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DEPARTMENTS OF LABOR AND HEALTH, EDUCATION,

AND WELFARE APPROPRIATIONS FOR 1973

HEARINGS

BEFORE A

Linited States. SUBCOMMITTEE OF THE
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COMMITTEE ON APPROPRIATIONS.

HOUSE OF REPRESENTATIVES

NINETY-SECOND CONGRESS

SECOND SESSION

SUBCOMMITTEE ON DEPARTMENTS OF LABOR AND HEALTH,
EDUCATION, AND WELFARE AND RELATED AGENCIES.)

DANIEL J. FLOOD, Pennsylvania, Chairman
WILLIAM H. NATCHER, Kentucky

ROBERT H. MICHEL, Illinois
NEAL SMITH, Iowa

GARNER E. SHRIVER, Kansas
W. R. HULL, JR., Missouri

SILVIO 0. CONTE, Massachusetts
BOB CASEY, Texas

J. KENNETH ROBINSON, Virginia
EDWARD J. PATTEN, New Jersey

ROBERT M. MOYER, and HENRY A. Neil, Jr., Staff Assistants

PART 1

Statement of the Secretary of Health, Education, and Welfare

Overview of 1973 Budget

Printed for the use of the Committee on Appropriations

U.S. GOVERNMENT PRINTING OFFICE

73-701 O

WASHINGTON : 1972

KEan -A652 1972

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COMMITTEE ON APPROPRIATIONS

GEORGE H. MAHON, Texas, Chairman JAMIE L. WHITTEN, Mississippi

FRANK T. BOW, Ohio JOHN J. ROONEY, New York

CHARLES R, JONAS, North Carolina ROBERT L. F. SIKES, Florida

ELFORD A. CEDERBERG, Michigan OTTO E. PASSMAN, Louisiana

JOHN J. RHODES, Arizona JOE L, EVINS, Tennessee

WILLIAM E. MINSHALL, Ohio EDWARD P. BOLAND, Massachusetts ROBERT H. MICHEL, Illinois WILLIAM H. NATCHER, Kentucky

SILVIO 0. CONTE, Massachusetts DANIEL J. FLOOD, Pennsylvania

GLENN R. DAVIS, Wisconsin TOM STEED, Oklahoma

HOWARD W. ROBISON, New York GEORGE E. SHIPLEY, Illinois

GARNER E. SHRIVER, Kansas JOHN M. SLACK, West Virginia

JOSEPH M. McDADE, Pennsylvania JOHN J. FLYNT, JR., Georgia

MARK ANDREWS, North Dakota NEAL SMITH, Iowa

LOUIS C. WYMAN, New Hampshire ROBERT N. GIAIMO, Connecticut

BURT L. TALCOTT, California JULIA BUTLER HANSEN, Washington DONALD W. RIEGLE, JR., Michigan JOSEPH P. ADDABBO, New York

WENDALL WYATT, Oregon JOHN J. McFALL, California

JACK EDWARDS, Alabama W. R. HULL, JR., Missouri

DEL CLAWSON, California EDWARD J. PATTEN, New Jersey

WILLIAM J. SCHERLE, Iowa CLARENCE D. LONG, Maryland

ROBERT C. MCEWEN, New York SIDNEY R. YATES, Illinois

JOHN T. MYERS, Indiana
BOB CASEY, Texas

J. KENNETH ROBINSON, Virginia
DAVID PRYOR, Arkansas
FRANK E. EVANS, Colorado
DAVID R. OBEY, Wisconsin
EDWARD R. ROYBAL, California
WILLIAM D. HATHAWAY, Maine
NICK GALIFIANAKIS, North Carolina
LOUIS STOKES, Ohio
J. EDWARD ROUSH, Indiana
K. GUNN MCKAY, Utah
TOM BEVILL, Alabama

Paul M. WILSON, Clerk and Staff Director

STAFF ASSISTANTS

WILLIAM GERALD BOLING
GEORGE E. EVANS
ROBERT B. FOSTER
JOHN M. GARRITY
HAROLD A. GRIFFIN
AUBREY A. GUNNELS
JAY B. HOWE
THOMAS J. KINGFIELD
KEITH F. MAINLAND
MILTON B. MEREDITH
AMERICO S. MICONI

DEMPSEY B. MIZELLE
ENID MORRISON
ROBERT M. MOYER
PETER J. MURPHY, Jr.
HENRY A. NEIL, Jr.
ROBERT C. NICHOLAS III
BYRON S. NIELSON
JOHN G. PLASHAL
SAMUEL R. PRESTON
DONALD E. RICHBOURG

EARL C. SILSBY
G. HOMER SKARIN
CHARLES W. SNODGRASS
HUNTER L. SPILLAN
PAUL E. THOMSON
GEORGE A. URIAN
DEREK J. VANDER SCHAAF
EUGENE B. WILHELM
J. DAVID WILLSON
THAYER A. WOOD

SURVEYS AND INVESTIGATIONS

C. R. ANDERSON, Director
LEROY R. KIRKPATRICK, First Assistant

WILLIE C. LAW, Second Assistant
NOTE.—This Surveys and Investigations supervisory staff is supplemented by selected
personnel borrowed on a reimbursable basis for varying lengths of time from various
agencies to staff up specific studies and investigations. This current average annual full-
time personnel equivalent is approximately 42.

ADMINISTRATIVE SUPPORT
GERALD J. CHOUINARD
GEMMA M. HICKEY

FRANCIS W. SADY
JANET Lou DAMERON

VIRGINIA MAY KEYSER MARY ALICE SAUER
BEATRICE T. Dew
FRANCES MAY

DALE M. SHULAW
PAUL V. FARMER
LAWRENCE C. MILLER

AUSTIN G. SMITH
DANIEL V. GUN SHOWS MARILYN R. QUINNEY

RANDOLPH THOMAS

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DEPARTMENTS OF LABOR AND HEALTH, EDUCATION,

AND WELFARE APPROPRIATIONS FOR FISCAL
YEAR 1973

MONDAY, FEBRUARY 7, 1972.

OVERVIEW OF 1973 BUDGET

WITNESSES JAMES B. CARDWELL, ASSISTANT SECRETARY, COMPTROLLER CHARLES MILLER, DEPUTY ASSISTANT SECRETARY, BUDGET WILFORD J. FORBUSH, DIRECTOR, BUDGET J. T. SMITH, SPECIAL ASSISTANT TO THE ASSISTANT SECRETARY,

COMPTROLLER MICHAEL STURMAN, CHIEF, METHODS AND PRESENTATION

BRANCH, DIVISION OF BUDGET
GERALD F. MEYER, CHIEF, HEALTH BRANCH, DIVISION OF BUDGET
FRED PFLUGER, CHIEF, EDUCATION BRANCH, DIVISION OF BUDGET
EARL CANFIELD, JR., CHIEF, WELFARE BRANCH, DIVISION OF

BUDGET
Mr. Flood. The committee will come to order.

We now have the honor and privilege of hearing Mr. James B. Cardwell, the Assistant Secretary, Comptroller, for the Department of Health, Education, and Welfare who will be our first witness on the budget for that Department for fiscal year 1973.

In view of the size of the budget that has been requested by the President this year, he has an extraordinary burden since we are advised that, for the first time, it exceeds even that of the Department of Defense. I think that isn't because of any one person, any particular committee or committees of Congress, the Department of Health, Education, and Welfare or the Department of Defense—I think it is because that is what the people of the Nation want. I remember the song from the great old play "Damn Yankees,” “What Lola Wants, Lola Gets.” I think that probably accounts for the size of the request being made this year with reference to the budget for the Department of Health, Education, and Welfare.

Mr. Cardwell we have known long and favorably and well. It is too bad the record can't show the enthusiasm of my inflections when I say those things. He has served many years in this Department and has served it well, and has been before this committee for more years probably than he cares to remember.

Mr. Cardwell is accompanied by Mr. Charles Miller. Mr. Miller is the Deputy Assistant Secretary for Budget. Mr. Miller is doing his best to fill the very large shoes of Mr. Cardwell who before he became the

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top brass was in Mr. Miller's job. In the opinion of this committee he
is doing very well with a tough assignment.
Mr. Cardwell

and Mr. Miller will be accompanied by Mr. Wilford J. Forbush, the Director of the Budget.

Mr. Cardwell, with that suppose you take up the curtain.

CHART PRESENTATION

I think perhaps I should add that this first hearing traditionally is in the nature of a chart presentation for the purpose of giving us an overall picture of the Department's budget. We listen, I am sure, attentatively; but we don't consider this an examination period unless there is some item a member wishes to have clarified. We will have the Secretary here tomorrow and the next day to present the rationale for the budget and will be questioned on the reasoning and policy considerations behind it.

Mr. CARDWELL. Thank you, Mr. Chairman. I really do enjoy coming back. I have always admired and respected this group and the consideration it gives to HEW's budget.

As you said the Secretary will be here tomorrow.

Mr. FLOOD. I think you would like to know, all of you and the subcommittee too, at the annual dinner of the Wilkes Barre Chamber of Commerce the Secretary was our guest and delivered the principal address. It is the first time I ever heard him speak at that sort of thing. I introduced him elaborately, going into the Harvard background and his ethnic origin and so on, as well as his long years of public service. I want you to know that he made quite a hit, he really did. He did very well. He is a good fellow as well as a distinguished member of the President's Cabinet. As a matter of fact I couldn't have done better myself and that is going pretty far.

Mr. CARDWELL. Yes, it is.

PRESENTATION BY COMPTROLLER

Mr. CARDWELL. Our purpose today is to give you a kind of a background for the budget. It is a fairly complicated one as I am sure many of you already know.

I would like to introduce some of the other men here in addition to Charlie and Bill Forbush. J. T. Smith that works for my office. The rest of the members here are members of Charlie's staff. Gerry Meyer handles the health part of the budget, Fred Pfluger, the educational, and Earl Canfield, the Social and Rehabilitation Service.

Mr. Flood. We have known Pfluger long and well.

Mr. CARDWELL. Mike Sturman who will be at the charts handles putting the papers together that make up the budget.

With that background let's get started. We have a lot of territory to cover. Don't hesitate to interrupt. We would like to keep it as informal as we know how. It is your hearing.

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HEW BUDGET IN BRIEF

(In Billions)

1972 1973
FEDERAL FUNDS:

Budget Authority (Appropriations)$274 $28.7
Outlays

26.1 26.4
TRUST FUNDS:

Budget Authority (Receipts) 51.5 60.8
Outlays

48.3 55.2
INTERFUND ADJUSTMENT: -2.5 -2.7

TOTAL:
Budget Authority

76.5 86.8
Outlays

71.9 78.9

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