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THE BUDGET
OF THE

UNITED STATES GOVERNMENT
FOR THE FISCAL YEAR ENDING JUNE 30

1967

U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1966

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C., 20402 - Price $1.50 (paper cover)




A NOTE ON THE FORMAT OF THE BUDGET
Data relating to the budget for 1967 are published in a group of
five documents. The Budget of the United States Government is presented in a compact volume containing the Budget Message of the
President and other significant data to place before the Congress the
President's budgetary recommendations. This volume contains the
facts and figures that most users of the budget would normally need
or desire.
The Budget of the United States Government—Appendix contains the
text of appropriation estimates proposed for the consideration of
Congress together with specific reference materials on the various
appropriations and funds, as well as supplementary schedules required
by law with respect to details of personnel compensation.
The Budget of the United States Government—The District of Columbia
contains the estimates for the municipal government of the District
of Columbia.
A pamphlet type of publication, The Budget in Brief, is available
for those who wish a much more concise presentation than any of
the three official volumes. A second pamphlet type of publication,
Special Analyses of the United States Budget, contains the four special
analyses which are printed in the budget, and nine additional
analyses.
Budget documents for the fiscal year 1967, 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, 1967 ($1.50).
2. The Budget of the United States Government, 1967—
Appendix ($6.50).
3. The Budget of the United States Government, 1967—
The District of Columbia (45 cents).
4. The Budget in Brief, 1967 (35 cents).
5. Special Analyses of the United States Budget, 1967 (50 cents).




TABLE OF CONTENTS
Page

PART 1. THE BUDGET MESSAGE OF THE PRESIDENT

5

PART 2. SUMMARY TABLES
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table

37

1. Budget resume
2. Receipts from and payments to the public
3. New obligational authority by type and function
4. New obligational authority by agency
5. Expenditures by agency
6. Investment, operating, and other expenditures
7. Federal receipts and expenditures in the national income accounts
8. Relation of authorizations to expenditures
9. Obligations incurred, net, by agency
10. Balances of obligational authority
11. The public debt
12. Full time permanent employment in the executive branch

39
40
41
42
43
44
45
46
48
49
50
51

PART 3. RECEIPTS
Analysis of receipts by source
Table 13. Sources of receipts

53
54
60

PART 4. THE FEDERAL PROGRAM BY FUNCTION

67

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

68
72
84
91
93
98
104
112
118
129
135
140
141
145

PART 5. THE FEDERAL PROGRAM BY AGENCY

11
6

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 President
Department of Ag iculture
Department of Commerce
Department of Defense—Military




162
166
166
179
182
186
192
210
227

3

THE

BUDGET

FOR

FISCAL

YEAR

196 7

PART 5. THE FEDERAL PROGRAM BY AGENCY—Continued
Analysis of new obligational authority and expenditures by agency—Continued
Department of Defense—Civil
Department of Health, Education, and Welfare
Department of Housing and Urban Development
Department of the Interior
Department of Justice
Department of Labor
Post Office Department
Department of State
Treasury Department
Atomic Energy Commission
Federal Aviation Agency
General Services Administration
National Aeronautics and Space Administration
Veterans Administration
Other independent agencies
District of Columbia
Special allowances
Trust funds
Memorandum—Annexed budgets

Page
240
244
265
272
291
295
301
303
308
316
316
318
323
324
327
349
351
352
372

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
Private participation in Federal credit programs

375
376
385
397
406
426

PART 7. HISTORICAL TABLES
Table 15. Administrative budget totals and public debt, 1789-1967
Table 16. Consolidated cash totals and Federal sector of the national income accounts,
1940-67
Table 17. Federal finances and the gross national product, 1940-67
Table 18. Administrative budget and trust fund receipts, 1956-67
Table 19. Administrative budget and trust expenditures by function, 1956-67
Table 20. Receipts from and payments to the public, 1956-67
Table 21. Federal receipts and expenditures in the national income accounts, 1956-67

429
430
431
432
433
434
439
440

INDEX

441

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.




PART 1

THE BUDGET MESSAGE




OF THE
PRESIDENT

THE BUDGET FOR FISCAL YEAR 1967
Composition of Administrative Budget Expenditures

1*0100-




Administrative Budget Expenditures as
a Percent of Gross National Product

BUDGET MESSAGE OF THE PRESIDENT
To the Congress of the United States:
With this message I transmit to you today the budget of the United
States of America for the fiscal year 1967.
A budget is not simply a schedule of financial accounts.
It is a program for action.
The program of the Federal Government which this budget recommends is grounded on these fundamental premises:
• In international affairs we are determined to seek peace with every
means at our command
—but we are fully prepared to meet the costs of opposing
aggression.
• In domestic affairs we are determined to press confidently forward
toward the Great Society
—but we shall do so in an orderly and responsible way, and at a
pace which reflects the claims of our commitments in Southeast
Asia upon the Nation's resources.
The budget for 1967 bears the strong imprint of the troubled world
we live in.
It provides the funds we now foresee as necessary to meet our commitments in Southeast Asia. If our efforts to secure an honorable
peace bear fruit, these funds need not be spent. Yet it would be folly
to present a budget which inadequately provided for the military and
economic costs of sustaining our forces in Vietnam. And those costs
are substantial.
In this setting I have sought to frame a balanced program.
• We are a rich nation and can afford to make progress at home
while meeting obligations abroad—in fact, we can afford no other
course if we are to remain strong. For this reason, I have not halted
progress in the new and vital Great Society programs in order to
finance the costs of our efforts in Southeast Asia.
• But even a prosperous nation cannot meet all its goals all at
once. For this reason, the rate of advance in the new programs has
been held below what might have been proposed in less troubled
times, many older and lower priority activities have been reduced
or eliminated, and economies have been sought in every operation of
the Government.




8

THE BUDGET FOR FISCAL YEAR 196 7

• At the same time, I want to insure that the necessary increase in
budget expenditures is so financed as to promote economic stability.
For this reason, I am proposing several tax measures designed to increase Federal revenues.
With this balanced program we can:
• Meet our international responsibilities with firmness.
• Maintain continued prosperity and economic stability at home.
• liaise the productivity, earnings, and living standards of our
poorer citizens.
• Improve the quality of life for all citizens.
• Preserve and protect our national resources for the generations
to come.
And we can achieve these ends without unduly straining our economic resources or impairing our steady economic expansion.
THE BUDGET AND ECONOMIC GROWTH
The unprecedented and uninterrupted economic growth of the past
5 years has clearly demonstrated the contribution that appropriate
fiscal action can make to national prosperity. Aided by the judicious
use of tax and expenditure policy, the Nation continues to benefit from
the longest period of sustained economic growth since the end of World
War I I .
With proper policies, this growth will extend through the current
calendar year and beyond. In calendar year 1966, the Nation's output of goods and services—the gross national product—is expected to
grow by $46 billion over 1965, reaching $722 billion, plus or minus
$5 billion. This increase will follow on the heels of last year's healthy
growth, when the real gross national product advanced by 5 ^ % .
During that year:
• Nearly 2 ^ million additional jobs were created.
• Countless new and previously idle plants and machines were drawn
into productive use.
• Consumer and business incomes reached record levels.
• The unemployment rate fell to 4.1%, the lowest in more than 8
years.
A growing economy provides rising Federal revenues and expanding economic resources both for meeting our military and international
commitments and for moving closer to our Great Society goals. But
this does not relieve us of the obligation to weigh expenditure decisions
carefully and carry them out efficiently. Inflation need not be the
price of social progress; nor should it be a cost of defending freedom.
Our fiscal and monetary policies must also be designed to help reduce
further the balance of payments deficit. During the past calendar
year, the deficit declined by more than half from the preceding year.




THE BUDGET MESSAGE OF THE PRESIDENT

9

Private banks and other businesses contributed significantly in a
variety of ways through voluntary programs announced last February.
In addition, the Federal Government has been eliminating or reducing
payments abroad wherever possible and consistent with essential program requirements. We will continue these efforts.
FISCAL PROGRAM

This budget presents a responsible fiscal program. It accommodates our foreign and domestic responsibilities in an environment
of strong but noninflationary economic growth.
The 1967 fiscal program consists of the following elements:
First, apart from the special costs of operations in Southeast Asia,
increases in Federal expenditures for high priority Great Society
programs and for unavoidable workload growth have been largely
offset by reductions in lower priority programs, management improvements, and other measures. As a consequence, total regular
administrative budget expenditures—i.e., outside of special Vietnam
costs—rise by only $0.6 billion between 1966 and 1967—and this increase is virtually the same amount as the congressional additions to
my 1965 pay proposals for military and civilian employees.
Second, I propose to supplement the expansion of Federal revenues
which is a consequence of economic growth by a series of tax measures
which will yield $1.2 billion in fiscal year 1966 and $4.8 billion in
1967 :
• A plan for improving the pay-as-you-go effectiveness of the
withholding system on personal income taxes.
• A corresponding plan to accelerate the transition of corporate income tax payments to a full pay-as-you-go basis.
• A temporary reinstatement of the excise taxes on passenger
automobiles and telephone service which were reduced at the beginning of this calendar year and deferral of the further reductions
scheduled in the future.
Third, the combined increase in revenues from economic growth and
from my tax proposals will amount to $11.0 billion in 1967. This is
substantially larger than the growth in administrative budget expenditures. In fact, it virtually covers the total special costs of operations in Vietnam as well as the small increase in regular budget
expenditures from 1966 to 1967.
Fourth, as a consequence, the overall 1967 deficit in the administrative budget is $1.8 billion, sharply lower than in 1966 and the smallest
deficit in 7 years, despite the added costs we are incurring in Southeast
Asia.




10

THE BUDGET FOR FISCAL YEAR 1967

Fifth, on a consolidated cash basis—which is the most comprehensive
measure of budget totals—the 1967 budget will show a surplus of $0.5
billion,
No one can firmly predict the course of events in Southeast Asia.
They depend not only upon our own actions but upon those of our adversaries. As a consequence, ultimate budgetary requirements could
be either higher or lower than amounts I am now requesting. Prior
experience shows that such estimates are extremely difficult to make.
During the Korean war, for example, actual military expenditures
fell substantially below the original budget estimate. The amounts
which I am presenting here reflect the best judgment which can be
made at this point in time.
Because of the uncertainties inherent in this situation, the 1967
budget is designed to provide flexibility of response to changing conditions. In the new programs authorized by Congress in the last
several years, we have an effective array of weapons to attack the
major domestic problems confronting the American people—in the
fields of health, education, poverty, housing, community development,
and beautification. The 1967 budget provides funds to press forward
vigorously with these new programs. But because of the costs of
maintaining our commitment in Vietnam, those funds are, in many
cases, less than the maximum authorized in the enabling legislation.
Should our efforts to find peace in Vietnam prevail, we can rapidly
adjust the budget to make even faster progress in the use of these new
programs for the solution of our domestic problems.
If, on other hand, events in Southeast Asia so develop that additional
funds are required, I will not hesitate to request the necessary sums.
And should that contingency arise, or should unforeseen inflationary
pressures develop, I will propose such fiscal actions as are appropriate
to maintain economic stability.
BUDGET SUMMARY
Administrative budget.—Administrative budget expenditures in the
fiscal year 1967 are estimated at $112.8 billion, an increase of $6.4
billion over 1966. Apart from the special military and economic
assistance costs in Vietnam, expenditures for the regular programs of
the Federal Government in 1967 are estimated at $102.3 billion, a
rise of $0.6 billion from 1966, only six-tenths of one percent.
Administrative budget receipts are also expected to increase in 1967,
to $111.0 billion. Of the $11.0 billion increase over 1966, $3.6
billion results from the tax measures I am proposing. Most of
the remainder results from the sound and orderly economic growth
expected for calendar year 1966,




11

THE BUDGET MESSAGE OF THE PRESIDENT

Excluding both special Vietnam costs and the recommended tax
measures, the 1967 administrative budget could have been in surplus.
When I urged the Congress to enact the Revenue Act of 1964,1 stated
that the growth in economic activity yielded by the tax reduction, in
combination with economy and efficiency in Government expenditures,
would lead to a balanced budget in a prosperous economy. Barring
the then unforeseen costs we are incurring in Southeast Asia, that forecast remains a correct one.
SUMMARY OF FEDERAL RECEIPTS AND PAYMENTS
[Fiscal years.

In billions]

Description

1965
actual

1966

1967

FEDERAL RECEIPTS
Administrative budget receipts

Trust fund receipts
Deduct: Intragovernmental transactions and other adjustments.
Total cash receipts from the public

Deduct: Loans, differences in coverage, and other adjustments. _
Add: Cash to accrual basis and other adjustments
National income account receipts—Federal sector

$93.1
31.0
4.4

$100.0
33.5

5.4

$111.0
41.6
7.1

119.7

128.2

145.5
.7
-2.6

1.0
.9
119.6

128.8

142.2

96.5
(96.4)

106.4
{101.7)

112.8
(102.3)

29.6
3.7

33.8
5.2

37.9
5.7

122.4
(122.3)

135.0
(130.3)

145.0
(134.5)

4.0

1.6
-.7

FEDERAL PAYMENTS
Administrative budget expenditures
Excluding special Vietnam costs

Trust fund expenditures (including Government-sponsored enterprises)
Deduct: Intragovernmental transactions and other adjustments. _
Total cash payments to the public.
Excluding special Vietnam costs..

Deduct: Loans, differences in coverage, and other adjustments. _
Add: Cash to accrual basis and other adjustments
National income account expenditures—Federal sector
Excluding special Vietnam costs

5.8
1.7
118.3
(118.2)

131.0
(126.3)

142.7
(132.2)

-3.4
-2.7

-6.4
-6.9
-2.2

-1.8

EXCESS OF RECEIPTS ( + ) OR PAYMENTS ( - )
Including special Vietnam costs:
Administrative budget
Receipts from and payments to the public
National income accounts—Federal sector




+1.2

+.5
-.5

12

THE BUDGET FOR FISCAL YEAR 1967

Consolidated cash statement.—The administrative budget does not
include a number of important Federal activities which are financed
through trust funds, such as social security, medical care for the
aged, and aid for highway construction. A more complete measure
of the Government's finances is the consolidated cash budget which
covers all of the Government's programs and transactions with the
public.
Total payments to the public on the consolidated cash basis are estimated at $145.0 billion in fiscal year 1967, an increase of $10.0 billion
over 1966. Excluding special Vietnam costs, cash payments are estimated to rise by $4.2 billion in 1967, primarily because of the recently
enacted hospital and medical insurance programs for the aged which
begin in 1967 and are being financed in large part by special taxes.
Total receipts from the public are estimated to be $145.5 billion in
1967, an increase of $17.4 billion over 1966. Of the total in 1967, $6.5
billion represents the yield from special trust fund taxes that were
recently enacted or are proposed in this budget.

so

. p P ^ ^ G ^ N o t ^ o l Po u t
rdc

Federal sector, national income accounts.—A third measure of Federal finance is based on the national income accounts. This concept
is designed to indicate the direct impact of Federal fiscal activity on
the economy. In this set of accounts, Federal receipts and expenditures, including trust fund transactions, are generally estimated on
an accrual rather than a cash basis. In addition, purely financial
transactions are excluded because they do not directly result in current output and income. Total Federal sector receipts and expenditures are estimated to show a deficit of $2.2 billion in 1966 and $0.5
billion in 1967.



13

THE BUDGET MESSAGE OF THE PRESIDENT

FEDERAL REVENUES
Since 1962, private demands for investment and consumption have
been stimulated by several major tax revisions. The stimulus resulting
from these tax changes has been the single strongest contributor to 5
full years of sustained economic growth. In the current year, private
wage earners and investors are benefiting from tax reductions totaling
$20 billion as a result of:
• The Revenue Act of 1962, highlighting an investment tax credit
for business.
• Liberalized depreciation allowances.
• The Revenue Act of 1964, providing a record cut in personal and
corporate income tax rates.
• The Excise Tax Act of 1965, authorizing a broad program to
abolish most Federal excise taxes and reduce others.
Despite this massive tax reduction, administrative budget receipts
under existing legislation are estimated to be about $21 billion greater
in 1966 than they were 5 years earlier in 1961. This increase is more
than double the increase during the previous 5 years, when there were
no significant tax cuts. Thus, we have a clear illustration of the direct
relationship between tax policies, economic growth, and Federal
revenues.
RECEIPTS FROM THE PUBLIC
[Fiscal years.

In billions]

Source

1965
actual

1966
estimate

1967
estimate

Administrative budget receipts:

Individual income taxes
Corporation income taxes
Excise taxes
Other
Total administrative budget receipts.

$48.8
25.5
10.9
7.9

$51.4
29.7
9.2
9.7

$56.2
34.4
8.9
11.5

93.1

100.0

111.0

16.9
3.1
3.7
2.2
1.8
.5
3.0

18.8
2.9
3.9
2.2
1.8
.5
3.4

24.3
2.9
4.4
2.2
2.0
.5
5.3

31.0

33.5

41.6

4.4

5.4

7.1

119.7

128.2

145.5

Trust fund receipts:

Employment taxes
Deposits by States, unemployment insuranceExcise taxes
Federal employees retirement system
Interest on trust fund investments
Veterans life insurance premiums
Other
Total trust fund receipts
Intragovernmental transactions and other adjustments (deduct) _
Total receipts from the public




14

THE BUDGET FOR FISCAL YEAR 1967

Tax policy, however, must be used flexibly. We must be equally prepared to employ it in restraint of an overly rapid economic expansion
as we were to use it as a stimulus to a lagging economy.
The current situation calls for a modest measure of fiscal restraint.
As a consequence, I am recommending a tax program which consists
primarily of desirable reforms in tax collection procedures, having
the effect of increasing revenues in the current and coming year. In
addition, I am proposing the deferral of certain scheduled excise tax
reductions.
Larger corporations are beginning the third step of a seven-stage
transition to a full pay-as-you-go system for corporate income taxes by
1970. I propose that this transition be accelerated this year and completed in 1967 to produce increased corporate tax collections of $1.0
billion and $3.2 billion, respectively.
Similarly, higher income individuals now find that withheld taxes
under the existing flat-rate system fail to cover the full tax liability
at the end of the year. Establishment of a graduated withholding
system will increase tax collections by $0.1 billion in fiscal 1966
and $0.4 billion in 1967, without a change in total personal tax
liabilities.
In the case of the self-employment social security tax, individuals
may now elect to make payments annually instead of quarterly. By
requiring these payments to be made quarterly, trust fund receipts will
be increased by $0.1 billion in both fiscal 1966 and fiscal 1967.
Together, these three changes in collection procedure will put higher
income individuals and corporations closer to the full pay-as-you-go
schedules which now apply to moderate and lower income wage earners.
However, it is desirable that the economic impact of these three collection speedup reforms should be supplemented by temporarily rescinding reductions in excise tax rates on automobiles and telephone
service which took effect in January of this year and by postponing the
reductions in rates on these items now scheduled to take place in the
future. Together these temporary tax measures will yield $0.1 billion in 1966 and $1.2 billion in 1967.
An increase in the payroll tax rate and wage base to finance higher
social security benefits and the new hospital insurance programs took
effect on January 1, 1966. A further increase in the rate will occur
on January 1, 1967, under existing law. These increases are expected
to provide additional trust fund receipts of $1.5 billion in fiscal year
1966 and $6.2 billion in 1967.
The nature of many government services is such that they should
be provided without any charge or with only a nominal charge. However, in certain cases when a Government program provides special
benefits or privileges to specific, identifiable individuals or businesses,
appropriate user charges should be initiated. To this end, legislation




THE BUDGET MESSAGE OF THE PRESIDENT

15

Federal Receipts
SBHIlon.

will be proposed when necessary, and equitable user charges will be
instituted administratively where authority exists to do so.
This budget proposes a number of new or increased charges, the
largest of which are in the transportation field. I again urge the
Congress to enact legislation so that the primary beneficiaries will
defray a larger part of the costs incurred by the Federal Government in
providing transportation facilities and services to these beneficiaries.
Increased highway user charges are essential for completing the
Interstate Highway System on a pay-as-you-go basis and for financing
certain additional activities of importance to highway travelers, such
as safety programs.
The users of the airways bear substantially less than the full cost
of the Government investments and services upon which they rely.
Accordingly, I am recommending an increase in the passenger ticket
tax, increased taxes on fuels used by general aviation, and a new tax
on air freight. Eeceipts from the fuel tax on general aviation which
now go into the highway trust fund should be retained in the general
fund.
The facilities of the inland waterways system, which have been
improved steadily by the Federal Government, presently are available
to general and commercial users free of charge. I propose that they
meet a portion of the cost of the system through a fuel tax.
NEW OBLIGATIONAL AUTHORITY
The recommendations in this budget will require $121.9 billion in
new obligational authority for fiscal year 1967 in the administrative




16

THE BUDGET FOR FISCAL YEAR

1967

budget. The special costs of Vietnam represent $9.1 billion of this
amount.
Of total new obligational authority:
• $106.3 billion requires action by the Congress this year.
• $15.6 billion represents permanent authorizations not requiring
further congressional action; the largest of these is for interest on
the public debt.
I n addition to the new obligational authority required for the
administrative budget, $42.6 billion will be available for the trust
funds in 1967, an increase of $7.5 billion from the estimate for 1966.
Most of this is in the form of automatically appropriated revenues
from special taxes.
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

1965

1966

1967

$93.6
1.6

$111.6
.6

$106.3
1.7

13.1
30.4

14.4
34.4

15.6
40.9

106.6
32.0

126.0
35.0

121.9
42.6

The total recommended for 1967 in the administrative budget is
$4.1 billion below the estimate for 1966. Most of this decrease—$3.5
billion—is in the Department of Defense (including military assistance) , reflecting the large supplemental appropriations requested for
1966 for financing special Southeast Asia costs.
New obligational authority in 1967 for all other agencies has been
held at or below the 1966 levels wherever possible. The total estimated
decline of $0.6 billion includes a number of significant changes in
the authority requested for individual agencies and programs.
Major decreases other than for the Department of Defense are:
• $1.8 billion for the Department of Agriculture.
• $163 million for the National Aeronautics and Space Administration.
• $110 million for the Federal Aviation Agency.
• $103 million for the Atomic Energy Commission.
Major increases are:
• $1.4 billion for the Department of Health, Education, and Welfare.
• $750 million for interest on the public debt.
• $316 million for the Office of Economic Opportunity.




THE BUDGET MESSAGE OF THE PRESIDENT

17

The administrative budget estimate for fiscal year 1966 includes
a recommended $15.8 billion in new obligational authority not
enacted to date. The special Vietnam supplemental represents
$12.8 billion of this total. Other supplemental funds will be required to finance legislation enacted last year for which no funds have
yet been provided, such as higher military and civilian pay and a
Teacher Corps to help in the education of underprivileged children.
Additional funds wTill also be needed for the Asian Development Bank
and for the new activities authorized by the Elementary and Secondary
Education Act of 1965 and the new hospital and medical insurance
programs for the aged. Finally, relatively uncontrollable veterans
benefits, public assistance grants, and disaster relief will require more
funds than provided by the Congress last year.
FEDERAL PROGRAMS AND EXPENDITURES
The programs proposed in this budget are designed to serve the
national interest to the full extent possible within an expenditure level
appropriate to the time.
Our military needs are heavy. But they have not led us to a shortsighted policy of abandoning the war on poverty, ignorance, blight,
and disease. We will continue to advance toward our goals for a
Great Society. This budget provides for a significant increase in
programs which attack urgent domestic problems.
To achieve better returns for the taxpayer's dollar, every Government activity has been subjected to exacting standards of necessity and
priority. Some have been redirected to increase the benefits they
produce, some have been reduced, and others have been eliminated.
Savings from these actions are permitting greater expansions in programs of more immediate urgency.
Over the 3 years—from fiscal 1964 to 1967—the structure of the
Federal budget will change substantially. Excluding special Vietnam
costs, total administrative budget expenditures for regular Federal
programs will rise by $4.6 billion, an increase of only l1/2% per year.
Within the total, however, expenditure trends among various programs are sharply different. Between 1964 and 1967, combined expenditures on major programs directed toward the aims of the Great
Society—
• in health
• in education
• in the war on poverty
• in manpower training
• in housing and community development
will rise by $6.2 billion. Unavoidable interest costs will rise by $2.1
billion. But expenditures on all other activities will decline by $3.7
billion.
200-000 0—66




2

18

THE BUDGET FOR FISCAL YEAR 1967
THE CHANGING FEDERAL BUDGET
[Fisca [ years.

In billions]

Administrative budget expenditures, excluding special
Vietnam costs
Description

1964
actual

1965
actual

1966
estimate

1967
estimate

Change,
1964 to
1967

Total

$10.8

$11.4

$12.1

$12.9

+$2.1

6.7
80.2

7.3
77.6

10.8
78.8

12.9
76.5

97.7

Interest.
_
Health, labor, education, housing and
community development, economic
opportunity program, and aid to the
needy
All other

96.4

101.7

102.3

+6.2
-3.7
+4.6

As we have moved forward with new programs to improve the
quality of life for all Americans, we have sought to reduce or eliminate
activities of lower priority, and to pursue every technique of modern
management which reduces governmental costs. The expenditure
trends since 1964 demonstrate anew what I have stated on many
occasions in the past:
• a compassionate Government need not be a profligate Government.
• concern for the needs and aspirations of people can go hand in
hand with responsibility and efficiency in the management of
the public's business.
Expenditure Changes 1 9 6 4 - 1 9 6 7 - Regular Bud3et

2001964 = 100
175-

Health, Labor, Education, Housing and Community Development,
Economic Opportunity Program, and A i d to the Needy

150-

IS5-

Alt Other I
75-

u
1964




1967

19

THE BUDGET MESSAGE OF THE PRESIDENT

The 1967 budget continues this approach. Net expenditures for
Great Society programs rise by $2.1 billion—reflecting a gross increase
of over $3 billion, partly offset by the substitution of private for
public credit in several of these programs; interest costs rise by $0.8
billion; while all other regular expenditures decrease by $2.3 billion.
During the course of the year, unforeseeable events may call for
prompt action by the Government. We will also want to act on
matters—such as developing a civil supersonic transport—for which
the amounts required cannot now be precisely estimated.
In addition, there are other matters—such as the pay and retirement
benefits of Federal civilian employees—which are under study and on
which decisions have not yet been reached. To make it clear that the
budget totals provide adequately for such situations, I have included
$500 million in new obligational authority and $350 million of
expenditures as an allowance for contingencies.
PAYMENTS TO THE PUBLIC
[Fiscal years.

In billions]

Function

1965

1967
:stimate

1966

Administrative budget expenditures:

$50.2
(50.1)
4.3
(4.3)
5.1
4.9
2.8
3.5
-.1
5.9
1.5
5.5

$56.6
(51.9)
3.9
(3.8)
5.6
4.3
2.9
3.2
.1
8.4
2.3
5.1

11.4
2.4

National defense

12.1

.9

.1
.6

$60.5
(50.2)
4.2
(4.0)
5.3
3.4
3.1
2.7
.1
10.0
2.8
5.7
12.9
2.6
.4
.7

96.5

106.4

112.8

(96.4)

(101.7)

(102.3)

Health, labor, and welfare
Commerce and transportation
Housing and community development.
National defense
Veterans benefits and services
Allother v
Interfund' transactions (deduct)

23.2
3.9

26.6
3.8
2.0
.9
.6

31.1

Total trust fund expenditures

29.6

33.8

37.9

3.7

5.2

5.7

122.4

135.0

145.0

(122.3)

(130.3)

(134.5)

Excluding special Vietnam costs

International affairs and finance
Excluding special Vietnam costs

Space research and technology
Agriculture and agricultural resources.
Natural resources
Commerce and transportation
Housing and community development _
Health, labor, and welfare
Education
Veterans benefits and services
I nterest
General government
Allowance for contingencies
Interfund transactions (deduct)
Total, administrative budget expenditures
Total, administrative budget, excluding special
costs

2.5

Vietnam

Trust fund expenditures:
1.1
.8

.6
.7
.6

Intragovernmental transactions and other adjustments (deduct).
Total payments to the public
Total payments to the public, excluding special
costs




3.9
1.2

.9
.7
.9

Vietnam

20

THE BUDGET FOR FISCAL YEAR

1967

The following are my major expenditure recommendations:
National defense.—Aggressive forces are now testing our will and
commitment to help a brave ally under attack. This Nation will
continue to seek a just settlement in Vietnam. At the same time,
we must provide the funds and forces required to sustain us until that
goal is reached. The 1967 budget meets those requirements as we now
see them.
The costs will not be light. Defense expenditures necessary to meet
the special requirements in Southeast Asia will amount to $4.6 billion
in 1966 and $10.3 billion in 1967. If early settlement is secured, many
of these expenditures need never be made. But prudence requires that
we budget for them at this time.
We must also continue to maintain defense forces equal to possible
challenges elsewhere. The funds recommended in this budget provide
for maintaining and improving the broad range of forces we need to
meet all our defense requirements.
In 1967, we will:
• Improve our strategic missile forces with additional Minuteman
I I and Polaris A-3 missiles, with further development of the Poseidon submarine-launched missile, and with initial procurement of
the Minuteman I I I missile to be delivered in future years.
• Initiate procurement of the new, high performance FB-111
to replace older, less effective bombers.
• Begin to purchase giant C-5A transport aircraft to increase
greatly our airlift capability.
• Begin to build a new nuclear-powered aircraft carrier—our second—to augment the Navy's general purpose forces.
• Add to the readiness, mobility, and staying power of our conventional war forces.
• Continue the vigorous research and development programs vital
to our continued ability to field the most modern and potent forces
in the world.
While meeting our requirements in Vietnam and bolstering our
forces, we must maintain our unrelenting efforts to operate our defense
establishment efficiently and economically. In 1967, we will continue
to weed out those forces and installations which have served their
purpose and which are no longer essential. The successful Defense
Cost Reduction Program will seek further savings. Moreover, because of the rising costs in Vietnam, we will defer certain programs
where this can be done without harm to our defense capabilities.




THE BUDGET MESSAGE OF THE PRESIDENT

21

These twin goals—insuring that we have the forces we need and
operating them at the lowest reasonable cost—will require an increase
of $4.0 billion in national defense outlays in 1967. In the absence of
the special costs of supporting our operations in South Vietnam,
however, defense expenditures would decline in 1967.
International affairs and finance.—As we meet the direct military
threat to freedom and security, we must also continue our pursuit of a
world at peace, in which:
• Freedom can thrive.
• Hunger and disease are no longer a common condition of life.
• Education is available to everyone.
• All people and nations prosper together.
The long-run security and the innate compassion of the American
people both call for policies which bring such a world closer.
The Congress and the public rightly demand that our assistance
programs be effective in achieving their objectives. In the past several months I have carefully reviewed these programs. As a result
of that review I am proposing the following steps:
First, I shall send to the Congress a special message proposing
major initiatives in international health and education. Healthy and
educated people are the most important resource a nation can possess.
Therefore, the 1967 budget provides for expanded activities in education and health as next steps toward a better world.
Second, I am proposing to expand and reorient our food and agricultural assistance to the hungry peoples of the developing countries.
We will emphasize assistance to the recipient countries in raising their
own agricultural production so that they may eventually lessen their
dependence on food aid from the United States. In this effort, increased economic aid for agricultural development will be closely
coordinated with a new Food for Peace program.
Increased expenditures of the Agency for International Development for activities in health, education, and agriculture are provided
within an economic assistance budget which, apart from special Vietnam costs, is no higher than in 1966.
Third, we will step up our efforts to encourage recipient nations to
take vigorous measures of self-help. Our economic assistance will
be provided to countries which are taking determined steps to help
themselves.




22

THE BUDGET FOR FISCAL YEAR 1967

Fourth, we will further concentrate our economic assistance efforts.
In 1967 almost two-thirds of expenditures by the Agency for International Development outside of South Vietnam will be in nine key
developing countries.
Fifth, to increase the effectiveness of our assistance, I am proposing
that the program be.authorized for a 5-year period.
My recommendations will be set forth in greater detail in other
messages.
We will carry forward our long-term commitment to the Alliance
for Progress. To this end, funds are included in this budget for
continued expansion of the resources of the Inter-American Development Bank's Fund for Special Operations. Our own Alliance activities are also being increased.
As part of a cooperative effort to promote economic development in
Asia, I will propose legislation to authorize the United States to
become a charter member of the Asian Development Bank. The
budget also includes funds to pay our share of the current replenishment of the resources of the International Development Association.
As soon as future needs and an appropriate sharing formula are determined, I will seek legislation to authorize additional contributions to
this highly successful affiliate of the World Bank.
This budget will also enable us to expand the Peace Corps, of
which we can be justly proud; to continue our overseas information
activities; and to maintain our firm support of the United Nations.
Space research and technology.—Just over 60 years ago, man
entered the age of controlled flight. Today, men orbit the earth at
speeds measured in thousands of miles an hour. In 1967, less than 6
years after this Nation set the goal of a manned landing on the moon
within the present decade, we will begin unmanned test flights of the
giant Saturn V rocket and the Apollo spacecraft—the complete space
vehicle required for achieving that goal. Later on in the 1960's, we
will undertake the manned lunar mission itself.
Our many space achievements—both manned and unmanned—have
dramatically advanced our scientific understanding and technological
capabilities. They have also clearly demonstrated our remarkable
progress in the peaceful exploration of space. In 1967, our large
space projects will be progressing from the more expensive development phase into operational status, and new projects of equivalent cost
will not be started. Accordingly, expenditures of the National Aeronautics and Space Administration are estimated to decline by $300
million in 1967. This level will sustain our progress in space exploration and continue the advancement of science and technology.




THE BUDGET MESSAGE OF THE PRESIDENT

23

Agriculture and agricultural resources.—Our increasingly efficient agricultural production is a bulwark of strength for the Nation.
It provides us with an ample supply of high quality food at home and
a large volume of commercial exports. It also allows us to assist the
economic development of other countries.
Our increasing productive efficiency, however, has not been fully
matched by new employment opportunities for rural people who are
no longer needed in farming and farm-related occupations. Consequently, large numbers of farmers and other rural people do not share
fully in the benefits of this increased efficiency.
To help eligible rural people and communities participate more
fully in all available Federal programs, the Department of Agriculture
is expanding its services to advise and inform them about these programs and to furnish information to other Federal agencies about
rural problems. The Department will also participate with other
agencies and local representatives in establishing pilot multi-county
development districts to coordinate the planning of programs to
improve rural life.
The Food and Agriculture Act of 1965 represents a milestone in
modernizing our farm commodity programs. Under this act, greater
emphasis will be given to direct payments to farmers. Moreover, the
Secretary of Agriculture will have more discretion in adapting farm
programs to new conditions. Nevertheless, we must explore new approaches to the problems of commercial farming and seek new ways
to adapt our programs for low-income people to rural conditions.
In November 1965,1 appointed a National Advisory Commission on
Food and Fiber and directed it to make a penetrating appraisal of all
aspects of agricultural policy and to report in 18 months. The Commission's recommendations, along with valuable experience under
the 1965 farm legislation and our general programs to help low-income
people, should provide a firm basis for further improvements in programs for agriculture and rural people.
Natural resources.—In developing and conserving our natural resources, we must always look ahead to the Nation's changing needs.
We must act now to meet the outdoor recreation needs of our growing population and to preserve our historic and scenic sites. I again
urge the Congress to authorize the national park, seashore, and lakeshore areas recommended in my message last year on Natural Beauty.
I also recommend legislation to establish a Kedwoods National Park
in northern California. With some of California's magnificent State
park lands as a nucleus and Federal acquisition of key adjoining lands,
a substantial area of the redwoods will be preserved for future
generations.




24

THE BUDGET FOR FISCAL YEAR 1967

Water is a worldwide concern. It is often not available in the proper
amount and quality, or at the time it is needed. Lack of water or poor
use of it can be a major deterrent to the growth of developing nations.
At my request, the Secretaries of the Interior and State, together with
other concerned agencies, are preparing a program to cooperate with
other nations in finding solutions to the world's water problems.
Future water supplies both at home and abroad can be greatly expanded by the economical conversion of sea and brackish water. The
Office of Saline Water, in conjunction with the Atomic Energy Commission and other agencies, is intensifying its research efforts on this
problem. The 1967 budget includes funds for the Office of Saline
Water to complete construction of an advanced distillation unit at the
west coast test center. This project will accelerate development of
large-scale economical processes for converting sea water to fresh
water.
The 1967 budget provides for starting construction on a number of
new water resources projects. These projects represent a national
investment in land, water, and power resources which will yield dividends for years to come.
Improved use of nuclear energy will assure a major source of economical power for the future. In working toward this objective, the
Atomic Energy Commission is intensifying its long-term program to
develop "fast breeder" nuclear power reactors which, by producing
more fuel than they consume, would greatly expand usable energy
resources.
Commerce and transportation.—In the year ahead, strong overall
economic growth will contribute importantly to the improvement of
conditions in the Nation's depressed areas. In addition, the 1967 budget
provides for an orderly expansion in Federal assistance for those areas.
The Public Works and Economic Development Act of 1965 has
given us new means for helping develop depressed areas throughout
the Nation. Loans, grants, and technical assistance will be provided.
The Federal Government will also offer special incentives in 1967 for
consolidating such areas into development districts better able to plan
and achieve economic expansion.
The special development program for the Appalachian region will
continue at a rapid pace. This unique Federal-State effort provides
new opportunities for the 17% million people of the region through
highway construction, natural resource development, and construction of needed public facilities.
The new Office of State Technical Services in the Department of
Commerce will be in its first full year of operation in 1967. This Office
will make grants to State and regional centers to provide the latest
scientific and technical findings to American business.




THE BUDGET MESSAGE OF THE PRESIDENT

25

An efficient and safe transportation system is essential to a nation
whose economy is growing, whose population is increasing, and
whose urban areas are expanding at a very rapid rate. Nearly onefifth of our annual gross national product is spent on transportation
of people and goods.
The Federal Government is not now organized to deal effectively
with this major segment of the American economy. Public programs
for research, promotion, and investment in transportation are scattered
among a host of Federal agencies. Where we need consolidation we
find fragmentation. I shall propose, in a later message to the Congress,
the creation of a new Department of Transportation to provide a
realistic and consistent approach to the Nation's transportation
problems.
There is no single statistic of American life more shocking than the
toll of dead and injured on our highways. Each day we kill 135 of
our fellow citizens—each year we injure 3 million more. I will shortly
recommend to the Congress a major new highway safety program providing for the reorganization and centralization of the Federal Government's highway safety activities and a sharp expansion of their
scope. The program will give particular attention to comprehensive
research into the causes and prevention of highway accidents and to
cooperative efforts with State and local governments in strengthening
accident-prevention programs.
We will continue to give special attention to the transportation
problems facing our growing cities and metropolitan areas. Research
and demonstrations to improve intercity high speed ground transportation and urban mass transit will be actively pursued next year.
During the past year progress made by industry on the development
of a civil supersonic transport aircraft has been promising. I will
therefore propose to the Congress a joint Government-industry program to build the prototype of a safe and commercially profitable
supersonic airplane.
Housing and community development.—During its last session,
the Congress passed two far-reaching acts that greatly improve our
ability to solve the problems of:
• Providing good housing for those who cannot now afford it.
• Restoring the central cores of the cities.
• Achieving a rational pattern of growth in metropolitan areas.
The Housing and Urban Development Act of 1965 is the most important piece of substantive legislation for the American city since
the Housing Act of 1949. The act creating the Department of Housing and Urban Development will enable the Government to launch
a coordinated attack on the problems of housing and the city.




26

THE BUDGET FOR FISCAL YEAR 1967

The new programs authorized, by the 1965 legislation must be
effectively carried out. Accordingly, this budget provides funds for :
• Maximum use of existing housing in the low-rent public housing
program.
• Well-planned water and sewer systems.
• Beautification of our cities.
• Facilities to house social services and recreation in lower income
neighborhoods.
The 1967 budget also provides for full use of the rent supplement
program. I ask that the Congress immediately take the action needed
to start this necessary program.
Federal aid will be approved in 1967 for over 160,000 additional
housing units for low- and moderate-income families and elderly individuals. Progress will continue on restoring older areas of cities, and
greater emphasis will be given to rehabilitation and provision of land
for housing that most people can afford.
Public actions to improve poor housing conditions, to upgrade deteriorating neighborhoods, and to tackle the social blight associated with
slums too often have not worked to support each other's objectives.
The leadership resources of private business, civic, and labor organizations have not been fully utilized in formulating and carrying out
the actions needed to preserve for all citizens the human dimensions
of city life. I am requesting legislation authorizing assistance to
qualifying cities across the Nation to show how complex and intertwined urban problems can be effectively attacked on a large scale
through the coordinated use of local, State, and Federal programs.
I again urge the Congress to grant home rule to the District of
Columbia so that its citizens may exercise the right of self-government
enjoyed by other Americans.
Health, labor, and welfare.—Outside of defense, the Federal Government's largest outlays are devoted to improving the Nation's health,
protecting workers and their families against loss of income, and
assisting the disadvantaged to overcome poverty and unemployment.
Last year, the Congress enacted more than a score of major bills
which will advance us toward the goal of a better and more secure life
for our citizens. This was an unsurpassed achievement. However,
there are still a number of important gaps which we should begin now
to fill.
Health.—Last year, the enactment of Medicare marked a milestone in
the social history of the United States. To make that legislation effective and to assure that the American people have access to high quality
medical care at reasonable costs, we need to concentrate our efforts on
the provision of adequate medical facilities and manpower. The 1967
budget is designed to that end. Increased funds are made available




THE BUDGET MESSAGE OF THE PRESIDENT

27

under legislation enacted last year to help educate more doctors,
dentists, nurses, and graduate public health personnel. Funds are
also provided for newly enacted programs to increase the number of
community mental health centers and help support their staff. I
shall propose legislation to assist our communities in modernizing and
replacing older hospitals. Similarly, legislation should be enacted
to extend training assistance to medical assistants and other health
personnel not now eligible.
Apart from Medicare and other programs I have already mentioned,
the impressive listing of health measures passed last year and financed
in this budget includes:
• Regional medical programs to provide up-to-date diagnosis and
treatment for heart disease, cancer, stroke, and related diseases.
• Comprehensive medical treatment and care for preschool and
school age needy children in selected areas of low income.
• Increased efforts to safeguard and purify the air we breathe.
• Improvements in vocational rehabilitation so that over 200,000
disabled or handicapped people can return to productive work.
Pollution control.—Clean and sparkling rivers ought to be a part of
every American's environment. I intend to propose a new and expanded program to combat the problem of polluted water. This program will call for the improved enforcement authority needed to conquer pollution. It will also provide for large-scale cooperative efforts
of Federal, State, and local governments to show how pollution can
be eliminated throughout entire river basins.
Labor.—I urge enactment of legislation to:
• Provide long-needed improvements in our unemployment compensation system.
• Repeal Section 14 (b) of the Taft-Hartley Act.
• Increase the minimum wage and extend protection of the Fair
Labor Standards Act to over 5 million more workers.
Activities under the Manpower Development and Training Act of
1962 will be reoriented in 1967 to place more emphasis on the training
of persons who now have little or no skill. Special attention will also
be given to training for skills in particularly short supply. Not only
will this raise the earnings of the poor, but it will increase the availability of productive labor to meet the demands of our expanding
economy.
Economic opportunity programs.—The war on poverty launched in
1965 will continue to help low-income people develop the skills and
abilities needed for them to break out of the cycle of poverty handed
down from one generation to the next. The budget will increase this
program to reach individuals whom even full prosperity does not
touch.




28

THE BUDGET FOR FISCAL YEAR 196 7

In 1967, community action programs will be in effect in 900 communities, making a concerted attack on the poverty in their midst.
The Head Start preschool program, the Neighborhood Youth Corps,
and the Job Corps will again help at least 1 million children and
youths. Work experience, adult literacy, small business loans, and
special employment projects will help over 250,000 adults.
Other aids to the needy.—I intend to propose legislation to:
• Strengthen programs giving assistance to unemployed parents of
needy children by providing work experience, services, and training
to equip them for regular employment.
• Improve the nutrition of needy children.
Older programs will be redirected, shifting more of their resources
to helping the disadvantaged:
• The school lunch and special milk programs will focus more on
needy children, helping to provide them with adequate and wellbalanced meals.
• The public assistance program will provide more financial aid and
better medical care to families with dependent children.
• The Federal-State vocational rehabilitation program will enroll
more handicapped persons who are receiving public assistance.
Payments for Health, Labor, Welfare,and Education
$BiIlio«

Trust Fund Expenditures,
Mainly Social Security

-10

10 i

1956 1957
Fiwal Year* .




1956

THE BUDGET MESSAGE OF THE PRESIDENT

29

Education.—There is no greater challenge than that of providing
our children and youth with the opportunity to develop fully their
talents and interests. Education is vital to the achievement of a Great
Society and is our major weapon in the war on poverty.
The 89th Congress has made education history. It has truly opened
the doors of opportunity to preschool, elementary, secondary, and
college education for millions of our young people. The Elementary
and Secondary Education Act of 1965 and the Higher Education Act
of 1965 will benefit this generation and clear the way to greater opportunity for future generations.
This budget reflects the added Federal responsibility for improving
our Nation's educational system. The expenditures proposed for 1967
are more than 85% above the 1965 level. In 1967 this will make
possible:
• An increase of $905 million in expenditures for school aid under
the Elementary and Secondary Education Act of 1965, mostly for
grants to improve the education of more than 7.5 million disadvantaged children.
• A Teacher Corps of more than 3,700 members to serve in schools
with large numbers of children from low-income families.
• Scholarships, loans, and part-time work for well over one million
college students, 3 times the number in 1965.
• Commitments exceeding $1 billion for loans and grants to help
more than 1,300 colleges build needed academic and college housing
facilities.
We should continue to build upon the programs to enlarge educational opportunity and improve the quality of teaching. The Elementary and Secondary Education Act of 1965 should be extended beyond
June 30,1966, and improved. To increase its effectiveness, the income
criterion for allocating funds for fiscal year 1968 should be raised
from $2,000 to $3,000 and the incentive grant provision should be
dropped.
Veterans benefits and services.—The Nation properly provides
special help to those who suffer disabilities while in the service of our
country; this help is extended through programs of income maintenance, vocational rehabilitation, and medical care. We also have a
continuing obligation to the widows and children of those who have
died in performing military service.
The first session of the 89th Congress recognized both of these basic
trusts by:
• Increasing disability compensation payments.
• Liberalizing vocational rehabilitation benefits.
• Affording more generous allowances for children receiving educational aid under the War Orphans Act.
• Providing a new program of insurance coverage for men in our
uniformed services.



30

THE BUDGET FOR FISCAL YEAR 1967

We are currently engaged in armed conflict and have called upon
the youth of our Nation to serve in that conflict. We should develop
and expand programs to ease their readjustment to civilian life by
providing education and training assistance.
The 1967 budget also provides for further improvements in the high
quality of medical care administered in VA hospitals. New services
will continue to be added to bring to veterans the latest advances of
medical science.
Veterans programs should continue to emphasize the needs of the
service-disabled. All veterans and their families are, of course, eligible to participate in the steadily improving general health, education,
and welfare programs provided by the Government for all citizens.
General government.—Action by the Congress is urgently needed
in several different areas of governmental responsibility.
In recent years, we have made giant strides toward the goal of
equal rights for all citizens. We still have far to go. To guarantee
equal protection to individuals and to minorities under the law, there
are clear and positive additional legislative actions which must be
taken. I will shortly recommend such actions to the Congress.
A Great Society cannot be marked by rising crime rates. Americans,
rich and poor, are as one on this. In 1965, I proposed and the Congress enacted the Law Enforcement Assistance Act. Under that program Federal, State, local, and private institutions can work together to:
• Improve training of law enforcement personnel.
• Promote research and spread information on law enforcement
and correctional techniques.
• Strengthen the administration of justice.
The 1967 budget provides for an 89% increase in the funds allotted
to this program.
I am determined to take whatever further steps are necessary to
combat crime. I will propose to the Congress additional legislation
to meet that objective.
The stockpile of strategic and critical materials will be reduced
further in 1967 as we continue to dispose of materials excess to our
long-term needs. To permit management improvements and reduce
costs, legislation should be enacted to consolidate inventories and
facilitate disposals from the stockpile.
PUBLIC DEBT
The size of the public debt varies from year to year primarily as
a result of the Government's surplus or deficit. Based on the estimates
of receipts and expenditures in this budget, the debt on June 30,1966,
will be $320.0 billion. On June 30, 1967, it will have risen to $321.7
billion.




31

THE BUDGET MESSAGE OF THE PRESIDENT
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]
1964

1965

1966

1967

$60.7
251.8

$63.0
254.8

$64.9
255.1

$69.9
251.8

312.5

317.9

320.0

321.7

Note.— For further details see table 11 in part 2 of this document.

Present law provides a temporary debt limit of $328 billion until
June 30, 1966. After that date—if no action is taken—the limit will
revert to the permanent ceiling of $285 billion. It is necessary, therefore, that the ceiling for the period after June 30,1966, be raised.
A workable debt limit should allow for two factors in addition to
the estimated size of the debt at the end of fiscal year 1967:
• Seasonal fluctuations in the size of the debt.
• The need for flexibility in managing the debt.
The first is necessary to allow for periods when the debt will exceed
the end-of-year total. This results from the seasonal pattern of receipts, which are lower in the first half of the fiscal year.
Adequate provision for flexibility will permit the Treasury to take
full advantage of favorable market conditions and thus avoid unnecessary interest costs.




32

THE BUDGET FOR FISCAL YEAR 196 7

IMPROVING GOVERNMENT MANAGEMENT
As a Nation we have much to do. We have the will. We have the
resources. But we must conserve these resources, investing them
wisely. We dare not waste them.
This calls for improved Government organization, better programing, cost reduction, and effective employment policies. I intend shortly
to present the Congress with a number of proposals designed to accomplish these objectives.
Government organization.—In moving toward the goals of the
Great Society, the enactment of substantive legislation is only the first
step. The 89th Congress has, through its accomplishments to date,
provided the basis for advancing in such critical areas as civil
rights, economic opportunity, medical care for our older citizens,
improvement of our cities, and regional development.
However, if these laws are to produce the desired results—effectively
and at minimum cost to the taxpayer—we cannot afford to cling to
organizational and administrative arrangements which have not kept
pace with our changing needs.
Government organization must provide for fast and flexible response
to new problems and conditions. We must be as bold and imaginative
in reshaping and modernizing the executive branch as we have been in
devising new programs. A structure designed in major part to carry
out programs and policies of the 1950's and earlier years will not give
us the organization we need as we move toward the 1970's. I will propose shortly to the Congress a series of reorganization measures which
will enable the Government to manage its business more effectively.
Federal, State, and local coordination.—Many of our critical new
programs involve the Federal Government in joint ventures with
State and local governments in thousands of communities throughout
the Nation. The success or failure of those programs depends largely
on timely and effective communications and on readiness for action on
the part of both Federal agencies in the field and State and local governmental units. We must strengthen the coordination of Federal
programs in the field. We must open channels of responsibility. We
must give more freedom of action and judgment to the people on the
firing line. We must help State and local governments to deal more
effectively with Federal agencies. We must see that information gets
to the field and to cooperating State and local governments, promptly
and accurately.
I intend to see to it that this dimension of the new public management receives major attention and action in the coming year.




THE BUDGET MESSAGE OF THE PRESIDENT

33

Planning-programing-budgeting
system.—I have directed the
executive branch to develop and introduce a new planning-programing-budgeting system which will incorporate the most modern management techniques now used in government and industry. This
system will enable us to:
• Be more concrete and precise about the objectives of our programs.
• Examine longer term problems and consequences more systematically.
• Consider more alternatives before reaching decisions.
• Link our planning efforts more directly to budget decisions.
• Get more effectiveness for the dollars we spend.
• Provide more benefits to the American people in more economical
ways.
During the next year, I expect to see much progress made in this
system with results that will be reflected in the budget for fiscal year
1968.
Substitution of private for public credit.—In recent budgets, I
have pressed for the encouragement of private financing in the major
Federal credit programs wherever I have felt it to be consistent with
the public interest. I will need the cooperation of the Congress to
carry this effort still farther in the coming year.
This is an important and sensible way to manage our Federal credit
programs. I, therefore, urge prompt action on legislation being proposed to authorize a considerable expansion in the sale of participations in Government loans. The budget assumes its enactment. With
the authority provided by such legislation, my budget proposals for
encouraging the substitution of private for public credit will reduce
1967 expenditures by $4.7 billion from what they would have been
otherwise.
Automatic data processing.—The Federal Government has obtained great benefits from the use of electronic computers. With the
direct annual cost of acquiring and operating this equipment now in the
range of $2 billion, I intend to make sure that this huge investment
is managed efficiently—through such means as research, equipment
sharing, careful purchasing, and coordinated Government-wide utilization policies.
Cost reduction.—During the past 2 years, I have not ceased to demand an exacting standard of cost-consciousness in every department
and bureau of the executive branch. I believe neither in padded
budgets nor in lax habits of organization and management. Every
dollar of expenditure must produce results. I expect each Government employee to spend the public dollar with the same care and concern he would exercise if it came out of his own paycheck.
200-000 0—66




3

34

THE BUDGET FOR FISCAL YEAR 1967

In preparing this budget, all existing programs have been reexamined closely. Wherever a program could be cut back on grounds
of less priority, I have cut it. Despite the appeal of many of these
programs to affected groups, I urge the Congress not to restore them
to their previous levels.
There are many ways to reduce costs and eliminate unnecessary
spending:
• By curtailing or eliminating activities of declining importance.
• By closing marginal branch offices or installations.
• By pooling common services.
• By simplifying organization.
• By increasing productivity.
• By installing up-to-date systems and equipment.
• By interagency coordination of plans and operations.
• By stringent budgetary reviews.
Last March, I set in operation a Government-wide, formal program
for systematic cost reduction in which each agency must identify
savings goals for the year ahead and report to me on actual results.
This program is working.
Agencies have identified specific savings in 1965 and 1966. Additional savings will be made in 1967. Altogether, the civilian cost
reduction program will reduce the costs of operating the Government
by some $1 billion in each of the fiscal years 1966 and 1967.
The Department of Defense accomplished $4.8 billion of savings in
fiscal year 1965, and the annual rate of savings in that Department is
expected to exceed $6 billion in 1969.
No agency, regardless of size or importance, is exempted from the
duty to save the taxpayer's money by better management and alert
business methods.
One of the most gratifying developments to come to my attention is
the remarkable progress of Government agencies in improving productivity. With workloads increasing in nearly every category of Government activity, the only way to restrain mounting Federal employment
is by persistent management improvement and higher productivity.
These are just a few of the changes in productivity which are reflected
in this budget:
• The Social Security Administration is achieving a productivity
gain of 21/£% by automating the recomputation of benefits, with a
saving of 1,742 man-years and $12.4 million.
• The Post Office Department's budget reflects an increase in mail
processing productivity of 1.4%, resulting in a saving of 3,900 manyears and $23 million.




THE BUDGET MESSAGE OF THE PRESIDENT

35

• The Federal Aviation Agency is increasing productivity by 5% in
airways facilities operation and maintenance, thus absorbing nearly
all the workload increase resulting from the growth in aviation
activity, with a budget saving of almost $4 million.
• By using advanced medical techniques, the Veterans Administration has been able to reduce the duration of patient stay in its
hospitals. In 1967, about. 1% more patients can be accommodated
than in 1966. This means that the same number of beds operated
in 1966 will take care of 7,000 more patients in 1967.
These actions are the result of tireless effort by many officials and
employees of the Federal Government. It is often harder work to
save money than to find productive ways to spend it. But it is equally
important to the public interest.
I believe we are making good progress in reducing costs and improving efficiency, but I will never be satisfied that we have done all we
should. I expect the top officials of every department and agency to
press hard in the coming year to do still better—and not only in headquarters operations. Only 10% of all Federal employees are in Washington—most of our employees and operations are spread throughout
the 50 States and oveaseas. I intend to stress particularly this year the
urgency of management improvement and better public service in the
field establishment of the Federal Government.
CONCLUSION

This Nation has committed itself to help defend South Vietnam
against aggression. We are determined to fulfill that commitment.
This Nation has also committed itself to a major effort to provide
better economic, social, and cultural opportunities for all Americans.
We are also determined to fulfill this commitment.
Both of these commitments involve great costs. They are costs we
can and will meet.
The objectives we are seeking are interdependent.
We cannot fight for peace and freedom in Vietnam, wThile sacrificing
individual dignity and opportunity at home. For it would be a
hollow victory if our pursuit of world peace were carried out at the
expense of domestic progress.
Yet we must also recognize that a truly Great Society looks beyond
its own borders. The freedom, health, and prosperity of all mankind
are its proper concern.
The struggle in Vietnam must be supported. The advance toward a
Great Society at home must continue unabated.
This budget provides the means for both these goals.
I urge the support of Congress and all Americans for its principles
and its programs.
LYNDON B. JOHNSON.
JANUARY 24,




1966.




PART 2

SUMMARY TABLES

37




Year 1967 EiHmat*

39

SUMMARY TABLES
Table 1. BUDGET RESUME (in billions of dollars)

ADMINISTRATIVE BUDGET AND TRUST FUND RECEIPTS AND EXPENDITURES
ADMINISTRATIVE
BUDGET FUNDS

Description

1965
actual

TRUST FUNDS

1966
1967
estimate estimate

1965
actual

1967
1966
estimate estimate

RECEIPTS

48.8
25.5

51.4
29.7

56.2
34.4

10.9

9.2

8.9

8.8
-.9

10.4
-.6

93.1

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
Deposit funds (net)
Allowance for contingencies
Interfund transactions _
Total expenditures
Excess of receipts ( + )
tures (—)

Individual income taxes _
Corporation income taxes _ _ _ _
Employment taxes _ _
Excise taxes. _ __ __ _
Unemployment tax deposits by States..
Other receipts
Interfund transactions
__

18.8
3.9
2.9
8.8
-.8

24.3
4.4
2.9
10.8
-.8

100.0

111.0

31.0

33.5

41.6

50.2
4.3
5.1
4.9
2.8
3.5
1
5.9
1.5
5.5
11.4
2.4

56.6
3.9
5.6
4.3
2.9
3.2
.1
8.4
2.3
5.1
12.1
2.5

60.5
4.2
5.3
3.4
3.1
2.7
.1
10.0
2.8
5.7
12.9
2.6

.8
-.2
*
.9
.1
3.9
1.1
23.2
*
.6

.9
.1
*
.6
.1
3.9
1.2
31.1
*
.7

-.9

.1
-.6

.4
-.7

*
-.2

.9
.2
*
.6
.1
3.8
2.0
26.6
*
.6
*
-.2

-.6

-.8

-.8

96.5

Total receipts

12.2
-.7

16.9
3.7
3.1
8.1
-.6

106.4

112.8

29.6

33.8

37.9

-3.4

-6.4

-1.8

+1.4

-.2

+3.7

EXPENDITURES

or expendi-

*
*

CONSOLIDATED SUMMARY
1965
actual

Description

Cash receipts:
Administrative budget receipts. _ _ _ _
Trust fund receipts. _ _ _ _
Intragovernmentafand other noncash transactions
Total receipts from the public. _ _

__
_______

1966
estimate

1967
estimate

93.1
31.0
-4.4
119.7

100.0
33.5
-5.4
128.2

111.0
41.6
-7.1
145.5

96.5
29.6
-3.7
122.4
-2.7

106.4
33.8
-5.2
135.0
-6.9

112.8
37.9
-5.7
145.0

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. __

+.5

N o t e . — For explanation of administrative budget funds and trust funds, see page 164. For details
on receipts, see table 13 on pages 60 to 66. For details on expenditures, see table 14 on pages 145 to
159; for further detail, by agency and account, see pages 168 to 375.
*Less than $50 million.




40

THE BUDGET FOR FISCAL YEAR 1967
Table 2. RECEIPTS FROM AND PAYMENTS TO THE PUBLIC
(CONSOLIDATED CASH BASIS) (in billions of dollars)
Description

1965
actual

1966
estimate

1967
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

48.8
25.5
16.9
14.6
3.1
2.7

51.4
29.7
18.8
13.0
2.9
2.9

56.2
34.4
24.3
13.3
2.9
3.3

1.4
.5
6.3

1.7

1.8

.5
7.2

.5

119.7

128.2

145.5

50.8
4.6
5.1
5.4
2.8
7.4
.9

57.4
4.1
5.6
4.6
2.9
7.0
2.0
34.1
2.3
5.6
9.3
2.4

61.4
4.4
5.3
3.6
3.0
6.6
1.2

PAYMENTS TO THE PUBLIC
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
Deposit funds (net)
Allowance for contingencies
Other undistributed adjustments:
Agency payments for employee retirement
Deduction 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

28.3
1.5
6.1
8.6
2.3
-.2

39.3
2.8
6.4

-.2
.1

10.2
2.5
*
.4

.9

-1.1
-1.1
-.1

-1.1
-1.1
.1

122.4

135.0

145.0

-2.7

-6.9

+.5

-1.0
-1.0

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 (pp. 378 to 386).
*Less than $50 million.




41

SUMMARY TABLES

Table 3. NEW OBLIGATIONAL AUTHORITY BY TYPE AND FUNCTION
(in billions of dollars)

Description

ADMINISTRATIVE
BUDGET FUNDS
1965
actual

1966

1967

TRUST FUNDS

1965

1966

1967

TYPE
Authorizations requiring current action by
Congress:
Appropriations 1
Reappropriations
Authorizations to spend debt receipts
Contract authorizations.

91.7
*
.6
1.2

109.5
*
.9
1.2

106.4

0.6

0.5

0.6

-.4
.2

1.1

.1

1.1

Total authorizations requiring current action by Congress

93.6

111.6

106.3

1.6

.6

1.7

12.2
.5
.4

12.9
*
1.5

13.8
.9
1.0

26.7
.1
3.6

29.0
.3
5.2

36.4
.1
4.3

13.1

14.4

15.6

30.4

34.4

40.9

106.6

126.0

121.9

32.0

35.0

42.6

53.2
6.7
5.2
4.3
3.0
3.3
1.3
7.5
2.4
5.8
11.4
2.5

65.8
5.5
5.2
5.9
3.1
3.9
1.8
9.7
4.3
6.0
12.1
2.6
.1

62.2
5.2
5.0
4.2
3.1
3.4
1.6
11.0
4.2
6.1
12.9
2.6
.5

.8
*
*
*
.2
3.9
.5
25.8
*
.7

1.1
.2
*
*
.2
4.1
.7
28.0

1.2
*
*
.2
4.4
.6
35.4

*
.7

*
.7

*

*

*

106.6

126.0

121.9

32.0

Authorizations not requiring current ac*>
tion by Congress (permanent):
Appropriations *
Authorizations to spend debt receipts. __
Contract authorizations _ _ _
Total authorizations not requiring
current action by Congress
(permanent). _ _ _ _ _
Total new obligational authority
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
Allowance for contingencies
_ __
Total new obligational authority

35.0

*

42.6

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 164 and 165. For detailed information on new obligational authority
by agency and account, see pages 168 to 375.
* Less than $50 million.
1
xcludes
Excludes appropriations to liquidate contract authorizations:
funds, 1965, $1.8
1966, $2.2
Administrative budget funds 1965 $18 billion; 1966 $22 billion; 1967, $2.5 billion.
Trust funds, 1965, $4.7 billion; 1966, $4.8 billion; 1967, $5.0 billion.




42

THE BUDGET FOR FISCAL YEAR 196 7

Table 4. NEW OBLIGATIONAL AUTHORITY BY AGENCY (in millions of dollars)
1966 estimate
Description

1965
enacted

SuppleEnacted mental
needed

1967 estimate
Total

Transmitted
herein

3
2
*

261
85
27

239
93
31

610

45
5

6,331
8,430
1,096

5,617
6,993
1,275

13,209
25

61,838
1,405

58,938
1,358

1,113

10,358

11,654

60

11,714

27
-30
8

1,988
1,397
388
704
930
403
13,542
2,366
868
594

2,173
1,432
405
696
836
402
14,299
2,263
758
628

-738
-42

1,435
1,390
405
673
836
402
14,299
2,263
758
628

5,175
6,002
1,593
101
100

5,012
5,960
1,373

Later
transmittal

Total

ADMINISTRATIVE
BUDGET FUNDS
Legislative Branch
258
171
The Judiciary
82
76
Executive Office of the President.
27
26
Funds appropriated to the
President
5,835
5,721
Department of Agriculture
7,433
8,385
1,092
Department of Commerce
1,007
Department of Defense—
49,363 48,629
Military
Department of Defense—Civil.. 1,318
1,380
Department of Health, Education, and Welfare
9,244
7,131
Department of Housing and
1,960
1,450
Urban Development
1,427
1,335
Department of the Interior
380
Department of Justice
385
704
668
Department of Labor
674
781
Post Office Department
401
396
Department of State
12,802 13,514
Treasury Department
2,366
2,625
Atomic Energy Commission
727
859
Federal Aviation Agency
588
617
General Services Administration.
National Aeronautics and Space
5,250
5,175
Administration
5,690
5,792
Veterans Administration
1,572
1,303
Other independent agencies
95
118
District of Columbia
Allowance for contingencies
Total administrative
budget

106,608 110,225

255
2
28

312
21
6
100

239
93
31
20
-378
-132

58,938
1,358

-23

10
0
23
500

15,757 125,982 122,514

5,637
6,615
1,143

5,012
6,060
1,373
104
500

-609 121,904

TRUST FUNDS
Department of Commerce
Department of Health, Education, and Welfare
Department of Labor
Veterans Administration
Civil Service Commission
Railroad Retirement Board
Other agencies

3,907

4,118

4,118

4,078

17,684
4,132
712
2,664
1,337
1,566

19,891
3,910
723
2,770
1,419
2,210

19,891
3,910
723
2,770
1,419
2,217

27,058
3,946
724
2,851
1,584
2,078

Total trust funds.

32,002

35,041

35,048

42,320

283
-23

4,361
27,058
3,923
724
2,851
1,584
2,082

2 5 42,584
6

Note,—For explanation of the columnar headings for 1966 and 1967, see pages 166 and 167.
For detailed information on new obligational authority by agency and account, see pages 168 to 375.
*Less than $500 thousand.




43

SUMMARY TABLES
Table 5. EXPENDITURES BY AGENCY (in millions of dollars)
1967 estimate

1966 estimate
Description

1965

actual

Supple-

Enacted mental

Total

needed

Transmitted
herein

Later
transmittal

Total

ADMINISTRATIVE
BUDGET FUNDS
Legislative Branch
165
The Judiciary
75
Executive Office of the President.
24
Funds appropriated to the President
4,307
Department of Agriculture
7,298
Department of Commerce
758
Department of Defense—Military
46,173
Department of Defense—Civil__. 1,234
Department of Health, Education, and Welfare
5,740
Department of Housing and
250
Urban Development
Department of the Interior
1,205
358
Department of Justice
480
Department of Labor
Post Office Department
805
Department of State
383
12,730
Treasury Department
2,625
Atomic Energy Commission
795
Federal Aviation Agency
622
General Services Administration.
National Aeronautics and Space
5,093
Administration
5,488
Veterans Administration
708
Other independent agencies
61
District of Columbia
Allowance for contingencies
Subtotal
Interfund transactionsTotal administrative
budget

189
82
28

3
2
*

191
84
29

205
93
31

*
*
*

205
93
31

4,498
7,053
804

370
-164
4

4,868
6,889

4,638
6,610
1,033

390
-812
-110

5,028
5,798
923

48,236
1,311

4,689
4

52,925
1,314

53,000
1,361

4,150
9

57,150
1,369

7,100

562

7,662

10,076

115

10,191

416
1,,293
377
520
635
406
13,402
2,390
791
592

21
-51
7
2
243
2
28

436
1,242
384
522
878
407
13,429
2,390
800
598

-1,503
-66
1
-17
12

-414
1,322
405
522
755
405
14,247
2,300
840
633

5,600
4,866
632
59

97,377 101,279
-870
96,507

311
-331
6
75

5,600
5,177
301
65
75

5,797 107,075
-647

1,388
404
539
742
405
14,247
2,300
839
633-

5,300
5/628
656

1,305

91
-381
23
350

5,300
5,718
275
111
350

2,254 113,559
-712
112,847

106,428

TRUST FUNDS
10
1

4,127

Department of Commerce
Department of Health, Education, and Welfare
Department of Labor
Veterans Administration
Civil Service Commission
Railroad Retirement Board
Other agencies

4,047

4,008

4,008

4,017

17,460
3,130
617
1,402
1,185
2,435

20,833
2,890
547
1,608
1,239
3,439

20,841
2,891
547
1,608
1,240
3,446

25,144
2,947
673
1,733
1,274
2,746

25,144
2,947
673
1,733
1,274
2,751

Subtotal
I nterfund transactions _

30,276
-638

34,564

34,581
-795

38,534

1 5 38,649
1
-767

Total trust funds.

29,637

33,786

37,882

N o t e . — F o r explanation of the columnar headings for 1966 and 1967, see pages 166' and 167.
For detailed information on expenditures by agency and account, see pages 168 t o 375*.
"'Less t h a n $500 t h o u s a n d .




44

THE BUDGET FOR FISCAL YEAR 1967
Table 6. INVESTMENT, OPERATING, AND <DTHER E X P E N D I T U R E S
(in millions of dollars)
Description

1965

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 aid, special services, and operations:
Civil
_
National defense
Total, current aids, special services, and operations
Allowance for contingencies
Interfund transactions
Total, administrative budget

_ _.

TRUST FUNDS
Additions to Federal assets:
Loans
. .
Public works
._
Other

-

Total, additions t o Federal assets___
Additions to State, local, and private assets
Expenditures for other developmental purposes
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

19,648

18,724

1,535
19

1.694
17

2,170
21

1,554

1,711

2,191

5,902
2.182

6,888
3,614

7,030
5,508

8,028
17

8,071
19

15.967

18,547

20,629

34,867
32,228

37,089
34,575

61.372

67,095

71,665

75
-647

350
-712

96,507

__ ___

-2,492
154
2,859
349
17,854

-870

Additions to State, local, and private assets:
Civil
National defense
_ _

-55
122
2,924
385
16,273

33,119
28.253

Total, additions to Federal assets

1,547
326
2.773
-170
14,007

7.867
17

___

1967

18,483

ADMINISTRATIVE BUDGET FUNDS
Additions to Federal assets:
Civil:
Loans
__
___
Investments
Public works—sites and direct construction
Other
National defense. __ _

1966

106,428

112,847

425
27
24

1,812

889
43
31

36
28

475

1.876

962

5,141
72

4.305
77

4,398
81

17,813
2,433
20,246
3,414

20,602
2,672
23,274

24,589
2,864
27,452

4,057

4,595

928
-638

992
-795

-761

29.637

33,786

1,158
37.882

Note.—For more information on this classification see special analysis D (pages 408 to 427),




45

SUMMARY TABLES
Table 7. FEDERAL RECEIPTS AND EXPENDITURES IN THE
NATIONAL INCOME ACCOUNTS (in billions of dollars)
1965
actual

Description

1966
estimate

1967
estimate

RECEIPTS, NATIONAL INCOME BASIS
51.2
27.0
16.8
24.6

60.5
31.1
16.5
34.1

128.8

142.2

64.5
30.3

Total receipts, national income basis

54.8
29.3
15.9
28.8

119.6

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

70.7
34.2
12.8

EXPENDITURES, NATIONAL INCOME BASIS
Purchases of goods and services
Transfer payments
Grants-in-aid to State and 1 ocal governments
Net interest paid
Subsidies less current surplus of Government enterprises..

8.6
4.1

9.0
4.3

74.4
39.2
14.7
9.7
4.7

118.3

131.0

142.7

+1.2

-2.2

-.5

10.9

Total expenditures, national income basis
Surplus ( + ) or deficit (—), national income basis

RELATION OF THE FEDERAL SECTOR IN THE NATIONAL INCOME ACCOUNTS
TO RECEIPTS FROM AND PAYMENTS TO THE PUBLIC
RECEIPTS
Total Federal receipts, national income accounts
Plus: Receipts not included in Federal receipts in the national income accounts:
District of Columbia government and other receipts
Realization on loans and other assets
Less: Receipt adjustments to consolidated cash basis:
Employer and employee contributions to Federal retirement funds „
Receipts netted against expenditures, etc
Accrual to cash and other adjustments
Total Federal receipts from the public ;
EXPENDITURES
Total Federal expenditures, national income accounts
Plus: Expenditures not included in Federal activities in the
national income accounts:
District of Columbia government expenditures, Federal
home loan banks, and Federal land banks and other
expenditures
Loans, pruchase of land and net purchases of foreign
currency
Less: Expenditure adjustments to consolidated cash basis:
Employer and employee contributions to Federal retirement funds
Receipts netted against expenditures, etc
Accrual to cash adjustment
Net expenditures of foreign currency and other adjustments.
Total Federal payments to the public

_.

119.6

128.8

142.2

.4
.2

.4
.3

2.2
-2. 1

2.2
-2.3
-2.5

119.7

128.2

145.5

118.3

131.0

142.7

1. 1

1.3

4.0

2.9

2.2

2.2
-2. 1

2.2
-1.5

.2

-1.5

. 3
2.2
-2.3

.6
.4

.A

-.9
.3

122.4

135.0

145.0

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. 378 to 386).




46

THE BUDGET FOR FISCAL YEAR 196 7
Table 8. RELATION OF AUTHORIZATIONS TO EXPENDITURES
(in millions of dollars)
Description

1965
actual

1966
estimate

1967
estimate

ADMINISTRATIVE BUDGET FUNDS
New obligational authority (tables 3 and 4 ) : 1
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).
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
Interfund transactions (see note to table 14)
Total administrative budget expenditures (tables 1
and 5)
From new obligational authority
From balances of prior obligational authority.

93,557
13,051

111,588
14,394

106,255
15,650

106,608
46,728
-775
832

125,982
47,454
-832
994

121,904
46,947
-994
944

-37
-1,129

-1,133

-45

-169
-47,454

-192
-46,947

-91
-259
-197
-43,869

104,606
42,617
-238

125,280

-49,607
-67
66
-870

-67,787
-66
-647

-712

96,507

106,428

112,847

49,607

41

124,385
67,787
-177
-78,436

82,108
30,739

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
164 to 167.
1
Excludes appropriations to liquidate contract authorizations: 1965, $1,782 million; 1966, $2,210
million; 1967, $2,504 million.
2
Appropriations were enacted in 1966 to cover the deficiencies which occurred between 1956 and
1961.




47

SUMMARY TABLES

Table 8. R E L A T I O N OF A U T H O R I Z A T I O N S T O EXPENDITURES—Con.
1967 Administrative Budget -Relation of Authorizations to Expenditures
$ Billion,

^
^

New Authority
Recommended
to Congress

A
•

To Be Used in 1967
82. f

A
^

• H ADMlNOTATrVi
RE

i ^
Unspent Authorizations
Enacted in Prior Years • To be held for Expenditures

114.7

W

in Later Years 8 2 . 5

1 Unspent Authorizations
for Expenditures ir
A
Future Years

*

122.3

(In millions of dollars)

Description

1965

1966

1967

1,616
30,385

613
34,435

1,712
40,872

Total new obligational authority. _
____
32,002
Unobligated balances brought forward, start of year (table 10) _
60,311
Balances no longer available: Unobligated balances lapsing. __
-22
Unobligated balances carried forward, end of year (table 10) _ _ -63,172

35,048
63,172
-68
-63,777

42,584
63,777
-36
-67,771

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
__ _ _ __

29,118
10,066
-10,328
42

34,375
10,328
-10,615

38,554
10,615
-11,090

28,897
1,379
-638

34,088
493
-795

38,080
569
-767

29,637

33,786

37,882

TRUST FUNDS
New obligational authority (tables 3 and 4): 3
Current authorizations.
Permanent authorizations

__

________

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

27,267
10,615

3
Excludes appropriations to liquidate contract authorizations: 1965, $4,726 million; 1966, $4,763
million; 1967, $5,016 million.




48

THE BUDGET FOR FISCAL YEAR 1967
Table 9. OBLIGATIONS INCURRED, NET (in millions of dollars)
Description

1965
actual

1966
estimate

1967
estimate

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 Housing and Urban Development _
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
National Aeronautics and Space Administration. _
Veterans Administration
Other independent agencies
District of Columbia
Allowance for contingencies
Total administrative budget

174
75
25
5,749
7,395
759
48,326
3
,340

100

229
93
31
5,718
6,205
1,214
61,669
1,415
11,684
675
1,,391
402
677
836
405
14,306
2,348
881
693
5,033
5,739
2,131
111
500

104,606

125,280

124,385

4,040
17,462
3,173
624
1,424
1,186
1,209

3,982
20,882
2,891
534
1,603

4,311
25,196
2,947
679

29,118

6,974
943
1,283
355
651
762
391
12,776
2,553
698
737
5,496
5,464
1,618
61

181
85
28

6,036
8,126
1,392
62,344
1,455
10,345
1,327
1,,500
394
671
937
441
13,562
2,679
921
696
5,570
5,208
1,217

65

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.

1,248

1,745
1,277

3,235

2,398

34,375

38,554

Note.—This table reflects the net obligations incurred, as explained on pages 164 and 165. For
administrative budget funds, obligations are determined by deducting from the gross obligations
the applicable receipts of public enterprise funds and intragovernmental funds, and the reimbursements to general fund and special fund appropriations. For trust funds, net obligations are
determined by deducting from the gross obligations the applicable receipts of trust revolving funds
and the reimbursements to trust fund appropriations.




49

SUMMARY TABLES

Table 10. BALANCES OF OBLIGATIONAL AUTHORITY (in millions of dollars)
Start 1965
Description

Obligated

Start 1966—
End 1965

Start 1967—
End 1966

Start 1968—
End 1967

Un- Obli- Un- Obli- Un- Obli- Unobli- gated obli- gated obli- gated obligated
gated
gated
gated

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 Housing and Urban
Development
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
National Aeronautics and Space Administration
Veterans Administration
Other independent agencies
District of Columbia
Allowance for contingencies
Total administrative budget

29
46
35
106
33
21
41
109
4
4
5
5
1
3
4
4
1
4
6,095 9,018 7,521 9,044 8,690 9,330 9,380 9,216
854 4,091
3,974
846 5,328 1,084 5,735 1,494
537
652
638
777 1,222
174 1,408
54
17,471 12,725 19,499 13, 637 28,909 13,131 33,428 10 ,400
156
403
156
263
131
81
449
24
1,894

366 3,051

466 5,722

642 7,148

621

3,781 9,535 4,474 9,716 5,365 9,715 6,453 10,222
225
446
704
128
101
369
263
772
27
36
23
17
47
37
20
24
358
311
304
209
314
42
305
514
545
13
487
14
627
528
132
46
133
96
98
48
10
7
327
386
274
44
23
195
15
151
327 1,160
399 1,450
85 1,498
1,232
282
297
244
121
271
392
369
433
431
374
299
472
188
116
261
532
2,414
330
2,745

789 2,814

145 2,517
124
540 2,784
304
953
334 1,686
355 1,947
9,903 3,651 9,471 4,565 9,711 6,419 8,845
113
107
123
105
766

25

175

42,617 46,728 49,607 47,454 67,787 46,947 78,436 43,869

TRUST FUNDS
Department of Commerce
Department of Health, Education, and
Welfare
Department of Labor
Veterans Administration
Civil Service Commission
Railroad Retirement Board
Other agencies1

6,662 2,259

6,655 2,122 6,630 2,257 6,815 2,307

91 22,172
88 21 ,950
55 7,809
12 6,850
417 6,528
411 6,441
127 15,940
105 14,699
97 3,913
96 3,762
2,692 4,350 2,886 4,688

Note.—For explanation of balances carried forward see page 166.
•Less than $500 thousand.
Obligated balances include deposit funds.

1




21 ,181
185 23 ,043
8,828
55 9,805
6,718
407 6,763
17,107
133 18,214
4,083
108 4,390
3,602 3,387 3,250

10,066 60,311 10,328 63,172 10,615 63,777 11,090 67,771

Total trust funds_

200-000 0—66

133
55
402
122
105
3,168

4

50

THE BUDGET FOR FISCAL YEAR

1967

Table 11. T H E PUBLIC DEBT (in millions of dollars)
Description

1965

1966

1967

PUBLIC DEBT HELD BY THE PUBLIC
Public debt held by the public, start of year

Change in public debt held by the public during the year:
Consolidated cash excess of receipts (—) or payments
(tables 1 and 2 ) . .
.
Receipts from exercise of monetary authority (—)
Increase or decrease (—) in debt issued in lieu of checks
(table A-3)
....
Increase or decrease (—) in cash on hand
Net borrowing from or repayments (—) to the public _.
Deduct net borrowing of Government enterprises from the
public (included on preceding line) (table B-10)
Net increase in public debt held by the public.
Public debt held by the public, end of year_

251,160

254,372

254,788

2,696
-117

6,894
-901

-491
-1,568

250
1,749

574
-4,096

289

4,578

2,471

-1,770

1,366

2,055

1,315

3,212

417

-3,086

254,372

254,788

251,702

60,553

62,902

64,814

2,349

1,912

4,921

62,902

64,814

69,734

254,372
62,902

254,788
64,814

251,702
69,734

317,274

319,602

321,436

451
139

297
101

110
134

317,864
-283

320,000
-200

321,680
-175

317,581

319,800

321,505

324,000

328,000

285,000

PUBLIC DEBT HELD BY GOVERNMENTADMINISTERED FUNDS
Public debt held by Government-administered funds, start
of year
^
Change in public debt held by Government-administered
funds during the year (table B-11)
Public debt held by Government-administered funds, end of
year

COMPARISON OF PUBLIC DEBT WITH STATUTORY
LIMITATION AT END OF YEAR
Public debt:
Held by the public
Held by Government-administered funds
Total public debt
Portion of Government enterprise debt subject to the public
debt limitation:
Held by the public
Held by Government-administered funds
Total public and guaranteed Government enterprise
debt
.
......
Portion of public debt not subject to limitation
Debt subject to limitation, end of year.
Statutory limitation on public debt, end of year:
Under existing legislation
Under proposed legislation

Note.— The first portion of this table reflects borrowing (or repayment thereof) through the
issuance of U.S. securities to the public by both the Treasury and by certain "Government enterprises," a term used here to refer to activities which have authority to issue their own securities.
The borrowing by such enterprises is then deducted to arrive at the changes in the public debt (a
term which relates to securities issued by the Treasury). "Government-administered funds" in
this table refers to activities which have authority to buy U.S. securities for investment purposes.
1
To be proposed later after timing of estimated transactions can be examined on a more detailed
basis.




51

SUMMARY TABLES

Table 12. FULL-TIME PERMANENT EMPLOYMENT IN THE EXECUTIVE
BRANCH
As of June
Description

Department of Agriculture
Department of Commerce
Department of Defense, Civil x
Department of Health, Education, and Welfare- _
Department of Housing and Urban Development_
Department of the Interior
Department of Justice
Department of Labor
Post Office Department.
Department of State
Agency for International Development
Peace Corps
Treasury Department
Atomic Energy Commission
Federal Aviation Agency
General Services Administration
National Aeronautics and Space Administration. _
Veterans Administration
Other agencies:
Selective Service System
Small Business Administration
Tennessee Valley Authority
The Panama Canal
United States Information Agency
Miscellaneous agencies
Allowance for contingencies 2
Subtotal
Department of Defense, Military and Military Assistance 3_
Total

1965
actual

1966
estimate

1967
estimate

80,103
29,162
29,902
81,741
13,427
56,716
32,620
8,913
461,211
23,398
14,713
1,061
83,494
7,047
43,761
35,370
33,082
147,007

81,070
30,360
30,400
92,500
14,300
57,540
32,650
9,300
481,250
24,300
14,900
1,150
85,000
7,000
42,500
35,750
33,700
145,700

82,850
31,840
30,900
99,010
15,350
59,500
32,700
9,600
500,000
24,400
15,750
1,200
86,200
7,030
42,300
36,750
34,000
150,850

5,746
3,567
11,268
14,083
11,405
29,288

6,800
4,000
11,350
13,800
11,410
29,770
1,900

5,790
4,700
11,750
14,180
11,430
30,620
4,800

1,258,085
974,668

1,298,400
1,067,000

1,343,500
1,073,000

2,232,753

2,365,400 2,416,500

Note.— The figures for 1966 and 1967 include tentative estimates for employment under appropriations proposed for later transmittal, In accordance with definitions of the Civil Service Commission,
the figures cover employees who are employed on June 30. More detailed information on employment is contained in special analysis C on pages 399 to 407.
1
Employment of the United States Soldiers' Home is included under "Other agencies"
below.
2
Subject to later distribution,
3
Consists of civilian employment for military functions and military assistance.







PART 3

RECEIPTS

53

ANALYSIS OF RECEIPTS BY SOURCE
This section of the budget presents detailed information about the
revenue estimates and the recommended changes in t a x laws.
Economic base of estimates.—Continued
economic expansion is
expected to raise gross national product to $722 billion in calendar
year 1966, an increase of $46.4 billion over calendar year 1965. This
projection should be considered as the midpoint of a $10 billion range,
from $717 billion to $727 billion. Personal income and corporate
profits will rise with the growth in output.
With the proposed substantial increase in Federal spending added
to the expected further strong rises in private investment and consumption, the G N P growth of 7 % will bring the economy sufficiently
close to full employment of its resources to raise the threat of price
instability. Therefore, moderate restraint through tax policy—rather
than the tax stimulus applied in 1962, 1964, and 1965—is being
recommended.
Some economic restraint will result from the increases in t h e social
security tax rates and wage base which became effective on J a n u a r y 1,
1966; and the increased user charges proposed in this budget will also
have some restraining effect.
Calendar year tax collections will be increased b y $500 million in
1966 as a result of enactment of the proposal to reinstate t h e preJanuary 1966 excise tax rates on automobiles and telephone
service. Other legislative proposals which will moderate the growth
of private demand consist of changes in tax collection procedures which
will place the payment of income and self-employment taxes on a more
current basis without changing final tax liabilities. These collection
changes will add $2 billion to tax receipts in calendar 1966, although
there will be automatic offsets by lower final settlements in subsequent
years.
The revenue estimates in the budget for 1967 are based on t h e
following economic assumptions, including the effect of the proposed
tax legislation on incomes:
ECONOMIC ASSUMPTIONS
[Calendar year i.

In billions]
1964
actual

Gross national product
_
Personal i n c o m e _ _ _
Corporate profits before taxes

54




$628.7
495.0
64.8

1965
preliminary
$675.6
530.7
74.6

1966
estimate
$722
567

80

55

RECEIPTS

Given the tax rates and structure, the level of aggregate economic
performance is the primary determinant of tax revenues. However,
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 various forms of income among taxpayers.
RECEIPTS FROM THE PUBLIC
[Fiscal years.

In millions]
1965
actual

1966
estimate

1967
estimate

Administrative budget receipts:

$51,400
29,700
9,169
2,932
1,655
5,143

$56,240
34,400
8,879
3,301
1,845
6,335

93,072

100,000

1,000

16,905
3,052
3,659
2,173
1,770
488
3,001

18,819
2,900
3,859
2,222
1,822
490
3,427

24,339
2,900
4,378
2,244
1,970
490
5,286

33,539

41,608

-4,420

-5,385

-7,069

119,699

Subtotal, administrative budget receipts

$48,792
25,461
10,911
2,716
1,442
3,749

31,047

Individual income taxes
Corporation income taxes
Excise taxes
Estate and gift taxes
Customs
Miscellaneous budget receipts

128,154

145,539

Trust fund receipts:

Employment taxes
Deposits by States, unemployment insurance
Excise taxes
Federal employees retirement systems
Interest on trust funds
Veterans life insurance premiums
Other trust fund receipts
Subtotal, trust fund receipts
Intragovernmental and other noncash transactions
Total, receipts from the public

Estimated changes in revenues.—Total receipts from the public
are estimated at $145.5 billion in fiscal year 1967, an increase of $17.4
billion over the level estimated for fiscal year 1966.
Individual income tax receipts are estimated at $56.2 billion in
fiscal 1967, $4.8 billion higher than in 1966. Higher personal incomes
will yield a substantial increase in receipts.
Corporation income tax receipts will reach an estimated $34.4 billion
in 1967, a rise of $4.7 billion above fiscal 1966. Tax liabilities are
increasing, as do corporate profits before taxes, in response to the




56

THE BUDGET FOR FISCAL YEAR

1967

continuing growth in the economy. Tax collections in 1966 and 1967
will rise faster than corporate pre-tax incomes as the proposed steppedup acceleration of corporation payments on estimated tax liabilities
becomes effective.
Excise tax receipts in the fiscal year 1967 administrative budget will
amount to $8.9 billion, $290 million less than 1966. The restoration of
the automobile and telephone and teletypewriter excise taxes will
partially offset the permanent excise tax repeals that went into effect
on January 1, 1966. Enactment of the proposed transportation user
charges also will yield higher excise tax collections for both the general
fund and the highway trust fund.
Miscellaneous receipts will increase by $1.2 billion to $6.3 billion in
1967. Seigniorage receipts will increase from $117 million in 1965 to
$901 million in 1966 and $1,568 million in 1967, reflecting full-scale
production of coins with the new metallic composition authorized by
the Coinage Act of 1965. Receipts will also rise as revenues from
previously disputed Outer Continental Shelf lands are released from
escrow and as the British Government resumes principal and interest
payments on its loans.
Employment taxes will produce an increase in receipts to $24.3 billion
in 1967 from $18.8 billion, developing primarily from the first full year
of collections under the higher social security tax rates and larger wage
base which became effective on January 1, 1966. At that time,
the combined employee-employer tax rate was raised from 7.25% to
8.4% and the covered annual wage base was raised from $4,800 to
$6,600. A further increase in the combined tax rate, to 8.8%, is
scheduled under existing law for January 1, 1967.
Proposed legislation.—This section summarizes the revenue proposals recommended for action this year.
Individual income tax.—The proposed graduated withholding
schedule on wage and salary income tax liabilities affects the timing
of tax payments during the year, but it does not change the tax
liabilities. At the present time, a flat 14% is withheld on taxable
wages and salaries; this corresponds to the tax rate on the lowest
income bracket, and it is applied regardless of the amount of income.
As a result, the taxes withheld on higher bracket wage earners is
generally too small. The proposed new schedule would increase the
amounts withheld as taxable wages and salaries increase, and thereby
would reduce underwithholding to a smaller proportion of total
income tax liability. The new withholdings schedules are assumed to
become effective on May 1, 1966, increasing receipts by $400 million
in fiscal 1967 and $95 million in fiscal 1966.




RECEIPTS

57

Corporation income tax.—Under present law, quarterly payments on
estimated tax liabilities greater than $100,000 per year are being
adjusted to a schedule that would run concurrently with the accrual
of tax liabilities during each tax year and would reach an even quarterly pattern by calendar year 1970. The legislation proposed in this
budget would require a more rapid adjustment and would complete
the transition in the 1967 tax year. Collections of corporation income
tax payments would increase by $1.0 billion in fiscal 1966 and by
$3.2 billion in fiscal 1967. The estimates assume the accelerated
schedule would first apply to payments due April 15, 1966.
Excise taxes.—Excise tax rates on automobiles and general and long
distance telephone and teletypewriter services would be restored to
the rates in effect before January 1, 1966, and the successive reductions scheduled for the future would be deferred. The estimates
assume that (1) the telephone and teletypewriter taxes would
return to 10% on April 1, 1966, and (2) the tax on automobiles would
return to 7% from 6% on March 15, 1966. On this basis, excise tax
receipts would rise by $60 million in the current fiscal year and by
$1.2 billion in fiscal year 1967.
Self-employment social security tax.—A quarterly payment of the
estimated social security tax on self-employed persons also is proposed.
It would ease the taxpayer's problem of making a single, large payment of his tax liability after the end of the tax year. The proposal
is assumed to be enacted in time for the first quarterly payment to be
made on June 15, 1966. It will increase trust fund receipts by $100
million in both fiscal 1966 and 1967.
Federal unemployment tax.—Legislation to revise the unemployment
insurance program should be enacted. The new program is not expected to affect receipts until after fiscal year 1967.
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. The user charges program also is being extended by administrative action throughout the executive branch where legislative
authority exists, and present charges are reexamined regularly to
assure that they adequately reflect the costs incurred.
Certain of the transportation user charges proposals which were
proposed last year are being modified to take into account recent
growth in transportation traffic.
The tax on air passenger traffic should be raised from 5% to 6%
until January 1, 1969. A tax of 2% on air freight waybills should be
instituted and an additional 2% added on January 1, 1969, raising




58

THE BUDGET FOR FISCAL YEAR 19 67

this tax to 4%. The growth of air transportation should generate
sufficient receipts from these taxes to meet commercial aviation's
share of the cost of the Federal airways. Accordingly, the present 2
cents per gallon tax on gasoline used in commercial aviation should be
repealed, leaving fuels used in commercial aviation untaxed. Gasoline
and jet fuels used in general aviation should be taxed at 4 cents per
gallon, and all of the receipts should be retained in the general fund.
Revised estimates of construction costs and the inclusion of new
programs in the highway trust fund necessitate some tax increases
and a short extension of the fund. The tax on diesel fuel should be
raised, and the use tax on heavy trucks should be levied according
to a scale graduated by weight. These increases would move the
contributions by truckers closer to their share of highway costs.
The expiration date of the highway trust fund should be extended
until February 28, 1973. Increased revenues for the trust fund
would permit financing (1) continued construction of the Federal-aid
highway systems, (2) forest and public lands highway programs,
and (3) a new highway safety program. The highway beautification
program enacted last year should be financed by explicitly designating
1 percentage point of the automobile excise tax for the program and
transferring it into the trust fund.
A user charge of 2 cents per gallon is proposed on fuel used by
vessels navigating the inland waterways.
User charges are also being recommended in several other programs.
Some of these charges would become miscellaneous receipts of the
general fund, and in other instances, they would be used directly to
offset the costs of operation. Examples include: (1) meat and poultry
inspections; (2) commodity inspection and classification, and warehouse inspection and licensing; (3) administration of workmen's
compensation and safety programs for longshoremen and harbor
workers; and (4) overtime border inspections of private vessels and
aircraft. In addition, user charges will be proposed to remove the
statutory prohibitions or limitations on fees charged for several
programs administered by the Attorney General and the Secretary
of the Treasury.
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
use collections on outstanding loans and revenues from power sales to
help finance their current operations and necessary capital outlays,
while remaining 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
without effect upon the budgetary surplus or deficit.




59

RECEIPTS

ESTIMATED EFFECT OF PROPOSED LEGISLATION ON RECEIPTS FROM THE PUBLIC
[In millions]
Proposal

Fiscal year
1966

Administrative budget receipts:
Income tax proposals:
Introduce graduated withholding schedule for individual incomes
Accelerate adjustment of quarterly payments on estimated corporation income tax liabilities. _ >
_
Excise tax proposals:
Restore 7% automobile and 10% telephone service excise taxes- _
Subtotal, tax proposals

_

_

$400

1.000

3.200

60

1.210

1.155

_

$95

4.810

Transportation user charge proposals:
Increase air passenger ticket tax to 6%
_
Tax transportation of air freight at 2%__
Tax fuels used in general aviation at 4 cents per gallon
Transfer aviation gasoline tax receipts from highway trust fund
Repeal tax on gasoline used in commercial aviation _ _. .
Tax fuel used on inland waterways at 2 cents per gallon
Transfer 1 % tax on automobiles to highway trust fund_
Subtotal, transportation user charge proposals. _

31
6
8
8
-4
7
-200
-144

_____

10

Other user charges
Revolving funds:
Rural Electrification Administration
_ _ __ _
Power administrations
_ _
_
Commodity grading and classification and warehouse licensing fees
Other

-189
-66

Total, administrative budget proposals. _

_

_

Trust fund receipts:
Highway trust fund:
Increase diesel fuel tax and apply graduated use tax on heavy trucks
Transfer 1 % tax on automobiles from general fund. ___ _ ___ ___
Transfer aviation gasoline tax receipts to general fund
Quarterly payment on self-employment social security tax _
Total, trust fund proposals

__
_

_

_ .__

_

Legislative proposals for user charges to be applied to reducing expenditures:
Meat and poultry inspection fees __
_
Commodity grading and classification and warehouse licensing fees
Other
_ _
__




-273

900

4,403

100

197
200
-8
100

100

._

-196
-70
-4
-3

-255

Subtotal, revolving funds

Total, proposed legislation.-

Fiscal year
1967

489

1,000

4,892

56
12
4

60

THE BUDGET FOR FISCAL YEAR 1967
Table 13. SOURCES OF RECEIPTS (in millions of dollars)
[Note.—Estimates include effects of proposed legislation.]
Description

1967

1965

1966

36,840
16,820

40,800
16,300

46,440
16,100

Gross individual income taxes _
Refunds

53,661
-4,869

57,100
-5,700

62,540
-6,300

Net individual income taxes

48,792

51,400

56,240

26,131
-670

30,400
-700

35,100
-700

25,461

29,700

34,400

2,701
915
25

2,840
915

ADMINISTRATIVE BUDGET FUNDS
Individual income taxes:
Withheld
Other

.

Corporation income taxes _

Refunds

_

__ _

Net corporation income taxes _
Excise taxes:
Alcohol taxes:
Distilled spirits
____
Beer
Rectification tax
__
_
Wines
Special taxes in connection with liquor occupations.__
Total, alcohol taxes. _

______

_.
_

no
22

2,720
890
24
111
23

__

3,773

3,768

3,921

2,070
17
61
1
1

2,055
9
59
1
1

2,065

2,149

2,125

2,127

178

110

50

186

110

50

4

28

50

_
_

Tobacco taxes:
Cigarettes (small)
Manufactured tobacco (chewing, smoking, and snuff) !__
Clears (large)

_

__

Cigarette papers and tubes
All other
Total, tobacco taxes
Documents, other instruments, and playing cards taxes:
Issues of securities, stock and bond transfersx _ _
Deeds of conveyance and foreign insurance policies
Playing cards 2
_ _
_ _
Total taxes on documents, other instruments, and
playing cards. __ _ _
__
__
Manufacturers' excise taxes:
Gasoline
___
___
Lubricating oils used in highway vehicles3
Lubricating oils not used in highway vehicles 1
Passenger automobiles 4_ ___ _ _ _
See footnotes at end of table.




1

25
117
24

60

1
1

8

1 »
1,888

55
1,460

1,330

61

RECEIPTS
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
Description

1965
actual

1966
estimate

1967
estimate

ADMINISTRATIVE BUDGET FUNDS—Continued

Excise taxes—Continued
Manufacturers' excise taxes—Continued
Parts and accessories for automobiles l
Parts and accessories for trucks 3
Electric, gas, and oil appliances2
Electric light bulbs *
Radio and television receiving sets, phonographs, phonograph records, and musical instruments 2
Mechanical refrigerators, quick-freeze units, and selfcontained air-conditioning units 2
Business and store machines 2
Photographic equipment2
Matches2
Sporting goods 2
Firearms, shells, and cartridges
Fishing rods, creels, etc
Pistols and revolvers
Fountain and ballpoint pens, mechanical pencils 2
Total, manufacturers' excise taxes _
Retailers' excise taxes:
Jewelry 2
Furs 2
Toilet preparations 2
Luggage, handbags, wallets, etc. 2
Total, retailers' excise taxes _
Miscellaneous excise taxes:
General and toll telephone and teletype service 5
Other communications services 1
Transportation of persons by air
Transportation of freight by air
Fuel used on inland waterways
Jet fuel
Admissions, exclusive of cabarets, roofgardens, etc.6.
Cabarets, roofgardens, etc 6
Wagering taxes, including occupational taxes
Club dues and initiation fees x
Leases of safe deposit boxes 2
Sugar tax
Coin-operated amusement devices 2
Bowling alleys and billiard and pool tables 2
Coin-operated gaming devices
Interest equalization tax
See footnotes at end of table.




253

130

81

11
30

43
30
274
16
11
7
1
3
24
7
3
2

76
74
35
4
21
20
7
2
9
2,870

1,818

205
31
196
81

39
3
31
19

513

92

1,079

940

1,090

126

154

197
6
7
3

52
44
7
80
7
97
4
5
15
15

41
31
7
35
2
100

25
7
3

1,415

11
0

18
12

62

THE BUDGET FOR FISCAL YEAR 19 67
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
Description

1965

1967

1966

ADMINISTRATIVE BUDGET FUNDS—Continued
Excise taxes—Continued
Miscellaneous excise taxes—Continued
All other miscellaneous excise taxes
Total, miscellaneous excise taxes

2

Gross excise taxes
Refunds
Net excise taxes

__ ___
______

Estate and gift taxes
Refunds

___

___

_____

__

Net estate and gift taxes
Customs
Refunds

_______

_ _ __
_ _

_______
_ __ _

__ _

_

Net customs
Miscellaneous receipts:
Miscellaneous taxes, gifts, and contributions.
Seigniorage and bullion charges
Fines, penalties, and forfeitures.
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. _ _

_

__
________

Interest:
Interest on loans to Government-owned enterprises
Interest on domestic loans to individuals and private
organizations
Interest on foreign loans and deferred payments
Miscellaneous interest collections
Total, interest




1,466

-11

+15

11,011
-99

9,269
-100

8,979
-100

10,911

9,169

8,879

2,957
-25

3,331
-30

2,716

2,932

3,301

1,478
-35

1,690
-35

1,880
-35

1,655

1,845

8
118
87

_.

1,341

1,442

Undistributed depositary receipts and unapplied collections.

25

2,746
-29

__

2

1,532

___ _

7
902
14

7
1,570
15

6
8
25
10
14
3
17

8
9
28
19
15
3
19

9
10
29
27
22
3
23

83

101

123

852

620

684

108
95
22

82
109
21

86
175
22

1,077

831

968

63

RECEIPTS
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
Description

1965

1966

1967

ADMINISTRATIVE BUDGET FUNDS—Continued
Miscellaneous receipts—Continued
Dividends and other earnings:
Deposits of earnings, Federal Reserve System
Payment equivalent to income taxes
Miscellaneous dividends and earnings

1,372
13
8

1,706
11
7

1,800
13
7

Total, dividends and other earnings _

1,393

1,725

1,820

42
35
32

152
36
34

335
37
36

109

222

408

11
121

13
133

65
139

132

146

204

192
214

197
154

206
168

11

22

21

427

373

396

19

11

23

Rents:
Rent on Outer Continental Shelf lands . . _
Rent of land and other real property
Rent of equipment and other personal property
Total, rents
Royalties:
Royalties on Outer Continental Shelf lands.
Miscellaneous royalties
Total, royalties
Sale of products:
Sale of timber and other natural land products
Sale of power and other utilities
Sale of minerals, publications, and other 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
._ _
Fees for general governmental services (including services to District of Columbia)
Other fees and charges

17

19

21

22
71

23
81

24
94

Total, fees and other charges for services and special
benefits

128

151

163

95
317
19

75
896
38

954
31

431

1,009

1,058

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




.
__ __

73

64

THE BUDGET FOR FISCAL YEAR 1967
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
Description

1965

1.967

1966

ADMINISTRATIVE BUDGET FUNDS—Continued
Miscellaneous receipts—Continued
Realization upon loans and investments:
Repayments from States and other public bodies
_
Repayments of domestic loans to individuals and private
organizations
Repayment of foreign loans
Repayment on miscellaneous recoverable costs __ _ _ _
Miscellaneous repayments on loans and investments

192

105

47

215
64
11
14

1
67
6
6

1
134
6
6

_

496

185

194

_ __ _
.
_ __ _

34
25
39
34

35
19
40
32

36
10
49
33

132

126

127

4,622
-3

5,794
—3

7,050
-3

4,619

5,791

7,047

-870

-647

-712

93,072

100,000

111,000

14,751
1,095
636
622
-199

15,705
1,361
766
683
544
-239

19,155
1,902
2,210
772
544
-243

16,905

18,819

24,339

3,052

2,900

2,900

Total, realization upon loans and investments
Recoveries and refunds:
Recoveries under military occupation.
Recoveries of excess profits and costs
Recoveries under foreign aid programs. __
Other recoveries and refunds
Total, recoveries and refunds

_ _

Gross miscellaneous receipts
Refunds

.

Net miscellaneous receipts_

_ _ __ .

Inter fund transactions.

_

. •__

_

__

_ ..

_ __
___

Total, administrative budget receipts

__

-

TRUST FUNDS
Employment taxes:

Federal old-age and survivors insurance trust fund..
Federal disability insurance trust fund. _
_
Federal hospital insurance trust fund
Railroad retirement account
_ _ _ _
Unemployment trust fund
Refunds
_ ._ _.
Net employment taxes
Unemployment tax deposits by States:

Unemployment trust fund




_

65

RECEIPTS
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
Description

1965

TRUST FUNDS-Continued
Excise taxes:
Highway trust fund:
Gasoline tax
Automobile truck, bus, and trailer taxes
Tire, inner tube, and tread rubber taxes
Tax on diesel and lubricating fuels used on highways
Use tax on certain vehicles
Truck parts and accessories3
Proposed legislation
. w __
Refunds
_
_
~__
Net excise taxes

_ _

___

Veterans life insurance premiums:
Veterans life insurance funds
Miscellaneous trust fund receipts:
Payments by States t o :
Federal old-age and survivors insurance trust fund
_
Federal disability insurance trust fund
Federal hospital insurance trust fund
Foreign assistance deposits
_
.
__
District of Columbia
Other trust fund receipts _ _ _ _
__
______
Net miscellaneous trust fund receipts
Subtotal, trust fund receipts

200-000 0—66




5

__ _ __
__

2,767
452
472
188
101
7

-123

-128

2,882
442
488
255
102
20
389
-200

3,859

4,378

2.173

2,222

2,244

583
65
143
255
484
216
24

556
57
148
268
541
224
27

590
57
154
280
601
226
62

1,770

Interest on trust funds:
Federal old-age and survivors insurance trust fund__ ___ _
Federal disability insurance trust fund
_ __
Railroad retirement account. _
Unemployment trust fund_
Federal employees retirement funds. _
Veterans life insurance funds _
Other trust funds

2,716
393
429
144
99

3.659

_

Federal employees and agency payments for retirement:
Federal employees retirement funds

See footnotes at end of table.

1967

1,822

1,970

488

_ __

Interest on trust funds

1966

490

490

1,258
93
824
389
1,074

1,378
114
45
860
420
1,404

1,511
151
171
1,004
493
2,723

3,639

4,221

6,053

31,686

34,334

42,374

66

THE

BUDGET FOR FISCAL YEAR

1967

Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
Description

1965

1966

1967

TRUST FUNDS—Continued
Interfund transactions
Total, trust fund receipts
Intergovernmental and other noncash transactions
Total, receipts from the public._
1
2

-638

-795

-767

31,047

33,539

41,608

-4,420

-5,385

-7,069

119,699

128,154

145,539

Repealed as of Jan. 1, 1966.
Repealed as of June 22, 1965; consumer refunds on sales of air conditioners after May 14, 1965.
3 Transferred to Highway trust fund as of Jan. 1, 1966.
4
Tax reduced from 10% to 7% on June 22, 1965, with consumer refunds on sales after May 14,
1965; reduction to 6% as of Jan. 1, 1966; proposed increase to 7% as of Mar. 15, 1966.
5 Tax reduced from 10% to 3 % as of Jan. 1, 1966; proposed return to 10% as of Apr. 1, 1966.
6 Repealed as of noon, Dec. 31, 1965.




PART 4

THE FEDERAL PROGRAM
BY FUNCTION




67

ANALYSIS OF FEDERAL ACTIVITIES BY FUNCTION
This part of the budget presents the main elements of the program
recommended for the Federal Government for fiscal year 1967. It
describes, for each of 12 major functions served, the new activities
being proposed and the estimated trends in existing programs. The
description covers programs financed by both administrative budget
accounts and trust funds, such as those for social security.
SUMMARY
The 1967 Federal program provides adequately for meeting the
Nation's needs within a total of expenditures that the economy can
support. The budget will enable us to fulfill our increased commitments in Vietnam, while allowing for orderly progress on such vital
domestic activities as improvements in education, health, housing,
urban development, and the general living conditions of the poor.
Two considerations have been uppermost in determining the level of
budgetary support for these activities, which form the core of the Great
Society programs:
First, the programs should continue to move forward on a deliberate and carefully planned basis, to insure that they are effective
in meeting their objectives and are not wastefully administered;
and
Second, the pace of their advance must be consistent with the
maintenance of economic stability, taking into account the
added claims on the Nation's resources levied by the stepped-up
conflict in Vietnam.
Total Federal payments to the public in 1967 are estimated at
$145.0 billion. This is an increase of $10.0 billion over the total estimated for 1966, of which $5.8 billion is for special Vietnam costs.
Excluding these special expenditures, Federal payments in 1967 are
estimated to be $134.5 billion, $4.2 billion more than 1966. Most of
the increase is for the new hospital and medical insurance programs
for the aged, for other new health and education programs, and for
antipoverty activities.
These and other necessary increases have been kept to a minimum
by reducing or eliminating lower priority programs, by applying
stringent tests of necessity to all proposed increases, by an expanded
effort to substitute private for public credit, and by cutting costs
through improved operating practices and increased productivity in
all agencies.
68




69

THE FEDERAL PROGRAM BY FUNCTION

In addition to the expenditures estimated in the 12 functional
categories, the budget includes $350 million for fiscal year 1967 to
cover (1) unforeseen contingencies which may arise during the year,
(2) proposals for which the financial requirements are not yet sufficiently firm to permit a precise budget estimate, such as further
development of a civil supersonic transport aircraft, and (3) matters,
such as the pay and retirement benefits of Federal civilian employees,
which are still under study.
PAYMENTS TO THE PUBLIC
In milions]

[Fiscal years.
Function

Administrative Budget
Expenditures:
National defense
Excluding special Vietnam costs
International affairs and
finance
__
Excluding special Vietnam costs_
Space research and technology
Agriculture and agricultural resources
Natural resources. _ __

1965
actual

__

_..___

Commerce and transportation. _
________
Housing and community development _ _
Health, labor, and welfare
Education
Veterans benefits and services _
._
Interest _
General government _
Allowance for contingencies
Interfund transactions (deduct) _
_

__

Total, administrative budget expenditures __ _
Total, administrative budget, excluding special Vietnam costs
Trust Fund Expenditures:
Health, labor, and welfare
Commerce and transportation
Housing and community development. _
National defense
Veterans benefits and services.
_ _
All other
Interfund transactions (deduct)

_ _

Total trust fund expenditures __ ._
(ntragovernmental transactions and other adjustments
(deduct)
Total payments to the public
_ .
Total payments to the public, excluding special Vietnam costs. _ _




1966
estimate

1967
estimate

$56,560
(51,925)
3,932
(3,828)
5,600
4,313
2,920
3,202
11
8,377
2,318
5,122
12,104
2,476
75
647

$60,541
(50,206)
4,177
(3,973)
5,300
3,372
3,062
2,672
123
9,962
2,834
5,721
12,854
2,591
350
712

96,507

106,428

112,847

(96, 404)

(101,689)

(102,308)

23,186
3,864
1,136
751
624
715
638

26,589
3,780
1,988
875
554
795
795

31,110
3,895
1,194
898
682
871
767

29,637

33,786

37,882

3,749

5,166

5,681

122,395

135,048

145,048

(122,292)

(130,309)

(134,509)

$50,163
(50,060)
4,304
(4,304)
5,093
4,898
2,750
3,499
-104
5,898
1,544
5,495
11,435
2,402

870

70

THE BUDGET FOR FISCAL YEAR 1 9 6 7

SPECIAL ASPECTS OF THE GOVERNMENT PROGRAM
The following aspects of the proposed 1967 Government program
are worthy of special note:

Federal expenditures and national output.—Federal expenditures in the national income accounts represent either purchases of
currently produced goods and services or outlays directly affecting
current levels of income. Federal sector expenditures are estimated
to be $142.7 billion in 1967, an increase of $11.7 billion over 1966.
Federal purchases of goods and services give rise to the production
and use of current resources to meet the requirements of defense,
space, public works, and other Government programs. These purchases are estimated to total $74.4 billion in 1967 and will directly
account for approximately 10% of the gross national product, about
the same percent as is estimated for 1966. More than four-fifths of
Federal purchases are for defense and space activities.
Federal expenditures other than for purchases of goods and services
also influence national output through their effect on the incomes of
consumers, businesses, and State and local governments. These
Federal outlays are estimated to be $68.3 billion in 1967, including
trust funds. This is an increase of $8 billion from the estimate for
the current year. The 1967 estimate is approximately 9% of total
national output, up slightly from the estimate for the current year.

Federal expenditures of an investment nature.—Excluding
defense and space outlays, about $15.7 billion or 20% of the cash payments to the public proposed for 1967 are for activities which—
directly or indirectly—will promote future gains in productivity and
economic growth.
For example, $3.0 billion of expenditures (other than for defense
and space) will be paid out from administrative budget and trust
funds for additions to Federal physical assets of various types—such
as civil public works, major equipment, and commodity inventories.
In the administrative budget alone, the Government will also make
gross disbursements of $7.5 billion for housing, farm, small business,
and other loans and financial investments in 1967. However, these
outlays will be more than offset by over $10 billion of receipts from
loan repayments and from sales of mortgages and other financial
assets, as part of expanded efforts to substitute private credit for
Federal loans.
In addition to expenditures for the acquisition of Federal assets,
about $6.6 billion of cash payments in 1967 represent outlays to help
finance additions to State, local, and private assets such as highways,
hospitals, schools, conservation projects, and waste treatment projects.
The Federal Government will also contribute to the future economic
growth of the Nation through its investment in human resources and




THE FEDERAL PROGRAM BY FUNCTION

71

scientific research and development. In 1967, nondefense and nonspace cash payments for education, training, and health will be
$5.3 billion. Another $2.1 billion will be for scientific research and
development, representing a major source of funds for all such
activities undertaken in the United States. No less important than
investment in physical assets, these outlays help promote the long-run
growth of the Nation by expanding knowledge, enhancing occupational
skills, increasing productivity, and encouraging technological development.
In addition, the Federal Government will spend $8.1 billion during
fiscal year 1967 for defense research and development, including the
atomic energy program, and $5.0 billion for space research and development. In the long run, a large part of these outlays will produce
many collateral benefits to the civilian sector of the economy as
well as strengthen the defense capability of the Nation,
Substitution of private for public credit.—Federal agencies
will provide substantial credit aids in fiscal year 1967 to help carry out
a wide variety of Government programs. Only a small fraction of this
aid will entail Federal expenditures. The great bulk will be in the
form of Government guarantees of private loans, rather than direct
Government loans. Recently enacted authority to encourage insurance of private loans to students and for rural housing will further
reduce reliance upon direct Federal loans. In addition, the amount of
public credit has been reduced in recent years as a result of substantial
sales of direct loans to private financial institutions.
All major direct loan programs of the Federal Government have
recently been evaluated with the objective of substituting private
for public credit wherever feasible and consistent with the purposes of
the programs. On the basis of this evaluation, legislation is being
recommended to make a much broader range of Federal loans available
for private investment by authorizing sales of participations in pools of
such loans. In the past, such participation sales have been highly
successful in expanding the market for loans of the Export-Import
Bank, the Federal National Mortgage Association and the Veterans
Administration. The net effect of this legislation on the budget will
be to increase receipts from asset sales by an estimated $350 million in
1966 and $2.8 billion in 1967. Total sales of all types under existing
and proposed legislation are estimated to rise from $1.6 billion in 1965
to an estimated $3.3 billion in 1966 and $4.7 billion in 1967. These
additional receipts will cause corresponding reductions in 1967 budget
requirements.
Federal expenditures and the balance of payments.—The
deficit in the Nation's overall balance of payments in calendar year
1965 was reduced by about 50% from the 1964 level. The major




72

THE BUDGET FOR FISCAL YEAR 1967

reason for this substantial improvement was the large drop in the
outflow of private capital following actions taken in February 1965
to extend the interest equalization tax to shorter term loans and
to initiate a broad program of voluntary restraints on investments
abroad by banks and other private business concerns. Income from
foreign investments also increased sharply in 1965. These factors
more than offset a decline from 1964 in the export surplus of goods and
services.
In recent years, actions taken by the Federal Government to reduce
the impact of its regular activities on the balance of payments have
contributed significantly to the improvement in our overall position.
Federal overseas expenditures were reduced by $715 million between
fiscal years 1963 and 1965. Government receipts from abroad also
declined during the same period, but much less sharply.
The net outflow abroad (payments less receipts) from regular
transactions of the Federal Government declined by 20% between
1963 and 1965. Apart from the costs of special Vietnam operations this net outflow is estimated to decline by another 6% between
1965 and 1967.
NATIONAL DEFENSE
The national defense effort this year and in the year to come is
heavily influenced by two paramount objectives. The first objective
is to provide whatever forces and equipment are needed to help South
Vietnam retain its independence. The second is to maintain and
improve our balanced strategic and conventional war forces. These
forces, designed to counter all forms of threat to our vital interests,
have been built up at great cost. So long as cold war tensions persist,
large sums will continue to be required to maintain their superiority
over the forces of any potential aggressor. Neither objective can be
slighted. The 1967 budget, and the supplemental funds being req uested for the present fiscal year, will provide for both.
Primarily because of the heavy costs of our efforts in Southeast
A sia, expenditures for national defense programs are estimated to rise
from $50.8 billion in 1965 to $57.4 billion in 1966 and then to $61.4
billion in 1967. Aside from special Vietnam costs, regular national
d efense payments would actually decline from $52.8 billion in 1966 to
$51.1 billion in 1967.
Department of Defense.—Total expenditures for the military
functions of the Department of Defense are estimated at $57.2 billion
in 1967, $4.2 billion more than now estimated for 1966 and $11.0
billion more than in 1965. New obligational authority of $58.9 billion
is proposed for the Department, compared with $61.8 billion for the
current year, including supplemental requests being transmitted




73

THE FEDERAL PROGRAM BY FUNCTION
NATIONAL DEFENSE
[Fiscal years.

In millions]
Payments to the
public

Program or agency

1965
actual

Administrative Budget 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

1966

1967

$14,771 $16,600 $18,150
12,349 14,160 14,980
11,839 13,880 15,970
6,400
6,236
6,370
1,120
1,140
1,007
545
650
619
100
100
93
-115
25
-741

Recommended
new obligational
authority
for 1967

$18,676
15,700
16,408
6,905
593
522

133

Subtotal, Department of Defense—military functions
58,938
46,173 52,925 57,150
Subtotal, excluding special Vietnam costs
(46,070)(48,515) (46,965) (50,175)
1,150
917
Military assistance
K229
1,275
(917)
(1.229) (1,050) (1,000)
Excluding special Vietnam costs
2,263
2.300
2,625
Atomic energy
2,390
Defense-related activities:
20
17
20
16
Stockpiling of strategic and critical materials
-123
-148
60
Expansion of defense production
60
53
43
Selective Service System
52
16
16
17
Emergency preparedness activities
15
50,163 56,560 60,541 162,205
Subtotal, administrative budget
Subtotal, administrative budget, excluding special
(50,206) (53, 442)
(50,060)(51, 925)
Vietnam costs
Trust Funds:
Military assistance
Other...
Subtotal, trust funds

745
7
-

Intragovernmental transactions and other adjustments (deduct)
Total
Total, excluding special Vietnam costs
1

867
8

71
5

875

14
2

1
4

1,144
6

891
6
1

1,150

34

50,790 57,421 61,404
(50,687)(52,786)(51,069)

Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $ 5 3 , 1 9 8 million; 1966, $65, 758 million.
Trust funds: 1965, $778 million; 1966, $1,143 million.

separately to the Congress. The 1966 and 1967 estimates are not
exactly comparable with those for 1965 due to a shift of funding for




74

THE BUDGET FOR FISCAL YEAR 1967

Military Assistance supported forces in South Vietnam to the accounts
of the military services during 1966.
The expenditure increases in 1966 and 1967 primarily reflect the
heightened conflict in Vietnam, which has resulted in more U.S.
forces there and in increased use and consumption of combat equipment, supplies, and ammunition. Certain other factors, such as the
substantial raise in military pay enacted by the last session of the
Congress, also account for a portion of these changes.
The 1967 budget will allow us to support those financial requirements in Vietnam which can now be foreseen without weakening forces
devoted to other missions. Department of Defense expenditures
excluding special Vietnam costs will decline from $48.5 billion in 1966
to $47.0 billion in 1967 reflecting in part an effort to defer programs
not critical to mission performance and continued phase-out of
weapon systems no longer needed.
In 1967, we will (1) continue to improve the effectiveness and survivability of our strategic forces; (2) further modernize our conventional war forces by increasing their firepower, mobility, and ability to
fight for extended periods; and (3) press ahead vigorously with the
research and development programs needed to provide the weapons
and defenses of the future.
At the same time, the Department will continue to emphasize the
highly successful cost reduction program, begun in 1961. The
recently announced consolidation, reduction, or discontinuance of
more unneeded defense installations, along with other measures, is
expected to raise the annual rate of savings above $6 billion by 1969.
The Department will also continue to phase out obsolete weapon
systems. These actions will help keep costs lower than they would
otherwise be, but they involve no sacrifice of military readiness.
The table on page 76 shows, on a selected basis, the force structure
to be supported.
The Defense program budget is summarized in the table on the
following page, based on total obligational availability. This 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. This concept, introduced into defense planning in 1961,
involves the grouping of all forces according to major military mission,
regardless of military service.
Strategic retaliatory forces.—The primary mission of our strategic
retaliatory forces is to deter military attacks against the United
States and its allies. To do so, such forces should clearly be capable
of inflicting unacceptable damage on any aggressor. If deterrence




75

THE FEDERAL PROGRAM BY FUNCTION

SUMMARY OF THE DEPARTMENT OF DEFENSE BUDGET PROGRAM
[Fiscal years.

In billions]
Total obligational availability

Major military programs

1965
actual

1966

1967

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

$5.3
1.6
19.0
1.5
2.1
4.9
14.5
1.4

$5.1
1.7
30.0
2.2
2.2
5.3
16.8
1.6

$5.1
1.4
25.7
2.1
2.4
5.5
16.7
1.8

Total obligational availability..
Of which:
New obligational authority
Excluding special Vietnam costs
Prior year funds

50.1

64.9

60.4

49.4
(48.7)
.7

61.8
(47.8)
3.1

58.9
(50.2)
1.5

should fail, strategic retaliatory forces should also contribute, in
combination with defensive forces, to limiting damage to ourselves
and our allies by striking the aggressor's residual strategic offensive
forces.
Our strategic forces are sufficient for these tasks with a margin of
safety to spare. They include:
• More than 850 operational intercontinental ballistic missiles'
• Over 650 strategic bombers, with 50% on 15-minute ground
alert.
• 464 missiles aboard 29 operational Polaris submarines.
Our strategic retaliatory capability cannot remain static. Quantitative and qualitative changes are adopted as a result of either new
technology or a reassessment of the threat from potential aggressors.
The 1967 budget provides for a number of such changes including:
• Initial procurement of the new, improved Minuteman III.
• An increase in the size of the current Minuteman and Polaris
forces through the addition of more Minuteman II and Polaris
A-3 missiles.
• The start of a long-range program to retire the older models of
the B-52 and, eventually, the B-58 bombers, with a 1967 reduction
of three B-52 squadrons, in view of their increasing age and cost and
the growing capability of our missile forces.




76

THE BUDGET FOR FISCAL YEAR

1967

SUMMARY OF ACTIVE FORCES

Military personnel (in thousands):
Army
Navy
Marine Corps
Air Force
Total, Department of Defense
Selected military forces:
Strategic retaliatory forces:
Intercontinental ballistic missiles (squadrons):
Minuteman
Titan
Atlas
Polaris submarines (in commission) ___
__
Strategic bombers (wings):

B-52
B-58
B-47
Continental air and missile defense forces:
Manned fighter interceptor squadrons
Interceptor missile squadrons (BOMARC)
Army air defense missile battalions A
General purpose forces:
Army divisions (combat ready)
Army special forces groups
Warships (in commission):
Attack carriers
Antisubmarine warfare carriers
Nuclear attack submarines
Other
Amphibious assault ships (in commission)
Carrier air groups (attack and ASW)
Marine Corps divisions/aircraft wings
Air Force tactical forces squadrons
Airlift and sealift forces:
Airlift aircraft (squadrons):
C-130 through C-141
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)

Actual,
June 30.

Actual,
June 30,

1961

Description

1965

Estimated
June 30,
1966

June 30,
1967

858
627
177
820

968
671
190
824

1,159
724
250

854

1,234
728
278
853

2,482

2,653

2,987

3,093

16
6

4
5

20
6

29

37

41

1
20

14
2
5

13
2

12
2

42
7

39
6
23 }{

34
6
18

31
6
18

11
3

16
7

16
7

17
7

15
9
13
328
110
28
3/3

93

16
9
21
331
135
28
3/3
117

15
8
24
331
168
27
4/3
125

15
8
40
311
168
27
4/3
128

16
35
101

38
19
106

41
16
11,8

46
11

5,564
8,793

6,957
8,056

16,905

14,875
880

13

819

117

7,940

9,282

8,086
14,042
941

8,315
13,785

939

A Decrease from 1961 to 1965 reflects phaseout of Nike-Ajax and transfer of Nike-Hercules
battalions to Army National Guard.




THE FEDERAL PROGRAM BY FUNCTION

77

• Initiation of procurement of the FB-111—with an ultimate
force goal of 210 of these aircraft—to replace, in the future, 345
B-52's and all 80 of the B-58 bombers. The 1967 budget also
provides for development of a new short range air-to-surface missile
(SEAM).
In addition, a vigorous development program will enable us to make
quickly whatever further improvements new threats may dictate.
In the 1967 budget particular emphasis will be placed on development
of the Poseidon submarine-launched ballistic missile and continued
work on penetration aids for our missiles.
Total obligational authority required for these forces in 1967 is
estimated at $5.1 billion, the same as in 1966.
Continental air and missile defense forces.—Interceptor aircraft,
surface-to-air missiles, warning and control systems, and the civil
defense program all contribute to the capability to limit damage to
the United States in the event of an attack. The basic objective is
to provide a balanced force which will reduce damage from various
possible kinds of attack and make the problem of attacking the
United States as complicated as possible. Total obligational availability for this program is estimated at $1.4 billion in 1967, $0.3 billion
less than in 1966.
The relative increase in importance of the missile threat to the
United States and the relative decline of the threat from bomber
attack permit further downward adjustments in active force interceptor aircraft, surface-to-air missiles, and radar sites. Plans also
call for continued replacement of older National Guard aircraft with
more modern interceptors released from the active forces in 1967.
To be prepared for any sudden change in the bomber threat, development efforts will continue on such items as an advanced interceptor,
warning and control equipment, and surface-to-air missiles so that
these will be available for deployment if needed.
Increased funds are proposed in 1967 for development of the
NIKE-X antimissile.system. High priority will be given to developing components which will provide a broad range of choice for an
operational system. At the same time, studies of alternative deployments of such a system will be continued. This budget also provides
funds for improving our capability to track, photograph and, if
necessary, intercept objects in space.
In 1967, the civil defense program will continue to identify more
shelters and increase the capacity of existing shelters. With the
cooperation of State and local governments, communities will be given
management assistance for shelter planning and assignment. New
techniques for incorporating fallout shelters in new private buildings




78

THE BUDGET FOR FISCAL YEAR 1967
^

at little or no cost will continue to be explored. In addition, the 1967
budget provides for a small experimental effort to test the application
of these techniques to a variety of new construction projects.
General purpose forces.—Our ability to meet the threat of largescale conventional war and to respond appropriately to various forms
of lesser conflict, depends on strong and flexible general purpose forces.
Over recent years, improvements in the readiness, mobility, and firepower of these forces have been significant. In addition to replacing
supplies, weapons, and equipment consumed in combat in Vietnam,
the 1967 program extends these gains and strengthens further the
power of our general purpose forces through additional stocking of
modern supplies, equipment, and nonnuclear ordnance. The program
also reflects experience we have gained in Southeast Asia.
In 1967, total obligational availability of $25.7 billion is estimated
for these forces. This is an increase of $6.7 billion over 1965 but
a decrease of $4.3 billion from 1966. The 1966 and 1967 funds are
necessary to meet foreseeable requirements resulting from the intensity
of the Vietnam conflict without impairing other needed capabilities.
These include temporary increases in Army and Marine Corps division
and brigade force structures and support.
Both the Army and the Marine Corps will organize additional
helicopter units. Armored elements will benefit from continued
procurement of the M-60 tank fitted with the Shillelagh missile.
Initial procurement of the new lightweight and easily transportable
Lance surface-to-surface missile—to replace existing Honest John and
Little John tactical missiles—will also be funded in 1967.
The flexibility and mobility of Navy general purpose forces will be
further enhanced in 1967. Provision is made for the procurement or
conversion of 51 ships, including the construction of our second
nuclear-powered aircraft carrier. Emphasis will be placed on antisubmarine warfare—including construction of 10 new destroyer escorts and 5 new nuclear-powered attack submarines—and on the air
defense of our carrier forces. Two additional missile ships will be
constructed for this mission, and development will proceed on a
new air defense missile system (TARTAR D). Modernized and faster
ships in the fleet amphibious forces will enable Marine division/wing
teams to respond more quickly and effectively to emergency situations.
Improvements include construction of 12 assault ships, development
of an optimum general-purpose assault ship, and construction of 5
new dual-purpose ships for minesweeping and minehunting.
Our superiority in tactical air forces will be maintained. The Air
Force combat training force will be expanded and our inventories of
tactical aircraft will increase in quantity and quality as more modern




THE FEDERAL PROGRAM BY FUNCTION

79

aircraft replace those lost in Vietnam. Key elements are further
procurement of the modern, improved F-4 and introduction of an
Air Force adaptation of the A-7—a new attack aircraft already in
production for the Navy and possessing good range and payload
characteristics. In addition, large-scale purchase of the F - l l l A
will begin for the Air Force. A new lightweight, multipurpose aircraft
for counterinsurgency warfare in difficult terrain will be procured for
use by the Navy, Air Force, and Marine Corps. Our land-based
tactical air forces will benefit from initiation, in 1967, of a construction
program to protect overseas airfields from nonnuclear attack.
Airlift and sealift forces.—The ability to concentrate military forces
rapidly and sustain them in combat may significantly reduce the duration and destructiveness of a conflict. It also reduces the need to
station forces near potential trouble spots overseas. For these reasons,
the 1967 budget provides for continued progress in reducing our reaction time in limited war situations. Provision is made for increasing
both our airlift and sealift capabilities. Total obligational authority
is estimated at $2.1 billion in 1967, slightly less than in 1966.
In 1967, procurement of the revolutionary new C-5A transport
aircraft will be initiated. The C-5A has many times the effective payload of our best existing transport, the C-141. Because of the rapid
buildup in Vietnam, deliveries of previously ordered C-141 aircraft
are being accelerated in 1966. Procurement of this aircraft will be
completed with funds requested for 1967.
In order to complement this growing airlift capability and achieve
a better balance between airlift and sealift, contracts for competitive
design will be awarded later this year for the first of a new class of fast
deployment logistic ships. A new concept in ship construction, these
vessels will provide larger capacity, greater speed, and more efficiency
than present transport ships. Used alone, or in tandem with the C-5A,
they will improve our ability to bring the weight of our fighting forces
rapidly to bear in distant areas of the world.
In addition, four more Victory ships will be modified in 1967 to
serve as forward floating depots for storage of military equipment
near potential trouble spots.
Reserve forces.—Present defense planning requires highly trained
reserve units—not just large numbers of men—which can be mobilized
and deployed quickly in an emergency. To achieve needed combat
readiness, the Secretary of Defense has proposed a major realignment
of Army reserve components, disbanding units not required to meet
contingency plans and improving the manning and equipment allowances of required units. A simpler and more effective organization




80

THE BUDGET FOR FISCAL YEAR

1967

will be achieved, and management costs will be reduced, by placing
all remaining paid drill units in the National Guard.
Reflecting this action, the paid drill training strength of Army
reserve components is expected to drop to 580,000 by the end of
fiscal year 1967, compared with 688,500 now estimated for the end of
the current year. Reduced personnel costs resulting from the realignment will be largely offset by accelerated procurement of modern
weapons and equipment for the reserves.
As a result of Vietnam, selected units of the reserve components
of the Army and Air Force have been increased to full strength, provided with additional equipment, and required to perform additional
training in order to improve their readiness. In addition, certain
Air Force Reserve transport units which had been previously scheduled
for inactivation have been retained, and additional strength has been
provided for the Marine Corps Reserve.
In 1967, total obligational availability to support the reserve components of the Army, Navy, Marine Corps, and Air Force is estimated
at $2.4 billion, compared with $2.2 billion in 1966.
Research and development.—The 1967 total obligational availability is
estimated at $5.5 billion, somewhat more than in 1966. This does not
represent the Department's total research and development effort;
amounts for development of systems already approved for procurement, such as the C-5A, are included in appropriate mission-oriented
programs.
The 1967 budget will continue support for (1) development of
weapon systems for the future; (2) improvement of existing weapons,
detection devices and other equipment; and (3) maintenance of a
base of military-related research and applied technology. The 1967
research and development program includes many projects related to
limited and conventional wars, while also continuing development of
advanced strategic systems. This broad approach will yield substantial flexibility in the selection of weapons appropriate to future
tasks.
Limited and conventional war projects include a weapons helicopter
for close fire support and advanced air-to-surface and air-to-air
missiles. A number of developments related to Vietnam will be
accelerated in 1966, such as the A-7A aircraft for the Air Force, and
research on drug-resistant strains of malaria. Military technology
and research includes the Army's limited war laboratory and such
projects as deep submergence vehicles and submarine rescue programs.
In 1967, funds will be increased substantially for development of
an advanced surface-to-air missile (SAM-D) designed to fill both
battlefield and continental air defense roles. The budget also provides




THE FEDERAL PROGRAM BY FUNCTION

81

for development of a variety of weapons and equipment for undersea
warfare.
The Defense space program will continue at about the 1966 level.
Work will proceed on improved follow-on systems to the initial
Defense communications satellite system and on the development of
the manned orbiting laboratory (MOL). Other space programs
receiving continued attention include advanced developments leading
to improved capabilities in navigation, nuclear test detection, and
early warning of missile launches. Reentry and recovery technology
and other supporting research will also be continued.
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 testing effects of nuclear
weapons 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 1967 is estimated at $16.7 billion, compared with $16.8 billion in
1966.
Although we have not yet met the full need for military family
housing units, the substantial costs of military operations in Southeast
Asia dictate a deferral of authorized and funded new construction in
fiscal year 1966. For the same reason, the 1967 budget does not
provide funds for the construction of additional units.
The general support program in 1967 reflects the increased tempo
of support operations connected with South Vietnam, including greater
maintenance and repair costs. The program also includes intensified
supply activities; stepped-up recruit, technical, and pilot training;
and higher medical costs resulting from increases in the number of
military personnel and their dependents.
Continued emphasis is placed in 1967 on improvements in communications. Two major new worldwide automatic systems—one for
voice and one for the transmission of teletype messages and computer
data—are being installed as planned. The initial Defense communications satellite system, designed for improved communications with
remote areas and secure tactical communications for naval forces,
should become operational in calendar year 1967. In addition, significant improvements are being provided in connection with the conflict
in Vietnam.
Proposed legislation.—Proposals are being made for the future
expansion of medical care benefits now available to the dependents of
military personnel and to retired personnel and their dependents. A
200-000 O—66




6

82

THE BUDGET FOR FISCAL YEAR 1967

part of the cost of the services rendered under these new programs will
be paid by the personnel receiving them.
Legislation is also being proposed to modernize, simplify, and make
more uniform the statutes governing the appointment, promotion,
and separation of the officer personnel of all the armed services.
National Defense as a Percent of Federal Payments

Military assistance.—The security of the free world cannot be
guarded by one nation alone. The loss of freedom anywhere is a
vital concern to all free peoples. The United States, therefore, provides assistance to free nations unable by themselves to support
adequate military forces. This aid has mutual advantages; it improves the ability of recipients to cope with subversion and aggression
and lowers the requirement for U.S. forces.
Our aid is mainly directed to the vulnerable countries close to
Communist China and the Soviet Union. Exclusive of South Vietnam, about three-quarters of the total military assistance program
will be devoted to those nations in 1967. With our assistance, they
will be able to maintain about three million men under arms.
Primarily because expenditures for South Vietnam military assistance are being shifted to the military services, total expenditures
shown for military assistance in 1967 are estimated to decrease to
$1.2 billion from $1.3 billion in 1966. Unexpended balances for
South Vietnam military assistance will be transferred to the Department of Defense budget toward the end of 1966.




THE FEDERAL PROGRAM BY FUNCTION

83

Atomic energy activities.—Expenditures by the Atomic Energy
Commission in 1967 are estimated to be $2.3 billion, down $90 million
from 1966. A decline is estimated in expenditures for procurement
of uranium concentrates and for production of special nuclear materials and weapons. These decreases will be partially offset by
increases in the basic research programs and in several developmental
activities. The present energetic cost reduction program will be
continued in 1967.
Nuclear weapons.—An expenditure reduction from the 1966 level
for the production of nuclear weapons is made possible by the accomplishments of recent years in the stockpiling of nuclear weapons.
The three other principal elements of the Atomic Energy Commission's
weapons program will remain approximately at the 1966 level. These
are: (1) the development of improved weapon designs; (2) the conduct
of underground weapons testing; and (3) the program, conducted
jointly with the Department of Defense, to maintain a readiness for
resumption of atmospheric testing in the event of violation by another
nation of the limited nuclear test ban treaty.
Peaceful uses of nuclear energy.—With the increasingly widespread
acceptance and use of nuclear power reactors, the efforts of the Federal
Government are focused upon development of improved designs which
will use nuclear fuels more efficiently and produce electric power at
lower cost. Work on the so-called "fast breeder" reactors—which
would produce more fuel than they consume—will be intensified, with
design in 1967 of a special test reactor, expected to cost about $75
million. In addition, the Atomic Energy Commission is exploring
"slow breeder" technology, using thorium as a fuel, and is continuing
to pursue two shorter term approaches—the "advanced converters"—
to more efficient utilization of nuclear fuels.
The Atomic Energy Commission—in collaboration with the National Aeronautics and Space Administration—will continue to develop nuclear energy for propulsion (Rover) and auxiliary electric
power (SNAP) for missions in outer space. Pursuit of shorter term
applications of these technologies will be intensified, while the level of
effort for long-term applications will be reduced somewhat.
Studies are being made to choose the most appropriate site for a
200-billion electron volt (Bev) circular proton accelerator. This
accelerator, with supporting equipment and facilities, has an estimated capital cost of about $375 million. Design funds for the
200-Bev machine will be requested once a site has been selected and
the design has been authorized.




84

THE BUDGET FOR FISCAL YEAR

1967

The budget also provides design funds for another unique particle
accelerator, a very high intensity 800-million electron volt (Mev)
meson physics facility at the Los Alamos Scientific Laboratory,
expected to cost about $55 million.
Defense-related activities.—Combined expenditures of the various
defense-related functions of agencies other than the Department of
Defense and the Atomic Energy Commission are estimated to
decrease by $30 million in 1967.
Selective Service System inductions in fiscal year 1966 are now
expected to be 235,000 higher than estimated last January, for a total
of 360,000. Although this increased workload is partially offset by
discontinuance of the special program for referral of 18-year-olds for
physical and mental examinations, a supplemental appropriation of
$13 million will be required. Following this buildup, the budget for
1967 provides for the processing of 160,000 inductees.
The stockpile of strategic and critical materials will be further
reduced in 1967 through increased disposals of materials excess to our
long-term needs. Disposals of $1 billion of excess stockpile material
are projected in both 1966 and 1967. These disposals will reduce
annual maintenance and management costs in future years and will
provide an important supply of materials to an expanding economy.
Legislation should be enacted to achieve better management of the
stockpile through the consolidation of inventories and the facilitation
of disposals.
INTERNATIONAL AFFAIRS AND FINANCE
The Federal Government engages in a variety of activities in pursuit
of our objectives of world peace, stability, and prosperity. These
include:
(1) Negotiation with other nations on issues ranging from the reduction of armaments to the liberalization of trade,
(2) Active participation in the United Nations and associated international organizations,
(3) Conduct of worldwide programs of information and exchange of
persons, and
(4) Provision of economic assistance to help developing nations
achieve economic and social progress.
Total expenditures for the international affairs and finance activities
of the Government are expected to be $4.4 billion in 1967, $337 million
more than in 1966. Excluding special Vietnam costs, total payments
rise by $237 million from 1966 to 1967.
The 1967 economic assistance program is characterized by the
following major developments: first, increased emphasis on assistance
in the areas of health and education; second, a comprehensive approach




85

THE FEDERAL PROGRAM BY FUNCTION
INTERNATIONAL AFFAIRS AND FINANCE
[Fiscal years.

In millions]
Payments to the
public

Program or agency

1965

Administrative

Budget

1966

1967

Recommended
new obligational
authority
for 1967

Funds:

Conduct of foreign affairs:

$300
7
3
35

$312
9
3
2

$313
9
4
2

$324
10
4
2

754
227
367
387
306

669
204
420
509
298

654
200
430
642
273

665
231
543
747
282

2,041

2,100

2,200

2,469

(2,041) (1996)

Department of State
U.S. Arms Control and Disarmament Agency.
Tariff Commission
Foreign Claims Settlement Commission

(1,996)

(2,144)

70
10
88
-309
15

354
20

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..
Subtotal, Agency for International
excluding special Vietnam costs

Development,

International financial institutions:
Present programs
Proposed legislation
Peace Corps
Export-Import Bank
Other
.

320

11
1,641
165
58
4,304

79
-357

Food for Peace
_
Foreign information and exchange activities:

United States Information Agency
Department of State
Subtotal, administrative budget
Subtotal, administrative
Vietnam costs
Trust

budget, excluding

Intragovernmental transactions and adjustment for net cash
issuances or withdrawals by international financial
institutions (deduct)
___

Total, excluding special Vietnam costs.
1

1,539

6
1,617

171
58

179
58

185
56

3,932

4,177

15,157

(4,304) (3,828) (3,973)

(4,832)

-160

190

-439

30

126

-125

4,429
4,092
4,583
(4,583) (3,988) (4,225)

Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $6,703 million; 1966, $5,497 million.
Trust funds: 1965, $21 million; 1966. $156 million.




110

special

Funds-

Total

10
84
-532
13
1,701

__

136

86

THE BUDGET FOR FISCAL YEAR

1967

to help feed the hungry peoples of the developing world, stressing
greater agricultural production in the recipient countries; third, an
acceleration of our efforts to encourage the less developed countries
to take vigorous self-help measures) fourth, a further concentration of
our economic assistance in key developing countries, and fifth, a
five-year authorization for economic assistance. Details of these
proposals will be set forth in special messages.
Conduct of foreign affairs.—The Department of State has primary
responsibility for the conduct of foreign relations. To represent U.S.
interests, the Department operates some 268 diplomatic and consular
posts in 113 countries and expects to establish diplomatic relations
with 4 newly independent nations in 1967.
The budget provides for processing 1.5 million passport applications
in 1967, 10% more than in 1966. In addition, approximately 1.3
million nonimmigrant visas are expected—a 7% increase over 1966.
The budget also includes funds for better worldwide communications,
increased security at overseas posts, administration of the recent
amendments to the Immigration and Nationality Act, and more adequate space for the Foreign Service Institute. Pending legislation
should be enacted to provide a unified Foreign Service for the Department of State, the Agency for International Development, and the
United States Information Agency.
The United States will continue to share in the cost of supporting
the United Nations and other international organizations of which
this Nation is a member. Participation in these bodies is essential
to increased cooperation among the countries of the world on matters
of peace, security, economic and social progress, and scientific advancement. At the same time, we intend to play an increasingly
active role in reviewing the program and budgetary proposals of the
various international organizations.

Agency for International

Development.~The

Agency for

International Development administers economic aid programs to
assist less developed countries in achieving economic and social
progress, maintaining political stability, and resisting aggression or
subversion. The United States supplements local resources and supports self-help efforts, in coordination with the programs of international organizations and other donor nations.
The 1967 budget includes funds for new and expanded programs
to be proposed in the fields of international health, education, and
agricultural assistance. These programs will assist other nations in
areas critical to economic development, improve mutual understanding, and strengthen American capabilities in these fields. Our agricultural assistance will be reoriented and expanded as part of a com-




THE FEDERAL PROGRAM BY FUNCTION

87

prehensive effort to help meet the growing food needs of the developing
nations. Agency for International Development assistance and the
Food for Peace Program will be more closely related to each other
in support of the efforts of the developing countries to raise their
agricultural production.
Total expenditures by AID are estimated at $2.2 billion in 1967, an
increase of $100 million over 1966. This rise is entirely the result of
the heightened conflict in South Vietnam. Exclusive of special
Vietnam costs, AID expenditures will remain level at $2.0 billion in
both 1966 and 1967. These amounts will cover only the highest
priority requirements and reflect a continuing effort to increase the
effectiveness and efficiency of our assistance programs. Within a
constant level of expenditures, assistance in the fields of education,
health, and agricultural production will be increased. To promote
development through better planning, legislation is being recommended to authorize AID activities for a period of 5 years.
Continued progress is being made in tying economic assistance
programs to the purchase of goods and services in the United States.
More than 80% of AID expenditures in 1967 will be for purchases of
U.S. goods and services compared to about 42% in 1960. This
minimizes the effect of our assistance program on the U.S. balance of
international payments. In addition, the foreign aid program assists
the long-term growth of U.S. exports by stimulating new trade patterns
and opportunities.
Agency for International Development - Expenditure Trends




88

THE BUDGET FOR FISCAL YEAR

1967

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 will total an estimated $654
million in 1967, $15 million less than in 1966. This total excludes
loans under the Alliance for Progress, discussed separately.
The development loan program is concentrated in a limited group
of countries. It finances the dollar costs of capital projects and critical imports upon which economic growth depends. In these countries, U.S. assistance is part of an overall program of economic
development carried out in accordance with a well-defined set of plans
and domestic policies.
To complement development loans, the United States provides
funds—largely through grants—to cover part of the costs of furnishing
U.S. advisers. The experience and technical skills of these advisers
assist in dealing with complex problems in the fields of education,
health, agriculture, public administration, internal security, and other
areas essential to economic and social development. Expenditures
for technical cooperation are expected to be $200 million in 1967,
about the same as in 1966.
Alliance for Progress.—This program is a cooperative, long-term
effort of the United States and the Latin American nations to promote
economic and social reform and development. U.S. participation
consists largely of development loans and technical assistance, related
to self-help performance by the recipients.
Expenditures for the Alliance for Progress will total $430 million
in 1967, an increase of $10 million over 1966. The activities financed
by AID are coordinated with the Inter-American Committee on the
Alliance for Progress and the Inter-American Development Bank.
Supporting assistance.—In several countries where there are immediate threats to political and economic stability, the United States
provides grants and loans. While these programs contribute to
development, they are particularly designed to counter dangers to free
world security. Expenditures for supporting assistance are estimated at $642 million in 1967, compared to $509 million in 1966.
This increase largely reflects higher expenditures in South Vietnam.
Other AID programs.—The Agency for International Development
will continue to guarantee private investment abroad, thus encouraging increased participation by the American business community
in the developing countries. The total value of guarantees outstanding is expected to rise in 1967 to $4.6 billion, about $1.6 billion more
than in 1966.




THE FEDERAL PROGRAM BY FUNCTION

89

The efforts of international agencies such as the United Nations
Development Program complement our own bilateral activities by
enlisting the coordinated support of other nations. The budget
proposes expenditures of $110 million to support the important role
of these organizations, an increase of $10 million over 1966.
Other economic and financial programs.—New obligational
authority of $250 million is requested for 1967 to complete a 3-year,
$750 million increase in the U.S. contribution to the resources of the
Inter-American Development Bank's (IDB) Fund for Special Operations. This contribution will bring to $1.2 billion our total subscription
to this Bank for strengthening the Alliance for Progress during these 3
years. New obligational authority of $104 million is also requested
for 1967 to finance the second installment of the 3-year, $312 million
increase in the U.S. subscription to the International Development
Association, an affiliate of the World Bank. The $104 million U.S.
contribution will be accompanied by contributions of $146 million
from other developed countries. Legislation will be sought to
authorize additional contributions to the IDA when future needs and
an appropriate sharing formula have been determined. Both the
IDA and the IDB's Fund for Special Operations were set up to make
long-term loans to developing nations, repayable on relatively easy
terms.
Legislation will be proposed to authorize the United States to become a charter member of the Asian Development Bank—to be
formally established in 1966—and to subscribe $200 million of the
Bank's $1 billion capital stock. The budget includes new obligational
authority of $120 million for 1966 and $20 million for 1967 for this
purpose. Of the 1966 request, $100 million will be held in the U.S.
Treasury as backing for borrowing by the Bank in private capital
markets. No expenditures against these funds are now contemplated.
The remaining $20 million in 1966 and the $20 million in 1967 will
provide the first and second of five equal annual installments toward
the U.S. share of the Bank's paid-in capital. Expenditures are
estimated at $10 million in each year.
The Export-Import Bank will continue its efforts to expand U.S.
exports. Its insurance and guarantee programs—undertaken in
cooperation with insurance companies and commercial banks—by
the end of 1967 will protect more than $1.7 billion of U.S. exports
against both political and commercial risks. Its direct loans to foreign
borrowers to pay for U.S. exports are expected to increase from
$403 million in 1965 to $658 million in 1966 and $906 million in 1967.
Sales to private buyers of $1 billion in loans and certificates of participation in the Bank's portfolio of loans will contribute to an estimated net excess of Bank receipts over expenditures of $309 million in
fiscal year 1967.




90

THE BUDGET FOR FISCAL YEAR

1967

The Peace Corps is expected to continue to expand the number of
volunteers overseas or in training in response to requests from foreign
nations for their services. Peace Corps volunteers will be active in
about 46 countries in 1967. This budget provides for 16,000 volunteers and trainees by the end of 1967, compared to an estimated
14,500 in 1966. Expenditures are estimated to increase to $88
million in 1967.
Food for Peace.—The Agricultural Trade Development and
Assistance Act of 1954 (Public Law 480) is the foundation of the
existing Food for Peace program, through which U.S. agricultural
abundance is used to feed hungry people and promote economic
development abroad. However, food production in the developing
countries has not been keeping pace with the requirements of expanding populations. Legislation will be proposed to authorize a new
Food for Peace program. The new program will be closely coordinated with economic assistance directed at increased agricultural
production in the less developed countries themselves.
About two-thirds of the existing Food for Peace program consists
of sales of agricultural commodities to foreign nations for their own
currencies. The local currencies are then available in the recipient
countries to pay U.S. obligations, to finance loans to U.S. private
enterprise, and to support local development projects. Most of
these currencies are inconvertible, and considerable balances are lying
idle in a number of countries. In order to use these currencies more
effectively, special foreign currency authorizations are proposed for
applying these balances to specific worthwhile projects serving U.S.
program objectives.
The proposed new program contemplates, for future years, an
increased emphasis on sales under long-term, dollar-repayable credits.
Grant programs will also be continued.
The total volume of commodities shipped under the Food for Peace
program in 1967 is expected to increase above 1966 levels. Expenditures, however, are estimated to decline by $162 million from 1966,
reflecting lower export prices resulting from the cotton and wheat
legislation enacted last year.
Shipment of commodities abroad through private welfare agencies,
authorized by section 416 of the Agricultural Act of 1949, as amended,
is sometimes considered a part of the Food for Peace effort. Expenditures for this program, which are classified under agriculture and
agricultural resources, are estimated at $200 million in 1967.
Foreign information and exchange activities.—The Department of State and the United States Information Agency conduct




THE FEDERAL PROGRAM BY FUNCTION

91

activities aimed at improving mutual understanding with other
peoples. Expenditures for the information and related programs of
the United States Information Agency are expected to increase by $8
million in 1967, reflecting expanded activities in support of U.S.
objectives in Southeast Asia.
SPACE RESEARCH AND TECHNOLOGY
In a relatively short time, the Nation has made remarkable progress
in forging the tools needed to extend man's knowledge and use of
space. Development programs initiated in prior years are now providing the Nation with manned and unmanned space systems of
great versatility. Our task is to use these new tools wisely, carefully choosing our priorities in space in the context of overall national
policy objectives.
The effort to achieve a manned lunar landing by the end of the
decade continues to be the largest element of our space program.
This accomplishment will demonstrate man's effectiveness in exploring
space; it will significantly expand our knowledge of the moon; and it
will provide vehicles, facilities, and experience required for future
manned space operations. In addition, increasingly complex unmanned spacecraft will assist in analysis of the space environment,
in exploration of the solar system, and in the collection of meteorological data.
Expenditures in 1967 are estimated at $5.3 billion, a decline of
$300 million from 1966—the first decline since the National Aeronautics and Space Administration was established. This decrease
is possible for several reasons. The major systems required for the
manned lunar landing will be progressing beyond the most costly
phase of the development cycle, and the scope of the program for
1967 has been selectively formulated in accord with the overall priorities. In addition, careful attention to cost reduction actions
and advanced management practices have increased the efficiency
with which our space dollars are used.
Manned space flight.—Over two-thirds of the 1967 expenditures
will be devoted to manned space flight activities. In 1967, the Saturn
V rocket, generating over 16 times the thrust of the Titan rockets
currently used in the Gemini program, will be launched for the first
time, carrying an unmanned Apollo spacecraft. This combination
of the Saturn V and the Apollo spacecraft is being developed for the
manned lunar mission. Using smaller Saturn IB vehicles, the Apollo
spacecraft will also fly manned missions in earth orbit to prepare
for the manned lunar mission and to conduct a variety of other
scientific and operational experiments.




92

THE BUDGET FOR FISCAL YEAR 1967
SPACE RESEARCH AND TECHNOLOGY

Program

Payments to the
public
1965

Administrative Budget Funds:
Manned space flight
_
_
Scientific investigations in space
Meteorology and other space applications
Other research, technology, and supporting operations
Subtotal, administrative budget
Trust Funds

Total

- _-

-

1966

1967

$3,538
662
89
804

$3,810
735
101
954

$3,600
656
100
944

5,093
*

5,600
*

5,300
*

5,093

5,600

5,300

Recommended
new obligational
authority

$3,388
605
101
919
1

5,012
*
5,012

'"Less than one-half million dollars.
Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $5,250 million; 1966, $5,175 million.
Trust funds: 1965. $1 million.

1

The highly successful two-man Gemini program has been providing essential information on the techniques of space maneuver and
rendezvous and significant scientific data, including the effects on
men of lengthy exposure to the space environment. NASA's Gemini
program will be concluded during 1967 but the Department of Defense
will continue to use the Gemini spacecraft in the manned orbiting
laboratory program.

Scientific investigations in space.—Extensive unmanned exploration of the moon will be undertaken in 1967 to obtain important
scientific data in preparation for manned Apollo missions. The Surveyor spacecraft is designed to land on the moon and transmit television pictures of its surface to the earth, while the Lunar Orbiter is
expected to provide clear pictures of a large number of possible Apollo
landing sites.
Scientific investigations nearer earth will be continued with large
geophysical observatories and small solar observatories and explorer
satellites. Large unmanned astronomical observatories will be in
orbit in 1967, enabling astronomers—for the first time in history—
to observe the universe free from the distorting effects of the earth's
atmosphere.
Funds are also provided to continue the program of unmanned
planetary exploration by sending Mariner spacecraft to Venus in 1967
and to Mars in 1969. The Mars mission will obtain additional vital
information for development of the much larger Voyager spacecraft
looking toward a landing on Mars in the 1970's.




THE FEDERAL PROGRAM BY FUNCTION

93

Meteorology and other space applications.—Development of
new sensors and techniques for eventual application in improved
meteorological satellite systems will continue. The Nimbus satellite
will provide flight tests of these improvements.
Flights of the Applications Technology Satellite will begin in calendar year 1966 for a variety of space applications experiments.

Other research, technology, and supporting operations.—
Continuing programs of aircraft technology and advanced research
and development directed toward future space missions will be carried
on during 1967. NASA will also continue to provide colleges and
universities with grants for facilities, research, and training of advanced degree candidates in fields related to space sciences. In addition, funds are included in the budget for the installation and operation of ground equipment necessary to track and acquire data from
spacecraft.
AGRICULTURE AND AGRICULTURAL RESOURCES
The Food and Agriculture Act of 1965 continues the shift in emphasis
in the Nation's farm program from supporting prices at high levels
through commodity purchases and loans to direct payments to farmers
as a means of maintaining farm income. This trend began with the
1961 feed grain program.




94

THE BUDGET FOR FISCAL YEAR 1967
AGRICULTURE AND AGRICULTURAL RESOURCES
[Fiscal years.

In millions]

Program or agency

Payments to the
public

Recommended
new obligational
authority
for 1967

1965
actual
Administrative

Budget

1966

1967

$2,646

$2,250

$2,164

$2,490

203
23
35
41

188
38
75
34

273
92

321
94

126

134

320
47
3
41
186
85
143

353
37
60
13
216
80
144

3,438

3,134

2,989

3,394

392

382
-189

392
-196

317
-305

104

110

109

109

213
24

222
43

195
44

100
30

285

100

-4
-600
-8

86

Funds:

Farm income stabilization:

Price support, supply, and purchase programs
Conservation reserve, cropland conversion, and cropland adjustment programs
National Wool Act
.
International Wheat Agreement
Transfer of commodities to supplemental stockpile
Removal of surplus agricultural commodities
Sugar Act
Other
Subtotal
Financing rural electrification and rural telephones:

Present programs
Proposed legislation
Agricultural land and water resources:

Soil Conservation Service—conservation operations
Agricultural conservation program payments (including CCC loan)
Other
Financing farming and rural housing:

Farmers Home Administration:
Present programs
Proposed legislation for pool participation sales...
Farm Credit Administration

-17

-10

457

522

519
-68

514
-73

4,313

3,372

M.172
132

Research and other agricultural services:

Present programs
Proposed legislation for inspection fees
Subtotal, administrative budget .
Trust Funds (mainly federally sponsored farm credit
institutions)

927

600

623

Intragovernmental transactions and other adjustments
(deduct).._
-

472

315

351

5,353

4,598

3,645

Total.
1

Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $4,253 million; 1966, $5,895 million.
Trust funds: 1965. $30 million; 1966, $31 million.




THE FEDERAL PROGRAM BY FUNCTION

95

The 1965 farm legislation also gives increased recognition to (1) the
need to provide the Secretary of Agriculture with greater discretionary
authority to adapt farm commodity programs to changing conditions
affecting farm production and income and (2) the need to deal with the
problems of commercial farmers on a different basis from the problems
of low-income farmers and other low-income rural people.
The 1967 budget reflects greater use of the services of the Department of Agriculture in assisting eligible rural people to participate
more fully in Federal programs to broaden the opportunities of all
low-income people for a better life. The recently established Rural
Community Development Service in the Department is being expanded
to help in this effort by providing information to other Federal
agencies and assistance to local communities. The Department will
also participate with other agencies and local representatives in establishing pilot multi-county development districts to provide
effective area-wide planning of health, educational, and other programs to improve rural life.
Payments to the public for agricultural programs in 1967 are estimated at $3.6 billion, down $953 million from 1966. Most of this
reduction reflects proposed legislation to make possible the substitution
of private for public credit by authorizing the sale of participations
in direct loans made by the Farmers Home Administration.
Farm income stabilization.—Expenditures
in 1967 for farm
income stabilization (excluding Food for Peace expenditures) are
estimated at $3.0 billion, $145 million less than in 1966. Increased
expenditures under the wheat program and expenditures for the new
cropland adjustment program are expected to be more than offset by
lower expenditures on programs for other commodities, particularly
feed grains and cotton.
Expenditures of $170 million are estimated in 1967 under the cropland adjustment program, which combines cropland diversion with
incentives to shift land to more desirable uses. Participation is
restricted to farmers who agree to divert all of their base acreage for
cotton, feed grains, or wheat. A part of the budgetary costs of the
regular farm commodity programs will, therefore, be absorbed by
expenditures under this program, which also includes expenditures for
Federal sharing of the costs of diverting cropland to recreational and
other uses.
In the past, changes in the level of commodity inventories of the
Commodity Credit Corporation were a fairly reliable index of changes
in the budgetary cost of the principal farm commodity programs.




96

THE BUDGET FOR FISCAL YEAR 19 67

With the shift in emphasis from price supports and commodity
acquisitions to direct income payments to farmers who comply with
acreage restrictions, CCC inventories have lost much of their earlier
significance. For most farm commodities, these inventories are now
at a much lower level than in the early 1960's, with the exception of
cotton; under the 1965 farm legislation, cotton stocks are also expected
to decline. One significant result of these developments is that U.S.
contributions of food as a part of our international Food for Peace
program will be increasingly dependent on current farm production
rather than on accumulated stocks.
A National Advisory Commission on Food and Fiber, appointed in
November 1965, is reviewing present farm programs as a part of its
broader assignment to make a penetrating appraisal of our agricultural and related foreign trade policies. Its recommendations, expected by mid-1967, will provide a basis for the consideration of needs
for further farm legislation.

Financing rural electrification and rural telephones.—The
Rural Electrification Administration is continuing to emphasize 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.
New obligational authority of $12 million is recommended for the
electrification and telephone programs in 1967. This reduction of
$462 million from 1966 assumes early enactment of proposed legislation authorizing the use of collections on outstanding loans to help
finance new loans, with continued control through the appropriations
process. Under this legislation, estimated collections of $189 million
in 1966 and $196 million in 1967 will be available to finance these
loan programs. These funds, along with those available from previous
years, will permit the Rural Electrification Administration to make
loan commitments of $270 million in 1967 for the electrification program and $85 million for the telephone program. Remaining funds
will be available for loans in later years.
Efforts are underway to develop alternative means of financing the
rural electrification program.
Agricultural land and water resources.—Expenditures in 1967
for technical assistance to aid farmers in installing conservation practices on their farms are estimated at $109 million, about the same
as in 1966. The budget also includes funds for grants and technical
assistance to 20 presently authorized resource conservation and
development pilot project areas and planning assistance for additional
areas. The objective of this program is to promote the economic




THE FEDERAL PROGRAM BY FUNCTION

97

growth of rural areas through the conservation and development of
their natural resources.
Expenditures in 1967 under the agricultural conservation program
will stem mainly from the $220 million authorization enacted by the
Congress for the 1966 program year. The Secretary of Agriculture
has instituted procedures to screen more closely the kinds of practices
for which cost-sharing will be made available, with the view of coordinating conservation aids with the Government's production adjustment and income support objectives. New obligational authority
of $100 million is proposed for the 1967 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 effects on stimulating the immediate output of
farm commodities.
Financing farming and rural housing.—The Farmers Home
Administration provides direct loans and insures private loans to meet
special credit needs associated with farming, rural housing, rural water
and sewer facilities, and related rural problems. The total volume of
loans to be made directly or insured by the Farmers Home Administration in 1967 is estimated at $1.2 billion, an increase of $149 million
over 1966. Loans to private associations and public bodies for sewer
and water facilities will rise. In addition, the Farmers Home Administration will make an estimated $33 million of grants in 1967 for
housing of domestic farm labor, repair and improvement of dwellings
of low-income rural residents, and water and sanitary facilities in rural
areas. While the program level is expected to be higher in 1967 than
in 1966, expenditures under existing legislation are estimated to be
$104 million lower, mainly because of increased emphasis on insured
loans.
The budget also includes proposed legislation to authorize sales of
certificates of participation in direct loans made by the Farmers Home
Administration and thus provide a new private source of funds for
financing rural credit requirements. Under this legislation, sales of
$600 million in certificates of participation are estimated in fiscal year
1967. As a result, receipts from these sales and other sources will
substantially exceed FHA expenditures in 1967.

Research and other agricultural services.—Estimated expenditures for research and other agricultural services in 1967 are $452
million compared with $522 million in 1966. Included are expenditures for construction of facilities at livestock research stations, for
increased grants and contracts for research, for the staffing of newly
constructed research laboratories, and for economic research and
extension work in Appalachia. Additional expenditures are proposed
200-000 0—66




7

98

THE BUDGET FOR FISCAL YEAR

1967

to meet workload requirements on plant and animal inspection and
quarantine and pesticide registration, and for urgent disease and
pest control programs. Funds for extension education will be
shifted to emphasize work with low-income families and resource
development.
Increased expenditures are offset by the curtailment of low priority
research at 69 locations, a decrease in payments to State experiment
stations, and the elimination of certain plant and animal disease and
pest control work.
Legislation is again proposed to finance the cost of Federal meat
and poultry inspection activities and certain other inspection and
grading activities through a system of user charges. Receipts from
these user charges are estimated at $68 million in 1967.
NATURAL RESOURCES
The United States is fortunate in having the natural resources
required to meet the needs of an increasing population and a growing
economy. The budget recommendations for fiscal year 1967 provide
for the most essential Federal activities needed to carry forward the
development and efficient use of these resources. Payments to the
public in 1967 for the conservation and development of natural resources are estimated at $3.0 billion, an increase of $127 million over
1966.
Land and water resources.—A large part of the $2.1 billion of
estimated 1967 expenditures for land and water resources represents
an investment in assets that will yield benefits for years to come.
Most of these expenditures are for the construction and operation of
water resources projects which provide navigation, flood control,
irrigation, water supply, and power benefits, as well as recreational
opportunities.
Water resources planning.—The Nation cannot afford to be without
sound plans to meet the expanding demands for clean and adequate
water supplies, particularly for the increasingly urgent needs of urban
areas. The Water Resources Planning Act of 1965 provides additional
tools to help resolve the complex problems involved in water resources
planning. This Act created a Water Resources Council to improve
coordination of Federal water resources activities and authorized
establishment of joint Federal-State river basin planning commissions.
It also provided for financial assistance to the States for water resources planning.
With funds appropriated for 1966, two river basin planning commissions are expected to be established. The 1967 budget provides funds




99

THE FEDERAL PROGRAM BY FUNCTION
NATURAL RESOURCES
[Fiscal years.

In millions]

Program or agency

Payments to the
public

Recommended
new obligational
authority
for 1967

1965
actual

1966

1967

$1,169

$1,245

$1,290

$1,290

328

323

304
2

299
3

63

94
-66

Administrative Budget Funds:
Land and water resources:

Corps of Engineers
___
Department of the Interior:
Bureau of Reclamation:
Present programs
Proposed legislation
Power marketing agencies:
Present programs
Proposed legislation
Office of Saline Water..„
Bureau of Indian Affairs
Bureau of Land Management and other
Tennessee Valley Authority
Soil Conservation Service—watershed projects.
International Boundary and Water Commission.
Federal Power Commission and other
Subtotal

11
119
65
48
91
14
14

16

131
-70
22

101
70
57
102
26
15

118
70
84
103
24
19

-45
31
126
74
64
99
13
19

1,922

1,985

2,098

2,110

353
21

400
21

387
22

374
22

4
130
120

68
126
123

77
127
123

114
123
121

47
58
94

53
66
84

88
86

53
83
89

2,750

2,920

3,062

74
60

70
74

59
83

103
83

134

144

142

M86

64

151

163

2,820

2,914

3,041

137

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

3,089

Funds:

Indian tribal funds_
Other
Subtotal, trust funds.
Intragovernmental transactions and other adjustments
(deduct)
Total.
1

1

Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $3,045 million; 1966, $3,119 million.
Trust funds: 1965. $185 million; 1966. $179 million.




100

THE BUDGET FOR FISCAL YEAR

1967

for the Federal share of the cost of an additional commission to be
established in 1967 and for the initial planning grants to the States.
The United States will initiate a cooperative international effort to
help find solutions for the world's water problems. The program is an
effective expression of the deep interest of this country in sharing with
other nations its knowledge of the development and use of water
resources. The International Hydrological Decade now underway
will provide the scientific basis for this program and improve the
worldwide knowledge of water resources. The United States plans
to sponsor an international conference to consider these problems.
Water and related power developments.—Most of the new obligational
authority recommended for water resources in 1967 will be for continuation of construction on projects started in prior years. These
projects are being funded at minimum rates consistent with orderly
construction progress.
In addition, the budget includes $9 million of new obligational
authority for the Corps of Engineers to start construction on 25 new
projects, compared with 41 new starts proposed last year for 1966.
Additional funds are included to begin advance planning on 27 projects
to be constructed in later years. In line with recent legislation, funds
recommended in the 1967 budget for the Corps of Engineers floodplain information program are double the amount provided in 1966.
Studies conducted under this program will help State and local
governments and private citizens make more appropriate use of floodplain lands without unnecessary exposure to flood damage and loss of
life.
New obligational authority recommended for the Bureau of Reclamation includes funds to initiate three large projects and one small
project. The Auburn-Folsom South Unit in California and the
Garrison Diversion Unit in North and South Dakota have already been
authorized. Legislation is pending to authorize the third large
project, an additional power plant at Grand Coulee in Washington.
The Tennessee Valley Authority will begin construction of the
Tellico multiple-purpose project, the Bear Creek project, and a steamplant unit. Expenditures on these projects are estimated at $26 million in 1967. Planning will be started on an additional steamplant
unit. New borrowing authority will be necessary by fiscal year 1968
to insure availability of funds to build this unit and other future power
facilities. To allow consideration of the proposal, legislation will be
sent to the Congress this year.
New obligational authority recommended for the watershed protection program of the Soil Conservation Service in the Department of
Agriculture will permit the starting of construction on 35 new projects
in 1967, compared with 80 projects in 1966.




THE FEDERAL PROGRAM BY FUNCTION

101

Expenditures of the Bonneville Power Administration (BPA) are
estimated to increase by $36 million to $120 million in 1967. This
increase is for continued construction of the Pacific Northwest Southwest Intertie transmission system and the high-volt age backbone
grid system in the Northwest. The BPA recently increased its power
rates to keep the system on a financially sound basis. Legislation
proposed last year is again recommended to allow the Bonneville,
Southeastern, and Southwestern Power Administrations to use revenues from the sale of power, with continued control through the
appropriations process, to finance capital outlays and operating costs
on a basis consistent with other business enterprise activities of the
Federal Government. Revenues from the sale of such power are
currently deposited in miscellaneous receipts of the Treasury.
The Office of Saline Water will spend $22 million in 1967 to continue
research and development work on desalting sea and brackish water
for municipal and industrial use. Construction of a distillation
unit will be continued at the west coast test center in order to advance
the technology of large-scale conversion plants. In addition, cooperative arrangements are being explored with various non-Federal
groups for the possible construction of a fully operational prototype
desalting plant.
Public domain and Indian lands.—Receipts from management of the
grazing and forestry lands and from mineral leasing activities on the
public domain lands are estimated at $119 million in fiscal year 1967.
Of this amount, $77 million will be paid to States and counties in
which the lands are located. Receipts from mineral leasing of the
Outer Continental Shelf lands are estimated at $400 million in 1967.
Expenditures in 1967 for resources management, construction and
maintenance of facilities, and roads and trails on the public domain
are estimated at $62 million, about the same as in 1966.
The 1967 budget will enable the Bureau of Indian Affairs to make
further progress in meeting the urgent need for new school facilities
for Indian children. The $47 million of new obligational authority
for planning and construction of schools in 1967—double the amount
provided in 1966—is the minimum needed. All the schools for which
construction funds are recommended must be started in 1967 to meet
the rapid growth of the Indian school-age population, the obsolescence
of existing facilities, and the overcrowded conditions that prevail in
some locations.
Under the Elementary and Secondary Education Act of 1965, payments are made to States by the Office of Education for children of
school age, including those who attend Federal Indian schools. An
amendment to this Act is being recommended to provide that the
funds for these Indian children be allocated to the Bureau of Indian




102

THE BUDGET FOR FISCAL YEAR 19 67

Affairs in those cases where the Bureau is responsible for their schooling, instead of being paid to the States.
Expenditures of $76 million in 1967 will provide for irrigation
development on Indian reservations, for road construction and maintenance, and for continuation of efforts to expand industrial activities
and improve housing. Indian tribal trust funds are used to supplement expenditures for various activities on the reservations.
Forest resources.—The 182 million acres of national forest lands
now supply about one-quarter of the timber consumed by American
industry. In addition, these forests provide outdoor recreational
facilities for a large segment of our population. Expenditures by the
Forest Service for recreational facilities in the forests will increase
by $3 million to $36 million in 1967 to help provide for the increasing
number of visitors. The number of visitors to our national forests is
estimated to increase from 144 million in 1965 to 169 million in 1967.
Visitors to Federal Recreation Areas
Million*

50-

Recreational resources.—The Bureau of Outdoor Recreation will
continue the development of a nationwide Outdoor Recreation Plan.
Grants of $69 million from the Land and Water Conservation Fund
will be made to States in 1967 to assist in acquiring land and water
areas, and in planning and developing areas for public outdoor recreation purposes. The Fund will also be used to enable the National




THE FEDERAL PROGRAM BY FUNCTION

103

Park Service, Forest Service, and Bureau of Sport Fisheries and Wildlife to acquire areas for outdoor recreation purposes and for the
preservation of endangered wildlife species.
Pending legislation should be enacted to authorize the national park,
seashore, and lakeshore areas recommended to the Congress in a
message on Natural Beauty last year. Legislation is recommended
to extend Federal support to the famous Appalachian Trail which
provides a hiking path from Maine to Georgia. Authorization will be
sought for studies of means to encourage the development of hiking
trails accessible to people in other parts of the country. Upon enactment of legislation being recommended to authorize a Redwoods
National Park in northern California, the Land and Water Conservation Fund will be used to initiate the acquisition of land for this park.
Expenditures of $127 million by the National Park Service in
fiscal year 1967 will provide for the management and development of
the scenic, historic, and recreational resources of the 230 areas in the
national park system. Visitors to these areas are estimated to increase from 111 million in 1965 to 128 million in 1967.
Fish and wildlife resources.—In 1967, the Bureau of Sport
Fisheries and Wildlife will operate 90 Federal fish hatcheries for
propagation of food and game fish and 304 wildlife refuges in the 50
States, including 14 new refuges. River basin studies will be made
to design measures to protect the fish and wildlife affected by water-use
projects of other Federal agencies.
Three new research and exploratory fishing vessels will be completed
by the Bureau of Commercial Fisheries in 1967. Assistance to the
fishing industry will be continued through support of research and
development, including grants to States; economic and market studies;
fishing vessel construction subsidies; and loans.
Mineral resources.—The Bureau of Mines will place increased
emphasis in 1967 on research to help improve the natural environment and at the same time contribute to the economic expansion of
the Nation's mineral base. Research on prevention of solid mineral
wastes will be strengthened by further work on two demonstration
plants for conversion of junk automobiles into products usable by the
steel industry. An important element of one of these processes will be
to make more low-grade iron ore useful for steel production. The
Bureau will also expand its work on air pollution in relation to the
economics of fossil fuels and minerals.
General resource surveys.— The Geological Survey and other
agencies will play an important role in the International Hydrological
Decade—a 10-year program for cooperation in scientific hydrology




104

THE BUDGET FOR FISCAL YEAR

1967

which will improve understanding of continental and global water
resources. In addition, the Geological Survey will continue its analysis of the earth's crust and the upper mantle, which is of fundamental
importance to prediction of earthquakes. Studies of river basin and
ground water resources will be of significant value in planning the
construction of river basin projects.
COMMERCE AND TRANSPORTATION
The Federal Government in 1967 will continue to strengthen and
improve its technical and financial services to business, to stimulate
the development of depressed geographical areas, and to improve
major nationwide transportation and communication services. Continuing efforts will also be made to promote both the public and private
interest by helping to maintain effective competition and by regulating
certain key industries.
In 1967, payments to the public for commerce and transportation
programs will total an estimated $6.6 billion. Well over half of these
payments represent trust fund expenditures for federally aided highways financed primarily from highway user taxes. The 1967 total is
$418 million less than the estimated payments for 1966. This decrease
results primarily from (1) sales of private participations in a proposed
pool of Small Business Administration loans; (2) the termination of
the temporary accelerated public works program started in 1963; and
(3) lower expenditures for the postal service. These decreases more
than offset increased expenditures for other economic development
programs and several other activities.
Advancement of business.—The Department of Commerce assists
business enterprise mainly through aids to civilian research and
technology, export promotion, and patent services, and through providing weather and related environmental data, census materials, and
other economic, commercial and trade information. The Small
Business Administration provides loans and special services to small
businesses. Because of the substitution of private for public credit,
expenditures for these programs are expected to be $451 million lower
in 1967 than in 1966.
Scientific and technical information.—Information of a scientific
and technical nature developed through the activities of Federal
agencies makes a major contribution to the Nation's economic progress. The 1967 budget for the National Bureau of Standards provides
additional funds to make technical information available in more
useful form through increased emphasis on critical evaluation of
scientific data and the development of performance standards. In
addition, efforts will be made to achieve greater standardization in




105

THE FEDERAL PROGRAM BY FUNCTION
COMMERCE AND TRANSPORTATION
[Fiscal years.

In millions]
Recommended
new obligational
1967
authority
estimate for 1967

P a y ments to the

public

Program or agency
1965
actual

Administrative Budget Fatids:
Advancement of business:
Department of Commerce:
National Bureau of Standards
Office of State Technical Services
Environmental Science Services Administration
Other aids to business
Small Business Administration:
Present programs
Proposed legislation for pool participation sales
Alaska Railroad and other
Area and regional development:
Department of Commerce
Public works acceleration program and other
Aviation:
Federal Aviation Agency
Civil Aeronautics Board—subsidies
Water transportation:
Department of Commerce
Coast Guard
Interoceanic Canal Study Commission and other
Highways:
Appalachian highways
Other highway programs
^
Postal service
Regulation of business

$44
6
160
118

15

305
-350
44

60
-545
5

76
322

90
127

183
9

373
1

795
80

800
79

840
73

758
75

337
386
4

330
410

297
454
5

299
493
6

20
57
878
101

102

130

39
805
98

755
104

836
105

3,499

3,202

2,672

4,026

3,970

18
-180

29
-220

3,970
110
38
-223

3.864

3,780

3,895

-59

-57

-53

7,421

7,038

6,620

134
100
243

..

Trust Funds:
Department of Commerce:
Highway trust fund:
Present programs
Proposed legislation
Other
Federal Deposit Insurance Corporation.
Subtotal, trust funds
Intragovernmental transactions and other adjustments
(deduct)

1

$59
2
142
98

$64

Subtotal, administrative budget.

Total.

1966

Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $3,269 million; 1966, $3,908 million.
Trust funds: 1965, $3,901 million; 1966, $4,109 million.




$34
8
165
128

1

3,421

4,030
283
42
1

4,355

106

THE BUDGET FOR FISCAL YEAR 1967

the field of automatic data processing by providing additional funds
for the new Center for Computer Sciences and Technology. In spite
of these program increases, expenditures by the National Bureau of
Standards will decrease in 1967 by $15 million to a total of $44 million
as the new laboratory complex in Gaithersburg, Md., is completed.
Expenditures for the new Office of State Technical Services are
estimated to be $6 million in 1967, its first full year of operation. This
is an increase of $4 million over 1966. This office administers a program of matching grants which support State and regional centers for
making the findings of science more useful and easily available to
American enterprise.
Environmental science services.—The 1967 budget of the new Environmental Science Services Administration provides for improvements
in the system for warning the public of natural environmental hazards.
The focus initially will be on the tornado alley in the Midwest.
Additional weather surveillance radars will be installed and communications facilities provided to convey disaster warnings more rapidly
and to more communities. Research and development efforts,
particularly in weather modification and prediction, will also be
expanded. Replacement of an obsolete coast survey vessel will
improve both the quality and quantity of tide and current data along
our coasts. By 1967 the Tiros weather satellite system is expected to
be fully operational and will provide twice-daily reports of global
weather conditions. These and other improved services are expected
to increase Environmental Science Services Administration expenditures to $160 million in 1967, $18 million more than in 1966.
Other Commerce aids to business.—The budget provides added funds
in 1967 for the Department of Commerce to step up substantially
its efforts to increase the number of foreign visitors to this country.
Greater efforts will also be made to increase the number of American firms exporting their products.
Expenditures for high-speed ground transportation research and
development in the Department of Commerce are estimated at
$17 million in 1967, an increase of $13 million over 1966. Full-scale
demonstration and evaluation of improved rail passenger service in
the northeast corridor will begin early in 1967 as new passenger cars
are delivered. Investigation and testing of new technology for materials, power and control systems, and guideways will also be conducted.
Patent Office expenditures are estimated to rise by $2 million in
1967, in order to permit a further reduction in the backlog of pending
patent applications. Dispositions of patent applications are projected
at 102,000 in 1967, which is 2,000 more than in 1966. Development




THE FEDERAL PROGRAM BY FUNCTION

107

will continue on automated systems for microfilming, storing, and
retrieving patent and related information. Beginning in 1969,
when these systems become fully operational, savings will be about
$500,000 per year. Recently enacted legislation authorizes higher
fees and charges for patent services; total receipts will amount to
$25 million in 1967, $16 million more than in 1965.
The Census Bureau will continue work on plans for using mail surveys more extensively in the 1970 decennial census. Self-enumeration techniques combined with more modern automatic data processing
equipment will provide more reliable data and will permit the greater
workloads to be handled at lower unit cost than previous censuses
of this type. Savings of $2 million already have been realized through
the use of automation and improved procedures in the Census of
Agriculture. Total expenditures of the Census Bureau in 1967 will
remain at the 1966 level of $27 million.
Small business.—The Small Business Administration will increase
its financial aid and other assistance to small businesses in 1967.
Wherever possible, private credit will be enlisted through Government loan guarantees, bank participations, and sales of participations
in pools of Small Business Administration loans. Enactment of
legislation is again recommended to authorize such sales. Receipts
from this source, estimated at $350 million in the closing months of
1966 and $850 million in 1967, will finance loans of about $300 million
which would otherwise have required appropriations, as well as provide substantial funds for later years.
Many financial needs of small businesses can be met initially only
through direct Government loans. These include economic opportunity loans, which are estimated at $50 million in 1967, up $22 million
from 1966. Natural disaster loans are expected to total $100 million
in 1967. This is $105 million less than in 1966, a year of unusually
destructive major disasters. In addition, the budget provides for a
$10 million increase in loan commitments to local development companies and an additional $73 million for regular business lending in
1967.
Area and regional development.—Expenditures for economically
distressed areas under the Public Works and Economic Development
Act of 1965 will almost double in 1967 to $164 million as more projects
approved under this Act reach the construction stage. However,
appropriations requested under the new act are approximately the
same for 1967 as for 1966. The amounts estimated provide for a
new program to promote the development of industrial and commercial
centers in or near distressed areas where economic growth is most




108

THE BUDGET FOR FISCAL YEAR

1967

likely to succeed, benefiting both the center itself and the surrounding
areas. Also included are increased funds for regional action planning
commissions, to be established in 1966, for the purpose of preparing
specific regional plans.
Under the direction of the Appalachian Regional Commission,
established in 1965, the special development program for the 17%
million people of Appalachia is moving ahead rapidly. A system
of highways is under construction, natural resource programs have
been developed, and needed public facilities are being built in areas
with significant potential for growth. This Federal-State effort is
designed to eliminate the obstacles to prosperity which this region
has too long endured.
SPECIAL PROGRAMS TO DEVELOP APPALACHIA x
[Fiscal years.

In millions]

Program

Estimated
administrative
budget expenditures
1966

Highway construction
_ _ _
___ __ __
Conservation and development of natural resources._.
___ _
Vocational education and health activities
_.
__
Other developmental aids (including research and supplemental grants)
Total

1967

$20
10
4
6

$102
21
13
21

40

156

1
These programs are in addition to outlays in Appalachia under regular nationwide Government
programs.

Transportation.—Proposals are being made to improve and coordinate our present transportation programs. These changes will
pay dividends in terms of a safer and more efficient transportation
system, resulting in reduced costs to carriers, users, and taxpayers.
The 1967 program includes recommendations for: (1) establishment
of a Department of Transportation, (2) a highway safety program
reorganized and expanded to reduce the appalling loss of life and
property damage resulting from highway accidents, (3) continued
research and demonstrations to improve inter-city high-speed ground
transportation and urban mass transit (discussed under Housing and
Community Development), and (4) development of a safe and
economical supersonic aircraft. These measures, and others to be
proposed, will be discussed in a separate message.
In fairness to the taxpayers and to encourage efficient use of Government-financed transportation facilities, the substantial benefits re-




THE

FEDERAL

PROGRAM

BY

109

FUNCTION

Commerce and Transportation - Program Trends

Patent*

Postal Volume

I

i

1

I

I

I

1

1

I

I

1

1

I

I

I

I

1

I

1

I

I

I

I

t

Federal-Aid Highways

F A A Operations
Million
50-

Thousands
-40

-20
Miles Added
or Improved

I

I

I

I

1956
m
Ft**! Yea*

I

I

I
62

I

1
64

I

I

I

I
1956

I
58

I

I
60

I

I
62

I

-10

I
64

I

I

\

66 67
Estimate

ceived by travelers and shippers from Federal expenditures on highways, airways, and waterways should be paid for by the users of these
facilities in larger measure than is now the case. Accordingly,
recommendations are being made for new or increased transportation
user charges; these recommendations are discussed in Part 3 of this
budget.
Aviation.—The Federal Aviation Agency is continuing its efforts to
provide better and safer airways services at lower cost by (1) improving the productivity of its employees and (2) eliminating or curtailing
facilities and services which are of marginal usefulness. Partly as a
result of these efforts, total appropriations for the Agency will decline
by $110 million in 1967 to a level of $758 million. Expenditures,
however, will increase from an estimated $800 million in 1966 to $840
million in 1967, primarily because of research and development on the
civil supersonic transport aircraft.




110

THE BUDGET FOR FISCAL YEAR 1967

During the past year, competing manufacturers have made progress
toward solving the technical problems of building a civil supersonic
transport aircraft. Congressional approval will be requested for a
joint Government-industry program to build a prototype aircraft.
Engine and airframe manufacturers are expected to be selected in
1967 following a comprehensive evaluation of competing proposals.
The Federal Aviation Agency has developed the National Airspace
System (NAS) which uses semiautomatic devices to increase the
reliability and efficiency of air traffic control and reduce operating
costs. Appropriations from prior years will finance six NAS installations; funds in the 1967 budget will finance another NAS installation
as well as other airways improvements.
This budget proposes a reduction in the funding of grants-in-aid for
airports from $75 million in 1966 to $50 million in 1967. By continuing to give priority to airports which primarily serve interstate air
transportation, the amount for 1967 will provide improvements
essential to national air commerce.
Expenditures for payments by the Civil Aeronautics Board to air
carriers are estimated at $73 million in 1967, a decrease of $6 million
from 1966. This decline is the result of increases in air traffic, carrier
economies, elimination of subsidies to helicopter operators, the Board's
policy of terminating service at very low traffic points., and continued
refinements of the Board's subsidy control plan.
Water transportation.—Expenditures by the Department of Commerce for assistance to ocean shipping will amount to $297 million in
1967, a decrease of $33 million from 1966. Vessel operating subsidies
will remain at about the 1966 level as Government charter of subsidized vessels for worldwide shipping will continue unchanged.
Funds will be provided for the construction of 13 new vessels as part
of the continuing program for replacement of old vessels in the subsidized fleet. Beginning in 1967, appropriations for the purchase of old
vessels being traded in on newly constructed vessels will be requested
as the replacement ships are delivered rather than in the year construction is begun.
New obligational authority of $103 million is requested for the
acquisition, construction, and improvement of Coast Guard facilities
in 1967. This is $13 million less than 1966, but it is sufficient to permit
essential replacement of over-age vessels and facilities. With the
transfer of funding for five major icebreakers from the Navy in
1966, the Coast Guard assumes full responsibility for all U.S. icebreaking activities. Unification of this fleet under Coast Guard
command will result in more efficient use of vessels and other operating
economies. Total expenditures for all Coast Guard activities are
estimated at $454 million in 1967.




THE FEDERAL PROGRAM BY FUNCTION

HI

This budget also includes an appropriation of $6 million in 1967
for the Interoceanic Canal Study Commission. These funds will
permit substantial progress on the 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 cost of construction.
Highways.—Federal highway outlays, financed primarily from the
highway trust fund, will increase by $135 million in 1967 to $4.2
billion. Nearly three-quarters of this total is for the 90% Federal
share of the cost of the Interstate Highway System. The 41,000mile system, now more than half finished, is estimated to cost a total
of $46.8 billion, of which the Federal share is $42 billion. Most of
the remaining 1967 highway expenditures are for the primary and
secondary road programs. Legislation is being recommended to
extend these latter programs for 2 years at the current annual level
of $1 billion.
Legislation is also proposed to transfer financing of forest highways,
public lands highways, and the programs authorized by the Highway
Beautification Act-of 1965 to the highway trust fund.
The highway expenditures remaining in the administrative budget
are for a special developmental highway construction program for
the Appalachian region. These expenditures are estimated to increase
by $82 million to an estimated $102 million in 1967.
Revenues accruing to the highway trust fund under current legislation are insufficient to provide for (1) the currently estimated Federal
share of the cost of the Interstate Highway System, (2) an expanded
highway safety program, and (3) the programs proposed for transfer
to the trust fund. Therefore, legislation is again being requested to
increase highway user taxes. Legislation will also be proposed to
finantee highway beautification costs by transferring to the trust fund
receipts equal to 1 percentage point of the existing auto excise tax,
explicitly designated for this purpose.
Postal service.—Expenditures of the postal service in 1967 are
estimated to exceed postal revenues by an estimated $755 million.
This compares with $805 million in 1965 and an estimated $878
million in 1966. The decrease from 1965 results from operatingeconomies, actions to provide higher parcel post revenues, and increases
in the fees charged for several of the postal special services.
Significant improvements are planned in the quality of postal service
in 1967. In addition, ZIP code presorting by large mailers will result
in more direct distribution with fewer intermediate handlings of a
large portion of the mail. More electronic ZIP code readers will be
installed to expedite letter mail in several large offices. This is part of




112

THE BUDGET FOR FISCAL YEAR 1967

an accelerated program to install proven mechanization as rapidly as
possible to assist in handling the ever-increasing volume of mail.
HOUSING AND COMMUNITY DEVELOPMENT
The Department of Housing and Urban Development will take
primary responsibility for working with other Federal agencies and
with State and local governments to focus all available resources on
the problems of central cities and expanding suburbs.
Poor housing conditions and obsolete public facilities in large areas
of central cities still remain our most pressing urban development
problem. These conditions tend to breed poverty, crime, and disease.
A new program is proposed to show how local, State, and private
groups—assisted by the Federal Government—can undertake a major
renovation of blighted slum areas. Further details of this new
demonstration program are presented in a special message to the
Congress.
Net payments to the public for all housing and community development programs are expected to be $1.2 billion in 1967, a decrease of
$789 million from 1966. This decrease results primarily from lower
trust fund expenditures by the Federal National Mortgage Association.
On an administrative budget basis, total expenditures are estimated
to increase by $46 million in 1967, mainly for urban renewal and
community facility grants and housing loans under contracts made in
prior years. However, new obligational authority in 1967 will decline
primarily because sufficient authority for open space and FNMA
special assistance programs was provided in prior years.
Urban renewal and community facilities.—Expenditures for
urban renewal in 1967 are expected to be $413 million, up $51 million
from 1966, as continual progress is made on projects approved in prior
years. The Housing and Urban Development Act of 1965 and the
1966 Supplemental Appropriation Act have already provided $725
million for new urban renewal grant approvals in 1967, $50 million
above that provided in 1966. Increasing emphasis will be placed on
renewal of the city without wholesale clearance of large areas. The
authority enacted in calendar year 1965 to aid intensive housing code
enforcement in selected areas and the demolition of dangerous buildings throughout the city will be fully utilized. Authority will be
sought to use more of the available funds for grants to the poor in
urban renewal areas to help them repair their homes.
Improvement of the core areas of cities will be assisted by increasing
from $12 million in 1966 to $25 million in 1967 the new obligational
authority available to aid the construction of social service facilities
in low income neighborhoods. Expenditures in 1967 for construction of such facilities are estimated at $12 million.




113

THE FEDERAL PROGRAM BY FUNCTION
HOUSING A N D COMMUNITY DEVELOPMENT
[Fiscal years.

In millions]
Payments to the
public
1965
actual

Recommended
new obligational
authorit
lthonty
f, r 1967

1966

1967

79

$362
1
18
38
1
56

$413
12
30
68
51
72

$741
25
1
131
100
56

5
230

249

261

12
280

-115

116

-106

1

-392
-105
-42

-396
-308
75

38
-139

450

Administrative Budget Funds:
Urban renewal and community facilities:

Department of Housing and Urban Development:
Urban renewal
Neighborhood facility grants
Open space land grants
Urban mass transportation
Water and sewer grants
Other
Proposed legislation for pool participation sales of
public facility loans
Proposed legislation for demonstration cities
Public housing programs
Aids to private housing:
Department of Housing and Urban Development:
Federal Housing Administration
Federal National Mortgage Association:
Special assistance functions
Management and liquidating programs
Secondary market loans and stock purchase
Proposed legislation for pool participation sales
Housing for the elderly—direct loans
Urban renewal rehabilitation loans and other
. Federal Savings and Loan Insurance Corporation
National Capital Region:
District of Columbia
National Capital Transportation Agency and other
Subtotal, administrative budget

$324
6
11

36
-400

-450

64
24

80
9

41
1
-205

54
2
-262

61
2

65
6

111
15

-104

77

123

91
385
660
1

1,400
446
142

500
490
200
4

135
494

1,136

1,988

1,194

1635

125
-1

138
-55

189
-66

908

1,982

1,193

-352

104
26
1

1,565

Trust Funds:

Federal National Mortgage Association, secondary
market operations, net
District of Columbia municipal government
Federal home loan banks, net
Other
Subtotal, trust funds.
Intragovernmental transactions and other adjustments
(deduct):
District of Columbia
Other
Total.
1

Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $1,269 million; 1966, $1,793 million.
Trust funds: 1965, $513 million; 1966, $674 million.

200-000 O—(66—.—8




114

THE BUDGET FOR FISCAL YEAR 1967

Grants totaling $25 million, financed from new obligational authority enacted in 1966, will be approved in 1967 under the open space
land grant program for the creation of parks in the developed areas
of cities and to aid general programs for urban beautification. Under
the same program, $60 million will be available for the preservation
of some of the open space remaining in our central cities and expanding
suburbs. Expenditures, primarily for grants approved in prior years,
are expected to be $30 million in 1967.
The 1966 Independent Offices Appropriation Act provided $130
million for 1967, the same as for 1966, for mass transportation grants.
These grants are used mainly to help cities pay that portion of the
cost of constructing or acquiring mass transportation facilities which
cannot be recovered from fares. Legislation is requested to authorize
a $150 million program level for 1968 so that advance appropriations
for that year can be requested. These advance appropriations assure
communities that the program will be continued, thereby allowing
them ample opportunity for planning improvements in their transit
systems. Expenditures for mass transportation are estimated to
increase from $38 million in 1966 to $68 million in 1967, chiefly for
projects approved in prior years.
New obligational authority of $100 million is requested in 1967 for
grants to communities and metropolitan areas for water and sewer
facilities. The grants are available only to those communities which
(1) plan, jointly with other communities where necessary, for the
comprehensive development of the entire urban area involved and
(2) develop an adequate program for meeting the water and sewer
needs of that area. Expenditures for this purpose are estimated to
increase from $1 million in 1966 to $51 million in 1967, as work on
facilities approved in 1966 progresses.
To aid cities and metropolitan areas to carry on the comprehensive
planning needed to assure efficient and effective use of their own and
Federal community development programs, new obligational authority
of $35 million is requested for 1967 for urban planning grants, about
$8 million more than the amount appropriated for 1966.
In order to obtain more private financing for the public facility loan
program, legislation will be proposed to facilitate sales of participations in pools of loans. Sales of $80 million of pool participations
are expected in 1967.
Public housing programs.—Expenditures for public housing
programs are estimated to increase from $249 million in 1966 to $261
million in 1967, primarily because more units of locally constructed
low-rent public housing will be completed and occupied, requiring additional annual contributions to help local housing authorities repay the




THE FEDERAL PROGRAM BY FUNCTION

115

Housing and Community Development - Program Trends

Amount Outstanding

;.t

"*lV*

money borrowed for construction. New contracts to support 60,000
more publicly owned or leased homes for low income families are
expected to be approved in 1967, up 19,000 from 1966. The 1967
total includes contracts for the leasing by local authorities of 7,000
housing units from the private market and for acquisition and rehabilitation of 10,000 units. Disbursements for the low rent public
housing program will be offset somewhat by net receipts of $10 million from the sale of Government-owned housing and related facilities
in Los Alamos, N. Mex., as the Government gives up its exclusive control over that community.
Aids to private housing.—The established programs for aiding
private housing will continue to generate net receipts in 1967. These
receipts, estimated to total $836 million in 1967, will be about $117
million higher than in 1966.




116

THE BUDGET FOR FISCAL YEAR 1967

Federal Housing Administration.—The FHA is expected to shift
from net disbursements of $116 million in 1966 to net receipts of $106
million in 1967. This shift results chiefly from a temporary increase
in disbursements in 1966 caused by procedural changes which have
speeded up payment of insurance claims. In addition, new claims
received are expected to decrease—from $765 million in 1966 to
$741 million in 1967—because of fewer defaults on multifamily
mortgages. Finally, receipts from the sale of property and mortgages
owned by the FHA will rise from $565 million in 1966 to $597 million
in 1967. These receipts plus fees and insurance premiums will more
than offset total claim payments and administrative expenses in 1967.
Total insurance reserves will continue to increase.
Federal National Mortgage Association.—Net expenditures for the
special assistance functions are estimated at $38 million in 1967,
compared with net receipts of $396 million in 1966. Mortgage purchases will increase in 1967. Most of the increased purchases will be
in mortgages (bearing below-market interest rates) on housing for
those with incomes too high for public housing but too low to afford
available standard private housing. In addition, fewer sales of
mortgages are expected in 1967 than in 1966, because the supply of
mortgages suitable for direct sale to private investors will be substantially reduced in 1966. Also, it is estimated that $120 million of
certificates of participations in pooled mortgages will be sold in 1967
under existing legislation, compared with $355 million in 1966.
Because sufficient authority is available for the proposed 1967 special
assistance program, legislation is requested to cancel the $450 million
of new obligational authority becoming available in 1967.
The supply of mortgages in the management and liquidating functions suitable for sale either directly or by pooling will also be considerably reduced in 1966, and net receipts under existing legislation
are expected to be $139 million in 1967, a reduction of $169 million
from 1966. Most of the remaining mortgages in this and the special
assistance fund carry interest rates substantially below the present
market rate. As part of the Government-wide program to broaden
the private market for Government loans, legislation is proposed to
authorize supplementary funds where necessary to assure interest
payments on certificates of participation which are sold in pools of
such mortgages. Under this legislation, sales of an additional $400
million of participations in FNMA mortgages are planned in 1967.
The rate at which mortgages are offered to the FNMA secondary
Market operation trust fund in 1967 is expected to be substantially
lower than the record rate reached during part of fiscal year 1966.




THE FEDERAL PROGRAM BY FUNCTION

117

Only minor mortgage sales are expected in both 1966 and 1967.
Trust fund expenditures are therefore expected to be $500 million in
1967, $900 million below the 1966 level. Administrative budget
expenditures for the purchase by the Treasury of preferred stock
needed to support FNMA borrowings from the public for mortgage
purchases will decrease from $75 million in 1966 to $36 million in 1967.
Other aids.—The rent supplement program enacted in 1965 provides
an essential additional means for securing decent housing for lowincome families. Approval is being requested to provide for $35
million of annual payments for contracts made in 1967 under the new
rent supplement program, compared to the $30 million being requested
for 1966. Expenditures, however, are expected to be only $3 million
in 1967 because of the lag between the time funds are reserved and the
housing occupied by eligible tenants.
Expenditures for loans for housing for the elderly and the handicapped will increase by $10 million to $64 million in 1967 because of
commitments made in prior years. New loan commitments in
1967 will remain at the $85 million level expected in 1966.
The continuing growth of share accounts in savings and loan associations insured by the Federal Savings and Loan Insurance Corporation will produce a corresponding increase in receipts from insurance
premiums. For this and other reasons, the Corporation's receipts are
expected to exceed expenditures by an estimated $352 million in 1967,
compared with $262 million in 1966.
Legislation is being recommended to provide the Federal Home
Loan Bank Board with effective remedies, in the relatively few cases
where required, to preserve the soundness of our savings and loan
institutions without confining the Board to taking over an institution or terminating its insurance. Enactment of pending legislation
is recommended to strengthen the safety and liquidity of, and to
raise the maximum insurance coverage on individual accounts in, all
federally insured banks and savings and loan associations.
National Capital region.—The District of Columbia Government
provides both State and local government services for the National
Capital city. It is appropriate, in the tradition of American democracy, that responsibility for self-government should be returned to
the citizens of the District through the granting of home rule. The
specific programs and fiscal requirements of the District government
are discussed more fully in the separate District of Columbia budget.
The Federal budget provides $27 million to continue engineering
and design efforts and to finance acquisition of land and materiel
needed in construction of the authorized rail rapid transit system.




118

THE BUDGET FOR FISCAL YEAR 19 67

Efforts continue to develop an appropriate interstate compact with
Maryland and Virginia to facilitate extension of the authorized core
system into the adjoining suburbs.
To enhance further the beauty of the National Capital region
additional appropriations are proposed to complete acquisition of the
George Washington Memorial Parkway in Maryland and Virginia.
HEALTH, LABOR, AND WELFARE
Federal health, labor, and welfare programs play a major role in
promoting the well-being of the American people. Through these
programs, better medical care and treatment is made accessible, job
opportunities are increased, the income of the aged and others not in
the labor force is sustained, and the poor and needy are helped to
become self-sufficient. In 1967, payments to the public for the
Federal Government's health, labor, and welfare activities are estimated to increase by $5.2 billion over 1966 to a total of $39.3 billion.
About three-fourths of these outlays will be made through trust
funds financed by special taxes.
The increase in total payments in 1967 is mainly for the first year's
cost of benefits under the programs of hospital insurance and other
health services to older Americans enacted in 1965. The payments
for these new programs will be made from a trust fund and are expected
to total $3.3 billion in 1967. Outlays from trust funds for social security and other income maintenance programs are estimated to rise by
over $1 billion. Additional increases totaling $897 million will provide for expanded public health and vocational rehabilitation services
and for a buildup in efforts to combat poverty.
Health services and research.—The first session of the 89th
Congress enacted 12 major health measures, including provision of
better health care for the aged and for needy children, expansion of
health-related professional schools and medical libraries, improved
treatment of various illnesses, and increased efforts to combat air and
water pollution. The Department of Health, Education, and Welfare
is taking steps to organize and administer these and other health
programs effectively.
Total payments to the public for health services, research, training,
and related activities, including trust fund outlays, are estimated to
increase by $3.6 billion over 1966 to a level of $6.1 billion in 1967.
Health services for the aged.—Public and private costs of medical
services provided to the Nation's 19 million aged persons are estimated
at $8 billion in 1967. Almost one-half of these costs will be met by
the new health insurance programs and by medical assistance to the
aged provided under public assistance.




119

THE FEDERAL PROGRAM BY FUNCTION

HEALTH, LABOR, AND WELFARE
(Fiscal years.

In millions]

Program or agency

Payments to the
public
1965
actual

Administrative

Budget

1966

1967

Recommended
new obligational
authority
for 1967

Funds:

Health services and research:

Health services for the aged
Maternal and child health
National Institutes of Health
Hospital construction
Community health, except hospital construction
Environmental health and consumer protection
Other
Proposed legislation:
Pollution abatement
Student loan guarantees
Other health proposals

$272
114

$1,132

24
-21
23

780
203
160
194
159

$390 $1,122
174
215
1,000
1,150
215
240
247
319
239
307
242
.216

74
-21
41

234
1,303
314
477
409
258

Labor and manpower:

Manpower development and training
Other

230
234

279
244

282
250

400
279

54
33
71
53

491
240
377
102

710
350
415
125

923
228
450
149

2,827

3,288

3,364

3,511

137
14
362

215
122
538

314
122
410

329
122
402

8,377

9.962

11,016

17,460 20,787 21,819
53 3,325
1,438
1,615
1,791
1,240
1,274
1,185
3,130 2,890 2,947
-47
3
-27

23,223
3,835
2,851
1,584
3,923
12

23,186 26,589

31,110

135,428

792

81
5

1,741

28,292

34,115

39.331

Economic opportunity programs:

Community action programs
Job Corps
Work and training programs
Other
Public assistance (excluding medical care for the aged):
Grants to States and other
Other welfare services:

Vocational rehabilitation
Military service credits
School lunch, special milk, food stamp, and other
Subtotal, administrative budget_
Trust Funds:

Old-age, survivors, and disability insurance
Hospital and supplementary medical insuranceCivil service retirement and disability
Railroad retirement
Unemployment insurance
Other
Subtotal, trust funds _.
Intragovernmental transactions and other adjustments
(deduct)
TotaL
1

Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $7,456 million; 1966, $9,713 million.
Trust funds: 1965, $25,828 million; 1966, $28,000 million.




120

THE BUDGET FOR FISCAL YEAR 196 7

Outlays in 1967 from the hospital and supplementary medical
insurance trust funds are estimated at $2.4 billion for the new hospital
insurance program and $899 million for the supplementary medical
insurance program, which is primarily for doctor bills.
Administrative budget expenditures of $833 million are estimated
to be paid in 1967 to these trust funds, including: (1) $283 million to
provide hospital insurance for the aged who are not covered under the
social security or railroad retirement systems and (2) $550 million to
match the $3-per-month premium payments being made by aged
persons who will enroll voluntarily by April 1, 1966, in the supplementary medical insurance program.
Medical assistance grants will be made to the States to help about
860,000 aged persons meet the required premiums or costs not covered
by the new insurance. However, these grants are estimated to decline
by $75 million to a total of $289 million in 1967.
The two new insurance programs will pay State and community
hospitals for care provided to the aged. Legislation will be proposed
to permit these insurance programs to make similar payments to
Federal hospitals for care provided to beneficiaries.
Maternal and child health.—-Expenditures totaling $215 million will
be made in 1967 by the Children's Bureau to support State and local
maternal and child health programs in selected areas. These programs will be expanded by $41 million over 1966 principally to provide
comprehensive medical diagnosis and treatment for expectant mothers,
infants, and school-age children in families which cannot afford the
cost of medical care.
In addition, some of the savings in the program for medical care
for the needy aged will be used to increase and improve the extent and
quality of medical care provided to other needy people—particularly
children.
National Institutes of Health.—The national investment—both
pub lie and private—in health research was less than $500 million in
1957. Under the stimulus of the Federal Government, this amount
will have grown to more than $2 billion by 1967. Federal support of
health research is estimated to rise from 52% to 65% of the total
national effort during this decade. In 1967, more than half of the
Federal support will come from the National Institutes of Health—the
principal Federal health research agency. Expenditures by NIH
will total nearly $1.2 billion in 1967, $150 million more than in 1966.
The budget totals also cover the possibility of providing initial funding
if important new breakthroughs make feasible major advances such
as the development of an artificial heart or a new vaccine.




THE FEDERAL PROGRAM BY FUNCTION

121

Legislation enacted in 1965 established a major new program to
improve techniques for the diagnosis and care of heart, cancer, stroke,
and related diseases. Expenditures of $35 million are estimated in
1967 for this program, which will emphasize regional planning and
coordination of medical resources, continuing education for doctors
and other medical personnel, and the rapid dissemination of new
knowledge and techniques.
New obligational authority for programs to combat mental illness
will total $303 million in 1967, including $84 million to build and staff
community mental health centers.
Community health.—The adequacy of medical care is largely determined by the manpower and facilities available to meet ever
increasing demands. Since 1947 the Hill-Burton hospital construe*
tion program has assisted in providing 286,000 new hospital beds.
The country is now faced with the necessity of modernizing and
replacing many of its older hospitals, primarily in urban areas.
Accordingly, legislation is being proposed under which (1) States
and local governments can develop communitywide plans for modernizing hospitals and (2) the hospitals would then become eligible
for Federal assistance m repaying the construction costs.
In 1963, the Health Professions Educational Assistance Act authorized major new programs to increase facilities and provide loans to
students so that additional medical manpower can be trained. Under
legislation which will be proposed, the direct lending program for
students will be converted to guaranteed loans at no disadvantage to
the student.
Additional programs were authorized in 1965 to provide operating
grants for health professions schools, special grants for curriculum improvement, and scholarships for needy students. Expenditures in 1967
are estimated to rise by $40 million over 1966 to insure continued
progress toward the goal of increasing, between 1959 and 1975, the
number of medical school graduates by 50% and dental school graduates by 100%. Support is also available for training additional
nurses and graduate public health personnel.
To provide effective and economical medical services, highly trained
professionals must be supported by many categories of assistants and
technicians. Legislation is being proposed to expand the training of
medical assistants and other health personnel.
Numerous grants are currently made to States, local governments,
and nonprofit institutions to meet individual specified health problems.
This segmented grant structure has complicated the effective operation and coordination of programs. It also hinders the efficient use
of limited State and community health personnel and financial re-




122

THE BUDGET FOR FISCAL YEAR 1967

sources. Legislation is being proposed to provide greater Federal,
State, and local flexibility in carrying out federally supported programs.
Environmental health and consumer protection.—Increased urbanization and industrialization have resulted in a rapid buildup of pollutants
in the environment. Expenditures to deal with these problems will
increase by $92 million to $331 million in 1967.
This increase will allow acceleration of research on pollution and
training of more manpower to deal with pollution problems. The
attack on air and water pollution and the solid waste problem will be
intensified under recently enacted legislation which also established
a Water Pollution Control Administration.
A new program will be started in selected river basins to demonstrate methods for a broad attack on the water pollution pr oblems of
an entire basin. Water pollution from existing Federal in stallations
will be reduced in accordance with the recent Executive Order 11258,
and a similar directive governing air pollution is planned. Legislation
will be proposed to (1) strengthen water pollution enforcement authority, including the registration of those responsible for discharging
effluents into interstate and navigable streams, and (2) expand research, training, and control programs and demonstrate new techniques for waste treatment.
The Food and Drug Administration will provide greater surveillance
of new drugs and food additives. Efforts to control the illegal flow
of psychotoxic drugs will be doubled.
Labor and manpower.—Administrative budget expenditures in
1967 for labor and manpower programs are estimated at $531 million
in 1967, $8 million more than in 1966. An estimated $2.9 billion is
expected to be paid out through the unemployment trust fund for
unemployment insurance benefits and administering the Federal-State
employment security system. The Department of Labor budget
anticipates over $14 million in savings due to management improvements and the elimination of low priority activities.
Under the Manpower Development and Training Act of 1962,
about 370,000 unemployed workers have been enrolled in training,
and over 70% of those completing training have been placed in jobs.
In 1966 and 1967, this program is being redirected to concentrate on
workers who have little or no skills. Two-thirds of the estimated
250,000 trainees in 1967 will be drawn from this group of
workers, who generally are least able to take advantage of the job
opportunities of our prospering economy.
Special attention will also be given to training for skills in particularly short supply. On-the-job training and combined job-classroom




123

THE FEDERAL PROGRAM BY FUNCTION

Health, Labor, and W e l f a r e - Program Trends
Hiit-Burtort Program

40-

30-

20 -

10 -

1956

58

60

62

64

66 671956

56

60

62

64

66 67

training will be increasingly used as a less expensive but highly effective training technique in imparting job skills. To date, 94% of the
persons completing on-the-job training have obtained jobs.
A crucial element in alleviating poverty is identification of employment opportunities and the placement of workers in new jobs. Too
often workers who have been unemployed for a long time or who are
just entering the job market are not equipped with the knowledge
to find employment. To strengthen job-finding and placement
services, an additional $40 million is provided in 1967 for grants from
the trust fund to State employment security agencies, bringing the
total grants to $532 million. The increased funds will be used principally for (1) improved employment services for disadvantaged youth,
particularly for operating the network of Youth Opportunity Centers
in 139 major metropolitan areas; (2) increased services for the disadvantaged ; and (3) expansion of the existing pilot survey to develop
information on skill shortages in private industry.




124

THE BUDGET FOR FISCAL YEAR 1967

Legislation to improve the unemployment insurance program is long
overdue and should be enacted. More adequate regular benefits
are needed, coverage should be broadened to include 4.6 million
more workers, and extended benefits and incentives to participate in
training programs should be provided. In addition, the financial
basis of the system should be strengthened by raising the taxable wage
base.

Economic opportunity programs.—The Economic Opportunity
Act of 1964 began a new, concerted effort to combat poverty. It
authorized 10 major new service programs and provided new mechanisms for coordinating planning and action at both the Federal
and local levels. In fiscal 1967, the second full year of these programs,
expenditures are expected to reach $1.6 billion, compared to $1.2
billion in 1966 and $211 million in 1965. Recommended new.obligational authority for 1967 will be $1.75 billion.
The major goal of the Economic Opportunity Act programs is to
help people to help themselves. Accordingly, heavy emphasis is
placed on promoting the development of the ability and skills needed
for self-support. More than 1 million children and youths from poor
families will receive assistance in 1967 through the Head Start, remedial education, Neighborhood Youth Corps, and Job Corps programs.
Programs to provide work experience and subprofessional employment,
adult literacy training, and small business loans will help over 250,000
adults to become productive members of society.
Civilian employment is expected to continue rising sharply in
calendar year 1966. This will provide increased job opportunities
for the poor and make it easier to place the graduates of training and
rehabilitation programs in jobs. However, this desirable development
should not obscure the fact that even high employment will still
leave millions of people in poverty.
Community action programs.—Federally aided community action
agencies provide a focus for local initiative and comprehensive planning to weld together old and new programs to fight poverty. By
1967, such agencies will be operating communitywide programs in 900
cities and multicounty rural areas. The programs will utilize Federal,
State, local, and private resources to provide health services, employment counseling and referral, literacy training, education, and other
services in the areas and for the groups most in need of such assistance.
Certain nationwide high-priority programs are also underway, the
most important of which is Project Head Start. Building on its
success last summer, full academic year preschool classes will be
funded in fiscal year 1967 for 210,000 children and summer projects




THE FEDERAL PROGRAM BY FUNCTION

125

will be provided for 500,000. Over 90,000 teachers and teacher aides,
as well as 50,000 neighborhood residents, will cooperate in giving these
children the special attention they need.
Other programs are being supported to expand legal services for
the poor, to help prepare culturally deprived youths for college, and
to enable elderly retired persons to "adopt" young children who are
in understaffed institutions.
Job Corps.—The Job Corps offers a unique opportunity to out-ofschool youths who need vocational training to find and keep useful
jobs. In 1967, 25 urban training centers and 99 rural centers will have
the capacity to handle 39,000 young men and 6,000 young women.
Work and training programs.—In 1967, over 400,000 poor youths
and adults will participate in work and training programs under the
Economic Opportunity Act. The Neighborhood Youth Corps will
provide 125,000 part-time jobs during the school year and 165,000
jobs during the summer months to help needy young people remain
in high school. Under the "out-of-school" portion of the Corps, the
equivalent of 128,000 work and training positions of 6 months duration will be provided to help unemployed youths gain the experience
necessary to find permanent jobs. The Work Experience program
will offer work, training, basic education, and related services to
approximately 105,000 current or potential public assistance recipients
with about 300,000 dependents.
Migrants, VISTA, basic education, small business.—During 1967,
$38 million—$13 million more than in 1966—will be provided for education, training, day care, sanitation, and housing for many of the
400,000 migrant farm workers in the United States. In addition,
4,500 VISTA's (Volunteers in Service to America) will be in training or
in service in 350 projects by the end of 1967. Basic education will be
provided for 75,000 adults through courses funded by $30 million in
grants to States for adult literacy. An estimated 15,500 low-income
rural families will receive loans to finance farm improvements or small
nonfarm businesses. Small business loans accompanied by management training to businessmen will be provided through 70 Small
Business Development Centers.
Total assistance for the poor.—The Federal Government provides
substantial assistance to the 34 million people who live in poverty, in
addition to the economic opportunity programs. Other activities
contributing to the effort to combat poverty include social insurance
and public welfare, education, medical benefits, retraining, regional




126

THE BUDGET FOR FISCAL YEAR 1967

Federal Aid to the Poor

IBiltion,
v

"""*•

5

•

*

» •

'

-

**•

*•*»

-6

w ~

*:-

- 6

1966
1967
Estimate

economic development, housing and community facilities, school
lunch, and other agricultural programs.
In 1967, Federal expenditures for benefits and services to the poor,
including those under the Economic Opportunity Act, will total an
estimated $21 billion, nearly $4 billion more than in 1966. About
three-fifths of the assistance—$12.7 billion—represents cash payments
to low-income families and individuals through social insurance, public
welfare, and other benefit programs. Other major items are $2.8
billion for medical benefits for the young and aged poor, $2.8 billion
for educational services through programs such as those provided by
the Elementary and Secondary Education Act of 1965, and $0.7
billion for food and other agricultural assistance.
Social security and public welfare.—The 1965 Amendments to
the Social Security Act increased the cash benefits provided under the
system and extended its coverage. Now practically all workers




THE FEDERAL PROGRAM BY FUNCTION

127

and their families are provided protection against the loss of earnings due to death, total disability, or retirement either through
the basic social security system or through the special systems
for railroad and Federal workers.
Expenditures of $24.9 billion are estimated for 1967 from the trust
funds for old-age, survivors, and disability insurance; for railroad
retirement; and for retirement programs for Federal employees.
These expenditures reflect both the continued growth in numbers of
beneficiaries of these programs and increases in benefits. The increase
of $1.2 billion estimated from 1966 to 1967 is smaller than would
be expected, because nonrecurring payments of $830 million were
made in September 1965 to cover the 7% increase in social security
benefits retroactive to January 1, 1965.
The protection provided by these systems is financed by payroll
contributions shared by employers, employees, and also paid by the
self-employed. Receipts of the retirement and disability trust funds
in 1967 are estimated at $27.7 billion, an increase of $4.5 billion
over 1966. Most of this rise is in the social security system, reflecting (1) the full year's effect of the January 1, 1966, increase in the
wage base from $4,800 to $6,600 and in the combined payroll tax rate
from 7.25% to 8.4%, and (2) a further increase in the combined payroll tax to 8.8%, scheduled for January 1, 1967. These new rates also
cover the new hospital insurance program.
To help meet rising workloads more efficiently, the Social Security
Administration will further extend the use of automatic data processing in its recordkeeping and computational operations in fiscal year
1967. About $12 million will be saved by procedures which will automatically recompute individual benefit amounts based on changes in
earnings after retirement.
Federal payments are made each year to the railroad retirement
system to liquidate the Federal Government's obligation to that system for credits for past military service. This budget includes expenditures of $17 million in 1967 for the third of 10 installments and
$105 million as the second of 50 installments to liquidate a similar
obligation to the social security system.
Public assistance.—As indicated earlier, Federal grants for medical
assistance for the aged are expected to decline in 1967, reflecting the
impact of the new health insurance programs. Similarly, greater
benefit payments through our social security system will continue to
reduce the number of aged persons requiring help from the FederalState public assistance program-—even though Federal legislation
enacted in 1965 will extend assistance to some 18,000 aged in mental
or tuberculosis institutions. The resulting savings will offset some-




128

THE BUDGET FOR FISCAL YEAR 1967

what the increase needed to provide higher monthly cash assistance
payments and more adequate medical care for other needy people—
particularly 4.7 million in broken families.
An economy with abundant job opportunity enhances the prospects
for rehabilitating and successfully finding productive employment for
some individuals on the public assistance rolls. Accordingly, legislation is being proposed to improve the role of programs giving assistance
to unemployed parents of needy children by providing work experience, services, and training to equip them for regular employment.
New obligational authority of $3.4 billion is recommended for
1967 for Federal grants—excluding grants for medical assistance for
the aged. This is an increase of $222 million over 1966. When
matched with State and local funds, $5.7 billion will be available in
1967 to provide necessary financial and medical assistance, and social
services to 7.5 million of our poorest citizens. Federal expenditures,
however, will rise by only $65 million to $3.3 billion because of a change
in the scheduling of payments to the States.
This Nation is once again extending its welcome to refugees from
Cuba who are fleeing oppression and tyranny. Federal expenditures
to help resettle and absorb these refugees are expected to rise by
$8 million to $46 million as the number granted asylum since October
1965 rises from 36,000 by July 1966 to 88,000 by July 1967.
Other welfare services.—Under the stimulus of broadened legislation
and increased Federal matching, 215,000 individuals will be restored
to gainful employment in 1967 by the Federal-State vocational
rehabilitation program, 25% more than in 1966. Expenditures
are estimated to rise from $215 million in 1966 to $314 million in
1967. Increased emphasis will be placed on restoring to economic
self-sufficiency the mentally retarded, the severely disabled, and other
handicapped individuals who are now supported by public assistance.
In 1965, legislation created a new Aging Administration in the
Department of Health, Education, and Welfare. Expenditures by this
new unit are expected to rise from $5 million in 1966 to $9 million in
1967 as increased Federal grants help the States strengthen programs
for the aged.
With the new laws enacted last year, the total of all benefits and
services provided through Government budget and trust funds for
persons over age 65 is estimated at $26 billion in 1967, almost $4 billion more than in 1966.
The school lunch program is expected to reach 19 million school
children in 1967, 1 million more than in 1966. A substantial increase
in funds will be made available to provide more lunches for schools
with a preponderance of low-income families. The special milk




THE FEDERAL PROGRAM BY FUNCTION

129

program, which permits schools to sell milk at reduced prices, will be
directed primarily to helping needy children in 1967, thereby permitting a reduction of $52 million in expenditures. The food stamp
program will continue to expand as more low-income families take
advantage of the opportunity to improve their diets. Legislation will
be proposed to improve nutrition for needy children.
EDUCATION
The maximum development of each citizen's capabilities is important both for individual fulfillment and for the general well-being of
society. Improvement of our educational system is a vital element
in our Nation's continued economic expansion and social and cultural
advancement. No instrument is more powerful than education in
striking at the roots of poverty.
The Federal Government's contribution to education was given
great impetus by the 89th Congress with the passage of the Elementary
and Secondary Education Act of 1965 and the Higher Education Act
of 1965. The programs they authorize will greatly strengthen and
improve our educational system and increase educational opportunities, particularly for disadvantaged children and for those whose
higher educational opportunities are limited by finances.
The 1967 budget provides increased funds to meet the added
Federal responsibilities for education. Expenditures in 1967 are
estimated at $2.8 billion, an increase of 23% over 1966 when the new
programs are just getting underway. Legislation is being proposed
to make greater use of private credit in loan programs and to achieve
budgetary savings through program modifications.
Assistance for elementary and secondary education.—Ex-

penditures for all elementary and secondary education activities are
estimated to rise from $730 million in 1966 to $1.5 billion in 1967.
This increase reflects mainly the second year cost of programs under
the Elementary and Secondary Education Act of 1965.
Title I of this act authorizes financial assistance for special educational programs in areas having high concentrations of children from
families with incomes of $2,000 or less. Emphasis is being placed on
enriching regular school instruction and augmenting it by evening
and summer activities, special remedial classes, guidance and counseling, and other services needed to overcome learning handicaps. Title I
activities are estimated to require expenditures of $970 million in
1967, an increase of $740 million over 1966.
This budget also provides funds for purchase of library books, textbooks, and other instructional resources under title II of the 1965
200-000 O—66




9

130

THE BUDGET FOR FISCAL YEAR 1967
EDUCATION
[Fiscal years. In millions]

Program or agency

Payments to the
public
1965
actual

Administrative Budget Funds:
Assistance for elementary and secondary education:
Education of the disadvantage!
Supplementary centers, school books, and strengthening State education agencies
School equipment, guidance, and testing
Assistance to schools in federally impacted areas
Assistance for higher education:
Aid for undergraduate and graduate students:
Present programs
...
Proposed legislation
Academic facility loans and grants
College housing loans
Proposed legislation for pool participation sales of academic facility and college housing loans
Other aids to institutions
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
National Teacher Corps and teacher fellowships
Indian education services
Library of Congress and Smithsonian Institution
Grants for public libraries
Educational research and development
Other
Subtotal, administrative budget _

Recommended
new obligational
1966
1967 authority
estimate estimate for 1967

$230

$970

$1,070

65

230
79
267

272
88
206

81

$68
350

354

158

283

313
-34

4
221

147
240

396
289

431
-34
723
300

30

41

-908
83

-300
104

156
32
101
20

184
41
115
25

221
60
118
26

279

132

173
1
106
67

205
47

240
74
115
66
58
110
177

99
52
26
17
79

35
45
85

113
73
51
87
148

1,544

2,318

2,834

49

58

64

1,497

2,264

2,774

Trust Funds
Intragovernmental transactions and other adjustments
(deduct)
Total.
1

Compares with new obligational authority for 1965 and 1966 as follows:
Administrative budget funds: 1965, $2.41 7 million; 1966, $4,278 million.
Trust funds: 1965. $2 million; 1966, $3 million.




85
133
28

1

4,225

THE FEDERAL PROGRAM BY FUNCTION

131

act and for increased grants to State educational agencies to expand
their planning, statistical, and related services. Another major
effort, under title III of the act, is the support of supplementary educational centers and services. Their purpose is to encourage widespread use of innovative instructional techniques, programs, and materials for all school children in the Nation's classrooms. In 1967, an
estimated $230 million will be spent on these programs compared with
$65 million in 1966.
Legislation will be recommended to extend the Elementary and
Secondary Education Act beyond 1966, to raise the low-income
criterion for special assistance from $2,000 to $3,000 for fiscal year
1968, and to revise certain provisions, including elimination of the
incentive grants.
Expenditures in 1967 for schools in areas affected by Federal
activities will decrease by $87 million from 1966. The decline results
from a proposed reduction of aid based on (1) recent studies
made at the request of the Congress, and (2) the impact of the
large new Federal programs which meet many of the same needs.
This special form of assistance should be periodically adjusted to
reflect the growth in assistance under the Elementary and Secondary
Education Act of 1965.
Assistance for higher education.—Programs for assistance to
higher education will be considerably expanded in 1967. However,
net budgetary outlays will be substantially lower because of the substitution of private for public credit in the loan programs for college
housing and academic facilities and for the student loan program
under the National Defense Education Act. Thus, expenditures for
higher education programs are estimated to decrease by $572 million
to $140 million.
The Higher Education Act of 1965 greatly augmented financial
support for academically qualified students in need of financial assistance. Under this act, more than 1 million students will be assisted
in 1967, three times as many as in 1965. Scholarships will be provided
to 220,000 students in 1967, an increase of 105,000; about 210,000
students are expected to be helped through work-study programs, a
60,000 increase; and 775,000 students will receive federally subsidized
guaranteed loans, a 475,000 increase.
Legislation will be proposed to shift the National Defense Education Act student loan program to the newly authorized subsidized
loan guarantee program, retaining the special assistance for students
who subsequently teach. As a result, NDEA student loan expendi-




132

THE BUDGET FOR FISCAL YEAR 1967

tures will decline by $149 million to a level of $30 million in 1967,
although the number of students receiving subsidized loans will
increase.
A program providing grants and loans to aid colleges in construction
of classrooms, libraries, and laboratories was begun in 1965. This
program has expanded rapidly and is estimated to involve expenditures of $396 million in 1967, compared with $147 million in 1966.
An estimated 1,300 colleges will receive help in 1967, double the
number in 1965.
The college housing loan program administered by the Department
of Housing and Urban Development will continue to help provide
new dormitories needed for the increasing student population. The
present rate of $300 million in new loan reservations a year is expected
to continue in 1967. However, net expenditures under existing legislation are estimated to increase by $49 million to a level of $289
million in 1967 as fewer loans are purchased by private investors at
the new lower 3 % interest rate provided by the Housing and Urban
Development Act of 1965.
Legislation is being proposed to increase private financing of both
college housing loans and academic facility loans through sales of
participations in pools of loans similar to those successfully employed
by other major Government loan programs. Because most of the
loans have been made at interest rates below current market levels,
the legislation would authorize supplementary funds where necessary
to assure payments on certificates of participation which are sold in
pools of such mortgages. In 1967, the budgetary effect of this legislation is to reduce net expenditures for college housing loans by $820
million and for academic facility loans by $88 million. Legislation
is also being proposed to cancel $300 million of new obligational authority otherwise becoming available in 1967 for college housing loans.
Expenditures for other aids to higher educational institutions are
estimated at $83 million for 1967, $42 million more than in 1966.
These aids include new programs authorized in the Higher Education
Act of 1965 to enlarge college libraries and improve smaller colleges
which lack adequate financial resources and qualified personnel.
Assistance to language and area centers will also be continued.

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




133

THE FEDERAL PROGRAM BY FUNCTION

E d u c a t i o n — Program Trends

Student A i d Programs

Federal Expenditures
Billi*

LI
1956

I
58

60

62

I
64

]
66 67 1956

58

60

64

66 67
Estimate

1967, expenditures by the Foundation are estimated at $425 million,
an increase of $60 million over the 1966 level. Nearly two-thirds of
this increase is for support of basic research, primarily in universities,
reflecting increases in faculty and graduate student enrollments
in the sciences and engineering. In addition to contributing to the
advancement of knowledge, academic research is an essential element
in the advanced training of scientists and engineers.
Greater emphasis is being placed on broadening the base of science
training and research at colleges and universities throughout the
country. Expenditures will increase for grants to accelerate the
development of selected academic institutions into centers of scientific
excellence. Assistance will also be provided to strengthen individual
science departments—both graduate and undergraduate—in a wider
range of institutions having a potential for significant improvement.




134

THE BUDGET FOR FISCAL YEAR 1967

Other aids to education.—Expenditures for vocational education,
public library assistance, Indian education services, and other programs aiding education are expected to increase from $512 million in
1966 to $723 million in 1967. The 1967 budget includes funds for
proposed legislation to authorize the Office of Education to make
grants to universities to strengthen their programs in international
education.
Local education agencies face a pressing need for teachers with
special abilities, particularly for work with disadvantaged children.
To help meet this need, a new Teacher Corps has been authorized.
Over 3,700 individuals in teams composed of experienced teachers
and teaching interns will be available in 1967 to serve in schools with
concentrations of children from low-income families. Expenditures
for the Teacher Corps and teacher fellowship programs in 1967 are
expected to be $47 million, compared to the $1 million projected for
1966, the first year of the programs.
Extension and community service programs under the Higher Education Act of 1965 will be augmented in 1967 to help communities
meet the challenges of urbanization. Efforts to solve community
problems in such areas as housing, poverty, recreation, employment,
youth opportunities, transportation, health, and land use will be
assisted through university extension and research activities. Expenditures on these programs are expected to rise from $3 million in
1966 to $16 million in 1967. Outlays for vocational education,
including a new subsidized program of student loans for post-secondary
vocational and technical training, are estimated to rise from $173
million in 1966 to $205 million in 1967.
Research and innovation in education have been hampered by lack
of funds. To encourage action, expenditures for educational research
and demonstration programs will be increased from $45 million in
1966 to $87 million in 1967. Support will be provided for 4 additional regional laboratories to speed the application of new instructional techniques and materials, bringing the total to 12 in 1967.
Funds will be oriented to specific critical areas in education such as
the needs of the disadvantaged.
The National Foundation on the Arts and the Humanities, created
by the Congress in 1965, will spend over $8 million in 1967 compared with $2 million in 1966.
Expenditures are also estimated to increase for other educational
activities, including training of teachers for the handicapped, training
of teachers and administrators in meeting problems caused by desegregation of schools, improvement of public library services, and
continued strengthening of the Office of Education, particularly in
its field offices.




THE FEDERAL PROGRAM BY FUNCTION

135

VETERANS BENEFITS AND SERVICES
Payments to the public for veterans programs are estimated to rise
in 1967 by $738 million from the 1966 level. This increase results
mainly from (1) greater net expenditures for the housing loan programs
because of a decline in offsetting receipts available from the sale of
Government-held mortgages, as the inventory of these mortgages is
substantially reduced in 1966, and (2) greater life insurance trust fund
payments, largely because some dividends scheduled for payment in
1966 were paid in 1965.
The 1967 budget proposals reflect the need to meet current requirements of veterans and their dependents. Legislation will be supported to provide education and training assistance for veterans of
recent service to help ease readjustment to civilian life. On the other
hand, as we continue to improve and broaden programs designed for
the general populace we should place greater reliance on these programs for meeting veterans' needs not connected with their military
service. Critical reappraisal of veterans' programs which have persisted virtually unchanged since their inception over 40 years ago
should eliminate those concepts which are no longer consistent with
current medical knowledge. Additionally, those concepts which provide special advantages for favored groups of veterans not enjoyed
by all veterans similarly situated should be eliminated or modified to
equitably meet current requirements.
Service-connected compensation.—Compensation payments for
death and disability resulting from military service are estimated at
$2.3 billion in 1967, about the same as in the current year. A
slightly declining caseload will be nearly offset by higher average
payments per case, in line with increased compensation rates provided
by the 89th Congress and with the general advance in veterans7 age
and disabilities. Approximately 2,320,000 disabled veterans or their
survivors will receive payments in 1967, about 40,000 less than this
year. The average annual payment in 1967 is estimated to be $937
to disabled veterans and $1,319 to survivors.
Non-service-connected
pensions.—In 1967, pensions for disability and death not connected with military service are estimated at
$2.0 billion, a decrease of $23 million from the current year. An increase in the number of World War II and Korean conflict veterans
receiving pensions will be more than offset by the decreasing number of
veterans of World War I and earlier wars, while the $1,064 average payment per case will remain unchanged. The number of veterans'
survivors receiving pensions is estimated to rise by 22,550 to a total
of 980,085, with the average payment for these cases also remaining
level at $739.




136

THE BUDGET FOR FISCAL YEAR

1967

VETERANS BENEFITS AND SERVICES
[Fiscal years.

In millions]
Payments to the
public

Program or agency

Recommended
new obligational
authorit;
athonty
foi r 1967
»

1965
actual
Administrative

Budget

1966

1967

$2,176
1,864

$2,311
2,001

$2,307
1,978

$2,309
1,983

43

37

36
100

-138
38

-709
-147

6

6

36
90
-210
-86
6

1,138
81
52

1,202
84
57

1,245
74
57

1,265
56
58

-6

-34

69

-17
40
78

80

82

171

179

178

177

5,495

5,122

5,721

545
71
8

479
63
12

603
68
10

678
45
13

624

554

682

1735

38

34

22

5,642

6,380

Funds:

Service-connected compensation
Non-service-connected pensions
Readjustment benefits:

Education and training:
Present programs
Proposed legislation
Direct housing loans
Housing loan guarantees
Other

_

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
Special death gratuity
Burial and other allowances
Veterans Administration general operating expenses
and other
Subtotal, administrative budget.
Trust

6,077

Funds:

National service life insurance...
U.S. Government life insurance.
Other
Subtotal, trust funds.
Intragovernmental transactions and other adjustments
(deduct)
Total.
1

1

6,0

Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $5,810 million; 1966, $6,018 million.
Trust funds: 1965, $719 million; 1966. $730 million.

Readjustment
benefits.—In view of the increasing number of
young Americans currently being exposed to the uncertainties and
special hazards of military service, provision should be made for
educational and training assistance to help veterans in readjusting to
civilian life. Such assistance should build upon the various educa-




THE FEDERAL PROGRAM BY FUNCTION

137

tional programs which are now available to all our citizens, but should
go beyond these programs where necessary to meet the special needs
of veterans. Due recognition should be given to the problems of the
military services in encouraging the enlistment and retention of able
service personnel. Enactment of legislation for this purpose is estimated to result in expenditures of $90 million in 1967.
The Veterans Administration guarantees housing loans for eligible
veterans and makes direct housing loans to veterans in rural areas and
in relatively small communities where private credit is not generally
available. In 1967, collections on outstanding loans are expected to
exceed outlays for new loans by $296 million, largely as a result of
continuing efforts to encourage private credit participation in veterans
housing programs.
The excess of collections over disbursements for the direct loan
program alone is estimated to decrease from $709 million in 1966 to
$210 million in 1967, primarily because the high level of mortgage
sales to private investors in 1966 will greatly reduce the portfolio of
saleable mortgages. In addition, the number of new loans is expected
to decline from 6,000 in 1966 to 4,500 in 1967, as fewer veterans remain
eligible.
About $1.1 billion of unobligated funds will be carried forward into
1967 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 1967
under present law.
The excess of receipts over outlays for the loan guarantee program
is expected to decline from $147 million in 1966 to $86 million in 1967.
As in the direct loan program, the main reason for the decrease is the
smaller mortgage portfolio resulting from the large volume of mortgage
sales in 1966. Foreclosures of 22,200 mortgages financed with
guaranteed loans are expected in 1967, slightly fewer than in 1966.
In addition, the number of home mortgages guaranteed will decline
by 7% as an increasing number of World War II and Korean veterans
become ineligible for home loan guarantees and as veterans increasingly take advantage of mortgage insurance by the Federal Housing
Administration made available on special terms in the Housing and
Urban Development Act of 1965.
Hospitals and medical care.—Expenditures for medical care of
veterans are estimated at $1.4 billion in 1967. This amount—which
covers medical services, administration, medical research, and construction of new medical facilities—is $33 million higher than the
estimate for 1966.




138

THE BUDGET FOR FISCAL YEAR

1967

Veterans Benefits and Services - Program Trends

If

Services, research, and administration,—The Veterans Administration's medical program is established to provide needed care to all
veterans with service-connected disabilities. To the extent that
available facilities and staff are not required for these veterans, VA
hospital care is provided for veterans with non-service-connected
disabilities who are unable to pay for care in other hospitals. This
program is operated largely through the nearly 200 VA hospitals and
clinics across the country.
Improvement in the quality of medical care for veterans has been
a continuing goal and the 1967 budget provides for an increase of $43
million in expenditures from the amount being spent in 1966. Over
$21 million of this increase is to provide for new medical services,
correct staffing deficiencies, and expand the research program. Five
new and replacement hospitals are to be activated in 1967 at Miami
and Gainesville, Fla.; Memphis, Tenn.; Oteen, N.C.; and Temple,
Tex., as part of the continuing program of replacing outmoded medical




THE FEDERAL PROGRAM BY FUNCTION

139

facilities with modern units appropriately designed to allow high
quality medical care to be provided.
Approximately 138,700 veterans per day will be cared for in VA,
contract, or State hospitals, domiciliaries, and nursing homes in 1967.
This is almost 1,900 more than in 1966. An estimated 6.3 million
outpatient visits will be made to VA clinics or to private physicians
and dentists at Federal expense.
Hospital construction.—An estimated $74 million will be spent in
1967 for hospital construction. This will be the seventh year of
VA's 15-year $1.2 billion program for modernizing the veterans hospital system. Approximately $482 million has been appropriated for
this program since 1961. To carry it forward in 1967, new obligational authority of $52 million is requested, including $3 million to
provide for construction and planning of new medical research facilities. In addition, $4 million is requested for the grant program
authorized in 1965 to assist States to build nursing home facilities in
conjunction with their soldiers' homes.
Construction will be started on a new 720-bed hospital at Tampa*
Fla., and a 480-bed replacement unit for the hospital at Northport*
N.Y. Planning for several additional hospital expansions, partial
replacements, and modernization projects will be initiated in 1967.
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.
The expenditures of these trust funds are estimated to increase by
$129 million in fiscal year 1967, mainly because half of the total regular
dividend payments due in 1966 were disbursed in January 1965.
Other veterans benefits and services.—Insurance and indemnity
expenditures from administrative budget funds are estimated to decline in 1967 because (1) the scheduled 10-year payments for the
servicemen's indemnity program are nearly completed, and (2) premiums, principally for special term insurance, will exceed benefit
payments and administrative costs.
A new servicemen's group life insurance program enacted by the
89th Congress provides for each serviceman on active duty a commercially underwritten insurance coverage of up to $10,000. The
net cost to the Federal Government of this program in 1967 is estimated at $6 million. For survivors not covered by the new life




140

THE BUDGET FOR FISCAL YEAR

1967

insurance program, a special gratuity was provided, resulting in a
nonrecurring expenditure of $40 million in 1966.
The costs of general administrative operations of the VA will
continue to decline as a result of reductions in workload, recent
reorganization of field installations, continuing improvements in
productivity, and continued efforts to improve automatic data
processing.
INTEREST
Interest payments on the public debt will rise substantially both
in fiscal year 1966 and in fiscal year 1967. These increases result
primarily from the higher cost of refinancing the large volume of
short-term public debt at present market rates of interest. The
anticipated increase in the average debt outstanding during the year
will also contribute to the higher level of payments.
INTEREST
[Fiscal years.

In millions]

Item

Payments to the
public
1965
actual

Administrative

1966
estimate

1967

Recommended
new obligational
authority
for 1967

Budget Funds:

Interest on public debt
Interest on refunds of receipts
Interest on uninvested funds
Subtotal, administrative budget
Intragovernmental transactions and other adjustments
(deduct):
Interest paid to trust funds and Government agencies
Excess of interest accrued over interest paid. _ _
Total

$11,346 $12,000 $12,750
91
77
91
12
12
13
11,435

12,104

12,854

2,006
825

2,088
711

2,254
448

8,605

9,304

$12,750
91
13

10,152

12,854

Payments to the public for interest in 1967 will be substantially
below estimated administrative budget expenditures for two main
reasons: (1) interest payments of $2.3 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 primarily on savings
bonds—included in administrative budget expenditures—are estimated to exceed by $448 million the actual interest payments made
to bondholders during 1967.




THE FEDERAL PROGRAM BY FUNCTION

141

GENERAL GOVERNMENT
Outlays in 1967 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
$2.5 billion, $109 million more than in 1966. Most of the increase
will be used to improve further our tax collection system, provide
more efficient Federal office space and facilities, and strengthen law
enforcement activities.
Legislative and judicial functions.—Expenditures
for the
legislative functions of the Government are expected to total $162
million in 1967 compared with $166 million in 1966. An increase of
$10 million is estimated for the judicial functions in 1967, primarily
to pay the legal fees of indigent defendants in accordance with the
Criminal Justice Act of 1964.
Central fiscal operations.—An expenditure increase of $23 million
in 1967 will allow the Internal Revenue Service to maintain the same
audit coverage as in 1966 for a larger number of taxpayers. The Service will also complete the installation of the master-file system for taxpayer information on a nationwide basis. This final step should add
about $50 million annually to Federal revenue collections.
General property and records management.—The
General
Services Administration is continuing to replace old, inefficient, and
high-cost leased space with more modern and efficient facilities for
Government operations throughout the United States. New obligational authority of $183 million is requested for 1967 for the acquisition
of sites, and the planning and construction of new buildings—$30
million more than was enacted for 1966. Expenditures will rise to
$188 million in 1967, $8 million more than in 1966, as progress is
made on construction financed in prior years.
Funds have been included in the budget to start the work authorized by Public Law 89-306, to improve the efficiency and lower the
costs of procurement, maintenance, and use of automatic dataprocessing equipment by Federal agencies. Allowance has been made
in the 1967 budget totals for the establishment of a revolving fund for
these activities, with funds to be requested after completion of the
necessary studies.
Central personnel management.—Expenditures
of the Civil
Service Commission are estimated at $128 million in 1967, an increase
of $4 million over 1966. The Commission is establishing interagency examining boards to provide more efficient, effective, and




142

THE BUDGET FOR FISCAL YEAR 1967
GENERAL GOVERNMENT
[Fiscal years.

In millions]

Program or agency

Pay ments to the
public
1965
actual

Administrative Budget Funds:
Legislative functions
Judicial functions
Executive direction and management
Central fiscal operations:

1966

Recommended
new obligational
authorit
thority
fo r 1967

1967

$142
76
23

$166
84
27

$162
94
28

$156
94
28

587
238

606
266

629
289

656
273

165
340
101
*

180
330
70

188
331

183
328

94

97

1

1

57
117

50
124

128

49
128

351
15

377
21

398
25

397
25

115
74
*

157
9
12

135
9

1

137
34
-1
6

2,402

2,476

2,591

Trust Funds

21

23

24

Intragovernmental transactions and other adjustments
(deduct).-

83

85

92

2,341

2,414

2,523

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

45

Protective services and alien control:

Department of Justice
Other
Other general government:

Territories and possessions
Treasury—claims
Government Printing Office (Legislative branch)
Alaska grants and other
Subtotal, administrative budget

Total

53
1

1
1

2,612
123

* Less than one-half million dollars.
Compares with new obligational authority for 1965 and 1966, as follows:
Administrative budget funds: 1965, $2,501 million; 1966, $2,622 million.
Trust funds: 1965. $24 million; 1966. $23 million.

1

convenient service to persons seeking Federal employment. It is
also expanding its efforts to recruit and develop executive talent
throughout the Federal Service. In cooperation with other agencies,
the Commission will also develop common job standards and wage
policies to insure that equitable and comparable wages are paid to all
blue collar employees in a local area.




143

THE FEDERAL PROGRAM BY FUNCTION

Protective services and alien control.—Expenditures of the
Department of Justice are estimated to increase by $21 million in 1967,
primarily for an intensification of efforts to combat rising crime rates.
A substantial expansion is proposed in grants to States, local agencies,
and nonprofit groups for training, research, and developmental programs in law enforcement, corrections, and the administration of
justice. Legislation is being proposed to authorize larger appropriations to permit an expansion of these activities. Legislation is also
being proposed to provide new programs of financial assistance for the
education of present and prospective law enforcement officers.

General Government - Program Trends
fctfWeoMbeMint
BiHiom

10-

Tax Collation

. G e i w a l Seryiccs A.Jfflini.tration
Miinons of 5^|« Ft.

110-

-100
Government Space Managed

-so

I

I

I
65

I

I
64

1

1

t

1

1

1

66 6 7 * 9 5 6 - 58

I

I

I

I

1 I

-40

Cii?i7 Rights.—Substantial increases have been provided throughout the executive branch for programs to secure the civil rights of
individuals and minority groups. Expenditures to administer these
programs are estimated at $54 million in 1967, an increase of $5




144

THE BUDGET FOR FISCAL YEAR 1967

million over 1966 and $25 million over 1965. The most significant
increases are: (1) for activities of all Federal agencies under title VI of
the Civil Rights Act of 1964 and other Federal directives which seek
to assure non-discrimination by organizations receiving Federal
financial assistance and by Federal contractors; (2) for the Equal
Employment Opportunity Commission, to handle a larger workload
and to initiate a new program of grants to assist the States in strengthening their equal employment programs; and (3) for the Community
Relations Service, expanding its program by more than 50%. Proposals will be made to the Congress to strengthen further the guarantee
of equal protection to all under the law.
Other general government.—The Government Printing Office, an
agency of the legislative branch of the Government, is requesting
appropriations of $47 million to build a modern plant designed to
increase the efficiency of its operation.
Legislation already before the Congress is again recommended to
increase from $12 million to $25 million the amount authorized for
economic assistance to further develop the Ryukyu Islands. Upon
enactment, an appropriation of $5 million is expected to be requested
for fiscal year 1967 in addition to the $12 million requested under the
current authorization.
The activities of the Virgin Islands Corporation will cease at the
end of fiscal year 1966, reflecting the increased self-sufficiency of the
Islands. The Corporation sold its water and power facilities to the
Government of the Virgin Islands in 1965 and will dispose of the
remaining properties in 1966.
The Renegotiation Act expires on June 30, 1966. This act should
be extended in order to continue the Renegotiation Board's recovery
of excessive profits on procurement for national defense and certain
other programs.
Favorable action should be taken on the proposed Intergovernmental Cooperation Act, already before the Congress. This act
would improve the administration and facilitate congressional review
of Federal grants-in-aid. It would also provide a means for coordinating intergovernmental policy in the administration of grants for
urban development.




145

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)
[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. 168 to 375)]
NEW OBLIGATIONAL
AUTHORITY

Description

1965

actual

1966
1967
estimate estimate

EXPENDITURES

1965

actual

1966
1967
estimate estimate

ADMINISTRATIVE BUDGET
FUNDS
050 NATIONAL DEFENSE
051

Department of Defense—Military:

057

14,771
12,349
11,839

16,600
14,160
13,880

18,150
14,980
15,970

6,483
1,049
631
105

6,791
2,500
666
107

6,905
593
522
133

6,236
1,007
619
93
-741

6,370
1,140
650
100
25

6,400
1,120
545
100
-115

61,838

58,938

46,173

52,925

57,150

1,130

1,470

917

1,229

1,275

1,150

2,366

2,263

2,625

2,390

2,300

6

4

5

5
60

6
-123

6
-148

10

13
*

10

10

17

20

60

53

Atomic energy:

Atomic Energy Commission
059 Defense-related activities:
Executive Office of the President
.
Funds appropriated to the President
Department of Health, Education, and
Welfare
Treasurv Department
General Services Administration
Other independent agencies: Selective
Service System

9
18

17

20

16
48

62

52
43

80

Total, national defense

150 INTERNATIONAL
AND FINANCE

84

87

136

-30

-59

53,198

Total 059.

151

18,676
15,700
16,408

Military assistance:

Funds appropriated to the President
058

16,981
14,911
19,881

2,625

Total051

14,656
12,603
13,836

49,363

Military personnel
Operation and maintenance
Procurement
Research, development, test, and evaluation
Military construction
Family housing
__ _
Civil defense
Revolving and management funds_ _

65,758

62,205

50,163

56,560

60,541

293

312

324

300

312

313

2
3

2
3

2
4

35
3

2
3

2
4

9

10

10

7

9

9

307

328

339

346

327

328

AFFAIRS

Conduct of foreign affairs:

Department of State
Other independent agencies:
Foreign Claims Settlement Commission
Tariff Commission
United States Arms Control and Disarmament Agency

Total 151

—-

See footnotes at end of table, p. 159.

200-000 O—J66




10

146

THE BUDGET FOR FISCAL YEAR 1967

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1965
actual

1966
1967
estimate estimate

EXPENDITURES
1965
actual

1966
1967
estimate estimate

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

3,852
2
8

3,257
2
8

6

2,440
3
8

2,194
5
8

2,368
8
7

-357

2,953

-532

-309

3,862

3,267

2,960

2,094

1,675

2,074

51

59

56

58

58

58

166

186

185

165

171

179

217

245

241

223

229

237

2,317

1,658

1,617

1,641

1,701

1,539

6,703

5,497

5,157

4,304

3,932

4,177

250 SPACE RESEARCH AND TECHNOLOGY
251 Space research and technology:
National Aeronautics and Space Administration

5,250

5,175

5,012

5,093

5,600

5,300

350 AGRICULTURE AND AGRICULTURAL RESOURCES
351 Farm income stabilization:
Department of Agriculture

2,742

4,313

3,394

3,438

3,134

2,989

205

176

86

285

100

-553

Total 152
153 Foreign information and exchange
activities:
Department of State
Other independent agencies: United
States Information Agency
Total 153
154 Food for Peace:
Department of Agriculture
Total, international affairs
finance

and

352 Financing farming and rural housing:
Department of Agriculture
Department of Housing and Urban Development
Other independent agencies: Farm
Credit Administration

-51

-17

-10

-8

205

176

86

268

90

-612

353 Financing rural electrification and
rural telephones:
Department of Agriculture-

447

474

12

392

193

196

354 Agricultural land and water resources:
Department of Agriculture

363

373

239

341

374

348

Total 352

See footnotes at end of table, p. 159.




147

THE FEDERAL PROGRAM BY FUNCTION
Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW
Description

OBLIGATIONAL
AUTHORITY

1965
actual

BY

EXPENDITURES
1965
actual

1966
estimate

1967
estimate

495

557

441

1

2

496

559

441

457

522

452

4,253

5,895

4,172

4,898

4,313

3,372

104
1,254
657
42

98
1,314
619
21

99
1,290
626
13

91
1,169
586
15

102
1,245
540
26

103
1,290
578
24

13
*
48

14
*
1
59
*

14
*
1
64
3

13
*

14
*
1
57
*

14
*
1
84
3

2,117

2,127

2,110

1,922

1,985

2,098

409
21

375
21

374
22

353
21

400
21

387
22

430

396

396

374

421

409

119

110

136

105

114

141

*
129
2

*
145
3

*
118
2

*
118
2

*
120
2

121
2

131

148

121

120

123

123

152

252

237

134

194

204

*

*

*

*

252

237

194

204

1966
1967
estimate estimate

ADMINISTRATIVE BUDGET
FUNDS—Continued
355

Research and
services:

other

agricultural

Funds appropriated to the President
Department of Agriculture
Other independent agencies: National
Commission on Food Marketing _ _ _
Total 355,
Total, agriculture and agricultural
resources
_
400
401

Total 401

Total 402
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

520
1

*

452
*

48

Forest resources:

Department of Agriculture
Department of the Interior _ _ . . .

403

*

*

NATURAL RESOURCES
Land and water resources:

Department of Agriculture
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.— _ __
Water Resources Council

402

1
456

Recreational resources:

Department of the Interior_ _ _ _ _
Other independent agencies: Historical
and memorial commissions
Total 405
See footnotes at end of table, p. 159.




152

134

*

148

THE BUDGET FOR FISCAL YEAR 1967

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1965

1967
estimate

1966

1965

1967

1966

EXPENDITURES

ADMINISTRATIVE BUDGET
FUNDS—Continued
409

General resource surveys and administration:
Department of the Interior
Total, natural resources

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

96

87

89

94

84

86

3,045

3,119

3,089

2,750

2,920

3,062

*

*

*

727

868

758

795

800

840

87

82

75

80

79

73

814

950

833

875

879

913

369

350

299

473

493

330
1
410

297

417

337
3
386

*

7

6

*

6

7

1

1

*

500

Total 501
502 Water transportation:
Department of Commerce.
_
Department of Defense—Civil
Treasury Department
Other independent agencies:
Atlantic-Pacific Interoceanic Canal
Study Commission
Saint Lawrence Seaway Development Corporation

-2
454

786

830

799

728

749

756

503 Highways:
Department of Commerce

240

111

130

39

11

102

505 Postal service:
Post Office Department

781

930

836

805

878

755

270
1

35
296
4

336

299
15

30
301
14

5
329

Total 502

506 Advancement of business:
Funds appropriated to the President
Department of Commerce
Department of the Interior
Department of Housing and Urban
Development
__ _
Other independent agencies: Small Business Administration
_

Total 506
See footnotes at end of table, p. 159.




-161

152

317

8

243

-45

-323

424

652

344

557

301

-150

149

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1965
actual

EXPENDITURES

1966
1967
estimate estimate

1965
actual

373

322
76

1966
1967
estimate estimate

ADMINISTRATIVE BUDGET
FUNDS—Continued
507 Area and regional development:
Funds appropriated to the President
Department of Commerce
Department of Housing and Urban
Development
Other independent agencies:
Federal Development Planning Committees for Alaska
Federal Reconstruction and Development Planning Commission for
Alaska
Appalachian Regional Commission
Total 507
508 Regulation of business:
Department of Commerce
Department of Justice
Other independent agencies:
Civil Aeronautics Board..
Federal Communications Commission.
Federal Maritime Commission
Federal Trade Commission
Interstate Commerce Commission
Securities and Exchange Commission.
Total 508
Total, commerce and transportation.
550 HOUSING AND COMMUNITY
DEVELOPMENT
551 Aids to private housing:
Department of Housing and Urban
Development
__ _
Other independent agencies: Federal
Home Loan Bank Board

4
121

332
*

125
90

8
183

*

*

1

*

*

1

*

*
*

1

1

*

126

333

374

398

217

193

5
7

5
7

5
7

5
7

5
7

5
7

11
17
3
13
27
15

11
17
3
14
28
16

12
18
3
14
28
18

11
17
3
14
26
15

11
17
3
14
27
16

12
17
3
14
28
18

98

102

105

98

101

104

3,269

3,908

3,421

3,499

3,202

2,672

41

199

90

-613

-457

-485

-205

-262

-352

41

199

90

-818

-719

-836

552 Public housing programs:
Department of Housing and Urban
Development

225

264

280

230

249

261

553 Urban renewal and community
facilities:
Department of Housing and Urban
Development

885

1,224

1,065

420

477

571

Total 551

See footnotes at end of table, p. 159.




150

THE BUDGET FOR FISCAL YEAR 1967

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1965
actual

1967
1966
estimate estimate

EXPENDITURES

1965
actual

1967
1966
estimate estimate

ADMINISTRATIVE BUDGET
FUNDS—Continued
555 National Capital region:
Other independent agencies:
Commission of Fine Arts
Interstate Commission on the Potomac River Basin
National Capital Housing Authority. _
National Capital Planning Commission
National
Capital
Transportation
Agency
District of Columbia
Total 555
Total, housing
development

_.
and

_--.

*

*

*

*

*

*

*
*

*
*

*
*

*
*

*

*
*

1

1

7

2

2

5

118

4
101

19
104

1
61

4
65

10
111

119

106

130

64

71

127

1,269

1,793

1,565

-104

77

123

2,472

3,385

4,222

1,882

2,481

3,621

10
610

10
651

9
624

9
422

9
472

9
477

2

3

6

*

4

6

*

*

*

*

*

*

6

7

7

6

7

7

*

1

26
2

29
2

30
2

25
2

28
2

30
2

*

*

*

*

*

658

702

679

464

523

531

2,947

3,279

3,511

2,827

3,288

3,364

793

1,434

1,750

211

1,210

1,600

community

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 Progress
National Labor Relations Board
National Mediation Board
President's Advisory Committee on
Labor-Management Policy.

Total 652
Public assistance (excluding medical
care for the aged):
Department of Health, Education, and
Welfare

1

653

655 Economic opportunity programs:
Funds appropriated to the President
See footnotes at end of table, p. 159.




151

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1965
actual

EXPENDITURES

1967
1966
estimate estimate

1965
actual

15

43
299

150
364

43
338

157

344

448

14

17

17

1967
1966
estimate estimate

ADMINISTRATIVE BUDGET
FUNDS—Continued
659 Other welfare services:
Funds appropriated to the P r e s i d e n t s .
Department of Agriculture
Department of Health, Education, and
Welfare
Other independent agencies: Railroad
Retirement Board.
_
Total 659
Total, health, labor, and welfare.. _
EDUCATION
Assistance for elementary and
secondary education:
Department of Health, Education, and
Welfare

55
350
168
14

130
405
362
17

354
467
17

587

914

853

513

875

846

7,456

9,713

11,016

5,898

8,377

9,962

488

1,661

1,636

418

730

1,546

681

1.113

1,224

192

473

673

300

300

221

240

-533

981

1,413

413

712

140

420

480

525

309

365

425

24

26

30

24

26

30

366
98

558

643

107

115

252
99

338
106

529

2
*

*
*

700
701

702 Assistance for higher education:
Department of Health, Education, and
Welfare
Department of Housing and Urban
Development.__ _
_ _ - _ _ . __
Total 702
Assistance to science education and
basic research:
Other independent agencies: National
Science Foundation ____ _

1,224

703

704 Other aid to education:
Legislative Branch.
_ __
Department of Health, Education, and
Welfare
._
Department of the Interior
Other independent agencies:
National Capital Planning Commission
National Council on the Arts__
National Foundation on the Arts and
the Humanities
__
Smithsonian Institution

Total 704
Total, education
See footnotes at end of table, p. 159.




2
*

113

37

7
27

16
36

28

2
41

8
43

528

725

840

405

512

723

2,417

4,278

4,225

2,318

2,834

1,544

152

THE BUDGET FOR FISCAL YEAR 1967

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1965
actual

1966
1967
estimate estimate

EXPENDITURES
1965
actual

1966
1967
estimate estimate

ADMINISTRATIVE BUDGET
FUNDS—Continued
800 VETERANS BENEFITS AND
SERVICES
801 Veterans service-connected compensation:
Veterans Administration

2.176

2,311

2,309

2,176

2,311

2,307

802 Veterans non-service-connected
pensions:
Veterans Administration

1.864

2,001

1,983

1,864

2,001

1,978

199

42

142

-8
-42

-73
-740

-16
-148

199

42

142

-50

-813

-164

1,306

1.358

1,380

1,270

1,342

1,376

15
1
247

14

15
246

15
*
263

16

291

12
1
220

206

2

2
*

2
*

2
*

2
*

2
*

265

307

263

235

280

224

5.810

6,018

6,077

5,495

5,122

5,721

11.346

12,000

12,750

11,346

12,000

12,750

852 Interest on refunds of receipts:
Treasury Department

77

91

91

77

91

91

853 Interest on uninvested funds:
Treasury Department

12

12

13

12

12

13

___ 11.436

12.104

12,854

11,435

12,104

12,854

139

229

156

142

166

162

803 Veterans readjustment benefits:
Department of Housing and Urban
Development
Veterans Administration
Total 803
804 Veterans hospitals and medical care:
Veterans Administration
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.
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

See footnotes at end of table, p. 159.




153

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1965
actual

EXPENDITURES

1966
1967
estimate estimate

1965
actual

1967
1966
estimate estimate

ADMINISTRATIVE BUDGET
FUNDS—Continued
902 Judicial functions:
The Judiciary
Other independent agencies: Indian
Claims Commission _ .
__ _

85

93

75

84

93

*

*

*

*

*

*

77

85

94

76

84

94

21
1
2
1

23
1
2
*

26
1
1
*

19
1
2
*

23
1
2
*

25
1
1

*

*

*

*

25

27

28

23

27

28

814

863

875

775

820

864

47
3
2

48
3
2

49
2
2

45
3
2

48
3
2

49
2
2

865

Total 902

76

915

929

825

872

918

598

576

608

606

580

613

*

1

1

903 Executive direction and management:
Executive Office of the President
Funds appropriated to the President
Treasury Department
General Services Administration __..__ _
Other independent agencies: Federal
Radiation Council
_
_____
Total 903
904

Central fiscal operations:

Treasury Department
Other independent agencies:
General Accounting Office
Renegotiation Board
Tax Court of the United States
Total 904
905 General property and records management:
General Services Administration _ _
Other independent agencies: Central
Intelligence Agency

598

906 Central personnel management:
Department of Labor.
_ ___
Other independent agencies: Civil Service Commission
Total 906




nd of table, p. 159.

576

608

606

581

614

57

53

49

57

50

45

116

124

128

117

124

128

174

Total 905

177

177

174

173

173

154

THE BUDGET FOR FISCAL YEAR 1967

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1965
actual

1966
1967
estimate estimate

EXPENDITURES

1965
actual

1966
1967
estimate estimate

ADMINISTRATIVE BUDGET
FUNDS—Continued
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
President's Commission on Law Enforcement and the Administration
of Justice
Subversive Activities Control Board __
Total 908
910

.

380
18

397
21

351
13

377
17

398
20

1
1

*
1
2

*
1
3

*
1

*
1
2

*
1
3

*

1
*

1
*

*

1
*

1
*

394

402

423

366

397

423

8

..

378
14

6
4
76
42
82

53

*
1
49
23
117

-1
5
53
41
77

12

Other general government:

Legislative Branch
Funds appropriated to the President
Department of Defense—Civil
Department of the Interior
Treasury Department
Other independent agencies:

49
52
120

Alaska Temporary Claims Commission

Commission on International Rules
of Judicial Procedure
Historical and memorial commissions
_
Intergovernmental commissions:
Advisory Commission on Intergovernmental relations.
Commission on the Status of Puerto
Rico
Total 910

_-

...

Total, general government

53
36
55

*

65
47
54

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

230

212

197

190

175

179

2,501

2,622

2,612

2,402

2,476

2,591

100

500
-870

75
-647

350
-712

Allowance for contingencies
Interfund transactions 1

Total, administrative budget funds. 106,608 125,982 121,904

96,507 106,428 112,847

TRUST FUNDS
050
051

NATIONAL DEFENSE
Department of Defense—Military:

Department of Defense—Military:
Army
Navy
_
Air Force
_ __
Total 051
See footnotes at end of table, p. 159.




*
5
*

*
6
*

*
6
*

*
5
*

*
6

*
6
*

6

6

6

5

6

6

155

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1965
actual

1966
1967
estimate estimate

EXPENDITURES
1965
actual

1966
1967
estimate estimate

TRUST FUNDS—Continued
057 Military assistance:
Funds appropriated to the President

771

058 Atomic Energy:
Atomic Energy Commission

1

059 Defense-related activities:
Treasury Department

1,136

1,144

745

867

891

*

1

2

*

*

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.

778

1
2

1

*
1,143

1,150

751

875

898

*
5

-169
1
2

155
*
5

63
*

10

2
142

24

*

12

145

29

2
6
*

2
10
*

8

153 Foreign information and exchange
activities:
Department of State
United States Information Agency

19

6
47

-166

179

116

1
6
*

2
3
*

2
8
*

1
9

12

7

6

11

11

*
*

*
*

*
*

*
*

*
*

Total, international affairs and
finance

21

156

36

-160

190

126

250 SPACE RESEARCH AND TECHNOLOGY
251 Space research and technology:
National Aeronautics and Space Administration

1

*

*

*

*

*

*

*

-1
899

-1
570

1
592

898

570

592

1

1

1

Total 151
152 Economic and financial assistance:
Funds appropriated to the President
Department of Commerce
Department of State..
Total 152

350 AGRICULTURE AND AGRICULTURAL RESOURCES
351 Farm income stabilization:
Department of Agriculture
352 Financing farming and rural housing:
DeDartment of Agriculture
Farm Credit Administration
Total 352
354 Agricultural land and water resources:
Department of Agriculture
See footnotes at end of table, p. 159.




1

1

1

*

156

THE BUDGET FOR FISCAL YEAR 1967

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)-Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1965
actual

EXPENDITURES

1966
1967
estimate estimate

1965
actual

1966
1967
estimate estimate

TRUST FUNDS—Continued
355 Research and other agricultural
services:
Department of Agriculture

29

30

31

28

30

30

Total, agriculture and agricultural
resources

30

31

32

927

600

623

20
3

20
2

27
1

24
2

28
3

27
2

23

23

28

26

31

29

402 Forest resources:
Department of Agriculture

28

29

30

24

28

29

403 Mineral resources:
Department of the Interior

1

2

2

1

2

2

404 Fish and wildlife resources:
Department of the Interior

2

2

2

2

2

2

_

2

16

16

1

7

17

409 General resource surveys and administration:
Department of the Interior

129

109

108

79

75

64
142

400 NATURAL RESOURCES
401 Land and water resources:
Department of Defense—Civil
Department of the Interior.__
Total 401

405 Recreational resources:
Department of the Interior

185

179

186

134

144

1
*

51
*

35
*

13
*

22
*

32
*

1

51

35

13

22

32

—

3,895

4,051

4,314

4,027

3,971

4,080

506 Advancement of business:
Department of Commerce _
Federal Deposit Insurance Corporation,

5

7

6

4
-180

6
-220

6
-223

5

7

6

-176

-214

-217

3,780

3,895

Total, natural resources

--

500 COMMERCE AND TRANSPORTATION
502

Water transportation:

Department of Commerce.
Treasury Department
Total 502
503 Highways:
Department of Commerce

Total 506
508 Regulation of business:
Federal Communications Commission. __
Total Commerce and transportation
______
See footnotes at end of table, p. 159.




*
3,901

4,109

4,355

3.864

157

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1965
actual

1966
1967
estimate estimate

EXPENDITURES
1965
actual

1966
1967
estimate estimate

TRUST FUNDS—Continued
550 HOUSING AND COMMUNITY
DEVELOPMENT
551 Aids to private housing:
Department of Housing and Urban
Development
__
Federal Home Loan Bank Board

91

270

135

91
660

1,400

142

500
200

91

270

135

751

1,542

700

423

*
403

6
494

1
*
385

*
1
446

1
3
490

Total 555

423

404

500

385

446

494

Total, housing and community
development

513

674

635

1,136

1,988

1,194

650 HEALTH, LABOR, AND WELFARE
651 Health services and research:
Department of Health, Education, and
Welfare

*

857

3,835

1

54

3,326

502

518

536

415

476

531

*

*

*

*

*

*

Total 551
555 National Capital Region:
National Capital Housing Authority
National Capital Planning Commission.
District of Columbia

652 Labor and manpower:
Department of Labor
653 Public assistance (excluding medical care for the aged):
Department of Health, Education, and
Welfare
-_

654 Retirement and social insurance:
1
The Judiciary _ _ _
Department of Health, Education, and
17,684
Welfare
3,630
Department of Labor
10
Department of State
___
2,664
Civil Service Commission
1,337
Railroad Retirement Board

1

1

*

1

1

19,034
3,392
10
2,770
1,419

23,223
3,387
10
2,851
1,584

17,460
2,715
8
1,402
1,185

20,787
2,415
9
1,608
1,240

21,819
2,416
10
1,733
1,274

25,326

26,625

31,057

22,770

26,060

27,254

*

*

*

Total 654
655 Economic opportunity programs:
Funds appropriated to the President
659 Other welfare services:
Department of Health, Education, and
Welfare
Total, Health, Labor, and Welfare




*

*
25,828

28,000

35,428

23,186

26,589

31,110

158

THE BUDGET FOR FISCAL YEAR 1967

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (m Bullions of dollars) —Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1965
actual

1966
1967
estimate estimate

EXPENDITURES

1965
actual

1966
1967
estimate estimate

TRUST FUNDS—Continued
700 EDUCATION
704 Other aid to education:
Legislative Branch.
National Foundation on the Arts and
the Humanities
_
Smithsonian Institution

2

2

2

*

1
•

Total 704

2

Total, education

2

2

2

2
*

*

1
*

2
*

3

4

2

3

4

2

3

4

2

3

4

805 Other veterans benefits and services:
Department of Defense—Civil
Veterans Administration
American Battle Monuments Commission

7
712

7
723

11
724

7
617

7
547

9
673

*

*

*

*

*

*

Total, veterans benefits and services

719

730

735

624

554

682

22

23
*
*

21

*

22
*
*

*

23
*
*

23
*

22

22

23

21

23

23

2

*

*

*

*

*

800

900
904

VETERANS
BENEFITS
SERVICES

AND

GENERAL GOVERNMENT
Central fiscal operations:

Treasurv DeDartment
General Accounting Office. _ _ _
Tax Court of the United States
Total 904
905

-

General property and records management:

General Services Administration
906

Central personnel management:

Department of Labor
908

*
*

Protective services and alien control:

*

*

*

*

*

Total, general government

24

23

*

*

*
*
*

*

*

*

23

21

23

24

-210
-638

Total 910

-166
-795

-48
-767

29,637

33,786

37,882

Denosit funds

Interfund transactions x
-_

.

See footnotes at end of table, p. 159.




*

*

Commission on the Status of Puerto Rico.

Total, trust funds

*
*

Department of Justice
910 Other general government:
Treasurv Deoartment
Historical and memorial commissions

*

32,002

35,048

42,584

*

THE FEDERAL PROGRAM BY FUNCTION

159

*Less than $500 thousand.
1

Interfund transactions shown as deduct lines are as follows:

Administrative Budget
Interest on loans to Government-owned enterprises:

actual

Commodity Credit Corporation
„
$459
Expansion of defense production
125
Export-Import Bank of Washington
15
Housing and Urban Development
147
Panama Canal Company
11
Small Business Administration.
31
Veterans Administration
36
St. Lawrence Seaway Development Corporation
4
Power marketing agencies (proposed)
Other
24
Fees and other charges:
Southwestern Power Administration
Bonneville Power Administration
:
Panama Canal Company for annuity payment and cost of Canal Zone
government
17
Total, administrative trust funds

1966
estimate
$299
15

15
126
12

39
33
4
45
32
3
6

1967
estimate
$322
35
7
130
12
45
24
4
48
57
3
6

18

19

870

647

712

8
8

8
8

8
8

3

4

436
90
24

445
95
25

520
94
27

1
58

1
52

1
52
16
15

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
FOASI from Federal supplementary medical insurance trust 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
Federal hospital insurance trust fund from railroad retirement account.
National Park Service from District of Columbia
Foreign Claims Settlement Commission from alien property and claims
funds
Total, trust funds




2

1

15

10

142

24

638

795

767

PART 5

THE FEDERAL PROGRAM
BY AGENCY

161

200-000 0—66




11

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.1—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.
Some is in the form of contract authorizations which permit obligations,
162




THE FEDERAL PROGRAM BY AGENCY

163

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.
Most appropriations for current operations are made available for
obligation only within the year (1-year appropriations), Some are
for a specified longer period (multiple-year appropriations). Some,
including most of those for construction, some for research, and nearly
all trust fund appropriations are made available by Congress until
expended (no-year appropriations), and remain available for obligation
until the objectives have been completed.
Obligations incurred.—Following the enactment of 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).




164

THE BUDGET FOR FISCAL YEAR 1967

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. Some
incidental sums received are accounted for as reimbursements to appropriations, and also netted against expenditures. If 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 the}^ 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 until the subsequent
expenditure in payment of such obligations is made.
In addition to the obligated balances, unobligated balances may also
be carried forward in multiple-year or no-year accounts which are
still available for obligation. Therefore, a change in the amount of
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 1966 AND 1967

Data for 1966.—Congress has already acted on appropriations and
other new obligational authority for fiscal year 1966, but additional
supplemental amounts are estimated to be required in certain cases.
Where the word "enacted" is used in the budget in reference to 1966,
as in tables 4 and 5, the amounts represent NOA already voted by




THE FEDERAL PROGRAM BY AGENCY

165

Congress (including the amounts likefy 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 needed supplementals as well as NOA
which has been enacted. Certain standard footnotes are used in the
following table to distinguish the status of proposed items for 1966
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 1967.—This budget is complete as to the estimates for
1967. 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 transmittal of the proposed text of the appropriation language (or other
proposal) will be made separately. In certain tables, these items for
separate transmittal and expenditures therefrom are identified in
separate columns, or by special footnotes, as in the following table.
Where there is no separate identification, the estimate for 1967 includes both the amounts proposed herein and the amounts proposed
for separate transmittal.
Changes from 1966 to 1967.—The table which follows gives data for
1965, 1966, and 1967, with figures on increases or decreases for 1967
compared with 1966. These changes include certain mandatory cost
changes as well as proposals of the President with respect to programs.
Special allowances.—Lump-sum allowances are included in the
summary table to cover possible additional supplemental proposals
which may be required for 1966 and 1967. The need for such supplementals may arise from requirements not now foreseen for existing
programs, or from the enactment of legislation not specifically provided for in the budget, either because it is not proposed by the
President, or because its cost in either of the 2 years is relatively
small. In some cases, also, legislative proposals may involve all or
a number of agencies, and it is not feasible to show individual items
under the agencies concerned.
Annexed budgets.—The expenditures and revenues of seven selfsupporting Government agencies or programs, not subjected to Presidential review, are set forth in a memorandum section at the end of
part 5, and some details on them appear as annexed budgets in the
appendix,




ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)

S

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 1967. Functional code numbers are cross references to the
lines in table 14 (pp. 145 to 159) 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

1965
enacted

1966
estimate

1967
estimate

Increase or
decrease(—)

Explanation of NOA requests

M
w

d

o
o

LEGISLATIVE BRANCH
SENATE
General and special funds:
Compensation of the Vice President and Senators
901

NOA

2,877

Exp.

2 ,854

Mileage of President of the Senate
and of Senators
901

NOA
ExP.

58
52

Expense allowances of the Vice
President and majority and
minority leaders
901

NOA
Exp.

14
14

Salaries, officers

NOA

23,014

ExP.

22,032

NOA

293

Exp.

287

(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.)

and employees
901

Office of the Legislative Counsel of
the Senate
901

Senate procedures.




-901 NOA
Exp.

3

GO
O

23,854
B643

Contingent expenses of the Senate:
Senate policy committees. __901 NOA
Exp.

394

43

Furniture
From 1964 NOA
From 1965 NOA

31

NOA
Exp.
Exp.

408

43
l

44

31

3

3
1

262

Automobiles and maintenance NOA
901
Exp.
901

395
10

B

B

33
17
19

Exp.
Folding documents

901

NOA
Exp.

Mail transportation

901

NOA
Exp.

Miscellaneous items

901

NOA

4,677

4,933

39

39
l

41

1

17

17

3,448

Inquiries and investigations_901 NOA

3,388

4,777 \
B
117 /

4,499
47

B

42
17

>
f

ha
W

o
o
w
i>

12

-80

2,984

>

Exp.

O

2,850
91

Postage stamps

NOA
Exp.
Stationery (revolving fund) _901 NOA
Exp.
Communications
B

901

901

NOA
Exp.

62
60
256

9
1

256

256

15

1
5

251

15
13 !

Proposed for separate transmittal, civilian pay increase supplemental.




ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1966

Increase or
decrease ( - )

1967

Explanation of NOA requests

LEGISLATIVE BRANCH—Continued
SENATE—Continued

n

General and special funds—Continued

Payments to estates and widows NOA
of deceased Members of the Exp.
Senate
._
901

52
52

Senate restaurant fund _. _ _ _ _ 901 Exp.

16

Recording studio revolving fund
901

EXD.

-104

NOA

34,834

Exp.

Total, Senate

d

33,261

o
36,638
B
807
35,696

I

37 ,635

190

35 ,900

204

14,139
B
8

i

14,149

2

ui

o
>

HOUSE OF REPRESENTATIVES
Compensation of Members

901 NOA

12,382

Exp.

11.976

Mileage of Members and expense NOA
allowance of the Speaker 901 Exp.

200

Salaries, officer and employees.901 NOA

9,674




200

194
10,695
B9A1
£01

Exp.
Members'clerk hire

CO
O5

200

9,536

901 NOA

25,212

Exp.

25,151

i

11 ,411

455

30 ,000

753

1

28,500
B
747 !

Contingent expenses of the House:
Furniture
901

NOA
Exp.

175
152

140

365

225
2,877

Miscellaneous items

901

NOA
Exp.

3,817
3.720

4,123

7,000

Reporting hearings

901

NOA
Exp.

223

223

223

111
4,500 1
B
97

4,650

53

136 1

141

1

2,880

480

Special and select committees NOA
901
Exp.

4,516

Office of the Coordinator of In- NOA
formation
901
Exp.

136

Telegraph and telephone.. _901 NOA
Exp.

2,400
1.802

2,400

Stationery (revolving fund) _901 NOA
Exp.

1,046
1.105

1,046

1,046

Attending physician's office.901 NOA
Exp.

17
17

20

21

229

229

3.836
B4

133

Postage stamps

901

NOA
Exp.

229
244

Folding documents

901

NOA

f

143
143

Exp.
Revision of laws

901

NOA
Exp.

B

25
25

27 {
l

B

1

Proposed for separate transmittal, civilian pay increase supplemental.




28

o
o
S3

1

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and fu

code

1965

Increase or
decrease ( - )

1967

1966

LEGISLATIVE BRANCH—Continued
HOUSE OF REPRESENTATIVES—Con.
General and special funds—Continued

Contingent expenses of the House—Continued
Speaker's automobile
901 NOA
Exp.

12

12

13

11

Majority leader's automobile NOA
901 Exp.

12

12

13

Minority leader's automobile NOA
901 Exp.

12
11

12

13

New edition of the United States NOA
Code
901 Exp.

150
35

150

150

New edition of the District of NOA
Columbia Code
901 Exp.

100
39

100

100

Payments to widows and heirs of NOA
deceased Members of Congress Exp.
901

45
45

House of Representatives res- Exp.
taurantfund
901

-50

Recording studio revolving fund Exp.
901

-32




Explanation of NOA requests

Advances and reimbursements_901 Exp.

4

Total, House of Representa- NOA
tives.
ExP.

60,525

66,664 1

72,632

4,850

58,212

65*905

70,883

4,978

Statements of appropriations.901 NOA
Exp.

13

13

13

Joint Committee on Reduction of NOA
Nonessential Federal Expenditures
901 Exp.

35

Joint Economic Committee,901 NOA

265

Exp.

229

Atomic NOA
901
Exp.

348
285

Joint Committee on Printing_901 NOA

151

Exp.

136

Joint Committee on Inaugural NOA
Ceremonies
901 Exp.

265
242

Joint Committee on
Revenue Taxation

390

JOINT ITEMS

Joint Committee
Energy

on

Internal NOA
901
Exp,

13

j

36

360 |
B9

372

3

347 )
B
8

358

3

16
5

1

435

36

125

100

35
l

B

35

151
B4

1

390 j
B
9

327

Joint Committee on Immigration NOA
24
24 1
B
and Naturalization
901
l
Ex P .
23
Proposed for separate transmittal, civilian pay increase supplemental.




o
o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
stimati

Increase or
decrease ( - )

1967
stimat

LEGISLATIVE

^1
to

Explanation of NOA requests

BRANCH—Continued

JOINT ITEMS—Continued
w
d

General and special funds—Continued

Joint Committee on Defense Pro- NOA
duction
901
Elxp.
Capitol Police:
General expenses

80

B

83
2

71

901 NOA
Exp.

37
11

50

50

901 NOA
Exp.

461
228

809

809

Education of Pages.

901 NOA
Exp.

86
76

86

86

Official mail costs

901 NOA

4,723
4,723

6,512

6,936

424

6,877

8,857
B
34

9,459

568

6,414

8,418

9,782

1,364

588

648

46

645

49

Capitol Police Board

Exp.
Total, joint items

NOA
Exp.

GO

O
>
tr1
H4

ARCHITECT OF THE CAPITOL
Salaries




901 NOA
Exp.

548

B14

564

596

Increase is for 2 additional positions and changes under the
Classification Act.

Contingent expenses

901 NOA j
Exp.
Capitol buildings and grounds:
Capitol buildings
901 NOA
NOA
Exp.

Reappropriation _

Extension of the Capitol:
Contract authorization (perma- NOA
nent, indefinite)
901
Liquidation of contract authorization.
Exp.
Capitol grounds.

.901 NOA
Exp.

Senate Office Buildings
Reappropriation

901

NOA
NOA
Exp.

50
26

50
49

1,764

1,640
A
27
B
13

1,613

1,983
A
23

1,615

House Office Buildings
A
B

-67

The decrease is mainly because 1966 included nonrecurring items
of painting the Dome and west central section of the Capitol
Building.

66
1,626

-387

A4

w

300

025)
423
740
619
2,464
153
2,628

-300

(300)
549

(-300)
-549

638
M0
761
A
8

790
790

2,864
A
31

2,530

-365

2,758
A
26

2,705
A
5

-74

58

3,807

4,019
4,019

w

22

.901 NOA

53

Exp.

Senate garage.

This item is for unforeseen expenses.

50 !
50

54

54
M
54

901 NOA
Exp.

3,230
2,459

3,818

142
]

Increase is for 8 additional positions, additions to the water
supply system, and landscape improvements of 2 triangles.

The decrease is mainly because 1966 included nonrecurring items
of replacement of plumbing system, and renewal of electrical
wiring, Old Building.

O
G
W

W

4 j The 1967 estimate provides for maintenance, repairs, personnel
and all other necessary expenses.

58
212 The 1967 increase results from addition of 7 positions and wage
201 i board and Classification Act changes.

1<

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




•si

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

Increase or
decrease ( - )

1967

1966

Explanation of NOA requests

LEGISLATIVE BRANCH—Continued
ARCHITECT OF THE CAPITOL—Con.
General and special funds—Continued
Acquisition of property, construction and equipment, additional House Office Building:
Contract authorization (perma- NOA
nent, indefinite)
901
Liquidation of contract authorization.
Exp.

3,500

4,392

(8,000)
11,647

(12,500)
16,189

901 NOA

2,665

2,752

Capitol Power Plant

A1fl

Exp.

2,169

2,860

-4,392
6,905

}

(-12,500)
-9,284

2,778

16

2,778 1

A8

Expansion of facilities, Capitol Exp.
Power Plant
901

1,024

1,316

608

-89

A2

-30

Changes and improvements, Cap- Exp.
itol Power Plant
901

4

20

-20

Furniture and furnishings, addi- Exp.
tional Senate Office Building
901

10

64

-64

Planning for restoration of
Senate Chamber and Old
preme Court Chamber in
Capitol

32

4

-4




Old Exp.
Suthe
901

1

-708

30

Additional office building for the Exp.
U.S. Senate. _
. _
.901

The increase is due principally to rehabilitation of the stoker.

s

Library buildings and grounds:
Structural and mechanical care NOA
901
Reappropriation
NOA
Exp.
Furniture and furnishings..901

NOA
Exp.

2,382
413
1,988
220
,86

879 1
M3
265
3,668
A
l!

381 The increase is due mainly to replacement of book conveyors, re-

1,538

placement of 3 passenger elevators, installation of additional
elevator, and construction changes in cellar area.
2,770 )
42

75 Increase is primarily for office machines, card catalog cases, book41
keeping machines, file cabinets, and rotary power files.

349
349

274
308

-908

/

3

W

Library of Congress James Madison Memorial Building:
Contract authorization
901 NOA
Liquidation of contract authorization.
Exp.

-75,000

75,000
(500)

375

Total, Architect of the NOA
Capitol.

18,249

Exp.

25,459

(-500)
-250

125

93,502 )
A
92
B
27
35,401

1

14,373

-79,248

23,416 1
AJ4

New construction project authorized Oct. 19» 1965.

-12 t 049

j

O

f

w

BOTANIC GARDEN
Salaries and expenses

901 NOA
Exp.

500

526

538

496
A

538 \
A
1 i

5

Total, Botanic Garden

901 Exp.

6

NOA

500

Exp.

Relocation of greenhouses

532

A

38
-3

467 1
A
6
499

f

i

I

repairing metal doors and windows of the main conservatory.

3

5

A
B

65 The increase is mainly to provide for cleaning, refmishing and

467 )
A
6 \

tei

o

65

538

538
A
l

I

1

35

1

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




Oi

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967

Explanation of NOA requests

decrease(—)

LEGISLATIVE BRANCH—Continued

3

LIBRARY OF CONGRESS
General and special funds—Continued

Salaries and expenses.

13,462

1,441

13,212

1,359

2,266

193

2,251

215

3,017

426

2,984

411

4,564

464

4,488

299

780
806

850
850

70
44

110
109

125
152

125
125

-27

2,459

2,675

3,097

415

2,317

2,494

2,983

489

11,738
B
283 !
11,853

_704 NOA

11,002

Exp.

11,421

Copyright Office: Salaries and ex- NOA
penses. _ __ .
704
Exp.

1,914
1,999

2,021
B
52
2,036

Legislative Reference Service: Sal- NOA
aries and expenses. _ . _ _ _ _ 704
Exp.

2,413

2,524

2,471

]
2,573

Distribution of catalog cards: NOA
Salaries and expenses
704
Exp.

3,810

4,035

3,565

4,189

Books for the general collections NOA
704 Exp.

670
665

Books for the law library

704 NOA
Exp.

Books for the blind: Salaries and NOA
expenses. _
704
Exp.




1

B67

B65

B7

1

}

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.

d

Provides for workload increases in most of the activities of the
office.
Continues to provide research and analysis, preparation of indexes
and digests, and other reader and reference services.
Continued increase in sales activity is expected. Costs are generally recovered from sales income.
Will continue to acquire research materials, foreign newspapers
and periodicals, and materials in science and technology, and to
preserve deteriorating materials.
Objective will be to continue to improve the Library's coverage of
law materials.
Estimate will allow procurement of braille books, more titles, and
copies of talking books and other improvements in service to the
blind.

n

Organizing and microfilming the NOA
papers of the Presidents: Sal- Exp.
aries and expenses
704
Preservation of motion pictures NOA
704 Exp.
Collection and distribution of Li- NOA
brary materials (special foreign
currency program)
704 Exp.

I

M
10

Indexing and microfilming the Exp.
Russian Orthodox Greek Catholic Church records in Alaska.704
Oliver Wendell Holmes devise NOA
fund (permanent, indefinite, Exp.
special fund)
704
Intragovernmental funds:

Estimate provides for continuation of program to arrange, index,
and microfilm presidential papers in the Library's collections.

13
1

15
2

13
1
13
1

113 I

50
1
6

50
13
1

50
50

-63

Estimate will allow continued conversion of paper prints and
nitrate films to safety base film.

2,722

873

Program utilizes surplus foreign currencies to acquire and distribute foreign library materials.

2,722

873

1,542
1,187

13
1

1,845 i
B4
1,849

2

5

5

8
15

7
36

6
36

Principal and interest on the fund will be used primarily to continue preparation of the history of the Supreme Court.

-44

Advances and reimbursements_ 704 Exp.
24,089
Total, Library of Congress

NOA
23,848

25,913 1
B478
26,220

30,272

3,881

29,819

3,599

4

Exp.

>

GOVERNMENT PRINTING OFFICE
General and special funds:

Printing and binding

901

NOA
Exp.

18,000
17,911

20,500
19,764

Office of Superintendent of Docu- NOA
ments: Salaries and expenses_910
Exp.

5,562

5,829 1

5.506

5,950

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

2,500
425

21,500
21,900

1,948

B

6,156

Proposed for separate transmittal, civilian pay increase supplemental.




6,206

1,000
2,136

Appropriation covers all printing, binding, and distribution for
the Congress, or as otherwise authorized by law.

256 Estimate covers costs of sales functions, depositary library dis-

26
5
-1,948

tribution, distribution for other agencies and Congress, and
cataloging.

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1966

1967

Explanation of NOA requests

Increase or
decrease ( - )

LEGISLATIVE BRANCH—Continued
GOVERNMENT PRINTING OFFICE—
Continued
ft)

General and special funds—Continued
46,663
14.182

Acquisition of site and construe- NOA
tion of buildings
910 Exp.

Intragovernmental funds:
Government Printing Office re- Exp.
volving fund
910
Total, Government Printing NOA
Office.
Exp.
Total, Legislative Branch___. NOA




Exp.

-6,388

26,062
17,454
171,137
165,180

-8,674

26,329 1
B
71
18.9J8
258,370
A
98
B
2,535
188,616
A
83
B
2,511

46,663
14,182

Estimate provides for new buildings, equipment, and moving
expenses.

-7,976

698

(Earnings of $7.6 million are projected on sales of publications
estimated at $15 million. Printing and binding operations,
estimated at $140 million, are expected to break even.)

74,319

47,919

34,312

15,324

239,228

-21,775

204,626
A
15
B
24

13,455

3
GO

THE JUDICIARY
SUPREME COURT OF THE
UNITED STATES
General and special funds:
Salaries

2,003

37

1,957

1,997

40

138
131

138
133

138
138

5

902 NOA
Exp.

120
105

120
119

120
120

Care of the building and grounds NOA

305

314

902 NOA

1,894

Exp.

1,852

Printing and binding Supreme NOA
Court reports902 Exp.
Miscellaneous expenses

on?

1,925
B4I

AS

Exp.

359

326

i

1

1

1

319 \
A
1

A4

8
8

8
8

NOA
Exp.

35
37

38
38

38
38

Total, Supreme Court of the NOA
United States.

2,500

Exp.

2,491

Books for the Supreme Court..902

Provides for the purchase, exchange, lease, driving, maintenance,
and operation of an automobile for the Chief Justice.
Estimate covers books and periodicals.

37

2,544
A
5
B
41 )
2,581
M

2,627

i

475

19

475

20

2,621
A
l

i

37

COURT OF CUSTOMS AND PATENT
APPEALS
Salaries and expenses

441

Exp.
A
B

_._902 NOA

414

450
B
6
455

Proposed for separate trans mittal, other than pay increase supplemental.
Proposed for separate trans mittal, civilian pay increase supplemental.




H

Estimate allows for expenses as approved by the Chief Justice.

-10
1
1

9
9

Automobile for the Chief Justice NOA
902 Exp.

Estimate covers cost of printing and binding advance opinions,
preliminary prints and bound reports of the Court.

Estimate covers work of the Architect of the Capitol in the care

319

i

Estimate provides for salaries of the Chief Justice and 8 Associat
Justices and all other officers and employees.

Estimate includes an additional clerical position for the Clerk's
office and an assistant librarian.

o
o
w

I

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands o* dollars)—Continued
1965
enacted

Account and functional code

!966

J967

Increase or
decrease ( - )

Explanation of NOA requests

THE JUDICIARY—Continued
CUSTOMS COURT

General and special funds—Continued
Salaries and expenses

902 NOA
Exp.

1,222

42

1,053

1,159
B
21
1,174

1,220

46

1,272

1,300

1,343

29

1.340

30

1,119

Estimate includes an additional law librarian, and an increase
for other services.

COURT OF CLAIMS
Salaries and expenses

902 NOA

Exp.
COURTS OF APPEALS, DISTRICT
COURTS, AND OTHER JUDICIAL
SERVICES
Salaries of judges

902 NOA
Exp.

Salaries of supporting personnel NOA
902
Exp.
Fees and expenses of
appointed counsel

The increase provides funds for a librarian position.

3
14,500
14,000
33,550
33,206

court- NOA
902 Exp.

Fees of jurors and commissioners NOA
902
Exp.




1,244

B14
1,310

14,500
14,480

5,686

310

14,785

305

37,433

2,251

37,383

2,259

7,040
7,040
7,400

4,040

34,292
B

890

35,124
3,000
2,420

5,750

14,810

6,000
M,165
5,979
A
1,050

7,285
A
115

4,620
235
371 !

The estimate provides for an increase in senior and resigned
judges and an increase in the number of judges to be paid.
The increase provides funds for 248 additional positions for the
courts of appeals and district courts.
The increase will cover the cost of implementing the Criminal
Justice Act of 1964.
The increase covers statutory increases in the attendance fees
and subsistence allowances of jurors.

Travel and miscellaneous ex- NOA
penses
902 Exp.

4,710
4,688

4,910
4,888

5,570
5,550

660
662

Increase covers expenses in support of new personnel and
cost of communications, supplies, equipment, and lawbooks.

Administrative Office of the U.S. NOA
Courts
902
Exp.

1,701

2,394

560

1,692

1,800 1
B
34
1,829

2,382

553

Increase includes funds for administration of the Criminal
Justice Act of 1964; expansion and improvement of the research
and statistical programs; and to cope with an increased workload.

Salaries of referees (special fund) NOA
902 Exp.

3,900
3,774

4,314
4,289

4,314
4,314

25

Estimate is for salaries and related benefits of referees in bankruptcy.

Expenses of referees (special fund) NOA
902
Exp.

5,955

6,425 |
B
135
6,473

6,949

389

6,905

432

85,910

8,445

85,644 1
A
115

9,227

80,694 1
M,170

91,577

8,572

81,002
1,054

91,300 1
A
116

9,360

5,808

Total, courts of appeals, dis- NOA
trict courts, and other
judicial services.
Exp.

70,066

Subtotal, The Judiciary

NOA

75,398

Exp.

74,056

Add: Court facilities and furnish- NOA
ings items requested under the Exp.
General Services Administration
(contra)
902

75,241 1
1,165
1,059
75,482
A
1,050

1,031
1,344

B

68,853

A

1,560
1,864

NOA

76,429
75,400

93,426

8,861

81,787
1,054
1.079

93,243 1
A
U6
B
62

9,501

A

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




289
141

82,254
1,170

A

B

A
B

1,849
2,005

o
o
w
g

o
4

Exp.

Total, The Judiciary

A

Increase provides for additional clerical personnel and expenses
of referees due to increased workload.

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1967
estimate

1966
estimate

1965
enacted

! Increase or
j decrease ( —)

Explanation of NOA requests

00

to

EXECUTIVE OFFICE OF THE PRESIDENT
COMPENSATION OF THE
PRESIDENT

a

General and special funds:
Compensation of the President_903 NOA

Exp.

150
150

150
150

2,855

2,855

The President receives a salary of $100 thousand and an expense
allowance of $50 thousand annually.

150
150

903

NOA

o
K

THE WHITE HOUSE OFFICE
Salaries and expenses

d

BftC

Exp.

2,872

903 NOA

1,375

Exp.

1,090

1,500
-85
1,415

NOA
Exp.

696
686

7,307

7,973
33
131

Exp.

7,150

8,097

2,926

15

2,945

19

1,500

85

1,500

85

The President uses this appropriation for staff assistance on
special problems. Transfer of $85 thousand is proposed for
1966 to meet civilian pay increases of the White House Office.

692
692

694
702

_ _. 903 NOA

j1

2,955

—2
-10

These funds provide for care, maintenance, and operation of
the Executive Mansion.

9,230

1,126

9,165

1,068

The Bureau assists the President in the discharge of his budgetary, management, and other executive responsibilities. Increase reflects additional staffing for program examination
and evaluation, and the reestablishment of a small field service.

This office provides the President with staff assistance and
administrative services.

SPECIAL PROJECTS
Special projects

_

_

.

B

i

EXECUTIVE MANSION
Operating expenses

903

BUREAU OF THE BUDGET

Salaries and expenses




!

o

Intragovernmental funds:

Advances and reimbursements-903 Exp.
Total, Bureau of the Budget.. NOA
Exp.

-61

11

7,307

7,973 1
B
131
8,169

7,089

-11
9,230

1,126

9,165

996

790

59

781

41

COUNCIL OF ECONOMIC ADVISERS
General and special funds:

Salaries and expenses

903 NOA
Exp.

Intragovernmental funds:

697
667

723 1
B
8
740

-12

Advances and reimbursements,903 Exp.
Total, Council of Economic NOA
Advisers.
Exp.

655

723
B
8
746

500
459

525
505

i

»

59

781

35

d

to
o
o

NATIONAL AERONAUTICS AND SPACE
COUNCIL
General and special funds:

Salaries and expenses

903 NOA
Exp.

525
505

The Council advises and assists the President on policies, plans,
and programs in aeronautical and space sciences.

NATIONAL SECURITY COUNCIL
Salaries and expenses

903 NOA
Exp.

627
608

660
15
658

B

i

B Proposed for separate transmittal, civilian pay increase supplemental.




3

K

-6

6

697

The Council advises the President on economic programs and
policy. Increase reflects cost of additional staff proposed for
1967.

m

-11

654

-4

The Council advises the President regarding national security
policies.

a

ANALYSIS OF NEW OBL1GATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

1967

Increase or
decrease(—)

Explanation of NOA requests

EXECUTIVE OFFICE OF THE PRESIDENT—Continued

s

OFFICE OF EMERGENCY PLANNING
General and special funds—Continued
Salaries and expenses
903 NOA

4,840

Exp.

4,464

State and local preparedness. .059 NOA
Exp.

1,500
639

Civil defense and defense mobili- NOA
zation functions of Federal
agencies
059 Exp.

4,365
3,915

903 Exp.

45

Emergency supplies and equip- Exp.
ment
059

10,705
9,066

227

5,000

337

2,270
2,100

1,042
1,310

1,200

1,080

-120

4,365 1
B
86
4,886

4,821

370

4,800

-86

80

2

Total, Office of Emergency NOA
Planning.
Exp.

5,096

1,228
790

Salaries and expenses, telecom- NOA
munications
903 Exp.

4,955 |
B
-86
4,663

Research and development




-80

This Office advises and assists the President in determining policy
for and in planning, directing, and coordinating the total nonmilitary defense program.
The Director of Telecommunications Management advises and
assists the President in coordinating telecommunications activities. Increase reflects costs of additional research.
Financial assistance for State and local planning will be completed
under 1965 appropriation.
Increase will strengthen emergency planning done by other
agencies under direct guidance from Office of Emergency
Planning.
(This activity was transferred to Department of Defense and
Public Health Service by Executive Order.)
(Financing has been transferred to the "Salaries and expenses,
Office of Emergency Planning" account.)

10,548
11,619

12,187
12,980

1,639

1,361

II
3

OFFICE OF SCIENCE AND
TECHNOLOGY
Salaries and expenses

_ 903 NOA
Exp.

976
930

1,070
1,074

1,360
1.350

290
276

The increase is for additional staff to advise and assist the President in developing policies and evaluating programs relating to
science and technology.

566

2

576

2

This Office directs U.S. participation in negotiations under the
Trade Expansion Act, including the Sixth Round of negotiations
under the General Agreements on Tariffs and Trade.

SPECIAL REPRESENTATIVE I'OR
TRADE NEGOTIATIONS
3

903 NOA

556

Exp.

562

556 \
B
8
574

Advances and reimbursements:
Federal Radiation Council..903 Exp.

-72

37

903 Exp.

-79

31

Exp.

-151

68

Total, Executive Office of the NOA
President.
Exp.

26,444

27,254 1
B
162
28.450
B
156

Salaries and expenses _.

H

MISCELLANEOUS
Intragovernmental funds:

Presidential committees

Total, miscellaneous

B

24,018

-37

(A direct appropriation is recommended under "Other Independent Agencies.")

23

-8

(Covers 5 presidential committees financed by advances from
participating agencies. Three will have expired or been abolished by the end of 1966; the President's Committee on Consumer Interests is to be financed through the Department of
Labor in 1967, and the President's Committee on Equal
Opportunity in Housing will continue to receive member contributions.)

23

-45

30,619

3,203

31.315
B
6

i

i
SI

2.715

Proposed for separate transmittal, civilian pay increase supplemental.




00
O

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

Explanation of NOA requests

Increase or
decrease ( - )

1967

1966

F U N D S APPROPRIATED TO THE PRESIDENT
ALASKA PROGRAMS
General and special funds:
Transitional grants to Alaska.910 NOA
Exp.

g
-4,500
-4,566

Payment of grants to assist in recovering from the earthquake of
Mar. 27, 1964, has been completed.

15,000

-115,000

43,000

-107,461

Supplemental in 1966 will finance eligible disaster relief work in
16 States where presidential declarations have been made and
will provide funds for disasters that may occur during the
remainder of fiscal year 1966.

4,500
4,566

522

s

DISASTER RELIEF
Disaster relief

659 NOA

55,000

Exp.

43,461

55,000 1
75,000
115,461 1
A
35,000
A

U2

EMERGENCY FUND FOR THE
PRESIDENT
Emergency fund for the President NOA
903 Exp.

O

o
>
1,000
940

1,000
1,000

1,000
1,000

59,553

-123,137

-147,864

-24,727

300
335

250
400

350
370

100
-30

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

(Reduction in 1967 is due to increased sales of minerals and metals
inventory.)

EXPENSES OF MANAGEMENT
IMPROVEMENT
General and special funds:
Expenses of management improve- NOA
ment
903 Exp.




This appropriation enables the President to improve management
organization, and operation of the executive branch.

to
Oi

INTERNATIONAL FINANCIAL
INSTITUTIONS
A

Subscription to Asian Develop- NOA
ment Bank
152 Exp.

120,000
10,000

A

A

A

20,000
10,000

—100,000

Suppiementals will provide the full commitment for callable
capital stock and two of five equal installments of paid-in
capital recommended in proposed legislation.
Estimate for 1967 will provide the third of 3 equal installments
for the Bank's Fund for Special Operations.

Investment in Inter-American NOA
Development Bank
152 Exp.

455,880

455,880

250,000

-205,880

Subscription to the International NOA
Development Association. _ _ 152 Exp.

61,656
61,656

104,000

104,000
70,000

70,000

Increase in quota in the Interna- NOA 1,035,000
tional Monetary Fund
152 Exp. 258,750
Total, international financial NOA
institutions.
Exp.

1,552,536
320,406

Estimate for 1967 will provide the second of 3 equal installments
comprising the U.S. share of an expansion of IDA resources.
(Increase in quota was fully financed in 1965.)

A

559,880
120,000
10,000

A

354,000
20,000
70,000
A
10,000

A

-305,880
70,000

3

MILITARY ASSISTANCE
Military assistance
057 NOA 1,055,000
Contract authorization (per- NOA 75,000
manent, indefinite).
Liquidation of contract au1,228,579
thorization.
Exp.

1,170,000 1
300,000
A (375,000)
1,125,000
A 225,000

D

917,000

-553,000

10,000

85,000

Funds to meet combat operations in Southeast Asia are requested
in the Department of Defense budget. Contract authorization
results from the exercise of special Presidential authority to use
stocks of the Department of Defense, with reimbursement from
H-375,000)
subsequent appropriations to liquidate the authorization.
990,000 f -210,000
A 150,000

Public enterprise funds:

Foreign military sales fund
Total, military assistance^

A
D

-75,000

057 Exp.
NOA
Exp.

1,130,000
1,228,579

1,470,000
1,050,000
A
225,000

917,000
-553,000
1,000,000 ) -125,000
A
150,000

Proposed for separate transmittal, other than pay increase supplemental.
To carry out authorizing legislation to be proposed,




3

(Receipts from prior sales finance additional sales of defense
articles and services on cash or credit terms, including loan
guarantees.)

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1966

1965

1967

Increase or
decrease (—)

Explanation of NO A requests

FUNDS APPROPRIATED TO THE PRESIDENT—Continued
!

ECONOMIC ASSISTANCE
General and special funds:

202,302 1
-1,022
204,000

Technical cooperation and de- NOA
velopment grants
152
Exp.

226,987

American schools and hospitals NOA
abroad
152 Exp.

16,800
8,060

American schools and hospitals Exp.
abroad (special foreign currency
program)
152

1,301

1,600
98
134,272
99.711

144,755
100,000

Supporting assistance

152 NOA

407,542

Exp.

387,251

152 NOA

99,200

Exp.

150,807

30,030

200,000

Contingency funds:
General




B

Increase reflects new emphases in education, health, and agriculture.

-4,000

100

International organizations and NOA
programs
152 Exp.

231,310

3,751

Surveys of investment opportuni- NOA
ties
152 Exp.

D

7,000
10,000

195,529

D

3,989
1,300

Increase provides a grant to the University of the Americas
and increased support to some institutions in the Near East.

-3,751

10,989
11,300

(Reflects completion of U.S. sponsored children's hospital in
Poland.)
Carryover from 1965 will finance 1967 program.

369,200 1
315,000
419,320
A
90,000

100
D

140,433
110,000

-4,322
10,000

D

747,200

63,000

447,500
195,000

133,180

Supplemental for 1966 will meet urgent needs in Vietnam, Laos,
Thailand, and the Dominican Republic. The increase for 1967
relates primarily to Vietnam.

la
tr1

Estimate provides for voluntary contributions to international
agencies, including the U.N. Development program and the
Indus Basin development project.

A

50,000
100,000
78,180
A
10.000

H

A

D

A

A

70,000

-80,000

21,000 [
35,000

-32,180

Replenishment of 1966 funds is required if needs in Vietnam and
elsewhere arise beyond currently estimated requirements.
Estimate for 1967 is minimum necessary to provide flexibility
to meet emergencies and opportunities in the national interest.

CO

Southeast Asia_ _ _.

152 NOA
Exp.

89,000
45,000

Alliance for Progress: Technical NOA
cooperation and development Exp.
grants
152

84,700
97.703
67,016

50,000

Administrative expenses:
Agency for International De- NOA
velopment
152
Exp.

53,600

54,240 1
B
980
57,500

_152 NOA

3,029

Exp.

2.307

Subtotal, grants and other NOA
programs.
Exp.

996,272

D

75,000
80,000

Social progress trust fund

43,500

State.

152 Exp.

52.445

1,093.686

87,700
80,000

-89,000
-1,500

Unforeseen Southeast Asia needs will be met from the general
worldwide contingency fund in 1967.

12,700

Increase reflects new emphases in education, health, and agriculture.
(The Inter-American Development Bank now carries out this
activity.)

50,000
D

2,167

59,800

113

3,000

Increase reflects primarily wage and price increases, reduced
carryover, and some additional Vietnam support costs.

w

2,300

3,255

3,100 1
B42
2,700

57,387

300

Program level is same as in 1966.

-61,323
994,597 1 1,348,274
M15,000
1.026,200 1
105,649
1,050,551
A
^230,000
100,000

o
o

Public enterprise funds:

Loan and guarantee programs:
Alliance for Progress: Develop- NOA
ment loans
152 Exp.

425,000
201,818

435,125
290,000

D

773,728
Development loans—revolving NOA
fund
152 Exp. 640,524

618,225
568.830

D

A
B
D

455,300
300,000

20,175
10,000

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.

665,388
585,793

47,163
16,963

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

>

o

Proposed for separate transmittal, other than pay increase supplemental.
Proposed for separate transmittal, civilian pay increase supplemental.
To carry out authorizing legislation to be proposed.




00
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

I

1967

Increase or
decrease(—)

Explanation of NOA requests

FUNDS APPROPRIATED TO THE PRESIDENT—Continued
ECONOMIC ASSISTANCE—Continued

w

Public enterprise funds—Continued
Loan and guarantee programs—Con.
Development Loan Fund (liqui- Exp.
dation account)
152

113,944

100,000

68,592

-31,408

(The fund ceased existence as a corporate entity in 1962 except
for liquidation of loan commitments.)

Foreign investment guarantee Exp.
fund
152

-7,778

-9,000

-10,000

-1,000

(Guaranties of $1.6 billion are expected to be issued. No new
obligational authority or expenditures are anticipated.)

Subtotal, loan and guaran- NOA i 1,198,728
tee programs.
Exp. | 948,507

1,053,350
949,830

1,120,688

944,385

67,338
-5,445

-765

-400

-600

-200

Office of Inspector General of For- Exp.
eign Assistance, State
152

-28

19

15

Subtotal, intragovernmental Exp.
funds.

-793

I nongovernmental funds:
Advance acquisition of property— Exp.
revolving fund
152

Total economic assistance. _ _ NOA




Exp.

o

(The fund finances the acquisition, renovation, and resale of
Government-owned excess property.)

— (Advances of $825 thousand from other appropriations will
4
finance the continued review of foreign assistance activities.)

2,195,000
2,041,400

-381

-585

-204

2,047,947 [ 2,468,962
A
415,000
1,970,000
2,000,000
A
100,000
A23O.OOO

6,015
100,000

OFFICE OF ECONOMIC
OPPORTUNITY
General and special funds:

program NOA
655 Exp.

769,050
194,076

1,400,724
1,179,724

Economic opportunity loan fund NOA
655 Exp.

23,950
17,158

Total, Office of Economic NOA
Opportunity.
Exp.

793,000
211,234

1,433,724
1,210,000

D

33,000
30,276

Economic

opportunity

l,724,000
1,573,875

323,276
394,151

Estimate will enable additional communities to plan and operate
action programs to combat poverty and will finance preemployment education, training, and work experience for over 600,000
poor youths and adults.

26,000
26,125

-7,000
-4,151

Estimate will provide 15,500 loans to poor farm families and 400
loans to rural cooperatives.

1,750,000
1,600,000

316,276
390,000

D

110,500

-3,600

88,000

4,000

125,000

8,073

-116,927

35,000
30,000

5,000

-35,000
-25,000

Public enterprise funds:

D

3

W

PEACE CORPS
General and special funds:

Salaries and expenses
Reappropriation

152 NOA
NOA
Exp.

87,093
17,000
78,573

102,000 1
12,100
84,000

Lower volunteer costs allow decrease in NOA requirements, but
estimate will permit expansion of 1,500 in volunteer and
trainee strength.

PUBLIC WORKS ACCELERATION
Public works acceleration.

_507

NOA
Exp.

4,000
321,625

(Authorized program is being completed.
proved prior to July 1, 1964.)

tr1

O
O

Projects were ap-

SOUTHEAST HURRICANE DISASTER
Southeast hurricane disaster. _506

NOA
Exp.

Appropriation in 1966 was to provide special assistance to
victims of Hurricane Betsy.

Assistance to Greece and Turkey
152

Exp.

Obligations, defense aid, liquida- Exp.
tion lend-lease program
152
A
D

1

(Account is used only to pay old obligations.)

17

(Account is used only to pay old obligations.)

Proposed for separate transmittal, other than pay increase supplemental.
To carry out authorizing legislation to be proposed.




o
4

MISCELLANEOUS

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account arid fu actional code

1966
estimate

1967
estimate

Explanation of NOA requests

decrease(—)

to

F U N D S APPROPRIATED TO T H E PRESIDENT—Continued
MISCELLANEOUS-Continued
General and special funds—Continued
Translation of publications and Exp.
scientific cooperation, special
foreign currency programs.-355

618

247

243

-4

Exp.

636

247

243

-4

Total, funds appropriated to NOA
the President.
Exp.

5,834,929

5,721,401
A
610,000
4,497,537
A 370.000

5,616,812
A
20,000

-694,589

4.637.822
A
390,000

160,285

Total, miscellaneous

4,307,263

(Continuation of this program is provided under the National
Science Foundation and the Department of Agriculture.)

o

DEPARTMENT OF AGRICULTURE

CD
O

AGRICULTURAL RESEARCH SERVICE
General and special funds:
Salaries and expenses

355 NOA

197,901
B

Permanent
Reappropriation




NOA
NOA
Exp.

1,000
202,701

M70

A

177,728
-1,478

-20,422

3,201

18,100
2,000

25,000

195,137
A 454

193,100
A-1,462

-3,953

Increases are for staffing and operating new and expanded
research laboratories and watershed research centers, plant
and animal disease and pest control and eradication activities,
construction of facilities at Clay Center, Nebr., and Miles
City, Mont., and plans for relocation of animal quarantine
station at Clifton, N.J. These increases are more than offset
by decreases which reflect termination of $5.6 million in lowpriority research, $11.7 million in nonrecurring construction
costs and completion of the 1-year screwworm survey in
Mexico plus the reduction or elimination of a number of control
programs amounting to $7.8 million, and $1.5 million in anticipated legislation to place certain control activities on a selfsupporting basis.

CO
O5

Salaries and expenses (special for- NOA
eign currency program)
355 Exp.
Miscellaneous expired accounts. __ Exp.
355

2,000
6,553

3,000
6,338

7,012

-3,000
674

480

200

Appropriation for special foreign currency program is to be replaced by a direct authorization to spend currencies.

-280

679

Intragovernmental funds:

Working capital fund, Agricultural Exp.
Research Center
355
Total, Agricultural Research NOA
Service.
Exp.

-67
230,133
209,866

3

221,001 I
M70 \
B
3,201
201,955
A454

202,728 |
-I,478

-23,422

200,312 |
A-1.462

-3.559

47,740

-7,487

A

w

COOPERATIVE STATE RESEARCH
SERVICE
General and special funds:

Payments and expenses

355

Permanent

NOA

NOA
Exp.

46,867

54,795 1
B
32
400
58,348

47.747

-10,601

Decreases of $8.5 million in payments for agricultural research
and $2 million in grants for facilities are partially offset by a
$2.9 million increase in contracts and grants for scientific
research.

85,857
84,805

89,135
89,378

90,224
90.226

1,089
348

89,135
89,878

90,224
90.226

o
o

Increase is for payments to the States under the Smith-Lever
Act to continue work in the Appalachian region.

1,089
348

50,297

50
>

EXTENSION SERVICE
Cooperative extension work, pay- NOA
ments and expenses
355 Exp.
Intragovernmental funds:

Advances and reimbursements. 355 Exp.
Total, Extension Service
A
B

NOA
Exp.

-73
85,857
84,732

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




CO

00

CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1967

1966

Increase or

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued
FARMER COOPERATIVE SERVICE
General and special funds:
355 NOA

Salaries and expenses _ _

1,141

1,141
B26

Exp.
Advances and reimbursements. 355

1,095

1,141

Exp.

24

Cooperative

8

1,170

29

13

NOA

1,141

Exp.

Total, Farmer
Service.

i

1,175

1,119

Estimate provides for research and technical assistance for agricultural cooperatives.

i

1,154

1,175

8

1,170

16

109,020

218

109,000

-572

6,397

129

6,343

-311

66,559

228

70,120

4,034

SOIL CONSERVATION SERVICE
General and special funds:
Conservation operations
_354 NOA

105,808

Exp.

104,471

401 NOA

6,321

NOA
Exp.

5,049

_ .401 NOA

71,240

Exp.

61,304

Watershed planning

_

Reappropriation__
Watershed protection _




. _

106,194
B
2,608
109,572
5,713
B
140
415
6,654
65,746
B
585
66,086

1

}
1

o
o
••3

-13

1,141
B9A ]

d

The 1967 estimate increases technical assistance on recreation
projects and continues the 1966 level of operations in Appalachia but provides a reduced rate for soil surveys.
The 1967 estimate will continue current level of watershed planning in the Appalachian region.

Estimate will start construction on about 35 watershed projects,
continue construction on 330, complete 40, provide advance
engineering and technical assistance to 358 projects, and increase river basin surveys.

Flood prevention

401

NOA

26,317

Exp.

24,972

Great Plains conservation program NOA
354
Exp.

14,864

Resource conservation and devel- NOA
opment
354
Exp.

1,813

Total, Soil Conservation Serv- NOA
ice.
Exp.

226,362

12,493

1,000

209,288

25,411 1
B
160
29,371
16,000 |
B
82
13,478
4,301 1
B46
3,880
223,780 }
B
3,621
229,041

25,654

83

26,776

-2,595

16,112

30

15,004

1,526

4,574

227

6,003

2,123

228,316

915

233,246

4,205

12,547

765

12,401

705

13,434

-567

13,370

-449

Estimate will continue operations on the 10 uncompleted projects.

Estimate provides cost-sharing assistance and technical services
to farmers and ranchers for the development and installation of
land conservation plans.
Estimate includes funds to plan additional projects and continue operations in 20 projects.

w

ECONOMIC RESEARCH SERVICE
Salaries and expenses

355 NOA
Exp.

11,222
10,138

11,536 1
B
246
11,696

Increases are for research on Appalachia, rural incomes and
economy, water management and use problems in agriculture,
and basic statistics on farm income parity.

STATISTICAL REPORTING SERVICE
Salaries and expenses

355 NOA

11,866
11,584

13,751 1
B
250
13,819

Intragovernmental funds:

Advances and reimbursements_355 Exp.

2

Total, Statistical Reporting NOA
Service.
Exp.

11,866

B

11,586

-16

16
13,751 J
B
250
13,835

13,434

a
w
>

Nonrecurring cost of a large computer more than offsets increases for an improved farm employment data collection
system and for extension of the basic program to improve crop
and livestock estimates in the 48 coterminous States.

3

O

-567

13,370

3
O

-465

Proposed for separate transmittal, civilian pay increase supplemental.




CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account an d functional code

1965

1966

Increase or
decrease ( - )

1967

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued
CONSUMER AND MARKETING
SERVICE
General and special funds:

Consumer protective, marketing NOA
and regulatory programs 355

40,487

Exp.

39,991

78,149
20,360
1,905
77,893

Payments to States and posses- NOA
sions
355 Exp.

1,500

1,750

1,750

1,750

1,750

103,000

21,000
37,000

138,000
45,000

-19,000

168,000

-18,000

Special milk program
Permanent

659 NOA
NOA
Exp.

A

B

1,500

51,500
51,500
86,609

86,265
—71,298

-85,447

85,862
A-66,172

-58,203

A

The decrease reflects proposed legislation to finance meat and
poultry inspection and certain marketing services on a fee basis.
The 1966 supplemental will establish the revolving fund required by the proposed legislation.
Estimate provides for matching payments to States for programs
to improve marketing.

-82,000

Program will be directed to needy children plus children in needy
schools where there is no lunch program.

-52,000

School lunch program
Permanent

659 NOA
NOA
Exp.

146,400
45,000

89,000
157,000
45,000

178,580

186,000

Food stamp program
Permanent
Reappropriation

659 NOA
NOA
NOA
Exp.

25,000
30,650

79,992

34,395

20,000
88,700

132,600

43,900

Perishable Agricultural Commodi- NOA
ties Act fund (permanent, in- Exp.
definite, special fund)
355

911
847

927
938

927
948

10




50,008
150,000

An increase of $4.5 million in special assistance to needy schools is
more than offset by decreases of $14.3 million for commodity
procurement and $9.2 million in cash payments to States.
The expanded program will be financed entirely by transfer from
the permanent appropriation, "Removal of Surplus Agricultural
Commodities."
License fees are used to cover the cost of administering the license
system.

d
o

CO

o
>

Removal of surplus agricultural NOA
commodities (permanent, in- Exp.
definite)
351

231,167
272,932

332,321
321,079

215,883
185,883

-116,438
-135,196

30% of certain custom receipts is available to finance this and
related Federal programs. Decrease results from transfer of
funds to finance food stamp program.

Intragovernmental funds:

Advances and reimbursements.355 Exp.

103

Total, Consumer and Market- NOA
ing Service.

624,115

Exp.

614,957

818,139 1
658,825 | -252,877
20,360 \ A -71,298
B
1,905
765,360
612,043 1 -219,489
A-66,172

A

FOREIGN AGRICULTURAL SERVICE
General and special funds:

Salaries and expenses

355 NOA

20,779

NOA
Exp.

21,379 1

627 The increase is to strengthen attache service, market development
supervision, and Public Law 480 compliance activities.

3,117
17,127

20,574
B
178
3,117
17,510

3,117
21,130

3,620

Salaries and expenses (special Exp.
foreign currency program)..355

1,355

1,000

1,000

Total, Foreign Agricultural NOA
Service.

23,896

23,691
B
178
18,510

Permanent

Exp.

18,482

J

(Program isfinancedfrom balances of prior year appropriations.)

24,496

627

22,130

3,620

1,398

201

1,391

o
o
>

189

>
a

COMMODITY EXCHANGE AUTHORITY
Salaries and expenses

355 NOA
Exp.

A
B

1,169
1,144

1,169 1
B
28
1,202

Increase provides for expanding investigations and supervision
of futures trading.

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




CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

1967
estimate

Increase or
decrease(—)

Explanation of NOA requests

00

DEPARTMENT OF AGRICULTURE—Continued
AGRICULTURAL STABILIZATION AND
CONSERVATION SERVICE
General and special funds—Continued
Expenses, Agricultural Stabiliza- NOA
tion and Conservation Service Exp.
351

108,552
107.886

126,278
125,092

135,891
134,522

Increase is primarily for financing administration of the cropland
adjustment program.

351 NOA
Exp.

96,000
92,108

95,000
94,089

80,000

Decrease results from anticipated reduced plantings and from
lower payments for prior year crops.

Agricultural conservation program:
Contract authorization
354 NOA
Liquidation of contract authorization.
Exp.

220,000
(225,000)
216,139

220,000
(220,000)
218,982

Appalachian region conservation NOA
program
354 Exp.

7,000
215

6,785

10,000

10,000

10,000

(15,000)
9,667

(7,500)
9,738

(10,000)
9,917

Sugar Act program

Cropland conversion program:
Contract authorization (perma- NOA
nent)
351
Liquidation of contract authorization.
Exp.




100,000

(220,000)
210,108

Reduction proposed will provide adequate funds to cost-share
high priority conservation practices.

194,000
193,698

146,000
148,497

1

Estimate is for cost-sharing assistance in the conservation and
development of the region's soil, water, woodland, wildlife, and
recreation resources.
(Increases in appropriation to liquidate contract authorization in
1967 is due to financing the full year's program in 1967.)

200,000
200,000

Cropland adjustment program.351 NOA
Exp.
Conservation reserve program. 351 NOA
Exp.

85,132

td

d

The funds will be used to assist farmers to divert land from the
production of unneeded crops and to reimburse CCC for funds
used in 1966.

143,000
140,000

Requirements for annual rental payments will decrease in 1967
with contracts expiring on about 556,000 acres in 1966.

CO

Emergency conservation meas- NOA
ures
354 Exp.

14,000
10,008

24,000
18,400

5,000
18,200

-19,000
-200

Payments are for cost-sharing assistance to farmers and ranchers
to rehabilitate lands damaged by natural disasters.

Indemnity payments to dairy NOA
farmers
355 Exp.

1,000
261

300
320

100

-300
-220

Special appropriation in 1965 was to pay farmers for milk excluded
from markets due to pesticide residues. Authority for making
these payments has expired.

Total Agricultural Stabiliza- NOA
tion and Conservation Exp.
Service.

650,552
629.982

621,578
621,903

678,266
802,354

56,688
180,451

COMMODITY CREDIT CORPORATION
Price Support and Related Programs
Public enterprise funds:
Price support and related programs:
351
Contract authorization (per- NOA
manent, indefinite).
Appropriation to liquidate contract authorization.
Reimbursement for net realized NOA
losses.
Exp.
Limitation on administrative
expenses.

744,944

3

(1,065,682) (1,065,682)

(841,856)
1,832,144
2,645,883
(37,351)

-744,944

2,800,000
2,250,038
(36,650)

2,490,173
2,164,329
(34,300)

-309,827 Request in 1967 is to restore balance of 1964 and total 1965
-85,709
losses and provide sufficient borrowing authority in 1967.
(-2,350)

Special milk program:
659
Reimbursement for costs for Exp.
special milk program.

-129

-30

30

Total, price support and re- NOA
lated programs.
Exp.

1,832,144
2,645,754

3,544,944
2,250,008

a
>

2,490,173 -1,054,771
2,164.329
-85,679




(Program is now beingfinancedthrough an appropriation under
the Consumer and Marketing Service.)

co
o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

Explanation of NOA requests

Increase or
decrease (—)

1967

DEPARTMENT OF AGRICULTURE—Continued
COMMODITY CREDIT CORPORATION—
Continued
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.

Military housing, barter and ex- Exp.
change
351

- 2 ,438

-2.000

-2,000

National Wool Act (permanent, NOA
indefinite)
351 Exp.

87 ,770
22 ,668

22,577
37.549

37,373
47,331

14,796
9,782

68

-198

20

218

Research to increase domestic con- NOA
sumption of farm commodities Exp.
(permanent)
355

12,175
4,661

9,357

Research to reduce surplus com- Exp.
modities
355

1,822

4,750

7,500

2,750

(Corporation funds are transferred to the Agricultural Research
Service for specified research projects.)

Loans for conservation purposes Exp.
354

- 2 ,960

2,600

-15,000

-17,600

(Corporation funds may be loaned to the Secretary of Agriculture to carry out the agricultural conservation program.
Borrowings in 1967 are expected to be lower due to smaller
program.)

Miscellaneous game bird pro- Exp.
tection
351




(Receipts are from Department of Defense for housing constructed
in France, using foreign currencies acquired by sale of agricultural commodities.)

-9,357

Increase due to higher payment rates.

GO

o
(A portion of this item is included in Department of the Interior
and the remainder is an appropriation to reimburse the Corporation included in "Reimbursement for net realized losses.")
(This item to be included in Agricultural Research Service.)

Cropland

adjustment

program Exp.

30.000

Transfer of long-staple cotton Exp.
from national stockpile for sale
by Commodity Credit Corporation..__
351

11.792

-77

Total, special activities fi- NOA
nanced by Commodity Exp.
Credit Corporation.

99,945
35.613

22,577
81.981

1,932,089
2.681,368

3,567,521
2.331.989

Total. Commodity
Corporation.

Credit NOA
Exp.

37,373
7.851

-60,000

(Corporation funds will be used in 1966 for carrying out the cropland adjustment program. Reimbursement to the Corporation
is requested for the cropland adjustment program under the
Agricultural Stabilization and Conservation Service.)

77

-30.000

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

14,796
-74.130

2,527,546 -1,039,975
-159,809
2.172.180
Expenditures for the 5 following items are expenditures made by
the Government (through Commodity Credit Corporation) in
each year for the respective programs.

FOREIGN ASSISTANCE AND SPECIAL
EXPORT PROGRAMS

SI

General and special funds:
Public Law 480:
Sale of commodities for foreign NOA
currencies
154 Exp.

1,862,000
1.293.368

1,144,000
1.114.037

Grants of commodities for fam- NOA
ine relief
154 Exp.

220,453
147.212

298,500
285.949

Losses on long-term sales con- NOA
tracts154
Exp.

235,000
200,198

E

o
o

1,040,000
994,000
E

-104,000
-120,037

200,000
283,000

-98,500
-2,949

215,500

377,000

161,500

301.166

262,000

-39,166

Decrease is primarily due to lower wheat and cotton prices and
lower ocean transportation costs. The volume of commodities
shipped will be larger in 1967 than in 1966.
Decrease is primarily due to availability of prior year funds.

w
>
a

Increase is primarily to reimburse CCC for excess prior years'
costs.
(Decrease is due primarily to lower wheat and cotton prices and
reduced cotton shipments and higher repayments from foreign
governments.)

Includes $70 million to carry out authorizing legislation to be proposed.




o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966

1967

Explanation of NOA requests

Increase or
decrease ( - )

DEPARTMENT OF AGRICULTURE—Continued
FOREIGN ASSISTANCE AND SPECIAL
EXPORT PROGRAMS—Continued

3

General and special funds—Continued
International Wheat Agreement NOA
351 Exp.

81,838

Bartered materials for supple- NOA
mental stockpile
351 Exp.

92,860
40,647

Reimbursements to CCC in excess Exp.
of or under (—) expenditures
by CCC for programs.

775,881

34,845

27,544
74,993

33,800
-124,401

60,000
2,705

32,456
-72,288

Estimate for 1967 reimburses CCC for prior-year costs in excess
of appropriations and covers export payments through July 31,
1966.

13,000
41,087

13,000
7,287

1965 NOA was sufficient to cover all 1966 costs and a portion of
1967 costs. Expenditures are for value of strategic materials
acquired by barter transferred to supplemental stockpile.

107,208

231,609

(Expenditures shown above have been made by the Commodity
Credit Corporation in advance of appropriations in some years.
This adjustment line brings the total of this group to the
amounts paid by the appropriations to the Corporation during
each year.)

NOA
Exp.

2,492,151
2,492,151

1,685,544
1,685,544

1,690,000
1,690,000

-775,881

124,401

-107,208

-231,609

Total, foreign assistance and NOA
Exp.
special export programs.

4,492,151
1,716,270

1,685,544
1,809,945

1,690,000
1,582,792

4,456
-227,153

Total, Commodity Credit NOA
Corporation and foreign Exp.
assistance and special export programs.

4,424,240
4,397,638

5 ,253,065
4 ,141,934

4 ,217,546 -1,035,519
3 ,754,972
-386,962

g
i

o
to
GO
>

4,456
4,456

Increase or decrease ( —) in Ex P .
amount owed by general fund to
Commodity Credit Corporation.

d

Subtotal




In 1966, estimate indicates amount owed CCC by foreign assistance programs will go up from $33,248 thousand to $157,649
thousand. In 1967 it will be cut to $50,441 thousand.

CO

a

FEDERAL CROP INSURANCE
CORPORATION
Administrative and operating ex- NOA
penses
351
Exp.

7,990 |
B
202
8,145

354

8,509

364

1,688

-1,791

(4,000)

7,518

8,546

3,479

7,478

(4,000)

Increase is to extend crop insurance protection to at least 40 new
counties.

Public enterprise funds:

Federal Crop Insurance Corpora- Exp.
tion fund
351
Limitation on administrative
expenses.
Total, Federal Crop Insur- NOA
ance Corporation.
Exp.

903
(3,638)

7,990 j
B
202
11,624

7,478
8,421

8,546

354

10,197

(Decrease is due primarily to increase in receipt of insurance
premiums.)

-1,427

RURAL ELECTRIFICATION
ADMINISTRATION
General and special funds:

Loans (authorization to spend NOA
debt receipts)
353
Exp.

435,000

462,000
370,000

380,582

A-189,000

353 NOA

11,832

Total, Rural Electrification NOA
Administration.
Exp.

A
B

11,934 1
B
268
12,105

11,934

Exp.

Salaries and expenses

305,000 | -462,000 The estimate of $305 million plus balances of previous years will
-305,000
provide for estimated loan commitments of $270 million for
380,000 1
3,000
electrification and $85 million for telephone. Proposed legisA
-196,000
lation permits loan receipts to be used to reduce expenditures in
1966, and both NOA and expenditures in 1967.

A

446,934
392,414
A

473,934
B
268
382,105
—189,000

12,202
12,174

69

317,202 1 -462,000
-305,000
392,174 |
3,069
A
—196,000

A

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




Estimate covers administrative expense of the rural electrification and telephone programs.

O
O

a

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967
estimate

Increase or
decrease(—)

Explanation of NOA requests

to

S

DEPARTMENT OF AGRICULTURE—Continued
FARMERS HOME ADMINISTRATION
General and special funds—Conti nued
Rural water and waste disposal NOA
grants
352 Exp.
Rural renewal

352 NOA
Exp.

21.000

1,200
2,091

1,200
1,200

3,000
3,000

3
6,000
1,000

3,000
3,000

1,200
946

Rural housing for domestic farm NOA
W EXD.
labor
Rural housing grants

26,000

20,000
20,000

352 NOA

The increase is for development grants to rural communities
under 5,500 population.
Provides for program operations in 5 pilot project areas.

-891
Grant assistance will be continued to nonprofit public or private
organizations for low-rent housing and related facilities.

4,000
4,000

4,000
4,000

Increase is for repair and improvement grants to rural residents
having low incomes.

51,600

1,939

51,000

1,989

Increase is mainly to provide for administrative costs of increased
rural water and waste disposal system and real estate loan
programs.

51,779

78,573

Receipts and balances will finance an estimated loan program of
$397.1 million in 1967.

Exp.

2,318

352 NOA

41,558

Exp.

41,333

352 NOA
Exp.

7,100
67,971

-26,794

Rural housing direct loan account NOA
352
Authorization to spend debt NOA
receipts.
Exp.

5,000

2,500

150,000
133,346

16.575

-27,953

-44,528

100,000
31,350

-8,625

-100,000
-39,975

Receipts and balances will finance estimated $375 million program
in 1967.

3,024

3,118

94

(Receipts and balances will finance a loan program of $64 million
and administrative expenses of $4 million in 1967.)

Salaries and expenses
Public enterprise funds:
Direct loan account

Rural housing insurance fund .352 NOA
Exp.
Emergency credit revolving fund Exp.
352




30,257

48,461 i
l,200
49,011

B

-2,500

No appropriation is necessary in 1967 to fund this newly established direct loan account. Program level in 1967 is estimated
at $15 million.

d

Agricultural credit insurance fund Exp.
352

9,000

2,141

-102.555

Total, Farmers Home Admin- NOA
istration
352
Exp.

204,858
285,171

175,161
B
1,200
100,398

-549,000

(Legislation will be proposed to sell certificates of participation
in FHA direct loans.)

85,800
A

(Sale of loans will increase in 1967. Contingent liabilities for
insured loans as of June 30, 1967, is estimated to be $1,385
million.)

-549,000

Sale of certificates of participation Exp.
352

-104,696

-90,561

-4,036
-549,000

-653,434

3,468

2,831
2,668

RURAL COMMUNITY DEVELOPMENT
SERVICE
General and special funds:
Salaries and expenses

355 NOA
Exp.

I ntragovern mental funds:
Advances and reimbursements.355 Exp.
Total, Rural Community De- NOA
velopment Service.
Exp.

182

625
12

B

125

660

3,328

148

143

15

625
12
803

3,468

2,831

3,343

2,540

11,602

989

11,567

983

Increase provides for additional personnel and other administrative services to strengthen the coordination and liaison
efforts related to developing the economy of rural areas.

182
274

B

o
o
w
>

-128

OFFICE OF THE INSPECTOR GENERAL
General and special funds:
Salaries and expenses

10,116

Exp.
A
B

355 NOA

9,703

10,468
B
145
10,584

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




Estimate provides for expanded departmentwide audit and
investigation services.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars) — C o n t i n u e d
1965
enacted

Account and functional code

1966

1967

Increase or
decrease ( - )

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued
OFFICE OF THE GENERAL COUNSEL
General and special funds—Continued
Salaries and expenses

355 NOA
Exp.

4.039
3.965

4.184 1
B
102
4.273

4,325

39

4.319

46

1,826

-89

1,838

Estimate provides for legal services to the Department's programs.

-81

OFFICE OF INFORMATION

Salaries and expenses

_ _ 355 NOA
Exp.

1,689
1.698

1,889 |
B
26
1.919

w
d
o

An increase for additional personnel is more than offset by a nonrecurring 1966 printing expense.

NATIONAL AGRICULTURAL LIBRARY

Library facilities

355 NOA

1,599

1,699 |
B
36

2,501

766

Exp.

Salaries and expenses

1,508

1.777

2,428

651

355 NOA
Exp.

119

7,000
2.004

3,400

-7,000
1,396

2,501

-6,234

5,828

2.047

2,687

145

2.681

140

Increase is due primarily to the expansion of services to scientists
and automation of library systems.

Total. National Agricultural NOA
Library.
Exp.

1,599
1.627

8,699 1
B
36
3.781

Decrease reflects nonrecurring construction funds. The new
library is scheduled for completion in 1968.
CO

OFFICE OF MANAGEMENT SERVICES

Salaries and expenses_ _




_355 NOA

2,483

Exp.

2,401

2,483 1
B
59
2,541

Provides central financing of management services for a number
of smaller agencies. Increase is for additional personnel.

GENERAL ADMINISTRATION
Salaries and expenses

355

NOA
Exp.

3,848 |
B
80
3,838

3,553
3,487

3,959

31

3,959

121

54

The estimate will maintain the current level in the Office of
the Secretary and staff offices.

-43

I nongovernmental funds:

Working capital fund

355

Exp.

Total, general administration. NOA
Exp.

97

41
3,553

3,848 )
B

3,959

31

3,528

3,935

4,013

78

645
645

645
645

80 1

NATIONAL ADVISORY COMMISSION
ON FOOD AND FIBER
General and special funds:

Expenses

355

NOA
Exp.

The estimate will finance the central expenses of the recently
established National Advisory Commission on Food and Fiber

w
o

FOREST SERVICE
Forest protection and utilization NOA
402
Exp.

Cooperative range improvements NOA
(special fund)
402 Exp.
Forest roads and trails
402
Contract authorization:
Current
NOA
Permanent
NOA
Liquidation of contract authorization.
Exp.
A
6
D

226,572
216,349
700
700

216,292 1
10,000
B
2,790
217,725 1
A
10,000

225,188

-3,894

222,640

-5,085

A

K}

700
700

700
700

These funds are advanced to and merged with the appropriation
"Forest protection and utilization."

I
3

D

123,000
(75,972)
80,458

85,000
(101.172) 1
»(964)
111,085

85,000

(102,530)
102,530

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,




Supplemental is for fighting forest fires. Decrease in 1967 results
from nonrecurring construction partially offset by increases for
recreation facilities, land classifications, adjustments and surveys, and water resource development.

(394)

Program will construct or reconstruct about 1,605 miles of multipurpose roads.
(Increase in 1967 results from repair of Pacific Northwest flood
damage.)

-8,555
to

o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

Increase or
decrease(—)

1967

00

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued
FOREST SERVICE-Continued
General and special funds—Continued
Access roads
402 Exp.
Acquisition of lands for national
forests:
Special acts (special fund) _ _ 402 NOA
Exp.
Uinta National Forest

91
8

70
48

80
75

Exp.
Superior National Forest _ _ _ 402 Exp.
Cache National Forest
402 Exp.
Assistance to States for tree plant- NOA
ing
402 Exp.
Timber development organization NOA
loans and technical assistance Exp.
402

-981

80
80
300
275

402 NOA
Exp.

Wasatch National Forest._ .402 NOA




438

5

(Prior balances will acquire interest in roads or rights-of-way;
future activity will be financed in forest roads and trails.)

Certain forest receipts otherwise payable to counties in Utah,
Nevada, and California are used to acquire lands within national forests.

300 Provides for the purchase of land within the Uinta National
275
Forest as authorized by Public Law 89-226.

150
48

347

-347

371

630

-630

41

-41

1,000
1,060

1,000
1,030

1,000
1,000

650

500
800

1,000

(Approximately 10,000 acres of land have been acquired and
completes the 1965 appropriation authorization.)

Aid is given, mainly through grants for reforestation work.

-30
500 The estimate provides for loans and technical assistance to individuals in the Appalachian region.
150

o

Expenses, brush disposal (perma- NOA
nent, indefinite, special fund) Exp.

9,551
8.529

8,500
8,400

8,600
8,500

100
100

Certain receipts from purchases of timber are applied to disposal
of brush on cutover areas.

Roads and trails for States, na- NOA
tional forest funds (permanent, Exp.
indefinite, special fund)
402

13,141
13,141

14,204
14,204

14,700
14,700

496
496

Permanent law makes available 10 percent of national forest
receipts for construction and maintenance of roads and trails in
national forests within the States from which the receipts were
derived.

33,574
33,578

36,351
36,378

37,650
37,659

1,299
1.281

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 for schools and roads
and trails.

39

179
-2,010

-1,867

143

362,127 |
10,000
B
2,790
390,415 |
A
10,000

373,718

-1,199

387,017

-13.398

402

to

©
©
o

I

f

Other Forest Service permanent NOA
appropriations
402 Exp.

M

Intragovernmental funds:
Advances and reimbursements— Exp.
402
Working capital fund,
Service..

Forest Exp.
402

-1,709

Total, Forest Service

_ NOA

408,760

Exp.

353,050

Total, Department of Agri- NOA
culture.

7,432,540

Exp.

7,298,052

A
B

A

-179

o
o

8,384,589 1 6,992,974 1-1,814,628
A
30,830 A -377,776
B
14,407
6,610,162 1-1,090,334
7,052,609
A
-178,546 A -812,634
B
B
786
14,585

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




to
o

CD

to

o
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

1967

I9t>6

Explanation of NOA requests

decrease ( - )

DEPARTMENT OF COMMERCE
W

GENERAL ADMINISTRATION

O

General and special funds:
Salaries and expenses

Century

4,252

Exp.
Participation in
Exposition. _...

506 NOA

4,260

21 Exp.
506

16

Participation in New York World's Exp.
Fair
..506

2,390

Public enterprise funds:
Aviation war risk insurance re- Exp.
volving fund
50!

4,250
B
89
4,120

506 Exp.

65

Advances and reimbursements.506 Exp.

4,252

Exp.

6,648

4,790

670




Increase provides for new analytic staff and for strengthening
other staff.
(Activity completed in 1962. Expenditures are for settlement of
outstanding claims.)

-956

956

(Fair closed in 1965. Expenditures are for settlement of outstanding claims.)

10

(Contingent liability is estimated at $8,789 million.)

-27

-46

-19

4,250
B
89
5,092

5,050

711

4,754

-338

l

o

-36

-76

Total, general administration. NOA

711

36

-7

Intragovernmental funds:
Working capital fund

5,050

o

g

ECONOMIC DEVELOPMENT
Appalachian Assistance

General and special funds:
Grants for local development dis- NOA
tricts and for research and dem- Exp.
onstration
507

1,400

3,000
3,000

3,000
1,600

Estimate will provide (1) administrative expense grants for local
development districts of 12 Appalachian States and (2) grants
for research and demonstration projects. Program level in 1967
will increase by 120% over 1966, for which the appropriation
was made in 1965.

3,600

35,000
16,700

35,000
13,100

Increased Federal contributions will be available for otherwise
authorized grant-in-aid programs. Estimate, with anticipated
unobligated balances, will provide $50 million in 1967, an increase of $20 million over 1966 level.

5,000

38,000
19,700

38,000
14,700

Development facilities grants_507 NOA
Exp.

203,200
7,000

175,140
67,500

-28,060
60,500

Direct and supplementary grants, up to 80% of project cost, will
be available to State, local, or nonprofit organizations. These
grants will improve opportunities for the successful establishment or expansion of industrial or commercial facilities.

Technical and community assist- NOA
ance
507 Exp.

18,121
10,000

27,245
20,000

9,124
10,000

Estimate provides aid to communities, and districts in their
planning for economic development by planning grants, technical assistance, and special direct assistance.

40,000
4,000

40,000
4,000

New program authorized to be initiated in August 1966. Estimate provides for grants and loans for about 500 projects,
including projects in designated economic development centers
which are not depressed but are within a development district.

Supplemental grants-in-aid

Total, Appalachian
ance.

2,500

507 NOA
Exp.

45,000

assist- NOA
Exp.

47,500

Economic Development Administration

Economic development
assistance
B

centers NOA
507 Exp.

o
o

Proposed for separate transmittal, civilian pay increase supplemental.




to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

Increase or
decrease(—)

1967

Explanation of NOA requests

to
to

DEPARTMENT OF COMMERCE—Continued
ECONOMIC DEVELOPMENT—Continued
Economic Development Administration—Continued
Public enterprise funds:
Economic development revolving NOA
fund
507 Exp.

w
d

59,500
55,160

105,000
55,000

85,000
60,000

-20,000
5,000

59,500
55,160

326,321
72,000

327,385
151,500

13,700
12,435

5,000

660

-4,340

507 Exp.

8,407

6.000

6,000

Total, Area Redevelopment NOA
Administration.
Exp.

13,700
20,842

11,000

6,660

-4,340

6,100
2,000

7,550
5,491

1,450
3,491

Total, Economic Develop- NOA
ment Administration.
Exp.

s

I
2
GO

1,064
79,500

507 NOA
Exp.

The estimate provides low-interest, long-maturity loans for the
construction of commercial, industrial, and development facilities. Program level is approximately the same in 1967 as in
1966, but less NOA will be required because loan receipts will
be used as authorized by law.

o

Area Redevelopment Administration
General and special funds:
Operations
Grants for public facilities

Program replaced by the Economic Development Administration.
(Expenditures are for projects approved in 1963.)

Regional Planning Assistance
Regional economic planning. _ 507 NOA
Exp.




The estimate provides technical and planning assistance for
multi-State regions for economic development.

i

Office of Business Economics
506 NOA

2,382

Exp.

2,275

I ntragovernmental funds:
Advances and reimbursements .506 Exp.

415

2,500 |
B
50
2,447

2,803

356

j

2,965

415

2,803

356

16.165

447

15,997

197

1,800

-3,310

1.748

Increase is primarily to provide new source data and analyses for
balance of payments; to approximately double the number of
industries in the input-output analyses; and to initiate a project for the measurement of national wealth.

-3,652

37

Salaries and expenses

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

2,382
2,312

2,500
B
50
2,447

2,965

Bureau of the Census
General and special funds:
Salaries and expenses
506 NOA
Exp.
1964 census of agriculture

506 NOA
Exp.

15,210
14,971
16,150
15,615

15,398 |
B
320
15,800
5.000 I
B
110
5,400

Increase provides for development of the use of administrative
records to obtain local area population and income data and
for collecting current retail merchandise data.
The estimate provides for completion of tabulating and publishing of the general census of U.S. farms.

2,200
1,120

2.950
3.000

1,150
1,000

3,230
3,148

2,080
2,148

Estimate provides for development of plans and for a precanvass
in preparation for a census to collect economic data covering
calendar year 1967.

1967 census of governments._.506 NOA
Exp.

200
150

1,390
1,307

1,190
1,157

Estimate provides for collection, counting and identification of
data obtained from local government units.

392

-3,750
-408

O
O

750 The estimate provides for preparation of geographic material,
feasibility tests and planning for the 19th decennial census.
1,880

506 NOA
Exp.

>

Estimate anticipates completion of surveys under Voting Rights
Act of 1965.

Preparation for 19th decennial NOA
census
506 Exp.
1967 economic census

1,113
972

3,750
Registration and voting statis- NOA
tics
506 Exp.
800
B
Proposed for separate transmittal, civilian pay increase supplemental.




CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967
estimate

Increase or
decrease(—)

fcO

Explanation of NOA requests

DEPARTMENT OF COMMERCE—Continued
ECONOMIC DEVELOPMENT—Continued
Bureau of the Census—Continued
General and special funds—Continued
Modernization
of computing NOA
equipment
506 Exp.

293

17

2,000
1,500

2,000
1,483

1963 censuses of business, trans- NOA
portation, manufactures, and Exp.
mineral industries
506

7,000
6,223

2.713

300

-2,413

1962 census of governments _. _ 506 Exp.

68

Estimate provides for additional computer memory capability
to handle higher workload of future censuses.

18th decennial census

506 Exp.

39,473

-3

3

(Activity completed in prior years.)

-350

Total, Bureau of the Census.. NOA

(Activity completed in prior years.)

4

Intragovernmental funds:
Advances and reimbursements_506 Exp.

(Activity substantially completed in prior years.)

Exp.

37,796

27,698 |
B

27,535

-593

27,392

389

5,520

195

5,213

101

430

27,003

Business and Defense Services
Administration
General and special funds:
Salaries and expenses




506 NOA
Exp.

4,959
4,824

5,200 |
B
125
5,112

Industrial and commerical data are analyzed and appraised for
use by business and Government.

©
3

Office of Trade Adjustment

Trade adjustment assistance. _506

Exp.

6

International Activities

Salaries and expenses

506 NOA
Exp.

9,718
9.618

Salaries and expenses (special for- NOA
eign currency program)
506 Exp.

200
170

508 NOA

4,735

Exp.

Export control

10,750 j
B
160
10,255

4,639

4,675
B100 1
4,697

12,625

1,715

11,968

1,713

Increased emphasis will be devoted to the promotion of foreign
commerce through trade missions and facilitation of American
exporters in showing their products overseas at commercial
exhibitions.

30

Program utilizes excess foreign currencies in developing countries
to display American goods at commercial trade fairs.

200
200

175 Regulating exports of strategic commodities and policing export
4,950
114

shipments (by the Bureau of Customs) will continue at about
the same level.

-125
-125

Study on U.S. participation in the HemisFair 1968 Exposition
to be held in San Antonio, Tex., will be completed.

4,811
125
125

HemisFair 1968 Exposition__.506 NOA

Exp.
Total, international activities NOA

14,453

Exp.

14,257

506 NOA

4,132

Exp.

506 NOA

15,750 |
B
260
15,247

17,775
16,979

o
o

1,765
1,732

Office of Field Services

Salaries and expenses

4,525

235

4.110

4,200 |
B
90
4,181

4,309

128

Increase is for additional field staff to encourage and assist American businesses in initiating or expanding the export of their
products.

1,100
493

1,300
1,200

2,000
1,800

700
600

Increase is to strengthen conciliation services authorized by the
Civil Rights Act of 1964.

Community Relations Service

Salaries and expenses

Exp.
B

Proposed for separate transmittal, civilian pay increase supplemental.




to
©1

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967
estimate

Increase or
decrease ( —)

Explanation of NOA requests

DEPARTMENT OF COMMERCE—Continued
ECONOMIC DEVELOPMENT—Continued
U.S. Travel Service
General and special funds—Continued
Salaries and expenses
506 NOA

3,000
2,432

3,000
2,900

4,700
4,200

1,700
1,300

190,199

392,069
B
955
148,090

437,955

44,931

246,047

Increase is to intensify and further develop efforts to encourage
foreign residents to visit the U.S.A.

97,957

Exp.
Total, economic development. NOA
142,233

o

Exp.
SCIENCE AND TECHNOLOGY
Environmental Science Services
Administration

Salaries and expenses




506 NOA

Exp.

Note.—Programs of the former Weather Bureau, Coast and Geodetic Survey, and the National Bureau of Standards' Central
Radio Propagation Laboratory have been consolidated into
the new Environmental Science Services Administration. For
comparative purposes, the italicized information brings together
the new obligational authority and expenditures for all years
under both the former and new organizations; the customary
explanations of increases and decreases are also provided.
Immediately following this comparison are the usual data for
the new accounts being proposed and the old accounts being
consolidated.
91,

848

90,172

95,823

101,635

3,952

* 1,603
CJ47
95,8/2
A
J04

97,807

1,897

Increase provides for maintenance and operation of new facilities,
equipment and survey vessels, and for improvement of hazards
warnings.

s
tr1

CO

506 NO A

17,917

19,148 |
*203

22,450

3,096

Exp.

Research and development

17,528

17,938

19,305

1,367

500
430

500
439

Research and development (special NOA
foreign currency program)
506 Exp.

500
33

Facilities, equipment, and construe- NOA
tion
506
Exp.

10,468
10,266

16,541

17,505

Satellite operations

10,000

25,000 1

33,585

8,537

Exp.

21,858

17,043

24,791

7,748

Exp.

6

Total, Environmental Science NOA
Services Administration.

130,733

165,195

18,459

159,838 |
A6

1U967

Support of research on weather modification, sea-air interaction,
and environmental hazards is increased.

506 NOA

Intragovernmental funds:
Advances and reimbursements..506

Exp.

A
B
c

4,149 }

144,620 1
B

139,863

1,854

147,773

}

7,025

-9
2,874

964

Excess foreign currencies will be used to study electromagnetic
wave propagation, to improve environmental observations, and
to improve environmental forecasting.
Estimate continues modernization program, provides for replacement of an obsolete circulatory survey vessel, and provides for
additional weather surveillance radars.
Estimate provides for continuation of an operational satellite
system to observe meteorological conditions.

o
o
w

I
w

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




to

ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965

Account and functional code

Increase or

1967

1966

Explanation of NOA requests

to

DEPARTMENT OF COMMERCE—Continued
SCIENCE AND TECHNOLOGY—Continued

Note.—As indicated above, the former Weather Bureau, Coast
and Geodetic Survey, and the National Bureau of Standards'
Central Radio Propagation Laboratory have been consolidated
into the new Environmental Science Services Administration.
The customary explanations of increases and decreases have
been moved to the display immediately above to facilitate
meaningful comparisons.

Environmental Science Services
Administration

w

d

General and special funds:

Salaries and expenses
Research and development

506 NOA
Exp.

101,635
97,722

101,635
97,722

506 NOA
Exp.

22,450

22,450

19,300

19,300

500
430

-9

Research and development (spe- NOA
cial foreign currency program) _ Exp.
506

500
33

500
439

Facilities, equipment, and con- NOA
struction
506 Exp.
Satellite operations

f

7,025
10,000

Exp.

21,858

Advances and reimbursements.506 Exp.

10,500

17,505

33,585

8,537

24,791

7,748

165,195

139,647

159,748

142,266

6

Total, Environmental Science NOA
Services Administration.
Exp.

25,000
B
48
17,043

7,025

17,505

506 NOA

I ntragovern mental funds:




21,897

25,500
B
48
17,482

*
1

CO

Coast and Geodetic Survey
General and special funds:

Salaries and expenses

506 NOA

Exp.

27,227

27.781

29,173
M10
B
322
C
152
29.213
A
104

-29,757

22
6

A

-29,289

Construction of surveying ships NOA
506 Exp.

9,000
5.930

1,687
10,421

-1,687
-10,421

Construction and equipment, _ 506 NOA
Exp.

575
46

770
1.057

-770
-1.057

Total, Coast and Geodetic NOA
Survey.

36,802

-32,214

Exp.

33,757

31,630
M10
B322
C
152
40.691
A
104

22 |
6

A

-40,767
o
a
to
>

Weather Bureau

NOA

66,942

Exp.

64.712

506 NOA

10,400

Exp.
Establishment of meteorological NOA
facilities
506 Exp.

Salaries and expenses

Research and development

Total, Weather Bureau

506

68,994
B1,313
68,580

63

-68,517

}"--;

-11,624

10,011

11,524
B100
10,608

725
3.966

1,500
4,369

NOA

78,067

Exp.

78,689

-70,307

82,018 1
1,413
83,557

O

-10,603
-1,500
-4,369
-83,431

B

68

-83,489
bO

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.




to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966

1967

Increase or
decrease ( - )

O

Explanation of NOA requests

DEPARTMENT OF COMMERCE—Continued

3

SCIENCE AND TECHNOLOGY—Con.

d

Patent Office

s

General and special funds—Continued

31,501
Salaries and expenses

506 NO A
30,612
Ex P .

33,400
A
395
B
605
33,185
A
350

35,935

1,535

35,055 1
A 45

1,565

Increase provides for reduction of the backlog of pending patent
applications. The supplemental in 1966 will provide for printing 5,000 additional patents maturing for issuance under the
acceleration provisions of Public Law 89-83.

f

40

[nongovernmental funds:

Advances and reimbursements J06 Exp.
Total, Patent Office
NOA

31,501

Exp.

30,652

33,400 1
A
395
B
605
33,185
A
350

35,935

1,535

35,055 1
A 45

1,565
CD

National Bureau of Standards
General and special funds:

Research and technical services NOA
506
Ex P .




30,844

26,011

33,743 1
B
500
33,761

31,935

-2,308

30,485

-3,276

A decrease of $5.5 million resulting from transfer of Central Radio
Propagation Laboratory to Environmental Science Services
Administration is partially offset by increases to expand standard reference data and performance criteria efforts, provide
more adequate services and research in data processing standards and computer sciences, and to operate new facilities at
Gaithersburg, Md.

Research and technical services NOA
(special foreign currency pro- Exp.
gram)
506

500
644

500
713

500
567

-146

Research grants will be made in excess foreign currencies to
supplement domestic research, principally in standard reference
data and basic scientific measurements.

Plant and facilities

506 NOA
Exp.

3,770
4,318

880
3,700

560
3,700

-320

This partially finances weights and measures standards for
States, and fully funds other acquisitions.

Construction of facilities

506 NOA
Exp.

5,800
24,532

20,873

1,200
8,790

1,200
-12,083

This increase provides for the final increment of the Gaithersburg
construction program.

240

238

294

56

(Contract and grant programs, chiefly in textile research, is being
completed.)

Civilian industrial technology.506 Exp.
Salaries and expenses, Office of NOA
Technical Services
506 Exp.

1,167
1,023

w

(This activity was previously transferred to "Research and
technical services.")

Intragovernmental funds:

506 Exp.

7,622

Total, National Bureau of NOA
Standards.

42,081

Working capital fund

64,390

614

1,025

34,195

-1,428

44,450

-14,424

3,500
2,500

8,000
6,500

4,500
4,000

211,171 1
A
505
B
2,888
C
152
236,289
A454

243,325

28,609

-411
35,123 1
B500
58,874

(Estimated Government equity in the fund will be $167 million
on June 30, 1967.)
O
O

Exp.
Office of State Technical Services
General and special funds:

Grants and expenses

506 NOA
Exp.
198,951
Total, science and technology- NOA

Exp.

229,385

245,843 |
A
51

A
Proposed for separate transmittal, other than pay increase supplemental.
B
Proposed for separate transmittal, civilian pay increase supplemental.
C Proposed for separate transmittal, military pay increase supplemental.




Increase provides for full-year operation of program to make
findings of science available to private enterprise.

a

o

9,151

to
to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

1966

1967

Explanation of NOA requests

decrease ( - )

to
fcO
to

DEPARTMENT OF COMMERCE—Continued
TRANSPORTATION
Maritime Administration
General and special funds—Continued
Ship construction
502 NOA
Exp.
Operating-differential subsidies:
Contract authorization (perma- NOA
nent, indefinite)
502
Liquidation of contract authorization.
Exp.

124,900
92,632

132,150
110,621

85,000
91,530

-47,150
-19,091

Estimate provides for 13 new ships. NOA decrease results from
fewer new ships and change in financing acquisition of replaced
ships.

212,901

190,000

185,000

-5,000

Voyages undertaken under subsidy contract are estimated at
1,611 in 1967, a decrease of 7 voyages from 1966.

(187,500)
213,334

(180,000)
183,453

(175,000)
179,000

(-5,000)
-4,453

d

I—i

Research and development

502 NOA
Exp.

9,500
5,292

6,500
9,300

7,500
8,820

1,000
-480

Estimate will provide increased research to improve efficiency
of U.S. merchant marine and support for nuclear ship Savannah
operations.

Salaries and expenses

502 NOA

15,612

15,790

-43

Programs for administration, reserve fleet, and shipyards and
warehouses will continue at approximately the 1966 level.

Exp.

15,698

15,611
B
222
15,734

15,522

-212

502 NOA

4,517

3,950

4,470

482

Exp.

3,710

4,258

4,504

246

State marine schools
502 NOA
Contract authorization (per- NOA
manent, indefinite).
Liquidation of contract authorization.
Exp.

540
1,324

360
1,240

360
1,275

35

(1,185)
1,511

(1,240)
1,633

(1,275)
1,628

Maritime training




CO

Increase is mainly to equip new library building at the Merchant
Marine Academy.
Federal aid to State marine schools will continue at the 1966 level.

Public enterprise funds:

Federal ship mortgage insurance Exp.
fund
502

-4,517

-3,219

-4,075

-856

revolving Exp.
502

2,250

1,517

-71

-1,588

revolving Exp.
502

-98

-251

-132

Vessel
fund

operations

War risk
fund

insurance

(Guarantees involving a contingent liability of $488 million are
estimated to be outstanding at the close of 1967.)
(Fund is substantially self-supporting.)

119 (Contingent liability in the event of war is estimated at $13
billion.)

Intragovernmental funds:

Advances and reimbursements_502 Exp.
Total, Maritime Administra- NOA
tion.
Exp.

6,916
369,294
336,728

7,188
349,811 1
B
260
330,234

-7,188
299,395
296,726

M

-50,676
-33,508

Bureau of Public Roads
General and special funds:

Forest highways:
Contract authorization:
Current

503
NOA

Permanent
NOA
Liquidation of contract authorization.
Exp.
Public lands highways:
Contract authorization:
Current

A
B

33,000 1
A
-33,000

(32,000)

33,000
(32,000)

32,500

32,367

Legislation will be proposed to extend this program at the
rent level and tofinanceit from the highway trust fund.

o
a

(33,000) 1 (-32,000)
A (-33,000)
33,000 | -32,367
A-33,000

NOA

7,000

D7,000 1
A-7,000

(7,000)

7,000
(8,000)

6,562

11,418

-7,000

(9,000) |
A (-9,000)
9,000 1
A-9,000

(-8,000)

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.




-33,000

503

Permanent
NOA
Liquidation of contract authorization.
Exp.

D

D

33,000

Legislation will be proposed to extend this program at the current
level and tofinanceit from the highway trust fund.

-11,418

to
to
CO

to

ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

Explanation of NOA requests

Increase or
decrease ( - )

1967

1966

DEPARTMENT OF COMMERCE—Continued
TRANSPORTATION—Continued
W

d
o
o

Bureau of Public Roads—Continued
General and special funds—Continued

Highway beautification

503 NOA

70,750

Exp.

Highway safety

11,810

503 NOA

91,750
-91,750
67,690
A
-67,690
A

-70,750
-11,810

310
A-310

-190

It is anticipated that State highway safety standards will be
established by the end of 1967. Legislation will be proposed
to finance this program from the highway trust fund.

130,000

290

130,000
81,500

Provides for continuation of program to build developmental
highways, including access roads, in Appalachian region.

210

-290

A-210

Exp.

190

Appalachian development high- NOA
way system
503 Exp.

200,000
2

Inter-American Highway
152 NOA
Liquidation of contract authorization.
Exp.

2,000

Miscellaneous accounts

503 Exp.

2,887
355

Separate appropriations for control of outdoor advertising and
junkyards, landscaping and scenic enhancement, and administrative expenses, highway beautification, have been combined.
Increase is mainly for the control of outdoor advertising and
junkyards. Legislation will be proposed to finance these programs from the highway trust fund.

20,000

2,000
(6,000)
4,889
1,215

101,500

7,500
500

-2,000 Existing balances are adequate to permit the program to pro(-6,000)
ceed on schedule.
2,611
-715

Trust funds:

Limitation on general administrative expenses.




(48,350)

(51,950)

(57,600)

(5,650) (Increase is largely for an expanded highway safety research
program.)

ii

00

o
>

CO

o

Federal-aid highways (liquidation
of contract authorization).

o
O

(3,898,250)

(3,898,400)

(3,970,000)

A

Forest and public lands highways
(liquidation of contract authorization) .
Highway beautification

A

NOA

(71,600) (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.)

(42,000)

(42,000) (Legislation will be proposed to finance these programs, including
unexpended balances of prior year authorizations, from the
highway trust fund in 1967.)

(151,000)

(151,000) (Legislation will be proposed to finance these programs, including
unexpended balances of prior year authorizations, from the
highway trust fund in 1967.)

° Intragovernmental funds:
<

1

1
1

242,000

113,040

-11

Advances and reimbursements.503 Exp.
261,960 1
—131,960
219,500 1
A-110,000 J

16,960

A

Total, Bureau of Public Roads. NOA
42,307

81,900

Exp.

27,600

Transportation Research and Development

a
>

General and special funds:

Transportation research
A

506 NOA
Exp.

2,000
1,096

3,000
2,000

3,200
3,500

200
1,500

Increase will provide for intensification of research programs to
stimulate more efficient and dynamic transportation.

Proposed for separate transmittal, other than pay increase supplemental.




o

to
to

to
to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967

Increase or
decrease(—)

Explanation of NOA requests

DEPARTMENT OF COMMERCE—Continued
TRANSPORTATION—Continued

w
o
o

Transportation Research and Development—Continued

d

General and special funds—Continued
High-speed ground transportation NOA
research and development
506 Exp.

18,250
4,000

24,000
17,000

5,750
13,000

2,000
1,096

21,250
6,000

27,200
20,500

5,950
14,500

NOA

613,294
380,131

588,555 1
-131,960
536,726 |
A
-110,000

-27,766

Exp.

484,101
B
260
418,134

Total, Department of Com- NOA
merce.

1,006,696

1 1,274,885 |
I A -131,960

46,485

Exp.

758,397

1,091,591
A
505
B
4,192
C
152
803,576
A 454
B
3.877
C
152

Total, transportation research NOA
and development.
Exp.
Total, transportation




A

1 1,033,055
I A -109,949
B
|
315

8,592

115,362

Estimate provides for demonstrations of improved rail service
in the northeast corridor, and an increased level of research on
new systems. Program was first authorized in 1966.
h4

5

DEPARTMENT OF DEFENSE—MILITARY
MILITARY PERSONNEL

(Functional code 051)
General and special funds:

NOA

4,221,000

Exp.

4,221,402

NOA

3,074,000

Exp.

3,141,821

Military personnel, Marine Corps. NOA

750,500

Exp.

749,643

NOA

4,461,100

Exp.

4,548,922

National Guard and Reserve NOA
personnel, Army.

498,400

Exp.

475,473

Military personnel, Army

Military personnel, Navy

Military personnel, Air Force

A

4,092,291
A
833,600
c
222,100
4,465,000
A
535,000

6,164,400

1 016,409

5,930,000

950,000

3,055,000
A
318,500
c
182,600
3,220,000
A
280,000

3,652,100

96,000

3,547,000
A
3,000

50,000

749,900
184,600
c
42,400
805,000
A
145,000

1,183,200

206,300

1,127,000
A
3,000

180,000

4,393,800
A
219,300
c
227,600
4,673,000
A
127,000

5,015,800

175,100

4,928,000
A
2,000

130,000

581,300

13,000

557,000
A
7,000

66,000

A

510,400
53,400
c
4,500
454,000
A
44,000
A




Supplemental in 1966 is for special Vietnam costs. Increase in
1967 is partly for 4,150 added personnel. Average strength
will be 724,151 in 1967.

Supplemental in 1966 is for special Vietnam costs. Increase in
1967 is partly for 28,105 added personnel. Average strength

o
o

will be 272,596 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.

B
r

Supplemental in 1966 is for special Vietnam costs. Increase in
1967 is partly for 74,650 added personnel. Average strength
will be 1,206,574 in 1967.

Supplemental in 1966 is for special Vietnam costs. Average
strength will be 885,419 in 1967, an increase of 18,392.

>
a

Supplemental in 1966 is for special Vietnam costs. Plans are to
reduce year-end paid drill strength from 688,500 to 580,000.
Increase in 1967 includes expanded active duty, college ROTC,
and high school military training programs.

to
to

to
to
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966

Increase or
decrease ( - )

1967

Explanation of NOA requests

DEPARTMENT OF DEFENSE—MILITARY—Continued
d
Q

MILITARY PERSONNEL—Continued
(Functional code 051)—Continued
General and special funds—Continued
National Guard personnel. Air NOA
Force.

64,900

Exp.

65,481

NOA

99,200

105,100 |

111,900

2,200

Exp.

98,764

103^000

105,500

2,500

Reserve personnel, Marine Corps _ NOA

30,900

33,000
A 2,200

36,500

-300

Reserve personnel, Navy

71,300 |
A 5,700
c
3,500
70,000
A5.000

C 1 fiAA
°1,OOU

80,800
75,500 |
A 500

Exp.
Reserve personnel. Air Force




300

30,428

32,300
A 2,000

34,400
A100

NOA

56,856

69,700

Exp.

54,689

60,500
A 2,700
c1,200
58,000
A 2,000

59,500
A500

J

Supplemental in 1966 is for special Vietnam costs. Program
provides for an end strength of 79,800 in both 1966 and 1967.

1,000
Increase in 1967 includes provision for initiation of a secondary
school military training program. Program provides for an
end strength of 126,000 in both 1966 and 1967.
Supplemental in 1966 is for special Vietnam costs. Program
provides for an end strength of 48,000 in both 1966 and 1967.

200
5,300

Supplemental in 1966 is for special Vietnam costs. Year-end paid
drill strength will increase from 47,800 to 50,800. Estimate
supports an expanded college ROTC program and a new high
school military training program.

Total, military personnel

NOA

1,529,000 |
c
71,000
1,579,700

1,399,000

Exp.

Retired pay, Defense.

1,384,286

NOA 14,655,856
Exp.

14,770,910

1,780,000

180,000

1.750,000

Increase in 1967 is for an average of 567,462 retired personnel, as
compared with 512,821 in 1966.

170,300

1,694,309
14,600,291 1 18,675,700
1,620,000
c
761,100
18,113,900 1 1,550,000
15,460,000
A
A
36,100
1,140,000
A

OPERATION AND MAINTENANCE
(Functional code 051)
Operation
Army.

and

maintenance, NOA

3,545,952

Liquidation of contract authorization.

A

3,434,067
1,077,200
B
33,400

(_54,044)

(54,044)
-95,594

Less: Army Reserve and Reserve
Officers' Training Corps items
requested under "Operation
and maintenance, Army National Guard and Reserve"
for 1967.

-115,600

o
o

>
3,450,358
Exp.

4,429,067

5,009,000

3,492,293

4,720,000

579,933

4,550,000
A
180,000
-10,000

Less: Expenditures related to
NOA comparative deduction
above.

-85,447

3,320,000
A860.000
-113,000

Comparative expenditures-

3,406,846

4,067,000

Proposed for separate transmittal, other than pay increase supplemental.
Proposed for separate transmittal, civilian pay increase supplemental.
C Proposed for separate transmittal, nvK*ary pay increase supplemental.




(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.)

3

Comparative NOA

A
B

5,009,000

653,000

Supplemental in 1966 is for special Vietnam costs. Increase reflects support costs for a rise in force level and activities in
Southeast Asia, partially offset by the transfer of Reserve
Forces' costs from this appropriation to "Operation and
maintenance, Army National Guard and Reserve."

!
to

»N3
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966

Explanation of NOA requests

Increase or
decrease ( - )

1967

o

DEPARTMENT OF DEFENSE—MILITARY—Continued
OPERATION AND MAINTENANCE—Con.
(Functional code 051)—Continued
General and special funds—Continued

Operation and maintenance, NOA
Navy.

3,252,174

Exp.

3,171,633

Operation and maintenance, Ma- NOA
rine Corps.

195,020

Exp.

199,595

Operation and maintenance, Air NOA
Force.

4,622,331

Exp.

4,524,137

Operation and maintenance, De- NOA
fense agencies.

517,994




3,292,137
A
506,000
B
23,000
3,310,000
A
390,000

3,982,900

161,763

3,740,000
A
100,000

140,000

192,101
102,600
B
1,054
186,000
A
75,000

325,600

29,845

275,000
25,000

39,000

4,942,600

-33,637

A

4,403,737
A
544,900
B
27,600
4,342,300
A
450,000
683,680
41,769

A
B

Exp.

490,294

Supplemental in 1966 is for special Vietnam costs. Increase in
1967 primarily reflects additional nuclear-powered and guidedmissile ships, and greater ship modernization and modification.
Southeast Asia funding drops slightly due to large nonrecurring
costs of activating ships and units in 1966.

4,692,000
A
78,000

I

— 22,300

808,100

68,295

745,000
A
5,000

47,000

14,356

668,000
35,000

A

A

Supplemental in 1966 is for special Vietnam costs. Increase
reflects support costs for higher force level and activities in
Southeast Asia.

Supplemental in 1966 is for special Vietnam costs. Decrease is
due to phaseout of older bombers, tanker and interceptor aircraft, and elimination of bases no longer required, partially
offset by full-year effect of higher force levels and activity
rates in Southeast Asia.
Supplemental in 1966 is for special Vietnam costs. Increase in
1967 reflects full-year effect of contract audit and administration functions transferred from the military departments.

I
a
OS

Operation and maintenance, Army
National Guard and Reserve.

NOA

208,796 |
35,700
B
2,000
115,600

340,600

362,096

340,600

207,800
33,000
113,000

308,000
A
2,000
10,000

191,424

A

Add: Army Reserve and Reserve
Officers' Training Corps items
appropriated under "Operation and maintenance, Army"
for 1965 and 1966.

95,594

Comparative NOA

287,018
Exp.

188,271

A

Add: Expenditures related to
comparative NOA addition
above.

85,447

-21,496

1
1

Comparative expenditures. -

273,718

353,800

320,000

NOA

233,196

250,200

3,100

235,928

238,000 ]
A
8,100
B
l,000
233,890
A
5,000

239,000 I
A
1,000

1.110

National Board for the Promotion of Rifle Practice, Army.

NOA
Exp.

484
454

Claims, Defense
Reappropr iation

NOA
NOA
Exp.

23,000
6,000 |
28,614

NOA
Exp.

I

15,000

459

494

35

450

485

.._.

24,000

25,000

1,000

24,800

Program in 1967 will assist about 5,900 clubs and schools to promote interest in small arms marksmanship.

a

A higher level of claims is expected as the military buildup proceeds.

800

15,000
15,000
6,976
10,000
10,000
Court of Military Appeals, De- NOA
579
579
fense.
»11
600
Exp.
580 }
A
Proposed for separate transmittal, other than548 increase supplemental.
pay
B
595
Proposed for separate transmittai, civilian pay increase supplemental.




Increase supports a higher flying-hour program.

35

24,000
Contingencies, Defense.

ft)

-33,800

Exp.

Operation and maintenance, Air
National Guard.

Decrease reflects a reduction in year-end paid drill strength from
688,500 to 580,000 and elimination of one-time 1966 costs of
clothing, equipment, and repair parts.

This account provides the Secretary of Defense with funds to
meet emergencies and extraordinary expenses.
10
15

Caseload is expected to rise as the number of men in uniform
increases.
fcO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

to
CO

1965
enacted

Account and functional code

1966
estimate

1967

Explanation of NOA requests

Increase or
decrease(—)

to

DEPARTMENT OF DEFENSE—MILITARY—Continued

OPERATION AND MAINTENANCE-Con.
(Functional code 051)—Continued

w
d
o

General and special funds—Continued

Miscellaneous expired accounts,__ Exp.

9,975

Total, operation and mainte- NOA 12,603,155
nance
Exp.

12,348,718

8,980

4,120

-4,860

12,492,556
2,316,269
B
102,421

15,700,094

788,848

12,312,000
1,848,000

14,589,000
A391,000

820,000

A

A

Hi

PROCUREMENT
(Functional code 051)
Procurement of equipment and NOA
missiles, Army.
Exp.

1,782,996

1,709,300
2,465,000

F

3,311,100

-863,200

1,764,065

1,960,000
A
310,000

1,935,000
A 1,285,000

950,000

Supplemental in 1966 is for equipment and munitions for special
Vietnam support. In 1967, provision is made for achieving
inventory objectives and accelerating the rate of inventory
modernization; decrease reflects heavy 1966 funding of special
Vietnam costs.

Procurement of aircraft and mis- NOA
siles, Navy.
Exp.

2,551,858

2,410,587 | D 1 , 7 8 9 , 900 -1,385,187
A
764,500
2,290,000
300,000
2,260,000
A310,000
M0,000

Supplemental in 1966 is for special Vietnam costs for aircraft,
missiles, spares, and support equipment to replace combat
losses. Decrease in 1967 reflects achievement of inventory
objectives for carrier interceptor aircraft with prior year funds.

Shipbuilding
Navy.

1,905,376

1,590,500

1,716,540

1,650,000

and




conversion, NOA
Exp.

2,210,509

D

1,751,300
1,700,000

160,800 Fleet modernization and replacement will continue for anti-air,
anti-submarine, amphibious, and mine warfare forces, and the
50,000
underway replenishment forces. Increase includes funds for
construction of a nuclear-powered aircraft carrier.

Other procurement. Navy

NOA
Exp.

Procurement, Marine Corps

1,302,090 I
A
607,500
1,023,000
A
52,000

1,155,631
827,010

NOA

164,944

1,968,300
1,165,000
A
355,000
G

192,900
516,600
210,000
A
70,000

A

Exp.

154,342

Aircraft procurement, Air Force. _ NOA

3,622,537

Exp.

3,114,807

Missile procurement, Air Force. _ NOA

3,675,500
M,585,700
3,770,000
A
130,000

A

D

58,710 | Supplemental in 1966 results from special Vietnam costs for
combat consumption. In 1967, modern ordnance and equipment is being procured both for normal fleet inventories,
445,000
usage, and replacement, and for Southeast Asia requirements.

262,900

-446,600

245,000
255,000

220.000

3,961,300 -1,299,900
-200,000

775,900 } D l,189,500
63,700
1,014,000
1,192,000
A
A
18,000
41,000

1,715,200

3,050,000
A
650,000

349,900

A

Exp.

Other procurement, Air Force

1,320,192

NOA

875,296
A

Exp.

665,536

-155,000

1,189,700
1,016,400
1,070,000
A
75,000

2,122,600

-83,500

1,256,000
A
374,000

485,000

Supplemental in 1966 is for equipment and munitions for special
Vietnam support. Provision is made in 1967 for achieving
inventory objectives; decrease reflects heavy 1966 funding of
special Vietnam costs.
Supplemental in 1966 is for special Vietnam costs for aircraft,
spares, and support equipment to replace combat losses. The
1967 program includes continued modernization of tactical air
wings, introduction of a new strategic bomber, and a further
increase in airlift capability; the decrease reflects heavy 1966
funding of special Vietnam costs.
Supplemental in 1966 is for special Vietnam costs. Total 1967
program is about the same as the 1966 program. Increase
results from use of prior year funds in 1966.
Supplemental in 1966 is for special Vietnam costs for conventional ordnance and munitions. In 1967, procurement of
conventional ordnance and cryptographic, warning, communications, and control systems will continue.

Procurement, Defense agencies. ... NOA
Exp.

62,000
42,216

15,200
35,000

51,300
40,000

36,100
5,000

Increase reflects procurement of automatic data processing equipment by the Defense Supply Agency to improve supply management.

Aircraft and related procurement, Exp.
Navy.

24,121

15,000

5,000

-10,000

(Program needs are now provided in other appropriations above.)

Total, procurement

NOA

13,835,838

12,861,677
7,019,400
13,185,000
A
695,000

16,408,200 -3,472,877

A

Exp.

A
B
D
F
G

11,839,339

12,700,000
3,270.000

A

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 $1,308,200 thousand to carry out authorizing legislation to be proposed.
Includes $21,400 thousand to carry out authorizing legislation to be proposed.




2,090,000

4

to
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

1967

Increase or
decrease(—)

Explanation of NOA requests

DEPARTMENT OF DEFENSE—MILITARY—Continued

3
W

d

RESEARCH, DEVELOPMENT, TEST,
AND EVALUATION

o
o

(Functional code 051)
General and special funds—Continued

Research, development, test, and NOA
evaluation, Army.
Exp.

1,401,767

Research, development, test, and NOA
evaluation, Navy.
Exp.

1,388,253

Research, development, test, and NOA
evaluation, Air Force.
Exp.

3,175,300
3,145,756

Research, development, test, and NOA
evaluation, Defense agencies.
Exp.

505,980
452,425




1,344,396

1,293,639

1,433,988 1 D l , 518,900
A
27,995
1,396,000
,420,000
A
M,000
15,000

56,917

1,513,130 } D 1,748,600
A
52,570
1,540,000
1,392,000
A
A
25,000
8,000

182,900

3,181,956 l D 3,053,800
A
71,085
2,900,000
3,082,000
A
A
40,000
18,000

-199,241

491,300
470,000

D

459,059
450,000

35,000

165,000

-160,000

-32,241
-20,000

Supplemental in 1966 is for special Vietnam costs. Increase
includes increased development effort on the Nike-X system,
and continued emphasis on conventional and limited war systems.

i i

GO
Cl
>
>

Supplemental in 1966 is for special Vietnam costs for developments such as aircraft-launched tactical missiles and fast
deployment logistic ships. Increase in 1967 is mainly for
expanded development of the Poseidon missile.

F

Supplemental in 1966 is for special Vietnam costs for accelerated
development and modification of equipment. Decreases for
several large systems nearing the end of development, such as
the F-111A, more than offset increases for such programs as
the C-5A cargo transport and Minuteman III missile in 1967.

CO

Decrease reflects small reductions in a number of programs. Programs in ballistic missile defense, nuclear underground tests,
nuclear test detection, remote area conflict, and aircraft penetration problems will continue.

NOA
Exp.

11,627

Total, research, development, NOA
test, and evaluation.
Exp.

6,482,926

Emergency fund, Defense.

6,236,216

19,426

125,000
10,000

6,639,800 1 6,905,359
A
151,650
6,340,000
6,320,000 1
A
A
30,000
80,000

105,574
10,000

Funds are transferred to other appropriations for prompt exploitation of research and development opportunities. The 1965 and
1966 amounts are balances remaining after such transfers.

113,909
30,000

MILITARY CONSTRUCTION

a

(Functional code 051)
Military construction, Army

„ NOA

345,193

Exp.

199,220

NOA

269,867

Exp.

245,087

Military construction, Air Force. _ NOA

373,101

Exp.

489,626

411,443 )
509,700
260,000
A
60?000

Military construction, Navy_




A

H190,600
A

245,000 1
135,000

372,615 |
254,600
245,000
A
30,000

r

419,673 1
274,100
435,000
A
30,000

J

A

A

133,600

180,000 1
A
70,000
242,900
295,000 1
90.000

A

-730,543
60,000

-493,615
-25,000

-450,873
-80,000

Supplemental in 1966 is for special Vietnam costs. Decrease in
1967 reflects reduced replacement of troop housing, bachelor
officers quarters, and maintenance, administrative, and medical
facilities. Financing for operations in Southeast Asia will decline due to heavy 1966 funding.
Supplemental in 1966 is for special Vietnam costs. Decrease in
1967 reflects reduced replacement of troop housing, bachelor
officers quarters, and training, medical and shipyard facilities.
Financing for operations in Southeast Asia will decline due to
heavy 1966 funding.
Supplemental in 1966 is for special Vietnam costs. Decrease in
1967 reflects reduced replacement of troop housing, bachelor
officers quarters, and administrative, medical, and research
facilities. Financing for operations in Southeast Asia will decline due to heavy 1966 funding.

o
a

3

O

oo
I Ox

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)-Continued
1965
enacted

Account and functional code

Explanation of NOA requests

to
00

Supplemental in 1966 is for facilities which may be needed in
emergency situations. Decrease in 1967 reflects a lower level
of modernization and replacement projects, and nonrecurrence
of emergency facilities funding.

d

Increase or
decrease ( - )

1967

1966

DEPARTMENT OF DEFENSE—MILITARY—Continued
MILITARY CONSTRUCTION—Continued
(Functional code 051)—Continued
General and special funds—Continued

Military construction,
agencies.

Defense NOA

14,397

K

19,768
200,000
20,000
A
20,000

7,547

-212,221

A

Exp.

31,669

Military construction, Army Na- NOA
tional Guard.
Exp.

10,800
11,094

Military construction, Air National NOA
Guard.
Exp.

14,000
13,805

10,000
10,000

20,000 1
55,000

10,000
8,000

A

35,000

-10,000
700

An expanded program in 1967 will be financed from balances
transferred from Military Construction, Army Reserve.

9,400
10,000

-600

Estimate provides for an obligation program of $14 million,
carrying forward uncompleted projects from the 1965 and 1966
programs.
Decrease from 1965 reflects transfer of Army Reserve facilities to
the National Guard to be made in 1967.

8,700
L

Military construction, Army Reserve.

NOA
Exp.

5,000
5,958

2,000

300

-1,700

Military construction, Naval Reserve.

NOA
Exp.

7,000
6,813

9,500
6,000

^5,400
6,000

-4,100

Estimate provides for an obligation program of $8 million, carrying
forward the 1965 anal 1966 programs.

Military construction, Air Force
Reserve.

NOA
Exp.

5,000
3,635

4,000
4,000

N3,600
5,000

-400
1,000

Estimate provides for an obligation program of $7 million, carrying
forward the 1965 and 1966 programs.

Loran stations, Defense

NOA
Exp.

5,000

5,000
10,000

-5,000
-10,000

NOA

1,049,358

1,261,999
1,238,400
1,000,000
A
140,000

593,047 -1,907,352

Total, military construction__




A

Exp.

1,006,908

A

Q

770,000 1
350.000

-20,000

No new facilities will be provided in 1967.

s

FAMILY HOUSING

i

(Functional code 051)

631,151
618,653

665,846
650,000

(Functional code 051)
Operation and maintenance, civil NOA
defense.
Exp.

74,985
58,204

Research, shelter survey
marking, civil defense.

and NOA
Exp.

Construction
defense.

civil Exp.

Family housing, Defense

NOA

D

521,900
545,000

-143,946
-105,000

Decrease reflects deferral of construction programs to help meet
higher priority requirements connected with Southeast Asia-

64,066
66,000

76,100
60,000

12,034
-6,000

Increase is for balanced expansion of all civil defense activities,
with special emphasis on strengthening State and local government operations.

30,200
34,486

42,700
33,750

57,300
39,500

14,600
5,750

Increase is primarily to test provision of low-cost, dual-use public
fallout shelters in new construction projects.

35

250

500

250

(Balances are being used for Federal regional emergency operating
center site surveys, planning and construction.)

105,185
92,726

106,766
100,000

133,400
100,000

26,634

Exp.
CIVIL DEFENSE

of facilities,

Total, civil defense

NOA
Exp.

O

a

REVOLVING AND MANAGEMENT
FUNDS

D
O

(Functional code 051)
Public enterprise funds:
Defense production guarantees--

-2,484

-1,830

-845

985

(Revenues from loan collections, fees, and interest will exceed
purchase cost of defaulted loans.)

Laundry service, Naval Aeademy- Exp.

-14

_o.

-8

1

(Estimate contemplates receipts and expenditures of about
$740 thousand, slightly greater than those of 1966.)

Civil defense procurement fund__ Exp.

-8

A
D
K
L

Exp.

Proposed for separate transmitta), other than pay increase supplemental.
To carry out authorizing legislation to be proposed.
Includes $5,447 thousand to carry cut authorizing legislation to be proposed.
Includes $8,900 thousand t o carry out authorizing legislation to be proposed.
M Includes $5,000 thousand to carry out authorizing legislation to be proposed.
N
Includes $3,300 thousand to carry out authorizing legislation to be proposed.




3

3

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
1965
enacted

1966

1967

AGENCY (in thousands of dollars)—Continued

Increase or

Explanation of NOA requests

DEPARTMENT OF DEFENSE—MILITARY—Continued
REVOLVING AND MANAGEMENT
FUNDS—Continued

a

(Functional code 051)—Continued

Army stock fund _ _ _ _

_ _ . Exp.

-100,427

102,744

-95,300

-198,044

(Sales will exceed purchases in 1967 reflecting the sale of stock
not requiring replacement.)

_ _ Exp.

-2,598

43,400

-31,900

-75,300

(Sales will exceed purchases in 1967 reflecting the sale of stock
not requiring replacement.)

Marine Corps stock fund. __ _ _ Exp.

-7,488

-17,414

5,640

23,054

(Increase in 1967 is due to liquidation of obligations incurred
in 1966.)

Air Force stock fund___ .__ __ _ Exp.

28,211

-10,300

5,200

15,500

(Purchases will exceed sales in 1967 due to higher inventory
requirements.)

Navy stock fund

_

Defense stock fund

Exp.

-191,872

67,800

14,200

-53,600

Army industrial fund _

Exp.

729

2,200

15,300

13,100

(Expenditures will continue to exceed collections in 1967.)

Navy industrial fund- _ _

Exp.

-375,795

-73,500

-24,900

48,600

(Work performed in 1966 and 1967 will be partly financed from
prepaid orders in prior years.)

_ Exp.

-4,540

-30,883

30,883

(Operations will break even in 1967 after large collections in 1966
due to accelerated billing.)

_.. Exp.

998

-16,500

14,800

(Expenditures will increase after surge in collections in 1966 due
to accelerated billing.)

Air Force industrial fund

Defense industrial fund




-1,700

d
o
o

i
F

(Due to increased sales of stock not requiring replacement, purchases will not exceed sales by as much as in 1966.)
CO
OS

Army management fund-

Exp.

-2.826

Navy management fund

Exp.

-83,122

-41.492

-1,187

Air Force management fund

Exp.

82

100

100

management Exp.

-27

Exp.

415

400

Consolidated working funds. Army Exp.

163

284

Total, revolving and manage- Exp.
ment funds.

-740,601

25,000

Defense
fund.

agencies

Naval working fund

Total, Department of De- NOA49,363,468
fense—Military.
Exp. '46,172,869

A
B
c

(Fund will operate at $428 million level in 1967.)

!
40,305

(Total activity of $1.1 billion is forecast for 1967.)
(Liquidation of prior year obligations continues.)
(Fund will not be used in 1966 or 1967.)

A

400

(Estimate reflects an activity level of $18 million in 1967.)
-284

-115,000

(Account will be inactive in 1967.)

-140,000

48,628,934 1 58,937,700 -2,900,474
12,345,719
B
102,421
c
761,100 )
52.999,950 1 4,225,000
48.235,000
A
M , 127,100
3,853,000
B
B
94,000
7,950
c
c
742,000
15,000

o
o

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.




to
CO
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1967
estimate

1966
estimate

Increase or
decrease(—)

Explanation of NOA requests

DEPARTMENT OF DEFENSE—CIVIL
DEPARTMENT OF THE ARMY
Cemeterial Expenses
General and special funds:

805 NOA

15,164

Exp.

Salaries and expenses

12,099

13,739
B
67
14,819

}

15,098

1,292

15,824

Increase reflects rise in headstone applications and cemetery construction and land development projects.

1,005

1

Corps of Engineers—Civil
General investigations

401 NOA
Exp.

Construction, generaL

401 NOA
Exp.

24,194
21,900

956,956
860,648

Operation and maintenance, gen- NOA
eral__
401

162,423

Exp.

182,431

Flood control and coastal <imer- NOA
gencies
401 Exp.

14,150
20,913




w
d
a

32,078
31,900

25,465
25,500

970,726
967,950

994,179
926,917

175,762
A
2,200
B
907
C
13
175,850
A-l,900
12,000
12,800

i

6,613
6,400

-23,453
41,033

183,158

4,276

183,000 1
A 300

Provides funds for 261 flood control, navigation, and beach erosion studies, of which 33 will be started in 1967. Comprehensive river basin surveys for the California, Lower Colorado,
and Upper Colorado regions and special studies of the Chesapeake Bay and Northeast water supply needs will be started.
Funds in 1967 will continue construction on 236 projects; 35
projects, costing $462 million, will be completed and 25 projects, costing $237 million, will be started. Preconstruction
planning will continue on 71 projects and will be initiated on
27 projects.
The supplemental in 1966 is for increased wage-board pay. Workload in 1967 involves maintenance of 482 projects.

5,550

7,000
9,000

-5,000
-3.800

Provides funds for emergency operations to combat flood disaster
situations.

GO

a
>

CO

General expenses

401

NOA

16,163

16,537
B
361

17,898

976

C

Exp.
Flood control, Mississippi River NOA
and tributaries
401 Exp.
Payments to States, Flood Con- NOA
trol Act of 1954 (permanent, Exp.
indefinite, special fund) 401
Corps of Engineers—Civil special NOA
expense funds (permanent, in- Exp.
definite, special funds)
401

Increase provides for management and supervision of larger program workload and for strengthening planning, research
direction, and program analysis capability.

15,947

24
16,860

17,850

990

77,862
73,623

84,942
83,300

77,100
78,000

-7,842
-5,300

Construction is continued on 10 major project features, and provision is made for project operation and essential maintenance.

1,959

1,828
1,959

1,928
1,828

100
-131

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.

172
180

172

172
172

12

5

-8,403

-265

1,721

174

-2

Fees paid by mine operators for depositing mine debris in restraining works are used for their maintenance. Half of the
receipts from Federal Power Commission licenses are used for
maintenance of navigation improvements.

I nongovernmental funds:

Advances and reimbursements, Exp.
Corps of Engineers—Civil __401
Revolving fund, Corps of En- Exp.
gineers—Civil
.
401

-5
265 (The fund provides centralized services and facilities to agency
programs.)

Total, Corps of Engineers^- NOA
Civil.

1,253,879

1,310,885
A
2,200
B
1,268
C
37

1,290,060

-24,330

Exp.

1,168,972

1,243,100
A
1,900

1,289,700
A300

45,000

14,441

14,733
B
40

14,893

120

12,856

12,718

14,762

2,044

Ryukyu Islands, Army
General and special funds:

Administration

910 NOA
Exp.

A
B
c

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




Increase in 1967 reflects full-year costs of the civilian pay increase and 1966 wage board increases.

W
O

a

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967

Increase or
decrease (—)

to

Explanation of NOA requests

DEPARTMENT OF DEFENSE—CIVIL—Continued
DEPARTMENT OF THE ARMY—Con.
Ryukyu Islands, Army—Continued

w

General and special funds—Continued

Construction of power systems.910 Exp.
Ryukyuan pretrea ty claims

A

910 NOA

-916

(Expenditures are loans from prior-year funds, decreasing
because of completion of Kin powerplant in 1965.)

8,200

-21,040
8,200

Supplemental in 1966 is for payments to certain inhabitants of
the islands for damages by U.S. Forces before the signing of
the Japanese Peace Treaty.

14,893

-20,920

916

3,297

21,040

A

Exp.
14,441

14,733

16,153

A21,040
B40
13,634

Total, Ryukyu Islands, Army. NOA

CO

o
14,762
A8.200

9,328

33,762

2,358

28,600

31,000 1
*404 I
31,297

33,542

2,245

Increase allows expanded operation of schools to accommodate
added Zone-based military personnel and dependents and
upgrading of health services.

910 NOA
Exp.

4,821
4,386

9,000
8,014

4,186
8.575

-4,814
561

Provides $2,345 thousand for education facilities, $575 thousand
for health and sanitation, and $1,266 thousand for other needs.

Panama Canal Company: Thatcher Exp.
Ferry Bridge.
502

327

38

-38

(Bridge went into service in 1962 and 2 more approaches were
constructed in 1965.)

Exp.
THE PANAMA CANAL
Canal Zone government:
Operating expenses
910 NOA
Exp.
Capital outlay




29,960

CO

a

Public enterprise funds:

Limitation on general and administrative expenses.

3,100

1,163

(10,824)

Panama Canal Company fund _502 Exp.

(11,000) |

-3,091

-1,928

(1,432)

(12,569)

B(137)

Total, The Panama CanaL _ _

NOA
Exp.

34,781
36,412

40,000 1
B404
40,512

37,948

-2,456

40,189

(Receipts from operations are expected to increase $2.1 million,
while gross expenditures decline $1 million.)
(Increase due mostly to initiation of an expanded training
program.)

-323

UNITED STATES SOLDIERS' HOME
Trust fund:

(7,018)

(7,076) 1
A (90)
B
(56)

(7,433)

(211)

(The supplemental in 1966 is for increased wage board pay.
Increase in 1967 provides for a slight rise in domiciliary members and hospital patients, improved staffing, and physical
improvements.)

(3,575)

Operation and maintenance

(3,575)

(Estimate provides a new wing for 366 additional domiciliary
beds.)

J

Capital outlay.

O
O
ft)

MISCELLANEOUS ACCOUNTS
General and special funds:

Wildlife conservation, etc., mili- NOA
tary reservations (permanent, Exp.
indefinite, special funds) 404

Total, Department
fense—Civil.

of De-

NOA 1,318,439

Exp.

A
B
c

174
122

1,233,759

1,379,560 1
A
23,240
B
1,779
C37
1,310,560
A 1,900
B1,642
C34

J

Fishing and hunting license fees are used to carry out afishand
game conservation program.

-46,413

1,358,203

1,360,525 1
^8,500
B
137
C3

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.




1
19

204
190

203
171

55,029

J

to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
1967

1966

1965

Increase or

AGENCY (in thousands of dollars)—Continued
Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, AND

WELFARE

FOOD AND DRUG ADMINISTRATION
General and special funds:
Salaries and expenses

Buildings and facilities

651

651

NOA
Exp.

NOA
Exp.

Pharmacological-animal labora- Exp.
tory building
651

40,368
40,033

52,939
49,800

10,875
790

5,720

25

63,454
60,000

10,515
10,200

4,080
5,000

-1,640
4,000

45

1,000

-45

Provides for intensified efforts in review of new drug applications,
regulation of drug sales, control of psycotoxic drugs, scientific
information, and increased inspection of food imports.

-199

284

-55

-339

Total, Food and Drug Ad- NOA
ministration.
Exp.

51,243
40,649

58,659
51,129

67,534
64,945

A second headquarters laboratory building at Beltsville will be
planned and additional equipment provided for district laboratories.
(Laboratory was completed in 1964.)

8,875
13,816

166,296

252,491
A
1,000
181,800
A 570

250,791

-2,700

214,660
A
390

32,680

(Industry fees finance the certification of antibiotic drugs, insulin,
and color additives and the establishment of tolerances for
pesticides.)

OFFICE OF EDUCATION




o
a

CD

Public enterprise funds:
Revolving fund for certification Exp.
and other services_ _
651

General and special funds:
Expansion and improvement of NOA
vocational education
704
Exp.

a

124,388

Supplemental will initiate newly authorized student aid programs.
1967 estimate reflects reduction in work study assistance as the
Neighborhood Youth Corps program assumes responsibility.
Provides for planning of experimental residential vocational
schools and for construction of vocational schools in Appalachia.

P

Elementary and secondary educa- NOA
tional activities
701
Exp.

A

188,623 1
11,000
74,407
A
3,000

Higher educational activities:
NOA
(Assistance for higher education)
702 Exp.

A

30,000 1
13,200
3,000
A
1,000

(Other aids to education) _ _ 704 NOA

°381,400
237,550 1
A
8,000
i
93,872

A

Exp.
Total, higher
activities.

967,000 [ D 1,342,410
184,000
1,016,000 [
295.000
A
184,000

218,623 1
24,200
77,407
A
4,000

educational NOA

A

Higher education facilities con- NOA
struction
702 Exp.

463,150
3,588

632,700
147,000

Further endowment of colleges of NOA
agriculture and the mechanic Exp.
arts
702

11,950
11,950
55,000
26,111

55,000
35.000

704 NOA
Exp,




Supplemental will initiate college library program. Assistance
will be expanded, under Higher Education Act of 1965, for
168,143
financially needy students, college libraries, and strengthening
of developing colleges.
50,672
59,000

Supplemental will initiate National Teacher Corps program.
Assistance will be expanded for university community services,
for teacher training, and teacher corps in 1967.

288,550 |
20,000

227,143

722,744
396,000 1
A
-85,000

90,044
164,000

Additional construction loans for academic facilities is the principal reason for the increase. Proposed legislation will authorize
sale of participation certificates in a loan pool.

-11,950
-11,950

Grants to land-grant colleges are not being requested in recognition of increased support through other higher education
assistance programs.

2,500
16,100

Library services will be extended to approximately 2.5 million
additional people in 1967, and services will be improved for
another 25 million. About 400 building projects will be under
construction in 1966 and an additional 400 in 1967.

A
D

D

57,500
51,100

A
Proposed for separate transmittal, other than pay increase supplemental.
To carry out authorizing legislation to be proposed.
° Includes $30,000 thousand to carry out authorizing legislation to be proposed.

D

181,777

232,449

11,950
11.950

Grants for public libraries

905,000

Supplemental will provide full amount required by States under
existing law for education of disadvantaged children. Grants
will increase in 1967 for this program, as well as for school library
and textbooks, projects to supplement regular school instruction, and strengthening State education agencies, all authorized
by 1965 Elementary and Secondary Education Act.

475,272

A

Exp.

51,000
12,000 1

191,410

o
a

a

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967
estimate

Increase or
decrease(—)

Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
OFFICE OF EDUCATION-Continued
General and special funds—Continued
Payments to school districts __ 701 NOA
Exp.

332,000
311,413

347,000
307,000

183,400
222,000

-163,600
-85,000

Proposed new legislation will decrease requirements. In 1967,
payments will be made in support of 1.6 million children and
3,150 school districts affected by Federal activities, compared
to 2.2 million children and 4,200 school districts in 1966.

50,078
47,000

22,937
45,000

-2/,141

97,100
67,875

112,700
81,000

87,700
79,000

-25,000
-2,000

Reduction in school equipment grants reflects more than compensatory increase of Federal school support under 1965
Elementary and Secondary Education Act. Grants to States
for guidance programs continue at 1966 level.

(Assistance for higher educa- NOA
tion)
702
Exp.

189,890

248,711

158,324

214,000

128,844 1 -154,054
-34,187
127,200 | -120,987
A
-34,187

Decrease from substitution of subsidized loan guarantees for direct loans more than offsets support for 15,000 graduate fellowships (10,494 in 1966). Proposed legislation terminates direct
loan program, retaining teacher service cancellation.

(Other aids to education) _ .704 NOA
Exp.

61,613
44,084

51,197
25,000

5,803
23,800

Teacher training institute programs will reach 28,000 participants
in 1967.

educational NOA

348,603

412,608

Exp.

270,283

320,000

Assistance for school construe- NOA
tion
701 Exp.

Defense educational activities:
(Assistance for elementary and NOA
secondary education)
701 Exp.

Total, defense
activities.




58,400
38,258

-2,000

A

57,000
48,800

273,544 1 -173,251
-34,187
255,000 1 -99,187
A
-34,187
A

Legislation authorizing construction on behalf of children whose
parents work on Federal property expires at the end of 1966.
In 1967, approximately 1,000 classrooms for 29,000 pupils will
be constructed for children whose parents both live and work on
Federal property.

d

s
O

Educational improvement for the NOA
handicapped
704 Exp.

16,500
13,849

25,500
16,000

32,600
24,000

7,100
8,000

Provides for increase in teacher training fellowships and research
relating to education of handicapped children.

Research and training

704 NOA
Exp.

15,840
13,248

70,000
21,400

80,000
58,000

10,000
36,600

Increase is for newly authorized educational laboratories, and
expanded support for new course materials and research
centers focusing on specific educational problems, such as
education of the disadvantaged.

Educational research (special NOA
foreign currency program)..704 Exp.

500
129

1,000
700

1,800
1,100

800
400

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
studies
704 Exp.

1,500
1,356

2,000
1,200

3,500
2,200

1,500
1,000

Grants are awarded for study abroad, aimed at improving U.S.
instruction in foreign languages and areas.

.704 NOA
Exp.

20,128

30,136
29,000

41,563
39,300

11,427
10,300

Increases provide staff to administer new grant programs, expand
educational data systems, and strengthen technical assistance
and other field services.

Civil rights educational activi- NOA
ties
704
Exp.

8,000

5,000
3,250
4,500
A 1,500

11,115

2,865

7,250 1
A
l,750

3,000

Supplemental in 1966 will finance additional training for alleviation of problems occasioned by desegragation of schools. Institutes for school personnel, grants to schools, and technical
assistance will be expanded in 1967.

Salaries and expenses.

17,732

1,292

Arts and humanities educational NOA
activities
704 Exp.

A

1,000
200

1,000
1,000

2,550
2,550

2,550
2,550

Annual grants of $50,000 are made to each State and to Puerto
Rico.

7,161
7,161

Grants are made to States on a matching basis for training and
paying salaries of teachers of agriculture, trade, home economics, and industrial subjects.

Colleges for agriculture and the NOA
mechanic arts (permanent).702 Exp.

2,550
2,550

Promotion of vocational educa- NOA
tion, act of Feb. 23, 1917 (per- Exp.
manent, indefinite)
704

7,161

7,161

7,137

7,161

A

o
o

800

Grants to States for school equipment and teacher training institutes in the arts and humanities will continue at 1966 level.

Proposed for separate transmittal, other than pay increase supplemental.




to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

Increase or
decrease(—)

1967
estimate

Explanation of NO A requests

to
00

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
!

OFFICE OF EDUCATION-Continued
Public enterprise funds:
Student loan insurance fund_ _ 702 NOA
Exp.

500
23

3,200
200

2,700
177

-1,409

-57

13

70

NOA

1,507,578

E.xp.

841,875

3,092,297
A 212,450
1,504,834
A
6,070

Intragovernmental funds:
Advances and reimbursements.704 Exp.
Total, Office of Education. _.

Provides additional capital for approximately 100% increase in
direct Federal guaranteed loans to students not having access
to State or private loan insurance funds.

174,153
3,513,087 }
-34,187
2,631,084 1 1,207,133
A
86,953

A

2
CD

VOCATIONAL REHABILITATION
ADMINISTRATION
General and special funds:
Grants for rehabilitation services NOA
and facilities. _
659
Exp.

100,100
95,661

132,310 )
39,000
121,000 }
A
39,000 1
A

259,060

87,750

250,000

90,000

Supplemental in 1966 provides first of 2-step increase in Federal
matching rates resulting from legislation enacted in 1965.
Funds for second step are included in 1967 as well as grants for
construction of workshops and rehabilitation centers and payment of training allowances. An estimated 215,000 handicapped individuals will be rehabilitated in 1967; 25% more
than in 1966.

659 NOA
Exp.

41,065
37,057

53,145
49,000

60,325
55,500

7,180
6,500

Supports 449 research and demonstration projects, 12,233
traineeships, 705 teaching grants, and 17 reserach and training
centers.

Research and training (special NOA
foreign currency program)..659 Exp.

2,000
1,519

2,000
1,800

4,000
2,800

2,000
1,000

Excess foreign currencies in 8 countries support use of oversea
facilities for rehabilitation research and the exchange of rehabilitation experts.

Research and training




td

d

Correctional Rehabilitation Study NOA
Act of 1965___
659 Exp.
659 NOA
Exp.
Limitation payable from old-age
and survivors insurance trust
funds.

800
800

3,232
3.086

3,875
3,800
(115)

5,082
4,950
(299)

-10

Sa 1 aries and expenses

560
555

-1

Provides Federal share of a 3-year research study of personnel
.practices and needs for rehabilitation of public offenders.

-1

240
245

1,207 Increase to administer expanded Federal grant program and
1,150
strengthen specialized services to States and nonprofit grantees. Rehabilitation of social security disability beneficiaries
(184)
arefinancedfrom trust funds.

Intragovernmental funds:

Advances and reimbursements-659
Total, Vocational Rehabilita- NOA
tion Administration.
Exp.

146,397
137,313

191,890 |
39,000
176,154 |
^39,000

329,267

98,377

314,049

98,895

A

PUBLIC HEALTH SERVICE
General and special funds:

651

NOA
Exp.

22,512
16,519

8,977
25,000

18,279
23,000

9,302
-2,000

Provides $7.6 million for projects of the Bureau of State Services,
$5.8 million for the Bureau of Medical Services, and $4.7 million
for the National Institutes of Health.

651

NOA
Exp.

3,886
3.839

4,350
4,100

5,760
5,500

1,410
1,400

Chronic diseases and health of the NOA
aged
651 Exp.

53,908

83,070

3,589

51.359

65,000

86,659
70,000

Increases are provided principally for heart disease, cancer,
stroke, and respiratory disease programs.

o

s

Increase is primarily for research, training, and technical services.

Buildings and facilities

Community Health
Injury control

Community health practice and NOA
research
651
Exp.
Limitation payable from trust
funds.
A

33,230

87,169

25,492

60,000

103,228
-20,900 I
86,900
A -20,900 1

A

(2,100)

Proposed for separate transmittal, other than pay increase supplemental.




5,000

Provides increases for research grants, training of health personnel,
and program to improve the health of domestic migrant
agricultural workers and their families. Legislation will be
6,000
proposed to authorize private, guaranteed, loans for students in
health professions and nursing schools, as a substitute for the
(-2,100)
current direct loan program.
-4,841

3

to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

I

1966

1967
estimate

increase or
decrease(—)

o

Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
W

Community Health—Continued

d

General and special fund*—Continued

activi- NOA
651 Exp.

28,106

40,470
41,000

44,230
44,000

3 ,760
3,000

Increase is primarily for expanded research and training, and for
eradication of the Aedes Aegypti mosquito.

651 NOA
Exp.

10,932
9,464

15,661
15,000

20,605
18,000

4 ,944
3.000

Control of venereal diseases.__651 NOA
Exp.

10,105
10,363

10,387
9,800

10,594
9,800

207

Dental services and resources.651 NOA
Exp.

7,228
6,081

8,382
7.500

9,196
8,000

o

Increase is for project grants to aid areas of high TB incidence.

Communicable
ties

disease

Control of tuberculosis

29,974

Medical care services

651 NOA
Exp.
Limitation payable from trust
funds.

10,389
7,500
(3,512)

Nursing services and resources.651 NOA
Exp.

21,660
13.967

19,575
17,500

25,634
24,000

Hospital construction activities NOA
651 Exp.

266,907
202,750

303,294
215,000

313,544
240,000




814

500

Estimate continues renewed effort to control venereal disease.
Increase is for training grants, 7 fellowships for research and
further development of an epidemiological training program.

10 ,389 Estimate is for aid to States and communities in developing
home health services to implement Medicare. First-year
7,500
funds are included in "Community health practice and re(3 .512)
search."

6,059
6 ,500

Increase provides for expansion of nurse traineeship program
and for the support of hospital schools of nursing.

10,250 The estimate provides for an increase of $15 million (to $35

25,000

million) for modernization of hospitals, offset by a decrease of
$5 million (to $135 million) for new general hospitals. Programs for other construction, project planning, and technical
services will be maintained at substantially the 1966 level.

3
CO
OS

Construction of health educational NOA
facilities
651 Exp.

110,782
10,452

90,599
25,000

160,794
45,000

70,195
20,000

Increase anticipates about 50% Federal participation in an
expanded program of construction of additional teaching
facilities.

George Washington Hospital con- Exp.
struction
651

768

1,607

15
2

-1,482

(Funds were appropriated in 1964, which should be fully expended
by 1967.)

Construction of mental health Exp.
facilities, Alaska
651

50

Total, community health

NOA

548,612

Exp.

362.691

(Construction completed in 1964.)
662,957
A

461,507
A

790,633 1
-20,900
558,825 |
-20,900

106,776
76,418

Environmental Health
Environmental health sciences_651 NOA
Exp.

9,380
4,558

15,972
10,000

24,312
15,000

8,340
5,000

Expands research and training grants programs including university institutes. Increases number of community studies to
determine health effects of pesticides and provides staffing for
new programs at National Environmental Health Sciences
Center.

.651 NOA
Exp.

20,995
16,312

26,622
22,000

35,577
28,000

8,955
6,000

9,170
8,253

13,839
11,300

21,971
16.500

8,132
5,200

Increased grants and direct operations continue expansion of
solid waste disposal research, training, and planning activities.
Increases environmental engineering and urban health planning
activities.

Occupational helath

651 NOA
Exp.

5,194
4,327

5,837
5,000

6,345
5,700

508
700

Increases research on work-related health hazards such as respiratory diseases of coal miners.

Radiological health

651 NOA
Exp.

19,720
18,679

20,928
19,000

20,404
18,500

-524
-500

Decrease because of nonrecurring expense for equipment offsets
increase to improve the efficiency of medical and dental X-rays.

o

Increases training grants and research on the health effects and
control of sulfur compounds and other pollutants. Steps up
enforcement activities, including testing of emissions from
automobiles, and technical assistance.

Environmental engineering and NOA
sanitation
651 Exp.

3
O

Air pollution _

A

Proposed for separate transmittal, other than pay increase supplemental.




to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

1966

1967

Increase or
decrease ( - )

Explanation of NOA requests

to
to

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
Environmental Health—Continued
General and special funds—Continued
Environmental health activities Exp.
651

10

Total, environmental health_ _ NOA
Exp.

64,459
52,138

83,198
67,307

108,609
83,700

25,411
16,393

55.064

58,199
M53
B
669
C
487
57,857
A
143

61,643

2,135

60,990
A
10

3,000

7,435
A
60
B
128
c
30
7,440
A 60

8,030

377

7,900

400

73,448

5,907

72,500

5,800

(Activities now appear in other accounts.)

Medical Services
Hospitals and medical care

651 NOA

Exp.
Foreign quarantine activities

54,481

651 NOA

7,009

Exp.
Indian health activities




6,919

651 NOA

62,940

66,172
A
371
B
730

62,208

66,329
A
371

C

Exp.

268

Supplemental provides for wage board pay increases. The 1967
estimate provides for staffing increases to improve patient care
and expand professional training.

Supplemental is for wage board pay increases. The 1967 estimate expands oversea visa examination to 5 new locations.
Operating costs of visa examination are offset by fees deposited
in the general fund of the Treasury.

Supplemental provides for wage board pay increases. Increases
in 1967 permit improved hospital staffing, expansion of field
health activities, higher number of patients in contract facilities
and greater equipment replacement.

w
d

s

Construction of Indian health NOA
facilities
651 Exp.
Total, medical services

8,835
9,165

NOA

133,848

Exp.

14,096
8,000

132,773

145,902 1
A
584
B
1,527
C
785
139,626
A
574

14,422
14,000

326
6,000

157,543

The 1967 estimate includes planning of 4 hospitals, and construction of 1 hospital, 37 sanitation projects and other miscellaneous
health projects.

8,745

155,390
A
10

i

15,200

National Institutes of Health
General research and services.651 NOA
Exp.

60,467
86,900

National Institute of General Med- NOA
ical Sciences
651 Exp.

67,821
77,246

7,354
-9,654

Increase initiates a cooperative medical research program with
Japan and expands laboratory animals resources program.

127,186
68,952

164,190
124,532

137,175
77,342

9,989
8,390

Increase will emphasize special research in anesthesiology, diagnostic radiology, surgery, and biomedical engineering.

651 NOA
Exp.

4,969
4,335

6,806
6,410

7,905
7,729

1,099
1,319

Increase is for expansion of studies of tumor-producing factors in
vaccines and purchase of additional equipment.

National Institute of Child Health NOA
and Human Development _. 651 Exp.

42,696
27,797

55,023
46,637

61,448
58,444

6,425
11,807

The increase is principally for expansion of research grants in
infant mortality and morbidity, reproduction, and mental retardation.

163,706

163,957

251

Increase is for expansion of research in radiation therapy and
chemical causation of cancer.

127,241

147,118

19,877

Biologies standards

i

a

National Cancer Institute _ _ _ _ 651 NOA
Reappropriation
NOA
Exp.

138,970
143
113,814

National Institute
Health

Mental NOA
651 Exp.

188,273
149,262

232,650
179,369

253,115
195,324

20,465
15,955

The increase is primarily for grants for staffing of community
mental health centers and funding continuing programs at a
slightly higher level.

Construction of community men- NOA
tal health centers
651 Exp.

35,000

50,000
1,600

50,000
24,957

23,357

Construction assistance will be provided to community mental
health centers for a comprehensive range of services.

A
B
c

of

Proposed for separate trans mitt al, other than pay increase supplemental.
Proposed for separate transmittal, civilian pay increase supplemental.
Proposed for separate transmittal, military pay increase supplemental.




to
00

to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

1967

Increase or
decrease(—)

Crc

Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued

3

PUBLIC HEALTH SERVICE—Continued

w

National Institutes of Health—Continued
General and special funds—Continued
National Heart Institute
651 NOA
Reappropriation
NOA
Ex P .

141,459

148,407

6,948

132,559

146,592

14,033

Increase will support more research grants and an expansion of
research in the metabolism of fats and in the study of enzymes
and compounds in an oxygen-free atmosphere.

23,677
21,520

24,884
24,174

1,207
2,654

Increase will provide for expansion of activities in periodontal
diseases and germ-free research.

NOA
Exp.

123,200
105,609

129,908
119,606

6,708
13,997

Increase permits continued development of an improved artificial
kidney, expansion of direct research, and grant programs.

National Institute of Allergy and NOA
Infectious Diseases
651 Exp.

77,986
72,787

85,702
83,595

7,716
10,808

Increase provides for expansion of studies in immunology, virology, tropical medicine, and vaccine development.

National Institute of Neurological NOA
Diseases and Blindness
651 Exp.

101,144
93,751

106,418
105,817

5,274
12,066

Increase in grants and direct operations will strengthen programs
of epilepsy, head injury, glaucoma, stroke, and deafness.

25,000
5,000

45,024
35,024

20,024
30,024

The increase is for increasing the number of grants for planning
and operation of pilot projects for regional medical programs.

56,000
38,234

21,000
41,756

-35,000
3,522

Mental retardation facilities will be funded at prior year level;
health research facility construction funds will emphasize
construction of facilities at new or expanding medical schools.

National Institute of Dental Re- NOA
search
651 Exp.
National Institute of Arthritis and
Metabolic Diseases
651

Regional medical programs

651 NOA
Exp.

Grants for construction of health NOA
research facilities
651 Exp.




58,000
34,312

s

tr1

as

(The program is being continued in the appropriation for the
National Cancer Institute.)

651 NOA
Exp.

10.000
220

Construction of mental health- Exp.
neurology research facility.-651

20

Grants for cancer research facilities Ex P .
651

681

Total, National Institutes of NOA
Exp.
Health.

1,059,820
779.787

1,244,304
1.000,000

1,302,764
1,150,000

58,460
150,000

NOA
Scientific activities overseas. _.651 Exp.

1,000
3.939

2,000
5,000

19,217
12,000

14,217
7,000

Supports oversea scientific research through the use of excess
foreign currency.

NOA
651 Exp.

6,304

7,230
7,200

9,312
8,100

2,082

Provides for an increased health records statistics program and
for the purchase of a computer.

19,231

3.953

5,509 |
M,175
4,600
A
1,400

Retired pay of commissioned NOA
officers (indefinite)
651 Exp.

7,066
6.976

Office of the Surgeon General. NOA
salaries and expenses
651 Exp.

6,214
5,863

Emergency health activities. .059 NOA
Exp.

8,875
12.631

Special cancer research

National health statistics

National Library of Medicine.651

NOA
Exp.

Proposed health legislation.. .651 NOA
Exp.
A

5.896
3,958

8.255

218

-8,037

3.111

5,058

1,947

2,065

-2,065

900

(Expenditures are payments of prior obligations. Completion is
scheduled for December 1967.)
(Expenditures are payments of prior obligations.)

8,225
2,775 1

5,000

1966 supplemental implements Medical Library Assistance Act.
1967 increase provides initial funding for construction of new
libraries and further increases for research, training, and
operating grants as authorized by the new act.

8,020
8,000

8,977
9,000

957
1,000

Retired officers will increase from 607 to 671, medical care of
dependents of commissioned officers will also increase.

6,858
6,800

8,207
7.200

1,349
400

Increases the analytical staff and provides for a facilities planning
and construction service.

1

10,430

Reorients program toward greater use of existing community
facilities and emphasizes adequate stocking of local hospitals.
The 1966 program was financed from prior year funds.

3

10,000

10,430
10.000
41,000

41,000
23,000

Proposed legislation is for increased support of health personnel
training and planning and research for health care services and
facilities.

A

A

A

23.000

9,547

Proposed for separate trans mitt al, other than pay increase supplemental.




to
Of

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965

Account and functional code

Increase or
decrease ( - )

1967

1966

Explanation of NOA requests

D E P A R T M E N T OF HEALTH, EDUCATION, AND WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
Public enterprise funds:
Operation of commissaries, nar- Exp. j
cotic hospitals
651
Intragovemmental funds:
Bureau of State Services manage- Exp.
ment fund
651
iNational Institutes
management fund

of Health Exp.
651

-15

15

cd

d

Q
S3

4

-1,293

651 Exp.

-221

62

-43

-105

Working capital fund, narcotic Exp.
hospitals
651

17

-7

-1

6

General research support grants Exp.
651

-28,897

Ser vice and supply fund

(Advances and payments in 1966 and 1967 are expected to be
equal.)

Exp.

-544

707

Total, Public Health Service. NOA

1,862,668

2,177,955
A
4,759
B1,527
C
785
1,735,817

Advances and reimbursements.651




Exp.

1,352,238

>

407

-300

2,453,202 1
A
20,100

288,276

2,025,803 |
M.885

292,897

o
OS

FEDERAL WATER POLLUTION
CONTROL ADMINISTRATION
General and special funds:

Buildings and facilities

651

4,624
10,000

NOA
Exp.

4,624
10,000

Increase provides for demonstration of control of acid mine drainage at 6 sites and continued construction and equipping of
regional water pollution control laboratories previously financed
by Public Health Service.

Water supply and water pollution NOA
control
651 Exp.

35,123
31,135

45,084
41,000

55,439
50,000

10,355
9,000

Accelerates program of comprehensive river basin planning for
pollution control, steps up enforcement, abatement, and technical assistance activities. Increases research on advanced
waste treatment and provides additional staffing for water
quality standards laboratories.

Grants for waste treatment works NOA
construction and sewer overflow Exp.
control
651

93,000
69,755

141,000
80,000

173,000
98,000

32,000
18,000

Provides full authorized amount for pollution control plants and
for research and demonstration on the problem of combined

A
74,100
A

23,500

74,100
23,500

Provides for initiation of "Clean River" demonstration projects in
selected river basins, strengthened enforcement procedures, and
demonstration of advanced waste treatment techniques.

100

288

Proposed pollution control legisla- NOA
tion
.65! Exp.
Inter govern mental funds:

Advances and reimbursements.^1 Exp.
Total.

NOA
Exp.

-66

-188

128,123

186,084

100,824

233,063
74,100
158,100
A
23,500

A

120,812

121,079

[

i
f

I

60,788

SAINT ELIZABETHS HOSPITAL
General and special funds:

Salaries and expenses (indefinite) NOA
651

9,620

Exp.

9,309

A
B
c

9,595
A
318
B
367
9,482 1
A
318

I

8,078

-2,202

7,500

-2,300

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
a

Supplemental provides for wage board increase. The decrease in
1967 results from an anticipated increase in reimbursements
of $2.3 million for care of patients of the District of Columbia.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Increase or

1967

1966

1965

Account and functional code

Explanation of NOA requests

as

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
SAINT ELIZABETHS HOSPITAL—Con.
General and special funds—Continued
Buildings and facilities
651 NOA
Exp.

2,032
720

1,977
3,000

2,138
3,000

Exp.

-70

23

23

Total, Saint Elizabeths Hos- NOA
pital.

11,652

161

Intragovernmental funds:
Advances and reimbursements-651

Exp.

9,959

11,572 )
A 318
B
367
12,505 1
A318

The 1967 estimate provides for planning funds for a new patient
security building and modernization of an existing patient
building, and other miscellaneous improvements.

td

d

10,216

-2,041

10,523

-2,300

SOCIAL SECURITY ADMINISTRATION
Trust funds:
Limitation on salaries and expenses.
Limitation on construction
General and special funds:
International Social Security Asso- Exp.
ciation meeting
659
Payment to trust funds for health NOA
insurance for the aged
651 Exp.




(331,626)
(5,750)

(480,304) 1
B
(8,037)

(587,438)

(99,097) Provides for a 3% increase in workload, and for increased costs of
administration of the health insurance program.

(15,048)

(26,250)

(11,202) Provides for construction of additional headquarters space and 30
district offices.
Costs of meeting held in September 1964 have been liquidated.

82
A 367,800
A25.800

832,947
832,947

465,147
807,147

Supplemental covers reimbursement for administrative expense
applicable to the uninsured aged and provides a contingency
reserve, should expenditures be higher than currently estimated.
The 1967 estimate provides Federal contribution to the hospital
insurance trust fund to cover costs incurred for protection provided to the aged who are not insured. Also includes Federal
payment to match $3 monthly premiums paid by enrollees
in the supplementary medical insurance program.

CO
OS

Payment for
credits..

military
.

service NOA
659 Exp.

Supplemental in 1966 and estimate for 1967 provide first 2 of
50 annual installments to liquidate the Government's obligation
to the old-age, survivors, disability and hospital insurance
funds for added costs resulting from past military service.

A 105,000
A 105,000

Public enterprise funds:
Operating fund, Bureau of Federal Exp.
Credit Unions—
659

-98

-50

20

937,947
937,897

465,147
807,167

1

299,500

-78,100

|

288,800

-75,305

) 3,446,900

221,500

-4

Total. Social Security Ad- NOA
ministration.
Exp.

-70

-175

Intragovernmental funds:
Advances and reimbursements _653 Exp.

105,000
105,000

A

472,800
-70 }
130,800

A

(The chartering, supervision, and examination of Federal Credit
Unions is financed by fees for services performed.)

WELFARE ADMINISTRATION
General and special funds:
Grants to States for public assistance:
(Medical assistance for the NOA
aged)
_._651
Exp.

290,429
272,250

653 NOA

2,898,471

Exp.

(Other)

2,787,248

Total, grants to States for NOA
public assistance
Exp.
A
B

3,188,900
3,059,498

347,200
A
30,400
333,705
A 30.400
2,874,800
A 350,600
2.890,195
A350.600

|

3,306,200

3,222,000 ) 3,746,400
A 381,000
3,223,900 1 3,595,000
A 381,000

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




65,405

Supplemental in 1966 is needed to complete 1965 requirements
and to meet costs indicated by program trends and estimates
submitted by the States which cannot be met from presently
appropriated funds. Increase in 1967 will finance a modest
increase in number of recipients, higher monthly cash payments, and better medical care particularly for families with
dependent children. These increases more than offset the
savings resulting from initiation in 1967 of the health insurance
programs. Total expenditures are lower than NOA due to
change in scheduling payments to the States.

o
o

1
3

143,400
-9,900

to
Or
CO

to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1966

Increase or
decrease ( - )

1967

Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued

3

WELFARE ADMINISTRATION-Con.
General and special funds—Continued
Assistance for repatriated United NOA
States nationals
653 Exp.

373
346

452
432

460
450

8
18

Provides assistance to mentally ill and other indigent repatriates.

Bureau of Family Services, sal- NOA
aries and expenses
653 Exp.

5,514

5,269

6,927
6,700

8.295
8,000

1,368
1,300

The increase is for additional Federal staff to improve State administration particularly in dependency reducing efforts and
in improving quality of medical care.

Grants for maternal and child wel- NOA
fare ___ _ __
651 Exp.

127,830
109,796

187,000
169,000

228,900
210,000

41,900
41,000

Increase expands maternal and child health, crippled children
and child welfare programs; doubles special projects providing
comprehensive medical diagnostic and treatment services to
school age and preschool children and initiates grants to train
professional health personnel working with handicapped
children.

Children's Bureau, salaries and NOA
expenses
651 Exp.

4,398
4,298

4,825
4,700

5,331
5,200

506
500

The increase strengthens consultative services and direction of
special comprehensive health programs for children.

Juvenile delinquency and youth NOA
offenses
659 Exp.

11,500
9,892

6,750
8,000

8,207
6,600

1,457
-1,400

The estimate initiates 13 new demonstration projects, continues
to support the special project for the Washington metropolitan
area, and 15 existing projects, and will train 10,000 individuals (2,000 more than in 1966) who will work to prevent
or control juvenile delinquency.

Cooperative research or demon- NOA
stration projects
653 Exp.

1,700
1,302

1,882
1,500

3,150
2,300

1,268
800

The estimate supports 54 (49 in 1966) grantee submitted research
projects and initiates a program of directed research all aimed
primarily at reducing dependency.




d

s
GO

o

CO

Research and training (special NOA
foreign currency program)..651 Exp.

420

1,200
700

2,000
1,000

800
300

Excess foreign currencies will be used to undertake studies in
maternal and child health and in social welfare programs in 10
foreign countries.

Office of the Commissioner, sal- NOA
aries and expenses
653 Exp.

1,104
914

1,292
1,200

1,589
1,500

297
300

Increase will strengthen coordination of welfare programs and
provide additional resources for research and appraisal.

Assistance to refugees in the NOA
United States
653
NOA
Reappropriation
Exp.

32,211

51,000

8,400

46,000

8,500

Increase due to financial assistance, education, health services and
resettlement costs as number of Cuban refugees since October
1965 grows from 36,000 on June 30, 1966, to 88,000 on June 30,
1967.

3,474,928 1 4,055,332
A
381,000
3,453,632 I 3,876,050
A
381.000

199,404

I

42,600

7,789
32,328
37,500

Intragovernmental funds:

Advances and reimbursements.653 Exp.
Total, Welfare Administra- NOA
tion.
Exp.

1
3,381,319
3,224,064

41,418
O

ADMINISTRATION ON AGING

a

General and special funds:

Salaries and expenses..

659 NOA

587
572

7,500
4,750

10,300
8,500

2,800
3,750

865
865

1,000
1,000

1,028
1,028

28
28

420
352

491
335

71
-17

Exp.

The increase is for additional grants to States, and additional
project grants to improve services for the aged.

21

SPECIAL INSTITUTIONS

3

American Printing House for the Blind
Education of the blind

704 NOA
Exp.
National Technical Institute for the Deaf

National Technical Institute for NOA
the Deaf_
704 Exp.
A

Proposed (or separate transmittal, other than pay increase supplemental.




Increase reflects larger school enrollment of blind children.

Provides for planning of residential and training facilities of a
technical institute for the deaf authorized by Public Law 89-36.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965

DEPARTMENT <

Increase or

1967

1966

Explanation of NOA requests

HEALTH, EDUCATION, AND iWELFARE—Continued

SPECIAL INSTITUTIONS-Continued
Freedmen's Hospital

General and special funds—Continued
Salaries and expenses
651 NOA
Exp.

w

4,038
3,929

4,624
4,500

5,193
4,900

569
400

Increase provides for employee terminal leave pay when hospital
is transferred to Howard University by June 30, 1967, and
increased staffing for improved patient care, partially offset
by increased reimbursements from pay patients.

1,926

2,277 J
A
24
2.271 1
A 24

2,485

184

2.477

182

Supplemental will provide nonfaculty pay increases similar to
recent Federal pay increases. Increase in 1967 is for additional
faculty and higher operating costs which will accompany an
estimated 9% increase in enrollment in 1967.

50
500

-334
-750

2,535

-150

J

2.977

-568

10,982 1
A
216
10.784 1
A
216

13,344

2,146

13,000

2.000

d

Gallaudet College

Salaries and expenses.

702 NOA
Exp.

Construction

_.

Total, Gallaudet College

1.854

702 NOA
Exp.

367
2.502

384
1.250

NOA

2,293

2,661 1

Provides for repairs and renovations in existing structures.

A 9A

Exp.

4.356

3,521
A 24

Howard University

Salaries and expenses




702 NOA
Exp.

9,843
10.309

Provides for expanded enrollment, improvement of health professions program, and for faculty salaries comparable to similar
institutions. Supplemental will provide nonfaculty increases
similar to recent Federal pay increases.

2
CO

Construction

702 NOA
Exp.

Total, Howard University _ _ _ NOA

1,810
1,309
11,653

Exp.

NOA

18,849

Exp.

Total, special institutions. _ _.

11,618

20,767

3,342
4,600

422
495

13,902 |
A
216
14,889 1
^216

16,686
17,600

2,495

22,607 1
A
240
24,262 1
A 240

25,933

3,086

26,840

Provides for construction of university student and faculty center
and for other minor projects.

2,568

2,338

2,920
4,105

GENERAL ADMINISTRATION
AND OTHER
Salaries and expenses, Office of the NOA
Secretary
659 Exp.
Limitation payable from old-age
and survivors insurance trust
fund.

fel
3,281
3,253
(479)

4,983
4,960
(646)

3,681
3,353
(510)

Salaries and expenses, Office of NOA
Audit
659 Exp.
Limitation payable from old-age
and survivors insurance trust
fund.

3,789
3,600
(483) 1
B
(18)

4,477
4,400
(678)

o
o

1,772 |
1,980
A'27
3,864
1,900
1,750
A
M
26
(1,340)
(1,780)
(1,578)
A
(32)
B(36)
A
Proposed for separate transmittal, other than pay increase supplemental.
38
Proposed for separate transmittal, civilian pay increase supplemental.

Salaries and expenses, Office of NOA
Field Administration
659
Limitation payable from old-age Exp.
and survivors insurance trust
fund and Bureau of Federal
Credit Unions operating fund.




1,194 The increase provides additional staff to enable the Secretary's
office to deal more effectively with increasingly more complex
1,360
program responsibilities.
(145)

796 The increase provides additional staff for the increased number
of audits required to be made by this centralized departmental
1,047
unit.
(168)

3,939

181

i

IH

Supplemental is for State merit systems work. The increase in
regional office management services is to meet increased work
loads.

(134)

OO

to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1967

1966

Increase or

M

Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued

d
o
ft)

GENERAL ADMINISTRATION
AND OTHER—Continued
General and special funds—Contiilued
Surplus property utilization. __659
NOA
Exp.
Salaries and expenses, Office of the NOA
General Counsel
659 Exp.
Limitation payable from old-age
and survivors insurance trust
fund and Food and Drug Administration revolving fund.
Educational television facilities. __ NOA
704 Exp.
[ntragovemmental funds:
Working capital fund




659 Exp.

983

1,053
B
20
1,043

1,268
1,105
(907)

1,615
1,588
(1.115)

1,001

i

1,093

20

1,050

7

1,803
1,782
(1.335)

Provides staff to distribute surplus real and personal property to
State agencies for educational, public health, and civil defense
purposes.

2
8

188 Increase provides additional legal staff to meet new program
responsibilities.
194
(220)
OS

13,000
3,130

8,826
8,000

3,304
8,000

-5,522

-273

-120

-102

18

Amount proposed for 1967 is remaining grant authorization.

Advances and reimbursements.659 Exp.

-63

Total, general administration NOA
and other.

-20
20,736 ]
A
27
B
20 j
19,194

22,488
11,997

Exp.

20

A

21,990
A

26

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

7,130,903

ExP.

5,740,i61

A

9,244,228
1,110,594
B
1,914
C785
7,100,366
A
559,428
B
1,848
C785

-3,143

17,640

1

2,771

1

1

11,653,521
A
60,013

I 1,356,013

10,075,715
A
115339

]

I

w
2,528,673

3

B

66 j

!
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

o
o

OFFICE OF THE SECRETARY
General and special funds:

Salaries and expenses

„

553 NOA
Exp.

5,854
5,854

Office building equipment and NOA
furnishings
553 Exp.
Administrative expenses, public NOA
works acceleration-__»_.._ _507 Exp.
Urban studies and housing re- NOA
search
.
551 Exp.
A
B
c

3,931
3.931

Increase is primarily for administrative expenses for the first full
year of the new water and sewer, neighborhood facility, and
advance land acquisition grant programs. The account receives
$34 million in reimbursements from other accounts.

575
50

Estimate is for new equipment and furnishings for the headquarters
office building being constructed in Washington.

-500
-500

500
500
397
444

750
700

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.




9,785
9.785

575
50

16,385
16,150

750
750

50

All work under this program will be completed in 1966.
Estimate continues the statistical series on housing markets and
analytical surveys and studies on housing and urban problems.

to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

Increase or
decrease(—)

1967

Explanation of NOA requests

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued
OFFICE OF THE SECRETARY-Con.
General and special funds—Continued

3,000
1,500

Study of housing and building NOA
codes, zoning, tax policy, and Exp.
development standards
551
Natural disaster study

1,000
600

551 NOA
Exp.

600
425

3,000
1,500

Estimate is for a study of how these Federal, State, and local
policies might be changed to help meet housing and urban
development needs.

-40C* Estimate is for the study of methods for providing financial
assistance to those suffering property losses in natural disasters.
-175

5,150
2,150

5,150
2,150

35,000
22,000

8,163
2,000

Increase expands comprehensive planning assistance to States,
counties, small cities, and metropolitan and regional areas.

Grants for basic water and sewer NOA
facilities
553 Exp.

100,000
1,250

100,000
50,750

49,500

Grants are for 50% of the cost of local water and sewer projects
following areawide comprehensive development plans.

Grants to aid advance acquisition NOA
of land
553 Exp.

5,000

5,000
360

360

Grants are made to localities to pay interest costs on 5-year loans
for acquisition of land to be used for future public facilities.

o

The estimate initiates a program of grants to States for training
(and related research) in community development skills.

26,837
20,000

w
d

Community development training NOA
programs
__
553 Exp.
Urban planning grants

_

_553 NOA
Exp.

Open space land and urban beauti- NOA
ncation
553
Contract authorization .
NOA
Liquidation of contract authorization.
Exp.
Grants for neighborhood facilities NOA
553 Exp.




13,675
16,563

935 1 -234,540

273

475

25,000
(14,727)
6,212

235,000
(49,000)
18,000

(85,000)
30,000

12,000
1,200

25,000
12,500

Increased appropriation is for more staff to handle a higher level of
program activity. Contract authorization in 1966 will cover
$85 million of grant approvals for the acquisition or creation of
open space land and for the support of local urban beautification
(36,000)
programs.
12,000
13,000
11,300

The increase will support construction of more facilities to house
social, health, and recreational services in low income neighborhoods.

CO

a

Low income housing demonstra- NOA
tion programs
_ 551
Contract authorization
_ NOA
Liquidation of contract authorization.
Exp.
Rent supplement program

551

City demonstration grants

47
5,000

47

75 j]

5,000
(1,228)
2,000

-4,972

Existing contract authorization will allow continuation of grants
for testing and demonstration of new and improved methods
of housing low income families.

553 NOA
Exp.

(2,500)
2,000

0,272)

3,000
3,000

(1,228)
1,330

3,000
3,000

Estimate is for initial rent supplement payments on behalf of
tenants occupying assisted housing. Approval of $30 million
as the maximum annual payments that may be provided for in
rent supplement contracts will be requested for 1966, to be
increased by $35 million in 1967, so as to assist 108,000 units.

12,000
5,000

12,000
5,000

Legislation is being proposed to authorize aid to qualifying cities
in order to demonstrate how all resources can be marshaled to
restore large areas for residential use. Estimate is for planning
funds for cities which seek to qualify.

NOA
Exp.

A

A

Public enterprise funds:

College housing loans (authorization to spend debt receipts) :
Permanent
702 NOA 300,000
Current
NOA
"220~744"
Exp.
Limitation on administrative expenses.
Public facility loans

553 Exp.

Limitation on administrative expenses.
Public works planning fund___553 NOA
Exp.
Revolving fund (liquidating pro- Exp.
grams)
551
Limitation on administrative
expenses.
A

300,000
240,266

(1,975)

(1,975)

38,205

22,227

(1,270)

(1,270)

14,000

300,000
300,000
289,305
801,000
(2,035)
27,635
77,700
0.175)

15,000

-751,961

—72,292
I
(—95)|

7,994

-985

-15,000
1,996

-1.000

7,852

2,742

-3,742
010)

(114)

(HO)

loans under proposed legislation will permit canceling $300
million of NOA otherwise becoming available while continuing
the 1966 program level of $300 million of loan reservations.

o
o

(60)

9,990

Proposed for separate transmittal, other than pay increase supplemental.




-300,000 Receipts from sales of participations in pools of college housing

(Increased disbursements under prior year approvals will be more
than offset by sales of participations in pools of loans under proposed legislation.)
Repayments of previous advances will fund $10 million of approvals without additional NOA.
(This fund liquidates assets acquired under expired programs.)

3

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)— C o n t i n u e d
1965
enacted

Account and functional code

1966
estimate

1967
estimate

Increase or
decrease(—)

DEPARTMENT OF HOUSING AND URBAN

to

Explanation of NOA requests

DEVELOPMENT—Continued

OFFICE OF THE SECRETARY—Con.
Public enterprise funds—Continued
Urban renewal programs
553 NOA
Contract authorization:
Current.
NOA
Permanent
NOA
Liquidation of contract authorization.
Exp.

13,745
750,000

15,625

51,880

675,000
725,000

(230,000)
324,352

,100,500)
362,008

(725,000)
412,507

Contract authorization for 1966, 1967, 1968, and 1969 was provided in Housing and Urban Development Act of 1965.
Liquidating appropriation for 1967 was provided in Supplemental Appropriation Act, 1966.

td

d

-375,500)
50.499

551 NOA
Exp.

10,180

41,363

1,600

-39,763

180

2,364

17,133

14,769

Community disposal operations Exp.
552

89

-1,519

-10,004

-8,485

(Sales of property and mortgages will exceed costs connected
with selling properties at Los Alamos, N. Mex.)

Urban mass transportation fund NOA
553
Permanent
NOA
Exp.

65,300

135,455

640

-4,815

11,068

"~38~000

130,000
68,020

30,020

Appropriation for grants in 1967 to improve urban mass transportation systems was included in 1966 appropriation act.
No loan activity is estimated for 1967. Budget also proposes
grant appropriation of $150 million for 1968, including $95
million to carry out authorizing legislation to be proposed.

Housing for the elderly or handi- NOA
g
y
df
E
capped fundd 5 5 1
551 Exp.
Limitation on administrative
and nonadministrative expenses.

25,000

50,000
53,576

Total, Office of the Secretary _ NOA

1,225,258

1,623,026

1,441,735
-288,000

469,291

Exp.

683,563

771,278

1,012,616
-873,700

632,362

Rehabilitation loan fund




41,361

(950)

(1,075)

80,000
63,760
(U215)

Appropriation in 1966 will fund $35 million of loan approvals in
1967 to help rehabilitate properties in urban renewal areas.

30,000 Increase will permit continuation of 1966 program level of $85
10,184
million in loan approvals for rental housing for elderly or
(140)
handicapped persons with low or moderate incomes. Program

in 1966 was partly financed from prior year appropriations.

OS

FEDERAL NATIONAL MORTGAGE
ASSOCIATION
Loans to secondary market opera- Exp.
tions fund
551
Special assistance functions (authorization to spend debt
receipts):
551
Current
NOA
Permanent
NOA
Exp.
Participation sales

-42,460

75.000

-375,849

Government mortgage liquidation
fund:
(Aids to private housing) 551 Exp.

450,000
69,000
A
A

-294.400

-16,618

(Additional capital needed as the basis for financing new mortgage
purchases in 1966 and 1967 is provided by Treasury purchase
of preferred stock.)
Program in 1967 of $539 million of mortgage purchase reservations and commitments will be primarily for below-marketinterest-rate mortgages on rental housing for moderate income
families. Expenditure rise reflects greater purchases of these
mortgages and fewer sales of mortgages and participations in
mortgages under existing legislation. (See "Participation
sales" below.)

427,000

-450,000
—383,265

-450,000
-383,265

-358,000

-105,412

-39,180

350,000

100,000

551 NOA
Exp.

Management and liquidating func- Exp.
tions
551

35.820

Legislation is proposed to facilitate sales of participations in pools
of mortgages by providing for covering losses to the special as| sistance and management and liquidating functions funds
resulting from inclusion of low-interest-rate mortgages in the
pools. It will also cancel the unneeded NOA becoming available for Special assistance functions.

-135,500

158,900

(Increase in expenditures reflects lower sales of mortgages and
participations in pools of mortgages under existing legislation.
See "Participation sales" above.)

-35,300

-535

(This trustee account holds collections on mortgages, loans, and
other obligations in participation pools and distributes principal
and interest payments to certificate holders. Currently certificates are outstanding against pools of FNMA and Veterans
Administration mortgages. Legislation will be proposed for
the pooling of obligations of additional agencies, including units
of this Department, the Farmers Home Administration, the
Office of Education, and the Small Business Administration.)

-51,500

A-16,735

(Veterans readjustment benefits)
...___803
(Advancement of business) _506
(Financing farm and rural housing)
.
352
(Assistance to higher education)
702
(Urban renewal and community facilities)
553
A

Exp.
Exp.
Exp.
Exp.
Exp.

-8,309

-15,700

57,200

A-161,433
A
-51,000

-161,433
-51,000

-72,900

A

-21,525
A

-2,300

Proposed for separate transmittal, other than pay increase supplemental.




-21,525
j
-2,300 i

3
o
Q

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

1967

Increase or
decrease ( - )

to
O

Explanation of NOA requests

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued
FEDERAL NATIONAL MORTGAGE
ASSOCIATION—Continued

Public enterprise funds—Continued
Limitation on administrative expenses.
Total, Federal National Mort- NOA
gage Association.
Exp.

(8,600)

(8,800)
100,000

(9,100)

A

450,000

d
©
3

(300)

-100,000

-450,000

-701,800

-81,680
A-636,258

-16,138

450
450

1,030
1,000

580
550

-115,351

115,744

-107,141

-222,885

(10,085;

(10,330

-548,648

FEDERAL HOUSING ADMINISTRATION
General and special funds:
Administrative expenses, rent sup- NOA
plement program
551 Exp.
Public enterprise funds:
Federal Housing Administration Exp.
fund
551
Limitation on administrative
expenses.
Limitation on nonadministrative expenses.
Total, Federal Housing Ad- NOA
ministration.
Exp.




(10,950)

B

(79,775

(75;
(81,275
B
(1.575;

-115,351

450
116,194

(89,400)
1,030
-106,141

Increase is for additional staff to administer the first full year of
the program, which is financed under "Office of the Secretary."

(Receipts from premiums, fees, and sales of property and mortgages acquired in connection with defaults on insured mortgages will exceed insurance claim payments and other expenses.
Expenditures in 1966 reflect new methods which speeded up
(545)
claim payments. Mortgage insurance outstanding is estimated at $55.7 billion at the end of 1967. Increased applica(6,550)
tions will require increased operating expenses.)

580
-222,335

PUBLIC HOUSING PROGRAMS

I

i
Annual contributions

552 NOA

208,320

Administrative expenses

552 NOA

16,352

Exp.

(16,352)

Limitation on administrative expenses.
Limitation on nonadministrative expenses.

Exp
Total, Department of Hous- NOA
ing and Urban Development.
Exp.

B

260,000

13,000

17,000
B
405
230,336
A20.I0O
(17,000)

20,223

2,818

264,600
A
6,900
(20,223)

21,064

(405)
(1,200)

(1.273)

B

(1.420)|

Total, public housing pro- NOA
grams.

A

230,116

220,000 j
27,000

A

224,672
230,116

1,449,930
249,681

237,000
27,000
B
405
230,336
A
20,1Q0
1,960,476
A
27,000
B
405
415,603
A
20,100
B
405

21,064

2,172,988
A
-738,000

-552,893

1,089,395
~l, 503,058

(Increase will cover inspection of increased construction activity.)

15,818

-849,771

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




(73)

264,600
A
6,900

A

Increase results from heavier workload.

(2,818)

280,223

A

Supplemental in 1966 and increase in 1967 reflect increase in
dwellings eligible for annual contributions from 577,347 in
1965 to 613,161 in 1966 and 647,914 in 1967.

i
O
O

q

to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
id fui.CI.UUU1 code

1965

1966

1967

to
to

Explanation of NOA requests

Increase or
decrease ( - )

DEPARTMENT OF THE INTERIOR
PUBLIC LAND MANAGEMENT
Bureau of Land Management

td

General and special funds:
Management of lands and re- NOA
sources
401

50,296

Exp.

49,734

maintenance NOA
401 Ex P .

Oregon and California grant lands:
Receipt limitation, indefinite NOA

49,034
1,000
B
495
48,388
A 900

48,755

-1,774

47,425 1
A
100

-1,763

Supplemental in 1966 is for fire suppression. In 1967 emphasis
will be placed on the rest-rotation grazing system for the better
management of grazing lands, and on investments to improve
water quality and quantity on public domain lands.

1,100
605

3,150
1,250

2,900
2,030

-250
780

Estimate provides for construction of sanitation and protection
facilities.

10,448

10,625

9,750

-7,195

NOA
Exp.

8,500
8,080

6,320
8,000

8,000

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.
Additional amounts were for emergency repair and reconstruction of flood-damaged roads.

Public lands development roads
and trails:
401
Contract authorization:
Current
NOA
NOA
Permanent
Liquidation of contract auExp.
thorization.

2,000

Range improvements (receipt limi- NOA
tation, indefinite)
401 Exp.

Construction and

Definite




A

D

123 miles of road construction is programed for 1967.

2,000

(2,500)
1,543

2,000
(2,000)
3,007

(2,000)
2,000

1,397
1,270

1,346
1,250

1,448
1,400

-1,007

102
150

A sum usually equal to 33% of grazing revenues is used for range
improvements.

CD

Permanent appropriations:
General fund
Special fund

401 NOA
NOA
Exp.

229
1,434
1,398

21
2
2,094
2,315

267
2,196
2,463

46
102
148

Special fund

402

NOA
Exp.

21,360
21,360

20,940
20,940

22,264
22,264

1,324
1,324

General fund
Special fund

403 NOA
NOA
Exp.

3
47,541
47,355

3
50,447
47,950

1
0
53,308
53,318

7
2,861
5,368

142,898

Revenues from mineral leasing, sale of timber, grazing leases and
permits, and other public domain revenue-producing operations are used in resource programs, or are paid to the States
and counties in various 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 expenses of timber sales, or for State
or county roads, schools, etc. Minerals revenues are largely
paid to States for educational and other uses.

-4,777

Total, Bureau of Land Man- NOA
agement.
Exp.

144,306
131,345

146,180 1
A
1,000
B495 j
133,100
A900

138,900 1
A 100

5,000

o
o

I

S3

Bureau of Indian Affairs

Education and welfare services:
Appropriation
704 NOA
Contract authorization (perma- NOA
nent, indefinite)
704
Liquidation of contract authorization.
Exp.
Resources management

401

NOA
Exp.

A
B
D

8,199

114,196

1,040

104,795 1
B
1,202
1,100

(990)
98,669

(1,040)
105,778

(1,100)
113,307
44,611

1,076

44,105 1
A
86

The increase is primarily to support an additional 3,858 students
in Federal elementary and secondary schools and 805 more
persons in the vocational and on-the-job training program.

(60)
7,529

1,595

96,976

41,421
40,491

1

42,780 )
A 186
» 569
42,496
A 100

J

1,100

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.




w

a
The 1966 supplemental is for firefighting. The increase in 1967
is primarily for maintenance of new schools and for the mutualhelp and low-rent housing program.

to
00

fcO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
!

1966

1965

Account and functional code

1967

Explanation of NOA requests

Increase or
decrease ( - )

DEPARTMENT OF THE INTERIOR—Continued
PUBLIC LAND MANAGEMENT—Con.
Bureau of Indian Affairs—Continued
General and special funds—Continued

Construction

401

NOA
Exp.

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

53,919
53,549

57,164
49,854

35,117
30,296

D

18,000

22,047
19,558

18,000

The 1967 program includes 387 miles of grading and draining and
628 miles of surfacing.

18,000

o

(18,000)
17,618

(17,445)
19.131

(16,754)
16,754

4,520

4,677

54

4,663

78

General administrative expenses __ NOA
409
Exp.

4,498

4,520
B
103
4,585

Menominee educational grants-__ NOA
704 Exp.

88
88

44
44

Payment to Seneca Nation_. .409 NOA
Exp.

-2,377

12,129
12,129

Miscellaneous accounts

409




-44
-44

Administration is continued at the current level.

The 1966 amount is the last of 5 grants to cushion the termination of Federal services to the Menominee Tribe.
A one-time payment was made to the Seneca Nation for improving conditions.

139

Exp.

Claims and treaty obligations NOA
(permanent, indefinite)
409 Exp.

The estimate includes construction of 4 new schools, replacements and additions to 10 existing schools, and construction of
utility and irrigation systems.

195

161

192

174

-139
161
161

Payments are made to various tribes as authorized by laws.
Payments are authorized to meet treaty obligations with certain
Indian tribes.

Other miscellaneous appropria- NOA
tions (permanent, indefinite, Exp.
special funds)
401

6,881
6,846

6,620
6,686

6,620
6,647

-39
—39

I Revenue from irrigation and electric power projects is used to
operate and maintain the projects.

409 NOA
Exp.

4

10
116

10
10

-106

Revenue from mineral deposits is used for acquisition of lands
and for loans to Indians in Oklahoma.

900
179

2,345

409

-1,936

-1

18
0

4

-104

41
0

1,002

Public enterprise funds:

Revolving fund for loans

401

NOA
Exp.

Liquidation of Hoonah housing Exp.
project revolving funds 409

Legislation has been recommended to increase the fund.
(Loans are made to tribes for relending to members.)
(Balances are being used for liquidation.)

w

Intragovernmental funds:

Advances and reimbursements

Exp.
409

Total, Bureau of Indian Af- NOA
fairs.
Exp.

236,073
234,661

-1,002

213,147 1
A 186
B
l,874
212,900
A 100

246,539

31,332

235,914 1
A
86

§

23,000

o
o
>

Bureau of Outdoor Recreation

g

General and special funds:

405 NOA

2,748

Exp.

2,576

3,396
B
68
3,812

16,000
1,254

Advances and reimbursements_405 Exp.

-3
18,748

3,914

102

110,000
73,086

-14,996
8,910

1
2

Total, Bureau of Outdoor NOA
Recreation.
Exp.

446

124,996
64,176

Salaries and expenses

Land and water conservation NOA
(special fund)
405 Exp.

td

J 3,910

Increase accelerates work on review of recreation aspects of
Federal water projects and of other potential recreation areas.
Services to the Recreation Advisory Council are strengthened.
Estimate covers all anticipated receipts, to be used for Federal
acquisition of recreation lands and for assistance to States for
planning, acquisition, and development of recreation areas.

Intragovernmental funds:

A
B
D

3,827

128,392 1
B
68
68,000

-12
113,910

-14,550

77,000

9,000

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
Or

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

code

1966

1967
estimate

Increase or
decrease (—)

Explanation of NOA requests

DEPARTMENT OF THE INTERIOR—Continued
PUBLIC LAND MANAGEMENT-Con.
Office of Territories

General and special funds:
Administration of territories. .910 NOA
Exp.

25,345

14,579

3,937

10,800

Trust Territory of the Pacific NOA
Islands
910
Exp.

17,500
12,695

Claims of inhabitants of Rongelap NOA
Atoll
910 Exp.

950

Internal revenue collections for NOA
Virgin Islands (permanent, in- Exp.
definite, special fund)
910

8,313
8,313

10,513
19,060

-4,066

17,344
B
103

17,494

47

19,195

19,940

Decrease reflects use of prior year funds to finance Guam rehabilitation projects partially offset by increases for Samoan
capital improvements.

d
o
a

745

950
10,406
10,406

8,260

-950

8,000
8,000

-2,406
-2,406

Program will continue at the current level.

50

Payment for claims of Rongelap Atoll inhabitants for radiation
exposure is expected to be completed in 1966.
Payments are made to the Virgin Islands equal to taxes collected
on island products sold in the United States.
to

Public enterprise funds:
Loans to private trading enter- Exp.
prises, Trust Territory of the
Pacific Islands
910

280

Total, Office of Territories. _. NOA

52,108

Exp.

25,226




(This fund was liquidated in 1965 and the assets contributed to
the trust territory.)
42,329
B
103
41,351

36,007

-6,425

47,000

5,649

The Alaska Railroad

Alaska Railroad revolving fund NOA
506 Exp.

1,300
15,025

4,100
14,439

Total, public land manage- NOA
ment.

452,535

534,148 1
M,186
B
2,540
469,790
A 1,000

498,849
A
186

J

73,920

729

72,610

2,860

250

390

140

1

1

-1,000

-1,000

Exp.

410,084

35

-4,100
-14,404

539,354

Funding for earthquake damage completed. Revenues finance
normal costs of operating the railroad.

1,480

j

23,245

MINERAL RESOURCES
Geological Survey
General and special funds:

Surveys, investigations, and research
409

NOA
Exp.

Lead and zinc stabilization pro- Exp.
gram
403
Payments from proceeds, sale of NOA
water, Mineral Leasing Act of
1920, sec. 40 (d) (permanent,
indefinite, special fund)
401

70,384

71,681
1,510
69,750

B

68,081
155
1

Exp.

-27

NOA

70,385

Exp.

68,209

409
Total, Geological Survey

A
B

71,682
l,510
69,000

B

j

73,921
72,000

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




(Payments to small lead and zinc producers to stabilize mining
operations.)
Receipts are appropriated to maintain and develop water wells
on the public domain.

Intragovernmental funds:

Advances and reimbursements

Estimate provides for topographic mapping and geologic investigations to continue at about the current level. Studies of
water problems will be accelerated and an increasing number of
mineral leases will be supervised.

729
3,000

3
O

o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966

Increase or
decrease ( - )

1967

00

Explanation of NOA requests

DEPARTMENT OF THE INTERIOR—Continued
MINERAL RESOURCES-Continued
Bureau of Mines
d
General and special funds:
Conservation and development of NOA
mineral resources
403

31,191

Increases for research in oil shale, air pollution, and for the analytical evaluation of competing mineral resource and research
projects are more than offset by completion of other projects.

31,883
B
500
30,200

31,466

-917

31,200

1,000

9,390

-209

9.088

9,507
B
92
9,100

165

200

3
1

1,469

1,529

1,556

1,428

»22
1,500

1,555

Drainage of anthracite mines. _403 Exp.

442

200

200

(Balance of a 1956 appropriation will be spent in Pennsylvania.)

Appalachian region mining area NOA
restoration
403 Exp.

16,000
1,000

10,566
13,000

10,566 Estimate provides for control of subsidence and minefiresand for
reclamation of strip and surface mined areas
12,000

800

4,335
3,200

2,935 Increase is for the expansion of research to develop uses for
junked automobiles and related solid mineral wastes.
2,400

16,000
25,000

26,000
30,614

10,000 Increase in borrowing from Treasury is to purchase helium which
will be repaid when the helium is sold.
5,614

o

Exp.
Health and safety

652 NOA

30,369

9,536

Exp.
Construction
General
administrative
penses

Solid waste disposal

403 Exp.
ex- NOA
403
Exp.

403 NOA
Exp.

Public enterprise funds:
Helium fund (authorization to NOA
spend debt receipts)
403 Exp.




1,400

14,000
20,425

9,300

Provides for research and educational effort to reduce health and
safety hazards in mining operations. Cost savings and increased productivity account for the decreased estimate.
200

-169

(Estimate provides for final payment on project.)

5 Administration is continued at the current level.

5
5
CO
O3

Intragovernmental funds:

Advances and reimbursements.. Exp.
403

-530

NOA

72,196

Exp.

61,386

60,319
B
614
68,000

403 NOA
Exp.

6,836
3,822

J

7,220
5,800

Total, Bureau of Mines

83,313

22,380

89,100

21,100

8,237
6,800

1,017
1,000

Office of Coal Research
General and special funds:

Salaries and expenses

Increase expands research to develop new methods of mining,
preparing and utilizing coal.

Office of Minerals Exploration
Salaries and expenses

403 NOA
Exp.

850
627

Administration of this program has been transferred to the Geological Survey.

Salaries and expenses

a

403 NOA
Exp.

Total, mineral resources

NOA
Exp.

704
686
150,971
134,728

704 1
16
700

722

139,925 1
B
2,140
143,500

166,193

B

2

Estimate continues program at current level.

700

168,600

j

24,128
25,100

3
o

FISH AND WILDLIFE AND PARKS
Office of the Commissioner of
Fish and Wildlife

B

404 NOA

444

Exp.

Salaries and expenses

443

444
B
8
452

Proposed for separate transmittal. civilian pay increase supplemental.




3

O

Office of Oil and Gas

-452
44

-408

Activities are financed in 1967 by estimates of the Bureaus of
Commercial Fisheries and Sport Fisheries and Wildlife and by
the Office of the Secretary.

3
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967
estimate

Explanation of NOA requests

I Increase or
I decrease ( —)

DEPARTMENT OF THE INTERIOR—Continued
FISH AND WILDLIFE AND PARKS- Con
Bureau of Commercial Fisheries
General and special funds—Continued
Management and investigations of NOA
resources
404

21,227

Exp.

20,736

Management and investigations of NOA
resources (special foreign cur* Exp.
rency program)
404
Construction




Research and translation of foreign fisheries literature projects
are carried on abroad using excess foreign currencies.

300
200

200
200

1,980
7,168

495
3,385

-1,485
-3,783

Projects include a seawall and bridge at Beaufort, N.C., and
production and migration aids for salmon in Oregon, Washington, and Idaho.
Subsidies cover the difference in construction costs between U.S.
and foreign shipyards on 35 vessels in 1966 and 23 in 1967.

2,500

5,000
2,105

3,300

-3,805

483

1.700

2,000

300

4,713
2,500

3,210
3,000

-1,503
500

674
15

739

50

675

718

43

Federal aid for commercial fisher- NOA
ies research and develop- Exp.
ment
404
NOA |

704

Exp.

686

I

i

B

W
d
o
a

21,000

5,913
7,298

Construction of fishing vessels.404 NOA |
Reappropriation
NOA I
Exp.

404

Decrease from the use of balances in the permanent indefinite
account to fund some research programs more than offsets increases for pesticide and oceanographic research.

21,092

300
181

404 NOA
Exp.

General administrative expenses.

21,885
A
55
B
148
20,800
A
55

Program provides for reduced cost-sharing apportionments to
States for commercial fishery research and development.
Estimate continues program at the current level

I3

i

Administration of Pribilof Islands NOA
(indefinite, special fund) _ _ _404
Exp.

2,454
2.441

2,454 1
B
10
2.324

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

5,298
4,990

6,611
5,200

f

2,468

4

2,414

90

5,800
6,956

Public enterprise funds:
Federal ship mortgage insurance Exp.
fund, fishing vessels
404

-38
429

Bureau of Sport Fisheries and Wildlife
General and special funds:
Management and investigations of NOA
resources
404
Exp.
A
B

(Premium and fees are reserved for possible losses. Contingent
liability will be $13 million in 1967.)

90

(Loan program of $1.7 million in 1967 is financed by receipts and
fund capital.)

(309)

O
Q
39,360
38,169

45,722 1
A
55
B
173
40,593 1

J

A

55

35,308
33,311

37,504
39,956

-692

37,304

433

35,282

771

5d

-8,446

1

36,108 1
A
285
B
478
34.226 1
A
285 f

J

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




-33

199

109
(309)

Exp.

Alaska is paid 70% of net proceeds from sales of fur sealskins and
related products from the Pribilof Islands rookeries. In 1966
sales did not exceed expenses.

200

200

-116

-83

Total, Bureau of Commer- NOA
cial Fisheries.

A sum equal to 30% of customs duties onfisheryproducts is appropriated for biological research, technological development, and
general administrative services. The high level of receipts in
1966 is not expected to continue in 1967.

200

964

(309)

-811
1,756

200

964

Payment to Alaska from Pribilof NOA
Islands fund (permanent, indefi- Exp.
nite, special fund)
404

Fisheries loan fund
404 Exp.
Limitation on administrative
expenses.

Part of the proceeds from sales of fur sealskins and other wildlife
products is used in administration of the Pribilof Islands

Program supplemental is for pesticide research and wage board
increases. Increase in 1967 is primarily for operation of new
fish hatcheries and for fish and wildlife research.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1966

.967

Increase or
decrease ( - )

to
00
to

Explanation of NOA requests

DEPARTMENT OF THE INTERIOR—Continued
FISH AND WILDLIFE AND PARKS-Con.
ft
Bureau of Sport Fisheries and Wildlife—Con.
General and special funds—Continued
Construction
404 NOA
Exp.

W

3,169
10,000

Program includes planning for a fish nutrition laboratory, development at 26 wildlife refuges, and construction of a building for
migratory bird studies.

General administrative expenses
NOA
404
Exp.

States are reimbursed up to 75% of the cost of approved fish and
wildlife projects within the Appalachian region.

Migratory bird conservation ac- NOA
count
404
Receipt limitation (permanent, NOA
indefinite).
Exp.

5,000
10.500

Estimate of $6 million to be advanced from general revenues
(to be repaid later). Plus estimated receipts from sale of
Federal duck-hunting stamps are used for the acquisition of migratory waterfowl lands.

Federal aid in fish restoration and NOA
management (receipt limitation, Exp,
permanent, indefinite)
404

6,500
5,000

Assistance to States is provided by appropriations equal to the
10% excise tax on sport fishing equipment.

Federal aid in wildlife restoration NOA
(permanent, indefinite, special Exp.
fund)
404

17,170
15,000

Assistance to States is provided by appropriations equal to the
11 % excise tax on manufacture of firearms and cartridges.

ft
3

Estimate continues program at current level.

Appalachian region fish and wild- NOA
life restoration projects
404 Exp.

d
a
a




2
4
ft

The sum of 25% of revenue from submarginal lands goes to counties in which such lands are located, for schools and roads.

Payments to counties, national NOA
grasslands (permanent, indefi- Exp.
nite, special fund)
404

2
2

2
2

2
2

National wildlife refuge fund (per- NOA
manent, indefinite, special fund) Exp.
404

4,245
1.860

1,886
2,787

2,780
2.700

894
-87

Intragovernmental funds:
Advances and reimbursements.404 Exp.

2
80,839

-17,785

81,000

2,000

36,177

2,465

35,766 1

2,010

27,022

1,619

Total, Bureau of Sport Fish- NOA
eries and Wildlife.

89,025

Exp.

79,498

97,827 |
A
285
B
512
78,715 1
A
285

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.

National Park Service
General and special funds:
Management and protection._405 NOA

30,127

Exp.

29,419

Maintenance and rehabilitation of NOA
physical facilities
405

23,650

Exp.

22,593

A
B

.405 NOA

42,987

Exp.

Construction.

41,393

32,350 1
A
579
B
783
33,245
A
545
24,653 1
A
647
B
103
24,612
A
617
26,177 1
1,338
24.746
A
400

A

A34

27.020 }
•

30

1,821

Supplemental is for wage board pay increases and initial maintenance staff at 9 newly established areas. The 1967 increase
will cover 13 new areas and permit more adequate maintenance
of roads and facilities throughout the Park Service.

j

23,500
30.508 1
A
938

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




A

Supplemental is for fire suppression and initial staffing of newly
established areas. Increase is for full-year operation of 13 new
areas and new facilities to serve an increase of 8 million visitors
to the 230 areas in the system. Additional funds are provided
for the Roosevelt Campobello International Park Commission.

-4,015
6,300

Supplemental in 1966 is for reconstruction of facilities damaged
by hurricane, flood, etc. In 1967 funds are provided to step
up a program for the beautification of the Nation's Capital,
construction of facilities, and acquisition of water rights.

o
o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

1967

Increase or
decrease(—)

Explanation of NOA requests

DEPARTMENT OF THE INTERIOR—Continued

3
w

d

o

FISH AND WILDLIFE AND PARKS—
Continued
National Park Service—Continued

General and special funds—Continued
Parkway and road construction:
Contract authorization:
Current
405
Permanent

NOA
NOA

Liquidation of contract authorization.

Work on 7 parkways will continue and road and trail construction
will include 80 miles of major roads. Road construction in new
areas will be initiated.
(Supplemental is to meet progress payments against existing and
anticipated 1966 obligations.)

Exp.

General administrative expenses
405

NOA

Estimate continues program at current level.

Exp.
Other miscellaneous appropriations (permanent, indefinite,
special fund)
..405




NOA
Exp.

Park visitor fees are used to provide educational facilities to
dependents of park personnel, payment of tax losses to
Wyoming; and for certain other costs.

Intragovernmental funds:

Advances and reimbursements.405 Exp.
Total, National Park Service NOA
Exp.
Total, fish and wildlife anJ NOA
parks.
Exp,

-18

75

15

-60

133,366

119,768
A
2,564
B
943
118,938
A
7,062

123,385

no

125,998
A
1,002

1,000

263,761
A
2,904
B
1,636
238,698
A
7,402

241,728

-26,573

246,998
A
1,002

1,900

130,296
262,195
248,406

WATER AND POWER DEVELOPMENT
Bureau of Reclamation
General and special funds:

NOA
Exp.

11,398
11,717

14,194
13,637

P13,685
13,700

-509
63

Program includes plan formulation and economic studies, engineering research, and atmospheric water research.

NOA

185,605

197,053

-19,053

185,966

190,000

175,000
A
3,000
173,600
A
2,400

-14,000

Finances construction on 30 projects and 16 units of the Missouri
River Basin project estimated to cost $5.4 billion; of these, 4
will be new project starts estimated to cost $1 billion, including
the third powerplant at Grand Coulee Dam, proposed for separate transmittal, which requires authorizing legislation.

Operation and maintenance. __401 NOA
Exp.

39,842
38.046

41,056
39,759

41,297
41,600

241
1,841

Provides for operation and maintenance of 36 projects and
Missouri River Basin units.

General administrative expenses, NOA
401 Exp.

10,775
10.758

11,016
11,011

11,404
11,379

388
368

Provides overall administration and the technical direction of
the Bureau's program.

Loan program.

10,307
12.140

13,495
15,000

9,995
14,000

-3,500
-1,000

Finances work on 10 projects started in prior years; 3 small
projects will be completed.

General investigations

401

Construction and rehabilitation. _
401

Exp.

A
B
p

401

NOA
Exp.

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.




o
o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollar,)—Continued
1965
enacted

Account and functional cods

1966
estimate

1967

Increase or
decrease ( —)

Explanation of NOA requests

DEPARTMENT OF THE INTERIOR—Continued
WATER AND POWER DEVELOPMENT—Continued
Bureau of Reclamation—Continued

General and special funds—Continued
Emergency fund
401 NOA
Exp.

w

5,000

1,000

1,000

1,575

-1,081

This account requires increase to assure continued operation of
Federal water and power facilities in emergency situations.

3,429

2,656

Recreational and fish and wildlife NOA
facilities, Colorado River stor- Exp.
age project
401

4,500
3,462

4,484
5.432

3,800
4,500

-684
-932

Development of recreational facilities will be completed at 1
reservoir, continued at 5, and started at 2. Construction of
fish and wildlife facilities will continue at 10 sites.

Other miscellaneous appropria- NOA
tions (permanent, special funds) Exp.
401

4,188
4,465

3,612

3,663

3,587
3,585

-25
-78

Includes appropriations of Colorado River Dam fund revenues
for payment of interest to Treasury and other specific items.

-2,332

-3,175

-1,289

1,886

(Receipts from power sales are used for operation and maintenance. Increased expenditures are required in 1967 due
principally to increased costs of power generation and capital
outlays.)

d
o
a

Public enterprise funds:
Continuing fund for emergency Exp.
expenses, Fort Peck project,
Montana
„
__401
Upper Colorado River Basin fund. NOA
401 Exp.
Intraffovernmental funds:
Advances and reimbursements_401 Exp.
Total, Bureau of Reclamation NOA




Exp.

55,792
60,312

43,512
45,000

-17

17

327,408

328,422

327.947

323,000

39,250
40,950

-4,262
-4,050
-17

299,018
A
3,000
303,600
*24Q0

-26,404
-17,000

Construction continues on 3 storage units and transmission facilities ond on 9 participating projects.

w
•4

Bonneville Power Administration

General and special funds:
Construction

87,420
38.923

NOA

15,260

Exp.

Operation and maintenance...401

15,368

109,165
102.990

Continuing fund for emergency NOA
expenses, Bonneville project, Exp.
Oreg. (permanent, indefinite,
special fund)
401

Total, Bonneville Power Ad- NOA
ministration.
Exp.

A
A

103,380
54,895

849

Increase will provide for the operation and maintenance of
transmission facilities added to the power system.

849
-243
-339

243
339

700
604

Public enterprise funds:
Bonneville rower Administration NOA
401 Exp.

Increase continues construction of both extra-high-voltage transmission for the Pacific Northwest power grid and of the Pacific
Northwest-Southwest power intertie.

17,010

15,988 1
B
173
16,161

11,404
35.490

17,010

97,761
67,500

401 NOA
Exp.

-38,951
-38,951

A
A

-40,432
-40,432

113,992 1 A 126,175 1
-38,951 1 -40,432
B
173
120,000 J
84,000
A
A
-40,432
-38,951
A

This fund is used only as needed to insure continued operation of
the power system in emergencies.

-1,481
-1.481

Proposed legislation permits receipts from sale of power to be
used, thus reducing net expenditures and need for NOA.

3

10.529

o
o

34,519

Southeastern Power Administration
General and special funds:
Operation and maintenance__401

NOA
Exp.

Public enterprise funds:
Southeastern Power Administra- NOA
tion
.-..401 Exp.
Total. Southeastern Power NOA
Administration.
Exp.
A
B Proposed

1,000
850

A
A

999
644

50

A
—1.000
-26,200

-1,000

1,000
800

999
644

-l,000
-25,200

1,000
-l,000
800
A
-25.200
A

A

1,000
-l,000
850 1
A
-26,200

Proposed legislation permits receipts from sale of power to be
used, thus eliminating net expenditures and need for NOA.

A

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




Provides for continuation of power marketing program.

-950

to
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967

Increase or
decrease(—)

Explanation of NOA requests

DEPARTMENT OF THE INTERIOR—Continued
WATER AND POWER DEVELOPMENT—Continued
Southwestern Power Administration
General and special funds:
Construction

401 NOA
Exp.

4,500

2,282

4,500
A
320

614

2,115

290

2,111

2,847

Exp.

1,655

3,700
3,600

-300
631

A

-3,325
-3,325

-1,594
-1,594

A

10,315
-3,325

678

A

10,211
-3,005

-63

1,800
B
25
1,825

Continuing fund (indefinite, spe- NOA
cial fund)
401 Exp.

4,500
3,274

4,000
2,969

Operation and maintenance. _ _401 NOA

1,680

Public enterprise funds:
Southwestern Power Administra- NOA
tion
401 Exp.
Total, Southwestern Power NOA
Administration.




Exp.

A

-1,731
A—1,731

8,790
7,776

7,498
-l,211

A

B
25
8,800
A
-I,531

Increase provides for planning and construction of an additional
200 miles of transmission lines, substation capacity, and related facilities. The supplemental is for completion of facilities
started in prior years.

a

H

286

1,698
A
520
4,006
A
200

2,610

A

Increase is required to operate and maintain additional power
facilities as more construction is completed.
Provides for energy purchases and rental of transmission lines

a
Proposed legislation permits receipts from sale of power to be
used, thus reducing net expenditures and need for NOA.

Office of Saline Water
General and special funds:

Salaries and expenses

f

401

Operation and maintenance _ .401

NOA
Exp.
NOA
Exp.

13,900
9,533

20,000
13.215

28,595
19.216

8,595
6,001

Increase emphasizes research and engineering development of
distillation and membrane processes.

2,485
1,822

2,351
2.351

-134
—134
529

Provides for operation of 4 demonstration plants during 1967.

330

-666
—666

(Replacement of a demonstration plant transferred to the Navy
Department in 1964 is being financed by a Navy reimbursement and a reappropriation of balances of prior appropriations.)

1

Construction, operation, and main- NOA
tenance
401
Reappropriation
NOA
Exp.

2,250
1.605

666
1,263

733

-530

Total, Office of Saline Water NOA
Exp.

16,150
11,468

23,151
16.300

30,946
22,300

7,795
6.000

Total, water and power devel- NOA
opment

456,727

Exp.

467,454 1
474,063 )
-41,162 } A -41,757
B
198
456.961 1
432,900
A
A
-67,237
-65,682

A

402.730

f
1

j

SECRETARIAL OFFICES

ts

-7,402
o

22,506

Office of the Solicitor
Salaries and expenses

409 NOA
Exp.

A
B

4,393
4.374

4,487 \
B
110
4.500

4,704

107

4.704

204

Increase will provide legal services for new departmental programs.

m
o
<

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




to
00
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1966

1967

Explanation of NOA requests

e(-)

DEPARTMENT OF THE INTERIOR—Continued
SECRETARIAL OFFICES—Continued

W

Office of the Secretary
General and special funds—Continued
Salaries and expenses
409 NOA

4,365

Exp.

4,276

409 Exp.

-33

reimbursements Exp.
409

5,186

631

5,327

874

8

-1

-37

39

-23

-62

Total, Office of the Secretary. NOA

4,365

4,450 |

5,186

631

Exp.

4,206

4,500

5.303

803

401 NOA

3,450

6,894

498

Exp.

2,296

6,390 1
B
6
6,500

6,677

177

16,784

1,236

16,684

1,184

d

-9

Intragovernmental funds:
Working capital fund
Advances

and

4,450 |
B
105
4,453

Department direction and management will be strengthened and
some activities of the Office of the Commissioner of Fish and
Wildlife will be financed in this account in 1967.

03

Bine
"lUJ)

o
>

Office of Water Resources Research
General and special funds:
Salaries and expenses

Total, secretarial offices. _ _




o

NOA

12,208

Exp.

10,876

15,327
B221
15,500

Estimate provides for grants to States for support of water
resources research institutes and for an increase in matching
grants to institutes for specific water resources research projects.

VIRGIN ISLANDS CORPORATION
Public enterprise funds:

Operating fund

910 Exp,

I

-751 |

—2,073

751 j (Corporation will complete liquidation of its assets and cease all
| activity by the end of 1966 )

(100) |
I

•^75Tj

Limitation on administrative expenses.
Total, Virgin Islands Corporation.

-2,073

(-100)
751

1,427,224 |] 1,431,513
-37,072 \\ A - 4 1 J 5 7

Total, Department of the NOA 1,334,635
I
Interior.

Exp. I 1,204,753

1,293,210
1,387,784
-57,280 } A-66,049
B
6,427 j
B308

79,686

A

i

ts

-7,131

A

3

D E P A R T M E N T O F JUSTICE

o
o

LEGAL ACTIVITIES AND GENERAL
ADMINISTRATION

I

General and special funds:

Salaries and expenses, general NCA
administration
908
Exp.
Salaries and expenses, general legal NOA
activities
908 Exp.

5,059
4,925
20,410

19,318

5,339
B
75
5,255

5,767

353

5.727

472

21,274
21,224

21,887
21,720

613
496

Increase provides for more effective program analysis and planning, strengthening cf the Office of Criminal Justice, and workload increases.
Additional amount provides for growing workloads.

Trust fund:

Limitation on general administrative expenses, alien property
activities.
A
B

(690)

(376)

Proposed for separate transmittal, other than pay increase supplemental.
Proposed for separate trans initial, civilian pay increase supple mental.




(80)

(-296)

(Estimate contemplates that the Office of Alien Property will be
closed June 30, 1966, and that the remaining workload will be
transferred to "Genera! legal activities.")

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1966

1967

Increase or
decrease ( - )

Explanation of NOA requests

CO

to

DEPARTMENT OF JUSTICE—Continued
LEGAL ACTIVITIES AND GENERAL
ADMINISTRATION—Continued
General and special funds:
Salaries and expenses. Antitrust NOA
Division
508
Ex P .

7,072
6,894

7,409

I

114

7,330

7,130
B 165
7,240

90

34,450

1,653

33,827

1,227

Increase will provide salaries for assistant U.S. attorneys comparable to those of departmental attorneys, and finance
expanded training programs for attorneys and marshals.
Fees and expenses are paid to witnesses who appear on behalf of
the Government.

Salaries and expenses, U.S. attor- NOA
neys and marshals
908
Ex P .

31,226

32,150
B
647
32,600

Fees and expenses of witnesses_908 NOA
Exp.

2,800
2,515

2,800
2,700

2,800
2,800

100

7,249
5,000

13,693
11,036

6,444
6,036

31,885

Program will be carried on at 1966 level.

w
o

GO

Law enforcement assistance..908 NOA
Exp.
Intragovern mental funds:
Advances and reimbursements.908 Ex P .
Total, legal activities and NOA
general administration.
Ex P .

-48
67,217
64,830

86,006

9,177

82,440

8,404

CO

FEDERAL BUREAU OF
INVESTIGATION
General and special funds:
Salaries and expenses




908 NOA
Exp.

161,080
159.507

165,275
B
3,735
168,847

o

-17

17
75,942 1
B
887
74,036

Increase reflects additional emphasis on efforts to improve law
enforcement, corrections, and the administration of justice in
State and local jurisdictions.

175,465

6,455 Increase will provide for additional civil rights work, continua-

179,138

10,291

tion of the promotion plan for special agents, and initiation
of research in the automation of fingerprint identification.

IMMIGRATION AND NATURALIZATION
SERVICE
Salaries and expenses

908 NOA
Exp.

73,161
72,207

73,175 )
1,782 \
75,314

B

75,541

584

75,324

10

59,475

1,881

Additional amount provides for increased workload, partially offset by savings due to management improvements.

FEDERAL PRISON SYSTEM
Salaries and expenses, Bureau of NOA
Prisons
908
Exp.
Buildings and facilities

908 NOA
Exp.

Support of U.S. prisoners-...__908 NOA

56,000

55,584
22,952
2,954
4,580
4,507

Exp.
A
B
c

56,560 }
M97 I
»797
C
40
54,644
A 190

J

58,851 \

)

4,256
9,727

3,500
7,435

-756
-2,292

4,500 1
A
500 i
4,796
A
200

4,700

-300

Supplemental in 1966 provides for the increased cost of maintaining Federal prisoners in non-Federal institutions. Estimate for 3967 provides for care of an average of 3,041 prisoners
at a cost of $4.28 per man-day* $0.12 higher than in 1966,

I

Estimate provides for several major renovation and improvement
projects and a continuing program of repairs and improvements.

4,700 )
A
300

Proposed for separate transmitt&l, other than pay increase supplemental.
Proposed for separate transmittal, civilian pay increase supple mental.
Proposed for separate trans mittal, military pay increase supplemental.




4,024

Supplemental in 1966 is for wage board increases. Increase in
1967 reflects expanded efforts to develop and implement new
rehabilitation techniques, and establishment of additional prerelease guidance centers. Prison population will average 21,500
compared to 21,624 in 1965.

4

o
o

fe
fed

to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dolbrs)—Continued
1965
enacted

Account and functional code

1966

1967
estimate

Increase or
decrease(—)

Explanation of NOA requests

DEPARTMENT OF JUSTICE—Continued
FEDERAL PRISON SYSTEM-Continued
Intragovernmental funds:
Federal Prison Industries, Inc.:
Federal industries fund
908 Exp.
Limitation on administrative
and vocational training expenses.

-1,439
(2.190)

Advances and reimbursements_908 Exp.

8

Total, Federal Prison Sys- NOA
tem.

83,532

-3,800
(2,270)

-3,297
(2,613)

65,316
A
697
B
797
c
40
65,367
A390

67,675

Exp.

61,614

Total, Department of Justice. NOA

384,990

379,708
A
697
»7,201

Exp.

358,158

377,033




503 (Estimate provides vocational training for 10,990 inmates and
employment of 5,250 inmates full time in various industries.
(343)
Increased emphasis will be placed on finding jobs for inmates
on their release.)

825

67,689
A
307
404,687

OS

C40
A390

*6,495
C36

403,881
A
307
B706

p
>

20,944

DEPARTMENT OF LABOR
MANPOWER ADMINISTRATION
General and special fund**

35,330
A
15
B
66

Exp.

39,162

3,751

20,000
M3

Salaries and expenses, Office of NOA
Manpower Administrator.. „ 652

21,000

989

Manpower development and train- NOA
ing activities
652
Exp.

230,041

8,500
6,396

2

2,133

396,906

Trade adjustment activities. _ 652 NOA
Exp.

344
232

Salaries and expenses, Bureau of NOA
Apprenticeship and Training
652 Exp.

5,722
5,547

Special study on discrimination in NOA
employment because of age 652 Exp.

281

281,582

Advances for employment services NOA
652
Exp.

A

7,008
B
87
6,800

A
B
c

5,600

-10,000
4,665

Supplemental is for worker allowances and State administration
of the Canadian Auto Products Trade Act of 1965 and the
Trade Expansion Act of 1962.

1,302

increase will provide for additional promotion of apprenticeship
training, and expanded promotion and supervision of on-the-job
training under the Manpower Development and Training Act.

I
7,500 j

700

3

O

a

I
a

(Study was completed in 1965.)

350
44

-44
1

A

23,000
-23,000 .

A

23,000 |\
-23,000 [J

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




(Program is now financed under Manpower Development and
Training Activities.)

-6

10,000

i

2,349

477

8,397

10,000
35
A
900

100
80

Farm labor contractor registration NOA
activities
652 Exp.

A

400,044

Program will be redirected to concentrate on training the severely
disadvantaged, and to increase use of on-the-job training.
About 250,000 unemployed workers will be trained in 1967.

-2J33~!

399,542
B
25
279,233

Area redevelopment activities.652 NOA
Exp.

A

Supplemental for 1966 is required for immigrant eligibility
determinations under Public Law 89-326. Increase in 1967 is
to expand contractual and grant research in the manpower
area, and provide additional staff for overall direction of manpower programs in the Department.

-10,000

This program has been transferred to Salaries and expenses,
Bureau of Employment Security.
Advances aie primarily to helpfinanceimproved service for youth.
Legislation in 1967 will permit the use of funds from other
sources for this purpose,

CO

c

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965

1967

1966

Increase or
decrease ( - )

Explanation of NOA requests

DEPARTMENT OF LABOR—Continued
MANPOWER ADMINISTRATION—Con.
General and special funds—Continued
Salaries and expenses, Bureau of NOA
Employment Security
652

3,004
A
790
B
32
2,900
A
500

Exp.

2,625
2,400
A
290

-710

(3,743)

Limitation on salaries and expenses, Unemployment trust

(13,952)

(15,434)
B
(207)

(19,384)

Limitation on grants to States for
unemployment
compensation
and employment service administration, Unemployment trust
fund.

(455,636)

(492,100)

(508,950)

Unemployment compensation for NOA
Federal employees and exservicemen
652

137,000

131,000

107,000

Exp.

122,398

Compliance activities, Mexican NOA
farm labor program
652 Exp.

800
815

Salaries and expenses, Mexican Exp.
farm labor program
„ _ _ 652

719

Miscellaneous expired accounts Exp.
652

-40




B

-942
c_7
100,000

-1,201

Supplemental is for immigrant eligibility determinations under
Public Law 89-326. Decrease reflects smaller program for
farm labor recruitment, partially offset by expanded activities
under the Manpower Development and Training Act.

td

d
3

Increase provides for technical assistance in achieving management improvements in State employment security operations,
and improved supervision over employment services.

(16,850) Increase is primarily to meet mandatory salary increases and other
changes in State law, and basic improvements in employment
service activities. Grants in addition to the limitation,
primarily for youth services, will be financed by "Advances for
employment services."
-11,896

Supplemental is to transfer funds not needed in this activity to
activities which require supplemental funds in 1966. Decrease
in 1967 reflects continued economic improvement.

100,000

(Authority for this program has expired.)
(Authority for this program has expired.)

98

a
l
O
W

Public enterprise funds:

Farm labor supply revolving fund Exp.
652

-359

Advances to employment security Exp.
administration account, Unemployment trust fund
652

-2,226

—2,400 j

— 3,600 I

— 1,200
|

(Temporary advances to the Unemployment trust fund are repaid
in the same year. Net receipts are interest on the amount
advanced.)

I ritra governmental funds:

Advances and reimbursements, Exp.
Manpower Administration __ 652
Total, Manpower
tration.

Adminis- NOA

-614

549,722

585,884
A
-350

A

580,228
-23,000

-27,567

A

431,882
-17,108

4,512

B-732

Exp.

363,272

408,849
A
l,413

i*

LABOR-MANAGEMENT RELATIONS

o
a

General and special funds:

Salaries and expenses, Labor- NOA
Management Services Admin- Exp.
isiration
652

7,743
7,221

Salaries and expenses, Bureau of NOA
Veterans' Reempioyment Rights Exp.
805

8,579
8,298

8,510
8,078

-69
-220

821
813

48

—48 j

Salaries and expenses, Bureau of Exp.
Labor-Management Reports_652
Total, labor-management re- NOA
lations.
Exp.
A
B
c

The Bureau of Veterans' Reempioyment Rights has been merged
into the Labor-Management Services Administration above.

*

The Bureau of Labor-Management Reports has been merged
into the Labor-Management Services Administration above.
8,564
8,035

8,579
8,346

8,510
8.078

Proposed for separate transmittai, other than pay increase supplemental.
Proposed for separate transmittai, civilian pay increase supplemental.
Proposed for separate transmittai, military pay increase supplemental.




Decrease reflects management improvements in the processing
of labor-management reports and in the veterans' reemploy| merit activity.

-69
-268

to
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

Increase or
decrease(—)

1967

CO

00

Explanation of NOA requests

DEPARTMENT OF LABOR—Continued
WAGE AND LABOR STANDARDS
General and special funds—Continued
Salaries and expenses, Bureau of NOA
Labor Standards
652
Exp.
[ntragovernmental funds:
Advances and reimbursements,
Bureau of Labor Standards.652 Exn.

W

3,675
3,562

3,243
B
39 !
3,005

3,349

67

3,000

d

-5

Increase is to intensify efforts to reduce accidents to Federal
employees.

39
*1

General and special funds:
Salaries and expenses, Women's NOA
Bureau
652

799

Exp.

804

860 1
B
ll
805

Advances and reimbursements, Exp.
Women's Bureau
652

-31

7

General and special funds:
Salaries and expenses, Wage and NOA
Hour Division
652

20,952

Exp.

20,295

20,886
A
350
B
264
20,100
A
306

I—I

1

888

17

820

Program will be carried on at 1966 level.

15

I ntragovernmental funds:

Salaries and expenses, Bureau of NOA
Employees' Compensation_ _906

4,534

Exp.

4,432




-7

1

4,495
B
51
C
7
4,300 J

}

CO
O5

22,256
21,000
A44
4,707

756

i

The 1966 supplemental and the increase for 1967 reflect the cost
of administering the Service Contract Act of 1965 (Public
Law 89-286).

638

154 Increase to stabilize growing backlog will be partially offset by
management improvements and increased productivity.

4,400

100

Employees' compensation claims NOA j
and expenses
906 Exp.

52,650
52,658

4,155 | Increase in claims payments is more than offset by rising re5,165
imbursements from the employing agencies.

Total wage and labor stand- NOA
ards.
Exp.
BUREAU OF LABOR STATISTICS
Salaries and expenses

Increase is for improved statistics and statistical research on
employment and unemployment, wages, prices, and productivity.

652 NOA
Exp.

Revision of the Consumer Price Exp. ]
index
__
_ _ _ _ _652

(The revision has been completed.)

J
D
El
93
>

Intr&governmental funds:

Advances and reimbursements.. 652 Exp.

o
o

Total, Bureau of Labor Sta~ NOA
tistics.
Exp.

S3

OS
<

BUREAU OF INTERNATIONAL LABOR I
AFFAIRS
General and special funds:

Salaries and expenses.

652 NOA
Exp. I

882

II I Increase for work in area of international labor organizations Is
partially offset by a decie^e m labor-manpower technical

811

ltttr&govemmental funds:

Advances and reimbursements.652 Exp. j
Total Bureau of Interna- NOA
tional Labor Affairs.
Exp.
A Proposed for separate transmittal, other than pay increase supplemental.
B
Proposed for separate transmittal, civilian pay increase supplemental.
° Proposed tor separate trazismittal, military pay increase supplemental.




to

CO
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

1967
estimate

Increase or
decrease(—)

Explanation of NOA requests

J-rJ

d

DEPARTMENT OF LABOR—Continued
OFFICE OF THE SOLICITOR
General and special funds:

652 NOA

5,047

Exp.

Salaries and expenses

4,851

Limitation payable from Unemployment trust fund.

(136)

5,401
B
68
5,100

i

5 ,451

-18

5 ,150

50

GO

(HO)

(139)

Decrease is in central office litigation activity.

! p
4
>

(D

OFFICE OF THE SECRETARY
Salaries and expenses

. _652 NOA

3,035

Exp.

2,809

Limitation payable from Unemployment trust fund.
Salaries and expenses, activities NOA
relating to admission and em- Exp.
ployment in agriculture of nonimmigrant aliens
652




(140)

3,332
B
35
3,050
(140)
1,723
800

i

3,685

318

3,010

-40

Increase primarily reflects transfer of some administrative activities from the Bureaus.

(140)
-1,723
-800

This activity is included in 1967 in Bureau of Employment
Security, Salaries and expenses and Office of the Solicitor,
Salaries and expenses.

Federal contract compliance pro- NOA
gram
652
Exp.

689 i
|
600 |

404 i

President's Committee on Con- NOA
sumer Interests
652 Exp.

i

238 Increase strengthens and provides for full-year cost of activities
transferred from the President's Committee on Equal Employ196 i ment Opportunity.

327 i
300 !

444 ;

327 i Estimate provides a direct appropriation in iieu of interagency
300
contributions.

Intrag-overnmental funds:

Working capita! fund

652 Exp.

-61
-19

Advances and reimbursements_652 Exp.
Total, Office of the Secretary. NOA

3,035 ;

Exp.

2,728 I

Total, Department of Labor.

NOA j
Exp. |

5,499 \\
B42 j
4,254

668,402

704,306

479,529

!
520,299 !
A|.719 i

4,701 I

-840 |

3,910 I
696,480 !|
A-23,000 if
538,607 n
A

-30,826

j!

-475

—17,064 f

! o
i o

POST OFFICE DEPARTMENT
Public enterprise funds:

Contribution to the postal fund NOA
(indefinite)
505
Exp.

A
B

!

781,207

674,400
M9,S00
205,770
830,646
M7.393

836,128 !

804,542

752,522
A
2,1O7

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




-93,542

B

-123,410

Estimated obligations of $5,916 million, less estimated revenues
and reimbursements of $5,080 million, leave $836 million to
be contributed. This is an increase of $251 million in obligations ($163 million for mail volume, $68 million for improved
facilities and equipment, and $20 million to strengthen management and improve the level of service) and $351 million
in revenue ($2! 4 million from mail volume and $137 million
from other sources). After deducting for public services, the
deficit is estimated to be $187 million, compared to $375 million
for 1966 and $281 million for 1965. The $49.5 million supplemental in 1966 is for greater than estimated mail volume, and
5-day workweek for postmasters as provided by recent legislation.

| a
.j £>

o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1966

1965

id fu ucl.uu.1

1967

Increase or
decrease ( - )

Explanation of NOA requests

CO

o

I3

"t.mat.

POST OFFICE DEPARTMENT—Continued
Public enterprise funds—Continued

Authorizations and limitations on
use of postal fund:
Administration and regional
operation.

(85,941)
(12,000)

Research, development, and
engineering.

(4,241,059)

Operations

(86,612) 1
(2,366)

(95,780)

(6,802) (Increase is mainly to strengthen management.)

(11.528)

(16,152)

(4,624) (Increase is to accelerate development of improved mail handling processes.)

(4,310,260) 1 (4,725,374)
A
(41,500)
B
(203,404)

(170,210) (Increase is for growth in mail volume (4.5%) and in delivery
areas and to improve service.)

B

Transportation.

(588,524)

(590,000)
A
(8,000)

(605,000)

(7,000) (Increase due to growth in mail volume is offset by savings from
more efficient use of transportation services.)

Building occupancy and postal
supplies.

(199,476)

(221,000)

(239,822)

(18,822) (Increase is for rental of new and improved postal space and
for postal supplies to handle increased mail volume.)

(75,000)

(105,000)

(158,000)

(53,000) (Increase is for renovation of facilities and purchase of vehicles
and other equipment.)

(5,202,000)

(5,324,400)
A(49,500)
B(205,770)

(5,840,128)

Plant and equipment
Total authorizations out of
postal fund.
Total, Post Office Depart- NOA
ment.

781,207

Exp.

804,542




674,400
49,500
B
205,770
634,932
M7.393
B
195,714
A

(260,458)

836,128

-93,542

742,466
A
2,107
B
10,056

-123,410

o
Q

DEPARTMENT OF STATE
ADMINISTRATION OF FOREIGN
AFFAIRS
General and special funds:

i
|
i
i

151 NOA I

171,145

Exp. |
Representation allowances

993;
983 i
|
18,125 j
23,129 !
5,000
3,067 |
J
j

Emergencies in the diplomatic and NOA j
consular service
151
|

2,000 i
!

i

2,063 I

!

Replacement of passenger motor NOA
vehicles sold abroad (perma- Exp.
nent, indefinite, special fund)

9,442

179,700

8,687

993
990

993
990

19,125
12,000

16,125
15,300

-3,000
3,300

Provides for consolidated office space and living quarters for
American employees.

6,500
5,000

6,250
6,000

-250
1,000

Provides funds for normal building needs and operating expenses
in excess foreign currency countries.

Major increases are for cost rises abroad, new posts, consular and
communication workloads, security, training, and aid to dependents' schools abroad.
Provides for special expenses in promoting U.S. interests abroad,
and participating in commemorative and ceremonial events.

! PS
! O

i a
1,600
A
500
1,600

1,600

-500

1,600
A
200

-ioo

Provides for relief and repatriation loans to U.S. citizens abroad
and other emergencies. Supplemental for 1966 is for requirements in excess of earlier estimates.

-45
-45

An appropriation is required before benefits provided by the Foreign Service Annuity Adjustment Act of 1965 can be paid.

-107

(All funds will be obligated or transferred to "Salaries &nd expenses" to meet increased pay costs by the end of 1966.)

A 45

Payment to Foreign Service retire- NOA | _
ment and disability fund__!51 Exp. |_
Extension and remodeling, State Exp. j
Department Building
151
|

188,964 |

175,024 |

151 NOA
Exp. I
i
Acquisition, operation, and main- NOA
tenance of buildings abroad .151 Exp.
Acquisition, operation, and main- NOA
tenance of buildings abroad Exp.
(special
foreign
currency
j
program)
151
|

Exp.

176,886
* 2,636
171,013

Salaries and expenses

174

200

93

313
410

325
300

325
300

!

Q

! O

Proceeds available in 1967 will replace 135 vehicles.

151
A
B

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




0$

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

1967

Increase or
decrease (—)

o

Explanation of NOA requests

DEPARTMENT OF S T A T E — C o n t i n u e d

I
w

ADMINISTRATION OF FOREIGN
AFFAIRS—Continued
Intragovernmental funds:
Working capital fund

151 Exp.

-138

Advances and reimbursements_151 Exp.

197,576

Exp.

205,705

-200

-165

205,429 )
A
545
B
2,636
191,068
A345

214,257

12,570

96,953 |
B-1,375
95,600

100,826

5,248

100,800

5,200

d
©

5,647

203,783 1
A 200

(The fund was initiated in 1965 to finance publishing, supply,
and other support services.)

992

Total, administration of for- NOA
eign affairs.

-35

a

INTERNATIONAL ORGANIZATIONS
AND CONFERENCES
General and special funds:
Contributions to international or- NOA
ganizations
151
Exp.

87,548
86,790

3,784

350

3,287

3,375 1
B59
3,356

3,622

1,943
1,900

2,045
1,942

102
42

Missions to international organi- NOA
zations
151
Exp.

3,345

International conferences and con- NOA
tingencies
151 Exp.




Increase due to slight staff build-up at missions to U N and
UNESCO, and higher operating costs at all missions.

266

1,943
1,889

Increase reflects expansion of programs of most international
organizations, requiring higher U.S. contributions to their
assessed budgets.

Increase due to higher U.S. contributions to new or provisional organizations.

CO
CD

International tariff negotiations NOA
151 Exp.

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

?

93,686
92,642

B

Estimate will provide funds for tariff negotiations in Geneva.

50
-17,384

17,384

Loan to the United Nations. .151 Exp.
o
o

850
850

850
800

850
676

103,121 1
-l,316
119,040

107,505

5,700

107,214

-11,826

815 1

831

-1

(Estimate reflects the amount of U.N. bonds the United States
may purchase to match pledges by other nations.)

a
a

INTERNATIONAL COMMISSIONS

^
°

International Boundary and Water
Commission, United States
and Mexico:
Salaries and expenses
401 NOA

815

Exp.

734

832

831

-1

Provides funds for preliminary investigations to determine need
and feasibility of joint projects for solution of boundary
problems.

B17

Operation and maintenance_401

NOA
Exp.

1,987
1,913

2,025
2,025

1,985
1,985

-40
-40

Decrease reflects lower maintenance costs and requirements for
the accumulation of basic stream flow and hydrologic data.

Construction

401

NOA
Exp.

8,298
8,743

10,883
10,000

5,454
9,000

-5,429
-1,000

Work on Amistad Dam will continue. Lower Rio Grande flood
control and Nogales sanitation projects will be completed.

Chamizal settlement

401

NOA
Exp.

30,000
2,703

6,640
13,000

4,440
12,000

-2,200
-1,000

Lower requirements are due to acceleration of land acquisitions
and construction in 1966.

American sections, international
commissions
401

NOA

472

683

176

Exp.

425

605

123

Increase is largely for full-year cost of the Lake Ontario Claims
Tribunal. Supplemental in 1966 is for preparing claims for
that Tribunal.

2,125
2,000

2,150
2,050

25
50

Provides U.S. share of 8 international fisheries commissions and
expenses of the U.S. Commissioners.

500
300

200

-500
-100

Grant to the University of Washington for the construction and
maintenance of a laboratory and offices for the Commission.

International fisheries commis- NOA
sions
404 Exp.
Facilities for International Pacific NOA
Halibut Commission
404 Exp.
A
B

2,025
1,970

475 1
32
450 \
A 32 !
A

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




O
O

W

3
o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1966

1967

i Increase or >
i decrea.e<-) I

Explanation of NOA requests

DEPARTMENT OF STATE—Continued
INTERNATIONAL COMMISSIONS—
Continued
General and special funds—Continued

Total, international commis- NOA
sions.
Exp.

— 51 { (Activities under this account will be completed in 1966.)

51

Restoration of salmon runs, Fraser Exp.
River system, International
Pacific Salmon Fisheries Commission
404

i

43,597
16,489

23,463
-32 ;
*17
28,658
A
32

15,543

-7,969 ;

26,671

-2,019

i °

6

EDUCATIONAL EXCHANGE
Mutual educational and cultural NOA !
exchange activities
153 Exp.
International educational exchange Exp.
activities (special foreign currency program)
153
Center for Cultural and Technical NOA
Interchange Between East and Exp.
West
153
Preservation of ancient Nubian Exp j
monuments (special foreign curj
!
rency program)
153




44,998 j
47,025 \
I
6,395 |

53,000 '
46,430

50,000 i
49,220 |

6,000

3,000 i

5,300
4,385

5,800 |
4,815

6,050 j
5,250 !

-3,000 i Decrease reflects reductions in special projects, cultural presenta2,790 | tions, and exchange of persons.

i

(Expenditures will continue until prior appropriations are exhausted.)

-3,000

250 Increase is for pre-construction planning for a new library
435 j building.
I

114

41 i

G

—411 I (These funds are expected to be fully spent in 1966.)

Educational, scientific, and cul- Exp.
tural activities
153

-9

Educational exchange permanent NOA
appropriations (indefinite, spe- Exp.
cial funds)
153

375
435

353
405

353

375

-30

Total, educational exchange. NOA
Exp.

50,673
58,358

59,153
58,070

56,403
57,845

-2,750
-225

8,200

7,575
371
7,200

6,050

-1,896

6,350

-850

(These funds are expected to be fully spent in 1966.)
Payments by Finland on World War I debts are used for educational exchanges with Finland.

OTHER

Migration and refugee assistance NOA
Reappropriation
152 NOA
Exp.

"6748"

Presentation of a statue to Mexico NOA
151 Exp.

Payment to the Republic of NOA
Panama (permanent)
151 Exp.

1,930
1,930

NOA
Exp.

Total, Department of State.. NOA
Exp.

A
B

10,130

9,976

9,800

10,080

395,662

401,142
A
577
B
1,337
405,646
A
377
B
1,270

382,993

783

900
1,930
1,930

-117

(Completion of the road is anticipated in 1967.)

1,930
1,930

W

o
o

Annual payment is made under treaty for Panama Canal rights.
$430 thousand of this is recovered from the Panama Canal
Company.

7,980
9,113

-1,996
-967

401,688

-1,368

404,559

-2,467

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




Statue of Lincoln will be presented in commemoration of Mexican
independence, as authorized by law.

50

50

1J22

Total, other

-100

100

152 Exp.

Rama Road, Nicaragua

Decrease reflects less U.S. support for migration and refugee programs, partially offset by new requirements for Cuban refugees
and a contribution to the International Committee of the Red
Cross.

o

A200
B
67

8

ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES BY
Account and functional code

1965
enacted

1967

1966
estimate

Increase or
decrease ( - )

AGENCY (in thousands of dollars)—Continued
Explanation of NOA requests
3

TREASURY DEPARTMENT
OFFICE OF THE SECRETARY
General and special funds:
Salaries and expenses

©

o

1 *>m

5,907

6,280

Exp.

5,797

B
114
6,281
A
23

6,898
A]

Expenses of administration of set- NOA
tlement of War Claims Act of Exp.
1928 (permanent, indefinite, special fund)
904

13
14

15
15

16
16

1

581

1

904 NOA

Federal control of transportation Exp.
systems
904

1

55
9

Supplemental in 1966 is for wage board increases. Increase in
1967 provides for more effective program analysis and planning, and for strengthening the tax research program.
*1

1 j Funds are appropriated from a receipt account for administrative
1
expenses cf paying awards under the act.

d

CD

Public enterprise funds:
Liquidation of corporate assets: Exp.
Reconstruction Finance Corporation liquidation fund 904
Civil defense loans: Civil defense Exp.
program fund
059
Liquidation of Federal
Mortgage Corporation




Farm Exp.
904

i

19

(The fund was closed as of Dec. 31, 1964.)

(The fund was closed as of Dec. 31, 1964.)

-28

-277

-32

1

33
33 I (Collections from Federal land banks will be completed in 1966.)

Intragovernmental funds:

Advances

arid

reimbursements Exp.
904

Total, Office of the Secretary, NOA

Exp.

1
5,920
5,526

6,295 | 7,015
A 24
B
114
6,916 1
6,265
A 23
M

582
629

BUREAU OF ACCOUNTS
General and special funds:

Salaries and expenses

904

Salaries and expenses, Division of
Disbursement
904
Claims, judgments, and relief acts:
Current, definite
910

NOA
Exp.

32,764
26,140

33,499
31,296

Exp.

5,974

NOA
Exp.

Permanent, definite.

.910 NOA
Exp.

Permanent, indefinite.

_910

NOA
Exp.

Interest on uninvested funds (per- NOA
manent, indefinite)
853 Exp.
John F. Kennedy Memorial Fund
910
A
B

Exp.

32,988
32,475

-511
1,179

Decrease reflects increased productivity and 1966 nonrecurring
equipment purchases.

57

-57

(This appropriation was merged with "Salaries and expenses,
Bureau of Accounts" in 1965.)

65,508
65,524

26,933
24,654

-26,933
-24,654

7
7

6
6

6
6

Statutory award is paid annually as a result of a private relief act.

8,893
8,893

9,000
9,000

9,000
9,000

Judgments of $100 thousand or less are paid from this permanent
appropriation.

11,752
11,752

12,459
12,459

12,777
12,777

1

318
318

Prospective requirements for the remainder of 1966 and 1967
are uncertain and are covered by the allowance for contingencies.

Interest increases as balances increase on open-book balances of
8 trust funds.

o
o

3

O
4

(Gifts to the United States in memory of President Kennedy are
used for the purposes specified.)

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




00

o

CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

I

1966
estimate

1967
estimate

Explanation of NOA requests

j Increase or
decrease ( —)

CO

o

TREASURY DEPARTMENT—Continued
BUREAU OF ACCOUNTS—Con.
Public enterprise funds:

54 j

Fund for payment of Government Exp.
losses in shipment
904

j

(Fund covers losses in shipment of certain Government property
and losses in redemption of savings bonds.)

Total, Bureau of Accounts.. _ NOA
Exp.

3
2
9
o
ft

BUREAU OF CUSTOMS
General and special funds:

Salaries and expenses

2,047 | Supplemental in 1966 U for wage board increases. Increase
in 1967 will add manpower to meet greater work volume and
strengthen enforcement.

904 NOA
Exp.

BUREAU OF ENGRAVING AND
PRINTING
Air conditioning the Bureau of NOA j
Engraving and Printing build- Exp. !
ings
904

5,750
272

—457 ;

(The installation will be completed with balances of prior
appropriations.)

1 titeagovernmenthl funds:

—773 | (Decrease results from major expenditures for equipment in
j 1966 nonrecurring in 1967.)

Bureau of Engraving and Printing Exp.
fund
904
Total, Bureau of Engraving NOA 1
and Printing.
Exp.




5,750
1,! 78

5
5

BUREAU OF THE MINT
General and special funds:

Salaries and expenses

904 NOA
Exp.

Construction of mint facilities.904 NOA
Reappr opr iation
NOA
Exp.

14,659
13,151
16,000
500 1
94

26,350
24,314

31,500
31,595

Coinage profit fund (permanent, NOA
indefinite, special fund)
904 Exp.

959
694

Silver profit fund (permanent, in- NOA
definite, special fund)
904 Exp.

3,078
1,407
35,195
15,346

50,374
36,004

16,400
3,140
3,140

1,084

Total, Bureau of the Mint___ NOA
Exp.

1,724
2,100

7,281
-22,300

22,300
8,506

5,150

Increase raises the level of coin production from 11.2 billion in
1966 to 15.1 billion in 1967.
Funds appropriated in 1965 and 1966 are sufficient to complete
construction of the Philadelphia mint.

7,894
1,416
1,040
-1,084

34,640
51,135

6,138

202

6,007

91

51,330 1
B
360
49,541

51,894

204

51,088

1,547

(Beginning in 1967 this fund is merged with the coinage profit
fund.)

-15,734
15,131

5,856 |
B
80
5,916

Increase in appropriation of seigniorage is for transportation and
other costs related to the production of additional coins.

BUREAU OF NARCOTICS

Salaries and expenses

O

908 NOA

Exp.

5,657
5,458

Additional agent personnel will be assigned to selected overseas
posts to impede the illicit traffic in narcotic drugs.

o

BUREAU OF THE PUBLIC DEBT
Administering the public debt_904 NOA
Exp.
A
B

50,237
49,651

Increase is primarily for additional fees to paying agents for the
redemption of savings bonds.

o
a

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




CO

CO

ANALYSIS OF NEW OBL1GATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1966

1965

Increase or
decrease ( - )

1967

to

Explanation of NOA requests

TREASURY DEPARTMENT—Continued
COAST GUARD
General and special funds—Continued

Operating expenses

502 NOA
Exp.

Acquisition, construction, and im- NOA
provements
502 Exp.

322,197

28,825

308,600

36.065

103,000
80,000

-12,510

40,000
c
1,000
41,000

44,250

3,250

43,250

2,250

24,031

481

20,848

22,500
c1,050
22,550
41
3

425

-91 |

44

272,757

283,972
^9,400
272,535

85,000
55,999

115,510
73,685

273,749

D

6,315

Beginning in 1967 the Coast Guard will operate all U.S. deep draft
ice breakers, 5 such ships being transferred from the Navy.
Increase will operate new vessels, aircraft, and shore establishments.
Estimate provides for construction of 3 replacement vessels, the
acquisition of 8 replacement aircraft, 10 helicopters to support
icebreaker operations and construction or replacement of other
facilities.

o

o
so
*1
H-l

Retired pay

502 NOA
Exp.

Reserve training

502 NOA
Exp.

36,961
37,061
20,939

22,030
-520

A net average increase of 732 persons on the retired rolls is expected.
Increase permits acceleration of the program providing 2 years of
extended active duty, a slight increase in drill training, and
improvement of training facilities.

Intr<tgoverninental funds:

Coast Guard supply fund

502 Exp.

-216

Coast Guard yard fund

502 Exp.

44

Total, Coast Guard




NOA J 416,649
Exp.

386,493

461,982 !
c11,450
410,110

-6

493,478

135
20,046

454,349

44,239

(Receipts will exceed expenditures slightly in a $24.7 million
program.)
(Receipts about equal expenditures in a $15.8 million program.)

INTERNAL REVENUE SERVICE
General and special funds:
17,578 )
B
381
16,969

16,841
Salaries and expenses

904 NOA
38,882

18,692

733

18,043

1,074

169,529

6,597

162.644

6,077

467,845

19,197

448,706

16.551

Increase will provide the manpower to cover an increase in number of tax returns from 102.8 million in 1966 to 104.1 million
in 1967.

Increase is primarily to strengthen efforts to assure integrity in
tax administration and enforcement.

Exp.
151,995
Revenue accounting and process- NOA
ing
904
Exp.
Compliance

138.147
429,533

159,460 1
B
3,472
156,567
438,343 I
10,305
432,155

B

Increase willfinancethe final steps in conversion to the nationwide master file processing system.

904 NOA

409,598

Exp.
NOA
Exp.

77,419
77,237

91,200
91,065

90,900
90.765

-300
-300

Interest is paid at 6% per annum on internal revenue collections
which must be refunded.

NOA
Exp.

45,100
42.941

46,000
43,000

46,000
45,000

2.000

Taxes on articles produced in Puerto Rico are paid to Puerto
Rico.

Total, Internal Revenue Serv- NOA
ice.
Exp.

720,888

792,966

26,227

765.158

I

25.402

Refunding internal revenue collections, interest (permanent,
indefinite)
852
Internal revenue collections for
Puerto Rico (permanent, indefinite)
910

752,581 1
14,158
739,756

B

706,806

I

B
Proposed for separate transmittal, civilian pay increase supplemental.
° Proposed for separate transmittal, military pay increase supplemental.
° To carry out authorizing legislation to be proposed.




00
00

I 22
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of doilars)—Continued
i

1965
enacted

Account and functional code

Explanation of NOA requests

Increase or

1967

1966

TREASURY DEPARTMENT—Continued

i

I

i-H

!

K

i

>

Iw

OFFICE OF THE TREASURER
General and special funds—Continued

Salaries and expenses

Increased workload is being handled with smaller staff through
increased productivity and other management savings.

904 NOA
Exp.

Public enterprise funds:

(This fund covers settlements of checks paid on forged endorsements.)

Check forgery insurance fund .904 Exp.
Total, Office of the Treasurer. NOA
Exp.
V.$. SECRET SERVICE
General and special funds:

Salaries and expenses

Salaries and expenses,
House Police

White NOA
903 Exp.

Salaries and expenses,
force

guard NOA
904
Exp.




24,628 !
14,325 j

908 NOA
Exp.
1,859
1,828
436
412

1,866
1,867
434
ll
447

61

2,656 | The increase is principally to finance activities transferred
3,246 i from "Salaries and expenses, White House Police*' and "Salaries
and expenses, Guard Force/'
- 1 , 8 6 6 Activities transferred to "Salaries and expenses, Secret Service."
-1.806 I
—445

B

16 j

-431

Activities transferred to "Salaries and expenses, Secret Service."

Contribution for annuity benefits NOA
(permanent, indefinite)
903 Exp.

498
498

NOA

11,103

Exp.

Total. U.S. Secret Service...

10.462

530
530

560
560

30
30

15,188

375

14.962

1.039

12,000,000
12.000,000

12,750,000
12.750.000

750,000
750.000

13,513,566
M44
B
16,706
c
ll,450
13.401.750
A
138
B
16.097
c11.450

14,298,627

756,761

14.246.724 I
A
6
B
609

817.904

The District of Columbia is reimbursed for benefit payments
made for Secret Service employees.

14,802 J
B
ll
13.923

INTEREST ON THE PUBLIC DEBT
Interest on the public debt (per- NOA 11,346,455
manent, indefinite)
851 Exp. 11.346.455
Total, Treasury Department-

NOA 12,801,774

Exp.

A
B
c

12.730.006

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

3
>

w
o
a

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.




3

I

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967

j Increase or j
decrease(—) |

estimate

00

Explanation of NOA request*,

ATOMIC ENERGY COMMISSION
General and special funds:
j
|
Operating expenses
.058 NOA 2,261,555 |
2,254,469
Exp.

Plant and capital equipment--058 NOA j
Exp.
|
Intragovernmental funds:

363,000
364,856

2,121,898 | ^1,985,000 i
2,050,000 j 1,995,000

243,995
340,000

R

278,200
305,000

-136,898
-55,000

34,205
-35,000

;

Advances and reimbursements_058 Exp. I
Total, Atomic Energy Com- NOA
mission.
Exp.

Estimate provides increases for basic research in the physical
and biomedicai sciences, for programs to develop the civilian
applications of radioisotopes and nuclear explosives, and to
conduct training, education, and scientific information activities; these increases are more than offset by decreases in procurement of uranium concentrates, production of special
nuclear materials, and the weapons program.
Estimate provides for a higher level of funding for construction
projects in support of research and development programs,
offset in part by some reduction in procurement of equipment.

5,671

2,365,893 | 2,263,200 I -102,693
2,390,000 ; 2,300,000 . -90,000

2,624,555
2,624,996

FEDERAL AVIATION AGENCY
!
General and special funds:

Operations

-501 NOA |
Exp.

Facilities and equipment




|
I
501 NOA \
Exp.
|

o

551,900

546,989
B
9,500
543,000

549,407

561,500

49,800
65,000

28,000
73,000

550,000

5,011 | Increased costs of operating newly commissioned airways facilities
and of handling increasing air traffic will be partially offset by
7,000
productivity improvements and other cost reduction measures.

|
50,000
77,942

-21,800 The 1967 estimate together with balances of prior year appropria8,000 | tions will provide for farther improvements in the Federal
I airways system. A major portion of the 1967 estimate h> tor
1 devices to automate certain traffic control activities.

I

Research and development—50! NOA
Exp.

40,000
35,768

37,500
35,000

30,000
30,000

-7,500
-5,000

Efforts will bs continued to develop and perfect equipments to
enhance the reliability and capacity of the airways system.
Stress will be on further development of semiautomatic equipments to improve air traffic control.

Operation
and
maintenance, NOA
Washington National Airport
501 Exp.

3,623

3,678
B
54
3,540

3,779

47

Airport services will be provided at approximately the present
level. Receipts to the general fund recover the costs.

3,600

60

Operation and maintenance, NOA
Dulles International Airport
501 Exp.

4,379

4,528
B
62

4,707

117

4,760

4,157

4,500

343

1,710

1,050
3,000

2,100

-1,050
-900

1,800

-200
1,497

Needed improvements and contractor claims will be financed by
balances proposed to be transferred from the account, "Construction and development, additional Washington Airport."
The 1967 budget language proposes to cancel $21 million of the
amounts appropriated in 1966 for airport grants in 1967. Balance will be used for high priority airport improvement projects.

Construction, Washington
tional Airport
Construction, Dulles
national Airport

Na- NOA
501 Exp.

Inter- NOA
501 Exp.

3,724

2,640
180
431

200
303

Grants-in-aid for airports:
Permanent
501 NOA
Current
NOA
Liquidation of contract authorization.
Exp.

75,000
(7,000)
70,598

Civil supersonic aircraft develop- NOA
ment
501 Exp.

47,922

80,000

Construction and development, additional Washington airport_501 Exp.

1,420

1,000

Aviation NOA

726,792

Exp.

794,613

858,745
B
9,616
790,890
B9.110

Total, Federal
Agency.

B

(Expenditures decline with the completion of various improvement projects.)

75,000

71,000
-21,000

-25,000

65,000

60,000

140,000

80,000
115,000

-60,000
35,000

(Balances in this account are proposed for transfer to "Construction, Dulles International Airport.")

o
o

Estimate is to complete funding of an 18-month detailed design
competition planned for completion by mid-1967.

-1,000

>

-5,000

757,986
839,494
B
506

I

-110,375
40,000

Pro
roposed for separate transmittal, civilian pay increase supplemental.
Includes $1,978,820 thousand to carry out authorizing legislation to be proposed.
Includes $277,500 thousand to carry out authorizing legislation to be proposed.




Airport services will be provided at approximately the present
level.

CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars) —Continued
functional code

Account

1966
estimate

1965
nacted

1967
estimate

Increase or j
decrease(—)

00
00

Explanation of NOA requests

GENERAL SERVICES ADMINISTRATION
REAL PROPERTY ACTIVITIES

!

I
232,686
A
3,700
B
900
232,285 i
A
3,700

General and special funds:

Operating expenses, Public Build- NOA
ings Service
905
Exp.

225,326
;

Repair and improvement of public NOA
buildings
905 Exp. j

226,407

public

buildings NOA
905 Exp.

3,729

239,903

3,938

80,000
75,000 |
i
170,277
165,000

•—7,500
-8,000

133,603
154,000

90,000 j
82.730 j

i

Construction,
projects

241,015

19,530
26,000

12,786
23,000

—6,744

87,5001
83,000

i

164,718
136,033

a
Supplemental in 1966 is for wage board increases. Increase in
1967 is primarily for operation of new Federal buildings sched- j
uled for occupancy in ! 966 and 1967 partly offset by rent savings j
a
on space released.
Decrease is due to deferral of lower priority projects.

36,674 j Estimate includes funds for construction of 33 buildings, partial
11,000 j construction of 2 buildings, and completion of 1 project.
Estimate provides for design and site acquisition, where necessary,
for 10 public building projects.

Sites and expenses, public build- NOA j
ings projects
905 Exp. !

20,109 j
28,494 j

Payments, public buildings pur- NOA |
chase contracts
905 Exp. j

9,885
9,840

3,380 !

3,380 J

6,746
6,746

Expenses, U.S. court facilities.905

1,031
1,014 |

1,560
1,650

1,849 !
1,827 |

3,144 j

2,200

2,000

—200

(Appropriations in prior years will complete facilities for 73 additional judges.)

12,727

8,200

—4,527

(Expenditures are for a construction grant, payments of prior
obligations and claims, and construction financed by prior year
appropriations, including construction of Federal Office Building No. 7 in Washington, D.C.)

Additional court facilities

NOA
Exp.

905 Exp. ]

|

5,702 j
j

3,366 | Request provides for full prepayment of 1 lease-purchase contract
3,366 ' and annual payments on the remaining 5 contracts.
177 j

I

Real property miscellaneous ac- Exp. I
counts
905
i

—3,000 j




Request provides for space expansion and for furniture and furnishings of U.S. courts.

P3

Intragovernmental funds:

16,195

-6,466

-3,608

-500

500

Advances and reimbursements, Exp.
real property activities
905

-56

84

-84

Total, real property activi- NOA
ties.

511,069

Buildings management fund _ _905 Exp.
Construction services,
buildings..-

public Exp.
905

Exp

505,895

-750

5,716

478,259 ]
A
3,700
B
900
508,360 |
A
3,700

512,673

(Operating costs are estimated at $17.4 million.)

29,814

520,926

(Operating costs are estimated at $361.9 million.)

8,866

i
fed

o

PERSONAL PROPERTY ACTIVITIES
General and special funds:

Operating expenses, Federal Sup- NOA
ply Service
905

54,020

59,045 |
B
806

60,306

455

Exp.

53,426

59,596

60,295

699

Expenses, supply distribution.905 Exp.

10

The increase will support a greater volume of supply sales to
Government agencies at lower unit costs resulting from management improvements.

ft)

o
o

-10

Intragovernmental funds:

General supply fund

905 Exp.

Total, personal property ac- NOA
tivities.
Exp.

13,356
54,020
66,782

-23,524
59,045 |
B
806
36,082

-157

23,367

60,306

455

60,138

24,056

Sales to military and civil agencies are estimated at $752 million
in 1966 and $775 million in 1967.

A
B

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




CO

CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of deHars)—Continued
Account and functional code

J

1965
d
enacted

1966

1967

Explanation of NOA requests

Increase or
| decrease ( - )

i

GENERAL SERVICES ADMINISTRATION—Continued

w
UTILIZATION AND DISPOSAL
ACTIVITIES
General and special fund*:
Operating expenses, Utilization NOA
and Disposal Service
905 Exp.

d
9,512
8,961

9,477
9,400

9,346
9,300

Expenses, disposal of surplus real NOA
and related personal property Exp.
(permanent, indefinite, special
fund).__
_.
905

838
752

1,000

1,000

1,000

1,000 |

Total, utilization and dis- NOA
posal activities.
Exp.

10,350
9,713

10,477
10,400

10,346
10,300

-131
-100

Operating expenses, National Ar- NOA
chives and Records Service, _905

15,837

16,322
B
336

16,979

321

Esp.

15,746

16,504

16,917

413

350
350

-86

17,329

321

17,267

327

—131 i Decrease reflects management improvement actions.
-100

!

Proceeds of sales are appropriated for certain expenses of disposals.

!

RECORDS ACTIVITIES

Increase is primarily for records center activities. Records in
custody will total 9.3 million cubic feet in 1967, an increase of
0.3 million cubic feet over 1966.

i

National historical publications NOA
grants
905 Exp.
Total, records activities




350
264

350
436

NOA

16,187

Exp.

16,010

16,672
B
336
16,940

;

Estimate provides for collecting, reproducing, and publiehing
source material significant to U.S. history.

c
&

TRANSPORTATION AND COMMUNICATIONS ACTIVITIES
Operating expenses, Transporta- NOA
tion and Communications Serv- Exp.
ice
905

5,709
5,548

5,844
5,953

6,192
6,171

348
218

1,834

-636

-1,656

-1,020

5,709
7,382

5,844

5317

6,192
4,515

348
-802

17,874
16,284

17,400
17,200

19,847
19,700

2,447
2,500

Increase is for continued development and management of the
Federal Telecommunications System and for additional assistance to agencies in improving transportation management.

Intragovernmental funds:

Federal telecommunications fund Exp.
905
Total,

transportation

and NOA

communications activities. Exp.

(Operating costs are estimated at $88.1 million.)

DEFENSE MATERIALS ACTIVITIES
General and special funds:

Strategic and critical materials.059 NOA
Exp.
Public enterpriae funds:

Abaca fiber program

059 Exp.

Increase will accelerate disposal of strategic and critical materials
excess to national requirements.

o
a

3

(Fund liquidated in 1965.)

Intragovernmental funds:

Advances and reimbursements_059 Exp.
Total, defense materials ac- NOA
tivities.

Exp.

68

100

100

17,874
16,355

17,400
17,300

19,847
19,800

2,447
2,500

1,628
1,577

1,683
1,683

1,700
1,700

17
17

310
269

235
235

235
235

GENERAL ACTIVITIES
General and special funds:

Salaries and expenses, Office of NOA
Administrator
905 Exp.
Allowances and office facilities for NOA
former Presidents
903 Exp.
B

Proposed for separate transmittal, civilian pay increase supplemental.




Estimate provides for policy direction, review of appeals, legislative programs, and assistance to business concerns.
Account provides for 2 former Presidents and the widow of a
former President.
00

to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

Increase or
decrease(—)

1967

Explanation of NOA requests

GO

to
to

GENERAL SERVICES ADMINISTRATION—Continued
GENERAL ACTIVITIES-Continued
General and special funds—Continued
Expenses. Presidential transition NOA
903 Exp.

400
11

(This appropriation provided financing to carry out the purpose
of the Presidential Transition Act of 1963.)

1

i
— i

55

3

-3

12

40

25

-15

(Interest on remaining refunds is covered by balances of prior
appropriations.)

200
175

672
640

472
465

Provides funds for carrying out Governmentwide automatic
data processing activities.

-218

-123

-128

-5

(Volume of receipts declines as liquidation continues.)

-494
(20.722)

-500
(15,647)
B (361)

-600
(16,094)

-100
(86)

905 NOA
Exp.

100
264

100
100

200
175

100
75

NOA
Exp.

2,462
1,537

2,218
1,614

2,807
2.047

589
433

Allowances and expenses for Mrs. NOA
Jacqueline Bouvier Kennedy Exp.
903
Refunds under Renegotiation Act Exp.
(interest)..
905

25

Salaries and expenses, automatic NOA
data processing coordination Exp.
905
Public enterprise funds:
Reconstruction Finance Corpora- Exp.
tion liquidation fund
905

d
Q

>
F

CO

Administrative operations fund_905 Exp.
Limitation on use of fund.
Working capital fund..
Total, general activities




}

Request provides capital to support operation of printing and
reproduction facilities.

617,671 !!

Subtotal, General Services NOA
Administration.
Exp.

623,676

Less: Court facilities and furnish- NOA
ings items transferred to The Exp.
Judiciary (contra)
905

1,031

Total, General Services Ad- NOA
ministration.

616,640

1,344

Exp.

622,332

589,915 ]
A
3,700
B
2,042
596,013 {
^3,700
1,560
1,864

629,500

33,843

634,993

35,280

1,849
25005

289

627,651

33,554

632,881 1

35J39

1

588,355 |
A
3,700
B
2,042
592,214 ]
A
3,700 [
3
1,935

J
I

B

107

141

f

w

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
General and special funds:

Research and development

251

NOA4,360,049
Exp.
3,984,456

D

101,500
300,000

NOA 623,253
577,546
Exp.

611,820
585,000

D

663,900 |
660,000

Administrative operations

251

Total, National Aeronautics NOA
and Space Administration. Exp.

D

o
4,246,600
4,340,000

60,000
495,000

251 NOA
Exp.

B

D

266,426
530,902

Construction of facilities

A

4,503,104
4,520,000

5,249,727
5,092,904

5,174,924
5,600,000

5,012,000
5,300,000

Proposed for separate trans mittal, other than pay increase supplemental.
Proposed for separate transmittal, civilian pay increase supplemental.
To carry out authorizing legislation to be proposed,




3
O

-256,504
-180,000

Decrease is a result of the near completion of funding for the
Gemini program; reduced requirements for Surveyor, Orbiter,
Centaur Launch Vehicles, and Launch Vehicle Procurement;
as partially offset by an increase for operation of worldwide
tracking networks.

41,500
-195,000

4

Increase results from new facilities necessary to support continuing programs.

52,080
75,000

S3

Increase provides additional personnel and support for the Apollo
program and the planned staffing of the Electronics Research
Center.

-162,924
-300,000
00

to

00

00

to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

ucLuutl

1966

1967

Increase or
decrease ( - )

Explanation of NOA requests

VETERANS ADMINISTRATION
General and special funds:
General operating expenses_ _ _ 805 NOA

159,330

-1,897

161,322

160,227
B
1,000
161,032

158,685

-2,347

The decrease is due to increased productivity, a small decline in
workload, savings from the recent reorganization of field
installations, and other management improvements.

Medical administration and mis- NOA
cellaneous operating expenses Exp.
804

14,896
14,118

13,496
13,649

14,217
14,000

721
351

Increase provides for strengthening administration of medical
program.

Medical and prosthetic research NOA
804

37,783

40,893
B
365
42,600

43,629

2,371

The increase provides for program growth as part of planned
development of activity.

43,000

400

1,191,950
B
17,456
1,201,592

1,265,437

56,031

1,245,000

43,408

2,174,200
A
136,953
2,174,200
A
136,900

2,309,202

-1,951

2,306,947
A 53

-4,100

1,982,649

-18,587

1,977,964
A36

-23,200

Exp.

Exp.
Medical care

804 NOA
Exp.

Compensation and pensions:
(Veterans service-connected NOA
compensation)
801
Exp.
(Veterans non-service-connected NOA
pensions)
802
Exp.




162,870

37,055
1,154,409
1,137,599
2,176,200
2,176,200
1,863,900
1,863,744

1,900,300 I
M00,936
1,900,300
A
100,900

The increase provides for activation of 5 new hospitals, new
types of medical services in existing hospitals, and increased
staffing and equipment to improve quality of care.
Supplemental in 1966 is for increases in caseload and in average
annual payments. The decrease in 1967 anticipates a slight
decline in caseload.
The 1967 decrease is due to a slight decline in number of veterans
receiving pension. The 1966 supplemental is for increases in
average annual payments.

(Other veterans benefits and NOA
services) _„
_-- 805
Exp.

69,200

Total, compensation and NOA
pensions.
Exp.

4,109,300

Readjustment benefits

803 NOA
Exp.

Veterans insurance and indemni- NOA
ties
805
Permanent, indefinite, special NOA
fund.
Exp.
Grants to the Republic of the NOA
Philippines
804 Exp.
Construction of hospital
domiciliary facilities

and NOA
804 Exp.

69,200

4,109,144
48,850
49,424

A
B

-35,462 The 1966 supplemental primarily covers costs of one-time death

79,989

-37,600

4,142,000 1 4,374,000
A
288,000
4,142,000
4,364,900
A
A100
287,900

-56,000

36,500
A5,000
37,876
A5.000

42,400
100»00C
42,000
A90.000

A

gratuity provided by Public Law 89-214 for survivors of
specified veterans.

-64,900
100,900 | The supplemental in 1966 and increase in 1967 will fund recent
legislation liberalizing the vocational rehabilitation program
89,124
for disabled veterans and increasing educational allowances
for war orphans and children of totally disabled veterans.
The 1967 supplemental will provide educational and training
benefits for those who have recently completed military service.

14,450

9,900

3,500

-6,400

644
22,067

650
17,770

670
12,650

20
-5,120

The decrease results from lower payments to the National service
life insurance fund and completion of payments to beneficiaries
of servicemen who died prior to Jan. 1, 1957.

100
11

H
>

o
©

386

386
386

90,512
83,200

52,125
73,000

-38,387
-10,200

Proposal for 1967 provides for the seventh increment of a $1.2
billion program for modernization of medical facilities, and for
planning and construction of research facilities.

2,500
500

386
360
98,103
80,558

Grants for construction of State NOA
nursing homes_„
804 Exp.
Construction—Corregidor-Bataan NOA
Memorial
...805 Exp.

82,149

67,500
50,lll
67,500
A50.100
A

4,000
875

1,500
375

Provides for grants to States to construct nursing home facilities
for care of war veterans.

386

-1,400

1,400

250

Estimate is for medical care and treatment of a daily average of
149 Philippine Commonwealth Army veterans.

1,000

The memorial will be substantially completed in 1967.

750

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




CO

to

o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1967

1966

Increase or

CO

Explanation of NOA requests

VETERANS ADMINISTRATION—Continued
Public enterprise funds:
Canteen service revolving fund

Exp.

-892

-139

-81

58

805
Direct loan revolving fund (authorization to spend debt
receipts):
803
Permanent. _
Current

(Receipts of $57.8 million from canteen sales to hospital patients
and staff approximately offset expenses.)

W
d
NOA
NOA
Exp.

-129,834

-639,906

100,000
-100,000
-194,982

Loan guaranty revolving fund _ 803 Exp.

38,301

-142,712

-85,475

Rental, maintenance, and irepair
of quarters
805

Exp.

-3

Service-disabled
ance fund

Exp.

447

257

-169

-426

(Receipts from premiums and the "insurance and indemnities"
appropriation cover expenditures of $11.7 million, mainly
death claims.)

NOA
803 Exp.

24

25
15

-i

-25
-16

Fund has sufficient capital to eliminate need for additional funds.
(A small volume of claims will be partly offset by repayments.)

veterans J nsur805

150,000

Soldiers' and sailors' civil relief




1

444,924

57,237

New loans decline as World War II veterans entitlement is
expiring. Receipts from sales and unobligated balances allow
cancellation of permanent NOA of $100 million which would
otherwise become available for 1967. (Receipts from mortgage sales more than offset expenditures. Because of high
sales of pool participations in 1966 availability for sale will be
small and sales will decline in 1967.)
(Foreclosures are expected to decline. Receipts from mortgage
sales more than offset expenditures. Because of high sales of
pool participations in 1966 availability for sale will be small
and sales will decline in 1967.)
(Receipts from rental housing offset maintenance costs.)

o

s
3

Veterans reopened insurance fund Exp.
805

-1,711

-5.699

-16,958

-11,259

(Application period for new insurance for disabled veterans
closes in May 1966. Receipts exceed payments.)

Veterans special term insurance Exp.
fund
805

-26,958

-28,721

-28,941

-220

(Premium and interest income continue to exceed death and other
payments.)

Vocational rehabilitation revolv- Exp.
ing fund
.805

—i

(Repayment of loans by trainees are expected to cover new loans.)
-762

-579

Servicemen's group life insurance Exp.
fund
805

-183

(This new program for men in uniformed service is contracted to
private insurance companies. Receipts of $73 million more
than offset expenditures.)

3

I ntragovern mental funds:

Total, Veterans Administra- NOA
tion.

5.690.439 )
A
293,000 \
B
18,821
4.866,208
^292,900
B
18,365

5,791.791

Exp.

273

S,202

805 Exp. -3.087

Supply fund

5,487,944

-929

5,959,694 j
M00,000

57,434

5,627,944 1
^90,100
B
456

(Fund is estimated to net near zero on volume of $93 million.)

541,027

OTHER INDEPENDENT AGENCIES

I
tt
4

ADMINISTRATIVE CONFERENCE OF
THE UNITED STATES
General and special funds:

Salaries and expenses

250
248

250
248

___908 NOA
Exp.

Provides for establishment of a conference to improve and develop procedures under various administrative laws.

ALASKA TEMPORARY CLAIMS
COMMISSION
Salaries and expenses
A
B

910 NOA
Exp.

33
5

(The Commission completed its work in 1965.)
—

-

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




CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars) —Continued
1965
enacted

Account and functional code

1966
estimate

1967

Increase or
decrease(—)

Explanation of NOA requests

CO

00

OTHER INDEPENDENT AGENCIES—Continued
AMERICAN BATTLE MONUMENTS
COMMISSION
General and special funds—Continued
Salaries and expenses
805 NOA
Reappropriation
_ NOA
Exp.

1,816
32
1,901

2,148
32

Construction of memorials and Exp.
cemeteries
805

51

11

Total, American Battle Mon- NOA
uments Commission.
Exp.

1,848
1,952

2,180
2,183

2,092
2,062

-88
-121

400
88

6,985
5,925

6,500
6,775

-485
850

Provides for continuation of sea level canal feasibility studies, to
be completed June 30, 1968, under existing law.

354

675

1,290

615

(Major expenditures are for construction of facility designed for
classified printing.)

11,096

10,923
B
240
11,116

12,222

1,059

Increases are mainly for planning and research studies, accident
investigation, and a new aircraft.

12,134

1,018

2,172

i

2,092

-88

2,062

Decrease reflects completion of design work and dedications, as
well as fewer home leave trips.

-110

-11

d

(Account is available only to pay old obligations.)

ATLANTIC-PACIFIC INTEROCEANIC
CANAL STUDY COMMISSION
Salaries and expenses__

_502 NOA
Exp.

CENTRAL INTELLIGENCE AGENCY
Construction. _

905 Exp.

CO

CIVIL AERONAUTICS BOARD
Salaries and expenses




_ _ 508 NOA
Exp.

11,205

i

Payments to air carriers:
Contract authorization (perma- NOA
nent, indefinite)
501
Liquidation of contract authorization.
Exp.

86,786

81,631

74,650

(84.432)
80.423

(81,170)
79,450

(67,000)
73,085

Aeronautics NOA

97,882

Exp.

Total, Civil
Board.

91.627

92,554 1
»240
90,566

-6,981

Airline subsidies are expected to decline in 1967 and helicopter
subsidies are terminated.
(-14,170) (Appropriation for 1967 liquidates that part of subsidy contract
obligations for which payments are due during the year.)
-6,365

86,872

-5,922

85,219

-5,347

22,172

-3,591

CIVIL SERVICE COMMISSION
906 NOA

22,696

Exp.

Salaries and expenses

22.436

24,500 1
A 720
B543
24,850
A
610

Limitation payable under trust
funds.
Investigation of U.S. citizens for NOA
employment by international
organizations
908 Exp.
Annuities under special acts

906 NOA
Exp.

600

22,226 1
AHO
(6,160)

600 \
-15
581

Decrease reflects transfer of the related administrative costs to
the civil service retirement and disability fund, partially offset
by expansion of executive manpower and wage board functions.
-3,124
The 1966 supplemental will provide for unanticipated increases
in investigations and retirement claims.
(6,160)

1,650
1.661

Government payment for annu- NOA
itants, employees health bene- Exp.
fits
906
Government payment for annu- NOA
itants, employees health benefits Exp.
fund
906

620

1,550
1,559

1,455
1,463

-95
-96

Decrease results from smaller number of Panama Canal annuitants.

31,730
31,730

2,510
2,510

o

39

This appropriation is a consolidation of the 2 following ones.
Estimate reflects an increase of 43,000 participating annuitants.

B

12,210
12.210

Government contributions, retired NOA
employees health benefits fund Exp.
906

57

29,220
29,220

461

642

tr1

The increase results from expanded workload.

Q

14,800
14,800

A
B

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




(These appropriations have been consolidated into the preceding
one.)

to
CD

CO

00

o
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1967

1966

Explanation of NOA requests

Inc

e(-)

OTHER INDEPENDENT AGENCIES—Continued

W

CIVIL SERVICE COMMISSION—Con.

d

General and special funds—Contiriued

Payment to civil service retire- NOA
ment and disability fund 906 Exp.

w

65,000
65,000

67,000

73,000
73,000

67,000

6,000
6,000

Estimate is to pay increased costs of additional benefits enacted
in 1963.

o
o

Trust fund:

(274)

Limitation on administrative expenses, employees life insurance
fund.

(279)
B(6)

Intragovernmental funds:

Investigations (revolving fund) Exp.
906
Advances and reimbursements.906 Exp.
Total, Civil Service Commis- NOA
sion.

1"

264

563

-•

(-285)

-84

-348

128,999

(This limitation has been consolidated into the salaries and expenses appropriation.)

4,881

(This fund finances, on a reimbursable basis, security investigations performed at the request of other agencies.)

-18
116,956

122,870 |
A

720
528
123,474
A
610
B

Exp.

117,112

128,955 |

4,981

COMMISSION OF FINE ARTS

Salaries and expenses.




555 NOA
Exp.

120
95

123

115

115
115

-8

Advises the President, Congress, and department heads on matters of architecture, sculpture, and painting.

l

65
o

COMMISSION ON CIVIL RIGHTS
Salaries and expenses

908

NOA

1,280

1,487 ]
A
442
B

Exp.

1,151

26

1,450
A
173

1

748

2,703

2,623 ]
A
269 f

1,269

Supplemental provides for initiation of a study of discrimination
in education. The increase provides primarily for assumption
of responsibilities from the Community Relations Service, additional field investigations and hearings, and expansion of the
Commission's clearinghouse services.

COMMISSION ON INTERNATIONAL
RULES OF JUDICIAL PROCEDURE
Salaries and expenses

910

NOA
Exp.

25

(This Commission expired on Dec. 31, 1965.)

a

-25

25

EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
Salaries and expenses

652

NOA

2,250

2,750 1
B

29

Exp.

I

52

3,071
A
632

5,870

2,378

5,743 1

2,098

A

58

1

Supplemental in 1966 provides additional staff to meet a higher
workload relating to investigating complaints of discrimination
in employment and to initiate a program to achieve voluntary
compliance with the Civil Rights Act. The full-year cost is
reflected in 1967 as well as a new Federal-State program for
promoting voluntary compliance.

O
O

EXPORT-IMPORT BANK OF
WASHINGTON
Public enterprise funds:

Export-Import Bank of Washing- Exp.
ton fund
,. 152
Limitation on operating expenses.
Limitation on administrative
expenses.
A
B

-357,231

-531,521

-308,950

222,571

(1,350,060)

(1,186,120)

(2,108,241)

(922,121)

(4,134)

(27)

!
I

(Increased expenditures in 1967 reflect larger disbursements of
loans and a slight decline in sales of assets, partially offset by
an increase in net loan repayments.)

3

i

(3,915)

(4,052) }
B
(55)f

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




CO

00
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

Increase or
decrease(—)

1967

to

Explanation of NOA requests

O T H E R INDEPENDENT AGENCIES—Continued
FARM CREDIT

ADMINISTRATION
d

Public enterprise funds—Continued

Revolving fund for administrative Exp.
expenses _ _ __
352
Limitation on administrative
expenses.

99
(2,931)

50

-50
032)

(2,990)

(Activity is financed by assessments collected from the banks in
the farm credit system. The increase in 1967 reflects the
(H)
annualization of pay costs.)

B(28)

investment Exp.
352

3,375

3,290

500

-2,790

(Expenditures represent Government investment in Federal
intermediate credit banks and production credit associations.
The reduction in 1967 mainly reflects the annualized impact
of recent legislation changing the Federal intermediate credit
banks' debt-to-capital ratio, thereby reducing the need for
Government capital.)

Banks for cooperatives investment Exp.
fund
.352

-20,287

-13,498

- 8 , 935

4,563

(Negative expenditure represents a return of capital previously
invested in banks for cooperatives.)

Total, Farm Credit Adminis- Exp.

-16,813

-10,258

- 8 , 435

1,823

61

-12

61

-15

Short-term
fund

credit

FEDERAL COAL MINE SAFETY BOARD
OF REVIEW
General and special funds:

Salaries and expenses.




652 NOA

70

Exp.

66

72
l
76

B

i

Decrease results from saving in administrative costs under a
contract with General Services Administration.

FEDERAL COMMUNICATIONS
COMMISSION

i

508 NOA

16,947

16,955
B
346

17,520

219

Exp.

Salaries and expenses

16,747

17,146

)7,U0

24

I

FEDERAL DEVELOPMENT PLANNING
COMMITTEES FOR ALASKA
Salaries and expenses

507 NOA

Exp.

Estimate continues the 1966 program for the regulation of interstate and foreign commerce in communications by wire and by
radio.

15

174
150

190
170

16
20

Committees will develop and coordinate plans for the economic
development of Alaska.

-166

4]

207

(Increase in administrative and supervisory expenses, paid from
fees, charges, and assessments, is due to the larger number of
institutions projected and the gi"owth in total assets.)

FEDERAL HOME LOAN BANK BOARD
Public enterprise funds:

Federal Home Loan Bank Board Exp.
revolving fund
551
Limitation on administrative
and nonadministrative expenses.
Federal Savings and Loan Insur- Exp.
ance Corporation fund 551
Limitation on administrative
expenses.

133 |
(16,948)1

(760)

(17,040)
B
(75)

h3
W

o

-204,698!
(233)

!

(233)
B
(6)f

(285)j

Home Owners' Loan Corporation Exp.
fund
551
Total, Federal Home Loan Exp.
Bank Board.

-89,747

-262,070 | -351,817

(46)!

-262,234

2,946

p

2

(Expenditures are for interest on matured bonds.)

2
204,564

(Premiums and other receipts are expected to increase and will
continue to exceed costs.)

>

-351,774 i -89,540

3,105
B
68
3,152

FEDERAL MARITIME COMMISSION
General and special funds:

Salaries and expenses

B

508 NOA
|
Exp. i

2,857

Proposed for separate transmittal, civilian pay increase supplemental.




3,475

302

3,308

Increase provides funds for staff to handle the expanding regulatory workload.

156
CO
CO
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
CO

Account and functional code

1965
enacted

1966
estimate

Increase or
decrease(—)

1967

Explanation of NOA requests

00

OTHER INDEPENDENT AGENCIES—Continued
FEDERAL MEDIATION AND
CONCILIATION SERVICE
652

NOA

6,334

Exp.

Salaries and expenses

6,284

6,604 1
B
115
6,603

7,100

381

7,077

474

Increase provides for expansion of preventive mediation and for
more intensive mediation of labor-management disputes involving defense plants.

FEDERAL POWER COMMISSION
401

NOA

12,974

13,230 1
B
300

14,288

758

Exp.

Salaries and expenses

12,992

13,495

14,271

776

71
71

71
71

Payments to States under Federal
Power Act (permanent, indefinite, special fund)
401

NOA
Exp.

71
124

Total, Federal Power Commission.

NOA

13,045

Exp.

13,116

13,301 1
B300
13,566

Increase is primarily for analysis of electric power systems,
implementation of gas producer area rate decisions, and to
maintain regulatory programs on a current basis.
States must be paid 37.5% of license receipts from hydroelectric
projects in national forests and public lands.

14,359

903

FEDERAL
RECONSTRUCTION
DEVELOPMENT PLANNING
MISSION FOR ALASKA
Salaries and expenses _




507

4

g
>

CO
OS

166
113

NOA
Exp.

131
125

-35
12

The Council advises the President on radiation matters affecting
health.

AND
COM-

Exp.

ft)

776

FEDERAL RADIATION COUNCIL
Salaries and expenses

o

758

14,342

d
0

48

(Commission has completed its work.
Sept. 1965.)

Final report issuec

I ntragovern mental funds:

23

Advances and reimbursements .507 Exp.

72

Total, Federal Reconstruct Exp.
tion and Development Planning Commission for Alaska,
FEDERAL TRADE COMMISSION
General and special funds:

Salaries and expenses

508 NOA

13,459
13,662

Exp.

13,548
B
312
13,752

FOREIGN CLAIMS SETTLEMENT
COMMISSION

14,009

149

13,991

239

I
1J14
1,558

1,915
1,819

Payment of Philippine war damage Exp.
claims
151

33,488

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

1,714
35,047

1,915

ft)

33

Salaries and expenses

151 NO V
Exp.

GENERAL ACCOUNTING OFFICE
Salaries and expenses

B

1,852

2,000
1,984

85
165

Increase is to accelerate General War Claims program, initiate
Yugoslav program, and intensify Cuban program.

-33

(Completion of program in 1965 and transfer of $28 million of
unobligated balance to the Philippine education program.)

2,003
1,984

85
132

48,800

1,279

48,930

| o
a
w

1,305

|

904 NOA
Exp.

Estimate continues the 1966 program for regulation of commercial
enterprises to prevent the growth of monopolies and unfair and
deceptive trade practices.

46,635
44,948

46,486
1,035
47,625

B

Increase is for extended audit coverage, partially offset by decreases in other employment.

Proposed for separate transmittal, civilian pay increase supplemental.




GO
On

CO

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

Increase or

1967

1966

o

Explanation of NOA requests

OTHER INDEPENDENT A G E N C I E S — C o n t i n u e d
HISTORICAL AND MEMORIAL COMMISSIONS

W

d
o
(The Commission has completed its work.)

Battle of Lake Erie Sesquicenten- NOA
nial Celebration Commission EXD.
910

14
14

Battle of New Orleans Sesquicen- NOA
tennial Celebration Commis- Exp.
sion.
910

25
2

23

-23

Civil War Centennial Commis- NOA
sion
910 EXD.

100
83

100
114

-100
-114

Corregidor-Bataan Memorial NOA
Commission.
_805 Exp.

25
24

25
25

35
36

10
11

Increase is to plan memorial documentary film and locate historical places for marking. Commission expires in May 1967.

Franklin Delano Roosevelt Me- NOA
morial Commission
910 Exp.

20
9

80
92

60
83

The Commission is formulating revised plans for a memorial.

8

James Madison Memorial Com- NOA
mission
910 EXD.

10
9

1

-10
-8

Lewis and Clark Trail Commis- NOA
sion
910 Exp.

25
25

25
IS

s

U.S. Territorial Expansion Memo- Exp.
rial Commission _ . . . __ 910




1

(The Commission will complete its work in 1966.)

3

(The Commission will terminate in 1966.)

The Commission is formulating plans for a memorial.
The Commission is concerned with long-range conservation and
recreational aspects of the trail.

-3

(The Commission is concerned with the development of the
Jefferson National Expansion Memorial.)

f

(The Commission is expected to complete its work in 1966.)

Woodrow Wilson Memorial Commission
910

3

6

Total, historical and memorial commissions.
o
o
o

Exp.

NOA
Exp.

164
135

180
214

140
154

-40
-60

335
303

347
347

438
438

91
91

Increase is primarily to expedite the disposition of claims.

410 |
B
5
395

428

13

418

23

Estimate provides for additional research assistants to work with
representatives of Federal, State, and local governments on
studies of intergovernmental cooperation.

1,110
1,100

1,110
100

-6

INDIAN CLAIMS COMMISSION
Salaries and expenses

902

NOA
Exp.

INTERGOVERNMENTAL COMMISSIONS
Advisory Commission on Intergovernmental Relations: Salaries
and expenses
910

NOA

410

Exp.

422

Appalachian Regional Commission: Salaries and expenses..507

NOA
Exp.

1,290
40

1,000

The Commission develops, plans, and coordinates the comprehensive program for regional economic development in
Appalachia. The agencies listed will spend the following
amounts pursuant to special authority in the Appalachian
Act (in millions of dollars) :

NOA

Agriculture
Commerce
Defense—Corps of Engineers
Health, Education, and Welfare
I nterior
Appalachian Regional Commission
Total
B

Proposed for separate transmittal, civilian pay increase supplemental.




ited
appropriatec
and requester
1965-67
12.9
415.5

o
o

Expenditures
1966

1967

7.4 5,2
25.0 121.2
1.3

1.6

3.3
45.5
29.3

3.9
1.7

12.7
14.0

2.4

1.0

508.8

3
o

40.3 155.8
CO

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1967

1966

Explanation of NOA requests

Inc

e(-)

i

OTHER INDEPENDENT AGENCIES—Continued

w
w

INTERGOVERNMENTAL
COMMISSIONS—Continued

d

General and special funds—Continued

250
44

200
357

49

-200
-308

Activity of the Commission will end in 1967 with submission
of its report, due Sept. 30, 1966.

44
39

44
44

45
45

1
1

This appropriation provides for expenses of the U.S. Commissioner, his alternate, and assistant.

401 NOA
Exp.

92
92

96
96

115
115

19
19

This represents the Federal share (about 24%) of the distributed
net annual expense budget as adopted for 1967 by the Commission.

Total, Delaware River Basin NOA
Commission.
Exp.

136
131

140
140

160
160

20
20

Interstate Commission on the NOA
Potomac River Basin: Con- Exp.
tribution ._
555

5
5

5
5

5
5

Total, intergovernmental NOA
commissions.
Exp.

2,091

Commission on the Status of NOA
Puerto Rico: Salaries and ex- Exp.
penses
910
Delaware River Basin Commission:
Salaries and expenses
401 NOA
Exp.
Contribution




642

755 j
B
5
1,897

CO

The United States contributes $5 thousand annually for the
Commission's efforts to reduce pollution.

1,703

943

1,732

-165

! ft

INTERSTATE COMMERCE
COMMISSION
Salaries and expenses

508 NOA
Exp.

26,715
26,491

26,915 1
B
625
27,268

27,759

219

27,745

Estimate continues 1966 program for regulation of rail, motor, and
water carriers and freight forwarders.

477

NATIONAL CAPITAL HOUSING
AUTHORITY
Operation and maintenance of NOA
properties
555 Exp.

37
39

37
37

37
37

Rent receipts ($39 thousand for 1967) are deposited in the general fund.

NATIONAL CAPITAL PLANNING
COMMISSION
Salaries and expenses

555 NOA
Exp.

O

696
637

800 1

1,144

276

18
887 1
A

1J44

207

6,100
3,572

6,100
2,475

A
50
B

J

50 I

Land acquisition, National Capital NOA
park, parkway, and playground Exp.
system
555

550
907

1,097

Land acquisition, John F. Ken- NOA
nedy Center for the Performing Exp.
Arts
704

2,175
1,994

153

Total, National Capital Plan- NOA
ning Commission.

3,421

Exp.

3,538

A
B

F
W

Estimate provides matching funds for completion of the George
Washington Memorial Parkway on both banks of the Potomac
River: $2.9 million for the Parkway in Maryland and $3.2
million for the Parkway in Virginia.
Land acquisition is scheduled to be completed in 1966.

a

-153
O
l

800 ]

7,244

6,376

18
2,137 1
A 50

4,716

2,529

A
50
B

J
f

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




Supplemental provides for publication of the 1985 Plan for Washington, D.C., and for related reports. The 1967 estimate
provides for increased workload, implementation of the 1985
Plan, the identification and preservation of landmarks, and
planning the redevelopment of Pennsylvania Avenue.

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)— C o n t i n u e d
1965

o

Increase or
decrease ( - )

1967

1966

CO

Explanation of NOA requests

OTHER INDEPENDENT A G E N C I E S - C o n t i n u e d
NATIONAL CAPITAL TRANSPORTATION AGENCY

w

Genera! and special funds—Continued

Salaries and expenses

555 NOA
Exp.

425
800

1,575
1,325

1,150
525

Increase provides additional staff to handle engineering and design
contracts for the rail rapid transit system.

3,679
2,700

17,055
9.125

13,376
6,425

Estimate provides for financial studies, engineering and design
contracts, acquisition of land and rights-of-way, and purchase
of construction material necessary to continue development of
the rail rapid transit system.

617

4,104
3,500

18,630
10,450

700
408

1,500
1,492

100

-1,500
-1,392

S25
134

691

Construction, rail rapid transit NOA
system
555 Exp.

Land acquisition and construe- Exp.
tion
555
Total, National Capital Trans- NOA
portation Agency.
Exp.

w
d
o

14,526
6,950

562

54

a

NATIONAL COMMISSION ON FOOD
MARKETING
Salaries and expenses

. _ 355 NOA
Exp.

The Commission will complete its study and appraisal of the
marketing structure of the food industry and report to the
President and the Congress by July 1, 1966.

NATIONAL COMMISSION ON
TECHNOLOGY, AUTOMATION, AND
ECONOMIC PROGRESS
Salaries and expenses




_652 NOA
Exp.

-691

(The Commission will submit its final report to the President
and the Congress infiscalyear 1966.)

O5

NATIONAL COUNCIL ON THE ARTS
Salaries and expenses

704

NOA
Exp.

50
25

23
47

-23
-47

Has been merged with the National Endowment for the Arts in
the National Foundation on the Arts and the Humanities.

9,203

Increase provides for initiation of grants to State arts councils
and expansion of support for the arts and the humanities.

NATIONAL FOUNDATION ON THE
ARTS AND THE HUMANITIES
Salaries and expenses
Indefinite

5,727
1,000
1.500

704 NOA
NOA
Exp.

13,930 1
2,000
8.400

6,900

30,442

1,791

30.270

1.773

2,085

8

2.085

20

525,000
425,000

45,319
60,000

I

NATIONAL LABOR RELATIONS
BOARD
Salaries and expenses

652

NOA
Exp.

26,158
25,221

28,103 1
B
548
28.497

Increase is to deal with continuing increases in unfair labor
practice charges and in representation petitions.

NATIONAL MEDIATION BOARD
Salaries and expenses

652

NOA
Exp.

2,022
1.892

2,050 1
B
27
2,065

Provides for mediation and arbitration assistance to labor and
management in the railroad and airlines industries.

3
O

NATIONAL SCIENCE FOUNDATION
Salaries and expenses

703

NOA
Exp.

420,400
310.689

Year Exp.
703

-23

Advances and reimbursements _ 703 Exp.

-1.773

Total, National Science Foun- NOA
dation.
Exp.

420,400
308.892

479,681
365,000

International

Geophysical

I ntragovern mental funds:

B

479,681
365,000

Proposed for separate transmittal, civilian pay increase supplemental.




525,000
425,000

45,319
60,000

Increases for basic research grants and related facilities will support scientific activities at a greater number of academic
institutions. Special emphasis is being given to strengthening
the quality of scientific and engineering research and education.

!

3
o
!

i 00

to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

I

Account and functional code

1965

1967

1966

OTHER INDEPENDENT

Increase or
decrease ( - )

Explanation of NOA requests

AGENCIES—Continued

PRESIDENT'S ADVISORY COMMITTEE
ON LABOR-MANAGEMENT POLICY
General and special funds:

President's Advisory Committee NOA
on Labor-Management Policy Exp.
652

150
106

150

-150

145

-136

The Committee will be supported by regular resources of the
Departments of Labor and Commerce.

PRESIDENT'S COMMISSIONS ON LAW
ENFORCEMENT AND THE ADMINISTRATION OF JUSTICE AND ON
CRIME IN THE DISTRICT OF COLUMBIA
Salaries and expenses_

900
835

_908 NOA
Exp.

600
665

-300
-170

The Crime Commissions will complete their investigations of
crime and delinquency in the United States and in the District
of Columbia.

157
669

Increase is for staff and contract services in the Commission's
1st full year of activity.

PUBLIC LAND LAW REVIEW
COMMISSION

Salaries and expenses

401

RAILROAD RETIREMENT

Payment
credits

for military




NOA
Exp.

350

750
613

907
1,282

BOARD

service NOA
659 Exp.

13,834
13,834

16,558
16,558

17,201
17,201

643 Funds are provided for the 3d of 10 annual installments to pay

643 !

the retirement account for military service of railroad workers.

Trust fund:

Limitation on salaries and expenses.

(10,700)

(10,650)
A
(850)
B
(225)

1

01.175)

(-325) Supplemental is to finance program of health insurance for the
aged and other 1965 amendments to Railroad Retirement and
Social Security Acts. Decrease because of nonrecurring work
more than offsets increase for management of hospital and
medical insurance for aged.

RENEGOTIATION BOARD
General and special funds:

Salaries and expenses

904 NOA
Exp.

2,600
2,650

2,500 I
B
30
2,516

2,477

—53
-53

2,485

-31

100

Decrease results from management improvements.

-1,100

SAINT LAWRENCE SEAWAY
DEVELOPMENT CORPORATION
Public enterprise funds:

Saint Lawrence Seaway Develop- Exp.
ment Corporation fund___502
Limitation on administrative
expenses.

904
(470)

1,200
(490)

(515)

(Operating costs and interest will be financed from revenue of
$6.5 million. Additional construction will befinancedby
borrowing of $0.1 million from the Treasury.)
(25)

SECURITIES AND EXCHANGE
COMMISSION
General and special funds:

Salaries and expenses

508 NOA
Exp.

15,442
15,276

16,442
16,280

17,550
17,570

1,108
1,290

Increase is primarily to handle additional workload resulting
from the Securities Acts Amendments of 1964.

51,940

-9,852

51,955 1

059 NOA
Exp.

43,211

49,111 1
A
ll,594
B
902
C
185
49,630
A
10,600

-7,281

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




4

i
3

47,838

A
B
c

o
o

Supplemental in 1966 is to meet increased induction calls, which
are now estimated at about 360,000. Inductions in 1967 are
currently estimated at about 160,000.

SELECTIVE SERVICE SYSTEM
Salaries and expenses

>

A994

00
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate

1967

Increase or
decrease ( - )

Explanation of NOA requests

OTHER INDEPENDENT AGENCIES-Continued
SMALL BUSINESS ADMINISTRATION
General and special funds—Continued
Salaries and expenses
506 NOA
Exp.

7,065 1
B
150
6,421

6,658

Trade adjustment loan assist- Exp.
ance
506
Grants for research and management counseling
-06 Exp.
Public enterprise funds:
Revolving fund

506 NOA
Exp.

12
8




7,392

971

1,000

950

7

-7

145,000
236,221

Revolving fund, lease guarantee NOA
506 Exp.

Total, Small Business Admin- NOA
istration.
Exp.

1,185

Increases are for procurement and management assistance, creation of a field staff to aid small business development centers,
and initiation of a newly designed research program.
(Balance of 1964 appropriation will be used primarily to make
loans to firms injured by U.S.-Canadian auto parts treaty.)

d
a

3
3

A

Fntragovernmental funds:
Advances and reimbursements_506 Exp.

8,400

50

7,486

305,000
298,832
-350,000

A

5,000
-107
-139

317,065
B
150
305,404
A
—350,000

-214

215

152,486

51,736
-383,292

242,922

-305,000
-280,388
-5,000
-107

(The negative expenditure results from investment of fund in
Government obligations.)

t1

Proposed legislation to authorize sale of participations in pools
of loans held by SBA will providefinancingfor program.

-215
8,400
A

(Program was completed in 1960.)

GO
O

-308,815

59,914
—383,292

-278,782

CO

SMITHSONIAN INSTITUTION
General and special funds:

704

NOA

15,540

Exp.

Salaries and expenses

15,716

Museum programs and related re- NOA
search (special foreign currency Exp.
program)
704

18,468 1
A
166
B
287
19,134
A
161

23,437

4,516

21,933 1
A
5

2,643

1,300
1,170

5,700
4,900

4,400
3,730

Increase in 1967 provides for staffing the new fine arts and
portrait galleries and other new exhibit space. Educational
and scientific activities will be expanded. Supplemental is
for wage board increases.

Provides for an expanded program of grants of excess foreign currencies to American institutions for research, excavation, and
preservation.

Remodeling of Civil Service Com- NOA
mission Building
704 Exp.

1,000
1,046

5,157

319

-4,838

(The building is being remodeled for use as an art gallery which is
scheduled to open in 1967.)

Construction and improvements, NOA
National Zoological Park. _ _ 704 Exp.

1,525
621

1,539

2,4\8

1,589
1,257

50
-1,161

Provides for construction of a multiclimate animal facility and
planning of future facilities.

National Air and Space Museum NOA
704 Exp.

1,364
942

312

Restoration
buildings

and renovation

of NOA
704 Exp.

(Planning was completed in 1965.)

2,248
131

Museum of History and Tech- Exp.
nology
704

654
4,726

1,423

Salaries and expenses, National NOA
Gallery of Art
704

2,227

2,392

2,300
1,175

2,065

Additions to the Natural History Exp.
Building
704

-312

Exp.
A
B

-2,065

Provides for renovating Old Court of Claims Building as an art
gallery and planning of future facilities.
(The building was completed in 1964.)

o
328

-1,095

2,465 1
A24

2,765

234

2,532
A
23

2,747 |

193

(Construction of the west wing will be completed in 1966.)

3

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




52
1,044

o
o

The increase provides primarily for additional protection of art
objects and repairs on building and ventilating system. The
supplemental is for wage-board increases.

00
Cn

CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966

I

1967
estimate

Increase or
decrease(—)

Explanation of NOA requests
I

OTHER INDEPENDENT AGENCIES—Continued

W
SMITHSONIAN INSTITUTION-Con.
General and special funds—Continued

(Construction will start in 1966.)

15,500
1,843

6,000

10,000

4,000

Advances and reimbursements, Exp.
Smithsonian Institution
704

46

36

20

-16

Total, Smithsonian Institu- NOA
tion.

37,156

35,791

a
is

9,252

John F. Kennedy Center for the NOA
Performing Arts
704 Exp.
Intragovernmental funds:

Exp.

27,986

26,020 1
M90
B
329
40,378
A 184

42,678 j
A6

w

2,122

SUBVERSIVE ACTIVITIES CONTROL
BOARD
CD
OS

General and special funds:

Salaries and expenses

__908 NOA
Exp.

440
409

480
475

280
280

-200
-195

Caseload reduced by the Supreme Court decision that members
of the Communist Party need not register.

3,565

119

Estimate provides for increases in nondiscretionary personnel
costs.

3,551

114

TARIFF COMMISSION
Salaries and expenses




151 NOA
Exp.

3,345
3,271

3,400 |
B
46
3,437

TAX COURT OF THE UNITED STATES

Salaries and expenses

904 NOA

2,183

Exp.

2,087

2,190 1
B
32
2,200

-312

5,000

2,355

133

2,325

15
2

15,000

10,000

Increase will provide additional staff for retired judges being
recalled to duty.

TENNESSEE VALLEY AUTHORITY
Public enterprise funds:

Tennessee Valley Authority fund:
Power proceeds and borrowings Exp.
401

Appropriations and nonpower NOA
proceeds
401 Exp.

47,915
48,249

59,347
52,000

63,635
69,000

4,288
17,000

Total, Tennessee Valley Au- NOA
thority
Exp.

47,915
47,937

59,347
57,000

63,635
84,000

(Power revenues and receipts of $346 million, together with a
net of $75 million from revenue bonds sold to the public and
short-term borrowings from the public and from the Treasury,
will be used to finance power operations and a $147 million
investment in power system facilities. The general fund will
be paid $15 million for reduction of investment and a dividend
of $43.3 million.)

r1

An appropriation of $64 million and $25 million of other receipts
will provide $46 million for construction of flood control, navigation, chemical, and other nonpower facilities, including
initiation of construction of Tellico and Bear Creek multipurpose projects.

4,288
27,000
>

UNITED STATES ARMS CONTROL AND
DISARMAMENT AGENCY

i

General and special funds:

Arms control and disarmament NOA
activities
151 Exp.
A
B

9,000
7,302

9,965
8,900

10,000
9,400

3
5
50
0

Program will emphasize field tests of verification techniques,
development of special sensors, and analysis of Federal seismic capabilities.

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




GO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
snacted

I

Increase or
decrease ( - )

1967

1966

S5
00

Explanation of NOA requests

OTHER INDEPENDENT A G E N C I E S - C o n t i n u e d
UNITED STATES INFORMATION
AGENCY
3

General and special funds—Continued

Increase is primarily for full-year costs of programs expanded in
Southeast Asia in 1966, oversea wage and price increases, and
transfer of Brazilian program from foreign currency account
below.

140,254

142,893
B
1,461

150,693

6,339

139.763

142,378

146,497

4,119

Salaries and expenses (special for- NOA
eign currency program)
153 Exp.

8,200
10,406

11,112
10,738

10,941
10,294

—171 | Foreign currencies excess to U.S. needs supplement the appro—444
priation immediately above and are used to pay local expenses.

Special international exhibitions NOA
153 Exp.

15,000
7,047

3,732
7,027

2,554
6,596

-1,178 Decrease is due mainly to reduction in trade fairs and trade
—431 I missions programs.

Special international exhibitions NOA
(special foreign currency pro- Exp.
gram)
153

400
387

154
296

350
319

Acquisition and construction of NOA
radio facilities
153 Exp.

2,000
6,639

26,205

media guarantee Exp.
153

873

-1

177

Total United States Informa- NOA
tion Agency.
Exp.

165,854

184,096
B
I,461

185,048

-509 j

165,114

170,838

178,778

7,940 !

Salaries and expenses

153 NOA
Exp.

10,400

20,510 j
14,895

196
23

Foreign currencies excess to U.S. needs supplement the appropriation immediately above and are used to pay local expenses.

-5,695
4,495

The 1967 estimate will provide funds to complete a new transmitting facility in Greece.

Public enterprise funds:

Informational
fund




is

178 (The increase is due to net effect of foreign currency purchases.)

i ^

WATER RESOURCES COUNCIL
General and special funds:

Water resources planning

401

200

807

607

185

500

315

full-year funding for Council staff and 2 river basin commissions, and partial-year funding for 1 river basin commission.

2,193
2,000

2,193
2,000

lst-year funding to develop comprehensive water and related
land resources plans.

108

2

-110
-106

(Financing of program transferred to "Salaries and expenses,
Water Resources Council.")

310

NOA
Exp.

3,000
2,502

2,690
2,209

Financial assistance to States 401 NOA
Exp.
River basin commissions

_401

110

NOA
Exp.

Total Water Resources Coun- NOA
cil.
Exp.
Total, other
agencies.

independent NOA

Exp.

293
1,303,454

707,967

-219,895
1,572,031 1 1,373,203
A
13,686
B
7,196
C185
656,492 1 -26,401
632,126 )
A
A
-381,855
-337,751
B
B
6,837 f
359 )
C
185

o
o

1

DISTRICT OF COLUMBIA
General and special funds:

Federal payment to District of NOA
Columbia
555
Exp.

A
B
c

40,720
40,720

46,122
5,700
46,122
A
5,700

A

53,394
11,900
53,394
Ml,900

A

13,472
13,472

Supplemental in 1966 will be submitted for additional Federal
payment within the $50 million authorization. Estimate for 1967 includes $50 million to help defray expenses of
the government of the District and $3.4 million for water and
sewage services to the Federal Government. Supplemental in
1967 is for proposed legislation to base the payment on a
formula reflecting impact of the Federal Government.

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
ucUouul

1965

1966

1967

Increase or
decrease ( - )

Explanation of NOA requests

DISTRICT iDF COLUMBIA—Continued

d

a

General and special funds—Continued

25,725
27,000

1,325
7,000

Loans are 30-year-interest-bearing, to assist in constructing
facilities. The estimate also provides for the District's
share ofjcosts of constructing rail rapid transit system.

11,300

ll,300

7,388
250

Loans are 30-year-interest-bearing, to assist highway construction. Supplemental in 1967 anticipates legislation increasing
loan authority by $35 million.

500
2.500

500

1,500

1,000

Loans are 30-year-interest-bearing, to assist water system construction.

5,000
2,750

3,000

3,000

Federal contribution and loans Exp.
to the Metropolitan area
sanitary sewage works fund.555

500

2,700

1,500

Repayable advances to the Dis- NOA
trict of Columbia general fund Exp.
(permanent, indefinite)
555

50,000

20,000
-26,000

Loans to District of Columbia for NOA
capital outlay, general fund .555 Exp.

20,000
4,000

24,400
20,000

Loans to District of Columbia for NOA
capital outlay, highway fund Exp.

1,400
2,200

n,050

Loans to District of Columbia for NOA
capital outlay, water fund __ 555 Exp.

1,250

Loans to District of Columbia NOA
for capital outlay, sanitary Exp.
sewage works fund_»
555




9,000

3,912

A

A

Loans are 30-year-interest-bearing, to assist construction of
separate storm drainage and sanitary sewers.
-1,200

-20,000
26,000

Temporary advances are made to avoid sale of investments with
later repayments. No advance is contemplated in 1967. The
amount owed was $10 million at the end of 1963, $17 million
at the end of 1964, and $26 million at the end of 1965.

U

o
>

CO

Advances to stadium sinking fund, NOA
Armory Board (permanent, in- Exp.
definite authorization to spend
debt receipts)
555
Total, District of Columbia.. NOA

757
757

832
832

117,952

Exp.

95,191
5,700
59,129
A5.700
A

61,252

832
832

80,451
23,200
88,226
A23.200
A

75 Advances are made to meet interest payments on bonds which
cannot be met from receipts. The advances are repaid when
75
funds are available.
2,760
46,597

SPECIAL ALLOWANCE
Allowance for contingencies.

A

NOA
Exp.

100,000
75,000

A

A 500,000
A
350,000

400,000 The allowance for contingencies is to cover unforeseen needs and
smaller items of proposed legislation. Specific supplemental
275,000
estimates will be transmitted as the need arises.

GRAND TOTALS—ADMINISTRATIVE BUDGET
Total new obligational authority.

106,608,496

Expenditures:
Subtotal.

97,376,770

110,224,581 1122,513,664
14,579,088 A -609,280
B
404,380
c
773,749

-4,077,414

111,304,866
A
2,216,381

6,483,459

A

101,278,561
A

4,659,759
B
382,353
c

754,642

B
c

22,520

1

15,007

Interfund transactions..

-869,865

-647,360

-711,996

-64,636

Total expenditures.

96,506,904

106,427,955

112,846,778

6,418,823

^ 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.




00
C

CO

to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1967
stimate

1966

Increase or
decrease ( - )

Explanation of NOA requests

TRUST F U N D S

o
a

LEGISLATIVE BRANCH
Library of Congress: Gift and trust NOA
fund income accounts
704 Exp.

1,643
1,897

1,819
1,835

2,325
1,830

506
-5

Income of the gift fund and other gifts and receipts are devoted to
advancing the work of the Library.

880
488

936
520

950
550

14
30

Pays annuities to dependents of deceased judges, refunds to
former judges and claims of survivors in certain cases.

770 ,687
(824 ,431)
744 ,553

1,135,850
(859,988)
866,753

1,143,600
(1,003,942)
891,069

THE JUDICIARY
Judicial survivors annuity fund__654

FUNDS APPROPRIATED TO
PRESIDENT
Military assistance:
Military assistance advances. _057
Contract authorization
Receipts to liquidate contract
authorization.
Economic assistance:
Agency for Internationa] Development trust funds
152

NOA
Exp.

THE

NOA
Exp.

NOA
Exp.

1,584
2 ,172

1,500
1,907

1,000
1,000

Office of Economic Opportunity, NOA
gifts and donations
655 Exp.

3

1
1

1




7,750 This program covers sales of defense articles and services to
eligible foreign countries and international organizations.
(143,954)
24,316

-500
-907

-1

These funds are advances by foreign governments to pay for local
costs of development grant and other mutually agreed upon
programs.

3

Peace Corps gifts and donations. 152 NOA
Exp.

228
138

Total, funds appropriated to NOA
the President.
Exp.

772,502
746.864

290
400
1,137,641
869.061

351 Exp.

43

2

354 NOA
Exp.

752
798

884
850

355 NOA
Exp,

29,123
28.224

29,984
29,771

256
256
1,144,857
892.325

- 3 4 Gifts and donations from foreign governments help support the
local program.
-144
7,216
23,264

DEPARTMENT OF AGRICULTURE
Miscellaneous trust funds

-601

-2

(Receipts, primarily from States and local organizations, are
available for work under cooperative agreements with Agricultural Stabilization and Conservation Service.)

950
940

66
90

Receipts, primarily from States and local organizations, are
available for work under cooperative agreements with Soil
Conservation Service.

30,939
30,448

558
290

Fees are used for inspection and grading services of Consumer
and Marketing Service and Agricultural Research Service,
relieving general revenues of this expense. Other receipts are
used under cooperative agreements. The increase is due
primarily to more requests by users of these inspection and
grading services.

-585

1 (Funds of 38 States are administered in insured loan programs
6

Farmers Home Administration Exp.
(trust revolving fund)
352

-1.083

Forest Service: Cooperative work NOA
402 Exp.

28,073
24,043

28,955
27,650

29,955
28,850

57,948
52,025

59,823
57,672

61,844
59,653
=

O

ft

o
o
w

I

1,000 Advances from others are used in cooperative work, such as reforestation, in forests and on land adjacent to forests.
1,200

Total, Department of Agri- NOA
culture.
Exp.

H

1,624
1,594




within those States.)

GO

S3

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
id fui

code

1965

1966

1967

Increase or
decrease ( - )

CO

Explanation of NOA requests

TRUST FUNDS—Continued
DEPARTMENT OF COMMERCE
Bureau of Public Roads highway
trust fund:
503
Contract authorization:
Current:
Existing legislation
Proposed legislation (Forest
and Public lands highways).
Permanent
Current appropriation: Proposed
legislation (Highway beautification).
Receipts to liquidate contract
authorization and finance current appropriations:
(Excise taxes):
(Existing legislation)
(Proposed legislation)
(Interest on investments):
(Existing legislation)
(Proposed legislation)
(Interest on general fund advances.)

1,065,000

100,000

NOA
NOA

2,830,000

3,950,000

3,030,000
A
151,000

-920,000
151,000

(3,658,510)

(3,860,000)

(3,992,000)
A
(389,000)

(11,035)

(5,000)

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 ($57.6 million in 1967). Legislation will be proposed to finance forest and public lands highways and the highway beautification program, including
balances of prior year authorizations, from the Highway trust
fund beginning in 1967.

(521,000)

Exp.

Bureau of Public Roads international
trust funds:
152
Contract authorization
NOA
Current appropriation
NOA
Receipts to liquidate contract
authorization and finance cur- Exp.
rent appropriation.




1,000,000 I 1,032, 250
A
132,250

NOA
NOA

4,026,117

(-1,000)
3,970,085

4,729
1,291
(2,726)
3,282

9,500
(4,093)
8,101

d
o

i

(-2,000)
A(3,000)
(-3,000)
3,970,000
A 110,000

CO

-3,500
6,000
8,875

O5

(-2,000)
109,915

(-4,093)
774

Advances from other countries are used for cooperative work and
technical assistance.

Miscellaneous trust funds, Bureau
of Public Roads:
503
Contract authorization
Current appropriation
Receipts to liquidate contract
authorization and finance current appropriation.

NOA
NOA
Exp.

500

i "

500

(-742)
-692

60
(278)
771

515
(742)
1,192

Other miscellaneous trust funds._506

NOA
Exp.

4,794
4,064

6,727
6,104

5,569
5,867

-1,158
-237

502

NOA
Exp.

1,229
12,846

51,175
22,139

35,470
31,738

-15,705
9,599

Total, Department of Commerce.

NOA

3,907,100

4,117,917

242,872

Exp.

4,047,079

4,007,621

4,077,539 1
A
283,250
4,016,980 |
A
110,000

Advances from other Federal agencies, States, local governments,
and nongovernmental interests are used for special services
requested by those who pay.

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.

119,359

3
O

DEPARTMENT OF DEFENSEMILITARY
Miscellaneous trust funds,

609 NOA
Exp.

o
5,745
5,439

6,098
6,150

6,082
6,189

-16
39

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.

20,148
24,474

20,209
28,000

27,085
27,000

6,876
-1,000

Advances and contributions from local interests are used in construction and maintenance work. Unused balances are
returned.

DEPARTMENT OF DEFENSE-CIVIL
Corps of Engineers advances and NOA
contributed funds
401 Exp.
A

Proposed for separate transmittal, other than pay increase supplemental.




00
Ox

CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

d

Increase or
decrease(—)

1967

1966

Explanation of NOA requests

TRUST FUNDS—Continued
DEPARTMENT OF DEFENSE—CIVIL—

d

Continued

o

U.S. Soldiers' Home:
Operation and maintenance.. _805 NOA

7,018

7,076
A
90
B
56

7,433

211

Exp.

6,859

7,128
Ai
87

7,435
A
3

223

805 NOA
Exp.

54

209

3,575
1,109

3,575
900

NOA
Exp.

1
1

1
1

1
1

Capital outlay
Permanent appropriation

U.S. Soldiers' Home, trust revolving Exp.
fund
805

-2

Total, Department of De- NOA
fense—Civil.

27,167

Exp.

31,386




Receipts includefines,forfeitures, and pay stoppages of Army and
Air Force enlisted personnel. Refunds are permanently authorized. The increase provides for an estimated rise from
1,895 to 1,950 domiciliary members and from 433 to 443
hospital patients. Estimate provides a new wing for 366
additional domiciliary beds.

(Fund finances certain supply inventories of the home.)
27,286
A
90
»56
35,284
A
87
B54

38,094

10,662

35,543
A
3

123

B2

CD

a

DEPARTMENT OF HEALTH,
EDUCATION, AND WELFARE
Federal old-age and survivors insur- NOA (16,443,527) (17,501,835) (21,112,849) (3,611,014) The old-age and survivors, and the disability insurance programs
provide insurance against income loss due to death, retirement,
ance trust fund
654
or disability. Increased tax receipts result from an increase
Receipts appropriated:
in the annual covered wage base from $4,800 to $6,600 effective
14,599,359
18,932,000 3,446,000
15,486,000
(Employment taxes)
Jan. 1, 1966, an increase in the combined employer-employee
1,511,000
138,000
1,257,853
1,378,000
(Deposits by States)
payroll tax from 6.75% to 7.0% on Jan. 1, 1966, and to 7.1%
589,916
33,734
583,125
556,182
(Interest on investments)
on Jan. 1, 1967, for the OASI portion and from 0.5% to 0.7%
1,865
3,112
3,581
(Interest payment by other
on Jan. 1, 1966, for the DI portion. Anticipated increases in
trust funds.)
average earnings will also add to tax receipts. Beginning in
-4
78
72
68
(Other)
1966, receipts of the old-age and survivors and disability insur78,000
(Receipts for military service
78,000
ance trust funds include reimbursements to the trust funds for
credits.)
increased expenses due to military service credits.
Expenditures:
Exp. (15,961,893) (18,847,629) (19,876,960) (1,029,331)
939,000 Increases in the OASI expenditures reflect the accretion of
15,225,894
18,125,000
19,064,000
(Benefit payments)
„_»
11,835
individuals to the beneficiary rolls and the increase in average
300,055
273,633
285,468
(Administrative expenses)
3,496
payments as the system continues to mature. Beginning in
305
3,996
7,492
(Other expenditures)
75,000
1966, both funds will also finance vocational rehabilitation
435,638
445,000
520,000
(Payment to Railroad Retireservices provided to disabled individuals who receive benefits
ment Board.)
under the program.
(577,837) The number of individuals receiving monthly benefits at the end
Disability insurance trust fund _ _ 654 NOA (1,240,508) (1,532,357) (2,110,194)
Receipts appropriated:
of each fiscal year are estimated as follows (in thousands):
1,082,023
1,345,000
641,000
(Employment taxes)
1,886,000
1965
1966
1967
93,221
114,000
37,000
(Deposits by States)
151,000
actual
estimate estimate
-164
65,247
57,337
57,173
(Interest on investments)
Retired individuals *
13,444
14,110
14,536
1
17
21
20
(Miscellaneous receipts)
Disabled dependents. „ . . . _
183
195
205
16,000
(Receipts for military service
16,000
2
Survivors
.
4,709
4,955
5,174
credit.)
Disabled workers and their
Expenditures
Exp. (1,497,796) (1,939,728) (1,941,544)
(1,826)
dependents
1,516
1,641
1,729
(Benefit payments)
1,392,190
67,000
1,715,000
1,782,000
1
Includes wives under retirement age who have chil78.223
-89,517
89,517
(Payment to Federal old-age
dren in their care.
and survivors insurance trust
2
Includes children of retired workers.
fund.)
103,832
3,768
116,916
13.084
(Administrative expenses)
6,379
15,628
9,249
(Other expenditures)
23~615
25,000
27,000
2,000
(Payment to Railroad Retirement Account.)
A
B

Proposed for separate transmittal, other than pay increase suppllemental.
Proposed for separate transmittal, civilian pay increase suppleme tal.




3
w

<

00

5

CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965
enacted

Account and functional code

1966
estimate
TRUST

1967
estimate

Increase or
decrease(—)

00

Explanation of NOA requests

FUNDS-Continued

DEPARTMENT OF HEALTH,
EDUCATION, AND WELFARE—Con.
Hospital insurance trust fund
651 NOA
Receipts appropriated:
(Taxes: Appropriated)
(Deposits by States)
(Federal payment for military
service and uninsured.)
(Receipts from Railroad Retirement account).
Interest on investments
Other
Expenditures
Exp.
(Benefit payments)
(Administrative expenses)
(Other)
Federal supplementary medical in- NOA
surance trust fund
651
Receipts appropriated:
(Premium contributions)
(Federal contributions)
(Interest on investments)
(Other)
Expenditures
(Benefit payments)
(Administrative expenses)
(Payment to OASI)
(Other)




Exp.

(856,404)
776,000
45,000
36,779

8,597
(53,221)
52,881
340

(2,730,981) (1,874,577) Federal health insurance for the aged consists of a hospital
insurance program and a supplementary medical insurance
program separately financed and funded. The hospital
2,210,000
1,434,000
insurance program is financed by a combined employer171,000
126,000
employee payroll tax of 0.7% of annual covered wages begin293,947
257,168
ning January 1, 1966, which will rise to 1.0% in January 1967.
Costs of benefits for those not insured under the OASDI or
16,000
16,000
Railroad Retirement program, though paid by the hospital
insurance trust fund, are financed by a general fund appropria40,026
31,429
ation. Benefits begin July 1, 1966.
8
(2,426,146) (2,372,825)
2,338,000
2,338,000
87,057
34,176
1,089
749
(1,104,009) (1,104,009) Receipts in the supplementary medical insurance program
(covering doctor bills) stem from $3 per month premium payments by enrollees and matching contributions from the
general fund. Premium payments, contributions, and benefits
begin on July 1, 1966.
550,000
550,000
550,000 The number of persons receiving benefits under these programs
550,000
during fiscal 1967 are estimated as follows (in thousands):
4,001
4,001
Hospital insurance program
4,375
8
8
(899,218)
Supplementary medical insurance program
4,150
(899,218)
765,000
765,000
85,942
85,942
47,082
47,082
1,194
1,194

d

o

CO
OS

651

NOA
Exp.

653

Miscellaneous trust funds

NOA
Exp.

278
302

269
271

1
1

1
1

-9
-31

Gifts and contributions are expended for specified purposes, or
are used to further the work of the Public Health Service.
Gifts received for refugee assistance are used for that purpose.

-1

659
Total, Department of Health,
Education, and Welfare.

336
564
1

NOA
Exp.

17,684,372
17,460,251

19,890,875 27,058,303
20,832,974 | 25,144,140
B
7,907

7,267,572
4,303,259

DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
Federal National Mortgage Association, secondary market operations, trust revolving fund (authorization to expend corporate
debt receipts)
551

NOA
Exp.

90,780
91,468

269,994
1,399,500

135,000
500,000

-134,994
-899,500

Mortgage purchases of $900 million will be less than the record
$1,800 million expected in 1966; receipts will include sales of
$25 million of mortgages. Government equity of $213 million
will exceed private equity of $156 million at year end primarily
because of Treasury purchase of preferred stock in 1966 and
1967.

ft!

o
o

DEPARTMENT OF THE INTERIOR
Indian tribal funds
B

.

409

NOA
Exp.

123,528
74,015

103,801
69.846

103,371
58,738

-430
-11,108

Certain funds of Indian tribes are maintained in trust and administered by the Secretary for their benefit.

W

Proposed for separate transmittal, civilian pay increase supplemental.




CO
Ox

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
00
1965

Account and functional code

1966

1967

Increase or
decrease (—)

Explanation of NOA requests

TRUST FUNDS—Continued
DEPARTMENT OF THE INTERIOR-

Continued
Miscellaneous trust funds

401 NOA
Exp.

2,652
2,003

2,341

1,111

3,095

2,200

-1,230
-895

Non-Federal advances are deposited for shared land management
activities and for construction of power and reclamation
facilities.
States, counties, municipalities, and private sources contribute
funds for minerals and mining research.

403 NOA
Exp.

1,176
1,299

1,600
1,520

1,600
1,580

60

404 NOA
Exp.

1,604

1,584

1,669
1,634

1,699
1,699

30
65

405 NOA

2,051
1,314

15,791
7,377

15,791
16,727

9,350

5,386
5.049

5,100
5,350

5,100
5,400

50

Certain revenues from Indian reservations, agencies, and schools
are used for support of schools and agency functions.

Total, Department of the NOA
Interior.
Exp.

136,397
85,266

130,302
88.822

128,672
86,344

-2,478

Alien property fund, trust revolving Exp.
funds
151

-168,758

155,365

62,757

-92,608

(Seized property of enemy nations of World War II or their nationals is being liquidated and used for payment of claims and
settlements. This program will be terminated in 1966.)

Federal prisons system trust revolv- Exp.
ing fund
908

27

-18

18

(Profits from sales of sundries in prison commissaries are used
for the benefit of prison inmates.)

-168,731

155,347

o
o

Donations are mainly used for specified purposes of the National
Park Service.

Exp.

w

d

Exp.

409 NOA

Contributions and receipts are used for fishery products inspection, sea lamprey control, and other work of the Fish and Wildlife Service.

-1,630
CO
OS

DEPARTMENT OF JUSTICE

Total, Department of Justice. Exp.




62,757

-92,590

DEPARTMENT OF LABOR
Unemployment trust fund
654 NOA (4,131,763)
Receipts appropriated:
3,051,539
(Deposits by States)
654
(Federal unemployment taxes):
502,064
652
654
340
142,781
(Railroad unemployment insurance taxes)
654
67,750
(Railroad unemployment insurance other)
654
(Advance for employment services):
652
(Existing legislation)
(Proposed)
(Interest on investments) ___654
255,265
(Advances for temporary unem112,025
ployment compensation) _654
Expenditures:
Exp. (3,129,985)
(Withdrawals by States).__654
2,389,612
(Railroad unemployment bene115,243
fits)
.
654
412,767
(Administrative expenses) __ 652
14,006
654
(Temporary extended unemployment compensation benefits)
654

(Repayment of advances for
temporary extended benefits)
654
652
(Other)
654




(3,909,611)

(3,923,376)

2,900,000

2,900,000

519,896
225
144,800

536,250
231
144,910

59,200

59,090

268,000
21,282

23,000
-23,000
280,000
2,895

(2,890,403)
2,182,139
102,000
473,004
14,828

(2,947,279)
2,202,505
102,000
527,064
15,687

(13,765) 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 upon the funds to pay weekly benefits to
18,250
unemployed eligibles, in addition to sickness benefits paid by
6
the Railroad Retirement Board through this fund. Receipts
include repayments of advances to States for temporary programs which extend the duration of unemployment benefits.
-110
The amounts shown for these repayments include estimated
and actual repayments through the trust fund and exclude
direct payments by States to the U.S. Treasury. The increase
in Federal tax collections and interest on investments is par23,000
tially offset by decline in scheduled repayments of advances for
-23,000
temporary extended unemployment compensation.
12,000
-18,387

no

(56,876) (The number of benefit payments made during 1965 (in thous20,366
ands) was 61,123; the estimate for 1966 and 1967 is 56,130.)
54,060
859

105,859

21,282

2,473

2,550
94,600

3,750
93,800

1,200
-800

a
w
>
w
S3

3
3

-18,809

2,398
90,102

Increase in administrative cost reflects an increase of $300 in the
average wage payments to State personnel, improvement and
expansion of the Federal-State Employment service, an increase of $20.7 million tofinancethe full year cost of specialized
youth services, and an increase in unemployment insurance
administrative costs of $3.9 million reflecting growth in covered
employment and changes in State laws. These increases are
partially offset by $13.6 million savings resulting from management improvements and increased productivity.

O

00

00

to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
uclioual

1965

1966

Increase or
decrease ( - )

1967

Explanation of NOA requests

TRUST FUNDS—Continued
DEPARTMENT OF LABOR—Continued
Bureau of Employees' Compensa- NOA
tion trust funds
906 Exp.

Miscellaneous trust funds

97
127

36
51

-61

4,131,894

3,909,737

13,705

3,130,219

2,890,464
B
182

3,946,442
A-23,000
2.947,421
B10

Exp.
NOA
Exp.

Receipts are from employers for the deaths of employees without
eligible survivors, and from fines and penalties. Payments
include certain permanent disability cases and rehabilitation
maintenance benefit.

30
101

652 NOA

Total, Department of Labor.

29
116

43
136

-76

Funds are advanced from sources outside the Federal Government to finance special statistical studies.

56,785

DEPARTMENT OF STATE
Foreign Service retirement and dis- NOA
ability fund___
654
Receipts appropriated:
(Employees' contribution)
(Employer's contribution)
(Interest on investment)
Expenditures




Exp.

(9,937)

(10,111)

(10,394)

4,673
3,687

4,633
3,833
M5
1,600
9,240
A45

4,772
3,972

1,577
8,307

1,650
10,415

(283) 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
6V2% of basic salaries. Approximately 1,545 annuitants will
139
be receiving benefits at the end of 1967. Fund balances are
94
invested in interest-bearing U.S. securities. Additional 1966
payment from the general fund is to finance changes in annuities
50
pursuant to recent legislation without increasing the unfunded
1,130
liability of the fund for the first fiscal year.

151 NOA
Exp.

894
910

152 NOA

Miscellaneous trust funds

325
309

11
34
225
241

10
10
225
240

153 NOA
Exp.

39
25

30
30

30
30

Total. Department of State....NOA

11,196

-1
-24

Exp.

9.550

10,332 1
A
45
9,545 |

-1

Large unconditional gifts were received and expended in 1965.
Other governments' funds are used for training of foreign nationals
or requested services.
These funds, from gifts, are for educational exchange.

10,659

282

10,695

1,105

2,755 NOA and expenditures for 1967 are principally for the Polish and
Rumanian claims fund.
800

A45

TREASURY DEPARTMENT
NOA
Exp.

151
151

151 NOA
Exp.

2,000
1,846

2,000
5,000

4,755
5,800

Coast Guard general gift fund_._502 NOA
Exp.

28
5

42
42

10
25

-32
-17

Decrease results from nonrecurring sale in 1966 of invested
assets to purchase boats for training at the Coast Guard
Academy.

904 NOA
Exp.

21,855
20,957

22,380
22,616

23,026
23,027

646
411

Increase is principally estimated work volume and increased
salary costs for Customs activities in Puerto Rico and Virgin
Islands.

Total, Treasury Department- NOA
Exp,

24,034
22,959

24,421
27,658

27,791
28.851

3,370
1,193

1,230
942

1,325
1,752

276
276

-1,049
-1,476

National defense conditional
fund
Foreign claims fund

Miscellaneous trust fund

s

ATOMIC ENERGY COMMISSION
Advances for non-Federal projects NOA
058 Exp.

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




Advances from the Washington Public Power Supply System
are for work related to construction of electric facilities at
Richland, Wash.
CO
GO

00

o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966
estimate

Increase or
decrease ( —)

1967

Explanation of NOA requests

w
d
o

TRUST FUNDS—Continued
GENERAL SERVICES ADMINISTRATION
Advances for construction services Exp.
(receipts to liquidate contract
authorization)
905
National Archives gift fund

Final settlement of the contract for the construction of a building
for the FDIC in Washington was made in 1965.

(41)

905 NOA
Exp.

2,203
147

193
350

Advances and reimbursements. .905 Exp.

26

26

National Archives (trust revolving Exp.
fund)
905

-4

-91

Total, General Services Ad- NOA
ministration.
Exp.

2,203
211

541
50

189
400

-4
50

Grants from foundations are made for historical research.

-26

(Expenditures incident to construction of Potomac Interceptor
Sewer.)

-95

-4

(Microfilm and reproduction service and admission fees to
Presidential libraries are used for operations.)

193
285

189
305

-4
20

21
495

21
141

-354

NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
Miscellaneous trust funds




251 NOA
Exp.

Advances from foreign governments and gifts and donations are
used for purchase of materials and services.

4
SO

VETERANS ADMINISTRATION
Life insurance funds
.
805 NOA
Receipts appropriated:
(Premiums and other operating
receipts.)
(Payments from general and
special funds.)
(Interest on investments)
Expenditures
Exp.

(1,496) The National Service (World War II) and U.S. Government
(World War I) life insurance funds will cover 5 million policies,
80
$31 billion of insurance in force at end of 1967. Premium
receipts and interest earned thereon are available for the
-740
payment of liabilities. There is an increase in expenditures
largely because some dividends scheduled for payment in
2,157
1966 were paid in 1965 and because there will be an unusually
large number of endowments coming into maturity. Fund
129,057
balances are in U.S. securities; assets exceeded actuarial
liabilities by $96.3 million on June 30, 1965.

(710,532)

(721,214)

(722,710)

487,717

490,253

490,333

6,910

6,768

6,028

215,907
615,524

224,192
542,534

226,349
671,591

805 NOA
Exp.

1,811
1,514

1,750
4,276

1,750
1,630

-2,646

Total, Veterans Administra- NOA
tion.
Exp.

712,343
617,038

722,964
546,810

724,460
673,221

1,496
126,411

4
4

16
16

4
4

-12
-\2

Miscellaneous trust funds.

NOA is mainly receipts of the general post trust fund, used for
the welfare of veterans at homes and hospitals. Decrease in
expenditures is due to payment of the balance of the adjusted
service certificate fund to the appropriation, compensation
and pensions in 1966.

w

i
w
o
o

OTHER INDEPENDENT AGENCIES
American Battle Monuments Com- NOA
mission contributed fund
805 Exp.
Civil Service Commission:
Civil service retirement and disa- NOA
bilityfund____.
654
Receipts appropriated:
(Employing agency contributions) .
(Deductions from salaries). _
(Voluntary contributions,
etc.).
(Interest on investments)
Expenditures
Exp.




( ,664,373)
2

( ,769,764)
2

( ,850,927)
2

1,050,356

1,073,500

1,081,300

1,050,416

1,073,500

1,081,300

81,430
482,171
,438,147
1

83,403
539,361
,614,906
1

89,403
598,924
1
,791,332

Contributions for flowers and for repair of non-Federal war
memorials are used as intended.

(81,163) Most civilian workers are covered by this fund. Under existing
legislation, employees and employing agencies each pay 6^/2%
of basic salaries. About 814,000 persons are expected to be on
7,800
annuity rolls by June 1967. Fund balances are invested in U.S.
securities. Receipts include $65 million in 1965, $67 million in
7,800
1966, and $73 million in 1967 from general funds under Public
Law 87-793.
6,000
59,563
176,426

i

CO

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1966

Increase or
decrease ( - )

1967

Explanation of NOA requests

TRUST FUNDS—Continued
OTHER INDEPENDENT AGENCIES—
Continued
Civil Service Commission—Continued

Employees health benefits fund Exp.
(trust revolving fund)
654
Employees life insurance fund Exp.
(trust revolving fund)
654
Retired employees health benefits Exp.
fund (trust revolving fund) __654

-9,278

8,525

-8,480

-17,005

-26,361

-15,483

-49,895

-34,412

-782

76

536

460

Federal Communications Commis- Exp.
sion trust revolving fund
508

-116

Foreign Claims Settlement Commis- NOA
sion, war claims fund
151 Exp.

9,500

General Accounting Office
fund

trust NOA
904 Exp.

(Fund is used as clearinghouse for settlements with foreign governments on radiotelephone and radiotelegraph messages.)

102

142,500
19,000

23,750
47,400

6
1

5
5

5
5

Historical and Memorial Commis- Exp.
sions: Civil War Centennial Commission, donations
910

Commission on the Status of NOA
Puerto Rico
910 Exp.




-118,750
28,400

72
72

245
113

200
288

80

49

Alien property fund receipts are appropriated for claims under the
General War Claims Act.
Estates are held in trust for legal claimants.

-1

Intergovernmental Commissions:
Appalachian Regional Commis- NOA
sion
507 Exp.

(Employees health benefits fund will have 2,332,000 participants
by June 1967; employees life insurance fund, 2,660,000; and
retired employees health benefits fund, 214,000.)

8
8
-200
-239

(Donations were used under the terms received.)

Donations are used under the terms received.

o

2

i

52

1,450

1,398

(Activity of $28.0 million involves 10,900 housing units.)

National Capital Planning Comrnis- NOA
sion contributed fund
555 Exp.

102
657

6,100
3,000

5,998
2,343

Maryland will contribute $2.9 million and Virginia $3.2 million
as their matching shares of like amounts requested to be
appropriated for completion of the George Washington Memorial Parkway.

National Foundation on the Arts and NOA
Humanities
704 Exp.

1,000
1,000

2,000
2,000

1,000

Donations are accepted to support the purposes of the
foundation.

National Capital Housing Authority Exp.
trust revolving fund
555

588

Railroad Retirement Board: Rail- NOA (1,336,761)
road retirement account
654
Receipts appropriated:
(Employment taxes)
630,429
(Interest on investments)
143,134
(Payment from OASI trust
435,638
fund.)
(Payment from Federal dis23,615
ability insurance trust fund,)
(Payment for military service
13,834
credits.)
77,935
(Repayment of advances to
Railroad Unemployment insurance account.)
(Interest on refunds)
9
_ (Other)
12,167
Expenditures:
Exp. (1,184,951)
(Benefit payments)
1.116,370
(Administrative expenses)
(Proposed payment to hospital
insurance trust fund.)
(Advances for unemployment
insurance.)
(Interest and refunds)
A

10,342

(1,418,558)

(1,584,201)

689,000
148,400
445,000

772,000
154,200
520,000

25,000

27,000

16,558

17,201

83,000

83,000

11,600
(1,239,725)
1,176,000
10,875
A
850

10,800
(1,274,175)
1,195,000
11,175
16,000

58,230

52,000

(165,643) 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 changes
in the annual covered wage base and tax rates scheduled under
83,000
the 1965 amendments to the Railroad Retirement Act, as well
5,800
as the additional taxes to cover hospital insurance. Increased
75,000
income comes also from the financial interchange with the
Social Security program. Expenditures increase primarily
2,000
because of the increase in the number of beneficiaries, and the
first payment to the Federal Hospital Insurance Trust
643
Fund. The sharper rise in 1966 reflects the elimination
of restrictions on the concurrent receipt of spouse's benefits
under the Railroad Retirement and Social Security systems.
The number receiving monthly benefits at the end of each
year is as follows (in thousands).
-800
1965
1966
1967
actual
estimate estimate
(35,300)
19,000
Retired individuals
495
516
519
Disabled and their depend-550
ents
_
102
102
103
Survivors
_..
292
284
299

•-3

w

16,000

52,000

9

Proposed for separate transmittal, othei than pay increase supplemental.




1,000

00

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1966

Increase or
decrease ( - )

1967

Explanation of NOA requests

TRUST FUNDS—Continued
OTHER INDEPENDENT AGENCIES—
Continued
Smithsonian Institution trust fund NOA
704 Exp.

15
19

15
15

15
15

Donations, subscriptions, and fees are used for part of cost of the
Canal Zone Biological Area.

Tax Court of the United States trust NOA
fund
904 Exp.

27
11

27
20

27
20

Judges pay 3 % (currently $7 thousand) and the Government
pays the remainder ($20 thousand) to finance survivors
annuity system.

United States Information Agency NOA
trust funds
_
153 Exp.

27
50

4
7

5
6

1
-1

4,010,958
2,587,525

4,332,263
2,868,882

4,467,114
3,061,693

134,851
192,811

Total, other
agencies.

independent NOA
Exp.

Increase due to higher contributions by business concerns for
international exhibits.

DISTRICT OF COLUMBIA
District of Columbia receipts appropriated:
Current appropriations. _
_555 NOA
Permanent appropriations




555 NOA
Exp.

420,951
1,626
384,521

395,257 ]
A
4,488 \
B2,145
1,593
439,100
M.448
B2,025

487,384
M,510

J

1,637
484,562 1
M.510
B120

9,004

Funds of the municipal government are accounted for through
the U.S. Treasury as trust funds. Congressional appropriations of municipal funds are required currently for most
municipal activities. Supplementals in 1966 and 1967 provide
44
for pay raises (under proposed legislation) for teachers, police43,579
men, and firemen. Supplemental for 1966 is also for payment
of overtime to policemen, firemen, and for wage board pay
increases.

i

DEPOSIT FUNDS
Legislative Branch
The Judiciary
Executive Office of the President. __
Funds appropriated to the PresidentDepartment of Agriculture
Department of Commerce
Department of Defense1—Military.
Department of Defense—Civil
Department of Health, Education.
h
and Welfare.
** Department of Housing and Urban
*"
Development.
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
National Aeronautics and Space
Administration.
Veterans Administration
Independent Offices:
Farm Credit Administration
Federal Deposit Insurance Corporation.
Federal Home Loan Bank Board.
Smithsonian Institution
Other
District of Columbia

Exp.
Exp.
Exp.
Exp.
Exp.
Exp.
Exp.
Exp.
Exp.

-237
-50
-200
-11.067
-6.373
184
29,953
-6.682
-1.313

15
8

1

-184

24
-1,576
-6,913
-95
21.005
-6,950
-263

25
-7.963
-7.360
-109
13.408
-7.950
-166

1
-6.387
-447
-14
-7.597
-1,000
97

Exp.

-10.569

10,460

Exp.
Exp.
Exp.
Exp.
Exp.
Exp.
Exp.
Exp.
Exp.
Exp

-84.464
-459
-63
980
-1,148
-136,098
-545
-826
-1,513
1,381

-86.700
-100
-65
1.000

63.300
150
-65
1,000

-100,000

-100,000

-130
120
3,400

-6,130
-25

Exp.

1,413

1,413

1,413

Exp.
Exp.

1,413
-1,149

1,400
1,986

1,400
-1.191

Exp.
Exp.
Exp.
Exp

17,898
-548
937
-461

-5.000
329
187
-160

2.000
-225

7,000
-329
-412
160

Total, deposit funds

Exp.

-209,606

-166.443

-48.487

-117,956

g
f
§
°
9
4
9

A
B

-10,460

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




(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.)

150,000
250

-6,000
-145
-3,400

o
o

-3,177

00

CO
O

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965
enacted

1966

1967

Increase or
decrease(—)

Explanation of NOA requests

Hi

w

TRUST FUNDS—Continued
GOVERNMENT-SPONSORED
ENTERPRISES
Farm Credit Administration:
Banks for Cooperatives

_352 Exp.

189,231

69.360

80,000

10,640

(Bank operations are financed by $52.0 million of Government
capital and $105.0 million of private capital as of June 1965.)

Federal Intermediate Credit Banks Exp.
352

149,032

201,077

212,205

11,128

(Bank operations are financed by $123.4 million of Government
capital and $69.3 million of private capital as of June 1965.)

Federal Land Banks

352 Exp.

561,021

300,000

300,000

Federal Home Loan Bank Board: Exp.
Home loan banks. _ .
551

659,661

142,410

200,000

57,590

Federal Deposit Insurance Corpo- Exp.
ration
506

-179,957

-220,133

-223,003

- 2 ,870

Total, Government-sponsored Exp.
enterprises.

1,378,989

492,714

569,202

76,488




(Banks are wholly privately owned enterprise.)
(Banks are wholly privately owned enterprise.)
(Premium receipts and interest on investments in U.S. securities
exceed current claims and expenses; corporation has no capital
stock.)

CD
O
>

GRAND TOTALS—TRUST FUNDS
Total new obligational authority

32,001,510

35,040,797
A
4,623
B
2,201

42,319,639
A
264,760

7,536,778

Expenditures:
Subtotal
Interfund transactions

30,275,831
-638,438

34,565,158
-794,963

38,648,836
-766,817

4,083,678

29,637,393

33,770,195

37,767,374
A
114,513
B
132

4,096,186

Total expenditures

A 5,470
10,168

B

A
B

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




S

00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965

Account atid fu

Increase or
decrease ( - )

1967

1966

Explanation of NOA requests

CO

to

MEMORANDUM—ANNEXED BUDGETS
Department of Agriculture:
Milk Marketing Administration:
Not included above.
Treasury Department:
Comptroller of the Currency:
Included under "Deposit funds"
above.*

Exp.

-15

Exp.

-1.819

Exchange Stabilization Fund:
Included under "Deposit funds" Exp.
above.
Operating expenditures
_ _ Exp.
Other Independent Agencies:
Board of Governors of Federal Reserve System:
Not included above *
_ _ 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.

(Operations are financed by assessments on regulated milk
handlers.)
-1.143

-1.459

-316

(The fund is financed by $200 million of Government capital and
by earnings.)

59.499
(4.072)

(Operations are financed primarily by assessments from national
banks.)

(4.322)

(4,315)

(-7)

o
3

3
GO

85

303

-122

-425

(Operations are financed by levies upon the Federal Reserve
Banks, in proportion to their capital and surplus.)

189,231

69.360

80,000

10,640

-1.004

1,430

550

-880

-5,005

2,680

5.000

2,320

(Loan program is estimated at $1.6 billion in 1967, slightly higher
than 1966. Repayments of loans and other income will be
supplemented by borrowing from the public of $73 million in
1966 and $85 million in 1967. Government capital is being
retired by $13.5 million in 1966 and $7.6 million in 1967. See
further explanation under Government-sponsored enterprises,
above.)

183.222

73.470

85.550

12,080

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.

Total.

212,205

11,128

1,697

-1,455

285

1,740

11,959

-130

-655

-525

199,492

211,835

12,343

-179,957

-220,133

-223,003

-2,870

-1,150

1,986

-1,191

-3,177

-181,107

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

201,077

162,688

Total

149,032

Exp.

-218,147

-224,194

50,304

69,202

m

-1,815

2,853

4,223

222,553

53,975

O
O

-2,633

7,024

3

18,898

57,223

(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
$3.1 billion by June 1966 and $3.3 billion by June 1967. The
principal revenues are from insurance assessments (approximately $106 million for 1966 and $112 million for 1967) and
interest on investments ($112 million and $115 million for the
same 2 years). See further explanation under Governmentsponsored enterprises, above.)

-6,047

158,306

(Loan program is estimated at $5.8 billion for 1967, which is
$426 million more than the estimated loans for 1966. Repayments of loans and other income will be supplemented by
borrowing from the public of $201 million in 1966 and $212
million in 1967. Government ownership of capital stock is
being increased by $2.3 million in 1966. See further explanation under Government-sponsored enterprises, above.)

71,610

1.370
17,635

* A mounts reported are on a calendar year basis.




00




PART 6

SPECIAL ANALYSES

375

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 and product accounts. A
reconciliation of these three measures is presented in table A-l.
For many years, the administrative budget served as the principal
financial plan for conducting the affairs of Government. It represents a focal point for management and decisionmaking with respect
to Government activities which are financed by the Government's
own funds. 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 which are not
included in administrative budget totals have grown rapidly. As a
result, the flow of financial transactions between the Federal Government and the public is considerably larger than is shown by the
administrative budget. For this reason, the consolidated cash statement of Federal receipts from and payments to the public is designed
to present more fully the flow of total cash transactions (excluding
borrowing) between the Federal Government and the public. Thus,
the consolidated cash statement is useful for determining Government
financing and net borrowing requirements and for analyzing the
Federal impact on money and credit.
Federal receipts and expenditures in the national income and product accounts provide a measure of the direct impact of Federal fiscal
activity on the Nation's current flow of income and output. This
measure was specifically designed to complement the data on private
expenditures and incomes contained in the Department of Commerce
national income accounts. The Federal sector account is especially
suited for an analysis of fiscal and economic policy.
For certain types of problems, none of these measures of receipts
and expenditures will serve adequately. Economic activity may be
affected by Government transactions which are not reflected immediately or fully in receipts and expenditures. 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, loan guarantees, and loan
insurance programs have a significant impact in the money and credit
markets of the economy not fully reflected by the level of budget
expenditures. 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.
376




377

SPECIAL ANALYSES

Table A-1. RELATION OF THREE MEASURES OF FEDERAL RECEIPTS
AND EXPENDITURES, 1965-67
[In billions of dollars]
1965

1967
stimate

1966

RECEIPTS
Administrative budget receipts
Plus: Trust fund receipts
Less: Intragovernmental transactions
Receipts from exercise of monetary authority
Equals: Federal receipts from the public
Less: Cash transactions excluded from Federal receipts
account: ^
Coverage differences:
District of Columbia
Other
Financial transactions: Receipts from loan repayments
Miscellaneous: Sale of land, etc
Plus: Items added to Federal sector account but not in cash
receipts:
Netting differences
Contributions to Government employee retirement
funds
*
Receipts netted against expenditures, etc
Timing differences: Excess of tax accruals ( + ) or
collections (—) (corporate, personal, social insurance contributions, etc.)
Miscellaneous
Equals: Federal receipts, national income and product accounts

93.1
31.0
4.3
.1
119.7

100.0
33.5
4.5
.9
128.2

1.6
145.5

.3
.1

.3
.1

.3
.1

.4
.2

.1
.1

.2
.1

.
7

.
1

-.1

(2.2)
(-1.5)

111.0
41.6

5.5

(2.2)
(2.2)
(-2.1) (-2.3)

.2
*
119.6

1.0
.1

-2.6
.1

128.8

142.2

96.5

106.4

112.8

29.6
4.3
-.6
122.4

33.8
4.5
.7
135.0

37.9
5.5
.2
145.0

1.6
.2

.8
.3

1.0
.3

2.4
.9
.7

1.5
1.0
.4

-1.4
1.0
.7

.
7

.
1

EXPENDITURES
Administrative budget expenditures
Plus: Trust fund expenditures (including Governmentsponsored enterprises net)
Less: Intragovernmental transactions
Debt issuance in lieu of checks and other adjustments_,
Equals: Federal payments to the public
Less: Cash transactions excluded from Federal sector expenditures account:
Coverage differences:
District of Columbia, Federal home loan banks, and
Federal land banks
Other
Financial transactions:
Net lending in cash expenditures
Net foreign currency purchases.__.
Miscellaneous: Acquisition of land, etc
Plus: Items added to Federal sector account but not in cash
payments:
Netting differences
Contributions to Government employee retirement
funds
Receipts netted against expenditures, etc
Timing differences:
Excess of deliveries and accruals ( + ) or payments (—)
Checks outstanding and certain other accounts
Miscellaneous: Net expenditure of foreign currency
and other
Equals: Federal expenditures, national income and product
accounts
*Less than $50 million.




(2.2)
(-1.5)

(2.2)
(-2.1)

1.5
—9

-.6
.1

.
4

.
4

.3

118.3

131.0

142.7

(2.2)

(-2.3)

378

THE BUDGET FOR FISCAL YEAR 1967
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.
CONSOLIDATED CASH STATEMENT

The consolidated cash statement of Federal receipts and payments
is more comprehensive 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. Government payments are recorded when checks are cashed while administrative
budget outlays are recorded when checks are issued.
FEDERAL SECTOR OF THE NATIONAL INCOME ACCOUNTS

The Federal sector of the national income and product accounts—
like the consolidated cash statement—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. The national income accounts
exclude all borrowing and lending transactions. The Federal sector
account, therefore, excludes transactions involving purely financial
claims such as loans and purchases or sales of land. Such transactions
represent neither the production of current output nor incomes, even
though they may 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).




379

SPECIAL ANALYSES

Table A-2. FEDERAL RECEIPTS AND EXPENDITURES IN THE NATIONAL
INCOME ACCOUNTS (in billions of dollars)
Description

1965
actual

1966
estimate

1967
estimate

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

51.2
27.0
16.8
24.6

54.8
29.3
15.9
28.8

60.5
31.1
16.5
34.1

119.6

128.8

142.2

64.5
30.3
10.9
8.6
4.1

70.7
34.2
12.8
9.0
4.3

74.4
39.2
14.7
9.7
4.7

118.3

131.0

142.7

+1.2

-2.2

-.5

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

Federal sector receipts.—Federal receipts on a national income
basis largely reflect the tax payments or liabilities of individu Js,
corporations and other businesses arising out of incomes earned as
well as other tax and nontax receipts. These receipts are classified
into the following four categories: (1) personal tax and nontax
receipts, (2) corporate profits tax accruals, (3) indirect business tax
and nontax accruals, and (4) receipts from contributions for social
insurance.
Personal tax and nontax receipts consist mostly of individual
income taxes, estate and gift taxes, fines, fees, and rental receipts.
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. Collections of Federal
corporate income taxes usually lag the accruals. Indirect business tax
and nontax accruals consist primarily of excise taxes, customs duties,
and Federal receipts from rent and royalties. 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 sector expenditures.—Federal expenditures on a national
income basis represent either purchases of currently produced goods
and services or outlays which directly affect current levels of income.
These expenditures are classified in the following five categories:
(1) purchases of goods and services, (2) transfer payments, (3) grantsin-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.




380

THE BUDGET FOR FISCAL YEAR 1967

1. Purchases of goods and services.—These purchases represent the
value of the Nation's currently produced output bought directly by
the Federal Government. Expenditures for goods and services
represent the production and use of resources and constitute a part
of the gross national product. They are reported in the national
income accounts net of Government sales of goods and services.
Purchases include the pay of active military and civilian employees
of the Federal Government, employer contributions for retirement,
insurance, and other benefits for Federal employees, deliveries of
equipment and supplies for defense and other programs, new construction and purchase of existing structures, payments on research
and development contracts with corporations and on similar grants
to private nonprofit institutions, expenditures for the purchase of
commodities to be donated to schools or similar institutions, and
generally, the administrative expenses of Government programs.
Net interest paid to (or received from) foreigners is included in (or
deducted from) pui chases of goods and services.
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. Transfer payments are
classified into two categories—domestic and foreign.
Domestic transfer payments consist of monetary transfers to persons
or nonprofit institutions in the United States (excluding territories and
possessions). Examples of domestic transfer payments are: Veterans
compensation, pensions, and benefits; retired pay to Federal civilian or
military personnel; unemployment benefits; old-age, survivors, and
disability insurance; nonrepayable outlays for scholarships and fellowships; and payments for construction of private nonprofit hospitals.
Although transfer payments do not directly enter GNP calculations
as a Federal Government component, they do enter into the income
stream and have an impact on national output when respent by
the recipients.
Foreign transfer payments consist of Federal nonmilitary transfers of
money, commodities, or services for which no dollar reimbursement is
r eceived.
3. Grants-in-aid to State and local governments.—Grants, for purposes of the national income accounts, are Federal payments (other
than for interest on the public debt) to State and local governments,
including State and local educational institutions. Most of the
grants-in-aid and the shared revenues in Special Analysis J of the
budget are included in grants. Excluded, however, are items such
as (a) construction outlays for private nonprofit hospitals, (b) grantsin-kind such as farm commodities distributed to State and 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 or as consumption expenditures of individuals receiving State or local transfer payments.




SPECIAL ANALYSES

381

4. Net interest paid.—Net interest paid consists of the interest outlays to residents (including State and local governments) minus the
interest received from them.
5. Subsidies less current surplus of Government enterprises.—This
category consists of two elements which are consolidated for analytical
and statistical reasons: (a) subsidy payments to resident businesses,
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 costprice 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. The
difference between their sales and operating expenses constitutes the
surplus or deficit of government enterprises.
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.




382

THE BUDGET FOR FISCAL YEAR 1967

Table A-3. INTRAGOVERNMENTAL TRANSACTIONS EXCLUDED FROM
THE CONSOLIDATED CASH STATEMENT
[In millions of dollars]
Description

1966
estimate

1965
actual

1967
estimate

Administrative budget receipts which are trust fund expenditures:

Franchise taxes from Government-sponsored enterprises
Dividends, interest, etc., from Federal National Mortgage
Association
Reimbursements for expenses and services
Repayment of advances from unemployment trust fund and
other

5

5

5

17
66

16
11

22
76

106

21

2

194

114

105

Interest on trust funds
Contributions for military service credits
_
Federal supplementary medical insurance
Transitional coverage for hospital insurance.
__ _
Payments to District of Columbia (including Federal grantsin-aid)
Employing agencies' payments to employees' retirement funds. _
Awards to Indian tribal funds
Contributions to veterans life insurance funds
__
Other _

1.770
14

1.822
122
26

1.970
122
550
283

102
1.111
58
7
1

101
1.136
86
7
1

152
1.150
85
6
1

Total, trust fund receipt items. __
_ _ _ _ ._
Deductions from employees' salaries for retirement
_ __

3.063
1,046

3.301
1,069

4,318
1,077

4.303

4,484

5,500

Total, administrative budget receipt items
Trust fund receipts which are administrative budget expenditures:

Total, intragovernmental transactions

_

3. Exercise of monetary authority.—These receipts now come mostly
from seigniorage; that is, they represent the difference between the
cost of the metal in coins and the face value of the coins as money.
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.
A second example involves transactions in special notes used to pay
certain U.S. Government obligations. The Government has paid a




SPECIAL

383

ANALYSES

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.
Table A-4. DEBT ISSUANCE IN LIEU OF CHECKS, NET (in millions of dollars)
Description

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 *
Adjusted-service bonds issued
Excess profits tax refund bonds issued 2
Total, debt issuance in lieu of checks, net_

1965
actual

End 1967
outstanding

1966
estimate

1967
estimate

715

711

448

-472
-4

-95

11
-1
*
*

-41
-1
*
*

-43
-75
-40
-1
*

75
3
5
1

250

574

289

16,521

13,269
3,167

*Less than one-half million.
Negative figures represent net redemption.
Reported as refunds of receipts.

1
2

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.
RELATIONSHIP OF FEDERAL SECTOR ACCOUNT 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.
Exclusions from the cash budget: Certain transactions reported
as receipts or expenditures in the consolidated cash statement are
excluded or treated differently in the Federal sector accounts:
1. Coverage differences.—Cash receipts and expenditures of the
District of Columbia are excluded from the Federal sector and included
in the State and local government sector of the national income
accounts. Likewise, the net expenditures of the Federal Home Loan
Banks and the Federal Land Banks are classified elsewhere and excluded from the Federal sector accounts. Geographical exclusions
relate to Federal transactions with Puerto Rico, the Virgin Islands,
and other possessions.




384

THE BUDGET FOR FISCAL YEAR 1 9 6 7

2. Financial transactions.—The Federal sector account excludes
financial transactions (cash loan repayments and disbursements)
since these reflect the exchange of one kind of financial instrument for
another. Also excluded are dollar cash outlays for the acquisition of
foreign currency—such as Commodity Credit Corporation payments
to exporters in exchange for foreign currencies received for the export.
3. Miscellaneous adjustments.—These include primarily transactions
involving the sale or purchase of land—items which are included in
the cash budget but not in the Federal sector account.
Additions to the cash budget: The Federal sector accounts include some transactions which are not reflected in cash receipts or
expenditures:
4. Netting differences.—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 and
part of contributions for social insurance. The deficit or surplus is
unaffected by the adjustment since total receipts and expenditures
are both increased by the same amount.
Expenditures in the Federal sector account for purchases, interest,
and the current surplus or deficit of Government enterprises are
recorded net of receipts derived from products or services sold, interest
received, and enterprise sales. Where these receipts are included in
cash receipts, they are netted against expenditures in the Federal
sector account. Again this adjustment does not influence the surplus
or deficit, for in effect both receipts and expenditures are decreased
by the same amount.
5. Timing differences.—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) Federal purchases are measured,
insofar as is possible, in terms of the delivery of goods and services
to the Government, whereas cash payments for these deliveries may
precede or follow; and (b) 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.
6. Miscellaneous adjustments.—This category consists primarily of
the net expenditures of foreign currency. Cash budget transactions
involve only dollar outlays; in the Federal sector account net foreign
currency spending is treated as if it were a cash outlay. Other
adjustments involve a few minor exclusions and imputations to cash
receipts and expenditures.




SPECIAL A N A L Y S I S

B

PUBLIC ENTERPRISES, TRUST FUNDS, AND GROSS EXPENDITURES
OF THE GOVERNMENT

This analysis presents selected information on the financing of public
enterprise funds and the trust funds. 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 gross of such netting. 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 $22.9 billion in 1967, and their receipts will
be $21.5 billion (table B-l), resulting in net expenditures of $1.4
billion which are included in the administrative budget totals. The
Commodity Credit Corporation and the postal fund together account
for slightly more than half of the expenditures. The figures for both
1966 and 1967 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
$1.8 billion of the Commodity Credit Corporation receipts shown for
1967. The sales of Tennessee Y&lley 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 .
385

200-000 O—66




25

386

THE BUDGET FOR FISCAL YEAR 1967

Table B-1. GROSS EXPENDITURES AND APPLICABLE RECEIPTS OF
PUBLIC ENTERPRISE FUNDS (in millions of dollars)
Gross expenditures
Description

Funds appropriated to the President:
Economic assistance
Other
Department of Agriculture:
Commodity Credit Corporation
Farmers Home Administration
Rural Electrification Administration
(proposed legislation)
Other
Department of Commerce
Department of Defense:
Military
Civil (Panama Canal Company)
Depaicment of Health, Education, and
Welfare
.
Department of Housing and Urban Development:
College housing loan fund
Urban renewal fund
Federal National Mortgage Association. _
Federal Housing Administration
Public Housing Administration
Other
Department of the Interior:
Existing legislation
Proposed legislation
Department of Labor
Post Office Department
Treasury Department
General Services Administration
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 _

1965
actual

1966

Applicable receipts

1967
estimate

1965

1966

1967

1,000
145

1,011
105

1,016
121

51
68

7,084
870

6,716
967

5,954
1,073

5,179
630

26
68

189
40
164

196
M15
161

25
15

189
37
111

13
123

13
134

15
133

16
120

15
133

313
560
897
859
790
127

336
597
1,314
885
892
156

400
657
5
1,524
851
1,084
229

92
236
1,446
975
560
29

96
235
2,016
770
642
37

147

146
167
223
5,608

133
219
283
5,834
1
*

55
199
4,663
1
*

592

734

1,425

920

1,281
7 574
455
32

1,161

1,908

1,590

197
5,467
1
*
613

607
1,376

113
500
371
32

40
608
413
34

61
273
1

72
233

4,259 J3,889
941 M.706
3

196
109
105
16
135

4

912
244
2,242
959
813
e 131

63
62
139
146
225
287
4,730 5,080
1
1
*
*

302
318
351
7
7 659
264
906
356
323
371
43
47
40
21,128 22,750 22,944 17,214 19,672 21,524
(14,297) (16,776) (18,714)
(2,917) (2,896) (2,810)

"Less than one-half million dollars.
1
Includes advances from foreign assistance and special export programs of $2,492 million in
2
Includes $549 million of receipts from sale of certificates of participation under proposed legislation.
3
Includes gross expenditures of $71 million and applicable receipts of $66 million under proposed
legislation to establish a revolving fund for consumer protective marketing and regulatory programs.
4
Includes $801 million of receipts from sales of participation in pooled loans under proposed legislation.
s Includes $383 million of receipts under proposed legislation for participation sales for FNMA.
Also includes gross expenditures of $88 million and receipts of $342 million in 1967 under proposed
legislation authorizing FNMA to sell participations in mortgages and other obligations of other agencies.
o Includes receipts of $78 million from sale of participations under proposed legislation for public
facility loans.
7
Includes gross expenditures of $216,525 thousand in 1967 and receipts of $350,000 thousand in
1966 and $599,817 thousand in 1967 under proposed legislation to sell participation certificates.




SPECIAL ANALYSES

387

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 Department of
Housing and Urban Development. Table B-2 reflects all such new
obligational authority.
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 lapses of obligational authority.
The effect of these capital transactions, together with expenditures
and receipts, upon the public enterprise fund group may be summarized as follows (in millions of dollars):
Balances, start of year:
Cash and securities
Undrawn authorizations
Adjustments from other funds, net
New obligational authority
Restoration of undrawn authorization
Transfers from other funds
Applicable receipts

1965
8,301
25,297
148
5,962
22
19
17,214

1966
8,675
26,280

1967
11,515
27,235

7,921

6,053

165
19,672

21,524

Total available

56,964

62,713

66,327

Gross expenditures
Transfers to other funds
Writeoffs of authority
Balances, end of year:
Cash and securities
Undrawn authorizations

21,128
14
867

22, 750
8
1, 205

22,944
16
483

8,675
26,280

11,515
27,235

14,240
28,643

56,964

62,713

66,327

Total application and balances

Where the new obligational authority consists of authorizations to
expend debt receipts or appropriations to provide capital, rather than
to make up deficits or finance losses, it is customary for the amounts
thereof to become interest bearing when used or when credited to
the fund.
Upon the creation of new revolving funds, to finance programs
previously financed otherwise, capital may also be provided by the
transfer of assets, including appropriation balances, into the new
fund. Liabilities and obligations are taken over, also. This budget
proposes the conversion of several programs to a revolving fund
basis, among them the three power administrations in the Department of the Interior.
Minor adjustments in capital occasionally include other transfers
to or from appropriations when authorized by law, and the transfer
of real or personal property into or out of a fund.




388

THE BUDGET FOR FISCAL YEAR 1967

Table B-2. NEW OBLIGATIONAL AUTHORITY AND WRITEOFFS OF
PUBLIC ENTERPRISE FUNDS (in millions of dollars)
Nev f obligational

Writeoffs (including
capital transfers)

authority

Description
1965

1966

1967

1.053
133

1,121
26

24

32

2,528

*

*

1965
actua

a

Funds appropriated to the President:
Economic assistance
Other
Department of Agriculture:
Commodity Credit Corporation
Farmers Home Administration
Other (proposed legislation)
Department of Commerce
__
Department of Defense—Military
Department of Health, Education, and
Welfare
Department of Housing and Urban Development:
College housing loan fund
Urban renewal fund
Federal National Mortgage Association
Public Housing Administration
Other
Department of the Interior:
Existing legislation
Proposed legislation
Department of Labor
Post Office Department
.
Treasury Department
General Services Administration
Veterans Administration
Other independent offices:
Export-Import Bank of Washington
Small Business Administration 12
Tennessee Valley Authority
Other

Total

1.199
24
2

1.932
3
162

60

2

3,568
102
20
105
*

300
750
225
114

71

2

1966

85

1967

32

303

2

3

300
689
100
264
242

280
212

63
82

65
93

930

836

741

(7)

324
1
1
2

4

242
*
12

27

1
25

65 7

*

t

17
250
1

*

135

150

10 i

"61

50

781

9

50

50

7
11

*
*
60

145
48

310
59

64

53

59

58
*

5.962

7,921

6,053

867

1,205

483

* Less than one-half million dollars.
1 Excludes transfer of $
$74 million from the military assistance appropriation to the Foreign milie
y
tary sales fund.
tary sales fund.
3
E l d
d
i
d
f
il
t f
h
d
Excludes i
increase or decrease in advances from special programs, net of research expenditures
reported elsewhere, amounting to $18,850 thousand in 1965, —$1,433 thousand in 1966, and —$7
million in 1967.
_
_
. . .
. . , ™ . « , .,

and $84,276 thousand for Bonneville Power Administration.
!0 Excludes unobligated balance of $692 thousand transferred to "Salaries and expenses. Mexican
farm labor program."
. .
m
11
Excludes unobligated balances transferred to Veterans insurance and indemnities appropriation
of 12 million in 1966 and $8 million in 1967.
$7
Estimates for 1966 and 1967 include reductions under proposed legislation. It is estimated
that $292 million of program obligations will be financed by such legislation.




389

SPECIAL ANALYSES

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, and the undrawn
authorizations to obtain capital from the Treasury, to borrow, or
(in two cases) to contract in excess of their cash availability.
Table B-3. BALANCES OF PUBLIC ENTERPRISE FUNDS (in millions of dollars)

Description

Cash balances in Treasury
and U.S. securities as of
June 30

Undrawn authorizations as
of June 30

1965
actual
Funds appropriated to the President:
Economic assistance
Other
Department of Agriculture:
Commodity Credit Corporation
Farmers Home Administration
Other.—
Department of Commerce
Department of Defense—Military
Department of Defense—Civil (Panama
Canal Company)
Department of Health, Education, and
Welfare
.
Department of Housing and Urban Development:
College housing loans
Urban renewal fund
Federal National Mortgage Association.
Federal Housing Administration
Public Housing Administration
Other
Department of the Interior:
Existing legislation.
Proposed legislation
Department of Labor
Post Office Department
Treasury Department
General Services Administration
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.

1966

1967

3,094
9

3,166
183

3,310
173

154
115
41
129

56
306
^58
178

2 2,418
132

19

21

52
3 851
4
52
205
21

5

7

1
0

1
0

6
3

4

79
393
37
987
89
301

79
1,145
153
678
103
446

79
1,473
•457
702
112
496

892
3,855
4,779
223
1,500
956

951
3,430
4,807
415
1,500
930

48

34
120
305
545
*

31
115
309
627
*
*
1,828

16

5

266

205

145

230

5,487

5,968

6,000

3,000
1,000

3,000
1,000

3,000
1,000

750

750

750

303
501
*
*
700

1,509

1965
actual

1966

199
44

1967
estimate

199
292

199
144
2

3,526
18

2

3,985
106

300
1
0

6

1,321
267
34
142

1,583
8
628
52
153

1,934
8
960
49
161

8,675

11,515

14,240

5
6

1,463
3,430
4,979
499
1,500
7
983

280
430
355
21
22
21
26,280 27,235 28,643

*Less than one-half million dollars.
1
Includes adjustment of —$12,175 thousand for unexpended balances of funds transferred from
the appropriation "Removal of surplus agricultural commodities (sec. 32)."
2 Includes unfunded balance of contract authority of $1,029,019 thousand in 1965, $1,773,963
thousand in 1966, and $708,281 thousand in 1967.
3
Includes cash of $549 million from sale of certificates of participation under proposed legislation.
4
Includes cash of $20,360 thousand in 1966, and $15,234 thousand in 1967 under proposed legislation to establish a revolving fund for consumer protective, marketing, and regulatory programs.
5
Includes $501 million from sale of certificates of participation under proposed legislation.
8 Cash includes $252,993 thousand and undrawn authorizations include —$66,735 under proposed
legislation to sell participations.
? Includes $77,700 thousand from sale of participations under proposed legislation for public
facility loans.
8
Includes the net effect on cash because of sale of participations under proposed legislation.




390

THE BUDGET FOR FISCAL YEAR

19 67

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 (HUD).
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 $37.9 billion in 1967, with receipts of $41.6 billion, as shown in
table B-4. The transactions of the Federal old-age and survivors
insurance fund are somewhat more than half of the totals.
Table B-4. EXPENDITURES AND RECEIPTS OF T R U S T F U N D S
(in millions of dollars)
Expenditures

Receipts

Description
1965

Federal old-age and survivors insurance
trust fund
Federal disability insurance trust fund
Federal hospital insurance trust fund
Federal supplementary medical 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
Deposit funds
Interfund transactions (table 14, note)___
Subtotal
Government-sponsored enterprises

Total.

1966

15,962
1,498

18,848

3,130
1,185
1,410
4,026
616

2,890
1,240
1,617
3,970
543

91
1,189
-210
-638

1,400
1,753
-166
-793

1,940
53

1967

1965

1966

19,877 16,417 17,502
1,942 1,241 1,532
2,426
856
899
2,947
1,274
1,744
4,080
672
500
1,767
-48
-767

1967

21,113
2,110
2,731

4,132
1,342
2,674
3,670
711

3,912
1,412
2,780
3,864
721

1,104
3,923
1,584
2,861
4,381
723

1,500

1,755

1,844

-638

-795

"-767

28,258 33,293 37,313 31,047 33,539 41,608
1,379
493
569
29,637 33,786 37,882 31,047 33,539 41,608

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. The
Secondary market operations fund of the Federal National Mortgage
Association is the most significant in this group.




391

SPECIAL ANALYSES

Table B-5. TRANSACTIONS OF TRUST REVOLVING FUNDS (in millions of dollars)
Gross expenditures
Description

1965

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, _ _

Applicable receipts

1966

1967

1965

651
459
220

712
1,760
197

741
1,314
101

688
368
389

719
360
42

799
$14
38

1,330

2,668

2,156

1,444

1,121

1,651

_ _.

1966

(797)
(647)

1967

(892) (1,053)
(598)
(229)

Treasury financing.—The principal financing provided by the
general fund to the trust funds is interest paid on public debt investments of the trust funds. The Government also contributes, as
employer, to the employee retirement funds, and under recent legislation, it contributes to the supplementary medical insurance and hospital insurance funds. Such payments are shown in table A-3 in the
special analysis, "Three Measures of Federal Financial Transactions."
Balances available.—Trust fund balances with the Treasury and
U.S. securities are shown in table B-6. These balances are reserved
to carry out the purposes of the trust.
Table B-6. TRUST FUND BALANCES (in millions of dollars)
As of June 30
Description

Total.

Balances available on a cash basis _




1966

1967

19,726
2,264

20,180
2,007

18,835
1,599
803

20,071
1,768
1,108

6,859

8,882
4,188

205
9,858
4,498

13
1,420
2,334

7,861
4,016
16,108
285
6,874
20
1,732
2,544

58,739

Federal old-age and survivors insurance trust fund__.
Federal disability insurance trust fund
Federal hospital insurance trust fund
Federal supplementary medical insurance trust fund.
Unemployment trust fund
Railroad retirement account
Federal employees funds
Highway trust fund
Veterans life insurance funds
Federal National Mortgage Association trust fund...
AH other trust funds
Deposit funds

Balances available on an authorization
(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

1965
actual

1964
actual

3,859

17,271
7,053
8

18,388
480
7,104
8

1,731
2,710

1,807
2,759

61,627

63,259

68,054

70,377

73,501

74,392

78,861

56

36

25

25

-118
105
438
-10,041
-2,077

-133
107
209
-9,982
-2,112

-116
108
175
-10,404
-919

-117
105
393
-10,694
-519

58,739

61,627

63,259

68,054

14,844
641

6,779

179

basis

392

THE BUDGET FOR FISCAL YEAR 1967

The trust fund balances are affected by the transactions as follows
(in millions of dollars):
1965

1966

1967

58,739
31,047
99
89,885
28,258
61,627
89,885

Balances, start of year
Receipts
Borrowingfromthepublic.net
Total available
Expenditures (excluding Government-sponsored enterprises) ^
Balances, end of year
Total application and balances

61,627
33,539
1,387
96,553
33,293
63,259
96,553

63,259
41,608
500
105,367
37,313
68,054
105,367

GOVERNMENT-SPONSORED ENTERPRISES AND ANNEXED BUDGETS

This budget includes with the trust fund expenditures certain
transactions of five Government-sponsored enterprises, stated on a
net basis. The transactions thus reported relate to investments in
U.S. securities and debt issuance for which the Treasury acts as fiscal
agent; amounts equal to the net debt issuance or net disinvestments
of such enterprises are* used as an estimate of net expenditures.
The budget appendix includes detailed budget statements with
respect to seven self-supporting activities. All of the seven are
Federal activities. Three of the Government-sponsored enterprises
are in the annexed budget group. The other two—the Federal land
banks and the Federal home loan banks—are privately owned and
have been omitted from annexed budget coverage.
The principal volume of business in this group consists of loans
made by two mixed-ownership banking systems. The Federal intermediate credit banks—in which the Government interest is still
somewhat over half of the capital—are expected to continue a loan
business of over $5 billion a year. The Banks for cooperatives—in
which the Government interest has declined to less than a third of the
capital—will make loans of about $1.5 billion a year. Repayments of
loans to these enterprises are nearly as large.
Estimates for the Exchange Stabilization Fund of the Treasury for
1966 and 1967 are not available, except for administrative expenses.
Therefore, this title shows only the actual 1965 expenditures and
receipts of that fund. Table B-7 summarizes the expenditures and
receipts of these annexed budgets.
Table B-7. EXPENDITURES AND APPLICABLE RECEIPTS OF ACTIVITIES
COVERED BY ANNEXED BUDGETS (in millions of dollars)
Applicable receipts

Gross expenditures
Description

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
Total
• Not available.




1965
actual

1966

1967

1965

0)

0)

9
1,371
5,356
23

9
1,465
5,451
3

10
1,609
5,888
6

13
19
54
9
1,188
5,194
204

6,903

6,960

7,546

6,680

13
17
113

13
19

13

20

1966

13
20

0)

1967

13
21

0)

9
1,391
5,252
222

10
1,524
5,676
231

6,906

7,475

393

SPECIAL ANALYSES
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/7
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.
Most of the collections reported here are for the sales of supplies
and materials from the Department of Defense stock funds to authorized outside parties. Two Veterans Administration life insurance trust
funds receive credits from optional income settlements and other similar
adjustments, also reflected in this table.
Table B-8. REIMBURSEMENTS FROM NONFEDERAL 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

1965
actual

1966
estimate

8
23
2

5
25
2

5
25
2

,618
11
33
59
3
2
33
77
3
4
7
2
*
184

1,709
11
35
60
3
3
35
109
3
10
10
2
2
186
2,209

1,757
11
138
60
4
2
33
94
3
10
12
2
9
188

2,070

Total

1967
estimate

2,353

*Less than one-half million dollars.

GROSS EXPENDITURES OF THE GOVERNMENT

Table B-9 gives gross 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.
The increase of nearly $30 billion from 1965 to 1967 is largely for
two functions—about $11 billion for national defense, in part due to
the buildup relating to Vietnam; and slightly over $11 billion for
health, labor, and welfare, mostly due to health service for the aged
and the increased expenditures from social economic trust funds.




394

THE BUDGET FOR FISCAL YEAR 1967

Table B-9. GROSS EXPENDITURES OF GOVERNMENT-ADMINISTERED
FUNDS (in millions of dollars)
Function

1965
actual

1966
estimate

1967
estimate

145,784

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 - 3 ) :
Trust fund payments to the administrative budget
Administrative budget payments to trust funds
Receipts from the public netted in conventional totals:
Receipts of public enterprise funds (table B-1)
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.

59,374
5,229
5,610
16,481
3,408
12,535
4,639
33,577
2,372
7,259
10,281
2,468
75
163,310

63,446
5,589
5,313
16,838
3,588
12,745
3,983
38,851
3,799
7,488
10,884
2,577
350
175,451

96,507

106,428

112,847

29,637
210

33,786
166

37,882
48

-194
-3,063

-114
-3,301

-105
-4,318

14,297
797

16,776
892

18,714
1,053

2,070

2.209

2,353

6,903

6,960

7,546

-1,379
145,784

-493

-569

163,310

175,451

52,554
5,041
5,100
16,659
3,143

12,286
2,641
27,721
1,601
6,982
9,665
2,389

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. A few funds in liquidation are retiring earlier
debt issuances. 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 such as the
sale of Federal Housing Administration debentures to Federal National
Mortgage Association; the larger part is from the public and in effect
reduces the Treasury borrowing from the public (see table 11 of part 2).




395

SPECIAL ANALYSES

Table B-10. DEBT ISSUANCES BY GOVERNMENT ENTERPRISES (OTHER
THAN BORROWING FROM THE GENERAL FUND) (in millions of dollars)
Description

1965
actual

1966
estimate

End 1967,
estimate

1967

ing

Borrowing from the public:

By public enterprise funds:
Federal Housing Administration l
_ __
Federal Farm Mortgage Corporation 1 _ _ _
Home Owners Loan Corporation *_ _
Tennessee Valley Authority... _
__ __
By trust funds:
District of Columbia Armory Board ^
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

-153
*
*
70

-143
*
*
100

395

99

1,387

500

20
3,685

185
131
561
547

52
127
326
246

72
182
301
303

807
2,755
4,132
5,299

1,366

2,055

1,315

17,228

-20
-1

_ _

-203
*
*
45

-39

-11

89

4
16
-2
9

18
74
-26
_3

8
30
-1
-3

121
1

6

25

23

244

1,372

2,079

1,338

17,472

134
*

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.__
_
_

_
.._

Total, borrowing from other funds. _ Total, debt issuances by Government enterprises _
_

30
3

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 - l l .
The public debt bought by the various funds enters into the computation of the debt as shown in table 11 of part 2.




396

THE BUDGET FOR FISCAL YEAR 1967

Table B-11. PURCHASES OF U.S. SECURITIES BY GOVERNMENTADMINISTERED FUNDS (in millions of dollars)
Transaction!
Description
1965
actual

1966
estimate

1967
estimate

End
1967,
estimate
outstanding

Investment in Treasury issuances (public debt):

By public enterprise funds:
Housing and Urban Development:
Liquidating programs
Federal Housing Administration
Public Housing Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Coporation
Small Business Administration
Veterans Administration
Maritime Administration
By trust funds:
Federal old-age and survivors insurance trust
fund
Federal disability insurance trust fund
Federal supplementary medical insurance trust
fund
Federal hospital insurance trust fund _
Unemployment trust fund
Railroad retirement account
Federal employees' funds _ _ Highway trust fund
Veterans life insurance funds. _
_ __
District of Columbia municipal government
funds
All other
By Government-sponsored enterprises:
Federal Deposit Insurance Corporation
Banks for cooperatives
Federal intermediate credit banks
Federal land banks
Federal home loan banks
By Exchange stabilization fund._
Total, investments in Treasury issuances

-195
-17
6

3
-120
5
31

3
13

3
469
12
50

207

261
5

351

1,925
5

29
*

28
*

38
2

218
7

461
-263

-1,443
-432

1,200
164

18.523
1.608

790
1,003
174
1,156
-105
204

174
296
976
307
1.106
-90
51

174
1.086
9,764
4,396
18,236
70
7,098

-9

2

3

59

-8

29

4

60

180
*
-2
-2
-104

220
1

223

101

100

3,560
45
110
99
1.900

2.349

1.912

4,921

69,734

2
-4

-25
85

-11
38

90
150

1

-6
-25

-4

4

967
149
1.251
103

-60

257

Investments in issuances of other funds:

By public enterprise funds:
Federal Housing Administration
Federal National Mortgage Association
By trust funds:
Federal National Mortgage Association
Veterans Administration
District of Columbia municipal government
funds
Total, investments in issuances of other
funds
__
_ _
Total, investments in U.S. securities

7

6

25

23

244

2,355

1,936

4,944

69,978

Note.— Negative figures represent net reduction of investments.
"Less than one-half million dollars.




-4

SPECIAL ANALYSIS

C

CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH

Following 3 successive years of relatively stable Federal civilian
employment, the buildup of military support for Vietnam operations,
coupled with the conversion of military to civilian positions in the
Department of Defense and rising postal and other workloads, will
cause Federal employment to rise in fiscal years 1966 and 1967.
Every agency head has been directed to keep the work force at minimum levels by eliminating functions, consolidating operations, closing
unnecessary offices and installations, and abolishing vacancies. In
order for this program to achieve maximum results, primary attention
is being given to controlling employment in full-time permanent
positions.
FULL-TIME PERMANENT CIVILIAN EMPLOYMENT

Vigorous action by agency managers to carry out the frugality and
manpower control directives of the President has resulted in maintaining the same level of permanent full-time civilian employment
for the past 3 years—approximately 2,230,000.
The 1967 budget estimates that by June 1966 civilian employment
in full-time permanent positions will be 2,365,000. Since the 1966
budget was originally submitted last January, two major factors have
led to an increase in end-of-year civilian employment estimates:
First, the increased Defense and foreign assistance activities
associated with the heightened conflict in Vietnam, requiring
a rise of 79 thousand civilian employees;
Second, a series of management improvements which reduce
Government costs—chiefly a reduction in Post Office overtime
and the conversion of a number of Defense Department positions from military to civilian occupancy. These cost reduction actions will save money but require, in 1966, the
substitution of 66 thousand civilian employees for other
higher-cost employment services.
Aside from employment increases for these two purposes, civilian
employment at the end of June 1966 is estimated to be 20 thousand
lower than projected in last January's budget.
Approximately 56% of all Federal civilian full-time permanent
employment for June 1967, other than for Defense military activities, will be in three agencies: Post Office, Veterans Administration,
and Health, Education, and Welfare. Another 22% is found in
Agriculture, Treasury, Interior, Commerce, and the General Services
Administration. The remaining 22% is accounted for by more than
60 smaller agencies of the Government. Estimated civilian employment for the military activities of the Department of Defense, includ397




398

THE BUDGET FOR FISCAL YEAR 1967

Table C-1.

SUMMARY OF FULL-TIME PERMANENT EMPLOYMENT IN
THE EXECUTIVE BRANCH
As of June
Agency

1965
actual

1966 estimate

1967
estimate

Increase
1967
over
1966

In 1966
budget

Current

461,211

458,134

481,250

500,000

18,750

81,741
147,007
56,716
80,103
29,162
83,494

88,094
149,331
58,000
82,214
30,400
89,400

92,500
145,700
57,540
81,070
30,360
85,000

99,010
150,850
59,500
82,850
31,840
86,200

6,510
5,150
,960
,780
,480
,200

13,427
35,370
14,713
255,141

14,458
38,450
15,528
264,805
2,030

14,300
35,750
14,900
258,130
1,900

15,350
36,750
15,750
260,600
4,800

,050
,000
850
2,470
2,900

1,258,085 1,290,844 1,298,400 1,343,500
Subtotal
----.-:
Department of Defense, Military and
950,287 1,067,000 1,073,000
974,668
military assistance

45,100

2,232,753 2,241,131 2,365,400 2,416,500

51,100

Post Office Department
Department of Health, Education, and
Welfare
.
Veterans Administration
Department of the Interior
Department of Agriculture
Department of Commerce
Treasury Department
Department of Housing and Urban Development
General Services Administration
Agency for International Development
Employment in other civilian agencies
Allowance for contingencies

Total.

6,000

ing military assistance, is 44% of the total full-time permanent
employment for June 1967.
The most significant changes for 1967 compared with 1966 are
shown in table C-1. Of the total increase of 45,100 for the civilian
activities of the Government, 18,750 or 42% is for the Post Office,
and 6,510 or 14% is for the Department of Health, Education,
and Welfare.
Most of the added Post Office employment is to reduce still further
the large amount of overtime which many postal employees have often
been working, in some cases making their total workweek as much as
70 hours. An estimated 4.5% increase in mail volume, offset by a
continued advance in productivity, accounts for the remaining increase
in postal employment.
Almost 60% of the 1967 increase in employment for the Department
of Health, Education, and Welfare is attributable to recently enacted
legislation for hospital insurance for the elderly, and aid to elementary,
secondary, and higher education. The remaining 40% is principally
for water pollution control, direct medical care in Public Health and
Indian hospitals, and increased surveillance over dangerous drugs and
other toxic substances. The Social Security Administration is achieving a productivity improvement of 2.5% per year, principally by
automating the recomputation of benefits, with a saving of 1,742
man-years in fiscal year 1967. In addition—




SPECIAL ANALYSES

399

• The increase in the Veterans Administration is principally to
provide for the 82% rise in nursing home beds, the initiation and
expansion of the use of new medical techniques in hospitals for
veterans, and an improved quality of medical care for veterans.
• The growth in the Department of the Interior is chiefly to take
care of education of Indians on Government reservations; support
to the Office of Economic Opportunity for the Job Corps; new power
facilities; the Northwest-Southwest intertie; and anticipated increase of about 7% in visitors to the national parks.
• The increase in the Department of Agriculture is mainly to
provide for uncontrollable workload in meat and poultry inspections, expanded loan activities, and more visitors to the national
forests; it also provides for support to the Office of Economic
Opportunity, and for expansion of resource development projects.
• The increase in Treasury is primarily for rising workloads in
Internal Revenue operations due to an increase in the number of
tax returns of 1.3%, and the accelerated efforts in the Bureau of
the Mint to expand coin production, which will result in an increase
in the number of coins minted by 35% over 1966. Were it not for
anticipated improvements in productivity a substantially larger
number of employees would be required. The Bureau of Customs
will handle a 5% increase in inspectional workload with a 1.6%
increase in inspectors, an increase in productivity of 3.4%.
• 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.
• A decrease in employment for the Federal Aviation Agency will
result from an increased productivity of 5% for airways facilities
operation and maintenance and other economy measures.
The following summary breakdown of changes in civilian employment during 1967 indicates the major factors at work:
Cost reduction; conversion of military
to civilian positions and reductions in
Post Office overtime
31.1 thousand
Increase in Post Office workloads
7.8 thousand
Increases in major Great Society Programs—health, labor, education,
housing and community development,
economic opportunity program, and
aid to the needy
8. 7 thousand
Veterans Administration, for improved
medical services
_ 5. 2 thousand
All other
— 1. 7 thousand




400

THE BUDGET FOR FISCAL YEAR 19 67

TOTAL FEDERAL PERSONNEL

Almost nine-tenths of executive branch civilian employment consists
of permanent full-time employees. The remainder is made up of
temporary, part-time, and intermittent workers needed for seasonal
work and special assignments of short duration. In addition, the
total of Federal Government personnel includes military as well as
civilians. The grand total personnel of the executive branch was
5,183,000 in June 1965, and is estimated at 5,663,000 for June 1966,
and 5,831,000 for June 1967. Employment of the legislative and
judicial branches in June 1965 was about 32,000 in addition.
As of June
1965

1966

2,653,142 2,987,343 3,093,109
1,841
2,343
2,331
31,776
34,153
35,336

Total executive branch personnel
Legislative and judicial personnel

5,182,849 5,663,039 5,830,776
31,851 —
= =====

Total

actual
estimate
2,232,753 2,365,400
1
263,337
273,800

1967

Civilian employment in the executive branch:
Permanent full time
Other than permanent full time
Military personnel:
Department of Defense
.
Reimbursable details to other agencies
Treasury Department (Coast Guard)

estimate
2,416,500
283,500

5,214,700

1 Includes 25,860 appointments under the President's youth opportunity campaign.

GEOGRAPHICAL DISTRIBUTION OF CIVILIAN EMPLOYMENT

Table C-2 presents data on the geographical distribution of Federal
employment. Most Federal employees—almost 83%—work in the
various States. A little over 11% are located in the Washington,
D.C., metropolitan area. An additional 6% are in foreign countries
and in U.S. territories and possessions. Federal employment in
foreign countries has decreased by 3,726 since 1960. This has benefited our balance-of-payments position, as well as reduced costs.
PERSONNEL COMPENSATION AND BENEFITS

Estimates of the Federal payroll and related costs are shown in
table C-3. Direct compensation includes regular pay, and special
pay for overtime, holiday, and standby time, differentials for nightwork and oversea 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;
cost-of-living and quarters allowances; uniform allowances (when paid
in cash); and, in the case of the military personnel, allowances for
subsistence, reenlistment bonuses, and certain other cash payments.




401

SPECIAL ANALYSES

Table C-2. FEDERAL CIVILIAN EMPLOYMENT BY GEOGRAPHICAL
LOCATION (as of June 1965)
Location

Total i

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
New Mexico
New York
North Carolina
North Dakota

2 280,019
61,915
14,006
22,049
15,327
251,375
36,605
15,596
3,584
55,044
62,363
23,044
7,151
101,315
34,832
17,416
20,470
28,377
24,846
14,847
51,194
61,129
45,780
26,866
18,172
55,339
9,781
15,593
7,133
4,437
56,033
24,534
177,187
31,688
7,282

Total i

Location

Ohio
Oklahoma
Oregon
Pennsylvania-_
Rhode Islands
South Carolina _
South Dakota.Tennessee
Texas
Utah
Vermont
Virginia 3
Washington
West Virginia. _
Wisconsin
Wyoming

93,764
45,806
21,518
131,687

12,997
24,596
9,417
37,457
124,386
29,101
3,157
70,736
47,405
11,725
22,410

5,088

Total United States
Outside United States:
Territories and possessions
Foreign countries

2,373,579
I
j

Total outside United
States

4

33,309
121,053
154,362

Total employmentLegislative and judicial

2,527,941
-31,851

Total employment, executive branch
Other than full-time permanent, _

2,496,090
-263,337

Total, full-time permanent
employment, executive
branch

2,232,753

1
2

Distribution by State is partially estimated.
Includes 255,199 employees of the executive branch and 24,820 of the legislative and judicial
anches.
branches.
Drancnes.
3
Excludes employment within the Washington, D.C., metropolitan area, which includes the District
of 4Columbia, and the adjacent counties and cities in Maryland and Virginia.
Includes 105,519 foreign nationals classified as Federal employees; excludes 130,451 foreign
nationals working for Department of Defense under contract agreements, or other arrangements
with foreign governments which provide for the furnishing of personal services.

The obligations to be incurred for civilian personnel compensation
and benefits in 1967 are estimated at $21.2 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 $15.4 billion.

200-000 0—6-6




26

402

THE

BUDGET FOR FISCAL YEAR

1967

Table C-3. ESTIMATED PERSONNEL COMPENSATION A N D BENEFITS
In millions of doll arsl

[Fiscal years.
Description

Total

18,900
1,500

19,600
1,600

20,400

21,200

550
50

700
50

700
50

750

750

4,200
300

4,500
350

4,700
400

4,850

5,100

12,700
1,050

13,700
1,100

14,200
1,150

13,750

___

17,450
1,400

4,500

___

1967

600

_

1966

18,850

Total civilian personnel costs:
Direct compensation
Personnel benefits.
_

1965

14,800

15,350

8,800
2,750

10,000
3,000

10,900
3,200

11,550

13,000

14,100

1

Civilian personnel costs of trust funds:
Direct compensation
Personnel benefits
_ _ _ ______

_

_

_____

Total
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: 2
Direct compensation
_
Personnel benefits
Total
1
2

______
.. -

_

Includes annexed budget agencies.
Excludes Reserve components.

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 with private
industry pay for the same work levels, and in pay scale changes
effective in October 1962, January 1964, July 1964, and October
1965, 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.
Special efforts were made last year, and again in the preparation
of this budget, to hold down unwarranted escalation in average grades
and salaries. In 1965, for the first time in a long period, there was
no Government-wide change in average grade of Classification Act
employees. Average salaries showed only a slight advancement (apart
from changes in pay scales), mostly due to within-grade salary advancements and reclassifications of new positions in certain agencies.




SPECIAL ANALYSES

403

CHANGE IN POSITION STRUCTURE

Changes have taken place in the position structure as a result of
changes in the character of the Government's workload and in the
employee skills required to deal with it. For example, between 1954
and 1965, greater specialization and emphasis on research and development led to an increase of 53% in the number of engineers in the
Federal service, and 83% in the number of physical scientists. During
this period, the Government's need for professional medical personnel
rose 31% and for biological scientists, 46%. 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—decreased the need for unskilled employees.
A recent analysis made by the Civil Service Commission shows the
following changes in position structure of Classification Act employees
between 1961 and 1965:
• Reduction in percentage of clerical and aide jobs (GS-1 to
GS-6) from 53.2% to 47.3% of total employment.
• Increase in percentage of professional, technical, and administrative jobs (GS-7 to GS-15) from 46.7% to 52.4% of total employment.
• Increase in GS-16 to GS-18 jobs from 0.1 to 0.3% of total
employment.
During this period many new programs were initiated and ongoing
programs were reoriented in scope and complexity with a resulting
greater need for higher level professional and technical personnel.
Continued vigilance is being exercised to assure that Federal agencies
do not adopt topheavy organization and position structures.
TRENDS IN NUMBERS OF EMPLOYEES AND WORKLOAD

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 1967, for example, the participants in
the food stamp program will rise 44%; the square nautical miles surveyed by the Coast and Geodetic Survey will increase 19%; the
number of passport applications mil rise 10%; coins minted will increase 35%; subsidized school lunches served will be up 6%; takeoffs
and landings at airports served by Federal towers will increase 10%;
establishments with Federal meat inspectors will rise 5%; the number of pieces of mail deposited in the post office will be up 4%; and
customs inspections of packages will rise 4%. The staffing for new
programs such as hospital insurance for the elderly, and increased
demands for services can be accommodated only by increased productivity or additional workers, or a combination of both.
The continuing concerted effort to utilize Federal employees more
effectively, to improve work methods and organization, and to utilize
new techniques to achieve improvements in productivity have resulted
in holding Federal employment to much lower levels than otherwise
would have been possible.




404

THE BUDGET FOR FISCAL YEAR

1967

Government Civilian Employment

Over the past decade, in fact, total Federal civilian employment
(including temporary and part time) has not risen in step with related
factors. For example:
• In 1955, there were 14.3 Federal civilian employees for every 1,000
people in the Nation; in 1965, this number was reduced to 12.8.
Excluding the buildup of civilian support for Vietnam operations by
the Department of Defense, Federal employment per 1,000 population is expected to remain at approximately the 1965 level in
both 1966 and 1967.
• In 1955, one out of every three public civilian employees worked
for the Federal Government, and the other two for State or local
government units. In 1965, this ratio was one out of four, and it
will continue to drop.




405

SPECIAL ANALYSES

A historical comparison of total Federal civilian employment in
the executive branch (including temporary and part-time employment) with employment by State and local governments and U.S.
population for 1942-67 is shown in table C-4.
Table C-4. GOVERNMENT EMPLOYMENT AND POPULATION, 1942-67
Government employment
Year

1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
-_
1957
1958
1959
I960
1961
1962
1963
1964
- _
1965
1966 (estimated) 4 ....
1967 (estimated)*____

Population

Total
Federal emexecutive local governmental
percent of
United
ployment
branch1
ments
units
all governStates
per 1,000
(thousands) (thousands) (thousands) mental units (thousands) population

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
2 2,371
2,407
2,485
3 2,490
3 2,469
2,496
2,639
2,700

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
6,834
7,236
7,659

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
9,324
9,705
10,155

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
26.7
25.4
24.6
24.6
24.0

135,361
137,250
138,916
140,468
141,936
144,698
147,208
149,767
152,271
154,878
157,553
160,184
163,026
165,931
168,903
171,984
174,882
177,830
180,684
183,756
186,656
189,417
192,119
194,583

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

12.8
13.4
13.6

1
Covers total end-of-year employment in full-time permanent, temporary, part-time, and intermittent positions.
2
Includes piece-rate census workers employed for the decennial census.
3
Excludes 7,411 project employees in 1963 and 406 project employees in 1964 for the public
works acceleration program.
4
An official projection of population and of State and local government employment for 1966
and 1967 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.




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. 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 are also covered.
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.
406




407

SPECIAL ANALYSES

Table D-l. SUMMARY OF INVESTMENT, OPERATING, AND OTHER
EXPENDITURES (in millions of dollars)
Administrative budget funds
Description

Additions to Federal assets:
Civil:
Loans and financial investments
Physical assets
National defense
__
Additions to State, local, and private
assets:
Civil
National defense
_
Developmental expenditures:
Civil
National defense
Subtotal, investment and developmental type expenditures:
Civil
National defense __
Current expenses for aids and special
services:
Civil
National defense
Retirement and social insurance benefits—
civil
_Other services and current operating expenses:
Civil:
Interest
Other
National defense
District of Columbia, deposit funds, and
other unclassified items
Allowances and contingencies
Interfund transactions
Grand total

1965

1,873
2,603
14.007

1966

1967

67 -2,338
3,309
3,208
16.272 17,854

Trust funds
1965

1966

1967

425
50

1,812
64

889
74

1,535
19

1.694
17

2,170
21

5,140
1

4,303
2

4 398

8,084
7,884

10.502
8.045

12,538
8,090

72

77

81

14,094
21,910

15.573
24.334

15,580
25,965

5,687
1

6,256
2

5 442

17,807
1,333

18,986
1,330

20,370
1.149

2,693

2 976

745

867

3 474

20,246

23,274

27,452

-30
6

208
6

224
6

*

*

891

11.435
3,878
26,920

12,104
3,777
30,897

75

350

928

992

1,158

-870

-647

-712

-638

-795

-767

96,507 106,428 112,847

29,637

33,786

37,882

12,854
3,865
33,426

"'Less than one-half million dollars.

2. Additions to State, local, and private assets.—Federal outlays under
this heading add to State, local, and private assets. Grant-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, waste-treatment
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 farmland
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 (Government-sponsored
enterprises in which the Federal Government no longer holds any




408

THE BUDGET FOR FISCAL YEAR 1967

capital stock); these loans strengthen lending institutions which
promote farming and individual home ownership.
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.




SPECIAL ANALYSES

409

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
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.




410

THE BUDGET FOR FISCAL YEAR 1967

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

1965

1966

1967

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 Adminstration
Farmers Home Administration:
Direct loans
,
Agricultural credit insurance
Rural housing insurance
Emergency credit revolving fund
Participation sales__
Other
Department of Commerce: Economic development and
other
Department of Health, Education, and Welfare:
Higher education facilities construction
Defense educational activities
Public health service and other
Department of Housing and Urban Development:
College housing loans
Housing for the elderly or handicapped
Federal National Mortgage Association:
Management and liquidating functions
Special assistance functions
Government mortgage liquidation
Participation sales
Federal Housing Administration
Other
.-----Veterans Administration:
Housing loans:
Veterans direct loans
Loan guarantee revolving fund
Other
Federal Home Loan Bank Board
Small Business Administration: Revolving fund and other.
Other agencies
Total, to domestic private borrowers, civil.




17

30

25

-303
381

-217
190

-1,309
194

230
17

28

25
7
32
1

52
-98
-6
1
-560
1

48

41

47

2
131
16

55
179
28

30
32
3

157
43

151
56

-318
69

-102
-371
-23

-289
-351

-130
77
-242

-390
-35
14

-40
—3

29
232
2

-647
-134
2
24
-50
3

448

-936

-107
62
3

-206
-56
2
-20
-410
1
-3,233

411

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars) —Continued
Description

1965
actual

1966
estimate

1967
estimate

Administrative Budget Funds—Continued
ADDITIONS TO FEDERAL ASSETS—Continued

Loans—Continued
Civil—Continued
To State and local governments:
Department of Health, Education, and Welfare: Office of
Education
Department of Housing and Urban Development:
College housing loans
Public facility loans
Urban renewal fund
Other
District of Columbia
Other agencies

69
38
47
18
21
31

Total, to State and local governments, civil _

23
2

23
1

-106

1,094

1,050

~-217

1,050
17
-399

—203

86
7

68
6

86
4

1,547

-55

-2,492

-4

-2

-2

27

-42

3
5

24

-44

3
3

1,570

-99

-2,459

6
7

50
10

50
10
70

75
-12

36
-12

36
2

12
2

14
5

17
33

78
*
104
16

3
0

To foreign borrowers:
Funds appropriated to the President: Economic assistance.
Department of State: Loan to the United Nations
Export-Import Bank of Washington
Total, to foreign borrowers, civil.
Total, loans, civil
National defense:
To domestic private borrowers: Other agencies
To foreign borrowers: Funds appropriated to the President:
Military assistance
Total, loans, national defense.
Total, loans

27
-202
-52
22
10
46
42

Other financial investments—civil:

Investments in quasi-public institutions, trust funds, and
international institutions:
Funds appropriated to the President:
Economic assistance
Asian Development Bank
_
International Development Association
International Monetary Fund
Department of Housing and Urban Development: Federal
National Mortgage Association
Other agencies
-Total, investments in quasi-public institutions, trust
funds, and international institutions

62
259
-42
-19

Public works—sites and direct construction:

Civil:
Funds appropriated to the President:
Economic opportunity program
Public works acceleration
Department of Agriculture:
Forest Service
Other
•Less than one-half million dollars.




100
2

120
21

412

THE BUDGET FOR FISCAL YEAR 1967

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965

1966

1967

Administrative Budget Funds—Continued
ADDITIONS TO FEDERAL ASSETS—Continued
Public works—sites and direct construction—Continued

Civil—Continued
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
Total, public works, civil
National defense:
Department of Defense—Military:
Military construction
Family housing
Other
Atomic Energy Commission

896
10

967
16

26
10

36
15

1,000
15
42
32

72
64
246
38
38
56
17

49
59
236
66
50
15
26

67
60
219
102
44
40
29

28
*
81
223
531
81
135
64
2,773

18
12
67
250
495
83
174
89

40
19
77
246
300
73
192
87

2,924

2,859

175

35
1
160

Total, public works, national defense

996
149
*
206
1,351

1,458

1,307

Total, public works, sites and direct construction

4,125

4,381

4,166

-446
13

-197
17

20

-433

-180

-67

-73
30

-137
16

-182
13

-43

-121

-169

-476

-301

-236

1,132
150

Major commodity inventories:

Civil:
Department of Agriculture: Commodity Credit Corporation: Agricultural commodities
Department of the Interior
Total, major commodity inventories, civil
National defense:
Funds appropriated to the President: Expansion of defense
production
Other agencies
Total, major commodity inventories, national defense
Total, major commodity inventories
*Less than one-half million dollars.




413

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars) —Continued
Description

1966

1965
actual

1967

estimate

Administrative Budget Funds—Continued
ADDITIONS TO FEDERAL ASSETS—Continued
Major equipment:

Civil:
Post Office Department
Treasury Department: Coast Guard._
Other agencies

54
28
25

60
56
38

61
40
30

107

154

130

11,495
159
-1

13,991
165

15,793
145

Total, major equipment, national defense _

11,653

14,156

15,938

Total, major equipment

11,761

14,310

16,068

2
25
52

25
25
70

55
25
67

289

17

-13
16

158
-34
16

Total, other physical assets, civil_

156

411

286

National Defense:
Department of Defense—Military__
Atomic Energy Commission

155
867

155
669

155
590

Total, other physical assets, national defense

1,022

824

745

Total, other physical assets—acquisition and improvement.

1,178

1,235

1,031

18,483

19,648

18,724

258

117

45
14

44
46

50
42

8

13
3
63
*

73
16
101
*

Total, major equipment, civilNational defense:
Department of Defense—Military.
Atomic Energy Commission
Other

Other physical assets—acquisition and improvement:

Civil:
Funds appropriated to the President: Economic Opportunity Program
Department of Agriculture
Department of the Interior
Department of Housing and Urban Development: Federal
Housing Administration and other
Veterans Administration
Other agencies

Total, additions to Federal assets

109
-50

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:
Economic Development Administration
Office of Appalachian Assistance
Bureau of Public Roads: Forest highways and other
National Bureau of Standards
*Less than one-half million dollars.




"38"

414

THE BUDGET FOR FISCAL YEAR 1967

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965

1966

1967

Administrative Budget Funds—Continued
ADDITIONS TO STATE, LOCAL, AND PRIVATE
ASSETS—Continued
State and local assets—Continued
Civil—Continued
Department of Health, Education, and Welfare:
Vocational education
Higher education facilities
School construction in federally affected areas
Regional medical programs
Hospital construction activities
Waste treatment works construction
Other: Public health and other
Department of the Interior:
Land and water conservation
Other
—.
Federal Aviation Agency: Grants-in-aid for airports
Department of Housing and Urban Development:
Open space land and urban beautification
Grants for basic water and sewer facilities. __
__
Urban mass transportation fund
Other.....
Other agencies

National defense: Department of Defense—Military.
Total, State and local assets
Private assets—civil:
Funds appropriated to the President: Public works acceleration
Department of Agriculture:
Soil conservation
Agricultural stabilization and conservation
Commodity Credit Corporation
Other..
Department of Commerce: Merchant ships and other
Department of Health, Education, and Welfare:
Health educational facilities, construction
Private hospital construction
Health research facilities
Other...
National Science Foundation
Other agencies.
Total, private assets

_'

Total, additions to State, local, and private assets.




39
163
30
35
70
83
62

71

38
11
65

46
27
60

"\2

18
1
21
1
28

29
51
52
12
45

653

747

1,094

19

17

21

672

Total, State and local assets, civil.

5

33
51
35
5
60
77
19

764

1,116

21
29"

64
70

6

10

1

30

125
430
a
1
92

133
402
33
1
110

133

582
-45
1
95

16
50
3

44
146
40
25
50
2

882

947

1,075

1,554

1,711

2,191

124
33
6
40
2

24
130
37

415

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965
actual

1966
estimate

1967
estimate

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, and Welfare:
Office of Education:
Vocational education
Payments to school districts
Defense educational activities
__
Higher education facilities construction
Grants for public libraries
....
Elementary and secondary educational activities
Higher educational activities
Other
-Vocational Rehabilitation Administration
Public Health Service:
Chronic diseases and health of the aged.
Community health
National Institutes of Health
Indian health activities
Other
Water Pollution Control Administration.
Welfare Administration:
Grants, maternal and child welfare
Other
Other
Department of the Interior:
Bureau of Indian Affairs: Education and welfare
Other
Department of Labor:
Manpower development and training
Other.....
.
National Science Foundation
Other agencies

114
85

720
90

1,102
90

103
311
136
2
25
53
117

132
307
137
30
25
295
77
69
190

158
222
185
86
27
,200
302
85
284

47
43
193
62
75
21

59
64
236
67
110
28

63
96
275
72
144
46

110
30
13

169
30
14

210
31
16

84
*

89
*

96
*

230
6
114
23

279
24
129
32

282
25
142
43

Total, education, training and health, civil.

1,997

3,403

5,284

National defense: Atomic Energy Commission..

17

17

19

2,013

3,420

5,303

4
7

56
6

56
6

111
47
30
21

130
56
32
21

127
48
34
19

22
23

28
34

25
54

Total, education, training, and health
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
*Less than one-half million dollars.




416

THE BUDGET FOR FISCAL YEAR 1967

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1966

1965

1967

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
Water Pollution Control Administration
Other
.
Department of the Interior:
Geological Survey._.
Bureau of Mines
Other
.
Federal Aviation Agency
_______
National Aeronautics and Space Administration
Veterans Administration
National Science Foundation
Other agencies
Total, research and development, civil
National defense:
Department of Defense—Military:
Military personnel: Research and development
Procurement: Test and evaluation support
Research, development, test, and evaluation
Operation and maintenance
Other. __
--Atomic Energy Commission
Military assistance
Total, research and development, national defense
Total, research and development
Engineering and natural resource surveys—civil:
Department of Agriculture
Department of Commerce
Department of Defense-yCivil
Department of the Interior:
Geological Survey __
National Park Service
Other.--Other agencies
Total, engineering and natural resource surveys
Total, developmental expenditures
CURRENT EXPENSES FOR AIDS AND SPECIAL
SERVICES
Agriculture—civil:
Department of Agriculture:
Consumer and Marketing Service:
Removal of surplus agricultural commodities
Other
Agricultural Stabilization and Conservation Service:
Expenses
Sugar Act




523
67
19
10
31

705
91
48
15
40

769

24
24
56
93
,555
37
147
53

25
24
70
125
5,097
42

26
26
75

178
64

4,993
43
226
79

5,902

6,888

7,030

275
70
6,236
32
10

280
75

275
75

,370
35
10

1,241
3

,256
2

,400
40
10
,270
2

7,867

8,028

8,071

13,769

14,916

15,101

21
25
18

24
27
22

26
24
26

44
28
26
22

43
32
29
34

45
34
26
44

185

211

224

15,967

18,547

20,629

273
18

321
16

186
13

108
92

125
94

135
85

110
78

36
48

155

417

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965

1966

1,293
35
41
23
3,399
200
9

1,114
75
34
38
2,670
301
-2

994
3
41
47
3,565
262
-2

-29

-29

-22

41
-3

49
-9

87
21

87
21

51
4

92
-4

5,609

4,904

5.451

30

33

35

226
62

197
63

186
11

113
-3
174
258
498
80
11
17

128
—7
246
258
492
79
5
37

126
-9
58
291
499
73
86
28

1,466

1,531

1,443

1967

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 supply contracts
Other
Farmers Home Administration:
Direct loans
-_
Salaries and expenses
Other
Other
Other agencies
Total, agriculture
Business:
Civil:
Department of Commerce:
Patent Office
Maritime Administration: Ship operating subsidies and
other
Other
Department of Defense—Civil:
Corps of Engineers: Operation and maintenance
Other
Post Office Department
Treasury Department: Coast Guard: Navigation aids
Federal Aviation Asrencv: Operations
__ __
Civil Aeronautics Board: Payments to air carriers
Small Business Administration
Other agencies
Total, business, civil
National defense: Funds appropriated to the President: Expansion of defense production
___

Homeowners and tenants—civil:
Department of Housing and Urban Development:
Urban renewal
Onv_»rnm_*nt mortffaffe liouidation fund
Federal Housinc Administration
Public housinsr
Other
F#»rWal Hnme Loan Bank Board
Other agencies

36

1,545

1,479

24

Labor—civil: Other agencies

14

1,601

Total, business

134

28

32

200-000 O—66



27

344

390

-1
-182
219
5
-233
*

-14
-189
251
2
-286
*

-41
-238
271
29
-332
*

84
"Less than one-half million dollars.

278

107

78

418

THE BUDGET FOR FISCAL YEAR 1967

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965

1967
stimate

1966

Administrative Budget Funds—Continued
CURRENT EXPENSES FOR AIDS AND SPECIAL
SERVICES—Continued
Veterans—civil:
Department of Health, Education, and Welfare: Payments for
military service credits
Veterans Administration:
Compensation and pensions
Readjustment benefits
General operating expenses...
Hospitals and medical care
Veterans insurance programs
Other....
—
Other agencies
Total, veterans.

105

105

4,109
49
161
1,150
-9
-1
25

4,430
43
161
1,215
-19
13
7

4,365
132
159
1,259
-37
16
21

5,486

5,954

6,021

875
79

994
84

1,096
88

147
-141
25

286
-133
26

283
-106
30

96
8

1,258

1,390

1,316

1,114

2,185

2,573

2,503

43
54

150
299

43
329

87
34
179
*
52

37
133
168

19
3,059
33
68
512
10

89
89
186
*
56
26
23
3,605
41
61
548
31

58
833
31
3,595
54
61
582
30

4,152

5,203

5,955

19,139

20,316

21,520

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.
Other aids and special services—civil:
Funds appropriated to the President:
Disaster relief
Economic opportunity program
Department of Agriculture:
Special milk program
Food stamp program
School lunch program
Other
Department of Health, Education, and Welfare:
Hospitals and medical care
Health insurance for the aged
Assistance for Cuban refugees
Public assistance
Other
--Department of the Interior: Bureau of Indian AffairsPost Office Department
Other agencies
--Total, other aids and special services
Total, current expenses for aids and special services.
"Less than one-half million dollars.




419

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965
actual

1966
estimate

1967
estimate

Administrative Budget Funds—Continued
OTHER SERVICES AND CURRENT OPERATING
EXPENSES
Repair, maintenance and operation of physical assets (excluding
special services):

CiviJ:
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
Southeastern Power Administration
Other
.
__.
General Services Administration: Public buildings
Tennessee Valley Authority
Other agencies

143
110

_.

Total, repair, maintenance, and operation, civil
National defense:
Department of Defense—Military:
Operation and maintenance
Family housing
Atomic Energy Commission
Other agencies
Total, repair, maintenance, and operation, national
defense
Total, repair, maintenance, and operation of physical
assets
Regulation and control:
The Judiciary
Department of Agriculture:
Agricultural Research Service
Other
Department of Health, Education, and Welfare:
Food and Drug Administration
Other
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
Coast Guard
Other_____.
Federal Aviation Agency
Interstate Commerce Commission
National Labor Relations Board
Other agencies._ _
Total, regulation and control
•Less than one-half million dollars.




148
87

29
25
54
1
46
269
-109
37

179
84
27
28
53
-24
7
257
-151
41

26
30
56
-25
7
266
-136
41

66
0

50
0

49
9

12,317
137
136
*

14,125
135
109

14,940
145
116

12,590

14,369

15,201

13,195

14,869

15,701

74

82

91

97
24
33
*
65
160
72
56
28

68
64

61

39
*
69
169
75
54
29

48
*
72
179
75
58
30

78
33
15
40
26
25
92

35
19
41
27
28
97

84
37
20
41
28
30
102

90
2

980

95
6

420

THE BUDGET FOR FISCAL YEAR 196,7

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965

1967

1966

Administrative Budget Funds—Continued
OTHER SERVICES AND CURRENT
EXPENSES—Continued

OPERATING

Other operation and administration:

Civil:
International activities:
Department of State:
Foreign affairs administration _ _
_
International organizations and conferences
Educational exchange
Other
_______
United States Information Agency
Foreign Claims Settlement Commission
Other agencies

Federal financial activities:
Treasury Department:
Bureau of Accounts
Bureau of the Mint
Bureau of the Public Debt
Internal Revenue Service _.
Other
Ceneral Accounting Office
Other agencies

_

__

509

521

32

31

33

27
50
606

35
51
630

12
_

_

Total, Federal financial activities
Other direct Federal programs:
Legislative branch
Department of Commerce:
Environmental Science Services Administration
Other
_
Department of Defense—Civil
Treasury Department: Claims, judgments, and private
relief acts
__
General Services Administration
Civil Service Commission
_
Other agencies
Total, other direct Federal programs
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
Total, retirement, unemployment, and accident comoensation for Federal emolovees




191
107
52
2
162
2
4

15
50
587

_

185
102
53
2
161
2
4

541

Total, international activities

195
93
54
2
159
35
3

12

13

45
5

48
5

49
4

746

780

814

135

149

162

87
12
45

86
6
48

98
7
60

74
101
23
42

34
70
26
52

9
94
23
61

521

472

515

122
53

100
46

100
40

37

42

44

94
4

98
4

106
5

310

289

296

421

SPECIAL ANALYSES

Table D-l. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965

1967

1966

Administrative Budget Funds—Continued
OTHER SERVICES AND CURRENT OPERATING
EXPENSES—Continued
Other operation and administration—Continued

Civil—Continued
Shared revenues and grants-in-aid:
Department of Agriculture: Forest Service
Department of the Interior:
Bureau of Land Management
Other
Treasury Department
_
District of Columbia: Federal payment
Other agencies

34

37

38

69
35
43
38
16

70
38
43
39
22

76
37
45
39
18

234

248

254

2,351

2,298

2,401

14,496
177
58
-464
43
21

16,320
210
76
-160
60
23

17,875
210
74
-12
53
25

Total, other operation and administration, national
defense
_

14,331

16,529

18,224

Total, other operation and administration

16,682

18,826

20,625

11,346

12,000

12,750

77
*
12

91
*
12

91
*

89

104

104

Total, interest

11,435

12,104

12,854

Total, other services and current operating expenses

42,233

46,779

50,145

-870

75
-647

350
-712

96,507

106,428

112,847

_

Total, shared revenues and grants-in-aid
Total, other operation and administration, civil
National defense:
Department of Defense—Military:
Military personnel (excluding research and development) _
Family housing
Civil defense
___
Other.
Selective Service System
Other agencies

_ __ __

Interest:

On the public debt
Other interest:
On refunds:
Treasury Department
_
General Services Administration
On uninvested funds: Treasury Department
Total, other interest __ _

Allowance for contingencies
Interfund transactions
Total, administrative budget funds
"Less than one-half million dollars.




13

422

THE BUDGET FOR FISCAL YEAR 1967

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965

1966

1967

Trust Funds

(Includes deposit funds and Government-sponsored enterprises)
ADDITIONS TO FEDERAL ASSETS
Loans—civil:

To domestic private borrowers:
Department of Housing and Urban Development: Federal
National Mortgage Association: Secondary market operations
Veterans Administration: Life insurance funds
Farm Credit Administration:
Banks for cooperatives
_-_
Federal intermediate credit banks
Other agencies _

49

1,503
40

552

39
189
149
-1

69
201
-I

80
212
-1

425

1,812

889

25
2

28
8

28
14

27

36

43

n

36

43

24

28

31

475

1,876

962

3,919

3,861

3.898

561
660

300
142

300
200

1,221

442

500

1

2

*

Total, private assets

1,222

444

500

Total, additions to State, local, and private assets

5,141

4,305

4,398

*

1

2

Total, loans to domestic private borrowers

45

Public works—sites and direct construction:

Civil:
Department of Defense—Civil: Corps of Engineers and other.
Other agencies
Total, public works, civil

*

National Defense: Department of Defense—Military
Total, public works, sites and direct construction
Other physical assets—acquisition and improvement—civil
Total; additions to Federal assets _

-- -

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

___
_

DEVELOPMENTAL EXPENDITURES
Education, training, and health—civil
'"Less than one-half million dollars.




423

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965

1967

1966

Trust Funds—Continued
DEVELOPMENTAL EXPENDITURES—Continued
Research and development—civil:
Department of Commerce: Bureau of Public Roads and other.
Other agencies

66
5

70
6

74
6

71

76

79

Engineering and natural resource surveys—civil

*

*

*

Total developmental expenditures

72

77

81

1

2

2

42
17
-180
*

40
28
-220
*

42
37
-223
*

-121

-151

-144

441

502

557

*

-28

-16

578
7

507
7

628
7

585

514

636

6

11

10

745

867

891

750

877

901

Total, research and development

CURRENT EXPENSES FOR AIDS AND SPECIAL
SERVICES
Agriculture—civil
Business—civil:

Department of Commerce:
Bureau of Public Roads
Other
Federal Deposit Insurance Corporation
Other
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 Commerce: Highway trust fund
Department of Health, Education, and Welfare:
Federal old-age and survivors insurance: Operating expenses.
Federal disability insurance: Operating expenses
Federal supplementary medical insurance: Operating expenses
Federal hosoital insurance: Operating expenses
Department of the Interior:
Indian tribal funds
_ __
Other
*Less than one-half million dollars.




68
300
1,392

285
1,782

53
74
3

274
1,715

133
87

70
3

59
3

424

THE BUDGET FOR FISCAL YEAR 1967

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965
actual

1966
estimate

1967
estimate

Trust Funds—Continued
CURRENT EXPENSES FOR AIDS AND SPECIAL
SERVICES—Continued
Other aids and special services—civil—Continued
Other agencies

11

12

11

Total, other aids and special services

1,780

2,127

2,429

Total, current expenses for aids and special services

3,438

3,843

4~365

15,226
82

18.125
193

19,064
117
765
2,338

15,308

18.318

22,284

Unemployment benefits—civil: Department of Labor: Unemployment trust fund

2,505

2.284

2,305

Other retirement and social insurance benefits—civil:
Civil Service Commission: Civil Service retirement and
disability
__
Railroad Retirement Board: Railroad retirement account
Other agencies

1,308
1,116
8

1,486
1,176
10

1,658
1,195
11

Total, other retirement and social insurance benefits

2,433

2,672

2,864

20,246

23,274

27,452

2

3

3

27
4

28
4

28
5

31

32

33

-179

4

38

*
3

19
5

47
6

-176

29

91

*

*

*

RETIREMENT AND SOCIAL INSURANCE BENEFITS
Insurance benefits—civil:
Department of Health. Education, and Welfare:
Federal old-age and survivors insurance
Federal disability insurance trust fund
Federal supplementary medical insurance
Federal hospital insurance
Total, insurance benefits

Total, retirement and social insurance benefits
OTHER SERVICES AND CURRENT OPERATING
EXPENSES
Repair, maintenance and operation of physical assets, (excluding
special services) —civil
Regulation and control—civil:
Department of Agriculture: Inspection, grading, and other
Other agencies
Total, regulation and control
Other operation and administration:
Civil:
International activities:
Department of Justice:
Alien property fund: World War II
Uther
Foreign Claims Settlement Commission: War claims fundOther agencies
__
Total, international activities
Federal financial activities
"Less than one-half million dollars.




i

425

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1965

1966

1967

Trust Funds—Continued
OTHER SERVICES AND CURRENT OPERATING
EXPENSES—Continued
Other operation and administration—Continued

Civil—Continued
Other direct Federal programs:
Civil Service Commission:
Civil service retirement and disability fund: RefundsHealth benefits and life insurance
Other agencies

130
-36
2

129
-6
2

133
-58
2

96

125

78

17

19

19

-63

173

188

6

6

6

Total, other operation and administration

-57

179

194

Total, other services and current operating expenses

-24

214

230

436
24
10
58
184
384

446
30
150
52
104
446

521
40
25
68
85
489

4 2

-75
5
-166

-36
14

Total, other direct Federal programs

_-

Shared revenues and grants-in-aid
Total, other operation and administration, civil
National defense: Other agencies

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 market
operations
Advances from District of Columbia
Deposit funds

-210

Total, unclassified
Interfund transactions

928

992

-638

-795

1,158
-767

29,637

33,786

37,882

_

Total, trust funds
"Less than one-half million dollars.




*

-48

PRIVATE PARTICIPATION IN FEDERAL CREDIT PROGRAMS

(For additional details, see Special Analysis E in separate volume, Special Analyses
of the United States Budget, 1967.)

Despite the number and variety of major Federal credit programs,
they directly affect only a small fraction of the total volume of credit,
both public and private. Of the estimated private debt of $853 billion outstanding on June 30, 1965, direct Government loans and
guarantees of private loans to domestic private borrowers accounted
for about 11%. Federal guarantees or insurance of private loans
were responsible for most of the Federal assistance.
In recent years, and especially during the past year, emphasis has
been placed upon obtaining private participation in public credit programs wherever consistent with achievement of the purposes of such
programs. Numerous methods are being employed to make this
policy effective, including: (a) limitation of direct lending to cases
where borrowers cannot otherwise obtain the funds on reasonable
terms; (b) liberalization in lending authority of private institutions;
(c) expanded use of Government guarantees and insurance of private
loans as an alternative to direct loans; and (d) increased sales of
Government loans to private lenders.
DIRECT SALES AND PARTICIPATION SALES OF LOANS BY
FEDERAL CREDIT PROGRAMS
(in millions of dollars)
1965 actual
Agency or program

Direct

Particisales

Department of Agriculture: Farmers
Home Administration.
Department of Health, Education, and
Welfare: Office of Education
Department of Housing and Urban Development:
Federal National Mortgage Association..
Federal Housing Administration
Public housing program
College housing loans
Public facility loans
Veterans Administration:
Direct loan revolving fund
__.
Loan guarantee revolving fund
Export-Import Bank of Washington
Small Business Administration
Total, by type of sale _
Grand total
Present programs —
Proposed legislation.
1
2

35




Direct
sales

Participation
sales

40

1967 estimate
Direct
sales

Participation
sales

1
5
M O
O

264
6
4
12
11

200

61
266
124
31

93
7
450

1,564

182
15

485

49
65

5
5

814
750
1.564

Under proposed legislation.
Includes $400 million under proposed legislation.

426

1966 estimate

60
260
60
45

520

1820
180
625
200
975
l
350

672
2,635
3,307
2,957
350

2

290
25

154
106
975
1850

534
4,205
4,739
1,889
2,850

SPECIAL ANALYSES

427

Legislation is being proposed to authorize a Government-wide program for the sale of participations in outstanding direct loans. Under
the expanded program, the Federal National Mortgage Association,
as trustee, will continue to administer the pools of loans set aside by
the Veterans Administration and by its own special assistance and
management and liquidating programs. It will also administer and
sell certificates of participation in pools of loans set aside by the
Farmers Home Administration, the Office of Education, the Small
Business Administration, and the college housing and public facility
loan programs of the Department of Housing and Urban Development.
The program authorized by this legislation will use many of the
techniques successfully employed in earlier sales of participations by
the Export-Import Bank and the Federal National Mortgage Association. In addition, new provisions will make it possible for the first
time to include in the pools many loans which bear interest rates below
current market levels. The agencies pooling such loans will be authorized to make supplementary payments to the trustee, which,
together with the interest on the loans in the pools, will assure a level
of return adequate to attract private investment.
Largely as a result of this proposed legislation, sales of financial
assets are expected to increase from the $1.6 billion actually consummated in 1965 to $3.3 billion in 1966 and $4.7 billion in 1967. These
figures exclude sales made as part of the usual process of guaranteeing
or insuring loans, and sales from one Government agency to another,
as well as regular amortization and prepayments of principal.
Of the total sales anticipated in 1967, $4,205 million will be accomplished through sales of participations and $534 million from direct
sales of individual loans. The timing of sales and the specific assets
to be sold are subject to variation depending upon market developments and shifts in the inventory of available assets.







PART 7

HISTORICAL TABLES

429

430

T H E BUDGET FOR FISCAL YEAR

1967

Table 15. ADMINISTRATIVE BUDGET TOTALS AND PUBLIC DEBT,
1789-1967 (in millions of dollars)
ADMINISTRATIVE
BUDGET
Fiscal year

Receipts

Expend-

Surplus

<+) ?r
deficit

1789-1849. 1,160 1,090
+70
1850-1899. 13,895 14,932 -1,037

Public
debt at
end of
year l

ADMINISTRATIVE
BUDGET
Fiscal year

Receipts

Expend-

Surplus

(+) or

Public
debt at
end of
year l

deficit

63
1,437

1933.
1934_

1,997 4,598 -2,602
3,015 6,645 -3,630

22,539
27,734

1935.
1936193719381939-

3,706
3,997
4,956
5,588
4,979

-2,791
-4,425
-2,777
-1,177
-3,862

32,824
38,497
41,089
42,018
45,890

1900.
1901.
1902.
1903_
1904.

567
588
562
562
541

521
525
485
517
584

+46
+63
+77
+45
-43

,263
,222
,178
,159
.136

1905.
1906.
1907.
19081909.

544
595
666
602
604

567
570
579
659
694

-23
+25
+87
-57
-89

,132
,143
,147
,178
,148

1940.
194L
1942.
1943.
1944_

5,137
7,096
12,547
21,947
43,563

9,055 -3,918
13,255 -6,159
34,037 -21,490
79,368 -57,420
94,986 -51,423

48,497
55,332
76,991
140,796
202,626

1910_
1911.
1912.
1913.
1914.

676
702
693
714
725

694
691
690
715
725

-18

+11
+3*
•
*

,147
,154
,194
,193
,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 -1,811

259,115
269,898
258,376
252,366
252,798

1915.
1916.
1917.
1918.
1919.

746
683
-63
,191
713
762
+48
,225
1,100 1,954 -853 2,976
3,630 12,662 -9,032 12,455
5,085 18,448 -13,363 25,485

1950_
1951.
1952.
19531954.

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 6,357
5,567 5,058
4,021 3,285
3,849 3,137
3,853 2,890

1925.
1926.
1927.
1928.
1929.
1930.
193L
1932.

6,497
8,422
7,733
6,765
8,841

+291
+509
+736
+713
+963

24,299
23,977
22,963
22,350
21,251

195519561957.
1958.
1959.

60,209
67,850
70,562
68,550
67,915

64,389 -4,180
66,224 +1,626
68,966 +1,596
71,369 -2.819
80,342 -12,427

274,418
272,825
270,634
276,444
284,817

3,598
3,753
3,992
3,872
3,861

+717
2,881
2,888
+865
2,837 +1,155
2,933
+939
3,127
+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

4,058
3,116
1,924

3,320
+738
3,577
-462
4,659 -2,735

16,185
16,801
19,487

1965—
93,072 96,507 -3,435 317,864
1966 est-. 100,000 106,428 -6,428 320,000
1967 est— 111,000 112,847 -1,847 321,680

Note.—A classification of administrative budget receipts and expenditures for the period 1955 to
1966, inclusive, is found in table 18 (p. 435) and table 19 (p. 436), 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
jfn 1913; comparable data are not available for prior years.
"Less than $500 thousand.
1
Includes Government enterprise debt guaranteed by the U.S. Treasury.




431

HISTORICAL TABLES

Table 16. CONSOLIDATED CASH TOTALS AND FEDERAL SECTOR OF
THE NATIONAL INCOME ACCOUNTS, 1940-67 (in billions of dollars)
Consolidated cash statement

Federal sector of the national
income accounts

Fiscal year
Receipts

Payments

Surplus

(+) or
deficit

1940
1941
1942
1943
1944

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

1945
1946
1947
1948
1949

50.2
43.5
43.5
45.4
41.6

95.2
61.7
36.9
36.5
40.6

-45.0

1950
1951
1952
1953
1954

40.9
53.4
68.0
71.5
71,6

1955
1956
1957
1958___
1959

Receipts

7.6
12.1

Expenditures

Surplus

( + ) or
deficit

19.6
28.9
43.1

9.1
13.4
33.6
76.8
91.3

-1.5
-1.3
-14.0

98.2
55.5
29.5
30.9
39.6

-55.2
-17.1
+13.2
+12.7

+1.0

43.0
38.4
42.7
43.6
40.0

43.1
45.8
68.0
76.8
71.9

-2.2
+7.6
*
-5.3
-.2

42.0
60.8
65.1
69.3
65.8

42.4
44.6
66.0
75.8
74.2

67.8
77.1
82.1
81.9
81.7

70.5
72.5
80.0
83.5
94.8

-2.7
+4.5
+2.1
-1.6
-13.1

67.2
75.8
80.7
77.9
85.4

67.3
69.8
76.0
83.1
90.9

i960
1961
1962
1963
1964

95.1
97.2
101.9
109.7
115.5

94.3
99.5
107.7
113.8
120.3

+.8

94.8
95.3
104.2
110.2
115.1

91.3
98.0
106.4
111.4
117.1

+3.5

-2.3
-5.8
-4.0
-4.8

1965

119.7
128.2
145.5

122.4
135.0
145.0

119.6
128.8
142.2

118.3
131.0
142.7

+1.2
-2.2

1966 (estimate)
1967 (estimate)

-46.1

-18.2

+6.6

+8.9

-2.7
-6.9

+.5

-47.9
-48.1

+ .4
-.5

+16.2
-1.0

-6.5
-8.5
-.1

+6.0
+4.7
-5.1
-5.5
-2.7
-2.1
-1.2
-1.9

-.5

Note.—For an explanation of the consolidated cash statement and Federal sector of the national
income accounts, see special analysis A (pages 378 to 386). Classifications of receipts and expenditures on both the consolidated cash and national income bases, for fiscal years 1956—67, are shown
in table 20 (page 441), and table 21 (page 442), respectively.
* Less than $50 million.




432

THE BUDGET FOR FISCAL YEAR 1967

Table \7. FEDERAL FINANCES AND THE GROSS NATIONAL PRODUCT,
1940-66 (in billions of dollars)

Fiscal year

Gross
national
product

Federal purPublic debt
Administrative Cash payments
budget expend- to the public chases of goods at end of year 1
itures
and services
PerPerPerPerAmount cent of Amount cent of Amount cent of Amount cent of
GNP
GNP
GNP
GNP

1940
1941
1942
1943
1944

95.0
109.4
139.2
177.5
201.9

9.1 9.5
13.3 12.1
34.0 24.4
79.4 44.7
95.0 47.1

9.6 10.1
14.0 12.8
34.5 24.8
78.9 44.5
94.0 46.6

5.3 5.5
9.6 8.8
29.9 21.5
72.3 40.8
85.6 42.4

140.8
202.6

51.1
50.6
55.3
79.3
100.4

1945__
1946
1947
1948
1949

216.8
201.6
219.8
243.5
260.0

98.3 45.3
60.3 29.9
38.9 17.7
33.0 13.5
39.5 15.2

95.2 43.9
61.7 30.6
36.9 16.8
36.5 15.0
40.6 15.6

89.7
40.1
13.0
13.2
19.3

41.4
19.9
5.9
5.4
7.4

259.1
269.9
258.4
252.4
252.8

119.5
133.9
117.5
103.6
97.2

1950
1951
1952
1953
1954

263.3
310.5
337.2
358.9
362.1

39.5 15.0
44.0 14.2
65.3 19.4
74.1 20.7
67.5 18.7

43.1 16.4
45.8 14.7
68.0 20.2
76.8 21.4
71.9 19.8

19.0
25.1
46.6
56.1
53.2

7.2
8.1
13.8
15.6
14.7

257.4
255.3
259.2
266.1
271.3

97.7
82.2
76.8
74.1
74.9

1955.
1956
1957
1958
1959

378.6
409.4
431.3
440.3
469.1

64.4
66.2
69.0
71.4
80.3

17.0
16.2
16.0
16.2
17.1

70.5 18.6
72.5 17.7
80.0 18.5
83.5 19.0
94.8 20.2

43.9
45.2
47.7
50.7
54.7

11.6
11.0
11.1
11.5
11.7

274.4
272.8
270.6
276.4
284.8

72.5
66.6
62.7
62.8
60.7

1960
1961
1962
1963
1964

495.2
506.5
542.1
572.4
609.6

76.5
81.5
87.8
92.6
97.7

15.5
16.1
16.2
16.2
16.0

94.3
99.5
107.7
113.8
120.3

19.0
19.7
19.9
19.9
19.7

52.7
55.5
60.9
63.4
65.8

10.6
11.0
11.2
11.1
10.8

286.5
289.2
298.6
306.5
312.5

57.8
57.1
55.1
53.5
51.3

1965

648.7
700.0

96.5
106.4

14.9
15.2

122.4
135.0

18.9
19.3

64.5
70.7

9.9
10.1

317.9
320.0

49.0
45.7

1966 (estimate)

• Includes Government enterprise debt guaranteed by the U.S. Treasury.




48.5
55.3
77.0

Table 18. ADMINISTRATIVE BUDGET AND TRUST FUND RECEIPTS, 1956-67 (in million* of dollars)
Actual

Description

Estimate

1956

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

32,188
20,880

35,620

34,724
20,074
8,612
333

36,719
17,309
8,504

40,715
21,494
9,137
339

45,571
20,523
9,585

47,588
21,579
9,915

48,697
23,493
10,211

48,792
25,461
10,911

51,400
29,700
9,169

56,240
34,400
8,879

4,062

41,338
20,954
9,063
*
1,896
982
4,080

-694

-654

2,016
1,142
3,206
-633

2,167
1,205
4,435
-513

2,394
1,252
4,076
-664

2,716
1,442
4,619
-870

2,932
1,655
5,791
-647

3,301
1,845
7,047
-712

1967

ADMINISTRATIVE BUDGET FUNDS
Individual income taxes. _.
Corporation income taxes.
Excise taxes (net)
Employment taxes
Estate and gift taxes
Customs
Miscellaneous receipts
Interfund transactions

9,929
322
1,161
682
3,003

-315

21,167
9,055
328
1,365

735
2,760
-467

1,393
782
3,200
-567

321
1,333

925
3,160
-355

1,606

1,105

w
§
I—I

Total administrative budget. _

67,850

70,562 68,550 67,915 77,763 77,659 81,409 86,376 89,459 93,072 100,000 111,000

o

TRUST FUNDS
Employment taxes
Unemployment tax deposits by States. _ _
Excise taxes
Federal employee and agency payments for retirement
I nterest on trust funds
Veterans life insurance premiums
Miscellaneous trust receipts
Interfund transactions
Total trust funds.

18,819
2,900
3,859

24,339
2,900
4,378

2,222
1,822
490
4,221
-795

2,244
1,970
490
6,053
-767

16,153 16,769 20,342 23,582 24,290 27,689 30,331 31,047 33,539

41,608

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

813
1,212
441
918
-12

1,175
1,324
452
1,146
-10

1,252

1,350
485
1,317

1,507
1,323
478
1,375
-135

1,504
1,337
482
2,494
-908

1,740
1,414
504
2,840
-515

11,607

14,301

12,561 14,862 16,832 16,905
2,729 3,009 3,042 3,052
2,949 3,279 3,519 3,659
1,756
1,433
501
2,889
-528

1,878
1,477
494
3,195
-505

2,029
1,613
494
3,322
-521

2,173
1,770
488
3,639
-638

Note.— Figures shown in this table are net of refunds, but correspond to the net figures used in the same classifications for fiscal years 1965 to 1967 in table 13 (pages
60 to 66).
"Less than $500 thousand.




00
00

fe
£

Table 19. ADMINISTRATIVE BUDGET AND TRUST EXPENDITURES BY FUNCTION, 1956-67 (in millions of dollars)
Esti inate

Actual

Description
1956

1957

1958

1959

I960

1961

1962

1963

1964

1965

1966

1967

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.

w
w
o
o

d
13,000
11,874
16,632

14,195
11,932
15,351

\4J7\

6,376
1,144
427
203
90
-99 -1,401

7,021
1,026
580
107
-452

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

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

16,600
14,160
13,880

18,150
14,980
15,970

6,236
1,007
619
93
-741

6,370
1,140
650
100

25

6,400
1,120
545
100
-115

52,925
1.275
2,390

57,150
1,150
2.300

12,349
11,839

-598

-323

-643

-179

-416

-300

Total, Department of Defense—Military. 35,792
2,611
057 Military assistance
1,651
058 Atomic energy
669
059 Defense-related activities
__ _ .

38,436
2,352
1,990

39,071
2,187
2,268

41,223
2,340
2,541

41,215
1,609
2,623

43,227
1,449
2,713

46,815
1,390
2,806

48,252
1,721
2,758

49,760
1,485
2,765

46,173
1,229
2,625

590

709

379

244

104

92

24

172

136

-30

43,368

44,234

46,483

45,691

47,494

51,103

52,755

54,181

50,163

56,560

60.541

h-1

-59

40.723

H

Total, national defense
150 International affairs and finance:
151 Conduct of foreign affairs
152 Economic and financial programs
_
153 Foreign information and exchange activities..
154 Food for Peace
Total, international affairs and finance




129

157

173

237

217

216

249

346

297

346

327

328

1,519
111
708

1,559
133
1,463

1,788
149
1,195

3,305
139
1,120

1,381
137
1,327

1,927
158
1,653

2,130
197
1,726

1,826
201
1,779

1,479
207
1,704

2,094
223
1,641

1,675
229
1,701

2,074
237
1,539

2,467

3,311

3,305

4,802

3,064

3,954

4,301

4,151

3,687

4.304

3,932

4,177

CO
OS

250

Space research and technology:

251 Space research and technology:
Manned space flight
Scientific investigations in space
Meteorology and other space applications
Other research, technology, and supporting operations

25

113
125

565
359

1,516
483

2,768
641

3,538
662

3,810
735

3,600
656

\7

1

279
232

61

92

112

89

101

100

109

14
5

217

272

460

650

804

954

944

7
1

7
6

89

15
4

41
0

744

1,257

2,552

4,171

5,093

5,600

5,300

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

3,438
268

3,134
90

2,989
-612

217
285
215

267
353
227

297
289
255

315
341
291

330
324
293

301
347
324

303
367
341

342
324
391

342
324
414

392
341
457

193
374
522

196
348
452

Total agriculture and agricultural resources

4,234

3,186

3,320

5,533

3,606

3,667

4,338

5,311

5,475

4*
,

4,313

3,372

400 Natural resources:
401 Land and water resources
402 Forest resources
403 Mineral resources
404 Fish and wildlife resources
405 Recreational resources
409 General resource surveys and administration.

823
139
38
45
44
36

947
163
62
51
59
38

1,165
174
59
60
69
44

1,219
201
71
68
85
61

1,279
220
65
68
74
51

1,444
331
61
73
91
55

1,623
280
68
81
94
60

1,779
303
71
94
112
73

1,832
332
91
105
130
73

1,922
374
105
120
134
94

1,985
421
114
123
194
84

2,098
409
141
123
204
86

1,125

1,320

1,570

1,705

1,757

2,056

2,206

2,431

2,563

2,750

2,920

3,062

Total, space research and technology _
350 Agriculture and agricultural resources:
351 Farm income stabilization

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, natural resources

W
5

See footnotes at end of table, p. 440,




6
Ox

Table 19. ADMINISTRATIVE BUDGET AND TRUST EXPENDITURES BY FUNCTION, 1956-67 (in millions of dollars)-Continued
Actual
Description
1956

1957

1958

1959

I960

I

Estimate

1961

1962

1963

1964

1965

1966

1967

ADMINISTRATIVE BUDGET FUNDS—Con.
500

Commerce and transportation:

501
502
503
505
506

Aviation
Water transportation
Highways
Postal service
Advancement of business

_

508 Regulation of business
Total, commerce and transportation
550

Aids to private housing
Public housing programs
Urban renewal and community facilities
National Capital region
Total, housing and community development

41

494
436
30
774
234

568
508
38
525
265

716
569
36
914
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

-10

-118

342
479

67

781
654
33
797
427
7
74

808
672
41
770
366
101
84

835
658
39
578
401
401
91

1.963

2,573

2,774

2,843

3,002

732
97
108
33

-172
134
130
30

-44
150
162
51

-149
163
261
74

-537
178
222
70

30

970

122

320

349

461
397

540
488

700
924

815
510

961
809

1,457

1,558

1,797

1,969

2,061

184

216

234

284

2,462

2,632

3,059

3,877

875
71%
39
805
557
398
98

879
749
77
878
301
217
101

913
756
102
755
-150
193
104

H
W
d

3,499

3.202

2.672

58

-595
149
306
59

-818
230
420
64

-719
249
477
71

-836
261
571
127

-67

-80

-104

77

123

1,233
591

1,511
224

1,878
345

1,882
464

2,481
523

3,621
531

2,147

2,331

2,631

2,786

304

327

382

423

466

2,827
211
513

3,288
1,210
875

3,364
1,600
846

3,690

4,244

4,538

4,789

5,475

5,898

8,377

9,962

o
H

CO

Health, labor, and welfare:

651 Health services and research2
_
652 Labor and manpower
653 Public assistance (excluding medical care for
the aged)2
...
655
659

219
365
40
518
119

Housing and community development:

551
552
553
555

650

180
420
783
463
5

Economic oDDortunitv nrocrram
O t h e r welfare s e r v i c e s __.
Total, health, labor, and welfare




700 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
800

11
8
44
20
9
8
33
4

14
7
10
1
46
18
0

19
8
18
7

29
5
25
2

37
2
21
6

32
3
26
8

37
3
30
5

32
9
48
2

44
0
33
8

418
43
1

70
3
72
1

1.546
10
4

50
14
2

16
0
11
4

10
2
16
5

13
4
11
8

13
8
207

26
0
29
1

30
1
21
4

39
0
45
0

35
6
52
1

45
2
73
2

47
3

51
4

72
3

86
6

93
4

1,076

12 4
4

1,339

1,544

2,318

2,834

1.864
84
8
93
4
78
8
31
3
4.810

18 6
7
90
5
97
7
81
0
26
6
480
7

2,024
1,037
1,025
86
5
22
4
5,184

2,071
1,152
84
6
91
2
20
8

2,049
1,265
75
2
91
6
26
6

2,017
1,635
38
8
1,084
29
7
5,403

2,158
1,743
13
1
1,229
29
4
5,492

2,311
2,001
-813
1,342
20
8
5,122

2,307
1,978
-164
1,376
24
2

5,266

1
2 16
1,698
-13
1,145
20
4
5,186

2,176
1,864
-50
1,270
25
3

5,287

2,034
1,532
59
5
1,030
29
5
5,414

6.787
5
4
6

724
4
5
7
6

7,607
74
8

7,593
69
9

9,180
7
6
1
0

8,957
8
3
1
0

9,120
68
1
0

9,895 10,666 11,346 12,000
74
88
7
7
9
1
1
1
1
1
1
2
1
2

12.750
9
1
1
3

6.846

737
0

7,689

7.671

9,266

9,050

9,198

9,980 10.765 11,435 12,104

12.854

7
6
3
8
1
2
45
7
13
7
34
0
20
2
28
7
1.576

90
40
1
2
46
7
21
0
62
0
29
1
10
0

8
9
44
1
9
52
0
25
4
84
23
3
6
9

19
0
4
9
20
58
5
32
7
84
23
6
88

18
1
52
22
67
0
32
7
10
4
29
8
19
0

15
3
57
2
2
63
5
49
1
13
5
30
0
16
3

11
3
63
2
1
75
1
44
4
12
4
33
2
19
3

16
2
66
22
71
9
56
7
14
7
35
3
19
8

12
4
7
6
2
3
85
2
66
0
14
7
36
6
10
9

16
6
84
2
7
82
7
51
8
13
7
37
9
15
7

1
.738

1.284

1,466, 1,542

1,709

1,875

1,979

2,280

2,402

2,476

2.591

-315

-467

-567

-355

-694

-654

-633

-513

-664

-870

7
5
-647

30
5
-712

Veterans benefits and services:

801
802
803
804
805

Veterans service-connected compensation.
Veterans non-service-connected pensions..
Veterans readjustment benefits
Veterans hospitals and medical care
Other veterans benefits and services
Total, veterans benefits and services.

850 Interest:
851 Interest on the public debt
852 Interest on refunds of receipts.
853 Interest on uninvested funds. _.
Total, interest.
900 General government:
901 Legislative functions
902 Judicial functions
903 Executive direction and management
904 Central fiscal operations
905 General property and records management _
906 Central personnel management
908 Protective services and alien control
910 Other general government
Total, general government.
Allowance for contingencies _
Interfund transactions
Total, administrative budget funds.
See footnotes at end of table, p. 440.




5,495

5,721

w
O

12
0
47
2
1
56
6
25
9
9
5
25
5
86

12
6
94
2
8
98
1
64
1
13
7
43
2
19
7

66.224 6
8.966 7
1.369 8
C,342 76,539 81,515 87,787 92,642 97,684 96,507 106,428 112.847

a
f4

O
P

Table 19. ADMINISTRATIVE BUDGET AND TRUST EXPENDITURES BY FUNCTION, 1956-67 (in millions of dollars)-Continued
00

Actual

Description
1956

1957

1958

1959

I960

Esti mate
1962

1961

1963

1964

1965

1966

487
62
*
496
137
3,482
1,889
22,733

751
-160
*
927
134
3,864
1,136
23,186

875
190
*
600
144
3.780
1,988
26,589

1967

TRUST FUNDS
National defense
International affairs and finance.
250 Space research and technology
350 Agriculture and agricultural resources
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
.
Deptisit funds
Interfund transactions
050
ISO

Total, trust funds. _

143
-29

93
13

344
1

229
21

256
48

196
13

366
15

679
44

288
79
-101
461
7,999

426
85
866
1.044
9,585

645
94
2,493
1,263
14,306

1

1

357
101
1,401
-295
12,775

1

1

458
116
2,831
1,439
16,358

416
183
2,505
-273
19,236

398
112
2,662
1,524
20,382

507
122
2,877
-36
21,855

2

2

2

3

606
8
169
-12

608
8
217
-10

671
10
-29
-11

651
10
-60
-135

673
17
-78
-908

811
16
203
-515

733
20
-544
-528

835
19
146
-505

666
18
-567
-521

624
21
-210
-638

554
23
-166
-795

682
24
-48
-767

9,611

12,938

15,325

19,521

21,212

22,793

25,141

26,545

28,885

29,637

33.786

37,882

1

1

1

898
126
*
623
142
3,895
1.194
31 110

4

*Less than $500 thousand.
1
Amounts shown include expenditures under the temporary public works acceleration program, which supplements expenditures in the other functions as follows:
1963
1964
1965
1966 1967
Housing and community development (553)
$13
$176
$190
$70
$7
Community health facilities and waste treatment (651)
1
69
108
48
1
Land, water, mineral, forest, and wildlife resources (400; more than one subfunction)
44
64
19
6
Commerce, highways, and other transportation (500; more than one subfunction)
2
15
4
I
Federal facilities, post offices, and prisons (900; more than one subfunction)
1
6
1
Agriculture and agricultural resources (300; more than one subfunction)
1
1
All other functions
__
1
Total
_
Tl
332
322
Il5
8
2
The^ portion of the appropriation for "Public assistance" which finances medical and hospital care for the aged has been reclassified from subfunction 653 "Public
assistance" to subfunction 651 "Health services and research." Subfunction 653 has been retitled "Public assistance (excluding medical care for the aged)." Historical
figures have been revised to reflect this change.




s

I

Table 20. RECEIPTS FROM AND PAYMENTS TO THE PUBLIC, 1956-67 (in millions of dollars)
Actual

Description
1956

1957

1958

1959

I960

1961

Estimate

1962

1963

1964

1965

47,588
21,579
13,194
14,862
2,167
1,205
3,009
494
5,641

48,697
23,493
13,731
16,832
2,394
1,252
3,042
494
5,596

48,792
25,461
14,570
16,905
2,716
1,442
3,052
488
6,274

1966

1967

51,400

56,240
34,400
13,257

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

32,188

35,620

20,880
9,929
7,228
1,161

21,167
10,534

682
1,330

735

7,520
1,365

34,724 36,719 40,715 41,338 45,571
20,074 17,309 21,494 20,954 20,523
10,638 10,578 11,676 11,860 12,534
8,565 8,767 11,067 12,405 12,561
1,393 1,333 1,606 1,896 2,016
782
982 1,142
925 1,105
1,501 1,701 2,167 2,398 2,729
485
482
504
501
478
3,730 3,851 4,766 4,905 4,288

1,542
452
3,171

77,087

82,105

81,892 81,660 95,078 97,242 101,865 109,739 115,530 119,6)9

40,854
2,239

Total, receipts from the public

441
3,249

43,442
3,975

44,552 46,673 45,915 47,685 51,462 53,429 54,514 50,790
3,724 3,420 2,806 3,608 3,976 3,805 3,492 4,583
744 1,257 2,552 4,171 5,093
89
145
401
3,248 5,995 3,601 3,677 4,399 5,623 5,761 5,353
1,667 1,789 1,866 2,151 2,282 2,535 2,680 2,820
3,060 4,545 4,819 5,107 5,487 5,777 6,545 7,421
908
-319 2,141 1,440 -103 1,691 -268 1,674
15,757 18,017 19,107 22,365 23,975 25,698 27,285 28,292
542
733
867
945 1,052 1,214 1,299 1,497
5,828 5,910 5,907 6,187 6,092 5,971 6,107 6,080
5,884 5,350 7,233 7,257 6,940 7,427 8,011 8,605
1,292 1,475 1,558 1,677 1,837 1,953 2,221 2,341
-29
-78
-60
203 -544 -194 -567 - 2 1 0
-1,823 -1,382 -1,114 -1 960 -2,244 -1,771 -2,862 - 1 , 1 7 9

29,700
13,028
18,819

2,932
1,655

2,900
490
7,229

24,339
3,301
1,845
2,900

490
8,766

128,154 145,539

PAYMENTS TO THE PUBLIC
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
Deposit funds (net)
Undistributed adjustments
Total, payments to the public
Excess of receipts ( + ) or payments (—)

O

71
4,343
1,198
1,796

396
10,254
344

5,328
5,115
1,583

_

169
-1,145

72,546

76

3,267
1,401
2,200
842
12,108
439
5,448
5,266
1,744
2)7
-420

80,006 83,472 94,752 94,328 99,542 107,662 113,751 120,332

+4,542 +2,099 -1,580 -13,092

+750 -2,300 -5,797 -4,012 -4,802

57,421
4,092
5,600
4,598
2,914
7,038
1,982

61,404
4,429
5,300
3,645
3.041
6,620
1,193
39,331
2,774
6,380
10.152

34,115
2,264
5,642
9,304
2,414
2,523
-166
-48
-2,170 -1,696

122,395 135,048 145,048
-2,696 -6,894

+491

Note.—This table shows the flow of money between the Government and the public on a cash (collections and checks paid) basis, which is explained in more
detail in special analysis A, pages 378 to 386.




1

CO

Table 21. FEDERAL RECEIPTS AND EXPENDITURES IN THE NATIONAL INCOME ACCOUNTS, 1956-67
(Fiscal years. In billions of dollars)
Actual

Estimate

Description
1956

1957

1958

1959

I960

1961

1962

1963

1964

1965

1966

1967

RECEIPTS, NATIONAL INCOME BASIS

3

33.6
21.1
10.8
10.2

36.7
20.6
11.7
11.7

36.3
17.8
11.6
12.2

38.2
21.5
11.9
13.8

42.5
22.3
13.2
16.7

43.6
20.3
13.3
18.1

47.3
22.9
14.2
19.9

49.6
23.6
15.0
22.1

50.7
25.3
15.6
23.6

51.2
27.0
16.8
24.6

54.8
29.3
15.9
28.8

60.5
31.1
16.5
34.1

75.8

80.7

77.9

85.4

94.8

95.3

104.2

110.2

115.1

119.6

128.8

Purchases of goods and services
Transfer Davments
Grants-in-aid to State and local governments
Net interest paid
--~
Subsidies less current surplus of Government enterprises

45.2
14.7
3.2
5.1

47.7
16.3
3.7
5.5

50.7
19.5
4.7
5.7

54.7
21.6
6.2
5.9

52.7
22.4
6.8
7.0

55.5
25.6
6.9
6.8

60.9
27.2
7.6
6.8

63.4
28.6
8.4
7.5

65.8
29.6
9.8
8.1

64.5
30.3
10.9
8.6

70.7
34.2
12.8
9.0

74.4
39.2
14.7
9.7

1.7

2.8

2.5

2.4

2.3

3.2

3.8

3.6

3.8

4.1

4.3

4.7

Total expenditures, national income basis

69.8

76.0

83.1

90.9

91.3

98.0

106.4

111.4

117.1

118.3

131.0

142.7

+6.0

+4.7

-5.1

-5.5

+3.5

-2.7

-2.1

-1.2

-1.9

+1.2

-2.2

-.5

w

142.2

Personal tax andf nontax
Coroorate Drofits 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 b a s i s . .

Source.—Actual data for 1956-65 are based on the quarterly estimates prepared by the Department of Commerce,
he
by the Bureau of the Budget in cooperation with the Department of Commerce.




d

o
O
W

Data for 1966 and 1967 are based on estimates

I

INDEX
Accounts, Bureau of, 309-310
Administrative budget:
Discussion, 10-11
Expenditures:
By agency, for each appropriation and
fund account, analysis, 166-351
By agency, summary, table 5, 43
By function:
1956-67, table 19, 434-438
Distributed by agency, table 14, 145-154
Summary, table 1, 39
Comparison of Great Society programs,
1964-67, text table, 18
Detail for particular programs, see under
program titles
Investment, operating and other, summary, table 6, 44
Payments to the public, by program,
table, 1965-67, 19
Relation of, to obligational authority,
summary, table 8, 46
Totals, fiscal years 1789-1967. table 15,430
Explanation of, 378
Grand totals, 351
New obligational authority, by type and
function, summary, table 3, 41
New obligational authority, by agency, summary, table 4, 42
Obligational authority, balances of, by
agency, summary, table 10, 49
Obligations incurred', net, by agency, table 9,
48
Payments to the public, see Payments to the
public.
Receipts:
By source:
1956-67, table \St 433
1965-67, detailed list, table 13, 60-64
Summary, table I, 39
Estimated effect of proposed legislation on,
text table, 59
From the public, by source, 1965-67, table,
13, 55
Totals summary, fiscal years 1789-1967,
table 15, 430
Relation of, to consolidated cash statement,

381

Relation of, to consolidated cash statement
and national income accounts, 1965-67,
table A-1, 377
Summary, table 1, 39
Totals and public debt, fiscal years 1789-1967,
table 15. 430
Administrative Conference of the United States,
327

200-000 O—66




28

Adult education, basic, 125
Advisory Commission on Intergovernmental
Relations, 337
Aeronautics and Space Administration, see
National Aeronautics and Space Administration
Aeronautics research and technology, 91-93
Aged, health insurance for, discussion, 23
Aged, programs for, 118-120, 127, 128
Agency for International Development, 86-89
Agricultural assistance to developing countries,

21

Agricultural Library, National, 206
Agricultural Marketing Service, 196-J97
Agricultural research, 97-98
Agricultural Research Service, 192-193
Agricultural Stabilization and Conservation
Service, 198-199
Agriculture and agricultural resources:
Analysis, 9S-98
Discussion, 23
NOA and expenditures, 1965-67, distributed
by agency, table 14, 146-147, 155-156
Agriculture, Department of, 192-209
Aid, foreign, see Foreign assistance
Air pollution, 122
Air transportation, 109-110
Aircraft, supersonic, 110
Airlift, defense, 76, 79
Alaska:
Federal Development Planning Committees
for, 333
Federal Reconstruction and Development
Planning Commission, 334-335
Transitional grants to, 186
Alaska Railroad, 277
Alaska Temporary Claims Commission, 327
Alliance for Progress, 22, 88
American Battle Monuments Commission, 328
American Printing House for the Blind, 261
Annexed budgets:
Expenditures and applicable receipts, table
B-7, 392
Explanation of, 165
Memorandum, 372-373
Appalachian Regional Commission, 337
Appalachian regional development, 24, 108, 211
Appalachian Trail, proposed extension, 103
Appeals courts, 180-181
Apprenticeship and Training, Bureau of, 295
Architect of the Capitol, 172-175
Area development, 107-108
Area Redevelopment Administration (Commerce), 212
Armed Forces, see Military personnel
Arms Control and Disarmament Agency, U.S.,
347
441

442

T H E BUDGET FOR FISCAL YEAR

Army, Department of the—Civil, 240-242
Arts, John F. Kennedy Center for the Performing, 346
Arts, National Council on, 341
Arts and Humanities, National Foundation on
the, 341
Asian Development Bank, 89
Atlantic-Pacific Interoceanic Canal Study Commission, 328
Atomic energy activities, 83-84
Atomic Energy Commission, 316
Authorizations, contract, explanaton, 162-163
Authorizations, permanent, see Permanent
authorizations
Automatic data processing activities, 33, 104—
106, 141
Aviation, user charges for, discussion, 15, 5758,59
B
Balance of payments, discussion, 71-72
Balances:
Budget, explanation, 164
Obligational authority, by agency and type,
table 10, 49
Public enterprise funds, table B-3, 389
Trust fund. 1964-67, table B-6, 391
Battle of Lake Erie Sesquicentennial Celebration Commission, 336
Battle of New Orleans Sesquicentennial Celebration Commission, 336
Beautification, highway, 58, 111
Bonneville Power Administration, 287
Borrowing by Government enterprise funds,
table B-10, 395
Botanic Garden, 175
Budget:
Bureau of the, 182-183
Changes in priorities, 1964-67, text table, 18
Message of the President, 7-36
R6sume of, table 1,39
Summary of, 10-^-13
Terms, explanation of, 162-164
Three types of accounts, explanation of,
376-384
Business, advancement of, 104-108
Business, small, see Small business
Business and Defense Services Administration,
214
Business Economics, Office of, 213

Cemeterial expenses, Army, 240
Census, Bureau of the, 213-214
Census, 1970 Decennial, 107
Center for Computer Sciences and Technology,

106
Central Intelligence Agency, 328
Child health, 120
Children, disadvantaged:
Education of, 29
Medical care, 27-120
Nutritional programs, 28
City demonstration projects, 26
Civil Aeronautics Board, 328-329
Civil defense, 237




1967

Civil rights, 143-144
Civil Rights, Commission on, 331
Civil Service Commission, 329-330
Civil supersonic aircraft program, 110
Civil War Centennial Commission, 336
Claims, Court of 180
Coal Research, Office of, 279
Coast and Geodetic Survey, 219
Coast Guard, U.S., 110
College housing, 29
College students, financial assistance for, 29
Commerce, Department of, 210-226
Commerce, stimulation of, discussion, 24
Commerce and transportation:
NOA and expenditures, 1965-67, distributed
by agency, table 14, 148-149, 156
Program analysis, 104-112
Commercial Fisheries, Bureau of, 280-281
Commodity Credit Corporation, 199-201
Commodity Exchange Authority, 197
Communications activities, General Services
Administration, 321
Community action programs, discussion, 124—
Community development, 112-114, 205
Community health, 121. 205, 249-251
Community Relations Service, 215
Compensation:
Federal personnel, table C-3, 402
President of the United States, 182
Vice President of the United States, 166
Computer Sciences and Technology, Center for,
106
Conservation, wildlife, military reservations,
243
Conservation, see also Land; Water
Consolidated cash statement:
Discussion, 12
Explanation of, 378
Intragovernmental transactions excluded
from, 1965-67, table A-3, 382
Payments to the public, table 2, 40
Receipts from the public, table 2, 40
Relation of, to the administrative budget, 381
Relation of, to administrative budget and
national income accounts, 1965-67, table
A-1, 377
Relation of, to Federal sector account,
383-384
Summary, table 1, 39
Totals, 1940-67, table 16, 431
Construction, military, 235-236
Consumer and Marketing Service, 196-197
Consumer protection, 122
Continental air and missile defense forces, 76,
77-78
Contingencies allowance, 19
Contract authorizations, explanation, 162-163
Cooperative State Research Service, 193
Corps of Engineers, 240-241
Corregidor-Bataan Memorial Commission, 336
Cost reduction in Government, discussion,
33-34
Council of Economic Advisers, 183
Courts, 179-181

443

INDEX
Credit programs, Federal, private participation
in, 33, 71, 426-427
Crime in the District of Columbia, President's
Commission on, 342
Crime and law enforcement, discussion, 30
Customs, Bureau of, 310
Customs Court, 180
Customs and Patent Appeals, Court of, 179

Educational exchange, 306-307
Elderly, housing for, 26
Electric power programs, 101
Emergency fund for the President, 186
Emergency Planning, Office of, 184
Employees' Compensation, Bureau of, 298-299
Employment, Federal civilian:
Analysis, 397-405
By agency, summary, table 12, 51
By geographical location, as of June 1965,

Debt issuances, by Government enterprises,
table B-10, 395
Debt issuances, in lieu of checks, table A-4, 383
Decennial Census, 1970, 107
Defense:

Compensation and benefits, table C-3, 402.
In relation to population and other Government employment, 1943-67, table C-4, 405
Summary, full-time permanent, as of June
1965-67, table C-l, 398
Engraving and Printing, Bureau of, 310
Environmental health, 122,251-252
Environmental science services, 106
Environmental Science Services Administration,
218
Equal Employment Opportunity Commission,

table C-2, 401.

Civil, 237

Department of—Civil, 240-243
Department of—Military, 227-239
National:
Discussion, 20-21, 72-84
NOA and expenditures, 1965-67, distributed by agency, table 14, 145, 154-155
Program analysis, 72-^82
Defense materials activities, General Services
Administration, 321
Defense production, expansion of, 186
Deficit, administrative budget, discussion, 9
Deficit or surplus, see Surplus or deficit
Definition of budget terms, 162-163
Delaware River Basin Commission, 338
Disarmament, see U.S. Arms Control and
Disarmament Agency
Disaster relief, 186
District of Columbia, 26, 349-351
District of Columbia, see also National Capital
District courts, 180-181
Drugs, use and control of, see Food and drug
control

E

331

Equal rights, discussion, 30
Excise tax proposals, estimated effect of, on
receipts, text and table, 57, 59
Excise taxes, changes in, 14
Executive Mansion, 182
Executive Office of the President, 182-185
Expenditures:
Administrative budget, see Administrative
budget

Annexed budgets, table B-7, 392
By agency, for each appropriation and fund
account, analysis, 166-373
By agency, summary, table 5, 43
By function, distributed by agency, table 14,
145-159

By function, summary, table 1, 39
Effect of, on balance of payments, discussion,
71-72

Economic Advisers, council of, 183
Economic assistance, foreign, see Foreign
assistance
Economic assumptions as base for revenue estimates, 1964-66, 54-55
Economic development, Commerce, 211-216
Economic growth and stability, discussion, 8-9.
Economic Opportunity, Office of, 27, 124-126,
191
Economic Research Service, Agriculture, 195
Economy, national: Effect of expenditures on,
discussion, 70
Education:
Adult, basic, 125
Discussion and text table, 29
Elementary and secondary, assistance for,
129-131
Higher, assistance for, 131-132
NOA and expenditures, 1965-67, distributed
by agency, table 14, 151-158
Office of, 244-248
Program analysis, 129-134
Science, assistance for, 132-133
Veterans readjustment programs, 30
Vocational, discussion, 133




Effect of, on the economy, discussion, 70
Explanation, 163-164
Gross:
Analysis of, 385-396
Government-administered funds, table B-9,
394
Public enterprise funds, by agency, table
B-1,386
Trust revolving funds, table B-5, 391
In relation to Government programs, discussion, 17-30
Investment, operating, and other, analysis,
404-425
Investment, operating, and other, summary,
table 6, table D-1, 44, 407
National income accounts:
Explanations, text and table A-2, 379-381
Federal sector, discussion, 11, 431, 440
Summary, table 7, 45
Relation of, in administrative budget, consolidated cash statement, and Federal
sector of national income accounts, 196567, table A-1, 377
Relations of authorizations to, table 8, 46-47
Summary, by agency, table 5, 43

444

THE

BUDGET

FOR

Expenditures—Continued
Summary, by functions, table 1, 39
Trust funds, see Trust funds
See also under particular programs
Export expansion program, 89
Export-Import Bank, 89, 331
Export programs, special, 201-202
Extension Service, 193

Family housing (Defense—Military), 237.
Farm Credit Administration, 332
Farm financing, 97
Farm income stabilization, 95-96
Farm programs, discussion 23
Farmer Cooperative Service 194
Farmers Home Administration, 204-205
Federal activities, analysis by function, 68-144
Federal-aid highways, see Highways
Federal Aviation Agency, 316-317
Federal Bureau of Investigation, 292
Federal Coal Mine Safety Board of Review, 332
Federal Communications Commission, 333
Federal Crop Insurance Corporation, 203
Federal Development Planning Committee for
Alaska, 333
Federal finances and gross national product,
1940-66, table 17, 432
Federal financial transactions, three measures
of, 376-384
Federal Home Loan Bank Board, 333
Federal Housing Administration, 270
Federal Maritime Commission, 333
Federal Mediation and Conciliation Service, 334
Federal National Mortgage Association, 269
Federal Power Commission, 334
Federal Prison System, 293-294
Federal Radiation Council, 185, 334
Federal Reconstruction and Development
Planning Commission for Alaska, 334-335
Federal revenues, discussion, 13-15
Federal sector accounts, see National income
accounts, Federal sector
Federal Supply Service, 319
Federal Trade Commission, 335
Federal Water Pollution Control Administration, 257
Field establishments, Federal, management
improvement in, 35
Fine Arts, Commission of, 330
Fiscal operations, central, 141
Fiscal program, 9-10
Fish and wildlife resources, 103
Fish and Wildlife Service, 279-283
Food and Drug Administration, 244
Food and drug control, 122
Food and Fiber, National Advisory Commission
on, 23, 207
Food for Peace, 21. 90
Foreign affairs, conduct of, 86, 303-304
Foreign Agricultural Service, 197
Foreign assistance programs, 21-22, 86-89, 188,
201-202
Foreign Claims Settlement Commission, 335
Foreign currency, special programs, funds appropriated to the President, 192




FISCAL Y E A R

1967

Foreign information and exchange activities,
90-91
Forest resources, 102
Forest Service, 207-209
Former Presidents, see President, the U.S.
Franklin D. Roosevelt Memorial Commission,
336
Freedmen's Hospital, 262
Funds, types of, explanation, 162
Funds appropriated to the President, 186-192

Gallaudet College, 262
Gas, Office of Oil and, 271
General Accounting Office, 335
General fund, explanation, 162
General government:
NOA and expenditures, 1965-67, distributed by agency, table 14, 152-154, 158
Programs, analysis, 141-144
General Services Administration, 318-323
Geological Survey, 277
Government-administered funds, gross expenditures of, table B-9, 394
Government-administered funds, purchases of,
in U.S. securities, table B-11,396
Government enterprises, borrowing by, table
B-10, 395
Government organization, discussion, 32
Government Printing Office, 177-178
Government programs, changes in priorities,
text and table, 17-18
Grants to foreign countries, for development, 82
Great Society, discussion, 9, 17-19, 68
Great Society programs vs. Southeast Asia commitments, discussion, 7-8, 35
Gross national product and Federal finances,
1940-66, table 17, 432
H
Handicapped persons, rehabilitation of, 28
Health and welfare programs:
Analysis, 118-122
Discussion, 26-27
NOA and expenditures, 1965-67, distributed
by agency, table 14, 150-151,157
Health, Education, and Welfare, Department of,
244-264
Health facilities, 26-27
Health professions manpower, 121
High-speed ground transportation, 25
Highway safety, 25
Highway user charges, 15
Highways, 58, 111
Historical and memorial commissions, 336-337
Hospitals:
Freedmen's, 262
Saint Elizabeths, 257-258
Veterans, 137-139
House of Representatives, 168-171
Housing:
Discussion, 25
Military, family housing, 237
NOA and expenditures, 1965-67, distributed
by agency, table 14, 149-150, 157

445

INDEX
Housing—Continued
Program analysis, 112-118
Private, aids to, 115-117
Public, 114-115

Rural, 97
Housing and Urban Development, Department
of, 265-271
Howard University, 262-263
Human resources, investment in, 70-71
Humanities, National Foundation on the Arts
and, 341
Hurricane disaster, Southeast, 191
I
Immigration and Naturalization Service, 293
Income tax proposals, estimated effect of, on
receipts, text and table, 56-57, 59
Indian Affairs, Bureau of, 273-275
Indian Claims Commission, 337
Indians, 101
Information Agency, United States, 348
Inland waterways, user charges for, 15, 58, 59
Inspection activities, proposed user charges on,
58, 98
Insurance, veterans' life, 139
Inter-American Development Bank, 88
Interest:
Analysis of payments, 140
NOA and expenditures, 1965-67, distributed
by agency, table 14, 152
Public debt, 315
Intergovernmental coordination, discussion, 32,
144

Intergovernmental Relations, Advisory Commission on, 337
Interior, Department of the, 272-291
Internal Revenue Service, 313
International activities (Commerce), 215
International affairs:
Discussion, 21-22
NOA and expenditures, 1965-67, distributed
by agency, table 14, 145-146, 155
Program analysis, 84-91
International Boundary and Water Commission, 305
International commissions, 305-306
International Development, Agency for, see
Agency for International Development
International financial institutions, 187
International Hydrological Decade, 100, 103104

International Labor Affairs, Bureau of, 299
International organizations and conferences,
304-305
International Rules of Judicial Procedure,
Commission on, 331
Interoceanic canal feasibility study, 111
Interstate Commerce Commission, 339
Interstate Commission on the Potomac River
Basin, 338
Interstate Highway System, 111
Intragovernmental funds, explanation, 162
Intragovernmental funds, reimbursement from
non-Federal sources, table B-8, 393
Intragovernmental transactions excluded from
consolidated cash statement, table A~3, 382




Investment, operating, and other expenditures:
Analysis, 404-425
By kind, agency, and program, table D-2,
410-425
Summary, tables 6, D-1, 44, 407

J
James Madison Memorial Commission, 336
Job Corps, 125
Judicial Procedure, International Rules of,
Commission on, 331
Judiciary, the, 181-183
Justice, Department of, 291-294

Kennedy, Mrs. Jacqueline Bouvier, office of, 322
Kennedy, John F., Center for the Performing
Arts, 346

Labor, Department of, 295-301
Labor Affairs, International, Bureau of, 299
Labor Management, Bureau of, 272-273
Labor-Management Policy, President's Advisory Committee on, 342
Labor-management relations, 297
Labor-Management Reports, Bureau of, 297
Labor-Management Services Administration,
297
Labor and manpower:
NOA and expenditures, 1965-67, distributed
by agency, table 14, 150
Program analysis, 122-124
Program discussion, 27
Labor Standards, Bureau of, 298
Labor Statistics, Bureau of, 299
Land resources, 96-97, 101-102
Law enforcement, improvement in, proposed, 30
Law Enforcement, President's Commission on,
342
Legislation, proposed:
Employment and unemployment taxes, 57
Estimated effect of, on receipts from the
public, text and table, 56-59
Excise taxes, 57
Income tax, 56-57
Military personnel, medical care for dependents, 81-82
Revolving funds for Rural Electrification Administration and power administrations,
58
User charges, 57, 98
Legislative branch, 166-178
Lewis and Clark Trail Commission, 336
Library of Congress, 176-177
Loans, foreign development, 88
Low-income housing, 26

M
Management improvement, discussion, 32-35
Management improvement, expenses of, 186
Manned space flight, 91-92
Manpower Administration (Labor), 295-297

446

THE BUDGET FOR FISCAL YEAR

Manpower training, discussion, 27
Maritime Administration, 222-223
Maritime Commission, Federal, 333
Mass transportation, urban, 114
Mass transportation, urban, discussion, 25
Maternal health, 120
Medical facilities, see Health facilities
Medical manpower proposed increase in development of, 26-27
Medical professions manpower, 121
Medical programs, see Health programs
Medical services, Public Health Service, 252-253
Mental health, 27, 121
Merchant Marine, U!S., 110
Message, budget, 7-36
Meteorology, 93
Military assistance, 82, 187
Military personnel, 227-229
Military personnel, Active Forces, strength and
composition table, 76
Mineral resources, 103, 277-279
Minerals Exploration, Office of, 279
Mines, Bureau of, 278-279
Mint, Bureau of, 311

N
Narcotics, Bureau of, 311
National Advisory Commission on Food and
Fiber, 23, 207
National Aeronautics and Space Administration, 323
National Aeronautics and Space Council, 183
National Agricultural Library, 206
National Archives and Records Service, 320
National Bureau of Standards, 220-221
National Capital Housing Authority, 339
National Capital Planning Commission, 339
National Capital region, 117-118
National Capital Transportation Agency, 340
National Commission on Food Marketing, 340
National Commission on Technology, Automation, and Economic Progress, 340
National Council on the Arts, 341
National defense, see Defense
National Foundation on the Arts and Humanities, 341
National income accounts, Federal sector:
1940-67, table 16, 431
Expenditures, text table, 11
Explanation of, 378
Receipts, text table, 11
Receipts and expenditures:
1956-67, table 21, 440
1965-67, table A-2, 379
Summary, table 7, 45
Relation of, to administrative budget and
consolidated cash statement, 1965-67,
table A-1, 377
Relation to the consolidated cash statement,
383-384
National Institutes of Health, 120-121,253-256
National Labor Relations Board, 341
National Mediation Board, 341
National Park Service, 283-285
National Science Foundation, 341




1967

National Security Council, 183
National Technical Institute for the Deaf, 261
Natural resources:
Discussion, 23
Land and water, agricultural, 96-97
NOA and expenditures, 1965-67, distributed
by agency, table 14, 147-148, 156
Program analysis, 98-104
Neighborhood Youth Corps, 124
New obligational authority:
Agricultural programs, text table, 94
By agency, for each appropriation and fund
account, 166-373
By agency, summary, table 4, 42
By function, distributed by agency, table 14,
145-159
By type and function, summary, table 3,41
Completeness of estimates for 1965 and 1967,
164-165
Contingencies allowance, 15-17
Discussion, text table, 15-17
Explanation, 162-163
Public enterprise funds, by agency, table B-2,
388
Relation of expenditures to, 46-47
Nuclear energy resources, 24,83-84
Nuclear weapons, 83

Obligational authority, balances of, by agency
and type, table 10, 49
Obligational authority, new, see New obligational authority
Obligations:
Incurred, explanation, 163
Incurred, net, by agency, table 9, 48
Oil and Gas, Office of, 271
Outdoor Recreation, Bureau of, 102-103, 275

Panama Canal, 242-243
Patent Appeals, Court of, 179
Patent Office, 220
Payments, Federal consolidated cash statement, 1940-67, table 16, 431
Payments, Federal, summary, text table, 11
Payments to the public:
By function, 1956-67, table 20, 439
By program, text table, 19-20, 69
Relation of Federal sector, national income
accounts to, summary, table 7, 45
Summary, by function, table 2, 40
Peace Corps. 22, 90, 191
Pensions, veterans, 135
Permanent authorizations:
Explanations. 163
New obligational authority, summary of, by
type, table 3, 41
Summary, table 8, 46-47
Personal property activities, General Services
Administration, 319
Personnel, Federal, compensation and benefits,
table C-3, 402
Personnel management, central, 141-142

INDEX
Planning-programing-budgeting system, discussion, 32-33
Pollution control, air and water, 122
Post Office Department, 301-302
Postal service, 111-112
Poverty programs, 27, 123-126
Power resources, electric, 100-101
President of the United States:
Compensation, 182
Facilities for former Presidents, 321
Funds appropriated to the, 186-192
Productivity in Government, improvement of,
discussion, 34
Property management, 141
Property utilization and disposal activities,
General Services Administration, 320
Protective services, Department of Justice, 143
Public administration, Federal, State, and local,
improvement in, 32, 144
Public assistance, 127
Public Buildings Service, 318
Public debt:
Bureau of the, 311
Compared with statutory limitation, end of
year, table 11, 50
Discussion and text table, 30-31
End of year, 1789-1967, table 15, 430
Interest on, 315
Summary, table 11,50
Public enterprise funds:
Analysis of, 385-396
Balances, table B-3, 389
Explanation, 162
Gross expenditures and applicable receipts,
by agency, table B-l, 386
NOA and writeoffs, by agency, table B-2, 388
Public Health Service, 249-256
Public housing programs, 114-115, 271
Public Land Law Review Commission, 342
Public land management, 272-277
Public Roads, Bureau of, 223-225
Public welfare, 127
Public works acceleration, 191
Puerto Rico, Commission on Status of, 338
Purchases of U.S. securities by Government administered funds, table B-11, 396

Railroad Retirement Board, 342-343
Readjustment benefits, veterans', 136-137
Real property activities, General Services Administration, 318-319
Receipts:
Administrative budget, see Administrative
budget
Annexed budgets, table B-7, 392
By source, analysis, 54-66
By source, 1965-67, detailed list, table 13,
60-66
Consolidated cash statement, 1940-67, table

16, 431

Economic base of estimates, 54-55
Estimated changes in, 55-56
Estimated effect of proposed legislation on,
56-59




447

Receipts—Continued
From the public:
1956-67, table 20, 439
By source, text and table, 11,13
Relation to Federal sector national income
accounts, summary, table 7, 45
Summary, by source, table 2, 40
National income accounts:
1940-67, table 16, 431
1956-67, table 21, 440
Public enterprise funds, by agency, table B-1,
386
Summary, by source, table 1, 39
Trust funds, see Trust funds
Reclamation, Bureau of, 285-286
Records activities, General Services Administration, 320
Recreation, Outdoor, Bureau of, 275
Recreational resources, 102-103
Reimbursements iiuiii nvtii-A cugiai sources
from non-Federal o u u i t u
I9 I C L
J CU U 9
credited to appropriations and intragovernted
mental funds, table B-8, 393
al
Renegotiation Board, 343
Rent supplement, low-income tenants, 26
Research:
Agricultural, 97-98
Basic, assistance to, 132-133
Health, 118-122
Space, 22
Water resources, 101
Research and development:
Aeronautics and space, 91-93
Data availability, 104-106
Defense, Department of, 80-81, 234-235
Transportation, 225-226
Reserve Forces, Defense, 79-80
Resum6, budget, table 1,39
Retaliatory forces, Defense, 74-77
Revenues, estimates of, see Receipts
Revolving funds, military, 237-239
Rural Community Development Service, 205
Rural electrification, financing of, 96
Rural Electrification Administration, 58-59,203
Rural housing, 97
Rural life, improvement of, 23, 95, 96
Rural telephones, financing of, 96
Ryukyu Islands, Army, 241-242

Saint Elizabeths Hospital, 257-258
Saint Lawrence Seaway Development Corporation, 343
Saline Water, Office Q£, 289
Saline water conversion, 24, 101
Savings, Federal agency goals and achievements, discussion, 34
Science education, assistance for, 132-133
Science information, dissemination of, 104-106
Science and technology, 216-218
Science and Technology, Office of, 185
Sealift, defense, 76-79
Secret Service, U.S., 314-315
Securities, U.S., purchases of by Governmentadministered funds, table B-11, 396
Securities and Exchange Commission, 343

448

T H E BUDGET FOR FISCAL YEAR

Selective service program, 84
Selective Service System, 343
Senate, 166-168
Small business, aids to, 107
Small Business Administration, 344
Smithsonian Institution, 345-346
Social Security Administration, 258-259
Social security services, 126-129
Social security tax, self-employment, quarterly
payment, 57, 59
Soil Conservation Service, 194-195
Soldiers' Home, United States, 243
Southeast Asia, cost of commitments, 72
Southeast Asia commitments vs. Great Society
programs, discussion, 7-8
Southeast hurricane disaster, 191
Southeastern Power Administration, 287
Southwestern Power Administration, 288
Space research:
Discussion, 22
NOA and expenditures, 1965-67, distributed by agency, table 14, 146, 155
Program analysis, 91-93
Special projects, White House Office, 182
Sport Fisheries and Wildlife, Bureau of, 281-283
Standards, National Bureau of, 220-221
State, Department of, 86, 303-307
State and local governments, Federal agency
cooperation with, 32, 144
Statistical Reporting Service, Agriculture, 195
Statistics, Labor, Bureau of, 299
Stockpile of strategic and critical materials,
30,84
Subversive Activities Control Board, 346
Supersonic air transport, civil, 25, 110
Supreme Court of the United States, 179
Surplus or deficit:
Administrative budget, 1789-1967, table 15,
430
Consolidated cash statement, 1940-67, table
16,431
National income accounts, Federal sector,
1940-67, table 16, 431

1967

Transportation—Continued
Program analysis, 108-111
Research, 225-226
User charges for, 15, 57-58, 59
Water, 110-111
Travel Service, U.S. (Commerce), 216
Treasurer, Office of the, 314
Treasury Department, 308-315
Trust funds:
Analysis of, 385-396
Balances, table B-6, 391
By agency, 352-371
Expenditures:
By agency, summary, table 5, 43
By function, 1956-67, table 19, 434-438
By function, distrubuted by agency, 196567, table 14, 154-158
By function, summary, table 1, 39
By fund, table B-4, 390
Investment, operating, and other, summary, table 6, 44
Relation of, to obligational authority, summary, table 8, 47
Explanation, 162
New obligational authority:
By agency, summary, table 4, 42
By function, distributed by agency, 1965—
67, table 14, 154-158
By type and function, table 3, 41
Obligational authority, balances of, summary,
table 10, 49
Obligations incurred, net, by agency, table 9,
48
Receipts:
By fund, table B-4, 390
By source; 1956-67, table 18, 433
By source, detailed list, table 13, 64-66
Estimated effect of proposed legislation on
text and table, 59
Revolving, expenditures and applicable
receipts, table B-5, 391
Summary, table 1, 39
U

Tariff Commission, 346
Tax collection procedures, proposed changes, 14
Tax Court of the United States, 347
Tax proposals, estimated effects of, on receipts,
text and table, 55-59
Tax receipts, 55-56
Teacher Corps, 29, 134
Technical Services, Office of, 221
Tennessee Valley Authority, 347
Territories, Office of, 276
Trade Adjustment Office (Commerce), 215
Trade negotiations, special representative for,
185
Transportation:
Aviation, 109-110
Commerce Department programs, 222-226
Department of, proposed, 25
General Services Administration activities,
321
Mass, urban areas, discussion, 25, 114




United States Arms Control and Disarmament
Agency, 347
United States Information Agency, 90-91, 348
United States Secret Service, 314-315
United States Soldiers' Home, 243
United States Territorial Expansion Memorial
Commission, 336
United States Travel Service (Commerce), 216
Urban renewal, 25, 26, 112-114
User charges, 14-15, 57, 59, 98

Veterans Administration, 324-327
Veterans' benefits and services:
Discussion, 29-30
NOA and expenditures, 1965-67, distributed
by agency, table 14, 152-158
Program analysis, 135-140
Veterans' Reemployment Rights, Bureau of, 297
Vice President of the United States, 166

INDEX

Weather Bureau, 106,219
Welfare Administration (HEW), 259-261
Welfare, public, 127
White House Office, 182
Wildlife conservation, military reservations, 243
Wildlife resources, 103
Wildlife Service, see Fish and Wildlife Service
Wildlife, see also Sport Fisheries and Wildlife,
Bureau of
Women's Bureau, 298
Woodrow Wilson Memorial Commission, 337

Virgin Islands Corporation, 291
Vocational Rehabilitation Administration, 248249
Volunteers in Service to America (VISTA), 125
W

Wage and Hour Division, 298
Wage and labor standards, 298-299
Water development, 285-289
Water pollution, 27-28, 122
Water resources, 98-100
Water resources, agricultural, 96-97
Water resources, discussion, 24
Water Resources Research, Office of, 290
Water transportation, 110-111




449

Youth Opportunity Centers, 123

o





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102