of $20,000. Under our revised request, we are proposing to absorb approximately 80 percent of the total increased pay cost resulting from enactment of Public Law 90–206.

The total cost of mandatory wage board rate increases under Public Law 763, 83d Congress, which, under the provisions of Public Law 85-872, 85th Congress, were put into effect October 22, 1967, for the Architect of the Capitol and the Botanic Garden, including retirement and other related cost, amounts for the 84 months in the fiscal year 1968 to $320,800. Under our budget estimate submitted last fall, we proposed to absorb $29,800 of this total, resulting in a supplemental pay appropriation request of $291,000. Under our revised study March 1968, we now propose to absorb $231,300, resulting in a revised supplemental pay appropriation request of $89,500. Under our revised request, we are now proposing to absorb approximately 70 percent of the total increased pay cost occurring under Public Law 763, 83d Congress.

In summary, our pay increase costs for the fiscal year 1968 under the two acts-Public Law 90-206 and 763-total $414,440. In our budget requests submitted last fall, we proposed to absorb $97,640 of this total, or 24 percent. Under our revised request, March 1968, we now propose to absorb $304,940 of this total, or 75 percent.

An analysis of proposed absorptions follows:

ABSORPTIONS

Salaries, Office of the Architect of the Capitol

The cost of pay increases under Public Law 90–206 under this appropriation is $25,800, and of wage board pay increases under Public Law 763 is $1,200-or a total of $27,000. Under our revised estimate, we are absorbing $7,000 of this total-or over 25 percent of the total cost. Under our budget estimate last fall, we proposed only a $200 absorption. The $6,800 additional absorption results from personnel changes in four positions, filled at lower rates than budgeted: from delay in effecting changes under the Classification Act, which could not be made until after approval of the Legislative Branch Appropriation Act, July 28, 1967; and other miscellaneous savings effected through economy.

Capitol Buildings

The cost of pay increases under Public Law 90-206 under this appropriation is $18,200, and of wage board pay increases under Public Law 763 is $33,700—or a total of $51,900. Under our revised estimate, we are absorbing $28,900-or 55 percent of the total cost. Under our budget estimate last fall, we proposed a $19.900 absorption. The additional $9,000 absorption results from delays in filling elevator operator positions where turnover has occurred.

Capitol Grounds

The cost of pay increases under Public Law 90-206 under this appropriation is $1,840, and of wage board pay increases under Public Law 763 is $20,600—or a total of $22,440. Under our estimate-both budget and revised-we propose an absorption of $2,940 of this cost. There are only 78 employees paid under this appropriation and, based on current expenditures, no further absorption can be made under this appropriation.

Senate Office Buildings

The cost of pay increases under Public Law 90-206 under this appropriation is $19,900, and of wage board pay increases under Public Law 763 is $70.300--or a total of $90,200. Under our revised estimate, we are absorbing the full cost of $90,200. Under our budget estimate last fall, we proposed a $32,200 absorption based on normal lapses. The additional $58,000 absorption results from delay in filling eight new positions allowed for 1968, from delay in filling elevator operator positions when turnover has occurred, and from a greater amount of leavewithout-pay than anticipated.

Senate garage

The cost of wage board pay increases under Public Law 763 under this appropriation is $2.100. Under our estimate-both budget and revised-we propose an absorption of only $100. This is a small appropriation, providing for pay of only seven employees, and cannot stand a further absorption.

House office buildings

The cost of pay increases under Public Law 90-206 under this appropriation is $23,600, and of wage board pay increases under Public Law 763 is $130,500— or a total of $154,100. Under our revised estimate, we are absorbing the full cost of $154,100. Under our budget estimate last fall, we proposed a $30,600 absorption. The additiona absorption results from a saving of $45,000 due to 28 new positions of attendants and laborers allowed for the underground garages in squares 637 and 691 not being filled until the middle of September 1967 when the new garages were placed in operation, whereas the budget estimate anticipated occupancy in June or July 1967; $38,000 from eight elevator operator positions for the elevators in the area of the Cannon Building being remodeled under the second phase construction program not being filled; $10,000 due to additional turnover and delays in filling other vacancies.

Capitol powerplant

The cost of pay increases under Public Law 90-206 under this appropriation is $1,600, and of wage board pay increases under Public Law 763 is $25,700— or a total of $27,300. Under our budget estimate last fall, we proposed a $7,300 absorption. Under our revised estimate, we are absorbing an additional $10,000 resulting from savings in delay in filling of five additional positions allowed for 1968.

Library buildings and grounds, structural and mechanical care

The cost of pay increases under Public Law 90-206 under this appropriation is $700, and of wage board pay increases under Public Law 763 is $22,100-or a total of $22,800. Under our estimate-both budget and revised-we propose to absorb $800 of this amount. There are only 64 employees paid under this appropriation; there has been little turnover this year; and, based on payroll expenditures to date and current rate of expenditure, no further absorption can be made under this salary item.

Salaries and expenses, Botanic Garden

The cost of pay increases under Public Law 90-206 under this appropriation is $2,000, and of wage board pay increases under Public Law 763 is $14,600——— or a total of $16,600. Under our estimate-both budget and revised-we propose to absorb $3,600 of this amount. There are only 56 employees paid under this appropriation; there has been little turnover this year; and, based on payroll expenditures to date and current rate of expenditure, no further absorption can be made under this salary item.

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

DANIEL J. FLOOD, Pennsylvania, Chairman

WILLIAM H. NATCHER, Kentucky MELVIN R. LAIRD, Wisconsin NEAL SMITH, Iowa

W. R. HULL, Jr., Missouri

BOB CASEY Texas

ROBERT H. MICHEL, Illinois

GARNER E. SHRIVER, Kansas

DEPARTMENT OF LABOR

BUREAU OF EMPLOYMENT SECURITY

TUESDAY, MARCH 26, 1968.

WITNESSES

ROBERT C. GOODWIN, ADMINISTRATOR

W. R. CURTIS, DEPUTY ADMINISTRATOR

EDWARD L. OMOHUNDRO, CHIEF, VETERANS'

SERVICE

EMPLOYMENT

PHILIP T. LAWLOR, DIRECTOR, OFFICE OF BUDGET ORGANIZATION AND MANAGEMENT

MICHAEL J. NASTICK, CHIEF, DIVISION OF APPROPRIATIONS AND FEDERAL FISCAL ACTIVITIES

RICHARD E. MILLER, DIRECTOR, OFFICE OF PROGRAM AND BUDGET REVIEW

Mr. HULL. The committee will come to order.

First we have two supplementals for the Bureau of Employment Security.

Mr. Goodwin.

Mr. GOODWIN. Thank you, Mr. Chairman.

We have this morning one supplemental for State grants and a supplemental for our salaries and expense appropriation. These supplementals are requested in House Document 274. The salaries and expense item covers three different functions. I will give first the statement on State grants, Mr. Chairman.

SUPPLEMENTAL REQUEST FOR LIMITATION ON GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION AND EMPLOYMENT SERVICE ADMINISTRATION (TRUST FUND)

Mr. Chairman and members of the committee, this request for a supplemental appropriation is for a total of $295,000. This amount is needed to finance the costs of assistance for increasing numbers of returning veterans seeking jobs.

Enactment of the cold war GI bill, the President's personal contact program, and the establishment of U.S. Veterans' Assistance Centers

25

are greatly increasing the demands for personnel to assist the rapidly growing number of Vietnam returnees and other veterans seeking aid. We are requesting $295,000 to finance 50 new positions for this activity. Thirty-seven of the positions will be used to provide employment assistance and aid at Veterans' Assistance Centers. The centers will put forth particular effort toward the problems of veterans with special employment or training problems as well as attempting to assist all other returning veterans in their areas.

Thirteen positions will be devoted to the President's personal contact program. Under this program veterans returning from the armed services are contacted by the nearest public employment office. The office endeavors to determine the veteran's particular job needs and offers him aid in finding a job, employment counseling, testing, and/or referral to training.

All of the additional need can be financed from trust fund revenues. Mr. Chairman, this concludes my statement on the supplemental request for the Bureau of Employment Security, grants to States for unemployment compensation, and Employment Service administra

tion.

Mr. HULL. You may continue with the other statement.

SUPPLEMENTAL REQUEST FOR SALARIES AND EXPENSES, BUREAU OF EMPLOYMENT SECURITY

Mr. GOODWIN. This is the salaries and expense item.

Mr. Chairman and members of the committee, this supplemental request for operation of the Bureau of Employment Security is for a total of $780,000 over the enacted 1968 appropriation of $20,620,000. Of the total $738,000 is financed from the trust fund and $42,000 is a proposed transfer of general fund moneys. The increase provides for carrying out Bureau responsibilities under the Exemplary Rehabilitation Certification Act (Public Law 89-690) and the Veterans' Readjustment Benefits Act of 1966 and recent Presidential recommendations on Veterans' Assistance Centers. It also provides for increases in civilian pay scales pursuant to Public Law 90-206, effective October 8, 1967.

The Exemplary Rehabilitation Certification Act authorizes the award of exemplary rehabilitation certificates to any person discharged or dismissed from the Armed Forces under conditions other than honorable, upon his being able to establish that he has rehabilitated himself and that his character, conduct, activities, and habits since he was discharged or dismissed have been exemplary for at least 3 years. The average of such discharges, from 1957 to 1967, as furnished by the Department of Defense, was in excess of 45,000 annually. The act does not affect, change, or supersede the previous discharge in any way, nor would it allow any veterans' benefits to which the individual would not otherwise be entitled. Veterans who ultimately receive the exemplary rehabilitation certificate will be urged to go to their loacl employment offices for counseling and job development. A total of $173,000 and 10 positions are requested to carry out the responsibilities of the Secretary of Labor under this program.

An additional $89,000 and three positions are requested to give guidance and direction to the State agencies in providing increased