(Statement of Gen. Wade H. Haislip follows:) STATEMENT OF GEN. WADE H. HAISLIP, Governor of THE U.S. SOLDIERS' HOME In order to cover pay raises granted subsequent to congressional action on the 1962 annual budget, a $144,000 increase in the limitation on the current appropriation is required. This supplemental, if approved, will be taken from the Soldiers' Home permanent fund (trust fund), not from the general revenues of the Treasury. The U.S. Soldiers' Home adheres to wage rates promulgated by the Army-Air Force wage board. That board established increased rates in December 1960, and again in December 1961. The total estimated cost of these pay raises is distributed as follows: Rates made effective in December 1960 (payable for 12 months in fiscal year 1962)___ Rates made effective in December 1961 (payable for approximately 6 months in fiscal year 1962) Total of supplemental... - - - $118, 000 26, 000 144, 000 Computation of costs is for the employment level carried in the current year appropriation, and was accomplished by comparing payrolls paid before and after the pay raises. The attempt to absorb any or all of this deficit was studied, but ruled out by the home at this time. The payment of salaries and employee benefits uses about 73 percent of the home's operating money. An additional 23 percent of the home's annual appropriation is required for certain continuing activities which vary little from year to year. This leaves only about 4 percent of the annual funds from which a certain portion might be made available for personnel compensation, but such action would affect primarily essential maintenance activities of the home with little effect on the total amount of the supplemental funds required. During the course of the House subcommittee hearings on the home's 1962 supplemental budget, it became apparent that the percentage breakdown of operating costs included in the statement and on page 3 of the supplemental budget submission were in error. Page 3 of the budget to the Senate subcommittee and this statement accompanying it have been corrected. JUSTIFICATION OF NEED FOR SUPPLEMENTAL APPROPRIATION 1. The U.S. Soldiers' Home adheres to wage rates promulgated by the ArmyAir Force wage board. That board established increased rates in December 1960 and again in December 1961. The total cost during 1962 of these two pay raises is estimated to be $144,000, including $10,000 for the home's contribution to employee benefit funds. 2. Computation of the additional cost for the two pay increases was accomplished by comparing actual payrolls paid before and after the pay raises. Additional funds are required this year since payments must be made this year. All pay increases to be financed were granted subsequent to congressional action on the current year annual estimates. 3. The partial or complete absorption of this deficit was studied, but ruled out at this time. The payment of salaries and employee benefits uses about 73 percent of home operating money. Approximately 23 percent of the home's annual appropriation is earmarked for certain recurring items which vary only slightly. This leaves only about 4 percent for all other activities. Any reduction of funds in this category will result in the reduction or elimination of some essential activity of the home. 4. The proposed increase in limitation will provide increases for employees as authorized in the current year budget. The amount of the latest payroll which contains the two pay increases, covers 1,035 employees, and is $4,100,000 on a per annum basis. LEGISLATIVE BRANCH JOINT ECONOMIC COMMITTEE STATEMENT OF HON. CLAIBORNE PELL, A U.S. SENATOR FROM THE STATE OF RHODE ISLAND, ACCOMPANIED BY JOHN R. STARK, CLERK OF THE JOINT ECONOMIC COMMITTEE SUPPLEMENTAL APPROPRIATION REQUEST Senator HOLLAND. The legislative branch appropriation is the next item. Senator Pastore. Senator PASTORE. Thank you. The committee has received a letter dated March 26, 1962, from Hon. Wright Patman, chairman of the Joint Economic Committee, requesting a supplemental appropriation for fiscal year 1962, in the amount of $20,000. The letter and justification will be included in the record. March 28, 1962. Hon. JOHN O. PASTORE, DEAR MR. CHAIRMAN: Submitted herewith is a request for a supplemental appropriation in the amount of $20,000 to defray the salary cost of minority staff added to the committee, and to permit continuation of two studies of major importance during the remainder of fiscal 1962. The addition of a staff economist and secretary at the behest of the minority add approximately $6,500 to the 1962 budget. The professional staff member has been on the payroll since February 23, and a secretary is now being recruited. The two studies would represent a net addition of $13,500 over the budget as originally programed. One of the proposed studies is a further and more intensive analysis of the international balance of payments by our subcommittee which made the pioneering study of this subject last year. As you may know, this subcommittee (under the chairmanship of Mr. Reuss) made a number of original findings and recommendations last year, including the proposed supplementary increases in the IMF's lending authority, which have become official policy of the U.S. Government. In spite of this progress, however, the deficit in our international payments continues to be a pressing one and prompt activity by the subcommittee warrants high priority. A second study is the revision and updating of the committee's 1957 study of productivity, prices and incomes. This analysis has been of extensive use to industry, labor, Government, and universities, and because a new round of wage negotiations seems to be in the offing, it is becoming increasingly in demand. Unfortunately, its value has diminished for the reason that it is becoming outdated. Bringing this study up to date will require extensive statistical work as well as consultative services from specialists outside the Government. The committee's 1962 appropriation contained a modest allowance for this study, which has been devoted to initial exploratory and statistical work. The revisions needed to restore the validity of this study are clearly indicated and it now appears prudent to avoid further delay in progressing with the work. Also The attached table shows a breakdown by activity of the budget for the 1962 fiscal year; the cost of the aforementioned items is included in the item entitled "Current Studies." It also shows our estimated 1963 expenditures. attached is a breakdown of costs for the balance of payments and productivity studies. The 1963 estimated expenditures include an anticipated supplemental of $93,670. Of this amount, it is currently estimated that approximately $35,000 will represent the 1963 cost of the aforementioned projects: the balance will be allocated to a number of special studies including, but not limited to, the study of the variability of private investment in plant and equipment, analysis of inventory movements, accumulation and liquidation, and the study of the Federal budget as an economic document. The committee will submit in the near future a detailed analysis of the proposed projects. We will appreciate your favorable action on this request. Sincerely yours, Study of balance of payments and related problems: Personnel: 247, 555 12,000 259, 555 20, 000 279, 555 $3,250 Travel expenses and per diem on trips to Washington to consult with subcommittee chairman and staff. 3,000 1, 050 Stationery and typing.. 300 Charts, telephone, and incidentals. Hearings: 5 days; travel expenses and fees for 15 witnesses_ 300 1,500 GENERAL STATEMENT Senator PASTORE. My distinguished colleague, Senator Pell, will testify in behalf of the Joint Committee with relation to this item. Senator PELL. It is a pleasure to appear before the distinguished Senior Senator from Rhode Island. The Chairman of the Joint Economic Committee, the Honorable Wright Patman, is not available today and, in the absence of Senator Douglas, the Vice Chairman, he has asked me to testify on the request, which I am happy to do. One-third of the $20,000 is for an additional economist and secretary, and the other two-thirds is for further studies in the fields of productivity and the international balance of payments. STUDIES PROPOSED In the field of productivity, the present study we have is about 3 or 4 years old, and with the prospective impact of the President's trade expansion program, there will be added need for revised productivity study. Apart from that, it is widely used in labor-management negotiations. With respect to the balance of payments study, as you know the drain is still in the wrong direction. The Joint Economic Committee has been concerned about this problem and has devoted some time and study to it, as indicated in Chairman Patman's letter. But there is a pressing need to continue these studies. Senator SALTONSTALL. How much will those take, Senator Pell? Senator PELL. These studies together will require the sum of $13,500 for the remainder of the current fiscal year. NEW POSITION Senator SALTONSTALL. And the balance is for a new man? Senator PELL. For a new economist, actually a minority staff economist, and secretary, put on at the request of Senator Bush. The economist has been engaged since February. He has been working since February. Senator SALTONSTALL. For the minority? Senator PELL. Yes, sir. Senator SALTONSTALL. So that two-thirds of its is to bring those reports up to date and a third of it is for this man who is working for the minority? Senator PELL. Yes. I think the record should show that, in fact, there is no basis for any allegation that the minority were previously unrepresented. The recent addition of a minority staff man was done as a courtesy to Senator Bush. In fact, five members of the present staff were engaged by Senator Taft when he was Chairman of the Joint Economic Committee. PURPOSE OF REPORTS Senator SALTONSTALL. May I ask this further question: These reports that you are issuing, will bring up to date, in your opinion, Senator Pell, the reports which have already been made, and the committee is not attempting a new study? Senator PELL. The productivity study is to be brought up to date. The balance-of-payments study, as I understand, is to be enlarged; it is not a new study, but an enlargement in the scope of the present study. Senator PASTORE. That is all. Senator SALTONSTALL. That is all. Senator HOLLAND. Thank you very much. ARCHITECT OF THE CAPITOL STATEMENT OF J. GEORGE STEWART, ARCHITECT OF THE CAPITOL SUPPLEMENTAL REQUEST Senator PASTORE. Next we have the Architect of the Capitol. The Architect of the Capitol has requested a supplemental appropriation in the amount of $15,000 for Senate Office Buildings. The justification will be included in the record for this item and for the other items requested by the Architect for the Capitol Buildings, the House Office Building and the Library Buildings and Grounds. (The information referred to follows:) WAGE-BOARD INCREASES, PUBLIC LAW 763, 83D CONGRESS Under the provisions of Public Law 763, 83d Congress, 904 laborers and mechanics on payrolls in the legislative branch under the Architect of the Capitol and the Botanic Garden, carried in the annual Legislative Branch Appropriation Act, are compensated on a wage-board, prevailing-rate basis. Public Law 763 provides that the compensation of such employees shall be fixed and adjusted from time to time as nearly as is consistent with the public interest in accordance with prevailing rates. A general survey of Government and industrial employees' wages in the Washinton metropolitan area has recently been conducted and completed by the Army, Air Force, Navy, General Services Administration, and other large agencies. As a result of this survey, new prevailing rates have been established for the positions held by wage-board employees under the Architect of the Capitol. The Architect was notified of the new rates on November 24, 1961, and the new rates were put into effect, December 10, 1961. Under the provisions of Public Law 85-872, 85th Congress, approved September 2, 1958, it is mandatory that wageboard increases be put into effect not later than the first day of the first pay period which begins on or after the 20th day, excluding Saturdays and Sundays, following the date on which the Architect receives the data collected in the wage survey and necessary for the granting of increases. The estimated total cost of wage-board increases covering the 904 wage-board employees under the Architect of the Capitol and the Botanic Garden is $104,500 on a full-year basis. The estimated cost on a part-year basis for the fiscal year 1962, covering the period December 10, 1961, to June 30, 1962, is $58,300. Of the estimated cost of $58,300 for the fiscal year 1962, it is proposed to absorb $22,300 through lapse and other savings-or 38 percent of the total cost-necessitating supplemental appropriations for the fiscal year 1962 totaling $36,000. As a result of this absorption, no supplemental appropriations are required for "Capitol Grounds," "Legislative Garage," "Capitol Power Plant," and "Botanic Garden." Supplemental appropriations are required for 1962 for appropriation units, as follows: |