Funds available to the General Services Administration shall be available for the hire of passenger motor vehicles. No part of any money appropriated by this or any other act for any agency of the executive branch of the Government shall be used during the current fiscal year for the purchase within the continental limits of the United States of any typewriting machnies except in accordance with regulations issued pursuant to the provisions of the Federal Property and Administrative Services Act of 1949, as amended.] Not to exceed 2 per centum of any appropriation made available to the General Services Administration for the current fiscal year by this act may be transferred to any other such appropriation, but no such appropriation shall be increased thereby more than 2 per centum: Provided, That such transfers shall apply only to operating expenses, and shall not exceed in the aggregate the amount of $2 million. Appropriations available to any department or agency during the current fiscal year for necessary expenses, including maintenance or operating expenses, shall also be available for (a) reimbursement to the General Services Administration for those expenses of renovation and alteration of buildings and facilities which constitute public improvements, performed in accordance with the Public Buildings Act of 1959 (73 Stat. 479) or other applicable law, and (b) transfer or reimbursement to applicable appropriations to said Administration for rents and related expenses, not otherwise provided for, of providing, directly or indirectly, such suitable general purpose space as may be required by any such department or agency, in the District of Columbia or elsewhere. [In disposing of surplus real estate and buildings a reasonable period of time shall be allowed for local governmental units to perfect a comprehensive and coordinated plan of use and procurement.] (Independent Offices Appropriation Act, 1961; Second Supplemental Appropriation Act, 1961.) EXPLANATION OF PROPOSED CHANGES IN LANGUAGE 1. The language in the third paragraph which prohibits purchase of typewriters except in accordance with regulations issued pursuant to the Federal Property Act of 1949, as amended, is recommended for deletion. This point is already amply covered in section 201 of the Federal Property Act itself. Although a provision restricting the maximum price payable for typewriter purchases has appeared in appropriation acts for many years, there have been several changes in the language of the restrictive provision itself, and in other legislation, with the result that the provision cited is now without practical effect. 2. The phraseology added to the penultimate paragraph proposes the legislative authorization necessary to implement the new policy applicable to financing additional leased space required to support expanding programs of other agencies and space reimbursable to GSA during 1961, which is discussed in the general statement under "Operating expenses, Public Buildings Service." Inasmuch as funds for these purposes are included in the 1962 estimates of the other agencies and are not included in GSA's budget, specific authorization is needed to effect the subsequent transfer of funds, as needed, to GSA. Funds so transferred will be merged with the applicable GSA appropriation. The words "or reimbursement" are applicable only to nonappropriated funds, such as trust accounts and corporate funds, which are not susceptible to appropriation transfers. The phrase "or indirectly" applicable to rents and related expenses incurred in providing the space, is intended to provide for those instances where, in the interest of effective space utilization, expansion space for agency X is provided in Government-owned space by moving agency Y out of Government-owned space into an equivalent amount of leased space to be financed by agency X. 3. Language in the last paragraph is deleted in its entirety because (1) it is not sufficiently definitive to avoid unjustifiable delays in disposal of surplus real estate and buildings, and (2) States, and in many instances political subdivisions thereof, including local governmental units such as are referred to in the deleted language, are already given preferential treatment in the acquisition of surplus real property under the provisions of existing law. For example: (a) Section 203 (k) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 484 (k)), which provides that the Administrator of General Services may, in his discretion, assign to the Secretary of Health, Education, and Welfare for further transfer, at a public beneût allowance of as much as 100 percent, surplus real property recommended by the Secretary as being needed for health or educational uses. (b) Section 13 (g) of the Surplus Property Act of 1944, as amended (50 U.S.C. App. 1622(g)), which provides for the disposal of surplus property (exclusive of industrial property), without consideration which is determined by the Administrator of the Federal Aviation Agency to be suitable for use as a public airport. (c) Section 13 (h) of the Surplus Property Act of 1944, as amended (50 U.S.C. App. 1622 (h)), which provides for the disposal of surplus real property which, in the determination of the Secretary of the Interior, is suitable and desirable for use as a public park or public recreational area at 50 percent of the fair value of the property, or for use as an historic monument without monetary consideration. (d) The act of May 19, 1948 (62 Stat. 240), which authorizes the Administrator of General Services to transfer to a State surplus real property for use for the conservation of wildlife, other than migratory birds, provided the Administrator determines that it is chiefly valuable for use for such purpose. Such transfers are made without monetary consideration. (e) Title 23, United States Code, sections 107 and 317, which authorize the disposal of real property or interests therein determined by the Secretary of Commerce to be reasonably necessary for the right-of-way of a Federal aid or other highway or as a source of material for the construction and maintenance of such highway adjacent to the real property. Such disposals are made without monetary consideration. (f) The act of August 26, 1935, as amended (40 U.S.C. 345b), which authorizes the disposal, without or with consideration, of interests in real property for the authorized widening of public highways, streets or alleys. On the basis of General Services Administration's experience prior to the enactment of the Independent Offices Appropriation Act, 1961, we believe that the provision of that act referred to above will tend to cause greater delay in the disposal of increasing numbers of properties resulting in additional cost to the Government for protection, maintenance, and administration of the properties. In addition, General Services Administration and other disposal agencies will incur increased administrative costs in carrying out the notification requirements inherent in the aforesaid provision of said act in many cases where it is obvious from the nature of the property or interest to be disposed of that local governmental units would have no interest in acquiring the property. For the foregoing reasons, deletion of the language incorporated in the Independent Offices Appropriation Act, 1961, is recommended. To remove any possibility that the provision in the 1961 act could be construed to be permanent legislation GSA presently plans to recommend its repeal. FINANCING SPACE EXPANSIONS Mr. THOMAS. During the current fiscal year the new space will be paid for out of the working fund of the agencies. In other words, it has been transferred from GSA to the agencies. The transfer does not make sense. Mr. OSTERTAG. It is rather difficult to locate responsibility. Here, for example, on page I-30 you have a list of schedule A which is GSA responsibility, totaling $165 million and income from other agencies amounts to $81,786,000. The total expenditure amounts to $248 million. Mr. TURPIN. Mr. Ostertag, I can give you, in general, what the breaking line is. Generally, special purpose type space is financed by these other agencies and would continue to be financed by those agencies. GSA has had the responsibility for financing general purpose space for existing Government programs. Beginning with fiscal year 1962, there is a proposal before the committee that provides that any space required by agencies because of expansions in their programs would be financed by those agencies in the first year of operations, and the provision in the language that the chairman referred to would authorize those other agencies to transfer funds to GSA for the actual cost of any space acquired for that purpose. Mr. YATES. What is the purpose of that language? Why do you want it changed? Mr. TURPIN. Mr. Chairman, in the past there has not been any one way of handling it. A part of the additional space requirements of agencies has been included in the GSA budget, but to the extent that funds were appropriated to agencies for programs where the space had not been provided in our budget they have reimbursed us for it. So, each year when we came up before this committee, we would have two lists of space that would require additional financing insofar as our appropriation is concerned. One would be the expanded requirements for an agency in the budget year and the other would be for space which had been acquired and was reimbursable to GSA in the preceding year. This proposal was an effort to get it on a little more uniform basis and to provide the committees with improved data by which to consider requests for increases in programs. The proposed plan for space financing will also be easier to administer by the executive branch. Mr. THOMAS. Where is that deduction reflected in this overall amount of operating expenses in the agency? It is put over to the other agency and there certainly ought to be an offset, but where is it? Mr. TURPIN. Mr. Chairman, funds are included only in their budget for additional space that is required as a result of their expanded programs, and those expanded programs Mr. THOMAS. Well, it ought to be reflected as a minus in your maintenance and operations account here. Mr. TURPIN. No, sir. Mr. THOMAS. Instead of that, it shows up as a plus. Mr. TURPIN. No, sir. Could I tell you at this point Mr. THOMAS. You can tell us anything. Go ahead. We may not agree with you, but go ahead. Mr. TURPIN. All of the agencies developed their space requirements expanded additional space requirements-for 1962 and submitted them to the Bureau after we had reviewed them. Those requests were first reduced by us, based on the accommodations for their programs which could be handled in Government-owned buildings, and the difference was then considered by the Bureau of the Budget. These space requirements were further reduced by arriv ing at the amounts that are actually included in the estimates of the respective agencies. No funds are in GSA's budget for the added space. LISTING OF AGENCY REQUIREMENTS There was a listing of this space which was included in the respective agency budgets, by agency, included in the report given the Committee by the Bureau of the Budget. Mr. YATES. Insert this report in the record at this point. (The report referred to follows:) EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D.C., February 27, 1961. Hon. CLARENCE CANNON, Chairman, Committee on Appropriations, Washington, D.C. MY DEAR MR. CHAIRMAN: As Mr. Stans informed you in his letter of January 19, 1961, a special tabulation has been prepared to show the Appropriations Committee what additional general purpose space will be needed in connection with new or expanded programs recommended in the budget. This tabulation is transmitted herewith. An explanation of its effect on the budget is given below. For the last several years, the General Services Administration, in line with its responsibility for providing general purpose space to the Federal agencies, has included amounts in its budget estimate for additional space which must be secured to house new or expanded programs recommended by the President and approved by the Congress. However, the fact that the estimates of the General Services Administration and those of the other agencies are generally reviewed by different subcommittees has made it difficult to keep the funds appropriated to GSA in balance with the programs approved by the Congress. A new method of estimating space requirements has been adopted to provide Congress with improved data to aid in keeping programs and funds for space needs in better balance. The 1962 budget includes in the estimates for each agency which proposes new or expanded programs a sum of money to provide for renting the additional space needed, unless the GSA has determined that it would be able to provide for the agency's space needs in space presently available to the Government or now under construction. No funds for the rental of any new space are included in the GSA estimates. The GSA will, however, continue to exercise its other responsibilities for meeting agency needs for all general purpose space. After Congress has provided funds for undertaking new or expanded work by an agency, the GSA will secure the necessary space. An appropriation transfer will be made to GSA for the 1962 costs of all such space as it is secured. The full fiscal year's costs will be in GSA's 1963 estimates.. This new procedure has the distinct advantage of presenting to the Congress in agency budgets all estimated costs for new or expanded programs including related additional space, and in the GSA estimates all costs for space for programs already approved. The new procedure also preserves the GSA control over the acquisition of general purpose space to assure the maximum utilization of presently available Government space. The general provisions of the GSA chapter of the budget propose language to make funds available for rent of general purpose space in Washington, D.C., or elsewhere and to authorize any agency to transfer funds to, or reimburse applicable appropriations of the General Services Administration for this purpose. The adoption of this language is essential to the proper functioning of the new plan. It also makes possible the elimination of language in several appropriations authorizing the rental of space in the District of Columbia. In the past, whenver a new or or expanded program had been authorized after the submission of the annual estimates, the agency was required to secure the necessary funds and reimburse GSA for the space it secured for the new program. After a full fiscal year's rent had been reimbursed to GSA on this basis, that amount was shown as an increase in the GSA estimates for the following fiscal year and the agency's estimates reduced accordingly. No such transfers are included in the 1962 budget; all such situations are reflected in agency estimates for 1962, and the general provision referred to above will provide the authorization to transfer such amounts to GSA during 1962. This will then provide a uniform system under which the Congress will always have before it, in the estimates for any new or expanded program, the cost of budgeting the necessary space, and GSA's budget will always carry funds for general purpose space for previously approved programs. Tabulation number 1 shows which appropriations include funds for additional space, the square footage involved, and the estimated costs thereof for 1962. The committees will therefore know that, if they approve these budget estimates, an amount approximating the 1962 estimate will be transferred to GSA during that year, the exact amount being determined by the actual cost of the space. GSA will estimate for the full annual cost of such space in its 1963 budget. Tabulation number 2 shows space under contract when the 1962 budget was prepared, the costs of which are being reimbursed to GSA in 1961. The amounts shown are included in agency budgets for 1962, will be moved to the GSA budget by appropriation transfer during 1962, and will be in GSA's 1963 estimates. The new procedure was developed in cooperation with the General Services Administration. It is my recommendation that the Congress adopt this method of appropriating for additional general purpose space. I am convinced that this method will provide both the executive branch and the legislative branch with a more exact estimate of the cost of new or expanded programs and make possible more effective budgetary control. Sincerely yours, DAVID E. BELL, Director. |