TREASURY, POSTAL SERVICE, AND HEARINGS BEFORE A SUBCOMMITTEE OF THE NINETY-SECOND CONGRESS FIRST SESSION ON H.R. 9271 AN ACT MAKING APPROPRIATIONS FOR THE TREASURY 62-206 O Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1971 DEPARTMENT OF THE TREASURY, POST OFFICE, AND GENERAL GOVERNMENT APPROPRIATIONS FOR FISCAL YEAR 1972 TUESDAY, APRIL 27, 1971 SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, U.S. SENATE, Washington, D.C. The subcommittee met at 10 a.m., in room 1224, New Senate Office Building, Hon. Joseph M. Montoya (chairman) presiding. Present: Senators Montoya, Boggs, and Allott. DEPARTMENT OF THE TREASURY STATEMENT OF HON. JOHN B. CONNALLY, SECRETARY OF THE TREASURY ACCOMPANIED BY: HON. EUGENE T. ROSSIDES, ASSISTANT SECRETARY OF THE TREASURY ERNEST C. BETTS, JR., ASSISTANT SECRETARY FOR ADMINISTRATION, DEPARTMENT OF THE TREASURY BENJAMIN CAPLAN, DIRECTOR, OFFICE OF PLANNING AND PROGRAM EVALUATION NORMAN E. SIMS, JR., DIRECTOR, OFFICE OF BUDGET AND FINANCE SUBCOMMITTEE PROCEDURE Senator MONTOYA. The Subcommittee on Treasury, Post Office, and General Government Appropriations will be in order. Today, the subcommittee will commence hearings on the regular fiscal year 1972 appropriation request items contained in the President's budget that come under the jurisdiction of this committee. This being my first year as chairman of this subcommittee, I especially want to extend to each of you a warm welcome at this time. For the information of the witnesses who will be appearing before us, I wish to announce that we intend to take up the items in bill order, starting with Title I and proceeding from there. Inasmuch as the committee is meeting before the House reports out a bill, but while we have ample time, it is the intent of the Chair to conduct thorough, meaningful, and fruitful hearings that will assist us in marking up the bill in a fair and objective manner. Mr. Secretary, Will we are very happy to have you here this morning. you please identify your associates for the record, and then proceed with your statement. EXPRESSION OF APPRECIATION OF SUBCOMMITTEE COOPERATION Secretary CONNALLY. Thank you, Mr. Chairman. First, to you and to the gentlemen of the committee, may I express my appreciation for the opportunity to be here this morning. I feel particularly delighted that being new in my position, that I can appear, Mr. Chairman, when you take over for the first time as the chairman of this subcommittee. I know the Treasury feels very strongly that this Appropriations Committee and the subcommittees have always been very understanding and extremely helpful to the Treasury in pursuit of its efforts, so I am very privileged to appear this morning to speak on behalf of the Treasury, and before I proceed further, I would like to present to the subcommittee the gentlemen with me. INTRODUCTION OF ASSOCIATES On my left is Mr. Eugene T. Rossides, Assistant Secretary of the Treasury. On my immediate right, Mr. Ernest C. Betts, Jr., Assistant Secretary for Administration of the Treasury. Immediately next to him is Mr. Norman E. Sims, Jr., Director of the Office of Budget and Finance, and on his right is Doctor Benjamin Caplan, Director of the Office of Planning and Program Evaluation. Now, if I may, sir, I will continue with my statement. DEDICATION AND PROFICIENCY OF DEPARTMENT STAFF Secretary CONNALLY. I am pleased to participate with you in the review of the appropriation requests of the Department of the Treasury for fiscal year 1972 following my appearance before the full committee on the overall Government budget. Although my acquaintance with the Department's operations is still limited, I have now been briefed on a great many of its activities, problems, and opportunities. I have found the staff dedicated and informed and I can appreciate the Department's reputation for being an effective, cost-conscious performer. To say that I know everything there is to know about the Treasury and its operations, I think would be a gross mis-statement of the fact, but I have learned this much about this great Department, and that is that the Treasury Department has a staff that is extremely dedicated, extremely well informed, and I think they justly deserve the reputation they have for being a very effective cost conscious Department of Government. Now, as you have just announced, Mr. Chairman, you will of course examine programs with each of the heads of the Bureaus of the Treasury in careful detail following this review with me. If I may then, I would like to just highlight the activities of the Department which give rise to the budget increase we are requesting for the new year. BUDGET REQUEST AND 1971 APPROPRIATION Treasury requests for appropriations for fiscal year 1972 departmental operations total $1,502,764,000. This is an increase of approximately $194 million over the proposed authorized level for 1971 as reflected in the President's budget for 1972. This is a substantial increase. We are well aware of that fact, but I think when you have listened to all of the Bureau heads, in addition to the testimony which I will give this morning, I think it is apparent why the increase is being made. Operations increases proposed to meet new workload and responsibilities total $80 million; equipment and capital improvement increases total $75 million; the cost of maintaining in 1972 the levels of employment and operations attained in 1971 is $57 million. The increases are offset in part by $18 million of costs of 1971 which will not recur in 1972 and by management improvements savings. Capital and equipment items are unusually large this year, and I will speak of these in a moment. Maintenance of current employment levels is also larger than usual reflecting the continuation on a full-year basis in 1972 of our regular programs, plus such recent additions as explosives control, increased supervision of tax-exempt organizations, and acceleration of antidumping and countervailing duty investigations. AUTHORIZED LEVEL, 1971 The 1971 authorized level with which we are comparing the 1972 requests is the 1971 appropriation increased by proposed supplemental appropriations for pay and program requirements of 1971 as reflected in the President's budget for 1972. You will recall similar comparisons made in previous years. I have for the record table I showing the derivation of the proposed author ized level for 1971. (The table follows:) TABLE 1 DERIVATION OF "PROPOSED AUTHORIZED LEVEL FOR 1971" 1971 appropriations (Public Law 91-422). Supplemental appropriations enacted by Congress: Subtotal_____ Total appropriations enacted by Congress Proposed 1971 supplemental appropriations as stated in the President's budget for fiscal year 1972: Increased classified pay costs. Wage board pay costs-- Program increase: Bureau of the Public Debt.--. Subtotal.... Proposed authorized level for 1971... $1, 239, 858, 000 500,000 118, 000 5, 026, 000 5, 644, 000 1, 245, 502, 000 59, 629, 000 301, 000 3, 000, 000 62, 930, 000 1, 308, 432, 000 |