Full text of Statements and Speeches of G. William Miller : Statement for the Senate Subcommittee on Appropriations

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Department of the TREASURY
WASHINGTON, D.C. 20220

TELEPHONE 566-2041

STATEMENT BY THE HONORABLE G. WILLIAM MILLER
SECRETARY OF THE TREASURY
FOR THE SENATE SUBCOMMITTEE ON APPROPRIATIONS
APRIL 15, 1980, 10:00 A.M.

Mr. Chairman, Members of the Committee:

I am pleased to be here with you to discuss the
Department of the Treasury operating budget request for
fiscal year 1981.

The Treasury bureau heads will follow me in justifying
their individual requests. With your permission, Mr.
Chairman, I would like to insert in the record a summary of
the highlights of our budget justifications before your
Committee.

We are requesting $3.6 billion and 118,377 average
positions for our regular operating appropriations for
fiscal year 1981. This represents an increase of $35
million and 568 positions over fiscal year 1980, primarily
in the Internal Revenue Service. These amounts reflect the
President’s budget revisions.
Before discussing the Treasury Department's budget
requests, I would like to comment briefly on our overall
economic policy. As you know, on March 14, President Carter
announced strong new measures to arrest inflation.
The
steps he proposed are bound to be very painful and
difficult. But I believe the American people, the Congress
and the Administration are now united in their determination
to bring inflation under control and to regain control over
our economic destiny. This new consensus is the strongest
tool of all in the fight against inflation.

The new measures we must take against inflation were
developed through one of the most extensive consultations
with Congressional leaders in our history. We are greatly
heartened by the spirit of cooperation and determination
reflected in these discussions.
The new measures mark a substantial intensification of
our on-going anti-inflation efforts on every front:
restraint in Federal spending to close the budget deficit,
restraint on credit expansion, efforts to reduce oil
imports, and structural reforms to enhance economic
efficiency. The fight against inflation is a dynamic
process.
It cannot be won by a single ’’package" of
measures. What is required is consistency and persistence,
coupled with a willingness to adapt particular policies to

M-427
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-2-

changing economic circumstances.
Economic circumstances have changed significantly since
the time the FY 1981 budget was put together last fall.
Through the end of last year, virtually all of the
acceleration in inflation was accounted for by energy, and
by the higher home financing costs associated with more
stringent monetary policy. But in January and February,
this inflationary acceleration began to spread into a broad
range of goods and services, indicating a worsening of
long-term inflationary expectations.

At the same time, increased international tensions gave
rise to concerns that expanded defense spending would
increase the budget.
Fears developed that the 1981 deficit
would expand beyond the $16 billion represented by the
President's proposals.

These forces also combined to generate serious
disturbances in financial markets.
Interest rates rose very
rapidly on virtually all financial instruments and some
financial markets virtually ceased to operate.
It was to respond forcefully to these changes in
economic circumstances that the President announced new
actions for combatting inflation, coupled with efforts to
augment the programs already in place.

First: The balanced budget for FY 1981 that the
Administration is submitting to the Congress will be the
first balanced budget since 1969. We must recognize that
prudent fiscal policy demands that the budget oscillate
around a true balance over the business cycle. During the
1970's, we have had continuous deficits, in both good times
and bad.
The new budget represents a powerful economic force.
The swing toward fiscal restraint between FY 1980 and FY
1981 will be approximately $50 billion, the largest ever in
nominal terms and one of the largest ever as a percentage of
GNP. And this increased fiscal stringency begins
immediately: many of the budget cuts will affect FY 80 as
well as 1981, and the gasoline conservation fee already
imposed by the President will begin generating revenues this
spring.

Because of this shift in fiscal policy, Treasury
demands on private capital markets will be reduced
substantially. Our borrowing needs will be reduced.
In the
next fiscal year, there will be a substantial reduction in
net new borrowing.
Balancing the Federal budget is the single most
important step we can take to reduce inflationary

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-3-

expectations and return order to capital markets.

Second:
By invoking the Credit Control Act of 1969,
the President has given the Federal Reserve new tools to
slow the growth of consumer and business borrowing.

Much of the strong growth in consumer spending over the
last year was fueled by increased consumer debt, and an
accompanying decline in the personal savings rate to the
lowest level in 30 years.
From January 1979 to January
1980, balances due by consumers on bankcards and other
revolving credit increased by 17 percent, and consumer loans
at finance companies increased by 25 percent.
It is
essential that consumer borrowing not add further to
inflationary pressures, either by stimulating consumption at
the expense of savings, or by encouraging consumers to buy
now in anticipation of higher prices later.
We have also seen very strong growth in business credit
over the last few months.
From late December through
mid-March, business borrowing from all short-term sources
grew at one of the fastest rates ever recorded for a similar
period, a development clearly inconsistent with reducing
inflation.
Relying solely on the traditional tools of monetary
policy to diminish credit growth would have placed
unnecessary strains on the financial system. The new tools
under the Credit Control Act will mitigate that stress.
However, there actions imply no diminution in the Fed's
commitment to deploy the conventional tools of monetary
policy as an anti-inflationary weapon. The President
invoked the Act in ways carefully designed to complement and
make more effective the traditional methods of monetary
control.

Third:
The 10 cent per gallon gasoline conservation
fee provides further impetus toward the vital objective of
reducing our use of imported oil.
Twice in the last 10
years, in 1974 and 1979, we experienced dramatic increases
in the price of imported oil; both times inflation worsened
seriously worldwide.
In 1979 alone, the price of imported
petroleum increased by about 100%.
To regain control of our
own economic destiny, we must reduce our dependence on
imported oil.
We estimate the gasoline conservation fee will reduce
oil imports by about 100,000 b/d in the short-run, and as
much as 250,000 b/d over the longer-run.
The fee is a
transitional measure; the Administration will submit to the
Congress a tax equivalent to an ad valorem tax on motor
fuels. Once it becomes effective, the new equivalent ad
valorem tax will replace both the present 4 cents a gallon
tax and the conservation fee.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-4The steps the President took on March 14, in concert
with the programs already in place, comprise a comprehensive
attack on the major factors contributing to inflation. The
program addresses the root causes of inflation, not merely
the symptoms. We have endured a decade of persistent budget
deficits, very high inflation, and soaring oil import bills.
Reversing these trends will take firm and patient leader
ship.
I believe, however, that we will succeed. What we
are witnessing in Washington and throughout the nation is,
in my judgment, the formation of a new and deep commitment
to a process of economic renewal.

Let me return now to the Treasury Department's fiscal
year 1981 budget.
Fiscal Year 1981 Treasury Overview
As I mentioned before, the estimates contained in the
President's budget for fiscal year 1981 indicate that the
Treasury will require a total of $3.6 billion for operating
accounts.

I would like to bring to the Committee's attention some
of the highlights of the type and level of workload facing
the Department in fiscal year 1981.
For example:

The Department will process over 139 million tax
returns in fiscal year 1981, an increase of over 2
million from the previous year.
We expect an increase of over 9 percent in
delinquent tax accounts processed and secured.
We estimate that 40.3 million taxpayers will come
to us for assistance.

We anticipate that 284 million persons will be
arriving at U.S. borders — 3 percent more than in
1980 — and that we will be processing almost 5
million formal entries — almost 7 percent more
than 1980.
We expect to manufacture approximately 15 billion
coins in 1981.

Over 153 million savings-type securities will be
issued and almost 163 million retired.
The Department will also issue 729 million checks,
an increase of over 2 percent.
The $3.6 billion request for 1981 represents a net
increase of $35 million and 568 average positions over 1980
levels. Of the total,
$34 million and 409 average

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-5-

positions are needed to handle additional workload generated
outside the Department and is totally uncontrollable by us.
The Internal Revenue Service will need $22 million of this
amount for processing and examining additional tax returns,
collecting delinquent taxes and for legal services.
$10
million will be needed by the Bureau of the Public Debt for
issuing and redeeming securities, while the remaining $2
million is for other miscellaneous increases.
The major program expansion — that is, an increase in
the quality of our programs — contained in our estimates
involves $36 million and 1,166 average positions.
This
program increase is made up of several major items and many
small but necessary items scattered throughout the
Department. The increases are shown below:

$20.9 million and 989 average positions to provide
resources in the Internal Revenue Service for
matching of information returns and follow-up
collections — with an estimated revenue return of
$375 million.
$5.1 million to provide for site preparation at
several IRS Service Centers in support of the ADP
Equipment Replacement Program.
$3.0 million and 135 average positions to provide
additional resources in the IRS to collect unpaid
accounts — producing a revenue return of
approximately $55 million.

$6.9 million and 42 average position for other
program increases spread across the other Treasury
Bureaus.

These increases are offset by a net reduction of $34.5
million and 1,007 average positions.
This represents the
cost of maintaining current operating levels on Treasury
programs offset by one-time costs savings, management
improvements, and productivity savings.
The operating accounts in the budget estimate reflect
our continuing effort to strike a reasonable balance between
the Department’s program needs and the desire to stabilize
the growth in Government spending. The increases in this
budget do help offset the impact of inflation on the
Department.
It is my view that the budget estimate before
you will assure that the revenue is protected, that income
tax returns are processed, that customs declarations and
duties are effeciently collected and deposited, and that
alcohol and tobacco excise taxes are promptly collected.
It
provides adequate funding to secure necessary financing to
pay the Government's bills and maintain the Government books
in a businesslike manner.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-6-

I would like to insert Table 2 into the record to show
the relationship between our average position and dollar
requirements, as well as Table 3, which illustrates the
detailed derivation of Treasury's "proposed authorized level
for 1980."
Mr. Chairman, this concludes my prepared statement.
shall, of course, welcome the opportunity to answer any
questions you may have.
Thank you.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Table 1
THE DEPARTMENT OF THE TREASURY

Annual Approporiations for the rY 1980 and
Estimates Requirements for FY 1981
(In Millions of Dollars)

1980
Proposed
Authorized
Level

Re v i s e a
1981
Budget
Estimates

Increase (+)
Decrease (-)
Compared to
1980

Regular Operating Appropriations:
Office of the Secretary

31.8

34.0

$ + 2. 2

International Affairs

22.8

23.7

+ .9

Federal Law Enforcement Training
Center

13.4

—

190.0

188.0

-2.0

2.0
.2

...
—

-2.0
-.2

Bureau of Alcohol, Tobacco and
Firearms

143.7

144. 8

+ 1.1

U.S. Customs Service

464.3

465.7

+ 1.4

59.4

61.0

+ 1.6

Bureau of the Public Debt

209.6

196.6

-13.0

Internal Revenue Service:
Salaries and Expenses
Taxpayer Ser. & Returns Proc.
Examinations and Appeals
Investigations and Collections

150.0
802.7
837.3
501.4

157. 8
811.7
852.9
536.7

+ 7. 8
+ 9.0
+ 15.6
+ 35.3

Total, Internal Revenue Ser.

2,291.4

2,359.1

+ 67.7

1.9

—

-1.9

177.7

157.0

-20.7

$3,608.2

$3,643.3

$+35.1

Bureau of Gov’t Financial Oper:
Salaries and Expenses
Payments to Guam, V.I. and
American Somoa
Government Losses in Shipment

Bureau of the Mint:
Salaries and Expenses

Payment Where Energy Credit
Exceeds Tax Liability
U.S. Secret Service
TOTAL, Regular Operating Appro

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Table 2

the department of the treasury
Comparative Statement of Average Positions
Fiscal Year 1980 and 1981

(Direct Appropriations Only)

1980
Authorized
Level

Revised
1981
Budget
Estimate

Increase
Decrease
Compared
1980

Reqular Operating Appropriations:
787

798

+11

Office of the Secretary

487

458

-29

International Affairs

Federal Enforcement Training Center

253

256

2,750

2,696

-54

Bureau of Gov't Financial Oper.

Bureau of Alcohol, Tobacco and
Firearms

3,778

3,737

-41

13,643

13,529

-114

1,722

1,710

-12

Bureau of the Mint

2,679

2,640

-39

Bureau of the Public Debt

4,558
34,995
30,367
18,264

4,666
34,141
30,292
19,928

+ 108
-854
-75
+1,664

88,184

89,027

+ 843

3,526

117,809

118,377

U.S. Customs Service

Internal Revenue Service:
Salaries and Expenses
Taxpayer Ser. & Returns Proc.
Examinations and Appeals
Investigations and Collections
TOTAL, IRS
U.S. Secret Service

TOTAL, Regular Operating Appro.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

+ 568

THE DEPARTMENT OF THE TREASURY
Derivation of "Proposed Authorized Level for 1980"
(In Thousands of Dollars)

1980 Appropriation.....................................

Table 3

$3,435,622

Proposed Supplementals:
1.

Pay Increase:

Classified........................... $132,284
Wage Board...........................
229

a.
b.

+132,513

Program:

tion

Act

1977......................................................................................$2,000

Internal Revenue Service (Payment Where Energy
Credit Exceeds Tax Liability) - Provides for
additional payments to businesses when the solar
wind credit due them exceeds the amount of tax
liability owed......................... $1,000

Public Debt - Provides for increase workload
occurring in savings bond redemptions, Treasury
bill book-entry accounts, and other Bureau
operations............................ $23,558

<3.

Secret Service - Provides for the increase
cost of protective travel, Presidential candi
date and nominee protection (10,800) and reim
bursements to State and Local governments for
protection of foreign diplomatic missions under
extraordinary circumstances (2,750)...$13,550

+40,108

Proposed Appropriation Transfer:

Office of the Secretary (transfer of
Anti-Dumping and Countervailing Duty
Program to Commerce)

International Affairs (transfer to
Special Trade Representative)

U.S. Customs Service (transfer of AntiDumping and Countervailing Duty Program
to Commerce)

-5,271

U.S. Secret Service (transfer from Mint
construction account to fund pay increase
requirements)

+5,730

Proposed Authorized Level for 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-329

-88

3,608,285

THE DEPARTMENT OF THE TREASURY
HIGHLIGHTS OF THE PRESIDENT'S FY 1931 BUDGET
The President's Budget for the Department of the Treasury
Requests $79,001,042,000 for FY 1981 — a decrease of
$16,333,208,000 compared to 1980.
This represents an increase
of $6,300,000,000 for interest on the public debt, an increase
of $75,118,000 for operating accounts ($35,070,000 under Treasury.
Post Office Subcommittee, $40,246,000 under Hud-Independent
Agencies Subcommittee and a decrease of $198,000 under the State,
Judiciary and Commerce Subcommittee), and a decrease of
$22,708,326,000 in all other accounts, such as trust funds and
revolving accounts, receipts, energy security corporation, and
indefinite accounts. Funds for the Department’s operating programs total $3,741,365,000 an increase of $75,118,000 over 1980.
These operating programs are the ones that receive the most scru
tiny by our Congressional Appropriations Committees.

Relative to the Department’s employment, the budget pro
vides for a 1981 level of 118,555 average positions (118,377
under Treasury-Post Office Subcommittee, and 158 under HUDIndependent Agencies Subcommittee and 20 under the State, Judi
ciary and Commerce Subcommittee) for the operating accounts, an
increase of 576 (568 under Treasury-Post Office Subcommittee
and 8 under the State, Judiciary and Commerce Subcommittee) com
pared to 1980.

Budget Authority Increases for Treasury Subcommittee Operating
Accounts — Net $35,070,000
+ 33,799,000 — to meet workload increases, for the following
items:
$8.2 million for processing tax returns,
$4.1 million for examination of tax returns,
$7.0 million for collection of delinquent taxes,
$3.0 million for legal services, $1.2 million
for check issuance, $9.7 million for issuing
and redeeming securities, $0.3 million for Office
of the Secretary workload, and $0.3 million for
other increases.
+ 20,869,000 — to provide additional resources in the Internal
Revenue Service for matching of information
returns and follow-up collections.
+

5,081,000 — to provide for site preparation of several IRS
Service Centers in support of the ADP equip
ment replacement program.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

increases - Operating Accounts (continued)
2,980,000 - to provide additional resources in the IRS to

collect unpaid accounts.

600,000 - for repairs and improvements to the Treasury
Annex elevators.
2 937 000 - to provide for acquisition of equipment in
2,93/,uuu
sev£ral treasury bureaus.

350 000 - to provide additional resources in the Secret
350,000
Ser£ice for technical security.
r
(.

r
QaiArv Equalization Program, Asian
700,000 — for the Salary
Development Bank.

2,292,000 — for other program increases.

promotion, space rental, FTS cos
ing costs, health benefits, etc.

, P-

- <5 jxMWssksuynicn u---- ------.
■—
409 - average positions of ne^employees -meet^orkload
increases for the to
.
manufacturing of
coTns^Hin^fo'the'office of the Secretary

and Government Financial Operations.
989 .. average positions ^Provide additional resources^
IRS for matching of information returns
up collections.

135 - average positions to provide additional resources in
135
IRS to collect delinquent unpaid accounts.
10 - average positions for the check payment and reconci

liation program in GFO.
32 - average positions for other program increases.
34 - average Portions to provide full-year^ost in 1981

for programs authorized -u

, 041 — average positions for non-recurring savings, program
1,041
reductions, and productivity savings.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3
Assumptions
The estimates are based on the assumptions that:
i

All possible efforts will be made to hold Governmen t expenditures to a minimum particularly in this budget year when most,
workload increases have been offset by productivity saving s
and program reductions.

Pav increases for classified employees under Executive Order
12165 will be provided in 1980 supplemental appropriations.
Increased productivity and management savings will be applied
to the maximum extent.

Demands for Treasury services will continue to increase and
must be met:

Government checks issued and paid,

Bond and security records maintained.

Coins, currency and stamps produced for nation’s commerce.

Internal Revenue master file maintained in a current
manner and tax returns processed.

Check claims cases settled promptly.

Cargo and persons entering our borders should be pro
cessed equitably and efficiently.

Smuggling of all contraband should be identified and
halted where possible.

Summary Analysis of FY 1981 Estimates
for Operating Bureaus and Offices
Office of the Secretary - $33,995,000

—

Net increase is $2,241,000 and 11 average positions of
employment.

$344,000 and 8 average positions are needed for increasec
workload.
_

$600,000 is requested for repairs and improvements to
the Treasury Annex elevators.
$325,000 and 10 average positions are included for- the
new insurance office.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Office of the Secretary (continued)

—

SI 477,000 and 2 average position are needec to maintain
current levels of operations - within-grade Ptomo^ons,
annualization of pay increases, space rental co.ts,

—

A reduction of 5505,000 and 9 average positions are prin
cipally for non-recurring and one-time costs and productivity savings.

International Affairs - $23,671,000
—

—
--

—

Net increase is $834,000 and a decrease of 29 average
positions of employment.

$700,000 is required for the Salary Equalization Program,
Asian Development Bank.

SI 558,000 is provided to maintain current levels Oi
operation — within-grade promotions, price increases,
annualization of pay increases, etc.

A reduction of 51,424,000 and 29 average positions is for
productivity savings and non-recurring one-time costs.

Federal Law Enforcement Training Center - 513 ,-100 ,000 f
-- --- - ------OdldLiCO

—
—

—

Net decrease for Salaries and Expenses of $2,000 and an
increase of 3 average positions of employment.
An increase of 5753,000 and 3 average positions are for the
costs related to maintaining current levels °-.°Pe^tions
within-grade promotions, annualization of pay increases,
price increases, etc.

A reduction of 5755,000 is for productivity savings, pro
gram reductions, and non-recurring one-time costs.

But•pau of Government Financial Operations

Salaries and Expenses - $188,012,000

—

Net decreases are 52,027,000 and 54 average positions oi
employment.

—

51,193,000 and a decrease of 6 average positions are for
workload in the check issuance area.

—

$490,000 is to provide for ADP and capital equipment
acquisitions.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

GFO, Salaries and Expenses (continued)

$486,000 and 10 average positions are for the check payment
and reconciliation program.
$229,000 and 5 average positions are for other program
increases.
$1,539,000 is required to maintain current staff levels -within-grades, space rental, annualization of postage
increases and full-year costs of programs authorized for
part of 1980.

Reductions of $5,964,000 and 63 average positions for
management savings, non-recurring one-time costs and
program reductions.
Payments to Guam, Virgin Islands and American Samoa - $-2,000,000

A net reduction of $2,000,000 for one-time payments occuring in 1980.

Government Losses in Shipment - $-200,000.
A net reduction of $200,000 for one-time payment occuring
in 1980.

Bureau of Alcohol, Tobacco and Firearms - $144,844,000

A net increase of $1,142,000 and a reduction of 41 average
positions of employment.
$997,000 is required for additional equipment.
$3,666,000 is for costs to maintain current levels of
operations which include such items as within-grade pro
motions, grade to grade promotions, and increased print
ing, postage, and space costs.

A reduction of $3,521,000 and 41 average positions for
program reductions and non-recurring costs and savings.

U.S. Customs Service - $465,700,000
Net increase of $1,361,000 and a reduction of 114 average
positions of employment.

$1,450,000 is for additional vehicles and enforcement
equipment.
$386,000 and 8 average positions are for the regulatory
audit program.
April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

U.S. Customs Service (continued)

$525,000 and 9 average positions are for safety and health
programs.
An increase of $11,467,000 and 29 average positions are to
maintain current levels of operation — within-grade pro
motions, grade to grade promotions, price increases,
annualization of pay increases, space increases, etc.

A reduction of $12,467,000 and 160 average positions are
for non-recurring costs and savings, productivity savings,
and program reductions.
Bureau of the Mint
Salaries and Expenses - $60,956,000

Net increase for Salaries and Expenses, $1,599,000 and a
decrease of 12 average positions.

—

A reduction of $2,929,000 and 22 average positions is for
non-recurring costs and savings and program reductions.
Bureau of the Public Debt - $196,625,000
A reduction of $13,015,000 and a reduction of 39 average
positions of employment.
$9,671,000 is for compensation of issuing and paying agents
for redemption and sale of savings bonds and reimbursement
to Federal Reserve Banks for services.

$341,000 is for other program increases.
$2,418,000 to maintain current levels of operations, includ
ing such major items as within-grade promotions, annualiza
tion of pay increases, space rental costs, annualization of
postage, etc.

A reduction of $25,445,000 and 39 average positions for non
recurring costs, and management savings.
April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

7
Internal Revenue Service - $2,359,111,000

Salaries and Expenses - $157,762,000

—

A net increase of $7,782,000 and 108 average positions of
employment.
$3,152,000 and 63 average positions are for increased workload
$6,678,000 and 60 average positions are to maintain current
levels of operations — within-grade promotions, annualiza
tion of pay increases, space rental costs, etc.

A reduction of $2,048,000 and 15 average positions covering
non-recurring costs and savings and program reductions.

Taxpayer Service and Returns Processing - $811,744,000
_

Net increase of $8,996,000 and a decrease of 854 average
positions of employment.
$8,202,000 and 4 average positions for processing addi
tional tax returns.
$5,750,000 and 302 average positions are for matching
additional information returns and related follow-up col
lections .

$5,081,000 is for site preparation at several service
centers in support of the ADP Equipment Replacement Program.

—

An increase of $13,856,000 and a reduction of 812 average
positions is to maintain current levels of operations
including such items as within-grade promotions, grade-tograde promotions, annualization of pay raises, etc.

—

A reduction of $23,893,000 and 348 average positions is
for non-recurring costs and savings and program reductions.

Examinations and Appeals - $852,925,000
—

A net increase of $15,609,000 and a decrease of 75 average
positions of employment.

An increase of $4,069,000 for examination of additional tax
returns.

—

An increae of $4,527,000 and 233 average positions for
examinations of tax returns derived from the information
returns program.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

IRS, Examinations and Appeals (continued)
increase of $19,103,000 and a reduction of 63 average
positions are to maintain current levels of operations
including such items as within-grade promotions, grade
to-grade9promotions, annualization of pay increases,
An

A reduction of $12,090,000 and 245 average positions is
for non-recurring costs and savings and productivity
savings.

Investigations and Collections - $536,680,000

—

A net increase of $35,259,000 and 1,664 average positions
of employment.

—

$6,963,000 and 330 average positions are for collection of
delinquent taxes related to additional workload.
592 000 and 454 average positions are for follow-up
investigations derived from the information returns program.
tin

—

$2,980,000 and 135 average positions are for an increases
effort to collect unpaid accounts.

—

$21,002,000 and 815 average positions to maintain extent
levels of operation — within-grade promotions, grade-tograde promotions, space rental costs, annualization of pay
increases and programs authorized for part d FY 1980 etc.

A reduction of $6,278,000 and 70 average positions cover
ing non-recurring costs and savings and program reductions.

Payment where Energy Credit Exceeds Tax Liability - $-1,900,000

—

Net decrease of $1,900,000 for one-time non-recurring costs
in 1980 (this account is proposed as an indefinite in 19

U.S. Secret Service - $157,041,000
—

Net decrease is $20,609,000 with no change proposed in

average positions.
_

5350,000 is for technical security equipment.

—

$2 339,000 is for those costs required to maintain current
levels of operation - within-grade promotions, grade-tograde promotions, annualization of pay, space rental, etc.

—

A reduction of $23,298,000 is for non-recurring
costs and program reductions primarily 'el^ed to -the can
didate and nominee protection program in the 1980 budget.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

—

Department of the TREASURY
WASHINGTON, D.C. 20220

TELEPHONE 566-2041

ii
STATEMENT BY THE HONORABLE G. WILLIAM MILLER
SECRETARY OF THE TREASURY
FOR THE SENATE SUBCOMMITTEE ON APPROPRIATIONS
APRIL 15, 1980, 10:00 A.M.

Mr. Chairman, Members of the Committee:

I am pleased to be here with you to discuss the
Department of the Treasury operating budget request for
fiscal year 1981.
The Treasury bureau heads will follow me in justifying
their individual requests. With your permission, Mr.
Chairman, I would like to insert in the record a summary of
the highlights of our budget justifications before your
Committee.

We are requesting $3.6 billion and 118,377 average
positions for our regular operating appropriations for
fiscal year 1981. This represents an increase of $35
million and 568 positions over fiscal year 1980, primarily
in the Internal Revenue Service. These amounts reflect the
President’s budget revisions.
Before discussing the Treasury Department's budget
requests, I would like to comment briefly on our overall
economic policy. As you know, on March 14, President Carter
announced strong new measures to arrest inflation. The
steps he proposed are bound to be very painful and
difficult. But I believe the American people, the Congress
and the Administration are now united in their determination
to bring inflation under control and to regain control over
our economic destiny.
This new consensus is the strongest
tool of all in the fight against inflation.

The new measures we must take against inflation were
developed through one of the most extensive consultations
with Congressional leaders in our history. We are greatly
heartened by the spirit of cooperation and determination
reflected in these discussions.
The new measures mark a substantial intensification of
our on-going anti-inflation efforts on every front:
restraint in Federal spending to close the budget deficit,
restraint on credit expansion, efforts to reduce oil
imports, and structural reforms to enhance economic
efficiency. The fight against inflation is a dynamic
process.
It cannot be won by a single ''package'' of
measures. What is required is consistency and persistence,
coupled with a willingness to adapt particular policies to

M-427
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-2-

changing economic circumstances.

Economic circumstances have changed significantly since
the time the FY 1981 budget was put together last fall.
Through the end of last year, virtually all of the
acceleration in inflation was accounted for by energy, and
by the higher home financing costs associated with more
stringent monetary policy. But in January and February,
this inflationary acceleration began to spread into a broad
range of goods and services, indicating a worsening of
long-term inflationary expectations.

Balancing the Federal budget is the single most
important step we can take to reduce inflationary

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-3-

expectations and return order to capital markets.

Second: By invoking the Credit Control Act of 1969,
the President has given the Federal Reserve new tools to
slow the growth of consumer and business borrowing.

Much of the strong growth in consumer spending over the
last year was fueled by increased consumer debt, and an
accompanying decline in the personal savings rate to the
lowest level in 30 years.
From January 1979 to January
1980, balances due by consumers on bankcards and other
revolving credit increased by 17 percent, and consumer loans
at finance companies increased by 25 percent.
It is
essential that consumer borrowing not add further to
inflationary pressures, either by stimulating consumption at
the expense of savings, or by encouraging consumers to buy
now in anticipation of higher prices later.
We have also seen very strong growth in business credit
over the last few months.
From late December through
mid-March, business borrowing from all short-term sources
grew at one of the fastest rates ever recorded for a similar
period, a development clearly inconsistent with reducing
inflation.
Relying solely on the traditional tools of monetary
policy to diminish credit growth would have placed
unnecessary strains on the financial system. The new tools
under the Credit Control Act will mitigate that stress.
However, there actions imply no diminution in the Fed’s
commitment to deploy the conventional tools of monetary
policy as an anti-inflationary weapon. The President
invoked the Act in ways carefully designed to complement and
make more effective the traditional methods of monetary
control.

We estimate the gasoline conservation fee will reduce
oil imports by about 100,000 b/d in the short-run, and as
much as 250,000 b/d over the longer-run. The fee is a
transitional measure? the Administration will submit to the
Congress a tax equivalent to an ad valorem tax on motor
fuels.
Once it becomes effective, the new equivalent ad
valorem tax will replace both the present 4 cents a gallon
tax and the conservation fee.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-4-

The steps the President took on March 14, in concert
with the programs already in place, comprise a comprehensive
attack on the major factors contributing to inflation. The
program addresses the root causes of inflation, not merely
the symptoms. We have endured a decade of persistent budget
deficits, very high inflation, and soaring oil import bills.
Reversing these trends will take firm and patient leader
ship.
I believe, however, that we will succeed. What we
are witnessing in Washington and throughout the nation is,
in my judgment, the formation of a new and deep commitment
to a process of economic renewal.
Let me return now to the Treasury Department's fiscal
year 1981 budget.

Fiscal Year 1981 Treasury Overview
As I mentioned before, the estimates contained in the
President's budget for fiscal year 1981 indicate that the
Treasury will require a total of $3.6 billion for operating
accounts.

I would like to bring to the Committee's attention some
of the highlights of the type and level of workload facing
the Department in fiscal year 1981.
For example:
The Department will process over 139 million tax
returns in fiscal year 1981, an increase of over 2
million from the previous year.

We expect an increase of over 9 percent in
delinquent tax accounts processed and secured.
We estimate that 40.3 million taxpayers will come
to us for assistance.
We anticipate that 284 million persons will be
arriving at U.S. borders — 3 percent more than in
1980 — and that we will be processing almost 5
million formal entries — almost 7 percent more
than 1980.
We expect to manufacture approximately 15 billion
coins in 1981.

Over 153 million savings-type securities will be
issued and almost 163 million retired.
The Department will also issue 729 million checks,
an increase of over 2 percent.

The $3.6 billion request for 1981 represents a net
increase of $35 million and 568 average positions over 1980
levels. Of the total,
$34 million and 409 average

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-5-

$5.1 million to provide for site preparation at
several IRS Service Centers in support of the ADP
Equipment Replacement Program.
$3.0 million and 135 average positions to provide
additional resources in the IRS to collect unpaid
accounts — producing a revenue return of
approximately $55 million.

$6.9 million and 42 average position for other
program increases spread across the other Treasury
Bureaus.

These increases are offset by a net reduction of $34.5
million and 1,007 average positions.
This represents the
cost of maintaining current operating levels on Treasury
programs offset by one-time costs savings, management
improvements, and productivity savings.
The operating accounts in the budget estimate reflect
our continuing effort to strike a reasonable balance between
the Department’s program needs and the desire to stabilize
the growth in Government spending. The increases in this
budget do help offset the impact of inflation on the
Department.
It is my view that the budget estimate before
you will assure that the revenue is protected, that income
tax returns are processed, that customs declarations and
duties are effeciently collected and deposited, and that
alcohol and tobacco excise taxes are promptly collected.
It
provides adequate funding to secure necessary financing to
pay the Government’s bills and maintain the Government books
in a businesslike manner.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-6-

In addition, the budget estimate provides for an
even-handed law enforcement effort. While the significant
responsibilities for law enforcement rest with the
Department of Justice, the Treasury Department is
responsible for that segment of law enforcement related to
the protection of currency, the tax system, and the customs
and excise taxes, as well as regulation and control of
firearms, explosives, and smuggling.
I would like to insert Table 2 into the record to show
the relationship between our average position and dollar
requirements, as well as Table 3, which illustrates the
detailed derivation of Treasury’s "proposed authorized level
for 1980."

Mr. Chairman, this concludes my prepared statement.
shall, of course, welcome the opportunity to answer any
questions you may have. Thank you.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Table 1
THE DEPARTMENT OF THE TREASURY
Annual Approporiations for the rY 1980 and
Estimates Requirements for FY 1981
(In Millions of Dollars)

1980
Proposed
Authorized
Level

Revised
1981
Budget
Estimates

Increase
Decrease
Compared
1980

Regular Operating Appropriations:

Office of the Secretary

31.8

34.0

$ +2. 2

International Affairs

22.8

23.7

+ .9

Federal Law Enforcement Training
Center

13.4

—

190.0

188.0

-2.0

2.0
.2

—
—

-2.0
-.2

Bureau of Alcohol, Tobacco and
Firearms

143.7

144. 8

+ 1.1

U.S. Customs Service

464.3

465.7

+ 1.4

59.4

61.0

+ 1.6

Bureau of the Public Debt

209.6

196.6

-13.0

Internal Revenue Service:
Salaries and Expenses
Taxpayer Ser. & Returns Proc.
Examinations and Appeals
Investigations and Collections

150.0
802.7
837.3
501.4

157.8
811.7
852.9
536.7

+ 7. 8
+ 9.0
+ 15.6
+ 35.3

Total, Internal Revenue Ser.

2,291.4

2,359.1

+ 67.7

1.9

—

-1.9

177.7

157.0

-20.7

Bureau of Gov't Financial Oper:
Salaries and Expenses
Payments to Guam, V.I. and
American Somoa
Government Losses in Shipment

Bureau of the Mint:
Salaries and Expenses

Payment Where Energy Credit
Exceeds Tax Liability

U.S. Secret Service

TOTAL, Regular Operating Appro

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

$3,608.2

$3,643.3 •

$+35.1

Table 2

THE DEPARTMENT OF THE TREASURY
Comparative Statement of Average Positions
Fiscal Year 1980 and 1981

(Direct Appropriations Only)

1980
Authorized
Level

Revised
1981
Budget
Estimate

Increase
Decrease
Compared
1980

Regular Operating Appropriations:

Office of the Secretary

787

798

+ 11

487

458

-29

International Affairs

Federal Enforcement Training Center

253

256

Bureau of Gov’t Financial Oper.

2,750

2,696

-54

Bureau of Alcohol, Tobacco and
Firearms

3,778

3,737

-41

13,643

13,529

-114

1,722

1,710

-12

Bureau of the Mint
Bureau of the Public Debt

2,679

2,640

-39

4,558
34,995
30,367
18,264

4,666
34,141
30,292
19,928

+108
-854
-75
+1,664

88,184

89,027

+ 843

3,526

117,809

118,377

U.S. Customs Service

Internal Revenue Service:
Salaries and Expenses
Taxpayer Ser. & Returns Proc.
Examinations and Appeals
Investigations and Collections
TOTAL, IRS
U.S. Secret Service

TOTAL, Regular Operating Appro.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

+ 56 8

THE DEPARTMENT OF THE TREASURY
Derivation of "Proposed Authorized Level for 1980"
(In Thousands of Dollars)
1980 Appropriation......

Table 3

$3,435,622

Proposed Supplemental:
1.

Pay Increase:

a.
b.
2.

Classified
Wage Board

$132,284
229

+132,513

Program:

Government Financial Operations (Payments to
Virgin Islands) - This proposed supplemental
appropriation would provide funds to reimburse
the Government of Virgin Islands for losses
incurred under the Tax Reduction and Simplication Act of 1977......................................................................................$2,000

Public Debt - Provides for increase workload
occurring in savings bond redemptions, Treasury
bill book-entry accounts, and other Bureau
operations............................ $23,558

<3.

+40,108

Proposed Appropriation Transfer:

Office of the Secretary (transfer of
Anti-Dumping and Countervailing Duty
Program to Commerce)

International Affairs (transfer to
Special Trade Representative)

U.S. Customs Service (transfer of AntiDumping and Countervailing Duty Program
to Commerce)

-5,271

U.S. Secret Service (transfer from Mint
construction account to fund pay increase
requirements)

+5,730

Proposed Authorized Level for 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-329

-88

3,608,285

THE DEPARTMENT OF THE TREASURY
HIGHLIGHTS OF THE PRESIDENT'S FY 1981 BUDGET
The President’s Budget for the Department of the Treasury
Requests $79,001,042,000 for FY 1981 — a decrease of
$16,333,208,000 compared to 1980.
This represents an increase
of $6,300,000,000 for interest on the public debt, an increase
of $75,118,000 for operating accounts ($35,070,000 under Treasury'
Post Office Subcommittee, $40,246,000 under Hud-Independent
Agencies Subcommittee and a decrease of $198,000 under the State,
Judiciary and Commerce Subcommittee), and a decrease of
$22,708,326,000 in all other accounts, such as trust funds and
revolving accounts, receipts, energy security corporation, and
indefinite accounts. Funds for the Department's operating programs total $3,741,365,000 an increase of $75,118,000 over 1980.
These operating programs are the ones that receive the most scru
tiny by our Congressional Appropriations Committees.

Relative to the Department's employment, the budget pro
vides for a 1981 level of 118,555 average positions (118,377
under Treasury-Post Office Subcommittee, and 158 under HUDIndependent Agencies Subcommittee and 20 under the State, Judi
ciary and Commerce Subcommittee) for the operating accounts, an
increase of 576 (568 under Treasury-Post Office Subcommittee
and 8 under the State, Judiciary and Commerce Subcommittee) com
pared to 1980.
Budget Authority Increases for Treasury Subcommittee Operating
Accounts — Net $35,070,000

+ 33,799,000 — to meet workload increases, for the following
items:
$8.2 million for processing tax returns,
$4.1 million for examination of tax returns,
$7.0 million for collection of delinquent taxes,
$3.0 million for legal services, $1.2 million
for check issuance, $9.7 million for issuing
and redeeming securities, $0.3 million for Office
of the Secretary workload, and $0.3 million for
other increases.
+ 20,869,000 — to provide additional resources in the Internal
Revenue Service for matching of information
returns and follow-up collections.

5,081,000 — to provide for site preparation of several IRS
Service Centers in support of the ADP equip
ment replacement program.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
increases - Operating Accounts (continued)

2 980,000 - to provide additional resources in the IRS to

collect unpaid accounts.

600,000 — for repairs and improvements to the .rea^u...
Annex elevators.

2 937,000 — to provide for acquisition of equipment in
'
several Treasury bureaus.

350 000 - to provide additional resources in the Secret
350,
service for technical security.

+
+

700,000 — for the Salary Equalization Program, Asian
Development Bank.

2,292,000 — for other program increases
, 90 179 000 — to maintain current levels of
+ 90,l/*,uuu
within-grade promotions, graae to groae
promotion, space rental, FTS costs, printing costs, health benefits, etc.

Employment - Increase of 568 Average Positions
+

409 - average positions of new employees -meet^or.load

and Government Financial Operations.

coitions to provide additional resources in
989 — average positions to P
£
returns and followIRS for matching of information revut
up collections.

135 _
1

average positions to provide additional resources
IRS to collect delinquent unpaid accounts.

10 - average positions for the check payment and reconci-

liation program in GFO.
32 - average positions for other program increases.

34 - average positions to provide
=°st in 1981
for programs authorized for part of 1980.

1 041 - average positions for non-recurring savings, program
1,0
reductions, and productivity savings.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3
Assumptions

The estimates are based on the assumptions that:
^11 possible efforts will be made to hold Governmen t expenditures to a minimum particularly in this budget year when most
workload increases have been offset by productivity saving s
and program reductions.
Pay increases for classified employees under Executive Order
12165 will be provided in 1980 supplemental appropriations.

Increased productivity and management savings will be applie
to the maximum extent.
Demands for Treasury services will continue to increase anc
must be met:

Government checks issued and paid.

Bond and security records maintained.

Coins, currency and stamps produced for nation’s commerce

Internal Revenue master file maintained in a current
manner and tax returns processed.

Check claims cases settled promptly.

Cargo and persons entering our borders should be pro
cessed equitably and efficiently.

Smuggling of all contraband should be identified and
halted where possible.

Summary Analysis of FY 1981 Estimates
for Operating Bureaus and Offices
Office of the Secretary - $33,995,000

—

Net increase is 52,241,000 and 11 average positions of
employment.

$344,000 and 8 average positions are needed for increased
workload.
$600,000 is requested for repairs and improvements to
the Treasury Annex elevators.

$325,000 and 10 average positions are included for- the
new insurance office.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4
Office of the Secretary (continued)

to maintain
$1,477,000 and 2 average position are needed promotions,
current levels of operations - within-grade costs, etc.
annualization of pay increases, space rental

A reduction of $505,000 and 9 average positions are principally for non-recurring and one-time costs and productivity savings.

International Affairs - 523,671,000

—

Net increase is 5834,000 and a decrease of 29 average
positions of employment.

_ $700,000 is required for the Salary Equalization Prog^a.,.,
Asian

Development Bank.

$1 558,000 is provided to maintain current 1 evels of
operation — within-grade promotions, price increases
annualization of pay increases, etc.

f $1,424,000 and 29 average positions is for
A reduction o
productivity savings and non-recurring one-time costs
Federal Law Enforcement Training Center

$13,400,000 for
Salaries and Expenses

Net decrease for Salaries and Expenses of $2,000 and an
increase of 3 average positions of employment.

—

An increase of 5753,000 and 3 average positions are for the
costs related to maintaining current levels of operations
within-grade promotions, annualization of pay increases,
price increases, etc.

—

A reduction of 5755,000 is for productivity savings, pro
gram reductions, and non-recurring one-time costs.

Bureau of Government Financial Operations
Salaries and Expenses - 5188,012,000
—

Net decreases are 52,027,000 and 54 average positions of

employment.

—

51,193,000 and a decrease of 6 average positions are for
workload in the check issuance area.

—

5490,000 is to provide for ADP and capital equipment
acquisitions.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

GFO/ Salaries and Expenses (continued)
$486,000 and 10 average positions are for the check payment
and reconciliation program.

$229,000 and 5 average positions are for other program
increases.
$1/539,000 is required to maintain current staff levels —
within-grades, space rental, annualization of postage
increases and full-year costs of programs authorized for
part of 1980.

Reductions of $5,964,000 and 63 average positions for
management savings, non-recurring one-time costs and
program reductions.
Payments to Guam, Virgin Islands and American Samoa - $-2,000,000

A net reduction of $2,000,000 for one-time payments occuring in 1980.
Government Losses in Shipment - $-200,000.
A net reduction of $200,000 for one-time payment occuring
in 1980.

Bureau of Alcohol, Tobacco and Firearms - $144,844,000

A reduction of $3,521,000 and 41 average positions for
program reductions and non-recurring costs and savings.
U.S. Customs Service - $465,700,000

—

Net increase of $1,361,000 and a reduction of 114 average
positions of employment.

$1,450,000 is for additional vehicles and enforcement
equipment.
$386,000 and 8 average positions are for the regulatory
audit program.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

6
U.S. Customs Service (continued)
$525,000 and 9 average positions are for safety and health
programs.

An increase of $11,467,000 and 29 average positions are to
maintain current levels of operation — within-grade pro
motions, grade to grade promotions, price increases,
annualization of pay increases, space increases, etc.

—

A reduction of $12,467,000 and 160 average positions are
for non-recurring costs and savings, productivity savings,
and program reductions.

Bureau of the Mint
Salaries and Expenses - $60,956,000
Net increase for Salaries and Expenses, $1,599,000 and a
decrease of 12 average positions.

$205,000 and 10 average positions are for increased workload
$4,323,000 is required to maintain current levels of opera
tion — within-grade promotions, annualization of pay
increases, FTS costs, etc.
A reduction of $2,929,000 and 22 average positions is for
non-recurring costs and savings and program reductions.
Bureau of the Public Debt - $196,625,000

A reduction of $13,015,000 and a reduction of 39 average
positions of employment.
$9,671,000 is for compensation of issuing and paying agents
for redemption and sale of savings bonds and reimbursement
to Federal Reserve Banks for services.

$341,000 is for other program increases.
$2,413,000 to maintain current levels of operations, includ
ing such major items as within-grade promotions, annualiza
tion of pay increases, space rental costs, annualization of
postage, etc.

A reduction of $25,445,000 and 39 average positions for non
recurring costs, and management savings.
April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1
Internal Revenue Service - $2,359,111,000

Salaries and Expenses - $157,762,000

—

A net increase of $7,782,000 and 108 average positions of
employment.

$3,152,000 and 63 average positions are for increased workload
$6,678,000 and 60 average positions are to maintain current
levels of operations — within-grade promotions, annualiza
tion of pay increases, space rental costs, etc.

A reduction of $2,048,000 and 15 average positions covering
non-recurring costs and savings and program reductions.

Taxpayer Service and Returns Processing - $811,744,000
—

Net increase of $8,996,000 and a decrease of 854 average
positions of employment.

$8,202,000 and 4 average positions for processing addi
tional tax returns.

$5,750,000 and 302 average positions are for matching
additional information returns and related follow-up col
lections .
$5,081,000 is for site preparation at several service
centers in support of the ADP Equipment Replacement Program.

—

A reduction of $23,893,000 and 348 average positions is
for non-recurring costs and savings and program reductions.

Examinations and Appeals - $852,925,000
—

A net increase of $15,609,000 and a decrease of 75 average
positions of employment.

An increase of $4,069,000 for examination of additional tax
returns.

—

An increae of $4,527,000 and 233 average positions for
examinations of tax returns derived from the information
returns program.

April 10, 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

IRS, Examinations and Appeals (continued)
,
increase of 519,103,000 and a reduction of 63 average
oositions are to maintain current levels of operations
includina such items as within-grade promotions, grade
r-grade 'promotions , annualization of pay increases, etc

A reduction of $12,090,000 and 245 average posiLtions is
for non-recurring costs and savings and productive
savings.

Investigations and Collections - 5536,680,000

A net increase of 535,259,000 and 1,664 average positions
of employment.
—

56,963,000 and 330 average positions are for collection of
delinquent taxes related to additional workloa .

c-i n cqo noo and 454 average positions are for follow-up
investigations derived from ?he information returns program.

—

$2,980,000 and 135 average positions are for an increased

effort to collect unpaid accounts.
—

521,002,000 and 815 average positions to maintain current
levels of operation — within-grade promotions, grade-tograde promotions, space rental costs, annualization of pay
increases and programs authorized for part ot FY 1980 etc

A reduction of $6,278,000 and 70 average positions cover
ing non-recurring costs and savings and program reduction .
Payment where Energy Credit Exceeds Tax Liability - $-1,900,000

—

Net decrease of $1,900,000 for one-time non-recurring costs
in 1980 (this account is proposed as an indefinite in 198.)

U.S. Secret Service - $157,041,000

—

Net decrease is $20,609,000 with no change proposed in

average positions.

5350,000 is for technical security equipment.
S2 339 000 is for those costs required to maintain current
levels of operation - within-grade promotions, grade-tograde promotions, annualization of pay, space rental,

—

A reduction of $23,298,000 is for no?-re=^ingequipment_
costs and program reductions primarily related to the can
didate and nominee protection program in the 1980 budget.

April 10/ 1980

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Full text of Statements and Speeches of G. William Miller : Statement for the Senate Subcommittee on Appropriations

FRASER