Cost of equipment and related freight for new positions authorized in Fiscal Year 1976 are non-recurring in 1977. Reopening of Posts... 68,900 Costs of equipment and related freight for the reopening of posts at Barranquilla and Belo Horizonte are non-recurred in 1977. 74,500 Consular Support.. The costs of initially installing the Automated Visa Name Check System in six ARA Posts including Equipment and installation and the preparation of the files are non-recurred in 1977. 95,000 Relocation and Renovation. The one-time costs related to renovations and moving costs for space requirements in Panama are non-recurred, as are all of the costs provided for the relocation of the Embassy in Buenos Aires. Post operating expenses for positions authorized in Fiscal Year 1976 were lapsed 25%. An amount of $58,800 is requested to place on a full year basis these additional positions which were assigned to consular duties. Reopening of Posts. The recurring costs for reopening posts at Barranquilla and Belo Horizonte in Fiscal Year 1976 were lapsed 25%. An amount of $40,200 is required to put those recurring operating expenses on a full-year basis. Consular Support.. This figure of $171,100 represents additional funds necessary to put the cost of the Automated Visa Name Check system on an annual basis. This amount is attributed almost entirely to the cost of lease lines. 171,100 ARA-/ $1,477,800 $ 1,309,000 Local Employee Wage Increases, 1977. Wage Scale Increases (Basic Salary $1,127,500; Payments to Other Funds $12,600; Other Related Salary Costs $168,900). The Department is required under the provisions of the Foreign Service Act of 1946 as amended, to base salaries for local employees on locally prevailing wage rates and compensation for corresponding positions in the locality. Current experiences indicate that wage costs will continue to spiral in Fiscal Year 1977. During the first half of Fiscal Year 1976 (July 1, 1975 through December 31, 1975), the following eleven wage scale revisions have been authorized: It is anticipated that before Fiscal Year 1976 closes, each post, in Latin America, will have justified at least one wage scale revision. As Fiscal year 1977 unfolds, it is anticipated that requests for wage scale revisions will become even more urgent. The following table reflects Fiscal Year 1977 estimated wage scale revisions and related costs: Plus: Related Retirement Contributions, Terminal Leave, Temporary and Total Cost FY 1977 Wage Scale Increases. Grade-To-Grade Promotions (Basic Salary $146,100; Payments to Other Funds $1,600; Other Related Salary Costs $21,100). Promotions are granted to local national employees as they demonstrate abilities to assume greater responsibilities. In Fiscal Year 1977, promotions are expected to cost $168,800. Overseas Price Increases. $168,800 Price increases reflected in this budget represent a continuation of the world-wide inflationary trend experienced in the past several years. In terms of post operating expenses, ARA's inflationary rate for Fiscal Year 1977 is estimated at 17.3%. This compares with 15.6% in fiscal year 1976. Although our estimates are based on U.S. Dollar equivalent costs, the local currency consumer price indices for the following representative countries for Fiscal Year 1975 support our overall 17.3% rate for Fiscal Year 1977: Illustrative Fiscal Year 1975 Consumer Price Indices $2,501,500 Changes in operating expenses affect allowances paid to American personnel. For example, as heating fuel and electricity costs soar, landlords increase rents. Eventually these added costs result in increased quarters allowances. Similarly, hotels charge more for accommodations resulting in greater per diem and temporary lodging allowance rates. Of greater monetary impact is the effect of price increases on general operating expenses such as rents, utilities, contractual services and supplies. Examples of actual price increases reported by ARA posts for the first half of Fiscal Year 1976 for these types of expenses are as follows: |