Detailed list of new positions by activity-Congressional submission, 1956

1 Offset by 2 positions abolished in activity 1 to arrive at total increase in budget of 44 positions.

7,040

8,410

8,410

3,795.

6, 350

20

157, 485

146

317, 310

Mr. MINTENER. I have a short summary here, Senator Hill, on the Office of the Secretary, and the field administration people are here, too, to give you a statement in that area.

UNDERSTAFFING IN RELATION TO RESPONSIBILITIES

Mr. Chairman and members of the committee, the Office of the Secretary of the Department of Health, Education, and Welfare is clearly understaffed in relation to its tremendous responsibilities. This is the very considered judgment and strong view of the Secretary, supported by those of us who have come into the Department from the business world; by recent findings of the competent management firm of Cresap, McCormick & Paget; and, in specific respects by the General Accounting Office and the General Services Administration. Greater strength is needed in four parts of the Secretary's Office: 1. Executive direction and program coordination: This is the key staff which works closely with the Secretary to try to handle efficiently the enormous volume of important mail and of staff work in connection with congressional requests, preparation for Cabinet and other meetings and the basic executive and program leadership of the Department. Eleven more people are urgently needed, including six allowed by the House to intensify activities of the Committee on Aging.

Assistant Secretary Perkins is here, and 8 of the 11 positions fall within the area of his responsibility, Senator Hill, if you have any specific questions to address to him.

2. Publications and reports: I know of no unit of the Secretary's office that is more overburdened than the small Office of Publications and Reports. Two more people would help materially to relieve the great amount of overtime these people have to put in.

3. Financial management: Our Department is responsible for the proper expenditure of more than $6 billion per year, including trust funds. The secretary does not have in her office adequate staff to assure her of proper expenditure of these funds, and no internal audit staff whatsoever. The General Accounting Office and the management study have both urged that this be promptly rectified. A staff of 6 for internal audit and 5 to improve budgeting, reporting, and fiscal procedures is essential to proper protection of the Department and the public interest.

4. Administration: The recent management study pointed strongly to the need for providing in the Office of the Secretary a small staff skilled in good management practices who could help the constituent units of the Department improve their efficiency and effectiveness. The study also pointed to the need for moving ahead faster in developing departmentwide manuals and management standards. To achieve these 2 basic management responsibilities with even reasonable effectiveness, the management study concluded that not less than 20 additional persons were needed. We concur fully and strongly with this conclusion.

COMMITTEE ON AGING

The House allowance would enable us to add only the six additional persons in the Committee on Aging to our presently authorized staff. We respectfully request favorable consideration of the restoration of $288,000 which will provide for the above-mentioned important activities and urgent personnel shortages.

That is a brief summary, Senator Hill.

Senator HILL. Secretary Perkins, would you like to add something to what Secretary Mintener has said?

Mr. PERKINS. I will just say this. Of the positions asked by the Office of the Secretary, six are in the Committee on Aging, which is the coordinating unit of the Department in the field of aging.

As you know, we are divided functionally by Health, Education, and Welfare, and when we have special problems, such as aging, retarded children, migratory labor, and the like, we cut across constituent lines. That is the job of the Committee on Aging, which now has only three positions.

The House allowed the request for 6 additional positions, to bring the committee staff up to 9, which was, as a matter of fact, the level it enjoyed, I think, way back in 1951. And with the increase in the age of the population, as you well know, Mr. Chairman, we are sitting on top of something like a powder keg in terms of the national impact for the future. I think that the House action in approving those six positions was well justified.

PROGRAM ANALYSIS

So far as two other positions are concerned, they are in the area of program analysis. There is under me one program analysis officer, who has the functions of collecting and coordinating program statistics. and establishing a reporting system for the Department and evaluating and presenting trend data to the top offices, and also liaison with groups such as the CEA, the Bureau of the Budget, and the National Science Foundation, on all matters that relate to program statistics. This one program analysis officer just cannot keep up with the work, and so we are requesting one assistant for him and a stenographer.

Senator HILL. Have you anything else you would like to add on this question?

Mr. MINTENER. I think not, sir. Mr. de Camp is here with the field information, if you would like it.

May I say that I greatly appreciate your making these arrangements for me to come here today.

Senator HILL. We were very happy to do so.

coming. Thank you very much.

We appreciate your

Mr. MINTENER. This is Mr. R. J. de Camp, Mr. Chairman. Senator HILL. Tell us about the field operation, if you will, Mr. deCamp.

OFFICE OF FIELD ADMINISTRATION

STATEMENTS OF BRADSHAW MINTENER, ASSISTANT SECRETARY FOR FEDERAL-STATE RELATIONS; ROBERT J. DE CAMP, DIRECTOR, OFFICE OF FIELD ADMINISTRATION; CHESTER B. LUND, DEPUTY DIRECTOR, OFFICE OF FIELD ADMINISTRATION; LEONARD J. WILBERT, CHIEF, DIVISION OF GRANT-IN-AID AUDITS; AND JAMES F. KELLY, BUDGET OFFICER, HEW

APPROPRIATION ESTIMATE

Salaries and expenses, Office of Field [Services] Administration: For expenses necessary for the Office of Field [Services, including not less than $850,000 for the Division of Grant-in-Aid Audits $1,800,000] Administration, $1,915,000, together with not to exceed [$350,000 $475,000 to be transferred from the Federal old-age and survivors insurance trust fund.

1 Includes $41,750 from the Bureau of Employment Security, Department of Labor (transferred to work ing fund, Office of the Secretary) to cover the cost of merit system services for that Bureau under an agree ment made in 1949 between the Department of Labor and the Department of HEW in the interest of economy and to avoid duplication of contacts with State agencies. The Department of Labor estimates for 1956 provide for transfer of this amount.

1 Includes proposed supplemental of $28,000 (35 positions; 7 average number).

PREPARED STATEMENT

Mr. DE CAMP. I have a prepared statement, Mr. Chairman. Three activities are provided for by this appropriation: (1) Field administration, (2) grant-in-aid audits, and (3) merit system services.

FIELD ADMINISTRATION

The departmental office of 17 and the 9 regional offices of 273 are maintained by this appropriation and provide to the constituent units in the field most administrative services common to all units as well as program coordination. In fiscal year 1955 regional office staff provided payroll, personnel, fiscal, and general services for approximately 8,120 employees; in fiscal year 1956 the number of employees will be increased to approximately 13,230. The request for fiscal year 1956 for these activities includes an increase of $141,292. This increase arises principally from three factors: (1) increase of field staff of 2,200 positions in the Bureau of Old-Age and Survivors Insurance brought about by the 1954 amendments, (2) the proposed reversion of OASI area office payrolls to the regional offices, and (3) the need for the establishment of a records management program.