—Continued 1965 1964 1966 Increase or Explanation of NOA requests EXECUTIVE OFFICE OF THE PRESIDENT—Continued OFFICE OF EMERGENCY PLANNING 3 General and special funds—Continued Salaries and expenses 903 NOA 4,671 Exp. 4,844 4,599 B 241 4,664 J Salaries and expenses, telecom- NOA munications 903 Exp. State and local preparedness..059 NOA Exp. 1,500 81 1,500 1,500 Civil defense and defense mobiliza- NOA tion functions of Federal agencies 059 Exp. 4,190 4,190 1 B 175 4,400 3,789 4,989 149 4,500 -164 1,531 1,350 1,531 1,350 The Director of Telecommunications Management advises and assists the President in coordinating telecommunications activities. This activity was previously financed from "Salaries and expenses." 1,419 -1,500 -81 Financial assistance for State and local planning will be completed under the 1965 appropriation. 5,200 835 5,120 720 This appropriation assists other Federal agencies to prepare national emergency plans and develop preparedness programs under the guidance and review of the Office of Emergency Planning. This Office advises and assists the President in determining policy for and in planning, directing, and coordinating the total nonmilitary defense program. Increase reflects contract research on economic recovery and resources management, partly offset by transfer of telecommunications activities to a separate appropriation. 1 3 -3 (This activity was transferred to Department of Defense and Public Health Service by Executive order.) 903 Exp. 211 125 -125 (Financing has been transferred to the "Salaries and expenses" account.) Total, Office of Emergency NOA Planning Exp. 10,361 Emergency supplies and equip- Exp. ment T _059 Research and development 8,925 10,289 1 B 416 10,692 11,720 1,015 12,389 1,697 M W d o CD a as OFFICE OF SCIENCE AND TECHNOLOGY g Salaries and expenses § 9 I T 903 NOA 880 Exp. 823 900 1 B77 977 1,162 185 1,127 150 567 11 565 21 5 5 This Office advises and assists the President in developing policies and evaluating programs to assure that science and technology are used effectively for national security and the general welfare. SPECIAL REPRESENTATIVE FOR TRADE NEGOTIATIONS Salaries and expenses .903 NOA 465 525 1 31 544 B K Exp. 400 This Office directs U.S. participation in negotiations under the Trade Expansion Act of 1962, including the major Sixth Round of negotiations under the General Agreement on Tariffs and Trade. MISCELLANEOUS Advances and reimbursements: Federal Radiation Council-.903 Exp. -1 President's Advisory Council on Exp. the Arts 903 -60 President's Committee on Con- Exp. sumer Interests. 903 -46 President's Committee on Equal Exp. Opportunity in Housing._903 -23 President's Energy Study Com- Exp. mittee 903 -26 25 Exp. -156 25 Total. Executive Office of NOA the President. Exp. 24,972 Total, miscellaneous B 22,904 (The Council did not become operative and was succeeded by the National Council on the Arts.) (This Committee is financed by advances from participating agencies.) (The Committee is financed by advances from participating agencies.) 25,402 1 1,096 25.370 B 1,039 B -25 5 -20 28,679 2,181 29,126 1 B 57 2,774 Proposed for separate transmittal, civilian pay increase supplemental. (A direct appropriation is recommended under "Other Independent Agencies.") (Study will be completed in 1965.) ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 1966 Explainatjon of NOA requests (-) 00 FUNDS APPROPRIATED TO THE PRESIDENT ALASKA PROGRAMS General and special funds: A Alaska mortgage indemnity grants NOA 551 Exp. Transitional grants to Alaska. _910 NOA Exp. 20,000 19,430 550 NOA Exp. 20,000 19,430 A 659 NOA Exp. 70,000 21,191 20,000 56,000 Total, Alaska programs ^5,500 -5,500 5,500 Estimate for 1965 provides funds for matching grants under the Alaska Omnibus Act to retire or adjust mortgages or other liens on homes destroyed or severely damaged in the March 1964 earthquake. 6,500 6,540 6,500 5,990 Estimate for 1966 represents the balance authorized to be appropriated for grants to the State to assist in recovering from the earthquake ol Mar. 27, 1964. 6,500 6,540 1 A 5,500 1,000 11,490 5,500 5,500 550 3 w o o 3 DISASTER RELIEF Disaster relief 20,000 57,000 1,000 Estimate for 1966 will cover possible disaster needs, based on recent experience. EMERGENCY FUND FOR THE PRESIDENT Emergency fund for the Presi- NOA dent 903 Exp. CO o 1,000 509 1,000 1,298 90,883 76,250 1,000 1,000 -298 This appropriation enables the President to provide for emergencies affecting the national interest, security, or defense. EXPANSION OF DEFENSE PRODUCTION Public enterprise funds: Revolving fund, Defense Produc- Exp. tion Act 059 -32,215 -108,465 Reduction in 1966 is due to timing of interest payments to Treasury on outstanding Defense Production Act borrowings. Oi EXPENSES OF MANAGEMENT IMPROVEMENT General and special funds: Expenses of management improve- NOA ment 903 Exp. 100 181 300 485 250 325 205,880 250,000 -50 -160 This appropriation enables the President to improve management, organization, and operation of the executive branch. 205,880 A250,000 A 25,000 25,000 Estimate for 1966 will provide the 2d and final installment of callable capital used as a reserve against Bank borrowing in private capital markets. Supplemental in 1965 and 1966 will provide the first 2 of 3 equal installments for a proposed expansion of the Bank's Fund for Special Operations. 104,000 10,000 42,344 -51,656 Estimate for 1966 will provide the first of 3 equal installments comprising the U.S. share of an expansion of IDA resources. -1,031,250 -257,812 Supplemental in 1965 will finance the U.S. share of a general increase in Fund quotas. INTERNATIONAL FINANCIAL INSTITUTIONS 50,000 Investment in Inter-American De- NOA velopment Bank 152 Exp. 50,000 Subscription to the International NOA Development Association. _. 152 Exp. 61,656 61,656 A Increase in quota in the Interna- NOA tional Monetary Fund 152 Exp. Total, international financial institutions. 61,656 61,656 A 1,031,250 A 257.812 NOA 111,656 Exp. 111,656 267,536 M,281,250 61,656 A 257,812 A a Military Assistance A D 057 NOA Exp. 1,000,000 1,485,277 1,055,000 1.200,000 D 1,170,000 115,000 1,100,000 -100,000 Proposed for separate transraittal, other than pay increase supplemental. To carry out authorizing legislation to be proposed. o o w 309,880 1-988,906 250,000 10,000 1-284,468 A 25,000 MUTUAL DEFENSE AND DEVELOPMENT Military assistance •a The 1966 program shows increased requirements in southeast Asia. Program composition, however, reflects the increased ability of some countries to finance their own military needs. ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 enacted code id fui 1966 Increase or (-) 00 o Explanation of NOA requests FUNDS APPROPRIATED TO THE PRESIDENT—Continued MUTUAL DEFENSE AND DEVELOPMENT—Continued Economic Assistance General and special funds—Continued Technical cooperation and devel- NOA opment grants 152 Exp. D B 204,600 1 210,000 -2,529 190,000 205,000 Reduction reflects completed financing of the medical center at the American University of Beirut. Remainder of program continues at the same level. 3,000 2,000 -1,000 (Expenditures cover U.S. contribution to complete U.S.-sponsored children's hospital in Poland and to support the American University at Cairo.) 1,600 100 -1,600 71 100 Carryover from 1965 and anticipated deobligations will fund expanded 1966 program. 155,455 105,000 21,183 -20,000 The estimate provides for U.S. voluntary contributions to international agencies, including matching contributions to the United Nations Special Fund and Technical Assistance programs. A major part of the increase is to meet scheduled requirements for the Indus Basin development project. 369,200 -31,800 20,000 Assistance to friendly nations continues to decline except for southeast Asia. American schools and hospitals NOA abroad (special foreign currency Exp. program) 152 International organizations programs and NOA 152 Exp. 116,000 178,890 134,272 125,000 D Supporting assistance 152 NOA 330,000 370,969 401,000 370,000 D 15,000 -9,800 16,800 10,000 Exp. Estimate reflects continued emphasis on technical assistance programs, particularly in Africa. 7,000 10,000 American schools and hospitals NOA abroad 152 Exp. Surveys of investment opportuni- NOA ties 152 Exp. D 7,929 390,000 d o Contingencies 152 NOA Exp. Alliance for Progress: Technical NOA cooperation and development Exp. grants 152 Social progress trust fund 152 NOA Exp. Administrative expenses: Agency for International Devel- NOA opment 152 Exp. State 152 NOA 50,000 121.804 99,200 75,000 D 50,000 70,000 -49,200 -5.000 84.000 94.430 84,700 90,080 D 85,000 89,519 300 -561 131,000 65,000 80,000 49,982 51.661 2,700 51,200 1 B2,400 54,000 2,900 | B 129 2,900 Estimate continues technical assistance activities required for the success of the Alliance efforts by the countries of Latin America. Loans appear under "Loan and guarantee programs." Beginning in 1965 the Inter-American Development Bank's Fund for Special Operations (see section on Investment in Inter-American Development Bank) will incorporate the type of activity heretofore carried out by the trust fund. 80,000 D Estimate is minimum amount necessary to provide flexibility to the President to meet unforeseen emergencies and urgent opportunities in the national interest. 55,240 1,640 55,000 1,000 3,100 71 3,100 200 Exp. 3,417 Subtotal, grants and other NOA programs. Exp. 937,584 1,120,231 996,272 1,000,080 934,995 1,009,719 -61,277 9,639 375,000 112,580 425,000 195,000 495,125 228,000 70,125 33,000 W Estimate reflects pay increases, expanded training programs, and other items for administration of the program. Provision is made for mandatory salary increases and some additional nonsalary expenses. j W o Q Public enterprise funds: Loan and guarantee programs: Alliance for Progress: Develop- NOA ment loans 152 Exp. i Estimate provides for the U.S. share in accelerating joint Alliance for Progress effort. The United States also supports Latin American development through (a) use of agricultural surplus under the Food for Peace program, (b) Alliance development grants, (c) the facilities of the Export-Import Bank and the Peace Corps, and (d) subscriptions to the Inter-American Development Bank, all shown elsewhere. Development loans—revolving NOA fund 152 Exp. 687,300 566,728 773,728 735,000 780,250 745,000 6,522 10,000 Estimate reflects continued requirement for loan assistance, mainly in the Near East and south Asia. Development loan fund (liqui- Exp. dation account) 152 201,317 127.000 125.000 -2,000 (The fund ceased existence as a corporate entity in 1962, except for liquidation of loan commitments.) B D Proposed for separate trans mittal, civilian pay increase supplemental. To carry out authorizing legislation to be proposed. o 3 9 00 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 1965 1966 Increase or to Explanation of NOA requests (-) FUNDS APPROPRIATED TO THE PRESIDENT—Continued MUTUAL DEFENSE AND DEVELOPMENT—Continued d o Economic—Continued Public enterprise funds—Continued Loan and guarantee programs—Con. Foreign investment guarantee Exp. fund 152 -4,831 -8,000 -9,000 -1,000 Subtotal, loan and guaran- NOA tee programs. Exp. 1,062,300 875,795 1,198,728 1,049,000 1,275,375 1,089,000 76,647 40,000 Intragovernmental funds: Advance acquisition of property— Exp. revolving fund 152 744 900 1,266 366 (The fund finances costs related to acquisition, renovation, and resale of Government-owned excess property.) Office of Inspector General, For- Exp. eign Assistance, State 152 24 20 15 -5 (Advances of $825 thousand from other appropriations will finance the continued review of foreign assistance activities.) Subtotal, intragovernmental Exp. funds. 768 920 1,281 361 Total, economic assistance. __ NOA Exp. 1,999,884 1,996,793 2,195,000 2,050,000 2,210,370 2,100,000 15,370 50,000 Total, mutual defense and de- NOA velopment. Exp. 2,999,884 3,482,071 3,250,000 3,250,000 3,380,370 3,200,000 130,370 -50,000 (Guarantees of $1.5 billion are expected to be issued. No new obligational authority or expenditures are anticipated. Increased authority to make guarantees will be sought in 1965 foreign assistance legislation.) CO OS OFFICE OF ECONOMIC OPPORTUNITY General and special funds: 760,000 330,000 Economic opportunity program _ _ _ NOA 655 Exp. D 705,000 980,000 Increase will expand the war on poverty to additional communities and involve over 600,000 disadvantaged persons in the work, education, and training programs financed by this account. 35,000 35,645 9,800 18,320 Estimate will provide for an increase from 7,500 to 16,000 loans to aid poor farmers and migrant workers. 1,500,000 1,345,645 714,800 998,320 1,465,000 1,310,000 Public enterprise funds: Economic opportunity loan funcL NOA 655 Exp. 25,200 17,325 Total, Office of Economic Op- NOA portunity. Exp. 785,200 347,325 D PEACE CORPS General and special funds: Salaries and expenses Reappropriation 152 NOA NOA Exp. 87,0931 17,000| 80,000 92,100 3,864 60,397 D 125,200 21,107 105,000 25,000 Corps will expand to 17,000 volunteers and trainees, an increase of 2,000 over 1965, mainly in Africa and Near East-south Asia. PUBLIC WORKS ACCELERATION Public works acceleration 507 NOA Exp. 4,000 300,000 30,000 331,820 -4,000 145,000 -155,000 Authorized program is being completed. Projects were approved prior to July 1, 1964. SPECIAL FOREIGN CURRENCY ACTIVITIES Translation of publications and Exp. scientific cooperation 355 W 391 661 367 -24 (Continuation of this program is provided under the National Science Foundation and the Department of Agriculture.) o MISCELLANEOUS Obligations, defense aid, liquida- Exp. tion lend-lease program 152 13 Total, funds appropriated to NOA 3,328,604 the President. 4,118,812 Exp. A D (Account is used only to pay old obligations.) A 4,432,129 1,286,750 4,173,955 A 257,812 5,343,200 1-125,679 A 250,000 4,838,662 1 437,395 A 30,500 Proposed for separate transmittal, other than pay increase supplemental. To carry out authorizing legislation to be proposed. 00 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 Account and functional code 1966 Increase or 00 4 Explanation of NOA requests (-) DEPARTMENT OF AGRICULTURE AGRICULTURAL RESEARCH SERVICE General and special funds: Salaries and expenses Permanent Reappropriation Salaries and expenses (special 355 NOA NOA NOA Exp. NOA foreign currency program) _ _ 355 Exp. State experiment stations 355 Exp. Construction of facilities 355 Exp. Diseases of animals and poultry Exp. 355 Animal disease laboratory Exp. facilities 355 Research on strategic and critExp. ical materials 355 Establishment of an entomolExp. ogy research laboratory 355 183,775 1,000 185,295 1,250 4,808 220,560 \ 225,757 | -5,071 A 550 A-27,305 B 6,013 24,600 1,000 235,907 1 -7,591 211,167 M 6 8 A -31.863 Supplemental is for screwworm eradication in the Southwest. Net decrease reflects proposed legislation to place meat inspection on a self-supporting basis and savings from reduction or elimination of research at 47 locations and elimination of the fire ant control program. Increases in 1966 are for staffing new and expanded facilities, additional support for senior scientists, research on livestock, toxin-producing molds, and health-related problems of tobacco, expanded plant and animal disease and pest control and eradication, meat inspection and construction of laboratories—primarily of laboratories for which planning was provided in 1965. 2,000 1,480 Increase expands use of excess foreign currencies for agricultural and forestry research in the economic, biological, and physical sciences. 2,000 6,830 4,000 8,310 1 1,667 56 7 (Activities were transferred to Cooperative State Research Service.) 897 367 -530 (New construction is funded under Salaries and expenses.) 13 -13 (Expenditures from the account are expected to be completed in 1965.) 93 -93 (Construction in 1965 completes this installation at Ames, Iowa.) 1 -I (Expenditures from this account are expected to be completed in 1965.) 3 -3 (Expenditures from this account are expected to be completed in 1965.) W o a s Intragovernmental funds: Working capital fund, Agricul- Exp. tural Research Center 355 -14 Total, Agricultural Research NOA Service. 186,025 Exp. 191,819 223,560 ] 254,357 | -3,071 A 550 \ A -27,305 B 6,013 244,584 1 -6,751 219,004 M68 A -31,863 COOPERATIVE STATE RESEARCH SERVICE General and special funds: Payments and expenses 355 NOA Permanent 41,631 49,930 B 67 52,367 1 41,614 49,993 400 52,454 NOA Exp. 2,770;, A decrease of $1.2 million in facility grants is more than offset by increase of $2 million for grants to land-grant colleges; $1 million for grants for cooperative forestry research and $900 thousand for grants for 2,461 basic research and other activities. d ft) EXTENSION SERVICE 80,180 Cooperative extension work, pay- NOA ments and expenses 355 Exp. Intragovernmental funds: Advances and reimbursements _ 355 Exp. Total, Extension Service A B 79,417 85,174 | B -67 85,340 86,335 1,228 86,391 1,051 86,335 1,228 86,391 1,051 Increase is for additional employment of area extension agents by the States and payment of increased mandatory retirement and employees compensation costs. o o w -15 NOA 80,180 Exp. 79,402 85,174 1 B -67 85,340 Proposed for separate transmittal. other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 1966 Increase or Explanation of NOA requests Account and functional code (-) DEPARTMENT OF AGRICULTURE—Continued FARMER COOPERATIVE SERVICE General and special funds: Salaries and expenses 355 NOA 1,201 Exp. 1.141 Advances and reimbursements.355 Exp. 72 Total, Farmer Cooperative NOA Service. 1,201 1,102 1 B 39 1,120 1,241 100 1,226 106 Increase is to improve research and technical assistance for farmer cooperatives. d o Intragovernmental funds: Exp. 1,213 -35 35 1,102 1 B 39 1,155 1,241 100 1,226 7) s P SOIL CONSERVATION SERVICE General and special funds: Conservation operations 354 NOA Exp. Watershed planning. 97,850 95,951 ...354 NOA 354 NOA Flood prevention 354 NOA Exp. Exp. Great Plains conservation pro- NOA gram 354 Exp. A A Decrease is due to nonrecurring capital improvement at plant material centers. Decrease under proposed legislation is to finance through fees and charges up to 50% of cost of technical assistance. Estimate provides for surveys of proposed small watershed projects and preparation of work plans in cooperation with local sponsors. 5,521 | B 200 5,415 5,721 5,727 312 67,171 6,151 62,776 60,285 1 B 735 59,568 64,820 5,252 Estimate will start construction of about 70 watershed projects, continue 280, complete 35, provide advance engineering for 298, and increase construction loans and comprehensive river basin surveys. 25,430 22,382 26,317 25,300 25,417 25,700 -900 400 Decrease due to reduced estimate for emergency measures for which $900 thousand supplemental appropriation was provided in 1965. 13,617 14,744 1 B 120 13,249 14,864 Exp. Watershed protection 100,183 B 4,050 103,572 104,103 1-20,130 -20,000 104,000 1-19,572 -20,000 63,510 11,882 14,364 Estimate provides cost-sharing assistance to farmers for technical conservation services. 1,115 Resource conservation and de- NOA velopment 354 Exp. Total, Soil Conservation Serv- NOA ice. Exp. 1,770 1 B 43 1,799 1,500 263 201,907 193,254 208,820 B 5,148 208,903 A A 4,303 2,490 3.700 1,901 Estimate includes planning of 10 new projects in 1966, beginning development of 5 of these and continuing development of the 10 projects approved during 1965. 221,579 1-12,389 -20,000 218.311 1-10,592 -20,000 ECONOMIC RESEARCH SERVICE Salaries and expenses 355 NOA 9,890 Exp. 10.016 10,562 | B 360 10,705 11,366 444 11,306 601 14,366 2,500 14.316 2,465 Increase provides research on farm financial management, water management, the away-from-home food market, agricultural exports and imports, and export outlook projections. STATISTICAL REPORTING SERVICE Salaries and expenses 355 NOA 11,244 Exp. 11.202 I nongovernmental funds: Advances and reimbursements.- Exp. 355 Total, Statistical Reporting NOA Service. Exp. 11,460 1 B 406 11,851 11,244 11.184 -18 18 -18 Increase (nonrecurring) is for purchase of a large scale computer. Work will be reduced on the cattle-on-feed and turf grass seed programs and eliminated for cutflowersto permit extension of the basic program to improve crop and livestock estimates to the 48 conterminous States. 11,460 1 B 406 11,869 14,366 2,500 14,316 2,447 5 a AGRICULTURAL MARKETING SERVICE General and special funds: Marketing services 355 NOA 42,400 Exp. 43,540 39,487 1,000 39.450 B 41,232 1-20,191 -20,936 41,395 1-22,701 A-24,646 A 1,500 1,500 1,500 Payments to States and posses- NOA sions __355 Exp. 1,500 1,500 1.500 A B Proposed for separate transmittal. other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. The decrease reflects proposed legislation to finance poultry inspection and certain marketing services on a fee basis, partially offset by increases for mandatory poultry inspection, livestock grading, and administration of Packers and Stockyards and U.S. Warehouse Acts. Estimate provides for matching payments to States for programs to improve marketing. oo 00 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 1965 1966 Increase or Explanation of NOA requests (-) DEPARTMENT OF AGRICULTURE—Continued AGRICULTURAL MARKETING SERVICE—Continued d General and special funds—Continued Special milk program Permanent School lunch program Permanent Food stamp program Permanent 659 NOA NOA Exp. 100,000 659 NOA NOA Exp. 137,000 45,000 180,664 97,484 659 NOA NOA Exp. 51,500 1 100,000 51,500 103,000 100,000 146,400 45,000 190,900 25,000 [ 35,000 59,600 -3,000 -3,000 157,000 j 45,000 202,000 10,600 100,000 40,000 99,600 40,000 Increase in the direct appropriation and decrease in the permanent appropriation (transferred from "Removal of surplus agricultural commodities") reflects a shift in financing in 1966. Increase provides for school lunches to increased number of children. o 11,100 Increase provides for expansion of program under direct appropriation authorized under the Food Stamp Act of 1964. Perishable agricultural commodi- NOA ties act fund (permanent, in- Exp. definite, special fund) 355 845 835 895 925 953 939 58 14 An increase in license fee rates effective Jan. 1, 1965, provides added funds in 1966 for administration of the license system. Removal of surplus agricultural NOA commodities (permanent, in- Exp. definite) . 351 269,021 239,611 226,817 241,817 311,683 311,683 84,866 69,866 30% of certain customs receipts is available to finance this and related Federal programs. Increase results from elimination of transfers to the food stamp and special milk programs, and will permit larger volume of surplus commodity purchases for donation to the States. (Food stamp program) 659 NOA Exp. 30,881 30,448 Intragovernmental funds: Advances and reimbursements_355 Exp. Total, Agricultural Marketing NOA Service. Exp. -92 626,647 593,990 106 -106 757,368 1 112,333 623,099 B 1,000 A - 2 0 , 9 3 6 637,296^ A 757,117 -24,646 } 95,173 FOREIGN AGRICULTURAL SERVICE General and special funds: Salaries and expenses w 20,574 -205 3,117 16,869 20,474 B 305 3,117 19,857 3,117 20,487 630 Salaries and expenses (special Exp. foreign currency program) __355 3,066 2,800 2,463 -337 Total, Foreign Agricultural NOA Service. 21,804 23,691 -205 22,950 293 Permanent.. 355 NOA 18,687 NOA Exp. Exp. 19,935 23,591 1 B 305 22,657 Decrease is primarily result of a shift in funding market development projects in Brazil from this appropriation to the special foreign currency appropriation. (Appropriation is not requested since there are adequate carryover balances for this account.) W >1 tr o o COMMODITY EXCHANGE AUTHORITY Salaries and expenses _ _ _ 355 NOA Exp. AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE 1,095 1,117 1,119 1 B 50 1,159 1,159 105,602 1 138,350 Expenses, Agricultural Stabiliza- NOA 120,143 B 2,950 tion and Conservation Service. _ 111,560 136,701 116,845 351 Exp. A Proposed for separate transmittal, other than pay increase supplemental. B Proposed for separate transmittal, civilian pay increase supplemental. Estimate provides for licensing, auditing, supervisory, and investigative activities. 1,169 29,798 Increase is primarily for financing work in 1966 under wheat diversion and other programs previously financed from CCC funds. 25,141 00 CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 1965 Account an d functional code 1966 Increase or o Explanation of NOA requests (-) DEPARTMENT OF AGRICULTURE—Continued AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE—Continued General and special funds—Continued Sugar Act program 351 NOA 78,000 Exp. 87,071 Agricultural conservation program: Contract authorization 354 NOA Liquidation of contract authorization Exp. 90,000 1 M3,000 90,001 1 A 13,000 220,000 (215,000) 213,563 220,000 (225,000) 225,586 95,000 -8,000 95,004 -7,997 Decrease results from less payments to be made in 1966 for prior year crops than in 1965. 120,000 -100,000 Reduction proposed will provide adequate funds to cost-share high priority conservation practices. (220,000) (-5,000) -2,813 (Payments which should have been made in 1964 were made in 1965 due 222.773 to insufficient 1964 funds. This should not recur in 1966.) Cropland conversion program: Contract authorization (per- NOA manent) 351 Liquidation of contract authorization. Exp. 10,000 10,000 (11,350) 7,097 (15,000) 14,162 A fully authorized program is provided in 1966. Decrease in appropriation to liquidate contract authorization in 1966 is due to financing more than 1 year's program in 1965. (10,000) (-5,000) -5,732 8,430 Conservation reserve program_351 NOA Exp. 294,000 289,933 194,000 196,995 150,000 152,201 -44,000 -44,794 Requirements for annual rental payments will decrease in 1966, with contracts expiring on about 3.2 million acres in 1965. Emergency conservation measures NOA 354 Exp. 4,000 3,393 4,000 6,384 4,000 3,278 -3,106 Payments are for cost-sharing assistance to farmers to rehabilitate lands damaged by natural disasters. -8,800 -8,800 Special appropriation in 1965 was to aid farmers required to remove from commercial markets milk containing chemical residues. Indemnity payments to dairy NOA farmers 355 Exp. 8,800 8,800 10,000 o o W »—» CO I nongovernmental funds: Administrative expenses, sec. 392, Exp. Agriculture Adjustment Act of 1938 355 12 -12 (This account is merged with "Expenses, Agricultural Stabilization and Conservation Service.") (This account is merged with "Expenses, Agricultural Stabilization and Conservation Service.") Local administration, sec. 388, Exp. Agricultural Adjustment Act of 1938 355 42 12 -12 Total, Agricultural Stabiliza- NOA tion and Conservation Service. Exp. 726,143 632,402 13,000 B 2,950 653,512 A 13,000 517,350 -131,002 A 717,794 I 618,387 -48,125 COMMODITY CREDIT CORPORATION Price Support and Related Programs Public enterprise funds: Price support and related programs: 351 Contract authorization (permanent, indefinite). Appropriation to liquidate contract authorization. Reimbursement for net realized losses. Limitation on administrative expenses. NOA NOA NOA Exp. Special milk program: 659 Reimbursement for costs for Exp. special milk program. Total, price support and NOA related programs. Exp. A B O 469,010 (290,989) 1,283,011 ]2,300,000 -163,864 M, 180,853 (41,650) (36,650) (-701) (37,351) 3,175,282 2,292,573 1,863,710 -428,863 2,699,400 -387 3,168,410 -12 3,174,895 12 1,283,011 12,300,000 -163,864 l,180,853 1,863,710 -428,851 2.292,561 A Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. (-290,989) Supplemental NOA in 1965 is to restore unrecoyered 1962 and 1963 losses to provide sufficient borrowing authority in 1965. Request in 1966 is for needed capital to reimburse the Corporation for a portion of 1964 realized losses. (Program is now being financed through an appropriation under the Agricultural Marketing Service.) ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued to Account and functional code 1964 enacted 1965 estimate 1966 Increase or decrease Explanation of NOA requests DEPARTMENT OF AGRICULTURE—Continued COMMODITY CREDIT CORPORATIONContinued Special Activities The facilities of the Commodity Credit Corporation are available by law for carrying out the various programs listed. Subsequent recovery of costs incurred is made from special revenues, appropriations, or from other agencies. Intragovernmental funds: Military housing, barter and ex- Exp. change 351 National Wool Act (permanent, NOA indefinite) 351 Exp. 389 -3,027 -2,389 -2,000 90,179 87,770 31,499 -56,271 72,937 31.766 38,511 6,745 351 Exp. 13 Research to increase domestic NOA consumption of farm commodities (permanent) 355 Exp. 16,000 12,175 553 8,593 8,470 -123 6,752 5,892 -860 Migratory waterfowl feed Research to reduce surplus com- Exp. modities 355 Loans for poses conservation pur- Exp. 354 -640 (Receipts are from Department of Defense for housing constructed in France, using foreign currencies acquired by sale of agricultural commodities.) d o 3 1965 NOA fully reimburses the Corporation for all prior year costs. 1966 NOA will«ieet current year costs. (Increased payments to producers due to anticipated lower prices on wool and mohair marketings.) (This item is now included in Department of the Interior.) -12,175 Funds transferred to Commodity Credit Corporation from section 32 are, in turn, transferred to Agricultural Research Service and Cooperative State Research Service for specified research projects. In 1966 the funds will be by direct transfer to those agencies. (Corporation funds are transferred to the Agricultural Research Service for specified research projects.) (Corporation funds may be loaned to the Secretary of Agriculture to carry out the agricultural conservation program. No net borrowings are expected in 1966.) OS O5 Transfer of long-staple cotton Exp. from national stockpile for sale by Commodity Credit Corporation 351 -11,810 -3,785 -556 3,229 NOA Exp. 106,179 58.026 99,945 40,937 31,499 50,317 -68,446 9,380 Increase or decrease (—) in Exp. amount owed by general fund for foreign assistance programs. -21.635 -782,053 25,623 807,676 Total, special activities fi- NOA nanced by Commodity Exp. Credit Corporation 106,179 36,391 99,945 -741.116 31,499 75,940 -68,446 817,056 Total, Commodity Credit NOA Corporation price support and related programs and Exp. special activities. 3,274,589 Subtotal o O > •-d o o Expenditures for the 5 following items are the expenditures made by the Government (through Commodity Credit Corporation) in each year for the respective program. 1,452,000 1,415,306 1,612,000 11,144,000 -741,000 A 273,000 1,246,664 1,140,000 -106,664 Grants of commodities for NOA 215,451 220,453 298,500 famine relief 154 Exp. 228,199 210,538 305.623 A Proposed for separate transmittal, other than pay increase supplemental. (Expenditures made through the Commodity Credit Corporation for foreign assistance and special export programs are included on the respective lines of these programs. This adjustment brings the total of these programs to the net expenditures for special activities funded by the Corporation during each year.) 1,382,956 12,331,499 -232,310 A 1,180,853 388,205 3,211,286 1,551,445 1,939,650 Foreign Assistance and Special Export Programs General and special funds: Public Law 480: Sale of commodities for foreign NOA currencies 154 Exp. (The Corporation is authorized to sell cotton released from the national stockpile. Proceeds, less costs incurred, are deposited in the Treasury as miscellaneous receipts.) 78,047 95.085 Supplemental in 1965 provides for unrecovered 1965 costs. (Decrease in expenditures results primarily from reduction in shipments of nonprice-support commodities and lower ocean freight charges as new law requires buyers to pay all except additional cost for use of American vessels.) Volume of commodities (principally wheat) donated for economic development is estimated to be higher in 1966. CD ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 estimate 1966 i Increase or decrease CO Explanation of NOA requests DEPARTMENT OF AGRICULTURE—Continued COMMODITY CREDIT CORPORATIONContinued Foreign Assistance and Special Export Programs—Continued o General and special funds—Continued Public Law 480—Continued Losses on long-term sales con- NOA tracts 154 52,515 Exp. 60,456 International Wheat Agree- NOA ment 351 Exp. 86,218 U5JS3 Bartered materials for supple- NOA mental stockpile 351 Exp. A 35,000 1 215,500 233,400 -52,900 215,500 11,236 204,264 31,838 1 54,956 29,955 27,544 -59,250 27,544 -2.411 82,860 37,665 92,860 80,033 52,500 75,000 -40,360 NOA 1,889,044 1,738,044 -815,463 Exp. 1,867,409 1,992,151 A 561,356 1,771,454 Increase (—) or decrease in Exp. amount owed by general fund to Commodity Credit Corporation. 21,635 782,053 -25,623 -807,676 Subtotal A 1,763,667 -5,033 Decrease is due to supplemental request in 1965 to cover reimbursement to Commodity Credit Corporation for unrecovered costs. NOA in 1966 is to cover only 1966 costs less repayments. (It is estimated that long-term sales for dollars will continue to increase in 1966.) Supplemental in 1965 provides for unrecovered 1964 and 1965 costs. Estimate will provide for 1966 costs only. Decrease assumes use of $22.5 million of prior year funds. (Estimate is for value of strategic materials acquired by barter and transferred to supplemental stockpile.) -7.787 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 appropriation to the Corporation during each year. i OS O5 1,992,151 11,738,044 -815,463 A 561,356 2,553,507 1,738,044 -815,463 Total, foreign assistance and NOA special export programs. Exp. 1,889,044 Total, Commodity Credit NOA Corporation, foreign assistance program, and special Exp. export program. 3,375,107 )4,069,543 -1,047,773 AI,742,209 5,100,330 4,104,952 3,677,694 -427,258 1,889,044 5,163,633 FEDERAL CROP INSURANCE CORPORATION Administrative and operating ex- NOA penses 351 Exp. Exp. Public enterprise funds: Federal Crop Insurance Corporation Fund: Limitation on administrative expenses 351 Exp. Total, Federal Crop Insur- NOA ance Corporation. Exp. 7,057 7,134 7,187 1 B 291 7,499 8,478 1,000 8,468 969 Increase is for expansion of the crop insurance program—100 new counties will be added in 1966. > (3,505) -819 7,057 6,315 (3,638) -445 7,187 1 B 291 7,054 (3,638) 1,159 1,604 8,478 1,000 9,627 2,573 (Increase results from heavy indemnity payments made in 1964 which normally would have been made in 1965. The normal indemnity payment pattern is expected in 1966.) RURAL ELECTRIFICATION ADMINISTRATION General and special funds: Loans (authorization to spend NOA debt receipts)..353 Exp. 495,000 330,194 435,000 355,000 A-168,000 A B 447,000 1-333,000 -345,000 1,000 365,000 1 A -177,000 A Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. The 1966 authorization, plus balance from previous years, will provide for estimated loan commitments of $300 million for electrification and $97 million for telephone and for $65 million reserve. Proposed legislation permits loan receipts to be used. This will reduce expenditures in 1965, and both NOA and expenditures in 1966. O O ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 1965 1966 Account an d functional code Explanation of NOA requests (-) DEPARTMENT OF AGRICULTURE—Continued RURAL ELECTRIFICATION ADMINISTRATION—Continued General and special funds—Continued Salaries and expenses 353 NOA Exp. Total, Rural Electrification Administration. 11,243 11,354 NOA 506,243 Exp. 341,548 11,574 J B 360 11,820 446,574 B 360 366,820 A-168,000 11,934 11,895 75 Estimate covers administrative expenses of the rural electrification and telephone programs. w o o d 458,934 1-333,000 -345,000 376,895 | 1,075 A -177,000 A FARMERS HOME ADMINISTRATION Rural housing grants and loans.352 NOA Exp. Loan authorizations 352 Authorization to spend debt NOA receipts. Appropriations NOA Exp. 4,481 25,000 126,097 10,000 9,260 Increase is for enlargement and development loans and repair and improvement grants. 150,000 -150,000 Program will be financed through use of carryover balances of prior NOA. Expenditures will decline in 1966 as the proposed rural housing loan insurance program becomes operative. 143,500 30,000 -113.500 2,590 Rural housing for domestic farm NOA labor 352 Exp. Rural renewal 352 NOA Exp. 1,200 143 1,200 1,750 10,000 11,850 5,000 5,000 5,000 5,000 Grant assistance will be provided to nonprofit public or private organizations for low rent housing and related facilities for domestic farm labor. 3,000 2,800 1,800 1,050 Provides for continuation and implementation of program operations in 5 pilot project areas. OS OS Salaries and expenses _ _ _ 352 NOA Exp. 38,847 39,127 39,533 j 1,700 41,000 44,692 3,459 44.600 3.600 Increase is for administrative costs of expanded programs and extending more program and related supervisory assistance to low-income applicants. 5,000 8,991 5,000 4,600 -4,391 NOA will increase capital used for loans to nonprofit institutions to finance modest cost rental housing for the elderly in rural areas. 100,000 A 40.000 100,000 40.000 Legislation will be proposed to authorize a revolving fund to finance insured rural housing loans. B Public enterprise funds: Rural housing for the elderly re- NOA volving fund 352 Exp. Rural housing insurance (proposed legislation) 3,500 100 A fund NOA 352 Exp. 56,129 47,636 17.717 -29,919 (Receipts and balances will more than cover proposed $340 million loan program, interest and incidental costs.) Emergency credit revolving fund Exp. 352 -9.138 17,679 5.863 -11,816 (Receipts and balances will finance estimated $69 million program including administrative expense.) Agricultural credit insurance NOA fund (permanent, indefinite au- Exp. thorization to spend debt receipts) 352 45,156 42.461 -15,329 -11,846 3,483 113,703 195,733 B 1,700 247,817 Direct loan account 352 Total, Farmers Home Administration. Exp. NOA Exp. 259.400 A Sale of loans will increase in 1965. Proposed legislation would increase from $200 million to $300 million the real estate loans which may be insured annually under the fund. Current contingent liabilities for insured loans are estimated at $957 million. o o 67,692 | - 2 9 , 7 4 1 100,000 110,584 1-97,233 M0.000 RURAL COMMUNITY DEVELOPMENT SERVICE General and special funds: Salaries and expenses 355 NOA 119 Exp. 110 Advances and reimbursements_355 Exp. 77 Total, Rural Community De- NOA velopment Service. Exp. 119 123 1 B 9 131 750 618 111 591 The increase provides for strengthening of the coordination and liaison efforts related to the development of rural areas. I ntragovern mental funds: 187 206 123 1 B 9 337 -4 -210 750 618 718 381 CO A B Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 estimate 1966 Increase or decrease Explanation of NOA requests DEPARTMENT OF AGRICULTURE—Continued w d OFFICE OF THE INSPECTOR GENERAL General and special funds: Salaries and expenses 9,866 B 250 9,716 355 NOA Exp. i 10,961 845 10,906 1,190 Increase provides for expanded departmentwide audit and investigation services. 3 CD O OFFICE OF THE GENERAL COUNSEL Salaries and expenses 4,032 3,853 B 186 4,057 ! 1,684 1,648 1,644 1,679 1) 355 NOA 1,426 Exp. 1,404 1,547 »52 1,573 355 NOA 3,963 Exp. 4,229 190 4,225 168 Increased legal workload under the expanded food stamp program, Packers and Stockyards Act, and FHA loan programs accounts for the increase. OFFICE OF INFORMATION Salaries and expenses 355 NOA Exp. Estimate provides for departmentwide information services. 1,689 1,679 NATIONAL AGRICULTURAL LIBRARY Salaries and expenses ! 1,865 266 1.839 266 Increase is primarily for expansion and mechanization of the Bibliography of Agriculture as a means of providing improved services to the scientific and technological community. Library facilities 355 NOA Exp. 450 55 Total, National Agricultural NOA Library. Exp. 1,876 355 1,547 1 B 52 1,928 1,460 7,000 2,011 7,000 1,656 8,865 7,266 3,850 1,922 2,579 96 2,628 405 3,848 295 3,853 358 47 -7 Provides for construction of the National Agricultural Library, Beltsville, Md. Planning funds were provided in 1964. OFFICE OF MANAGEMENT SERVICES Salaries and expenses 2,463 I B 20 2,223 355 NOA Exp. Provides central financing of management services for a number of smaller Department agencies. GENERAL ADMINISTRATION 355 NOA 3,750 Exp. 3,902 3,314 1 B 239 3,495 355 Exp. -330 54 Total, general administration. NOA 3,750 Exp. 3,572 3,314 1 B 239 3,549 General and special funds: Forest protection and utiliza- NOA tion 402 202,460 Exp. 204,004 Salaries and expenses I nongovernmental funds: Working capital fund Increase provides for program and policy direction and coordination of the civil rights program within the Department of Agriculture under the provisions of title VI of the Civil Rights Act of 1964. 3 3,848 295 3,900 351 200,873 1 212,445 14,000 B 3,924 202,813 1 202,190 A 14,000 -6,352 FOREST SERVICE A Cooperative range improvements NOA 700 700 700 (special fund) 402 Exp. 700 700 700 A B Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. -14,623 Supplemental is for firefighting. Decrease in 1966 results from lower estimates for firefighting and research construction partially offset by increases for forest land management, research activities, and the development of recreational facilities on national forest lands. CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 estimate Increase or decrease 1966 Explanation of NOA requests DEPARTMENT OF AGRICULTURE—Continued FOREST SERVICE—Continued td General and special funds—Continued Forest roads and trails 402 Contract authorization: Current NOA Permanent NOA Liquidation of contract authorization. Exp. Access roads 402 Exp. 85,000 85,000 (63,200) 58,913 1,604 (70,300) (1,172) 84,908 B 85,000 (78.672) 78,672 Program will construct or reconstruct about 1,865 miles of multipurpose roads mostly to harvest timber. Increase in 1966 will be used primarily for recreational development on National Forest lands. (7,200) -6,236 1,419 -1,419 (Prior balances will acquire interest in roads or rights-of-way; future activity will be financed in Forest roads and trails.) -1,001 (Prior balances acquired lands in the Superior National Forest.) Acquisition of lands for national forests: Superior National Forest. __402 Exp. 936 1,001 Special acts (special fund).. _402 NOA 70 70 Exp. 19 70 402 Exp. 65 40 Wasatch National Forest___402 NOA Exp. Assistance to States for tree plant- NOA ing 402 Exp. 250 4 1,000 997 150 345 50 1,000 1,015 1,000 3 55 r CO Cache National Forest Certain forest receipts otherwise payable to counties in Utah, Nevada, and California, are used to acquire lands within national forests. 70 70 1,000 -40 (Prior balances are used to acquire lands on the Cache National Forest.) -150 -295 Completes authorization for purchases of land, authorized by 76 Stat. 545-546. Aid is given, mainly through grants, for reforestation work. -15 a Expenses, brush disposal (perma- NOA nent, indefinite, special fund) _402 Exp. 9,531 8,255 9,500 9,000 9,500 9,500 500 Certain receipts from purchasers of timber are applied to disposal of brush on cutover areas. Roads and trails for States, na- NOA tional forests fund (permanent, Exp. indefinite, special fund) 402 12,001 12,001 13,141 13,141 13,400 13,400 259 259 Permanent law makes available 10 % of national forests receipts for construction and maintenance of roads and trails in national forests within the States from which the receipts were derived. Other Forest Service permanent NOA appropriations 402 Exp. 30,754 30,725 33,658 33,684 34,368 34,375 710 691 I nongovernmental funds: Advances and reimbursements_402 Exp. Provides generally for the use of a portion of the revenues from operations on national forests and national grasslands for payment to States and counties to be used primarily for roads and schools. -264 -477 400 877 -918 -922 -335 587 344,092 1 356,483 14,000 B 3,924 346,737 1 340,022 A 14,000 -5,533 Working capital fund, Forest Serv- Exp. ice 402 NOA 341,766 Exp. 317,040 Total, Department of Agricul- NOA ture. 8,051,561 Total, Forest Service Exp. A 6,262,326 1 6,935,640 11,433,029 A-313,241 M,769,759 B 23,343 6,569,792 1 —500,512 7,896,864 6,975,086 A-140,532 A-213,509 23,378 1,137 B A B -20,715 B o o w > o Proposed for separate transmittal. other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. to o ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 1966 to Increase or Explanation of NOA requests Account and functional code (-) DEPARTMENT OF COMMERCE GENERAL ADMINISTRATION General and special funds: Salaries and expenses 506 NOA 4,000 3,987 | B 270 4,240 4,300 43 4,310 70 Exp. 4.138 Participation in Century 21 Expo- Exp. sition 506 16 75 Participation in New York World's Exp. Fair ___506 11,342 1,777 1,530 -18 5 5 506 Exp. 22 148 -45 -193 Total, general administration. NOA 4,000 3,987 4,300 43 5,800 -445 5,000 -13,700 -8,500 Public enterprise funds: Aviation war risk insurance re- Exp. volving fund 501 Intragovernmental funds: Working capital fund B?7ft Exp. 15,500 6.245 13,484 11,733 13,700 13,500 -75 1 i -247 The estimate provides for continuation of program at the 1965 level. a (Activity completed in 1962. Expenditures are for settlement of outstanding claims.) (Fair will close in October 1965.) (Contingent liability is estimated at $8,789 million.) ECONOMIC DEVELOPMENT Area Redevelopment Administration General and special funds: Operations 507 NOA Exp. (Expenditures are primarily for technical assistance to disadvantaged areas approved in prior years.) Grants for public facilities 507 Exp. 11.409 10,500 -1,000 400,000 A 40,000 400,000 40,000 59,500 -59,500 -500 11,500 A Proposed area redevelopment pro- NOA gram (proposed legislation) -507 Exp. Legislation will be submitted to extend and strengthen the area redevelopment program. The program is designed to improve the opportunities for the creation of new employment in areas of substantial and persistent unemployment and underemployment. Federal assistance will be provided for: industrial and commercial loans; public facility loans and grants; supplementary grants; technical assistance and planning grants. Public enterprise funds: Area redevelopment fund 507 NOA Exp. Total, Area Redevelopment NOA Administration. Exp. 132,000 46,069 59,500 60,000 145,484 69.211 73,200 85,000 A (Expenditures are for industrial and public facility loans previously approved.) W 326,800 400,000 75,000 1 30,000 A 40,000 Community Relations Service General and special funds: Salaries and expenses 506 NOA Exp. 1,100 900 1,300 1,200 200 300 Increase provides full-year costs of conciliation service established by the Civil Rights Act of 1964. 3,000 2,900 3,500 3,400 500 500 Increase is to intensify sales promotion program. Visitors from overseas have increased 92% since 1961 to 972.000 in 1964. U.S. Travel Service Salaries and expenses A B 506 NOA Exp. 2,600 2.561 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. o a ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 Account and functional code 1966 Increase or Explanation of NOA requests (-) DEPARTMENT OF COMMERCE—Continued ECONOMIC DEVELOPMENT-Con. Office of Business Economics General and special funds: Salaries and expenses 506 NOA 2,017 ExP. 1,956 [ntragovernmental funds: Advances and reimbursements.506 Exp. -48 Total, Office of Business Eco- NOA nomics. Exp. 2,281 B 101 ! 2,301 2,755 373 2,660 359 Increase provides for further automation of the national income accounts, strengthening balance of payments computations, and additional income analysis. 3 2,017 1,908 2,281 B 101 2,301 1 2,755 373 2,660 359 14,700 B 509 14,997 ! 1 1 15,575 366 15,675 678 5,575 -10,575 6,056 -9,417 2,400 1,287 2,502 1,390 1,150 1,035 1,150 1,035 Bureau of the Census General and special funds: Salaries and expenses 506 NOA Exp. 1964 census of agriculture 506 NOA Exp. Preparation for 19th decennial NOA census 506 Exp. 1967 economic censuses 506 NOA Exp. td d 13,639 13,272 1,345 1,206 740 339 16,000 B 150 15,473 1,100 B 13 1,112 Increase will provide improved estimates of construction put-inplace and additional local area population estimates. The estimate provides for a major part of the tabulating and publishing of general census of U.S. farms. The estimate provides for the initiation of a list of residential addresses for use in mail enumeration in 1970. The estimate provides for planning and preparatory work on census of characteristics of U.S. businesses and industrial enterprises. 200 200 165 The estimate provides for planning and preparatory work on census of State and local governmental units. 165 -7,500 5,934 Supplemental is proposed for a survey of registration and voting statistics in selected areas, authorized by the Civil Rights Act. 6,488 -7,000 -5,319 Savings from automation permit the completion of census from previous appropriations. 1967 census of governments.-.506 NOA Exp. A Compilation of registration and NOA voting statistics 506 Exp. 7,500 A 554 A 1963 censuses of business, trans- NOA portation, manufactures, and Exp. mineral industries 506 8,500 6,829 1962 census of governments. __506 NOA Exp. 350 631 Modernization of computing equip- NOA ment 506 Exp. 4,500 7.953 313 -313 506 Exp. 356 7 -7 Intragovernmental funds: Advances and reimbursements_506 Exp. -313 Total, Bureau of the Census. NOA 29,074 Exp. 30,274 18 th decennial census 7,000 6,686 1,367 61 -61 (Activity completed in prior years.) M 38,800 | 7,500 B 672 38,650 ^554 A 24,900 26,800 | 6,488 A (Two large-scale computers were installed in 1964.) o o -22,072 -5,916 Business and Defense Services Administration General and special funds: Salaries and expenses _. 506 NOA 4,583 4,964 4,750 1 B 209 4,900 5,340 381 5.200 300 Exp. Greater emphasis will be devoted to analyzing commodity data. 1 Office of Trade Adjustment 100 Trade adjustment assistance..506 NOA 7 108 Exp. A B Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. -7 (Office transferred to Business and Defense Services Administration.) i ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and fu nctional code 1965 1966 Increase or Explanation of NOA requests (-) DEPARTMENT OF COMMERCE—Continued ECONOMIC DEVELOPMENT—Con. International Activities General and special funds—Continued Salaries and expenses 506 NOA 9,230 Exp. 7.917 9,471 [ B 247 9,450 *12,850 3,132 12,150 2,700 200 170 200 170 4,675 -70 4,500 -100 17,725 3,262 16,820 2,770 Salaries and expenses (special NOA foreign currency program) _. 506 Exp. 508 NOA 4,100 Exp. 4,085 Total, international activities. NOA 13,330 Exp. 12,002 Export control 4,575 1 B 170 4,600 14,046 1 B 417 14,050 D Additional funds will be used to strengthen the export expansion program by establishing two new trade centers in Europe, seven fairs in underdeveloped countries, and automating American and foreign trade lists. Estimate will provide partial financing for two trade fairs. Reduction will be possible through (1) decreasing the number of items that need to be licensed, and (2) initiating automation of the licensing function. Office of Field Services OS OS _. 506 NOA 3,715 Exp. 3,637 Total, economic development. NOA 200,903 Exp. 124,665 Salaries and expenses O 4,000 | B 131 4,025 141,177 A 7,500 B 1,530 152,733 A 554 4,300 169 4,250 225 59,820 | MOO,000 309,613 135,330 | M6.488 28,531 The estimate provides for increased efforts in stimulating American firms to seek and expand foreign markets for their products. SCIENCE AND TECHNOLOGY Coast and Geodetic Survey Salaries and expenses 506 NOA Exp. Construction of surveying ships NOA 506 Exp. Construction and equipment. _ 506 NOA Exp. Total, Coast and Geodetic NOA Survey. Exp. 24,944 27,022 1 B 155 28,064 13,000 8,570 9,000 10,164 8,700 -9,000 -1,464 575 417 970 395 -17 590 173 31,170 -5,582 37,700 -945 26,120 39,120 33,496 1 36,597 I B 155 38,645 f 30,200 3,023 28,410 346 The increase provides funds to operate two new oceanographic survey ships and new seismic and geomagnetic observatories. Visual flight charts will be improved and a survey of earthquake hazards initiated. Contracts planned in 1966 will be financed by prior year funds. Estimate provides improvements at seismic and geomagnetic observatories. Two new observatories will be set up in Alaska to permit rapid warnings of sea waves generated by submarine earthquakes. 3 O o Patent Office Salaries and expenses 506 NOA Exp. Intragovernmental funds: Advances and reimbursements. 506 Exp. Total, Patent Office NOA Exp. A B D F 29,198 27,301 -24 29,198 27,277 30,506 1 B 945 30,960 } w 33,700 2,249 32,850 1,890 Increase is for funds to automate the patent copy supply system and cover costs of printing increased numbers of patent issuances. -40 40 30,506 1 B 945 31,000 1 33,700 2,249 32,850 1,850 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. To carry out authorizing legislation to be proposed. Includes $500 thousand to carry out authorizing legislation to be proposed. to 5 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued idfu code 1964 1965 1966 Increase or Explanation of NOA requests <-) DEPARTMENT OF COMMERCE—Continued d SCIENCE AND TECHNOLOGY—Con. National Bureau of Standards General and special funds: Research and technical services NOA 506 Exp. Research and technical services NOA (special foreign currency pro- Exp. gram) 506 36,700 5,857 25.764 30,000 B 843 29,906 34,774 4,868 500 545 500 817 500 573 -244 Grants are made in "excess currency" countries to support research, supplementing domestic programs in scientific reference data. -1,770 -1,400 This partially finances new State weights and measures, and fully funds construction of certain additional facilities. -5,800 28,700 Increase is to strengthen the new National Standard Reference Data System and to operate and staff the new laboratories and facilities at Gaithersburg, Md. Plant and facilities 506 NOA Exp. 3,000 4,407 3,770 6,500 2,000 5.100 Construction of facilities 506 NOA Exp. 7,713 19,512 5,800 24,100 18,000 -6,100 The 1966 program will be financed by funds appropriated in prior years. 600 261 -339 Contract and grant program, chiefly in textile research, is being completed. Civilian industrial technology.506 NOA Exp. Salaries and expenses, Office of NOA Technical Services 506 Exp. 1,000 139 1,020 697 1,130 B37 -1,167 977 -977 Federal clearinghouse for acquisition, processing, and sale of unclassified Federal research reports and technical documents; activity transferred to "Research and technical services." CO O Intragovernmental funds: Working capital fund -4 ^ o © O (Estimated Government equity in the fund will be $174 million on June 30, 1966.) -310 1,530 41,200 j B 880 61,060 39,200 -2,880 58,400 -2,660 69,980 3,018 65,689 65,100 ] 1,862 64,976 69,125 4,149 Increase provides for maintenance and operation of new equipment, extension of specialized services to foresters and farmers, and improvement of river and flood forecasts. 506 NOA Exp. 10,400 10,187 10,400 11,104 13,510 13,420 3,110 2,316 Increase provides principally for augmentation of a program in experimental meteorology. Research and development (spe- NOA cial foreign currency program) Exp. 506 250 72 500 500 500 477 -23 Excess foreign currencies will be used to improve foreign observations and to study problems of climatic and hydrologic cycles in arid regions. Establishment of meteorological NOA facilities 506 Exp. 4,800 3,739 725 4,131 3,000 4,837 2,275 706 9,577 10,000 12,270 30,100 13,866 20,100 1,596 Advances and 506 Exp. -2,392 -1,840 1 reimbursements 506 Total, National Bureau of NOA Standards. Exp. 41,933 48,674 Weather Bureau General and special funds: 506 NOA Salaries and expenses Exp. Research and development Meteorological satellite operations NOA 506 Exp. Intragovernmental funds: Advances and reimbursements Exp. 506 Total, Weather Bureau B 136 NOA 79,946 Exp. 89,400 Total, science and technol- NOA ogy. Exp. B 64,496 190,196 198,847 Q Estimate continues the modernization program begun in 1956. Estimate includes spacecraft, launches, facilities, and services to obtain observations of worldwide cloud patterns from satellites, increase reflects depletion in 1965 of prior year balances. w > O o i 86,725 | 1,862 92,982 B 195,028 ] B 3,842 223,687 117,090 28,503 101,725 8,743 221,160 22,290 230,675 6,988 Proposed for separate transmittal, civilian pay increase supplemental. o ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 1966 to o Increase or decrease xplanation of NOA requests DEPARTMENT OF COMMERCE—Continued TRANSPORTATION Maritime Administration W General and special funds: Ship construction 502 NOA Exp. Operating-differential subsidies: Permanent, indefinite contract NOA authorization 502 Liquidation of contract authorization. Exp. Research and development 502 NOA Exp. Salaries and expenses 502 NOA Exp. Maritime training 502 NOA Exp. State marine schools 502 NOA Contract authorization (per- NOA manent, indefinite) 502 Liquidation of contract authorization. Exp. 112,500 86,752 124,900 81,934 124,850 101,100 186,626 196,000 190,000 (216,500) 203,037 (187,500) 212,787 (190,000) 198,000 -50 19,166 Estimate provides for subsidy of 1,845 voyages by 314 vessels. Decrease due primarily to withdrawal of the passenger vessel SS (2,500) America from subsidy and lower operating costs of new vessels. -14,787 -6,000 9,500 10.500 10,500 5,500 15,300 B 311 15,811 15,650 4,484 B 33 3,842 3,950 250 1,247 540 1,185 360 1,240 -180 55 (1.155) 1,409 (U«5) 1,711 (1,240) 1.600 (55) -111 7,000 7,756 15,500 15,762 Estimate provides for 16 new ships, acquisition of replaced ships and automation features on 26 recently built ships. 1,000 -5.000 Estimate'is for experimental operation of nuclear ship Savannah, and research to improve efficiency of U.S. merchant marine. 39 The estimates provide for continuation of program at substantially the 1965 level. -49 14,147 3,495 3,843 -567 1 The estimate provides for operation of the Federal Maritime Academy. Decrease due to smaller construction program. 3.372 Federal aid to State schools will continue at substantially the 1965 level. d o w a f fed Public enterprise funds: Federal ship mortgage insurance NOA fund (permanent, indefinite Exp. authorization to spend debt receipts) 502 3,900 6,907 -4.702 -4,260 Vessel operations revolving fund Exp. 502 -1.572 -571 -93 War risk insurance revolving fund Exp. 502 -185 -114 -252 -138 -14.773 9.402 4,400 -5,002 -5,703 306,850 351,909 | 346,550 B 344 330.600 325,600 (43,800) (48,350) Intragovernmental funds: Advances and reimbursements_502 Exp. Total, Maritime Administra- NOA tion Exp. 330,518 442 NOA occurs when requirements for payments under guarantees arise. None are anticipated in 1966. Guarantees involving a contingent liability of $580 million are estimated to be outstanding for 1966. 478 (Fund is substantially self-supporting.) (Contingent liability in the event of war is estimated at billion.) -5.000 Bureau of Public Roads Trust funds: Limitation on general administrative expenses. Federal-aid highways (liquidation of contract authorization). Improvement of the Pentagon road network. (52,600) on right-of-way investigation and safety research.) (3.249,150) (3,648.250) |(3.900,000) A(250.000) o o (1,750) (Appropriation is to liquidate contract authorization and meet administrative expenses for interstate, primary, secondary, and urban highways. These costs are payable from the highway trust fund.) (500) General and special funds: Forest highways: 503 Contract authorization: 33,000 Current NOA 33,000 33,666" Permanent NOA (33,000) (32,000) Liquidation of contract authori(33,000) 32,866 33.277 zation. Exp. 33,000 A Proposed for separate transmittal, other than pay increase supplemental. B Proposed for separate transmittal. civilian pay increase supplemental. (4,250) (Increase provides for expanded programs with increased emphasis (No additional financing required to complete the program.) I The Federal-Aid Highway Act of 1964 made available $33 million of NOA for each of the years 1965 and 1966. (1,000) 134 fcO to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 1965 1966 Increase or Explanation of NOA requests (-) DEPARTMENT OF COMMERCE—Continued 3 w TRANSPORTATION—Continued d Bureau of Public Roads—Continued General and special funds—Continued Public lands highways: 503 Contract authorization: Current NOA Permanent __- NOA Liquidation of contract authorization. Exp. 9,000 (4,000) 4.710 Inter-American Highway 152 NOA Liquidation of contract authorization. Exp. 9,000 (6,000) 1,813 4,473 Access roads (act of Sept. 7, 1950) Exp. 503 4 26 -26 Woodrow Wilson Memorial Bridge Exp. 503 3 6 -6 Construction, operation, and Exp. maintenance of roads, Alaska. 503 13 Control of outdoor advertising __ Exp. 503 399 1 7,000 (7.000) 9.980 2,000 The Federal-Aid Highway Act of 1964 made available $7 million for each of the years 1965 and 1966. 7,000 (9,000) 9.000 (2,000) -980 4,000 (6,000) 11,800 2,000 The Federal-Aid Highway Act of 1962 authorized $32 million to complete the Inter-American highway. The 1966 request will (6,000) 7.327 permit the program to proceed on schedule. (The purpose of the appropriation has been met.) OS (The bridge was officially opened to traffic in December 1961.) (The purpose of the appropriation has been met.) 177 -177 (Prior-year appropriations are available for incentive payments to States agreeing to control highway advertising.) Study of highway program for Exp. Alaska 503 140 260 -260 Intragovernmental funds: Advances and reimbursements. 503 Exp. 1 12 -12 Total, Bureau of Public Roads NOA Exp. 51,000 40,359 42,000 47,800 2,000 2,000 922 2,000 44,000 53,800 2,000 6,000 3,200 j 20,000 2,500 | A 10,000 21,200 (A 1963 appropriation financed a study undertaken in 1964 and 1965.) Transportation Research General and special funds: Transportation research 506 NOA Exp. A 10,500 Increase provides for acceleration of Boston to Washington Corridor transportation studies, and legislation will be proposed to fund tests and demonstrations of high-speed rail service. fel Inland Waterways Corporation Public enterprise funds: Inland Waterways Corporation Exp. Fund, ___502 Limitation on administrative expenses. (The Inland Waterways Corporation Act was repealed on July 19, 1963, by Public Law 88-67. The fund balance has been returned to the Treasury.) (2) NOA 383,518 Exp. 347,332 Total, Department of Com- NOA merce. 778,618 Exp. 686,344 Total, transportation A B -800 395,909 B 344 380,400 736,101 A 7,500 B 5,986 757,346 A 554 B 5,719 393,750 | 20,000 381,900 1 A 10,000 17,497 679,030 | 420,000 349,443 753,438 1 56,488 B 267 46,574 A A A Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. 11,500 > a I o to 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)— Continued to h1 1964 enacted Account and functional code 1965 estimate 1966 estimate Increase or decrease ( Explanation of NOA requests DEPARTMENT OF DEFENSE—MILITARY 3 MILITARY PERSONNEL (Functional code 051) General and special funds: Military personnel, Army Military personnel, Navy d NOA Exp. 4,000,517 4,164,735 NOA 2,857,483 Exp. 2,976,887 Military personnel, Marine Corps. NOA 725,600 Exp. 734,781 4,102,600 4,250,000 -118,400 3,045,000 c 29,000 3,055,000 -19,000 3,140,000 3,150,000 10,000 4,221,000 4,260,000 741,000 c 9,500 750,000 -10,000 749,900 -600 760,000 10,000 Decrease reflects larger transfers from revolving funds, and a reduction of 10,179 military personnel, partly offset by the full year effect of the military pay increase, effective Sept. I, 1964. Estimate for 1966 will support average strength of 961,735. Supplemental in 1965 is for part-year costs of military pay increase, effective Sept. 1, 1964. Decrease in 1966 reflects larger transfers from revolving funds, partly offset by an increase of 10,733 military personnel and the full year effect of the military pay increase. Estimate for 1966 will support average strength of 679,502. Supplemental in 1965 is for part-year costs of military pay increase, effective Sept. 1, 1964. Decrease in 1966 reflects larger transfers from revolving funds, partly offset by an increase of 3,121 military personnel and the full year effect of the pay increase. Estimate for 1966 will support average strength of 191,395. NOA 4,367,700 4,383,000 c 59,500 4,393,800 -48,700 Exp. 4,435,779 4,516,000 4,424,000 -92,000 Supplemental in 1965 is for part-year costs of military pay increase, effective Sept. 1, 1964. Decrease in 1966 reflects a reduction of 19,417 military personnel and larger transfers from revolving funds, partly offset by the full year effect of the pay increase. Estimate for 1966 will support average strength of 820,270. National Guard and Reserve per- NOA sonnel, Army. Exp. 459,600 520,400 517,000 459,800 450,000 -60,600 -67,000 It is planned to reduce year-end paid drill strength from 655,000 to 575,000 due to realignment of these forces. The estimate also supports a new ROTC scholarship and summer camp program. Military personnel, Air Force 437,721 00 o F CO National Guard personnel, Air NOA Force. Exp. 61,100 58,669 69,300 65,000 71,300 67,000 2,000 2,000 Increase reflects an increase in year-end strength from 75,000 to 77,000. Reserve personnel, Navy NOA Exp. 95,100 92,734 99,200 100,000 105,100 100,000 5,900 Increase reflects the full year effect of the military pay increase, effective Sept. 1, 1964. The estimate continues a year-end paid drill strength of 126,000. Reserve personnel, Marine Corps. NOA Exp. 29,900 28,988 30,900 32,000 33,000 31,000 2,100 -1,000 The estimate continues a year-end paid drill strength of 45,500, but permits average strength to go up from 43,800 to 44,800. Reserve personnel, Air Force NOA Exp. 57,700 55,391 59,200 60,000 60,500 58,000 1,300 -2,000 Year-end paid drill strength wil Igo down from 48,800 to 45,800, but permits a net increase in strength of flying units. Estimate also supports a new ROTC scholarship and summer camp program. Retired pay, Defense NOA 1,228,000 1,209,447 1,399,000 1,380,000 1,529,000 1.510,000 130,000 130,000 Increase is for an average of 515,651 retired personnel in 1966 as compared with 464,592 for 1965. 14,568,000 114,560,000 c 98,000 14,820,000 14,800,000 -106,000 Exp. 13,882,700 Total, military personnel NOA 14.195,131 -20,000 o a Exp. OPERATION AND MAINTENANCE (Functional Code 051) Operation and maintenance, NOA Army. B c 3,353,066 3,433,447 1 3,379,100 B 43,910 In 1966, reductions which result from completion of troop tests of air assault concepts are more than offset by increased costs of aircraft operations. The overall decrease in 1966 results, however, from the transfer of reserve forces costs out of this account, as shown comparatively in the 1964 and 1965 columns. w a % o Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. to ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES 1964 Account and functional code 1965 1966 B Y AGENCY (in thousands of dollars)—Continued to Increase or Explanation of NOA requests <-) DEPARTMENT OF DEFENSE—MILITARY—Continued OPERATION AND MAINTENANCE— Continued (Functional Code 051)—Continued General and special funds—Continued Operation and maintenance, Army— Continued Liquidation of contract authorization. (54,044) (The $54 million for liquidation of contract authority will cover obligations incurred in excess of appropriations during the Berlin crisis in 1962, as authorized by section 612 (c), Department of Defense Appropriation Act, 1962.) a 98,700 a Comparative NOA Exp. Less: Expenditures related to NOA comparative deduction above. Comparative expenditures. and m a i n t e n a n c e , NOA o (54,044) 87,007 Less: Army Reserve and Reserve Officers' Training Corps items requested under "Operation and maintenance, Army National Guard and Reserve" for 1966. Operation Navy. d Exp. 3,266,059 3,378,657 3,379,100 3,455,020 85,850 3,436,000 96,000 3,326,000 6,000 3,369,170 3,340,000 3,320,000 -20,000 2,908,463 3,142,666 | 3,332,100 B 34,122 3,160,000 3,220,000 155,312 2,894,146 443 CO OS 60,000 Increase reflects additional Polaris submarines in the fleet, installation and maintenance of improved communications equipment, greater numbers of missiles on ships and aircraft, and higher costs of operating and maintaining more complex ships and aircraft. Operation and Marine Corps. maintenance, Operation and maintenance, Air Force. NOA 191,299 Exp. 175,967 NOA 4,337,159 Exp. 4,473,198 187,899 1 B l,621 190,200 192,500 2,980 188,500 -1.700 4,567,133 | 4,464,100 -150,749 B 47,716 4,440,000 4,370,000 -70,000 Decrease reflects phase-out of older missile systems and bomber squadrons, and the elimination of military bases no longer required. 15,804 -20,000 Increase is for additional functions of the Defense Supply Agency, and certain classified activities. Operation and maintenance, Defense agencies. NOA Exp. 478,822 472,209 517,958 520,000 533,762 500,000 Operation and m a i n t e n a n c e , Army National Guard and Reserve. Add: Army Reserve and Reserve Officers' Training Corps items appropriated under "Operation and maintenance, Army" for 1964 and 1965. NOA 180,790 1 188,000 B 3,424 292,000 Increase in 1966 reflects support for an expansion in the National Guard from 385,000 to 575,000, and the cost of the new ROTC scholarship program. These are partially offset by savings from a reduction in strength of the Army Reserve. 87,007 98,700 267,797 290,124 292,000 182,007 187,000 282,000 Add: Expenditures related to comparative NOA addition above. 85,850 96,000 6,000 Comparative expenditures. 267,857 283,000 288,000 5,000 NOA 220,100 238,000 448 Exp. 222,635 236,000 1 B 1,552 234,000 230,000 -4,000 459 460 -25 -10 Comparative NOA Exp. Operation and maintenance, Air National Guard. National Board for the Promotion of Rifle Practice, Army. B NOA Exp. 528 498 Estimate continues support of 3 divisions and related support units at a high state of combat readiness. 484 470 o o 1,876 •n Increase in 1966 reflects higher aircraft operating costs due to mission and equipment changes. Decrease reflects reduced travel to international matches. Proposed for separate transmittal, civilian pay increase supplemental. to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code Increase or 1966 1965 I 00 Explanation of NOA requests (-) 1DEPARTMENT OF DEFENSE—MILITARY—Continued OPERATION AND MAINTENANCE— Continued w w (Functional Code 051)—Continued General and special funds—Continued Claims, Defense NOA Reappropriation_ . __ NOA Exp. d 24,000 -5,000 19,421 23,000 J 6,000 28,700 24,000 -4,700 NOA Exp. 15,000 12,319 15,000 10,600 15,000 12,000 1.400 Court of Military Appeals, De- NOA fense. Exp. 509 Contingencies, Defense 19,000 530 1 Decrease reflects the large number of claims paid in 1965. This account provides the Secretary of Defense with funds to meet emergencies and extraordinary expenses. Caseload is expected to continue at the 1965 level. 579 BAQ 489 560 560 Miscellaneous expired accounts. __ Exp. 24,132 12,470 6,480 -5,990 Total, operation and mainte- NOA nance. Exp. 11 ,704,737 12,318,117 112,471,600 B 132,394 12,220,000 12,160,000 21,089 11 ,932,040 -60,000 PROCUREMENT (Functional code 051) Procurement of equipment and NOA Exp. missiles, Army. 2 ,906,294 2 .314,565 1,656,396 1,970,000 E l,223,100 1,880,000 -433,296 -90,000 Program continues to improve firepower, mobility, communications, and logistical support necessary for Army tactical forces. Modernization of weapons and equipment is continued. Decrease reflects reduced buying as stocks approach objectives. u o a GO O Procurement of aircraft and mis- NOA siles, Navy. Exp. 2,889,145 2,758,833 2 ,496,358 2 .470,000 D Shipbuilding and conversion, Navy. NOA Exp. 2,059,589 2,087.603 1 ,930,076 1,820,000 D Other procurement, Navy NOA Exp. 1,174,931 888.714 1,040,331 955,000 Procurement, Marine Corps NOA Exp. 201,960 238.351 162,944 182,000 Aircraft procurement, Air Force. _ NOA Exp. 3,385,575 3.893.859 3 ,563,737 3 ,450,000 Missile procurement, Air Force. __ NOA Exp. 2,105,990 2,100,569 1 ,715,200 1,590,000 -216,558 50.000 Decrease results mainly from (a) major reprograming of prior year funds for 1966 needs, (b) declines in procurement of support aircraft and in the level of aircraft modification, and (c) reduced buying of Polaris missiles as stocks near objectives. l,501,100 -428,976 130,000 1,950,000 Fleet modernization and replacement program will continue with primary emphasis on antisubmarine and amphibious warfare. The 1966 program provides for construction or conversion of 73 ships. Decrease reflects prior financing available. 2,279,800 2,520.000 1,159,100 1,070,000 118,769 115.000 Modernization of fleet equipment and weapons will continue, with emphasis on antisubmarine forces through purchase of improved weapons, detection devices, and other equipment. 43,800 175,000 -119,144 -7,000 Decrease reflects general achievement of readiness objectives of weapons and equipment. The 1966 program continues to stress improvements in firepower, mobility, and communications. 3,550,200 3.220.000 -13,537 -230,000 Decreases in procurement of trainer, other support aircraft, and airlift aircraft more than offset increased procurement of tactical and special reconnaissance aircraft. D796,100 1,460,000 -919,100 -130,000 Decrease reflects the high levels of missile forces already achieved. Reduced funding is needed to complete procurement and installation of approved forces and to provide for upgrading and modification of operational missiles. E D Other procurement, Air Force NOA Exp. 878,299 964,821 759,096 752,000 834,500 885,000 75,404 133,000 This program will continue procurement of conventional ordnance and intelligence, warning, communications, and control systems, primarily to support Air Force worldwide strategic and tactical forces. The principal increases are in conventional ordnance and supporting equipment. Procurement, Defense agencies. _ _ NOA Exp. 43,614 34,822 62,000 46,000 24,000 40.000 -38,000 -6.000 Decrease reflects reduced procurement by the Defense Communications Agency and by other departmentwide activities. B D E Proposed for separate transmittal, civilian pay increase supplemental. To carry out authorizing legislation to be proposed. Partly to carry out authorizing legislation to be proposed. > SI O to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued .964 Account an d functional code t 1966 1965 Increase or Explanation of NOA requests DEPARTMENT OF DEFENSE—MILITARY—Continued PROCUREMENT—Continued 3 (Functional code 051)—Continued General and special funds—Continued Aircraft and related procurement, Exp. Navy. Total, procurement NOA Exp. 68,689 20,000 40,000 15,645,397 13,386,138 11,411,700 15,350,826 13,275,000 13,220,000 -20,000 d (Program needs are now provided in other appropriations above.) -1,974,438 -55,000 s RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (Functional code 051) Research, development, test, and NOA evaluation, Army. Exp. 1,401,582 1,338,005 1,368,471 1,400,000 D Research, development, test, and evaluation, Navy. NOA Exp. Research, development, test, and evaluation, Air Force. NOA Exp. 1,560,975 1,577,846 3,544,384 3,721,620 1,352,315 1,450,000 3,148,900 3,350,000 Research, development, test, and evaluation, Defense agencies. NOA Exp. 475,438 383,977 496,688 475,000 o 1,438,000 1,375,000 69,529 -25,000 Estimate includes increases in research and on development of the Nike-X system. Emphasis on limited war needs will be continued. D 1,472,600 1,395,000 120,285 -55,000 Increase is mainly due to further expansion of antisubmarine warfare projects and an improved version of the Polaris missile. D 3,147,800 -1,100 3,140,000 -210,000 Increases for initiation of development programs, such as the C-5A cargo transport and certain space programs, are more than offset by decreases for development of strategic offensive systems. 3,712 -15.000 Programs will continue in ballistic missile defense, nuclear underground testing, nuclear test detection, and remote area conflict, and tests will be conducted on aircraft penetration problems. D 500,400 460,000 Emergency fund, Defense Total, research, development, test, and evaluation. NOA Exp. 1,779 118,293 25,000 150,000 30,000 31,707 5,000 NOA Exp. 6,984,158 7,021,448 6,484,667 6,700,000 6,708,800 6,400,000 224,133 -300.000 Funds are transferred to other appropriations for prompt exploitation of research and development opportunities. The 1964 and 1965 amounts are balances remaining after such transfers. MILITARY CONSTRUCTION (Functional code 051) Military construction, Army NOA Exp. 200,646 211,939 300,393 200,000 E 441,400 260,000 141,007 60.000 Increase is largely for replacement of World War 11 troop housing, bachelor officer quarters, maintenance and administrative facilities, and classified facilities. Military construction. Navy NOA Exp. 198,853 183,737 247,867 225,000 E 338,300 220,000 90,433 -5,000 Increase is for replacement of World War II troop housing, bachelor officer quarters, training and research facilities, and shipyard modernization. Military construction, Air Force. _ NOA Exp. 468,275 535,865 332,101 500,000 E 422,000 385,000 89,899 -115,000 Increase is for replacement of World War II troop housing, bachelor officer quarters, administrative facilities, a Titan III missile launch complex at Vandenberg Air Force Base, and facilities to accommodate missions transferred due to base closures. o o Defense NOA Exp. 25,014 28,634 12,656 29,000 83,200 18,000 70,544 -11,000 Estimate includes $50 million for construction of facilities which may be required to meet emergency situations. A new building for the Defense Intelligence Agency is also included. td Military construction, Army Na- NOA tional Guard. Exp. 5,700 13,840 10,800 11,000 8,000 -10,800 -3,000 An expanded construction program in 1966 will be financed from balances transferred from Military construction, Army Reserve. Military construction, Air Na- NOA tional Guard. Exp. 16,000 14.527 14,000 15,000 10,000 10,000 -4,000 -5,000 Estimate reflects a declining level of construction as a result of mission and equipment changes. 3,666 -5,000 -1.000 Decrease reflects transfer of Army Reserve facilities to the National Guard. Military construction, agencies. 4,500 5,000 6,743 4,000 To carry out authorizing legislation to be proposed. Partly to carry out authorizing legislation to be proposed. Military construction, Army Re- NOA serve. Exp. D E E E W ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted .tional 1965 1966 Increase or decrease (-) to to to Explanation of NOA requests DEPARTMENT OF DEFENSE—MILITARY—Continued MILITARY CONSTRUCTION-Continued (Functional code 051)—Continued General and special funds—Continued Military construction, Naval Re- NOA serve. Exp. 6,000 6,538 7,000 7,000 E 9,500 7,000 2,500 Increase is for the replacement of an aircraft hangar, in addition to the normal facility replacement program. Military construction, Air Force NOA Reserve. Exp. 4,000 3,969 5,000 4,000 E 4,000 4,000 -1,000 Estimate provides for an increased obligation program of $2 million made possible by project savings in 1965. NOA Exp. 20,500 20,500 5,000 5,000 5,000 5,000 Total, military construction. _ NOA Exp. 949,488 1,026,292 939,817 1,000,000 1,313,400 920,000 Loran stations, Defense Estimate provides facilities for this navigation system. a 3 373,583 -80,000 FAMILY HOUSING (Functional code 051) CO Family housing, Defense Reappropriation NOA NOA 637,406 1 6,295 579,519 D 735,600 104,449 630,000 660,000 30,000 Increase reflects proposed construction of 12,500 units, compared with 8,250 in 1965. Additional funds are also required to operate and maintain the increasing number of units. 74,985 74,000 79,200 75,000 4,215 1,000 Increase is primarily for additional matching funds to support the expanding civil defense efforts of State and local governments. 631,151 Exp. CIVIL DEFENSE (Functional code 051) Operation and maintenance, civil NOA defense. Exp. 70,312 51,993 o Shelter, construction, and research NOA and development, civil defense. Exp. 41,250 37,338 30,200 42,000 114,700 34.500 84,500 -7,500 Increase is primarily for expansion of national fallout shelter inventory, construction of Federal regional emergency operating centers, and for increased research on survival techniques. 352 300 500 200 (Remaining funds will be used for site surveys and planning for construction of 7 Federal regional emergency operating centers.) 17,143 8,700 -8,700 (Obligations incurred in 1962 and prior years are liquidated under this account.) 111,562 106,825 105,185 125,000 193,900 110,000 88,715 -15.000 Defense production guarantees. _ _ Exp. 3,729 1,675 1.759 84 Laundry service, Naval Academy. Exp. 42 1 6 5 (Estimate contemplates receipts and expenditures of about $720 thousand, slightly lower than the 1965 level.) Construction defense. of facilities, Civil defense, Defense. civil Exp. Department Total, civil defense of Exp. NOA Exp. REVOLVING AND MANAGEMENT FUNDS (Functional code 051) Public enterprise funds: (Purchase cost of defaulted loans will exceed revenues in 1966.) Intragovernmental funds: Army stock fund Exp. -42,582 -93,800 -133,000 -39,200 (Sales will continue to exceed purchases in 1966 reflecting the sale of stock not requiring replacement.) Navy stock fund Exp. -33,633 -20,000 -53,000 -33,000 (Sales will continue to exceed purchases in 1966 reflecting the sale of stock not requiring replacement.) Marine Corps stock fund Exp. 8,790 -4,400 -12,200 -7,800 (Sales will continue to exceed purchases in 1966 reflecting the sale of stock not requiring replacement.) Air Force stock fund Exp. -28,920 6,200 -12.800 -19,000 (Sales will exceed purchases in 1966 due to the sale of fuel inventories no longer required.) Defense stock fund Exp. -184,103 -180,000 -155,000 25,000 (Sales will not exceed purchases by as much as in 1965 due to reduced stocks available for sale without replacement.) D E To carry out authorizing legislation to be proposed. Partly to carry out authorizing legislation to be proposed. o o to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 1966 Increase or Explanation of NOA requests (-) DEPARTMENT OF DEFENSE—MILITAR Y—Continued ft) W REVOLVING AND MANAGEMENT FUNDS—Continued O (Functional code 051)—Continued Army industrial fund Exp. -45,994 43,485 24,155 -19,330 (Expenditures continue in excess of collections as work is accomplished on prepaid orders.) Navy industrial fund Exp. -110.065 62.189 6,900 -55,289 (Work performed in 1965 and 1966 will be partly financed from prepaid orders in prior years.) _ Exp. 29,545 -29,533 -10,000 19,533 (Services performed in prior years will cause collections to exceed expenditures in 1965 and 1966.) Defense industrial fund Exp. -3,051 -500 -16,140 -15,640 (Net expenditures will decrease because of accelerated billing procedures.) Army management fund - Exp. 11,743 Navy management fund Exp. -61,336 -456,000 -11,000 Air Force management fund Exp. 1,309 300 300 management Exp. 17 9 Exp. 437 Air Force industrial fund__ Defense fund. agencies Naval working fund (Fund will operate at $339 million level in 1966.) 445.000 (Total activity of $1.1 billion is forecast for 1966.) (Liquidation of prior year obligations continues.) -9 (Fund is not to be used in 1966.) (Estimate reflects an activity level of $18 million in 1966.) GO i Consolidated working funds, Army. Exp. 1,590 374 20 -354 Total, revolving and manage- Exp. ment funds. -452,483 -670,000 -370,000 300,000 Total. Department of De- NOA fense—Military. 49,921,742 48,433,074 B 132,394 < 98,000 47,395,000 -1,268,468 49,759,598 47.875,206 B 47,894,400 B 3,000 ^2,600 -200,000 I Exp. f 129,394 C95.400 (Estimate reflects liquidation of prior year obligations.) DEPARTMENT OF DEFENSE—CIVIL DEPARTMENT OF THE ARMY Cemeterial Expenses General and special funds: Salaries and expenses 805 NOA Exp. 10,800 10,891 13,295 ] 1,770 B 99 12,055 A I45 14,410 1 A 890 3,100 22,194 21,300 23,988 24,200 1,794 2,900 Provides funds for 216 flood control, navigation, and beach erosion studies, of which 35 will be initiated in 1966. A comprehensive river basin survey for the Columbia-Pacific Northwest region and a special study of Great Lakes water levels will be initiated. 988,215 44,812 948,700 1 A 100 f 25,924 A 1965 supplemental will permit an early construction start on Lower Granite lock and dam. Funds in 1966 will continue construction on 223 projects; 43 projects, costing $684 million, will be completed and 37 projects, costing $777 million, will be started. Preconstruction planning will continue on 70 projects and be initiated on 19. A J 13,739 -1,425 Supplemental for 1965 is for the Federal cost of the permanent John F. Kennedy gravesite. Costs of increased interments and headstone applications are more than offset by a decrease in construction. w o o w 1 Corps of Engineers—Civil General investigations Construction, general. A B c 401 NOA Exp. .401 19,115 18.218 NOA 827,146 Exp. 822,176 942,803 1 A 600 [ 922,376 A 500 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. o to bO Ox ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollar.)—Continued 1964 enacted Account and functional code 1965 estimate 1966 estimate Increase or decrease Explanation of NOA requests DEPARTMENT OF DEFENSE—CIVIL—Continued DEPARTMENT OF THE ARMY—Con. Corps of Engineers—Civil—Continued General and special funds—Continued Operation and maintenance, gen- NOA eral .401 155,700 Exp. 158.138 Flood control, hurricane, and shore NOA protection emergencies 401 Exp. 158,676 ] A l,700 B 312 153,700 M,600 172,862 12,174 172.000 1 A 100 16,800 4,150 4,500 4,000 -500 16,662 499 16,600 200 77,060 77.600 -802 -400 J 401 NOA 15,000 Exp. 14,793 15,575 ) B 588 \ 16,400 Flood control, Mississippi River NOA and tributaries 401 Exp. 77,862 76,643 77,862 78,000 U.S. section, Saint Lawrence River NOA Joint Board of Engineers. _ _401 Exp. 10 General expenses 1-4,150 The supplemental in 1965 is for increased wage board pay. Workload in 1966 involves maintenance of 469 projects. Emergency operations to combatflooddisaster situations will be carried out with funds appropriated in prior years. Increase provides for management and supervision of larger program workload. GO f Construction is continued on 10 major project features, and provision is made for project operation and essential maintenance. CO 3 con- Exp. 401 12 Payments to States, Flood Control NOA Act of 1954 (permanent, indef- Exp. inite, special fimd) 401 1,721 1,719 International gresses navigation -1 1 Activities of the Board were terminated in 1965. (Final costs were liquidated in 1964.) 1,828 1,721 1,828 1,828 107 Three-fourths of receipts from lease of Federal lands acquired for flood control, navigation, and allied purposes are paid to States in which the projects are situated. a a Hydraulic mining in California, NOA debris fund (permanent, indef- Exp. inite, special fund) 401 18 18 18 24 18 18 -6 Maintenance and operation of NOA dams and other improvements Exp. of navigable waters (permanent, indefinite, special fund) 401 154 148 154 159 154 154 -5 20 37 Revolving fund, Corps of Engi- Exp. neers—Civil 410 820 -318 Total, Corps of Engineers— NOA Civil. 1,096,726 Intragovernmental funds: Advances and reimbursements, Exp. Corps of Engineers—Civil. _401 Exp. 1.092.708 Fees paid by mine operators for depositing mine debris in restraining works are used for their maintenance. Half of the receipts from licenses issued by the Federal Power Commission for non-Federal projects on navigable waters are used for maintenance and operation of dams and other navigational structures and for navigation improvements. -37 -300 1,223,260 11,280,787 A 2,300 B 900 1.197,900 1.244,800 1 A A 2,!00 200 18 (The fund provides centralized services and facilities to agency programs.) 5 3 O 54,327 45.000 o INTEROCEANIC CANAL COMMISSION General and special funds: Salaries and expenses 502 NOA Exp. 400 375 A A 7,500 25 | 7.500 7,100 7.150 A supplemental will be requested to initiate a sea level canal study after the Commission has made its plans. a UNITED STATES SOLDIERS' HOME Trust fund: Limitation on operation and maintenance and capital outlay. A B (6.662) (6.888) 1 (A77) (B83) (7.076) Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. (28) (The supplemental for 1965 is for increased wage board pay. Increase provides for an estimated rise from 1,895 to 1,995 domiciliary members and from 420 to 435 hospital patients.) to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 1965 1966 Increase or Explanation of NOA requests (-) DEPARTMENT OF DEFENSE—CIVIL—Continued RYUKYU ISLANDS, ARMY General and special funds: Administration. Ryukyu Islands, NOA Army 910 Exp. 10,000 10.899 14,441 13.500 14,733 14,200 292 700 Increase is for personnel formerly budgeted under military appropriations. Aid programs continue at authorized $12 million level. Construction of power systems Exp. 910 5,907 4,313 280 -4.033 (Expenditures are loans from prior year funds, decreasing because of planned completion of construction of the Kin powerplant in 1965.) A 22,000 A 15,000 22,000 15.000 Proposal is for payments to certain inhabitants of the Islands for damages by U.S. Forces before signing of the Japanese Peace Treaty. Ryukyuan pretreaty claims (pro- NOA posed legislation) 910 Exp. Total, Ryukyu Islands, Army NOA Exp. 10,000 14,441 16,806 17,813 A A 14,733 | 22,000 14,480 I 22,292 11.667 15.000 THE PANAMA CANAL General and special funds: Canal Zone government: Operating expenses 910 NOA Exp. Capital outlay 910 NOA Exp. Panama Canal Company: Thatcher Ferry Bridge 502 Exp. 31,211 1,199 26,271 29,088 | B 924 29,576 31.070 1,494 6,500 4,535 4,821 6,898 9,557 10,077 4,736 3,179 Provides $7,668 thousand for educational facilities, $736 thousand for health and sanitation, and $1,153 thousand for other needs. -311 365 -365 (Bridge went into service in 1962, and 2 more approaches were constructed in 1965.) 25,725 Increase will permit expanded operation of schools and hospitals to accommodate added Zone-based military personnel and dependents. to 8 Public enterprise funds: Panama Canal Company: Panama Canal Company fund 502 Limitation on general and administrative expenses. (8,924) Exp. 2,074 Total, The Panama Canal NOA 32,225 Exp. 32,569 (10,639) | (B208) 1,935 33,909 1 B 924 38,774 (11.169) -2,006 (322) (Increase due mostly to employees' States travel and to expenses of recruitment and repatriation.) -3,941 (Increase of $4.2 million in revenues and $0.3 million in expenditures is contemplated.) 40,768 5,935 39,141 367 MISCELLANEOUS ACCOUNTS General and special funds: Wildlife conservation, etc., mili- NOA tary reservations (permanent, Exp. indefinite, special funds) ___404 136 61 Total, Department of De- NOA 1,149,887 fense—Civil. Exp. A B 1,153,035 138 139 1,285,443 11,350,165 | A 4,070 \ A 29,500 B1,923 1,265,215 1,312,913 | A A23,590 2,245 B B82 1,841 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. 138 139 Game permit fee* are used to carry out a fish and game conservation program. 88,229 67,284 3 O O w > a to CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1966 estimate 1965 estimate Increase or decrease Explanation of NOA requests to 8 DEPARTMENT OF HEALTH, EDUCATION, A N D WELFARE FOOD AND DRUG ADMINISTRATION General and special funds: Salaries and expenses 651 NOA 35,621 39,198 1 l,170 38,728 B Exp. Buildings and facilities Pharmacological-animal tory building. 651 NOA Exp. labora- Exp. 651 Public enterprise fundst Revolving fund for certification Exp. and other services _ 651 Total, Food and Drug Admin- NOA istration. Exp. 37.004 4,466 313 I 10,875 2,399 50,352 9,984 48,372 9.644 Consumer protection will be strengthened with emphasis on the medical evaluation of new drugs and expanded research into the harmful effects of foods, drugs, cosmetics, and therapeutic devices. 6,324 7,339 -4,551 4.940 Provides laboratory equipment, new district facilities, and planning funds for an additional headquarters laboratory. 1,069 75 -111 379 -77 -456 40,087 50,073 | 56,676 5,433 38,275 41,581 55,634 14.053 -75 o (Laboratory was completed in 1964 from prior year's financing.) (Industry fees finance the certification of antibiotic drugs, insulin, and color additives and establishment of tolerances for pesticides.) a OFFICE OF EDUCATION General and special funds: Expansion and improvement of NOA vocational education 704 Exp. d 34,756 33,959 158,296 64,983 257,491 178.400 99,195 113.417 The increase is for an estimated 5.8 million students to be served in 1966 as compared to 5.2 million in 1965, construction and operation of a residential vocational school in the District of Columbia, and for research activities. The 1963 act emphasizes training in technical and other occupations in high demand. Higher education facilities construction 702 NOA Exp. Further endowment of colleges of agriculture and the mechanic arts 702 NOA Exp. Grants for public libraries 178,600 162,000 Grant increase will assist in construction of undergraduate classrooms, laboratories, and libraries at colleges and technical institutes. 11,950 11,950 463,150 3,000 11,950 11,950 641,750 165,000 11,950 11,950 NOA Exp. 7,500 7,443 55,000 18,136 55,000 37,000 18,864 Library services will be extended to approximately 2 million people in 1966 and services will be improved for an additional 20 million people. About 300 building projects will be under construction in 1966. Payments to school districts. _ 701 NOA Exp. 320,670 283,688 332,000 291,000 347,000 321,000 15,000 30,000 Payments will be made in support of 2 million children in 4,300 school districts affected by Federal activities. Assistance for school construction.. 701 NOA Exp. 23,740 50,601 58,400 37,000 50,190 47,000 -8,210 10,000 Program in 1966 will assist in providing approximately 2,300 classrooms for 68,000 pupils in school districts affected by Federal activities. Defense educational activities: (Assistance for elementary and secondary education) 701 NOA Exp. 62,750 69,841 97,100 82,000 112,700 104,000 15,600 22,000 Grants to States for guidance increase to authorized level. Grants for equipment and State supervision increase to fund 1965 amendments that extended eligibility to 5 new subject areas. (Assistance for higher education) 702 NOA Exp. 149,798 135,193 189,890 164,000 250,858 216,000 60,968 52,000 Finances full authorization for student loan, graduate fellowship and language development programs as expanded by 1965 amendments. (Other aids to education) __ 704 NOA Exp. 38,240 34.542 61,613 49,000 49,050 40,000 -12,563 -9,000 Amendments in 1965 extended teacher institutes to 6 new subject areas. Increase provides for an additional 2,581 teachers attending institutes. The increase is more than offset by a $15 million transfer to "Expansion and improvement of vocational education" appropriation. 704 Grants to land grant colleges will continue at maximum authorized level. NOA Exp. 250,788 239.576 348,603 295,000 412,608 360,000 64,005 65,000 Educational improvement for the NOA handicapped 704 Exp. 14,185 2,550 16,500 14,000 21,500 15,700 5,000 1,700 Total, defense educational activities. B a O O w ••4 > a a o Provides grants for teacher training and for research relating to the education of handicapped children. Increase will provide for an increase in number of full academic year fellowships. Proposed for separate transmittal, civilian pay increase supplemental. to 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 estimate 1966 estimate Increase or decrease to to CO Explanation of NOA requests DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued OFFICE OF EDUCATION—Continued General and special funds—Continued Cooperative research 704 NOA Exp. 11,500 7,686 15,840 8,500 25,000 14,000 9,160 5,500 Increases are to develop course content material primarily in the arts, humanities and social sciences, and to introduce the results of research in the schools. Educational research (special for- NOA eign currency program) 704 Exp. 500 138 500 340 1,000 400 500 60 Excess foreign currencies support research and training in foreign countries, supplementing studies to improve education in the United States. Foreign language training and area NOA 1,500 148 1,500 1,500 2,000 1,750 500 250 Grants are awarded for academic year and short-term study abroad to improve the teaching of modern foreign languages and area studies. 23,072 2,945 22,138 2,638 Increases provide staff to administer new grant programs, improve program planning and evaluation, and to formulate a statistical model of the educational system. 8,000 8,000 6.500 studies Salaries and expenses 704 Exp. 704 NOA Exp. Civil rights educational activ- NOA ities 704 Exp. Proposed legislation: Elementary and secondary edu- NOA cation 701 Exp. 14,761 14,251 19,699 1 B 428 19,500 8.000 1,500 Provides for institutes for school personnel, grants to schools and technical assistance to enable schools to deal more effectively with educational problems occasioned by desegregation. a A 1,255,000 1,255,000 A 500,000 500,000 Will provide funds to school districts enrolling substantial numbers of children from low-income families, widen educational opportunities for all children, especially the disadvantaged, handicapped, and unsuccessful, expand educational research, and stimulate educational improvements through assistance for instructional materials, library resources, and introduction of the results of educational research in the school program. A Higher education, including NOA student assistance and Exp. other 702 A 260,000 100,000 260,000 100.000 Will expand financial support for college students, especially from lowincome families, strengthen college libraries and small colleges and stimulate development of urban extension services. Colleges for agriculture and the NOA mechanic arts (permanent) .702 Exp. 2,550 2,550 2,550 2,550 2,550 2,550 Annual grants of $50 thousand are made to each State and to Puerto Rico. Promotion of vocational educa- NOA tion, act of Feb. 23, 1917 (per- Exp. manent, indefinite) 704 7,161 7,117 7,161 7,117 7,161 7,117 Grants to States are available to carry out the purposes of the 1963 Vocational Education Act. 3 W Intragovernmental funds: 10 -106 -1,768 116 701,561 659,888 1,499,149 B 428 776,192 659 NOA Exp. 88,700 84,287 100,100 96,799 124,000 119,000 23,900 22,201 Permits matching of available State funds to rehabilitate 145,000 handicapped persons—11% increase over 1965. 659 NOA Exp. 34,810 31,561 41,065 38,479 45,845 41,200 4,780 2,721 Supports 466 research and demonstration projects, 8,657 traineeships, 591 teaching grants, and 14 research and training centers. Research and training (special NOA foreign currency program)..659 Exp. 2,000 2,000 2,280 2,000 140 Excess foreign currencies permit use of overseas facilities for rehabilitation research and the interchange of rehabilitation experts. Advances and reimbursements _ 704 Exp. Total, Office of Education. _ _ NOA Exp. 1,866.272 11,881,695 1,515,000 1,192,015 11,015,823 A600,000 A VOCATIONAL REHABILITATION ADMINISTRATION General and special funds: Grants to States Research and training 2,420 3,140 B 3,415 92 | 3,209 Exp. 2,860 3,375 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Salaries and expenses A B 1,200 659 NOA 2,905 183 166 3 a Provides for strengthening administration of expanding grant programs and for additional specialized services to States and private nonprofit grantees. to 8 ANALYSIS O F NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 estimate 1966 Increase or decrease 00 Explanation of NOA requests DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued VOCATIONAL REHABILITATION ADMINISTRATION-Continucd General and special funds—Continued Improvements in vocational re- NOA habilitation (proposed legisla- Exp. tion) _._659 Total, Vocational Rehabilita- NOA tion Administration. Exp. A 128,415 146,305 119.908 Legislation will be proposed for project grants to expand State services, special matching for services to the severely disabled, and construction grants for work shops and rehabilitation centers. 175,260 | 38,863 10,000 165.995 1 32,228 A 7,000 A B92 140,767 1 PUBLIC HEALTH SERVICE Buildings and facilities 10,000 7.000 10,000 ^7,000 651 NOA Exp. 16,311 6.421 7,781 27,481 22,512 24,798 -14,731 2.683 Provides $4.5 million for the Bureau of State Services, $1.5 million for the Bureau of Medical Services, and $1.5 million for the National Institutes of Health. Community Health 4,181 Injury control 651 NOA 3,823 1 B 61 C 2 4,125 J Exp. 3,824 Chronic diseases and health of the NOA aged 651 55,851 53,722 1 B141 Exp. 39,268 55,281 ^45 J 4,199 313 Estimate provides for initiation of research training grant and fellowship programs and small increase in research grants. 4,091 -34 61,203 7,295 57,083 1.802 Provides increases to support additional projects for the detection of cervical cancer, expansion of renal dialysis demonstrations, further improvement in community programs for neurological and sensory diseases, and additional research grants. Formula grant for chronic illness includes specific increase for mental retardation activities in the States. CO o 28,401 29,828 1 B 105 c41 39,347 9,373 Exp. 19.365 32.924 49.378 16.454 NOA 29,641 63,482 30,252 Exp. 26.755 33,175 1 B 43 C 12 32.391 59.001 26.610 NOA 6,850 15,666 4,734 Exp. 6.635 14.998 4.110 NOA 9,599 10,392 287 Exp. 8.873 10,296 218 NOA 6,246 7,903 675 Exp. 4.564 7.795 827 NOA 11,249 21,631 1 B l7 21,075 -585 Exp. 9.889 21.356 20,492 -864 activities NOA 651 231,286 303,304 57,397 232.400 20.418 90,599 37.000 -20,183 22.300 Communicable disease activities NOA 651 Community health practice and research... —-651 Control of tuberculosis 651 Control of venereal diseases. .651 Dental services and resources.651 Nursing services and resources.651 Hospital construction Exp. Construction of health educational facilities 651 A B c NOA Exp. 194,482 10,914 1 B 14 c4 10.888 10,030 B 70 C 5 10.078 7,171 1 B 47 C10 6.968 245,846 1 B 56 C 5 211.982 110,782 14.70Q Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. Increase is for expansion of aedes aegypti eradication program and for expansion of epidemic intelligence service and training assistance to the States. Legislation is proposed to continue the expiring community vaccination grant program. Estimate reflects full authorization of $24.3 million for loans to students of medicine, dentistry, and nursing as well as increased support for professional public health training. Estimate provides increase for 2d year of renewed effort to control tuberculosis. Estimate continues the present effort to eradicate venereal disease. Increase provides for additional research grants, expansion of research in dental techniques, and start of a research training grant program. Increases for research training, fellowship, and graduate nurse training programs are more than offset by decrease resulting from transfer of student nurse loans to "Community health practice and research" appropriation. Estimate provides $100 million for community hospital grants. $70 million in construction grant support for long-term care facilities, and $60 million for grants to modernize obsolete medical facilities. Estimate includes $90 million for grants to support the construction of medical, dental, nursing, and allied professional teaching facilities. Decrease results from transfer of student loans to another appropriation and lower 1966 authorization for construction grants. ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 1966 1965 Account and functional code Increase or Explanation of NOA requests (-) DEPARTMENT OF HEALTH ,EDUCATION , AND WELFARE—Continued PUBLIC HEALTH SERVICE—Continued Community Health—Continued General and special funds—Continued George Washington University NOA Hospital construction 651 Exp. Construction of mental health Exp. facilities, Alaska... 651 Surveys and planning for hospital Exp. construction. 651 Total, community health NOA d 2,500 1.000 1,500 50 93 -500 -50 The Federal contribution was appropriated in 1964. Those funds will be fully expended by the end of 1966. (Construction was completed in 1964.) -6 CO 385,804 526,922 1 B 617,170 89,558 493,534 91.291 I 554 ^136 ] Exp. 313,741 402,243 Environmental health sciences. 651 NOA 4,235 9,350 B 25 C 5 7,154 15,933 14,438 7,284 20,930 B 51 c14 17,594 24,403 3,408 23.424 5.830 Environmental Health CO Air pollution. .65) Exp. 2,479 NOA 12,987 Exp. 12,748 6,553 Initiates a new program of grants to establish university institutes of environmental health sciences. Research will be expanded in 1966 on the health effects of continued use of pesticides. Increases research in the removal of sulfur from fuels and the health effects of sulfur compounds in the air, supports additional develop, ment of air pollution control devices, and steps up enforcement and abatement activities. Environmental engineering and NOA sanitation 651 9,070 Exp. 9,618 651 NOA 5,032 Exp. 9,117 B 23 c 30 9,124 9,293 123 9,035 -89 5,163 1 B 22 5,584 390 4,976 5,180 5,574 394 651 NOA 19,377 20,818 1,098 Exp. 17,153 19,598 | B 58 C 64 20,634 20.866 232 Water supply and water pollution NOA control 651 Exp. 29,042 35,009 1 40,601 5,475 27,905 33,750 38,974 5,224 Grants for waste treatment works NOA construction 651 Exp. 90,000 66,432 90,000 74,000 100,000 80,000 10,000 6,000 Environmental health activities Exp. 651 114 30 Occupational health Radiological health Total, environmental health. NOA 169,743 Exp. 141,426 B 117 -30 189,167 1 216,632 B 296 C 122 167,466 192,311 Continues research into botulism poisoning and increases support of the interstate shellfish certification program. New projects in housing and community sanitation will be initiated. Continues research and technical assistance in the field of health hazards arising from the work environment. Increased effort will be devoted in 1966 to the study of respiratory diseases of coal miners. The limited nuclear test ban treaty permits a general leveling off of this program at the 1965 level, except.for the one-time costs of equipping a new field laboratory building. Expands comprehensive river basin planning for pollution control, steps up enforcement and abatement efforts, and provides for staffing newly constructed field laboratories. Expands to a second site the acid mine drainage research project initiated in 1965. Steps up grants for pollution control works to the full amount authorized. (Activities now appear in other accounts.) 27,047 24,845 3 O Medical Services Hospitals and medical care A B c 651 NOA 51,293 Exp. 52,362 53,338 | A 427 B l,146 C 153 51,894 A 415 56,846 1,782 54,538 | A 12 2,241 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. o o Supplemental in 1965 represents wage board pay increases. 1966 estimates reflect savings from the closing in 1965 of 2 Public Health Service hospitals offset by increased costs resulting from greater use of contract care facilities; staffing increases to improve patient care and expand professional training at the 5 large hospitals and to meet greater outpatient workload; and an equipment replacement program. to CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued nd fu 1964 enacted ode 1965 1966 estimate Increase or decrease Explanation of NOA requests DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued 3 PUBLIC HEALTH SERVICE-Continued O Medical Senrices—Continued General and special funds—Continued Foreign quarantine activities. .651 NOA Exp. Indian health activities 651 NOA 6,554 6,851 B 145 C 13 6,658 6,596 59,693 61,620 A 238 1,000 C82 59,555 A238 7,311 302 6.900 242 3,153 62,800 3,007 Supplemental in 1965 represents wage board pay increases. Increases in 1966 result from staff increases to meet expanding outpatient workloads and to staff new facilities; to fund new medical residency training programs; to improve service in hospital and health programs; and to establish an equipment replacement program. Includes planning and construction of 1 hospital, 35 sanitation projects, and other miscellaneous health projects. 6,100 5,486 8,335 8,800 9,088 11,200 753 2,400 NOA 123,639 139,338 5,990 Exp. 124,683 130,144 A 665 B 2,291 C248 126,907 A653 135,438 A12 7,890 Construction of Indian health NOA facilities 651 Exp. Total, medical services 60,239 CO 66,093 B Exp. Increase in 1966 permits expansion of oversea visa examination program to 2 new locations. These latter costs are offset by examination fees deposited in general fund of the Treasury. o National Institutes of Health General research and services__651 NOA Exp. 154,206 150,108 164,190 142,094 National Institute of General NOA Medical Sciences 651 Exp. 58,719 -105,471 93,355 -48,739 Decrease reflects separate funding of National Institute of General Medical Sciences. An increase of $7 million is provided primarily for special grants. 122,338 63,649 122,338 63,649 Estimate provides for the following in 1966 compared with 1965: 2,027 research grants compared to 1,849, 2,071 fellowship awards compared to 1,837, and 682 graduate training grants compared to 690. Prior year funds were included in the appropriation for "General research and services." .651 NOA Exp. 4,787 3,553 4,969 4,075 6,406 6,405 1,437 2,330 National Institute of Child Health NOA and Human Development. _ 651 Exp. 34,000 19,260 42,696 29,340 53,524 42,062 10,828 Biologies standards. National Cancer Institute Reappropriation Special cancer research _ National Institute Health of 651 NOA NOA Exp. 143,179 264 136,853 _651 NOA Exp. Mental NOA 651 Exp. 176,312 159,916 Construction of community men- NOA tal health centers 651 Exp. National Heart Institute Reappropriation 651 NOA NOA Exp. 124,329 743 129,030 National Institute of Dental Re- NOA search 651 Exp. 19,166 20,337 A B c 138,970 1 143 118,990 149,968 132,487 10,000 6,000 4,000 188,273 157,295 208,969 182,028 35,000 3,000 50,000 15,000 125,171 | 131,612 684 109,210 118,890 20,190 17,115 22,177 19,204 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. 12,722 10,855 13,497 -10,000 -2,000 20,696 24,733 15,000 Increase expands research and testing of new vaccines. Estimate will provide major expansion of intramural research and extramural research and training grants. Increase reflects $10 million for research on cancer-leukemia shown as a separate appropriation in 1965. Reappropriations are planning funds for cancer research building. o o w The 1966 request for the National Cancer Institute includes $10 million to continue this program. Increase will allow 1,549 research grants in 1966 compared with 1,494 in 1965, and 1,979 training grants, up from 1,777 in 1965. Estimate funds full authorization for construction of these centers. 12,000 5,757 9,680 1,987 2,089 Increase will provide for continuation costs of grants started in prior years. Reappropriations are planning funds for gerontology building in Baltimore, Md. Increase provides research training for 500 individuals as contrasted to 460 in 1965 and 425 in 1964. 00 CO ANALYSIS OF NEW OBL1GATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 estimate 1966 estimate Increase or decrease Explanation of NOA requests DEPARTMENT <OF HEALTH , EDUCATION, AND WELFARE—Continued PUBLIC HEALTH SERVICE-Continued National Institutes of Health—Continued General and special funds—Continued National Institute of Arthritis and NOA Metabolic Diseases 651 Exp. 107,699 105,613 113,344 119,203 97,800 107,910 National Institute of Allergy and NOA Infectious Diseases 651 Exp. 67,117 65,637 70,100 61,125 National Institute of Neurological NOA Diseases and Blindness . . . 651 Exp. 84,443 80,496 Grants for construction of health NOA research facilities 651 Exp. 5,859 10,110 Increase is for 72 additional fellowships, and a slight expansion ol research and training grants. 74,987 67,656 4,887 6,531 Increase is for grants and awards and other small increases in all of the Institute's other activities. 88,089 76,610 92,153 83,208 4,064 6,598 Additional funds will finance increased costs of grants initiated in prior years. 56,000 37,828 58,000 47,000 56,000 47,000 -2,000 Decrease is due to lower authorization in 1966 for mental retardation research facilities. Construction of mental health- Exp. neurology research facility. _651 274 2,600 4,200 1,600 (Expenditures are payments of prior obligations.) Grants for cancer research facil- Exp. ities 651 695 1,746 1,000 -746 (Expenditures are payments of prior obligations.) NOA Exp. 972,245 909,601 1,059,819 874,000 1, 146,056 988,054 86,237 114,054 Scientific activities overseas NOA (special foreign currency pro- Exp. gram) 651 4,000 3,124 1,000 5,000 6,000 5,300 5,000 300 Supports overseas scientific research through use of excess foreign currencies. National health statistics 651 NOA 5,949 7,310 1,006 Increase is for first full year cost of hospital discharge survey and for other programs for the collection and analysis of health and vital statistics. Exp. 5,606 6,152 B 149 C 3 6,433 7,300 867 O % s CD a Total, National Institutes of Health. I Gi Increase is primarily for improving the organization, management, and dissemination of published information on drugs. 5,010 1,052 4,112 3,892 | B 66 3,799 4,960 1,161 Retired pay of commissioned offi- NOA cers (indefinite) 651 Exp. 6,487 6,150 7,155 6,932 7,850 7,300 695 368 Retired officers will increase from 528 to 587. The Public Health Service cost of medical care of dependents of commissioned officers is included in the appropriation. Salaries and expenses, Office of the NOA Surgeon General 651 6,215 6,648 434 Increase augments existing administrative direction of Public Health Service activities. Exp. 6,412 6,006 1 B 200 C 8 5,876 6.600 724 Emergency health activities.. _059 NOA Exp. 27,500 20,080 10,380 8,000 1,505 National Library of Medicine.651 NOA 4,074 Exp. 8,875 13.000 A Proposed health legislation... 651 NOA Exp. A A Proposed pollution control legis- NOA lation 651 Exp. A Public enterprise funds: Operation of commissaries, nar- Exp. cotic hospitals 651 -3 Intragovernmental funds: Bureau of State Services manage- Exp. ment fund 651 294 National Institutes of Health man- Exp. agement fund 651 3 -5,000 58,000 106,000 58,000 Proposed legislation for increased support of health facilities, services, and medical education. 60,000 12,000 60,000 12,000 Increased grants to State and local pollution control agencies, additional enforcement authority, and a program aimed at problems caused by combined storm and sanitary sewers. -1 -4 106,000 -69 61 -1 -22 -11 Working capital fund, narcotic Exp. hospitals 651 A B Proposed for separate transmittal, other than pay increase supplemental. c Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. -10 651 Exp. -91 w o o w I 371 -8 Service and supply fund ftJ Provides for inventory management and further increase in medical civil defense stockpile. ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account a nd functional code 1965 1966 Increase or decrease 3 Explanation of NOA requests td d DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued PUBLIC HEALTH SERVICE-Continued Intragovernmental funds—Continued General research support grants.. Exp. 651 3 4,534 (Advances and payments in 1965 and 1966 are expected to be equal.) 03 Exp. -817 800 Total, Public Health Service. NOA 1,721,969 Exp. 1,545,619 1,961,644 A 665 B 3,556 ^517 1,637,187 A653 Advances and reimbursements_651 332 o -468 2,170,175 I 369,793 A 166,000 1,876,590 | 308,762 A 70,012 SAINT ELIZABETHS HOSPITAL General and special funds: Salaries and expenses (indef- NOA inite) 651 7,852 Exp. 8,631 8,569 A 284 B 684 8,299 A,284 9,399 -138 8,500 -83 Supplemental in 1965 represents wage board increases. Decrease in 1966 is net result of an anticipated reduction in patient load partially offset by an increase in the amount of stipends paid to hospital interns and residents. Also included are funds to replace obsolete and wornout equipment. Buildings and facilities, _ 651 NOA Exp. 627 742 2,032 2.000 1,977 2,200 -55 200 Advances and reimbursements.651 Exp. -25 26 3 -23 Total, Saint Elizabeths Hos- NOA pital. 8,479 11,376 -193 Exp. 9,348 10,601 A 284 B 684 10.325 A 284 10,703 94 Provides for air conditioning Nichols Building, advance planning for a maximum security building, and miscellaneous improvements. Intragovernmental funds: SOCIAL SECURITY ADMINISTRATION Trust funds: Limitation on salaries and expenses. Exp. (317.900) (312.382) Limitation on construction.. Exp. (2,558) (326.410) 1 (358,092) ( B 5,216) (332,273) (355.966) (5,750) (2,601) (11.860) (7,245) (26,466) Estimate provides for 3% increase in overall workload for Social Security Administration, for improved means for determining disability, and for special recomputation project. (23,693) (6.110) Provides for construction of additional headquarters space and for 13 district offices. (4.644) International Social Security As- NOA sociation meeting 659 Exp. 3 O General and special funds: 92 6 86 -86 A Payments for military service NOA credits (proposed legislation) Exp. 659 A 1964 NOA financed XVth General Assembly of International Social Security Association held in Washington in September 1964. 60,000 60,000 60,000 60.000 Estimate is for the first of 50 annual installments to liquidate the Federal Government's obligation to the old-age, survivors, and disability system for the costs of past military service. -161 -170 (The chartering, supervision, and periodic examination of Federal credit unions is financed by fees for services performed.) a o Public enterprise funds: Operating fund, Bureau of Federal Exp. Credit Unions 659 117 9 Intragovernmental funds: Advances and reimbursements.653 Exp. -2 Total, Social Security Admin- NOA istration. Exp. 92 121 A B c 95 A60,000 60,000 -161 [ 59,744 A60.000 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal. civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 enacted 1965 estimate 1966 Increase or decrease Explanation of NOA requests () DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued a WELFARE ADMINISTRATION General and special funds: Grants to States for public assist- NOA ance 653 Exp. 2,884,600 53,200 407,900 2,544,106 13.242,100 A 407.900 290.094 332 300 -41 -73 6,256 742 6,235 915 162,000 151,000 34,170 45,000 Increases are for doubling mental retardation preventive efforts, expansion of the maternal and child health, crippled children and child welfare programs, and for research and training projects. 4,494 96 Provides for strengthening specialized consultative services to the States. 3.994 -201 10,000 8,000 -1,500 -1,500 Decrease results because projects initiated in some communities will be funded by the Office of Economic Opportunity under the community action program. 703 116 663 123 Increase will provide for the President's Council on Aging and necessary staffing of that function. Previously financed jointly with other departments and agencies. A 2,944,052 Assistance for repatriated U.S. NOA nationals 653 Exp. 467 396 Salaries and expenses, Bureau of NOA Family Services 653 Exp. 4,956 4,620 Grants for maternal and child NOA welfare 651 Exp. 99,443 89,356 Salaries and expenses, Children's NOA Bureau 651 Exp. 3,776 3,503 Juvenile delinquency and youth NOA offenses 659 Exp. 6,950 7,465 Salaries and expenses, Office of NOA Aging 659 Exp. 545 2,781,000 13,242,100 509 373 373 5,359 | B 155 5,320 127,830 106.000 4,295 1 B103 4,195 11,500 9,500 566 | 21 540 B Supplemental in 1965 is needed to complete 1964 requirements and for increased caseload and payments to recipients. Increase in 1966 expands medical assistance for the aged, aid to families with dependent children, and aid to the permanently and totally disabled. d Provides assistance to mentally ill and other indigent repatriates. to Increase provides for increased consultative effort to assure improvement in State administration and dependency-reducing efforts. S3 F Cooperative research or demon- NOA stration proj ects 653 Exp. 1,455 1,193 1,700 1,500 Research and training (special for- NOA eign currency program) 651 Exp. 334 400 Salaries and expenses, Office of NOA the Commissioner 653 Exp. 1,025 1,062 B 42 1,080 Assistance to refugees in the NOA United States 653 39,717 Reappropriation NOA Exp. 837 14,083 42,566 A A A Improvement and expansion of NOA public assistance 653 Exp. A 14 Total, Welfare Administra- NOA tion. 3,057,017 Exp. 3,094,844 B 1,200 1,200 800 400 Studies in maternal and child health and in social welfare will be undertaken in 8 foreign countries. 1,291 187 1,258 178 34,400 -5,600 33,570 -8,530 100,000 100,000 100,000 100,000 114,000 114,000 A Advances and reimbursements_653 Exp. A Provides for 46 comprehensive research and demonstration projects aimed at the reduction of dependency. A Grants for maternal and child NOA health services 651 Exp. c 300 300 34,800 B -2,436 c -153 7,789 42,100 Proposed legislation: I mprovement of medical care for NOA needy children under public Exp. assistance 653 Intragovernmental funds: 2,000 1,800 25,000 25,000 1 2,976,274 13,464,776 A 239,000 M07,900 B -2,115 c -153 2,715,115 A407.900 3,449,720 A 239,000 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. Increase will strengthen regional direction and coordination of welfare programs. Estimate reflects decline in requirement for financial assistance, education, training, and health services for Cuban refugees. Funds not needed in 1965 will be transferred to meet Pay Act costs in "Salaries and expenses, Food and Drug Administration," "Hospitals and medical care, Public Health Service," and part of such costs in "Salaries and expenses, Office of Education." Legislation will be proposed to broaden the medical vendor provisions of public assistance to include medical care to children in needy families similar to that available to the medically indigent aged under the Kerr-Mills program. 114,000 114,000 Legislation will be proposed to increase the Federal share of payments to public assistance recipients and to authorize payments for needy aged patients in tuberculosis and mental institutions. 25,000 25,000 Legislation will be proposed to expand the maternal and child health and the crippled children's program to provide project grants for comprehensive school health care, particularly in economically distressed areas. w i M d w o o 3 £ I ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted 1965 1966 Increase or Explanation of NOA requests DEPARTMENT <DF HEALTH, EDUCATION, AND WELFARE—Continued SPECIAL INSTITUTIONS o American Printing House for the Blind General and special funds: Education of the blind 704 NOA E*p. 775 865 909 44 775 865 909 44 Increase reflects larger school enrollment of blind children and increase in cost of producing educational materials for the blind. o Freedmen's Hospital 4,624 586 4.174 3,873 | B 165 3.894 4,514 620 1,722 1,770 1,926 1.918 2,277 2,250 351 Additional faculty and higher operating costs will accompany the estimated 11% increase in enrollment in 1966. 332 702 NOA Exp. 2,919 583 367 2.170 308 1,100 -1.070 Total, Gallaudet College_____ NOA Exp. 4,641 2,354 2,293 4,088 2,585 3,350 292 -738 3,880 Salaries and expenses 651 NOA Exp. Increase provides for employee terminal leave pay when hospital is transferred to Howard University by June 30, 1966, and improvement in training program and quality of patient care; partially offset by increased reimbursements from pay patients. Gallaudet College Salaries and expenses _ _ _ Construction 702 NOA Exp. -59 Provides for completion of facilities now under construction and planning of additions to existing structures to accommodate increasing enrollment. Howard University Salaries and expenses 702 NOA 8,819 Exp. 8.630 9,660 I M83 9.300 .702 NOA Exp. 6,245 3.458 Total, Howard University. _. NOA 15,064 Exp. 12.088 NOA 24,360 Exp. 19.390 10.837 I 1.380 ^13 1,810 2,920 7.120 1,110 3.300 13,902 2,249 17.957 1 4.680 3.820 11,470 1 M83 13.120 A Total, special institutions.— 1,139 170 A Construction. 10,982 f 170 M3 18,501 1 A 183 B 165 21.967 M70 22,020 1 26,730 t 1 Supplemental in 1965 will provide non-faculty pay increases similar to those granted Federal employees in recent legislation. Increase provides principally for a 4% larger enrollment in the liberal arts and graduate schools and for keeping faculty salaries comparable with those in similar institutions. Provides for construction of a woman's physical educational building and planning for additional structures to accommodate increasing enrollment. > 3,171 5d | o a 4.606 W M3 GENERAL ADMINISTRATION AND OTHER Salaries and expenses. Office of the NOA Secretary 659 Limitation payable from old-age and survivors insurance trust Exp. fund. Salaries and expenses, Office of NOA Audit 659 Limitation payable from oldage and survivors insurance Exp. trust fund. A B 2,933 (467) 2.723 3,070 1 B 211 (479) 3.220 t 3,811 (483) 3.762 Additional staff is provided to strengthen economic planning, science and other program coordination, grants management, and management appraisal functions. It is also planned to reorganize the Secre(4) tary's Office to permit dealing with increasingly complex problems 542 in a more effective manner. 3,180 3,180 (493) 3.125 (493) 3.125 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. 530 A new appropriation to finance a reorganized central department audit staff. •"fc to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted 1965 e itimate 1966 estimate Increase or decrease Explanation of NOA requests DEPARTMENT <DF HEALTH, EDUCATION, AND WELFARE—Continued GENERAL ADMINISTRATION AND OTHER—Continued General and special funds—Continued Office of Field Administration.659 NOA Limitation payable from old-age and survivors insurance trust fund and Bureau of Federal Exp. Credit Unions operating fund. Surplus property utilization. _ .659 NOA 3,732 3,784 1 B (1,337) 3,792 950 1 (1.288) 1 1,886 155 ( B 52) i 3.865 970 1 31 1 B (1.326) 1.874 -2,053 Increase to strengthen regional office management and to meet workload increases are more than offset by transfer of the audit activity to "Salaries and expenses, Office of Audit." (-14) -1.991 1,053 52 Staff to meet rising workload in allocation of surplus property will be financed by 1966 increases. Exp. 973 979 1,045 66 Salaries and expenses, Office of the NOA General Counsel 659 Limitation payable from old-age and survivors insurance trust Exp. fund and Food and Drug Administration revolving fund. 975 1,167 1 B 101 j 1,435 167 (907) 1,225 (879) 1,430 (-28) 205 Educational television facilities. _ NOA 704 Exp. Intragovernmental funds: Working capital fund 659 Exp. (900) 970 Provides staff for contract negotiation and appeals, food and drug enforcement, and regional and field litigation. CO Oi O5 13,000 8,500 11,826 1,962 12,000 -1,174 3,500 -64 -264 -98 166 6,500 Provides for maximum authorization for grants to public and nonprofit private educational television agencies for construction of transmission apparatus. Advances and reimbursements.659 Exp. -17 Total, general administration NOA and other. Exp. 15,090 Total. Department of Health, NOA Education, and Welfare. 5,697,070 Exp. 5,497.732 10.338 21,991 »498 17.525 6,684,538 A 409,032 B 4,478 C 364 5.356.084 ^409,007 B4.306 C364 23,191 702 23.138 5,613 7,789,746 12,681,334 1,990,000 A 6.800,192 12.006,628 A976.025 »172 w DEPARTMENT OF THE INTERIOR PUBLIC LAND MANAGEMENT 3 Bureau of Land Management § General and special funds: Management of lands and re- NOA sources 401 46,617 Exp. 45,573 Construction. .401 NOA Exp. 46,346 3,200 B 75O 43.171 A 2.950 A 300 1,100 392 800 47,630 44.362 ^250 Oregon and California grant lands NOA 9,648 10,125 8,545 (receipt limitation) (indefinite) Exp. 7.598 8.000 8,000 401 A B Proposed for separate transmittal, other than pay increase supplemental. c Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal. military pay increase supplemental. Supplemental in 1965 is for fire suppression. Estimate in 1966 makes provision for accomplishing more adequately the maintenance of buildings, sanitation and protection facilities, and roads on the public domain. Increases are also provided for works to halt deterioration of public land, and for cooperative resources management projects with States and local agencies. Provides for continuing construction of facilities to house fire control operations in Alaska; for construction of sanitation and protection facilities on public domain lands in areas of heavy public use; and for several small offices and warehouses to house field operations. A sum equal to 25% of revenues from these lands is available for road construction and maintenance, reforestation, protection, and the development and maintenance of recreational facilities ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code Increase or 1966 1965 Explanation of NOA requests (-) DEPARTMENT OF THE INTERIOR—Continued PUBLIC LAND MANAGEMENT-Con. Bureau of Land Management—Continued General and special funds—Continued Public lands development roads and trails: Wl Contract authorization: Current NOA NOA Permanent Liquidation of contract authoriExp. zation. 3 Q 2,000 142 miles of road construction is programed for 1966. 1 (2,000) 2,050 2,000 (2.000) 2,000 1,248 1,240 1,397 1,250 1,455 1,250 58 A sum usually equal to 33% of grazing revenues is used for range im- 401 NOA 401 NOA Exp. 230 1,694 1,314 230 1,963 2,193 227 2,035 2,262 - 3 Revenues from mineral leasing, sale of timber, grazing leases and permits, and other public domain revenue-producing operations are used 72 in resource programs, or are paid to the States and counties in various 69 Special fund 402 NOA Exp. 15,218 15,228 21,963 21,963 19,060 19,060 - 2 ,903 - 2 ,903 General fund Special fund 403 NOA _403 NOA Exp. 46,548 46,544 53,168 53,178 10 7 1,148 1.155 Total, Bureau of Land Man- NOA agement. 125,508 135,730 - 5 ,367 Exp. 118,599 Range improvements (receipt limi- NOA tation) (indefinite) 401 Exp. Permanent appropriations: General fund Special fund 4,000 (760) 710 6 3 52,020 52,023 137,147 I A3,200 B 750 131,450 A 2,950 f -50 provements. Increase in revenue is expected. 130,912 1 - 3 ,238 A 25O [ proportions, as specified by law. Permanent appropriation of receipts from land and water resources are devoted, in general, to improvements of roads, recreational facilities, and grazing lands. Those from forest resources may be used for the costs of timber sales, or for State or county roads, schools, etc. Minerals revenues are largely paid to States for educational and other uses. 2 GO Bureau of Indian Affairs Education and welfare services: Appropriation 704 Contract authorization (permanent, indefinite) 704 Liquidation of contract authorization. Resources management 401 401 Construction. Road construction: 401 Contract authorization: Current Permanent Liquidation of contract authorization. educational Payment to Seneca Nation 88,445 NOA 990 94,878 1,497 1,100 105,795 1,100 Exp. (772) 89,020 (990) 93.741 (1,100) 104,589 NOA 38,111 42,956 Exp. 37.630 40,390 A 500 B 724 40,034 MOO NOA Exp. 59,224 45.634 52,009 47,206 The increase is primarily to support an additional 4,515 students in Federal elementary and secondary schools and 920 more persons in the vocational training program. The 1965 supplemental is for nrenghting. The increase in 1966 is primarily for maintenance of new schools and for economic development on and near reservations. w 1 40,670 A 100 68,975 The program includes construction of new schools, including 3 Navajo boarding schools, additions to existing schools, and construction of utility and irrigation systems. 54,721 O NOA NOA 18,000 Exp. NOA 4,264 Exp. 4,323 grants 704 NOA Exp. 132 409 NOA Exp. 132 (17,000) 18,305 4,331 j »189 4.500 88 88 The 1966 program includes 381 miles of grading and draining and 549 miles of surfacing. 18,000 (16.900) 16,900 4,518 Administration is continued at the current level. 18 44 44 12.129 12.129 a 3 4,520 A Proposed for separate transmittal. other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. B 9,420 B 18,000 (15.000) 14.970 General administrative expenses 409 Menominee NOA The last of 5 decreasing grants for school costs to lessen the impact of the termination of Federal services to the Menominee tribe. -12,129 -12,129 The payment made in 1965 is for a one-time program of assistance to improve conditions of the members of the Seneca Nation. 3 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousand* of dollars)—Continued 1964 enacted Account and functional code 1965 Increase or decrease 1966 Explanation of NOA requests DEPARTMENT OF THE INTERIOR—Continued PUBLIC LAND MANAGEMENT—Con. Bureau of Indian Affairs—Continued General and special funds—Continued Miscellaneous accounts 409 Exp. Claims and treaty obligations (per- NOA manent, indefinite) _ _ _409 Exp. Other miscellaneous appropria- NOA tions (permanent, indefinite, Exp. special funds) 401 173 190 6,712 6,578 161 171 6,529 6,450 161 161 6,645 6,536 10 10 2,000 5.094 -2 10 114 900 2,109 107 642 1,403 218,057 230,525 A 500 B 2,410 226,499 A400 409 NOA Exp. Public enterprise funds: Revolving fund for loans 401 NOA Exp. Liquidation of Hoonah Housing Exp. project revolving funds 409 Intragovernmental funds: Advances and reimbursements.409 Exp. Total, Bureau Affairs. of Indian NOA Exp. -142 142 204,216 520 3 -10 Payments are made to various tribes as authorized by special laws. Payments are authorized to meet treaty obligations with certain Indian tribes. o 8 116 Revenue from irrigation and electric power projects is used to operate and maintain the projects. 86 -104 Revenue from mineral deposits is used for acquisition of lands and for loans to Indians in Oklahoma. -906 Legislation will be recommended to increase the appropriation authorization. -1,589 -104 (Balances are being used for liquidation.) -1,403 248,206 14,771 228,672 A 100 1.873 P National Park Service General and special funds: Management and protection _ _ 405 NOA 27,302 Exp. 27,232 Maintenance and rehabilitation of NOA physical facilities 405 Exp. 21,941 Construction 32,697 42,420 405 NOA Exp. Contract authorization: 405 Current NOA Permanent NOA Liquidation of contract authori- Exp. zation. 21.973 29,230 A 265 B 632 29.000 ^250 33,215 3,088 33,000 3,765 23,100 A 55O 22.500 A525 24,660 1,010 24.300 A 25 1.300 42,407 42.217 26,327 32,558 -16,080 -9,659 34,000 41,000 (29.000) 33.703 (29.000) 35,021 34,000 (34,000) 34,000 94 2.116 2,500 200 Other miscellaneous permanent NOA appropriations (permanent, in- Exp. definite, special funds) 405 150 244 136 156 122 122 -14 -34 Intragovernmental funds: Advances and reimbursements_405 Exp. 142 31 131,198 120,840 A 815 B 729 131,225 126,480 127,830 Exp. A 775 MO Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Total, National Park Service NOA A B 125,227 3 In 1966, the program is limited to construction of facilities and acquisition of water rights. Land acquisition, funded in this account in 1965 ($13.2 million), will be financed in 1966 from the account "Land and water conservation," Bureau of Outdoor Recreation. Work on 7 parkways will continue and road and trail construction will include work on 114 miles of major roads. Road construction in (5,000) newly authorized areas will be initiated. -1,021 2,516 2,137 Supplemental in 1965 is for wage board pay increases. The 1966 increase will cover 10 new areas and permit more adequate maintenance of roads and facilities throughout the Park Service. i- 2,325 B 97 2,300 General administrative expenses NOA 405 Exp. Supplemental in 1965 is for fire suppression. Increase in 1966 is for operation of 11 new park areas and newly constructed facilities to serve the increasing visitation to the 218 areas. U.S. Park Police staff will be strengthened and certain supporting services augmented. Increase provides for strengthening administrative services for the expanding park program. 3 3 Certain revenues from park operations are used for the purposes authorized by law. -31 -11,902 -5,480 to 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 estimate 1966 Increase or decrease Explanation of NOA requests DEPARTMENT OF THE INTERIOR—Continued PUBLIC LAND MANAGEMENT—Con. Bureau of Outdoor Recreation General and special funds: Salaries and expenses 405 NOA 1,900 Exp. 1.912 A Land and water conservation (spe- NOA cialfund) 405 Exp. 2,668 B 80 2,738 3,398 650 3,300 562 16,000 10,000 125,000 50,000 A 6,000 109,000 A Intragovernmental funds: Advances and reimbursements.405 Exp. -12 12 Total, Bureau of Outdoor NOA Recreation. 1,900 Exp. 1,900 2,668 16,000 B 80 2,750 A 10,000 General and special funds: Administration of territories. .910 NOA 13,000 Exp. 12,903 A 46,000 Increase accelerates preparation of nationwide outdoor recreation plan and strengthens effort for coordination of Federal recreation programs. Initial appropriation of receipts from the Land and water conservation fund to be available for Federal acquisition of recreation lands and for assistance to States for planning, acquisition, and development of such areas. GO o -12 128,398 109,650 CO a a 53,300 6,000 46,550 14,579 -10,766 16,130 6,473 A Office of Territories 25,300 1 B 45 9,657 3» Decrease in 1966 results primarily from smaller requirements for the Guam rehabilitation program. Trust Territory of the Pacific NOA Islands 910 Exp. 17,500 12,400 15,000 20,300 A Claims settlements, inhabitants NOA of Rongelap Atoll, Trust Terri- Exp. tory of the Pacific Islands__910 950 950 A 7,042 7,042 8,313 8,313 -103 280 NOA 35,042 Exp. 40,143 51,113 | A 950 B 45 30,650 ^950 Alaska Railroad revolving fund NOA 506 Exp. 20,000 1,809 Total, public land manage- NOA ment. 525,734 Exp. 494,497 Internal revenue collections for NOA Virgin Islands (permanent, in- Exp. definite, special fund) 910 Public enterprise funds: Loans to private trading enter- Exp. prises, Trust Territory of the Pacific Islands 910 Total, Office of Territories.. . 17,344 18,500 7,200 7,200 -156 6,100 Program will be continued at about the current level with some adjustments between operation and construction. -950 -950 The 1965 supplemental is for the settlement of claims by the residents of Rongelap Atoll for radiation exposure, as authorized by recent legislation. -1,113 -1,113 Payments are made to the Virgin Islands from taxes collected on island products sold in the United States. -280 (This fund was liquidated in 1965 and the assets contributed to the Trust Territory.) 39,123 -12,985 41,830 10,230 3,000 7,448 3,000 -9,552 675,297 97,166 O O The Alaska Railroad A B 17,000 552,652 21,465 B 4,014 539,575 A 15,075 A Estimate completes thefinancingof Alaska earthquake damage restoration work. l 3 588,642 1 40,382 A 6,390 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. to to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 estimate 1964 enacted Account and functional code Increase or decrease 1966 33 Explanation of NOA requests DEPARTMENT OF THE INTERIOR—Continued MINERAL RESOURCES d Geological Survey General and special funds: Surveys, investigations and re- NOA search 409 Exp. 63,700 60,921 67,255 1 *2,079 63,957 I 72,826 3,492 70,089 6,132 -172 Lead and zinc stabilization pro- Exp. gram 403 652 602 430 Payments from proceeds, sale of NOA water, Mineral Leasing Act of Exp. 1920, sec. 40(d) (permanent, indefinite, special fund) 401 1 1 3 1 -3 I ntragovern mental funds: Advances and reimbursements.409 Exp. 63,701 Total, Geological Survey NOA Exp. 1,040 -496 61,077 67,256 1 2,079 65,602 f B -1,040 72,827 3,492 70.519 4,917 Estimate provides increases for mineral evaluation of wilderness areas; acceleration of studies of the earth's crust and upper mantle; development and coordination of national water resources data network; increased water resources research; and major new research effort in earthquake seismology. Engineering design for the expansion of Geological Survey research center at Denver will start in 1966. o w (Program provides stabilization payments to small domestic producers of lead and zinc. Funds appropriated in 1963 will be used to finance program in 1966.) Receipts are appropriated to maintain and develop water wells on the public domain. CD OS Bureau of Mines General and special funds: Conservation and development of NOA mineral resources 403 Exp. 29,369 28,658 30,093 B 798 30,614 31,625 734 31.514 900 9,507 -29 9,500 100 652 NOA 8,661 Exp. 8,558 9,299 B 237 9,400 338 393 General administrative expenses NOA 403 Exp. 1,460 1,529 60 1,382 1,410 B 59 1,450 1.500 50 Drainage of anthracite mines_403 Exp. 68 1,660 1,690 30 6,000 9,794 14,000 16,483 16,780 16.657 2,780 174 Health and safety Construction 403 Exp. -393 Increase is for research to develop economical uses of metal in junk automobiles; mining research; marine mineral mining; explosives research; automation of selected statistical surveys; and evaluation of mineral deposits in wilderness areas. Provides for research and educational effort to reduce health and safety hazards in mining operations. w (Construction work for which these funds were originally appropriated has been completed.) Increase is to provide for conversion of certain administrative work to automatic data processing. (Balance of a 1956 appropriation will be spent in Pennsylvania.) O Public enterprise fund: Helium fund (authorization to NOA spend debt receipts) 403 Exp. Increase in borrowing from Treasury is for the purchase of helium; it is to be repaid later as helium is sold. Limit on level of annual purchases would be increased from $47.5 million to $60 million. Intragovernmental funds: Advances and reimbursements-403 Exp. -150 NOA 45,490 Exp. 48,648 54,802 1 1,094 60,000 403 NOA Exp. 5,075 2,627 6,836 5,100 Total, Bureau of Mines B 59,441 3,545 60,861 861 6,945 5.686 109 586 o a Office of Coal Research General and special funds: Salaries and expenses B Proposed for separate transmittal, civilian pay increase supplemental. Increase will provide expansion of research by contract to find new markets and to develop new methods of mining, preparing and utilizing coal. to to S8 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 Account and functional code 1966 Inc Explanation of NOA requests DEPARTMENT OF THE INTERIOR—Continued 3 d MINERAL RESOURCES—Continued a Office of Minerals Exploration General and special funds—Continued Salaries and expenses 403 NOA Exp. 850 538 -850 -448 850 448 Administration of this program is transferred to the Geological Survey 3 Office of Oil and Gas Salaries and expenses 403 NOA 616 660 BAA Total, mineral resources Exp. 613 NOA 115,732 Exp. 113,503 | 704 130,404 J B 3,217 131,854 Estimate continues program at current level. 7M t1 704 139,917 6,296 137,770 5,916 CO O5 a FISH AND WILDLIFE SERVICE Office of the Commissioner of Fish and Wildlife Salaries and expenses 404 NOA 386 425 | 444 BIO Exp. 380 440 440 Estimate continues program at current level. Bureau of Commercial Fisheries 16,927 20,939 B 288 20,000 20,000 300 137 300 250 300 300 50 404 NOA 5,100 1,405 -3,533 Exp. 6,649 4,788 M50 6,464 A 130 4,214 1 -2,360 A20 Construction of fishing vessels.404 NOA Exp. 750 104 2,500 640 5,000 3,500 2,500 2,860 Subsidies cover the difference in construction costs between U.S. and foreign shipyards on 25 vessels in 1965 and 50 in 1966. 2,000 1,250 2,000 1,250 New program reimburses States up to 75% of cost of approved commercial fishery research and development projects. 674 -30 Estimate continues program at current level less nonrecurring cost of accounting equipment purchased in 1965. 667 -14 2,454 Management and investigations NOA of resources 404 Exp. 17,823 Management and investigations NOA of resources (special foreign cur- Exp. rency program) 404 Construction Federal aid for commercial fish- NOA eries research and development. Exp. 404 21,218 -9 expen- NOA 404 Exp. 653 656 667 37 681 Administration of Pribilof Islands NOA (special fund) 404 Exp. 2,468 2,442 2,389 2,315 2,308 -7 Promote and develop fishery prod- NOA ucts and research pertaining to Exp. American fisheries (permanent, indefinite) 404 5,373 5,273 5,298 4,992 5,200 4,960 -98 -32 General ses A B administrative B Increases in 1966 primarily for full-year operating costs of new facilities are more than offset by nonrecurring cost of fishery resource disaster aid in Great Lakes region. Biological and technological research and market development efforts are carried on abroad using excess foreign currencies. Supplemental in 1965 is for completion of a fish passage facility (Selway Falls, Idaho) damaged by flood waters. Amount for 1966 includes completion of construction of an exploratory vessel for use in Gulf of Mexico and continuation of program providing production and migration aids for salmon in Columbia River Basin. Part of the proceeds from sales, mostly of fur sealskins, is used in administration of the Pribilof Islands. B12 I 3 A sum equal to 30% of customs duties onfisheryproducts is appropriated for biological research, technological development, and general administrative services. Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. 8 CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 1966 Increase or Explanation of NOA requests (-) DEPARTMENT OF THE INTERIOR—Continued 3 FISH AND WILDLIFE SERVICE-Con. Bureau of Commercial Fisheries—Con. General and special funds—Continued Payment to Alaska from Pribilof NOA Islands fund (permanent, indefi- Exp. nite, special fund) 404 589 589 964 964 500 500 -464 -464 Alaska is paid 70% of net proceeds from sales of wildlife products of the Pribilof Islands. Public enterprise funds: Federal ship mortgage insurance Exp. fund, fishing vessels 404 -30 -45 -50 -5 (Premiums and fees are reserved for possible losses. Contingent liability will be $9 million in 1966.) -506 709 Fisheries loan fund Limitation on expenses. 404 Exp. administrative Total, Bureau of Commercial Fisheries. <270) (302) 1 -750 D(309) B,7) NOA 33,056 Exp. 32.188 37,898 1 A 150 B 337 36,970 A 130 366 38,751 37,608 A 20 j 528 (Program of $1.8 million is financed by receipts and fund capital.) I CO Bureau of Sport Fisheries and Wildlife General and special funds: Management and investigations NOA of resources 404 30,481 34,838 ] M76 B 294 J 34,935 -373 Exp. 29,919 34,294 1 A 176 | 34,000 -470 .404 NOA Exp. 5,294 6,150 2,992 2,800 -5,066 -7,250 General administrative expenses NOA 404 Exp. 1,359 1,384 1 1,458 1,283 59 f 1,459 1,400 -59 10,000 8,000 7,500 -500 4,560 8,414 5,000 12,000 11,500 -500 Federal aid in fish restoration and NOA management (receipt limita- Exp. tion, permanent, indefinite) _404 6,358 5,906 7,342 6,000 6,500 6,000 -842 Matching assistance to States is provided by appropriations equal to 10 % excise tax on sport fishing equipment. Federal aid in wildlife restoration NOA (permanent, indefinite, special Exp. fund) 404 16,238 16,019 17,455 16,000 16,500 16,000 -955 Matching assistance to States is provided by appropriations equal to 11 % excise tax on manufacture of firearms and cartridges. 3 5 5 5 Construction. Migratory bird conservation ac- NOA count 404 Receipt limitation (permanent, NOA indefinite). Exp. Payments to counties, national NOA grasslands (permanent, indefi- Exp. nite, special fund) 404 A B D 5 8,058 10,050 B Program includes additional construction at 2 pesticides research facilities and a waterfowl management research center; development at 20 wildlife refuges; repair of storm damage at 5 refuges; and rehabilitation costs at 1 fish hatchery. w 15 Small increase in estimate initiates automatic data processing effort. 5,000 5 Program supplemental in 1965 is for wage board increases. Increases in 1966 for operation of fish hatcheries, management of new refuges, and pesticides registration are more than offset by reduction in predatory animal control program, closure of 9 fish hatcheries, and reducing management costs at marginal refuges. Estimate of $7.5 million to be advanced from general revenues (to be repaid later) is for acquisition of migratory waterfowl lands. Estimated receipts from sale of Federal duck-hunting stamps are used for the acquisition of migratory waterfowl lands. o o The sum of 25 % of revenue from submarginal lands goes to counties in which such lands are located, for schools and roads. Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. To carry out authorizing legislation to be proposed. to O5 to to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY 1964 code 1965 AND EXPENDITURES BY 1966 AGENCY (in thousands of dollars)—Continued Increase or Explanation of NOA requests (-) DEPARTMENT OF THE INTERIOR—Continued w d o FISH AND WILDLIFE SERVICE—Con. Bureau of Sport Fisheries and WildlifeContinued General and special funds—Continued Permanent appropriations from NOA national wildlife refuge receipts Exp. (indefinite, special funds) ___404 Total, Bureau of Sport Fish- NOA eries and Wildlife. Exp. Total, Fish and Wildlife Serv- NOA ice. Exp. 2,505 2,532 76,797 70,229 110,239 102,797 1,665 1,476 1,776 1,569 HI 93 83,747 M76 B 353 81,284 | A I76 76,666 -7,610 73,274 -8,186 122,070 | A 326 B 709 118,694 A 306 115,861 -7,244 111,322 A 20 11,398 11,800 11,520 11,520 Of net proceeds from sales of refuge products, 75% 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. CO OS 1 -7,658 WATER AND POWER DEVELOPMENT Bureau of Reclamation General investigations 401 NOA Exp. 10,286 10,151 s 122 -280 Program includes engineering and economic investigations and research activities. and rehabilitation 401 NOA Exp. 185,099 171,392 185,605 187,817 183,450 184,329 -2,155 -3,488 Construction continues on 28 projects, including the Pacific NorthwestSouthwest power intertie, and on 15 Missouri River Basin project units estimated to cost $4.4 billion; construction will start on 4 new projects estimated to cost $99.7 million. Rehabilitation and betterment will be carried out on 7 projects. Facilities for 74,800 acres of irrigated land and 41,100 acre-feet of municipal and industrial water supply will be completed. Operation and maintenance. __401 NOA Exp. 37,963 34,392 39,842 39,000 40,915 40,500 1,073 1,500 Provides for operation and maintenance of 42 projects and Missouri River Basin units for irrigation, power, water use, and other activities. Increase provides for operation of additional facilities and 1 new project. General administrative expenses 401 NOA Exp. 9,999 9,847 10,775 10,700 10,938 10,900 163 200 Provides overall administration and the technical direction of Bureau programs. .401 NOA 12,117 11,946 12,307 13,000 14,995 18,000 2,688 5,000 Finances projects started in prior years and provides for 4 new irrigation project loans costing $11.4 million; 3 loan projects will be completed. NOA Exp. 71 1,000 1,690 1,000 -1,000 -690 This account insures continuing operation of Federal water supply systems and powerplants in emergency situations. Construction of recreational and fish and wildlife facilities, Upper Colorado River storage project 401 NOA Exp. 3,952 2,742 4,500 5,950 3,500 3,728 -1,000 -2,222 Development of public recreational facilities will be completed at 3 reservoirs. Construction of fish and wildlife facilities will continue at 6 sites. Other miscellaneous appropriations (permanent, special funds) 401 NOA Exp. 4,837 4,614 4,452 4,782 Construction Loan program. Exp. Emergency fund 401 3,712 3,710 -740 -1,072 Includes appropriations of Colorado River Dam fund revenues for payment of interest to Treasury and other specific items. -1,739 -1,687 -896 Continuing fund for emergency Exp. expenses, Fort Peck project, Montana 401 A Proposed for separate transmittal, other than pay increase supplemental. B Proposed for separate transmittal, civilian pay increase supplemental. 52 (Receipts from power sales are used for operation and maintenance of power generation and transmission facilities and for continued operation in emergency situations. Receipts exceed expenditures.) Public enterprise funds: 9 o 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 1966 Account and functional code Increase or decreas Explanation of NOA requests DEPARTMENT OF THE INTERIOR—Continued W WATER AND POWER DEVELOPMENTW Continued d o o Bureau of Reclamation—Continued Upper Colorado River Basin fund NOA 401 Exp. 94,006 57,792 45,365 -12,427 95,123 62,000 47,000 -15,000 Total, Bureau of Reclamation NOA Exp. 358,258 339,383 327,672 335,000 314,395 319,000 -13,277 -16,000 401 NOA Exp. 36,174 30,840 87,420 36,750 98,450 71,850 11,030 35,100 Increase is mainly for construction of 500 kv transmission lines as the main backbone of the Pacific Northwest power grid, and for continued construction of the Pacific Northwest-Southwest power intertie. Operation and maintenance. _ .401 NOA 14,084 14,980 j A 280 14,980 A 270 16,015 755 Increase will provide for the operation and maintenance of transmission facilities added to the power system. Construction continues on 3 storage units and the transmission facilities and on 7 participating projects. One $3.7 million project will be started in 1966. W 3 GO o Bonneville Power Administration General and special funds: Construction OS Exp. 13,918 Continuing fund for emergency NOA expenses, Bonneville project, Exp. Oregon (permanent, indefinite, special fund) 401 235 234 16,015 A 10 i ra This account is used to insure continued operation of the power system in emergencies. Public enterprise funds: A Bonneville Power revolving fund. _ NOA 401 Exp. Total, Bonneville Power Ad- NOA ministration. Exp. A 50,493 44,991 102,400 A 280 51,730 A 270 -80,030 -80,030 -80,030 -80,030 Proposed legislation permits receipts from sale of power to be used, thus reducing need for NOA and decreasing net expenditures. 114,465 j-68,245 -80,030 S7t865 1-44,155 A -80,020 A Southeastern Power Administration w General and special funds: Operation and maintenance..-401 NOA Exp. 1,000 758 Public enterprise funds: Southeastern Power revolving fund NOA 401 Exp. Total, Southeastern Administration. Power NOA Exp. A 1,000 758 1,000 850 1 50 A -1,000 -25,200 -1,000 -25,200 999 800 Provides for continuation of power marketing program. Proposed legislation permits receipts from sale of power to be used, thus reducing need for NOA and decreasing net expenditures. o a 1,000 | -999 -1,000 850 1-25,150 800 A -25,200 999 A Southwestern Power Administration General and special funds: 3,000 4,378 2,610 2,828 4,500 5,169 1,890 2,341 Operation and maintenance. __401 NOA Exp. 1,500 1,502 1,680 1,672 1,800 1,831 120 159 Continuing fund special fund) 4,500 4,423 4,500 4,500 4,000 4,000 -500 -500 Construction A 401 NOA Exp. (indefinite, NOA 401 Exp. Proposed for separate transmittal, other than pay increase supplemental. Initial funding for approximately 550 miles of transmission lines, additional substation capacity and related facilities. Increase is required to maintain additional power facilities. Provides for energy purchases and rental of transmission lines. 3 O i ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 1966 Increase or decrease Explanation of NOA requests DEPARTMENT OF THE INTERIOR—Continued WATER AND POWER DEVELOPMENT— Continued w d a w Southwestern Power Administration—Con. Public enterprise funds: Southwestern Power revolving NOA fund 401 Exp. Total, Southwestern Power Administration. A-10,300 A-18,369 NOA 9,000 Exp. 10,303 -10,300 -18,369 Proposed legislation permits receipts from sale of power to be used, thus reducing need for NOA and decreasing net expenditures. 10,300 1 -8,790 A-10,300 11,000 1-16,369 9,000 8,790 A-18,369 Office of Saline Water General and special funds: Salaries and expenses 401 Operation and maintenance. _ _401 NOA 10,000 Exp. 7,017 NOA Exp. 1,850 1,392 10,000 1 3,900 9,381 A 1,000 A 2,250 2.250 26,515 12,879 | 2,900 A 2,485 2,485 5,398 Provides for an expanded effort to advance desalting technology applicable to a wide range of water supply problems. The development of more economic distillation processes will receive major emphasis. Supplemental in 1965 permits immediate expansion of research and development activities. 235 235 Provides for operation of 4 demonstration plants and 1 test site facility during 1966. 12,615 3 o Construction, operation, and Exp. maintenance 401 1,085 Total, Office of Saline Water. NOA 11,850 Exp. 9,494 12,250 1 3,900 f A 11,450 1,000 430,601 404,929 1,917 29,000 12,850 452,111 M,180 407,980 A 1,270 17,100 1 2,900 A A Total, water and power de- NOA velopment. Exp. 1,736 -181 (Replacement of a demonstration plant transferred to Cuba in 1964 will be financed by a Navy reimbursement and balances of prior appropriations.) 7,550 1 f 469,160 1-78,461 -91,330 435,815 1 -94,124 A -120,689 A } SECRETARIAL OFFICES Office of the Solicitor Salaries and expenses 409 NOA Exp. 3,999 3,902 4,223 1 B 170 4,323 4,479 86 4,450 127 4,479 114 4,501 231 10 -1 -11 I Increase will provide legal services for new departmental programs. o o Office of the Secretary Salaries and expenses 409 NOA 3,855 Exp. 3,815 Exp. 28 Exp. -12 NOA 3,855 4,110 1 B 254 4,479 114 Exp. 3,831 4,280 4,500 220 Intragovernmental funds: Working capital fund_ __ 409 Advances and reimbursements.409 Total, Office of the Secretary.. A B 4,110 1 B 254 4,270 I I Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Department direction and management services will be strengthened. w > o o ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 Increase or 1966 Explanation of NOA requests (-) DEPARTMENT OF THE INTERIOR—Continued SECRETARIAL OFFICES—Continued Office of Water Resources Research General and special funds: Salaries and expenses 1,465 1 2,825 1,355 A 2,745 401 NOA A Exp. Total, secretarial offices NOA Exp. VIRGIN ISLANDS CORPORATION Public enterprise funds: Operating fund__ ^10 Exp. 7,732 326 (186) Limitation on administrative expenses. A B 7,854 Total, Department of the NOA Interior. 1,190,160 Exp. 1,123,784 9,798 A 2,825 A 9,958 2,745 5,890 1,600 5,620 1 A 80 1,600 14,848 1,800 14.570 1 1.947 A 80 (156) 1,267,035 11,415,083 1 19,557 A 28,796 A -91,330 B 8,364 j 1,198,080 1,287,646 1-51.445 A 19,396 A-114,199 B474 B7,890 1 n 1 (Corporation will liquidate its programs in 1966.) (-56) (Administrative expenses are needed only for liquidation purposes.) (100) Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal. civilian pay increase supplemental. 2,092 § I 1 1 -2,091 The 1965 supplemental provides funds sufficient to grant each of 37 States $75 thousand to establish water research institutes. The 1966 amount provides for grants of $87.5 thousand for up to 51 institutes, and increased matching grants for water research. CD O5 O5 DEPARTMENT O F JUSTICE LEGAL ACTIVITIES AND GENERAL ADMINISTRATION General and special funds: Salaries and expenses, general ad- NOA ministration 908 Exp. Salaries and expenses, general legal NOA activities 908 Exp. 4,850 B 272 5.080 4,660 4,601 18,573 18,309 20,440 B 703 20,890 i i 5,525 403 5,300 220 21,565 422 21,225 335 Increase will provide for the establishment of an Office of Criminal Justice under the Deputy Attorney General, and appointment of parole examiners for the Board of Parole. Increase is for full-year cost of staff added in 1965 to handle increasing civil rights caseload, and promotion program for tax division attorneys. Trust fund: (369) (690) (690) Salaries and expenses, Antitrust NOA Division 508 Exp. 6,599 6,854 B 218 6,980 i 7,130 58 7,000 20 Salaries and expenses, U.S. attor- NOA neys and marshals. 908 Exp. 29,230 i 32,475 590 29,016 30,285 l,600 31,720 32,000 280 Increase provides for additional assistant U.S. attorneys to improve collections of fines, forfeitures, and judgments, and for reclassification of senior deputy marshals. Fees and expenses of witnesses.908 NOA Exp. 2,600 2,445 2,800 2,700 2,800 2,800 100 Fees and expenses are paid to witnesses who appear on behalf of the Government. 65,229 2,793 67,370 69,495 1,473 68,325 955 Limitation on general administratrative expenses, alien property activities. General and special funds: I ntragovern mental funds: 6,506 Advances and reimbursements_908 Exp. 16 Total, legal activities and NOA general administration. Exp. 61,662 A B 60,893 B B • Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. (Estimate contemplates that most of the work of the Office of Alien Property will be completed, and the Office closed, by June 30, 1966.) Increase will finance mandatory additional salary costs. o o a ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 Account and functional code Increase or 1966 i Explanation of NOA requests (-) DEPARTMENT OF JUSTICE—Continued FEDERAL BUREAU OF INVESTIGATION General and special funds: Salaries and expenses 908 NOA Exp. 146,842 143,024 150,445 A 5,030 B 5,605 156,980 A 4,600 165,365 4,285 163,7101 A 430J 2,560 Supplemental in 1965 is for increased caseload under the Civil Rights Act of 1964, personnel security investigations, and extension of name check procedures. Increase in 1966 provides for additional costs under the Civil Rights Act, expansion of the internal security program, and for continuation of promotion plan for special agents. 908 NOA Exp. 68,997 67,100 Refund of bond forfeitures by refu- NOA gees (permanent, indefinite) 908 Exp. 1 1 Total, Immigration and Nat- NOA uralization Service. Exp. 68,998 67,101 71,097 1 2,064 72,074 B f 73,604 443 73,024 950 Estimate includes funds for construction and renovation at 10 border inspection and patrol stations, repair and maintenance of stations, and continuation of a records improvement program. Refunds are made to certain persons who post departure bonds with the Attorney General. 71,097 \ B2,064 72,074 73,604 443 73,024 950 54,750 ] A 165 1,073 57,210 1,210 54,840 A 160 56,915 1 1,920 f FEDERAL PRISON SYSTEM Salaries and expenses, Bureau of NOA Prisons 908 Exp. o 1 IMMIGRATION AND NATURALIZATION SERVICE Salaries and expenses W d 53,136 B 54.200 A 5 1 Supplemental in 1965 is for wage-board pay increases. Increase in 1966 provides for additional treatment and administrative personnel, and the establishment of two prerelease guidance centers. Average number of inmates is estimated at 22,200 for both 1965 and 1966. Buildings and facilities Support of U.S. prisoners 908 NOA Exp. 9,525 3,124 19,202 8,520 3,610 -15,592 14,720 6,200 908 NOA Exp. 4,300 4,270 4,400 4,380 4,550 4,500 150 (2,100) -4,610 (2,190) -1,596 (2,315) -4,167 I nongovernmental funds: Federal Prison Industries, Inc.: Prison industries fund 908 Limitation on administrative and vocational training ex- Exp. penses. -9 Total, Federal Prison System. NOA 66,961 2 78,352 M65 B Total, Department of Justice. NOA Estimate provides for care of an average of 3,315 prisoners in 777 nonFederal institutions (including reimbursement to St. Elizabeths Hospital) at a cost of $3.72 per man-day, $0.10 higher than in 1965. (125) (Estimate provides vocational training for 11,650 inmates, employment of 5,400 inmates full time in various industries, and assistance in job -2,571 W placement upon release. A new industry will start operations at the Marion, 111., penitentiary.) Advances and reimbursements, Federal Prison System 908 Exp. Exp. 120 Estimate includes funds for planning a replacement for the New York detention headquarters, several major renovation and improvement projects, and a continuing program of repairs and improvements. 65,370 o o 1,073 C 12 66,146 A 160 71,968 A 5 365,123 A 5,195 ll,535 373,834 351,720 M.760 B 10,839 376,330 M35 56,976 344,463 -2 a B Exp. A B c 327,994 B Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. 696 C 1 3 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 to Increase or 1966 3 Explanation of NOA requests (-) DEI>ARTMENT OF LABOR MANPOWER ADMINISTRATION General and special funds: Salaries and expenses, Manpower NOA Administration 652 Limitation on unemployment trust fund. Exp. Manpower development and train- NOA ing activities 652 Exp. Area redevelopment activities _ 652 NOA W 16,780 (15,328) 14,000 129,992 109,970 8,500 Exp. 6,500 Trade adjustment activities, sal- NOA aries and expenses 652 Exp. 150 Salaries and expenses, Bureau of NOA Apprenticeship and Training 652 Exp. 307,906 103,000 210,000 A 10,000 A A 273,500 1 140,500 173,000 1 8,500 »16 8,000 1,844 344 308 56 5.647 5,541 B 181 5,675 New account consolidates financing of all Manpower Administration personnel and operations (formerly financed from 4 accounts) and (15,328) should contribute to improved personnel management and program operations. Anticipated management improvements and the elimina14,000 tion of lower priority activities results in a reduction of $1 million. Program increase of about $1 million over 1965 level will be devoted to managing the expanded youth employment program, improving the collection of job vacancy information, and increasing the promotion of on-the-job training. 3,094 45,000 ^92,000 -6,156 -344 145 5,458 16,780 -252 -5,722 227 -5,448 Supplemental in 1965 will provide for retraining of additional workers. In 1966, legislation will be proposed to reduce the level of required State matching and provide for other program improvements. In 1966 the Labor Department's personnel and administrative costs for conducting this program will be financed in the account "Salaries and expenses, Manpower Administration." Legislative authority expires at the end of fiscal year 1965. Special training authority for redevelopment areas will be proposed as part of new Manpower Development and Training Act legislation. Financing of program transferred to "Salaries and expenses, Bureau of International Labor Affairs." Program will be financed in the account "Salaries and expenses, Manpower Administration." d o o P Hi OS Special study on discrimination in NOA employment because of aging Exp. 652 100 96 4 Farm labor contractor registration NOA activities 652 Exp. 350 340 ... Limitation on salaries and expenses, Unemployment trust fund. (12,400) (13,325) A(178) B(450) Limitation on grants to States for unemployment compensation and employment service administration, Unemployment trust fund. Unemployment compensation for NOA Federal employees and exservicemen 652 Exp. A B (425,000) 152,000 152,514 (455,076) A (560) 126,000 20,000 126,643 A 20,000 A (Study will be completed in 1965.) -350 -330 Program will be financed in the account "Salaries and expenses, Manpower Administration." (-13,953) (1965 supplemental, both here and in limitation account below, will } provide funds for a stepped-up program for recruitment of domestic farm labor necessitated by expiration of authority on Dec. 31, 1964, for importation of farm labor under Mexican Farm Labor Act (Public Law 82-78). Program will be financed in the account "Salaries and expenses, Manpower Administration.") 39,280 39,280 Advances for employment serv- NOA ices 652 Exp. -100 -92 (492,100) 39,280 General fund advance to the Unemployment trust fund will provide $37 million to improve and expand youth employment services. Program 39,280 will be tied in closely to community antipoverty efforts and will support threefold expansion in professional youth employment personnel. Program will be underway in all urban areas with a population over 200,000 by end of 1966. $2.3 million will enable the Department to carry out a program for collecting job vacancy information. o Q W (36,464) (Increase is for continued general expansion and improvement of employment service, including services for older workers and minority groups, training programs for State personnel, and increases in State salary and administrative expenses. Partially offsetting are decreased contingency fund requirements and lower anticipated unemployment compensation claims workload.) 141,000 -5,000 Supplemental in 1965 is to meet the costs of additional claims and 136,700 -9,943 w > a higher benefits costs resulting from recent Federal pay increases. Decrease in 1966 results from anticipated decline in number of weeks compensated from 3.9 million to 3.8 million reflecting continuing improved economic conditions. Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. to CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account an d fu. 1964 code 1965 to Increase or 1966 Explanation of NOA requests (-) DEPARTMENT OF LABOR—Continued MANPOWER ADMINISTRATION—Con. General and special funds—Continued Compliance activities, Mexican NOA farm labor program 652 Exp. Limitation payable from Farm labor supply revolving fund. Salaries and expenses, Mexican Exp. farm labor program 652 Miscellaneous expired accounts. __ 652 Exp. 1,300 1,347 (1,168) 800 834 (800) 30 -800 -804 (-800) (Legislative authority expired Dec. 31, 1964.) (Legislative authority expired Dec. 31, 1964.) 1,184 812 15 -797 (Legislative authority expired Dec. 31, 1964.) -19,076 54 o -54 3 Public enterprise funds: Farm labor supply revolving fund Exp. 652 -1,200 26 Advances to employment security Exp. administration account, Unemployment trust fund 652 -7,435 -3,773 Advances and reimbursements, Exp. Manpower Administration __ 652 -207 53 Total, Manpower Administra- NOA tion. 297,400 Exp. 249,389 -3,800 -26 (Legislative authority expired Dec. 31, 1964.) -27 (Payments are made to the Unemployment trust fund pending later return of receipts. Repayments in excess of current advances are reflected as minus expenditures.) Intragovernmental funds: 449,541 123,000 B 197 349,068 A 30.000 A -53 A 470,560 1 140,500 38,322 361,366 | 92,000 74,298 A CO LABOR-MANAGEMENT RELATIONS General and special funds: Salaries and expenses, Labor- NOA Management Services Administration 652 Exp. Salaries and expenses, Bureau of NOA Veterans' Reemployment Rights 805 Exp. Salaries and expenses. Bureau of Exp. Labor-Management Reports 652 Total, labor-management re- NOA lations. Exp. 7,499 6.836 784 756 7,502 1 B 241 7,552 7,995 837 8,427 875 791 1 30 818 -821 1 B 403 8,283 8,580 73 8,293 | B271 8,394 The Bureau of Veterans' Reemployment Rights has been merged into the Labor-Management Services Administration above. -745 -24 24 Increase reflects merger of appropriation below and expansion of research and other assistance to labor and management and Federal mediation agencies, partly offset by management improvements in the processing of labor-management reports. 8,580 16 8,500 106 3,282 -393 3,272 -385 The Bureau of Labor-Management Reports has been merged into the Labor-Management Services Administration above. WAGE AND LABOR STANDARDS Salaries and expenses, Bureau of NOA Labor Standards 652 Exp. 3,769 3,556 | B 119 3,657 -60 60 3,470 Decrease reflects transfer of youth employment activity to the Manpower Administration and direct financing of the Federal Radiation Council. 4 lntragovernmental funds: Advances and reimbursements, Exp. Bureau of Labor Standards.652 -60 (Decrease reflects 1965 expenditures against obligations incurred in 1964.) O General and special funds: Salaries and expenses, Women's NOA Bureau 652 Exp. Intragovernmental funds: Advances and reimbursements, Exp. Women's Bureau 652 A B 812 772 1 27 796 -10 8 784 B 860 61 855 59 2 -6 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Increase reflects direct financing of the costs of a Bureau Director. (Decrease reflects change in obligated balance during 1965.) to C7I ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 estimate 1966 Increase or decrease 3! Explanation of NOA requests DEPARTMENT OF LABOR—Continued WAGE AND LABOR STANDARDS—Con. General and special funds: Salaries and expenses, Wage and NOA Hour Division 652 Exp. 19,279 Salaries and expenses, Bureau of NOA Employees' Compensation. _906 4,275 Exp. Employees' compensation claims NOA and expenses 906 Exp. 19,926 4,369 58,838 58,812 20,378 ] B 574 20,501 21,040 88 21,015 514 4,370 -164 4,713 4,354 -359 52,650 50,525 49,606 44,996 -3,044 -5,529 4,368 B 162 c4 Wage and labor standards: (Labor and manpower and cen- NOA tral personnel manage- Exp. ment) 652 906 NOA Exp. A—687 A A -124 A-124 Total, wage and labor stand- NOA ards 86,646 Exp. 87,617 -687 81,724 Decrease reflects anticipated management improvements and increased productivity resulting from installation of new workload and productivity measurement system. Decrease reflects rising reimbursements from agencies employing workers injured on the job, partially offset by increased costs for hospitalizing beneficiaries in community hospitals in lieu of free care provided in Public Health Service hospitals to be closed in 1965. - 6 8 7 ^ Actions are now in progress to improve management and eliminate lower -687 I priority activities. Specific distribution of the expected savings will > be made by budget amendment when the actions are completed. -124 (The current functional distribution is arbitrary and subject to ad-124 / justment.) 79,158 —811 -4,263 74,494 A—811 -6.577 A c4 80,260 Estimate reflects anticipated increase in number of establishments investigated, partly offset by increased productivity. o BUREAU OF LABOR STATISTICS 16.580 17,925 1 B 617 17,615 1,320 1,342 127 Advances and reimbursements. 652 Exp. -51 199 Total, Bureau of Labor Sta- NOA tistics. Exp. 17,665 Salaries and expenses 652 NOA Exp. Revision of the Consumer Price NOA Index 652 Exp. 16,345 20,601 2,059 19.165 1,550 -127 Increase will be primarily devoted to (a) improving manpower data on employment, unemployment, hours of work, and earnings; and (b) expanding survey of employer pay rates and levels to include smaller businesses, more occupations, and more localities; begin work on State and local government salaries; and expand studies of employer provided fringe benefits. (The revision has been completed.) Intragovernmental funds: 17,870 17,925 | B 617 17.941 9 -190 20,601 2,059 19.174 1,233 3 BUREAU OF INTERNATIONAL LABOR AFFAIRS o o General and special funds: Salaries and expenses 652 NOA 842 856 |. 26 827 B Exp. 899 Advances and reimbursements .652 Exp. 39 Total, Bureau of International NOA Labor Affairs. Exp. 842 856 1 938 827 1,204 322 1,187 360 o Intragovernmental funds: A B c Increase reflects transfer of financing for trade negotiation activities from "Trade adjustment activities" account. 1,204 322 1,187 360 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian increase supplemental. Proposed for separate transmittal, military pay increase supplemental. to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY A G E N C Y (in thousands of dollars)—Continued 1965 1964 Account and functional code 1966 Increase or Explanation of NOA requests (-) 3 00 DEPARTMENT OF LABOR—Continued OFFICE OF THE SOLICITOR General and special funds: Salaries and expenses 652 NOA 4,420 Limitation payable from Unemployment trust fund. Exp. (127) 4,616 4,857 1 B 190 (136) 5,045 5,300 253 (136) 5,240 195 3,545 200 (140) 3,571 26 Increase provides expanded staff to administer the Davis-Bacon Fringe Benefits Act, approved July 2, 1964. OFFICE OF THE SECRETARY Salaries and expenses 652 NOA Limitation payable from Unemployment trust fund. Exp. 3,183 ] B 162 (140) 3,545 2,219 (138) 1,894 Increase provides for expanded program planning and analysis staff, and the cost of new Wage Appeals Board. 3 3 Ul I nongovernmental funds: Working capital fund 652 Exp. 114 Advances and reimbursements_652 Exp. -19 Total, Office of the Secretary- Total, Department of Labor. NOA 2,219 Exp. 1,989 NOA 417,474 Exp. 370,415 3,183 B 162 3,545 566,379 123,000 B 2,345 c4 462,822 ^30,000 B 2,254 A 3,545 200 3,571 26 588,948 1 M39,689 36,909 473,441 1 A91.189 69,641 POST OFFICE DEPARTMENT Public enterprise funds: Contribution to the postal fund NOA (indefinite) 505 Exp. Authorizations and limitations on use of postal fund: Administration and regional operation. Research, development, and engineering. Operations Transportation _, __ - _ Facilities Construction, postal facilities _ _ A B c 719,102 577,699 (81,507) B 552,000 203,714 718,000 765,468 j 101,908 92,154 695,800 1 -4,200 A 18,000 A (85,500) 1 (88,100) Estimated obligations of $5,554 million, less estimated revenues and reimbursements of $4,696 million, leave $858 million to be contributed. This is an increase of $269 million in obligations ($115 million for mail volume and $153 million for improved facilities and equipment) and $173 million in revenues (primarily mail volume). After deducting costs determined by law to be public services, the deficit in postal revenues is estimated to be $234 million, compared with $302 million for 1965 and $ 199 million for 1964. Supplemental for 1966 is to carry out a legislative proposal for construction of facilities. (659) (Increase is mainly for strengthening management.) B(1,941) (13,000) (1,000) (Increase is to strengthen research program and develop mail handling equipment, including an automatic reader to process ZIP-coded mail.) (3,917,000) (4,027,000) 1(4,333,900) B (207.773) (99,127) (Increase is due to growth in mail volume (3%) and in delivery areas, partly offset by increased productivity and presorting by mailers.) (11.913) (601,000) (196,005) (12,000) (592,024) (199,476) (598,000) (226,000) A (92,154) (5,976) (Increase due to growth in mail volume is offset in part from economies in transportation services and reduction in air transportation rates overseas.) (26,524) (Increase is for new and improved postal space and for postal supplies to handle increased mail volume.) o o % O (92,154) (Proposed legislation would provide for the Federal construction of facilities exclusively used for postal purposes.) Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. fcO CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enactec Account and functional code 1965 1966 Increase or to o 00 Explanation of NOA requests (-) POST OFFICE DEPARTMENT—Continued Public enterprise funds—Continued Authorizations and limitations on use of postal fund—Con. Plant and equipment (118,075) B (86,000) 1 (124,000) (-6,000) (44,000) (Normal level of repairs and improvements to facilities will be resumed in 1966, and additional mechanical equipment will be purchased.) a (4,925,500) (5,002,000) (5,383,000) 1(269,440) B (203,714) A(92,154) Total authorizations out of postal fund. Total, Post Office Department NOA 719,102 Exp. 577,699 552,000 203,714 520,554 B 197,446 B 765,468 92,154 101,908 689,532 A 18,000 B 6,268 -4,200 A 3 o D E P A R T M E N T OF STATE ADMINISTRATION OF FOREIGN AFFAIRS General and special funds: Salaries and expenses Representation allowances _ 151 NOA 152,953 Exp. 148,852 151 NOA Exp. 973 978 164,000 1 181,675 10,030 A 900 B 6,745 161,500 173,300 1 12,300 A A 200 700 993 990 1,050 1,000 3 57 10 Supplemental for 1965 will finance additional security protection Major increases in 1966 are for security, communications, cost rises and efforts to expand U.S. exports. Increase is due largely to new posts and rising prices overseas. Acquisition, operation, and main- NOA tenance of buildings abroad. -151 Exp. 18,125 11,999 18,125 15,000 20,000 18.000 1,875 3,000 Increase is chiefly for construction of overseas office buildings. Acquisition, operation, and main- NOA tenance of buildings abroad Exp. (special foreign currency program) 151 2,750 3,691 5,000 4,000 6,500 5,000 1,500 1,000 Increase reflects greater emphasis on projects in overseas foreign currency countries. Emergencies in the diplomatic NOA and consular service 151 Exp. 1,900 1,5001 A 500j 1,600 A 100 1,600 -400 Provides for relief and repatriation loans to U.S. citizens abroad and other emergencies. Supplemental for 1965 is for requirements in excess of earlier estimates. Extension and remodeling, State Exp. Department Building 151 166 200 200 Replacement of passenger motor NOA vehicles sold abroad (perma- Exp. nent, indefinite, special fund) _151 299 260 335 315 350 330 15 15 -17 -41 -24 1.868 Intragovernmental funds: Working capital fund 151 Advances and reimbursements. 151 A B Exp. Exp. 1,5001 M00j (All funds will be obligated or withdrawn by the end of 1965.) 356 Total, administration of for- NOA eign affairs. 176,999 Exp. 168,170 13,077 189,953 1 211,175 A 1,400 B 6,745 183,588 199,289 1 16,501 A A 300 1,100 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. 200 Proceeds available in 1966 will replace 150 vehicles. (The fund was initiated in 1965 to finance publishing, supply, and other support services.) 3 M ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 1966 Increase or 8 Explanation of NOA requests (-) DEPARTMENT OF STATE-£ontinued INTERNATIONAL ORGANIZATIONS AND CONFERENCES General and special funds: Contributions to international NOA organizations 151 Exp. 99,679 88,534 1 B-986 99,503 Missions to international organi- NOA zations 151 Exp. 2,500 International conferences contingencies 87,500 f 97,776 10,228 97,700 10,200 Increase reflects expansion of the programs of most international organizations, requiring higher U.S. contributions to the assessment budgets. 55 Higher costs of providing necessary representation to the various inter- 3,400 2,741 3,165 1 B 180 3,100 3,200 100 and NOA 151 Exp. 1,943 2,080 1,943 2,000 2,185 2,100 242 100 Two large periodic U.N. meetings to be held in 1966 and higher costs of other conferences are responsible for the increase. International tariff negotiations. _ NOA 151 Exp. 365 1,000 150 Increase is to meet longer periods of negotiations expected in 1966. 900 270 Loan to the United Nations _ _ 151 Exp. 115 630 4,193 17,384 -5 Total, international organiza- NOA tions and conferences. Exp. 104,487 Commission 1,000 1 B-150 on Exp. 151 U.S. Citizens NATO f 108,627 f national organizations account for the increase. -17,384 94,642 1 104,361 B—956 103,900 110,614 f d o 10,675 -6,714 (Estimates reflect the amount of U.N. bonds the United States may purchase to match pledges by other nations.) CO a a a INTERNATIONAL COMMISSIONS International Boundary and Water Commission, United States and Mexico: Salaries and expenses 401 NO A Exp. Operation and maintenance _ 401 2 42 Exp. 2,051 2.026 2,029 3 6,496 7,546 8,298 13,207 13,883 15,800 5,585 2,593 Work on Amistad and Lower Rio Grande projects will continue; claims arising from operation of Falcon Reservoir will be settled. 30,000 10,000 20,000 -30,000 10.000 Work continues at a maximum rate. If additional funds can be effectively utilized in 1966, an appropriation will be requested. 401 NOA Exp. NOA 430 Exp. 404 2,000 1,840 commis404 NOA Exp. Restoration of salmon runs, Fraser River system, International Pacific Salmon Fisheries Commission 404 Exp. Total, international commissions. NOA 11,656 Exp. 12,556 2,025 1,900 58 Increase is largely for additional water pollution surveys under joint 500 50 2,300 2,200 275 300 plans with Canada. -51 51 43,531 1 B 66 28,448 Estimate reflects additional project maintenance requirements and installation of advanced water data recording system. 530 460 1 12 450 B 19,557 -24,040 41,345 12,897 Proposed for separate transmittal, civilian pay increase supplemental. 816 2,029 Chamizal settlement B Eight project feasibility studies will be continued and one will be initiated. 1,963 | B 24 NOA Exp. fisheries 815 2,015 401 International sions 714 785 1 30 814 B NOA Construction American sections, international commissions 401 715 Provides U.S. share of 8 international fisheries commissions. (Activities under this account will be completed in 1965.) o o w to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued ,etio«l 1966 1965 1964 Increase or Explanation of NOA requests (-) DEPARTMENT OF STATE—Continued 3 w EDUCATIONAL EXCHANGE General and special funds—Continued Mutual educational and cultural NOA exchange activities 153 Exp. 82 Increase represents shift in financing from the declining balances of the account immediately following, and expansion and improvement of the exchange program. 42,624 34,560 44,998 39,000 55,250 46,400 10,252 7,400 International educational ex- Exp. change activities (special foreign currency program) 153 6,349 6,800 7,000 200 (Expenditures will continue until prior appropriations are exhausted.) Center for Cultural and Technical NOA Interchange Between East and Exp. West 153 5,100 4,228 5,300 5,100 6,250 5,500 950 400 Increase will allow greater number of scholarships, and preconstruction planning for new library building. £ Preservation of ancient Nubian Exp. monuments (special foreign currency program) 153 347 525 -525 (These funds are expected to be fully spent in 1965.) I Educational, scientific, and cul- Exp. tural activities 153 21 12 -12 (These funds are expected to be fully spent in 1965.) Educational exchange permanent NOA appropriations (indefinite, spe- Exp. cial funds) 153 396 396 396 450 412 400 -12 Current payments by Finland on World War I debts are used for educational exchanges with Finland. Total, educational exchange. _ NOA Exp. 48,119 45,956 50,694 51,849 61,896 59.300 11,202 o CO 7,451 OS OTHER Migration and refugee assistance. NOA 152 Exp. 10,550 8,849 8,200 9,900 7,575 7,800 -2,100 Decrease reflects less U.S. support for resettlement of migrants and care of European refugees, smaller influx of refugees into Hong Kong, and more participation by other nations in care of Tibetan refugees. 150 75 150 75 Statue of Lincoln will be presented in commemoration of Mexican independence, as authorized by law. Presentation of a statue to Mexico. NOA 151 Exp. -625 The last construction contract has been awarded. Completion of the road is anticipated in 1967. Rama Road, Nicaragua (liquidation of contract authorization) -_ Exp. 152 (850) 1.038 1,000 1,000 Payment to the Republic of NOA Panama (permanent) 151 Exp. 1,930 1,930 1,930 1,930 1,930 1,930 NOA Exp. 12,480 10,130 9,655 11,817 12,830 10,805 -475 -2,025 353,741 388,950 A 1,400 B 5,855 406,644 10,439 347,126 381,661 414,452 A 1,100 28,110 Total, other.. Total, Department of State.. NOA Exp. A B A 300 B 5,668 B 187 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Annual payment is made under treaty for Panama Canal rights. $430 thousand of this is recovered from the Panama Canal Company. ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 to Increase or 1966 1965 Explanation of NOA requests 00 TREASURY DEPARTMENT OFFICE OF THE SECRETARY General and special funds: Salaries and expenses 904 NOA Exp. Expenses of administration of set- NOA tlement of War Claims Act of Exp. 1928 (permanent, indefinite, special fund) 904 5,224 5,270 12 13 5,550 B 343 5,725 5,920 27 5,635 90 13 15 15 15 Increase in 1966 will strengthen the supervision of bureau operations, and legal and administrative services. Funds are appropriated from a receipt account for administrative expenses of paying awards under the act. a S Federal control of transportation Exp. systems 904 Cl Public enterprise funds: Liquidation of corporate assets: Exp. Reconstruction Finance Corporation liquidation fund 904 -2,436 -10 10 (This fund was closed out as of Dec. 31, 1964.) Civil defense loans: Civil defense Exp. program fund 059 -59 -29 29 (This fund was closed out as of Dec. 31, 1964.) -410 -142 -168 -26 5,563 B 343 5,560 5,935 29 5,483 -77 Liquidation of Federal Mortgage Corporation Farm Exp. 904 I ntragovern mental funds: 1 Advances and reimbursements_904 Exp. Total, Office of the Secretary. NOA Exp. 5,236 2,379 (Repayments and interest earnings exceed expenses.) BUREAU OF ACCOUNTS General and special funds: Salaries and expenses 904 NOA Exp. 4,054 3,877 33,000 25,310 Salaries and expenses, Division of NOA Disbursement 904 Exp. 30,556 27,976 Claims, judgments, and relief acts: Current, definite 910 NOA Exp. 765 6,337 Increase results from increased work volume and purchase of additional ADP system, partially offset by a nonrecurring purchase of electronic equipment in 1965 and projected management savings. 6,130 -6,130 This appropriation was merged with "Salaries and expenses, Bureau of Accounts" in 1965. 26,536 25,558 33,746 34,599 -33,746 -34,599 Appropriations are made in individual private relief acts. For certain claims and for judgments over $100 thousand, the specific items are presented to Congress. 33,765 31,647 Permanent definite 910 NOA Exp. 3 3 7 7 7 7 Awards are paid annually to 3 persons as a result of private relief acts. Permanent, indefinite 910 NOA 6,335 6,335 6,000 6,000 6,000 6,000 Judgments of $100 thousand or less are paid from this permanent appropriation. Interest on uninvested funds (per- NOA manent, indefinite) 853 Exp. 10,749 10,719 11,958 11,958 12,457 12,457 John F. Kennedy Memorial Fund NOA (special fund) , 910 Exp. 1 Interest is paid on open book balances of 8 trust funds. o Gifts to the United States in memory of President Kennedy are used for the purposes specified. Public enterprise funds: Fund for payment of Government NOA losses in shipment 904 Exp. 550 339 75 75 Total, Bureau of Accounts _ _ NOA Exp. 78,786 74,808 84,711 84.079 52,229 50,186 B 499 499 3O Fund covers losses in shipment of certain Government property and losses in redemption of savings bonds. a -32,482 -33,893 Proposed for separate transmittal, civilian pay increase supplemental. to 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 code 1965 Increase or decrease (-) 1966 Explanation of NOA requests 8 00 TREASURY DEPARTMENT—Continued BUREAU OF CUSTOMS General and special funds: 72,454 Salaries and expenses 904 NOA 74,621 Exp, BUREAU OF ENGRAVING AND PRINTING Air conditioning the Bureau of En- NOA graving and Printing buildings Exp. 904 Intragovernmental funds: Bureau of Engraving and Printing Exp. fund 904 Total, Bureau of Engraving NOA and Printing. Exp. 76,517 A 120 2,144 78,256 A 115 82,850 4,069 376 Supplemental in 1965 is for wage board increases. Increase in 1966 will add manpower to meet greater work volume and strengthen enforcement, and will initiate program for installation of automatic data processing. -5,750 The installation will be completed with balances of prior appropriations. B 78,742 148 5,750 2.925 2,976 51 253 3,514 -260 -3,774 401 5,750 6,439 2,716 -5,750 -3,723 o > (Decrease results from major expenditures for equipment in 1965 nonrecurring in 1966.) CO o General and special funds: 904 NOA 8,100 Exp. 7,943 Construction of mint facilities _ 904 NOA Reappropriation NOA Exp. o A5 BUREAU OF THE MINT Salaries and expenses d 14,480 B 134 13,846 13,350 —1,264 12,674 -1,172 16,000 | 500 2,764 1,000 -15,500 7,549 4,785 Decrease represents the deletion of silver dollars from the coin production program and nonrecurring equipment purchases. Funds requested in 1966 will permit acquisition of land adjacent to the New York Assay Office. Minor coinage profits, etc. (per- NOA manent, indefinite, special fund) Exp. 904 533 464 738 849 988 988 250 139 Increase in appropriation of seigniorage is for transportation and other costs related to the production of additional minor coins. Silver profit fund (permanent, in- NOA definite, special fund) 904 Exp. 784 758 1,271 1,364 1,386 1,386 115 Increase in appropriation of seigniorage is for transportation and other costs related to production of additional subsidiary coins. 16,724 -16,399 22,597 3,774 5,970 313 5,697 354 50,330 93 48,098 -639 285,200 11,451 270,916 2,804 109,250 64,742 24,250 20,380 NOA 9,417 Exp. 9,164 908 NOA 5,350 Exp. 5,389 Total, Bureau of the Mint___ 32,989 1 B 134 18,823 1 22 BUREAU OF NARCOTICS Salaries and expenses 5,550 1 B 107 5,343 J Increase will permit additional clerical staff to assist in increasing agent productivity. BUREAU OF THE PUBLIC DEBT 49,570 1 B667 48,737 Administering the public debt_904 NOA 47,992 Exp. 48,545 502 NOA 259,793 Exp. 254,184 271,097 ) B 552 C2,100 268,112 Acquisition, construction, and im- NOA provements 502 Exp. 51,000 44,137 85,000 44,362 } Increase will cover redemptions of additional savings bonds, and increased savings bond stock, offset in part by nonrecurring equipment purchases in 1965. a COAST GUARD Operating expenses A B c D Proposed for Proposed for Proposed for To carry out o a J D separate transmittal, other than pay increase supplemental. separate transmittal, civilian pay increase supplemental. separate transmittal, military pay increase supplemental. authorizing legislation to be proposed. Increase will operate new vessels, aircraft, navigational aids, and shore establishments, improve search and rescue effectiveness, expand efforts in oceanography, extend loran navigational service, and improve military readiness. Estimate provides for construction of 9 replacement and 5 additional vessels and 1 offshore structure to replace a lightship, the acquisition of 8 replacement and 9 additional helicopters and 1 replacement fixed wing aircraft, and other improvements to existing facilities. 3 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES B Y AGENCY (in thousands of dollars)—Continued 1964 enacted 1965 estimate 1966 estimate Increase or decrease Explanation of NOA requests TREASURY DEPARTMENT—Continued COAST GUARD—Continued General and special funds—Continued Retired pay 502 NOA Exp. Reserve training 502 NOA 34,400 34,152 37,500 37,412 40,300 38,499 2,800 1,087 A net average increase of 797 persons on the retired rolls is expected. 19,500 20,700 23,750 2,811 18,962 B14 225 20,332 22,409 2,077 Increase will provide 500 reservists in a new program providing 2 years of extended active duty, for operation of 2 additional Reserve training vessels, and furnishing of 15 organized Reserve training units with operational equipment. 570 -68 -2,199 747 155 -592 364,693 414,297 B 566 C2,325 370,897 458,500 41,312 396,721 25,824 18,120 1,279 17.222 -13,287 148,695 1 166,000 B 4,592 149,260 157,785 12,713 C Exp. Intragovernmental funds: Coast Guard supply fund Coast Guard yard fund Total, Coast Guard 502 Exp. 502 Exp. NOA Exp. 349,806 68 (Receipts will equal expenditures in 1966 with sales of $18.5 million.) (Expenditures will exceed receipts slightly in a $15.5 million program.) INTERNAL REVENUE SERVICE General and special funds: Salaries and expenses 904 NOA 550,307 Exp. 560,196 Revenue accounting and proc- NOA essing 904 Exp. 16,246 | B 595 30,509 8,525 Increase is primarily to strengthen internal audits and security. Appropriation now provides for management and direction, but in 1964 also covered activities in the two following appropriations. Expansion of the master file data processing system will be continued in 1966. W o a Compliance 904 NOA 418,033 | 453,500 12,504 414,473 430,925 B Exp. Refunding internal revenue collec- NOA tions, interest (permanent, in- Exp. definite) 852 88,502 88,409 74,675 74,515 81,675 81,515 Internal revenue collections for NOA Puerto Rico (permanent, in- Exp. definite, special fund) 910 45,153 44,962 47,000 47,000 47,000 47,000 Total, Internal Revenue Serv- NOA ice. Exp. 683,962 693,567 704,649 1 766,295 17,691 715,757 734,447 B 16,452 Increase will provide the manpower to cover an increase from 101.9 million to 103.8 million returns and to improve the level of taxpayer compliance. 7,000 7,000 Interest is paid at 6% per annum on internal revenue collections which must be refunded. 22,963 Taxes on articles produced in Puerto Rico are paid to Puerto Rico. 43,955 18,690 OFFICE OF THE TREASURER Salaries and expenses 904 NOA 13,956 Exp. 13,657 6,000 1 B 235 6,330 6,350 115 6,038 -292 2 -3 6,350 115 6,040 -295 Increase provides additional funds for equipment and supplies. o a Public enterprise funds: Check forgery insurance fund. 904 NOA Exp. 50 20 14,006 Total Office of the Treasurer. NOA 13,677 The fund covers settlements of checks paid on forged endorsements. 5 6,000 1 B 235 6,335 Exp. B c o Proposed for separate transmittal. civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. to CO to CO I3 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 1966 Increase or Explanation of NOA requests TREASURY DEPARTMENT—Continued U.S. SECRET SERVICE General and special funds: Salaries and expenses a 8,750 440 8,490 A 90 456 1,730 B 129 1,789 1,866 7 1,785 -4 434 -2 392 420 16 427 412 -15 426 426 450 450 470 470 20 20 9,356 10,100 A 595 11,520 465 9,134 10,285 A505 11,157 A 90 457 908 NOA 6,830 Exp. 6,595 White NOA 903 Exp. 1,700 guard NOA 904 Exp. 400 Contribution for annuity benefits NOA (permanent, indefinite) 903 Exp. Salaries and expenses, House Police Salaries force and expenses, Total, U.S. Secret Service. „ _ NOA 1,720 7,500 A 595 B 215 7,619 A505 B B360 Exp. Supplemental in 1965 and increase in 1966 are to expand the protective capabilities of the Service. 2 The increase is for mandatory longevity increases. The guard force will be maintained at the same level during 1965 and 1966. The District of Columbia is reimbursed for benefit payments made for Secret Service employees. INTEREST ON THE PUBLIC DEBT Interest on the public debt (per- NOA10,665,858 11,200,000 11,500,000 manent, indefinite) 851 Exp.10,665,858 11,200,000 11,500,000 Total, Treasury Department. NOA Exp. 11,957,110 12,595,696 A 715 B 22,247 C 2,325 11,947,349 12,526,659 A 620 B21.527 C 2,325 300,000 300,000 12,956,703 335,720 12,861,164 310,848 The increase reflects a higher average level of outstanding debt, and i higher average rate of interest. A95 B 720 ATOMIC ENERGY COMMISSION General and special funds: Operating expenses 058 NOA 2,342,661 Exp. 2,398,717 Plant and capital equipment. _058 NOA Exp. 400,000 370,100 2,261,555 2,280,000 363,000 420,000 G -30,555 -95,000 Estimate provides increases for reactor development, basic research in the physical and biomedical sciences, and for civilian applications of nuclear explosives and radio isotopes; these are more than offset by decreases in procurement of uranium concentrates, production of special nuclear materials, and the weapons program. Two major cooperative power reactor projects will be initiated. 250,000 -113,000 345,000 -75,000 Estimate provides for a lower level of equipment procurement and of new construction projects in support of research, development, and production operating programs. 2,231,000 2,185,000 H o o 3 o Intragovernmental funds: Advances and reimbursements_058 Exp. -4,252 Total, Atomic Energy Com- NOA mission. Exp. 2,742,661 2,764,565 2,624,555 2,700,000 2,481,000 -143,555 2,530,000 -170,000 A Proposed for separate transmittal, other than pay increase supplemental. Proposed (or separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. ° Includes $2,226,490 thousand to carry out authorizing legislation to be proposed. H Includes $249,300 thousand to carry out authorizing legislation to be proposed. B c to CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 1965 1966 Increase or to Explanation of NOA requests (-) FEDE1fcAL AVIATION AGENCY General and special funds: 527,901 -1,600 545,000 5,000 -17,000 Estimate provides chiefly for purchase and installation of equipment to improve the national air traffic control and navigation system. Major portion of the estimate is for electronic devices to automate certain traffic control functions. Work on improved airways equipment will be continued at about the 1965 level with stress on air traffic control systems and devices. 517,697 100,250 95,555 50,000 85,000 51,000 68,000 40,000 40,000 37,000 40,000 38,000 1,000 3,730 107 3,300 3,700 400 4,319 | B 60 4,000 4,720 341 4,500 500 Construction, Washington Na- NOA tional Airport 501 Exp. 4,103 2,075 2,595 1,710 3,600 1,100 2,000 -610 -1,600 Construction, Dulles International NOA Airport 501 Exp. 450 31 180 400 200 180 20 -220 B 501 NOA Costs of operating newly commissioned airways facilities and handling air traffic increases will be more than offset by productivity gains and other economy measures. 553,500 542,600 j 12,500 540,000 Operations Exp. Facilities and equipment 501 NOA Exp. Research and development 501 NOA Exp. Operation and maintenance, NOA Washington National Airport 501 Exp. 1,000 51,534 3,582 3.565 | B58 Airport services will be provided at approximately the present level Receipts to the general fund recover the costs. 3,437 Operation and maintenance, Dulles NOA International Airport 501 Exp. Grants-in-aid for airports 501 NOA Permanent NOA Liquidation of contract authorization 501 Exp. 3,985 75,000 75,000 (20,000) 65,247 (7,000) 57,193 Estimate is for reconstructing certain apron areas. Estimate is for various minor improvement and construction projects. Amounts for 1966 were enacted in the 1965 appropriation act. Budget proposes an appropriation of $62.5 million for 1967. 75~666~ 60,120 Estimate provides for an increase in services in line with expected growth in traffic. (-7,000) 2,927 o s I Civil supersonic aircraft develop- NOA ment 501 Exp. Construction and development, Exp. additional Washington airport 501 60,000 4,993 48,500 25,700 -22,800 (Expenditures decline with completion of the design competition and research projects. 1966 recommendations will be submitted later.) 5,356 2,000 2,800 800 (Expenditures are forfinalpayments to contractors for construction of the airport.) Claims, Federal Airport Act.. _501 Exp. 4 -4 Construction of public airports in Exp. Alaska 501 3 -3 Total, Federal Agency Aviation NOA Exp. 813,243 750,550 717,374 12,618 769,191 B l1,809 B 729,250 -742 749,191 B 809 -31,000 W GENERAL SERVICES ADMINISTRATION 3 O O REAL PROPERTY ACTIVITIES General and special funds: Operating expenses, Public Build- NOA ings Service 905 Exp. Repair and improvement of public NOA buildings 905 Exp. Construction, projects public buildings NOA 905 Exp. 218,847 214,852 222,317 A 2,760 B 1,295 223,500 A 2,760 230,618 4,246 229,500 3,240 -10,400 90,000 75,000 79,600 69,600 157,601 153,167 M,506 160,000 183,751 166,000 A3,000 A B Proposed for separate transmittal, other than pay increase supplemental. Proposed (or separate transmittal, civilian pay increase supplemental. o O 75,000 73,365 160,818 Supplemental in 1965 is for wage board increases. Increase in 1966 is primarily for operation of new Federal buildings scheduled for occupancy in 1965 and 1966, partly offset by rent savings on space released. -5,400 26,078 Decrease is due to deferral of lower priority projects until later years.. _ Supplemental in 1965 is for Internal Revenue Service Center, Ogden, Utah. Estimate includes 24 new projects, extension and conversion of 9 projects and the purchase of an office building. 9,000 C ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 enacted 1965 1966 Increase or decrease Explanation of NOA requests GENERAL SERVICES ADMINISTRATION—Continued REAL PROPERTY ACTIVITIES-Con. General and special funds—Continued Sites and expenses, public build- NOA ings projects 905 Exp. 40,000 35,344 20,109 25,000 20,000 23,000 -109 -2,000 Estimate provides for design and site acquisition, where necessary, for public building projects. Payments, public buildings pur- NOA chase contracts.._ _ _ _905 Exp. 5,200 5,168 9,885 9,885 3,380 3,380 -6,505 -6,505 Request provides for payment on the remaining 6 lease-purchase contracts. Expenses, U.S. court facilities_905 NOA Exp. 1,031 447 1,031 1,145 2,100 1,635 1,069 490 Request provides for space expansion and for furniture and furnishings of U.S. courts. Additional court facilities 905 Exp. 2,291 2,200 1,620 -580 (Appropriations in prior years will complete facilities for 73 additional judges.) Construction, Federal Office Build- Exp. ing No. 7, Washington, D.C.905 977 9,000 11,000 2,000 (Construction is financed by a 1962 appropriation.) Hospital facilities in the District Exp. of Columbia 905 915 2,085 510 -1,575 (Expenditures are for a Federal grant for construction of a new hospital in southeast Washington.) Improvements, national industrial Exp. reserve plant No. 485 905 33 753 314 -439 (A prior year appropriation provided improvements essential to national defense.) Construction, public buildings_905 Exp. 100 18 -18 Construction, U.S. Mission Build- Exp. ing, New York, N.Y 905 131 -131 Sites and planning, public buildings Exp. outside the District of Columbia 905 14 -14 (Construction of the last of 5 border stations was completed in October 1963.) (Expenditures are payments of prior obligations.) (Expenditures are payments of prior obligations.) W d o a s I a > CD Oi Intragovernmental funds: -14,237 2,500 Construction services, public build- Exp. ings 905 -6,925 -4,900 Total, real property activities. NOA 497,678 Exp. 473,149 496,509 1 519,449 14,379 A 7,266 B 1,295 506,331 506,059 1 -32 A A 2,760 3,000 Buildings management fund. _905 Exp. -500 -3,000 4,900 (Operating costs are estimated at $377.3 million.) (Operating costs are estimated at $16.3 million.) J w f PERSONAL PROPERTY ACTIVITIES General and special funds: Operating expenses, Federal Sup- NOA ply Service 905 48,280 Exp. 46,596 Expenses, supply distribution.905 Exp. 14 10 905 NOA Exp. 30,000 28,312 1,800 Advances and reimbursements_9Q5 Exp. 1 Total, personal property ac- NOA tivities. 78,280 Intragovernmental funds: General supply fund Exp. A B 50,670 1 2,835 1,332 52,200 A 2,550 A B 74,923 J 56,300 1 A 285 Supplemental in 1965 is requested to support additional supply sales. The increase in 1966 is for further increases in supply support to Government agencies. 1,835 1 o a w -10 -3,905 -5,705 56,640 1,803 Sales to the military and civil agencies are estimated at $704 million in 1966. Customer advances will help provide capital. 3 50,670 1 A 2,835 B 1,332 54,010 A 2,550 J O 52,395 1 -3,880 A 285 Proposed (or separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. 1,803 56,640 1 to to CO 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1966 1965 Increase or Explanation of NOA requests (-) GENERAL SERVICES ADMINISTRATION—Continued w d UTILIZATION AND DISPOSAL ACTIVITIES o o General and special funds: 9,512 288 300 Operating expenses. Utilization NOA and Disposal Service 905 Exp. 9,360 8,592 9.400 9,800 9,700 Expenses, disposal of surplus real NOA and related personal property Exp. (permanent, indefinite, special fund) 905 844 994 1,000 1.000 1,000 1.000 Total, utilization and dis- NOA posal activities. Exp. 10,203 9.585 10,512 10.400 10,800 10.700 288 300 14,730 15,172 | B 542 15.300 15,956 242 15.600 300 500 400 150 100 16,456 392 16.000 400 Increase provides for further emphasis on reuse or prompt disposal of excess real and personal property. Proceeds of sales are appropriated for certain expenses of disposals. CO RECORDS ACTIVITIES Operating expenses, National Ar- NOA chives and Records Service.905 Exp. 14.546 National historical publications NOA grants 905 Exp. Total, records activities NOA 350 300 14,730 15,522 1 •p c Exp. 14.546 JO "542 15.600 Increase is primarily for records center activities. Records in custody will total 9 million cubic feet in 1966. Increase is to provide full amount authorized annually for collecting, reproducing and publishing source material significant to U.S. history. TRANSPORTATION AND COMMUNICATIONS ACTIVITIES Operating expenses, Transportation and Communications Service 905 6,022 313 4,866 5,484 j B 225 5,624 5,934 310 -635 -158 1.016 1.174 4,958 6,022 313 4,230 5,484 | B 225 5,466 6.950 1.484 23,925 17,755 1 17,525 -349 15,957 B119 17,700 17,400 -300 NOA 4,958 Exp. Intragovernmental funds: Federal telecommunications fund Exp. 905 Total, transportation and NOA communications activities. Exp. Increase is for continued development and management of the Federal Telecommunications System and for additional transportation services. (Telecommunications services are provided to Federal agencies.) 3 H i DEFENSE MATERIALS ACTIVITIES General and special funds: Strategic and critical materials_059 NOA Exp. Public enterprise funds: Abaca fiber program 059 23 -23 -114 100 -100 23,925 17,755 1 B 119 17,823 Exp. Intragovernmental funds: Advances and reimbursements_059 Exp. Total, defense materials ac- NOA tivities. Exp. } 17,525 -349 17,400 -423 1,650 22 1,650 Exp. 1.436 Proposed for separate transmittal. civilian pay increase supplemental. 22 15,843 } Estimate provides for inventory management, storage, and disposal of strategic and critical materials, and administration of national industrial equipment reserve. O O (Liquidation of the fund will take place in 1965.) GENERAL ACTIVITIES General and special funds: Salaries and expenses, Office of Administrator _. 905 B NOA 1,466 1,518 V B 110 1,628 f Increase is primarily for additional activity in business service centers. 3 00 o o ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 1966 1965 Increase or decrease (-) id fu nctional code Explanation of NOA requests GENERAL SERVICES ADMINISTRATION—Continued GENERAL ACTIVITIES—Continued a General and special funds—Continued Allowances and office facilities NOA for former Presidents 903 Exp. 300 281 310 310 235 235 -75 -75 Account provides for 2 former Presidents and the widow of a former President. transi- NOA 903 Exp. 400 400 -400 -400 This appropriation provided financing to carry out the purpose of the Presidential Transition Act of 1963. Office of Mrs. Jacqueline Bouvier NOA Kennedy 903 Exp. 25 60 1 -25 -59 Funds previously appropriated will remain available for payment of obligations. Refunds under Renegotiation Act Exp. (interest) 905 25 25 -163 -121 Expenses tion Presidential H O 3 (Interest on remaining refunds is covered by balances of prior appropriations.) Public enterprise funds: Reconstruction Finance Corpora- Exp. tion liquidation fund 905 (Volume of receipts declines as liquidation continues.) (20,000) Exp. Working capital fund (Decrease is due mainly to establishment of a separate management fund for automatic data processing operations.) (15,736) B(722) Limitation on use of fund. 905 NOA Exp. o OS niragovernmentai tunas: Administrative operations fund_905 CO -300 -300 100 386 100 25 -361 Request provides capital to support operation of printing and reproduction facilities. Automatic data processing fund Exp. (advances and reimbursements) 905 Total, general activities Subtotal (A new fund is proposed through which funds for data processing activities will be spent and accounted for; 1966 expenditures will be offset by receipts.) NOA 1,831 Exp. 434 NOA 631,605 Exp. 592,711 2,353 B 110 2,346 1,985 -478 1,515 -831 598,805 10,101 B 3,623 611,976 A5.3J0 628,877 16,348 611,019 A 3,285 -2,982 A Less: Court facilities and furnish- NOA ings items transferred to the Ju- Exp. diciary (contra) 905 1,031 691 1,031 2,100 1.353 1,822 1,069 469 Total, General Services Ad- NOA ministration. 630,575 597,774 M0,101 B 3,623 607,252 A 5,310 B3.371 626,777 15,279 608,945 A 3,285 B 252 -3,451 Exp. 592,020 W O a HOUSING AND HOME FINANCE AGENCY OFFICE OF THE ADMINISTRATOR 3 General and special funds: Salaries and expenses 551 NOA Limitation on nonadministrative expenses. Exp. A B 15,420 (3,250) 14,838 15,725 B 660 (3,375) 15,500 17,125 (4,750) 16,000 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. 740 Increase provides additional staff in supervision and coordination activities and in the urban renewal programs. The appropriation will be consolidated with $17 million in administrative funds from other (1 .375) accounts. Nonadministrative expenses (recovered through fees) 500 provide inspection and audit of certain projects and loans. ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 enacted 1965 estimate 1966 estimate Increase or decrease ( 00 o to Explanation of NOA requests HOUSING AND HOME FINANCE AGENCY—Continued OFFICE OF THE ADMINISTRATOR— Continued 3 w General and special funds—Continued 500 500 500 500 Estimate will provide for inspection and administrative expenses to complete projects financed under the Public Works Acceleration program. 35,000 15,000 21,325 -5,000 Increase will provide expansion in comprehensive planning assistance to States, counties, small cities, and metropolitan and regional areas. 1,500 1,103 1,000 500 10,145 2,645 A3.400 4,395 Administrative expenses, public NOA works acceleration 507 Exp. 553 NOA Exp. 21,150 15,233 Urban studies and housing research NOA 551 Exp. 387 Urban planning grants 340 13,675 20,000 x 387 10 500 B J 5,095 Federal-State training programs NOA 553 Exp. A5,050 A 1,650 Fellowships for city planning and NOA urban studies 553 Exp. A515 530 30 A220 15 235 ^31,835 6,562 553 NOA 262 Contract authorization NOA Liquidation of contract authorization. Exp. 262 ll 25,000 (14,738) 5,130 (14,727) 14,000 Open-space land grants B (28,665) 18,000 (13,938) 4,000 Increase will provide for expansion of statistical series on housing markets to cover rental and existing housing, and special analytical surveys and studies on housing and urban problems. d a 3 Supplemental in 1965, covering a recently authorized program, is for matching grants to States for training (and related research) in community development skills. Increase in 1966 is for first full year of operation. The 1965 supplemental, for a recently authorized program, and the 1966 request will each provide for 2-year fellowships for graduate training in city planning and related fields. Previous authorization for grants will be used up in 1966, requiring new appropriations. Estimate will support expansion of program and higher Federal matching percentage. O5 Low-income housing demonstra- NOA tion programs 551 Contract authorization NOA Liquidation of contract authorization. Exp. 45 2 5,000 (1.228) 1,500 43 B (1.157) 803 A Urban service facilities and basic NOA community facilities grants.553 Exp. Public enterprise funds: College housing loans (authorization to spend debt receipts): 702 Permanent NOA Current :-.-—.-- N 0 A Limitation on administrative expenses. Exp. Exp. Public works planning 553 NOA Exp. Revolving fund (liquidating programs) : Limitation on administrative expenses 551 Exp. Urban renewal fund (contract NOA authorization) 553 Liquidation of contract authorization. Exp. A B 1 J K L -4,972 (2,500) 2,500 1,000 150,000 15,000 A 300,000 A (1,903) 219,334 300,000 110,000 (1,900) B (75) 229,299 43,716 14,000 3,430 2,000 7,077 (135) (110) (1,985) 265,000 (1.325) -3,564 750,000 675,000 (200,000) A (30,000) 279,776 A 30,000 235,012 1 Legislation is proposed to provide grants for basic community facilities and supporting facilities for urban service programs. Additional authority to fund 1966 commitments for loans financing student and faculty housing and related facilities is expected to be enacted in 1965. (10) 35,701 15,000 7,975 1,000 4,545 (115) -1,536 (0 S O Q Increase will fund a higher level of interest-free planning advances, financed in part by repayments and other available funds. In 1966, approvals total $25 million. (This fund liquidates assets acquired under expired programs.) 2,028 New legislative authority in 1965 will provide funds for 1966, including increased relocation payments for previously approved projects. Accelerating progress under existing contracts requires (101,000) higher payments and increased liquidating appropriation. -1,425,000 (331,000) 356,180 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Includes $16,325 thousand to carry out authorizing legislation to be proposed. Includes $5,000 thousand to carry out authorizing legislation to be proposed. Includes $31,335 thousand to carry out authorizing legislation to be proposed. Includes $5,000 thousand to carry out authorizing legislation to be proposed. 15,000 42,900 A (104,805) 150,000 (55) (Increase in administrative costs results from higher level of loan activity.) 1,689 B(4) -1,799 Estimate provides for administrative costs of the low-income housing demonstration program. Existing contract authorization will allow continuation of grants for testing and demonstration of new and improved methods of housing low-income families. (1.272) -410,000 (1,220) B (50) 41,211 (1.220) Public facility loans: Limitation on administrative expenses-_553 75 46,404 CO O CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1966 1965 Increase or Explanation of NOA requests (-) HOUSING AND HOME FINANCE AGENCY—Continued OFFICE OF THE ADMINISTRATOR— Continued W d Public enterprise funds—Continued Rehabilitation loan fund 551 NOA Exp. C o m m u n i t y disposal o p e r a - Exp. tions 552 A 35 10,180 A 976 41,800 31,620 23,928 A 799 23,751 -25 -1,749 -1,724 553 NOA 195 65,288 B 12 160,550 95,250 Exp. 195 16,190 47,940 31,750 Housing for the elderly or handi- NOA capped 551 Limitation on administrative and nonadministrative expenses. Exp. 100,000 25,000 29,092 45,365 Total, Office of the Admin- NOA istrator. 439,457 1,214,382 A 800,745 B 695 Urban mass transportation Exp. w (1,000) B(35) 569,006 663,182 32,641 A 48,779 A 3,414 314,060 150,000 -1,551,762 845,092 19,419 168,688 A (Sales of property and repayments of mortgages will exceed costs connected with selling properties at Los Alamos, N. Mex.) Increase supports first full year of facility grants and loans and -demonstration grants to improve city mass transportation systems. Budget also proposes grant appropriation of $150 million for 1967. Legislation providing alternative methods for meeting program objectives is being proposed; accordingly, no authority to support new loan commitments in 1966 is requested. (50) -25,000 (915) 1 (885) Supplemental in 1965 is for a recently authorized program of lowinterest rate loans to help homeowners and small businessmen rehabilitate properties in urban renewal areas. 1966 estimate is for remainder of authorized appropriations. a o w 3 O FEDERAL NATIONAL MORTGAGE ASSOCIATION Loans to secondary market opera- Exp. tions 551 Special assistance functions (au- NOA thorization to spend debt re- Exp. ceipts) 551 Management and liquidating func- Exp. tions 551 Total, Federal National NOA Mortgage Association. Exp. A B (The trust fund is purchasing from Treasury in 1964 and 1965 the holdings of preferred stock not currently needed as the basis for financing new mortgage purchases.) -150,000 New authority in 1965 will support in 1966 the program of belowmarket-interest-rate mortgages on rental housing for moderateincome families and support a new program of Federal Housing Administration mortgage insurance for land development for new communities. New commitments for mortgage purchases will increase by $229 million to $673 million. Expenditures increase in 1966 primarily because of nonrecurring 1965 receipts of $300 million from sale of mortgages. -42,460 -141,925 -515,080 -153,000 A 5,000 367,080 -138,359 -50,000 -305,000 -255,000 A Government mortgage liquidation fund: (Aids to private housing) _ _ _ 551 Exp. (Veterans readjustment bene- Exp. fits) 803 Limitation on administrative expenses. 42,460 -66,360 150,000 -16,400 -8,200 (8,750) (8,800) (8,600) A -346,644 -24,485 -42,970 150,000 -632,140 -525,455 A 5,000 -8,085 -34,770 (200) (No mortgage purchases from Federal Housing Administration estimated in 1966, compared to $100 million (par) in 1965. In 1966, sales are estimated of $135 million of certificates of participation in pools of mortgages previously acquired.) (This trustee account holds collections on Veterans Administration and Federal National Mortgage Association mortgages in participation pools and distributes principal and interest payments to certificate holders.) O a w -150,000 111,685 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. CO o ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued — 1964 enacted code 1965 1966 00 O Increase or Explanation of NOA requests (-) HOUSING AND HOME FINANCE AGENCY—Continued FEDERAL HOUSING ADMINISTRATION Public enterprise funds—Continued Federal Housing Administration NOA fund (permanent, indefinite authorization to spend debt receipts) 551 Limitation on administrative expenses. Limitation on nonadministrative expenses. Exp. 206,413 (9,688) (9,500) (10,450) (365) (80,850) (1,075) B(397) (76.565) (78,000) B -43,442 (1,775) -108,510 (Receipts from premiums, fees, resales of properties acquired as a result of defaults on insured mortgages, and from transfer of mortgages to Federal National Mortgage Association for consolidated administration and liquidation will continue to exceed insurance claim payments and other expenses. Mortgage insurance outstanding is estimated at $51.3 billion at close of 1965. Increased application levels, insurance-in-force, and claim activities will require increased administrative support and operating expenses.) -127,276 -18,766 200,000 14,000 231,000 17,000 15,784 B 568 (15,784) 17,210 858 Increase results from heavier workload as number of dwellings in the program grows. (142) (Increase will cover inspection of increased construction activity.) PUBLIC HOUSING ADMINISTRATION Low-rent public housing program: Annual contributions 552 NOA Administrative expenses 552 NOA Limitation on administrative expenses, expenses. imitation on no: Limitation nonadministrative expenses. 197,000 15,484 (15,484) (1,420) Exp. 149,206 A B(568) (1,420) B(20) 211,499 A 9,100 Proposed supplemental request in 1965 and increase in 1966 reflect additional new projects eligible for annual contributions and increased contributions for elderly and displaced tenants. (17,210) (1,582) 232,768 A 4,900 17,069 a Total, Public Housing Ad- NOA ministration. 212,484 Exp. 149,206 Total, Housing and Home NOA Finance Agency. Exp. 858,354 328.127 215,784 14,000 B 568 211,499 A 9,100 A 248,210 17,858 232,768 1 A 4,900 17,069 1 562,270 1-1,683,904 1,430,166 ) A 964,745 A 150,000 I B 1,263 278.676 425,072 132,825 A 29,319 Ml,741 B B 1,206 57 J NATIONAL AERONAUTICS AND SPACE ADMINISTRATION General and special funds: Research and development Construction of facilities Administrative operations A B D 251 251 251 NOA3,890,269 Exp. 3,317,389 4,363,594 3.782,000 NOA 713,346 437,752 Exp. 262,880 524,000 NOA 496,099 416.777 Exp. 623,253 593,814 D 4,575,900 4,120,000 D D 74,700 212,306 338.000 Increase is for continued development of large manned spacecraft and launch vehicles to meet the goal of achieving a manned lunar landing in this decade, initiation of programs for unmanned exploration of the surface of Mars, detailed observation of the Sun from an Earth orbiting satellite, flight research using prototype B-70 aircraft, a small laboratory model ramjet engine, and increase in supporting research. Partially offsetting decreases include normal downturn in requirements for the Gemini manned space flight program; termination of the M-l engine, large solid rocket motor, and SNAP-8 space nuclear power system development projects; and reduced rate of buildup in the worldwide tracking network. 406.000 188,180 118,000 Decrease is a result of completion of funding for major new facilities in support of the manned lunar landing program. 609,400 574.000 -13,853 -19,814 Decrease results from the one-time requirement for purchase in 1965 of automatic data processing equipment in use on a rental basis, partially offset by increases for heavier workload at NASA field centers. o o > Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. To carry out authorizing legislation to be proposed. o ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued CO 1964 enacted Account and functional code 1966 estimate 1965 estimate Increase or decrease Explanation of NOA requests o NATIONAL AERONAUTICS AND SPACE ADMINISTRATION—Continued General and special funds—Continued 251 Exp. -921 186 Total, National Aeronautics NOA and Space Administration. Exp. 5,099,714 4,170,997 5,249,727 4,900,000 Salaries and expenses -186 5,260,000 5,100,000 3 10,273 200,000 VETERANS ADMINISTRATION o 3 General and special funds: General operating expenses. _ _805 NOA Exp. 159,731 162,325 —4,870 155,125 I 158,000 A 2,809 B 4,936 157,799 { -4,040 159,160 A A 2,744 65 Supplemental in 1965 is for administering recent legislation extending war orphans' education, providing improvements in insurance programs and pension liberalization. Reduction in 1966 reflects increased productivity, declining workloads, field office reorganization, including the closing of 17 regional offices, and transfer of cost of medical data processing to "medical care" and "supply fund." 13,496 -1,400 13,501 -1,235 Increases in 1966 to strengthen administration of medical program and to develop and supervise new nursing home program are more than offset by transfer of funding Office of Construction to construction appropriation. 40,893 3,110 39,900 341 I 1 Medical administration and mis- NAO cellaneous operating expenses 804 Exp. 14,800 Medical search re- NAO 804 Exp. 33,742 _.._804 NOA 1,091,627 Exp. 1,111,451 and prosthetic Medical care 14,699 32,349 14,200 1 B 696 f 14,736 37,000 | B 783 39,559 1,115,935 11,177,417 23,258 A 8,295 B 29,929 1,137,237 1,168,000 1 22,894 A 8,082 ^213 J 1 Increase in 1966 provides for program growth consistent with 10-year planned objective. Supplemental in 1965 is for wage board costs; increased per diem rates in Federal contract hospitals; and new payments for nursing home care in State homes. The 1966 estimate reflects savings from closing 11 hospitals and 4 domiciliaries and increases to provide activation of 1,000 more nursing home beds; activation of 3 new hospitals; new types of medical services in existing facilities; increased staffing and equipment to improve quality of care; and new programs for care in private and public nursing homes and filling prescriptions for drugs. CO Compensation and pensions: (Veterans service-connected compensation) 801 NOA 2,157,600 Exp. 2,157,600 NOA 1,732,900 Exp. 1,743,106 and 805 NOA Exp. 60,500 803 NOA (Veterans non-service-connected pensions) 802 (Other veterans services) benefits 60,500 2,122,700 12,174,500 A 50,000 2,122,700 2,174,400 A50.000 A - 7 4 , 4 0 0 1,775,400 11,902,700 A 58,000 1,775,823 1,902,600 A 58,000 A - 7 5 , 6 0 0 1,800 -72,700 69,300 -6,823 -100 65,000 100 I 36,500 -9,400 I 36,500 -10,611 68,998 37,100 A 8,800 38,311 A 8,800 NOA 28,700 13,700 9,900 -3,800 NOA Exp. 652 26,819 660 22,000 685 17,600 25 -4,400 NOA 310 386 Exp. 258 310 76 310 A 76 NOA Exp. 76,796 70,325 98,103 80,000 97,006 92,500 -1,097 12,500 1,400 100 C o n s t r u c t i o n — C o r r egidor- NOA 59 Bataan Memorial 805 Exp. 900 A Proposed for separate transmittal, other than pay increase supplemental. B Proposed for separate transmittal, civilian pay increase supplemental. 1,300 841 Readjustment benefits 68,500 Exp. Veterans insurance and indemnities __„__ 805 Permanent, indefinite, special fund. Grants to the Republic of the Philippines 804 Construction of hospital and domiciliary facilities 804 Supplemental is mainly for increased pension rates. Increase is mainly for full-year cost of new legislation. (Expenditure reduction reflects proposal t o even check mailings throughout t h e month.) W 64,800 64,900 64,900 Supplemental is for higher caseload and average payments. Increase reflects continuing increase in average payments as disabilities worsen with increasing age of veterans. (Expenditure reduction reflects proposal t o even check mailings throughout t h e month.) Increased burial benefits, reflecting more deaths of older veterans, is offset by declining vocational rehabilitation caseload. Supplemental is for higher enrollment of Korean veterans in training and for newly enacted extension of W a r orphans education program t o include children of totally disabled veterans. Reduction in 1966 reflects termination of Korean education program Transfer of $7 million from t h e Veterans special term insurance fund offsets increased N O A requirements resulting from exhaustion of 1965 unobligated balances. P e r m a n e n t N O A is premium receipts on policies issued t o certain disabled veterans of World War I I . ( E x penditures decline as indemnity payments are completed.) Supplemental is for payment of increased per diem rates for t r e a t m e n t of Philippine Commonwealth Army veterans. Estimates for 1966 are for care of daily average of 157 veterans. A 386 >1 tr O o 1 Proposal for 1966 provides for t h e sixth increment of a $1.2 billion program for modernization of medical facilities; for alterations of existing facilities t o provide 2,000 nursing home beds; a n d for planning a n d construction of research facilities. Increase is for construction of t h e memorial to be started in 1966. CO CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued d fu 1964 code o 1966 1965 CO decrease (-) Explanation of NOA requests VETERANS ADMINISTRATION—Continued General and special funds—Continued 5,000 500 Grants for construction of State NOA nursing homes 804 Exp. 5,000 500 Provides for new program of grants to States to construct nursing home facilities for care of war veterans. -48 (Receipts of $54 million from canteen sales to hospital patients and staff approximately offset expenses.) -150,000 New loans decline as World War II veterans entitlement runs out. Sale of loans and unobligated balances eliminate need for borrowings from Treasury. Permanent NOA of $100 million which would otherwise become available for 1966 is proposed for cancellation. (Receipts from planned direct sales of mortgage notes and sale of participations in pooled mortgage loans more than offset expenditures. A larger volume of such sales are anticipated in 1966.) 3 3 Public enterprise funds: Canteen service revolving fund_805 Exp. Direct loan revolving fund (authorization to spend debt receipts): 803 Permanent NOA Current NOA -207 -170 150,000 150,000 -218 100,000 -100,000 -685,947 -459,778 Exp. -32,303 -226,169 Loan guaranty revolving fund_803 Exp. 76,498 48,200 Service-disabled veterans insur- Exp. ance fund 805 -712 -50 23 41 26 25 -15 A-1,226 -24,007 -22,781 Soldiers' and sailors' civil relief.803 NOA Exp. Veterans reopened insurance fund Exp. 805 -133,883 25 -182,083 (Foreclosures are expected to decline. Receipts from direct sale of mortgage loans and sale of participations in pooled mortgage loans will more than offset expenditures and will increase over 1965.) 50 (Receipts from premiums and the "insurance and indemnities" appropriation cover expenditures of $10 million, mainly death claims.) NOA for 1966 will provide additional capital for payment of claims. (New insurance programs for disabled veterans will be open for a 1 -year period starting May 1965. Receipts will exceed payments.) a I Veterans special term insurance Exp. fund 805 -15.955 Vocational rehabilitation revolv- Exp. ing fund 805 30 nongovernmental funds: Supply fund 805 Exp. 2,294 Total, Veterans Administra- NOA tion. 5,575,858 Exp. 5,478,101 -26,755 -26,900 -145 (Net receipts were lower in 1964 than are estimated for 1965 and 1966 due to payment of special dividend authorized by Public Law 87-223.) (Repayment of loans by trainees are expected to cover new loans.) -668 35 5,585,233 5,682,708 A 127,980 B 36,344 5,213,912 4,797,660 A 126,476 A-149,722 B B 1,032 35,312 703 (Fund is estimated to net near zero on volume of $165 million.) -66,849 -726,730 OTHER INDEPENDENT AGENCIES 3 ADMINISTRATIVE CONFERENCE OF THE UNITED STATES General and special funds: Salaries and expenses O Q A 908 NOA Exp. A 62 60 250 248 | A 2 188 190 Provides for establishment of a Conference to improve and develop procedures under various administrative laws. ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS Salaries and expenses A B 3 910 NOA 385 Exp. 366 395 | 15 398 B 410 405 7 Activities of bringing together representatives of Federal, State, and local governments for studies of intergovernmental cooperation will be continued. 9 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate trans mittal, civilian pay increase supplemental. 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 1966 1965 CO I—I to Increase or decrease (-) Explanation of NOA requests OTHER INDEPENDENT AGENCIES—Continued ALASKA TEMPORARY CLAIMS COMMISSION General and special funds—Continued Salaries and expenses 910 NOA Exp. -33 -4 This temporary Commission was set up to settle a dispute between the United States and Alaska concerning conveyance of property. 2,148 300 Increase covers higher overseas personnel costs, completion of the design program, and heavier maintenance requirements. 2,050 44 33 4 AMERICAN BATTLE MONUMENTS COMMISSION Salaries and expenses 805 NOA 1,800 1,800 B14 Reappropriation NOA Exp. 1,673 32 2,006 Construction of memorials and Exp. cemeteries 805 113 69 Total, American Battle Mon- NOA uments Commission. 1,800 1,832 Exp. o -69 2,148 300 2 2,075 2,050 -25 521 \,287 766 B (Account is available only to pay old obligations.) CD 1 4 C 1,786 O5 CENTRAL INTELLIGENCE AGENCY Construction 905 Exp. 285 (Major expenditures are for construction of facility designed for classified printing.) CIVIL AERONAUTICS BOARD Salaries and expenses 11,300 204 10,023 10,608 ) B 488 11,014 11,200 186 87,656 86,786 83,938 -2,848 508 NOA 10,240 Exp. Payments to air carriers: Contract authorization (perma- NOA nent, indefinite) 501 Liquidation of contract authorization. Exp. Total, Civil Aeronautics NOA Board. Exp. (83,000) 84,122 97,896 94,145 (82,500) | (4,400) 82,856 | A 4,400 A 97,394 1 B 488 93,870 | M.400 Increases are primarily to strengthen the aircraft accident investigation program. Airline subsidy obligations are expected to decline in 1966. (83,500) (-3,400) (Supplemental in 1965 is to meet additional authorized contractual payments. Appropriation for 1966 liquidates that part of subsidy contract obligations for which payments are due during the year.) 83,500 -3,756 95,238 -2,644 94,700 -3,570 22,500 -196 22,380 -308 CIVIL SERVICE COMMISSION 21,996 ) B 700 22,688 _.9O6 NOA 21,835 Exp. 22,826 Investigation of U.S. citizens for NOA employment by international Exp. organizations 908 570 518 600 546 627 617 27 71 1,800 1,723 1,650 1,674 1,550 1,570 -100 -104 29,224 29,224 29,224 29,224 Salaries and expenses _ Annuities under special acts 906 NOA Exp. Government payment for annui- NOA tants, employees health benefits Exp. 906 A B c Decrease reflects productivity increases and purchase in 1965 of computer and mechanized filing equipment. Increase in 1966 results from expanded workload. ! O Decrease results from smaller number of Panama Canal annuitants. This appropriation is a consolidation of the 2 following ones. Estimate reflects 478,000 participating annuitants. Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. CO 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 d fuiictional 1966 Increase or 00 Explanation of NOA requests (-) OTHER INDEPENDENT AGENCIES—Continued CIVIL SERVICE COMMISSION—Con. General and special funds—Continued Government payment for annui- NOA tants, employees health benefits fund 906 Exp. 9,500 9,500 10,650 1,560 10,650 A 1,560 -12,210 A -12,210 Government contribution, retired NOA employees health benefits fund Exp. 906 14,800 14,800 14,800 -14,800 14,800 -14,800 Payment to civil service retirement NOA and disability fund 906 Exp. 62,000 62,000 65,000 65,000 Trust fund: Limitation on administrative expenses, employees life insurance fund. (270) (274) 67,000 (279) 2,000 2,000 Q Estimate is to pay increased costs of additional benefits enacted in 1963. (5) (Estimate reflects increasing participation in regular insurance program.) CO OS Intragovernmental funds: Investigations (revolving fund) Exp. 906 69 Advances and reimbursements_906 Exp. -17 16 Total Civil Service Commis- NOA 110,505 Exp. 111,418 114,696 A 1,560 B700 114,944 A 1,560 67,000 These appropriations have been consolidated into the preceding one. The 1965 supplemental will provide for the Government's share of the cost of the health benefits liberalization under Public Law 88-284. -430 -108 322 -16 120,901 3,945 120,683 4,179 (This fund finances security investigations performed at the request of other agencies.) COMMISSION OF FINE ARTS General and special funds: Salaries and expenses 555 NOA Exp. 91 120 B 3 123 87 123 123 Estimate provides for additional consultant services. COMMISSION ON CIVIL RIGHTS Salaries and expenses 908 NOA 985 817 1,280 1 1,720 B 32 1,250 1,650 408 Increase provides for additional staff to carry out new functions under the Civil Rights Act of 1964. COMMISSION ON INTERNATIONAL RULES OF JUDICIAL PROCEDURE Salaries and expenses O 910 NOA Exp. A A S3 79 69 200 190 10 121 3,200 3,000 950 2,250 A 131 Commission, reestablished by Public Law 88-522, will draft international agreements to be negotiated by the Secretary of State. S O O S3 > EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Salaries and expenses 652 NOA Exp. 2,250 750 Increase reflects the costs of a full year's operation and additional duties to be performed beginning in 1966 as provided by the Civil Rights Act. EXPORT-IMPORT BANK OF WASHINGTON A B Exp. (1,314,366) (1,350.060) (3,500) (3,781) B (184) -701,784 -645,175 (4,052) 480,229 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. a 3 Public enterprise funds: Export-Import Bank of Washington fund 152 Limitation on operating expenses. Limitation on administrative expenses. M 400 (-1,350,060) (87) (Increased expenditures in 1966 reflect larger disbursements on loans and a decline in sales of assets, partially offset by an increase in net loan repayments.) 164,946 00 oo ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account an d functional code 1965 1966 Increase or Explanation of NOA requests OTHER INDEPENDENT AGENCIES—Continued FARM CREDIT ADMINISTRATION o Public enterprise funds—Continued Revolving fund for administrative Exp. expenses. .__ _ 352 -161 -111 Short-term credit investment fund Exp. 352 5,490 7,975 Banks for cooperatives investment Exp. fund 352 -13,926 -13,887 Total, Farm Credit Adminis- Exp. tration. -8,597 -6,023 -4 107 (Activity is financed by assessments collected from the banks in the farm credit system. The increase in 1966 mainly reflects the annualization of salary and related costs of staff added during 1965.) 8,175 ) -7,300 A -7,500 (Expenditures represent Government investment in Federal intermediate credit banks and production credit associations. The reduction in 1966 reflects proposed legislation changing the Federal intermediate credit banks' debt-to-capital ratio, thereby reducing the need for Government capital.) -13,500 387 -5,329 1 -6,806 FEDERAL COAL MINE SAFETY BOARD OF REVIEW Salaries and expenses 652 NOA 65 68 BO Exp. 64 I 71 ' U 70 1 Increase is primarily for within-grade salary and related costs. -1 o (Negative expenditure represents a return of capital previously invested in banks for cooperatives.) A-7,500 General and special funds: 9 CO FEDERAL COMMUNICATIONS COMMISSION Salaries and expenses 508 NOA 15,600 16,717 Exp. 16,347 | B 605 16,614 17,494 542 17,500 886 Increase provides for the processing of a greater volume of applications for all classes of radio service and for more effective regulation of common carriers. 200 170 200 106 Committees will develop and coordinate plans for the economic development of Alaska. (458) (Administrative and supervisory expenses, paid from fees, charges, and assessments, will increase because of growth in number of institutions and assets. FEDERAL DEVELOPMENT PLANNING COMMITTEES FOR ALASKA Federal Development Planning NOA Committees for Alaska 507 Exp. 64 FEDERAL HOME LOAN BANK BOARD Public enterprise funds: Federal Home Loan Bank Board revolving fund 551 Limitation on administrative and nonadministrative expenses. (15,230) Exp. Federal Savings and Loan Insurance Corporation fund 551 Limitation on administrative expenses. -324 (1.315) (16,868) | B (81) -239 (225) (17,407) 257 j (259) -248,097 - -313,019 -335,663 Home Owners' Loan Corporation Exp. fund 551 1 2 2 -248,420 — -313,256 -335,404 A B (26) B(8) Exp. Total, Federal Home Loan Bank Board. 496 Exp. o o (Premiums and other receipts are expected to increase and will continue to exceed costs.) -22,644 (Expenditures are for interest on matured bonds.) -22,148 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. OO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 CO Increase or decrease 1966 Explanation of NOA requests 00 OTHER INDEPENDENT AGENCIES—Continued FEDERAL MARITIME COMMISSION General and special funds: Salaries and expenses 508 NOA 2,575 Exp. 2,611 2,763 1 B 183 2,919 3,390 444 3,320 401 Increase is to provide for the expanding regulatory caseload. d FEDERAL MEDIATION AND CONCILIATION SERVICE Salaries and expenses Q 652 NOA 5,688 Exp. 5,702 6,100 | B 234 6,262 6,652 318 6,615 353 13,539 564 13,422 485 Increase will permit additional assistance to labor and management, particularly in preventive mediation. 8 FEDERAL POWER COMMISSION Salaries and expenses 401 NOA 11,850 Exp. 12,226 Payments to States under Federal NOA Power Act (permanent, indefi- Exp. nite, special fund) 401 124 98 12,440 | B 535 12,937 123 124 123 123 -1 Increase is mainly for wholesale rate regulation, safety inspections, water resources appraisal studies, and purchase of a computer system. States receive 37.5% of license receipts from hydroelectric projects in national forests and public lands. CO O5 Total, Federal Power Com- NOA mission. Exp. 11,9,74 12,324 12,563 1 B 535 13,061 13,662 564 13,545 484 166 161 166 161 FEDERAL RADIATION COUNCIL Salaries and expenses 903 NOA Exp. A direct appropriation is recommended to fund activities of the Council in lieu of interagency contributions. FEDERAL RECONSTRUCTION AND DEVELOPMENT PLANNING COMMISSION FOR ALASKA Salaries and expenses 507 NOA Exp. I nongovernmental funds: Advances and reimbursements.507 Exp. Total, Federal Reconstruction NOA and Development Planning Exp. Commission for Alaska. 150 53 -53 -30 26 -26 150 -30 79 -79 (Commission has completed its mission. tember 1964.) Final report was issued Sep- FEDERAL TRADE COMMISSION General and special funds: Salaries and expenses 508 NOA 12,215 Exp. 12,118 12,859 1 B 600 12,700 13,776 317 13,400 700 Increase provides for greater emphasis on industry guidance; enlarged industry analysis capability, which will make possible more effective use of agency resources; increased investigative and litigative activity with respect to mergers; and purchase of a computer. FOREIGN CLAIMS SETTLEMENT COMMISSION Salaries and expenses 151 NOA 1,420 1,650 1 B 64 1,575 Exp. 906 Payment of Philippine war damage Exp. claims 151 8,018 34,994 Total, Foreign Claims Settle- NOA ment Commission. Exp. 1,420 1,650 | B 64 36,569 B 8,924 1,950 236 1.935 360 -34,994 1,950 236 1,935 -34,634 Increase due to necessity of completing Polish Claims program, last full year of General War Claims program, and start of the Cuban program. 3 O n (Completion of program in 1965 and transfer of $24 million of unobligated balance to the Philippine education program.) Proposed for separate transmittal, civilian pay increase supplemental. OO ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 1965 Increase or 1966 CO to o Explanation of NOA requests (-) OTHER INDEPENDENT AGENCIES—Continued GENERAL ACCOUNTING OFFICE General and special funds—Continued Salaries and expenses 904 NOA Exp. 45,699 45,116 46,733 46,574 46,900 46,740 167 166 Increase is for extended audit coverage, partially offset by decreases in other employment. Battle of Lake Erie Sesquicenten- NOA nial Celebration Commis- Exp. sion 910 14 14 -14 — 14 -14 Battle of New Orleans Sesquicen- NOA tennial Celebration Commis- Exp. sion 910 25 -25 -25 Lewis and Clark Trail Com- NOA mission 910 Exp. (The Commission has completed its work.) S so 3 25 100 100 106 100 110 10 25 25 35 35 10 16 10 -9 9 25 25 (The Commission will complete its work in 1965.) £ The Commission will terminate its activities in 1966. 100 Corregidor-Bataan Memorial NOA Commission: Salaries and ex- Exp. penses 805 Franklin Delano Roosevelt Me- Exp. morial Commission 910 © a HISTORICAL AND MEMORIAL COMMISSIONS Civil War Centennial Commis- NOA sion 910 Exp. w d Increase is for research to plan memorial documentary film and locate historical places for marking. (The Commission is completing its work in 1965.) 25 The Commission is concerned with long-term conservation and recrea25 tion affecting the Lewis and Clark Trail. CO OS U S . Territorial Expansion Memorial Commission 910 Exp. 4 -4 (The Commission is concerned with the Jefferson National Expansion Memorial.) Woodrow Wilson Memorial Commission — 910 Exp. 10 -10 (The Commission is expected to complete its work from the 1963 NOA.) Total, historical and memorial commissions. NOA Exp. 100 123 164 160 -4 187 170 -\7 310 1 25 347 12 325 340 15 25,485 1 l,230 27,300 585 INDIAN CLAIMS COMMISSION Salaries and expenses 902 NOA 297 Exp. 294 NOA 24,669 Exp. 24,378 26,334 27,200 866 43 43 37 37 41 41 4 B f Increase is primarily for within-grade salary costs. m INTERSTATE COMMERCE COMMISSION Salaries and expenses 508 B Increases are for additional workload arising from growth of the regulated motor carrier industry. o o NATIONAL CAPITAL HOUSING AUTHORITY Operation and properties maintenance of 555 NOA Exp. 4 Increase results from start of program of major repairs. ($39 thousand in 1966) are deposited in general fund. Receipts NATIONAL CAPITAL PLANNING COMMISSION Salaries and expenses 555 Land acquisition, National Capital park, parkway, and playground system 555 B G NOA 650 Exp. NOA Exp. 665 ] 31 1,000 304 664 747 1,000 253 71 1,054 B 1 550 Proposed for separate transmittal, civilian pay increase supplemental. w -550 1,540 486 Estimate provides for staff to deal with increased workload, implementation of the 1985 comprehensive plan for the District of Columbia, the identification and preservation of landmarks, and planning for the redevelopment of Pennsylvania Avenue. Funds were provided in 1965 for acquisition of land needed to provide a parklike setting for the John F. Kennedy Center for the Performing Arts. to CO to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 1965 1966 Increase or Explanation of NOA requests (-) OTHER INDEPENDENT AGENCIES-Continued d NATIONAL CAPITAL PLANNING COMMISSION—Continued General and special funds—Continued Land acquisition, John F. Kennedy NOA Center for the Performing Arts Exp. 704 Total, National Capital Plan- NOA ning Commission. Exp. -2,175 -2,175 2,175 2,175 650 735 Funds were provided in 1965 for the acquisition of the site for the John F. Kennedy Center for the Performing Arts. 1,000 -2,421 2,540 -1,436 490 450 490 -45 Outlays will be slightly reduced in 1966. 1965 expenses were met from balances of prior year appropriations. 10,171 10,171 1,550 Under proposed legislation, funds will be requested for construction of a rapid transit system for the National Capital region. 3,390 1 B 31 3,976 NATIONAL CAPITAL TRANSPORTATION AGENCY Salaries and expenses 555 NOA 1,000 Exp. 495 A Land acquisition and construction NOA 555 Exp. Total, National Capital Trans- NOA portation Agency. Exp. A 1,000 982 495 1,550 490 M0,171 450 A 1,550 10,661 1,505 NATIONAL COMMISSION ON FOOD MARKETING Salaries and expenses 700 630 355 NOA Exp. 1,500 1,420 800 790 Commission started operations during 1964. Increase provides primarily for full-year funding of the Commission's activities relating to the study and appraisal of the marketing structure of the food industry. NATIONAL COMMISSION ON TECHNOLOGY, AUTOMATION, AND ECONOMIC PROGRESS w 825 National Commission on Tech- NOA nology, Automation, and Economic Progress 652 Exp. -825 550 275 The Commission will submit its final report to the President and the Congress by January 1966. -275 > NATIONAL LABOR RELATIONS BOARD Salaries and expenses 652 NOA Exp. © 22,446 22,049 25,000 | l,158 25,659 B 28,165 28,115 2,007 Estimate reflects continuing increases in unfair labor practice charges and in representation petitions. 2,456 3 O Q W NATIONAL MEDIATION BOARD Salaries and expenses 652 NOA Exp. 1,950 1,939 1,970 | B 52 2,011 2,050 28 2,040 29 530,000 405,000 109,600 80,000 Increase will permit additional mediation assistance to labor and management in the railroad and airline industries. NATIONAL SCIENCE FOUNDATION Salaries and expenses International A B Geophysical 3 703 NOA Exp. 353,188 310,433 Year Exp. 703 -8 420,400 325,000 Includes increases to provide adequate growth in overall Federal support for research in universities (by 51% increase in research grants) and to strengthen institutional science programs (by 27%) and science education (by 14%). Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. to 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 code 1965 00 1966 Explanation of NOA requests to (-) OTHER INDEPENDENT AGENCIES—Continued NATIONAL SCIENCE FOUNDATION— Continued Intragovernmental funds: Advances and reimbursements.703 Exp. -353 Total, National Science Foun- NOA dation. Exp. 353,188 310,072 420,400 325,000 530,000 405,000 109,600 80,000 a OUTDOOR RECREATION RESOURCES REVIEW COMMISSION General and special funds: Salaries and expenses s 7 405 Exp. -7 (The Commission's work has been completed.) i PARTICIPATION IN INTERSTATEFEDERAL COMMISSIONS Delaware River Basin Commission: Salaries and expenses 401 NOA t1 38 39 1 44 5 44 44 B Exp. 36 401 NOA Exp. 117 92 117 92 Total, Delaware River Basin NOA Commission. Exp. 155 153 Contribution This appropriation provides for expenses of the U.S. Commissioner, his alternate and assistant. OS OS 96 96 4 131 | B 5 140 4 136 140 4 4 The amount recommended is the Federal share (about 24%) of the distributed net annual expense budget as adopted for 1966 by the Commission. 5 5 Interstate Commission on the Po- NOA tomac River Basin: Contribu- Exp. tion 555 5 5 5 5 Total, participation in inter- NOA state-Federal commissions. Exp. 160 158 136 B 5 141 200 113 150 197 150 150 350 275 1.000 1.025 650 13,834 13.834 16,558 2,724 2.724 Funds are provided for the second of 10 annual installments to pay the retirement account for military service of railroad workers. (-50) (Numbers of beneficiaries will increase, but numbers of claims and numbers of workers covered will decrease.) -100 -155 Decrease results from management improvements. i " 145 The United States contributes $5 thousand annually for the Commission's efforts to reduce pollution. 4 4 PRESIDENT'S ADVISORY COMMITTEE ON LABOR-MANAGEMENT POLICY W President's Advisory Committee NOA on Labor-Management Pol- Exp. icy 652 No change in the level of activities is anticipated. -47 PUBLIC LAND LAW REVIEW COMMISSION Salaries and expenses 401 NOA Exp. Increase is for additional staff and for study contracts and agreements. 750 3 RAILROAD RETIREMENT BOARD Payment credits for military service NOA 659 Exp. Trust fund: Limitation on salaries and expenses. (11,065) (10.500) 16.558 1 (10.650) B(200) o RENEGOTIATION BOARD General and special funds: Salaries and expenses B _904 NOA Exp. 2,550 2.509 2,600 2.555 2,500 2.400 Proposed for separate transmittal, civilian pay increase supplemental. 00 to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 1965 1966 00 to Increase or Explanation of NOA requests (-) OTHER INDEPENDENT AGENCIES—Continued SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION Public enterprise funds: Saint Lawrence Seaway Development Corporation fund___502 Limitation on administrative expenses. w d (429) (450) j (490) B(20) Exp. 1,000 154 600 (20) (Operating costs, interest, and some additional construction will be financed from revenues of $5.7 million and borrowing of $0.6 million from the Treasury.) -400 SECURITIES AND EXCHANGE COMMISSION General and special funds: Salaries and expenses 508 NOA 13,936 Exp. 14,337 14,830 | B 612 15,200 17,400 1,958 17,000 1,800 49,500 1,632 48,500 993 7,315 -171 7,344 35 Increase provides funds for staff to handle greater volume of workload resulting from enactment of the Securities Act Amendments of 1964; for relocation of Washington, D.C., offices in commercial space; and for rental of a computer. o > SELECTIVE SERVICE SYSTEM Salaries and expenses. _ _ 059 NOA Exp. 40,483 40,936 46,484 1 1,321 C 63 47.507 B Increase reflects higher workload. from 95,000 to 125,000. Inductions will increase over 30% SMALL BUSINESS ADMINISTRATION Salaries and expenses _ 506 NOA Exp. 6,972 8,591 7,150 | B 336 7,309 Decrease reflects reduction in employment for procurement and management assistance. CD O OS Trade adjustment loan assistance NOA 506 Exp. Grants for research and manage- Exp. ment counseling 506 1,500 50 254 55 Balances of 1964 appropriation available as needed for funding program costs. 50 -254 Public enterprise funds: 506 NOA 90,000 Exp. 124,316 45,000 100,000 235,400 Advances and reimbursements.506 Exp. -30 3 Revolving fund Intragovernmental funds: Total, Small Business Ad- NOA ministration. Exp. 98,472 132,933 A 150,000 1-132,000 -137,000 148,100 1-437,300 A -350,000 A -10 Supplemental in 1965 is for additional capital to fund increased business and disaster loan commitments. Proposed legislation to authorize sale of participations in pools of loans held by SBA will reduce NOA needed to fund 1966 program levels. -13 H O H > 52,150 1 157,315 1-132,171 A 100,000 |A-137,000 B336 243,016 155,484 1-437,532 A -350,000 o o w > SMITHSONIAN INSTITUTION General and special funds: Salaries and expenses _704 NOA Exp. 13,191 12,888 15,000 | A 90 B 400 14,790 A 87 Archeological research and excava- NOA tion (special foreign currency Exp. program) 704 Remodeling of Civil Service Com- NOA mission Building 704 Exp. A B c 5,465 116 1,000 2,183 20,865 5,375 19,717 1 A3 4,843 1,300 1,171 1,300 1,171 The estimate provides for a program of grants of excess foreign currencies to American institutions for archeological research overseas. 3,700 -1,000 1,517 The building is being remodeled for use as an art gallery which is scheduled to open in 1967. Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. Supplemental in 1965 is for wage-board pay increases. Increase in 1966 provides for staffing the west wing of the Natural History Building and other recently completed facilities, preparation of plans for utilizing the former Civil Service Commission Building as an art gallery, and broadened scientific effort. w > o o 00 to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted Account and functional code 1965 estimate 1966 Increase or decrease 00 to 00 Explanation of NOA requests OTHER INDEPENDENT AGENCIES—Continued 3 SMITHSONIAN INSTITUTION—Con. General and special funds—Continued Construction and improvements, NOA National Zoological Park_._704 Exp. 1,275 1,026 1,525 1,899 National Air and Space Mu- NOA seum __704 Exp. 511 330 1,364 1,363 Restoration and renovation of NOA buildings 704 Exp. 1,539 1,592 14 -307 180 -1,364 -1,183 2,248 1,349 2,248 1,349 Provides for construction of a veterinary hospital, research laboratory, greenhouse, mechanical quarters, property and supply facilities, and for planning of future facilities. (Planning will be completed in 1965 for a National Air and Space Museum Building.) The Smithsonian Building will be renovated inside to provide air conditioning and additional office space. Museum of History and Tech- Exp. nology 704 2,574 1,783 375 -1,408 (The building was completed in 1964.) Additions to the Natural History Exp. Building 704 2,783 6,170 307 -5,863 (Construction of the west wing is to be completed in 1966.) Salaries and expenses, National NOA Gallery of Art. 704 2,176 2,147 A12 B 60 2,396 I A12 2,465 246 2,466 58 Exp. John F. Kennedy Center for the NOA Performing Arts 704 Authorization to spend debt NOA receipts. Exp. 2,076 -15,500 15,500 15,400 1,666 5,666 4,666 d The estimate provides for the opening of galleries to house the Chester Dale collection, evening visiting hours from April through August, and workload increases. It is anticipated that planning will be completed in 1965, and construction started in 1966. CO o > CO OS Intragovernmental funds: -2 40 -30 -70 Total, Smithsonian Institu- NOA tion. 38,018 28,417 -8,681 Exp. 21,791 36,536 A 102 B 460 31,624 Advances and reimbursements, Exp. Smithsonian Institution 704 A 35,827 I 4,107 A 9 9 3 SUBVERSIVE ACTIVITIES CONTROL BOARD 1 w General and special funds: Salaries and expenses 908 NOA Exp. 425 348 440 480 480 40 3,505 160 3,480 155 2,190 7 2,170 -2 435 Increase willfinanceprinting of an index digest of Board decisions. 45 TARIFF COMMISSION Salaries and expenses 151 NOA Exp. 3,145 2.932 3,250 1 B 95 3,325 Increase anticipates larger number of public investigations and work on Summaries of Tariff Information. o a TAX COURT OF THE UNITED STATES Salaries and expenses 904 NOA Exp. 1,890 1,928 1,960 1 B 223 2,172 I Increase will provide primarily for additional costs of stenographic reporting services. 3 TENNESSEE VALLEY AUTHORITY O Public enterprise funds: Tennessee Valley Authority fund: Power proceeds and borrow- Exp. ings. 401 A B 12.291 7,000 -9,000 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. -16,000 (Power revenues of $320 million, together with a net of $50 million from revenue bonds and the U.S. Treasury, will be used to finance power operations and a $117 million investment in power system facilities, including construction on a 1,130,000-kilowatt power unit. Payment to the general fund will include $15 million for reduction of investment and a dividend of $42.2 million. Returns to the general fund and revenue bond proceeds do not affect net expenditures.) GO to CO 00 00 o ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account arid fui 1964 code 1966 1965 Increase or Explanation of NOA requests (-) OTHER INDEPENDENT AGENCIES—Continued TENNESSEE VALLEY AUTHORITY— Continued Public enterprise funds—Continued Appropriations and nonpower NOA proceeds. 401 Exp. Total, Tennessee Valley Au- NOA thority. Exp. 47,142 47,000 47,142 59,291 47,915 50,000 58,952 48.000 47,915 57,000 58,952 39,000 11,037 -2,000 An appropriation of $59 million and $24 million of other receipts will finance all operating costs except power operations and provide $42.7 million for construction of navigation, chemical, and other nonpower facilities. Increases are principally for added capital outlay, including second year of construction and land acquisition for the Land Between the Lakes recreation demonstration and initiation of the Tellico Dam and Reservoir. 3 CO 2 11,037 -18,000 UNITED STATES ARMS CONTROL AND DISARMAMENT AGENCY CO General and special funds: Arms control and disarmament NOA activities 151 Exp. Oi 7,500 6,195 9,000 9,700 153 NOA 133,954 Exp. 130,578 137,800 B 2,454 133,776 E 12,272 9,700 3,272 Increase will allow for improved in-house research capability and for additional contract research. 141,111 857 Level program will be maintained, with increases only to cover built-in costs. 136,923 3,147 UNITED STATES INFORMATION AGENCY Salaries and expenses Salaries and expenses (special NOA foreign currency program). _ 153 Exp. 8,200 10,400 11,750 10,042 6,000 1 11,700 7,415 M06 11,112 11,033 2,912 633 Foreign currencies excess to U.S. needs supplement the appropriation immediately above and are used to pay local expenses. Special international exhibitions NOA 153 Exp. 7,200 Special international exhibitions NOA (special foreign currency pro- Exp. gram) 153 450 371 400 485 154 245 -246 -240 Foreign currencies excess to U.S. needs supplement the appropriation immediately above and are used to pay local expenses. 12,070 12,157 2,000 10,314 16,601 8,490 14,601 -1,824 Increases will complete new shortwave transmitting facility in the Far East ($12.7 million) and repair and modernize one in North Africa. 750 940 1,146 296 142 296 -1,004 Increase is to provide payment of 1965 and 1966 interest accruing to Treasury. Acquisition and construction of NOA radio facilities 153 Exp. A 7,021 3,975 A -13,725 3,293 1,300 j -3,228 Decreases are due to nonrecurring supplemental in 1965 to finance U.S. participation in 1967 Montreal World's Fair, and to reduction in USIA trade fair program. Public enterprise funds: Informational fund media guarantee NOA 153 Exp. Total United States Infor- NOA mation Agency. 166,174 Exp. 161,109 154,400 1 173,249 4,695 ll,700 B 2,454 163,536 160,126 | -2,516 A M06 1,300 A o o UNITED STATES-PUERTO RICO COMMISSION ON THE STATUS OF PUERTO RICO a General and special funds: Salaries and expenses 250 115 910 NOA Exp. 135 -250 20 Full appropriation for the Commission was made in 1965. Commission will report January 1966. U.S. STUDY COMMISSION—SOUTHEAST RIVER BASINS Salaries and expenses A B E 401 Exp. 165 Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Partly to carry out authorizing legislation to be proposed. (The Commission ceased to exist on Dec. 23, 1963.) 00 00 00 CO to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 enacted 1965 1966 Increase or decrease (-) Explanation of NOA requests OTHER INDEPENDENT AGENCIES—Continued U.S. STUDY COMMISSION—TEXAS W General and special funds—Continued Salaries and expenses 401 Exp. Total, other agencies. (The Commission ceased to exist on Aug. 28, 1962.) independent NOA 1,131,485 Exp. 159,177 1,179,649 M13,503 B 11,478 C 65 350,181 A 6,594 B 10,991 1,443,138 1 -126,829 A A 11,614 466,714 -255,265 -354,635 B 487 g DISTRICT OF COLUMBIA General and special funds: Federal payment to District of NOA Columbia __ 555 Exp. Loans to District of Columbia for NOA capital outlay, general fund 555 Exp. CD 40,720 A 2,217 40,720 A 2,217 20,000 27,000 17,598 Amount of $50 million is to help defray expenses of the government of the District and $3.5 million is for water and sewer services to the Federal Government. Supplemental in 1965 will be submitted for additional Federal payment within the $50 million authorization for 1965. Supplemental in 1966 is for proposed legislation to base the payment on a formula reflecting impact of the Federal Government. 26,000 1 11,700 5,700 25,000 -2,000 Loans are 30-year-interest-bearing, to assist in constructing facilities. Supplemental in 1966 is for proposed legislation to provide for contribution to mass transit system. 53,535 1 A 7,000 53.535 1 A 7,000 A 17,598 os Loans to District of Columbia for NOA capital outlay, highway fund 555 Exp. 1,400 3,912 2,700 5,250 A 2,100 5,212 A 8,000 -650 Loans are 30-year-interest-bearing, to assist highway construction. Supplemental in 1966 is planned under proposed legislation increasing loan authority by $35 million. Loans to District of Columbia for Exp. capital outlay, water fund__555 850 3,000 2,000 -1,000 (Loans are 30-year-interest-bearing, to assist water system construction.) Loans to District of Columbia for NOA capital outlay, sanitary sewage Exp. works fund 555 8,000 3,825 5,000 10,000 6,000 -5,000 -4,000 Loans are 30-year-interest-bearing, to assist construction of separate storm drainage and sanitary sewers. Federal contribution and loans to Exp. the Metropolitan area sanitary sewage works fund 555 4,775 1,500 1,900 400 Repayable advances to the District NOA of Columbia general fund (per- Exp. manent, indefinite) 555 33,000 7,000 8,000 -17,000 -8,000 17,000 Temporary advances are made to avoid sale of investments, with later repayments. No advance is contemplated in 1966. Advances to stadium sinking fund, NOA Armory Board (permanent, in- Exp. definite, authorization to spend debt receipts) 555 656 656 832 832 -832 -832 Advances are made to meet interest payments on bonds which cannot be met from receipts. Total, District of Columbia.. NOA 93,324 Exp. 57,474 75,952 2,217 74,052 A 2,217 A A o o w 83,447 15,400 93,685 A 9,100 o A B c Proposed for separate transmittal, other than pay increase supplemental. Proposed for separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. OO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 1966 Increase or decrease (-) CO CO Explanation of NOA requests SPECIAL ALLOWANCES Allowance for Appalachia. Allowance for contingencies. Total allowances. A NOA Exp. A NOA Exp. A A NOA Exp. A 365,000 A 3,000 150,000 100,000 515,000 103,000 107,000 -365,000 104,000 Legislation is proposed for early enactment to authorize a coordinated Federal-State-local program to develop the resources of the Appalachian region and to promote better employment opportunities for its people. 650,000 400,000 500,000 300,000 The allowance for contingencies is to cover unforeseen needs and smaller items of proposed legislation. Specific supplemental estimates will be transmitted as the need arises. 650,000 507,000 135,000 404,000 A A A A A GRAND TOTALS-ADMINISTRATIVE BUDGET Total new obligational authority- Expenditures: Subtotal. 101,102,682 101,284,257 A 5,369,919 B 507,290 c 100,770 103,211,474 A 3,205,343 -845,419 98,347,996 96,854,222 A 869,588 B492,162 C98J69 99,353,885 A 914,129 B 16,300 C2.601 1,972,774 Interfund transactions. _ -663,622 -832,769 -599,555 233,214 Total expenditures. 97,684,375 97,481,372 99,687,360 2,205,988 OS OS TRUST FUNDS LEGISLATIVE BRANCH Library of Congress: Gift and trust NOA fund income accounts 704 Exp. 2,011 1,644 1,785 1,720 1,780 1,755 o 35 Income of the gift fund and other gifts and receipts are devoted to ad vancing the work of the, Library. 721 490 860 484 890 498 30 14 Pays annuities to dependents of deceased judges, refunds to former judges and claims of survivors in certain cases. THE JUDICIARY Judicial survivors annuity fund _ _ 654 NOA Exp. FUNDS APPROPRIATED TO THE PRESIDENT Mutual Defense and Development Military assistance: Military assistance advances __ 05 7 Contract authorization, NOA Receipts to liquidate contract authorization. Exp. 1,148,629 1,045,400 1,139,300 (719,701) (689,787) (977,353) 805,147 480,751 976,006 93,900 This program covers sales of defense articles and services to eligible (287,566) foreign countries and international organizations. (170,859) Economic assistance: Agency for International Develop- NOA ment trust funds 150 Exp. 769 2,023 1,000 2,085 1,000 2,000 -85 Total mutual defense and NOA development. Exp. 1,149,398 482,774 1,046,400 807,232 1,140,300 978,006 93,900 170,774 Peace Corps gifts and donations. 152 NOA Exp. 164 152 250 253 255 255 5 2 Total, funds appropriated to NOA the President. Exp. 1,149,562 482,926 1,046,650 807,485 1,140,555 978,261 93,905 170,776 A B c Proposed for separate transmittal, other than pay increase supplemental. Proposed or separate transmittal, civilian pay increase supplemental. Proposed for separate transmittal, military pay increase supplemental. These funds are advances by foreign governments to pay for local costs oi development grant and other mutually agreed upon programs. o a w Gifts and donations from foreign governments help support the loca program. GO CO Ox CO CO o ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 1966 Explanation of NOA requests ' (-) TRUST FUNDS—Continued DEPARTMENT OF AGRICULTURE Miscellaneous trust funds _ _ 351 Exp. 354 NOA Exp. 355 NOA Exp. 45 681 599 27,577 27,267 798 790 29,730 29,544 850 840 29,7271 *7,546f 30,0341 A7,229[ Farmers Home Administration Exp. (trust revolving fund) 352 717 -3,483 -2,748 Forest Service: Cooperative work NOA 402 Exp. 27,460 22,987 28,000 23,200 29,000 27,500 Total, Department of Agri- NOA culture. Exp. 55,718 58,528 51,571 50,0% 59,577 7,546 55,626 A7.229 A -45 (Receipts, mostly from States and local organizations, are used in work under cooperative agreements with Agricultural Stabilization and Conservation Service.) 52 Receipts, mostly from States and local organizations, are used in work under cooperative agreements with Soil Conservation Service. 50 7,543 7,719 735 Fees are used for inspection and grading services of Agricultural Marketing Service and Agricultural Research Service, relieving general revenues of this expense. Other receipts are used under cooperative agreements. Legislation is proposed to place special benefit services related to cotton classing and inspection of grain and tobacco on a selfsupporting basis. (Funds of 39 States are administered in insured loan programs within those States.) 1,000 Advances from others are used in cooperative work, such as reforestation, in forests and on land adjacent to forests. 4,300 8,595 12,759 o s o OS a DEPARTMENT OF COMMERCE Bureau of Public Roads highway trust fund: 503 Contract authorization: NOA Current NOA 3,705,000 Permanent NOA 500 Current appropriation Receipts to liquidate contract authorization and finance current appropriation: (Excise taxes): (3,519,156) (Existing legislation) (Proposed legislation) (Interest on general fund advances). (20,361) (Interest on investments). Exp. 3,645,013 Bureau of Public Roads international trust funds: 152 NOA Contract authorization NOA Current appropriation Receipts to liquidate contract authorization and finance cur- Exp. rent appropriation. Miscellaneous trust funds, Bureau of Public Roads: 503 Contract authorization NOA Current appropriation NOA Receipts to liquidate contract authorization and finance current Exp. appropriation. A 216 298 (4,868) 5,626 563 360 (799) 1,645 1,000,000 2,830,000 100,000 3,930,000 Contract authorization granted by Congress is explained in non-add entry under administrative budget items for Commerce above. Receipts of the fund liquidate portions of the contract authorization. Proposed legislation will increase certain taxes dedicated to the trust fund. Expenditures are mainly in the form of grants to the States, but also include outlays for administration and research ($52.6 million in 1966). w (3,639,000) (3,759,000) 1(320,000) A (200,000) (-6,000) (-6,000) (10,000) (1,000) (-9,000) 3,851,013 13,875,000 -226,013 A 250,000 -11,774 18,752 (2,090) 11,335 6,978 11,180 3 Advances from other countries are used for cooperative work and technical assistance. (-2,090) -155 O Q W SI 400 500 OJ24) 2,555 900 900 Advances from other Federal agencies, States, local governments, and nongovernmental interests are used for special services requested by those who pay. (-1.124) -1,655 Proposed for separate transmittal, other than pay increase supplemental. 00 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 1965 1966 CO CO Increase or Explanation of NOA requests 00 TRUST FUNDS—Continued DEPARTMENT OF COMMERCE-Con. Other miscellaneous trust funds. .506 NOA Exp. 4,010 3,588 502 NOA Exp. 22,718 14,446 3,733,664 3,670,316 Total, Department of Com- NOA merce. Exp. 3,911 4,038 4,013 4,035 102 -3 Gifts, donations, advances from individuals and firms, proceeds from sale of documents, and bond sale receipts held in escrow are used to finance projects and activities to which the receipts are dedicated. 34,238 22,059 12,179 3,097 21,566 18,469 3,865,341 3,976,129 110,788 3,887,409 [3,912,681 -224,728 A 250,000 o s o Ed DEPARTMENT OF DEFENSEMILITARY 3 QO Miscellaneous trust funds 051 NOA Exp. 5,178 5,149 5,212 5,077 5,129 5,110 -83 33 Receipts include gifts, donations, and bequests used for specified purposes. Funds also include ships' stores profits used for benefit of naval personnel, and the U.S.S. Arizona memorial fund. 36,642 36,873 21,940 31,000 22,513 23,000 573 -8,000 Advances and contributions from local interests are used in construction and maintenance work. Unused balances are returned. 805 NOA NOA Exp. 6,662 2 7,269 7,048 2 7,122 7,076 2 7,082 28 Receipts include fines, forfeitures, and pay stoppages of Army and Air Force enlisted personnel. Receipts unappropriated are (in thousands): 1964, $2,692; 1965, $1,125; 1966, $497. Refunds are permanently authorized. U.S. Soldiers' Home, trust revolving Exp. fund 805 6 Total, Department of De- NOA fense—Civil. Exp. 43,305 44,148 DEPARTMENT OF DEFENSE-CIVIL Corps of Engineers advances and NOA contributed funds 401 Exp. U.S. Soldiers' Home: Current appropriation Permanent appropriation -40 (Fund finances certain supply inventories of the home.) 28,990 38,122 29,591 30,082 601 -8,040 o DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE Federal old-age and survivors insur- NOA (16,044,374) (16,189,440) (17,552,554) (1,363,114) ance trust fund 654 Receipts appropriated: (Employment taxes): 14,336,127 14,397,000 15,887,000 1 1,158,000 (Existing legislation) A -332,000 (Proposed legislation) 1,166,599 1,223,000 1,341,000 118,000 (Deposits by States) 600,454 541,552 569,340 31,114 (Interest on investments) 100 96 100 (Other) A 56,000 56,000 (Proposed legislation: Receipts for military service credits.) Expenditures: Exp. (15,284,607) (15,966,180) (18,628,818) (2,662,638) (Benefit payments): 14,579,166 15,253,000 16,030,000 12,635,000 (Existing legislation) A l,858,000 I (Proposed legislation) * 329,818 16,038 302,805 313,780 (Administrative expenses and construction.) 11.600 411,000 402,636 399,400 (Payment to Railroad Retirement Board.) Disability insurance trust fund __ 654 NOA (1,210,821) (1,222,065) Receipts appropriated: (Employment taxes) : 1,056,856 1,067,000 (Existing legislation) (Proposed legislation) 86,305 91,000 (Deposits by States) 67,660 64,065 (Interest on investments) (Proposed legislation: Receipts for military service credit.) Expenditures Exp (1,340,545) (1,517,973) (Benefit payments) : 1,251,207 1,416,000 (Existing legislation) (Proposed legislation) * 70,199 82,173 (Administrative expenses) 19,139 19,800 (Payment to Railroad Retirement Account.) (1,455,293) w t"1 o o (233,228) 1964 actual 1,105,000 1 232,000 A 194,000 95,000 4,000 57,293 -6,772 M,000 4,000 Retired individuals » 13,077 Disabled dependents 168 Survivors 2 . 4,709 Disabled workers and their dependents 1,516 1 (1,748,446) (230,473) 2 1965 estimate 1966 estimate 13,698 184 4,955 14,198 200 5.174 1,641 1,729 o Includes wives under retirement age who have children in their care. Includes children of retired workers. 1,485,000 1 224,000 A 155,000 88,346 6,173 20,100 300 A Proposed for separate transmittal, other than pay increase supplemental. "Includes administrative expenses. The social security program provides insurance against income loss due to death, retirement, or disability. Increased tax receipts to the oldage and survivors trust fund under existing law are due to a scheduled increase in tax rates effective in January 1966, and an anticipated increase in average earnings. The latter increase affects receipts to the disability insurance trust fund. Proposed changes in existing law will increase the annual covered wage base from $4,800 to $5,600, but provide for a somewhat smaller increase in the tax rate allocated for the OASI portion, thus decreasing receipts to the old-age and survivors trust fund duringfiscalyear 1966. The tax rate for the disability trust fund will be increased slightly. Proposed expenditure increases relate to a proposed 7% increase in cash benefits paid by both funds retroactive to Jan. 1, 1965. In addition, receipts of the old-age and survivors and disability insurance trust funds are increased to reflect proposed legislation providing reimbursements for increased expenses due to military service credits. The number receiving monthly benefits under existing law at the end of eachfiscalyear are estimated as follows (in thousands): 00 00 CO 00 o ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 Increase or 1966 1965 Explanation of NOA requests TRUST FUNDS—Continued DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Con. Hospital insurance trust fund (proposed) . 654 Receipts appropriated NOA Expenditures Exp. Miscellaneous trust funds 600,000 20,000 600,000 20,000 A separate hospital insurance trust fund is proposed to be financed from a new payroll tax to begin on Jan. 1, 1966. Expenditures relate to program tooling up costs as benefit payments do not begin until July 1, 1966. The total combined employer and employee payroll tax, recommended under all proposed legislation for this and the 2 preceding accounts, is 8.5% on the first $5,600 of annual wages, effective Jan. 1,1966. 145 -189 Gifts and contributions are expended for specified purposes, or are used to further the work of the Public Health Service. A 651 NOA Exp. 864 824 302 603 447 414 653 NOA Exp. 3 3 3 3 3 659 Exp. 9 Total, Department of Health, NOA Education, and Welfare. Exp. A 17,256,062 17,411,810 19,086,297 12,196,487 A 522,000 16,625,985 17,484,759 18,364,681 12,912,922 A 2,033,000 Gifts received for refugee assistance are used for that purpose. W O O DEPARTMENT OF THE INTERIOR NOA Exp. NOA Exp. 9:1,349 6(S.093 11,830 ,683 94,208 68.040 1,517 2.125 81,087 104.008 1,195 1,589 -13,121 35.968 -322 -536 Certain funds of Indian tribes are maintained in trust and administered by the Secretary for their benefit. Non-Federal advances are deposited for shared land management activities and for construction of power and reclamation facilities. 403 NOA Exp. 1,130 ,436 1,300 1.300 1,350 1.340 50 40 States, counties, municipalities, and private sources contribute funds for minerals and mining research. 404 NOA Exp. ,596 ,554 1,581 1,610 1,647 1,651 66 41 Contributions and receipts are used for fishery products inspection, sea lamprey control, and other work of the Fish and Wildlife Service. NOA Exp. ,329 .706 15,778 4,800 15,778 10,777 5.977 Donations are mainly used for specified purposes of the National Park Service. NOA Exp. i 1,949 1,502 4,760 4,909 4,760 4,827 -82 Certain revenues from Indian reservations, agencies, and schools are used for support of schools and agency functions. NOA Exp. 104,183 76.975 119,144 82,784 105,817 124,192 -13,327 41,408 Alien property fund, trust revolving funds 151 Exp. 52,784 -124,233 171,363 295,596 Federal prisons system trust revolving fund 908 Exp. 11 Total, Department of Justice. Exp. 52,795 Indian tribal funds 409 Miscellaneous trust funds 401 405 409 Total, Department of the Interior. L O O S3 I DEPARTMENT OF JUSTICE A 171,363 Proposed for separate transmittal, other than pay increase supplemental. (Seized property of enemy nations of World War II or their nationals is being liquidated and used for payment of claims and settlements.) (Profits from sales of sundries in prison commissaries are used for the benefit of prison inmates.) -124,233 295,596 4 td 2 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued Account and functional code 1964 1965 1966 CO to Increase or Explanation of NOA requests (-) TRUST FUNDS—Continued 9 DEPARTMENT OF LABOR Unemployment trust fund 654 NOA Receipts appropriated: (Deposits by States) 654 (Federal unemployment taxes): 652 654 (Receipts from the Treasury for youth services) 652 (Railroad unemployment insurance taxes) 654 (Railroad unemployment insurance other) 654 (Advance from revolving fund)_____ 652 (Interest on investments) ...652 (Advances for temporary unemployment compensation. _ 654 (Advances for temporary extended unemployment compensation) 654 Expenditures: Exp. (Withdrawals by States) __654 (Railroad unemployment benents)-_____ 654 (Administrative expenses)..652 654 (Temporary extended unemployment compensation benefits) 654 (4,291,775) (4,010,264) (3,981,687) (-28,577) The fund combines financial activities of the Federal-State and railroad unemployment systems. Payroll taxes of employers are the principal source of receipts. States and the Railroad Retirement Board draw 3,042,408 2,950,000 2,900,000 -50,000 upon the funds to pay weekly benefits to unemployed eligibles, in 503,164 518,150 793,400 14,986 addition to sickness benefits paid by the Railroad Retirement Board through this fund. Receipts include repayments of advances to 200 200 8,242 States for temporary programs which extend the duration of unem39,280 39,280 ployment benefits. The amounts shown for these repayments include estimated and actual repayments through the trust fund and 150,000 144,087 150,000 exclude direct payments by States to the U.S. Treasury. The increases are more than offset by decreases in deposits by States and 60,000 60,000 47,157 scheduled repayments of Advances for temporary extended unemployment compensation. -4,500 212,608 48,372 244,200 102,700 266,057 48,000 W W Q GO i 21,857 -54,700 CO (3,706,564) (3,335,921) (3,345,251) 2,703,275 2,577,000 2,550.000 128,000 121,000 133,912 425,536 9,070 -2,305 435,579 8,200 -463 526,442 7,703 (9,330) (The number of benefit payments made during 1964 (in thousands) was 72,350; the estimate for 1965 is 67,884, and for 1966, 63,200.) -27,000 -7,000 90,863 -500 463 The increase in administrative costs reflects higher wages paid to State personnel, expanded general employment services, and intensified counseling and other services provided youths by the employment service. These costs are partially offset by lower workloads in the unemployment insurance service. o (Repayment of advances for temporary extended benefits) 654 (Repayment of advances for temporary unemployment compensation) 654 (Other) 654 Bureau of Employees' Compensation NOA trust funds 906 Exp. Miscellaneous trust funds 652 NOA Exp. Total, Department of Labor. NOA Exp. -14 325,402 14 48,372 102,700 48,000 -54,700 63,302 84,891 92,109 7,218 34 102 31 115 29 104 -2 -11 67 35 54 56 35 35 —19 -19 4,291,877 3,706,701 4,010,349 3,336,092 3,981,751 3,345,390 -28,598 9,298 Receipts are from employers on the deaths of employees without eligible survivors, and from fines and penalties. Payments include certain permanent disability cases and rehabilitation maintenance benefits. B Includes advances from others for labor statistics studies. -21 DEPARTMENT OF STATE Foreign Service retirement and dis- NOA ability fund.... 654 Receipts appropriated: (Employees' contribution) (Employer's contribution) (Interest on investments) Expenditures Exp. Miscellaneous trust funds. (9,343) (9,763) (420) A retirement and disability system for Foreign Service officers and most Foreign Service staff officers and employees is maintained. Employing agencies match employee payments of 6}j% of basic salaries. Approximately 1,412 annuitants will be receiving benefits at the end of 1966. Fund balances are invested in interest-bearing U.S. securities. 3,826 3,308 1,507 7,486 4,197 3,646 1,500 8,380 4,431 3,782 1,550 9,375 234 136 50 995 NOA Exp. 48 15 121 159 12 14 -109 -145 A nonrecurring claim increases 1965 NOA and expenditures above normal levels. 152 NOA Exp. 238 267 229 252 229 254 2 Advances from foreign governments for training and other services will continue at about the same level. 153 NOA Exp. 51 18 21 21 21 21 8,979 7,786 9,714 8,812 10,025 9,664 _ 151 Total, Department of State.. (8,641) NOA Exp. These funds, from gifts, are for educational exchange. 311 852 £0 > 3 O CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 Account and functional code Increase or 1966 Explanation of NOA requests (-) TRUST FUNDS—Continued W d TREASURY DEPARTMENT National defense conditional gift NOA fund 059 Exp. Foreign claims fund a o 5 5 NOA and expenditures in 1965 and 1966 are principally for the Polish claims fund. 151 NOA Exp. 8,015 457 2,000 1,200 2,000 Coast Guard general gift fund___502 NOA Exp. 36 36 25 25 20 20 904 NOA Exp. 17,809 17,993 18,382 18,703 19,476 19,462 1,094 759 Total, Treasury Department. NOA Exp. 25,864 18,492 20,407 19,928 21,496 20,682 1,089 754 Miscellaneous trust fund _ _ 1,200 -5 -5 Decrease reflects completion of the restoration of the chapel at Groton, Conn. Increase is principally estimated work volume and increased salary costs for Customs activities in Puerto Rico and Virgin Islands. CD OS OS ATOMIC ENERGY COMMISSION Advances for non-Federal projects. _ NOA 058 Exp. 629 638 1,103 1,242 492 492 -611 -750 Advances from the Washington Public Power Supply System are for work related to construction of electric facilities at Richland, Wash. FEDERAL AVIATION AGENCY Miscellaneous trust funds _ Exp. 3 o > 36 (State, local, and private advances for air navigation facilities, in prior years, are used as intended.) GENERAL SERVICES ADMINISTRATION Advances for construction services (receipts to liquidate contract authorization) 905 Exp. National Archives gift fund 905 NOA Exp. Advances and reimbursements 905 Exp. National Archives (trust revolving Exp. fund) 905 Total, General Services Administration NOA Exp. (258) 292 (-82) -82 (82) 82 25 2,035 71 300 20 53 40 300 -1,995 (Receipts from FDIC are for liquidating expenses incident to construction of a building in Washington.) Grants from foundations are used for historical research. -53 (Expenditures incident to construction of Potomac Interceptor Sewer.) -58 -49 (Microfilm and reproduction service and admission fees to Presidential libraries are used for operations.) -19 -9 25 364 2,035 426 40 242 -1,995 -184 62,037 -37,392 111,194 48,000 162,000 178,200 50,806 130,200 2 HOUSING AND HOME FINANCE AGENCY Federal National Mortgage Association, secondary market operations, trust revolving fund (authorization to expend corporate debt receipts) 551 NOA Exp. 3 Mortgage purchases of $580 million will include $80 million acquired from the Federal Housing Administration in exchange for U.S. securities; receipts will include sales of $195 million (par) of mortgages. Private equity of $135 million will exceed Government equity of $100 million at year-end, primarily because of trust fund purchase of Treasury preferred stock in 1964 and 1965. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION Miscellaneous trust funds 251 NOA Exp. w O o j 3 201 98 1 90 1 17 -73 Gifts and donations as well as advances from foreign governments are used for purchase of materials and services. CO GO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 Increase or 1966 3 Explanation of NOA requests TRUST FUNDS—Continued VETERANS ADMINISTRATION Life insurance funds 805 Receipts appropriated: (Premiums and other operating receipts.) (Payments from general and special funds.) (Interest on investments) Expenditures Miscellaneous trust funds (-765) The national service (World War II) and U.S. Government (World NOA (710,867) (712,563) (711,798) NOA 494,105 493,908 491,358 -2,550 NOA 5,827 6,080 6,078 -2 NOA Exp. 210,935 657,471 212,575 631,998 805 NOA Exp. 1,870 1,655 1,870 1,840 Total, Veterans Administra- NOA tion. Exp. 712,737 659,126 714,433 633,838 5 8 3 1,787 214,362 502,227 -129,772 1,873 4,446 3 2,606 War I) life insurance funds will cover 5 million policies, $32.4 billion of insurance in force at end of 1966. Premium receipts and interest earned thereon are available for the payment of liabilities. The decrease in expenditures results from the acceleration of dividends into 1964 and 1965. Fund balances are in U.S. securities; assets exceeded actuarial liabilities by $94.6 million on June 30, 1964. Increase in expenditures in 1966 is due to the proposed payment to "Compensation and pensions" of the balance of the adjusted service certificate fund. NOA is mainly receipts of the general post trust fund, used for the welfare of veterans at homes and hospitals. -762 713,671 506,673 -127,165 OTHER INDEPENDENT AGENCIES American Battle Monuments Com- NOA mission contributed fund 805 Exp. 3 3 3 Contributions for flowers and for repair of non-Federal war memorials are used as intended. P CO o Civil Service Commission: Civil service retirement and disability fund 654 Receipts appropriated: (Employing agency contributions). (Deductions from salaries) (Voluntary contributions, etc.) _ (Interest on investments) Expenditures NOA (2,456,257) (2,660,190) (2,737,438) (77,248) Most civilian workers are covered by this fund. Employees and employing agencies each pay 6%% of basic salaries. About 779,000 persons are expected to be on annuity rolls by June 1966. Fund balances are invested in U.S. securities. Receipts include $62 million in 1964, $65 million in 1965, and $67 million in 1966 from general funds under Public Law 87-793. NOA 979,941 1,043,250 1,043,250 NOA NOA NOA Exp. 979,886 76,592 419,838 1,318,296 1,043,250 79,592 494,098 1,433,456 1,043,250 81,592 569,346 1,615,593 2,000 75,248 182,137 Employees health benefits fund Exp. (trust revolving fund) 654 Employees life insurance fund Exp. (trust revolving fund) 654 Retired employees health bene- Exp. fits fund (trust revolving fund) 654 -14,562 -13,870 -18,109 -4,239 -49,383 -47,591 -49,701 -2,110 -115 -256 471 Federal Communications Commis- Exp. sion trust revolving fund 508 43 -45 Foreign Claims Settlement Commis- NOA sion, war claims fund 151 Exp. 47,500 515 9,500 3,000 104,500 72,000 General Accounting Office trust NOA fund 904 Exp. 6 8 6 6 6 6 Historical and Memorial Commissions: Civil War Centennial Commission, Exp. donations 910 1 Battle of Lake Erie Sesquicenten- NOA nial Celebration Commission, Exp. donations 910 1 1 National Capital Housing Authority Exp. trust revolving fund 555 -436 (Employees health benefits fund will have 2,250,000 participants by June 1966; employees life insurance fund, 2,600,000; and retired employees health benefits fund, 223,000.) 111 45 (Fund is used as clearinghouse for settlements with foreign governments on radiotelephone and radiotelegraph messages.) 95,000 69,000 Alien property fund receipts are appropriated for claims under the General War Claims Act. Estates are held in trust for legal claimants. O 1 (Donations are used under the terms received.) 3 o 4 Donations are used under the terms received. 2,090 -300 -2,390 (Activity of $33.8 million involves 11,000 housing units.) 00 ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1965 1964 Account and functional code 1966 Increase or CO Explanation of NOA requests TRUST FUNDS—Continued OTHER INDEPENDENT AGENCIES— Continued 1-3 K National Capital Planning Commis- NOA sion contributed fund 555 Exp. 500 71 102 733 National Science Foundation dona- NOA tions 703 Exp. 1 1 1 1 Railroad Retirement Board: Rail- NOA road retirement account 654 Receipts appropriated: (Employment taxes) NOA (Interest on investments) (Payment from OASI trust fund.) (Payment from Federal disability insurance trust fund.) (Payment for military service credits.) (Repayment of advances to Railroad Unemployment insurance account.) (Other) Expenditures: (Benefit payments) 1 1 (1,207,834) (1,290,533) (1,387,358) (96,825) 640,674 NOA NOA 130,128 402,636 142,000 399,400 NOA 19,139 19,800 20,100 300 13,834 16,558 2,724 62,525 69,800 7,275 NOA NOA NOA Exp. Exp. 37,454 One-half the cost of land for the George Washington Memorial Parkway is contributed by Maryland and Virginia. Donations received are used in furtherance of general purposes of the Foundation. 608,970 (Administrative expenses) Exp. (Advances for unemployment Exp. insurance.) -102 -733 707,200 1 70,126 A 3,600 5,000 147,000 11,600 411,000 9,507 12,300 12,100 -200 (1,138,659) (1,184,800) (1,248,350) (63,550) 1,092,451 1,124,400 1,145,700 I 63,300 M2,000 10,650 10,400 11,021 250 50,000 50,000 35,187 The Railroad retirement system serves as a combined social insurance and staff retirement system for workers in the railroad industry. Increased tax receipts result from a scheduled increase in retirement tax rates effective in January 1966, and anticipated higher taxable salaries. Proposed changes in existing law will require additional taxes to cover hospital insurance and certain selected increased benefits to certain railroad beneficiaries. Expenditures are primarily for cash increases since hospital benefits begin July 1, 1966. Trust fund balances are invested in interest-bearing U.S. securities. The number receiving monthly benefits at the end of each year is as follows (in thousands): 1964 actual Retired individuals Disabled and their dependents Survivors 495 101 284 1965 1966 estimate estimate 503 102 292 509 102 299 W a a Ii a > CO Smithsonian Institution trust fund NOA 704 Exp. 15 12 15 15 15 16 Tax Court of the United States trust NOA fund 904 Exp. 29 4 27 27 19 19 United States Information Agency NOA trust funds 153 Exp. NOA United States-Puerto Rico Commis- Exp. sion on the Status of Puerto Rico: Contributions 910 NOA Total, other independent agencies. Exp. 35 33 17 45 8 9 5 245 3,960,639 2,393,154 2,562,527 366,345 387,575 1,404 355,247 432,369 Donations, subscriptions, and fees are used for part of cost of the Canal Zone Biological Area. Judges pay 3% (currently $7 thousand) and the Government pays the remainder ($20 thousand) to finance survivors annuity system. -9 -36 -245 129 121 3,712,188 1 Decrease due to decline in contributions towards exhibits by business concerns. Contribution is Puerto Rico's share of expenses. 8 4,225,756 1 268,717 A 3,600 2,826,488 | 305.961 A42,000 DISTRICT OF COLUMBIA District of Columbia receipts appropriated: Current appropriations 555 NOA Permanent appropriations 555 NOA Exp. o o 1,598 450,407 1 68,532 A 5,700 9 1,607 22,626 454,995 f Funds of the municipal government are accounted for through U.S. Treasury as trust funds. Congressional appropriations of municipal funds are required currently for most municipal activities. Supplemental in 1966 is for proposed legislation for contribution to mass transit system. Proposed for separate transmittal, other than pay increase supplemental. GO CO ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued CO O 1964 code 1965 1966 Increase or decrease (-) Explanation of NOA requests TRLJST FUND S—Continued DEPOSIT FUNDS 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 the Interior Department of Justice Department of Labor Post Office Department Department of State Treasury Department Atomic Energy Commission Federal Aviation Agency General Services Administration Housing and Home Finance Agency. National Aeronautics and Space Administration. Veterans Administration Independent Offices: Farm Credit Administration Federal Deposit Insurance Corporation. Federal Home Loan Bank Board. -359 100 24 -1.381 -2.470 -91 6,280 3.400 Exp. Exp. Exp. Exp. Exp. Exp. Exp. Exp. Exp. -356 -63 -39 9.930 -7.092 -701 -27.330 3.281 -70.128 Exp. Exp. Exp. Exp. Exp. Exp. Exp. Exp. Exp. Exp. Exp. -144,288 467 -248 4.702 91 -294,407 -36 -9,838 15.160 -223 -276 -75,694 -59 -250 56.000 -100 -250 -25,000 -25,000 700 335 -45 -700 -380 5,000 200 -4.800 Exp. 1.556 1,556 1.556 Exp. Exp. -2.961 -2,780 -2,900 477 -2,900 -370 -847 Exp. -41.273 29.000 -5,000 -34.000 468 16 6,181 -273 83 38,632 3.400 -30,933 -827 84 24 -7.562 -2,197 -174 -32,352 (These funds account for collections that are either (a) held in suspense temporarily and later refunded, or paid into some other fund of the Government; or (b) held by the Government as banker or agent for others. These amounts are the net change in balances of all deposit funds in each agency. A negative figure indicates an excess of receipts over disbursements.) w d o a 30,933 131,694 -41 3 CD O5 Exp. Exp. 2,520 -2,426 -218 611 1,049 302 600 -144 -11 -1,193 -302 Exp. -566.978 -47,299 30,050 77,349 352 Exp. 37.092 78,959 51,000 -27,959 (Bank operations are financed by $67.0 million of Government capital and $92.4 million of private capital as of June 1964.) Federal Intermediate Credit Banks Exp. 352 182,203 207,578 228,050 20,472 (Bank operations are* financed by $120.6 million of Government capital and $59.9 million of private capital as of June 1964.) Federal Land Banks 248,401 302,000 181,000 -121,000 (Banks are wholly privately owned enterprise.) Exp. 1.571,914 -249,897 150,000 399,897 (Banks are wholly privately owned enterprise.) Federal Deposit Insurance Corpora- Exp. tion ..506 -182.866 -194,000 -212,000 -18,000 Total, Government-sponsored Exp. enterprises. 1,856,744 144,640 398,050 253,410 Smithsonian Institution Other District of Columbia Total, deposit funds GOVERNMENT-SPONSORED ENTERPRISES Farm Credit Administration: Banks for Cooperatives. 352 Exp. Federal Home Loan Bank Board: Home loan banks 551 (Premium receipts and interest on Investments irI U.S. securities exceed current claims and expenses; corporatori has no capital stock.) o o w 4 GRAND TOTALS—TRUST FUNDS Total new obligational authority 31,532,693 31,757,368 Expenditures: Subtotal 29,406,005 29,374,369 A 250,000 -521,379 -578,901 -598,942 -20,041 28,884,626 29,045,468 32,898,479 3,853,011 Interfund transactions Total expenditures 33,973,011 A 538,846 2,754,489 31,415,192 [3,873.052 2,082,229 A CO Ox 00 to ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued 1964 Account and functional code 1965 1966 Increase or Explanation of NOA requests (-) MEMORANDUM—ANNEXED BUDGETS Department of Agriculture: Milk Marketing Administration: Not included above Treasury Department: Comptroller of the Currency: Included under "Deposit funds" above.* Exchange Stabilization Fund: Included under "Deposit funds" above. Operating expenditures Other Independent Agencies: Board of Governors of Federal Reserve System: Not included above* Exp. -621 11 Exp. -705 -660 Exp. 86,786 Exp. (3.462) Exp. Farm Credit Administration: Banks for Cooperatives: Included under "Government- Exp, sponsored e n t e r p r i s e s " above. Included under "Deposit Exp. funds" above. Not included above Exp. Total . Exp. -11 -600 60 (Operations are financed by assessments on regulated milk handlers.) (Operations are financed primarily by assessments from national banks. Estimated expenditures were prepared by the Bureau of the Budget.) (The fund is financed by $200 million of Government capital and by earnings.) (4,050) (4.100) -210 194 85 -109 (Operations are financed by levies upon the Federal Reserve Banks, in proportion to their capital and surplus.) 37.092 78,959 51,000 -27.959 -276 426 16,901 2.674 5,000 2.326 (Loan program is estimated at $1.2 billion in 1966, slightly higher than 1965. Repayments of loans and other income will be supplemented by borrowing from the public of $82.2 million in 1965 and $57 million in 1966. Government capital is being retired by $13.5 million in 1965 and $14 million in 1966. See further explanation under Government-sponsored enterprises, above.) 53,717 82,059 56,000 -26.059 (50) -426 o 0 Federal intermediate credit banks: Included under "Government- Exp. sponsored enterprises" above. Included under "Deposit Exp. funds" above. Not included above Exp. Total Federal Deposit Insurance Corporation: Included under "Government- Exp. sponsored enterprises" above. Included under "Deposit funds" Exp. above. Total Total: Included under "Government- Exp. sponsored enterprises" above. Included under "Deposit funds" Exp. above. Not included above _ _ Exp. Total, annexed budgets. Exp. 182,203 207,578 228,050 20,472 -1,605 -510 1,125 1,635 14,380 4,300 3,000 -1,300 194,978 211,368 232,175 20,807 -182,866 -194,000 -212,000 -18,000 -2,780 477 -370 -847 -185,646 -193,523 -212,370 -18,847 36,429 92,537 67,050 -25,487 81,420 -267 155 422 30,450 7,179 8,085 906 148,299 99,449 75,290 -24,159 (Loan program is estimated at $5.5 billion for 1966, which is approximately $400 million more than the estimated loans for 1965. Repayments of loans and other income will be supplemented by borrowing from the public of $211 million in 1965 and $231 million in 1966. Government ownership of capital stock is being increased by $7 million in 1965. See further explanation under Government-sponsored enterprises, above.) (Insured deposits continue to grow with expansion of the population and the economy. The cumulative net income, which is being retained as a reserve, is estimated to be approximately $2.9 billion by June 1965 and $3.1 billion by June 1966. The principal revenues are from insurance assessments (approximately $96 million for 1965 and $102 million for 1966) and interest on investments ($105 million and $110 million for the same 2 years). See further explanation under Government-sponsored enterprises, above.) o a * Amounts reported are on a calendar year basis. CO 85 PART 6 SPECIAL ANALYSES 355 SPECIAL ANALYSIS A THREE MEASURES OF FEDERAL FINANCIAL TRANSACTIONS Data on Government financial transactions are used for many purposes. No single set of accounts can serve all purposes equally well. As a result, various budget concepts and forms have been developed to meet different needs. The three measures of Federal receipts and expenditures most commonly used are: (1) the administrative budget, (2) the consolidated cash statement of Federal transactions, and (3) the Federal sector of the national income accounts. A reconciliation of these three measures is presented in table A-l. ADMINISTRATIVE BUDGET The administrative budget covers receipts and expenditures of funds owned by the Federal Government—the general fund, special funds, public enterprise funds, and intragovernmental revolving and management funds. Interfund transactions between these Federal accounts are excluded from the total while business-type activities (such as the Post Office) are normally recorded as "net expenditures." Although budget documents placed before the Congress have regularly included both federally owned funds and funds held in trust by the Government, only the former have been traditionally used to calculate budget totals. For many years, the administrative budget served as the principal financial plan for conducting the affairs of Government. It represented a focal point for management and decision making with respect to Government activities. As long as almost all Federal financial transactions were carried out with federally owned funds, the administrative budget provided adequate coverage. In recent years, however, trust fund operations have grown rapidly. Several major parts of the Government's program are now carried out through trust funds, particularly those for labor, welfare, and highway activities. This means that the flow of financial transactions between the Federal Government and the public is considerably larger than is suggested by the administrative budget. CONSOLIDATED CASH STATEMENT The consolidated cash statement of Federal receipts and payments is designed to show more fully the flow of cash transactions (excluding borrowing) between the Federal Government and the public. It is more comprehensive and complete than the administrative budget in that it includes the receipts and expenditures of trust funds as well as funds wholly owned by the Federal Government. Since the consolidated cash statement measures the flow of cash between the public and the Government, intragovernmental transactions (transactions between budget and trust fund accounts) are excluded. 356 357 SPECIAL ANALYSES Government payments are recorded on a checks-paid (i.e., cash flow) basis while administrative budget outlays are on a checks-issued basis. Table A-1. RELATION OF FEDERAL RECEIPTS AND EXPENDITURES IN THE ADMINISTRATIVE BUDGET, CONSOLIDATED CASH STATEMENT, AND NATIONAL INCOME ACCOUNTS, 1964-66 [In billions of dollars) 1964 actual 1965 estimate 1966 estimate RECEIPTS Administrative budget receipts Plus: Trust fund receipts Less: Intragovernmental transactions Receipts from exercise of monetary authority Equals: Federal receipts from the public Adjustments for agency coverage: Less: District of Columbia revenues Adjustments for netting and consolidation: Plus: Contributions to Federal employees' retirement funds, etc__ Less: Interest, dividends, and other earnings _ Adjustments for timing: Plus: Excess of corporate tax accruals over collections, personal taxes, social insurance contributions, etc.. Adjustments for capital transactions: Less: Realization upon loans and investments, sale of Government property, etc Equals: Receipts—national-income accounts 89.5 91.2 94.4 30.3 4.2 .1 115.5 30.5 4.2 .1 117.4 33.6 4.4 .1 123.5 .3 .3 .3 2.0 1.4 2.1 1.9 2.2 2.1 —•. 7 —. 9 —1.8 .6 .4 .5 114.7 116.0 121.0 97.7 97.5 99.7 EXPENDITURES Administrative budget expenditures Plus: Trust fund expenditures (including Governmentsponsored enterprise expenditures, net) _ _ __ Less: Intragovernmental transactions Debt issuance in lieu of checks and other adjustments Equals: Federal payments to the public Adjustments for agency coverage: Less: District of Columbia expenditures Adjustments for netting and consolidation: Plus: Contributions to Federal employees' retirement funds, etc Less: Interest received and proceeds of Government sales. Adjustments for timing: Plus: Excess of interest accruals over interest payments Excess of deliveries over expenditures and other items. _ . Less: Commodity Credit Corporation foreign currency exchanges Adjustments for capital transactions: Less: Loans—Including Federal National Mortgage Association, foreign economic assistance, redemption of International Monetary Fund notes, etc _ Purchase of land and existing assets and other items. Equals: Expenditures—national-income accounts 28.9 4.2 29.0 4.2 32.9 4.4 2.0 .9 .8 120.3 121.4 127.4 .3 .4 .4 2.0 1.4 2.1 1.9 2.2 2.1 .9 .8 .6 1.5 1.7 1.2 .6 .8 .7 3.4 .5 1.4 .5 .7 .5 118.5 121.0 127.0 358 THE BUDGET FOR FISCAL YEAR 1966 FEDERAL SECTOR OF THE NATIONAL INCOME ACCOUNTS The Federal sector of the national income and product accounts is designed to provide a measure of the direct impact of Federal fiscal activity on the Nation's current flow of income and output. Like the consolidated cash statement, the Federal sector account includes most administrative budget and trust fund transactions. However, in contrast both to the consolidated cash statement and the administrative budget, only those receipts and expenditures which directly affect the current flow of income and output are recorded. Therefore, the Federal sector of the income and product accounts excludes transactions involving purely financial claims (such as loans) and exchanges of secondhand or existing assets. Such transactions represent neither the production of current output nor incomes, even though they have indirect effects on the level or composition of economic activity. Both the administrative budget and consolidated cash statement count business tax receipts, like other receipts, as they are collected. In contrast, the Federal sector account records some tax receipts, particularly corporate income taxes, as they accrue, on the ground that the main economic impact of these taxes is more closely associated with the accrual of liabilities than with actual cash collections. Also, the Federal sector records most purchases of goods and services when delivery is made, while the administrative budget records most expenditures at the time checks are issued and the consolidated cash statement when funds are withdrawn from Treasury accounts (cash or checks-paid). USES ASTD LIMITATIONS Each of the three measures—the administrative budget, consolidated cash statement, and the Federal sector of the national income and product accounts—is useful for specific kinds of analysis, and the selection of which to use should be determined by the problem at hand. The administrative budget provides a useful measure of the Government's operations which are financed by the Government's own funds. The Federal sector account is especially suited for an analysis of fiscal policy. It was specifically designed to complement the data on private expenditures and incomes contained in the national income accounts. The national income accounts, however, exclude a substantial volume of financial transactions through which the Federal Government significantly affects the capital and credit markets. Moreover, in financial markets, the flow of cash payments to the Government may be more significant than the accrual of tax liabilities. As a result, the consolidated cash statement is generally more useful than the national income accounts for determining Government financing and net borrowing requirements and for analyzing the Federal impact on money and credit. For certain types of problems, no overall measure of receipts and expenditures will serve adequately. Since the various receipt and expenditure transactions have different economic effects, a given SPECIAL ANALYSES 359 aggregate will have an economic impact which depends importantly on the composition of the total. In addition, many Government transactions besides receipts and expenditures affect the economy. For example, a rapid expansion in new appropriations and in Government orders could stimulate a rise in business activity well before either the delivery of goods, the performance of services, or the payment for them. The management of public debt is a further factor which has a significant impact in the money and credit markets of the economy. Consequently, in evaluating the economic impact of Federal Government activities, there is no substitute for complete and detailed analysis of the Government program in all its aspects. RELATIONSHIP OF CONSOLIDATED CASH STATEMENT TO THE ADMINISTRATIVE BUDGET Certain adjustments are needed to derive the consolidated cash statement from administrative budget totals, as summarized in table A-l. 1. Trust funds.—The consolidated cash statement covers the financial transactions of Federal trust funds (including Governmentsponsored enterprises) in addition to administrative budget receipts and expenditures. Accordingly, excise taxes that support the highway trust fund, employment taxes, deposits by States for unemployment insurance, veterans life insurance premiums, and other trust fund receipts are included along with the corresponding trust fund disbursements. 2. Intragovernmental transactions.—Administrative budget receipts include amounts paid into the Treasury by trust funds. (These amounts are also reported as trust fund expenditures.) Similarly, there are trust fund receipts, such as interest on trust fund holdings of U.S. securities, which are also reported as administrative budget expenditures. In consolidating the transactions of budget and trust funds, these intragovernmental transactions are eliminated from the combined receipts and expenditures since no exchange of cash with the public is involved in these operations. 360 THE BUDGET FOR FISCAL YEAR 1966 Table A-2. INTRAGOVERNMENTAL TRANSACTIONS EXCLUDED FROM THE CONSOLIDATED CASH STATEMENT [In millions of dollars] Description 1964 actual 1966 1965 Administrative budget receipts which are trust fund expenditures: Franchise taxes from Government-sponsored enterprisestrprises Dividends, interest, etc., from Federal K al Mo Association Reimbursements for expenses and services. Repayment of advances from unemployment trust fund and other Total, administrative budget receipt items. 31 64 16 67 16 60 362 103 48 461 191 129 1,613 1,747 14 1,867 77 83 1,038 16 -4 6 111 1,104 20 149 1,105 3 39 6 1 2,753 3,003 3,247 976 1.039 1,038 4,190 4,234 4,414 Trust fund receipts which are administrative budget expenditures: Interest on trust funds Contributions for military service credits Payments to District of Columbia (including Federal grantsin-aid) Employing agencies' payments to employees' retirement funds. Awards to Indian tribal funds Advances to unemployment trust fund Contributions to veterans life insurance funds Other Total, trust fund receipt items Deductions from employees* salaries for retirement. Total, intragovernmental transactions I 3. Exercise of monetary authority.—These receipts now come mostly from seigniorage; that is, they represent the difference between the cost of the metal and minting of coins, on the one hand, and the actual value of the coins as money on the other. Seigniorage is included in administrative budget receipts, but is not a cash receipt from the public. 4. Debt issuance in lieu of checks.—In a few cases, Government expenditures are made by issuing bonds or notes, or increasing the value of bonds outstanding in lieu of issuing checks. Such transactions are recorded in the administrative budget as expenditures when the debt is thus increased, even though no cash outflow takes place until the debt instrument is redeemed. For example, the administrative budget records interest on savings bonds when it accrues (and is added to the redemption value currently payable) rather than when it is actually paid. In computing cash payments to the public, interest payments are included only when the bonds are cashed. Therefore, an adjustment is made for the difference between the amount of interest accrued and the amount paid. 361 SPECIAL ANALYSES Table A-3. DEBT ISSUANCE IN LIEU OF CHECKS, NET (in millions of dollars) Description 1964 actual Accrued interest added to value of debt (savings bonds, etc.) Treasury notes issued for: International Monetary Fund International Development Association Inter-American Development Bank United Nations funds securities Armed Forces leave bonds issued 1 Adjusted-service bonds issued Excess profits tax refund bonds issued 2 Total, debt issuance in lieu of checks, net 1965 1966 End 1966 outstanding 879 833 648 12,876 117 13 25 66 250 -5 3,839 11 90 71 5 1 16,893 * * 42 -1 * * 300 -126 -60 -37 -1 * * 1,099 1,119 724 *Less than one-half million. Negative figures represent net redemption. Reported as refunds of receipts. 1 2 A second example involves transactions in special notes used to pay certain U.S. Government obligations. The Government has paid a portion of its subscriptions to the International Monetary Fund, the International Development Association, and the Inter-American Development Bank in non-interest-bearing notes. The notes are considered administrative budget expenditures and become part of the public debt when they are issued. However, they are not counted as a payment to the public until they are redeemed for cash, at which time they cease to be part of the public debt. Conversely, when the institutions return cash to the Treasury in exchange for notes, payments to the public are reduced by the amount of the cash receipts and a corresponding increase in the public debt takes place. 5. Changes in outstanding checks.—Administrative budget and trust fund expenditures are recorded at the time checks are issued. To reflect more accurately the point in time at which cash payments actually affect Treasury cash balances, an adjustment is made to place expenditures on a checks-paid basis. FEDERAL SECTOR ACCOUNTS—DEFINITIONS OTHER MEASURES AND RELATIONSHIP TO The national income accounts, as developed and prepared by the Department of Commerce's Office of Business Economics, is a dualentry accounting system for making estimates of the current productive activity of U.S. residents.1 The output side of the national income accounts depicts the total market value of currently produced goods and services, classified by type of expenditures: consumer expenditures; gross private domestic investment in new construction, equipment, and inventories; Federal, State, and local government purchases of goods and services; 1 The accounts are discussed in detail in the Department of Commerce's National Income, 1954 edition, pp. 143-149, and U.S. Income and Output, 1958 edition, pp. 53-57, and 99-101. Each is a "Supplement to the Survey of Current Business." Current estimates on a quarterly and an annual basis are provided in the Survey of Current Business and in the Economic Indicators. 362 THE BUDGET FOR FISCAL YEAR 1966 and net exports. The total, obtained by summing these items, is called the gross national product (GNP). The total value of the gross national product is balanced by an equal amount of gross income earned in producing the output. 2 The income side of the accounts portrays this total, classified by type of income; for example, wages and salaries, proprietors' income, corporate profits, rent, and net interest and certain costs of production, such as depreciation and indirect business taxes. The income accounts also provide additional data showing various transfers of income from one sector to another, such as business gifts to nonprofit institutions and social security benefits from the Government to individuals. The term "residents" is defined to include the Federal Government as well as State and local governments, corporations incorporated under U.S. laws (but not their foreign branches or subsidiaries), individuals employed in the United States proper, and U.S. citizens employed by the Federal Government abroad (civilian as well as military). "Nonresidents" include governments, individuals (other than employees of the Federal Government), and businesses in foreign countries, as well as in Puerto Rico, the Virgin Islands, and other U.S. possessions. It should be pointed out that national income data, although based on accounting statements of economic units, are statistical aggregates rather than accounting totals in the ordinary sense. Federal receipts.—Federal receipts on a national income basis 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. Personal tax and nontax receipts consist mostly of individual income taxes, estate and gift taxes, fines, penalties, and charges for Government services. Corporate profits tax accruals represent the Federal tax liability incurred and accrued by resident corporations on their corporate earnings during the specified year or period. Federal corporation income tax collections do not necessarily coincide with—and usually lag—accruals. Indirect business tax and nontax accruals consist primarily of excise taxes, customs duties, Federal receipts from rent and royalties, and other charges to business. Receipts from contributions for social insurance are composed chiefly of employment taxes, contributions to the retirement funds for Government employees, and deposits by the States to the unemployment trust fund. Federal expenditures.—Federal expenditures on a national income basis 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 consistent with the framework of accounts covering the Nation's total economic activity. 1. Purchase of goods and services.—These purchases represent the value of the Nation's currently produced output bought directly by * "Grot* income" includes capital consumption allowances and certain charges against production. SPECIAL ANALYSES 363 the Federal Government. They are reported in the national income accounts net of Government sales. Purchases include the pay of active military and civilian employees of the Federal Government, employer contributions to retirement, insurance and other benefits for Federal employees, outlays on new equipment and supplies for defense and other programs, new construction, research and development contracts with corporations organized for profit, expenditures for the purchase of commodities (even if the commodities are then donated or transferred, domestically or abroad), and generally, the administrative expenses of Government programs. 2. Transfer payments.—Transfer payments consist of expenditures by the Federal Government for which no current output or services have been rendered; in other words, they are payments to certain recipients for which no contribution to national production is made during the time period under consideration. There are two important criteria which must be met by an expenditure classified as a transfer payment: (a) the recipient must be an individual, a nonprofit institution, or a nonresident (for example, a foreign government) and (b) the expenditure must also be in monetary form and not in the form of goods or commodities. Examples of transfer payments are: veterans compensation, pensions, and benefits; retired pay to Federal civilian or military personnel; unemployment benefits; old-age, survivors, and disability insurance; cash gifts and contributions to nonresidents; nonrepayable outlays for scholarships and fellowships; and research and development expenditures to private nonprofit institutions. Although such transfer payments do not directly enter GNP calculations, they do enter into the income stream and have an impact on national output when respent by the recipients. For national income purposes, net interest paid to nonresidents is considered a transfer payment. All other transactions involving interest expenditures and receipts (that is, to and from residents) are reported in the net interest paid category. 3. Grants-in-aid to State and local governments.—Grants, for purposes of the national income accounts, are Federal payments to State and local governments (other than for interest on the public debt), including State and local educational institutions. Most of the grantsin-aid and the shared revenues in Special Analysis I of the budget are included in grants. Excluded, however, are items such as |a) outlays to nonprofit and privately owned hospitals, Ob) outlays-inkind such as farm commodities distributed to State ana local government units, and (c) payments to Puerto Rico, the Virgin Islands, and other possessions. Payments to public educational institutions for research and development contracts are recorded as grants. Like transfer payments and net interest paid, Federal grants-in-aid are counted in the GNP when respent by recipients—in this case, as purchases by State and local governments. 4. Net interest paid.—Net interest pajd consists of the interest outlays to residents minus the interest received from them. 5. Subsidies less current surplus of Government enterprises.—This category consists of two elements which are consolidated for analytical and statistical reasons: (a) subsidy payments to resident businesses, 364 THE BUDGET FOR FISCAL YEAR 1966 and (b) the "current surplus" or "deficit," as the case may be, of Government enterprises. (a) In principle, a Government expenditure becomes a subsidy when it enables a producer to sell goods and services below the cost-price relationship determined by market forces or when it is a payment made to curtail production. 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, certain outlays for the export of surplus agricultural commodities by business, 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) whose operating costs are to a great extent covered by the sale of goods and services to the public, as opposed to being financed by tax receipts. In short, Government enterprises conduct operations which are of a commercial nature. In the national income accounts, part of their operations are reported in the business sector and part in the Federal sector. The Federal sector accounts cover their interest expenses, outlays for capital formation and the difference between sales and operating costs. Relationship to the consolidated cash statement.—There are a number of important differences between the Federal sector account and the consolidated cash statement. These are shown in table A - l . 1. Coverage.—With respect to coverage, the Federal Government part of the income and product accounts excludes the revenues and expenditures of the District of Columbia, which are classified by the Department of Commerce in the State and local government sector. 2. Netting and consolidation.—The Federal sector account records both interest paid by the Government and Government purchases on a net basis. Accordingly, interest received by the Government is excluded from cash receipts and is netted against Federal interest payments. Similarly, receipts from sales of Government products are netted against Government purchases. Neither adjustment influences the surplus or deficit, for in effect, both receipts and expenditures are decreased by the same amount. Adjustments for consolidation are needed to maintain consistency with income and product account concepts. For example, a few transactions such as employer and employee'contributions to Federal employees' retirement funds are excluded from the consolidated cash statement as intragovernmental transactions. In the national income accounts, however, these contributions are considered to be part of the total compensation of Government employees. Again, the deficit or suplus is unaffected by the adjustment, since total receipts and expenditures are both increased by the same amount. 3. Timing.—Business taxes are recorded in the national income accounts as they are accrued by the private sector, rather than when they are collected by the Government. The principal timing adjustments for expenditures are: (a) The Federal sector account records Federal purchases in terms of the delivery of goods and services to the Government, whereas cash payments for these deliveries may precede SPECIAL ANALYSES 365 or follow; (b) Commodity Credit Corporation certificates of interest which represent shares in Commodity Credit Corporation commodity loans are recorded as commodity purchases when the certificates are issued, rather than when the collateral is surrendered; (c) interest on savings bonds and Treasury bills is treated as an expenditure in the Federal sector account when the interest is accrued, rather than when it is actually paid out in cash; and (d) certain foreign currency activities of the Commodity Credit Corporation also require an adjustment—the Corporation facilitates exports of surplus agricultural commodities by paying dollars to exporters, in exchange for foreign currencies received for the exports. Expenditures in the Federal sector account are recorded only at the time these foreign currencies are subsequently used for Government programs. The consolidated cash statement, on the other hand, includes the dollar payments to exporters but excludes both the receipt and the subsequent expenditure of a large part of these foreign currencies. 4. Capital transactions.—In the consolidated cash statement, many capital or financial transactions are included in receipts and expenditures. The Federal sector account excludes these transactions since they do not affect current production or income. Accordingly, an adjustment is made to exclude items such as loans, mortgages, and other financial claims. Also excluded are purchases and sales of existing assets, such as land and secondhand property. SPECIAL ANALYSIS B PUBLIC ENTERPRISES, TRUST FUNDS, AND GROSS EXPENDITURES OF THE GOVERNMENT This analysis presents selected information on the public enterprise funds and the trust funds with special reference to financing. It also covers certain receipts and reimbursements from outside the Treasury to general fund appropriations and other accounts which are netted in the administrative budget expenditures, and it indicates the magnitude of total expenditures if such netting did not occur. Additional tables in this special analysis relating to borrowing and investments in U.S. securities are an integral part of the computation of the changes in public debt in table 11 of 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 expenditures have been included, on a net basis, in the administrative budget 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 or receipts. Expenditures and receipts.—Gross expenditures of public enterprise funds are estimated to be $22.3 billion in 1966, and their receipts will be $19.7 billion (table B-l), resulting in net expenditures of $2.6 billion which are included in the administrative budget totals. The Commodity Credit Corporation and the postal fund together account for somewhat more than half of the transactions. The figures for both 1965 and 1966 take account of both existing and proposed legislation. The expenditures in table B-l include certain interfund payments to the general fund, principally for interest (see note at end of table 14). The receipts shown in table B-l 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, accounting for $1.9 billion of the Commodity Credit Corporation receipts shown for 1966. 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 B - l . 366 367 SPECIAL ANALYSES Table B-1. GROSS EXPENDITURES AND APPLICABLE RECEIPTS OF PUBLIC ENTERPRISE FUNDS (in millions of dollars) Applicable receipts Gross expenditures Description 1964 actual 1965 estimate 1,141 56 37 71 47 52 52 52 8,739 7,841 i 5,920 7,188 15,901 663 66 355 772 72 1,068 70 574 15 168 713 17 1,011 16 19 118 15 124 8 125 15 115 13 122 6 127 8 230 285 7 53 250 4,394 4 8 58 289 4,519 1 * 8 184 1965 1966 913 162 1,096 146 9,131 1964 actual Funds appropriated to the President: Mutual defense and development Other Department of Agriculture: Commodity Credit Corporation Rural Electrification Administration (proposed legislation) Other Department of Commerce Department of Defense: Military Civil (Panama Canal Company) Department of Health, Education, and Welfare Department of the Interior Department of Labor Post Office Department Treasury Department General Services Administration Housing and Home Finance Agency: College housing loans fund Urban renewal fund Federal National Mortgage Association™ Federal Housing Administration Public Housing Administration Other Veterans Administration Other independent offices: Export-Import Bank of Washington Federal Savings and Loan Insurance Corporation Small Business Administration Tennessee Valley Authority Other Total. Receipts from the public Receipts from other accounts _ 7 164 242 4,971 365 1 * 152 285 5,237 1 * 5,410 1 * 330 370 314 761 657 107 667 326 494 968 787 613 133 626 367 584 1,052 762 635 205 595 111 135 661 804 508 29 640 434 537 616 70 346 371 32 20 497 376 38 20,915 22,416 1 96 185 1,600 1966 V7 289 4,696 1 * 102 227 1,573 890 398 36 896 392 30 833 1,466 1,136 1,182 1,097 -2 442 384 31 318 222 312 39 333 262 319 42 334 644 345 43 22,280 16,371 19,363 19,673 (13,444) (15,223) (16,213) (2,927) (4,140) (3,460) "Less than one-half million dollars. 1 Includes advances from foreign assistance and special export programs of $1,889 million in 1964, $2,554 million in 1965, and $1,738 million in 1966. Capital and borrowing.—Capital requirements of the public enterprise funds are usually supplied through new obligational authority (either appropriations or some other form of NOA) from the general fund. While most public enterprise funds are operated to be selfsustaining over a period of years, the largest—the Commodity Credit 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 Housing and Home Finance Agency. Table B-2 reflects all such new obligational authority. 368 THE BUDGET FOR FISCAL YEAR 1966 Writeoffs shown here are primarily the return of capital or transfer of dividends to the general fund of the Treasury; they include a few cases of transfers to appropriations or lapses of obligational authority. Table B-2. NEW OBLIGATIONAL AUTHORITY A N D WRITEOFFS OF PUBLIC ENTERPRISE F U N D S (in millions of dollars) Description Funds appropriated to the President: Mutual defense and development Other Department of Agriculture: Commodity Credit Corporation. _ _ Rural Electrification Administration (proposed legislation) Other _ Department of Commerce. _ Department of the Interior: Existing legislation Proposed legislation Department of Labor. _. Post Office Department Treasury Department General Services Administration Housing and Home Finance Agency: College housing loans Urban renewal fund Federal National Mortgage Association Federal Housing Administration Public Housing Administration Other... Veterans Administration Other independent offices: Export-Import Bank of Washington Small Business Administration Tennessee Valley Authority. . __ Other Total Writeoffs (including capital transfers) Nevr obligational authority 1964 1964 1965 1966 1,062 1,199 25 1,275 35 48 3,275 2,564 2,331 * 49 102 105 134 M35 5 60 122 73 65 *34 719 1 756 300 410 1,425 42 858 150 206 212 102 150 248 217 100 90 47 1 145 48 13 59 * 6,470 7,788 5,444 28 90 18 304 65 11 20 2 2 32 1 2 1 30 * * 250 1 (V) 135 50 50 50 50 * 53 * 57 * 578 1,539 1,340 6 3 183 282 317 * * * 692 92 * 3 4 287 163 230 114 150 1 31 1 2 1966 1965 34 "Less than one-half million dollars. 1 Excludes transfers received upon initiation of new funds: For Rural Electrification Administration, Department of Agriculture, $1,077 million in 1965; for Department of the Interior, Southeastern Power Administration, $305 thousand in 1966, Southwestern Power Administration, $6 million in 1966, and Bonneville Power Administration, $87 million in 1966; and for "Veterans reopened insurance fund," Veterans Administration, $2 million in 1965. 2 Unobligated balance transferred to "Salaries and expenses, Mexican farm labor program." * Excludes transfer of $18 million from "Urban renewal fund" to "Urban mass transportation fund." 4 Excludes transfer of $7 million to appropriation "Veterans insurance and indemnities." Balances available.—The balances of public enterprise funds are shown in table B-3. They are there divided between the balances which are accounted for as assets of the funds (cash in banks, fund balances with the Treasury, and U.S. securities), and the undrawn authorizations to obtain capital from the Treasury, to borrow, or (in two cases) to contract in excess of their cash availability. 369 SPECIAL ANALYSES Table B-3. BALANCES OF PUBLIC ENTERPRISE FUNDS (in millions of dollars) Cash balances in Treasury and U.S. securities as of June 30 Description Funds appropriated to the President: Mutual defense and development Other Department of Agriculture: Commodity Credit Corporation Rural Electrification Administration (proposed legislation) Other Department of Commerce Department of Defense—Military Department of Defense—Civil (Panama Canal Company) Department of Health, Education, and Welfare Department of the Interior Department of Labor Post Office Department Treasury Department General Services Administration Housing and Home Finance Agency: College housing loans Urban renewal fund Federal National Mortgage AssociationFederal Housing Administration Public Housing Administration Other ----—.Veterans Administration Other independent offices: Export-Import Bank of Washington Loans to Federal Deposit Insurance Corporation Loans to Federal home loan banks Federal Savings and Loan Insurance Corporation Small Business Administration Tennessee Valley Authority Other Total. 1964 actual 1965 2,868 25 2,986 10 17 6 172 143 15 3 157 308 723 * 63 339 35 1.092 96 235 580 63 293 36 883 105 299 785 62 287 103 918 116 389 1,649 ,116 358 31 126 8,301 199 27 199 27 22,381 2 3,377 2 3,772 1,229 1 1.077 2 10 10 10 20 18 19 7 208 68 13 2 44 304 579 * 206 1966 1965 199 81 3,144 42 3 67 302 541 1 1 11 1964 actual 1966 estimate M5 242 142 Undrawn authorizations as of June 30 3 300 250 3 829 3 1,010 3 746 4,294 4.816 4,556 4,645 5,055 1,500 989 249 1,500 950 266 1,500 5,170 5,773 6,000 3,000 1,000 3,000 1.000 3,000 1,000 3,501 905 79 750 750 750 132 1,765 483 33 144 M85 24 *435 22 *385 21 8,601 10,857 25,297 29,266 28,604 1,429 268 20 *Less than one-half million dollars. 1 Includes adjustments for unexpended balances of funds transferred from the appropriation "Removal of surplus agricultural commodities (sec. 32)," as follows: for 1964, —$16 million; 1965, —2 $4 million; and 1966, $8 million. Includes unfunded balance of contract authority of $1,871 million in 1964, $1,580 million in 1965, and $1,580 million in 1966. 3 Includes unfunded balance of contract authority of $2,911 million in 1964, $4,106 million in 1965, and $3,774 million in 1966. * Represents unused corporate debt authority. In most cases, a large part of the balances are obligated or reserved—to 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. Also included is an unused balance for the never-activated Federal Flood Indemnity Administration (HHFA). 7i50-000 O—65 24 370 THE BUDGET FOR FISCAL YEAR 1966 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. Expenditures and receipts.—Trust fund expenditures are estimated to be $32.9 billion in 1966, with receipts of $33.6 billion, as shown in table B-4. The transactions of the Federal old-age and survivors insurance fund are slightly more than half of the totals. Table B-4. EXPENDITURES AND RECEIPTS OF TRUST FUNDS (in millions of dollars) Receipts Expenditures Description Federal old-age and survivors insurance trust fund Federal disability insurance trust fund Hospital insurance trust fund Unemployment trust fund Railroad retirement account Federal employees' funds Highway trust fund Veterans life insurance funds Federal National Mortgage Association trust funds Other trust funds r Deposit funds Interfund transactions (table 14, note) Subtotal Government-sponsored enterprises Total. 1964 actual 1965 1966 1964 actual 1965 estimate 1966 estimate 15,285 1,341 15,966 1,518 18,629 16,043 1,211 16,162 1,222 3,707 1,139 1,262 3,645 657 3,336 1,185 1,380 4,101 632 3,345 1,248 1,558 3,875 502 4,288 1,192 2,465 3,540 711 4,013 1,289 2,670 3,649 713 17,553 1,455 600 3,982 1,387 2,747 3,954 -37 1.119 -567 -521 48 1,361 -47 1,402 1,376 1,825 -579 178 1,965 30 -599 —521 -579 -599 27,028 1,857 28,901 145 32,500 398 30,331 30,515 33,616 28,885 29,045 32,898 30,331 30,515 33,616 1,748 20 712 The trust funds include a small group of trust revolving funds (see table B-5) which, like the public enterprise funds, are stated on a net expenditure basis in figures used elsewhere in the budget. Table B-5. TRANSACTIONS OF TRUST REVOLVING FUNDS (in millions of dollars) Applicable rec« ipts Gross expenditures Description Civil Service Commission (employees' life insurance and health benefits) Federal National Mortgage Association.. _ All other trust revolving funds Total trust revolving funds Receipts from the public Receipts from other accounts _ 1964 1965 1966 1964 1965 1966 539 379 116 615 439 60 669 678 218 603 416 63 676 391 W 737 499 50 1,034 1,114 1,565 1,082 1,254 1,286 (793) (289) (960) (294) (987) (299) -easury financing.—The principal financing provided by the ral fund to the trust funds is interest paid on public debt investbs of the trust funds. The Government also contributes, as oyer, to the employee retirement funds. On occasion the general advances money to trusts, e.g., the unemployment trust fund, e repaid at a later date. Payments from the administrative ;et into the trust funds are shown in Table A-2 in the special psis, "Three Measures of Federal Financial Transactions." dances available.—Trust fund balances with the Treasury and securities are shown in table B-6. These balances are reserved irry out the purposes of the trust. Table B-6. TRUST FUND BALANCES (in millions of dollars) As of June 30 Description 1963 1964 1965 1966 stimate 1 old-age and survivors insurance trust fund.. 1 disability insurance trust fund al insurance trust fund doyment trust fund id retirement account I employees' funds ay trust fund ns life insurance funds 1 National Mortgage Association trust fund.. er trust funds t funds 18,967 2,394 19,726 2,264 19,922 1,968 6,277 3,805 13,641 747 6,726 237 1,136 1,767 6,859 3,859 14,844 641 6,779 13 1,420 2,334 7,535 3,963 16,134 189 6,860 13 1,436 2,382 18.846 1,675 580 8,172 4,103 17,323 268 7,070 13 1,296 2,352 Total. 55,698 58,739 60,400 61,695 i.—Excludes Government-sponsored enterprises. figures shown above differ somewhat from those on an authorization basis shown in table 10, The reconciliation is as follows: As of June 30 Balances available on an authorization basis (table 10) Unappropriated receipts: Available as needed on an indefinite basis.. Available for appropriation by Congress: District of Columbia United States Soldiers' Home Highway trust fund Unfinanced contract authorization Undrawn authorizations to borrow Balances available on a cash basis f963 f964 66,341 70,377 76 l965 56 l966 72,696 74,089 25 25 -114 -118 -107 -104 102 105 106 106 148 438 189 243 —9,167 —10,041 —10,325 —10,497 -1,687 -2,077 -2,183 -2,167 55,698 58,739 60,400 61,695 OVERNMENT-SPONSORED ENTERPRISES AND ANNEXED BUDGETS us budget includes with the trust fund expenditures certain factions of five Government-sponsored enterprises, stated on a 3asis. The transactions thus reported relate to investments in securities and debt issuance for which the Treasury acts as fiscal t; amounts equal to the net debt issuance or net disinvestments of enterprises are used as an estimate of net expenditures. Le budget appendix includes detailed budget statements with >ct to seven self-supporting activities, including three of the jrnment-sponsored enterprises just mentioned, and four other ities. (In the case of one of the latter, the Exchange stabilization , estimates for the years 1965 and 1966 are incomplete.) TableB-7 narizes the expenditures and receipts of these annexed budgets. 372 THE BUDGET FOR FISCAL YEAR 1966 Table B-7. EXPENDITURES AND APPLICABLE RECEIPTS OF ACTIVITIES COVERED BY ANNEXED BUDGETS (in millions of dollars) Applicable receipts Gross expenditures Description 1964 actual Milk Marketing Administration Comptroller of the Currency Exchange Stabilization Fund Board of Governors of Federal Reserve System Banks for Cooperatives Federal Intermediate Credit Banks Federal Deposit Insurance Corporation.-. 1 1964 actual 1965 1966 estimate estimate 13 19 13 17 13 17 11 13 16 97 13 16 0) 13 18 0) 7 1,179 5,049 9 1,170 5,161 7 1,126 1,088 9 9 1,181 4,854 203 4,950 203 5,354 9 9 1,237 5,586 2 6,378 6,865 6,231 6,280 6,791 17 6,378 Total 1966 estimate 1965 0) o 215 Not available. OTHER EXCLUSIONS FROM ADMINISTRATIVE BUDGET RECEIPTS The law permits certain collections to be credited as reimbursements to general fund appropriations. Such collections from outside the administrative budget accounts are identified in the detailed schedules of the budget appendix as reimbursements from "non-Federal sources/' distinguishing them from reimbursements within the administrative budget sector. The intragovernmental revolving and management funds also have some receipts from outside the Government. Table B-8 reflects the estimated amount of such collections which are credited to appropriations or to intragovernmental funds. Table B-8. REIMBURSEMENTS FROM NON-FEDERAL SOURCES TO APPROPRIATIONS AND INTRAGOVERNMENTAL FUNDS (in millions of dollars) Description Funds appropriated to the President Department of Agriculture Department of Commerce Department of Defense: Military Civil Department of Health, Education, and Welfare. Department of the Interior Department of Justice Department of State __ Treasury Department Atomic Energy Commission Federal Aviation Agency General Services Administration National Aeronautics and Space Administration Veterans Administration Other independent agencies Trust funds Total..... *Less than one-half million dollars. 1964 1966 1965 79 27 4 27 20 3 26 1,537 ,516 1.548 11 31 53 1 1 25 46 3 3 * 2 * 184 2,007 11 32 60 1 2 32 89 4 99 3 11 33 68 1 2 30 6 75 4 7 11 2 189 190 2,008 2,111 15 2 * 373 SPECIAL ANALYSES GROSS EXPENDITURES OF THE GOVERNMENT Table B-9 gives gjross expenditures, on a checks-issued basis for all Government-administered funds, except deposit funds; the latter are excluded since they are for the most part suspense accounts. Table B-9. GROSS EXPENDITURES OF GOVERNMENT-ADMINISTERED FUNDS (in millions of dollars) 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 Undistributed—special allowances Total. The total is derived as follows: Administrative budget expenditures (table 14) Trust fund expenditures (tables 14 and B - 4 ) : Total of such transactions Elimination of deposit funds included in total Intragovernmental transactions (table A - 2 ) : Total of such transactions Employees' contributions included in total Receipts from the public netted in conventional totals: Receipts of public enterprise funds (table B - l ) Receipts of trust revolving funds (table B-5) Reimbursements to appropriations and intragovernmental funds (table B-8) Substitution of annexed budgets: Gross expenditures of annexed budgets (table B-7) Elimination of net expenditures of Government-sponsored enterprises (included in table B-4) Total. 1964 actual 1965 estimate 1966 estimate 56,176 5,070 4,171 16,260 2,883 11,364 2,489 54,504 5,326 4,915 15,933 3,172 12,363 2,554 26,745 1,410 6,927 8,928 2,262 28,676 1,560 7,001 9,294 2,402 103 54,213 5,415 5,111 15,788 3,168 12,296 3,481 33,605 2,713 6,760 9,461 2.439 507 144,686 147,804 154,958 97,684 97,481 99,687 28,885 567 29,045 47 32,898 -30 -4,190 976 -4,234 1,039 -4,414 1,038 13,444 793 15,223 960 16,213 987 2,007 2,008 2,111 6,378 6,378 6,865 -1,857 -145 -398 144,686 147,804 154,958 BORROWING OTHER THAN FROM THE GENERAL FUND The Tennessee Valley Authority has authority to borrow $750 million from the public. The Federal Housing Administration has an indefinite authorization to issue short-term debentures in connection with its settlements. The Federal National Mortgage Association trust revolving fund has authority to issue its own debt instruments in an amount equal to 10 times the aggregate of its capital and retained earnings. The District of Columbia Armory Board was authorized to issue bonds for the financing of the stadium completed in 1961. A few funds in liquidation are retiring earlier debt is- 374 THE BUDGET FOR FISCAL YEAR 1966 suances. Government-sponsored enterprises also have their own borrowing authority. Some Government enterprise debt is guaranteed by the Treasury; some is not formally guaranteed. Borrowing and repayments pursuant to these authorities are shown in table B-10. A small portion of such borrowing is from other funds; the larger part is from the public and in effect reduces the Treasury borrowing from the public (see table 11 of part 2). Table B-10. DEBT ISSUANCES BY GOVERNMENT ENTERPRISES (OTHER THAN BORROWING FROM THE GENERAL FUND) (in millions of dollars) Description 1964 1965 End 1966, estimate 1966 ing Borrowing from the public: By public enterprise funds: Federal Housing Administration * Federal Farm Mortgage Corporation l Home Owners Loan Corporation 1 Tennessee Valley Authority By trust funds: District of Columbia Armory Board 1 Federal National Mortgage Association By Government-sponsored enterprises: Banks for cooperatives __ __ Federal intermediate credit banks Federal land banks Federal home loan banks Total, borrowing from the public 247 212 * * 35 -293 * * 40 -92 * * 75 * 295 -263 49 178 20 1,925 40 218 219 1,461 79 195 302 -417 52 200 181 160 629 2,710 3,426 3,947 1,923 -45 754 13,199 Borrowing from other funds: By public enterprise funds: Federal Housing Administration Federal National Mortgage Association By Government-sponsored enterprise funds: Banks for cooperatives Federal intermediate credit banks. Federal land banks Federal home loan banks -6 1 -23 -1 -2 -35 29 -30 * 12 -2 13 28 40 * 40 27 53 Total, borrowing from other funds -43 -1 68 257 1,880 -46 822 13,456 Total, debt issuances by Government enterprises _ _ 136 Note.— Negative figures represent net retirement of debt. '"Less than one-half million dollars. 1 Guaranteed by the Treasury (except for a small part of the HOLC obligations). INVESTMENTS IN U.S. SECURITIES A few public enterprise funds, a substantial number of trust funds and the Government-sponsored enterprises may purchase Treasury bonds or notes for investments. In addition, several funds acquire some of the debt issued by Government enterprises, and .the Federal Housing Administration acquires some of its own debentures as investments. These investment transactions in securities issued by the Government or its agencies are shown in table B-11. T JCJ\j±rx.xj he public debt bought by the various funds enters into the comition of the debt as shown in table 11 of part 2. Table B-11. PURCHASES OF U.S. SECURITIES BY GOVERNMENTADMINISTERED FUNDS (in millions of dollars) Transaction* Description 1964 actual 1965 estimate 1966 estimate End 1966, estimate outstanding ments in Treasury issuances (public debt): public enterprise funds: ederal Housing Administration ublic Housing Administration ederal Savings and Loan Insurance Corporation _ eterans Administration laritime Administration _ __ trust funds: ederal old-age and survivors insurance trust fund . _ . ederal disability insurance trust fund ospital insurance trust fund nemployment trust fund ailroad retirement account ederal employees' funds ederal National Mortgage Association ighway trust fund __ eterans life insurance funds istrict of Columbia municipal government funds 11 other Government-s ponsored enterprises: ederal Deposit I nsurance Corporation anks for cooperatives ederal intermediate credit banks ederal land banks ederal home loan banks_ Exchange stabilization fund __ Total, investments in Treasury issuances 62 24 -193 2 9 599 27 244 305 335 1,745 25 * 45 193 4 17,475 1,505 500 8,105 4.009 17,174 23 -3 692 267 -139 -296 573 69 1,190 -92 -69 22 670 101 1,272 -1,096 -338 500 617 142 1,178 -455 86 46 209 200 7,034 4 -5 4 9 -6 13 62 43 183 1 * 194 1 -1 212 1 3,343 46 111 50 1,700 * -2 -141 -153 164 100 1317 2,818 1,813 1,926 64,292 76 -64 1 68 124 99 ments in issuances of other funds: public enterprise funds: ederal Housing Administration ederal National Mortgage Association trust funds: ederal National Mortgage Association eterans Administration •istrict of Columbia municipal government funds Total, investments in issuances of other funds _ Total, investments in U.S. securities. -78 25 * 5 25 -2 -1 4 -43 -1 68 257 2,775 1,812 1,994 64,549 te.— Negative figures represent net reduction of investments. iss than one-half million dollars. s of end of fiscal year 1964; estimates for 1965 and 1966 are not available. SPECIAL ANALYSIS C CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH EMPLOYMENT TOTALS Between June 1963 and June 1964, Federal civilian employment in the executive branch was reduced by 21,000 to a total of 2,469,000. It is expected to be at approximately the same level in June 1965— a level 43,000 fewer than had been anticipated for that date a year ago. Decreasing the employment levels while providing ever-increasing levels of service required vigorous action by agency managers to improve manpower management and raise the level of employee productivity. The 1966 budget estimates that by June 1966 civilian employment will reach 2,496,000, up about 1% over the present estimate for June 1965 but still 15,000 below the number estimated last January as needed for June 1965. This estimate includes the substantial numbers of new employees needed for such recently enacted programs as the attack on poverty, and for the new programs being proposed by the President, such as hospital insurance, Appalachia, and elementary and secondary education. It also provides for manpower to meet increased workloads for the postal service, internal revenue service, public health, and many other programs. Table C-1. SUMMARY OF CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH 1965 1966 1966 over 1965 997,863 585,313 172,171 108,476 86,748 980,000 589,500 170,800 110,500 88,000 961,000 610,000 171,280 113,380 91,700 -19,000 20,500 480 2,880 3,700 38.5 24.4 6.9 4.6 3.7 83,293 269,867 85,500 68,700 91,500 70,400 6,000 1,700 3.7 2.8 34,897 17,353 313,254 36,800 16,150 317,230 5,820 38,550 17,400 321,110 9,360 1,750 1,250 3,880 3,540 15.1 2,469,235 2,469,000 2,495,680 26,680 100.0 1964 Department of Defense—Military and military assistance 1 Post Office Department Veterans Administration Department of Agriculture Treasury Department Department of Health, Education, and Welfare Department of the Interior Other: General Services Administration Tennessee Valley Authority All other agencies Other employment 3 Total. Increase or Percent decrease (—) of total As of June Agency 1966 .3 1 3 3 Consists of civilian employment for military functions and military assistance. Excludes 406 project employees for the public works acceleration program. Consists of Economic opportunity program, Appalachia program, and allowance for contingencies, all subject to later distribution. Approximately 70% of all Federal civilian employment is in three agencies: the Departments of Defense, Post Office, and the Veterans Administration. Another 15% is found in the Departments of Agri376 SPECIAL ANALYSES 377 culture; Treasury; Health, Education, and Welfare; and Interior. The remaining 15% is accounted for by more than 50 smaller agencies of the Government. The totals for all of the larger agencies are shown in table 12 in part 2 of this budget. The most significant changes in 1966 employment over 1965 are shown in table C-l. Of the total increase of 26,680, approximately 80%, or 20,500, is for the Post Office. The bulk of the added Post Office employment, approximately 15,000 in number, is required to reduce the inordinate amount of overtime which many postal employees have been regularly scheduled to work—in some cases amounting to a regular workweek in excess of 70 hours. An estimated 3 % increase in mail volume, offset by continued advance in productivity, accounts for the remaining increase in postal employment. In addition— • The Department of Defense anticipates a decline of 19,000 workers by June 1966 as a result of improvements in management, including the closing of unneeded facilities. • The increase for the Department of Health, Education, and Welfare employment is needed to service a greater volume of oldage, survivors', and dependents' insurance claims; to accelerate efforts to reduce air and water pollution; to provide more comprehensive drug regulation; and to implement the new proposals for hospital insurance for the aged. • Rising workloads in internal revenue operations and another step in the program to improve taxpayer compliance largely account for the increase in the Treasury Department. • The increase in the Department of Agriculture is principally to provide for uncontrollable workload in meat inspections, Farmers Home loan and guarantee activities, visitors to the National Forests, and to continue work on going watershed projects; it also provides strengthening of high priority research and forest land management and for necessary expansion of comprehensive river basin surveys. • The growth in the Department of the Interior is principally to take care of an increasing number of visitors to the National Parks, to provide for higher enrollment in Indian schools, and to expand power transmission lines in the Northwest to meet treaty commitments with Canada on the use of Columbia River water. • Other increases are in the General Services Administration to meet greater workloads in the operation of additional public buildings, and supply support activities; in the Tennessee Valley Authority to provide for the operation of power units being completed and for construction for new water resource facilities; and in other agencies to meet requirements for expanded services. Of the 26,680 increase estimated for 1966 in civilian employment in the executive branch, 15,000 are in permanent full-time positions and the remainder are in temporary, part-time, and intermittent jobs. Temporary positions (on a full-time basis) include those established for a limited period of less than a year and "career substitutes" of the Post Office (the number above the basic complement of permanent postal jobs). Part-time employees are those on a less-thanregular workweek. Intermittent employees are those who work on an irregular or unscheduled basis. 378 THE BUDGET FOR FISCAL YEAR 1966 Over nine-tenths of executive branch civilian employment consists of permanent full-time employees. The part-time and intermittent workers are included in the count of Federal employees each month, along with the permanent full-time workers, even though a number of them work as little as one day during the month. Table C-2. CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH BY TYPE OF POSITION OCCUPIED As of June 1963 actual Permanent full-time, employment Other employment,1 total Post Office Department Veterans Administration Department of Agriculture Department of the Interior Other agencies Total employment 1 1964 actual 1965 estimated 1966 estimated 2,231,519 2,228,296 2,226,120 2,241,131 (258,769) (240,939) (242,880) (254,549) 137,495 130,507 143,130 151,866 21,993 23,279 21,941 21,949 33,590 31,271 30,570 31,166 14,862 13,900 11,700 12,400 50,829 41,982 37,168 35,539 2,490,288 2,469,235 2,469,000 2,495,680 Consists of temporary, part-time, and intermittent employment. la total, Federal Government personnel includes both civilian employment and military personnel. Adding the latter to the civilian employment figures shows a grand personnel total for the executive branch of approximately 5,188,000 for June 1964, 5,159,000 for June 1965, and 5,170,000 for June 1966. In addition, the employment of the legislative and judicial branches in June 1964 was about 31,000. 1964 actual As of June 1965 estimate 1966 estimate Civilian employment in the executive branch Military personnel: Department of Defense . Reimbursable details to other agencies Treasury Department (Coast Guard) 2,469,235 2,469,000 2,495,680 2,685,161 1,111 32,248 2,656,008 1,331 32,275 2,640,266 1,364 32,778 Total executive branch personnel Legislative and judicial personnel 5,187,755 30,851 5,158,614 ===== 5,170,088 • Total 5,218,606 EMPLOYMENT TRENDS AND COMPARISONS With the continued growth in population, in national income, and in economic activity generally, there has been a concomitant growth in the volume of public services which the Government is called upon to render. In the fiscal year 1966, for example, the number of passports applied for will rise 10%; coins minted will increase 16%; subsidized school lunches served will be up 6%; takeoffs and landings at airports served by Federal towers will increase 6%; establishments with Federal meat inspectors will rise 6%; tax returns 379 SPECIAL ANALYSES filed will grow by 2%; the number of pieces of mail deposited in the Post Office will be up 3 % ; and customs inspections of packages will rise 4%. These and other increased demands for services can be accommodated only by increased productivity or additional workers, or a combination of both. Under the leadership of the President, a concerted effort has been underway to utilize Federal employees more effectively, to improve work methods and organization, and through the resulting improvements in productivity to hold Federal employment to the lowest possible levels. Over the past decade, in fact, Federal civilian employment has not risen in step with related factors. For example: • In 1954 there were 14.6 Federal civilian employees for every 1,000 people in the Nation; in 1964 this number was reduced to 12.9 and it is expected to decline still further to 12.6 in 1966. • In 1954, one out of every three public civilian employees worked for the Federal Government, and the other two for State or local government units. In 1964, this ratio was one out of four, and it will continue to drop. Table C-3. G O V E R N M E N T EMPLOYMENT AND POPULATION, 1942-66 Popul ation Government employment Year 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 __ 1954 1955 1956— 1957 1958 1959 1960 1961__ 1962 _ 1963-., _ 1964 3 1965 (estimated) 3____ 1966 (estimated) __._ 1 2 Federal United ployment States per 1,000 branch units all governments (thousands) population (thousands) (thousands) (thousands) mental units 2,272 3,274 3,304* 3,787 2,666 2,082 2,044 2,075 1,934 2,456 2,574 2,532 2,382 2,371 2,372 2,391 2,355 2,355 1 2,371 2,407 2,485 2 2,490 2 2,469 2,469 2,496 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 5,064 5,380 5,630 5,806 6,073 6,295 6,533 6,813 7,140 5,582 6,458 6,396 6,891 5.971 5,650 5,820 5,981 6,012 6,487 6,708 6,814 6,934 7,099 7,436 7,771 7,985 8,161 8,444 8,702 9,018 9,303 9,609 40.7 50.7 51.7 55.0 44.6 36.8 35.1 34.7 32.2 37.9 38.4 37.2 34.4 33.4 31.9 30.8 29.5 28.9 28.1 27.7 27.6 26.8 25.7 24.9 24.3 135,361 137,250 138,916 140,468 141,936 144,698 147,208 149,767 152,271 154,878 157,553 160,184 163,026 165,931 168,903 171,984 174,882 177,830 180,684 183,756 186,656 189,375 192,072 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 13.1 13.1 13.3 13.1 12.9 12.7 12.6 Includes piece-rate census workers employed for the decennial census. Excludes 7,41 f project employees in 1963 and 406 project employees in 1964 for the public works acceleration program. 3 An official projection of population and of State and local government employment for 1965 and 1966 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. 380 THE BUDGET FOR FISCAL YEAR 1966 Government Civilian Employment GEOGRAPHICAL DISTRIBUTION OF EMPLOYMENT Table C-4 presents data on the geographical distribution of Federal employment. Most Federal employees—almost 84%—work in the various States. A little over 10% are located in the Washington, D.C., metropolitan area (including nearby Maryland and Virginia). An additional 6% are in foreign countries and in U.S. territories and possessions. Federal employment in foreign countries has decreased by 3,100 since 1960. This has benefited our balance of payments position, as well as reducing costs. 381 SPECIAL ANALYSES Table C-4. FEDERAL CIVILIAN EMPLOYMENT BY GEOGRAPHICAL LOCATION (as of June 1964) Location Washington, D.C., metropolitan area Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa __ Kansas Kentucky Louisiana Maine Maryland 3 Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire.-* New Jersey Total 1 2 269,986 61,879 14,449 22,606 15,476 247,876 36,310 15,398 3,616 52,862 60,466 22,517 7,070 101,847 33,445 16,180 19,918 28,144 24,637 15,878 50,764 62,940 44,605 26,302 17.552 53,619 10,078 15,428 7,057 4,297 54,986 Location Total 1 25.183 181,947 30,569 6,854 92,712 44,775 21,963 131,869 12,603 23,596 9,309 36,961 119,897 28,788 3,080 70,152 46,718 11,740 21,651 5,318 New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode I s l a n d s South Carolina South Dakota Tennessee Texas Utah Vermont Virginia 3 Washington West Virginia Wisconsin Wyoming. __ Total United States Outside United States: Territories and possessions Foreign countries 2,343,873 Total Legislative and judicial 2,500,086 -30,851 Total employment, executive branch 4 33,571 122,642 2,469,235 1 2 Distribution by State is partially estimated. Includes 246,109 employees of the executive branch, and 23,877 of the legislative and judicial branches, 3 Excludes employment within the Washington, D.C., metropolitan area, which includes the District of Columbia, and the adjacent counties and cities in Maryland and Virginia. 4 Includes 92,175 foreign nationals classified as Federal employees; excludes 140,299 foreign nationals working for Department of Defense under contracts, agreements, or other arrangements with foreign governments which provide for the furnishing of personal services. PERSONNEL COMPENSATION AND BENEFITS Estimates of the Federal payroll and related costs are shown in table C-5. Direct compensation includes regular 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 payments; 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 to personnel. 382 THE BUDGET FOR FISCAL YEAR 1966 Table C-5. ESTIMATED PERSONNEL COMPENSATION AND BENEFITS [Fiscal years. In millions of dollars] Description Total civilian personnel costs: Direct compensation Personnel benefits Total _._ Civilian personnel costs of trust funds: Direct compensation Personnel benefits Total 1964 1965 1966 16.450 1.400 17.600 1,500 17,800 1,500 17.850 19,100 19,300 550 50 600 50 600 50 600 650 650 3.900 300 4.200 350 4.300 350 4.200 4.550 4,650 12,000 1.050 12.800 1,100 12.900 1,100 13.050 13,900 14,000 8.330 2.760 8.830 2.740 8,830 2,760 11.090 11,570 11,590 ! ._._ Civilian personnel costs of public enterprise funds (with their own receipts): Direct compensation Personnel benefits Total Remaining personnel costs (i.e., excluding trust and public enterprise funds): Direct compensation Personnel benefits Total MEMORANDUM Total military personnel costs: Direct compensation Personnel benefits Total 1 Includes annexed budget agencies. The obligations to be incurred for civilian personnel compensation and benefits in 1966 are estimated at $19.3 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). After deducting for the costs of such employees, the remaining personnel costs are $14.0 billion. Government pay scales for "blue-collar" workers have for many years been subject to administrative adjustment to correspond to pay for comparable work 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 1962, the Congress adopted the principle of comparability for such positions, and in pay scale changes effective in October 1962, January 1964, and July 1964, significant progress has been made toward the achievement of comparability. The compensation figures reflect such changes, as well as changes in the number of employees. There have also been changes in the position structure which have affected the average salary and the total compensation. Chiefly, these are the result of changes in the character of the Government's SPECIAL ANALYSES 383 workload and in the level of employee skills required to deal with it. For example, as a result of increasing specialization and greater emphasis on research and development, the number of engineers in the Federal service grew 116%, and the number of physical scientists 66%, in the period from 1954 through 1964. During this period, the Government's need for professional medical personnel rose 62% and for biological scientists, 34%. At the same time, the expanded efforts to reduce employment and to increase productivity—in many cases by shifting from manual to semiautomatic or automatic processing methods—have decreased the need for unskilled employees. For example, employees in the lowest three grades of the Classification Act went down in number from 203,000 to 164,000 between June 1960, and June 1964. These are all valid reasons for the increasing average salary of Government employees. Of course, vigilance is required to assure that Federal agencies do not adopt top-heavy organization and position structures, producing unwarranted increases in average salaries. Resistance to this tendency should be made easier as application of the comparability principle decreases the pressure to upgrade Federal jobs in order to make them competitive in the labor market. In the preparation of the 1966 budget, special attention has been given to salary trends and the number of positions in the higher grades. Special efforts have been made to avoid unjustified increases, and in some cases actual reductions have been planned. SPECIAL ANALYSIS D INVESTMENT, OPERATING, AND OTHER EXPENDITURES This analysis is designed to contribute to a greater understanding of Government activities by dividing Federal administrative budget and trust fund expenditures into several categories: (1) additions to Federal assets; (2) additions to State, local, and private assets; (3) developmental expenditures; (4) current expenses for aids and special services; (5) retirement and social insurance benefits (trust funds only); (6) other services and current operating expenses; and (7) unclassified (trust fund expenditures which do not properly belong in any of the other categories). In each category where applicable, national defense expenditures are reported separately from those for all other (civil) programs. Basically, this analysis distinguishes between two types of expenditures: Those yielding benefits primarily in the future and those providing benefits largely in the year in which they are made. The former are essentially outlays of an investment nature while the latter are principally current expenses for aids, special services, and social insurance benefits. Expenditures yielding benefits over a period of years are shown in the first three classes, while outlays providing mainly current benefits are grouped in the remaining categories. Expenditures from administrative budget funds are shown separately from trust funds in tables D - l and D-2. The sum of the budget and trust fund totals is greater than the total of cash payments to the public primarily because there are intragovernmental transactions. 1. Additions to Federal assets.—This category includes administrative budget expenditures for direct loans, such as loans to finance private housing construction and encourage home ownership, 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. (Most of these programs are included in the budget total on a net basis; that is, gross disbursements less receipts.) It also includes financial investments in certain international organizations and mixed-ownership enterprises, and expenditures for public works, for changes in major commodity inventories, for major equipment (including military equipment), and for the acquisition and improvement of real property and other physical assets. Trust fund expenditures in this category consist primarily of mortgage purchases (net of sales) by the Federal National Mortgage Association in support of its secondary mortgage market operations, and net loans by two Government-sponsored enterprises—banks for cooperatives and the Federal intermediate credit banks. 2. Additions to State, local, and private assets.—Federal outlays under this heading add to State, local, and private assets. Grant384 385 SPECIAL ANALYSES Table D-1. SUMMARY OF INVESTMENT, OPERATING, AND OTHER EXPENDITURES (in millions of dollars) Trust funds Administrative budget funds Description Additions to Federal assets: Civil National defense _ _ _ _ Additions to State, local, and private assets: Civil National defense Developmental expenditures: Civil National defense _ __ Subtotal, investment and developmental type expenditures: Civil . National defense __ 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 District of Columbia, deposit funds, and other unclassified items Allowances and contingencies Interfund transactions __ Grand total 1964 1965 1966 1964 1965 1966 4.722 17,617 3,704 15,621 3,123 15,172 213 391 560 1.550 22 1,554 22 1.713 18 5,389 1 4,056 1 4,107 * 6.798 8,681 8,123 8,394 10.394 8,091 50 63 61 13,070 26,320 13,381 24,038 15,231 23,280 5,652 1 4,510 1 4.728 16.811 1,595 17,645 1,282 17,792 1,068 1,415 481 1,427 805 1.445 976 20,961 21,816 24,883 m 10,765 3.522 26.266 11.286 3.738 26,841 11,594 3,586 27,230 -664 103 -833 97,684 97.481 * 5 780 -16 5 256 5 1,075 1,204 507 -600 -521 -579 -599 99,687 28,885 29,045 32,898 * Less than one-half million dollars. in-aid expenditures 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, wastetreatment works, watershed protection projects, schools in federally affected areas, and public facilities under the area redevelopment program and the temporary accelerated public works program. Federal expenditures which increase the value of privately owned assets are largely for the conservation and improvement of private farm land and water, for grants to States for the building of private hospitals and other health facilities, and for construction subsidies to the merchant fleet. Trust fund expenditures in this category, in addition to the highway program, include the net loans made by the Federal land banks and the Federal home loan banks (Governmentsponsored enterprises in which the Federal Government no longer holds any capital stock); these loans strengthen lending institutions which promote farming and individual home ownership. 750-000 0—65 25 386 THE BUDGET FOR FISCAL YEAR 1966 3. Developmental expenditures.—Federal expenditures of this type include outlays 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 spending shown in this category does not fully reflect the Government's contribution to the productivity of the economy, since it excludes 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. 4. Current expenses for aids and special services.—Expenditures classified under this heading provide aids or special services to certain groups—mainly 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 (a) administrative and other operating expenses attributable to investment-type programs which benefit specific groups, and (b) 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 they are not reflected in expenditures or cannot be readily measured. Examples of such indirect benefits include low interest rates on some loans and certain preferential tax treatments. Although expenditures in this category essentially provide a direct aid or special service yielding immediate benefits, some of the outlays included contribute indirectly to the Nation's future development. Among these are grants for slum clearance and urban renewal. 5. Retirement and social insurance benefits.—This category applies only to trust funds. It covers benefit programs which (a) are financed from special taxes or contributions and (b) provide insurance against the loss of income due to unemployment, retirement, disability, or death. It does not include Government employees' health and life insurance expenditures, which are in the form of subscription and premium payments to approved private companies. It also excludes such noncontributory programs as public assistance grants, military retired pay, and veterans disability and death compensation and pensions which are financed through the administrative budget. 6. Other services and current operating expenses.—The outlays reported under this heading support a wide range of activities. They consist mainly of current expenditures for: Pay and subsistence of SPECIAL ANALYSES 387 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. 7. Unclassified.—Certain trust fund expenditures represent financial transfers to other trust or budget accounts and cannot be properly classified into any of the categories described above. Advances and repayments between the Railroad retirement account and the Unemployment trust fund (for railroad unemployment benefits) are examples of such transactions. This grouping also includes the expenditures of the District of Columbia which are for the most part locally financed, but are accounted for as a Federal trust fund. Deposit fund transactions (net) are also included here. Recoverability of expenditures.—In general, Government expenditures 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 such activities are carried on through revolving funds, as in most loan programs, receipts are credited directly against the expenditures and only the difference is included in the expenditure total in the budget and in this analysis. In other cases, the returns are included as miscellaneous receipts to the Treasury rather than as offsets to expenditures. Whether recovered by specific revenues or not, investment and developmental expenditures in 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 these outlays, the potential gain in public revenues which will be forthcoming from them, nor the duration of future benefits and their discounted present value. Comparison with capital accounting, budgeting, and funding.—The purpose of this analysis is to provide a broad framework for understanding Federal expenditures, recognizing not only outlays to increase physical capital and financial assets, but also developmental expenditures which represent an investment in human capital. It does not distinguish precisely between capital and current items, although it does provide useful general magnitudes. Moreover, 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. Agencies record such allowances only for transactions where the data will serve program and management needs, as in the case of the public enterprise funds. As a result, it is not possible to determine directly from this analysis the net addition to the value of federally owned assets. 388 THE BUDGET FOR FISCAL YEAR 1966 This analysis is not a capital budget in the sense of a long-range program for the acquisition of assets, or a plan for separate financing of capital expenditures. 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. The U.S. budget, on the other hand, treats outlays for investment items and for other purposes alike in computing the budget surplus or deficit. Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars) Description 1964 actual 1965 estimate 1966 estimate Administrative Budget Funds ADDITIONS TO FEDERAL ASSETS Loans: Civil: To domestic private borrowers: Funds appropriated to the President: Economic opportunity program Department of Agriculture: Commodity Credit Corporation: Price support, supply, and related programs Rural Electrification Administration ~ Farmers Home Administration: Rural housing grants and loans Direct loans Rural housing insurance Agricultural credit insurance Other Department of Commerce: Area redevelopment fund and other Department of Health, Education, and Welfare: Defense educational activities and other Housing and Home Finance Agency: College housing loans Housing for the elderly Federal National Mortgage Association: Government mortgage liquidation Other .--- — : Federal Housing Administration Other :-.----Veterans Administration: Housing loans: Veterans direct loans Loan guarantee revolving fund Other Federal Home Loan Bank Board Small Business Administration Other agencies Total, to domestic private borrowers, civil _ '"Less than one-half million dollars. 17 35 705 330 -766 201 -117 203 126 84 144 77 48 -II -13 31 47 40 -9 8 24 32 42 112 133 29 -265 -42 154 127 47 -23 -556 -37 -2 -23 87 2 41 113 2 -204 25 1 12 1,503 -505 219 3 57 248 143 52 -59 -442 20 24 -713 -154 1 -9 -220 1 -813 389 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1964 actual 1965 estimate 1966 estimate Administrative Budget Funds—Continued ADDITIONS TO FEDERAL ASSETS—Continued Loans—Continued Civil—Continued To State and local governments: Housing and Home Finance Agency: College housing loans _ _ Public facility loans Urban renewal fund Low-rent public housing Other District of Columbia Other agencies _____ _ Total, to State and local governments, civil To foreign borrowers: Funds appropriated to the President: Economic assistance. Department of State: Loan to the United Nations Export-Import Bank of Washington Total, to foreign borrowers, civil Total, loans, civil. National defense: To domestic private borrowers: Funds appropriated to the President: Expansion of defense production _ _ _ Other agencies.__ ___ _ _ _. Total, to domestic private borrowers, national defense. _ To foreign borrowers: Funds appropriated to the President: Military assistance __ __ Total, loans, national defense Total, loans __ _ _ _. 91 44 24 -45 6 17 36 109 42 32 -3 5 33 45 131 44 27 2 15 42 52 173 264 312 957 4 -589 1,130 17 -520 1,180 371 628 820 2,047 386 318 -36 5 -1 2 -1 2 -31 1 1 35 35 47 4 36 49 2,051 423 367 65 50 62 80 80 25 10 -360 Other financial investments: Civil: Investments in quasi-public institutions, trust funds, and international institutions: Funds appropriated to the President: Economic assistance _ Inter-American Development Bank _ __ _ International Development Association. _ _ Internationa] Monetary Fund Housing and Home Finance Agency: Federal National Mortgage Association _ __ Other agencies _________ Total, investment in quasi-public institutions, trust funds, and international financial institutions 62 258 -66 -16 -42 -10 -17 94 347 98 390 THE BUDGET FOR FISCAL YEAR 19 66 Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1965 1964 1966 e Administrative Budget Funds—Continued ADDITIONS TO FEDERAL ASSETS—Continued Public works—sites and direct construction: Civil: Legislative branch Funds appropriated to the President: Economic opportunity program Public works acceleration _ _ Department of Agriculture: Forest Service Other Department of Commerce Department of Defense—Civil: Corps of Engineers Other Department of Health, Education, and Welfare: Public Health Service Other Department of the Interior: Bureau of Indian Affairs ._ __ __ National Park Service Bureau of Reclamation Bonneville Power Administration Other _ . Post Office Department _ _ Department of State __ _ Treasury Department: Coast Guard ____ Other Federal Aviation Agency ._ _ _ General Services Administration: Public buildings._ National Aeronautics and Space Administration Veterans Administration: Hospitals and other Tennessee Valley Authority Other agencies 12 25 26 25 30 75 75 81 2 108 10 95 16 26 21 22 867 12 961 15 979 20 6 19 25 25 27 34 61 62 66 59 72 65 262 30 28 43 250 35 42 50 11 28 230 71 32 39 44 19 16 * 6 97 221 438 11 149 34 82 220 524 82 141 44 2,626 2,888 2,887 1,012 113 989 150 912 175 202 224 170 Total, public works, national defense 1,327 1,363 1,258 Total, public works, sites and direct construction 3,953 4,251 4,146 -388 -326 -514 10 16 17 -378 -309 -497 _ _ _ Total, public works, civil National defense: Department of Defense—Military: Military construction. Family housing Other Atomic Energy Commission 27 11 11 119 406 93 157 45 Major commodity inventories: Civil: Department of Agriculture: Commodity Credit Corporation: Agricultural commodities _ _ __ Department of the Interior __ ._ ._ . Total, major commodity inventories, civil "Less than one-half million dollars. 391 SPEOIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued 1964 actual Description 1965 estimate 1966 estimate Administrative Budget Funds—Continued ADDITIONS TO FEDERAL ASSETS—Continued Major commodity inventories—Continued National defense: Funds appropriated to the President: Expansion of defense production __ _ __ Department of Defense—Military: Civil defense Other agencies __ __ -27 -48 -46 24 21 20 14 7 9 17 -14 -30 -361 -323 -528 40 39 25 18 34 69 28 24 27 90 38 9 122 156 164 14,861 168 12,989 196 12,789 175 Total, major equipment, national defense 15,029 13,185 12,964 Total, major equipment 15,151 13,340 13,128 25 48 26 58 25 60 Total, major commodity inventories, national defense Total, major commodity inventories Major equipment: Civil: Department of Commerce Post Office Department Treasury Department: Coast Guard Other agencies _ __ Total, major equipment, civil _. National .defense: Funds appropriated to the President: Expansion of defense production Department of Defense—Military __ Atomic Energy Commission _ Other physical assets—acquisition and improvement: Civil: Department of Agriculture Department of the Interior Housing and Home Finance Agency: Federal Housing Administration and other Veterans Administration _ _____ Other agencies. __ _ _ ___ * 74 160 128 -34 10 6 18 -14 8 210 236 153 167 1,073 160 890 160 771 Total, other physical assets, national defense 1,241 1,050 931 Total, other physical assets—acquisition and improvement. 1,450 1,287 1,085 22,339 19,325 18,296 Total, other physical assets, civil _ _ ___ National defense: Department of Defense—Military Atomic Energy Commission Total, additions to Federal assets '"Less than one-half million dollars. _.. 392 THE BUDGET FOR FISCAL YEAR 1966 Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1964 actual 1965 estimate 1966 estimate Administrative Budget Funds—Continued ADDITIONS TO STATE, LOCAL, AND PRIVATE ASSETS State and local assets: Civil: Funds appropriated to the President: Public works acceleration Department of Agriculture: Watershed protection Other Department of Commerce: Area Redevelopment Administration Bureau of Public Roads: Forest highways and other National Bureau of Standards Department of Health, Education, and Welfare: Vocational education Higher education facilities School construction in federally affected areas Hospital construction activities Waste treatment works construction Other Department of the Interior: Land and water conservation Other Federal Aviation Agency: Grants-in-aid for airports Housing and Home Finance Agency Other agencies Total, State and local assets, civil National defense: Department of Defense—Military. Total, State and local assets 234 241 123 43 14 43 16 45 20 11 37 12 41 30 40 * 39 62 66 2 27 66 74 11 36 64 37 68 80 36 16 65 5 8 6 9 57 19 13 33 13 60 63 42 603 22 638 22 791 18 625 660 23 28 22 96 513 20 86 104 443 22 80 84 387 28 125 36 6 40 1 137 46 12 41 3 43 145 46 15 51 4 946 916 922 1,572 1,576 ,730 Private assets—civil: Funds appropriated to the President: Public works acceleration Department of Agriculture: Soil conservation Agricultural stabilization and conservation Other. Department of Commerce: Merchant ships._. Department of Health, Education, and Welfa Higher education facilities Private hospital construction Health research facilities Other_____ National Science Foundation Other agencies Total, private assets. Total, additions to State, local, and private assets. *Less than one-half million dollars. 393 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued 1965 1964 Description 1966 Administrative Budget Funds—Continued DEVELOPMENTAL EXPENDITURES Education, training, and health: Civil: Funds appropriated to the President: Economic opportunity program Department of Agriculture: Extension Service __ Department of Health, Education, Welfare: Office of Education: Vocational education Payments to school districts Defense educational activities Proposed education legislation Other Vocational rehabilitation administration Public Health Service: Chronic diseases and health of the aged Community health National Institutes of Health Environmental health Indian health activities Other - Welfare administration: Grants, maternal and child welfare __ __ _ Other Other Department of the Interior: Bureau of Indian Affairs: Education and welfare _ _ _ Commercial fisheries _ ____ Department of Labor: Manpower development and training National Science Foundation Other agencies. _ Total, education, training and health, civil National Defense: Atomic Energy Commission Total, education, training, and health. _ . _ _ _ *Less than one-half million dollars. 224 85 838 86 34 284 126 61 291 152 43 74 104 121 139 321 182 595 95 151 35 66 250 51 107 242 52 230 253 37 60 1 47 60 2 67 63 1 89 25 12 106 33 13 176 28 15 76 * 80 89 * 108 218 265 113 21 118 25 139 31 1,571 2,115 3,829 16 _ 16 2,131 n 18 3,847 ___ _ 1,587 _ __- J 0 97 42 24 117 50 30 15 25 52 31 22 23 24 28 30 30 38 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 Department of Commerce: National Bureau of Standards Other 79 c 10 37 o y 134 394 THE BUDGET FOR FISCAL YEAR 1966 Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars) —Continued 1965 1964 Description e 1966 I a Administrative Budget Funds—Continued DEVELOPMENTAL EXPENDITURES—Continued Research and development—Continued Civil—Continued Department of Health, Education, and Welfare: Public Health Service: National Institutes of Health __ __ __ _ Other Office of Education and other _ Department of the Interior: Bureau of Mines Other . _ _ . . Federal Aviation Agency __ ________ National Aeronautics and Space Administration Veterans Administration __ National Science Foundation Other Total, research and development, civil National Defense: Department of Defense—Military: Military personnel: Research and development. _ Procurement: Test and evaluation support Research, development, test, and evaluation. _ Operation and maintenance Other Atomic Energy Commission Military assistance. _ _ ... Total, research and development, national defense._ __ _ Total, research and development.. - _ _ _ _ 637 66 37 595 70 50 686 86 67 23 66 63 3,733 32 147 25 81 95 4,376 40 159 25 89 74 4,694 40 49 58 207 66 5,083 5,844 6,389 263 80 7,021 43 12 1,236 9 278 70 6,700 40 13 1,270 8 265 70 6,400 36 8,665 8,378 8,073 13,748 14,222 14,461 23 26 15 19 26 28 38 30 43 32 38 45 47 31 44 144 164 176 15,479 16,518 18,484 240 26 242 19 312 17 117 87 * 112 103 9 137 95 Engineering and natural resource surveys—civil: Department of Commerce Department of Defense—Civil Department of the Interior: Geological survey Other Other agencies .. __ _ . . _. _ Total, engineering and natural resource surveys. Total, developmental expenditures . . . 10 1,292 CURRENT EXPENSES FOR AIDS AND SPECIAL SERVICES Agriculture—civil: Department of Agriculture: Agricultural Marketing Service: Removal of surplus agricultural commodities. _ Other Agricultural Stabilization and Conservation Service: Expenses _ ._ _ . . ._ Sugar Act Other "Less than one-half million dollars. 395 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1965 estimate 1964 actual 1966 estimate Administrative Budget Funds—Continued CURRENT EXPENSES FOR AIDS AND SPECIAL SERVICES—Continued Agriculture—civil—Continued Department of Agriculture—Continued Commodity Credit Corporation and special export programs: Sales for foreign currencies __ International Wheat Agreement _ __ __ Transfer to supplemental stockpile National Wool Act Price support, supply, and related programs - __ Losses on long-term sales contracts __ __ Other Agricultural Research Service: Salaries and expenses Other _. _ Farmers Home Administration: Direct loans Salaries and expenses Other Other . Other agencies Total, agriculture ___ Business: Civil: Department of Commerce: Patent Office . _ Maritime Administration: Ship operating subsidies and other __ Other Department of Defense—Civil: Corps of Engineers: Operation and maintenance Other . Post Office Department Treasury Department: Coast Guard: Navigation aids Federal Aviation Agency _ __ _ Civil Aeronautics Board: Payments to air carriers Other agencies __ __ __ ___ Total, business, civil National defense: Funds appropriated to the President: Expansion of defense production. _ Total, business __ __ Labor-civil: Department of Labor: Advances for employment services Other Other agencies Total, labor '"Less than one-half million dollars. _ _ __ 1,140 1,415 126 38 73 2,858 60 -15 1,247 30 80 32 3,385 204 -6 75 39 2,495 216 65 * 68 69 -28 -30 -30 39 2 74 5 41 3 11 21 45 10 84 11 5,181 5,635 4,738 27 30 32 197 58 230 63 209 63 109 -10 36 249 469 84 33 117 -11 108 266 487 87 39 121 -13 1,251 1,418 1,375 154 125 15 1,405 1,543 1,390 -2 7 21 8 4 29 28 -3 78 269 492 84 41 39 15 10 64 396 THE BUDGET FOR FISCAL YEAR 1966 Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1964 1965 1966 Administrative Budget Funds—Continued CURRENT EXPENSES FOR AIDS AND SPECIAL SERVICES—Continued Homeowners and tenants—civil: Housing and Home Finance Agency: Urban renewal___ Federal Housing Administration Public housing Other Federal Home Loan Bank Board Other agencies Total, homeowners and tenants. 211 -162 195 -5 -289 * -51 278 -201 223 7 -326 * 329 -225 -18 15 236 -3 -326 6 Veterans—civil: Department of Health, Education, and Welfare: Military service credits Veterans Administration: Hospitals and medical care Compensation and pensions Readjustment benefits Direct housing loans: Operating expenses Loan guarantee revolving fund: Operating expenses Veterans insurance programs General operating expenses Other agencies Total, veterans. 60 162 11 1,157 4,071 47 -23 17 -7 162 26 5,352 5.451 5,486 970 60 834 80 832 105 228 -112 24 211 -125 30 306 -120 1,170 1,030 1,158 1,441 1,157 1,053 2,612 2,187 2,210 21 56 70 57 358 181 97 30 191 103 60 202 100 100 1,127 3,961 69 -9 24 8 1,182 3,992 36 27 34 -35 158 31 International aids: Civil: Funds appropriated to the President: Foreign economic assistance Peace Corps Department of Agriculture: Commodity Credit Corporation and special export programs: Emergency famine relief to friendly peoples Export-Import Bank of Washington Other agencies Total, international aids, civil. National defense: Funds appropriated to the President—Military assistance Total, international aids. 35 Other aids and special services—civil: Funds appropriated to the President: Disaster relief Economic opportunity program Department of Agriculture: School lunch program Special milk program Food stamp plan '"Less than one-half million dollars. 397 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1965 1964 1966 Administrative Budget Funds—Continued CURRENT EXPENSES FOR AIDS AND SPECIAL SERVICES—Continued Other aids and special services—civil—Continued Department of Health, Education, and Welfare: Hospitals and medical care _ _ Public assistance Public assistance proposed legislation Assistance for Cuban refugees Other ___ _ _ __ Department of the Interior: Bureau of Indian Affairs. __ Post Office Department. __ _ _ _ Other agencies 52 2,944 52 2,952 31 31 51 453 11 26 31 69 481 12 ________ 3,902 4,102 4,956 Total, current expenses for aids and special services 18,406 18,927 18,860 138 68 146 64 137 26 49 28 52 26 57 47 39 54 40 54 -81 245 -111 32 276 -110 38 274 -143 533 588 440 11,889 123 69 12,180 130 104 12,124 130 * * Total, repair, maintenance, and operation, national defense- 12,081 12,414 12,358 Total, repair, maintenance, and operation of physical assets _-_- 12,613 13,002 12,797 65 76 88 28 31 4 Total, other aids and special services 54 3,242 214 21 34 57 496 21 OTHER SERVICES AND CURRENT OPERATING EXPENSES Repair, maintenance, and operation of physical assets (excluding special services): Civil: Department of Agriculture: Forest Service Department of Defense—Civil: Corps of Engineers Department of the Interior: Bureau of Land Management National Park Service Bureau of Reclamation Other . . General Services Administration: Real property activities. __ Tennessee Valley Authority . . __ - Other agencies _ _ Total, repair, maintenance, and operation, civil National defense: Department of Defense—Military: Operation and maintenance Family housing. __ __ Atomic Energy Commission . __ Other agencies 76 40 104 Regulation and control: The Judiciary Department of Agriculture: Agricultural Research Service Other Department of Health, Education, and Welfare: Food and Drug Administration Other "Less than one-half million dollars. 20 22 2 31 4 32 4 39 6 398 THE BUDGET FOR FISCAL YEAR 1966 Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1965 1964 1966 Administrative Budget Funds—Continued OTHER SERVICES AND CURRENT OPERATING EXPENSES—Continued Regulation and control—Continued Department of Justice: Legal activities and general administration Federal Bureau of Investigation Immigration and Naturalization Service Federal prison system Department of Labor. _ Treasury Department: Bureau of Customs. Other Federal Aviation Agency Interstate Commerce Commission _ National Labor Relations Board Other agencies. __ Total, regulation and control __ _ __ _ 61 143 67 67 162 72 68 164 73 52 28 53 29 55 30 74 78 78 36 38 24 37 42 26 22 86 26 91 39 42 27 28 97 780 848 841 161 104 42 2 189 104 54 2 13 177 93 47 2 154 35 5 470 513 509 32 49 560 28 45 4 32 49 594 31 47 5 32 48 606 26 47 5 718 757 763 124 134 148 71 70 74 2 5 41 46 63 32 104 65 41 91 7\ 88 73 438 453 456 Other operation and administration: Civil: International activities: Department of State: Foreign affairs administration International organizations and conferences Educational exchange Other U.S. Information Agency Foreign Claims Settlement Commission Other agencies Total, international activities _ Federal financial activities: Treasury Department: Bureau of Accounts Bureau of the Public Debt. Internal Revenue Service Other General Accounting Office Other agencies _ __ 149 _ _ _ _____ _ . Total, Federal financial activities _ _ _ . . . _ __ Other direct Federal programs: Legislative branch Department of Commerce: Weather Bureau __ Other Department of Defense—Civil _ _ __ Treasury Department: Claims, judgments, and private relief acts _ _ __ General Services Administration _ Other agencies Total, other direct Federal programs '"Less than one-half million dollars. * 154 6 6 399 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1964 actual 1965 estimate 1966 estimate Administrative Budget Funds—Continued OTHER SERVICES AND CURRENT OPERATING EXPENSES— Contin ued Other operation and administration—Continued Civil—Continued Retirement, unemployment, and accident compensation for Federal employees: Department of Labor: Unemployment compensation for Federal employees Employees' compensation claims and expenses Treasury Department: Coast Guard retired pay and Secret Service annuities Civil Service Commission: Special payments and annuities.. Other agencies 153 59 147 51 137 45 35 88 3 38 94 4 39 98 4 337 332 323 31 34 34 75 35 47 39 17 73 _. 63 38 45 38 34 47 39 24 Total, shared revenues and grants-in-aid -_ 247 246 254 Total, other operation and administration, civil^ . 2,210 2,301 2,305 13,932 177 63 -47 41 19 14,542 190 80 -456 48 23 14,535 195 82 -11 48 23 Total, other operation and administration, national defense _ _ _ 14,185 14,427 14,873 Total, other operation and administration 16,395 16,728 17,178 10,666 11,200 11,500 88 11 75 * 12 82 * 99 86 94 Total, interest 10,765 11,286 11,594 Total, other services and current operating expenses 40,553 41,865 42,410 Total, retirement, unemployment, and accident compensation for Federal employees Shared revenues and grants-m-aid: Department of Agriculture: Forest Service Department of the Interior: Bureau of Land Management Other Treasury Department District of Columbia: Federal payment Other agencies _ _ ._ National defense: Department of Defense—Military: Military personnel (excluding research and development) _ Family housing Civil defense Other Selective Service System __ Other agencies __ __ _ _ _ 37 Interest: On the public debt Other interest: On refunds: Treasury Department General Services Administration On uninvested funds: Treasury Department Total, other interest "'Less than one-half million dollars. 12 400 THE BUDGET FOR FISCAL YEAR 1966 Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1964 actual 1965 estimate 1966 estimate Administrative Budget Funds—Continued OTHER SERVICES AND CURRENT OPERATING EXPENSES—Continued 3 100 107 400 98,348 -664 98,314 -833 100,287 -600 97,684 97,481 99,687 -110 38 20 28 195 29 Allowance for Appalachia Allowance for contingencies Subtotal Interfund transactions Total, administrative budget funds Trust Funds (Includes deposit funds and Government-sponsored enterprises) ADDITIONS TO FEDERAL ASSETS Loans—civil: To domestic private borrowers: Housing and Home Finance Agency: Federal National Mortgage Association: Secondary market operations Veterans Administration: Life insurance funds Farm Credit Administration: Banks for cooperatives Federal intermediate credit banks _ _ Other agencies .__ Total, loans to domestic private borrowers 37 79 51 182 1 208 -3 228 -2 148 332 502 22 37 5 23 31 5 27 23 8 65 59 58 * * Public works—sites and direct construction—civil: Department of Agriculture: Forest Service Department of Defense—Civil: Corps of Engineers and other_ Other agencies _ Total, public works, sites and direct construction M ajor equipment—civil 1 Total, additions to Federal assets 213 391 560 3,569 4,004 3,776 248 1,572 302 -250 181 150 1,820 52 331 1 1 * ADDITIONS TO STATE, LOCAL, AND PRIVATE ASSETS State and local assets—civil: Department of Commerce: Highway trust fund and other Private assets: Civil: Farm Credit Administration: Federal land banks Federal home loan banks Total, private assets, civil National defense: Atomic Energy Commission Total, private assets 1,821 53 331 Total, additions to State, local, and private assets 5,390 4,057 4,107 "'Less than one-half million dollars. 401 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1966 1965 1964 Trust Funds—Continued DEVELOPMENTAL EXPENDITURES Education, training, and health—civil Research and development—civil: Department of Commerce: Bureau of Public Roads and other Other agencies Total, research and development * * 44 5 57 5 56 5 49 62 61 * * 50 63 61 1 1 1 34 18 -183 43 22 -194 44 25 -212 -131 -129 -142 453 466 556 6 -12 -17 621 7 606 7 477 7 628 613 484 8 14 14 481 805 976 489 819 990 300 70 * 311 82 323 88 20 66 2 11 68 3 11 104 3 11 450 475 549 1,896 2,232 2,420 Engineering and natural resource surveys—civil Total, developmental expenditures CURRENT EXPENSES FOR AIDS AND SPECIAL SERVICES Agriculture—civil Business—civil: Department of Commerce: Bureau of Public Roads Other Federal Deposit Insurance Corporation Total, business Labor—civil: Department of Labor: Unemployment trust fund: Grants for administration and other ___ Homeowners and tenants—civil _- - Veterans—civil: Veterans Administration: Life insurance funds and other. Department of Defense—civil Total, veterans—civil___ _ _ _ _ _ ______ __ International aids: Civil: Other agencies National defense: Funds appropriated to the President— Military assistance advances ___ Total, international aids Other aids and special services—civil: Department of Health, Education, and Welfare: Federal old-age and survivors insurance: Operating expensesFederal disability insurance: Operating expenses.__ -_ Other__ ___ Department of the Interior: Indian tribal funds Other Other agencies Total, other aids and special services Total, current expenses for aids and special services "Less than one-half million dollars. 750-000 0—65 26 >le D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued 1964 1965 1966 ice benefits—civil: irtment of Health, Education, and Welfare: deral old-age and survivors insurance deral disability insurance 14.579 1.251 15.253 1.416 17,888 1.640 Total, insurance benefits 15,830 16.669 19.528 Ioyment benefits—civil: irtment of Labor: Unemployment trust fund 2,835 2,705 2.671 etirement and social insurance benefits—civil: Service Commission: Civil Service retirement and disility -oad Retirement Board: Railroad retirement account r agencies 1,196 1,092 8 1,310 1,124 9 1,487 1.188 10 Total, other retirement and social insurance benefits 2.296 2,443 2.684 20.961 21,816 24.883 2 2 2 Ltion and control—civil: artment of Agriculture: Inspection, grading, and other ir agencies 26 4 28 4 35 4 Total, regulation and control 30 32 40 3 * 1 * -134 61 3 1 72i 1 4 -130 135 123 -64 2 124 -62 3 129 -67 2 61 65 64 lared revenues and grants-in-aid 14 15 16 Total, other operation and administration, civil 79 -50 214 Description Trust Funds—Continued IREMENT AND SOCIAL INSURANCE BENEFITS __ __ Total, retirement and social insurance benefits THER SERVICES AND CURRENT OPERATING EXPENSES , maintenance, and operation of physical assets (excluding ialservices)—civil operation and administration: tternational activities: Department of Justice: Alien property fund, World War II utner Foreign Claims Settlement Commission: War claims fund. Other agencies Total, international activities ederal financial activities ther direct Federal programs: Civil Service Commission: Civil Service retirement and disability fund: Refunds. _ Health benefits and life insurance Other agencies Total, other direct Federal programs !ss than one-half million dollars. 1 403 SPECIAL ANALYSES Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES (In millions of dollars)—Continued Description 1965 estimate 1964 actual 1966 estimate Trust funds—Continued OTHER SERVICES AND CURRENT OPERATING EXPENSES—Continued Other operation and administration—Continued National defense: Department of Defense—Military 5 5 5 Total, other operation and administration 84 -45 220 117 -11 261 403 19 50 35 418 355 399 20 10 50 165 432 411 66 10 30 Total, other services and current operating expenses UNCLASSIFIED Payments to other trust funds: Federal old-age and survivors insurance._ - _ _ _ Federal disability insurance Alien property fund Railroad retirement account Payments to general fund: Unemployment trust fund District of Columbia Federal National Mortgage Association—secondary operations Advances from District of Columbia Deposit funds Total, unclassified Subtotal Inter fund transactions Total, trust funds __ ___ 20 110 50 118 455 market . . . ___ -567 42 3 -47 _ 780 1,075 1,204 29,406 -521 29,624 -579 33,497 -599 28,885 29,045 32,898 SPECIAL ANALYSIS E FEDERAL CREDIT PROGRAMS INTRODUCTION Federal credit aids help achieve basic objectives of Government programs in six major areas. Most important are the loan, loan insurance, and loan guarantee programs for: (a) improvement of private housing and encouragement of home ownership; (b) development of agricultural and other natural resources; and (c) promotion of economic development abroad. In addition, Federal credit programs provide significant assistance for: (d) domestic business, e.g., small business generally, transportation, and commercial fisheries; (e) community development and public housing; and (f) higher education. Federal Credit Programs New Commitments These programs are intended to supplement, rather than to substitute for, private credit. In some cases, they fill gaps by providing or stimulating a type of credit not otherwise generally available to important groups of borrowers. Often they assume or share in risks which private lenders, at least initially, cannot reasonably be expected to undertake. Similarly, the terms on which the assistance is provided often are more liberal, with longer maturities, smaller downpayments, or lower interest rates than are generally available otherwise. In several programs, the loans are part of a package of Federal assistance. 404 SPECIAL ANALYSES 405 Such a package might also include, 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; or technical aids to help underdeveloped countries plan and construct basic transportation systems. Unlike almost all other Government programs, the initial expenditures involved for credit programs are largely or wholly repayable, so that the ultimate net cost is normally low. Some programs are fully self-supporting; in most others, the income from interest payments or insurance and guarantee fees covers most of the current expenses (including Treasury borrowing costs) and/or provides reserves for future losses. Customarily, administrative expenses are paid from income, but occasionally separate appropriations are made to finance them. Thus, these programs are mainly methods of helping borrowers to help themselves. COVERAGE OF SPECIAL ANALYSIS The number of types of assistance and the overall level of activity in Federal credit programs have been gradually rising—as new programs are authorized by the Congress and existing programs broadened. At the same time, important changes in emphasis are occurring, and programs established for temporary reasons in earlier years are liquidating their operations as outstanding loans are repaid or privately refinanced. The analysis this year presents separate information on major credit programs administered by seven cabinet departments and six other agencies. Separate information is presented for the first time on (a) the loans provided under the newly enacted nationwide antipoverty program, and (b) the various credit aids provided by the Public Health Service in the Department of Health, Education, and Welfare. In addition, the 1966 estimates reflect recent enactment of legislation (a) broadening credit aids for education by the Department of Health, Education, and Welfare, (b) authorizing urban renewal rehabilitation loans by the Housing and Home Finance Agency, (c) providing for issuance and guarantees of participations in pools of mortgage loans by the Housing and Home Finance Agency and the Veterans Administration, and (d) broadening the existing credit assistance available from the Housing and Home Finance Agency, the Small Business Administration, and the Agency for International Development.1 Finally, the totals include preliminary estimates of the probable effect of proposed legislation to authorize: (a) Federal insurance or guarantees of private credit to aid rural housing, land development, college students, businesses in depressed areas, group medical practice, and Indians and Indian enterprises; and (b) sales of participations in pools of small business loans by the Small Business Administration.2 The analysis includes (in tables E-2 and E-3) the total amounts, but no detailed information, on outstanding loans and guarantees and on net expenditures for numerous smaller or relatively inactive 1 See appendix A for further details. 2 Supplementary material containing brief summaries of each of the major programs (including the major quasi-public credit programs) with emphasis on current developments is available on request from the Bureau of the Budget. 406 THE BUDGET FOR FISCAL YEAR 1966 credit programs administered by seven departments and five other agencies; these account for about 0.3% of outstanding direct and guaranteed loans. Loan programs of important quasi-public agencies are excluded from tables E - l to E-5, but their outstanding loans are shown in table E-6. The analysis excludes borrowing from the Treasury by other Federal agencies, whether for loans or other programs. NEW COMMITMENTS New commitments are the best single measure of the short run trends in most Federal credit programs. They also give the best Table E-l. NEW COMMITMENTS FOR MAJOR FEDERAL CREDIT PROGRAMS CLASSIFIED BY TYPE OF ASSISTANCE, MAJOR AGENCY OR PROGRAM (in millions of dollars) 1964 actual 1965 Guar- Direct estimate Direct 202 14 397 576 155 9 53 149 7 60 5 100 28 2 47 16 142 2,452 Department of the Interior _ Department of State: Loans to United Nations . . . ... Agency for International DevelopmentTreasury Department: Loans to District of Columbia Housing and Home Finance Agency: Community Facilities Administration _ _ Urban Renewal Administration Federal National Mortgage AssociationFederal Housing Administration Public Housing Administration Veterans Administration _ Export-Import Bank of Washington.. ___ Interstate Commerce Commission Small Business Administration Total by type of assistance Grand total 1 12 4 1,930 21 53 567 128 166 228 97 516 778 1,924 211 317 26 12 110 Public Health Service 17 1,844 217 358 12,973 859 3,157 1,326 21 23 6,888 21,516 28,404 insureo* loans 627 168 444 207 110 470 1,153 14 397 478 2,283 199 20 90 2 28 16 218 302 29 15 M00 20 1,984 301 610 38 35 401 Guar- 38 21 781 351 540 Direct insured loans insured loans Office of Economic Opportunity Department of Agriculture: Commodity Credit Corporation _ Rural Electrification Administration _ Farmers Home Administration _ Department of Commerce: Area Redevelopment Administration Maritime Administration _ _____ Department of Defense: Defense production guarantees. Military assistance credits. Department of Health, Education, and Welfare: Office of Education Guar- 1966 estimate 495 689 300 13,800 761 3,177 1,911 3 39 7,138 23,250 30,388 626 232 688 194 110 441 1,083 752 1,285 14,179 862 2,900 1,801 392 66 7,290 25,503 32,793 1 Preliminary estimate, depending on availability of guarantees from non-Federal sources. SPECIAL ANALYSES 407 advance indication of trends in the economic 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 or other commitments which do not later result in actual credit extensions, as well as the unguaranteed portions of loans partially covered by Federal guarantees. Direct loans.—New commitments of $7.3 billion estimated for direct loans in 1966 are $0.4 billion higher than the actual commitments made in 1964. The largest increases expected are for mortgage purchases by the Federal National Mortgage Association and for loans to foreign borrowers by the Export-Import Bank. The Bank and the Agency for International Development will make over 40% of new direct loan commitments in 1966; this assistance will be an essential part of our economic development effort abroad. The Commodity Credit Corporation expects to curtail sharply its direct lending and to rely more heavily in both 1965 and 1966 on guaranteed bank loans to finance its price-support operations. Guarantees and insurance.—New commitments for guarantees and insurance of private loans will continue to rise to an estimated $25.5 billion in 1966, almost 75% more than the actual commitments made 5 years previous (in 1961). Over half of the total new commitments will be for housing loans insured by the Federal Housing Administration. Of the total guarantee commitments, $1.7 billion in 1965 and $3.5 billion in 1966 represent guarantees by the Federal National Mortgage Association and the Export-Import Bank of certificates of participation in pools of loans. Other major increases in guarantee commitments reflect mainly new or proposed programs by the Farmers Home Administration, the Agency for International Development, and military assistance credit by the Department of Defense. Overlapping commitments.—The total estimated commitments in 1966 of $32.8 billion include several cases where two or more types of Federal assistance are provided for the same borrower or on the same property or project at different stages in the financing process. Guarantees of certificates of participation in pools of loans represent the most important type of such overlapping. Other major examples include: (a) commitments by the Federal National Mortgage Association for purchase of mortgages insured or guaranteed by other Federal agencies, and (b) commitments by the Public Housing Administration at successive stages in the financing of local low-rent public housing. OUTSTANDING DIRECT AND GUARANTEED LOANS The best index of the level of Federal credit programs over a period of years is provided by the total outstanding direct and guar- 408 THE BUDGET FOR FISCAL YEAR 19 6 6 anteed loans. By the close of 1966, these will total $131.4 billion for major programs, and with numerous smaller programs, $131.9 billion. Table E-2. O U T S T A N D I N G DIRECT LOANS, AND GUARANTEED A N D I N SURED LOANS FOR MAJOR FEDERAL CREDIT P R O G R A M S CLASSIFIED BY AGENCY OR PROGRAM (in millions of dollars) 1964 actual Agency or program Direct 1965 Guaranteed Direct 1 Guaranteed 71 113 17 53 377 insured loans 1,343 131 101 593 202 86 5 560 19 85 70 32 21 132 55 126 M00 10 446 543 18 772 43 78 91 108 77 124 8,996 288 152 3,751 121 3,784 835 ~788 "578" 835 406 4 112 7,410 Guaranteed 1,524 4,270 2,019 1,658 4,068 1,949 68 Direct i 52 17 2,437 3,869 1,759 1966 estimate insured loans insured loans Office of Economic Opportunity Department of Agriculture: Commodity Credit Corporation Rural Electrification Administration Farmers Home Administration Department of Commerce: Area Redevelopment Administration Maritime Administration Department of Defense: Defense production guarantees Military assistance credits Department of Health, Education, and Welfare: Office of Education Public Health Service.. .... Department of the Interior: Reclamation loans Department of State: Loans to United Nations Agency for International Development._. Treasury Department: Loans to District of Columbia Foreign loans i Housing and Home Finance Agency: Community Facilities Administration.-. Urban Renewal Administration Federal National Mortgage Association. Federal Housing Administration Public Housing Administration Veterans Administration Export-Import Bank of Washington Interstate Commerce Commission Small Business Administration estimate 119 10,650 565 192 3,658 45,474 4,718 30,484 1,936 204 81 2,296 182 2,039 550 46 1,516 2,187 15 1,143 1,488 300 48,685 5,109 30,350 2,906 207 90 2,673 231 1,574 555 47 649 1,826 15 923 1,856 1,555 52,762 5,641 29,700 3,642 208 122 85,623 22 31,676 384 91,741 22 32,338 405 99,093 30 31 326 85,645 32,060 91,763 32,743 99,123 1,981 151 2,623 596 48 1,694 2,706 15 924 Total by type of assistance: Major agencies or programs Other agencies or programs 30,972 354 All agencies. 1,180 Preliminary estimate, depending on availability of guarantees from non-Federal sources. Outstanding direct loans will rise by $0.7 billion during 1965 and by about the same amount in 1966. This relatively gradual rise over the 2 years is the net result of major increases and decreases by several large programs. Loans by the Agency for International Development will rise by an estimated $3.2 billion to a total of $10.6 billion in 1966, almost a third of all direct loans outstanding. Other major SPECIAL ANALYSES 409 increases occur in the college housing loan program administered by the Community Facilities Administration and in the loan programs of the Rural Electrification Administration and the Farmers Home Administration. On the other hand, the present emphasis on stimulating private investment in these programs, either by direct sales or by sales of participations in pools of loans, is expected to produce net reductions of $3 billion over the 2-year period in outstanding loans of the Federal National Mortgage Association, the Veterans Administration, and the Export-Import Bank. For the same reason the Small Business Administration, which normally increases its loan portfolio, will have a sharp reduction in 1966. The Commodity Credit Corporation will have a sizable decline in 1965 and a smaller one in 1966. Guaranteed and insured loans outstanding are expected to rise by $13.5 billion over the 2-year period, the most rapid increase in any comparable period. The mortgage and property improvement loans insured by the Federal Housing Administration will continue to account for more than half of the estimated $99.1 billion total outstanding in 1966. Outstanding guaranteed loans of the Veterans Administration will decline only modestly despite the gradual exhaustion of eligibility by veterans. About $5 billion of the outstanding guarantees by the end of 1966 by all Government agencies will be guarantees of certificates of participations in pools of loans, or guarantees of individual loans sold with recourse. These represent merely a shift in the nature of the credit assistance provided rather than a net increase in the total Federal risk. The amounts shown include both the guaranteed and unguaranteed portion of outstanding loans in order to give a clearer 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 1966, the Government's liability will be about $13.4 billion lower than the amount of guaranteed loans outstanding under that program DISBURSEMENTS AND REPAYMENTS Direct loans can have a major budgetary impact, since the difference between disbursements and repayments represents net expenditures or receipts. On the other hand, except to the extent that Federal guarantees and insurance of private loans help to minimize direct loans or to increase sales of such loans, they ordinarily have only a minor effect on Federal expenditures. Net expenditures for Federal credit assistance, in total, are relatively small, compared to the economic impact of these programs. Expenditures of all Government lending programs (with the major exception of loans from trust funds or by quasi-public agencies) are included in the administrative budget totals. In most currently active loan programs, collections are offset directly against expenditures. In the case of the Rural Electrification Administration, collections on loans are deposited to miscellaneous receipts, but legislation is proposed to put this program on a revolving fund basis beginning in 1965. In the case of foreign loans, disbursements and 410 THE BUDGET FOR FISCAL YEAR 1966 Table E-3. DISBURSEMENTS AND REPAYMENTS FOR MAJOR FEDERAL CREDIT PROGRAMS CLASSIFIED BY AGENCY OR PROGRAM (In millions of dollars) 1964 actual Agency or program Office of Economic Opportunity Department of Agriculture: Commodity Credit Corporation Rural Electrification Administration Farmers Home Administration Department of Commerce: Area Redevelopment Administration Maritime Administration Department of Defense: Defense production guarantees Military assistance credits Department of Health, Education, and WelfareOffice of Education Public Health Service Department of the Interior Department of State: Loans to United Nations Agency for International Development.. Treasury Department: Loans to District of Columbia Foreign loans Housing and Home Finance Agency: Community Facilities Administration. _. Urban Renewal Administration Federal National Mortgage Association.. Federal Housing Administration Public Housing Administration Veterans Administration Export-Import Bank of Washington Small Business Administration Total. Net addition to loans: Major agencies or programs Other agencies or programs Adjustment for repayments going directly into miscellaneous receipts Adjustment for net expenditures in foreign currencies, deduct Adjustment for net extensions of sales credit and other, deduct Total administrative budget expenditures 1 1 1965 estimate Repayments Disbursements Disbursements Repayments 17 1966 estimate Disbursements Repayments 37 3,235 330 739 2,530 155 524 1,938 355 858 2,705 154 661 2,297 365 1,036 2,415 162 960 47 9 1 21 2 19 73 3 15 18 84 13 50 62 7 14 97 12 65 7 94 5 47 139 13 13 no 12 221 25 18 4 1,547 3 168 17 ,725 3 139 43 27 89 58 27 33 42 2 93 387 150 136 211 457 546 398 292 83 127 402 253 502 482 988 178 386 208 242 201 384 497 523 434 61 176 821 238 387 675 1,043 215 434 266 283 194 394 466 601 366 57 215 784 174 392 ,333 961 586 8,755 6.597 8,190 7,435 9,035 8,373 3 162 1,816 2,158 23 755 31 662 25 426 228 305 538 562 598 29 27 423 367 18 2,051 See special analysis D, p. 389. repayments in foreign currencies are included in the analysis, though they are not included in budget expenditures and receipts. Also included is sales credit extended to buyers of federally owned assets, even when no budget expenditures are involved. 411 SPECIAL ANALYSES Gross loan disbursements of major credit programs are expected to decline in 1965, and then to rise in 1966 to $9 billion, about $0.3 billion above actual outlays in 1964. Repayments, however, will rise continuously. The $8.4 billion total estimated for 1966 represents an increase of $1.8 billion over 1964. As a result, net expenditures will decline from $2.2 billion in 1964 to $0.7 billion in 1966. After adding in net expenditures for other credit programs and adjusting for repayments directly to miscellaneous receipts, for loans in foreign currencies, and for sales credit extensions involving no budget expenditures, net budget expenditures for loans in 1966 will amount to only $367 million. The steep reduction in the net budgetary impact expected in 1965 and 1966 results mainly from the increased substitution of private for public credit primarily by the Federal National Mortgage Association, the Veterans Administration, the Farmers Home Administration, and the Small Business Administration. PRIVATE PARTICIPATION IN CREDIT PROGRAMS The relative importance of public and private credit varies greatly, for different types of credit. Direct loans outstanding to domestic private borrowers amounted to 2.0% of the estimated private debt of $778 billion outstanding on June 30, 1964. 'Private loans partly or wholly guaranteed by Federal agencies comprised 9.9% of the total private debt on that date. Federal participation was much higher in agricultural and housing credit; on the other hand, direct or guaranteed loans provided only a fraction of 1% of the total credit otherwise used by most types of private businesses. Table E-4. SALES OF LOANS TO NONFEDERAL BUYERS AND OTHER REPAYMENTS FOR MAJOR FEDERAL CREDIT PROGRAMS CLASSIFIED BY AGENCY OR PROGRAM (in millions of dollars) 1964 actual Agency or program Sales Department of Agriculture: Farmers Home Administration Housing and Home Finance Agency: Community Facilities Administration: College housing loans Public facility loans Other Federal National Mortgage Association: Special assistance functions Management and liquidating functions___ _ __ _ Federal Housing Administration Public Housing Administration.__ Veterans Administration: Direct loans Loan guarantee revolving fund Export-Import Bank of Washington Small Business Administration All other major credit programs Total 1965 estimate Other repayments Sales Other repayments 1966 estimate Sales Other repayments 46 478 135 526 165 795 44 10 20 1 9 20 5 22 2 12 15 5 23 2 12 85 117 550 70 375 44 59 140 253 452 39 5 3 140 233 384 174 20 132 154 392 134 208 436 5 95 45 552 173 3,185 280 257 905 25 3 87 51 138 190 3,353 778 450 761 365 57 49 200 221 3,184 1,077 5,520 2,227 5,208 3,108 5,265 50 412 THE BUDGET FOR FISCAL YEAR 1966 Federal credit programs attempt to obtain private participation to the maximum extent feasible. Guarantees and insurance of private credit account for three-quarters of all new commitments and for about the same proportion of outstanding Federal credit assistance. These proportions are expected to increase slightly in 1965 and 1966. Emphasis upon private participation is reflected both in the basic statutes and in the administrative policies of the major credit programs. Often direct loans are prohibited except when the borrower cannot otherwise obtain the funds from other sources on reasonable terms. In two major programs (the Public Housing Administration and the Urban Renewal Administration) the direct loans made are customarily refinanced in whole or in part by private loans guaranteed by th. e Federal agency. In four other programs (college housing and public facility loans made by the Community Facilities Administration, b usiness loans by the Small Business Administration, and foreign loans b y the Export-Import Bank), administrative policies emphasize joint participations between private lenders and the Government lending agencies. In the first two of these four programs, the borrowers are required to advertise all offerings of their obligations publicly and the Community Facilities Administration purchases only those which private lenders are unwilling to buy at predetermined interest rates. In the past 2 years, a Government-wide effort has been made to sell existing loans from the portfolios of Federal agencies to private lenders and to encourage private refinancing. During fiscal year 1964 about $1.1 billion of such sales were consummated. In 1965 and 1966, these sales are estimated to increase to $2.2 billion and $3.1 billion, respectively. These figures exclude not only regular amortization and prepayments of principal, but also sales made as part of the usual process of guaranteeing or insuring loans and sales from one Government agency to another agency. The salable portions of the loan portfolios are concentrated mainly, but not exclusively, in the Export-Import Bank and in the various mortgage and other housing loans. Most of the loans held by other Federal credit programs have interest rates, maturities, or other terms which make them currently unattractive to private lenders. Legislation was enacted in September 1964 to authorize sales of certificates of participation in pools of loans owned by the Federal National Mortgage Association and the Veterans Administration, and the first successful sale has already been completed. Similar legislation is being proposed for the Smali Business Administration. 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-5 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 previously outstanding loans, or on loans covered by commitments made in earlier years. 413 SPECIAL ANALYSES Table E-5. INTEREST RATES AND MATURITIES FOR MAJOR ACTIVE CREDIT PROGRAMS CLASSIFIED BY AGENCY OR PROGRAM, DECEMBER 1964 Direct loans Agency or program Interest rate (percent) Maturity (years) Office of Economic Opportunity _ __ 15-30 Department of Agriculture: Commodity Credit Corporation ^ 31/2-4 Rural Electrification Administration__ Farmers Home Administration__ 3-5V4 1-50 Department of Commerce: Area Redevelopment Administration _ 25-40 3y 4 -4 Maritime Administration. _ _ _ 17-20 31/2-6 Department of Defense: Defense production guarantees _ Military assistance credits. _ _ __ 3-10 0-5 Department of Health, Education, and Welfare: Office of Education _ 3-4% 3 11-50 12-19 Public Health Service Department of the Interior: Bureau of Reclamation. _ _ 0-4'/s 30-50 Department of State: Loan to United Nations 2 25 3 Agency for International Development __ _ 3-40 /4-8 Treasury Department: Loans to District of Columbia 30-40 Housing and Home Finance Agency: Community Facilities Administration. _ _ __ _ 0-5 1-50 Urban Renewal Administration _ . . . 1/2-40 3-J/8 Federal National Mortgage Association. _ __ _ __ _ 10-40 Federal Housing Administration. _____ 1/2-50 4-6 Public Housing Administration _ 4'/s V4-V2 Veterans Administration _ _ _ _____ 4-6J/2 30 II/4-I8 Export-Import Bank of Washington. _ __ . _ __ Interstate Commerce Commission 1-30 Small Business Administration __ 3-5'/2 n Guaranteed and insured loans Interest rate (percent) Maturity (years) 24.1 33-50 17-20 4'/r6 V2-2 10 5-6 7-20 Tft' 4'/2-8 * 4'/2-5'/2 5-8 1/2-40 1-10 i/2-50 1/4-40 30 0-5 1-15 1-30 1 2 3 Program not yet operative. 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 4 Peace Corps service. In addition, property improvement loans are insured for $4 to $5 discount per year (equivalent to cover 8% simple interest), and with maturities of 6 months to 7 years. Interest rates charged on direct loans vary greatly 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 varying 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. These sometimes 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. 414 THE BUDGET FOR FISCAL YEAR 1966 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, interest rates on insured loans are deliberately set below the market rate and a secondary market provided to assure the willingness of the private lender to make the initial loans; for example, the Federal Housing Administration 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, and the Federal National Mortgage Association purchases all of such mortgages. 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. When borrowers are acquiring assets yielding income or tangible benefits over a long period of years, long-term loans reduce periodic installments and make it possible for borrowers to undertake such acquisitions with reasonable assurance of repayment. QUASI-PUBLIC CREDIT PROGRAMS The Federal Government also has certain responsibilities for the credit programs of mixed-ownership corporations and other public agencies operating in whole or in part with private funds. Table E-6 Table E-6. OUTSTANDING LOANS FOR MAJOR QUASI-PUBLIC CREDIT PROGRAMS CLASSIFIED BY AGENCY AND PROGRAM (in millions of dollars) Outstanding at end of fisca, year Agency Mixed ownership enterprises and trust funds: Farm Credit Administration: Banks for cooperatives Federal intermediate credit banks Housing and Home Finance Agency: Federal National Mortgage Association (Secondary market operations trust fund) Veterans Administration: National service life insurance fund U.S. Government life insurance fund Subtotal, mixed ownership and trust funds ______ Other major quasi-public credit programs: Farm Credit Administration: Federal land banks Federal Home Loan Bank Board: Federal home loan banks. Federal Reserve, Board of Governors: Federal Reserve banks __ Subtotal, other quasi-public credit programs Total [ Estimates are not available for 1965 and 1966. 1963 1964 1965 1966 701 2,293 758 2,504 832 2,741 887 2,990 2,138 2,021 2,038 2,233 463 98 506 93 539 88 573 84 5,693 5,882 6,238 6,767 3,198 3,270 3,516 4,769 3,938 4,400 4,371 4,600 139 301 6,607 8,586 12,300 14,468 C) SPECIAL ANALYSES 415 summarizes the outstanding loans for eight institutions or groups of institutions of this type which have important lending operations. Outstanding loans of the five groups of mixed-ownership enterprises and trust funds for which estimates of future fiscal years as well as actual data on the past years are available will increase from a total of $5.9 billion in 1964 to an estimated $6.8 billion by the end of the fiscal year 1966. Most of the anticipated increase is in the operations of the Federal intermediate credit banks. The three other groups of institutions, which are privately owned, increased their outstanding loans from $6.6 billion at the end of 1963 to $8.6 billion on June 30, 1964, primarily because of the $1.5 billion increase in advances by the Federal home loan banks during 1964. While no further net increases in these advances are anticipated during 1965-66, the outstanding loans of the Federal land banks are expected to rise by over $0.8 billion. No data are available on the probable trends in discounts and advances by the Federal Reserve banks. APPENDIX A N E W AND BROADENED FEDERAL CREDIT PROGRAMS IN 88TH CONGRESS, SECOND SESSION 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. Office of Economic Opportunity (and other agencies) A. Economic Opportunity Act of 1964—Public Law 88-452 Authorizes (1) loans up to $2,500 to low-income rural families to help effect permanent increases in income; (2) loans to cooperative associations predominantly serving such families; and (3) loans, participations, and guarantees by the Small Business Administration up to $25 thousand to small businesses meeting specific requirements of the act. II. Department of Health, Education, and Welfare A. Hospital and Medical Facilities Amendments of 1964—Public Law 88-443 Broadens authority for grants and direct Federal loans to modernize (as well as construct) public and other nonprofit health and medical facilities. B. Nurse Training Act of 1964—Public Law 88-581 Authorizes (1) repayable contributions to public and private nurse training institutions to finance 90% of student loan funds; (2) maximum annual loans of $1 thousand per student; and (3) partial forgiveness for those pursuing a professional nursing career. C. Amendment to title VII of the Public Health Service Act— Public Law 88-654 Extends the student loan provisions to students of optometry. D. National Defense Education Act Amendments, 1964—Public Law 88-665 416 THE BUDGET FOR FISCAL YEAR 1966 (1) Increases the annual authorization for student loan funds and the amount of loans for individual students, and (2) broadens the deferment and forgiveness features. III. Department of State A. Foreign Assistance Act of 1964—Public Law 88-633 (1) Increases minimum interest rate on development loans, and (2) authorizes guarantees of commercial credit for purchase of defenserelated goods and services by friendly nations. B. Amendments to Agricultural Trade Development and Assistance Act—Public Law 88-638 (1) Sets statutory interest rate floor for all loans under the act, and (2) removes limitation on funds available for loans to business firms for expansion of agricultural exports. IV. Housing and Home Finance Agency (and other agencies) A. 1964 Amendments to Alaska Omnibus Act—Public Law 88-451 Authorizes (1) purchase of Alaska State bonds, (2) grants to help adjust debt on property damaged by earthquake, (3) extension of maturities on disaster housing loans by the Small Business Administration, and (4) broader authority to compromise outstanding debts. B. Housing Act of 1964—Public Law 88-560 (1) Authorizes numerous detailed revisions in existing mortgage and property loan insurance programs, (2) broadens direct loans for housing for the elderly to include housing for handicapped persons, (3) creates new direct loan program to finance rehabilitation of property in urban renewal areas, and (4) authorizes the Federal National Mortgage Association, as trustee, to pool mortgages owned by any Federal agency and sell and guarantee participations in such pools, and authorizes the Veterans Administration to agree to supply mortgages and installment sales contracts for such pools. V. Veterans Administration A. Amendments to direct loan authority—Public Law 88-402 Authorizes VA to sell, with its guarantee, any direct loan at a price not less than 98% of the unpaid principal balance and accrued interest. VI. Small Business Administration A. Amendments to Small Business Act—Public Law 88-264 Extends disaster loan authority to businesses sustaining economic injury from contamination of products. B. Small Business Investment Act Amendments of 1963—Public Law 88-273 (1) Increases maximum financial assistance to individual small business investment companies, (2) authorizes participation of banks and other lending institutions, and (3) liberalizes limitation upon loans made by the companies to individual business concerns. SPECIAL ANALYSIS F FEDERAL ACTIVITIES IN PUBLIC WORKS This analysis brings together from other parts of the budget the new obligational authority and expenditures for direct Federal construction, and for Federal grants and loans to State and local governments for construction of various types of public works in which there is a national interest. Because of variations in law and procedures Federal budget expenditures may precede or lag the actual work put in place. Expenditures nevertheless approximate the volume of direct Federal construction and the Federal share of the work accomplished on State and local projects. Federal activities also affect construction in the private sector; these activities, however, are not within the scope of this analysis. Such Federal assistance to the private sector generally takes the form of loans, loan guarantees, and tax concessions. In addition, Federal long-term leases serve as a basis for private construction of some facilities, such as post offices. Federal procurement, particularly of missiles, equipment for space programs, and helium, results in private construction of industrial facilities whose cost becomes a component in the price of the supplies sold to the Government over the years. Federal facilities currently account for 21% of the total public construction in the United States. These public works vary considerably in size and type. The principal Federal types are water resource developments, related power generating and transmission facilities, space facilities, research complexes, defense installations, and office buildings and museums. Table F-1. F E D E R A L E X P E N D I T U R E S FOR PUBLIC WORKS, F I S C A L Y E A R S 1957-66 (in millions of dollars) From budget accounts and trust funds Year 1957 1958 1959 1960 1961 1962 1963 1964 1965 estimate 1966 estimate Total, civil and defense public works 4,492 5,070 6,684 6,846 6,823 6,938 7,196 8,346 9,191 8,991 Civil public works Total 2,243 3,106 4,535 5,011 4,925 5,310 5,790 6,999 7,812 7,720 Federal construction 1,076 1,254 1,521 1,643 1,878 2,085 2,321 2,691 2,947 2,946 Grants 1,103 1,735 2,871 3,211 2,897 3,018 3,280 4,167 4,620 4,497 National defense public works Loans (net) 65 117 143 156 149 207 190 142 246 277 2,249 1,964 2,150 1,835 1,898 1,627 1,405 1,347 1,379 1,271 Note.— In this and the following tables, nonconstruction costs are excluded; proposed legislation is included for the years 1965 and 1966. Details may not add because of rounding. 417 750-000 0—65 418 THE BUDGET FOR FISCAL YEAR 1966 Federal grants assist State and local governments in financing the construction of highways, schools, hospitals and health centers, waste treatment works, and other structures. Such grants for public Table F-2. EXPENDITURES AND 1966 NEW AUTHORIZATIONS FOR CIVIL PUBLIC WORKS, BY AGENCY (in millions of dollars) From budget accounts and trust funds Expenditures 1964 actual Federal construction: Legislative branch Public works acceleration Office of Economic Opportunity.__ Forest Service Corps of Engineers—Civil Public Health Service Bureau of Reclamation Bonneville Power Administration Bureau of Indian Affairs _ _ _ _ ._ National Park Service. Post Office Department International Boundary and Water Commission. __ Federal Aviation Agency ._ _ General Services Administration National Aeronautics and Space Administration Veterans Administration Tennessee Valley Authority Other 1965 estimate 12 75 103 904 13 263 25 30 25 130 992 37 250 1966 estimate New authorization 8 1966 estimate 26 45 75 122 1,002 43 230 25 133 1,040 17 232 30 61 35 66 62 43 8 97 222 438 72 149 140 60 50 23 82 220 524 82 141 174 65 39 36 72 230 406 93 157 207 60 134 14 50 234 75 98 42 151 2,691 2,947 2,946 2,536 234 241 57 11 3,606 39 123 58 12 4,045 31 61 30 3,816 151 3,869 482 24 1 28 60 25 18 46 75 200 18 54 4,167 4,620 4,497 5,005 13 17 12 25 12 96 9 5 6 13 151 50 8 8 18 183 42 10 11 15 15 38 Total, loans 142 246 277 110 Civil public works: Budget accounts Trust funds 3,366 3,633 3,750 4,063 3,885 3,834 3,768 3,883 6,999 7,812 7,720 7,651 Total, Federal construction Grants to State and local governments: Public works acceleration . Soil Conservation Service Area Redevelopment Administration Bureau of Public Roads.. Office of Education Public Health Service . _ _ Federal Aviation Agency Housing and Home Finance Agency District of Columbia Other _ _ __ _ Total, grants Loans to State and local governments, net: Area Redevelopment Administration Bureau of Reclamation Housing and Home Finance Agency District of Columbia __ Department of Agriculture Other _. -_ - . _ -. -. Total, civil public works __ _ 131 65 146 57 71 72 166 98 87 63 245 11 6 SPECIAL ANALYSES 419 works currently constitute about one-fifth of the expenditures for all State and local public construction. The Federal share of the cost of the works aided depends upon program objectives and provisions of law, and varies substantially among the grant programs. Public works are usually built by private contractors under contracts with the Federal Government or State and local governments. Federal expenditures for public works in 1966 are estimated at $9 billion, $200 million below the 1965 level. About 86% of 1966 expenditures will be for civil public works. The remainder will be for military public works and atomic energy facilities. Over the past 10 years, both cost changes and program shifts have occurred in the public works programs. A part of the increase in expenditures may be attributed to increased construction costs, which are now about 15% higher than in 1957. National defense construction, estimated at $1.3 billion in 1966, shows a decline of about 43% from the 1957 level; for direct Federal civil works, however, the 1966 level is nearly triple that in 1957; for grants and loans to State and local governments, it is more than four times as large as the 1957 level. In large measure these changes reflect the growth in population, rising standards of living, increase in mobility and leisure of individuals, and technological developments. CIVIL PUBLIC WORKS Civil public works expenditures of $7.7 billion in 1966, are $92 million below the 1965 level. The expenditures are divided about equally between administrative budget funds and trust funds. The largest increases in expenditures over 1965 are in the education and health, labor, and welfare programs. The major decreases in expenditures are in the commerce and transportation programs and the space program. New obligational authority of $7.7 billion recommended for 1966 is $269 million above the amount for 1965. Grants to State and local public works, estimated at $4.5 billion in 1966, make up more than half of total civil works expenditures (58%). The $3.8 billion of grants for the Federal-aid highway programs are financed from the Highway Trust Fund. Federal aid for the primary, secondary and urban highways is on a 50-50 matching basis; the Federal share of the National System of Interstate and Defense Highways is 90%. The Federal share of the cost is increased in States with large areas of public domain. Other major grant programs are those for schools, hospitals and waste treatment works. Direct Federal public works expenditures of $2.9 billion in 1966 amount to 38% of total civil works expenditures. The natural resources programs account for $1.8 billion of this total. Construction for the space program is estimated at $0.4 billion. The $277 million of expenditures for loans in 1966 are on a net basis; i.e., expenditures for new loans are generally offset by repayments of loans made in prior years. These net totals therefore do not reflect the amount of construction aid provided by the loan programs. Major loan expenditures in 1966 are those of the Housing and Home Finance Agency for college housing and public facilities. New and continuing work,—Table F-3 gives information on direct Federal construction in 1966 according to whether the expenditures are for projects started in a prior year, new projects to be started in 420 THE BUDGET FOR FISCAL YEAR 1966 Table F-3. ESTIMATED COST OF 1966 DIRECT FEDERAL CIVIL PUBLIC WORKS BY CONTINUING AND NEW WORK (in millions of dollars) From budget accounts and trust funds Agency or program Continuing work: Corps of Engineers National Aeronautics and Space Administration. __ Bureau of ReclamationGeneral Services Administration Forest Service Tennessee Valley Authority _ Veterans Administration Bureau of Indian Affairs _ National Park Service.__ Bonneville Power Administration Office of Economic Opportunity Federal Aviation Agency Public Health Service International Boundary and Water Commission. __ Post Office Department Other Total, continuing work New projects and features in 1966: Tennessee Valley Authority _ Corps of Engineers—Civil Federal Aviation Agency Office of Economic Opportunity . ____ Forest Service Coast Guard _ _ General Services Administration Post Office Department: Existing programs i Proposed legislation _ _ __* __ Veterans Administration. National Aeronautics and Space Administration. __ Bonneville Power Administration Bureau of Reclamation Bureau of Indian Affairs Other Total, new projects and features Advance planning: General Services Administration * Corps of Engineers—Civil Post Office Department (proposed legislation) 1__. National Aeronautics and Space Administration.._ Tennessee Valley Authority. Bureau of Reclamation _ National Park Service.. Other Total, advance planning Total, direct civil public works 1 Includes some site costs. Total Cumula- 1966 Required Federal cost June 30, 1965 expenditures plete 14,562 2,272 5,119 786 645 537 366 697 699 338 75 324 157 128 84 1,213 9,763 1,369 3,250 327 495 332 172 316 55 22 25 77 64 48 3 741 946 390 222 198 108 103 83 70 64 64 50 46 37 36 20 179 3,854 514 1,647 261 43 102 112 311 580 252 28,002 17,058 2,616 8,328 255 777 49 25 18 20 587 6 16 49 37 26 25 15 12 10 199 724 23 3 8 576 2 1 8 9 7 7 6 1 43 41 72 84 60 64 97 58 83 26 256 2,092 69 15 2 6 5 2 10 12 42 80 94 67 71 103 59 127 2,374 2 201 56 44 60 291 193 55 12 18 10 11 12 23 102 22 2 1 7 1 4 21 19 10 9 4 2 1 8 334 139 74 121 30,710 17,223 2,946 10,541 SPECIAL ANALYSES 421 1966, or advance planning on projects to be started after the budget year. Although $2.6 billion will be spent in 1966 on projects started in earlier years, an additional $8.3 billion will be required after 1966 for their completion. The new projects to be started in 1966 are estimated to cost $2.4 billion, of which $256 million will be spent in 1966. The Corps of Engineers will start 37 new projects and the Bureau of Reclamation 5 new projects. The Tennessee Valley Authority will start a steam electric unit of 1,130,000 kilowatt capacity and four smaller water resources projects. Planning will be initiated by the General Services Administration on a number of public buildings, and construction will be started on 33 Federal buildings, including 9 extensions and conversions and the acquisition of 1 building now under lease. Legislation is recommended to authorize the Post Office Department to construct facilities to be used exclusively for postal purposes; the 1966 budget includes $92 million for this purpose. New facilities are recommended for the research, launch, and test centers of the National Aeronautics and Space Administration. Additional rural and urban Job Corps centers will be built under the auspices of the Office of Economic Opportunity. Several grant programs authorized by the past Congress and additional new programs recommended in the 1966 budget will provide grants for construction of State and local facilities. Among these are grants by the Veterans Administration for construction of State nursing homes; grants by the Housing and Home Finance Agency for basic community facilities and supporting facilities for urban social service programs; and grants by the Office of Education for higher education facilities, vocational schools, and libraries. The Soil Conservation Service will aid local units in the construction of 70 new watershed projects, and the Bureau of Reclamation will make new loans to local groups for 4 small reclamation projects. Public works planning and surveys.—Construction of some types of public works is preceded by preliminary surveys and general investigations which help to assure economic design of facilities. Comprehensive river basin planning requires coordinated long-range economic, hydrologic, and land-use projections, which serve as a basis for planning individual water resource projects to be started in later years. Expenditures for such studies are not included in the summary tables of this analysis. Expenditures of $74 million in 1966 for advance planning on specific projects, prior to start of construction (shown in table F-3), include outlays for acquisition of some sites for buildings. In addition, the Housing and Home Finance Agency will advance $18 million in 1966 to States and local government agencies for advance planning of local public works. Such planning serves to promote economy and efficiency. 422 THE BUDGET FOR FISCAL YEAR 1966 Table F-4. RESERVE OF PRESENTLY AUTHORIZED PROJECTS AND PROGRAMS FOR UNDERTAKING AFTER 1966 (in billions of dollars) Cost of authorized reserve Estimated total Federal cost Agency Corps of Engineers—Civil Forest Service Tennessee Valley Authority Bureau of Land Management Federal Aviation Agency Bureau of Reclamation General Services Administration. Bonneville Power Administration Other agencies Total 1 4.0 1.6 1.0 .7 .5 .4 .4 .4 .4 9.4 Status of plans as of June 30. 1965 Contract could be let 0.2 .2 .1 0) (l) In 2.4 1.3 0) .8 Not Contract In Not be let 0) w Status of plans as of June 30, 1966 4.5 1.4 .4 .6 .4 .1 .2 .4 .4 3.9 1.3 .2 .4 1.6 1.3 1.1 , .2 .6 .3 .1 .1 .1 .1 .4 .3 3.7 3.1 0) .*3 .2 (1) P) 2.5 $50 million or less. Authorized reserve of direct Federal public works.—Agencies whose programs regularly include public works generally have a reserve of projects previously authorized. Such projects require only financing and planning for starting. The reserve provides a basis for selection of projects which most adequately fulfill program needs and budgetary policy. Table F-4 indicates the size and status of planning on the authorized reserve. Civil public works by function.—Federal programs are classified in the budget by major functional categories. In table F-8 the public works activities are grouped according to these functions. The commerce and transportation function—with its large grants for highways, airports and the public works acceleration program, Table F-5. PUBLIC WORKS ACCELERATION PROGRAM (in millions of dollars) Agency Housing and Home Finance Agency (grants) Public Health Service (grants) 1 — Department of Agriculture Department of the Interior Department of Commerce Other.. Lapsed and unallocated funds Total Estimated obligations (allocations) Expenditures 1963 1964 actual 1965 1966 467 229 63 63 20 19 23 13 1 23 17 2 6 176 68 30 30 15 12 185 85 10 14 4 1 80 65 884 62 332 300 145 1 Includes grants of $1, $23, $28, and $22 million in 1963-66, respectively, for nonprofit private hospitals which are not classified as public works. 423 SPECIAL ANALYSES Table F-6. BUDGET EXPENDITURES FOR WATER RESOURCES AND RELATED DEVELOPMENTS (in millions of dollars) 1964 actual Type Flood control works: Corps of Engineers—Civil _ Grants Bureau of Reclamation _ Soil Conservation Service (mostly grants) International Boundary and Water Commission Tennessee Valley Authority._ _ ___ 1965 estimate 1966 estimate 367.9 7.7 2.8 53.9 .4 4.9 415.7 12.1 9.0 55.5 .8 4.0 378.6 20.9 14.0 58.5 1.0 2.6 437.6 .7 497.1 2.0 475.6 2.1 99.2 11.8 8.4 5.3 67.7 12.9 9.2 9.0 29.5 17.9 11.0 10.5 124.7 98.8 68.9 227.9 .2 8.5 295.1 1.0 6.5 296.2 .6 1.5 236.6 302.6 298.3 Multiple-purpose dams and reservoirs with hydroelectric power facilities: Bureau of Reclamation _ _ Corps of Engineers—Civil International Boundary and Water Commission Tennessee Valley Authority _ 105.8 270.8 7.0 5.9 119.4 248.1 11.8 10.3 132.2 301.6 14.8 34.3 Total, multiple-purpose facilities Steam-electric powerplants: Tennessee Valley Authority 389.5 77.7 389.6 53.7 482.9 38.9 39.5 55.0 30.3 4.4 54.0 54.1 35.5 2.8 61.0 54.0 71.4 5.2 129.2 66.4 146.4 74.0 191.6 80.0 1,462.4 1,564.2 1,638.3 __ Total, flood control works Beach erosion control: Corps of Engineers—Civil Irrigation and water conservation works: Bureau of Reclamation Loan and grant program Soil Conservation Service (mostly grants) Bureau of Indian Affairs Total, irrigation works Navigation facilities: Corps of Engineers—Civil _ Saint Lawrence Seaway Development Corporation Tennessee Valley Authority __ Total, navigation facilities Power transmission facilities: Tennessee Valley Authority Bureau of Reclamation Bonneville Power Administration _ Southwestern Power Administration.__ Total, power transmission facilities Waste treatment facilities: Public Health Service, grants Total, water resources and related developments __ __ as well as direct Federal programs for air navigation and postal facilities—accounts for $4.2 billion of expenditures, more than half of the total to be spent for civil public works in 1966. The public works acceleration program is shown in table F-5. The natural resources programs account for $1.8 billion, or 24% of the 1966 total civil works expenditures, of which $1.5 billion is for water resources and related power developments. This includes work on the Federal segment of the Pacific Northwest-Southwest power intertie, the largest electrical transmission system undertaken in this country. 424 THE BUDGET FOR FISCAL YEAR 1966 The transmission lines will tie together electric systems—public and private—from Vancouver, B.C., and Seattle to Los Angeles and Phoenix. Other natural resources expenditures will be for construction of roads and trails, highways and parkways, and recreational facilities in the national forests and parks and on Indian and public domain lands; school facilities for Indian children; fish and wildlife facilities; and research centers, including test site facilities for desalting water. In addition to continuing work on the Amistad Dam and Lower Rio Grande projects, the International Boundary and Water Commission, United States and Mexico, will expedite the necessary relocation of the channel of the Rio Grande in the vicinity of El Paso, Tex., and Juarez, Chihuahua, and other facilities related to the boundary settlement. The agriculture function includes grants for watershed projects and State research centers, and construction of Federal laboratories and research facilities. In addition to rural and urban Job Corps centers for the Office of Economic Opportunity, other facilities needed to carry out the health, labor, and welfare programs include research facilities; Indian health facilities; grants for hospitals, health research facilities, waste treatment works, and mental health centers; and district offices for the Social Security Administration and Food and Drug Administration. Expenditures on facilities for the advancement of education are estimated at $321 million in 1966, an increase of over 80% from 1965. Major increases will be for grants for higher education facilities and vocational schools and loans for college housing. Construction will go forward on the John F. Kennedy Center for the Performing Arts by the Smithsonian Institution. Major programs in 1966 classified under other functions include $92 million of expenditures for construction of hospitals and domiciliary facilities by the Veterans Administration and the $230 million of expenditures by the General Services Administration for Government buildings. NATIONAL DEFENSE PUBLIC WORKS Department of Defense—Military.—The budget includes provision for implementing a 5-year force structure and financial plan to strengthen and modernize the Armed Forces of the United States, both overseas and domestic. The construction supports activities of the various services, including facilities used for operations, training, maintenance, research and development, logistics, administration, and troop housing. The previously authorized Minuteman facilities are to be upgraded, and the Titan II missile facilities are to be improved. Further work is proposed to provide additional protection against radiation fallout for the Nike-Hercules air defense missile system. Funds are included to accelerate the replacement of World War II troop housing, bachelor officer quarters, and training, maintenance, and administrative facilities. Modernization of some naval shipyards is also a part of the program for 1966. Construction of facilities is also recommended to 425 SPECIAL ANALYSES accommodate missions transferred as a result of base closures. About $130 million of the $1.6 billion of new obligational authority is recommended in 1966 for facilities in support of research and development. The 1966 estimate of new authority for military construction includes $50 million to be used for the construction of facilities which may be required by the military services to meet emergency situations. When these requirements arise, funds in the needed amounts as determined by the Secretary of Defense will be transferred to the construction accounts of the Departments of the Army, Navy, and Air Force. For 1966, all facilities required to support the realigned forces of the Army Guard and Reserve will be financed by the use of prior year funds. Expenditures for the Minuteman program show a decline in 1966 as major facilities started in earlier years approach completion. This decrease is a major factor in the overall decrease in military construction expenditures. The family housing program for 1966 includes provision for the construction of an additional 12,500 units as well as numerous improvements to existing units. Atomic Energy Commission.—Expenditures in 1966 are primarily for continuation of work underway on major production and research and development facilities. New projects, modifications, and additions to the production plants and research and development facilities, estimated to cost $134 million, are scheduled to be started in 1966 with first-year expenditures of $20 million. Table F-7. FEDERAL EXPENDITURES FOR CONSTRUCTION BY COOPERATIVE AND NONPROFIT GROUPS (not included in civil public works) (In millions of dollars) Program Federal construction: Howard University Gallaudet College Grants: Hospital construction Hospital facilities, D.C Health professions educational facilities _ Health research facilities University laboratories Higher educational facilities Educational television facilities Urban mass transportation facilities Public works acceleration program Loans: Rural electrification and telephones College housing (net) Total. • N e t basis. 1964 1966 1965 3 1 4 2 7 1 125 1 137 4 4 46 41 23 4 5 2% 145 2 37 46 51 43 6 20 22 330 133 *201 127 *203 143 694 603 726 36 40 2 426 THE BUDGET FOR FISCAL YEAR 1966 AID TO COOPERATIVES AND NONPROFIT GROUPS Some types of private institutions perform functions quasi-governmental in character, such as provision of educational opportunities, promotion of health, and conduct of research. Federal grant and loan programs that aid State and local construction sometimes include provisions for such institutions. Such expenditures, not included in the public works tables of this analysis, are shown in table F-7 for major types of construction in this group, and for Howard University and Gallaudet College, institutions which bear a special relationship to the Federal Government. Table F-8. FEDERAL ACTIVITIES IN PUBLIC WORKS (in millions of dollars) By major function and agency NEW AUTHORIZATIONS 1964 1965 EXPENDITURES 1966 1964 actual 1965 1966 estimate CIVIL PUBLIC WORKS International Affairs and Finance Department of State: State Department and Foreign Service buildings _. . Cultural and Technical Interchange Center, Hawaii (grant)_ __ United States Information Agency: Radio facilities 10.6 .6 Total, international affairs and finance 17.7 7.9 3.3 4.7 15.4 11.0 8.4 7.3 9.1 26.5 14.3 13.2 15.8 713.3 262.9 74.7 437.8 524.0 406.0 11.5 5.7 3.2 20.6 2.0 2.1 9.3 3.2 15.8 2.0 .3 59.8 4.5 .4 61.6 4.7 .4 62.6 8.7 .3 56.7 5.3 .3 58.4 6.0 .4 61.2 8.0 1.0 1.0 2.5 2.5 1.5 2.5 2.5 77.1 76.5 99.2 78.8 92.4 7.1 8.5 10.9 .6 .2 Space Research and Technology National Aeronautics and Space Administration: Research and space flight facilities Agriculture and Agricultural Resources Department of Agriculture: Laboratories, research facilities, and library. _ _ Grants for research facilities _ _ . Soil Conservation Service: Flood prevention, watershed protection, and other: Direct work Grants Loans Farmers Home Administration: Rural renewal loans Grants for rural housing Total, agriculture and agricultural resources 64.5 427 SPECIAL ANALYSES Table F-8. FEDERAL ACTIVITIES IN PUBLIC WORKS (in millions of dollars) — C o n t i n u e d By major function and agency Function, organization unit, and program NEW AUTHORIZATIONS 1964 enacted EXPENDITURES 1964 actual 1965 1966 102.1 27.0 106.4 27.5 104.5 28.5 80.6 22.5 107.7 22.7 95.4 27.0 873.5 36.6 981.4 1,017.4 21.9 22.5 12.1 20.9 867.3 36.9 7.7 961.0 31.0 12.1 978.6 23.0 20.9 1965 1966 CIVIL PUBLIC WORKS—Continued Natural Resources Department of Agriculture: Forest Service: Roads and research, recreational and protective facilities Trust funds Department of Defense—Civil: Corps of Engineers—Civil: Flood control, navigation, and multiple-purpose projects with power Trust funds Grants Department of the Interior: Office of Saline Water: Demonstration plants and research facilities Power transmission facilities: Bonneville Power Administration l Southwestern Power Administration.. Bureau of Land Management: Roads and other facilities Bureau of Indian Affairs: Irrigation works, roads, and schools Bureau of Reclamation: Irrigation and multiple-purpose projects with power1 Loans, small irrigation projects Grants, small irrigation projects Geological Survey: Laboratories Bureau of Mines: Laboratories and other structures Anthracite mine drainage, grants Fish and Wildlife Service: Facilities. _ _. National Park Service: Parkways, roads, buildings, and utilities * Department of State: International Boundary and Water Commission: Water resources projects. Restoration of salmon runs, Fraser River system Tennessee Valley Authority: Power, water resources, and chemical facilities Total, natural resources 7.7 .2 1.4 7.8 1.2 1.2 6.8 35.9 3.0 85.8 2.6 97.9 4.5 30.3 4.4 35.5 2.8 71.4 5.2 12.1 10.7 9.7 7.0 9.0 8.4 77.2 70.0 87.0 60.6 65.5 71.6 283.5 12.0 (2) 248.0 11.9 .2 1.0 232.4 14.7 .1 .2 262.8 11.8 250.2 229.7 12.6 .2 .6 17.7 .1 .5 .4 1.7 13.7 1.7 5.5 9.4 11.3 3.7 .3 .1 12.3 68.4 63.2 60.3 62.3 60.0 64.9 6.5 38.3 13.9 7.5 23.2 35.8 .1 32.6 31.5 41.6 1,588.0 1,725.3 1,767.7 149.5 141.1 156.7 ,625.2 1,752.3 1,821.0 Commerce and Transportation Funds appropriated to the President: Public works acceleration program: Grants Direct Federal work See foot: nd of table. 27.6 3.8 234.4 74.7 241.3 30.4 123.2 428 THE BUDGET FOR FISCAL YEAR 1966 Table F-8. FEDERAL ACTIVITIES IN PUBLIC WORKS (in millions of dollars)—Continued By major function and agency Function, organization unit, and program NEW AUTHORIZATIONS 1964 1965 EXPENDITURES 1966 1964 1965 1966 stimate CIVIL PUBLIC WORKS—Continued Commerce and Transportation—Con. Department of Commerce: Maritime Administration: Library and (2) other improvements 0.6 0.8 Bureau of Public Roads: Highway and other trust funds: Grants _ ,622.4 ,730.5 ,830.9 ,568.5 ,003.6 ,775.9 Woodrow Wilson Bridge and other (2) (2) work Forest and public lands highways, grants 38.4 41.3 40.4 36.6 38.4 40.8 Control of outdoor advertising, grants. .2 .4 Coast and Geodetic Survey: Observatories and facilities -_ .5 .5 .6 .9 1.0 1.1 Weather Bureau: Facilities __ .6 .6 2.3 2.4 1.4 .4 .6 8.2 New York World's Fair: Buildings National Bureau of Standards: Labora18.6 1.0 tories 16.2 18.7 5.7 7.7 Area Redevelopment Administration: 11.4 11.5 30.5 Grants for public facilities. 12.5 17.0 Loans for public facilities _ 7.7 12.8 25.0 9.5 Department of Defense—Civil: Panama Canal Company: Canal and harbor 7.0 improvements and bridge _ 7.1 6.6 Department of the Interior: Alaska Rail5.6 13.7 road - 1.7 3.0 20.0 Post Office Department: Improvements, 39.3 50.1 alterations, and new postal facilities 42.6 11.6 133.8 58.8 Treasury Department: Coast Guard: 32.1 21.0 Stations and aids 39.1 26.2 25.0 25.0 -5.0 -5.0 -20.5 Department of Defense transfer Federal Aviation Agency: Air traffic control, navigation and re67.0 76.1 49.1 88.8 search facilities 49.3 93.5 5.0 6.0 Washington, D.C., and Alaska airports 8.0 1.3 1.9 2.5 60.1 57.2 Federal-aid airport program: Grants *_. 65.3 75.0 75.0 75.0 Federal Communications Commission: .1 .1 .1 Construction .1 .1 .1 St. Lawrence Seaway Development Cor.6 1.0 .2 poration__ __ Total, commerce and transportation 3,982.0 3,955.0 4,186.2 4,196.1 4,593.3 4,216.5 Housing* and Community Development Housing and Home Finance Agency: Office of the Administrator: Urban transportation grants Public facility loans Urban service facilities and basic community facilities grants (proposed) See footnotes at end of table. 20.0 50.0 44.0 150.0 41.5 10.0 43.5 15.0 429 SPECIAL ANALYSES Table F-8. FEDERAL ACTIVITIES IN PUBLIC WORKS (in millions of dollars) —Continued By major function and agency NEW AUTHORI- EXPENDITURES ^ATIAMC Function, organization unit, and program 1964 1965 1966 1964 1965 1966 estimate CIVIL PUBLIC WORKS—Continued Housing and Community Development—Continued Housing and Home Finance Agency —Con. Office of the Administrator—Continued Advance planning, non-Federal public works: Loans _ Liquidating programs: Loans Public Housing Administration: Lowrent public housing loans. National Capital Transportation Agency: Land acquisition and construction Federal grants District of Columbia: Loans for highway, sewage, and water systems and other structures Federal payment to District: Grant Total, housing and community development Health, Labor, and Welfare Office of Economic Opportunity: Job Corps centers and related facilities Department of Health, Education, and Welfare: Food and Drug Administration: Buildings Public Health Service: Federal research facilities and National Library of Medicine Indian health facilities: Direct work 1 Grants Grants for public hospitals __ __ Grants for health research facilities Grants for waste treatment works Grants for mental health centers Mental health facilities, Alaska (grant) Saint Elizabeths Hospital: Buildings Social Security Administration: Buildings and district offices (trust fund) _ _ Total, health, labor, and welfare Education Department of Health, Education, and Welfare: Educational television facilities: Grants_ Office of Education: Schools in federally affected areas: At Federal installations Grants See footnotes at end of table. 2.0 14.0 15.0 7.1 -1.0 3.3 -.1 7.9 -.7 -45.3 -2.6 1.6 (2) 1.6 10.2 19.3 26.4 .7 38.3 18.0 9.4 49.5 .7 42.2 18.0 21.3 61.1 281.5 14.2 92.3 139.2 75.0 25.0 25.0 75.0 4.5 10.9 6.3 1.4 2.5 7.3 16.3 22.5 7.8 6.7 27.4 31.7 6.7 8.5 9.4 9.2 11.5 79.0 1.5 90.0 82.5 1.5 90.0 35.0 93.5 1.5 100.0 50.0 5.9 .2 62.4 1.4 66.4 67.7 1.5 74.0 3.0 69.0 80.0 15.0 .6 2.0 2.0 .1 .7 (2) 2.0 2.2 2.6 2.6 7.2 147.8 215.0 300.5 4.1 5.8 9.2 27.0 9.4 36.8 198.6 327.9 295.5 3.1 6.8 5.9 10.0 13.1 10.0 47.6 10.0 39.4 10.9 39.0 ].5 430 THE BUDGET FOR FISCAL YEAR 1966 Table F-8. FEDERAL ACTIVITIES IN PUBLIC WORKS (in millions of dollars)—Continued By major function and agency Function, organization unit, and program EXPENDITURES NEW AUTHORIZATIONS 1964 1964 1965 1966 181.0 64.0 30.0 322.4 90.0 30.0 1966 stimate 1965 CIVIL PUBLIC WORKS—Continued Education—Continued Department of Health, Education, and Welfare—Continued Office of Education—Continued Higher education facilities: Loans Grants Vocational schools (grants) Libraries (grants) Housing and Home Finance Agency: College housing loans National Science Foundation: Research facilities Smithsonian Institution: John F. Kennedy Center for Performing Arts Museums Total, education Veterans Benefits and Services Department of Defense—Civil: Army: Cemeteries _ United States Soldiers' Home (trust fund) Veterans Administration: Hospital and domiciliary facilities Grants for construction of State nursing homes Corregidor-Bataan Memorial. American Battle Monuments Commission: Memorials and cemeteries Total, veterans benefits and services _ 3.2 .9 5.3 64.4 36.5 13.0 91.5 108.8 130.6 0.2 150.0 205.0 10.2 7.2 7.1 10.8 79 6.8 15.4 7.8 15.5 4.1 4.0 7.3 1.0 13.8 5.0 7.8 209.5 571.3 508.8 159.5 176.2 321.4 .4 3.7 1.0 .5 .8 2.7 .6 .1 72.1 82.0 92.5 .1 .5 .9 78.6 100.1 97.0 .1 5.0 1.4 79.0 103.9 104.4 5.0 3.5 .7 .1 .1 73.4 83.0 96.6 12.4 22.8 11.2 (2) (2) General Government Legislative branch: Architect of the Capitol: Buildings and Library _ _ __ __ Botanic Garden: Greenhouses _ Government Printing Office: Annex Department of Defense—Civil Army: Power and water systems in the Ryukyu Islands: Loans Canal Zone Government: Improvements __ Department of the Interior: Office of Territories: Public facilities in Samoa, Guam, and the Trust Territory of the Pacific Islands: Grants Loans Virgin Islands Corporation: Water and power facilities _ See footnotes at end of table. 2.5 2.3 14.4 5.9 4.3 .3 44.8 6.5 4.8 9.6 4.5 7.0 10.1 10.8 12.1 10.9 6.8 5.9 16.4 6.7 3.5 10.7 5.5 .6 .4 431 SPECIAL ANALYSES Table F-8. FEDERAL ACTIVITIES IN PUBLIC WORKS (in millions of dollars) — C o n t i n u e d By major function and agency EXPENDITURES NEW AUTHORIZATIONS 1964 enacte 1965 1966 1964 1965 1 1966 estimate CIVIL PUBLIC WORKS—Continued General Government—Continued Department of Justice: Federal Prison System: Prison facilities. Immigration and Naturalization Service: Border facilities _ Treasury Department: Bureau of Customs: Border facilities._ Bureau of the Mint: U.S. mint Bureau of Engraving and Printing: Air conditioning _ _. General Services Administration: Construction of public buildings, sites and planning 1 Central Intelligence Agency: Headquarters. Total, general government Total, civil public works 9.5 19.2 3.6 4.0 10.5 15.7 .3 .3 .4 .2 .3 .5 .2 .2 16.5 .2 1.0 .2 .2 2.8 .3 7.5 .1 2.9 3.0 5.8 227.4 213.5 233.7 221.8 .3 220.2 .5 229.8 1.3 259.8 289.3 306.6 266.5 284.4 310.3 _ 7,146.3 7,382.3 7,651.1 6,999.2 7,812.4 7,719.6 Budget accounts _ 3,458.4 3,601.4 3,768.3 3,365.8 3,749.8 3,885.5 Trust funds 3,687.9 3,780.9 3,882.8 3,633.4 4,062.7 3,834.2 NATIONAL DEFENSE PUBLIC WORKS Department of Defense—Military: Interservice activities: Construction, defense agencies 83.2 28.6 29.0 18.0 12.7 25.0 Loran stations 5.0 20.5 5.0 5.0 5.0 20.5 244.9 112.5 150.0 175.0 Family housing 156.3 158.8 Civil Defense: 6.0 5.4 5.1 5.4 4.6 Grants for shelter 4.8 .4 .3 Emergency centers and shelters 1.5 7.8 Army: 441.4 260.0 211.9 200.0 Construction 300.4 200.6 4.0 Construction, Army Reserve 3.0 6.7 5.0 4.5 Construction, Army National Guard 8.0 11.0 13.8 5.7 (grants) 10.8 Navy: 220.0 183.7 225.0 Construction 338.3 247.9 198.9 7.0 7.0 9.5 7.0 6.0 Construction, Naval Reserve 6.5 Air Force: 385.0 Construction 422.0 500.0 535.9 468.3 332.1 4.0 4.0 4.0 4.0 5.0 4.0 Construction, Air Force Reserve 10.0 10.0 14.5 15.0 16.0 14.0 Construction, Air National Guard Total, Department of Defense— 1,112.9 1,101.5 1,572.1 1,144.6 1,155.4 1,101.3 Military 223.6 169.9 90.9 202.0 245.3 180.2 Atomic Energy Commission: Facilities Total, national defense public works: Budget accounts _ _ 1,358.2 1,281.7 1,663.0 1,346.6 1,379.0 1,271.2 Total, civil and defense public works 1 2 8,504.5 8,664.0 9,314.1 8,345.8 9,191.5 8,990.8 Includes small amounts from trust funds. $50 thousand or less. SPECIAL ANALYSIS G FEDERAL HEALTH PROGRAMS This analysis presents information on all the medical and healthrelated activities of the Federal Government, regardless of whether they may be classified in "health" or in other functional groupings in the budget. On this broad basis, the Government will spend an estimated $6.2 billion in 1966 for all health activities—for hospital care and medical treatment in Federal and non-Federal facilities, for construction of health facilities, for health research and training, and for a multitude of preventive and community health and health-related programs. The bulk of these health expenditures will be from administrative budget funds—about 6% of the administrative budget total. However, trust fund expenditures of $557 million will be made, mainly for health benefits for Federal employees, but they will be nearly offset by receipts from contributions by employees and Federal agencies. Compared to the total net expenditures of $6.2 billion from budget accounts, new obligational authority in 1966 will be $6.6 billion. F e d e r a l Expenditures, Medical and Htalth-Relattd Activities by Category The development of Federal health-related expenditures.—Health programs are among the oldest activities of the Federal Government. The origins of the Army Medical Service predate the Constitution, and the Public Health Service was established in 1798 to provide hospital care for merchant seamen. Medical and hospital care was provided for veterans residing in the National Homes for Disabled Volunteer Soldiers established after the Civil War. Such care for all 432 SPECIAL ANALYSES 433 service-disabled veterans was provided by an amendment to the War Risk Insurance Act of 1917, and in 1923 and 1924 inpatient benefits were authorized for non-service-connected disability. Experiments in 1900 by Walter Reed, an Army doctor, proving that mosquitoes carry yellow fever, indicate the longstanding Federal interest in nealth research. Federal consumer protection activities are evidenced in the Meat Inspection Acts of 1890 and 1906 and the Pure Food and Drug Act of 1906. In the decade following World War II, the directly operated hospital and medical activities of the Veterans Administration and the agencies now comprising the Department of Defense were by far the largest Federal health programs. In recent years, however, expenditures for care of military personnel have been fairly level and outlays for the care of veterans have increased at a moderately steady pace. By contrast, the programs of other agencies, notably of the Department of Health, Education, and Welfare, have been expanding rapidly. In the past 15 or 20 years many new health programs have been enacted, particularly programs which authorize grants to State-local agencies and to private organizations and individuals for health research, training, facilities, and for support of health activities and services. This analysis was only started in the 1965 budget, so precisely comparable figures are not available before fiscal 1963. (In 1963 expenditures were $4,658 million.) However, the proposed new obligational authority for fiscal 1966 can be compared with the figures for obligations for 1958 which were published in 1961 on a reasonably comparable basis in Senate Report No. 142, 87th Congress, 1st session, prepared by a subcommittee of the Senate Committee on Government Operations. Health programs in 1958, according to this report, totaled about $3 billion compared to the proposed new obligational authorizations of $6.6 billion for 1966. While the total more than doubles during this 8-year period, Department of Defense programs rise from less than $1 billion to over $1.1 billion and Veterans Administration programs rise from $0.9 billion to $1.3 billion, a combined increase of about 25%. The programs of the Department of Health, Education, and We!fare> however, increase fourfold, rising from $0.8 billion to $3.2 billion. Funds for all other agencies combined rise from about $0.3 billion in 1958 to $0.6 billion in 1965. Distribution of Federal health programs by agency,—Seven Cabinet departments and more than a dozen other agencies conduct or support health programs, in addition to those for Federal employees which are financed by every agency. Many of the health activities of these agencies are not classified in the "health, labor, and welfare" function but are carried on as part of programs for other purposes and are classified in the functional categories according to the basic purpose served, such as "national defense," "veterans benefits and services/' etc. However, because these activities contribute to advancing the Nation's health, they are included in this analysis. Thus while the regular functional classification shows expenditures of $2.2 billion in 1966 for "health services and research"—all by the Department of Health, Education, and Welfare—the amounts included in this analysis are almost three times as large and cover many agencies. Table G-l shows the expenditures for each agency. 750-000 O—G5 2S 434 THE BUDGET FOR FISCAL YEAR 1966 Table G-l. FEDERAL EXPENDITURES FOR MEDICAL A N D HEALTHRELATED P R O G R A M S BY AGENCY (in millions of dollars) Agency 1964 actual 1965 estimate 1966 estimate ADMINISTRATIVE BUDGET Department of Health, Education, and Welfare: Public Health Service: National Institutes of Health Other Welfare Administration _._ Other Total, Department of Health, Education and Welfare Veterans Administration,. Department of Defense: Army Navy Air Force Other Total, Department of DefenseAgency for International Development Atomic Energy Commission Department of Agriculture National Aeronautics and Space Administration Housing and Home Finance Agency National Science Foundation Civil Service Commission Office of Economic Opportunity Department of State Department of Labor Department of Justice Peace Corps Panama Canal Small Business Administration Department of the Interior General Services Administration United States Information Agency Contributions by Federal agencies to Federal employees' health benefits fund not included above Total net budget expenditures for health. 654.1 93.3 874.0 763.7 790.4 105.0 1,017.5 130.7 2,293.0 2,533.1 3,094.0 1,229.1 1,280.0 1,315.0 460.1 193.2 363.7 3.6 458.8 468.3 206.1 374.0 221.0 7.6 378.6 4.2 1,020.6 1,046.5 1,072.1 91.2 82.7 99.8 28.3 42.0 28.5 24.3 89.7 90.7 95.8 97.7 91.8 65.1 54.0 914.5 631.1 112.8 61.8 37.5 25.9 27.0 3.0 988.1 957.7 35.1 15.4 16.7 3.6 3.9 6.0 2.1 18.2 17.5 29.2 20.0 18.8 18.6 3.9 5.8 7.2 4.0 7.9 7.8 7.5 2.4 1.3 .9 .3 1.7 2.1 .3 1.8 121.0 127.5 131.0 5,110.7 5,496.2 6,166.4 -14.7 7.3 -14.1 7.0 20.0 -17.6 7.1 -7.4 -7A .5 .3 TRUST FUNDS Department of Health, Education, and Welfare: Social Security Administration Civil Service Commission, ret United States Soldiers' Home Total trust fund expenditures for health Total budget and trust fund expenditures for health. 5,103.3 5,489.1 9.5 6,175.9 SPECIAL ANALYSES 435 Of the $6.2 billion in budget and trust fund expenditures estimated for health in 1966, $5.5 billion, or 89%, will be made by three agencies, including 50% by the Department of Health, Education, and Welfare, 21% by the Veterans Administration, and 18% by the Department of Defense. The bulk of the health expenditures by the Department of Defense and the Veterans Administration are for the provision of direct care and treatment, most of which is provided in their own hospitals and clinics. These two agencies also have sizable expenditures for health facilities, for training, and for support of health research. The Department of Health, Education, and Welfare, on the other hand, spends only a comparatively small portion of its health funds for direct medical care, principally for merchant seamen and Indians in Public Health Service hospitals. The bulk of the Department's health care outlays is for medical research and training and for grants to States and localities to cover medical expenses of public assistance recipients and assistance for medical care of the aged. The Department also spends substantial amounts through the Public Health Service for grants for construction of health facilities, for support of local and State community health, and for environmental health activities. The remaining 11%, or $0.7 billion, of the estimated expenditures in 1965 will be made by more than 15 other departments and agencies. Among these are the Agency for International Development and the Department of State which support health activities in other countries, the Atomic Energy Commission with its substantial biomedical research activities m the radiological field, the National Aeronautics and Space Administration with its rapidly growing research activities in space medicine, the Housing and Home Finance Agency which makes advances and loans for water and sewer facilities, and the National Science Foundation which underwrites basic research in biosciences. Federal health programs are developing on many fronts. Of the estimated increase of $1.1 billion in total expenditures in the 2 years from 1964 to 1966, 75%, $801 million, is in the Department of Health, Education, and Welfare, a growth of about 35% in 2 years for that agency. The combined increase of the Department of Defense and the Veterans Administration is $137 million, an overall increase of 6%. All other agencies show a net growth of $135 million or 24%, with the largest increases in the National Aeronautics and Space Administration and the Office of Economic Opportunity. The decrease which occurs in Department of Agriculture expenditures results because legislation is proposed to finance meat and poultry inspections on a self-supporting fee basis. There will be no reduction in the amount of service. Distribution of Federal health expenditures by category and by bene- ficiary group.—Table G-2 shows the distribution of the total Federal medical and health-related expenditures for the 3 fiscal years, 1964-66, by six categories. The preceding chart on estimated expenditures for 1966 depicts the distribution of the outlays in each category between the Department of Health, Education, and Welfare and all other agencies. 436 THE BUDGET FOR FISCAL YEAR 1966 Table G-2. FEDERAL EXPENDITURES FOR MEDICAL AND HEALTHRELATED ACTIVITIES BY CATEGORY (in millions of dollars) Category 1. Hospital and medical care in Federal facilities 2. Federal grants and payments for hospital and health care in non-Federal facilities 3. Medical research total (a) Conduct of research (b) Research facilities 4. Training, including training research 5. Prevention and community services 6. Construction of hospitals and health facilities Total expenditures from administrative budget and trust accounts 1964 actual 1965 estimate 1966 estimate 1,971.4 2,015.8 2,034.3 933.0 1,069.2 (1,003.0) (66.2) 298.4 392.8 438.5 5,103.3 1,083.5 1,351.5 1,132.5 1,292.1 (1,036.3) (1,179.9) (96.2) (112.2) 415.9 342.3 517.4 432.4 564.7 482.6 5,489.1 6,175.9 Of the total expenditures of $6.2 billion in 1966 for medical and health-related purposes, $3.4 billion or about 55% will be for provision of health care either directly in Federal facilities or financed by Federal grants or payments for services by non-Federal facilities. This is an increase of $481 million from 1964. The direct care expenditures amount to just over $2 billion, or 33%, of total expenditures. Most of this service is provided in hospitals of the Department of Defense, Veterans Administration, and the Department of Health, Education, and Welfare, which, in all, comprise almost 10% of all hospital beds in the United States. Table G-3 shows the number of hospital beds and the average daily number of patients during the 3 years 1964-66. The number of individual patients during any year is, of course, many times the daily census because hospital stays average 7 to 75 days for most agencies. In addition to this large number of inpatients, several million individuals each year receive outpatient care or treatment in the Federal facilities. Approximately one-sixth of the population in the United States is actually or potentially eligible for direct hospital care or medical treatment in Federal facilities based on estimates available at the end of calendar year 1964. Approximately 22 million living war veterans, including some 3 million with service-connected disabilities, comprise the largest single group of eligibles, although for ailments not related to service hospital care is provided only to the extent that Veterans Administration hospital facilities are available. Under the basic policy of limiting its hospital system to 125,000 beds, the Veterans Administration meets approximately half of the hospital care requirements of veterans with non-service-connected ailments. Active duty and retired uniformed service personnel numbering 3.1 million and their 4 million dependents are also covered. Approximately 2.5 million Federal employees are entitled to treatment for in-line-of-duty disabilities, although such injuries are comparatively infrequent. Other eligible groups include 380,000 American Indians and natives of Alaska, 125,000 American seamen, some 75,000 civilians 437 SPECIAL ANALYSES Table G-3. FEDERAL HOSPITALS, OPERATING BEDS, AND PATIENT LOADS By agency Number of hospitals: Defense Health, Education, and Welfare Veterans Administration Other Total Number of operating beds: Defense __ _ Health, Education, and Welfare _ _ _ Veterans Administration. _ (Nursing home beds included in total)_ ___ _ Other Total Average daily patient load: Defense Health, Education, and Welfare Veterans Administration (Nursing home beds included in total) Other Total.... 1964 actual 1965 1966 232 67 168 36 226 64 157 36 226 64 158 36 503 483 484 40,706 16.440 119,902 (0) 3,244 40,189 15,975 119,908 (406) 3,240 40,131 15,530 118,611 (1,645) 3.260 180,292 179,312 177.532 30,113 13,707 110,159 (0) 2,137 30,213 13,408 110,268 (350) 2,165 30,377 12,971 110.076 (1,510) 2,179 156,116 156,054 155,603 in the Panama Canal Zone, an estimated 60,000 narcotic addicts, 23,000 inmates of Federal prisons, and 1,500 patients with leprosy. With allowance for duplications in the above categories, an estimated 30 million Americans are eligible for all or part of their health care from Federal facilities. The second largest category of expenditures—$1.4 billion or 22% of the total—is for grants and payments for hospital and health care in non-Federal facilities. Grants by the Department of Health, Education, and Welfare for medical care through public assistance account for about four-fifths of the total. During 1966 an estimated 4 million persons will receive such aid, including under proposed legislation to establish a program for the children in medically indigent families similar to that which now exists for the aged. The Civil Service Commission provides health benefits to almost 2 million Federal civilian employees (90% of those eligible), and to 4.5 million of their dependents under the Federal Employees' Health Benefits Act. A similar program provides benefits for 235,000 retired Federal employees and their dependents. These payments are made from trust revolving funds into which are deposited both agency and employee contributions. Since the health benefits funds are revolving funds, with receipts offsetting expenditures, only the net effect of these transactions in the trust funds is included in the expenditures for this category. The Government's contributions amounting to $157 million in 1964, $167 million in 1965, and $172 million in 1966, are included in the administrative budget figures and are mostly classified in this category. The bulk of the remainder represents payments 438 THE BUDGET FOR FISCAL YEAR 1966 for care of Federal beneficiaries, principally by the Veterans Administration and the Department of Defense in those cases where Federal facilities are not available. Every citizen is benefited in one way or another by the health research, training, preventive and community services, and health construction activities of the Federal Government, which are discussed separately in following paragraphs. Expenditures for these activities will total $2.8 billion in 1966, an increase of $591 million from 1964. These categories account for 55% of the increase over 1964 in health outlays. The amount of increases over 1964 is greatest for health research and facilities ($223 million), but the other categories will have higher rates of increase: training (39%), preventive and community service activities (32%), and construction of health facilities (29%). Much of the increase in these programs reflects legislation enacted by the 88th Congress for assistance to schools and to students in medicine and dentistry, for programs to combat mental retardation and promote mental health, for emphasis in the hospital construction program on nursing homes and on modernization of existing facilities, and for increased Federal efforts for air pollution control. Other expanding areas include activities relating to water pollution, pesticides, community health, and food and drugs. About two-thirds of the $1.3 billion in Federal expenditures for health related research and research facilities are by the Department of Health, Education, and Welfare, particularly the National Institutes of Health, which alone account for $742 million. The Department of Defense, the Atomic Energy Commission, the National Science Foundation, and the National Aeronautics and Space Administration also make sizable outlays for health research. Training, including training for research, accounts for $416 million in 1966 expenditures. Again, the Public Health Service, and especially the National Institutes of Health, are the major sources, although the Department of Defense also spends significant amounts. Of the $517 million for preventive and community health services, $269 million will be spent by the Public Health Service, the Food and Drug Administration, and the Children's Bureau, all of the Department of Health, Education, and Welfare. The Federal Government's programs of assistance to underdeveloped countries are also responsible for about $75 million of the outlays and the Department of Agriculture programs account for most of the remainder. The Hill-Burton hospital construction program accounts for $223 million out of $565 million to be spent in 1966 for construction of facilities other than for research. The Veterans Administration's expenditures of $87 million represent the sixth year of that agency's 15-year hospital replacement and modernization program. The Department of Defense will also spend $51 million for construction. Proposed legislation.—A wide range of important health legislation has been proposed by the President. The 1966 budget includes new obligational authority of $293 million and expenditures of $197 million for the following items: (1) $58 million in estimated expenditures for regional multipurpose medical centers, initial staffing of community mental health centers, operating support of medical and dental schools, including scholarships, direct loans and loan guarantees for 439 SPECIAL ANALYSES group practice facilities, and mental retardation program development grants; (2) $12 million in environmental health grants to attack water pollution caused by combined storm and sanitary sewers, strengthen enforcement and control of air and water pollution, and demonstrations in the disposal of solid wastes; (3) $25 million for increased maternal and child welfare grants to provide diagnostic and health services to preschool and school-age children, and an additional $100 million in public assistance grants to finance vendor payments for treatment services for children from families which cannot afford to pay; and (4) $2 million in grants for vocational rehabilitation services to mentally retarded and severely disabled persons, for expansion of services through special projects,, and for construction and modernization of workshops. Other significant health proposals, which are covered by the general allowance for contingencies because the first-year costs would not be large, include special health research and other facilities, vaccination assistance, and health services for migrant families. A major proposal to provide hospital insurance for persons over 65 through the social security system will entail trust fund expenditures of only $20 million in fiscal year 1966 and a small amount of expenditures by the reserve for contingencies. However, the proposed payroll tax allocation to finance the program effective January 1, 1966, would produce estimated revenues of $600 million for the new trust fund in fiscal year 1966. Table G-4. FEDERAL EXPENDITURES FOR MEDICAL AND HEALTHRELATED PROGRAMS (in millions of dollars) Functional code Agency and program 1964 actual 1965 estimate 1966 estimate ADMINISTRATIVE BUDGET FUNDS National defense: Department of Defense: Hospital and medical care of military personnel and their dependents, retired personnel and their families on a space available basis, and civilian employees and their dependents overseas Research in preventive medicine, improved methods of caring for and rehabilitating the sick and injured, and studies relating to medical problems of military science Professional and technical training of personnel Construction of hospitals and medical facilities Construction of civil defense shelters in medical facilities. _ Department of Health, Education, and Welfare: Stockpiling of medical supplies Atomic Energy Commission: Research on the effects and use of radiation Total, national defense ___ _ 051 837.9 853.6 858.2 051 051 051 103.5 47.8 28.7 105.2 50.2 31.0 108.2 51.5 51.3 051 2.6 6.6 3.2 059 19.4 12.2 7.2 058 81.8 89.6 96.6 1,121.7 1,148.4 1,176.0 3.9 5.8 7.8 _ International affairs and finance: Peace Corps: Assistance to underdeveloped countries particularly for nursing and malaria eradication projects 152 440 THE BUDGET FOR FISCAL YEAR 1966 Table G-4. FEDERAL EXPENDITURES FOR MEDICAL AND HEALTHRELATED PROGRAMS (in millions of dollars)—Continued Agency and program functional code 1964 actual 1965 estimate 1966 estimate ADMINISTRATIVE BUDGET FUNDS—Continued International affairs and finance—Continued United States Information Agency: Medical care of Foreign Service officers who become ill abroad Agency for International Development: Alliance for Progress: Grants and loans for community health services and construction of health facilities Contributions to international organizations Grants, loans, and other assistance to underdeveloped countries in meeting their most pressing health problems Department of State: Contributions to international organizations, conferences, and medical and hospital care of Foreign Service personnel and their dependents Assistance to refugees from Communist countries, except Cuba Mutual educational and cultural exchange activities.. 153 0.3 0.3 0.3 152 152 23.0 13.9 21.0 14.3 24.0 14.1 152 54.3 54.4 57.7 151 14.1 15.8 17.5 152 153 .4 1.0 1.5 1.0 .3 1.0 110.9 114.1 122.7 251 28.3 61.8 65.1 — 355 99.8 112.8 125.8 Total, international affairs and finance Space research and technology: National Aeronautics and Space Administration: Research on health factors and human capabilities in advanced aerospace systems Agriculture and agricultural resources: Department of Agriculture: Plant and animal research; meat and poultry inspections Proposed legislation: Finance meat and poultry inspection on a self-supporting fee basis. _ 99.8 112.8 91.8 1.0 .1 1.4 .1 1.4 .1 1.1 1.5 1.5 506 2.1 4.0 2.4 553 41.9 37.5 42.0 Total, agriculture and agricultural resources. Natural resources: Department of Interior: Research on toxicological effects of pesticides on fish 404 and wildlife Care of 600 Aleut Indians in Pribilof Islands, Alaska. _ 404 Total, natural resources Commerce and transportation: Small Business Administration: Loans for construction and operation of nursing homes and other healthrelated facilities Housing and community development: Housing and Home Finance Agency: Advances and loans to local communities for construction of sewer, water, and other health-related facilities Proposed legislation: Grants for urban services and community facilities Total, housing and community development. -34.0 355 12.0 553 41.9 37.5 54.0 441 SPECIAL ANALYSES Table G-4. FEDERAL EXPENDITURES FOR MEDICAL AND HEALTHRELATED PROGRAMS (in millions of dollars)—Continued Agency and program Functional code 1965 1964 1966 stimate ADMINISTRATIVE BUDGET FUNDS—Continued Health, labor, and welfare: Department of Health, Education, and Welfare: Freedmen's Hospital: Operation of a community teaching hospital serving Howard University Medical School ._ 651 Saint Elizabeths Hospital; Hospital care for the mentally ill in the District of Columbia 651 Public Health Service: Health services for Indians... __ 651 Medical care of merchant seamen, narcotic addicts, and other Public Health Service beneficiaries 651 Quarantine act i vities 651 Grants and loans for construction of hospital and health facilities.__ _ _ 651 Support of medical, dental, and nursing education and training 651 Accident and disease prevention and control 651 Proposed legislation: Support for regional, multipurpose medical centers, initial staffing of community mental health centers, and operating support for medical and dental schools, including scholarships 651 Scientific activities overseas 651 Construction of health facilities (other than research) 651 Environmental health activities 651 Proposed legislation: Grants for separating combined storm and sanitary sewers, strengthen enforcement and control of air and water pollution, and demonstrations in control of solid 651 wastes 651 National Institutes of Health (research) Welfare Administration: 651 Grants for maternal and child welfare Proposed legislation: Grants for health services for 651 preschool and school age children Assistance to Cuban refugees and repatriated U.S. 653 nationals Public assistance grants for hospital and health care. 653 Proposed legislation: Grants for health care of 653 children from medically indigent families Vocational Rehabilitation Administration: Rehabilitation grants and research and training in problems 659 of handicapped individuals Proposed legislation: Grants for services to the severely disabled for expansion of services, and 659 for construction of workshops Food and Drug Administration: Enforcement of the 651 pure food and drug laws Department of Labor: Accident prevention and administration of Federal employees workmen's compensation program 652 Department of Interior: Health research related to mine 652 operations 655 Office of Economic Opportunity Total, health, labor, and welfare. 4.2 3.9 4.5 9.3 10.6 10.7 65.7 68.6 74.0 55.4 6.6 55.5 6.7 57.5 6.9 192.2 212.8 237.7 19.2 124.0 47.3 166.0 96.2 201.2 3.1 5.0 58.0 5.3 6.4 141.4 24.8 167.5 27.5 192.3 914.5 874.0 12.0 973.1 58.6 73.0 105.5 25.0 2.5 593.0 2.4 715.0 2.1 785.0 100.0 32.9 39.2 46.6 2.0 38.3 41.3 55.7 6.6 7.0 6.7 .4 .3 3.0 .3 20.0 2,274.3 2,523.9 3,105.8 442 THE BUDGET FOR FISCAL YEAR 1966 Table G-4. FEDERAL EXPENDITURES FOR MEDICAL AND HEALTHRELATED PROGRAMS (in millions of dollars)— Continued Functional code 1964 actual 1965 estimate 1966 estimate ADMINISTRATIVE BUDGET FUNDS-Continued Education: Department of Health, Education, and Welfare: Practical nurse training. _ Defense educational activities National Science Foundation: Support of basic research in health-related fields 704 702 4.9 3.0 4.9 3.2 5.0 4.0 703 28.5 25.9 35.1 36.4 34.0 44.1 804 1,229.1 1,280.0 1,315.0 906 908 10.1 3.6 10.5 3.9 11.9 7.9 906 24.3 27.0 29.2 905 .1 2.1 .5 910 6.0 7.2 7.5 44.1 50.7 57.0 Contributions by Federal agencies to employees' health benefits fund not included above 121.0 127.5 131.0 Total net administrative budget expenditures for health 5,110.7 5,496.2 6,166.4 411.2 -425.9 476.2 -490.3 529.8 -547.4 -14.7 -14.1 -17.6 Total, education Veterans benefits and services: Veterans Administration: Hospital, domiciliary, and outpatient care of veterans including medical research and construction and modernization of facilities General government: Department of Labor: Hospital and medical care for Federal employees injured in line of duty Department of Justice: Medical care of prisoners _ Civil Service Commission: Government contribution to Federal employees' health benefit funds for retired employees and annuitants -_ General Services Administration: Matching grant for a hospital in Southeast Washington, D.C Panama Canal: Medical and hospital care for civilian and military personnel, sanitation and quarantine Total, general government TRUST FUNDS Civil Service Commission (revolving funds): 654 Expenditures for employee health benefits Receipts from employee and Government contributions. Net expenditures from trusts revolving funds Department of Health, Education, and Welfare: Social Security Administration: Expenditures for hospital insurance for the aged 654 United States Soldiers Home: Hospital and domiciliary care of retired and disabled enlisted personnel of the Regular Army and Air Force __ 805 Total net trust fund expenditures for health Total budget and trust fund expenditures for health. 20.0 7.3 7.0 7.1 -7.4 -7.1 9.5 5,103.3 5,489.1 6,175.9 SPECIAL ANALYSIS H FEDERAL RESEARCH, DEVELOPMENT, AND RELATED PROGRAMS In 1966 the Federal Government will continue to be a major source of funds for research and for development.1 Total obligations for the conduct of research and development are estimated to increase modestly over 1965, chiefly for scientific research. Expenditures for the conduct of research in 1966 will also increase while expenditures for development will decline. Because the support of research and the financing of development constitute separate but related categories of effort, this special analysis deals with them individually and with the support of facilities required for both these activities. In addition, it presents information on certain special fields of science which are of broad national interest and involve programs of several Federal agencies. The Federal Government finances development to design, fabricate, test, and evaluate prototypes of materials, devices, systems or processes needed to accomplish specific agency missions. These include prototypes of complex devices such as military weapons, space vehicles, and nuclear reactors and of "systems" for such purposes as air defense and aircraft traffic control. Research on the other hand is supported not only to accomplish agency missions—usually as a forerunner to development—but also to increase the broad body of scientific and technical knowledge which underlies the future advancement of the Nation's welfare, economic growth, and security. This is particularly true of basic research conducted primarily in academic institutions but also in Government, industrial, and other laboratories focusing on fundamental problems in science. Development.—Federal obligations for development will increase only slightly from 1965 to 1966. The continued buildup in the manned space flight program of the National Aeronautics and Space Administration will be offset in part by decreases in other NASA development programs and in the development programs of the Department of Defense and the Atomic Energy Commission. Major Defense development programs are continuing in 1966 and new programs are being initiated such as the C-5A large cargo transport aircraft and an air-to-surface attack missile system. But the successful development, testing, and evaluation of the large current strategic weapons systems will permit a small reduction in Defense obligations for development and a larger reduction in expenditures. The decrease in the development programs of the Atomic Energy Commission is primarily related to reduced development in connection with special 1 Generally excluded from this analysis are funds for routine testing, experimental production, information activities, and training programs. This analysis also omits funds for research performed independently by contractors within overhead arrangements on some procurement contracts funded in Department of Defense procurement accounts and for the collection of general-purpose statistics by the Census Bureau and other agencies. Note.—-Totals in text tables may not add due to rounding. 443 444 THE BUDGET FOR FISCAL YEAR 1966 nuclear materials production and the achievement in 1965 of a capability to resume atmospheric testing of weapons should the limited nuclear test ban treaty be violated by others. Administrative Budget Obligations for Development Table H-l. OBLIGATIONS AND EXPENDITURES FOR THE CONDUCT OF DEVELOPMENT * (in millions of dollars) Expenditures Obligations Agency 1965 1966 1964 1965 1966 5,489 Department of Defense National Aeronautics and Space Administration.. 3,210 933 Atomic Energy Commission _ _ 147 Other _ . 5,136 3,768 939 137 4,972 3,878 929 217 5,779 2,730 933 111 5,355 3,154 939 168 4,921 3,442 929 184 9,779 9,980 9,996 9,553 9,617 9,476 1964 Total i In this table and tables H-2 through H-4 for agencies other than the Department of Defense and NASA the "obligations" are generally "new obligational authority," which approximates "obligations' for analysis purposes. In this table and tables H-2 and H-3, "obligations" and "expenditures" for the AEC are accrued costs, which approximate obligations and expenditures for analysis purposes. Nearly four-fifths of the Federal funds for development are estimated to be spent through contracts with industry and the balance chiefly in federally operated centers, particularly those of the Department of Defense, the National Aeronautics and Space Administration, and the Atomic Energy Commission. 445 SPECIAL ANALYSES Research.—To sustain a vigorous national research effort in an age of expanding technology, the Federal investment in research will continue to increase from obligations of $5 billion in 1965 to $5.5 billion in 1966. This increase is particularly reflected in the programs of basic and applied research to accomplish the long-range mission objectives of the Department of Defense; in the medical, environmental health, and educational research programs of the Department of Health, Education, and Welfare; and in the general support of basic research through the National Science Foundation. Administrative Budget Obligations for Research Table H-2. OBLIGATIONS AND EXPENDITURES FOR THE CONDUCT O F RESEARCH 1 (in millions of dollars) Obligations Agency 1964 Department of Defense 1,769 National Aeronautics and Space Administration. _ 109 Atomic Energy Commission 303 759 Department of Health, Education, and Welfare __ 170 National Science Foundation 171 Agriculture _ 182 Other IIIIIIIII Total 1 Includes funds for basic and applied research. 4,463 1965 1966 Expenditures 1964 1965 1966 1,860 2,114 1,654 1,757 1,864 333 301 1,003 1,222 1,251 330 363 303 330 363 858 961 741 726 847 212 290 145 207 158 213 221 169 226 208 217 247 171 206 232 5,023 5,497 4,187 4,608 4.991 446 THE BUDGET FOR FISCAL YEAR 1966 Federally supported research is carried out in Government and industrial laboratories, universities, and other nonprofit research institutions. Industrial laboratories and university laboratories, including those administered under contract with the Federal Government, each performed about one-third of the research supported by the Federal Government in 1963. The proportion of research funds from all sources, both Federal and non-Federal, spent in universities has risen from less than 20% in 1958 to about 25% in 1963 and should continue to rise through 1966, reflecting the increasing significance of academic science activities, particularly basic research, in the long-range national interest. Universities have traditionally been the main source of new ideas in science through research carried out by faculty members assisted by graduate students. The interaction of research and education in academic institutions thus contributes both to the advancement of research and to the training of scientific and technical manpower. Special attention has been given in the preparation of the 1966 budget to insuring an adequate rate of growth in Federal support of basic research in academic institutions. Basic research, which is that portion of scientific research concerned with increasing knowledge about man, his world, and the universe, lays the groundwork for later applied research and development and has been a major factor in maintaining our country's leadership in the sciences and technology in recent decades. As the following table indicates, the 1966 budget provides for continued growth in this important sector of the Nation's scientific activities. Table H-3. OBLIGATIONS AND EXPENDITURES FOR THE CONDUCT OF BASIC RESEARCH 1 (in millions of dollars) 1964 Department of Defense. _ National Aeronautics and Space Administration. _ Atomic Energy Commission Department of Health, Education, and Welfare. _ National Science Foundation Agriculture Other Total.__. 1 Expenditures Obligations Agency 1965 1966 1964 1965 1966 260 756 238 265 170 62 57 293 910 260 298 212 82 63 324 888 286 330 290 85 69 236 690 238 261 145 62 52 268 817 260 252 158 82 58 293 847 286 294 207 90 1,808 2,118 2,272 1,683 1,896 2,077 61 Amounts are included in conduct of research, table H-2. Research and development facilities.—The decrease in 1966, particularly in obligations for research and development facilities, primarily reflects reductions in the National Aeronautics and Space Administration program due to the completion of major funding for test facilities and launch complexes required for the manned lunar landing program. Amounts for the Atomic Energy Commission also decline as previously authorized facilities are completed and fewer new construction projects are initiated. 447 SPECIAL ANALYSES Table H-4. OBLIGATIONS AND EXPENDITURES FOR RESEARCH AND DEVELOPMENT FACILITIES (in millions of dollars) Department of Defense National Aeronautics and Space Administration. _ Atomic Energy Commission Department of Health, Education, and Welfare __ National Science Foundation _ Agriculture Other Total Expenditures Obligatioi I S Agency _ _ 1964 1965 1966 1964 1965 91 547 230 70 60 14 36 77 660 420 100 62 15 37 110 172 226 89 67 24 20 84 438 267 46 50 5 45 110 524 300 75 48 16 58 95 406 264 86 58 18 50 1.048 1.371 708 935 1.131 977 1966 Descriptions of the content and trends of the major Federal research and development programs are provided by agency in the following sections of this analysis. There are also included in this analysis summary data by agency on total Federal support for several selected research and development activities of the Federal Government—such as oceanography and atmospheric sciences—which, because of their broad national importance, are coordinated on a Government-wide basis. PROGRAMS OF AGENCIES WITH MAJOR RESEARCH AND DEVELOPMENT ACTIVITIES DEPARTMENT OF DEFENSE—MILITARY The programs of the Department of Defense include basic and applied research; exploratory, advanced, and engineering development of new components and systems with possible military applications ; and development of weapons systems approved for introduction into the operational forces. The principal amounts for these purposes and for the operation of research and testing facilities of the Department are carried in the budget in the research, development, test, and evaluation appropriations. As indicated in table H-5, certain supporting amounts are provided in the military personnel, procurement, operations and maintenance, and military construction appropriations. Research and development related to civil defense is financed under that heading. Total research and development activities are essentially stable between 1965 and 1966. Expenditures decline in 1965 and 1966, as shown in table H-5 because of the decrease in obligations from 1964 to 1965. However, total obligations for research and development activities will be slightly higher in 1966 than in 1965 as indicated in table H-5. Of the totals shown in table H-5 for 1966, 4% is for basic scientific research with about 27% providing for all research including experi- 448 THE BUDGET FOR FISCAL YEAR 1966 ments with extensive equipment requirements. Approximately 73% is for development, test, and evaluation of new military weapons and equipments. The total amounts for basic and applied research will increase in 1966 as shown in tables H-2 and H-3. Development of components and subsystems for future strategic weapons, as well as weapons for conventional and limited war is also expected to increase. However, as major strategic weapon system development programs such as Minuteman decline, there will be an overall reduction in development of funding as indicated in table H - l . The composition of the programs of the Department by major fields of effort is shown in table H-5. Development of the new tactical fighter aircraft for use by both the Navy and the Air Force as well as smaller aircraft to provide air support and mobility for the ground forces will continue in 1966. Development of the new large C-5A cargo transport aircraft will be initiated. Missile developments include the Army's project for an improved antiballistic missile known as Nike-X, the Navy's Polaris program, and the Air Force programs for an improved version of Minuteman and a new air-to-surface attack missile system. Included in military astronautics are such space programs as the manned orbiting laboratory program, reentry and recovery technology Table H-5. OBLIGATIONS A N D E X P E N D I T U R E S OF T H E D E P A R T M E N T OF DEFENSE—MILITARY—RESEARCH A N D DEVELOPMENT (In millions of dollars) Purpose and budget title Obligations for the conduct of research and development: Research, development, test, and evaluation: Military sciences Aircraft and related equipment Missile and related equipment Military astronautics and related equipment Ships, small craft, and related equipment Ordnance, combat vehicles, and related equipment. _. Other equipment Program wide management and support Emergency fund 1964 actual 1965 estimate 1966 estimate 939.4 993.1 2,141.2 1,275.2 250.3 312.3 518.5 442.9 997.2 1,148.0 1,791.5 910.4 273.5 328.6 586.7 445.8 118.3 1,022.2 991.9 1,758.0 1,033.9 321.6 372.3 606.8 443.3 150.0 6,872.9 263.0 70.0 40.1 11.8 6,600.0 277.5 65.0 41.1 12.4 6,700.0 265.1 70.0 35.2 15.0 7,257.8 6,996.0 7.085.3 90.6 76.6 110.2 Total, direct obligations for research and development 7,348.4 7,072.6 7,195.5 Total expenditures for research and development. __ 7,512.9 7,217.7 6,875.3 Total, direct obligations, research, development, test, and evaluation Military personnel Procurement Operations and maintenance Civil defense Total, direct obligations, for the conduct of research and development Obligations for research and development facilities: Military construction SPECIAL ANALYSES 449 programs and basic engine and vehicle development efforts, such as the Titan III multipurpose space booster program. Totals for the military space program are given in table H-13. The research and development totals also include substantial and increased effort in the various aspects of antisubmarine warfare research and development and in the development of improved combat vehicles for use by our land forces. Provision is also made for support of Governmentowned laboratories and test installations such as the Atlantic and Pacific missile ranges. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION All the activities of the National Aeronautics and Space Administration are classified as research and development for purposes of this special analysis. The National Aeronautics and Space Administration is responsible for the development, test, and operation of spacecraft and vehicles for manned and unmanned exploration of space and other nonmilitary applications, and for conducting the broad programs of supporting research and development required for these purposes. In addition, NASA is responsible for conducting research to advance aircraft technology in support of both military and civilian interests. The nature and estimated composition of the research and development programs of NASA are shown on table H-6. Total expenditures for NASA in 1966 are estimated at $5.1 billion, an increase of only $200 million over the estimate for 1965 compared to average annual increases of over $1 billion per year in the previous 4 years. The reduced rate of increase reflects the leveling off in total new obligational authority—the 1966 recommendation is $5.26 billion compared to $5.25 billion in 1965—after a series of large annual increases in 1964 and prior years. The momentum of ongoing programs can now be maintained and important new projects started without further significant increases in the total, as increased requirements in some areas are offset by reductions as other projects pass their funding peaks or are completed or terminated. Expenditures in the research program increase only slightly from 1965 to 1966. The greatest increase in 1966 expenditures is in the manned space flight development program, largely for services and equipment contracted for in prior years, while reductions in the other development programs reflect the termination and phasing out of some advanced development projects. Expenditures for facilities are estimated to reach a peak in 1965 and begin to decline in 1966 as work on major portions of the manned lunar landing construction program is completed. The programs of basic scientific research include unmanned investigations of the space environment with deep space probes, earth satellites, and sounding rockets. A major new project for the unmanned exploration of Mars will be initiated in 1966. An unmanned spacecraft, 10 to 15 times the size of the current Mariner probe, will be developed. This spacecraft, called Voyager, is to carry a landing capsule capable of providing accurate information on the existence of life OP the red planet. Emphasis in 1966 will also continue to be placed on the investigations conducted with large orbiting solar, geophysical, and astronomical observatories. NASA also supports basic research in space sciences at universities, and both basic and 750-000 O—165 29 450 THE BUDGET FOR FISCAL YEAR 1966 applied research in fields applicable to space and aircraft technology at NASA research centers and through grants and contracts with universities and industry. NASA activities classified as development continue to be devoted primarily to the manned lunar landing program. This consists primarily of the development and testing of the three-man Apollo spacecraft and the Saturn launch vehicles, and the two-man Gemini program which is moving into its manned flight operations phase. Other development effort is continuing on meteorological and applications technology satellites, the NERVA nuclear propulsion engine system, and numerous small-scale engineering developments to advance space technology. Table H-6. EXPENDITURES OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION FOR RESEARCH AND DEVELOPMENT (in millions of dollars) 1964 actual Program and type of activity Conduct of research: Basic scientific research in space: Spacecraft, instrumentation, conduct of experiments, and supporting costs Procurement and development of launch vehicles for research purposes Other basic research in space science and technology Subtotal, basic research Other research _ Total, conduct of research Conduct of development: Manned space flight and supporting development. _ _ _ Other development _ Total, conduct of development __ _ Research and development facilities: Manned space flight and supporting facilities Other research and development facilities Total, research and development facilities Total, National Aeronautics and Space Administration 1965 estimate 1966 estimate 408.4 478.0 527.0 207.0 74.3 238.0 101.1 219.0 100.6 689.7 313.5 817.1 405.3 846.6 404.9 1,003.2 1,222.4 1,251.5 2,474.9 255.1 2,855.8 297.8 3,226.2 216.3 2,730.0 3,153.6 3,442.5 346.0 91.8 418.2 105.8 327.7 78.3 437.8 524.0 406.0 4,171.0 4,900.0 5,100.0 ATOMIC ENERGY COMMISSION The Atomic Energy Commission's research and development programs account in 1966 for more than 60% of AEC's annual expenditures. Research programs, which in 1966 constitute approximately 28% of the total conduct of research and development, are conducted in the physical and biomedical sciences to secure a better understanding of nuclear structure, nuclear processes, and the effects of nuclear radiation on living organisms and systems. Of the total funds programed for research, about 80% is considered to be basic or fundamental research. The development programs include efforts to 451 SPECIAL ANALYSES improve the processes used in the production of special nuclear materials, to develop improved types of nuclear weapons, and to improve the means of obtaining harnessed energy from nuclear reactions. The major elements of the AEC research programs are in the physical and biomedical sciences. The physical research program, which increases by 12% in 1966, comprises research in high, medium, and low energy physics and in those aspects of chemistry, metallurgy, and mathematics of particular importance to nuclear science and technology. In addition, there is a continuing program to achieve a controlled thermonuclear reaction for possible generation of power. Of special interest in 1966 are AEC's plans to construct in the Midwest the world's largest bubble chamber for detection and analysis of elementary particle interactions and to initiate design for an eightfold increase in the intensity of the world's highest energy proton accelerator at Brookhaven National Laboratory. There will be a slight decline in 1966 in expenditures for AEC development programs due to reduced development in connection with the production of special nuclear materials and achievement in 1965 of a readiness capability to resume atmospheric testing of weapons in the event of violation by others of the limited nuclear test ban treaty. AEC's reactor development program includes efforts to develop economic nuclear power reactors, nuclear rockets (Project Rover), compact nuclear electric power sources for space and other remote applications (Project SNAP), military power and propulsion reactors, and to broaden the base of reactor technology. In 1966, particular emphasis will be placed on advanced reactors, which make improved use of nuclear fuel, for power and combined power and water desalting applications. Two major cooperative power reactor projects will be initiated to this end. Work will also continue on the development of "high-gain breeder" reactors which would produce significantly more fuel than they consume. In addition, AEC will place emphasis on development programs for the peaceful uses of isotopes and nuclear explosives. The AEC research and development programs are carried on in contractor-operated laboratories, in universities, in other private research institutions, and by private industry. In support of the conTable H-7. EXPENDITURES OF THE ATOMIC ENERGY COMMISSION FOR RESEARCH AND DEVELOPMENT (in millions of dollars) Program Conduct of research and development 1964 actual Special nuclear materials and weapons Reactor development Physical research Biology and medicine Other research and development Total, Atomic Energy Commission. 1965 1966 446.2 462.8 436.7 502.3 494.1 500.5 195.8 214.0 239.0 78.) 85.0 71.0 20.6 31.0 20.7 1,236.0 1,269.6 1,292.2 Research and development facilities 1964 1965 63.9 104.8 89.1 7.2 1.7 82.1 117.4 89.4 8.2 2.5 62.0 99.3 92.2 8.3 2.6 266.8 299.6 264.3 1966 452 THE BUDGET FOR FISCAL YEAR 1966 duct of research and development, AEC provides laboratory facilities, research equipment and large research machines, such as nuclear reactors and particle accelerators. In 1966 more than one-third of such capital expenditures will be in support of research in contrast to development. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE The expenditures for research and development by the Department will increase from $805 million in 1965 to $942 million in 1966. This increase is primarily in the National Institutes of Health and other elements of the Public Health Service and reflects continued growth of programs on prevention and treatment of mental illness and mental retardation. In addition to the $42 million spent in 1965, $6 million is included to expand environmental health activities; primarily to study the longterm effects of pollution on human health and to initiate a new program of university institutes for research and research training in environmental health sciences. The increase in expenditures for the Food and Drug Administration reflect additional research on the harmful effects of foods, drugs, cosmetics, and therapeutic devices. The Office of Education will increase its expenditures for invention and testing of new ways of learning, including design of curricular materials. Under legislation included in the President's education recommendations this effort will be substantially expanded through centers available to all regions of the Nation. Teachers, other educators, historians, writers, artists, and other practitioners will contribute to this effort to be focused on all subjects and levels of education. Authorizations for Office of Education programs will total $98 million in 1966, an increase of $61 million over 1965 primarily for the development of regional educational laboratories. NATIONAL SCIENCE FOUNDATION Expenditures of the National Science Foundation for the support of basic research and research facilities are estimated at $266 million, compared with $208 million in 1965 and $197 million in 1964. The major emphasis in 1966 is on providing an adequate rate of growth in Federal support for research in colleges and universities. Increases are also included for the Antarctic research program; for the weather modification program; and for specialized research facilities. An ocean sediment coring program will be initiated in 1966. Support will be continued for the Indian Ocean Expedition; Project Mohole, a program of research in the geology and geophysics of the deeper layers of the earth; the United Statesi-Japan cooperative science program; the International Year of the Quiet Sun; and matching grants for facilities related to research and science training. Research programs aad facilities will be strengthened at the National Center for Atmospheric Research and at the three astronomical observatories supported by the Foundation. SPECIAL ANALYSES 453 DEPARTMENT OF AGRICULTURE Expenditures of the Department of Agriculture for research and development are estimated at $256 million in 1966 as compared with $236 million in 1965 and $182 million in 1964. The net increase of $20 million is composed of a number of expanded research activities, partly offset by the reductions of low priority work. Additional funds will be available for staffing and operating new farm and utilization research laboratories and for additional support for the senior scientific staff. Research will be expanded on health-related problems of tobacco, toxin-producing molds, and on meat animal and other livestock. Additional funds will strengthen research on forest fire protection, for expanding markets for timber products, for improving income opportunities of owners of small woodlots, and for timber utilization. There will also be an increase in the Department's grant program to the States for the conduct of State research and development and in its economic research activities. Research projects overseas, financed from foreign currencies accruing under Public Law 480, will also be expanded. Funds are being requested for the construction of new pesticides and forestry laboratories and facilities for livestock, poultry, and cotton research. Construction funds will also be available to modernize and rehabilitate portions of the National Agricultural Research Center and to construct a new National Agricultural Library at Beltsville, Md. Planning funds for most of these facilities were made available in 1964 and 1965. Reductions will be made in farm, utilization, and forestry research as a result of closing out low priority work at 54 separate locations. A reduction will also be made in the Department's program of facility grants to the State experiment stations. DEPARTMENT OF THE INTERIOR Expenditures of the Department of the Interior for research and development are estimated at $129 million, compared with $116 million in 1965 and $98 million in 1964. About 22% of the 1966 amount will be spent on development programs including the construction of research facilities, 53% on applied research, and the remainder on basic research. Programs of the Bureau of Mines, Fish and Wildlife Service, Geological Survey, Office of Coal Research, and the Office of Saline Water, make a significant contribution to the research and development activities of the Department. The 1966 budget provides for continuing research directed primarily at improving the conservation and use of water, parks and monuments, fish and wildlife, minerals, and other natural resources. Studies of the effects of pesticides on fish and wildlife, and the biological aspects of the national oceanographic program will be continued. A major increase is provided to accelerate development of economical desalting processes applicable to a wide range of water supply problems, both here and abroad. The 1966 budget also provides for full year operation of the Office of Water Resources Research, created to administer the Water Resources Research Act of 1964. Under this act, States will receive Federal grants to establish water resources research centers in State colleges or universities. Grants will also be available on a 454 THE BUDGET FOR FISCAL YEAR 1966 matching basis to support research in these centers. Geophysical and geochemical studies of the upper mantle of the earth's crust that may ultimately improve the technology of locating deep-lying mineral deposits are scheduled for further expansion. Ongoing research in earthquake seismology will be sharply accelerated in 1966. Programs to increase the use of and expand the markets for coal and coal products will increase. DEPARTMENT OF COMMERCE New obligational authority increases by $21 million chiefly for a new, major research program to improve intercity ground transportation. In 1966 this program will spend about $20 million for demonstrations of high speed rail transit and investigation of other technological improvements. National Bureau of Standards new obligational authority for the conduct of research increases by $4 million, chiefly for expansion of the National Standard Reference Data System and further improvements in Federal science information handling and dissemination. Also, $3 million is included for additional work in experimental and applied meteorology by the Weather Bureau. Bureau of the Census research on methods of taking the Nineteenth Decennial Census through mail enumeration and automated procedures decreases by $0.8 mUlion as this program moves into the test and evaluation stages. These increases are partially offset by a decrease in construction. SELECTED GOVERNMENT-WIDE SCIENTIFIC ACTIVITIES OF THE FEDERAL GOVERNMENT The following section presents a number of scientific activities of the Federal Government on a Government-wide basis. In these fields, and in many other fields, the Office of Science and Technology, in cooperation with the President's Science Advisory Committee and the Federal Council for Science and Technology, is active in improving the planning, coordination, and review of Federal research and development programs. Expenditures for these scientific and technical activities are included in the agency expenditures shown elsewhere in this analysis. MEDICAL RESEARCH Federal expenditures for medical and health-related research activities are estimated at $1.3 billion in 1966. Nearly 60% of the amount is expended by the National Institutes of Health, a component of the Public Health Service, Department of Health, Education, and Welfare. The increases in 1965 reflect the rapid growth of the new Institute of Child Health and Human Development and expanded grant programs for specialized research centers. The programs for mental health research and service increase by about $10 million. Over $40 million of NIH funds will go to industrial firms for testing and evaluation of new chemicals and drugs for the treatment of cancer, cardiovascular diseases, and mental illness. Other organizations in the Department of Health, Education, and Welfare are also expanding their programs. The Food and Drug Administration is strengthening its research programs and research in the area of 455 SPECIAL ANALYSES environmental pollution will be expanded by the Public Health Service. The medical research programs of all other agencies are increased moderately. Table H-8. EXPENDITURES OF FEDERAL AGENCIES FOR MEDICAL AND HEALTH RELATED RESEARCH (in millions of dollars) Agency 1965 estimate 1964 actual Department of Health, Education, and Welfare: Public Health Service X. (National Institutes of Health) Other Total, Department of Health, Education, and Wei fare Department of Defense Atomic Energy Commission National Aeronautics and Space Administration Veterans Administration Department of Agriculture National Science Foundation Other Total, medical and health related research Total, conduct of research Total, research facilities 747.8 (675.0) 14.6 750.4 (650.1) 20.5 1966 estimate 866.4 (742.3) 30.1 762.4 103.5 81.8 28.3 34.1 28.4 28.4 2.3 770.9 25.8 3.5 896.5 108.0 96.6 65.1 45.9 41.3 35.0 3.7 1,069.2 1,003.0 ,132.5 ,036.3 ,292.1 ,179.9 66.2 96.2 112.2 105.2 89.6 61.8 41.3 34.4 ATMOSPHERIC SCIENCES The atmospheric sciences are concerned with the physical and chemical properties, composition, behavior, and processes of the earth's atmosphere and the atmospheres of other planets. In the following table research and development activities only are reported. Weather services programs will be reported separately in a detailed plan prepared by the Federal Coordinator for Meteorological Services and Supporting Research, Department of Commerce. Table H-9. OBLIGATIONS OF FEDERAL AGENCIES FOR ATMOSPHERIC SCIENCES (in millions of dollars) Agency Departments of: Agriculture Commerce Defense Health, Education, and Welfare Interior Atomic Energy Commission Federal Aviation Agency National Aeronautics and Space Administration National Science Foundation Total 1964 actual 1965 estimate 1966 estimate 6.2 .9 106.5 22.7 0.5 13.9 72.2 2.0 1.9 7.0 2.2 74.5 20.2 0.7 17.1 79.9 2.2 1.7 7.9 2.4 81.4 26.2 225.0 194.4 219.5 0.5 15.1 70.5 1.6 1.0 456 THE BUDGET FOR FISCAL YEAR 1966 Overall funding for atmospheric research is significantly influenced by fluctuations in the costs of satellite development and flight activities. These costs totaled $105 million in 1964 and $67 million and $68 million in 1965 and 1966 respectively (data excludes cost of launch and launch vehicles). Exclusive of satellite programs, funding for atmospheric sciences increased an average of 14% per year from 1962 through 1965. A 17% increase is proposed in 1966. Increased funds for the National Science Foundation will permit expansion of basic research activities in the universities and at the National Center for Atmospheric Research, where the lease of a significantly larger computer will enable scientists to attack more complex research problems. New facilities and equipment to increase the reliability of high altitude balloon launches will also be financed by the Foundation. The largest new Department of Defense project involves development of equipment to launch meteorological sounding rockets from airplanes for use over the oceans. * The Weather Bureau, Department of Commerce, will augment its work in experimental meteorology. The Federal Aviation Agency will increase its activities related to the acquisition and processing of data having specialized aviation applications. Within the atmospheric sciences there are three principal fields of interest: (1) meteorology, primarily concerned with phenomena occurring within 50 kilometers of the earth's surface; (2) aeronomy or upper atmosphere research, concerned with phenomena at greater altitudes; and (3) studies of planetary atmospheres. The distribution of Federal support is as follows: Table H-10. OBLIGATIONS FOR ATMOSPHERIC SCIENCES BY FUNCTIONAL AREA (in millions of dollars) 1964 actual Meteorological research and service system development Upper atmosphere research Studies of planetary atmospheres. _ Total 1965 estimate 1966 estimate 122.8 98.9 3.3 93.7 96.8 3.9 116.3 97.9 5.3 225.0 194.4 219.5 Included in the amounts shown above for meteorological research are $42 million in 1965 and $52 million in 1966 for applied research and development whose principal purpose is to improve operational weather services. Slightly more than half of these amounts is for development of components for use in an operational meteorological satellite system. Projects to improve operational weather services are also reported in the detailed plan prepared by the Federal coordinator. OCEANOGRAPHY The national oceanographic program represents the coordinated research and survey efforts of nine agencies to improve our understanding of the oceans in tfre pursuit of such national interests as defense, the exploitation of food and mineral resources, the improvement of weather forecasting, and the prevention of pollution. To SPECIAL 457 ANALYSES achieve these goals the properties of the ocean must first be understood, and thus the largest effort and the major program increase is directed to ocean research. The research program is directed to describing and understanding the physical and chemical properties of the "world ocean/' the effect of the interrelationship of the ocean and the atmosphere, the distribution of marine organisms, the structure of the ocean floor and its history, and the modifications of the ocean by human activities. The survey program provides basic data necessary for research, exploration, and use of the oceans. Table H - l l . OBLIGATIONS FOR OCEANOGRAPHY BY FUNCTIONAL AREA (in millions of dollars) Functional area Research Surveys. _ __ . 1964 _ Subtotal, operating programs. _ Ship construction. _ _ ____ Facilities construction Instrument and equipment procurement Subtotal, capital program Total __ __ _ _ __ 1965 1966 62.0 24.1 72.5 27.1 85.0 30.6 86.1 99.0 115.6 25.5 5.1 6.4 20.7 6.0 8.8 13.4 4.4 8.2 37.0 35.5 26.0 123.1 135.1 141.6 As shown in table H-l 1 above the funds devoted to oceanographic research and survey programs will continue to increase significantly in 1965 and 1966. However, with the construction and conversion of 42 ships completed or authorized from 1960 through 1965, expenditures for capital programs will decline in 1966. This largely accounts for the decrease in obligations of the Departments of Commerce and Interior shown in table H-12 below. TableH-12. OBLIGATIONS OF FEDERAL AGENCIES FOR OCEANOGRAPHY (in millions of dollars) Agency Departments of: Commerce Defense Health, Education, and Welfare Interior State Treasury Atomic Energy Commission National Science Foundation Smithsonian Institution Total 1964 actual 1965 estimate 1966 estimate 13.3 68.0 4.4 23.3 54.6 2.9 16.5 .6 1.2 3.8 19.6 .6 19.9 65.1 3.5 20.0 .6 1.8 4.0 19.3 .9 .6 2.1 4.6 30.0 f.7 123.1 135.1 141.6 16.9 The programs of the several agencies which comprise the national oceanographic program have been developed to meet their mission 458 THE BUDGET FOR FISCAL YEAR 1966 needs in consultation with the membership of the Interagency Committee on Oceanography of the Federal Council for Science and Technology. The Committee has attempted through its work to identify and advise agencies on new opportunities in ocean research, exploration, and equipment development; and to assemble a balanced program that avoids duplicate efforts and insures maximum exchange of information. SPACE PROGRAMS As shown on table H-13, expenditures for the total Federal space programs are estimated at $6.9 billion in 1966, a $230 million increase over 1965. New obligational authority increases $130 million during the same time period. Virtually all of the amounts for the space programs are classified as research and development and are included in the totals in this special analysis. Table H-13. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES FOR FEDERAL SPACE PROGRAMS (in millions of dollars) NEW OBLIGATIONAL AUTHORITY Agency National Aeronautics and Space Administration 2 Department of Defense Atomic Energy Commission. Department of Commerce: Weather Bureau National Science FoundationTotal 1 EXPENDITURES 1964 1965 1966 1964 1965 5,046.6 1,604.1 210.0 5,179.8 1,546.7 236.0 5,181.6 1,670.2 225.2 4,131 .3 1 .5 220 .1 4,837.3 1,570.0 231.2 5,031.5 1,610.0 227.9 2.8 3.0 15.4 3.1 33.1 3.8 12 .3 2 .6 15.0 3.0 16.6 3.6 6,866.5 6,981.0 7,113.9 5,929 .8 6,656.5 6,889.6 1966 Excludes aircraft technology. The amounts shown for the National Aeronautics and Space Admin istration cover all activities of that agency except those specifically identified with aircraft technology. In 1966, more than two-thirds of the NASA funds will be devoted to the Apollo program to achieve a manned lunar landing before the end of the decade. In addition to continuing current programs of scientific investigations and supporting research, the 1966 budget provides for new projects for the unmanned exploration of Mars and unmanned satellite observation of the Sun. The estimates for the Department of Defense include the projects in the Department's astronautics budget activity and certain amounts in other budget activities which contribute to the space effort, such as missile development, range operations, and various supporting research, development, and operating costs. The defense funds for 1966 include increases for the manned orbiting laboratory program and research on reentry and recovery of spacecraft, ajnd amounts for continuing development of the Titan III space booster and the initial communications satellite system. For the Atomic Energy Commission, the table includes amounts for development of nuclear rocket propulsion and nuclear power sources 459 SPECIAL ANALYSES for space applications, including production of isotopic fuels, and amounts for aerospace safety. The Weather Bureau amounts are primarily those related to the establishment of an operational meteorological satellite system, which therefore, are not included in the totals for research and development in this special analysis. The amounts for the National Science Foundation are for research in astronomy using rockets and satellite-borne observation instruments. WATER RESEARCH The Federal program for water resources research will total an estimated $102 million in 1966. Table H-14. OBLIGATIONS OF FEDERAL AGENCIES FOR WATER RESEARCH AND SURVEYS (in millions of dollars) Agency Departments of: Agriculture Commerce Defense _ _ _ Health, Education, and Welfare Interior Atomic Energy Commission National Science Foundation Tennessee Valley Authority 1964 actual _ __ . Total 1965 estimate 1966 estimate 11.0 1.2 3.4 13.2 30.1 3.1 1.7 .9 13.0 1.2 3.5 13.1 39.3 2.3 1.8 1.1 14.5 1.5 4.0 17.7 58.0 2.5 2.1 1.2 64.7 75.3 101.5 The Committee on Water Resources Research of the Federal Council for Science and Technology reviews and facilitates coordination of the activities of the eight major Federal agencies whose missions require the conduct of research relating to water. The Committee's first year of operation was devoted primarily to problems of improving coordination and identifying program areas requiring immediate attention. In 1965, the Committee will turn its attention to the development of a balanced long-range plan for water resources research. In a closely related area, the Department of the Interior is responsible for coordinating the activities of the Federal agencies in the collection of water data. The program in 1966 is $26.2 million larger than 1965 with a major expansion of the effort to advance desalting technology, aimed at providing economic conversion processes applicable to a wide range of water supply problems. Other increases will provide additional funds for studies in water yield improvement; erosion, sediment and pollution control; and for research facilities. SCIENCE INFORMATION The Committee on Scientific and Technical Information of the Federal Council for Science and Technology is stimulating the various agencies to strengthen their programs for handling scientific and technical information. The Committee has identified a number of problem areas in scientific and technical information handling and has ap- 460 THE BUDGET FOR FISCAL YEAR 1966 pointed task forces to work on these problems with the objective of obtaining more effective management of existing programs and improving agency coordination. Problems under study include language compatibility in mechanized storage and retrieval, development of a single Government depository library system, technical vocabulary compatibility, development of descriptive cataloging standards, and research and development in information science. In 1966 the largest expenditures will continue to be for publication and distribution of documents and bibliographic and reference activities with small increases provided over the previous year to reflect the continuing growth of published scientific and technical materials and the expansion of agency informational services. Of vital significance to the improvement of scientific and technical information systems is the investment in research and development. The present level of expenditure in research and development in information sciences, documentation, information systems, techniques and devices is approximately $50 million. A modest increase in such research and development is planned for 1966 to advance this effort and to initiate new projects. The budget for 1966 also reflects recent Federal policy decisions, including the creation of the Federal Clearinghouse for Scientific and Technical Information within the Department of Commerce and strengthening of the National Standard Reference Data System at the National Bureau of Standards which was created a year ago. Funds have also been included for a drug and chemical information system in the Department of Health, Education, and Welfare. SUMMARY DATA Table H-15 below gives historical data on total research and development expenditures by major agency. Table H-16 following provides information on expenditures for the conduct of research and development and for research and development facilities by agency and major subdivisions for the fiscal years 1964, 1965, and 1966. Table H-15. BUDGET EXPENDITURES FOR RESEARCH AND DEVELOPMENT, 1954-66 (in millions of dollars) Department pf NASA 2 Defense * Fiscal year 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1 3 .. ___. . .... 2,487 2,630 2,639 3,371 3,664 4,183 5,654 6,618 6,812 6,849 7,516 7,222 6,880 AEC D/HEW Other 90 74 71 76 383 385 474 657 63 70 86 144 4 9 15 31 121 140 161 183 89 145 804 877 180 253 33 51 220 293 401 744 1,251 2,540 4,171 4,900 5,100 986 1,111 1,284 1,335 1,503 1,569 1.557 324 374 512 632 58 11 105 142 315 356 409 490 791 801 936 197 208 266 496 655 706 Includes civil functions. National Advisory Committee for Aeronautics prior to 1958. NSF Total 3,148 3,308 3,446 4,462 4,990 5,803 7,738 9,278 10,373 11,988 14,674 15,355 15,445 SPECIAL 461 ANALYSES Table H I 6. ADMINISTRATIVE B U D G E T EXPENDITURES FOR FEDERAL RESEARCH A N D DEVELOPMENT PROGRAMS (in millions of dollars) Conduct of research and development Description Total, Department of Agriculture. _ Department of CommerceNational Bureau of Standards _ _ _ Weather Bureau Maritime Administration Transportation research Other 1965 1966 mate mate 97.0 41.6 10.0 2.0 24.2 2.6 116.8 46.8 10.7 2.1 30.4 12.5 134.2 50.5 11.3 2.1 30.9 8.7 2.1 4.1 3.2 5.4 2.0 2.9 3.8 5.1 1.0 9.5 177.4 219.3 237.7 5.0 16.2 17.9 23.4 10.2 7.8 .9 4.9 27.7 11.6 10.5 2.0 6.3 30.4 13.9 5.5 12.5 5.8 24.1 30.6 23.0 47.2 58.1 68.1 24.1 30.6 23.0 7,428.9 7,108.1 6,780.4 4.5 3.4 3.9 84.0 109.6 95.0 7,432.3 7,112.0 6,784.9 84.0 109.6 95.0 1.1 .4 1.8 6.0 44.9 74.3 78.3 1964 Department of Agriculture: Agricultural Research Service. _ Cooperative State Research Service Economic Research Service. Agricultural Marketing Service Forest Service. _ Other ... Total, Department of Commerce Department of Defense: Military Civil Total, Department of Defense Department of Health, Education, and Welfare: Food and Drug Administration Office of Education. Office of Vocational Rehabilitation Public Health Service Welfare Administration Research and development facilities 1964 1965 1966 mate mate 5.9 12.7 15.5 706.8 4.3 7.0 18.9 20.3 675.0 9.0 9.4 31.3 21.8 782.6 11.2 745.2 730.2 856.3 46.0 74.7 86.1 21.9 22.6 2.6 30.1 8.3 3.4 21.8 24.5 5.1 33.6 11.3 9.1 22.4 25.4 5.7 37.3 13.2 11.0 .1 .3 .6 .4 .5 6.5 1.2 .8 8.0 1.2 .8 4.1 6.9 2.5 88.9 105.5 114.9 9.0 10.9 14.0 Atomic Energy Commission __ 1,236.0 1,269.6 1,292.2 Federal Aviation Agency 63.4 95.4 74.4 National Aeronautics and Space Administration 3,733.2 4,376.0 4,694.0 207.7 146.5 159.0 National Science Foundation 39.9 32.3 39.6 Veterans Administration _ _ __ 97.1 37.1 59.8 Other 266.8 6.4 299.6 9.7 264.3 6.7 437.8 50.4 3.5 1.5 524.0 48.5 3.7 3.2 406.0 58.2 6.0 934.5 1,130.7 977.4 Total, Department of Health, Education, and Welfare _ Department of the Interior: Geological Survey Bureau of Mines Office of Coal Research Fish and Wildlife Service Office of Saline Water. _ Other _ ... _ Total, Department of the Interior. _ Total, research and development 13,739.5 14,224.4 14,467.2 .2 SPECIAL ANALYSIS I FEDERAL AID TO STATE AND LOCAL GOVERNMENTS Federal aid to State and local governments in recent decades has become a major factor in the cooperative financing of essential government functions. The rudiments of the present system date back about 100 years to the enactment in 1862 of the Morrill Act, which established land-grant colleges and instituted certain federally required minimum standards characteristic of the present grant-in-aid system. Federal aid was later initiated for agriculture, highways, vocational education and rehabilitation, forestry, and public health. In the depression years, Federal aid was extended to meet economic security and other social welfare needs. In 1966 Federal financial assistance to State and local governments under existing and proposed programs will total an estimated $13.6 billion, including net expenditures of $9.3 billion from regular budget accounts and $4.3 billion from the highway and unemployment trust funds. This total includes $859 million in expenditures from the administrative budget under proposed legislation, largely for education, and health, labor, and welfare programs. Federal Aid to State and Local Governments Budget and Trust Fund Expenditures 462 SPECIAL ANALYSES 463 The growth of Federal aid programs.—In 10 years, total Federal aid to State and local governments will have more than tripled, rising from $3.8 billion in 1956 to an estimated $13.6 billion in 1966. In relation to total Federal cash payments Federal aid will have more than doubled. In the same period, expenditures by State and local governments from their own funds also will have more than doubled. Although the number and variety of Federal aid programs have increased markedly in the last several decades, about 54% of total expenditures in 1966 for assistance to State and local governments will be for highway construction and public assistance grants. In the decade ending in 1966, highway construction grants will have increased more than fivefold, rising from $729 million in 1956 to an estimated $3.9 billion in 1966, the largest increase in Federal aid for any purpose during this period. Grants for public assistance will have more than doubled since 1956, increasing from $1.5 billion to an estimated $3.5 billion in 1966. Increasing population and rapid urbanization have led to greater responsibility, particularly at the State and local level, for providing essential public services in education, health, housing, urban renewal, highways and public transportation. Continuing economic change has stimulated programs for safeguarding the economic security of individuals. While the major burden of such public services rests with the approximately 90,000 State and local governmental jurisdictions, the Federal Government plays a vital role, both through direct operation of programs and by providing financial assistance to State and local governments. The effective working of our Federal system is a matter of importance to all levels of government in the United States. In fiscal 1960 the Advisory Commission on Intergovernmental Relations was established as an agency for cooperative studies in intergovernmental problems. The organization, activities, and financing of the Commission should now be reappraised in the light of experience and emerging needs, and such a review is planned for fiscal year 1966. Major program changes for 1966.—In 1966, the total of budget and trust fund expenditures under existing and proposed programs for financial assistance to other levels of government will increase substantially. The total is estimated to be $2.2 billion more than for 1965 and $3.3 billion more than the actual total for 1964. The change is almost entirely in budget accounts. The major increases in grants for 1966 over the 1965 estimates are as follows: • Economic opportunity programs will increase by $654 million to an estimated $854 million in the second year of operation of the war on poverty. • Educational assistance programs, which are estimated to rise by $818 million to a total of $1.5 billion, reflecting largely proposed new legislation and legislation enacted by the 88th Congress for higher education, vocational education, defense education, and libraries. 464 THE BUDGET FOR FISCAL YEAR 1966 Table 1-1. FEDERAL AID BUDGET AND TRUST FUND EXPENDITURES BY AGENCY (in millions of dollars) Agency Executive Office of the President Funds appropriated to the President: Economic opportunity programs Other Department of Agriculture Department of Commerce Department of Defense—Military Department of Defense—Civil Department of Health, Education, and Welfare. Department of the Interior Department of Labor Department of State Treasury Department Federal Aviation Agency General Services Administration Housing and Home Finance Agency Veterans Administration Other independent offices District of Columbia J Total, budget and trust fund expenditures for Federal aid. 1964 actual 1965 estimate 1966 estimate 0.1 1.5 1.4 297.3 1,012.4 3,669.3 34.8 15.3 3,920.0 145.2 484.4 4.2 58.9 65.2 .9 534.8 7.6 8.4 54.6 200.0 325.6 999.7 4,123.5 37.3 18.1 4,067.7 161.2 573.0 5.1 61.6 57.2 2.1 723.2 7.7 9.4 73.0 853.5 213.5 1,058.6 3,906.5 35.5 23.0 5,514.7 205.4 694.3 5.5 62.7 10,313.6 11,447.1 13,618.2 60.1 .5 861.6 9.3 12.8 99.2 1 Represents Federal payments, contributions, and loans to the District of Columbia for operations and capital improvements. • Public assistance programs, which are estimated to rise by $504 million to a total of $3.5 billion, reflecting proposed new legislation and larger caseloads. • Labor and manpower programs, which will increase by $122 million to $695 million due to rising expenditures under the Manpower Development and Training Act (which is classified as a grant for the first time in this analysis), and to improvement in the employment service, especially for youth counseling, financed in part by a general fund advance to the trust fund. • Health services and research programs of the Department of Health, Education, and Welfare, which will increase by $115 million to a level of $603 million. • Housing and community development programs, which will rise by $153 million to a total of $840 million. Smaller increases will occur in natural resources programs, $43 million; in the food stamp program, $40 million; and in grants for vocational rehabilitation, $30 million. Significant decreases in expenditures in 1966 from 1965 are expected to occur in (1) accelerated public works, which will decline by $125 million, as most projects are now completed, and (2) Federal aid to highway construction, which is estimated to decrease by $231 million to a level of $3.9 billion. The decrease in 1966 highway trust fund expenditures results from an unusually high 1965 expenditure level, attributable to acceleration of construction in States where programs had been lagging. SPECIAL ANALYSES 465 New legislation proposed for 1966.—Federal aid to State and local governments will be affected by several of the recommendations for legislative change which are provided in the 1966 budget. Of the $859 million in grants-in-aid expenditures under proposed legislation, 58% wiU De f° r proposed legislation for elementary and secondary education. Grant expenditures from this legislation in 1966 are estimated to total $495 million. Expenditures in 1966 under proposed legislation for higher education are estimated at $5 million. Other recommendations for legislative change for which specific amounts are included in this analysis are: increase in public assistance payments ($114 million); grants through public assistance for health care of children from medically indigent families ^$100 million); expanded manpower development and training activities ($67 million); project grants through Children's Bureau programs for health diagnostic and treatment services for preschool- and school-age children ($25 million); expanded area redevelopment assistance ($20 million); grants for public facilities in urban areas ($15 million); grants for improved vocational rehabilitation services ($7 million); grants for initial staffing of mental health centers which is a part of the health legislation ($2 million). Federal aid programs by junction and agency.—In 1966, Federal aid for health, labor, and welfare activities will amount to $6.2 billion, 45% of the total. Of this amount $4.2 billion, including $3.6 billion for public assistance grants, will be for programs administered by the Department of Health, Education, and Welfare. About 30% of total Federal aid, or $4.1 billion, will be spent for commerce and transportation activities of which highway construction under the Department of Commerce will account for $3.9 billion. Most of the remaining 25% will be distributed among education (11%), housing and community development (6%), and agriculture and agricultural resources (4%). The detailed table at the end of this analysis lists the various programs of Federal aid to State and local governments by function, type of aid, agency, arid major program groups. In 1966, Federal aid budget and trust fund expenditures will be primarily for programs administered by the Department of Health, Education, and Welfare (40%) and 'the Department of Commerce (29%). Federal aid expenditures by other agencies will make up the remaining 31% of the total, with the largest amounts by the Department of Agriculture (8%); the Housing and Home Finance Agency (6%); funds appropriated to the Office of Economic Opportunity for economic opportunity programs (6%); and the Department of Labor (5%). 750-000 0—65 30 466 THE BUDGET FOR FISCAL YEAR 1966 Table 1-2. FEDERAL AID EXPENDITURES IN RELATION TO TOTAL FEDERAL EXPENDITURES AND TO STATE-LOCAL REVENUE Net budget expenditures for aid to State and Amount (millions) 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 estimate 1966 estimate $3,124 3,753 3,159 3,576 4,012 4,259 4,326 4,966 5,491 6,288 6,966 9,278 As a percent of total Federal administrative budget expenditures 5 6 5 5 5 6 5 6 6 6 7 9 Total expenditures for aid to State and local governments, budget and Amount (millions) As a percent of total cash payments to the public $3,124 3,753 4,111 5,072 6,813 7,174 7,283 8,167 8,818 10,314 11,447 13,618 4 5 5 6 7 8 7 8 8 9 9 11 As a percent of Statelocal revenue * ( 22) () 11 12 11 12 15 14 13 14 14 15 1 Based on compilations published by Governments Division, Bureau of the Census. Excludes State-local revenue from publicly operated utilities, liquor stores, and insurance trust systems. 2 Not available. Federal aid in relation to total Federal and State-local outlays.— Estimated Federal aid in 1966 to State and local governments from budget accounts alone of $9.3 billion will represent approximately 9% of total Federal budget expenditures, an increase of roughly 2 points over 1965. Total financial aid from budget and trust accounts of $13.6 billion will represent about 11% of estimated total Federal cash payments to the public, also an increase of about 2 points over 1965. As a source of State and local revenue, Federal aid payments from both trust fund and budget accounts in 1964 were about 15% of all general revenue available to these jurisdictions. Types oj Federal aid.—Federal financial assistance to State and local governments takes the form of direct grants-in-aid, shared revenue, and net loans and repayable advances. Grants to States and localities are the most significant type of Federal aid. In 1966, it is estimated that $13.1 billion or 96% of total expenditures for all three types of aid will take the form of grants-in-aid. Shared revenue will account for $191 million, or 1.4%, and net loans and repayable advances, $312 million, or 2.3% of the grand total. Apart from these types of Federal aid, many other Federal expenditures which are not included in this analysis, such as contractual payments or grants to public institutions for research and training in special fields, affect the finances of State and local governments. 467 SPECIAL ANALYSES Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS (in millions of dollars) Agency and program Fuu_ tional code 1964 actual 1965 estimate 1966 estimate BUDGET ACCOUNTSi Grants-in-aid National defense: Executive Office of the President: Office of Emergency Planning: Federal contributions and State and local planning Department of Defense—Military: Civil defense shelters and financial assistance Construction of Army National Guard centers 059 0.1 1.5 051 051 20.5 14.2 26.3 11.0 27.5 8.0 34.9 38.8 36.9 Total, national defense. 1.4 International affairs and finance: Department of State: East-West Cultural and Technical Interchange Center. _ 153 4.2 5.1 5.5 351 352 481.3 402.4 400.4 2.5 354 355 355 56.7 76.6 39.9 58.6 82.4 48.5 61.9 83.4 50.9 355 1.5 1.5 1.5 656.0 593.4 600.7 402 15.8 15.7 15.6 401 7.7 12.1 20.9 .2 .8 3.9 1.7 20.6 6.0 .1 .8 5.3 1.7 21.6 33.0 44.9 60.9 98.9 507 257.2 269.6 145.0 502 503 503 .6 36.6 .4 .4 41.3 .2 .4 40.4 Agriculture and agricultural resources: Department of Agriculture: Commodity Credit Corporation and Agricultural Marketing Service: Removal of surplus agricultural commodities and value of commodities donated Rural housing for domestic farm labor Watershed protection, flood prevention, and resource conservation and development Cooperative agricultural extension work Agricultural experiment stations Payments to States, territories, and possessions, Agricultural Marketing Service Total, agriculture and agricultural resources. Natural resources: Department of Agriculture: Forest protection and utilization Department of Defense—Civil: Corps of Engineers: Payment to California, flood control Department of the Interior: Bureau of Reclamation: Disposal of Boulder City and Coulee Dam communities Bureau of Indian Affairs: Resources management Water resources research Drainage of anthracite mines Federal aid for fish and wildlife restoration Recreation planning and land acquisition 401 401 401 403 404 405 Total, natural resources. Commerce and transportation: Funds appropriated to the President: Public works acceleration Department of Commerce: State marine schools Forest and public lands highways Control of outdoor advertising Provision of new, accurate standards of weights and measures Civilian industrial technology See footnotes at end of table. 506 506 .8 .1 20.5 .5 .2 .2 468 THE BUDGET FOR FISCAL YEAR 1966 Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS (in millions of dollars) —Continued Agency and program unc:ional code 1964 actual 1965 1966 BUDGET ACCOUNTS 1—Continued Grants-in-aid—Continued Commerce and transportation—Continued Department of Commerce—Continued Area redevelopment assistance: Existing program Proposed legislation Federal Aviation Agency: Federal-aid airport program.. Small Business Administration: Research and management counseling 506 .1 .3 371.5 380.9 551 10.5 20.0 60.1 276.7 5.5 551 552 553 553 553 553 553 553 .8 181.9 15.2 211.9 555 555 37.5 4.9 1.5 209.1 20.0 278.5 13.7 13.7 1.6 39.7 2.4 221.4 15.0 329.5 40.3 17.5 5.9 15.0 50.0 7.0 1.6 555 452.1 577.8 711.1 655 659 20.7 200.0 55.5 853.5 56.5 659 659 276.1 29.4 291.8 57.7 299.9 97.3 651 651 187.1 (125.4; 205.5 (137.7) 218.0 (146.1) 651 651 651 651 59.9 84.7 66.4 7.1 74.0 12.0 96.7 2.2 80.0 651 651 11.1 11.5 3.0 11.5 15.0 651 651 651 651 651 84.0 96.2 .1 1.2 .2 138.8 25.0 .1 1.2 Total, housing and community development Health, labor, and welfare: Funds appropriated to the President: Economic opportunity programs Disaster relief Department of Agriculture: School lunch and special milk Food stamp Department of Health, Education, and Welfare: Hospital construction activities Portion to private, nonprofit institutions Community health activities: Existing program Proposed legislation Construction of waste treatment facilities Environmental health grants National Institutes of Health: Operating grants Mental health facilities Maternal and child welfare: Existing program Proposed legislation Mental health facilities, Alaska Hospital and medical care, Hawaii. Indian health facilities See footnotes at end of table. 11.5 65^2 Total, commerce and transportation. Housing and community development: Funds appropriated to the President: Alaska mortgage indemnity grants Housing and Home Finance Agency: Low-income housing demonstration program Low-rent public housing program Urban planning grants Urban renewal Urban transportation assistance Open space program Federal-State training programs Proposed legislation for public facility grants District of Columbia: Federal payment and contribution Proposed legislation: Increased payments National Capital Transportation Agency: Land acquisition and construction (proposed legislation) 11.4 507 507 501 14.4 1.2 469 SPECIAL ANALYSES Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS (In millions of dollars)—Continued Agency and program Functional d 1964 1965 1966 653 2,944.1 2,952.0 3,242.1 BUDGET ACCOUNTS i-Continued Grants-in-aid—Continued Health, labor, and welfare—Continued Department of Health, Education, and Welfare—Con. Public assistance Proposed public assistance legislation: Improvement of medical care for needy children Other improvement and expansion Vocational rehabilitation: Existing program Proposed legislation Department of Labor: Manpower Development and Training activities: Existing program Proposed legislation Equal Opportunity Commission 653 100.0 114.0 653 659 659 87.6 100.8 123.3 7.0 652 652 2 79.7 159.5 125.0 67.0 .9 652 Total, health, labor, and welfare- 3,854.5 4,305.4 5,689.4 Education: Department of Health, Education, and Welfare: Assistance to schools in federally affected areas Proposed legislation for elementary and secondary education Defense educational activities: Assistance for elementary and secondary education. Other aid to education Higher education construction.__'_ Assistance to land-grant colleges Proposed legislation for higher education Vocational education Grants for library services Teaching of the blind Training teachers of the handicapped Educational television facilities Civil rights educational activities Department of the Interior: Bureau of Indian Affairs: Education and welfare services 701 Total, general government. Total, grants-in-aid See footnotes at end of table. 357.6 495.0 701 704 702 702 702 704 704 704 704 704 704 69.2 15.0 41.1 7.4 .7 .5 71.1 18.1 .8 3.2 4.1 .6 101.7 2.0 109.2 14.5 5.0 181.5 37.0 .8 3.6 5.8 3.3 704 8.3 9.1 10.0 479.4 535.7 1,327.2 7.6 7.7 8.8 .5 7.6 7.7 9.3 804 804 Total, veterans benefits and services General government: Funds appropriated to the President: Transitional grants to Alaska Department of the Interior: Grants to territories and Alaska public works General Services Administration: Hospital facilities in the District of Columbia 317.8 701 Total, education _ Veterans benefits and services: Veterans Administration: Aid to State homes Grants for construction of State nursing homes. 322.6 14.5 79.7 15.6 1.0 14.5 910 19.4 .6 6.5 910 32.1 17.6 27.7 905 .9 2.1 .5 52.5 20.2 34.8 5,957.6 6,525.9 8,790.5 470 T H E BUDGET FOR FISCAL YEAR 1 9 6 6 Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS (In millions of dollars)—Continued r Agency and program unc- 1964 1965 1966 code BUDGET ACCOUNTS i-Continued Shared revenue Natural resources: Department of Agriculture: National forest and grassland funds, payments to States and counties Department of Defense—Civil: Corps of Engineers: Flood Control Act of 1954 payments Department of the Interior: Payments to States and counties from grazing receipts, sales of public lands and proceeds, and national grasslands Boulder Canyon project, payments to Arizona and Nevada _ ____ Oregon and California land-grant fund payments Payments to Coos and Douglas Counties, Oreg Mineral Leasing Act payments Payments to counties, Migratory Bird Conservation Act, national grasslands, and payments to Alaska, Alaska game law, and Pribilof Islands fund. Tennessee Valley Authority: Payments in lieu of taxes__ Miscellaneous snared revenue Total, natural resources. _ _ 402 30.7 33.5 34.2 401 1.7 1.7 1.8 401 .9 1.0 1.1 401 402 402 403 .6 15.0 .2 46.5 .6 21.1 .8 52.0 .6 18.2 .9 53.2 404 401 400 1.2 8.2 .1 1.3 9.0 .2 .9 10.2 .2 105.2 121.4 121.3 7.0 45.0 8.3 47.0 7.2 47.0 52.0 55.3 54.2 157.2 176.7 175.5 1.5 2.5 5.3 6.0 8.0 5.3 7.5 10.5 ___ General government: Department of the Interior: Internal revenue collections, 910 Virgin Islands Treasury Department: Tax collections for Puerto Rico_. 910 Total, general government Total, shared revenue _ __ Loans and repayable advances (net) Agriculture and agricultural resources: Department of Agriculture: Rural renewal Watershed protection, flood prevention, and resource conservation and development 352 354 Total, agriculture and agricultural resources Natural resources: Department of the Interior: Irrigation projects 401 11.8 12.6 17.7 Commerce and transportation: Department of Commerce: Area redevelopment 507 12.8 17.0 12.5 551 552 555 17.1 -.1 -2.6 41.5 3.3 32.0 2.3 33.3 -.7 1.6 43.5 553 -1.0 -45.3 44.0 7.1 23.9 45.8 109.7 129.4 Housing and community development: Housing and Home Finance Agency: Liquidating programs: Community facilities loans. __ Low rent public housing program Public facilities Public works planning _ _ __ Urban renewal fund Urban transit fund District of Columbia: Capital outlays and operations... Total, housing and community development See footnotes at end of table. 7.9 27.5 7.4 42.2 471 SPECIAL ANALYSES Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS (In millions of dollars)—Continued Func- 1964 1965 1966 code BUDGET ACCOUNTS 1— Continued Loans and repayable advances (net)—Continued Education: Department of Health, Education, and Welfare: Higher education construction_^_ _ 707 Housing and Home Finance Agency: College housing. __ 702 Total, education General government: Department of Defense—Civil: Corps of Engineers: Construction of power systems, Ryukyu Islands Department of the Interior: Alaska public works 910 910 Total, general government Total, loans and repayable advances Total, net budget expenditures 91.5 0.2 108.8 5.3 130.6 91.5 109.1 135.9 5.9 4.3 3.5 0.3 5.5 5.9 7.8 5.8 173.1 263.7 311.9 6,288.0 6,966.3 9,277.9 TRUST FUNDS Grants-in-aid Commerce and transportation: Department of Commerce: Highway trust fund: Federal-aid highway program. _ 503 3,607.1 4,052.7 3,822.4 Health, labor, and welfare: Department of Labor: Unemployment trust fund: Administration of employment security programs 652 404.6 413.5 502.3 4,011.8 4,466.2 4,324.7 14.0 14.6 15.7 14.0 14.6 15.7 4,025.8 4,480.8 4,340.3 Total, grants-in-aid _ _ _ Shared revenue General government: Treasury Department: Bureau of Customs: Refunds, transfers, and expenses of operation, Puerto Rico and the Virgin Islands Total, shared revenue Total trust fund Total, budget and trust fund expenditures for Federal aid ^ 904 10,313.6 11,447.1 13.618.2 Note.— Detail will not necessarily add to totals because of rounding. *Less than $0.05 million. 1 Many expenditures listed under budget accounts and trust funds are part of larger appropriation accounts or trust accounts. 2 Not included in pt. A. "Federal-aid payments to States and local units," in the 1964 Annual Report of the Secretary of the Treasury, table 85, due to reclassincation of this program after the Treasury table was completed. 3 The amount in 1964 for grants-in-aid and shared revenue from budget and trust accounts in this analysis is identical with the $10,060.8 million distributed by States in the 1964 Annual Report of the Secretary of the Treasury, table 85, part A, "Federal Aid Payments to State and Local Units," except for inclusion in this analysis of $79.7 million for manpower development and training activities in the Department of Labor. SPECIAL ANALYSIS J PRINCIPAL FEDERAL STATISTICAL PROGRAMS Objectives of the Federal statistical programs are to provide accurate, comprehensive, and timely data that are required for operations and policy decisions of the Government, and that furnish the public with information about the functioning of the economy and the welfare of people. This program is under constant review to assure that it reflects only the more pressing needs for data and that it is accomplished with a minimum burden on respondents. This analysis summarizes the 1966 budget recommendations for the principal statistical programs of the Federal Government. These programs are classified as current or periodic. Current programs typically provide data on a single-time, monthly, quarterly, or annual basis while the periodic programs furnish benchmark data derived from large-scale census-type surveys characteristically taken only once or twice a decade. Recommendations for the current program in 1966 total $106.5 million, an increase of $10.9 million over 1965. The periodic program for 1966 is at a level of $19.8 million, a reduction of $5.7 million from 1965; this program fluctuates widely from year to year depending on the timing of the periodic censuses during the decade. Formulation of the Government's statistical program begins with the identification of problem areas and consideration of the data needed for measurement and for policy guidance. Many of the statistical series, such as the national economic accounts and the consumer price index, are now standard continuing requirements. Others become outmoded and are updated or discarded. New statistical data have to be developed in response to problems as they arise and to new programs of the Government. For example, the current emphasis on balance of payments led to establishment of a Review Committee for Balance of Payment Statistics; the 1966 budget provides for funds to effectuate some of the recommendations of this committee. Similarly, the budget for 1966 extends the statistical program proposed by the President's Committee to Appraise Employment and Unemployment Statistics. A new program, required by the Civil Rights Act of 1964, involves the compilation of registration and voting statistics. The principal current statistical programs are classified by six major subject areas for the purpose of this analysis. This is done for two reasons: first, as an aid in evaluating the Government's overall statistical program in terms of relative emphasis by subject; and second, to indicate the interrelationships of the statistical activities of the various agencies. The subject areas, the agencies and the amounts involved are summarized in table J - l . Current statistical programs included in this analysis represent in some cases the entire programs of those agencies, or parts of agencies, whose operations are principally statistical. In other cases, only that portion of the agency's activities allocated to the production of 472 473 SPECIAL ANALYSES general purpose statistics is included. While this analysis contains the principal programs it does not cover all statistical activities. A more detailed description of the recommendations for 1966 is available on request from Bureau of the Budget. Table J-2 shows by agencies the amounts involved in both the current and periodic statistical programs included in this analysis. Table J-1. OBLIGATIONS FOR PRINCIPAL CURRENT STATISTICAL PROGRAMS, BY BROAD SUBJECT AREAS (in millions of dollars) Program 1964 Labor statistics (Departments of Agriculture, Interior, and Labor; National Science Foundation) Demographic and social statistics (Departments of Agriculture, Commerce, and Health, Education, and Welfare; National Science Foundation) Prices and price indexes (Departments of Agriculture, Commerce, and Labor) Production and distribution statistics (Departments of Agriculture, Commerce, Defense, and Interior; Civil Aeronautics Board; Interstate Commerce Commission) Construction and housing statistics (Department of Commerce; Federal Home Loan Bank Board; Housing and Home Finance Agency) National income and business financial accounts (Departments of Agriculture, Commerce, and Treasury; Securities and Exchange Commission; Federal Trade Commission) Total, principal current programs 1965 1966 21.4 23.9 29.1 15.9 18.2 20.9 5.0 5.6 5.9 31.5 36.0 36.7 3.1 3.2 4.6 8.2 8.7 9.3 85.1 95.6 106.5 CURRENT PROGRAMS Labor statistics.—Funds are recommended for the Department of Labor primarily to expand research on labor force problems and concepts; to improve area unemployment estimates; to develop employment, hours, and earnings data for additional areas; and, depending upon the outcome of developmental work in 1965, to produce job vacancy statistics for selected areas. In the field of wages and industrial relations it is proposed to expand the survey of professional, administrative, technical, and clerical salaries to include smaller establishments, more localities, and a larger number of occupations and to begin work in the field of State and local government salaries. It is also proposed to expand the studies of employer expenditures for fringe benefits. Demographic and social statistics.—Almost two-thirds of the recommended increase is for improvement of statistics on health and education. Funds requested for the National Center for Health Statistics would permit full year operation of the health records survey, initiated in 1965, which is designed to study results obtained with varying treatment and hospital utilization and costs; in addition the Center plans to initiate in 1966 a program of basic statistics relating to smoking and health, as important tools in the continuing appraisal of this relationship and in identifying areas for the concentration of intensive medical research. Provision is made for the Office of Education to 474 THE BUDGET FOR FISCAL YEAR 19 66 initiate a major overhauling of its educational statistics program through the development of a model designed to describe the flows through the education system and to test its effectiveness. In the general welfare field, the budget request includes increased funds for the Social Security Administration to undertake studies of specialized groups—the retired and the disabled. Additional funds requested for the Census Bureau are for the purpose of extending the program of State and local population estimates and current information on population trends; this is part of a planned program to provide current local data between censuses. Prices and price indexes.—Additional funds are requested for the Department of Labor to expand its program of price indexes for manufacturing industries and to develop techniques for making international price comparisons of metals and machinery products and for preparing indexes of prices of goods purchased by the Federal Government. Recommendations also include funds to begin work on updating standard budgets for city workers' families and elderly couples. Production and distribution statistics.—The largest part of the increase in this activity is for the Department of Agriculture to undertake studies of financial management of family farms, economic analyses of water management and use on farms, and compilation of agricultural export and import statistics. Reduction in expenditures for other activities will permit the extension of the long-range program of improved crop and livestock estimates to the remaining 9 of the 48 contiguous States. An increase for the Bureau of Mines is recommended for automating selected statistical surveys and for increased support of cooperative work with State agencies. Construction and housing statistics.—Recommendations in the 1966 budget would permit the Housing and Home Finance Agency to strengthen and expand its statistical and research programs, primarily in the field of basic housing market data. Funds for a major improvement of construction value in place data are recommended for the Census Bureau; these funds provide for the direct measurement of construction in the Western States. National income and business financial accounts.—The largest single item in this area is for the Department of Commerce to develop statistics required for the improved computation of balance of payments. Other recommendations for the Department of Commerce involve strengthening the basic estimates in the national accounts. A recommended increase for the Securities Exchange Commission is for the assembly of additional information on operations of the securities markets. Additional funds for the Internal Revenue Service cover increased use of statistics from tax returns. PERIODIC PROGRAMS Major items for 1966 are completion of tabulations of the 1964 Census of Agriculture and the compilation of registration and voting statistics under the provisions of title VIII, the Civil Rights Act of 1964. Funds are recommended for the Census Bureau to continue its preparation for the 1970 population and housing censuses; preparatory work on the 1967 Economic Censuses and the 1967 Census of Governments would also be undertaken by the Census Bureau. Purchase of a computer by the Department of Agriculture is proposed. 475 SPECIAL ANALYSES Table J-2. OBLIGATIONS FOR PRINCIPAL STATISTICAL PROGRAMS, BY AGENCY (in millions of dollars) Agency 1964 actual 1965 estimate 1966 CURRENT PROGRAMS Department of Agriculture: Economic Research Service Statistical Reporting Service Department of Commerce: Bureau of the Census Office of Business Economics Department of Defense: Corps of Engineers: Domestic shipping statistics Department of Health, Education, and Welfare: Office of Education: Educational statistics National Center for Health Statistics Social Security Administration: Statistical and research activities Welfare Administration: Statistical and research activities Department of the Interior: Bureau of Mines: Statistical activities. Department of Labor: Bureau of Employment Security: Statistical activities Bureau of Labor Statistics Office of Manpower, Automation and Training: Statistical activities Treasury Department: Internal Revenue Service: Statistical reporting Civil Aeronautics Board: Statistical and research activities Federal Home Loan Bank Board: Statistical activities Federal Trade Commission: Financial statistics Housing and Home Finance Agency: Urban studies and housing research Interstate Commerce Commission: Transport economics and statistics National Science Foundation: Statistics and research Securities and Exchange Commission: Operational and business statistics Total, current programs. 9.2 10.5 10.9 11.9 11.4 11.9 13.6 •2.1 15.2 2.4 15.6 2.8 1.1 1.0 1.5 5.8 1.9 6.3 2.6 7.3 4.3 1.2 4.8 1.7 5.3 1.7 2.4 2.4 2.7 1.7 16.3 2.5 18.5 5.6 20.6 4.2 3.8 3.8 4.6 .4 .9 .3 4.8 .5 .8 .4 5.0 .5 .9 .4 .4 1.5 1.4 3.0 1.5 3.6 1.5 4.0 .3 .4 .4 85.1 95.6 106.5 .6 4.5 7.) 1.5 7A 16.2 1.5 5.6 1.2 .2 2.4 6.5 PERIODIC PROGRAMS Department of Commerce: Bureau of the Census: 1962 Census of Governments Moderniziation of computing equipment 1963 economic censuses 1964 Census of Agriculture 1967 economic censuses 1967 Census of Governments Preparatory work for 19th Decennial Census Compilation of registration and voting statistics Department of Agriculture: Statistical Reporting Service: Computer Department of Labor: Bureau of Labor Statistics: Revision of Consumer Price Index Total, periodic programs Total, principal statistical programs _ .5 1.3 .8 2.5 1.4 15.6 25.5 19.8 100.7 121.1 126.3 SPECIAL ANALYSIS K FOREIGN CURRENCY AVAILABILITIES AND USES Many agencies of the Government are engaged in activities throughout the world which involve payments in foreign currencies. From some governmental activities, particularly the sale on concessional terms of surplus agricultural commodities, foreign currencies accrue to the Government without purchase with dollars. This analysis presents summary data on foreign currency availabilities and uses. Most currencies accrue to the credit of the United States because of past or current international agreements authorized under several laws. In most cases, these international agreements deal (1) with sales arrangements, wherein commodities (usually surplus agricultural commodities) are sold to foreign purchasers for local currencies, or (2) with loans, wherein dollars or foreign currencies themselves are lent to foreign borrowers and may be repaid in the currency of the borrower. Currencies also become available in much smaller amounts under other kinds of international agreements and from the normal operations of the U.S. Government abroad. A large part of the foreign currencies 'owned by the United States is committed by the terms of the international agreements under which they are received to be used on a loan or grant basis for mutually beneficial purposes in the country—these are called "country-use" currencies. The currencies which are available for the purposes of U.S. agencies are called "U.S. use" currencies. The Federal Government has established a number of procedures to insure the maximum use of the foreign currencies which are available for U.S. purposes. Efficient use of these currencies is important not only as a matter of sound financial management but because of the need to improve the balance of payments position of the United States. In many instances, payments in foreign currencies have been substituted for payments in U.S. dollars, thus decreasing the balance of payments deficit. It is useful both for administrative purposes and for analytical purposes to divide Federal holdings of U.S. use foreign currencies into two categories: Excess currencies are the currencies of countries for which the Treasury Department determines (after reviewing the availabilities and prospective uses) that the supply is great enough to more than cover our requirements for the next 2 or 3 years. For 1965, the excess currency countries are: Burma, India, Israel, Pakistan, Poland, United Arab Republic (Egypt), and Yugoslavia. Brazil is expected to be added to the list for 1966. In addition, Indonesia was designated as an excess currency country during 1964, but has been removed from the list for 1965 and 1966. Separate appropriations for "special foreign currency programs" have been provided for several years. These appropriations finance 476 477 SPECIAL ANALYSES programs which can make good use of excess currencies, and may include projects of lower priority than those financed through regular appropriations. In addition, because of the increasing balances of these currencies, and the advantages to the United States of accelerating their use for worthwhile national purposes, the budget proposes that the President be authorized to spend, for additional special activities of authorized programs, up to 5% of excess foreign currencies available for U.S. uses. This is an experimental proposal to promote increased uses of these currencies* in addition to the programs which are financed from special foreign currency program appropriations. Nonexcess currencies are those of all countries not designated as "excess." In many of these countries, our supply of currencies is far below our needs, and it is necessary to purchase currencies commercially to meet our requirements. In some of these countries, however, the supply of currencies available for U.S. programs is above our immediate needs, but not by a great enough amount for the country to be declared an excess currency country. Agencies have been instructed to make special efforts to use these "near-excess" currencies, rather than U.S.. dollars, wherever possible, but these currencies are not available for use under the special foreign currency program appropriations. The "near-excess" countries currently are: Brazil (expected to be declared excess for 1966), China (Taiwan), Colombia, Finland, Guinea, Greece, Indonesia, Tunisia, Uruguay, and Syria. No designation of anticipated "near-excess" countries for fiscal year 1966 has been made, and the list is likely to change. Total availabilities of foreign currencies owned by the United States (excluding small amounts held in trust) in 1964, and estimated for 1965 and 1966, are as follows: Table K-1. CASH AVAILABILITY OF FOREIGN CURRENCIES (in millions of dollar equivalents) 1964 actual For U.S. uses: Excess currencies Nonexcess currencies: Restricted Unrestricted Subtotal, for U.S. uses For country uses Total . . _ _ . _ __ _ . 1965 estimate 1966 estimate 1,251 1,402 1,638 108 295 51 322 303 1,655 2,646 1,775 2,561 1,962 2,490 4,301 4,337 4,473 41 Need for foreign currencies.—As indicated in table K-2, the need for foreign currencies in U.S. operations often does not correspond to their availability on a country-by-country basis. Although we will have almost $2 billion available for U.S. programs, only $300 million will be in the currencies we need, and we must purchase almost $1.9 billion of currencies to meet our total requirements. (These figures are based on projections of future collections and requirements; 478 THE BUDGET FOR FISCAL YEAR 1966 foreign currency transactions are subject to more fluctuation and are, in many cases, less predictable than U.S. dollar transactions.) A strong effort is made at the time that commodity sales agreements are negotiated to obtain the maximum amount for U.S. uses to which the other government will agree, in those countries in which we have an insufficient supply of currencies. Despite this, in the normal course of its worldwide operations the Government must purchase large amounts of the currencies of many countries while at the same time it is accumulating large inconvertible balances of others. Table K-2. FOREIGN CURRENCY AVAILABLE TO MEET U . S . REQUIREMENTS, 1966 (in millions of dollar equivalents) Requirements (expenditures) Supply Country Excess currencies: Brazil Burma__ India Israel Pakistan _ _. Poland United Arab Republic (Egypt) Yugoslavia Total, excess currencies. Nonexcess currencies: Canada China (Taiwan) 1 Colombia 1 _ Finland l France _ _ Germany, Federal Republic of 1 Greece _____ Guinea 1 1 Indonesia _ _ _ _ _ Italy . _ _ Japan j r _____ Korea... Philippines Spain oyna * Tunisia * Turkey l United Kingdom Uruguay1 Other countries Total, nonexcess currencies Total _ _ Amounts available for use after 1966 Requirements for commercial purchase in 1966 Other than special programs Special programs 24 13 662 6 1 5 3 2 36 62 165 5 7 8 11 494 131 87 1 4 6 19 9 5 474 118 76 1,638 35 92 1,512 3 37 9 2 8 8 24 7 11 7 32 18 4 7 1 7 104 15 3 1 173 1,006 10 * * 1 * * * 22 6 1 1 * 7 10 50 218 47 33 67 2 1 1 * * 25 53 32 1 13 2 81 1 * * 89 224 2 41 179 345 2,069 7 160 1,892 1,982 2,104 99 1,673 1,892 15 10 623 49 147 101 165 998 15 1 * 6 20 5 1 44 211 29 29 61 2 73 *Less than one-half million dollars. 1 Currently designated as "near-excess" currency countries, but this designation may not be effective in fiscal year 1966. 479 SPECIAL ANALYSES U.S. uses of foreign currencies.—Table K-3 summarizes foreign currency transactions of U.S. use currencies as they are reflected in the budget. Disbursing officers are required to use currencies owned by the Government, if they are available, before purchasing currencies commercially. Table K-3. SUMMARY OF FOREIGN CURRENCY TRANSACTIONS, U.S. USES (in millions of dollar equivalents) 1964 Cash balances brought forward: Excess currencies Nonexcess currencies: Restricted Nonrestricted ____ ___ Subtotal, cash balances brought forward Collections: Public Law 480 sales Foreign assistance programs Other nonloan collections: Sale of military supplies and equipment __ Contributions for support of U.S. forces abroad Surplus property and lend-lease ___ Informational media guarantees Interest on public deposits Miscellaneous Loan repayments (principal and interest): Public Law 480 loans Foreign assistance loans (including Development Loan Fund) Subtotal, collections __ __ Transfer of excess currencies to country use Total availabilities Expenditures: Foreign currency expenditure authorizations: Proposed Presidential authorization Other With dollar credits t o Miscellaneous receipts of the general fund.._ Commodity Credit Corporation, Agriculture Informational media guarantee fund, USIA Foreign buildings program, Stated Military assistance program, Defense __ Other Subtotal, expenditures Adjustments due to changes in exchange rates. Cash balances carried forward __ 1,036 1,161 1,344 56 154 47 93 37 96 1,246 1,301 1,478 175 13 170 8 139 4 19 11 7 2 28 12 3 10 3 26 40 4 10 3 25 37 73 95 119 119 144 174 459 -51 501 -27 516 -11 1,655 1,775 1,982 12 10 49 6 96 205 3 1 17 64 178 3 5 2 35 80 134 3 1 333 -23 298 309 1,301 1,478 1,673 _ _ __ . __ _ - . _____ 1966 1965 ____ 35 480 THE BUDGET FOR FISCAL YEAR 1966 Recommendations for special foreign currency program appropriations, 1966.—Most U.S. uses of foreign currencies are covered by unrestricted dollar appropriations. Table K-4 shows the separate appropriations for special foreign currency programs, which are limited to the use of excess foreign currencies. These programs are in addition to the proposed new Presidential authorization. Table K-4. SPECIAL FOREIGN CURRENCY PROGRAM APPROPRIATIONSNEW OBLIGATIONAL AUTHORITY (in thousands of dollar equivalents) 1964 Library of Congress: Collection and distribution of library materials Funds appropriated to the President: Agency for International Development: American schools and hospitals abroad Department of Agriculture: Agricultural Research Service: Salaries and expenses Department of Commerce: International activities: Salaries and expenses National Bureau of Standards: Research and technical services Weather Bureau: Research and development Department of Health, Education, and Welfare: Office of Education: Educational research Office of Vocational Rehabilitation: Research and training Public Health Service: Scientific activities overseas Welfare Administration: Research and training Department of Interior: Bureau of Commercial Fisheries: Management and investigations of resources Department of State: Acquisition, operation, and maintenance of buildings abroad Smithsonian Institution: Archeological research and excavation United States Information Agency: Salaries and expenses Special international exhibitions Total. 1965 1966 1,417 2,102 2,000 4,000 4,700 1,250 200 500 250 500 500 500 500 500 500 1,000 2,000 4,000 2,000 1,000 2,000 6,000 1,200 300 300 300 2,750 5,000 6,500 1.300 11,750 450 8,200 400 11,112 154 29,348 21,817 36,868 Foreign currency expenditure authorizations.—In addition to the proposed new authorization to the President, unexpended balances of prior foreign currency expenditure authorizations remain for (1) Defense family housing, and (2) authorizations to the Agency for International Development to permit the use of Indian rupees in Nepal. These uses are summarized in table K-5. 481 SPECIAL ANALYSES Table K-5. SUMMARY OF FOREIGN CURRENCY AUTHORIZATIONS FOR U.S. USES (in thousands of dollar equivalents) 1964 actual New authorizations to spend foreign currency receipts: Funds appropriated to the President: Proposed new Presidential authorization Economic assistance Department of State. _ _ Total authorizations. _ _ _ _ _ ___ 1965 estimate 1966 estimate • 8,803 82,000 23 8,826 __ Expenditures: Funds appropriated to the President: Proposed new Presidential authorization Economic assistance Department of Defense Department of State - __ 82,000 10,787 767 6,200 3,577 49,200 3,300 3,000 9,777 55,500 m Total expenditures 11,734 Country uses.—A far larger amount of foreign currencies are used* outside of the appropriations process for loans and grants in the host country. These purposes include the common defense, economic development, and loans to American and certain foreign private enterprise. These uses are summarized in table K-6. Table K-6. SUMMARY OF FOREIGN CURRENCY T R A N S A C T I O N S COUNTRY USES (in millions of dollar equivalents) 1964 actual 1965 estimate 1966 estimate 1,652 1,488 1,553 944 1 1,039 7 926 944 51 1,046 27 926 11 2,646 2,561 2,490 997 35 43 941 41 26 906 47 20 Subtotal, expenditures Adjustments due to changes in exchange rates- _ _ _ . 1,075 -83 1,008 973 Cash balances carried forward 1,488 1,553 1,517 Cash balances brought forward. __. _. Collections: Public Law 480 sales Foreign assistance program Subtotal, collections Transfer of excess currencies from U.S. uses Total availabilities. __ _ _ _ Expenditures: Public Law 480 country loans and grants Public Law 480 loans to private enterprise Other foreign assistance programs.. _ _. _ _ 750-000 O—65 . 31 __ ___ __ SPECIAL ANALYSIS L INTERNATIONAL TRANSACTIONS OF THE FEDERAL GOVERNMENT As part of a wide range of efforts to reduce the continuing deficits in the U.S. balance of international payments, the Federal Government carries on a special program to minimize the adverse effects of its activities on the balance of payments. Under this program, agencies with substantial receipts or payments abroad keep their international transactions under close scrutiny. They are required to prepare statistical estimates of their transactions twice each year for review by the Bureau of the Budget. These estimates are evaluated to determine whether all possible actions are being taken to reduce payments and increase receipts. Since emphasis is placed on using this system as a management tool, forward estimates do not merely project current trends or programs, but rather reflect all possible efforts, consistent with the national interest, to minimize payments and to maximize receipts from other countries. This special analysis presents a summary of the international transactions of the Federal Government for fiscal years 1964-66 based on estimates made in September 1964 revised, where necessary, for comparability with the 1966 budget. Major trends.—Current estimates for Federal payments and receipts overseas produce an estimated decline in net Federal payments abroad of about $0.5 billion between 1964 and 1966, excluding special transactions. Receipts from abroad from regular transactions are expected to increase steadily from the 1964 level of $2.1 billion to $2.6 billion in 1966. (These receipts figures exclude special transactions—prepayments of loans, certain sales of securities, and advances for military sales.) Estimated Federal payments abroad are expected to decrease slightly from the 1964 level of $4.5 billion during 1965 and 1966, despite the effect of rising prices and wages on the costs of Federal programs overseas. This represents a significant decline from the 1963 level of $5 billion. Table L-l. SUMMARY OF INTERNATIONAL TRANSACTIONS OF THE FEDERAL GOVERNMENT (in millions of dollars) P a y m e n t s . _ ____ Receipts l ______ E x c e s s of p a y m e n t s . ____ 1 __ ____ ______ Not including special transactions (see table L-2). 482 1964 estimate 1965 estimate 4,500 2,138 4,422 2,204 4,464 2,625 2,362 2,218 1,839 1966 estimate 483 SPECIAL ANALYSES Trends by agency.—Table L-2 provides a breakdown of total current receipts and payments figures, identifying separately those agencies which account for the bulk of the Federal Government's international transactions. Table L-2. INTERNATIONAL TRANSACTIONS OF THE FEDERAL GOVERNMENT—BY MAJOR AGENCY (in millions of dollars) Description Payments: Department of Defense Agency for International Development Treasury Department Department of State Atomic Energy Commission Department of Health, Education, and Welfare Veterans Administration Department of Justice Other Total Receipts: Department of Defense Treasury Department Export-Import Bank Agency for International Development Department of Agriculture Other Total Receipts from special transactions (not included in receipts above): Advances on military exports (Department of Defense) Sales of medium-term, nonmarketable securities and participation certificates Nonscheduled receipts on loans Total 1964 2,760 513 538 234 133 133 70 2 117 1965 2,628 478 548 238 90 144 68 1966 stimate 2,546 484 633 247 53 155 68 6 222 62 216 4,500 4,422 4,464 868 304 544 194 125 103 995 291 394 227 182 116 1,130 289 636 266 206 99 2,138 2,204 2,625 406 175 125 163 352 0) 0) 0) 0) 921 1 Not available. Forward estimates are not made for receipts from nonscheduled loan payments and sales of medium-term, nonmarketable securities. Payments.—The largest reductions in payments over the 2-year period are estimated for the Department of Defense, the Agency for International Development, and the Atomic Energy Commission. The Department of Defense estimates reflect the Department's efforts to achieve savings—without reductions in our military capabilities—through a broad range of measures including: (1) a program to replace procurement overseas with procurement in the United States, (2) reductions in payments abroad for contractual services, (3) reduction in employment of foreign nationals at overseas installations, (4) reduction in military assistance offshore procurement, (5) reduction in personnel in overseas headquarters, and (6) reductions and consolidations in overseas bases and installations. The Department of Defense is also continuing its intensive worldwide effort to encourage other countries to purchase a portion of their 484 THE BUDGET FOR FISCAL YEAR 1966 military equipment in the United States to help offset our defense expenditures abroad. The reduction in payments estimated for the Agency for International Development results from the Agency's efforts to insure that, wherever possible, funds loaned or granted abroad are tied directly to procurement in the United States. Except for limited procurement in developing countries, it is now the Agency's general policy to prohibit the purchase abroad of any goods with foreign economic assistance funds. As a result of this policy, the percentage of commodities purchased overseas is expected to decline from 13% in 1964 to 8% in 1966. The major reason for the estimated decline in Atomic Energy Commission payments is the previously scheduled drop in deliveries of uranium concentrates from foreign countries. Veterans Administration payments abroad, mostly for compensation and pensions, are expected to remain level. The Department of Health, Education, and Welfare is expected to make increased payments overseas between 1964 and 1966 for social security benefits to recipients residing abroad. These obligations are not readily subject to administrative controls. The Treasury Department also makes substantial payments not easily subject to administrative controls; they include interest on the public debt and encashments of non-interest-bearing notes representing parts of past contributions to international lending organizations. (Contributions to these organizations often consist of non-interest-bearing notes which are not included as international transactions until they are cashed.) The significant increase in the 1966 payments by the Justice Department reflects the anticipated settlement of claims involving the sale of the General Aniline and Film Corp. No similar payments are anticipated for future years. Receipts.—The substantial estimated increase in receipts over the 1964-66 period is accounted for by transactions of the Department of Defense (mostly from the sales of military equipment to friendly governments), and loan repayments to the Export-Import Bank and the Agency for International Development. Special transactions—which are not included in the totals just discussed—were the source of large additional receipts in 1964. These receipts result from transactions involving advances or loans and are generally negotiated with foreign governments or official monetary authorities. Such transactions would not, therefore, occur as part of the regular operations of U.S. Government agencies. They include: {1) advance payments by foreign governments for military exports, (2) sales of nonmarketable, medium-term securities by the Treasury Department to foreign central banks, (3) sales of certain participation certificates by the Export-Import Bank, and (4) repayments by foreign borrowers of loans before they are due. Except for advances on military exports, they are not estimated for future years. Geographical distribution.—Table L-3 shows a distribution of receipts and payments by major geographic area. Receipts from Western Europe (excluding special transactions, most of which are with Western Europe) are estimated to increase 47% from 1964 to 1966. 485 SPECIAL ANALYSES Table L-3. DISTRIBUTION OF INTERNATIONAL TRANSACTIONS OF THE FEDERAL GOVERNMENT, BY GEOGRAPHIC AREA (in millions of dollars) 1964 Payments: Western Europe (including international organizations located there). __ Other countries. _ _ __ ______ _ _ Other international organizations and undistributed . _ Total . Receipts: Western Europe (including international organizations located there) _ Other countries Other international organizations and undistributed__ Total 1965 1966 2,023 2,192 286 1,993 2,116 313 1,982 2,034 447 4,500 4,422 4,464 1,037 1,020 942 1,254 1,522 1,098 81 8 6 2,138 2,204 2,625 Payments by type of transaction.—An analysis of payments by type of transaction indicates that between 1964 and 1966 the reductions in Federal payments abroad are expected to be primarily in payroll and purchases of goods and services. For the most part, the procurement reductions reflect the substitution of purchases in the United.States for those overseas. Table L-4. DISTRIBUTION OF FEDERAL PAYMENTS ABROAD BY TYPE OF TRANSACTION (in millions of dollars) Description 1. 2. 3. 4. 5. 6. 7. 1964 estimate U.S. payroll—Amount estimated to be spent abroad. Goods and services purchased abroad for use abroad 1 Other purchases of goods and services _ _ _ __ Grants (amounts for use abroad) 2 Pensions and similar transfer payments. _ Loans (amounts for use abroad) 2 _ __ Other Subtotal Less payments in excess foreign currencies _ _ _ _» __ __ 3 __ __ __ • Total, payments affecting the balance of payments 1965 estimate 1966 estimate 919 2,112 197 469 248 255 353 904 2,005 165 399 290 256 470 899 1,943 127 429 280 347 511 4,553 54 4,489 66 4,536 4,500 4,422 4,464 11 ding milit „ 2 Excludes funds tied to procurement in the United States or which are otherwise not currently available for use abroad. 3 Excess foreign currencies are those which the United States owns in quantities excess to its needs (see Special Analysis K). Since use of these currencies does not increase the flow of dollars abroad, they are deducted in calculating the effect of the Federal Government on the balance of payments. These figures are estimated on a slightly different basis in Special Analysis K, reflecting certain payments not covered in agency estimates of international transactions. Relation to the budget.—Reports on international transactions do not, in all cases, flow directly from the accounting system used for the administrative budget or trust funds. In some instances they are estimated separately to show all Government receipts or payments which enter the balance of payments. The major differences between 486 THE BUDGET FOR FISCAL YEAR 1966 data on international transactions and administrative budget and trust fund totals are: 1. Coverage.—Data on international transactions exclude all budget and trust transactions that are within the United States. For example, the administrative budget includes all expenditures for foreign assistance and Department of Defense procurement, while such payments are included as international transactions only to the extent that the procurement is estimated to take place abroad. On the other hand, budget and trust figures exclude debt transactions which are entered as international transactions. For example, sales of Treasury securities overseas are included as international transactions receipts, but are not considered budgetary receipts. 2. Estimated basis of international transactions.—No separate detailed accounting system has been established for international transactions comparable to that which supports administrative budget and trust fund totals. In many cases it is necessary to estimate the overseas components of transactions, since these components are not shown directly by accounting data. For example, budget accounts provide precise data on the gross amount of salaries paid in a given overseas area, but do not identify the amount actually spent overseas by employees—which is the relevant statistic for balance-of-payments purposes. Thus, for past years, international transactions are a combination of actual accounting reports and estimates. 3. Timing.—International transactions are recorded at the time when they are known or estimated to affect the balance of payments. The time at which a given international transaction is counted may, therefore, vary considerably from the time at which it is shown in the budget and trust fund accounts. For example, in some cases the U.S. Government makes contributions to international organizations in the form of non-interest-bearing notes. These notes are shown as administrative budget expenditures when issued, but as international payments only when they are cashed. Relationship to balance-of-payments statistics.—Data on Federal receipts and payments abroad are also reflected in the balanceof-payments statistics published by the Department of Commerce. However, as with the administrative budget, the balance-of-payments statistics are designed for purposes which are different from those for which the Government agency estimates and reports on international transactions have been established. Balance-of-payments data meet the needs of economic analysis and for the measurement of international flows of real resources and money, while agency reports on international transactions serve as both a means of estimating and a management tool for decreasing the balance-of-payments costs of Federal Government programs. Reflecting the different uses of these two bodies of data, there are the following differences between balance-of-payments statistics and the reports on Federal transactions covered in this analysis: 1. Classification.—The reports use classifications by agency and by types of expenditures which are quite different from the broad functional classifications used for the balance-of-payments statistics. 2. Attribution.—Transactions conducted by private businesses, in which the Federal Government is involved, are treated as private in the balance-of-payments statistics. In order to emphasize manage- SPECIAL ANALYSES 487 ment decisions, agency reports permit the attribution of some such transactions to the Federal Government. For example, military goods may be sold to foreign governments directly by private companies, although the sales are encouraged and sponsored by the Department of Defense. In the balance of payments, such sales would be reported as private receipts from exports. However, for the purpose of the Defense Department's estimates on international transactions, some of them are considered Government receipts. 3. Other.—Further differences between the two sets of data involve the timing of certain transactions, the reporting of foreign currencies, and minor differences in coverage of transactions which are considered "foreign." The balance-of-payments statistics do not include a separate identifiable category on total Federal receipts or payments. However, because of the recent interest in the relationship between U.S. Government grants and loans abroad and the balance of payments, the Department of Commerce has included estimates indicating the amount of Government loans and grants which involve direct payments to foreign accounts, as distinguished from those which involve no direct dollar outflow from the United States. Agencies report similar data for their estimates on international transactions. A reconciliation between the two sets of data, shown in table L-5, illustrates the kinds of differences which exist between the agency reports and estimates on international transactions and the Department of Commerce balance-of-payments statistics. Table L-5. GOVERNMENT GRANTS AND LOANS—RECONCILIATION BETWEEN BALANCE OF PAYMENTS AND AGENCY ESTIMATES OF INTERNATIONAL TRANSACTIONS (in millions of dollars) Description Government grants and loans, as shown in agency reports on international transactions (lines 4 and 6, table L-4) Difference in definitions of grants and loans: Add: Agency for International Development administrative expenses Peace Corps expenditures Payments of the Foreign Claims Settlement Commission Other Deduct: Certain contributions to international organizations Netting of certain receipts Other /. Differences in coverage and reporting: Add: Inclusion of Trust Territory payments Payments to foreign-flag carriers Payments for expenditures in the United Stares but entering foreign dollar accounts in U.S. banks Agency for International Development payments Other (net) , Deduct foreign currency transactions (net) Transactions involving direct dollar payments to foreign accounts as shown in balance-of-payments statistics 1964 724 33 II 8 10 105 50 16 20 16 17 45 14 7 720 PART 7 HISTORICAL TABLES 489 490 THE BUDGET FOR FISCAL YEAR 1966 Table 15. ADMINISTRATIVE B U D G E T TOTALS A N D PUBLIC D E B T , 1789-1966 (in millions of dollars) ADMINISTRATIVE BUDGET Fiscal year Receipts Ex- penditures Surplus <+) ? r ADMINISTRATIVE BUDGET Public debt at end of year* Fiscal year Receipts deficit (-) Expend- Surplusr (+> ° deficit ) Public debt at end of year * 1,160 1,090 +70 13,895 14,932 - 1 , 0 3 7 63 1,437 1933.... 1934.... 1,997 3,015 4,598 6,645 -2,602 -3,630 22,539 27,734 +46 +63 ,263 ,222 ,178 ,159 ,136 1935 1936 1937 1938.... 1939.... 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 1,132 1,143 1,147 1,178 1,148 1940_._. 1942""." 1943 1944 5,137 7,096 12,547 21,947 43,563 9,055 - 3 , 9 1 8 48,497 13,255 - 6 , 1 5 9 55,332 34,037 -21,490 76,991 79,368 -57,420 140,796 94,986 -51,423 202,626 +3 (*) (*) 1,147 1,154 1,194 1,193 1,188 1945 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 , 8 1 1 259,115 269,898 258,376 252,366 252,798 1915 1916 1917 1918 1919 683 746 -63 762 713 +48 1,100 -853 1,954 3,630 12,662 - 9 , 0 3 2 5,085 18,448 -13,363 1,191 1.225 2,976 12,455 25,485 1950 1951 1952 1953 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 1920 1921 1922 1923 1924 6,649 5,567 4,021 3,849 3,853 6,357 5,058 3,285 3,137 2,890 +291 +509 +736 +713 +963 24,299 23,977 22,963 22,350 21,251 1955... 1956 1957 1958 1959 60,209 67,850 70,562 68,550 67,915 64,389 - 4 , 1 8 0 66,224 +1,626 68,966 +1,596 71,369 - 2 , 8 1 9 80,342 -12,427 274,418 272,825 270,634 276,444 284,817 1925 1926 1927 1928 1929 3,598 3,753 3,992 3,872 3,861 2,881 2,888 2,837 2,933 3,127 +717 +865 +U55 +939 +734 20,516 19,643 18,512 17,604 16,931 1960 1961 1962.... 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 1930 1931 1932 4,058 3,116 1,924 +738 3,320 3,577 -462 4,659 - 2 , 7 3 5 16,185 16,801 19,487 1965est___ 91,200 1966est._. 94,400 97,481 - 6 , 2 8 1 99,687 - 5 , 2 8 7 316,900 322,500 1789-1849. 1850-1899. 1900 1901 1902 1903 1904 567 588 562 562 541 521 525 485 517 584 1905 1906 1907 1908 1909 544 595 666 602 604 567 570 579 659 694 1910 1911 1912 1913 1914 676 702 693 714 725 694 691 690 715 725 +77 +45 -43 -23 +25 +87 -57 -89 -18 +11 Note.—A classification of administrative budget receipts and expenditures for the period 1955 to 1966. inclusive, is found in table 17 (p. 492) and table 18 (p. 493), respectively. The change in the public debt from year to year is not necessarily the same as the administrative budget surplus or deficit. It reflects also changes in the Government's cash on hand, and the use of corporate debt and investment transactions by certain Government enterprises. Certain interfund transactions are excluded from administrative budget receipts and expenditures starting in 1932. For years prior to 1932 the amounts of such transactions are not significant. Refunds of receipts are excluded from administrative budget receipts and expenditures starting in 1913; comparable data are not available for prior years. *Less than one-half million dollars. 1 Includes Government enterprise debt guaranteed by the U.S. Treasury. 491 HISTORICAL TABLES Table 16. CONSOLIDATED CASH TOTALS AND FEDERAL SECTOR OF THE NATIONAL INCOME ACCOUNTS, 1940-66 (in billions of dollars) 1 Fiscal year Receipts Payments Surplus (+) ?r deficit (") Receipts Expenditures Surplus (+) ?r deficit (-) 6.9 9.2 15.1 25.1 47.8 9.6 14.0 34.5 78.9 94.0 -2.7 -4.8 -19.4 -53.8 -46.1 7.6 11.9 19.5 29.6 43.4 9.0 13.5 33.5 76.7 91.3 -1.4 -1.6 -14.0 -47.1 -47.9 50.2 43.5 43.5 45.4 41.6 95.2 61.7 36.9 36.5 43.9 37.3 42.9 43.7 40.6 -45.0 -18.2 +6.6 +8.9 +1.0 97.1 56.6 31.7 32.3 40.0 -53.2 -19.3 +11.2 +11.4 +.2 1950 1951 1952 1953 1954 40.9 53.4 68.0 71.5 71.6 43.1 45.8 68.0 76.8 71.9 -2.2 +7.6 * -5.3 -.2 42.0 61.7 65.5 69.9 65.9 42.2 45.3 66.6 76.2 74.5 -.2 +16.3 -1.1 -6.3 -8.6 1955 1956 1957 1958 1959 67.8 77.1 82.1 81.9 S).7 70.5 72.5 80.0 83.5 94.8 -2.7 +4.5 +2.1 -1.6 -13.1 67.0 76.3 80.9 77.8 85.9 68.1 69.5 76.5 82.8 90.3 -1.1 +6.8 +4.4 -4.9 -4.4 1960 1961 1962 1963 95.1 97.2 101.9 109.7 94.3 99.5 107.7 113.8 1964 1965 (estimate) 1966 (estimate) 115.5 117.4 123.5 120.3 121.4 127.4 +.8 -2.3 -5.8 -4.0 -4.8 -4.0 -3.9 94.5 95.4 104.3 109.6 114.7 116.0 92.1 97.8 106.2 112.3 118.5 +2.4 -2.4 -1.9 -2.8 -3.9 -5.0 -6.0 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 __ .. 40.1 121.0 121.0 127.0 Note.—For an explanation of the consolidated cash statement and Federal sector of the national income accounts, see special analysis A (pages 356 to 365). Classifications of receipts and expenditures on both the consolidated cash and national income bases, for fiscal years 1955—66, are shown in table 19 (page 498), and table 20 (page 499), respectively. *Less than $50 million. CO Table 17. ADMINISTRATIVE BUDGET ,\ND TRUST FUND RECEIPTS, 1955-66 (in millions of dollars) Actual Description to Estimate 1956 1957 1958 1959 I960 1961 1962 1963 1964 1965 9,131 579 924 585 2,562 -181 32,188 20,880 9,929 322 1,161 682 3,003 -315 35,620 21,167 9,055 328 1,365 735 2,760 -467 34,724 20,074 8,612 333 1,393 782 3,200 -567 36,719 17,309 8,504 321 1,333 925 3,160 -355 40,715 21,494 9,137 339 1,606 1,105 4,062 -694 41,338 20,954 9,063 * 1,896 982 4,080 -654 45,571 20,523 9,585 47,588 21,579 9,915 48,697 23,493 10,211 47,000 25,600 10,733 48,200 27,600 9,750 2,016 1,142 3,206 -633 2,167 1,205 4,435 -513 2,394 1,252 4,076 -664 2,800 1.415 4,485 -833 3,200 1,520 4,730 -600 60,209 67,850 70,562 68,550 67,915 77,763 77,659 81,409 86.376 89,459 91,200 94,400 5,587 1,146 6,905 1,330 7,192 1,542 1,479 8,233 1,501 2,026 8,446 1,701 2,074 10,728 2,167 2,539 12,404 2,398 2,798 12,561 2,7^9 2,949 14,862 3,009 3,279 16,832 3,042 3,519 16,685 2,950 3,639 18,731 2,900 3,959 1955 1966 ADMINISTRATIVE BUDGET FUNDS Individual income taxes Corporation income taxes. _ _ _ _ Excise taxes (net) Employment taxes Estate and gift taxes Customs _ _ _ Miscellaneous receipts Interfund transactions Total administrative budget _ __ __ _ _ _ 28,747 _ _ _ 17,861 _ ____ . TRUST FUNDS Employment taxes Unemployment tax deposits by States Excise taxes Federal employee and agency payments for retirement__ _ _ __ ___ Interest on trust funds Veterans life insurance premiums Miscellaneous trust receipts Interfund transactions. ____ __, Total trust funds 473 813 1,178 441 660 -16 1,212 441 918 -12 1,175 1,324 452 1,146 -10 1,252 1,350 485 1,317 -11 1,507 1,323 478 1,375 -135 1,504 1,337 482 2,494 -908 1,740 1,414 504 2,840 -515 1,756 1,433 501 2,889 -528 1,878 1,477 494 3,195 -505 2,029 1,613 494 3,322 -521 2,159 1,747 494 3,419 -579 2,162 1,867 491 4,105 -599 9,470 11,607 14,301 16,153 16,769 20,342 23,582 24,290 27,689 30,331 30,515 33,616 Note.—Figures shown in this table are net of refunds, but correspond to the net figures used in the same classifications for fiscal years 1964 to 1966 in table 13 (pages 56 to 61). *Less than one-half million dollars. w o d 3 i Table 18. ADMINISTRATIVE BUDGET AND TRUST EXPENDITURES BY FUNCTION, 1955-66 (in millions of dollars) Actual Estimate Description 1955 1956 1957 1958 1959 I960 1961 1962 1963 1964 1965 1966 11.403 7,931 12,838 11,582 8,400 12,227 11,409 9,487 13,488 11.611 9,761 14,083 11,801 10,378 14,409 11,738 10,223 13,334 12,085 10,611 13,095 13,032 11,594 14,532 13.000 11,874 16,632 14,195 11,932 15,351 14,820 12.220 13.275 14,800 12.160 13,220 2.261 1.715 2,101 2,079 2,406 1,968 2,504 1,753 2,866 1,948 4,710 1,626 6,131 1,605 6,319 1,347 -617 -598 -323 -643 -179 -416 -300 6,376 1,144 427 90 203 -99 -1,401 7,021 1,026 580 107 -452 6.700 1,000 630 125 -670 6,400 920 660 110 -370 Total, Department of Defense—Military. 35.531 2,292 057 Military assistance 2 1.857 058 Atomic energy 1.015 059 Defense-related activities 35,792 2,611 1,651 669 38,436 2.352 1,990 590 39,071 2,187 2,268 709 41.223 2.340 2,541 379 41,215 1.609 2,623 244 43,227 1,449 2,713 104 46,815 1,390 2,806 92 48,252 1,721 2.758 24 49,760 1,485 2,765 172 48,100 1,200 2,700 160 47,900 1,100 2.530 48 40,695 40.723 43.368 44.234 46,483 45,691 47.494 51,103 52.755 54,181 52,160 51,578 121 1,869 100 220 129 1.519 111 708 157 1.559 133 1.463 173 1,788 149 1,195 237 3,305 139 1.120 217 1.381 137 1,327 216 1,927 158 1,653 249 2.130 197 1.726 346 1,826 201 1,779 297 1,479 207 1,704 346 1.820 216 1,661 321 1.780 221 1,661 2.310 (220) 2,467 3,311 (708) (1,463) 3,305 0.195) 4.802 (1,120) ADMINISTRATIVE BUDGET FUNDS 050 National defense: 051 Department of Defense—Military: Military personnel _ Operation and maintenance Procurement Research, development, test, and evaluation -_ Military construction Family housing Civil defense _ _ Revolving and management funds Total, national defense._ ._ _ 150 1 a o International affairs and finance: 151 152 153 154 Conduct of foreign affairs Economic and financial programs * Foreign information and exchange activities. _ Food for Peace 1 Total, international affairs and finance Of which Food for Peace 1 3,954 3,064 4.301 3.984 3.687 4,043 4.151 (1,327) (1,653) (1,726) (1,779) (1.704) (1,661) (1,661) See footnotes at end of table, p. 497. CO 00 Table 18. ADMINISTRATIVE BUDGET AND TRUST EXPENDITURES BY FUNCTION, 1955-66 (in millions of dollars)—Continued Actual Description 1955 ADMINISTRATIVE BUDGET 250 1956 1957 1958 1961 1962 1963 1964 1965 1966 3.085 3,386 703 Space research and technology: Total, space research and technology.. 11 25 1 109 113 125 8 154 279 232 565 359 1,516 483 2,768 641 17 61 92 112 217 272 460 650 693 110 W 107 904 74 71 76 89 145 401 744 1,257 2,552 4,171 1,012 4,900 3.356 236 3.286 232 2.092 248 2.211 269 4.275 311 2,370 289 2,345 349 3.093 234 3,954 300 4,144 251 3.103 242 2.716 138 204 290 173 217 305 215 267 374 227 297 315 255 315 376 291 330 368 293 301 397 324 303 426 341 342 404 391 342 410 414 199 441 493 200 424 466 4,259 4.254 3.208 3,346 5,568 3.650 3.717 4.397 5.390 5.560 4,477 3,944 5.100 Agriculture and agricultural resources: 351 Farm income stabilization 1 __ _ 352 Financing farming and rural housing 353 Financing rural electrification and rural telephones 354 Agricultural land and water resources 355 Research and other agricultural services Total, agriculture and agricultural resources (not including Food for Peace) 1 - 400 I960 1959 FUNDS—Con. 251 Space research and technology: Manned space flight Scientific investigations in space Meteorology, communications, and other space applications Other research, technology, and supporting operations 350 Estimate Natural resources: 401 402 403 404 405 409 Land and water resources Forest resources _ __ __ Mineral resources Fish and wildlife resources Recreational resources . General resource surveys and administration. Total, natural resources 3 B tr1 W I—i CO 935 119 37 43 35 34 804 139 38 45 44 36 925 163 62 51 59 38 1,139 174 59 60 69 44 1,184 201 71 68 85 61 1,235 220 65 68 74 51 1,394 331 61 73 91 55 1,564 280 68 81 94 60 1,699 303 71 94 112 73 1,747 332 91 105 130 73 1.885 383 109 121 145 92 1,837 359 111 114 186 1.203 1,105 1.298 1,544 1,670 1,714 2,006 2,147 2,352 2,478 2.735 2,691 84 OS 500 Commerce and transportation: 501 Aviation.. __ _____ 502 Water transportation 503 Highways 505 Postal service 506 Advancement of business 507 Area redevelopment 3 508 Regulation of business Total, commerce and transportation. 550 179 349 647 356 -343 180 420 783 463 219 365 40 518 5 119 38 41 1,225 174 -116 56 22 494 436 30 774 568 508 38 525 716 569 36 914 234 265 271 45 315 392 31 674 170 * 49 58 59 1,892 1,305 1,632 2,025 -67 31 4 23 -254 60 49 27 -126 51 78 26 732 97 108 33 67 781 654 33 797 427 7 74 808 672 41 770 366 101 84 835 658 39 578 401 401 91 868 705 43 718 556 385 96 834 728 42 714 124 261 101 1,963 2,573 2,774 2,843 3,002 3,372 2,804 -172 134 130 30 -44 150 162 51 -149 163 261 74 -537 178 222 70 -595 149 306 59 -985 221 406 79 -843 236 509 107 Housing and community development: 551 552 553 555 Aids to private housing Public housing programs Urban renewal and community facilities National Capital region w I—I Total, housing and community development. _ 136 -10 -118 30 970 122 320 349 -67 -80 -280 10 o w I—I o 650 Health, labor, and welfare: 651 652 653 655 659 Health services and research Labor and manpower Public assistance. _ _ Economic opportunity program 4 Other welfare services 5 _ Total, health, labor, and welfare 700 271 321 1,428 342 479 1,457 461 397 1,558 540 488 1,797 700 924 1,969 815 510 2,061 938 809 2,170 1,128 591 2,437 1,354 224 2,788 145 184 216 234 284 304 327 382 423 2,165 2,462 2,632 3,059 3,877 3,690 4,244 4,538 4,789 215 181 174 189 259 327 332 337 43 44 110 178 225 261 286 350 11 20 46 106 183 98 124 120 143 109 108 50 206 141 156 181 207 219 241 377 343 437 541 732 866 943 1,076 1,244 1,339 466 1,792 484 3,002 347 583 2,190 565 3,499 1,346 728 5,475 6,208 8,328 392 404 408 971 428 383 428 782 310 325 405 347 505 1,509 2,663 1,671 345 2,994 Education: 701 Assistance for elementary and secondary education _ _ 702 Assistance for higher education 703 Assistance to science education and basic research._ _ _. 704 Other aids to education Total, education See footnotes at end of table, p. 497. Table 18. ADMINISTRATIVE BUDGET AND TRUST EXPENDITURES BY FUNCTION, 1955-66 (in millions of dollars) — C o n t i n u e d Actual Esti mate Description 1955 1956 1957 1958 1959 I960 1961 1962 1963 1964 1965 1966 1,829 801 879 717 286 1,864 884 943 7S8 331 1,876 950 977 801 266 2,024 1,037 1,025 856 242 2,071 1,152 864 921 280 2,049 1,265 725 961 266 2,034 1,532 559 1,030 259 2,017 1,635 388 1,084 279 2,116 1,698 -13 1,145 240 2,158 1,743 113 1,229 249 2,173 1,834 -139 1,280 235 2,100 1,827 -826 1,315 208 4,522 4,810 4,870 5,184 5,287 5,266 5,414 5,403 5,186 5,492 5,383 4,623 6,370 62 5 6,787 54 6 7,244 57 6 7,607 74 8 7,593 69 9 9,180 76 10 8,957 83 10 9,120 68 10 9,895 74 11 10,666 88 11 11,200 75 12 11,500 82 12 6,438 6,846 7,307 7,689 7,671 9,266 9,050 9,198 9,980 10,765 11,286 11,594 60 31 12 431 168 96 185 183 76 38 12 475 173 304 220 90 40 12 476 201 602 1\9 100 89 44 19 502 245 84 233 69 102 47 21 566 295 95 255 86 109 '49 20 558 372 84 263 88 118 51 11 607 372 140 289 109 135 57 11 653 419 153 300 136 131 63 21 715 444 142 323 139 126 66 11 791 576 174 335 189 155 77 25 842 598 171 376 173 154 89 26 853 596 169 388 187 1,166 1,576 1,738 1,284 1,466 1,542 1,709 1,875 1,979 2,280 2,41