1 Includes capital outlay for equipment: 1960, $100,832,000; 1961, $112,823,000; 1962, $118,793,000.

This book contains the budget estimates for the appropriation "Operating expenses" for fiscal year 1962. The estimates provide for total obligations of $2,454,043,000 to be funded by: (1) a new appropriation of $2,359,400,000; (2) the utilization of an unobligated balance of $66,943,000 estimated to be available at the end of the fiscal year 1961; and (3) an estimated $27,700,000 to be received as revenues from non-Federal sources during the fiscal year.

Estimates of costs and obligations

The budget estimates for this appropriation are stated in terms of accrued costs for each of the AEC's 12 operating programs. "Accrued costs" denotes the actual application of labor, materials, equipment, and services to the program during the year, but excludes depreciation of facilities used in the operations. The AEC does, however, maintain accounts for depreciation for the purpose of determining total costs of production and for use in establishing prices for services rendered or products sold to others.

The costs of operation are reconciled to the total obligations to be incurred during the year by estimating the buildup or decrease during the year of the resources that are to be applied to future years' operations. These estimates are included in the section titled, "Increase or Decrease (-) in Selected Resources" and include inventories and undelivered orders.

From total obligations are deducted the revenues estimated to be obtained from non-Federal sources in order to arrive at the amount of appropriations required. These revenues are obtained from AEC-owned community and housing operations, from the sale of products, from services performed for others, and from miscellaneous sources. These revenues are identified and summarized under the tab "Revenues applied."

The following table summarizes the accrued costs for each program, and the total obligations for fiscal year 1960, 1961, and 1962. The detailed justifications, beginning on page 13, present the programs in the same order as they appear on this summary table.

Summary of accrued operating costs by program reconciled to net obligations

The financing of the estimated total obligations of $2,454,043,000 proposed in the budget estimates for fiscal year 1962, together with comparable data for fiscal years 1960 and 1961, is summarized in the following table:

The unobligated balance of $66.9 million estimated to be available at the end of fiscal year 1961 includes $29.7 million representing that part of the difference between the actual unobligated balance on June 30, 1960, and the estimate included in the 1961 budget estimates which is not required in fiscal year 1961 for attainment of the specific objectives for which it was planned in 1960, and estimated savings in fiscal year 1961 of $37.2 million representing mainly higher revenues than anticipated in the 1961 budget, and reductions in the weapons and aircraft nuclear propulsion programs in keeping with the projected 1962 budget levels.

Expenditures for operating expenses

Expenditures from the "Operating expenses" appropriation for fiscal year 1962 are estimated at $2,380 million, a decrease of $35 million from estimated expenditures of $2,415 million in fiscal year 1961. Actual expenditures for operating expenses in fiscal year 1960 totaled $2,398,898,728. The estimated amounts available for expenditures in fiscal years 1960, 1961, and 1962, the