TABLE II.—Road construction, Route 3: Project, budget classification, breakdown

The work covered by this estimate of a $5 million obligational program for the 1962 fiscal year falls into the standard budget classifications as follows: (a) Grading, draining, and surfacing, 102.5 miles_ (b) Bridge construction, 204.0 feet-

(c) Surveys and plans, 47.1 miles___

Total

$4,750,000

100,000 150, 000

5, 000, 000

(a) Grading, draining, and surfacing, $4,750,000.-This feature covers clearing rights-of-way, installing drainage structures, such as culverts, constructing the roadbed, constructing the select subbase and the base course, and bituminous surfacing. This estimate covers a total of 102.5 miles-47.9 miles on Route 1 and 54.6 miles on Route 3.

(b) Bridge construction, $100,000.-This estimate covers the cost of constructing the Moencopi Bridge on Route 3 to State highway secondary standards.

(c) Survey and plans, $150,000.-This feature provides for the reconnaissance, survey, location survey, estimates, and plans necessary to invite bids for contracts and construction. This work will cover 47.1 miles which include projects in this proposed program and also on the remainder of Routes 1 and 3.

In accordance with an agreement between the Bureau of Indian Affairs and the States of New Mexico and Arizona, the projects on Routes 1 and 3 are constructed by the Bureau to accepted State highway secondary standards and when completed the States will accept full responsibility and designate each route as a State highway.

Further breakdown of the program into separate classes of work is as follows: Route 1: 47.9 miles of grading and draining at an average cost of $26,492; and 47.9 miles of bituminous paving, including base course, at an average cost of $37,849. Route 3: 54.6 miles of grade widening at an average cost of $6,245 per mile; 54.6 miles of bituminous paving, including base course, at an average cost of $24,304 per mile; and a bridge 204 feet long at an average cost of $490 per foot.

Proposed projects will be located as follows: Route 1-U.S. 89 to Tuba City, and Kayenta to Chinle Wash; Route 3-Tuba City east 12 miles, and Keams Canyon to Ganado.

This program will be allocated to the Phonix area office which has jurisdiction of the Hopi Reservation, and to the Gallup area office which has jurisdiction of the Navajo Reservation. Tentative allocations are being made to various sections of routes 1 and 3. The program is distributed in table III.

TABLE III.-Navajo-Hopi road construction, Route 1 and Route 3, 1962-Route and area budget classification breakdown

Itemization of estimate-Road construction (liquidation of contract authorization), Bureau of Indian Affairs

Chairman HAYDEN. The House of Representatives reduced this amount by a million dollars. Can you stand that cut?

Mr. MASSEY. We do not think we can, Senator Hayden, because of this reason which we think the House perhaps was not aware of. To improve employment, we recently apportioned an additional $2.4 million for road construction work. This will mean that we will obligate an additional $2.4 million, at the end of this fiscal year, for which we will need cash during the next fiscal year to liquidate. This is why we do not believe that we can carry out our proposed program with a million dollar reduction in the cash, because the cash should be there when the contractors' earnings are approved.

Senator MUNDT. Would this cut have an adverse effect on my St. Francis-Kilgore Road we have been discussing?

Mr. MASSEY. It will have an effect on our total road construction program and some of the scheduling. We could not tell you here whether it would hit this road or that road. It will affect the total construction.

68806-61--14

Senator MUNDT. It would not increase our opportunity for success? Senator CHAVEZ. Mr. Massey, speaking of roads, we are getting into the Navajo country on the Arizona side in Four Corners. New Mexico has finished to the Arizona line. The road that goes to Tuba City and Chambers, that is. Do you include that in this program? Mr. MASSEY. Yes, sir.

GENERAL ADMINISTRATIVE EXPENSES

Chairman HAYDEN. The budget estimate for fiscal year 1962 for general administrative expenses is $3,792,000, an increase of $5,000 over last year. All of the increase was for additional pay costs and has been disallowed by the House of Representatives. I will place the justification in the record.

(The justification referred to follows:)

GENERAL ADMINISTRATIVE EXPENSES

Pay costs: To provide for increased pay costs on full-year basis__--_.

Budget estimate, 1962_.

+5,000 3,972, 000

The estimate of $3,972,000 is an increase of $5,000 to finance on a full-year basis the pay increase authorized by Public Law 86-568 approved July 1, 1960 (74 Stat. 296).

Plan of work. The programs of the Bureau of Indian Affairs are administered from three primary organizational levels the agency or reservation; the area, encompassing several agencies and reservations; and the central office.

In the central office, basic policy determinations are made, programs are evaluated, and operating procedures are developed, with the area and agency offices carrying out the various programs and functions. In many areas, suboffices are also utilized to administer the various programs of the Bureau because of great distances, scattered Indian reservations and communities, and transportation and communication problems. The administration and financing of these programs are complicated by the diffusion of certain program segments to organizational units below the agency level such as schools and irrigation projects; isolation; the operation and maintenance of facilitating services common to all activities of the Bureau such as central heating plants; common facilities such as office, quarters, storage and supply facilities; and the interdependent nature of most of the programs serving the Indian people.

In the interest of efficiency and economy, the area offices perform the housekeeping functions for services common to all activities. The benefiting activities share the cost of these services on a workload basis reasonably commensurate with the workloads applicable to the activities' operations, since the workload is directly related to the volume of workload created by program activities. The Bureau's proposed 1962 administration program totals $6,946,800, of which $3,972,000 is requested under the "General administrative expense" appropriation and $2,974,800 allocable to program activities. A comparison of the program follows:

This program provides for carrying out administrative functions which support Bureau program activities. These functions include budgeting, accounting, property management, personnel management, and management planning.

Adjustment for increased pay costs: Pay cost supplemental_.

Total amount available 1961-

$250,000 150, 000 2,000

152, 000