DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATIONS, 1964 THURSDAY, MARCH 14, 1963 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met, pursuant to recess, at 10:30 a.m., in room 1223, New Senate Office Building, Hon. Carl Hayden (chairman of the committee) presiding. Present: Chairman Hayden and Senator Byrd. DEPARTMENT OF THE INTERIOR TRANSITIONAL GRANTS FOR ALASKA STATEMENT OF THE CHAIRMAN Chairman HAYDEN. The committee will be in order. We will take up the related agencies in the Interior Department appropriations bill this morning. First, we will consider transitional grants for Alaska. The Alaska Omnibus Act provides that the United States will pay to Alaska certain grants to facilitate the transition from a territory to a State, and to assist the State in assuming functions which hitherto were performed by the Federal Government. This is the last year during which such a payment will be made. There is $3 million required, and the statement in support of the request for this amount will be printed in the record. (The justification referred to follows:) Justification FUNDS APPROPRIATED TO THE PRESIDENT TRANSITIONAL GRANTS TO ALASKA This appropriation is the last of five annual appropriations authorized by section 44(a) of the Alaska Omnibus Act, Public Law 86-70. It is requested to enable the President to make the final grants to the State of Alaska to facilitate an orderly transition from territorial status to statehood and to assist the State in financing, for a 5-year transitional period, the assumption of functions hitherto performed by the Federal Government. Section 44(b) of the Alaska Omnib Act also provides that portions of the apropriation may be allocated to Federal agencies to continue interim services in Alaska but only upon a request from the State that such services be continued. One such allocation of the appropriation for 1964 may be requested in the amount of up to $593,000 to provide for the operation and maintenance of intermediate airports. The grants to Alaska are unearmarked and available as a general supplement to the State's financial resources. However, the State legislature has taken action to limit expenditures of the transitional grant funds to those programs and functions which the State assumed from the Federal Government. Four years ago when the transitional grants were begun, Alaska presented many unique and difficult problems not previously encountered when new States were admitted into the Union. Transitional problems were greatly complicated by the fact that the Federal Government performed functions in Alaska which normally are the responsibility of State and local governments. The Federal Government, at the time of Alaska's admission to statehood, was responsible for construction and maintenance of highways, operation of many commercial airports, administration of justice, conservation and management of fish and wildlife resources, and other services and facilities in Alaska which are elsewhere furnished by local agencies. For this reason, President Eisenhower recommended in his 1960 budget message that, in the longrun interest of both the State and the Nation, "the Federal Government should not continue special programs in Alaska which, in other States, are the responsibility of State and local governments or of private enterprise.' We are pleased to report that, with the help of the transitional grants, Alaska has taken over responsibility for the major Federal programs which properly should be carried out at the State and local government level. We believe that the grant program has been successful in accomplishing its purpose and that it can be concluded as originally proposed with the 1964 grant. The Alaska Omnibus Act, in section 21, authorized the transfer to Alaska of responsibility for highway construction and maintenance formerly vested in the Bureau of Public Roads, and, in section 35, authorized the transfer to Alaska of the Anchorage and Fairbanks airports operated by the Federal Aviation Agency. Those transfers have been effected. Approximately 17 intermediate and primary airports were to be transferred to the State under authority of the Surplus Property Act of 1944, as amended. The Federal Aviation Agency is continuing to work with the State to attempt to complete the transfer of some or all of those airports to the State. On January 1, 1960, the State assumed responsibility for the management of its fish and wildlife resources pursuant to section 6 of the Alaska Statehood Act. Action was taken to establish normal State judicial and law-enforcement agencies and to transfer to Alaska the Federal responsibilities in the area pursuant to section 18 of the Statehood Act. The Federal grants for Alaska mental health and the special program for construction of recreation facilities in Alaska were terminated by sections 31 and 38 of the Alaska Omnibus Act, respectively. Former appropriations for the general health grants to Alaska were not continued in 1960. Without financial assistance, Alaska would have been unable to assume responsibility in a prompt and orderly manner for the Federal functions and services which have been terminated. Some time would necessarily have had to elapse before Alaska could either increase its revenues from existing sources or benefit fully from the revenues to be derived from public land grants and other resources made available to the State by the Statehood Act. If the Federal Government had not provided assistance to Alaska through the transitional grants, it would have been faced with the undesirable alternative of continuing the Federal programs and Federal financing for an indefinite period. President Eisenhower recommended, therefore, that "the Federal Government should provide such financial assistance as is necessary to facilitate transfer to the State of such programs as highway construction and maintenance, airport operations, and public health services." Section 44 (a) of the Alaska Omnibus Act authorized transitional grants to the State in the amount of $10,500,000 for fiscal year 1960; $6 million each for fiscal years 1961 and 1962; and $3 million each for fiscal years 1963 and 1964. The requested amount of the appropriation for 1964, $3 million, is based in part on the costs which would have been borne by the Federal Government if Alaska had remained a territory, together with certain additional funds authorized by the Congress to cover the costs improving the airports and other facilities taken over by Alaska. The following table provides a comparison between the amounts of the proposed transitional grant to Alaska for fiscal year 1964 and the amount of anticipated Federal expenditures if Alaska had remained a territory. Federal expenditures in 1964 if Alaska remained a territory Operation and maintenance costs, Anchorage and Fairbanks airports---- $845 Subtotal_. Less airport revenues-. Total___. Proposed transitional grant.... 593 900 638 2,976 -1, 215 1, 761 3, 000 Section 44 of the Alaska Omnibus Act (73 Stat. 151) authorizes grants to the State of Alaska for a 5-year period ending June 30, 1964, to facilitate assumption by the State of responsibilities hitherto performed in Alaska by the Federal Government. These funds are to enable the President (a) to make grants to the State to assist in financing functions transferred from the Federal Government, and (b) to finance continued Federal operations for an interim period when the State requests a delay in transfer of functions. In June 1959, the State requested that the Federal Government continue operation of 17 primary and intermediate airports, and allocations were made to the Federal Aviation Agency for this purpose. The $3 million requested for 1964 is the maximum authorized by law. PRESENTATION OF ESTIMATE Chairman HAYDEN. A representative of the Bureau of the Budget customarily presents this estimate. However, he and others who might appear in his stead are out of the country. This is a requirement of law and heretofore there have been no questions on it. the So, without objection, the committee will note the request and forgo appearance of a Budget representative. COMMISSION OF FINE ARTS STATEMENTS OF DAVID E. FINLEY, CHAIRMAN; L. R. WILSON, SECRETARY; AND DALE L. ROTHROCK, FINANCE OFFICER BUDGET ESTIMATE, 1964 Chairman HAYDEN. The Commission of Fine Arts estimate for fiscal year 1964 is $91,000, an increase of $8,000 over the appropriation for fiscal year 1963. The justification will be placed in the record. (The justification referred to follows:) To provide for increased pay costs for fiscal year 1963 position---+$3,000 Increase to provide for position promotions, part-time employment, The estimate of funds needed to operate the Commission of Fine Arts in fiscal year 1964 is $91,000, or an increase of $8,000 over the sum available in fiscal year 1963. The increases for 1964 would provide funds for increased travel costs of the members, increase in operating expenses, in-grade promotions, employment of temporary summer help, and additional reproduction costs for a |