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Program by activities:

1. Medical evaluation..
2. Research..
3. Scientific evaluation.
4. Education and voluntary compliance.
5. Regulatory compliance.
6. Drug abuse control..
7. Executive direction and technical support.

Total program costs, funded.
Change in selected resources !
10 Total obligations...---

Financing: 11 Receipts and reimbursements from administrative ac

counts... 25 Unobligated balance lapsing.

New obligational authority. New obligational authority: 40 Appropriation.. 41 Transferred to “Operating Expenses Public Building

Service" General Services Administration (75 Stat. 436

and 78 Stat. 655). 42 Transferred from “Assistance to Refugees in the United

States," pay increase (79 Stat. 101)-43 Appropriation (adjusted).

Relation of obligations to expenditures: 10 Total obligations. 70 Receipts and other offsets (items 11-17). 71 Obligations affecting expenditures.. 72 Obligated balance, start of year. 74 Obligated balance, end of year. 77 Adjustments in expired accounts.. 90

Expenditure.--

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1 Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1964, $2,022 thousand (1965 adjustments, --$215 thousand); 1965, $1,576 thousand; 1966, $1,576 thousand; 1967, $1,576 thousand.

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ALLOCATION

TO

ADMINISTRATION

GENERAL SERVICES

25,2 Services of other agencies.
32. 0 Land and structures.

641
583

704
537

2,320 14, 727

1, 224

1, 241

17.047

Total obligations, General Services Administration...

Total obligations.

99.0

1, 254

2, 636

20, 925 22, 970

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29

653

3, 163

4, 508

2, 295

950

16, 830

771

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13

11

44

18,823

15, 128

4,080

16, 830

824

430 1, 254

1, 938

698 2, 636

7, 775 13, 150 20, 925

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19, 001
4,852
1, 845

313
4, 070
1, 790

Program by activities:

1. Construction of additional headquarters laboratory facilities. 2. Construction of district facilities:

(a) Federal construction

(b) Renovation.
3. Construction of pharmacological animal laboratory building.

Total program costs, funded.
Change in selected resources !.
10

Total obligations.
Financing:
16 Comparative transfers from other accounts
21 Unobligated balance available, start of year
24 Unobligated balance available, end of year

48, 668

6, 173

40 New obligational authority (appropriation).

Relation of obligacions to expenditures:
10 Total obligations
70 Receipts and other offsets (items 11-17).
71 Obligations affecting expenditures.
72 Obligated balance, start of year.
74 Obligated balance, end of year.
90 Expenditures.

60
-508

2, 605

508 -2, 113

20, 925

2, 113 -18, 038

790

1,000

5,000

1 Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1964, $855,000 (1965 adjustments, -$5,000); 1965, $1,280,000; 1966, $1,978,000; 1967, $15,128,000.

Mr. FOGARTY. We were to start the hearings this afternoon with the Secretary of Health, Education, and Welfare, but he was asked by the President to go to Hawaii with him. So we will not hear from him until next week.

The first agency in the HEW budget is the Food and Drug Administration.

BIOGRAPHY OF THE ADMINISTRATOR

Dr. Goddard, you are new on this job.

It might be well-though we have known you over the years--to give us a little of your background for the record.

Dr. GODDARD. Thank you, Mr. Chairman and committee members. I am at the present time 42 years old and a commissioned officer in the Public Health Service. My past experience has been

Mr. Flood. How many stripes do you have?

Dr. GODDARD. I hold the rank of rear admiral, upper half of the grade, sir.

My previous experience has been in the Public Health Service, and apart from my professional training I was in the field of accident prevention. I served as chief of that program from 1956 until July 13, 1959.

. At that time I was loaned to the Federal Aviation Agency as the first civil air surgeon of that newly established agency, the post I served in through August 30 of 1962.

At that time I became director of the Communicable Disease Center in Atlanta, Ga., a post I held until the midpart of last month when I accepted the post as commissioner of the Food and Drug Administration.

If you wish I have a summary of my professional experience.
Mr. FOGARTY. Insert that in the record.
(The information referred to follows:)

BACKGROUND INFORMATION ON DR. James L. GODDARD
Following is a summary of the background and experience of Dr. James L.
Goddard, who was appointed Commissioner of the Food and Drug Administra-
tion, Department of lealth, Education, and Welfare, on January 10, 1966.

Dr. Goddard, who is 42 years old, received his medical degree from the George Washington University School of Medicine, Washington, D.C., in 1949, and a master's degree in public health from the Harvard School of Public Health in 1955. He has held teaching appointments at George Washington, Ohio State, and Emory University.

Before coming to FDA, Dr. Goddard had spent 14 years in clinical, research, and administrative assignments in the field of public health. From 1962 until the present time, he had served as Chief of the Communicable Disease Center in the Public Health Service. Prior to that he had spent 3 years as Chief Administrator of the Federal Aviation Agency's medical program, and 3 years as Chief of the Public Health Services accident prevention program.

In recognition of his accomplishments, Dr. Goddard has received the John Jeffries Award for 1962, the Public Health Service Meritorious Service Medal for 1962, and the Distinguished Service Award of the Federal Aviation Agency for 1962. He is a member of many professional organizations, including the American Medical Association, the American Public Health Association, and Delta Omega (the national public health honorary society).

Mr. Flood. Reminds me of a famous poem by Rudyard Kipling. He had a son in the Irish Guards. He was killed in World War I. The Irish Guards had just been made part of the Guards Brigade, made up of the Welsh Fusiliers, the Scotch, and Irish Guards.

Kipling wrote a poem about the Irish Guards in which he said, “We are not so old on the Army lists, but we're not so new at the game." After 150 years we are fighting for France again.

You might be new on this job but you have been around.
Dr. Goddard. Yes, sir. That is very appropriate, sir.

GENERAL STATEMENT

а

Mr. FOGARTY. Go right ahead, Doctor.

Mr. GODDARD. Mr. Chairman, I am pleased to appear before this committee today, in my capacity as the newly appointed Commissioner of the Food and Drug Administration.

This agency is in a period of transition, occasioned by the retirement of Commissioner Larrick and Deputy Commissioner Harvey, and other top management staff. I intend to build on the solid foundation of service to the public that has been a tradition with the Food and Drug Administration. I know the task ahead is a big one and, as Secretary Gardner has recently stated, “the work of the agency, though largely taken for granted, is vital to every American, because the Food and Drug Administration serves as the public's protector against contamination, fraud, impurity, and hazards in the products on which our lives depend.

As you know, Mr. Chairman, through much of its history, the agency has existed with a limited amount of resources although the responsibilities placed upon us by Congress have been great. In recent years, with the support of this committee, we have started to make major headway toward providing the resources commensurate to the agency's responsibilities.

The budget before you today was, of course, developed before I came to this office; however, I have had a chance to sit with the staff and perform an intensive review of our fiscal year 1967 request. I wholeheartedly subscribe to the proposals presented in this budget for new programs and for strengthening of our continuing programs. It is a budget that enables us to move forward and meet the vast responsibilities I alluded to earlier.

THE 1967 BUDGET

Now, Mr. Chairman, I would like to outline briefly our 1967 request. We are proposing a total increase of 720 positions and almost $10.5 million.

Over 20 percent or 163 of the new positions and an increase of $2.5 million will be assigned to our Bureau of Medicine to aid in the review and evaluation of new drug and investigational drug applications and supplemental data. These resources will also help us in our reevaluation work to determine the safety and effectiveness of all new drugs approved since 1938. As you may remember, this was one of the key provisions of the 1962 Kefauver-Harris Drug Amendments. In addition, these resources will permit us to expand our medical and science information program, including adverse reaction reporting and medical reference services. The request would also allow us to enhance the professional development of our medical staff by part-time assignment of these persons to research and teaching centers.

For programs in regulatory and voluntary compliance and education, an increase of $2.4 million and 235 positions is proposed. Most of this increase will go to FDA's 18 field offices, including 170 new positions for field drug regulatory work, which will permit more inspections and more drug analyses in our laboratories and will strengthen FDA's surveillance of drug manufacturing and marketing. There will also be a greater number of inspections and sample analyses of hazardous foods and imports. To expand the consumer information program, an increase of $600,000 will improve our consumer education programs through use of films and television. We will also be conducting consumer surveys. Additional funds are requested to promote voluntary compliance in the regulated industries.

The budget contains 130 new positions and an increase of $1.8 million for scientific research and evaluation programs. The largest portion of these resources will be devoted to special studies on the chemical and biological contamination of foods and to the study of ways in which drugs act on experimental animals. The increase in the research and evaluation budget will also permit us to expedite the processing of pharmacological data submitted with new drug and investigational drug applications.

In the drug abuse area, 104 positions, including 102 in the field and about $2.8 million is requested to strengthen control over the illicit traffic of stimulant, depressant, and counterfeit drugs as provided in the Drug Abuse Control Amendments of 1965.

For administration and support of these programs, I have outlined above, 88 positions and $1.1 million is proposed. Funds will be used for a major expansion of our science information program during fiscal year 1967, an in-house training program, expanded data processing services, and other improved administrative services. Of the above total, only 7 positions are requested for executive direction and 29 to improve agency administrative services.

In summary, of the 720 new positions requested, 302 are field positions and 418 will be at headquarters. Viewed in another way, 500 of the increase is for work in the vital drug area and the remainder is for work in foods, pesticides, and general support areas.

BUILDINGS AND FACILITIES

We are requesting an increase of $4 million for our buildings and facilities program. Of this, $2.7 million will be needed to complete buildings already in process of being constructed and provide the equipment they need.

Mr. Chairman, I would like particularly to urge favorable consideration of an item included in the budget for planning a new headquarters research facility. This facility would house the scientific staff that FDA needs to hire between now and 1970, in order to continue to make progress in answering the scientific questions facing the agency. FDA has for too long housed its laboratory research staff in inadequate facilities. Unless we can provide first-quality equipment and facilities for our scientists, we cannot hope to recruit and retain first-quality scientists. Unless space is available, we cannot expand our laboratory research efforts to provide the answers we need to make decisions on matters vital to the Nation's health. An amount of $950,000 in planning funds is requested for this purpose.

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