Mr. GARY. The next item that we have is the deficiency request for the Bureau of Customs of $115,000 as contained in House Document No. 203. Their appropriation for fiscal year 1964 was $72,370,000. We have testifying on this item, Mr. Frank B. Gatchell, Jr., Assistant Deputy Commissioner of Customs. We shall insert the justifications at this point in the record. (The justifications follow :) TREASURY DEPARTMENT-BUREAU OF CUSTOMS Salaries and expenses-Continued 6. Obligations: 1st quarter (actual). 21, 282 2d quarter (October, November actual, December estimate). 21, 300 21, 600 4th quarter (estimated) ---. 22, 063 Total actual and estimated obligations. 86, 245 -86, 130 Estimated supplemental required___ 115 7. 8. Less total amount available--- 9. 10. Estimated supplemental included in latest budget__. 11. Date needed: for obligation, June 30, 1964; for expenditure, July 10, 1964. 12. Estimated expenditures from supplemental: In current fiscal year-- In next fiscal year-- After next fiscal year_-_. Total-- 13. Actual obligations last 3 months: September. November--- In budget Revised $115 115 $6, 744, 697 7,437, 043 6,739, 806 JUSTIFICATION FOR PROPOSED 1964 SUPPLEMENTAL APPROPRIATION ESTIMATE Supplemental 1964 funds are requested for the following purpose: 1. Wage board salary increase costs-- Wage board salary increase costs.-Approximately 700 employees of the Bureau of Customs are paid under wage board determinations as to the wage level of comparable jobs in their communities. Under the law, a properly certified wage rate must be placed in effect almost immediately. During fiscal year 1963 wage board rate increases totaled $115,000. These increases were not provided for in our 1964 budget submission. These increases are wholly outside administrative control. Mr. GARY. We shall be glad to hear from you at this time, Mr. Gatchell. GENERAL STATEMENT Mr. GATCHELL. Mr. Chairman, our request for $115,000 is identical in nature to the request for $29,000 you have just heard. It represents the cost of wage board increases which took place last fiscal year, fiscal year 1963. They have been in effect all of the current fiscal year. The large majority of these costs arise in New York where we have the largest group of our wage board employees. These include primarily our laborers, our verifiers, other employees of that nature, who are paid by the hour in accordance with the level of the wages paid to similar employees in private industry. This money is to be derived this year by transfer from, "Salaries and expenses, Office of the Treasurer." Mr. GARY. Since Mr. Weatherbee testified that all of these wage board matters are handled on a governmentwide basis the same testimony he gave with respect to the Secretary's office would apply also to the Bureau of Customs, is that correct? Mr. GATCHELL. The same in every way. Once the Treasury Department wage board adopts the actions of the respective wage determining groups, in our case the Army-Air Force group, or the GSA, it is passed on to us for enactment or putting into effect. Mr. GARY. What was the effective date of the wage board increases? Mr. GATCHELL. Mr. Chairman, the first during fiscal year 1963 was approved for the Portland, Oreg., area on July 8, 1962. The effective date ranged all the way through the year. The last was for the Milwaukee, Wis., area, which was approved June 6, 1963. The largest ones, in New York, were approved effective April 7, 1963. Mr. GARY. Are these increases reflected in your 1965 budget? ANTICIPATION OF FURTHER WAGE BOARD INCREASES Mr. GARY. Do you anticipate any further increases during the current fiscal year? Mr. GATCHELL. We have already had increases this year. As a matter of fact, the increases are somewhat greater than those which took place during the comparable period of last year. During the first 6 months of fiscal year 1963, we had wage board adjustments with annual salary increases totaling a little over $33,000. During the same period of fiscal year 1964, the wage board increase adjustments resulted in annual salary increases of nearly $37,500. These appear to be, and have over the past 10 years, at least, been regularly recurring annual adjustments. Mr. GARY. Are they also reflected in your 1965 budget? Mr. GATCHELL. They are not, sir. We are not authorized under present Bureau of the Budget procedures to include any of those which occur after September 30. The number which occur early in the fiscal year are very few. The largest bulk of ours occur late each fiscal year so that we are always a year behind in getting them financed. Mr. GARY. Then, you will have to have a deficiency next year to cover these items; is that right? Mr. GATCHELL. Yes, sir. We have had one for each of the last 5 or 6 years, or more. Mr. BETTS. There is a possibility we may have to come back yet this fiscal year. The Budget Bureau told me last week they may send up a cleanup supplemental near the end of this session of Congress and they may include some of these additional wage board increases that have occurred since September, which is the cutoff date of this submission. ABSORPTION OF INCREASES Mr. GARY. Have you absorbed any part of these increases? Mr. GATCHELL. Not of the $115,000 we are asking for. We are absorbing all of those which have taken place so far this year, and unless additional money does become available, we will be required to absorb the cost of those which take place during the balance of this fiscal year. Mr. GARY. What is the amount of those that you have absorbed thus far in your regular appropriations? Mr. GATCHELL. I would say, Mr. Chairman, we have probably absorbed approximately $20,000 so far. An additional $30,000 will undoubtedly come up during the second half of the fiscal year. REIMBURSABLE FUNDS Mr. GARY. What is included in the $13,760,000 item shown in your justification as "Additional amounts available"? You show in your justification a present appropriation or estimate of $72,370,000; then you have additional amounts available, $13,760,000, making a total amount available of $86,130,000. What is included in that $13,760,000? Mr. GATCHELL. Those are reimbursable items to the appropriation. They are in three major categories: First, the regular reimbursable operations of the Bureau of Customs with which I am sure you are familiar-warehouse officers, where merchandise is imported into a warehouse and it is supervised by a Customs warehouse officer whose salary is fully reimbursable to the Government. Whenever customs services are rendered after hours or on Sundays and holidays, at the request of the interested parties, those services are reimbursable at overtime rates. This type of regular Mr. GARY. That includes the cases where a ship comes into port at other than regular clearance time and the masters are anxious to have it cleared for customs immediately and you have to put on additional inspectors or work your force overtime in order to meet that request. You pay the men and the masters of the ship reimburse you; is that the situation? Mr. GATCHELL. That is correct, sir. These are all services rendered at the request of the parties at interest. They are regular Customs employees. We pay the salaries and overtime charges, then bill the parties at interest, and they reimburse us. The second category of reimbursable charges are those funds which come to us by transfer from the Department of Commerce for whom we enforce the export control laws. We perform the full enforcement of the Export Control Act of 1949, as amended. The third category of rembursements are those funds transferred from the Department of Agriculture, the Agricultural Research Service, for whom we intensify the examination of passengers' baggage and of foreign mail to minimize the possibility of bringing into the country harmful plant and animal pests. Mr. GARY. Those funds are all taken into account when you prepare your budget; is that correct? Mr. GATCHELL. Yes, sir. Mr. GARY. Mr. Pillion? Mr. PILLION. No questions, Mr. Chairman. Mr. GARY. Thank you. 29-190-64 COAST GUARD WITNESSES ADM. E. J. ROLAND, COMMANDANT CAPT. P. E. TRIMBLE, DEPUTY CHIEF OF STAFF CAPT. W. L. MORRISON, CONGRESSIONAL LIAISON OFFICER COMDR. W. H. BOSWELL, CHIEF, BUDGET AND COST ANALYSIS DIVISION JAMES A. REED, ASSISTANT SECRETARY OF THE TREASURY ERNEST C. BETTS, JR., DIRECTOR, OFFICE OF BUDGET AND FINANCE |