MANAGEMENT OF FEDERAL ASSETS HEARINGS BEFORE THE COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE NINETY-SEVENTH CONGRESS SECOND SESSION ON S. Res. 231 REGARDING THE MANAGEMENT OF UNITED STATES ASSETS FEBRUARY 25 AND MARCH 18, 1982 Printed for the use of the Committee on Governmental Affairs COMMITTEE ON GOVERNMENTAL AFFAIRS WILLIAM V. ROTH, JR., Delaware, Chairman CHARLES H. PERCY, Illinois TED STEVENS, Alaska CHARLES MCC. MATHIAS, JR., Maryland DAVID DURENBERGER, Minnesota MACK MATTINGLY, Georgia WARREN B. RUDMAN, New Hampshire THOMAS F. EAGLETON, Missouri JIM SASSER, Tennessee JOAN M. MCENTEE, Staff Director C. LINCOLN HOEWING, Professional Staff Member (II) CONTENTS Page Hon. Larry Winn, Jr., a Representative in Congress from the State of Kansas. Hon. Kenneth F. Kramer, a Representative in Congress from the State of David A. Stockman, Director, Office of Management and Budget. J. Terrence Brunner, executive director, Better Government Association, Chi- cago, Ill., accompanied by Larry Yellen, investigator-attorney and Leslie Alan Greenspan, Townsend-Greenspan & Co., Inc., New York, N.Y.. Hon. Joseph R. Biden, Jr., U.S. Senator from the State of Delaware Roy Fair, chairman, Realtor's Legislative Committee, National Association of Realtors, acompanied by Thomas C. Franks, director, Environmental and Alison Horton, associate legislative director, National Audubon Society, Washington, D.C.; Terry Šopher, Wilderness Society, Washington, D.Č.; Dusty Zaunbrecher, National Wildlife Federation; Debbie Sease, Sierra Club, Washington, D.C.; and Maitland Sharpe, conservation director, Izaak Walton League, Arlington, Va.. Tim Schultz, commissioner, Rio Blanco County, Colo.; and Harry Bowes, executive director, Colorado County, National Association of Counties, Peter J. Reclite, ASA, international president; John L. Gadd, ASA, senior vice president; Bernard Goodman, ASA, past president; and Dexter D. Mac- Bride, ASA, executive vice president, American Society of Appraisers.... 129 149 96 149 155 129 149 Prepared statement Letters to Senator Percy from: 65 Caspar Weinberger, Secretary of Defense, March 8, 1982.. 25 253 Edward E. Horgan, Jr., Assistant Postmaster General, Government Rela- 291 MANAGEMENT OF FEDERAL ASSETS THURSDAY, FEBRUARY 25, 1982 U.S. SENATE, COMMITTEE ON GOVERNMENTAL AFFAIRS, Washington, D.C. The committee met at 9 a.m., in room 3110, Dirksen Senate Office Building, Hon. Charles H. Percy presiding. Present: Senator Percy. Staff present: William A. Strauss, chief counsel and staff director; and Alan Mertz, professional staff member. OPENING STATEMENT OF SENATOR PERCY Senator PERCY. If some of my colleagues do not show up this morning it is because they left the Senate at 2 o'clock this morning. So they may be a little tardy this morning getting in. It doesn't evidence any lack of interest in this legislation. We are looking forward very much indeed to working intimately and closely with our House principal sponsors, Congressman Winn and Congressman Kramer. This morning we begin hearings on Senate Resolution 231, which calls for a new direction in the management of real property assets of the United States. A few weeks ago, we reached a milestone in American historythe national debt surpassed the $1 trillion mark. This is not a milestone we should be proud of. It should be a signal to the Congress that we must act to stop this dangerous trend by the mideighties, or we may push our economy past the breaking point. The effects of two decades of reckless spending by the Federal Government can be seen in my own State. In Illinois, almost 1 worker in 10 is unemployed. High interest rates are pushing small businesses into bankruptcy daily and stifling growth and production in others. Equally disturbing is what interest rates are doing to the hopes and dreams of young Americans. Few of them can afford to buy homes for their growing families-a terrible fact that we in Congress have to do something about. These examples of what I think this legislation can do is why 38 of us in the Senate are enthusiastic about it and it is growing daily and I am going to take a few minutes to give a little of the past history most of which our two congressional witnesses are very, very familiar with. In the past the only solution offered to attack sprawling and unmanageable Government spending was to cut programs-a solution I have generally supported. But there is a limit to how much we can cut back-a $1 trillion debt is such a staggering problem that (1) |