TRANSFER OF $160,000 FROM OEO Mr. FOGARTY. I don't quite understand this transfer of $160,000 of expense from the Office of Economic Opportunity to this appropriation. Just what is this all about and why should it be transferred? Did you suggest it and, if not, where did the idea originate? Mr. BAXTER. I would like to have Mr. Cardwell answer. Mr. CARDWELL. The Office of Economic Opportunity provided this: year, in fact, the amount of $160,000 to finance the cost of 11 positions: to enable the Department to direct, supervise, and coordinate HEW's. responsibilities in the field of antipoverty. The 1967 budget proposes; to finance these activities in the regular salary and expenses account for the Office of Field Administration. Mr. FOGARTY. You are not going to testify on the surplus property part of your appropriation? Mr. BAXTER. No, sir. Mr. FOGARTY. This is a little different than it used to be. Mr. CARDWELL. Yes. Mr. FOGARTY. Mr. Lund used to testify to this. Mr. CARDWELL. This reflects the recent organizational changes. Mr. Simpson, Assistant Secretary for Administration, now has the responsibility for these activities. Mr. BAXTER. Mr. Chairman, I would like to go back, for a minute, if I may, to comment about water pollution effects on the Department, and particularly the regional offices. Right now, the rate of growth in programs, and particularly in the implementation of them, is so great that within a few months we will probably have greater activity, even without water pollution, than we had before. For example, the decentralization of the Office of Education will bring almost as many people to the regional offices, as will be removed by the transfer of water pollution. Mr. FOGARTY. Are there questions? REGIONAL FEDERAL EMPLOYEES Mr. SHRIVER. I notice in your statement, on page 2, you refer to 28,900 regional employees. Are these all Federal employees? Mr. BAXTER. Yes. Mr. SHRIVER. They are under your jurisdiction, 28,900 regional employees? Mr. BAXTER. These are regional and field personnel, including social security district oflices, public health installations, and some other activities. Mr. SHRIVER. That is all. Mr. FOGARTY. Mr. Flood. RESPONSIBILITIES OF THE DIRECTOR OF FIELD COORDINATION Mr. FLOOD. You are the Director of Field Coordination. What in the world is that? Who thought that title up? What do you do? Mr. BAXTER. We run out of names sometimes. Mr. FLOOD. I know. What do you do starting tomorrow morning at 9 o'clock? What is one thing you do? Mr. BAXTER. I try to look over the stack of work and decide which is more important to start with. But that is not a reasonable answer. 60-627-66-pt. 2 -102 I think that one of our big jobs in the Department, particularly with all of its new and interrelated programs, is to step up communication among all agencies and to try to bring to bear, at the regional, State, and local levels, these programs as one service to the people. Mr. FLOOD. Regional, State, and local? Mr. BAXTER. Yes. Mr. FLOOD. Do you get mixed up in that, that far down the line? Mr. FOGARTY. Sure. He was one of them. Mr. BAXTER. I just came in from the field, sir. Mr. FLOOD. Local? Mr. BAXTER. Yes, sir. Mr. FOGARTY. He had 10 years down there. Mr. FLOOD. He wasn't a local, he was a regional man. What are you doing now? Never mind for the past 10 years. M. BAXTER. I guess the best description of what I am doing now is to say that I am trying to get throughout the country a concentration of effort to put these different categorical programs together within the Department at State level and at local level. That is what I meant to say a minute ago. Mr. FLOOD. This is for Health, Education, and Welfare? Mr. BAXTER. And social security, rehabilitation, and many other fields. Mr. FLOOD. What are you-a minor deity? You are going to do this? Mr. BAXTER. I hope to do an element of it, sir. One of the techniques, of course, is to work with State governments, with local governments, to have conferences with State and local people. Put everybody in the same room, and it is pretty hard to pass the buck when you have them all together. Mr. FLOOD. Will you have them down here, or will you go out and see them? You will have regional conferences, I suppose. Mr. BAXTER. Some of both. In fact, we had the regional directors in last week. Mr. FLOOD. I mean the State people, the Commonwealth people. Mr. BAXTER. We will work closely with them, too, in regional offices particularly. STATE MERIT SYSTEM Mr. FLOOD. What do you mean by the "State merit system"? What is a State merit system? Is there merit in State systems? That is novel. Mr. BAXTER. I think there is, Mr. Flood. I think this program has had a great influence on bringing about the career system in State government, and the career system and professional system at local and State levels. Mr. FLOOD. A bona fide State civil service operation? Mr. BAXTER. I think we have some of them; yes, sir. Mr. FLOOD. You, of course, would have no jurisdiction to examine the quality of any State civil service system. They have been suspect for some time. Mr. BAXTER. We have a duty to review State operations and work with the States on developing and maintaining sound personnel practices. Mr. FOGARTY. Under the law you are required to approve some of them. You have to do it by law. Mr. BAXTER. Yes. Mr. FLOOD. I don't know how to read this sentence on the top of page 2. You don't recruit personnel for the State system; do you? Mr. BAXTER. No, sir; but we do assist them, at their request, on recruitment methods. Mr. FLOOD. You have trouble enough getting your own, I suppose. Mr. BAXTER. That is correct. Now particularly. Mr. FLOOD. And you might pick up a few of their very good ones if they are not looking. Mr. BAXTER. I think we do some of that. We are getting some peo⚫ ple back and forth between the States and the Federal Government. Mr. FLOOD. And this affects all of the Health, Education, and Welfare agencies, this whole can of worms in all of the 50 States, as well as your own can of worms, which, outside of the Department of Commerce, is about as bad as you can get. Mr. FOGARTY. And the territories. Mr. FLOOD. All of these and the territories? Mr. FLOOD. You are just one fellow. My. Mr. BAXTER. I don't think my contribution is nearly as important as you make it. Mr. FOGARTY. It is going to be. Mr. Lund who had the job before Mr. Baxter had it, was one of the most efficient employees I have ever met in Government service, and he did one big job. To fill his shoes you are going to have a hard job. He did an excellent job. Mr. FLOOD. I am not so much concerned about the regional offices. I am sure he can do that. That is done by many departments and many opposite numbers. I am concerned about the minute he goes flying out into the blue yonder of 50 States, and all of the cats and dogs they have in their welfare agencies, and all the other State agencies. Mr. BAXTER. Of course, that is why we have regional offices. Mr. FLOOD. They ride herd on them, do they? Mr. BAXTER. Yes, sir; although we try hard to conduct peaceable and effective negotiations rather than to ride herd on them. Mr. FLOOD. More power to you. Mr. FOGARTY. Thank you, Mr. Baxter. Mr. BAXTER. Thank you. JUSTIFICATION MATERIAL SALARIES AND EXPENSES, OFFICE OF FIELD ADMINISTRATION Appropriation.... Old-age and survivors insurance trust fund transfer. Proposed supplemental for civilian pay increase (trust fund). Bureau of Federal Credit Unions transfer.. Proposed supplemental State merit systems (including $32,000 OASI trust fund).. Reimbursement from economic opportunity program. Total..... Old-Age and Survivors Insurance Trust Fund transfer- Proposed supplemental for civilian pay increase (trust fund)_ Reimbursement from economic opportunity program.... (1) Annualization of 47 new positions authorized in 1966- $1,772, 000 1, 545, 000 33,000 36,000 59,000 160,000 3, 605, 000 3,760,000 +155,000 69,000 (3) Communications and other miscellaneous costs related to serving operating agencies regional office staff___ 41,000 58,700 Subtotal, mandatory increases__. 168, 700 Program: (1) Regional office management services (16 positions). Nonrecurring equipment, travel, transportation and other one time costs related to new staff in 1966___ Total net change requested--- EXPLANATION OF MAJOR PROGRAM CHANGES $71, 300 71, 300 240, 000 -85, 000 155,000 Regional office clerical assistance Sixteen management services positions at a cost of $71,300 are necessary to keep up with growing clerical workloads due to program expansion throughout the field. Regional office workloads are expected to increase in both fiscal year 1966 and 1967. Explanation of transfers Reimbursement from Office of $160,000 The Office of Economic Opportunity provided $160,000 and 11 positions for direction and coordination of the Department's responsibilities in the field of antipoverty. The 1967 budget proposes to finance these activities in the regular "Salaries and expenses" account for the Office of Field Administration. This activity has primary responsibility for the development and execution of Department policies relating to the organization, and coordination of the Department's field activities. It also includes the provision of personnel management, financial management, and office services to activities located in or operating under supervision of the nine regional offices. DEPARTMENTAL The headquarters office under the Director of Field Administration operates the integrated regional office system, and directs the general administration of the nine HEW regional offices. The specific major functions of this office are: 1. To provide administrative leadership, direction, and guidance so as to assure effective field operations. 2. To increase uniformity and continuity in field methods, and to develop, issue, and review instructions and directives for the field installations. 3. To assure execution of the Secretary's policies in the field, in reaching program objectives for approximately 50 field programs by increasing coordination |