1 Includes $425,000 to cover requirements of the Postal Service and Federal Employees Salary Act of 1962, Public Law 87-793, of which $175,000 represents a supplemental request to be submitted later. 2 Includes $625,000 to cover requirements pursuant to the Postal Service and Federal Employees Salary Act of 1962, Public Law 87-793. BUDGET AND PROGRAM ESTIMATES Senator MAGNUSON. You may proceed as you see fit. Mr. WEAVER. Mr. Chairman, it is always a pleasure to appear before your committee. The constituent commissioners are here with me, and we are prepared to be of as much help to the committee as we can in your review of our budget and program estimates for the fiscal year 1964. For the first time in several years, we are appearing before the committee in the absence of the knowledge of the action of the House; however, we are prepared to discuss all of the programs and activities of the Agency as they are reflected in the budget. We have had a busy year, and I think, on the whole, a successful year, since we last met with you. In general, the programs of the Agency are moving ahead, though we are certainly not without our problems. NEW BUILDING IN HOUSING New building in housing is active. New nonfarm starts in 1962 numbered 1,428,000, and in the annual guessing game, my earlier estimate for 1963 of some 1,450,000 starts seems to have been on the conservative side and probably will be exceeded. The May statistics show, for example, some 1,690,000 private starts on a seasonally adjusted annual basis; 1964 should be, from what we can see from here, about the same or perhaps a little bit better. MORTGAGE FUNDS Mortgage funds remain in plentiful supply, although a combination of factors has prevented this fact from having any very marked effect on the price of such funds in the housing market. Mortgage interest rates have declined slightly in recent months, but not enough to have a very significant effect on consumer demand. Moderate discounts on Government-insured mortgages are still prevalent in many areas. CHANGES IN FNMA ACTIVITY These changes in the market have, nevertheless, had a considerable impact on some of our programs, especially in FNMA. We see today a substantially smaller volume of mortgage purchases and a correspondingly higher activity in sales from the various portfolios than were estimated when the budget was prepared some months ago. SALES OF COLLEGE HOUSING BONDS Also, we have initiated and expect to complete successfully our first program of sales from the portfolio of college housing bonds. We estimate that some $50 million in issues of public institutions can be sold at an average price of par or better. Despite their relatively modest rates of yield these are sound investments, and we do not propose to market them at a loss to the Government. If it is agreeable with you, I would suggest that I introduce each item by identifying the program and summarizing the budget request. This could then be followed by such questions as the committee may wish to ask of me and the commissioner concerned. I have arranged my statement in this fashion in the thought that it might serve your convenience and help to make an orderly record of the hearings. Senator MAGNUSON. Before you get to the itemized amounts-you will come back to college housing bonds? Mr. WEAVER. Yes. SALARIES AND EXPENSES The first item is "Salaries and expenses, Office of the Administrator." The "Salaries and expenses" appropriation to the Administrator supports five major programs as follows: General agency supervision. Consolidated compliance activities. Public works planning advances. Urban renewal programs. AMOUNT REQUESTED The 1964 appropriation request for staff expenses of these five activities is $16,675,000-an increase of $1,947,000 over the amount appropriated for the current year. Approximately $500,000 of the increase represents the full-year adjustment for the higher salary rates which were effective for only a portion of fiscal 1963. |