FUNDS WITHHELD FROM 1971 EXPENDITURE

Secretary RICHARDSON. May I comment briefly on the first point above? There is really a very small amount of money appropriated for 1971 that we are not planning to spend at all. Out of $20 billion in Federal funds appropriated for all HEW programs for 1971, only $21 million is being withheld from expenditure. Another $60 million will be carried over to 1972. We will provide you at this point in the record with a breakdown showing just what items are involved in

these two totals.

Mr. SHRIVER. Would that be voluminous? Could you give us an idea of it now? We won't see this printed record for a long time.

Secretary RICHARDSON. Yes. In fact, we could distribute this to you this afternoon.

The total of program cuts, $21,090,000, consists of $5,425,000 under the college library resources program; a series of items under the National Institutes of Health totaling $15,665,000, and including varying amounts for environmental health sciences, child health, eye research, allergy and infectious diseases, neurological diseases and stroke, arthritis and metabolic diseases, and dental research. Those are all amounts appropriated which it is not presently proposed to spend. In deferrals there is $10 million for school assistance in federally affected areas. There is $15 million in construction funds for health educational, research, and library facilities, and $34,500,000 in regional medical programs.

Mr. MILLER. Over 99 percent of the appropriation is being spent. Mr. SHRIVER. How about Hill-Burton?

Mr. MILLER. That will all be allocated to the States.

DHEW EMPLOYMENT 1968-72

Mr. MICHEL. Mr. Secretary, in conjunction with that table the chairman asked be placed in the record with respect to employment from 1968 through 1972, would you also, in conjunction with that table, earmark those numbers that have been taken on board as a result of pieces of legislation enacted since 1967. In other words, those which require you to perform additional duties and responsibilities for which additional people have had to be taken on board to implement action taken by the Congress.

Secretary RICHARDSON. Yes; we will be glad to do that. The additions that will be attributable to congressional action that we will show you in response to your request, Congressman Michel, are offset to a substantial degree in other cases by reductions in personnel so that the total increases have been relatively low in recent years. The total endof-year employment for 1970 was 100,220; for 1971, 102,905; and we are showing as the total projected for 1972, 99,612. This includes the projected reduction for Public Health Service hospitals.

In the case of the Social Security Administration, although it has had continuing increases in workload, our total projected employment for fiscal year 1972 is the same as for 1971.

Mr. CARDWELL. There is an interesting phenomenon if you examine the HEW employment record and its employment budget over the last 3 or 4 years. You will find that at one time the Congress,

through the budget process, approved an employment level as high as 107,000. Yet actual employment in this particular budget is under 100,000. So the authority to employ has not been fully exercised and in fact there is a net decline predicted.

Mr. SMITH. Where are those?

Mr. CARDWELL. There are a number of authorized positions which we have never filled. There is a very significant spread across the Department.

Now, a large share of this difference is the result of a very deliberate effort on our part to review manpower utilization and to hold down employment within the Department. This is a part of a comprehensive effort on the part of the administration generally to hold down employment.

Mr. MICHEL. What is that administrative percentage in social security? Years ago we used to say it was one of the best administered programs in Government, something like 3 percent.

Mr. CARDWELL. About 2 percent of the total budget. Much lower than the percentage you find for the insurance industry generally.

HEW ORGANIZATION CHART

Mr. MICHEL. Will you place in the record at this time a new organization chart for the Department of HEW? I assume you have an updated one?

Secreary RICHARDSON. Yes.

Mr. MICHEL. Could we have also with that the names of the individuals who fill the particular slots and if they are vacant a notation to the effect that they are vacant or that the individual is serving in an acting capacity.

Secretary RICHARDSON. We would be glad to do that. (The information follows:)

UNFILLED POSITIONS IN UPPER ECHELON

Mr. MICHEL. Do we have yet on board an Assistant Secretary for Legislative Affairs?

Secretary RICHARDSON. No. I have submitted a recommendation to the President which is going through the usual process. I hope shortly that it will be announced.

Mr. MICHEL. Is that the only unfilled significant spot in the upper echelon that is unfilled at the moment?

Secretary RICHARDSON. Yes. It is the only unfilled one but I should tell you while we are on the subject that I have recommended to the President the creation of the position of Assistant Secretary for Public Affairs and have submitted to him a recommendation for that position. That would represent, in effect, a replacement for the present Director of the Office of Public Information. Those are the most significant personnel changes that are presently pending.

Mr. CARDWELL. The filling of those two positions would fill all of the authorized Assistant Secretaryships?

Secretary RICHARDSON. The Assistant Secretary's position that I recommended be filled by an Assistant Secretary for Public Affairs was the position allocated to education. I had proposed shortly after coming to HEW to fill the Commissionership of Education with the understanding that that would be a line responsibility, a line job reporting directly to me, and to fill the Assistant Secretaryship with a representative of higher education, exercising essentially a staff role. The individual I had in mind for the staff role in higher education turned out not to be available when his Board of Trustees declined to give him a leave of absence.

In the meantime, Commissioner Marland and I have concluded that it clarifies responsibility for education in the Department not to have two individuals in educational positions.

That has made the Assistant Secretaryship available.
Mr. FLOOD. We will adjourn until 2 o'clock Monday.

MONDAY, FEBRUARY 22, 1971.

Mr. FLOOD. I think at the end of the last session, Mr. Michel was questioning the witness, the Secretary of the Department of Health, Education and Welfare.

Continue, Mr. Michel.

PROPOSED HEALTH INITIATIVES NOT IN THE BUDGET

Mr. MICHEL. Mr. Secretary, I am not sure whether thus far in the hearing we have determined for sure what the total amount of requests might be in supplementals for proposed legislation that is not included in this overall budget presentation which you are testifying in support of. Is there a figure that we can tie to which would encompass all those proposals, particularly in the health field, but also whatever other legislative proposals you are thinking seriously about?

Secretary RICHARDSON. Mr. Cardwell has that figure. I cannot guarantee there will not be any others, but the only area within

which new legislative proposals have been developed but not reflected in the budget has been in health. These are all specifically identifiable.

The total amount is $84 million. The total amount already in the budget for new health initiatives in the fiscal year is $269 million. The total for both already budgeted and new money is $353.4 million. Your question is addressed really to items not already in the budget. That total is $84 million.

Do you want that broken down?

Mr. MICHEL. Do it for the record and then expand on it in any way you wish. I want something to tie to in what might be an overall expenditure level.

(Information requested follows:)

Funding requirements of health initiatives not in the 1972 budget as transmitted on January 29, 1971

Mr. MICHEL. What other big supplementals would you have in the offing besides public assistance? I would suspect we will have a supplemental in the works here before the end of the current fiscal year for that item.

Secretary RICHARDSON. There are three items heretofore proposed. Public assistance of $1,047 million is one.

Mr. MICHEL. That will be a supplemental request for the current fiscal year, $1,047 million?

Mr. CARDWELL. That is right.

Secretary RICHARDSON. It is a shockingly high amount. Of course, it reflects the very much more rapid increase in public welfare expenditures by States during the past year than they had estimated when we originally sought the 1971 appropriation.

Mr. MICHEL. This last weekend I was in New York. I saw an article in the New York Times which said that in December of 1970 welfare cases increased by just a shade under 18,000. It disclosed that their estimates were for an increase of 5,500. That brings the total to more than 1,165,000 people on welfare in New York City alone.

My question goes back to that wide disparity between what they estimated, that 5,500 figure, and the 18,000. That is just for one city. You recall last year I offered a motion to recommit as the administration had requested to limit in this current fiscal year expenditures to 110 percent of that spent in the previous fiscal year. This is for administrative costs of public assistance. You are requesting that kind of limitation again in this budget, are you not?

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