system will dramatically enhance the technical capabilities of the system which will mean more programming opportunities and an increase in the availability of programs required to meet the needs of radio audiences. Finally, although emphasis has been placed primarily on programming and its relationship to satellite distribution, it should be pointed out that these funds and the uses to which they are put cannot help but have a beneficial impact on other important priority areas such as increased opportunities for women and minorities both in terms of employment and programming; more time and resources available for long-range planning; and other priority areas. In short, these funds can and no doubt will have a major impact on high priority discretionary activities within public broadcasting. The $1 million in increased financial support for radio programs will be used to improve national programming. With the advice and support of the stations, CPB's highest priority in the development of public radio in recent years has been the expansion and upgrade of public radio coverage. As a result, given the limited total funds of CPB, only modest growth in its support of national program piloting and production for radio has been possible. With its increased funding in FY 1977 CPB made a special $250,000 grant to NPR for program planning, development, and piloting. With the additional funds allocated from the supplemental funding for radio program production and acquisition, NPR will be able to advance this effort significantly. Such development efforts are a vital prerequisite to full and effective utilization of the satellite interconnection scheduled to begin radio service in 1980. Already in the planning stages are regular services for minority and handicapped audiences, experimental programs in drama and the arts, and a new daily public affairs service. The additional funds available for radio program development will enable NPR to move from planning into the pilot and production phase in such areas as these, to test their results, and decide on what programs will best serve its member stations' audiences. Equally important, such new programs can help attract support from non-federal sources, both at the national level and at the local level where the member stations of NPR can increased the quality and choice of their programs. Fiscal year 1978: Estimate Revised Increase Activity-Coverage expansion Thousands $1, 058 1, 118 60 In public radio, improving population coverage is a high priority. The Coverage Expansion Project is a special effort designed to assist the establishment of full service public radio stations in major urban centers which are currently unserved. Only about 60% of the population is covered by public radio signal. Service must be extended into many communities, including about one-fourth of the largest metropolitan centers which are now without a full-service public radio station. An upgrading of the service in the largest cities is often also needed. CPB's coverage expansion program will continue to provide support for good local efforts to bring public radio to unserved audiences. This additional $60,000 will allow for the full support of the existing program out of the Direct Radio Funds available in FY78. It will also allow for the awarding of two major market upgrades in FY 1978. CPB and the public radio stations are currently engaged in the planning and development of a satellite interconnection system which will replace the current single line terrestrial system. The current system of interconnection and distribution has been a major impediment to improving the scope and quality of service provided by public radio. Public radio cannot distribute music programming nationally or make use of stereophonic broadcasts, create regional hook-ups, or use other techniques required to utilize the full potential of public radio as a vital and flexible medium. At the same time that the decision was made to adopt a satellite distribution system, many of the technical details were unknown or untested. The intial budget estimate was $10 million. It was agreed that the public radio stations would contribute $7 million, primarily through reservation of their Community Service Grants, and that CPB would contribute the remaining $3 million either through borrowing or through its own resources. Since that time considerable effort has gone into evaluating the needs and requirements for the satellite system. With technical changes, modifications in system requirements, etc., it appears that the revised estimate for the radio system must be substantially increased. It is CPB's proposal that $1.5 million of the increased funds made available through this supplemental be set aside to be applied against this increased estimate. The availability of these additional funds has provided a unique opportunity to assure continued planning and development of this vital project without having to reprogram funds for existing budgets either now or at some future date. CLERK'S NOTE.-The following additional justification material related to the Railroad Retirement Board was submitted for the Subcommittee's consideration: RAILROAD RETIREMENT BOARD STATEMENT ON APPROPRIATION ESTIMATES (Supplemental request for fiscal year 1978) Mr. Chairman and Members of the Committee, before discussing the specifics of our 1978 supplemental budget request, I would like to furnish some general information regarding the Railroad Retirement Board. PROGRAMS ADMINISTERED BY THE RAILROAD RETIREMENT BOARD The Railroad Retirement Board administers a regular retirement system for the payment of retirement and disability annuities to railroad employees, annuities to their spouses, benefits to their survivors, and payment under certain conditions of supplemental annuities, in addition to regular annuities. The Board also administers a system for the payment of unemployment and sickness benefits to qualified railroad workers, and participates in the administration of the medicare program for persons covered by the Railroad Retirement Act. In addition, the Regional Rail Reorganization Act of 1973 provides for various benefits to protected employees adversely affected in the establishment of the Midwest and Northeast rail system provided by that Act. The payment of all allowances, expenses, and costs provided protected employees will be made by the Consolidated Rail Corporation, the United States Railway Association (where applicable), and acquiring railroads, as the case may be. These organizations upon certification to the Railroad Retirement Board of the amounts paid to protected employees then will be reimbursed for such amounts by the Board. The Act authorizes appropriations to the Board for this purpose up to the aggregate sum of $250,000,000. STRUCTURE OF THE BOARD The Railroad Retirement Board is administered by a three-member Board appointed by the President, by and with the advice and consent of the Senateone member upon the recommendation of representatives of employees, one upon recommendation of representatives of carriers, and one, the Chairman, without designated recommendation. FINANCING THE RAILROAD RETIREMENT PROGRAM The railroad retirement system is financed by taxes paid by railroad employees and employers into trust funds. The amounts needed for benefit payments and administrative expenses are derived from these trust funds. Congress must authorize the amounts to be spent for administrative expenses. Regional Rail Transportation Protective Account payments are appropriated annually by the Congress. REASON FOR SUPPLEMENTAL REQUEST The severe weather, the effect of the coal strike, and Conrail's announced intention of attriting more than the usual number of employees have driven outlays from the Regional Rail Transportation Protective Account far above the monthly levels expected for this year. Based upon the current rates of expenditure through February 28, 1978, the Account will run out of funds at the end of the month of May. As you know, funds in this account are provided under the Regional Rail Reorganization Act of 1973 to reimburse Conrail and other affected railroads for employee protective payments made to employees adversely affected by the reorganization of the Northeast and Midwest railroads. Pursuant to the Comptroller General's decision B-114817 (August 2, 1976), the Board's function is to reimburse the claiming party; the Board does not audit the original determination of eligibility and entitlement. Considering the rate of expenditure in the second quarter of fiscal year 1978, and desiring to keep to the original budget plan of carrying $5 million forward into fiscal year 1979, we are requesting a supplemental appropriation of $43.5 million. Fiscal year 1978 financing for the regional rail transportation protective account Spent through first half: From accounting records_-_. Available for second half: By subtraction__. Second half estimated: Based on second quarter average in 1978___ Thousands $50, 000 5, 038 55, 038 42, 500 12, 538 48,000 Total average spending per quarter of $1.5 million__- 43, 462 43, 500 RAILROAD RETIREMENT BOARD Additional required: REGIONAL RAIL TRANSPORTATION PROTECTIVE ACCOUNT For an additional amount for payment of benefits under Section 509 of the Rail Reorganization Act of 1973, to remain available until expended, $43,500,000. 29-226 (Pt. 1) O 78 - 6 |