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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 B I years.
L

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

_ _

$48.7
23.5
10.2
7.1

Total administrative budget receipts

$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 than $50 million.
1Less
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

225
90
29

1,990
-91

9,780
1,324
374
140
729
92
858
407
12,957
2,481
729
627

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

10
5

712

-127
15

5,260
5,683
1,316
99

60
5

966

60
5

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

5 2 19,608
2
3,982
714
2,737
1,387
2,107

31,533 31,757

31,757 33,973

5 9 34,512
3

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

Subtotal
Interfund transactions.

29,406
-521

29,374

Total trust funds

28,885

3,913

20
5

4,137

3,913

17,485
3,336
634
1,372
1,185
1,476

17,485
3,336
634
1,372
1,185
1,476

250

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

156
Note.—For explanation of the columnar headings for 1965 and 1966, see pages 1 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 t Y
Later Years 672 2
67.

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

Full year
effect

$461
265
480
75
475
_ _

_ ._

___

Total of proposed excise tax reductions and repeals, not reflected in
detailed estimates

$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.

Full year
effect

Rural Electrification Administration revolving fund ___
Power Administration revolving funds
_____ __
Other revolving funds __ _ _ __

_
_

Subtotal, revolving funds

20

-177
-124
-20

-177
-124
-20

-321

Subtotal, other user charge proposals. _ _

15
5

20

Other user charges affecting budget receipts:
Increase Patent Office fees
_
All other

248

15
5

Subtotal, transportation user charge proposals

140
5
13
82
8

220

_-

116
4
11
82
7

-321

175

-13

219
-19

247
-14

200

233

522
4

2,350
7

526

Total, administrative budget proposals

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

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. _ _- __




815

581

101
184
22

102
116
32

111
194
34

955

Total, interest

648

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

47
8

81
1

92
8

M.145

14
5

15
2

1
4

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

12
1
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

28
5

2115

26
5

31
0

8
9

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

Payments to the
public
1964

Administrative

Budget

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

Payments to the
public

Recommended
new obligational
authority
for 1966

1964
actual
Administrative

Budget

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

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l

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Total Landings and
Takeoffs Controlled

i

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::;

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:

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

1
0

1822

-37
355

178
455
150
*

162
458

1,572
*

48
432
-250
3

1,889

23
3

73
8

60
2

103
32

149
-17

186
-46

1,674

-178

62
5

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.

* Less than one-half million dollars
1
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

11
4

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
76
2

76
8

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

$397
113

500

1,255

165

70

$368
103

$328

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

__.

1965

1966

,158
,743

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

$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:

Subtotal, administrative budget
Intragovernmental transactions and other adjustments
(deduct):
Interest paid to trust funds and Government agencies
Excess of interest accrued over interest paid

$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

Interest on public debt
Interest on refunds of receipts
Interest on uninvested funds

Total

1965

Recommended
new obligational
authority
for 1966

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

13
3

11
3

3
2

41

145
15
6

142
22
6

2

14
7

45
13

2,280

2,417

2,462

Trust Funds -

1
8

1
9

2
0

Intragovernmental transactions and other adjustments
(deduct)

7
8

8
3

8
6

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 151
footnotes




at end

of

80

83

172

160

48

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

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

18
50

295

INTERNATIONAL
AND FINANCE

18
48

53,762

Total, national defense. _ _

24
40

98

Total 059

150

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

2,227

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

3,858

2,907

1,479

1,820

1,780

48

51

62

46

52

59

166

169

173

161

164

161

214

Total 152

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. _.

425

Total, agriculture and agricultural
resources (not including Food
for Peace) 1
___

*

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

474

1

2

425

Total 355

1
413

492

502

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

2,896

2,478

2,735

2,691

*

*

730

729

751

781

750

87

84

84

87

84

817

813

835

868

834

352
*
417

347
8
458

306
2
350

331
3
371

326
6
397

1

1

365

695

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

.

813

658

705

728

42

__

770
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

503 Highways:
Department of Commerce

430

327

401

556

124

30
145

4
73

332
69

300
85

145
115
*

*

*

nd of table, p. 151.

400
*
*

*
176

Total 507




2,839

331

Total 502

See fo

84

88

502 Water transportation:
Department of Commerce
Department of Defense—Civil
Treasury Department
Other independent agencies: Saint
Lawrence Seaway Development Corporation

92

*

Total 501

73

813

500 COMMERCE AND TRANSPORTATION
501 Aviation:
Department of Commerce
Federal Aviation Agency
Other independent agencies: Civil
Aeronautics Board

86

2,546

;

95

901

Total, natural resources

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 Commission-

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

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

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

Total 551
552 Public housing programs:
Housing and Home Finance Agency
553

5
7

90

Total 508

4
7

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-

11
1

12
1
220

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
*

14

15
1
242

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

2

2

*

2

*

__

See footnotes at end of table, p. 151.
-10
750-000 0—65

25

17

22

25

26

735

Total 904




235

250

23

Total 903
904 Central fiscal operations:
Treasury Department
Other independent agencies:
General Accounting Office
Renegotiation Board
Tax Court of the United States

11
1

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

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

Total 905_
906

606

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 ._

910

1

)

1

1

1

1
*

2
*

1
*

1
*

2
*

352

Total 908

1
1
*

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, general government. _

*

*

. .

*
*

*

*

*
*

*

*

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.




*

185

Total, 910

Allowance for Appalachia
Allowance for contingencies
Interfund transactions 2

*

*

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

*
5

059 Defense-related activities:
Treasury Department

__

*
5
*

*

5

5

5

5

5

1,045

1,139

481

805

976

1

058 Atomic energy:
Atomic Energy Commission

*
5
*

1,149

057 Military assistance:
Funds appropriated to the President

*
5

5

Total 051

*
5
*

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

1
468

-3
460

468

Total 352

-3
589

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

23
*

Total 506

18
*

22
*

12

34

14

18

22

3,830

3,931

3,647

4,104

3,876

4

4

4

4
-183

4
-194

4
-212

4

506 Advancement of business:
Department of Commerce
Federal Deposit Insurance Corporation..

14
*

3,706

503 Highways:
Department of Commerce

34
*

23

Total 502

12
*

4

4

-179

-190

-208

*

*

508 Regulation of business:
Federal Communications Commission.—

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.




3,847

3,969

3,482

3,932

3,690

62

111

162

-37
1,572

48
-250

178
150

HI

162

1,535

-202

328

*
389

458

*
*
355

2
1
432

*

*
368

455

368

550 HOUSING AND COMMUNITY
DEVELOPMENT
551 Aids to private housing:
Housing and Home Finance Agency
Federal Home Loan Bank Board

3,733

62

Total, commerce and transportation.

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:

Deposit funds
Interfund transactions

*
*

*

*

*

*

*

*

21

20

18

19

20

-567
-521

Total, general government

*

18

Total, 910

*

*

Treasury Department
_ . _ _
United States-Puerto Rico Commission on the Status of Puerto Rico
Historical and memorial commissions

*

-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.

(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.)

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

1
4

Salaries, officers and employees NOA
901
Exp.

20,653

Office of the Legislative Counsel NOA
of the Senate
901
Exp.

247




409

co

14

OJ
OS

20,857
2,857

23,794

80

253

31
0

7

B

19,448
B41

244

GO
O

Contingent expenses of the Senate:
Senate policy committees. _ _ 901 NOA
Exp.

351

351
43

B

216

Automobiles and maintenance NOA
901
Exp.

38

Furniture

901 NOA

31

Exp.

4,026

Exp.

47

Exp.

45

901 NOA

17

Exp.

20

1

4,041

901 NOA

395

20

Inquiries and investigations_901 NOA

i

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




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

31

17

2,609

B

43

f

32

Exp.
Postage stamps

40

-1

17

i

2,779

62

62

256

256

15

-5

15

22

22
22
vilian pay increase supplemental.

-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
w
w
d
o

-24
-159
30 1

30

35

3

30

NOA
Exp.

311 1
37

151

3

348

131 ]
20

311

266

209

Joint Committee on Atomic NOA
Energy
901
Exp.

235 |
30

235

Joint Economic Committee_901

Joint Committee on Printing NOA
901
Exp.

B

B

259
124

B




CO
OS

Oi

111
265

Joint Committee on Inaugural NOA
Ceremonies of 1965
901 Exp.
Total, Senate

1

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
15
9

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

18 1
1
»18

136

1

15
1
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.

10
5

-150

45

-45

10
0

55

-100

158
158

20

House of Representatives restau- Exp.
rant fund
901

46

House recording studio revolving Exp.
fund
901

-32

Joint items:
Joint Committee on Internal NOA
Revenue Taxation
901
Exp.

344

344 }
46
20 1

Joint Committee on Defense NOA
Production
901
Exp.

65 1
5 i

80

10

37

70

50

13

605

143

B4

1
7

o

I

B

60

901 NOA
Exp.

37
38

901 NOA

166

Exp.
B

96

O

20

Capitol Police Board

120

299

Joint Committee on Immigra- NOA
tion and Nationality Policy. _
901 Exp.

Capitol Police:
General expenses

390

B

o

141

B

331 [
131

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

80 1
6

Penalty mail costs

901 NOA

80

Exp.

Education of Pages

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.

58,654

1

86

1,314

1

Total, House of Represent- NOA
atives.
Exp.

B

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

Exp.
Contingent expenses




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

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.

(-125)
-613

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

38
2

35

Restoration.

901 NOA

51

Exp.

54

A
B

-308

o
a

-35

2,470 |

.901 NOA
Exp.

Legislative garage

<
>
o

700
525
52
l
52
Al
A

h3

ftl

153
2.759
A
22

Old Senate Chamber and Old
Supreme Court Chamber in
the Capitol:
Planning for restoration
901 NOA
Exp.

ft)
>
F

700
525

1

54

1

1

54

This increase is to carry out restoration work for which drawings and
specifications have been prepared under funds provided by Congress.

3
o

1

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

(7,300)
(-700)
9,275 -11,032

5

Extension of additional Senate Exp.
Office Building site
901

-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
NOA

20,504

Exp.

Total, Library of Congress. __

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

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

Selection of site and general plans NOA
and designs of buildings
910 Exp.

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
Exp.
Court reports _ _. _ _ _ _ _ _ _ 902

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

A
B

_ _902 NOA

388

Exp.

Salaries and expenses

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.

1,028
B
101
1,125

1,140
B
159
1,292

989
917

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

1,104

902 NOA
Exp.

10
4

NOA

1,110

Exp.

Total, Court of Claims

1,100

Exp.
Repairs and improvements

902 NOA

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
6,735

780

6,653

5,250
5,237
61,290

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

631

5,750
B
205
5,862

Increase covers anticipated increase in jury trials.

63,795
B
6,190
69,401

82,384

791
12,399

81,350
87,865

12,504

65,127

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

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.

11,949

68,782
6,579
74,825

Increase provides for additional referees, and the conversion of parttime referees to a full-time status.

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.




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.

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

2

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
4,671
4,844

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

903 NOA
Exp.

Salaries and expenses

4,599
B
241
4,664

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

903 NOA

§
9
I

T

900 1
B77
977

823

1,162

185

1,127

150

567

11

565

21

5

880

Exp.

Salaries and expenses

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

^5,500

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

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.

A 1,031,250
A
257.812

NOA

111,656

Exp.

Total, international financial
institutions.

61,656
61,656

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
D

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.

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

55,240

1,640

55,000

71

3,100

200

W

1,000

3,100

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.

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

425,000
195,000

495,125
228,000

70,125
33,000

Provision is made for mandatory salary increases and some additional
nonsalary expenses.

j
W

-61,277
9,639

375,000
112,580

Estimate reflects pay increases, expanded training programs, and other
items for administration of the program.

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

201,317

127.000

125.000

-2,000

3

9

Estimate reflects continued requirement for loan assistance, mainly in
the Near East and south Asia.

Development loan fund (liqui- Exp.
dation account)
152

o

(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.




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.
Total, Office of Economic Op- NOA
portunity.
Exp.

785,200
347,325

D

25,200
17,325

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

Corps will expand to 17,000 volunteers and trainees, an increase of 2,000
over 1965, mainly in Africa and Near East-south Asia.

25,000

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

(Activities were transferred to Cooperative State Research Service.)

897

367

-530

(New construction is funded under Salaries and expenses.)

13

7

(Expenditures from the account are expected to be completed in 1965.)

93

-93

(Construction in 1965 completes this installation at Ames, Iowa.)

1

56

-13

-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.

79,417

A
B

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.

-15

NOA

80,180

Exp.

Total, Extension Service

85,174 |
B
-67
85,340

o
o
w

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

Increase is to improve research and technical assistance for farmer
cooperatives.

106

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
355 NOA

9,890

Exp.

Salaries and expenses

10.016

11,366

444

11,306

10,562 |
B
360
10,705

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
355 NOA

11,244

Exp.

Salaries and expenses

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

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.

40,000

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

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

Decrease is primarily result of a shift in funding market development
projects in Brazil from this appropriation to the special foreign currency appropriation.

630

293

Permanent..

355 NOA

18,687

NOA
Exp.

Exp.

19,935

23,591 1
B
305
22,657

(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

Decrease results from less payments to be made in 1966 for prior year
crops than in 1965.

-7,997

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

o

10,000

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.

1
3

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.

(The Corporation is authorized to sell cotton released from the national
stockpile. Proceeds, less costs incurred, are deposited in the Treasury
as miscellaneous receipts.)

3,274,589

Subtotal
o
O

>
1,382,956 12,331,499 -232,310
A
1,180,853
388,205
3,211,286 1,551,445 1,939,650

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.




•-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.

Foreign Assistance and Special Export
Programs
General and special funds:
Public Law 480:
Sale of commodities for foreign NOA
currencies
154
Exp.

(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.)

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

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

i

-2.411

82,860
37,665

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.)

Subtotal




A

1,763,667

-5,033

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.

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

(3,638)
1,159

7,187 1
B
291
7,054

1,604

8,478

1,000

9,627

(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.)

2,573

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.

11,243
11,354

NOA

506,243

Exp.

Total, Rural Electrification
Administration.

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.

25,000
126,097

10,000
9,260

Increase is for enlargement and development loans and repair and
improvement grants.

150,000

4,481

-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

5,000
5,000

Rural housing for domestic farm NOA
labor
352 Exp.
Rural renewal




352 NOA
Exp.

10,000
11,850

1,200
143

1,200
1,750

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

Increase provides for expanded departmentwide audit and investigation
services.

1,190

3

CD
O

OFFICE OF THE GENERAL
COUNSEL

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.

Salaries and expenses

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

Provides for construction of the National Agricultural Library, Beltsville, Md. Planning funds were provided in 1964.

-7

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

3
55
r

(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

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
-40

1,000

(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

The estimate provides for continuation of program at the 1965 level.

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

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

1,100
900

506 NOA
Exp.

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.

2,281
B
101 !
2,301

Increase provides for further automation of the national income
accounts, strengthening balance of payments computations, and
additional income analysis.

-48

Total, Office of Business Eco- NOA
nomics.
Exp.

2,755

373

2,660

359

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

Greater emphasis will be devoted to analyzing commodity data.

300

Exp.

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

*12,850

3,132

12,150

2,700

200
170

9,471 [
B
247
9,450

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

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.

D

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

64,496

136

NOA

79,946

Exp.

Total, Weather Bureau

89,400

Total, science and technol- NOA
ogy.
Exp.
B

B

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.

-800

(2)

NOA

383,518

Exp.

347,332

Total, Department of Com- NOA
merce.

778,618

Exp.

686,344

Total, transportation

A
B

(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.)
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

d
4,000,517
4,164,735

NOA

2,857,483

Exp.

Military personnel, Navy

NOA
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

3,266,059
Exp.

Less: Expenditures related to
NOA comparative deduction
above.
Comparative expenditures.
and m a i n t e n a n c e , NOA
Exp.

3,378,657

3,379,100

3,455,020
85,850

3,436,000
96,000

3,326,000
6,000

3,369,170

Comparative 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

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.

maintenance,

NOA

191,299

Exp.

Operation and
Marine Corps.

175,967

NOA

4,337,159

Exp.

Operation and maintenance, Air
Force.

4,473,198

187,899 1
B
l,621
190,200

192,500

2,980

188,500

-1.700

Estimate continues support of 3 divisions and related support units
at a high state of combat readiness.

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

188,000 1
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

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

(-)

1
DEPARTMENT 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

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

Decrease reflects the large number of claims paid in 1965.

u
o

-4,700

Contingencies, Defense

19,000

530 1

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.

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

>

SI
O

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.




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

NOA
Exp.

Emergency fund, Defense

Total, research, development,
test, and evaluation.

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

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.

224,133
-300.000

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

401 NOA
Exp.

19,115
18.218

A
B
c

.401

NOA

827,146

Exp.

Construction, general.

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

172,862

12,174

172.000 1
A
100

16,800

4,150
4,500

Flood control, hurricane, and shore NOA
protection emergencies
401 Exp.

158,676 ]
A
l,700
B
312
153,700
M,600

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

-1

1

International
gresses

navigation




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

7
5

-111

379

-77

-456

40,087

50,073 |

56,676

41,581

55,634

(Laboratory was completed in 1964 from prior year's financing.)

14.053

-75

(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.




o

5,433

38,275

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

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

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.

26.610

Communicable disease activities NOA
651

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
493,534

I

89,558
91.291

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

Exp.
Air pollution.




.65)

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

Continues research into botulism poisoning and increases support of the
interstate shellfish certification program. New projects in housing
and community sanitation will be initiated.

Occupational health

Radiological health

NOA

169,743

Exp.

Total, environmental health.

141,426

B

117

-30

189,167 1 216,632
B
296
C
122
167,466
192,311

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

651 NOA

51,293

Exp.
A
B
c

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.

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

154,206
150,108

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.

132,487

124,329
743
129,030

National Institute of Dental Re- NOA
search
651 Exp.

19,166
20,337

4,000

188,273
157,295

208,969
182,028

35,000
3,000

176,312
159,916

651 NOA
NOA
Exp.

A
B
c

149,968

10,000
6,000

Construction of community men- NOA
tal health centers
651 Exp.
National Heart Institute
Reappropriation

138,970 1
143
118,990

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

-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

294

National Institutes of Health man- Exp.
agement fund
651

3

-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

Provides for air conditioning Nichols Building, advance planning for
a maximum security building, and miscellaneous improvements.

94

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

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

A

-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

1,455
1,193

334
1,025

39,717

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

1,062
B
42
1,080

Assistance to refugees in the NOA
United States
653

Provides for 46 comprehensive research and demonstration projects
aimed at the reduction of dependency.

400

Salaries and expenses, Office of NOA
the Commissioner
653
Exp.

300
300

1,700
1,500

Research and training (special for- NOA
eign currency program)
651 Exp.

2,000
1,800
1,200

Cooperative research or demon- NOA
stration proj ects
653 Exp.

Reappropriation

NOA
Exp.

837

14,083
42,566

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

A
A

A

Improvement and expansion of NOA
public assistance
653 Exp.

A

A

Grants for maternal and child NOA
health services
651 Exp.
Intragovernmental funds:

A

Advances and reimbursements_653 Exp.

14

Total, Welfare Administra- NOA
tion.

3,057,017

Exp.

3,094,844

A
B
c

114,000
114,000
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 < HEALTH, EDUCATION, AND WELFARE—Continued
DF
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

702 NOA

8,819

Exp.

Salaries and expenses

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
17.957 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.

2,249
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

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

44.362
^250

1,100

392

47,630

800

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.

NOA

88,445

NOA

990

94,878
1,497
1,100

105,795
1,100

401

401

Construction.

Road construction:
401
Contract authorization:
Current
Permanent
Liquidation of contract authorization.

Exp.

(772)
89,020

(990)
93.741

NOA

38,111

42,956

37.630

40,390
A
500
B
724
40,034
MOO

NOA
Exp.

59,224
45.634

educational

Payment to Seneca Nation

68,975




1

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

Exp.
NOA

4,264
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

w

40,670
A 100

18,000

Exp.
Menominee

52,009
47,206

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.

O
NOA
NOA

18,000
(15.000)
14.970

General administrative expenses
409

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.

(1,100)
104,589

Exp.

Resources management

9,420

B

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

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.
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.
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

i-

2,516

94

2.116

2,325
B
97
2,300

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

General administrative expenses NOA
405
Exp.

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

2,137




125,227

3

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
Exp.

2,668
B
80
2,738

3,398

650

3,300

16,000
10,000

125,000
50,000
A 6,000

109,000

1.912
A

Land and water conservation (spe- NOA
cialfund)
405 Exp.

Increase accelerates preparation of nationwide outdoor recreation plan
and strengthens effort for coordination of Federal recreation programs.

562

1,900

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

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

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.. .

7,200
7,200

Program will be continued at about the current level with some
adjustments between operation and construction.
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

A

Claims settlements, inhabitants NOA
of Rongelap Atoll, Trust Terri- Exp.
tory of the Pacific Islands__910

-156
6,100
-950
-950

17,344
18,500

(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

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.

Health and safety

Construction

403 Exp.

-393

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

861

6,945
5.686

109
586

a

3,545

60,861

o

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

Exp.
NOA

115,732

Exp.

Total, mineral resources

613

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

5,373
5,273

5,298
4,992

5,200
4,960

-98
-32

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.

-7

Promote and develop fishery prod- NOA
ucts and research pertaining to Exp.
American fisheries (permanent,
indefinite)
404

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.

General
ses

A
B

administrative

B

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

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

CO
OS

1 -7,658

WATER AND POWER DEVELOPMENT
Bureau of Reclamation
General investigations




401 NOA
Exp.

10,286
10,151

s

-7,610

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.

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.

7
1

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

9
o

(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:




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

1,000
850

Public enterprise funds:

Southeastern Power revolving fund NOA
401 Exp.

Total, Southeastern
Administration.

Power NOA
Exp.

A

1,000
758

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.

A-10,300
A-18,369

NOA

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

9,000

Exp.

Total, Southwestern Power
Administration.

-10,300
-18,369

8,790

10,303

A-18,369

Office of Saline Water
General and special funds:
Salaries and expenses

Operation and maintenance. _ _401




NOA

10,000

Exp.

401

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

1,736

12,250 1
3,900 f

A

11,450
1,000

430,601
404,929

29,000

452,111
M,180
407,980
A
1,270

(Replacement of a demonstration plant transferred to Cuba in 1964
will be financed by a Navy reimbursement and balances of prior
appropriations.)

12,850

17,100 1
2,900

A

A

Total, water and power de- NOA
velopment.
Exp.

1,917

-181

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
409 NOA

3,855

Exp.

3,815

Exp.

28

Exp.

-12

NOA

3,855

4,110 1
B
254

4,479

114

Exp.

Salaries and expenses

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.

7,854
7,732

326
(186)

Limitation on administrative expenses.
Total, Department of the NOA
Interior.
Exp.

A
B

1,190,160
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

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
(156)

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

B

(Estimate contemplates that most of the work of the Office of Alien
Property will be completed, and the Office closed, by June 30, 1966.)

A
B

60,893

B

•

Proposed for separate transmittal, other than pay increase supplemental.
Proposed for separate transmittal, civilian pay increase supplemental.




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.
Total, Immigration and Nat- NOA
uralization Service.
Exp.

68,998

71,097 1
2,064
72,074

B

f

73,604

443

73,024

950

1
1

67,101

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

-9,943

>
a

-5,000 Supplemental in 1965 is to meet the costs of additional claims and

136,700

w

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

-26
-3,800

(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

860

61

855

59

2

-6

8

784

B

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

-124
A-124
86,646

Exp.

87,617




-687

A

Total, wage and labor stand- NOA
ards

Estimate reflects anticipated increase in number of establishments
investigated, partly offset by increased productivity.

81,724

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

Decrease reflects anticipated management improvements and increased
productivity resulting from installation of new workload and productivity measurement system.

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.

842

856 1

938

827

322

1,187

360

Increase reflects transfer of financing for trade negotiation activities
from "Trade adjustment activities" account.

39

Total, Bureau of International NOA
Labor Affairs.
Exp.

1,204

o

Intragovernmental funds:

A
B
c

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

Limitation payable from Unemployment trust fund.
Exp.

4,857 1
B
190
(136)
5,045

4,420
(127)
4,616

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, Department of Labor.




NOA

1,989

NOA

417,474

Exp.

370,415

3,183
B
162
3,545

2,219

Exp.

Total, Office of the Secretary-

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.

Operations
_, _ - _
_

Facilities
Construction, postal facilities _ _
A
B
c

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)

Research, development, and
engineering.

Transportation

719,102

(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




152,953

Exp.
Representation allowances _

151 NOA

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

3

1,050
1,000

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

Exp.
Exp.

176,999

Exp.
A

168,170

(All funds will be obligated or withdrawn by the end of 1965.)

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

356

Total, administration of for- NOA
eign affairs.

B

1,5001
M00j

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.

d
o

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.

f

1,000 1
B-150

115

630

4,193

f

national organizations account for the increase.

17,384

on Exp.
151

-5

Total, international organiza- NOA
tions and conferences.
Exp.

104,487

-17,384

U.S. Citizens
NATO

Commission




108,627

94,642 1 104,361
B—956
103,900
110,614

f

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.

715
714

785 1
30
814

815

Eight project feasibility studies will be continued and one will be
initiated.

B

816

2

NOA

2,015

1,963 |
B
24

2,029

42

Exp.

Operation and maintenance _ 401

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.

Construction

401

NOA
Exp.

Chamizal settlement

401

NOA
Exp.

International
sions

430
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

B

fisheries

NOA
Exp.

American sections, international
commissions
401

530

58 Increase is largely for additional water pollution surveys under joint

500

50

2,300
2,200

275
300

460 1
12
450

B

2,025
1,900

plans with Canada.

-51

51

43,531 1
B
66
28,448

19,557

-24,040

41,345

12,897

Proposed for separate transmittal, civilian pay increase supplemental.




Estimate reflects additional project maintenance requirements and
installation of advanced water data recording system.

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.

8,200
9,900

8,849

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

10,550

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

499
499

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

Interest is paid on open book balances of 8 trust funds.

3
O

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

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

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

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

Increase provides additional funds for equipment and supplies.

-295

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
10,665,858 11,200,000 11,500,000
manent, indefinite)
851 Exp.
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

The increase reflects a higher average level of outstanding debt, and i
higher average rate of interest.

310,848

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
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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

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

-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

542,600 j
12,500
540,000

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

Operations

B

501 NOA
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

W

-31,000

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

1
8

-18

Construction, U.S. Mission Build- Exp.
ing, New York, N.Y
905

11
3

-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

Sales to the military and civil agencies are estimated at $704 million in
1966. Customer advances will help provide capital.

1,803

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.
C
O

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

Total, defense materials ac- NOA
tivities.
Exp.

23,925

17,755 1
B
119
17,823

Estimate provides for inventory management, storage, and disposal of
strategic and critical materials, and administration of national industrial equipment reserve.

O
O

-100

Exp.

Intragovernmental funds:
Advances and reimbursements_059 Exp.

}

17,525

-349

17,400

-423

1,650

22

1,650
Exp.
1.436
Proposed for separate transmittal. civilian pay increase supplemental.

(Liquidation of the fund will take place in 1965.)

22

15,843

}

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

25

25

-163

-121

O

Funds previously appropriated will remain available for payment of obligations.

Refunds under Renegotiation Act Exp.
(interest)
905

H

Expenses
tion

Presidential

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)
-300
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

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

(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.)

631,605

Exp.

592,711

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

434

NOA

2,353
B
110
2,346

1,831

Exp.
Subtotal

NOA

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

W

Exp.

592,020

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

553 NOA
Exp.

21,150
15,233

Urban studies and housing research NOA
551
Exp.

387

Urban planning grants

340

13,675
20,000

1,500

1,103

1,000

500

10,145
2,645
A3.400

4,395

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

d

Increase will provide expansion in comprehensive planning assistance to States, counties, small cities, and metropolitan and
regional areas.

Administrative expenses, public NOA
works acceleration
507 Exp.

(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.

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
(1.157)
803

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

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

-4,972

(2,500)
2,500
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.

75

B

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

41,800

31,620

23,928
A 799

23,751

-25

35

10,180
A
976

-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
Limitation on no:
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

248,210

17,858

232,768 1
A
4,900

A

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.

623,253
593,814

4,575,900
4,120,000

D

262,880
524,000

NOA 496,099
416.777
Exp.

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
D

188,180
118,000
-13,853
-19,814

>

Decrease is a result of completion of funding for major new facilities in
support of the manned lunar landing program.

609,400
574.000

o
o

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.

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




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

-133,883

(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

-26,755

30

nongovernmental funds:
Supply fund

805 Exp.

2,294

Total, Veterans Administra- NOA
tion.

5,575,858

Exp.

5,478,101

-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

3
385

Exp.
A
B

910 NOA

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

o

Exp.

-69
2,148

300

2
2,075

2,050

-25

521

\,287

766

(Account is available only to pay old obligations.)

B

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

87,656

86,786

83,938

-2,848

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.

Increases are primarily to strengthen the aircraft accident investigation
program.

186

508 NOA

(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

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

Payment to civil service retirement NOA
and disability fund
906 Exp.

62,000
62,000

65,000
65,000

Q

-14,800

14,800

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.

Trust fund:
Limitation on administrative expenses, employees life insurance
fund.

(270)

(274)

67,000
67,000

(279)

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




2,000
2,000

-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

120
B
3
123

Estimate provides for additional consultant services.

123

87

Exp.

91

123

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

Short-term credit investment fund Exp.
352

5,490

-13,926

-13,887

Total, Farm Credit Adminis- Exp.
tration.

-8,597

-6,023

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

7,975

Banks for cooperatives investment Exp.
fund
352

-4

-111

(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)

496

(26)

B(8)

Exp.

-248,097
-

-313,019

-335,663

Home Owners' Loan Corporation Exp.
fund
551

1

2

2

-248,420
—

-313,256

-335,404

Total, Federal Home Loan
Bank Board.
A
B

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:

508 NOA

2,575

Exp.

Salaries and expenses

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

Q

652 NOA

5,688

Exp.

Salaries and expenses

5,702

6,100 |
B
234
6,262

6,652

318

6,615

353

13,539

564

13,422

Increase will permit additional assistance to labor and management, particularly in preventive mediation.

485

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

(Commission has completed its mission.
tember 1964.)

Final report was issued Sep-

-79

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

1,420

1,650 |
B
64
36,569

236

1.935

B

8,924

Increase due to necessity of completing Polish Claims program, last full
year of General War Claims program, and start of the Cuban program.

n

360

34,994

Total, Foreign Claims Settle- NOA
ment Commission.
Exp.

1,950

3
O

-34,994

1,950

236

1,935

(Completion of program in 1965 and transfer of $24 million of unobligated balance to the Philippine education program.)

-34,634

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

(The Commission will complete its work in 1965.)

£

The Commission will terminate its activities in 1966.

100

100

100

106

100

110

10

25
25

35
35

10

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

16

10
-9

9
25
25

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

297

294

NOA

24,669

Exp.

902

NOA
Exp.

Salaries and expenses

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

G

555

Land acquisition, National Capital
park, parkway, and playground
system
555
B

NOA

650

Exp.

Salaries and expenses

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

420,400
325,000

-8

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

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.

44

5
44

B

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

A
B
c

5,375

19,717 1
A3

4,843

5,465
116

1,000
2,183

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

w
>
o
o

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.

1,300
1,171

Archeological research and excava- NOA
tion (special foreign currency Exp.
program)
704
Remodeling of Civil Service Com- NOA
mission Building
704 Exp.

20,865

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

1,539
1,592

14
-307
-1,364
-1,183

2,248
1,349

Restoration and renovation of NOA
buildings
704 Exp.

180

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.

d

(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

CO

o
>

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

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
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

2,190

7

2,170

Increase willfinanceprinting of an index digest of Board decisions.

155

-2

435

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.

3,912
2,700
5,250
A
2,100

1,400

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

o
a

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.

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

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

(Receipts, mostly from States and local organizations, are used in work
under cooperative agreements with Agricultural Stabilization and
Conservation Service.)

52

o

s

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

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.

A

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.

Miscellaneous trust funds

9

Total, Department of Health, NOA
Education, and Welfare.
Exp.




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
1,830
1
,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

Total, Department of Labor.

NOA
Exp.

102,700

48,000

-54,700

63,302

652 NOA
Exp.

1
4

48,372

Bureau of Employees' Compensation NOA
trust funds
906 Exp.
Miscellaneous trust funds

-14

325,402

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.

(8,641)

(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.

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.

Miscellaneous trust funds.

3,826
3,308
1,507
7,486

51
18

21
21

21
21

8,979
7,786

9,714
8,812

10,025
9,664

_ 151

Total, Department of State..




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.

(258)
292

NOA
Exp.

Advances and reimbursements

905

2,035
300

20

905

25
71

National Archives gift fund

(-82)
-82

(82)
82
40
300

53

Exp.

National Archives (trust revolving Exp.
fund)
905
Total, General Services Administration

NOA
Exp.

-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

41
7

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

-436

(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

1
1

National Capital Housing Authority Exp.
trust revolving fund
555

111

45

1

Battle of Lake Erie Sesquicenten- NOA
nial Celebration Commission, Exp.
donations
910




(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.)

(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.

Federal Deposit Insurance Corporation:
Included under "Government- Exp.
sponsored enterprises" above.
Included under "Deposit funds" Exp.
above.

228,050

20,472

-1,605

-510

1,125

1,635

14,380

4,300

3,000

-1,300

211,368

232,175

20,807

-182,866

-194,000

-212,000

-18,000

-2,780

477

-370

-847

-185,646

Total
Total:
Included under "Government- Exp.
sponsored enterprises" above.
Included under "Deposit funds" Exp.
above.
Not included above
_ _ Exp.
Total, annexed budgets.

207,578

194,978

Total

182,203

Exp.

-193,523

-212,370

92,537

67,050

-267

155

422

30,450

7,179

8,085

906

148,299

99,449

75,290

o
a

-25,487

81,420

(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.)

-18,847

36,429

(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.)

-24,159

* 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

Writeoffs (including
capital transfers)

Nevr obligational
authority

1964

1964

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

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

1966

719
1

756

300

1965

42

150

28

90
18
304

65
11
20

2

2
32

1
2

1

410
1,425

858

31

2

1

30
*
*

250
1

()
V

230
114
150

248
217
100

90
47
1

145
48

13
59
*

6,470

7,788

5,444

1

135

692
92
*
3
4
287

50

206
212
102
150

50

50

50
*

53
*

57
*

578

1,539

1,340

163
6
3
183

282
317
*

*
*

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

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
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.

1965

2,868
25

2,986
10

Undrawn authorizations as
of June 30
1964
actual

1966
estimate

1966

1965

199
27

2 3,377

2 3,772

1,229
1

1.077
2

10

17

6
172
143
15

199
27

22,381

M5
242
142

199
81

10

10

20

18

19

3,144
42

7
208
68
13

3
67
302
541
1
1

2
44
304
579
*

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

3
300

250

3

829

3

1,010

3

746
4,294
4.816

,116

358
31
126

8,301

206

1,500
989
249

1,500
950
266

1,500

5,170

5,773

6,000

3,000
1,000

11

4,556

4,645
5,055

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,
— $4 million; and 1966, $8 million.
2
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

1964
actual

Subtotal
Government-sponsored enterprises

Total.

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

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)

1965

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

1964

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




_

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

1966
stimate

1965

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.
L budget appendix includes detailed budget statements with
e
>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

1964

Civilian personnel costs of trust funds:
Direct compensation
Personnel benefits
Total

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

4.550

4,650

12,000
1.050

12.800
1,100

12.900
1,100

13.050

_._

17.600
1,500

4.200

Total

1966

16.450
1.400

Total civilian personnel costs:
Direct compensation
Personnel benefits

1965

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

1964

1965

1966

1964

_

__

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
__

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

11.286
3.738
26,841

11,594
3,586
27,230

-664

103
-833

97,684

Grand total

10,765
3.522
26.266

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

_____

_

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

__

_ _

_.

312

957
4
-589

1,130
17
-520

1,180

628

820

386

318

-36
5

-1
2

-1
2

-31

1

1

35

35

47

4

Total, loans, civil.

264

2,047

Total, to foreign borrowers, civil

131
44
27
2
15
42
52

371

To foreign borrowers:
Funds appropriated to the President: Economic assistance.
Department of State: Loan to the United Nations
Export-Import Bank of Washington

109
42
32
-3
5
33
45

173

Total, to State and local governments, civil

91
44
24
-45
6
17
36

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.

*Less than one-half million dollars.




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

118
25

139
31

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

838
86

1,571

Total, education, training and health, civil

Total, education, training, and health. _ . _ _ _

224
85

113
21

_

National Defense: Atomic Energy Commission

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.. -

25
89
74
4,694
40

49

58

207
66

5,844

6,389

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

26
19

26
28

38
30

_

25
81
95
4,376
40
159

15

_ _ _

23
66
63
3,733
32
147

23

Total, research and development, national defense._ __ _

686
86
67

263
80
7,021
43
12
1,236
9

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. _
_
...

595
70
50

5,083

Total, research and development, civil

637
66
37

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, business, civil
National defense: Funds appropriated to the President: Expansion of defense production.
_
__ __

Labor-civil:
Department of Labor:
Advances for employment services
Other
Other agencies
Total, labor
'"Less than one-half million dollars.




_
_ __

65
*

68

69

-28

-30

-30

39
2
74
5

41
3
11
21

45
10

84
11

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

1,418

1,375

154

125

15

1,405

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
__
__ __ ___

75
39
2,495
216

5,181

___

1,247
30
80
32
3,385
204
-6

1,251

Total, agriculture

Total, business

1,140

1,415
126
38
73
2,858
60
-15

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

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

_

68
164
73

52
28

__ _ __

67
162
72

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
*

57
5

56
5

62

61
*

50

63

61

1

1

1

34
18
-183

43
22
-194

44
25
-212

-131

-129

-142

453

466

556

6

Total, research and development

44
5

*

Research and development—civil:
Department of Commerce: Bureau of Public Roads and
other
Other agencies

*

49

Education, training, and health—civil

-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

i
72
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

Total by type of assistance
Grand total
1

Guarinsureo*
loans

38

21

53

149
7

28

2
47

16
142

20
90

2
28

16
218
M00
20

1,984

301

60

5
100

2,283

302
29
15

155
9

14
397
478
199

202

14
397
576

781
351
540

2,452

12
4
1,930

21

53
567
128
166
228
97
516
778

1,924
211

317
26
12

110

Public Health Service
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

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

17
1,844

217

38

35
401

358

12,973
859
3,157
1,326
21
23

6,888

21,516

28,404

627
168
444
207
110
470
1,153

610

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

2,437
3,869
1,759
71
113
17
53

377

Guaranteed
insured
loans

835

~788

1,524
4,270
2,019

1,343

131
101

593

202
86

5
560

19
85

70
32

21
132

55
126

M00
10

"578"

1,658
4,068
1,949

446
68

Direct
i

52

17
835

406
4

543
18

772
43

78

91

108

112
7,410

77

124
8,996

288

152
3,751

121
3,784

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

Guaranteed

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

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
_
. . .
3-J/8 1/2-40
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

1963

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.




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

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

Agency or program

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

84
8

62

32
3

30
0

15
4

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

100.1

97.0

.1

78.6

5.0
1.4
.1

103.9

104.4

5.0

3.5

.7

73.4

83.0

96.6

12.4

22.8

11.2

(2)

79.0

.1

(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.




2.3

14.4

5.9

2.5

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..

13
5

0.3

0.3

0.3

152
152

23.0
13.9

21.0
14.3

24.0
14.1

12
5

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

Expenditures

1966

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)
Expenditures

Obligatioi I S

Agency
1964
Department of Defense
National Aeronautics and Space Administration. _
Atomic Energy Commission
Department of Health, Education, and Welfare __
National Science Foundation
_
Agriculture
Other
Total

_

_

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

1966
estimate

Conduct of development:
Manned space flight and supporting development. _ _ _
Other 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

478.0

527.0

207.0
74.3

238.0
101.1

219.0
100.6

817.1
405.3

846.6
404.9

1,003.2

Total, conduct of research

408.4

689.7
313.5

_

Total, conduct of development

1965
estimate

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

1965
estimate

1966
estimate

Total

122.8
98.9
3.3

93.7
96.8
3.9

116.3
97.9
5.3

225.0

Meteorological research and service system development
Upper atmosphere research
Studies of planetary atmospheres.
_

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

1965

1966

62.0
24.1

Subtotal, operating programs. _
Ship construction. _
_ ____
Facilities construction
Instrument and equipment procurement
Subtotal, capital program
Total

__

__ _
_

__

85.0
30.6

86.1

_

72.5
27.1
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

EXPENDITURES

1964

National Aeronautics and
Space Administration 2
Department of Defense
Atomic Energy Commission.
Department of Commerce:
Weather Bureau
National Science FoundationTotal
1

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

1965
estimate

1966
estimate

.

Total

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

_ __

11.0
1.2
3.4
13.2
30.1
3.1
1.7
.9

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

Research and development facilities

1966
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

Department of Agriculture:
Agricultural Research Service. _
Cooperative State Research Service
Economic Research Service.
Agricultural Marketing Service
Forest Service. _
Other
Total, Department of Agriculture. _
Department of CommerceNational Bureau of Standards _ _ _
Weather Bureau
Maritime Administration
Transportation research
Other

1965
mate

84.0

109.6

95.0

1.1

.4

1.8
6.0

44.9

74.3

78.3

1964

...

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

1965

1966

mate

1964

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 rgrants-in-aid expenditures under proposed legislation,
58% wiU De f° 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 *

(2)
(2)

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. _

13
5

42
.

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
56
0

.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
371.5

380.9




10.5
20.0
60.1

.3

551

276.7

5.5

551
552
553
553
553
553
553
553

.8
181.9
15.2
211.9

555
555

37.5

49
.

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

55
5
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

63
5
659
659

87.6

100.8

123.3
7.0

652
652

2 79.7

159.5

125.0
67.0
.9

62
5

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

83
.

91
.

10.0

479.4

535.7

1,327.2

76
.

77
.

8.8
.5

76
.

77
.

93
.

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, loans and repayable advances
Total, net budget expenditures

135.9

5.9

4.3
3.5

0.3
5.5

7.8

5.8

263.7

311.9

6,288.0

Total, general government

109.1

173.1

910
910

5.3
130.6

5.9

General government:
Department of Defense—Civil: Corps of Engineers: Construction of power systems, Ryukyu Islands
Department of the Interior: Alaska public works

0.2
108.8

91.5

Total, education

91.5

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

Total, nonexcess currencies
Total

_

3
2
36

5
7

8
11

1
4
6

19
9
5

474
118
76

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
_

6
1
5

1,638

_____

Special
programs

494
131
87

Nonexcess currencies:
Canada
China (Taiwan) 1
Colombia 1
_
Finland l
France
_ _
Germany, Federal Republic of
1
Greece
_____
Guinea 1
1
Indonesia
_ _ _ _ _
Italy .
_
_
Japan

Other
than
special
programs

62
165

Total, excess currencies.

Korea...
Philippines
Spain
oyna *
Tunisia *
Turkey l
United Kingdom
Uruguay1
Other countries

Requirements for
commercial
purchase
in 1966

24
13
662

Excess currencies:
Brazil
Burma__
India
Israel
Pakistan _
_.
Poland
United Arab Republic (Egypt)
Yugoslavia

j r

Amounts
available
for use
after
1966

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

____

___

1,036

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.




__

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

501
-27

516
-11

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

_ _ __
. __ _

- .
_____

37
96

1,655

Total availabilities

47
93

459
-51

Subtotal, collections
__ __
Transfer of excess currencies to country use

1,344

1,246

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)

1,161

56
154

Subtotal, cash balances brought forward

Cash balances carried forward

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

6,200
3,577

49,200
3,300
3,000

9,777

10,787
767

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)
1964
estimate
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




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 .
_

1965

1966

Receipts:
Western Europe (including international organizations located
there)
_
Other countries
Other international organizations and undistributed__
Total

1,982
2,034
447

4,500

.

1,993
2,116
313
4,422

4,464

1,037
1,020

942
1,254

1,522
1,098

81

8

6

2,138

Total

2,023
2,192
286

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-

Surplus
(+> ° r
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

179
349
647
356
-343

550

219
365
40
518

5

119

38

Total, commerce and transportation.

180
420
783
463

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

2,417

2,462

3

107
400
-600
99,687

ADMINISTRATIVE BUDGET FUNDS—Con.

800 Veterans benefits and services:
801 Veterans service-connected compensation
802 Veterans non-service-connected pensions
803 Veterans readjustment benefits
804 Veterans hospitals and medical care
805 Other veterans benefits and services
Total, veterans benefits and services
850 Interest:
851 Interest on the public debt
852 Interest on refunds of receipts853 Interest on uninvested funds

-

Total, interest
900

901
902
903
904
905
906
908
910

General government:

Legislative functions
Judicial functions
Executive direction and management
Central fiscal operations
General property and records management. __
Central personnel management
Protective services and alien control
Other general government
Total, general government

Allowance for Appalachia _
Allowance for contingencies
Interfund transactions
Total, administrative budget funds




_

m

-181

-315

-467

-567

-355

-694

-654

-633

-513

-664

100
-833

64,389

66,224

68,966

71,369

80,342

76,539

81,515

87,787

92,642

97,684

97,481

3

s
CO

TRUST FUNDS
-^
©
©
o
0
1
§
I
I
to

050 National defense
150 International affairs and finance
250 Space research and technology
350 Agriculture and agricultural resources (not
including Food for Peace) 1
400 Natural resources
500 Commerce and transportation
550 Housing and community development
650 Health, labor, and welfare
700 Education
800 Veterans benefits and services
900 General government
Deposit funds _
Interfund transactions.
Total, trust funds.

45

143
-29

93
13

344
1

229
21

256
48

196
13

366
15

679
44

487
62
*

811
-106
*

982
258

73
61
-97
231
7,423
1
628
6
57
-16

288
79
-101
461
7,999
1
606
8
169
-12

426
85
866
1,044
?,585
1
608
8
217
-10

357
101
1,401
-295
12,775
1
671
10
-29
-11

645
94
2,493
1,263
14,306
1
651
10
-60
-135

458
116
2,831
1,439
16,358
1
673
17
-78
-908

416
183
2,505
-273
19,236
1
811
16
203
-515

398
112
2,662
1,524
20,382
1
733
20
-544
-528

507
122
2,877
-36
21,855
2
835
19
146
-505

496
137
3,482
1,889
22,733
2
666
18
-567
-521

615
137
3,932
233
23,386
2
641
19
-47
-579

495
3,690
783
26,549
2
514
20
30
-599

8,577

9,611

12,938

15,325

19,521

21,212

22,793

25,141

26,545

28,885

29,045

32,898

164

175

h1

*Less than one-half million dollars.
1
New subfunction 154, Food for Peace, includes transactions under the Agricultural Trade Development and Assistance Act of 1954, as amended (Public Law 83—480),
in accordance with Public Law 88-638, approved Oct. 8, 1964. Titles I and IV were previously included in subfunction 351, Farm income stabilization and Food for Peace
(now 2 titled Farm income stabilization); title II was previously included in subfunction 152, Economic and financial programs.
Subfunction 057 was combined with subfunction 051 in the 1965 budget.
3
Amounts shown include expenditures under the temporary public works acceleration program, which supplements expenditures in the other functions, as follows:
1963

Housing and community development (553)
Community health facilities and waste treatment (651)
Land, water, mineral, forest, and wildlife resources (400; more than 1 subfunction)
Commerce, highways, and other transportation (500; more than 1 subfunction)
Federal facilities, post offices, and prisons (900; more than 1 subfunction)
Agriculture and agricultural resources (300; more than 1 subfunction)
All other functions

1964

1965

176
69
64
15
6
1
1

185
85
25
4
1

>

w1
tr

1966

13
1
44
2
1
1
__

o
r1

80
65

Total
62
332
300
TS
* New subfunction 655, Economic opportunity programs, contains only appropriations and funds of the Office of Economic Opportunity; related programs of other
agencies are continued in their previous classifications.
5
Subfunction 659, Other welfare services, was previously numbered 655.




CO

4

Table 19. RECEIPTS FROM AND PAYMENTS TO THE PUBLIC, 1955-66 (in millions of dollars)
Actual

Description

Estimate
00

1955

1956

28,747
17,861
131
166
924
585
1, 146
441
2,834

32,188
20,880

3,249

67,836

77,087

1957

1958

35,620
21,167
10,534

34,724
20,074
10,638

7,520

3,171

8,565
1,393
782
1,501
485
3,730

82,105

81,892

1959

1960

1961

1962

1963

1964

1965

1966

36,719
17,309
10,578
8,767

40,715
21,494

41,338

45,571
20,523
12,534
12,561

47,588
21,579
13,194

48,697
23,493

47,000
25,600

13,731
16,832

14,372

48,200
27,600
13,709

RECEIPTS FROM THE PUBLIC
Individual income taxes
Corporation income taxes
Excise taxes
Employment taxes
Estate and gift taxes
Customs
Deposits by States, unemployment insurance
Veterans life insurance premiums
Other budget and trust receipts
Total receipts from the public
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) 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)
Undistributed adjustments
Total, payments to the public
Excess of receipts ( + ) or payments (—)

9,929
7,228
1,161

1,365

682

735
1,542
452

1,330
441

3,851

4,766

81,660

95,078

1,333

925

2,016
1,142

2,729
501
4,288

14,862
2,167

1,205
3,009
494
5,641

2,394
1,252
3,042
494
5,596

16,685
2,800
1,415
2,950
494
6,068

18,731
3,200

1,520
2,900
491
7,139

4,362
4,269
1,179
1,260
1,796
1,148
396
305
9,485 10,254
344
378
5,328
5,114
5,115
4,664
1,583
1,172
169
57
-415 -1,145
70,537

72,546

3,274
3,289
4,458
3,645
6,030
4,113
4,650
5,846
5,703
3,728
1,641
1,379
2,847
2,223
1,822
1,754
2,852
2,595
2,456
2,101
3,060
7,362
2,200
5,487
4,819
4,545
6,549
6,545
5,777
5,107
-178
-319
842
1,691
1,440
2,141
652
1,674
-268
-103
12,108 15,757 18,017 19,107 22,364 23,975 25,698 27,285 28,868 34,091
542
439
1,052
867
733
2,611
1,463
1,299
1,214
945
5,448 5,828
6,092
5,907
5,910
5,111
5,985
6,107
5,971
6,187
5,884
5,266
6,940
7,233
5,350
8,813
8,461
8,011
7,427
7,257
1,292
1,744
1,837
1,475
2,396
2,353
2,221
1,953
1,678
1,558
-544
-29
217
30
-47
-567
-194
203
-78
-60
-420 -1,823 -1,382 -1,114 -1,960 -2,244 - 1 , 7 7 1 -2,862 -1,756 -1,620
80,006 83,472
94,328 99,542 107", 662 113,751 120,332 121,393 127,398

- 2 , 7 0 2 +4,542 +2,099 - 1 , 5 8 0

W
Q

97,242 101,865 109,739 115,530 117,384 123,490

40,852 40,854 43,442 44,552 46,673 45,915 47,685 51,462 53,429 54,514 52,847 52,546
2,239
3,724
2,174
2,806
3,420
3,975
3,976
4,153
3,636
3,492
3,608
3,805
(708) (1,463) ( U 9 5 ) (1,120) (1,327) (1,653) (1,726) (1,779) (1,704) (1.661) (1.661)
(220)
74
401
145
76
5,100
2,552
1,257
744
4,900
4,171
89

Note.—This table shows the flow of money between the Government a
mone
and the
bli
public on a cash (collections and checks paid) basis, which is explained ii more
bi
hh
l d




1,701
478

11,676
11,067
1,606
1,105
2,167
482

20,954
11,860
12,405
1,896
982
2,398
504
4,905

+750 - 2 , 3 0 0 -5,797 - 4 , 0 1 2 - 4 , 8 0 2 -4,009 -3,908

detail in special analysis A, pages 356 to 365.
1
See general notes, page 4, paragraph 4.

3

i
F
W

Table 20.

FEDERAL RECEIPTS AND EXPENDITURES IN THE NATIONAL INCOME ACCOUNTS, 1955-66
(Fiscal years. In billions of dollars)
Actual

Description
1955

1956

1957

1958

1959

Estimate

I960

1961

1962

1963

1964

1965

1966

RECEIPTS, NATIONAL INCOME BASIS
29.9
18.4
10.4
8.3

33.5
21.0
11.2
10.5

36.7
20.4
12.1
11.7

36.3
17.3
12.0
12.3

38.7
21.1
12.3
13.8

42.3
21.7
13.9
16.7

44.2
19.7
13.6
18.0

47.7
21.9
14.9
19.7

50.1
22.1
15.2
22.1

51.4
23.5
16.0
23.8

50.3
23.9
16.8
25.0

52.2
24.7
16.1
28.0

67.0

76.3

80.9

77.8

85.9

94.5

95.4

104.3

109.6

114.7

116.0

121.0

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. _ _.
__ _

45.0
13.8
2.9
4.9

45.2
14.3
3.1
5.0

48.3
16.1
3.6
5.5

50.5
19.4
4.5
5.6

53.9
21.8
6.0
5.8

53.0
22.8
6.7
6.9

54.9
25.9
6.8
6.9

60.0
27.8
7.6
6.8

63.6
29.2
8.3
7.4

66.1
30.4
9.8
8.1

65.9
31.8
10.7
8.5

66.7
35.2
13.0
8.6

1.4

1.9

3.1

2.7

2.7

2.7

3.3

4.0

3.8

4.1

4.1

3.5

Total expenditures, national income basis

68.1

69.5

76.5

82.8

90.3

92.1

97.8

106.2

112.3

118.5

121.0

127.0

-1.1

+6.8

+4.4

-4.9

-4.4

+2.4

-2.4

-1.9

-2.8

-3.9

-5.0

-6.0

Personal tax and nontax
Corporate profits tax accruals.
_
Indirect business tax and nontax accruals
Contributions for social insurance

__ _
__

Total receipts, national income basis.
EXPENDITURES, NATIONAL INCOME BASIS

Surplus ( + ) or deficit (—) national, income basis. _

3

Source.—Actual data for 1955-64 are based on the quarterly estimates published by the Department of Commerce.
by the Bureau of the Budget in cooperation with the Department of Commerce.




o
w
o

I
OP

Data for 1965 and 1966 are based on estimates

CO
CO

INDEX
Acceleration of public works, agency programs,
table F-5. 422
Accounts, Bureau of, 287
Administrative budget:
Expenditures:
As percent of gross national product,
1942-66, chart, 9
By agency, for each appropriation and fund
account, analysis, 158-353
By agency, summary, table 5, 39
By function:
1955-66, table ]8, 493-497
Distributed by agency, table 14, 138-146
Summary, table 1, 35
Changes, 1964-66, 11
Comparison of 1964, 1965, and 1966, text
table, 10
Detail for particular programs, see under
program titles
Gross public enterprise funds, by agency,
table B-l, 367
Investment, operating, and other, see Investment, operating, and other expenditures
Payments to the public, by program table,
1963-65, 16
Relation of, authorization to 1966 budget,
chart, 43
Relation of, to obligational authority,
summary, table 8, 42
Totals summary, 1789-1966, table 15, 490
See also under particular programs
Explanation of, 356
Grand totals, 334
Obligational authority, new, see Obligational
authority
Obligations incurred, net, by agency, table
9,44
Payments to the public, see Payments to the
public
Receipts:
By source:
1964-66, Detailed list, table 13, 57-60
1955-66, table 17, 492
Summary, table 1, 35
Estimated effect of proposed legislation on,
text and table, 54-55
From the public, by source, 1964-66, table
13,51
Summary, table 1, 35
Totals summary, 1789-1966, table 15, 490
Relation of, to consolidated cash statement,
359
Relationship of, to consolidated cash statement and national income accounts,
1964-66, table A-l, 357
Totals and public debt, 1789-1966, table 15,
490




Administrative Conference of the United States,
311
Advisory Commission on Intergovernmental
Relations, 311
Aeronautics and Space Administration, see
National Aeronautics and Space Administration
Aeronautics research and technology, 86-89
Aged, health insurance for, discussion, 23
Aged, hospital insurance for, 13
Agency for International Development, 81-83
Agricultural Library, National, 198
Agricultural Marketing Service, 187-189
Agricultural programs, discussion, 19-20
Agricultural research, 93
Agricultural Research Service, 184-185
Agricultural resources, 89-93
Agricultural Stabilization and Conservation
Service, 189-191
Agriculture and agricultural resources: NOA
and expenditures, 1964-66, distributed by
agency, table 14, 139, 148
Agriculture, Department of, 184-201
General Counsel's Office, 198
Information Office, 198
Inspector General, Office of, 198
Management Services, Office of, 199
Research and development expenditures
analysis, 453
Agriculture, program analysis, 89-93
Aid to Education, see Education
Aid to State and local governments:
Analysis, 462-471
Expenditures:
By agency, table 1-1,464
In relation to total Federal expenditures
and to State-local revenue, table 1-2, 466
Summary by function, agency and program, table 1-3, 467-471
Aid, foreign, see Foreign assistance
Air pollution, 116
Air transportation, 104
Aircraft, supersonic, 17, 104
Airlift, defense, 74, 75
Alaska, Federal Development Planning Committees for, 317
Alaska, Federal Reconstruction and Development Planning Commission, 319
Alaska, transitional grants to, 178
Alaska Railroad, 255
Alaska Temporary Claims Commission, 312
Alien control, 136
Alliance for Progress, 17-18, 82, 83
American Battle Monuments Commission, 312
American Printing House for the Blind, 246
Annexed budgets:
Explanation of, 157
Expenditures and applicable receipts, table
B-7, 372
Memorandum, 352-353
501

502

THE

BUDGET

FOR

Appalachia, allowance for, 334
Appalachian region, development, discussion, 25
Appeals courts, 172-173
Apprenticeship and Training, Bureau of, 272
Architect of the Capitol, 164-167
Area development, Commerce, 103
Area Redevelopment Administration (Commerce), 202-203
Armed forces, see Military personnel
Arms Control and Disarmament Agency, U.S.,
81,330
Army—Civil, Department of the, 225-229
Arts, John F. Kennedy Center for the Performing, 328
Arts, National Council on, 175
Arts, President's Advisory Council on, 177
Assets, nondefense, additions to, chart, 66
Atmospheric sciences, obligations of Federal
agencies for, text and table H-9, H-10,
455 r 456
Atomic energy activities, 77-78
Atomic Energy Commission, 293
Atomic Energy Commission, research and
development analysis and table H-7, 451
Authorizations:
Contract, explanation, 155
Permanent, see Permanent authorizations
Aviation, user charges for discussion, 15

B
Balance of payments and agency estimates of
international transactions, reconciliation between, table L-5, 487
Balance of payments, discussion, 67
Balances:
Budget, explanation, 156
Obligational authority, by agency and type,
table 10, 45
Public enterprise funds, table B-3, 369
Trust fund, table B-6, 371
Battle of Lake Erie Sesquicentennial Celebration Commission, 320
Battle of New Orleans Sesquicentennial Celebration Commission, 320
Bonneville Power Administration, 264
Borrowing by Government enterprise funds,
table B-l 0,374
Botanic Garden, 167
Budget:
Bureau of the, 174-175
Comparison of 1964, 1965, and 1966, text
table, 10
Explanation of, 154-157
Explanation of three types of accounts, 356365
Message of the President, 7-31
Resum6 of, table 1,35
Summary of, 9-12
Business:
Advancement of, 101-103
Small, aid to, 103
Business and Defense Services Administration,
205
Business Economics, Office of, 204




FISCAL Y E A R

1966

Cemeterial expenses, Army, 225
Census, Bureau of the, 204-205
Central Intelligence Agency, 312
Child health, 116-117
Civil Aeronautics Board, 313
Civil Defense, 222-223
Civil Rights, Commission of, 315
Civil Service Commission, 313-314
Civil supersonic aircraft program, 17
Civil War Centennial Commission, 320
Claims, Court of, 172
Coal Research, Office of, 257
Coast and Geodetic Survey, 207
Coast Guard, U.S., 105, 289-290
Commerce:
Department of, 202-213
Field Services Office, 206
Research and development expenditures
analysis, 454
Technical Services, Office of, 208
Stimulation of, discussion, 21
Commerce and transportation:
NOA and expenditures, 1964-66, distributed
by agency, table 14, 141, 148-149
Program analysis, 99-107
Program trends, 1955-66, chart, 102
Commercial Fisheries, Bureau of, 259-260
Commodity Credit Corporation, 191-195
Commodity Exchange Authority, 189
Communication, space satellites, 88
Communications activities, General Services
Administration, 299
Community action programs, discussion, 22, 119
Community development, 107-113, 197
Community health, 115, 234-236
Community relations, 203
Compensation:
Federal civilian personnel, table C-5, 382
President, The, 174
Vice President, The, 158
Conservation, Wildlife, Military reservations,
229
Consolidated cash statement:
Explanation of the, 10-11, 356
Intragovernmental transactions excluded
from, table A-2, 360
Payments to the public, 36
Receipts from the public, table 2, 36
Relationship of, to the administrative budget,
359
Relationship of, to administrative budget and
national income accounts, 1964-66, table
A - l , 357
Relationship of, to Federal sector account,
364-365
Summary, table 1, 35
Totals, 1940-66, table 16, 491
Construction by cooperative and nonprofit
groups, expenditures for, table F-7, 425
Construction, Military, 221-222
Consumer Interests, President's Committee on,
177
Consumer protection, 116

503

INDEX
Continental air and missile defense forces, 72, 73
Contract authorizations, explanation, 155
Cooperative State Research Service, 185
Corps of Engineers, 225-227
Corregidor-Bataan Memorial Commission, 320
Cost reduction in Government, discussion, 2730
Council of Economic Advisers, 175
Courts:
Appeals, District courts, and other judicial
services, 172-173
Claims, 172
Customs, 172
Customs and Patents Appeals, 171
Credit programs, Federal:
Analysis, 404-416
Disbursements and repayments, by agency
or program, table E-3, 410
Interest rates and maturities for major programs, by agency or program, December
1964, table E-5, 413
New commitments, 1955-66, chart, 404
New commitments, by type of assistance,
major agency or program, table E-1, 406
Outstanding direct loans, and guaranteed and
insured loans, by agency or program, table
E-2, 408
Outstanding loans for major quasi-public
programs, by agency and program, table
E-6, 414
Private participation in, 411-412
Sale of loans to non-Federal buyers, and other
repayments, classified by agency or program, table E-4, 411
Customs, Bureau of, 288
Customs Court, 172
Customs and Patent Appeals, Court of, 171

D
Debt:
Private, see Private debt
Public, see Public debt
Debt issuances, by Government enterprise,
table B-10, 374
Debt issuances, in lieu of checks, table A-3, 361
Defense:
Civil, 222-223
Department of—Civil, 225-229
Department of—Military, 214-225
Operation and maintenance, 215-218
Program analysis, 68-79
Research and development expenditures,
1954-65, table H-1, 444, 445
Research and development expenditures,
analysis, 447-449
Research and development, obligations for,
1964-66, table H-5, 448
National:
Discussion, 17
NOAand expenditures, 1964-66, distributed by agency, table 14, 138, 147
Public works, NOA and expenditures, by
major function, agency, and program,
table F-f 431
Defense materials activities, General Services
Administration, 299
Defense production, expansion of, 178




Delaware River Basin Commission, 324
Development, conduct of, obligations and expenditures, table H-1, 444
Deficit or surplus, see Surplus or deficit
Definition of budget terms, 154
Direct loans, new commitments, by agency or
program, table E-1, 406
Direct loans outstanding, by agency or program,
table E-2, 408
Disability insurance, 121
Disarmament, see U.S. Arms Control and Disarmament Agency
Disaster relief, 178
Disbursements for major credit programs, by
agency or program, table E-3, 410
District of Columbia, 332-333
District of Columbia, see also National Capital
Region
District courts, 172-173
Drugs, use and control of, see Food and drug
control

E
Economic Advisers, Council of, 175
Economic assistance, foreign, see Foreign
assistance
Economic assumptions as base for revenue
estimates, 1963-65, 50
Economic development, Commerce, 202-206
Economic opportunity, 118
Economic opportunity, Office of, 183
Economic Research Service, Agriculture, 187
Economy, national:
Effect of expenditures on, discussion, 65
Effect of tax reduction on, discussion, 12-14
Economy and efficiency in Government discussion, 28
Education:
Discussion and text table, 24-25
Elementary and secondary, assistance for, 125
Higher, assistance for, 125
NOA and expenditures, 1964-66, distributed
by agency, table 14, 143-144, 150
Office of, 230-233
Program analysis, 123-128
Program trends, 1955-66, chart, 126
Science, assistance for, 127
Vocational, discussion, 23, 127
Educational exchange, 284
Efficiency and economy in Government, discussion, 28
Electric power programs, 96
Emergency Fund for the President, 178
Emergency Planning, Office of, 176
Employees' Compensation, Bureau of, 276
Employment, Federal civilian:
Analysis, 376-383
By agency, summary, table 12, 47
By agency and type position occupied, as of
June 1963, table C-2, 378
By geographical location, as of June 1964,
table C-4, 381
Compared with State and local government,
1942-66, chart, 380
Compared with State and local government,
total, 1942-65, chart, 29

504

T H E BUDGET FOR FISCAL YEAR

Employment, Federal civilian—Continued
Control of, discussion, 28-29
In relation to population and other employment, 1942-66, table C-3, 379
Reduction of, discussion, 27-28
Summary as of June 1964-66, table C-1, 376
Employment and unemployment tax proposals,
estimated effect of, on receipts, text and table,
52-55
Employment Security, Bureau of, 274
Energy Study Committee, President's, 177
Engraving and Printing, Bureau of, 288
Environmental health, 116, 236-237
Equal Employment Opportunity Commission,
315
Excise tax proposals, estimated effect of, on
receipts, text and table, 52-55
Excise taxes, revision of, 13
Executive Mansion and Grounds, 174
Executive Office of the President, 174-177
Expenditures:
Administrative budget, see Administrative
budget
Annexed budgets, table B-7, 372
By agency, for each appropriation and fund
account, analysis, 158-353
By agency, summary, table 5, 39
By function, distributed by agency, table 14,
138-151
Construction by cooperative and nonprofit
groups, table F-7, 425
Effect of, on balance of payments, discussion,
67
Effect of, on the economy, discussion, 65
Explanation, 155-156
Government dollar, where it goes, chart, 34
Gross:
Analysis of, 366-375
Of Government-administered funds, table
B-9,373
"
Public enterprise funds, by agency, table
B-1,367
Trust revolving funds, table B-5, 370
In relation to Government programs, discussion, 16-26
Investment, operating, and other:
Analysis, 384-403
Summary, table 6, 40
National income accounts:
Explanations, 358
Federal sector, 12,491,499
Summary, table 7, 41
Reconciliation of, in administrative buget,
consolidated cash statement, and Federal
sector of national income accounts, 1964—
66, table A-1. 357
Relations of authorizations to, table 8, 42
Summary, by function, table 1, 35
Trust funds, see Trust funds
See also under particular programs
Expense allowances, Vice President, The, 158
Export expansion program, 84
Export-Import Bank, 82, 84, 315
Export programs, special, 193-195
Extension Service, 185




19 66

Family housing (Defense—Military), 222
Farm Credit Administration, 316
Farm financing, 92
Farm income stabilization, 91
Farm programs, discussion, 19-20
Farmer Cooperative Service, 186
Farmers Home Administration, 196-197
Federal activities, analysis by function 64-151
Federal-aid highways, see Highways
Federal Aviation Agency, 294-295
Federal Bureau of Investigation, 270
Federal Coal Mine Safety Board of Review, 316
Federal Communications Commission, 316
Federal Crop Insurance Corporation, 195
Federal Development Planning Committee for
Alaska, 317
Federal Home Loan Bank Board, 317
Federal Housing Administration, 306
Federal Maritime Commission, 318
Federal Mediation and Conciliation Service, 318
Federal National Mortgage Association, 305
Federal pay adjustment, discussion, 26
Federal Power Commission, 318
Federal Prison Industries, Inc., 271
Federal Prison System, 270
Federal Radiation Council, 177, 318
Federal Reconstruction and Development
Planning Commission for Alaska, 319
Federal revenues, discussion, 12-15
Federal sector accounts, see National income,
Federal sector
Federal Supply Service, 297
Federal Trade Commission, 319
Fine Arts, Commission of, 315
Fiscal operations, central, 135
Fiscal policy, 8—12
Fish and wildlife resources, 99
Fish and Wildlife Service, 258
Food and Drug Administration, 230
Food and drug control, 116
Food for Peace, 82, 84, 85
Foreign affairs, conduct of, 79-81, 280-281
Foreign Agricultural Service, 189
Foreign aid:
Discussion, 17-18
Funds appropriated to the President, 180-182
Foreign assistance programs, 17-18, 31-83,
193-195
Foreign Claims Settlement Commission, 319
Foreign currencies:
Available to meet U.S. requirements, table
K r 2, 478
Availabilities and uses analysis, 476-481
Cash availability of, 1964-66, table K-1, 477
Special program appropriations—NOA, 1964—
66, table K-4, 480
Summary of transactions—country uses,
table K-6, 481
Summary of transactions, U.S. uses, 1964-66,
table K-3, 479
Summary of U.S. uses without dollar controls, table K-5, 481

505

INDEX
Foreign currency, special programs, funds
appropriated to the President, 183
Foreign information and exchange activities,

85 86

r

Foreign trade expansion, 84
Forest resources, 97
Forest Service, 199-201
Former Pre